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Why is clean energy innovation important?

While most of the CO2 emission reductions envisioned in the Net Zero by 2050 Scenario can be achieved by 2030 with existing technologies, the path beyond that will require the deployment of technologies which are still in development or are not yet commercially competitive.

What is the role of innovation in clean energy transitions?

Technological innovation has been a major driver of the recent progress in energy transitions, with falling costs and growing capabilities for key technologies such as solar panels and electric vehicles, as well as major strides in energy efficiency.

Where do we need to go?

To get on track for net zero, innovation will need to accelerate further, particularly to address sectors where decarbonisation is hard or impossible with available technologies, like heavy industry and long-distance transport.

While most of the CO2 emission reductions envisioned in the Net Zero by 2050 Scenario can be achieved by 2030 with existing technologies, the path beyond that will require the deployment of technologies which are still in development or are not yet commercially competitive.

Technological innovation has been a major driver of the recent progress in energy transitions, with falling costs and growing capabilities for key technologies such as solar panels and electric vehicles, as well as major strides in energy efficiency.

To get on track for net zero, innovation will need to accelerate further, particularly to address sectors where decarbonisation is hard or impossible with available technologies, like heavy industry and long-distance transport.

Tracking Clean Energy Technology Innovation

More efforts needed

Innovation in clean energy technologies needs to accelerate to get on track with the Net Zero Emissions (NZE) by 2050 Scenario. While most of the CO2 emission reductions needed by 2030 can be achieved with technologies available on the market, the path to 2050 relies on technologies that are not yet ready for widespread uptake but must become available this decade, particularly in sectors that are hard to decarbonise such as heavy industry and long-distance transport. 

Since our last assessment in 2022: 

Technology readiness has advanced in key areas such as certain electric vehicle (EV) batteries, low-emission hydrogen production and carbon capture in cement production. 

Spending on innovation is growing – such as through public and corporate energy research and development (R&D) budgets or venture capital (VC) investments in clean energy start-ups – despite the global energy and macroeconomic crisis, Russia’s invasion of Ukraine and the long tail of the Covid-19 pandemic. 

Major policy developments – such as the Inflation Reduction Act in the United States, the Net Zero Industry Act in the European Union, and the 14th Five-Year Plan already in place in China – could significantly accelerate innovation and improve competitiveness of pre-commercial technologies, but an over-emphasis on domestic strategies could also risk creating barriers to knowledge sharing. 

Several technologies have seen important developments since our last assessment, from EV batteries to low-emission hydrogen production and carbon capture in cement production

The IEA Clean Energy Technology Guide contains information on more than 500 individual technology designs and components that can contribute to getting on track with the NZE Scenario. There have been important developments across various sectors since our last assessment in 2022, as well as several additions to our tracking. Selected examples are featured below. 

Selected technology developments and additions in the IEA Clean Tech Guide, 2021-2023

Tcep Innovation Energy System Cross Cutting 2023
Selected technology developments and additions in the IEA Clean Tech Guide, 2021-2023
Tcep Innovation Energy System Cross Cutting 2023

First commercial operation of electric vehicles powered by critical mineral-free sodium-ion batteries

Why is this technology important?

Sodium-ion batteries have the potential to completely avoid the use of less abundant critical metals, and are the only battery chemistry currently under development that does not require lithium. Their main drawback is their lower energy density, which means that they are better suited to stationary storage and lower-range EVs. 

What happened?

In 2022, the world’s largest battery manufacturer, CATL, announced that it would begin production of sodium-ion batteries by 2023, and the IEA assessment of this technology increased from TRL 3/4 (early prototype) to TRL 6 (full prototype at scale) as a result. Since then, multiple carmakers have announced plans to market sodium-ion electric cars (e.g. BYD’s Seagull), indicating further technological progress and an upgrade to TRL 8 (first-of-a-kind commercial) if sales materialise as planned. 

What remains to be done?

