Innovation Fund 2026: What to expect

The first indications for the next Innovation Fund 2026 call (IF26) do not point to a major change in direction. The Net-Zero Technologies Call is expected to remain the main funding instrument, covering large, medium-sized and small-scale projects, as well as pilots and cleantech manufacturing. The basic funding conditions also appear likely to remain largely stable.

Still, several changes are emerging that applicants should take seriously. In some areas, the Innovation Fund may become easier to navigate. At the same time, projects will need to be even more convincing in terms of technical readiness, regulatory feasibility and market perspective.

What is changing: Innovation Fund 2026

Based on the information currently available, five developments stand out.

1. Project maturity: fewer redundancies, clearer requirements
   The assessment of project maturity is expected to continue covering technical, financial and operational aspects. However, simplifications have been announced, including fewer supporting documents and less overlap in the requirements. This does not mean that the bar will be lowered. But project descriptions may become clearer and more streamlined.

2. Permitting will become more important
   Permitting and regulatory requirements are likely to be assessed earlier and more systematically. For many projects, a convincing implementation pathway will therefore be just as important as technological maturity.

3. Relative emissions avoidance could gain importance
   Absolute emissions avoidance, which is often driven by project size, might become less decisive. An option presented by the Commision is to shift focus towards relative emissions avoidance, meaning the level of emissions reduction compared to the baseline.

4. Relevant cost calculation may become simpler
   The possible removal of the comparison with a reference plant could reduce the financial modelling effort. However, financial plausibility will remain a key part of the assessment.

5. Competitiveness and scalability could gain weight
   In addition to innovation, CO₂ reduction and project maturity, it might potentionally become more important to show whether a project can scale, strengthen European value chains and contribute to the transformation of key industries.

New call structure: more visibility for specific target groups

The established Innovation Fund call structure is expected to remain largely stable. At the same time, certain target groups are likely to be addressed more specifically. In addition to the Net-Zero Technologies Call, a second Heat Auction, a fourth European Hydrogen Bank Auction, a dedicated Maritime Call and an SME Call for small-scale projects are planned.

With the planned Maritime Call, maritime decarbonisation projects are expected to gain more visibility within the Innovation Fund 2026 and likely a dedicated budget.

A dedicated call for small-scale projects from SMEs is also planned. The Commission is considering a simplified application process, including reduced information requirements, a simplified GHG calculator and simplified reporting and monitoring. Some assessment criteria, such as GHG, cost efficiency and replicability, could be assessed on a pass/fail basis.

Based on the current information, two deadlines are expected for the SME Call: March 2027 and September 2027. Evaluation is also expected to be faster, with March applications assessed by June and September applications by December.

Larger SME projects are still expected to fall under the Net-Zero Technologies Call.

What does this mean for applicants?

IF26 is not expected to be fundamentally different, but the emphasis is shifting. Relative emissions avoidance, permitting, and the contribution to European competitiveness are likely to play a stronger role in the assessment. At the same time, administrative simplification does not mean that applications will become easy. Success in the Innovation Fund 2026 will depend on whether a project can be clearly presented and backed up by credible assumptions.

Companies should therefore not wait until the calls are published to assess their projects’ chances. Many aspects that will later determine the quality of an application can already be reviewed now, based on the expected continuity of the programme and the information currently available. These include permitting status, regulatory dependencies, investment assumptions, emissions calculations, scalability and technical readiness.

For companies with several potential projects, an early portfolio review can also be useful: Which projects are likely to fit best with the IF26 structure? Which assumptions still need to be defined? And where is further clarification needed before an application can be prepared?

Our IF team reviews individual projects and project portfolios, challenges critical assumptions, identifies where further work is needed and clarifies which steps can already be addressed before the call is published.

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