Open Topic: Innovative solutions for the sustainable and circular transformation of SMEs

The Horizon Europe grant opportunity focuses on promoting the sustainable and circular transformation of small and medium-sized enterprises (SMEs) through innovative solutions. The main objectives align with the EU's climate neutrality goals and initiatives such as the Circular Economy Action Plan, the Zero Pollution Action Plan, and the EU Biodiversity Strategy. The program aims to support SMEs in overcoming barriers to the green transition, enhancing their environmental performance, and facilitating the adoption of sustainable practices.

Eligible applicants include SMEs, SME associations, research institutes, non-governmental organizations (NGOs), and possibly other stakeholders from EU Member States and Associated Countries, although provisions exist for broader participation. The funding type is primarily a grant, classified under Horizon Europe Innovation Actions. Proposals are encouraged to take the form of consortia that incorporate diverse partnerships, although this may not be strictly mandatory.

The grant targets specific sectors such as the circular economy, bioeconomy, and related environmental and industrial sectors. Projects should focus on innovative product development, processes, and value chains that contribute to climate change mitigation, pollution reduction, and enhancement of biodiversity while implementing EU policy requirements.

The expected project stages include development, validation, and demonstration of innovative solutions that can achieve tangible impacts in operational environments. The indicative funding amounts have not been explicitly specified but are often in the range of €5 million to €7 million per project, depending on the specific topic.

The application process is structured as a two-stage open call, requiring an initial outline submission followed by a full project proposal. Successful projects must demonstrate feasibility, technical and environmental performance, and the potential for scalability and transferability. A co-funding requirement is implied, as pooling resources from national programs is encouraged.

The evaluation process includes a blind evaluation pilot to ensure objectivity, with specific criteria outlined in the program documentation. The application must adhere to established guidelines, including admitted country eligibility and project specifications.

In summary, this grant opportunity aims to empower SMEs by funding innovative solutions that promote sustainable practices within the framework of EU environmental policy, fostering collaboration and addressing challenges in the transition to a green economy. Interested applicants are encouraged to engage with various support resources and align with broader EU strategies to maximize the impact of their proposals.

This is a Horizon Europe call for proposals under Cluster 6, specifically targeting innovative solutions for the sustainable and circular transformation of SMEs. The call is structured as a two-stage process. The overall objective is to align with the EU's climate neutrality goals for 2050, the Circular Economy Action Plan (CEAP), the Zero Pollution Action Plan, the EU Biodiversity Strategy, and the EU Industrial Strategy. Successful proposals are expected to contribute to the destination's impacts related to innovative circular and bio-based materials, products, processes, value chains, and business/governance models that reduce resource consumption and environmental impact.

The expected outcomes of funded projects include equipping SMEs to overcome barriers in the green transition, implementing EU policy requirements for climate change mitigation, reducing pollution, protecting and restoring biodiversity, and promoting sustainable use of ecosystem services. The call also aims to increase the engagement of SMEs in sustainable business and management practices, improve their environmental performance, and foster the development and adoption of innovative circular and bio-based solutions.

The scope of the call encourages proposals to address both common and emerging challenges to the green transition of SMEs through innovative and disruptive solutions. Proposals should identify and analyze key barriers to the sustainable and circular transition and develop and demonstrate innovative solutions. If proposals relate to topics covered by previous Horizon Europe calls on circular economy and bioeconomy sectors (2021-2022 or 2023-2024), they must convincingly explain how they build upon and do not duplicate those efforts.

Solutions can encompass innovative products, processes, services, plans, and arrangements, including new business models (e.g., regenerative), collaborative governance approaches, tailored transformation plans, metrics and indicators, and environmental management tools. The call also encourages the use of digital solutions such as Digital Product Passports (DPP), Artificial Intelligence (AI), and AI assistants enabled by Generative AI. Proposals should analyze required skills and include skill development activities for SME employees.

Proposals must demonstrate the feasibility (economic, technical), environmental performance, utility, and transferability of the developed solutions, particularly in addressing climate change mitigation, biodiversity, and environmental remediation. Demonstrations should occur in large-scale operational environments with strong SME involvement. Initial deployment and validation can be at territorial, sectoral, or value chain levels, but solutions must be transferable and replicable in other contexts.

Successful proposals should align with EU policies for the green transformation of SMEs, national or regional strategies, and business partner demands. Solutions should be concrete and user-friendly to minimize administrative burdens for SMEs, considering legislation like the Corporate Sustainability Reporting Directive (CSRD), Ecodesign for Sustainable Products Regulation (ESPR), Green Claims Directive, Eco-Management and Audit Scheme (EMAS), EU taxonomy, best available techniques standards, and Digital Product Passports (DPP). Proposals should also develop policy recommendations to support the widespread adoption of validated solutions and the use of new knowledge in regulatory frameworks.

Proposals should build on achievements from previous national or EU-funded projects and collaborate with organizations like the Enterprise Europe Network, Innovation Centre for Industrial Transformation and Emissions (INCITE), and the EU Pact for Skills initiative. Participation of SMEs or SME associations in consortia is expected. Engagement of NGOs, small-scale initiatives, and industry associations is encouraged.

The call includes a blind evaluation pilot, requiring applicants to anonymize their proposals during the first stage of evaluation.

