Project partners include the Government of Aragon (policy alignment), ANCES (links to private funders), AITIIP (technical support to projects), the European Business Network (to liaise with a wide range of European regions and the CCRI), and the University of Leiden (expertise in circularity assessment). Implementing a shift from a linear to a circular business model involves significant risks, which necessitates de-risking alongside a supportive learning environment. Providing financial support is essential, as investors and lenders need to better understand and assess whether financing such business investments in circular transitions will yield returns, allowing them to eventually take on the role of providing risk capital.

RESOURCE thus aims to co-create a Project Development Assistance (PDA) solution that strengthens Circular Economy projects, supports innovative business models, and develops investment schemes to help these projects raise funds from the private market in Aragon. In this project, 9 pilot projects will seek funds amounting to EUR 20 million. The approach developed in the project draws from European best practices and aims to be replicable in other regions. RESOURCE focuses on the Aragon region and will run for 36 months.

G.A.C. Group, France

Aragon

Scope:

• Circular Cities and Regions Initiative’s Project Development Assistance (CCRI-PDA).
• Support project promoters in developing their projects.
• Bring together the technical, economic, and legal expertise needed for developing circular economy investment projects.
• Result in the actual launch of investments during the action.

Objectives of the Project:

• Develop new Project Development Assistance services to fund regional circular economy investment projects based on improved governance and innovative organisation of the Aragon business service support ecosystem. This will enable the selection of circular economy investment projects with demonstrated financial viability and sustainability, serving as tangible showcases to trigger further market replication.
• Build an integrated expertise pool to provide technical, economic, and legal support for regional circular economy investment projects.
• Develop innovative financing schemes to boost private investment for circular economy projects and launch concrete investments.
• Ensure a high degree of replicability of the PDA and related services for dissemination across Europe.
• Maximise and measure the project’s impacts for optimal dissemination of results in Aragon and beyond.

Technical, economic, and legal assistance; innovative financing schemes to boost private investment; methodology; dissemination and replicability; studies; monitoring; etc.

• D1.1 Stakeholder mapping: Report highlighting all stakeholders involved in the project, at local and European levels, their interests, and points of convergence and divergence. This deliverable is the result of Task 1.1.
• D1.2 Stakeholder engagement strategy: Report detailing strategies for the engagement, sustainment, and management of stakeholders during and beyond the project. This deliverable is the result of Task 1.1.
• D1.3 Results of co-creation workshops: Presentation of the methodology, results, main conclusions, and next steps. This deliverable is the result of Task 1.2.
• D1.4 Expert committee founding members and rules: Document formalising the functioning of the expert committee. This deliverable is the result of Task 1.3.
• D2.1 Opportunity mapping for circular economy projects: Summary of the potential to create a sustainable circular economy within each of the main Aragonese value chains. This deliverable is the result of Task 2.1.
• D2.2 Circular bioeconomy readiness level: Assessment of development levels across different criteria (technological, social, legal, etc.) for each of the main Aragonese value chains. This deliverable is the result of Task 2.2.
• D2.3 Guidelines for legal and regulatory sustainability in circular economy projects: Description of the expected impact on the region's sustainability based on circular models. This deliverable is the result of Task 2.3.
• D2.4 Guidelines for actionable circular economy projects: Real plans for the operative implementation of circular economy models for each main value chain are summarised here. This deliverable is the result of Task 2.4.
• D3.1 Innovative business plans to attract investors: Workshops where project partners teach start-ups how to present innovative business plans (decks) appropriately for investment rounds with potential investors. The results of these workshops will be summarised in a document. This deliverable is the result of Task 3.1.
• D3.2 Report on criteria required for CE projects to attract private investors: A list of criteria will be drafted to establish common elements for CE projects to attract private investors. This deliverable is the result of Task 3.2.
• D3.3 Report on critical needs and ideas of investors when investing in projects: A list of criteria that outline investors' critical needs and ideas for investing in CE projects. This deliverable is the result of Task 3.3.
• D3.4 Results of the demo days and signed contracts list: To secure the required funding, CE projects in our region will participate in various investment forums, and the project will hold demo days. The results of these demo days and the signed contracts after matchmaking will be summarised in a document. This deliverable is the result of Task 3.4.
• D4.1 Map of CE projects implemented across EU countries: Desk research by project partners will identify CE projects implemented in different EU countries, utilising networks of contacts across the continent. The mapping results will be summarised in a document. This deliverable is the result of Task 4.1.
• D4.2 European circular economy best practices selected: Following the mapping exercise, the consortium will identify five European CE best practices to benchmark with RESOURCE-identified projects. Five presentation sessions will be organised in different EU countries to select CE best practices implemented at the EU scale. This deliverable is the result of Task 4.2.
• D4.3 List of evaluation criteria: A list of criteria for evaluating CE best practices to ensure common evaluation elements. This deliverable is the result of Task 4.2.
• D4.4 Benchmarking and tailored coaching sessions organised (3 rounds each): A cycle of workshops will focus on 1) benchmarking the RESOURCE project with selected EU best practices, 2) analysing projects' strengths and weaknesses and providing tailored coaching, and 3) offering insights on pitching techniques and traditional and non-traditional financing sources. This deliverable is the result of Task 4.3.
• D4.5 RESOURCE policy brief: Policy recommendations to be shared with the CCRI on enhancing private investments in the circular economy. This deliverable is the result of Task 4.4.
• D5.1 Communication, dissemination, and outreach strategy: Report detailing the audience, messages, and channels for RESOURCE. This deliverable is the result of Task 5.1.
• D5.2 Dissemination and outreach strategy update: Highlights of the progress made in the communication and dissemination strategy. This deliverable is the result of Task 5.1 and Task 5.2.
• D5.3 Report on international networks, policy outreach, and recommendations: List of organisations and actors, complemented with recommendations shared during workshops and benchmarking initiatives. This deliverable is the result of Task 5.3.
• D5.4 Exploitation and sustainability draft plan: Report on the main asset(s) of RESOURCE and their exploitation beyond the project. This deliverable is the result of Task 5.4.
• D5.5 Final exploitation and sustainability plan: Report on the main asset(s) of RESOURCE and their exploitation beyond the project, including business canvases where relevant. This deliverable is the result of Task 5.4.
• D5.6 RESOURCE impact assessment: Definition of indicators, data analysis, and recommendations. This deliverable is the result of Task 5.5 and Task 2.1 and assesses the hypothetical economy-wide diffusion of the selected circular projects.
• D6.1 Project handbook and quality assurance plan: Document outlining the management of internal communication and assigning clear responsibilities to all relevant partners to carry out the project efficiently. This deliverable is the result of Task 6.1.
• D6.2 Data management plan – initial plan: Document outlining how data collected, stored, and generated will be handled during this project. This deliverable is the result of Task 6.5.
• D6.3 Data management plan – final version: Document outlining how data collected, stored, and generated will be handled after this project. This deliverable is the result of Task 6.5.
   

