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How the EU can get its Net Zero Industrial Act right
Setting the right priorities for the climate and cleantech
In the face of growing international competition in green technology, the launch of the Green Deal Industrial Plan (GDIP) is welcome. By focusing on the regulatory environment for clean technologies, financing, skills and trade, the GDIP is a building block towards an ambitious green industrial policy at the EU level.
The Commission’s proposal can contribute to transforming European industry and increase its competitive sustainability. Strong support is needed to capture the growing value chain of cleantech in Europe, at the benefit of climate, employment and economic resilience.
But the EU’s Net Zero Industry Act (NZIA), which is supposed to cover the regulatory and skills pillars of the GDIP, is not yet fit for purpose. It lacks well-designed targets and appropriate resources to truly speed up and scale up the manufacturing of clean technologies across Europe. To be effective Europe’s response should mirror the United States’ IRA in focus, simplicity and visibility.