Legal provisions of COM(2023)161 - Establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act)

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier COM(2023)161 - Establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net ...
document COM(2023)161 EN
date June 13, 2024


CHAPTER I

SUBJECT MATTER, SCOPE AND DEFINITIONS

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.

Article 3

Definitions

For the purposes of this Regulation, the following definitions apply:

(1)‘net-zero technologies’ means the technologies listed in Article 4 where they are final products, specific components or specific machinery primarily used for the production of those products;

(2)‘component’ means a part of a net-zero technology final product that is manufactured and traded by a company, including processed material;

(3)‘renewable energy technologies’ means technologies that produce energy from renewable sources;

(4)‘energy from renewable sources’ means energy from renewable sources or renewable energy as defined in Article 2, second paragraph, point (1), of Directive (EU) 2018/2001;

(5)‘energy storage’ means electricity and thermal storage as well as other forms of storage that are used to store fossil-free energy;

(6)‘renewable fuels of non-biological origin’ means renewable fuels of non-biological origin as defined in Article 2, second paragraph, point (36), of Directive (EU) 2018/2001;

(7)‘sustainable alternative fuels’ means sustainable aviation fuels, synthetic low- carbon aviation fuels or hydrogen for aviation as defined in Article 3, point (7), (13) or (17) of Regulation (EU) 2023/2405 destined for the aviation sector or fuels destined for the maritime sector as identified in accordance with criteria defined in Article 10(1) and (2) of Regulation (EU) 2023/1805;

(8)‘transformative industrial technologies for decarbonisation’ means the scaling up of manufacturing capacity for transformative industrial technologies that are used to significantly and permanently reduce emission rates of CO2-eq of a commercial facility of an energy-intensive business, as defined in Article 17(1), point (a), of Council Directive 2003/96/EC (50), in the steel, aluminium, non-ferrous metals, chemicals, cement, lime, glass, ceramics, fertilisers, as well as pulp and paper sectors to an extent which is technically feasible;

(9)‘biotech climate and energy solutions’ means technologies anchored in the use of microorganisms or biological molecules such as enzymes, resins or biopolymers, which are able to reduce CO2 emissions by replacing energy-intensive fossil or chemical-based inputs in industrial manufacturing processes relevant for, inter alia, carbon capture, production of biofuels and production of bio-based materials, in line with the circular economy principles;

(10)‘primarily used’ means final products and specific components which are essential for the production of net-zero technologies, as set out in the Annex, or final products, specific components and specific machinery which are essential for the production of net-zero technologies on the basis of evidence provided to a national competent authority by the project promoter, with the exception of energy-intensive industry decarbonisation projects, for which such evidence is not required;

(11)‘processed material’ means a material that has been processed in such a way to be suitable for a specific function in a net-zero technology supply chain, with the exception of critical raw materials defined pursuant to Article 4 of Regulation (EU) 2024/1252;

(12)‘innovative net-zero technologies’ means net-zero technologies that comprise genuine innovations which are not currently available on the market and that are advanced enough to be tested in a controlled environment;

(13)‘other innovative technologies’ means energy-related or climate-related technologies with a proven potential to contribute to the decarbonisation of industrial or energy systems and to reduce strategic dependencies that comprise genuine innovations that are not currently available on the Union market and that are advanced enough to be tested in a controlled environment;

(14)‘pre-commercial procurement’ means the procurement of net-zero technologies in a pre-commercial phase, involving risk-benefit sharing under market conditions and competitive development in phases;

(15)‘public procurement of innovative solutions’ means a public procurement procedure for which contracting authorities or contracting entities act as a launch customer for net-zero technologies, which may include conformity testing;

(16)‘net-zero technology manufacturing project’ means a planned commercial facility or an extension or repurposing of an existing facility to manufacture net-zero technologies, or an energy-intensive industry decarbonisation project;

(17)‘energy-intensive industry decarbonisation projects’ means the construction or conversion of the commercial facility of an energy-intensive business as defined in Article 17(1), point (a), of the Directive 2003/96/EC in the steel, aluminium, non-ferrous metals, chemicals, cement, lime, glass, ceramics, fertilisers, as well as pulp and paper sectors that are part of the supply chain of a net-zero technology and that are to reduce emission rates of CO2-eq of industrial processes significantly and permanently to an extent which is technically feasible;

(18)‘net-zero strategic project’ means a net-zero technology manufacturing project, a CO2 capture project, a CO2 storage project or a CO2 transport infrastructure project located in the Union that a Member State has recognised as a net-zero strategic project pursuant to Articles 13 and 14;

(19)‘permit-granting process’ means a process that covers all relevant permits to build, expand, convert and operate net-zero technology manufacturing projects and net-zero strategic projects, including building, chemical and grid connection permits, and environmental assessments and authorisations where required, and encompassing all applications and procedures from the acknowledgement that the application is complete to the notification of the comprehensive decision on the outcome of the procedure by the single point of contact concerned, as well as with regard to CO2 geological storage, the storage permit-granting process which concerns the processing of all necessary permits for surface installations requested to operate a storage site, including building permits and pipe authorisations, and the environmental authorisation for the injection and storage of CO2 completed in accordance with Directive 2009/31/EC;

(20)‘comprehensive decision’ means the decision or set of decisions taken by Member State authorities that determine whether a project promoter is authorised to implement a net-zero technology manufacturing project, without prejudice to any decision taken in the context of an appeal procedure;

(21)‘project promoter’ means any undertaking or consortium of undertakings developing a net-zero technology manufacturing project or a net-zero strategic project;

(22)‘net-zero regulatory sandbox’ means a scheme that enables undertakings to test innovative net-zero technologies and other innovative technologies in a controlled real-world environment, under a specific plan, developed and monitored by a competent authority;

(23)‘public procurement procedure’ means either of the following:

(a)any type of award procedure covered by Directive 2014/24/EU for the conclusion of a public contract or Directive 2014/25/EU for the conclusion of a supply, works and service contract;

(b)a procedure for the award of works or a service concession covered by Directive 2014/23/EU;

(24)‘contracting authority’ means, in the context of public procurement procedures, a contracting authority as defined in Article 6 of Directive 2014/23/EU, Article 2(1), point (1), of Directive 2014/24/EU and Article 3 of Directive 2014/25/EU;

(25)‘contracting entity’ means, in the context of public procurement procedures, a contracting entity as defined in Article 7 of Directive 2014/23/EU and Article 4 of Directive 2014/25/EU;

(26)‘contract’ means, in the context of public procurement procedures, public contracts as defined in Article 2(1), point (5), of Directive 2014/24/EU, supply, works and service contracts as defined in Article 2, point (1), of Directive 2014/25/EU, and concessions as defined in Article 5, point (1), of Directive 2014/23/EU;

(27)‘auction’ means a mechanism for competitive tendering procedures to support the production or consumption of energy from renewable sources that does not fall under Directive 2009/81/EC of the European Parliament and of the Council (51) or Directive 2014/23/EU, 2014/24/EU or 2014/25/EU;

(28)‘CO2 injection capacity’ means the annual amount of CO2 that can be injected in an operational geological storage site, permitted under Directive 2009/31/EC, with the purpose of reducing emissions or increasing carbon removals, in particular from large scale industrial installations, and which is measured in tonnes per annum;

(29)‘CO2 transport infrastructure’ means the network of pipelines, including associated booster stations, for the transport of CO2 to the storage site, as well as any ships, road or rail transport modes, including liquefaction devices and temporary storage facilities if needed, for the transport of CO2 to the harbour facilities and storage site;

(30)‘energy system integration’ means solutions for the planning and operation of the energy system as a whole, across multiple energy carriers, infrastructures, and consumption sectors, by creating stronger links between them with the objective of delivering fossil-free, flexible, reliable and resource-efficient energy services, at the least possible cost for society, the economy and the environment;

(31)‘net-zero Industrial Partnerships’ means a commitment between the Union and a third country to increase cooperation related to net-zero technologies that is established through a non-binding instrument setting out concrete actions of mutual interest;

(32)‘first-of-a-kind’ means a new or substantially upgraded net-zero technology facility which provides innovation with regard to the manufacturing process of the net-zero technology that is not yet substantively present or committed to be built within the Union;

(33)‘manufacturing capacity’ means the total amount of output capacity of the net-zero technologies produced in a manufacturing project or, where a manufacturing project produces specific components or specific machinery primarily used for the production of such products rather than the final products themselves, the output capacity of the final products for which such components or specific machinery are produced.

Article 4

List of net-zero technologies

1. The net-zero technologies within the scope of this Regulation shall be:

(a)solar technologies, including PV, solar thermal electric and solar thermal technologies;

(b)onshore wind and offshore renewable technologies;

(c)battery and energy storage technologies;

(d)heat pumps and geothermal energy technologies;

(e)hydrogen technologies, including electrolysers and fuel cells;

(f)sustainable biogas and biomethane technologies;

(g)CCS technologies;

(h)electricity grid technologies, including electric charging technologies for transport and technologies to digitalise the grid;

(i)nuclear fission energy technologies, including nuclear fuel cycle technologies;

(j)sustainable alternative fuels technologies;

(k)hydropower technologies;

(l)renewable energy technologies, not covered under the previous categories;

(m)energy system-related energy efficiency technologies, including heat grid technologies;

(n)renewable fuels of non-biological origin technologies;

(o)biotech climate and energy solutions;

(p)transformative industrial technologies for decarbonisation not covered under the previous categories;

(q)CO2 transport and utilisation technologies;

(r)wind propulsion and electric propulsion technologies for transport;

(s)nuclear technologies not covered under previous categories.

2. Paragraph 1 shall be without prejudice to a Member State's right to determine its choice between different energy sources and the general structure of its energy supply.

3. Paragraph 1 shall be without prejudice to the allocation of Union funding, in particular on eligibility or award criteria, as adopted in accordance with the appropriate procedures, or on Union support through the EIB.

CHAPTER II

ENABLING CONDITIONS FOR NET-ZERO TECHNOLOGY MANUFACTURING

Contents

SECTION I - Benchmarks



Article 5

Benchmarks

1. The Commission and Member States shall support net-zero manufacturing projects in accordance with this Chapter in order to ensure the reduction of strategic dependencies in the Union of net-zero technologies and their supply chains by reaching a manufacturing capacity for those technologies of:

(a)a benchmark of at least 40 % of the Union’s annual deployment needs for the corresponding technologies necessary to achieve the Union’s 2030 climate and energy targets;

(b)an increased Union share for the corresponding technologies with a view to reaching 15 % of world production by 2040 on the basis of monitoring pursuant to Article 42, except where the increased Union manufacturing capacity would be significantly higher than the Union’s deployment needs for the corresponding technologies necessary to achieve the Union’s 2040 climate and energy targets.

SECTION II - Streamlining administrative and permit-granting processes



Article 6

Single points of contact

1. By 30 December 2024 Member States shall establish or designate one or more authorities as single points of contact at the relevant administrative level. Each single point of contact shall be responsible for facilitating and coordinating the permit-granting process for net-zero technology manufacturing projects, including for net-zero strategic projects, and for providing information on streamlining the administrative processes in accordance with Article 7, including information on when an application is considered to be completed in accordance with Article 9(10).

2. Where a Member State establishes or designates more than one single point of contact pursuant to paragraph 1 of this Article the Member State shall provide tools to help project promoters identify the appropriate established or designated contact point on the online web page set up in accordance with Article 7.

3. A single point of contact established or designated pursuant to paragraph 1shall be the sole point of contact for the project promoter in the permit-granting process for a net-zero technology manufacturing project, including a net-zero strategic project. It shall coordinate and facilitate the submission of all relevant documents and information and shall notify the project promoter of the outcome of the comprehensive decision.

4. Project promoters shall be allowed to submit any documents relevant to the permit-granting process in electronic form.

