Council of theEuropean Union
Brussels, 30 November 2023
(OR. en)16056/23
Interinstitutional File:
2023/0081(COD)
COMPET 1183
IND 632
MI 1053
BETREG 38
DIGIT 284
ECOFIN 1293
EDUC 467
ENER 645
POLCOM 298
RECH 531
CODEC 2291
NOTE
From:
To:

Permanent Representatives Committee (Part 1)
CouncilNo. prev. doc.:
No. Cion doc.:

15440/1/23 REV 1
7613/23 + 7613/23 ADD1

Subject:

Regulation on establishing a framework of measures for strengthening
Europe’s net-zero technology products manufacturing ecosystem (Net Zero
Industry Act)- General approachI.

INTRODUCTION

1.

On 16 March 2023, the Commission submitted to the European Parliament and the Council aproposal for a Regulation establishing a framework of measures for strengthening Europe’s
net-zero technology products manufacturing ecosystem (Net Zero Industry Act)1.

1

7613/23.

16056/23

VF/sk
COMPET.1

1

EN

2.

On 19 June 2023, the Commission issued a Staff Working Document underpinning the
proposal and providing explanatory information to substantiate the regulatory elements put
forward in the proposed Act2.

3.

As proposed by the Commission, the Net Zero Industry Act pursued the general objective ofsetting up a legal framework which supports the development of the manufacturing of netzero energy technologies in the Union, in order to support the Union’s 2030 decarbonisation
targets and 2050 climate neutrality target and to ensure the security of supply for net-zero
technologies needed to safeguard the resilience of the Union’s energy system.

4.

This general objective translates into specific objectives of facilitating investments for netzero technologies (pillar 1), reducing CO2 emissions (pillar 2), facilitating access to markets(pillar 3), enhancing skills for quality job creation in net-zero technologies (pillar 4),
supporting innovation (pillar 5) and creating a specific structure for implementing theseobjectives both in terms of governance and monitoring (pillars 6 and 7).

5.

The Commission proposed to base the Regulation on Article 114 of the Treaty on the
Functioning of the European Union which allows the Union to take measures that increase
harmonisation to create a level playing field within the Union in which net-zero technology
manufacturing can flourish. This is conducive to innovation and facilitates the green
transition.

II.

EXAMINATION BY THE OTHER INSTITUTIONS

6.

The European Parliament’s Committee on Industry, Research and Energy (ITRE) appointed
Mr Christian EHLER (EPP, DE) as rapporteur on the Net Zero Industry Act proposal. The
ITRE Committee voted on its amendments to the Commission’s proposal on
25 October 2023. The European Parliament’s negotiating mandate was voted at its plenary
session on 21 November 2023.

210870/23.

16056/23

VF/sk
COMPET.1

2

EN

7.

The opinion of the European Economic and Social Committee on the proposal for the Net
Zero Industry Act was adopted on 13 July 20233, while the requested opinion of theCommittee of the Regions was adopted on 5 July 20234.

III. WORK WITHIN THE COUNCIL
8.

The Permanent Representatives Committee heard a presentation from the Commission on the
Net Zero Industry Act proposal on 17 March 2023.

9.

The Council (Competitiveness), at its meeting on 22 May 2023, heard a presentation from theCommission on the content, aim and scope of the proposal.

10.

The Working Party on Competitiveness and Growth (Industry) started examining the proposal
under the Swedish Presidency on 20 March 2023, and held seven more meetings until the endof the Swedish Presidency term. A first compromise text prepared by the Swedish Presidency5
was issued in June 2023.

11.

The technical work continued during the Spanish Presidency with meetings of the Working
Party held on 5, 7 and 10 July that were the basis for the Spanish Presidency to elaborate arevised compromise text6. The Presidency endeavoured to improve the proposal’s clarity andfeasibility and to provide legal certainty, notably by reinforcing the consistency of provisions
with the internal market objectives. The revised compromise text was examined at Working
Party meetings on 11, 14 and 18 September 2023.

3
4
5
6

12012/23.
12167/23.
10895/23.
12590/23 + ADD 1.

16056/23

VF/sk
COMPET.1

3

EN

12.

The Permanent Representatives Committee, at its meeting on 13 October 2023, discussed thescope of the Net Zero Industry Act, the content of the list of strategic net-zero technologies, aswell as the approach on the use of criteria for auctions, public procurement and other support
schemes, and provided guidance on the way forward regarding these issues. While a large
number of delegations supported expanding the scope of the Net Zero Industry Act to also
cover transformative industrial technologies for decarbonisation, their opinions were moredivided with regards to the list of strategic net-zero technologies where, nevertheless, a clear
majority of delegations was in favour of including nuclear technologies and sustainable
alternative fuels. As far as access to markets is concerned, many delegations requested
flexibility for Member States to apply non-price criteria to achieve policy objectives such asenvironmental sustainability, innovation, energy integration or supply chain resilience throughaward procedures.

13.

In parallel, the Presidency prepared a third compromise text7, which was the basis fordiscussions by the Working Party on Competitiveness and Growth (Industry) at meetings on
16, 19 and 31 October and on 6 November 2023. A fourth compromise text8 of the Presidency
was examined by the Working Party at a meeting on 13 November 2023.

14.

On 22 November, the Permanent Representatives Committee examined a Presidency
compromise proposal (document 15440/23) for a General Approach on the Net Zero Industry
Act, with a view to forwarding it to the Competitiveness Council of 7 December for approval.
The debate showed that the text required more in-depth examination, and the Presidency
decided to revert to it, after modifications of the text.

15.

On 24 November, the Permanent Representatives Committee examined a revised Presidency
compromise proposal (document 15440/1/23 REV1) and the Presidency decided to submit itto the Council without further substantial modifications. The Presidency also concluded thattwo key political issues had been identified and should require examination at ministerial
level.

7
814082/23.
14983/23.

16056/23

VF/sk
COMPET.1

4

EN

16.

The Presidency presents the compromise text set out in the Annex to this note, which does notcontain substantial changes as compared to the previous Presidency text (document
15440/1/23 REV1). The minor editorial changes in the text are indicated in bold underlined
for additions and in strikethrough for deletions. In addition, the recitals in the text will need tobe adapted at a later stage, where relevant, to align them with the provisions.

17.

This compromise text reflects the continuous efforts of the Presidency and the Member States,with the support of the Commission, to find the right balance between the different interestsand objectives and to take up the delegations’ requests. Therefore, the Presidency considers
that it represents a good basis to start negotiations with the European Parliament.

IV.

KEY POLITICAL ISSUES- financial provisions related to the list of strategic net-zero technologies

18.

As compared to the Commission proposal, the Presidency proposes, in Article 3b, to include
nuclear fission energy technologies and sustainable alternative fuels technologies in the list of
strategic net-zero technologies, at the request of several delegations. At the same time, theproposal underlines, in paragraph 3 of the same Article, that this is without prejudice to a
Member State’s right to determine its choice between different energy sources and the general
structure of its energy supply, and on the allocation of Union funding or on Union support
through the European Investment Bank.
- auctions to deploy renewable energy sources

19.

The Presidency proposal adds the possibility for Member States to apply both prequalification and award criteria in Article 20 and establishes a minimum initial share of 20%of the volume auctioned per year per Member State to apply those criteria. The Commission
is empowered to define these criteria in an implementing act, and to revise the volume
auctioned based on an assessment on the functioning of the system.

16056/23

VF/sk
COMPET.1

5

EN

V.

CONCLUSION

20.

In the light of the above, the Council (Competitiveness), at its session on 7 December 2023, isinvited to examine the two key political issues abovementioned, and to agree on a generalapproach on the basis of the compromise proposal annexed to this note.

16056/23

VF/sk
COMPET.1

6

ENANNEX
2023/0081 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
on establishing a framework of measures for strengthening Europe’s net-zero technology
products manufacturing ecosystem (Net Zero Industry Act)
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Articles
114 thereof, and Article 192(1) thereof in relation to Articles 16 to 18 of this Regulation,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national Parliaments,
Having regard to the opinion of the European Economic and Social Committee9,
Having regard to the opinion of the Committee of the Regions10,
Acting in accordance with the ordinary legislative procedure,
Whereas:(1)

The net-zero transformation is already causing huge industrial, economic, and geopoliticalshifts across the globe, which will become ever more pronounced as the world advances in
its decarbonisation efforts.

9
10

OJ C 349, 29.09.2023, p. 179.
OJ C 2023/254, 26.10.2023.

16056/23
ANNEX

VF/sk
COMPET.1

7

EN

(1a)

Given the complexity and the transnational character of net-zero technologies,
uncoordinated national measures to ensure access to those technologies would have a highpotential of distorting competition and fragmenting the Single market. Uncoordinatedactions of Member States may result in imposing diverging regulation for market
operators, providing different levels of access to supply of net-zero technologies acrossMember States, including by providing different levels of support to net-zero technology
manufacturing projects, providing diverging rules and uncoordinated forms ofprocurement, diverging processes and durations in relation to permit-granting procedures,that would lead to obstacles to cross-border trade between Member States thus hindering
the proper functioning of the internal market. Therefore, to safeguard the functioning of theSingle Market it is necessary to create a common Union legal framework to collectively
address this central challenge by increasing the Union’s resilience, and security of supply
in the field of net-zero technologies.

16056/23
ANNEX

VF/sk
COMPET.1

8

EN

(1b)

At the same time, the Union has committed to the accelerated decarbonisation of its
economy and ambitious deployment of renewable energy sources to achieve climate
neutrality or net zero emissions (emissions after deduction of removals) by 2050. Thatobjective is at the heart of the European Green Deal, the updated EU Industrial Strategy,
and in line with the Union’s commitment to global climate action under the Paris
Agreement11. To reach the climate neutrality goal, Regulation (EU) 2021/1119 of theEuropean Parliament and of the Council12 sets a binding Union climate target to reduce net
greenhouse gas emissions by at least 55% by 2030 compared to 1990. The proposed “Fitfor 55”13 package aims to deliver on the Union’s 2030 climate target and revises andupdates Union legislation in this respect.

(1c)

In addition, the Communication on the Green Deal Industrial Plan for the Net-Zero Age14
sets out a comprehensive approach to support a clean energy technology scale up based onfour pillars. The first pillar aims at creating a regulatory environment that simplifies andstreamlines permitting for new net-zero technology manufacturing and assembly sites aswell as facilitating the scaling up of the net-zero industry of the Union. The second pillarof the plan is to boost investment in and financing of net-zero technology production. The
third pillar relates to developing the skills needed to make the transition happen andincrease the number of skilled workers in the clean energy technology sector. The fourthpillar focuses on trade and the diversification of the supply chain of critical raw materials.
That includes creating a critical raw materials club, working with like-minded partners tocollectively strengthen supply chains and diversifying away from single suppliers forcritical input.

11

12

13

14

Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of theEuropean Union, of the Paris Agreement adopted under the United Nations Framework
Convention on Climate Change OJ L 282, 19.10.2016, p. 4.
Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021
establishing the framework for achieving climate neutrality and amending Regulations (EC)No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
Communication from the Commission to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions. 'Fit for 55': delivering
the EU's 2030 Climate Target on the way to climate neutrality. COM(2021) 550, 14.7.2021.
Communication from the Commission to the European Parliament, the European Council, theCouncil, the European Economic and Social Committee and the Committee of the Regions: A
Green Deal Industrial Plan for the Net-Zero Age, COM/2023/62 final, 01.02.2023.

16056/23
ANNEX

VF/sk
COMPET.1

9

EN

(2)

The Single Market provides the appropriate environment for enabling cross-border accessat the necessary scale and pace to the technologies required to achieve the Union’s climate
and energy ambition. The road to net-zero translates into strong opportunities for the
expansion of the Union’s net-zero industry, making use of the strength of the Single
Market, by promoting investment in technologies, allowing for the decarbonisation of oureconomic sectors, from energy supply to transport, buildings, and industry. A strong netzero industry within the European Union can help significantly in reaching the Union’s
climate and energy targets effectively, as well as in supporting other Green Dealobjectives, while safeguarding and creating quality jobs and growth.

(7)

To meet the 2030 climate and energy targets, energy efficiency needs to be prioritised.
Saving energy is the cheapest, safest and cleanest way to meet those targets. ‘Energy
efficiency first’ is an overall principle of EU energy policy and is important in both its
practical applications in policy and investment decisions. Therefore, it is essential toexpand the Union’s manufacturing capacity for energy efficient technologies, such as heatpumps, district heating and cooling, and smart grid technologies that help the EU reduceand control its energy consumption.

16056/23
ANNEX

VF/sk
COMPET.1

10

EN

(8)

The Union’s decarbonisation objectives, security of energy supply, digitalisation of theenergy system and electrification of demand, for example in mobility and the need for
additional and faster recharging points, require an enormous expansion of electricity grids
in the European Union, both at transmission level and at distribution level. At transmission
level, high-voltage direct current (HVDC) systems are needed, among other things, toconnect offshore renewable energies; while at distribution level, connecting electricity
providers and managing demand-side flexibility builds on investments in innovative gridtechnologies, such as electric vehicles smart charging (EVSC), energy efficiency building
and industry automation and smart controls, advanced meter infrastructure (AMI) andhome energy management systems (HEMS). The electricity grid needs to interact withmany actors or devices based on a detailed level of observability, and hence availability of
data, to enable flexibility, smart charging and smart buildings with smart electricity grids
enabling demand side response from consumers and the uptake of renewables. Connecting
the net-zero technologies to the network of the European Union requires the substantial
expansion of manufacturing capabilities for electricity grids in areas such as offshore andonshore cables, substations and transformers.

(9)

Additional policy effort is therefore necessary to improve market conditions for thosetechnologies that are commercially available as well as the security of supply for net-zero
technologies and their supply chains, reduce market fragmentation, and safeguard orstrengthen the overall resilience and competitiveness of the Union’s energy system, while
having a good potential for rapid scale up to support the Union’s 2030 climate target. iIt
includes access to a safe and sustainable source of best in class fuels, as described in recital
8 of Commission Delegated Regulation (EU) 2022/1214.

16056/23
ANNEX

VF/sk
COMPET.1

11

EN

(10)

To achieve the 2030 objectives a particular focus is needed on some of the net-zero
technologies, that are considered strategic, also in view of their significant contribution
towards the path to net zero by 2050. These strategic net-zero technologies play a key rolein the Union’s open strategic autonomy, ensuring that citizens have access to clean,affordable, secure energy. Given their role, these technologies should benefit fromstreamlined and efficient permitting procedures, obtain the status of the highest nationalsignificance possible under national law and benefit from additional support to crowd-in
investments while still meeting EU and international obligations under nature Directives
and the Aarhus convention. The strategic net-zero technologies should be commerciallyavailable net-zero technologies, have a good potential for rapid scale up and have reachedtechnology readiness level of at least 8. Such technologies should strengthen the security ofsupply chains within the Union while contributing to decarbonisation objectives of theUnion and improving the functioning of the Single Market.

(10a)

The list of strategic net-zero technologies also includes technologies that not all Member
States accept as a source of clean and secure energy. This is in line with their right todetermine their choice between different energy sources and the general structure of theirenergy supply as well as their industrial policy. To safeguard these rights, the list of
strategic technologies is without prejudice to the funding allocation under the current
Multiannual Financial Framework 2021-27 in particular in terms of allocation eligibility
and award criteria related to energy technologies in Union funds, including those financed
through ETS allowances or support by the EIB. A Member State should also not be obliged
to recognise as strategic such projects supporting a value chain for a technology therelevant Member State does not accept as part of their energy mix.

(11)

In order to ensure that the Union’s future energy system is resilient this scaling-up should
be carried out across the whole supply chain of the technologies in question, in fullcoherence and complementarity with the [Critical Raw Materials Act] and the Chips Act.

16056/23
ANNEX

VF/sk
COMPET.1

12EN

(11-b)This Regulation should complement the [Critical Raw Materials Act] by focusing on the
manufacturing of net-zero technologies in terms of final products, key components, andspecific machinery used to produce these. The [Critical Raw Materials Act] focuses insteadon the upstream part of the supply chain, particularly critical raw materials, and their
extraction, processing and recycling. These are indispensable for a wide set of strategic
sectors including the net zero industry, the digital industry, aerospace, and defence sectors.
By following the same logic of nurturing a business case, upgrading, and providing
adequate skills, and supporting investments, this Regulation and the [Critical Raw
Materials Act] work together to create regulatory support synergies across the entire supply
chain of net-zero technology manufacturing in the Union. This Regulation clarifies that it
also covers processed materials that are an essential component of net-zero technologies,
excluding critical raw materials falling under the [Critical Raw Materials Act].

(11-a)

Final products and specific components which are essential for the production of net-zero
technologies are listed in Annex X in a non-exhaustive manner, these include final
products and their components that are manufactured and traded by a company, including
processed materials, but excluding raw materials covered under the [Critical Raw MaterialsAct]. In cases of integrated production facilities that cover production of materials fallingboth under the scope of the [Critical Raw Materials Act] and this Regulation, it should be
the facilities’ final product that determines the scope under which that facility is regulated.
Specific components and specific machinery not covered in Annex X may still fall under
the scope of this Regulation in cases where based on evidence provided to a national
competent authority, the project promoter can prove, for example via market studies or offtake agreements, that the specific components or specific machinery are primarily used forthe production of net-zero technologies, excluding critical raw materials falling under thescope of the CRMA.

16056/23
ANNEX

VF/sk
COMPET.1

13EN

(11a)

To address security of supply issues while contributing to supporting the resilience of theUnion’s energy system and decarbonisation and modernisation efforts, the net-zero
technology manufacturing capacity in the Union needs to expand. The Union needs toensure that the regulatory environment for manufacturers of solar photovoltaic (PV)technologies enables them to increase their competitive edge and improve security ofsupply perspectives, by aiming to reach at least 30 gigawatt of operational solar PV
manufacturing capacity by 2030 across the full PV value chain, in line with the goals set
out in the European Solar Photovoltaic Industry Alliance, which is supported under theUnion’s Solar Energy Strategy15. The Union needs to ensure that the regulatoryenvironment for manufacturers of wind and heat pump technologies enables them toconsolidate their competitive edge and maintain or expand their current market sharesthroughout this decade, in line with the Union’s technology deployment projections thatmeet its 2030 energy and climate targets16. This translates into a Union manufacturing
capacity for wind of at least 36 GW and, respectively, for heat pumps of at least 31 GW in
2030. Union manufacturers of batteries and electrolysers need to find a regulatoryenvironment that enables them to consolidate their technology leadership and actively
contribute to shaping these markets. For battery technologies this would mean contributing
to the objectives of the European Battery Alliance and aim at almost 90% of the Union’sbattery annual demand being met by the Union’s battery manufacturers, translating into a
Union manufacturing capacity of at least 550 GWh in 2030. For EU electrolyser
manufacturers, the REPowerEU plan projects 10 million tonnes of domestic renewablehydrogen production and a further up to 10 million tonnes of renewable hydrogen imports
by 2030.

