Sittings · Document

OPINION (COM(2023)0161 – C90062/2023 – 2023/0081(COD)) 2023-07-20

On the proposal for a regulation of the European Parliament and of the Council Establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act)

Committee on International Trade · Rapporteur: Inma RodríguezPiñero

AMENDMENTS

The Committee on International Trade calls on the Committee on Industry, Research and Energy, as the committee responsible, to take the following into account:

Amendment 1

Proposal for a regulation

Recital 2 a (new)

Text proposed by the Commission	Amendment
	(2 a) The net-zero industry globally is growing at an increasing rate, to the extent that demand is sometimes outpacing supply. Considering the scale at which the global market for key mass-manufactured clean energy technologies is expanding, as well as the Union's position as the world’s largest trader of manufactured goods and services, the provisions of this Act should be pursued in a manner that allow European industry to specialise in net-zero technologies, innovations, and services in which they have a comparative advantage and to capture a significant global market share. The Union can deliver prosperity for Union citizens only if it is competitive on and open to the global market.

Amendment 2

Proposal for a regulation

Recital 3

Text proposed by the Commission	Amendment
(3) Regarding external aspects, in particular regarding emerging markets and developing economies, the EU will seek win-win partnerships in the framework of its Global Gateway strategy, which contribute to the diversification of its raw materials supply chain as well as to partner countries’ efforts to pursue twin transition and develop local value addition.	(3) Trade diversification is a key factor in enhancing supply chain resilience, in order to avoid disruption of the supply of clean energy technologies and their components. Regarding external aspects, given the complexity and transnational character of net-zero technologies and their supply chains, timely and relevant EU trade and investment agreements will play a key role in providing stable and diversified supply chains to contribute to the net-zero manufacturing technology goal. To this end, open and functional global value chains and protecting the open and rules-based global trading system, will be essential to the net-zero industry transition. The EU trade policy both multilaterally in the framework of the WTO, and bilaterally with EU’s third country partners, should help to achieve environmental goals and fight against climate change, as well as to contribute to achieving the Sustainable Development Goals. The EU should also include comprehensive raw material chapters in future trade agreements, complemented by instruments of cooperative industrialisation committed to sustainability principles. In particular regarding emerging markets and developing economies, the EU will seek win-win partnerships in the framework of its Global Gateway strategy, which should contribute, under public scrutiny and providing for full transparency, to the diversification of its raw materials supply chain as well as to partner countries’ efforts to pursue twin transition and develop local value addition. These partnerships could be complemented by ambitious trade and investments agreements, international partnerships concerning net-zero technologies or the Cleantech Alliance and could accelerate the net-zero transition across industries.

Amendment 3

Proposal for a regulation

Recital 3 a (new)

Text proposed by the Commission	Amendment
	(3 a) In particular regarding emerging markets and developing economies, the EU will seek win-win partnerships in the framework of its Global Gateway strategy, which contribute to the diversification of its raw materials supply chain as well as to partner countries’ efforts to pursue twin transition and develop local value addition.

Amendment 4

Proposal for a regulation

Recital 3 b (new)

Text proposed by the Commission	Amendment
	(3 b) The Union should aim to enhance cooperation on trade, research and production of net-zero technologies with like-minded and reliable partners through bilateral cooperation and joint efforts to enhance the multilateral trading system.

Amendment 5

Proposal for a regulation

Recital 4

Text proposed by the Commission	Amendment
(4) To fulfil those commitments, the Union must accelerate its pace of transition to clean energy, notably by increasing energy efficiency and the share of renewable energy sources. This will contribute to achieving the EU targets of the European Pillar of Social Rights Action Plan for 2030 of an employment rate of at least 78% and participation in training of at least 60% of adults. It will also contribute to ensuring that the green transition is fair and equitable34 .	(4) To fulfil those commitments, the Union must accelerate its pace of transition to clean energy, notably by increasing energy efficiency and the share of renewable energy sources, while ensuring that this transformation remains inclusive and balanced. Noting the potential of the net-zero transition for increasing employment in the energy and renovation sector, through upskilling and reskilling, this transition will contribute to achieving the EU targets of the European Pillar of Social Rights Action Plan for 2030 of an employment rate of at least 78% and participation in training of at least 60% of adults. It will also contribute to ensuring that the green transition is fair and equitable34.
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34 Council Recommendation on ensuring a fair transition towards climate neutrality, adopted on 16 June 2022 as part of the Fit for 55 package.	34 Council Recommendation on ensuring a fair transition towards climate neutrality, adopted on 16 June 2022 as part of the Fit for 55 package.

Amendment 6

Proposal for a regulation

Recital 5

Text proposed by the Commission	Amendment
(5) The higher energy prices after the unjustified and unlawful military aggression by the Russian Federation against Ukraine, gave a strong impetus to accelerate the implementation of the European Green Deal and reinforce the resilience of the Energy Union by speeding up the clean energy transition and ending any dependence on fossil fuels exported from the Russian Federation. The REPowerEU plan35 plays a key role in responding to the hardships and global energy market disruption caused by the invasion of Ukraine by the Russian Federation. That plan aims to accelerate the energy transition in the European Union, in order to reduce the Union’s gas and electricity consumption and to boost investments in the deployment of energy efficient and low carbon solutions. That plan sets inter alia the targets to double solar photovoltaic capacity by 2025 and to install 600 GW of solar photovoltaic capacity by 2030; to double the rate of deployment of heat pumps; to produce 10 million tonnes of domestic renewable hydrogen by 2030; and to substantially increase production of biomethane. The plan also sets out that achieving the REPowerEU goals will require diversifying the supply of low carbon energy equipment and of critical raw materials, reducing sectoral dependencies, overcoming supply chain bottlenecks and expanding the Union’s clean energy technology manufacturing capacity. As part of its efforts to increase the share of renewable energy in power generation, industry, buildings and transport, the Commission proposes to increase the target in the Renewable Energy Directive to 45% by 2030 and to increase the target in the Energy Efficiency Directive to 13%. This would bring the total renewable energy generation capacities to 1236 GW by 2030, in comparison to 1067 GW by 2030 envisaged under the 2021 proposal and will see increased needs for storage through batteries to deal with intermittency in the electricity grid. Similarly, policies related to the decarbonisation of the road sector, such as Regulation (EU) 2019/631 and Regulation (EU) 2019/1242 will be strong drivers for a further electrification of the road transport sector and thus increasing demand for batteries.	(5) The higher energy prices after the unjustified and unlawful military aggression by the Russian Federation against Ukraine, gave a strong impetus to accelerate the implementation of the European Green Deal and reinforce the resilience of the Energy Union by speeding up the clean energy transition and ending any dependence on fossil fuels exported from third countries.
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35 Communication of 18 May 2022 from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, REPowerEU Plan, COM/2022/230 final, 18.05.2022.