The general conditions for admissibility, eligibility, financial and operational capacity, and exclusion are detailed in the Horizon Europe Work Programme General Annexes. Proposal page limits and layout are described in Part B of the Application Form available in the Submission System. Eligible countries are listed 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.

The evaluation process and award criteria are described in Annexes D and F of the Work Programme General Annexes and the Online Manual. The indicative timeline for evaluation and grant agreement is described in Annex F. Legal and financial aspects are covered in Annex G of the Work Programme General Annexes.

Application forms, evaluation forms, model grant agreements, and guidance documents are available in the Submission System and through links provided in the call documentation. Additional documents include the Horizon Europe Main Work Programme 2025 sections on general introduction, food, bioeconomy, natural resources, agriculture and environment, and general annexes, as well as the Horizon Europe Programme Guide, Framework Programme, Specific Programme Decision, EU Financial Regulation, rules for legal entity validation, and the EU Grants AGA.

The budget overview for 2025 includes several topics: HORIZON-CL6-2025-01-BIODIV-01-two-stage and HORIZON-CL6-2025-01-BIODIV-02-two-stage, both with a budget of EUR 14,000,000 each, and HORIZON-CL6-2025-01-CIRCBIO-01-two-stage and HORIZON-CL6-2025-01-ZEROPOLLUTION-01-two-stage, each with a budget of EUR 10,000,000. All topics follow a two-stage submission process, with opening dates on May 6, 2025, and deadlines on September 4, 2025, and February 18, 2026.

The call encourages partner searches and provides links to the Electronic Submission Service and relevant support resources, including 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, and CEN-CENELEC/ETSI Research Helpdesks.

In summary, this Horizon Europe call aims to foster the green transition of SMEs by funding innovative solutions that address key challenges in circular economy, bioeconomy, and zero pollution. It emphasizes collaboration, skills development, policy alignment, and the practical implementation of sustainable practices within SMEs, contributing to broader EU environmental and climate objectives.

Eligible Applicant Types: The primary target applicants are SMEs (Small and Medium-sized Enterprises) and SME associations. The engagement of non-governmental organizations, small-scale initiatives, and suitable industry or industry associations is also encouraged. While not explicitly stated, the general conditions mention eligibility for non-EU/non-Associated Countries, suggesting a broader scope of potential applicants.

Funding Type: The primary funding type is a grant, specifically through HORIZON Innovation Actions (HORIZON-IA) and HORIZON Research and Innovation Actions (HORIZON-RIA) under the Horizon Europe program. The Model Grant Agreement (MGA) is a HORIZON Action Grant Budget-Based [HORIZON-AG].

Consortium Requirement: The opportunity encourages participation in consortia, especially with SMEs or SME associations. While not explicitly mandatory, the text suggests that a consortium approach is preferred to ensure applicability and dissemination of results.

Beneficiary Scope (Geographic Eligibility): The primary geographic eligibility appears to be EU member states and associated countries within the Horizon Europe program. However, the documentation mentions that non-EU/non-Associated Countries may also be eligible, contingent on specific provisions and funding availability as outlined in the Horizon Europe Programme Guide.

Target Sector: This program targets the following sectors: circular economy, bioeconomy, environment, climate, and industrial sectors. Specifically, it focuses on the green transition of SMEs, innovative circular and bio-based materials, products, processes, and value chains. It also addresses challenges related to climate change mitigation, biodiversity, environmental remediation, and pollution reduction.

Mentioned Countries: The opportunity explicitly mentions EU member states and non-EU/non-Associated Countries.

Project Stage: The expected project stage ranges from development and demonstration to validation and first deployment. The focus is on demonstrating the feasibility, environmental performance, utility, and transferability of innovative solutions in a large-scale operational environment, with the goal of broader replication.

Funding Amount: The funding amounts vary depending on the specific topic. For HORIZON-RIA actions (BIODIV topics), the budget is EUR 14,000,000 with an indicative grant amount of around EUR 7,000,000 per project. For HORIZON-IA actions (CIRCBIO and ZEROPOLLUTION topics), the budget is EUR 10,000,000 with an indicative grant amount of around EUR 5,000,000 per project.

Application Type: The application type is an open call with a two-stage submission process.

Nature of Support: Beneficiaries will receive money in the form of grants to support their projects.

Application Stages: The application process involves two stages.

Success Rates: The success rates are not explicitly stated, but the indicative number of grants for each topic suggests a competitive environment.

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

Summary:

This Horizon Europe funding opportunity aims to support the green transition of SMEs by providing grants for innovative projects in the circular economy, bioeconomy, and environmental sectors. The program seeks to address challenges related to climate change, biodiversity, pollution, and resource consumption, aligning with the EU's climate neutrality objectives. Eligible applicants include SMEs, SME associations, and potentially non-EU entities, who are encouraged to form consortia. Projects should focus on developing and demonstrating feasible, sustainable, and transferable solutions that can be deployed in real-world settings. The application process is a two-stage open call, and successful projects will contribute to the broader adoption of sustainable business practices and the implementation of relevant EU policies. The funding is provided through HORIZON Innovation Actions and HORIZON Research and Innovation Actions, with indicative grant amounts ranging from EUR 5,000,000 to EUR 7,000,000 per project, depending on the specific topic.