Fraunhofer Institute for Systems and Innovation Research ISI

For the industrial transformation to succeed, CO2 pricing and subsidies must be complemented by instruments that create a market for climate-friendly basic materials, otherwise known as “lead markets”. However, it remains unclear how these should be designed and implemented, depending on the industry sector and its requirements.

In a new analysis, Ariadne researchers at the Fraunhofer Institute for Systems and Innovation Research, Guidehouse Germany and the Potsdam Institute for Climate Impact Research propose instruments for the emission-intensive basic materials cement, steel and ethylene.

Universities and public research organizations (PROs) are a central source of innovation in Europe. Translating the knowledge generated at universities and PROs into market applications, however, often proves challenging. A key instrument for knowledge and technology transfer from research to industry is academic patents. Fraunhofer ISI has developed a new method to make these academic patents measurable, enabling a better understanding of technology transfer from universities and PROs.

Almost three quarters of industrial CO₂ emissions in the EU are generated during the production of process heat – a huge and largely untapped potential for decarbonisation. The EU Commission is promoting the electrification of industry in a new pilot auction with a budget of one billion euros. The auction rules have now been published. Fraunhofer ISI is closely involved in the design of the auction. With scientific evidence and extensive experience, we are supporting the development of an instrument that will enable funding to be used in the most straightforward, effective, cost-efficient and technology-neutral way possible.