Innovation – Energy System – IEA

Country

Policy

Funding

Technology areas

Australia

Critical Minerals Strategy 2023

AUD 100 million
(2022-2026)

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

Austria Hydrogen Strategy
(2022-2030)

n.a.

Hydrogen

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).

Brazil

New National Strategy for Science, Technology and Innovation

n.a.

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.

Canada

Net Zero Accelerator Initiative

CAD 8 billion
(2020-2030)

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.

Canada

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

CAD 0.5 billion
(2023-2033)
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. 

Canada

Energy Innovation Program CCUS

CAD 320 million
(2021-2028)

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.

China

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

n.a.

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.

China

14th Five-Year Plan for New Energy Storage Development

n.a.

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.

Denmark

Green Tax Reform

DKK 7 billion
(2023-2030)

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

France 2030for Clean Energy Innovation and for Industry

EUR 2.6 billion
(2022-2030)

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.

Germany

Energy-Climate Fund for Batteries “Made in Germany”

EUR 3 billion
(2022-2030)

Batteries

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.

Italy

Recovery and Resilience Plan

EUR 6 billion
(2021-2026)

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.

India

National Green Hydrogen Mission

INR 19 billion
(2023-2030)

Hydrogen

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.

Japan

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.

Japan

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).

Korea

Strategy for Future Hydrogen Technologies
(2022-2050)

n.a.

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.

Korea

6th Comprehensive Plan for Nuclear Energy
(2022-2026)

n.a.

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.

Norway

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
(2022-2025)

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
(2021-2030)

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).