In the NZE Scenario, today’s early-stage EV technologies, including advanced battery designs and alternative chemistries such as sodium-ion batteries, reach market maturity by 2030, helping to guarantee continued cost declines, improved performance and lower exposure to materials with volatile prices. The sodium-ion batteries developed by CATL are estimated to cost 30% less than lithium iron phosphate batteries, but their energy density remains much lower than lithium-ion counterparts. More efforts will be needed to develop alternative battery chemistry options for higher-range vehicles, such as solid-state batteries. There is also uncertainty on the number of charge-discharge cycles sodium-ion batteries can endure: some prototypes claim a 80% capacity retention for 400 cycles, others more than 3 000 cycles, while lithium-ion batteries average at 3 500. For more information, see the IEA Global EV Outlook

Large-scale demonstration of solid oxide electrolysers to produce hydrogen

Why is this technology important?

Solid oxide electrolysers (SOEC) are the most efficient technology among electrolyser designs, resulting in lower electricity demand, and can be integrated in industrial processes where waste heat is available. In addition, they have lower requirements for critical material than the two main types of electrolysers used today (alkaline and proton exchange membrane). The co-existence of several designs can help to diversify and increase the resilience of electrolyser supply chains. 

What happened?

The two largest demonstration SOEC electrolysers started operating in 2023. Sunfire installed a 2.6 MW SOEC electrolyser in a Neste oil refinery in the Netherlands, and Bloom Energy installed a 4 MW electrolyser in a NASA research centre in California. Bloom Energy also increased its manufacturing capacity in 2022, moving towards GW-scale operations in the United States. Topsoe advanced the construction of an industrial-scale 500 MW/yr manufacturing facility in Denmark, expected to be online in 2025. Based on these developments, SOEC are quickly approaching niche commercialisation, having only been commercialised in the past year. As a result, the IEA assessment of SOEC electrolysers has increased from TRL 7 (pre-commercial demonstration) to TRL 8 (first-of-a-kind commercial). 

What remains to be done?

In the NZE Scenario, the cumulative deployment of electrolysers for low-emission hydrogen reaches over 550 GW by 2030, up from under 1 GW in 2022. The rapid commercialisation of all electrolyser designs can facilitate this level of deployment by diversifying the technology pool and reducing pressures in the scale up of supply chains. 

Scaling up carbon capture in cement production through direct separation of process CO2 emissions

Why is this technology important?

Process emissions from the calcination of limestone make up about two-thirds of global emissions of the cement industry and are the hardest to abate. Lowering these emissions will rely on widespread deployment of low-cost carbon capture. By performing the calcination of limestone in a sealed vessel, direct separation makes it possible to obtain a concentrated stream of CO2, which simplifies the capture process and is expected to result in considerably lower capture costs. If the source of heating is low- or zero-carbon, the process could achieve near zero-emission cement production. 

What happened?

Following the success of LEILAC-1, which attained a carbon capture capacity of 25 ktCO2/yr at a cement plant in Belgium, LEILAC-2 was announced and awarded EUR 16 million from the EU Horizon programme. The project aims to build a scalable and modular design with an operational capacity of 100 ktCO2 per year to be retrofitted into Heidelberg Materials cement plant in Hanover. As of early 2023, the final investment decision has been passed and construction period has started. If plans materialised as announced, the IEA assessment of this technology would increase from TRL 6 (full prototype at scale) to TRL 7 (pre-commercial demonstration).  

What remains to be done?

Engineering studies for other projects looking at applying this technology in commercial settings began in 2022. Application of the technology in emerging markets and developing economies (EMDEs) needs to be advanced in particular, as they currently produce 85% of the emissions from the cement industry, a trend which is expected to continue. Use of low-emission fuel sources such as renewable electricity as the heating source needs to be developed, proven, and taken up for this to become a near zero-emission production method. Further developing CO2 utilisation and storage technologies is also important, in parallel to carbon capture. 

Floating offshore wind parks are getting bigger than ever

Why is this technology important? Offshore wind will be an important source of renewable electricity in the transition to net zero, but around 80% of the world’s offshore wind resource potential lies in waters deeper than 60 metres. Floating turbines are needed to utilise this resource. Floating offshore wind can also be used to produce hydrogen, thus supporting broader decarbonisation efforts.  

