The Innovation Fund, managed by the European Union, is a substantial funding program aimed at fostering the development and deployment of innovative low-carbon technologies. Funded by the EU Emissions Trading System, the fund prioritizes projects across all member states that can significantly reduce greenhouse gas emissions, supporting the EU's commitment to achieving climate neutrality.
Objective(s) and scope
The Innovation Fund is a dedicated EU fund for climate policy, with a particular emphasis on energy and industry. Its primary objective is to introduce market solutions that will support the decarbonisation of the European industry, thereby supporting its transition towards climate neutrality. This is aimed to be achieved while simultaneously enhancing its competitiveness, with funding sourced from the EU Emissions Trading System (ETS).
The Innovation Fund is driven by the following objectives:
- help businesses invest in clean energy and industry
- boost economic growth
- create future-proof jobs
- reinforce European technological leadership on a global scale.
These objectives are realised by financing innovative projects that focus on:
- innovative low-carbon technologies and processes in energy-intensive industries, including products that can substitute carbon-intensive ones
- carbon capture and utilisation – CCU
- construction and operation of carbon capture and storage (CCS) facilities
- innovative renewable energy generation
- energy storage
- net-zero mobility and buildings
In light of the recent revision of the ETS Directive, new sectors have been added, including net-zero mobility (maritime, aviation, road transport) and buildings. With the inclusion of the maritime sector in the ETS, the Innovation Fund is now in a position to support the development and implementation of breakthrough technologies aimed at decarbonising this sector. This includes initiatives in energy efficiency, sustainable alternative fuels, electrification, and zero-emission propulsion technologies, such as wind technologies. The fund also supports the development of innovative infrastructure in the maritime sector, particularly for EU container transhipment ports. Projects funded by the Innovation Fund can address the full spectrum of climate impacts, including black carbon emissions.
The fund awards grants through calls for proposals and through competitive bidding procedures (auctions).
The first EU-wide auction (IF23 Auction) for the production of RFNBO (renewable fuel of non-biological origin) hydrogen was launched on 23 November 2023 and closed on 8 February 2024. The auction attracted 132 projects bids from 17 European countries
Financing value
No fixed minimum amount per project.
On 3 December 2024, the Commission launched 2 calls for proposals and an auction under the Innovation Fund:
- IF24 Call with €2.4 billion available for Net-Zero technologies
- IF24 Battery with €1 billion available for electric vehicle battery cell manufacturing
Low capital (EUR 0-5 million), Mid capital (EUR 5-50 million), High Capital (EUR > 50 million)
Eligibility criteria (if available)
Projects that apply to the IF24 Call will be selected based on different criteria:
- Effectiveness of greenhouse gas emissions avoidance
- Degree of innovation
- Project maturity
- Replicability
- Cost efficiency
Projects that apply to the IF24 Battery call will be evaluated based on seven award criteria:
- Effectiveness of greenhouse gas emissions avoidance
- Degree of innovation
- Project maturity
- Replicability
- Cost efficiency
- Potential to reduce manufacturing carbon footprint
- Security of supply and countering dependency on a single third country.
The detailed scoring and ranking methodology are set in each call for proposals.
Further information on eligibility criteria
Additional eligibility criteria for the maritime sector projects can be added. For maritime sector projects:
- When the projects concern investments on ships, those ships must carry a flag of an EU Member States or an EEA country and call ports under the jurisdiction of an EU Member State or EEA country on regular basis (at least 15%), or must call ports under the jurisdiction of an EU Member State or EEA country on a regular basis (at least 30% over 2 years); or perform service or support activities in ports under the jurisdiction of an EU Member State or EEA country
- When the projects concern investments in ports infrastructure, the ports must be under the jurisdiction of an EU Member States or an EEA country
Application period
There will be regular calls for project proposals throughout the duration of the Innovation Fund (between 2020 and 2030).
For reference, last call was published on 3 December 2024 and will remain open until 25 April 2025.
Additional information
Different topics are covered under each call, some of which may be relevant to the maritime industry. For reference, a total of 337 project proposals were submitted in response to the 2023 call. Out of those, 10% were related to mobility, and 70% of those concerned the maritime industry. This resulted in 24 applications (7%) for support for the maritime industry.
