EUROPEAN COMMISSION
DAILY NEWS
Brussels, 23 October 2024
EU invests pound 4.8 billion of emissions trading revenues into innovative net-zero projects
Today, the Commission has selected 85 innovative net-zero projects to receive pound 4.8 billion in grants from the Innovation Fund, helping to put cutting-edge clean technologies into action across Europe. For the first time, projects of different scales (large, medium and small, alongside pilots) and with a cleantech manufacturing focus are awarded under the 2023 call for proposals. This is the largest since the start of the Innovation Fund in 2020, boosting the total amount of support to pound 12 billion and increasing the number of projects by 70%.
The selected projects are located in 18 countries: Belgium, Denmark, Germany, Estonia, Greece, Spain, France, Croatia, Italy, Hungary, Netherlands, Austria, Poland, Portugal, Slovakia, Finland, Sweden and Norway. They cover a wide range of sectors from the following categories: energy-intensive industries, re
newable energy, energy storage, Industrial Carbon Management, net-zero mobility (including maritime and aviation) and buildings.
The selected projects are set to enter into operation before 2030 and over their first ten years of operation are expected to reduce emissions by about 476 million tonnes of CO2 equivalent. This will contribute to European decarbonisation objectives, reducing emissions from those sectors that are particularly difficult to decarbonise, strengthen European industrial manufacturing capacity and reinforce Europe’s technology leadership and supply chain resilience.
Supporting industrial innovation for key policy objectives
Today’s selected projects particularly contribute to reaching the following EU policy objectives:
Cleantech manufacturing: In line with the Net-Zero Industry Act (NZIA), clean-tech projects selected will develop, build and operate manufacturing plants for key components in wind and solar energy and for heat pumps, as well as components for electrolysers, fuel cells
, energy storage technologies and the batteries value chain. Selected projects will contribute to 3 GW of solar photovoltaic manufacturing capacity in the EU and 9.3 GW of electrolyser manufacturing capacity in the EU, further strengthening EU’s clean energy infrastructure.
Energy-intensive industries: Selected projects will support various technologies to cut net greenhouse gas emissions in energy-intensive industries, target renewable energy integration, heat and energy storage solutions, recycling and reuse, as well as electrification.
Industrial carbon management: Projects selected in this call will capture CO2 and contribute 13% of the NZIA target of storing at least 50 million tonnes of CO2 per year from various hard-to-abate sources in energy-intensive industries, such as cement and lime, (bio)-refineries, chemicals and waste-to-energy.
Renewable hydrogen: Selected projects will deliver 61 kilotonnes of RFNBO (renewable fuel of non-biological origin) annually, contributing to increase the use and pr
oduction of renewable energy in hydrogen in hard-to-abate applications in industry and transport.
Net-zero mobility: Projects will help cut emissions in the mobility sector, with the maritime sector benefiting the most. These projects involve building and retrofitting vessels for RFNBO fuels and electricity use, as well as reducing emissions in road transport component manufacturing. Awarded projects will also support sustainable transport fuels, producing 525 kilotonnes of renewable fuels per year.
The selected projects were evaluated by independent experts against five award criteria: potential to reduce greenhouse gas emissions; degree of innovation; operational, financial, and technical maturity; replicability; and cost efficiency.
Next steps
Successful applicants are due to sign their grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA) in the first quarter of 2025.
In addition to the 85 projects selected for funding today, other promising but insuffici
ently mature projects will receive project development assistance from the European Investment Bank.
Beyond the selected projects, for the first time 64 more projects that scored above all Innovation Fund evaluation thresholds are also awarded the ‘STEP Seal’ – the EU’s new quality label to be awarded to high-quality projects contributing to the objectives of the Strategic Technologies for Europe Platform (STEP). The STEP Seal aims to facilitate access to further opportunities of support for these 64 projects, which are requesting a total budget of pound 8.4 billion. Information related to those projects will be available at the end of November 2024 on the STEP Portal.
The Commission will launch the next call for proposals under the Innovation Fund in early December 2024.
Background
The EU ETS Innovation Fund is one of the world’s largest funding programmes for the deployment of net-zero and innovative technologies. It is one of the key tools of the European Green Deal Industrial Plan. With an estimated r
evenue of pound 40 billion from the EU Emissions Trading System between 2020 and 2030, the Innovation Fund is designed to create financial incentives for companies and public authorities to invest in advanced net-zero and low-carbon technologies, supporting Europe’s transition to climate neutrality. So far, the Innovation Fund has awarded about pound 7.2 billion to more than 120 innovative projects across the European Economic Area (EEA) through previous calls for proposals.
