Innovation Fund
40 Billion Budget
The Innovation Fund is one of the largest funding programmes supporting innovative low-carbon technologies. Focused on achieving significant reductions in greenhouse gas emissions, this program supports First of a Kind (FOAK) projects that are scalable and capable of transforming the EU’s energy landscape.
A vision for a
carbon-neutral EuropeTo achieve the EU’s climate goals, there’s a push for innovative, low-carbon technologies. This includes a target of reducing greenhouse gas emissions by at least 55% by 2030 and aiming for climate neutrality by 2050.
Encouraging EU companies to pioneer these solutions is crucial. However, such projects face financial challenges due to their high risk. Despite this, their potential benefits extend far beyond individual companies or Member States, warranting EU-level public support.
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Why is the Innovation Fund
interesting for you?
The Innovation Fund is one of the world’s largest funding programmes aiming at the commercial deployment of low-carbon and innovative technologies.
In the most recent call (2023), the 41 financed Innovation Fund projects received an average of €88 million each.
Since the fund’s inception in 2020, grant amounts have ranged from €1.6 million to €356 million.
If selected, applicants can benefit from up to 60% of the relevant costs, which can be understood as the additional CAPEX and OPEX for the implemented solutions required to achieve the targeted GHG emissions reduction.
Grants are distributed flexibly upon fulfillment of predefined milestones, such as GHG emissions reduction, completion of work packages, or hydrogen production.
This ensures that funding is aligned with the achievement of these milestones over the project’s duration, supporting positive cash flow.
The fund targets technologies/innovations that are not yet at commercial stage, accelerating their deployment, leading to new market opportunities and expansion, reducing technical risk, and shortening the time to market.
Additionally, it mitigates financial risks associated with high-cost projects that might otherwise struggle to secure financing.
Some of the sectors and segments that are susceptible for funding are: chemicals, renewable energy production (solar, wind, hydro/ocean, geothermal, etc.), carbon capture and utilisation/storage, cement and lime, glass, ceramics and construction material, hydrogen, iron, steel and non-ferrous metals, manufacturing of cleantech components, energy storage, refineries, alternative fuels (bio/e), pulp and paper, heating and cooling, batteries and heat pumps, construction sector, maritime, aviation and road transport, etc.
Developing low-carbon technologies positions companies favourably for regulatory compliance, cost savings, market leadership, and enhanced visibility and reputation towards the EU institutions and beyond, all while contributing to the global effort to combat climate change.
Applying to the Innovation Fund is beneficial for companies because it offers an opportunity to recoup the costs associated with ETS allowance expenditures by securing funding for innovative, low-carbon projects.
Regardless of the evaluation outcome, the effort invested in preparing and submitting an Innovation Fund application provides substantial value to the project.
By coordinating internal teams, structuring the value proposition, identifying risks, and engaging in strategic planning, the process demonstrates commitment and readiness, boosting investor confidence and significantly contributing to achieving a potential final investment decision (FID).
Who
is it aimed at?
- Carbon capture and use/storage CCU/CCS
- Renewable energy production
- Energy storage
- Sectors listed in Annex I and III to the EU ETS Directive: steel, paper, cement, chemical, ceramic, iron, refinieries, etc.
- Hydrogen
- Cleantech Manufacturing facilities
- Energy Intensive Industries (EII)
- Mobility: maritime, aviation and road transport
- Construction

Do you have an idea in mind?
Our team helps make your projects a reality and advises you along the way.
Our figures in the
Innovation Fund
48
EU proposals submitted to Innovation Fund
18
EU proposals funded
by Innovation Fund
€1.1B
Return to our clients
in Innovation Fund
38%
Funding rate
in Innovation Fund
How can we
help you
1. Overall Strategy
We provide strategic guidance to align your project with Innovation Fund calls, ensuring industry relevance, best practices, and maximizing grant potential while meeting EU goals.
We are based in Brussels and are experts in Innovation Fund Programme as in its predecessor, NER 300, securing over €1.1 billion for clients.
3. Technical & Financialexpertise
Our EU unit of over 150 engineers brings deep technical expertise, complemented by a strong financial department, enabling streamlined processes and optimized project outcomes.
4. Coordination of theentire process
We coordinate the entire proposal process, integrating with your teams for efficiency and managing consortiums, while handling all aspects, including European Commission communication.
5. Expert writing
We actively contribute to writing your proposal, leveraging team inputs and our experience with over 250 EU submissions annually to ensure evaluators clearly understand your project’s strengths.
6. Tailored service
We provide customized support tailored to your project’s needs, adapting quickly to unforeseen events to enhance the quality and relevance of your proposals.
3 reasons to choose Innovation Fund
Technology & business validation
We support projects advancing pioneering technologies from TRL8 to industrial implementation.
High impact and Value
Funding for investment projects with high innovative value and transformational potential in your sector.
Flexibility
Companies can apply individually or as part of a consortium.

Discover key insights
and expert strategies
in the Innovation Fund!
Explore essential insights from the program
to enhance your project’s funding potential.

Our projects

H2 Auction 2023
CATALINA
GREEN HYDROGEN FOR SPAIN
Developed by COPENHAGEN INFRASTRUCTURE PARTNERS and ENAGÁS RENOVABLE
Total amount granted: 230,000.000.00 €

Large Scale 2021 Call
ECOPLANTA
ECOPLANTA MOLECULAR RECYCLING SOLUTIONS S.L.
Developed by REPSOL and ENERKEM
Total amount granted: 106,379.783.00 €
Related staff

“Thanks to the projects funded by Zabala Innovation in the Innovation Fund, we’ve avoided over 40 million tons of CO2 emissions. That’s like planting 660 million trees, covering the entire island of Corsica, or powering 5.1 million homes with clean energy for a year—equivalent to the entire population of Belgium!”
Igor Idareta
Team leader with expertise in European Programmes
How can we help you?
Our team can advise you on any question you might have, so feel free to contact us, no strings attached.
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