Innovation and Modernisation Fund Roman Doubrava DG CLIMA 08 October 2019
Vision for a Clean Planet by 2050 Several pathways for a climate neutral Europe, challenging but feasible from technological, economic, environmental and social perspectives Non-CO2 other Different zero GHG pathways Non-CO2 Agriculture lead to different levels of remaining emissions and Residential absorption of GHG emissions Tertiary Transport Industry Power Carbon Removal Technologies MtCO2eq MtCO2eq LULUCF Net emissions
Building blocks for 2050 1.Energy efficiency 2.Deployments of renewables 3.Clean, safe & connected mobility 4.Competitive industry and circular economy 5.Infrastructure and inter-connections 6.Bio-economy and natural carbon sinks 7.Tackle remaining emissions with carbon capture and storage
ETS Funds: Complementarities First-of-a- Research Infrastructure kind Connecting Horizon Europe Facility Europe Innovation Modernisation Fund Fund Partnerships Cohesion Funding InvestEU Member State Funding
Innovation Fund Carbon Capture Renewable Use and energy Storage Driving low-carbon technologies to the market Energy- intensive Energy storage industries including substitute products
Key features of the Innovation Fund Support of up to Volume of at least First call expected 60% of additional EUR 10 billion at for 2020 and costs related to current carbon regular calls up to innovative prices 2030 technology Support of Comprehensive Financed from the additional capital selection criteria revenues of the EU and operating and project Emissions Trading costs (up to 10 development System years) assistance
Technology and business Greenhouse gas emissions avoidance Selection criteria Degree of innovation Project maturity Scalability Cost efficiency
Two-stage selection process Expression of interest Criteria (a) and (b) Award of (a) GHG emissions avoidance are met project (b) Degree of innovation development List of assistance (c) Project maturity pre- selected Criteria (a), (b), projects (c) to be are met Full application consulted with MS (a) GHG emissions avoidance Award of (b) Degree of innovation project (c) Project maturity grants (d) Scalability (e) Cost efficiency
Support across project life-cycle Grant Financial Entry into Close Operation Award 3 to 10 years Add'l project Annual milestones instalments Feasibility Reporting FEED Construction Study period Payments 60% 40% At least 60%, dependent on verified Up to 40%, emissions reductions non-dependent on verified emissions reductions
Modernisation Fund: Basics – EU ETS Directive 2018/410 • Volume of at least 2% of the EU ETS cap for Modernisation Fund + additional transfers • To be distributed among 10 beneficiary Member States according to preset allocation key: Czech Bulgaria Estonia Croatia Republic Latvia Lithuania Hungary Poland Romania Slovakia
Priority investments at least 70 % of Modernisation Fund Just transition in Modernisation of Improvements in carbon-dependent energy systems energy efficiency regions Re-deployment / Renewables Energy up-skilling of generation workers (except solid fossil Networks fuels) (including district heating pipelines) Education and job-seeking Electricity Transport, Interconnectors buildings, Support to start- agriculture and Energy storage ups waste
Process overview
Key topics Assessment of Applicability of EU investments – State aid rules and Disbursement submission, other EU acquis timeline, eligibility EIB role: accounting, Investment Implementation monetization, committee and reporting asset management
Next steps Implementing act • 1st draft to be discussed with MS in Q4 2019 • Expected adoption in Q1-2 2020 Modernisation Fund operation milestones • Investment committee constitution Q2 2020 • Investment committee 1st meeting Q3 2020 • Modernisation Fund operational as of 2021
Recommend
More recommend
