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Innovation Fund
From Department of the Environment, Climate and Communications
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The EU Innovation Fund (IF) is financed from revenue from the auctioning of 450 million allowances under the EU Emissions Trading System (EU ETS), as well as unspent funds from its predecessor, the NER300 programme.
It is estimated that up to €40 billion will be available to be invested up to 2030 in driving clean, low carbon and innovative technologies towards the market.
The Innovation Fund can cover up to 60% of a project's relevant costs. Projects located in the EEA are eligible to apply, and following the recent revision of the EU ETS Directive the Innovation Fund calls are now also open to the maritime, road transport and buildings sectors, in addition to technologies in energy-intensive industries (including aviation).
Since the launch of the first call in 2020 the IF has already awarded around €6.5 billion to more than 100 projects across Member States.
The IF will fund new and innovative technologies that deliver the avoidance of Green House Gas (GHG) Emissions, are innovative and not already available, are in line with the EU's 2050 policy to decarbonise Europe and support its transition to climate neutrality and are relatively mature.
Image: Innovation Fund
This is achieved through annual calls for projects focusing on:
- 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)
- Renewable Energy Generation
- Energy Storage
The selection of projects will be based on:
- Effectiveness of Greenhouse Gas Emissions Avoidance
- Degree of Innovation
- Project Maturity
- Scalability
- Cost Efficiency
The Environment and Climate Research and Advisory Unit in the Department of the Environment, Climate and Communications (DECC) is the National Contact Point (NCP) for the IF and is represented on the DG CLIMA Expert Group.
The NCP promotes awareness of the Fund and gives guidance to prospective applicants. As a member of the Expert Group, the Unit engages with the Commission on the development of the Fund and associated calls for projects.
The NCP retains a distribution list to provide updates to prospective applicants. To be added to the distribution list, email InnovationFund@decc.gov.ie
On 23 November 2023, the Commission opened the Innovation Fund's 2023 call for proposals with a record budget of €4 billion to support the deployment of innovative decarbonisation technologies.
The Commission has increased the overall funds available, doubling the budget allocated to the previous call.
€1.4 billion is available to strengthen industrial manufacturing capacity, technology leadership, and supply chain resilience in Europe.
Applicants can apply for grants under five topics with distinct budget and capital expenditure (CAPEX) requirements:
- General Decarbonisation (Large-Scale) - €1.7 billion available for projects with CAPEX above €100 million
- General Decarbonisation (Medium-Scale) - €500 million available for projects with CAPEX between €20 million and €100 million
- General Decarbonisation (Small-Scale) - €200 million available for projects with CAPEX between €2.5 million and €20 million
- Cleantech Manufacturing - €1.4 billion available for projects with CAPEX above €2.5 million focusing on the manufacturing of components for renewable energy, energy storage, heat pumps and hydrogen production
- Pilot Projects - €200 million available for projects with CAPEX above €2.5 million focusing on deep decarbonisation
The Innovation Fund offers Project Development Assistance (PDA) through collaboration with the European Investment Bank (EIB). This support is extended to projects that, while meeting specific criteria, may require further development before qualifying for funding from the Innovation Fund. Since the inception of the IF a total of 39 projects have received a PDA assistance.
The Department held the National Information Day on Tuesday 16 January 2024.
The Department was joined by DG Climate Action and CINEA to present on the Innovation Fund in general, and more specifically the latest call for Projects followed by a Q&A session. The presentations can be viewed below. Please go to the link below where you will find a recording of the event.
