Innovation Fund

The Innovation Fund can finance up to 60% of a small project's total capital expenditure, using three types of instruments to fund projects - small-scale, mid-scale, and large-scale - each designed to accommodate the varying needs and scales of different projects.

Projects are evaluated based on their potential to avoid greenhouse gas emissions, innovation, financial, technical and operational maturity, and their potential for scaling up as well as their cost-efficiency.

The Fund is instrumental in delivering on the EU's commitments under the Paris Agreement and various other climate and energy initiatives, including the REPowerEU Plan, the Hydrogen Bank, the Green Deal Industrial Plan, and the Net-Zero Industry Act.

The Fund's objectives include assisting businesses in investing in clean energy and industry, bolstering economic growth, creating future-proof jobs, and reinforcing European technological leadership globally. To this end, it funds innovative projects focusing on low-carbon technologies, carbon capture and utilisation (CCU), carbon capture and storage (CCS) facilities, innovative renewable energy generation, energy storage, and new sectors like net-zero mobility and buildings.

Compared to the previous NER300 programme, the Innovation Fund provides more funding flexibly, with a simplified selection process and inclusivity for projects from energy-intensive industries.