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Space-Based Tech for Decarbonisation: Funding Roadmap for EU and UK SMEs
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.
Europe Advances in Innovation: Analysis of the 2025 European Innovation Scoreboard
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
AI-Driven Innovation: How Artificial Intelligence Helps Us Maximize Efficiency
Did you know that over 70% of companies worldwide are already using some form of artificial intelligence in their processes? Currently, AI is not only transforming industries but also changing the way teams work and add value.
At FI Group, we have made artificial intelligence an ally to enhance our internal capabilities, improve our efficiency, and deliver better results for our clients.
The integration of AI into our daily work allows us to:
- Automate routine tasks: Automation through AI can save up to 30% of time on administrative and management activities
- Prioritize what really matters: By letting AI handle low-value tasks, our team can focus on strategic and creative projects that generate real impact for our clients.
- Quickly access and process key information: With the help of MarIA, our integrated artificial intelligence tool, we can analyze large volumes of documents and access cross-sectional information about our clients and the company to process and obtain relevant information in minutes.
- Improve decision-making: A recent IBM study reveals that 42% of consulting firms already use AI to support decision-making and real-time data analysis
How We Use AI at FI Group
The implementation of AI at FI Group spans several key areas that have transformed our daily operations:
- Support for teams: Tools like MarIA, SmartRead, and Copilot interact with each employee, assisting in document management and answering operational questions. This facilitates a review of the state of the art with an academic database, allowing human talent to focus on developing high-value information for the process.
- Process automation: The digitization of tax documentation has become a quick and efficient task thanks to tools like the invoice scanner, which uses locally trained AI. This not only speeds up document analysis but also improves efficiency in responding to our clients.
- Continuous learning: AI is not static; it learns from our processes and provides teams with personalized suggestions, helping to improve every day. This cycle of continuous learning is essential for adapting to the changing needs of the market and our clients.
For the successful integration of AI, it is essential to consider several aspects:
- Organizational culture: We are committed to the ongoing training and updating of our team. Training focuses not only on the use of tools but also on understanding how AI can enhance our capabilities.
- Ethics and responsibility: At FI Group, we ensure the safe and ethical use of data, protecting the confidentiality of our clients’ information. Trust is a fundamental pillar in our relationship with them.
- Long-term vision: We see AI as a tool to enhance human value, not to replace it. Our focus is on how artificial intelligence can complement and improve human work, creating synergies that benefit both our employees and our clients.
Artificial intelligence is a fundamental part of our operational strategy. It allows us to be more agile, respond better to our clients’ needs, and find new ways to deliver real value in a competitive environment. Our experience shows that when AI is integrated with a human and orderly vision, the results multiply.
In a world where innovation is the key to surviving and thriving, artificial intelligence is not just a tool but a strategic partner. By adopting AI responsibly and ethically, we not only optimize our processes but also open the doors to a future full of possibilities. Companies that dare to integrate AI into their DNA not only stay at the forefront of innovation but also become leaders in their respective sectors, creating a lasting impact on society and the economy.
The AI-driven transformation is a continuous journey. At FI Group, we are committed to continuing to explore new applications and improvements in our artificial intelligence tools, ensuring that every day we can provide an even more efficient and valuable service to our clients. Artificial intelligence is the path to a brighter and more productive future, and we are excited to be part of this revolution.
Food Revolution: Strategies for a Sustainable Future
The global food system is undergoing a profound transformation. As urbanisation and industrialisation have distanced populations from food production, the environmental and social consequences have become increasingly evident.
Today, the agri-food sector is responsible for a significant share of greenhouse gas emissions, water consumption, and deforestation. In response, governments, businesses, and consumers are embracing sustainable practices and technologies to reshape the future of food.
The Environmental and Social Impact of Food Production
Modern food systems contribute to:
- 33% of global greenhouse gas emissions
- 70% of freshwater usage
- 80% of global deforestation
Additionally, over 735 million people face food insecurity, a number exacerbated by recent global crises such as the COVID-19 pandemic and geopolitical conflicts. These figures highlight the urgent need for a more resilient and sustainable food model.
To address these challenges, a range of sustainable practices is being adopted:
- Regenerative agriculture: enhances soil health through crop rotation, composting, and livestock integration.
- Urban farming: reduces food miles and promotes local food systems.
- Biodegradable packaging: minimizes plastic waste and environmental pollution.
- Extensive livestock systems: promote animal welfare and reduce environmental degradation.
