Enabling environments for a sustainable and circular construction sector

HORIZON-NEB is a forthcoming Horizon Europe Innovation Action to develop and demonstrate place-based enabling environments (living labs, testbeds, regulatory sandboxes or combinations) that accelerate testing, validation, deployment and scale-up of New European Bauhaus-aligned sustainable and circular construction solutions. The single-stage call uses the Horizon lump sum grant model, opens 5 May 2027, closes 1 December 2027 at 17:00 Brussels time, and has an indicative topic budget of €9 million with an expected contribution of approximately €4.5 million per project (around two grants). Proposals must develop and operationally demonstrate at least one enabling environment, support at least two companies including at least one start-up, adopt a place-based participatory co-design approach, allocate at least 0.8% of the budget to NEB Academy engagement and aim to reach TRL 6–8 by project end. Eligible consortia are collaborative multi-actor partnerships of legal entities established in EU Member States or Horizon Europe Associated Countries and must be submitted via the European Commission Funding & Tenders Portal.

What it funds

Innovation actions to develop and demonstrate place-based enabling environments (living labs, testbeds, regulatory sandboxes or combinations) that allow construction companies to test, validate and scale NEB-aligned sustainable and circular construction solutions in real-life conditions. Projects must support at least two companies including at least one start-up, adopt participatory co-design with end-users and contribute learning to the NEB Academy.

Who can apply

Consortia of legal entities established in EU Member States or Horizon Europe associated countries (universities, research organisations, local public authorities, SMEs, industry and civil society). International partners may participate subject to the Horizon Europe rules and specific restrictions (e.g. participation rules apply to entities established in China). Proposals should include measures to engage the NEB Academy.

How much (budget and expected grant size)

Eligibility rules, admissibility (page limits), financial and operational capacity, evaluation and award criteria, and the model grant agreement follow Horizon Europe General Annexes; consult the call page on the Funding & Tenders Portal for application forms, templates and submission.

Call and administrative details

Topic purpose and scope

This topic funds the development and demonstration of enabling environments that accelerate the testing, validation, deployment and upscaling of New European Bauhaus (NEB)-aligned innovative construction solutions in real-life conditions. Enabling environments may be physical innovation spaces (living labs, testbeds), regulatory/institutional/financial frameworks (regulatory sandboxes, innovation deals), or a combination. Actions should bridge research, innovation and deployment, feed the NEB Academy (capacity building, knowledge and research, innovation and business development), generate data and blueprints for replication and policy uptake, and support place-based, participatory and transdisciplinary approaches.

Expected outcomes and impacts

Applicant profile, partnership and eligibility

What projects must deliver (proposal requirements)

Types of activities supported

Examples include establishing and operating physical innovation spaces (living labs, testbeds), regulatory sandboxes or innovation deals, frameworks enabling finance and fiscal incentives for circular construction, standardisation and monitoring pilots, demonstration and user trials, technical validation in real-life environments, development of governance and business models for sustainability and scale-up, socio-economic and acceptability studies, digital and data-enabled monitoring, and production of blueprints for replication and policy guidance.

Funding, budget and number of grants

Action budget and expected contributions are listed at call level. For the NEB call HORIZON-NEB-2027-01, the overall budget line for the REGEN-04 action is €9,000,000 for 2027 with an indicative number of grants around €4,500,000 each (two expected grants). The specific topic HORIZON-NEB indicates an overall contribution of €9,000,000 and around two grants expected at around €4,500,000 each. All grants will be awarded as lump-sum contributions under the Horizon lump-sum grant model (HORIZON-AG-LS).

Financial and co-funding requirements

The Work Programme and General Annexes set the financial and operational capacity checks. Lump-sum grants do not require detailed cost reporting to the Commission in the same way as traditional reimbursement grants, but beneficiaries must keep records and meet reporting obligations. Check Annex C and Annex G of the General Annexes for financial capacity and model grant agreement details. The topic text requires that proposals allocate at least 0.8% of their budget to NEB Academy engagement. No explicit mandatory co-funding percentage is stated in the topic text; applicants must follow general Horizon Europe eligibility and co-funding provisions and the lump-sum budgeting rules.

Geographic eligibility and restrictions

Beneficiaries must be legal entities established in eligible countries listed in General Annex B (EU Member States and Horizon Europe Associated Countries). Some non-associated third countries can be eligible under specific conditions. Legal entities established in China are not eligible to participate in RIAs and IAs under the destination. Additional restrictions exist for entities identified as high-risk suppliers for protection of European communication networks where topic text flags such restrictions; consult the General Annexes for details.

