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A complementary alternative to the Innovation Fund to finance industrial pilots
High technological maturity, strong market focus and robust financial viability: the new Clean Industrial Deal call explained
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A practical self-assessment for the call, which has a budget of €275 million
At a glance: the essentials of this article
The Clean Industrial Deal has launched a new funding line under Horizon Europe aimed at near-market industrial decarbonisation pilots, with €275 million available for projects in energy-intensive industries and clean technologies. The call, which closes on 15 September 2026, raises the bar in terms of the technical, industrial and financial requirements expected from proposals, bringing its criteria closer to those of the Innovation Fund programme.
The Clean Industrial Deal has introduced a new funding line within Horizon Europe focused not on early-stage decarbonisation ideas, but on industrial pilot projects close to deployment. Under this call, the European Commission has launched two innovation actions: one, with a budget of €125 million, for the decarbonisation of energy-intensive industries, and another, with €150 million, for clean technologies linked to climate action. Both are single-stage calls, with the deadline for proposal submission set for 15th September 2026. Indicative EU contributions per project range between €15 million and €25 million.
“The key question is not whether your technology is promising, but whether your pilot genuinely fits this new funding approach, whose criteria are increasingly aligned with those of the Innovation Fund programme,” warns Daniel Magni, Operations Coordinator for European projects at Zabala Innovation. In his view, to determine whether your pilot fits the Clean Industrial Deal call, it is worth asking yourself these ten questions.
If your pilot targets an energy-intensive plant or process, the energy-intensive industries topic covers three main areas: CCU/CCUS, the use of clean energy in production – electrification, hydrogen, storage and waste heat – and circularity and resource efficiency. By contrast, if your proposal strengthens a cleantech value chain, the clean technologies topic focuses on integrated net-zero energy systems, zero-emission generation and storage technologies, renewable fuels and CCU. In both cases, one main area must be selected; furthermore, under the cleantech topic, the European Commission is seeking a balanced portfolio across these three areas.
This call is not intended for low technology readiness levels (TRLs). Both topics start from TRL 6. The energy-intensive industries topic is expected to reach TRL 7–8 by the end of the project, while the clean tech topic is expected to reach TRL 8. If you are still validating your solution in a laboratory environment, without real integration or demonstrator design, then this call is still too early for you.
The logic of the call is industrial. In energy-intensive industries, applicants are expected to deliver operational first-of-a-kind demonstrators or optimise newly installed decarbonisation solutions. In clean tech, the objective is to bring the solution to full technological maturity and close to market. If your project does not foresee real demonstration, process integration or a clear route towards industrial deployment, then there is no fit.
This is the most demanding filter. The proposal must include a clear go/no-go milestone before the demonstration phase. To reach that point, the project must be able to deliver detailed engineering, techno-economic assessment, demonstrator permits, a complete business plan, a market-readiness strategy and the identification of the industrial partner that will lead deployment. In practice, this milestone is linked to the maturity stage prior to the final investment decision (FID) of an industrial project.
The Clean Industrial Deal call does not require permits to be fully secured at proposal stage, but it does require a credible route to obtaining them. The market-readiness strategy must identify regulatory barriers, permitting conditions, standards, capabilities, industrial integrators, intellectual property and market acceptance. If environmental, energy, planning or CO2 permits remain uncertain, the project is not yet mature enough.
Brussels insists that the consortium be industry driven. For energy-intensive industries, the consortium should preferably be small and manageable; for clean tech, manageable and, indicatively, no larger than ten participants, with the size justified by the value-chain segment covered. A strong technology provider alone is not enough: it must be clear which industrial player will bring the solution to market or implement it in a plant after the project ends.
Except where otherwise specified by the topic, Horizon Europe requires at least three independent legal entities from three different countries: one from an EU Member State and two others from Member States or Associated Countries. Under the cleantech topic, the proposal must also bring together an appropriate combination of suppliers, energy users and other value-chain actors. And there is one detail that should not be overlooked: as these are innovation actions, entities established in China are not eligible to participate.
The business plan must address the target market, EU and global market size, competition, financial projections, customer needs and competitive advantage. The market-readiness strategy must also include a full risk analysis and explain how investment for the next phase will be secured. Under the energy-intensive industries topic, the solution must additionally maintain a positive life-cycle assessment (LCA) and remain commercially viable under the expected regulatory framework at the end of the project.
The level of funding is significant, but so too is the financial and operational commitment required. Companies must be able to provide their share of co-financing, justify costs, mobilise internal resources and explain how the post-project phase will be financed.
The call is not only looking for technologies that decarbonise, but for projects that feed into a European deployment chain. The official text identifies among its expected impacts support for the competitiveness of the next generation of clean tech and decarbonised industry in the EU, expanded manufacturing capacity in Europe and stronger resilient value chains to reduce dependencies. This is why the proposal must explain what will be manufactured, integrated or scaled up in Europe, which suppliers or capabilities it activates and which dependencies it reduces.
If you have answered positively to all the questions above, you have a solid basis for competing under the Clean Industrial Deal call. Conversely, if you fall short on one or more of these points, your pilot may still be good, but it is not yet ready to apply. In that case, it is advisable to review the fit before moving forward.

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High technological maturity, strong market focus and robust financial viability: the new Clean Industrial Deal call explained

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Daniel Magni
European Projects Operations Coordinator

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