EC launches 'largest' investment programme for projects demonstrating innovative low carbon technologies
Tue 16 November 2010
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The European Commission has issued a first call for proposals for the what it says is the world’s largest programme of investment in low carbon and renewable energy demonstration projects. The initiative, known as NER300, is a financing instrument managed jointly by the European Commission, the European Investment Bank and Member States.
The programme is so-called because Article 10(a) 8 of the revised Emissions Trading Directive 2009/29/EC contains the provision to set aside 300 million allowances in the New Entrants’ Reserve of the European Emissions Trading Scheme for subsidising installations of innovative renewable energy technology and carbon capture and storage (CCS). The allowances will be sold on the carbon market and the money raised will be made available to projects as they operate.
According to EurActiv, around eight eligible projects are expected to be given a share of the proceeds from the sale of 300 million carbon permits called 'EU Allowances' (EUAs) from the EU emissions trading scheme's (EU ETS) New Entrants' Reserve. This reserve sets aside EUAs for new installations and extensions to existing facilities. Meanwhile, the Commission has also published a new report on alternative fuel options for the transport sector.
In related news, a draft report by a European Expert Group established by the Commission to provide advice on developing political strategies for alternative fuels and assessing Europe's options for substituting oil in the transport sector has been published.
The report identifies battery electric or hydrogen fuel cells and biofuels as the main options for substituting oil in transport. The report states that the main options for complementary fuels in road transport, aviation and long-distance freight by 2050 will be liquid biofuels that are blendable at high rates and offer high energy density that is capable of being distributed through existing infrastructure.
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