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Industries · SUSTAINABILITY

Cleantech and climate funding consultant for companies across the EU

We match cleantech and climate companies in the EU with the European and German programmes that fit each stage, from process R&D and pilot lines to a first commercial plant. We write the documentation and deal with the authorities.

What we fund

Funding for every step from lab to first plant

Climate tech funding follows the technology. A clean process moves from R&D to a pilot line, then to demonstration and a first commercial plant, and the programmes split along those steps: some pay for the R&D, others for the plant or the efficiency investment. Decarbonisation funding and sustainability grants rarely come from one source; the mix depends on your stage, where your company and site are located, and whether you work alone or in a consortium.

Why this industry

Why cleantech and climate companies have more funding options than they use

Climate funding for companies comes from EU and national budgets, for research and for investment. Most cleantech companies only check one part of it.

EU

Open to companies across the EU

Cleantech funding at EU level needs no German entity. The EIC Accelerator and Horizon Europe accept companies established in an EU member state or an associated country, Eurostars accepts SMEs from its participating countries, and the EU Innovation Fund funds projects located in the EU, Norway, Iceland or Liechtenstein.

DE

Germany as an R&D and production base

A German company, or the German permanent establishment of a foreign one, can claim the Research Allowance. KMU-innovativ asks for a permanent establishment or branch in Germany, as does ZIM. BAFA EEW funds measures at a German site, GRW investment in an eligible German region.

Stages

Each stage has its own instrument

R&D runs through the Research Allowance, KMU-innovativ, Eurostars or Horizon Europe, scale-up through the EIC Accelerator. Pilots and first plants fit the EU Innovation Fund, efficiency investment at a German site BAFA EEW. Planning the sequence early avoids a gap between stages.

Stack

Programmes can work together

National and EU instruments can fund different stages, projects or cost items. The same costs are never funded twice: the Research Allowance, for example, leaves out costs another grant already covers.

Eligible activities

Cleantech and climate work that funders typically support

The same project can attract circular economy grants, carbon capture funding or an R&D tax credit, depending on its stage. R&D programmes look for novelty and technical risk, deployment programmes for emission cuts and readiness to scale, and each sets its own rules.

Clean process development

  • New processes to cut emissions, energy or waste
  • Catalysis, separation or reaction engineering under uncertainty
  • Process methods where no standard solution exists
  • Carbon capture and utilisation, or electrified process routes, developed under uncertainty

Typical routes: Research Allowance, Horizon Europe Cluster 5, EIC Accelerator; the EU Innovation Fund once the process reaches pilot or commercial scale.

Circular economy and recycling

  • New recycling, recovery or reuse methods
  • Sorting, separation and purification developed from scratch
  • Material recovery under new feedstock constraints

Typical routes: KMU-innovativ: Ressourcen und Kreislaufwirtschaft, Research Allowance, Eurostars, Horizon Europe Cluster 6.

Sustainable materials

  • Bio-based, low-carbon or recyclable material development
  • Formulation and performance work under new requirements
  • Durability and lifecycle testing for a novel material

Typical routes: Research Allowance, Eurostars, EIC Accelerator. For bio-based routes, see biotech funding.

Measurement and pilot scale-up

  • Monitoring and verification methods for emissions or resource use
  • Pilot-line development from bench to reproducible operation
  • Process modelling validated against pilot data

Typical routes: Research Allowance for the R&D part, the EU Innovation Fund pilot topic for pilots above €2.5M of capex, BAFA EEW for installing metering and energy management at a German site.

What qualifies and what doesn't

Where each programme draws the line

R&D programmes and investment programmes judge the same project differently, so the split depends on the instrument and the stage.

