Concerns emerge over the allocation of EU industrial decarbonisation subsidies, while the next €2 trillion EU budget faces initial negotiations.

Welcome to HEU Pulse. Today, we're examining concerns over EU industrial decarbonisation subsidies and the start of negotiations for the next $2 trillion dollar .eu budget. Indeed, early discussions have begun for the Multiannual Financial Framework for 2028 to 2034, setting the stage for complex negotiations over future funding priorities. That proposed $2 trillion budget will shape the bloc's investment across all sectors, with significant implications for fundamental research and innovation. Current projects analyzing R&D policy design and supporting social innovation highlight the ongoing focus. The MFF will determine the scale and direction of these vital programs. Meanwhile, questions are being raised about the effectiveness of current public funding, particularly regarding industrial decarbonisation. Our number of the day is $61 billion. That's the amount of state aid approved under the Clean Industrial Deal, yet only one percent has gone to industrial cleanup efforts. Just one percent directed towards cleaning up industrial processes. That sounds remarkably low for a deal aimed at achieving climate neutrality. It certainly is. The vast majority of those subsidies appear to have bypassed direct investment in cleaner production methods, raising significant questions about their effectiveness. This is especially critical for hard-to-abate sectors, such as cement, steel, and ammonia, which rely on inherent high temperature processes. Exactly. Deep decarbonisation is technically challenging here. Projects evaluating advanced technologies, like carbon capture and alternative fuels, are crucial for net zero targets. So while the EU aims for ambitious climate goals, the allocation of current funds seems to fall short of directly supporting industrial cleanup. This disparity highlights the challenge of translating policy intent into tangible results. Achieving Green Deal targets by 2050 necessitates deep cuts across all economic sectors. And as the two trillion budget fight begins, these lessons about effective spending will undoubtedly inform future debates. For more on these stories and other European developments, visit heu.eu. That's all for HEU Pulse today.