Amendment 7

Proposal for a regulation

Recital 6

Text proposed by the Commission	Amendment
(6) The net-zero transformation is already causing huge industrial, economic, and geopolitical shifts across the globe, which will become ever more pronounced as the world advances in its decarbonisation efforts. The road to net zero translates into strong opportunities for the expansion of Union’s net-zero industry, making use of the strength of the Single Market, by promoting investment in technologies in the field of renewable energy technologies , electricity and heat storage technologies, heat pumps, grid technologies, renewable fuels of non-biological origin technologies, electrolysers and fuel cells, fusion, small modular reactors and related best-in-class fuels, carbon capture, utilisation, and storage technologies, and energy-system related energy efficiency technologies and their supply chains, allowing for the decarbonisation of our economic sectors, from energy supply to transport, buildings, and industry. A strong net zero industry within the European Union can help significantly in reaching the Union’s climate and energy targets effectively, as well as in supporting other Green Deal objectives, while creating jobs and growth.	(6) The net-zero transformation is already causing huge industrial, economic, and geopolitical shifts across the globe, which will become ever more pronounced as the world advances in its decarbonisation efforts. Binding multilaterally agreed standards and benchmarks are important tools for making this transformation successful. The road to net zero translates into strong opportunities for the expansion of Union’s net-zero industry, making use of the strength of the Single Market, without prejudice to Regulation (EU) 2019/452, by promoting skills and training for the workforce in the EU, investment in technologies in the field of renewable energy technologies, electricity and heat storage technologies, heat pumps, grid technologies, renewable fuels of non-biological origin technologies, electrolysers and fuel cells, fusion, small modular reactors and related best-in-class fuels, carbon capture, utilisation, and storage technologies, and energy-system related energy efficiency technologies and their supply chains, allowing for the decarbonisation of our economic sectors, from energy supply to transport, buildings, and industry. A strong net zero industry within the European Union can help significantly in reaching the Union’s climate and energy targets effectively, as well as in supporting other Green Deal objectives, while creating jobs and growth.

Amendment 8

Proposal for a regulation

Recital 16

Text proposed by the Commission	Amendment
(16) The Union has helped build a global economic system based on open and rules-based trade, pushed for respecting and advancing social and environmental sustainability standards, and is fully committed to those values.	(16) The Union has helped and should further contribute to building a global economic system based on open, transparent and rules-based trade providing quality jobs, equal opportunities for all actors involved, pushing for respecting and advancing high social, labour and environmental sustainability standards, and is fully committed to those values. The Union should build up international partnerships concerning net-zero technologies so as to enhance the EU’s resilience at a global level. A diversification of supply chains in these technologies will also reduce dependencies and increase competitiveness. In a manner that is fair, transparent and WTO compliant, the Union promotes the level playing field globally through cooperation with trading partners, as well as by progressing targeted policies that address unfair trading practices and production overcapacity, with the objective of securing a fair, competitive global trading environment for EU industry, including for Net-Zero Industry Partnerships.

Amendment 9

Proposal for a regulation

Recital 21

Text proposed by the Commission	Amendment
(21) In order to maintain competitiveness and reduce current strategic import dependencies in key net-zero technology products and their supply chains, while avoiding the formation of new ones, the Union needs to continue strengthening its net zero industrial base and become more competitive and innovation friendly. The Union needs to enable the development of manufacturing capacity faster, simpler and in a more predictable way.	(21) In order to maintain competitiveness and reduce current strategic import dependencies in key net-zero technology products and their supply chains, while avoiding the formation of new ones, the Union needs to continue strengthening its net zero industrial base and become more competitive and innovation friendly, in parallel to diversifying its sources for imports of those products. The Union needs to enable the development of manufacturing capacity faster, simpler and in a more predictable way.

Amendment 10

Proposal for a regulation

Recital 23

Text proposed by the Commission	Amendment
(23) In addition, the Communication on the Green Deal Industrial Plan for the Net-Zero Age42 sets out a comprehensive approach to support a clean energy technology scale up based on four pillars. The first pillar aims at creating a regulatory environment that simplifies and fast-tracks permitting for new net-zero technology manufacturing and assembly sites and facilitates the scaling up of the net-zero industry of the Union. The second pillar of the plan is to boost investment in and financing of net-zero technology production, through the revised Temporary Crisis and Transition Framework adopted in March 2023 and the creation of a European Sovereignty fund to preserve the European edge on critical and emerging technologies relevant to the green and digital transitions. The third pillar relates to developing the skills needed to make the transition happen and increase the number of skilled workers in the clean energy technology sector. The fourth pillar focuses on trade and the diversification of the supply chain of critical raw materials. That includes creating a critical raw materials club, working with like-minded partners to collectively strengthen supply chains and diversifying away from single suppliers for critical input.	(23) In addition, the Communication on the Green Deal Industrial Plan for the Net-Zero Age42 sets out a comprehensive approach to support a clean energy technology scale up based on four pillars. The first pillar aims at creating a regulatory environment that simplifies and fast-tracks permitting for new net-zero technology manufacturing and assembly sites and facilitates the scaling up of the net-zero industry of the Union. The second pillar of the plan is to boost investment in and financing of net-zero technology production, through the revised Temporary Crisis and Transition Framework adopted in March 2023 and the creation of a European Sovereignty fund to preserve the European edge on critical and emerging technologies relevant to the green and digital transitions. The third pillar relates to developing the skills needed to make the transition happen and increase the number of skilled workers in the clean energy technology sector. The fourth pillar focuses on trade and the diversification of the supply chain of critical raw materials. That includes creating a critical raw materials club, working with like-minded partners to collectively strengthen supply chains implementing traceability systems and transparency, diversifying away from single suppliers for critical input, encouraging investment in downstream activities, and engaging in market research, in full compliance with social, labour and environmental standards. The EU should foster collaboration and partnerships to promote secure, sustainable and ethical supply chains in open markets combating economic coercion, export restrictions and unjustified and unfair imposition of tariffs.
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42 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: A Green Deal Industrial Plan for the Net-Zero Age, COM/2023/62 final, 01.02.2023.	42 Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions: A Green Deal Industrial Plan for the Net-Zero Age, COM/2023/62 final, 01.02.2023.