What happened? Floating offshore wind is not a new technology. The first MW-scale floating turbines were installed in the 2000s and the first commercial project (Hywind Scotland, 30 MW) started operating in the United Kingdom in 2017. As of 2022, global installed floating offshore wind stood around 190 MW, or just 0.3% of total offshore wind capacity. The success of smaller-scale demonstrators, further technology advancements and cost reductions are now convincing countries and corporates to scale-up and include floating offshore wind in their planning. Far larger projects are under construction, at capacities of up to 90 MW, with floating parks of several hundred MW announced for 2025-2026. In China, a 1 GW farm is planned for 2027 in Wanning (Hainan). Plans for a 6-GW floating wind farm for 2030 have been announced in Korea. Countries are setting more ambitious targets, such as the United States (15 GW by 2035) and the United Kingdom (5 GW by 2030). Most operating projects use semi-submersible or spar-type floating foundations, which in the IEA assessment have reached TRL 8 (first-of-a-kind commercial demonstration) and this could be further upgraded in the coming years if announced projects come to fruition. In 2022, the world’s first floating hydrogen production platform was inaugurated in France, with electricity from a floating offshore wind turbine. 

What remains to be done? Floating offshore wind is expensive, with electricity costs being roughly 50% higher compared to fixed-bottom offshore wind. Further cost reductions, for example through standardisation and modularisation, will be critical for the success of the technology. The United States announced a Floating Offshore Wind Shot, with the aim of reducing costs by 70% to USD 45/MWh by 2035. 

Bioleaching for electronic waste recycling and metal recovery moves to first-of-a-kind commercial operation

Why is this technology important?

This technology makes use of micro-organisms to help recover metals (lithium, cobalt, copper, nickel, manganese, aluminium), which could prove important for meeting demand for key critical minerals for energy technologies in the future, as well as reducing energy consumption relative to production from raw minerals. Waste is ground to a fine powder in which bacteria thrive, dissolving the contained metals, which can then be extracted.  

What happened?

Bioleaching has already been in use in the mining industry for years, with about 5% of gold and 20% copper produced with this technology. In 2022, company Mint Biomining built the first electronic waste biorefinery in Australia after receiving AUD 4.2 million (USD 2.7 million) in public funding. This plant is set to recycle 3 000 tonnes of electronic waste per year. As a result, the IEA assessment of bioleaching for electronic waste – including lithium-ion batteries – increased from a TRL of 3-4 (early prototype) to 8 (first-of-a-kind commercial). 

What remains to be done?

The competitiveness of this technology compared to more conventional metal recycling methods such as pyro- and hydro-metallurgy remains to be demonstrated. Furthermore, while the efficiency rate through bioleaching can be higher than via other methods, it takes much longer. 

Vacuum insulation panels to improve insulation in buildings become more widely available commercially

Why is this technology important?

Vacuum Insulation Panels (VIPs) are a thin and high-performance insulation material, allowing for a thinner building envelope that is therefore relevant for applications where space is limited – as in most urban environments. Many existing buildings will still be standing by 2050, and not all meet energy efficiency standards. VIPs are particularly important for the renovation of existing buildings, a critical pillar to achieve net zero emissions. 

What happened?

VIPs are not an entirely new technology, and have already been used in infrastructure projects such as the renovation of London Bridge Station (2018) and the construction of the Grand Tower Frankfurt (2020). As of 2023, these panels are commercially available through several companies. The IEA assessment has therefore increased VIPs from TRL 8 (first-of-a-kind commercial) to TRL 9 (commercial operation in relevant environment). 

What remains to be done?

VIPs would need to last for more than 25 years to be a good fit for widespread building applications. While there have been installations in the past 15 years, few cases have long-term monitoring that would be necessary to draw conclusions on long-term performance. Furthermore, the ISO standard on VIPs is still under development. 

