Impact Economy Governance

Launched by the European Commission in 2019, the Green Deal is more than just a policy – it is a comprehensive vision for transforming the EU into a modern, resource-efficient, and competitive economy. Imagine it as a roadmap, guiding Europe toward a future where economic growth is decoupled from resource use and where no one is left behind in the process.

The overarching goal of the Green Deal is to make Europe the first climate-neutral continent by 2050. But what does that really mean in practice? Here are the main targets that bring this vision to life:

Reduce greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. This is not just a general ambition but a binding commitment under the European Climate Law, which entered into force in 2021.

Achieve net-zero emissions by 2050, meaning that the difference between greenhouse gas emissions released into the atmosphere and those removed from the atmosphere is zero.

Adapt society to the unavoidable impacts of climate change. Think of rising sea levels, heatwaves, or extreme weather event - these are already happening, and the EU wants to ensure communities are resilient enough to face them.

Protect and enhance Europe’s natural capital, including forests, soil, water, and biodiversity. These are not just “nice to have” environmental features - they are essential to our survival and economic prosperity.

Safeguard citizens’ health and wellbeing from pollution and environmental degradation.

And importantly: ensure fairness and inclusion - that no region or social group is left behind during the green transition.

Now that we understand where the EU wants to go, the next question is: how do we get there?

To reach the Green Deal’s ambitious goals, the EU has rolled out several targeted strategies. The strategies and action plans developed by the European Commission play a crucial role in shaping policy both within the EU and beyond. They provide a structured basis for legislation, funding programmes, and cross-sector collaboration. Through the following strategies, the European Commission established the EU as a global standard-setter in areas such as climate policy, sustainable development, and the circular economy.

Imagine a world where products are designed not to be thrown away, but to be repaired, reused, and recycled; where waste becomes a valuable resource instead of an environmental burden. This is the vision of the Circular Economy, and the Circular Economy Action Plan (CEAP), launched by the European Commission in March 2020, is the EU’s roadmap to make that vision a reality.

Unlike the traditional linear economic model, where resources are extracted, used, and then discarded, the circular economy is based on keeping materials in use for as long as possible. It is about designing products that last, creating systems that minimise waste, and encouraging choices that reduce environmental impact across the entire product lifecycle.

The CEAP outlines 35 concrete actions that touch on every stage of this cycle, from production and consumption to waste management and recycling. Importantly, these actions are not just proposals. The European Commission has formally committed to implementing them, meaning each action is followed by clear steps, timelines, and accountability mechanisms.

To help citizens, businesses, and policymakers track the implementation of these measures, the Commission has established the CEAP Monitoring Framework. This tool offers transparent updates on how each action is progressing, allowing the public to follow the EU’s transition toward a circular economy in real time.

For example, one of the key actions involves the definition of eco-design rules that set sustainability requirements for specific product categories, such as electronics and textiles, to reduce their environmental footprint from the design phase onward.

If you who want to explore this topic in greater depth, the Circular Economy Module provides a structured overview of the principles, policies, and real-world examples behind this transformative model.

Unlike the traditional “take-make-dispose” model, the circular economy keeps materials in use for as long as possible. The CEAP introduces initiatives that touch every part of a product’s life cycle, from design and production to consumption and recycling.

Whether you are an entrepreneur, a manager, or someone preparing to work in a business environment, it is essential to understand which and how legal tools shape business practices, especially in areas like sustainability and reporting. We will start by clarifying two key types of EU legislative acts that you will come across: Regulations and Directives.

A Regulation is a binding legal act that applies directly and uniformly in all EU member states. This means that once it is passed at the EU level, it automatically becomes law in every country, with no need for national governments to take further action to implement it.

Example: the EU Taxonomy Regulation (2020/852) provides a common classification system to define which economic activities can be considered environmentally sustainable. This regulation helps investors, companies, and policymakers align their financial and strategic decisions with the EU’s green objectives. You can explore more about this in Section 2 of this Unit.

A Directive sets out a goal that all EU countries must achieve, but leaves it up to each country to decide how to do so through its own national laws. This allows for flexibility in implementation while still working toward shared objectives.

