Upscaling innovative payments to support farmers in the delivery of agri-environment-climate public goods

This opportunity is part of the Horizon Europe program, specifically identified as HORIZON-CL6-2025-03-GOVERNANCE-02. It focuses on "Upscaling innovative payments to support farmers in the delivery of agri-environment-climate public goods." The initiative aims to create and promote new governance and business models in the agricultural sector that reward farmers for environmental services, aligning with the goals of the Green Deal and the Common Agricultural Policy (CAP).

Eligible applicants include a consortium of diverse stakeholders such as small and medium-sized enterprises (SMEs), farmers, researchers, and businesses. The inclusion of Social Sciences and Humanities (SSH) disciplines is strongly encouraged for addressing the social and economic dimensions of the proposed solutions.

The primary funding mechanism is a grant, known as a HORIZON Action Grant Budget-Based model, with project funding amounts ranging between 3 million and 16 million Euros. The application process is a single-stage open call, with a submission deadline set for September 24, 2025. The expected outcome for funded projects is to reach a Technology Readiness Level (TRL) of 7-8 by the project's end, with activities that can commence at various TRLs.

Successful proposals should focus on developing, testing, and evaluating effective payment schemes for environmental services. They are expected to explore the mobilization of private funding and assess the socio-economic implications for long-term viability. Additionally, projects should aim to enhance participation among farmers and businesses across different agricultural contexts.

Key objectives include fostering greater societal benefits through targeted support of agri-environment-climate public goods and overcoming barriers to the scalability of innovative payment mechanisms. Proposals should engage in real-life conditions to test these schemes and ensure strong collaborations with existing Horizon Europe projects and other related initiatives.

The total budget allocated to this opportunity is set at 12 million Euros, with the anticipation of awarding approximately two grants. Specific conditions regarding eligibility, governance, and application processes are outlined, emphasizing a multi-actor approach and the need for consortium partnerships.

In summary, this Horizon Europe call seeks to enhance innovative payment systems for environmental services provided by farmers, ensuring sustainable practices and contributing to broader climate and biodiversity goals while promoting a collaborative approach among diverse stakeholders.

This is a Horizon Europe call, specifically HORIZON-CL6-2025-03-GOVERNANCE-02, focusing on "Upscaling innovative payments to support farmers in the delivery of agri-environment-climate public goods." It is a HORIZON-IA (Innovation Action) with a HORIZON Action Grant Budget-Based [HORIZON-AG] Model Grant Agreement. The call is currently open for submission with a single-stage deadline. The opening date was May 6, 2025, and the deadline for submission is September 24, 2025, at 17:00:00 Brussels time.

The expected outcome of this call is to contribute to the development and adoption of effective governance and competitive business models in line with the climate action and biodiversity objectives of the Green Deal and the Common Agricultural Policy (CAP). This involves upscaling innovative payment mechanisms using result-based, collective, or spatially coordinated approaches to support environmental services provided by farmers and promote the transition to more resilient and sustainable farming systems. The successful proposal should positively impact societal transformation, community empowerment, and participation in support of the green transition.

The project results are expected to lead to the following outcomes:

1.  Clear understanding among policymakers, businesses, farmers, and other stakeholders regarding the role of environmental services in a flourishing society, encouraging their engagement in payment schemes that ensure long-term financing at scale.

2.  Improved knowledge and innovative tools for these stakeholders to develop, implement, and upscale payment schemes adapted to diverse contexts.

3.  Widespread and long-term participation of farmers and businesses from various farming contexts in innovative payment schemes.

4.  Greater societal benefits from targeted support towards delivering agri-environment-climate public goods, resulting in positive social, economic, biodiversity, and climate outcomes.

The scope of the call emphasizes the importance of payments for environmental services as economic incentives for farmers' voluntary interventions that contribute to public goods. It acknowledges the existing research and practical experiences that provide guidance on cost-effective designs. The call aims to overcome barriers to upscaling and long-term implementation of result-based, collective, or spatially coordinated approaches. It highlights the need for building institutional, monitoring, funding, and financing capacity to enhance synergies between economic viability, environmental effectiveness, and longevity. Mobilizing the private sector in these payment schemes is seen as crucial to addressing these barriers.

Proposals should:

1.  Develop, improve, test, pilot, and evaluate payment schemes in real-life conditions, considering diverse farming contexts.

2.  Focus on mobilizing private funding and assessing the social and economic implications of the schemes for long-term implementation and financial viability.

3.  Analyze the role of agriculture and food value chains in supporting farmers' provision of environmental services and develop approaches for fair remuneration.

4.  Develop and apply robust, cost-effective monitoring of environmental services provided by farmers.

5.  Identify barriers and enablers for implementing and upscaling payment schemes and propose effective solutions, building on existing knowledge.

6.  Support capacity building, training, reskilling, and education on the technical, financial, legal, and administrative aspects of contractual arrangements.

Proposals must ensure complementarities with ongoing Horizon Europe projects, including the Mission “A Soil Deal for Europe,” and capitalize on existing research findings and tools. Synergies with other LIFE projects, EU-funded studies, pilot projects, and processes should also be ensured.

