The European Commission has officially launched the 2023 call for proposals under the Innovation Fund, boasting a historic budget of €4 billion. This funding injection aims to “support the deployment of innovative decarbonization technologies,” supported by revenues generated from the EU Emissions Trading System (EU ETS).
The Innovation Fund, with an estimated revenue of €40 billion from the EU Emissions Trading System between 2020 and 2030, aims to create financial incentives for companies and public authorities to invest in cutting-edge low-carbon technologies.
The fund has already allocated, through previous calls, around €6.5 billion to over 100 innovative projects.
Innovation Fund: 2023 call for proposals
In the 2023 call, the Commission expanded the overall funds available and doubled the budget for clean tech manufacturing projects compared to the previous call.
This budget increase underscores the pivotal role of carbon pricing in driving the European Union’s transition towards a sustainable future, the EU writes in a statement.
As the Commission explains, project promoters seeking support under the 2023 call can submit proposals across five distinct topics, each with distinct budget and capital expenditure (CAPEX) requirements:
- General Decarbonization (large-scale): €1.7 billion available for projects with CAPEX exceeding €100 million.
- General Decarbonization (medium-scale): €500 million available for projects with CAPEX ranging between €20 million and €100 million.
- General Decarbonization (small-scale): €200 million available for projects with CAPEX between €2.5 million and €20 million.
- Cleantech Manufacturing: €1.4 billion available for projects with CAPEX above €2.5 million, focusing on manufacturing components for renewable energy, energy storage, heat pumps, and hydrogen production.
- Pilot: €200 million available for projects with CAPEX above €2.5 million, emphasizing deep decarbonization.
How will the projects be assessed?
The projects will undergo evaluation based on their potential to reduce greenhouse gas emissions, their level of innovation, maturity, replicability, and cost efficiency.
The fund can cover up to 60% of a project’s relevant costs, and any project in the European Economic Area (EEA) can apply. In addition to technologies in energy-intensive industries (including aviation), renewable energy, or energy storage, the calls are now open to the maritime, road transport, and buildings sectors as well.
In a bid to support promising projects that may not be mature enough for a grant or are not selected due to budget constraints, the European Investment Bank’s Project Development Assistance (PDA) is made available.
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Application details and timeline
The deadline to submit proposals is April 9, 2024, at 17:00 (CET). This can be done through the EU Funding and Tenders Portal.
The EU Commission strongly encourages applicants to attend the IF23 Call Info Day, scheduled for December 7, 2023. The event, the Commission writes, is an “opportunity to learn about the new features, discover the application process and ask questions to the European Climate, Infrastructure and Environment Executive Agency (CINEA), which implements the Innovation Fund’s calls for proposal.”
Evaluation results will be communicated to applicants in the fourth quarter of 2024, with successful applicants signing grant agreements in the first quarter of 2025.
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — Featured Photo Credit: Rawpixel.
