With the Innovation Fund SME call in the 2026 round (IF26), the European Commission is opening its first separate Innovation Fund call dedicated entirely to SMEs. The call supports small-scale projects that bring innovative low-carbon technologies, processes or products to market. The application process is also simpler than in the regular Innovation Fund calls. This puts European decarbonisation funding within reach of SMEs that have not previously used the Innovation Fund.

IF26 SME call

The IF26 SME call is the first edition of this new call and has two submission rounds. Round 1 is expected to open in December 2026 and close at the end of March 2027, with applications expected to be evaluated before June. Round 2 opens in April 2027 and closes at the end of September 2027, with evaluation before December. The total budget is expected to be € 200 million; how it will be divided between the two rounds has not yet been announced.

What is the Innovation Fund SME call?

The Innovation Fund is one of Europe’s largest funding programmes for innovative low-carbon technologies. Until now, SME projects competed in the regular Net-Zero Technologies call alongside projects from large industrial players. The SME call is a separate call with its own budget. Its application and reporting requirements are also tailored to the scale and capacity of SMEs.

Who can apply?

The Innovation Fund SME call call targets small-scale decarbonisation projects by SMEs. Based on current information, the following conditions apply:

• All applicants meet the EU definition of an SME. You can apply alone or as part of a consortium, provided that all partners are SMEs.
• The project’s capital expenditure (CAPEX) is between €2.5 million and €20 million.
• The project is located in an EU Member State, Norway, Iceland or Liechtenstein.
• The call is open to almost all sectors covered by the regular Innovation Fund call. The maritime sector is excluded, as it will have its own dedicated call.

Does your project involve higher capital expenditure? Then the regular Innovation Fund Net-Zero Technologies call is likely to be the most suitable route.

Which projects are eligible?

Projects from a wide range of sectors, such as renewable energy and storage, electrification and energy efficiency in industry, waste heat recovery, carbon capture and utilisation, low-carbon substitute materials and hydrogen applications. A few illustrative examples:

• A manufacturer that installs an innovative high-temperature heat pump instead of a gas-fired steam boiler.
• A company that builds a first commercial installation to convert residual streams into a bio-based substitute for fossil-based plastic.
• A manufacturer that produces and deploys a new type of thermal or battery storage at commercial scale for the first time.
• A manufacturing company that uses a new technology to recover and reuse waste heat from its own process.

Research activities are not eligible, the call focuses on commercial deployment.

How does it differ from the regular call?

The European Commission aims to lower the threshold for SMEs. The SME call therefore includes:

• Less paperwork: fewer documents and less information required in the application.
• Simpler climate calculation: a semi-automated tool to calculate avoided greenhouse gas emissions.
• Lighter reporting and monitoring during implementation.
• Two submission rounds per year: not ready for round 1? Then apply in round 2.
• Room for more risk: the call is open to projects with a higher risk profile than other Innovation Fund calls.

How is your application assessed?

Your project still needs to make a convincing case under the SME call. The European Commission will assess factors including:

• the degree of innovation, at European or national level;
• the potential to avoid greenhouse gas emissions;
• the technical and financial maturity of the project;
• the potential to scale up or replicate the project at other sites or in other markets;
• cost efficiency: the ratio between costs and avoided CO₂ emissions.

Support from Hezelburcht

Hezelburcht has supported organisations with their Innovation Fund applications since the programme was launched in 2020. Our specialists know what the European Commission expects, from a strong case for innovation to a robust emissions-reduction calculation and a convincing financial plan. Three projects we supported were selected in the Innovation Fund 2025 call.

We can help you at every stage:

• an initial check of whether your project fits the SME call;
• substantiating the innovation, emission reduction and project maturity;
• writing and submitting a strong application;
• grant agreement preparations and negotiations;
• project management for meeting your obligations and deadlines once the grant has been awarded.

Contact our Innovation Fund specialists

Considering an application? Start your preparations early to maximise your chances. Contact us via info@hezelburcht.com or 088 495 20 00 to schedule a meeting. Our specialists are happy to assist!