BRUSSELS, Belgium / EuroWire.IO / – The European Commission has designated 77 initiatives focused on net-zero technologies to receive €3.4 billion in funding from the Innovation Fund. The announcement of the fund’s net-zero technologies call results was made on October 19. This funding source derives from revenues generated by the EU Emissions Trading System. The selected projects span 23 countries within the European Economic Area and encompass a broad spectrum of clean industrial solutions.
The Commission projects that these initiatives could prevent approximately 290 million tonnes of carbon dioxide equivalent emissions over their initial decade of operation. This amounts to about one tonne every second over ten years. These projects aim to bolster Europe’s leadership in clean technology and enhance its industrial competitiveness. Additionally, they are expected to promote energy independence and security. The funding supports 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 dominance. He emphasized that reinvesting revenues from carbon markets assists companies in bringing clean technologies to 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 thematic areas of the call experienced oversubscription. The Innovation Fund is recognized as one of the globe’s largest programs supporting innovative low-carbon solutions.
Funding primarily directed towards large-scale and manufacturing initiatives
Twelve large-scale projects sought approximately €1.58 billion, representing the largest portion of the allocated funds. An additional 12 projects in clean-tech manufacturing requested nearly €895 million. The medium-scale category selected 17 projects valued around €458 million, while 20 small-scale projects aimed for roughly €124 million. Furthermore, 16 pilot projects sought a combined total of about €394 million. The portfolio covers critical sectors such as energy-intensive industries, renewable energy, energy storage, and net-zero mobility. Collectively, these five categories account for all 77 chosen projects.
For the first time, the Innovation Fund will support a small modular nuclear reactor project and its inaugural direct air carbon capture and storage initiative. Six projects focus on processing and recycling critical raw materials, including rare earth permanent magnets and batteries. Additional selected initiatives involve advanced alternative fuels and industrial carbon management. The European Commission has previously funded clean industry projects through the same program.
Expected grant agreements in early 2027
Out of the evaluated proposals, an additional 84 projects passed the assessment but could not be financed due to budget constraints. These projects, along with the 77 selected ones, will receive the STEP Seal quality label, aiding their efforts to secure further funding. Another 160 proposals remain eligible for project development support from the European Investment Bank. Independent experts assessed submissions based on emissions reduction potential, innovation, maturity, replicability, and cost-effectiveness. The seal is part of the Strategic Technologies for Europe Platform.
The winning proponents are currently preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission anticipates revealing the outcomes of this process in the first quarter of 2027. Future calls for the Innovation Fund are scheduled to open in early December 2026, including a €1 billion funding opportunity for clean-tech manufacturing. The fund also manages hydrogen and industrial heat auctions. Its current portfolio features approximately 320 projects with nearly €17 billion committed.