In this Funding Scheme episode of The Grant, I invite Irene LaRoy, Innovation Fund expert and Partner at EY, to give us all an intruction to one of EU’s flagship funding programs: the Innovation Fund. We look into why the European Commission launched theInnovation Fund as part of the European Green Deal — aiming to decarbonize heavy industry by directly supporting the construction of large-scale facilities. Irene explains the unique structure of the programme, including the different project categories (small, medium, large, pilot, and clean tech manufacturing) and the heavy focus on industrial-scale deployment rather than research.

The first episode sheds light on how Innovation Fund projects are evaluated, how relevant costs are calculated, and why financial close is a crucial milestone. It highlights theInnovation Fund’s distinctive character: it’s financed through the EU’s Emissions Trading System (ETS) and operates with stringent technical and financial demands. Finally, we look into why applying for the Innovation Fund demands strategic commitment, top-level management buy-in, and an intricate balance between innovation, technical readiness, and financial solidity. This is a double episode. In this first episode we dig into why the EU Commission established this initiative, the structure of the programme and the target group and stakeholders. Very instructive for everybody who is approaching the funding scheme.

In the second half of The Grant’s Innovation Fund introduction, Irene Larroy from EY shares with us the complex application and evaluation landscape of one of the EU’s most ambitious funding instruments for decarbonisation. In this second part we go through step-by-step the grant application process—what documents are required, how feasibility studies and financial modeling fit into the process, and what it takes to calculate eligible costs using the dreaded Excel templates.

Irene shares hard-earned insights into what makes proposals successful (or not), especially in relation to key documents like the GHG emissions calculator and the financial maturity documentation.The episode also examines how Innovation Fund proposals are evaluated: from the role of expert panels to the five core evaluation criteria—degree of innovation, GHG reduction, project maturity, replicability, and cost-efficiency. Bonus points, controversial scoring issues, and evaluation fairness across sectors are addressed with practical advice for applicants. Finally, we have a look at what happens after winning the grant, including negotiations, financial close, and the grant agreement phase—plus a few project success stories to bring it all to life.

Time codes (part 1):

00:01:50 Introduction

00:07:44 Fly in on Innovation Fund

00:09:26 EU background for the funding scheme

00:14:25 Structure of the programme

00:50:56 Target groups

Time codes (part 2):

00:02:06 How to apply

00:16:54 Evaluation

00:46:59 When receiving funding

01:00:38 Do's and don't's

01:07:32 The toughest challenge