The European Union is preparing to invest the equivalent of EUR 4.5 billion (US$5.6 billion) in clean energy projects in an effort to stay competitive with the U.S. and China.
Projects will include wind, solar and tidal power, as well as carbon capture and storage (CCS).
Funding will take the form of 300 million CO2 allowances, that will be dispersed to awardees, according to a Dow Jones story. The EUR 4.5 billion figure is based on an average price for one allowance of EUR 15 on the EU's Emissions Trading Scheme (ETS).
On Tuesday, the European Commission issued a request for proposals for a first round of funding, consisting of 200 million allowances. This is expected to go towards at least 34 renewable energy projects and eight CCS projects.
The commission said matching funds from individual countries is expected to push the total to around EUR 9 billion.
According to Reuters, power generators like Germany's E.ON (EOAN.HM) and France Alstom (ALO.PA) are likely to be big winners of the funding.
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