European Commission invests €3.4 billion in clean technologies
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The European Commission will fund 77 clean technology projects across 23 European Economic Area countries with €3.4 billion from the Innovation Fund.
The funding comes from revenues generated by the European Union Emissions Trading System and aims to boost Europe’s competitiveness and energy independence by reducing industrial carbon emissions.
The Commission estimates these projects could prevent around 290 million tonnes of greenhouse gas emissions in their first ten years of operation, equating to roughly one tonne of carbon dioxide reduction per second over a decade. The projects cover five funding areas including large, medium, and small-scale decarbonisation, clean tech manufacturing, and pilot projects. Selected initiatives span industries like renewable energy, energy storage, alternative fuels, and carbon management.
Twelve projects will focus on manufacturing components for technologies such as heat pumps, solar panels, and electric vehicle batteries, with another six addressing critical raw materials for European supply chains. This round of funding marks the first time the Innovation Fund will support a small modular nuclear reactor and a direct air capture and storage of carbon dioxide project.
While 77 projects will receive funding, 84 approved projects could not be funded due to limited resources, but will receive a STEP quality label to help attract further investment. The Commission plans to launch the next round of funding applications in early December 2026, including a €1 billion focus on clean tech manufacturing.