A dedicated task, resources, and a plan for collaboration with other projects selected under this topic are required, including participation in joint activities, workshops, and communication activities.

The Joint Research Centre (JRC) may participate in testing payment schemes through experiments.

Proposals must implement the ‘multi-actor approach’, forming a consortium with a balanced mix of farmers, researchers, and businesses. Involvement of SMEs, particularly farmers, is strongly encouraged for developing, improving, testing, and piloting solutions. Financial support to third parties (FSTP) is an option to engage SMEs, with a maximum of 10% of EU funding allocated for this purpose, and a maximum of EUR 60 000 to each third party. The selection process for these entities must be defined.

The topic requires the effective contribution of Social Sciences and Humanities (SSH) disciplines.

The call specifies several general conditions related to admissibility, eligible countries, financial and operational capacity, evaluation and award processes, and the legal and financial setup of grants. Activities are expected to achieve a Technology Readiness Level (TRL) of 7-8 by the end of the project.

Application forms, evaluation templates, guidance documents, and model grant agreements are available in the Submission System and through provided links. Additional documents include the Horizon Europe Main Work Programme 2023-2025 and related annexes, the Horizon Europe Programme Guide, and various EU financial regulations and guidelines.

The total budget allocated to this topic is EUR 12 000 000, and it is anticipated that approximately 2 grants will be awarded. There are 13 partner search announcements available for this topic.

In summary, this Horizon Europe call seeks to fund projects that can upscale innovative payment mechanisms for environmental services provided by farmers, aligning with the Green Deal and CAP objectives. It emphasizes the importance of private sector involvement, robust monitoring, and a multi-actor approach to achieve sustainable and positive outcomes for society, the economy, biodiversity, and the climate. The call encourages proposals that develop, test, and implement payment schemes, mobilize private funding, and address barriers to upscaling, ultimately contributing to a just and fair remuneration of farmers for their environmental services.

Eligible Applicant Types: The eligible applicant types for this opportunity include farmers, researchers, businesses, and SMEs. The call specifically encourages the involvement of SMEs, particularly farmers, in developing, improving, testing, and/or piloting the proposed solutions. The Joint Research Centre (JRC) may participate as a member of the consortium.

Funding Type: The primary financial mechanism is a grant, specifically a HORIZON Action Grant Budget-Based [HORIZON-AG]. Beneficiaries may also provide financial support to third parties in the form of grants, with a maximum amount of EUR 60,000 per third party.

Consortium Requirement: The opportunity requires a consortium of multiple applicants. The proposals must implement the multi-actor approach, with a consortium based on a balanced mix of actors with complementary knowledge, including farmers, researchers, and businesses.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility includes EU member states and associated countries. 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 agriculture/food, climate, and environment sectors, focusing on the development and upscaling of innovative payment mechanisms for environmental services provided by farmers. It also involves the effective contribution of Social Sciences and Humanities (SSH) disciplines.

Mentioned Countries: No specific countries are mentioned, but the opportunity is open to EU member states and associated countries.

Project Stage: The expected maturity of the project is Technology Readiness Level (TRL) 7-8 by the end of the project. Activities may start at any TRL.

Funding Amount: The funding amounts vary depending on the specific topic within the call, ranging from EUR 3,000,000 to EUR 16,000,000.

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 grants. They may also provide financial support to third parties in the form of grants, up to EUR 60,000 per third party.

Application Stages: The application process consists of a single stage.

Success Rates: The success rates are not explicitly mentioned, but the indicative number of grants is provided for each topic, allowing for an estimation of the potential success rate based on the number of applications received.

Co-funding Requirement: The information provided does not explicitly state whether co-funding is required.

Summary:

This Horizon Europe call focuses on "Upscaling innovative payments to support farmers in the delivery of agri-environment-climate public goods." It aims to promote the development and adoption of effective governance and competitive business models in the agricultural sector. The core idea is to upscale innovative payment mechanisms that reward farmers for providing environmental services, aligning with the objectives of the Green Deal and the Common Agricultural Policy (CAP).

The call seeks proposals that develop, test, and pilot payment schemes for environmental services, emphasizing result-based, collective, or spatially coordinated approaches. A key focus is on mobilizing private funding and assessing the socio-economic implications of these schemes to ensure long-term financial viability.

Eligible applicants include a consortium of diverse actors such as farmers, researchers, businesses, and SMEs. The call encourages the involvement of Social Sciences and Humanities (SSH) disciplines to address the social and economic aspects of the proposed solutions.

The funding is provided through Horizon Innovation Actions (IA) grants, with amounts ranging from 3 million to 16 million EUR depending on the specific topic. The projects are expected to reach Technology Readiness Level (TRL) 7-8 by completion. The application process is a single-stage submission, with a deadline of September 24, 2025.

In essence, this call is about finding innovative ways to pay farmers for the environmental benefits they provide, ensuring sustainable farming practices, and contributing to broader climate and biodiversity goals. It requires a collaborative, multi-actor approach and emphasizes the importance of private sector involvement and long-term financial sustainability.