Policy_EU_Funding_ Learning Bites

EU Funding Essentials for Impact Investors

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Objectives

Objective 01

Gain a clear understanding of the key EU funding mechanisms available for impact investors, along with the important frameworks that shape these opportunities.

Objective 02

Identify the main objectives of these funds and discover how they can support your social impact investment projects.

Objective 03

You will discover the steps to effectively access these funding opportunities

Each module will feature links for further learning! These engaging modules are designed to guide you through the various EU Funds and Policy frameworks with ease.

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Index

Introduction

Module 1

Module 2

Module 3

Module 4

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Introduction

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Introduction

Funding for Fair Future

As we confront a global climate crisis, we face the dual challenge of addressing environmental threats while tackling persistent social inequalities. The United Nations Sustainable Development Goals (SDGs) provide a vital roadmap, emphasizing our commitment to leave no one behind by prioritizing those who are furthest behind.Impact investors—diverse actors committed to driving measurable positive impacts for people and the planet—have the power to mobilize resources to tackle these challenges. By adopting a holistic approach that integrates social and environmental considerations, we can develop strategies and tailored financial instruments to support these efforts effectively.There are four engaging learning modules, where you'll explore various EU funds and frameworks designed to address these pressing issues. At the end we will conclude with a quick knowledge check to reinforce your understanding and help you leverage these resources as an impact investor.

Module 1

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Social Frameworks

Module 1

Welcome to Module 1This module introduces key EU social policies, funding mechanisms, and strategic initiatives that support social investment. As impact investors, your role in advancing social goals is essential for building an inclusive and resilient economy. This module will give you practical insights into how the EU’s social policies align with investment opportunities in social enterprises and impact projects.

Learning ObjectivesBy the end of this module, you will be able to:• Identify core EU social policies that guide and support social impact investment.• Understand how the Social Economy Action Plan and other EU initiatives create investment-ready environments for socially impactful projects.

Module 1

The European Pillar of Social Rights

Why This Matters for Impact Investors?The European Pillar of Social Rights serves as a roadmap for funding initiatives that foster social equity. Impact investors can align their portfolios with these principles, ensuring investments contribute to equitable growth while accessing funding targeted at inclusive projects.

The European Pillar of Social Rights (the Social Pillar) launched by the European Commission in 2017. The Social Pillar delivers new and improves existing social rights for people across Europe, and serves as the EU’s compass to achieve better working and living conditions in Europe. The Pillar sets out 20 key principles and rights essential for fair and well-functioning labour markets and social protection systems, structured around three chapters: • Fair Working Conditions: Supporting fair wages, safe workplaces, and opportunities for skill development. • Equal Opportunities: Addressing barriers to employment and career advancement, especially for marginalized groups. • Social Protection and Inclusion: Ensuring that everyone, including the vulnerable, has access to basic needs like healthcare, education, and financial support.

Module 1

The Social Economy Action Plan

Goals and Objectives:The Action Plan’s main goal is to support organizations and businesses that deliver social and environmental benefits while generating economic returns.

The Social Economy Action Plan is the EU’s strategy for creating a sustainable, inclusive economy by empowering social enterprises and impact-driven businesses. This plan is especially relevant for impact investors as it also presents funding opportunities available to support the social economy.

Pillars Relevant to Impact Investment:

• Skills Development and Employment: Investing in upskilling programs that enhance employability, especially in underserved communities, drives economic inclusion—a critical outcome for impact investors seeking measurable social returns.
• Access to Finance: Through initiatives like loan guarantees and grants for social enterprises, the Action Plan helps impact investors de-risk their investments, opening doors for sustainable growth.
• Supportive Regulatory Framework: Simplified regulations make it easier for investors to understand impact measurement, due diligence, and compliance in social enterprises.

Module 1

Other Relevant EU Initiatives and Frameworks

Horizon Europe: As the EU’s primary research and innovation program, Horizon Europe includes projects in social inclusion, public health, and environmental sustainability. By investing in these projects, impact investors can access funding for innovative social solutions with strong financial prospects.

European Skills Agenda: The European Skills Agenda is a five-year plan to help individuals and businesses develop more and better skills and to put them to use. This plan focuses on training and workforce development. Investors can support programs that align with skill-building and education, increasing employability and fostering inclusive economic growth.

Module 2

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Spotlight on EU Funding

Module 2

Welcome to Module 2This module dives into the EU’s major funding mechanisms for social projects, specifically the European Social Fund Plus (ESF+) and the InvestEU Fund. Both funds are instrumental in strengthening Europe’s social framework, supporting social protection systems, and creating skilled, resilient communities. In this module, you’ll learn how impact investors can leverage these funds.

