EU €5B Push Propels Carbon Capture Into the Mainstream

Nearly €5B in EU funding is accelerating carbon capture projects, pushing the technology from scattered pilots toward coordinated, industrial-scale deployment

9 Feb 2026

Europe’s carbon capture sector is moving toward large-scale deployment after nearly €5bn in grants awarded under the EU’s latest Innovation Fund call, with projects in heavy industry and clean energy moving closer to construction.

The funding round supports dozens of schemes across cement, chemicals, refining and waste treatment, sectors where emissions are hardest to cut and where electrification and efficiency gains alone are unlikely to be sufficient. By focusing on projects that are advanced in planning, the European Commission is signalling greater confidence that carbon capture, transport and storage can deliver lasting emissions reductions when deployed at scale.

A notable feature of the awards is the emphasis on integrated infrastructure. Many projects are designed to link capture facilities to shared transport systems and permanent geological storage, rather than operating as stand-alone installations. Policymakers see this approach as a way to reduce technical and financial risk, shorten development timelines and help create a functioning market for captured carbon.

EU officials say the portfolio is expected to make a material contribution to the bloc’s climate targets, including industrial value-chain goals embedded in wider climate policy. This places carbon capture as a core element of Europe’s industrial transition, rather than a niche or experimental technology.

The timing reflects mounting pressure on European manufacturers. Rising carbon prices under the EU emissions trading system and tougher global competition are squeezing margins, particularly in energy-intensive industries. Public funding is intended to absorb early-stage costs and uncertainty, improving the bankability of projects and encouraging private capital as schemes progress.

However, obstacles remain. Permitting processes, cross-border rules for transporting carbon dioxide and long-term access to storage sites could still delay projects. Some critics argue that heavy public backing risks diverting attention from other climate solutions, while supporters say carbon capture is necessary to address emissions that cannot be eliminated by other means.

The next phase will test the strategy. If projects advance on schedule and perform as expected, the latest funding round could help establish carbon capture as a standard tool in Europe’s industrial decarbonisation efforts.