Where the Commission has found a third country supplies more than 50% of a net-zero technology in the Union, hold supply from each such country below 50% of contract value -- for the technology and for its main components -- prove it on request, and pay at least 10% of the contract value if the cap is breached.
Tenderers and successful contractors supplying net-zero technologies to public buyers must comply, and this is law in force.
Why it matters
This is law in force, not a proposal.
- It is Art. 25(7), second subparagraph, in the Net-Zero Industry Act. as of 2026-08-18
- The act gives its timing as: Applies from 29 June 2024 (Art. 49(2)). as of 2026-08-18
- It names 4 industries by name: Batteries and solar, Clean tech, Carbon capture and storage and Power. as of 2026-08-18
- Compliance is checked by self-declaration, per contract. as of 2026-08-18
The rule
a Commission determination under Art. 29(2) that one third country exceeds 50% of Union supply, or has gained 10 percentage points over two years and reaches 40%
Where the Commission has found a third country supplies more than 50% of a net-zero technology in the Union, hold supply from each such country below 50% of contract value -- for the technology and for its main components -- prove it on request, and pay at least 10% of the contract value if the cap is breached.
Who is affected
Burden drivers
Source text
an obligation for the duration of the contract not to supply more than 50 % of the value of the specific net-zero technology referred to in this paragraph from each individual third country as determined by the Commission; (b) an obligation for the duration of the contract that no more than 50 % of the value of the main specific components of the specific net-zero technology referred to in this paragraph is supplied or provided directly by the successful tenderer or by a subcontractor from each individual third country as determined by the Commission; (c) an obligation to provide contracting authorities and contracting entities, upon their request, adequate evidence relating to point (a) or (b), at the latest upon completion of the execution of the contract; (d) an obligation to pay a proportionate charge, in the event of non-observance of the conditions referred in point (a) or (b), of at least 10 % of the value of the specific net-zero technologies of the contract referred to in this paragraph.
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