The European Banking Federation, together with 17 other organisations, has signed a joint letter setting out recommendations for the future of the Industrial Decarbonisation Bank. The letter argues that public funding alone will not meet the investment needs of the energy transition and calls for instruments that can mobilise private finance and improve the business case and bankability of industrial decarbonisation projects. The recommendations center on directing support to energy-intensive industries and to commercial risks, with a focus on projects that are mature and close to a final investment decision. The groups also call for technology-neutral funding mechanisms that preserve fair competition across decarbonisation pathways, coordination with existing European Union and national funding tools, and a mix of de-risking instruments including contracts for difference and fixed premiums. In addition, they urge the bank to build on experience from the Innovation Fund and the European Hydrogen Bank, including through mechanisms such as Auction-as-a-Service and Grant-as-a-Service.

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