The Commission has launched the first call for proposals under the Innovation Fund, a programme for the demonstration of innovative low-carbon technologies, financed by revenues from the auction of emission allowances from the EU’s Emissions Trading System. The Innovation Fund will finance breakthrough technologies for renewable energy, energy-intensive industries, energy storage, and carbon capture, use and storage.
For the period 2020-2030, the Innovation Fund will allocate around €10 billion from the auctioning of allowances under the EU ETS, in addition to undisbursed revenues from the Innovation Fund’s predecessor, the NER 300 programme.
The first call will provide grant funding of EUR 1 billion to large-scale projects for clean technologies 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 the market, a separate budget of €8 million is set aside for project development assistance.
The call is open for projects in eligible sectors from all EU Member States, Iceland and Norway. The funds can be used in cooperation with other public funding initiatives, such as State aid or other EU funding programmes. Projects will be evaluated according to their potential to avoid greenhouse gas emission, innovation potential, financial and technical maturity, and potential for scaling up and cost efficiency.
The deadline for submission of applications to the first stage is 29 October 2020. Projects can apply via the EU Funding and Tenders portal where more details on the overall procedure are available. Applicants will be informed about the results of the evaluation and invited to submit a full application or receive project development assistance in the first quarter of 2021. The information on the evaluation results from the second stage will be provided in the fourth quarter of 2021.
The Innovation Fund aims to create the right financial incentives for companies and public authorities to invest now in the next generation of low-carbon technologies and give EU companies a first-mover advantage to become global technology leaders.
The Innovation Fund will be implemented by the Executive Agency for Networks and Innovation (INEA), while the European Investment Bank will provide project development assistance to promising projects that are not ready for full application.