KMU-innovativ: energy efficiency, climate protection and adaptation

Up to 70% funding for climate research. Two stages, competitive, with no volume limit.

KMU-innovativ climate is the climate and environment strand of the BMFTR's KMU-innovativ initiative. The programme funds high-risk leading-edge research by small and medium-sized companies in energy efficiency, greenhouse gas reduction, climate-relevant cross-cutting technologies, renewables and climate adaptation. The project management agency is the DLR project management agency, environment and sustainability division, Bonn. The procedure has two stages: a project outline by the deadline, then, on a positive assessment, a full application. The deadlines are 15 April and 15 October each year. The next deadline is 15 October 2026. The funding guideline runs to 30 June 2027.

Eligibility

SME status under the EU definition (GBER Annex I): fewer than 250 employees and annual turnover of no more than €50m or a balance sheet total of no more than €43m. Linked and partner companies are counted pro rata.
The operating site and registered office are in Germany.
The project qualifies as industrial research or experimental development within the meaning of Art. 25 GBER.
Leading-edge character: the project has to go beyond merely applying established efficiency or climate technology (best available technology, BAT).
The thematic field of energy efficiency, climate protection or climate adaptation: the research core has to lie in one of these areas (energy efficiency, greenhouse gas reduction, climate-relevant cross-cutting technologies, renewables, climate adaptation).
A quantifiable climate or energy effect: CO2 savings in tonnes CO2e a year, energy savings in MWh a year or a comparable adaptation effect has to be presentable and plausibly derived against a baseline scenario or BAT.
At least one qualified R&D specialist in energy, climate or environment, or cooperation with a relevant research institution.
Not an undertaking in difficulty under Art. 2 no. 18 GBER.
No outstanding EU recovery order for unlawful aid (Art. 1 (4) (a) GBER).
The project may only start once the funding decision has been served (the ban on an early start).
No double funding of the same costs through other climate or energy programmes (the BMWK's EEW programme, KfW climate programmes, Horizon Europe cluster 5 and so on).

Eligible costs

Staff costs: gross pay including the employer's social security contribution, apportioned to the R&D project (time records required). Typically process engineers, energy technicians, environmental engineers, measurement technicians.
Materials and consumables: materials, reagents, sensors, small components, fuels and energy carriers for trial operation, consumables for measurement and analysis work.
Equipment and plant (depreciation share): pro rata depreciation on test rigs, measurement technology, monitoring sensors, pilot and demonstration plant, heat exchangers, test components. For investment above €200,000, coordinate with DLR-PT early.
Travel: project-related business travel under the BRKG (specialist conferences, consortium meetings, pilot user visits, field measurements).
External services and subcontracts: life cycle assessments (LCA), external measurement services, accredited test laboratories (DIN EN ISO 17025), emissions measurements, climate accounting advice, external flow, energy and climate simulations.
IP costs (pro rata): project-related patent searches and filings.
Project flat rate (universities as consortium partners only): 20% on the total grant for overheads, with no itemised evidence required.

Common pitfalls

Missing the deadline

The next chance only comes six months later. The deadlines are 15 April and 15 October. Don't submit on the deadline day itself; easy-Online can be overloaded. Allow at least two to three weeks' lead time.

CO2 savings not quantified

A missing or implausibly derived climate or energy effect is the most common ground for rejection. CO2 savings in tonnes CO2e a year and energy savings in MWh a year have to be stated, both for the project and in a market ramp-up scenario. Disclose the assumptions and sources (UBA emission factors, ProBas, ecoinvent).

No leading-edge character

Merely applying established efficiency or climate technology is rejected. The project has to go beyond best available technology (BAT) methodologically or technologically. Document the comparison with BAT and the current state of research (relevant journals) explicitly.

The wrong project management agency

For this climate line only the DLR project management agency, environment and sustainability division, Bonn, is responsible. Submitting to PtJ Jülich (resources and circular economy) or VDI/VDE-IT (ICT and AI) leads to rejection.

Starting the work early

No project start before the funding decision is served. That also covers orders for pilot plant, construction contracts and project-related hiring. Submitting the outline and scientific preparatory work don't count as starting the project.

No life cycle view

Trade-offs between the production and operating phases have to be addressed. Even a qualitative LCA concept (DIN EN ISO 14040/44) is better than saying nothing. For material-intensive projects (batteries, hydrogen components) the LCA is particularly critical.

Double funding of the same costs

The same cost blocks may not be funded simultaneously by KMU-innovativ climate and other programmes (the BMWK's EEW programme, KfW climate programmes, Horizon Europe cluster 5). Combination with the Forschungszulage (FZulG) is only possible for different cost blocks.

