EU Sets New Targets to Boost Net-Zero Technology Production

On 17 May 2024, the European Parliament adopted ambitious plans to boost the production of net-zero technologies. A Delegated Directive 2024/1405 was issued, adding the raw materials for the production of biofuels and biogas and amending Annex IX to Directive (EU) 2018/2001.  

These initiatives aim to strengthen the EU’s leadership in green energy, reduce carbon emissions, and stimulate economic growth.  

Key Highlights 

The newly adopted regulations set clear objectives and provide the necessary support framework to achieve these goals as follows: 

1. Strategic Objectives:  

• Increase EU manufacturing capacity for net-zero technologies.  

• Ensure that at least 40% of the demand for net-zero technologies needs are met by domestic production by 2030. 

2. Innovation and Investment:  

• Promote research and development in renewable energy technologies.  

• Facilitate public and private investment through financial incentives and regulatory support. 

3. Sustainability and Competitiveness:  

• Emphasize sustainable practices in technology production.  

• Enhance the global competitiveness of EU -produced technologies. 

Policy Measures 

In order to achieve these strategic objectives, the following policy measures have been put in place to support innovation, investment, and sustainability in the production of net-zero technology. 

1. Regulatory Framework:  

• Simplify administrative procedures for technology deployment.  

• Strengthen intellectual property rights to protect innovations. 

2. Financial Support:  

• Allocate funding for technology start-ups and small enterprises.  

• Establish a dedicated fund to support large-scale projects. 

3. International Cooperation:   

• Foster partnerships with non-EU countries to expand market access.  

• Promote EU standards in global markets. 

Annex Details 

The Directive 2024/1405 amends Annex IX of Directive (EU) 2018/2001 by incorporating new feedstocks for biofuel and biogas production. Issued on 17 May, it emphasizes that sustainable biofuels and biogases are crucial for increasing the use of renewable energy in sectors likely to be dependent on liquid fuels in the long term. 

Member States must implement the new rules by 14 September 2025. They need to inform the Commission of the adopted measures and their compliance. 

Impact on the EU Economy 

Job Creation: Thousands of jobs will be created in the green energy sector. 

Economic Growth: Contribute significantly to the EU's Gross Domestic Product (GDP). 

Environmental Benefits: Drastically reduce greenhouse gas emissions and dependence on fossil fuels. 

The European Parliament’s new regulations mark a decisive step towards a sustainable and competitive green economy. By setting robust targets and supporting innovation, the EU aims to lead the global transition to net-zero technologies. 

For more details, visit the Delegated directive here.