The European Commission (EC) has announced plans to invest €4.6 billion in decarbonisation technologies and clean hydrogen initiatives, leveraging funds from the EU Emissions Trading System (EU ETS). The announcement highlights the EU’s commitment to accelerating its transition to climate neutrality under the European Green Deal Industrial Plan.
The funding includes two new calls for proposals worth €3.2 billion. Of this, €1 billion is earmarked for advancing electric vehicle battery cell manufacturing, while €1.2 billion will be allocated to the European Hydrogen Bank to boost renewable hydrogen production. These initiatives aim to strengthen Europe’s net-zero industries and foster the adoption of advanced green technologies.
The investments will be financed by the EU’s Innovation Fund, a program supported by revenues generated through the EU ETS. Since its establishment in 2005, the ETS has been a cornerstone of EU climate policy, pricing carbon emissions in sectors such as electricity generation, oil refineries, steel, cement, and aviation. Following recent legislative updates in 2023, the ETS now includes additional sectors and aims to raise approximately €40 billion in revenues by 2030.
The EC also revealed that 85 decarbonisation projects have been selected to receive €4.8 billion from the Innovation Fund in 2024, emphasizing its role as one of the world’s largest funding programs for net-zero technologies.
By prioritizing investments in clean energy and advanced technologies, the EU continues to drive its ambitions of climate neutrality and industrial competitiveness in the global green economy.
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