BRUSSELS, Belgium / EuroWire.IO / – European Commission has approved 77 projects focused on net-zero technologies, granting them a total of €3.4 billion from the Innovation Fund. Announced on October 19, the fund’s net-zero call resulted in allocations funded by revenues from the EU Emissions Trading System. These projects span 23 nations within the European Economic Area and encompass a diverse array of clean industrial innovations.
The Commission projects that these initiatives could prevent approximately 290 million tonnes of carbon dioxide equivalent emissions in their first decade. This is equivalent 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 enhancing energy independence and security. Contributing to the EU’s climate neutrality target for 2050, these investments are vital.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, stated that the selected projects demonstrate how European innovators are translating climate goals into industrial advancements. He emphasized that reinvesting revenues from the carbon market supports the commercialization of clean technologies. The call, launched in December 2025, attracted 358 applications requesting €17.5 billion, vastly exceeding the €2.9 billion budget. All five categories of the call were oversubscribed. The Innovation Fund ranks among the world’s largest programs supporting innovative low-carbon technologies.
Funding primarily directed toward large-scale and manufacturing initiatives
Twelve large-scale projects requested approximately €1.58 billion, representing the largest portion of the funds. 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 roughly €124 million. Furthermore, 16 pilot projects aimed for around €394 million. These projects span sectors including energy-intensive industries, renewable energy, energy storage, and net-zero mobility, covering all five categories.
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 proposals focus on processing and recycling critical raw materials like rare earth magnets and batteries. Other initiatives explore advanced alternative fuels and industrial carbon management. Previously, the fund supported clean industry projects.
Funding agreements to be finalized by early 2027
While 84 projects passed evaluation, they did not secure funding within the current budget. These, along with the 77 selected projects, will receive the STEP Seal quality label to facilitate additional financial support. Additionally, 160 proposals remain eligible for project development aid from the European Investment Bank. Expert assessments focused on emissions reduction, innovation, maturity, replicability, and cost efficiency. The seal is part of the Strategic Technologies for Europe Platform.
The chosen project promoters are now preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency, with results expected in the first quarter of 2027. The upcoming Innovation Fund calls are scheduled to open in early December 2026, including a €1 billion initiative focused on clean-tech manufacturing. The fund also manages hydrogen and industrial heat auctions. Its current portfolio comprises approximately 320 projects with nearly €17 billion committed.