15

16

Communication from the Commission to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions: EU Solar Energy
Strategy, SWD(2022) 148 final, 18.05.2022.
As per REPowerEU objectives set out in the REPowerEU Plan, COM/2022/230 final, andaccompanying Commission Staff Working Document Implementing the Repower EU Action
Plan: Investment Needs, Hydrogen Accelerator and achieving the Bio-Methane Targets
Accompanying the Document : Communication from the Commission to the European
Parliament, the European Council, the Council, the European Economic and Social
Committee and the Committee of the Regions REPowerEU Plan, SWD/2022/230 final,
18.05.2022.

16056/23
ANNEX

VF/sk
COMPET.1

14

EN

To ensure EU’s technological leadership translates into commercial leadership, as
supported under the Electrolyser Joint Declaration of the Commission and the European
Clean Hydrogen Alliance, EU electrolyser manufacturers should be enabled to further
boost their capacity, such that the overall installed electrolyser capacity being deployedreaches at least 100 GW hydrogen by 2030.
Union manufacturers of aviation and maritime fuels need to further develop, produce andscale up sustainable alternative fuels in order to significantly contribute to the reduction of
the transport sector’s greenhouse gas (GHG) emissions by 90% in 2050, as well as meetingthe obligations set in [ReFuel EU aviation / Fuel EU maritime]. This is also strongly
supported by the Renewable and Low-Carbon Fuels Value Chain Industrial Alliance. The
Union needs to ensure that the regulatory environment and support framework for
producers of sustainable aviation and maritime alternative fuels technologies enables themto increase their production capacities across the full fuels value chain, from the collection
and supply of feedstock to blending, including conversion and refining capacities.
(11b)

Considering these objectives together, while also taking into account that for certain
elements of the supply chain (such as inverters, as well as solar cells, wafers, and ingots forsolar PV or cathodes and anodes for batteries), the Union manufacturing capacity is low. In
order to help tackle import dependency and vulnerability concerns and ensure that theUnion’s climate and energy targets are met, an overall benchmark for the manufacturing ofstrategic net-zero technology products in the European Union is put forward, while striving
towards a similar benchmark for net-zero technologies. The Union net-zero technologies
annual capacity should aim at approaching or reaching an overall annual manufacturing
benchmark of at least 40% of annual deployment needs by 2030 for the strategic net-zero
technologies considered as a whole.

16056/23
ANNEX

VF/sk
COMPET.1

15EN

(11d)At the same time, net-zero technology products will contribute to the Union’s resilienceand security of supply of clean energy. A secure supply of clean energy is a prerequisite
for economic development, as well as for public order and security. Net-zero technology
products will also yield benefits to other strategically important economic sectors, such as
farming and food production by securing access to clean energy and machinery atcompetitive prices, thus contributing sustainably to EU food security and to providing an
increasing outlet for bio-based alternatives through circular economy. In the same way, thefulfilment of the Union’s climate ambitions will translate both into economic growth andsocial well-being.

(11e)

In order to maintain competitiveness and reduce current strategic import dependencies in
key net-zero technology products and their supply chains, while avoiding the formation of
new ones, the Union needs to continue strengthening its net-zero industrial base andbecome more competitive and innovation friendly. The Union needs to enable thedevelopment of manufacturing capacity faster, simpler and in a more predictable way,while reducing the administrative burden and eliminating cross-border obstacles.

(11f)

In order for net-zero technology manufacturing projects to be deployed or expanded as
quickly as possible to ensure the Union’s security of supply for net-zero technologies, it isimportant to create efficiency in planning and investment certainty by keeping theadministrative burden on project promoters to a minimum. For that reason, permit-granting
processes of the Member States for net-zero technology manufacturing projects should be
streamlined, whilst at the same time ensuring that such projects are safe, secure,environmentally sustainable, and comply with environmental, social and safety
requirements. Union environmental legislation sets common conditions for the process andcontent of national permit-granting processes, thereby ensuring a high level ofenvironmental protection.

16056/23
ANNEX

VF/sk
COMPET.1

16

EN

Being granted the status of net-zero strategic project should be without prejudice to any
applicable permitting conditions for the relevant projects, including those set out
in Directive 2011/92/EU of the European Parliament and of theCouncil17, Council Directive 92/43/EEC18, Directive 2000/60/EC of the European
Parliament and of the Council19, Directive 2012/18/EU of the European Parliament and of
the Council20, Directive 2004/35/EC of the European Parliament and of the Council21, andDirective (EU) 2010/75 of the European Parliament and of the Council22.
(11g)

At the same time, the unpredictability, complexity and at times, excessive length ofnational permit-granting processes undermines the investment security needed forthe effective development of net-zero technologies manufacturing projects. Therefore, inorder to ensure and speed up their effective implementation, Member States should apply
streamlined and efficient permitting procedures. In addition, net-zero strategic projects
should be regarded as urgent at national level and should therefore be given a priority
status insofar and to the extent to which national law provides for such urgency procedures
in all judicial and dispute resolution procedures relating to them, without preventing
competent authorities to streamline permitting for other net-zero technologies
manufacturing projects that are not net-zero strategic projects or more generally.

17

18
19

20

21

22

Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011
on the assessment of the effects of certain public and private projects on the environment (OJ
L 26, 28.1.2012, p. 1).
Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and ofwild fauna and flora (OJ L 206, 22.7.1992, p. 7).
Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000
establishing a framework for Community action in the field of water policy (OJ L 327,
22.12.2000, p. 1).
Directive 2012/18/EU of the European Parliament and of the Council of 4 July 2012 on thecontrol of major-accident hazards involving dangerous substances, amending andsubsequently repealing Council Directive 96/82/EC.
Directive 2004/35/CE of the European Parliament and of the Council of 21 April 2004 on
environmental liability with regard to the prevention and remedying of environmental damage(OJ L 143, 30.4.2004, p. 56).
Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010
on industrial emissions (integrated pollution prevention and control) (recast) (OJ L 334,
17.12.2010, p. 17).

16056/23
ANNEX

VF/sk
COMPET.1

17EN

(11h)

Given their role in ensuring the Union’s security of supply for net-zero technologies, andtheir contribution to the Union’s open strategic autonomy and the green and digitaltransition, responsible permitting authorities should consider net-zero strategic projects to
be in the public interest. Based on its case-by-case assessment, a responsible permitting
authority may conclude that the public interest served by the project overrides the public
interests related to nature and environmental protection and that consequently the project
may be authorised, provided that all relevant conditions set out in Directive 2000/60/EC,
Directive 92/43/EEC and Directive 2009/147/EC23 or in the [Nature Restoration
Regulation] are met.

(11i)

In order to reduce complexity and increase efficiency and transparency, project promotersof net-zero technologies manufacturing projects should be able to interact with adesignated contact point responsible for facilitating and coordinating the entire permit
granting process and facilitate the issuance of a comprehensive decision within theapplicable time limit. To that end, Member States should designate one or more single
points of contact. If a Member State decides to designate more than one contact point itshould provide clear information to the project promoters on which contact point is
responsible for their project. It should be for the Member State to decide whether thedesignated contact point should also be an authority taking permitting decisions or not. The
designated contact point should at least notify project promoters of the comprehensive
decision. Depending on a Member State’s internal organisation, it may be possible for thetasks of the designated contact point to be delegated to a different authority, either at local,
regional, or national level, subject to the same conditions.

23

Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009
on the conservation of wild birds (OJ L 20, 26.1.2010, p. 7–25).

16056/23
ANNEX

VF/sk
COMPET.1

18EN

(11j)In order to ensure clarity about the permitting status of net-zero strategic projects, Member
States should ensure that any dispute concerning permit granting process is resolved in atimely manner. To that end, Member States should ensure that applicants and project
promoters have access to a simple dispute settlement procedure and that net-zero strategic
projects are granted urgent treatment in all judicial and dispute resolution procedures
relating to them while ensuring respect for the rights of defence, if and to the extent,
national law provides for such urgency procedures.

(11k)

In order to allow businesses and project promoters, including for cross-border projects, todirectly enjoy the benefits of the internal market without incurring an unnecessary
additional administrative burden, Regulation (EU) 2018/1724 of the European Parliament
and the Council24, which established the Single Digital Gateway, provides for general rules
for the online provision of information, procedures and assistance services relevant for thefunctioning of the internal market. The information that needs to be submitted to national
competent authorities through the designated contact point, as part of the permit-granting
processes covered by this Regulation are to be covered in Annex I of Regulation (EU)2018/1724 following its amendment by this Regulation, and the related procedures areincluded in its Annex II to ensure that project promoters can benefit from fully online
procedures and the Once-Only Technical System Services. Designated contact points
acting as points of single contact pursuant to this Regulation are included in the list of
assistance and problem-solving services in Annex III of Regulation (EU) 2018/1724.

24

Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018
establishing a single digital gateway to provide access to information, to procedures and toassistance and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L
295, 21.11.2018, p. 1).

16056/23
ANNEX

VF/sk
COMPET.1

19EN

(11l)

Net-zero technology manufacturing projects undergo lengthy and complex permitting
procedures of 2-7 years, depending on the Member State, technology and value chain
segment. Considering the size of required investments – in particular for gigafactory-size
projects which are needed to reach the expected economies of scale – inadequate
permitting creates an additional and often detrimental barrier to increase net-zero
technology manufacturing capacity in the Union. In order to provide project promoters andother investors with the security and clarity needed to increase development of net-zero
technologies manufacturing projects, Member States should ensure that the permit-granting
process related to such projects does not exceed pre-set time limits. For net-zero strategic
projects the length of the permit-granting process should not exceed twelve months forfacilities with a yearly production output of 1 GW or more, and nine months for those witha yearly production output of less than 1 GW. For all other net-zero technology
manufacturing projects, the length of the permit-granting process should not exceed
eighteen months for facilities with a yearly production output of more than 1 GW, andtwelve months for those with a yearly production output of less than 1 GW. For net-zero
technologies for which the GW metric is not relevant, such as grids and carbon capture andstorage (CCS) or carbon capture and usage (CCU) technologies, the upper limits of theaforementioned deadlines should apply. However, the first step of the environmental
impact assessment within the Environmental Impact assessment Directive (2011/92/EU),
which consist of the preparation of an environmental impact assessment report, is often
predominantly performed by the project promoter. This step should therefore not be
integrated in the timelines which the Member States are bound upon as referred to in thepermit granting process. In addition, in exceptional cases related to the nature, complexity,
location or size of the proposed project, Member States should be able to extend thetimelines. Such exceptional cases could include unforeseen circumstances triggering theneed to add to or complete environmental assessments related to the project, or delays due
to expropriation processes when required.

16056/23
ANNEX

VF/sk
COMPET.1

20EN

(11m)In addition, given the importance of net-zero strategic projects for the Union’s energy
supply certain administrative restrictions should be partly lifted or simplified to speed up
their implementation.

(11n)

The environmental assessments and authorisations required under Union law, including in
relation to water, soil, air, ecosystems, habitats, biodiversity and birds, are an integral partof the permit granting procedure for a net zero technologies manufacturing project and an
essential safeguard to ensure negative environmental impacts are prevented or minimised.
However, to ensure that permit granting procedures for net zero technologies
manufacturing projects are predictable and timely, any potential to streamline the required
assessments and authorisations while not lowering the level of environmental protection
should be realised. In that regard, it should be ensured that the necessary assessments arebundled to prevent unnecessary overlap and it should be ensured that project promotersand responsible authorities explicitly agree on the scope of the bundled assessment before
the assessment is carried out to prevent unnecessary follow-up.

(11o)Land use conflicts can create barriers to the deployment of net-zero technologies
manufacturing projects. Well-designed plans, including spatial plans and zoning, that take
into account the potential for implementing net-zero technologies manufacturing projects
are prepared through public participation for which potential environmental impacts areassessed, have the potential to help balance the public interest and common good,decreasing the potential for conflict and accelerating the sustainable deployment of netzero technologies manufacturing projects in the Union. Responsible national, regional andlocal authorities should therefore be encouraged to include, where appropriate, provisions
for net-zero technologies manufacturing projects, including net-zero strategic projects,
when developing plans.

16056/23
ANNEX

VF/sk
COMPET.1

21

EN

(11oa) Member States could also use other policy instruments to support the manufacturing of
net-zero technologies and strategic net-zero technologies in specific geographical areas.
These policy instruments may include but are not limited to the clustering of net-zero
technology manufacturers, speeding up permit granting process, creating test facilities fornet-zero technologies, allowing for regulatory sandboxes, assisting cross-bordercooperation, facilitate electricity grid connection, physical and digital infrastructure andclean energy. These instruments should be designated by national or local authorities andcould either be appointed to new areas or to existing industrial sites.
(11p)

It is also necessary to provide for measures to reach the Union’s target of 50 million tonnesof annual operational CO2 injection capacity by 2030, thereby supporting thedecarbonisation of European industries and combating climate change.

(13)

The development of carbon capture and storage solutions for industry is confronted with acoordination failure. On the one hand, despite the growing CO2 price incentive provided by
the EU Emissions Trading System, for industry to invest into capturing CO2 emissions
making such investments economically viable, they face a significant risk of not being able
to access a permitted geological storage site. On the other hand, investors into first CO2
storage sites face upfront costs to identify, develop and appraise them even before they canapply for a regulatory storage permit. Transparency about potential CO2 storage capacity interms of the geological suitability of relevant areas and all existing geological data,
including raw and model data, in particular from the exploration of hydrocarbon
production sites, can support market operators to plan their investments. Member Statesshould, while taking into account confidentiality, national security and commercial
sensitivities as well as adequate compensation for privately generated and owned data,
make such existing data publicly available and report regularly in a forward-looking
perspective about any progress in developing CO2 storage sites and the correspondingneeds for injection and storage capacities, in order to collectively reach the Union-widetarget for CO2 injection capacity. These transparency obligations are without prejudice tothe right of Member States not to authorise or to limit the deployment of CO2 storage
capacity on their territory.

16056/23
ANNEX

VF/sk
COMPET.1

22EN

(13a)

To avoid stranded assets and ensure that the projected injection capacity will lead to CO2
reductions it is recognized that full and individual CCS value chains including capture,transport and storage need to be established by 2030 with appropriate regulations
guaranteeing competition and open access.

(14)

A key bottleneck for carbon capture investments that are today increasingly economically
viable is the availability of operating CO2 storage sites in Europe, which underpin the
incentives from Directive 2003/87/EC. To scale up the technology and expand its leading
manufacturing capacities, the EU needs to develop a forward-looking supply of permanentgeological CO2 storage sites permitted in accordance with Directive 2009/31/EU25 as well
as CO2 transport infrastructure. By defining a Union target of 50 million tonnes of annual
operational CO2 injection capacity by 2030, in line with the expected capacities needed in
2030 and taking into account the companies operating primarily in Member States withvery limited storage capacity due to legal, geological, geographical, technical or market
constraints, the relevant sectors can coordinate their investments towards a European NetZero CO2 transport and storage value chain that industries can use to decarbonise theiroperations. This initial deployment will also support further CO2 storage in a 2050
perspective. According to the Commission’s estimates, the Union could need to capture up
to 550 million tonnes of CO2 annually by 2050 to meet the net zero objective26, including
for carbon removals. Such a first industrial-scale storage capacity objective will de-risk
investments into the capturing of CO2 emissions as important tool to reach climate
neutrality. When this regulation is incorporated into the EEA Agreement, the Union targetof 50 million tonnes of annual operational CO2 injection capacity by 2030 will be adjusted
accordingly.

25

26

Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on thegeological storage of carbon dioxide and amending Council Directive 85/337/EEC, European
Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC,
2008/1/EC and Regulation (EC) No 1013/2006 (Text with EEA relevance), (OJ L 140,
5.6.2009, p. 114).
In depth analysis in support of the Commission Communication (2018/773) A Clean Planet
for all. A European long-term strategic vision for a prosperous, modern, competitive andclimate neutral economy.

16056/23
ANNEX

VF/sk
COMPET.1

23

EN

(15)

By defining CO2 storage sites and their transport infrastructure that contribute to theUnion’s 2030 target as net-zero strategic projects, the development of CO2 storage sites
can be accelerated and facilitated, and the increasing industrial demand for storage sites
can be channelled towards the most-cost-effective storage sites. An increasing volume ofdepleting gas and oil fields that could be converted into safe CO2 storage sites are at theend of their useful production lifetime. In addition, the oil and gas industry has affirmed its
determination to embark on an energy transition and possesses the assets, skills andknowledge needed to explore and develop additional storage sites. To reach the Union’s
target of 50 million tonnes of annual operational CO2 injection capacity by 2030, a valuechain approach should be fostered by actions taken both at EU and national level tofacilitate licensees of oil and gas production in the EU to undertake the necessary
investments in and in order to develop viable business models for the entire carbon dioxide
value chain. In order to ensure a timely, Union-wide and cost-effective development of
CO2 storage sites in line with the EU objective for injection capacity, licensees of oil andgas production in the EU should contribute to this target pro rata of their oil and gas
manufacturing capacity, while providing flexibilities to cooperate and take into accountother contributions of third parties.

(21a)

Considering that in some Member States storage capacities covering the obligations ofregulated entities are already being developed, those Member States may request theCommission to exempt entities obligated to contribute to the Union target of 50 million
tonnes of annual operational CO2 injection capacity by 2030. The exemption would release
entities from their individual contribution to the target in case the annual operational CO2
injection capacity on the territory of that Member State exceeds the sum of the individual
contributions that result from the relevant production activities. Additional capacities canbe made available to other obligated entities in the form of agreements to the extent thatthey have not been accounted for to justify the exemption.

16056/23
ANNEX

VF/sk
COMPET.1

24

EN

(22)

Member States should submit updated drafts of their 2021-2030 National Energy andClimate Plans (NECPs) in June 202327. As emphasised in the Commission’s Guidance toMember States for the update of the 2021-2030 national energy and climate plans28, theupdated plans should describe Member States’ objectives and policies to facilitate thescale-up of manufacturing projects of commercially available energy efficient and lowcarbon technologies, equipment and key components within their territory. Those plans
should also describe Member States’ objectives and policies to achieve such scale-up
through diversification efforts in third countries, and to enable their industries to capture,transport and store CO2 emissions permanently in geological storage sites.

(24)

Under the first pillar of the Green Deal Industrial Plan for the Net-Zero Age, the Union
should develop and maintain an industrial basis for the provision of net-zero technology
solutions to secure its energy supply, while also living up to its ambitions on climate
neutrality. To support that goal and to avoid dependencies for the supply of net-zero
technologies that would delay the Union’s greenhouse gas emission reductions efforts or
put the security of supply of energy at risk, this Regulation should set out provisions toencourage demand for sustainable and resilient net-zero technologies.

(25)

Directives 2014/23/EU, 2014/24/EU and 2014/25/EU allow contracting authorities andentities awarding contracts through public procurement procedures to rely, in addition to
price or cost, on additional criteria for identifying the most economically advantageoustender. Such criteria concern the quality of the tender including social, environmental andinnovative characteristics. When awarding contracts for net-zero technology throughpublic procurement, tendering conditions should take into account the tenders’ contribution
to sustainability and resilience in relation to a series of criteria relating to the tender’senvironmental sustainability, innovation, resilience and, where applicable, system
integration. Criteria need to be balanced and SME participation ensured.

27

28

Member States shall update their national plans for 2021-2030 by June 2023 (draft plans) and
June 2024 (final plans). See Article 14 and requirements of Chapter 2 and Annex I of theRegulation (EU) 2018/1999.
Commission Notice on the Guidance to Member States for the update of the 2021-2030
national energy and climate plans (OJ C 495, 29.12.2022, p. 24).

