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Better understanding incentives for private sector financing of adaptation solutions

HORIZON-MISS-2025-01-CLIMA-05OpenCall for Proposal1 month agoSeptember 24th, 2025May 6th, 2025

Overview

This EU funding opportunity, known as the HORIZON-MISS-2025-01 related to the Adaptation to Climate Change Mission, aims to encourage private sector financing for climate adaptation solutions. It is part of the Horizon Europe program, specifically targeting research and innovation projects that will enhance private investment in adaptation measures.

Eligible applicants include private sector actors such as businesses and financial institutions, research institutions, and public-private partnerships. These consortia must involve a minimum of three participants from different EU Member States or Associated Countries. The funding is provided as a grant under the Horizon Europe framework with a total budget allocation of approximately €233.65 million, where specific topics like HORIZON-MISS-2025-01-CLIMA-01 have a dedicated budget of about €17.65 million.

The primary focus areas include climate adaptation solutions, particularly those leveraging nature-based strategies, and engaging cross-sector systems such as health, water management, and ecosystems. Projects should aim to develop innovative methodologies for assessing economic viability, calculating adaptation costs, identifying barriers to financing, and producing at least eight case studies showcasing solutions that require funding but have yet to secure it.

The application process features a single-stage, open call, with proposals due by September 24, 2025. It does not explicitly require co-funding, as Horizon Europe grants typically cover up to 100% of eligible costs. The nature of support is monetary through a lump sum grant, and projects will be expected to participate in knowledge-sharing with relevant stakeholders.

Strategically, this initiative aligns with the EU's Adaptation Strategy and Green Deal, promoting economic frameworks that bolster private investment in climate resilience. It emphasizes social sciences and humanities integration to effectively engage various stakeholders in the implementation process. The deadline for submissions is set for September 24, 2025, following an opening date on May 6, 2025.

Detail

This EU funding opportunity aims to mobilize the private sector to finance adaptation solutions in support of the European Green Deal, the Adaptation Strategy, and the EU Mission on Adaptation to Climate Change. The call, Supporting the implementation of the Adaptation to Climate Change Mission (HORIZON-MISS-2025-01), is part of the Horizon Europe (HORIZON) programme.

The expected outcomes of the projects funded under this opportunity are: Increased private sector financing of adaptation solutions through improved investment concepts, financing mechanisms, and business models. Enhanced private sector engagement with the Adaptation Mission, with businesses and the financial sector actively participating in accelerating climate adaptation and contributing knowledge to the Mission Community of Practice.

The scope of the funding opportunity includes: Identifying economic (non-financial) incentives for the private sector to finance adaptation solutions. Developing calculations and methodologies for assessing the economic rationale for financing adaptation solutions, including calculations of risks/losses from climate change, economic benefits of adaptation solutions, and overall cost/benefit analyses. Overcoming barriers to private sector financing of climate adaptation solutions and improving the economic rationale for such investments. Testing innovative ways to incentivize the private sector to finance adaptation solutions through case studies. The projects should develop a minimum of 8 case studies in 3 different Member States / Associated Countries, focusing on adaptation solutions that require financing but have not yet secured it. At least 3 of these case studies should focus on nature-based adaptation solutions. The case studies should cover a variety of climate hazards and key community systems identified in the Mission Implementation Plan, such as critical infrastructure, health & well-being, water management, land use & food systems, and ecosystems. Project consortia should include relevant private sector actors from the business and financial sectors, with a commitment to contribute to the deployment of identified solutions or support the development of business plans for climate resilience investments. The effective contribution of social sciences and humanities (SSH) disciplines is required, including the involvement of SSH experts and institutions. Project results should be promoted towards the Mission’s Community of Practice to allow broad replication, using formats adapted to the private sector audience. Proposals should include a mechanism and resources for operational links and collaboration with the Mission Implementation Platform and other knowledge platforms like Climate-ADAPT. Projects will be expected to participate in the Mission’s Community of Practice and share knowledge. Projects will be requested to contribute to the monitoring of progress towards the Mission's objectives and provide data for visualizing the Mission's progress in Europe. Applicants should acknowledge these requests and account for them in their proposal with adequate resources and budget. Proposals should build on knowledge from and connect to other relevant projects funded by Horizon Europe, LIFE, Technical Support Instrument (TSI), and other EU and national funding programmes.

