European Parliament adopts legislation mandating 40% EU-made hydrogen technology
Net Zero Industrial Act now very close to becoming European law
The legislative branch of the EU yesterday (Thursday) formally adopted a bill that aims to boost the manufacture and deployment of domestically-made net-zero technologies, including hydrogen equipment, bringing it close to becoming European law.
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The European Parliament (EP) adopted the Net Zero Industrial Act (NZIA) by 361 votes to 121, with 45 abstentions, meaning that the bill is now only awaiting approval from the European Council (made up of member-state governments) before entering the statute books.
The NZIA will also grant net-zero equipment makers streamlined permitting and other regulatory perks in order to boost manufacturing capability — with the end goal of 40% of total electrolyser (and other green hydrogen equipment) deployment being “Made In Europe”.
Specifically, the text of the NZIA adopted by the EP contains provisions for the creation of “Net-Zero Acceleration Valleys”, in which projects wanting to build new manufacturing facilities can apply to delegate parts of the evidence collection necessary for environmental assessments to host governments.
In addition, the bill sets a target for Europe to capture 15% of the global market of these technologies.
“This vote is good news for European industry and sets the tone for the next term,” said Christian Ehler, the Member of the European Parliament leading the bill. “To achieve all our economic, climate and energy ambitions, we need industry in Europe. This Act is the first step to making our market fit for this purpose.”
The bill is widely seen as an effort to temper the growing dominance of Chinese manufacturers in the global net -zero-technology market.
Chinese manufacturers currently make up 34% of the global electrolyser market, with Europe in second place with 27%.
And Western electrolyser manufacturers have warned that EU subsidy schemes that favour bidders with the lowest possible cost of production could end up simply subsidising cheap Chinese equipment.
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