EU Announces EUR4bn in Grants for Deployment of Innovative Decarbonization Technologies

The European Commission has launched a EUR4bn call for decarbonization-focused projects under its Innovation Fund, as reported by ESG Today on November 27. The fund, financed by the proceeds from the EU Emissions Trading System (EU ETS), will allocate a total budget of EUR4bn for projects with distinct budget and capital expenditure (CAPEX) requirements. For example, EUR1.4bn is available for cleantech manufacturing projects with a CAPEX above EUR2.5m, while EUR1.7bn is designated for large-scale decarbonization initiatives with CAPEX above EUR100m. Project owners can apply for grants before April 2024, and these projects will undergo assessment based on their potential to reduce greenhouse gas emissions, innovation level, maturity, replicability, and cost efficiency. The Innovation Fund can cover up to 60% of a project’s relevant costs.

The allocation marks the Commission’s fourth large-scale call for decarbonization-focused projects under the EU Innovation Fund. Previous calls have seen the fund distribute approximately EUR6.5bn to more than 100 innovative projects. The recent call is substantially larger than prior rounds, owing to the bloated revenue from the auctioning of emission allowances under the EU ETS. Projections estimate that the EU ETS will yield around EUR40bn in revenues between 2020 and 2030, earmarked for funding innovative net-zero technologies.

Sources:

https://www.esgtoday.com/eu-commits-e4-billion-for-decarbonization-cleantech-manufacturing-projects/

https://ec.europa.eu/commission/presscorner/detail/en/IP_23_5948