Open Topic: Innovative solutions for the sustainable and circular transformation of SMEs
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See in 5 min if you're eligible for Open Topic: Innovative solutions for the sustainable and circular transformation of SMEs offering max €14.0M funding💰 Funding Details
Funding Overview – HORIZON-CL6-2025-01-CIRCBIO-01-two-stage
Key Facts
- Action Type: HORIZON-IA – Innovation Action
- Maximum EU Contribution per Project: €14 000 000 (budget-based grant)
- Submission Model: Two-stage (blind Stage 1 ➜ invited Stage 2)
- Opening Date: 06 May 2025
- Stage 1 Deadline: 04 September 2025, 17:00 Brussels time
- Stage 2 Deadline: 18 February 2026, 17:00 Brussels time
Policy Context
This topic directly supports the EU Green Deal, Circular Economy Action Plan, Zero-Pollution Action Plan, EU Industrial Strategy and the climate-neutrality target for 2050. Proposals must demonstrate how they enable SME adoption of:
- Ecodesign for Sustainable Products Regulation (ESPR)
- Corporate Sustainability Reporting Directive (CSRD)
- EU Taxonomy & Green Claims Directive
- Digital Product Passports and other data-driven compliance tools
Eligible Activities
The grant will fund large-scale demonstrations of innovative, disruptive and sustainable products, processes, services or governance models that accelerate SMEs’ circular and bio-based transformation. Typical cost categories include:
1. Personnel & Skills Development (up-/re-skilling, training)
2. Equipment & Pilot Lines needed for demonstration in operational environments
3. Subcontracting for specialised LCA, digital twin, or AI support
4. Travel & Networking with the Enterprise Europe Network, INCITE, EU Pact for Skills, etc.
5. Dissemination & Exploitation (including policy recommendation drafting)
6. Indirect Costs (25 % flat-rate of eligible direct costs)
> Tip: Consortiums must include SMEs or SME associations as beneficiaries; engaging NGOs and industry bodies strengthens impact and dissemination across your country and the wider EU.
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🇪🇺 Strategic Advantages
EU-Wide Advantages & Opportunities for HORIZON-CL6-2025-01-CIRCBIO-01 (Open Topic)
1. Single Market Access
• Direct route to 450+ million consumers and 23 million SMEs under one customs union and a harmonised regulatory space.
• Results (e.g. circular products, AI-enabled tools, DPP solutions) can be commercialised simultaneously in all 27 Member States without additional national certification, accelerating time-to-market by 6-18 months compared with a country-by-country roll-out.
• Facilitates rapid uptake of new business models (product-as-a-service, regenerative sourcing, etc.) that depend on network effects and wide demand.
2. Cross-Border Collaboration & Knowledge Exchange
• Consortium design can leverage complementary SME clusters – e.g. Nordic bio-material innovators + Central-European manufacturing + Southern eco-design studios – enabling full value-chain pilots impossible in a single country.
• Access to Enterprise Europe Network (EEN) nodes in all regions for partner search, matchmaking, joint IP management and post-grant commercialisation support.
• Shared piloting infrastructure (living labs, large-scale demonstrators) spreads CAPEX and de-risks investment; costs of pilot plants drop by up to 40 % when co-located across borders and jointly utilised.
3. Alignment with Flagship EU Policies
• European Green Deal, CEAP, Zero-Pollution Action Plan and EU Industrial Strategy provide a stable, long-term market pull for green and circular solutions.
• Regulatory drivers (CSRD, ESPR, DPP, EU Taxonomy) create mandatory demand — proposals can position SMEs as early movers and compliance solution providers.
• Synergies with the Digital Europe Programme allow integration of AI, blockchain and Twin-transition tools, boosting TRL and policy relevance.
4. Regulatory Harmonisation Benefits
• One set of eco-design, EPR and sustainability reporting rules reduces compliance cost per SME by an estimated 25–30 % compared with operating in fragmented non-EU markets.
• Uniform product standards and mutual recognition make it simpler to replicate pilots in new Member States (explicitly requested in the topic).
5. Access to the EU Innovation Ecosystem
• Eligibility for world-class RTOs and universities (Fraunhofer, VTT, TNO, CEA, etc.) plus European Data Spaces, providing latest research on circular metrics, LCA, AI and bio-based materials.
• Gateway to European Institute of Innovation & Technology (EIT) KICs (Manufacturing, RawMaterials, Climate), offering venture support and acceleration beyond the project life.
• Easier talent attraction through Erasmus+ mobility and Pact for Skills partnership — addressing the topic’s skills-development requirement.
6. Funding Synergies
• Can dovetail with regional ERDF/Interreg funds for physical demonstrators, Life Programme for specific environmental pilots, and InvestEU for scale-up finance.
• Blending with national Recovery & Resilience Facility (RRF) allocations can multiply CAPEX budgets and derisk first deployments.
• Seal of Excellence path for high-quality but unfunded proposals offers a second financing channel at national level.
7. Scale, Replicability & Impact
• Mandatory replication plan fits EU cohesion goals; success stories can be quickly transferred to other regions via Smart Specialisation Platforms.
• Potential to create EU-level circular procurement schemes, boosting SMEs’ order books and achieving measurable GHG, pollutant and resource-efficiency impacts across multiple Member States.
• Consortia meeting ‘large-scale operational environment’ requirement gain EU-wide visibility, improving market credibility and investment attractiveness.
8. Strategic Added Value for SMEs & Consortia
• Early engagement with policy-makers allows consortia to shape forthcoming delegated acts (e.g. ESPR product groups, Green Claims methodology).
• EU trademark protection and unified IP rules (Unitary Patent, Unified Patent Court) streamline exploitation planning.
• Participation strengthens ESG credentials, facilitating access to sustainable finance under EU taxonomy-aligned funds.
9. Key Take-Aways & Recommended Actions
• Build multidisciplinary, multi-country consortia including SME clusters, RTOs, NGOs and user-industries to maximise territorial and sectoral replication.
• Map complementarities with previous Horizon projects (2021-24) to avoid duplication and tap into existing data, pilots & communities.
• Include a clear strategy for leveraging ERDF/Interreg and InvestEU after TRL 8-9 to ensure EU-wide scale-up.
• Integrate CSRD/ESPR compliance modules into the solution to provide immediate commercial value for SMEs forced to comply from FY 2026 onward.
• Position policy-recommendation work package to feed directly into the 2027–2030 revision cycles of CEAP and ESPR, maximising impact beyond the grant.
Ready to Apply?
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See in 5 min if you're eligible for Open Topic: Innovative solutions for the sustainable and circular transformation of SMEs offering max €14.0M funding