{"id":160251,"date":"2026-04-21T14:02:22","date_gmt":"2026-04-21T12:02:22","guid":{"rendered":"https:\/\/euro-funding.com\/?page_id=160251"},"modified":"2026-04-21T17:09:16","modified_gmt":"2026-04-21T15:09:16","slug":"innovation-fund","status":"publish","type":"page","link":"https:\/\/euro-funding.rwdesarrollos2.es\/en\/innovation-fund\/","title":{"rendered":"Innovation Fund"},"content":{"rendered":"\t\t
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Innovation Fund<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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EU Innovation Fund<\/h2>\t\t\t\t<\/div>\n\t\t
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The EU Innovation Fund is one of the world\u2019s largest programmes to demonstrate and deploy innovative low-carbon and net-zero technologies. It is financed through the EU Emissions Trading System (EU ETS): part of the allowances that would normally be auctioned for the general EU budget are ring-fenced and reinvested in breakthrough projects that decarbonise Europe\u2019s industry and energy system. Beyond providing grants,\u00a0the Fund creates strong financial incentives for companies to invest in clean technologies, scale up net-zero solutions and reinforce Europe\u2019s industrial leadership in a highly competitive global landscape<\/strong>. It operates mainly through Net-Zero Technologies (NZT) grants and competitive auctions for mature, investment-ready projects<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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What is the EU Innovation Fund <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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With an expected volume of around \u20ac40 billion between 2020 and 2030 (depending on the carbon price), the Innovation Fund is one of the largest climate innovation instruments globally. It is financed by auctioning a share of EU ETS emission allowances and channelling these revenues into climate innovation instead of the general EU budget, following a \u201cpolluter pays, innovator benefits\u201d logic that directly links carbon pricing to clean investment. The Fund is managed by the European Climate, Infrastructure and Environment Executive Agency (CINEA) on behalf of the European Commission (DG CLIMA).<\/p>

The Fund focuses on highly innovative low-carbon technologies with high impact, especially in energy-intensive industries such as steel, cement, chemicals, refineries, glass and paper, as well as renewable energy, energy storage, CCUS and net-zero mobility and buildings. It supports first-of-a-kind or highly innovative projects that go beyond incremental improvements, demonstrate at commercial or near-commercial scale, deliver substantial GHG emission reductions and can be replicated across Europe.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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Who can apply for the Innovation Fund\u200b <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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The Innovation Fund is open to a wide range of public and private organisations established in eligible countries, as detailed in each call fiche. For the 2025 NZT and auction calls, applicants (beneficiaries and affiliated entities) must be legal entities established in any country worldwide, while project locations must be in EU Member States or EEA countries (Norway, Iceland or Liechtenstein). Typical applicants include industrial companies of all sizes, energy-intensive industries, hydrogen and renewable-energy developers, utilities and infrastructure operators, technology developers and equipment manufacturers, SMEs and start-ups, as well as research centres and universities, often working together in consortia that combine industrial users, technology providers, infrastructure operators, off-takers and financial partners.<\/p>

To be eligible, projects must be implemented in eligible countries, demonstrate substantial GHG emission avoidance against a credible reference technology, reach financial close and entry into operation within the deadlines set in the call and meet the minimum CAPEX thresholds for each topic. They must also comply with EU rules on state aid, Do No Significant Harm (DNSH) and other horizontal requirements such as the EU Taxonomy and environmental and social safeguards. For promoters unsure about their eligibility, it is advisable to start with a high-level eligibility and innovation check before committing resources to a full proposal.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t

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Eligible costs and funding conditions\u200b <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Innovation Fund support is based on \u201crelevant costs\u201d and is provided mainly as lump-sum grants under the NZT calls or as unit contributions and fixed premiums in auctions. For NZT grants (LSP, MSP, SSP, Clean-Tech Manufacturing and Pilots), the Grant Agreement sets a lump sum linked to the project\u2019s relevant costs and the applicable funding rate. The Fund can cover up to 60% of relevant costs, although applicants may request a lower rate. Relevant costs are calculated as the net extra costs of the innovative project compared with a conventional reference, using the official calculator and guidance, and must meet minimum CAPEX thresholds (above \u20ac100 million for LSP, \u20ac20\u2013100 million for MSP, \u20ac2.5\u201320 million for SSP and at least \u20ac2.5 million for Clean-Tech Manufacturing and Pilots).<\/p>

Instead of a classical pre-financing model, NZT grants are typically paid through one or more interim payments before financial close, up to around 40% of the maximum grant, and a significant portion during the operational phase, based on verified performance and GHG emission avoidance. If relevant costs decrease, the grant may be reduced to ensure it does not exceed 60% of recalculated relevant costs. In auctions (AUC-HEAT and AUC-H2), support takes the form of unit grants, i.e. fixed premiums per MWh of decarbonised heat or per kilogram of hydrogen produced, paid on a pay-as-bid basis for up to 10 years. While the ETS Directive allows auctions to cover up to 100% of relevant costs, in practice the premium is meant to close the cost gap between decarbonised output and expected market revenues. In all schemes, payments are made only once projects are in operation and subject to strict GHG accounting, monitoring and verification.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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What type of projects does the Innovation Fund support\n<\/h2>\t\t\t\t<\/div>\n\t\t
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The Innovation Fund backs a broad range of technologies and sectors, from heavy industry and clean energy manufacturing to net-zero fuels. Under the 2025 Net-Zero Technologies call (INNOVFUND-2025-NZT), general decarbonisation topics are divided by project size according to CAPEX:<\/p>