Amendment 11

Proposal for a regulation

Recital 29 a (new)

Text proposed by the Commission	Amendment
	(29 a) In view of the Union’s effort to promote a level playing field and reciprocity in market access for international public procurement, the Commission should ensure that the provisions of this act are implemented with respect to the Union’s commitments under the WTO Agreement on Government Procurement and public procurement chapters of EU FTAs.

Amendment 12

Proposal for a regulation

Recital 30

Text proposed by the Commission	Amendment
(30) Council Decision 2014/115/EU approved in particular the amendment to the World Trade Organisation Agreement on Government Procurement (the ‘GPA’)46 . The aim of the GPA is to establish a multilateral framework of balanced rights and obligations relating to public contracts with a view to achieving the liberalisation and expansion of world trade. For contracts covered by the European Union’s Appendix I to the GPA, as well as by other relevant international agreements by which the Union is bound, including free trade agreements and the Article III:8(a) of the General Agreement on Tariffs and Trade of 1994 for procurement by governmental agencies of products purchased with a view to commercial resale or with a view to use in the production of goods for commercial sale, contracting authorities and contracting entities should not apply the requirements of Article 19 (1) point (d) to economic operators of sources of supply that are signatories to the agreements.	(30) Council Decision 2014/115/EU approved in particular the amendment to the World Trade Organisation Agreement on Government Procurement (the ‘GPA’)46. The aim of the GPA is to establish a multilateral framework of balanced rights and obligations relating to public contracts with a view to achieving the liberalisation and expansion of world trade and to encourage its member countries to adopt green procurement policies that prioritize sustainable and environmentally-friendly goods and services. For contracts covered by the European Union’s Appendix I to the GPA, as well as by other relevant international agreements by which the Union is bound, including free trade agreements and the Article III:8(a) of the General Agreement on Tariffs and Trade of 1994 for procurement by governmental agencies of products purchased with a view to commercial resale or with a view to use in the production of goods for commercial sale, contracting authorities and contracting entities should not apply the requirements of Article 19 (1) point (d) to economic operators of sources of supply that are signatories to the agreements.
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46 Council decision 2014/115/EU of 2 December 2013 on the conclusion of the Protocol Amending the Agreement on Government Procurement, (OJ L68, 7.3.2014, p. 1).	46 Council decision 2014/115/EU of 2 December 2013 on the conclusion of the Protocol Amending the Agreement on Government Procurement, (OJ L68, 7.3.2014, p. 1).

Amendment 13

Proposal for a regulation

Recital 30 a (new)

Text proposed by the Commission	Amendment
	(30 a) In view of safeguarding a level playing field and reciprocity between European and third country entities and given the importance of ensuring an economically efficient green transition, the Commission should make sure that the relevant provisions of the International Procurement Instrument, Regulation (EU) 2022/1031, are applied when awarding contracts to third country entities in international public procurement procedures.

Amendment 14

Proposal for a regulation

Recital 30 b (new)

Text proposed by the Commission	Amendment
	(30 b) The WTO GPA promotes the use of international standards and guidelines in government procurement. By aligning procurement practices with internationally recognized standards, such as those related to greenhouse gas emissions or sustainable product certifications, governments could drive the adoption of net-zero industry solutions and create a level playing field for suppliers.

Amendment 15

Proposal for a regulation

Recital 31

Text proposed by the Commission	Amendment
(31) The application of the provisions on resilience in public procurement procedures set out in Article 19 should be without prejudice to the application of Article 25 of Directive 2014/24/EU of the European Parliament and of the Council47 , and Articles 43 and 85 of Directive 2014/25/EU of the European Parliament and of the Council48 , as according with the Commission’s guidance of 201949 . The same way, public procurement provisions should continue to apply to works, supplies and services subject to Article 19, including article 67 (4) of Directive 2014/24/EU and any implementing measures resulting from the Proposal for a Regulation establishing a framework for setting ecodesign requirements for sustainable products.	(31) The application of the provisions on resilience in public procurement procedures set out in Article 19 should be without prejudice to the application of Regulation 2022/1031/EU of the European Parliament and the Council; Article 25 of Directive 2014/24/EU of the European Parliament and of the Council47, and Articles 43 and 85 of Directive 2014/25/EU of the European Parliament and of the Council48, as according with the Commission’s guidance of 201949. The same way, public procurement provisions should continue to apply to works, supplies and services subject to Article 19, including article 67 (4) of Directive 2014/24/EU and any implementing measures resulting from the Proposal for a Regulation establishing a framework for setting ecodesign requirements for sustainable products.
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47 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).	47 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65).
48 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243).	48 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243).
49 Communication from the Commission: Guidance on the participation of third country bidders and goods in the EU procurement market, Brussels, 24.7.2019, C(2019) 5494 final.	49 Communication from the Commission: Guidance on the participation of third country bidders and goods in the EU procurement market, Brussels, 24.7.2019, C(2019) 5494 final.

