As the EU races towards climate neutrality by 2050, our energy landscape is transforming rapidly—with clean sources taking center stage. But the real game-changer? Maturing innovative technologies still in the R&I pipeline that promise a sustainable future.
A groundbreaking new study tackles the challenges head-on: from resource sustainability and supply chain resilience to minimizing environmental and social impacts. It calls for early, ongoing assessments to align emerging clean energy tech with EU goals, boosting sustainability, circularity, resilience, and technological autonomy.
Key highlights:
Comprehensive review of assessment methods.
Insights from stakeholder consultations.
Actionable approaches refined with Horizon Europe projects at various tech readiness levels.
A flexible framework tailored to maturity stages, plus tech-specific guidelines.
Sector spotlights: Carbon capture, utilisation & storage (CCUS); energy infrastructure; energy storage; renewable & low-carbon fuels; and renewable energy technologies.
Funded by Horizon Europe (2021-2022), this study powers the European Climate Law, Renewable Energy Directive, Clean Industrial Deal, Critical Raw Materials Act, upcoming Circular Economy Act, Net Zero Industry Act, and SET Plan.
The Net Zero Industry Act (NZIA) is a European Union regulation designed to strengthen the EU's manufacturing ecosystem for net-zero technologies, supporting the transition to climate neutrality by 2050 as part of the broader European Green Deal. It aims to scale up domestic production of clean technologies to enhance energy resilience, attract investments, and boost industrial competitiveness against global rivals like the US and China.
Key Objectives
Manufacturing Benchmark: The act sets a non-binding target for the EU's net-zero technology manufacturing capacity to meet at least 40% of the bloc's annual deployment needs by 2030, with an additional goal of capturing 15% of global market value by 2040.
Technology Focus: It prioritizes 19 strategic net-zero technologies, including solar, wind, batteries and storage, heat pumps, geothermal energy, nuclear, renewable fuels of non-biological origin (RFNBOs), carbon capture, utilization, and storage (CCUS), and grid infrastructure.
Resilience and Sustainability: The NZIA addresses barriers to scaling up production, such as permitting delays, supply chain vulnerabilities, and skills shortages, while promoting circular economy principles and technological autonomy.
Main Provisions
Permitting and Acceleration: Streamlines regulatory processes for "net-zero strategic projects," setting maximum timelines for permits (e.g., 9-18 months depending on project size) and designating single points of contact in member states to expedite approvals.
Public Procurement and Auctions: Introduces sustainability and resilience criteria for public tenders, requiring at least 30% weighting for factors like environmental impact and supply chain diversity. For auctions (e.g., renewable energy), it allows non-price criteria to make up to 30% of award decisions.
Skills and Innovation: Establishes Net-Zero Europe Academies to train 100,000 workers within three years for key sectors, and supports innovation through regulatory sandboxes and funding under programs like Horizon Europe.
CO2 Storage Target: Specifically for CCUS, it mandates an EU-wide annual CO2 injection capacity of 50 million tonnes by 2030, with contributions from oil and gas producers based on their market share.
Background and Status
Proposed by the European Commission in March 2023 as a response to the US Inflation Reduction Act, the NZIA was politically agreed upon in February 2024 and entered into force on June 29, 2024 (Regulation (EU) 2024/1735). As of early 2026, implementation is underway, with member states required to transpose elements like permitting frameworks by mid-2025. The act aligns with other EU policies, such as the Critical Raw Materials Act and the Renewable Energy Directive, to foster green jobs—potentially creating up to 3 million additional roles—and reduce dependency on imports.
CCUS Sector Spotlight:
Advancing Carbon Capture, Utilisation, and Storage in the EU's Clean Energy Transition
As the EU pushes toward climate neutrality by 2050, Carbon Capture, Utilisation, and Storage (CCUS) stands out as a critical technology for decarbonizing hard-to-abate sectors like industry, power generation, and hydrogen production. The recent "Study on circular approaches for a sustainable and affordable clean energy transition," funded by Horizon Europe, dedicates one of its five sector-specific guidelines to CCUS, emphasizing its role in achieving EU climate goals while addressing sustainability challenges.
