EU's €40B Innovation Fund opens 2025 grant calls for clean tech

The European Commission's Innovation Fund, the EU's largest grant program for low-carbon technologies, is now accepting applications for its 2025 funding rounds. With a total budget of €40 billion allocated between 2020 and 2030, the fund aims to accelerate the transition to a climate-neutral Europe by 2050. Key calls open in late 2025 include the general Net Zero Technologies call (until April 2026), a dedicated Batteries call, the €1 billion Pilot Heat Auction for electrifying industrial heat (open until February 2026), and a renewable hydrogen auction (also open until February 2026). The hydrogen auction specifically offers a fixed premium per kilogram of hydrogen produced, with €1.2 billion available in 2024, including €200 million for maritime applications.

The Innovation Fund supports innovative projects across energy-intensive industries, renewable energy, energy storage, CCUS, and net-zero mobility and buildings. Projects are evaluated on greenhouse gas reduction potential, innovativeness, maturity, replicability, and cost-effectiveness. Importantly, the fund requires that projects deliver at least 75% of their calculated emissions avoidance to receive the full grant amount, with baselines typically derived from EU ETS benchmarks. The program also offers technical support through specialized consultancies like Hezelburcht, but the core opportunity remains a substantial financial lever for European companies and collaborations to scale breakthrough decarbonization technologies.