A Clean Planet for all A European strategic long term vision for a prosperous, modern, competitive and climate neutral economy

Building blocks for 2050 Energy efficiency Deployments of renewables Clean, safe & connected mobility Competitive industry and circular economy Infrastructure and inter-connections Bio-economy and natural carbon sinks Tackle remaining emissions with carbon capture and storage

Vision for a Clean Planet by 2050 Several pathways for a climate neutral Europe, challenging but feasible from technological, economic, environmental and social perspectives

Scenario Analysis Results for CCUS CCS will be required to reduce emissions of any remaining fossil fuels use (power sector, industry) In the case of higher ambition targets, CCS combined with biomass is required to generate negative emissions It also seems necessary for certain hard to decarbonize industrial processes CCU – synthetic fuels and materials (e.g. in plastics) are also seen as options Climate Action

Innovation Fund First tool to implement Long-Term Strategy Driving low-carbon technologies to the market Revised EU ETS Directive EU/2018/410 Delegated Regulation on operation of the Innovation Fund EU/2019/856 

Driving low-carbon technologies to the market Innovation Fund aims to support breakthrough solutions sufficiently mature to be ready for demonstration at pre-commercial scale Renewable energy Carbon Capture Use and Storage Energy-intensive industries including substitute products Energy storage Driving low-carbon technologies to the market

Key features of the Innovation Fund Volume of at least EUR 10 billion at carbon prices of €20tCO2 Support of up to 60% of additional costs related to innovative technology First call expected for 2020 and regular calls up to 2030 Financed from the revenues of the EU Emissions Trading System Support of additional capital and operating costs (up to 10 years)* Comprehensive selection criteria and project development assistance *For small-scale projects with less than EUR 7,5 M total capital expenditure: relevant cost = total capital expenditure

Degree of innovation compared to the state of the art Selection criteria Effectiveness of greenhouse gas emissions avoidance potential, where applicable compared to EU ETS benchmarks Degree of innovation compared to the state of the art Project maturity in terms of planning, business model, financial and legal structure and reaching financial closure within 4 years Scalability: technical and market potential for widespread application or replication or for future cost reductions Cost efficiency: relevant cost minus contribution by project proponent divided by total performance over 10 years

List of pre-selected projects to be consulted with MS Two-stage selection process* Simplified application and selection procedures may apply for small-scale projects Expression of interest Criteria (a) and (b) are met Award of project development assistance (a) GHG emissions avoidance (b) Degree of innovation (c) Project maturity List of pre-selected projects to be consulted with MS Criteria (a), (b), (c) are met Full application (a) GHG emissions avoidance (b) Degree of innovation (c) Project maturity (d) Scalability (e) Cost efficiency Award of project grants

Support across project life-cycle Grant Award Financial Close Entry into Operation 3 to 10 years Add'l project milestones Annual instalments Feasibility Study FEED Construction Reporting period Payments 40% 60% Up to 40%, non-dependent on verified emissions reductions At least 60%, dependent on verified emissions reductions

Synergies – Innovation Fund Research Horizon Europe Partnerships Demonstration Innovation Fund Roll-out Infrastrucuture Connecting Europe Facility Modernisation Fund Cohesion Funding InvestEU Member State Funding

Timeline – Innovation Fund Adoption Delegated Regulation 26 February 2019 Preparations for first call Industry workshops Q2 – Q3 2019 Public consultation on conditions for first call Q4 2019 – Q1 2020 First call for proposals mid-2020

https://ec.europa.eu/clima/policies/innovation-fund_en #InnovationFund