With the last of the first tranche of NER300 allowances now sold, Jos Delbeke, Director General of DG Climate Action, was in a position to disclose at the 7th General Assembly of the Zero Emissions Platform that the sum raised is 1500 M EUR (net of the fees of the EIB and its carbon market intermediaries). [UPDATE 12 Nov 2012: the EIB confirms the size of the pot is roughly 1500 M EUR, but adds that this is at the “conservative” end of an implied range.] The 2009 Emissions Trading Directive constrains the funding requests to 15% of the total projected value of the net NER300 pot over both calls, allowing projects to request “a maximum of 337 M EUR each from NER300” (Delbeke).
The EC made this limit clear in letters it sent yesterday to Member States having projects in the RES Group or CCS Group. It expects a reply to its letters on or before 15 October, where Member States will confirm, with no room for negotiation, the project(s) they are each keeping in the competition. For these projects, they will confirm that they will be built according to the specifications in the Application Forms and will receive the national funding set out in the Submission Forms. Chris Davies, an MEP with a proven interest in CCS, took the floor to say the 15 October deadline would be extended to four weeks (“i.e. 27 days from now”) “in exceptional circumstances”. [UPDATE: on 10 Oct the FT reported that 6 MS would use this deadline extension.]
At the Climate Change Committee’s monthly meeting on 15 November, a yes/no vote will be held on the portfolio of confirmed projects to fund in the first call. The EC will issue Award Decisions before the end of the year enabling the project to receive funding as soon as it signs a ‘Legally Binding Instrument‘ committing it to certain knowledge-sharing and possibly performance obligations.
Delbeke said, “As soon as the first call is out of the way then we go as speedily as possible into the second call because we are all aware of the deadline of end-2015 [to commit funding to projects].” More information on the second call is available here.
Marie Donnelly, Director for Renewables, Research and Innovation and Energy Efficiency in DG Energy said it would be “unconscionable for projects funded by EEPR, NER300 and the British government not to report data on their performance using the same template”, which in practice means the template used by the EEPR projects as those started first (more info: Knowledge sharing). She expected “two to three CCS projects to be funded in the first NER300 call”.