In 2020 there will be a first call for projects under a novel Innovation Fund which supports the European Commission’s strategic vision for a climate neutral Europe by 2050. The successor to the NER300, the Innovation Fund will focus on fostering clean innovative technologies, driving them towards the EU market. It is one of the largest funding programs for the demonstration of low carbon technologies across CCS, energy intensive industries, renewables and energy storage. The principle aim of the fund is to ensure that suitable financial incentives are readily available for projects to invest into next generation technologies, all of which will support the European Union’s push towards the low carbon transition.
Funded wholly by the EU ETS, access to up to €10 billion is highly possible (depending on the carbon price). On its inflection, it is expected that the fund will dramatically alter the risk profiles of projects and their market needs, attracting both private and public resources. More information on the EU ETS can be found here.
The Commission will manage the Innovation Fund with ongoing support from a public implementation body; all member states are asked to provide feedback on any key decisions which includes calls for proposals and pre-selected projects. It is expected that a first call for proposals will commence in 2020, followed by regular calls until 2030. Funding will be available for up to 60% of additional capital and operational costs associated with innovation.
Innovation Fund grants are totally inclusive and can be combined with other sources of EU funding, including the Modernisation Fund, Horizon Europe and the Connecting Europe Facility (Innovation Fund).