Invest in EU Hub

This webpage includes an introduction to the Invest in EU Hub, details of the Call for Strategic Projects under the Net-Zero Industry Act (NZIA) and a disclaimer.

About the "Invest in EU Hub"

The "Invest in EU Hub" is a new service to promote Japanese investments in the EU. It will ‘signpost’ potential Japanese investors and other stakeholders to relevant sources of information and resources at EU-level and in EU27 member-states.

The "Invest in EU Hub" is a new service to promote Japanese investments in the EU. Its aim is to provide information to Japanese investors and stakeholders about key EU-level investment opportunities available to non-EU investors. These opportunities take the form of programmes supported or co-financed by the European Commission, the European Investment Bank or other EU-level institutions. For additional information, click on the links provided or approach the relevant contact point indicated.  

Soon this Invest in EU Hub webpage will also offer signposts to EU27 Member States’ services for information about investment conditions and support available at individual EU Member State level.

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Calls for Strategic Projects under the Net-Zero Industry Act (NZIA)

On 29 June 2024, EU Regulation 2024/1735 establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem came into force following its publication in the previous day's Official Journal.

The Net-Zero Industry Act (NZIA, or「ネットゼロ産業法（NZIA）」in Japanese) is a framework of measures to strengthen Europe's 'ecosystem' for net-zero technology products and is in part a reaction to the US Inflation Reduction Act and China's near monopoly on many critical exports. It will scale up the EU's manufacturing capacity of the technologies needed to achieve climate neutrality (linked to the EU's commitment to achieve carbon neutrality by 2050) and ensure that the EU can transform its economy and maintain its open strategic autonomy while giving its citizens access to clean, affordable and secure energy without creating new dependencies.

Linked to the Green Deal Industrial Plan, the NZIA will

• Strengthen the resilience and competitiveness of net-zero technology manufacturing in the EU, reinforcing Europe's leadership in industrial green technologies, and
• Accelerate progress towards the EU's 2030 climate and energy targets while creating quality jobs.

The key provisions of the NZIA are:

1. Increasing investment certainty, notably by setting two benchmarks: ramping up the manufacturing of net-zero products to meet >40% of deployment needs and attaining an annual CCS injection capacity of >50m tonnes of CO₂ by 2030 to facilitate the development of CCS projects,
2. Streamlining project lead times (fast permit-granting and streamlining rules for issues such as environmental impact assessments),
3. Creating demand for sustainable products (through the application of non-price criteria in public procurement, auctions for green power and subsidy schemes),
4. Leveraging novel concepts to boost skills, innovation and clustering (with the creation of academies to boost skills, regulatory sandboxes and ‘Net-zero Acceleration Valleys’ to create industrial clusters,
5. Supporting strategic projects (the Net-Zero Europe Platform foreseen in Articles 38 & 39 will give them priority status for administrative processes and advice on financing including via instruments such as InvestEU, the STEP Regulation and national resources such as 'Important Projects of Common European Interest').

What are 'net-zero strategic projects’ and what benefit does a project get from having such a status?

Strategic projects are vital for enhancing the resilience, strategic autonomy, and competitiveness of the EU’s net-zero industry and will help scale up the manufacturing of technologies essential for climate-neutrality. Projects will be assessed for:

• Their potential contributions to the EU's technological and industrial resilience;
• Their positive impact on the Union’s net-zero industry supply chain or downstream sector;
• Their contribution to reaching the Union’s climate and energy objectives through improved environmental sustainability and performance or circularity features.

A simplified application process is available for projects benefitting from the ETS Innovation Fund, Important Projects of Common European Interest, Hydrogen Valleys, the Hydrogen Bank, cohesion funding or those located in ‘less developed and transition regions’ or Just Transition Fund territories.

The benefits of having 'Strategic Project' status include:

• Priority status at national level for all administrative processes (including permit-granting processes, environmental assessments and spatial planning;
• Faster permitting via shorter overall time-limits for the duration of the entire permit-granting process (9-12 months);
• Entitlement to being discussed by the Net-Zero Europe Platform which may also offer financing advice;
• Urgent treatment in dispute resolution procedures, litigation, appeals, judicial remedies;
• Potential consideration for an ‘overriding public interest’ regarding exemptions in environmental legislation).

To ensure the potential of the NZIA is fulfilled, the EU Authorities need to accelerate consultations and decision-making processes and promote simple and practical information; EU businesses need to transform themselves and build partnerships with more ambitious companies; and non-EU businesses need to establish manufacturing facilities in the EU and ensure access to the world's most important markets.

Member States will recognise as "net-zero technology manufacturing projects" (defined under §16 of Article 3 as, "planned industrial facility or extension or repurposing of an existing facility manufacturing net zero technologies") projects that, under Article 13, either:

• Increase the manufacturing capacity of a component or part for which the EU heavily depends on imports from a single third country; or
• Contribute to EU's supply chain competitiveness according to at least three of the following criteria by:
  • Adding significant production capacity in the EU for net zero technologies;
  • Developing technologies with improved sustainability and performance, taking the global level as a reference point;
  • Putting into place measures to attract, upskill and reskill the EU workforce; or
  • Adopting low carbon and circular manufacturing practices.

Are Japanese entities able to engage with the NZIA?

Yes, provided the project is located in the European Union, project promoters from third countries can apply.

In June 2024, METI published a one-page summary in Japanese of the NZIA's main details:

What is the timeline?

There is no deadline by when applications for Strategic Projects under the NZIA must be submitted. Applications can be submitted at any time. Member States normally have 30 days from when the application is submitted to give a reasoned decision (although this can be extended up to a further 30 days). Should the Member State reject the application, the project promoter can submit an application to the European Commission. The Commission has 20 working days to give its decision. If the assessments of the Commission and the Member State differ, the Net-Zero Europe Platform will discuss the project.

Background reading:

• Regulation (EU) 2024/1735 of 13 June 2024 as published in the Official Journal of 28 June 2024
• "EU理事会と欧州議会、EUのグリーン産業の強化に向けた合意を得る", a summary in Japanese of the Council of the EU press release of 06/02/2024.
• A Council of the EU infographic on the NZIA.
• The European Commission webpages about "The Net-Zero Industry Act explained", "The Net-Zero Industry Act: Accelerating the transition to climate neutrality", "Strategic projects under the NZIA" and "Questions and Answers on the Net-Zero Industry Act".
• The proposal for a regulation on establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act).
• A LinkedIn post by Kerstin Jorna on the entry into force of the NZIA.
• "The European Net Zero Industry Act", analysis by Clifford Chance LLP
• "EUネットゼロ産業法のインパクトー雇用機会創出は300万人規模ー", analysis in Japanese by 'Strategy&'

More information

The 'Strategic Projects under the NZIA' website includes the Application Form, a 'Guide for Applicants' for NZIA Strategic projects, and FAQ about the application process and about the benefits that Strategic Projects status offers. Any questions? E-mail ec-nzia-strat-prj@ec.europa.eu

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Disclaimer

The EU-Japan Centre for Industrial Cooperation is not involved in any way in the calls / proposals promoted on this webpage (i.e., it has no role in accepting or processing questions or offers submitted in relation to a call). The contents of this webpage are made available for general information and non-commercial purposes only. It does not claim to be comprehensive or up to date and is not intended to provide legal or other advice. No person should rely on the contents of this webpage without first obtaining advice from a qualified professional person.

If you have questions about the 'Invest in EU Hub' as opposed to the calls or other proposals featured on this webpage please email us.