Net-zero technology manufacturing
Last update
Summary:
The Net-Zero Industry Act aims to scale up the manufacturing of clean technologies in the European Union by 2030. As such, promoters of net-zero technology manufacturing projects will benefit from the support of a national single point of contact, which will facilitate and coordinate the entire permitting process.
The Net-Zero Industry Act applies to technologies that will make a significant contribution to decarbonisation. It:
- sets binding deadlines for the entire process of granting mandatory permits. This process is coordinated by the Facilitation Unit for Urban Planning and Environment (CFUE). These deadlines are applied based on the project status and size. They start accruing as soon as each of the respective permit applications is complete;
- facilitates access to markets and is intended to stimulate demand for renewable energies through the application of sustainability and resilience criteria as part of public procurement procedures;
- recommends the establishment of regulatory 'sandboxes' for the development and testing of innovative net-zero technologies and to create fair competition conditions for innovation.
The CFUE is the preferred contact and the national single point of contact for:
- coordinating all the planning processes; and
- organising the process of granting mandatory permits by:
- facilitating individual permit applications at national level; and
- communicating with the European Commission.
Who is concerned
Manufacturers and promoters of net-zero technology manufacturing projects – namely:
- solar technologies, including photovoltaic, solar thermal electric and solar thermal technologies;
- onshore wind and offshore renewable technologies;
- battery and energy storage technologies;
- heat pumps and geothermal energy technologies;
- hydrogen technologies;
- sustainable biogas and biomethane technologies;
- carbon capture and storage (CCS) technologies;
- electricity grid technologies, including electric charging technologies for transport and technologies to digitalise the grid;
- nuclear fission energy technologies, including nuclear fuel cycle technologies;
- sustainable alternative fuels technologies;
- hydropower technologies;
- renewable energy technologies not covered under the previous categories;
- energy system-related energy efficiency technologies, including heat grid technologies;
- renewable fuels of non-biological origin;
- biotech climate and energy solutions;
- transformative industrial technologies for decarbonisation not covered under the previous categories;
- CO2 transport and utilisation technologies;
- wind propulsion and electric propulsion technologies for transport; and
- nuclear technologies not covered under the previous categories.
Deadlines
The Net-Zero Industry Act sets binding deadlines for the entire permitting process. This process is coordinated by the Facilitation Unit for Urban Planning and Environment (CFUE). The deadlines are applied based on the project status and size. They start accruing as soon as each of the respective permit applications is complete:
- for net-zero strategic projects:
- 9 months if the yearly manufacturing capacity is less than 1 GW; and
- 12 months if this capacity is greater than 1 GW or if manufacturing is not measured in GW;
- for other net-zero technology manufacturing projects:
- 12 months if the yearly manufacturing capacity is less than 1 GW; and
- 18 months if this capacity is greater than 1 GW or if manufacturing is not measured in GW;
- for net-zero technology manufacturing projects for which the yearly manufacturing capacity is not measured in GW: 18 months.
Important notes:
- the permitting process as defined in Article 3, point 19 of the Net-Zero Industry Act is a process that:
- governs all the permits that allow the construction, expansion, conversion and operation of net-zero technology manufacturing projects and net-zero strategic projects, including building permits, permits to use chemical products and permits to connect to the grid, as well as environmental assessments and authorisations when they are required; and
- encompasses all applications and procedures, from the confirmation of the completeness of the application to the notification of the complete decision on the result of the procedure through the relevant single point of contact;
- as the single point of contact, only the CFUE is authorised to coordinate and organise the process of granting the mandatory permits based on the type of net-zero technology manufacturing project;
- it exercises this authorisation in its ongoing communication with the relevant authorities;
- it:
- advises and guides the manufacturers and promoters of net-zero technology manufacturing projects during the project development phase; and
- assists these parties during the prior consultations on the applications to be authorised by the relevant authorities;
- the aforementioned deadlines of 9, 12 or 18 months for the permitting process begin to accrue as soon as each of the respective permit applications is confirmed to be complete, including the environmental impact assessment report (EIA);
- please note that in accordance with the Law of 15 May 2018 on the assessment of environmental impacts (loi du 15 mai 2018 relative à l’évaluation des incidences sur l’environnement), decisions that entitle the works owner to carry out the project must be preceded by an environmental impact assessment (EIA);
- the reasoned conclusion (i.e. the final document of the environmental impact assessment procedure) must be incorporated into the permitting decisions that will be taken on the projects in question and that apply to classified establishments, the protection of nature and natural resources, water and rural land consolidation;
- permit applications in accordance with the Law of 19 December 2008 on water (loi du 19 décembre 2008 relative à l’eau) that also apply to a project that falls within the scope of the Law of 15 May 2018 on the assessment of environmental impacts will be admissible only if the formalities related to the environmental impact assessment have been completed.
The simplified diagram below provides a summary of the environmental impact assessment procedure in 7 steps. The respective permitting processes follow the assessment procedure. For more information on the environmental impact assessment, please refer to the EIA FAQ.
Costs
The support provided by the Facilitation Unit for Urban Planning and Environment (CFUE) is free of charge.
How to proceed
Filing a request for assistance with the CFUE
Manufacturers and promoters of net-zero technology manufacturing projects are encouraged to provide notice of their initiative at a very early stage to the Facilitation Unit for Urban Planning and Environment (CFUE) through a request for assistance.
