The European Commission is expanding the Innovation Fund with new funding opportunities for innovative decarbonisation projects. In December 2026, five Innovation Fund calls and auctions are expected to open. These include a new dedicated call for SMEs and a separate call for the maritime sector. Together with new opportunities for net-zero technologies, industrial heat and hydrogen, the 2026 programme offers several routes for organisations developing and scaling up low-carbon technologies.
Changes within the Innovation Fund
The Innovation Fund is one of the EU’s main funding instruments for bringing innovative low-carbon technologies to the market. The programme is financed through revenues from the EU Emissions Trading System (EU ETS). Because the Innovation Fund is an important programme within the EU, it has been updated with two new calls:
- IF26 SME call
- IF26 Maritime call
For the upcoming 2026 funding round, the European Commission plans five opportunities:
- IF26 Net-Zero Technologies Call: the regular Innovation Fund call for innovative net-zero technologies;
- IF26 SME Call: a new call specifically designed for small-scale projects led by SMEs;
- IF26 Maritime Call: a dedicated call supporting innovative technologies for the decarbonisation of the maritime sector;
- IF26 Heat Auction: an auction for the decarbonisation of industrial process heat, with a planned budget of € 1 billion;
- IF26 Hydrogen Auction: the fourth hydrogen auction under the European Hydrogen Bank, with a planned budget of up to € 500 million.
€ 200 million Innovation Fund call specifically for SMEs
One of the most notable additions is the IF26 SME Call. The European Commission plans to make € 200 million available for this new call, aimed at SMEs with projects involving capital expenditure between € 2.5 million and € 20 million.
The application process is being adapted to make the Innovation Fund more accessible to SMEs. Applicants can expect fewer information requirements, a simplified method for calculating greenhouse gas emission avoidance and lighter reporting and monitoring requirements.
Dedicated Innovation Fund call for maritime decarbonisation
The IF26 Maritime Call creates a separate funding opportunity for the maritime sector. The call is intended to accelerate the deployment of first-of-a-kind low- and zero-carbon technologies. Potential areas of support include advanced energy-efficiency measures, sustainable alternative fuels, electrification, zero-emission propulsion technologies and innovative port infrastructure. Projects must have capital expenditure of at least € 2.5 million. This dedicated call is particularly relevant for shipowners, ports, technology developers and other organisations working on solutions that can substantially reduce greenhouse gas emissions from maritime transport.
Industrial heat and hydrogen remain key priorities
In addition to the new SME and Maritime Calls, significant funding is planned for industrial decarbonisation. The IF26 Heat Auction is expected to provide € 1 billion for technologies that reduce emissions from industrial process heat. Eligible solutions include electrification technologies such as heat pumps and electric boilers, as well as renewable heat technologies.
The IF26 Hydrogen Auction is expected to have a budget of up to € 500 million. It will support renewable hydrogen production and, under one of the planned topics, electrolytic low-carbon hydrogen.
Preparing for the Innovation Fund 2026 calls
With several Innovation Fund calls and auctions scheduled to open around the same time, choosing the funding route that best matches your project is an important first step. Eligibility, project maturity, expected emission reductions, investment size and the chosen technology can all influence the most suitable route.
Organisations considering an Innovation Fund application can already start assessing their project against the expected requirements and preparing the technical, financial and climate-related information needed for an application. Would you like to explore whether your project could qualify for the Innovation Fund? FirstBlue can help you assess the available opportunities and prepare for the upcoming 2026 calls.
