BRUSSELS, Belgium / EuroWire.IO / – The European Commission has designated 77 projects focused on achieving net-zero emissions to receive a total of €3.4 billion in funding from the Innovation Fund. The announcement of the results for the fund’s call on net-zero technologies was made on October 19. The funding originates from revenues generated by the EU Emissions Trading System. These projects are geographically distributed across 23 countries within the European Economic Area and encompass a broad spectrum of sustainable industrial technologies.
According to the Commission, these initiatives could potentially prevent approximately 290 million tonnes of carbon dioxide equivalent emissions in their first decade of operation, which translates to about one tonne every second over ten years. The projects aim to bolster Europe’s industrial leadership and competitiveness in clean technology sectors, while also promoting energy independence and security. This funding aligns with the EU’s target to reach climate neutrality by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero, and Clean Growth, highlighted that the selected projects exemplify how European innovators are transforming climate ambitions into industrial dominance. He emphasized that reinvesting revenues from the carbon market supports companies in bringing clean technologies to market. The call, launched in December 2025, attracted 358 applications requesting a total of €17.5 billion, well beyond the available €2.9 billion budget. All five thematic areas of the call experienced oversubscription. The Innovation Fund stands as one of the world’s largest programs dedicated to financing innovative low-carbon technologies.
Major projects in manufacturing and large-scale deployment dominate funding allocations
Twelve large-scale projects sought approximately €1.58 billion, representing the largest share of the funding pool. An additional 12 projects in clean-tech manufacturing requested nearly €895 million. The medium-scale category approved 17 projects valued at about €458 million. Smaller projects, classified as small-scale, requested roughly €124 million across 20 initiatives. Sixteen pilot projects aimed for around €394 million. These projects span sectors such as energy-intensive industries, renewable energy, energy storage, and net-zero mobility, collectively covering all five thematic areas of the call and contributing to the total of 77 selected initiatives.
For the first time, the Innovation Fund will support a small modular nuclear reactor project and will fund 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 selected projects involve the development of advanced alternative fuels and industrial carbon management solutions. Previously, the Commission has also endorsed clean industry projects under the same fund.
Anticipated grant agreements set for early 2027
A further 84 projects advanced through the evaluation process but are ineligible for funding due to budget constraints. These projects, alongside the 77 chosen ones, will receive the STEP Seal quality label, assisting them in attracting additional financing. Additionally, 160 proposals remain eligible for project development support from the European Investment Bank. Independent experts assessed submissions based on emissions reduction potential, innovation, technological maturity, replicability, and cost efficiency. The seal forms part of the Strategic Technologies for Europe Platform.
The selected project promoters are now in the process of negotiating grant agreements with the European Climate, Infrastructure and Environment Executive Agency, with the European Commission expecting to finalize the results in the first quarter of 2027. The next rounds of the Innovation Fund are scheduled to open in early December 2026, including a €1 billion clean-tech manufacturing focus. The fund also manages hydrogen and industrial heat auctions. Currently, the fund’s portfolio comprises approximately 320 projects with nearly €17 billion committed.