The European Commission has taken a significant step towards bolstering the EU’s clean energy sector by adopting rules that define the scope of the Net-Zero Industry Act (NZIA). This move is set to reshape the landscape of clean energy technology deployment, aiming to make the EU’s industry more resilient, competitive, and environmentally friendly. The Commission has rolled out four new pieces of secondary legislation and a communication, each designed to clarify and streamline the path for clean energy technologies.
At the heart of today’s announcement is the clarification of which manufacturing projects can benefit from specific provisions in the NZIA. This includes provisions on permitting, strategic project status, and non-price criteria. By listing specific components, the Commission has provided a clear roadmap for industries looking to navigate the complexities of the NZIA. This clarity is crucial for businesses, as it offers a predictable framework within which to operate and invest.
One of the most notable aspects of the new rules is the inclusion of non-price criteria in renewable energy auctions. Starting from 30 December 2025, 30% of auction volumes (or 6GW per year per EU country) must consider factors such as responsible business conduct, cybersecurity, and sustainability and resilience contribution. This shift away from purely price-based decisions is a significant departure from traditional procurement practices. It signals a move towards a more holistic evaluation of bids, one that prioritizes long-term sustainability and security over short-term cost savings. This change is expected to drive innovation and encourage the adoption of more robust and secure technologies.
The Commission has also adopted an act listing net-zero technology final products and their main specific components. This list is instrumental in identifying which products may trigger the mandatory application of the “resilience” non-price criterion. In practical terms, this means that contracting authorities must consider supply chain resilience alongside price when selecting technologies or suppliers. This approach is a direct response to the increasing complexity and vulnerability of global supply chains, aiming to ensure that the EU’s energy infrastructure is robust and reliable.
In addition, the Commission has released a communication that sheds light on the EU’s supply of net-zero technologies, highlighting dependencies on third countries for specific technologies. This information is vital for the application of the “resilience” non-price criterion in public procurement, renewable energy auctions, and other public interventions. By diversifying technology sources, the EU aims to reduce its reliance on external suppliers and enhance its strategic autonomy.
The NZIA also introduces the concept of “strategic project” status for net-zero technology manufacturing projects. Projects granted this status benefit from “priority status” at the national level, ensuring rapid administrative treatment and financial advice. This provision is designed to accelerate the deployment of clean energy technologies, providing a competitive edge to projects that align with the EU’s climate goals.
Executive Vice President for Prosperity and Industrial Strategy Stéphane Séjourné hailed the adoption of the secondary legislation as a key milestone. “Today’s adoption of the secondary legislation under the Net-Zero Industry Act marks a key milestone in boosting clean tech in the EU,” Séjourné stated. “We are providing the clarity and confidence our clean tech industries need to invest, scale, and lead globally.” This sentiment was echoed by Commissioner for Energy and Housing Dan Jørgensen, who emphasized the importance of well-designed auctions in supporting the roll-out of renewable energy. “Today, we deliver on our competitiveness agenda by implementing a new piece of the Net Zero Industry Act,” Jørgensen said. “Well designed auctions to support the roll-out of renewable energy are a vital step for giving a better chance to European manufacturers to compete on the EU market, and to achieve both our resilience and decarbonisation goals.”
The adoption of these rules is likely to spark a wave of investment and innovation in the clean energy sector. By providing a clear and supportive regulatory framework, the EU is positioning itself as a global leader in the transition to net-zero emissions. The emphasis on non-price criteria and supply chain resilience is particularly noteworthy, as it challenges traditional procurement practices and encourages a more sustainable and secure approach to energy technology deployment. As the EU moves forward with the implementation of the NZIA, it will be crucial to monitor the impact of these rules on the industry and to adapt them as needed to ensure their effectiveness. The coming years will be pivotal in determining whether the EU can achieve its ambitious climate goals while maintaining its competitiveness on the global stage.