Changes from report parliamentary committee draft to plenary report

Added(21b) The reduction of the regulatory and administrative burdens as well as having a suitable regulatory framework is particularly important for SMEs. Therefore, the Commission should appoint an SME Envoy as an adviser to its President. The SME Envoy should have a mandate to ensure that the interests of SMEs are sufficiently reflected the Union's policies and legal acts. Every new Commission should be able to appoint an SME Envoy within six months of its own appointment.

RemovedArticle 3 – paragraph 1 – point c: (c) ‘innovative net-zero technologies’ means any technology included in the Strategic Energy Technology Plan referred to in Article -26.

Added(21c) The Transition Pathways that are being developed following the Updated EU Industry Strategy of 2021 should be updated to reflect the objectives of this Regulation and should identify enablers as well as bottlenecks for the transition and global competitiveness of Union industry.

RemovedArticle 3 – paragraph 1 – point d: (d) ‘net-zero technology manufacturing project’ means a planned industrial facility or extension or repurposing of an existing facility for manufacturing of net-zero technologies final products or components, materials or machinery without which net-zero technologies could not be produced;

Added(22) Pursuant to Regulation (EU) 2018/1999 of the European Parliament and of the Council Member States should submit updated drafts of their 2021-2030 National Energy and Climate Plans (NECPs) in June 2023. As emphasised in the Commission’s Guidance to Member States for the update of the 2021-2030 national energy and climate plans , the updated plans should describe Member States’ objectives and policies to facilitate the scale-up of manufacturing projects of commercially available energy efficient and low-carbon technologies, equipment and key components within their territory. Those plans should also describe Member States’ objectives and policies to achieve such scale-up through diversification efforts in third countries, and to enable their industries to capture and store CO2 emissions permanently in geological storage sites. Those national energy and climate plans should form the basis upon which the need for net-zero technologies are determined.

RemovedArticle 3 – paragraph 1 – point e: deleted

Added(23) In addition, the Communication on the Green Deal Industrial Plan for the Net-Zero Age sets out a comprehensive approach to support a clean energy technology scale up based on four pillars. The first pillar aims at creating a regulatory environment that simplifies and fast-tracks permitting for new net-zero technology manufacturing and assembly sites and facilitates the scaling up of the net-zero industry of the Union. The second pillar of the plan is to boost investment in and financing of net-zero technology production, through the revised Temporary Crisis and Transition Framework adopted in March 2023 and the creation of a European Sovereignty fund to preserve the Union’s edge on critical and emerging technologies relevant to the green and digital transitions. The third pillar relates to developing the skills needed to make the transition happen and increase the number of skilled workers in the clean energy technology sector. The fourth pillar focuses on trade and the diversification of the supply chain of critical raw materials. That includes creating a critical raw materials club, working with like-minded partners to collectively strengthen supply chains and diversifying away from single suppliers for critical input.

RemovedArticle 3 – paragraph 1 – point f: (f) ‘permit granting process’ means a process covering all relevant administrative permits to plan, build, expand and operate net-zero technology manufacturing projects, including building, chemical and grid connection permits and environmental assessments and authorisations where these are required, and encompassing all administrative applications and procedures from the receipt of the project application to the national competent authority until the notification of the comprehensive decision on the outcome of the procedure by the responsible national competent authority;

Added(24) Under the first pillar, the Union should develop and maintain an industrial basis for the provision of net-zero technology solutions to secure its energy supply, while also living up to its ambitions on climate neutrality. To support that goal and to avoid dependencies for the supply of net-zero technologies that would delay the Union’s greenhouse gas emission reductions efforts or put at risk the security of supply of energy, this Regulation shall set out provisions to encourage demand for sustainable and resilient net-zero technologies.

RemovedArticle 3 – paragraph 1 – point j: deleted

Added(25) Directives 2014/23/EU, 2014/24/EU and 2014/25/EU of the European Parliament and of the Council already allow contracting authorities and entities awarding contracts through public procurement procedures to rely, in addition to price or cost, on additional criteria for identifying the most economically advantageous tender. Such criteria concern for instance the quality of the tender including social, governance, environmental and innovative characteristics. When awarding contracts for net-zero technology through public procurement, contracting authorities and contracting entities should duly assess the tenders’ contribution to environmental and social sustainability and resilience in relation to a series of criteria relating to the tender’s environmental sustainability, innovation, system integration and to resilience. Contracting authorities and entities must ensure that procedures treat providers established in other Member States equally to national providers and to ensure non-discrimination when establishing criteria.

