The European Commission has selected 77 net-zero technology projects to receive €3.4 billion under the EU Innovation Fund. Covering 23 countries in the European Economic Area, the projects span renewable energy, industrial decarbonisation, energy storage, clean technology manufacturing, sustainable fuels and carbon management. The Commission estimates that the projects could avoid around 290 million tonnes of greenhouse gas emissions during their first decade of operation.
Key Overview
- Funding allocation: €3.4 billion.
- Selected projects: 77 European net-zero technology projects.
- Geographic coverage: 23 countries in the European Economic Area.
- Potential emissions avoided: around 290 million tonnes over the first decade of operations.
- Funding source: Revenues from the EU Emissions Trading System.
- Next milestone: Grant agreement preparations, with results expected in the first quarter of 2027.
European Commission Allocates Billions to Clean Technology
The European Commission has selected 77 net-zero technology projects for funding worth €3.4 billion under the Innovation Fund call launched in December 2025. The initiative aims to accelerate industrial decarbonisation, strengthen Europe’s clean technology manufacturing base and support the transition towards climate neutrality.
The selected projects are spread across 23 countries in the European Economic Area. They cover energy-intensive industries, renewable energy, innovative energy storage, clean technology manufacturing, net-zero mobility, critical raw materials processing and recycling, advanced alternative fuels and industrial carbon management.
The funding comes from revenues generated through the EU Emissions Trading System (EU ETS), which places a carbon cost on covered emissions and generates revenue that can support climate-related investments.
The announcement is part of the EU’s wider effort to improve industrial competitiveness while accelerating the deployment of technologies that can reduce greenhouse gas emissions. The funding is intended to help projects move forward with innovative technologies that may otherwise face significant financing challenges.
The allocation is also being described as a major European clean technology funding decision, with the EU set to invest €3.4 billion in projects designed to support the bloc’s net-zero ambitions.
Which Technologies Will Receive Funding?
The selected projects cover five categories: large-scale decarbonisation, medium-scale decarbonisation, small-scale decarbonisation, clean technology manufacturing and pilot projects.
The allocation includes:
- Large-scale projects: 12 projects seeking around €1.58 billion, including initiatives involving chemicals, iron and steel, aviation, advanced fuels and industrial carbon management.
- Medium-scale projects: 17 projects requesting approximately €458 million for activities spanning refineries, maritime, hydrogen, construction materials and industrial processes.
- Small-scale projects: 20 projects requesting around €124 million, covering areas such as recycling, ocean energy, buildings and alternative fuels.
- Clean technology manufacturing: 12 projects seeking almost €895 million for technologies including heat pumps, solar panels, electrolysers, electric vehicle batteries and rare earth magnets.
- Pilot projects: 16 projects requesting around €394 million to demonstrate technologies in areas including wind energy, nuclear energy, hydrogen and direct air carbon capture.
For the first time, the selected portfolio includes a small modular nuclear reactor project and a direct air carbon capture and storage project. It also includes six critical raw materials projects intended to strengthen supply chains for technologies such as batteries and rare earth permanent magnets.
The five funding categories were oversubscribed, indicating that demand for support exceeded the funding available under the call.
Projects Could Avoid 290 Million Tonnes of Emissions
The Commission estimates that the selected projects could avoid around 290 million tonnes of greenhouse gas emissions over their first ten years of operation.
The estimated reduction is equivalent to roughly one tonne of carbon dioxide every second for a decade. If achieved, the projects would contribute to the EU’s target of reaching climate neutrality by 2050.
However, these figures are projections rather than emissions reductions already delivered. Actual results will depend on project completion, operating performance, technology deployment and the emissions avoided compared with the relevant baseline.
The funding process also extends beyond the projects selected for grants. Another 84 projects passed the evaluation but did not receive funding from the available budget. These projects, together with the 77 selected projects, will receive the Strategic Technologies for Europe Platform (STEP) seal, which can help them seek alternative public and private financing.
A further 160 proposals remain eligible for Project Development Assistance from the European Investment Bank, which provides technical and financial advisory support to help improve project readiness.
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What Happens Next?
Project promoters selected for funding have been invited to begin preparing grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA). During this stage, the Commission and project developers will finalise budgets, schedules, technical and financial deliverables, and legal responsibilities.
The results of this process are expected in the first quarter of 2027. Until agreements are finalised, the selected projects should be distinguished from projects that have completed all funding and implementation arrangements.
The Commission is also preparing another round of Innovation Fund calls for early December 2026. This is expected to include a €1 billion clean technology manufacturing topic intended to strengthen supply chains under the RESourceEU Action Plan.
Outlook
The €3.4 billion allocation provides substantial support for Europe’s net-zero technology pipeline, spanning industrial emissions reductions, renewable energy, manufacturing and carbon management. It also shows that the EU is directing carbon-market revenues towards technologies intended to strengthen industrial competitiveness and reduce emissions.
The next test will be whether the selected projects secure final agreements, reach operation and deliver their projected environmental benefits. Their progress will help determine how much the funding contributes to Europe’s climate objectives and its ability to manufacture and deploy clean technologies at scale.
Frequently Asked Questions
1. How much is the EU investing in net-zero technology projects?
The European Commission has selected 77 projects to receive €3.4 billion through the Innovation Fund.
2. Where are the selected projects located?
They are spread across 23 countries in the European Economic Area.
3. Which sectors will benefit from the funding?
The portfolio covers renewable energy, energy storage, industrial decarbonisation, clean technology manufacturing, net-zero mobility, critical raw materials, alternative fuels and carbon management.
4. When will the grant agreements be finalised?
The selected project promoters have begun preparing grant agreements, with the results of this process expected in the first quarter of 2027.
Sources: Mirage News | Baha Breaking News | Traders Union
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