In the very first week of its new mandate, the European Commission is allocating €4.6 billion for the development of zero-emission technologies, production of batteries for electric vehicles and renewable hydrogen under the Innovation Fund.
The announcement was made on the official website of the central executive body of the European Union.
The European Commission noted that these advanced technologies are key to ensuring the competitiveness of European industry and achieving climate goals. The total amount of funding – €4.6 billion – will be divided as follows:
- €3.4 billion to accelerate the deployment of innovative decarbonization technologies in Europe, including batteries for electric vehicles;
- €1.2 billion to stimulate the production of renewable hydrogen. An additional €700 million will be provided by 3 Member States.
The first amount will be distributed through 2 tenders, the second – through the auction of the European Hydrogen Bank. Both the calls and the auction are financed by the Innovation Fund from the proceeds of the EU Emissions Trading System (ETS EU).
All three projects include new sustainability criteria to incentivize European industry. The battery call and the hydrogen bank auction will also include specific sustainability criteria to protect Europe from dependence on a single supplier.
The overall €2.4 billion Clean Technology Call (IF24 Call) will support decarbonization projects of various scales, as well as projects aimed at producing components for renewable energy, energy storage, heat pumps, and hydrogen production.
Selection criteria
Projects submitted to the Net-Zero Technology Competition will be evaluated based on
- their potential to reduce greenhouse gas emissions
- the degree of innovation;
- project maturity;
- the possibility of its replication;
- economic efficiency.
Innovations
For the first time in the Innovation Fund call for proposals, Member States will have the opportunity to complement the Net-Zero IF call with 24 national funding schemes. This new option is called “Grants as a Service”. It allows Member States to benefit from the Innovation Fund's evaluation process and simplified state aid approval process.
For the first time, the €1 billion IF24 Battery call will support projects that can produce innovative electric vehicle batteries or introduce innovative production methods, processes, and technologies.
Successful clean tech and battery project applicants are expected to sign grant agreements by the first quarter of 2026, and renewable hydrogen auction participants are expected to sign within 9 months of the call closing.
At the end of October, EcoPolitic wrote that the European Commission had selected 85 innovative zero-emission projects that will receive €4.8 billion in grants from the European Innovation Fund. We also told you how well the EU carbon market worked in 2023-2024.
