EC Calls for Additional €50B in Low-Carbon Technologies
October 8, 2009 // Published as a news service by IHS
The European Commission (EC) invited public authorities, businesses and researchers to join efforts in developing, by 2020, technologies to address climate change, provide security of energy supply in the European Union (EU) and ensure the competitiveness of EU economies.
In an Oct. 7 proposal on "Investing in the development of low-carbon energy technologies," the EC estimated that an additional investment of €50 billion in energy technology research will be needed over the next 10 years.
The proposal represents a step forward in the implementation of the European Strategic Energy Technology Plan (SET Plan), the technology pillar of the EU's energy and climate policy. It means almost tripling the annual investment in the EU, from €3 to €8 billion.
The proposal considers different sources of funding, from both the public and private sectors and at both the national and EU level, to be used in a coordinated way. The EC said this coordinated approach will also help create jobs and push forward a fast-growing industrial sector.
Key Technologies and Activities to be Financed
The EC, together with industry and the research community, drew up technology roadmaps that identify key low-carbon technologies with strong potential at the EU level in six areas:
The additional costs would cover basic and applied research, demonstration and early market take-up, excluding deployment activities. A new initiative on energy efficiency for up to 30 cities (the "Smart Cities" initiative) was proposed as a first enabler for the mass market take-up of energy efficiency, renewable energy and energy network technologies.
A Shared Responsibility for Cost-effectiveness
The EC called for coordinated and complementary actions of relevant actors and for more risk-taking.
Public support is needed when the level of technological uncertainties and market risk is high. This should act as an incentive for industry involvement, supported by a stronger investment of banks and private investors into the companies that will drive the transition to a low-carbon economy.
The EC also considered intervention by the European Investment Bank to increase lending to finance the SET Plan.
EC Comments on its Proposal
Janez Potočnik, EC commissioner for science and research said, "Upgrading investment in research in clean technologies is urgent if Europe is to make the road to Copenhagen and beyond cheaper. With today's estimates, the EC wants to make the SET Plan a springboard to leap into a low-carbon economy, which is only possible if public and private actors pool resources in a coherent way. Increasing smart investments in research today is an opportunity to develop new sources of growth, to green our economy and to ensure the EU's competitiveness when we come out of the crisis."
EC Energy Commissioner Andris Piebalgs said, "Previous industrial revolutions have proved that the right technologies can transform for the better the way we live. Today we have a unique opportunity to change an energy model based on polluting, scarce and risky fossil fuels, into a clean, sustainable and less dependent one. All depends on choosing the right technologies."
Joaquin Almunia, EC commissioner for economic and monetary affairs, said, "The investment needs to develop clean and renewable energies, which can only be met through a wide range of financial instruments. The EC and the EIB have already significantly increased funding for this purpose. But we need to mobilise more public and private sector funds. We propose to reinforce the Risk Sharing Finance Facility, further support venture capital and develop the Marguerite and other funds."
Further Information
For more information, see:
Source: European Commission (EC).