REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of the Innovation Fund in 2024
Date: 2025-12-17
Institutions: Directorate-General for Climate Action, European Commission
Subjects: EU environmental policy, EU industrial policy, European Economic Area, carbon neutrality, clean technology, competitiveness, fund (EU), greenhouse gas, innovation, project funding

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 17.12.2025  COM(2025) 770 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of the Innovation Fund in 2024  
 
 
Table of Contents 

1. 

Project portfolio contributions to the EU’s climate neutrality objectives ...................... 2 

2.1.1. 
2.1.2. 

2024 Implementation milestones ........................................................................................ 4 
2. 
2.1.  Grant calls ............................................................................................................................. 4 
IF23 NZT call results ........................................................................................... 4 
Launch of the IF24 calls ....................................................................................... 7 
2.2.  Auctions ................................................................................................................................ 8 
IF23 auction results .............................................................................................. 8 
2.2.1. 
Launch of the IF24 auction .................................................................................. 9 
2.2.2. 
Auctions-as-a-Service .......................................................................................... 9 
2.2.3. 
Links with other programmes ............................................................................................. 10 
European Investment Bank (EIB) ...................................................................... 10 
2.3.1. 
Strategic Technologies for Europe Platform (STEP) ......................................... 10 
2.3.2. 

2.3. 

3. 
State of the Innovation Fund Portfolio in 2024 .............................................................. 11 
3.1.  Overview of call results ...................................................................................................... 11 
Project maturity, implementation status and challenges ..................................................... 12 
3.2. 
3.3. 
Portfolio by sector ............................................................................................................... 12 
3.4.  Geographical balance .......................................................................................................... 15 
3.5.  GHG avoidance ................................................................................................................... 18 

4. 
Communicating and raising visibility ............................................................................. 18 
4.1.  NCP network....................................................................................................................... 18 
Innovation Fund expert group and stakeholder engagement ............................................... 19 
4.2. 
4.3.  Knowledge sharing ............................................................................................................. 19 
Success stories .................................................................................................................... 19 
4.4. 

5. 

Conclusion ......................................................................................................................... 20 

1 

 
 
 
 
 
Under Article 10a(8) of the EU ETS Directive, the European Commission must report annually to 
the Climate Change Committee on the implementation of the Innovation Fund (‘the Fund’), which 
aims to bring solutions to decarbonise sectors covered by the EU Emissions Trading System (EU 
ETS) to market across the European Economic Area (EEA). This funding instrument supports the 
deployment of innovative technologies and flagship projects that promise significant greenhouse 
gas  (GHG)  emission  reductions  and  can  demonstrate  ‘clean  industry’  business  cases.  It  was 
designed as part of the European Green Deal and in line with the goals of the Paris Agreement to 
support Europe’s transition to climate neutrality while bolstering its competitiveness. 

The  Fund  supports  projects  through  lump  sum  grants  (regular  grants)  and  unit  contributions 
(auctions). 

This report details the allocation of funding awarded to projects by sector and eligible country and 
analyses  their  contributions  to  EU  policy  objectives,  covering  the  Fund’s  implementation  from 
1 January to 31 December 2024. 

1.  PROJECT PORTFOLIO CONTRIBUTIONS TO THE EU’S CLIMATE NEUTRALITY 

OBJECTIVES 

The Green Deal Industrial Plan aims to increase the competitiveness of Europe’s net-zero industry, 
in particular through the Net-Zero Industry Act (NZIA), which sets goals for net-zero industrial 
capacity and accelerates the deployment of such capacity. The Fund directly supports these policies 
by introducing a dedicated topic for clean tech manufacturing with EUR 1.4 billion in budget under 
the  IF23  NZT  call  for  regular  grants.  Overall,  this  has  led  to  the  Fund  supporting  a  robust 
portfolio (1)  of  projects  to  promote  the  manufacturing  of  key  technologies  in  the  transition  to 
climate neutrality. In total,  25 new clean tech manufacturing  projects  have been selected in the 
IF23 NZT call, in addition to the 15 existing projects focused on developing, building and operating 
manufacturing  plants  for  key  components  in  energy  storage,  renewable  energy  and  energy-
intensive industries. 

(i)  This  will  bring  the  Fund’s  total  support  for  EU  net-zero  manufacturing (2)  to 
EUR 2.4 billion. These projects aim to install 8.1 GW per year of solar PV manufacturing 
capacity and 11.6 GW per year of electrolyser production capacity. 

(ii)  In total,  41  innovation projects and  more than EUR 5 billion from the Innovation Fund 
have been dedicated to supporting industrial carbon management since 2020. This includes 
up to 18.6 million tonnes per year of CO2 capture capacity for carbon capture and storage 
(CCS) (which could meet 37% of the  CO2 injection capacity  target under the Net-Zero 
Industry Act) and up to 11.7 million tonnes per year of CO2 injection capacity (23% of the 
CO2 injection capacity target under the Net-Zero Industry Act). 

