Changes from report parliamentary committee draft to plenary report

Added1. Member States shall recognise as net-zero strategic projects net-zero technology manufacturing projects, which take into account the Union’s climate and energy targets, located in the Union that contributes to the realisation of the objectives set out in Article 1 of this Regulation and meet at least one of the following criteria:

Added(a) the ▌project contributes to the technological and industrial resilience of the Union ▌by:

Added(i) adding manufacturing capacity in the Union for a net-zero technology or for specific components and specific machinery primarily used for the production of those technologies, for which the Union depends for more than 50% on imports coming from a single third country; or

Added(ii) adding manufacturing capacity or updating existing manufacturing capacity in the Union for a net-zero technology or for specific components and specific machinery primarily used for the production of those technologies, of which the Union exports more than 25% of its production output;

Added(b) the ▌project contributes to the competitiveness in the Union and on the global markets and to the creation of quality jobs by providing innovation with regard to the manufacturing process of net-zero technologies, or of components or materials along the supply chain of those technologies that are not yet substantively present or committed to be built within the Union or by ensuring the production of the best available net-zero technology, including best available components or materials in their supply chain, as well as by:

Added(i) contributing to the competitiveness of SMEs;

Added(ii) putting into place measures to attract, retain, upskill or reskill a workforce required for net-zero technologies, including through apprenticeships, traineeships, continuing or post graduate academic education in close cooperation with regional and local authorities and social partners including trade unions; or

Added(c) the project contributes to reaching the Union’s climate and energy objectives by complying with the do no significant harm principle as well as by:

Added(i) manufacturing a net-zero technology or specific components and specific machinery primarily used for the production of those technologies with improved environmental sustainability and performance or circularity features, including comprehensive low-carbon, energy, water and material efficiency;

Added(ii) adopting manufacturing practices related to a net-zero technology or specific components and specific machinery primarily used for the production of those technologies with improved environmental sustainability and performance or circularity features, including comprehensive low-carbon, energy, water and material efficiency and circular practices, as well as waste heat recovery; or

Added(iii) adding significant manufacturing capacity which will make a substantive contribution to the 2030 climate objectives of the Union.

Added1a. By ... [3 months from the date of entry into force of this Regulation], the Commission shall adopt an implementing act in accordance with the examination procedure referred to in Article 34(3) setting out guidelines ensuring uniform conditions for the implementation of the criteria listed in this Article. Those guidelines should at least include specific guidance on the criteria to be used to assess:

Added(a) whether a component or machinery is primarily used for the production of a net-zero technology;

Added(b) whether added manufacturing capacity concerns first-of-a-kind or best available technology manufacturing capacity;

Added(c) whether the additional manufacturing capacity can be considered to be significant.

Added2. Member States shall recognise the following as net-zero strategic projects CO2 strategic projects:

Added(a) the CO2 capture projects and the CO2 infrastructure projects necessary for the transport of captured CO2 to CO2 storage sites that:

Added(i) meet the conditions laid down in Article 18(6), point (a); and

Added(ii) aim to capture CO2 with the aim of storing it in a CO2 storage site as referred to in Article 16(1);

Added(b) the CO2 storage projects that:

Added(i) relate to CO2 storage sites located in the territory of the Union, its exclusive economic zones or on its continental shelf within the meaning of the United Nations Convention on the Law of the Sea;

Added(ii) contribute to reaching the objective set out in Article 18; and

Added(iii) have applied for a permit for the safe and permanent geological storage of CO2 in accordance with Directive 2009/31/EC.

Added3. Net-zero technology manufacturing projects corresponding to a technology listed in Article 3a(1) of this Regulation located in ‘less developed and transition regions’ and Just Transition Fund Territories and eligible for funding under cohesion policy rules, shall be recognised by Member States as net-zero strategic projects under Article 11(3) upon request of the project promoter without the project promoter having to submit a formal application under Article 11(2).

Added4. A net-zero technology manufacturing project located in the Union that contributes to the realisation of the objectives set out in Article 1(1) and that either benefits from the ETS Innovation Fund, or is part of Important Projects of Common European Interest, European Hydrogen Valleys, or of the Hydrogen Bank, when the funds support investment in manufacturing capacities corresponding to a technology listed in Article 3a(1) of this Regulation, shall be recognised by Member States as net-zero strategic project under Article 11(3) upon request of the project promoter without the project promoter having to submit a formal application under Article 11(2).

Added1. 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.

Added2. The application referred to in paragraph 1 shall contain all of the following:

Added(a) relevant evidence related to the fulfilment of the criteria laid down in Article 10(1) or (2);

Added(b) a business plan evaluating the financial viability of the project consistent with the objective of creating quality jobs.

Added3. Member States shall assess the application referred to in paragraph 1 through a fair and transparent process within a month. The decision resulting from this process shall be reasoned and shall be communicated to the project promoter, the Platform as well as to the European Parliament. The absence of a decision by Member States within that time frame shall constitute an approval of the project.

