Last month, Members of the European Parliament (MEPs) voted to support the European Commission’s proposal for a new EU Net Zero Industry Act in clear response to the US’ recently enacted Inflation Reduction Act.

The Parliament voted 376 to 139 (with 116 abstentions) in favour of supporting the development of 17 essential strategic technologies for the transition to a climate neutral economy by 2050, whereas the Commission’s original proposal only included 10.

The 17 technologies covered by the Parliament’s revised text include renewable energy (wind and solar), nuclear energy, energy storage; the capture, transport, injection, storage and use of carbon dioxide, methane and nitrous oxide; hydrogen, alternative fuels, bio-methane, EV recharging, heat pumps, energy efficiency, thermal energy distribution and electricity networks, thermonuclear fusion, electrification, and high-efficiency industrial processes for energy carbon-intensive industries, production of biomaterials and recycling.

Some MEPs questioned whether it was necessary to create such a broad list, likening it to a “shopping list or a Christmas wishlist.” However, defenders stated the list meets the distinct needs of Member States in an inclusive manner.

The Act will now go to Member States in the Council to finalise the law and commence Trilogue negotiations. However, time will be of the essence to get the final agreement over the line in time. If consensus is not achieved by the scheduled plenary in April 2024, it could risk failing to pass before European elections in June. Furthermore, negotiations will likely hit snags in contentious areas such as the inclusion of nuclear energy.

Photo by Jorgen Hendriksen on Unsplash.