Previous Year Question
Consider the following statements:
Statement I: The European Parliament approved Net-Zero Industry Act recently.
Statement II: The European Union intends to achieve carbon neutrality by 2040 and therefore aims to develop all of its own clean technology by that time.
Which one of the following is correct in respect of the above statements?
Both Statement I and Statement II are correct and Statement II explains Statement I.
Both Statement I and Statement II are correct, but Statement II does not explain Statement I.
Statement I is correct, but Statement II is incorrect.
Statement I is incorrect, but Statement II is correct.
Correct Answer: C
Detailed Solution
Statement I is correct: The European Parliament approved the Net-Zero Industry Act to increase the manufacturing capacity of net-zero technologies in Europe.
The Act aims to reduce the European Union’s dependence on imports of clean-energy technologies and make domestic manufacturing competitive.
It covers sectors such as solar photovoltaic and solar thermal technologies, wind energy, batteries and energy storage, heat pumps, electrolysers and grid technologies.
Carbon capture and storage, biogas, biomethane and other low-carbon industrial technologies are also associated with its wider scope.
The Act emphasises simplifying and accelerating the permitting process for net-zero technology projects.
It also aims to strengthen skills, innovation, public procurement and industrial supply chains associated with clean technology.
Under the Net-Zero Industry Act, the European Union set a benchmark to develop manufacturing capacity equivalent to at least 40% of its annual net-zero technology deployment needs by 2030.
It also includes an objective of increasing the European Union’s share in global production of the relevant technologies by 2040.
Statement II is incorrect: The European Union’s legally established climate-neutrality target is 2050, not 2040.
For 2030, the European Union has established a target of reducing net greenhouse gas emissions by at least 55% compared with 1990 levels.
A deep intermediate greenhouse gas emission-reduction target has been proposed for 2040; it is not treated as the final year for complete carbon neutrality.
The claim in Statement II that the European Union intends to develop all its clean technology by itself by 2040 is also incorrect.
The Act seeks to increase domestic manufacturing capacity and supply-chain security for strategic net-zero technologies, not complete self-sufficiency.
The European Union may continue to use international trade, partnerships and global clean-technology supply chains.