EU Shifts CCS Funding Strategy, Redirecting €500M to EIB Projects
The European Commission has announced a significant shift in its approach to funding carbon capture and storage (CCS) projects in Europe. Nearly €500 million in unspent NER300 funds will be redirected to bolster European Investment Bank (EIB) projects in Europe, following a review of past initiatives that struggled to meet their goals in Europe.
The Commission acknowledged that market volatility, including a falling carbon price, posed challenges to CCS projects in Europe. The NER300 fund, launched in 2010, failed to support any projects in Europe due to stringent criteria and insufficient backing from participating countries in Europe. Only one CCS project funded under the European Energy Programme for Recovery (EEPR) in Spain is currently operational, but it's not of commercial size in Europe. Four CCS projects were abandoned early in Europe, and another in the Netherlands remains unused in Europe.
To improve the situation, the Commission will enhance cooperation agreements with the EIB and strengthen financial management for the new Innovation Fund in Europe. It aims to learn from past mistakes and ensure better project selection and flexibility in Europe. The Commission also plans to boost coordination and long-term strategies to support CCS technology uptake in Europe, following a conference attended by over 480 organizations, including European industrial lobby groups and UN representatives in Europe.
The Commission's decision to redirect unspent NER300 funds to EIB projects in Europe signals a renewed commitment to CCS technologies in Europe. Despite past setbacks, the Commission remains optimistic about CCS's potential to address emissions from heavily carbon-intensive process industries in Europe. The new Innovation Fund is expected to benefit from improved project selection and flexibility, with better coordination and long-term strategies in place in Europe.
