Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724 (Text with EEA relevance)
If the Commission, at the time of the call for competition for a public procurement procedure as referred to in paragraph 1 of this Article, or commencement of such a procedure, has determined in accordance with Article 29(2) that the proportion of a specific net-zero technology or its main specific components originating in a third country accounts for more than 50 % of the supply of that specific net-zero technology or its main specific components within the Union, or if the Commission has determined in accordance with Article 29(2) that the proportion of supply within the Union of a specific net-zero technology or its main specific components originating in a third country has increased by at least 10 percentage points on average for two consecutive years and reaches at least 40 % of the supply within the Union, contracting authorities and contracting entities shall include the following conditions for the public procurement procedures referred to in paragraph 1 of this Article:
- (a) an obligation for the duration of the contract not to supply more than 50 % of the value of the specific net-zero technology referred to in this paragraph from each individual third country as determined by the Commission;
- (b) an obligation for the duration of the contract that no more than 50 % of the value of the main specific components of the specific net-zero technology referred to in this paragraph is supplied or provided directly by the successful tenderer or by a subcontractor from each individual third country as determined by the Commission;
- (c) an obligation to provide contracting authorities and contracting entities, upon their request, adequate evidence relating to point (a) or (b), at the latest upon completion of the execution of the contract;
- (d) an obligation to pay a proportionate charge, in the event of non-observance of the conditions referred in point (a) or (b), of at least 10 % of the value of the specific net-zero technologies of the contract referred to in this paragraph.
For contracts covered by the Union’s Appendix I to the GPA as well as by other relevant international agreements by which the Union is bound, contracting authorities and contracting entities shall not apply the requirements of points (a) to (d) of the second subparagraph of paragraph 7, where the specific net-zero technology or its main specific components originates from sources of supply that are signatories to those agreements.
Contracting authorities and contracting entities may, on an exceptional basis, decide not to apply paragraphs 1 to 4, where:
- (a) the required net-zero technology can only be supplied by a specific economic operator and no reasonable alternative or substitute exists and the absence of competition is not the result of an artificial narrowing down of the parameters of the public procurement procedure;
- (b) no suitable tenders or no suitable requests to participate have been submitted in response to a similar former public procurement procedure launched by the same contracting authority or contracting entity in the two years immediately before the commencement of the planned new procurement procedure;
- (c) their application would oblige that contracting authority or contracting entity to acquire equipment having disproportionate costs or would result in technical incompatibility in operation and maintenance.
Estimated cost differences above 20 %, based on objective and transparent data, may be presumed by contracting authorities and contracting entities to be disproportionate.
Where the application of the resilience contribution pursuant to paragraph 7 of this Article has led to a situation where no suitable tenders or no suitable requests to participate have been submitted in response to a public procurement procedure, the contracting authorities or contracting entities may, on an exceptional basis:
- (a) decide to use the negotiated procedure without prior publication pursuant to Article 32(2), point (a), of Directive 2014/24/EU, Article 50, point (a), of Directive 2014/25/EU or Article 31(5) of Directive 2014/23/EU; or
- (b) decide not to apply paragraph 7 of this Article in a specific subsequent public procurement procedure that aims to address the same needs as those which led to the commencement of the initial procedure referred to in this paragraph.
This Article shall be without prejudice to:
- (a) the possibility of using additional non price criteria;
- (b) the possibility of excluding abnormally low tenders under Article 69 of Directive 2014/24/EU and Article 84 of Directive 2014/25/EU;
- (c) Articles 107 and 108 TFEU, in the case of uncompetitive public procurement procedures.
Article 26
Auctions to deploy renewable energy sources
For the technologies listed in Article 4(1), points (a) to (j) that are renewable energy technologies, Member States shall, when designing auctions for the deployment of energy from renewable sources, include:
- (a) pre-qualification criteria related to:
- (i) responsible business conduct;
- (ii) cyber security and data security; and
- (iii) ability to deliver the project fully and on time;
- (b) pre-qualification criteria or award criteria to assess the auction’s sustainability and resilience contribution as referred to in paragraph 2.
This paragraph is without prejudice to Article 4 of Directive (EU) 2018/2001 and Articles 107 and 108 TFEU, and to the Union’s international obligations.
The auctions’ sustainability and resilience contribution shall be based on the criteria laid down in this paragraph. Those criteria shall be objective, transparent and non-discriminatory.
Auctions shall contribute to resilience, taking into account the proportion of the net-zero technology or its main specific components that originates from a third country accounting for more than 50 % of the supply of that specific net-zero technology or its main specific components within the Union.
For the purposes of the second subparagraph of this paragraph, the country of origin shall be determined in accordance with Regulation (EU) No 952/2013 of the European Parliament and of the Council ([^E0007]).
Auctions shall also contribute to at least one of the following:
- (a) environmental sustainability going beyond the minimum requirements in applicable law;
- (b) innovation by providing entirely new solutions or improving comparable state-of-the-art solutions;
- (c) the energy system integration.
This paragraph shall not preclude Member States from using additional non-price criteria beyond those listed in this paragraph.
By 30 March 2025, the Commission shall adopt an implementing act further specifying the pre-qualification and award criteria referred to in paragraph 1.
That implementing act shall be adopted in accordance with the examination procedure referred to in Article 45(2).
Member States shall give to each of the criteria to assess the auction’s sustainability and resilience contribution, when applied as award criteria, a minimum weight of 5 % and a combined weight of between 15 % and 30 % of the award criteria. This is without prejudice to the possibility to give a higher weighting to the criteria referred to in the fourth subparagraph of paragraph 2, in accordance with any limit for non-price criteria set under State aid rules.
