BRUSSELS, Belgium / EuroWire.IO / – The European Commission has selected 77 net-zero technology projects to receive €3.4 billion in funding from the Innovation Fund. The Commission announced the results of the fund’s net-zero technologies call on October 19. The money comes from revenues generated by the EU Emissions Trading System. The selected projects are spread across 23 countries in the European Economic Area. They cover a wide range of clean industrial technologies.
The Commission estimates that the projects could avoid around 290 million tonnes of carbon dioxide equivalent over their first 10 years of operation. That equals roughly one tonne every second for a decade. The projects are expected to strengthen Europe’s industrial leadership and competitiveness in clean technology. They should also support energy independence and security. The funding contributes to the EU’s goal of climate neutrality by 2050.
Commissioner for Climate, Net Zero and Clean Growth Wopke Hoekstra said the projects show European innovators turning climate ambition into industrial leadership. He said reinvesting carbon market revenues helps companies bring clean technologies to market. The call, launched in December 2025, drew 358 applications. Applicants requested €17.5 billion against an available budget of €2.9 billion. All five topics of the call were oversubscribed. The Innovation Fund is one of the world’s largest funding programmes for innovative low-carbon technologies.
Large-scale and manufacturing projects lead funding
Twelve large-scale projects requested around €1.58 billion, the biggest share of the funding. Another 12 projects in clean-tech manufacturing asked for almost €895 million. The medium-scale topic selected 17 projects worth about €458 million. Twenty small-scale projects requested around €124 million. A further 16 pilot projects sought some €394 million. The portfolio covers energy-intensive industries, renewable energy, energy storage and net-zero mobility. Together, the five topics account for all 77 selected projects.
For the first time, the Innovation Fund will support a small modular nuclear reactor project. It will also back its first direct air carbon capture and storage project. Six projects focus on processing and recycling critical raw materials, including rare earth permanent magnets and batteries. Other selected projects involve advanced alternative fuels and industrial carbon management. The Commission has previously backed clean industry projects through the same fund.
Grant agreements expected in early 2027
Another 84 projects passed the evaluation but could not receive funding from the available budget. Those projects and the 77 selected ones will receive the STEP Seal quality label to help them attract other financing. A further 160 proposals remain eligible for project development assistance from the European Investment Bank. Independent experts evaluated the bids on emissions reduction, innovation, maturity, replicability and cost efficiency. The seal is part of the Strategic Technologies for Europe Platform.
The selected promoters are now preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The Commission expects to announce the results of that process in the first quarter of 2027. The next Innovation Fund calls are due to open in early December 2026, including a €1 billion clean-tech manufacturing topic. The fund also runs hydrogen and industrial heat auctions. Its portfolio now numbers around 320 projects with almost €17 billion committed.