Changes from report parliamentary committee draft to plenary report

Added(73) To the extent that any of the measures envisaged by the present Regulation constitute State aid, the provisions concerning such measures are without prejudice to the application of Articles 107 and 108 of the TFEU.

Added(74) Since the objective of this Regulation cannot be sufficiently achieved by the Member States and can rather, by reason of the scale or effects of the action, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

AddedHAVE ADOPTED THIS REGULATION:

Added1. This Regulation establishes the framework of measures to ensure a coordinated approach, throughout the Union, to the innovation and scaling up of the manufacturing capacity of net-zero technologies as well as of the components, materials and machinery along the supply chains of those technologies that are indispensable for their production and functioning in the Union to :

Added(a) support the Union’s climate targets and climate neutrality objective, as defined by Regulation (EU) 2021/1119;

Added(b) foster the Union’s international industrial competitiveness in order to contribute to the creation of quality jobs;

Added(c) improve the Union’s access to a secure and sustainable supply of net-zero technologies;

Added(d) strengthen Union’s open strategic autonomy;

Added(e) safeguard the resilience of the corresponding Union’s supply chains; and

Added(f) achieve the decarbonisation of the Union’s economy and society.

Added2. To achieve the general objective referred to in paragraph 1, this Regulation contains measures with a view to ensuring:

Added(a) the reduction of strategic dependencies in the Union of the strategic net-zero technologies as well as of the components, materials and machinery along the supply chains of those technologies that are indispensable for their production and functioning and that by 2030 reaches a manufacturing capacity corresponding to :

Added(i) at least 40 % of the Union’s annual deployment needs for the corresponding technologies necessary to achieve the Union’s climate and energy targets, based on the technological deployment planned across the Union according to the national energy and climate plans prepared and submitted by the Member States pursuant to Regulation (EU) 2018/1999; and

Added(ii) at least 25 % of global demand for the corresponding technologies;(b) the guaranteed free movement of net zero technologies and related service placed on the internal market.

Added3. Where, based on the report referred to in Article 35, the Commission concludes that the Union is likely not to achieve the objectives set out in paragraphs 1 and 2, it shall assess the feasibility and proportionality of proposing measures or exercising its powers at Union level in order to ensure the achievement of those objectives. In particular, the Commission shall assess the possibility of establishing including by means of delegated acts in accordance with Article 33, supplementing this Regulation, more granular targets for key technologies and components in order to ensure the achievement of those objectives. The Commission shall consult the Net-Zero Europe Platform to determine which measures or powers to apply.

AddedWith the exception of Articles 26 and 27 of this Regulation, which apply to net-zero innovative technologies, this Regulation applies to net-zero technologies, as listed in Article 3a(1), well as to the components, materials and machinery along the supply chains of those technologies that are indispensable for their production and functioning. Raw materials processed materials and components falling under the scope of Regulation (EU) …/… [add footnote with publication references of the Critical Raw Materials Regulation] and under the scope of Regulation (EU) 2023/1781 shall be excluded from the scope of this Regulation.

Added1. For the purpose of this Regulation, the following definitions shall apply:

Added(a) ‘net-zero technologies’ means the technologies listed in Article 3a(1) ;

Added(b) ‘component’ means a manufactured element of a net-zero technology final product ;

Added(ba) ‘materials’ means any raw or processed materials needed for the production of a component of a net-zero technology or of the final product;

Added(c) ‘innovative net-zero technologies’ means technologies that comprise a genuine innovation, which are currently not available on the internal market and improve on the dominant comparable net-zero technology in at least one way as well as any technology included in the Strategic Energy Technology Plan referred to in Article 26d;

Added(ca) 'other innovative technologies’ means technologies with potential to enable the transition to a climate neutral, clean economy and reduce strategic dependencies, which comprise genuine innovation not currently available on the internal market and which are advanced enough to be tested in a controlled environment;

Added(cb) ‘pre-commercial innovative net-zero technologies’ means innovative net-zero technologies that are not commercially available but that are advanced enough to be tested in a controlled environment;

Added(cc) ‘new commercial net-zero technologies’ means net-zero technologies which are not yet available on a large-scale commercial basis, which have a low market share, which improve on the dominant comparable technologies in at least one way, and which carry a clear degree of risk when included in a procurement;

Added(cd) 'pre-commercial procurement' means the procurement of pre-commercial innovative net-zero technologies involving risk-benefit sharing under market conditions, and competitive development in phases, where there is a clear separation between the development activities of the procured products and the deployment of commercial volumes of the end-products;

Added(ce) 'public procurement of innovative solutions' means procurement for which contracting authorities act as a launch customer for commercial innovative net-zero technologies, which may include conformity testing;

Added(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 along the supply chains of those technologies that are indispensable for their production and functioning;

