A European Union fund aimed at supporting innovative projects and technologies that contribute to the reduction of greenhouse gas emissions. It uses funds from the sale of EUAs through auctions.
The Innovation Fund is one of the world’s largest funding programs for innovative low-carbon technologies, established by the European Union to accelerate the transition to a climate-neutral economy. It provides financial support to groundbreaking projects in renewable energy, energy-intensive industries, energy storage, and carbon capture, use, and storage (CCUS).
Financed through revenues from the auctioning of allowances under the EU Emissions Trading System (EU ETS), the Innovation Fund focuses on projects that demonstrate significant potential to reduce greenhouse gas emissions while fostering technological advancements and market deployment.
Objectives:
- Support Innovation: Financing large-scale and small-scale projects that push the boundaries of existing low-carbon technologies.
- Promote Scalability: Encouraging solutions that can be replicated or scaled up across sectors and regions.
- Enhance Competitiveness: Helping European industries maintain leadership in the global green economy.