The  Fund  will also  increase  the share  of renewables in  the  electricity  mix and improve  energy 
security by supporting targeted technology deployments outlined in the revised Renewable Energy 
Directive, the  European  wind power action plan and the strategy to deliver on the EU offshore 
renewable energy ambitions. Including  IF23-selected projects, the Innovation Fund  supports 11 
wind  or  wind  manufacturing  projects  (granting  EUR 375 million  in  aid),  14  solar  and  solar 
manufacturing projects (EUR 607 million), five hydro and ocean projects (EUR 118 million) and 
one geothermal project (EUR 92 million). 

(1) IF23-awarded projects are included in the 2024 report although they signed their grant agreement in early 

2025. 

(2) Projects in Innovation Fund sectors manufacturing components for renewable energy, energy storage or 

energy-intensive industry. 

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The  REPowerEU  plan  highlights  hydrogen  produced  using  renewable  electricity,  known  as 
‘RFNBO (3)  hydrogen’,  as  a  climate-neutral  option  for  hard-to-decarbonise  sectors.  The  Fund 
supports the demonstration of innovative renewable hydrogen-based technologies and thus plays 
an essential role in delivering the EU hydrogen strategy. With the announced and existing IF23 
results, funding is granted to 27 projects with the capacity to produce more than 750 kilotonnes of 
RFNBO and low-carbon hydrogen per year. 

Energy storage is key both for the mobility sector and for balancing electricity supply at grid level. 
The Innovation Fund has granted EUR 752 million to 13 projects for mobility, intraday and long-
term storage. These include thermal energy storage in granite rocks, underground heat storage for 
district  heating  systems,  grid-scale  battery  energy  storage  systems  (BESSs)  and  pumped  hydro 
storage. 

The  Fund  also  supports  the  development  of  alternative  fuels,  in  line  with  the  Regulations  on 
ReFuelEU Aviation and FuelEU Maritime: 

(i)  EUR 1.6 billion for fuel projects, including EUR 612 million for fuel produced exclusively 
for the transport sector. These include 14 hydrogen (EUR 522 million), five e-methanol 
(EUR 273 million), three ammonia (EUR 530 million), two SAF (EUR 206 million), two 
e-methane (EUR 87 million) and one bio-LNG (EUR 4 million) projects. 

(ii)  Eight  projects  focused  on  mobility  aim  to  avoid  27 million tCO2-eq.  These  include  six 
projects  in  the  maritime  sector  receiving  dedicated  support  of  EUR 211 million  and 
EUR 95 million in funding for an electric aircraft. 

Lastly, the Fund’s projects display significant potential to help meet the European Climate Law’s 
goals of reducing GHG emissions by 963 Mt CO2-eq over 10 years (4). Given the high replicability 
potential of the technologies deployed, this will be a substantial contribution to making Europe the 
first climate-neutral continent in the world by 2050. 

At the end of 2024, the Innovation Fund had signed or selected 199 projects across 26 countries, 
allocating a total of EUR 11.2 billion in support. 

The table below provides an overview of these projects by category: 

IF23-selected 

Existing portfolio 

Combined 

Count 

Funding 

Count 

Funding 

Count 

Funding 

Carbon capture and 
geological storage (CCS) 
Energy-intensive 
industries (EIIs) 

8 

€936 160 409 

12 

€1 987 720 372 

39 

€1 831 432 232 

61 

€3 278 349 963 

Energy storage (ES) 

12 

€1 099 273 509 

16 

€374 380 998 

Renewable energy 
storage (RES) 

18 

€524 228 263 

25 

€799 278 346 

Mobility (MOB) 

8 

€377 956 916 

0 

€- 

Total 

85 

€4 769 051 328 

114 

€6 439 729 680 

20 

100 

28 

43 

8 

199 

€2 923 880 781 

€5 109 782 195 

€1 473 654 507 

€1 323 506 609 

€377 956 916 

€11 208 781 008 

(3) Renewable fuel of non-biological origin. 

(4) Including IF23-selected projects. 

3 

 
 
 
 
 
 
 
2.  2024 IMPLEMENTATION MILESTONES 

2.1.  Grant calls 

2.1.1.  IF23 NZT call results 

On 12 April 2024 the Directorate-General for Climate Action (DG CLIMA) announced that 337 
proposals from 27 countries had been submitted under the 2023 Innovation Fund call for proposals 
for  net-zero  technologies  (IF23  NZT  call) (5).  The  helpdesk  was  opened  during  the  proposal 
submission period and answered 1 106 questions from applicants. 

The proposals, which aim to reduce GHG emissions by nearly 1.4 billion tCO2-eq over their first 
10 years  of  operation,  applied  for  EUR 24.6 billion  in  total  (more  than  six  times  the  available 
budget). The unprecedented level of participation in the IF23 call confirms the crucial role the Fund 
plays  in  supporting  European  clean  tech  front  runners  and  scaling  up  the  EU’s  manufacturing 
capacity for net-zero technologies. 

