The European Solar Manufacturing Council (ESMC) has submitted official feedback to the European Commission regarding the renewable energy auction provisions, project selection criteria for net-zero strategies, and the list of key components for net-zero technologies outlined in the EU’s Net-Zero Industrial Act (NZIA). While supporting NZIA’s aim of strengthening Europe’s clean energy manufacturing sector, ESMC calls for improvements to ensure policy effectiveness and stability.
ESMC Secretary-General Christoph Podewils noted that renewable energy auctions are a powerful means of enhancing Europe’s energy independence and sustainability, but the lack of stringent standards could allow China to continue dominating the market, impacting the development of Europe’s solar PV industry. He suggested incorporating a ‘Made in Europe’ clause to fund locally sustainable-produced solar components, inverters, and other critical materials with European taxpayers’ money.
ESMC welcomed the EU Commission’s prequalification and bid-winning criteria for renewable energy auctions under NZIA Article 26, aligning with the EU’s goal of achieving a 30GW solar PV production capacity across the entire supply chain by 2030. However, ESMC highlighted risks and potential loopholes that could undermine this objective:
- Safeguarding ‘Made in Europe’ Interests: The standards must include a ‘Made in Europe’ clause to benefit European manufacturers in auctions and enhance local competitiveness.
- Carbon Footprint Assessment to Prevent Greenwashing: Fully implement carbon footprint assessment methods to eliminate greenwashing, ensuring clear and transparent sustainability standards for genuinely eco-friendly products to shine.
- Strengthening Security Against External Control: Enhance cybersecurity and data protection to prevent foreign control over critical solar PV infrastructure, safeguarding energy security.
- Prohibiting Forced Labour and Adhering to Relevant Legislation: Explicitly incorporate clauses prohibiting forced labour, referencing EU legislation such as the Corporate Sustainability Due Diligence Directive and Forced Labour Regulation, ensuring ethical industrial development.
Regarding the internally leaked Clean Industry Agreement’s domestic content regulation targets, ESMC welcomed the initiative and called for NZIA to follow suit. After reviewing the draft, Christoph Podewils acknowledged the introduction of ‘minimum local content requirements’ and ‘flexibility and sustainability standards’ in public tenders for net-zero technologies like solar energy but noted NZIA’s omission of local content standards, advocating for policy consistency by incorporating relevant clauses.
This week, ESMC will submit feedback on four public consultations under NZIA Regulation 2024/1735. The European Commission will unveil the Clean Industry Agreement on February 26th, local time.
