The timeline for this fund runs until 2030

What is Innovation Fund?

The Innovation Fund (IF) is one of the world’s largest funding programmes for demonstration of innovative low-carbon technologies. Thus, the IF will contribute to greenhouse gas reduction. It is designed to take into account the lessons learned from its predecessor, the NER300 programme.

Objectives

The goal is to help businesses invest in clean energy and industry to boost economic growth, create local future-proof jobs and reinforce European technological leadership on a global scale.

Eligible projects

The Fund focuses on highly innovative technologies and big flagship projects with European value added that can bring significant emission reductions focusing on the following areas:

  • Innovative low-carbon technologies and processes in energy-intensive industries, including products substituting carbon-intensive ones
  • Carbon capture and utilisation (CCU)
  • Construction and operation of carbon capture and storage (CCS)
  • Innovative renewable energy generation
  • Energy storage

Both large- and small-scale projects are supported:

  • Large scale projects with a capital expenditure above €7.5 million.
  • Small scale projects with total capital costs below €7.5 million.

Award criteria

Projects will be selected based on:

  • effectiveness of greenhouse gas emissions avoidance
  • degree of innovation
  • project maturity
  • scalability
  • cost efficiency

Eligible countries

Innovation Fund support is available to projects located in all EU Member States, Norway and Iceland. In several of these countries, national contact points can provide further information on the Fund

Grant financing

The Innovation Fund will support up to 60% of the additional capital and operational costs of large-scale projects and up to 60% of the capital costs of small-scale projects. The 40% remaining can be financed through private finance or state aid.
The grants will be disbursed in a flexible way based on project financing needs, taking into account the milestones achieved during the project lifetime.
Up to 40% of the grants can be given based on pre-defined milestones before the whole project is fully up and running.

Management of the Fund

The Executive Agency for Innovation and Networks is the implementing body of the Fund. It will manage the calls for proposals and all related procedures.
The European Investment Bank is responsible for the provision and management of the Project Development Assistance (PDA) support.

Calls for proposals

On 23 November 2023, the Commission will open two calls for proposals that will make up to €4.8 billion. The application window will be open until early April 2024.
The Commission and the European Climate, Infrastructure and Environment Executive Agency (CINEA) are organising an info day to run potential applicants through the call text and application process on December 7th. Click here to register.


Calls for proposals: https://cinea.ec.europa.eu/calls-proposals_en


Programme website: https://cinea.ec.europa.eu/innovation-fund_en


For checking the legal background of the Innovation Fund, click here.