Sep 16 2016

European Commission gently promoting an increase in the Innovation Fund pot beyond its proposal

***UPDATE 27 Jun 2017: Commissioner Cañete, participating in today’s trilogue meeting, reportedly says he would like an agreement on the size of the Fund to be found between the Council’s (450 M EUA) and Parliament’s (650 M EUA) positions.***

***UPDATE 12 Jun 2017: Director General Jos Delbeke says of the negotiations between the European Parliament and Council on the size of ETS Innovation Fund, “With good winds we could get higher amounts than 450 M EUA. It would not be the European Commission standing in the way.” He was speaking at the event Final event: Towards the ETS Innovation Fund.***

***UPDATE 13 Feb 2017: Commissioner Cañete tells the European Parliament, “Parliament is discussing to send a clear signal on the need to boost the Innovation Fund for the benefit of European companies and to ensure that the Modernisation Fund spurs decarbonisation in lower-income Member States. When looking at these funds we need to be mindful of their effects on Member States auction revenues and favour elements that would bring the Council and Parliament together”. To recall, the European Parliament called for the allowances to come from the part of ETS allowances that are auctioned, thus depriving the Member States of revenue.

Later in the plenary debate, Jutte Guteland and Bas Eickhout drew attention to the idea of more money for the Innovation Fund.***

Judge for yourself from the quotes below, all made in the last three months. The Commission tends not to draw attention without further comment to amendments it doesn’t like:

9 June

Commissioner Cañete at the High Level Roundtable on low carbon innovation: “[Our proposal] comes with 450 million allowances and I note that both rapporteurs in Parliament have put forward amendments that would see even more allowances.”

20 June

Commissioner Cañete at Environment Council: “Both rapporteurs see the need to increase the endowment of the Innovation Fund from the current 450 M EUA to speed up Europe’s low-carbon transition. That represents a significant amount of money.”

12 July

DG CLIMA Director Mary-Veronica Tovšak Pleterski at European Parliament ITRE committee Consideration of Amendments on Federley Draft Opinion: “I note with interest the reflections about potentially increasing the endowment for industrial projects in the innovation Fund.”