The commission has recently launched calls for proposals under the Innovation Fund to encourage clean technology projects and to achieve climate neutrality under the Green Deal
The Innovation Fund is one of the world’s largest programmes for the demonstration of innovative low-carbon projects and technologies. It is financed by revenues from the auction of emission allowances from the EU’s Emissions Trading System.
The Innovation Fund will finance breakthrough clean technology projects, specifically for renewable energy, energy-intensive industries, energy storage, and carbon capture, use and storage. Not only will it provide a boost to the green recovery by creating local future-proof jobs, paving the way to climate neutrality, but it will also help reinforce European technological leadership on a global scale.
The European Green Deal aims to convert the 27-country bloc from a high to a low-carbon economy, without reducing prosperity and while improving people’s quality of life, through achieving carbon neutrality.
Executive vice president, Frans Timmermans, said: “This call for proposals comes at just the right time. The EU will invest €1bn in promising, market-ready projects such as clean hydrogen or other low-carbon solutions for energy-intensive industries like steel, cement and chemicals.
“We will also support energy storage, grid solutions, and carbon capture and storage. These large-scale investments will help restart the EU economy and create a green recovery that leads us to climate neutrality in 2050.”
Encouraging low-carbon technology
For the period 2020-2030, the Innovation Fund will allocate around €10bn from the auctioning of allowances under the EU Emissions Trading System, in addition to undisbursed revenues from the Innovation Fund’s predecessor, the NER 300 programme.
The first call will provide funding of €1bn to large-scale clean technology projects to help them overcome the risks linked to commercialisation and large-scale demonstration. This support will help new technologies to reach the market. For promising projects which are not yet ready for market, a separate budget of €8m is set aside to assist with project development.
Eligible sectors from all EU Member States, Iceland and Norway can apply for the funding for clean technology projects under the European Green Deal. The funds can be used in cooperation with other public funding initiatives, such as State aid or other EU funding programmes.
Funding will be determined based on the projects potential to avoid greenhouse gas emissions, their innovation potential, financial and technical maturity, and potential for scaling up and cost-efficiency.
The deadline for submission of applications is 29 October 2020. Projects can apply via the EU Funding and Tenders portal.