5. The competent authorities shall ensure that any relevant studies carried out, or permits or authorisations issued, for a given project are taken into account and that no duplicate studies, permits or authorisations are required, unless otherwise required under Union or national law.

6. Member States shall ensure that applicants have easy access to information on and procedures for the settlement of disputes concerning the permit-granting process including, where applicable, alternative dispute resolution mechanisms, if such procedures are provided for by national law.

7. Member States shall ensure that the single point of contact and all competent authorities responsible for any step along the permit-granting processes, including all procedural steps, have a sufficient number of qualified staff and sufficient financial, technical and technological resources necessary, including, where appropriate, for up- skilling and re-skilling, for the effective performance of their tasks under this Regulation.

8. The Platform referred to in Articles 38 and 39 shall periodically discuss the implementation of this Section and Articles 15 and 16 and share best-practices for organising single points of contact.

9. The authorities involved in the permit-granting process and other authorities concerned shall specify and make available to the single point of contact concerned, the requirements and extent of information requested of a project promoter before the permit-granting process commences.

Article 7

Online accessibility of information

Member States shall provide access to the following information on processes relevant to net-zero technology manufacturing projects, including net-zero strategic projects, online and in a centralised and easily accessible manner:

(a)the single points of contact referred to in Article 6(1);

(b)the permit-granting process, including information on dispute settlement;

(c)financing and investment services;

(d)funding possibilities at Union or Member State level;

(e)business support services, including but not limited to corporate tax declaration, local tax laws or labour law.

Article 8

Accelerating implementation

Member States shall provide administrative support to net-zero technology manufacturing projects located on their territory, to facilitate their timely and effective implementation, paying particular attention to SMEs involved in the projects, including by providing:

(a)assistance with regard to compliance with applicable administrative and reporting obligations;

(b)assistance to project promoters to inform the public with the aim of increasing public acceptance of the project;

(c)assistance to project promoters along the permit-granting process, in particular for SMEs.

Article 9

Duration of the permit-granting process

1. The permit-granting process for net-zero technology manufacturing projects shall not exceed any of the following time limits:

(a)12 months for the construction or expansion of net-zero technology manufacturing projects with a yearly manufacturing capacity of less than 1 GW;

(b)18 months for the construction or expansion of net-zero technology manufacturing projects with a yearly manufacturing capacity of 1 GW or more.

2. The permit-granting process for net-zero technology manufacturing projects for which a yearly manufacturing capacity is not measured in GW, shall not exceed a time limit of 18 months.

3. Where energy-intensive industry decarbonisation projects, including when recognised as strategic projects, require the construction of several facilities or units in one site, the project promoter and the single point of contact may agree on splitting the project into several smaller projects for the purposes of complying with the applicable time limits.

4. Where an environmental impact assessment is required pursuant to Directive 2011/92/EU, the steps of the assessment referred to in Article 1(2), point (g)(i), of that Directive shall not be included in the duration of permit-granting process referred to in paragraphs 1 and 2 of this Article.

5. Where the consultation pursuant to Article 1(2), point (g)(ii), of Directive 2011/92/EU results in the need to supplement the environmental impact assessment report with additional information, the single point of contact may give the project promoter the opportunity to submit additional information. In that case, the single point of contact shall notify the project promoter of the date when the additional information is due, which shall be no less than 30 days from the date of the notification. The period between the deadline for providing additional information and the submission of that information shall not be counted towards the duration of the permit-granting process referred to in paragraphs 1 and 2 of this Article.

6. In exceptional cases, where the nature, complexity, location or size of the proposed net-zero technology manufacturing project or net-zero strategic project so requires, a Member State may once extend the time limits referred to in paragraphs 1, 2 and 7 of this Article and in Article 16(1) and (2) by a maximum of 3 months before their expiry and on a case-by-case basis.

7. Where a Member State considers that the proposed net-zero technology manufacturing project or net-zero strategic project raises exceptional risks for the health and safety of workers or of the general population, and where additional time is necessary to establish that measures to address identifiable risks have been put in place, it may extend the time limits referred to in paragraphs 1 and 2 of this Article and in Article 16 (1) and (2) by 6 months, within 6 months of the start of the permit-granting process.

8. In the application of paragraph 6 or 7, the single point of contact shall inform the project promoter in writing of the reasons for the extension and of the date when the comprehensive decision is expected.

9. The single point of contact referred to in Article 6(1) of this Regulation shall notify the project promoter of the date when the environmental impact assessment report referred in Article 5(1) of Directive 2011/92/EU is due, taking into account the organisation of the permit-granting process in the relevant Member State and the need to allow sufficient time to assess the report. The period between the deadline for providing the environmental impact report and the submission of that report shall not be counted towards the duration of the permit-granting process referred to in paragraphs 1 and 2 of this Article.

10. No later than 45 days from the receipt of the permit-granting application, the single point of contact concerned shall acknowledge that the application is complete or, if the project promoter has not sent all the information required to process the application, request the project promoter to submit a complete application without undue delay, specifying which information is missing. In the event that the submitted application is deemed to be incomplete for a second time, the single point of contact may, within 30 days of the second submission, make a second request for information. The single point of contact shall not request information in areas not covered in the first request for additional information and shall be entitled only to request further evidence to complete the identified missing information. The date of the acknowledgement of the completeness of the application from the single point of contact referred to in Article 6(1) shall serve as the start of the permit-granting process for that particular application.

11. No later than two months from the date of the receipt of the application, the single point of contact shall draw up, in close cooperation with other authorities concerned, a detailed schedule for the permit-granting process. That schedule shall start from the moment when the single point of contact acknowledges the completeness of the application. The schedule shall be published by the single point of contact on a free access website.

12. The time limits set in this Article and in Article 16 shall be without prejudice to obligations arising from Union and international law, and without prejudice to administrative appeal procedures and judicial remedies before a court or tribunal.

13. The time limits set in this Article and in Article 16 for any of the permit-granting processes shall be without prejudice to any shorter time limits set by Member States.

Article 10

Environmental assessments and authorisation

1. Where an environmental impact assessment is required pursuant to Articles 5 to 9 of Directive 2011/92/EU, the project promoter concerned may request, before submitting the application, an opinion from the single point of contact on the scope and level of detail of the information to be included in the environmental impact assessment report pursuant to Article 5(1) of that Directive. The single point of contact shall ensure that the opinion is issued as soon as possible and no later than 45 days from the date on which the project promoter submitted its request for an opinion.

2. Where the obligation to assess the effects on the environment arises simultaneously from any two or more of Directive 2000/60/EC, Directive 2001/42/EC of the European Parliament and of the Council (52), Directive 2008/98/EC, Directive 2009/147/EC, Directive 2010/75/EU, Directive 2011/92/EU, Directive 2012/18/EU or Directive 92/43/EEC, Member States shall ensure that a coordinated or joint procedures fulfilling all the requirements of those Union legislative acts are applied.

Under the coordinated procedure referred to in the first subparagraph, a competent authority shall coordinate the various individual assessments of the environmental impact of a particular project required by the relevant Union legislative acts.

Under the joint procedure referred to in the first subparagraph, a competent authority shall provide for a single assessment of the environmental impact of a particular project required by the relevant Union legislative acts. The application of the joint or coordinated procedure shall not affect the content of the environmental impact assessment.

3. Member States shall ensure that the competent authorities issue the reasoned conclusion referred to in Article 1(2), point (g)(iv), of Directive 2011/92/EU on the environmental impact assessment within 90 days of receiving all necessary information pursuant to Articles 5, 6 and 7 of that Directive and after completing the consultations referred to in Articles 6 and 7 of that Directive.

4. In exceptional cases, where the nature, complexity, location or size of the proposed project so requires, Member States may extend the time limit referred to in paragraph 3 by a maximum of 20 days, before its expiry and on a case-by-case basis. In that event, the single point of contact concerned shall inform the project promoter in writing of the reasons justifying the extension and of the deadline for its reasoned conclusion.

5. The timeframes for consulting the public concerned as referred to in Article 1(2), point (e), of Directive 2011/92/EU and the authorities referred to in Article 6(1) of that Directive on the environmental report referred to in Article 5(1) of that Directive shall not be longer than 85 days and, in accordance with article 6(7) of that Directive, not shorter than 30 days. In the cases falling under the second sub-paragraph of Article 6(4) of that Directive, that period shall be extended to a maximum of 90 days on a case-by-case basis.

6. Member States shall ensure that their competent authorities and other authorities designated pursuant to Article 6(1) of Directive 2011/92/EU have a sufficient number of qualified staff and sufficient financial, technical and technological resources necessary to fulfil their obligations under this Article.

Article 11

Planning

1. National, regional and local authorities responsible for preparing plans, including zoning, spatial plans and land use plans, shall consider including in such plans, where appropriate, provisions for the development of net-zero technology manufacturing projects, including net-zero strategic projects and, where appropriate, net-zero industry acceleration valleys, as well as the necessary infrastructure. Where considering to include such provisions, priority shall be given to artificial and built surfaces, industrial sites and brownfield sites. To facilitate the development of net-zero technology manufacturing projects, Member States shall ensure that all relevant spatial planning data is available online in accordance with Article 7.

2. Where plans include provisions for the development of net-zero technology manufacturing projects, including net-zero strategic projects, and their required infrastructure, and are subject to an assessment pursuant to Directive 2001/42/EC and pursuant to Article 6 of Directive 92/43/EEC, those assessments shall be combined. Where applicable, the combined assessment shall also address the impact on potentially affected water bodies referred to in Directive 2000/60/EC. Where relevant Member States are required to assess the impacts of existing and future activities on the marine environment, including land-sea interactions, as referred to in Article 4 of Directive 2014/89/EU of the European Parliament and of the Council (53), those impacts shall also be covered in the combined assessment. The fact that assessments are combined pursuant to this paragraph shall not affect their content or quality. The combined assessment shall be carried out in a manner that does not lead to a prolongation of the time limits set out in this Regulation.

Article 12

Applicability of UNECE Conventions

1. This Regulation is without prejudice to the obligations under the United Nations Economic Commission for Europe (UNECE) Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters, signed at Aarhus on 25 June 1998, and under the UNECE Convention on environmental impact assessment in a transboundary context, signed at Espoo on 25 February 1991 and its Protocol on Strategic Environmental Assessment, signed in Kyiv on 21 May 2003.

2. All decisions adopted pursuant to this Section and Articles 8, 15, 16 and 28 shall be made publicly available in an easily understandable manner and all decisions concerning a net-zero technology manufacturing project or a net-zero strategic project shall be available on the same website.

SECTION III - Net-zero strategic projects



Article 13

Selection criteria

1. Member States shall recognise as net-zero strategic projects net-zero technology manufacturing projects located in the Union that contribute to achieving the objectives set out in Article 1, including contributing to the Union’s climate or energy targets, and fulfil at least one of the following criteria:

(a)the net-zero technology manufacturing project contributes to the technological and industrial resilience of the Union’s net-zero technologies by increasing the manufacturing capacity of a component or a segment of the net-zero technology supply chain by:

(i)adding manufacturing capacity in the Union for a net-zero technology, for which the Union depends for more than 50 % on imports coming from third countries;

(ii)adding significant manufacturing capacity by making a substantive contribution to the 2030 climate or energy objectives of the Union; or

(iii)adding manufacturing capacity or updating existing manufacturing capacity in the Union for a net-zero technology, of which the Union’s manufacturing capacity represents a significant share of world production and which plays a crucial role in the resilience of the Union;

(b)the net-zero technology manufacturing project has a clear positive impact on the Union’s net-zero industry supply chain or downstream sectors by providing European net-zero industries with access to the best available net-zero technology or to products produced in a first-of-a-kind manufacturing facility, and fulfils at least one of the following criteria:

(i)putting into place measures to attract, retain, upskill or reskill a workforce required for net-zero technologies, including through apprenticeships, traineeships, continuing education and training in close cooperation with regional and local authorities, education and training institutions, and social partners including trade unions;

(ii)contributing to the competitiveness of SMEs as part of the supply chain of net-zero technologies;

(c)the project contributes to reaching the Union’s climate or energy objectives by manufacturing net-zero technologies through practices that implement improved environmental sustainability and performance or circularity features, including comprehensive low-carbon, energy, water or material efficiency and practices that significantly and permanently reduce emission rates of CO2-eq.

