Y.Sustainable | Financing the Climate Transition in SMEs

The climate transition has ceased to be a trend and has become a concrete and transversal requirement for global economic activity. At the centre of this transformation is the urgency to decarbonise processes, adopt more efficient technologies, and ensure the environmental sustainability of business models. For companies, this new paradigm represents, simultaneously, a responsibility and an unprecedented opportunity.

However, the complexity associated with corporate sustainability — whether from a technical, fiscal, or strategic point of view — demands in-depth knowledge, an integrated vision, and informed decision-making. A superficial or disjointed approach to this transition could seriously compromise the viability of many businesses in the medium term. It is no longer enough to just do "something". It is necessary to do it well, with ambition and rigour.

It is in this demanding context that Yunit Consulting assumes its role. With a consolidated track record in strategic, fiscal, and financial advice for national companies, we have been supporting climate transition projects based on innovation, efficiency, and sustainable growth. We know the challenges and the opportunities — and we know how to turn intention into true transformation.

In this article, we outline a complete and updated guide on how to align business objectives with climate goals, taking advantage of the instruments available in Portugal, from tax benefits such as SIFIDE and RFAI, to the incentive systems of Portugal 2030. This is a contribution for all those who identify sustainability as a competitive opportunity and want to move forward with security and concrete results.

Main challenges of the Climate Transition for companies

Adapting to the climate transition represents, for many companies, a complex and multifaceted process. Among the main challenges, the following stand out:

1. Adaptation to regulatory requirements: European and national legislation has been imposing various obligations and practices in the area of Sustainability, which implies that SMEs must know and adapt to these new requirements;
2. High investment costs: the path to climate transition often implies replacing equipment, reconverting facilities, acquiring green technologies, and training human resources. These costs can be an obstacle, especially for SMEs with lower self-financing capacity.
3. Organisational and cultural change: the climate transition requires an internal transformation that goes beyond technology. It involves creating a corporate culture oriented towards sustainability, developing skills, and aligning leadership with new strategic objectives.
4. Lack of knowledge about support mechanisms: although there are multiple financing lines and tax incentives available, many companies are unaware of their existence, applicability, or how to access them, ending up not benefiting from the support that could facilitate their climate transition.

Climate Transition and opportunities for companies

The Climate Transition cannot be viewed merely as a challenge. On the contrary, it must be seen as a strategic opportunity for repositioning and competitive differentiation. Among the potential benefits of the Climate Transition, we highlight:

1. Operational efficiency: betting on low energy consumption technologies, reuse of materials, and optimised processes allows for significant cost reduction in the medium and long term.
2. Access to new markets and clients: increasingly, consumers, investors, and business partners value companies with sustainable practices, these being a decisive and determining factor in accessing large tenders and international contracts, for example;
3. Innovation and differentiation: betting on more sustainable solutions tends to boost innovation in products, processes, and business models, allowing for the diversification of the offer and entry into market segments with high growth potential.
4. Access to financing and tax incentives: programmes such as Portugal 2030, SIFIDE, or RFAI grant financial support and tax benefits, which alleviate the tax burden on companies and make the necessary investment viable for companies aligned with these practices.
5. Reputation and brand valuation: companies that lead by example in the area of sustainability reinforce their image with the public, attract talent, and retain customers;
6. Adaptation to climate change: companies adapted to increasingly frequent weather events are companies prepared for scenarios that directly influence their business, thus reducing the physical and financial risks associated with these events.

The role of R&D in supporting the Climate Transition

The path of sustainability and Climate Transition is closely linked to betting on new technologies and skills, with clean technologies, improvement of energy efficiency, or resource training. However, many companies still do not find an answer in the market for their needs, forcing them to bet on research and development (R&D) to create their own solutions in this area.

Research & Development is thus one of the fundamental axes to respond to the challenges of the Climate Transition. By investing in R&D, companies can:

1. Create more ecologically responsible products: substituting raw materials, optimising packaging, privileging local suppliers and responsible value chains, among others.
2. Develop more efficient production processes: innovating in production methods can reduce energy consumption, minimise waste, and eliminate stages with high environmental impact.
3. Automate and digitise control systems: software and monitoring technologies allow real-time management of energy consumption and emissions, facilitating decision-making and continuous adaptation.
4. Transform challenges into business opportunities: often, an internal need leads to the creation of a new product or service with market value, becoming a business opportunity that can lead to the diversification of the company's revenue sources.

