Can the Net Zero Industry Act boost Romania’s cleantech sectors?

The Net Zero Industry Act (NZIA) agreement between the Council and the European Parliament establishes a framework of measures for strengthening Europe’s net zero technologies and manufacturing ecosystem. The regulation aims to boost domestic production of clean technologies so that EU member states may develop a more even, competitive and green industrial sector fit for a carbon-free world. 

Still, Europe’s response to the US Inflation Reduction Act, agreed upon last month, both delivers and underdelivers, according to EPG’s experts.

While the new provision to speed-up permitting for production sites for clean technologies and the introduction of net zero acceleration valleys will for sure be beneficial to enabling cleantech manufacturing in the EU, many implementation details are left for the member-states to figure out on their own. 


Luciana Miu – EPG Head of Clean Economy, on NZIA’s meaning for Romania:

“The European Parliament and Council have reached an agreement on the NZIA, a key policy underpinning the EU’s transition to net zero. Its effect on Member States will no doubt be profound: if appropriately implemented, the Act will enable a new paradigm of green growth and industrial transformation in the global race to scale up net zero technologies. 

For Romania, opportunities abound to become a low-carbon hub for Central and Eastern Europe. The NZIA’s obligations on speeding up permitting can help remove longstanding administrative barriers for Romania’s development of clean energy projects, while non-price resilience criteria can trickle down to enable nearshoring and local economic development. Through its obligation to develop geological CO2 storage, the NZIA will also launch carbon capture and storage in Romania, crucial to decarbonising the cement industry and enabling future negative emissions. 

The NZIA is not without its flaws. Its relatively vague definitions of net zero technologies can lead to superficial application, without due consideration of actual life-cycle climate and economic impact. Romania must ensure that implementation of the NZIA follows a clear strategy for smart, sustainable growth and transformation in line with nationally adopted climate targets.”

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