Application process, assessment and evaluation

Single-stage submission. Use the Submission System application form Part A and Part B, following page limits in Annex A and Part B of the application form. Standard evaluation criteria (Excellence, Impact, Quality and efficiency of implementation) apply per General Annex D. Scoring thresholds and weighting follow Horizon Europe evaluation rules and the Lump Sum/IA RIA standard forms will be used with necessary adaptations. Expect evaluators to assess TRL progression to 6-8 by project end, coherence with NEB principles, approach to users, policy uptake, and engagement with NEB Academy.

Workplan, deliverables and reporting

Projects must deliver technical and policy-oriented outputs and should plan regular reporting via the Portal (continuous reporting tool and periodic report). Proposals must contain deliverables that capture designs, monitoring/validation data, blueprints for replication, assessment of regulatory/institutional frameworks and lessons for policy uptake. The project must propose structural feedback loops to feed the NEB Academy and allocate at least 0.8% of budget to NEB Academy engagement and to the Horizon Europe-funded New European Bauhaus hub for results and impact.

Cross-cutting issues, ethics and data

All proposals must comply with ethics and research integrity requirements and with the Do No Significant Harm principle where relevant. Data management must be FAIR and align with EOSC/EHDS where appropriate. Proposals must address social acceptance, skills and training needs and contribute to standards and policy learning. Ethical compliance checks and data protection (GDPR) obligations apply. For clinical or human-subjects elements, use the Clinical Studies template where required.

Evaluation timetable and grant agreement

Evaluation, ranking, and grant signature follow Horizon Europe procedures described in General Annex F and the Funding & Tenders Portal Online Manual. Indicative opening 05 May 2027; deadline 01 December 2027. Expected grant agreement will be under the Horizon Lump Sum MGA (HORIZON-AG-LS).

Templates and application structure

Use the online Submission System forms. The application uses Part A (administrative data) and Part B (technical description). Adhere to page limits and layout described in Annex A and Part B of the Application Form in the Submission System. Include required annexes: ethics, data management, information on financial support to third parties (if applicable), clinical studies template (if applicable), and any call-specific annexes listed in Reference Documents. A Detailed Budget Table (for Lump Sum projects the HE LS template) is available in Reference Documents and must be used as instructed.

Key risks and considerations for applicants

Key proposal risks include insufficient demonstration of real-life testing capacity, weak evidence of stakeholder engagement across the value chain, failure to show scalability and replication pathways, weak regulatory/policy engagement or unclear sustainability and financing plans for post-project scale-up. Proposals should mitigate these by presenting clear governance, stakeholder commitments, business models, policy learning loops and robust evaluation plans. Consider harmonisation with national/regional funding and standards, and data management and security concerns (including EU restrictions).

Technology and sector focus

Application stages, assessment and success rates

Intellectual property and exploitation

Beneficiaries retain ownership of results but must follow Horizon Europe MGA rules on background and results, access rights and exploitation. Proposals should provide IP strategies, exploitation and dissemination plans (including open access to publications and FAIR data where possible), and consider licensing, standardisation and procurement paths to market. Where actions include financial support to third parties, include transparent selection and conflict-of-interest safeguards.

Support and helpdesk

Use the Funding & Tenders Portal Online Manual and the Horizon Europe Programme Guide. Contact National Contact Points (NCPs) and the Portal IT Helpdesk for technical issues. Enterprise Europe Network and other NCP services support SMEs and international partners. Partner search tools are available on the Portal.

Summary

Enabling environments for a sustainable and circular construction sector

HORIZON-NEB

This is a forthcoming Horizon Europe Innovation Action under the call Innovative models for neighbourhoods that integrate beauty, inclusiveness and sustainability. The opportunity supports the development and demonstration of physical, regulatory, institutional, fiscal or financial enabling environments that help construction companies test, validate, deploy and scale up New European Bauhaus aligned innovative solutions in real-life conditions. 1

The opportunity is particularly relevant to consortia combining construction companies, start-ups, research and technology organisations, public authorities, designers, investors, civil society organisations and other actors able to operate a place-based demonstration environment.

Key opportunity facts

The topic is a single-stage Innovation Action using a Horizon lump sum grant. The planned opening date is 5 May 2027 and the deadline is 1 December 2027 at 17:00 Brussels time. 2

The indicative topic budget is €9 million. The Commission estimates that approximately €4.5 million per project would be appropriate, with an indicative expectation of two funded projects. Proposals may request a different amount if properly justified and proportionate to the proposed work. 2

The topic does not specify a fixed project duration. Applicants should propose a duration that is credible for designing, establishing, operating and evaluating the enabling environment, achieving the required technology maturity and producing transferable evidence and blueprints.

Opportunity profile

Programme

Type of action

Horizon Europe Innovation Action.

Grant model

Horizon Lump Sum Grant. The grant is structured around an approved lump sum budget and completion of the agreed work and outputs rather than reimbursement of each individual actual cost item. 3

Submission procedure

Single-stage proposal submitted through the European Commission Funding and Tenders Portal.

