EU and Bill Gates Invest $1 Billion in Clean Technology

European Commission and Breakthrough Energy Partner for Clean Tech Investment

The European Commission has forged a collaborative agreement with Bill Gates’ sustainable energy investment platform, Breakthrough Energy, aiming to stimulate new funding for clean technology and sustainable energy initiatives. This partnership intends to unlock up to $1 billion (€820 million) in investments over a five-year period, spanning from 2022 to 2026.

Focus Areas for Investment

EU-funded projects will initially concentrate on four key sectors identified for their potential to significantly reduce regional emissions. These prioritized areas include:

• Green hydrogen production and utilization.
• Development of sustainable aviation fuels.
• Advancements in direct air capture technologies.
• Innovations in long-duration energy storage solutions.

A primary objective is to facilitate the scaling of technologies that currently face economic barriers when competing with established fossil fuel-based systems.

Further details regarding the program’s structure are anticipated to be unveiled at the COP-26 conference in November, following ongoing development over the coming months.

Building on Previous Collaboration

This isn't the first instance of cooperation between the Commission and Breakthrough Energy. However, the current partnership significantly surpasses the scale of the €100 million fund established in 2019 through the EU’s venture investment arm.

The Commission is now collaborating with Breakthrough Energy Catalyst, a program designed to expedite the development and implementation of technologies crucial for a low-carbon economy. This collaboration aims to mobilize up to ten times the funding of the earlier initiative, supporting the construction of large-scale, commercial demonstration projects for innovative clean technologies.

Ultimately, the overarching goal is to reduce costs and accelerate the adoption of clean technologies, thereby achieving substantial reductions in CO₂ emissions in alignment with the Paris Agreement.

EU's Commitment to Net-Zero Emissions

The European Union, a significant CO₂ emitter, has pledged to achieve net-zero emissions by 2050, as outlined in the European Green Deal.

Bill Gates’ Breakthrough Energy, founded in 2015, operates on the premise that renewable energy sources alone will be insufficient to prevent catastrophic climate change. Therefore, investments in a diverse range of high-risk, high-reward technologies are also essential.

Considering the extended timelines required for returns on these investments, public-private partnerships are proving to be a vital component of the financing strategy.

Statements from Key Leaders

Ursula von der Leyen, President of the EU, stated: “With our European Green Deal, Europe wants to become the first climate-neutral continent by 2050. … Europe has also the great opportunity to become the continent of climate innovation. For this, the European Commission will mobilise massive investments in new and transforming industries over the next decade. This is why I’m glad to join forces with Breakthrough Energy. Our partnership will support EU businesses and innovators to reap the benefits of emission-reducing technologies and create the jobs of tomorrow.”

Bill Gates, founder of Breakthrough Energy, added: “Decarbonising the global economy is the greatest opportunity for innovation the world has ever seen. Europe will play a critical role, having demonstrated an early and consistent commitment to climate and longstanding leadership in science, engineering, and technology. Through this partnership, Europe will lay solid ground for a net-zero future in which clean technologies are reliable, available, and affordable for all.”

Funding Sources and Opportunities

Funding from the EU is anticipated to originate from Horizon Europe, the bloc’s primary R&D fund, and the Innovation Fund, which focuses on low-carbon initiatives within the InvestEU program.

Breakthrough Energy Catalyst will contribute equivalent private capital and philanthropic funds to support the selected projects.

The partnership will also welcome investments from EU Member States, either through InvestEU or directly at the project level. A call for expressions of interest for potential InvestEU implementing partners is currently open, with a deadline of June 30, 2021.

The €750 billion “Next Generation EU” recovery fund, established last year, also prioritized renewable energy and cleaner transport. This fund, financed through bond issuance, will channel funds through EU programs between 2021 and 2024.

European lawmakers have also emphasized the crucial role of digitization and AI technologies in supporting Europe’s transition to a greener economy.