The Innovation Fund is a critical component of the European Green Deal, which aims to set a global benchmark for clean technologies. It aims to facilitate investment in clean energy and industry, boost economic growth, create resilient jobs, and consolidate Europe's technological leadership. The fund primarily supports projects that focus on the following:
- Innovative low-carbon technologies
- Carbon capture and utilization (CCU)
- Carbon capture and storage (CCS)
- Innovative renewable energy generation
- Energy storage
Recent changes to the fund
The Emissions Trading System (ETS) Directive has been revised to include several changes to the Innovation Fund:
1. Increase in size: the Fund was expanded from 450 million ETS allowances to approximately 530 million.
2. Broadening the scope: new sectors such as maritime transport were included, as well as medium-sized projects and a stronger focus on multiple environmental impacts.
3. New financial instruments: The fund now includes "competitive bidding" options such as fixed premiums, contracts for difference (CfDs), and carbon contracts for difference (CCfDs), which can cover up to 100% of the funding gap.
4. Geographic balance: more attention will be paid to a balanced geographic distribution of projects.
Award Criteria
The existing five award criteria have been modified as follows:
1) Assessment of potential to reduce overall climate impact
2) Consideration of scaling-up projects as "innovative"
3) Assessing the potential to address multiple environmental impacts.
4) Simplification of the wording of the cost-effectiveness criteria.
5) Changes to the project scale
Projects are now categorized as follows:
- Small scale: up to EUR 20 million
- Medium scale: over EUR 20 million and up to EUR 100 million
- Large scale projects: Over EUR 100 million
Upcoming deadlines
In November, the 4th call for proposals for grants for small, medium and large projects will be published. In December, the first pilot auction will be held.
It is extremely important to prepare well in advance to apply for your innovative investment projects to the Innovation Fund, as competition is fierce. Contact us at info@tiko-pro.eu before the call opens so that we can validate your idea and begin preparing a high-quality proposal.