The number of proposals received for each eligible topic varies: 

(i)  137 for general large-scale, 
(ii)  56 for clean tech manufacturing, 
(iii) 51 for general medium-scale and pilots, 
(iv) 42 for general small-scale. 

Under clean tech manufacturing, most proposals applied for the manufacturing of components for 
hydrogen production. The rest applied for the battery value chain and for renewable energy: solar, 
wind and heat pumps. 

In the mobility (6) category (10% of the number of proposals received), more than 70% of proposals 
applied for the maritime sector. 

On  23 October  2024,  at  the  end  of  the  evaluation  procedure,  DG  CLIMA  announced  it  was 
investing  nearly  EUR 4.8 billion  of  emissions  trading  revenue  in  85  projects  selected  from  18 
countries (7).  These  projects  should  enter  into  operation  before  2030  and  could  reduce  GHG 
emissions by about 476 million tCO2-eq over their first 10 years of operation. 

The number of projects selected for each eligible category varied: 

(i)  47 for energy-intensive industries, including carbon capture, use and storage (out of 204 

proposals received), 

(ii)  18 for renewable energy (out of 65), 
(iii) 12 for energy storage (out of 35), 
(iv) 8 for mobility, including maritime, air and road transport (out of 34). 

For the first time, all 149 projects that successfully passed the evaluation received the STEP Seal, 
a new quality label awarded to high-quality projects contributing to the objectives of the Strategic 
Technologies for Europe Platform (STEP). In addition to the 85 projects preselected for funding, 
64  projects  that  scored  above  all  evaluation  thresholds  but  were  not  selected  for  funding  also 

(5) The IF23 call was launched on 23 November 2023 with an available budget of EUR 4 billion, including 

EUR 1.4 billion specifically for clean tech manufacturing projects. 

(6) This new category was added to comply with the 2023 revision of the EU ETS Directive. 
(7)  Now  including  Estonia  and  Slovakia.  The  number  of  projects  selected  may  change  after  the  grant 

agreement has been drawn up. 

4 

 
 
 
received the seal. This will make it easier for them to access further opportunities for public and 
private support. 

s
n
o

i
l
l
i

M

€2.500

€2.000

€1.500

€1.000

€500

€0

Large Scale

Medium Scale

Small Scale

Pilot

Manufacturing

Original Budget

Awarded Funding

Figure 1: Grant value awarded and original budget of projects by call topic (IF23 NZT)8 

12

10

8

6

4

2

0

Figure 2: Number of projects selected for funding by first location country (IF23 NZT) 

(8) Under Article 3 of the Commission Decision on the financing of actions under the Innovation Fund, an 
increase of up to 20% above the maximum contribution is allowed. This was used due to the high quality 
of applications received in the call. 

5 

 
 
 
 
 
 
 
s
n
o

i
l
l
i

M

€700

€600

€500

€400

€300

€200

€100

€0

Figure 3: Grant value awarded for projects by first location country (IF23 NZT) 

s
n
o

i
l
l
i

M

€2.000

€1.800

€1.600

€1.400

€1.200

€1.000

€800

€600

€400

€200

€0

Carbon capture
and geological
storage (CCS)

Energy Intensive
Industries (EII)

Energy Storage
(ES)

Mobility (MOB)

Renewable
Energy (RES)

Figure 4: Grant value awarded by project category 

6 

 
 
 
 
 
 
€700

€600

s
n
o

i
l
l
i

M

€500

€400

€300

€200

€100

€0

Figure 5: Grant value awarded by project sector 

2.1.2.  Launch of the IF24 calls 

On  3 December  2024  the  Commission  launched  the  2024  Innovation  Fund  calls,  with 
EUR 4.6 billion  earmarked  to  boost  net-zero  technologies,  electric  vehicles,  battery  cell 
manufacturing and renewable hydrogen. 

The overall budget was split into three calls for proposals: 

(i)  EUR 2.4 billion available for net-zero technologies (IF24 NZT call), 
(ii)  EUR 1 billion available for electric vehicle battery cell manufacturing (IF24 battery), 
(iii) EUR 1.2 billion for the production of renewable hydrogen (9) (IF24 auction). 

All three calls include new resilience criteria to support REPowerEU and protect the EU from 
dependency on a single supplier. 

The IF24 NZT call aims to support both decarbonisation projects of different scales and projects 
focusing on the manufacturing of components for renewable energy, energy storage, heat pumps 
and hydrogen production. Projects will be assessed on the basis of their GHG reduction potential, 

(9) Categorised as renewable fuels of non-biological origin (RFNBO). 

7 

 
 
 
 
degree of innovation, project maturity, replicability and cost-efficiency. For the first time, countries 
were also able to supplement the overall budget of regular calls with national funding schemes for 
decarbonisation and clean energy generation projects (10). This new option, called ‘Grants-as-a-
Service’,  allows  eligible  countries  to  draw  on  the  Innovation  Fund’s  evaluation  process  and 
streamline the State aid approval process. 