2. By 1 March 2025, the Commission shall adopt an implementing act setting out guidelines ensuring uniform conditions for the implementation of the criteria laid down in this Article. Those guidelines shall at least include specific guidance on the criteria to be used to assess:

(a)whether added manufacturing capacity concerns first-of-a-kind or best available technology manufacturing capacity;

(b)whether the additional manufacturing capacity can be considered to be significant.

That implementing act shall be adopted in accordance with the examination procedure referred to in Article 45(2).

3. Member States shall recognise as net-zero strategic projects CO2 storage projects that meet all of the following criteria:

(a)the CO2 storage site is located in the territory of the Union, its exclusive economic zones or on its continental shelf within the meaning of the United Nations Convention on the Law of the Sea (UNCLOS);

(b)the CO2 storage project contributes to reaching the objective set out in Article 20;

(c)the CO2 storage project has applied for a permit for the safe and permanent geological storage of CO2, in accordance with Directive 2009/31/EC.

Any CO2 capture project related to a CO2 storage project that fulfils the criteria referred to in the first subparagraph, and any related CO2 infrastructure project necessary for the transport of captured CO2shall also be recognised as a net-zero strategic project.

4. Net-zero technology manufacturing projects corresponding to a net-zero technology, located in ‘less developed and transition regions’ and Just Transition Fund territories and eligible for funding under cohesion policy rules shall be, after the award procedure has been completed, recognised by Member States as net-zero strategic projects under Article 14(3) upon the written request of the project promoter without the project promoter having to submit a formal application under Article 14(2).

5. A net-zero technology manufacturing project located in the Union that contributes to achieving the objectives set out in Article 1(1) and that benefits from the ETS Innovation Fund or is part of Important Projects of Common European Interest, of European Hydrogen Valleys or of the Hydrogen Bank, where the funds support investment in manufacturing capacities, shall be recognised by Member States as a net-zero strategic project under Article 14(3) upon the written request of the project promoter without the project promoter having to submit a formal application under Article 14(2).

6. Where a net-zero strategic project contributes to a value chain for a technology that a Member State does not accept as part of the general structure of its energy supply, that Member State may refuse to recognise that project as a strategic project. If there are net-zero technologies for which a Member State intends not to recognise projects as strategic projects, that Member State shall communicate that as soon as possible and publicly.

Article 14

Application and recognition

1. Applications for recognition of net-zero technology manufacturing projects as net-zero strategic projects shall be submitted by the project promoter to the relevant Member State.

2. The application referred to in paragraph 1 shall contain the following:

(a)relevant evidence related to the fulfilment of the criteria laid down in Article 13(1) or (3);

(b)a business plan evaluating the financial viability of the project consistent with the objective of creating quality jobs; and

(c)a first draft timetable for the project estimating when the project would be able to contribute to the Union’s manufacturing capacity benchmark referred to in Article 5 or the Union level objective of CO2 injection capacity referred to in Article 20.

The Commission shall provide a pre-set form to submit the applications referred to in paragraph 1.

3. Member States shall assess the application referred to in paragraph 1 through a fair and transparent process within one month of the receipt of the complete application. If the project promoter has not sent all the relevant and complete information required to process an application, the Member State shall request, once only, that the project promoter submit complementary information without undue delay, in order to obtain a complete application. The date of the acknowledgement of the completeness of the submission shall serve as the start of the assessment process. The decision resulting from this process shall be reasoned and shall be communicated to the project promoter and to the Platform referred to in Articles 38 and 39.

4. If there is no decision within the timeframe referred to in paragraph 3, the project promoter may notify the Member State and request without undue delay that the Member State provide the project promoter with an updated deadline, which shall not be later than 30 days from the original deadline.

5. The Commission may provide its opinion on the approved net-zero strategic projects. Where a Member State rejects the application, the applicant shall have the right to submit the application to the Commission, which shall assess the application within 20 working days. The Commission’s assessment is without prejudice to the Member State’s decision.

6. Where the Commission, following its assessment in accordance with paragraph 5 of this Article, confirms the rejection of the application by the Member State, it shall notify the applicant of its conclusion in the form of a letter. Where the Commission differs in its assessment from the Member State, the Platform referred to in Articles 38 and 39 shall discuss the project in question.

7. Where the Commission or a Member State finds that a net-zero strategic project has undergone substantial changes or that it no longer fulfils the criteria laid down in Article 13, or where its recognition as a net-zero strategic project was based on an application containing incorrect information, it shall inform the project promoter concerned. After hearing the project promoter, the Member State may repeal the decision recognising a project as a net-zero strategic project.

8. A project which is no longer recognised as a net-zero strategic project shall lose all rights connected to that status under this Regulation.

9. The Commission shall set up and maintain an openly available registry of net-zero strategic projects.

Article 15

Priority status of net-zero strategic projects

1. Project promoters and all authorities concerned shall ensure that for net-zero strategic projects the relevant processes are treated in the most rapid way possible in accordance with Union and national law.

2. Without prejudice to obligations provided for in Union law, where a project is recognised as a net-zero strategic project, Member States shall grant that net-zero strategic project the status of the highest national significance possible, where such a status exists in national law, and that net-zero strategic project shall be treated accordingly in the permit-granting processes, including those relating to environmental assessments and, where data is available, to spatial planning.

3. Net-zero strategic projects shall be considered to contribute to the security of supply of net-zero technologies in the Union and, therefore, to be in the public interest. With regard to the environmental impacts or obligations referred to in Article 4(7) of Directive 2000/60/EC, Article 9(1), point (a), of Directive 2009/147/EC, Articles 6(4) and 16(1) of Directive 92/43/EEC and in Union legislative acts on nature restoration, net-zero strategic projects in the Union shall be considered to be of public interest and may be considered to have an overriding public interest and to serve the interests of public health and safety provided that all the conditions set out in those acts are fulfilled.

4. All dispute resolution procedures, litigation, appeals and judicial remedies related to net-zero strategic projects before any national courts, tribunals or panels, including with regard to mediation or arbitration, where they exist in national law, shall be treated as urgent if and to the extent to which national law concerning permit-granting processes provides for such urgency procedures and provided that the usually applicable rights of defence of individuals or of local communities are respected. Project promoters of net-zero strategic projects shall participate in such urgency procedures, where applicable.

Article 16

Duration of the permit-granting process for net-zero strategic projects

1. The permit-granting process for net-zero strategic projects shall not exceed:

(a)9 months for the construction or expansion of net-zero strategic projects with a yearly manufacturing capacity of less than 1 GW;

(b)12 months for the construction or expansion of net-zero strategic projects with a yearly manufacturing capacity of 1 GW or more;

(c)18 months for all necessary permits to operate a storage site in accordance with Directive 2009/31/EC.

2. For net-zero strategic projects for which a yearly manufacturing capacity is not measured in GW, the permit-granting process shall not exceed 12 months.

3. Where an environmental impact assessment is required pursuant to Directive 2011/92/EU, the step of the assessment referred to in Article 1(2), point (g)(i), of that Directive shall not be included in the duration for the permit-granting process referred to in paragraphs 1 and 2 of this Article.

Article 17

Net-zero Acceleration Valleys

1. Member States may decide to designate net-zero Acceleration Valleys (the ‘Valleys’) as specific areas to accelerate net-zero industrial activities, in particular to accelerate the implementation of net-zero technology manufacturing projects, including net-zero strategic projects or clusters thereof, or to test innovative net-zero technologies. The objectives of the Valleys shall be to create clusters of net-zero industrial activity and to further streamline administrative procedures.

2. The decision referred to in paragraph 1 shall:

(a)define a clear geographic and technology scope for the Valleys;

(b)take into account areas that include artificial and built surfaces, industrial sites, and brownfield sites;

(c)be subject to an environmental assessment pursuant to Directive 2001/42/EC, and, where applicable, to an assessment pursuant to Article 6(3) of Directive 92/43/EEC; to the extent possible, the results of those assessments shall facilitate the preparation of net-zero technology manufacturing projects or net-zero strategic projects with a view to meeting the objectives of this Regulation and avoiding duplication of assessments; this provision is without prejudice to the compliance of individual projects with applicable Union environmental law;

(d)ensure synergies, where possible, with the designation of renewables acceleration areas as established by Directive (EU) 2023/2413 of the European Parliament and of the Council (54).

3. A decision by a Member State to designate a Valley shall be accompanied by a plan setting out concrete national measures to increase its attractiveness as a location for manufacturing activities, including at least the following economic and administrative support schemes to:

(a)facilitate the development of the necessary infrastructure in the Valley;

(b)support private investments in the Valley;

(c)achieve the adequate reskilling and upskilling of the local workforce;

(d)make information about the Valley accessible online in accordance with Article 7.

4. Public investments with the aim of setting up Valleys, equipping them with appropriate infrastructure, converting brownfield sites and developing the adequacy of the local skills pool may benefit, where appropriate, from the maximum co-financing rates under Regulations (EU) 2021/1058, (EU) 2021/1056 and (EU) 2021/1057.

Article 18

Permitting under Valleys

1. Sections II and III shall apply to individual projects in Valleys. A single point of contact, shall be designated for each Valley.

2. With a view to avoiding duplication of assessments, when issuing the opinion referred to in Article 10(1), the competent authority shall take into account the results of the assessments carried out pursuant to Article 17(2), point (c).

3. The single point of contact shall make available to project promoters templates indicating the specific permits needed for projects in Valleys. Those templates shall include information on any features of the project and measures envisaged to avoid or prevent significant adverse effects on the environment in order to ensure that only projects with significant environmental impacts are subject to an assessment pursuant to Directive 2011/92/EU and to facilitate the determination by a competent authority as to whether the project is to be made subject to an assessment pursuant to Article 4(2) to (6) of that Directive.

4. Net-zero technology manufacturing projects in Valleys shall be considered to contribute to the security of supply of net-zero technologies in the Union and, therefore, to be in the public interest. With regard to the environmental impacts or obligations referred to in Article 4(7) of Directive 2000/60/EC, Article 9(1), point (a), of Directive 2009/147/EC, Articles 6(4) and 16(1) of Directive 92/43/EEC and in Union legislative acts on nature restoration, net-zero technology manufacturing projects in Valleys in the Union shall be considered to be of public interest and may be considered to have an overriding public interest and to serve the interests of public health and safety provided that all the conditions set out in those acts are fulfilled.

Article 19

Coordination of financing

1. The Platform as established in Article 38 shall examine the bottlenecks and Union-wide financial needs of net-zero strategic projects, advise on ways of coordinating Union and national financing with regard to those financial needs, and collect potential best practices, inter alia, for the purpose of developing Union cross-border supply chains, in particular on the basis of regular exchanges and recommendations of the net-zero Industry Group and with the relevant industrial alliances.

2. The Platform shall, at the request of the net-zero strategic project promoter, discuss and advise on how the financing of the project can be completed, taking into account the funding already secured and considering at least the following elements:

(a)additional private sources of financing;

(b)support through resources from the EIB Group or other international financial institutions including the European Bank for Reconstruction and Development;

(c)existing Member State instruments and programmes, including from national promotional banks, institutions and Export Credit Agencies;

(d)relevant Union funding and financing programmes.

3. By 30 September 2024 and every two years thereafter, the Platform shall provide recommendations to the Commission on ways to ensure sufficient funding, including through the Union budget, to pursue the objectives of this Regulation.