Global support for clean energy demonstrators ramps up and there are still many opportunities ahead

At least USD 90 billion in public funding needs to be allocated globally by 2026 for demonstration projects in clean energy technologies for them to be commercially ready by 2030 and help deliver net zero emissions by mid-century. In September 2022, several governments (Australia, Canada, the European Commission, Finland, France, Germany, Japan, the Netherlands, Norway, Poland, the Republic of Korea, Singapore, Sweden, the United Arab Emirates, the United Kingdom and the United States) came together and committed USD 94 billion by 2026 for clean energy demonstration.  

The IEA tracks major demonstration projects in a freely accessible database, which is updated regularly. As of mid-2023, for example, the database listed over 170 clean energy demonstration projects in industry, a sector where emissions can be hard to abate and many clean energy technologies still require demonstrating. Most of these projects were located in IEA member countries, particularly in Europe and North America. Data on funding remains scarce overall, but current tracking suggests public funding is essential to push forward demonstration in these technology areas, accounting for a large share of total funding – between 40-70% in most cases with some private co-funding, and up to 90% in some cases. 

Examples of key projects include: 

  • Aluminium. Carbon-free aluminium smelting is making progress, as the Elysis project is expected to reach commercial scale in 2024 through deals with major companies like BMW. Electrification efforts for alumina refining include Alcoa’s Mechanical Vapour Recompression project and Renewable Powered Electric Calcination pilot in Australia, and Alunorte’s first commercial operation of an electric boiler – a more mature technology – in Brazil.  
  • Cement. As mentioned above, a final investment decision was made for the LEILAC-2 project, a large-scale demonstration of capturing process CO2 emissions through direct separation in cement production, after the successful completion of LEILAC-1. 
  • Chemicals. Six petrochemical companies in Belgium, Germany and the Netherlands (BASF, Borealis, BP, LyondellBasell, SABIC and Total) launched the “Cracker of the Future” consortium in 2019 to investigate how naphtha or gas steam crackers could be operated using renewables through electrification instead of fossil fuels to produce base chemicals. In 2022, BASF, SABIC and Lince started construction of a multi-megawatt demonstration plant to start operations in 2023. 
  • Iron and steel. After producing the world’s first fossil-free steel through hydrogen-based direct reduction in 2021, the Hybrit project is making progress and aims to demonstrate industrial-scale production in 2026. As part of the programme, the world’s first rock cavern hydrogen storage facility started operations end-2022, with demonstration running until 2024. Meanwhile, the European Commission approved in 2023 state support to ArcelorMittal to demonstrate low-emission industrial steel production through hydrogen-based direct reduced iron in Gijon (Spain) for EUR 460 million and in Hamburg (Germany) for EUR 55 million, with operations expected to start in 2025-2026.  

Public and private spending on energy R&D increased in 2022 and clean energy venture capital continued to outperform other sectors of the economy

Government spending on energy R&D increased in 2022, despite macroeconomic uncertainty, but growth in China masks sluggishness elsewhere

Governments have a major role to play in shaping energy innovation priorities, including by allocating public budgets for energy RD&D. In 2022, public spending on energy R&D rose to nearly USD 44 billion globally, over 80% of which was allocated to clean energy R&D. At 5%, the increase was nearly on par with the average growth rate over the 2017-2021 period of 7%, but slower than the post-Covid-19 9% growth rate in 2021.  

Spending on energy R&D by governments, 2015-2022


As in 2021, we estimate that in 2022 China was the largest source of public energy R&D spending growth in absolute terms, accounting for a third of the global total, as support for clean energy innovation strengthened under the 14th Five-Year Plan (2021-2025). China has consolidated its place as the world’s top energy R&D spender, ahead of Europe and the United States, with growth in China masking less encouraging trends elsewhere. With the exception of Australia and Belgium, which recorded notable increases, there was a dip of 1.5% in 2022 among IEA member countries for which data are available. While the impacts of the pandemic do not seem to have led to a significant setback, the expectations of a spending boost as economies recovered are yet to materialise. Stagnation would not bode well for countries that are seeking to bolster their competitiveness in clean energy supply chains and manage inflationary pressures. Our estimates indicate that spending in EMDEs outside China has not grown in the past five years, accounting for just 5% of the global total in 2022. 