RemovedArticle 3 – paragraph 1 – point q a (new): (qa) ‘CO2 transport networks’ means multimodal CO2 transport infrastructure, including the network of pipelines, including associated booster stations, for the transport of CO2 to the storage site;

Added(26) Social sustainability criteria can already be applied under existing legislation and can include working conditions and collective bargaining in line with the European Pillar of Social Rights in line with Article 30 (3) of Directive 2014/23/EU, Article 18 (2) of Directive 2014/24/EU and Article 36 (2) of Directive 2014/25/EU. Contracting authorities should consider the tenders contribute to social sustainability by taking the appropriate measures to ensure that in the performance of public contracts economic operators comply with applicable obligations in the fields of Union and national social and labour law▌ as well as in collective agreements or by the international environmental, social and labour law provisions listed in Annex X of Directive 2014/23/EU, Annex X to Directive 2014/24/EU and Annex XIV to Directive 2014/25/EU, and offer attractive employment.

RemovedArticle 4 – paragraph 1: 1. By …[3 months after the date of entry into force of this Regulation], Member States shall designate one national competent authority which shall be responsible for facilitating and coordinating the permit-granting process for net-zero technology manufacturing projects and to provide advice on reducing administrative burden in line with Article 5.

Added(27) Without prejudice to Union legislation applicable to a specific technology, including under the Proposal for a Regulation of the European Parliament and of the Council establishing a framework for setting ecodesign requirements for sustainable products44 and the Proposal for a Regulation of the European Parliament and of the Council concerning batteries and waste batteries45 , and unless otherwise indicated therein, when evaluating the environmental sustainability of net-zero solutions procured on the basis of this Regulation, contracting authorities and contracting entities are encouraged to take into account various elements with an impact on the climate and the environment. These may include, for instance, the durability and reliability of the solution; the ease of repair and maintenance; the ease of upgrading and refurbishment; the ease and quality of recycling; the use of certain substances; the consumption of energy, water and other resources in one or more life cycle stages of the product; the weight and volume of the product and its packaging; the incorporation renewable materials or of used components; the quantity, characteristics and availability of consumables needed for proper use and maintenance; the environmental footprint of the product and its life cycle environmental impacts; the carbon footprint of the product; the microplastic release; emissions to air, water or soil released in one or more life cycle stages of the product; the amounts of waste generated; the conditions for use. In line with the Union’s Cybersecurity Strategy, contracting authorities for tenders under this Regulation should reject offers which have not been certified under the relevant cyber security certification scheme.

RemovedArticle 5 – paragraph 1 – introductory part: Member States shall provide the following information on administrative processes relevant to net-zero technology manufacturing projects online and in a centralised and easily accessible manner:

Added(28) For the purposes of ensuring a more secure supply by taking into account within a public procurement procedure the need to diversify sources of supply of net-zero technologies away from single sources of supply within the meaning of Article 19 (2), and without prejudice to the Union’s international commitments, the supply should at least be deemed insufficiently diversified where a single source supplies for more than 65% of the demand for a specific net-zero technology within the Union.

RemovedArticle 6 – paragraph 1 – point a: (a) 9 months for the construction of net-zero technology manufacturing projects with a yearly manufacturing capacity of less than 1 GW;

Added(29) For the purposes of setting up schemes benefitting households, businesses, or consumers which incentivise the purchase of net-zero technology final products, and without prejudice to the Union’s international commitments, the supply should be deemed insufficiently diversified where a single source supplies more than 50% of the total demand within the Unionfor a specific net-zero technology ▌. To ensure a consistent application, the Commission should publish a yearly list starting on the date of application of this Regulation, of the distribution of the origin of net zero technology final products which fall under this category, broken down by the share of Union supply originating in different sources in the last year for which data is available.

RemovedArticle 6 – paragraph 1 – point b: (b) 12 months for the construction of net-zero technology manufacturing projects, with a yearly manufacturing capacity of more than 1 GW.