Example: Corporate Sustainability Reporting Directive (CSRD – 2022/2464), which requires companies to disclose key information on how they manage environmental, social, and governance (ESG) issues. This directive is reshaping corporate transparency across Europe, but gives each country the freedom to choose how to reach it. For instance, Germany, known for its strong industrial base, has approached the CSRD by expanding the existing German Commercial Code to include more detailed sustainability reporting requirements. On the other side, Italy transposed the Directive into national law through a Legislative Decree, updating the existing “non-financial reporting” obligations for companies. More details on the CSRD are provided in Section 3.

Understanding these legal instruments is more than just a technical requirement - it empowers businesses to anticipate change, plan strategically, and contribute actively to the EU’s transition toward a more sustainable and fair economy.

The EU Taxonomy Regulation (2020) is a cornerstone of the European Union’s sustainable finance strategy. Its main goal is to create a common language for identifying which economic activities can be considered environmentally sustainable - helping investors, companies, and policymakers steer financial flows toward greener practices.

To make the regulation more accessible, the European Commission has created the EU Taxonomy Navigator—an online portal that offers:

> A step-by-step guide to applying the taxonomy

> A User Guide for beginners and non-specialists

> Access to criteria search tools, lists of eligible activities, and helpful FAQs

This tool is especially useful for SMEs, students, and sustainability professionals who want to understand how the taxonomy works in practice, without needing legal or technical expertise.

This regulation matters because it sets clear criteria that define what “sustainable” really means in practice. It supports the European Green Deal by making sure that investments labelled as “green” are aligned with real environmental benefits, not just marketing claims.

For an activity to be considered environmentally sustainable under the EU Taxonomy, it must meet four key conditions:

1. Substantial contribution to at least one environmental objective

There are six objectives defined in the regulation:

1. Climate change mitigation
2. Climate change adaptation
3. Sustainable use and protection of water and marine resources
4. Transition to a circular economy
5. Pollution prevention and control
6. Protection and restoration of biodiversity and ecosystems

2. Do No Significant Harm (DNSH)

The activity must not harm any of the other environmental objectives. For example, a project that helps reduce emissions must not simultaneously damage biodiversity or pollute water sources.

3. Respect for Minimum Social Safeguards

These refer to international human rights and labour standards (e.g., OECD Guidelines, UN Guiding Principles on Business and Human Rights) that companies must follow to qualify.

4. Compliance with Technical Screening Criteria

These are detailed environmental performance benchmarks defined in delegated acts (explained below), which vary depending on the sector and activity.

Delegated acts are legal instruments used by the European Commission to add technical details to the main regulation, without needing to rewrite the entire law. In the case of the Taxonomy Regulation, they define exactly how an economic activity must perform to meet sustainability standards.

There are three main types relevant to the taxonomy:

• Climate Delegated Act: Specifies criteria for activities that contribute to climate change mitigation and adaptation (e.g., renewable energy, building renovation).
• Environmental Delegated Act: Expands criteria to cover other environmental goals, such as water protection or circular economy.
• Disclosures Delegated Act: Guides how companies - especially those under the Corporate Sustainability Reporting Directive (see next Section) - must report which part of their business aligns with the taxonomy.

The Corporate Sustainability Reporting Directive (CSRD), which came into force in January 2023, marks a major step forward in how companies across Europe report on their social and environmental impact. The aim is to improve transparency and help investors, consumers, and stakeholders make informed decisions based on a company’s sustainability performance.

The directive applies to large firms and some listed SMEs, but even if a business is not directly subject to the CSRD, it can still be affected. Many smaller companies are part of larger supply chains. If a large company must report on the environmental and social practices of its suppliers, it will likely request sustainability-related information from the SMEs it works with. This indirect impact is known as the "trickle-down effect", and it means that even non-listed SMEs may soon need to start tracking and sharing data on their sustainability efforts.

Understanding the CSRD is therefore important not only for compliance but also for remaining competitive and visible to customers, partners, and investors who are under growing pressure to prove their sustainability credentials.

To know more about the CSRD, consult the resource developed by the IMPACT ACADEMY project available at this link. The document will guide you through:

• Companies covered by the directive
• Timeline for implementation
• European Sustainability Reporting Standards
• Tools to help companies begin preparing

The Eco-design for Sustainable Products Regulation (ESPR), which entered into force on 18 July 2024, represents a cornerstone of the EU’s strategy to make sustainable products the norm across the single market. This proposed regulation extends the principles of eco-design—originally developed for energy-related products—to virtually all physical goods sold in the EU, including imported products. Its overarching goal is to reduce the environmental footprint of products throughout their entire life cycle: from design and manufacturing to use, repair, and end-of-life management.