Amendment 16

Proposal for a regulation

Recital 36

Text proposed by the Commission	Amendment
(36) When designing schemes benefitting households or consumers which incentivise the purchase of net-zero technology final products listed in the Annex, Member States, regional or local authorities, bodies governed by public law or associations formed by one or more such authorities or one or more such bodies governed by public law, should ensure the respect of the Union’s international commitments, including by ensuring that schemes do not reach a magnitude that causes serious prejudice to the interest of WTO members.	(36) When designing schemes benefitting households or consumers which incentivise the purchase of net-zero technology final products listed in the Annex, Member States, regional or local authorities, bodies governed by public law or associations formed by one or more such authorities or one or more such bodies governed by public law, should ensure the respect of the Union’s international commitments, including by ensuring that schemes are compatible with the Union's WTO commitments and do not reach a magnitude that causes serious prejudice to the interest of WTO members.

Amendment 17

Proposal for a regulation

Recital 39

Text proposed by the Commission	Amendment
(39) As indicated in the Communication on the Green Deal Industrial Plan for the Net-Zero Age, published on 1 February 2023, the Union’s industry’s market shares are under strong pressure, due to subsidies in third countries which undermine a level playing field. This translates in a need for a rapid and ambitious reaction from the Union in modernising its legal framework.	(39) As indicated in the Communication on the Green Deal Industrial Plan for the Net-Zero Age, published on 1 February 2023, the Union’s industry’s market shares are under strong pressure, due to subsidies in third countries which undermine a global level playing field, bring production overcapacity and distort competition. This translates in a need for rapid and ambitious reaction from the Union in modernising its legal framework of trade defence instruments in order to compete globally defending open and fair trade by making full and efficient use of all available tools, including full implementation and effective use of its Foreign Subsidies Instrument regulation. The EU and the Member States should cooperate with partners and multilateral organisations, notably the WTO, to actively promote the rules-based multilateral trading system and work to prevent the occurance of a subsidy race. In addition, to maintain competitiveness at a global level and assume a leadership role in technology development and strongly anchor the industry in the net-zero age, it is essential that the EU invests in research and innovation, in efficient and interconnected infrastructures, in automation, in digitization, as well as in energy- and resource-efficiency. Notably, attaching particular attention to small and medium-sized enterprises (SMEs) will be a crucial component for achieving success.

Amendment 18

Proposal for a regulation

Recital 63 a (new)

Text proposed by the Commission	Amendment
	(63 a) The absence of progress towards the objectives may indicate the need for adopting additional measures. The Commission should therefore monitor the progress towards those objectives. The Commission should also monitor the international context influencing the implementation of this Regulation referred to in recital 39.

Amendment 19

Proposal for a regulation

Recital 70

Text proposed by the Commission	Amendment
(70) As part of the Green Deal Industrial Plan the Commission announced its intention to conclude Net-Zero Industrial Partnerships covering net-zero technologies, to adopt net-zero technologies globally and to support the role of EU industrial capabilities in paving the way for the global clean energy transition. The Commission and Member States may coordinate within the Platform the Partnerships, discussing existing relevant partnerships and processes, such as green partnerships, energy dialogues and other forms of existing bilateral contractual arrangements, as well as potential synergies with relevant Member States’ bilateral agreements with third countries.	(70) As part of the Green Deal Industrial Plan the Commission announced its intention to conclude Net-Zero Industrial Partnerships covering net-zero technologies. Cooperation through such Partnerships will promote the adoption of net-zero technologies globally, to support mutually reinforcing partnerships between the Union and third countries, including sustainable investments and technical assistance. Net-Zero Industrial Partnerships can also contribute to the diversification and resilience of the EU's supply of net-zero technologies and their components, enhance information sharing between the Union and its partners on the development of net-zero technologies and support EU net-zero industries in accessing the global clean energy market, while supporting nascent industries in the field of clean energy technologies in third countries with clear comparative advantages. The Commission and Member States should coordinate within the Platform the Partnerships, discussing existing relevant partnerships and processes, such as green partnerships, energy dialogues and other forms of existing bilateral contractual arrangements, as well as potential synergies with relevant Member States’ bilateral agreements with third countries. Agreements with third countries including Net-Zero Industrial Partnerships should reflect core European values and objectives notably with regard to promoting labour and international environmental standards in these countries. Moreover, Net-Zero Industrial Partnerships should aim at contributing to the industrial transformation across the whole value chain of European and third country undertakings while ensuring open markets and fair trade.

Amendment 20

Proposal for a regulation

Recital 70 a (new)

Text proposed by the Commission	Amendment
	(70 a) Energy efficiency, circular economy and energy sobriety remain top priorities when it comes to reducing our strategic dependencies and to buttress our open strategic autonomy. In this context, strategies based on onshoring industries should take into consideration the EU’s need for allies in various international fora and should not alienate third countries nor pave the way for trade retaliation, a race to subsidies or resentment. In the preparation of Net-Zero Industrial Partnership, the Commission should carry out a thorough assessment of the Union's supply chain vulnerabilites and import dependencies. The outcomes of this assessment, as well as the need to enhance cooperation with reliable and like-minded global partners, should inform the conclusions of Net-Zero Industrial Partnerships.

Amendment 21

Proposal for a regulation

Recital 71

Text proposed by the Commission	Amendment
(71) The Union should aim to diversify international trade and investments in net-zero technologies and to promote globally high social and environmental standards should be done in close cooperation and partnership with like-minded countries. Similarly, stronger research and innovation efforts to develop and deploy net-zero technologies should be pursued in close cooperation with partner countries in an open but assertive approach.	(71) The Union should aim to diversify international trade and investments in net-zero technologies forging mutually-reinforcing partnerships, building on partners' own sustainable development plans, relevant environmental and human rights standards while promoting globally high social, labour and environmental standards. This should be done in close cooperation and partnership with like-minded countries via existing agreements or new strategic deals. Similarly, stronger international cooperation on research and innovation efforts to develop and deploy net-zero technologies should be pursued in close cooperation with partner countries in an open and balanced manner, with due regard to the Union’s strategic interests and needs.