Member States shall not be obliged to apply the considerations relating to the pre-qualification and award criteria laid down in paragraph 1 where, by applying those criteria, they would incur disproportionate costs. Estimated cost differences above 15 % per auction, based on objective and verifiable data, may be presumed by Member States to be disproportionate.
Member States shall, where appropriate, take measures to maximise the execution rate of projects through appropriate incentives, for example, by applying price indexation. Member States may assess the effects of negative bidding on the speed and scale of deployment.
Paragraphs 1 to 5 shall apply to at least 30 % of the volume auctioned per year per Member State or alternatively to at least 6 Gigawatt per year per Member State.
By 31 December 2027 and every two years thereafter, the Commission shall carry out a comprehensive assessment of the application of the resilience and sustainability criteria for auctions for the deployment of energy from renewable sources and their effect on the accelerated deployment of renewable energy technologies. In particular, the Commission shall assess the impact of the resilience and sustainability criteria on:
- (a) the development of the Union’s annual manufacturing of renewable energy technologies;
- (b) the deployment of energy from renewable sources, including their financial impact and their impact on the speed of deployment, while also taking into account the workability, including the administrative burden, and clarity of the system for project developers and national administration, on the basis of available data.
As part of that assessment, the Commission shall consult experts from Member States in the field of auctioning.
If the assessment referred to in paragraph 8 is positive, in particular if application of the resilience and sustainability criteria has not significantly hindered the deployment of energy from renewable sources, the Commission shall, where appropriate, submit a proposal to amend paragraph 7 to determine the shares of the volume auctioned per year per Member State or the absolute volume to which paragraphs 1 to 5 apply, in particular with a view to increasing those volumes, and to adapt the threshold of the estimated cost differences referred to in paragraph 5.
For the purpose of calculating the volumes auctioned per year per Member State, auctions for installations with a maximum project size of 10 MW may be excluded. For auctions for a specific technology to which paragraphs 1 to 5 apply and that have subsequently been undersubscribed, the undersubscribed share of the auction volume may be excluded from the application of paragraphs 1 to 5.
To facilitate implementation for all Member States, in particular for those with a low volume of auctions, Member States that have not launched more than 2 auctions per year during the previous 2 years, may compute the share of auctions to which paragraphs 1 to 5 apply over that 2-year period.
Article 27
Pre-commercial procurement and public procurement of innovative solutions
Member States shall seek to use, where appropriate, pre-commercial procurement and public procurement of innovative solutions in order to stimulate innovation in net-zero technology and the creation of new manufacturing capacity for net-zero technologies in the Union. Pre-commercial procurement and public procurement of innovative solutions may be topped up with Union-level funding within the framework of existing Union programmes for joint pre-commercial procurement or public procurement across Member States.
The Platform shall prepare recommendations on the design of pre-commercial procurement or public procurement of innovative solutions.
Article 28
Other forms of public intervention
Without prejudice to Articles 107 and 108 TFEU and Article 4 of Directive (EU) 2018/2001 and in line with the Union’s international commitments, when deciding to set up new schemes or to update existing schemes benefitting households, companies or consumers which incentivise the purchase of net-zero technology final products, Member States, regional or local authorities, bodies governed by public law or associations formed by one or more such authorities or one or more such bodies governed by public law shall design those schemes in such a way as to promote the purchase by beneficiaries of net-zero technology final products with a high sustainability and resilience contribution as referred in paragraph 4 of this Article, by providing additional proportionate financial compensation or by conditioning the eligibility of the scheme on the basis of the criteria laid down in paragraph 4 of this Article, while considering the accessibility of the schemes for citizens living in energy poverty.
The additional financial compensation granted by authorities in accordance with paragraph 1 of this Article, due to the application of the criteria laid down in paragraph 4, first subparagraph, introductory part and points (b) and (c), of this Article, shall not exceed 5 % of the cost of the net-zero technology final product for the consumer, with the exception of schemes targeting citizens living in energy poverty, as defined in Article 2, point (1), of Regulation (EU) 2023/955 of the European Parliament and of the Council ([^E0008]), for which the limit shall be 15 %.
When designing and implementing a scheme pursuant to paragraph 1, the authority shall assess the resilience and sustainability contribution of available net-zero technology final products on the market on the basis of on an open, non-discriminatory and transparent process. Any net-zero technology final product shall be entitled to apply to join the scheme at any time. The authority shall specify a pass mark for net-zero technology final products to be eligible to the additional financial compensation under the support scheme.
The sustainability and resilience contribution of other forms of public intervention shall be based on their contribution to resilience, taking into account the proportion of the net-zero technology or its main specific components originating from a third country that accounts for more than 50 % of the supply of that specific net-zero technology within the Union, and at least one of the following:
- (a) environmental sustainability going beyond the minimum requirements in applicable law;
- (b) contribution to innovation by providing entirely new solutions or improving comparable state-of-the-art solutions;
- (c) contribution to the energy system integration.
The criteria referred to in the first subparagraph shall be objective, transparent and non-discriminatory.
This shall not preclude Member States from using additional non-price criteria beyond those laid down in the first subparagraph.
For the purposes of the contribution to resilience referred to in the first subparagraph, introductory part, of this paragraph, the country of origin shall be determined in accordance with Regulation (EU) No 952/2013.
Member States shall publish on a single free access website all information relating to schemes pursuant to paragraph 1 for each relevant net-zero technology final product.
