EU's CCS Efforts Face Challenges, Commission Vows Better Accountability
The EU's efforts to promote Carbon Capture and Storage (CCS) technology have faced significant challenges, with the NER300 fund failing to support any projects due to strict criteria and lack of support from participating countries. Meanwhile, several CCS projects were terminated early, and another in the Netherlands has an unused facility.
The Commission's report on the matter partly accepted recommendations to improve accountability for unspent funds in the upcoming Innovation Fund. This follows the discovery that nearly €500 million in unspent NER300 funds will be used to top up European Investment Bank projects, despite initial rules stating it should be reimbursed to member states.
CCS is seen as one of the few options to address emissions from heavily carbon-intensive process industries like steel and cement. However, EU-funded efforts to boost CCS technology uptake have largely failed due to lack of coordination and long-term strategies. Only one CCS project funded under EEPR in Spain is currently operating, but it's not of commercial size. Four CCS projects were terminated early, and another in the Netherlands has an unused facility.
Market volatility, including a plummeting carbon price, also affected the effectiveness of CCS projects. The Commission will replace NER300 with the Innovation Fund in 2021, aiming for better project selection and flexibility.
The Commission's report highlights the need for improved accountability and better project selection in future funding efforts. Despite the challenges faced by CCS projects, the technology remains crucial for reducing emissions in carbon-intensive industries. The upcoming Innovation Fund aims to address these issues and support more successful CCS projects.
