How to manage projects funded by Innovation Fund

The European Union’s Innovation Fund program is one of the most important funding programs supporting projects that promote a low-carbon industry. Securing funding is a significant achievement, but it is only the first step. The true key to success lies in effectively managing the project throughout its entire execution.

In this article, we provide a comprehensive guide on how to manage projects funded by the Innovation Fund program, highlighting the keys to ensuring compliance with requirements and guaranteeing that resources are aligned with project progress.

What to do after securing funding?

Congratulations on obtaining funding! But what now? Having your project approved is a major step, but the journey toward the expected results still lies ahead. If you have done a solid job during the proposal preparation phase, you will have a strong foundation for execution. However, success is not guaranteed merely by approval; continuous management and strict compliance with the established requirements are crucial to ensuring the project’s proper progress.

First of all, effective communication with the European Climate, Infrastructure, and Environment Executive Agency (CINEA) is essential to ensure that the project progresses as planned. This includes:

• Timely delivery of deliverables.
• Notifying CINEA of any deviations in the project’s implementation.
• Participation in periodic follow-up meetings proposed by CINEA.
• Since the reporting periods in the Innovation Fund are usually extensive, CINEA typically proposes periodic follow-up meetings where the consortium reports on the progress of various activities.

At Zabala Innovation, we prepare and support these meetings to ensure compliance with CINEA’s requirements. Transparency is key to maintaining the European Commission’s trust and ensuring continued funding.

How to manage an Innovation Fund project?

Given the complexity and scale of projects funded by the Innovation Fund, their management requires continuous monitoring. The program demands the preparation of numerous deliverables, as well as progress reports (semi-annual or annual) at different project phases to report on the activities performed during the reference period.

At Zabala Innovation, we have a flexible management model that adapts to the project’s pace and workload, ensuring that deliverables are prepared efficiently and in line with requirements.

From the initial milestones of Financial Close and construction, which require numerous reports and detailed plans, to the project operation milestones, our team is ready to provide the necessary support.

We also have a specialized financial team for the Innovation Fund, which can assist you in reviewing the Relevant Cost Calculator (the financial information Excel prepared by CINEA and submitted with the proposal) and the private financial model, ensuring both are aligned with the program’s relevant cost methodology.

Administrative management in the Innovation Fund

As with any European project, administrative management is essential to ensure resources are used optimally and project objectives are met.

Since Innovation Fund financing is based on the lump sum model, its financial and administrative management is simplified at first glance. However, this does not mean that the requirements are less demanding, as various reports and deliverables are still required to demonstrate milestone achievements to continue receiving funding. Thus, although specific records of actual incurred costs are not required, all information that may be requested to verify the eligibility of declared lump sum costs must be provided.

Additionally, beneficiaries must keep records and original documentation demonstrating the correct execution of the project, which may be requested up to 5 years after project completion.

At Zabala Innovation, we have worked with the lump sum financing model since the H2020 program. Our team will help you manage and secure lump sum funding efficiently, ensuring your project meets its milestones and delivers results on time.

Reporting periods: What should your report include to meet the requirements?

The Innovation Fund program requires periodic reports on the project’s status, which are essential to receive the agreed grant payments. These reports must cover technical and operational, financial, and environmental impact aspects. Specifically, during the project’s operation milestones, it is necessary to demonstrate how the project contributes to reducing greenhouse gas (GHG) emissions and to the transition to climate neutrality.

Key content of the periodic reports:

• Technical aspects: Progress in deploying innovative Net Zero technologies and key achievements, results, and impacts to date.
• Operational aspects, including permits, environmental, and health and safety aspects.
• Financial aspects: Report on financial and economic aspects (e.g., relevant costs, profitability, etc.).
• Environmental impact: Report estimating the potential of avoided GHG emissions (monitoring plan and achieved avoided GHG emissions).

What if the project is not progressing as expected?

As with any large-scale project, risk management is critical and should be carried out continuously throughout the project. However, if there are substantial or significant changes to the Grant Agreement (for example, changes affecting project outcomes, delays, or deviations from the planned progress), options exist to amend the agreement. If a technical or operational issue prevents a project phase from progressing as planned and a financial milestone cannot be reached, you can request an extension of the project’s duration.

It is crucial to address these issues early, communicate any deviations transparently, and work closely with CINEA to ensure that changes are accepted without compromising funding.

The value of expert support

At Zabala Innovation, we can help you successfully manage your Innovation Fund project, offering continuous support throughout the project life cycle.

We deeply understand the challenges and demands of this program. We have submitted more than 90 projects since the first call and secured over €1.175 billion for our clients.

Leave nothing to chance; ensure compliance and operational efficiency in your project.

Contact us and let’s talk!