EU Law to Increase Domestic Green Tech Production

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.