INNOVATION FUND: 1 billion euros for innovative clean technology projects
On the 3rd of July, the first call for the INNOVATION FUND was published, an unprecedented boost to the EU's green recovery. The deadline for applications is 29 October 2020.
The Commission has launched today the first call for proposals from the INNOVATION FUND, one of the world’s largest demonstration programmes for innovative low-carbon technologies, funded by revenues from the auctioning of allowances under the EU Emissions Trading Scheme. The Innovation Fund will finance cutting-edge technologies for renewable energy; energy-intensive industries; energy storage; and carbon capture, use and storage. It will boost green recovery by creating future-proof local jobs, paving the way to climate neutrality and strengthening Europe’s technology leadership in the world.
One billion in promising, market-ready projects, such as clean hydrogen or other low-carbon solutions for energy-intensive industries such as steel, cement and chemicals. Energy storage, grid solutions and carbon capture and storage will also be supported. These major investments will help relaunch the EU economy and set in motion a green recovery leading to climate neutrality by 2050.
For the period 2020-2030, the Innovation Fund will allocate around 10 billion under the EU Emissions Trading System, in addition to the unspent revenues from the Innovation Fund’s predecessor, the NER 300 programme.
First call published
The first call will provide funding of EUR 1 billion to large-scale projects for clean technologies to help them overcome the risks associated with commercialisation and large-scale demonstration. This support will help new technologies to reach the market. Eight million euro has been set aside to assist promising projects that are not yet ready for the market.
The call is open for projects in eligible sectors in all EU Member States, Iceland and Norway. The funds can be used in cooperation with other public funding initiatives, such as state aid or other EU funding programmes. Projects will be assessed on the basis of their potential to avoid greenhouse gas emissions, the potential for innovation, financial and technical maturity, and potential for expansion and cost-effectiveness. The deadline for submission of applications is 29 October 2020. Projects can be submitted through the EU funding and tendering portal, where the procedure is detailed.
Context INNOVATION FUND
The INNOVATION FUND aims to create appropriate financial incentives for business and public authorities to invest now in the next generation of low carbon technologies and to give EU companies an edge that will make them world leaders in technology.
The Innovation Fund will be implemented by the Network and Innovation Executive Agency (INEA), while the European Investment Bank will provide support for the development of promising projects that are not ready for full implementation.