LOADING

Type to search

EU Invests €4.8 Billion from Emissions Trading Revenues to Fund Net-Zero Projects

EU Invests €4.8 Billion from Emissions Trading Revenues to Fund Net-Zero Projects

EU Invests €4.8 Billion in Innovative Net-Zero Projects Funded Through Carbon Pricing System

Key Impact Points:

  • Major Investment: The EU allocates €4.8 billion from emissions trading revenues to fund 85 innovative net-zero projects in 18 countries.
  • Significant Emission Reductions: Net-Zero Projects expected to reduce emissions by approximately 476 million tonnes of CO₂ equivalent over ten years.
  • Advancement of Cleantech Manufacturing: Funding supports clean technologies in energy-intensive industries, renewable energy, energy storage, carbon management, and net-zero mobility.

The European Commission has selected 85 innovative net-zero projects to receive €4.8 billion in grants from the Innovation Fund, aiming to accelerate the deployment of cutting-edge clean technologies across Europe. This marks the largest funding round since the fund’s inception in 2020, boosting total support to €12 billion and increasing the number of projects by 70%.

Wopke Hoekstra, Commissioner For Climate Action and responsible for transport said:

“The Innovation Fund is funding more projects than ever before. 85 innovative projects in 18 countries bring cutting-edge clean technologies at the service of climate action. New projects in the maritime, aviation and road transport sectors will boost efforts to reach clean mobility. The Fund is once again demonstrating how the EU ETS is a great tool in reducing emissions, and funding the projects we need to build a climate-neutral and competitive Europe.”

Wopke Hoekstra, Commissioner For Climate Action and responsible for transport

Why It Matters

Located in 18 countries—including Belgium, Denmark, Germany, and France—the selected projects span various sectors: energy-intensive industries, renewable energy, energy storage, industrial carbon management, net-zero mobility, and buildings. These initiatives are set to become operational before 2030 and are expected to reduce emissions by about 476 million tonnes of CO₂ equivalent over their first decade.

Supporting Key EU Policy Objectives

Cleantech Manufacturing: In alignment with the Net-Zero Industry Act (NZIA), projects will develop manufacturing plants for essential components in wind and solar energy, heat pumps, electrolysers, fuel cells, and energy storage technologies. This includes contributing to:

  • 3 GW of solar photovoltaic manufacturing capacity in the EU.
  • 9.3 GW of electrolyser manufacturing capacity in the EU.

Maroš Šefčovič, Executive Vice-President for European Green Deal, Interinstitutional Relations and Foresight said:

 ” In a pivotal stride towards Europe’s climate neutrality goals, the Innovation Fund has achieved another significant milestone. The unprecedented €4.8 billion in grants will support the largest selection of Innovation Fund projects to date. For the first time, the STEP Seal has been awarded to a number of projects, which can facilitate access to more EU funding opportunities, helping make European industry stronger and more competitive. ” 

Maroš Šefčovič, Executive Vice-President for European Green Deal, Interinstitutional Relations and Foresight

Energy-Intensive Industries: The Net-Zero projects will deploy technologies to cut greenhouse gas emissions, integrate renewable energy, and implement heat and energy storage solutions in sectors that are challenging to decarbonize.

Industrial Carbon Management: Initiatives will capture CO₂ from hard-to-abate sources such as cement, lime, and chemical industries, contributing to 13% of the NZIA target of storing at least 50 million tonnes of CO₂ per year.

RELATED ARTICLE: European Commission Awards Italian Energy Groups $402 Million for Green Hydrogen

Renewable Hydrogen: Selected projects aim to deliver 61 kilotonnes of renewable fuels of non-biological origin annually, enhancing the use of renewable hydrogen in industry and transport.

Net-Zero Mobility: Projects will reduce emissions in the maritime sector by building and retrofitting vessels for renewable fuels and electricity use. They will also support the production of 525 kilotonnes of sustainable transport fuels per year.

Next Steps

Successful applicants are expected to sign grant agreements with the European Climate, Infrastructure and Environment Executive Agency (CINEA) in the first quarter of 2025.

Additionally, Net-Zero projects that scored above evaluation thresholds but were not funded will receive project development assistance from the European Investment Bank and are awarded the STEP Seal—the EU’s new quality label under the Strategic Technologies for Europe Platform (STEP) to facilitate access to further support opportunities.

Looking Ahead

The Commission plans to launch the next call for proposals under the Innovation Fund in early December 2024.

Background: The EU Emissions Trading System’s Innovation Fund is one of the world’s largest funding programs for deploying net-zero and innovative technologies, with an estimated revenue of €40 billion between 2020 and 2030. To date, the fund has awarded about €7.2 billion to over 120 innovative projects across the European Economic Area.

