Horizon Europe Funding for UK Climate Tech Companies
A comprehensive guide to accessing Europe's largest research and innovation programme. Everything UK climate tech companies need to know about eligibility, grant sizes, consortium requirements, and how to build a winning bid.
In this guide
- 1. What is Horizon Europe?
- 2. UK association status after Brexit
- 3. How UK companies access Horizon Europe
- 4. Climate-relevant pillars and Cluster 5
- 5. Grant sizes and funding rates
- 6. Consortium requirements
- 7. Finding consortium partners
- 8. Application process and timeline
- 9. UK-specific considerations and the Innovate UK guarantee
- 10. How GreenFundr helps
- 11. Frequently asked questions
1. What Is Horizon Europe?
Horizon Europe is the European Union's flagship research and innovation framework programme, running from 2021 to 2027 with a total budget of approximately EUR 95.5 billion. It is the largest transnational research funding programme in the world and the successor to Horizon 2020, which ran from 2014 to 2020.
The programme is designed to drive scientific excellence, tackle major societal challenges, and strengthen Europe's industrial competitiveness. For climate tech companies, Horizon Europe represents one of the most significant sources of non-dilutive funding available anywhere, with billions allocated specifically to clean energy, sustainable transport, and climate adaptation technologies.
Horizon Europe is structured around three main pillars. Pillar I: Excellent Science funds frontier research through the European Research Council (ERC) and Marie Sklodowska-Curie Actions. Pillar II: Global Challenges and European Industrial Competitiveness organises applied research and innovation into six thematic clusters. And Pillar III: Innovative Europe supports market-creating innovation through the European Innovation Council (EIC) and the European Institute of Innovation and Technology (EIT).
For most UK climate technology companies, the greatest opportunities lie within Pillar II, specifically Cluster 5: Climate, Energy and Mobility, and to some extent Cluster 4: Digital, Industry and Space, where cross-cutting themes like smart grids and digital twins for energy systems sit.
2. UK Association Status After Brexit
The UK's relationship with Horizon Europe was one of the most closely watched aspects of the post-Brexit science policy landscape. After prolonged negotiations linked to the Northern Ireland Protocol, the UK and the EU reached an agreement in September 2023 that confirmed the UK's association to Horizon Europe. The formal association took effect in January 2024.
As an associated country, the UK has near-equivalent status to EU member states within the programme. UK-based researchers, universities, businesses, and other organisations can participate in the vast majority of Horizon Europe calls. They can receive funding directly from the European Commission, coordinate projects, and count towards the minimum consortium requirements. This is a significant advantage over third-country status, where participation is possible but funding is not guaranteed and coordination roles are typically unavailable.
There are a small number of exceptions. UK participants cannot access certain security-sensitive calls or specific European Innovation Council equity instruments. However, these exclusions affect a relatively small fraction of the total programme and are unlikely to be relevant for most climate tech companies.
The association agreement covers the remainder of the Horizon Europe programme through to 2027, providing UK organisations with several years of continued access to European collaborative research funding. This makes long-term planning possible and gives climate tech companies the confidence to invest time in building European partnerships.
3. How UK Companies Access Horizon Europe Post-Brexit
UK companies access Horizon Europe through the same process as any EU-based participant. All open calls are published on the European Commission's Funding and Tenders Portal, which is the single entry point for finding opportunities, forming consortiums, submitting proposals, and managing grants.
To participate, a UK organisation must first register on the portal and obtain a Participant Identification Code (PIC). This is a nine-digit code that uniquely identifies each legal entity in the EU's funding system. Registration is free and involves providing basic organisational and financial information. Once registered, an organisation can join consortiums, submit proposals, and receive funding.
UK companies can participate in Horizon Europe in several roles. They can serve as the project coordinator, leading the entire consortium and managing the relationship with the European Commission. They can be a full partner, responsible for specific work packages and receiving a corresponding share of the budget. Or they can act as a linked third party or subcontractor, though this is less common for SMEs seeking significant funding.
For UK climate tech SMEs in particular, joining as a full partner is the most common route. SMEs bring commercial orientation and exploitation potential that evaluators value highly in Innovation Actions. Many Horizon Europe topics explicitly encourage or require SME participation, and some calls even set minimum SME budget shares.
4. Key Climate-Relevant Pillars: Cluster 5 and Beyond
The most directly relevant part of Horizon Europe for UK climate tech companies is Cluster 5: Climate, Energy and Mobility. This cluster has a budget of approximately EUR 15.1 billion across the programme period and covers six broad destination areas.
Climate Sciences and Responses
Climate modelling, Earth observation, climate adaptation strategies, and nature-based solutions.
Cross-Sectoral Solutions for the Climate Transition
Circular economy approaches, systemic innovation, and cross-cutting tools that support multiple sectors in their decarbonisation pathways.
