The Innovation Fund supports innovative projects to reduce carbon emissions, promoting the transition to a sustainable economy. Find out how it works and which Italian initiatives were awarded in 2023
The Innovation Fund is a funding programme established by the European Commission to support the development and commercialisation of innovative low-carbon technologies. Its aim is to accelerate Europe's transition to climate neutrality by financing projects that significantly reduce greenhouse gas emissions.
What topics does it cover?
A wide range of decarbonisation issues are funded, including:
- Renewable Energy
- Energy storage
- Carbon capture and utilization
- Energy efficiency in industrial processes
What it offers
The Innovation Fund annually publishes calls for project proposals of various sizes:
- Large Scale: projects with expected expenditure exceeding 100 million euros
- Medium Scale: projects with expenditures between 20 and 100 million euros
- Small Scale: projects with expenditures below 20 million euros
Selected projects receive non-repayable grants of up to 60% of costs, according to the methodology indicated in the call. Up to 40% of the grants are paid based on predefined milestones, while the remainder depends on the effectiveness in terms of avoided emissions. The maximum duration of the projects is 10 years.
Who can apply?
Companies, consortia, research organisations and other entities developing innovative low-carbon technologies are eligible to apply. Projects must demonstrate significant emission reduction potential and a high degree of innovation.
Italian projects winners of the 2023 edition
In 2023, Italy received an important recognition thanks to eleven selected projects, spanning different sectors such as refining, steel and energy, chosen for their innovative potential in decarbonization. Among the awarded initiatives, Herambiente and Marcegaglia will build carbon capture and storage plants, while Enel will develop a battery energy storage system in an existing hydroelectric plant. These projects will not only help reduce CO₂ emissions, but will also strengthen Italy's position as a leader in the transition to a sustainable economy.
Upcoming Deadlines
The Commission has announced that the next call IF2024 – Auction for Renewable Hydrogen Production will open on 3 December 2024.
Learn more and how to apply
For more information and to apply, visit the dedicated page of the Ministry of Environment and Energy Security.
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