According to Innovation News Network, the EU is injecting €2.9 billion into 61 net-zero technology projects through its Innovation Fund. This follows the IF24 Call launched in December 2024 and builds on revenues from the EU Emissions Trading System, which is projected to generate around €40 billion for climate investments. Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, called this selection proof that Europe is turning climate ambitions into industrial reality. The projects span 19 sectors across 18 countries and are expected to cut 221 million tonnes of CO₂ equivalent during their first decade—equivalent to removing nearly 10 million cars from Europe’s roads annually. The Commission received 359 applications seeking €21.7 billion in total funding, more than nine times the available budget. Successful applicants will begin grant agreement preparation with CINEA, with contracts expected to be confirmed in the first half of 2026.
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Funding Frenzy
Here’s the thing—when you get nine times more applications than you can fund, that tells you something important. The €21.7 billion in requests for just €2.9 billion available shows there’s massive pent-up demand for clean tech financing in Europe. Basically, everyone from energy storage startups to industrial carbon management companies is scrambling for a piece of this pie. And honestly, who can blame them? With traditional venture capital getting skittish about hardware-heavy climate tech, this EU funding is becoming the lifeblood for projects that are too capital-intensive for private markets alone.
Winners and Losers
So who actually got the money? The selected projects cover everything from renewable energy and energy storage to clean mobility and green buildings. But here’s what’s interesting—this isn’t just about funding sexy new startups. A lot of this money is going to transform existing energy-intensive industries that are historically hard to decarbonize. We’re talking steel, cement, chemicals—the backbone of European manufacturing that desperately needs to go green to remain competitive. The EU is basically betting that you can’t just replace these industries—you have to transform them from within.
Global Race
Look, this isn’t happening in a vacuum. Commissioner Hoekstra didn’t mince words about the “global race for net-zero technologies.” Europe knows it’s competing against massive US subsidies from the Inflation Reduction Act and China’s dominance in solar and batteries. This €2.9 billion is Europe’s way of saying “we’re still in this game.” But is it enough? When you consider that the US IRA represents hundreds of billions in incentives, you have to wonder if Europe is bringing a knife to a gunfight. Still, targeted investments in specific technologies where Europe has existing strengths—that’s probably the smarter play than trying to match US spending dollar for dollar.
What’s Next
The timeline here is crucial. Grant agreements won’t be finalized until the first half of 2026, which means we’re looking at a significant lag between selection and actual funding. That’s both good and bad—it gives companies time to line up additional financing and partners, but it also means we won’t see immediate impact. Meanwhile, the Commission plans to launch the next Innovation Fund calls in December 2025, signaling this isn’t a one-off thing. For companies thinking about applying, the Innovation Fund page and recent announcement are essential reading. The competition is only going to get fiercer.
