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Competitive bidding under the Innovation Fund and implementation of other changes stemming from the ETS Directive Rev.

Climate action

The initiative will implement changes to the Innovation Fund to be agreed in the ETS Revision , notably use of competitive bidding. Whilst the IF currently functions with a grants awarded via scoring procedure, competitive bidding can be complementary considering: - Increased budget, (as proposed in ETS Directive revision) - Increased need for efficiency and market-based funding instruments - Increasing maturity of projects needing support - Reduced administrative burden

Links

Public consultation

ID: 13447

Lobbying Activity

25 responses

TotalEnergies Seeks Wider Innovation Fund Eligibility and Flexible Aid Stacking

TotalEnergies SE, 7 Aug 2023

TotalEnergies requests broader eligibility including energy infrastructure and less mature technologies like floating solar. They want medium-scale projects redefined with higher thresholds and the ability to combine Innovation Fund support with other EU and national funding programs.
This would make more of their renewable portfolio eligible and enable project financing.
Competitors without existing aid packages lose advantage in competitive bidding process.

ENGIE backs EU carbon auctions but seeks funding flexibility

ENGIE, 4 Aug 2023

ENGIE supports the new auction mechanism but wants bid price to represent most of the ranking criteria. They urge the Commission to allow projects to combine different funding sources. For hydrogen, they suggest a fixed premium scheme without competitive bidding to accelerate deployment.
Allowing multiple funding sources helps ENGIE bridge financial gaps and advance mature decarbonization projects.

Iberdrola Calls for Advance Grants and Competitive Bidding

IBERDROLA, 31 Jul 2023

They request 70% price-weighted criteria and support for operational costs. They also want 50% of grants paid upfront to improve projects.
Upfront payments would streamline project approvals and lower developer risks.
Firms seeking to stack different subsidies would be blocked by cumulation bans.

European Aluminium calls for sector-specific decarbonisation funding

European Aluminium AISBL, 7 Aug 2023

They want sector-specific calls for CBAM industries and funding for all technology maturity stages. They also request higher upfront grant disbursements to match international competitors.
Flexible funding rules would reduce investment risks and help maintain global competitiveness against non-EU subsidies.
Other industrial sectors might receive less funding if grants are ring-fenced specifically for CBAM-covered industries.

EIT InnoEnergy backs Innovation Fund expansion but urges SME protections

KIC InnoEnergy SE, 5 Aug 2023

EIT InnoEnergy requests that qualification requirements avoid deterring start-ups and calls for clarity on cost-efficiency calculations. They advocate for broader synergies with diverse EU funding programs.
New project categories provide their cleantech portfolio companies better access to large-scale funding.
Start-ups with limited resources lose if non-CO2 impact assessments become overly complex.

RWE supports competitive bidding but urges regional funding allocations

RWE AG, 7 Aug 2023

RWE suggests allocating regional funding portions to ensure geographical balance across the EU. Funding rounds should target specific renewable products that have similar investment requirements. Rules for combining government subsidies with EU support must be clearly defined.
Higher investment thresholds and new project categories will reduce market competition distortions.
Non-renewable low-carbon projects lose out if funding is prioritized specifically for renewable technologies.

Cement industry warns new Innovation Fund criteria increase project risks

CEMBUREAU - The European Cement Association, 7 Aug 2023

The association opposes the proposed efficiency criterion that divides grant amount by emissions avoided over 10 years. They argue this competitive bidding approach forces companies to reduce requested grants, increasing financial risks. For carbon capture, the most cost-effective solution is not always the best technical solution.
This would allow them to secure larger grants with less financial risk.
Taxpayers lose as projects may choose cheaper but less effective carbon capture technologies.

European Shipowners demand dedicated EU funding for maritime decarbonisation

European Community Shipowners' Associations, 7 Aug 2023

ECSA calls for shipping-specific calls to be launched early using earmarked allowances. The group wants the fund to finance low-carbon fuels to bridge price gaps. They request project rankings account for the high cost of reducing shipping emissions.
Dedicated funding ensures shipping projects win grants despite having high abatement costs.
Non-maritime sectors lose access to the allowances reserved for exclusive shipping calls.

Fertilizers Europe Demands Dedicated Ammonia Funding in Innovation Fund

Fertilizers Europe, 7 Aug 2023

The organization requests dedicated calls and budget for low and green ammonia production, specific auctions for CBAM sectors, and streamlined application procedures. They support competitive bidding but want sector-specific auctions to create fair competition.
This would give fertilizer manufacturers preferential access to decarbonization funding and reduce competition from other industries.
Smaller companies and other sectors lose funding opportunities through minimum project size requirements and sector-specific auctions.

Yara Urges Sector-Specific Innovation Fund Calls for Ammonia

YARA BELGIUM S.A., 7 Aug 2023

Yara wants dedicated Innovation Fund calls specifically for low-carbon and green ammonia production. They emphasize prioritizing large-scale projects with higher decarbonization potential and financial risk. The company also requests simplified application procedures and cumulation of EU and national funding support.
This would unlock public funding for their large-scale ammonia decarbonization projects.
Smaller innovative projects lose funding priority to established large-scale technologies.

European ports demand maritime focus in new Innovation Fund

European Sea Ports Organisation, 4 Aug 2023

ESPO wants the fund to prioritize projects that decarbonize the maritime sector, particularly on-shore power supply. They also request that maritime experts be involved in setting specific award criteria for funding calls.
Ports would receive subsidies for both construction and long-term operating costs.
Highly innovative startups may lose funding to established technologies that are being scaled.