The Innovation Fund is implemented by the CINEA, while the European Investment Bank (EIB) provides the project development assistance to promising projects that are not sufficiently mature for Innovation Fund grants.
The 2023 call for proposals of the Innovation Fund attracted 337 project applications of which 283 were eligible and admissible for evaluation. Among the 85 selected projects, the Innovation Fund is now also supporting projects in Estonia and Slovakia, enlarging the list of countries receiving funding.
For more information
Question and Answers
Results of previous Innovation Fund calls for proposals
Innovation Fund projects portfolio (with information related to the selected projects)
Innovation Fund projects dashboard
EU Emissions Trading System (ETS)
Delivering the European Green Deal
Quote(s)
In a pivotal stride towards Europe’s climate neutrality goals, the Innovation Fund has achieved another significant milestone. The unprecedented pound 4.8 billion in grants will support the largest selection of Innovation Fund projects to date. For the first time, the STEP Seal has been awarded to a number of projects, which can facilitate access to more EU funding opportunities, helping make European industry stronger and more competitive.
Maroš Šefcovic, Executive Vice-President for European Green Deal, Interinstitutional Relations and Foresight
The Innovation Fund is funding more projects than ever before. 85 innovative projects in 18 countries bring cutting-edge clean technologies at the service of climate action. New proj
ects in the maritime, aviation and road transport sectors will boost efforts to reach clean mobility. The Fund is once again demonstrating how the EU ETS is a great tool in reducing emissions, and funding the projects we need to build a climate-neutral and competitive Europe.
Wopke Hoekstra, Commissioner For Climate Action and responsible for transport
Commission approves Reform Agendas of Albania, Kosovo, Montenegro, North Macedonia and Serbia, paving way for payments under the Reform and Growth Facility
Today, the Commission approved the Reform Agendas of Albania, Kosovo, Montenegro, North Macedonia and Serbia following the EU Member States’ positive opinion. In their ambitious Reform Agendas, the five Western Balkans governments commit to socio-economic and fundamental reforms they will undertake to spur growth and convergence with the EU under the Growth Plan during the period of 2024 – 2027.
This step was key to allow payments under the EU’s pound 6 billion Reform and Growth Facility, that will be ma
de upon completion of agreed reform steps.
Commission President Ursula von der Leyen said: ‘I’m impressed by the work of our Western Balkan partners on their Reform Agendas. It shows that they are committed to the success of the Growth Plan. It’s our roadmap to bring the economies of the Western Balkans closer to ours. And to give their companies the access and the means to compete on our Single Market. Everyone benefits, and it’s a big leap forward towards the European Union’.
The Reform Agendas focus on the reforms in the priority areas of rule of law and other fundamentals, governance, the digital and green transition, human capital development and the business environment. In addition, each beneficiary has proposed a list of indicative investments to be funded under the Facility, critical to unlocking socio-economic growth, to be approved in the context of the Western Balkan Investment Framework.
The Commission has assessed each Reform Agenda based on the criteria established by the Reform and Growth F
acility Regulation. The Commission concluded that the Reform Agendas fulfil the objectives of the Facility, including to accelerate the closing of the socio-economic gap between the beneficiary and the Union, and to further strengthen the fundamentals of the enlargement process.
Payments will be made twice a year until 2027, based on requests submitted by the Western Balkans partners and verification by the Commission of the three sets of conditions:
Pre-conditions of upholding democratic mechanisms, rule of law and respect for human rights. A specific pre-condition applies to Serbia and Kosovo who must engage constructively in the normalisation of their relations, including the implementation of all Dialogue agreements, which will be assessed taking into account the role and contribution of the European External Action Service.
General conditions of macro-financial stability and sound public financial management must be fulfilled before the disbursement of funds.
Payment conditions, i.e. fulfilling quant
itative and qualitative steps, to which reforms are split.
The Commission is looking forward to Bosnia and Herzegovina formally submitting their Reform Agenda to proceed with its assessment and continues supporting the authorities to finalise it, for the benefit of all citizens.
Next steps
The Commission shall now proceed to signing loan and facility agreements with the beneficiaries, which will include obligations for beneficiaries to undertake appropriate measures to prevent, detect and correct fraud, corruption, conflicts of interests and irregularities affecting the financial interests of the Union, to avoid double funding and to take legal action to recover funds that have been misappropriated, the collection of adequate data on the recipients of funds under the Facility and the rights to be granted to the Commission, the European Anti-Fraud Office (OLAF), and the European Public Prosecutor’s Office (EPPO) where applicable.
In parallel, beneficiaries can request the release of a pre-financing of up t
o 7% of their total indicative allocation foreseen under the Facility.
