On 29 June 2023, Bruegel Senior fellow Simone Tagliapietra presented testimony before European Economic and Social Committee on the Net Zero Industry Act.
The European Commission unveiled in March its legislative proposal for an EU response to the US Inflation Reduction Act: the Net Zero Industry Act (NZIA). The proposal contains several controversial elements and misses some other important ones. The European Parliament and EU countries in the Council of the EU should reboot the proposal and refocus its objectives, sharpening its limited instruments, improving its governance, and adding financial incentives to ensure implementation. In parallel, the EU should develop a broader green industrial policy strategy that leverages the single market in a credible manner, building a solid new governance framework and a new EU-level funding approach.