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The funding, announced on Monday, 19 October, will come from the EU Innovation Fund, which uses revenues generated by the Emissions Trading System to support investment in technologies intended to reduce greenhouse gas emissions.
The selected projects include manufacturing facilities, renewable energy installations, advanced energy storage, critical raw materials processing and industrial carbon management. For the first time, the programme also includes a small modular nuclear reactor project and a direct air carbon capture and storage initiative.
The announcement comes amid growing concern over Europe’s industrial competitiveness, particularly as manufacturers face high energy costs, increasing competition from China and difficulties securing investment for major industrial projects.
According to the Commission’s announcement, the 77 selected projects span energy-intensive industries, clean technology manufacturing, alternative fuels, transport and several other sectors.
Six projects concern critical raw materials, an area in which the EU has been seeking to reduce its exposure to foreign suppliers.
These investments are intended to strengthen European supply chains for technologies including batteries, renewable energy equipment and permanent magnets, which are essential components in electric motors and other industrial applications.
The funding follows renewed political pressure to expand the processing and production of strategically important materials inside Europe.
As EU Today recently reported, the European Parliament has been pressing for stronger measures to reduce dependence on China for critical raw materials used by European manufacturers.
China occupies a dominant position in several international processing and refining markets, leaving European companies exposed to supply interruptions and trade restrictions.
The Commission is seeking to support alternative production capacity through financial assistance, industrial regulation and measures designed to attract private capital.
However, the selection of projects for EU funding does not automatically mean that the proposed facilities will be built. Their implementation will still depend on financing agreements, regulatory approvals and commercial decisions.
The inclusion of a small modular nuclear reactor project represents a new development in the Innovation Fund’s portfolio.
Small modular reactors are designed to produce electricity or industrial heat using nuclear technology on a smaller scale than conventional nuclear power stations.
Supporters argue that modular construction could reduce certain project risks and provide stable electricity supplies for energy-intensive industries.
However, the technology faces substantial challenges involving construction costs, regulatory approval, supply chains and the transition from demonstration projects to commercial production.
The Commission published a European strategy for small modular reactors in March, outlining plans to accelerate their development and support the first operational facilities in the early 2030s.
The latest funding decision gives the technology access to a financial instrument principally associated with industrial decarbonisation and clean energy investment.
Another newly represented technology is direct air carbon capture and storage, which involves extracting carbon dioxide from the atmosphere and storing it.
Both technologies remain at comparatively early stages of commercial deployment in Europe, making their eventual costs and performance important considerations.
The Innovation Fund is financed through revenues from the EU Emissions Trading System, under which companies operating in covered sectors must obtain allowances for their greenhouse gas emissions.
Part of the revenue generated from auctioning allowances is reinvested into projects designed to introduce lower-emission technologies into industrial production.
The Commission estimates that the 77 newly selected projects could avoid approximately 290 million tonnes of greenhouse gas emissions during their first ten years of operation.
That figure is a projection based on the projects’ anticipated performance, rather than an achieved reduction. Actual results will depend on construction, commissioning and subsequent commercial operation.
The funding announcement also follows the publication of the EU’s broader industrial policy initiatives, which seek to increase domestic production of clean technologies and improve investment conditions for European manufacturers.
The Commission announced a separate allocation of more than €390 million to 135 environmental and climate projects under the LIFE programme on the same day. That funding is distinct from the €3.4 billion Innovation Fund selection.
The companies and organisations behind the selected Innovation Fund projects must now complete the procedures necessary to obtain their grants.
During the Commission’s 19 October press briefing, officials indicated that project-specific grant amounts would become available when the agreements are signed, currently envisaged for the first quarter of 2027.
The final allocations and implementation conditions therefore remain subject to the grant preparation process.
For industrial companies, the principal test will be whether the European funding attracts sufficient additional investment to bring the selected technologies into commercial operation.
The results will also provide an indication of how effectively Brussels can translate its industrial policy objectives into additional European manufacturing capacity, particularly in sectors where supply chains remain concentrated outside the Union.
Industrial production in the eurozone fell by 0.5 per cent in August compared with July, according to figures released by Eurostat on Thursday, adding to evidence that European manufacturers are struggling to sustain a recovery amid rising energy costs and uncertain demand.
The decline followed a revised contraction of 0.3 per cent in July, while output across the wider European Union fell by 0.3 per cent in August. Compared with the same month last year, eurozone production was down 1.1 per cent, against a decline of 0.2 per cent across the EU as a whole.
Belgium recorded the largest monthly contraction among the member states covered by the release, at 5.1 per cent, followed by Ireland at 3.1 per cent and Portugal at 2 per cent.
The latest industrial production figures underline the uneven performance of Europe’s factories, with losses concentrated in some economies and sectors while others continue to expand.
The sectoral breakdown presents a particularly revealing picture of the pressures facing European industry.
Production of intermediate goods, which include materials and components supplied to other manufacturers, declined by 0.8 per cent across the eurozone in August. Energy production fell by 0.6 per cent, while output of non-durable consumer goods contracted by 2.7 per cent.
By contrast, capital goods production increased by 0.4 per cent, indicating that activity in equipment and machinery manufacturing remained comparatively resilient.
