BRUSSELS, Belgium / EuroWire.IO / – A total of seventy-seven clean technology projects across Europe will benefit from €3.4 billion provided by the Innovation Fund. The European Commission revealed the selected projects on Monday, October 19, as part of the fund’s initiative to promote net-zero solutions. These grants are sourced from revenues generated by the EU Emissions Trading System. The projects span 23 countries within the European Economic Area and vary from large industrial plants to smaller pilot schemes.
The Commission estimates that, over their first ten years of operation, these projects could cut approximately 290 million tonnes of carbon dioxide equivalent emissions. This translates to roughly one tonne of emissions avoided every second across a decade. The investment aims to boost Europe’s industrial competitiveness in clean technologies and to bolster energy independence and security for the bloc. Contributing to the EU’s goal of achieving climate neutrality by 2050, these initiatives are a critical step forward.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, emphasized that European innovators are transforming climate ambitions into industrial leadership. He stated that reinvesting emissions trading revenues into clean tech helps companies accelerate market entry and reduce emissions. The competition for funding was fierce. The call, opened in December 2025, received 358 applications requesting a total of €17.5 billion, whereas the available budget was €2.9 billion. Every one of the five topics covered by the call was heavily oversubscribed.
Nuclear and Direct Air Capture Technologies Included in the Portfolio
Among the selected projects is the Innovation Fund’s first small modular reactor initiative, reflecting the EU’s growing interest in nuclear power. The portfolio also features the first direct air carbon capture and storage project to receive support. Additionally, six projects focus on the processing and recycling of critical raw materials, including efforts related to rare earth permanent magnets and batteries. These projects align with the Net-Zero Industry Act and the RESourceEU Action Plan.
Other initiatives target energy-intensive industries, renewable energy sources, energy storage, net-zero transportation, advanced alternative fuels, and industrial carbon management. In terms of funding requests, 12 large-scale projects sought approximately €1.58 billion. Twelve manufacturing projects in the clean-tech sector aimed for nearly €895 million. Seventeen medium-scale projects requested around €458 million. Twenty small-scale projects looked for about €124 million, and 16 pilot projects applied for approximately €394 million. Notably, the largest share of funding requests was made by large-scale projects.
Additional Projects to Receive Quality Certification Without Funding
A further 84 proposals met all evaluation criteria but did not receive funding due to budget constraints. These projects will be awarded the STEP Seal, along with the 77 successful projects, to assist them in securing funding from other sources. Moreover, 160 additional proposals are eligible to apply for project development assistance from the European Investment Bank. Currently, the Innovation Fund portfolio comprises approximately 320 projects with nearly €17 billion committed.
Project promoters are in the process of finalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission expects to announce the final results in the first quarter of 2027. New calls for funding are anticipated to open in early December 2026, including a €1 billion dedicated topic for clean-tech manufacturing. The fund’s revenues are based on an estimated €40 billion from the carbon market between 2020 and 2030. Independent experts evaluated each proposal based on criteria such as emissions reductions, innovation potential, technological maturity, and cost-effectiveness.