Consider the following statements : Statement-I : The European Parliament approved The 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 ?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2024, Q72

Contents15
UPSC Prelims GS2024Environment
  1. ABoth Statement-I and Statement-II are correct and Statement-II explains Statement-I
  2. BBoth Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  3. CStatement-I is correct, but Statement-II is incorrect
  4. DStatement-I is incorrect, but Statement-II is correct
Show answer

Answer: (C) Statement-I is correct, but Statement-II is incorrect

Correct Answer: (c) Statement-I is correct, Statement-II is incorrect.

Statement I: The European Parliament approved the Net-Zero Industry Act — ✓ CORRECT.

This Act aims for Europe to produce 40% of its clean technology needs domestically by 2030.

Statement II: The EU aims for carbon neutrality by 2040 — ✗ WRONG.

The EU's target is carbon neutrality by 2050, not 2040.

Also, 'develop ALL of its own clean technology' is an overstatement.

Easy way to remember:

  • EU climate neutrality target = 2050.
  • If you see 2040 in the options, it's wrong.
Why this was asked

The Net-Zero Industry Act was approved by the European Parliament in 2024 to reduce dependence on Chinese clean technology and boost domestic manufacturing capacity.

UPSC frequently tests students on mixing up climate target dates - EU's carbon neutrality target is 2050, not 2040, while the Act aims for 40% domestic clean tech production by 2030.

The question tests precision in reading policy details - the EU wants strategic autonomy in clean tech, not complete self-sufficiency as Statement-II claims.

EU Net-Zero Industry Act

Environment Net-Zero Industry Act European Parliament

EU Net-Zero Industry Act: Strategic Clean Technology Manufacturing

Must know

European Parliament approved the Net-Zero Industry Act in 2024

EU targets 40% domestic production of clean technology needs by 2030

Good to know

Focus on strategic autonomy in clean energy supply chains

Part of EU's Green Deal Industrial Plan

Purpose & Context

The Net-Zero Industry Act is the EU's response to reduce dependence on China and other countries for clean technology. It aims to boost Europe's manufacturing capacity in solar panels, wind turbines, batteries, and other green technologies.

Key Provisions

Aspect

Target/Provision

Domestic Production

40% of EU's clean tech needs by 2030

Technology Focus

Solar, wind, batteries, heat pumps, electrolyzers

Permitting

Faster licensing for strategic projects

Investment

Public procurement preferences for EU-made products

Timeline

Approved 2024, targets by 2030

This PYQ tests knowledge of recent EU climate legislation. Statement-I about Parliament approval is correct, but Statement-II contains the 2040 vs 2050 trap that UPSC frequently uses.

Exam traps

Trap: Confusing Net-Zero Industry Act with broader climate neutrality targets

Trap: Mixing up 2040 (incorrect) with 2050 (EU's actual neutrality target)

Trap: Assuming the Act means 100% domestic production (it's only 40%)

EU Carbon Neutrality Timeline

Environment carbon neutrality 2040 European Union

EU Carbon Neutrality: 2050 Target vs Common Exam Traps

Must know

EU's carbon neutrality target is 2050, not 2040

European Green Deal sets the 2050 framework

Good to know

Intermediate target: 55% emission reduction by 2030

Legally binding under European Climate Law

EU Climate Framework

The European Green Deal (2019) committed the EU to become the first climate-neutral continent by 2050. This target is legally binding under the European Climate Law and aligns with the Paris Agreement's temperature goals.

EU Climate Timeline

Year

Target

Status

2030

55% emission reduction (vs 1990)

Intermediate milestone

2040

No official EU-wide target

❌ Common exam trap

2050

Carbon neutrality/net-zero

✅ Official EU target

2030

40% domestic clean tech (Industry Act)

Separate manufacturing goal

Question Analysis

Statement-II in the PYQ incorrectly states 2040 as EU's carbon neutrality target. The correct target is 2050. UPSC frequently tests this specific confusion between 2040 and 2050 in climate questions.

Exam traps

Major Trap: EU carbon neutrality is 2050, not 2040 — memorize this distinction

Trap: Don't confuse intermediate targets (2030: 55% reduction) with final neutrality (2050)

Trap: 'ALL clean technology' is unrealistic — EU aims for strategic autonomy, not 100% self-reliance

Global Carbon Neutrality Commitments

Environment

Major Countries' Carbon Neutrality Targets: Global Comparison

Must know

Most developed countries target 2050 for carbon neutrality

China and Russia target 2060 — a decade later

India targets 2070 — reflecting development needs

Global Context

Carbon neutrality targets vary based on economic development and historical emissions. Developed countries generally commit to 2050, while developing nations set later dates reflecting their development priorities and lower historical emissions.

Major Carbon Neutrality Targets

Country/Region

Target Year

Key Features

European Union

2050

Legally binding, European Climate Law

United States

2050

Rejoined Paris Agreement 2021

United Kingdom

2050

First major economy to legislate

Japan

2050

Announced 2020, revised from earlier 2080

China

2060

Peak emissions by 2030, then decline

Russia

2060

Announced 2021, depends on natural sinks

India

2070

COP26 commitment, developing country timeline

Exam traps

Trap: EU is 2050, not 2040 — don't fall for the decade shift

Trap: China and Russia are both 2060 — not 2050 like developed countries

Trap: India's 2070 is the most distant among major economies

India's Climate Commitments

Environment

India's Climate Targets: Panchamrit & Net-Zero 2070

Must know

India committed to net-zero by 2070 at COP26

Panchamrit (5-element strategy) announced at COP26

500 GW renewable capacity by 2030 target

Good to know

50% electricity from renewables by 2030

India's Approach

At COP26 Glasgow (2021), PM Modi announced India's Panchamrit strategy — five commitments that balance climate action with development needs. India's 2070 net-zero target gives more time than developed countries, reflecting its development priorities.

India's Panchamrit Commitments

Element

Target

Timeline

Non-fossil capacity

500 GW

By 2030

Renewable share

50% of electricity

By 2030

Carbon intensity

45% reduction (vs 2005)

By 2030

Emission reduction

1 billion tonnes CO2

2021-2030

Net-zero

Carbon neutrality

By 2070

Global Context

India's 2070 target is 20 years later than most developed countries (2050) but still represents a major commitment given India's development needs and relatively low per-capita emissions.

Exam traps

Trap: India's target is 2070, not 2050 or 2060

Trap: Panchamrit means 5 commitments, not 3 or 7

Trap: Renewable capacity target is 500 GW, not 450 GW (old target)