The European Commission has launched three new funding opportunities under the Innovation Fund, mobilising a total of €5.2 billion from EU Emissions Trading System (EU ETS) revenues. The fresh calls include the 2025 Net-Zero Technologies Call (€2.9 billion), the third European Hydrogen Bank auction (€1.3 billion), and the first-ever auction for decarbonising industrial process heat (€1 billion) under the new Industrial Decarbonisation Bank framework.
The Commission says the new funding round marks a significant milestone in advancing the EU’s 2030 climate targets and its commitment to delivering climate neutrality by 2050. The investment is expected to strengthen clean technology leadership, support industrial transformation, and bolster Europe’s competitiveness in the global low-carbon economy.
€2.9 Billion for Net-Zero Technology Manufacturing and Deployment
The IF25 Net-Zero Technologies call is aimed at accelerating clean-tech deployment by filling investment gaps and attracting private capital. The programme supports projects deploying mature yet highly innovative solutions capable of delivering deep greenhouse gas (GHG) emissions cuts.
Eligible proposals include manufacturing capacity for key clean-energy components such as renewable energy systems, heat pumps, hydrogen production technologies, energy storage equipment, and electric vehicle batteries.
Project evaluation criteria include emissions-reduction potential, innovation level, maturity, replicability, and cost-effectiveness. A revised scoring mechanism introduces a dedicated bonus for projects led and executed entirely by SMEs—an acknowledgment of the role small-scale innovation plays in the broader transition.
€1.3 Billion Hydrogen Auction to Advance Clean Hydrogen Production
Clean hydrogen remains central to reducing emissions from hard-to-abate industrial and transport sectors. The latest European Hydrogen Bank auction will allocate €1.3 billion to scale renewable and low-carbon hydrogen production.For the first time, the auction introduces a dedicated category for hydrogen suppliers serving maritime or aviation sectors. Selected projects will receive a fixed premium for up to 10 years, based on verified and certified hydrogen production volumes.
€1 Billion Heat Decarbonisation Auction Targets Industry Emissions
The Commission also launched the EU’s first auction aimed at reducing emissions from industrial process heat—a sector responsible for roughly 75% of industrial GHG emissions.
The IF25 Heat Auction will offer up to €1 billion in output-based premiums to support electrified and direct-renewable heat solutions. Eligible technologies include electric boilers, heat pumps, induction and resistance heating, geothermal systems, solar thermal installations, and hybrid configurations. Payments will be made for verified decarbonised heat output for a maximum of five years.
Member States Extend Support Through “Auctions-as-a-Service”
Germany and Spain have opted to bolster the programme through the Commission’s Auctions-as-a-Service mechanism. This allows Member States to fund high-quality projects that meet Innovation Fund criteria but fall outside the available EU budget.
Under the scheme:
- Germany will contribute an additional €1.3 billion for national RFNBO hydrogen projects.
- Spain will allocate €465 million, of which €415 million targets hydrogen and €50 million supports industrial heat decarbonisation.
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