16056/23
ANNEX

VF/sk
COMPET.1

25

EN

(26)

Social sustainability criteria can already be applied under existing legislation and can
include working conditions and collective bargaining in line with the European Pillar ofSocial Rights in line with Articles, 30 (3) of Directive 2014/23/EU, 18 (2) of Directive
2014/24/EU and 36 (2) of Directive 2014/25/EU. Member States should contribute tosocial sustainability by taking the appropriate measures to ensure that in the performanceof public contracts economic operators comply with applicable obligations in the fields ofsocial and labour law established by Union law, national law, collective agreements or by
the international environmental, social and labour law provisions listed in Annex X of
Directive 2014/23/EU, Annex X of Directive 2014/24/EU and Annex XIV of Directive
2014/25/EU29.

29

Commission Notice "Buying Social - a guide to taking account of social considerations inpublic procurement (2nd edition)", C(2021) 3573 final.

16056/23
ANNEX

VF/sk
COMPET.1

26

EN

(27)

In compliance with Directives 2014/23/EU, 2014/24/EU, 2014/25/EU and applicablesectoral legislations, and with the Proposal for a Regulation of the European Parliamentand of the Council establishing a framework for setting ecodesign requirements forsustainable products30 and the Regulation of the European Parliament and of the Council
concerning batteries and waste batteries31, and unless otherwise indicated therein, whenevaluating the environmental sustainability of the net-zero solutions procured on the basisof this Regulation, contracting authorities and contracting entities may take into accountvarious elements with an impact on the climate and the environment. These may include,
for instance, the durability and reliability of the solution; the ease of repair andmaintenance and access to such services; the ease of upgrading and refurbishment; the easeand quality of recycling; the use of substances; the consumption of energy, water and otherresources in one or more life cycle stages of the product; the weight and volume of the
product and its packaging; the incorporation of renewable materials or used components;
the quantity, characteristics and availability of consumables needed for proper use andmaintenance; the environmental footprint of the product and its life cycle environmental
impacts; the carbon footprint of the product; the microplastic release; emissions to air,water or soil released in one or more life cycle stages of the product; the amounts of waste
generated; the conditions for use. The mandatory application of criteria for procurement of
net zero technologies does not preclude the application of other relevant award criteria
provided for in applicable sectorial legislations. The weighting range of award criteria for
procurement of net-zero technologies gives contracting authorities and entities thepossibility to attribute significant importance to other criteria while ensuring that the aims
pursued with the sustainability and resilience considerations are sufficiently addressed.

30

31

Proposal for a Regulation of the European Parliament and of the Council establishing aframework for setting ecodesign requirements for sustainable products and repealing
Directive 2009/125/EC, COM/2022/142 final, 30.03.2022.
Regulation of the European Parliament and of the Council concerning batteries and waste
batteries, amending Directive 2008/98/EC and Regulation (EU) 2019/1020 and repealing
Directive 2006/66/EC.

16056/23
ANNEX

VF/sk
COMPET.1

27

EN

(28)

For the purposes of taking into account within a public procurement procedure or an
auction to support the production or consumption of energy from renewable sources theneed to diversify sources of supply of net-zero technologies away from single sources ofsupply and without prejudice to the Union’s international commitments, the supply shouldat least be deemed insufficiently diversified where a single source supplies for more than
50 % of the demand for a specific net-zero technology and the specific components
primarily used for the production of those products within the Union.

(28a)

When procuring net-zero technologies, contracting authorities and contracting entities
might include these technologies as part of a larger procurement procedure. In this case,they should consider splitting the procurement procedure into separate lots, setting out theminimum requirements and the implementing acts thereof as requirements concerning thisspecific lot.

(28b)

To promote the responsible business conduct of bidders, the cybersecurity and data
security of the technologies used, the projects and the related infrastructures and topromote the delivery projects fully and on time, public authorities designing auctions forthe deployment of energy from renewable energy sources should include pre-qualification
criteria related to responsible business conduct, cybersecurity and data security and ability
to deliver the project fully and on time.

(28c)

To support the aim to develop and maintain an industrial basis for the provision of strategic
net-zero renewable energy technologies to secure the Union energy supply and to avoid
dependencies for the supply of these technologies that would delay the Union’s greenhousegas emission reductions efforts or put the security of energy supply at risk, publicauthorities designing auctions for the deployment of energy from renewable energy
sources should increase the sustainability and resilience of the supply of those technologies
within the Union.

16056/23
ANNEX

VF/sk
COMPET.1

28

EN

Member States should assess the auctions’ contribution to sustainability by examining theenvironmental sustainability of bids, their contribution to innovation and their contribution
to energy system integration. In order to do so, Member States should have the choice tointroduce pre-qualification or award criteria in the auction design. While pre-qualification
criteria must be fulfilled by all the bidders’ projects in order to be able to participate in theauction, award criteria aim at evaluating and ranking the different projects participating in
an auction.
(28d)

When evaluating the environmental sustainability of bids, either in the form of prequalification criteria or award criteria, public authorities designing auctions for the
deployment of energy from renewable energy sources may take into account various
elements with an impact on the climate and the environment. These may include, forinstance, the durability and reliability of the solution; the ease of repair and maintenanceand access to such services; the ease of upgrading and refurbishment; the ease and qualityof recycling; the use of substances; the consumption of energy, water and other resourcesin one or more life cycle stages of the product; the weight and volume of the product andits packaging; the incorporation of renewable materials or used components; the quantity,
characteristics and availability of consumables needed for proper use and maintenance; theenvironmental footprint of the product and its life cycle environmental impacts; the carbon
footprint of the product; the microplastic release; emissions to air, water or soil released in
one or more life cycle stages of the product; the amounts of waste generated; theconditions for use.

(28e)

To support the design and production of more innovative and advanced renewable energy
technologies, the sustainability contribution of bids may take into account, either in theform of pre-qualification criteria or award criteria, the contribution to innovation by
providing for pre-qualification or award criteria that promote the use of entirely new
solutions or the improvement of comparable state-of-the-art solutions.

16056/23
ANNEX

VF/sk
COMPET.1

29EN

(28f)

To support the integration of energy from renewable sources into the Union’s energy
system and its benefits to cost-effective decarbonisation, the sustainability contribution ofbids may take into account the contribution to energy system integration through, forinstance, flexibility solutions including demand response and energy storage, and the
production of renewable hydrogen.

(28g)

To increase the resilience of supply of strategic net-zero renewable energy technologies
and avoid excessive dependencies from countries with high concentration of supply within
the Union, public authorities should evaluate by means of award criteria the resilience
contribution of the different projects participating in auctions for the deployment of energy
from renewable energy sources taking into account the need to diversify the supply ofstrategic net-zero renewable energy technologies, without prejudice to the Union’s
international commitments. When ranking bids, public authorities should take into accountthat the supply should at least be deemed insufficiently diversified where a single source
supplies more than 50% of the demand for a specific net-zero technology and the specificcomponents primarily used for the production of those products within the Union
originates from a third country.

(28h)

The weighting of criteria on the sustainability and resilience contribution of the tender in
relation to auctions for the deployment of energy from renewable sources is without
prejudice to the possibility for the authorities designing those auctions to set a higher
threshold for the criteria relating to environmental sustainability, innovation and energy
system integration if this is compatible with any limit for non-price criteria set under Stateaid rules.

16056/23
ANNEX

VF/sk
COMPET.1

30

EN

(29)

For the purposes of setting up schemes benefitting households or consumers which
incentivise the purchase of net-zero technology final products and of diversifying sourcesof supply of net-zero technologies, and without prejudice to the Union’s international
commitments, the supply should be deemed insufficiently diversified where a single source
supplies more than 65% of the total demand for a specific net-zero technology within theUnion. To ensure a consistent application, the Commission should publish a yearly list
starting on the date of application of this Regulation, of the distribution of the origin of net
zero technology final products which fall under this category, broken down by the share ofUnion supply originating in different sources in the last year for which data is available.

(30)

Council Decision 2014/115/EU approved in particular the amendment to the World Trade
Organisation Agreement on Government Procurement (the ‘GPA’)32. The aim of the GPA
is to establish a multilateral framework of balanced rights and obligations relating to public
contracts with a view to achieving the liberalisation and expansion of world trade. For
contracts covered by the European Union’s Appendix I to the GPA, as well as by otherrelevant international agreements by which the Union is bound, including free trade
agreements and the Article III:8(a) of the General Agreement on Tariffs and Trade of 1994
for procurement by governmental agencies of products purchased with a view tocommercial resale or with a view to use in the production of goods for commercial sale,
contracting authorities and contracting entities should not apply the requirements of Article
19 (5) (2) point (d) to economic operators of sources of supply that are signatories to theagreements.

32

Council decision 2014/115/EU of 2 December 2013 on the conclusion of the Protocol
Amending the Agreement on Government Procurement, (OJ L68, 7.3.2014, p. 1).

16056/23
ANNEX

VF/sk
COMPET.1

31

EN

(31)

The application of the provisions on resilience in public procurement procedures should be
without prejudice to the application of Article 25 of Directive 2014/24/EU of the European
Parliament and of the Council33, and Articles 43 and 85 of Directive 2014/25/EU of theEuropean Parliament and of the Council34, as according with the Commission’s guidanceof 201935. The same way, public procurement provisions should continue to apply toworks, supplies and services subject to this Regulation, including article 67 (4) of Directive
2014/24/EU, Article 82 (4) of Directive 2014/25/EU and Article 41 (2) of Directive
2014/23/EU and any implementing measures resulting from the Proposal for a Regulation
establishing a framework for setting ecodesign requirements for sustainable products.

(33)

In order to limit administrative burden resulting from the need to take into account criteria
requirements relating to the sustainability and resilience contribution of the tender, inparticular for smaller public buyers and for contracts of lower value which do not have an
important impact on the market, the application of the relevant provisions of thisRegulation should be deferred for two years for public buyers which are not central
purchasing bodies and for contracts of a value below EUR 25 million.

(34)

For the purposes of the application of the provisions on public procurement, where a
product is covered by a delegated act adopted under Regulation (EU) 2017/1369 of theEuropean Parliament and of the Council36, contracting authorities or contracting entities
should purchase only the products that comply with the obligation laid down in Article 7(2) of that Regulation.

33
34

35
36

Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on
public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).
Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on
procurement by entities operating in the water, energy, transport and postal services sectors
and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243).
Communication from the Commission: Guidance on the participation of third country bidders
and goods in the EU procurement market, Brussels, 24.7.2019, C(2019) 5494 final.
Regulation (EU) 2017/1369 of the European Parliament and of the Council of 4 July 2017setting a framework for energy labelling and repealing Directive 2010/30/EU (OJ L 198,
28.7.2017, p. 1).

16056/23
ANNEX

VF/sk
COMPET.1

32

EN

(35)

Households and final consumers are an essential part of the Union’s demand for net-zero
technologies final products and public support schemes to incentivize the purchase of suchproduct by households, in particular for vulnerable low- and lower middle-class income
households and consumers, are important tools to accelerate the green transition. Under thesolar rooftop initiative announced in the EU solar strategy37, Member States should for
instance set-up national programmes to support the massive deployment of rooftop solar
energy. In the REPowerEU plan, the Commission called Member States to make full use of
supporting measures which encourage switching to heat pumps. Such support schemes set
up nationally by Member States or locally by local or regional authorities should also
contribute to improving the sustainability and resilience of the EU net-zero technologies.
Public authorities should for instance provide higher financial compensation tobeneficiaries for the purchase of net-zero technology final products that will make a higher
contribution to resilience in the Union. Public authorities should ensure that their schemes
are open, transparent and non-discriminatory, so that they contribute to increase demand
for net-zero technology products in the Union. Public authorities should also limit theadditional financial compensation for such products so as not to slow down the deploymentof the net-zero technologies in the Union. To increase the efficiency of such schemes
Member States should ensure that information is easily accessible both for consumers andfor net-zero technology manufacturers on a free website. The use by public authorities ofthe sustainability and resilience contribution in schemes targeted at consumers orhouseholds should be without prejudice to State aid rules and to WTO rules on Subsidies.

(36)

When designing schemes benefitting households or consumers which incentivise thepurchase of net-zero technology final products as defined in this Regulation, Member
States, regional or local authorities, bodies governed by public law or associations formedby one or more such authorities or one or more such bodies governed by public law, should
ensure the respect of the Union’s international commitments, including by ensuring that
schemes do not reach a magnitude that causes serious prejudice to the interest of WTO
members.

37

Communication from the Commission to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions : EU Solar Energy
Strategy, COM(2022) 221 final, 18.05.2022.

16056/23
ANNEX

VF/sk
COMPET.1

33

EN

(37)

The Commission may also assist Member States in the design of schemes targeted athouseholds and consumers to build synergies and exchange best practices. The Net-Zero
Europe Platform should also play an important role in accelerating the implementation of
the sustainability and resilience contribution by Member States and public authorities intheir public procurement and auctioning practices. It should issue guidance and identify
best practices on how to define the contribution and use it, providing concrete and specificexamples.

(38)

To enable the industry to adjust its production on time, contracting authorities andcontracting entities should inform the market in advance of their estimated procurement
needs for net-zero technology products.

(38a)

In addition to measures oriented towards public and household demand, the Union could
consider action to ease the deployment of net zero technologies in the EU industrial value
chains with particular attention to SMEs, notably through facilitating the connection
between supply and demand from industry.

(39)

As indicated in the Communication on the Green Deal Industrial Plan for the Net-ZeroAge, published on 1 February 2023, the Union’s industry’s market shares are under strongpressure, due to subsidies in third countries which undermine a level playing field. Thistranslates in a need for a rapid and ambitious reaction from the Union in modernising its
legal framework.

16056/23
ANNEX

VF/sk
COMPET.1

34

EN

(40)

Access to finance is key for ensuring the Union’s open strategic autonomy and forestablishing a solid manufacturing base for net-zero technologies and their supply chains
across the Union. The majority of investments necessary to reach the Green Dealobjectives will come from private capital38 attracted by both the growth potential of the
net-zero ecosystem and a stable and ambitious policy framework. Well-functioning, deep
and integrated capital markets will therefore be essential to raise and channel the funds
needed for the green transition and net-zero manufacturing projects. Swift progress
towards the Capital Markets Union is thus necessary for the EU to deliver on its net-zero
objectives. The sustainable finance agenda (and blended finance) also plays a crucial rolein scaling up investments into the net-zero technologies along the value chains, while
guaranteeing the competitiveness of the sector.

38

Commission Staff Working Document Identifying Europe's recovery needs Accompanying
the document Communication from the Commission to the European Parliament, theEuropean Council, the Council, the European Economic and Social Committee and theCommittee of the Regions - Europe's moment: Repair and Prepare for the Next Generation,
SWD(2020) 98 final, Identifying Europe's recovery needs, 27.05.2020.

16056/23
ANNEX

VF/sk
COMPET.1

35

EN

(41)

Private investment by companies and financial investors is essential. Where private
investment alone is not sufficient, the effective roll-out of net-zero manufacturing projects
may require public support, for example in the form of guarantees, loans or equity andquasi-equity investments, while avoiding distortion within the internal market. When thispublic support comes in the form of State aid, such aid must have an incentive effect andbe necessary, targeted, temporary, appropriate and proportionate, while preserving
competition and cohesion in the internal market. The existing State aid guidelines that haverecently undergone an in-depth revision in line with the twin transition objectives provide
ample possibilities to support investments for projects in the scope of this Regulation
subject to certain conditions. Member States can have an important role in easing access tofinance for net-zero technologies manufacturing projects by addressing market failuresthrough targeted and temporary State aid support. The Temporary Crisis and Transition
Framework (TCTF) adopted on 9 March 2023 aims at ensuring a level playing field within
the internal market, targeted to those sectors where a third-country delocalisation risk has
been identified, and proportionate in terms of aid amounts. It would enable Member States
to put in place measures to support new investments in production facilities in defined,
strategic net-zero sectors, including via tax benefits.
The permitted aid amount can be modulated with higher aid intensities and aid amountceilings if the investment is located in assisted areas, in order to contribute to the goal of
convergence between Member States and regions. Appropriate conditions are required toverify the concrete risks of diversion of the investment outside the European Economic
Area (EEA) and that there is no risk of relocation within the EEA. To mobilise national
resources for that purpose, Member States may use a share of the ETS revenues that
Member States have to allocate for climate-related purposes.

16056/23
ANNEX

VF/sk
COMPET.1

36EN

(41a)

Public support should be used to address specific identified market failures or sub-optimal
investment situations in a proportionate manner, and actions should not duplicate or crowdout private financing or distort competition in the internal market. Actions should have aclear added value for the Union. Public investment can in particular focus on the necessary
infrastructure investments, on fostering innovation and the upscaling of breakthroughtechnologies.

(42)

Several Union funding programmes, such as the Recovery and Resilience Facility,
InvestEU, cohesion policy programmes or the Innovation Fund are also available to fundinvestments in net-zero technology manufacturing projects.

(43)

The amended Recovery and Resilience Facility Regulation39 made available an additional
EUR 20 billion of non-repayable support to Member States in order to promote energy
efficiency and replace fossil fuels, amongst others through EU net-zero industry projects.
As pointed out in the Commission Guidance on the REPowerEU chapters40, Member
States are encouraged to include in the REPowerEU chapter of their recovery andresilience plans, measures supporting investments in net-zero technologies manufacturing
and industrial innovation, in accordance with Regulation (EU) 2021/241 of the European
Parliament and of the Council41.

(44)

InvestEU is the EU flagship programme to boost investment, especially the green anddigital transition, by providing financing and technical assistance, for instance throughblending mechanisms. Such an approach contributes to crowd in additional public andprivate capital. In addition, Member States are encouraged to contribute to the InvestEU
Member State compartment to support financial products available to net-zero technology
manufacturing, without prejudice to applicable State aid rules.

39

40
41

Regulation (EU) 2023/435 of the European Parliament and of the Council of 27 February
2023 amending Regulation (EU) 2021/241 as regards REPowerEU chapters in recovery andresilience plans and amending Regulations (EU) No 1303/2013, (EU) 2021/1060 and (EU)2021/1755, and Directive 2003/87/EC, (OJ L 63, 28.2.2023, p. 1).
Commission Notice Guidance on Recovery and Resilience Plans in the context of
REPowerEU 2023/C 80/01, (OJ C 80, 3.3.2023, p. 1).
Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February
2021 establishing the Recovery and Resilience Facility, (OJ L 57, 18.2.2021, p. 17).

16056/23
ANNEX

VF/sk
COMPET.1

37

EN

(45)

Member States can provide support from cohesion policy programmes in line withapplicable rules under Regulation (EU) 2021/1060 of the European Parliament and of theCouncil42 to encourage the take up of net-zero strategic projects in less developed andtransition regions through investment packages of infrastructure, productive investment ininnovation, manufacturing capacity in SMEs, services, training and upskilling measures,
including support to capacity building of the public authorities and promoters. The
applicable co-financing rates set in programmes may be up to 85% for less developed
regions and up to 60% or 70% for transition regions depending on the fund concerned andthe status of the region but Member States may exceed these ceilings at the level of the
project concerned, where feasible under State aid rules. The Technical Support Instrument
can help Member States and regions in preparing net-zero growth strategies, improve thebusiness environment, reducing red tape and accelerating permitting. Member Statesshould be encouraged to promote the sustainability of net-zero strategic projects byembedding these investments in European value chains, building notably on interregionaland cross border cooperation networks.

