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The agency, which concluded a two-day ministerial meeting in Seville, Spain, on Thursday, agreed a budget of 12.5 billion euros for the next three years or 14.4 billion euros over five years.
ESA's director-general, Jan Woerner, said in a live-streamed news conference that the amount countries had pledged was more than the agency had initially proposed.
"From my point of view, climate change is a strong driver," Woerner said. "This shows there is awareness for our planet because citizens are asking to do something and you can only do something if you have the right information."
Lunar exploration
The funding will also be used to ensure European participation in a new wave of lunar exploration.
The first launch -- without a crew -- is planned for the end of 2020.
ESA said it will send more European astronauts to the International Space Station before 2024.
And there was also a 10% boost for the agency's space science budget, including plans to use gravitational waves to study black holes and a mission to intercept and study a comet in our solar system.