The European Parliament adopted an own-initiative report supporting early demonstration of sustainable power generation from fossil fuels, but warns that the measures unveiled by the Commission are "not sufficient to provide the desired incentives". The House calls for a direct financial commitment to ensure that 12 demonstration projects testing the permanent underground storage of CO2 are constructed by 2015.
"The time delay between the potential support from emissions trading from 2013, and the necessary planning and construction phase of demonstration facilities, can be overcome by making financial resources available."Support for financing via EU Emission Trading System from 2013
Funding for the new carbon capture and storage technology (CCS) could be supplemented by providing allowances to operators of CCS technology from the EU's Emission Trading System, the report says. "Incentives for CCS technology production should be increased, by allocating, within the EU ETS, allowances for anticipated CCS technology production with an increase of at least 25 % from 2013."
Similarly, it supports the proposal to award up to 500 million trading allowances to large-scale commercial demonstration projects in the EU.
Additional funding from the Seventh Research Framework Programme
MEPs propose to use the EUR 500 million of the Risk Sharing Finance Facility (RSFF) which was held back until the mid-term review of the Seventh Research Framework Programme. According to the rapporteur, this amount could be supplemented with other funds in cooperation with the European Investment Bank.
Selection criteria for projects
When it comes to selecting storage sites, "binding and strict criteria should be set for long-term safety", says European Parliament. It cites the example of "storage under the seabed, which can, in the event of an accident, endanger marine ecosystems". This could have implications for the UK, which would have the option of storing large quantities of CO² under the North Sea.
The report also strongly recommends that the 12 demonstration projects have a minimum output of 180 Mega Watts, and that the facilities be sited over a maximum geographical spread across the EU.
The report was adopted with 474 votes in favour, 66 against and 20 abstentions.