The bottom line: This substantial investment underscores the EU’s commitment to accelerating the transition to a climate-neutral economy by supporting innovative projects that reduce emissions and bolster Europe’s technology leadership.

Topics

Related Articles

LOADING

Type to search

Blog

Turkey Sets 2030 Target to Cut Aviation Emissions by 5% Using Sustainable Fuel
Green Climate Fund Approves Record $1.225B for Climate Projects
UK Launches First Onshore Wind Strategy to Double Capacity, Unlock 45,000 Jobs
Phlair, Carbon Removal AS Launch Europe’s First Large-Scale DAC and CO₂ Storage Project
ISSB Launches Major Review of SASB Standards to Strengthen Climate and Industry Alignment
IKEA to Cut 1,400 Tons of Plastic Annually with Paper-Based Fitting Bags
Salesforce Launches Agentforce to Automate Sustainability Disclosures and Unlock Emissions Insights
Terra CO2 Secures $124.5M to Accelerate Commercial Rollout of Low-Carbon Cement Alternatives
Allianz Commercial Launches Climate Risk & Resilience Platform for Businesses
EU Commission Proposes Tax Incentives to Accelerate Clean Industrial Transition
J.P. Morgan’s Kinexys Partners with S&P Global to Pilot Blockchain for Carbon Markets
Mars Achieves 1.9% Emissions Cut in 2024, Unveils $250M Sustainability Investment Fund
GRI Opens Public Consultation on Revised Labor Standards for Inclusion, Equal Opportunity
New Coalition Launches to Tax Premium Flyers for Climate Resilience and Fair Transitions
Dexter Energy Secures €23M to Expand AI-Driven Trading for Renewables and Batteries
88% of Companies See Sustainability as a Long-Term Value Driver, Morgan Stanley Report
Climeworks Secures $162M in Largest Carbon Removal Investment of 2025
Zelestra Expands Sustainability-Linked Loan to €770 Million, Backed by 11 Global Banks
EU Sets 2040 Climate Target with 90% Emissions Reduction
Microsoft Secures 1.1M Tonnes of Carbon Removals in 10-Year Deal with Hafslund Celsio
Google Signs Largest Corporate Fusion Energy Deal with Commonwealth Fusion Systems
Eni, Azimut Next Launch €100M Clean Tech Fund to Accelerate Energy Innovation
CAF Approves $5.2B for Sustainable Development
EU to Integrate Carbon Credits Into 2040 Emissions Target
SP Energy Networks Launches £1.4bn Grid Investment to Accelerate UK’s Clean Power 2030 Goals
ESMA Flags Gaps in Sustainability Disclosures, Calls for Tighter Oversight in Investment Sector
Nokia Secures €1.5B Credit Facility Tied to Scope 1–3 Emissions Reduction Targets
Swiss Climate Disclosure Law Put on Hold as EU Finalizes Sustainability Reforms
EU Commission Confirms Green Claims Directive Not Withdrawn
British Airways Signs SAF Deal with EcoCeres to Cut 400,000 Tons of CO₂ Emissions
EU, EIB Unveil €5 Billion Flexible Guarantee to Unlock Global Green and SME Investments
ESG News Week In Review: 23 June - 29 June
DBS, OCBC, and UOB Launch First Report on Nature-Related Financial Risks
Singapore Business Federation Seeks ISSB Climate Reporting Delay for Smaller Firms
Ambienta Raises €500M to Scale Europe’s Small Cap Sustainability Champions
Wolters Kluwer Launches ESG Tools for CBAM Compliance and Sustainable Financial Planning
Slovenia Raises €1B Through First Sustainability-Linked Bond
Tudor Expands Sustainability Program, Reinforces Ethical Watchmaking Goals
Eni and BMW Italia Join Forces to Advance Sustainable Mobility with Biofuels and EV Charging
Meta Secures Nearly 800 MW in New Clean Energy from Invenergy to Power Data Center Expansion
MERLIN Properties and Carbon2Nature Launch 200-Hectare Forest to Capture 160,000 Tons of CO₂
ByteDance Buys 100,000+ High-Integrity Carbon Credits from Rubicon Carbon
GRI Launches Climate and Energy Reporting Standards Aligned with Global Climate Goals
AIIB and Keppel to Mobilize $1.5B for Sustainable Infrastructure Across Asia-Pacific
UK Releases Draft Sustainability, Climate Reporting Standards Aligned with IFRS
FourTwoThree Launches to Unlock $50 Trillion SME Climate Finance Opportunity
UK Unveils Plan to Become Global Hub for Sustainable Finance, Launches Transition Plan Consultations