The general conditions for this funding opportunity include: Admissibility conditions related to proposal page limits and layout, as described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes and Part B of the Application Form. Eligibility criteria for countries, as described in Annex B of the Work Programme General Annexes and the Horizon Europe Programme Guide. Other eligibility conditions, as described in Annex B of the Work Programme General Annexes. Financial and operational capacity and exclusion criteria, as described in Annex C of the Work Programme General Annexes. Evaluation and award criteria, scoring, and thresholds, as described in Annex D of the Work Programme General Annexes. Submission and evaluation processes, as described in Annex F of the Work Programme General Annexes and the Online Manual. Indicative timeline for evaluation and grant agreement, as described in Annex F of the Work Programme General Annexes. Legal and financial setup of the grants, with eligible costs taking the form of a lump sum as defined in the Decision of 7 July 2021. Grant agreement information as described in Annex G of the Work Programme General Annexes. Specific conditions are described in the specific topic of the Work Programme.

Application forms, evaluation forms, and model grant agreements are available in the Submission System. Application form templates include: Standard application form (HE RIA, IA), Standard application form (HE RIA IA Stage 1), Standard application form (HE CSA), Standard application form (HE CSA Stage 1), Standard application form (HE RI), Standard application form (HE PCP). Evaluation form templates will be used with the necessary adaptations, including: Standard evaluation form (HE RIA, IA), Standard evaluation form (HE CSA), Standard evaluation form (HE PCP PPI), Standard evaluation form (HE COFUND), Standard evaluation form (HE FPA). Guidance documents include: HE Programme Guide, HE MGA, HE Unit MGA, Lump Sum MGA, Operating Grants MGA, Detailed budget table (HE LS), Information on financial support to third parties (HE), Information on clinical studies (HE), Guidance: "Lump sums - what do I need to know?". Additional documents include: HE Main Work Programme 2023–2025 – 1. General Introduction, HE Main Work Programme 2023–2025 – 12. Missions, HE Main Work Programme 2023–2025 – 13. General Annexes, HE Programme Guide, HE Framework Programme 2021/695, HE Specific Programme Decision 2021/764, EU Financial Regulation 2024/2509, Decision authorising the use of lump sum contributions under the Horizon Europe Programme, Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment, EU Grants AGA — Annotated Model Grant Agreement, Funding & Tenders Portal Online Manual, Funding & Tenders Portal Terms and Conditions, Funding & Tenders Portal Privacy Statement.

The budget overview for the HORIZON-MISS-2025-01-CLIMA call in 2025 is as follows: HORIZON-MISS-2025-01-CLIMA-01 - HORIZON-RIA: 17,650,000 EUR, single-stage, indicative number of grants: 1. HORIZON-MISS-2025-01-CLIMA-02 - HORIZON-RIA: 25,000,000 EUR, single-stage, indicative number of grants: 1. HORIZON-MISS-2025-01-CLIMA-03 - HORIZON-IA: 30,000,000 EUR, single-stage, indicative number of grants: 3 (around 10,000,000 EUR each). HORIZON-MISS-2025-01-CLIMA-04 - HORIZON-IA: 30,000,000 EUR, single-stage, indicative number of grants: 3 (around 10,000,000 EUR each). HORIZON-MISS-2025-01-CLIMA-05 - HORIZON-RIA: 6,000,000 EUR, single-stage, indicative number of grants: 2 (around 3,000,000 EUR each). HORIZON-MISS-2025-01-CLIMA-06 - HORIZON-PCP: 5,000,000 EUR, single-stage, indicative number of grants: 1. The opening date for submissions is May 6, 2025, and the deadline is September 24, 2025, at 17:00:00 Brussels time.

There are partner search announcements available for this topic. LEARs, Account Administrators, and self-registrants can publish partner requests on the Funding & Tenders Portal.

To start the submission process, applicants should access the Electronic Submission Service through the Funding & Tenders Portal and select the appropriate type of action and model grant agreement.

In summary, this funding opportunity seeks to encourage private sector investment in climate adaptation solutions by identifying economic incentives, overcoming barriers to financing, and testing innovative approaches through case studies. It requires collaboration between researchers, businesses, and financial institutions, with a focus on social sciences and humanities, and alignment with the EU's Green Deal and Adaptation Strategy. The funding is provided as a lump sum, and the submission deadline is September 24, 2025.

This opportunity is about getting the private sector more involved in funding climate adaptation solutions. Currently, most adaptation projects rely on public money. But climate change is going to cause economic damage, so it makes sense for businesses to invest in being prepared. This grant wants projects to figure out how to make climate adaptation projects attractive to private investors. This means finding ways to calculate the economic benefits of adaptation, overcoming the obstacles that keep businesses from investing, and testing these ideas with real-world examples. The EU wants these projects to work with the Mission Implementation Platform and share what they learn with others. Ultimately, the goal is to shift the mindset of the private sector so they see climate adaptation as a worthwhile investment, not just a cost.