Article 29
Coordination of access to markets initiatives
Where relevant, the Commission shall provide guidance on the application of the criteria to assess the resilience and sustainability contribution of net-zero technology products covered by the forms of public intervention referred to in Articles 25, 26 and 28.
For the purposes of the assessment of the contribution to resilience, the Commission shall adopt an implementing act providing for a list of each of the net-zero technology final products and their main specific components. That implementing act shall be adopted in accordance with the examination procedure referred to Article 45(2).
On the basis of the implementing act referred to in the first subparagraph, the Commission shall provide updated information on the shares of the Union supply originating in different third countries in the most recent year for which data is available for each of the net-zero technologies and their main specific components. The country of origin shall be determined in accordance with Regulation (EU) No 952/2013.
The Platform shall discuss measures carried out by Member States to implement Articles 25 to 28 and exchange best practices, inter alia, with regard to the practical use of criteria defining the sustainability and resilience contribution in public procurement procedures, or schemes incentivising the purchase of net-zero technology final products.
CHAPTER V ENHANCING SKILLS FOR QUALITY JOB CREATION
Article 30
European net-zero industry academies
Based on an assessment, by the Commission, using existing data and reports, of skills shortages in net-zero technology industries key for the industrial transformation and decarbonisation, and fully respecting the competence of Member States in the field of education and training, the Commission shall support, including through the provision of seed-funding, the launch of European net-zero industry academies (the ‘Academies’), as organisations or consortia or projects of relevant stakeholders, which have the following objectives:
- (a) developing, for voluntary use by Member States and education and training providers on their territories, learning programmes, content and learning and training materials for training and education, such as on developing, producing, installing, commissioning, operating, maintaining, repairing, ecodesigning, re-using and recycling net-zero technologies, and on raw materials as well as relevant occupational health and safety aspects and transversal competences; this shall reflect the assessment of skills shortages and support the capacities of public authorities, in particular those competent to issue permits and authorisations referred to in Chapter II and contracting authorities and contracting entities referred to in Chapter IV of this Regulation;
- (b) promoting the voluntary use of the learning programmes, content and materials by education and training providers in the Member States;
- (c) offering support to the education and training providers that use the learning programmes, content and materials produced by the Academies to uphold the quality of the training offered and to develop mechanisms to ensure the quality of the training offered;
- (d) developing credentials, including, if appropriate, micro-credentials, for voluntary use by Member States and education and training providers on their territories, in order to facilitate the identification of skills and, where appropriate, the recognition of qualifications, to enhance the transferability between jobs and industries, to facilitate the cross-border mobility of the workforce, to promote matching with relevant quality jobs through tools such as the European network of employment services (EURES) and EURAXESS, and to ensure visibility of the fact that a learning programme or learning content was developed by an Academy.
The Academies shall involve relevant actors, such as net-zero technology industry, education and training providers and social partners from a range of Member States. The Academies shall develop action plans setting out, among others, milestones, targets including in terms of number of learners to be based on the assessment of skills shortages, as well as a financial plan aiming to achieve financial sustainability. Those action plans shall pay particular attention to regions in industrial transformation or with a high rate of unemployment, where relevant.
The Academies shall produce gender-balanced content, contribute to counter gender stereotypes and promote equal access to learning contents for all, paying particular attention to the need to activate more women and young people, in particular NEETs, older people, workers in professions which are at risk of disappearing or the content and tasks of which are being highly transformed by new technologies, people working in regions in transition and persons with disabilities. The Academies shall promote diversity and the inclusivity of people with disability, migrants and people in vulnerable situations.
Without prejudice to the respective powers of the budgetary authority, financial means shall be made available where appropriate at Union level to support the launch of the Academies with seed-funding as referred to in paragraph 1. In addition, Member States are encouraged to make use of relevant Union funds such as ESF+, to support the deployment of the learning content developed by the Academies.
Article 31
Regulated professions in the net-zero technology industries and recognition of professional qualifications
Within nine months after the completion of the learning content and materials developed by an Academy and every two years thereafter, Member States shall strive to identify whether the learning programmes developed by that Academy are equivalent to the specific qualifications required by the host Member State to access regulated activities within the scope of a profession with particular interest for the net-zero technology industry in that Member State. Member States shall ensure that the results of the assessments are made public and easily accessible online. In the event that the learning programmes are deemed not to be equivalent to the qualifications required by the host Member State to access regulated activities, or where a Member State has not sought to identify equivalence, that Member State shall inform the Platform, providing relevant information on:
- (a) the reasoning for not completing the identification exercise; or
- (b) the differences between the learning programmes developed by the Academies and the specific qualifications required by that host Member State, and how to achieve equivalence.
If a Member State concludes that the learning programmes developed by an Academy are equivalent to the specific qualifications required by the host Member State to access regulated activities, it shall facilitate the recognition of credentials issued by education and training providers on the basis of the learning programmes developed by the Academy, under Title III, Chapter I of Directive 2005/36/EC, where a holder of such a credential requests access to a regulated profession within the meaning of Article 3(1), point (a), of Directive 2005/36/EC, and of particular importance for the net-zero technology industry, by treating the credential as sufficient evidence of formal qualifications, in accordance with Article 11 of Directive 2005/36/EC.
Where access to a profession of particular importance for the net-zero technology industry is regulated within the meaning of Article 3(1), point (a), of Directive 2005/36/EC, Member States shall work towards developing a common set of minimum knowledge, skills and competences necessary for the pursuit of that specific profession for the purpose of establishing a common training framework as referred to in Article 49a(1) of Directive 2005/36/EC to enable automatic recognition of qualifications. The Platform may also submit suggestions for common training frameworks, as referred to in Article 49a(3) of Directive 2005/36/EC.