Manufacturers will be required to:

• Design products in line with new eco-design performance requirements - this means increasing durability, reparability, reusability, recyclability, and overall energy and resource efficiency.
• Introduce a Digital Product Passport (DPP) for each product, which will store and share information such as materials used, repair options, and environmental impact. The DPP will make sustainability data more transparent across the value chain.
• Perform internal conformity assessments to verify that their products meet ESPR requirements.
• Ensure traceability and accountability by displaying contact information on products, packaging, or accompanying documentation.
• Provide clear user instructions, including guidance on usage, maintenance, and end-of-life disposal—available in an accessible format and language for consumers across Member States.

To ease the transition for small and medium-sized enterprises (SMEs), the Commission proposes specific support tools, such as:

• Simplified reporting obligations tailored to SME capacities.
• Guidance and assistance for conducting environmental impact assessments, helping businesses evaluate their products without excessive technical burdens.

These support structures are designed to prevent smaller businesses from being left behind and to encourage their participation in the green transition. However, there are both benefits and challenges associated with these new obligations:

Packaging might seem like a simple detail in the life cycle of a product, but it plays a critical role in the EU’s efforts to reduce waste, protect the environment, and move toward a circular economy. This is why the Directive 94/62/EC, most recently amended by Directive (EU) 2018/852, sets specific rules for all packaging placed on the EU market. The aim is not only to reduce the amount of waste generated but also to ensure that packaging materials are reused, recycled, or recovered in the most efficient and sustainable way possible.

To comply with the directive, packaging must meet several important criteria:

• Limit packaging weight and volume while ensuring safety, hygiene, and acceptability
• Minimise hazardous substances in packaging material
• Design packaging for reuse, recycling, or energy recovery

Recognising that more ambitious action is needed, especially in light of the European Green Deal, the European Commission proposed in 2022 a new Regulation on packaging and packaging waste. Unlike a Directive, which allows Member States some flexibility in how they implement the rules, a Regulation will be directly binding in all countries. This shift is intended to harmonise practices across the EU and push the packaging sector more decisively toward sustainability goals.

IMPACT ON SMES

This new legal framework brings significant changes, especially for small and medium-sized enterprises (SMEs). These businesses often have limited resources to quickly adapt to new compliance standards. The new rules tackles:

It is important to understand how such legislation affects not just environmental outcomes, but the way business’ function day to day. These kinds of changes also open opportunities for innovation, eco-design, and competitive differentiation, particularly for companies that can adapt quickly and creatively.

In a product’s life cycle, the post-sale phase—what happens after a product is purchased—is increasingly seen as a strategic opportunity to reduce waste and extend product use. The Directive on Repair of Goods, which entered into force on 30 July 2024, is part of the broader Right to Repair initiative and reflects the European Commission’s commitment to promoting a more circular economy where repair becomes the first and easiest option.

Manufacturers, particularly of products such as household appliances, electronics, and ICT devices (which are often repairable), are now subject to new duties:

• They must provide a European Repair Information Form, offering clear details about conditions, costs, timelines, and available services, so consumers can compare offers easily and avoid surprises.
• They are required to offer mandatory repair services for specific products even after the legal guarantee has expired, provided the repair remains technically feasible.
• They must inform consumers about repair options and obligations, including where and how to access certified repair services.

Unlike other EU regulations that offer targeted support for SMEs, the Directive on Repair of Goods currently does not include specific mitigation measures for smaller businesses. As a directive, sets out objectives but leaves flexibility to Member States in how they implement support measures.

The Sustainable Europe Investment Plan, or SEIP, is the financial backbone of the European Green Deal. Its purpose is to channel at least €1 trillion into sustainable investments over a decade. This significant financial commitment supports the European Union’s overarching goal: achieving climate neutrality by 2050.

To understand how this investment is structured, imagine the SEIP as a house built on several financial foundations, each contributing a different kind of support.

EU BUDGET (2021-2027)

This is the core financial tool of the Union. Twenty-five percent of the EU budget is now dedicated to climate and environmental actions. This funding is distributed across a range of programmes, each targeting specific sectors. Some examples include:

• The European Agricultural Fund for Rural Development, which supports sustainable farming.
• Horizon Europe, which funds research into green technologies.
• The LIFE Programme, which focuses on environmental and climate action.
• Cohesion Funds and Regional Development Funds, aimed at reducing regional disparities and promoting eco-friendly infrastructure.

