The Innovation Fund is one of the world’s largest funding programmes for pioneering low-carbon technologies, helping Europe lead the way toward climate neutrality.
Powered by the EU Emissions Trading System (ETS).
Financed through revenues from the EU ETS, the Fund has a budget of approximately €40 billion for the period 2021–2030.
What it supports
The Fund focuses on first-of-a-kind demonstration projects and breakthrough clean-tech solutions in:
- Energy-intensive industries
- Renewable energy
- Energy storage
- Carbon capture and storage (CCS)
- Hydrogen
- Sustainable mobility
It also backs smaller-scale projects (under €7.5 million CAPEX) to encourage broader innovation across sectors.
Expanding scope
Since its launch, the Innovation Fund has:
- Added new sectors like maritime, aviation, buildings, and renewable hydrogen
- Introduced competitive bidding mechanisms
- Strengthened geographic balance and eligibility criteria
Strategic impact
The fund plays a vital role in delivering the European Green Deal and achieving the EU’s 2050 net-zero goal by:
- Supporting large-scale clean-tech prototypes
- Bridging the gap between innovation and market deployment
- Driving industrial transformation across Europe