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Net-Zero Industry Act In force Unlisted

Overview

Jurisdiction
European Union
Topic
-
Instrument type
Regulation
Reference number
2024/1735
Valid from
2024-06-29
Valid to
2024-06-29
Modified date
2806-08-06
Listed at
Unlisted draft
Withdrawn at
-
Description
Establishes an EU framework to strengthen the manufacturing of net-zero technologies and their supply chains, including streamlined permitting, strategic projects, CO2 storage infrastructure, resilient procurement, skills development and innovation support.

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Sources

No regulation sources yet.

Rule sets

Label Effective
Companies with net-zero manufacturing or decarbonisation projects 2024-06-29 — 9999-12-31
Applies from milestone:
Application Start (2024-06-29)
Expires at milestone:
-

No conditions.
Companies applying for strategic-project status 2024-06-29 — 9999-12-31
Country scope:
AT, BE, BG, HR, CY, CZ, DK, EE, FI, FR, DE, GR, HU, IE, IT, LV, LT, LU, MT, NL, PL, PT, RO, SK, SI, ES, SE
Applies from milestone:
Application Start (2024-06-29)
Expires at milestone:
-

No conditions.
Entities holding hydrocarbon authorisations 2024-06-29 — 9999-12-31
Applies from milestone:
Application Start (2024-06-29)
Expires at milestone:
-

No conditions.
Companies as tenderers or main contractors in covered public contracts 2024-06-29 — 9999-12-31
Applies from milestone:
Application Start (2024-06-29)
Expires at milestone:
-

No conditions.

Questions this regulation asks

Attributes only this regulation asks about — criteria no general attribute expresses. A company answers each once.

This regulation asks no questions of its own — every condition uses a general attribute.

