Net-Zero Strategic Projects under EU's Net-Zero Industry Act (NZIA)

planned

The Net-Zero Industry Act (NZIA) establishes a legal framework to support the development and expansion of the EU's capacity to manufacture net-zero technologies, including final products, components, and machinery essential for their production. It applies to 19 categories of net-zero technologies contributing to the EU's decarbonisation objectives, such as solar, battery and energy storage, electricity grid, and nuclear fission technologies. The NZIA also covers energy-intensive industry decarbonisation projects in sectors like steel, aluminium, chemicals, cement, and others, provided they produce components used in net-zero technology supply chains and invest in decarbonisation of industrial processes. The Act aims to reduce strategic import and supply chain dependencies by achieving at least 40% domestic EU manufacturing capacity by 2030 and 15% of global production by 2040. It includes a mechanism for designating net-zero strategic projects, which are planned commercial facilities or decarbonisation projects recognized by Member States based on their contribution to NZIA objectives. Benefits include expedited permit processes, financing advice, simplified environmental assessments, and potential financial support via the Strategic Technologies for Europe Platform (STEP). The NZIA entered into force on 29 June 2024 and is applicable in all 27 EU Member States, including Bulgaria. Currently, eight projects in the EU have been designated as net-zero strategic projects, including a battery energy storage project in Bulgaria.