Corporate energy R&D spending confirmed its return to growth in 2022, with batteries, hydrogen and renewables moving more quickly than other energy segments

In 2022, energy R&D spending by listed companies was up 10% relative to 2021, reaching USD 131 billion. While this growth rate was slightly under that of 2021 (14%), both years stand significantly above pre-pandemic rates, indicating swift recovery. Spending in 2022 was 25% higher than pre-pandemic levels in 2019.  

However, in many cases spending did not keep pace with higher revenues for energy companies, reflecting the fact that R&D budgets are typically set in advance and that high energy prices were unanticipated. This opens opportunities to further increase R&D spending in 2023. Much of the growth in recent years has come from companies headquartered in China, which accounted for over 40% of the total in 2022 compared to 20% in 2015. In Europe and the United States, growth stood at around 5% in 2022 relative to 2021. We estimate that in 2022, EMDEs excluding China accounted for about 3% of corporate energy R&D spending (by country of headquarters). 

Spending on energy R&D by listed companies, 2015-2022


In 2022, lines of business that saw important growth included the following: 

  • Automotive, the biggest area of energy-related corporate R&D spending, was up 8% to USD 52 billion. 
  • Spending on batteries, hydrogen and fuel cells boomed by 50% relative to 2021 to USD 5 billion, nearly five times the level in 2015.  
  • Spending on renewables was up 15% to USD 15 billion, more than double the level in 2015. 
  • To compare, spending on oil and gas was up 6% to USD 19.5 billion and coal mining and processing up 15% to USD 6.7 billion. 

Heavy industry and the long-distance transport sector require some of the most transformational technology changes in the NZE Scenario. This turns the spotlight on companies outside those typical to the energy sector, which allocate only part of their R&D to energy efficiency or fuel switching. Key developments in these sectors in 2022 included: 

  • Cement companies spent USD 3.5 billion on R&D, a small increase of 5% relative to 2021 but nearly three times the levels in 2015.  
  • Similarly, iron and steel producers spent about USD 18 billion on R&D, a slight 1% increase relative to 2021, but more than twice the budgets allocated in 2015.  
  • Chemicals producers increased spending by 10% in 2022 to USD 54 billion, its first significant increase since 2015 levels. 
  • In pulp and paper production, R&D spending dipped slightly but remained above the USD 2 billion threshold, around 40% higher than spending levels in 2015. 
  • After a dip in 2021 in the wake of the Covid-19 pandemic, R&D spending by long-distance transport companies rebounded in 2022, to more than 2019 pre-pandemic levels in many cases. Spending was up by 9% in aviation to just under USD 14 billion, 7% in rail to nearly USD 5.5 billion, and 6% in shipping to USD 3.1 billion and 6% in trucks to nearly USD 14.5 billion. 

Clean energy continued to outperform other venture capital segments in 2022, demonstrating investor confidence in energy transitions, but not enough to escape the global tech slowdown

Early-stage VC typically supports entrepreneurs with funding for technology testing and design. This is often a good fit for technologies with lower upfront capital needs, but in recent years it has increasingly been directed to more “asset-heavy” technologies (e.g. heavy industry, long-distance transport, carbon capture, utilisation and storage [CCUS] and nuclear).  

A new high was reached in 2022 as energy technology start-ups raised USD 6.7 billion of early-stage VC funds, up nearly 20% relative to 2021 and three times as high as pre-pandemic levels in 2019. Most notably, start-ups in CO2 capture, energy efficiency, nuclear and renewables nearly doubled or more than doubled their 2021 level of funding, which was already much higher than the average for the preceding decade.  

Early-stage venture capital investment in clean energy start-ups by technology area, 2015-2022


Growth-stage venture capital investment in clean energy start-ups by technology area, 2015-2022


Early-stage energy VC has shown impressive resilience to the economic impacts of the pandemic and the global macroeconomic crisis. Clean energy is set to continue to outperform other segments – such as agriculture and food, bio, medical and digital technologies – for which VC investment has fallen dramatically since 2021. This indicates continued investor confidence in energy transitions and recognition of major market opportunities for disruptive new energy technologies. Preliminary data for the first quarter of the year suggest growth could continue in 2023. 