How to use SIFIDE to support companies' Climate Transition

The Tax Incentive System for Corporate Research and Development (SIFIDE) can be an opportunity to support the Climate Transition of companies, as it allows obtaining a significant return in tax benefit from the expenditure incurred by these projects, provided they involve R&D activities and expenses.

As defined in Directive 2009/125/EC of the European Parliament and of the Council of 21 October, ecodesign activities covered by SIFIDE are those that integrate environmental aspects into the design of a product, with the aim of improving its environmental performance throughout its entire life cycle.

Thus, in the context of the Climate Transition, SIFIDE can be associated with expenses such as:

• Ecodesign projects, which improve the environmental performance of products, presenting expenses with human resources, operation, participation, and contracting of R&D activities, as well as the registration, maintenance, and acquisition of patents;
• Technological improvements of industrial processes, leading to decarbonisation and energy efficiency in industry. 
• Development of materials with a lower carbon footprint;
• Digital solutions and intelligent environmental management systems, which promote energy efficiency.

Briefly, SIFIDE is calculated based on two rates: a base rate, corresponding to 32.5% of R&D expenses related to the tax year in question; to which an incremental rate is added, corresponding to 50% of the increase in these expenses compared to the average of the previous two years, up to a limit of 1.5 million euros. This means the tax incentive rate on R&D expenditure varies between 32.5% and 82.5%.

Using SIFIDE to support ongoing projects in companies will allow them to reinvest in R&D, reinforce their budget in these projects, relieving financial effort and thus accelerating their strategy towards the much-desired Climate Transition.

Financial support for the Climate Transition in Portugal

Besides SIFIDE, there are several support lines under the Portugal 2030 framework specially oriented towards the Climate Transition:

• SITCE – Incentive System for Climate and Energy Transition: supports investments in industrial decarbonisation, replacement of obsolete equipment with efficient solutions, adoption of renewable energies, and the reconversion of manufacturing units dependent on fossil fuels into units using clean energy sources. 
• Business R&D: finances research and development projects with practical application potential that respond to companies' internal challenges. These projects can become new business areas, contributing to the company's diversification and positioning. 
• Productive Innovation: supports the growth of installed capacity and the modernisation of productive infrastructures, with the possibility of financing for more efficient equipment and more sustainable technologies.

It may be of interest to you: Explore the most relevant incentives for your company here!

Steps to implement the Climate Transition in your company

1. Conduct an energy and environmental diagnosis: identify main consumptions, emission sources, environmental impacts, and potential areas for improvement. This is the starting point for any successful strategy.
2. Establish clear and quantifiable goals: define specific objectives for emissions reduction, water efficiency, waste valorisation, or others that apply. These objectives must be aligned with the SDGs and targets defined in European and national legislation.
3. Design a structured investment plan: consider the decisions and solutions that best suit your company's profile, and evaluate the necessary investment, as well as its environmental and financial return.
4. Map available incentives: identify the tax and financial supports applicable to your project. The integration between SIFIDE, RFAI, SITCE, and Productive Innovation can make the difference between a viable or unviable project.
5. Choose a specialised partner: correct framing and management of applications require technical knowledge, experience, and continuous monitoring, not only for approval but also for execution.
6. Monitor and report results: track performance indicators and share progress with stakeholders. Transparency is increasingly valued in the market.

Specialised monitoring: the role of Yunit Consulting

At Yunit Consulting, we support companies in transforming the Climate Transition into a growth opportunity. We do this through an integrated approach, which combines:

• Strategic assessment of the company's Climate Transition plan;
• Technical and fiscal framing of projects in the various available incentive systems;
• Preparation and submission of applications focused on maximising return;
• Monitoring and tracking execution, ensuring compliance and tangible results.

If your company wants to bet on the climate transition, schedule a free framing session. Discover how knowledge, experience, and rigour can make the Climate Transition a competitive advantage for your business!

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Last update: 03 April 2025