Australia secures association to Horizon Europe Pillar II

Australia’s entry into the European Union’s €93.5 billion (approximately US$108 billion) Horizon Europe programme from 2027 is set to give its researchers full access to one of the world’s most powerful collaborative funding systems and, crucially, the ability not just to join projects but to lead them.

The agreement, formally concluded between Australia and the European Commission this week, grants association to Pillar II of Horizon Europe – the programme’s largest collaborative pillar, focused on global challenges spanning climate, health, advanced manufacturing and digital technologies.

Prime Minister Anthony Albanese framed the move as central to Australia’s economic future, saying it would open “a new horizon for Australian research and innovation” and help ensure the country is positioned to shape the industries of the future.

“This is about making sure Australia is at the table – shaping the technologies, industries and jobs of the future,” he said.

Minister for Industry and Innovation and Minister for Science Tim Ayres described the agreement as a major step in embedding Australia within global research systems.

“Horizon Europe is the world’s largest research collaboration programme,” Ayres said. “This agreement will give Australian researchers and businesses access to collaborate with the best in the world to solve shared challenges.”

A structural shift for funding

For Australian universities, the shift is structural. From 2027, researchers will move from “third-country” participation – often requiring institutions to self-fund – to eligibility for European Union funding under Pillar II, including the ability to help lead multinational research consortia.

The scale of the opportunity is significant. Horizon Europe, with a budget of €93.5 billion over seven years, is the world’s largest multilateral research programme, designed to fund large, mission-driven projects beyond the capacity of national systems alone.

Australian organisations have already participated in more than 200 Horizon Europe projects, with a success rate of roughly 25% – a strong performance despite previously limited access to funding. Sector bodies say full association will convert that track record into deeper influence, enabling Australian researchers to help shape research agendas rather than simply contribute to them.

The Australian Academy of Science described the deal as a “once-in-a-generation” opportunity to integrate Australian science more deeply into global research systems, noting that access to Horizon Europe’s scale, infrastructure and networks would accelerate discovery and translation in ways not possible through domestic funding alone. It also emphasised the importance of international collaboration in tackling borderless challenges such as climate change, pandemics and technological disruption.

The agreement has been strongly backed by the Australian government as part of a broader push to strengthen national research capability and international engagement. Ayres has argued that deeper collaboration with Europe will help Australia build capability in priority areas including clean energy, critical minerals, artificial intelligence and advanced manufacturing.

‘Major win’ for research and innovation

Speaking to University World News, Universities Australia chief executive Luke Sheehy described the agreement as “a major win for Australian research, innovation and economic growth”.

“If Australia is serious about lifting productivity, building sovereign capability and competing in the industries of the future, this is the table we need to be sitting at.” He said that association with Horizon Europe opens the door for researchers at universities right across Australia.

“That means more opportunities to attract investment, commercialise ideas, build partnerships and turn Australian research into real-world outcomes. From clean energy and critical minerals to advanced manufacturing, health, digital technologies and artificial intelligence, Horizon Europe will connect Australian researchers to some of the biggest and most important research projects in the world,” he said.

Vicki Thomson, chief executive of the Group of Eight, said joining Horizon Europe is about far more than access to funding.

“It’s about strategic alignment, capability and Australia’s long-term national interest,” she said. “It sends a signal internationally that Australia sees research and innovation as a strategic national asset and that we are prepared to engage at the highest level.”

She added that full association would unlock access to data, infrastructure and global research networks that are otherwise difficult to reach. “We are already seeing what this looks like in practice through limited participation… Full association allows us to do that at a much larger scale: to lead flagship international collaborations, shape research agendas, and deliver solutions to shared global challenges.”

At the institutional level, universities are already positioning themselves to take advantage of the opportunity.

Professor Mark Cassidy, deputy vice-chancellor (research) at the University of Melbourne, said the Group of Eight had advocated for more than a decade for Australia’s association with Horizon Europe.

“We are delighted with the successful negotiations,” he told University World News, describing the programme as a “key opportunity” for the university’s international research strategy.

Cassidy said access to Horizon Europe would enable Australian researchers to deepen global partnerships and tap into major collaborative funding streams.

“The thematic research clusters in Horizon Europe Pillar II align closely with Australia’s national science and research priorities, as well as our own emerging impact-focused initiatives,” he said.

He added that Australian institutions are well placed to lead international consortia, drawing on established collaborations with European partners and industry.

However, Cassidy cautioned that readiness would be critical to success.

“There is a need for a rapid uplift in awareness of the programme’s complex administrative and regulatory requirements,” he said, noting that universities are working collectively to build capability.

He also pointed to the importance of national coordination, including the establishment of designated contact points to support researchers navigating the system.

Diversifying beyond traditional partners

The move comes amid a broader recalibration of Australia’s global research partnerships, as policymakers seek to diversify beyond traditional reliance on the United States and United Kingdom. The European Union is already one of Australia’s largest economic partners, with two-way trade exceeding A$100 billion annually, providing a strong foundation for expanded research collaboration.

For universities facing ongoing funding pressures, Horizon Europe offers access to large-scale collaborative funding streams that are difficult to replicate domestically. The programme aligns closely with Australia’s national priorities, including energy transition, health systems, digital transformation and advanced industry.

However, competition will be intense.

There are also questions about institutional readiness. While association removes formal barriers, success will depend on the ability of Australian universities to engage in complex, multi-country bids and sustain long-term collaborations.

The agreement is expected to take effect from 2027, with a transition period as institutions prepare bids and deepen partnerships with European counterparts.

What distinguishes the shift is not simply access to funding but access to scale and to the global networks that increasingly shape research agendas.

Access alone will not guarantee success. But in an increasingly competitive global research system, absence is no longer a viable option.