The diagram below indicates the maximum proportion of funding available from the Carbon Trust; should your initial application be successful, you will be able to discuss the funding options further with the Carbon Trust prior to submitting your full proposal.
Where the project is collaborative and involves more than one beneficiary, the intensity of aid must also be established for each individual beneficiary. Base-line maximum aid intensities for companies, as a proportion of the project costs borne by that company are as follows:
- 50% for companies carrying out industrial research
- 25% for companies carrying out experimental development
The following uplifts to these base-line maxima may be applied as long as the overall aid intensity for the project remains lower than the maxima laid out in the table above:
- 20% for small companies
- 10% for medium-sized companies [EU definitions of SEs and MEs below]
- A further 15% (up to a maximum of 80%) for any type of company if the collaboration meets one of the following criteria:
a. the project involves companies in two or more EU countries OR at least one SME, AND no single collaborator bears more than 70% of the project costs.
OR
b. the project involves collaboration between companies and one or more research organisations (such as universities) where the research organisation bears at least 10% of the eligible project costs and has the right to publish the results of research projects that stem from research implemented by that organisation.
OR
c. in the case that the company's contribution to the project qualifies as industrial research, the results of the project are widely disseminated through technical or scientific conferences, published in scientific or technical journals, open access databases or through free or open source software. ^ Back to top
Funding Intensity
- There is no automatic entitlement to the maximum funding level for which you may be eligible; preference will be given to applicants who ask for the minimum required to make their project viable. Funding is dependent on:The type of organisation or collaboration undertaking the project: public or private
- How close the project is to commercial viability
- The percentage of the total project funded by other public bodies
Experience suggests that projects with a total value of less than £50,000 are unlikely to be cost effective, and are not likely to yield material impacts on the commercialisation of the technology involved.
Collaborative projects involving technology providers and exploiters (end-users) are particularly encouraged where this is likely to lead to the more effective commercialisation of the technology.
The Carbon Trust also requires:
- That your project demonstrates value for money
- That you meet the objectives outlined in the project plan
- That you have leveraged a high proportion of non-Carbon Trust funds. There is an expectation that those who stand to directly benefit from the work will contribute, in part, to the cost of undertaking it.
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Project costs that are eligible for match funding:
- Personnel costs: researchers, technicians and other supporting staff employed to the extent and for the period on the research activity
- Instruments, equipment, land and premises used to the extent and for the period (except where transferred commercially) used for research activity
- Services: cost of consultancy and equivalent services used exclusively for the research activity, including the research, technical knowledge and patents, etc. bought from outside sources at market prices, where the transaction has been carried out at arm’s length and there is no element of collusion involved.
- Additional overheads incurred directly as a result of the research activity
- Other operating expenses: materials, supplies and similar products incurred directly as a result of the research activity
- Patenting costs - For SMEs only, costs involved in obtaining and validating patents and other intellectual property rights may be aided to the same intensity as other eligible costs. This is specific to obtaining and validating patents and does not allow funding for maintenance of existing intellectual property.
The cost of generating the information required for the application of a patent is an eligible cost where the IP is developed as part of the project.
Obtaining licenses to use relevant background IP for the project is an eligible cost.
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Project costs that are not eligible for support:
- Profit
- Bonuses
- Interest payments of any kind
- Dividend payments
- Loss of salaries, revenue or consultancy income
- Production and sales costs
- Recoverable VAT
- Direct sales and marketing costs.
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The funding made available under this scheme has been cleared as compatible with the common market under this EU framework. All grant funding awarded to Private Sector organisations must be compliant with this EU framework. Applications that do not comply with this framework cannot be funded. More information on state aid can be found here.
This framework was replaced from 1 January 2007 by the EU Framework for State Aid for Research & Development & Innovation (2006/C323/01). The EC's clearance of this scheme was conditional, in particular, on amendments being made to the scheme to take into account the provisions of the new framework including ceasing regional bonuses (which are not available under the new framework). Applicants are also referred to the new framework, and applications should also comply with this. ^ Back to top
Non-Compliance of EU State Aid Legislation
It is the responsibility of the recipient to ensure that the application for funding is compliant; in the event of non-compliance the European Commission could demand that the recipient repay the grant in full with interest:
Satisfy yourselves that your application is compliant
Seek qualified professional advice if unsure (the Carbon Trust does not supply legal advice)
The Carbon Trust endeavours to check all applications for compliance but it does not accept liability for any breach
The Carbon Trust is funded by the Department for Environment, Food and Rural Affairs, the Department for Business, Enterprise and Regulatory Reform, Scottish Executive, the Welsh Assembly Government and Invest Northern Ireland.
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