- Sector
- Public
- Level of governance
- EU
- Country
- AustriaBelgiumBulgariaCroatiaCyprusCzechiaDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyLatviaLithuaniaLuxembourgMaltaNetherlandsPolandPortugalRomaniaSlovakiaSloveniaSpainSwedenNorwayIceland
- Lighthouse
- Atlantic and Arctic basinMediterranean Sea basinBaltic and North Sea basinDanube River basin
- Funding mechanisms
- Grants
- Managing institutions
- European CommissionEuropean Climate, Infrastructure and Environment Executive Agency (CINEA)European Investment BankParticipating countries
- Mission Objectives
- 3. Carbon Neutral and Circular Blue Economy
Description of the funding initiative
This is the EU fund for climate neutrality, focusing on the decarbonisation of energy and industry whilst supporting competitiveness. The resources of this fund come from the monetisation of carbon units under the EU Emissions Trading System (EU ETS) – they could reach EUR 40 billion over 2020 to 2030, assuming a carbon price of €75/tCO2.
Overview of eligibility requirements for applicants
The Innovation Fund focuses on highly innovative technologies and flagship projects within Europe that can bring about significant emission reductions. The projects need to be sufficiently mature in terms of planning, business model and financial and legal structure. The fund awards grants through calls for proposals and through competitive bidding procedures (auctions).
Regular grant award criteria are:
- Effectiveness of greenhouse gas emissions avoidance
- Degree of innovation
- Project maturity
- Replicability
- Cost efficiency
Projects applying for competitive bidding are checked based on minimum qualification criteria and then ranked according to the auction price. The detailed scoring and ranking methodology, as well as possible additional criteria for geographical and sectoral balance, are set in each call for proposals.
Rules on co-financing
The Innovation Fund supports up to 60 % of project costs for regular grants and up to 100% for competitive bidding of the relevant costs. This is calculated according to the methodology indicated in each call for proposals, and usually covers capital and operational costs minus revenues over the first ten years of operation.
The grants are disbursed in a flexible way based on project financing needs, taking into account the milestones achieved during the project lifetime. For regular grants, up to 40% of the grant can be given based on pre-defined milestones before the whole project is fully up and running. For competitive bidding the payments are scheduled only during the operational (reporting) period of the projects.
The Innovation Fund grant is not state aid, meaning applicants can combine the Innovation Fund grant with other public subsidies. However, the amount of public subsidy a project is permitted to receive with depend on cumulative maximum amounts set in the applicable state aid rules.
Procedures to submit proposal
Multiple calls of the Innovation Fund will be held regularly between 2020 and 2030:
- Large-scale projects: Capital expenditure more than € 7.5 Million: The first call launched on 3 July 2020, and the European Commission will open new calls in the second half of every year.
- Small-scale projects: Capital expenditure less than € 7.5 Million: The first call launched on 1 December 2020. The European Commission will open new calls in the first half of every year.
Application via Funding & Tender Opportunities portal: https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/p…
Relevant websites
https://cinea.ec.europa.eu/programmes/innovation-fund_en
https://climate.ec.europa.eu/eu-action/eu-funding-climate-action/innova…
Contact points
National Contact Points can be found at https://climate.ec.europa.eu/eu-action/eu-funding-climate-action/innova…
Questions on fund: https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/s…
