Page 32 - European Energy Innovation - summer 2019 publication

32 Summer 2019 European Energy Innovation

FINANCING CLEAN INNOVATION

A tailored framework to
leverage investment in clean
innovation and deliver carbon
neutrality

By Adeline Rochet, European Climate Foundation
Over the past decade, the
idea of carbon neutrality Strategy for Eu decarbonization. The demonstrate that we can do it, and
has gone a long way – consensus around a net-zero EU suggest pathways that could be
seen as a radical utopia economy in 2050 is now stronger successful. The question has shifted
than ever. No one challenges from “whether” to “how”: evidence
show that the answer is with more
in the early 2010’s, it is now endorsed the fact that this will require money, adequately distributed.

by more and more European leaders, extensive, difficult, hard to achieve All studies, all pathways have at least
one thing in common: if we are to be
be it in governments or successful transformation, and the detailed on the right track at the end of the
decade, then we need to innovate
companies, and the European roadmap to full decarbonization is more. Widespread innovation will
be required in clean technologies,
Commission sees it as a way forward still unclear. But the fact is, more but also in manufacturing process,
in services, in business models, in
in the scenarios of the Long Term and more reports and studies consumption patterns, in all sectors
of the economy (energy, industry,
Climate relevant R&I investments transports, buildings, agriculture…).

(€billions) According to a report published
this autumn,1 the “innovation
NET-ZERO INNOVATION TARGET TO gap” between existing tools and
INVESTMENT GAP: DELIVER NET what we need to reach carbon
ZERO 2020 neutrality requires an additional
potentially filled with 1/3 in investments every year, both
1/3 public and 2/3 ? from public and private sources.
private sources The need to increase investment
~€6.8–8.8* will be particularly instrumental in
Other public ? the coming decade, to ensure that
sector R&I Europe has all the cards in hand
investments in 2030, to then deploy and scale
up innovation that will deliver the
Central EU R&I €4.3 zero-carbon economy by 2050. The
investments message of the report is clear: we
need to invest more!
Private sector €7.2 ~€7.2–10*
R&I investment European Union has world class
scientists and research centers,
2017 2021 – 2027 high quality infrastructures, among
Projected many assets to be a clean innovation

*Based upon best expert estimates at the time of publication
Source: Funding Innovation to Deliver EU Competitive Climate Leadership,
Peter Sweatman for Climate Strategy and partners

www.europeanenergyinnovation.eu