Introducing circular economy models in the construction sector, from buildings to city scale

The HORIZON-MISS-2026-04-CIT-NEB-B4P-CCRI-03 grant opportunity focuses on introducing circular economy models within the construction sector, extending from individual buildings to city-wide applications. This call, part of the Horizon Europe Programme, is categorized under Innovation Actions with a total budget of €47.5 million aimed at fostering climate-neutral and smart cities.

The project will open for submissions on February 4, 2026, and will close on October 8, 2026. The application process is single-stage, requiring a complete proposal by the deadline. A total of five grants will be awarded, with each grant providing a fixed funding amount of €9.5 million. This grant is structured as a lump sum, simplifying financial management by linking funding to defined project deliverables rather than actual incurred costs.

Eligible applicants must form a consortium of at least three cities, each represented by a local authority from different EU Member States or Associated Countries. Additionally, at least one city must be among the 112 designated cities participating in the EU Mission on Climate-Neutral and Smart Cities. The consortium may also include a variety of participants such as small and medium-sized enterprises, research institutions, large enterprises, and various stakeholders involved in the construction sector.

The project aims to develop and demonstrate practical tools and solutions for circular economy practices, addressing several thematic areas including waste management, building renovation, and energy efficiency. A significant focus will be placed on urban mining, recycling of construction materials, and creating sustainable business models. Projects are expected to contribute to reducing greenhouse gas emissions and promoting resource efficiency.

While there is no formal requirement for co-funding, practical expectations suggest that substantial in-kind contributions and resources from partners will be necessary for successful project execution. Collaborative efforts with relevant initiatives such as the New European Bauhaus and the Circular Cities and Regions Initiative are encouraged.

The expected outcomes include demonstrable reductions in material use and energy consumption, as well as the establishment of replicable circular construction models. The overall vision is to innovate and scale circular practices that contribute significantly to the EU's sustainability goals.

Submission guidelines require adherence to specific proposal structure and eligibility criteria, which detail necessary components of the application, including financial and operational capacity.

Overall, this grant opportunity is aimed at ambitious consortia capable of spearheading transformative changes in the construction industry's approach to sustainability and circularity.

The EU Funding & Tenders Portal presents a call for proposals under the Horizon Europe Programme, specifically targeting the implementation of the Climate-Neutral and Smart Cities Mission (HORIZON-MISS-2026-04). The call focuses on introducing circular economy models in the construction sector, spanning from individual buildings to the city scale, with the topic identifier HORIZON-MISS-2026-04-CIT-NEB-B4P-CCRI-03. This is a HORIZON Innovation Action (HORIZON-IA) with a HORIZON Lump Sum Grant [HORIZON-AG-LS] agreement type. The deadline model is single-stage, with a planned opening date of February 4, 2026, and a deadline of October 8, 2026, at 17:00:00 Brussels time.

The expected outcomes of the projects funded under this call include: a measurable increase in the number of tools and solutions at the district or city level supporting the application of circular economy models by public and private stakeholders in the construction sector; a measurable reduction of material use and an increase in reuse and recycling through new and replicable business models; and a measurable reduction in energy and other resource use, as well as whole life-cycle GHG emissions of buildings and building stock by introducing circular economy activities.

The scope of the call emphasizes applying circularity principles in the construction sector to reduce GHG emissions and promote efficient resource use, contributing to climate-neutral, smart, and circular cities. Proposals should develop and demonstrate tools and solutions at the district or city level to support circularity principles, quantifying their impacts through urban mining, reuse and recycling of construction products, use of secondary biobased materials, and innovative building design. Solutions for diagnosing and characterizing used construction products and demolition waste are also encouraged, along with the creation of inventories of reclaimed products and appropriate business models. The development of whole life-cycle GHG emissions inventories of buildings is expected to support decision-making in line with the Energy Performance of Buildings Directive (EPBD) recast. Projects should contribute to reducing regulatory barriers and developing standards, integrate different value chains, involve construction sector stakeholders, policymakers, and impacted people, including SMEs, building owners, local authorities, and civil society. The proposed tools and solutions must be demonstrated in at least three cities from different Member States or Associated Countries, with at least one city participating in the EU Mission on Climate-Neutral and Smart Cities.

This topic contributes to the Cities Mission, the New European Bauhaus (NEB), the European Partnership on 'People-centric Sustainable Built Environment' (B4P), and the EU Circular Cities and Regions Initiative (CCRI). Clustering activities with other relevant Horizon Europe projects are encouraged to promote synergies. Proposals should include a dedicated task and allocate resources for collaboration with relevant projects and initiatives. Dissemination and exploitation strategies should feature actions for promoting results on platforms like the Cities Mission Platform, the NEB hub, B4P, and CCRI websites.

The general conditions for admissibility include proposal page limits and layout as described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes and Part B of the Application Form. Eligible countries are described in Annex B of the Work Programme General Annexes, with specific provisions for non-EU/non-Associated Countries outlined in the Horizon Europe Programme Guide. Additional eligibility criteria require at least three cities, represented by a local authority or entity with consent, from different Member States or Associated Countries, to participate as beneficiaries, with at least one city from the 112 cities selected for the EU Mission on Climate-neutral and Smart Cities. Financial and operational capacity and exclusion are detailed in Annex C, while evaluation and award criteria, submission and evaluation processes, and the indicative timeline are described in Annexes D and F of the Work Programme General Annexes and the Online Manual.

