Approval of Net Zero Industry Act signals the start of carbon capture deployment

European Legislation on <a href="">clean energy</a> and Carbon Capture

Legislation to Boost European clean energy and Reduce Carbon Emissions

Governments across Europe have approved new laws aimed at safeguarding the region’s industries from fierce competition from the US and China in the transition to clean energy. This legislation not only ensures that the EU stays ahead in the clean energy technology race but also mandates significant efforts to reduce carbon dioxide emissions.

The Net Zero Industry Act

The Net Zero Industry Act (NZIA), recently ratified at a summit of agriculture ministers in Brussels, marks a pivotal moment in the EU’s push towards clean energy. This legislation rechannels EU funds, streamlines permitting processes, and aligns with the Critical Raw Materials Act to secure vital resources like lithium and rare earths.

Manufacturing Targets and Global Market Share

According to the new law, ‘net-zero’ technologies must account for 40% of domestic demand by 2030. To achieve this, the EU aims to ramp up its manufacturing capabilities for crucial technologies such as batteries and solar panels, which are currently predominantly imported from the far east.

Additionally, the legislation mandates that key low-carbon technologies should collectively capture at least 15% of the global market share by 2040, setting ambitious targets for the industry.

Carbon Capture and Storage Obligations

A significant provision of the NZIA is the requirement for petroleum companies to spearhead the deployment of carbon capture and storage (CCS) infrastructure. This involves establishing facilities capable of permanently storing 50 million tonnes of CO2 annually, captured from industrial processes, typically in depleted oil and gas fields.

Environmental experts have applauded this move, emphasizing the importance of holding the industry accountable for its carbon emissions and storage responsibilities.

Industry Response and Commission Support

The legislation has garnered support from industry players and policymakers alike. Commission president Ursula von der Leyen hailed the new law as a catalyst for boosting domestic production and meeting the escalating demand for clean energy solutions.

The Commission anticipates that this regulatory framework will attract investments, enhance Europe’s industrial competitiveness, and pave the way for the creation of quality jobs while bolstering energy security.

Read More of this Story at – 2024-05-27 16:05:59

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