BRUSSELS, Belgium / EuroWire.IO / – The European Commission has allocated €3.4 billion from the Innovation Fund to support 77 projects focused on net-zero technologies. The announcement of the fund’s net-zero technologies call results was made on October 19, with the funding originating from revenues generated by the EU Emissions Trading System. These projects are distributed across 23 nations within the European Economic Area and encompass a diverse array of clean industrial innovations.
According to the Commission’s estimates, these initiatives could prevent approximately 290 million tonnes of carbon dioxide equivalent emissions during their first decade of operation, which translates to about one tonne every second over ten years. The projects aim to bolster Europe’s leadership and competitiveness in clean technology sectors while enhancing energy independence and security. This financial backing aligns with the EU’s commitment to achieving climate neutrality by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, emphasized that these projects exemplify European innovators transforming climate ambitions into industrial dominance. He added that reinvesting revenues from the carbon market supports companies in commercializing clean technologies. The call, launched in December 2025, attracted 358 applications requesting €17.5 billion, far exceeding the available €2.9 billion budget. All five topics covered by the call were oversubscribed. The Innovation Fund ranks among the world’s largest programs dedicated to financing innovative low-carbon solutions.
Funding predominantly targets large-scale and manufacturing projects
Twelve large-scale initiatives sought roughly €1.58 billion, constituting the largest portion of the total funding. An additional 12 projects in clean-tech manufacturing applied for nearly €895 million. Seventeen medium-scale projects, valued at about €458 million, were also chosen. Moreover, twenty small-scale projects requested around €124 million, and 16 pilot projects aimed for approximately €394 million. These projects span sectors including energy-intensive industries, renewable energy, energy storage, and net-zero mobility. All five categories are represented within the 77 selected initiatives.
For the first time, the Innovation Fund will support a small modular nuclear reactor project, alongside its inaugural direct air carbon capture and storage initiative. Six projects focus on processing and recycling critical raw materials, such as rare earth magnets and batteries, with other selected projects concentrating on advanced alternative fuels and industrial carbon management. Previously, the European Commission backed clean industry projects using the same funding source.
Grant agreements anticipated in early 2027
A further 84 projects successfully completed the evaluation process but could not secure funding within the current budget constraints. These projects, along with the 77 selected ones, will be awarded the STEP Seal quality label to facilitate attracting additional funding. An additional 160 proposals remain eligible for project development support from the European Investment Bank. The evaluation, conducted by independent experts, considered factors such as emissions reduction potential, innovation, maturity, replicability, and cost-effectiveness. The seal is a component 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 finalize results in the first quarter of 2027. The next calls for proposals under the Innovation Fund are scheduled to open in early December 2026, including a €1 billion initiative for clean-tech manufacturing. Additionally, the fund manages hydrogen and industrial heat auctions, and currently supports approximately 320 projects with nearly €17 billion committed.