Added(30) Council Decision 2014/115/EU approved in particular the amendment to the World Trade Organisation Agreement on Government Procurement (the ‘GPA’)46. The aim of the GPA is to establish a multilateral framework of balanced rights and obligations relating to public contracts with a view to achieving the liberalisation and expansion of world trade. For contracts covered by the Union’s Appendix I to the GPA, as well as by other relevant international agreements by which the Union is bound, including free trade agreements and the Article III:8(a) of the General Agreement on Tariffs and Trade of 1994 for procurement by governmental agencies of products purchased with a view to commercial resale or with a view to use in the production of goods for commercial sale, contracting authorities and contracting entities should not apply the requirements of Article 19 (2a) and Article 19(4a), point (a) to economic operators of sources of supply that are signatories to the agreements.

RemovedArticle 6 – paragraph 2: 2. For net-zero technology manufacturing projects for which a yearly manufacturing capacity is not measured in GW, the permit-granting process shall not exceed a time limit of 12 months.

Added(31) The application of the provisions on resilience in public procurement procedures set out in Article 19 of this Regulation should be without prejudice to the application of Regulation (EU)2022/1031/EU of the European Parliament and the Council, Article 25 of Directive 2014/24/EU▌, and Articles 43 and 85 of Directive 2014/25/EU▌, in accordance with the Commission’s guidance of 2019. The same way, public procurement provisions should continue to apply to works, supplies and services subject to Article 19, including Article 67(4) of Directive 2014/24/EU and any implementing measures resulting from the Proposal for a Regulation establishing a framework for setting ecodesign requirements for sustainable products and the Regulation (EU) 2023/1542 of the European Parliament and of the Council.

RemovedArticle 6 – paragraph 6: 6. No later than one month following the receipt of the permit-granting application, competent authorities shall validate the application or, if the project promoter has not sent all the information required to process an application, request the project promoter to submit a complete application within fourteen days from that request. The date of the acknowledgement of the initial receipt of the application by the national competent authority referred to in Article 4(1) shall serve as the start of the permit granting process.

Added(32) The weighting of criteria on the sustainability and resilience contribution of the tender in relation to public procurement procedures is a minimum threshold. Within this minimum threshold, the contracting authorities and contracting entities may differentiate the weighting of the individual criteria, without ignoring one completely. Contracting authorities and contracting entities may always set a higher threshold for one or several relevant criteria on sustainability and resilience contribution. Given the importance of increasing the resilience of the Union’s energy system, the contracting authorities and contracting entities should pay significant attention to the resilience contribution.

RemovedArticle 6 – paragraph 9 a (new): 9a. National competent authorities shall ensure that the lack of reply of the relevant administrative bodies within the applicable time limits referred to in this Article results in the specific intermediary steps to be considered as approved, except where the principle of administrative tacit approval does not exist in the national legal system. This provision shall also apply to final decisions on the outcome of the process and for these decisions an explicit notice of tacit approval shall be send to the project promoter within a week after the tacit approval came into effect. All decisions, including a notice of tacit approval, shall be made publicly available.

Added(33) In order to limit administrative burden resulting from the need to take into account criteria relating to the sustainability and resilience contribution of the tender, in particular for smaller public buyers and for contracts of lower value which do not have an important impact on the market, the application of the relevant provisions of this Regulation should be deferred for two years for public buyers which are not central purchasing bodies and for contracts of a value below EUR 25 million.

RemovedArticle 6 a (new): Article 6a / Priority status of net-zero technology manufacturing projects / 1. Project promoters and all authorities that, under national law, are competent to issue various permits and authorisations related to the planning, design and construction of immovable assets, including energy infrastructure, shall ensure that for net-zero technology manufacturing projects those processes are treated in the most rapid way possible in accordance with Union and national law. / 2. Without prejudice to obligations provided for in Union law, Member States shall grant net-zero technology manufacturing projects the status of the highest national significance possible, where such a status exists in national law, and be treated accordingly in the permit-granting processes including those relating to environmental assessments and if national law so provides, to spatial planning. / 3. Net-zero technology manufacturing projects shall be considered to contribute to the security of supply of net-zero technologies in the Union and therefore to be in the public interest. With regard to the environmental impacts addressed in Articles 6(4) and 16(1)I of Directive 92/43/EEC, Article 4(7) of Directive 2000/60/EC and Article 9(1)(a) of Directive 2009/147/EC, net-zero technology manufacturing projects in the Union shall be considered as being of public interest and may be considered as having an overriding public interest provided that all the conditions set out in those Directives are fulfilled. / 4. A…

