EU Net-Zero Industry Act Guidance Clarifies Article 25 Procurement Evidence

Regulation (EU) 2024/1735 remains the binding law. The guidance says it neither adds to nor reduces legal rights and obligations, but it gives practical answers for batteries, solar photovoltaic systems, wind technology and other net-zero products used in public contracts and works.

Net-Zero Industry Act Article 25 Guidance Defines Covered Procurement

Article 25 follows the thresholds and exclusions in the EU procurement directives. It applies when a listed net-zero technology final product forms part of the contract's subject matter. A school renovation that includes solar panels can be covered, but purchasing an electric bus is not covered only because the vehicle contains a battery.

For works contracts and concessions, buyers must include at least one additional requirement linked to social or employment considerations, applicable cybersecurity duties, or timely delivery of the net-zero element. Environmental minimum requirements depend on implementing acts. The current wind-blade recyclability minimum applies from 30 June 2026.

Resilience rules are triggered when the Commission's dependency communication identifies a dominant non-EU source. High dependency means more than 50% of EU supply comes from one non-EU country, or more than 40% does and that share rose by at least ten percentage points in two consecutive years.

Origin And Value Evidence Now Have A Practical Route

Where resilience applies, no more than 50% of the final product's value and no more than 50% of the aggregate value of its main specific components may originate from a dominant source. Tenderers may use the guidance's reference shares or prove actual component values with supporting records.

Origin evidence can include invoices, product identifiers, serial numbers, certificates of origin, bills of lading, bills of material, factory inspection certificates and manufacturing systems. If a contractor cannot produce relevant evidence, the buyer should assume the product or component comes from the dominant source.

The Commission now explains how to treat lots, framework agreements, embedded components, value calculations and evidence timing. The wording of Article 25 and the available statutory exceptions remain unchanged.

Suppliers that wait for a tender questionnaire may be too late. Component origin and added-value evidence often sits several tiers upstream, so tender readiness increasingly depends on procurement clauses and supply-chain due diligence established before a bid opens.

Practical Actions For Buyers And Net-Zero Supply Chains

Public buyers should identify covered final products, consult the dependency communication and set evidence checkpoints that reflect when suppliers are chosen. Tenderers should map final products and main components, choose reference or actual values, and retain reliable origin records for technologies such as batteries.

Manufacturers, distributors and component suppliers should align commercial and technical records. If a winning tenderer later cannot show compliance, the authority must impose a charge of at least 10% of the value of the specific net-zero final products, not the whole contract.