Added3a. By ... [6 months from the date of entry into force of this Regulation], each Member State shall publish a list establishing which of the net-zero technologies listed in Article 3a(1) can benefit from the provisions related to strategic projects recognised under this Article in the relevant Member State.

Added4. The Commission may provide its opinion on the approved projects. In the case of a rejection of the application by a Member State, the applicant shall have the right to submit the application to the Commission, which shall assess the application within 20 working days.

Added5. Where the Commission, following its assessment in accordance with paragraph 4, confirms the rejection of the application by the Member State, it shall notify the applicant of its conclusion in the form of a letter. Where the Commission differs in its assessment from the Member State, ▌Platform shall discuss the project in question and decide on its status.

Added6. Where the Commission or a Member State finds that a net-zero strategic project has undergone substantial changes or that it no longer fulfils the criteria set out in Article 10 ▌ , or where its recognition was based on an application containing incorrect information, it shall inform the project promoter concerned. After hearing the project promoter, the Member State may repeal the decision granting a project the status of net-zero strategic project.

Added7. Projects which are no longer recognised as net-zero strategic project shall lose all rights connected to that status under this Regulation.

Added8. The Commission shall set up and maintain an openly available registry of net-zero strategic projects.

AddedPriority status of net-zero strategic projects

Added1. 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 strategic projects those processes are treated in the most rapid way possible in accordance with Union and national law.

Added2. Without prejudice to obligations provided for in Union law, Member States shall grant net-zero strategic 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.

Added3. Net-zero strategic projects shall be considered to contribute to the security of supply of strategic 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 strategic 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.

Added4. All dispute resolution procedures, litigation, appeals and judicial remedies related to net-zero strategic projects in front of any national courts, tribunals, panels, including mediation or arbitration, where they exist in national law, shall be treated as urgent, if and to the extent to which national law provides for such urgency procedures and provided that the normally applicable rights of defence of individuals or of local communities would be respected Project promoters of net-zero strategic projects shall participate in such urgency procedure, where applicable.

Added1. The permit-granting process for net-zero strategic projects shall not exceed any of the following time limits:

Added(a) six months for the construction of net-zero strategic projects with a yearly manufacturing capacity of less than 1 GW;

Added(b) nine months for the construction of net-zero strategic projects, with a yearly manufacturing capacity of more than 1 GW;

Added(c) 18 months for all necessary permits to operate a storage site in accordance with Directive 2009/31/EC.

Added2. For net-zero strategic technologies for which a yearly manufacturing capacity is not measured in GW, the permit-granting process shall not exceed a time limit of nine months.

Added3. For the expansion of manufacturing capacity in existing manufacturing facilities, the time limits referred to in paragraphs 1 and 2 shall be halved.

Added4. 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 specific project is subject to an environmental impact assessment pursuant to Council Directive 92/43/EEC or Directive 2000/60/EC, Directive 2008/98/EC, Directive 2009/147/EC, Directive 2010/75/EU, 2011/92/EU or Directive 2012/18/EU or a determination of whether such environmental impact assessment is necessary and the relevant assessments concerned have not yet been carried out, or where the principle of administrative tacit approval does not exist in the national legal system. This provision shall not apply to final decisions on the outcome of the process, which are to be explicit. All decisions shall be made publicly available.

Added4a. Where the principle of administrative tacit approval does not exist in the national legal order and, in the case of an environmental impact assessment pursuant to Directive 92/43/EEC, 2000/60/EC, 2008/98/EC, 2009/147/EC, 2010/75/EU, 2011/92/EU or 2012/18/EU or a determination of whether such environmental impact assessment is necessary, the lack of reply of the relevant administrative bodies within the applicable time limits referred to in this Article shall result in effective, proportionate and dissuasive penalties. The revenue of the penalty shall be allocated to the project affected by the delay and shall correspond to the missed economic value as a result of the delay.

AddedNet-aero industry valleys

Added1. In order to fulfil the objectives of this Regulation, each Member State may designate geographical areas as net-zero industry valleys (Valleys).

Added2. The objectives of the Valleys shall be to:

Added(a) create clusters of net-zero industrial activity which lead to efficiency gains for all industrial actors involved;

Added(b) increase the attractiveness of the Union as a location for manufacturing activities;

Added(c) further streamline, beyond the streamlining set out in other Chapters of this Regulation, the administrative procedures for setting up net-zero manufacturing capacities.

Added3. When identifying areas for setting up the Valleys, Member States shall take into account:

Added(a) the need to favour multiple uses of the areas identified to ensure the expansion, reindustrialisation or creation of European industrial clusters;

Added(b) the availability of relevant transportation and network infrastructure, storage and other flexibility tools or the potential to create such infrastructure and storage;

Added(c) the just transition and its objectives, particularly with regard to coal regions in transition;

Added(d) any planned or already existing project pipeline and plan;