Learning ObjectivesBy the end of this module, you will:• Understand the main objectives and opportunities provided by ESF+ and InvestEU.• Recognize how these funds can complement social impact investment projects.• Identify practical steps to access and align investments with EU social funding priorities.

Module 2

Did you know?

European Social Fund Plus (ESF+)

Main objectives of ESF+:

• Enhance social protection: ESF+ finances projects that fortify social welfare systems, thereby improving access to healthcare, education, and essential services.
• Develop a skilled workforce: This encompasses funding for vocational training, lifelong learning, and upskilling to align with labor market needs.
• Combat poverty and social exclusion: ESF+ directly supports initiatives aimed at reducing poverty, empowering marginalized communities, and fostering social inclusion.

The European Social Fund Plus (ESF+) is the EU’s primary instrument for investing in people. It plays a vital role in enhancing social protection, reinforcing health and welfare systems, and developing a skilled, resilient workforce. Since 2021, ESF+ has expanded its scope to include funding projects that address poverty and social exclusion, making it a valuable resource for social impact investors.

Relevance for Impact Investors: ESF+ offers co-funding opportunities for impact-driven projects that target societal issues. For example, impact investors involved in workforce development projects can use ESF+ funding to expand training programs, creating scalable and sustainable employment pathways. It also supports cooperation between public and / or private entities of any type with the aim to ease access to finance for social entrepreneurs.

Module 2

InvestEU Fund

Main Objectives of InvestEU Fund:

• Address Funding Gaps: InvestEU fills financing gaps where private investment alone may not suffice, providing loan guarantees, equity financing, and risk-sharing mechanisms.
• Support for Social Investments: InvestEU prioritizes investments in social infrastructure (e.g., affordable housing, healthcare facilities) and inclusive employment, making it ideal for impact investors focused on generating social returns.
• Integrated Social and Environmental Projects: InvestEU’s emphasis on sustainable development encourages projects that address both social and environmental needs, aligning well with the SDGs.

The InvestEU Fund is one of the three core pillars of the InvestEU Programme. It brings together under one roof a range of previous EU financial instruments. It aims to boost investments in areas currently characterised by market failures or investment gaps over the period 2021-27. The EU provides a €26.2 billion guarantee to cover the risk of investments which is expected to crowd in private and public investments and mobilise an additional €372 billion.

Key Components for Impact Investors:• Social Investment and Skills Window: This funding window specifically targets projects that enhance education, skills training, and social inclusion. Impact investors working on workforce development or social housing can access co-financing opportunities under this window. • SMEs and Innovation: By focusing on innovative social enterprises and SMEs, InvestEU offers impact investors a channel to support projects with both high impact and growth potential.

Module 2

Did you know?

The InvestEU Advisory Hub

The InvestEU Advisory Hub is one of the three pillars of the InvestEU Programme, operating alongside the InvestEU Fund and the InvestEU Portal. As a comprehensive assistance service, the Advisory Hub serves as a centralised platform connecting project promoters and financial intermediaries with advisory partners to facilitate the transformation of business concepts and project ideas into viable investment ventures. The advisory support is delivered in the policy priorities of the InvestEU Programme, such as sustainable infrastructure; research, innovation, and digitalisation; small and medium-sized enterprises; and social investment and skills window - the most relevant window for social investors. Moreover, the service offers support for cross-sectoral and horizontal investment areas that show a clear market gap.

Who can apply for advisory support? Public authorities, private project promoters, and financial intermediaries can get advisory support and technical assistance in identifying, preparing, developing, structuring, and implementing investment projects across the European Union, including financial capacity building.

Good to know The InvestEU Advisory Hub offers support to social investors, irrespective of their application to the InvestEU Fund. Although many advisory initiatives are tied to specific InvestEU financial products, independent applications are also welcomed. Be aware that social investors who apply to the Advisory Hub services do not receive automatic financing support from the InvestEU Fund.

Module 2

How and why to apply

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Other useful EU Funds supporting the Social Agenda

Erasmus+: Investing in Education, Training, and Skills Development While often known for student exchanges, Erasmus+ also provides substantial funding for projects that support skills development, vocational training, and social inclusion across Europe. This funding is increasingly relevant for impact investors focused on workforce development and social mobility, as it supports skill-building projects that prepare people for the job market, particularly from disadvantaged or marginalized backgrounds.

Single Market Programme:The Single Market programme provides an integrated package to support and strengthen the governance and functioning of the Single Market. This programme is a modern, simple and flexible programme, which consolidates a large range of activities that were previously financed separately, into one coherent programme.

