EU funding for CCS likely to be delayed

The allocation of about €265m in EU funding for the development of carbon capture and storage (CCS) technology is likely to be postponed, according to a draft decision presented to member state representatives at a meeting on Thursday.

But 23 renewable energy projects may be in line to receive funding under the NER300 scheme, which is financed through the sale of carbon allowances.

The draft decision submitted at the EU’s Climate Change Committee meeting in Brussels indicates that steelmaker ArcelorMittal’s decision to withdraw its CCS project, the frontrunner for the NER300 funding, may have come too late for the money to be reallocated to other low-carbon projects.