EU’s Innovation Fund

The Innovation Fund will provide around EUR 25 billion of support over 2020-2030 for the commercial demonstration of innovative low-carbon technologies, aiming to bring to the market industrial solutions to decarbonise Europe and support its transition to climate neutrality.

This will be done through calls for large and small-scale projects focusing on:

• innovative low-carbon technologies and processes in energy-intensive industries
• carbon capture and utilisation (CCU)
• construction and operation of carbon capture and storage (CCS)
• innovative renewable energy generation
• energy storage

How is the Innovation Fund funded?

The EU Emissions Trading System (EU ETS), the world’s largest carbon pricing system, is providing the revenues for the Innovation Fund from the auctioning of 450 million allowances from 2020 to 2030.

What will be funded?

The Innovation Fund focuses on highly innovative technologies and big flagship projects within Europe that can bring on significant emission reductions.