The IF24 battery call is a novelty. It aims to bolster the EU’s battery manufacturing industry by 
supporting  projects  that  produce  innovative  electric  vehicle  battery  cells.  Selected  projects  will 
support  the  EU’s  transition  to  a  clean,  competitive  and  resilient  industrial  base,  reducing 
dependence  on  imports  and  fostering  the  development  of  clean  technologies  and  industrial 
leadership. 

On  17-18 December  2024,  CINEA  and  CLIMA  organised  online  info  days  to  present  the  key 
features  and  award  criteria  of  the  two  calls  and  lessons  learned  from  previous  calls.  Project 
promoters  had  until  24 April  2025  to  apply.  Successful  applicants  are  expected  to  sign  grant 
agreements by the first quarter of 2026. 

The IF24 auction is described further in the report. 

2.2.  Auctions 

2.2.1.  IF23 auction results 

On 19 February 2024 CINEA announced that 132 bids from 17 countries had been received for the 
IF23 auction (11). The auction was oversubscribed by 15 times. The helpdesk was opened during 
the bid submission period and answered 352 questions from applicants. 

The total planned electrolyser capacity for all bids was 8.5 gigawatts (GW). Over 10 years, this 
could lead to a total production volume of 8.8 million tonnes of renewable hydrogen. Each year 
this could cover almost 10% of the REPowerEU 2030 domestic renewable hydrogen production 
target. 

The bids submitted ranged from EUR 0.37 to EUR 4.50 (ceiling price) per kilogram of hydrogen 
produced. 

Of the 132 bids, 119 were eligible and admissible. Following their evaluation, CINEA ranked the 
approved projects on the basis of their bid price. 

By  30 April  2024  seven  projects  had  been  selected  to  receive  the  IF  grant  of  nearly 
EUR 720 million.  They  submitted  bids  with  a  price  ranging  from  EUR 0.37  to  EUR 0.48  per 
kilogram of renewable hydrogen produced. 

By  7 October  2024  six  of the  seven  projects  had signed  their  respective grant agreements.  The 
projects will be implemented in four countries (12). The total amount of support comes to EUR 695 
million.  They  will  receive  a  subsidy  ranging  from  EUR 8 million  to  EUR 245 million  for 
installations with a megawatt electric (MWe) capacity ranging from 35 MWe to 500 MWe. They 
will  receive  the  subsidy  awarded  only  if  they  produce  certified  and  verified  RFNBO  hydrogen 
within a period of up to 10 years. 

(10)  Grants-as-a-Service is available also for clean tech manufacturing projects as of 2025. 

(11) The IF23 auction was launched on 23 November 2023 with an available budget of EUR 800 million. 

Bidders had until 8 February 2024 to apply. 

(12) Finland, Norway, Portugal and Spain. 

8 

 
 
 
Projects selected now have up to five years to start producing renewable hydrogen. They have the 
potential to produce up to 1.52 million tonnes of RFNBO hydrogen during their first 10 years of 
operation, avoiding more than 10 million tCO2-eq. Their production will serve many sectors, such 
as maritime, heavy-duty transport, agriculture and the production of e-methane and e-methanol. 

1600

1400

1200

1000

800

600

400

200

0

MP2X

Catalina

SKIGA

HYSENCIA

Grey2Green-II

eNRG Lahti

s
n
o

i
l
l
i

M

€800 

€700 

€600 

€500 

€400 

€300 

€200 

€100 

€-

MP2X

Catalina

SKIGA

HYSENCIA

Grey2Green-II

eNRG Lahti

Bid capacity (MWe)

Total requested
funding (EUR)

Figure 6: Bid capacity of the six signed RFNBO products successful in the IF23 auction 

2.2.2.  Launch of the IF24 auction 

The IF24 auction, the second auction under the European Hydrogen Bank, aimed to support both 
projects  for  the  production  of  RFNBO  hydrogen  regardless  of  the  sector  in  which  it  will  be 
consumed (EUR 1 billion) and projects with offtakers in the maritime sector (EUR 200 million). 
The auction’s budget was increased by EUR 400 million compared to the IF23 auction. 

To prepare for application, project promoters could consult the call documents and the ‘Questions 
and answers’ section of the EU Funding & Tenders Portal. The Commission also encouraged them 
to discuss their completion guarantee with a financial institution as soon as possible in order to 
increase their chances of success. On 10 December 2024 CINEA organised an online Info Day to 
present the key features and award criteria of the new auction and lessons learned from the previous 
auction. Bidders had until 20 February 2025 to apply. Successful bidders are expected to sign grant 
agreements within nine months of the call closure. 

2.2.3.  Auctions-as-a-Service 

During the IF23 auction, the Commission offered for the first time the possibility of an auction-as-
a-service  (AAAS).  The  scheme  allows  eligible  countries  to  finance  bidders  not  selected  for 
financial support due to budgetary limitations. Eligible countries can thus benefit from an EU-wide 
selection process and use national funds to support projects on their territory without the need to 
run a separate auction at national level. This ensures fast and streamlined approval of State aid, 
reducing administrative burdens and costs for all parties. 

