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How Space Technology Can Accelerate Net Zero Goals
Space-based technology has become one of the most powerful tools in tackling the global challenge of climate change and decarbonisation. From Earth observation satellites that monitor greenhouse gas emissions to advanced propulsion systems that reduce launch footprints, innovation in space technology is critical to achieving net-zero targets.
For SMEs and scale-ups in Europe and the UK, this sector offers a dual opportunity: driving technological breakthroughs while accessing substantial public and private funding. Yet navigating this landscape requires strategic insight. Each scheme has unique compliance demands, funding structures, and cross-border implications, and CFOs face increasing pressure to align innovation spend with decarbonisation goals while ensuring strong ROI.
This article provides a comprehensive roadmap of the funding available across Europe and the UK, from the European Space Agency (ESA) to Horizon Europe and national schemes. It also highlights the CFO pain points in financing innovation, and explains how FI Group’s “Global Reach. Local Expertise.” approach enables clients to maximise returns while reducing compliance risks.
Comparison of Major Funding Programmes
| Programme | Budget (2021–2027) | Focus Areas | Typical Funding Size | Relevance to Space Decarbonisation |
| Horizon Europe | €95.5bn | Climate, Energy, Digital, Space | €500k–€15m | Collaborative R&D, space-enabled sustainability |
| EIC Accelerator | €10bn (subset of Horizon) | Deep-tech, disruptive innovation | Up to €2.5m grant + €15m equity | Hardware/software scale-ups in climate & space |
| ESA Clean Space | €180m+ since 2010 | Green design, debris mitigation | €50k–multi-million | Clean propulsion, eco-satellites, reusability |
| LIFE Programme | €5.43bn | Environment & climate action | €1m–€10m | Climate services, space-enabled adaptation |
| UK Space Agency | £100m+ annual calls | Space science, sustainability | £50k–£15m | National missions (e.g. CO₂ monitoring) |
| Innovate UK Net Zero | £1bn+ portfolio | Clean energy, mobility, data | £50k–£2m | Satellite data for net-zero mobility, energy |
What is Space Technology for Decarbonisation?
Space technology for decarbonisation refers to the application of space-based tools and services to reduce carbon emissions, improve resource efficiency, and accelerate the transition to net-zero economies. Examples include:
- Earth Observation: Satellites providing real-time data on emissions, deforestation, and ocean health.
- Green Propulsion: Development of non-toxic, sustainable fuels for satellites and launchers.
- Energy Infrastructure: Space-based solar power and satellite-enabled grid optimisation.
- Supply Chain Monitoring: Using satellite data to verify carbon reduction claims in global trade.
- Climate Modelling: Advanced sensors that feed into predictive models for policymakers and businesses.
This convergence of space, sustainability, and digital technology creates new commercial opportunities but requires significant upfront investment, hence the growing importance of grant funding and R&D tax incentives.
Why CFOs Must Pay Attention
CFOs in innovation-driven SMEs face three recurring challenges:
- Balancing long-term innovation with short-term cash flow
Developing decarbonisation tech often requires large upfront spend on prototypes, testing, and compliance, with delayed revenue realisation. - Navigating fragmented funding ecosystems
EU, ESA, Innovate UK, and private funds all have different eligibility rules, reporting standards, and audit risks. - Avoiding opportunity costs
Missing out on grants or misaligning R&D incentives across borders can cost millions, not just in lost funding, but in lost competitive advantage.
In a climate where venture capital funding has declined year on year since 2021, grants and tax incentives are becoming the most reliable growth levers for high-tech firms.
Funding Opportunities in Europe
European Space Agency (ESA)
The ESA runs multiple programmes aligned with sustainability and space innovation:
- ESA’s ARTES (Advanced Research in Telecommunications Systems) – supports SMEs developing satellite-enabled services for climate monitoring, smart cities, and mobility.
- ESA Clean Space Initiative – focuses on eco-design, debris mitigation, and clean propulsion.
- ESA Technology Development Element (TDE) – funds feasibility studies and prototypes with applications in decarbonisation.
