Scaling Impact through Cascade Funding: Policy Recommendations for Future EU Programmes

Cascade Funding — or Financial Support to Third Parties (FSTP) — enables EUfunded projects to distribute small grants through open calls, widening participation beyond traditional consortia and lowering access barriers for smaller actors. Within Horizon Europe Cluster 6, it plays an important role in connecting EU priorities with local innovation ecosystems, particularly in areas such as biodiversity, climate change, and sustainability. The TETTRIs project, which distributed €1.8 million to 36 beneficiaries across 11 countries, demonstrates the mechanism’s potential to engage underrepresented stakeholders and support grassroots innovation. However, challenges remain, including limited visibility of calls, lack of harmonised guidance, and administrative burden on coordinators. To maximise impact, future EU programmes should improve implementation frameworks, strengthen support systems, and explore more continuous, organisation-based approaches. Refining Cascade Funding will help ensure that EU research and innovation funding reaches a broader and more diverse community, enhancing its contribution to environmental and societal goals.