EU's €5.2 Billion Innovation Fund for Industrial Decarbonization
The European Commission has launched a comprehensive €5.2 billion Innovation Fund package to accelerate Europe's transition to clean industrial technologies, funded through EU Emissions Trading System revenues. The initiative encompasses three major funding calls targeting net-zero technologies, hydrogen production, and industrial process heat decarbonization. Applicants can begin submitting applications immediately, with staggered deadlines between February and April 2026.
Three Major Funding Allocations
- €2.9 billion for 2025 Net-Zero Technologies call (applications until 23 April 2026)
- €1.3 billion for third auction of hydrogen production under European Hydrogen Bank (applications until 19 February 2026)
- €1 billion for first-ever industrial process heat decarbonization auction (applications until 19 February 2026)
- Info Day for Net-Zero Technologies scheduled for 16 December 2025
- Info Days for Hydrogen and Heat auctions scheduled for 10 December 2025
Expected Outcomes and Implementation Timeline
Successful applicants for the Net-Zero Technologies call are expected to sign grant agreements by Q1 2027, while bidders for hydrogen and heat auctions should complete agreements within nine months of call closure. This funding framework supports a wide range of innovative technologies in energy-intensive industries, renewables, energy storage, and net-zero solutions, positioning Europe as a leader in industrial decarbonization technology development and deployment.