Invitation

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High-level meeting in anticipation of the Net-Zero Industry Act

and the Net-Zero Europe Platform

Background note

Net-Zero Industry Act – Implementation phase

The Net-Zero Industry Act (NZIA) establishes a framework of measures for strengthening our net-

zero technology manufacturing ecosystem. Following the final agreement between the European

Parliament and Council on 6 February 2024, the NZIA is expected to enter into force in July 2024.

The most immediate implementation deliverables for this year are:

- Setting up the Net-Zero Europe Platform, by Q3/Q4 2024;

- Putting in place a system for granting strategic project status, by entry into force;

- Providing guidance to Member States on the application of requirements related to the public

procurement provisions;

- For Member States to designate Single points of contact, by 6 months of entry into force.

In parallel, the work will begin on a series of implementing and delegated acts, some of which

need to be adopted by March 2025, among them:

- A delegated act to specify in the Annex the components primarily used for the production of

net-zero technologies.

- An implementing act specifying the prequalification and award criteria for auction design.

- An implementing act specifying minimum public procurement requirements on

environmental sustainability.

- An implementing act providing guidelines on the uniform application of selection criteria for

strategic projects.

The Net-Zero Europe Platform

The Net-Zero Industry Act aims at simplifying the regulatory framework, and improving the

investment environment for the Union’s manufacturing capacity of technologies that are key to

meet the Union’s climate neutrality goals and ensure that our decarbonised energy system is

resilient. To support the achieving of the Act’s ambition, the Net-Zero Europe Platform will be set

up and composed of a representative from each Member State, with the Commission as Chair.

Where appropriate, the Platform may invite experts and other third parties to attend as observers.

NZIA entrusts the Platform with various tasks such as exchanging best practices regarding permit-

granting processes, financing of net-zero industries, application of non-pricing criteria in public

procurement and auctions and the availability of skills in the net-zero technologies. Other tasks

involve monitoring the Net-Zero Industry Academies’ activities, coordination on regulatory

sandboxes, advising net-zero strategic project promoters and coordinating Net-Zero Industrial

partnerships. Also, a Net-Zero Industry group is to be created. Member States will shortly after the

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publication of the Act in the Official Journal of the EU receive a formal letter requesting the

appointment of a high-level representative to the Net-Zero Europe Platform. Commission services

kindly recommend that these nominations are considered in advance so that they can be formalised

swiftly.

The High-Level meeting on 23 May 2024 aims to underscore the political importance of the

Net-Zero Industry Act and provide strategic guidance for its implementation. To focus our

discussion and to better understand the priorities of the Member States, it is foreseen that

Member State representatives prepare and contribute via a short intervention on one of the

following questions.

Questions for interventions

1. Have you already identified a list of net-zero manufacturing projects or sectors for which

you deem the strategic project status to be of particular relevance and/or are you considering

existing or new industrial sites to apply for the Net-Zero Acceleration Valley status? How

could the setting up of strategic projects valleys be most usefully supported through joint

action at EU level?

NZIA puts forward the possibility for net-zero technology manufacturing projects to become

strategic projects and benefit from priority status at national level, shorter permitting time-limits

(9 – 12 months), as well as being focused on in the Net-Zero Platform (including with regards to

financing). The Act outlines the selection criteria for strategic projects: contribution to resilience

through added manufacturing capacity, positive supply-chain effects through innovation and in

particular by supporting skills development or SMEs, and contribution to the Union’s climate and

energy objectives through improved manufacturing practices. The Act also assures simplified

recognition for projects that receive Cohesion funding, Innovation Fund or IPCEI funding.

Member States have the possibility to refuse strategic project status if the project is for the

manufacturing of a technology that is not part of the general energy structure (i.e. energy mix) of

that particular Member State. The Act also lays down the rules for Member States to assess and

recognise projects as strategic projects. The assessment has to be carried out within one month

following the application of a project promoter. If an application is refused, the Commission may

provide an assessment upon the request of the project promoter, however, it will remain without

prejudice to the Member State’s decision. The Commission is working towards supporting the

operationalisation the application process and is required to set up and maintain a public registry

of net-zero strategic projects.

NZIA also provides Member States the possibility to designate “Net-Zero Acceleration Valleys”

in order to create and foster clusters of net-zero industrial activity and further streamline

administrative procedures. Notably, where Member States decide to designate a Valley, it is

mandatory to carry out environmental assessments of the geographic area under applicable

legislation, with the aim to streamline subsequent planning for individual projects. Each Valley

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shall be accompanied by a plan setting out concrete national measures to increase its attractiveness

(facilitate infrastructure, investments, reskilling and upskilling). Public investment in these valleys

may benefit from the maximum co-financing rates under ERDF, CF, JTF and ESF+. With regards

to permitting in Valleys, NZIA foresees that they should be assigned a dedicated Single point of

contact and make available templates indicating all required permits to simplify the process.

2. What financial tools are available and needed for the technologies or projects you (plan to)

support? How could the coordination of Union and national financing of net-zero

technology manufacturing projects be improved?

The Commission has put forward a number of initiatives to support the NZIA objectives in order

to make better use of existing funding instruments and allow for further flexibility in the provision

of state aids by Member States. NZIA encourages Member States to spend 25% of their annual

ETS revenues in line with NZIA objectives. Moreover, the Platform shall concretely advise NZIA

strategic projects on how they can complete their financing, taking into account public and private

sources. The Platform will examine bottlenecks and Union-wide financial needs of net-zero

strategic projects and facilitate the acceleration of public investments in net-zero manufacturing

projects. STEP (Strategic Technologies for Europe Platform) and the Temporary Crisis and

Transition Framework (TCTF) are further regulatory frameworks that were developed to make

more financing available for net-zero projects. Both rely on a strong collaboration between the

Commission and Member States, for example with respect to Member States re-programming their

cohesion funds to make use of new opportunities for new net-zero investments enabled through

STEP, and with respect to Member States making use of the opportunities that the TCTF section

2.8 on investments in certain clean technologies provides. These technologies are namely batteries,

solar panels, wind turbines, heat-pumps, electrolysers and carbon capture and storage.

