6.11.2010 Official Journal of the European Union L 290/39 DECISIONS COMMISSION DECISION of 3 November 2010 laying down criteria and measures for the financing of commercial demonstration projects that aim at the environmentally safe capture and geological storage of CO, as well as demonstration projects of innovative renewable energy technologies under the scheme for greenhouse gas emission allowance trading within the Community established by Directive 2003/87/EC of the European Parliament and of the Council (notified under document C(2010) 7499) (2010/670/EU) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC ('), and in particular the third subparagraph of Article 10a(8) thereof, Whereas: 1 The European Council of June 2008 called on the Commission to bring forward as soon as possible a mechanism to incentivise Member State and private sector investments to ensure the construction and operation by 2015 of up to 12 carbon capture and storage (‘CCS’) demonstration plants. Article 10a(8) of Directive 2003/87/EC establishes a mechanism for the financing of commercial demon- stration projects that aim at the environmentally safe capture and geological storage of CO, (hereinafter ‘CCS demonstration projects) and demonstration projects of innovative renewable energy technologies (hereinafter ‘RES demonstration projects). With a view to ensuring a smooth functioning of this mechanism, it is necessary to lay down both the rules and criteria for the selection and implementation of those projects and the basic prin- ciples for the monetisation of allowances and for the management of revenues. The Commission adopted the Communication entitled ‘Investing in the Development of Low Carbon Tech- nologies’ (3) on 7 October 2009, which emphasises the role of funding under this Decision in implementing the European Strategic Energy Technology Plan (SET-Plan) in respect of the needed demonstration projects. () O] L 275, 25.10.2003, p. 32. (2) COM(2009) 519 final. ) Funding under this Decision should be conditional on clearance by the Commission of any State aid component of the overall financial contribution from public sources pursuant to Articles 107 and 108 of the Treaty with a view to ensuring that funding is limited to the extent necessary for implementation and operation of the project, taking into account potential negative effects on competition. Member States should therefore notify the Commission of any financing involving State aid pursuant to Article 108(3) of the Treaty to allow coor- dination of the selection procedure under this Decision with the State aid assessment. The financing provided under this Decision is not part of the general budget of the European Union. It can therefore be combined with financing from other instruments, including the Structural and Cohesion Funds and the European Energy Programme for Recovery (EEPR). It can also be combined with loan financing provided under the Risk-Sharing Finance Facility (RSFF) set up by the Union and the European Investment Bank (EIB). In order to avoid a subsidy competition between Member States, financing under this Decision should be fixed at 50 % of the relevant costs, unless the total amount of funding under this Decision would exceed the limit of 15 % of the total available allowances as referred to in Directive 2003/87/EC, in which case funding should be limited to 15 % of the total available allowances. The funding should also be complementary to substantial co-financing by the operator. In order not to give prefer- ential treatment to projects funded under the EEPR, financing under this Decision should be reduced by the amount of financing received from the EEPR. The establishment of an EU demonstration programme comprising the best possible projects of a wide range of technologies in geographically balanced locations within the territory of Member States, their exclusive economic zones and their continental shelves, cannot be sufficiently achieved if projects are selected on a national level. The