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  1. An institution, body, office or agency established by or based on the Treaty on European Union and the Treaties establishing the European Communities.

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Call key data

Better understanding incentives for private sector financing of adaptation solutions

Funding Program

Horizon Europe: Missions

Call number

HORIZON-MISS-2025-01-CLIMA-05

deadlines

Opening
06.05.2025

Deadline
24.09.2025 17:00

Funding rate

100%

Call budget

€ 6,000,000.00

Estimated EU contribution per project

€ 3,000,000.00

Link to the call

ec.europa.eu

Link to the submission

ec.europa.eu

Call content

short description

In support of the European Green Deal, the Adaptation Strategy and the EU Mission on Adaptation to Climate Change, project results are expected to pioneer ways to mobilise the private sector to finance adaptation solutions.

Call objectives

Financing was highlighted by 93% of the Mission Charter signatories as the biggest challenge their region or local authority face. This was not unexpected and financing for adaptation is also one of the key enabling conditions identified by the Mission Implementation Plan.

Adapting to the impacts of climate change requires mobilising significant resources, which can only be achieved by mobilising private and public funding alike. So far, the private sector involvement in financing implementation of adaptation measures and solutions has been quite limited. At this stage, climate adaptation generally relies to a large extent on some kind of public support.

As the impacts of climate change are expected to trigger significant economic losses and damages, which will affect the private sector in terms of increased financial strains and considerable risk (short-term and long-term), it is imperative that the private sector, including the financial sector, are part of the mind shift into acting for and funding climate preparedness. In this, the private sector needs to invest much more actively in climate adaptation efforts. This new mindset should include rethinking and redefining risk and responsibility for adverse effects, considering risk allocation and obligations across public and private actors.

The proposal should identify economic (non-financial) incentives for the private sector to finance adaptation solutions. The proposal should address all of the following aspects:

  • Developing calculations and the most appropriate methodologies for calculating the economic rationale for financing adaptation solutions, aimed at convincing the private sector to finance them. This could include, but is not limited to, the following: (i) calculations of the risks/losses caused by climate change; (ii) calculations of the economic benefits of the adaptation solutions across different time horizons (e.g. with new or retained revenues/contributions that the implementation of the adaptation solution could generate, avoided costs/losses, cost of inaction, lower insurance costs, attribution and monetisation of co-benefits (including social and environmental co-benefits)); and (iii) calculations of the overall cost/benefit.

Ideally, if all benefits are calculated, they can outweigh the costs. Such calculations and economic rationales may need to be different for the different climate risks and key community systems.

  • Identifying how to overcome in innovative ways the main barriers to the financing of climate adaptation solutions by the private sector (both from the investor and investee point of view) and how to improve the economic rationale and developing and test innovative ways to economically incentivise (in non-financial ways) the private sector to finance them. This could include an increased and improved range of investment concepts or strategies, financing mechanisms and/or business models, etc. These innovative ways may need to be different for the different climate risks and key community systems.
  • Testing the above by developing minimum 8 case studies, in 3 different Member States / Associated Countries. The case studies should work on adaptation solutions that require financing but have not yet found financing. Each case study should explicitly encompass a calculation of the economic rationale for financing (as per above) and, where in this calculation all benefits taken together do not exceed the cost and hence this is not a sufficient incentive, propose and test innovative ways to economically incentivise (in non-financial ways) the private sector to finance the proposed adaptation solutions. In at least 3 of the cases the adaptation solutions should be nature-based adaptation solutions. It will be considered as a positive element if the case studies cover a variety of climate hazards and key community key community systems identified in the Mission Implementation Plan, namely critical infrastructure, health & well-being, water management, land use & food systems, ecosystems.

To reasonably achieve the expected outcomes, the project consortia should include participation of relevant private sector actors from the business and financial sectors and their commitment to further contribute to the deployment of the solutions identified in the cases studies or to support the development of the business plan for the climate resilience investments beyond the duration of the project.

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Expected effects and impacts

Due to its nature, this topic requires the effective contribution of social sciences and humanities (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.

In addition to the standard dissemination obligations, the results of this action should be promoted towards the Mission’s Community of Practice, to allow broad replication. The format should be adapted to the target audience being the private sector, so presenting the case studies and the lessons learnt in a practical and attractive manner.

Proposals should include a mechanism and the resources to establish operational links and collaboration with the Mission Implementation Platform, and other relevant knowledge platforms such as Climate-ADAPT. Projects funded under this topic will get direct access to and will be expected to participate in the exchanges of the Mission’s Community of Practice, to the networking activities supported by the Mission Implementation Platform, and to share relevant knowledge to feed the work of the project stemming from HORIZON-MISS-2024-CLIMA-01-01. These networking and joint activities could, for example, involve the participation in joint workshops, the exchange of knowledge, the development and adoption of best practices, or joint communication activities.

