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The Net-Zero Industry Act (NZIA) has been officially published in the Official Journal of the European Union and will come into force on June 29th across all 27 EU Member States. This marks a significant milestone, enabling Member States to implement NZIA provisions in public procurements, auctions, and other public interventions.
The European Solar Manufacturing Council (ESMC) has welcomed the NZIA as a crucial tool for fostering a competitive, sustainable, and resilient net-zero industry within the EU. The timing of this legal framework’s enforcement is critical, especially for PV manufacturers currently facing the challenge of selling modules below production costs. By incorporating resilience and sustainability criteria in public procurements and auctions, the competitiveness of EU-produced PV modules is expected to improve.
ESMC Policy Director Žygimantas Vaiciunas commented, “Today marks a new era for European PV manufacturing and other net-zero technologies. From now on, the competitiveness of the European PV manufacturing industry is in the hands of the Member States. We expect them to support sustainable and resilient European-made solar modules in public procurements, auctions, and other national schemes immediately to enhance EU PV manufacturing competitiveness, especially in the current crisis.”
The ESMC is strongly advocating for the prompt implementation of NZIA provisions in Member States’ public procurements and auctions. In early May, ESMC encouraged Member States, signatories of the European Solar Charter, to commit to the quantitative off-take of resilient and sustainable EU PV modules. This initiative has already garnered substantial support.
To ensure smooth and effective application, the European Commission will adopt an Implementing Act and establish the Net-Zero Europe Platform. This platform will bring together the European Commission, Member States, and industry representatives to coordinate actions.
The NZIA, adopted by the European Council on May 27th, 2024, following the European Parliament vote on April 25th, 2024, outlines non-pricing criteria such as resilience and sustainability, and allows for price differences of up to 20% in public procurements and up to 15% in auctions. It also includes pre-qualification criteria for environmental sustainability and resilience, including considerations for social impact, cybersecurity, and timely delivery. |
