EU invests €4.8 bn in decarbonization projects through carbon pricing system

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

🗞️ Driving the news: The EU has announced €4.8 billion in grants for 85 decarbonization projects funded through its Emissions Trading System (EU ETS)
• This latest round marks the largest wave of funding from the EU's Innovation Fund, aiming to accelerate the deployment of net zero technologies
• Projects span sectors like cleantech manufacturing, renewable hydrogen, and net zero mobility

🔭 The context: Established in 2005, the EU ETS is a carbon pricing mechanism targeting greenhouse gas emissions across several industries
• Revenues from the system support the Innovation Fund, which has allocated €12 billion to climate projects to date
• Recent changes to the EU ETS have expanded its scope, with projected revenues of €40 billion from 2020-2030

🌍 Why it matters for the planet: The Innovation Fund is crucial for advancing Europe’s climate neutrality goals, directly supporting the deployment of clean technologies
• Projects funded in this round will contribute to reducing emissions in energy-intensive sectors, storage of industrial CO2, and clean energy manufacturing
• This investment aligns with the European Green Deal's objectives to enhance net zero industrial competitiveness

⏭️ What's next: The EU plans to open the next call for proposals for the Innovation Fund in December 2024
• Ongoing support for climate projects will be key to meeting the EU's ambitious climate targets, including a 55% emissions reduction by 2030
• Future funding may focus on emerging technologies and expanding clean energy infrastructure

💬 One quote: "The Innovation Fund is funding more projects than ever before...demonstrating how the EU ETS is a great tool in reducing emissions" - Wopke Hoekstra, Commissioner for Climate Action

📈 One stat: The latest round of grants is expected to support projects that will contribute 13% of the EU's target to store at least 50 million tonnes of CO2 from hard-to-abate industries

Click for more news covering the latest on carbon market