In total, this part of the budget mobilises €503 billion from EU funds, with an additional €114 billion from national co-financing by Member States.

INNOVATION & MODERNISATION FUNDS

These particular funds do not come directly from the traditional EU Budget. Instead, they are financed through an important environmental policy tool: the EU Emissions Trading System (ETS). The ETS operates by putting a price on carbon emissions, and the revenues generated from the sale of carbon allowances are then reinvested to support the EU’s green ambitions. Specifically, around €25 billion is earmarked to help modernise energy systems and to develop innovative low-carbon technologies across the Union. Go to Section 3 to know more in detail the functioning of the ETS.

INVESTEU (2021-2030)

It provides €279 billion in guarantees to support higher-risk projects that might otherwise struggle to find financing - projects such as innovative clean energy start-ups or large-scale building renovations. To understand better its functioning, think of InvestEU as the EU’s risk-taker, as a financial engine that brings together public and private money to support green and sustainable projects. Rather than funding everything directly with EU money, the EU uses a smart approach: it provides a guarantee from the EU budget. This guarantee gives confidence to major financial institutions -like the European Investment Bank (EIB) Group, National Promotional Banks and International Financial Institutions - to invest in projects that might normally be considered too risky.

Because of this guarantee mechanism, these institutions are more willing to support innovative or large-scale projects, such as renewable energy infrastructure, green transport, or low-carbon technologies. This approach also helps to “crowd in” private investors, meaning that businesses, banks, and other private actors are more likely to join in, knowing the EU is backing the effort.

JUST TRANSITION MECHANISM (2021-2027)

This mechanism does not include a single pot of money. Instead, funding comes from several sources:

• The EU budget, which provides direct support;
• Co-financing by Member States, meaning national governments add their own contributions;
• Additional input from InvestEU and the European Investment Bank (EIB), which help expand the financial reach of the mechanism.

When we look at the full picture over a 10-year period, the total amount of investments mobilised by the JTM is expected to reach around €143 billion.

This is a significant financial effort focused on helping regions:

We will examine this more closely in the next section (go to Section 2)

Transitions are rarely smooth, and the EU recognises that some regions and communities will be more affected than others. The Just Transition Mechanism is designed to ensure that no one is left behind.

Imagine a coal mining region, where thousands depend on fossil fuel-based jobs. As the EU shifts away from carbon-heavy industries, such communities face job losses and economic instability. The JTM intervenes to provide both financial and technical support, ensuring a fair and inclusive path to sustainability.

KEY FEATURES:

• It helps workers gain new skills, supports job placement programmes, and stimulates economic renewal in struggling areas.
• Importantly, it does not fund any projects involving fossil fuels. This ensures alignment with climate neutrality goals.
• Member States must develop and submit Territorial Just Transition Plans (TJTPs). These plans outline the specific needs and transition strategies for eligible regions.

FUNDING STRUCTURE

JUST TRANSITION FUND (JTF)

Provides €19.7 billion in grants for diversifying local economies, supporting small businesses, and upskilling the workforce in carbon-intensive regions.

INVESTEU JUST TRANSITION SCHEME

Encourages investments in sustainable infrastructure projects by de-risking private and public investment.

PUBLIC SECTOR LOAN FACILITY (PSLF)

Offers €1.3 billion in EU grants paired with loans from the European Investment Bank. This is aimed at financing public infrastructure, such as green public transport or energy-efficient public buildings.

As mentioned in Section 1, the ETS is the EU’s primary policy tool for reducing greenhouse gas emissions. It operates on a cap-and-trade system. But what does that mean?

Think of it like this: the EU sets a cap, or limit, on the total amount of greenhouse gases that industries can emit. Within this cap, companies receive or buy emission allowances. Each allowance gives them the right to emit one ton of CO₂.

SECTORS COVERED:

• Power generation
• Heavy industry sectors like steel, cement, and chemicals
• Aviation within Europe

By 2027, a second trading system—ETS2—will extend coverage to emissions from buildings, road transport, and additional sectors, addressing areas where emissions have been harder to curb.

KEY FEATURES:

Cap on Emissions

The total number of allowances available is limited and decreases over time, tightening the cap.

Tradeable Allowances

If a company emits less CO₂ than its allowances permit, it can sell the surplus. Conversely, if it emits more, it must buy extra allowances.

