Expected outcomes: 

• Empowered SMEs: SMEs should be equipped to overcome key barriers in the green transition and meet EU policy requirements related to climate change, pollution reduction, biodiversity protection, and sustainable ecosystem use. 

• Wider adoption of circular practices: A significant increase in SMEs engaging in sustainable business and management practices, offering circular and bio-based products, processes, or services.

• Diffusion of circular models: Proven circular business practices should be taken up and replicated across sectors and regions.

• New job opportunities: (Re-)skilling programs and employment growth in areas like reuse, repair, refurbishment, remanufacturing, and repurposing.

• Sustainable consumption: Consumers gain access to circular products and services that reduce environmental impact and promote biodiversity.

• Business transformation: Economic operators receive actionable recommendations and examples for implementing circular business models.

Scope: 

Projects should tackle both common and emerging challenges in the green and circular transformation of SMEs through innovative, disruptive, and sustainable solutions. Specifically, proposals are expected to:

• Identify and analyse key barriers to circularity and sustainability for SMEs;

• Develop and demonstrate solutions such as:

  - Regenerative business models

  - Collaborative governance structures

  - Tailored transformation plans

  - Metrics and indicators for environmental performance

  - Digital tools like AI, digital product passports (DPP), and generative assistants;

• Include skill development activities for current and future SME employees;
• Demonstrate feasibility and transferability of solutions in large-scale operational environments;
• Align with EU policies like CSRD, ESPR, EMAS, and the Green Claims Directive;
• Generate policy recommendations to support broader adoption and regulatory updates;
• Engage SMEs and SME associations directly in consortia to ensure relevance and impact.

In total, two projects will be funded, with the European Union providing the funding.

Budget per project: Around € 5.000.000,00

Call deadline: 4 September 2025/ 18 February 2026, 17.00 CET

Funding rate 

• IA: 70% (100% non-profit) - TRL 6-7