The European Innovation Fund stands as a pivotal instrument in the European Union’s strategy to achieve climate neutrality by 2050
By financing large-scale projects that demonstrate innovative low-carbon technologies, the fund aims to catalyse substantial reductions in greenhouse gas emissions across various sectors.
Fund Size and Financing
The Innovation Fund is projected to provide approximately €38 billion in support from 2020 to 2030, contingent upon carbon pricing. This funding is primarily sourced from the auctioning of EU Emissions Trading System (EU ETS) allowances. The fund is designed to support up to 60% of the relevant costs of projects, with grants disbursed in alignment with project financing needs and milestones achieved.
Investments and Contributions
The fund targets highly innovative technologies and flagship projects capable of delivering significant emission reductions. It supports a diverse array of projects across sectors such as energy-intensive industries, renewable energy, energy storage, carbon capture, utilisation and storage, and net-zero mobility and buildings. The fund is accessible to projects within EU Member States, Iceland, Norway, and Liechtenstein.
Examples of Funded Projects
Several notable projects have received funding from the Innovation Fund, exemplifying the EU’s commitment to fostering innovative solutions for a sustainable future:
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Nordsee 2 Offshore Windfarm (N2OWF):
This German project aims to construct and operate a pioneering offshore wind farm with a capacity of 450 megawatts (MW). It integrates on-site production, storage, and offtake of green hydrogen, contributing to SDG 7 by ensuring access to affordable, reliable, sustainable, and modern energy.
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H2GreenSteel:
Located in Boden, Northern Sweden, this project focuses on the large-scale production of renewable hydrogen, green iron, and green steel. It supports SDG 9 by promoting inclusive and sustainable industrialisation and fostering innovation within the steel industry.
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Ecoplanta:
This Spanish initiative aims to reduce carbon dioxide emissions by converting non-recyclable municipal waste into methanol, aligning with SDG 13 by taking urgent action to combat climate change and its impacts.
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Swap2Zero:
A French project led by COMPAGNIE DU PONANT, aiming to design a transoceanic sailing cruise vessel capable of achieving near-zero greenhouse gas emissions. The vessel will utilise a combination of wind propulsion, hydrogen fuel cells, and innovative carbon capture systems.
Recent Calls for Funding
The Innovation Fund has recently launched several calls to support projects in net-zero technologies and renewable hydrogen:
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IF24 Call and IF24 Battery:
Launched on 3 December 2024, these calls offer a total of €3.4 billion to support net-zero technologies and electric vehicle battery cell manufacturing. The deadline for applications is 24 April 2025, 17:00 CEST.
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Innovation Fund 2024 Auction:
Also launched on 3 December 2024, this auction has a budget of €1.2 billion to support renewable hydrogen projects. The application deadline was 20 February 2025, 17:00 CET.
These initiatives aim to strengthen Europe’s manufacturing capacity, technological leadership, and supply chain resilience in the context of the EU’s climate objectives.
For detailed information on eligibility, application procedures, and supporting documents, prospective applicants are encouraged to consult the official European Commission and CINEA websites.
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