As covered in our previous briefing The European Commission’s Net-Zero Industry Act and European Hydrogen Bank explained), the EU's Net Zero Industry Act (NZIA) seeks to ensure that the EU’s regulatory framework can facilitate the quick deployment and up-scaling of net-zero technologies and to boost sector competition in the EU.

The NZIA came into force in June 2024 and the European Commission has now published public calls for input on four pieces of draft secondary legislation aimed at implementing the NZIA's strategic objectives, namely:

1. Implementing Act on non-price criteria in renewable energy auctions

The NNZIA mandates that a portion of auctions for specific renewable energy technologies must incorporate pre-qualification criteria related to responsible business conduct, cybersecurity, data security, and the capability to deliver projects on time and in full. Additionally, these auctions must include pre-qualification or award criteria to evaluate the sustainability and resilience contributions of the projects.

This draft implementing act aims to standardise these criteria across the EU, ensuring uniform application and a competitive and secure environment for renewable energy advancements.

2. Delegated act on primarily used components under the NZIA

The NZIA aims to bolster the EU's domestic manufacturing capabilities for essential clean technologies by adopting a comprehensive supply chain approach of focussing not only on the final technology products but also on the individual components ‘primarily used’ in their production.

This delegated act sets out a list of components deemed ‘primarily used’ for the production of net-zero technologies in this regard.

3. Implementing Act on main specific components relevant for the NZIA access to markets chapter

Section 29(2) of the NZIA requires the adoption of a list of final products and main specific components of certain net-zero technologies, for the purpose of applying the NZIA's resilience criterion in the public procurement of net-zero technologies and renewable energy auctions. These resilience criterion are activated when 50% or more of the applicable listed components originate outside of the EU.

The annex to this draft implementing act sets out the proposed net-zero technology final products and their main specific component for the purpose of applying this resilience criterion.

4. Implementing Act on strategic project selection criteria

Under the NZIA, projects can apply for ‘net strategic project’ status', giving them  ‘priority status’ and enabling them to benefit from the fastest possible permitting processes and potentially being considered of overriding public interest.

This implementing act will set out the guidelines needed to ensure the application of uniform conditions for the strategic project selection criteria.

The European Commission has designated a 4-week consultation period, ending on 20 February 2025 (21 February 2025 for the Implementing Act on non-price criteria), after which time the final drafts of the secondary legislation will be prepared and proceeded with according to the relevant procedure.