EU Earmarks €50 Million for Carbon Removal and Utilisation Startups Under 2027 EIC Accelerator

The European Commission has set aside an indicative €50 million for carbon removal and carbon utilisation startups. The money comes through a new challenge in the European Innovation Council (EIC) 2027 Work Programme.

The challenge, titled Carbon Removal and Utilisation for Climate Change Mitigation and EU Industrial Resilience, targets deep-tech startups and SMEs. It aims to help them demonstrate their technologies at industrially relevant scales and bring them to market faster.

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Part of a €1.8 Billion Innovation Package

The Commission adopted the 2027 EIC Work Programme on November 5, 2026, unlocking €1.8 billion for deep-tech innovators. It's the final EIC funding round under Horizon Europe 2021 to 2027.

Carbon removal is one of four themes in the EIC Accelerator Challenges, which share a total budget of €150 million. The other three cover ocean observation, climate-neutral and smart cities, and fusion power plant technologies.

What the Challenge Will Fund

The challenge has a twin goal. It supports the EU's climate targets while helping secure carbon supply for hard-to-abate sectors like fuels, chemicals and materials, where carbon is embedded in the end product.

Three Priority Areas

• Carbon dioxide removal, including direct air capture with carbon storage (DACCS), biogenic emissions capture with carbon storage (BioCCS) and biochar carbon removal, plus approaches like enhanced rock weathering, direct ocean capture, alkalinity enhancement and CO2 mineralisation in products.

• CO2 capture and utilisation, turning captured carbon into products such as methanol, synthetic natural gas, proteins and fertilisers.

• Quantification, monitoring and verification tools that track carbon removal or reduction impact and methane leakage emissions.

Storing captured fossil CO2 as a gas without chemical transformation falls outside the scope. Hydrogen production technologies aren't covered under this particular challenge either.

Access to Buyers

Selected companies get tailored EIC Business Acceleration Services. That includes facilitated access to the EU CRCF Buyers' Club, which connects startups with committed private buyers of carbon removal.

Applicants may also seek an independent assessment of their removal potential from a carbon ratings agency recognised by the European Securities and Markets Authority (ESMA).

Policy Momentum Behind the Call

The call builds on the EU's Carbon Removal and Carbon Farming Regulation (CRCF), the first EU-wide voluntary certification framework for permanent carbon removals. Its first methodologies for DACCS, BioCCS and biochar carbon removal were adopted in early 2026.

In July 2026, the Commission also proposed bringing permanent removals into the EU Emissions Trading System from 2031. The plan would purchase 250 million tonnes of CRCF-certified DACCS and BioCCS removals.

Funding Terms and Deadlines

EIC Accelerator support can include a grant component of up to €2.5 million and an investment component of €1 million to €10 million. Full proposals for 2027 will be batched for evaluation on January 20, March 17, September 1 and November 4, 2027.

Companies weighing an application can join the online Info Day: Accelerator Challenges 2027 on November 20, 2026. Applications go through the EU Funding and Tenders Portal.

About the European Innovation Council

The European Innovation Council supports breakthrough deep-tech innovation under Horizon Europe, with a budget of more than €10 billion for 2021 to 2027. It backs innovators from early research through commercialisation and scale-up via its Pathfinder, Transition and Accelerator schemes, along with the Scaleup Europe Fund.