Added(34) For the purposes of the application of the provisions on public procurement according to Article 19 of this Regulation, where a product is covered by a delegated act adopted under Regulation (EU) 2017/1369 of the European Parliament and of the Council51 , contracting authorities or contracting entities should purchase only the products that comply with the obligation laid down in Article 7 (2) of that Regulation.

RemovedArticle 8 – paragraph 1: 1. When preparing plans, including zoning, spatial plans and land use plans, national, regional and local authorities shall, where appropriate, include in those plans provisions for the development of net-zero technology manufacturing projects as well as Net-Zero Industry Valleys. Priority shall be given to artificial and built surfaces, industrial sites, brownfield sites, and, where appropriate, greenfield sites not usable for agriculture and forestry.

Added(35) Households, business and final consumers are an essential part of the Union’s demand for net-zero technologies final products and public support schemes to incentivize the purchase of such product by households, in particular for vulnerable low- and lower middle-class income households and consumers, are important tools to accelerate the green transition. Under the solar rooftop initiative announced in the EU solar strategy52, Member States should for instance set-up national programmes to support the massive deployment of rooftop solar energy. In the REPowerEU plan, the Commission called Member States to make full use of supporting measures which encourage switching to heat pumps. Such support schemes set up nationally by Member States or locally by local or regional authorities should also contribute to improving the sustainability and resilience of the Union net-zero technologies. Public authorities should for instance provide higher financial compensation to beneficiaries for the purchase of net-zero technology final products that will make a higher contribution to resilience in the Union. Public authorities should ensure that their schemes are open, transparent and non-discriminatory, so that they contribute to increase demand for net-zero technology products in the Union. Public authorities should also limit the additional financial compensation for such products so as not to slow down the deployment of the net-zero technologies in the Union. To increase the efficiency of such schemes Member States should ensure that information is easily accessible both for consumers and for net-zero technology manufacturers on a free website. The use by public authorities of the sustainability and resilience contribution in schemes targeted at consumers or households should be without prejudice to State aid rules and to WTO rules on Subsidies.

RemovedChapter II – Section II – title: Net-zero Industry Valleys

Added(36) When designing schemes benefitting households, businesses or consumers which incentivise the purchase of net-zero technology final products listed in Article 3 of this Regulation, Member States, regional or local authorities, bodies governed by public law or associations formed by one or more such authorities or one or more such bodies governed by public law, should ensure the respect of the Union’s international commitments, including by ensuring that schemes are compatible with WTO provisions and do not reach a magnitude that causes serious prejudice to the interest of WTO members.

RemovedArticle 10: deleted

Added(37)▌A net-zero Europe platform (Net-Zero Europe Platform) should also play an important role in accelerating the implementation of the sustainability and resilience contribution by Member States and public authorities in their public procurement and auctioning practices and the Commission should also assist Member States in the design of schemes targeted at households, businesses and consumers to build synergies and exchange best practices. It is important that both the contracting authorities or contracting entities and the producing companies have a clear understanding of each of the sustainability and resilience criteria. Therefore, the Commission should, in close collaboration with the Net-Zero Europe Platform, adopt an implementing act specifying the criteria to assess the resilience and sustainability contribution, with a particular attention for SMEs, who should have a fair chance to participate in the substantial market for public procurement. Coherence with all existing legislation will be key. Furthermore, that implementing act should clarify the derogations provided for in Article 19(4). Besides, the Commission should, in close collaboration with the Net-Zero Europe Platform, issue guidance on how to link the sustainability and resilience criteria with future legislation. That guidance can further provide concrete and specific examples and best practices. In order to be coherent with all future legislation, the Commission should update its guidance at least every six months.