ESA grants often require international collaboration, making FI Group’s network across 13 countries a decisive advantage in forming and managing consortia.
Horizon Europe
With a €95.5 billion budget (2021–2027), Horizon Europe is the EU’s largest funding programme for research and innovation. For space decarbonisation, key clusters include:
- Climate, Energy & Mobility – funding projects in clean aviation, sustainable fuels, and renewable integration.
- Digital, Industry & Space – supporting satellite manufacturing, AI-driven Earth observation, and next-gen propulsion.
- Missions on Climate-Neutral Cities and Oceans – creating opportunities for space-enabled monitoring solutions.
The European Innovation Council (EIC) Accelerator within Horizon Europe also offers up to €2.5 million in grants plus blended finance, particularly relevant for scale-ups in green and space technologies.
Other EU Initiatives
- LIFE Programme (€5.43bn): Focused exclusively on environment and climate action.
- Clean Hydrogen Joint Undertaking (Clean H2 JU): €2bn for hydrogen innovation, often linked with space propulsion and storage systems.
- Digital Europe Programme (€7.59bn): Funding for AI and cybersecurity in satellite data processing.
Funding Opportunities in the UK
Innovate UK
The UK’s national innovation agency Innovate UK regularly opens competitions relevant to space and decarbonisation, such as:
- National Space Innovation Programme (NSIP) – supporting space data and climate applications.
- Net Zero Mobility and Aviation Calls – investing in clean propulsion and aircraft electrification.
- Smart Sustainable Plastic Packaging – relevant for supply chains where satellite monitoring validates sustainability claims.
UK Space Agency
Through targeted calls, the UK Space Agency co-funds ESA projects and runs initiatives on space debris mitigation and low-carbon satellite technologies.
Combined Approach: R&D Tax Relief + Grants
For UK SMEs, R&D tax relief remains a crucial complementary mechanism. Costs not covered by grants can often be claimed under the merged R&D Expenditure Credit (RDEC) scheme, offering a ~20% taxable credit on qualifying costs. CFOs must carefully structure projects to avoid “double-dipping”, where the same cost is claimed twice under different schemes, a compliance risk that FI Group’s integrated advisory model helps mitigate.
Private and Venture Funding Landscape
While venture capital remains the largest pool of growth finance, the market has cooled significantly since 2021. UK deal volumes have fallen, though average deal sizes remain larger than a decade ago, with deep-tech and life sciences attracting outsized interest.
For space decarbonisation, this means CFOs should see public funding as a hedge against VC volatility. Grants de-risk early-stage projects, making companies more attractive to private investors down the line.
Roadmap for SMEs and Scale-Ups
For SMEs considering entry into the space decarbonisation ecosystem, a structured roadmap is critical:
- Map Your Innovation Pipeline
Identify which projects align with decarbonisation priorities (e.g. propulsion, data analytics, monitoring). - Select the Right Funding Mix
Combine grants, R&D tax relief, and where possible, blended finance instruments. - Form International Consortia
Particularly for Horizon Europe and ESA projects, partnerships improve eligibility and competitiveness. - Align Reporting and Compliance
Different jurisdictions have different audit risks; early planning avoids costly delays. - Leverage Expert Support
Engage advisors who understand both the technical innovation and the financial compliance.
The FI Group Advantage
At FI Group, we turn complexity into clarity for innovation leaders. With over 1,400 experts across 20 countries, we support more than 15,000 clients annually, securing over €1.7bn in funding.
Our advisory goes beyond funding applications. We help CFOs and executives:
- Mitigate compliance risk by ensuring claims are audit-ready across jurisdictions.
- Optimise funding strategy through a single-point-of-contact model.
- Accelerate international expansion, bridging HQ strategy with local execution.
As Dr. Fawzi Abou-Chahine, Funding Director at FI Group UK, explains:
“We support clients to navigate the most competitive EU and UK schemes. Our role is not just to write applications, but to align funding with strategic goals, whether that’s scaling internationally, strengthening IP portfolios, or accelerating net-zero innovation.”
