The European Commission has unveiled €2.9 billion in funding to back 61 new net-zero technology projects across Europe. The money comes from the Innovation Fund, which draws on revenues from the EU Emissions Trading System (EU ETS). The funding follows the IF24 Call for net-zero technologies launched in December 2024, designed to boost Europe’s edge in clean technology and speed up the rollout of large-scale decarbonisation projects.
The chosen projects cover 19 industrial sectors in 18 countries and vary widely in size, showing the EU’s push to cut emissions through a mix of technologies. They focus on energy-intensive industries, renewable energy and storage, net-zero mobility and buildings, cleantech manufacturing, and industrial carbon management. Together, the 61 projects are expected to cut around 221 million tonnes of CO₂ equivalent over their first ten years, roughly the same as the yearly emissions of 9.9 million cars in Europe.
Developers of the approved net-zero technology projects will now proceed to the grant agreement preparation stage with the European Climate, Infrastructure and Environment Executive Agency (CINEA). During this phase, the Commission and the project promoters will finalise details such as budget allocation, implementation timelines, technical deliverables, and legal responsibilities. The completion of this process is expected in the first half of 2026.
Financed through estimated revenues of €40 billion from the EU ETS, the Innovation Fund is one of the EU’s key mechanisms to promote low-carbon and net-zero technology projects supporting the transition to climate neutrality. The IF24 Call attracted 359 applications requesting a total of €21.7 billion in funding, more than nine times the available budget of €2.4 billion. This strong response highlights both the maturity of Europe’s clean technology sector and the industry’s commitment to large-scale decarbonisation efforts aligned with the Clean Industrial Deal. So far, the Innovation Fund has supported over 270 projects with commitments exceeding €15.6 billion.
All winning projects were selected through an independent review that looked at their potential to cut greenhouse gas emissions, level of innovation, maturity, scalability, and cost efficiency. In 2024, the Commission also opened its first call focused on electric vehicle battery cell manufacturing and held its second renewable hydrogen auction under the European Hydrogen Bank. Grant agreements for both are expected to be signed before the end of the year. The Commission plans to open the next round of Innovation Fund calls in early December 2025.