The European Commission (EC) has launched three new funding opportunities under the Innovation Fund, backed by €5.2bn ($6.06bn) sourced from EU Emissions Trading System (EU ETS) revenues focusing on net-zero technologies, low-carbon hydrogen, and decarbonising industrial process heat.
The aim is to advance EU’s 2030 climate and energy targets and achieve climate neutrality by 2050 while boosting industrial competitiveness and resilience.
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This year’s net-zero technologies call allocates €2.9bn to bridge investment gaps, draw in public and private financing, and support Europe’s leadership in clean technology manufacturing and deployment.
It supports decarbonisation projects that use innovative technologies with significant greenhouse gas (GHG) reduction potential, spanning various scales, and manufacturing of components for renewables, energy storage, heat pumps, hydrogen, and electric vehicle batteries.
Clean hydrogen is identified as a substitute for fossil fuels in both heavy industry and transport.
The third auction under the European Hydrogen Bank will allocate €1.3bn to support production of renewable fuels of nonbiological-origin hydrogen or low-carbon electrolytic hydrogen across three topics.
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By GlobalDataSelected projects will receive a fixed premium for up to ten years, paid upon certified hydrogen production.
Meanwhile, the first EU-wide auction to decarbonise industrial process heat (IF25 Heat Auction) launches the Industrial Decarbonisation Bank pilot, targeting a major source of EU GHG emissions.
With up to €1bn, it focuses on electrified and direct-renewable heat production, which represents 75% of industrial emissions.
Support will go to projects that deliver the most cost-effective carbon dioxide abatement, bridging the cost gap with fossil-based solutions.
Open to projects of various sizes across all industrial sectors, the IF25 Heat Auction backs the deployment of heat pumps, electric boilers, resistance and induction heating, solar thermal, geothermal, and hybrid technologies.
It offers an output-based fixed premium tied to verified decarbonised heat production for up to five years.
EC clean, just and competitive transition executive vice-president Teresa Ribera said: “By channelling €5.2bn of EU ETS revenues into net-zero technologies, hydrogen and industrial heat decarbonisation, Europe is not just setting the stage for a greener future and technological leadership but investing in its own future.
“The first-ever pilot auction of the Decarbonisation Bank, is delivering on one of the key pillars of the Clean Industrial Deal, opening the way for the €100bn that is foreseen to be channelled into the decarbonisation of our industry. This will support EU industry in becoming the global innovation leaders of tomorrow.”