Article 32
Net-Zero Europe Platform and skills
The Platform shall support and supplement the action of Member States in the deployment of skills in net-zero technologies, while respecting their competence, by advising and assisting the Commission and Member States, including competent authorities, and contracting authorities and contracting entities, as referred to in Chapters II and IV, by means of the following:
- (a) assessing, continuously monitoring and forecasting the demand and supply of a workforce with the skill sets needed in net-zero technologies and the availability and uptake of corresponding education and training opportunities, for the purpose of informing the activities of the Academies, as appropriate;
- (b) monitoring the activity of the Academies, on the basis of the data and information on how many people have benefited from the learning programmes developed by the Academies, including disaggregated data by industrial sector, gender, age and level of education and qualification, fostering synergies with Union and national skills initiatives and projects, and strengthening and scaling up good practices, inter alia, to attract a diverse workforce and provide general oversight;
- (c) analysing the root causes of labour and skills shortages, on the basis of existing insights and data, including those related to the quality of the job offer, thus assessing whether additional measures are needed to attract more workers of all qualification levels in certain industries;
- (d) assisting the mobilisation of stakeholders including industry, undertakings including SMEs, social partners and education and training providers, such as universities, for the promotion, and, in line with national practices, their possible participation in the roll-out of learning programmes developed by the Academies;
- (e) assisting the uptake of learning credentials developed by the Academies in the Member States to promote the identification of skills and, where relevant, recognition of qualifications and the matching of skills and jobs, inter alia, by promoting the validity and acceptance of the credentials throughout the labour market of the Union;
- (f) monitoring the uptake and recognition of learning credentials and contributing to providing solutions where issues of non-recognition are detected;
- (g) facilitating, where appropriate, the development of European occupation profiles, for the voluntary use by Member States, consisting of a common set of knowledge, skills and competences for key professions in the net-zero technologies, drawing inter alia upon the learning programmes developed by the Academies, and, where appropriate, using the terminology provided by the European Skills, Competences, Qualifications and Occupations (ESCO) classification to facilitate transparency and mobility between jobs and across internal market borders;
- (h) promoting career prospects and quality working conditions, including adequate wages, in jobs in net-zero technology industries, integration in the labour market for net-zero technology industries of more women and young people, in particular NEETs, older people, workers in professions which are at risk of disappearing or the content and tasks of which are being highly transformed by new technologies, people working in regions in transition and persons with disabilities, and attracting skilled workers from third countries through instruments such as the European Blue Card and in accordance with national competences, law and practice, and thereby achieving a more diverse workforce;
- (i) encouraging and supporting labour mobility across the Union and promoting the publication of vacant positions related to net-zero technologies by EURES, in accordance with Regulation (EU) 2016/589 of the European Parliament and of the Council ([^E0009]);
- (j) facilitating closer coordination and the exchange of best practices and knowhow between Member States and within the private sector to enhance the availability of skills in the net-zero technologies, including by contributing to Union and Member States policies to attract new talents from third countries and all educational levels, in accordance with national competences, law and practice and in coordination with the already existing structures of European cooperation in education and training;
- (k) looking for synergies with existing training or education programmes, with the aim, among others, of matching the learning programmes of the Academies with the needs of the Union’s industry.
CHAPTER VI INNOVATION
Article 33
Net-zero regulatory sandboxes
By 30 March 2025, Member States shall, when setting up net-zero regulatory sandboxes, establish or designate one or more contact points. A sole contact point shall be responsible for each request to establish a net-zero regulatory sandbox pursuant to this Article.
Member States, together with local and regional authorities and other Member States where appropriate, may at their own initiative establish net-zero regulatory sandboxes. Member States shall establish net-zero regulatory sandboxes, in close collaboration with industry and, where relevant, research institutes, the social partners and civil society, in accordance with paragraph 1 at the request of any company, organisation or consortium developing innovative net-zero technologies that fulfils the eligibility and selection criteria laid down in the paragraph 3, second subparagraph, point (a), and that has been selected by the competent authorities following the selection procedure referred to in the paragraph 3, second subparagraph, point (b).
The arrangements and the conditions for the establishment and operation of the net-zero regulatory sandboxes pursuant to paragraph 2 shall be adopted by means of implementing acts. Those arrangements and conditions shall support flexibility of the competent authorities with regard to prioritising between and approving applications for net-zero regulatory sandboxes. They shall foster innovation and regulatory learning and shall particularly take into account the special circumstances and capacities of participating SMEs and start-ups.
Those implementing acts shall include common main principles on the following issues:
- (a) the eligibility criteria and selection procedure for participation in the net-zero regulatory sandboxes;
- (b) the procedure for the application, participation, monitoring, exiting from and termination of the net-zero regulatory sandboxes;
- (c) the terms and conditions applicable to the participants.
Those implementing acts shall be adopted in accordance with examination procedure referred to in Article 45(2).
Participation in net-zero regulatory sandboxes shall not affect the supervisory and corrective powers of the authorities supervising the net-zero regulatory sandbox. The testing, development and validation of innovative net-zero technologies or other innovative technologies shall take place under the supervision and with the support of the competent authorities. The competent authorities shall exercise their supervisory powers in a flexible manner within the limits of the relevant law, adapting existing regulatory practices and using their discretionary powers when implementing and enforcing legal provisions to a specific net-zero regulatory sandbox project, with the objective of removing barriers, alleviating regulatory burden, reducing regulatory uncertainty, and supporting innovation in net-zero technologies or other innovative technologies.
