BRUSSELS, Belgium / EuroWire.IO / – A total of 77 clean technology initiatives across Europe are set to share €3.4 billion from the Innovation Fund. The European Commission revealed the selected projects on Monday, October 19, as part of the fund’s call for net-zero solutions. These grants are funded through revenues generated by the EU Emissions Trading System. The projects span 23 countries within the European Economic Area, ranging from large industrial plants to small pilot schemes.
The European Commission estimates that these initiatives could eliminate approximately 290 million tonnes of carbon dioxide equivalent within their first ten years of operation, averaging roughly one tonne per second over that period. The Commission emphasized that this investment will bolster Europe’s industrial competitiveness in clean technologies and is expected to enhance energy independence and security across the bloc. Contributing to the EU’s goal of achieving climate neutrality by 2050, these projects play a crucial role.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, highlighted that European innovators are transforming climate commitments into industrial leadership. He noted that reinvesting emissions trading revenues into clean tech supports companies in reaching the market and reducing emissions. The competition for funding was fierce, with the call launched in December 2025 attracting 358 applications requesting €17.5 billion. The available budget was €2.9 billion, and every one of the five topics in the call was oversubscribed.
Nuclear and direct air capture projects included in the portfolio
Among the selected projects is the Innovation Fund’s first small modular reactor initiative, reflecting the EU’s growing interest in nuclear power. The portfolio also features the first direct air carbon capture and storage project to receive support. Six initiatives focus on processing and recycling critical raw materials, including work on rare earth permanent magnets and batteries. These projects align with the Net-Zero Industry Act and the RESourceEU Action Plan.
Other selected projects target energy-intensive industries, renewable energy sources, energy storage solutions, net-zero mobility, advanced alternative fuels, and industrial carbon management. In terms of funding requests, 12 large-scale projects sought approximately €1.58 billion, while 12 manufacturing projects aimed for nearly €895 million. Seventeen medium-scale initiatives requested around €458 million, and 20 small-scale projects sought about €124 million. Additionally, 16 pilot projects asked for roughly €394 million. The largest share of requested funds was directed toward large-scale projects.
Projects without funding receive quality recognition
An additional 84 proposals met the evaluation criteria but did not secure grants due to budget constraints. These will be awarded the STEP Seal along with the 77 funded projects. The label aims to assist them in obtaining funding from other sources. Furthermore, 160 proposals are eligible to apply for project development support from the European Investment Bank. The Innovation Fund’s current portfolio now encompasses around 320 projects with nearly €17 billion committed.
Project promoters are 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. New calls for proposals under the Innovation Fund are expected to open in early December 2026, including a €1 billion topic focused on clean-tech manufacturing. The fund is financed by an estimated €40 billion in carbon market revenues from 2020 to 2030. Independent experts assessed each application based on emission reductions, innovation potential, maturity level, and cost efficiency.