9 

 
 
 
Germany was the first country to make use of this feature, allocating up EUR 350 million from its 
budget to eligible bids located in the country. That decision was approved under EU State aid rules 
on 5 April 2024 (13). 

On 18 November 2024 Spain, Lithuania and Austria announced that they would participate in the 
scheme  for  the  IF24  auction,  pledging  up  to  EUR 836 million  from  national  funds  to  support 
projects in their countries. 

Mobilising  funding  under  a  single  EU  auction  platform  is  an  efficient  way  of  increasing 
opportunities  while  reducing  costs  for  industry.  These  actions  demonstrate  Member  States’ 
commitment  to  meeting national and  EU targets  for the  uptake of  clean  energy and  supporting 
industry decarbonisation. 

2.3.  Links with other programmes 

2.3.1.  European Investment Bank (EIB) 

On  2 May  2024  the  EIB  announced  that  it  was  backing  the  roll-out  of  EAVOR  LOOP,  an 
innovative power and geothermal heating project in Bavaria, with a loan of almost EUR 45 million. 
The  project,  selected  during  the  Innovation  Fund’s  second  large-scale  call  for  proposals,  had 
already signed a grant at the beginning of 2023. That decision highlights the valuable role played 
by the Fund in funding and supporting key scalable technologies for achieving climate neutrality 
and energy security. 

On  3 December  2024  the  Commission  and  the  EIB  announced  a  new  partnership  to  support 
investments  in  the  EU’s  battery  manufacturing  sector.  This  partnership  will  result  in  an 
EUR 200 million top-up (loan guarantee) to the InvestEU programme from the Fund. It comes in 
addition to the EUR 1 billion available for electric vehicle battery cell manufacturing under the 
IF24 battery call. As part of the new partnership, the EIB is also investing a further EUR 1.8 billion 
in the broader battery value chain. These joint efforts will result in a total of EUR 3 billion in public 
support for the development of a competitive and sustainable European battery industry. 

The EIB is also responsible for project development assistance (PDA) to facilitate access to funding 
from the Fund and other EU schemes, national grants and private financing. In 2024 the EIB signed 
and implemented 23 PDA agreements. In total, 30 PDA assignments were completed. Since the 
start of the programme, 62 projects have signed a support agreement and been implemented. The 
impact  of  PDA  is  increasingly  visible.  In  2024  nine  previously  unsuccessful  projects  secured a 
grant under the IF23 call. PDA has been expanded to include project developers who have not yet 
applied to the Fund, with applications now being made directly to the EIB. 

In addition to enabling promoters to refine their proposals, the EIB also makes it easier to access 
other funding opportunities. In 2024 four projects received a grant or were awarded special status 
at national level, three were selected by Breakthrough Energy Catalyst as either a grant/funding 
recipient or an energy venture, one was included in the list of projects of common interest (PCIs), 
and another in the STEP Seal list of projects. 

2.3.2.  Strategic Technologies for Europe Platform (STEP) 

On  7 February  2024  the  Commission  launched  STEP,  an  initiative  aimed  at  increasing  the 
industrial competitiveness of the EU and reducing its external dependencies. STEP leverages the 

(13) See the Guidelines on State aid for climate, environmental protection and energy. 

10 

 
 
 
financial resources from a range of EU funding programmes, including the Innovation Fund. It 
applies a quality label to give greater visibility to promising projects in clean and resource-efficient 
and deep and digital technologies. 

In  October  2024  the  Commission  selected  85  innovative  net-zero  projects  to  receive  a  total  of 
EUR 4.8 billion  in  grants  under  the  IF23  call.  All  of  those  projects  received  a  STEP  Seal.  An 
additional 64 unfunded projects also received a seal, 39 of which agreed to their information being 
published by the Commission. 

As of December 2024 the first list of projects awarded a STEP Seal was published on the STEP 
Portal.  The  Commission  actively  promotes  those  projects  among  public  funding  bodies,  e.g. 
managing authorities of Cohesion Policy Funds and the recovery and resilience plans in Member 
States, and among private investors. As a badge of distinction, the STEP Seal should help projects 
attract private finance. 

3.  STATE OF THE INNOVATION FUND PORTFOLIO IN 2024 

3.1.  Overview of call results 

Since  2020  the  Commission  has  organised  eight  calls  for  proposals  for  regular  grants  and  two 
competitive bidding auctions (14). By the end of 2024, 131 projects had signed grant agreements 
for a total of EUR 7.4 billion in support. Agreements for a further 86 projects were being drawn 
up. All calls were oversubscribed, the average amount requested being nine times higher than the 
available budget. 

