EU Commission commits €4.6 billion to support cleantech projects
Dec 04, 2024
Brussels [Belgium], December 4: The newly appointed European Commission (EC) announced today plans to invest €4.6 billion in decarbonisation technology and clean hydrogen projects, utilising funds raised through its EU Emissions Trading System (EU ETS).
The new investment commitments include two new calls for proposals totalling €3.2 billion for net zero technologies, including €1 billion targeted specifically to electric vehicle battery cell manufacturing, and a further allocation of €1.2 billion to accelerate the production of renewable hydrogen through the European Hydrogen Bank, according to an EC statement released today.
Each of the initiatives will be financed by the EU's Innovation Fund, from funds raised through the EU ETS. Established in 2005, the ETS puts a price on carbon emissions for key GHG intensive sectors, including electricity and heat generation, oil refineries, steel, cement, paper, chemicals, and commercial aviation, among others. In 2023, EU lawmakers agreed to increase the EU ETS' scope, raising the direct emissions reductions required by covered sectors, and expanding the system to new sectors. The EU ETS is now expected to generate revenues of approximately €40 billion from 2020-2030.
The Innovation Fund is one of the world's largest funding programmes for the deployment of net zero technologies, and one of the key tools behind the European Green Deal Industrial Plan, aimed at enhancing the competitiveness of the Europe's net zero industries, and supporting the EU's transition to climate neutrality. The fund is aimed at creating financial incentives for companies and public authorities to invest in advanced net zero and low carbon technologies.
The EU Commission recently announced that it selected 85 decarbonisation technology-focused projects to receive €4.8 billion through the Innovation Fund in 2024.
Source: Emirates News Agency