4. Member States and, where appropriate, the Commission shall undertake activities to accelerate public investments in net-zero technology manufacturing projects. Such activities may, without prejudice to Articles 107 and 108 TFEU, include advising on and coordinating support for net-zero technology manufacturing projects which are facing difficulties in accessing finance.

CHAPTER III

CO2 INJECTION CAPACITY

Article 20

Union level objective of CO2 injection capacity

1. An annual injection capacity of at least 50 million tonnes of CO2 shall be achieved by 2030 in storage sites, meaning geological storage sites permitted under Directive 2009/31/EC including depleted oil and gas fields and saline aquifers, located in the territory of the Union, its exclusive economic zones or on its continental shelf within the meaning of the United Nations Convention on the Law of the Sea and which are not combined with Enhanced Hydrocarbon Recovery.

2. All storage sites shall be designed to operate for a minimum of five years and shall respect the principles of fair and open access provided in a transparent and non-discriminatory manner, as defined in Directive 2009/31/EC.

3. By 30 June 2027 and every two years thereafter, the Commission shall submit a report to the European Parliament and to the Council on the progress achieved towards meeting the Union annual injection capacity target, including the state of the market related to the injection capacity. The reports shall include an overview of the geographical spread of storage sites across the Union. The first report shall assess whether it is considered to be necessary to introduce a Union-wide objective for 2040 or earlier if needed.

4. The reports referred to in paragraph 3 shall include a CO2 storage and injection capacity assessment, using, in particular, the information collected pursuant to Article 21(2) and Article 23(6). The reports shall:

(a)provide a detailed analysis of the geographical and temporal planning of CO2 storage sites and of the CO2 capture projects for CO2 emissions from industrial installations within the Union taking into account the specific potential for CO2 usage to contribute to the permanent storage of CO2;

(b)identify the main infrastructure needed for the transport and storage of CO2 emissions from industrial installations throughout the Union;

(c)provide a detailed analysis on the possible barriers obstructing the development of the CCS market.

5. By 31 December 2028, the Commission may submit, on the basis of the assessment referred to in paragraph 3, a legislative proposal to introduce a new Union-level objective for CO2 injection capacity by 2040 or earlier if needed. If the Commission decides not to propose a legislative proposal to introduce that objective, it shall provide the European Parliament and the Council with reasons for its decision.

6. Within three months of the signature by the Union of an international agreement relating to this Chapter, the Commission shall submit a report assessing the implications of the international agreement, in particular with regard to promoting and safeguarding the Union’s environmental standards, climate objectives and the potential need for additional Union policies and measures in view of the provisions of that international agreement. On the basis of that report, the Commission shall, as appropriate, submit a legislative proposal to the European Parliament and to the Council amending this Regulation pursuant to paragraph 1.

7. The Commission shall publish guidelines indicating the appropriate levels of CO2 purity and of trace elements within the CO2 stream for CO2 storage projects contributing to the Union's injection capacity objective.

Article 21

Transparency of CO2 storage capacity data

1. By 30 December 2024, Member States shall:

(a)make data on all areas where CO2 storage sites could be permitted on their territory, including saline aquifers, publicly available, without prejudice to requirements regarding the protection of confidential information;

(b)oblige entities which are or have been holders of an authorisation as defined in Article 1, point 3, of Directive 94/22/EC of the European Parliament and of the Council (55) on their territory to make publicly available on a non-reliance basis geological data relating to production sites that have been decommissioned or whose decommissioning has been notified to the competent authority and, if available, economic assessments of the respective costs of enabling CO2 injection, unless the entity has applied for an exploration permit in accordance with Directive 2009/31/EC, including data on:

(i)whether the site is suitable for sustainably, safely and permanently injecting and storing CO2;

(ii)the availability or need for transport infrastructure and modes suitable for safely transporting CO2 to reach the site.

For the purposes of point (a) of the first subparagraph of this paragraph, the data shall include at least the information requested in the Commission Notices on the Guidance to Member States for integrated national energy and climate plans notified pursuant to Article 3(1) of Regulation (EU) 2018/1999 and the updates thereof submitted pursuant to Article 14 thereof (national energy and climate plans).

2. By 30 December 2024 and each year thereafter, each Member State shall submit to the Commission a report, which shall be made publicly available, and shall be without prejudice to requirements regarding the protection of confidential information, describing:

(a)a mapping of CO2 capture projects in progress on its territory or in cooperation with other Member States, and an estimation of the corresponding needs for injection and storage capacities, and CO2 transport;

(b)a mapping of CO2 storage and CO2 transport projects in progress on its territory, including the status of permitting under Directive 2009/31/EC, expected dates for Final Investment Decision (FID) and entry into operation;

(c)the national support measures that have been or will be adopted to prompt projects referred to in points (a) and (b) of this paragraph, as well as measures relating to the cross-border transport of CO2;

(d)the national strategy and targets that will be and have been set for the capture of CO2 by 2030, where applicable;

(e)bilateral and regional cooperation that facilitates the cross-border transport of CO2, including their implications for the access of entities capturing CO2 to a safe and non- discriminatory means of transporting CO2;

(f)CO2 transport projects in progress and an estimation of the necessary future CO2 transport projects’ capacity to match the corresponding capture and storage capacity.

3. Should the report referred to in paragraph 2 show that no CO2 storage projects are in progress on their territory, Member States shall report on plans to facilitate the decarbonisation of industrial sectors. This shall, if applicable, include the cross-border transport of CO2 to storage sites located in other Member States as well as CO2 utilisation projects.

Article 22

CO2 transport infrastructure

1. In order to facilitate the achievement of the objective set out in Article 20, the Union and its Member States, where appropriate in collaboration with relevant companies, shall make all reasonable efforts to develop the necessary CO2 transport infrastructure, including cross-border infrastructure, while taking into account the economic and environmental benefits of proximity of capture and storage sites.

2. Member States shall take the necessary measures to enable access to CO2 transport networks and to storage sites for the purposes of geological storage of the produced and captured CO2 as far as it is economically feasible to do so or when a potential customer is willing to pay, in accordance with Article 21 of Directive 2009/31/EC.

3. Where CO2 is captured and transported in one Member State and transported and stored in other Member States, Member States shall coordinate the measures taken by them pursuant to paragraph 2. The Commission may facilitate such coordination through the establishment of CCS Regional Groupings when there is a joint request from the Member States involved.

Article 23

Contribution of authorised oil and gas producers

1. Each entity holding an authorisation as defined in Article 1, point 3, of Directive 94/22/EC shall be subject to an individual contribution to the Union-wide target for available CO2 injection capacity set in Article 20 of this Regulation. Those individual contributions shall be calculated pro-rata on the basis of each entity’s share in the Union’s crude oil and natural gas production from 1 January 2020 to 31 December 2023 and shall consist of CO2 injection capacity in a storage site permitted in accordance with Directive 2009/31/EC and available to the market by 2030. Entities with crude oil and natural gas production below the threshold set in accordance with a delegated act pursuant to paragraph 12 of this Article, shall be excluded from this calculation and shall not be subject to a contribution.

2. By 30 September 2024, Member States shall identify and report to the Commission the entities referred to in paragraph 1 and their volumes in crude oil and natural gas production from 1 January 2020 to 31 December 2023.

3. Following the receipt of the reports submitted pursuant to Article 21(2), the Commission, after consulting Member States and interested parties, shall specify the contributions to the Union CO2 injection capacity objective by 2030 from entities referred to in paragraph 1 of this Article.

4. By 30 June 2025, the entities referred to in paragraph 1 shall submit to the Commission a plan specifying in detail how they intend to meet their contribution to Union CO2 injection capacity objective by 2030. Those plans shall:

(a)confirm the entity's contribution, expressed in terms of targeted volume of new CO2 storage and injection capacity commissioned by 2030;

(b)specify the means and the milestones for reaching the targeted volume.

5. In order to meet their targeted volumes of available injection capacity, the entities referred to in paragraph 1 may:

(a)invest in, or develop, CO2 storage projects alone or in cooperation;

(b)enter into agreements with other entities referred to in paragraph 1;

(c)enter into agreements with third-party storage project developers or investors to fulfil their contribution.

6. By 30 June 2026 and every year thereafter, the entities referred to in paragraph 1 shall submit a report to the Commission detailing their progress towards meeting their contribution. The Commission shall make those reports public.

7. By way of derogation from paragraph 1, a Member State may request the Commission to exempt the entities referred to in that paragraph from individual contributions in relation to the production activities that they have carried out on the territory of that Member State from 1 January 2020 to 31 December 2023, provided that:

(a)the overall annual injection capacity of all storage sites operated by any entity that has received a storage permit within the meaning of Directive 2009/31/EC and that has reached a final investment decision located on the territory of that Member State exceeds the sum of the individual contributions of the entities referred to in paragraph 1 of this Article in relation to the relevant production activities, and that the annual injection capacities associated with those storage sites corresponds to those mentioned in the storage permits and in the final investment decisions and contributes to the Union-wide target for available CO2 injection capacity set in Article 20 of this Regulation;

(b)the application is submitted before the end of 2027.

8. Provided that the conditions laid down in paragraph 7 are fulfilled, the Commission shall adopt a decision exempting the entities concerned from their individual contribution in relation to the production activities they have carried out on the territory of the Member State submitting the request.

9. Entities exempted pursuant to paragraph 8 may enter into agreements in accordance with paragraph 5, points (b) and (c), only in respect of any injection capacity exceeding the individual contribution from which they are exempted and the sum of the individual contributions that have been exempted.

10. One year after the exempting decision and every year thereafter, the Member State shall submit a report to the Commission specifying in detail the progress of the entities exempted pursuant to paragraph 8 towards meeting their contribution to the Union-wide target for available CO2 injection capacity set in Article 20. The Commission shall make those reports public.

11. By 31 December 2028, the Commission shall, on the basis of the reports referred to in Article 42(1), point (c), and Article 42(8), assess the relationship between the demand for injection capacity from CO2 capture projects and the main infrastructure needed for the transport of CO2 in progress or planned to be operational by 2030 and the sum of the individual contributions of the entities referred to in paragraph 1 of this Article in relation to the production activities on the territory of a given Member State. In the case of a substantial imbalance, the Member State concerned may exceptionally ask the Commission for a derogation regarding the date by which the individual contributions are to be fulfilled.

12. The Commission is empowered to adopt delegated acts in accordance with Article 44 to supplement this Regulation with regard to:

(a)the rules concerning the identification of entities subject to a contribution pursuant to paragraph 1, including the threshold below which entities are exempt from contribution;

(b)the arrangements whereby agreements between entities referred to in paragraph 1 and investments in storage capacity held by third parties are taken into account to meet their individual contribution under paragraph 5, points (b) and (c);

(c)the content of the reports referred to in paragraph 6;

(d)the detailed conditions under which the Commission may grant an exemption or a derogation to entities under paragraph 7, 8 or 11.

13. No later than 30 June 2026, Member States shall lay down penalties by means of administrative procedures, legal proceedings, or both, applicable to infringements by entities referred to in paragraph 1 with regard to their obligations under paragraph 3. Those penalties shall be effective, proportionate and dissuasive.

Article 24

Regulatory framework for the market for captured CO2

1. By 30 June 2027, the Commission shall carry out an assessment of the functioning of the market for captured CO2. That assessment shall be based on a clear methodology, take into account the annual reports referred to in Article 21(2) and, in particular, consider whether:

(a)the obligations set out in Article 23(1) effectively promote the development of the CO2 storage market in the Union;

(b)the market provides for open, fair and non-discriminatory access and safety of the CO2 storage and transport network;

(c)the market provides for open, fair and non-discriminatory access to capture CO2 for usage or storage purposes;

(d)the adequacy of the CO2 transport network and other infrastructure across the Union to sufficiently support the injection capacity objectives as well as the need for CO2 capture;

(e)the functioning of the CO2 market ensures sufficient access to injection capacity for hard-to-abate CO2 emissions.

