Innovation Fund – the EU programme contributing to greenhouse gas (GHG) reduction
Succeeding the NER300 programme, the Innovation Fund improves the risk-sharing for projects by giving more funding in a more flexible way through a simpler selection process and is also open to projects from energy-intensive industries.
With a total budget of €38 billion for the 2021-2027 investing framework, the Innovation Fund is one of the world’s largest funding programmes for the demonstration of innovative low-carbon technologies. The goal of the programme is to help businesses invest in clean energy and industry to boost economic growth, create local future-proof jobs and reinforce European technological leadership on a global scale.
Nevertheless, the final aim is to bring to the market industrial solutions to decarbonise Europe and support its transition to climate neutrality by 2050.
Scope of the programme
The Innovation Fund will contribute to greenhouse gas reduction by:
― helping create the right financial incentives for new investments in the next generation of technologies needed for the EU’s low-carbon transition;
― boosting growth and competitiveness by empowering companies with a first-mover advantage to become global clean technology leaders;
― supporting innovative low-carbon technologies in all Member States in taking off and reaching the market.
Projects that can be funded
This funding programme focuses on highly innovative technologies and big flagship projects within Europe that can bring on significant emission reductions. Its support is meant for sharing the risk with project promoters to help with the demonstration of first-of-a-kind highly innovative projects.
The fund is open to small-scale projects, with a total capital cost under €7.5 million, focusing on renewable energy, hydrogen, decarbonization and CO2 storage, which can benefit from a funding rate till 60%.
With regards to large-scale projects, whose total capital cost goes over €7.5 million, it is aimed to finance a varied project pipeline and cross-cutting projects on innovative low-carbon solutions and the funding rate can cover up to 60% of total eligible costs.
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