The European Commission has unveiled a €2.9 billion funding package to support 61 pioneering net-zero technology projects across Europe. Awarded under the Innovation Fund, the grants aim to accelerate the continent’s transition to climate neutrality and strengthen its position as a leader in clean technology innovation. This funding builds on the first call for net-zero technologies launched in December 2024 and reflects the EU’s ongoing commitment to reduce greenhouse gas emissions and support the shift toward low-carbon industrial solutions.
The Innovation Fund is financed through revenues from the EU Emissions Trading System (EU ETS), which is expected to generate around €40 billion for climate-related investments. Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, emphasized that the funding demonstrates Europe’s ability to turn climate ambitions into industrial realities. By investing in domestic innovation, the EU seeks to boost energy resilience, create high-quality jobs, and maintain competitiveness in the emerging green economy.
The 61 selected projects cover 19 sectors across 18 European countries, targeting areas such as energy-intensive industries, renewable energy generation, energy storage, clean mobility, green buildings, cleantech manufacturing, and industrial carbon management. Together, these initiatives are projected to reduce 221 million tonnes of CO₂ equivalent over their first decade, an impact comparable to removing nearly 10 million cars from European roads annually. This reduction will significantly contribute to the EU’s 2050 climate neutrality goals.
Competition for the funding was intense, with 359 applications requesting €21.7 billion—over nine times the available budget. Projects were evaluated on emissions reduction potential, innovation, scalability, cost efficiency, and technical readiness. The addition of these 61 projects brings the Innovation Fund portfolio to over 270 projects, representing €15.6 billion in total commitments since its inception.
The selected applicants will now enter the grant agreement preparation phase with the European Climate, Infrastructure and Environment Executive Agency (CINEA), where contracts, technical deliverables, and funding schedules will be finalized, with agreements expected in the first half of 2026. The European Commission plans to launch the next round of Innovation Fund calls in December 2025, signaling continued investment in technologies that will drive Europe toward a sustainable, competitive, and climate-neutral future.
