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Call key data
Demonstrators for clusters of social circular enterprises
Funding Program
Horizon Europe: Cluster 4 - Digital, Industry and Space
Call number
HORIZON-CL4-2025-05-TWIN-TRANSITION-21-two-stage
deadlines
Opening
22.05.2025
Deadline
23.09.2025 17:00
Funding rate
70%
Call budget
€ 10,000,000.00
Estimated EU contribution per project
€ 5,000,000.00
Link to the call
Link to the submission
Call content
short description
Social Circular Enterprises (SCEs) need to adapt to new market realities in the circular economy, driven by the search for new market opportunities (e.g. secondary raw materials market, business models addressing change in consumption awareness, and technological developments improving productivity). To achieve this adaptation, investment in R&D capacity and technology for SCEs is essential.
Call objectives
Social Circular Enterprises (SCEs) have been pioneers in the circular economy since decades. They are active in all stages of the circular economy and deal with various waste stream. SCEs are also known to offer new and innovative circular business models and brining new circular services and products to the market. In the last decade SCE also entered the market of secondary raw materials by collecting and dissembling various products and goods. The majority of SCEs are SMEs and offer local employment opportunities to vulnerable groups (99%). On average, a circular social enterprise creates 70 jobs per 1,000 tons collected with a view of being re-used.
Expected effects and impacts
Projects are expected to research and develop a replicable tech-oriented demonstrator(s) within social circular clusters. Within a demonstrator, partners are expected to jointly adapt, design, test and implement relevant technology solutions. The following specific activities are expected within demonstrators:
- The demonstrators are supposed to organise as a Social Circular Tech Cluster allowing to pool resources and adapt, develop and test technology solutions. This will facilitate more business opportunities (tech based spin-offs) and sharing of expertise with relevant industries.
- A demonstrator consortium should be active in at least two Member States or Associated Countries and can choose to focus on textile and construction waste or WEEE. Each demonstrator consortium exists out of two or more clusters, each grouping individual SCEs (ideally with different degrees of maturity), for-profit circular companies (e.g. sectoral peers in secondary raw materials industries), research, and tech centres able to support SCE with relevant technology and research capacity. SCEs should form the core of the consortia, and should benefit directly from the interventions to improve their triple impact model. Public authorities and SCE federations could engage where appropriate. Demonstrator consortia should to be transnational in order to compare pilots in different markets.
- Adapting, designing and developing technologies in SCEs needs should focus on optimising efficiency in management and processing of waste streams and enlarge the potential market activity of SCEs in the circular economy (WEEE, textiles and construction focus). Relevant technologies should improve the productivity and innovation capacity within SCE and consequently the market position in the secondary raw materials markets. Technologies can include data driven technologies such as AI to improve sorting knowledge and decision making (screening based on automated recognition with cost-benefit analysis), software to standardise repair operations and instructions, improve stocks management and increase reuse sales by optimising the pricing system (e.g. automated value calculation of incoming materials and goods), digital modelling tools (including material passport), etc.
- Research could also include the potential of assistive technologies to support employees (mostly persons with disabilities, specific impairments, or social disadvantages) in SCE in order to improve their productivity and wellbeing.
- Market research focussing on improving the position of SCE as an attractive partner in management and processing of waste streams (in terms of textile, WEEE and construction materials) with most potential for growth in B2B markets. For example focussing on collection, disassembly, sorting, purification, concentration, recycling, exchanging or preparation, for the valorisation of waste to be used as feedstock for other plants and companies across sectors and/or across value chains. This market research can include specific sectoral assessment of economic potential for most labour-intensive circular activities.
- By organising through clusters, demonstrators are motivated to develop shared engineering activities (labs, strategies and shared technology) to make technology accessible for enterprises with less capacity and resources and to reduce overall costs for individual SCEs.
- Where relevant, proposals are encouraged to build on, or seek collaboration with, existing projects and develop synergies with other relevant European, national or regional initiatives and funding programmes. In particular, the project could build further on relevant knowledge, tools, methods and technology developed and applied within existing H4C (Clusters for Circularity) and its knowledge platform.
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Expected results
Besides further developing its offer towards consumers, SCEs are increasingly focussing their activities towards B2B markets, such as for secondary raw materials. In that regard, SCEs started to explore the growing and labour-intensive market of sorting, recycling and upcycling services for other businesses. Research and innovation can accelerate this potential and is most needed in the area to remain competitive. Moreover, research and innovation in this sector can lever potentials beyond productivity and competitiveness, as SCEs pursue a triple impact: economic, green (contribute to a circular and resource efficient economy) and social (employment of vulnerable groups).
