BRUSSELS, Belgium / EuroWire.IO / – The European Commission has announced the selection of 77 initiatives focused on net-zero technologies to receive a total of €3.4 billion from the Innovation Fund. This announcement was made on October 19, and the funding originates from revenues generated by the EU Emissions Trading System. These projects are distributed across 23 countries within the European Economic Area and encompass a diverse array of clean industrial innovations.
The Commission projects that, over their initial decade of operation, these initiatives could prevent approximately 290 million tonnes of carbon dioxide equivalent emissions. This equates to roughly one tonne every second during that period. The selected projects aim to bolster Europe’s position as a leader in clean technology and enhance its competitiveness. Additionally, they are expected to promote energy independence and security, contributing to the EU’s objective of achieving climate neutrality by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, highlighted that these projects exemplify how European innovators are translating climate ambitions into industrial leadership. He emphasized that reinvesting revenues from the carbon market supports companies in bringing clean technologies to market. The call, launched in December 2025, received 358 applications requesting a total of €17.5 billion, significantly surpassing the available budget of €2.9 billion. All five areas covered by the call were oversubscribed. The Innovation Fund remains one of the largest global programmes dedicated to funding innovative low-carbon technologies.
Major projects in scale and manufacturing secure most funding
Twelve large-scale initiatives requested approximately €1.58 billion, representing the largest share of the total funds. An additional 12 projects in clean-tech manufacturing sought nearly €895 million. The medium-scale category selected 17 projects with a combined value of around €458 million. Twenty smaller-scale projects requested roughly €124 million, while 16 pilot projects aimed for about €394 million. These projects span industries with high energy demands, renewable energy sources, energy storage solutions, and net-zero mobility. All five categories together encompass the entire set of 77 chosen initiatives.
For the first time, the Innovation Fund will support a project involving a small modular nuclear reactor, along with its inaugural direct air carbon capture and storage project. Six initiatives focus on processing and recycling critical raw materials, including rare earth permanent magnets and batteries. Other approved projects involve advanced alternative fuels and industrial carbon management. The European Commission has previously backed clean industry projects through the same fund.
Grant agreements anticipated in early 2027
A further 84 projects cleared evaluation but could not be funded due to budget constraints. Both these projects and the 77 selected will receive the STEP Seal quality label, aiding in attracting additional financing. Additionally, 160 proposals remain eligible for project development assistance from the European Investment Bank. Independent experts assessed submissions based on emission 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, with the European Commission expecting to announce results in the first quarter of 2027. The upcoming calls for the Innovation Fund are scheduled to open in early December 2026, including a €1 billion focus on clean-tech manufacturing. The fund also manages hydrogen and industrial heat auctions. Its current portfolio comprises roughly 320 projects with nearly €17 billion committed.