BRUSSELS, Belgium / EuroWire.IO / – The European Commission has awarded funding totaling €3.4 billion to 77 projects focused on achieving net-zero emissions, supported by the Innovation Fund. The announcement of these results, stemming from the fund’s call for net-zero technologies, was made on October 19. This capital is sourced from revenues generated through the EU Emissions Trading System. The selected projects are distributed across 23 nations within the European Economic Area and encompass a broad spectrum of sustainable industrial technologies.
It is estimated by the Commission that these initiatives could prevent approximately 290 million tonnes of carbon dioxide equivalent emissions within their initial decade of operation. This translates to roughly one tonne every second over ten years. These projects aim to bolster Europe’s industrial supremacy and competitive edge in the realm of clean technology, while also enhancing energy independence and security. The funding aligns with the EU’s objective of reaching climate neutrality by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, emphasized that the projects demonstrate how European innovators are transforming climate ambitions into industrial dominance. He highlighted that reinvesting revenues from the carbon market assists companies in bringing clean technologies to market. The call, launched in December 2025, attracted 358 applications requesting a total of €17.5 billion, against an available budget of €2.9 billion. All five categories of the call experienced oversubscription. The Innovation Fund is among the world’s largest programs supporting innovative low-carbon solutions.
Major projects in manufacturing and large-scale initiatives secure most funding
Twelve large-scale initiatives requested approximately €1.58 billion, representing the largest portion of the funding pool. An additional 12 projects in clean-tech manufacturing sought nearly €895 million. Seventeen medium-scale projects, valued at around €458 million, were also selected, alongside 20 small-scale projects requesting about €124 million. Furthermore, 16 pilot projects aimed for roughly €394 million. The portfolio addresses sectors including energy-intensive industries, renewable energy, energy storage, and net-zero mobility. These five categories encompass all 77 projects chosen.
For the first time, the Innovation Fund will support a project involving a small modular nuclear reactor, as well as its inaugural direct air carbon capture and storage project. Six initiatives focus on processing and recycling critical raw materials, such as rare earth permanent magnets and batteries. Others involve the development of advanced alternative fuels and industrial carbon management solutions. Previously, the Commission has supported clean industry projects through the same fund.
Funding agreements anticipated in early 2027
A further 84 projects, which passed evaluation but could not be funded due to budget limitations, will receive the STEP Seal quality label to assist in attracting additional financing. An additional 160 proposals remain eligible for project development assistance from the European Investment Bank. Independent experts assessed the submissions based on criteria such as emissions reduction potential, innovation, maturity, replicability, and cost efficiency. The seal is part of the Strategic Technologies for Europe Platform.
Currently, the selected project promoters are preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The Commission expects to finalize these agreements by the first quarter of 2027. The upcoming calls for the Innovation Fund are scheduled to open in early December 2026, featuring a €1 billion focus on clean-tech manufacturing. The fund also manages hydrogen and industrial heat auctions. Its portfolio now encompasses around 320 projects with nearly €17 billion committed.