EU Law to Increase Domestic Green Tech Production

• 28 May 2024

On May 27th, 2024, European Union(EU) governments formally cleared new law designed to ensure the bloc produces 40% of its solar panels, wind turbines, heat pumps and other clean tech equipment and to help European industry compete with U.S. and Chinese rivals.

Key Points

• The Act will come into force in July 2024 once it has been signed by the presidents of the European Parliament and the Council.
• The NZIA proposes streamlining the permit process for projects that enhance EU manufacturing, aiming to ensure that most permits are issued within six to nine months.
• The act is central to the EU’s efforts to not only lead the world in reducing greenhouse gas emissions but also in producing the necessary technology.
• The EU has established a 2030 target of producing 40% of the products it needs to reduce greenhouse gas emissions covering renewable energy, nuclear power, heat pumps, electrolysers and other decarbonising technologies, including carbon capture.
• The EU is aiming to reach 15% of global production of these technologies by 2040.