European Commission allocates €3 billion to decarbonisation projects
The European Commission has launched its third call for projects under the EU Innovation Fund with an allocation of €3 billion ($3 billion) with focus on carbon capture use and storage (CCUS) initiatives.
PHOTO: Exhaust gases flow from the funnel of a cruise ship. Getty Images
The commission has earmarked €1 billion ($1 billion) for renewable energy projects such as CCUS, which could help to reduce emissions from transportation including shipping and aviation.
The technology has gained attention from the shipping industry as several companies have increased efforts to reach net zero emissions by 2050.
It has set aside €1 billion ($1 billion) for projects related to renewable hydrogen production to increase uptake across industries.
An amount of €700 million ($700 million) has been allocated to support manufacturing of components used in electrolysers, fuel cells and other renewable energy storage equipment. And remaining €300 million ($300 million) will be used for development of innovative technologies used in decarbonisation projects.
These projects will be funded from the Innovation Fund, which has been created to incentivise investments in low-carbon technologies. The fund will draw more than €38 billion ($38 billion) in funding from EU Emissions Trading System (ETS) allowances until 2030.
The commission has doubled the total allocation in its third call from €1.8 billion ($1.8 billion) announced in July due to higher revenue from ETS allowances, it says.
These projects will help to reduce the European Union’s dependence on Russian fossil fuels, the Commission says.
By Shilpa Sharma
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