Seventy-seven decarbonisation projects across 18 European countries have signed grant agreements of €4.2 billion ($4.5 billion) under the Innovation Fund 2023 Call (IF23), following the funding results announced in October 2024. These projects, set to commence operations between 2025 and 2031, will receive grants ranging from €1.4 million ($1.5 million) to €262 million ($285 million), financed by revenues from the EU Emissions Trading System. Collectively, they have the potential to cut greenhouse gas emissions by approximately 397.6 million tonnes of CO2 equivalent over their first decade of operation.
In addition to the 77 projects that have finalised agreements, the European Climate, Infrastructure, and Environment Executive Agency (CINEA) has invited six reserve-listed projects to prepare their grant agreements. These additional projects could contribute to a further 24.6 million tonnes of CO2 equivalent in emissions reductions.
The 83 projects selected under IF23 encompass large, medium, and small-scale initiatives, as well as pilot projects, with a strong focus on cleantech manufacturing, aligning with the Net-Zero Industry Act (NZIA). They will drive emissions reductions in sectors traditionally challenging to decarbonise, including energy-intensive industries, renewable energy, energy storage, industrial carbon management, net-zero mobility (including maritime and aviation), and buildings.
Beyond mitigating emissions, these projects aim to strengthen industrial competitiveness, bolster supply chain resilience, position the EU as a leader in clean technology, and promote breakthrough climate solutions.
The IF23 call attracted 337 applications from 27 countries. After eligibility and admissibility checks, 283 projects underwent evaluation by independent experts against five key criteria: innovation level, potential for greenhouse gas reduction, project maturity, scalability, and cost efficiency. Of the 85 projects pre-selected in October 2024, eight later withdrew, making room for six reserve-listed projects to secure funding. These projects are now preparing for grant agreements, expected by mid-2025.
Additionally, all 149 projects that met evaluation thresholds have been awarded the STEP Seal, an EU quality label under the Strategic Technologies for Europe Platform (STEP). This distinction highlights high-quality projects in clean, resource-efficient, and digital technologies, facilitating investment by public and private entities in strategic innovations.
Funded by revenues from the EU Emissions Trading System, the Innovation Fund is expected to generate approximately €40 billion ($44 billion) by 2030 (based on a carbon price of €75 per tonne of CO2). With a total budget of around €12 billion ($13 billion), the fund has already supported over 200 innovative projects across the European Economic Area (EEA).
Looking ahead, the Innovation Fund 2024 (IF24) calls remain open, seeking proposals on net-zero technology and electric vehicle battery manufacturing, with a submission deadline of 24 April 2024.
