The European Commission has announced a boost for Europe’s clean technology ambitions by investing €2.9 billion from the Innovation Fund to support 61 groundbreaking net-zero technologies across the continent
The funding is expected to accelerate the deployment of innovative net-zero technologies that can help Europe achieve its target of climate neutrality by 2050.
A push for decarbonisation
The selected projects cover 19 industrial sectors and are spread across 18 EU countries. They target key areas, including renewable energy, energy storage, clean mobility, green manufacturing, carbon capture, and sustainable construction.
By supporting a range of net-zero technologies and scales, the Commission aims to strengthen Europe’s leadership in clean innovation while facilitating the transition of energy-intensive industries.
These projects are expected to reduce greenhouse gas emissions by 221 million tonnes of C02 equivalent over their first ten years of operation.
Next steps for project developers
Developers of the 61 successful projects have now been invited to begin the grant agreement preparation phases with the European Climate, Infrastructure and Environmental Executive Agency (CINEA).
During this process, project promoters will work with the Commission to finalise grant contracts that specify budgets, technical milestones, timelines, and legal obligations.
This phase is expected to continue until 2025, with final agreements to be confirmed in the first half of 2026.
Once in place, these projects will move forward to implementation, marking another significant milestone in the EU’s roadmap toward a net-zero economy.
High demand for innovation fund support
The latest call, known as the IF24 Call, was launched in December 2024 and attracted enormous interest from across Europe. A total of 359 applications were submitted, requesting over €21.7 billion in funding, almost nine times the available budget.
This response, according to the Commission, demonstrates the growing maturity of Europe’s net-zero technology sector and the industry players’ determination to accelerate decarbonisation.
All net-zero technologies were assessed by independent experts against strict criteria, including their potential to cut emissions, level of innovation, readiness for implementation, replicability, and cost efficiency. Only those that showed the most potential for real-world impact were selected for funding.
Building on a growing innovation fund portfolio
With this latest round of grants, the Innovation Fund’s portfolio now comprises over 270 projects, representing a total commitment of €15.6 billion.
The fund is financed through revenues generated by the EU Emissions Trading System (EU ETS). It is expected to channel approximately €40 billion into low-carbon and net-zero innovation over the coming years.
Alongside the IF24 Call, the Commission also launched dedicated funding rounds in 2024 for electric vehicle battery cell manufacturing and a renewable hydrogen auction under the European Hydrogen Bank. Grant agreements for these initiatives are expected to be signed before the end of 2025.
The Commission plans to launch the next series of Innovation Fund calls in December 2025, offering new opportunities for European industries to access funding for clean technologies.
