BELGIUM —The European Commission has chosen 77 net-zero technology projects for funding under its Innovation Fund, directing €3.4 billion towards industrial decarbonisation and clean energy development across 23 countries in the European Economic Area. Launched in December 2025, the funding call uses revenues generated by the EU Emissions Trading System (EU ETS) to support technologies intended to reduce emissions and strengthen Europe's industrial and energy security.
The selected portfolio covers five funding categories: large-scale decarbonisation, medium-scale decarbonisation, small-scale decarbonisation, clean technology manufacturing and pilot projects. The large-scale category includes 12 projects seeking approximately €1.58 billion, while 17 medium-scale projects requested around €458 million. A further 20 small-scale projects sought approximately €124 million. Clean technology manufacturing accounted for 12 projects requesting nearly €895 million, and 16 pilot projects requested around €394 million. These figures represent the funding requested by the selected projects across the respective categories, rather than a confirmed allocation to each project.
The technologies covered include hydrogen, industrial carbon management, low-carbon chemicals, iron and steel production, aviation fuels, maritime applications, electricity storage, renewable energy, and the manufacture of solar panels, heat pumps, electrolysers and electric vehicle batteries. The selection also includes projects involving rare earth permanent magnets, critical raw material processing and recycling. For the first time in this funding call, the portfolio includes a small modular nuclear reactor project and a direct air carbon capture and storage (DACCS) project.
The Commission estimates that the selected projects could prevent approximately 290 million tonnes of greenhouse gas emissions during their first ten years of operation. The programme is intended to contribute to the European Union's (EU) objective of achieving climate neutrality by 2050 while supporting industrial competitiveness and reducing exposure to external energy and raw material supply risks.
The inclusion of six critical raw materials projects is particularly relevant to European battery, electric mobility and renewable energy supply chains. Additional domestic processing and recycling capacity could reduce reliance on imported inputs, while manufacturing investments may expand regional production of equipment required for electrification and clean energy infrastructure. Industrial operators in chemicals, steel, cement, refining and construction materials could also benefit from technologies that lower emissions from energy-intensive production.
All five funding categories received more proposals than available funding could accommodate, indicating substantial demand for public support for clean technology deployment. A further 84 projects passed the evaluation process but did not receive grants. These projects, together with the 77 selected recipients, will receive the Strategic Technologies for Europe Platform (STEP) Seal, a quality label intended to help them access additional public and private financing. Another 160 proposals remain eligible for Project Development Assistance provided through the European Investment Bank, which offers technical and financial advisory support to advance project readiness.
For investors, equipment manufacturers, industrial companies and infrastructure developers, the programme creates opportunities to participate in emerging European clean technology supply chains. However, project execution will depend on the ability to secure any additional capital required, obtain necessary permits, establish commercial demand and deliver technologies at the planned scale. The combination of grants, quality certification and project development assistance provides several routes for advancing projects beyond the initial selection stage, although funding selection alone does not establish that construction or commercial operations have commenced.
The European Commission is the executive institution of the European Union (EU), responsible for proposing legislation, implementing EU policies and managing relevant funding programmes. Through the Innovation Fund, it supports the demonstration and deployment of technologies that can reduce greenhouse gas emissions and contribute to the bloc's industrial transition.
