85 Eco-Initiatives Secure €4.8bn in EU’s Biggest Climate Tech Drive

The EU Innovation Fund has announced its largest-ever funding allocation, supporting 85 cutting-edge projects across 18 countries to boost Europe’s clean technology sector.

The European Commission has committed €4.8 billion in grants to accelerate net-zero projects through the Innovation Fund’s 2023 call. This investment reinforces the EU’s push for a climate-neutral economy.

For the first time, the funding spans projects of various sizes, from large-scale infrastructure to pilot initiatives, with a strong focus on cleantech manufacturing. With this round, total Innovation Fund support has reached €12 billion, a 70% increase since 2020.

The selected projects, across 18 countries including Norway, aim to cut emissions by 476 million tonnes of CO2 equivalent within a decade. All initiatives will be operational before 2030, targeting hard-to-decarbonize sectors.

Maroš Šefčovič, Executive Vice President for the European Green Deal, stated: “This landmark €4.8 billion allocation marks a major step toward Europe’s climate neutrality.”

The grants support key EU policy goals, particularly cleantech manufacturing. Selected projects will add 3 GW of solar photovoltaic and 9.3 GW of electrolyser manufacturing capacity to the EU’s clean energy infrastructure.

A major focus is maritime decarbonization, funding vessel retrofitting and renewable fuel production. Projects will produce 525 kilotonnes of renewable fuels annually for sustainable transport.

“The EU Emissions Trading System remains vital in cutting emissions and financing innovative projects for a climate-neutral Europe,” said Wopke Hoekstra, Commissioner for Climate Action.

Industrial carbon management projects will contribute 13% toward the Net-Zero Industry Act’s target of storing 50 million tonnes of CO2 annually. Additionally, they will generate 61 kilotonnes of renewable fuels of non-biological origin (RFNBO) per year.

To enhance financing access, the European Commission introduced the STEP Seal, a quality label awarded to 149 projects that met Innovation Fund criteria, aiding them in securing public and private funding.

Selection was based on five criteria: greenhouse gas reduction potential, innovation, technical maturity, scalability, and cost efficiency.

Successful applicants will sign grant agreements with the European Climate, Infrastructure, and Environment Executive Agency in early 2025. The next call for proposals launches in December 2024.

Funded by the EU Emissions Trading System, the Innovation Fund is expected to generate €40 billion between 2020 and 2030, making it a key driver of net-zero technologies and a pillar of the European Green Deal Industrial Plan.

This funding round also included first-time recipients from Estonia and Slovakia, expanding the Innovation Fund’s reach across the European Economic Area.