Drowning in paperwork - The EU has disbursed only a small share of the funding it has awarded under its Innovation Fund since 2021, with just 4.7% of €7.1 bln paid out due to heavy administrative requirements and slow project progress. According to European Commission data cited by the FT, companies spend an average of €85,000 per application and often subcontract work to consultants because of the paperwork involved. Some applicants report devoting up to 3,000 hours to submissions. Fewer than 20% of applications succeed, and only 6% of awarded projects are operational, with 15-20% experiencing delays. The bureaucratic burden is cited by industry groups and companies as a major obstacle, particularly for smaller firms developing early-stage technologies. Large projects in areas such as CCS and green hydrogen often secure grants but are slow to reach financial close or construction, contributing to the low payout rate. The Commission argues that first-of-a-kind projects naturally require more time and that the rigorous process helps improve project design. Market conditions further complicate deployment. Vianode, which received a €90 mln grant in 2023 for low-carbon synthetic graphite, abandoned its European plant in favour of Canada due to low-priced Chinese imports and better commercial incentives in North America. Critics say the programme is oversubscribed but not delivering capital at the speed required, creating a significant opportunity cost despite the expectation that around €40 bln from the EU ETS could feed into the fund by 2030. Industry observers argue that the current funding model is not well suited to Europe’s competitiveness challenges.

Save the dates - The EU and Switzerland this week confirmed the 2026 operating schedule for transfers of emissions allowances between their linked carbon markets, with weekday transfers set to continue throughout the year except on a small number of pre-announced dates. Authorities said any amendments to the 2026 calendar will be communicated at least five working days in advance, while short-notice updates may still occur if the registry link is temporarily closed for security or other unforeseen reasons. Cancelled transfer days will not be rebooked unless specifically stated. Market participants can initiate cross-registry transactions at any time, with transfers executed on the next working day once the mandatory delay period has elapsed – 26 hours in the EU registry, and 24 hours in the Swiss registry. The EU and Swiss Emissions Trading Systems have been formally linked since Jan. 2020, allowing each side’s allowances to be used for compliance in the other system and enabling physical movement of units between the two registries. Daily weekday transfers have been in place since 2024, with annual calendars published in advance and updates for 2027 due before the end of 2026.