European Commission and EIB strengthen support for Innovation Fund decarbonisation initiatives

The European Commission and the European Investment Bank (EIB) have signed an agreement renewing Project Development Assistance (PDA) under the Innovation Fund to increase technical and financial advisory support for innovative decarbonisation projects that are either not selected via the Fund or are preparing to apply. The renewed PDA agreement aligns with the EU’s Clean Industrial Deal, which aims to increase the deployment of net-zero technologies and boost the competitiveness of industries across the EU.

Under the renewed agreement, EIB Advisory will provide PDA to up to 250 projects between 2025 to 2028, offering broader sectoral coverage and a smooth application process. This builds on the initial Innovation Fund PDA programme, which supported 62 innovative projects – 16 of which have already secured Innovation Fund grants, seven more have received funding from national sources or other programmes; and one has been designated an EU project of common interest.

With the expanded scope for broader coverage, the Commission has increased the budget available for EIB Advisory and its new PDA phase from €24 million to €90 million. This will further accelerate the deployment of cutting-edge decarbonisation technologies across Europe:

• New sectors such as net-zero and low-carbon mobility including maritime, rail and road transport, and buildings have been added to the mandate following the changes to the Emission Trading System (EU ETS) which included these sectors in the Innovation Fund project scope.
• New Key Performance Indicators (KPIs) have been added to help achieve geographical and sectoral balance and to promote small–scale projects as well as support immature projects.

The PDA contributes directly to the EIB’s strategic goals in climate action and innovation, reinforcing the shared commitment to support the development of high-impact projects that will help the EU meet its climate neutrality target and foster the growth of a sustainable and clean industrial base.

EIB Advisory services will be more easily accessible as projects can receive PDA through direct requests (‘open PDA’), in addition to the standard support mechanisms linked to Innovation Fund calls. This flexibility enhances the accessibility of the programme and allows for faster and more tailored support to promising innovative clean tech and industrial decarbonisation projects.

Under the open PDA, promoters will be able to contact the EIB advisory services directly to receive advice. EIB Advisory will carry out an assessment to identify the eligible projects’ needs and the potential of the PDA to address these, substantially increase the maturity of the project and with it the chances of success in relevant Innovation Fund calls. PDA will be awarded on a ‘first-come-first-served’ basis following this assessment.

Wopke Hoekstra, Commissioner for Climate Action, said:
“Through the Project Development Assistance provided by the Innovation Fund, the EIB is offering enhanced technical and financial support for promising decarbonisation projects. We are laying the groundwork for the innovative and competitive industrial base of the future. This underscores the EU’s long-term commitment to industrial decarbonisation and innovation. We are confident that, with this renewed agreement, the EIB will continue to deliver successful, tailor-made support to Innovation Fund projects.”

Christoph Kuhn, EIB Deputy Director General Projects Department said:
“With the renewed PDA agreement, EIB Advisory is not only building on past success. It’s setting a new standard for how Europe can support its most innovative and transformative clean technologies.”

 

Background

EIB 

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. We finance investments in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. All projects financed by the EIB Group are aligned with the Paris Climate Agreement, as set out in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects that contribute directly to climate change mitigation, adaptation, and a healthier environment.

Innovation Fund

Using revenues from the auctioning of emission allowances from the EU Emissions Trading System, the Innovation Fund seeks to drive investment in cutting-edge, low-carbon and net-zero technologies and processes, supporting Europe’s transition to climate neutrality.

With a total budget of around €12 billion already committed since 2021, the Innovation Fund to date supports around 200 innovative projects across the European Economic Area (EEA).

More information: European Commission.