Cleantech for Europe demands Innovation Fund access for SMEs

Cleantech for Europe, 28 Jul 2023

They request simpler application processes and more flexible maturity criteria for smaller companies. The group also proposes a dialogue stage to better explain breakthrough innovations to evaluators.
Younger companies would finally access large grants currently dominated by major industrial players.
Large industrial corporations would lose their current dominance over Innovation Fund project awards.

CDP Proposes New Blending Facility for EU Innovation Fund

Cassa Depositi e Prestiti s.p.a., 4 Aug 2023

The organization requests an ad hoc blending facility to combine grants with repayable financing. They urge the Commission to evaluate this facility in the 2025 fund review.
CDP would gain a formal role managing project pipelines and overseeing investment implementation.

Orano urges nuclear eligibility for EU Innovation Fund support

Orano, 28 Jul 2023

Orano requests that nuclear projects be eligible for the Innovation Fund. They advocate for technological neutrality within EU funding programmes.
This inclusion would allow Orano to access subsidies for advanced nuclear projects.
Other green technology sectors must compete with nuclear for limited grant money.

Cruise industry urges tailored maritime Innovation Fund criteria

Cruise Lines International Association, 7 Aug 2023

The association requests dedicated maritime funding calls that reflect each shipping segment's unique needs. They want technology-neutral selection criteria that account for differences between vessels carrying passengers versus cargo. They also ask to reduce emphasis on technology maturity as an award criterion.
This would increase their access to EU funding for advanced cruise ship technologies like fuel cells and hydrogen.

Danish Shipping Demands Earmarked Funding for Maritime Fuel Projects

Danish Shipping, 7 Aug 2023

The organization wants the EU to explicitly earmark funds for the maritime sector and fuel production. They also suggest prioritizing early-stage technologies over those that are already close to being commercially viable.
Targeted funding would help shipowners cover the high costs of complying with upcoming fuel regulations.
Companies focused on vessel retrofitting or near-commercial technologies lose access to these specific subsidies.

Nucleareurope calls for nuclear inclusion in Innovation Fund

Forum Atomique Européen, 4 Aug 2023

The organization requests including nuclear projects, specifically Small and Advanced Modular Reactors, in the fund. They also advocate for a sovereignty criterion to reward domestic energy security contributions.
Inclusion would provide nuclear developers with access to significant funding and technical support.
Renewable energy providers may face increased competition for finite climate funding resources.

Climate Strategy urges wider bidding for strategic net-zero sectors

Climate Strategy, 7 Aug 2023

The organization recommends expanding competitive bidding beyond hydrogen to include strategic net-zero sectors and adding energy security criteria. They also advocate for an always open application process to better support smaller innovators.
Expanding the fund and improving its coordination increases the demand for their strategic advisory services.
Large established firms would lose the relative advantage they currently hold over smaller, more agile competitors.

SEA Europe Demands Dedicated Funding for EU Shipbuilders

Shipyards' and Maritime Equipment Association of Europe, 27 Jul 2023

SEA Europe requests dedicated yearly funding for maritime projects and a specialized expert committee to evaluate them. They also want rules ensuring that funded manufacturing and retrofitting occur within Europe.
This would help members secure funding by shielding maritime projects from competition with massive industrial plants.
Non-European shipyards would be disqualified from receiving EU funding for vessel construction and repair.

Fincantieri calls for maritime-specific EU Innovation Fund support

FINCANTIERI SpA, 27 Jul 2023

Fincantieri requests mandatory maritime-specific calls and criteria to prevent shipbuilding from being disadvantaged against heavy industry. They also argue that funding should be restricted to ships built within the EU, Norway, or Iceland.
This would secure easier access to funding by ensuring maritime projects aren't outranked by larger industrial emission reductions.
Non-European shipbuilders would be excluded from accessing Innovation Fund subsidies for ship construction.

RTE Urges Innovation Fund Access for Electricity Grid Projects

RTE Réseau de transport d'électricité, 7 Aug 2023

RTE advocates for the Innovation Fund to support innovative electricity transmission grid projects. They request funding for high-cost offshore infrastructure and demonstrators to enable decarbonization.
This change would lower financial risks for RTE's capital-intensive offshore network developments.

Greek shipowners demand dedicated funding and sector experts in awards

Union of Greek Shipowners - ΕΝΩΣΙΣ ΕΛΛΗΝΩΝ ΕΦΟΠΛΙΣΤΩΝ, 7 Aug 2023

The group demands dedicated calls for maritime projects using 20 million earmarked allowances. They request award criteria reflecting high abatement costs and including industry experts in evaluations.
These changes would secure funding for alternative fuels and reduce shipping's competitive disadvantage.
Established industries familiar with EU funding lose their relative advantage over maritime applicants.

currENT Urges EU to Adjust Innovation Fund for Grids

CurrENT Enabling Network Technology throughout Europe E.E.I.G., 7 Aug 2023

currENT requests flexible evaluation criteria and sector-specific calls for electricity grid technologies. They propose removing greenhouse gas avoidance metrics and replacing them with adjusted award requirements.
These changes would provide grid companies with a clearer pathway to funding and reduce application burdens.
Carbon intensive industries like hydrogen and carbon capture might lose their dominant share of funding.

Consultation response

European Roundtable on Climate Change and Sustainable Transition, 7 Aug 2023

ERCST welcomes the opportunity to participating in and contributing to the on-going consultation on the Innovation Fund, following the revision of the EU ETS Directive. The Innovation Fund (IF) is a key instrument to support the decarbonisation of EU economy. Providing the right incentives is key…

Consultation response

SuperNode Ltd, 7 Aug 2023

(Abstract) SuperNode Ltd finds the European Commissions intention to revise the regulation and the legal basis governing the Innovation Fund, including its complex eligibility criteria, is urgently needed. Many enabling technologies that are vital for delivering on Europes carbon mitigation and…