BRUSSELS, Belgium / EuroWire.IO / – A total of 77 sustainable technology initiatives across Europe are set to receive €3.4 billion from the Innovation Fund. The European Commission revealed this selection on Monday, October 19, as part of the fund’s call for net-zero solutions. These grants are financed through proceeds generated by the EU Emissions Trading System. The projects are based in 23 countries within the European Economic Area, spanning from large industrial facilities to smaller pilot schemes.
The Commission estimates that these initiatives could reduce approximately 290 million tonnes of carbon dioxide equivalent within their first ten years of operation. This equates to roughly one tonne per second over a decade. The investments aim to bolster Europe’s industrial competitiveness in clean technologies, while also contributing to energy independence and security. The projects align with the EU’s objective of achieving climate neutrality by 2050.
Wopke Hoekstra, the Commissioner for Climate, Net Zero and Clean Growth, emphasized that European innovators are transforming climate goals into industrial leadership. He highlighted that reinvesting emissions trading revenues into clean technology facilitates market entry for firms and reduces emissions. The competition for funding was fierce; the call, launched in December 2025, received 358 applications requesting €17.5 billion, against a budget of €2.9 billion. Every one of the five topics covered by the call was oversubscribed.
Nuclear and direct air capture initiatives included in the portfolio
Among the selected projects is the Innovation Fund’s first small modular reactor scheme, reflecting growing EU interest in nuclear power. It also features the first direct air carbon capture and storage project to receive 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.
Additional projects target energy-intensive sectors, renewable energy, energy storage, net-zero mobility, advanced alternative fuels, and industrial carbon management. Concerning funding requests by topic, 12 large-scale projects asked for about €1.58 billion, 12 manufacturing projects sought nearly €895 million, 17 medium-scale initiatives requested around €458 million, while 20 small-scale projects aimed for approximately €124 million. Sixteen pilot schemes sought roughly €394 million. The largest share of requested funds was allocated to large-scale projects.
Projects without funding receive quality recognition
An additional 84 proposals met the evaluation criteria but did not receive grants due to budget constraints. They will be awarded the STEP Seal alongside the 77 successful projects, aiding them in securing future funding sources. Furthermore, 160 proposals are eligible to apply for project development assistance from the European Investment Bank. The current Innovation Fund portfolio now encompasses around 320 projects with nearly €17 billion in commitments.
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 results in the first quarter of 2027. New calls for proposals are anticipated to open in early December 2026, including a €1 billion topic dedicated to clean-tech manufacturing. The fund leverages an estimated €40 billion from carbon market revenues from 2020 to 2030. Independent experts assessed each submission based on emissions reduction potential, innovation, maturity, and cost-effectiveness.