According to the FAO, food production must increase by over 50% by 2050. Achieving this requires producing more with fewer resources, reducing waste, and promoting healthier, plant-forward diets.
Evolving Consumer Behaviour and Dietary Trends
Consumer awareness is shifting towards more responsible consumption. Key trends include:
- Preference for organic and locally sourced products
- Reduction in meat consumption
- Adoption of vegetarian and plant-based diets
- Efforts to reduce food waste through bulk purchasing and meal planning
These behavioural changes are essential to supporting a sustainable food transition.
The Rise of Foodtech: Innovation Driving Sustainability
Foodtech, the intersection of food and technology is revolutionising the agri-food sector. Start-ups and established companies are leveraging:
- Artificial Intelligence (AI)
- Big Data
- Internet of Things (IoT)
These technologies are being used to optimise food production, reduce waste, and develop alternative proteins such as lab-grown meat. Companies like Beyond Meat, backed by investors such as Bill Gates and Leonardo DiCaprio, exemplify the potential of food-tech to scale sustainable solutions.
Future Foods: A Sustainable and Nutritious Alternative
The WWF and Knorr have identified 50 “future foods” that are nutritious, climate-resilient, and resource-efficient. These include:
- Seaweeds (e.g., wakame, laver)
- Legumes (e.g., lentils, fava beans)
- Grains (e.g., quinoa, brown rice)
- Tubers (e.g., sweet potato, lotus root)
- Insects, promoted by the FAO, offer high nutritional value and require minimal resources to produce.
ncorporating these foods into mainstream diets can significantly reduce environmental impact while improving global nutrition.
A Call for Collective Action
Transitioning to a sustainable food system is not only an environmental imperative but also a social and economic opportunity. By embracing innovation, supporting responsible consumption, and promoting future foods, we can build a more equitable and resilient global food system.
Change begins with small actions and conscientious choices that, collectively, can transform the world.
Is your company truly embracing diversity and inclusion?
Embracing diversity is not only a moral imperative, it is a powerful driver of growth, innovation, and resilience. Diversity should never be treated as a checklist; it is a mindset that must be deeply embedded into the corporate culture.
A genuinely inclusive organisation is one that evolves continuously, listens with intent, and understands diversity not as a challenge, but as a competitive advantage.
Just imagine: we operate in 13 countries, serve thousands of clients across the globe, and see first-hand how diversity transforms teams and ideas. However diversity alone is not enough. It is the combination of diversity and inclusion that unlocks an organisation’s full potential.
Why does diversity matter? And why might inclusion matter even more?
These efforts aren’t just nice to have, they’re essential for attracting the top talent and creating a workplace where everyone feels valued. Recent research states that 88% of employers consider D&I initiatives essential to their success, with 80% having a positive view of their impact.
But here’s the catch: diversity without inclusion is just optics.
True inclusion means:
- Listening to all voices, not merely inviting them to the table.
- Creating space for different communication styles, languages, and perspectives.
- Reshaping structures and habits to enable everyone to thrive, not just to “fit in”.
Understanding Diversity as a driver of innovation
Innovation develops when ideas grow constructively, when new perspectives gain space and when people are curious to understand the world through someone else’s experiences and opinions.
With offices across Europe, the Americas, and Asia, we are committed to building a workplace where individuals from varied backgrounds, cultures, and experiences feel valued and empowered.
We know that innovation, the heart of our business, depends on it.
Let’s get practical: How do we build a diverse and inclusive culture?
- Redefine leadership: Diversity sets the tone for the entire organisation.
- Make inclusion measurable: Track team dynamics, promotion pathways, and feedback loops. Be transparent about areas needing improvement.
- Create safe spaces for all voices: Foster a culture where individuals feel confident to challenge ideas, share their experiences, and bring their authentic selves to work.
From this perspective, one conclusion becomes clear:
Teams + Diversity + Inclusion = Better decisions
Diverse teams bring more perspectives, richer experiences, and broader information, helping reduce cognitive bias and improve accountability. It’s no longer a question of whether diversity and inclusion matter, they are now strategic imperatives.
Organisations that nurture inclusive cultures benefit from:
- Faster, more effective problem-solving
- A deeper understanding of evolving markets
- Enhanced adaptability in a dynamic business environment
At FI Group, we believe that building diverse and inclusive teams is not only the right thing to do, it is essential for staying competitive and relevant in today’s world.
In an era where differentiation is critical, inclusion becomes a powerful engine of resilience, agility, and long-term growth.
Companies that embrace this mindset don’t just respond to change, they shape it.
