Letter

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

Office: BREY 11/055 – Tel. direct line +32 229-89097

EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR INTERNAL MARKET, INDUSTRY, ENTREPRENEURSHIP

AND SMES

The Director-General

DIRECTORATE-GENERAL FOR ENERGY The Director-General

Brussels GROW/DG/sbn/i.3 (2024)4772229

NOTE TO THE ATTENTION OF

EU DIRECTOR-GENERALS OF MINISTRIES OF ECONOMY AND MINISTRIES OF ENERGY

Subject: Implementation of the Net-Zero Industry Act

Dear Director-General,

The Net-Zero Industry Act (‘NZIA’) entered into force on 29 June 20241. As a central pillar

of the Green Deal Industrial Plan, NZIA aims to scale up the manufacturing of net-zero

technologies in the European Union. As such, it will help us achieve the EU 2030 climate

and energy objectives, while enhancing the competitiveness of net-zero industries and the

security of Europe’s energy system.

The Commission looks forward to working closely with Member States on implementing

NZIA swiftly and thoroughly. The High-level event anticipating the Net-Zero Industry Act

held on 23 May 2024 showed to what extent this sense of urgency is widely shared among

Member States and industry alike.

NZIA is a token of our collective conviction: for the EU to fully harness the ongoing energy

transition, it must remain a major producer of net-zero technologies, and it can only do so

through a forceful policy framework. This is why NZIA introduces an ambitious goal for

net-zero manufacturing capacity: to meet at least 40% of the EU’s annual deployment needs

by 2030. By doing so, NZIA provides predictability and long-term signals to manufacturers

and investors. It will empower European industry to scale the net-zero business case.

In Annex 1 to this letter, we outline the most immediate implementation deliverables and

present a way forward. We would be grateful to receive your feedback on a limited set of

issues, namely those highlighted in bold, by 12 July 2024.

Yours faithfully,

Kerstin Jorna Ditte Juul Jørgensen

Annexes: 1. Implementation deliverables and way forward

2. NZIA Strategic Project Application process

3. Summary of High-Level event on 23 May

c.c.: Attachés of Council working party on industry and energy

(1) Regulation - EU - 2024/1735 - EN - EUR-Lex (europa.eu)

(E- signed) (E- signed)

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Annex 1: Implementation deliverables and way forward

1. Overview of the most immediate implementation deliverables

Here below you may find the most immediate implementation aspects. In the following

section, these are described in more detail and a way forward is presented.

For Member States:

- Designation of Single Points of Contact (Article 6(1)) by 29 December 2024 (6

months as of entry into force).

For the Commission:

- Convening of the first formal meeting of the Net-Zero Europe Platform, in Q4 2024;

- Support to Member States regarding strategic project applications, by proposing

and putting in place a harmonised process, shortly following entry into force;

- On public procurement, providing orientation to Member States and relevant

procurement authorities on the application of requirements that become mandatory

with the entry into force, and those that will become mandatory following the

adoption of relevant implementing acts, notably on the environmental sustainability

criterion (Article 25(5)) and on the resilience criterion (Article 29(2));

- Adoption of all relevant implementing and delegated acts by the timelines foreseen

in the Act. For those that do not have specific deadlines, the Commission will work

towards the speediest adoption possible.

2. Way forward on the most immediate implementation deliverables

2.1. Single Points of Contact

NZIA Article 6(1) requires that Member States designate the Single Point of Contact within

6 months of entry into force. Single Points of Contact are responsible for facilitating and

coordinating the entire permit-granting process for projects in the scope of NZIA. This day

will be very fast approaching and we suggest that you start preparing as soon as possible.

Designating a Single Point of Contact and making it fully operational is essential to ensure

compliance with NZIA, in particular with the different tasks and obligations set out in

Article 6 on facilitating and coordinating the permit-granting process, Article 7 on online

accessibility of information, Article 9 and 16 on the duration of the permit-granting process,

Article 10 on environmental assessments and authorisations, as well as Article 18 in the

context of the designation of a Net-Zero Acceleration Valley.

