Novel circular business models to enable the just transition to a sustainable and circular economy
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See in 5 min if you're eligible for Novel circular business models to enable the just transition to a sustainable and circular economy offering max €30.0M funding💰 Funding Details
HORIZON-CL6-2025-01-CIRCBIO-01
Novel circular business models to enable the just transition to a sustainable and circular economy
Type of Action: HORIZON-IA (Innovation Action)
Maximum EU Contribution per Project: *up to €30 million*
Opening Date: 6 May 2025
Deadline: 17 September 2025 – 17:00 (Brussels)
1. Purpose of the Call
The call finances large-scale demonstrations of innovative, socially fair circular business models that:
* extend product life (re-use, repair, refurbish, remanufacture, repurpose, upgrade)
* implement *product-as-a-service* or sharing schemes
* actively engage consumers and social-economy actors
* provide quantified evidence of reduced resource use, GHG emissions and biodiversity pressure
2. Policy Anchoring
Funded projects must create tangible progress for:
* European Green Deal & 2020 Circular Economy Action Plan
* Ecodesign for Sustainable Products Regulation (ESPR)
* Waste Framework Directive & Environmental Footprint methods
* EU Social Economy Action Plan & New European Bauhaus
3. Expected Impacts
1. Consumers: Access to new circular services that lower their environmental footprint.
2. Industry & SMEs: Proven, scalable blueprints for circular models and governance.
3. Labour Market: (Re-)skilling pathways and quality jobs in repair, refurbishment and service provision.
4. Eligible Activities
* Large-scale pilots in real market conditions across multiple value-chain actors.
* Social innovation, behavioural economics and SSH integration.
* Lifecycle, socio-economic and territorial impact assessments (including monetisation).
* Business, financing and governance models that ensure fair & affordable pricing.
* Clustering with Circular Cities & Regions Initiative (CCRI) and LIFE projects.
5. Consortium Requirements
A typical winning consortium combines:
* Technology providers & manufacturers
* Social-economy and civil-society organisations
* Retailers / brands with customer interface
* Local authorities & financiers
* SSH experts, LCA practitioners and digital enablers
* Minimum three legal entities from three different your country (EU or associated) states
6. Funding Rate & Cost Categories
* Funding rate: 70 % of eligible direct costs (100 % for non-profit entities)
* Indirect costs: 25 % flat-rate of eligible direct costs
* All Horizon Europe cost categories (personnel, subcontracting, equipment, other goods & services, in-kind contributions, etc.) are eligible if linked to the action and incurred during the project period.
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📊 At a Glance
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🇪🇺 Strategic Advantages
EU-Wide Advantages & Opportunities for HORIZON-CL6-2025-01-CIRCBIO-01
1. Direct Alignment with Flagship EU Agendas
• European Green Deal & Circular Economy Action Plan – Proposals that demonstrably reduce material use, CO₂ and biodiversity pressure speak to headline targets (–55 % GHG by 2030, climate neutrality by 2050).
• Ecodesign for Sustainable Products Regulation (ESPR) – Large-scale pilots prepare industry for the upcoming mandatory durability/reparability requirements, offering a first-mover edge before transposition into national law.
• Social Economy Action Plan & Just Transition – The call explicitly invites social-economy entities, making projects eligible for complementary social-innovation funding streams (ESF+, REACT-EU, Just Transition Fund).
2. Single Market Access: 450 + Million Consumers
• Developing product-as-a-service models or pan-EU repair/upgrade networks inside a harmonised market slashes transaction costs versus 27 fragmented schemes.
• EU-wide eco-labelling & digital product passports (under ESPR) provide a single trust signal for all member states—lowering marketing spend and accelerating consumer uptake.
3. Cross-Border Collaboration & Knowledge Exchange
• Horizon IA consortia must include ≥3 legal entities from ≥3 Member/Associated States; this built-in multinationality ensures access to diverse waste streams, consumer segments and regulatory contexts for robust business-model stress-testing.