STEP has the objective of supporting the development or manufacturing of critical technologies

throughout the Union, as well as safeguarding and strengthening their respective value chains. Net-

zero technologies are explicitly mentioned in the STEP Regulation as part of the STEP objectives.

The STEP Regulation amends the European Regional Development Fund and Cohesion Fund

Regulation – and in similar way the Regulations on the European Regional Development Fund,

the Just Transition Fund - with maximum co-financing rates for dedicated priorities to support the

STEP objectives of 100%”. Managing authorities may apply (at their own discretion) a high co-

funding rate to support net-zero value chains in their territory.

The TCTF, adopted in 2023, allows Member States to provide support to ensure that strategic

investments in net-zero technologies take place in Europe. The TCTF allows temporarily (until

31st December 2025) flexibility for such support in section 2.8 of the TCTF, which covers

productive investments in certain essential clean technologies, their key components and critical

raw materials. This allows Member States to provide quick support based on schemes or, to match

in individual cases public support available in other third countries to avoid that such investments

are diverted away from Europe.

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3. Do you have experiences and best practices to share on applying non-price criteria in public

procurement, auctions or ‘other subsidy schemes’? How could the implementation of the

relevant NZIA provisions be facilitated?

The NZIA supports the demand for net-zero technology products by introducing an obligation to

use non-price criteria in public procurement, in auctions for renewable energies and in subsidy

schemes to support the acquisition of net-zero final products. Non-price criteria feature

environmental sustainability, resilience, and further aspects like e.g. cybersecurity or energy

system integration. The Net-Zero Europe Platform will play a role in implementing those

provisions, e.g. through sharing best practices.

While some authorities already have ample experience in applying non-price criteria, the

obligation to do so is novel. Co-legislators assigned the Commission with developing

Implementing Acts to facilitate the application of the non-price criteria. Any experiences and best

practices in your Member States are a valuable input to improve the broad implementation of the

new NZIA non-price criteria.

Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË – Tel. +32 22991111

EUROPEAN COMMISSION

Thierry Breton

Member of the Commission

Brussels

Mr Tiit RIISALO

Minister of Economic Affaires and

Information Technology Suur-

Ameerika 1

EE - 10122 Tallinn

Dear Minister,

Subject: Invitation to the High-level Meeting in anticipation of the Net-Zero

Industry Act and the Net-Zero Europe Platform

As a cornerstone of the Green Deal Industrial Plan, the Net-Zero industry Act establishes

a streamlined regulatory framework to strengthen the resilience and competitiveness of

net-zero technology manufacturing in Europe. This framework will accelerate progress

toward the EU 2030 climate and energy objectives while enhancing competitiveness within

our industries and contributing to bolstering the security and sustainability of Europe's

energy system.

In anticipation of the Net-Zero Industry Act’s publication in the Official Journal of the

European Union, expected in July 2024, and with a view to a swift implementation of this

framework, I would like to invite you to a Ministerial meeting in Brussels on 23 May from

14:30 to 17:00, MANS Charlemagne, 170 Rue de la Loi Brussels, ahead of the

COMPET Council.

The meeting will aim at identifying priorities for a timely and successful implementation

of the Net-Zero Industry Act and the Net-Zero Europe Platform. Please find attached to

this invitation a background document with guiding questions for the discussion. I would

kindly ask you to confirm your attendance no later than 6 May 2024 at 12:00 CET via

[email protected].

Yours sincerely,

Thierry Breton

High-level meeting in anticipation of the Net-Zero Industry Act

and the Net-Zero Europe Platform

Agenda

23 May 2024, 14:30-17:00

Room MANS, Charlemagne, 170 Rue de la Loi

Translation avalable EN, FR, DE

Time Item Speaker

14:30 – 14:50 OPENING

Introductory remarks Thierry Breton, Commissioner for the Internal

Market

Opening remarks BE Presidency of the Council

14:50 – 15:20 INDUSTRY AND EUROPEAN PARLIAMENT VIEWS

Contributions from the Rapporteur

on NZIA and representatives of the

European net-zero industry value-

chains on main barriers, competitive

advantages and impact of NZIA

CEO Vestas (tbc)

CEO Fronius (tbc)

CEO Salzgitter (tbc)

MEP Christian Ehler

15:20 – 16:50 DISCUSSION WITH MEMBER STATES MINISTERS

Intervention by Kerstin Jorna, Director-General for Internal Market, Industry,

Entrepreneurship and SMEs

Have you already identified a list of net-zero manufacturing projects or sectors for which you

deem the strategic project status to be of particular relevance and/or are you considering

existing or new industrial sites to apply for the Net-Zero Acceleration Valley status? How

could the setting up of strategic projects and valleys be most usefully supported through joint

action at EU level?

Intervention by the European Investment Bank

What financial tools are available and needed for the technologies or projects you (plan to)

support? How could the coordination of Union and national financing of net-zero technology

manufacturing projects be improved?

Intervention by Ditte Juul Jørgensen, Director-General for Energy

Do you have experiences and best practices to share on applying non-price criteria in public

procurement, auctions or ‘other subsidy’ schemes? How could the implementation of the

relevant NZIA provisions be facilitated?

16:50 – 17:00 CONCLUSION

Conclusions and next steps Thierry Breton, Commissioner for the Internal

Market

Group photo