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. These funds are derived from revenues generated through the EU Emissions Trading System. The selected initiatives span 23 countries within the European Economic Area and encompass a broad spectrum of clean industrial innovations.
It is estimated by the Commission that these projects could prevent approximately 290 million tonnes of carbon dioxide equivalent emissions during their initial decade of operation. This amounts to about one tonne every second across ten years. The initiatives are expected to bolster Europe’s leadership and competitiveness in clean technology sectors while also advancing energy independence and security. This funding aligns with the EU’s objective of achieving climate neutrality by 2050.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, stated that these projects exemplify how European innovators are transforming climate commitments into industrial leadership. He emphasized that reinvesting revenues from carbon markets facilitates bringing clean technologies to market. The call, launched in December 2025, attracted 358 applications requesting a total of €17.5 billion, against a funding pool of €2.9 billion. All five categories within the call experienced oversubscription. The Innovation Fund ranks among the world’s largest programs financing pioneering low-carbon innovations.
Funding prioritizes large-scale and manufacturing initiatives
Twelve large-scale projects sought approximately €1.58 billion, representing the largest share of the available funds. An additional 12 projects in clean-tech manufacturing requested nearly €895 million. Seventeen medium-scale projects, valued at about €458 million, were also selected. Furthermore, 20 small-scale projects requested around €124 million, while 16 pilot projects aimed for roughly €394 million. These projects cover sectors including energy-intensive industries, renewable energy, storage solutions, and net-zero mobility. All five thematic areas comprise the entire portfolio of 77 selected initiatives.
For the first time, the Innovation Fund will support a project involving a small modular nuclear reactor. It will also finance its inaugural direct air capture and storage project for carbon. Six projects concentrate on processing and recycling critical raw materials such as rare earth magnets and batteries. Other selected projects focus on developing advanced alternative fuels and industrial carbon management methods. Previously, the Commission provided backing for clean industry projects through the same funding mechanism.
Grant agreements expected in early 2027
In addition, 84 projects passed the evaluation phase but could not be funded due to budget limitations. These projects, along with the 77 selected, will receive the STEP Seal quality label to assist in attracting further financing. Moreover, 160 proposals remain eligible for project development support from the European Investment Bank. Experts assessed the submissions based on criteria including emissions reduction, innovation potential, maturity, replicability, and cost efficiency. The seal is part of the Strategic Technologies for Europe Platform.
Currently, the selected project promoters are preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The Commission anticipates announcing the outcomes 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 dedicated to clean-tech manufacturing. The fund also manages hydrogen and industrial heat auctions. Its portfolio now encompasses roughly 320 projects with nearly €17 billion committed.