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According to the World Economic Forum’s latest Net Zero Industry Tracker report, the investments needed in these hard-to-abate industries, commonly referred to as “clean tech,” will total $13.5 trillion between now and 2050. is expected to reach. Energy-related emissions from these sectors account for more than 40% of total global greenhouse gas (GHG) emissions, but unfortunately only account for just over 10% of total investment in innovation. Not occupied.
Turning to Europe, the European Commission estimates that cleantech will require investments of €92 billion between 2023 and 2030. According to Cleantech for Europe, counting both public and current private investments reveals an estimated investment gap of €50 billion.
To address this gap, it is essential that governments create frameworks to encourage investment in cleantech. All of these technologies could face a “valley of death,” making public policies that encourage private investment imperative.
While it is true that we need ambitious policies that provide certainty for all actors, one of the key pillars of such policies must be appropriate incentive mechanisms. The United States has already done this with the Inflation Control Act (IRA), and now it is Europe’s turn to do so with the Net Zero Industry Act.
The main aim of the soon-to-be-enacted law is to ensure that at least 40% of strategic clean technologies, such as solar, wind, batteries and storage, heat pumps and geothermal energy, electrolyzers and fuel cells, and biogas, are manufactured within the EU. It is. /Biomethane, carbon capture, utilization and storage, grid technology, nuclear power.
Contains specific goals CO2 capture and storagewith annual injection capacity of at least 50 million tons by 2030. The law also envisages expedited permitting of cleantech projects to a submaximal extent. 12 months or 18 months, depending on the size. Development of a valley or region of net zero acceleration. Incorporating these technologies into public procurement processes. We also champion favorable regulatory frameworks for developing, testing and validating innovative technologies.
One of the main criticisms of this initiative is the lack of additional funding from Europe, similar to that provided in the United States. But the EU has another asset. It is the EU Emissions Trading System (EU ETS for short). In 2022, this system will Revenue 38 billion eurosof which almost all 80% went directly to member states. Of the remaining amount, his 3.2 billion euros went to the EU Innovation Fund.
as Institute for Climate Economics, Breakthrough and Energy As quickly pointed out, the EU currently has an excellent opportunity to use a large part of the ETS revenues, which are expected to increase in the coming years, to promote investments in cleantech. What is noteworthy is the funding that member states receive. will quadruple in the next 12 years.you should ask them to invest 25% of these proceeds will go towards advancing clean technology. Meanwhile, the EU Innovation Fund could grow from its current level. From 3.2 billion euros per year to 25 billion euros by 2030.
If Europe plays its cards right, it has a huge opportunity to create the right environment for businesses to invest in the innovation they need and for the financial sector to accompany and support this important cycle.we have the opportunity to europe will be the winner In this organizational movement, decarbonization.
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