The EU governments have formally cleared a new law that will push member states to produce more green tech inside the EU.
The Net Zero Industry Act (NZIA) will become law in late June or early July this year after it has been signed by the presidents of the European Parliament and Council.
The law mandates that 40% of all EU solar panels, wind turbines, heat pumps and other clean tech must be manufactured inside the EU, ensuring that the bloc remains competitive with China and the US for green technologies.
Analysts have been examining what the UK could learn from this as the country seeks to boost the manufacturing and installation rates for green technologies. Gareth Redmond-King, head of international programme at the Energy and Climate Intelligence Unit (ECIU), said: “The US and now the EU have plans for securing major investment in net zero industries. Despite some efforts to try to create culture wars in certain European countries, the EU is clearly committed to shifting to clean technologies and getting off Russian fossil fuels.
“CBI Economics estimates the UK’s net zero economy is worth £74bn, growing 9% in the last year compared to relative stagnation in the broader economy, but this cannot be taken for granted. The UK took an early lead in offshore wind, but the Government’s failure to secure new wind farms at its last auction clearly sent the wrong message to investors. This is a global race to win market share in the industries of the future, and the UK needs to be offering a clear plan and the right incentives. Polling shows the public sees renewables as the number one growth industry for the UK.
“More British renewables means less reliance on gas, the price of which can be highly volatile as anyone paying an energy bill in the past two years knows.”
Green manufacturing in the UK
With the UK seeking to become a “world leader” in floating offshore wind and other renewable technologies, the nation has realised it needs to shift its industrial economy.
In April, RenewableUK, the Offshore Wind Industry Council, The Crown Estate and Crown Estate Scotland published a detailed Industrial Growth Plan (IGP) designed to boost investment in the UK’s green energy technology sector by tripling offshore wind manufacturing capacity over the next decade.
This follows a damning report which slammed the UK as the worst of the top Western European economies for green funding.
However, in recent times, the UK has invested more energy into the development and manufacturing of new technologies, especially wind turbines. UK Research and Innovation recently announced it had approved an £85.6 million funding package to give the UK an advantage in developing offshore wind technologies, including developing new testing facilities for “super turbine” blades up to 150 metres long.
