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 (Text with EEA relevance)

The general objective of this Regulation is to improve the functioning of the internal market by establishing a framework in order to ensure the Union’s access to a secure and sustainable supply of net-zero technologies, including by scaling up the manufacturing capacity of net-zero technologies and their supply chains to safeguard their resilience while contributing to achieving the Union’s climate targets and climate neutrality objective, as defined in Regulation (EU) 2021/1119, with a view to the decarbonisation of the Union’s economy and society, and by contributing to quality jobs in net-zero technologies, and thereby also improving the competitiveness of the Union.

To achieve the general objective referred to in paragraph 1, this Regulation lays down measures aiming to:

With the exception of Articles 33 and 34 of this Regulation, which apply to innovative net-zero technologies and other innovative technologies, this Regulation applies to net-zero technologies. Critical raw materials falling under the scope of Regulation (EU) 2024/1252 are excluded from the scope of this Regulation.

In the case of integrated production facilities that cover the production of materials falling both under the scope of Regulation (EU) 2024/1252 and of this Regulation, it shall be the facilities’ final product that determines which Regulation applies.

With the exception of Articles 5, 25, 26 and 28, this Regulation applies to energy-intensive industry decarbonisation projects that are part of the supply chain of a net-zero technology and that reduce emission rates of CO2-eq of industrial processes significantly and permanently to an extent which is technically feasible.

The net-zero technologies within the scope of this Regulation shall be:

Paragraph 1 shall be without prejudice to a Member State's right to determine its choice between different energy sources and the general structure of its energy supply.

Paragraph 1 shall be without prejudice to the allocation of Union funding, in particular on eligibility or award criteria, as adopted in accordance with the appropriate procedures, or on Union support through the EIB.

The Commission and Member States shall support net-zero manufacturing projects in accordance with this Chapter in order to ensure the reduction of strategic dependencies in the Union of net-zero technologies and their supply chains by reaching a manufacturing capacity for those technologies of:

By 30 December 2024 Member States shall establish or designate one or more authorities as single points of contact at the relevant administrative level. Each single point of contact shall be responsible for facilitating and coordinating the permit-granting process for net-zero technology manufacturing projects, including for net-zero strategic projects, and for providing information on streamlining the administrative processes in accordance with Article 7, including information on when an application is considered to be completed in accordance with Article 9(10).

Where a Member State establishes or designates more than one single point of contact pursuant to paragraph 1 of this Article the Member State shall provide tools to help project promoters identify the appropriate established or designated contact point on the online web page set up in accordance with Article 7.

A single point of contact established or designated pursuant to paragraph 1shall be the sole point of contact for the project promoter in the permit-granting process for a net-zero technology manufacturing project, including a net-zero strategic project. It shall coordinate and facilitate the submission of all relevant documents and information and shall notify the project promoter of the outcome of the comprehensive decision.

Project promoters shall be allowed to submit any documents relevant to the permit-granting process in electronic form.

The competent authorities shall ensure that any relevant studies carried out, or permits or authorisations issued, for a given project are taken into account and that no duplicate studies, permits or authorisations are required, unless otherwise required under Union or national law.

Member States shall ensure that applicants have easy access to information on and procedures for the settlement of disputes concerning the permit-granting process including, where applicable, alternative dispute resolution mechanisms, if such procedures are provided for by national law.

Member States shall ensure that the single point of contact and all competent authorities responsible for any step along the permit-granting processes, including all procedural steps, have a sufficient number of qualified staff and sufficient financial, technical and technological resources necessary, including, where appropriate, for up- skilling and re-skilling, for the effective performance of their tasks under this Regulation.

The Platform referred to in Articles 38 and 39 shall periodically discuss the implementation of this Section and Articles 15 and 16 and share best-practices for organising single points of contact.

The authorities involved in the permit-granting process and other authorities concerned shall specify and make available to the single point of contact concerned, the requirements and extent of information requested of a project promoter before the permit-granting process commences.

The permit-granting process for net-zero technology manufacturing projects shall not exceed any of the following time limits:

The permit-granting process for net-zero technology manufacturing projects for which a yearly manufacturing capacity is not measured in GW, shall not exceed a time limit of 18 months.

