2025 annual knowledge sharing report of the Innovation Fund : de-risking innovative low-carbon technologies

The Innovation Fund (the Fund), funded with revenues from the European Union Emissions Trading System, is one of the world's largest funding programmes supporting the deployment of innovative net-zero and low-carbon technologies. Knowledge sharing is an essential part of the programme. This report presents knowledge and insights from funded projects to empower other players to overcome the challenges of scaling up low-carbon technologies. At the end of 2024, the Fund's project portfolio comprised 120 ongoing projects in energy-intensive industries, hydrogen, industrial carbon management, renewable energy and energy storage. The committed contribution amounted to EUR 7.1 billion. Moreover, 36 projects reached financial close by the end of 2024, and seven successfully entered into operation. Given their complexity in size, technical ambition, reliance on external market conditions and regulatory developments, projects have encountered multiple challenges. This report highlights strategies they employed to overcome these challenges and mitigate associated risks, such as supply chain disruptions and securing contracts with off-takers.