Deadline and budget

Topic identifier

HORIZON-NEB.

Planned opening

5 May 2027.

Submission deadline

1 December 2027 at 17:00 Brussels time. Applicants should not wait until the deadline because portal submission, participant validation and electronic signatory arrangements can create practical delays.

Indicative EU budget

€9 million for the topic.

Indicative grant size

Approximately €4.5 million per project.

Indicative number of grants

Approximately two.

Funding rate

The topic does not state a separate topic-specific reimbursement rate. Because this is an Innovation Action, the applicable Horizon Europe funding rates and eligibility rules in the General Annexes and Model Grant Agreement apply. The lump sum structure means that the approved contribution is linked to the agreed budget and completion of work packages and activities. Applicants should confirm the applicable rates for each beneficiary category in the final 2026 to 2027 General Annexes before finalising the budget.

What the funding is intended to achieve

The project should create demonstrated environments that enable construction companies to test, validate, deploy and upscale NEB-aligned innovative construction solutions. It should also produce evidence, data, practical blueprints and policy learning that can be replicated in other locations and fed into the three pillars of the NEB Academy. 1

The topic addresses barriers affecting both traditional construction and offsite construction. These barriers include fragmented value chains, limited finance, inadequate incentives, insufficient standardisation, skills shortages, regulatory constraints and low societal acceptance.

The enabling environment may take one of three forms

Physical innovation space such as a living lab, demonstration site or testbed where construction solutions can be tested and validated in real-life conditions.

A supportive framework such as a regulatory sandbox or innovation deal addressing regulatory, institutional, fiscal or financial conditions that affect deployment and scale-up.

A combination of physical testing infrastructure and supportive regulatory, institutional, fiscal or financial arrangements.

Mandatory project components

Every proposal should address all of the following requirements:

Eligible solution areas

Construction solutions may concern new construction, renovation, retrofitting and refurbishment. Refurbishment is understood as changes to a building's space plan or function for a new use, consistent with the standards applied by the European Committee for Standardisation.

Relevant solutions may involve circular materials, bio-based products, reuse, adaptable buildings, offsite or modular construction, digital tools, resource efficiency, nature-based approaches, regenerative design, cultural heritage, vernacular knowledge, building renovation, disassembly, maintenance or new delivery and deployment models.

Technology readiness level

Activities may start at any technology readiness level, but projects are expected to achieve TRL 6 to TRL 8 by the end of the project. Proposals therefore need a credible pathway from development or adaptation through demonstration in an operational environment and towards validation, deployment or market uptake.

Applicant and consortium profile

The opportunity is designed for collaborative consortia rather than isolated applicants. A strong consortium would normally include a coordinator with proven project and financial management capacity, construction or technology companies, at least one start-up, a public authority responsible for the demonstration location or regulatory context, research and technical expertise, designers or architects, end-user representatives, investors or finance actors and civil society organisations.

Companies can participate as solution developers, construction-sector adopters, testbed operators or beneficiaries receiving support through the enabling environment. Start-ups should have a substantive role rather than being included only to satisfy the eligibility requirement.

Public authorities are particularly important where the proposal involves planning, permitting, building regulation, procurement, public land, public housing, local development strategies or regulatory experimentation.

Research organisations should support methodology, monitoring, technology validation, environmental and social assessment, replication evidence, skills analysis and policy learning. Designers, users and civil society should be involved in co-design and not limited to dissemination activities.

General eligibility considerations

The standard Horizon Europe eligibility rules apply. Applicants should normally be legal entities established in an EU Member State or a Horizon Europe Associated Country, subject to the final Work Programme General Annexes and Programme Guide. Certain non-EU and non-associated countries may participate where specific provisions make their entities eligible for funding or where exceptional funding is justified.

The consortium should be built around the standard Horizon Europe collaborative participation requirements, including the required number of independent legal entities from different eligible countries, unless a specific exception applies in the final call conditions.

Legal entities established in China are not eligible to participate in Innovation Actions or Research and Innovation Actions under this destination. This restriction should be checked carefully before including any Chinese organisation in the consortium. 4

All participants must satisfy the applicable financial and operational capacity requirements and must not fall within the exclusion situations established by the Horizon Europe rules.

Consortium design recommendations

Place-based and participatory requirements

The proposal should identify a specific place, local ecosystem or governance setting and explain why it is suitable for testing the proposed solutions. The place should offer practical access to users, construction stakeholders, public authorities and relevant infrastructure or regulatory conditions.

The participatory approach should cover the full project cycle, including problem definition, solution design, selection of demonstration cases, implementation, monitoring, evaluation and replication planning. The proposal should explain how conflicting interests, accessibility, affordability, inclusion and user acceptance will be managed.

A credible place-based approach should also address local risks such as permitting delays, fragmented ownership, heritage constraints, procurement limitations, supply chain capacity, skills shortages and community opposition.

