The EU’s innovation fund: Unlocking financing for climate technology

The EU Innovation Fund (IF) is a cornerstone of Europe’s climate strategy, channelling billions into technologies that will accelerate decarbonization and strengthen competitiveness.

Our Group combines deep sector expertise and proven delivery capabilities to help organizations secure funding and successfully scale climate-neutral solutions through tailored Project Development Assistance.

Driving European decarbonization 

The IF is driving Europe’s transition to climate neutrality by financing the scale-up of cutting-edge clean technologies. With a €40 billion¹ budget, it supports projects in energy-intensive industries, renewable energy, carbon capture and storage, energy storage, and net-zero mobility and buildings. Eligible organizations in the EU, Norway, Iceland, or Liechtenstein can apply for the latest round of IF2025 funding by April 23, 2026, with grants covering up to 60% of eligible costs and auctions up to 100%. Securing IF funding enables innovators to deploy climate-neutral solutions, reduce emissions, and strengthen their market position in a rapidly evolving regulatory landscape. 

Overcoming access challenges 

Despite growing funding opportunities and market demand, scaling up cleantech projects remains a major hurdle. Successful commercialization requires more than innovation – it demands a holistic approach that integrates detailed feasibility studies, rigorous financial and technical due diligence, and alignment with complex regulatory and market requirements. Projects must demonstrate a credible path to market, secure long-term investment, and build strategic partnerships. Without this, even promising initiatives risk stagnation, delaying final investment decisions (FID) and operational launch (OPS). 

The IF application process reflects these challenges. Highly competitive and governed by strict criteria, it requires projects to achieve high financial maturity scores and prove significant emissions reduction potential, as highlighted by IF24 survey results. For many organizations, the complexity of the process can overwhelm already-stretched teams, leading to delays in funding and deployment. 

Project Development Assistance (PDA) can help overcome these challenges. Our PDA services guide organizations through every step of the process by: 

• Assessing project eligibility and advising whether the Innovation Fund or another funding program offers the best fit. 

• Providing tailored support, from full proposal development to targeted assistance or quality reviews. 

With comprehensive PDA, we help projects reach financial and technical maturity – bridging the gap between early-stage development and full-scale implementation. 

“Innovation is vital to advancing net-zero solutions across Europe. While many organizations have developed promising climate technology, they need access to funding to deploy their solutions at scale. The Innovation Fund helps bridge that funding gap to drive progress in sustainability and next generation infrastructure.”  

Florent Andrillon, Global Head Climate Tech, Capgemini

At the heart of the innovation fund with the European Investment Bank 

The Capgemini-led consortium with HINICIO, Grant Thornton Greece, Adelphi, and Stantec and LDK Consultants has been selected by the European Investment Bank (EIB) to accelerate decarbonization projects by delivering PDA to eligible organizations across Europe. 

As an exclusive EIB partner, we support companies throughout the project development journey – providing technology and market assessments, feasibility studies, project preparation, and technical due diligence. 

So far, Capgemini has completed more than 10 PDAs for the EIB. Under this framework, we are expected to deliver over 150 additional PDAs in the next four years. 
 

Beyond our work for the EIB’s PDA framework, we have already supported leading players helping projects move from concept to reality. 

• Partnering with industrial and energy clients: from designing next-generation electrolysers and exploring power-to-gas concepts to delivering commercial and technical studies across all climate technologies and energy sectors. 

• Supporting the entire project cycle: feasibility and market studies, Preliminary Front-End Engineering Design (Pre-FEED) and FEED support, business-case work and technology benchmarks – helping scale-ups and established players across mobility, cement, steel, methanol and chemicals reach investment decisions. 

“Organizations spanning the energy and industry sectors – from natural gas operators to heavy mobility and electrolyser manufacturers – are working to create a low-carbon future. Securing financing to enable the full roll-out of these projects is key to achieving the energy transition.”

Arthur Arrighi, Head of Sustainable Futures, Capgemini Invent