These projects, launched in December 2025, aim to reinvest revenues from the EU Emissions Trading System (ETS) into innovative decarbonisation technologies. The goal is to strengthen Europe's industrial leadership and competitiveness, contributing to the clean energy transition, energy independence, and security.
Spread across 23 European Economic Area countries, the projects cover diverse sectors, including energy-intensive industries, renewable energy, clean technology manufacturing, zero-emission mobility, critical raw material transformation, alternative fuels, and industrial carbon management. For the first time, the list includes a modular nuclear reactor project and a direct air capture and CO2 storage (DACCS) project.
The Commission estimates that the 77 projects have the potential to reduce greenhouse gas emissions by approximately 290 million tonnes in their first decade of operation, significantly contributing to the EU's climate neutrality goal by 2050.
The call for proposals supported projects across five themes: general decarbonisation (large, medium, and small scale), clean technology manufacturing, and pilot projects. All themes saw demand exceeding supply, demonstrating strong interest from European industry.
Twelve large-scale, 17 medium-scale, 20 small-scale, 12 clean technology manufacturing, and 16 pilot projects were selected. Additionally, 84 projects were approved but did not receive funding, benefiting from the STEP quality label to facilitate financing from other sources.
The selected project promoters have been invited to begin grant agreement preparations with the European Climate, Infrastructure and Environment Executive Agency (CINEA). The next round of Innovation Fund calls for proposals is scheduled for early December 2026.
