The European Commission is in the final stages of designing a new EU Innovation Fund which is expected to invest €10 billion up to 2030, in driving clean, low carbon and innovative technologies towards the market. The Innovation Fund will be a key source to deliver on the EU's commitments to reducing greenhouse gas emissions under the Paris Agreement and to support the EU's longer term vision of a climate neutral Europe by 2050. The first call for projects will take place in 2020 followed by regular calls until 2030.
Sources for the Innovation Fund consist of revenue from the auctioning of 450 million allowances from 2020 to 2030 under the EU Emissions Trading System (EU ETS), as well as unspent funds from the Fund's predecessor, the NER300 programme. The new fund will build on lessons learnt from NER300 and incorporate improved features.
The Innovation Fund will support various projects supporting innovation in the fields of:
- Innovative low-carbon technologies and processes in energy intensive industries, including products substituting carbon intensive ones
- Carbon capture and utilisation (CCU)
- Construction and operation of Carbon capture and storage (CCS)
- Innovative renewable energy generation
- Energy storage
The selection of projects will be based on the degree of innovation, their effectiveness in avoiding greenhouse gases, viability and maturity, scalability and cost efficiency.