NEB Academy and knowledge contribution

The project is expected to become part of the NEB Academy ecosystem. It should generate lessons that support capacity building, skills development, knowledge and research, and innovation and business development in the built environment.

At least 0.8% of the project budget must be allocated to engagement with the NEB Academy and the New European Bauhaus hub for results and impact. This should be visible in the work plan, budget allocation, responsibilities, milestones and deliverables rather than treated as a general communication activity.

The proposal should establish feedback mechanisms that allow practical experience from the demonstration to influence skills needs, training priorities, public policy, regulatory approaches and future investment decisions.

Evaluation and award process

The action uses a single-stage evaluation. Proposals are assessed against Excellence, Impact, and Quality and efficiency of implementation. The standard evaluation approach uses scores from 0 to 5, with a threshold of 3 for each criterion and an overall threshold of 10 points out of 15, subject to the final topic-specific rules. 5

Evaluation focus

Excellence will cover the clarity and relevance of objectives, the ambition and innovation of the approach, and the soundness of the methodology.

Impact will cover the credibility of the pathway to the expected outcomes and impacts, the scale and significance of the contribution, and the quality of dissemination, exploitation and communication measures.

Implementation will cover the work plan, work package logic, risk management, resource allocation, participant capacity and the complementarity of the consortium.

For a lump sum proposal, evaluators also assess whether the proposed cost estimates are reasonable, credible and sufficiently linked to the work required. An apparently inflated, weakly justified or poorly distributed budget can reduce the proposal's competitiveness even where the activities are relevant.

Budget and financial conditions

The grant uses a lump sum model. Applicants must prepare a detailed and credible budget by beneficiary and work package, using the applicable lump sum templates and instructions. The budget should reflect personnel, subcontracting, travel, equipment, access to sites, testing, stakeholder engagement, communication, monitoring, evaluation and exploitation needs.

Lump sum financing does not remove the need for sound financial planning. Applicants remain responsible for carrying out the agreed action, meeting contractual obligations, maintaining appropriate records and delivering the work and outputs described in the grant agreement.

The call information does not indicate financial support to third parties as a required project mechanism. Applicants should not assume that they can issue subgrants or prizes to companies unless this is expressly permitted by the final Work Programme and described in the proposal using the required financial support to third parties documentation.

Subcontracting should be limited to tasks that cannot be performed by beneficiaries and should not undermine the consortium's operational capacity or the beneficiaries' responsibility for the action.

Expected outputs and evidence

Key risks applicants should address

Recommended application structure

Overall assessment

This is a strategically relevant but demanding Innovation Action for organisations able to combine real construction-sector deployment with public-sector coordination, user participation and policy learning. The strongest applications are likely to present an operational place, committed companies including a start-up, a clearly empowered public authority, a tested governance model and a measurable route from demonstration to replication and scale-up.

The opportunity is not primarily a conventional research grant for developing a technology in isolation. It is better suited to a consortium that can remove deployment barriers and demonstrate how a physical testbed, living lab, regulatory sandbox, innovation deal or combined model can accelerate uptake of sustainable and circular construction solutions.

Applicants should verify the final published Work Programme, General Annexes, application templates and Funding and Tenders Portal conditions before submission because the opportunity is currently forthcoming and some implementation details, including duration and final eligibility wording, may be clarified or amended before opening.

Official source and supporting references

The authoritative opportunity page is the European Commission Funding and Tenders Portal topic page. 6

The New European Bauhaus Work Programme confirms the indicative €9 million topic budget, approximately €4.5 million expected contribution per project, the opening and deadline dates, the Innovation Action type and the TRL 6 to TRL 8 expectation. 2

A European Commission overview describes the topic as a new funding opportunity supporting the NEB Academy and connecting skills development, research and innovation, and real-world experimentation. 7

Footnotes

1. 1European Commission and CORDIS topic summary: CORDIS topic summary
2. 2European Commission, New European Bauhaus Facility Work Programme 2026 to 2027: New European Bauhaus Work Programme
3. 3The topic conditions identify the Horizon Lump Sum Grant model and refer applicants to the Horizon Europe lump sum decision and Model Grant Agreement documentation available in the Funding and Tenders Portal reference documents.
4. 4The destination conditions state that legal entities established in China are not eligible to participate in Research and Innovation Actions or Innovation Actions under the destination.
5. 5The standard Horizon Europe evaluation forms identify Excellence, Impact, and Quality and efficiency of implementation as the evaluation criteria, with individual thresholds of 3 and an overall threshold of 10 for single-stage proposals unless topic-specific provisions apply.
6. 6European Commission Funding and Tenders Portal topic page: Funding and Tenders Portal topic
7. 7European Commission New European Bauhaus news item: Horizon Europe Work Programme 2026 to 2027