Progressive Reduction

As the cap lowers, the cost of allowances increases. This creates a financial incentive for companies to innovate and reduce their emissions. Firms that exceed their allowances without purchasing more face substantial fines.

In response to the economic shock caused by the COVID-19 pandemic, the EU created NextGenerationEU, a temporary recovery instrument. Its core component is the Recovery and Resilience Facility (RRF).

The RRF supports reforms and investments proposed by Member States in their national Recovery and Resilience Plans (RRPs). These plans must align with the EU’s green and digital transformation goals. At least 37% of each RRP must be dedicated to climate-related objectives.

The RRF has 6 policy pillars:

• Green Transition – e.g., investments in renewable energy or climate-resilient agriculture.
• Digital Transformation – such as expanding broadband or digital education.
• Smart, Sustainable and Inclusive Growth – especially supporting SMEs (small and medium-sized enterprises).
• Social and Territorial Cohesion – reducing inequalities between regions and groups.
• Health and Resilience – strengthening healthcare and crisis preparedness.
• Policies for the Next Generation – promoting education, skills, and youth employment.

The RRF follows a performance-based system. Funds are disbursed only after a Member State has met specific milestones and targets. This ensures accountability and progress. A list of 14 common indicators across all six pillars has been set in this Regulation.

Monitoring and Transparency Tools

To move from theory to practice, EU citizens and stakeholders must be able to see how EU-level financial instruments are implemented on the ground. That is where the following official tools become essential. They do not just illustrate the operationalisation of the RRF - they offer direct, navigable insight into the EU's policy mechanisms in action.

• The RRF Map is an interactive visualisation tool that provides tangible examples of reforms and investments supported under the RRF in each Member State.
• The RRF Scoreboard is a dynamic tool that tracks the implementation of each country’s Recovery and Resilience Plan (RRP). It shows how funds are being spent and how far countries have progressed in meeting their reform and investment targets.
• The Milestones and Targets Section of the RFF Scoreboard outlines the specific commitments made by each country in their RRP and tracks whether these are being fulfilled.
• National and regional government portals linked through the RRF framework are where real-world opportunities are listed - calls for funding, technical assistance schemes, support for SMEs, and more.

Outcome-Based Mechanisms are innovative tools that shift the focus of funding from paying for activities to paying for results. They are especially useful in addressing complex social and environmental issues, like youth unemployment, homelessness, or environmental restoration.

Instead of traditional grants, these tools involve contracts where investors provide upfront capital to social purpose organisations (SPOs), such as NGOs or social enterprises. If the SPOs deliver measurable, pre-agreed results, then an outcome payer (like a government or donor) reimburses the investors - sometimes with a return.

To sum up, actors involved include:

Service Provider (SPO): usually a social enterprise, non-profit, or NGO. Their role is to deliver the service or intervention (e.g., education, health, employment support).

Investor: provides upfront capital to the SPO. These can be impact investors, philanthropic foundations, or even commercial lenders willing to take outcome-based risk.

Outcome Payer: the entity that reimburses the investor if, and only if, the intervention meets the agreed-upon results. This could be a government agency, a donor, or a philanthropic foundation.

Evaluator: an independent party responsible for measuring and verifying whether the outcomes have been achieved, based on transparent, pre-defined indicators

Key examples:

Social Impact Bonds (SIBs): a contract where private investors fund a social service intervention upfront. If the agreed-upon outcomes (e.g., reduction in unemployment or improved school attendance) are achieved, the outcome payer repays the investor, often with a small return. The service provider has freedom in how they deliver the service, but payment is strictly tied to outcomes. If the results are not achieved, the investor may lose some or all of their investment.

Development Impact Bonds (DIBs): similar to SIBs, but typically used in international development settings. The key distinction is that outcome payers are often international donors or development agencies rather than national governments. DIBs are often used in low-resource environments where there is a need for upfront investment and a strong incentive for results-driven interventions in sectors like health, education, and agriculture.

Payment-by-Results (PbR): a broader term for contracts where payment depends on verified outcomes. Unlike SIBs or DIBs, PbR contracts do not always involve third-party investors. Instead, service providers are directly paid by the government or donor only when certain outcomes are met. PbR mechanisms are frequently used in public service reform, particularly in employment services, education, or health care, where measurable outcomes (e.g., job placements or vaccination rates) can be tracked.