The CFUE will examine:
- whether the project fulfils at least one of the selection criteria stipulated in Article 13 of the Net-Zero Industry Act; and
- if, where applicable, it can be established as a net-zero strategic project.
The type of project, classification of the land according to the general development plan (plan d'aménagement général – PAG), the site and its location are decisive factors in producing a list of the mandatory permitting processes and any additional assessments that may need to be completed.
Application to have a net-zero technology manufacturing project recognised as a net-zero strategic project
Presentation of the application
As applicable, the promoter of the net-zero technology manufacturing project presents to the CFUE an application to have a net-zero technology manufacturing project recognised as a net-zero strategic project.
The CFUE carries out a preliminary framing and draws up the project roadmap. In doing so, it:
- takes into account the priority treatment stipulated by the Net-Zero Industry Act (see under 'Deadlines'); and
- considers whether the project has been recognised as a net-zero strategic project or not.
The CFUE advises the applicant in accordance with the Net-Zero Industry Act.
Promoters of net-zero technology manufacturing projects are authorised to submit all the documents related to the permitting procedures electronically.
Supporting documents
The application must be submitted together with:
- relevant supporting documents in connection with the criteria; and
- a business plan that assesses the financial viability of the project in accordance with the objective of creating skilled jobs.
Review of the application
The application is reviewed by the Member State within one month. If no decision is issued within this time frame, the project will be deemed to be recognised as a net-zero strategic project.
If it wishes to do so, the European Commission can offer its opinion on the approved projects.
Rejection of the application
If the application for recognition is denied by the Member State, the promoter can request an assessment. The European Commission will then issue a reasoned opinion within 20 days. If the European Commission's assessment is different from that of the Member State, the Net-Zero Europe Platform will review the project.
Priority sites
The priority sites for the location of net-zero technology manufacturers are:
- national economic activity areas and specific national areas; and
- regional economic activity areas intended as a matter of priority as sites for skilled craft activities and industrial activities.
The geographic locations of the different areas can be viewed on the Geoportal website by displaying 'existing areas' and 'planned areas' under the 'Spatial planning" heading.
NB: For additional information on the characteristics of the different areas, please contact the Ministry of the Economy (Ministère de l’Économie) directly.
Good to know
Documentation on the planning and permitting processes
The main documentation on the different planning and permitting processes related to net-zero technology manufacturing projects can be viewed below:
- Classified establishments:
- Permits related to classified establishments:
- Environmental protection:
- Conducting an environmental impact assessment (évaluation des incidences sur l’environnement – EIA)
- Permits relating to industrial emissions (IED)
- Establishments subject to the 'Seveso' law
- 'Nature protection' permit
- Waste management
- Deforestation/clearing permits
- Water management:
- Urban planning:
- Amendment of a general development plan (plan d’aménagement général – PAG) / Recommending the amendment of a general development plan (PAG)
- Implementing a special development plan (plan d’aménagement particulier – PAP) / Requesting a special development Plan (PAP)
- Applying for a road-building permit for state roads
- Applying for a works permit for railways
- Building permit
- Architectural heritage:
- Business permit:
In addition, information on the relevant procedures for net-zero technology manufacturing projects, including net-zero strategic projects, can be viewed below.
Documentation on dispute resolution
The procedures described are subject to the appeals stipulated by the specific national texts:
- Law of 22 August 2003 establishing the office of an ombudsman (loi du 22 août 2003 instituant un médiateur)
- Law of 1 December 1978 on non-contentious administrative procedure (loi du 1er décembre 1978 réglant la procédure administrative non contentieuse)
- Law of 7 November 1996 organising the administrative courts (loi du 7 novembre 1996 portant organisation des juridictions de l'ordre administratif)
Documentation on banking and investment services
There are no specific banking or investment procedures for net-zero technology manufacturing projects. Commercial banks, established financial institutions and the whole ecosystem of investment funds and sustainable finance have services that can also apply to these businesses.
The National Credit and Investment Institution (Société nationale de Crédit et d'Investissement – SNCI) provides support for businesses at each stage of their lifecycle through loans to cover some of the financing for their creation, development, knowledge transfer and innovation projects.
Documentation on financing options
At EU level, the financing of net-zero technologies may rely on the STEP Platform (Strategic Technologies for Europe Platform). This platform was created by the EU to support European manufacturing and stimulate investment in critical technologies, such as digital and innovation technologies, deep tech, clean and efficient technologies and biotechnologies.
More information on these options can be found in the interactive dashboard.
As the national point of contact for the European programmes Horizon Europe and Innovation Fund, Luxinnovation can provide businesses with guidance and support in these programmes.
At national level, financial aid for RDI projects, investment aid for environmental protection, financial aid for SMEs and financial aid for regional investments can be applied subject to certain terms and conditions.
A business engaging in an ecological and energy transition project may also qualify for tax relief.
Documentation on support services for businesses
There is a wide array of support services available to advise, assist and support businesses at all stages of creation, development and innovation. Key players include:
Documentation on public procurement contracts
Documentation on public procurement contracts can be viewed here:
Who to contact
Ministry of Housing and Spatial Planning Facilitation Unit for Urban Planning and Development (CFUE)
- Address:
- 4, place de l’Europe L-1499 Luxembourg Luxembourg
- Email address:
- cfue@mat.etat.lu
Related procedures and links
Links
Further information
-
Net-Zero Industry Act
on the website of the European Commission
-
FAQ - Évaluation des incidences sur l’environnement (EIE)
sur emwelt.lu - le portail de l'environnement
Legal references
on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem
