BRUSSELS, Belgium / EuroWire.IO / – A total of 77 projects focused on clean technology across Europe 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 the fund’s call for net-zero solutions. The funds are sourced from revenues generated by the EU Emissions Trading System. These initiatives are distributed across 23 nations within the European Economic Area and encompass a range of applications from large industrial plants to smaller pilot schemes.
As per estimates from the Commission, these projects could reduce approximately 290 million tonnes of carbon dioxide equivalent emissions over their first decade of operation. This amount roughly equates to one tonne per second over ten years. The European Commission highlighted that such investments are poised to bolster Europe’s industrial competitiveness in the field of clean technology. Additionally, these projects are expected to enhance energy independence and security within the region. All of these efforts contribute towards the EU’s overarching goal of achieving climate neutrality by 2050.
Wopke Hoekstra, serving as the Commissioner for Climate, Net Zero and Clean Growth, emphasized that European innovators are transforming climate ambition into industrial leadership. He stated that reinvesting emissions trading revenues into clean tech initiatives aids companies in bringing their innovations to market and reducing their emissions. The competition for funding was highly competitive; the call, launched in December 2025, received 358 applications requesting €17.5 billion, while only €2.9 billion was available. Every category within the five topics of the call was oversubscribed, reflecting strong interest.
Nuclear and Direct Air Capture Projects Included in Portfolio
Among the selected projects is the Innovation Fund’s inaugural small modular reactor initiative, reflecting the EU’s growing focus on nuclear power. Support was also granted to the first direct air carbon capture and storage project. Additionally, six initiatives are dedicated to processing and recycling critical raw materials, including endeavors related to rare earth permanent magnets and batteries. These projects are aligned with the Net-Zero Industry Act and the RESourceEU Action Plan.
The portfolio also encompasses projects targeting energy-intensive industries, renewable energy, energy storage, net-zero mobility, advanced alternative fuels, and industrial carbon management. When analyzed by topic, 12 large-scale projects requested approximately €1.58 billion, 12 manufacturing projects sought nearly €895 million, 17 medium-scale projects aimed for about €458 million, 20 small-scale initiatives asked for around €124 million, and 16 pilots requested roughly €394 million. Funding requests for large-scale projects comprised the largest share within the portfolio.
Certification for Non-funded Projects
In addition, 84 proposals fulfilled the evaluation criteria but did not secure grants due to budget constraints. These projects will receive the STEP Seal, alongside the 77 awarded initiatives, to facilitate their access to funding from other sources. Furthermore, 160 additional 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 a total committed funding nearing €17 billion.
Project promoters are now preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission expects to publish the final results during the first quarter of 2027. New calls for the Innovation Fund are anticipated to open in early December 2026, including a dedicated €1 billion topic for clean-tech manufacturing. The fund’s revenue is estimated at around €40 billion from carbon market proceeds between 2020 and 2030. Independent experts have assessed each application based on criteria such as emissions reductions, innovation potential, maturity, and cost-effectiveness.