Debate: Framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem
Date: THURSDAY, 25 APRIL 2024
Speaker: Virginijus Sinkevičius
Language: EN

So I would like to start by congratulating all of you, the European Parliament and in particular Committee on Industry, Research and Energy for having been able to negotiate and reach an agreement with the Council within such a short time frame. It shows how convinced we all are that the EU needs to remain a major producer of net-zero technologies. This is a prerequisite for reaping the benefits of the ongoing energy transition, for remaining competitive and for avoiding to replace a dependency on fossil fuels by a dependency on net-zero technologies. With this regulation we will help speed up clean industrial production in Europe in a way that no other EU instrument has done before. Take, for example, the benchmark that we set for our net-zero-technology manufacturing capacities: at least 40% of the Union’s annual deployment needs by 2030. The Parliament has played an important role in maintaining this very high ambition. The final text reflects this also, by requiring that the Union’s share for net-zero manufacturing is increased to reach 15% of world production by 2040. Another crucial element secured and improved by the Parliament is the annual 50-million-tonne CO2 storage target by 2030. It can now be supported through full CO2 value-chain projects for new industrial climate solutions for hard-to-abate emissions. With the Net Zero Industry Act we will have the first legal building block for the EU’s industrial carbon management strategy we recently adopted. Another important element concerns the scope of application. The Net Zero Industry Act, in its final form, will now focus on the entire supply chain, meaning that important industrial decarbonisation projects in energy-intensive sectors will also be eligible. Now we have to set this framework into motion and we have to do it fast. Let me reassure you that a quick and true implementation of the Net Zero Act remains a top priority for the Commission. Preparatory work is already ongoing across several work-streams, pending the entry into force of the regulation. Among the most immediate deliverables is the launch of the Net-Zero Europe platform. The platform is important to create a governance structure that oversees implementation. Member States, Commission and industry will work closely together with the Parliament as an observer to make sure that we are on course. As part of this governance structure, we will also set up an industry group to ensure continuous feedback from all net-zero sectors, as well as a net-zero regulatory burden scientific advisory group. We need to make sure that the work starts as soon as possible, and that we deliver on the promise to reduce administrative burden for all industrial activities in the framework of this Act. The Commission is also pleased with the Act’s focus on the strategic energy technology plan, which was important to the Parliament. We are already getting a full swing, making sure that the bridge between innovation and manufacturing is reinforced. We are also working on a system for granting strategic project status from July onwards. Net-zero projects will also be able to apply for this important status, and it will give them priority at national level, with faster permitting. We will give particular attention to these projects through the Net-Zero Europe platform also with regards to their financing. The Commission is also already preparing the implementation to the public procurement and renewable energy auctions provisions. In that sense, the chapter on access to markets is a fundamental step forward in our resilience-based and sustainable approach. We have no time to lose to start applying such provisions. In view of this, the Commission has also already started the necessary work on the related implementing and delegated acts. Some Member States have also already started applying this logic in national support schemes, which the Commission very much welcomes. With regard to the lack of skilled workers and acute bottleneck in the upscaling of our manufacturing capacities, the Commission is already preparing the launch of the first European net-zero industry academies. Finally, in order to carry the political momentum forward, the Commission decided to organise a high-level event dedicated to the Net-Zero Europe platform. It will take place ahead of the Compete Council on 23 May 2024.