Close X

Call: Improved economic methods for decision-making on climate and environmental policies

Acronym HE-CL5-D1
Type of Fund Direct Management
Description of programme
"Horizon Europe - Cluster 5 - Destination 1: Climate sciences and responses for the transformation towards climate neutrality"

Europe has been at the forefront of climate science and should retain its leadership position to support EU policies as well as international efforts for a global uptake of climate action in line with the Paris Agreement and the Sustainable Development Goals (SDGs), including biodiversity objectives. Advancing climate science and further broadening and deepening the knowledge base is essential to inform the societal transition towards a climate neutral and climate resilient society by 2050, as well as towards a more ambitious greenhouse gas reduction target by 2030. It will involve research that furthers our understanding of past, present and expected future changes in climate and its implications on ecosystems and society, closing knowledge gaps, and develops the tools that support policy coherence and the implementation of effective mitigation and adaptation solutions. Due to the inherent international character of this subject, international collaboration is encouraged for topics under this destination.

The activities implemented under this section will enable the transition to a climate-neutral and resilient society and economy through improving the knowledge of the Earth system and the ability to predict and project its changes under different natural and socio-economic drivers, including a better understanding of society’s response and behavioural changes, and allowing a better estimation of the impacts of climate change and the design and evaluation of solutions and pathways for climate change mitigation and adaptation and related social transformation.

This Destination contributes directly to the Strategic Plan’s Key Strategic Orientation C ”Making Europe the first digitally enabled circular, climate-neutral and sustainable economy through the transformation of its mobility, energy, construction and production systems” and the impact area “Climate change mitigation and adaptation”.

In line with the Strategic Plan, the overall expected impact of this Destination is to contribute to the “Transition to a climate-neutral and resilient society and economy enabled through advanced climate science, pathways and responses to climate change (mitigation and adaptation) and behavioural transformations”, notably through:

  1. Advancing knowledge and providing solutions in the any of following areas: Earth system science; pathways to climate neutrality; climate change adaptation including climate services; social science for climate action; and better understanding of climate-ecosystems interactions.
  2. Contributing substantially to key international assessments such as those of the Intergovernmental Panel on Climate Change (IPCC) or the European Environment Agency (e.g. European environment state and outlook reports, SOER).
  3. Strengthening the European Research Area on climate change.
  4. Increasing the transparency, robustness, trustworthiness and practical usability of the knowledge base on climate change for use by policy makers, practitioners, other stakeholders and citizens.

Coordination and synergies between activities supported under Destination 1, as well as in other Destinations and Clusters, and in particular complementarities with Cluster 4 and Cluster 6 should be taken into account by planning for adequate resources for co-ordination and clustering activities. Following a systemic approach, Destination 1 concentrates on activities related to climate science and modelling, whereas Cluster 6 supports R&I in the areas covered by Cluster 6, notably on the implementation of climate change mitigation and adaptation solutions.

Link Link to Programme
Improved economic methods for decision-making on climate and environmental policies
Description of call
"Improved economic methods for decision-making on climate and environmental policies"

Expected Outcome

Project results are expected to contribute to all of the following expected outcomes:

  • Enhanced operational capacities of the methods of economic analysis for climate and environmental policies, leading to their increased usage in the preparation of decision-making on climate and environmental policies. This includes, but is not limited to, improved cost-benefit, multi-criteria and cost-effectiveness analysis.
  • Practical recommendations and conceptual guidelines for improved, methodologically transparent economic approaches and practices for public policy design and evaluation in the domain of climate and environment.
  • Proposals on ways to produce a better reflection of the specificities and risks of environmental challenges in public policy and promoting precautionary responses.
  • Enhanced efficiency, effectiveness and legitimacy of European regulatory and policy decisions by providing decision-makers, stakeholders and the public with more realistic ability to systematically assess the options and their consequences.
  • Improved capacity for decision making under the conditions of (extreme) uncertainty.
  • New evidence on the effectiveness of various regulatory strategies, instruments and approaches for climate and environmental policies.
  • Factual evidence and insights for the design and evaluation of the implementation of major European policies such as in the domain of the European Green Deal, New Generation Europe, national recovery plans, and other relevant policies.


Actions should focus on the improvement of methodologies, practices and techniques for conducting economic appraisal of environmental policies, taking into account the progress in relevant sciences and in the understanding of the limitations of the methodologies and tools used so far, notably in impact studies. The key environmental policies of interest under this topic are those addressing climate change and biodiversity loss and actions should foster integrated approaches for addressing these interdependent challenges. Innovative and out-of-the-box approaches are strongly encouraged.

Actions are expected to investigate limitations of mainstream economic theory and models used for environmental policy assessment, including the evaluation of appropriateness of cost-benefit and cost-effectiveness analyses. They should also consider alternative approaches that could be applied to assess environmental policies. Issues such as measurement of environmental/climate damages and the treatment of uncertainty, including overreliance on average and most likely outcomes as well as the non-linear features of climate-related risks are expected to be addressed. Other aspects that could be explored include short-termism, treatment of unpriced values, irreversibility, discounting, inclusiveness and socio-economic inequalities, and broader ethical issues such as inter-generational fairness.

The work should encompass in-depth ex-post evaluation of the actual performance of selected climate and environmental policies at European, national or regional level in order to identify their strengths and weaknesses and propose possible improvements in the underpinning methodologies for ex-ante assessments. Alternative approaches derived from the measurement of actual, realised costs and benefits of a representative sample of cases can also be considered.

