BRUSSELS, Belgium / EuroWire.IO / – A total of 77 clean technology initiatives across Europe will benefit from €3.4 billion provided by the Innovation Fund. This announcement was made by the European Commission on Monday, October 19, as part of the fund’s call for net-zero solutions. Funding originates from revenues generated through the EU’s Emissions Trading System. Projects are situated in 23 nations within the European Economic Area, encompassing everything from large industrial facilities to small-scale pilot programs.
The Commission estimates that these projects could eliminate approximately 290 million tonnes of CO2 equivalent within their first ten years of operation, equating to roughly one tonne per second over the decade. The investments aim to bolster Europe’s industrial competitiveness in clean technology sectors, while also advancing energy independence and security. Contributing to the EU’s climate neutrality goal set for 2050, these initiatives are a significant step forward.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, highlighted that European innovators are transforming climate goals into industrial leadership. He emphasized that reinvesting emissions trading revenues into clean tech accelerates market entry and emissions reduction. Competition for funding was fierce; the call, launched in December 2025, drew 358 applications requesting €17.5 billion against a budget of €2.9 billion. Each of the five categories in the call was oversubscribed.
Nuclear and Carbon Capture Projects Add to Portfolio
Among the selected projects are the Innovation Fund’s first small modular reactor initiative, reflecting increasing EU interest in nuclear power. It also marks support for the first direct air carbon capture and storage project. Additionally, six initiatives focus on processing and recycling critical raw materials, including efforts related to rare earth permanent magnets and batteries. These projects are connected to the Net-Zero Industry Act and the RESourceEU Action Plan.
Other funded projects target sectors such as energy-intensive industries, renewable energy, energy storage, net-zero mobility, advanced alternative fuels, and industrial carbon management. In terms of funding requests, 12 large-scale projects sought approximately €1.58 billion, while an equal number of manufacturing projects asked for nearly €895 million. Seventeen medium-sized initiatives requested around €458 million, 20 small-scale projects sought about €124 million, and 16 pilot projects aimed for approximately €394 million. The largest portion of requested funds went to large-scale projects.
Recognition for Projects Without Funding
An additional 84 proposals met the evaluation criteria but did not receive grants due to budget constraints. These will be awarded the STEP Seal, alongside the 77 funded projects, to help secure funding elsewhere. Moreover, 160 applicants are eligible for project development assistance from the European Investment Bank. The current Innovation Fund portfolio now comprises around 320 projects with nearly €17 billion allocated.
Project leaders are in the process of finalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The Commission intends to announce the results in the first quarter of 2027. Future Innovation Fund calls are expected to open early December 2026, including a €1 billion initiative dedicated to clean-tech manufacturing. The fund is supported by an estimated €40 billion in carbon market revenues from 2020 to 2030. Experts independently evaluated each application based on emissions reductions, innovation potential, maturity level, and cost-effectiveness.
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