International Landscape: Global Reach, Local Expertise
Innovation does not stop at borders. Space and decarbonisation projects often require cross-continental collaboration, from launch facilities in South America to data analytics hubs in Europe and Singapore.
FI Group’s model ensures that:
- Your HQ sees the full picture, while your teams feel local support.
- Global operations don’t need global headaches.
- We deliver seamless international compliance, reducing risk in multi-country claims.
This capability is critical during M&A, supply chain shifts, and expansions where funding incentives vary widely across jurisdictions.
FAQs
What is the main funding source for space decarbonisation projects in Europe?
The European Space Agency and Horizon Europe are the leading sources, with additional opportunities under LIFE, Clean Hydrogen JU, and Digital Europe.
Can SMEs combine R&D tax relief with grant funding?
Yes, but careful structuring is needed to avoid claiming the same cost twice (“double-dipping”). FI Group helps ensure compliance with HMRC and EU rules.
How competitive are Horizon Europe calls?
Horizon Europe success rates average 10–15%, but consortium-based applications led by SMEs with strong partners see higher success.
What are CFO pain points in managing international incentives?
CFOs struggle with fragmented regulations, audit risk, and inconsistent reporting across jurisdictions. Integrated advisory support mitigates these challenges.
Why work with FI Group?
Because we combine global scale with local expertise, securing over €1.7bn in funding annually and offering tailored support for space and decarbonisation innovators.
The European Commission has published the latest edition of the 2025 European Innovation Scoreboard (EIS), confirming a positive long-term trend in the EU’s innovation capacity. Since 2018, the European Union’s innovation performance has grown by 12.6%, reflecting efforts to strengthen R&D ecosystems, promote public-private collaboration, and accelerate digitalization.
Although the most recent data show a slight slowdown (with an average decline of 0.4 points between 2024 and 2025), the overall outlook remains positive. All Member States have improved since 2018, with especially notable progress in key countries such as Spain, Belgium, Italy, Germany, and Portugal, where innovation ecosystems have continued to strengthen alongside a sustained commitment to public-private collaboration and business-driven R&D.
In Spain, several regions stand out for exceeding the European average:
Catalonia, the Basque Country, Madrid, Navarre, and the Valencian Community, consolidating themselves as competitive innovation hubs at the European level.
The 2025 Regional Innovation Scoreboard (RIS) presents a mixed but converging picture. Between 2018 and 2025, 233 out of 241 European regions improved their innovation performance, narrowing the gap between the most and least advanced areas. However, 82 regions recorded a decline between 2023 and 2025, highlighting a recent slowdown in some territories and underlining the need to reinforce policies that enhance competitiveness across all regions.
The European Innovation Scoreboard is not just a statistical report; it is a strategic reference tool for guiding public policy, planning investments, and supporting business decision-making. Its integration into the New European Innovation Agenda further strengthens its strategic role, helping to reduce disparities among countries, promote collaboration, and accelerate the adoption of cutting-edge technologies.
It also supports initiatives such as:
- The Competitiveness Compass.
- The Choose Europe campaign to attract investment and talent.
- The forthcoming EU Innovation Law, which will use these indicators to plan reforms and modernize national R&D&I systems.
In a context of growing global competition and the urgent need for sustainable transformation, companies must take advantage of the funding and innovation incentives available. The strengthening of the European innovation ecosystem creates a favourable framework for:
- Accessing national and EU R&D&I funding.
- Collaborating with research centers and startups.
- Developing innovative projects that enhance competitiveness.
At FI Group, we have teams specialized in funding programs, offering comprehensive support that covers everything from idea conceptualization, project definition, to fostering collaborations and coordinating proposals.
We accompany our clients throughout the entire project lifecycle, up to the final closure by the administration, including:
- Preparation of funding proposals.
- Interaction with institutions.
- Dossier management.
- Project justification.
- Audit support.
We turn opportunities into tangible results. With a strong presence across Europe and deep expertise in EU funding programmes, we support businesses in identifying and securing resources for innovation-driven projects.
If your organisation is looking to enhance its competitiveness through strategic innovation, explore how we can assist you via the EU Grants.
