A total of €398.6 million (£356.05m) is to be invested in 144 sustainable projects across Europe.
This funding will be spurred by €222.7 million (£198.94m) of investment from the European Commission to support the transition to a more sustainable and low carbon future in Member States.
It will come from the EU’s LIFE programme for Environment and Climate Action.
A significant number of the awards aim to make the European economy more circular.
Projects funded in 2016 include the introduction of low carbon rubbish trucks in Belgium, technology to clean wastewater more effectively in Italy and a project to help Greek cities increase recycling rates.
Around €75 million (£67m) will be spent to ensure the EU hits its climate action goals of reducing greenhouse gas emissions by 40% by 2030.
Last year, funding in this area helped to develop carbon storage in Eastern Europe, demonstrate the production of low-emission concrete products in France and enhance the climate resilience of German vineyards.
Miguel Arias Cañete, Commissioner for Climate Action and Energy, said: “With the Paris Agreement entering into force, we must now focus on delivering on our promises. These projects will create the right conditions to promote innovative solutions and spread best practices in reducing emission and adapting to climate change across the European Union. In this way they support the EU’s implementation of the Paris Agreement.”