Amendment 22

Proposal for a regulation

Recital 71 a (new)

Text proposed by the Commission	Amendment
	(71 a) The Union remains committed to an open and multi-lateral, rules-based trading system. With this in mind, measures that are introduced by the Union that impact trade must be WTO compliant, and take into account the possible response of the Union’s trading partners. The European Commission should engage at an early stage in information and communication with our trading partners on the implementation of the NZIA in order to address any perceived protectionism on the part of the Union and to support the geopolitical ambitions of the EU.

Amendment 23

Proposal for a regulation

Recital 74 a (new)

Text proposed by the Commission	Amendment
	(74 a) The objectives of the NZIA, its implementation, and the impact it will have throughout various sectors and levels of the economy, require active cooperation among the EU institutions. Democratic scrutiny is further needed in ensuring Commission’s accountability within the Platform as well as at all stages of NZ private-public partnerships and budget execution. To ensure its role, the European Parliament should be reported to by the Commission on regular basis, when at the same time, it should have the possibility to request information from the “Platform” when considered necessary, to better assess its debates or proceedings.

Amendment 24

Proposal for a regulation

Recital 74 b (new)

Text proposed by the Commission	Amendment
	(74 b) To boost the production of clean energy technologies, trade and investment policy plays an essential role in promoting open and sustainable value chains, and in diversifying the supply of raw materials and intermediates critical to the transition. To this end, the Union should negotiate Strategic Industrial Partnerships with reliable partners and to fully apply the relevant trade defence instruments that correct and deter potential protectionist behaviour of suppliers and competitors also by means of reviewing administrative procedures and processing times. In order for trade policy to be efficiently implemented, the Union should assess and review its negotiating procedures for the conclusion, evaluation or modernisation of both trade and investment agreements.

Amendment 25

Proposal for a regulation

Article 1 – paragraph 1

Text proposed by the Commission	Amendment
1. This Regulation establishes the framework of measures for innovating and scaling up the manufacturing capacity of net-zero technologies in the Union to support the Union’s 2030 target of reducing net greenhouse gas emissions by at least 55 % relative to 1990 levels and the Union’s 2050 climate neutrality target, as defined by Regulation (EU) 2021/1119, and to ensure the Union’s access to a secure and sustainable supply of net-zero technologies needed to safeguard the resilience of the Union’s energy system and to contribute to the creation of quality jobs.	1. This Regulation establishes the framework of measures for innovating and scaling up the manufacturing capacity of net-zero technologies in the Union and via mutually reinforcing partnerships with third countries, to support the Union’s 2030 target of reducing net greenhouse gas emissions by at least 55 % relative to 1990 levels and the Union’s 2050 climate neutrality target, as defined by Regulation (EU) 2021/1119, and to ensure the Union’s access to a secure and sustainable supply of net-zero technologies needed to safeguard the resilience of the corresponding Union’s supply chains and to contribute to the global sustainable just transition and the creation of quality jobs and to the availability of affordable energy in the Union an abroad.

Amendment 26

Proposal for a regulation

Article 1 – paragraph 2 – point b a (new)

Text proposed by the Commission	Amendment
	b a) the risk-based reduction of strategic dependencies from a single source of supply, none of which provide more than 65% of the Union’s annual consumption, while safeguarding diversification by open, fair and sustainable trade;

Amendment 27

Proposal for a regulation

Article 1 – paragraph 2 – point b b (new)

Text proposed by the Commission	Amendment
	b b) the establishment of mutually beneficial and reinforcing cooperation and partnerships with third countries to enhance the production and deployment of net-zero technologies including by means of multilateral cooperation securing their sustainable supply in the Union and further development abroad and the establishment of a plurilateral alliance to foster the production and deployment of net-zero technologies by means of partnerships.

Amendment 28

Proposal for a regulation

Article 5 – paragraph 1 – point d

Text proposed by the Commission	Amendment
(d) business support services, including but not limited to corporate tax declaration, local tax laws, labour law.	(d) business support services, including but not limited to corporate tax declaration, local tax laws, labour law with a particular focus on SMEs.

Amendment 29

Proposal for a regulation

Article 10 – paragraph 1 – introductory part

Text proposed by the Commission	Amendment
1. Member States shall recognise as net-zero strategic projects net-zero technology manufacturing projects corresponding to a technology listed in the Annex and located in the Union that contributes to the realisation of the objectives set out in Article 1 of this Regulation and meet at least one of the following criteria:	1. Member States shall recognise as net-zero strategic projects net-zero technology manufacturing projects corresponding to a technology listed in the Annex and located in the Union that contributes to the realisation of the objectives set out in Article 1 of this Regulation. These projects should aim to promote the global advancement of net-zero technologies while ensuring a sustainable supply within the Union and fostering further development internationally. Moreover, these manufacturing projects should demonstrate enhanced sustainability and performance, aligning with the social and environmental goals of the European Union. They should encourage sustainable practices across their entire supply chain, including collaboration with suppliers. Such projects must meet at least one of the following criteria:

Amendment 30

Proposal for a regulation

Article 10 – paragraph 1 – point a

Text proposed by the Commission	Amendment
(a) the net-zero technology manufacturing project contributes to the technological and industrial resilience of the Union’s energy system by increasing the manufacturing capacity of a component or part in the net-zero technology value chain for which the Union heavily depends on imports coming from a single third country ;	(a) the net-zero technology manufacturing project contributes to the technological and industrial resilience of the Union’s energy system by increasing the manufacturing capacity of a component or part in the net-zero technology value chain for which the Union heavily depends on imports coming from a single or more third countries;

Amendment 31

Proposal for a regulation

Article 10 – paragraph 1 – point b – point i

Text proposed by the Commission	Amendment
(i) it adds significant manufacturing capacity in the Union for net-zero technologies;	(i) it adds significant manufacturing capacity in the Union for net-zero technologies without creating new strategic dependencies from a single source of supply;

Amendment 32

Proposal for a regulation

Article 10 – paragraph 1 – point b – point ii

Text proposed by the Commission	Amendment
(ii) it manufactures technologies with improved sustainability and performance;	deleted

Amendment 33

Proposal for a regulation

Article 10 – paragraph 1 – point b – point iv a (new)

Text proposed by the Commission	Amendment
	(iv a) it includes criteria such as responsible sourcing of raw materials and the use of sustainable transportation methods.

