The EU will spend up to €10bn ($11.37bn) supporting innovative low-carbon technologies in sectors such as renewables and energy storage over the next decade, said the European Commission.

The Innovation Fund – set to be one of the world’s largest funding programmes for climate action – will benefit from revenues from allowances sold under the EU’s Emissions Trading System (ETS) during the period 2020 to 2030.

The total amount realised from the sales depend on the carbon price, which is currently around €20 per tonne of CO2.

Any undisbursed revenues from the Innovation Fund’s predecessor, the NER 300 programme, will also be added to the new scheme.

The fund will fund big projects which can reduce emissions substantially in key sectors, but will also be open for small-scale projects with eligible costs under €7.5m which can benefit from simplified arrangements for application and selection.

“Less than three months after adopting our strategic vision for a climate neutral Europe by 2050, we are putting our money where our mouth is,” said European climate action and energy commissioner Miguel Arias Canete.

“Our objective is to keep building a modern, competitive and socially fair Paris-aligned economy for all Europeans,” he said. “For this to happen, we will need deployment of clean innovative technologies on an industrial scale.”

The Commission said it wants to ensure that Europe continues to be at the top of the league in high-value patents for clean energy technologies.