Horizon Adaptation Mission: Blended Financing

Running a cascade fund inside a single €20M Coordination and Support Action: at least 70% of the EU contribution has to go out as financial support to third parties (FSTP) — subgrants of up to €800,000 each — to project promoters who pair the subgrant with an EIB-intermediated bank loan, arranged through a National Promotional Bank or other bank, to implement a real local climate-adaptation action (nature-based solutions preferred where feasible). Each local action has to cost €500,000–€10 million in total, with the subgrant covering at most 70% of that cost, and the first subgrant call has to launch within the project's first 10 months. Alongside running the cascade, the project analyses past experience blending grants and bank loans for adaptation, produces recommendations and open case studies, and coordinates with National Promotional Banks, other banks, the EIB, CINEA and the Commission's Adaptation Mission Secretariat.