Amendment 34

Proposal for a regulation

Article 11 – paragraph 3

Text proposed by the Commission	Amendment
3. Member States shall assess the application referred to in paragraph 1 through a fair and transparent process within a month. The absence of a decision by Member States within that time frame shall constitute an approval of the project.	3. Member States shall assess the application referred to in paragraph 1 through a fair and transparent process within a month without prejudice to Regulation(EU) 2019/452. The absence of a decision by Member States within that time frame shall constitute an approval of the project.

Amendment 35

Proposal for a regulation

Article 12 – paragraph 3

Text proposed by the Commission	Amendment
3. Net-zero strategic projects shall be considered to contribute to the security of supply of strategic net-zero technologies in the Union and therefore to be in the public interest. With regard to the environmental impacts addressed in Articles 6(4) and 16(1)I of Directive 92/43/EEC, Article 4(7) of Directive 2000/60/EC and Article 9(1)(a) of Directive 2009/147/EC, net-zero strategic projects in the Union shall be considered as being of public interest and may be considered as having an overriding public interest provided that all the conditions set out in those Directives are fulfilled.	3. Net-zero strategic projects shall be considered to contribute to the security of supply of strategic net-zero technologies in the Union and therefore to be in the public interest. With regard to the environmental impacts addressed in Articles 6(4) and 16(1)I of Directive 92/43/EEC, Article 4(7) of Directive 2000/60/EC and Article 9(1)(a) of Directive 2009/147/EC, net-zero strategic projects in the Union shall be considered as being of public interest and may be considered as having an overriding public interest provided that all the conditions set out in those Directives are fulfilled, ensuring in particular that the project complies with the Habitats Directive and the protection of Natura 2000 sites, as well as commitments made under the Paris Agreement.

Amendment 36

Proposal for a regulation

Article 14 – paragraph 2 – introductory part

Text proposed by the Commission	Amendment
2. Member States may provide administrative support to net-zero strategic projects to facilitate their rapid and effective implementation, including by providing:	2. The Commission and Member States may provide administrative support to net-zero strategic projects to facilitate their rapid and effective implementation, including by providing:

Amendment 37

Proposal for a regulation

Article 14 – paragraph 2 – point b a (new)

Text proposed by the Commission	Amendment
	(b a) assistance to EU project promoters in third countries to highlight the local economic, social, and environmental benefits of the projects, through comprehensive and transparent public education campaign, to further increase the public acceptance of the project.

Amendment 38

Proposal for a regulation

Article 15 – paragraph 2 – point d

Text proposed by the Commission	Amendment
(d) relevant Union funding and financing programmes.	(d) relevant Union funding and financing programmes including a repurposed EU Innovation Fund that supports the scaling up of existing state-of-the-art and innovative EU net zero industry technologies and their supply chains;

Amendment 39

Proposal for a regulation

Article 15 – paragraph 2 – point d a (new)

Text proposed by the Commission	Amendment
	(d a) technical assistance for projects in the EU and partner countries via, amongst others, the CBAM revenues and the InvestEU Advisory Hub.

Amendment 40

Proposal for a regulation

Chapter IV – title

Text proposed by the Commission	Amendment
IV Access to markets	Access to markets and global level playing field

Amendment 41

Proposal for a regulation

Article 19 – paragraph 1

Text proposed by the Commission	Amendment
1. Contracting authorities or contracting entities shall base the award of contracts for net-zero technology listed in the Annex in a public procurement procedure on the most economically advantageous tender, which shall include the best price-quality ratio, comprising at least the sustainability and resilience contribution of the tender, in compliance with Directives 2014/23/EU, 2014/24/EU, or 2014/25/EU and applicable sectoral legislation, as well as with the Union’s international commitments, including the GPA and other international agreements by which the Union is bound.	1. Contracting authorities or contracting entities shall base the award of contracts for net-zero technology listed in the Annex in a public procurement procedure on the most economically advantageous tender, which shall include the best price-quality ratio, comprising at least the sustainability and resilience contribution of the tender, in compliance with Directives 2014/23/EU, 2014/24/EU, or 2014/25/EU and applicable sectoral legislation, as well as with the Union’s Regulation (EU) 2022/1031 and international commitments, including the GPA and other international agreements by which the Union is bound.

Amendment 42

Proposal for a regulation

Article 19 – paragraph 2 – introductory part

Text proposed by the Commission	Amendment
2. The tender’s sustainability and resilience contribution shall be based on the following cumulative criteria which shall be objective, transparent and non-discriminatory:	2. The tender’s sustainability and resilience contribution shall be based on the following criteria which shall be objective, transparent and non-discriminatory:

Amendment 43

Proposal for a regulation

Article 19 – paragraph 2 – point a a (new)

Text proposed by the Commission	Amendment
	(a a) social sustainability criteria as applied under existing legislation and can include working conditions and collective bargaining in line with the European Pillar of Social Rights in line with Articles, 30 (3) of Directive 2014/23/EU, 18 (2) of Directive 2014/24/EU and 36 (2) of Directive 2014/25/EU;

Amendment 44

Proposal for a regulation

Article 19 – paragraph 2 – point d

Text proposed by the Commission	Amendment
(d) the tender’s contribution to resilience, taking into account the proportion of the products originating from a single source of supply, as determined in accordance with Regulation (EU) No 952/2013 of the European Parliament and of the Council72 , from which more than 65% of the supply for that specific net-zero technology within the Union originates in the last year for which data is available for when the tender takes place.	(d) the tender’s contribution to sustaining and reinforcing European supply chains’ resilience, taking into account the proportion of the products originating from a single source of supply, as determined in accordance with Regulation (EU) No 952/2013 of the European Parliament and of the Council72 , from which more than 65% of the supply for that specific net-zero technology within the Union originates in the last year for which data is available for when the tender takes place.
__________________	__________________
72 Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).	72 Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).

