Brussels, 04/02/2010 (Agence Europe) - On Tuesday 2 February, EU member states backed rules proposed by the European Commission to govern the allocation of 300 million emission allowances that have been earmarked to fund demonstration projects for carbon capture and storage (CCS) and innovative renewable energy technologies. The allowances will come from the new entrants' reserve (NER) created under the revised emissions trading directive. The decision reached by the climate change committee, comprising member state experts, supports the four key elements of the Commission's proposal, namely: - a European approach to project selection with involvement of the European Investment Bank (EIB) to ensure a comprehensive technology portfolio; - a European approach to monetisation of the allowances which will be sold by the EIB and distributed to member states for project support; - a strong role for member states in determining which projects are eligible and are suitable for support; - and a good balance between CCS and renewables demonstration, determined by demonstration needs. Member states also back other major elements of the rules proposed by the Commission, namely: - at least one demonstration project awarded per member state but no more than three; - NER funding, in principle, of 50% of the additional costs of demonstration; - a reinforced role for member states in the selection process with a consultation step on the draft list of projects, before the Commission takes the final award decisions. The NER 300 draft text must now be examined by the European Parliament and the Council before returning to the Commission for adoption in May, if no objections have been raised. Assuming this to be the case, the call for proposals for the first round of projects would be issued shortly afterwards. Member states would then submit projects to the EIB by end 2010, to be assessed by the EIB in 2011 with a view to allowing the final Commission award decisions by end 2011. This timetable should ensure that CCS demonstration projects can be up and running by the end of 2015, as requested by the European Council. (E.H./transl.jl)