BRUSSELS, Belgium / EuroWire.IO / – A total of 77 environmentally sustainable technology projects across Europe are set to receive a combined €3.4 billion from the Innovation Fund of the EU. This announcement was made by the European Commission on Monday, October 19, as part of the fund’s initiative to promote net-zero solutions. The funding derives from revenues generated by the EU Emissions Trading System and the projects are dispersed across 23 nations within the European Economic Area, encompassing a variety of undertakings from large industrial facilities to smaller pilot schemes.
The European Commission estimates that these projects could eliminate approximately 290 million tonnes of carbon dioxide equivalent emissions within their initial ten-year operation period, which averages out to roughly one tonne every second over a decade. The Commission highlighted that these investments are expected to bolster Europe’s competitiveness in clean technology sectors while also enhancing the energy independence and security of the European Union. They serve as a crucial component in advancing the EU’s goal of achieving climate neutrality by 2050.
Wopke Hoekstra, serving as the Commissioner for Climate, Net Zero and Clean Growth, emphasized that European innovators are transforming their climate ambitions into regional industrial leadership. He explained that reinvesting emissions trading revenues into clean technology innovations assists companies in reaching the market more effectively and reducing their emissions. The competition for funding was fierce, with the call launched in December 2025 attracting 358 applications requesting a total of €17.5 billion against a set budget of €2.9 billion. Every one of the five categories within the call received more applications than available funding, indicating high demand and interest.
Nuclear energy and direct air capture projects included in new portfolio
Among the selected projects is the Innovation Fund’s inaugural small modular reactor initiative, reflecting the growing EU focus on nuclear power. Additionally, it features the first direct air carbon capture and storage scheme to receive support. Several projects are dedicated to the processing and recycling of critical raw materials, such as work on rare earth permanent magnets and batteries. These initiatives align with the objectives of the Net-Zero Industry Act and the RESourceEU Action Plan.
The portfolio also includes projects targeting energy-intensive industries, renewable energy production, energy storage, net-zero transportation solutions, innovative alternative fuels, and industrial carbon management. Funding requests across categories show that 12 large-scale projects sought approximately €1.58 billion, while 12 manufacturing initiatives asked for nearly €895 million. Seventeen medium-sized projects aimed for around €458 million, with 20 smaller projects requesting about €124 million, and 16 pilot schemes seeking roughly €394 million. The largest share of funding was allocated to the large-scale project category.
Projects without funding awarded a quality mark
An additional 84 proposals satisfied the evaluation criteria but did not receive grants due to funding limitations; nonetheless, these will be granted the STEP Seal, which is intended to assist them in attracting further funding sources, alongside the 77 successful projects. Furthermore, 160 other proposals are eligible to apply for project development support from the European Investment Bank. Currently, the Innovation Fund’s portfolio encompasses around 320 projects with nearly €17 billion committed. Project promoters are now preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency, with the European Commission planning to disclose the final results in the first quarter of 2027. Moreover, new calls for funding are scheduled to open in early December 2026, including a dedicated €1 billion line for clean-tech manufacturing, with the fund leveraging an estimated €40 billion in carbon market revenues from 2020 to 2030. Independent experts evaluated each submission based on its potential for emissions reduction, innovation level, maturity, and cost-effectiveness.