The European Commission announced on June 2nd a pioneering partnership with Breakthrough Energy Catalyst that will invest $1 billion in clean energy. The green initiatives include carbon capture technology, green hydrogen produced with renewable energy, sustainable aviation fuels, and long-duration energy storage.
Breakthrough Energy – Bill Gates’ venture fund aiming to mitigate climate change will match the investment provided by the EU. The goal is together to raise 820 million euros, or $1 billion, from 2022 to 2026 for commercial demonstration projects for low carbon technologies. Those technologies are critical for hard to decarbonize sectors like aviation and shipping that still count on low carbon fuels.
“With our European Green Deal, Europe wants to become the first climate-neutral continent by 2050…This is why I’m glad to join forces with Breakthrough Energy. Our partnership will support EU businesses and innovators to reap the benefits of emission-reducing technologies and create the jobs of tomorrow,” said Ursula von der Leyen, President of the European Commission.
“Through this partnership, Europe will lay solid ground for a net-zero future in which clean technologies are reliable, available, and affordable for all,” said Bill Gates, Founder of Breakthrough Energy.
The climate change investment will include grants and other financial instruments. The EU contribution will come from its budget and the EU Innovation Fund, consisting of cash from sales of permits from the EU Emissions Trading Scheme. Breakthrough Energy will commit private capital and philanthropic funds to finance the selected carbon capture investment and green projects.
The EU has been demonstrating for a long time its commitment to decarbonizing the economy. Bill Gates has also shown support in clean energy investment and praises initiatives that reduce emissions like carbon capture technology. Together they aim to speed up the process of cost reduction for large-scale decarbonization projects and achieve a net zero economy by 2050.