Net Zero Industry Act published in the Official Journal of the EU

Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724 (usually referred to as the “Net Zero Industry Act” or “NZIA”) was published in the Official Journal of the EU on 28 June 2024. 

This publication concludes the legislative process for the main parts of the Green Deal Industrial Plan proposed by the European Commission in March 2023 aiming to keep pace with the clean tech race triggered by the US Inflation Reduction Act (for more information on the proposal, see our blog post). The other components of the Green Deal Industrial Plan include the Critical Raw Materials Act, which was published on 3 May 2024 (see our client briefing), and the electricity market design reform (the Regulation and Directive were published on 26 June 2024).

The NZIA aims for the EU to produce 40% of its net-zero technology locally by 2030. It facilitates investment in such technologies by simplifying permitting procedures and prioritising strategic projects, among other measures. The NZIA also introduces non-price criteria (resilience and sustainability) into standard public procurement rules, aiming to exclude offers that rely too heavily on a single non-EU supplier. For more details, see our previous blog post. 

The NZIA entered into force on 29 June 2024, with most of its provisions applying from this date.