Grants awarded will be linked to action HORIZON-MISS-2021-CIT-02-03, requiring collaboration with the Cities Mission Platform formalized through a Memorandum of Understanding. Eligible costs will take the form of a lump sum, as defined in the Decision of July 7, 2021. Annex G of the Work Programme General Annexes provides further details.

Application and evaluation forms are available in the Submission System, with standard application forms (HE RIA, IA) and evaluation forms. Guidance is provided through the HE Programme Guide, Lump Sum MGA, detailed budget table (HE LS), and specific guidance on lump sums. Additional documents include the HE Main Work Programme 2026-2027, HE Framework Programme 2021/695, EU Financial Regulation 2024/2509, and other related documents.

The budget overview indicates that HORIZON-MISS-2026-04-CIT-01 has a budget of 20,000,000 EUR, HORIZON-MISS-2026-04-CIT-02 has a budget of 18,000,000 EUR, and HORIZON-MISS-2026-04-CIT-NEB-B4P-CCRI-03 has a budget of 47,500,000 EUR. The opening date for all three is February 4, 2026, with a deadline of October 8, 2026.

Partner search announcements are available, and the submission system will open on the date stated in the topic header. Support is available through the Online Manual, Horizon Europe Programme Guide, Funding & Tenders Portal FAQ, Research Enquiry Service, National Contact Points (NCPs), Enterprise Europe Network, IT Helpdesk, European IPR Helpdesk, CEN-CENELEC Research Helpdesk, ETSI Research Helpdesk, and the European Charter for Researchers.

In summary, this Horizon Europe call seeks to fund innovation actions that introduce circular economy models in the construction sector at the building and city level. It aims to reduce GHG emissions, promote resource efficiency, and support the EU's climate-neutral and smart cities mission. The call requires collaboration among cities, research institutions, and industry stakeholders to develop and demonstrate tools, solutions, and business models that facilitate the adoption of circular construction practices. The funding is provided as a lump sum, and projects are expected to contribute to the broader goals of the New European Bauhaus, the Sustainable Built Environment Partnership, and the Circular Cities and Regions Initiative.

Eligible Applicant Types: The eligible applicant types include cities represented by a local authority or by an entity with explicit consent from the local authority, SMEs, building owners, local authorities, civil society, and other relevant construction sector stakeholders and policy-makers. A number of non-EU/non-Associated Countries are also eligible.

Funding Type: The funding type is a grant, specifically a HORIZON Lump Sum Grant.

Consortium Requirement: A consortium is required. At least three cities, each from a different Member State or Associated Country, must participate as beneficiaries.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility includes EU Member States and Associated Countries. A number of non-EU/non-Associated Countries are also eligible for funding, subject to specific provisions.

Target Sector: The target sector is the construction sector, with a focus on circular economy, climate-neutrality, smart cities, sustainable built environment, urban mining, reuse and recycling of construction products and materials, use of secondary biobased materials, building design, renovation, repurposing of buildings, waste prevention, and energy performance of buildings. It also relates to the Cities Mission, the New European Bauhaus (NEB), the European Partnership on 'People-centric Sustainable Built Environment' (B4P), and the EU Circular Cities and Regions Initiative (CCRI).

Mentioned Countries: No specific countries are mentioned, but the opportunity is open to Member States and Associated Countries.

Project Stage: The expected project stage is demonstration, as proposals are expected to develop and demonstrate tools and solutions at district or city level.

Funding Amount: The funding amount varies by topic. For HORIZON-MISS-2026-04-CIT-01, the budget is EUR 20,000,000 with an indicative contribution of around EUR 10,000,000 per grant and 2 grants expected. For HORIZON-MISS-2026-04-CIT-02, the budget is EUR 18,000,000 with an indicative contribution of around EUR 6,000,000 per grant and 3 grants expected. For HORIZON-MISS-2026-04-CIT-NEB-B4P-CCRI-03, the budget is EUR 47,500,000 with an indicative contribution of around EUR 9,500,000 per grant and 5 grants expected.

Application Type: The application type is a single-stage open call.

Nature of Support: Beneficiaries will receive money in the form of a lump sum grant.

Application Stages: The application process is single-stage.

Success Rates: The success rates cannot be determined from the provided text.

Co-funding Requirement: The text does not explicitly state a co-funding requirement.

Summary:

This Horizon Europe call, part of the Climate-Neutral and Smart Cities Mission, aims to introduce circular economy models in the construction sector at building, district, and city scales. The goal is to reduce GHG emissions, promote efficient resource use, and create more sustainable built environments. The call seeks proposals that develop and demonstrate tools, solutions, and business models for circular construction, including urban mining, reuse of materials, and whole life-cycle GHG emissions inventories. Projects must involve at least three cities from different EU Member States or Associated Countries, with at least one being part of the 112 cities participating in the EU Mission on Climate-Neutral and Smart Cities. The call encourages collaboration with other Horizon Europe projects and initiatives like the New European Bauhaus and the EU Circular Cities and Regions Initiative. Funding is provided as a lump sum grant, and the application process is a single-stage submission. The call is structured around three topics: HORIZON-MISS-2026-04-CIT-01, HORIZON-MISS-2026-04-CIT-02, and HORIZON-MISS-2026-04-CIT-NEB-B4P-CCRI-03, each with different budget allocations and expected number of grants. The call opens on February 4, 2026, and closes on October 8, 2026.