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OPINION (COM(2023)0161 – C90062/2023 – 2023/0081(COD))

On the 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)

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Committee on Economic and Monetary Affairs · Rapporteur: Luděk Niedermayer

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The committee opinion amends the proposed Net Zero Industry Act to stress the need for a coordinated EU industrial policy, private investment, and safeguards against market fragmentation and subsidy races. It calls for excluding tax-haven-linked companies from public procurement and State aid, and for monitoring business cases and coordinating public funding. It raises the weight for sustainability and resilience in procurement awards to 20-45% and the cost-difference threshold to 30%. It requires support to net-zero strategic projects within six months and encourages using ETS revenues for climate goals.

Committee position. The Committee on Economic and Monetary Affairs proposes amendments to the Net Zero Industry Act to strengthen coordination, promote private investment, and adjust procurement rules.

Key points

  1. Calls for an active state role in industrial policy to enable energy and digital transitions while preserving competitiveness and jobs.
  2. Stresses the need for coherence between EU laws and an area-oriented approach with flexibility for national situations.
  3. Warns that uncoordinated national measures could distort competition and fragment the Single Market; a common framework should not lead to fragmentation.
  4. Encourages mobilising private investments and using public funds only when needed; State aid should be targeted, temporary, and aligned with EU objectives.
  5. Supports cross-border net-zero projects and cooperation to achieve objectives cost-efficiently.
  6. Excludes companies linked to tax havens from public procurement and State aid.
  7. Calls for permanent monitoring of the business case for essential investments to ensure policy triggers desired activity.
  8. Urges the Commission to coordinate national tax breaks and credits to ensure a level playing field.
  9. Requires that support schemes for households be simple and not impose disproportionate administrative burdens.
  10. Sets the sustainability and resilience weight in procurement at 20-45% and cost-difference threshold at 30%.
  11. Mandates support to net-zero strategic projects within six months of request and encourages using ETS revenues for climate purposes.

Who is affected

  • Contracting authorities and entities awarding public contracts for net-zero technologies.
  • Companies with links to tax havens: excluded from public procurement and State aid.
  • Project promoters of net-zero strategic projects: entitled to support within six months.
  • Member States: encouraged to use ETS revenues for climate goals and to coordinate tax policies.

Figures and deadlines

  • Weight for sustainability and resilience contribution: between 20% and 45% of award criteria.
  • Cost differences above 30% may be presumed disproportionate.
  • Support to project promoters to be provided within six months following request.
  • Investment needs: around EUR 92 billion for 2023-2030, range EUR 52-119 billion; public funding EUR 16-18 billion.