In a bold move to start the process of solving the worldwide energy crunch, the EU is calling for an extra EUR 2 billion for the development of clean technologies. European cleantech firms could soon receive a major windfall in extra funding from the European Commission.

The European Parliament recently voted overwhelmingly in favour of a number of proposed changes to the Commission's Strategic Energy Technology (SET) plan that would see "at least" EUR 2bn of the EU's annual budget earmarked for the support of "new low carbon and zero carbon technology R&D, demonstration and commercialisation" projects from 2009 onwards.

The proposed changes to the SET plan are included in a report, authored by Polish Christian Democrat MEP Jerzy Buzek, which also recommends that funding should not be switched from existing research budgets and should represent new money specifically targeted at technologies capable of reducing the bloc's carbon emissions.

In addition, the report calls for an increased focus on research into second generation biofuels and nuclear power, and endorses the Commission's plans for up to 12 proposed carbon capture and storage demonstration projects. It also recommends increased investment in energy efficiency measures, noting that "it is the area with the most potential for cost effective emission reductions in the medium term".

Alongside the calls for greater investment from the EU, the report calls on the private sector to further bolster its cleantech R&D efforts. It appears that now is the time to take action. If you have a small firm or a large diversified company, now may be the time to cash in on this growing wave of clean, renewable energy sources.  

And you? What do you think about EU initiatives to increase clean technology usage? Tell us about your activity.

Sam Juneau-18/8/2008.