EU Commits €4.6 Billion to Drive Clean Energy Revolution

The European Commission has pledged €4.6 billion to promote decarbonisation and clean hydrogen technology through the EU Emissions Trading System. This includes €3.2 billion for net-zero tech and €1.2 billion for renewable hydrogen. The effort is part of the EU's Green Deal to achieve climate neutrality.

The European Commission has unveiled a massive €4.6 billion investment strategy aimed at advancing decarbonisation technology and clean hydrogen projects. The funding, sourced through the EU's Emissions Trading System (ETS), is part of a broader effort to accelerate Europe's transition to a net-zero future.

The new commitment includes two announcements for proposals totaling €3.2 billion targeting net-zero technologies. Of this, €1 billion is earmarked for electric vehicle battery cell manufacturing, while another €1.2 billion is dedicated to enhancing the production of renewable hydrogen via the European Hydrogen Bank.

The initiatives will be financed by the EU's Innovation Fund, which draws from ETS-generated revenue. Originally launched in 2005, the EU ETS assigns a cost to carbon emissions for major greenhouse gas-intensive sectors. Recent changes have broadened its scope and anticipated revenues of approximately €40 billion by 2030, bolstering support for the EU's climate goals.

(With inputs from agencies.)