The European Commission has approved 2.9 billion euros in grants for 61 net-zero technology projects across 18 member states. The funding comes from the Innovation Fund, which is financed by revenues from the emissions trading system (EU ETS).
This is the first major call focused exclusively on net-zero emission technologies, launched in December 2024, aimed at strengthening Europe’s technological leadership and accelerating the deployment of decarbonization solutions in industry, energy, transport, and buildings.
The selected portfolio covers 19 industrial sectors and a wide range of maturity and scope, from pilot phases to large-scale investments, with a focus on energy-intensive industries, renewable energy and energy storage, mobility and net-zero emission buildings, clean technology equipment manufacturing, and industrial carbon management, including CO₂ capture, utilization, and storage.
Clean Technology Production
According to the Commission’s estimates, the projects could avoid around 221 million tons of CO₂ equivalent in the first decade of operation, which is comparable to the annual emissions of 9.9 million average European cars. This directly supports the EU’s climate neutrality goal by 2050.
The funding is structured to encompass large investments with capital expenditures above 100 million euros, medium investments from 20 to 100 million euros, and small investments between 2.5 and 20 million euros. Additionally, a special line is provided for clean technology production projects above 2.5 million euros and pilot projects aimed at deep decarbonization. This range allows for the inclusion of innovative solutions that are still seeking market validation and scaling, as well as industrial investments ready for rapid implementation.
Zero euros for Croatia
Croatia is not among the winners in this allocation, so no additional funds will come from the current round of EU ETS revenues. However, there are currently three projects in the domestic portfolio of the Innovation Fund with a total grant of 129 million euros and planned capital expenditures of approximately 207.6 million euros. Together, they aim to reduce emissions by more than 3.78 million tons of CO₂e in the first ten years of operation, which represents a significant contribution to national and European climate goals.
The largest individual project is KOdeCO net zero, the first cement plant in Croatia and the Mediterranean designed for net-zero emissions, featuring carbon capture and storage technology along with a range of energy and water efficiency measures and elements of the circular economy. The estimated avoidance exceeds 3.7 million tons of CO₂ over ten years, and the project also includes educational programs for workforce retraining, with an expectation of creating ninety direct and two hundred indirect jobs.
The second project, S2H2, establishes the production of renewable hydrogen from sewage sludge in Zagreb, with a minimal carbon footprint and a circular approach through the utilization of by-products in the industry, with a technological requirement of about twenty-five tons of sludge per day. The third, DMC2 (DECARBOMALT II), combines solar thermal and heat recovery systems for industrial malt production with the goal of achieving eighty percent decarbonization of thermal supply in the food industry.
The Innovation Fund, as the EU’s central instrument for accelerating market-sustainable decarbonization technologies, is currently implemented in Croatia through project calls rather than auctions. For domestic entrepreneurs and public investors, this means that the maturity of preparation is crucial, from technical documentation and permits to bankable business models – and clear and quantifiable emission reductions compared to reference technologies. The ability to quickly scale and integrate into existing value chains, as well as compliance with national strategic documents and local community needs, adds further weight.
The absence of Croatian projects in this round does not have to be a permanent trend, but it is a warning. Competition in Europe is intensifying, and funding windows are cyclical and time-limited. If Croatia wants to secure a new generation of green investments, it is essential to intensify the development-preparation phase, timely consolidate partnerships among industry, the public sector, and research institutions, and mobilize domestic co-financing. Existing projects show that capacity and ideas are present, and the next step is faster and more ambitious preparation of applications to turn the next cycles into concrete investments, technology transfer, and jobs in the green industry.
