BRUSSELS, Belgium / EuroWire.IO / – Across Europe, seventy-seven projects focused on clean technology will receive a total of €3.4 billion from the Innovation Fund. The European Commission announced the selected projects on Monday, October 19, as part of the fund’s call for net-zero innovations. Funding is generated from the revenues of the EU Emissions Trading System. These initiatives are spread across 23 countries within the European Economic Area, encompassing everything from large industrial facilities to smaller pilot programs.
The European Commission estimates that these projects could reduce approximately 290 million tonnes of carbon dioxide equivalent emissions within their first decade of operation. This equates to roughly one tonne every second over ten years. The Commission emphasized that such investments will bolster Europe’s industrial competitiveness in clean technology sectors. Additionally, they are expected to enhance the bloc’s energy independence and security, contributing toward the EU’s goal of achieving climate neutrality by 2050.
Wopke Hoekstra, serving as the Commissioner for Climate, Net Zero and Clean Growth, highlighted that European innovators are transforming climate ambitions into industrial leadership. He explained that reinvesting emissions trading revenues into clean tech development aids companies in reaching markets and lowering their emissions. The competition for funding was fierce, with the call launched in December 2025 drawing 358 applications requesting a total of €17.5 billion. Meanwhile, the available budget was limited to €2.9 billion. All five topics within the call were oversubscribed.
Nuclear and Direct Air Capture Projects Included
Among the selected projects is the Innovation Fund’s inaugural small modular reactor initiative, reflecting the EU’s growing interest in nuclear power. It also features the first direct air capture and storage project to be supported. Six initiatives focus on the processing and recycling of critical raw materials, such as rare earth permanent magnets and batteries. These projects are aligned with the Net-Zero Industry Act and the RESourceEU Action Plan.
Additional projects cover sectors like energy-intensive industries, renewable energy, energy storage, net-zero mobility, innovative alternative fuels, and industrial carbon management. In terms of funding requests by category, 12 large-scale projects asked for approximately €1.58 billion, while 12 manufacturing projects sought nearly €895 million. Seventeen medium-scale initiatives requested around €458 million. Twenty smaller projects asked for roughly €124 million, and 16 pilot programs requested about €394 million. The largest share of requested funds was allocated to large-scale projects.
Projects Without Funding Receive Quality Certification
An additional 84 proposals fulfilled the evaluation criteria but did not secure grants due to budget constraints. These projects will receive the STEP Seal, alongside the 77 selected initiatives, to facilitate access to other funding sources. Furthermore, 160 other proposals are eligible to apply for project development support from the European Investment Bank. The current portfolio of the Innovation Fund now includes around 320 projects with nearly €17 billion committed.
Project sponsors are in the process of drafting grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission expects to disclose the final results in the first quarter of 2027. Upcoming calls for the Innovation Fund are anticipated to open in early December 2026, featuring a €1 billion funding opportunity dedicated to clean-tech manufacturing. The fund’s revenue stream is projected to reach approximately €40 billion from carbon market proceeds during 2020 to 2030. Each bid was independently assessed based on criteria such as emissions reduction potential, innovation level, maturity, and cost effectiveness.