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Draghi Report Calls on a Joint Plan for Decarbonization and Competitiveness of Europe via All Available Technologies and Solutions, Including CCUS

14th September 2024

On 9 September, the long-awaited report “The future of European competitiveness” authored by the Former European Central Bank President, Mario Draghi, was released, presenting a series of recommendations for the European Commission to support EU’s competitive strength. 

Among the main areas for action identified in the report to stimulate sustainable growth is the need to accelerate the decarbonization via a cost-efficient and technology-neutral approach, leveraging all available technologies and solutions, including CCUS. The report highlights, however, that this will require substantial investment from both the public and the private sector, as well as reducing permitting delays for installations.  

In particular, CCUS is featured in the report as a tool able to avoid the lock-in of fossil-fuel power generation while increasing the flexibility of the energy system, as well as to support the decarbonisation of energy intensive industries. 

In order to fill the financial gap, the report suggests several measures, including the utilisation of earmarked revenues from European Trading System (ETS) to support the deployment of CCUS in those sectors covered by the EU ETS. The report also points out that decarbonisation funding should rely on financial instruments which are common, competitive and simple, such as Carbon Contracts for Differences (CCfDs) or competitive auctions by the European Hydrogen Bank.  

Finally, the report also highlights the leading role played by the EU in carbon capture technologies, recognising that over half of global investments in such technologies in 2023 took place in the Union. However, developing the CO2 transport and storage infrastructure remains one of the main hurdles to the scale-up of the technology. Alongside having the CO2 infrastructure components in place, further research and innovation is also needed to ensure that CCUS among other technologies could contribute to decarbonising critical sectors of the economy cost-effectively. 

The report follows the announcement of the political guidelines for the next European Commission 2024−2029, presented by the re-elected European Commission President Ursula von der Leyen to the European Parliament in July 2024.  

The findings of the report will feed into the work that the Commission intends to undertake to deliver a new plan for Europe’s sustainable prosperity and competitiveness, including the development of a Clean Industrial Deal. As part of the latter, the Commission plans to scale-up and prioritise investment in clean energy infrastructure and technologies, including low-carbon technologies and transport infrastructure for captured CO2. 

The new Clean Industrial Deal will be presented in the first 100 days of the new Commission mandate. 

Read more about the report here. 

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