UK, Kenya, and Singapore Launch Government Coalition to Boost High-Integrity Carbon Markets
Frontier Secures Deal with Wild Assets for 120,000 Tonnes of Permanent Carbon Removals
Microsoft Signs 12-Year Deal with Agoro Carbon for 2.6 Million Soil Carbon Removal Credits
EU Adopts New State Aid Framework to Accelerate Clean Industrial Development Through 2030
Microsoft Signs 10-Year Deal with Anew Climate, Aurora to Secure 4.8M Forest Carbon Removal Credits
JPMorganChase Secures 50,000 Ton Carbon Removal Deal with 1PointFive
Gap, Target, and Houdini Partner with Syre to Drive Global Shift to Circular Polyester
IFRS Foundation Issues New Guidance on Climate Transition Plan Disclosures
Greenbelt Capital Closes First Fund at $1B to Accelerate Energy Transition
EU Council Pushes Major Cutbacks to Sustainability Reporting and Due Diligence Rules
L’Oréal Launches €100M Innovation Accelerator to Scale Sustainable Beauty Solutions
LEGO Marks Three Years of Near-Zero Waste to Landfill in Global Manufacturing
EFRAG Targets 50% Cut in ESRS Reporting Burden in Progress Update to EU Commission
UK Launches $3.56 B Industrial Plan to Drive Clean Energy
Virgin’s Net-Zero Targets Approved by SBTi, Signaling Bold Climate Commitment
Eni Sells 20% of Plenitude to Ares for $2.3B in Renewables
GRI Launches Machine-Readable Taxonomy to Streamline Global Sustainability Reporting
Cushman & Wakefield: ESG Ranks Among Top 2 Real Estate Priorities in EMEA and APAC
Singapore Releases Draft Guidance to Strengthen Use of Voluntary Carbon Credi
Image of black tesla cars driving in china
videocam
Deep Sky Secures First DAC Offtake Deal with Rubicon Carbon
HPCL to invest $231 million to build 24 compressed biogas plants in India
Carbon Upcycling Secures $18M to Scale Low-Carbon Cement Technology
Coldplay Cuts Vinyl Emissions by 85% with Recycled EcoRecords
La Caisse Sets $400B Climate Investment Target by 2030 Following Strong Decarbonization Gains
Octopus Energy Launches $60M Fund to Accelerate Clean Power Across Africa
Mango Becomes First Brand to Use Circulose® Since Restart
videocam
videocam
Climate Tech Partners Secures $50M+ to Back High-Growth Climate Startups
Volkswagen Bank Raises €1.5 Billion in First-Ever Green Bond to Boost EV Financing
ReGenEarth Launches £100M Green Bond to Scale Biochar Carbon Removal Tech
Eni’s Versalis Unveils Demo Plant for Breakthrough Plastic Recycling Tech ‘Hoop
EPP Rejects EU Green Claims Directive, Urges Full Withdrawal
Rubicon Carbon Launches Rated Carbon Credit Portfolio with AAport Certification from BeZero
TerraPower Secures $650M to Accelerate Advanced Nuclear Deployment
Norway Launches World’s First Full-Scale Carbon Capture and Storage Value Chain
Goldman Sachs Asset Management (GSAM) has launched the Goldman Sachs Emerging Markets Green and Social Bond Active UCITS ETF (GEMS)
Google Maps Expands Sustainable Travel Features Across Europe
Datamaran launches Core Product to Streamline ESG Risk & Reporting
SAP Secures 37,000 Tons of Carbon Removals Through Climeworks Partnership
UN Global Compact Network Appoints Former Meta ESG Head Amanda Gardiner as Executive Director
KKR Acquires Zenith Energy to Expand Off-Grid Renewable Power in Australia
Amazon Becomes First to Use Sustainable Aviation Fuel at Ontario Airport in Neste Deal
IFRS Foundation Launches Free E-Learning Modules to Support ISSB Standards Adoption
UN Global Compact Launches CMO Blueprint for SustainUN Global Compact Launches CMO Blueprint for Sustainable Growth at Cannes Lionsable Growth at Cannes Lions
France Targets Ultra-Fast Fashion with Eco-Tax, Ad Ban, and Transparency Rules
SEC Drops ESG Disclosure and Shareholder Proposal Rules as Regulatory Rollbacks Accelerate
Australia Launches Sustainable Finance Taxonomy to Guide Net Zero Investment
","session_id":"ep-sess-1760561851-9FldsQ26","page_url":"https:\/\/esgnews.com\/eu-invests-e4-8-billion-from-emissions-trading-revenues-to-fund-net-zero-projects\/","post_id":"31033","tracking_enabled":"1","original_referrer":"","has_embedded_content":""}; /* ]]> */