An own-initiative report by German EPP-ED member Christian Ehler has been adopted in a plenary session at the European Parliament, which supports the early demonstration of sustainable power generation from fossil fuels. It states however that there are currently insufficient incentives for large-plant operators to invest in CCS (carbon capture and storage) technology, and that further encouragement in the form of greater financial commitment was needed.
 
The move sees the House calling for a direct financial commitment for 12 demonstration plants by 2015, to test whether the underground storage of CO2 is viable on a large-scale in future.
 
Under the proposed agreement for CCS funding should come from allowances under the EU's ETS (emission trading scheme), which are to be freed up for operators of the technology  to use as an incentive. The report therefore supports the proposal to make 500 million credits available under the trading system for demonstration projects, a number far greater than the Commission and French EU Presidency had recently proposed.
 
In addition MEPs have agreed that €500 million of the Risk Sharing Finance Facility (RSFF) should supplement investment, along with  further possible funding from the European Investment Bank. The selection of storage sites should meanwhile be  based on 'binding and strict criteria', which 'should be set for long-term safety', according to the Parliament.
 
The report was adopted by a majority, with 474 votes in favour, 66 against and 20 abstentions, and recommends that the plants used for demonstration have a minimum output of 180 MegaWatts and that they be as geographically spread out as possible.