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Calculating GHG emission avoidance for the Innovation Fund

Calculating GHG emission avoidance

Are you considering applying for the EU Innovation Fund (IF)? If so, you will be required to submit a calculation of the avoided Greenhouse Gas (GHG) emissions achieved by your innovation. This process can be challenging. If you’re struggling, Ecomatters can help you out. Whether you are focusing on a specific sector, or developing hybrid projects, our support will enable you to accurately quantify your potential GHG emission avoidance!

What is the EU Innovation Fund?

The IF stands as a crucial financial tool in the realm of climate policy, with a particular focus on energy and industry. Its primary objective is to introduce innovative solutions to the market, aiding in the decarbonisation of European industry and facilitating its transition climate neutrality, all while enhancing competitiveness. Within the EU, entities emitting greenhouse gases are mandated to offset their environmental impact through the Emissions Trading System (ETS). The revenue generated through the ETS is redirected into the Innovation Fund, cementing its position as one of the world’s foremost funding initiatives for pioneering low-carbon technologies.

The IF plays a crucial role in supporting projects across various sectors, including energy-intensive industries, carbon capture and utilization (CCU), carbon capture and storage (CCS), renewable energy, and energy storage.

Emission avoidance methodology

To ensure transparency and accountability in emission reduction efforts, the IF has established a clear methodology for calculating GHG emission avoidance. When applying for a grant from the Innovation Fund, it is essential to evaluate the life-cycle emissions of the proposed project. This involves comparing the emissions of a scenario incorporating the project, against a reference scenario where the project is not included.

The IF allows applicants to submit project applications for a single sector or you can integrate activities from multiple sectors creating a hybrid project. If a project generates revenues from a single product, selecting the corresponding sector is straightforward. However, for projects with multiple products, applicants must identify the ‘principal product(s)’ representing the project’s main aim and innovation. In cases where a product substitutes another with a different composition, the sector of the substituted product may be chosen. If multiple products are within the same sector, applicants can designate all, or some, of the products as ‘principal products’. This influences the outcome of the project’s relative GHG emission avoidance calculation.

The reference scenario encompasses alternative processes that deliver the same, or equivalent, functions as the principal products of the project. “Equivalent function” denotes either the same quantity of an identical product produced conventionally or, if the new product serves a distinct function, the conventional product fulfilling the same or similar function to the new product.

How can Ecomatters support

Our experts can help:

  • To define the ‘principal product(s)’ of your project
  • To determine a suitable reference scenario
  • By calculating emissions avoidance for projects with multiple products or for hybrid projects
  • Calculate absolute and relative GHG emissions avoidance for both your project and reference scenario

Want to know more? Schedule a call with one of our consultants. We will be happy to talk you through GHG emission avoidance calculations.

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Brienne Wiersema

Sustainability Consultant
Robert Jan Volders

Robert Jan Volders

Sustainability Consultant

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