HORIZON-CL6-2025-01-CIRCBIO-01: Novel circular business models to enable the just transition to a sustainable and circular economy
Updated on 16.06.2025
In supporting the implementation of the European Green Deal, and in particular the 2020 circular economy action plan (CEAP), the Waste Framework Directive and the Ecodesign for Sustainable Products Regulation (ESPR), successful proposals will contribute to the expected impacts of this Destination, notably to benefits for industry and consumers from new opportunities both through sustainable novel products in line with ecodesign principles, and to novel circular business models that have a mitigating impact on resource use and greenhouse gas emissions and contribute to increasing Europe’s sustainable competitiveness.
Project results are expected to contribute to all of the following expected outcomes:
- consumers obtain access to new circular products and services, such as reuse, repair and sharing, that encourage sustainable consumption and thus reduce the environmental footprint, greenhouse gas emissions, and the pressure on biodiversity;
- economic operators that want to introduce circular business models are provided with proved successful examples and recommendations how to do it;
- (re-)skilling programmes and new job opportunities emerge in the areas of re-use, preparing for reuse, repair, upgrade, refurbishment, repurpose, and remanufacture.
Relevance for Circular Systemic Solutions
This call is relevant for cities and regions aiming to develop and demonstrate, at scale, innovative business models that enhance product reliability and durability, as well as support reusability, reparability, refurbishment, repurposing, and remanufacturing, including early-stage preparation. To achieve a successful green transition and shift toward a circular economy, it is essential not only to rethink how materials are used and products are designed, but also to transform how businesses operate and structure their models.
This transformation calls for systemic change, where new business models play a crucial role in enabling sustainable consumer behaviors and reshaping purchasing preferences. To acheive this, proposals should explore the territorial and geographical dimensions of the establishment and success of new business models and aim at synergies with the New European Bauhaus and the Circular Cities and Regions Initiative (CCRI). Projects are strongly encouraged to organise joint activities, ensure synergies and undertake clustering activities with CCRI projects and the CCRI Coordination and Support Office.
Applicant criteria
Any type of organisation can apply for Horizon Europe funding as long as they have the operational and financial capacity to carry out the tasks that they propose. For most calls for proposals, you must apply as a team of at least 3 partner organisations from 3 different EU or associated countries.
At least one of the 3 partners must be from an EU country. In addition to these 3 partners, organisations from other countries might be able to join your consortium.
More information in the Horizon Europe programme guide. Further details or exceptions are listed on the pages of the call topics in the Funding & tenders portal.
Eligible projects/themes
Proposals should assess and quantify, including monetisation, when possible, the environmental, social and economic impacts of these novel business models on relevant stakeholders.
Proposals should analyse the ‘pull’ factors that shift consumer choices in the direction of products/services offered by circular business models, as well as what can encourage more to do so. Ecodesign requirements laid down in the ESPR and EU Ecolabel aspects, and the verification of green claims should be considered where relevant. Proposals should contribute to the development of innovative business models, including social economy entities and social enterprises, to enable the transition towards a circular and sustainable ecosystem and to stimulate the uptake of sustainable consumption patterns.
Proposals should address the opportunities of developing new business models in the context of the circular economy R-strategies (refuse, rethink, reduce, reuse, repair, refurbish, repurpose, remanufacture) as well as upgrade and product-as-a-service business models. Proposals should also explore self-sufficiency approaches and promote regenerative practices aimed at restoring biodiversity, mitigating climate change, and strengthening local communities and social justice.
The proposals should address the different perspectives of all relevant actors in a proposed project, which could be actors involved in raw material sourcing, material processing and manufacturing, intermediate production, end-product manufacturing, as well as brand owners, retailers, enterprises, re-use and repair organisations, civil society/consumers, etc. Proposals should also reflect on how access to finance can be facilitated and how economic viability can be ensured, and how governance can promote the establishment of these new business models. Critical issues of change management, scaling and diffusion of solutions should be addressed.
Amount of funding
The total indicative budget for the topic is EUR 10.00 million. The Commission estimates that an EU contribution of around EUR 5.00 million would allow these outcomes to be addressed appropriately. Nonetheless, this does not preclude submission and selection of a proposal requesting different amounts.
Application process
- EC publishes calls for proposals on the funding and tenders portal
- The call is open for an usual period of ca. 5 months where applicants can submit they proposal
- Proposals can be single or two-stage application processes. A single stage application process requires the filling in of a structured proposal of max. 45 pages including objectives and innovation approach (excellence), tangible impacts that can be achieved through the project (impact) and the project planning and tasks (quality). If a two stage, the aforementioned would be the second stage application while the first is a simplified proposal of max 10 pages including only excellence and impact sections. These documents are to be uploaded to the portal in pdf format alongside filling in the respective parts of the portal with administrative information on the beneficiares, affiliated entities or others. All participants in a project need to possess a Partipant Identification Code (i.e. PIC number, a 9-digit number registered on ECAS). For more information, please see the work programme and the call documents.
- Proposal submitted within the deadline will be evaluated by experts against evaluation criteria.
- Winning proposals will be invited for signing a grant agreement with the EC.
Deadlines
Opening: 06 May 2025
Deadline: 17 Sep 2025
<5 000
large 500 000-200 000, medium 200 000-50 000, and small cities 50 000-5 000
large metropolitan area >1.5 million, metropolitan area 1.5 million-500 000
predominantly urban regions, intermediate and predominantly rural regions, refer to TERCET typology NUTS 3 region
e.g. commercial, residential, service, industrial