2. On the basis of the assessment referred to in paragraph 1, the Commission may propose a legislative act to regulate the market in order to address any shortcomings identified, in particular with regard to hard-to-abate emissions.

CHAPTER IV

ACCESS TO MARKETS

Article 25

Sustainability and resilience contribution in public procurement procedures

1. For public procurement procedures falling within the scope of Directive 2014/23/EU, 2014/24/EU or 2014/25/EU, where contracts have net-zero technologies listed in Article 4(1), points (a) to (k), of this Regulation as part of their subject matter, or in the case of works contracts and works concessions including said technology, contracting authorities and contracting entities shall apply minimum mandatory requirements regarding environmental sustainability established in the implementing act referred to in paragraph 5 of this Article.

2. Paragraph 1 shall not preclude contracting authorities or contracting entities from using additional minimum requirements or award criteria in relation to environmental sustainability.

3. Notwithstanding paragraph 1, contracting authorities and contracting entities shall apply at least one of the following conditions, requirements or contractual obligations for the works contracts and works concessions referred to in paragraph 1:

(a)a special condition that relates to social or employment-related considerations that takes the form of a contract performance clause within the meaning of Article 70 of Directive 2014/24/EU and of Article 87 of Directive 2014/25/EU and of the general principles of Directive 2014/23/EU;

(b)a requirement to demonstrate compliance with applicable cybersecurity requirements provided for in a cyber resilience regulation, including, where appropriate and where available, through a relevant European cybersecurity certification scheme;

(c)a specific contractual obligation to deliver the component of the contract relating to net-zero technologies listed in Article 4(1), points (a) to (k) on time, that may give rise to an obligation to pay an appropriate charge if this obligation is not fulfilled, and that goes beyond the requirements provided for in applicable national legislation, if such legislation exists.

4. The minimum mandatory requirements referred to in paragraph 1, where applicable, shall take the form, where appropriate, of:

(a)technical specifications or requirements within the meaning of Article 36 of Directive 2014/23/EU, of Article 42 of Directive 2014/24/EU and of Article 60 of Directive 2014/25/EU; or

(b)contract performance clauses within the meaning of Article 70 of Directive 2014/24/EU and of Article 87 of Directive 2014/25/EU and of the general principles of Directive 2014/23/EU.

5. By 30 March 2025, the Commission shall adopt an implementing act specifying minimum requirements on environmental sustainability for the public procurement procedures referred to in paragraph 1.

When adopting that implementing act, the Commission shall consider at least the following elements:

(a)the market situation at Union level of the relevant technologies;

(b)provisions regarding environmental sustainability set out in other Union legislative and non-legislative acts applicable to public procurement procedures covered by the obligation set out in paragraph 1;

(c)the Union’s international commitments, including the GPA and other international agreements of which the Union is bound.

That implementing act shall be adopted in accordance with the examination procedure referred to in Article 45(2).

6. A Member State shall not discriminate against, or subject to unjustified different treatment, a provider or net-zero products from another Member State.

7. The tender’s resilience contribution shall be taken into account in the case of public procurement procedures falling within the scope of Directives 2014/23/EU, 2014/24/EU or 2014/25/EU where such contracts have net-zero technologies listed in Article 4(1), points (a) to (k), of this Regulation as part of their subject matter, or in the case of the works contracts and works concessions referred to in paragraph 1, including said technology, and in the case of contracts awarded on the basis of a framework agreement where the estimated value of those agreements is equal to or above the values set out in Article 8 of Directive 2014/23/EU, Article 4 of Directive 2014/24/EU and Article 15 of Directive 2014/25/EU, in accordance with this paragraph.

If the Commission, at the time of the call for competition for a public procurement procedure as referred to in paragraph 1 of this Article, or commencement of such a procedure, has determined in accordance with Article 29(2) that the proportion of a specific net-zero technology or its main specific components originating in a third country accounts for more than 50 % of the supply of that specific net-zero technology or its main specific components within the Union, or if the Commission has determined in accordance with Article 29(2) that the proportion of supply within the Union of a specific net-zero technology or its main specific components originating in a third country has increased by at least 10 percentage points on average for two consecutive years and reaches at least 40 % of the supply within the Union, contracting authorities and contracting entities shall include the following conditions for the public procurement procedures referred to in paragraph 1 of this Article:

(a)an obligation for the duration of the contract not to supply more than 50 % of the value of the specific net-zero technology referred to in this paragraph from each individual third country as determined by the Commission;

(b)an obligation for the duration of the contract that no more than 50 % of the value of the main specific components of the specific net-zero technology referred to in this paragraph is supplied or provided directly by the successful tenderer or by a subcontractor from each individual third country as determined by the Commission;

(c)an obligation to provide contracting authorities and contracting entities, upon their request, adequate evidence relating to point (a) or (b), at the latest upon completion of the execution of the contract;

(d)an obligation to pay a proportionate charge, in the event of non-observance of the conditions referred in point (a) or (b), of at least 10 % of the value of the specific net-zero technologies of the contract referred to in this paragraph.

8. For contracts covered by the Union’s Appendix I to the GPA as well as by other relevant international agreements by which the Union is bound, contracting authorities and contracting entities shall not apply the requirements of points (a) to (d) of the second subparagraph of paragraph 7, where the specific net-zero technology or its main specific components originates from sources of supply that are signatories to those agreements.

9. Contracting authorities and contracting entities may, on an exceptional basis, decide not to apply paragraphs 1 to 4, where:

(a)the required net-zero technology can only be supplied by a specific economic operator and no reasonable alternative or substitute exists and the absence of competition is not the result of an artificial narrowing down of the parameters of the public procurement procedure;

(b)no suitable tenders or no suitable requests to participate have been submitted in response to a similar former public procurement procedure launched by the same contracting authority or contracting entity in the two years immediately before the commencement of the planned new procurement procedure;

(c)their application would oblige that contracting authority or contracting entity to acquire equipment having disproportionate costs or would result in technical incompatibility in operation and maintenance.

10. Estimated cost differences above 20 %, based on objective and transparent data, may be presumed by contracting authorities and contracting entities to be disproportionate.

11. Where the application of the resilience contribution pursuant to paragraph 7 of this Article has led to a situation where no suitable tenders or no suitable requests to participate have been submitted in response to a public procurement procedure, the contracting authorities or contracting entities may, on an exceptional basis:

(a)decide to use the negotiated procedure without prior publication pursuant to Article 32(2), point (a), of Directive 2014/24/EU, Article 50, point (a), of Directive 2014/25/EU or Article 31(5) of Directive 2014/23/EU; or

(b)decide not to apply paragraph 7 of this Article in a specific subsequent public procurement procedure that aims to address the same needs as those which led to the commencement of the initial procedure referred to in this paragraph.

12. This Article shall be without prejudice to:

(a)the possibility of using additional non price criteria;

(b)the possibility of excluding abnormally low tenders under Article 69 of Directive 2014/24/EU and Article 84 of Directive 2014/25/EU;

(c)Articles 107 and 108 TFEU, in the case of uncompetitive public procurement procedures.

Article 26

Auctions to deploy renewable energy sources

1. For the technologies listed in Article 4(1), points (a) to (j) that are renewable energy technologies, Member States shall, when designing auctions for the deployment of energy from renewable sources, include:

(a)pre-qualification criteria related to:

(i)responsible business conduct;

(ii)cyber security and data security; and

(iii)ability to deliver the project fully and on time;

(b)pre-qualification criteria or award criteria to assess the auction’s sustainability and resilience contribution as referred to in paragraph 2.

This paragraph is without prejudice to Article 4 of Directive (EU) 2018/2001 and Articles 107 and 108 TFEU, and to the Union’s international obligations.

2. The auctions’ sustainability and resilience contribution shall be based on the criteria laid down in this paragraph. Those criteria shall be objective, transparent and non-discriminatory.

Auctions shall contribute to resilience, taking into account the proportion of the net-zero technology or its main specific components that originates from a third country accounting for more than 50 % of the supply of that specific net-zero technology or its main specific components within the Union.

For the purposes of the second subparagraph of this paragraph, the country of origin shall be determined in accordance with Regulation (EU) No 952/2013 of the European Parliament and of the Council (56).

Auctions shall also contribute to at least one of the following:

(a)environmental sustainability going beyond the minimum requirements in applicable law;

(b)innovation by providing entirely new solutions or improving comparable state-of-the-art solutions;

(c)the energy system integration.

This paragraph shall not preclude Member States from using additional non-price criteria beyond those listed in this paragraph.

3. By 30 March 2025, the Commission shall adopt an implementing act further specifying the pre-qualification and award criteria referred to in paragraph 1.

That implementing act shall be adopted in accordance with the examination procedure referred to in Article 45(2).

4. Member States shall give to each of the criteria to assess the auction’s sustainability and resilience contribution, when applied as award criteria, a minimum weight of 5 % and a combined weight of between 15 % and 30 % of the award criteria. This is without prejudice to the possibility to give a higher weighting to the criteria referred to in the fourth subparagraph of paragraph 2, in accordance with any limit for non-price criteria set under State aid rules.

5. Member States shall not be obliged to apply the considerations relating to the pre-qualification and award criteria laid down in paragraph 1 where, by applying those criteria, they would incur disproportionate costs. Estimated cost differences above 15 % per auction, based on objective and verifiable data, may be presumed by Member States to be disproportionate.

6. Member States shall, where appropriate, take measures to maximise the execution rate of projects through appropriate incentives, for example, by applying price indexation. Member States may assess the effects of negative bidding on the speed and scale of deployment.

7. Paragraphs 1 to 5 shall apply to at least 30 % of the volume auctioned per year per Member State or alternatively to at least 6 Gigawatt per year per Member State.

8. By 31 December 2027 and every two years thereafter, the Commission shall carry out a comprehensive assessment of the application of the resilience and sustainability criteria for auctions for the deployment of energy from renewable sources and their effect on the accelerated deployment of renewable energy technologies. In particular, the Commission shall assess the impact of the resilience and sustainability criteria on:

(a)the development of the Union’s annual manufacturing of renewable energy technologies;

(b)the deployment of energy from renewable sources, including their financial impact and their impact on the speed of deployment, while also taking into account the workability, including the administrative burden, and clarity of the system for project developers and national administration, on the basis of available data.

As part of that assessment, the Commission shall consult experts from Member States in the field of auctioning.

9. If the assessment referred to in paragraph 8 is positive, in particular if application of the resilience and sustainability criteria has not significantly hindered the deployment of energy from renewable sources, the Commission shall, where appropriate, submit a proposal to amend paragraph 7 to determine the shares of the volume auctioned per year per Member State or the absolute volume to which paragraphs 1 to 5 apply, in particular with a view to increasing those volumes, and to adapt the threshold of the estimated cost differences referred to in paragraph 5.

10. For the purpose of calculating the volumes auctioned per year per Member State, auctions for installations with a maximum project size of 10 MW may be excluded. For auctions for a specific technology to which paragraphs 1 to 5 apply and that have subsequently been undersubscribed, the undersubscribed share of the auction volume may be excluded from the application of paragraphs 1 to 5.

11. To facilitate implementation for all Member States, in particular for those with a low volume of auctions, Member States that have not launched more than 2 auctions per year during the previous 2 years, may compute the share of auctions to which paragraphs 1 to 5 apply over that 2-year period.

Article 27

Pre-commercial procurement and public procurement of innovative solutions

1. Member States shall seek to use, where appropriate, pre-commercial procurement and public procurement of innovative solutions in order to stimulate innovation in net-zero technology and the creation of new manufacturing capacity for net-zero technologies in the Union. Pre-commercial procurement and public procurement of innovative solutions may be topped up with Union-level funding within the framework of existing Union programmes for joint pre-commercial procurement or public procurement across Member States.

2. The Platform shall prepare recommendations on the design of pre-commercial procurement or public procurement of innovative solutions.

