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Net-Zero Industry Act

Europe and the exponential growth of net zero technologies

Net-Zero Industry Act Jacek Truszczynski

The net zero technologies – that is, those designed to reduce or eliminate greenhouse gas emissions in the production and consumption of energy – are expected to grow by 300% over the next six years, according to forecasts from the International Energy Agency. Considering this exponential increase, the Net-Zero Industry Act represents one of the EU’s major instruments to promote the transition towards a greenhouse gas emissions net zero economy in the coming decades. This is one of the key conclusions from the masterclass titled Improving European Competitiveness, delivered this Tuesday at the Brussels headquarters of the Spanish Chamber of Commerce in Belgium and Luxembourg by Jacek Truszczynski, Deputy Head of the Green and circular economy Unit at the European Commission. Sponsored by Zabala Innovation, the event brought together over 40 representatives from energy-intensive industries, businesses, and the banking sector.

In his talk, Truszczynski described the Critical Raw Materials Act as a “sister act,” a legislative initiative that complements the Net-Zero Industry Act. The key focus of the latter, he explained, is “to ensure the production of net zero technologies in Europe and guarantee their supply.” The fact that, despite 30 gigafactory projects across Europe, the Old Continent’s share in this sector is declining highlights the importance of this initiative for the EU’s competitiveness.

The Net-Zero Industry Act was adopted in June, and its implementation in the member states is progressing rapidly. One of its primary objectives, although not legally binding, is for 40% of the green technologies used in the EU to be produced in Europe. Truszczynski emphasised resilience as a key concept within the European regulations, comparing it to the protectionist policies of the United States and China, which are less dependent on exports. He pointed out that, for Europe, resilience will be a critical factor.

Extra advantages

In this way, the Net-Zero Industry Act aims to provide additional advantages to technologies produced within Europe, particularly regarding auctions, public procurement for innovation, and subsidies. Furthermore, this regulation streamlines the authorisation processes, which are notoriously slow in Europe.

Regarding the issue of financing innovation, some participants expressed concern about the limited funds available for implementing the act, while acknowledging that the current EU budget for 2021-2027 has already set. For the time being, the law will rely solely on existing funds, including those from the member states, the European Investment Bank, and the Recovery and Resilience Facility.

Innovation, he explained, is not the primary focus of the Net-Zero Industry Act, as it centres on technology readiness levels (TRLs) ranging from 7 to 9. Nevertheless, innovation is expected to play a more significant role in the upcoming Clean Industry Deal, which is part of the European Commission President Ursula von der Leyen’s plan for the first 100 days of her second term. In this context, regulatory environments will be crucial, allowing companies to test products without the restrictions of traditional regulations.

Zabala Innovation’s commitment to the Clean Industry Deal

Zabala Innovation’s activities are perfectly aligned with the objectives of the deal, through various projects focused on clean technologies and low-carbon solutions. In the Innovation Fund programme, this consultancy has achieved a success rate of 45% and supported, among others, the Ecoplanta project in the call held in 2021. Moreover, Zabala Innovation supports several initiatives within the Green Deal Industrial Plan, promoting net zero technologies, such as the Alternative Fuels Infrastructure programme under the Connecting Europe Facility (CEF AFIF).

Zabala Innovation has also made significant strides in the adoption of renewable hydrogen as an energy vector, participating in projects funded by the European Hydrogen Bank and the Clean Hydrogen Partnership, achieving a 100% success rate in proposals submitted in 2022 and 2023. The consultancy has also backed several key projects in Europe, such as the IPCEI Hy2Use, helping to enhance the renewable hydrogen value chain.

Additionally, Zabala Innovation specialises in the energy storage sector, with extensive experience in the Horizon Europe battery calls, advancing innovative solutions that improve grid stability and green mobility. The consultancy also coordinates the SET-IndEU project, which establishes a structured secretariat to support and strengthen the activities of the Implementation Working Group 6 (IWG6) of the Strategic Energy Technology Plan (SET Plan). SET-IndEU assists the European Commission and the IWG6 of the SET Plan in prioritising the demand for sustainable and efficient energy in the EU process industry. Its aim is to enhance synergies between industry and research and improve collaboration among the member states. Key areas of focus include electrification, increased circularity, and the deep integration of renewable energy sources.