EU Innovation Fund Advances Decarbonization with Six New Net-Zero Technologies Projects
The European Union's Innovation Fund continues to propel vital decarbonization initiatives with the signing of Grant Agreements for six innovative projects from the 2023 general call for Net-Zero Technologies. These projects, now supported by a total of nearly €319 million in grants financed via the EU Emissions Trading System (ETS), serve as a significant step towards climate neutrality by 2050.
Among these projects is the first Innovation Fund endeavor based in Luxembourg, signifying the expanding geographical scope of Europe's decarbonization efforts. Collectively, these initiatives aim to reduce 24.1 million tonnes of CO2 equivalent over their first decade, directly contributing to greenhouse gas reductions across sectors like hydrogen, hydro/ocean energy, energy storage, and refineries and chemicals.
Each project embodies cutting-edge decarbonization technologies—from carbon capture in Belgian refineries (ARCaDe), to large-scale hydrogen production in the Netherlands (H2M Eemshaven), and innovative plastic recycling solutions in Germany (LARS). These initiatives exemplify technological innovation aligned with both the Net-Zero Industry Act and the Clean Industrial Deal to bolster Europe's industrial competitiveness.
The selection process for these projects involved evaluating 283 applications from 27 countries, based on criteria such as innovation, potential for emission avoidance, project maturity, and cost efficiency. These projects were then invited to formalize their grant agreements. Due to withdrawals, the first six on the reserve list took this step, utilizing the freed-up budget to further accelerate Europe's decarbonization trajectory.
With an estimated revenue of €40 billion through the EU ETS from 2020 to 2030, the Innovation Fund aims to catalyze cutting-edge low-carbon solutions. Up to now, around €12 billion has been allocated, supporting approximately 200 projects across the European Economic Area. The European Executive Agency for Climate, Infrastructure and Environment (CINEA) manages this initiative, under the overall oversight of the European Commission.
Looking ahead, CINEA is currently evaluating project proposals for the 2024 call, with plans to launch the 2025 call by year's end. These continuous efforts underpin Europe’s strategic transition towards climate neutrality and industrial leadership in clean technologies.