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EU funding possibilities in the energy sector

A wide range of EU funding opportunities are available to help support Europe’s clean, secure and affordable energy future.

Calls for proposals or tenders on energy-related topics are published on the EU Funding & Tenders Portal, while negotiated procedures for energy policy actions below €144 000 are published by DG Energy. 

Cohesion Policy Funds

The EU Cohesion Policy Funds are the second largest source of EU funds for energy (after the Recovery and Resilience Facility). For the period 2021-2027, the resources allocated for energy priorities, across all cohesion policy funds, amount to €43.7 billion.

The Cohesion policy's in-built flexibility allows EU countries to adjust their investment priorities during the 2021-2027 implementation period. Under the mid-term review, €1.2 billion was reallocated to enhance energy security and industrial decarbonisation, supporting quality jobs in the green transition.

To monitor the implementation of the cohesion policy funds and to ensure they contribute to the energy union strategy, the Commission set up the Energy and Managing Authorities (EMA) Network.

EU Cohesion Fund

The Cohesion Fund aims to reduce economic and social disparities between EU countries and promote sustainable development. It provides support to EU countries with a gross national income (GNI) per capita below 90% of the EU-27 average.

The fund supports energy-related projects that benefit the environment, such as reducing greenhouse gas emissions, increasing the use of renewable energy, or improving energy efficiency.

European Regional Development Fund

The European Regional Development Fund(ERDF) is the largest of the cohesion policy funds. It aims to reduce economic and social disparities between EU regions by enabling investments in a smarter, greener, more connected, and more social Europe that is closer to its citizens.

The ERDF finances programmes under shared responsibility between the European Commission and national and regional authorities in EU countries.

Just Transition Fund

The Just Transition Fundis part of the Just Transition Mechanism, a financial tool providing tailored support to the most vulnerable and coal-intensive regions in the transition to a greener economy. Over the period 2021-2027, it will provide €40 billion in funding, primarily in the form of grants.

Alongside a dedicated scheme under InvestEU to crowd in private investment and a public sector loan facility with the EIB Group to mobilise additional investments and leverage public financing, it is expected to mobilise at least €150 billion in investments to alleviate the socio-economic impact on these regions.

Connecting Europe Facility

The Connecting Europe Facility (CEF) is the EU's funding instrument for boosting energy, transport, and digital infrastructure. With a total budget of €20.7 billion (in current prices) for the period 2021-2027, it supports investments in EU infrastructure networks for energy (€5.8 billion), transport (€12.8 billion) and the digital sector (€2.1 billion).

Every 2 years, the European Commission draws up a list of EU projects of common interest (PCIs) that may apply for CEF funding.

European Investment Bank

The European Investment Bank (EIB) is the lending arm of the European Union and one of the biggest multilateral financial institutions in the world, as well as one of the largest providers of climate finance. It aims to accelerate the green transition, boost technological innovation, bolster security and defence, and support regional cohesion and social infrastructure development. It finances many energy projects by providing companies with loans and other financial instruments.  

Together with the European Commission, the EIB launched the European Investment Advisory Hub as part of the Investment Plan for Europe. The hub acts as a single access point that provides advice and expertise on administration and project development across the EU. 

Horizon Europe

Horizon Europe is the EU’s research and innovation funding programme. It succeeds Horizon 2020 (2014 –2020).

Through Horizon Europe, around €5.6 billion will be invested in research and innovation to support the European Green Deal, accelerating Europe's transition towards clean energy and climate neutrality by 2050.

Horizon Europe’s Cluster 5 'Climate, Energy and Mobility' includes a number of energy related topics, such as energy supply, energy systems and grids, buildings and industrial facilities in the energy transition, and energy storage.

The European Climate, Infrastructure and Environment Executive Agency (CINEA) runs parts of Horizon Europe in the areas of transport and energy, as well as innovation of energy efficient technologies for buildings, heating and cooling and more.

InvestEU

The InvestEU Programme supports sustainable investment, innovation, and job creation in Europe. By the end of 2025, it had already mobilised €397 billion in investments. 

The InvestEU programme consists of 3 components  

LIFE: Clean Energy Transition

With a dedicated budget of €1 billion for the 2021–2027 period, the LIFE-Clean Energy Transition sub-programme is a primary driver of energy efficiency across the EU.

Unlike traditional infrastructure funds, LIFE-CET focuses on removing structural and organisational barriers and creating the enabling frameworks necessary for a carbon-neutral future. The programme builds the capacity of both public and private stakeholders, fostering EU-wide best practices and accelerating the implementation of ambitious energy efficiency policies.

The flagship publication, 'Giving LIFE to Europe’s clean energy transition', published in February 2026, highlights the programme's success through 28 concrete project stories. These case studies demonstrate how EU support delivers tangible and replicable solutions, transforming policy goals into on-the-ground reality across Europe.

Modernisation fund

Financed entirely from the EU Emissions Trading System, the Modernisation Fund contributes to the investment needs of 13 lower-income EU countries: Bulgaria, Croatia, Czechia, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Romania, Slovenia and Slovakia. It supports investments in the generation and use of energy from renewable energy sources, energy efficiency, energy storage, the modernisation of energy networks, and the just transition in carbon-dependent regions.

The European Investment Bank (EIB) auctions the EU allowances of the Modernisation Fund, assesses investments proposed by the beneficiary EU countries, manages revenues, and transfers resources.

Recovery and Resilience Facility

The Recovery and Resilience Facility (RRF) was launched in 2021 as the key instrument at the heart of NextGenerationEU, the EU's plan to emerge stronger from the COVID-19 pandemic. Funding is channelled through national authorities, based on national Recovery and Resilience Plans that include a comprehensive set of investments and reforms.

It is structured around 6 pillars: green transition; digital transformation; economic cohesion, productivity and competitiveness; social and territorial cohesion; health, economic, social and institutional resilience; and policies for the next generation. Energy-related measures represent a large part of the green transition component.  

With €153.8 billion allocated to energy measures (27% of the total €577 billion allocated funds), the RRF is the largest EU fund supporting energy-related measures. The RRF is helping the EU achieve its energy and climate targets, as well as its REPowerEU objectives.

The Recovery and Resilience Scoreboard monitors the implementation of the RRF and the progress made in various areas, including the green transition and REPowerEU. It also includes thematic analyses on specific topics, such as clean power and energy efficiency in buildings.

Innovation Fund

The Innovation Fund is managed by the European Climate, Infrastructure and Environment Executive Agency (CINEA). 

With an estimated revenue of €40 billion from the EU Emissions Trading System between 2020 and 2030, the Innovation Fund aims to create financial incentives for companies and public authorities to invest in cutting-edge low-carbon and net-zero technologies, and to support Europe's transition to climate neutrality. It funds projects in energy-intensive industries, carbon capture storage and utilisation, renewable energy and energy storage. 

Funding is awarded through regular calls for proposals, competitive bidding, dedicated calls and specific auctions, supporting net-zero technologies.