Innovation Fund in Transport Sector
How the Innovation Fund Supports the Decarbonisation of the EU Transport Sector
In a recent publication, the European Commission presented a factsheet on projects supported by the Innovation Fund, with total funding exceeding €4.8 billion.
✅ What is the Innovation Fund?
The Innovation Fund:
- is one of the EU’s key financial instruments for deploying net-zero and innovative technologies.
- is funded by revenues from the EU Emissions Trading System (EU ETS) and supports the decarbonisation of hard-to-abate sectors.
- provides grants to breakthrough projects across a wide range of sectors in the European Economic Area (EEA).
☑️ What technologies in the transport sector does the Innovation Fund support?
- the production and use of sustainable fuels
- the electrification of transport systems
- the manufacturing and recycling of batteries for electric vehicles (EVs)
- the construction and retrofitting of low- and zero-carbon ships, aircraft, and heavy-duty vehicles
✅ Key Takeaways:
📌 Out of 272 ongoing and awarded projects, more than one-third focus on transport decarbonisation, receiving around one-third of total grants (€4.8 billion).
📌 Transport-related projects are expected to deliver approximately 29% of the Innovation Fund’s total emission reductions during their first ten years of operation, cutting 334 million tonnes of CO2.
📌 The largest share of mobility projects in the Innovation Fund portfolio relates to fuel production (47 projects). More than 45% of these projects are expected to supply their output exclusively to the transport sector, while the remainder plan to serve multiple off-takers, with transport among the key beneficiaries.
➡️ Source: Driving decarbonisation in mobility through the innovation fund