EU Awards €4.8 Billion in Grants to 85 Net-Zero Projects
The European Commission announced, October 23, 2024, it has selected 85 innovative clean energy projects to receive €4.8 billion in grants from the Innovation Fund, the largest allocation since the fund’s creation in 2020.
The grants will support cutting-edge technologies aimed at reducing emissions and boosting Europe’s clean energy capacity across 18 countries, including Belgium, Germany, Spain, and Sweden.
For the first time, projects of all sizes, from large-scale to pilot initiatives, and those focused on cleantech manufacturing, were awarded funding under the 2023 call for proposals. The selected projects are expected to significantly contribute to Europe’s decarbonisation goals, cutting 476 million tonnes of CO2 emissions over their first decade of operation.
These projects span multiple sectors, including renewable energy, energy storage, industrial carbon management, and net-zero mobility. One of the key focus areas is clean-tech manufacturing, supporting the development of components for wind, solar energy, heat pumps, and batteries. The grants will help establish 3 GW of solar photovoltaic manufacturing capacity and 9.3 GW of electrolyser manufacturing in the EU.
In addition to funding projects that address renewable energy and emissions reduction in energy-intensive industries, the Innovation Fund is also supporting industrial carbon management, which will store at least 50 million tonnes of CO2 annually, contributing to 13% of the EU’s Net-Zero Industry Act (NZIA) targets. Selected projects will also focus on renewable hydrogen production, expected to deliver 61 kilotonnes annually, supporting hard-to-decarbonize sectors like industry and transport.
The maritime sector, in particular, will benefit from projects aimed at retrofitting vessels for renewable fuel and electricity use, alongside efforts to reduce emissions in road transport.
The projects were selected based on their potential to cut greenhouse gas emissions, innovation, operational readiness, replicability, and cost efficiency.
The Commission will formalize grant agreements with the selected projects in early 2025, and the next round of funding proposals will launch in December 2024.
In a pivotal stride towards Europe’s climate neutrality goals, the Innovation Fund has achieved another significant milestone. The unprecedented €4.8 billion in grants will support the largest selection of Innovation Fund projects to date. For the first time, the STEP Seal has been awarded to a number of projects, which can facilitate access to more EU funding opportunities, helping make European industry stronger and more competitive.
Maroš Šefčovič, Executive Vice-President for European Green Deal, Interinstitutional Relations and Foresight
The Innovation Fund is funding more projects than ever before. 85 innovative projects in 18 countries bring cutting-edge clean technologies at the service of climate action. New projects in the maritime, aviation and road transport sectors will boost efforts to reach clean mobility. The Fund is once again demonstrating how the EU ETS is a great tool in reducing emissions, and funding the projects we need to build a climate-neutral and competitive Europe.
Wopke Hoekstra, Commissioner For Climate Action and responsible for transport