The following outcomes are expected for SCEs and wider circular networks:
- Improve the uptake and scale of technology solutions in individual SCE and promote shared technology development and engineering through SCE clusters.
- Improve competitiveness through enhanced productivity, as well as new market opportunities, for SCEs related to specific waste streams with potential for competitive advantages, such as, textiles, WEEE (waste electrical and electronic equipment) and construction materials;
- Prove technical, economic, and environmental excellence of SCE in (local) circular value chains (e.g. I-US) leading to increased collaboration with (mainstream / for profit) industrial partners;
- Contribute to the reduction of non-recyclable waste generated in the region/area of the cluster by contributing to the re-using and transforming waste, by-products, and side-streams into new/secondary resources of raw materials;
- Increase employment of persons with a distance to the labour market in SCE and improve their labour productivity, for example by using assistive technology in the work process and use of data (e.g. AI trained assessment and instructions).
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Eligibility Criteria
Regions / countries for funding
Moldova (Moldova), Albania (Shqipëria), Armenia (Հայաստան), Bosnia and Herzegovina (Bosna i Hercegovina / Босна и Херцеговина), Canada, Faeroes (Føroyar / Færøerne), Georgia (საქართველო), Iceland (Ísland), Israel (ישראל / إِسْرَائِيل), Kosovo (Kosova/Kosovë / Косово), Montenegro (Црна Гора), New Zealand (Aotearoa), North Macedonia (Северна Македонија), Norway (Norge), Serbia (Srbija/Сpбија), Tunisia (تونس /Tūnis), Türkiye, Ukraine (Україна), United Kingdom
eligible entities
EU Body, Education and training institution, Non-Profit Organisation (NPO) / Non-Governmental Organisation (NGO), Other, Private institution, incl. private company (private for profit), Public Body (national, regional and local; incl. EGTCs), Research Institution incl. University, Small and medium-sized enterprise (SME)
Mandatory partnership
Yes
Project Partnership
To be eligible for funding, applicants must be established in one of the following countries:
- the Member States of the European Union, including their outermost regions
- the Overseas Countries and Territories (OCTs) linked to the Member States
- countries associated to Horizon Europe - see list of particpating countries
Only legal entities forming a consortium are eligible to participate in actions provided that the consortium includes, as beneficiaries, three legal entities independent from each other and each established in a different country as follows:
- at least one independent legal entity established in a Member State; and
- at least two other independent legal entities, each established in different Member States or Associated Countries.
Any legal entity, regardless of its place of establishment, including legal entities from non-associated third countries or international organisations (including international European research organisations) is eligible to participate (whether it is eligible for funding or not), provided that the conditions laid down in the Horizon Europe Regulation have been met, along with any other conditions laid down in the specific call topic.
A ‘legal entity’ means any natural or legal person created and recognised as such under national law, EU law or international law, which has legal personality and which may, acting in its own name, exercise rights and be subject to obligations, or an entity without legal personality.
other eligibility criteria
Specific cases:
- Affiliated entities (i.e. entities with a legal or capital link to a beneficiary which participate in the action with similar rights and obligations to the beneficiaries, but which do not sign the grant agreement and therefore do not become beneficiaries themselves) are allowed, if they are eligible for participation and funding.
- Associated partners (i.e. entities which participate in the action without signing the grant agreement, and without the right to charge costs or claim contributions) are allowed, subject to any conditions regarding associated partners set out in the specific call conditions.
- Entities which do not have legal personality under their national law may exceptionally participate, provided that their representatives have the capacity to undertake legal obligations on their behalf, and offer guarantees to protect the EU’s financial interests equivalent to those offered by legal persons.
- Legal entities created under EU law (EU bodies) including decentralised agencies may be part of the consortium, unless provided for otherwise in their basic act.
- International European research organisations are eligible to receive funding. International organisations with headquarters in a Member State or Associated Country are eligible to receive funding for ‘Training and mobility’ actions or when provided for in the specific call/topic conditions. Other international organisations are not eligible to receive funding, unless provided for in the specific call/topic conditions, or if their participation is considered essential for implementing the action by the granting authority.
- Joint Research Centre (JRC)— Where provided for in the specific call conditions, applicants may include in their proposals the possible contribution of the JRC but the JRC will not participate in the preparation and submission of the proposal. Applicants will indicate the contribution that the JRC could bring to the project based on the scope of the topic text. After the evaluation process, the JRC and the consortium selected for funding may come to an agreement on the specific terms of the participation of the JRC. If an agreement is found, the JRC may accede to the grant agreement as beneficiary requesting zero funding or participate as an associated partner, and would accede to the consortium as a member.
