KEY MESSAGES
- Eurelectric welcomes the establishment of the Industrial Decarbonisation Bank (IDB), which is likely to be a key enabler for the EU’s overarching climate, growth, and energy security objectives. As such, it can be a key element of the upcoming Electrification Action Plan.
- We recommend building the IDB on three core principles:
- Applying a mitigation hierarchy for decarbonising industrial processes
- Seeking simplicity, transparency and efficiency in the call for applications and funding
- Providing long-term business certainty: credible support based on sufficient budgets and clear investment signals
- Ensure budget allocation builds on a “mitigation hierarchy” based on cost-efficiency. This means prioritising the avoidance and reduction of emissions, coupled with a subsequent reduction of fossil fuels demand, by channelling investment into transformative, proven, cost-effective technologies.
- Electrification first: Ensure that at least 75% of its total 100 bn Euros allocated to electrifying Europe’s industrial sectors, as a step towards doubling the electrification rate to achieve 50% by 2040, and achieve lower system costs for all consumers.
- We call on policymakers to:
- Devise a simple, transparent and efficient design, providing support based on competitive bidding.
- Enable agile upfront support allocation, creating synergies between different EU and Member State level support options.
- Provide early clarity on the funding plan (in terms of sizing, sourcing and timing).
- Ensure that adequate, tailor-made support is provided to consumers with electrification potential. This should consider temperature baskets and various degrees of support for small, medium and large-scale projects.
- Grant national priority status to selected projects to fast-track administrative procedures and permitting, including environmental assessments and thus accelerating their implementation.