Skip to content
DRAFT REPORT (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)

ITRE-PR-749154

Committee on Industry, Research and Energy · Rapporteur: Christian Ehler

✦ In short · AI summary of this text, generated 4 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

The draft report amends the Commission's proposal for a Net Zero Industry Act regulation. It redefines net-zero technologies, sets a 25% global demand benchmark, introduces Net-Zero Industry Valleys, and adds provisions on innovation and competitiveness. It also addresses CO2 storage and transport, permitting deadlines, and financing, including using 25% of national ETS revenues.

Committee position. The rapporteur proposes substantial amendments to the Commission proposal, including redefining net-zero technologies, setting a global demand benchmark, introducing Net-Zero Industry Valleys, and adding innovation and competitiveness provisions.

Key points

  1. The regulation aims to support climate neutrality and industrial competitiveness, contributing to quality jobs and secure energy supply.
  2. By 2030, manufacturing capacity should reach at least 25% of global demand for net-zero technologies, measured by value.
  3. Net-zero technologies are defined as any technology contributing to climate change mitigation under the Taxonomy Regulation, with components, materials, and machinery included.
  4. The concept of Net-Zero Strategic Projects is deleted; instead, Member States designate Net-Zero Industry Valleys with plans and environmental assessments.
  5. Permit-granting for net-zero manufacturing projects is capped at 9 months for under 1 GW and 12 months for over 1 GW, with tacit approval if authorities fail to reply.
  6. Net-zero technology manufacturing projects are granted priority status and considered in the public interest, overriding certain environmental concerns if conditions are met.
  7. CO2 injection capacity of at least 50 million tonnes annually by 2030 is required, with storage sites operating at least five years and respecting third-party access.
  8. The Commission must propose requirements for CO2 injection capacity for 2035, 2040, and 2050 by 31 December 2026, and report every two years on progress.
  9. Member States and the Union must invest in CO2 transport infrastructure, including cross-border, and draw up a common financing strategy within six months.
  10. Public procurement and consumer incentive schemes must consider sustainability and resilience contributions of net-zero products.
  11. The Strategic Energy Technology Plan is established to coordinate research and innovation, with a SET Plan Board including industry and research actors.
  12. Regulatory burden on industry must be reduced by 20% by 2030, with 40% reductions for new product placement and SME administrative burden.

Who is affected

  • Manufacturers of net-zero technologies and their supply chains, who benefit from streamlined permitting and priority status.
  • Oil and gas producers, who must contribute to CO2 injection targets and may face sanctions for non-compliance.
  • Member States, which must designate Net-Zero Industry Valleys and implement permitting and CO2 storage measures.
  • Small and medium enterprises, which gain from reduced administrative burden and an SME Envoy.

Figures and deadlines

  • 25% of global demand for net-zero technologies by 2030
  • 50 million tonnes of annual CO2 injection capacity by 2030
  • 9 months for permits under 1 GW, 12 months for over 1 GW
  • 31 December 2026 for proposing future CO2 injection requirements
  • 20% reduction in regulatory burden, 40% for new products and SMEs by 2030
  • 25% of national ETS revenues for Act objectives

Legal basis: Articles 114 and 173 of the Treaty on the Functioning of the European Union