337 

281 

149 

85 

 350

 300

 250

232 

311 

292 

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 200

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7 

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17 

16 

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-

81 

39 

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48 

17 

16 

-

6 

-

-

SSC 2020 LSC 2020 SSC 2021 LSC 2021 LSC 2022 SSC 2022

IF23
Auction

IF23 NZT

Received proposals

Eligible proposals

Above Threshold proposals

Awarded proposals

Figure 7: Breakdown of call participation results (15) 

(14) The IF24 call and auction were open for submission of proposals as of 31 December 2024. 

(15)  As eligible auction projects are ranked by price, no ‘above threshold’ category is relevant. 

11 

 
 
 
 
 
 
 
3.2.  Project maturity, implementation status and challenges 

By  the  end  of  2024  a  total  of  36  projects  had  achieved  the  ‘Financial  close’  milestone.  The 
milestone indicates that the projects have secured both the necessary funding and the environmental 
and construction permits. Of those 36 projects, seven have progressed to the next milestone, ‘Entry 
into operation’, as approved by CINEA. Meanwhile, the remaining 82 active projects are currently 
seeking to achieve ‘Financial close’ status. To date, EUR 306 million has been awarded, with the 
following spread of disbursements between the 44 projects having received a payment. 

90

80

70

60

50

40

30

20

10

0

Activities before
FC

Activities
between FC and
EiO

Year 1
Operation

Year 2
Operation

Year 3
Operation

Terminations 

Figure 8: Project stage 

By the end of 2024 a total of 11 projects had been terminated, nine of them over the course of the 
year.  Meanwhile,  120  projects  are  ongoing (16)  (IF23  NZT  projects  had  not  yet  signed  grant 
agreements). 

The  reasons  for  terminations  included  unforeseen  significant  increases  in  project  costs  (five 
projects), withdrawal of a project partner (two projects), increases in feedstock prices (one project), 
inability to find a suitable offtaker (one project), breach of obligations under the grant agreement 
(one project) and inability to reach a final investment decision (one project). 

3.3.  Portfolio by sector 

The Fund’s portfolio (17) comprises five categories: 

carbon capture and geological storage (CCS) 
energy-intensive industries (EIIs) 
energy storage (ES) 

(i) 
(ii) 
(iii) 
(iv)  mobility (MOB) 

(16)  ‘Ongoing projects’ are those signed projects which have started but not yet been terminated. 

(17)  All portfolio analysis is based on projects which are active (have not been terminated) and have signed 
grant agreements as at 31 December 2024. Six of the seven IF23 hydrogen auction projects are therefore 
included, but no IF23 NZT call projects were in the portfolio at the time. 

12 

 
 
 
 
 
(v) 

renewable energy storage (RES). 

12 

27 

€0 M

€374 M

€889 M

€1.988 M

-

16 

65 

€3.883 M

Carbon capture and geological storage (CCS)

Carbon capture and geological storage (CCS)

Energy Intensive Industries (EII)

Energy Intensive Industries (EII)

Energy Storage (ES)

Mobility (MOB)

Energy Storage (ES)

Mobility (MOB)

Renewable Energy (RES)

Renewable Energy (RES)

Figure 9: Project breakdown by category (project count and funding awarded) 

The sectors most represented in the Fund’s portfolio are ‘Hydrogen’ (22 projects), ‘Cement and 
lime’ (13 projects), and ‘Manufacturing of components for renewable energy or energy storage’ 
(11 projects). The sector receiving the most funding (EUR 1.9 billion) is still ‘Cement and lime’, 
due to the significant investment required for cement and lime projects, which generally include 
CCS technology. The sector receiving the second largest amount of support (EUR 1.4 billion) was 
‘Hydrogen’, as hydrogen is a cross-sectoral investment supporting decarbonisation across a variety 
of sectors including aviation and maritime (through synthetic fuels), energy-intensive industries 
(replacement  of  fossil  fuels  in  various  processes  including  steel  manufacturing  and  heat 
production) and electricity generation (long-term energy storage). Investment is also high in the 
chemicals sector (EUR 790 million) and refineries (EUR 290 million), with a variety of projects 
aimed  at  replacing  fossil  fuels  with  principal  products  such  as  plastics,  biofuels,  methanol, 
ammonia and organic chemicals. 

13 

 
 
 
 
 
 
 25

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IF23 Auction

Figure 10: Number of projects by sector 

SSC 2020

LSC 2020

SSC 2021

LSC 2021

LSC 2022

SSC 2022

IF23 Auction

Figure 11: Funding awarded by sector 

14 

 
 
 
 
 
3.4.  Geographical balance 

As at the end of 2024, 24 of the 30 eligible countries in the EU and EEA had signed at least one IF 
project, with 14 countries having at least  three ongoing projects. The countries with the  largest 
number of projects are Spain (21), France (14), Italy (11), Germany (10) and the Netherlands (9). 
With the results of IF23, the number of countries with at least one project in the IF portfolio will 
increase to 26, with both Estonia and Slovakia having been awarded projects. 

