On May 19, 2016, the European Commission announced the 2016 Call for proposals for LIFE Action Grants, which offers €337.5 million in funding for environmental and climate action projects in the European Union (EU LIFE Program). The 2016 Call is announced as part of the LIFE Regulation, which was established on December 20, 2013 and offers €3.4B in funding between 2014 and 2020. (Regulation (EU) No 1293/2013 of the European Parliament and of the Council of December 11, 2013.)

The goal of the EU LIFE Program is to promote a shift toward a resource-efficient, low-carbon and climate-resilient economy; protect and improve the quality of the environment; and halt and reverse biodiversity loss. To accomplish this goal, eligible entities, including public and private organizations (including nongovernmental organizations) that are registered in the European Union or the European Free Trade Association, in most cases, can apply to receive funding for up to 60% of their project costs for projects that accelerate the development of new, or the improvement of existing, technologies or solutions that have a positive effect on the environment or resource efficiency. These projects should be suitable for future replication, transfer or mainstreaming both across Europe and globally.

Eligible projects include pilot and demonstration projects that contribute to one of the EU LIFE Program's two sub-programs: Environment and Climate Action. Within each of these sub-programs, a traditional project can focus on one of three priority areas:

Environment

— Environment and resource efficiency
— Nature and biodiversity
— Environmental governance and information

Climate action

— Climate change mitigation
— Climate change adaptation
— Climate governance and information

Full applications under the 2016 Call are due on September 7th, 12th, or 15th 2016, depending on priority area. The evaluation and revision of the proposals will be completed during September 2016 through May 2017, resulting in the earliest possible project start date in July 2017.

Awards will be made on a competitive basis. Collaborations or consortia are not required, but the Commission may add additional points during the review process. EU LIFE Program will also be promoting close-to-market projects that allow for industrialization and commercialization to start during the project duration.

Ernst & Young LLP insights

Companies with R&D or manufacturing operations in the European Union should consider whether they have any innovative sustainability related projects planned for 2017 and beyond. These projects can either be focused on improving the energy, water or resource efficiency of their own manufacturing processes, or on innovating and improving the environmental benefits of their products and services. To the extent that companies are considering sustainability projects, funding through the EU LIFE Program may help reduce the cost of piloting and demonstrating these projects.

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