NZIA’s Flawed Approach: Picking Winners Instead of Setting the Rules
The Net-Zero Industry Act (NZIA) is a big step for Europe's clean energy future, but it has a fundamental flaw: it pre-selects technologies for funding and streamlined permitting instead of setting clear criteria for success. While the goal is to boost strategic industries, this approach risks stifling innovation and locking out promising solutions that don’t fit neatly into the chosen categories. If the EU insists on a list-based approach, then it must at least ensure that all key components of eFuel production are explicitly included.
Renewable fuels of non-biological origin (RFNBOs) are an essential piece of the net-zero puzzle, yet their enabling technologies are often overlooked. The production process isn’t limited to just electrolysis; it involves multiple conversion steps, including syngas reactors, CO₂ hydrogenation, and Fischer-Tropsch synthesis. Without recognizing these elements, the NZIA will create unnecessary roadblocks for eFuel producers, limiting Europe’s ability to scale truly sustainable alternatives to fossil fuels.
The same problem applies to sustainable aviation fuels (SAF). The terminology in the legislation is unclear, and while SAF is often associated with aviation, the underlying technologies are just as relevant for maritime and other sectors. Electrochemical processes, catalytic conversions, and intermediate fuel synthesis all play a role in producing viable eFuels. Failing to acknowledge these methods risks reinforcing artificial sector-specific silos that slow down industrial development rather than accelerating it.
Beyond production, the NZIA must also recognize the importance of CO₂ transport and utilization technologies. Capturing and converting CO₂ into fuels is a cornerstone of the Power-to-X value chain, yet the legislation doesn’t sufficiently address electrochemical pathways that enable this transformation. If Europe wants to lead in industrial decarbonization, it must ensure that emerging CO₂ conversion technologies, from plasma-assisted reactions to electrochemical synthesis, are fully accounted for in regulatory frameworks.
The Net-Zero Industry Act (NZIA) also overlooks Direct Ocean Capture (DOC) technologies, a critical omission that could impede the scaling of a promising carbon removal solution. DOC, which captures CO₂ directly from seawater, has significant potential for helping achieve net-zero emissions. By not including it in the NZIA’s list of eligible technologies, Europe risks missing an opportunity to support a scalable, sustainable technology that could complement other carbon capture efforts. To maintain its leadership in clean energy, the EU must ensure DOC is recognized and integrated into the regulatory framework.
The bottom line is simple: If the EU is going to dictate which technologies deserve prioritized support, it must do so with a full understanding of what’s needed for a functioning renewable fuel economy. Excluding critical elements of eFuel production, SAF synthesis, and CO₂ utilization would be a major misstep—one that could cost Europe its leadership position in clean fuels. The NZIA should be a driver of innovation, not a gatekeeper that slows it down.