• Use EIT Circular Economy KIC, Enterprise Europe Network, CCRI & New European Bauhaus platforms for pilot‐site matchmaking and to disseminate blueprints to municipalities.
• Access to EU-level living labs (e.g., Circular Economy Living Lab NL, GreenTech Valley AT) shortens prototyping cycles.
4. Regulatory Harmonisation Advantages
• Waste Framework & ESPR create common definitions for ‘pre-paring for reuse’, ‘remanufacture’, etc., allowing consortium partners to design logistics and digital platforms once and deploy in all countries.
• Data generated under the Environmental Footprint methods will be recognised by national authorities, smoothing eco-claim verification and market approval.
5. Plug-in to Europe’s Innovation Ecosystem
• Synergies with CBE Joint Undertaking, Cluster 4 & 5 partnerships, LIFE SAP-ENV, Digital Europe Programme (data spaces, blockchain traceability) multiply R&I intensity without duplicating TRL work.
• Access to world-leading research infrastructures (e.g., JRC’s Circular Economy Accelerator, Fraunhofer‐IPI circularity labs, VTT bio-product pilots) lowers cap-ex needs.
• Europe hosts >3,000 repair cafés, 150+ industrial symbiosis networks and numerous FabLabs—ready-made demonstrators for citizen co-creation and SSH engagement.
6. Funding & Investment Leverage
• Cascade finance: Combine 60–70 % Horizon funding with national recovery & resilience plans (RRF), cohesion funds or EIB/InvestEU green-transition windows.
• EU taxonomy alignment boosts attractiveness for private ESG investors; Impact data produced in the project fulfils disclosure needs (SFDR, CSRD), unlocking blended finance.
• Projects can prepare for Innovation Fund or EIC Scale-Up follow-on calls, accelerating commercial deployment.
7. Pan-European Scale & Impact Potential
• Harmonised digital product passports enable cross-border secondary-material markets, powering economies of scale in refurbishment/remanufacturing.
• Workforce up-/re-skilling blueprints can be replicated in Erasmus+ Centres of Vocational Excellence, spreading job creation beyond pilot regions.
• Policy evidence feeds directly into EU standardisation bodies (CEN/CENELEC), influencing upcoming EN technical standards and embedding project results into law.
8. Actionable Opportunities for Applicants
1. Build a supply–demand testbed spanning at least three diverse regions (e.g., Nordic high-tech refurb, Central-European manufacturing hub, Mediterranean social-economy cluster) to prove transferability.
2. Integrate Digital Europe assets (common data spaces, AI sandbox) for traceability & LCA automation; this raises TRL and satisfies the call’s ‘quantify & monetise impact’ request.
3. Co-design consumer incentives with EU-level NGOs (BEUC, ECOS) to access pan-EU behavioural datasets and meet SSH requirements.
4. Engage regional authorities via CCRI to pre-secure regulatory sandboxes and post-project procurement (Green Public Procurement thresholds under ESPR).
5. Plan clustering activities with LIFE-2024-SAP-ENV winners to avoid overlap and share dissemination costs—eligibility & excellence scores benefit from demonstrated synergy.
6. Map skills gaps against ESCO & Pact for Skills to influence EU-wide curricula and obtain additional Erasmus+ pilot funding.
9. Unique EU-Scale Value-Add versus National Projects
• Only an EU consortium can capture transboundary material flows critical for circular loops (e.g., e-waste shipped from DE to PL refurbishers).
• EU legislation is often directly applicable; piloting under Horizon therefore provides a regulatory fast-track unmatched by national schemes that must await transposition.
• Horizon projects enjoy free IP protection services (Horizon IP Helpdesk) and open science dissemination channels that amplify reach to 1000+ EU municipalities.
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Bottom line: Leveraging the Horizon IA framework enables applicants to prototype, validate and scale novel circular business models across the Single Market, de-risking investment, shaping forthcoming EU standards and unlocking multi-source funding—advantages that are unattainable in purely national projects.
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