European Union governments formally cleared on Monday a new law designed to ensure the bloc produces 40% of its solar panels, wind turbines, heat pumps and other clean tech equipment and to help European industry compete with U.S. and Chinese rivals.
The Net Zero Industry Act (NZIA) will enter force next month or early July once it has been signed by the presidents of the European Parliament and the Council and is published in the EU’s official journal.
The act is a centrepiece of the EU’s push to ensure it is not only a global leader in cutting greenhouse gas emissions, but also in manufacturing the technology required.
Europe is increasingly relying on China, which is forecast to have 80% of global manufacturing capacity in solar power. The EU also has concerns that the $369 billion of green subsidies in the U.S. Inflation Reduction Act will entice European producers to relocate.