BRUSSELS, Belgium / EuroWire.IO / – A total of 77 clean technology initiatives across Europe will receive €3.4 billion from the Innovation Fund of the EU. The European Commission revealed the selected projects on Monday, October 19, as part of the fund’s initiative for net-zero innovations. These grants are funded through income generated by the EU’s Emissions Trading System. The projects span 23 European Economic Area countries and include a variety of facilities from industrial plants to smaller pilot programs.
As per the Commission’s forecast, these projects have the potential to cut approximately 290 million tonnes of carbon dioxide equivalent during their first ten years of operation, averaging about one tonne per second over a decade. The Commission emphasized that these investments will bolster Europe’s industrial competitiveness in clean technology and are poised to enhance the EU’s energy independence and security. Furthermore, they contribute to the EU’s objective of achieving climate neutrality by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, remarked that European innovators are transforming climate ambitions into industry leadership. He highlighted that reinvesting emissions trading revenues into clean technology supports companies in bringing solutions to market and reducing emissions. Competition for the funding was fierce; the call, launched in December 2025, drew 358 applications requesting €17.5 billion, with a budget of €2.9 billion. Every one of the five topics covered by the call was oversubscribed.
Nuclear and Direct Air Capture Projects Included
Among the selected projects are the Innovation Fund’s inaugural small modular reactor initiative, reflecting the EU’s growing focus on nuclear power, as well as the first direct air carbon capture and storage project to receive backing. Six projects are dedicated to the processing and recycling of critical raw materials, such as work on rare earth permanent magnets and batteries. These projects align with the Net-Zero Industry Act and the RESourceEU Action Plan.
Additional initiatives target energy-intensive sectors, renewable energy, energy storage, net-zero mobility, advanced alternative fuels, and industrial carbon management. In terms of funding requested, 12 large-scale projects sought around €1.58 billion, while 12 manufacturing projects aimed for nearly €895 million. Seventeen medium-sized initiatives requested approximately €458 million, 20 small-scale projects looked for about €124 million, and 16 pilot projects sought roughly €394 million. The largest share of funding requests came from the large-scale category.
Additional Projects Receive Quality Recognition
A further 84 proposals, which met evaluation criteria, did not secure grants due to budget constraints but will be awarded the STEP Seal, helping them attract other funding sources. An additional 160 proposals are eligible to apply for project development assistance from the European Investment Bank. Currently, the Innovation Fund’s portfolio comprises around 320 projects with nearly €17 billion allocated.
Project developers are in the process of finalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission plans to announce the final 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 supported by an estimated €40 billion in revenues from the carbon market from 2020 to 2030. Independent experts evaluated each proposal based on emissions reduction potential, innovation, maturity, and cost-effectiveness.