Selected aspects of the design of the innovation fund as part of the amendment of the EU ETS Directive

The European Commission has presented a proposal for revising the existing directive on the European Emissions Trading Scheme (EU ETS). The creation of the Innovation Fund will be an important component of this revision. A total of 450 million emissions certificates with an approximate selling value of five to eleven billion Euros are to be made available for the promotion of demonstration projects for innovative climate protection technologies in the fields of industrial processes, renewable energies, and CO2 capture and storage (CCS).

Commissioned by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), adelphi has prepared a series of policy briefs for internal use on the question of the innovation fund’s design. Portions of this series have now been made available by the BMUB for public use. The following three policy briefs compile the experiences of the forerunner programme NER300, discuss the provisions for distributing the project resources among the EU Member States in a geographically balanced way, and discuss possible criteria for appropriately arranging the co-financing and funding volumes for individual projects. 

» Analyse der Erfahrungen mit NER300 im Hinblick auf die Gestaltung von NER400/Innovationfonds (German)

» NER400/InnovationsFonds - Regeln zur geografischen Ausgewogenheit (German)

» Project volumes and co-financing rates for the industrial sector in the Innovation Fund

The policy briefs were compiled as part of the BMUB initiative "Analysis and development of the European climate and energy policy from the perspective of energy efficiency, energy infrastructure, and financing mechanisms".