The European Parliament has adopted the net-zero industry Act, the primary aim of which is to make the EU internal market fit for industrial decarbonisation. The Act supports manufacturing of key technologies which are needed for the EU’s climate and energy objectives. Once implemented, it will mean faster permitting procedures and the establishment of net-zero industry valleys, as well as new criteria for public procurement procedures, among other matters. The next and final step in the law-making procedure is the formal rubber-stamping of the Act by the EU Council.

On 30 April 2024, for the first time since the entry into force of Regulation (EU) 2023/1542 concerning batteries and waste batteries (the EUBR), the European Commission (the Commission) has published on its Public Consultations and Feedback (‘Have your say’) website the draft text of a related Commission Delegated Regulation (CDR). The draft text supplements the EUBR by establishing the methodology for the calculation and verification of the carbon footprint of electric vehicle batteries and its accompanying Annex.

The European Parliament has formally endorsed a new Regulation establishing a framework for setting eco-design requirements for sustainable products. This new law, approved on 23 April 2024, seeks to promote the reusability, repairability, upgradability, and recyclability of goods sold to EU customers.

The most recent legislative development in the framework of the ‘Fit for 55’ package (part of the European Green Deal) is the revised Energy Performance of Buildings Directive, which has recently received formal approval from the Council of the European Union, the representative of the EU Member States. This Directive sets ambitious emission reduction targets for residential and non-residential buildings in order to reach the overall goal of making the EU’s housing stock net-zero by 2050.

Hong Kong traders should be informed that EU Directive 2024/825 empowering consumers for the green transition has entered into force, and will become applicable in just over two years from now, i.e., on 27 September 2026. The Directive amends the existing legislation on unfair commercial practices, by protecting consumers against misleading environmental claims and by ensuring that they are provided with better information.

On 9 April 2024, the European Commission (“Commission”) announced that it is initiating an inquiry into Chinese wind turbine suppliers under the EU’s Foreign Subsidies Regulation. This move comes in response to what are perceived by the Commission as being overly aggressive tactics employed by Chinese manufacturers, including the offering of cheap turbines and favourable financing terms, which have been thought to distort market dynamics, undercutting European competitors.

The European Commission (the Commission) has opened two in-depth investigations into public procurement bids made by economic operators from the Chinese mainland for a new solar photovoltaic park in Romania. This represents the second and third use of the new tools made available under the Foreign Subsidies Regulation (FSR). In applying this new legislative framework, the EU is seeking to protect the key sector of solar panels from the potentially market distortive effect of foreign subsidies, but the consecutive investigation of economic operators from the Chinese mainland has received some negative backlash.

Environmentally friendly construction, travel and design topped the agenda at the inaugural edition of China Trade Week Saudi Arabia.

While the prospects for residential US solar installations are somewhat clouded at present, new legislation could brighten them considerably.

With borrowing to install solar systems currently prohibitively expensive, the industry is having to find new ways to woo consumers.