Sustainable, Secure and Competitive Energy Supply
Renewable energy technologies, energy storage, hydrogen production and distribution, carbon capture utilisation and storage, and grid integration.
Efficient, Sustainable and Inclusive Energy Use
Building energy efficiency, industrial energy systems, heating and cooling, and smart energy management.
Clean and Competitive Solutions for All Transport Modes
Zero-emission vehicles, sustainable aviation fuels, maritime decarbonisation, rail innovation, and connected autonomous transport.
Safe, Resilient Transport and Smart Mobility Services
Intelligent transport systems, multimodal logistics, urban mobility, and infrastructure resilience.
Beyond Cluster 5, climate tech companies may also find relevant opportunities in Cluster 4: Digital, Industry and Space, which covers digital technologies for energy systems, smart manufacturing, and advanced materials. Cluster 6: Food, Bioeconomy, Natural Resources, Agriculture and Environment is relevant for companies working on nature-based carbon removal, sustainable agriculture technology, or water management. Additionally, the European Innovation Council (EIC) Accelerator under Pillar III provides blended finance (grant plus equity) for breakthrough innovations, including climate technologies, and is open to individual SMEs without consortium requirements.
The EU also operates several Missions and Partnerships that channel Horizon Europe funding towards specific climate goals. The Mission on Climate Adaptation, the Clean Hydrogen Partnership, the Clean Aviation Partnership, and Batteries Europe are all examples that create focused funding streams relevant to UK climate tech companies.
5. Typical Grant Sizes and Funding Rates
Horizon Europe grant sizes vary significantly depending on the type of action and the specific call topic. Understanding the different action types and their funding rates is essential for budgeting and deciding whether a particular call is worth pursuing.
Research and Innovation Actions (RIA)
RIAs fund activities that establish new knowledge or explore the feasibility of new or improved technologies, products, processes, services, or solutions. The EU funding rate is 100% of eligible costs for all participants. Total project budgets for Cluster 5 RIAs typically range from EUR 3 million to EUR 10 million, with individual partner budgets commonly between EUR 200,000 and EUR 800,000.
Innovation Actions (IA)
IAs focus on activities closer to market, including prototyping, testing, demonstrating, piloting, and scaling. The standard EU funding rate is 70% of eligible costs, but SMEs and non-profit organisations receive a top-up to 100%. This makes IAs particularly attractive for climate tech SMEs. Total project budgets tend to be larger, ranging from EUR 5 million to EUR 20 million, reflecting the higher costs of demonstration and pilot activities.
Coordination and Support Actions (CSA)
CSAs fund coordination, networking, and supporting activities such as standardisation, policy dialogue, and awareness-raising. Funded at 100%, these typically have smaller budgets of EUR 1 million to EUR 3 million. They are less relevant for companies developing hardware or software but can be valuable for platform-based businesses or industry conveners.
EIC Accelerator
The EIC Accelerator provides up to EUR 2.5 million in grant funding plus optional equity investment up to EUR 15 million for individual SMEs with breakthrough innovations. Unlike collaborative calls, the EIC Accelerator does not require a consortium. It is highly competitive, with success rates typically below 5%, but the combination of grant and equity can be transformative for scaling climate technologies.
Eligible costs under Horizon Europe include direct personnel costs, subcontracting, equipment, travel, and other direct costs. Indirect costs are covered by a flat rate of 25% of eligible direct costs (excluding subcontracting). UK organisations should note that VAT is not an eligible cost under Horizon Europe, even if it is not recoverable.
6. Consortium Requirements
Most Horizon Europe collaborative calls require a minimum consortium of three independent legal entities from three different EU member states or associated countries. The UK, as an associated country, counts towards this requirement. So a consortium with one UK organisation, one German organisation, and one Spanish organisation would meet the minimum threshold.
In practice, successful consortiums are almost always larger than the minimum. The typical Cluster 5 project has between six and fifteen partners, reflecting the multidisciplinary nature of climate innovation. A strong consortium generally includes a mix of partner types to demonstrate credibility across the research-to-market spectrum.
Research Organisations and Universities
Provide scientific expertise, access to testing facilities, and credibility in fundamental research work packages. Evaluators expect to see strong academic partners in RIAs.
Large Industrial Partners
Bring manufacturing capability, supply chain access, and demonstration sites. Their involvement signals market pull and exploitation potential.
SMEs and Start-ups
Contribute innovative technologies and commercial agility. Many calls explicitly require or encourage SME participation, and evaluators value the innovation potential SMEs bring.
Public Bodies and Regulators
Offer regulatory insight, policy alignment, and access to public infrastructure or data. Particularly valued in demonstration projects that require permitting or public engagement.
End Users and Demand-Side Partners
Validate market need and provide real-world testing environments. Including end users strengthens the exploitation and impact sections of a proposal.
