Brussels, 11 February – Renewable energy groups associations have expressed concerns that funding allocated to carbon capture and storage (CCS) projects under the second round NER300 scheme will harm renewable energy development.
Brussels, 11 February – Renewable energy groups associations have expressed concerns that funding allocated to carbon capture and storage (CCS) projects under the second round NER300 scheme will harm renewable energy development.
Under the first round, CCS projects proved unable to meet the European Commission’s funding criteria. €250 million was allocated to a French CCS project, only for it to withdraw at the last minute. Renewable energy associations believe that this remaining, available money should be provided for development of renewables, and that such focus on CCS as an unproven technology is excessively risky.
The budget provided for the second round is smaller than the first – €525 million compared to €1.5 billion – as it is linked with the sale of carbon credits, the price of which have fallen dramatically in the past years. The Commission has proposed to backload the sale of permits, releasing fewer credits at first, then easing more into the market, in order to raise their price, but the Parliament remains resistant to such a move.
The NER300 funding issue has split Member States in the Climate Committee, between renewable energy and CCS backers. The Commission has asked Member States to submit opinions before the next Climate Committee meeting on February 27, and will hold an information event on April 10 to assist states in planning the next steps.
Click through to read NER300 information and call pages.