The disbursement of pre-financing will be subject to the entry into force of the facility and loan agreements, and subject to the respect of the preconditions, which the Commission will monitor ahead of each payment.
Background
On 8 November 2023, the Commission adopted the Growth Plan for the Western Balkans. This ambitious Plan aims to accelerate the socio-economic convergence of the region with the EU and pave the way to EU membership. The Plan is supported by an increase of financial assistance through the new Reform and Growth Facility which entered into force on 25 May 2024. The Facility will complement the current financial assistance under the Instrument for Pre-accession Assistance (IPA III).
The Facility has a financial envelope of pound 6 billion, including pound 2 billion in grants and pound 4 billion in highly concessional loans. At least half of the total amount (grants and loans) will go to investments through the Wester
n Balkans Investment Framework (WBIF).
The remaining amount of loans will be provided to the treasuries of the Western Balkan governments to accelerate growth based on socio-economic reforms.
For More Information
Commission Staff Working Document – Albania
Commission Staff Working Document – Kosovo
Commission Staff Working Document – Montenegro
Commission Staff Working Document – North Macedonia
Commission Staff Working Document – Serbia
Reform and Growth Facility Regulation
Factsheet on the Growth Plan
Commission Implementing Decision
Quote(s)
I’m impressed by the work of our Western Balkan partners on their Reform Agendas. It shows that they are committed to the success of the Growth Plan. It’s our roadmap to bring the economies of the Western Balkans closer to ours. And to give their companies the access and the means to compete on our Single Market. Everyone benefits, and it’s a big leap forward towards the European Union.
Ursula von der Leyen, President of the European Commission
The implem
entation of the ambitious Reform Agendas will bring an additional pound 6 billion support to the Western Balkans. As necessary reform steps and investment areas were defined in line with the Growth Plan for 2024-2027, we will bolster the market economy of the region and offer real-time benefits to citizens and businesses. With this tool in place, we strengthen the Common Regional Market and gradually integrate the region into the EU Single Market at the same time.
Olivér Várhelyi, Commissioner for Neighbourhood and Enlargement
More than pound 40 million from Cohesion Policy funds to protect people, homes and businesses from flooding in Athens, Greece
The Commission yesterday adopted pound 40 million from the Cohesion Fund to help the city of Athens better prepare for and prevent future flooding and protect homes and businesses from the devastating effects of flooding.
The funds will be used to improve 4.83 km of the upstream part of the Eschatia river, which poses a significant flood risk to the local com
munity as it flows through densely populated urban areas with many buildings located on its banks.
Elisa Ferreira, Commissioner for Cohesion and Reforms, said: ‘Extreme weather events are becoming more intense and frequent. Thanks to this EU-funded project, the citizens of Athens will be better protected against future flooding, ensuring that their homes, businesses and regions are adequately protected. It will enable the city of Athens to become more resilient to the effects of climate change in the future.’
The upstream area will be channelled through the installation of underground gutters, concrete structures that will relieve drainage and flooding of the surrounding areas. Funds will also be used to build rainwater drainage systems and create green spaces to regenerate the areas around the watercourse. 600 hectares of residential land will be better protected against flooding.
pound 69 million of Cohesion Policy funds have already been invested to support flood protection mechanisms along the downstre
am area, protecting over 300,000 residents from flooding.
Today’s support is expected to improve citizens’ quality of life, ensure better use of land around waterways and boost the local economy.
Helping Member States build resilience and preparedness to climate-related disasters is an important priority for the Commission. To strengthen this support, the Commission yesterday proposed new flexibilities under the Cohesion Policy funds to ensure that EU funds can be mobilised quickly to support disaster recovery.
(For more information: Stefan De Keersmaecker – Tel.: +32 2 298 46 80; Laetitia Close – Tel.: +32 2 296 70 73)
CALENDAR
Monday 21/10
Mr Margaritis Schinas in Hanoi, Vietnam (until 23/10): delivers opening remarks at the Green Economy Forum and Exhibition 2024.
Tuesday 22/10
Mr Margaritis Schinas in Hanoi, Vietnam: delivers opening remarks at the Erasmus+ day; participates in the ceremonial signing with World Vision and Red Cross.
Friday 25/10
Ms Stella Kyriakides delivers a speech via video
conference at an event on the EU’s policies on child cancer organised by MEP Giorgos Georgiou; delivers a speech via videoconference to present Europe’s Beating Cancer Plan at the Breast Cancer Awareness event organised by Ms Evanthia Savva, Mayoress of Aradippou.
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Source: Cyprus News Agency