Schemes Social Success Notes (SSN): an innovative hybrid mechanism that encourages private investment in early-stage social enterprises. Donors or philanthropic actors agree to reward investors if the enterprise achieves social outcomes - essentially subsidizing the risk. SSNs differ from SIBs and DIBs in that they usually do not require full public or donor repayment of investment. Instead, they provide performance-based incentives to reduce the risk premium for early-stage investors. This mechanism is well-suited for growing the pipeline of investable social enterprises.

Why does this matter for SMEs?

SMEs and social enterprises can act as the service providers in these schemes. This gives them access to funding and visibility, provided they can deliver impactful outcomes. It also aligns funding with their mission and performance.

What are OUTCOME FUNDS?

Think of these as pooled capital vehicles that finance multiple outcome-based contracts. Instead of funding projects one by one, governments or donors can support a portfolio of OBMs. This allows for greater efficiency, coordination, and impact at scale.

The EIF is one of the European Union’s key tools for helping SMEs, especially those that are considered too risky by traditional banks. For those thinking about starting a business or expanding, this is an important one to know.

How does the EIF support SMEs? First off, they provide venture capital and microfinance to start-ups, particularly those in fields like tech, clean energy, or social innovation. They also offer loan guarantees to banks. What does that mean for an entrepreneur? It means that banks are more likely to lend to a business because the EIF reduces the risk for them. This makes loans more accessible and affordable for all businesses. Lastly, the EIF helps develop stronger capital markets, encouraging more innovation and entrepreneurship across Europe.

To seek finance, it is possible to contact EIF intermediaries in your country  to check eligibility for equity and debt products.

The European Social Fund (ESF) is the EU’s primary tool for investing in people, and it is especially helpful for social enterprises and SMEs focused on employment, social inclusion, and skills development.

The ESF funds a variety of projects, from training programs that help people enter or re-enter the job market, to social innovation projects tackling poverty or exclusion, and initiatives promoting equal opportunities, lifelong learning, or inclusive education. If your business or social enterprise is aligned with these goals, ESF could be a perfect fit for you.

Unlike some EU programmes that are run centrally from Brussels, the ESF operates under what is called shared management. This means that each individual EU Member State, through its national or regional authorities, is responsible for running the programme in its own country. This includes selecting which projects receive funding, overseeing how the money is spent, monitoring progress, and making payments to project implementers.

So, if you are applying for ESF funding, you will not be dealing directly with the European Commission. Instead, you will be working with the relevant ministry, agency, or managing authority in your country. They decide the priorities, publish the calls for proposals, and handle all stages of the application and funding process. In short: the rules and procedures may vary slightly from country to country, depending on national priorities and systems, but the overall framework is set by the EU.

Begin by exploring your country’s ESF Work Programme to understand the available priorities, funding opportunities, and how to apply. Pay special attention to dedicated streams such as Social Innovation, which focuses on social economy development, and the EaSI component, which supports projects in the broader field of social investment.

When you are ready to prepare your proposal, make sure to review the official guidance in the Instructions on how to apply for EU funding.

To find open calls and submit your application, head to the EU Funding and Tenders Portal, where all current opportunities are listed.

InvestEU presents a major EU programme that is all about mobilizing both private and public investment in Europe. The goal is to close the investment gap, particularly for sustainable projects and SMEs, especially in areas like green and digital transitions. If your business is involved in innovation, sustainability, or tech, this could be a great fit for you.

InvestEU has a few key components:

• The InvestEU Fund, already analysed in Unit 3, which provides guarantees to attract private investors to projects that are socially or environmentally beneficial
• The InvestEU Advisory Hub, which helps project promoters, like SMEs, improve their project design and get the technical support they need. This is a great resource for those of you working on long-term, sustainable projects that need that extra layer of support to bring them to life.

InvestEU focuses on four key investment areas:

1. Sustainable infrastructure (think renewable energy or smart mobility)
2. Research, innovation, and digitalization
3. Small and medium-sized enterprises
4. Social investment and skills

If your SME fits into any of these areas, InvestEU can help connect you with equity and debt funding through their intermediaries. For those of you who are running younger or higher-risk businesses, InvestEU is especially important because it makes funding more accessible. If traditional banks are not an option for you, InvestEU-backed intermediaries can provide much-needed financial support.

To get started with InvestEU, visit the Access to Finance Portal to find the programme’s partners in your region. Also, be sure to reach out to your local chamber of commerce or SME support centre for guidance, they can help you prepare your funding applications.