Article 28

Other forms of public intervention

1. Without prejudice to Articles 107 and 108 TFEU and Article 4 of Directive (EU) 2018/2001 and in line with the Union’s international commitments, when deciding to set up new schemes or to update existing schemes benefitting households, companies or consumers which incentivise the purchase of net-zero technology final products, Member States, regional or local authorities, bodies governed by public law or associations formed by one or more such authorities or one or more such bodies governed by public law shall design those schemes in such a way as to promote the purchase by beneficiaries of net-zero technology final products with a high sustainability and resilience contribution as referred in paragraph 4 of this Article, by providing additional proportionate financial compensation or by conditioning the eligibility of the scheme on the basis of the criteria laid down in paragraph 4 of this Article, while considering the accessibility of the schemes for citizens living in energy poverty.

2. The additional financial compensation granted by authorities in accordance with paragraph 1 of this Article, due to the application of the criteria laid down in paragraph 4, first subparagraph, introductory part and points (b) and (c), of this Article, shall not exceed 5 % of the cost of the net-zero technology final product for the consumer, with the exception of schemes targeting citizens living in energy poverty, as defined in Article 2, point (1), of Regulation (EU) 2023/955 of the European Parliament and of the Council (57), for which the limit shall be 15 %.

3. When designing and implementing a scheme pursuant to paragraph 1, the authority shall assess the resilience and sustainability contribution of available net-zero technology final products on the market on the basis of on an open, non-discriminatory and transparent process. Any net-zero technology final product shall be entitled to apply to join the scheme at any time. The authority shall specify a pass mark for net-zero technology final products to be eligible to the additional financial compensation under the support scheme.

4. The sustainability and resilience contribution of other forms of public intervention shall be based on their contribution to resilience, taking into account the proportion of the net-zero technology or its main specific components originating from a third country that accounts for more than 50 % of the supply of that specific net-zero technology within the Union, and at least one of the following:

(a)environmental sustainability going beyond the minimum requirements in applicable law;

(b)contribution to innovation by providing entirely new solutions or improving comparable state-of-the-art solutions;

(c)contribution to the energy system integration.

The criteria referred to in the first subparagraph shall be objective, transparent and non-discriminatory.

This shall not preclude Member States from using additional non-price criteria beyond those laid down in the first subparagraph.

For the purposes of the contribution to resilience referred to in the first subparagraph, introductory part, of this paragraph, the country of origin shall be determined in accordance with Regulation (EU) No 952/2013.

5. Member States shall publish on a single free access website all information relating to schemes pursuant to paragraph 1 for each relevant net-zero technology final product.

Article 29

Coordination of access to markets initiatives

1. Where relevant, the Commission shall provide guidance on the application of the criteria to assess the resilience and sustainability contribution of net-zero technology products covered by the forms of public intervention referred to in Articles 25, 26 and 28.

2. For the purposes of the assessment of the contribution to resilience, the Commission shall adopt an implementing act providing for a list of each of the net-zero technology final products and their main specific components. That implementing act shall be adopted in accordance with the examination procedure referred to Article 45(2).

On the basis of the implementing act referred to in the first subparagraph, the Commission shall provide updated information on the shares of the Union supply originating in different third countries in the most recent year for which data is available for each of the net-zero technologies and their main specific components. The country of origin shall be determined in accordance with Regulation (EU) No 952/2013.

3. The Platform shall discuss measures carried out by Member States to implement Articles 25 to 28 and exchange best practices, inter alia, with regard to the practical use of criteria defining the sustainability and resilience contribution in public procurement procedures, or schemes incentivising the purchase of net-zero technology final products.

CHAPTER V

ENHANCING SKILLS FOR QUALITY JOB CREATION

Article 30

European net-zero industry academies

1. Based on an assessment, by the Commission, using existing data and reports, of skills shortages in net-zero technology industries key for the industrial transformation and decarbonisation, and fully respecting the competence of Member States in the field of education and training, the Commission shall support, including through the provision of seed-funding, the launch of European net-zero industry academies (the ‘Academies’), as organisations or consortia or projects of relevant stakeholders, which have the following objectives:

(a)developing, for voluntary use by Member States and education and training providers on their territories, learning programmes, content and learning and training materials for training and education, such as on developing, producing, installing, commissioning, operating, maintaining, repairing, ecodesigning, re-using and recycling net-zero technologies, and on raw materials as well as relevant occupational health and safety aspects and transversal competences; this shall reflect the assessment of skills shortages and support the capacities of public authorities, in particular those competent to issue permits and authorisations referred to in Chapter II and contracting authorities and contracting entities referred to in Chapter IV of this Regulation;

(b)promoting the voluntary use of the learning programmes, content and materials by education and training providers in the Member States;

(c)offering support to the education and training providers that use the learning programmes, content and materials produced by the Academies to uphold the quality of the training offered and to develop mechanisms to ensure the quality of the training offered;

(d)developing credentials, including, if appropriate, micro-credentials, for voluntary use by Member States and education and training providers on their territories, in order to facilitate the identification of skills and, where appropriate, the recognition of qualifications, to enhance the transferability between jobs and industries, to facilitate the cross-border mobility of the workforce, to promote matching with relevant quality jobs through tools such as the European network of employment services (EURES) and EURAXESS, and to ensure visibility of the fact that a learning programme or learning content was developed by an Academy.

2. The Academies shall involve relevant actors, such as net-zero technology industry, education and training providers and social partners from a range of Member States. The Academies shall develop action plans setting out, among others, milestones, targets including in terms of number of learners to be based on the assessment of skills shortages, as well as a financial plan aiming to achieve financial sustainability. Those action plans shall pay particular attention to regions in industrial transformation or with a high rate of unemployment, where relevant.

3. The Academies shall produce gender-balanced content, contribute to counter gender stereotypes and promote equal access to learning contents for all, paying particular attention to the need to activate more women and young people, in particular NEETs, older people, workers in professions which are at risk of disappearing or the content and tasks of which are being highly transformed by new technologies, people working in regions in transition and persons with disabilities. The Academies shall promote diversity and the inclusivity of people with disability, migrants and people in vulnerable situations.

4. Without prejudice to the respective powers of the budgetary authority, financial means shall be made available where appropriate at Union level to support the launch of the Academies with seed-funding as referred to in paragraph 1. In addition, Member States are encouraged to make use of relevant Union funds such as ESF+, to support the deployment of the learning content developed by the Academies.

Article 31

Regulated professions in the net-zero technology industries and recognition of professional qualifications

1. Within nine months after the completion of the learning content and materials developed by an Academy and every two years thereafter, Member States shall strive to identify whether the learning programmes developed by that Academy are equivalent to the specific qualifications required by the host Member State to access regulated activities within the scope of a profession with particular interest for the net-zero technology industry in that Member State. Member States shall ensure that the results of the assessments are made public and easily accessible online. In the event that the learning programmes are deemed not to be equivalent to the qualifications required by the host Member State to access regulated activities, or where a Member State has not sought to identify equivalence, that Member State shall inform the Platform, providing relevant information on:

(a)the reasoning for not completing the identification exercise; or

(b)the differences between the learning programmes developed by the Academies and the specific qualifications required by that host Member State, and how to achieve equivalence.

2. If a Member State concludes that the learning programmes developed by an Academy are equivalent to the specific qualifications required by the host Member State to access regulated activities, it shall facilitate the recognition of credentials issued by education and training providers on the basis of the learning programmes developed by the Academy, under Title III, Chapter I of Directive 2005/36/EC, where a holder of such a credential requests access to a regulated profession within the meaning of Article 3(1), point (a), of Directive 2005/36/EC, and of particular importance for the net-zero technology industry, by treating the credential as sufficient evidence of formal qualifications, in accordance with Article 11 of Directive 2005/36/EC.

3. Where access to a profession of particular importance for the net-zero technology industry is regulated within the meaning of Article 3(1), point (a), of Directive 2005/36/EC, Member States shall work towards developing a common set of minimum knowledge, skills and competences necessary for the pursuit of that specific profession for the purpose of establishing a common training framework as referred to in Article 49a(1) of Directive 2005/36/EC to enable automatic recognition of qualifications. The Platform may also submit suggestions for common training frameworks, as referred to in Article 49a(3) of Directive 2005/36/EC.

Article 32

Net-Zero Europe Platform and skills

The Platform shall support and supplement the action of Member States in the deployment of skills in net-zero technologies, while respecting their competence, by advising and assisting the Commission and Member States, including competent authorities, and contracting authorities and contracting entities, as referred to in Chapters II and IV, by means of the following:

(a)assessing, continuously monitoring and forecasting the demand and supply of a workforce with the skill sets needed in net-zero technologies and the availability and uptake of corresponding education and training opportunities, for the purpose of informing the activities of the Academies, as appropriate;

(b)monitoring the activity of the Academies, on the basis of the data and information on how many people have benefited from the learning programmes developed by the Academies, including disaggregated data by industrial sector, gender, age and level of education and qualification, fostering synergies with Union and national skills initiatives and projects, and strengthening and scaling up good practices, inter alia, to attract a diverse workforce and provide general oversight;

(c)analysing the root causes of labour and skills shortages, on the basis of existing insights and data, including those related to the quality of the job offer, thus assessing whether additional measures are needed to attract more workers of all qualification levels in certain industries;

(d)assisting the mobilisation of stakeholders including industry, undertakings including SMEs, social partners and education and training providers, such as universities, for the promotion, and, in line with national practices, their possible participation in the roll-out of learning programmes developed by the Academies;

(e)assisting the uptake of learning credentials developed by the Academies in the Member States to promote the identification of skills and, where relevant, recognition of qualifications and the matching of skills and jobs, inter alia, by promoting the validity and acceptance of the credentials throughout the labour market of the Union;

(f)monitoring the uptake and recognition of learning credentials and contributing to providing solutions where issues of non-recognition are detected;

(g)facilitating, where appropriate, the development of European occupation profiles, for the voluntary use by Member States, consisting of a common set of knowledge, skills and competences for key professions in the net-zero technologies, drawing inter alia upon the learning programmes developed by the Academies, and, where appropriate, using the terminology provided by the European Skills, Competences, Qualifications and Occupations (ESCO) classification to facilitate transparency and mobility between jobs and across internal market borders;

(h)promoting career prospects and quality working conditions, including adequate wages, in jobs in net-zero technology industries, integration in the labour market for net-zero technology industries of more women and young people, in particular NEETs, older people, workers in professions which are at risk of disappearing or the content and tasks of which are being highly transformed by new technologies, people working in regions in transition and persons with disabilities, and attracting skilled workers from third countries through instruments such as the European Blue Card and in accordance with national competences, law and practice, and thereby achieving a more diverse workforce;

(i)encouraging and supporting labour mobility across the Union and promoting the publication of vacant positions related to net-zero technologies by EURES, in accordance with Regulation (EU) 2016/589 of the European Parliament and of the Council (58);

(j)facilitating closer coordination and the exchange of best practices and knowhow between Member States and within the private sector to enhance the availability of skills in the net-zero technologies, including by contributing to Union and Member States policies to attract new talents from third countries and all educational levels, in accordance with national competences, law and practice and in coordination with the already existing structures of European cooperation in education and training;

(k)looking for synergies with existing training or education programmes, with the aim, among others, of matching the learning programmes of the Academies with the needs of the Union’s industry.

CHAPTER VI

INNOVATION

Article 33

Net-zero regulatory sandboxes

1. By 30 March 2025, Member States shall, when setting up net-zero regulatory sandboxes, establish or designate one or more contact points. A sole contact point shall be responsible for each request to establish a net-zero regulatory sandbox pursuant to this Article.

2. Member States, together with local and regional authorities and other Member States where appropriate, may at their own initiative establish net-zero regulatory sandboxes. Member States shall establish net-zero regulatory sandboxes, in close collaboration with industry and, where relevant, research institutes, the social partners and civil society, in accordance with paragraph 1 at the request of any company, organisation or consortium developing innovative net-zero technologies that fulfils the eligibility and selection criteria laid down in the paragraph 3, second subparagraph, point (a), and that has been selected by the competent authorities following the selection procedure referred to in the paragraph 3, second subparagraph, point (b).

