Net-Zero Industry Act NZIA

Article 1 — Subject matter

1. The general objective of this Regulation is to improve the functioning of the internal market by establishing a framework in order to ensure the Union’s access to a secure and sustainable supply of net-zero technologies, including by scaling up the manufacturing capacity of net-zero technologies and their supply chains to safeguard their resilience while contributing to achieving the Union’s climate targets and climate neutrality objective, as defined in Regulation (EU) 2021/1119, with a view to the decarbonisation of the Union’s economy and society, and by contributing to quality jobs in net-zero technologies, and thereby also improving the competitiveness of the Union. 2. To achieve the general objective referred to in paragraph 1, this Regulation lays down measures aiming to: (a) lower the risk of supply disruptions related to net-zero technologies likely to distort competition and fragment the internal market, in particular by identifying and supporting the scale-up of the manufacturing capacity of net-zero technologies and their supply chains; (b) establish a Union market for CO2 storage services; (c) encourage demand for sustainable and resilient net-zero technologies through public procurement procedures, auctioning and other forms of public intervention; (d) enhance skills through the support of the Academies, thereby safeguarding and creating quality jobs; (e) support innovation through the creation of net-zero regulatory sandboxes, coordination of research and innovation activities through the Strategic Energy Technologies Plan Steering Group, as well as through the use of pre-commercial procurement and public procurement of innovative solutions; (f) improve the Union’s ability to monitor and mitigate supply risks related to net-zero technologies.

Article 2 — Scope

1. With the exception of Articles 33 and 34 of this Regulation, which apply to innovative net-zero technologies and other innovative technologies, this Regulation applies to net-zero technologies. Critical raw materials falling under the scope of Regulation (EU) 2024/1252 are excluded from the scope of this Regulation. 2. In the case of integrated production facilities that cover the production of materials falling both under the scope of Regulation (EU) 2024/1252 and of this Regulation, it shall be the facilities’ final product that determines which Regulation applies. 3. With the exception of Articles 5, 25, 26 and 28, this Regulation applies to energy-intensive industry decarbonisation projects that are part of the supply chain of a net-zero technology and that reduce emission rates of CO2-eq of industrial processes significantly and permanently to an extent which is technically feasible.