EU bids to boost domestic green tech industry

European Union (EU) policymakers are aiming to agree on new regulations to boost local manufacturing of solar and wind power equipment, fuel cells, and other green technologies, Reuters reported on Tuesday.

This move aims to make the EU industry competitive with its Chinese and U.S. counterparts.

The bloc is setting a 2030 goal to produce 40 per cent of the products required for greenhouse gas reduction domestically, including renewable energy, battery storage, heat pumps, electrolysers, biogas, carbon capture, and electricity grids.

Europe’s dependence on China is growing, with China predicted to hold 80 per cent of the world’s solar power manufacturing capacity.

There are also worries that the $369 billion in green subsidies from the U.S. Inflation Reduction Act might lure European manufacturers to move their operations.

lawmakers from the European Parliament and Belgium, the current holder of the EU’s rotating presidency, will spend the day negotiating to finalise the details of the Net-Zero Industry Act (NZIA).

The NZIA stands as a key part of the EU’s strategy to not only lead the world in reducing greenhouse gas emissions but also in producing the necessary clean technology.

The act, set to become effective later this year, aims for a more efficient permit process with a guarantee of issuance within 18 months.

In the process of awarding contracts for clean-tech equipment, public authorities must evaluate not just the cost but also environmental considerations.

They must also ensure that no single source provides more than 65 per cent of the supply.

The discussions on Tuesday will likely centre around the broad interpretation of clean technology, including whether to consider nuclear power or all equipment components.

Other topics may include the possibility of reducing permit timelines and the strict application of non-price criteria in tenders.