For the purpose of achieving the objective of this Article, the competent authorities shall consider whether to grant derogations or exemptions in national law to the extent allowed by relevant Union law. The competent authorities shall ensure that the net-zero regulatory sandbox plan respects the requirements of Union law and the key objectives and essential requirements of national law. Competent authorities shall ensure that any significant risk to health, safety or the environment identified during the development and testing of innovative net-zero technologies or other innovative technologies is publicly communicated and results in the immediate suspension of the development and testing process until such risk is mitigated. Where competent authorities consider that the proposed project raises exceptional risks for the health and safety of workers, of the general population, or of the environment, in particular because it relates to testing, development or validation involving particularly toxic substances, they shall only approve the net-zero regulatory sandbox plan provided that they are satisfied that adequate safeguards commensurate with the exceptional risk identified have been put in place.
Participants in the net-zero regulatory sandbox shall remain liable under applicable Union and Member States’ liability law for any material harm inflicted on third parties as a result of the testing taking place in the net-zero regulatory sandbox.
The duration of the net-zero regulatory sandbox may be extended through the same procedure upon agreement of the national competent authority.
The net-zero regulatory sandboxes shall be designed and implemented in such a way that, where relevant, they facilitate cross-border cooperation between the national competent authorities. Member States that have established net-zero regulatory sandboxes shall coordinate their activities and cooperate within the framework of the Platform with the objective of sharing relevant information with other Member States. The Platform may invite companies that have participated in a net-zero regulatory sandbox to share their experience of the process. The Commission shall, on the basis of information provided by the Members States and the discussions held in the Platform, report regularly on the results of the implementation of net-zero regulatory sandboxes, including good practices, lessons learnt and recommendations on their setup and, where relevant, on the application, within the net-zero regulatory sandbox, of this Regulation and other Union law in a manner adapted for the purposes of the net-zero regulatory sandbox.
Article 34
Measures for SMEs and start-ups
Member States shall:
- (a) provide SMEs and start-ups with priority access to the net-zero regulatory sandboxes to the extent that they fulfil the eligibility conditions laid down in Article 33;
- (b) organise awareness raising activities about participation to the net-zero regulatory sandboxes by SMEs and start-ups;
- (c) where appropriate, establish a dedicated channel for communication with SMEs and start-ups to provide guidance and respond to queries about the implementation of Article 33.
Member States shall take into account the specific interests and needs of SMEs and start-ups, and provide adequate administrative support to take part in the net-zero regulatory sandboxes. Without prejudice to the application of Articles 107 and 108 TFEU, Member States shall inform SMEs and start-ups of available financial support for their activities in the net-zero regulatory sandboxes.
Article 35
Establishment of the Strategic Energy Technology Plan Steering Group
The Strategic Energy Technology Plan Steering Group (SET Plan Steering Group) is hereby established.
The SET Plan Steering Group shall perform the tasks set out in this Regulation.
Article 36
Tasks of the SET Plan Steering Group
The SET Plan Steering Group shall provide guidance and direction to the Strategic Energy Technology Plan.
The Commission and Member States shall work and coordinate within the SET Plan Steering Group to help support the development of clean, efficient and cost-competitive energy technologies through coordination and collaboration in clean energy research and innovation and, where relevant, with third countries upon invitation.
The SET Plan Steering Group shall advise and assist the Commission in setting up initiatives related to the tasks referred to in paragraphs 1 and 2.
Article 37
Structure and functioning of the SET Plan Steering Group
The SET Plan Steering Group shall be composed of Member States and the Commission. It shall be chaired by one or more representatives of the Commission.
Each Member State shall appoint a high-level representative to the SET Plan Steering Group. Where relevant as regards the function and expertise, a Member State may appoint more than one representative in relation to different tasks of the SET Plan Steering Group. Each representative appointed to the SET Plan Steering Group shall have an alternate.
On a proposal by the Commission, the SET Plan Steering Group shall adopt its rules of procedure by a simple majority of its members.
The SET Plan Steering Group shall meet at regular intervals to ensure the effective performance of its tasks. Where necessary, the SET Plan Steering Group shall meet on the basis of a reasoned request by the Commission or by a simple majority of its members.
The Commission shall assist the SET Plan Steering Group by means of an executive secretariat that provides technical and logistic support.
The SET Plan Steering Group may establish standing or temporary working groups and task forces dealing with specific questions and tasks.
CHAPTER VII GOVERNANCE
Article 38
Establishment and tasks of the net-zero Europe Platform
The net-zero Europe Platform (‘the Platform’) is hereby established.
The Platform shall perform the tasks set out in this Regulation.
The Platform may advise and assist the Commission and Member States with regard to their actions to reach the objectives set out in Chapter I of this Regulation, while avoiding disproportionate administrative burden for Member States where feasible, and taking into account Member States’ national energy and climate plans.
