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EU commits €4 billion to fund decarbonization, cleantech manufacturing projects

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By illuminem briefings

· 2 min read

Illuminem summarizes for you the essential news of the day. Read the full piece on ESG Today or enjoy below:

🗞️ Driving the news: The European Commission has announced a substantial investment of €4 billion into decarbonization technologies
• This funding, sourced from the EU Emissions Trading System (EU ETS), is part of the EU Innovation Fund, which is among the world's largest for innovative low-carbon technology demonstrations

🔭 The context: The EU Innovation Fund's latest call for projects is its fourth and largest, thanks to increased revenues from the EU ETS, a system established in 2005  
• The EU ETS, which prices carbon emissions from key sectors, recently expanded its scope, now expecting to generate about €40 billion from 2020-2030

🌍 Why it matters for the planet: This investment focuses on accelerating the deployment of innovative technologies essential for Europe's transition to climate neutrality
• By financing projects in sectors like renewable energy, carbon capture, and cleantech manufacturing, the EU aims to significantly reduce greenhouse gas emissions

⏭️ What's next: The allocated funds are divided into three main areas: €2.4 billion for general decarbonization, €1.4 billion for cleantech manufacturing, and €200 million for pilot projects in deep decarbonization
• These investments will support a range of projects, from large-scale initiatives to innovative pilots, across various high-emission sectors

💬 One quote: "The Innovation Fund is our key tool to support European industries in the transition to climate neutrality... The Innovation Fund ensures that the most promising ones in terms of emission reductions and scalability come to fruition." - Wopke Hoekstra, Commissioner for Climate Action.

📈 One stat: The Innovation Fund can cover up to 60% of a project's relevant costs, demonstrating the significant financial support provided by the EU to foster a low-carbon economy

Click for more news covering the latest on carbon

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