Where energy-intensive industry decarbonisation projects, including when recognised as strategic projects, require the construction of several facilities or units in one site, the project promoter and the single point of contact may agree on splitting the project into several smaller projects for the purposes of complying with the applicable time limits.

Where an environmental impact assessment is required pursuant to Directive 2011/92/EU, the steps of the assessment referred to in Article 1(2), point (g)(i), of that Directive shall not be included in the duration of permit-granting process referred to in paragraphs 1 and 2 of this Article.

Where the consultation pursuant to Article 1(2), point (g)(ii), of Directive 2011/92/EU results in the need to supplement the environmental impact assessment report with additional information, the single point of contact may give the project promoter the opportunity to submit additional information. In that case, the single point of contact shall notify the project promoter of the date when the additional information is due, which shall be no less than 30 days from the date of the notification. The period between the deadline for providing additional information and the submission of that information shall not be counted towards the duration of the permit-granting process referred to in paragraphs 1 and 2 of this Article.

In exceptional cases, where the nature, complexity, location or size of the proposed net-zero technology manufacturing project or net-zero strategic project so requires, a Member State may once extend the time limits referred to in paragraphs 1, 2 and 7 of this Article and in Article 16(1) and (2) by a maximum of 3 months before their expiry and on a case-by-case basis.

Where a Member State considers that the proposed net-zero technology manufacturing project or net-zero strategic project raises exceptional risks for the health and safety of workers or of the general population, and where additional time is necessary to establish that measures to address identifiable risks have been put in place, it may extend the time limits referred to in paragraphs 1 and 2 of this Article and in Article 16 (1) and (2) by 6 months, within 6 months of the start of the permit-granting process.

In the application of paragraph 6 or 7, the single point of contact shall inform the project promoter in writing of the reasons for the extension and of the date when the comprehensive decision is expected.

The single point of contact referred to in Article 6(1) of this Regulation shall notify the project promoter of the date when the environmental impact assessment report referred in Article 5(1) of Directive 2011/92/EU is due, taking into account the organisation of the permit-granting process in the relevant Member State and the need to allow sufficient time to assess the report. The period between the deadline for providing the environmental impact report and the submission of that report shall not be counted towards the duration of the permit-granting process referred to in paragraphs 1 and 2 of this Article.

No later than 45 days from the receipt of the permit-granting application, the single point of contact concerned shall acknowledge that the application is complete or, if the project promoter has not sent all the information required to process the application, request the project promoter to submit a complete application without undue delay, specifying which information is missing. In the event that the submitted application is deemed to be incomplete for a second time, the single point of contact may, within 30 days of the second submission, make a second request for information. The single point of contact shall not request information in areas not covered in the first request for additional information and shall be entitled only to request further evidence to complete the identified missing information. The date of the acknowledgement of the completeness of the application from the single point of contact referred to in Article 6(1) shall serve as the start of the permit-granting process for that particular application.

No later than two months from the date of the receipt of the application, the single point of contact shall draw up, in close cooperation with other authorities concerned, a detailed schedule for the permit-granting process. That schedule shall start from the moment when the single point of contact acknowledges the completeness of the application. The schedule shall be published by the single point of contact on a free access website.

The time limits set in this Article and in Article 16 shall be without prejudice to obligations arising from Union and international law, and without prejudice to administrative appeal procedures and judicial remedies before a court or tribunal.

The time limits set in this Article and in Article 16 for any of the permit-granting processes shall be without prejudice to any shorter time limits set by Member States.

Where an environmental impact assessment is required pursuant to Articles 5 to 9 of Directive 2011/92/EU, the project promoter concerned may request, before submitting the application, an opinion from the single point of contact on the scope and level of detail of the information to be included in the environmental impact assessment report pursuant to Article 5(1) of that Directive. The single point of contact shall ensure that the opinion is issued as soon as possible and no later than 45 days from the date on which the project promoter submitted its request for an opinion.

Where the obligation to assess the effects on the environment arises simultaneously from any two or more of Directive 2000/60/EC, Directive 2001/42/EC of the European Parliament and of the Council ([^E0003]), Directive 2008/98/EC, Directive 2009/147/EC, Directive 2010/75/EU, Directive 2011/92/EU, Directive 2012/18/EU or Directive 92/43/EEC, Member States shall ensure that a coordinated or joint procedures fulfilling all the requirements of those Union legislative acts are applied.