RemovedArticle 10 a (new): Article 10a / Net-Zero Industry Valleys / 1. In order to fulfil the objectives of this Regulation, each Member State shall designate geographical areas as Net-Zero Industry Valleys (‘Valleys’). / 2. The objectives of the Valleys shall be to: / (a) create clusters of net-zero industrial activity which lead to efficiency gains for all industrial actors involved; / (b) increase the attractiveness of the Union as a location for manufacturing activities; / (c) further streamline, beyond the streamlining set out in other Chapters of this Regulation, the administrative procedures for setting up net-zero manufacturing capacities;

Added(38) In order to ensure that public procurement and auctions to deploy renewable energy sources truly contribute to the Union's resilience, these activities need to be predictable for industry. To enable the industry to adjust its production on time, contracting authorities and contracting entities should inform the market in advance of their estimated procurement needs for net-zero technology products. Auctions should also reflect that inflation, together with the long lead time of renewable energy deployment projects, creates a significant risk for businesses and this might discourage businesses from bidding. To provide certainty about the business case of an auction bid, Member States should ensure that all auctions include an inflation indexation mechanism. Furthermore, Member States should, where appropriate, exclude negative bids from auctions as these bids might lead to unexpectedly high energy prices for customers of the deployed renewable energy production.

RemovedArticle 10 b (new): Article 10b / Designation of Valleys / 1. A decision by a Member State to designate a Valley shall be accompanied by a plan (Plan) setting out: / (a) which specific Net-Zero manufacturing activities are covered by the Valley / (b) concrete national measures to increase the attractiveness of the Valley as a location for manufacturing activities. / (c) the results of the environmental assessment as well as the measures the Member State will take to mitigate negative environmental impacts, referred to in paragraph 2. / 2. As part of the decision-making process for designating a Valley, Member States shall carry out any environmental assessment required by Union or national law for the manufacturing activities that are to take place in the Valley. Any environmental assessment requirements for a permit for new or expanded manufacturing capacity that is in line with the Plan shall be considered fulfilled by an environmental assessment carried out pursuant to this paragraph. / 3. A decision designating a Valley pursuant to [Articles 10 and this Article] shall include a date of application and a date of expiry. A Member State may renew such a decision Member States shall make such any decisions public

Added(39) As indicated in the Communication on the Green Deal Industrial Plan for the Net-Zero Age, published on 1 February 2023, the Union’s industry’s market shares are under strong pressure, due to subsidies in third countries which undermine a level playing field. Some third countries are rolling out support schemes that aim to anchor and attracting clean tech industry. This situation presents a competitive challenge for the Union to maintain and develop its own industry. This translates in a need for a rapid and ambitious reaction from the Union in modernising its legal framework to compete globally defending open and fair trade by making full and efficient use of all available tools including trade defense instruments, and by promoting Union standards for net-zero technologies.

RemovedArticle 11: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added(39a) Considering the Union's goal to reduce strategic dependencies on third countries for net-zero technologies, it is crucial that public support mechanisms, such as procurement and auctions, do not exacerbate such dependencies. Therefore, limitations should be set on the proportion of products in supply contracts sourced from third countries, in accordance with Regulation (EU) No 952/2013 of the European Parliament and of the Council and Directive 2014/25/EU of the European Parliament and of the Council. Furthermore, Regulation (EU) 2022/1031 and Regulation (EU) 2022/2560 of the European Parliament and of the Council should be used to their fullest extent in order to ensure that Union companies do not face unfair competition for public contracts.

RemovedArticle 12: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added(39b) To achieve the objectives of this Regulation, a dedicated source of public funding is necessary to support the projects carried out pursuant to it. That funding should ensure that companies across the Union have access to the needed funding, regardless of the fiscal capacities of the Member States in which the project is to be developed. The 2021-2027 Multiannual Financial Framework (MFF) as greed in 2020 does not provide for this. The Strategic Technologies for Europe Platform ‘STEP’ partly addresses the needed support for projects under this Regulation. While the STEP relies on the reprogramming and reinforcement of existing programmes for supporting strategic investments, it is also an important element for testing the feasibility and preparation of new interventions as a step towards a European Sovereignty Fund. The evaluation of STEP in 2025 is to assess the relevance of the actions undertaken and serve as basis for assessing the need for an upscaling of the support towards strategic sectors.

