With a budget of € 10 billion, the Innovation Fund focuses on pioneering CO2-reducing and / or low-carbon technology projects for companies
The Innovation Fund subsidy scheme was established to support large-scale demonstrations and projects of breakthrough CO2-reducing and/or low-carbon technologies. The funding program was set up by the European Commission and runs from 2020 to 2030 with a total budget of € 10 billion. This budget comes from the proceeds of the European Emissions Trading System (ETS). The details of the fund are expected in the summer of 2020 with further elaboration from the European Commission. The fund can be deployed and applied for in an EU country, Norway, or Iceland. Investors may fall outside these countries.
Innovation Fund Budget
As mentioned above, the total budget from 2020 to 2030 is € 10 billion. The first call around June or July 2020 will have a budget of € 1 billion. This can only be requested for large projects. At Innovation Fund you get a maximum of 60% of the relevant costs subsidized. This percentage depends on the different milestones that the project has achieved.
40% of the costs are covered when the milestones that are included in the agreement have been reached. This can be increased to 60% with further milestones being achieved such as reducing GHG emissions during the project. An Innovation Fund project has a duration of 4 years.
Innovation Fund projects
There are different types of projects that can receive funding from the Innovation Fund:
Sustainable energy generation
Products that replace carbon-intensive products
CCS, carbon capture and storage
CCU, carbon capture and utilization
Low-carbon technologies and processes in the energy-intensive industry
Conditions of the Innovation Fund
Companies can submit projects in an independent or consortium context. It is only possible to receive financing from the Innovation Fund when an ETS-obliged company participates. A distinction is made within the fund between large and small projects, but the first call will only focus on large projects in which business maturity is an important criterion.
To be sure that your application is sufficient, it is useful to engage an external party such as MK. With a lot of knowledge and experience about the latest technological trends, subsidies, communication with subsidy providers, management of projects & administration, and applying for subsidies, you can be sure that our team will do everything in its power to secure funding.
Apply for Innovation Fund
You can apply for funding via the website of the European Commission and a two-step application procedure. The first round is “open” with shortened applications, after which a selection is made. There are three criteria that an application must meet during the first round: Prevention of greenhouse gas emissions, degree of innovation, and project maturity. If you are invited to the second round, you must submit a full application and if it has been approved you will receive funding.
The first call is expected to open in June or July 2020 with the deadline for abbreviated applications to be September or October 2020. The budget of the first call is € 1 billion, and the evaluation of the proposals will be handled by independent experts who will be appointed from the Innovation and Networks Executive Agency (INEA).
What is the role of INEA?
The Innovation and Networks Executive Agency (INEA) is the organizer of the Innovation Fund and does executive work for the program and grant management. INEA’s work includes:
Management of calls for proposals and all related procedures
Management of the project proposal submission and evaluation processes, including fitness checks
Guidance and support for applicants
Payment of subsidies from the Innovation Fund
The signing of grant agreements
Providing expert technical support and services to property developers