In a decisive move to secure Europe’s industrial competitiveness and meet its climate goals, the European Commission has unveiled an ambitious plan to boost net-zero technologies, with a total funding of €4.6 billion under the Innovation Fund. The announcement marks a significant step in accelerating the deployment of cutting-edge decarbonisation initiatives, including electric vehicle battery production and renewable hydrogen.

The funding is distributed across two major calls for proposals totalling €3.4 billion, and a €1.2 billion second auction under the European Hydrogen Bank. The initiatives are powered by revenues from the EU Emissions Trading System (ETS).

Net-Zero technologies: building the future

A €2.4 billion call for net-zero technologies (IF24 Call) targets projects that promote decarbonisation, renewable energy components, energy storage, heat pumps, and hydrogen production. Projects will be evaluated on greenhouse gas reduction potential, innovation, cost efficiency, and scalability.

For the first time, Member States can complement the IF24 Call with national funding through a “Grants-as-a-Service” mechanism, simplifying funding approval and evaluation processes.

A separate €1 billion call focuses on innovative manufacturing for electric vehicle battery cells, providing critical support for Europe’s clean energy transition and industrial competitiveness. The initiative includes a partnership with the European Investment Bank (EIB), with an additional €200 million allocated to address financing challenges in battery manufacturing.

Renewable hydrogen production takes center stage

The €1.2 billion IF24 Auction, managed by the European Hydrogen Bank, aims to bolster renewable hydrogen production across the European Economic Area. With €400 million more than the previous auction, it supports hydrogen projects in diverse sectors, including maritime transport.

Through the “Auctions-as-a-Service” mechanism, Member States such as Spain, Lithuania, and Austria have pledged €836 million in national funds, enabling additional support for hydrogen projects not selected in the main EU auction.

Resilience at the core

To strengthen Europe's strategic autonomy, new resilience criteria have been incorporated into the calls. These aim to reduce dependency on single suppliers, particularly in the battery and hydrogen sectors.

Next steps

The deadlines for submissions are April 24, 2025, for the net-zero and battery calls, and February 20, 2025, for the hydrogen auction. Successful applicants will sign grant agreements by early 2026.

Driving climate neutrality by 2050

The Innovation Fund, fuelled by €40 billion in ETS revenues (2020–2030), has already supported over 200 projects with €12 billion. These efforts underscore the EU’s leadership in pioneering low-carbon technologies while fostering economic growth and climate action.