Geographic balance also matters. While not a formal requirement, evaluators look favourably on consortiums that include partners from multiple European regions, particularly widening countries in Central and Eastern Europe. Including partners from these countries can strengthen your proposal and is actively encouraged by the European Commission.
7. How to Find Consortium Partners
Building a consortium is often the most time-consuming aspect of a Horizon Europe bid. Finding the right partners requires a combination of strategic thinking, networking, and practical outreach. Here are the main channels UK climate tech companies use.
Existing Professional Networks
Start with organisations you already know. Previous collaborators, conference contacts, joint venture partners, and supply chain relationships can all be starting points. Partners with whom you have existing trust and working relationships make the strongest consortium members because evaluators can see evidence of prior collaboration.
The Funding and Tenders Portal Partner Search
The European Commission's portal includes a partner search tool where registered organisations can post their expertise and interest in specific calls. This is a free resource and can surface potential partners across Europe, though the quality and responsiveness of listings varies.
National Contact Points (NCPs)
Every EU member state and associated country has National Contact Points who provide free advice and can help connect you with potential partners in their country. The UK NCP network, managed by UKRI, offers guidance on specific programme areas and can facilitate introductions.
European Technology Platforms and Partnerships
Industry-led platforms like the European Clean Hydrogen Alliance, Batteries Europe, and ETIP Wind bring together organisations working in specific technology areas. These platforms regularly host brokerage events and matchmaking sessions aligned with upcoming Horizon Europe calls.
Specialist Consortium Builders
Services like GreenFundr's Consortium Leadership offering can handle the entire partner identification and outreach process. This is particularly valuable for companies bidding into Horizon Europe for the first time, as specialist builders have established networks across European academia and industry and understand what partner profiles evaluators expect.
8. Application Process and Timeline
The Horizon Europe application process is more structured and formal than most UK domestic grant programmes. Understanding the stages and timeline is critical for planning resource allocation across your team and consortium.
Step 1: Identify the Right Call
Calls are published in the Horizon Europe Work Programme, which is updated every two years. Each call topic specifies the scope, expected outcomes, budget, action type, and submission deadline. Calls open between three and five months before the deadline. The earlier you identify relevant calls, the more time you have for consortium building.
Step 2: Build Your Consortium
Ideally begin six to twelve months before the expected call opening. Define the technical vision, identify capability gaps, approach potential partners, and agree on roles and budget allocations. Consortium agreements should be drafted in parallel.
Step 3: Write the Proposal
Proposals are submitted through the Funding and Tenders Portal. Most collaborative proposals are evaluated on three criteria: Excellence (scientific and technical quality), Impact (expected outcomes and wider effects), and Quality and Efficiency of Implementation (work plan, management, and resources). Each section is scored out of five by independent expert evaluators. The threshold is typically three out of five per criterion and ten out of fifteen overall.
Step 4: Submission and Evaluation
After submission, proposals undergo independent expert evaluation over approximately five months. Some calls use a two-stage process where a short outline is evaluated first, and only successful outlines are invited to submit a full proposal. This is increasingly common for calls with high expected application volumes.
Step 5: Grant Agreement Preparation
Successful proposals enter Grant Agreement Preparation (GAP), a one-to-three-month process where the consortium and the European Commission finalise the legal, financial, and technical details. Work packages, deliverables, milestones, and budgets are confirmed. The project officially starts once the grant agreement is signed.
Overall, you should plan for a twelve-to-eighteen-month timeline from initial opportunity identification to project kickoff. This long lead time means that Horizon Europe is best suited for companies that can plan strategically and invest in relationship building before specific calls are published.
9. UK-Specific Considerations
While the UK's association to Horizon Europe means that UK participants are treated broadly the same as EU partners, there are several UK-specific factors that companies should be aware of.
The Innovate UK Guarantee Scheme
During the period between Brexit and the formal confirmation of UK association, UKRI (through Innovate UK) operated a guarantee scheme. Under this arrangement, UK participants in successful Horizon Europe proposals would receive their funding from UKRI if the EU did not fund them. Since formal association was confirmed in January 2024, the guarantee is less relevant for new applications. However, it remains important for legacy applications submitted during the transition period. Companies with ongoing guarantee-funded projects should continue to liaise with Innovate UK for reporting and payment processes.
UKRI Support and National Contact Points
UKRI operates the UK National Contact Point network for Horizon Europe. NCPs provide free, confidential advice on programme areas, help identify relevant calls, review draft proposals, and connect UK applicants with potential partners in other countries. The energy and climate NCP is particularly active and well-connected. UKRI also runs information events, webinars, and workshops to help UK organisations navigate Horizon Europe.