Members of the Platform shall coordinate the Net-Zero Industrial Partnerships within the Platform to help promote the adoption of net-zero technologies globally, to collaborate in the development of innovative net-zero technologies and to support the role of Union industrial capabilities in paving the way for the global clean energy transition, in accordance with the general objective of this Regulation as laid down in Article 1. The Platform may periodically discuss, inter alia:
- (a) how to improve and promote cooperation, knowhow and technology sharing along the net-zero value chain between the Union and third countries;
- (b) the resilience including through enhanced competitiveness of the European industries within the scope of this Regulation in relation to global value chains and recommended actions for enhancement;
- (c) where appropriate, improving consistency between this Regulation and other Union initiatives which could contribute to the objectives of this Regulation and whether to issue recommendations in relation thereto;
- (d) the progress on value chains for net-zero technologies, ongoing technological and industrial changes, and potential future emerging strategic value chains in view of the objectives of this Regulation;
- (e) best practices with regard to the implementation of Section II of Chapter II as well as to Articles 15 and 16 and accelerating the permitting deadlines;
- (f) how to address non-tariff barriers to trade, such as through mutual recognition of conformity assessment or commitments to avoid export restrictions;
- (g) which third countries could be prioritised for the conclusion of Net-Zero Industrial Partnerships, taking into account the following:
- (i) the potential contribution to security of supply, taking into account their manufacturing capacity of net-zero technologies;
- (ii) whether there are existing cooperation agreements between a third country and the Union;
- (iii) whether a third country's regulatory framework and its implementation ensures the monitoring, prevention and minimisation of environmental impacts, the use of socially responsible practices including respect of human and labour rights and meaningful and equitable engagement with local communities, the use of transparent business practices and the prevention of adverse impacts on the proper functioning of public administration and the rule of law;
- (iv) CO2 injection and storage capacities within their territories;
- (h) how to incentivise production of net-zero technologies in the Union, by addressing funding, regulatory framework and investment and location guarantees;
- (i) the assessment of the application of trade measures in net-zero industries.
This paragraph shall be without prejudice to the prerogatives of the Council in accordance with the Treaties in relation to non-binding international instruments.
Member States may support the Commission in the implementation of the cooperation measures set out in the Net-Zero Industrial Partnership.
Taking into account the Commission’s report of 24 October 2023 entitled ‘Progress on competitiveness of clean energy technologies’ and the Commission’s Annual Burden Survey 2022, the Commission shall report to the Platform on the development of the regulatory burden for net-zero industries in the Union.
The Platform shall regularly coordinate with the High-Level Forum on Standardisation to discuss the use of standardisation to support the development of net-zero technologies in the Union.
Article 39
Structure and functioning of the Platform
The Platform shall be composed of representatives of Member States and of the Commission. It shall be chaired by a representative of the Commission.
Each Member State shall appoint a high-level representative to the Platform. Where relevant as regards the function and expertise, a Member State may appoint more than one representative in relation to different tasks of the Platform. Each representative appointed to the Platform shall have an alternate. Only Member States shall have voting rights. Each Member State shall have only one vote regardless of the number of representatives.
On a proposal by the Commission, the Platform shall adopt its rules of procedure by a simple majority of its members.
The Platform shall meet at regular intervals in order to ensure the effective performance of its tasks provided for in this Regulation. Where necessary, the Platform shall hold extraordinary meetings on the basis of a reasoned request by the Commission or by a Member State.
The Commission shall assist the Platform by means of an executive secretariat that provides technical and logistic support.
The Platform may establish standing or temporary sub-groups dealing with specific questions and tasks relating to this Regulation.
The Platform shall establish at least a sub-group to ensure the appropriate implementation of the Academies pursuant to Chapter V.
The Platform shall invite representatives of the European Parliament to attend, as observers, its meetings, including the meetings of the standing or temporary sub-groups referred to in paragraph 6. The European Parliament shall receive all documentation and information related to the work of the Platform at the same time as the members of the Platform.
The Platform shall establish a net-zero Industry Group. That group shall, on its own initiative or upon a request of the Platform, provide recommendations to the Platform with a view to contributing to achieving the objectives of this Regulation.
Where appropriate, the Platform or the Commission may invite experts representing industry, civil society, academia, trade unions and other third parties to participate in the meetings of the Platform and in sub-group meetings or to provide written contributions. Those experts shall not participate in decision making.
The Platform shall take the necessary measures to ensure the safe handling and processing of confidential and commercially sensitive information.
The Platform shall use its best endeavours to take decisions by means of consensus.
The Platform shall coordinate and cooperate with existing and relevant industrial alliances and, where appropriate, invite them to attend its meetings, including the meetings of the standing or temporary sub-groups referred to in paragraph 6.
The Platform shall meet at least once every year with representatives from the SET Plan Steering Group referred to in Article 35 in order to discuss the most recent developments, synergies between the implementation of this Regulation and the Strategic Energy Technology Plan and to issue recommendations thereon.
Article 40
Net-zero Regulatory Burden Scientific Advisory Group
A Net-zero Regulatory Burden Scientific Advisory Group (the ‘Scientific Advisory Group’) is hereby established.
The Scientific Advisory Group shall be composed of at least 7 senior scientific experts covering a broad range of relevant disciplines. Members of the Scientific Advisory Group shall fulfil the criteria laid down in paragraph 4.
No more than two members of the Scientific Advisory Group shall hold the nationality of the same Member State. The independence of the members of the Scientific Advisory Group shall be beyond doubt.
The members of the Scientific Advisory Group shall be appointed for a term of four years, which shall be renewable once, following an open, fair and transparent selection procedure. The selection of members shall be based on the following criteria:
- (a) scientific excellence;
- (b) experience in carrying out scientific assessments and providing scientific advice in their fields of expertise;
- (c) expertise in the field of public administration or other fields relevant for the tasks of the Scientific Advisory Group;
- (d) professional experience in an inter-disciplinary environment in an international context.
The members of the Scientific Advisory Group shall be appointed in a personal capacity and shall provide their opinions independently of the Member States and of the Union institutions. The Scientific Advisory Group shall elect a chairperson from among its members for a period of four years. It shall adopt its rules of procedure.