Usually fundable

  • New clean processes, recycling methods or materials developed under technical uncertainty (Research Allowance, KMU-innovativ, Eurostars)
  • Collaborative research and demonstration that matches a call topic (Horizon Europe Clusters 5 and 6)
  • Pilots, demonstration and first commercial plants with measurable emission cuts (EU Innovation Fund)
  • Energy efficiency, renewable process heat and electrification in existing operations (BAFA EEW)
  • Productive investment in a new or expanded site in an eligible region (GRW)

Usually not fundable

  • Routine operation, production ramp-up and line tuning (Research Allowance)
  • Certification, approval and standards compliance on their own (Research Allowance)
  • Standard process improvements without technical risk (Research Allowance)
  • Lab-stage research and development (EU Innovation Fund, BAFA EEW)
  • Work or investment started before the application, for BAFA EEW before approval (BAFA EEW, GRW, KfW innovation loans)
Rates and caps

What each type of funding pays

Each instrument pays in a different form. These are the official rates and caps, not a forecast for your project.

Tax credit
25% to 35%

Research Allowance: 25% of eligible R&D costs, 35% for SMEs, on R&D wages, contract research and equipment depreciation. Projects started from 2026 add a 20% overhead flat rate. From 2026 up to €3M a year, €4.2M for SMEs. Paid out even when the company makes a loss.

R&D and demonstration grants
Up to 100%

Horizon Europe: 100% for research actions, 70% for innovation actions, which include piloting and demonstration. EIC Accelerator: 70%, grant below €2.5M. KMU-innovativ: Ressourcen und Kreislaufwirtschaft pays SMEs up to 70%, or 80% with a cooperation bonus, by research stage. Eurostars: set by each country's funding body. EXIST: stipends for founders. ZIM: applications currently paused.

Investment grants, loans and equity
Up to 60%

EU Innovation Fund: up to 60% of relevant costs, by default the investment plus ten years of operating costs, minus revenues. BAFA EEW: 10% to 60% by module and company size. GRW: a share of the investment set by region and company size. KfW innovation loans: up to €25M per project. EIC Accelerator equity: €1M to €10M.

Rates, caps and thresholds from the official programme rules and the latest calls, checked October 2026. The actual amount depends on eligible or relevant costs, company size and the funder's decision.

Your route

Which route fits your company

Location, stage and whether you are building a plant decide the shortlist before the technology does.

EU company without a German entity

EIC Accelerator for climate tech startup funding towards scale-up, Eurostars through your national funding body, and Horizon Europe consortia under Clusters 5 and 6.

EU company with a German subsidiary or permanent establishment

Adds the Research Allowance. German SME grants such as KMU-innovativ and ZIM follow their own branch rules.

Founders at a German university or research institute

EXIST, applied for through the institution, then the routes above once the company exists. More on startup funding.

Building a pilot, a first plant or upgrading production

The EU Innovation Fund for projects in the EU, Norway, Iceland or Liechtenstein that meet the call thresholds, open to large companies as much as to SMEs. At a German site, BAFA EEW pays energy efficiency grants for businesses, GRW funds investment in eligible regions and KfW innovation loans finance innovation projects.

Programmes that fit

Programmes we recommend for cleantech and climate companies

Most cleantech clients move through several programmes as a technology goes from lab to plant, and the shortlist depends on stage and location.

Open to companies across the EU For companies with a base or site in Germany

Solar, storage and battery companies have their own pages: solar funding and EV and battery funding. Production equipment and automation are covered under manufacturing funding.

How each programme works in detail is explained in our guides: EU Innovation Fund, EIC Accelerator, Horizon Europe, Eurostars, Research Allowance, KMU-innovativ, BAFA EEW, ZIM, GRW, KfW innovation loans, EXIST and WIPANO.

Compare all programmes
FAQ

Cleantech and climate funding, answered

Yes, we work with cleantech and climate companies across the EU. Without a German entity, the main routes are the EIC Accelerator and Horizon Europe, open to companies established in an EU member state or an associated country, and Eurostars, in which every EU member state takes part. The EU Innovation Fund accepts applicants from anywhere, for projects located in the EU, Norway, Iceland or Liechtenstein. German programmes need a German company, permanent establishment or site.