Member States shall ensure that the competent authorities issue the reasoned conclusion referred to in Article 1(2), point (g)(iv), of Directive 2011/92/EU on the environmental impact assessment within 90 days of receiving all necessary information pursuant to Articles 5, 6 and 7 of that Directive and after completing the consultations referred to in Articles 6 and 7 of that Directive.

In exceptional cases, where the nature, complexity, location or size of the proposed project so requires, Member States may extend the time limit referred to in paragraph 3 by a maximum of 20 days, before its expiry and on a case-by-case basis. In that event, the single point of contact concerned shall inform the project promoter in writing of the reasons justifying the extension and of the deadline for its reasoned conclusion.

The timeframes for consulting the public concerned as referred to in Article 1(2), point (e), of Directive 2011/92/EU and the authorities referred to in Article 6(1) of that Directive on the environmental report referred to in Article 5(1) of that Directive shall not be longer than 85 days and, in accordance with article 6(7) of that Directive, not shorter than 30 days. In the cases falling under the second sub-paragraph of Article 6(4) of that Directive, that period shall be extended to a maximum of 90 days on a case-by-case basis.

Member States shall ensure that their competent authorities and other authorities designated pursuant to Article 6(1) of Directive 2011/92/EU have a sufficient number of qualified staff and sufficient financial, technical and technological resources necessary to fulfil their obligations under this Article.

National, regional and local authorities responsible for preparing plans, including zoning, spatial plans and land use plans, shall consider including in such plans, where appropriate, provisions for the development of net-zero technology manufacturing projects, including net-zero strategic projects and, where appropriate, net-zero industry acceleration valleys, as well as the necessary infrastructure. Where considering to include such provisions, priority shall be given to artificial and built surfaces, industrial sites and brownfield sites. To facilitate the development of net-zero technology manufacturing projects, Member States shall ensure that all relevant spatial planning data is available online in accordance with Article 7.

Where plans include provisions for the development of net-zero technology manufacturing projects, including net-zero strategic projects, and their required infrastructure, and are subject to an assessment pursuant to Directive 2001/42/EC and pursuant to Article 6 of Directive 92/43/EEC, those assessments shall be combined. Where applicable, the combined assessment shall also address the impact on potentially affected water bodies referred to in Directive 2000/60/EC. Where relevant Member States are required to assess the impacts of existing and future activities on the marine environment, including land-sea interactions, as referred to in Article 4 of Directive 2014/89/EU of the European Parliament and of the Council ([^E0004]), those impacts shall also be covered in the combined assessment. The fact that assessments are combined pursuant to this paragraph shall not affect their content or quality. The combined assessment shall be carried out in a manner that does not lead to a prolongation of the time limits set out in this Regulation.

This Regulation is without prejudice to the obligations under the United Nations Economic Commission for Europe (UNECE) Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters, signed at Aarhus on 25 June 1998, and under the UNECE Convention on environmental impact assessment in a transboundary context, signed at Espoo on 25 February 1991 and its Protocol on Strategic Environmental Assessment, signed in Kyiv on 21 May 2003.

All decisions adopted pursuant to this Section and Articles 8, 15, 16 and 28 shall be made publicly available in an easily understandable manner and all decisions concerning a net-zero technology manufacturing project or a net-zero strategic project shall be available on the same website.

Member States shall recognise as net-zero strategic projects net-zero technology manufacturing projects located in the Union that contribute to achieving the objectives set out in Article 1, including contributing to the Union’s climate or energy targets, and fulfil at least one of the following criteria:

By 1 March 2025, the Commission shall adopt an implementing act setting out guidelines ensuring uniform conditions for the implementation of the criteria laid down in this Article. Those guidelines shall at least include specific guidance on the criteria to be used to assess:

Member States shall recognise as net-zero strategic projects CO2 storage projects that meet all of the following criteria:

Net-zero technology manufacturing projects corresponding to a net-zero technology, located in ‘less developed and transition regions’ and Just Transition Fund territories and eligible for funding under cohesion policy rules shall be, after the award procedure has been completed, recognised by Member States as net-zero strategic projects under Article 14(3) upon the written request of the project promoter without the project promoter having to submit a formal application under Article 14(2).

