Changes from report parliamentary committee draft to plenary report

Added(e) the potential to organise education and training provisions for the availability of skills in net-zero technology products;

Added(f) the potential for the creation of quality jobs and the employment of local employees at potential production sites;

Added(g) the need to select areas where the construction or expansion of a specific type or types of net-zero technology manufacturing project does not lead to significant environmental impacts.

Added4. For the purposes of reducing the environmental impact of the construction or expansion of a specific type or types of strategic net-zero technology manufacturing project in Valleys to the minimum, Member States shall:

Added(a) give priority to artificial and built surfaces, industrial sites, brownfield sites, and, where appropriate, greenfield sites not usable for agriculture;

Added(b) in exceptional circumstances, establish Valleys in areas subject to restoration measures according to the National Restoration Plans prepared under the Regulation on Nature Restoration or designated Natura 2000 areas.

AddedDesignation of Valleys

Added1. A decision by a Member State to designate a Valley shall be accompanied by a plan (Plan) setting out:

Added(a) which specific net-zero manufacturing activities are covered by the Valley;

Added(b) concrete national measures to increase the attractiveness of the Valley as a location for manufacturing activities;

Added(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.

Added2. As part of the decision-making process for designating a Valley and before adopting a plan or plans designating Valleys, Member States shall carry out an environmental assessment in accordance with Directive 2001/42/EC, and where applicable, the assessments referred to in Article 6(3) of Directive 92/43/EEC for the specific net-zero technologies manufacturing activities to which the Net-Zero Industry Valley are dedicated. Those assessments should cover all technologies and related manufacturing activities to which the Valley is to be dedicated.

AddedBased on the outcome of the assessments, Member States shall provide, for each type of project, clear parameters for the implementation of projects with proportionate rules and measures to address the adverse environmental impacts.

AddedAny environmental assessment requirements and mitigating measures for a permit for new or expanded manufacturing capacity that is in accordance with the Plan's requirements and applicable law shall be considered fulfilled by an environmental assessment carried out pursuant to this paragraph and benefit from fast track procedure and validation.

Added2a. Member States shall provide an opinion, as set out in Article 7(1) of this Regulation as well as a detailed schedule for the permitting procedure as set out in Article 6(7), for all activities foreseen in the Valley. The opinion shall also include a detailed description of any data, information or analysis gathered by the Member State when conducting the assessment referred to in paragraph 2 can be relied upon by the applicant as well as, where applicable, which additional information, data or analysis is still required from the applicant. In accordance with Article 5, all data, information and analysis gathered by the Member State shall be made accessible online for applicants.

Added3. A decision designating a Valley pursuant to Article 13a(1) and in accordance with 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 these decisions public.

Added4. Net-zero manufacturing projects in Valleys 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) of Directive 92/43/EEC, Article 4(7) of Directive 2000/60/EC and Article 9(1), point (a), of Directive 2009/147/EC, net-zero manufacturing projects in Valleys 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.

Added5. The national measures referred to in paragraph 1b of this Article shall at least include the following economic and administrative support schemes:

Added(a) ensure the fast administrative set-up of Valley;

Added(b) develop the necessary infrastructure in the Valley;

Added(c) support private investments in the Valley;

Added(d) ensure the adequate reskilling and upskilling of the local workforce.

Added6. Public investments aimed at setting up Valleys, at equipping Valleys with appropriate infrastructure, converting brownfield sites and developing the adequacy of the local skills pool may benefit from increased co-financing rates by up to 10% under the European Fund for Regional Development, the Just Transition Fund and the European Social Fund Plus, if the Valley is located in less developed and transition regions or in Just Transition.

Added▌Article 15 Coordination of financing

Added1. The Net-Zero Europe Platform as established in Article 28 shall assess financial needs and bottlenecks of net-zero strategic projects, collect potential best practices, in particular to develop EU cross-border supply chains, notably based on regular exchanges and recommendations of the Net-Zero Industry Expert Group and with the relevant industrial alliances.

Added2. The Net-Zero Europe Platform shall, at the request of the net-zero strategic project promoter, discuss and advise on how the financing of its project can be completed, provide and coordinate support for its project to be completed, in particular to meet the criteria defined in Article 19(2) taking into account the funding already secured and considering at least the following elements:

Added(a) additional private sources of financing;

Added(b) support through resources from the European Investment Bank Group or other international financial institutions including the European Bank for Reconstruction and Development;

Added(c) existing Member State instruments and programmes, including from national promotional banks and institutions;

Added(d) relevant Union funding and financing programmes.

Added2a. By ... [3 months from the date of entry into force of this Regulation] and every two years thereafter, the Net-Zero Europe Platform shall issue recommendations to the Commission to guarantee sufficient funding, including through the Union budget, to pursue the objectives of this Regulation.

AddedFinancing of net-zero technologies

Added1. Without prejudice to Directive 2003/87/EC , Member States shall report annually on the percentage of national revenues generated from the auctioning of the allowances, in accordance with the activities allowed under Article 10(3) of that Directive, that is used to support the objectives of this Regulation with a view of reaching at least 25%.