Talk to our experts and turn your ideas into real impact: Request a Free Audit
The Technology Readiness Level (TRL) scale is used to assess the technological maturity of an innovation or technology before its operational implementation. This tool is commonly used in the field of research and development (R&D) to provide a common understanding of a technology’s degree of readiness.
TRL is a concept created by NASA
NASA (National Aeronautics and Space Administration) developed the TRL scale in the 1970s. Originally, this tool had 7 levels of maturity and was used to manage the technological risks of NASA programmes. It was not until 1995, however, that a final, global version of the scale was published, comprising 9 different maturity levels altogether.
Technology Maturity levels
The TRL scale is made up of nine levels, numbered from 1 to 9, representing different stages of technological development. Each TRL is associated with specific criteria that describe the characteristics and performance of the technology at that stage of development.
What is the meaning of TRL?
Evaluating a technology’s TRL enables us to understand where it is in its development cycle and to identify the remaining stages required to reach maturity and commercialization.
The scale is used by researchers, engineers, companies and organizations to assess the TRL.
The 9 levels of TRL
Stage: Idea
- TRL 1 – Fundamental research
This is the initial stage of research, where scientific principles are explored and understood. - TRL 2 – Applied research
Scientific principles are applied to develop technological concepts and prototypes. - TRL 3 – Experimental proof of concept
Experiments are carried out to demonstrate the feasibility of the technology and validate the basic principles.
Stage: Prototype
- TRL 4 – Laboratory validation
The technology is tested in the laboratory to assess its performance and functionality. - TRL 5 – Simulated environment validation
The technology is tested in simulated conditions approximating the actual environment it is to be used in.
Stage: Validation
- TRL 6 – Validation in an operational environment
The technology is tested in an operational environment to assess its performance in real-life conditions. This crucial stage calls for the demonstration of an actual system’s prototype. - TRL 7 – Initial operational deployment
The technology is put to limited operational use and evaluated (at prototype scale) under real-life conditions.
Stage: Production
- TRL 8 – Operational use
The technology in its final form is operationalized on a large scale, demonstrating its reliability and effectiveness. - TRL 9 – Market-ready technology
The technology in its final form is fully developed, validated and ready to be marketed and deployed on a large scale.
The TRL scale and public funding
Horizon Europe
In 2014, the TRL scale was incorporated in projects funded by the European Union (EU) as part of the Horizon 2020 framework programme.
The Horizon Europe programme then adopted the TRL scale as an indicator to improve the positioning of projects applied for in the programme. This unified scale enables applicants and evaluators to meet the expectations of the European Commission (EC).
This makes the TRL scale a key tool in the Horizon Europe 2021-2027 framework conditions for participation. To be eligible for funding, projects need to meet the following requirements:
| Activity | Funding rate | TRL |
| RIA Research & Innovation Actions | 100 % + 25 % | 4 – 6 |
| IA Innovation Actions | 70 % + 25 % | 6 – 8 |
| CSA Coordination & Support Actions | 100 % + 25 |
A higher TRL in a call text thus clearly indicates that the EC is looking for a more applicative solution within the project, while a lower TRL indicates that a more fundamental research project is expected.
The TRL is also used to indicate the ‘entry point‘, i.e. the maturity level of a given technology, product or process at the start of the project. In this case, the respective TRL serves as the ‘lower limit’.
TRL in innovation grants and subsidies
In the application procedure for subsidies and innovation, funding agencies use the TRL scale to assess the eligibility of different innovative projects.
TRL in Funding of innovation projects
TRL in Funding of investment projects
TRL Scale in Tax Credits Projects
The TRL scale is also used to assess the eligibility of projects for tax credits, such as the Research Tax Credit (CIR) and Innovation Tax Credit (CII).
Projects in the early stages of development are eligible for CIR, while projects further up the TRL scale are eligible for CII.
FI R&D Tax Calculator
Does your company develop technological projects? Do you want to know how much R&D expenditure you could claim? Discover the new FI R&D Tax Calculator and gain a clear understanding of your possibilities. Make the most of your R&D activities and claim the corresponding tax deductions!
