Research and development support

Current status of implementation and existing gaps

Innovation in batteries, for instance lithium ferrophosphate, lithium manganese iron phosphate, and sodium-ion batteries, can alleviate potential supply chain bottlenecks. Governments can help identify relevant technologies and provide regulatory and financial support to boost research and development.

Examples and initiatives

The Faraday Battery Challenge, supported by the UK government, aims to support the commercialisation of innovative battery technology.

Current status of implementation and existing gaps

Research and development for low-carbon shipping includes support for new technologies, safety, fuel availability and infrastructure and addresses regulatory and storage challenges. Efforts are needed to accelerate the demonstration, commercialisation and adoption of zero-carbon fuels and propulsion systems.

Examples and initiatives

The Clean Maritime Demonstration Competition is a multi-year research and development support platform from the UK government to promote the demonstration and commercialisation of low-carbon shipping technology (UK Department for Transport and Innovate UK, 2025).

Current status of implementation and existing gaps

Considerable progress has been made towards certifying and commercialising different SAF production pathways and testing hydrogen and electric propulsion systems. However, new propulsion development requires innovative aircraft design concepts, necessitating research and development support. Research and development support is also needed to convert different biomass into biofuels using the bio-Fischer Tropsch process.

Examples and initiatives

Velocys has announced that its bio-Fischer Tropsch process will receive an SAF producer tax and a carbon sequestration tax under the Individual Retirement Account. The project intends to demonstrate biofuel synthesis using woody biomass feedstock (Velocys, 2021).

Under an Aerospace Technology Institute programme, the UK government pledged GBP 218 million of funding for research and development projects to help develop low-carbon aviation technologies (UK Department for Business and Trade and Nusrat Ghani MP, 2023).

Current status of implementation and existing gaps

Most of the technologies needed for decarbonising the steel sector are close to, or are technologically mature However, innovation and research efforts are still needed to commercialise emerging technologies, especially those based on direct electrification. On this front, public-private partnerships are emerging to allocate funds to support research efforts and investment in pilot projects.

Examples and initiatives

Examples of public support schemes for promoting research and development include the EU Clean Steel Partnership, Japan’s Green Innovation Fund, and the UK’s steel strategy.

Current status of implementation and existing gaps

Most of the technologies needed for decarbonising the chemical and petrochemical sector are available commercially, but innovation and research efforts are still needed to commercialise some of the emerging technologies, particularly those based on direct electrification.

Examples and initiatives

The German government provided EUR 15 million in funding to the e-cracker project by BASF, SABIC and Linde (KEI, n.d.)

The public-private partnership SPIRE platform de-risks early-stage demonstration projects for low-carbon production technologies.

Current status of implementation and existing gaps

The cement industry is leveraging public and private investments for research and development, with several policies aimed at supporting large-scale innovation and decarbonisation projects. However, many projects struggle to move from demonstration to full-scale deployment due to the financial and regulatory uncertainties (IEA, 2025c).

Examples and initiatives

The EU Innovation Fund and the Processes4Planet initiative under Horizon Europe are notable programmes supporting low-carbon industrial transformation (IEA, 2025c).