Actions should also examine the performance of different types of regulatory strategies such as a comparison of market-based vs traditional (command and control) regulation, a comparison among different types of market-based approaches (taxes, emissions trading, green certificates, subsidies, etc.), evaluation of the performance of information-based mechanisms (such as labelling) for purposes of environmental policy-making. The analysis should take into account public acceptance dimension. Consortia should also explore innovative policy interventions (such as various types of incentive) that could be applied to encourage the adoption of more sustainable technologies and behaviours.

Applicants should take into account not only the advances in economic thinking, but also the evolution in behavioural insights, study of public and political acceptance, as well as progress in other relevant fields such as sociology, natural and political sciences, humanities, gender and intersectional studies, public health and disaster risk reduction, as well as key trends that have influenced the evolution of the European environmental policy-making. Lessons from the COVID-19 crisis should also be taken into account. Participation of and co-creation with relevant stakeholders and key actors should be part of the action, including in-depth contribution from social sciences and humanities to advance the understanding of the dynamics and the factors impacting the policy and political decision-making processes.

Finally, actions should formulate and implement strong dissemination plan towards key actors in relevant decision-making processes with an aim to testing the proposed methods in real conditions and towards educational institutions in order to facilitate broad cross-fertilisation of the insights created.

In response to this topic actions are expected to address the broader framework and methodologies for economic analysis of environmental policies and thus go well beyond the economic aspects of Integrated Assessment Models.

Synergies with other topics, in particular from Cluster 6 with respect to relevant biodiversity insights, should be explored and established over the duration of the project.

This topic requires the effective contribution of SSH disciplines and the involvement of SSH experts, institutions as well as the inclusion of relevant SSH expertise, in order to produce meaningful and significant effects enhancing the societal impact of the related research activities.

Cross-cutting Priorities:

Link Link to Call
Thematic Focus Research & Innovation, Technology Transfer & Exchange, Capacity Building, Cooperation Networks, Institutional Cooperation, Climate, Climate Change, Environment & Biodiversity, Administration & Governance, Clustering, Development Cooperation, Economic Cooperation
Funding area EU Member States
Overseas Countries and Territories (OCTs)
Origin of Applicant EU Member States
Overseas Countries and Territories (OCTs)
Eligible applicants Education and Training Centres, Federal State / Region / City / Municipality / Local Authority, Research Institution, Lobby Group / Professional Association / Trade Union, International Organization, Small and Medium Sized Enterprises, SMEs (between 10 and 249 employees), Microenterprises (fewer than 10 employees), NGO / NPO, Public Services, National Government, Other, Start Up Company, University, Enterprise (more than 250 employees or not defined), Association
Applicant details

eligible non-EU countries:

  • countries associated to Horizon Europe
At the date of the publication of the work programme, there are no countries associated to Horizon Europe. Considering the Union’s interest to retain, in principle, relations with the countries associated to Horizon 2020, most third countries associated to Horizon 2020 are expected to be associated to Horizon Europe with an intention to secure uninterrupted continuity between Horizon 2020 and Horizon Europe. In addition, other third countries can also become associated to Horizon Europe during the programme. For the purposes of the eligibility conditions, applicants established in Horizon 2020 Associated Countries or in other third countries negotiating association to Horizon Europe will be treated as entities established in an Associated Country, if the Horizon Europe association agreement with the third country concerned applies at the time of signature of the grant agreement.

  • low-and middle-income countries

Legal entities which are established in countries not listed above will be eligible for funding if provided for in the specific call conditions, or if their participation is considered essential for implementing the action by the granting authority.

Specific cases:

  • Affiliated entities - Affiliated entities are eligible for funding if they are established in one of the countries listed above.
  • EU bodies - Legal entities created under EU law may also be eligible to receive funding, unless their basic act states otherwise.
  • International organisations - International European research organisations are eligible to receive funding. Unless their participation is considered essential for implementing the action by the granting authority, other international organisations are not eligible to receive funding. International organisations with headquarters in a Member State or Associated Country are eligible to receive funding for ‘Training and mobility’actions and when provided for in the specific call conditions.
Project Partner Yes
Project Partner Details

Unless otherwise provided for in the specific call conditions , legal entities forming a consortium are eligible to participate in actions provided that the consortium includes:

  • at least one independent legal entity established in a Member State;and
  • at least two other independent legal entities, each established in different Member States or Associated Countries.
Further info

Proposal page limits and layout:

The application form will have two parts:

  • Part A to be filled in directly online  (administrative information, summarised budget, call-specific questions, etc.)
  • Part B to be downloaded from the Portal submission system, completed and re-uploaded as a PDF in the system

Page limit - Part B: 45 pages

Type of Funding Grants
Financial details
Expected EU contribution per projectThe Commission estimates that an EU contribution of around EUR 3.00 million would allow these outcomes to be addressed appropriately. Nonetheless, this does not preclude submission and selection of a proposal requesting different amounts.
Indicative budgetThe total indicative budget for the topic is EUR 6.00 million.
Typ of ActionResearch and Innovation Actions (RIA)
Funding rate100%
Submission Proposals must be submitted electronically via the Funding & Tenders Portal Electronic Submission System. Paper submissions are NOTpossible.

Register now and benefit from additional services - it is free of cost!


Published on 23.09.2022

Interreg Maritime - 5th Call

Interreg Maritime

Link to Call

Published on 14.09.2022

Perform EU

Creative Europe - Culture Strand

Link to Call
Loading Animation