As Europe has been severely hit by the Coronavirus pandemic, the Green Deal is a central element for a resilient and sustainable recovery. Massive investment in low-carbon solutions are needed to radically transform our energy systems, from generation to industrial processes, from networks to end-users. Public support will be essential to crowd-in private finance, as well as to lower the risk exposure of green technologies, many of which are still at early phase of deployment. The Green Deal shall ensure that investment support is fairly distributed across territories and sectors according to their specific needs. From 2021 to 2030, some of the auctioned revenues from the EU Emission Trading System (EU ETS) will be set aside to create two of the largest EU funding instruments to support the transition to a low-carbon economy, amounting in total to some EUR 24 billion until 2030 (depending on the carbon price).
The Modernisation Fund is a new investment mechanism specifically addressed to the energy systems of ten EU lower-income Member States, i.e. Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia. It pools together around EUR 14 bn (depending on the carbon price) and will support investments for the modernisation of energy systems and the improvement of energy efficiency. In this context, he Modernisation Fund may be used to further support the deployment of the Renovation wave in Eastern Europe. The implementing act to be soon adopted by the Commission details further its operation.
The Innovation Fund pools together around €10 billion (depending on the carbon price) for the period 2020-2030. It is thus one of the largest programmes globally financing the commercial demonstration of innovative low-carbon technologies. It will finance industrial solutions to decarbonise Europe in energy intensive industries, innovative renewables, energy storage, and carbon capture use and storage. The Fund will help making the recovery efforts green, by addressing the need to channel investments into innovation and clean-tech solutions. The first call for proposals will be launched in June-July 2020.
The session will highlight how both Funds can support companies and Member States to achieve and even increase their climate objectives. DG Climate Action will present the main features of the Modernisation Fund and the first call for proposals under the Innovation Fund.