The Innovation Fund is one of the world’s largest funding programmes for the deployment of net-zero and innovative technologies.
The Innovation Fund is the EU fund for climate policy, with a focus on energy and industry. It aims to bring to the market solutions to decarbonise European industry and support its transition to climate neutrality while fostering its competitiveness.
The Innovation Fund is a key funding instrument for delivering the EU’s economy-wide commitments under the Paris Agreement and the climate and energy priorities put forward in the REPowerEU Plan, the Hydrogen Bank, the Green Deal Industrial Plan and the Net-Zero Industry Act.
The Innovation Fund’s goals are to:
- help businesses invest in clean energy and industry
- boost economic growth
- create future-proof jobs
- reinforce European technological leadership on a global scale.
This is done by funding innovative projects focusing 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
The overall management of the Innovation Fund is handled by the European Commission, which has delegated specific tasks to the implementing bodies CINEA and EIB.
The Commission has designated the European Climate, Infrastructure and Environment Agency as the implementing body for the Innovation Fund.
The European Investment Bank (EIB) is responsible for providing and managing project development assistance (PDA), which consists in financial and technical advisory to improve project maturity.
The EU-Catalyst Partnership brings together the European Commission, the European Investment Bank and Breakthrough Energy Catalyst. Launched in 2021, this partnership aims to create a blueprint for public-private investment for clean technologies in Europe.
The countries that are eligible for Innovation Fund financing actively participate in implementing the Fund.