EU Innovation Fund

The EU Innovation Fund is one of the world’s largest public funding programmes for demonstrating and deploying innovative net-zero and low-carbon technologies. Established under Article 10a(8) of the EU ETS Directive, it recycles revenues from the auctioning of EU ETS allowances into competitive grants, auctions and project-development assistance across EU Member States and associated eligible territories. Carbon capture, utilisation and storage projects are eligible where they demonstrate substantial greenhouse-gas avoidance, sufficient technological and financial maturity, innovation beyond prevailing practice, scalability and cost efficiency. Funding may support capture facilities, transport and storage infrastructure or integrated industrial decarbonisation projects, but awards are made through specific calls and grant agreements rather than as an automatic entitlement. The Fund should therefore be distinguished from member-state operating support such as carbon contracts for difference and from the EU ETS compliance value of avoided emissions.