Added(e) ‘net-zero strategic project’ means a net-zero technology manufacturing project which is selected in accordance with criteria laid down in Article 10;

Added(ea) ‘net-zero industry valley’ or ‘Valley’ means a specific land area which has been designated by a Member State for the purpose of promoting the construction or expansion of manufacturing facilities in the net-zero industry supply chain;

Added(f) ‘permit granting process’ means a process covering all relevant administrative permits to plan, build, expand and operate net-zero technology manufacturing projects, such as net-zero strategic 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 ▌application to the designated authority until the notification of the comprehensive decision on the outcome of the procedure by the responsible national competent authority or, where relevant, a responsible grid operator;

Added(g) ‘comprehensive decision’ means the decision or set of decisions taken by Member State authorities not including courts or tribunals that determines whether or not a project promoter is authorised to implement a net-zero technology manufacturing project, without prejudice to any decision taken in the context of an administrative appeal procedure;

Added(h) ‘project promoter’ means any undertaking or consortium of undertakings developing a net-zero technology manufacturing project or a net-zero strategic project;

Added▌

Added(ia) ‘net-zero regulatory sandbox’ means a scheme that enables undertakings to test innovative net-zero technologies and other innovative technologies in a controlled real-world environment, under a specific plan, developed and monitored by a competent authority;

Added▌ (k) ‘authority concerned’ means an authority that, under national law, is competent to issue permits and authorisations related to the planning, design and construction of immovable assets, including energy infrastructure;

Added(l) ‘public procurement procedure’ means any of the following:

Added(i) any type of award procedure covered by Directive 2014/24/EU for the conclusion of a public contract or Directive 2014/25/EU for the conclusion of a supply, works and service contract;

Added(ii) a procedure for the award of works or a service concession covered by Directive 2014/23/EU;

Added(m) ‘contracting authority’ in the context of public procurement procedures, means contracting authority as defined in Article 6 of Directive 2014/23/EU, Article 2(1), point (1) of Directive 2014/24/EU and Article 3 of Directive 2014/25/EU;

Added(n) ‘contracting entity’ in the context of public procurement procedures, means contracting entity as defined in, Article 7 of Directive 2014/23/EU and Article 4 of Directive 2014/25/EU;

Added(o) ‘contract’, in the context of public procurement procedures, means a public contract as defined in Article 2(1), point (5) of Directive 2014/24/EU, ‘contracts’ as defined in ‘supply, works and service contracts’ as defined in Article 2, point (1), of Directive 2014/25/EU, and ‘concessions’ as defined in Article 5, point (1), of Directive 2014/23/EU;

Added(p) ‘auction’ means a mechanism for competitive tendering procedures, not falling under the definition of ‘concessions’ according to Article 5, point (1), of Directive 2014/23/EU;

Added(q) ‘CO2 injection capacity’ means the annual amount of CO2 that can be injected in an operational geological storage site, permitted under Directive 2009/31/EC, including saline aquifers, provided with the means of capturing CO² and transporting it to the site, and with the purpose to reduce emissions or increase carbon removals, in particular from large scale industrial installations and which is measured in tonnes per annum;

Added(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(r) ‘energy system integration’ means solutions for the planning and operating of the energy system as a whole, across multiple energy carriers, infrastructures, and consumption sectors, by creating stronger links between them with the objective of delivering fossil-free, reliable and resource-efficient energy services, at the least possible cost for society.

Added(s) ‘manufacturing capacity’ means the total amount of output capacity of the net-zero technologies produced in a manufacturing project. If the manufacturing project does not produce final products but specific components or specific machinery primarily used for the production of such products, then manufacturing capacity refers to output capacity of the final product that would use such components or specific machinery to be produced.

AddedNet-zero technologies

Added1. The net-zero technologies within the scope of this Regulation shall be:

Added(a) technologies used for production of energy from renewable sources as defined in Directive (EU) 2018/2001;

Added(b) nuclear fission and fusion energy technologies, including nuclear fuel cycle technologies;

Added(c) energy storage technologies;

Added(d) carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), removal, capture, transport, injection (EPP), storage and utilisation technologies;

Added(e) hydrogen (H2) transport infrastructure technologies;

Added(f) electrolyser and fuel cell technologies;

Added(g) electric, hydrogen (H2), sustainable alternative fuels as defined in Regulation (EU) .../...(OJ to include reference to Sustainable maritime fuels |Regulation 2021/0210(COD)), and wind propulsion technologies for transportation;

Added(h) electric charging technologies for transportation;

Added(i) hydrogen (H2), sustainable alternative fuels as defined in Regulation (EU) .../...(OJ to include reference to ... [ReFuel Aviation 2021/0205(COD)], biomethane (CH4) production and refuelling infrastructure technologies;

Added(j) heat pump technologies;

Added(k) energy efficiency technologies;

Added(l) thermal energy distribution and electric grid technologies;