The Clean Industrial Deal and its impact on R&D&I funding

Europe is at a turning point. At the end of last month, the European Commission presented the Clean Industrial Deal, an ambitious package of measures that, with over €100 billion at stake, promises to transform European industry into a benchmark for sustainability and innovation. But beyond the announcements, the key question for the European innovation ecosystem is: how will this new framework affect funding for R&D&I projects? The answer is as promising as it is complex.

The Clean Industrial Deal establishes a new Clean Industry State Aid Framework (CISAF) that will replace the current Temporary Crisis and Transition Framework from 2026 onwards. This reform promises to streamline the approval of public funds in each Member State for projects related to renewable energy, industrial decarbonisation, and the manufacturing of clean technologies. For researchers and companies dedicated to innovation, this means faster access to funding but also increased competition for these resources.

Brussels’ message is clear: the green transition cannot wait, and those who invest in R&D&I in this field will have more funding opportunities. However, not all projects will receive support. The key will lie in demonstrating real impact, scalability, and alignment with the EU’s climate objectives. This will require companies and research centres to structure more robust proposals, with clear implementation strategies and return on investment.

The challenge of attracting private capital

One of the most interesting aspects of the Clean Industrial Deal is the creation of an Industrial Decarbonisation Bank, which aims to mobilise up to €100 billion by combining European funds with private investment. This represents a great opportunity for R&D&I, as new financial instruments will be made available to reduce the risk of investing in clean technologies.

The problem until now has been the lack of incentives for the private sector to invest in sustainable innovation on a large scale. Public funding is essential, but without private capital, there can be no true industrial transformation. The EU appears to have taken this into account and has designed a scheme where R&D&I projects in their more mature stages will not rely exclusively on grants but will also have access to guarantees and financial mechanisms that reduce uncertainty.

This opens up a new scenario in which tech startups and emerging companies could benefit enormously, provided they know how to seize these opportunities and present projects with high commercial viability.

Focus on Horizon Europe and the Innovation Fund

Another key point is the creation of a new specific call within Horizon Europe, aimed at stimulating research and innovation in renewable energy, industrial decarbonisation, and clean technologies. Horizon Europe is already known for being the most important funding programme for R&D&I in Europe, and this new specific call promises to attract even more innovative projects in these areas, especially in their final development and demonstration phases. Although the specific conditions have not yet been detailed, this announcement reinforces the idea that the Clean Industrial Deal is not just a plan for industry but also a boost for the scientific and technological community.

The Clean Industrial Deal also strengthens the Innovation Fund programme, allocating 6 billion euros to it in 2025 alone. This measure is particularly relevant for R&D&I projects, as the Innovation Fund has been a key source of funding for innovative initiatives in the field of sustainability. Moreover, the creation of the aforementioned Industrial Decarbonisation Bank will not only increase the funds available but also provide a more structured and specialised framework for funding these projects, building on the recent experience of the two auctions for renewable hydrogen production within the framework of the European Hydrogen Bank.

The agreement also modifies the InvestEU Regulation to increase the amount of financial guarantees that this programme can offer to support investments in clean technologies, clean mobility, and waste reduction. This modification is essential to reduce the risk associated with private investments in these sectors, which in turn will encourage more companies to invest in R&D&I projects. The mobilisation of up to €50 billion in additional funding thanks to these financial guarantees is a sign of the European Commission’s commitment to sustainability and innovation.

A historic opportunity with conditions

The Clean Industrial Deal represents an unprecedented opportunity for R&D&I funding in Europe. Massive funds, innovative investment mechanisms, and a clear commitment to the green transition have been put on the table. The success of this agreement, however, will depend on three key factors.

On the one hand, there is the effectiveness and efficiency in the distribution of funds: if the money does not reach the right projects or arrives too late, the opportunity to transform the industry will be lost. On the other hand, it will be necessary to attract private investment, since without the involvement of the financial and business sectors, R&D&I in clean technologies will remain overly dependent on public funding. Finally, it will be essential to continue removing bureaucratic barriers to further simplify access.

Europe has the money and the strategy. Now it needs to make it work.