BRUSSELS, Belgium / EuroWire.IO / – The European Commission has designated 77 initiatives focused on net-zero technology to receive €3.4 billion from the Innovation Fund. On October 19, the Commission revealed the outcomes of the fund’s call for net-zero innovations. These funds are derived from earnings generated by the EU Emissions Trading System. The chosen projects span 23 nations within the European Economic Area and encompass a broad spectrum of clean industrial solutions.
It is estimated by the Commission that these projects could eliminate approximately 290 million tonnes of carbon dioxide equivalent within their initial decade of operation. This corresponds to roughly one tonne every second for ten years. The initiatives are projected to bolster Europe’s leadership and global competitiveness in clean technology sectors, while also enhancing energy independence and security. The allocated funding supports the EU’s objective of reaching climate neutrality by 2050.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, stated that these projects demonstrate how European innovators are translating climate goals into industrial leadership. He emphasized that reinvesting revenues from the carbon market assists companies in bringing clean technologies to market readiness. The call, which was launched in December 2025, attracted 358 applications. The applicants requested a total of €17.5 billion, whereas the available budget stood at €2.9 billion. Every one of the five thematic areas of the call received more proposals than available funding. The Innovation Fund ranks among the world’s largest programs supporting innovative low-carbon solutions.
Funding predominantly directed towards large-scale and manufacturing initiatives
Twelve projects classified as large-scale sought approximately €1.58 billion, making up the largest segment of the awarded funds. An additional 12 projects in clean-tech manufacturing requested nearly €895 million. Seventeen medium-scale projects, valued at around €458 million, were also selected. Furthermore, 20 small-scale initiatives asked for roughly €124 million, while 16 pilot projects aimed for about €394 million. These projects span sectors including energy-intensive industries, renewable energy, energy storage, and net-zero mobility. Collectively, all five categories account for the entire group of 77 projects.
For the first time ever, the Innovation Fund will support a project involving a small modular nuclear reactor. It will also fund its first direct air carbon capture and storage project. Additionally, six initiatives focus on processing and recycling critical raw materials such as rare earth magnets and batteries. Other selected projects include advanced alternative fuels and industrial carbon management. Previously, the Commission has supported clean industry projects through this same fund.
Funding agreements anticipated in early 2027
A total of 84 projects successfully passed the evaluation process but could not be funded due to budget limitations. These initiatives, together with the 77 selected projects, will be awarded the STEP Seal quality label, aiding in attracting additional financial support. An additional 160 proposals remain eligible for project development funding from the European Investment Bank. Independent experts assessed the applications based on emissions reduction potential, innovation level, maturity, replicability, and cost efficiency. The seal is part of the Strategic Technologies for Europe Platform.
The chosen project promoters are now preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The Commission expects to announce the outcomes of this process during the first quarter of 2027. The upcoming calls for the Innovation Fund are scheduled to open in early December 2026, including a €1 billion clean-tech manufacturing initiative. The fund also manages hydrogen and industrial heat auctions. Its current portfolio comprises approximately 320 projects with nearly €17 billion allocated.