European Commission allocates €2.9 billion to 61 net-zero technology projects

The European Commission has approved €2.9 billion in grants under its Innovation Fund to support 61 large-scale net-zero technology projects across Europe. Funded through revenues from the EU Emissions Trading System (EU ETS), the initiative is designed to accelerate industrial decarbonisation and strengthen Europe’s technological leadership in clean energy and manufacturing.

The selected projects cover 19 industrial sectors in 18 countries, targeting areas such as energy-intensive industries, renewable energy and storage, carbon management, net-zero mobility, buildings, and cleantech manufacturing. Together, they are expected to cut around 221 million tonnes of CO₂-equivalent emissions within their first decade of operation — roughly the annual output of 9.9 million European cars.

Developers of the successful projects will now begin the grant-agreement preparation phase with the European Climate, Infrastructure and Environment Executive Agency (CINEA) to confirm budgets, timetables, and technical deliverables. Final agreements are expected in the first half of 2026.

The Innovation Fund, which draws on estimated EU ETS revenues of €40 billion, aims to stimulate investment in low-carbon and net-zero industrial technologies as part of the EU’s goal of climate neutrality by 2050.

The 2024 net-zero call received strong interest, with 359 applications requesting €21.7 billion in funding — more than nine times the available budget. Since its inception, the Innovation Fund has committed €15.6 billion to over 270 projects.

The next Innovation Fund calls are scheduled for launch in December 2025.

Source: European Commission, Photo: Fotolia