Research and development plays a fundamental role in the advancement of science, technology and innovation. Organisation for Economic Cooperation and Development (OECD) countries recognize the importance of encouraging investment in R&D to boost economic growth and improve competitiveness.
In this sense, many countries have implemented a series of tax incentives to promote investment in R&D. These incentives seek to reduce the costs (and cover the risk) associated with research and development, encourage collaboration between companies and research centers, and stimulate the creation of highly qualified jobs in the private sector.
Tax incentives for R&D
One of the most common incentives is the tax deduction for R&D activities. This scheme allows companies to deduct a percentage of R&D expenses from their tax base, which reduces the tax burden and increases the resources available for investment in research and development. Some countries offer additional deductions for the hiring of qualified personnel or for the acquisition of technological equipment.
Another incentive used in many OECD countries is the R&D tax credit. This mechanism allows companies to obtain a tax credit equivalent to a percentage of R&D expenses. Tax credit is a direct benefit that individuals can use to reduce the tax payable or even obtain a cash refund if the credit exceeds the tax owed, unlike tax deduction.
In addition to direct tax incentives, some OECD countries have implemented special regimes for research and development, which offer additional benefits, such as exemption from taxes on income derived from the exploitation of patents or reduction of taxes on profits from patents. capital obtained from the sale of assets related to R&D.
In many cases, R&D tax incentives are designed to encourage collaboration between companies and research centers. For example, some countries allow the transfer of R&D tax credits between companies, facilitating collaboration on joint research projects. Other incentives include the possibility of deducting R&D expenses carried out by third parties, such as universities or research centers, as long as effective collaboration is established.
R&D Tax Incentives Intensity Map
It is important to highlight that tax incentives for R&D vary significantly between different countries. Each country has its own regulatory framework and establishes its own conditions and requirements to access tax benefits. Some countries offer more generous incentives, while others have stricter requirements. Therefore, it is essential that companies interested in taking advantage of these incentives consult the current legislation in each country and obtain appropriate advice.
For this map to be representative of the different nature of R&D tax incentives (volume- based and incremental tax credits, super deduction), we took the scenario of a large company with R&D expenses during the last 10 years. Every year the amount of eligible R&D expenses is growing, as such, the claimant can apply for incremental R&D tax credits and deductions. The effective return on the R&D expenses is shown in the legend as a percentage of posttax reduction.
How can FI Group help you?
At FI Group we have extensive knowledge and experience in obtaining these tax incentives on different continents, with a global and coordinated strategy that is also complemented by the management and obtaining of public aid and subsidies for different types of investments. The combination of both incentives, from a strategic point of view and from a financial point of view, can mean for the company an important differentiation and competitive advantage within its scope of action.
FI Group has over 20 years of experience. Our specialized experts are at your disposal to analyze the fit of your project and advise you on obtaining tax incentives. Contact us.
Innovation and technological development lie at the core of FI Group’s DNA, filtering down through every member of the group. These elements are deemed indispensable for fostering growth and bolstering the competitiveness of any country.
This stemmed from the aftermath of the Covid-19 pandemic. Where both national and international policies strategically pivoted towards promoting investment in R&D&I and energy efficiency to reignite various sector’s work after the pandemic.
Regional, national, and European grants emerged as the primary public tools to drive economic revitalisation and foster growth across continents. Adequate public funding plays a pivotal role in facilitating the execution of large-scale R&D projects, which are critical for addressing the challenges posed by the prevailing political and economic landscape. These grants not only present opportunities for entities to confront these challenges but also serve as catalysts, inspiring innovation, differentiation, and investment to ensure development.
Currently, the continent boasts over 100,000 funding opportunities, encompassing regional, national, and European grants. Recognising the significance of these public funding opportunities, we have assembled a panel of experts from different countries to engage in a comprehensive discussion on the subject.
Among those attending this round table were:
1. First question: How many calls are there in each of your countries?
«Just imagine, according to the Spanish national database, in 2022 there were 62,817 calls for proposals,» –AV.
«At the regional level alone in this 2023, 459 calls have already been opened» –NZ.