The main reason why few projects received funding in the remaining countries is that not many 
proposals were received from those countries. Up to and including IF23, applicants had submitted 
seven admissible projects in Romania, two in Luxembourg and one in Malta. No applications were 
received from Liechtenstein. 

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Figure 12: Number of projects by first location country (18) 

funding  basis,  Spain 

(EUR 1.0 billion),  Germany 

On  a 
(EUR 867 million),  Sweden 
(EUR 782 million), Belgium (EUR 671 million) and Norway (EUR 572 million) have received the 
largest share of IF support. The difference between funding and project count is due to the fact that 
the average project size is larger in countries such as Belgium, Norway and Sweden, where there 
is a greater share of energy-intensive industry projects such as green steel and CCS projects, which 
tend to be larger, capital-intensive investments. 

(18)  Project locations are based on the primary project location. The beneficiary country is not considered. 

15 

 
 
 
 
 
 
 
 
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Figure 13: Funding awarded by country 

Of course, a variety of factors influence the geographical share of funding a country may receive. 
These may include the number of proposals a country submits, the size of its economy, the number 
of  eligible  industrial  activities,  the  support  provided  by  Member  States  to  entities  drawing  up 
proposals, the availability of cofinancing and so on. In the case of auction projects, the price of 
electricity is also a  significant consideration.  Projects are awarded funding from the  Innovation 
Fund  solely  on  the  basis  of  excellence.  Geographical  balance  is  considered  in  the  selection  of 
projects only to a limited extent (19). 

To illustrate the share of funding received by countries in relation to the size of their economy and 
the  presence  of  relevant  industries,  a  comparison  is  made  below  between  GDP  and  the  ETS 
emissions share. 

We  can  see  that  major  economies  such  as  Germany,  France  and  Italy  are  relatively 
underrepresented in relation to both their ETS share and GDP. In the case of Germany and France, 
this situation is set to improve with the results of the IF23 NZT call, with projects in Germany 
being  awarded  a  share  of  EUR 664 million  and  projects  in  France  receiving  a  share  of 
EUR 518 million. Countries which overperform in relation to both their ETS share and the size of 
their GDP include Belgium, Norway, Spain and Sweden. 

(19)  In the call for regular grants, when ordering projects with the same score, priority is given to proposals 

from countries with a smaller number of high-ranked proposals. 

16 

 
 
 
 
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Figure 14: Geographical spread by share of GDP (20) and share of IF funding 

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Figure 15: Geographical spread by ETS share (21) and share of IF funding 

The Innovation Fund has put in place  several mechanisms to  help all  Member States and EEA 
countries submit quality IF proposals. These include supporting national contact points (NCPs) in 

(20)  Gross domestic product at 2024 market prices (Eurostat 2025). 
(21)  https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32020D2166. 

17 

 
 
 
 
 
 
 
each  Member  State,  technical  assistance  for  countries  with  low  participation  levels  and  the 
provision of project development assistance (PDA) with specific geographical KPIs. 

3.5.  GHG avoidance 

The  120  projects  in  the  Fund’s  portfolio  at  the  end  of  2024  are  expected  to  avoid  a  total  of 
489 million tCO2-eq during their first decade of operation,  corresponding to, on average, 
EUR 69 of funding per kg of CO2-eq avoided. 

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Figure 16: Expected greenhouse gas avoidance by call 

4.  COMMUNICATING AND RAISING VISIBILITY 

4.1.  NCP network 

The  Fund  actively  supports  national  authorities  and  offers  feedback  through  participation  in 
national  info  days  and  local  outreach  activities.  Within  the  ‘Technical  assistance  for  Member 
States’  workstream,  training  sessions  have  been  delivered  for  all  Fund  NCPs.  Additionally, 
communication  materials  have  been  provided  in  local  languages  to  assist  NCPs  in  their  local 
outreach  and  communication  efforts.  In  2024  five  training  sessions  covered  topics  such  as 
communication strategies, the mechanism of the renewable hydrogen auction and how the Fund’s 
grants can be combined with other public funding sources at both EU and national level. Regular 
progress  calls  have  been  held  to  keep  NCPs  updated  on  the  latest  political  developments.  This 
workstream will continue into 2025 with a new contract, aiming to enhance NCPs’ role in locally 
promoting the Fund and effectively addressing applicants’ requests. 

18 

 
 
 
 
 
 
 
 
 
 
 
4.2.  Innovation Fund expert group and stakeholder engagement 

The  Commission  organised  two  meetings  of  the  Fund  expert  group  in  2024:  on  27 June  and 
14 November 2024 (22). The results of the IF23 auction and the IF23 call were presented at the 
meetings, along with the outcomes of the stakeholder consultation on the upcoming IF 2024 call 
for  proposals.  The  terms  and  conditions  and  Auctions-as-a-Service  for  the  2024  renewable 
hydrogen auction (IF24 auction) were also discussed. Highlights of the upcoming 2024 calls for 
net-zero  technologies  (IF24  call)  and  electric  vehicle  battery  cell  manufacturing  (IF24  battery) 
were also shared. The purpose of the meetings was to present the latest developments in the Fund 
and to gather input from eligible countries and industry representatives on future directions to be 
taken by the Fund. 