Obligations

Title Kind Rule set
Application for recognition as a net-zero strategic project Approval -
Description:
The project promoter must submit an application to the relevant Member State for recognition of a manufacturing project as a net-zero strategic project.
Frequency:
Event-triggered
Check frequency:
Event-triggered
Products/Services:
Net-zero technologies and related supply chains; planned or existing manufacturing facilities
Checking responsibility:
Project promoter and relevant Member State
Check method:
Review of the submitted application documents by the relevant Member State; decision within one month after receipt of the complete application
Rule set:
-
Source reference:
Article 14(1)
Source excerpt:
Applications for recognition of net-zero technology manufacturing projects as net-zero strategic projects shall be submitted by the project promoter to the relevant Member State.
Evidence, business plan and timetable for recognition application Record Keeping -
Description:
The project promoter must include evidence that the criteria are fulfilled, a business plan assessing financial viability and quality-job creation, and a first draft project timetable.
Frequency:
Event-triggered
Check frequency:
Event-triggered
Products/Services:
Net-zero technology manufacturing projects applying for recognition as strategic projects
Checking responsibility:
Project promoter
Check method:
Completeness and substantive review by the Member State
Rule set:
-
Source reference:
Article 14(2)
Source excerpt:
The application referred to in paragraph 1 shall contain the following: (a) relevant evidence related to the fulfilment of the criteria laid down in Article 13(1) or (3); (b) a business plan evaluating the financial viability of the project consistent with the objective of creating quality jobs; and (c) a first draft timetable for the project estimating when the project would be able to contribute to the Union’s manufacturing capacity benchmark referred to in Article 5 or the Union level objective of CO2 injection capacity referred to in Article 20.
Plan to fulfil the CO2 injection contribution Reporting -
Description:
Each obligated entity must submit a detailed plan to the Commission confirming its targeted volume of new CO2 storage and injection capacity by 2030 and specifying the means and milestones for achieving it.
Frequency:
One-time
Check frequency:
One-time
Products/Services:
CO2 storage and injection capacity
Checking responsibility:
Entities holding an authorisation for hydrocarbon prospecting, exploration or production
Check method:
Review of the plan by the Commission
Rule set:
-
Source reference:
Article 23(4)
Source excerpt:
By 30 June 2025, the entities referred to in paragraph 1 shall submit to the Commission a plan specifying in detail how they intend to meet their contribution to Union CO2 injection capacity objective by 2030.
Annual progress report on the CO2 injection contribution Reporting -
Description:
The obligated entity must report annually to the Commission on its progress towards meeting its CO2 injection contribution.
Frequency:
Annual
Check frequency:
Annual
Products/Services:
Progress towards providing CO2 injection capacity
Checking responsibility:
Entities subject to an individual CO2 injection contribution
Check method:
Annual progress report to the Commission; publication by the Commission
Rule set:
-
Source reference:
Article 23(6)
Source excerpt:
By 30 June 2026 and every year thereafter, the entities referred to in paragraph 1 shall submit a report to the Commission detailing their progress towards meeting their contribution. The Commission shall make those reports public.
Publication of geological CO2 storage data Record Keeping -
Description:
The entity must make available geological data and, where available, economic assessments concerning suitable production sites, unless it has applied for an exploration permit.
Frequency:
Event-triggered
Check frequency:
Event-triggered
Products/Services:
Geological data relating to decommissioned or notified-for-decommissioning hydrocarbon production sites
Checking responsibility:
Current or former holders of a hydrocarbon authorisation
Check method:
Public disclosure of the data on a non-reliance basis, subject to confidentiality requirements
Rule set:
-
Source reference:
Article 21(1)(b)
Source excerpt:
oblige entities which are or have been holders of an authorisation as defined in Article 1, point 3, of Directive 94/22/EC on their territory to make publicly available on a non-reliance basis geological data relating to production sites that have been decommissioned or whose decommissioning has been notified to the competent authority and, if available, economic assessments of the respective costs of enabling CO2 injection
Limit on third-country supply in public contracts Other -
Description:
The successful tenderer or main contractor must ensure throughout the contract that no more than 50% of the value of the relevant net-zero technology and its main components is supplied from each individual third country identified by the Commission.
Frequency:
Continuous
Check frequency:
Continuous
Products/Services:
Net-zero technologies and their main specific components in public contracts
Checking responsibility:
Successful tenderer or main contractor
Check method:
Verification by the contracting authority or contracting entity during and no later than completion of contract execution
Rule set:
-
Source reference:
Article 25(7)(a)
Source excerpt:
an obligation for the duration of the contract not to supply more than 50 % of the value of the specific net-zero technology referred to in this paragraph from each individual third country as determined by the Commission;
Evidence of compliance with third-country limits Record Keeping -
Description:
The successful tenderer or main contractor must provide adequate evidence of compliance with the third-country supply limits upon request.
Frequency:
Event-triggered
Check frequency:
Event-triggered
Products/Services:
Net-zero technologies and their main specific components in public contracts
Checking responsibility:
Successful tenderer or main contractor
Check method:
Provision of adequate evidence upon request, no later than completion of contract execution
Rule set:
-
Source reference:
Article 25(7)(c)
Source excerpt:
an obligation to provide contracting authorities and contracting entities, upon their request, adequate evidence relating to point (a) or (b), at the latest upon completion of the execution of the contract;

Measures

No measures.

Penalties

Description Kind Rule set
National penalties that are effective, proportionate and dissuasive for infringements by obligated entities concerning their CO2 injection contribution obligations. Other -
Responsible authority:
Member States
Source reference:
Article 23(13)
Source excerpt:
No later than 30 June 2026, Member States shall lay down penalties by means of administrative procedures, legal proceedings, or both, applicable to infringements by entities referred to in paragraph 1 with regard to their obligations under paragraph 3. Those penalties shall be effective, proportionate and dissuasive.
A proportionate contractual charge of at least 10% of the value of the relevant net-zero technologies for non-compliance with the third-country supply limits in a public contract. Monetary Fine -
Responsible authority:
Contracting authority or contracting entity
Source reference:
Article 25(7)(d)
Source excerpt:
an obligation to pay a proportionate charge, in the event of non-observance of the conditions referred in point (a) or (b), of at least 10 % of the value of the specific net-zero technologies of the contract referred to in this paragraph.
Liability under applicable Union and national liability law for material harm inflicted on third parties as a result of testing in a net-zero regulatory sandbox. Private Action -
Responsible authority:
-
Source reference:
Article 33(6)
Source excerpt:
Participants in the net-zero regulatory sandbox shall remain liable under applicable Union and Member States’ liability law for any material harm inflicted on third parties as a result of the testing taking place in the net-zero regulatory sandbox.

