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Novel circular business models to enable the just transition to a sustainable and circular economy

Last Updated: 8/19/2025Deadline: 16 September 2025€30.0M Available

Quick Facts

Programme:Horizon Europe
Call ID:HORIZON-CL6-2025-01-CIRCBIO-01
Deadline:16 September 2025
Max funding:€30.0M
Status:
open
Time left:5 weeks

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💰 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

€30.0M
Max funding
16 September 2025
Deadline
5 weeks
Time remaining
Eligible Countries
EU Member States, Associated Countries

🇪🇺 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.

🏷️ Keywords

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