BRUSSELS, Belgium / EuroWire.IO / – A total of 77 initiatives in clean technology across Europe will benefit from €3.4 billion allocated by the Innovation Fund of the EU. The European Commission revealed the chosen projects on Monday, October 19, as part of its call for net-zero technology innovations. The funding is sourced from revenues generated through the EU Emissions Trading System. These projects are spread across 23 countries within the European Economic Area, encompassing everything from industrial facilities to smaller pilot schemes.
The Commission estimates that these projects could cut approximately 290 million tonnes of carbon dioxide equivalent in their first ten years of operation. This translates to roughly one tonne each second over the decade. The investments aim to bolster Europe’s industrial competitiveness in clean technology sectors, while also advancing energy independence and security across the continent. Contributing to the EU’s goal of achieving climate neutrality by 2050, these initiatives play a key role in the broader climate strategy.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, emphasized that European innovators are transforming climate ambitions into industrial leadership. He highlighted that reinvesting emissions trading revenues into clean tech helps companies enter the market and reduce emissions. The competition for funding was fierce. The call, launched in December 2025, attracted 358 applications requesting €17.5 billion, with a total budget of €2.9 billion available. Each of the five focus areas of the call received more applications than the funds could accommodate, indicating high demand.
Nuclear innovation and direct air capture projects included in the portfolio
Among the selected projects is the Innovation Fund’s inaugural small modular reactor initiative, reflecting the EU’s increasing interest in nuclear power. It also features the first direct air carbon capture and storage project to receive support. Six projects focus on the processing and recycling of critical raw materials, including efforts related to rare earth permanent magnets and batteries. These projects align with the Net-Zero Industry Act and the RESourceEU Action Plan.
The portfolio further includes initiatives targeting energy-intensive industries, renewable energy, energy storage, net-zero mobility, advanced alternative fuels, and industrial carbon management. In terms of scope, 12 large-scale projects requested around €1.58 billion, while 12 manufacturing initiatives sought nearly €895 million. Seventeen medium-sized projects aimed for approximately €458 million, with 20 smaller projects requesting about €124 million, and 16 pilot schemes seeking roughly €394 million. The largest share of requested funding was allocated to the large-scale projects category.
Project quality recognition for proposals without funding
An additional 84 proposals met the evaluation criteria but did not secure grants due to budget limitations. These will receive the STEP Seal, alongside the 77 successful projects, to assist them in obtaining funding from alternative sources. Moreover, 160 other proposals can apply for project development support from the European Investment Bank. The current Innovation Fund portfolio now comprises approximately 320 projects with nearly €17 billion committed.
Project organizers are in the process of finalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission anticipates announcing the results in the first quarter of 2027. Future calls for proposals from the Innovation Fund are expected to commence in early December 2026, including a €1 billion funding opportunity dedicated to clean-tech manufacturing. The fund is backed by an estimated €40 billion from carbon market revenues generated between 2020 and 2030. Independent experts evaluated each application based on its potential for emissions reductions, innovation, maturity, and cost efficiency.