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Designing a €100bn Industrial Decarbonisation Bank to Deliver Operating Projects
The policy brief argues that the proposed €100 billion Industrial Decarbonisation Bank (IDB) must move beyond fragmented grants to a coordinated system of carbon contracts for difference (CCfDs), project development support, and shared infrastructure funding. It highlights a significant delivery gap in existing EU programs, noting that only 16 of 208 Innovation Fund grant agreements had entered operation by June 2025. To resolve this, the author recommends technology-neutral auctions with sector-specific caps, two-way CCfD settlements referenced to EU ETS prices, and the sequencing of infrastructure delivery to align with industrial final investment decisions (FID).
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Document type: Policy brief