EU Invests €4.6 Billion in Clean Hydrogen

December 5, 2024

The European Commission (EC) has announced an investment in clean hydrogen and decarbonization technologies and aims to enhance the EU’s commitment to climate neutrality. The funding will be sourced from the EU Emissions Trading System (EU ETS).

EU Emissions Trading System Overview

The EU ETS was established in 2005, and charges industries for carbon emissions. Key sectors include electricity, steel, cement, and aviation. The system expanded in 2023 to include more sectors. Stricter emission reduction targets were also introduced, are projected to generate €40 billion in revenue from 2020 to 2030.

Funding Breakdown

The EC plans to invest €4.6 billion in clean technologies, including two new funding programs worth €3.2 billion. Of this, €1 billion will support electric vehicle battery production. Additionally, €1.2 billion will promote renewable hydrogen production. This funding is facilitated through the European Hydrogen Bank.

The Innovation Fund is one of the largest programmes for net-zero technologies. It is important component of the European Green Deal Industrial Plan. The fund encourages investments in low-carbon solutions. It aims to help the EU achieve climate neutrality.

Selected Projects for 2024

For 2024, the EC has selected 85 projects for funding. These projects focus on decarbonisation technologies. They will receive €4.8 billion from the Innovation Fund. This selection is a step forward in Europe’s green transition.

These investments reflect the EU’s commitment to reducing carbon emissions. They also signify a push towards sustainable technologies. The initiatives are expected to stimulate economic growth in green sectors.

Important Facts for Exams:
European Hydrogen Bank: This institution supports renewable hydrogen production. It plays a critical role in financing clean energy projects. Its establishment is vital for the EU’s climate goals.
EU Emissions Trading System (EU ETS): Established in 2005, this system charges industries for carbon emissions. It has expanded to include more sectors. The projected revenue is €40 billion by 2030.
Innovation Fund: This fund is one of the largest for net-zero technologies. It encourages low-carbon investments. It is integral to the European Green Deal Industrial Plan.
Decarbonisation Technologies: These technologies aim to reduce carbon emissions . They are essential for achieving climate neutrality. The EU has selected 85 projects for funding in 2024.

« Previous Post Next Post »