Grants and other support (e.g. blended finance) from the Innovation Fund, financed by auctioning 200 million allowances from reduced free allocation, are available via open competitive calls for projects scaling up low-/zero-carbon and carbon-negative products, processes and technologies across all Member States.
Businesses/projects in sectors listed in Annex I and III, including CCU, CCS, DACCS, maritime/aviation decarbonisation and clean-technology manufacturing are offered support, and this is not law yet.
Why it matters
This is a Commission proposal: it is not law yet, and it can change before it is.
- It is Art. 1(17), inserting Art. 10cb of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
- The act gives its timing as: ongoing. as of 2026-08-14
- It names 4 industries by name: Carbon capture and storage, Shipping, Aviation and Clean tech. as of 2026-08-14
- Compliance is checked by none, per call for proposals. as of 2026-08-14
- €381 million of EU grant money has been awarded to cement projects in Europe. as of 2026
The rule
project involves innovative low-carbon, zero-carbon or carbon-negative products, processes or technologies contributing significantly to decarbonisation of ETS sectors
Grants and other support (e.g. blended finance) from the Innovation Fund, financed by auctioning 200 million allowances from reduced free allocation, are available via open competitive calls for projects scaling up low-/zero-carbon and carbon-negative products, processes and technologies across all Member States.
Who is affected
Burden drivers
Source text
A fund (the ‘Innovation Fund’) is hereby established to support bringing innovation to market, and scaling-up low-, zero-carbon and carbon negative products, processes and technologies that contribute significantly to the decarbonisation of sectors covered by this Directive.
View source →