OEE: Innovation fund to finance first-of-a-kind projects

The innovation fund provided in a reformed Emissions Trading Scheme must take into account the specific finance needs of the emerging technologies for which it was created, it is stated in Ocean Energy Europe’s press release.

The comment follows the publication of the European Commission’s proposal to amend the Emissions Trading Scheme Directive.

The Innovation Fund is part of the European Commission’s proposal to strengthen the Emission Trading Scheme.

It will renew the NER300 programme which awarded grants to five ocean energy projects, OEE’s press release reads.

Rémi Gruet, CEO of Ocean Energy Europe, said: “We welcome the creation of an Innovation Fund for emerging renewable technologies, as long as the fund is fit for purpose: finfiancing first-of-a-kind projects. The fund will maximise its impact by providing its finance up-front, keeping its processes flexible, and pushing emerging renewables, like ocean energy, on to the marketplace.”

Gruet added that the new Innovation Fund has the opportunity to fix the ‘design flaws’ in the NER300 programme.

“The NER300 was widely considered by stakeholders as a promising tool, hampered by some design flaws. The new Innovation Fund has the opportunity to fix these and become a complete success.

“Shovel ready ocean energy projects around Europe are today being held up by lack of access to adequate finance, common to all emerging sectors. The Innovation Fund could help bridge the investment gap and help create a new industrial sector for Europe, based on renewable energy from its seas. With the right support over the next decade, ocean energy could provide up to 15% of Europe’s electricity by 2050,” concluded Gruet.

The Commission’s proposal will now be discussed by the European Council and European Parliament.

Ocean Energy Europe represents the renewable ocean energy sector in Europe, and is based in Brussels.

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Image: Ocean Energy Europe