Meanwhile, growth-stage funding, which requires more capital to fund less risky innovation, product development and scale-up, rose by only 1% in 2022 and was very weak in Q1 2023. Global macroeconomic difficulties have reduced the amount of capital available and raised the cost of scaling up nascent businesses, despite higher fossil fuel prices in 2022 that could have contributed to making many clean energy start-ups a more attractive proposition. Ongoing restraint in the banking sector suggests investment is not expected to bounce back quickly. 

While a few EMDEs outside China are seeing strong activity in some cases, such as India, which accounts for a large share of global VC investments in electric two- and three-wheeler start-ups, we estimate that in 2022 these countries accounted for only around 5% of energy VC (by country of start-up headquarters). 

Recently announced major policy packages to boost clean energy supply chains could accelerate technology development

Since our last assessment in 2022, we observe a trend towards indirect policy support for clean energy innovation through industrial and supply chain strategies. Several governments have put forward major policy packages aiming at reshoring technology development and manufacturing. While these plans are not innovation-specific, they could significantly accelerate the rate of innovation and improve the competitiveness of pre-commercial technologies but may also erect barriers to knowledge sharing between regions. Batteries and critical minerals, hydrogen, advanced renewables and nuclear have gained particular focus. 

Major policy highlights in 2022-2023 include the United States’ Inflation Reduction Act (August 2022). The Act includes direct R&D funding (e.g. USD 2 billion for improvements to federal laboratories up to 2027), support for the scale-up of near-commercial technologies (e.g. USD 3.6 billion to guarantee up to USD 40 billion of loans to innovative technology projects and 50% grants to demonstration projects for industrial decarbonisation by 2026), and incentives for companies to develop better products (e.g. tax credits for domestic equipment manufacturing, low-emission fuel production, home retrofits and vehicles). Hydrogen, CCUS, electric vehicles and batteries, and critical minerals rank among core focus areas. These measures are in addition to the US Infrastructure Investment and Jobs Act, which provides extensive direct support, such as through the Office of Clean Energy Demonstrations, which as of mid-2023 had announced nearly USD 26 billion for projects across hydrogen, CCUS, industry, power and energy storage, and through the Office of Energy Efficiency and Renewable Energy, which provides up to USD 750 million for R&D and demonstration in clean hydrogen electrolysis, use and recycling. Other indirect measures include delays to corporate R&D amortisation until 2025 to stimulate private-led innovation. 

In the European Union, the Net Zero Industry Act and Green Deal Industrial Plan (Q1 2023) include targets for manufacturing, public procurement guidelines and regulatory exemptions for clean energy technology. The Act also expands support for innovation through the EU Innovation Fund and proposals for net zero regulatory sandboxes. These measures provide detail on energy technology as part of the overall New European Innovation Agenda (Q3 2022). Financing is not yet fully fleshed out, but there are indications that the Innovation Fund could dedicate EUR 40 billion to Green Deal R&D by 2030. In mid-2022 the Fund awarded EUR 1.8 billion of direct funding to 17 large projects in batteries, hydrogen, solar and wind, and – in response to the ongoing energy crisis – the fund’s budget has been doubled to EUR 3 billion for the next round. The European Union also runs five Important Projects of Common European Interest (IPCEI) to fund new technologies in hydrogen, batteries and microelectronics, for a total approved public funding of EUR 18 billion, expected to unlock a further EUR 36 billion in private funding. The European Union also operates InvestEU to support private-led technology development. Since 2020 the European Investment Bank (EIB) has extended EUR 7 billion in loans to support the energy-related R&D programmes of 45 firms, and in 2022 new energy R&D credit from the EIB reached its highest value since 2013, when such loans were a response to the global financial crisis. Recent focus is less on the automotive sector than in 2012-2017 and more on renewables and industrial decarbonisation. Under InvestEU, the EU also partnered with Breakthrough Energy Catalyst to invest USD 1 billiion over 2022-2026 in projects in hydrogen, aviation fuels, direct air capture and long-duration energy storage. 