Key Role in the EU Energy Mix
Decarbonization Potential: CCUS enables the capture of CO₂ emissions from fossil fuel-based processes, biogenic sources, or directly from the air (DACCS), followed by utilisation (e.g., in chemicals, fuels, or materials) or permanent geological storage. It's essential for reaching net-zero, with the EU targeting 50 million tonnes of annual CO₂ injection capacity by 2030 under the Net Zero Industry Act.
Alignment with EU Policies: The study links CCUS to frameworks like the European Climate Law, Renewable Energy Directive, Critical Raw Materials Act, and Net Zero Industry Act. It promotes CCUS as a bridge to a circular carbon economy, transitioning from fossil CO₂ to atmospheric or biogenic sources for non-permanent uses.
The Study's Methodological Framework for CCUS
The guidelines offer a flexible, stage-adapted approach to assess CCUS technologies across Technology Readiness Levels (TRLs) from lab (TRL 1-4) to market deployment (TRL 7-9). Assessments cover four pillars: environmental, economic, and social sustainability; circularity; EU resilience; and technological autonomy.
Early-Stage (Low TRL): Focus on conceptual design, identifying potential environmental risks (e.g., CO₂ leakage) and resource needs. Use qualitative tools like life-cycle thinking to flag circularity opportunities, such as CO₂ reuse in products.
Mid-Stage (Medium TRL): Incorporate quantitative metrics, including life-cycle assessments (LCA) for GHG emissions and resource efficiency. Evaluate supply chain vulnerabilities, like dependency on critical materials for capture solvents or membranes.
Advanced Stage (High TRL): Conduct full-scale pilots with stakeholder input, assessing social impacts (e.g., community acceptance) and economic viability. Validate resilience through scenario analysis, ensuring EU technological sovereignty by reducing import reliance.
Identified Challenges and Gaps
The study highlights several hurdles in scaling CCUS, urging early interventions to maximize positive impacts:
Resource and Circularity Issues: High demand for materials like amines or sorbents could strain supplies; the guidelines recommend circular strategies, such as recycling capture media and integrating CCUS with renewable energy for lower-energy processes.
Supply Chain Resilience: Global dependencies pose risks; assessments should prioritize EU-sourced innovations to enhance autonomy.
Environmental and Social Impacts: Potential for unintended consequences, like increased water use or land disturbance in storage sites. Social acceptance is key, with calls for transparent risk assessments and community engagement.
Rapid Scale-Up Risks: Accelerating deployment without thorough evaluation could lead to inefficiencies or backlash; the framework advocates continuous monitoring to adapt to technological evolution.
Recommendations and Actionable Approaches
Integrated Assessments: Use LCA and circularity indicators (e.g., material flow analysis) to ensure CCUS contributes to net GHG reductions, avoiding rebound effects.
Stakeholder Collaboration: Draw from consultations in the study, involving industry, researchers, and policymakers to refine guidelines via Horizon Europe projects.
Policy Support: Leverage EU funding for pilots, aiming for a comprehensive CCUS strategy inspired by the Hydrogen Strategy, including targets for removals and compliance markets.
Future Outlook: With EU-wide initiatives like the Innovation Fund supporting CCUS demos, the guidelines aim to bridge lab-to-market gaps, fostering green jobs and reducing import dependencies.
Critics note that while the NZIA provides a framework, it lacks substantial new funding, relying on existing mechanisms like the EU Innovation Fund, which may limit its impact compared to more subsidy-heavy approaches elsewhere. For the latest developments, official EU resources or updates from the Commission are recommended.
Let's accelerate the clean energy transition responsibly! What do you think—ready for a circular, resilient EU energy future?
Zeljko Serdar, Croatian Center of Renewable Energy Sources
#CleanEnergy #EUGreenDeal #Sustainability





