The European Commission today revealed a significant investment plan, committing €4.6 billion toward decarbonization and renewable hydrogen projects. This funding, sourced through the EU Emissions Trading System (ETS), underscores the Commission’s dedication to advancing the EU’s climate neutrality goals and strengthening the competitiveness of its green industries.
Investment Overview
- Net Zero Technologies:
- Two calls for proposals totaling €3.2 billion.
- Focus areas include renewable energy components, energy storage, heat pumps, and hydrogen production.
- Electric Vehicle Batteries:
- A €1 billion allocation specifically for innovative EV battery manufacturing projects and advanced production methods.
- Renewable Hydrogen:
- €1.2 billion channeled through the European Hydrogen Bank to boost renewable hydrogen production.
Funding Mechanism
The Innovation Fund, backed by the EU ETS, is the financial backbone of these initiatives. Established to channel carbon market revenues into transformative technologies, the EU ETS generated significant revenues by pricing carbon emissions across sectors like energy, aviation, and manufacturing. This investment reflects its expanding scope and the EU’s commitment to reducing emissions across the board.
Key Objectives
- Technological Advancement: Integrating innovative technologies with global climate goals.
- Supply Chain Resilience: Focused funding to reduce reliance on non-EU suppliers for critical materials.
- Economic and Environmental Impact: Supporting sustainable industry practices while driving economic growth.
Global and Collaborative Scope
The Commission’s plans align with broader global sustainability goals. Partnering with the European Investment Bank (EIB), a €200 million loan guarantee will support the European battery manufacturing value chain under the InvestEU program.
Commission’s Perspective
Wopke Hoekstra, Commissioner for Climate, Net Zero, and Clean Growth, emphasized:
“We are investing €4.6 billion to back cutting-edge European projects in net-zero technologies, electric vehicle batteries, and renewable hydrogen. This reflects our commitment to delivering for European citizens and businesses through sustainable innovation.”
The announcement follows the 2024 Innovation Fund selection of 85 decarbonization projects worth €4.8 billion, showcasing the EU’s proactive approach to achieving climate goals.
| Find out more here. |
