What is the Innovation Fund
Established by the directive 2003/87/EC1 (EU ETS Directive), the Innovation Fund is a cash grant program for innovative pilot and demonstration projects focused on sustainability. This first round of funding is focused on large-scale projects (i.e., EUR 7.5 million or more in project costs). The budget is estimated around EUR 10 billion (bn), depending on the carbon price for the period 2020 to 2030.The budget for this first call is estimated at EUR 1 bn.
How Much of My Project Can Be Funded
The Innovation Fund will fund up to 60% of a project’s costs and can be combined with other incentives funding sources.
What Types of Projects Qualify
Projects must happen in an EU member state, Iceland or Norway.
The following project types will be considered for funding:
- Low-carbon technologies in energy-intensive industries
- Renewable energy
- Energy storage
- Carbon capture and storage (CCS)
- Industrial carbon capture and use (CCU)
Projects will be evaluated on the following criteria:
- Effectiveness in terms of greenhouse gases (GHG) emission avoidance potential
- Degree of innovation of the projects compared to the state of the art
- Project maturity (in terms of planning, business model, financial and legal structure)
- Scalability, which is the technical and market potential for widespread application or replication, or for future cost reductions
- Cost efficiency
The evaluations will be conducted in a two-stage process, with the successful applicants evaluated on the first three criteria, and the successful applicants invited to the second stage and evaluated on the last two criteria.
What Are the Deadlines
- July 3, 2020 – Call opened
- October 29, 2020 – First stage applications due
- By Q1 2021 – Invitations to second stage
- June 23, 2021 – Second stage applications due
- By H2 2021 – Approved applicants notified
- By end of 2021 – Grants awarded
How We Can Help
Duff & Phelps' Site Selection and Incentives Advisory professionals, in conjunction with the European Funding Alliance, can help your team identify qualifying projects, prepare the grant application and presentation materials, and support your compliance efforts after the grant is awarded.