Commission invests EUR 2.9 billion from the Innovation Fund to boost net zero emission technology projects

The European Commission today announced a total of €2.9 billion in funding for 61 cutting-edge zero net emissions technology projects. The funding comes from the Innovation Fund, which uses revenues from the EU Emissions Trading Scheme (EU ETS). These grants follow a first call for net zero emission technologies (call IF24), launched in December 2024, with the aim of strengthening Europe’s technological leadership and accelerating the deployment of innovative decarbonisation solutions.

The selected projects cover 19 industrial sectors, 18 countries and different scales, reflecting the EU’s ambition to decarbonise across a wide range of technologies and applications. The focus is on energy intensive industries, renewables and energy storage, mobility and net zero emission buildings, clean technology manufacturing and industrial carbon management.

The 61 projects have the potential to significantly reduce greenhouse gas emissions, reducing some 221 million tonnes of CO2 equivalent during their first decade of operation. This is comparable to the annual emissions of 9.9 million average European cars. This reduction will directly support the EU’s goal of achieving climate neutrality by 2050.

Next steps

The promoters of the 61 selected projects have been invited to start the preparation phase of the grant agreement with the European Climate, Infrastructure and Environment Executive Agency (CINEA). During this phase, the Commission and the selected project promoters will finalise the financing contract, confirming the budget, timetable, technical deliverables and legal responsibilities. The results of this process will be confirmed in the first half of 2026.

Background

Using estimated revenues of EUR 40 billion from the EU ETS, the Innovation Fund aims to boost investment in cutting-edge, low-carbon and net zero emission technologies to support Europe’s transition to climate neutrality.

The call attracted 359 applications, requesting a total of €21.7 billion in support, more than nine times the available budget of €2.4 billion. This overwhelming response confirms both the maturity of the European net zero technologies sector and the strong commitment to decarbonise, in line with the Clean Industrial Pact. These results bring the Innovation Fund portfolio to more than 270 projects, with €15.6 billion committed.

All awarded projects were selected through an independent expert assessment based on the following criteria: their potential to reduce greenhouse gas emissions, the degree of innovation, the maturity of the projects, replicability and cost-effectiveness.

Also in 2024, the Commission organised the first dedicated call for electric vehicle battery cell manufacturing projects, together with its second renewable hydrogen auction under the European Hydrogen Bank in the framework of the Innovation Fund. Grant agreements for both the call and the auction are expected to be signed before the end of this year.

The Commission is preparing to launch the next Innovation Fund calls in early December 2025.

More information: European Commission