Knowledge on EU policy & regulation
Bridging the EU’s Climate Investment Gap
How Viegand Maagøe Supports private and public sector on green project finance
How Viegand Maagøe Supports private and public sector on green project finance
In her 2025 State of the Union address, President Ursula von der Leyen underlined that Europe’s competitiveness and climate agenda are inseparable — a view we fully share at Viegand Maagøe. The recently published evaluation of the EIB Group’s Climate Bank Roadmap 2021–2025, which we had the honour to lead, confirms the urgency of scaling investment and ensuring a broader, more balanced impact across sectors. Europe must mobilise €13–16 billion for technology infrastructures by 2030, with the largest gaps in clean energy, hydrogen, the circular economy, AI, and quantum technologies.
Among EU institutions there is now a clear vision for the way forward. In the coming months, several initiatives will be launched, including a Grids Package to reinforce electricity and gas networks and accelerate permitting, an Industrial Accelerator Act to support strategic technologies, and new instruments such as the Battery Booster to ensure European autonomy in this part of value chain. The European Commission has also proposed a €400 billion European Competitiveness Fund and a Single Market Roadmap to 2028, designed to strengthen industrial resilience and secure Europe’s leadership in the global green transition.
First, it underlines the importance of closely monitoring EU market developments. European initiatives and policy trends will directly influence investment conditions, as they will shape which technologies and business models attract financing. For Danish companies, this means keeping a finger on the pulse of EU instruments is no longer optional — it is essential for securing the right funding at the right time.
Second, companies should actively look to secure financing from EU sources. Both Member States and EU institutions — such as the European Investment Bank — recognise that current funding systems are fragmented and SMEs remain underrepresented in climate and energy finance. Over the coming years, this is expected to change.
At Viegand Maagøe we can see that efforts are underway to unlock EU funding to a much greater extent for small and medium-sized enterprises. An example of this is the ongoing effort to adjust the rules and priorities of the Innovation Fund, with a view to making procedures more accessible for smaller companies and provide them with more support at national level, through for example activities of Innovation Fund National Contact Points.
Third, companies seeking EU support must now present their projects not only as climate investments but also as contributions to energy independence, industrial strength, and innovation. In today’s economic context, energy security, competitiveness, and technological leadership are understood as three sides of one triangle.
What we observe is an imbalance between project pipelines, available funding, and ease of access to finance. Even when funding opportunities exist, many projects — especially small and medium-sized ones — face difficulties. The reasons are diverse: lack of credible offtake and partner agreements, high electricity prices, elevated risks linked to unproven technologies, and long timelines to reach market maturity.
The European Investment Bank’s Unlocking Innovation (2025) report warns that unless this financing gap is closed, Europe risks losing ground in industrial competitiveness. The Danish experience mirrors the EU-wide situation: demand for support is rising, project maturity is improving, but the financing gap persists. In Denmark’s September 2025 EUDP call, 92 projects requested DKK 891 million (€119 million) in support, while only DKK 299 million (€40 million) was available. The strongest demand came from projects in green electricity, energy efficiency, and sustainable biomass/biogas. In practice, needs far exceed the budget: only about one-third of applicants can expect support, leaving many promising projects unfunded.
Bridging financing gap requires strong project preparation and alignment with EU priorities — precisely the areas where Viegand Maagøe delivers expert advisory services for our clients.
Viegand Maagøe is a specialised energy and climate advisory firm with more than 180 experts in Copenhagen, Aarhus, Brussels, Delft, and Seville. For over 18 years, we have supported governments, investors, and companies in designing and implementing climate solutions.
Just recently, the Danish Energy Agency appointed us as official validation partner for Innovation Fund applications, recognising our ability to combine technical, financial, and policy expertise. This makes us uniquely positioned to help project promoters navigate one of the world’s most competitive climate funding programmes.
The Innovation Fund (IF) is one of the EU’s largest climate instruments, financed by EU ETS revenues. Since 2020, it has allocated over €11 billion to more than 200 projects, covering energy-intensive industries, renewables, hydrogen, carbon capture, storage, and net-zero mobility. Its impact is significant: current projects are expected to cut 870 MtCO₂e over ten years of operation.
Originally designed as a grant-based scheme, the Fund has evolved into a more flexible toolkit. Alongside large- and small-scale calls, the Commission now uses auctions to accelerate deployment and lower costs. The 2025 Heat Auction (IF25) is the next milestone: a €1 billion competitive call for electrified and renewable industrial process heat solutions, from heat pumps and electric boilers to plasma torches and solar-thermal systems.
Innovation Fund applications are demanding. They require robust GHG avoidance calculations, credible financing models, technical feasibility, and alignment with EU policy. Many projects fail not because they lack potential, but because their applications do not meet these stringent standards.
Viegand Maagøe provides structured support through:
Our approach ensures that clients submit not just eligible projects, but competitive applications that stand out in a crowded field. Our experience spans large-scale district heating, hydrogen and carbon capture projects, as well as SME-driven small-scale applications, where simplified but credible financial and technical modelling is key.
Europe’s innovation ecosystem faces a triple challenge: rapidly scaling up investments, securing industry demand, and diversifying financing sources. Programmes like the Innovation Fund and EIB’s climate finance are critical – but competition and complexity require expert navigation.
At Viegand Maagøe, we help our clients transform ambition into bankable, fundable projects. By combining deep policy insight, advanced financial modelling, and cutting-edge technical expertise, we ensure that promising innovations move from concept to market — enabling our clients to be competitive and stay at the forefront of the green transition.