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Breakdown

Eligible Applicant Types: The eligible applicant types are not explicitly defined in the provided text. However, based on the context of Horizon Europe Research and Innovation Actions (RIA) and Innovation Actions (IA), eligible applicants typically include universities, research institutes, SMEs, large enterprises, and other organizations capable of conducting research and innovation activities. The call also mentions the need for participation of relevant private sector actors from the business and financial sectors.

Funding Type: The primary financial mechanism is a grant, specifically a HORIZON Lump Sum Grant, under the Horizon Europe Programme. There are also Pre-commercial Procurement actions.

Consortium Requirement: The opportunity requires a consortium of multiple applicants. The text specifies that "project consortia should include participation of relevant private sector actors from the business and financial sectors."

Beneficiary Scope (Geographic Eligibility): The geographic eligibility includes EU Member States and Associated Countries. The text also mentions that "A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects."

Target Sector: The program targets the climate sector, specifically focusing on adaptation to climate change and mobilizing private sector financing for adaptation solutions. It also involves social sciences and humanities (SSH) disciplines. Key community systems identified in the Mission Implementation Plan include critical infrastructure, health & well-being, water management, land use & food systems, and ecosystems.

Mentioned Countries: The opportunity mentions EU Member States and Associated Countries. It also refers to "non-EU/non-Associated Countries" that may have specific provisions for funding participation.

Project Stage: The expected maturity of the project for this opportunity includes research, development, and demonstration, with a focus on testing innovative approaches through case studies. The actions include both Research and Innovation Actions (RIA) and Innovation Actions (IA), suggesting a range from development to demonstration.

Funding Amount: The funding amounts vary depending on the specific topic within the call:
HORIZON-MISS-2025-01-CLIMA-01: around €17,650,000
HORIZON-MISS-2025-01-CLIMA-02: around €25,000,000
HORIZON-MISS-2025-01-CLIMA-03: around €10,000,000 (3 grants)
HORIZON-MISS-2025-01-CLIMA-04: around €10,000,000 (3 grants)
HORIZON-MISS-2025-01-CLIMA-05: around €3,000,000 (2 grants)
HORIZON-MISS-2025-01-CLIMA-06: around €5,000,000

Application Type: The application type is an open call with a single-stage submission process.

Nature of Support: Beneficiaries will receive money in the form of a lump sum grant.

Application Stages: The application process is a single-stage process.

Success Rates: The success rates are not explicitly mentioned, but the indicative number of grants for each topic provides some insight into the potential success rate.

Co-funding Requirement: The text does not explicitly state a co-funding requirement. However, the emphasis on private sector financing suggests that leveraging private investment is a key objective.

Summary: This Horizon Europe call, "Supporting the implementation of the Adaptation to Climate Change Mission (HORIZON-MISS-2025-01)," aims to mobilize the private sector to finance climate adaptation solutions. The call seeks research and innovation projects that can identify economic incentives for private sector investment in adaptation, develop methodologies for calculating the economic rationale of adaptation solutions, and overcome barriers to private financing. Projects are expected to test innovative approaches through case studies in multiple EU Member States and Associated Countries, with a focus on nature-based solutions and key community systems. The call encourages the participation of private sector actors in project consortia and collaboration with the Mission Implementation Platform and other relevant knowledge platforms. Funding is provided as lump sum grants, and the call is open to a wide range of eligible organizations, including universities, research institutes, SMEs, and large enterprises. The overall goal is to increase private sector engagement in climate adaptation and accelerate the implementation of adaptation measures across Europe. The call includes six specific topics, each with its own budget and focus, ranging from research and innovation actions to pre-commercial procurement. The opening date for submissions is May 6, 2025, and the deadline is September 24, 2025.

Short Summary

Impact
The grant aims to mobilize private sector financing for climate adaptation solutions by identifying economic incentives and developing methodologies for assessing the economic rationale for such investments.
Applicant
Applicants should possess expertise in climate adaptation, economic analysis, and the ability to conduct case studies involving private sector engagement.
Developments
Funding will support projects focused on climate adaptation solutions, particularly those requiring private sector financing and involving nature-based solutions.
Applicant Type
This funding is designed for private sector actors, research institutions, and NGOs involved in climate adaptation and economic analysis.
Consortium
A consortium is required, including participation from relevant private sector actors across at least three EU Member States or Associated Countries.
Funding Amount
The funding amount per project ranges from €1,000,000 to €5,000,000, with a total budget of approximately €17.65 million allocated for this call.
Countries
The funding is relevant for EU Member States and Associated Countries, as projects must involve case studies in at least three different countries.
Industry
The funding targets the climate adaptation sector, specifically under the EU Mission on Adaptation to Climate Change.