The European Commission announced on Tuesday a €4.6 billion funding initiative to advance net-zero technologies, electric vehicle battery production and renewable hydrogen.
The funding, sourced from the EU Emissions Trading System through the Innovation Fund, is a cornerstone of the Commission’s strategy to accelerate the continent’s green transition.
The initiative includes two calls for proposals totaling €3.4 billion, complemented by a €1.2 billion allocation for the second auction of the European Hydrogen Bank.
These programs aim to solidify Europe’s position as a leader in innovative clean technologies while addressing strategic vulnerabilities in critical supply chains.
A Push for Climate-Neutral Innovation
At the heart of the funding drive is the €2.4 billion net-zero technologies call, targeting decarbonization projects and manufacturing breakthroughs in renewable energy components, energy storage, and hydrogen production.
According to a statement, EU member states can amplify the program’s impact through complementary national funding, leveraging a streamlined approval process under the “Grants-as-a-Service” framework.
A separate €1 billion call focuses exclusively on electric vehicle battery production, aiming to bolster innovation in cell manufacturing and advanced production techniques.
The move addresses the challenges Europe’s battery supply chain faces and positions the EU to compete in a sector critical to the clean energy transition.
“This investment underscores our commitment to a climate-neutral Europe while strengthening the resilience of our industries,” said Teresa Ribera, executive vice president for clean, just and competitive transition, in the statement.
Renewable Hydrogen: The Next Frontier
The €1.2 billion auctions under the European Hydrogen Bank will support renewable hydrogen production across the European Economic Area.
A €200 million tranche is earmarked for projects linked to the maritime sector, reflecting the Commission’s ambition to foster hydrogen adoption across diverse industries.
The statement further said that the innovative “auctions-as-a-service” mechanism allows member states to back promising projects not selected for EU funding, reducing administrative burdens and accelerating deployment.
Spain, Lithuania, and Austria have already pledged €836 million under this scheme, a testament to growing national interest in hydrogen technologies.
“By putting ETS revenues to work, we are delivering on our promises to European citizens and businesses,” said Wopke Hoekstra, Commissioner for Climate, Net Zero, and Clean Growth.
Mobilizing Private Investment
The Commission partnered with the European Investment Bank to recognize the economic barriers to scaling green technologies.
A €200 million top-up to the InvestEU program will unlock additional financing for battery-related projects, aiming to bridge investment gaps in the sector.
Next Steps and Broader Impact
Project submissions for the net-zero technologies and battery calls are due by April 24, 2025, with grant agreements expected in early 2026. The hydrogen auction will close applications on February 20, 2025.
The Innovation Fund has already allocated about €7.2 billion to more than 120 innovative projects through its previous calls for proposals. The results of the IF23 Call boosted the total amount of support to €12 billion for over 200 projects.
“With this robust start to our mandate, we are setting the pace for a sustainable and competitive Europe,” said Ribera.
Application Deadlines
- Net-Zero and Battery Calls: April 24, 2025
- Hydrogen Auction: February 20, 2025
The Commission’s latest effort aims to turn Europe’s climate commitments into industrial opportunities, showcasing a green agenda that balances environmental stewardship with economic resilience.
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