The EU provides €2.9 billion in funding for ETS innovation.

The European Commission has announced €2.9 billion in grants for 61 decarbonisation projects aimed at achieving net zero, funded by the bloc's emissions trading system (ETS). These projects are projected to reduce approximately 221 million tons of CO2 equivalent over their first ten years.

Among the projects, 10 were chosen for large-scale decarbonisation grants totaling €1.26 billion, with five in cement and lime, three in refineries, one in chemicals, and one related to carbon capture and storage (CCS). Additionally, 19 medium-scale projects received a total of €459 million, each requiring between €20 million and €100 million in capital expenditure.

Funding for clean technology manufacturing was granted to 12 projects in areas like renewables, energy storage, heat pumps, and hydrogen production, amounting to €775 million. Moreover, 23 projects got €1 billion for transport decarbonisation, including 10 for sustainable fuel production, with €153 million allocated to four electro-sustainable aviation fuel initiatives, €251 million for three e-methanol maritime projects, and €78 million for e-ethanol, biodiesel, and bioLNG.

To date, over 270 projects have received a total of €15.6 billion from the innovation fund, with another call anticipated in December.