(46)

The Innovation Fund also provides a very promising and cost-efficient avenue to support
the scaling up of manufacturing and deployment of renewable hydrogen and other strategic
net zero technologies in Europe, including, innovative projects with a positive climate
impact in the maritime and aviation sector, thus reinforcing Europe’s sovereignty in key
technologies for climate action and energy security.

42

Regulation (EU) 2021/1060 of the European Parliament and of the Council of 24 June 2021
laying down common provisions on the European Regional Development Fund, the European
Social Fund Plus, the Cohesion Fund, the Just Transition Fund and the European Maritime,
Fisheries and Aquaculture Fund and financial rules for those and for the Asylum, Migration
and Integration Fund, the Internal Security Fund and the Instrument for Financial Support for
Border Management and Visa Policy (OJ L 231, 30.6.2021, p. 159).

16056/23
ANNEX

VF/sk
COMPET.1

38

EN

(48)

To overcome the limitations of the current fragmented public and private investments
efforts, facilitate integration and return on investment, the Commission, and Member
States should better coordinate and create synergies between the existing funding
programmes at Union and national level as well as ensure better coordination andcollaboration with industry and key private sector stakeholders. The Net-Zero Europe
Platform has a key role to play to build a comprehensive view of available and relevant
funding opportunities and to discuss the individual financing needs of net-zero strategic
projects.

(59)

Space data and services derived from EU Space Programme, and in particular Copernicus,
shall be used to the extent possible to provide information on the geology, biology,
ecology, socio-economic development, and resource availability for the environmental
assessments and authorisations; such data and services and in particular the Copernicus
anthropogenic CO2 emission monitoring and verification capacity are most relevant toassess the impact of industry projects and the impact of anthropogenic CO2 sinks on the
global greenhouse gas concentrations and fluxes.

(61)

Hydrogen Valleys with industrial end-use applications play an important role indecarbonising the energy-intensive industries. REPowerEU set the objective of doubling
the number of Hydrogen Valleys in the Union. In order to achieve this objective, Member
States should accelerate permitting and consider regulatory sandboxes and prioritise accessto funding. To strengthen the net-zero resilience, Member States should ensure theinterconnection of Hydrogen Valleys across the Union’s borders. Industrial installations
which produce their own energy, and which can provide a positive contribution to the
production of electricity, should be encouraged to contribute to the smart electricity grid asenergy producers by simplifying regulatory requirements.

16056/23
ANNEX

VF/sk
COMPET.1

39

EN

(62)

Net-zero regulatory sandboxes can be an important tool to promote innovation in the fieldof net-zero technologies and regulatory learning. Innovation needs to be enabled throughexperimentation spaces as scientific outcomes need to be tested in a controlled real-word
environment. Regulatory sandboxes should be introduced to test innovative net-zero
technologies or other innovative technologies with potential to enable the transition to a
climate neutral, clean economy and reduce strategic dependencies, in a controlledenvironment for a limited amount of time, thus enhancing regulatory learning and potential
scaling up and wider deployment. It is appropriate to strike a balance between legal
certainty for participants in the Net-Zero regulatory sandboxes and the achievement of theobjectives of Union law. Member States should be able to allow for derogations of net zero
regulatory sandboxes in national legislation while in any case ensuring compliance with
Union law and with the essential requirements on Net-Zero technology laid in national law.
The Commission will publish a Guidance for Sandboxes document in 2023 as announced
in the New European Innovation Agenda to support Member States in preparing the net
zero technology sandboxes. Those innovative technologies could eventually be essential toachieve the Union’s climate neutrality objective, ensure the security of supply andresilience of the Union’s energy system.

16056/23
ANNEX

VF/sk
COMPET.1

40

EN

(64)

The scaling up of European net-zero technology industries’ value and supply chainsrequires significant additional skilled workers which implies important investment needs inre-skilling and upskilling, including in the field of vocational education and training. Thisshould contribute to the creation of quality jobs in line with the targets for employment andtraining of the European Pillar of Social Rights. The energy transition will require asignificant increase in the number of skilled workers in a range of sectors, including
renewable energy and energy storage and raw materials, and has a great potential for
quality job creation. The skill needs for the fuel cell hydrogen sub-sector in manufacturing
alone are estimated at 180.000 trained workers, technicians and engineers by the year
2030, according to the Commission’s European Strategic Energy Technology Plan43. In thephoto-voltaic solar energy sector, up to 66.000 jobs would be needed in manufacturing
alone. The European network of employment services (EURES) is providing information,
advice and recruitment or placement for the benefit of workers and employers, including
across internal market borders.

43

European Commission, Directorate-General for Research and Innovation, Joint ResearchCentre, The strategic energy technology (SET) plan, Publications Office, 2019,https://data.europa.eu/doi/10.2777/04888.

16056/23
ANNEX

VF/sk
COMPET.1

41

EN

(65)

Since strengthening the manufacturing capacity of key net-zero technologies in the Union
will not be possible without a sizeable skilled workforce, it is necessary to introduce
measures to boost the activation of more people to the labour market, notably women,
young people not in employment, education or training (NEETs), older persons andpersons with disabilities. In addition, in line with the objectives of the Council
Recommendation on ensuring a fair transition towards climate-neutrality, specific support
for job-to-job transition for workers in redundant and declining sectors are important. Thismeans investing in skills and in quality job creation required for net-zero technologies in
the Union. Building on and fully taking into account existing initiatives such as the EU
Pact for Skills, EU level activities on skills intelligence and forecasting, such as by theEuropean Centre for the Development of Vocational Training (Cedefop) and the European
Labour Authority, and the Blueprints for sectoral cooperation on skills, the objective is tomobilise all actors and to train on all skill levels to the extent needed: Member States
authorities, including at regional and local levels, education and training providers, socialand economic partners and industry, in particular SMEs, to identify skills needs, develop
education and training programmes and deploy these at large scale in a fast and operationalmanner. Net-zero strategic projects have a key role to play in this regard. Member States
and the Commission may ensure financial support including by leveraging the possibilitiesof the Union budget through instruments such as the European Social Fund Plus, Just
Transition Fund, European Regional Development Funds, the Recovery and Resilience
Facility, the Modernisation Fund, REPowerEU and the Single Market Programme.

16056/23
ANNEX

VF/sk
COMPET.1

42

EN

(66)

European Net-Zero Industry Academies should be launched to develop education andtraining programmes, content and materials, as well as the credentials showing that thesehave been used, to upskill and reskill people of all working ages required for key net-zero
technology value chains and offer these programmes, content and materials to appropriate
education and training providers in the Member States for their voluntary use. Net-Zero
Academies are organisations or consortia or projects of relevant stakeholders being
awarded seed-funding by the European Commission. The Academies should play afacilitating role, fully respecting the responsibility of the Member States for the content ofteaching and the organisation of education systems and for the content and organisation of
vocational training. The Academies should offer education and training programmes,
content and materials, which education and training providers, economic and social
partners and other actors involved in up- and reskilling in the Member States, such as
Public Employment Services may choose to use, where they consider it useful. Economic
and social partners should be involved in the development of training programmes toensure relevance and increase the uptake. The Academies should encourage that, next toother required skills, transversal skills facilitating occupational mobility are taught. The
Academies will aim to support the quality of the education and training offered byeducation and training providers in the Member States using learning programmes, content
and materials developed by the Academies, including by training their trainers.

16056/23
ANNEX

VF/sk
COMPET.1

43

EN

(66a)In order to support skills transparency and portability and the mobility of workers, theEuropean Net-Zero Industry Academies will develop and promote the deployment byeducation and training providers of credentials, including micro-credentials, coveringlearning achievements. The credentials developed by the European Net-Zero Industry
Academies may be issued by the education and training providers in the Member States, orawarding bodies in the Member States, where an education and training programme
developed by the Academies has been completed successfully. The credentials may be
issued in the format of European credentials for learning and could be integrated in
EUROPASS and, where relevant and feasible, included in National Qualifications
Frameworks. Continuous reskilling and upskilling offered via the academies and therelevant education and training providers in their territories may be encouraged by Member
States, for example, through national programmes and Union funding.

(67)

While in the absence of specific provisions introducing minimum training requirements forthe access to a regulated profession or the pursuit thereof laid down in the Union law, it isa Member State’s competence to decide whether and how to regulate a profession, nationalrules organizing access to regulated professions must not constitute an unjustified ordisproportionate obstacle to the exercise of those fundamental rights. The competence toregulate access to a profession must be exercised within the limits of the principles of nondiscrimination and proportionality, in accordance with Directive (EU) 2018/958 of theEuropean Parliament and of the Council of 28 June 2018 on a proportionality test before
adoption of new regulation of professions.

(68)

Where Member States determine that the learning programmes developed by the European
net-zero industry academies lead to credentials that correspond to the knowledge, skills
and competences required for access to a regulated profession or to activities that are partof a regulated profession, Member States should, in order to facilitate the mobility instrategic net-zero industry professions, treat these credentials as evidence of formal
qualifications to which they attest, in line with Directive 2005/36/EC of the European
Parliament and of the Council on the recognition of professional qualifications.

16056/23
ANNEX

VF/sk
COMPET.1

44

EN

(69)

At Union level, a Net-Zero Europe Platform, should be established, composed of theMember States and chaired by the Commission. The Net-Zero Europe Platform may advise
and assist the Commission and Member States on specific questions and provide areference body, in which the Commission and Member States coordinate their action andfacilitate the exchange of information on issues relating to this Regulation. The Net-Zero
Europe Platform should further perform the tasks outlined in this Regulation, notably in
relation to permitting, including points of single contact, net-zero strategic projects,
coordination of financing, access to markets, skills, net-zero regulatory sandboxes as wellas consulting the Commission in assessing the feasibility and proportionality of proposing
measures if the Commission concludes that the general objectives of the Regulation are not
likely to be achieved. Where necessary, the Platform may establish standing or temporary
subgroups and invite third parties, such as experts or representatives from net-zeroindustries and social and economic partners.

(69a)

Where appropriate and useful, the Net-Zero Europe Platform should seek close
collaboration with other relevant Commission initiatives, platforms and groups, in order toseek synergies, share expertise, exchange information and foster stakeholder involvement,
whilst avoiding duplication and overlaps. The Platform will engage with the existing EU
industrial alliances, and thereby contribute to the work of the alliances by involving
Member States. Key alliances for collaboration with the Platform are the European Battery
Alliance, the European Solar Photovoltaic Industry Alliance, the European Clean
Hydrogen Alliance, the Alliance for Zero-Emission Aviation, the Industrial Alliance on
Processors and Semiconductor Technologies and the Renewable and Low-Carbon Fuels
Value Chain Industrial Alliance. Sectors not currently represented in industrial alliances
equally benefit from the structured framework that the Net-Zero Europe Platform provides.
As regards net-zero strategic partnerships, close collaboration with the Critical Raw
Materials Board is foreseen where relevant.

16056/23
ANNEX

VF/sk
COMPET.1

45

EN

(70)

As part of the Green Deal Industrial Plan the Commission announced its intention toconclude Net-Zero Industrial Partnerships covering net-zero technologies, to adopt netzero technologies globally and to support the role of EU industrial capabilities in paving
the way for the global clean energy transition. The Commission and Member States may
coordinate within the Platform the Partnerships, discussing existing relevant partnerships
and processes, such as green partnerships, energy dialogues and other forms of existing
bilateral contractual arrangements, as well as potential synergies with relevant Member
States’ bilateral agreements with third countries.

(71)

The Union should aim to diversify and stimulate international trade and investments in netzero technologies and to promote globally high social and environmental standards. Thisshould be done in close cooperation and partnership with like-minded countries. Similarly,
stronger research and innovation efforts to develop and deploy net-zero technologies
should be pursued in close cooperation with partner countries in an open but assertive
approach and based on reciprocity and mutual interests.

(72)

Where the power to adopt acts in accordance with Article 290 of the Treaty is delegated to
the Commission under this Regulation, it is of particular importance that the Commission
carries out appropriate consultations during its preparatory work, including at expert level,
and that those consultations be conducted in accordance with the principles laid down in
the Inter-institutional Agreement on Better Law-Making of 13 April 2016. In particular, toensure equal participation in the preparation of delegated acts, the European Parliament
and the Council receive all documents at the same time as Member States’ experts, andtheir experts systematically have access to meetings of Commission expert groups dealing
with the preparation of delegated acts.

(73)

To the extent that any of the measures envisaged by the present Regulation constitute Stateaid, the provisions concerning such measures are without prejudice to the application of
Articles 107 and 108 of the Treaty.

16056/23
ANNEX

VF/sk
COMPET.1

46

EN

(74)

Since the objective of this Regulation cannot be sufficiently achieved by the Member
States and can rather, by reason of the scale or effects of the action, be better achieved atUnion level, the Union may adopt measures in accordance with the principle ofsubsidiarity as set out in Article 5 of the Treaty. In accordance with the principle ofproportionality as set out in that Article, this Regulation does not go beyond what isnecessary in order to achieve that objective.

16056/23
ANNEX

VF/sk
COMPET.1

47

EN

HAVE ADOPTED THIS REGULATION:
Chapter I
Subject matter, scope and definitions
Article 1
Subject matter
1.

The general objective of this Regulation is to improve the functioning of the internalmarket by establishing a framework to ensure the Union’s access to a secure andsustainable supply of net-zero technologies, while contributing to achieving the Union’s
2030 target of reducing net greenhouse gas emissions by at least 55% relative to 1990
levels and the Union’s 2050 climate neutrality target.

2.

To contribute to achieving the general objective referred to in paragraph 1, this Regulation
contains measures aimed ata)lowering the risk of supply disruptions related to net-zero technologies likely to distortcompetition and fragment the internal market, in particular by identifying andsupporting the scale-up of the manufacturing capacity of net-zero technologies andtheir value chains;b)encouraging demand for sustainable and resilient net-zero technologies throughpublic procurement, auctioning and other forms of public interventions;c)enhancing skills through the support of net-zero academies, thereby safeguarding andcreating quality jobs;d)supporting innovation through the creation of net-zero regulatory sandboxes;e)improving the Union's ability to monitor and mitigate the supply risk related to netzero technologies.

2a.

This Regulation also aims at establishing a Union market for CO2 storage services.

16056/23
ANNEX

VF/sk
COMPET.1

48

ENArticle 2
Scope
This Regulation applies to net-zero technologies, except for Articles 26 and 27 of this Regulation,
which apply only to innovative net-zero technologies and other innovative technologies withpotential to enable the transition to a climate neutral, clean economy and reduce strategic
dependencies. Critical raw materials falling under the scope of Regulation (EU) …/… [add footnote
with publication references of the Critical Raw Materials Regulation] shall be excluded from thescope of this Regulation.
In cases of integrated production facilities that cover production of materials falling both under thescope of the [Critical Raw Materials Act] and this Regulation, it shall be the facilities’ final productthat determines which Regulation applies.
Article 3
Definitions
1.

For the purpose of this Regulation, the following definitions shall apply:(a)’net-zero technologies’ means all technologies identified under Article 3a, which are
final products, specific components or specific machinery primarily used for the
production of those products, and which have reached a technology readiness level ofat least 8;(aa) ‘strategic net-zero technology’ means all technologies identified under paragraph 1
of Article 3b, which are final products, specific components or specific machineryprimarily used for the production of those products, and which have reached atechnology readiness level of at least 8.

16056/23
ANNEX

VF/sk
COMPET.1

49

EN

b)

‘primarily used’ means final products and specific components, which are essential
for the production of net-zero technologies, as set out in Annex X or final products,
specific components and specific machinery which are essential for the production of
net-zero technologies based on evidence provided to a national competent authority
by the project promoter, such as market studies or off-take agreements;(ac) ‘renewable energy’ means ‘renewable energy’ as defined in Directive (EU)2018/2001 of the European Parliament and of the Council of 11 December 2018 on
the promotion of the use of energy from renewable sources;(aca) ‘renewable fuels of non-biological origin’ means renewable fuels of non-biologicalorigin as defined by [Art. XX RED II Revision ];(ad) ‘sustainable alternative fuels’ means fuels destined for the aviation sector referred toin Article 3(7), 3(13) and 3(17) of the [Refuel Aviation Regulation] or fuels destinedfor the maritime sector as identified in applying the criteria defined in Articles 10(1)and 10(2) of the [FuelEU Maritime Regulation];(ae) ‘transformative industrial technologies for decarbonisation’ means the scaling up of
manufacturing capacity for transformative industrial technologies that are used tosignificantly and permanently reduce emission rates of CO2-eq of energy intensive
activities in the steel, aluminium, non-ferrous metals, basic chemicals, cement, lime,
glass, ceramics, fertilisers and paper sectors to the extent which is technicallyfeasible;(af) ‘biotech climate and energy solutions’ means technologies anchored in the use ofliving organism such as enzymes, microorganisms and bacterial culture able toreduce CO2 emissions by replacing energy-intensive fossil or chemical-based inputs
in industrial manufacturing processes relevant for inter alia carbon capture andproduction of biofuels;(b)‘component’ means a part of a net-zero technology that is manufactured and tradedby a company, including processed materials;

16056/23
ANNEX

VF/sk
COMPET.1

50

EN

(ba) ‘processed material’ means a material that is at an advanced stage of processing,excluding critical raw materials falling under CRMA, and designed to fulfil aspecific function in a net-zero technology;(c)‘innovative net-zero technologies’ means technologies which satisfy the definition of‘net-zero technologies’, except that they have not reached a technology readinesslevel of at least 8, and that comprise genuine innovation which are not currently
available on the market and are advanced enough to be tested in a controlledenvironment;(ca) 'other innovative technologies’ means energy or climate related technologies withproven potential to contribute to decarbonisation of industrial or energy systems andreduce strategic dependencies, which comprise genuine innovation not currently
available on the European market and which are advanced enough to be tested in acontrolled environment, but have not reached a technology level of at least 8;(d)‘net-zero technology manufacturing project’ means a planned commercial facility or
an extension or repurposing of an existing facility to manufacture net-zero
technologies;(e)‘net-zero strategic project’ means a net-zero technology manufacturing project, CO2
storage project or CO2 transport infrastructure project located in the Union that a
Member State has recognised as a net-zero strategic project in accordance with
Articles 10 and 11;16056/23
ANNEX

VF/sk
COMPET.1

51

EN

(f)