Please keep in mind the possibility to sign up to the Technical Support Instrument (‘TSI’) to

get EU funded support on streamlining permitting processes, including further assistance on

developing your Single Point of Contact. The 2025 TSI call will be open until 31 October

and has a dedicated flagship covering NZIA (ESTER - Economic Security in Technologies

and Resources)2.

2.2. Strategic Project application process

NZIA provides the possibility for net-zero technology manufacturing project promoters to

apply for strategic project status. Please note that net-zero strategic projects as referred to in

this letter only covers those that are net-zero technology manufacturing projects (Carbon,

Capture and Storage projects will not be part of the initial strategic project application

process3). The Regulation outlines the corresponding benefits (Article 15-16), the

application and recognition process (Article 14) and the selection criteria (Article 13).

(2) https://reform-support.ec.europa.eu/tsi-2025-flagship-economic-security-technologies-and-resources_en

(3) A complementing letter will be provided to you regarding the deployment objectives of operational CO2

injection capacity by 2030 and the recognition of net-zero strategic projects CO2 storage projects in the

context of development of Industrial Carbon Management solutions for EU industries (see Art. 20-24

NZIA and COM(2024) 62 final).

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Following successful application and recognition, net-zero strategic projects will benefit

from priority status at national level, faster permitting and advice - through the Net-Zero

Europe Platform - on access to finance.

Following the Act’s entry into force and as a follow-up to the conclusions of the High-Level

Meeting of 23 May 2024, the Commission will very soon put in place an application process

to operationalise the strategic project status.

This will involve the following elements:

- A pre-set application form on a dedicated website, allowing project promoters to send

their application to the Member State authorities in charge of assessing it.

- Putting in place an application process (visualised in Annex 2) that ensures user-friendly

and secure document transmission; ensures that only ‘complete’ applications reach the

Member States; provides a harmonised approach to Member States and project

promoters; and which reduces the administrative burden of Member State authorities.

The Commission will facilitate the process and will not have access to the complete

application to the Member States, unless it is required to interact with the applicant or

Member States as foreseen in the Regulation. In addition, the Commission will issue a

short, practical guidance for Member State authorities and another one for project

promoters on how to use this system. The Commission will organise a webinar with

Member States to explain the process, as well as promote via relevant communication

channels the possibility for project promoters to apply.

- An update of the dedicated Commission website with information on the strategic

projects, the application process and possible links to financing portals such as the

InvestEU Advisory Hub.

In turn, Member States are kindly requested to:

- Provide the contact information (name, department, ministry, e-mail address, telephone

number, EU Login user ID and EU Login e-mail address) of the national contact point to

which the net-zero strategic project applications shall be sent (this is not the same as the

NZIA ‘single point of contact’). Please kindly note that to be fully operational, the

national contact point will need to create an EU Login account by using the self-

registration page to create an account: https://webgate.ec.europa.eu/cas/login. If needed,

a tutorial is also available.4

- Please kindly take note of the visualised application process in Annex 2 to this letter.

This process is also currently being put in place for a similar strategic project application

process under the Critical Raw Materials Act.

➢ Please communicate your national contact point that will be in charge of

receiving NZIA strategic project applications and inform of any comments on

the proposed application process by 12 July 2024 to [email protected].

2.3. Public Procurement

NZIA Article 25 on public procurement introduces three sets of qualitative non-price

criteria: environmental sustainability, resilience, and an additional criterion to be chosen

from cybersecurity, social considerations, and the ability to deliver. While the requirement to

apply the criteria on environmental sustainability and resilience takes effect with the

adoption of the related implementing acts, the additional criterion should be applied from the

entry into force of NZIA onwards.

Applying the non-price criteria as soon as possible is crucial. The Commission

Recommendation5 and Guidance6 to Member States on auction design for renewable energy

includes guidelines on the application of non-price criteria, including the ones related to

social and cyber-security aspects, that are also relevant for procurement procedures. The

Commission services will support you on the application of those criteria.

(4) https://webgate.ec.europa.eu/cas/manuals/EU_Login_Tutorial.pdf.

