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A big boost for climate-neutral key-enabling technologies

A European Regulation called Net-Zero Industry Act is to boost production capacity for net-zero technologies within the EU. A stock-take one year after its entry into force.

A climate-neutral European industrial sector will require new technologies on the basis of renewables and a high level of energy efficiency. This strengthens competitiveness, reduces dependencies and supports energy and climate targets. 

The Net-Zero Industry Act (NZIA), which has been in force since 29 June 2024, was developed by the EU to foster the expansion of climate-neutral key-enabling technologies. By 2030, at least 40% of the annual need for net-zero technologies is to be covered by the EU itself. 

The NZIA consists of measures such as expedited approval procedures, incentives for investment, increased CO₂ storage capacity, improved market access, funding for innovation and capacity building. 

^{NZIA projects for the manufacturing of net-zero technologies.}

The NZIA includes projects for the manufacturing of net-zero technologies such as solar, wind or hydropower, battery and storage solutions, heat pumps, hydrogen and electricity grid technologies and energy-efficient systems, e.g. for heat networks.

There are single points of contact to facilitate pan-European net-zero technology projects. Member States can also designate ‘Acceleration Valleys’. In Germany, the Lausitz region, the Rhineland mining area, northern Lower Saxony and Schleswig-Holstein want to secure this status for themselves.

Germany is aiming for a practical implementation of the NZIA. In mid-June 2025, some 100 representatives from business, the political sphere and the associations engaged in discussions on this, reaching the following consensus. “Germany is in a good position compared to other EU Member States, the implementation of the NZIA has got off to a positive start.” So far, three strategic projects have been recognised – in Schleswig-Holstein, Bavaria and North Rhine-Westphalia, with another one (in Saxony-Anhalt) still under examination.

^{Federation and Länder working closely together on implementation}

The application is submitted to the European Commission and processed at Länder level. The regions see major potential for Acceleration Valleys and strategic projects: the requirements set out in the NZIA serve as strategic guidance and may give rise to flagship projects that European investors are very keen on. 

The Federation and the Länder are working closely together on national implementation. Procedures were developed early on, which has aided smooth cooperation.

At present, the work is centring on how Germany is to ensure compliance with the requirements regarding CO₂ capture and storage and resilience auctions. The latter are to factor in quality-based criteria in addition to price-based ones, so as to encourage a diversification of supply chains and strengthen European manufacturers.

In May 2025, the European Commission tabled an implementation package consisting of three implementing acts, two delegated acts and a Communication. Further legal acts on issues including regulatory sandboxes and public procurement will follow.