‘permit granting process’ means a process covering all relevant permits to construct,extend, change and operate net-zero technology manufacturing projects and strategic
projects encompassing all applications and procedures from the acknowledgementthat the application is complete to the notification of the comprehensive decision. For
CO2 geological storage, the permit granting process refers to the storage permit
granting process, which concerns processing of all necessary permits for surface
installations requested to operate a storage site (building permit, pipes
authorisation…) and the environmental authorisation for the injection and storage ofCO2 completed in accordance with Directive 2009/31/EC of the European
Parliament and of the Council of 23 April 2009 on the geological storage of carbon
dioxide and amending Council Directive 85/337/EEC, European Parliament andCouncil Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC
and Regulation (EC) No 1013/2006;(g)‘comprehensive decision’ means the decision or set of decisions taken by Member
State authorities that determines whether or not a project promoter is authorised to
implement a net-zero technology manufacturing project, without prejudice to any
decision taken in the context of an appeal procedure;(h)‘project promoter’ means any undertaking or consortium of undertakings developing
a net-zero technology manufacturing project or a net-zero strategic project;(i)‘net-zero regulatory sandbox’ means a scheme that enables undertakings to test
innovative net-zero technologies and other innovative technologies in a controlled
real-world environment, under a specific plan, developed and monitored by acompetent authority;(j)‘technology readiness level’ means a method of estimating the maturity oftechnologies, according to the classification used by the International Energy
Agency;(k)‘authorities concerned’ means authorities that, under national law, are involved in theissuing of permits as part of the permit-granting process as described in letter (f);16056/23
ANNEX

VF/sk
COMPET.1

52

EN

(l)

‘public procurement procedure’ means any of the following:(i)

any type of award procedure covered by Directive 2014/24/EU for theconclusion of a public contract or Directive 2014/25/EU for the conclusion of a
supply, works and service contract;(ii)

a procedure for the award of works or a service concession covered by
Directive 2014/23/EU;(m) ‘contracting authority’ in the context of public procurement procedures, means
contracting authority as defined in Article 6 of Directive 2014/23/EU, Article 2(1),point (1) of Directive 2014/24/EU and Article 3 of Directive 2014/25/EU;(n)‘contracting entity’ in the context of public procurement procedures, means
contracting entity as defined in, Article 7 of Directive 2014/23/EU and Article 4 of
Directive 2014/25/EU;(o)‘contract’, in the context of public procurement procedures, means a public contract
as defined in Article 2(1), point (5) of Directive 2014/24/EU, ‘contracts’ as definedin ‘supply, works and service contracts’ as defined in Article 2, point (1), of
Directive 2014/25/EU, and ‘concessions’ as defined in Article 5, point (1), of
Directive 2014/23/EU;(p)‘auction’ means a mechanism for competitive tendering procedures to support the
production or consumption of energy from renewable sources, not falling underDirectives 2014/23/EU, 2014/24/EU, 2014/25/EU and 2009/81/EC;(q)‘CO2 injection capacity’ means the annual amount of CO2 that can be injected in an
operational geological storage site, permitted under Directive 2009/31/EC, with the
purpose to reduce emissions or increase carbon removals, in particular from large
scale industrial installations and which is measured in tonnes per annum;

16056/23
ANNEX

VF/sk
COMPET.1

53

EN

(r)

‘energy system integration’ means solutions for the planning and operating of theenergy system as a whole, across multiple energy carriers, infrastructures, andconsumption sectors, by creating stronger links between them with the objective ofdelivering renewable-based, flexible, reliable and resource-efficient energy services,at the least possible cost for society and the environment;(s)‘manufacturing capacity’ means the total amount of output capacity of the net-zero
technologies produced in a manufacturing project. If the manufacturing project does
not produce final products but specific components or specific machinery primarily
used for the production of such products, then manufacturing capacity refers to
output capacity of the final product that would use such components or specificmachinery to be produced.
Chapter Ia
Net-zero technologies and strategic net-zero technologies
Article 3a
List of net-zero technologies

1.

The net-zero technologies within the scope of this Regulation are:a)renewable energy technologies;b)electricity and heat storage;c)heat pumps;

d)electricity grid technologiese)renewable fuels of non-biological origin technologies;f)sustainable alternative fuels technologies;g)hydrogen technologies, including electrolysers and fuel cells;i)nuclear technologies;

16056/23
ANNEX

VF/sk
COMPET.1

54

EN

j)

CO2 transport and carbon capture, utilisation, and storage technologies;k)energy-system related energy efficiency technologies;l)biotech climate and energy solutions, including biobased feedstock solutions;p)transformative industrial technologies for decarbonisation not covered under theprevious categories.
Article 3b
List of strategic net-zero technologies

1.

2.

The list of strategic net-zero technologies within the scope of this Act are:a)solar photovoltaic, solar thermal electric and solar thermal technologies;b)

onshore wind and offshore renewable technologies;c)battery and storage technologies;d)heat pumps and geothermal energy technologies;e)hydrogen technologies including, electrolysers and fuel cells;f)sustainable biogas and biomethane technologies;g)carbon capture and storage (CCS) technologies;h)electricity grid technologies;i)

nuclear fission energy technologies, including nuclear fuel cycle technologies;j)sustainable alternative fuels technologies.

The list in paragraph 1 is without prejudice to a Member State's right to determine its choice
between different energy sources and the general structure of its energy supply.

16056/23
ANNEX

VF/sk
COMPET.1

55

EN

3.

The list in paragraph 1 is without prejudice to the allocation of Union funding, in particular on
eligibility or award criteria, as adopted in accordance with the appropriate procedures, or on
Union support through the European Investment Bank.
Chapter II
Enabling conditions for net-zero technology manufacturing
SECTION I
STREAMLINING ADMINISTRATIVE AND PERMIT-GRANTING PROCESSES
Article 4
Point of single contact1.

By …[ 9 months after the date of entry into force of this Regulation], Member States shalldesignate one or more contact points at relevant levels of Member State administration.
The designated contact point shall be responsible for facilitating and coordinating thepermit-granting process for net-zero technology manufacturing projects, including for netzero strategic projects, and providing information on streamlining the administrative
process in line with Article 5, including information on when an application is considered
to be complete according to Article 6(2a) and 6(6).

1a.

In case of multiple designated contact points, Member States shall provide tools to help
project promoters identify the appropriate designated contact point on the online web page
set up in accordance with Article 5.

2.

The designated contact point shall be the sole point of contact for the project promoter inthe permit-granting process for a net-zero technology manufacturing project, including a
net-zero strategic project. The designated contact point shall notify the project promoter on
the outcome of the comprehensive decision.

16056/23
ANNEX

VF/sk
COMPET.1

56

EN

3.

The responsibilities of the designated contact point or the tasks related to it may bedelegated to another authority, for a net-zero technology manufacturing project, including
a net-zero strategic project, provided that:(a)the designated contact point notifies the project promoter of that delegation;(b)a single contact point is responsible for each of the projects;(c)a single contact point coordinates the submission of all relevant documents andinformation;(d)a single contact point provides information on relevant documentation needed for theapplication required in the permit-granting process.

4.

Project promoters shall be allowed to submit any documents relevant to the permitgranting process in electronic form.

5.

The competent authorities shall ensure that any relevant studies, permits or authorisations
issued or conducted for a given project are taken into account and that not duplicate
studies, permits or authorisations are required, unless otherwise required under national orUnion law.

6.

Member States shall ensure that applicants have easy access to information on proceduresfor the settlement of disputes concerning the permit-granting process including, whereapplicable, alternative dispute resolution mechanisms, if such procedures are provided bynational law.

7.

Member States shall ensure that the designated contact point has a sufficient number ofqualified staff and sufficient financial, technical and technological resources necessary, forthe effective performance of its tasks under this Regulation.

8.

The Platform referred to in Article 28 and 29 shall periodically discuss the implementationof this Section and Articles 12 and 13 and share best-practices for organising designatedcontact points.

16056/23
ANNEX

VF/sk
COMPET.1

57

EN

9.

The national competent authorities shall specify and make available to the designatedcontact point the requirements and extent of information requested of a project promoter
before the permit-granting process commences.
Article 5
Online accessibility of information

Member States shall provide access to the following information on processes relevant to net-zero
technology manufacturing projects, including net zero strategic projects, online and in a centralised
and easily accessible manner:(-a) the designated contact points referred to in Article 4 paragraph 1;(a)the permit-granting process, including information on dispute settlement;(b)financing and investment services;(c)funding possibilities at Union or Member State level;(d)business support services, including but not limited to corporate tax declaration, local
tax laws, labour law.
Article 6
Duration of the permit-granting process

1.

The permit-granting process for net-zero technology manufacturing projects shall not
exceed any of the following time limits:(a)

12 months for the construction or expansion of net-zero technology manufacturing
projects with a yearly manufacturing capacity of less than 1 GW;(b)

18 months for the construction or expansion of net-zero technology manufacturing
projects, with a yearly manufacturing capacity of 1 GW or more.

16056/23
ANNEX

VF/sk
COMPET.1

58

EN

2.

For net-zero technology manufacturing projects for which a yearly manufacturing capacity
is not measured in GW, the permit-granting process shall not exceed a time limit of 18
months.

2a.

Where an environmental impact assessment is required pursuant to Directive 2011/92/EU,
the steps of the assessment referred to in Article 1 (2)(g) (i) of that Directive shall not be
included in the duration for permit granting process referred to in paragraphs 1 and 2.

4.

In exceptional cases, where the nature, complexity, location or size of the proposed netzero technology manufacturing project or net-zero strategic project so requires, a Member
State may once extend the time limits referred to in Articles 6(1), 6(2), 13(1) and 13(2) bya maximum of 3 months before their expiry and on a case-by-case basis.
Where a Member State considers that the proposed net-zero technology manufacturing
project or net-zero strategic project raises exceptional risks for the health and safety ofworkers or of the general population, and where additional time is necessary to establishthat measures to address identifiable risks are put in place, it may extend those time limits
by a further 6 months, before their expiry and on a case-by-case basis.

5.

In either such event, the designated contact point shall inform the project promoter of thereasons for the extension and of the date when the comprehensive decision is expected inwriting.

5a

The designated contact point referred to in Article 4(1) shall notify the project promotor
when the environmental impact assessment report referred in Article 5(1) of Directive
2011/92/EU is due, taking into account the organisation of the permit granting process in
the relevant Member State and the need to allow sufficient time to assess the report. The
period as from the date the environmental impact report is due until the submission of thatreport shall not be counted towards the duration of the permit granting process referred toin paragraphs 1 and 2.

16056/23
ANNEX

VF/sk
COMPET.1

59

EN

Where the consultation according to article 1(2)(g)(ii) of Directive 2011/92/EU results inthe need to supplement the environmental impact assessment report with additional
information, the designated contact point referred to in Article 4(1) may give the project
promotor the opportunity to submit additional information. In such case, the designatedcontact point shall notify the project promotor when the additional information is due,
which shall be in no less than 30 days after the notification. The period as from the date theadditional information is due until the submission of that information shall not be counted
towards the duration of the permit granting process referred to in paragraphs 1 and 2.
6.

No later than 45 days following the receipt of a permit granting application, the designatedcontact point referred to in Article 4(1) shall acknowledge that the application is complete
or, if the project promoter has not sent all the information required to process theapplication, request the project promoter to submit a complete application without undue
delay. The date of the acknowledgement of the completeness of the application from thedesignated contact point referred to in Article 4(1) shall serve as the start of the permit
granting process for that particular application.

7.

No later than two months following the date of the acknowledgement, the designatedcontact point shall draw up, in close cooperation with other authorities concerned, adetailed schedule for the permit granting process.

8.

The time limits set in Articles 6 and 13 shall be without prejudice to obligations arisingfrom Union and international law, and without prejudice to administrative appeal
procedures and judicial remedies before a court or tribunal.

9.

The time limits set in Articles 6 and 13 for any of the permit granting procedures shall be
without prejudice to any shorter time limits set by Member States.

16056/23
ANNEX

VF/sk
COMPET.1

60

EN

Article 7
Environmental assessments and authorisations
1.

Where an environmental impact assessment is required pursuant to Directive 2011/92/EU,
the project promoter concerned may request, before submitting the application, an opinion to
the designated contact point on the scope and level of detail of the information to be
included in the environmental impact assessment report pursuant to Article 5(1) of that
Directive. The designated contact point shall ensure that the opinion referred to in the firstsubparagraph is issued as soon as possible and within a period of time not exceeding 45 days
from the date on which the project promoter submitted its request.

2.

Where the obligation to assess the effects on the environment arises simultaneously from
Directive 2011/92/EU, Directive 92/43/EEC, Directive 2009/147/EC of the European
Parliament and the Council, Directive 2000/60/EC, Directive 2001/42/EC of the European
Parliament and the Council , Directive 2008/98/EC of the European Parliament and of theCouncil, Directive 2010/75/EU, Directive 2012/18/EU of the European Parliament and theCouncil [or Nature Restoration Regulation COM (2022) 304 final], the Member State shallensure that a coordinated or a joint procedure fulfilling the requirements of that Union
legislation is applied.
Under the coordinated procedure referred to in the first subparagraph, a competentauthority shall coordinate the various individual assessments of the environmental impactof a particular project required by the applicable Union legislation.
Under the joint procedure referred to in the first subparagraph, a competent authority
shall provide for a single assessment of the environmental impact of a particular projectrequired by the applicable Union legislation.

3.

The Member State shall ensure that a reasoned conclusion as referred to in Article 1(2),point (g)(iv) of Directive 2011/92/EU on the environmental impact assessment isissued within three months of receiving all necessary information gathered pursuant to
Articles 5, 6 and 7 of that Directive and completing the consultations referred to in Articles
6 and 7 of that Directive.

16056/23
ANNEX

VF/sk
COMPET.1

61

EN

4.

The timeframes for consulting the public concerned as referred to in Article 1(2)(e) of
Directive 2011/92/EU and authorities referred to in Article 6(1) of that Directive on theenvironmental report referred to in Article 5(1) of that Directive shall not be longer than 90
days.
Article 8Planning

1.

Member States shall encourage that national, regional and local authorities responsible forpreparing plans, including zoning, spatial plans and land use plans, include in such plans,
where appropriate, provisions for the development of net-zero technology manufacturing
projects, including net-zero strategic projects and all the necessary infrastructure.

2.

Where plans include provisions for the development of net-zero technology manufacturing
projects, including net-zero strategic projects, and are subject to an assessment pursuant
to Directive 2001/42/EC and pursuant to Article 6 of Directive 92/43/EEC, those
assessments shall be streamlined. Where relevant, that streamlined assessment shall also
address the impact on all potentially affected water bodies and verify whether the plan may
prevent a water body from complying with the obligations set out in Article 4 of Directive
2000/60/EC, to achieve good status or good potential and not to deteriorate status or
potential. Where relevant Member States are required to assess the impacts of existing andfuture activities on the marine environment, including land-sea interactions, as referred toin Article 4 of Directive 2014/89/EU, these impacts shall also be covered by thestreamlined assessment.
Article 8a
Establishment of Net Zero Acceleration Areas

1.

Member States may adopt plans designating specific areas to accelerate net-zero
technology manufacturing projects, including net-zero strategic projects or clusters thereof,
to test innovative net-zero technologies, facilitate permit granting processes and, where
relevant, develop economic opportunities and share responsibilities.

16056/23
ANNEX

VF/sk
COMPET.1

62

EN

2.

Those plans shall:(a)define a clear geographical scope for the Net Zero Acceleration Areas;(b)exclude Natura 2000 sites and areas designated under national protection schemes fornature and biodiversity conversation and identified bird and marine mammal
migratory routes;(c)

be subject to an environmental assessment pursuant to Directive 2001/42/EC of theEuropean Parliament and of the Council, and, where applicable, to an assessment
pursuant to Article 6(3) of Directive 92/43/EEC. This provision is without prejudice
to compliance of individual projects with applicable Union environmental
legislation;(d)3.

ensure synergies with the designation of renewables acceleration areas of RED3.

Member States may facilitate the necessary infrastructure in the Net Zero Acceleration
Areas to develop net-zero projects. This can be, but is not limited to, physical, digital orelectricity infrastructure.
Article 8b
Permitting under Net Zero Acceleration Areas

1.

The provisions provided in sections 1 and 2 shall apply to individual projects in Net Zero
Acceleration Areas.

2.

In view of avoiding duplication of assessments, the designated contact point shall take into
account the results of the assessments undertaken under Article 8a point 2(c), when issuingof the opinion under Article 7(1).

3.

The point of single contact may create templates indicating the specific permits needed forthe projects in the Net Zero Acceleration Areas and its submission to the competentauthorities. Templates may be shared in the Net-Zero Europe Platform.

16056/23
ANNEX

VF/sk
COMPET.1

63

EN

Article 9
Applicability of UNECE Conventions
1.

The provisions set out in this Regulation are without prejudice to the obligations under
Articles 6 and 7 of the United Nations Economic Commission for Europe (UNECE)
Convention on Access to Information, Public Participation in Decision-making and Accessto Justice in Environmental Matters, signed at Aarhus on 25 June 1998, and under the
UNECE Convention on environmental impact assessment in a transboundary context,
signed at Espoo on 25 February 1991, and its Protocol on Strategic Environmental
Assessment, signed in Kyiv on 21 May 2003.

2.

All decisions adopted pursuant to this Section and Articles 12 and 13 shall be madepublicly available.
SECTION II
NET-ZERO STRATEGIC PROJECTS
Article 9a
BenchmarkThe Commission and Member States shall support Strategic Projects in accordance with thisSection in order to ensure that by 2030, manufacturing capacity in the Union of the strategic netzero technologies listed in Article 3b, approaches or reaches a benchmark of at least 40% of theUnion’s annual deployment needs for the corresponding technologies necessary to achieve theUnion’s 2030 climate and energy targets.
Article 10
Selection criteria
1.

Member States shall recognise as net-zero strategic projects those net-zero technology
manufacturing projects corresponding to a technology listed in Article 3b, and located in
the Union that contributes to the realisation of the objectives and meet at least one of thefollowing criteria.

16056/23
ANNEX

VF/sk
COMPET.1

64

EN

(a)

the net-zero technology manufacturing project contributes to the technological andindustrial resilience of the Union’s net-zero technologies by increasing the
manufacturing capacity of a component or a segment of the net-zero technology
value chain for which the Union heavily depends on imports coming from a single
third country;(b)

the net-zero technology manufacturing project has a clear positive impact on theUnion’s net-zero industry supply chain or downstream sectors, with spill over effects
in other Member States beyond the project promoter and the Member Statesconcerned, while contributing to the competitiveness, Union’s climate and energy
targets and quality job creation of the Union’s net-zero industry supply chain,according to at least one of the following criteria:(i)it adds significant manufacturing capacity in the Union for the net-zero
technology concerned that contributes to the realisation of the objective set out
in Article 9a;(ii)

it manufactures technologies with improved environmental sustainability andperformance;

and according to at least one of the following criteria:(iii) it puts into place measures to attract, upskill or reskill a workforce required fornet-zero technologies, including through apprenticeships, in close cooperation
with social partners;(iv) it adopts comprehensive low-carbon and circular manufacturing practices,
including, for example, waste heat recovery, side stream valorisation and water
efficiency;
2.

Member States shall recognise as net-zero strategic projects CO2 storage projects that meetthe following cumulative criteria:

16056/23
ANNEX

VF/sk
COMPET.1

65

EN

(a)

the CO2 storage site is located in the territory of the Union, its exclusive economic
zones or on its continental shelf within the meaning of the United Nations
Convention on the Law of the Sea (UNCLOS);(b)

the CO2 storage project contributes to reaching the objective set out in Article 16;(c)the CO2 storage project has applied for a permit for the safe and permanentgeological storage of CO2 in accordance with Directive 2009/31/EC.

2a.

CO2 capture projects and CO2 transport infrastructure projects that facilitate connections of
installations capturing CO2 with CO2 storage sites recognised as net-zero strategic projects
according to paragraph 2, shall also be considered as net-zero strategic projects.