Amendment 45

Proposal for a regulation

Article 19 – paragraph 4 a (new)

Text proposed by the Commission	Amendment
	4 a. Any tender submitted for the award of a supply contract in all the sectors of the net zero technologies as listed in Articles 3 point 1 (a) and of the strategic net-zero technologies as listed in Annex 1, could be excluded if the economic operator originates from a country whose economic operators, goods and services are the subject to an IPI measure as defined in the Regulation 2022/1031/EU of the European Parliament and of the Council, especially the Articles 6 and 8. It could also be excluded for companies that do not comply with applicable EU legal business and human rights requirements.

Amendment 46

Proposal for a regulation

Article 20 – paragraph 1

Text proposed by the Commission	Amendment
1. Without prejudice to Article 4 of Directive (EU) 2018/2001 and Articles 107 and 108 the Treaty, and to the Union’s international commitments including the GPA and other international agreements by which the Union is bound, Member States, regional or local authorities, bodies governed by public law or associations formed by one or more such authorities or one or more such bodies governed by public law, shall assess the sustainability and resilience contribution as referred to in Article 19(2) of this Regulation when designing the criteria used for ranking bids in the framework of auctions, the aim of which is to support the production or consumption of energy from renewable sources as defined in Article 2, point (1) of Directive (EU) 2018/2001.	1. Without prejudice to Article 4 of Directive (EU) 2018/2001 and Articles 107 and 108 the Treaty, and to the Union’s international commitments including the GPA and other international agreements by which the Union is bound, Member States, regional or local authorities, bodies governed by public law or associations formed by one or more such authorities or one or more such bodies governed by public law, could assess cybersecurity as a criteria, and shall assess the sustainability and resilience contribution as referred to in Article 19(2) of this Regulation when designing the criteria used for ranking bids in the framework of auctions, the aim of which is to support the production or consumption of energy from renewable sources as defined in Article 2, point (1) of Directive (EU) 2018/2001.

Amendment 47

Proposal for a regulation

Article 22 a (new)

Text proposed by the Commission	Amendment
	Article 22 a
	Strengthening global value chains for net-zero technologies
	1. The Commission and the Member States shall implement a global commercial and investment strategy, both multilaterally in the framework of the WTO and bilaterally, to strengthen global value chains for net-zero technology in a way that rebalances trade relations, fosters the protection of Human Rights along supply chains, secures responsible and reliable imports, addresses overcapacity and trade distortions, and develops net-zero technologies while promoting high social, labour and environmental standards. The Commission, where appropriate, shall make full use of trade defence instruments to defend a fair, reciprocal and open trade, proceeding cautiously, transparently, efficiently and in a way that it is comprehensible and understandable to third parties.
	2. In their trade and investments strategies, in the framework of the WTO and through bilateral trading arrangements, the Commission and the Member States shall aim to diversify and strengthen global value chains for net-zero technologies.

Amendment 48

Proposal for a regulation

Article 22 b (new)

Text proposed by the Commission	Amendment
	Article 22 b
	Net-Zero Industrial Partnerships
	1. Without prejudice to existing trade and investment agreements between the Union and third countries, the Commission shall enter into Net-Zero Industrial Partnerships with third countries.
	2. In the preparation of Net-Zero Industrial Partnership, the Commission should carry out a thorough assessment of the Union's supply chain vulnerabilities and import dependencies, with reference to the criteria set out in Article 28(4)(c). The outcomes of this assessment, as well as the need to enhance cooperation with reliable and like-minded global partners, should inform the conclusions of Net-Zero Industrial Partnerships.
	3. Net-Zero Industrial Partnerships shall have the following objectives:
	(a) safeguarding the availability of necessary resources and raw materials for the production of net-zero technologies, avoid overdependence on single suppliers and diversify the sources;
	(b) opening new export markets for European Union producers of net-zero technologies and manufactured goods and enhancing the resilience of global supply and value chains, promoting transparency while bringing added value to the local economy and society of the partner country;
	(c) ensuring a level playing field between European and third country undertakings including for public procurement procedures and access of European undertakings to third country tenders;
	(d) reducing the administrative burden and simplifying permitting procedures;
	(e) stimulating global public and private investments in net-zero technologies and to support clean tech manufacturing in third countries;
	(f) contributing to the industrial transformation of European and third country undertakings in an balanced way and improving the environmental performance along the global value chain;
	(g) cooperating with partners to identify and mitigate tariff and non-tariff barriers to trade in net-zero technologies and their components;
	(h) stimulating international cooperation on research, innovation and knowledge exchange of the development and deployment of net-zero technologies;
	(i) upholding partners' own sustainable development plans and relevant environmental and human rights standards in line with international standards and conventions, including fundamental ILO conventions, OECD Guidelines for Multinational Enterprises and the OECD Due Diligence Guidance for Responsible Business Conduct.
	4. The Commission shall review Net-Zero Industrial Partnerships on a regular basis or upon request of the European Parliament and report on the progress to the relevant Parliamentary committees.
	5. Member States shall support the Commission in the implementation of the cooperation measures set out in the Net-Zero Industrial Partnership.

Amendment 49

Proposal for a regulation

Article 28 – paragraph 3

Text proposed by the Commission	Amendment
3. The Platform may advise and assist the Commission and Member States in relation to their actions to reach the objectives outlined in Chapter I of this Regulation, taking into account Member States’ national energy and climate plans submitted under Regulation (EU) 2018/199975 .	3. The Platform may advise and assist the Commission and Member States in relation to their actions to reach the objectives outlined in Chapter I of this Regulation, taking into account Member States’ national energy and climate plans submitted under Regulation (EU) 2018/199975, and to address bottlenecks for the uptake of these technologies, in particular in energy-intensive industries where emissions are hard to abate.
__________________	__________________
75 Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (Text with EEA relevance.), (OJ L 328, 21.12.2018, p. 1).	75 Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (Text with EEA relevance.), (OJ L 328, 21.12.2018, p. 1).

