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Reuse of unspent NER300 funds (1)

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ZEP input to the design of modalities governing the proposed Innovation Fund and Modernisation Fund to be established under the EU ETS Directive

  • Publisher: ZEP
  • Issued: 13/06/2016

The European Commission proposed in its Summer Package 2015 that the existing NER300 programme should be replaced by an Innovation Fund under Phase IV of the EU Emissions Trading System, made up of an initial endowment of 450 million allowances. This Fund, supplemented by a Modernisation Fund for eligible Member States, would support the deployment of CCS projects, innovative renewables and to deliver emissions reductions from industrial installations.

NER300 aimed to support the European Council’s objective of 12 operational CCS demonstration projects by 2015. For multiple reasons, including the inadequacies of the NER300, not a single commercial scale CCS project is yet operating in the EU. In order to ensure that the Innovation Fund is fit for purpose and can deliver commercial scale CCS projects ZEP has undertaken an initial review of the NER300 Decision (2010/670/EU) and identified high level recommendations.

ZEP believes that the Innovation Fund should be made significantly more flexible than the NER300. View full ZEP input via link below.

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