Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 12

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 4
Chunk 12
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 passing
of these provisions is expected to further accelerate the adoption of light control technologies within architectural markets. Following
the passing of the Dynamic Glass Act, the American Clean Power Association released a report stating that, as of July 31, 2023, $270
billion in capital investment had been announced for utility-scale clean energy projects and manufacturing facilities, which is equivalent
to eight years’ worth of American clean energy investment, surpassing total investment into U. S. clean power projects commissioned
between 2015 and 2022.

In the European Union, at
least 30% of the NextGenerationEU Recovery Plan, which was added to the European Union’s 2021-2027 long-term budget, has been
earmarked for tackling climate change and supporting environmentally-friendly projects. In 2020, the European Commission also established
a framework for the European Green Deal such that the European Commission has set out to make Europe climate-neutral by 2050, which also
sets the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. Additionally,
in October 2023, the Council of the European Union adopted the new Renewable Energy Directive to raise the share of renewable energy
in the EU’s overall energy consumption to 42.5% by 2030 with an additional 2.5% indicative top-up to allow the target of 45% to
be achieved.

Advanced light control technologies
can generally be classified into two basic types: (1) “passive” technologies, where the change in glass transparency
is a reaction to ambient conditions such as heat or light in the surrounding environment, and (2) “active” technologies,
which are controlled by the user when an electrical current is applied.

The two main types of passive
light control technologies are photochromic and thermochromic. They are primarily based on thin film dyes whose molecular structure changes
in response to a change in the level of UV radiation or heat, causing the glass to block the passage of light. Photochromic technologies
are primarily used in eyeglasses and are not considered to have broader commercial applications for smart glass solutions due to their
slow response time and poor functionality at the high and low ends of the temperature range. Photochromic glass also performs poorly
in vehicles or other enclosed settings where existing glass blocks incoming UV light, which is required for photochromic glass to operate.

Thermochromic technologies
on the