In the first week of its mandate, the new European Commission is stepping up its efforts to boost net-zero technologies that are key to ensure the competitiveness of European industry whilst meeting European climate goals. It is launching two new calls for proposals with a budget of €3.4 billion to accelerate the deployment of innovative decarbonisation technologies in Europe, including electric vehicles batteries. It is also launching the second auction of the European Hydrogen Bank, designed to boost renewable hydrogen production within the European Economic Area (EEA). This initiative is supported by €1.2 billion from EU funds and over €700 million contributed by three Member States. Both calls for proposals and the auction are financed by the Innovation Fund, using revenues from the EU Emissions Trading System (ETS).

Calls for proposals in more detail

The two calls reflect the EU’s commitment to strengthening Europe’s leadership and manufacturing capacity in innovative net-zero technologies while advancing towards climate neutrality by 2050.

The general call for net-zero technologies (IF24 Call, €2.4 billion) will support decarbonisation projects of various scales and initiatives focused on manufacturing components for renewable energy, energy storage, heat pumps, and hydrogen production. Projects under this call will be evaluated based on their potential to reduce greenhouse gas emissions, level of innovation, maturity, replicability, and cost efficiency. Member States will have the option to complement the IF24 call with national funding schemes through the new ‘Grants-as-a-Service’ mechanism. This approach leverages the Innovation Fund's evaluation process and streamlined State aid approval procedures, enabling enhanced collaboration between EU and national funding efforts.

In addition, a call for electric vehicle battery cell manufacturing (IF24 Battery, €1 billion) will support projects aimed at producing cutting-edge battery cells or deploying innovative manufacturing techniques and technologies. It is one measure under a broader approach to mobilise investment in an area that is essential for Europe's success in the clean energy transition and its competitiveness, and supports companies in targeting investments in Europe with new technologies where advances are still being made. 

In line with this, the Commission, in partnership with the European Investment Bank (EIB), has announced a new initiative to bolster investment in the EU’s battery manufacturing sector. This partnership will see a €200 million top-up (loan guarantee) to the InvestEU programme from the Innovation Fund, to support innovative projects along the European battery manufacturing value chain.

Auction in more detail 

The Commission is also launching the second auction under the European Hydrogen Bank, financed through the Innovation Fund (IF24 Auction). This initiative will allocate €1.2 billion from EU Emissions Trading System (ETS) revenues to support the production of Renewable Fuels of Non-Biological Origin (RFNBO) within the European Economic Area (EEA).

With a budget increased by €400 million compared to the first IF23 Auction, the new IF24 auction will support projects for renewable hydrogen production regardless of the sector in which it will be consumed, with a dedicated budget of €1 billion; as well as hydrogen production in projects with off-takers in the maritime sector, with a dedicated budget of €200 million. 

To expand funding opportunities, the Commission is introducing an ‘Auctions-as-a-Service’ mechanism, enabling Member States to finance projects that bid in the EU auction but were not selected due to budgetary constraints. This approach allows Member States to support projects on their territory using national funds without the need for a separate national auction, significantly reducing administrative burden and costs.

Deadlines

Project promoters for the net-zero technologies and battery calls have until 24 April 2025, 17:00 (CET), to apply to both Innovation Fund calls via the EU Funding and Tenders Portal. Successful applicants are expected to sign grant agreements by the first quarter of 2026. As regards the renewable hydrogen auction, bidders have until 20 February 2025 to apply via the EU Funding and Tenders Portal. Successful bidders will sign agreements approximately nine months after the call closure.

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