BRUSSELS, Belgium / EuroWire.IO / – European Commission has allocated funding to 77 innovative net-zero technology projects, totaling €3.4 billion, through the Innovation Fund. The announcement, made on October 19, detailed the results of the fund’s call for net-zero technologies. This financial support originates from revenues generated by the EU Emissions Trading System. The selected projects span 23 nations within the European Economic Area and encompass a broad spectrum of clean industrial technologies.
The Commission projects that these initiatives could prevent approximately 290 million tonnes of carbon dioxide equivalent emissions during their first decade of operation. That equates to roughly one tonne every second over ten years. The projects aim to bolster Europe’s leadership and competitiveness in clean technologies, enhance energy independence, and ensure security. Contributing to the EU’s climate neutrality target by 2050, this funding supports long-term environmental goals.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, highlighted that these projects demonstrate how European innovators are translating climate ambitions into industrial leadership. He emphasized that reinvesting revenues from the carbon market facilitates the introduction of clean technologies into the market. The call, launched in December 2025, attracted 358 applications requesting a total of €17.5 billion, against a budget of €2.9 billion. All five topics within the call received more applications than available funds. The Innovation Fund is recognized as one of the world’s largest programs dedicated to financing pioneering low-carbon technologies.
Funding Predominantly Supports Large-Scale and Manufacturing Initiatives
Among the projects, twelve large-scale initiatives sought approximately €1.58 billion, representing the largest share of the allocated funds. An additional twelve projects in clean-tech manufacturing applied for nearly €895 million. The medium-scale category saw 17 projects requesting about €458 million, while twenty small-scale efforts aimed for around €124 million. Sixteen pilot projects requested roughly €394 million. These projects encompass sectors such as energy-intensive industries, renewable energy, energy storage, and net-zero mobility, with all five categories comprising the entire portfolio of 77 selected projects.
For the first time, the Innovation Fund will back a project involving a small modular nuclear reactor, alongside its inaugural support for a direct air carbon capture and storage initiative. Additionally, six projects focus on processing and recycling critical raw materials like rare earth magnets and batteries. Other selected initiatives involve advanced alternative fuels and strategies for industrial carbon management. Previously, the Commission has supported clean industry projects through the same fund.
Anticipated Grant Agreements Set for Early 2027
In addition to the 77 projects selected, 84 others passed the evaluation phase but will not receive funding from the current budget. These projects, along with the selected ones, will be granted the STEP Seal quality label to support their efforts in attracting further financing. Moreover, 160 proposals remain eligible for project development assistance provided by the European Investment Bank. Independent experts assessed proposals based on their emissions reduction potential, innovation, maturity, replicability, and cost efficiency. The seal is a component of the Strategic Technologies for Europe Platform.
The promoters of the successful projects are now preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The Commission plans to announce the outcome of this process 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 initiative focused on clean-tech manufacturing. Additionally, the fund manages hydrogen and industrial heat auctions. Currently, the fund’s portfolio comprises approximately 320 projects with nearly €17 billion committed.