The European Commission's Innovation Fund has opened the window for proposals with a budget of EUR 4 billion (US$ 4.3 Billion) focused on the deployment of innovative decarbonization technologies.

The initiative is financed by proceeds from the EU Emissions Trading System (EU ETS), highlighting the significance of carbon pricing in driving the green transition. The Commission has augmented the total available funds and doubled the budget designated for cleantech manufacturing projects in comparison to the previous call. A sum of EUR1.4 billion (USD 1.5 Billion) is allocated to enhance industrial manufacturing capacity, technology leadership, and supply chain resilience in Europe. Project evaluations will consider factors such as potential greenhouse gas emissions reduction, innovation level, maturity, replicability, and cost efficiency. The Innovation Fund can cover up to 60% of a project's relevant costs. With an estimated revenue of EUR40 billion (USD 43.7 Billion) from the EU Emissions Trading System between 2020 and 2030, the Innovation Fund aims to provide financial incentives for companies and public authorities to invest in cutting-edge low-carbon technologies, fostering Europe's transition to climate neutrality. The Innovation Fund has already granted approximately EUR6.5 billion (USD 7.1 Billion) to over 100 innovative projects through its previous calls for proposals.