Module 2

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Useful Links

Case studies

Impact Europe EU Funding Watch Page

Useful Links

InvestEU Fund statistics

Module 3

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Environmental Framework

Module 3

Welcome to Module 3 of our learning journey! This module dives into key EU environmental frameworks aimed at fostering sustainable growth, reducing environmental impacts, and supporting climate action. These frameworks, part of the EU’s broader climate strategy, open several funding channels for impact investors who want to drive positive environmental change.

Learning ObjectivesBy the end of this module, you will: • Understand the major environmental frameworks. • Identify the relevant funding available to impact investors within each framework• Learn about direct and indirect investment pathways to access these funds

Module 3

The European Green Deal

The European Green Deal is the EU’s flagship climate policy, setting a path for the EU to reach net-zero emissions by 2050. It includes a comprehensive set of strategies targeting carbon neutrality, renewable energy, biodiversity, and circular production

Funding available for Impact Investors • Just Transition Mechanism (JTM): Helps high-carbon regions transition to green industries. • Innovation Fund: Invests in low-carbon technologies. • European Regional Development Fund (ERDF): Focuses on green infrastructure and renewable energy in less-developed areas.

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IMPORTANT: These funds are often managed by regional authorities. Investors usually participate indirectly through co-investments with local governments or through public-private partnerships (PPPs).

Module 3

Circular Economy Action Plan (CEAP)

The Circular Economy Action Plan (CEAP), one of the building block of European Green Deal, seeks to reduce waste by promoting the reuse, repair, and recycling of products, particularly in sectors like electronics, plastics, and textiles. It focuses on resource efficiency and aims to create sustainable production models

Funding available for Impact Investors The LIFE Programme, with a €5.4 billion budget for 2021–2027, includes a key sub-programme, circular economy and quality of Life. This sub-programme supports the transition to a sustainable, circular, toxic-free, energy-efficient, and climate-resilient economy while enhancing environmental quality.It funds innovative and best-practice solutions through Standard Action Projects (SAPs) and facilitates the implementation of EU environmental policies via Strategic Integrated Projects (SIPs)• Horizon Europe: Supports innovation in sustainable production

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Module 3

EU Biodiversity Strategy for 2030

This strategy focuses on conserving and restoring Europe’s natural ecosystems through expanded protected areas and ecosystem restoration. It supports the protection of biodiversity as a core part of the EU’s environmental goals.

Funding available for Impact Investors • LIFE Programme: Directly supports biodiversity and conservation projects. • Horizon Europe (Cluster 6: Food, Bioeconomy, Natural Resources, Agriculture, and Environment)Access: Direct applications for LIFE funds are available through the European Climate, Infrastructure, and Environment Executive Agency (CINEA)

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Module 4

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Exploring Digital and Tech Investment Opportunities

Module 4

If you are still here, you made it to the last module, Module 4! Welcome to Module 4, where we explore the intersection of digital innovation and impact investing. As technology continues to evolve, it plays a pivotal role in addressing social and environmental challenges. This module will highlight key EU frameworks and funding mechanisms that promote digital transformation and support impact investors seeking to leverage technology for positive change

Learning ObjectivesBy the end of this module, you will: • Have an overview of some programs supporting digital agenda and innovation• Identify relevant funding instruments for technology-driven projects• Recognize pathways for impact investors to engage with these initiatives

Module 4

Digital Europe Programme ( DIGITAL)

The Digital Europe Programme aims to enhance Europe’s digital transformation by funding projects that develop advanced digital skills, promote AI, and strengthen cybersecurity. With an overall budget of over €8.1 billion, DIGITAL aims to shape the digital transformation of Europe’s society and economy, in line with EU’s goals defined in the Communication - 2030 Digital Compass: The European way for the Digital Decade and in the Policy Programme - Path to the Digital Decade.Key Objectives:• Develop digital skills across various sectors.• Accelerate the adoption of artificial intelligence (AI).• Strengthen the digital infrastructure and cybersecurity across the EU.

Module 4

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European Innovation Council (EIC)

The European Innovation Council (EIC), launched under the Horizon Europe programme, is a transformative funding initiative with a €10.1 billion budget. It supports groundbreaking innovations at every stage of development, from early research and proof of concept to technology transfer. The EIC also provides essential funding for start-ups and SMEs, helping them scale and bring disruptive technologies to market.Key Objectives: • Identify and support high-potential start-ups and scale-ups. • Facilitate access to markets for innovative technologies. • Promote collaboration between innovative firms and research institutions.