4.3.  Knowledge sharing 

Knowledge-sharing activities aim to share experience and policy feedback gained by implementing 
first-of-a-kind technologies with project developers, investors, public authorities and the public. In 
2024  three  dedicated  closed-door  knowledge-sharing  events  were  held,  focusing  on  different 
technology pathways. The first, on 21 March 2024, focused on the renewable energy value chain 
with policy feedback provided for local, regional, national and EU authorities. A second workshop, 
in October 2024, on the theme of CCS brought together CO2 capture projects supported by the 
Innovation Fund, prospective CO2 storage operators and Member State and European Commission 
representatives. Lastly, a hydrogen project workshop focused on the key takeaways for projects, 
from  permitting  to  construction.  A  summary of  knowledge-sharing  activities  is  provided in  the 
‘Annual knowledge sharing report of the Innovation Fund’. 

On  11 April  2024  the  Commission  and  CINEA  organised  the  fourth  Cleantech  Conference. 
Participants explored pathways to bolster European manufacturing of clean tech devices and their 
components  for  renewable  energy  and  energy  storage.  Commission  Executive  Vice-President 
Maroš  Šefčovič  opened  the  conference  by  emphasising  the  significance  of  clean  tech 
manufacturing for Europe. Several projects showcased concrete pathways and solutions aimed at 
supporting Europe’s transition to climate neutrality. The conference concluded with a debate on 
unlocking  investments  in  clean  tech  manufacturing.  The  event  attracted  a  diverse  audience, 
including policymakers, investors, industry leaders and other stakeholders, who raised awareness 
of the numerous business opportunities the Fund offers public and private financiers. A total of 
400 participants attended in person, alongside some 900 online participants connected to the live 
stream, demonstrating the event’s extensive outreach. 

4.4.  Success stories 

In  2024  DG  CLIMA  and  CINEA  produced  seven  project  stories  that  serve  as  essential 
communication tools explaining complex technologies in a way that people living in the EU can 
easily understand. The stories play a crucial role in raising awareness  of the EU’s initiatives to 
tackle climate change, highlighting the tangible impacts of the EU ETS and the Fund and informing 
local communities about regional projects so as to foster ownership and pride. Moreover, project 
stories  increase  visibility,  providing  opportunities  for  projects  to  attract  potential  investors  and 
stakeholders while garnering local public support. They are published on DG CLIMA’s website 
and shared on our social media platforms, enabling us to reach a broader audience. 

(22)  The  minutes  of  the  meetings  are  available  here:  https://climate.ec.europa.eu/eu-action/eu-funding-

climate-action/innovation-fund/innovation-fund-expert-group_en. 

19 

 
 
 
5.  CONCLUSION 

In 2024 the Innovation Fund further consolidated its role as a central instrument in supporting the 
EU’s transition to climate neutrality. By committing EUR 11.2 billion (23) by the end of 2024 to 
the deployment of first-of-a-kind technologies, getting them to market and scaling up more mature 
technologies, strengthening links with other EU programmes and financial institutions and widely 
sharing  the  knowledge  gained  in  the  process,  the  IF  has  contributed  significantly  to  the  cost-
efficient decarbonisation of European industries while increasing industrial competitiveness and 
energy security. The fact that calls and auctions  are still oversubscribed highlights the need for 
public support and demonstrates the relevance of the Fund to Europe’s challenge of becoming the 
first climate-neutral continent by 2050. 

The IF also remains highly relevant for furthering the objectives of the Clean Industrial Deal and 
implementing the EU’s  plan for sustainable prosperity and competitiveness. Although there are 
clear opportunities to develop much-needed decarbonisation solutions, there are still challenges to 
be  faced.  To  help  make  innovative  projects  more  successful  and  encourage  the  submission  of 
proposals in all Member States, the IF is strengthening its tools for upfront support at the project 
development  stage.  In  particular,  project  development  assistance  and  the  support  for  national 
contact points have potential to further improve the geographical and sectoral balance. The ‘as-a-
service’ features of the Innovation Fund, on the other hand, can increase the impact of the Fund 
while reducing the administrative burden on both applicants and national administrations. 

The  dynamic  IF  portfolio  already  contains  199  active  projects  selected  in  26  countries  and  is 
growing ever faster. In October 2024 it was announced that a further 85 projects in 18 countries 
had been selected from the IF23 net-zero call alone. With the launch, at the end of 2024, of net-
zero technology, battery manufacturing and renewable hydrogen calls worth EUR 4.6 billion, the 
Fund will continue to consolidate its role in accelerating industrial decarbonisation and scaling up 
strategic clean technologies throughout the EU. 

(23)  Includes ongoing projects already signed and projects selected from IF23 but not yet signed. 

20