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Net-Zero Industry Act In force

Overview

Jurisdiction
European Union
Topic
Environment
Instrument type
Regulation
Reference number
2024/1735
Valid from
2024-06-29
Valid to
2026-08-06
Modified date
2024-06-28
Listed at
2026-08-06
Withdrawn at
-
Description
Establishes an EU framework to strengthen the manufacturing ecosystem and supply chains for net-zero technologies, streamline permitting, promote resilient and sustainable technologies, develop CO2 storage infrastructure, and set requirements for public procurement, auctions, support schemes, skills and regulatory sandboxes.

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Sources

Source URL Crawler Publish date
https://publications.europa.eu/resource/celex/32024R1735 Schokolade

Logs

Type Status Started at Finished at
No jobs yet.

Rule sets

Label Effective
Net-zero technology manufacturing companies 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:
Entry into Force (2024-06-29)
Expires at milestone:
-
Conditions:
  • Products contains No Linked Attribute Value “net-zero technologies”
Energy-intensive industry decarbonisation companies 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:
Entry into Force (2024-06-29)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “CO2-eq emission reduction project”
  • Activities contains No Linked Attribute Value “CO2-eq emission reduction project”
Obligated oil and gas producers 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:
Entry into Force (2024-06-29)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “crude oil production” “natural gas production”
Companies participating in net-zero regulatory sandboxes 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:
Entry into Force (2024-06-29)
Expires at milestone:
-
Conditions:
  • Activities contains No Linked Attribute Value “developing innovative net-zero technologies” “developing other innovative technologies”
Contractors for resilience-relevant net-zero procurement contracts 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:
Entry into Force (2024-06-29)
Expires at milestone:
-
Conditions:
  • Products contains No Linked Attribute Value “solar technologies” “wind technologies” “battery technologies” “energy storage technologies” “heat pump technologies” “geothermal energy technologies” “hydrogen technologies” “sustainable biogas technologies” “sustainable biomethane technologies” “CCS technologies” “electricity grid technologies”

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 apply to the relevant Member State for recognition of a net-zero technology manufacturing project as a net-zero strategic project and submit evidence, a business plan and a first draft timetable.
Frequency:
One-time
Check frequency:
Event-triggered
Products/Services:
Net-zero technologies, their components and specific machinery, and energy-intensive industry decarbonisation projects
Checking responsibility:
Project promoter and relevant Member State
Check method:
Assessment of the application and submitted evidence by the relevant Member State
Rule set:
-
Source reference:
Article 14(1)-(2)
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. 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 meet the CO2 injection contribution Reporting -
Description:
Each company holding an authorisation for hydrocarbon prospecting, exploration or production, unless below the applicable production threshold, must submit to the Commission a detailed plan for meeting its individual contribution to Union-wide CO2 injection capacity by 2030.
Frequency:
One-time
Check frequency:
One-time
Products/Services:
CO2 storage projects and CO2 injection capacity
Checking responsibility:
Obligated companies and Commission
Check method:
Assessment of the submitted 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. Those plans shall: (a) confirm the entity's contribution, expressed in terms of targeted volume of new CO2 storage and injection capacity commissioned by 2030; (b) specify the means and the milestones for reaching the targeted volume.
Annual CO2 injection-capacity progress report Reporting -
Description:
Obligated companies must report annually on their progress towards meeting their contribution to Union-wide CO2 injection capacity.
Frequency:
Annual
Check frequency:
Annual
Products/Services:
CO2 storage and injection capacity
Checking responsibility:
Obligated oil and gas producers and Commission
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.
Compliance with third-country supply limits Other -
Description:
During the contract term, the contractor must not supply more than 50% of the value of the relevant technology or its main specific components from any individual third country determined by the Commission.
Frequency:
Continuous
Check frequency:
Event-triggered
Products/Services:
Net-zero technologies or their main specific components in public procurement contracts
Checking responsibility:
Successful tenderer or main contractor
Check method:
Review of contract performance and evidence supplied on request by the contracting authority
Rule set:
-
Source reference:
Article 25(7), second subparagraph, points (a)-(b)
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; an obligation for the duration of the contract that no more than 50 % of the value of the main specific components of the specific net-zero technology referred to in this paragraph is supplied or provided directly by the successful tenderer or by a subcontractor from each individual third country as determined by the Commission;
Liability for harm in a regulatory sandbox Other -
Description:
Participating companies remain liable under applicable liability law for material harm inflicted on third parties as a result of testing in the regulatory sandbox.
Frequency:
Event-triggered
Check frequency:
Event-triggered
Products/Services:
Innovative net-zero technologies and other innovative technologies
Checking responsibility:
Participating company and competent authority
Check method:
Supervision by the competent authority in the regulatory sandbox and public communication of significant risks
Rule set:
-
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.
Evidence of compliance with third-country supply limits Record Keeping -
Description:
The contractor must provide the contracting authority, upon request and at the latest upon completion of contract execution, with adequate evidence of compliance with the third-country supply limits.
Frequency:
Event-triggered
Check frequency:
Event-triggered
Products/Services:
Net-zero technologies or their main specific components in public procurement contracts
Checking responsibility:
Successful tenderer or main contractor
Check method:
Review of adequate evidence by the contracting authority at the latest upon completion of contract execution
Rule set:
-
Source reference:
Article 25(7), second subparagraph, point (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;
Publication of geological CO2 storage data Reporting -
Description:
Companies that are or have been holders of an authorisation for hydrocarbon prospection, exploration or production must make specified geological data on decommissioned or notified-for-decommissioning production sites and, where available, economic cost assessments publicly available, unless they have applied for an exploration permit.
Frequency:
One-time
Check frequency:
One-time
Products/Services:
Geological data relating to decommissioned hydrocarbon production sites and assessments of the costs of enabling CO2 injection
Checking responsibility:
Companies that are or have been holders of an authorisation under Directive 94/22/EC
Check method:
Publication of the data on a non-reliance basis, unless the exception for an applied-for exploration permit applies
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 of the European Parliament and of the Council 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, unless the entity has applied for an exploration permit in accordance with Directive 2009/31/EC