2b.

The Commission shall provide general information, data and guidance for the assessmentof the criteria in paragraphs 1 and 2.

3.

Net-zero technology manufacturing projects corresponding to a technology as defined in
Article 3(1), point (aa), located in ‘less developed and transition regions’ and Just
Transition Fund Territories and eligible for funding under cohesion policy rules, shall be,after the award procedure has been completed, recognised by Member States as net-zerostrategic projects under Article 11(3) upon written request of the project promoter without
the project promoter having to submit a formal application under Article 11(2).

4.

A net-zero technology manufacturing project located in the Union that contributes to therealisation of the general objective set out in Article 1(1) and that either benefits from theETS Innovation Fund, or is part of Important Projects of Common European Interest,
European Hydrogen Valleys, or of the Hydrogen Bank, when the funds support investment
in manufacturing capacities corresponding to a technology as defined in Article 3(1), point(aa), shall be recognised by Member States as net-zero strategic project under Article 11(3)upon request of the project promoter without the project promoter having to submit aformal application under Article 11(2).

16056/23
ANNEX

VF/sk
COMPET.1

66

EN

5.

Where a net-zero strategic project contributes to a value chain for a technology that a
Member State does not accept as part of the general structure of its energy supply, theMember State may refuse to grant the project status.
Article 11
Application and recognition

1.

Applications for recognition as net-zero strategic projects shall be submitted by the project
promoter to the relevant Member State.

2.

The application referred to in paragraph 1 shall contain all of the following:(a)relevant evidence related to the fulfilment of the criteria laid down in Article 10(1) or
(2);

(b)

a business plan evaluating the financial viability of the project consistent with theobjective of creating quality jobs;(c)a first estimation of a timetable for the project, in order to estimate when the project
would be able to contribute to the Unions manufacturing capacity benchmark in
Article 9a or Union level objective of CO2 injection capacity in article 16.

2a.

The Commission shall provide a pre-set form to submit the applications referred to inparagraph 1.

3.

Member States shall assess the application referred to in paragraph 1 through a fair andtransparent process within a month of the receipt of the complete application. If the project
promoter has not sent all the relevant and complete information required to process anapplication, the Member State shall request, once only, that the project promoter submit
complementary information without undue delay, in order to reach a complete application.
The date of the acknowledgement of the completeness of the submission shall serve as thestart of the assessment process.

16056/23
ANNEX

VF/sk
COMPET.1

67

EN

3a.

If there is no decision within the timeframe in paragraph 3, the project promoter may notify
the Net-Zero Europe Platform and the Commission shall request without undue delay theMember State to provide the project promoter with an updated deadline. The Member State
shall then specify the timeframe of when the decision on the recognition of the project as
strategic will be taken.

4.

The Commission may provide its opinion on the approved net-zero strategic projects. In
the case of a rejection of the application by a Member State, the applicant shall have theright to submit the application to the Commission, which shall assess the application within
20 working days. The Commission’s assessment is without prejudice to the Member
State’s decision.

5.

Where the Commission, following its assessment in accordance with paragraph 4, confirms
the rejection of the application by the Member State, it shall notify the applicant of its
conclusion in the form of a letter. Where the Commission differs in its assessment from theMember State, the Net-Zero Europe Platform as established in Article 28 shall discuss the
project in question.

6.

Where the Commission or a Member State finds that a net-zero strategic project has
undergone substantial changes or that it no longer fulfils the criteria set out in Article 10(1)or 10(3), or where its recognition was based on an application containing incorrect
information, it shall inform the project promoter concerned. After hearing the project
promoter, the Member State may repeal the decision granting a project the status of netzero strategic project.

7.

Projects which are no longer recognised as net-zero strategic project shall lose all rights
connected to that status under this Regulation.

8.

The Commission shall set up and maintain an openly available registry of net-zerostrategic projects.

16056/23
ANNEX

VF/sk
COMPET.1

68

EN

Article 12
Priority status of net-zero strategic projects
1.

Project promoters and all authorities concerned shall ensure that for net-zero strategic
projects those processes are treated in the most rapid way possible in accordance with
Union and national law.

2.

Without prejudice to obligations provided for in Union law, when a project is granted thestatus of net-zero strategic project, Member States shall grant net-zero strategic projects thestatus of the highest national significance possible, where such a status exists in nationallaw, and be treated accordingly in the permit-granting processes including those relating toenvironmental assessments and if national law so provides, to spatial planning.

3.

Net-zero strategic projects shall be considered to contribute to the security of supply ofstrategic net-zero technologies in the Union and therefore to be in the public interest. With
regard to the environmental impacts addressed in Articles 6(4) and 16(1)I of Directive
92/43/EEC, Article 4(7) of Directive 2000/60/EC and Article 9(1)(a) of Directive
2009/147/EC [or in Articles 4(8) and 4(8a) of the Nature Restoration Regulation,] net-zerostrategic projects in the Union shall be considered as being of public interest and may beconsidered as having an overriding public interest provided that all the conditions set out inthose acts are fulfilled.

4.

All dispute resolution procedures, litigation, appeals and judicial remedies related to netzero strategic projects in front of any national courts, tribunals, panels, including mediationor arbitration, where they exist in national law, shall be treated as urgent, if and to theextent to which national law concerning permit granting processes provides for suchurgency procedures and provided that the normally applicable rights of defence ofindividuals or of local communities would be respected Project promoters of net-zerostrategic projects shall participate in such urgency procedure, where applicable.

16056/23
ANNEX

VF/sk
COMPET.1

69

EN

Article 13
Duration of the permit-granting process for net-zero strategic projects
1.

The permit-granting process for net-zero strategic projects shall not exceed any of thefollowing time limits:(a)

9 months for the construction or expansion of net-zero strategic projects with ayearly manufacturing capacity of less than 1 GW;(b)

12 months for the construction or expansion of net-zero strategic projects, with ayearly manufacturing capacity of 1 GW or more;(c)

18 months for all necessary permits to operate a storage site in accordance with
Directive 2009/31/EC.

2.

For net-zero strategic technologies for which a yearly manufacturing capacity is notmeasured in GW, the permit-granting process shall not exceed a time limit of 12 months.

2a.

Where an environmental impact assessment is required pursuant to Directive 2011/92/EU,
the steps of the assessment referred to in Article 1 (2)(g) (i) of that Directive shall not be
included in the duration for permit granting process referred to in paragraphs 1 and 2.
Article 14
Accelerating implementation of net-zero strategic projects

1.

The Commission and the Member States shall, where relevant, undertake activities toaccelerate and crowd-in private investments in net-zero strategic projects. Such activities
may, without prejudice to Article 107 and Article 108 of the TFEU, include providing andcoordinating support to net-zero strategic projects facing difficulties in accessing finance.

2.

Member States may provide administrative support to net-zero strategic projects tofacilitate their timely and effective implementation, including by providing:

16056/23
ANNEX

VF/sk
COMPET.1

70

EN

(a)

assistance to ensure compliance with applicable administrative and reporting
obligations;(b)assistance to project promoters to inform the public, to increase the public acceptanceof the project.
Article 15
Coordination of financing

1.

The Net-Zero Europe Platform as established in Article 28 shall discuss financial needs
and bottlenecks of net-zero strategic projects, potential best practices, in particular todevelop EU cross-border supply chains, notably based on regular exchanges with therelevant industrial alliances.

2.

The Net-Zero Europe Platform shall, at the request of the net-zero strategic project
promoter, discuss and advise on how the financing of its project can be completed, taking
into account the funding already secured and considering at least the following elements:(a)additional private sources of financing;(b)support through resources from the European Investment Bank Group or otherinternational financial institutions including the European Bank for Reconstruction
and Development;(c)existing Member State instruments and programmes, including from national
promotional banks, institutions and Export Credit Agencies;(d)16056/23
ANNEX

relevant Union funding and financing programmes.

VF/sk
COMPET.1

71

ENChapter III
CO2 injection capacity
Article 16
Union level objective of CO2 injection capacity
1.

An annual injection capacity of at least 50 million tonnes of CO2 shall be achieved by
2030, in storage sites located in the territory of the European Union, its exclusive economic
zones or on its continental shelf within the meaning of the United Nations Convention on
the Law of the Sea (UNCLOS) and which are not combined with Enhanced Hydrocarbon
Recovery (EHR).

2.

All storage sites shall be designed to operate for a minimum of five years and shall respect
the principles of fair and open access provided in a transparent and non-discriminatory
manner, as defined in Directive 2009/ 31/EC.
Article 17
Transparency of CO2 storage capacity data

1.

By 6 months from the entry into force of this Regulation, Member States shall:(a)make data on all areas where CO2 storage sites could be permitted on their territory,
including saline aquifers, publicly available, without prejudice to requirements
regarding the protection of confidential information;

16056/23
ANNEX

VF/sk
COMPET.1

72

EN

(b)

oblige entities which are or have been holders of an authorisation as defined in
Article 1, point 3, of Directive 94/22/EC of the European Parliament and of theCouncil44 on their territory to make publicly available all geological data relating to
production sites that have been decommissioned or whose decommissioning has
been notified to the competent authority, unless the entity has applied for an
exploration permit in accordance with Directive 2009/31/EC;(c)

for the purposes of point (a), the data shall include at least the information requested
in the Commission Notice on the Guidance to Member States for the update of the2021-2030 National Energy and Climate Plans.

2.

By six months from the entry into force of this Regulation and each year thereafter, each
Member State shall submit to the Commission a report describing:(a)

CO2 capture projects in progress and an estimation of the corresponding needs andplans for transport, injection and storage capacities;(b)

CO2 transport and storage projects in progress on its territory, including the status of
permitting under Directive 2009/31/EC, expected dates for Final Investment
Decision (FID) and entry into operation;(c)the national support measures that have or will be adopted to prompt projects
referred to in points (a) and (b), as well as measures relating to cross-bordertransportation of CO2.

3.

Where no CO2 storage projects are implemented in a Member State, it shall report on its
plans to facilitate the decarbonisation of industrial sectors or to develop cross-bordertransport of CO2.

44

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on theconditions for granting and using authorizations for the prospection, exploration andproduction of hydrocarbons (OJ L 164, 30.6.1994, p. 3).

16056/23
ANNEX

VF/sk
COMPET.1

73

EN

Article 18
Contribution of authorised oil and gas producers
1.

Each entity holding an authorisation as defined in Article 1, point 3, of Directive 94/22/EC
shall be subject to an individual contribution to the Union-wide target for available CO2
injection capacity set in Article 16. Those individual contributions shall be calculated prorata on the basis of each entity’s share in the Union’s crude oil and natural gas production
from 1 January 2020 to 31 December 2023 and shall consist of CO2 injection capacity in astorage site permitted in accordance with Directive 2009/31/EC on the geological storageof carbon dioxide and available to the market by 2030. Entities with crude oil and natural
gas production below a certain threshold as defined in accordance with a delegated act
pursuant to paragraph 7 shall be excluded from this calculation and shall not be subject to acontribution.

2.

Within three months of the entry into force of this Regulation, Member States shall,identify and report to the European Commission the entities referred to in paragraph 1 andtheir volumes in crude oil and natural gas production from 1 January 2020 to 31 December
2023.

3.

Following the receipt of the reports submitted pursuant to Article 17 (2), the Commission
after having consulted Member States and interested parties, shall specify the contributions
to the Union CO2 injection capacity objective by 2030 from entities referred to inparagraph 1.

4.

Within twelve months of the entry into force of the Regulation, the entities referred to inparagraph 1 shall submit to the Commission a plan detailing how they intend to meet theircontribution to Union CO2 injection capacity objective by 2030. Those plans shall:(a)confirm the entity's contribution, expressed in terms of targeted volume of new CO2
storage and injection capacity commissioned by 2030;(b)16056/23
ANNEX

specify the means and the milestones for reaching the targeted volume.

VF/sk
COMPET.1

74

EN

5.

To meet their targeted volumes of available injection capacity, entities referred to inparagraph 1 can do any of the following:(a)develop CO2 storage projects alone or in co-operation;(b)enter into agreements with other entities referred to in paragraph 1;(c)enter into agreements with third party storage project developers or investors to fulfil
their contribution.

6.

Two years after the entry into force of the Regulation and every year thereafter, the entities
referred to in paragraph 1 shall submit a report to the Commission detailing their progress
towards meeting their contribution. The Commission shall make these reports public.

6a.

By derogation, a Member State may request the Commission to exempt the entities
referred to in paragraph 1 from individual contribution in relation to the production
activities they have carried out on the territory of that Member State from 1 January 2020
to 31 December 2023, provided that:(a)the overall annual injection capacity of all storage sites operated by any entity having
received a storage permit within the meaning of Directive 2009/31/EC and having
reached a final investment decision located on the territory of the Member State
exceeds the sum of the individual contributions of the entities referred to inparagraph 1 in relation to the relevant production activities. The annual injection
capacities associated with these storage sites shall correspond to those mentioned in
the storage permits and in the final investment decisions and contribute to the Unionwide target for available CO2 injection capacity set in Article 16.

(b)

the application is submitted before the end of 2027.

Provided that the two above conditions are met, the Commission shall adopt a decision
exempting the entities concerned, referred to in paragraph 1, from their individual
contribution in relation to the production activities they have carried out on the territory of
the Member State submitting the request.

16056/23
ANNEX

VF/sk
COMPET.1

75

EN

Exempted entities may enter into agreements in accordance with paragraph 5, points (b)and (c) only in respect of any injection capacity exceeding the individual contribution fromwhich they are exempted and the sum of the individual contributions that has been
exempted.
One year after the exempting decision and every year thereafter, the Member State shallsubmit a report to the Commission detailing the progress of the exempted entities towards
meeting their contribution to the Union-wide target for available CO2 injection capacity set
in Article 16. The Commission shall make these reports public.
6b.

By 31 December 2028, the Commission shall assess on the basis of the reports under
Article 31(1)(b) and 31(7) the relationship between the demand for injection capacity fromCO2 capture projects in progress or planned to be operational by 2030 and the sum of theindividual contributions of the entities referred to in paragraph 1 in relation to the
production activities on the territory of a given Member State. In case of a substantial
imbalance, the Member State concerned may exceptionally ask the Commission for aderogation regarding the date by which the individual contributions are fulfilled.

7.

The Commission is empowered to adopt delegated acts in accordance with Article 32 to
supplement this Regulation concerning:(-a) The rules concerning the identification of entities subject to contribution inaccordance with paragraph 1, including the threshold below which entities are
exempt from contribution;(a)

The modalities in which agreements between entities referred to in paragraph 1 andinvestments in storage capacity held by third parties are taken into account to meettheir individual contribution under paragraph 5, points b and c;

16056/23
ANNEX

VF/sk
COMPET.1

76

EN

(b)

The content of the reports referred to in paragraph 6.(c) The conditions under which
the Commission may exempt entities from part of their individual contribution inaccordance with paragraph 6a.
Chapter IV
Access to markets
Article 19

Sustainability and resilience contribution in public procurement procedures
1.

For procurement procedures falling within the scope of Directives 2014/23/EU, 2014/24/EU or
2014/25/EU where contracts have strategic net-zero technology listed in Article 3b of thisRegulation as part of their subject matter, or in the case of works contracts including said
technology, contracting authorities and contracting entities shall apply minimum mandatory
requirements regarding environmental sustainability as defined in implementing acts referred to inparagraph 4.
This shall not preclude contracting authorities and contracting entities from using other minimum
requirements or award criteria in relation to environmental sustainability.

3.

The minimum mandatory requirements referred to in paragraph 1, where applicable shalltake the form of:(a)technical specifications or requirements within the meaning of Article 36 of
Directive 2014/23/EU, of paragraph 1 of Annex VII of Directive 2014/24/EU and of
Article 60 of Directive 2014/25/EU or(b)contract performance clauses within the meaning of Article 70 of Directive
2014/24/EU and of Article 87 of Directive 2014/25/EU and of the general principles
of Directive 2014/23/EU.

4.

The Commission shall adopt an implementing act specifying minimum requirements onenvironmental sustainability. When adopting this implementing act the following elements
shall at least be considered:

16056/23
ANNEX

VF/sk
COMPET.1

77

EN

(a)

the market situation at Union level of the relevant technologies,(b)

provisions regarding environmental sustainability set out in other Union legislativeand non-legislative acts applicable to procurements covered by the obligation set out
in paragraph 1,(c)the Union’s international commitments, including the GPA and other international
agreements of which the Union is bound.

This implementing act shall be adopted within 9 months after the entry into force of thisRegulation, in accordance with the examination procedure referred to in Article 34(3).
5.

The tender’s resilience contribution, shall be taken into account in the case of public
procurement procedures where contracts have strategic net-zero technology listed in
Article 3b of this Regulation as part of their subject matter, or in the case of work contracts
including said technology, and in the case of contracts awarded on the basis of aframework agreement where the estimated value of those agreements is equal to or above
the values set out in Article 8 of Directive 2014/23/EU, Article 4 of Directive 2014/24/EU
and Article 15 of Directive 2014/25/EU.
At the time of the call for competition or commencement of such a procedure, where theCommission has determined in accordance with Article 22 paragraph 2 that the proportionof a specific strategic net-zero technology or the specific components primarily used forthe production of those products originating in a third country accounts for more than 50%of the supply of that specific strategic net-zero technology or of those specific components
primarily used for the production of those products within the Union, contracting
authorities and contracting entities shall include the following conditions for the public
procurement procedures as referred to in paragraph 1:(a)an obligation not to supply more than 50 % of the value of the specific strategic net
zero technology referred to in this paragraph from the third country as determined by
the Commission;

16056/23
ANNEX

VF/sk
COMPET.1

78

EN

(b)

an obligation for the duration of the contract that main components of the strategic
net-zero technology referred to in this paragraph supplied or provided in theexecution of the contract represent no more than 50 % of the value of the main
components of the specific strategic net-zero technology referred to in thisparagraph, irrespective of whether such components are supplied or provided directlyby the successful tenderer or by a subcontractor from the third country as determinedby the Commission;(c)

to provide to the contracting authority or to the contracting entity upon their request
adequate evidence corresponding to point (a) or (b), at the latest upon completion of
the execution of the contract;(d)

to pay a proportionate charge, in the event of non-observance of the conditions
referred in point (a) or (b), of at least 5% of the value of the specific strategic netzero technologies of the contract referred to in this paragraph.

For contracts covered by the European Union’s Annex I to the GPA as well as by otherrelevant international agreements by which the Union is bound, contracting authorities andcontracting entities shall not apply the requirements of point (a) to (d) to economic
operators of sources of supply that are signatories to these agreements.
This shall not preclude contracting authorities and contracting entities from using
additional non price criteria.
6.

Contracting authorities and contracting entities may on an exceptional basis decide not toapply paragraphs 1, 2, 3 and 5 where:(a)the required net zero technology can only be supplied by a specific economic
operator and no reasonable alternative or substitute exists and the absence ofcompetition is not the result of an artificial narrowing down of the parameters of the
procurement;

16056/23
ANNEX

VF/sk
COMPET.1

79

EN

(b)

no suitable tenders or no suitable requests to participate have been submitted in
response to a previous public procurement procedure;(c)their application would oblige that contracting authority or contracting entity toacquire equipment having disproportionate costs, or technical characteristics
different from those of existing equipment, or would result in incompatibility or
technical difficulties in operation and maintenance.

