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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)

ENVI-AD-753533

Committee on the Environment, Public Health and Food Safety · Rapporteur: Tiemo Wölken

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The committee opinion amends the proposed Net Zero Industry Act to strengthen environmental safeguards, raise CO2 storage targets, and expand the scope of net-zero technologies.

Committee position. The Committee on the Environment, Public Health and Food Safety proposes amendments to strengthen the Net Zero Industry Act, including higher CO2 storage targets, broader technology scope, and enhanced environmental safeguards.

Key points

  1. Expands the definition of net-zero technologies to include carbon capture, utilisation, and storage, clean energy from innovative water technologies, and e-fuels.
  2. Raises the 2030 CO2 injection capacity target from 50 to 60 million tonnes annually, with priority for unavoidable industrial process emissions.
  3. Requires the Commission to conduct adequacy assessments and adapt the CO2 storage target, potentially making it binding.
  4. Obliges economic operators selling fossil fuels in the EU to contribute to CO2 storage capacity pro-rata to their emissions.
  5. Calls for a legislative proposal to establish a regulatory framework for a Union-wide CO2 capture, storage, and transport market.
  6. Shortens time limits for environmental impact assessments and public consultations, with extensions only in exceptional cases.
  7. Requires that CO2 storage projects do not store emissions from fossil fuel sales and must prioritise unavoidable industrial emissions.
  8. Mandates that Member States aim to allocate at least 25% of EU ETS revenues to support the regulation's objectives.
  9. Adds criteria for net-zero strategic projects, including alignment with the 'Do No Significant Harm' principle and circularity.
  10. Requires public reporting and monitoring of progress, including on CO2 storage capacity and environmental impacts.

Who is affected

  • Economic operators selling petroleum products, natural gas, or coal in the EU must contribute to CO2 storage capacity.
  • Project promoters of net-zero technology manufacturing projects face shorter permitting deadlines.
  • Member States must report on EU ETS revenue allocation and ensure adequate administrative capacity.
  • CO2 storage projects must prioritise unavoidable industrial process emissions and avoid storing emissions from fossil fuel sales.

Figures and deadlines

  • 60 million tonnes of annual CO2 injection capacity by 2030.
  • At least 25% of national EU ETS revenues to support the regulation's objectives.
  • 20 days for scoping opinion, 80 days for reasoned conclusion, 80 days for public consultation.
  • Maximum 30 days extension for environmental assessments.
  • Minimum 60% of output for 'primarily used' components.
  • At least 40% manufacturing benchmark by 2030, with increases for technologies already above 30%.