A net-zero technology manufacturing project located in the Union that contributes to achieving the objectives set out in Article 1(1) and that benefits from the ETS Innovation Fund or is part of Important Projects of Common European Interest, of European Hydrogen Valleys or of the Hydrogen Bank, where the funds support investment in manufacturing capacities, shall be recognised by Member States as a net-zero strategic project under Article 14(3) upon the written request of the project promoter without the project promoter having to submit a formal application under Article 14(2).

Where a net-zero strategic project contributes to a value chain for a technology that a Member State does not accept as part of the general structure of its energy supply, that Member State may refuse to recognise that project as a strategic project. If there are net-zero technologies for which a Member State intends not to recognise projects as strategic projects, that Member State shall communicate that as soon as possible and publicly.

Applications for recognition of net-zero technology manufacturing projects as net-zero strategic projects shall be submitted by the project promoter to the relevant Member State.

The application referred to in paragraph 1 shall contain the following:

Member States shall assess the application referred to in paragraph 1 through a fair and transparent process within one month of the receipt of the complete application. If the project promoter has not sent all the relevant and complete information required to process an application, the Member State shall request, once only, that the project promoter submit complementary information without undue delay, in order to obtain a complete application. The date of the acknowledgement of the completeness of the submission shall serve as the start of the assessment process. The decision resulting from this process shall be reasoned and shall be communicated to the project promoter and to the Platform referred to in Articles 38 and 39.

If there is no decision within the timeframe referred to in paragraph 3, the project promoter may notify the Member State and request without undue delay that the Member State provide the project promoter with an updated deadline, which shall not be later than 30 days from the original deadline.

The Commission may provide its opinion on the approved net-zero strategic projects. Where a Member State rejects the application, the applicant shall have the right to submit the application to the Commission, which shall assess the application within 20 working days. The Commission’s assessment is without prejudice to the Member State’s decision.

Where the Commission, following its assessment in accordance with paragraph 5 of this Article, confirms the rejection of the application by the Member State, it shall notify the applicant of its conclusion in the form of a letter. Where the Commission differs in its assessment from the Member State, the Platform referred to in Articles 38 and 39 shall discuss the project in question.

Where the Commission or a Member State finds that a net-zero strategic project has undergone substantial changes or that it no longer fulfils the criteria laid down in Article 13, or where its recognition as a net-zero strategic project was based on an application containing incorrect information, it shall inform the project promoter concerned. After hearing the project promoter, the Member State may repeal the decision recognising a project as a net-zero strategic project.

A project which is no longer recognised as a net-zero strategic project shall lose all rights connected to that status under this Regulation.

The Commission shall set up and maintain an openly available registry of net-zero strategic projects.

Project promoters and all authorities concerned shall ensure that for net-zero strategic projects the relevant processes are treated in the most rapid way possible in accordance with Union and national law.

Without prejudice to obligations provided for in Union law, where a project is recognised as a net-zero strategic project, Member States shall grant that net-zero strategic project the status of the highest national significance possible, where such a status exists in national law, and that net-zero strategic project shall be treated accordingly in the permit-granting processes, including those relating to environmental assessments and, where data is available, to spatial planning.

Net-zero strategic projects shall be considered to contribute to the security of supply of net-zero technologies in the Union and, therefore, to be in the public interest. With regard to the environmental impacts or obligations referred to in Article 4(7) of Directive 2000/60/EC, Article 9(1), point (a), of Directive 2009/147/EC, Articles 6(4) and 16(1) of Directive 92/43/EEC and in Union legislative acts on nature restoration, net-zero strategic projects in the Union shall be considered to be of public interest and may be considered to have an overriding public interest and to serve the interests of public health and safety provided that all the conditions set out in those acts are fulfilled.

All dispute resolution procedures, litigation, appeals and judicial remedies related to net-zero strategic projects before any national courts, tribunals or panels, including with regard to mediation or arbitration, where they exist in national law, shall be treated as urgent if and to the extent to which national law concerning permit-granting processes provides for such urgency procedures and provided that the usually applicable rights of defence of individuals or of local communities are respected. Project promoters of net-zero strategic projects shall participate in such urgency procedures, where applicable.

