BRUSSELS, Belgium / EuroWire.IO / – Across Europe, a total of 77 clean technology initiatives are set to benefit from €3.4 billion provided by the Innovation Fund of the EU. The European Commission revealed the selected projects on Monday, October 19, as part of its call for net-zero solutions. These grants are funded through proceeds from the EU Emissions Trading System. The projects span 23 countries within the European Economic Area and include a variety of endeavors, from large industrial facilities to smaller pilot schemes.
The Commission estimates that, during their initial ten years, these projects could reduce approximately 290 million tonnes of CO2 equivalent emissions. This equates to roughly one tonne every second over a decade. The European Commission emphasized that these investments will bolster Europe’s industrial edge in clean technology, while also advancing the EU’s objectives of energy independence and security. Overall, the projects support the EU’s goal of achieving climate neutrality by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, highlighted that European innovators are transforming climate ambitions into industrial leadership. He added that reinvesting emissions trading revenues into clean technology fosters market entry for companies and reduces emissions. Competition for funding was fierce; the call, launched in December 2025, attracted 358 applications requesting €17.5 billion, whereas only €2.9 billion was available. Each of the five topics covered by the call received more applications than available funding.
Nuclear and Direct Air Capture Projects Included in the Portfolio
Among the selected initiatives is the Innovation Fund’s inaugural small modular reactor project, reflecting growing EU interest in nuclear power. It also features the first project for direct air carbon capture and storage to receive support. Additionally, 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 projects address energy-intensive industries, renewable energy sources, energy storage solutions, net-zero mobility, innovative alternative fuels, and industrial carbon management. Specifically, 12 large-scale projects requested approximately €1.58 billion, 12 clean-tech manufacturing efforts sought nearly €895 million, 17 medium-scale initiatives asked for about €458 million, 20 small-scale projects requested around €124 million, and 16 pilot schemes aimed for about €394 million. The largest portion of the requested funding was allocated to large-scale projects.
Additional Projects Receive Quality Recognition Without Funding
An extra 84 proposals passed the evaluation criteria but did not secure grants due to budget constraints. These projects will receive the STEP Seal, which is designed to assist them in attracting funding from other sources. Furthermore, 160 proposals are eligible to apply for project development support through the European Investment Bank. Currently, the Innovation Fund portfolio encompasses roughly 320 projects with nearly €17 billion committed.
Project developers are in the process of finalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission anticipates announcing the results during the first quarter of 2027. Future calls for the Innovation Fund are expected to open in early December 2026, including a €1 billion initiative focused on clean-tech manufacturing. The fund leverages an estimated €40 billion in revenues from the carbon market spanning 2020 to 2030. Independent experts evaluated each application based on criteria such as emissions reduction potential, innovation, maturity, and cost-effectiveness.