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Climate Change

5. Technological response

The EU has financed Research and development to fight climate change (R&D) since the 1980s, which has helped the union to draw realistic policy objectives. The EU’s main instrument for R&D funding in Europe is the multi-annual Framework Programme. It brings together scientists from all member states and is open to countries outside the EU.

EU funding for climate-relevant research has been substantially increased to €9 billion in the Seventh Framework Programme (FP7) covering 2007-2013. FP7 has a total budget of €51.5 billion.

Additional funding will come from other activities and specific programmes. For example, the European Commission’s Joint Research Centre will increasingly support EU climate change policies, while a Competitiveness and Innovation Framework Programme, with funding of €3.6 billion for 2007-2013, is promoting innovation in industry.

EU investment in research means better understanding of climate change and the realistic options to reduce its impacts. Research combined with economic analysis has enabled the EU to identify the most cost-effective measures to mitigate climate change, as bringing down the economic cost of the fight against climate change is a global concern. Research focusing on technological development plays an important role in preparing the low-carbon society of the future by improving existing climate-friendly technologies and devising those of tomorrow.

The Emissions Trading Scheme of the EU encourages the uptake of climate-friendly technologies by rewarding businesses investing in green technologies, thus turning their investments into quick profits – the so-called “market pull” approach. However, in order to meet the CO2 reduction targets, new cutting-edge technologies and the funding of their development are also needed – the so-called “technology push” approach, championed by the US. Furthermore, in the context of emerging economies such as China and India – where emissions are surging – transferring climate-friendly technologies is not only an environmental challenge, but a vast opportunity for European businesses.

To reduce emissions, technological advancement is needed at least in the following areas:

• increased use of renewable energy (wind, solar, biomass) and combined heat and power installations
• improvements in energy efficiency in e.g. buildings, industry, household appliances
• alternative fuels, hydrogen
• cleaner cars
• abatement measures in manufacturing industry
• measures to reduce emissions from landfills
• adaptation technologies such as infrastructure design and early warning and monitoring systems