The divergence was also pronounced between member states. Industrial production increased by 6.5 per cent in Sweden, 4.3 per cent in Estonia and 2.6 per cent in the Netherlands.
On an annual basis, Ireland recorded a 15 per cent decline, followed by Belgium at 7.1 per cent and Bulgaria at 5.4 per cent. The Netherlands, meanwhile, registered growth of 9.8 per cent compared with August 2025.
These variations make it difficult to describe Europe’s industrial position as a single, uniform downturn. National production figures reflect different industrial structures, production cycles and exposure to particular markets.
Ireland’s figures, for example, can be influenced by changes in output among large multinational enterprises, while Belgium’s manufacturing economy is particularly exposed to developments in chemicals, pharmaceuticals and energy-intensive production.
Nevertheless, the simultaneous contraction of industrial output across the eurozone reinforces concerns about the strength of the European economic recovery.
The continuing disruption of global energy supplies has complicated the position of European manufacturers, particularly businesses that depend on predictable electricity and gas prices.
The Middle East conflict has increased uncertainty over energy costs and transportation, making production planning more difficult for companies operating with substantial fuel, heating or electricity requirements.
As EU Today reported earlier this week, Brussels has already moved to delay certain methane requirements for energy imports as governments seek to limit additional pressure on gas supplies.
The decision reflects a wider debate over whether the EU’s existing regulatory framework adequately accounts for the international cost disadvantages facing European industrial producers.
Chemicals, metals, fertilisers and other energy-intensive industries must compete with manufacturers operating in markets where energy costs and regulatory requirements can differ considerably.
The problem extends beyond immediate profitability. Persistently unfavourable operating costs can affect decisions about new factories, maintenance, modernisation and the location of future investment.
Those decisions may have longer-lasting economic consequences than monthly fluctuations in production.
The figures arrive as EU governments debate the future of European industrial policy, including the treatment of imported products and the conditions under which companies should qualify for public support.
Recent disagreements over proposed European-content requirements have illustrated divisions between governments seeking greater protection for EU manufacturers and those concerned that restrictive rules could increase costs or disrupt supply chains.
In a recent warning over the proposed Made in Europe framework, Mercedes-Benz chief executive Ola Källenius argued against excluding Britain from industrial arrangements intended to strengthen European production.
The debate is particularly consequential for automotive manufacturers whose supply chains extend across EU borders and into neighbouring countries.
Meanwhile, the proposed EU budget for 2028–2034 has become another focus of disagreement, with member states questioning how much funding should be devoted to industrial competitiveness, strategic technologies and energy infrastructure.
The immediate economic issue is whether European factories can recover production as energy costs remain elevated and external demand fluctuates.
Eurostat’s August figures do not establish how individual government policies have affected output, nor do they determine whether the contraction will continue. They do, however, show that industrial activity entered the autumn with limited momentum.
The next industrial production release, covering September, is scheduled for 16 November and will provide an indication of whether the late-summer weakness persisted into the final quarter of the year.
A note before we start. What follows works through the innovation loops of the semiconductor world, sub-sector by sub-sector, with eight diagrams along the way. They are complicated, despite a fair amount of effort to make them otherwise. Anyone who wants to skip the loops and the slides can find the conclusions in two places: […]
The post The real loops of innovation appeared first on Asia Times.
The three co-rapporteurs, including Renew Europe’s Christophe Grudler (ITRE), outline the priorities in Parliament’s draft report on the Industrial Accelerating Act, (IAA), as they finished their draft report this week. For Liberals and Democrats, the IAA report is seen as pivotal in boosting EU competitiveness and industrial resilience as a response to mounting global insecurity. During the drafting process, MEP Grudler has ensured that European taxpayer money prioritises businesses, jobs, and innovation in the EU, marking a pivotal shift in the EU’s approach to public procurement and economic sovereignty.
Key measures include: - Raising the threshold for Made in Europe and low-carbon products in strategic sectors to 50 percent by 2036, ensuring that public funds support domestic industries and sustainability. - Expanding strategic materials to include plastic for construction, in addition to steel, aluminium, and cement. - Increasing EU content in net-zero technologies, such as wind turbines, solar panels, heat pumps, and nuclear power plants, to strengthen Europe’s industrial capacity and leadership in the green transition.
The era of unconditional openness is over. Renew Europe is pushing for true reciprocity, ensuring that European markets open only to countries that effectively do so in the same conditions. To ensure fairness and prevent loopholes, clear safeguards, including stricter definitions and component requirements that will close the door on circumvention and guarantee that public funds truly benefit European industries, are also introduced.
Christophe Grudler, co-rapporteur on behalf of the Committee on Industry, Research and Energy (ITRE), said: “It is time to put an end to a wait-and-see approach and a certain naivety. Facing fierce global competition, we must build and consolidate the value chains of our strategic sectors in Europe: from steel and aluminium to the automotive industry and clean technologies. European taxpayers’ money must be used as a lever to achieve this: to support those who produce, innovate and create jobs here, within the Union. But greater ambition must not mean greater complexity. We are proposing simple, clear and applicable rules, without unnecessary administrative burdens for businesses and local authorities. This is the ambition we are setting out in this draft report. The work begins now: I will fight to ensure that the Accelerator rises to the challenge of the current industrial emergency.”
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