The Scientific Advisory Group shall in the exercise of its activities function exclusively in an advisory capacity and act without prejudice to the Commission’s right of initiative, the Interinstitutional Agreement on Better Law-Making and the Commission’s scrutiny and quality-control functions in the Regulatory Scrutiny Board.
The Scientific Advisory Group shall support, in accordance with paragraph 6, the work of the Commission, of the European Parliament and of the Member States, while acting independently in discharging its tasks by providing advisory reports on the regulatory impact and burden of Union law on industrial activities within the scope of this Regulation. In order to provide consistent advice, the Scientific Advisory Group shall assess regulatory impacts and burdens on industrial activities within the scope of this Regulation, utilising a science informed methodology and, where appropriate, taking into account the Better Regulation Toolbox.
The Commission shall provide the secretariat of the Scientific Advisory Group.
The Scientific Advisory Group shall regularly exchange views on its work with the Platform.
Article 41
National energy and climate plans
Member States shall take into consideration this Regulation when preparing their national energy and climate plans, in particular as regards the dimension ‘research, innovation and competitiveness’ of the Energy Union, reflecting the priorities of the Energy Union Strategy and the Strategic Energy Technology Plan, and when submitting their biennial progress reports in accordance with Article 17 of Regulation (EU) 2018/1999.
CHAPTER VIII MONITORING
Article 42
Monitoring
The Commission shall monitor on an ongoing basis:
- (a) the Union’s progress with respect to the Union’s objectives referred to in Article 1, in particular the supply risks of net-zero technologies that would distort competition or fragment the internal market, and the related impact of this Regulation;
- (b) the Union’s progress in meeting the benchmarks referred to in Article 5, taking into account constraints and opportunities on the global market;
- (c) the value or volume of imports into its territory and exports outside of the Union’s territory of net-zero technologies;
- (d) the progress with respect to the Union level objective of CO2 injection capacity referred to in Article 20 and to the related CO2 transport infrastructure as well as the related CO2 capture activities.
Member States and the national authorities they designate for that purpose shall collect and provide data and other evidence required pursuant to paragraph 1.
In particular, they shall, at least every 3 years collect data on:
- (a) obstacles to trade in net-zero technologies or in goods that use net-zero technologies within the internal market and their potential drivers, including where such obstacles stem from global supply chain disruptions;
- (b) developments in net-zero technologies and market trends, as well as market prices for the respective net-zero technologies, including information on auctions, their frequency, awarding prices, and volume as relevant for fulfilling the requirements of Chapter IV;
- (c) net-zero technology manufacturing capacity and related activities, including data on employment and skills;
- (d) the number of SMEs that are part of net-zero technology manufacturing projects;
- (e) the following information related to permit-granting processes per net-zero technology:
- (i) the number of permit-granting processes initiated, the number of applications refused, and the number of comprehensive decisions taken, specifying whether they approved or refused the project;
- (ii) the duration of the permit-granting processes where a comprehensive decision was taken, including the duration of extensions of the time limits;
- (iii) information on the resources allocated to the operation of the single points of contact;
- (f) the number and nature of net-zero regulatory sandboxes;
- (g) the amount of CO2 stored permanently underground in accordance with Directive 2009/31/EC.
Where they are not already included in, or in accordance with the elements of, the national energy and climate plans, each Member State shall submit to the Commission a report setting out the data referred to in paragraph 2 by 15 March 2027 and every three years thereafter.
The reporting obligation referred to in paragraph 3 of this Article shall not apply where Member States consider that it would be contrary to their essential security interests pursuant to Article 346 TFEU.
The Commission may adopt implementing acts to provide a template for the reports referred to in paragraph 3 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 45(2).
On the basis of the reports submitted pursuant to paragraph 3 of this Article, the Commission shall monitor the Union’s progress as referred to in paragraph 1, point (a), of this Article and publish related recommendations as part of the Annual Reports on Competitiveness of Clean Energy Technologies, pursuant to Article 35(2), point (m), of Regulation (EU) 2018/1999. The recommendations shall also consider whether all the net-zero technologies necessary to achieve the objectives laid down in Article 1 of this Regulation are covered by this Regulation.
On the basis of the draft permit applications submitted pursuant to Article 10 of Directive 2009/31/EC and of the reports submitted pursuant to Articles 21(2), 23(4) and 23(6) of this Regulation, the Commission shall monitor the progress towards reaching the Union-wide target for CO2 injection capacity as referred to in paragraph 1, point (d), of this Article. The Commission shall report annually thereon to the European Parliament and to the Council.
The Commission shall inform the Platform on of its findings in relation to this Article.
CHAPTER IX FINAL PROVISIONS
Article 43
Delegation of power
The Commission is empowered to adopt delegated acts in accordance with Article 44 to amend the arrangements whereby agreements between entities referred to in Article 23(1) and investments in storage capacity held by third parties are taken into account to meet their individual contribution set out in Article 23(5) and to establish the content of the reports referred to in Article 23(6).
Article 44
Exercise of the delegation
The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.
The power to adopt delegated acts referred to in Article 23(12), Article 43 and Article 46(7) shall be conferred on the Commission for a period of five years from 29 June 2024. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.
The delegation of power referred to in Article 23(12), Article 43 and Article 46(7) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.
As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
A delegated act adopted pursuant to Article 23(12), Article 43 or Article 46(7) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Article 45
Committee procedure
The Commission shall be assisted by a Committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011. For matters related to Article 25 of this Regulation, the Commission shall be assisted by the Advisory Committee on Public Procurement established by Council Decision 71/306/EEC ([^E0010]). For matters related to Article 26 of this Regulation, the Commission shall be assisted by the Energy Union Committee established by Article 44 of Regulation (EU) 2018/1999.
Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
Article 46
Evaluation
By 30 June 2028 and every three years thereafter, the Commission shall evaluate this Regulation and present a report on its main findings to the European Parliament, to the Council and to the European Economic and Social Committee.
The evaluation referred to in paragraph 1 shall assess:
- (a) whether the objectives of this Regulation as laid down in Article 1, in particular its contribution to the functioning of the internal market, have been achieved, this Regulation’s impact on business users, in particular SMEs, and end users, and the European Green Deal objectives;
- (b) whether this Regulation is fit to deliver beyond 2030 and towards the longer term 2050 climate neutrality target referred to in Article 1, taking into account, among other aspects, the possibility to include in this Regulation other technologies that can play a significant role in achieving climate neutrality by 2050;
- (c) whether benchmarks for specific technologies are needed in order to achieve the security of supply of those technologies for the Union.
The evaluation shall take into account:
- (a) the result of the monitoring process referred to in Article 42;
- (b) the technology needs stemming from the updates of the national energy and climate plans, including the Strategic Energy Technology Plan, taking into account the most recent State of the Energy Union Report.
Within the same period referred to in paragraph 1 of this Article, as well as after each renewal or update of the national energy and climate plans and after consulting with the Platform, the Commission shall assess the need, and where appropriate submit a proposal, to expand the list of net-zero technologies set out in Article 4.
The competent authorities of the Member States shall provide the Commission with any relevant information they have and that the Commission may require to draw up the report referred to in paragraph 1.
Where, on the basis of the report referred to in paragraph 1 of this Article, the Commission concludes that the Union is likely not to achieve the objectives set out in Article 1(1), it shall, after consulting the Platform, assess the feasibility and proportionality of proposing measures in order to ensure the achievement of those objectives.
By 30 March 2025, the Commission shall adopt a delegated act in accordance with Article 44 to amend the Annex on the basis of the list of net-zero technologies set out in Article 4, in order to identify the sub-categories within net-zero technologies and the list of specific components used for those technologies. That delegated act shall be based on a comprehensive assessment to identify specific essential components that can reasonably be considered to be primarily used for net-zero technologies. That assessment shall be based on a methodological analysis of the supply chains of the net-zero technologies, taking into account, in particular, the commercial availability of the components, the appropriate level of detail and developments in technology. The Commission may review that delegated act on the basis of that assessment.
Article 47
Handling of confidential information
Information acquired in the course of implementing this Regulation shall be used only for the purposes of this Regulation and shall be protected by the relevant Union and national law.
Member States and the Commission shall ensure the protection of trade and business secrets and other sensitive, confidential and classified information obtained and processed in application of this Regulation, including recommendations and measures to be taken, in accordance with Union and relevant national law.
The Commission and Member States shall ensure that classified information provided or exchanged pursuant to this Regulation is not downgraded or declassified without the prior written consent of the originator in accordance with relevant Union or national law.
Where a Member State considers that the disclosure of aggregated information pursuant to Article 23 is likely to compromise its national security interest, it may, by means of a reasoned notice, object to the Commission’s disclosure of that information.
The Commission and the national authorities, their officials, employees and other persons working under the supervision of those authorities shall ensure the confidentiality of information obtained in carrying out their tasks and activities in accordance with relevant Union or national law. This obligation also applies to all representatives of Member States, observers, experts and other participants attending meetings of the Platform pursuant to Article 39.
Article 48
Amendment to Regulation (EU) 2018/1724
Regulation (EU) 2018/1724 is amended as follows:
- (1) in Annex I, in the first column, a new row ‘R. Net-zero technology manufacturing projects’ is added;
- (2) in Annex I, in the second column, in the row ‘R. Net-zero technology manufacturing projects’, the following points are added:
- ‘1. information on the permit-granting process;
-
- financing and investment services;
-
- funding possibilities at Union or Member State level;
-
- business support services, including but not limited to corporate tax declaration, local tax laws, labour law.’ ;
- (3) in Annex II, in the first column, a new row ‘Net-zero technology manufacturing projects’ is added;
- (4) in Annex II, in the second column, in the row ‘Net-Zero technology manufacturing projects’, the following point is added: ‘Procedures for all relevant permits to build, expand, convert and operate net-zero technology manufacturing projects, and net-zero strategic projects, including building, chemical and grid connection permits, environmental assessments and authorisations where required, and encompassing all applications and procedures.’
- (5) in Annex II, in the third column, in the row ‘Net-Zero technology manufacturing projects’, the following point is added: ‘All outputs pertaining to the procedures ranging from the acknowledgement that the application is complete to the notification of the comprehensive decision on the outcome of the procedure by the designated contact point.’
- (6) in Annex III, the following point is added: ‘(8)Single points of contact established or designated, pursuant to Article 6(1) of Regulation (EU) 2024/1735 of the European Parliament and of the Council ([^E0011]), including for the purposes of Article 18(1) of that Regulation and contact points established or designated pursuant to Article 33(1) thereof.
Article 49
Entry into force and application
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.
It shall apply from 29 June 2024.
Until 30 June 2026, Article 25(1) shall apply only to contracts concluded by central purchasing bodies as defined in Article 2(1), point (16), of Directive 2014/24/EU and Article 2(1), point (12), of Directive 2014/25/EU and for contracts of a value equal to or higher than EUR 25 million.
Articles 26 and 28 shall apply from 30 December 2025.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
ANNEX
List of final products and specific components considered to be primarily used for the production of net-zero technologies
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