The EIC Fund is the European Innovation Council’s venture arm, designed to back groundbreaking deep tech innovators. With the European Commission as its shareholder, it provides critical investment through the EIC Accelerator to start-ups, SMEs, and mid-caps revolutionizing their markets. As a bold risk-taker, the fund bridges funding gaps, scales transformative European technologies, and attracts co-investment to drive innovation forward.

THE EIC FUND

Module 4

Become expert evaluator!

Innovation Fund

Funded by revenues from the EU Emissions Trading System, the Innovation Fund is one of the largest global programs driving the development of innovative low-carbon technologies. Its mission? To support groundbreaking clean-tech solutions and flagship projects that deliver major greenhouse gas and emissions reductions, creating a lasting impact across Europe.What Does the Innovation Fund Support?Energy-intensive industries: Driving sustainability in traditionally high-emission sectors.Renewables: Accelerating the deployment of clean energy solutions.Energy storage: Enhancing systems to ensure reliable energy supply.Net-zero mobility and buildings: Developing carbon-neutral transport and construction innovations.Hydrogen: Supporting its role as a future clean energy solution.Carbon capture, use, and storage (CCUS): Turning emissions into resources or safely storing them.

Financial Instruments: Grants: Funding to cover up to 60% of eligible project costs, with disbursements linked to project milestones or performanceProject Development Assistance (PDA): Support to mature promising ideas into bankable projectsSynergies with other EU funds: Leveraging additional financial mechanisms to maximize impact

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Quiz

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What is the main purpose of the European Social Fund Plus (ESF+)?

To promote military funding

To invest in people and enhance social protection

To fund digital infrastructure

Quiz 1/5

Which of the following is a key objective of the InvestEU Fund?

To eliminate private investments

To promote tourism

To address funding gaps for social investments

Quiz 2/5

Quiz 3/5

What is the role of the InvestEU Advisory Hub?

To connect project promoters with advisory partners for investment projects

To fund cultural heritage projects

To manage public relations for the EU

Quiz 4/5

What is one of the benefits of leveraging EU funding for impact investors?

It restricts investments to social projects only

It eliminates the need for private investment

It helps scale social impact and reduce investment risk

Quiz 5/5

Which program focuses on fostering social inclusion through education and training?

InvestEU Fund

Erasmus+

European Regional Development Fund

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This project has been realised thanks to the financial support of:

With a robust €142.7 billion budget for 2021-2027, ESF+ fuels the EU’s policies on employment, education, skills, and social cohesion, working to close gaps between Member States and regions.The ESF+ funding operates in two ways:Shared management: Member States manage €142 billion in partnership with the EU, including €95.1 billion from the EU budget.Employment and Social Innovation (EaSI): The EU directly manages €762 million to boost employment and social projects across Europe.

Did you know?

Under InvestEU, the European Investment Bank Group (EIBG) is the main advisory partner to the European Commission , delivering advisory services to promoters as well as providing strategic support to the European Commission to develop and reinforce advisory initiatives.

Your opportunities

Funding opportunities

Single Market Programme The Single Market Programme covers the following 6 objectives:- Food safety - Consumer protection - Support to businesses - A more effective single market - Supporting the development of standards and reporting - Producing and disseminating high quality European statistics

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• technical experts with in-depth knowledge in one or more of the categories covered by the Innovation Fund, with extensive project implementation experience;

• financial experts in investment banking, project development and/or financial consultancy, with experience in corporate or project finance including due-diligence, bankability, and risk analysis of projects;

Want to become an expert evaluator?

CINEA is calling on expert evaluators and rapporteurs to evaluate proposals to be received under the new calls for proposals under the Innovation Fund. This is a unique opportunity to evaluate the most innovative and disruptive net-zero project proposals.

Funding Opportunities:

• EIC Accelerator: Provides grants and equity investments to innovative companies

• EIC Pathfinder: Funds early-stage research and development for ground-breaking ideas

Why and How to apply

How to apply

Erasmus +Organisations wanting to participate in Erasmus+ may engage in a number of development and networking activities, including strategic improvement of the professional skills of their staff, organisational capacity building, and creating transnational cooperative partnerships with organisations from other countries in order to produce innovative outputs or exchange best practices.

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From Capacity Building to Risk Sharing

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How to Apply? The package of InvestEU products - whether debt, equity or capacity building investments - is structured in a manner which gives the thematic focus main stage. Financial Intermediaries are able to apply to one or more Guarantee products (or Thematic Strategies under the Equity product) depending on their business focus and strategy.

About the InvestEU Portal