The European Commission has announced a significant funding initiative of €4.6 billion to support decarbonization projects.
The Innovation Fund, one of the world’s largest decarbonization programs, has allocated this budget to aid projects focusing on innovative clean technologies, hydrogen production, and electric vehicle battery manufacturing. The funds are divided into three main streams: €2.4 billion for decarbonization, €1 billion for electric vehicle batteries, and €1.2 billion for hydrogen initiatives.
The primary aim of this funding is to promote projects that align with the European Union’s goal of reducing greenhouse gas emissions by at least 55% by 2030. It supports projects in areas such as hydrogen, clean tech manufacturing, carbon capture, batteries, and energy storage. The funding process involves businesses reviewing eligibility criteria and submitting applications by specific deadlines: April 24, 2025, for general projects and February 20, 2025, for hydrogen initiatives.
The Innovation Fund is significant for its support of up to 60% of the additional capital and operating costs of large projects for a period of 3 to 15 years. The fund’s structure is divided into three calls: Net Zero Technologies (NZT), Electric Vehicle Battery Manufacturing, and the European Hydrogen Bank auction. Each of these streams serves different sectors and technologies, supporting the Green Deal’s objectives.
Net Zero Technologies
The largest call focuses on Net Zero Technologies, offering €2.4 billion to support small to large-scale decarbonization projects. This call encourages proposals from sectors like maritime, aviation, road transport, and renewable energy. Projects are evaluated based on innovation, emission reduction potential, maturity, replicability, and cost efficiency.
For the first time, €1 billion is dedicated to projects that enhance electric vehicle battery cell manufacturing. This initiative aims to boost Europe’s competitiveness in the clean energy transition. Projects are assessed on criteria including manufacturing carbon footprint reduction and security of supply.
The European Hydrogen Bank auction, with a €1.2 billion budget, supports renewable hydrogen production. Projects in this category must meet criteria regarding the credibility of hydrogen production and are ranked based on the bidding price.
