EU Net Zero Act Will Make Life Difficult For Some Manufacturers

You have to decode this statement a little bit, but the message is still stark; the EU cannot remain a competitive manufacturing base if Net Zero is the primary target, rather than industry innovation, energy or infrastructure security. Not forgetting actually making a profit. Here’s the word;

VDMA Executive Director Thilo Brodtmann comments on the vote in the Plenary of the European Parliament on the “Net-Zero Industry Act”, which aims to make the EU a competitive location for climate protection technologies:

“With the Net-Zero Industry Act (NZIA), the EU wants to strengthen European industry and has recognized mechanical and plant engineering as an essential part of the net-zero value chain in the proposed legislation. In general, it is good for Europe to increase the manufacturing capacity in the EU by providing benefits for the climate protection technologies and their value chains.

Although a technology-neutral approach would have been useful, we welcome the EU Parliament’s idea to expand the list of technologies that benefit from this legislation. However, there is a risk that sector- and technology-specific approaches, as envisaged in the NZIA, will not be sufficient in the long term to strengthen Europe as an industrial location and could lead to discrimination against technologies.

The upcoming trilogue negotiations with the EU Parliament, the Council and the EU Commission must ensure a clear and realistic outcome of the legislative proposal. A reality and practical check is necessary, as companies cannot cope with more confusion and unnecessary administrative burden. Instead, the industry needs clear responsibilities, lean processes and pragmatism when it comes to national implementation.”