BRUSSELS, Belgium / EuroWire.IO / – In Europe, a total of 77 clean tech initiatives will benefit from €3.4 billion provided by the Innovation Fund. The European Commission made the announcement on Monday, October 19, revealing the recipients of grants under the fund’s call for net-zero innovations. These funds are sourced from revenues generated through the EU Emissions Trading System. Projects span 23 nations within the European Economic Area, encompassing everything from large industrial plants to smaller pilot programs.
The Commission estimates that these projects could eliminate approximately 290 million tonnes of carbon dioxide equivalent during their initial ten years of operation. This equates to roughly one tonne of emissions avoided every second over a decade. The investments are expected to bolster Europe’s industrial competitiveness in clean technology sectors and contribute to greater energy independence and security for the bloc. These efforts align with the EU’s goal of achieving climate neutrality by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero, and Clean Growth, stated that European innovators are transforming climate ambitions into industrial leadership. He emphasized that reinvesting emissions trading revenues into clean technology aids companies in reaching market readiness and reducing emissions. The competition for funding was fierce; the call, launched in December 2025, attracted 358 applications requesting a total of €17.5 billion, whereas the available budget was only €2.9 billion. All five topics covered by the call received more applications than the funding could accommodate.
Nuclear and direct air capture projects added to the portfolio
Among the selected projects is the Innovation Fund’s inaugural small modular reactor, reflecting growing EU interest in nuclear power. It also includes the first direct air carbon capture and storage initiative to be supported. Six projects focus on processing and recycling critical raw materials, including work on rare earth permanent magnets and batteries. These initiatives are linked to the Net-Zero Industry Act and the RESourceEU Action Plan.
Additional projects address energy-intensive industries, renewable energy sources, energy storage, net-zero transportation, alternative fuels, and industrial carbon management. Breakdown by category shows 12 large-scale projects requesting approximately €1.58 billion, 12 manufacturing projects seeking nearly €895 million, 17 medium-sized initiatives asking for around €458 million, 20 small-scale projects requesting about €124 million, and 16 pilots seeking roughly €394 million. The large-scale projects secured the largest portion of the requested funding.
Quality certification for unfunded proposals
An additional 84 submissions met the evaluation criteria but did not receive funding due to budget constraints. These will be granted the STEP Seal, alongside the 77 successful projects, to support efforts to secure other funding sources. Furthermore, 160 proposals are eligible to apply for project development assistance from the European Investment Bank. The current portfolio of the Innovation Fund now encompasses around 320 projects with nearly €17 billion in committed funds.
Project proposers are preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission aims to announce the results in the first quarter of 2027. New calls for proposals from the Innovation Fund are anticipated to open in early December 2026, including a €1 billion dedicated topic for clean-tech manufacturing. The fund is financed by an estimated €40 billion from carbon market revenues between 2020 and 2030. Each bid was evaluated by independent experts based on criteria such as emissions reduction potential, innovation level, maturity, and cost-effectiveness.