BRUSSELS, Belgium / EuroWire.IO / – Seventy-seven projects focused on clean technology across Europe will benefit from €3.4 billion allocated by the Innovation Fund. The European Commission revealed the chosen projects on Monday, October 19, as part of the fund’s initiative to support net-zero technologies. These grants are financed through proceeds from the EU Emissions Trading System. The projects are spread across 23 European Economic Area countries, varying from industrial facilities to smaller pilot schemes.
The Commission estimates that these projects could reduce roughly 290 million tonnes of CO2 equivalent in their initial ten years. This amounts to about one tonne every second over a decade. The investments are expected to bolster Europe’s industrial competitiveness in clean technology. They are also anticipated to enhance the EU’s energy independence and security. Contributing to the climate neutrality goal by 2050, these initiatives are a key part of the EU’s strategy.
Wopke Hoekstra, the Climate, Net Zero and Clean Growth Commissioner, stated that European innovators are transforming climate ambitions into industrial dominance. He emphasized that reinvesting emissions trading revenues into clean tech aids companies in entering the market and reducing emissions. The competition for funding was fierce. The December 2025 open call drew 358 applications requesting €17.5 billion. The available budget was €2.9 billion. Every one of the five topics in the call was oversubscribed.
First small modular reactor project and direct air capture support included
The selection features the Innovation Fund’s first small modular reactor project, highlighting increasing EU interest in nuclear power. It also includes the inaugural direct air carbon capture and storage project to receive funding. Six projects focus on the processing and recycling of critical raw materials, such as work on rare earth permanent magnets and batteries. These projects connect to the Net-Zero Industry Act and the RESourceEU Action Plan.
Additional projects cover sectors such as energy-intensive industries, renewable energy, energy storage, net-zero mobility, advanced alternative fuels, and industrial carbon management. Regarding topic categories, 12 large-scale projects sought about €1.58 billion. Twelve clean-tech manufacturing initiatives aimed for nearly €895 million. Seventeen medium-scale projects requested around €458 million. Twenty small projects sought about €124 million, while 16 pilots requested roughly €394 million. The largest funding requests came from the large-scale category.
Projects without funding can still earn quality recognition
Another 84 proposals met the evaluation criteria but did not secure grants due to budget constraints. These will receive the STEP Seal along with the 77 winners. The label aims to assist these projects in obtaining funding from other sources. Additionally, 160 applicants can apply for project development support from the European Investment Bank. The Innovation Fund now manages about 320 projects, with close to €17 billion committed.
Project sponsors are finalizing grant agreements with the European Climate, Infrastructure and Environment Executive Agency. The European Commission expects to announce results in the first quarter of 2027. New calls for the Innovation Fund are planned for early December 2026. One upcoming topic will allocate €1 billion for clean-tech manufacturing. The fund relies on an estimated €40 billion in carbon market revenues from 2020 to 2030. Independent experts assessed each application based on emissions reduction potential, innovation, maturity, and cost-effectiveness.