(5) C(2024) 2650 final

(6) SWD(2024) 300 final

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In addition, and in line with the European Solar7 and Wind8 charters recently signed by

many Member States and the Commission, we strongly encourage you to apply the criteria

on environmental sustainability and resilience already before the related implementing acts

are published. Latest available data9 already shows that for solar photovoltaic modules and

cells EU imports from a single source of supply, in this case from China, account for

approximately 90% of EU supply.

The Community of Public Buyers for Sustainable Solar PV supports public buyers to

improve the quality, sustainability and financial returns of their photovoltaic project. It also

provides information to apply sustainability criteria to the procurement of photovoltaic

technologies.

The Commission further aims to assist procuring authorities in applying NZIA, making use

of existing collaboration frameworks and tools. On 28 June 2024, a meeting with

procurement professionals from the Member States (EXPP group) took place to discuss the

implementation of the public procurement article. For the abovementioned implementing

acts, the Commission is striving to deliver them within the fastest timeframe possible. On the

side of the Member States, we would ask you to make sure your contracting authorities are

aware of the new rules taking effect.

The Commission will assist you in applying non-price criteria as soon as possible. We count

on you to use your network to make purchasing authorities aware of the new rules and

recommend an ambitious approach given the urgencies faced.

2.4. Net-Zero Europe Platform

NZIA establishes the Net-Zero Europe Platform (Articles 38-39), the Act’s governance body

which will oversee implementation. To help achieve 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. The high-level representatives, at Director-General level, will

meet at least annually to monitor the progress of implementation and agree on objectives and

a work plan. The first high-level meeting of the Platform will take place in Q4 of 2024.

The Platform’s work is based on exchanges of best practices, as well as coordinating and

monitoring the implementation of relevant provisions. As required by NZIA Article 39(6),

the first sub-group to be established will cover Net-Zero Industry Academies. Additional

sub-groups may be set up on the basis of Member States’ requests, in particular following

the first formal high-level meeting of the Platform. A first such request was made at the

High-Level meeting on 23 May, for a sub-group on Net-Zero Acceleration Valleys. In

parallel, the Commission will advance the preparation for setting up a Net-Zero Industry

group, consisting of industry representatives, and the Net-Zero Regulatory Burden Scientific

Advisory Group, made up of independent scientists.

We kindly ask you to inform us of the names of your appointed high-level representative and

deputy high-level representative.

➢ Please communicate your high-level representatives (name, position, e-mail

address) to the Net-Zero Europe Platform by 12 July 2024 to GROW-

[email protected].

3. Questions on priorities regarding NZIA technologies

Finally, to effectively plan ahead and for effective implementation, we would appreciate

feedback on Member States' priorities. We kindly ask that a short questionnaire (3 questions)

be filled out to flag your national priorities on specific technologies and the reasons for these

choices. The answers are dealt with confidentially and may be presented in an anonymised

and aggregated manner at the first High-Level Net-Zero Europe Platform meeting.

➢ Please fill out the EUSurvey on Member State priorities on net-zero technologies

by 12 July 2024: https://ec.europa.eu/eusurvey/runner/NZIA-QforMS

(7) https://energy.ec.europa.eu/topics/renewable-energy/solar-energy/european-solar-charter_en

(8) https://energy.ec.europa.eu/news/new-wind-charter-and-national-wind-pledges-underline-ambition-wind-

power-europe-2023-12-19_en

(9) Eurostat (2024) ext-go_detail tables, ds-045409, Database - Eurostat (europa.eu)

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

Office: BREY 11/055 – Tel. direct line +32 229-89097

Annex 2

Strategic projects as referred to in this letter only covers those that are net-zero technology manufacturing projects,

CCS projects will not be part of the initial strategic project application process