Many individual countries have also set out policies to expand support to clean energy innovation. A selection of such policies is featured in the table below, and more information is available in the IEA policies and measures database and the online policy explorer developed by the OECD and European Commission focusing on science, technology and innovation policies. 

Selected recent policy developments to support clean energy innovation




Technology areas


Critical Minerals Strategy 2023

AUD 100 million

Critical minerals

New support unveiled in 2022-2023 for projects focusing on critical minerals to develop domestic clean energy supply chains. This includes setting up an R&D Hub with a total budget of up to AUD 50 million, and a development programme with up to AUD 50 million in grants over 3 years for early- to mid-stage critical minerals projects.


Austria Hydrogen Strategy



Seven-pillar strategy for hydrogen production and use released in 2022, including focus on innovation. Pilot and demonstration projects can qualify for funding under the “Transformation of the Economy” programme (which has a total budget of EUR 100 million by 2026).


New National Strategy for Science, Technology and Innovation


Power generation and storage, renewables, hydrogen

In 2022-2023, Brazil launched new strategies for innovation in general, as well as specifically for power generation and storage under the Five-Year Strategic Innovation Plan (2023-2028) and for hydrogen with the National Hydrogen Programme.


Net Zero Accelerator Initiative

CAD 8 billion

Heavy industry, mining, hydrogen, CCUS, batteries

The Net Zero Accelerator (launched in 2020 under the Strategic Innovation Fund) can make up to CAD 8 billion in large-scale investments to decarbonise industrial sectors and boost new technology development. In 2022, measures to strengthen linkages with the private sector were put forward.


A Made-in-Canada Plan: Affordable Energy, Good Jobs, and a Growing Clean Economy

CAD 0.5 billion
Tax credits

Power, renewables, nuclear, grids, heating, industry, hydrogen, CCUS, batteries

In 2023, Canada put forward a plan to develop its domestic clean energy industry. The budget proposes a 30% tax credit, with higher credits for hydrogen and CCUS projects, and halves corporate income tax for makers of clean energy equipment. It counts an additional CAD 0.5 billion over 10 years to strengthen the Strategic Innovation Fund. 


Energy Innovation Program CCUS

CAD 320 million

Carbon capture, utilisation, transport and storage

Open calls for CCUS RD&D, with a total budget envelope of CAD 320 million over 7 years. In 2022-2023, project applications for capture, transport and storage technologies have been examined, with new opportunities for funding opening in Q3 2023.


National Energy R&D and Innovation Platform and Special Key R&D Projects


Hydrogen, nuclear, critical minerals, energy storage and smart grids, renewables, electric vehicles, and fossil fuels

In March 2023, the National Energy Administration introduced six energy R&D programmes, including nuclear and critical minerals. In June 2023, the Ministry of Science and Technology also published calls for seven key special R&D projects, focusing on hydrogen (with total budget of CNY 340 million), energy storage and smart grids, new energy vehicles, and renewables. Fossil fuels were also covered by these R&D project calls.


14th Five-Year Plan for New Energy Storage Development


Energy storage

A national innovation platform is proposed to unite university and industry R&D efforts to accelerate new energy storage technology development and commercialisation by 2030, complemented by new provincial policies such as in Guangdong and Inner Mongolia.


Green Tax Reform

DKK 7 billion

Cross-cutting (e.g. clean energy, environment, agriculture, fishery)

Aims to tax industrial companies based on CO2 emissions, and foster investments in green technology projects across the economy. In addition to a variety of tax instruments, it includes relief for firms investing in R&D and innovation.


France 2030for Clean Energy Innovation and for Industry

EUR 2.6 billion

Renewables, advanced and small modular reactors, industry

As part of its post-Covid recovery package, France allocated higher budgets to technology innovation and development in renewables (e.g. solar PV, floating wind, renewables integration) as well as advanced and small modular nuclear, with EUR 1 billion for each area. In addition, EUR 610 million were allocated to clean technology innovation in heavy industry.


