Horizon Europe: A new funding opportunity for Australian innovation

Article
Published: 
Authors: Nicola Purser

Australia’s planned association to Horizon Europe will give eligible Australian organisations greater access to European research and innovation funding. With participation in 2027 calls approaching, businesses should begin considering where their expertise could contribute to an international project.

About the program

Horizon Europe is the European Union’s flagship research and innovation funding program for 2021 to 2027. It brings together businesses, universities, research institutes and other organisations to address shared challenges through collaborative projects.

Australia is now associated with Pillar Two, which focusses on global challenges and European industrial competitiveness. Following the conclusion of association negotiations, the European Commission advised that Australian entities would be able to access Pillar Two funding from January 2027 under transitional arrangements, including the ability to lead project consortia on equal terms with other EU member states.

Pillar Two covers six clusters:

  • Health
  • Culture, creativity and inclusive society
  • Civil security for society
  • Digital, industry and space
  • Climate, energy and mobility
  • Food, bioeconomy, natural resources, agriculture and environment.

These themes provide potential opportunities for Australian businesses working in areas such as biotechnology, software and artificial intelligence, advanced manufacturing, clean energy, agriculture and environmental technology. However, operating in a relevant sector is only a starting point. The proposed project must align with the requirements of a specific funding topic.

Participation does not necessarily mean developing or leading an entire international project. An Australian business may contribute as a specialist partner within a larger consortium, providing technology, research expertise or other capabilities needed to deliver the project.

Funding overview

Horizon Europe’s Pillar Two represents more than €53.5 billion in funding across 2021 to 2027. Australia’s planned association will provide eligible Australian organisations with access to 2027 Pillar II funding calls, rather than the entire seven-year funding pool.

Funding opportunities typically support:

  • Research and technology development that generates new knowledge or explores the feasibility of innovative solutions
  • Prototyping, piloting and demonstration of new or improved products, processes and services
  • Coordination and collaboration activities that support research and innovation objectives.

This funding provides a pathway for Australian businesses to contribute to large-scale international projects, strengthen research partnerships and develop innovative solutions to shared global challenges.

How BDO can help

BDO’s R&D and government incentives team can help you explore funding opportunities aligned with your business’s research and innovation plans. Our global network enables collaboration with our Europe team, so we can help you identify potential Horizon Europe opportunities and explore consortium connections. To discuss how your business could participate, contact us today.

Key takeaways

  • Eligible Australian organisations will be able to access 2027 Horizon Europe Pillar Two funding calls under transitional arrangements from January 2027, including opportunities to join or lead international project consortia
  • Pillar Two represents more than €53.5 billion in funding across 2021 to 2027, supporting collaboration across health, digital technologies, industry, climate, energy, agriculture and other global challenges. Australia’s association relates to the 2027 calls, rather than the full seven-year funding pool
  • Funding supports research and technology development, prototyping, piloting and demonstration, alongside coordination activities. Australian businesses can contribute specialist expertise as consortium partners without needing to coordinate an entire project
  • Businesses interested in 2027 opportunities should begin preparing now, identifying relevant funding topics, exploring potential partnerships and defining their contribution. Funding is competitive, and each proposal must address the specific call requirements.

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