February 26 (Renewables Now) - The European Commission today announced an investment programme worth over EUR 10 billion (USD 11.36bn) for low-carbon technologies in several sectors.
"Less than three months after adopting our strategic vision for a climate neutral Europe by 2050, we are putting the money where the mouth is, " the Commissioner for Climate Action and Energy Miguel Arias Canete said.
At least 450 million allowances from the EU Emissions Trading System (EU ETS) Directive will be sold on the carbon market in the period 2020-2030. Depending on the carbon price, these sales are expected to bring about EUR 9 billion at current prices of EUR 20 a piece or more.
Any undisbursed revenues from the Innovation Fund's predecessor, the NER 300 programme, will also be added to the Innovation Fund. Thus, the total endowment of the new fund will be around EUR 10 billion.
The Innovation fund will build on the experience from the NER 300 programme -- the current EU programme to support the demonstration of carbon capture and storage and renewable energy technologies, and expands its scope to also explicitly cover energy storage and energy intensive industries.
It will offer grants to cover up to 60% of the additional capital and operational costs linked to innovation for the selected projects, disbursing the money in a flexible way based on the needs of individual projects.
The Commission aims to launch the first call for proposals under the Innovation Fund in 2020, followed by regular calls until 2030.
(EUR 1 = USD 1.136 )