In addition, projects will be requested to feed their results and contribute to the monitoring in place under the leadership of the Mission Implementation Platform on the progress towards the objectives of the Mission and provide information and data to contribute to the visualisation of the Mission progress in Europe.

Applicants should acknowledge these requests and already account for them in their proposal, making adequate provisions in terms of resources and budget to engage and collaborate with the Mission.

Finally, proposals should, also through the Mission Implementation Platform, build on knowledge from and connect to the other relevant projects funded by Horizon Europe, LIFE and Technical Support Instrument (TSI) and other EU and national funding programmes.

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Expected results

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

  • The private sector (in the broadest sense, including the business or financial sector, private investors, those that have available corporate social responsibility budget to invest, etc) is increasingly financing adaptation solutions. This can be for instance thanks to increased and improved range of investment concepts, financing mechanisms and/or business models.
  • The private sector engagement with the Adaptation Mission is stepped up, from a few businesses having signed the Mission Charter as Mission’s friends to businesses and the financial sector taking an active role in accelerating climate adaptation, including feeding knowledge to the Mission Community of Practice on best approaches.

Eligibility Criteria

Regions / countries for funding

EU Member States, Overseas Countries and Territories (OCT)
Moldova (Moldova), Albania (Shqipëria), Armenia (Հայաստան), Azerbaijan (Azərbaycan), Bosnia and Herzegovina (Bosna i Hercegovina / Босна и Херцеговина), Canada, Faeroes (Føroyar / Færøerne), Georgia (საქართველო), Iceland (Ísland), Israel (ישראל / إِسْرَائِيل), Kosovo (Kosova/Kosovë / Косово), Montenegro (Црна Гора), Morocco (المغرب), New Zealand (Aotearoa), North Macedonia (Северна Македонија), Norway (Norge), Serbia (Srbija/Сpбија), Tunisia (تونس /Tūnis), Türkiye, Ukraine (Україна), United Kingdom

eligible entities

EU Body, Education and training institution, Non-Profit Organisation (NPO) / Non-Governmental Organisation (NGO), Other, Private institution, incl. private company (private for profit), Public Body (national, regional and local; incl. EGTCs), Research Institution incl. University, Small and medium-sized enterprise (SME)

Mandatory partnership

Yes

Project Partnership

To be eligible for funding, applicants must be established in one of the following countries:

  • the Member States of the European Union, including their outermost regions
  • the Overseas Countries and Territories (OCTs) linked to the Member States
  • countries associated to Horizon Europe - see list of particpating countries

Only legal entities forming a consortium are eligible to participate in actions provided that the consortium includes, as beneficiaries, three legal entities independent from each other and each established in a different country as follows:

  • 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.

Any legal entity, regardless of its place of establishment, including legal entities from non-associated third countries or international organisations (including international European research organisations) is eligible to participate (whether it is eligible for funding or not), provided that the conditions laid down in the Horizon Europe Regulation have been met, along with any other conditions laid down in the specific call topic.

A ‘legal entity’ means any natural or legal person created and recognised as such under national law, EU law or international law, which has legal personality and which may, acting in its own name, exercise rights and be subject to obligations, or an entity without legal personality.

other eligibility criteria

Specific cases:

