The West Midlands Regional Innovation Centre is funded by Climate-KIC, Europe's largest public-private partnership focused on tackling climate change.
The hub will receive in excess of €1m (£822,000) of funding each year, spread across a number of local initiatives.
Innovation Birmingham is creating five jobs to run the centre. Katharine Fuller has been recruited as senior project manager for EU projects to lead the new team. She joins from Birmingham City University where she was EU funding manager.
Dr David Hardman, chief executive of Innovation Birmingham, said: "Since the closure of Advantage West Midlands, we have been lobbying our European partners to increase the amount of funding for climate change initiatives across the West Midlands.
"We are delighted to have secured over €1m per annum to allocate across a number of low carbon projects, which will support the work of organisations, professionals and students."
Fuller added that the funding secured was a reflection of the rapid growth of the region's sustainable energy market.
The West Midlands Regional Innovation Centre is one of six across Europe which are working to develop the low carbon economy within their regions. The other centres are located in Valencia in Spain, Emilia Romagna in Italy, Hessen in Germany, Lower Silesia in Poland and in central Hungary.