The European Commission’s Innovation Fund 2024 calls closed on 24 April, drawing an unprecedented 373 project proposals aimed at accelerating Europe’s path toward climate neutrality. Funded through revenues from the EU Emissions Trading System (EU ETS), the Commission will allocate up to €3.4 billion to deploy pioneering clean technologies, reinforcing industrial competitiveness while advancing decarbonisation goals.
Launched on 3 December 2024, the Net-zero Technologies call attracted 359 applications from 28 European Economic Area countries. Together, these projects requested €21.7 billion in support—more than nine times the available €2.4 billion budget. The proposals span large-scale, medium-scale, and small-scale initiatives, cleantech manufacturing, and pilot projects, with large-scale submissions comprising 39% of the total. Medium-scale projects accounted for 15%, small-scale for 13%, cleantech manufacturing for 14%, and pilots for 19%.
The thematic spread reflects Europe’s industrial diversity. Energy-intensive industries led with 169 proposals, followed by renewable energy at 67, energy storage at 43, and industrial carbon management at 24. Mobility—including maritime, aviation, and road transport—garnered 50 proposals, while buildings received six. Sectors such as chemicals, cement and lime, refineries, and hydrogen featured prominently, underscoring the breadth of decarbonisation ambitions. If implemented, these projects could collectively avoid 1.8 million tonnes of CO₂ emissions over their first decade of operation.
Aligned with the Clean Industrial Deal, Wind Package, Industrial Carbon Management Strategy, and the Net-Zero Industry Act, the Net-zero Technologies call strengthens the business case for climate-neutral investments, offering a structured pathway for industries to integrate advanced low-carbon solutions.
In parallel, the Commission introduced a dedicated Electric Vehicle Battery Cell Manufacturing call—the IF24 Battery—marking its first targeted support for this strategic sector. With a €1 billion budget, the call received 14 proposals requesting €1.6 billion, reflecting strong interest despite its narrow scope. Projects originated from eight EU countries, led by Germany, followed by France, Bulgaria, and Poland. The aim is to bolster Europe’s battery manufacturing competitiveness, reduce reliance on foreign suppliers, and address supply chain vulnerabilities in green mobility and electricity storage.
Technologies proposed under IF24 Battery include Lithium-ion nickel magnesium cobalt (Li-ion-NMC), solid-state designs, and Lithium-ion iron phosphate (Li-ion-iron) chemistries. Collectively, these projects target avoidance of 138 million tonnes of CO₂ emissions over a 10-year operational period, a scale that could significantly impact Europe’s transport and energy storage sectors.
European Commissioner for Climate Action Wopke Hoekstra remarked, “I am very happy to see industry responding strongly to the Innovation Fund call for proposals year after year. This demonstrates our collective dedication to meeting our climate neutrality objectives. Thanks to the EU Emissions Trading System, we can ensure that carbon costs paid by industry are transformed into tangible investments in our decarbonised future. It is so encouraging to see such a diverse range of innovative projects spanning over many sectors, driving competitiveness and propelling our continent towards a cleaner future.”
With the submission phase complete, proposals now undergo eligibility and admissibility checks before evaluation by external experts. Criteria include degree of innovation, greenhouse gas avoidance potential, manufacturing carbon footprint, project maturity, replicability, and cost efficiency. Results are expected in the second half of 2025, followed by grant agreements.
Projects meeting evaluation standards will receive the Commission’s STEP Seal, regardless of funding selection. This designation promotes visibility and can attract alternative public or private financing. Member States are encouraged to leverage ‘Grants-as-a-Service’ to support projects within their territories using Innovation Fund evaluations, streamlining State aid approval.
Additionally, the European Investment Bank will provide Project Development Assistance to promising but unfunded proposals, offering technical and financial advisory services to improve maturity and competitiveness in future calls.
Since 2021, the Innovation Fund has committed around €12 billion to more than 200 projects across the EEA, using EU ETS auction revenues to catalyse investment in cutting-edge, low-carbon and net-zero technologies.