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Internal Market, Industry, Entrepreneurship and SMEs

EU funding programmes and funds 2021-2027

This part of the Hydrogen Public Funding Compass provides information on EU programmes and funds that can help stakeholders finance their renewable or low-carbon hydrogen activities.

The EU budget supports the large-scale deployment of renewable and low-carbon hydrogen along the EU value chain – for the EU to meet the increased climate ambition of 55% reduction of greenhouse gas emissions by 2030 in comparison to 1990 levels, and climate neutrality by 2050.

The large number of EU funding instruments that can support hydrogen projects means that EU financing is available for a wide variety of hydrogen activities, ranging from the production of renewable and low-carbon hydrogen to its transmission and distribution, and application in industry and for mobility purposes, among others. Individual projects can obtain funding from several EU funding instruments in combination, provided that there is no double funding of the same costs.

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EU funding programmes and funds 2021-2027 (10)

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The Connecting Europe Facility for Energy (CEF-E) is a funding instrument for targeted infrastructure investment at European level. It supports the implementation of the Regulation on Trans-European Networks for Energy (TEN-E), which is focused on linking the energy infrastructure of EU countries.

The Connecting Europe Facility for Transport (CEF-T) finances projects that upgrade infrastructure and remove bottlenecks while promoting sustainable and innovative mobility solutions. It supports hydrogen refuelling infrastructure for all modes of transport (road, rail, maritime, inland waterways).

The European Regional Development Fund (ERDF) and the Cohesion Fund (CF) are part of the EU’s Cohesion Policy (it is almost one third of MFF 2021-2027). ERDF and CF support innovation and entrepreneurship in the transition to a climate-neutral economy. REACT-EU is providing additional funds to ERDF.

Horizon Europe 2021-2027 is the EU’s key funding programme for research and innovation. Pillar II and III of Horizon Europe are focused on the deployment of low-carbon industry applications and breakthrough technologies, including hydrogen. It must involve the research and innovation element.

One of the world’s largest funding programmes for the demonstration of innovative low-carbon technologies. The fund finances demonstration projects on innovative production and use of low-carbon and renewable hydrogen at pre and commercial scale, with the aim of bringing it to market.

InvestEU provides a budgetary guarantee to the EIB Group and selected implementing partners with the aim to facilitate access to finance for riskier projects. It finances sustainable infrastructure; research, innovation and digitalisation; SMEs; and social investment skills.

The Just Transition Fund (JTF) is one of the EU’s Cohesion Policy funds. Its aims to reduce the social and economic impact resulting from the transition to climate neutrality in the most affected regions, given their dependence on fossil fuels or on carbon-intensive industries.

LIFE 2021-2027 is the only EU funding programme entirely dedicated to environment, climate and energy. It includes the Clean Energy Transition sub-programme. It is oriented to projects in early phase demonstration, in governance, and in catalyst projects for large-scale deployment solutions.

The Modernisation Fund is a fund supporting 10 lower-income EU countries’ transition to climate neutrality through the modernisation of their energy systems and improved energy efficiency. It supports investments in energy storage, generation and use of renewable, and energy networks.

The Recovery and Resilience Facility (RRF) is the centrepiece of the EU’s recovery plan, called NextGenerationEU. Its goal is to make EU economies and societies more sustainable by supporting green and digital transition. Project financing depends on what each EU country has included in its plan.