Commission, Breakthrough Energy Catalyst and European Investment Bank advance climate technology partnership

 At the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), which is being held in Glasgow, the President of the European Commission, Ms Ursula von der Leyen, and the founder of Breakthrough Energy, Mr. Bill Gates, along with the President of the European Investment Bank, Mr. Werner Hoyer, have officially entered into a groundbreaking partnership that will boost investment in critical climate technologies. The signing of the Memorandum of Understanding today follows on from the initial announcement made last June at the Ministerial Meeting of the Innovation Mission.

The partnership between the Commission, the European Investment Bank and Breakthrough Energy Catalyst will mobilize up to € 820 million ($ 1 billion) between 2022 and 2026 to accelerate the deployment and commercialization of innovative technologies that will contribute to achieving the objectives of the Green Deal for Europe and the EU's climate objectives for 2030. Each euro of public funds should generate three euros of private funds. Investments will be directed towards a portfolio of high potential projects established in the EU and covering four sectors:

clean hydrogen,

sustainable fuels for aviation,

direct air collection, and

long-term energy storage.

European Commission President Ursula von der Leyen said: “Now is the time to act. The climate challenge requires us to invest in high-risk innovations and to put an end to the “ecological additional cost” associated with the commercialization of new technologies. I can't wait for these technologies to come to market. The EU-Catalyst partnership brings us one step closer to our goal: to make Europe the leading climate neutral continent and the leading continent in terms of climate innovation. It is up to Member States and companies, among others, to embark on the race for climate innovation! ”

The President of the European Investment Bank, Mr Werner Hoyer, said: “To achieve the climate goals of the Paris Agreement, we need a global technological revolution and massive investments in pioneering innovations. The European Investment Bank has solid experience in financing early stage technologies. By promoting the development of these technologies on a larger scale, it also helps to make them more affordable. It is this expertise that we are now using to achieve the EU's ambitious climate goals. I am happy that we can announce today the conclusion of a new partnership with the European Commission and Breakthrough Energy Catalyst which aims to promote the development of the green solutions of tomorrow and to build a green future for all. "

Breakthrough Energy founder Mr. Bill Gates said: “Carbon neutrality will be one of the most difficult things humanity has ever accomplished. Achieving it will require new technologies, new policies and new partnerships between the private and public sectors, on an unprecedented scale. This partnership with the European Commission and the European Investment Bank will help accelerate the spread of climate solutions, which will create clean industries and, for generations to come, job opportunities across Europe. ”

The partnership between the EU and Catalyst will focus on technologies which are known to limit greenhouse gas emissions but which are still too expensive to develop and compete with fossil fuel-based technologies. It will bring together the public and private sectors to invest in large-scale demonstration projects.

Both the European Investment Bank (which will use Commission resources) and Breakthrough Energy Catalyst will provide equivalent amounts of grants and financial investments in these projects. As part of its contribution, Breakthrough Energy Catalyst will mobilize partners to invest in projects and / or buy the green products to which they have given birth.

By supporting these technologies during this phase of the demonstration process and creating a market for these green products, the EU-Catalyst partnership will reduce their "ecological overhead", that is, reduce their costs to a minimum. finally competitive level compared to options based on fossil fuels. The elimination of this additional cost will help accelerate the adoption of green products in the world and ultimately free them from their dependence on public aid mechanisms.

EU funding for the partnership prwill be from Horizon Europe and the Innovation Fund, and will be managed within the framework of InvestEU, in accordance with established governance procedures. Breakthrough Energy Catalyst will mobilize private capital and philanthropic funds, in equivalent amounts, to finance key smart climate technologies and thereby accelerate the transition to sustainable industrial ecosystems in Europe. The EU-Catalyst partnership will be open to national investments from EU Member States through InvestEU or a project. The selection of the first projects should take place in 2022.

European Commission

The European Commission has a range of policies and programs to achieve its climate ambitions. As part of the Green Deal for Europe, the “Adjustment to Target 55” package was adopted in July 2021 with the aim of reducing greenhouse gas emissions by at least 55% by 2030.

EU funding for projects supported under the Commission-Catalyst partnership will be channeled through the InvestEU program and implemented by the European Investment Bank and other interested financial institutions.

For the purposes of this partnership, InvestEU funding will benefit from a guarantee from the Innovation Fund and Horizon Europe, the EU's framework program for research and innovation, with a budget of 95.5 billion euros (2021-2027). While the Horizon Europe program devotes 35% of its budget to climate action, it also supports a series of partnerships that mobilize private funds to face urgent global challenges and to modernize the industry through research and innovation.

The Innovation Fund is a new financing instrument which, by supporting the demonstration of innovative low-carbon technologies, should enable the EU to honor the commitments it has made in all economic sectors in the framework of the Paris Agreement and achieve its climate objectives.

The Commission is supporting, with Breakthrough Energy Catalyst, the second phase of the Innovation Mission, which seeks to bring about a decade of action and investment in research, development and demonstration with a view to making clean energy affordable, attractive and accessible to all.

