Regulation (EU) 2024/1735 (Consolidated text)

This Communication from the European Commission to the other European Institutions provides an initial roadmap of key policies and strategies required to achieve the European Union's "new growth strategy", centred on the concept of the European Green Deal. It aims at enhancing the union's climate targets and sets four core goals: 1) climate-neutrality by 2050, 2) protection of human life, animals and plants by cutting pollution, 3) helping companies become world leaders in clean products and technologies, and 4) help ensure a just and inclusive transition. These goals should be reached by developing a circular economy, decarbonising the energy sector, renovate buildings, support the industry to innovate, and green private and public transport systems.

European Green Deal

Laws and Policies

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CCLW national policies

Regulation (EU) 2024/1735 of the European Parliament and of the Council of 13 June 2024 on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724

Commission Delegated Regulation (EU) 2025/1463 of amending Regulation (EU) 2024/1735 as regards the identification of sub-categories within net-zero technologies

Regulation (EU) 2024/1735 Published

Amended

This Regulation also known as the Net-Zero Industry Act (NZIA) establishes a framework to strengthen Europe’s net-zero technology manufacturing ecosystem and amends Regulation (EU) 2018/1724. Regulation (EU) 2018/1724 is amended by including provisions related to the online availability of information and assistance for businesses in the net-zero technology sector, simplifying the process for companies to comply with environmental and sustainability regulations, among others.
The Regulation aims to ensure the European Union's access to a secure and sustainable supply of net-zero technologies by scaling up the manufacturing capacity of net-zero technologies and their supply chains to safeguard their resilience while also contributing to achieving the union’s climate targets and climate neutrality objective. It intends to decarbonise the EU’s economy and society by contributing to the creation of quality jobs in net-zero technologies and improving the competitiveness of the union.
Article 1 provides that the measures set in the regulation aim to:
“(a) lower the risk of supply disruptions related to net-zero technologies likely to distort competition and fragment the internal market, in particular by identifying and supporting the scale-up of the manufacturing capacity of net-zero technologies and their supply chains;
(b) establish a Union market for CO 2 storage services;
(c) encourage demand for sustainable and resilient net-zero technologies through public procurement procedures, auctioning and other forms of public intervention;
(d) enhance skills through the support of the Academies, thereby safeguarding and creating quality jobs;
(e) support innovation through the creation of net-zero regulatory sandboxes, coordination of research and innovation activities through the Strategic Energy Technologies Plan Steering Group, as well as through the use of pre-commercial procurement and public procurement of innovative solutions;
(f) improve the Union’s ability to monitor and mitigate supply risks related to net-zero technologies.”
In 2025 the regulation was amended by a Commission Delegated Regulation outlining the list of final products and specific components considered to be primarily used for the production of net-zero technologies.

Regulation (EU) 2024/1735 establishing a framework of measures for strengthening Europe’s net-zero technology ( Net-Zero Industry Act or NZIA) and amending Regulation (EU) 2018/1724

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Aligning the skills of the workforce with the requirements of the just transition.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Energy derived from biological compounds that are renewable due to their short life cycle within the carbon dioxide cycle.

Financial actors and resources that are primarily directed towards climate change mitigation, adaptation and compensation.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

Actions to adapt human health, healthcare systems and well-being to climate change.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Actions or measures to adapt freshwater systems to climate change.

Electricity generation from devices driven by the movement of salt water, differences in saltwater temperatures, or salinity gradients.

A financial institution that manages a country's currency and can promote climate-related initiatives through green monetary policy and other means.

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

Electrical energy generated from mechanical devices driven by flowing fresh water.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

Production of electricity and heat from solar irradiation.

Conditions that enhance the feasibility of adaptation options. Enabling conditions include finance, technological innovation, strengthening policy instruments, institutional capacity, multi-level governance and changes in human behaviour and lifestyles.

This sector involves the distribution, treatment, and conservation of water resources.

Dedicated pool of financial resources for climate-related projects.

This sector provides communication services, software development, and IT solutions.

Jobs that contribute to preserving or restoring the environment. We include jobs which require a high amount of green skills or which spend much of their time on green activities, as well as jobs transforming polluting industries.

People whose health, both mental and physical, makes them more vulnerable to the effects of climate change

woman and genders outside of the gender binary

Codes and standards are regulatory instruments that specify minimum standards to protect health and safety. This ranges from performance standards, which prescribe outcomes while allowing flexibility to achieve compliance, to the more prescriptive approach of technology-specific standards.

This sector involves activities to move goods and people, alongside the storage of products.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

This sector involves the wholesale and retail selling of goods.

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

People with different national or cultural traditions from the dominant population

Using laws and the legal system more broadly to protect vulnerable entities

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Heat extracted from the ground, usually in the form of hot water or steam and typically referred to as hydrothermal fluid.

Any substance with chemical properties that can cause physical harm to people or damage the environment, including ammonia, carbon monoxide, phosphine, chlorine, arsenic, cadmium, mercury, pesticides, dioxins, microplastics, benzene, asbestos, aflatoxins, fluoride, methanol, and toxins from marine sources.

People who have left their homes, whether through force, voluntarily, or a mixture of both

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Kinetic energy of airflow transformed into useful energy, mostly electrical energy.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

Zoning and spatial planning are both methods for guiding the distribution of people and activities in a space, and are regulatory restriction.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

Climate change impacts our society by disrupting the natural, economic and social systems we depend on. Physical hazards and underlying vulnerabilities can lead to increased resource competition for food and water, which can heighten the risk of conflict.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

Actions to adapt and increase the resilience of rural and urban infrastructure and settlements to climate change.

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

A potent, short-lived greehouse gas, largely released from livestock, fossil fuel extraction and waste management.

The processes through which enterprises can identify, prevent, mitigate and account for how they address their actual and potential adverse impacts. Due diligence is the idea that reasonable precautions should be taken to avoid causing harm to people, the environment, or society. It also involves identifying and mitigating risks before they occur.