The European Commission has opened the Innovation Fund’s 2023 call for proposals, providing a record budget of €4 billion to support the deployment of innovative decarbonisation technologies.
The call is part of the EU’s efforts to achieve net-zero emissions and is funded by revenues from the EU Emissions Trading System (EU ETS), emphasising the role of carbon pricing in the green transition.
The budget for cleantech manufacturing projects has doubled compared to the previous call, with €1.4 billion allocated to enhance industrial manufacturing capacity, technology leadership and supply chain resilience in Europe.
Project promoters can apply for grants under five categories, each with specific budget and capital expenditure (CAPEX) requirements:
- General decarbonisation (large-scale) – €1.7 billion for projects with CAPEX above €100 million.
- General decarbonisation (medium-scale) – €500 million for projects with CAPEX between €20 million and €100 million.
- General decarbonisation (small-scale) – €200 million for projects with CAPEX between €2.5 million and €20 million.
- Cleantech manufacturing – €1.4 billion for projects focusing on renewable energy, energy storage, heat pumps, and hydrogen production manufacturing.
- Pilot – €200 million for projects focusing on deep decarbonisation.
Projects will be evaluated based on their potential to reduce greenhouse gas emissions, innovation, maturity, replicability and cost efficiency. The Innovation Fund can cover up to 60% of a project’s relevant costs, with eligibility extended to projects in the EEA, including the maritime, road transport and buildings sectors.
Project promoters have until 9 April 2024 to apply via the EU Funding and Tenders Portal. An information day is scheduled online for 7 December 2023, where applicants can learn about the application process and interact with the European Climate, Infrastructure and Environment Executive Agency (CINEA).
Evaluation results will be announced in the fourth quarter of 2024, with successful applicants signing grant agreements in the first quarter of 2025.
The Innovation Fund, expected to generate €40 billion from the EU ETS between 2020 and 2030, aims to incentivise investments in low-carbon technologies, supporting Europe’s climate neutrality transition. It has previously awarded about €6.5 billion to over 100 innovative projects.
Additionally, the Innovation Fund is opening the first pilot auction under the European Hydrogen Bank, with a budget of €800 million available for project developers in the EEA.
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