The Net-Zero Industry Act (NZIA) seeks to increase demand for sustainable and resilient net-zero technologies and products by using three demand-side policy tools:
- Public procurement
- Auctions for the deployment of renewable energy
- Public schemes that incentivise the purchase of net-zero technology final products
As well as supporting manufacturing capacity in the EU, the NZIA also aims to create a market for net-zero technologies by requiring public authorities and Member States to consider factors such as sustainability, resilience of supply chains, innovation and energy system integration, when awarding contracts, conducting renewable energy auctions, or designing support schemes.
Public procurement
NZIA criteria intended to favour products with a stronger sustainability and resilience contribution
Article 25 NZIA sets out the provisions in relation to sustainability and resilience contribution in public procurement procedures.
Information on its application is included in the Implementing Act 2026/718 and Guidance C/2026/4623.
Related link: Procurement related sectoral legislation - Office of Public Procurement (OGP)
Auctions
NZIA non-price criteria for renewable energy deployment, allowing sustainability and resilience considerations to influence outcomes
Article 26 NZIA applies to auctions to deploy renewable energy sources.
Information on its application is included in the Implementing Act 2025/1176 and Guidance C/2026/4113.
Under the Department of Climate, Energy and the Environment, the Renewable Electricity Support Scheme 6 (RESS 6) will be the first RESS auction to implement the non-price criteria requirements stipulated under Article 26.
Public schemes
NZIA measures to incentivise the purchase of net-zero technology products with high sustainability and resilience characteristics: including incentives for households or companies offered through public schemes, such as grants, rebates, soft loans, tax incentives, or similar support mechanisms
Article 28 NZIA sets out the provisions in relation to other forms of public intervention.
Information on its application is included in the Implementing Act 2025/1178, Commission Communication 2025/3236 and Guidance C/2026/123.