Added2. In accordance with Article 2 of [STEP Regulation] Net-Zero Strategic Projects selected pursuant to Article 10(1), points (a) or (b), of this Regulation are recognised as fulfilling the STEP objectives and shall therefore be eligible to receive the Sovereignty Seal under Article 4 of that Regulation as well as to receive funds in accordance with Article 9 of that Regulation.

AddedAn annual injection capacity of at least 50 million tonnes of CO2 shall be achieved by 2030, in storage sites, meaning geological storage sites permitted under Directive 2009/31/EC including depleted oil and gas fields and saline aquifers, 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 ▌ and which are not combined with Enhanced Hydrocarbon Recovery (EHR).

Added2. The storage sites referred to in paragraph 1 shall be designed to operate for a minimum of five years.

Added3. By 31 December 2026, the Commission shall propose, if appropriate, 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.

Added4. By ... [two years from the date of entry into force of this Regulation] and every two years thereafter, the Commission shall submit a report to the European Parliament and to the Council on the progress achieved towards the Union annual injection capacity target, including the state of the market related to the injection capacity. The report shall include an overview of the geographical spread of storage sites across the Union.

Added5. The report referred to in paragraph 4 shall include a CO2 storage and injection capacity adequacy assessment, using, in particular, the information collected pursuant to Article 17(2) and to Article 18 (6), which shall:

Added(a) provide a detailed analysis of the geographical and temporal adequacies between the existing and planned CO2 storage sites and the CO2 capture projects for CO2 emissions from industrial installations within the Union;

Added(b) identify the main infrastructure needed for the transportation and storage of CO2 emissions from industrial installations throughout the Union;

Added(c) identify specific potential for CO2 usage to contribute to the permanent storage of CO2, which could lead to reduced needs for CO2 storage, or to reducing the Union's dependence on fossil fuels.

Added6. Where the report referred to in paragraph 4 shows that the demand for CO2 injection capacity is significantly higher or lower than reflected in the capacity targets set out under paragraphs 1 and 3, the Commission shall adopt a delegated act in order to align the capacity targets with the demand.

Added7. Where the report referred to in paragraph 4 of this Article shows that the market is insufficiently developed to provide an adequate injection capacity, the Commission may adjust the contributions under Article 18 while ensuring that the entities affected will have sufficient time to adjust their business plans to the newly defined obligations.

Added8. The Union may integrate its neighbouring countries into its efforts under this Chapter by integrating the provisions of this Chapter in agreements with these countries or by establishing new agreements covering the provisions of this Chapter. When integrating these provisions in existing agreements or when establishing new agreements, the agreement shall ensure that all Union environmental, safety and security standards and requirements applicable for projects under this Chapter are respected in the third country. The agreement shall also set out an additional proportionate injection target for the third country as well as, in accordance with Article 18, a pro rata contribution for the relevant entities in the third country.

Added1. By 3 months from the entry into force of this Regulation, Member States shall:

Added(a) make publicly available data on areas where CO2 storage sites can be permitted on their territory.

Added(b) oblige entities holding 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 all raw geological data relating to production sites that have been decommissioned or whose decommissioning has been notified to the competent authority, and preliminary economic assessments of the respective costs of enabling CO2 injection on each site, including data on:(i) whether the site is suitable for sustainably, safely and permanently injecting and storing CO2;

Added(ii) whether transport infrastructure and modes suitable for safely transporting CO2 to reach the site is available or can be constructed..

Added(c) For the purposes of point (a), the data shall include at least the information requested in the Commission Notice on the Guidance to Member States for the update of the 2021-2030 National Energy and Climate Plans and its subsequent updates.

Added2. By ... [six months from the date of entry into force of this Regulation] and each year thereafter, each Member State shall submit to the Commission a report, which shall be made publicly available, describing:

Added(a) a mapping of CO2 capture projects in progress on its territory or in cooperation with other Member States, and an estimation of the corresponding needs for injection and storage capacities, and CO2 transport;

Added(b) a mapping of CO2 storage and CO2 transport projects in progress on its territory, including the status of permitting under Directive 2009/31/EC, expected dates for Final Investment Decision (FID) and entry into operation;

Added(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).

Added(ca) the national strategy and targets that have been set for the capture of CO2 by 2030, and when applicable in accordance with Article 16(3) for 2035, 2040 and 2050;

Added(cb) the arrangements, including bilateral agreements made to facilitate cross-border transportation of CO2, made to ensure that entities capturing CO2 have access to a safe and non- discriminatory means of transporting CO2;

Added(cc) CO2 transportation projects in progress and an estimation of the necessary future CO2 transport projects’ capacity to match the corresponding capture and storage capacity.

Added2a. Should the report referred to in paragraph 2 show that no CO2 storage projects are in progress on their territory, Member States shall report on plans to facilitate the decarbonisation of industrial sectors faced with unavoidable CO2 emissions. This should include cross-border transport of CO2 to storage sites located in other Member States, as well as CO2 utilisation projects.

AddedCO2 transport infrastructure

Added1. In order to facilitate the achievement of the objective set out in Article 16, the Union and its Member States in partnership with the companies benefiting shall ensure the needed investments in CO2 transport infrastructure, including cross-border infrastructure, are being made.