EU drives decarbonisation with €2.4 billion initiative

The European Commission announced last week the opening of the Net Zero Technologies call under the Innovation Fund 2024, a €2.4 billion initiative aimed at funding investment projects that significantly reduce carbon emissions in energy-intensive sectors. The call, with a budget likely to increase by 40%, seeks to accelerate the transition towards sustainable technologies across industry, transport, and energy. Interested organisations must submit their proposals by 24 April 2025.

Net Zero Technologies is designed to tackle specific challenges in decarbonisation at large, medium, and small scales. The initiative also includes support for building manufacturing facilities for clean technologies and developing highly innovative solutions to achieve profound emissions reductions.

“This call represents a major opportunity for Europe to cement its leadership in clean technologies,” says Natxo de Marco, Energy Knowledge Area leader at Zabala Innovation. He emphasises that these grants are pivotal for positioning the EU as a global leader in sustainability and technology.

Net Zero Technologies : five topics for climate transition

The Net Zero Technologies call is divided into five topics, three of which focus on decarbonisation. These are classified by project size: large-scale projects (over €100 million), medium-scale projects (€20–100 million), and small-scale projects (€2.5–20 million). Eligible activities include reducing the carbon footprint of energy-intensive industrial processes (such as mining, metals, cement, glass, paper, chemicals, plastics, and hydrogen), carbon capture and storage, and the development of renewable energy and energy storage technologies. These three topics account for a total budget of €1.5 billion.

A fourth topic, Clean-Tech Manufacturing, allocated €700 million, focuses on building and operating facilities to produce key components for alternative energy technologies. Examples include solar panels, wind turbines, electrolysers, and energy storage batteries. In this area, the European Commission places particular emphasis on promoting products that are not only more sustainable but also more competitive in terms of cost and performance. This includes technologies like heat pumps, advanced solar systems, and energy storage components with a lower carbon footprint.

The Commission is also prioritising circularity through the recycling of critical materials. Projects involving the reuse of essential components in batteries or turbines will be eligible for funding. According to De Marco, this topic reflects Europe’s ambition to lead “not only in innovation but also in the adoption of more responsible production and consumption models.”

Finally, a fifth topic, Pilot Projects, has a budget of €200 million. It is geared towards validating highly innovative decarbonisation technologies in key sectors. These initiatives aim to reduce the technical risks of new solutions before their large-scale deployment. “This is a critical theme for fostering disruptive advances that could mark a turning point in the energy transition,” says De Marco. Zabala Innovation, a consultancy that achieved double the average success rate in the previous Net Zero Technologies call, secured 8% of the available funding for its clients.

Key sectors and selection criteria

The Net Zero Technologies call covers a wide range of sectors, including energy-intensive industries such as refineries, steel, aluminium, cement, glass, and chemicals. It also encompasses renewable energy projects, energy storage, sustainable mobility, and energy efficiency in buildings.

Proposals will be assessed based on innovation, emissions reduction potential, technical, economic, and operational feasibility, as well as replicability and contributions to the EU’s resilience. De Marco predicts fierce competition: “The key lies in submitting proposals that combine technological innovation with measurable sustainability impact. This includes everything from improving production processes to developing new, more efficient materials,” he explains.

Projects will be evaluated by independent experts and must meet stringent technical and financial requirements. “Submitting applications requires a high level of technical precision,” warns De Marco. “Projects must demonstrate not only their feasibility but also their ability to contribute to the EU’s climate targets for 2050.”

Since its inception, the Innovation Fund has supported projects representing billions of euros in R&D investments for sustainability. With the Net Zero Technologies call, the European Commission aims to advance its climate goals while stimulating job creation and strengthening the continent’s technological autonomy.

“This initiative is not only a vital tool for cutting emissions but also a driver for transforming Europe’s industrial landscape, aligning it with the challenges and opportunities of a sustainable future,” concludes De Marco.