Innovation Fund: funding for decarbonisation and low-carbon technologies
Secure funding for low-carbon technologies and industrial decarbonisation. The Innovation Fund covers up to 60% of relevant costs for innovative projects in energy, industry and clean mobility and is one of Europe’s largest funding programmes, with a budget of tens of billions of euros.
Application period:
calls are launched on a rolling basis
What can be funded:
industrial decarbonisation, clean technologies, CCUS, renewable energy and energy storage
Eligible applicants:
small, medium-sized and large enterprises
Maximum project funding:
from EUR 2.5 million to hundreds of millions of euros, depending on the project category
Funding rate:
up to 60% of relevant costs
The EU Innovation Fund supports projects that introduce new technologies helping to reduce greenhouse gas emissions and accelerate the transition towards a cleaner economy. It focuses mainly on innovative solutions in areas such as energy, industry, renewable energy sources, hydrogen, and CO₂ capture that are close to practical deployment. The Fund is primarily intended for larger-scale demonstration and investment projects with significant potential for emissions reductions and further deployment across the EU.
About the Innovation Fund
The Innovation Fund is designed to demonstrate and commercialise innovative low-carbon technologies. It directly supports the EU’s objective of achieving climate neutrality by 2050 and is one of the key instruments of the European Green Deal.
The programme is financed from revenues generated by the EU Emissions Trading System (EU ETS). It is expected to distribute tens of billions of euros by 2030. Unlike traditional research programmes, it focuses on bringing breakthrough technologies to market and bridging the financial gap between research and full commercial operation.
Who can apply
- small and medium-sized enterprises developing breakthrough clean-tech innovations, including start-ups and scale-ups,
- large industrial and energy companies undertaking capital-intensive green transformation projects,
- national and international consortia bringing together technology developers, integrators and industrial end users.
Applications may be submitted by a consortium of several organisations or by a single applicant.
Funding rate
The grant is calculated on the basis of relevant costs: the additional costs associated with the innovative technology compared with a conventional alternative during the first ten years of operation. A standard grant may cover up to 60% of relevant costs.
Project categories
Calls are divided according to the project’s capital expenditure (CAPEX):
- Small-scale projects: EUR 2.5–20 million,
- Medium-scale projects: EUR 20–100 million,
- Large-scale projects: more than EUR 100 million.
What can be funded
Funding can cover activities required for the first industrial deployment of clean technologies, particularly:
- decarbonisation of energy-intensive industries such as steel, chemicals, cement, paper, glass and ceramics,
- carbon capture, utilisation and storage (CCUS),
- innovative solar, wind and geothermal energy solutions,
- energy storage and clean mobility, including advanced batteries, hydrogen electrolysers, heat pumps and innovative components for electric mobility.
Prepare your project early
Success in the Innovation Fund depends not only on the quality of the innovation, but also on robust project preparation, credible emissions-reduction calculations and detailed financial modelling. We can help you develop a coherent funding strategy and a clear plan for securing and using the grant effectively.