  • Affiliated entities (i.e. entities with a legal or capital link to a beneficiary which participate in the action with similar rights and obligations to the beneficiaries, but which do not sign the grant agreement and therefore do not become beneficiaries themselves) are allowed, if they are eligible for participation and funding.
  • Associated partners (i.e. entities which participate in the action without signing the grant agreement, and without the right to charge costs or claim contributions) are allowed, subject to any conditions regarding associated partners set out in the specific call conditions.
  • Entities which do not have legal personality under their national law may exceptionally participate, provided that their representatives have the capacity to undertake legal obligations on their behalf, and offer guarantees to protect the EU’s financial interests equivalent to those offered by legal persons.
  • Legal entities created under EU law (EU bodies) including decentralised agencies may be part of the consortium, unless provided for otherwise in their basic act.
  • International European research organisations are 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 or when provided for in the specific call/topic conditions. Other international organisations are not eligible to receive funding, unless provided for in the specific call/topic conditions, or if their participation is considered essential for implementing the action by the granting authority.
  • Joint Research Centre (JRC)— Where provided for in the specific call conditions, applicants may include in their proposals the possible contribution of the JRC but the JRC will not participate in the preparation and submission of the proposal. Applicants will indicate the contribution that the JRC could bring to the project based on the scope of the topic text. After the evaluation process, the JRC and the consortium selected for funding may come to an agreement on the specific terms of the participation of the JRC. If an agreement is found, the JRC may accede to the grant agreement as beneficiary requesting zero funding or participate as an associated partner, and would accede to the consortium as a member.
  • Associations and interest groupings — Entities composed of members (e.g. European research infrastructure consortia (ERICs)) may participate as ‘sole beneficiaries’ or ‘beneficiaries without legal personality’. However, if the action is in practice implemented by the individual members, those members should also participate (either as beneficiaries or as affiliated entities, otherwise their costs will NOT be eligible.
  • EU restrictive measures — Entities subject to EU restrictive measures under Article 29 of the Treaty on the European Union (TEU) and Article 215 of the Treaty on the Functioning of the EU (TFEU) as well as Article 75 TFEU, are not eligible to participate in any capacity, including as beneficiaries, affiliated entities, associated partners, third parties giving in-kind contributions, subcontractors or recipients of financial support to third parties (if any).
  • Legal entities established in Russia, Belarus, or in non-government controlled territories of Ukraine — Given the illegal invasion of Ukraine by Russia and the involvement of Belarus, there is currently no appropriate context allowing the implementation of the actions foreseen in this programme with legal entities established in Russia, Belarus, or in non-government controlled territories of Ukraine. Therefore, even where such entities are not subject to EU restrictive measures, such legal entities are not eligible to participate in any capacity. This includes participation as beneficiaries, affiliated entities, associated partners, third parties giving in-kind contributions, subcontractors or recipients of financial support to third parties (if any). Exceptions may be granted on a case-by-case basis for justified reasons.
    With specific regard to measures addressed to Russia, following the adoption of the Council Regulation (EU) 2024/1745 of 24 June 2024 (amending Council Regulation (EU) No 833/2014 of 31 July 2014) concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine, legal entities established outside Russia but whose proprietary rights are directly or indirectly owned for more than 50% by a legal person, entity or body established in Russia are also not eligible to participate in any capacity.
  • Measures for the protection of the Union budget against breaches of the principles of the rule of law in Hungary — Following the Council Implementing Decision (EU) 2022/2506, as of 16 December 2022, no legal commitments can be entered into with Hungarian public interest trusts established under the Hungarian Act IX of 2021 or any entity they maintain. Affected entities may continue to apply to calls for proposals and can participate without receiving EU funding, as associated partners, if allowed by the call conditions. However, as long as the Council measures are not lifted, such entities are not eligible to participate in any funded role (beneficiaries, affiliated entities, subcontractors, recipients of financial support to third parties, etc.).In case of multi-beneficiary grant calls, applicants will be invited to remove or replace that entity in any funded role and/or to change its status into associated partner. Tasks and budget may be redistributed accordingly.

Additional information

Topics

Administration & Governance, Institutional Capacity & Cooperation, 
Air Quality, Biodiversity & Environment, Climate & Climate Change, Water quality & management, 
Disaster Prevention, Resilience, Risk Management

Relevance for EU Macro-Region

EUSAIR - EU Strategy for the Adriatic and Ionian Region, EUSALP - EU Strategy for the Alpine Space, EUSBSR - EU Strategy for the Baltic Sea Region, EUSDR - EU Strategy for the Danube Region

UN Sustainable Development Goals (UN-SDGs)

Additional Information

Applications must be submitted electronically via the Funders & Tenders Portal electronic submission system (accessible via the topic page in the Search Funding & Tenders section). Paper submissions are NOT possible.

Applications must be submitted using the forms provided inside the electronic submission system (not the templates available on the topic page, which are only for information). The structure and presentation must correspond to the instructions given in the forms.

Applications must be complete and contain all parts and mandatory annexes and supporting documents.

The application form will have two parts:

  • Part A (to be filled in directly online) contains administrative information about the applicant organisations (future coordinator and beneficiaries and affiliated entities), the summarised budget for the proposal and call-specific questions;
  • Part B (to be downloaded from the Portal submission system, completed and then assembled and re-uploaded as a PDF in the system) contains the technical description of the project.

Annexes and supporting documents will be directly available in the submission system and must be uploaded as PDF files (or other formats allowed by the system).

The limit for a full application (Part B) is 50 pages.

Eligible costs will take the form of a lump sum as defined in the Decision of 7 July 2021 authorising the use of lump sum contributions under the Horizon Europe Programme – the Framework Programme for Research and Innovation (2021-2027) – and in actions under the Research and Training Programme of the European Atomic Energy Community (2021-2025). It is mandatory to submit a detailed budget table using the template available in the Submission system.

Call documents

Horizon Europe Work Programme 2025 - MissionsHorizon Europe Work Programme 2025 - Missions(1773kB)

Contact

EU Missions in Horizon Europe
RTD-HORIZON-EUROPE-MISSIONS@ec.europa.eu
Website

National Contact Points for Horizon Europe
Website

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