Sept. 22, 2021

The letter was addressed to representatives of the Slovenian Presidency of the EU Council, as well as to the Chairs of European Parliament committees on transport (TRAN), Environment (ENVI) and innovation and energy (ITRE). They are currently debating a major proposal by the EU Commission to allow the EU to meet its climate targets and contribute to the avoidance of the worst effects of climate change globally.

Strong evidence suggests that regulation can be one of the major drivers for a technological innovation becoming mainstream. With the EU Commission having now tabled a “once-in-a-generation” legislative package called Fit for 55, supporting its commitment to reduce net greenhouse gas emissions by at least 55 per cent by 2030, the co-signatories see an opportunity for it to accelerate innovation in the cleantech sector. They also underline the necessity for Europe to remain competitive in the sector.

The letter outlines how tweaks could be introduced to various parts of the legislative package. It advocates for:

• the fund attached to the EU’s emission trading scheme (ETS) to be partly earmarked for the deployment of advanced cleantech projects, rather than lab-level ones, so-called demonstrators;

• the allocation of a share of the same fund as incentives for the creation of a framework where cleantech companies can voluntarily share information about their operations;

• phasing out ETS free allowances as soon as possible, which relieve the EU’s heaviest polluters from part of the effects of the ETS market;

• driving innovation in the buildings renovation supply chain;

• the introduction of regulatory measures to phase-out the sale of polluting products whenever a more efficient and less polluting option is already competitive, notably where it concerns electric vehicles;

• supporting charging infrastructure for electric vehicles, including electric bikes and other two-wheelers.