Brussels, 25 April 2024

The European Parliament has voted through the highly anticipated Net-Zero Industry Act (NZIA), one of the cornerstones of the Green Deal Industrial Plan (GDIP).

Hydrogen Europe welcomes the recognition of hydrogen technologies as key strategic technologies for Europe’s clean transition and economic resilience. However, the legislation fails to leverage the momentum of the hydrogen industry, omitting the sector from much-needed specific support measures and an overall lack of EU funds for these technologies.

NZIA aims to speed up permitting processes for manufacturing projects in Member States and act as a catalyser for public and private investment into clean technologies. This endeavour, as part of the GDIP, will be essential to repairing, retaining, and strengthening Europe’s industrial competitiveness. However, a lack of available funding plus hydrogen’s omission from non-price/resilience criteria in public auctions threaten to undermine the end-goal.

“Hydrogen Europe welcomes the inclusion of all crucial hydrogen technologies in the scope of the NZIA legislation, which is essential for European competitiveness on the global stage. We urge lawmakers to bridge the gap between ambition and reality by increasing available funding for strategic technologies and implementing a Capital Markets Union to maximise European potential,” said Jorgo Chatzimarkakis, CEO of Hydrogen Europe.

Hydrogen Europe draws particular attention to the conclusions of the recent Letta report to the European Council, which calls for radical change to the single market in order to keep pace with the likes of the US and China in the clean tech revolution and other industrial sectors.

The concept of a Capital Markets Union, mentioned in the Letta report and anticipated too in the upcoming Draghi report, can stop the exodus of European companies to more favourable market conditions abroad. The simplification of processes for Important Projects of Common European Interest (IPCEI) and creation of a pan-EU state aid framework will also help.

NZIA contains ambitious 2030 targets and that, as well as the inclusion of hydrogen technologies, shows Europe’s policymakers are serious about global industrial competitiveness. The next European Commission should follow the recommendation of the Letta and Draghi reports if we are serious about keeping a vibrant manufacturing supply chain for hydrogen in Europe.

With the parliamentary vote over, the final step for NZIA is now a Council vote before it becomes European law.

More information:

Letta report to the European Council
Hydrogen Europe Article: Net-Zero Industry for EU manufacturing