BRUSSELS, Belgium / EuroWire.IO / – The European Commission announced that 77 net-zero technology initiatives will receive €3.4 billion from the Innovation Fund. The results of the fund’s call for net-zero technologies were revealed on October 19. These funds originate from revenues generated by the EU Emissions Trading System, with projects spanning 23 countries within the European Economic Area, encompassing a diverse array of clean industrial solutions.
According to the Commission’s estimates, these projects could prevent approximately 290 million tonnes of carbon dioxide equivalent emissions during their initial decade of operation, equating to roughly one tonne every second over ten years. The funding aims to bolster Europe’s leadership and competitiveness in clean technology sectors, while also advancing energy independence and security. Such initiatives align with the EU’s target of achieving climate neutrality by 2050.
Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra emphasized that these projects demonstrate how European innovators are translating climate ambitions into industrial leadership, highlighting that reinvesting revenues from carbon markets supports companies in bringing clean technologies to market. The call, launched in December 2025, attracted 358 applications requesting €17.5 billion, significantly surpassing the available budget of €2.9 billion. All five focus areas of the call were oversubscribed. The Innovation Fund remains one of the world’s largest funding programs dedicated to supporting innovative low-carbon technologies.
Major projects dominate funding allocation
Funding for twelve large-scale initiatives totaled approximately €1.58 billion, representing the largest share, while an additional 12 projects in clean-tech manufacturing sought nearly €895 million. Seventeen medium-scale projects valued at about €458 million were also selected, along with 20 small-scale projects requesting around €124 million. Furthermore, 16 pilot projects aimed for roughly €394 million. These projects span sectors such as energy-intensive industries, renewable energy, energy storage, and net-zero mobility, covering all five focus areas.
Notably, for the first time, the Innovation Fund will support a small modular nuclear reactor initiative and its inaugural direct air carbon capture and storage project. Six projects will focus on processing and recycling critical raw materials, including rare earth permanent magnets and batteries. Additional projects involve advanced alternative fuels and industrial carbon management. The Fund has previously supported clean industry projects through the same mechanism.
Funding agreements set for early 2027
While 84 projects passed evaluation, they could not secure funding within the current budget, but they and the 77 selected initiatives will be granted the STEP Seal quality label to help attract additional financing. An additional 160 proposals remain eligible for project development assistance from the European Investment Bank. These bids were evaluated by independent experts based on emissions reduction potential, innovation, maturity, replicability, and cost efficiency. The seal forms part of the Strategic Technologies for Europe Platform.
The chosen promoters are now preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency, with the European Commission expecting to announce the outcomes early in 2027. Upcoming calls for the Innovation Fund are scheduled to open in early December 2026, including a €1 billion clean-tech manufacturing topic. The fund also manages hydrogen and industrial heat auctions. Its current portfolio comprises around 320 projects with nearly €17 billion committed.