Innovation Fund is a funding programme for the demonstration of innovative low-carbon technologies. In particular, it focuses on the following aspects

Innovative low-carbon technologies and processes in energy-intensive industries, including carbon-intensive substitutes
Carbon Capture and Utilisation (CCU)
Construction and management of carbon capture and storage (CCS)
Innovative creation of renewable energy
Energy storage
Innovation Fund is financed by the EU Emissions Trading Scheme (EU ETS), specifically through the auctioning of 450 million allowances from 2020 to 2030, and using unspent funds from the NER300 programme.

The Fund will provide around EUR 40 billion over the period 2020-2030 (EUR 75/tCO2).