BRUSSELS, Belgium / EuroWire.IO / – The European Union’s Innovation Fund has approved funding for 77 clean technology projects across Europe, totaling €3.4 billion. This announcement was made by the European Commission on Monday, October 19, during the call for net-zero solutions. Funding sources stem from revenues generated through the EU Emissions Trading System. These projects are spread across 23 nations within the European Economic Area, encompassing everything from large industrial facilities to smaller pilot schemes.
Based on estimates from the Commission, these initiatives could eliminate around 290 million tonnes of carbon dioxide equivalent during their first decade of operation, which averages approximately one tonne per second over ten years. The European Commission highlighted that these investments will bolster Europe’s industrial competitiveness in the field of clean technology, while also enhancing the bloc’s energy independence and security. All of these efforts contribute toward achieving the EU’s climate neutrality goal by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, emphasized that European innovators are transforming climate ambitions into industrial leadership. He pointed out that reinvesting emissions trading revenues into clean tech supports companies in reaching markets and reducing emissions. Competition for these funds was fierce, with the call launched in December 2025 attracting 358 applications requesting a total of €17.5 billion, against a budget of €2.9 billion. Every one of the five topics outlined in the call was oversubscribed.
Nuclear energy and direct air capture projects included in funding portfolio
Among the funded projects is the Innovation Fund’s first small modular reactor initiative, reflecting the EU’s increasing interest in nuclear power. The portfolio also features the first direct air capture and storage project to benefit from support. Additionally, six projects focus on the processing and recycling of critical raw materials, including work related to rare earth permanent magnets and batteries. These efforts are aligned with the Net-Zero Industry Act and the RESourceEU Action Plan.
Other funded initiatives address energy-intensive sectors, renewable energy development, energy storage solutions, net-zero mobility, alternative fuels, and industrial carbon management. In terms of project size, 12 large-scale projects requested approximately €1.58 billion, while 12 manufacturing projects aimed for nearly €895 million. Seventeen medium-scale initiatives sought around €458 million, and 20 small-scale projects requested about €124 million. Additionally, 16 pilot projects asked for roughly €394 million, with large-scale projects securing the largest share of requested funding.
Projects without direct funding receive quality recognition
An extra 84 proposals met the evaluation standards but did not receive grants due to budget constraints. These projects will be granted the STEP Seal, which can assist in obtaining funding from other sources. Furthermore, 160 additional proposals qualify for project development assistance from the European Investment Bank. Currently, the Innovation Fund’s portfolio comprises approximately 320 projects with nearly €17 billion in committed funds.
Project sponsors are now in the process of formalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission expects to finalize the outcomes in the first quarter of 2027. New calls for proposals from 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 base is estimated at around €40 billion, derived from carbon market proceeds from 2020 to 2030. Independent experts evaluated each submission based on emissions reduction potential, innovation level, maturity, and cost-effectiveness.