The Recovery and Resilience Facility (RRF) entered into force in February 2021 with a total budget of EUR 648 billion, including EUR 357 billion in grants and EUR 291 billion in loans. The facility aims to mitigate the economic and social impacts of the COVID-19 pandemic and support Europe through green and digital transitions.
To get support from the facility, EU governments had to produce national recovery and resilience plans outlining reforms and investments to be implemented by end-2026. The plans needed to allocate at least 37% and 20% of the support to green and digital measures respectively.
How much is available for carbon removal?
The RRF can support investment around six pillars, including the green transition, for which it has the potential to support technologies such as carbon capture and storage (CCS), carbon capture and utilisation (CCU) and carbon dioxide removal (CDR). However, no explicit mention of CDR is made in the guidance documents produced by the EU Commission.
Several funding opportunities stemming from national recovery and resilience plans were relevant for CCS, including:
- In Belgium, EUR 95 million to build a ‘CO2 and hydrogen backbone’;
- In Croatia, EUR 658 million to modernise energy infrastructure, invest in advanced biofuels and renewable hydrogen production and implement innovative CCS projects;
- In Denmark, EUR 27 million for a subsidy scheme to support CO2 storage sites in the North Sea;
- In Finland, EUR 136 million for low-carbon hydrogen and CCS;
- In Greece, EUR 150 million for a CO2 storage project called Prinos.
In its April 2024 guidance document, the Commission stressed that national plans should focus on supporting the development of critical technologies recognised by the Strategic Technologies for Europe Platform (STEP), which includes CCS.
On the horizon
Governments can request payment once they reach key targets and milestones, up to twice a year. At the end of April 2024, EUR 232 billion had been distributed to member states. The facility is operational until 31 December 2026. Member states can also submit changes to their recovery and resilience plans.
Technology readiness level support
Member states can choose which types of projects they support. Therefore, the range of technology readiness levels (TRLs) is wide.
Eligibility
Member states define the criteria under which grants are awarded.
Funding rates
Member states define the maximum funding rate in line with the Commission’s recommendations.