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The bloc’s Innovation Fund is financed through the carbon trading scheme, according to which more emissions mean more funding for green projects
With the European Union’s emissions trading system kicking into high gear, the EU Commission has announced it will fund 17 new sustainable projects in nine countries to the tune of 1.8 billion euros. The countries are Finland, Bulgaria, Poland, Sweden, Norway, France, Germany, the Netherlands and Iceland.
The money will come from the third round of projects applying for the Innovation Fund – dedicated to decarbonising the bloc’s economy. This is the fund’s largest round to date.
The Innovation Fund is financed through the EU’s carbon trading scheme and Brussels lawmakers expect it should generate around 38 billion euros by 2030. It is the main tool for realising projects in the Fit for 55 package and solving the emissions issue.
Moreover, this cluster of laws shows EU politicians attempt to create a circular funding system, where polluters fund green projects. In practice, this means that more CO2 emissions mean more funding for green projects, while fewer emissions mean less need for massive sustainability build-ups.
The projects selected in the third wave of funding cover wide carbon-intensive sectors, like manufacturing, hydrogen, waste management, renewable energy and carbon capture. According to a statement by the Commission, collectively, they could save up to 136 million tons of CO2 in their first decade of operations alone.
There are four projects in four countries - Bulgaria, Poland, France and Germany - trying to deploy decarbonisation measures in cement manufacturing. In Germany, the project calls for deploying an oxyfuel carbon capture process, that would generate raw materials for synthetic methanol manufacturing.
In Poland and Bulgaria, the projects involve an end-to-end capture, liquefaction and storage process from cement factories, while the waste product will be stored offshore. The Bulgarian project will use a depleted natural gas field in the Black Sea.
In the field of chemical production, a Finnish project will convert plastics into feedstock for refineries. In Sweden, meanwhile, one project would convert CO2 residue into methanol, while another will manufacture polyester textile alternatives from pulp.
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