BRUSSELS, Belgium / EuroWire.IO / – A total of 77 clean technology initiatives across Europe are set to benefit from €3.4 billion provided by the Innovation Fund. The European Commission revealed the selected projects on Monday, October 19, as part of its call for net-zero technologies. These grants are funded through revenues generated by the EU Emissions Trading System. The projects span 23 countries within the European Economic Area and include a variety of initiatives from industrial facilities to smaller pilot schemes.
The Commission estimates that these projects could avoid approximately 290 million tonnes of carbon dioxide equivalent emissions within their first ten years of operation, averaging about one tonne per second over a decade. The investments are expected to boost Europe’s industrial competitiveness in clean technology sectors, while also advancing the bloc’s goals of energy independence and security. All efforts contribute toward achieving the EU’s climate neutrality target by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, stated that European innovators are translating climate ambitions into industrial leadership. He emphasized that reinvesting emissions trading revenues into clean technologies enables companies to bring innovations to market and reduce emissions. The competition for funding was fierce; the call, launched in December 2025, drew 358 applications requesting €17.5 billion, against an available budget of €2.9 billion. Each of the five topics addressed in the call received more applications than available funding.
Nuclear and direct air capture projects added to portfolio
Among the selected projects is the Innovation Fund’s inaugural small modular reactor initiative, reflecting the EU’s growing interest in nuclear power. Additionally, it includes the first direct air carbon capture and storage project to receive support. Six projects focus on processing and recycling critical raw materials, including efforts related to rare earth permanent magnets and batteries. These initiatives align with the Net-Zero Industry Act and the RESourceEU Action Plan.
Other funded projects target energy-intensive industries, renewable energy, energy storage, net-zero mobility, advanced alternative fuels, and industrial carbon management. In terms of funding requests, 12 large-scale projects sought about €1.58 billion, while 12 clean-tech manufacturing initiatives aimed for nearly €895 million. Seventeen medium-scale projects requested roughly €458 million, 20 smaller projects asked for approximately €124 million, and 16 pilot schemes sought around €394 million. The largest share of requested funding was allocated to large-scale projects.
Additional recognition for projects without funding
An extra 84 proposals fulfilled the evaluation criteria but did not receive grants due to budget constraints. These projects will be awarded the STEP Seal, helping them to attract funding from other sources. Furthermore, 160 other proposals are eligible to apply for project development assistance through the European Investment Bank. Currently, the Innovation Fund portfolio encompasses approximately 320 projects with nearly €17 billion committed.
Project sponsors are working on formalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission intends to announce the results in the first quarter of 2027. New calls for proposals are expected to be launched in early December 2026, including a €1 billion dedicated topic for clean-tech manufacturing. The fund, which relies on an estimated €40 billion from carbon market revenues between 2020 and 2030, was assessed by independent experts who reviewed each submission based on emissions reduction potential, innovation, maturity, and cost-effectiveness.