RemovedArticle 13: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added(40) Access to public and private finance is key for ensuring the Union’s open strategic autonomy and for establishing a solid and competitive manufacturing base for net-zero technologies and their supply chains across the Union. The majority of investments necessary to reach the Green Deal objectives will come from private capital attracted by the growth potential of the net-zero ecosystem. Well-functioning, deep and integrated capital markets will therefore be essential to raise and channel the funds needed for the green transition and net-zero technology manufacturing projects. Swift progress towards the Capital Markets Union is thus necessary for the Union to deliver on its net-zero objectives. The sustainable finance agenda (and blended finance) also plays a crucial role in scaling up investments into the net-zero technologies, while guaranteeing the competitiveness of the sector. As indicated in the Staff Working Document accompanying this Regulation, investment needs amount to around EUR 92 billion over the period 2023-2030, with a range between about EUR 52 billion to around EUR 119 billion depending on various scenarios, which would result in public funding requirements of EUR 16 to 18 billion. Considering that this assessment only takes into account five specific technologies, the real investment need is likely to be significantly higher.

RemovedArticle 14: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added(41) Where private investment alone is not sufficient, the effective roll-out of net-zero manufacturing projects may require public support in the form of State aid. Such aid must have an incentive effect and be necessary, appropriate and proportionate. The existing State aid guidelines that have recently undergone an in-depth revision in line with the twin transition objectives provide ample possibilities to support investments for projects in the scope of this Regulation subject to certain conditions. Member States can have an important role in easing access to finance for net-zero technologies manufacturing projects by addressing market failures through targeted State aid support. The Temporary Crisis and Transition Framework (TCTF) adopted on 9 March 2023 aims at ensuring a level playing field within the internal market, targeted to those sectors where a third-country delocalisation risk has been identified, and proportionate in terms of aid amounts. It would enable Member States to put in place measures to support new investments in production facilities in defined, strategic net-zero sectors, including via tax benefits. The permitted aid amount can be modulated with higher aid intensities and aid amount ceilings if the investment is located in assisted areas, in order to contribute to the goal of convergence between Member States and regions. Appropriate conditions are required to verify the concrete risks of diversion of the investment outside the European Economic Area (EEA) and that there is no risk of relocation within the EEA to avoid a fragmentation of the internal market. To mobilise national resources for that purpose, Member States may use a share of the Union’s Emissions Trading System (EU ETS) revenues that Member States have to allocate for climate-related purposes.

RemovedArticle 15: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added(41a) Multiple sources of financing should be made fully available such as unused amounts of the Recovery and Resilience Facility, dedicated support from the EU Innovation Fund, dedicated financing schemes from the European Investment Bank, and utilisation to the greatest extent possible, of all MFF funds that have not yet been utilised. More investments form the private sector should be stimulated through dedicated State guarantees, especially when it comes to industrial investments in net-zero technology manufacturing projects, including net-zero strategic projects.

RemovedArticle 15 a (new): Article 15a / Net-Zero financing / 1. The Commission and the Member States shall facilitate access to financing for net-zero technology manufacturing projects by both: / (a) accelerating investment, including leveraging funding from both public and private sectors; / (b) providing and coordinating support to net-zero technology manufacturing projects facing difficulties in accessing finance. / 2. The Commission and the Member States shall undertake activities to accelerate and crowd-in private investments in net-zero technology manufacturing projects. Such activities may, without prejudice to Article 107 and Article 108 of the TFEU, include providing and coordinating support to net-zero technology manufacturing projects facing difficulties in accessing finance. / 3. The Net-Zero Europe Platform as established in Article 28 shall discuss financial needs and bottlenecks of net-zero technology manufacturing projects, potential best practices, in particular to develop EU cross-border supply chains, notably based on regular exchanges with and recommendations of the Net-Zero Industry Expert Group. / 4. The Net-Zero Europe Platform shall, at the request of a Member State or the Commission, discuss and advise on how the financing of a specific project can be completed, taking into account the funding already secured and considering at least the following elements: / (a) additional private sources of financing; / (b) support through resources from the European Investment Bank Group or…

Added(42) Several Union funding programmes, such as the Recovery and Resilience Facility, InvestEU, cohesion policy programmes or the Innovation Fund are also available to fund investments in net-zero technology manufacturing projects. The current EU budget is not sufficient for supporting the objectives of this Regulation or for ensuring a level-playing field among Member States. The revision of the 2021-2027 MFF should therefore provide for a European budget fit for purpose. In this regard, the STEP should also provide additional financial means partly dedicated to net-zero manufacturing projects contributing to the reduction of strategic dependencies of the Union and the competitiveness of its industry.