The permit-granting process for net-zero strategic projects shall not exceed:

For net-zero strategic projects for which a yearly manufacturing capacity is not measured in GW, the permit-granting process shall not exceed 12 months.

Where an environmental impact assessment is required pursuant to Directive 2011/92/EU, the step of the assessment referred to in Article 1(2), point (g)(i), of that Directive shall not be included in the duration for the permit-granting process referred to in paragraphs 1 and 2 of this Article.

Member States may decide to designate net-zero Acceleration Valleys (the ‘Valleys’) as specific areas to accelerate net-zero industrial activities, in particular to accelerate the implementation of net-zero technology manufacturing projects, including net-zero strategic projects or clusters thereof, or to test innovative net-zero technologies. The objectives of the Valleys shall be to create clusters of net-zero industrial activity and to further streamline administrative procedures.

The decision referred to in paragraph 1 shall:

A decision by a Member State to designate a Valley shall be accompanied by a plan setting out concrete national measures to increase its attractiveness as a location for manufacturing activities, including at least the following economic and administrative support schemes to:

Public investments with the aim of setting up Valleys, equipping them with appropriate infrastructure, converting brownfield sites and developing the adequacy of the local skills pool may benefit, where appropriate, from the maximum co-financing rates under Regulations (EU) 2021/1058, (EU) 2021/1056 and (EU) 2021/1057.

Sections II and III shall apply to individual projects in Valleys. A single point of contact, shall be designated for each Valley.

With a view to avoiding duplication of assessments, when issuing the opinion referred to in Article 10(1), the competent authority shall take into account the results of the assessments carried out pursuant to Article 17(2), point (c).

The single point of contact shall make available to project promoters templates indicating the specific permits needed for projects in Valleys. Those templates shall include information on any features of the project and measures envisaged to avoid or prevent significant adverse effects on the environment in order to ensure that only projects with significant environmental impacts are subject to an assessment pursuant to Directive 2011/92/EU and to facilitate the determination by a competent authority as to whether the project is to be made subject to an assessment pursuant to Article 4(2) to (6) of that Directive.

Net-zero technology manufacturing projects in Valleys shall be considered to contribute to the security of supply of net-zero technologies in the Union and, therefore, to be in the public interest. With regard to the environmental impacts or obligations referred to in Article 4(7) of Directive 2000/60/EC, Article 9(1), point (a), of Directive 2009/147/EC, Articles 6(4) and 16(1) of Directive 92/43/EEC and in Union legislative acts on nature restoration, net-zero technology manufacturing projects in Valleys in the Union shall be considered to be of public interest and may be considered to have an overriding public interest and to serve the interests of public health and safety provided that all the conditions set out in those acts are fulfilled.

The Platform as established in Article 38 shall examine the bottlenecks and Union-wide financial needs of net-zero strategic projects, advise on ways of coordinating Union and national financing with regard to those financial needs, and collect potential best practices, inter alia, for the purpose of developing Union cross-border supply chains, in particular on the basis of regular exchanges and recommendations of the net-zero Industry Group and with the relevant industrial alliances.

The Platform shall, at the request of the net-zero strategic project promoter, discuss and advise on how the financing of the project can be completed, taking into account the funding already secured and considering at least the following elements:

By 30 September 2024 and every two years thereafter, the Platform shall provide recommendations to the Commission on ways to ensure sufficient funding, including through the Union budget, to pursue the objectives of this Regulation.

Member States and, where appropriate, the Commission shall undertake activities to accelerate public investments in net-zero technology manufacturing projects. Such activities may, without prejudice to Articles 107 and 108 TFEU, include advising on and coordinating support for net-zero technology manufacturing projects which are facing difficulties in accessing finance.

An annual injection capacity of at least 50 million tonnes of CO2 shall be achieved by 2030 in storage sites, meaning geological storage sites permitted under Directive 2009/31/EC including depleted oil and gas fields and saline aquifers, located in the territory of the Union, its exclusive economic zones or on its continental shelf within the meaning of the United Nations Convention on the Law of the Sea and which are not combined with Enhanced Hydrocarbon Recovery.

