- The European Union has passed a law that aims to achieve 40% local production of green technology equipment by 2030 to enhance competitiveness and reduce dependence on China and the United States.
- The European Union passed a net zero industrial bill to simplify project permits and boost local manufacturing in a bid to counter the dominance of China and the United States in green technology.
The European Union has formally passed the Net Zero Industry Act, which plans to achieve 40% local production of solar panels, wind turbines, heat pumps and other equipment by 2030 to reduce dependence on China and the United States and enhance competitiveness.
Net Zero Industry Act
The Net Zero Industry Act (NZIA) is a transformative piece of legislation aimed at significantly boosting the European Union’s production of green technology. With a target to produce 40% of its solar panels, wind turbines, heat pumps, and other clean tech equipment by 2030, the EU is positioning itself as a leader in both reducing greenhouse gas emissions and manufacturing the necessary technology. The act is set to come into force next month or early July, once signed by the presidents of the European Parliament and the Council.
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EU’s strategy against U.S. and Chinese dominance
The global green tech landscape is currently dominated by China and the United States, with China forecasted to control 80% of the world’s solar manufacturing capacity. Additionally, the $369 billion green subsidies in the U.S. Inflation Reduction Act pose a threat of enticing European producers to relocate to the United States. In response, the EU’s NZIA aims to fortify the continent’s green tech industry by streamlining project permits and boosting local manufacturing.