Startups usually combine an R&D programme with an EU instrument for scale-up. The EIC Accelerator funds a single startup or SME with a grant below €2.5M and optional equity of €1M to €10M, in any field of technology. With a German entity, the Research Allowance pays 25% of eligible R&D costs, 35% for SMEs, even in a loss year, and KMU-innovativ funds SME research on resources and circular economy or on climate and energy. Founders at a German university or research institute can start with EXIST.

Yes, if it is taxable in Germany, typically through a German subsidiary or a permanent establishment. Eligibility follows German tax liability, and the tax authorities treat a foreign company with a German permanent establishment as eligible where Germany has the right to tax. The allowance is 25% of eligible R&D costs, 35% for SMEs, credited against German tax. Contract research counts only if the contractor is managed in the EU, or in an EEA state that provides administrative assistance in tax matters.

Yes, each a different part of the investment. The EU Innovation Fund funds innovative low-carbon pilots, demonstration and first commercial plants in the EU, Norway, Iceland or Liechtenstein from €2.5M of capex, at up to 60% of relevant costs: by default the investment plus ten years of operating costs, minus revenues. BAFA EEW funds energy efficiency, renewable process heat and electrification at a German site, at 10% to 60% by module and company size. Neither is meant for the R&D that comes before.

Yes, through two technology fields, for SMEs with a permanent establishment or branch in Germany by the time the grant is paid out. Ressourcen und Kreislaufwirtschaft funds research on raw material efficiency, the circular economy and sustainable water management; Energieeffizienz, Klimaschutz und Klimaanpassung covers energy efficiency, greenhouse gas reduction and climate adaptation. Both take single projects or joint projects with research partners and start with a project outline. Companies above the SME limits join only as partners in a joint project.

It depends on the programme. Under the Research Allowance, pilot work can count while it still improves a process that is not yet fixed; the R&D phase ends with the test of a prototype, and commissioning, ramp-up and fine-tuning production do not count. Horizon Europe innovation actions can fund piloting and demonstration, the EU Innovation Fund has a topic for pilots below commercial scale, and the EIC Accelerator grant covers development from TRL 6 to 8.

Yes, several programmes are built for that stage. The Research Allowance is paid out even when a company makes a loss: whatever exceeds your tax bill is refunded. The EIC Accelerator accepts startups, and even founders who will set up the company before the grant agreement is signed. Founders still at a German university or research institute can start with EXIST.

Under the Research Allowance, yes, if it meets three conditions. Depreciation on movable assets such as pilot reactors, test rigs and measurement equipment counts if they were acquired or produced after 27 March 2024, are used exclusively in the R&D project and are necessary for it. Low-value assets written off immediately do not count, nor do software and licences. Grant programmes such as KMU-innovativ apply their own cost rules to equipment.

Yes, and for some programmes it helps. Under the Research Allowance, contract research counts at 70% of the fee for contracts placed after 27 March 2024 (60% before), if the contractor is managed in the EU, or in an EEA state that provides administrative assistance in tax matters. KMU-innovativ funds joint projects in which universities and research institutes can receive up to 100% of their costs. Under the German Eurostars rules, universities and institutes are funded only when a German SME carries a substantial share of the R&D work.

Yes, for different stages, projects or cost items, within each programme's rules. A common sequence is the Research Allowance or KMU-innovativ for process R&D, Horizon Europe or the EIC Accelerator on the way to market, then the EU Innovation Fund or BAFA EEW for the plant. The same costs are never funded twice: costs another grant already covers stay out of the Research Allowance entirely, and EU grants combined on the same costs may never exceed 100% of them.

For the Research Allowance our fee is purely success-based: 10% of the funding up to €500k per year and 5% above that, due only after payout. For all other programmes the fee is a fixed share plus a success component, both agreed in advance. The first eligibility check is free and comes with no obligation.

Talk to us

Ask us anything

Tell us about your project, wherever in the EU it is based, and we'll assess your case by hand. No prep, no obligation. Prefer to talk?

Not sure you qualify?Fee agreed upfront6–12h of your time