All storage sites shall be designed to operate for a minimum of five years and shall respect the principles of fair and open access provided in a transparent and non-discriminatory manner, as defined in Directive 2009/31/EC.

By 30 June 2027 and every two years thereafter, the Commission shall submit a report to the European Parliament and to the Council on the progress achieved towards meeting the Union annual injection capacity target, including the state of the market related to the injection capacity. The reports shall include an overview of the geographical spread of storage sites across the Union. The first report shall assess whether it is considered to be necessary to introduce a Union-wide objective for 2040 or earlier if needed.

The reports referred to in paragraph 3 shall include a CO2 storage and injection capacity assessment, using, in particular, the information collected pursuant to Article 21(2) and Article 23(6). The reports shall:

By 31 December 2028, the Commission may submit, on the basis of the assessment referred to in paragraph 3, a legislative proposal to introduce a new Union-level objective for CO2 injection capacity by 2040 or earlier if needed. If the Commission decides not to propose a legislative proposal to introduce that objective, it shall provide the European Parliament and the Council with reasons for its decision.

Within three months of the signature by the Union of an international agreement relating to this Chapter, the Commission shall submit a report assessing the implications of the international agreement, in particular with regard to promoting and safeguarding the Union’s environmental standards, climate objectives and the potential need for additional Union policies and measures in view of the provisions of that international agreement. On the basis of that report, the Commission shall, as appropriate, submit a legislative proposal to the European Parliament and to the Council amending this Regulation pursuant to paragraph 1.

The Commission shall publish guidelines indicating the appropriate levels of CO2 purity and of trace elements within the CO2 stream for CO2 storage projects contributing to the Union's injection capacity objective.

By 30 December 2024, Member States shall:

By 30 December 2024 and each year thereafter, each Member State shall submit to the Commission a report, which shall be made publicly available, and shall be without prejudice to requirements regarding the protection of confidential information, describing:

Should the report referred to in paragraph 2 show that no CO2 storage projects are in progress on their territory, Member States shall report on plans to facilitate the decarbonisation of industrial sectors. This shall, if applicable, include the cross-border transport of CO2 to storage sites located in other Member States as well as CO2 utilisation projects.

In order to facilitate the achievement of the objective set out in Article 20, the Union and its Member States, where appropriate in collaboration with relevant companies, shall make all reasonable efforts to develop the necessary CO2 transport infrastructure, including cross-border infrastructure, while taking into account the economic and environmental benefits of proximity of capture and storage sites.

Member States shall take the necessary measures to enable access to CO2 transport networks and to storage sites for the purposes of geological storage of the produced and captured CO2 as far as it is economically feasible to do so or when a potential customer is willing to pay, in accordance with Article 21 of Directive 2009/31/EC.

Where CO2 is captured and transported in one Member State and transported and stored in other Member States, Member States shall coordinate the measures taken by them pursuant to paragraph 2. The Commission may facilitate such coordination through the establishment of CCS Regional Groupings when there is a joint request from the Member States involved.

Each entity holding an authorisation as defined in Article 1, point 3, of Directive 94/22/EC shall be subject to an individual contribution to the Union-wide target for available CO2 injection capacity set in Article 20 of this Regulation. Those individual contributions shall be calculated pro-rata on the basis of each entity’s share in the Union’s crude oil and natural gas production from 1 January 2020 to 31 December 2023 and shall consist of CO2 injection capacity in a storage site permitted in accordance with Directive 2009/31/EC and available to the market by 2030. Entities with crude oil and natural gas production below the threshold set in accordance with a delegated act pursuant to paragraph 12 of this Article, shall be excluded from this calculation and shall not be subject to a contribution.

By 30 September 2024, Member States shall identify and report to the Commission the entities referred to in paragraph 1 and their volumes in crude oil and natural gas production from 1 January 2020 to 31 December 2023.

Following the receipt of the reports submitted pursuant to Article 21(2), the Commission, after consulting Member States and interested parties, shall specify the contributions to the Union CO2 injection capacity objective by 2030 from entities referred to in paragraph 1 of this Article.