Energy-Climate Fund for Batteries “Made in Germany”

EUR 3 billion


Up to EUR 3 billion allocated to develop domestic battery supply chains, an expansion of existing plans to support battery innovation and production. More than EUR 150 million announced in December 2022 for battery research projects, including for digitalisation and recycling techniques.


Recovery and Resilience Plan

EUR 6 billion

Renewables, hydrogen, batteries and electric vehicles

As part of its post-Covid recovery package, Italy allocated budgets of nearly EUR 24 billion to clean energy, including for technology development and innovation. This includes EUR 680 million for renewables; EUR 3.2 billion for hydrogen including applications in hard-to-abate sectors; and EUR 2 billion to foster Italian industrial leadership in clean energy, with specific support of EUR 250 million for start-ups.


National Green Hydrogen Mission

INR 19 billion


In late 2022 India advanced a plan for hydrogen and strategic innovation priorities, including about USD 50 million for R&D and another USD 180 million for pilot projects.


Green Technologies of Excellence

JPY 50 billion

Batteries, hydrogen, biomanufacturing

To support carbon neutrality by 2050 objectives, Japan’s Science and Technology Agency opened calls for R&D proposals in May 2023 to support research projects through public grants in battery storage (JPY 17 billion), hydrogen (JPY 17.5 billion) and biomanufacturing (JPY 12 billion). The Agency will also support basic research.


Plutonium Utilization Plan (2023)

JPY 67 billion

Nuclear power

Japan’s Atomic Energy Agency is pushing basic R&D on reactors (JPY 17 billion) as well as treatment technology of spent fuels and plutonium stabilisation studies (JPY 50 billion).


Strategy for Future Hydrogen Technologies


Hydrogen technologies

As part of the Strategy for Fostering Hydrogen Industry (2022-2030), to secure its global competitiveness, Korea is strengthening support for innovation and local supply chains across all hydrogen technology areas (e.g. production, infrastructure, use). In addition, the Hydrogen Fund set up by corporates in 2021 now aims to invest KRW 500 million of public-private budgets to develop core hydrogen technologies.


6th Comprehensive Plan for Nuclear Energy


Nuclear power

This plan brings back nuclear energy as a low-emission energy source to support net zero targets, with focus on managing spent fuel, nuclear decommissioning, and small modular reactors.


Green Industrial Initiative

NOK 2.5 billion
(in 2022)

Offshore wind, hydrogen, batteries, maritime sector, CO2 management, industry, forestry 

The government last updated its Action Plan for 2030 Climate Target in October 2022. The green industry boost in 2022 provided wide-ranging support for innovation, such as through NOK 600 million for loans to industry, NOK 900 million in grants, an additional NOK 325 million for CCUS, and NOK 500 million for equity investments in innovative companies.

United Kingdom

UK Net Zero Research and Innovation Framework: Delivery Plan 2022 to 2025

GBP 4.5 billion

Transport, power, industry, hydrogen, CCUS, buildings

Research and innovation programmes across net zero areas, including in low-carbon transport (GBP 1.9 billion), power (GBP 1.2 billion), hydrogen and industry (GBP 600 million), heat and buildings (GBP 250 million), and CCUS and removal of greenhouse gas (GBP 100 million). See also the list of new and recent commitments and the recent Critical Minerals Strategy (2023).

United Kingdom

Advanced Nuclear Technologies
(part of the UK Net Zero Strategy)

GBP 500 million

Advanced and small modular nuclear reactors

As part of the net zero strategy, stronger support for nuclear technology development, such as through the Advanced Nuclear Fund (GBP 215 million for small modular reactors and GBP 170 million for basic R&D) and the new Future Nuclear Enabling Fund (GBP 120 million).


ETP Clean Energy Technology Guide

This interactive database includes over 500 individual technology designs and components across the whole energy system that contribute to achieving the goal of net-zero emissions.