BRUSSELS, Belgium / EuroWire.IO / – The European Commission has awarded €3.4 billion in funding from the Innovation Fund to 77 projects focused on achieving net-zero emissions. The announcement of the fund’s net-zero technologies call results was made on October 19. Funds originate from revenues generated by the EU Emissions Trading System. These projects are distributed across 23 countries within the European Economic Area and encompass a broad spectrum of clean industrial innovations.
According to the Commission, these initiatives are projected to prevent approximately 290 million tonnes of carbon dioxide equivalent emissions during their initial decade of operation. This amounts to roughly one tonne every second over ten years. The projects aim to enhance Europe’s industrial leadership and competitiveness in clean technology sectors, while also bolstering energy independence and security. This funding aligns with the EU’s ambition to reach climate neutrality by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, highlighted that these projects exemplify European innovators transforming climate goals into industrial dominance. He emphasized that reinvesting carbon market revenues supports companies in bringing clean technologies to market. The call, launched in December 2025, attracted 358 applications requesting €17.5 billion, against an available budget of €2.9 billion. All five categories of the call experienced oversubscription. The Innovation Fund ranks among the world’s largest programs for funding innovative low-carbon technologies.
Funding predominantly targets large-scale and manufacturing projects
Twelve large-scale projects applied for approximately €1.58 billion, representing the largest portion of the allocated funds. An additional 12 projects in clean-tech manufacturing sought nearly €895 million. Seventeen medium-scale projects were selected, valued at about €458 million, while twenty small-scale projects requested around €124 million. Sixteen pilot initiatives aimed for roughly €394 million. The portfolio encompasses energy-intensive industries, renewable energy, energy storage, and net-zero mobility, with all five topics accounting for the entire 77 projects selected.
For the first time, the Innovation Fund will support a small modular nuclear reactor project, along with its inaugural direct air carbon capture and storage project. Six projects focus on the processing and recycling of critical raw materials, including rare earth permanent magnets and batteries. Other initiatives involve advanced alternative fuels and industrial carbon management. Previously, the Commission has backed clean industry projects through the same fund.
Grant agreements anticipated in early 2027
A total of 84 additional projects passed the evaluation process but did not secure funding due to budget constraints. These projects, along with the 77 selected, will receive the STEP Seal quality label to facilitate access to other financing options. Furthermore, 160 proposals remain eligible for project development assistance from the European Investment Bank. Independent experts assessed applications based on emissions reduction potential, innovation level, maturity, replicability, and cost-effectiveness. The seal is part of the Strategic Technologies for Europe Platform.
The chosen project promoters are now working towards finalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The Commission plans to publish the results of this process in the first quarter of 2027. The upcoming calls for the Innovation Fund are scheduled to open in early December 2026, featuring a €1 billion clean-tech manufacturing topic. Additionally, the fund manages hydrogen and industrial heat auctions. Currently, the portfolio comprises around 320 projects with nearly €17 billion committed.