BRUSSELS, Belgium / EuroWire.IO / – European Commission has designated 77 net-zero technology initiatives to receive €3.4 billion in support from the Innovation Fund. The agency announced the outcomes of its net-zero technologies call on October 19. This funding originates from revenues generated through the EU Emissions Trading System. These projects span 23 nations within the European Economic Area, representing diverse sectors of clean industrial technology.
According to the Commission, these initiatives could prevent roughly 290 million tonnes of carbon dioxide equivalent emissions over their initial decade of operation—equivalent to approximately one tonne every second for ten years. The projects are poised to enhance Europe’s leadership and competitiveness in clean tech industries. Additionally, they aim to bolster energy independence and security, aligning with the EU’s ambition for climate neutrality by 2050.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, highlighted that these projects demonstrate how European innovators are transforming climate commitments into industrial dominance. He emphasized that reinvesting revenues from carbon markets supports companies in bringing cutting-edge technologies to market. The call, launched in December 2025, attracted 358 applications requesting a total of €17.5 billion, despite a budget of only €2.9 billion. All five topics covered by the call received more applications than available funds. Notably, the Innovation Fund ranks among the world’s largest programs for financing innovative low-carbon solutions.
Funding predominantly targets large-scale and manufacturing initiatives
Among the projects, twelve large-scale proposals sought approximately €1.58 billion, representing the largest portion of the allocated funds. An additional twelve projects in clean-tech manufacturing requested nearly €895 million. The medium-scale category selected 17 initiatives valued at about €458 million, while twenty smaller projects asked for around €124 million. Sixteen pilot projects aimed to secure roughly €394 million. These projects encompass energy-intensive industries, renewable energy, energy storage, and net-zero mobility solutions. Collectively, the five categories comprise all 77 chosen initiatives.
For the first time, the Innovation Fund will finance a small modular nuclear reactor project, alongside its inaugural direct air carbon capture and storage endeavor. Six initiatives focus on processing and recycling critical raw materials, such as rare earth magnets and batteries. Other selected projects include advanced alternative fuels and strategies for industrial carbon management. The same fund has previously supported clean industry projects.
Funding agreements anticipated early in 2027
Another 84 projects advanced the evaluation process but could not be granted funding within the available budget. These initiatives, together with the 77 selected projects, will receive the STEP Seal quality label, which aims to attract further financing. Moreover, 160 additional proposals remain eligible for project development support from the European Investment Bank. Independent experts assessed submissions based on emission reduction potential, innovation level, maturity, replicability, and cost efficiency. The seal is part of the Strategic Technologies for Europe Platform.
The designated promoters are now preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The Commission anticipates revealing the results 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 clean-tech manufacturing initiative. The fund also manages hydrogen and industrial heat auctions. Its current portfolio encompasses approximately 320 projects with nearly €17 billion committed.