The European Commission’s current strategy on ecological transition aims to ensure that the EU absorbs all the emissions it produces. If Member States choose to adopt this strategy, Europe’s energy-intensive industries will have to go through radical changes in order to adapt. To this end, last week the Commission approved a new Innovation Fund.
By selling millions of carbon allowances under the Emissions Trading Scheme, the Commission would like to raise a budget of USD 10 billion to develop, test and market technologies to combat global warming.
The fund will also take over the unused budget from its predecessor, the NER 300 programme. The EU auditors concluded last year that the programme had failed in its mission due to a lack of coordination in particular.
The NER300 programme and the European Energy Programme for Recovery (EEPR) have raised nearly €4 billion in funds, of which almost half a billion remain unused at present.