The European Commission has announced a total of €2.9 billion (~$3.34 billion) in funding to 61 net-zero technology projects from its Innovation Fund. The funding utilizes revenues from the EU Emissions Trading System (EU ETS).

The Commission stated that the initiative will focus on energy-intensive industries, net-zero mobility and buildings, industrial carbon management, renewable energy and energy storage, as well as cleantech manufacturing.

The grants follow the first call for net-zero technologies (IF24 Call), which was launched in December 2024. The IF24 Call aims to enhance Europe’s technological leadership and accelerate the deployment of innovative decarbonization solutions.

The Commission said the call received 359 applications, requesting a total of €21.7 billion (~$25 billion) in support. This amount is more than nine times the available budget of  €2.4 billion (~$2.76 billion).

The grants will support projects in 19 industrial sectors across 18 countries, spanning various scales.

Projects under this initiative were selected for their potential to reduce greenhouse gas emissions, degree of innovation, project maturity, replicability, and cost efficiency.

The developers of the 61 selected projects have been invited for the grant agreement preparation phase with the European Climate, Infrastructure, and Environment Executive Agency.

The developers and the Commission will finalize the funding contract under this phase. The finalizing process will include confirming the budget, timetable, technical deliverables, and legal responsibilities.

The Commission said the results of this process are expected to be confirmed within the first half of next year.

The Innovation Fund aims to utilize estimated revenues of €40 billion (~$46.08 billion) from the EU ETS to support investment in advanced, low-carbon, and net-zero technologies.

Following this announcement, the Innovation Fund portfolio will comprise over 270 projects, with a commitment of €15.6 billion (~$17.97 billion).

The Commission plans to launch the next Innovation Fund calls in December 2025.

In 2024, it organized the first dedicated call for electric vehicle battery cell manufacturing projects. The Commission also issued the second auction for renewable hydrogen under the European Hydrogen Bank in the same year.

The grant agreements for the call and the auction are scheduled to be executed before the end of 2025.

In 2024, the European Parliament approved the Net-Zero Industry Act to enhance net-zero technology production within the EU. The Act aims to have Europe produce 40% of its net-zero technology needs by 2030 and capture 15% of the global market for these technologies.

In September this year, the European Solar Manufacturing Council and SolarPower Europe requested the European Commission to include ‘make-in-Europe’ provisions in public procurements to stimulate demand for the solar manufacturing sector.