The EU is planning to launch a new Innovation Fund aimed a low carbon projects. It plans to invest a part of the revenues from the EU Emissions Trading System (EU ETS) to finance the scheme.
The aim of the Innovation Fund is to accelerate the commercialisation of low-carbon technologies, processes and products in industrial sectors listed in the EU ETS Directive.
The Fund should stimulate the construction and operation of projects that aim at the environmentally safe capture, use of CO2 (CCU) and its geological storage (CCS), as well as innovative renewable energy and energy storage technologies in the territory of the European Union. Technologies receiving support should not be commercially available yet, but shall be sufficiently mature to be ready for demonstration at pre-commercial scale.
The creation of the Innovation Fund was planned at the launch of the ETS. It will allow up to 60% of the relevant costs of projects to be supported.
Project selection will be done based on objective and transparent criteria, including, among others, the potential for emission reductions, potential for wide application or significant lowering of transitioning costs towards a low-carbon economy in the concerned sectors,
Technologies to be supported are not yet commercially available, but represent breakthrough solutions or are sufficiently mature to be ready for demonstration at pre-commercial scale,
Projects in all Member States, including small-scale projects, are eligible to apply.
The European Commission has launched a public consultation will gather on inter alia the design elements of the Innovation Fund.
In 2017, the European Commission hosted a series of stakeholder consultations with representatives from energy-intensive industries, the energy and finance sectors. The resulting summary report points to over 80 potential technologies, including cross-cutting innovations, such as CCUS, green hydrogen or energy storage.
All citizens and organisations are welcome to contribute to this consultation which closes in April 2018.