BRUSSELS, Belgium / EuroWire.IO / – The European Commission has approved funding for 77 projects focused on net-zero technologies, totaling €3.4 billion from the Innovation Fund. This announcement was made on October 19, after the Commission revealed the results of its call for net-zero innovations. The 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 environmentally friendly industrial technologies.
The Commission predicts that these initiatives could eliminate approximately 290 million tonnes of carbon dioxide equivalent within their first decade of operation. This amounts to about one tonne every second over ten years. The projects aim to reinforce Europe’s position as a leader in clean technology and bolster competitiveness. Additionally, they are designed to promote energy independence and security. The 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 the projects exemplify how European innovators are translating climate goals into industrial leadership. He emphasized that reinvesting revenues from the carbon market helps companies develop and deploy clean technologies. The call, initiated in December 2025, attracted 358 applications requesting a total of €17.5 billion, against a budget of €2.9 billion. All five categories within the call received more applications than available funds. The Innovation Fund remains one of the world’s largest initiatives supporting pioneering low-carbon solutions.
Major projects in manufacturing and large-scale initiatives dominate funding
Twelve large-scale projects requested around €1.58 billion, representing the largest portion of the available funding. An additional 12 projects in clean-tech manufacturing sought nearly €895 million. Seventeen medium-scale projects were chosen, with a combined value of approximately €458 million. Meanwhile, 20 smaller projects requested about €124 million, and 16 pilot projects aimed for around €394 million. These projects span sectors such as energy-intensive industries, renewable energy, energy storage, and net-zero mobility. All five categories collectively include the 77 selected initiatives.
For the first time, the Innovation Fund will support a small modular nuclear reactor project and its inaugural direct air capture and storage project for carbon. Six projects are dedicated to processing and recycling critical raw materials, like rare earth magnets and batteries. Other selected initiatives focus on advanced alternative fuels and industrial carbon management. The European Commission has previously endorsed clean industry projects through this same funding scheme.
Funding agreements anticipated in early 2027
A total of 84 additional projects passed the evaluation process but will not receive funding due to budget constraints. These projects, along with the 77 selected ones, will obtain the STEP Seal quality label to facilitate attracting further financing. Moreover, 160 proposals remain eligible for project development support from the European Investment Bank. Independent experts assessed submissions based on emissions reduction potential, innovation level, technological maturity, scalability, and cost-effectiveness. 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 European Commission expects to finalize and announce the results of this process in the first quarter of 2027. The next round of Innovation Fund calls is scheduled to open in early December 2026, including a €1 billion funding opportunity dedicated to clean-tech manufacturing. The fund also hosts hydrogen and industrial heat auctions. The portfolio now encompasses around 320 projects with nearly €17 billion committed in total.