Research Report / Energy
Public Support for the Financing of RD&D Activities in New Clean Energy Technologies (THINK Topic 1)
This report was produced as part of the THINK project. Existing demand-pull measures, namely carbon pricing and the Renewables Directive, will be insufficient to deliver an adequate and timely level of private RD&D in new clean energy technologies. Thus, in order to reach the EU 2020 and 2050 climate objectives, there is a need for direct public support to innovation. Public funds need to be spent wisely, given their limited availability. This report contributes a discussion on (i) how to build a balanced portfolio of RD&D projects; (ii) how to choose among financing instruments; and (iii) how to design public support to minimize the risk of ‘funding failure’.
THINK Topic 1 was led by Prof. David Newbery.