Amendment 50

Proposal for a regulation

Article 28 – paragraph 4 – introductory part

Text proposed by the Commission	Amendment
4. The Commission and Member States may coordinate within the Platform on the Net-Zero Industrial Partnerships and also with relevant third countries to help promote the adoption of net-zero technologies globally and to support the role of Union industrial capabilities in paving the way for the global clean energy transition, in line with the overall objectives of this Regulation stemming from Article 1 of this Regulation. The Platform may periodically discuss:	4. The Commission and Member States shall coordinate within the Platform on the Net-Zero Industrial Partnerships and also with relevant third countries to help promote the adoption of net-zero technologies globally and to support mutually reinforcing partnerships between the Union and third countries as well as the role of Union industrial capabilities, including know-how and tech-transfers, sustainable investments and technical assistance, in paving the way for the global clean energy transition, in line with the overall objectives stemming from Article 1 of this Regulation. The Platform may periodically discuss:

Amendment 51

Proposal for a regulation

Article 28 – paragraph 4 – point a

Text proposed by the Commission	Amendment
(a) how to improve cooperation along the net-zero value chain between the Union and third countries;	(a) how to improve cooperation along the net-zero value chain between the Union and third countries via, amongst others, exchange of best practices, knowledge and tech transfers, technical assistance and financial support via equity, loans, public-private leverage and instruments like export credit agencies;

Amendment 52

Proposal for a regulation

Article 28 – paragraph 4 – point a a (new)

Text proposed by the Commission	Amendment
	(a a) how to uphold partners' own sustainable development plans, relevant environmental and human rights standards, while striving for the achievement of the objectives in international standards and conventions, including fundamental ILO conventions, OECD Guidelines for Multinational Enterprises and the OECD Due Diligence Guidance for Responsible Business Conduct;

Amendment 53

Proposal for a regulation

Article 28 – paragraph 4 – point b

Text proposed by the Commission	Amendment
(b) how to address non-tariff barriers to trade, such as through mutual recognition of conformity assessment or commitments to avoid export restrictions;	(b) how to address non-tariff barriers to trade, such as through mutual recognition of conformity assessment or commitments to avoid export restrictions of net-zero technologies;

Amendment 54

Proposal for a regulation

Article 28 – paragraph 4 – point b a (new)

Text proposed by the Commission	Amendment
	(b a) how to ensure a level playing field for European undertakings to public procurements of third countries falling under the scope of Regulation (EU) 2022/1031;

Amendment 55

Proposal for a regulation

Article 28 – paragraph 4 – point c – point i

Text proposed by the Commission	Amendment
i) the potential contribution to security of supply, taking into account their manufacturing capacity of net-zero technologies;	i) the potential for mutually reinforcing partnerships, enhancing the sustainable and just transition in the EU and globally, the contribution to the resilience of EU supply chains, taking into account the manufacturing capacity of net-zero technologies and forging reliable reciprocal alliances while respecting relevant international labour standards and conventions;

Amendment 56

Proposal for a regulation

Article 28 – paragraph 4 – point c – point ii

Text proposed by the Commission	Amendment
ii) whether there are existing cooperation agreements between a third country and the Union.	ii) whether there are existing cooperation agreements between a third country and the Union, considering those countries that contain specific provisions on energy and raw materials.

Amendment 57

Proposal for a regulation

Article 28 – paragraph 4 – point c a (new)

Text proposed by the Commission	Amendment
	(c a) concrete provisions to foster trade in environmental goods and services in view of reaching a comprehensive international agreement on this matter.

Amendment 58

Proposal for a regulation

Article 28 – paragraph 5 a (new)

Text proposed by the Commission	Amendment
	5 a. Member States and the Commission shall also seek positive synergies between such Partnerships and existing initiatives like Global Gateway, the G7 Partnership for Global Infrastructure and Investment, and the Just Energy Transition Partnerships.

Amendment 59

Proposal for a regulation

Article 29 – paragraph 1

Text proposed by the Commission	Amendment
1. The Platform shall be composed Member States and of the Commission. It shall be chaired by a representative of the Commission.	1. The Platform shall be composed of representatives from the Member States and the Commission. Members of the European Parliament will be invited to attend its meetings, including of the standing or temporary sub-groups referred to in paragraph 6.

Amendment 60

Proposal for a regulation

Article 29 – paragraph 7

Text proposed by the Commission	Amendment
7. The Platform shall invite representatives of the European Parliament to attend, as observers, its meetings, including of the standing or temporary sub-groups referred to in paragraph 6.	7. The Platform shall invite and regularly consult relevant stakeholders, including civil society and industry representatives, to attend the standing or temporary sub-groups referred to in paragraph 6.

Amendment 61

Proposal for a regulation

Article 29 – paragraph 8

Text proposed by the Commission	Amendment
8. Where appropriate, the Platform or the Commission may invite experts and other third parties to Platform and sub-group meetings or to provide written contributions.	deleted

Amendment 62

Proposal for a regulation

Article 35 – paragraph 2

Text proposed by the Commission	Amendment
2. The evaluation shall assess whether the objectives of this Regulation as established in Article 1 have been achieved and its impact on business users, especially SMEs, and end users, and the European Green Deal objectives.	2. The evaluation shall assess whether the objectives of this Regulation as established in Article 1 have been achieved notably through the Net Zero Industrial Partnerships, and its impact on business users, especially SMEs, and end users, and the European Green Deal objectives.

Amendment 63

Proposal for a regulation

Article 35 – paragraph 3 a (new)

Text proposed by the Commission	Amendment
	3 a. By…[1 year after the date of application of this Regulation], the Commission shall present an impact assessment of the regulation to the European Parliament, the Council and the European Economic and Social Committee.