The European Commission announced that the funding will be provided through the Innovation Fund, which is financed by revenues from the EU Emissions Trading System (EU ETS).
Under the “IF24” call, launched in December 2024 to strengthen Europe’s technological leadership, the Commission has selected 61 innovative projects from 18 countries to receive support. These projects cover a wide range of areas, including energy-intensive industries, renewable energy and energy storage, net-zero mobility, clean technology manufacturing, and carbon management.
The selected projects are expected to deliver a total reduction of around 221 million tonnes of CO₂ equivalent emissions during their first ten years of operation an amount comparable to the annual emissions of approximately 9.9 million European cars. The Commission emphasized that these investments will directly contribute to the EU’s goal of achieving climate neutrality by 2050.
Project developers receiving Innovation Fund support have been invited to start the grant agreement preparation process with the European Climate, Infrastructure and Environment Executive Agency (CINEA). Final financing agreements, including budget, schedule, technical deliverables, and legal responsibilities, are expected to be completed in the first half of 2026.
With revenues of around EUR 40 billion from the EU ETS, the Innovation Fund is one of the EU’s largest funding mechanisms supporting Europe’s transition toward climate neutrality. The latest call received 359 applications requesting a total of EUR 21.7 billion in funding more than nine times the available budget.
Projects were assessed by independent experts based on criteria such as greenhouse gas reduction potential, degree of innovation, maturity, replicability, and cost efficiency.
Additionally, under the Innovation Fund, the Commission launched in 2024 the second renewable hydrogen auction through the European Hydrogen Bank, as well as the first dedicated call for electric vehicle battery cell production projects. Grant agreements for these projects are expected to be signed by the end of the year.
The European Commission aims to open the next Innovation Fund call in December 2025.
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