Innovation Fund Grant by the European Commission
EU Innovation Fund 2025–2026: Application Guide, Deadlines & Success Tips The EU Innovation Fund is one of the world’s largest funding programmes for innovative clean technologies, aimed at bringing net-zero solutions to market at scale. Funded by revenues from the EU Emissions Trading System (ETS), it supports first-of-a-kind projects that significantly reduce greenhouse gas emissions and help Europe reach climate neutrality. This overview explains what the Innovation Fund is, who can apply, how the application process works, and provides guidance – from key 2025 and 2026 deadlines to tips for preparing a strong Innovation Fund proposal. Whether you plan to apply on your own or with an Innovation Fund consultant or proposal writer, these insights will help you navigate the process and improve your chances of Innovation Fund success. What is the EU Innovation Fund? The EU Innovation Fund provides major grants for deploying innovative net-zero technologies at industrial scale, funded by the EU ETS. The Innovation Fund is a climate-focused funding program established by the European Commission (DG CLIMA) to finance the demonstration and scale-up of innovative low-carbon technologies. It succeeds the earlier NER300 program and is expected to allocate around €38 billion by 2030 toward cutting-edge decarbonization projects. Unlike traditional R&D funding (e.g. Horizon Europe), the Innovation Fund is not for basic research – it targets projects at the pilot, demonstration, or first industrial deployment stage, bridging the gap to commercial viability. By covering up to 60% of relevant project costs (with grants ranging from millions to hundreds of millions of euros), it helps companies overcome high upfront costs and risks, enabling them to bring innovative climate solutions to market faster. Purpose: The fund’s purpose is to drive significant greenhouse gas (GHG) reductions in hard-to-abate sectors while strengthening EU industrial competitiveness. It supports projects in areas such as renewable energy, energy storage, energy-intensive industries (like steel, cement, chemicals), carbon capture, utilization and storage (CCUS), hydrogen, sustainable fuels, and other breakthrough clean technologies. By investing in these first-of-a-kind projects, the Innovation Fund aims to pave the way to a climate-neutral Europe by 2050, in line with the European Green Deal and the Net-Zero Industry Act. Successful projects are expected to deliver sizable CO₂ reduction over 10 years of operation and act as trailblazers that can be replicated across Europe. Scale: The Innovation Fund runs annual calls for proposals from 2020 through 2030, funded through the auctioning of EU ETS allowances. Each call makes billions of euros available. For example, the 2024/25 call (for the 2025 cycle) offers about €3.4 billion in grants – €2.4 billion for a broad Net-Zero Technologies call and €1 billion for a dedicated Battery Manufacturing call. In addition, the Fund has introduced competitive hydrogen auctions (under the European Hydrogen Bank) to support renewable hydrogen production. The scale of funding is massive: a recent 2023 call awarded €4.2 billion to 77 projects across 18 countries, with individual grants up to €262 million for flagship projects. This scale makes the Innovation Fund a highly attractive opportunity for companies with bold climate innovation projects. Who Can Apply and What Projects Are Eligible? Eligible Applicants: In principle, any legal entity – private company, public body, consortium, small or large – can apply for Innovation Fund support, as long as it is registered in an eligible country. Eligible countries include all EU Member States plus countries in the European Economic Area that participate in the EU ETS (currently Norway, Iceland, and Liechtenstein). Applicants may apply individually (a single company or organization) or as a consortium of several partners. Unlike some EU programs, a consortium is not mandatory; a single company can submit a proposal on its own. However, all projects must be carried out within the eligible countries (i.e. the project’s site and impact should be in the EU/EEA). Eligible Projects: The Innovation Fund supports a wide range of project types, but with a common theme – innovative technologies with significant climate impact that are ready for scale-up. Key characteristics of eligible projects include: Climate Impact: The project should substantially reduce GHG emissions in one of the eligible sectors. These sectors cover renewable energy (e.g. next-generation solar, wind, renewable hydrogen), energy storage, energy-intensive industries (e.g. low-carbon steel, cement, chemicals processes), carbon capture, utilization and storage, alternative fuels, net-zero mobility, and even climate-friendly building technologies. The expected CO₂ (or equivalent) emission avoidance over 10 years is a critical factor – projects must quantify how much emissions they will avoid compared to conventional technology. Innovative Technology: Projects must feature a high degree of innovation. Typically, this means a first-of-a-kind or new technology at industrial scale that is not yet commercially available in the market. In terms of Technology Readiness Level (TRL), the Innovation Fund is generally looking at around TRL 8 – i.e. technology that has proven itself at pilot scale and is now at first commercial demonstration. Pure research or lab projects (TRL 6-7 or below) are not funded; instead, the project should be at the cusp of commercialization, demonstrating a breakthrough solution in a real operational environment. This focus ensures the fund backs innovative projects that will deploy new technology, rather than research projects or already fully commercial solutions. Maturity and Viability: Only projects that are sufficiently mature in planning, business model, and financial structure are considered. In practice, this means by the time of application you should have a well-developed project: feasibility studies done, a business plan, engineering plans, and ideally key permits in progress. The EU expects an Innovation Fund project to be investment-ready – something you could present to investors or your company’s board for a final investment decision. Early-stage ideas without concrete implementation plans will likely be rejected. Moreover, the project must not have started implementation before application – e.g. construction should not be underway and no irrevocable contracts signed. (Preparatory steps like securing land or preliminary permits are fine.) Project Size: The fund caters to both large projects and small projects, but they may be addressed via different calls or streams. Historically, “large-scale” projects … Läs mer
