BRUSSELS, Belgium / EuroWire.IO / – A total of 77 clean technology projects across Europe will share €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 innovations. Funding is sourced from revenues generated through the EU Emissions Trading System. The projects are dispersed across 23 nations within the European Economic Area, ranging from large industrial facilities to smaller pilot programs.
The Commission estimates that these projects could reduce approximately 290 million tonnes of carbon dioxide equivalent within their first ten years of operation. This equates to roughly one tonne every second during that decade. The European Commission emphasized that these investments will bolster Europe’s industrial competitiveness in the field of clean technology, while also potentially enhancing energy independence and security for the bloc. Their contribution aligns with the EU’s objective of achieving climate neutrality by 2050.
Wopke Hoekstra, serving as the Commissioner for Climate, Net Zero and Clean Growth, remarked that European innovators are transforming climate ambitions into industrial dominance. He highlighted that reinvesting emissions trading revenues into clean tech supports businesses in entering the market and reducing emissions. Competition for the available funds was fierce. Launched in December 2025, the call attracted 358 applications requesting €17.5 billion, with only €2.9 billion available. Each of the five topics covered by the call was oversubscribed.
Nuclear and Direct Air Capture Technologies Are Part of the Portfolio
Among the selected projects is the Innovation Fund’s inaugural small modular reactor initiative, reflecting increased EU interest in nuclear power. It also features the first direct air carbon capture and storage project to secure support. Six projects focus on the processing and recycling of critical raw materials, including efforts related to rare earth permanent magnets and batteries. These initiatives are connected to the Net-Zero Industry Act and the RESourceEU Action Plan.
Other selected 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 12 manufacturing projects asked for nearly €895 million. Seventeen medium-scale initiatives requested around €458 million, and 20 small-scale projects aimed for about €124 million. Additionally, 16 pilot projects sought approximately €394 million, with large-scale topics securing the largest portion of requested funds.
Projects Without Funding Receive Quality Certification
An additional 84 proposals met all evaluation criteria but did not receive grants due to budget constraints. These projects will be awarded the STEP Seal, alongside the 77 winners, to facilitate access to alternative funding sources. Furthermore, another 160 proposals qualify for project development assistance from the European Investment Bank. Currently, the Innovation Fund portfolio encompasses around 320 projects with nearly €17 billion committed.
Project promoters are finalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission anticipates announcing the results in the first quarter of 2027. New calls for proposals are expected to open in early December 2026, including a €1 billion funding opportunity dedicated to clean-tech manufacturing. The fund’s resources are based on an estimated €40 billion from carbon market revenues spanning 2020 to 2030. Independent experts evaluated each bid based on its potential for emissions reductions, innovation level, maturity, and cost-effectiveness.