3. The arrangements and the conditions for the establishment and operation of the net-zero regulatory sandboxes pursuant to paragraph 2 shall be adopted by means of implementing acts. Those arrangements and conditions shall support flexibility of the competent authorities with regard to prioritising between and approving applications for net-zero regulatory sandboxes. They shall foster innovation and regulatory learning and shall particularly take into account the special circumstances and capacities of participating SMEs and start-ups.

Those implementing acts shall include common main principles on the following issues:

(a)the eligibility criteria and selection procedure for participation in the net-zero regulatory sandboxes;

(b)the procedure for the application, participation, monitoring, exiting from and termination of the net-zero regulatory sandboxes;

(c)the terms and conditions applicable to the participants.

Those implementing acts shall be adopted in accordance with examination procedure referred to in Article 45(2).

4. Participation in net-zero regulatory sandboxes shall not affect the supervisory and corrective powers of the authorities supervising the net-zero regulatory sandbox. The testing, development and validation of innovative net-zero technologies or other innovative technologies shall take place under the supervision and with the support of the competent authorities. The competent authorities shall exercise their supervisory powers in a flexible manner within the limits of the relevant law, adapting existing regulatory practices and using their discretionary powers when implementing and enforcing legal provisions to a specific net-zero regulatory sandbox project, with the objective of removing barriers, alleviating regulatory burden, reducing regulatory uncertainty, and supporting innovation in net-zero technologies or other innovative technologies.

5. For the purpose of achieving the objective of this Article, the competent authorities shall consider whether to grant derogations or exemptions in national law to the extent allowed by relevant Union law. The competent authorities shall ensure that the net-zero regulatory sandbox plan respects the requirements of Union law and the key objectives and essential requirements of national law. Competent authorities shall ensure that any significant risk to health, safety or the environment identified during the development and testing of innovative net-zero technologies or other innovative technologies is publicly communicated and results in the immediate suspension of the development and testing process until such risk is mitigated. Where competent authorities consider that the proposed project raises exceptional risks for the health and safety of workers, of the general population, or of the environment, in particular because it relates to testing, development or validation involving particularly toxic substances, they shall only approve the net-zero regulatory sandbox plan provided that they are satisfied that adequate safeguards commensurate with the exceptional risk identified have been put in place.

6. Participants in the net-zero regulatory sandbox shall remain liable under applicable Union and Member States’ liability law for any material harm inflicted on third parties as a result of the testing taking place in the net-zero regulatory sandbox.

7. The duration of the net-zero regulatory sandbox may be extended through the same procedure upon agreement of the national competent authority.

8. The net-zero regulatory sandboxes shall be designed and implemented in such a way that, where relevant, they facilitate cross-border cooperation between the national competent authorities. Member States that have established net-zero regulatory sandboxes shall coordinate their activities and cooperate within the framework of the Platform with the objective of sharing relevant information with other Member States. The Platform may invite companies that have participated in a net-zero regulatory sandbox to share their experience of the process. The Commission shall, on the basis of information provided by the Members States and the discussions held in the Platform, report regularly on the results of the implementation of net-zero regulatory sandboxes, including good practices, lessons learnt and recommendations on their setup and, where relevant, on the application, within the net-zero regulatory sandbox, of this Regulation and other Union law in a manner adapted for the purposes of the net-zero regulatory sandbox.

Article 34

Measures for SMEs and start-ups

1. Member States shall:

(a)provide SMEs and start-ups with priority access to the net-zero regulatory sandboxes to the extent that they fulfil the eligibility conditions laid down in Article 33;

(b)organise awareness raising activities about participation to the net-zero regulatory sandboxes by SMEs and start-ups;

(c)where appropriate, establish a dedicated channel for communication with SMEs and start-ups to provide guidance and respond to queries about the implementation of Article 33.

2. Member States shall take into account the specific interests and needs of SMEs and start-ups, and provide adequate administrative support to take part in the net-zero regulatory sandboxes. Without prejudice to the application of Articles 107 and 108 TFEU, Member States shall inform SMEs and start-ups of available financial support for their activities in the net-zero regulatory sandboxes.

Article 35

Establishment of the Strategic Energy Technology Plan Steering Group

1. The Strategic Energy Technology Plan Steering Group (SET Plan Steering Group) is hereby established.

2. The SET Plan Steering Group shall perform the tasks set out in this Regulation.

Article 36

Tasks of the SET Plan Steering Group

1. The SET Plan Steering Group shall provide guidance and direction to the Strategic Energy Technology Plan.

2. The Commission and Member States shall work and coordinate within the SET Plan Steering Group to help support the development of clean, efficient and cost-competitive energy technologies through coordination and collaboration in clean energy research and innovation and, where relevant, with third countries upon invitation.

3. The SET Plan Steering Group shall advise and assist the Commission in setting up initiatives related to the tasks referred to in paragraphs 1 and 2.

Article 37

Structure and functioning of the SET Plan Steering Group

1. The SET Plan Steering Group shall be composed of Member States and the Commission. It shall be chaired by one or more representatives of the Commission.

2. Each Member State shall appoint a high-level representative to the SET Plan Steering Group. Where relevant as regards the function and expertise, a Member State may appoint more than one representative in relation to different tasks of the SET Plan Steering Group. Each representative appointed to the SET Plan Steering Group shall have an alternate.

3. On a proposal by the Commission, the SET Plan Steering Group shall adopt its rules of procedure by a simple majority of its members.

4. The SET Plan Steering Group shall meet at regular intervals to ensure the effective performance of its tasks. Where necessary, the SET Plan Steering Group shall meet on the basis of a reasoned request by the Commission or by a simple majority of its members.

5. The Commission shall assist the SET Plan Steering Group by means of an executive secretariat that provides technical and logistic support.

6. The SET Plan Steering Group may establish standing or temporary working groups and task forces dealing with specific questions and tasks.

CHAPTER VII

GOVERNANCE

Article 38

Establishment and tasks of the net-zero Europe Platform

1. The net-zero Europe Platform (‘the Platform’) is hereby established.

2. The Platform shall perform the tasks set out in this Regulation.

3. The Platform may advise and assist the Commission and Member States with regard to their actions to reach the objectives set out in Chapter I of this Regulation, while avoiding disproportionate administrative burden for Member States where feasible, and taking into account Member States’ national energy and climate plans.

4. Members of the Platform shall coordinate the Net-Zero Industrial Partnerships within the Platform to help promote the adoption of net-zero technologies globally, to collaborate in the development of innovative net-zero technologies and to support the role of Union industrial capabilities in paving the way for the global clean energy transition, in accordance with the general objective of this Regulation as laid down in Article 1. The Platform may periodically discuss, inter alia:

(a)how to improve and promote cooperation, knowhow and technology sharing along the net-zero value chain between the Union and third countries;

(b)the resilience including through enhanced competitiveness of the European industries within the scope of this Regulation in relation to global value chains and recommended actions for enhancement;

(c)where appropriate, improving consistency between this Regulation and other Union initiatives which could contribute to the objectives of this Regulation and whether to issue recommendations in relation thereto;

(d)the progress on value chains for net-zero technologies, ongoing technological and industrial changes, and potential future emerging strategic value chains in view of the objectives of this Regulation;

(e)best practices with regard to the implementation of Section II of Chapter II as well as to Articles 15 and 16 and accelerating the permitting deadlines;

(f)how to address non-tariff barriers to trade, such as through mutual recognition of conformity assessment or commitments to avoid export restrictions;

(g)which third countries could be prioritised for the conclusion of Net-Zero Industrial Partnerships, taking into account the following:

(i)the potential contribution to security of supply, taking into account their manufacturing capacity of net-zero technologies;

(ii)whether there are existing cooperation agreements between a third country and the Union;

(iii)whether a third country's regulatory framework and its implementation ensures the monitoring, prevention and minimisation of environmental impacts, the use of socially responsible practices including respect of human and labour rights and meaningful and equitable engagement with local communities, the use of transparent business practices and the prevention of adverse impacts on the proper functioning of public administration and the rule of law;

(iv)CO2 injection and storage capacities within their territories;

(h)how to incentivise production of net-zero technologies in the Union, by addressing funding, regulatory framework and investment and location guarantees;

(i)the assessment of the application of trade measures in net-zero industries.

This paragraph shall be without prejudice to the prerogatives of the Council in accordance with the Treaties in relation to non-binding international instruments.

5. Member States may support the Commission in the implementation of the cooperation measures set out in the Net-Zero Industrial Partnership.

6. Taking into account the Commission’s report of 24 October 2023 entitled ‘Progress on competitiveness of clean energy technologies’ and the Commission’s Annual Burden Survey 2022, the Commission shall report to the Platform on the development of the regulatory burden for net-zero industries in the Union.

7. The Platform shall regularly coordinate with the High-Level Forum on Standardisation to discuss the use of standardisation to support the development of net-zero technologies in the Union.

Article 39

Structure and functioning of the Platform

1. The Platform shall be composed of representatives of Member States and of the Commission. It shall be chaired by a representative of the Commission.

2. Each Member State shall appoint a high-level representative to the Platform. Where relevant as regards the function and expertise, a Member State may appoint more than one representative in relation to different tasks of the Platform. Each representative appointed to the Platform shall have an alternate. Only Member States shall have voting rights. Each Member State shall have only one vote regardless of the number of representatives.

3. On a proposal by the Commission, the Platform shall adopt its rules of procedure by a simple majority of its members.

4. The Platform shall meet at regular intervals in order to ensure the effective performance of its tasks provided for in this Regulation. Where necessary, the Platform shall hold extraordinary meetings on the basis of a reasoned request by the Commission or by a Member State.

5. The Commission shall assist the Platform by means of an executive secretariat that provides technical and logistic support.

6. The Platform may establish standing or temporary sub-groups dealing with specific questions and tasks relating to this Regulation.

The Platform shall establish at least a sub-group to ensure the appropriate implementation of the Academies pursuant to Chapter V.

7. The Platform shall invite representatives of the European Parliament to attend, as observers, its meetings, including the meetings of the standing or temporary sub-groups referred to in paragraph 6. The European Parliament shall receive all documentation and information related to the work of the Platform at the same time as the members of the Platform.

8. The Platform shall establish a net-zero Industry Group. That group shall, on its own initiative or upon a request of the Platform, provide recommendations to the Platform with a view to contributing to achieving the objectives of this Regulation.

9. Where appropriate, the Platform or the Commission may invite experts representing industry, civil society, academia, trade unions and other third parties to participate in the meetings of the Platform and in sub-group meetings or to provide written contributions. Those experts shall not participate in decision making.

10. The Platform shall take the necessary measures to ensure the safe handling and processing of confidential and commercially sensitive information.

11. The Platform shall use its best endeavours to take decisions by means of consensus.

12. The Platform shall coordinate and cooperate with existing and relevant industrial alliances and, where appropriate, invite them to attend its meetings, including the meetings of the standing or temporary sub-groups referred to in paragraph 6.

13. The Platform shall meet at least once every year with representatives from the SET Plan Steering Group referred to in Article 35 in order to discuss the most recent developments, synergies between the implementation of this Regulation and the Strategic Energy Technology Plan and to issue recommendations thereon.

Article 40

Net-zero Regulatory Burden Scientific Advisory Group

1. A Net-zero Regulatory Burden Scientific Advisory Group (the ‘Scientific Advisory Group’) is hereby established.

2. The Scientific Advisory Group shall be composed of at least 7 senior scientific experts covering a broad range of relevant disciplines. Members of the Scientific Advisory Group shall fulfil the criteria laid down in paragraph 4.

