The European Commission has unveiled a €2.9bn funding package to propel 61 groundbreaking net-zero technology projects across the continent, marking a significant step in Europe’s journey towards climate neutrality. The grants, awarded under the Innovation Fund, aim to accelerate the transition to clean technologies and bolster Europe’s leadership in this burgeoning sector. This investment follows the first call for net-zero technologies (IF24 Call) launched in December 2024, demonstrating the EU’s commitment to reducing greenhouse gas emissions and supporting industries in their shift towards low-carbon solutions.
The Innovation Fund, fueled by revenues from the EU Emissions Trading System (EU ETS), is projected to generate around €40bn for climate-related investments. Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, emphasized the transformative potential of these investments: “This selection shows that Europe is turning its climate ambitions into industrial reality. The response to this call demonstrates the strength of our innovators and the determination of our companies to lead the global race for net-zero technologies. By investing in home-grown solutions, we are building energy resilience, creating quality jobs and ensuring that Europe remains competitive in the economy of tomorrow.”
The 61 selected projects span 19 sectors and 18 European countries, focusing on energy-intensive industries, renewable energy generation, energy storage, clean mobility, green buildings, cleantech manufacturing, and industrial carbon management. Collectively, these projects are expected to cut 221 million tonnes of CO₂ equivalent during their first decade of operation, equivalent to removing nearly 10 million cars from Europe’s roads annually. This reduction is crucial for the EU to meet its 2050 climate neutrality target.
The overwhelming interest in the IF24 Call underscores Europe’s green ambition. The Commission received 359 applications seeking €21.7bn in total funding—more than nine times the available budget. Projects were selected based on their potential for emissions reduction, level of innovation, scalability, cost efficiency, and technical readiness. With these new additions, the Innovation Fund’s portfolio now exceeds 270 projects, representing €15.6bn in total commitments since its inception.
The 61 successful applicants will now enter the grant agreement preparation phase with the European Climate, Infrastructure and Environment Executive Agency (CINEA). This stage will finalize contracts, technical deliverables, and funding schedules, with agreements expected to be confirmed in the first half of 2026. The Commission plans to launch the next Innovation Fund calls in December 2025, signaling continued investment in cutting-edge solutions that can propel Europe toward a sustainable, competitive, and climate-neutral economy.
This funding package is poised to shape the development of the sector by fostering innovation and accelerating the deployment of net-zero technologies. By investing in a diverse portfolio of projects, Europe is not only reducing its carbon footprint but also positioning itself as a global leader in clean technology. The fierce competition for funding highlights the maturity of Europe’s net-zero technology sector and the private sector’s commitment to achieving the goals set out in the Clean Industrial Deal. As these projects come to fruition, they will play a pivotal role in building energy resilience, creating quality jobs, and ensuring Europe’s competitiveness in the global economy of tomorrow.