Call to help energy-intensive manufacturing industries reduce CO2 emissions

The European Union announced a grant scheme for projects to help energy-intensive manufacturing industries that are facing up to significant additional costs for green house gas emissions when the revised EU Emissions Trading Scheme comes into force on 1 January 2013, to modernise production methods and cut emissions.

The Commission wants to fund sector specific R&D projects to be carried out by a consortium of companies in each sector, with the EU providing grants of up to 75 per cent of the cost.

Commission Vice-President Antonio Tajani, who is responsible for industry and entrepreneurship said that while Europe needs to tackle climate change, it cannot renounce industrial production. “Our initiative intends to help industry to adapt and modernise, becoming more energy efficient and competitive.”

Typical innovation measures include a switch to alternative fuels, the development of abatement techniques, or the wider deployment of best practice. The programme will be run in two stages with the first stage from 2011-2013 deploying existing short-term measures for reducing CO2 production, which can be directly implemented;

In the second stage from 2014 -2020) longer-term measures which spur further progress and possible breakthroughs, but which require further validation prior to full-scale industrial implementation will be supported.

The Emissions Trading Scheme is intended to drive investment into low-carbon technologies by putting a price on each tonne of greenhouse gases emitted and introducing the principle of auctioning of emission allowances.

While new low carbon production technologies and techniques for energy-intensive material processing industries are being developed through the EU’s Technology Platforms and Lead Market Initiatives, more help is needed to underpin further public-private collaboration across Europe to support adoption of these technologies.

The Commission has published the 2011 Call for Proposals on its website. The deadline for submission of proposals submitted under the current 2011 Call for Proposals is the 30 August 2011.

This call seeks proposals for a first batch of three projects to be started in 2011. The projects are to be carried out by consortia of industrial stakeholders, possibly in partnership with public or private organisations. Two further calls for proposals for a second and a third batch of first stage projects are expected to be published in 2012 and 2013.