The Innovation Fund (IF), launched by the European Commission, is one of the world’s largest funding programmes for pioneering low-carbon technologies. Overseen by DG CLIMA and implemented by CINEA, the fund manages calls, evaluations, and project follow-up. Depending on the carbon price, it is expected to mobilise around € 40 billion between 2020 and 2030, making it a cornerstone of the EU’s climate and industrial strategy. The next funding rounds are scheduled for December 2025. While large-scale projects usually capture the spotlight of Innovation Fund, SMEs and small-scale initiatives now hold significant untapped potential.
SMEs and small-scale calls: underused but full of promise
The small-scale calls, aimed at projects with budgets between € 2.5–20 million, remain underutilised. Unlike the oversubscribed large-scale calls, small-scale schemes often leave parts of the budget unused. This represents an opening for SMEs, who currently account for around 22% of applicants, though success rates remain relatively modest across many countries.
At the Innovation Fund Stakeholder Consultation, two priorities for the 2025 round were confirmed:
- achieving a better geographical balance in funding distribution;
- increasing SME and small-scale project participation.
Barriers for SMEs
Despite the opportunities, SMEs often face challenges. The application process is complex, requiring detailed GHG emission calculations and financial modelling, which can be resource-intensive for smaller organisations. To make the programme more accessible, DG CLIMA and CINEA are considering several improvements:
- Two-stage applications: a simplified initial stage, although this could extend the time to grant (from 9 to 18 months).
- Stronger role for NCPs: National Contact Points may gain more authority to assess project suitability and guide applicants.
- Additional support and incentives: including expanded project development assistance, clearer guidance, and possible bonus points for SME-led consortia.
- Training and outreach: more workshops, webinars, and collaboration with the Enterprise Europe Network (EEN), alongside dedicated Info Days and SME-focused events.
These measures are designed to lower entry barriers, raise awareness, and provide tailored support so SMEs can fully benefit from the fund.
Why SMEs should act now
- Greater chances of success: small-scale calls are often less competitive.
- Attractive funding rates: up to 60% of eligible costs can be covered, higher than many other EU programmes.
- Faster results: shorter project durations mean quicker impact, both for the EU and for participating SMEs.
The next call will open in December 2025, with deadlines expected in spring 2026. SMEs should start preparing now: refine your project ideas, identify partners, and structure your business plans well in advance.
How FirstBlue can support you
At FirstBlue, we specialise in helping SMEs navigate the complexities of EU funding. From concept development and business planning to compliance checks and submission, we support the entire process to maximise your chances of success. If your organisation is developing innovative low-carbon technologies, products, or processes, the upcoming small-scale Innovation Fund call is your chance to shine. Contact us to discover how we can help you secure this funding and contribute to Europe’s journey towards climate neutrality.
