The European Commission has announced €2.9 billion in new funding to accelerate the development and deployment of next-generation net-zero technologies across Europe. The investment, awarded through the Innovation Fund, will support 61 cutting-edge projects designed to drive decarbonisation in energy-intensive industries, renewable energy, sustainable mobility, and industrial carbon management.

Source: EC Europa

Financed by revenues from the EU Emissions Trading System (EU ETS), this round follows the first dedicated call for net-zero technologies (IF24 Call) launched in December 2024. The initiative aims to strengthen Europe’s technological leadership in the clean energy transition and speed up the commercialisation of innovative climate solutions.

The selected projects cover 19 industrial sectors and 18 countries, representing a diverse mix of large-scale industrial sites and smaller, pioneering ventures. Together, they are expected to cut around 221 million tonnes of CO₂ equivalent during their first decade of operation—roughly the same as the annual emissions of 9.9 million cars.

A Commission spokesperson said the investments show Europe’s commitment to climate leadership and industrial innovation.

These projects will not only reduce emissions but also boost Europe’s competitiveness and create thousands of quality jobs in the clean-tech sector.

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The developers of the 61 successful projects have been invited to begin the grant agreement preparation phase with the European Climate, Infrastructure and Environment Executive Agency (CINEA). This stage will finalise the budget, timetable, technical deliverables, and legal responsibilities for each project. The agreements are expected to be confirmed in the first half of 2026.

The Innovation Fund, backed by an estimated €40 billion from the EU ETS, is one of the world’s largest funding programmes for low-carbon technologies. It aims to leverage private investment in solutions that can deliver deep, scalable emission reductions and support the EU’s goal of achieving climate neutrality by 2050.

This latest call attracted 359 applications requesting €21.7 billion in support—more than nine times the available budget—highlighting the maturity and dynamism of Europe’s net-zero technology sector. With this round, the Innovation Fund now supports over 270 projects, representing a total commitment of €15.6 billion.

In addition, the Commission has advanced other initiatives under the Fund, including the first call for electric vehicle battery cell manufacturing and the second renewable hydrogen auction under the European Hydrogen Bank. Grant agreements for these are expected to be signed before the end of 2025.

The next round of Innovation Fund calls is scheduled for early December 2025, further expanding support for Europe’s transition to a clean, resilient, and competitive net-zero economy.