BRUSSELS, Belgium / EuroWire.IO / – Across Europe, a total of 77 projects focused on clean technology will share €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 solutions. These grants are sourced from proceeds generated by the EU Emissions Trading System. The projects span 23 countries within the European Economic Area, including everything from large industrial facilities to smaller pilot programs.
The Commission estimates that these initiatives could reduce approximately 290 million tonnes of carbon dioxide equivalent within their first ten years of operation. This translates to roughly one tonne per second across a decade. The investments are poised to bolster Europe’s industrial strength in clean technology and are anticipated to enhance the bloc’s energy independence and security. All of these efforts contribute toward 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 emphasized that reinvesting emissions trading revenues into clean technology facilitates market entry for companies and helps lower emissions. Competition for the available funding was fierce. The call, launched in December 2025, drew 358 applications requesting €17.5 billion, whereas only €2.9 billion was available. Each of the five topics in the call was oversubscribed.
First small modular reactor project and direct air capture support included
The chosen projects feature the Innovation Fund’s inaugural small modular reactor initiative, reflecting growing EU interest in nuclear power. Additionally, the fund supports its first direct air carbon capture and storage project. Six projects focus on processing and recycling critical raw materials, such as work involving rare earth permanent magnets and batteries. These initiatives are linked to the Net-Zero Industry Act and the RESourceEU Action Plan.
Other funded projects cover areas like energy-intensive industries, renewable energy sources, energy storage solutions, net-zero mobility, advanced alternative fuels, and industrial carbon management. When broken down by category, 12 large-scale projects requested approximately €1.58 billion. An equal number of clean-tech manufacturing projects sought nearly €895 million. Seventeen medium-scale projects aimed for around €458 million, and 20 small-scale projects asked for about €124 million. Sixteen pilot projects requested roughly €394 million. The largest portion of the requested funds went to large-scale initiatives.
Additional projects qualify for recognition despite lacking funding
An extra 84 proposals met the evaluation criteria but did not receive grants due to budget constraints. These projects will be awarded the STEP Seal, which is designed to support their efforts to secure funding elsewhere. Furthermore, 160 proposals are eligible to apply for project development assistance from the European Investment Bank. The current Innovation Fund portfolio now encompasses around 320 projects with nearly €17 billion committed.
Project proposers are in the process of preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission expects to announce the results in the first quarter of 2027. New calls for proposals are anticipated to open in early December 2026, including a €1 billion topic dedicated to clean-tech manufacturing. The fund is financed by an estimated €40 billion from carbon market revenues generated between 2020 and 2030. Independent experts evaluated each submission based on criteria such as emissions reduction potential, innovation, maturity, and cost effectiveness.