Complementary UK Domestic Funding
UK climate tech companies should consider Horizon Europe as part of a broader funding strategy that includes domestic programmes. Innovate UK Smart Grants, the Net Zero Hydrogen Fund, the Industrial Energy Transformation Fund, and Catapult centre programmes can all complement or serve as stepping stones towards Horizon Europe bids. Successfully delivering a domestic grant project builds the track record and evidence base that Horizon Europe evaluators look for. Use our GrantMatch Scan to map all relevant opportunities across UK and European programmes simultaneously.
Currency and Financial Reporting
Horizon Europe budgets are denominated in euros. UK participants receive payments in euros and must manage currency risk accordingly. Financial reporting follows European Commission rules, which differ from Innovate UK reporting requirements. Companies should ensure their finance teams understand the eligible cost categories, timesheets requirements, and audit provisions specific to Horizon Europe grants.
10. How GreenFundr Helps UK Companies Win Horizon Europe Funding
Horizon Europe represents a significant opportunity for UK climate tech companies, but the complexity of the programme, the consortium-building requirements, and the highly competitive evaluation process mean that expert support can make the difference between a funded project and a near miss.
GreenFundr provides end-to-end support for UK climate tech companies pursuing Horizon Europe funding. Our team has experience shaping proposals worth over GBP 45 million across hydrogen, clean aviation, and infrastructure sectors.
Opportunity Identification
We continuously monitor the Horizon Europe Work Programme and upcoming calls to identify the best-fit topics for your technology and stage. Our GrantMatch Scan maps every relevant opportunity across both UK and European programmes.
Consortium Building
Through our Consortium Leadership service, we identify, approach, and onboard the right partners from our network across European academia, industry, and the public sector. We manage the entire consortium coordination process.
Proposal Writing
We develop the full proposal from technical narrative to impact section, work plan, and budget. Our writers understand what Horizon Europe evaluators look for and how to structure arguments that score highly against the Excellence, Impact, and Implementation criteria.
Submission and Follow-Through
We manage the portal submission process, ensure compliance with all formatting and content requirements, and support the Grant Agreement Preparation phase if the proposal is successful.
Whether you are considering your first Horizon Europe bid or looking to improve on a previous near-miss, we can help you navigate the programme structure, build the right consortium, and submit a proposal that meets the evaluation threshold. Our approach is structured, transparent, and built on practical experience with the programme.
Ready to explore Horizon Europe funding?
Book a free 30-minute funding review. We will assess your technology, stage, and the best-fit Horizon Europe calls for your company.
11. Frequently Asked Questions
Can UK companies still apply for Horizon Europe funding after Brexit?
Yes. The UK formally associated to Horizon Europe in January 2024, which means UK-based organisations can participate in the vast majority of Horizon Europe calls on equivalent terms to EU member state participants. UK entities are eligible for direct EU funding and can coordinate consortiums. The only exceptions are a small number of security-sensitive calls and certain European Innovation Council equity instruments.
What is the minimum consortium size for a Horizon Europe project?
Most collaborative Research and Innovation Actions (RIA) and Innovation Actions (IA) require a minimum of three independent legal entities from three different EU member states or associated countries. The UK counts as an associated country, so a consortium could include one UK partner and two EU partners, or any other qualifying combination. Some calls require larger consortiums or specific types of partners such as SMEs or academic institutions.
How much funding can a UK SME receive from a Horizon Europe grant?
Funding rates depend on the action type. Research and Innovation Actions (RIA) fund up to 100% of eligible costs. Innovation Actions (IA) fund up to 70% of eligible costs, with SMEs receiving a top-up to 100%. Individual partner budgets typically range from EUR 200,000 to EUR 1.5 million within a collaborative project, depending on the scope of their work packages. Total project budgets under Cluster 5 often range from EUR 3 million to EUR 20 million.
What is the Innovate UK Horizon Europe guarantee scheme?
The Innovate UK guarantee scheme was introduced to cover UK participants in Horizon Europe calls during the period before formal UK association was confirmed. Under the guarantee, UKRI committed to fund UK participants in successful Horizon Europe bids if the EU did not. Since the UK formally associated in January 2024, the guarantee is less relevant for new calls but still applies to certain legacy applications submitted during the transition period.
How long does a typical Horizon Europe application process take?
From call publication to submission deadline, most Horizon Europe calls allow between three and five months. However, consortium building, partner negotiations, and technical planning ideally begin months before the call opens. After submission, evaluation typically takes five months, with grant agreement preparation taking another one to three months. In total, the journey from initial planning to project start often spans twelve to eighteen months.
What TRL range does Horizon Europe Cluster 5 typically fund?
Cluster 5 (Climate, Energy and Mobility) funds a broad range of technology readiness levels. Research and Innovation Actions (RIA) typically target TRL 3 to 5, covering proof of concept through to validation in a relevant environment. Innovation Actions (IA) generally target TRL 5 to 8, covering demonstration through to first-of-a-kind deployment. Some calls specify exact TRL entry and exit points in the topic description.