RemovedArticle 16 – paragraph 1: An annual injection capacity of at least 50 million tonnes of CO2 shall be achieved by 2030, in storage sites such as depleted oil and gas fields and saline aquifers, located in the territory of the European Union, its exclusive economic zones or on its continental shelf within the meaning of the United Nations Convention on the Law of the Sea (UNCLOS) and which are not combined with Enhanced Hydrocarbon Recovery (EHR).

Added(43) The amended Recovery and Resilience Facility Regulation54 made available an additional EUR 20 billion of non-repayable support to Member States in order to promote energy efficiency and replace fossil fuels, amongst others through EU net- zero industry projects. As pointed out in the Commission Guidance on the REPowerEU chapters, Member States are encouraged to include in the REPowerEU chapter of their recovery and resilience plans, measures supporting investments in net-zero technologies manufacturing and industrial innovation, in accordance with Regulation (EU) 2021/241 of the European Parliament and of the Council.

RemovedArticle 16 – paragraph 1 a (new): The storage sites referred to in paragraph 1 shall be designed to operate for a minimum of five years. All storage sites shall respect the principles of third-party access, non-discriminatory tariffs and transparency, as defined in Directive 2009/73/EC.

Added(43a) With the increase of EU ETS prices, revenues from the EU ETS for Member States have increased substantially. To promote the decarbonisation of Union industry, Member States should significantly increase their allocation of national revenues stemming from the EU ETS to support the decarbonisation of industry and should therefore allocate at least 25% of their national revenues stemming from the EU ETS to support the objectives of this Regulation.

RemovedArticle 16 – paragraph 1 b (new): The Commission shall no later than 31 December 2026 propose to the European Parliament and Council requirements for the annual CO2 injection capacity to be provided by 2035, 2040 and 2050, paying regard to the needs of Member States across the Union.

Added(44) InvestEU is the Union flagship programme to boost investment, especially the green and digital transition, by providing financing and technical assistance, for instance through blending mechanisms. Such approach contributes to crowd in additional public and private capital. In addition, Member States are encouraged to contribute to the InvestEU Member State compartment to support financial products available to net-zero technology manufacturing, without prejudice to applicable State aid rules.

RemovedArticle 16 – paragraph 1 c (new): Every two year after the date of entry into force of this Regulation, the Commission shall report on the progress achieved towards the Union annual injection capacity target. The report shall include an overview of the geographical spread of storage sites across the Union.

Added(45) Member States can provide support from cohesion policy programmes in line with applicable rules under Regulation (EU) 2021/1060 of the European Parliament and of the Council to encourage the take up of net-zero strategic projects as well as net-zero technology manufacturing projects in all regions, especially in less developed regions transition regions and Just Transition Funds territories , through investment packages of infrastructure, productive investment in innovation, manufacturing capacity in SMEs, services, training and upskilling measure, including support to capacity building of the public authorities and promoters. The applicable co-financing rates set in programmes may be up to 85% for less developed regions and up to 60% or 70% for transition regions depending on the fund concerned and the status of the region but Member States may exceed these ceilings at the level of the project concerned, where feasible under State aid rules. The Technical Support Instrument can help Member States and regions in preparing net-zero growth strategies, improve the business environment, reducing red tape and accelerating permitting. Member States should be encouraged to promote the sustainability of net-zero▌ projects by embedding these investments in European value chains, building notably on interregional and cross border cooperation networks. The adoption of such measures should be considered in particular with regard to Valleys.

RemovedArticle 17 – paragraph 2 – point c: (c) the national support measures that have been adopted and measures that could be adopted to prompt projects referred to in points (a) and (b).