NZIA regulatory sandbox exchange forum support

Expected Outcome:

The framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem (Net-Zero Industry Act) was adopted^[1] in 2024, establishing a requirement for Member States to set up net-zero regulatory sandboxes^[2] in order to promote innovation and regulatory learning in the field of net-zero technologies. This instrument allows for testing of innovative net-zero technologies in real-world environment for a limited amount of time and with a view of potential scaling up and further wider deployment. Those innovative technologies could eventually be essential to achieve the Union’s climate neutrality objective and to ensure the security of supply and resilience of the Union’s energy system. Regulatory sandboxes contribute to better regulation^[3] and to the New European Innovation Agenda’s^[4] flagship on experimentation spaces.

According to the Regulation, Member States designate one or more contact points for setting up net zero regulatory sandboxes and the net zero Europe Platform is assigned to coordinate Member States’ activities and cooperation on net zero regulatory sandboxes. For the wider and accelerated deployment of innovative net-zero technologies it is crucial that the assigned contact points and competent authorities coordinate their activities, exchange information on lessons learnt and good practices and cooperate, including possible cross-border implementation.

Project results are expected to contribute to all of the following outcomes:

• Regulatory learning of how regulation supports or hampers the enhanced use of innovative net-zero technologies;
• Net zero regulatory sandboxes schemes are well established, streamlined and designed;
• The net zero Europe Platform actively and smoothly exchanges information among Member States (contact points and competent authorities) and stakeholders thanks to the support of the project.

Scope:

Covering all of the following points proposals are expected to:

1. Provide support to the goals of the net zero Europe Platform related to net zero regulatory sandboxes and to reach out to stakeholders involved in net zero regulatory sandboxes across Member States (including assigned contact points, competent authorities, potential participating entities, including SMEs and start-ups, social partners, consumers and other stakeholders). They should support exchanging best practices, lessons learnt and enhancing cooperation between Member States, as well as the coordination with other similar initiatives.
2. Prepare comparative analyses and assessments of the national legislative frameworks for net zero regulatory sandboxes and other regulatory sandboxes relevant for innovative net zero technologies in line with the Regulation on strengthening Europe’s net-zero technology manufacturing ecosystem:
   • on regulatory barriers for innovative net zero technologies;
   • on national net-zero regulatory sandbox schemes (including application procedures);
   • on concrete trials;
   • on impacts and regulatory learning;
   • on lessons learnt
   • and explore other forms of regulatory experimentation for net zero technologies in the energy sector.
3. Create and regularly update a publicly available free repository on regulatory sandbox schemes and concrete projects for net zero technologies in the Union.

Proposals actively include the contribution of national and regional authorities, companies (industry and SMEs), social partners, research and civil society organisations, consumers’ and users’ associations, universities and European associations representing relevant sectors and any other stakeholders related to net zero regulatory sandboxes. To maximise their impact and widen participation, they are encouraged to develop and implement robust outreach approaches and societal engagement actions to span across the EU.

Proposals are expected to include appropriate means to particularly take into account the experience and possibilities of SMEs and start-ups as potential participants in regulatory sandbox schemes fostering innovation and regulatory learning.

Furthermore, the proposals should develop a dissemination and exploitation strategy and implement dissemination and networking activities.

The project is expected to contribute to the Commission’s reporting on the results of the implementation of net-zero regulatory sandboxes (including good practices, lessons learnt and recommendations on their setup and, on the application, within the net-zero regulatory sandbox of Union law in a manner adapted for the purposes of the net-zero regulatory sandbox).

Proposals submitted under this topic are expected to include actions designed to ensure the accessibility and reusability of data produced during the project. The project should include a finance and sustainability plan for future continuation beyond the lifetime of the project.

Projects should be designed for a duration of three years.

[1] Regulation (EU) 2024/1735 of the European Parliament and of the Council on establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724

[2] It means a scheme that enables undertakings to test innovative net-zero technologies and other innovative technologies in a controlled real-world environment, under a specific plan, developed and monitored by a competent authority

[3] Tool 69 of better regulation toolbox of the European Commission.

[4] COM(2022) 332 of 5.7.2022