The European Parliament (EP) has officially adopted the Net Zero Industrial Act (NZIA) in an effort to promote the production and deployment of domestically-made net-zero technologies, such as hydrogen equipment. The bill aims to boost manufacturing capability and deployment targets for EU-produced net-zero equipment, including electrolyzers, fuel cells, and other H2 kit.
The NZIA is seen as a step towards making the European market suitable for achieving net-zero technology goals. Christian Ehler, the Member of the European Parliament leading the bill, stated that the vote is positive news for European industry and sets the tone for future economic, climate, and energy ambitions. The bill includes provisions for streamlining permitting and offering regulatory perks to net-zero equipment manufacturers, with a goal of 40% of total electrolyzer deployment being “Made In Europe”. Additionally, it outlines the creation of “Net-Zero Acceleration Valleys” to support projects seeking to build new manufacturing facilities.
The adoption of the NZIA is seen as a measure to counter the increasing dominance of Chinese manufacturers in the global net-zero technology market. Chinese manufacturers currently hold 34% of the global electrolyzer market, with Europe in second place at 27%. European electrolyzer manufacturers have raised concerns that EU subsidy schemes favoring low-cost production could inadvertently support cheap Chinese equipment. However, this act will help boost local manufacturing capabilities and reduce dependence on foreign markets.
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