3. No more than two members of the Scientific Advisory Group shall hold the nationality of the same Member State. The independence of the members of the Scientific Advisory Group shall be beyond doubt.

4. The members of the Scientific Advisory Group shall be appointed for a term of four years, which shall be renewable once, following an open, fair and transparent selection procedure. The selection of members shall be based on the following criteria:

(a)scientific excellence;

(b)experience in carrying out scientific assessments and providing scientific advice in their fields of expertise;

(c)expertise in the field of public administration or other fields relevant for the tasks of the Scientific Advisory Group;

(d)professional experience in an inter-disciplinary environment in an international context.

5. The members of the Scientific Advisory Group shall be appointed in a personal capacity and shall provide their opinions independently of the Member States and of the Union institutions. The Scientific Advisory Group shall elect a chairperson from among its members for a period of four years. It shall adopt its rules of procedure.

6. The Scientific Advisory Group shall in the exercise of its activities function exclusively in an advisory capacity and act without prejudice to the Commission’s right of initiative, the Interinstitutional Agreement on Better Law-Making and the Commission’s scrutiny and quality-control functions in the Regulatory Scrutiny Board.

7. The Scientific Advisory Group shall support, in accordance with paragraph 6, the work of the Commission, of the European Parliament and of the Member States, while acting independently in discharging its tasks by providing advisory reports on the regulatory impact and burden of Union law on industrial activities within the scope of this Regulation. In order to provide consistent advice, the Scientific Advisory Group shall assess regulatory impacts and burdens on industrial activities within the scope of this Regulation, utilising a science informed methodology and, where appropriate, taking into account the Better Regulation Toolbox.

8. The Commission shall provide the secretariat of the Scientific Advisory Group.

9. The Scientific Advisory Group shall regularly exchange views on its work with the Platform.

Article 41

National energy and climate plans

Member States shall take into consideration this Regulation when preparing their national energy and climate plans, in particular as regards the dimension ‘research, innovation and competitiveness’ of the Energy Union, reflecting the priorities of the Energy Union Strategy and the Strategic Energy Technology Plan, and when submitting their biennial progress reports in accordance with Article 17 of Regulation (EU) 2018/1999.

CHAPTER VIII

MONITORING

Article 42

Monitoring

1. The Commission shall monitor on an ongoing basis:

(a)the Union’s progress with respect to the Union’s objectives referred to in Article 1, in particular the supply risks of net-zero technologies that would distort competition or fragment the internal market, and the related impact of this Regulation;

(b)the Union’s progress in meeting the benchmarks referred to in Article 5, taking into account constraints and opportunities on the global market;

(c)the value or volume of imports into its territory and exports outside of the Union’s territory of net-zero technologies;

(d)the progress with respect to the Union level objective of CO2 injection capacity referred to in Article 20 and to the related CO2 transport infrastructure as well as the related CO2 capture activities.

2. Member States and the national authorities they designate for that purpose shall collect and provide data and other evidence required pursuant to paragraph 1.

In particular, they shall, at least every 3 years collect data on:

(a)obstacles to trade in net-zero technologies or in goods that use net-zero technologies within the internal market and their potential drivers, including where such obstacles stem from global supply chain disruptions;

(b)developments in net-zero technologies and market trends, as well as market prices for the respective net-zero technologies, including information on auctions, their frequency, awarding prices, and volume as relevant for fulfilling the requirements of Chapter IV;

(c)net-zero technology manufacturing capacity and related activities, including data on employment and skills;

(d)the number of SMEs that are part of net-zero technology manufacturing projects;

(e)the following information related to permit-granting processes per net-zero technology:

(i)the number of permit-granting processes initiated, the number of applications refused, and the number of comprehensive decisions taken, specifying whether they approved or refused the project;

(ii)the duration of the permit-granting processes where a comprehensive decision was taken, including the duration of extensions of the time limits;

(iii)information on the resources allocated to the operation of the single points of contact;

(f)the number and nature of net-zero regulatory sandboxes;

(g)the amount of CO2 stored permanently underground in accordance with Directive 2009/31/EC.

3. Where they are not already included in, or in accordance with the elements of, the national energy and climate plans, each Member State shall submit to the Commission a report setting out the data referred to in paragraph 2 by 15 March 2027 and every three years thereafter.

4. The reporting obligation referred to in paragraph 3 of this Article shall not apply where Member States consider that it would be contrary to their essential security interests pursuant to Article 346 TFEU.

5. The Commission may adopt implementing acts to provide a template for the reports referred to in paragraph 3 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 45(2).

6. On the basis of the reports submitted pursuant to paragraph 3 of this Article, the Commission shall monitor the Union’s progress as referred to in paragraph 1, point (a), of this Article and publish related recommendations as part of the Annual Reports on Competitiveness of Clean Energy Technologies, pursuant to Article 35(2), point (m), of Regulation (EU) 2018/1999. The recommendations shall also consider whether all the net-zero technologies necessary to achieve the objectives laid down in Article 1 of this Regulation are covered by this Regulation.

7. On the basis of the draft permit applications submitted pursuant to Article 10 of Directive 2009/31/EC and of the reports submitted pursuant to Articles 21(2), 23(4) and 23(6) of this Regulation, the Commission shall monitor the progress towards reaching the Union-wide target for CO2 injection capacity as referred to in paragraph 1, point (d), of this Article. The Commission shall report annually thereon to the European Parliament and to the Council.

8. The Commission shall inform the Platform on of its findings in relation to this Article.

CHAPTER IX

FINAL PROVISIONS

Article 43

Delegation of power

The Commission is empowered to adopt delegated acts in accordance with Article 44 to amend the arrangements whereby agreements between entities referred to in Article 23(1) and investments in storage capacity held by third parties are taken into account to meet their individual contribution set out in Article 23(5) and to establish the content of the reports referred to in Article 23(6).

Article 44

Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The power to adopt delegated acts referred to in Article 23(12), Article 43 and Article 46(7) shall be conferred on the Commission for a period of five years from 29 June 2024. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3. The delegation of power referred to in Article 23(12), Article 43 and Article 46(7) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6. A delegated act adopted pursuant to Article 23(12), Article 43 or Article 46(7) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Article 45

Committee procedure

1. The Commission shall be assisted by a Committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. For matters related to Article 25 of this Regulation, the Commission shall be assisted by the Advisory Committee on Public Procurement established by Council Decision 71/306/EEC (59). For matters related to Article 26 of this Regulation, the Commission shall be assisted by the Energy Union Committee established by Article 44 of Regulation (EU) 2018/1999.

2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 46

Evaluation

1. By 30 June 2028 and every three years thereafter, the Commission shall evaluate this Regulation and present a report on its main findings to the European Parliament, to the Council and to the European Economic and Social Committee.

2. The evaluation referred to in paragraph 1 shall assess:

(a)whether the objectives of this Regulation as laid down in Article 1, in particular its contribution to the functioning of the internal market, have been achieved, this Regulation’s impact on business users, in particular SMEs, and end users, and the European Green Deal objectives;

(b)whether this Regulation is fit to deliver beyond 2030 and towards the longer term 2050 climate neutrality target referred to in Article 1, taking into account, among other aspects, the possibility to include in this Regulation other technologies that can play a significant role in achieving climate neutrality by 2050;

(c)whether benchmarks for specific technologies are needed in order to achieve the security of supply of those technologies for the Union.

3. The evaluation shall take into account:

(a)the result of the monitoring process referred to in Article 42;

(b)the technology needs stemming from the updates of the national energy and climate plans, including the Strategic Energy Technology Plan, taking into account the most recent State of the Energy Union Report.

4. Within the same period referred to in paragraph 1 of this Article, as well as after each renewal or update of the national energy and climate plans and after consulting with the Platform, the Commission shall assess the need, and where appropriate submit a proposal, to expand the list of net-zero technologies set out in Article 4.

5. The competent authorities of the Member States shall provide the Commission with any relevant information they have and that the Commission may require to draw up the report referred to in paragraph 1.

6. Where, on the basis of the report referred to in paragraph 1 of this Article, the Commission concludes that the Union is likely not to achieve the objectives set out in Article 1(1), it shall, after consulting the Platform, assess the feasibility and proportionality of proposing measures in order to ensure the achievement of those objectives.

7. By 30 March 2025, the Commission shall adopt a delegated act in accordance with Article 44 to amend the Annex on the basis of the list of net-zero technologies set out in Article 4, in order to identify the sub-categories within net-zero technologies and the list of specific components used for those technologies. That delegated act shall be based on a comprehensive assessment to identify specific essential components that can reasonably be considered to be primarily used for net-zero technologies. That assessment shall be based on a methodological analysis of the supply chains of the net-zero technologies, taking into account, in particular, the commercial availability of the components, the appropriate level of detail and developments in technology. The Commission may review that delegated act on the basis of that assessment.

Article 47

Handling of confidential information

1. Information acquired in the course of implementing this Regulation shall be used only for the purposes of this Regulation and shall be protected by the relevant Union and national law.

2. Member States and the Commission shall ensure the protection of trade and business secrets and other sensitive, confidential and classified information obtained and processed in application of this Regulation, including recommendations and measures to be taken, in accordance with Union and relevant national law.

3. The Commission and Member States shall ensure that classified information provided or exchanged pursuant to this Regulation is not downgraded or declassified without the prior written consent of the originator in accordance with relevant Union or national law.

4. Where a Member State considers that the disclosure of aggregated information pursuant to Article 23 is likely to compromise its national security interest, it may, by means of a reasoned notice, object to the Commission’s disclosure of that information.

5. The Commission and the national authorities, their officials, employees and other persons working under the supervision of those authorities shall ensure the confidentiality of information obtained in carrying out their tasks and activities in accordance with relevant Union or national law. This obligation also applies to all representatives of Member States, observers, experts and other participants attending meetings of the Platform pursuant to Article 39.

Article 48

Amendment to Regulation (EU) 2018/1724

Regulation (EU) 2018/1724 is amended as follows:

(1)in Annex I, in the first column, a new row ‘R. Net-zero technology manufacturing projects’ is added;

(2)in Annex I, in the second column, in the row ‘R. Net-zero technology manufacturing projects’, the following points are added:

‘1.information on the permit-granting process;

2.financing and investment services;

3.funding possibilities at Union or Member State level;

4.business support services, including but not limited to corporate tax declaration, local tax laws, labour law.’

;

(3)in Annex II, in the first column, a new row ‘Net-zero technology manufacturing projects’ is added;

(4)in Annex II, in the second column, in the row ‘Net-Zero technology manufacturing projects’, the following point is added:

‘Procedures for all relevant permits to build, expand, convert and operate net-zero technology manufacturing projects, and net-zero strategic projects, including building, chemical and grid connection permits, environmental assessments and authorisations where required, and encompassing all applications and procedures.’

;

(5)in Annex II, in the third column, in the row ‘Net-Zero technology manufacturing projects’, the following point is added:

‘All outputs pertaining to the procedures ranging from the acknowledgement that the application is complete to the notification of the comprehensive decision on the outcome of the procedure by the designated contact point.’

;

(6)in Annex III, the following point is added:

‘(8)Single points of contact established or designated, pursuant to Article 6(1) of Regulation (EU) 2024/1735 of the European Parliament and of the Council (*1), including for the purposes of Article 18(1) of that Regulation and contact points established or designated pursuant to Article 33(1) thereof.

(*1)  Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724 (OJ L, 2024/1735, 28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1735/oj).’ "

Article 49

Entry into force and application

1. This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

2. It shall apply from 29 June 2024.

3. Until 30 June 2026, Article 25(1) shall apply only to contracts concluded by central purchasing bodies as defined in Article 2(1), point (16), of Directive 2014/24/EU and Article 2(1), point (12), of Directive 2014/25/EU and for contracts of a value equal to or higher than EUR 25 million.

4. Articles 26 and 28 shall apply from 30 December 2025.

This Regulation shall be binding in its entirety and directly applicable in all Member States.