Designing a business case for climate technology in Europe

The policy brief recommends that Europe move beyond a heavy reliance on renewable energy and electrification by supporting a broader suite of technologies, including nuclear energy and carbon capture and storage. It analyses the U.S. policy framework—specifically the Energy Act of 2020, the Infrastructure Investment and Jobs Act (IIJA), and the Inflation Reduction Act (IRA)—as a model for bridging the gap between R&D and large-scale commercial 'take-off'. Key recommendations for the EU include streamlining regulations, providing 'self-activating' incentives, and proactively planning shared infrastructure for CO2 and hydrogen to reduce investor risk and accelerate deployment.

• Over-reliance on a single decarbonisation pathway, such as focusing primarily on electrification and renewable energy, increases the risk of failing to meet climate targets.
• The U.S. policy approach utilizes a tiered structure to move technologies toward a 'take-off point'—the stage where deployment is extensive enough to scale globally. This is achieved through the Energy Act of 2020 (focusing on RD&D with over $35 billion in federal investment), the IIJA (providing demonstration grants and infrastructure support), and the IRA (using tax credits for wide-scale deployment).
• To lower costs and accelerate commercialisation, Europe needs to bridge the 'valley of death' between demonstration and expansion. While the EU is strong in laboratory research, commercialisation often occurs in other markets because funding frequently relies on slow bureaucratic grants rather than flexible instruments like contracts for difference or low-interest loans.
• Shared enabling infrastructure, such as CO2 pipelines and hydrogen transport, creates a 'chicken-and-egg' problem where neither the capture facility nor the transport network is built because the other is missing. The U.S. addresses this by investing in the full value chain; for example, the IIJA provides $2.1 billion in low-interest loans and grants for CO2 transport infrastructure.
• European policymakers should implement 'self-activating' policy instruments—incentives based on clear, pre-existing criteria that do not require case-by-case government approval—to increase investor certainty and reduce project deployment cycles.

APA

Stoyanova, S., Beck, L., & Thompson, J. (n.d.). Designing a business case for climate technology in Europe. Clean Air Task Force. https://cdn.catf.us/wp-content/uploads/2023/05/23113557/designing-business-case-climate-technology-europe.pdf?_gl=1*15i0z4u*_gcl_au*MTM5NTc5NzQ1LjE2OTk2OTMxMzY.*_ga*R0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuNDI5OTgxMTUzLjE2ODkzNTI0OTU.*_ga_88025VJ2M0*MTcwMDUyNzg2OC44My4xLjE3MDA1MjgwOTkuMC4wLjA.*_fplc*ZkxhQWg5Z2tkcnVNaFdmNFZDRURLQWN4SHdhSCUyQkxkVjVVeENCcXg3N2RDcFBzdm5hU2RHZnJ6OWxQJTJGdXFwQTNFJTJGUDN2UnlRSU13MHRvTVhOWEtuaGtPU1BndFVDTm92Zmt2NUhzQ2YxUkFBTFM4JTNE

Chicago

Stoyanova, Sonia, Lee Beck, and John Thompson. Designing a business case for climate technology in Europe. Clean Air Task Force, n.d. https://cdn.catf.us/wp-content/uploads/2023/05/23113557/designing-business-case-climate-technology-europe.pdf?_gl=1*15i0z4u*_gcl_au*MTM5NTc5NzQ1LjE2OTk2OTMxMzY.*_ga*R0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuNDI5OTgxMTUzLjE2ODkzNTI0OTU.*_ga_88025VJ2M0*MTcwMDUyNzg2OC44My4xLjE3MDA1MjgwOTkuMC4wLjA.*_fplc*ZkxhQWg5Z2tkcnVNaFdmNFZDRURLQWN4SHdhSCUyQkxkVjVVeENCcXg3N2RDcFBzdm5hU2RHZnJ6OWxQJTJGdXFwQTNFJTJGUDN2UnlRSU13MHRvTVhOWEtuaGtPU1BndFVDTm92Zmt2NUhzQ2YxUkFBTFM4JTNE.

Wikipedia

{{cite report |last1=Stoyanova |first1=Sonia |last2=Beck |first2=Lee |last3=Thompson |first3=John |title=Designing a business case for climate technology in Europe |publisher=Clean Air Task Force |url=https://cdn.catf.us/wp-content/uploads/2023/05/23113557/designing-business-case-climate-technology-europe.pdf?_gl=1*15i0z4u*_gcl_au*MTM5NTc5NzQ1LjE2OTk2OTMxMzY.*_ga*R0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuNDI5OTgxMTUzLjE2ODkzNTI0OTU.*_ga_88025VJ2M0*MTcwMDUyNzg2OC44My4xLjE3MDA1MjgwOTkuMC4wLjA.*_fplc*ZkxhQWg5Z2tkcnVNaFdmNFZDRURLQWN4SHdhSCUyQkxkVjVVeENCcXg3N2RDcFBzdm5hU2RHZnJ6OWxQJTJGdXFwQTNFJTJGUDN2UnlRSU13MHRvTVhOWEtuaGtPU1BndFVDTm92Zmt2NUhzQ2YxUkFBTFM4JTNE |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stoyanovanddesigning, author = {Stoyanova, Sonia and Beck, Lee and Thompson, John}, title = {{Designing a business case for climate technology in Europe}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2023/05/23113557/designing-business-case-climate-technology-europe.pdf?_gl=1*15i0z4u*_gcl_au*MTM5NTc5NzQ1LjE2OTk2OTMxMzY.*_ga*R0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuNDI5OTgxMTUzLjE2ODkzNTI0OTU.*_ga_88025VJ2M0*MTcwMDUyNzg2OC44My4xLjE3MDA1MjgwOTkuMC4wLjA.*_fplc*ZkxhQWg5Z2tkcnVNaFdmNFZDRURLQWN4SHdhSCUyQkxkVjVVeENCcXg3N2RDcFBzdm5hU2RHZnJ6OWxQJTJGdXFwQTNFJTJGUDN2UnlRSU13MHRvTVhOWEtuaGtPU1BndFVDTm92Zmt2NUhzQ2YxUkFBTFM4JTNE}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }