€200 Million Innovation Fund Call: New Opportunities for SMEs Developing Low-Carbon Technologies

The European Commission’s upcoming Innovation Fund SME Call 2026 aims to make EU funding more accessible to small and medium-sized enterprises developing innovative technologies that can reduce greenhouse gas emissions.

European small and medium-sized enterprises (SMEs) developing clean technologies will soon have a new opportunity to accelerate their projects through the Innovation Fund. With a dedicated budget of €200 million, the new call aims to support smaller projects that can contribute to Europe’s climate objectives but may struggle to secure sufficient financing.

The initiative responds to a recognised challenge: smaller businesses often have fewer resources than large companies to prepare complex funding applications and bring innovative technologies to market. The new call introduces simplified procedures and additional flexibility to help address these barriers.

What is the call looking to support?

The Innovation Fund focuses on the commercial deployment of innovative low-carbon technologies. The SME call covers projects with capital expenditure (CAPEX) between €2.5 million and €20 million, targeting eligible micro, small and medium-sized enterprises.

The funding scope includes several areas relevant to Europe's green transition:

• Industrial decarbonisation: Low-carbon production processes, industrial electrification, energy efficiency and waste heat recovery.

• Renewable energy and energy storage: Innovative renewable energy projects and energy storage solutions.

• Clean-tech manufacturing: Manufacturing components for renewable energy technologies, electrolysers, fuel cells, energy storage and heat pumps.

• Carbon capture and utilisation: Technologies that capture and use CO₂ in eligible industrial applications, alongside qualifying carbon capture and storage projects.

• Sustainable transport: Eligible aviation technologies, alternative fuels, electrification and zero-emission propulsion, as well as solutions for road transport and buildings under the relevant programme scope.

• Alternative products and processes: Innovative products that replace carbon-intensive alternatives.

Maritime projects are excluded from this call because a dedicated Innovation Fund maritime call is planned.

What makes this call different?

The new SME scheme introduces several measures intended to make applying for EU funding easier. These include fewer information requirements and annexes, a simplified greenhouse gas emissions calculator, and simplified reporting and monitoring.

Importantly, innovation will be assessed at either national or European level, potentially creating opportunities for SMEs whose solutions are new to their national market even if similar technologies already exist elsewhere in Europe.

Applications will be assessed against five main criteria: degree of innovation, greenhouse gas emissions avoidance potential, project maturity, replicability and cost efficiency. An additional point is available for projects located in countries with historically low participation in the

Innovation Fund, including Bulgaria, Romania, Poland and several other eligible countries.

When will applications open?

According to the European Commission's presentation of 13 October 2026, the call is planned to be published on 3 December 2026, with an information day scheduled for 10 December.

Two application deadlines are planned:

• First cut-off: End of March 2027.

• Second cut-off: September 2027.

The first round is expected to be evaluated between April and June 2027, with grant agreements for selected projects planned for July–December 2027. The second round is expected to be evaluated between October and December 2027, with agreements planned for January–June 2028.

These dates are indicative and should be checked against the published call documentation.

How can SMEs prepare?

Businesses should first confirm that they meet the EU definition of an SME and that their project falls within the eligible scope and CAPEX range. Applicants will also need to complete the SME self-assessment in the EU Funding & Tenders Portal.

The European Commission plans to offer weekly, 25-minute online orientation dialogues during the initial application period, allowing prospective applicants to ask questions about the call. National Contact Points will also be able to provide guidance.

Applications will be submitted through the EU Funding & Tenders Portal. Further information is available from the European Commission's Climate Action website.

Why should the AgriVentures community pay attention?

For agricultural and agri-food businesses, the call may be relevant where projects involve eligible industrial decarbonisation, renewable energy, energy efficiency, clean-tech manufacturing or other technologies within the programme's scope. Examples could include innovative energy systems for processing facilities or technologies that reduce emissions from eligible industrial operations.

However, agricultural projects are not automatically eligible simply because they contribute to sustainability. Applicants should verify that their activities fall within the sectors and conditions specified in the final call text.

For SMEs with a commercially mature low-carbon technology, this is an opportunity to turn innovation into deployment and contribute to Europe's climate transition. AgriVentures encourages businesses and innovators to start assessing their eligibility early and prepare for the upcoming funding window.

Check out our guides for funding opportunities

https://projects.agriventures.co/resources

Agriventures Connect 3.0 is coming on 20th of April 2027 in Sofia, Bulgaria

https://connect.agriventures.co/

The role of Agriventures in supporting agrifood innovation

As the agritech startup ecosystem grows across Europe, initiatives such as Agriventures are helping connect entrepreneurs, researchers, investors, and policymakers working in agriculture and food innovation.

Agriventures focuses on supporting agrifood startups, biotechnology innovation, and access to European funding for agriculture, while also helping entrepreneurs navigate the complex landscape of startup financing, venture capital, and research commercialization.

By strengthening connections between startups, research institutions, investors, and farmers, Agriventures contributes to building a stronger agricultural innovation ecosystem that can accelerate the transition toward sustainable agriculture and resilient food systems.

Through knowledge sharing, events, and ecosystem building, Agriventures helps ensure that promising agritech innovations can scale and reach farmers, food producers, and global markets.