EU carbon price drop threatens funding for green tech
![EU carbon price drop threatens funding for green tech](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/04/2658.jpg)
The European Union faces a potential shortfall in funding for green technologies as the price of carbon permits dropped significantly this year, affecting the EU Innovation Fund and low-carbon projects.
The decline in carbon prices, attributed to reduced emissions and increased renewable energy generation, has led to a loss of billions of euros in potential revenues for green investments. The EU Innovation Fund, crucial for nascent technologies like hydrogen and carbon capture, is at risk of falling short of its projected 40 billion euro target for the decade due to lower-than-expected carbon prices.
Analysts predict a rebound in carbon prices in the coming years, but uncertainties remain, impacting the feasibility of low-carbon projects and prompting concerns about the competitiveness of European industries.
Despite challenges, companies like Holcim highlight the importance of the Innovation Fund in driving investments in low-carbon initiatives. However, the oversubscription of the fund underscores the urgent need for stable and sufficient funding to support the transition to a greener economy in Europe.
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