European Union governments have officially approved a new law to boost the bloc's production of green technology, including solar panels, wind turbines, and heat pumps, to raise competitiveness against US and Chinese counterparts, per Reuters.
The Net Zero Industry Act (NZIA), pending signatures from the European Parliament and the Council, is slated to take effect next month or early July. It is a cornerstone of the EU's strategy to lead in reducing greenhouse gas emissions and manufacturing essential technology.
With China projected to hold 80% of global solar power manufacturing capacity and concerns over US green subsidies potentially luring European producers away, the law underlines the EU's commitment to domestic production.
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Net Zero Emission-Reducing Products
The NZIA sets ambitious targets for the EU, aiming to manufacture 40% of necessary emission-reducing products by 2030 and to increase this to 15% of global production by 2040. To facilitate this, the act streamlines permit processes for projects boosting EU manufacturing and mandates public authorities to prioritize sustainability and resilience in purchasing decisions.
However, achieving these targets poses challenges, particularly in the solar sector, where EU manufacturers currently supply less than 3% of panel deployments. The wind energy sector, though stronger, faces increasing competition from Chinese companies.
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