The European Commission has committed funding worth more than €10 billion (£8.6bn) for innovative low carbon technologies.
The Innovation Fund aims to create the right financial incentives for businesses and local authorities to invest in the next generation of low carbon technologies.
The Commission intends to launch the first call for proposals in 2020 and will run up until 2030, with grants covering up to 60% of the project.
It will pool together resources from the sale of carbon allowances under the the EU Emissions Trading System (EU ETS) over the next decade and any funds left from the NER 300 programme will also be added to the new Fund.
Miguel Arias Cañete, Commissioner for Climate Action and Energy said: “Less than three months after adopting our strategic vision for a climate neutral Europe by 2050, we are putting the money where the mouth is. Our objective is to keep building a modern, competitive and socially fair Paris-aligned economy for all Europeans. For this to happen, we will need deployment of clean innovative technologies on an industrial scale.
“This is why we are investing in bringing to the market highly innovative technologies in energy intensive industries, in carbon capture, storage and use, in the renewable energy sector and in energy storage. We are unleashing technological solutions in all member states and pressing the fast forward button in our transition to a modern and climate neutral society in Europe.”