The application process

1Stage 1 — submit the project outline. Submit the project outline through the easy-Online portal (foerderportal.bund.de/easyonline) to the DLR project management agency, environment and sustainability division. The length is normally 10–15 A4 pages in line with DLR-PT's outline guidance. Mandatory elements: the objective, the state of science and technology with a BAT comparison, the innovative R&D approach, the quantified climate and energy effect, a work plan with measurable milestones, and an exploitation plan with market ramp-up. Also: a short-form SME self-declaration, a brief company profile and, for a consortium, a list of partners and the division of tasks. Deadlines: 15 April and 15 October; next date: 15 October 2026.
2Wait for the assessment. A DLR-PT review panel assesses outlines on scientific and technical excellence, climate and energy effect, work plan, team qualifications, exploitation plan and life cycle view. Feedback comes around 2–3 months after the deadline. Only positively assessed outlines receive an invitation to submit a full application.
3Stage 2 — submit the full application. Submit through easy-Online, typically within 3 months of the invitation. To be submitted: the form AZK (companies) or AZA (universities), a detailed project description, a formal SME declaration (GBER Annex I), an exploitation plan (detailed, with the cumulative climate effect in the market ramp-up), a climate and impact concept (quantitative CO2 and energy savings, an LCA concept), the last 2 sets of annual accounts, a commercial register extract and CVs of the project leadership. For joint projects: a cooperation agreement with IP provisions.
4Approval and project start. The funding decision arrives around 2–3 months after the full application. The project may only begin once the decision has been served, and that includes orders for pilot plant. Ancillary provisions: NKBF 2017 for companies, NABF/ANBest-P for universities.
5Delivery and reporting. Funds are drawn down through profi-Online. Interim reports and interim statements of use are due annually or as DLR-PT specifies. For pilot plant: a climate impact validation report. After the project ends: a final report and statement of use. A performance review report with the climate metrics achieved is due 5 years after the project ends.

How upsmart helps

We match your project against more than 2,000 programmes — including ZIM, the Forschungszulage and every KMU-innovativ line — and deliver a draft outline ready for assessment to DLR-PT's specification, which your team approves. We keep an eye on the 15 April and 15 October deadlines and on the Art. 25 GBER funding rate. Fixed terms, independent of the grant amount.

Combining it with other programmes

Combination with the Forschungszulage (FZulG) is possible, but only for different cost blocks: your own contribution and staff costs not covered by KMU-innovativ can be claimed in the FZulG assessment base. No combination with ZIM, the BMWK's EEW programme, KfW climate programmes or Horizon Europe for the same costs. For pilot plant: KMU-innovativ climate covers the R&D phase; market launch and investment can then be funded through BMWK or KfW programmes, requiring careful delimitation in time and in the cost accounting.

Frequently asked questions

SMEs as defined by the EU can apply: fewer than 250 employees and annual turnover of no more than €50m or a balance sheet total of no more than €43m, with an operating site in Germany. Larger companies, universities and research institutions can take part as consortium partners but not as the lead SME applicant.

For industrial research, small SMEs receive up to 70% and medium-sized SMEs up to 60% of eligible costs. For experimental development it is up to 45% (small) and 35% (medium-sized). With an effective cooperation with a research institution the rate rises by 15 percentage points. As a guide, an SME share of up to €500,000 in eligible costs applies.

The procedure has two stages. First you submit a project outline (normally 10–15 pages) through easy-Online to the DLR project management agency, environment and sustainability division. The assessment deadlines are 15 April and 15 October. The next deadline is 15 October 2026. On a positive assessment comes the invitation to apply in full, with a deadline of 3 months.

KMU-innovativ climate demands a leading-edge character: the project has to go beyond best available technology methodologically or technologically. ZIM also funds applied development. KMU-innovativ climate is additionally limited thematically to energy efficiency, climate protection and adaptation, and runs in two stages (outline then full application). The funding rates can be higher under KMU-innovativ climate.

Yes, but only for different cost blocks. Costs funded by KMU-innovativ climate may not be claimed in the Forschungszulage assessment base. Your own contribution and staff costs not covered by KMU-innovativ can, however, be used for the Forschungszulage. For climate projects with a high staff share, that combination is particularly relevant.

Read on in the blog

Funding strategy across the innovation process

Primary sources

Funding guideline KMU-innovativ: energy efficiency, climate protection and adaptation (BAnz AT 01.03.2024 B5)— Federal Ministry of Research, Technology and Space (BMFTR)
DLR project management agency — KMU-innovativ: energy efficiency, climate protection and adaptation— DLR project management agency, environment and sustainability division
FONA topic portal, KMU-innovativ climate— FONA — research for sustainability (BMFTR)
Förderdatenbank Bund — KMU-innovativ energy efficiency, climate protection and adaptation— Federal Ministry for Economic Affairs and Climate Action / Förderdatenbank
easy-Online application portal— Federal Ministry of Education and Research / DLR-PT

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