The European Commission on Tuesday allocated 4.6 billion euros to promote “clean” technologies such as the production of batteries for electric vehicles or the development of renewable hydrogen under the Innovation Fund.
Of this amount, €3.4 billion will be invested through two calls for proposals to accelerate the deployment of innovative decarbonisation technologies in Europe, including batteries for electric vehicles.
Furthermore, Brussels will launch the second auction of the European Hydrogen Bank to accelerate the production of renewable hydrogen in the european Economic Area (EEA) with a budget of 1.2 billion euros from EU funds, to which another 700 million euros will be added from three Member States.
Both the calls for proposals adn the auction are financed by the Innovation Fund, using revenue from the EU Emissions trading System (ETS).
The three calls include new resilience criteria to relaunch European industry. The battery tender and hydrogen bank auction will also include specific resilience criteria to protect Europe from single-supplier dependence
Likewise,the Commission and the European Investment Bank (EIB) launched this Tuesday a new partnership to support investments in the EU’s battery production sector,which will involve an additional contribution of 200 million euros,in the form loan,InvestEU program.
The money will go to support innovative projects along the European battery manufacturing value chain to address financial challenges by enabling further EIB risk debt operations over the next three years.
These incentives aim to accelerate electrification and in particular the production of low-emission vehicles. In Spain, sales of electrified vehicles (electric and plug-in hybrids, including passenger cars, quadricycles, commercial and industrial vehicles and buses) fell by 11.3% in november,with 11,458 sales. Of the total sales,it accounted for 11.37% of the entire market in November, according to data provided by ANFAC.
Through the penultimate month,electrified vehicle sales accumulated 109,985 units,2.8% less than the same period last year. In the cumulative annual figure, the total share increases slightly to 9.92%, although still 9 tenths less than last year. ANFAC underlines the need to increase sales and recalls that the MOVES III Plan remains in force until the end of the year with aid for the purchase of electrified vehicles and a deduction of up to 15% of the personal income tax for the purchase of this type of vehicles.
What are the key challenges facing the European clean technology sector amidst these new investments?
Interview: European Clean Technology Investments with dr. Elena Schneider, Renewable Energy Expert
Time.news Editor: thank you for joining us today, Dr. Schneider. The european Commission’s recent allocation of €4.6 billion to promote clean technologies, particularly focusing on battery production for electric vehicles and renewable hydrogen, is significant. Can you explain the importance of this funding?
Dr. Elena Schneider: Absolutely, and thank you for having me.This €4.6 billion allocation marks a pivotal step for the European Union in advancing its decarbonization goals. By investing €3.4 billion through two calls for proposals, the EC is essentially accelerating the deployment of innovative technologies necessary for reducing greenhouse gas emissions. This is particularly crucial as Europe aims to meet its ambitious climate targets.
Time.news Editor: In the context of the ongoing energy transition, what role do you see renewable hydrogen playing in this investment strategy?
Dr. Elena Schneider: Renewable hydrogen is a game changer. The allocation of €1.2 billion for the European Hydrogen bank, coupled with additional funds from EU Member States, aims to augment hydrogen production considerably. This transition supports the shift away from fossil fuels, especially in sectors that are hard to electrify. By creating a strong hydrogen economy,we enhance energy resilience across Europe while addressing climate change.
Time.news Editor: The emphasis on resilience criteria in the calls for proposals is noteworthy. How do these criteria affect the industry?
Dr. Elena Schneider: Resilience criteria are essential for mitigating risks associated with single-supplier dependencies. By establishing such criteria, the European Commission is incentivizing diversified supply chains, which is vital for the sustainability of clean technology projects.This approach not only fosters innovation but also ensures that Europe’s energy supply is robust against external shocks.
Time.news Editor: It’s engaging to note the partnership between the European Commission and the European Investment Bank aimed at boosting the battery production sector. What impact will this partnership have?
Dr. Elena Schneider: this partnership is critical for addressing the financial challenges that frequently enough stymie innovation in the battery sector. with an additional €200 million allocated through the InvestEU program, we can expect to see significant support for innovative projects along the battery manufacturing value chain. This investment will enable greater risk tolerance by the EIB, which is crucial for startups and SMEs looking to innovate in a competitive market.
Time.news Editor: The sales data of electrified vehicles in Spain shows a decline, despite these advances. What are your thoughts on the current market situation and potential implications for the industry?
Dr. Elena Schneider: The decline in sales of electrified vehicles, particularly the 11.3% drop reported in November, highlights the challenges within the market. However, the situation can improve with continued support mechanisms like the MOVES III Plan, which offers financial incentives for purchasing electrified vehicles. it’s essential for consumer awareness to grow regarding the benefits of these vehicles,along with ensuring that adequate infrastructure,such as charging stations,is in place.
Time.news Editor: What advice would you give to industry stakeholders looking to navigate these changes?
Dr. Elena Schneider: Industry stakeholders should remain agile and proactive. Engaging in innovation and developing resilient supply chains is essential. Collaborating with government initiatives and utilizing available funding can provide significant advantages. Additionally, investing in consumer education about electrified vehicles can drive demand, further supporting the transition toward a enduring energy future.
Time.news editor: Thank you, Dr. Schneider, for sharing your insights on this vital topic. Your expertise sheds light on the implications of these significant investments and the future of clean technologies in Europe.
Dr. Elena Schneider: Thank you for the opportunity to discuss this vital issue. It’s a crucial time for our industry, and I look forward to the advancements that will come from these investments.