Measures

No measures.

Penalties

Description Kind Rule set
A proportionate contractual charge of at least 10% of the value of the contract’s specific net-zero technologies for non-compliance with the third-country supply limits. Monetary Fine -
Responsible authority:
Contracting authority or contracting entity
Source reference:
Article 25(7), second subparagraph, point (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.
Effective, proportionate and dissuasive penalties for infringements by obligated companies concerning their CO2 injection-capacity 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.

Milestones

Date Type Description
2024-06-13 Adopted Adoption of the Regulation
Source reference:
Final act
Source excerpt:
Done at Brussels, 13 June 2024.
2024-06-29 Entry into Force Entry into force and start of application of the Regulation
Source reference:
Article 49(1)-(2)
Source excerpt:
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union. 2. It shall apply from 29 June 2024.
2024-12-30 Other Deadline for establishing or designating single points of contact and publishing CO2 storage-capacity 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 net-zero 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 implementing acts on 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.
2025-06-30 Other Deadline for plans by obligated oil and gas producers to meet their contribution
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 the auction and other public-intervention provisions
Source reference:
Article 49(4)
Source excerpt:
Articles 26 and 28 shall apply from 30 December 2025.
2026-06-30 Other End of the transitional rule for public-procurement sustainability requirements; deadline for national penalties and annual progress reporting
Source reference:
Article 49(3)
Source excerpt:
3. Until 30 June 2026, Article 25(1) shall apply only to contracts concluded by central purchasing bodies as defined in Article 2(1), point (16), of Directive 2014/24/EU and Article 2(1), point (12), of Directive 2014/25/EU and for contracts of a value equal to or higher than EUR 25 million.
2030-01-01 Other Target year for CO2 injection capacity and manufacturing-capacity benchmarks
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 an increased Union share of global production
Source reference:
Article 5(1)(b)
Source excerpt:
an increased Union share for the corresponding technologies with a view to reaching 15 % of world production by 2040

Linked regulations

Type Regulation
Cites European Climate Law
Cites Industrial Emissions Directive
Related Critical Raw Materials Act
Cites Critical Raw Materials Act
Cites European Climate Law
Cites Environmental Impact Assessment Directive
Cites Directive 2009/31/EC
Cites Energy Taxation Directive
Cites Renewable Energy Directive III
Cites Renewable Energy Directive II
Related Regulation (EU) 2024/1252 of the European Parliament and of the Council
Cites Regulation (EU) 2024/1252
Cites Directive 2011/92/EU
Cites Council Directive 2003/96/EC
Cites Directive (EU) 2023/2413 of the European Parliament and of the Council
Cites Directive (EU) 2018/2001 of the European Parliament and of the Council