European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union, of which the Member States are the shareholders. It provides long-term financing for viable investments, in order to promote the achievement of the objectives of EU policies, in Europe and elsewhere. Active in some 160 countries, the European Investment Bank is the world's leading multilateral funder for climate action projects.

The EIB Group recently adopted the “EIB Group roadmap in its role as a climate bank”, which should enable it to execute its ambitious program aimed at mobilizing EUR 1 trillion of investments for action in climate and environmental sustainability over the decade up to 2030 and to increase to more than 50%, by 2025, the share of EIB financing devoted to climate action and environmental sustainability . This roadmap also foresees that, from the start of 2021, all new EIB Group operations will be aligned with the objectives and principles of the Paris Agreement.

Breakthrough Energy

Founded by Bill Gates, the Breakthrough Energy network aims to help humanity avoid climate catastrophe. Through investment vehicles, philanthropic programs and, among other activities, the promotion of political action, Breakthrough Energy is dedicated to developing the technologies the world needs to achieve a level of zero net emissions. here in 2050.

Breakthrough Energy Catalyst is a groundbreaking program designed to accelerate the development and deployment of essential climate technologies that will serve as the foundation for a carbon-free economy. Catalyst aims to bring together the public and private sectors to fund commercial-stage demonstration projects of critical decarbonization solutions. It will thus fill the financing gap from which these technologies suffer at the start of their deployment and will provide a structure allowing them to speed up their commercialization. Catalyst will start by funding projects related to four technologies: green hydrogen, sustainable fuels for aviation, direct air capture and long-term energy storage. Catalyst intends to eventually extend the same framework to other much needed innovations, such as low carbon steel and cement.will be from Horizon Europe and the Innovation Fund, and will be managed within the framework of InvestEU, in accordance with established governance procedures. Breakthrough Energy Catalyst will mobilize private capital and philanthropic funds, in equivalent amounts, to finance key smart climate technologies and thereby accelerate the transition to sustainable industrial ecosystems in Europe. The EU-Catalyst partnership will be open to national investments from EU Member States through InvestEU or a project. The selection of the first projects should take place in 2022.

European Commission

The European Commission has a range of policies and programs to achieve its climate ambitions. As part of the Green Deal for Europe, the “Adjustment to Target 55” package was adopted in July 2021 with the aim of reducing greenhouse gas emissions by at least 55% by 2030.

EU funding for projects supported under the Commission-Catalyst partnership will be channeled through the InvestEU program and implemented by the European Investment Bank and other interested financial institutions.

For the purposes of this partnership, InvestEU funding will benefit from a guarantee from the Innovation Fund and Horizon Europe, the EU's framework program for research and innovation, with a budget of 95.5 billion euros (2021-2027). While the Horizon Europe program devotes 35% of its budget to climate action, it also supports a series of partnerships that mobilize private funds to face urgent global challenges and to modernize the industry through research and innovation.

The Innovation Fund is a new financing instrument which, by supporting the demonstration of innovative low-carbon technologies, should enable the EU to honor the commitments it has made in all economic sectors in the framework of the Paris Agreement and achieve its climate objectives.

The Commission is supporting, with Breakthrough Energy Catalyst, the second phase of the Innovation Mission, which seeks to bring about a decade of action and investment in research, development and demonstration with a view to making clean energy affordable, attractive and accessible to all.

European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union, of which the Member States are the shareholders. It provides long-term financing for viable investments, in order to promote the achievement of the objectives of EU policies, in Europe and elsewhere. Active in some 160 countries, the European Investment Bank is the world's leading multilateral funder for climate action projects.

The EIB Group recently adopted the “EIB Group roadmap in its role as a climate bank”, which should enable it to execute its ambitious program aimed at mobilizing EUR 1 trillion of investments for action in climate and environmental sustainability over the decade up to 2030 and to increase to more than 50%, by 2025, the share of EIB financing devoted to climate action and environmental sustainability . This roadmap also foresees that, from the start of 2021, all new EIB Group operations will be aligned with the objectives and principles of the Paris Agreement.

Breakthrough Energy

Founded by Bill Gates, the Breakthrough Energy network aims to help humanity avoid climate catastrophe. Through investment vehicles, philanthropic programs and, among other activities, the promotion of political action, Breakthrough Energy is dedicated to developing the technologies the world needs to achieve a level of zero net emissions. here in 2050.

Breakthrough Energy Catalyst is a groundbreaking program designed to accelerate the development and deployment of essential climate technologies that will serve as the foundation for a carbon-free economy. Catalyst aims to bring together the public and private sectors to fund commercial-stage demonstration projects of critical decarbonization solutions. It will thus fill the financing gap from which these technologies suffer at the start of their deployment and will provide a structure allowing them to speed up their commercialization. Catalyst will start by funding projects related to four technologies: green hydrogen, sustainable fuels for aviation, direct air capture and long-term energy storage. Catalyst intends to eventually extend the same framework to other much needed innovations, such as low carbon steel and cement.