European Commission proposes Net Zero Industry Act

The European Commission is proposing a set of green regulations that could significantly affect the air cargo industry with regard to sustainability technology initiatives. The proposal outlined in the Net Zero Industry Act follows implementation of the U.S. Inflation Reduction Act 2022, which allotted tax breaks and government funding for decarbonization efforts across air logistics markets and other sectors. “We stress that the objective of the <a href="https://nam04.safelinks.protection.outlook.com/?url=https%3A%2F%2Fsingle-market-economy.ec.europa.eu%2Fpublications%2Fnet-zero-industry-act_en&data=05%7C01%7Ccblackann%40royalmedia.com%7C81d663975eee496e333708db2a3c4ac8%7Ce43c192058cd40998ac829dff7de1368%7C0%7C0%7C638150210688270436%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=hvjPu9biewDgyC%2FKm3Wdx7OiSwIgJvErypt5111V0S8%3D&reserved=0"> Net-Zero Industry Act is to scale up manufacturing of clean technologies in the EU and make sure the Union is well-equipped for the clean-energy transition,” Federica Miccoli , spokesperson for the EC, told Air Cargo News . “The act will strengthen the resilience and competitiveness of net-zero technologies manufacturing in the EU and make our energy system more secure and sustainable. “It will create better conditions to set up net-zero projects in Europe and attract investments, with the aim that the Union’s overall strategic net-zero technologies manufacturing capacity approaches or reaches at least 40% of the Union’s deployment needs by 2030, she added.” The main goals of the proposal are decarbonization through carbon capture and storage, and examining renewable jet fuels and technological innovations that support greener processes, however Miccoli said it was premature to comment on the proposal’s impact to specific industries. “This initiative was announced by President [Ursala] von der Leyen as a part of the <a href="https://nam04.safelinks.protection.outlook.com/?url=https%3A%2F%2Fec.europa.eu%2Fcommission%2Fpresscorner%2Fdetail%2Fen%2Fip_23_510&data=05%7C01%7Ccblackann%40royalmedia.com%7C81d663975eee496e333708db2a3c4ac8%7Ce43c192058cd40998ac829dff7de1368%7C0%7C0%7C638150210688270436%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=1H8cz42ySpOJxBcxPpddLSIaiU2gkQVN4%2FrMKyjwNvM%3D&reserved=0"> Green Deal Industrial Plan ,” she said . “The proposed regulation now needs to be discusse d and agreed by the European Parliament and the Council of the European Union before its adoption and entry into force.” Working toward milestone Long-term air cargo industry goals outlined by The International Air Cargo Association include becoming carbon free by 2050 . One step toward reaching this milestone is using sustainable aviation fuels (SAF), which are created using animal fat, used cooking oil and other waste products. Cost and availability are stumbling blocks for the industry to adopt SAF. It is three to five times more expensive than traditional jet fuel and demand outstrips production. It is commonly known that the industry cannot attain these decarbonization targets without government incentives, which could make the Net Zero Industry Act a valuable tool in aviation. “ As to available feedstock, any areas with agricultural, forestry or pulping industries could potentially have by-product, which would be good source material for SAF production,” Glyn Hughes director general of TIACA, previously told Air Cargo Next . “However, SAF production is very expensive compared to traditional jet kerosene production. Hence why we believe governments should incentive and support research and development as SAF is significantly more beneficial for the planet.” Aligning tech, decarbonization The air cargo industry is evolving with innovative technologies , including the wave of digitalization over the past decade that plays a crucial role in airfreight transportation, communication and overall operations. The Net Zero Industry Act plans to align with these technologies to promote decarbonization targets. “The proposed legislation addresses technologies that will make a significant contribution to decarbonization,” Miccoli said. According to the EC’s website, some of those technologies include solar photovoltaic, biogas/biomethane, carbon capture, grid technologies, sustainable alternative fuel technologies and advanced technologies to produce energy from nuclear processes with minimal waste from the fuel cycle. As a part of its goal to reduce emissions, the Net Zero Industry Act states that it plans to reduce greenhouse gas emissions 55% by 2030. If the act is adopted, it will go into effect immediately, Miccoli said. The EC did not disclose to Air Cargo Next how soon the legislation would be reviewed.

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