Climate Innovation Fund: additional guidance

Applicants can start procurement before they receive a funding decision. They do so at their own risk.

Costs incurred before a project is approved are not eligible for funding. Procurement documents must make clear that funding has not yet been confirmed.

Where organisations are confident in their proposed approach, early market engagement or preparing for procurement early may reduce the time needed to begin the project after a grant award.

Before starting procurement, applicants should consider the risks of proceeding before the outcome of the assessment process is known, including the possibility that:

• they may not receive funding
• the scope of their project may change

Local authorities are not currently eligible to apply as the lead applicant.

They are encouraged to take part as project partners or collaborators in an application led by an eligible lead applicant.

Local authorities with project ideas are strongly encouraged to discuss potential partnerships with an eligible lead applicant.

For details of eligible lead applicants, refer to the main guidance document.

Applicants are welcome to discuss project concepts, themes and approaches with the Welsh Government Energy Service before submitting an application.

These discussions provide general guidance and clarification.

To ensure a fair and transparent process, draft applications should not be shared for review and bespoke feedback on application content will not be provided.

Organisations, experts and specialist suppliers do not need to be based in Wales.

Applicants may work with organisations from outside Wales where this helps secure the knowledge, expertise or capability required to deliver the project successfully.

Projects may include demonstrators, pilots and practical trials where these support the project objectives and generate meaningful evidence or learning.

A project may focus on a single demonstrator site. Applicants should explain how learning could be replicated, scaled or applied more widely where appropriate.

Demonstrator activities do not necessarily need to be linked to every finding from an earlier study phase, provided there is a clear rationale for their inclusion.

Applicants are encouraged to engage early with suppliers, manufacturers, technology providers and delivery partners.

Early engagement can help inform costs, delivery options, technical feasibility, market readiness and procurement approaches, helping applicants develop more robust proposals.

Match funding is not a requirement of the programme.

Applicants may highlight financial, in-kind or organisational contributions where these strengthen the proposal and demonstrate wider commitment to the project.

Innovation often involves uncertainty.

Projects may test innovative technologies, approaches and delivery models where risks are clearly identified and appropriate learning outcomes are defined.

Projects may also explore barriers to implementation, including operational requirements, procurement approaches, infrastructure needs, ownership arrangements, insurance considerations and regulatory requirements.

Not all innovation projects will produce the expected results. Applicants should explain how learning generated through the project will inform future decision-making regardless of the outcome.

Projects should demonstrate clearly what will be delivered within the DATGLOI funding period.

Applicants may identify future phases, implementation activity, additional trials, investment opportunities or follow-on work beyond the initial funded project.

Projects may also generate the evidence, partnerships, technical understanding or business cases required to support future funding opportunities, investment decisions or wider implementation.

Applications should explain how the proposed work will reduce uncertainty, generate practical evidence and support future delivery decisions.