EU sets stage for low-carbon investments - October 07, 2009
The European Commission has proposed investing an additional €50 billion into a new research and development programme for low-carbon energy over the next decade, ramping up annual investments from the current €3 billion to €8 billion annually.
The proposal lays out funding goals in six sectors - wind, solar, nuclear, bio-energy, electricity grids and carbon capture and storage, while creating a new "Smart Cities Initiative" focusing on urban energy efficiency. Solar came out on top with €16 billion, followed by CCS at €13 billion. For a quick summary of investments, check Reuters.
The plan sounds good but is missing one thing: Money. The commission readily acknowledges that it can't foot the entire bill itself, meaning "public and private sectors at national and EU level" will need to step up to make it a reality. Indeed, the Wall Street Journal reports EU Commissioner Janez Potocnik saying that most of the money will need to come from the private sector.
Response to the plan has generally been positive, despite some questions about priorities. The European Wind Energy Association wonders why CCS and nuclear received more money than wind, which is ready to go. Along similar lines, the European Photovoltaic Industry Association suggests the commission would be wise to put more resources into clean energy deployment.
Policymakers, researchers and business representatives will discuss the proposal later this month at the European Energy Technology Summit in Stockholm.