By 30 June 2025, the entities referred to in paragraph 1 shall submit to the Commission a plan specifying in detail how they intend to meet their contribution to Union CO2 injection capacity objective by 2030. Those plans shall:

In order to meet their targeted volumes of available injection capacity, the entities referred to in paragraph 1 may:

By 30 June 2026 and every year thereafter, the entities referred to in paragraph 1 shall submit a report to the Commission detailing their progress towards meeting their contribution. The Commission shall make those reports public.

By way of derogation from paragraph 1, a Member State may request the Commission to exempt the entities referred to in that paragraph from individual contributions in relation to the production activities that they have carried out on the territory of that Member State from 1 January 2020 to 31 December 2023, provided that:

Provided that the conditions laid down in paragraph 7 are fulfilled, the Commission shall adopt a decision exempting the entities concerned from their individual contribution in relation to the production activities they have carried out on the territory of the Member State submitting the request.

Entities exempted pursuant to paragraph 8 may enter into agreements in accordance with paragraph 5, points (b) and (c), only in respect of any injection capacity exceeding the individual contribution from which they are exempted and the sum of the individual contributions that have been exempted.

One year after the exempting decision and every year thereafter, the Member State shall submit a report to the Commission specifying in detail the progress of the entities exempted pursuant to paragraph 8 towards meeting their contribution to the Union-wide target for available CO2 injection capacity set in Article 20. The Commission shall make those reports public.

By 31 December 2028, the Commission shall, on the basis of the reports referred to in Article 42(1), point (d), and Article 42(7), assess the relationship between the demand for injection capacity from CO2 capture projects and the main infrastructure needed for the transport of CO2 in progress or planned to be operational by 2030 and the sum of the individual contributions of the entities referred to in paragraph 1 of this Article in relation to the production activities on the territory of a given Member State. In the case of a substantial imbalance, the Member State concerned may exceptionally ask the Commission for a derogation regarding the date by which the individual contributions are to be fulfilled.

The Commission is empowered to adopt delegated acts in accordance with Article 44 to supplement this Regulation with regard to:

No later than 30 June 2026, Member States shall lay down penalties by means of administrative procedures, legal proceedings, or both, applicable to infringements by entities referred to in paragraph 1 with regard to their obligations under paragraph 3. Those penalties shall be effective, proportionate and dissuasive.

By 30 June 2027, the Commission shall carry out an assessment of the functioning of the market for captured CO2. That assessment shall be based on a clear methodology, take into account the annual reports referred to in Article 21(2) and, in particular, consider whether:

On the basis of the assessment referred to in paragraph 1, the Commission may propose a legislative act to regulate the market in order to address any shortcomings identified, in particular with regard to hard-to-abate emissions.

For public procurement procedures falling within the scope of Directive 2014/23/EU, 2014/24/EU or 2014/25/EU, where contracts have net-zero technologies listed in Article 4(1), points (a) to (k), of this Regulation as part of their subject matter, or in the case of works contracts and works concessions including said technology, contracting authorities and contracting entities shall apply minimum mandatory requirements regarding environmental sustainability established in the implementing act referred to in paragraph 5 of this Article.

Paragraph 1 shall not preclude contracting authorities or contracting entities from using additional minimum requirements or award criteria in relation to environmental sustainability.

Notwithstanding paragraph 1, contracting authorities and contracting entities shall apply at least one of the following conditions, requirements or contractual obligations for the works contracts and works concessions referred to in paragraph 1:

The minimum mandatory requirements referred to in paragraph 1, where applicable, shall take the form, where appropriate, of:

By 30 March 2025, the Commission shall adopt an implementing act specifying minimum requirements on environmental sustainability for the public procurement procedures referred to in paragraph 1.

A Member State shall not discriminate against, or subject to unjustified different treatment, a provider or net-zero products from another Member State.

The tender’s resilience contribution shall be taken into account in the case of public procurement procedures falling within the scope of Directives 2014/23/EU, 2014/24/EU or 2014/25/EU where such contracts have net-zero technologies listed in Article 4(1), points (a) to (k), of this Regulation as part of their subject matter, or in the case of the works contracts and works concessions referred to in paragraph 1, including said technology, and in the case of contracts awarded on the basis of a framework agreement where the estimated value of those agreements is equal to or above the values set out in Article 8 of Directive 2014/23/EU, Article 4 of Directive 2014/24/EU and Article 15 of Directive 2014/25/EU, in accordance with this paragraph.