EU financial tools for strengthening the green renewal and economy recovery

Innovation Fund


European Commission plans to support investments to the innovative technologies by an Innovation Fund in order to reduce significantly the emissions of greenhouse gases, with focus to the following segments:

  • low-carbon technologies and processes in the energetically demanding industrial sectors (steel production, chemical industry, cement manufacture etc.), including replacement of carbon-demanding products,
  • carbon capture and use (CCU),
  • construction and operation of carbon capture and storage (CCS),
  • innovative production of the renewable energy,
  • energy storage,

by means of grants, contributions to the operations of combined financing (tool of the Union for investment support) or another form concordant with the Regulation on budget rules. The expected financial volume for the years 2020 to 2030 will reach app. 10 bill. Euro (depending on the carbon cost) [1, 2].

The Innovation Fund has the following operational targets [1]:

  • to support projects demonstrating the highly innovative technologies, processes or products, that are sufficiently advanced and that have a potential to reduce the greenhouse gases emissions;
  • to offer financial support adapted to the market needs and to risk profiles of the eligible projects, and to attract further public and private resources at the same time;
  • to ensure the administration of incomes to the Innovative Fund in compliance with the Regulation No. 2003/87/EC.

The detailed framework information as support formats, calls for proposals, support application submission procedures, selection criteria and selection procedures of projects, relevant costs, support payment etc. are described in the Delegated Regulation of the Commission No. EU 2019/856, amending the Directive EPR No. 2003/87/EC on the operation of the Innovation Fund.

The first call for proposals was launched on July 7th, 2020, and it is oriented to the projects on low-carbon technologies and processes in all sectors covered by the Regulation No. 2003/87/EC (EU Regulation ETS), available at:


Modernisation Fund


The Modernisation Fund represents another supporting tool of the European Commission for facilitation of transition to climate neutrality by means of assistance in modernisation of energetic systems and improvement of energy efficiency of the ten lower-income EU Member States including Slovakia until the year 2021.

The Modernisation Fund will support the investments to [3]:

  • production and exploitation of energy originating from renewable resources,
  • energy efficiency,
  • energy storage,
  • modernisation of energy networks including long-distance heating, pipelines and distribution networks,
  • reasonable transition of the carbon- dependent regions: transfers, qualification increase and training of employees, education, initiatives in job seeking and start-up enterprises.

Remarks and sources:

[1] European Commission, 2019: Delegated Regulation of the Commission No. EU 2019/856, amending the Directive EPR No. 2003/87/EC on the operation of the Innovation Fund. Available on:

[2] Information to the Innovation Fund are available on:

[3] Information to the Modernisation Fund are available on:

July 17th,  2020