- Associations and interest groupings — Entities composed of members (e.g. European research infrastructure consortia (ERICs)) may participate as ‘sole beneficiaries’ or ‘beneficiaries without legal personality’. However, if the action is in practice implemented by the individual members, those members should also participate (either as beneficiaries or as affiliated entities, otherwise their costs will NOT be eligible.
- EU restrictive measures — Entities subject to EU restrictive measures under Article 29 of the Treaty on the European Union (TEU) and Article 215 of the Treaty on the Functioning of the EU (TFEU) as well as Article 75 TFEU, are not eligible to participate in any capacity, including as beneficiaries, affiliated entities, associated partners, third parties giving in-kind contributions, subcontractors or recipients of financial support to third parties (if any).
- Legal entities established in Russia, Belarus, or in non-government controlled territories of Ukraine — Given the illegal invasion of Ukraine by Russia and the involvement of Belarus, there is currently no appropriate context allowing the implementation of the actions foreseen in this programme with legal entities established in Russia, Belarus, or in non-government controlled territories of Ukraine. Therefore, even where such entities are not subject to EU restrictive measures, such legal entities are not eligible to participate in any capacity. This includes participation as beneficiaries, affiliated entities, associated partners, third parties giving in-kind contributions, subcontractors or recipients of financial support to third parties (if any). Exceptions may be granted on a case-by-case basis for justified reasons.
With specific regard to measures addressed to Russia, following the adoption of the Council Regulation (EU) 2024/1745 of 24 June 2024 (amending Council Regulation (EU) No 833/2014 of 31 July 2014) concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine, legal entities established outside Russia but whose proprietary rights are directly or indirectly owned for more than 50% by a legal person, entity or body established in Russia are also not eligible to participate in any capacity. - Measures for the protection of the Union budget against breaches of the principles of the rule of law in Hungary — Following the Council Implementing Decision (EU) 2022/2506, as of 16 December 2022, no legal commitments can be entered into with Hungarian public interest trusts established under the Hungarian Act IX of 2021 or any entity they maintain. Affected entities may continue to apply to calls for proposals and can participate without receiving EU funding, as associated partners, if allowed by the call conditions. However, as long as the Council measures are not lifted, such entities are not eligible to participate in any funded role (beneficiaries, affiliated entities, subcontractors, recipients of financial support to third parties, etc.).In case of multi-beneficiary grant calls, applicants will be invited to remove or replace that entity in any funded role and/or to change its status into associated partner. Tasks and budget may be redistributed accordingly.
Additional information
Topics
Relevance for EU Macro-Region
EUSAIR - EU Strategy for the Adriatic and Ionian Region, EUSALP - EU Strategy for the Alpine Space, EUSBSR - EU Strategy for the Baltic Sea Region, EUSDR - EU Strategy for the Danube Region
UN Sustainable Development Goals (UN-SDGs)
Additional Information
Applications must be submitted electronically via the Funders & Tenders Portal electronic submission system (accessible via the topic page in the Search Funding & Tenders section). Paper submissions are NOT possible.
Applications must be submitted using the forms provided inside the electronic submission system (not the templates available on the topic page, which are only for information). The structure and presentation must correspond to the instructions given in the forms.
Applications must be complete and contain all parts and mandatory annexes and supporting documents.
The application form will have two parts:
- Part A (to be filled in directly online) contains administrative information about the applicant organisations (future coordinator and beneficiaries and affiliated entities), the summarised budget for the proposal and call-specific questions;
- Part B (to be downloaded from the Portal submission system, completed and then assembled and re-uploaded as a PDF in the system) contains the technical description of the project.
Annexes and supporting documents will be directly available in the submission system and must be uploaded as PDF files (or other formats allowed by the system).
The page limit for the Part B for the first stage of the 2-stage call is 10 pages.
This topic is part of the blind evaluation pilot under which first stage proposals will be evaluated blindly. Applicants submitting a proposal under the blind evaluation pilot must not disclose their organisation names, acronyms, logos nor names of personnel in the proposal abstract and Part B of their first-stage application.
Eligible costs will take the form of a lump sum as defined in the Decision of 7 July 2021 authorising the use of lump sum contributions under the Horizon Europe Programme – the Framework Programme for Research and Innovation (2021-2027) – and in actions under the Research and Training Programme of the European Atomic Energy Community (2021-2025). It is mandatory to submit a detailed budget table using the template available in the Submission system.
Activities are expected to achieve TRL 6-7 by the end of the project.
Call documents
Horizon Europe Work Programme 2025 Cluster 4 - Digital, Industry and SpaceHorizon Europe Work Programme 2025 Cluster 4 - Digital, Industry and Space(kB)
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