Milestones

Date Type Description
2024-06-13 Adopted Adoption of the Regulation
Source reference:
Regulation heading
Source excerpt:
of 13 June 2024
2024-06-28 Other Publication in the Official Journal of the European Union
Source reference:
Official Journal heading
Source excerpt:
28.6.2024
2024-06-29 Entry into Force Entry into force of the Regulation
Source reference:
Article 49(1)
Source excerpt:
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
2024-06-29 Application Start Start of general application of the Regulation
Source reference:
Article 49(2)
Source excerpt:
It shall apply from 29 June 2024.
2024-09-30 Other Deadline for Member States to identify and report obligated oil and gas entities
Source reference:
Article 23(2)
Source excerpt:
By 30 September 2024, Member States shall identify and report to the Commission the entities referred to in paragraph 1 and their volumes in crude oil and natural gas production from 1 January 2020 to 31 December 2023.
2024-12-30 Other Deadline for establishing or designating single points of contact and publishing CO2 storage data
Source reference:
Article 6(1)
Source excerpt:
By 30 December 2024 Member States shall establish or designate one or more authorities as single points of contact at the relevant administrative level.
2025-03-01 Other Deadline for guidelines on the criteria for strategic projects
Source reference:
Article 13(2)
Source excerpt:
By 1 March 2025, the Commission shall adopt an implementing act setting out guidelines ensuring uniform conditions for the implementation of the criteria laid down in this Article.
2025-03-30 Other Deadline for sustainability requirements and auction criteria
Source reference:
Article 25(5)
Source excerpt:
By 30 March 2025, the Commission shall adopt an implementing act specifying minimum requirements on environmental sustainability for the public procurement procedures referred to in paragraph 1.
2025-03-30 Other Deadline for the delegated act amending the Annex
Source reference:
Article 46(7)
Source excerpt:
By 30 March 2025, the Commission shall adopt a delegated act in accordance with Article 44 to amend the Annex on the basis of the list of net-zero technologies set out in Article 4, in order to identify the sub-categories within net-zero technologies and the list of specific components used for those technologies.
2025-06-30 Other Deadline for obligated entities to submit their CO2 storage contribution plan
Source reference:
Article 23(4)
Source excerpt:
By 30 June 2025, the entities referred to in paragraph 1 shall submit to the Commission a plan specifying in detail how they intend to meet their contribution to Union CO2 injection capacity objective by 2030.
2025-12-30 Application Start Start of application of provisions on auctions and other public interventions
Source reference:
Article 49(4)
Source excerpt:
Articles 26 and 28 shall apply from 30 December 2025.
2026-06-30 Other Deadline for the first progress report by obligated entities and for national penalties
Source reference:
Article 23(6)
Source excerpt:
By 30 June 2026 and every year thereafter, the entities referred to in paragraph 1 shall submit a report to the Commission detailing their progress towards meeting their contribution.
2027-06-30 Other Deadline for the Commission's first report on the CO2 storage market
Source reference:
Article 24(1)
Source excerpt:
By 30 June 2027, the Commission shall carry out an assessment of the functioning of the market for captured CO2.
2027-12-31 Other Deadline for the first comprehensive assessment of auction criteria
Source reference:
Article 26(8)
Source excerpt:
By 31 December 2027 and every two years thereafter, the Commission shall carry out a comprehensive assessment of the application of the resilience and sustainability criteria for auctions for the deployment of energy from renewable sources and their effect on the accelerated deployment of renewable energy technologies.
2028-06-30 Other First evaluation of the Regulation by the Commission
Source reference:
Article 46(1)
Source excerpt:
By 30 June 2028 and every three years thereafter, the Commission shall evaluate this Regulation and present a report on its main findings to the European Parliament, to the Council and to the European Economic and Social Committee.
2029-12-31 Other Target date for gradually increasing the share of auctions using non-price criteria to 50%
Source reference:
Recital (70)
Source excerpt:
with a view to contributing to meeting the overall objectives of this Regulation and to reaching 50 % by the end of 2029.
2030-01-01 Other Target year for at least 50 million tonnes of annual CO2 injection capacity
Source reference:
Article 20(1)
Source excerpt:
An annual injection capacity of at least 50 million tonnes of CO2 shall be achieved by 2030
2040-01-01 Other Target year for a 15% Union share of world production
Source reference:
Article 5(1)(b)
Source excerpt:
with a view to reaching 15 % of world production by 2040

Linked regulations

Type Regulation
Amends Regulation (EU) 2018/1724
Cites European Climate Law
Cites European Climate Law
Cites Industrial Emissions Directive