Cefic's Position Paper on the Net-Zero Industry Act

Net-Zero Industry Act is not ready for the obstacle race of global competition to climate neutrality.


Cefic, published the position paper dated May 2023, on the subject of '' Net-Zero Industry Act is not ready for the obstacle race of global competition to climate neutrality".

Summary Information:

The chemical sector plays a strategic role in the European economy. Most of the goods produced in Europe are based on many different chemicals and materials that are essential for a wide range of functions. Chemicals are at the heart of Europe's major value chains, including wind turbines, solar panels, electronics, construction materials, automotive and much more. By reducing its own CO2 footprint and improving material performance, the chemical industry has the potential to reduce emissions in downstream sectors.

- Consider the entire industrial value chains and promote manufacturing in Europe

o In its current form, the NZIA can help reduce emissions primarily from combustion and energy, while having only a limited impact on other related emissions along the value chain.

- Promote technology neutrality and expand the scope of the NZIA

o The list of '(strategic) net zero technologies' should have a technology-neutral approach.

o The transition to a circular economy should also be taken into account.

- Carbon Capture and Utilization is strategic

o Cefic calls on the EU institutions to include and strategically consider CCU technologies in the NZIA.

o In parallel, the contribution of CCU technologies should be duly recognized in the EU ETS to ensure a level playing field.

- Industrial transformation through feedstock transition

o 'Net zero technology integration projects' 

o Net zero technology integration projects should be given similar benefits as net zero technology manufacturing projects.

- European intervention lacks a widespread deployment roll-out of operating cost support

o Europe should take inspiration from the US IRA and avoid distortions of the EU Single Market when designing effective financing schemes for both CAPEX and OPEX support.

- A sectoral and holistic view on industrial transformation is key

o Europe needs a holistic approach to industrial transformation that concretely creates the conditions for a competitive environment.

o We recommend alignment between the NZIA and the EU Transition Pathway for the Chemical Industry.

Access Cefic's position paper HERE.