Innovation Fund

The Innovation Fund is established by the EU Emission Trading System (EU ETS) Directive for the period of 2021-2030. It focuses on highly innovative technologies and projects within Europe that can bring on significant emission reductions.

Innovation Fund falls between Horizon Europe (that focuses more on proof of concept and piloting), and Connecting Europe Facility and InvestEU that focus more on the roll-out. 

The goal is to enhance businesses’ investments in clean energy and industry to boost economic growth, create local future-proof jobs and reinforce European technological leadership on a global scale.

What can I apply for?


  • ‘Small-scale’ are projects with total capital costs below EUR 7.5 million.
  • The application process is simplified and has only one stage
  • Projects will be selected based on:
    • effectiveness of greenhouse gas emissions avoidance
    • degree of innovation
    • project maturity
    • scalability
    • cost efficiency.


  • ‘Large-scale’ are projects with a capital expenditure above EUR 7.5 million.
  • The application process has two stages:
    • expression of interest, with a first assessment on the project effectiveness, innovation and maturity level. 
    • full application, where projects are assessed on all the criteria, including scalability and cost efficiency.