Europe’s climate ambitions are running up against a growing reality: the continent is not fully prepared for the impacts of climate change already underway. Last week, independent EU advisers warned that rising floods, wildfires and heatwaves are exposing gaps in coordination, funding and long-term planning.
At the same time, a shift is taking place across Europe’s industrial base. Companies in the sector are increasingly choosing to build and scale climate technologies within the region.
We sat down with Angela Ivanova, Co-founder and CEO of LAM’ON and EIC ambassador, to discuss what is already making Europe a competitive centre for the next wave of clean innovation.
Europe’s climate tech momentum
Ivanova describes a shift in corporate growth strategies. “Over the past five to seven years, more companies have focused on staying in Europe rather than looking to Silicon Valley, which was the dominant narrative before.”
Geopolitics, supply-chain resilience, and sustainability targets are reshaping industrial strategy. “The geopolitical situation is influencing these decisions and encouraging companies to manufacture and establish production facilities here in Europe,” she notes.
The trend is particularly visible in sectors producing physical goods, the backbone of climate tech. “I’ve been speaking with many companies that are now establishing factories and production facilities for physical products. This aligns with the EU narrative, but I’m saying it because I truly see it happening.”
For countries like Bulgaria, deeper integration is expected to reinforce this trajectory. “For us in Bulgaria, joining the Eurozone will strengthen this trend even further,” Ivanova says.
Sustainability as Europe’s competitive advantage
While Europe’s regulatory push on sustainability often draws criticism, Ivanova sees it in a different way. “Sustainability-wise, Europe is currently the best market, even though there are still gray areas in the bioeconomy and emerging regulations.”
She contrasts this with recent developments in the United States. “Many companies in the U.S. paused their sustainability efforts due to recent disruptions, while in the EU we’ve seen companies step up and position themselves as leaders in sustainable business.”
Indeed, under President Donald Trump, the U.S. Securities and Exchange Commission (SEC) has shifted its approach to corporate disclosures, moving away from climate and ESG reporting requirements and refocusing on strictly financial, or “pecuniary,” information.
In March 2025, the SEC voted to stop defending climate disclosure rules adopted under the Biden administration.
On the other hand, for climate tech founders, she argues, policy consistency in the EU would create the confidence needed to invest and scale.
Policy, lobbying and competing interests
Ivanova says that from within Europe’s innovation ecosystem she sees both progress and some imbalance. While the policy foundation for the green transition is in place, lobbying and competing interests still influence outcomes.
“The foundation is there, but there is still a long way to go. The Commission is trying to balance business, environmental, and social interests — but I don’t believe they’ve found the right balance yet.”
Sustainable development has been an overarching EU objective since 1997, requiring environmental policy to consider social and economic impacts. Balancing these three pillars is not optional; it is built into EU governance. Angela adds that greater coordination across member states could help Europe make the most of the opportunities already taking place.
“With directives and legislation, decisions must be clear. Right now, they can feel either unbalanced for real business conditions or too corporate-friendly.”
Last December, the European Union agreed to scale back its corporate sustainability rules after months of pressure from businesses and several governments. The changes were made to ease requirements for many companies, following industry criticism that complex regulations were undermining competitiveness.
Building climate innovation from Bulgaria
Rather than relocating to a larger hub, Ivanova chose to build LAM’ON in Bulgaria, together with her co-founders . “As a smaller player in Bulgaria, there is more attention to detail — how you establish your business, how you operate, and how you present yourself on the market.”
This environment, she says, fosters discipline which could be a critical asset in manufacturing and climate tech.
LAM’ON targets a persistent barrier in circular packaging systems. “Plastic has been a major polluter for a long time, and there were almost no production facilities for sustainable plastics in Europe. Now we see new facilities emerging, which confirms there is a market.”
The company’s innovation addresses a hidden obstacle. “We identified a niche in laminating film for paper and cardboard, which prevents recycling. Our innovation allows these materials to remain recyclable.”
The company’s innovation targets a largely overlooked barrier in the recycling chain. Laminating films used on paper and cardboard, common in packaging, typically render these materials non-recyclable. LAM’ON aims to address this issue by alternative that preserves recyclability.
The investment gap in climate hardware
Despite Europe’s climate ambitions, funding gaps persist, particularly for hardware innovation. For example, hardtech climate startups need $30–50M+ rounds to scale manufacturing, which few European funds can lead.
“Private investment is still lacking, especially for high-risk businesses and companies developing physical products,” Ivanova shares.
Back in 2020, LAM’ON secured early support with a €15,000 EIT Climate-KIC grant, enabling the development of its first lab and semi-industrial laminating film prototypes. It later received €30,000 from Chivas Venture and a €150,000 investment from Bulgarian angel investors Sasha Bezuhanova and Svetozar Georgiev. Building on this backing, the company won a €1.2 million EIC grant for a €1.6 million development project, allowing it to establish a production facility in Sofia.
European Innovation Council funding marked a turning point for LAM’ON, Angela explains. “The investment changed our strategy significantly. With a factory and machinery in place, we knew we had to scale quickly and manage the funding responsibly.”
Unlike venture capital, she notes, public funding enables long-term value creation. “Venture capital focuses on fast ROI, while EIC funding supports long-term impact and large-scale value for the EU.”
Scaling to meet demand
LAM’ON is entering a phase of expansion, driven by demand for sustainable packaging. “We are focused on fast growth this year. Competitors are emerging, which confirms strong market demand.”
The company is expanding across Europe, with existing sales in Italy, the UK, and Austria, and plans to grow further. Their key objective is vertical integration, as LAM’ON aims to control the entire production process, from extrusion to final products like mailer bags.
While Europe remains the priority, global markets are presenting growing demand. “We are exploring the MENA region, which shows strong interest in green innovation, as well as the United States and Canada.”
“In the future, we prefer local manufacturing partnerships rather than exporting from Europe, to reduce emissions and scale sustainably.”
