The European Commission has announced three major funding opportunities under the Innovation Fund, backed by €5.2 billion from EU Emissions Trading System (EU ETS) revenues, to drive Europe’s path toward climate neutrality by 2050 and deliver the Clean Industrial Deal.
Three calls to transform industry:
- 2025 Net-Zero Technologies Call (IF25 NZT) – €2.9 billion
Supports highly innovative projects that reduce greenhouse gas emissions and advance clean technology manufacturing, including renewable energy components, energy storage, heat pumps, hydrogen production, and EV batteries. Applications open until 23 April 2026. - European Hydrogen Bank Auction (IF25 Hydrogen Auction) – €1.3 billion
Provides cost-efficient support for renewable and low-carbon hydrogen production, including a new topic for maritime and aviation off-takers. Bidders have until 19 February 2026 to apply. - Industrial Process Heat Auction (IF25 Heat Auction) – €1 billion
First-ever EU-wide auction to decarbonize industrial heat, responsible for three-quarters of industrial emissions. Supports technologies such as heat pumps, electric boilers, solar thermal, and geothermal solutions. Deadline: 19 February 2026.
Boosting Competitiveness and Sustainability
These calls aim to bridge investment gaps and attract private capital; support innovative projects that cut emissions cost-effectively and strengthen Europe’s leadership in clean technologies.
Member States can also leverage the Auctions-as-a-Service scheme to fund high-quality projects that meet evaluation criteria but exceed EU budget limits. Germany and Spain have already committed additional national funds totaling nearly €1.8 billion.
Next Steps: Apply via the EU Funding & Tenders Portal:
- IF25 NZT Call: by 23 April 2026
- Hydrogen & Heat Auctions: by 19 February 2026
Background
The Innovation Fund is one of the world’s largest programs for low-carbon technology deployment, with an estimated €40 billion budget between 2020 and 2030. To date, it has awarded over €15.8 billion to 275 projects, accelerating Europe’s clean transition.