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Keeping Manufacturing in Europe

Recent geopolitical tensions have exacerbated the need for energy security and resilience of the European Union. Instead of depending on volatile external energy suppliers, it is crucial for Europe to rely on local and sustainable supply chains which can provide European citizens with a safe and affordable energy source while strengthening local economies and boosting European competitiveness.

EU-made net-zero technologies must become the backbone of Europe’s energy supply

Net-Zero Industry Act

In June 2024, the Net-Zero Industry Act (NZIA) came into force. This new regulation aims to accelerate Europe’s transition to climate neutrality by strengthening the European manufacturing capacity of net-zero technologies. It recognises solar thermal (and thermal storage) as one of the strategic net-zero technologies that make a significant contribution to decarbonisation by 2030 and that are commercially available.

Solar thermal: An EU based industry

The solar thermal sector has a strong European manufacturing base which currently meets 90% of the domestic demand and exports worldwide. With proper incentives in place, the solar thermal sector can triple its EU-based manufacturing by 2030. Furthermore, it perfectly meets the intertwined roles of decarbonisation and competitiveness as laid out in the 2024 Draghi report on the future of European competitiveness. However, the European solar thermal industry is mostly composed by SMEs which, despite being the heart of Europe’s industrial fabric, are often unable to make themselves heard in European and national policy making processes or to benefit proportionally from EU financial packages.

Our policy demand:

We call on European policymakers to provide appropriate measures supporting European SMEs which produce net-zero technologies like solar heat. These can range from direct investment support to new mechanisms providing technical and logistical support for new investments, innovation programmes and export activities.

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