«And we are only in May, we still have more than half the year ahead of us»- FAC to which Roberta explains that in Italy right now there are more than 650 published and waiting for the publication of another 97.
2. What do the calls for proposals mean for the different companies?
«I think we all agree that these calls for proposals, at all levels and for all types of companies, mean the possibility of making an investment or starting a project that would otherwise be difficult to carry out,» –VO.
«I totally agree. In addition to the fact that it makes it possible to grow the business and expand into new markets, and even to become known as a key player in the different sectors, especially in R&D calls,» –RD
«We cannot forget that it has an incentive effect, and that it also makes it possible to achieve results in a shorter period of time than would be possible without these calls». – AV
3. What role does FI Group play in the achievement of these objectives? How can we accompany the different companies in these processes of application to the different calls?
«At the level of the processes of fitting into the calls, application, monitoring and justification; for a company it is a tremendously bureaucratic and complex process. Being able to count on a trusted partner with years of experience is essential,» –AV *while her colleagues nod in agreement.
«With the support of a specialised agent or one that is close to the convening agency is a «privilege» that few actors have in this ecosystem. FI Group has a long experience and great success in all the stages that my colleague explained earlier,» -FAC
«We have teams of experts in both technical and financial areas, without forgetting that we are part of the ecosystem and know all the parties involved, being active and proactive in creating value propositions to improve the systems and funds so that they are more attractive and competitive,» –MO
«We also help to involve one or more stakeholders in relation to the sector or area, and we help and accompany them to improve collaboration. This is precisely due to a large global database of contacts that we have been working on during the 20 years of FI Group’s existence, which allows us to support our clients in an aggregated way, both at multi-country, multi-sector and multi-service levels».-RD
«Absolutely. To a great extent to the experience acquired, the knowledge, the connection networks, we have the capacity to offer this multi-country, multi-sector and multi-service service, but we also continue to do it as the first day, with an individual team per client, with an exclusive and close accompaniment, always making their project ours» –NZ
4. What are the most strategic sectors right now?
«I think we all agree that currently the most strategic sectors, not only for FI Group but for the whole of Europe and therefore for our clients, are industry in general and specifically all the electro-intensive ones, as well as everything related to energy, decarbonisation and hydrogen,» –NZ
«Automotive, ICT, Tourism, biotechnology, textile, chemical…». – MO
«From FI Group we continue and will continue to accompany all companies in achieving their objectives and their R&D&i projects, solving their doubts, finding the best fit in consortia or accompanying them in the justifications of the calls they have already achieved. This is and will be the driving force of all the colleagues who are part of this company». –VO
Hit the links below to access their LinkedIn profiles:
The pandemic has led to a global economic and social crisis, and the European Union and Member States have had to adopt emergency measures. Among these, the creation of an exceptional temporary recovery instrument, the NextGenerationEU, has been agreed.
FI Group is an active player in multiple European countries that will benefits from NextGenerationEU. These countries include:
- Belgium
- France
- Germany
- Italy
- Portugal
- Spain
FI Group has already developed a dedicated up and running Next Generation team in each of the countries listed. These teams are qualified to handle any questions or requirements your company might have regarding NextGenerationEU.
This recovery instrument is supported by 750 billion euros, part of which will be provided in the form of repayable loans (360 billion euros) and part of which will be provided in the form of non-repayable transfers (390 billion euros).
The EUR 750 billion will be distributed through different tools:
- EUR 672.5 billion through the Resilience and Recovery Mechanism
- EUR 47.5 billion distributed through ReactEU
- A further EUR 10 billion for the Just Transition Fund
- 7.5 billion which is earmarked for Rural Development
- 5 billion to be distributed through Horizon Europe and another 5.6 billion through InvestEU.
- RescEU will have a package of €1.9 billion
At FI Group we are supporting the entire value chain (startups, SMEs, large companies, knowledge centres, etc.) in areas such as:
- Agri-food
- Automotive
- Biopharma
- Digital Transformation
- Energy
- Industry
- Public Administrations
- Tourism
If you want to find out more about how your company could benefit, get in contact with our team today!
