The study aims to address the challenge of establishing a reliable assessment of the state of net-zero technology manufacturing in the EU, given the limited availability of data. Its primary goal is to bridge this data gap, providing a foundation for more targeted recommendations.
The report is based on 2 key components: first, a detailed mapping of the manufacturing capacity for selected net-zero technologies in all EU countries; and second, an in-depth analysis of the existing policies and incentives that support the scaling up of manufacturing capacities at national level. This includes examining regulatory frameworks, permit-granting processes, investment incentives, and skills development programmes. Through this analysis, the study identifies existing bottlenecks and highlights both the challenges and opportunities for increasing production capacity.
The findings offer a detailed picture across EU countries, showcasing best practices in policy frameworks that directly address manufacturing capacity for net-zero technologies. Overall, nearly 3 quarters of EU countries have introduced incentive programmes to encourage investments in the manufacturing of net-zero technologies.
At EU-level, the Net-Zero Industry Act creates a regulatory framework to enhance European manufacturing capacity for net-zero technologies and key components, addressing barriers to scaling up production in Europe.
The report found that Europe has strong manufacturing capacities and holds a good position for upscaling CCS. However, its deployment is hindered by lacking storage infrastructure and services that would support the scaling up. Qualified workers are also missing in the picture as skill sets overlap with other industries which results in competition for skilled workers.
It also found that the need for a stable regulatory framework with a long-term view is a condition for investments whose current rates are too low to meet the targets. Lastly, stakeholders confirmed that the lack of public acceptance is hindering the development of CCS activities.