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4.156. The Horizon 2020 (H2020) programme runs from 2014 to 2020 and is the main EU tool for promoting energy research. Funds amounting to EUR 5,9 million have been earmarked to support the development of clean, secure, efficient and sustainable energy. It includes EUR 1,6 million for the Euratom programme in 2014-18. Horizon Europe, an ambitious EUR 100 billion research and innovation programme, will replace H2020 as from 2021 and will also have a major climate and energy component.

4.157. The European Strategic Energy Technology Plan (SET-Plan), adopted by the Commission on 22 November 2007, is aimed at accelerating the market introduction and take-up of low-carbon and efficient energy technologies. The projected budget for the SET-Plan was estimated at up to EUR 71.5 billion.

4.158. (...) The Commission aims to invest almost EUR 2 billion in 2020 in clean energy research and innovation to meet its commitment to double its public research and innovation investment in this area since 2015 as part of its membership of Mission Innovation. However, the private sector remains the main provider of such investment, accounting for more than 75% of EU investments in clean energy research and innovation, having increased annual spending from about EUR 10 billion to over EUR 16 billion within a decade.

4.159. In November 2018, the Commission published its strategic long-term vision for a prosperous, modern, competitive and climate-neutral economy by 2050 as its contribution to the EU's long-term low GHG emission development strategy. The strategy should be adopted and communicated by 2020 to the United Nations Framework Convention on Climate Change, in accordance with the Paris Agreement. In parallel, each member State must also prepare its national long-term strategy.

4.160. The Commission presented this vision not only to keep the global increase in temperature well below 2°C compared to pre-industrial levels, but also to pursue efforts to limit this increase to 1.5°C by achieving net-zero GHG emissions by 2050. To achieve this, the EU must make progress on seven strategic building blocks (energy efficiency; the deployment of renewables and increased electrification; clean, safe, and connected mobility; competitive industry and circular economy; infrastructure and interconnections; bio-economy and natural carbon sinks; and tackling remaining emissions with carbon capture and storage). These building blocks build on the five dimensions of the Energy Union. They also set the direction of travel for EU climate and energy policy to achieve the temperature objectives in the Paris Agreement.

4.161. Achieving the benefits of the 2030 Climate and Energy Policy Framework will require an estimated EUR 180 billion in additional annual investment between 2020 and 2030 (compared to the 2016 reference scenario). Reaching climate-neutrality will require additional investments in the range of EUR 142-199 billion a year between 2030 and 2050 (compared to a baseline with existing measures requiring already close to EUR 400 billion in investment each year).

4.173. On 14 October 2011, the "Industrial Policy: Reinforcing competitiveness" was adopted. It calls for deep structural reforms and coherent and coordinated policies across member States to enhance economic and industrial competitiveness and foster long-term sustainable growth. It also points out several key areas in which greater effort is needed: structural change in the economy; the innovativeness of industries; sustainability and resource efficiency; the business environment; the single market; and SMEs.

4.174. On 10 October 2012, "A Stronger European Industry for Growth and Economic Recovery — Industrial Policy Communication Update" was launched. It aims at supporting investment in innovation, with a focus on six priority areas (advanced manufacturing technologies for clean production; key enabling technologies; bio-based products; sustainable industrial and construction policy and raw materials; clean vehicles and vessels; and smart grids). (...)

4.177. In September 2017, a renewed EU Industrial Policy Strategy, "Investing in a smart, innovative and sustainable industry", was outlined to bring together all existing and new horizontal and sector specific initiatives into a comprehensive strategy. Some of its main elements include :
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• a new series of actions on circular economy, including a strategy on plastics and measures to improve the production of renewable biological resources and their conversion into bio based products and bio-energy;
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• extension of the skills agenda to new key industry sectors, such as construction, steel, paper, green technologies and renewable energies, manufacturing and maritime shipping;
• a strategy on sustainable finance to better orient private capital flows to more sustainable investments (Section 4.4.1.2.3.4);
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• a revised list of critical raw materials where the Commission will continue to help ensure the secure, sustainable and affordable supply for the EU manufacturing industry; and
• new proposals for clean, competitive and connected mobility, including tightened CO2 emissions standards for cars and vans, an Alternative Fuels Infrastructure Action Plan to support the deployment of charging infrastructure, and foster autonomous driving (see below).

4.184. (...) The strict regulation in the EU ensures that the automotive industry continues to develop sustainable, high quality, technologically-advanced products, while being in a strong position of regulatory leadership from the point of view of both protecting the internal market and maximizing opportunities to access external markets.