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

Office: BREY 11/055 – Tel. direct line +32 229-89097

Annex 3

Summary of the High-level meeting in anticipation of the Net-Zero

Industry Act and the Net-Zero Europe Platform

23 May 2024, 14:30 – 17:00

On 23 May 2024, European Commissioner for Internal Market Thierry Breton

convened a High-Level Meeting with Member States in anticipation of the entry into force

of the Net-Zero Industry Act (“NZIA") and the Net-Zero Europe Platform. Addressing the

ministers, state secretaries and officials present, Commissioner Breton highlighted the

importance of NZIA, with the focus now shifting to its effective implementation and the

need to mobilise all EU tools – single market, trade, competition, budget – to promote

European clean tech, build smart partnerships and protect a level playing-field. In his

opening remarks, Johan Hanssens of the Belgian Presidency of the Council of the EU

stated that the speed at which NZIA was negotiated underlined its importance for the EU and

that it was an excellent example of inter-institutional cooperation. He concluded by stating

that NZIA marks a fundamental step in industrial policy and in the development of a new

competitiveness deal, setting the stage for the next legislative term.

Invited industry leaders from the wind and solar photovoltaic (PV) manufacturing

industries, and energy-intensive industries, shared their views on the Act’s foreseen positive

impact on their business case. They welcomed the aim of creating a level playing field

across the entire value chain through reducing regulatory burden, facilitating shorter

permitting, and simplifying procedures. The provisions on public procurement and

auctions were coined as the potentially most impactful of the Act, though it was underlined

that in line with the European Solar and Wind Charters these provisions needed to be applied

by Member States with urgency.

Member States underlined the importance to implement NZIA in a fast and harmonised

manner as well as to build on the strengths of countries in different parts of the net-zero

value chains. They also noted that the permitting provisions have a strong signalling effect

and were of high importance in terms of investment certainty, increasing predictability and

for simplifying and streamlining procedures. Several Member States informed that they plan

to or are currently reviewing permitting legislation, including environmental legislation, to

streamline processes. Member States also anticipated the establishment of the Single Points

of Contact, which are required to be operational within 6 months of the Act’s entry into

force. Certain Member States highlighted existing initiatives that are similar in function to

the Single Point of Contact, notably also stressing the importance of digitalising the

processes. It was also stated that the exchange of best practices in the framework of the Net-

Zero Europe Platform would be strongly welcomed. Several Member States expressed

their support for establishing Net-Zero Acceleration Valleys and expressed strong interest

to explore the opportunities these might bring, suggesting also the creation of a specific

working group within the Net-Zero Europe Platform.

On financing, the representative of the European Investment Bank (EIB) underlined the

bank’s commitment as EU Climate Bank to support investments in net-zero manufacturing

capacities. Venture debt and the partnership with Breakthrough Energy (and the

Commission) to fund joint projects on climate technologies have been mentioned as

examples of effective instruments. Several Member States underlined the importance of

availability of financial resources to support NZIA objectives. Combining national resources

with EU ones, provision of support and information to potential applicants about available

funding opportunities, as well as the need to ensure and explore cohesion among Member

States and regions, are among the main issues mentioned during the discussion. The meeting

was also attended by the European Bank for Reconstruction and Development (EBRD) and

by representatives of national promotional banks and ELTI (European Long-Term Investors

Association).

On access to markets, several Member States reported that they already have experience

with non-price criteria, notably in the area offshore wind auctions and others that they would

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implement them already ahead of time notably for wind, heat pumps and solar PV. Member

States noted that the impact of non-price criteria on cost and efficiency should also be

considered, that best practice sharing is crucial to ensure effective administration, also for

SMEs. Member States also stressed the significance of the resilience criterion and called

for clearly defined and verifiable criteria.

Around the entry into force of NZIA at the end of June, the Commission will make

operational the system for granting strategic project status. Strategic projects have

additional benefits under NZIA such as priority status at national level, faster permitting, and

are focused on in the Net-Zero Europe Platform, also with regards to financing needs. The

first formal meeting of the Net-Zero Europe Platform will take place in Q4 2024 as part of

the next Commission mandate. Member States highlighted the importance of working

together in the framework of the Platform.

Electronically signed on 01/07/2024 09:30 (UTC+02) in accordance with Article 11 of Commission Decision (EU) 2021/2121