Estimated cost differences above 20%, based on objective and transparent data, may bepresumed by contracting authorities and contracting entities to be disproportionate.
This provision shall be without prejudice to the possibility of excluding abnormally low
tenders under Article 69 of Directive 2014/24/EU and Article 84 of Directive 2014/25/EU.
Article 20
Auctions to deploy renewable energy sources
1.

When designing auctions for the deployment of energy from renewable sources, and where
technologies listed as a strategic net-zero technologies under this Regulation are allowed toparticipate, Member States shall include:(a)pre-qualification criteria related to responsible business conduct, cybersecurity anddata security and ability to deliver the project fully and on time;(b)

pre-qualification criteria different than those referred to in point (a) or award criteria
to assess the auction’s sustainability and resilience contribution as referred to inparagraph 1a.

This is without prejudice to Article 4 of Directive (EU) 2018/2001 and Articles 107 and108 the Treaty, and to the Union’s international obligations.

16056/23
ANNEX

VF/sk
COMPET.1

80

EN

1a.

The auctions’ sustainability and resilience contribution shall be based on the criterion set inpoint (a) and on at least one of the criteria laid down in points (b) to (d) which shall beobjective, transparent and non-discriminatory:(a)contribution to resilience, taking into account the proportion of the strategic net-zero
technologies or the specific components primarily used for the production of those
products that originate from a third country accounting for more than 50% of the
supply of that specific strategic net-zero technology within the Union;
For the purpose of point (a), the country of origin shall be determined in accordancewith Regulation (EU) No 952/2013 of the European Parliament and of the Council;(b)environmental sustainability going beyond the minimum requirements in applicablelegislation;(c)contribution to innovation by providing entirely new solutions or improving
comparable state-of-the-art solutions;(d)contribution to the energy system integration.

This shall not preclude Member States from using additional non-price criteria beyond
those listed in this paragraph 1a.
The Commission will adopt an implementing act further specifying the pre-qualification
and award criteria.
This implementing act shall be adopted within 9 months after the entry into force of thisRegulation in accordance with the examination procedure referred to in Article 34(3).

16056/23
ANNEX

VF/sk
COMPET.1

81

EN

2.

When applied as award criteria, Member States shall give to each of the criteria to assess
the auction’s sustainability and resilience contribution a minimum weight of 5% and a
combined weight between 15% and 30% of the award criteria. This is without prejudice ofthe possibility to give a higher weighting to the criteria referred to in paragraph 1a, points(b), (c) and (d), in accordance with any limit for non-price criteria set under State aid rules.

3.

Member States shall not be obliged to apply the considerations relating to the prequalification and award criteria defined in paragraph 1 where their application would resultin disproportionate costs. Estimated cost differences above 15%, based on objective andverifiable data, may be presumed by Member States to be disproportionate.

4.

Paragraphs 1 to 3 shall apply to at least 20% of the volume auctioned per year per Member
State. Upon entry into force of the implementing act as referred to in paragraph 5,
paragraphs 1 to 3 shall apply to the volume auctioned per year per Member State as
defined in the implementing act referred to in paragraph 5.

5.

By 31 December 2027and every two years thereafter, the Commission shall a adopt an
implementing act to determine the shares of the volume auctioned per year per Member
State to which paragraphs 1 to 3 shall apply , and to reduce the threshold of the estimatedcost differences referred to in paragraph 3. The determination of the share of the volume
auctioned shall be based on a comprehensive assessment on the application of resilienceand sustainability criteria for renewable energy auctions and their effect on the accelerated
deployment of renewable energy technologies.
The implementing act referred to in subparagraph 1 shall ensure adequate appropriate time
for implementation, ensuring at least 12 months after the entry into force of theimplementing act, in order to adjust national law and auctions design.

16056/23
ANNEX

VF/sk
COMPET.1

82

EN

6.

For calculating the volumes auctioned per year per Member State the following auctions
may be excluded:(a)

auctions for a specific technology where all auctions have been undersubscribed in
the previous 2 years;(b)
7.

auctions for installations with a maximum project size of 10 MW.

To facilitate implementation for all Member States, in particular for those with low volumeof auctions, Member States that have not launched more than 2 auctions per year during
the last 2 years, may compute the share of auctions to which the non price criteria apply
over the period of 2 years.
Article 21
Other forms of public intervention

1.

Without prejudice to Articles 107 and 108 of the Treaty and Article 4 of Directive
2018/200145 and in line with the Union’s international commitments, when deciding to set
up new schemes or to update existing schemes benefitting households, companies or
consumers which incentivise the purchase of strategic net-zero technology final products,
Member States, regional or local authorities, bodies governed by public law or associations
formed by one or more such authorities or one or more such bodies governed by publiclaw, shall design them in such a way as to promote the purchase by beneficiaries ofstrategic net-zero technology final products with a high sustainability and resilience
contribution as referred in Article 21(3a), by providing additional proportionate financial
compensation.

45

Directive 2018/2001 of the European Parliament and of the Council of 11 December 2018
on the promotion of the use of energy from renewable sources

16056/23
ANNEX

VF/sk
COMPET.1

83

EN

2.

The additional financial compensation granted by authorities in accordance withparagraph 1, due to the application of the criteria referred to in Article 21(3a) (a), (c) and(d) shall not exceed 5% of the cost of the net-zero technology final product for the
consumer.

3.

When designing and implementing a scheme falling under paragraph 1, the authority shallbase itself on an open, non-discriminatory and transparent process to assess the resilienceand sustainability contribution of available strategic net-zero technology final products on
the market. Any strategic net-zero technology final product shall be entitled to apply tojoin the scheme at any time. The authority shall specify a pass mark for strategic net-zero
technology final products to be eligible to the additional financial compensation under the
support scheme.

3a.

The sustainability and resilience contribution of other forms of public intervention shall bebased on the following criteria which shall be objective, transparent and nondiscriminatory:(a)contribution to resilience, taking into account the proportion of the strategic net-zero
technologies or the specific components primarily used for the production of those
products that originates from a third country that accounts for more than 50% of the
supply of that specific strategic net-zero technology within the Union;

and at least one of the following:(b)environmental sustainability going beyond the minimum requirements in applicablelegislation;(c)contribution to innovation by providing entirely new solutions or improving
comparable state-of-the-art solutions;(d)16056/23
ANNEX

contribution to the energy system integration.

VF/sk
COMPET.1

84

EN

This shall not preclude Member States from using additional non-price criteria beyond
those listed in this paragraph 3a.
For the purpose of point (a), the country of origin shall be determined in accordance with
Regulation (EU) No 952/2013 of the European Parliament and of the Council.
4.

Member States shall publish on a single free access website all information relating toschemes pursuant to Article 21(1) for each relevant strategic net-zero technology final
product.
Article 22
Coordination of access to markets initiatives

1.

The Commission shall provide guidance on the application of the criteria to assess theresilience and sustainability contribution of available products covered by the forms of
public intervention covered under articles 19, 20 and 21.

2.

For the assessment of the contribution to resilience, the Commission shall adopt an
implementing act providing for a list of each of the strategic net-zero technology final
products and their main components. The implementing act shall be adopted in accordancewith the examination procedure as referred to Article 34(3).
Based on the implementing act referred to in subparagraph 1, the Commission shallprovide updated information on the shares of the Union supply originating in different
third countries in the last year for which data is available for each of the strategic net-zero
technologies and their main components. The source of supply country of origin shall be
determined in accordance with Regulation (EU) 952/2013 of the European Parliament andof the Council.

16056/23
ANNEX

VF/sk
COMPET.1

85

EN

3.

The Net-Zero Europe Platform shall discuss measures carried out by Member States toimplement Articles 19 to 21 and exchange best practices, inter alia, as concerns thepractical use of criteria defining the sustainability and resilience contribution in public
procurement, or schemes incentivising the purchase of net-zero technology final products.
Chapter V
Enhancing skills for quality job creation
Article 23
European Net Zero Industry Academies

1.

Fully respecting the competence of Member States in the field of education and training,
the Commission may support, including through the provision of seed-funding, the launchof European Net Zero Industry Academies, which have as their objectives to:(a)develop, for voluntary use by Member States and education and training providers on
their territories, learning programmes, content and learning and training materials fortraining and education, such as on developing, producing, installing, commissioning,
operating, maintaining, repairing, ecodesigning, re-using and recycling net-zero
technologies, including also on raw materials, as well as to support the capacities ofpublic authorities, in particular, those competent to issue permits and authorisations
referred to in Chapter II and contracting authorities referred to in Chapter IV of thisRegulation;(b)promote the voluntary use of the learning programmes, content and materials by
education and training providers in the Member States;(b1) offer support to the education and training providers that use the learning
programmes, content and materials produced by the academies to strengthen thequality of the training offered;

16056/23
ANNEX

VF/sk
COMPET.1

86

EN

(c)

develop credentials, including, if appropriate, micro-credentials, for voluntary use by
Member States and education and training providers on their territories, in order tofacilitate the transparency of skills acquired and enhance the transferability between
jobs and the cross-border mobility of the workforce, and to promote matching with
relevant jobs through tools such as the European Employment Services (EURES)
network and EURAXESS as well as to identify that a learning programme orlearning content was developed by a European Net Zero Industry Academy.

2.

European Net Zero Industry Academies shall produce gender-balanced content, contributeto counter gender stereotypes and pay particular attention to the need to activate more
women and young people, who are not in education, employment or training, and older
persons and persons with disabilities for the labour market.
Article 24
Regulated professions in Net Zero Industries and recognition of professional qualifications

1.

By 31 December 2025 and every two years thereafter, Member States shall strive to
identify whether the learning programmes developed by the European net-zero industry
academies are equivalent to the specific qualifications required by the host Member State
to access regulated activities within the scope of a profession with particular interest for the
net-zero industry in that Member State.

16056/23
ANNEX

VF/sk
COMPET.1

87

EN

2.

If a Member State concludes that the learning programmes developed by the European
Net-Zero industry Academies are equivalent to the specific qualifications required by thehost Member State to access regulated activities within the scope of a profession withparticular interest for the net-zero industry, it shall make this public and easily accessible
online. In addition, it shall facilitate the recognition of credentials issued by education andtraining providers on the basis of the learning programmes developed by the academies,
under Directive 2005/36/EC of the European Parliament and of the Council46, whenever aholder of such a credential requests access to a regulated profession within the meaning of
Article 3(1)(a) of Directive 2005/36/EC, and of particular importance for the net-zeroindustry, by treating the credential as evidence of formal qualifications, according to the
Article 11 of the Directive 2005/36/EC.

3.

Where access to a profession of particular importance for the net-zero industry is regulated
within the meaning of Article 3(1)(a) of Directive 2005/36/EC, Member States arerecommended to work towards developing a common set of minimum knowledge, skills
and competences necessary for the pursuit of this specific profession with the purpose of
establishing a Common Training Framework as referred to in Article 49a (1) of Directive
2005/36/EC of the European Parliament and of the Council to enable automatic recognitionof qualifications. The Net Zero Industry Europe Platform may also submit suggestions as
referred to in Article 49a (3) of Directive 2005/36/EC.
Article 25
Net-Zero Europe Platform and skills

The Net-Zero Europe Platform referred to in Article 28 shall support and supplement the action of
the Member States, where feasible and avoiding disproportionate administrative burden for Member
States as well as respecting their competence, by advising and assisting the Commission andMember States, including competent authorities and contracting authorities referred to in Chapter II
and Chapter IV, through the following tasks:

46

Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on
the recognition of professional qualifications (OJ L 255, 30.9.2005, p. 22).

16056/23
ANNEX

VF/sk
COMPET.1

88

EN

(1)

assist the Commission in assessing, continuously monitoring and forecasting the demandand supply of a workforce with the skill sets needed in net-zero technologies, informing as
appropriate the activities of the European Net-Zero Industry Academies;(2)

monitor the activity of the European Net-Zero Industry Academies and foster synergies
with other national and Union skills initiatives and projects, strengthen and scale-up goodpractices and provide general oversight;(3)

assist the mobilisation of stakeholders including industry, social partners and education andtraining providers for the promotion of learning programs developed by the European NetZero Industry Academies;(4)

assist the uptake of learning credentials developed by the European Net-Zero Industry
Academies in the Member States to promote the identification of skills and the matching ofskills and jobs, inter alia by promoting the validity and acceptance of the credentials
throughout the labour market of the European Union;(5)

facilitate, where appropriate, the development of occupation profiles, for the voluntary use
by Member States, consisting of a common set of knowledge, skills and competences for
key professions in the net-zero technologies, drawing inter alia upon the learning
programmes developed by the European Net-Zero Industry Academies, and, whereappropriate, using the terminology provided by the European Skills, Competences,
Qualifications and Occupations (ESCO) classification to facilitate transparency andmobility between jobs and across internal market borders;(6)promote adequate working conditions in jobs in net-zero technology industries, theactivation of youth, women and seniors to the labour market for net-zero technology
industries, and the attraction of skilled workers from third countries, in accordance withnational competences, law and practice, and thereby achieve a more diverse workforce;

16056/23
ANNEX

VF/sk
COMPET.1

89

EN

(7)

facilitate closer coordination and the exchange of best practices between Member States toenhance the availability of skills in the net-zero technologies, including by contributing toUnion and Member States policies to attract new talents from third countries, inaccordance with national competences, law and practice. This shall be done in coordination
with the already existing structures of European cooperation in education and training;(8)

look for synergies with existing training or education programs, among others aiming atmatching programs with the needs of the European industry.
Chapter VI
Innovation
Article 26
Net-Zero regulatory sandboxes

1.

Member States may at their own initiative establish net-zero regulatory sandboxes,
allowing for the development, testing and validation of innovative net-zero technologies orother innovative technologies, in a controlled real-world environment for a limited time
before their placement on the market or putting into service.
Member States shall establish net-zero regulatory sandboxes in accordance with paragraph
1 at the request of any company, organisation or consortium developing innovative netzero technologies which fulfils the eligibility and selection criteria referred to in paragraph2(a) and which has been selected by the competent authorities following the selection
procedure referred to in paragraph 2(b).

16056/23
ANNEX

VF/sk
COMPET.1

90

EN

2.

The modalities and the conditions for the establishment and operation of the net-zero
regulatory sandboxes under this Regulation shall be adopted through implementing acts inaccordance with the examination procedure referred to in Article 34. The modalities andconditions shall support flexibility for national competent authorities to prioritise between
and deciding on approval of applications for Net-zero regulatory sandboxes. The
modalities and conditions shall foster innovation and regulatory learning and shallparticularly take into account the special circumstances and capacities of participating
SMEs, including start-ups. The implementing acts shall include common main principles
on the following issues:(a)eligibility and selection for participation in the net-zero regulatory sandboxes;(b)procedure for the application, participation, monitoring, exiting from and terminationof the net-zero regulatory sandboxes;(c)3.

the terms and conditions applicable to the participants.

The participation in the net-zero regulatory sandboxes shall not affect the supervisory andcorrective powers of the authorities supervising the sandbox. The testing, development andvalidation of innovative net-zero technologies or other innovative technologies shall takeplace under the supervision and support of the competent authorities. The competentauthorities shall exercise their supervisory powers in a flexible manner within the limits of
the relevant legislation, adapting existing regulatory practices and using their discretionary
powers when implementing and enforcing legal provisions to a specific net-zero regulatory
sandbox project, with the objective of removing barriers, alleviating regulatory burden,
reducing regulatory uncertainty, and supporting innovation in net-zero technologies orother innovative technologies.

16056/23
ANNEX

VF/sk
COMPET.1

91

EN

4.

Where relevant to achieve the objective of this article, the competent authorities shallconsider granting derogations or exemptions in national law to the extent allowed by therelevant Union law. The competent authorities shall ensure that the sandbox plan ensuresrespect for requirements of the Union law and key objectives and essential requirements ofnational legislation. Competent authorities shall make sure that any significant risks tohealth, safety or the environment identified during the development and testing ofinnovative net-zero technologies or other innovative technologies is publicly
communicated and results in immediate suspension of the development and testing processuntil such risk is mitigated. Where competent authorities consider that the proposed projectraises exceptional risks for the health and safety of workers, of the general population, orof the environment, in particular because it relates to testing, development or validation
involving particularly toxic substances, they shall only approve the sandbox plan once they
are satisfied that adequate safeguards have been put in place commensurate with the
exceptional risk identified.

6.

Participants in the net-zero regulatory sandbox shall remain liable under applicable Union
and Member States’ liability legislation for any material harm inflicted on third parties as aresult of the testing taking place in the regulatory sandbox.

7.

The duration of the net-zero regulatory sandbox may be extended through the sameprocedure upon agreement of the national competent authority.

16056/23
ANNEX

VF/sk
COMPET.1

92

EN

8.

The net-zero regulatory sandboxes shall be designed and implemented in such a way that,
where relevant, they facilitate cross-border cooperation between the national competentauthorities. Member States that have established net-zero regulatory sandboxes shallcoordinate their activities and cooperate within the framework of the Net-Zero Europe
Platform with the objectives of sharing relevant information with other Member States
within the Platform. The Platform may invite companies who have participated in a netzero regulatory sandbox to share their experience of the process. The Commission shall, on
the basis of information provided by the Platform, report annually on the results of theimplementation of regulatory sandboxes, including good practices, lessons learnt andrecommendations on their setup and, where relevant, on the application within theregulatory sandbox of this Regulation and other Union legislation in a manner adapted forthe purposes of the sandbox.
Article 27
Measures for small and medium-sized enterprises, including start-ups

1.

Member States shall undertake the following actions:(a)provide small and medium-sized enterprises, including start-ups, with priority accessto the Net-zero regulatory sandboxes to the extent that they fulfil the eligibility
conditions set in Article 26;(b)organise awareness raising activities about participation to the regulatory sandboxesby small and medium-sized enterprises, including start-ups;(c)where appropriate, establish a dedicated channel for communication with small andmedium-sized enterprises, including start-ups, to provide guidance and respond toqueries about the implementation of Article 26.

16056/23
ANNEX

VF/sk
COMPET.1

93

EN

2.

Member States shall take into account the specific interests and needs of small andmedium-sized enterprises, including start-ups, and provide adequate administrative support
to take part in the regulatory sandboxes. Without prejudice to the application of Articles
107 and 108 of the Treaty, Member States should inform small and medium-sizedenterprises, including start-ups, of available financial support to their activities in theregulatory sandboxes.
Chapter VII
Governance
Article 28
Establishment and tasks of the Net-Zero Europe Platform

1.

The Net-Zero Europe Platform (‘the Platform’) is established.

2.

The Platform shall perform the tasks set out in this Regulation.

3.

The Platform may advise and assist the Commission and Member States in relation to theiractions to reach the objectives outlined in Chapter I of this Regulation, taking into accountMember States’ national energy and climate plans submitted under Regulation (EU)2018/199947.

47

Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December
2018 on the Governance of the Energy Union and Climate Action, amending Regulations(EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council,
Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC
and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliamentand of the Council (Text with EEA relevance.), (OJ L 328, 21.12.2018, p. 1).

16056/23
ANNEX

VF/sk
COMPET.1

94

EN

4.