Lessons learned from best practices across Europe:

• Regions offering supportive regulatory frameworks and incentives provide a competitive edge to circular projects.
• Ecosystems that offer diverse funding options at different stages, along with BSOs that have developed specialised tools and frameworks tailored to the needs of CE start-ups and SMEs, have proven to be advantageous.

• Cross-participation in events has already taken place: RESOURCE partners spoke at a BIOBOOST event, and we are currently collaborating with InvestCEC to invite investment experts for a co-creation meeting.
• Share information and knowledge from the project with CCRI-CSO.
• Take an active part in CCRI support activities for Pilot and Fellow cities and regions.
• Participate in CCRI events.
• Provide input, support, and knowledge to the Thematic Working Groups of the CCRI-CSO.
• Share knowledge to enable the replication of best practices and business models in other regions.
• Contribute PDA methodology as input for CCRI methodology.

• Changes in political orientation and instability in the political landscape present significant risks for this emerging focus.
• Liaise with a circular economy-friendly network of banks.
• Make circular economy projects attractive to investors.

• Circular Aragon Strategy: The Government of Aragon has expressed a strong interest in funding circular projects. A call for aid for R&D projects in the circular economy was issued (BOA of 25 August 2021). Based on this initiative and its own networks, the Government of Aragon has identified a portfolio of circular projects in need of funding, which may be invited to participate in this project.
• Circular economy laws are evolving at the European level.

A proactive search will be conducted for existing initiatives and those that may arise during the project’s duration, such as crowdlending, crowdlending-factoring, business angels, participatory loans, and business accelerators/incubators. Additionally, funding from various administrations may complement these innovative and traditional financial initiatives. New financing instruments, such as open banking, direct lending, the alternative stock market, and crowdfunding, will facilitate quicker and easier funding access for SMEs.

These innovative finance schemes will enable access to a diverse range of (new) funding sources, provided ‘just in time’, significantly reducing the time needed to secure necessary funds.

Examples of funding sources: Business angels, equity crowdfunding, venture capital, private equity, corporate venturing, and banks.

The project proposes an innovative assessment for circular projects, covering multiple dimensions, including the environmental aspect, with input from experts in the field.
 

Communication and dissemination measures are planned to raise awareness of circular projects and their results among the general public. We will work with relevant capacity-building organisations in Aragon to promote actions that involve civil society.

The project methodology is focused on creating and refining innovative business models for CE projects, based on the main circular business model principles:

• Source products and materials from the economy, not from ecological reserves.
• Create value for customers by adding value to existing products and materials.
• Create valuable inputs for businesses beyond your direct customers.

The economy-wide impacts will be assessed in deliverable D5.6, providing additional insights into the social, environmental, and economic dimensions.

• Institutional stakeholders: GoA, CEEI, and other relevant parapublic stakeholders.
• Intermediary organisations and facilitators: Regional clusters, key research institutes, including finance networks and associations.
• Finance stakeholders: Business angels, incubators/accelerators, equity crowdfunding platforms, family offices, media for equity, venture capital and private equity, corporate entrepreneurship.
• Final beneficiaries: Companies involved in the circular economy.

• Departamento de Economia Y Empleo - Gobierno De Aragon, Spain
• Fundacion AITIIP, Spain 
• European Business and Innovation Centre Network, Belgium
• University of Leiden, The Netherlands
• Centro Europeo de Empresas e Innovacion de Aragon SA, Spain