The case for supporting clean energy technologies
The deployment of clean energy technologies, such as solar and wind energy installations but also carbon storage, is essential for reaching the EU’s 2030 and 2050 climate targets. In 2030 net greenhouse gas emissions must be down by 55 percent as compared to 1990 levels, while by 2050, net emissions must come down to zero.
According to a 2023 report by the International Energy Agency, if countries around the globe fully implement their energy and climate pledges, the market for key clean energy technologies could increase more than three times by 2030 compared with its current value and jobs in the sector could rise from six million today to 14 million.
However, Europe has so far largely imported these technologies, while countries outside the EU have expanded their clean energy manufacturing capacity.
The objectives of the Net Zero Industry Act
In March 2023, the European Commission proposed the Net Zero Industry Act, with the intention to strengthen the European manufacturing capacity when it comes to clean energy technologies.
The act is part of the European Green Deal and will provide the basis for an affordable, reliable, and sustainable clean energy system. This will in turn increase the competitiveness and resilience of the EU’s industry.
The legislation is also intended to reduce the risk of replacing the EU’s past reliance on Russian fossil fuels with new strategic dependencies.