Members of the Net-Zero Platform may coordinate within the Platform on the Net-Zero
Industrial Partnerships to help promote the adoption of net-zero technologies globally andto support the role of Union industrial capabilities in paving the way for the global clean
energy transition, in line with the overall objectives of this Regulation stemming from
Article 1 of this Regulation. The Platform may periodically discuss, among other topics:(a)

how to improve cooperation along the net-zero value chain between the Union andthird countries;(b)

how to address non-tariff barriers to trade, such as through mutual recognition ofconformity assessment or commitments to avoid export restrictions;(c)which third countries could be prioritised for the conclusion of Net-Zero Industrial
Partnerships, taking into account the following:i)the potential contribution to security of supply, taking into account their
manufacturing capacity of net-zero technologies;ii)

whether there are existing cooperation agreements between a third country andthe Union;iii)

whether a third country's regulatory framework and its implementation ensuresthe monitoring, prevention and minimisation of environmental impacts, the useof socially responsible practices including respect of human and labour rights
and meaningful and equitable engagement with local communities, the use oftransparent business practices and the prevention of adverse impacts on theproper functioning of public administration and the rule of law;(d)

how to incentivise production in Europe, by addressing funding, regulatory
framework and investment and location guarantees.

This paragraph shall be without prejudice to the prerogatives of the Council in accordancewith the Treaties.

16056/23
ANNEX

VF/sk
COMPET.1

95

EN

5.

Member States shall support the Commission in the implementation of the cooperation
measures set out in the Net-Zero Industrial Partnership.
Article 29
Structure and functioning of the Net-Zero Europe Platform

1.

The Platform shall be composed of representatives of Member States and of theCommission. It shall be chaired by a representative of the Commission.

2.

Each Member State shall appoint a high-level representative to the Platform. Where
relevant as regards the function and expertise, a Member State may have more than one
representative in relation to different tasks related to the work of the Platform. Eachmember of the Platform shall have an alternate. Only Member States shall have voting
rights. Each Member State shall have only one vote regardless the number ofrepresentatives.

3.

On a proposal by the Commission, the Platform shall adopt its rules of procedure by asimple majority of its members.

4.

The Platform shall meet at regular intervals to ensure the effective performance of its tasks
specified in this Regulation. Where necessary, the Platform shall hold extraordinary
meetings at the reasoned request of the Commission or a Member State.

5.

The Commission shall assist the Platform by means of an executive secretariat thatprovides technical and logistic support.

6.

The Platform may establish standing or temporary sub-groups dealing with specificquestions and tasks related to this Regulation.

6a.

The Platform shall meet at least once a year in order to discuss the monitoring foreseen in
Article 31.

16056/23
ANNEX

VF/sk
COMPET.1

96

EN

7.

The Platform shall invite representatives of the European Parliament to attend, as
observers, its meetings, including of the standing or temporary sub-groups referred to inparagraph 6.

8.

Where appropriate, the Platform or the Commission may invite experts and other third
parties with specific expertise on the subject matter, including from industry andstakeholder organisations, to the Platform and sub-group meetings or to provide written
contributions, but without rights to participate in the decision making.

9.

The Platform shall take the necessary measures to ensure the safe handling and processingof confidential and commercially sensitive information.

10.

The Platform shall use its best endeavours to reach consensus.

11.

The Platform shall coordinate and cooperate with existing and relevant industrial alliances.
Article 30
Articulation with National Energy and Climate Plans

Member States shall take into consideration this Regulation when preparing their national energy
and climate plans and their updates, submitted pursuant to Articles 3, 9, and 14 of Regulation (EU)2018/1999, in particular as regards the dimension “research, innovation and competitiveness” of theEnergy Union, and in the submission of their biennial progress reports in accordance with Article
17 of that Regulation.

16056/23
ANNEX

VF/sk
COMPET.1

97

ENChapter VIII
Monitoring
Article 31
Monitoring
1.

The Commission shall monitor on an ongoing basis:(a)the Union’s progress with respect to the Union’s objectives referred to in Article 1, inparticular the supply risks of net zero technologies that would distort competition or
fragment the internal market, and the related impact of this Regulation;(aa) the Union’s progress with respect to the benchmark referred to in Article 9a;(ab) the volume of imports into its territory and exports outside of the Union’s territory ofstrategic net-zero technologies;(b)

the progress with respect to the Union level objective of CO2 injection capacity
referred to in Article 16 and to the related CO2 transport infrastructure.

2.

Member States and the national authorities they designate for this purpose shall collect andprovide data and other evidence required pursuant to paragraph 1, points (a), (aa), (ab) and(b). In particular, they shall collect and report every 4 years to the Commission data on:(-a) identified obstacles to trade of net zero technologies or in goods that use net zerotechnologies within the internal market;(a)developments in strategic net-zero technologies and market trends, as well as market
prices for the respective net-zero technologies, including information on auctions
about their frequency, awarding prices, and volume as relevant for Chapter IV;

16056/23
ANNEX

VF/sk
COMPET.1

98

EN

(b)

net-zero technology manufacturing capacity per strategic technology and per key
value chain component if listed in Annex X, as well as the manufacturing capacity of
future strategic net-zero projects that have reached final investment decisions;(ba) data on employment and skills for manufacturing in each strategic net-zero
technology sector, including the number of employees, labour and skills shortages,
where applicable, and figures on labour and skills needs to fulfil the objectives of thisRegulation;(d)the following information related to permit-granting processes per strategic net-zero
technology:i.

the number of permit-granting processes initiated, the number of applications
refused, and the number of comprehensive decisions taken and specifying whether
they approved or refused the project;ii.

the duration of the permit-granting processes where a comprehensive decision was
taken, including duration of extensions of the time limits;iii.

information on the resources allocated to the operation of the designated contact
point(s);(g)

the number and nature of the sandboxes set up within the past 12 months;(h)the amount of CO2 stored permanently underground in accordance with Directive
2009/31/EC.

3a.

The data referred to in paragraph 2 shall be reported where they are not already included in
or in accordance with the elements of the reporting notified to the Commission pursuant to
Articles 17 and 25 of Regulation 2018/1999.

16056/23
ANNEX

VF/sk
COMPET.1

99

EN

3b.

The reporting obligations referred to in paragraph 2 shall not apply where Member Statesconsider that it would be contrary to their essential security interests in accordance with
Article 346 of the Treaty of the Functioning of the European Union.

4.

The first report shall be sent to the Commission by each Member State at the end of May
of the year following the date of entry into force of this Regulation. The following reports
shall be sent by the end of May every year.

4a.

The Commission is empowered to adopt implementing acts in accordance with Article
34(3) setting out a template for the reports referred to in paragraph 4.

6.

On the basis of the reports submitted pursuant to paragraph 2 of this Article, theCommission shall monitor the Union’s progress referred to paragraph 1, point (a) andpublish related recommendations on an annual basis as part of the Annual Reports on
Competitiveness of Clean Energy Technologies, pursuant to Article 35 (2), point (m) ofRegulation (EU) 2018/1999. The recommendations shall also include considerations onwhether all the net-zero technologies necessary to achieve the objectives in Article 1 arecovered by the Regulation.

7.

On the basis of the draft permit applications submitted pursuant to Article 10 of the
Directive 2009/31/EC and on the reports submitted pursuant to Articles 17(2) and Article
18(4) and 18(6) of this Regulation, the Commission shall monitor the progress towards
reaching the Union-wide target for CO2 injection capacity referred to paragraph 1 point (b)of this Article and shall report annually to the European Parliament and the Council.

8.

The Commission shall inform the Net-Zero Europe Platform on its findings.

16056/23
ANNEX

VF/sk
COMPET.1

100

ENChapter IX
Final provisions
Article 32
Delegation of power
The Commission is empowered to adopt delegated acts in accordance with Article 33 to amend themodalities in which agreements between entities referred to in Article 18(1) and investments instorage capacity held by third parties are taken into account to meet their individual contribution set
out in Article 18 (5), as well as the content of the reports referred to in Article 18 (6).
Article 33
Exercise of the delegation
1.

The power to adopt delegated acts is conferred on the Commission subject to theconditions laid down in this Article.

2.

The power to adopt delegated acts referred to in Article 32 shall be conferred on theCommission for a period of five years from [date of application]. The Commission shallpresent a report in respect of the delegation of power not later than nine months before theend of the five-year period. The delegation of power shall be tacitly extended for periods ofan identical duration, unless the European Parliament or the Council opposes suchextension not later than three months before the end of each period.

3.

The delegation of power referred to in Article 32 may be revoked at any time by theEuropean Parliament or by the Council. A decision to revoke shall put an end to thedelegation of the power specified in that decision. It shall take effect on the day following
the publication of the decision in the Official Journal of the European Union or at a later
date specified therein. It shall not affect the validity of any delegated acts already in force.

16056/23
ANNEX

VF/sk
COMPET.1

101

EN

4.

Before adopting a delegated act, the Commission shall consult experts designated by each
Member State in accordance with the principles laid down in the Interinstitutional
Agreement of 13 April 2016 on Better Law-Making.

5.

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to theEuropean Parliament and to the Council.

6.

A delegated act adopted pursuant to Article 32 shall enter into force only if no objection
has been expressed either by the European Parliament or by the Council within a period of
two months of notification of that act to the European Parliament and the Council or if,
before the expiry of that period, the European Parliament and the Council have bothinformed the Commission that they will not object. That period shall be extended by twomonths at the initiative of the European Parliament or of the Council.
Article 34
Committee procedure

1.

The Commission shall be assisted by a committee. That committee shall be a committee
within the meaning of Regulation (EU) No 182/2011.
For matters related to Article 19 the Commission shall be assisted by the Advisory
Committee on Public Procurement established by Council Decision 71/306/EEC.
For matters related to Article 20 the Commission shall be assisted by the Energy Union
Committee established by Article 44 of Regulation (EU) 2018/1999.

2.

Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shallapply.

16056/23
ANNEX

VF/sk
COMPET.1

102

EN

3.

Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shallapply.

4.

Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in
conjunction with Article 4 thereof, shall apply.
Article 35
Evaluation

1.

By…[5 years after the date of application of this Regulation], and every 5 years thereafter,
the Commission shall evaluate this Regulation and present a report on the main findings to
the European Parliament, the Council and the European Economic and Social Committee.

2.

The evaluation shall assess:(a)whether the objectives of this Regulation as established in Article 1, , in particular its
contribution to the functioning of the Single Market, have been achieved and its
impact on business users, especially SMEs, and end users, and the European Green
Deal objectives;(b)whether provisions in the Net Zero Industry Act are fit to deliver beyond 2030 andtowards the longer term 2050 climate neutrality target referred to in Article 1, taking
into account, among other aspects, the possibility to include in the Net Zero Industry
Act other technologies that can play a significant role in achieving climate neutrality
by 2050, as well as the possible enlargement of the scope of this Regulation to cover
the construction or conversion of plants and facilities in hard-to-abate sectors to
climate neutral processes where the construction or conversion of the respectiveplants and facilities reduce emission rates of CO2-eq of industrial processes
significantly and permanently to an extent which is technically feasible.

16056/23
ANNEX

VF/sk
COMPET.1

103

EN

3.

The evaluation shall take into account the result of the monitoring process as outlined in
Article 31 as well as the technology needs stemming from the updates of the National
Energy and Climate Plans notified by Member States in accordance with the [Energy
Union Governance Regulation] and informed by the State of the Energy Union Report.

3a.

Within the same period referred to in paragraph 1 at the latest and after consultation with
the Net-Zero Europe Platform, the Commission shall assess and, if necessary, present a
proposal to expand the list of net-zero technologies set in Article 3a and the list of strategic
net-zero technologies set in Article 3b.

4.

The competent authorities of the Member States shall provide to the Commission any
relevant information they have and that the Commission may require to draw up the reportreferred to in paragraph 1.

5.

Where, based on the report referred to in paragraph 1, the Commission concludes that theUnion is likely not to achieve the objectives set out in Article 1(1), it shall, in consultation
with the Net-Zero Europe Platform, assess the feasibility and proportionality of proposing
measures in order to ensure the achievement of those objectives.

6.

No later than 31 December 2026, the Commission may propose an amendment to thisRegulation to introduce a new Union-level objective for CO2 injection capacity by 2040.
The Commission shall justify its choice to the European Parliament and the Council if it
decides not to propose to introduce an objective for 2040.
Article 36
Treatment of confidential information

1.

Information acquired in the course of implementing this Regulation shall be used only forthe purposes of this Regulation and shall be protected by the relevant Union and national
legislation.

16056/23
ANNEX

VF/sk
COMPET.1

104

EN

2.

Member States and the Commission shall ensure the protection of trade and businesssecrets and other sensitive, confidential and classified information acquired and generated
in application of this Regulation, including recommendations and measures to be taken, in
accordance with Union and the respective national law.

3.

Member States and the Commission shall ensure that classified information provided or
exchanged under this Regulation is not downgraded or declassified without the priorwritten consent of the originator in accordance with relevant national or Union law.

4.

If a Member State assesses that the presentation of aggregated information in the context ofArticle 18 may nonetheless compromise its national security interest, it may object to theCommission’s presentation through a justified notice.

5.

The Commission and the national authorities, their officials, employees and other persons
working under the supervision of these authorities shall ensure the confidentiality of
information obtained in carrying out their tasks and activities in accordance with relevant
national or Union law. This obligation also applies to all representatives of Member
States, observers, experts and other participants attending meetings of the Platform
pursuant to Article 29.
Article 37
Amendment to Regulation (EU) 2018/1724

Regulation (EU) 2018/1724 is amended as follows:(1)

in Annex I, in the first column, a new row ‘R. Net-zero technology manufacturing projects’is added.

(2)

in Annex I, in the second column, in the row ‘R. Net-zero technology manufacturing
projects’, the following point are added:‘1. information on the permit-granting process’

16056/23
ANNEX

VF/sk
COMPET.1

105

EN‘2. financing and investment services’‘3. funding possibilities at Union or Member State level’‘4. business support services, including but not limited to corporate tax declaration, local
tax laws, labour law’.
(3)

in Annex II, in the first column, a new row ‘Net-zero technology manufacturing projects’is added.

(4)in Annex II, in the second column, in the row ‘Net-Zero technology manufacturing
projects’, the following points are added:‘Procedures for all relevant permits to, build, expand, repurpose and operate net-zero
technology manufacturing projects, including for net-zero strategic projects encompassing
all applications and procedures’.

(5)

in Annex II, in the third column, in the row ‘Net-Zero manufacturing projects’, thefollowing point is added:‘All outputs pertaining to the procedures ranging from the acknowledgment of the validityof that the application is complete to the notification of the comprehensive decision on theoutcome of the procedure by the designated contact point responsible national’.

(6)in Annex III, the following point is added:‘(8) Designated contact point acting as single point of contact pursuant to Article 4 of [theNZIA] Regulation.’

16056/23
ANNEX

VF/sk
COMPET.1

106

EN

Article 38
Entry into force and application
This Regulation shall enter into force on…[the day following that of its publication in the Official
Journal of the European Union].
It shall apply from [date of entry into force].
Until [2 years following the date of application of this Regulation], Article 19 (1) (2), point (a), (b)and (c) shall apply only to contracts concluded by central purchasing bodies as defined in Article 2(1), point (16), of Directive 2014/24/EU and Article 2 (1), point (12), of Directive 2014/25/EU andfor contracts of a value equal to or higher than EUR 25 million.
Articles 20 and 21 shall apply from [24 months after the date of application of this Regulation].
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament

For the Council

The President

The President

16056/23
ANNEX

VF/sk
COMPET.1

107

EN

ANNEX X
Non-exhaustive list of final products and specific components considered as primarily used
for the production of Net-Zero technologies
Strategic net-zero

Components "primarily used" for these technologies

technologies
Solar photovoltaics

Solar PV module
Solar PV Cells
Silicon Wafers
Solar PV inverter

1. Solar photovoltaic and solar thermal technologies

Solar PV glass
Components related to balance of plant

Solar Thermal

Solar thermal panels
Concentrated solar plant
Solar thermal Mirrors
Solar thermal Lenses
Tower (for molten salt)
Heat exchanger
Heat transfer fluid
Heat engine (steam turbine)
Power generator

16056/23
ANNEX

VF/sk
COMPET.1

108

EN

Wind

Blades
Nacelle structure
Permanent magnets
Gearbox
Shafts

2. Onshore wind and offshore renewable technologies

Power generator
Controller
Bearings
Tower
Components related to balance of plant

Wave energy

Surface floaters
Vertical column
Reaction plates
Mounting for Power Take-Off systems
Mooring/foundation system
Generator
Hydraulic system
Frequency converter

16056/23
ANNEX

VF/sk
COMPET.1

109

EN

Transformer
Control system

Tidal energy

Pile
Cross-armNacellesTidal kites
PTO mounting
Mooring/foundation system
Generator
GearboxDriveshaft
Hydraulic system
Frequency converter
Transformer
Control system
Rotors

3. Battery/Storage technologies

Battery

AnodesCathodesElectrolytes
Separators
Cell
Modules
Packs

16056/23
ANNEX

VF/sk
COMPET.1

110

EN

Battery management systems

Storage technologies

Heat storage
Gravitational storage
Pressure storage
Kinetic storage
ValvesElectronic control equipment
Pumps
Heat exchangers
Tanks
Receiver tubes
Molten salts

16056/23
ANNEX

VF/sk
COMPET.1

111

EN

Heat pumps

Heat pump
Evaporator
Condensor
Compressor

4. Heat pumps and geothermal energy technologies

Powder coating
Heat exchanger
ValvesPumps
Fans(Synthetic) Refrigerants

Geothermal

Circulation pumps
Heat extraction equipment
Steam turbines
Turbo expanders

16056/23
ANNEX

VF/sk
COMPET.1

112

EN

Electrolysers

AnodesElectrolysers
CathodesCatalysts
Membranes
Electrolytes
Bipolar platesCompressors

5. Electrolysers and fuel cells

Water purification systems
DryersGDL (gas diffusion layers)
MEA (membrane electrode assembly)
Components related to balance of plant
Fuel cells

Membrane Electrode Assembly
Membrane
Gas diffusion
AnodesCathodesElectrolytes
Catalysts
Bipolar plates

16056/23
ANNEX

VF/sk
COMPET.1

113

EN

Cell sealants

biogas/biomethane

technologies

biogas/biomethane

6. Sustainable

Sustainable
technologies

Membranes
Electronic components
Digesters/Fermentation tanks
Corrosion-resistant materials and liners

CCS technologies

Point-source capture equipment
Solid adsorbents

7. CCS technologies

Aqueous basic solutions
Membranes
Compression equipment
Pipelines
CO2 shipping equipment or vehicles
Injection equipment

16056/23
ANNEX

VF/sk
COMPET.1

114

EN

(Electricity) Grid
technologies

Conductors, cables, towers, poles, insulators
SCADA/Energy management systems
Transformers (power and measurement)

8. (Electricity) grid technologies

Automation equipment for substations
Switchgears
Capacity banks, bus bars
Battery management systems
Electronic boards
Power electronics components and equipment,
including DC technology
Control and communications components (GPRS
modules, programmable logic controllers (PLCs) andother specific control systems, sensors)

16056/23
ANNEX

VF/sk
COMPET.1

115

EN