Demonstrators for clusters of social circular enterprises (IA)
HORIZON Innovation Actions
Basic Information
- Identifier
- HORIZON-CL4-2025-05-TWIN-TRANSITION-21-two-stage
- Programme
- INDUSTRY two-stage
- Programme Period
- 2021 - 2027
- Status
- Closed (31094503)
- Opening Date
- May 22, 2025
- Deadline
- September 23, 2025
- Deadline Model
- two-stage
- Budget
- €13,000,000
- Min Grant Amount
- €6,500,000
- Max Grant Amount
- €6,500,000
- Expected Number of Grants
- 2
- Keywords
- HORIZON-CL4-2025-05-TWIN-TRANSITION-21-two-stageHORIZON-CL4-2025-05-two-stage
Description
Social Circular Enterprises (SCEs)[1] 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. 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).
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%)[2]. On average, a circular social enterprise creates 70 jobs per 1,000 tons collected with a view of being re-used.
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[3]), 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[4] 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.[5]
[1] https://circulareconomy.europa.eu/platform/sites/default/files/social_circular_economy_2017.pdf
[2] Proximity and social economy industrial ecosystem. Annual Single Market Report 2021.
[3] https://social-economy-gateway.ec.europa.eu/about-social-economy_en
Destination & Scope
The research and innovation under this Destination will continue to support a globally competitive European industry through the twin green and digital transition. The development of new and cross-cutting technologies will boost the transformation of existing value chains and the creation of new ones.
Supporting net-zero manufacturing is a key objective of the Net-Zero Industry Act and has a crucial role to play in the transition towards a green and sustainable society, going from ‘smart factory’ to a ‘smart sustainable value chain’. Smart manufacturing will help develop the materials and products needed to support net-zero and less polluting industries. There is much scope for improvement in circularity technologies applicable to different value chains, with special attention needed for product design, re-use, disassembly, remanufacturing/upgrading, recycling, and ‘Zero-X’ – zero defects, zero breakdowns and zero waste.
Digital technologies, like big data, advanced computing, and networking (including quantum), AI, robotics, photonics and the industrial virtual worlds will transform the practices of research, design and engineering, with better performing net-zero solutions and increased productivity in all sectors. Quick-response services can support hyperflexible production using, e.g. trustworthy AI and digital twins, with digitally enabled certification and qualification of processes and products.
In addition to decarbonisation, energy-intensive industries need to embrace the circular economy as a key pillar in the design of their value chains. This will be fundamental to their resource efficiency (in terms of materials, energy and water). Particularly important in this context is the innovative upcycling of secondary raw materials and waste and the development of sustainable and resource-efficient industrial processes.
The EU has set an ambitious goal for Europe to become the first climate-neutral continent by 2050. In some areas the key solutions for achieving significant reductions in emissions are already in the market. In crucial parts of the economy, as is the case for energy-intensive industries, many of the tools needed for such a significant reduction are still at an earlier stage of industrial or commercial development.
Further development and deployment of technologies identified in the ERA (European Research Area) industrial technology roadmaps for circular technologies and for low-carbon technologies will be essential to achieve this goal. Manufacturing processes, supply chains, cyber-physical systems or cities will become more climate neutral and less polluting, and circular solutions will include AI and digital twins, and the deployment of common European data spaces like those under the Digital Europe Programme.
Across industries, the human dimension (including gender differences) will be stressed via the Industry 5.0 paradigm.
To successfully move from innovation to deployment, a more effective transfer from small-scale industrial demonstrators to first-of-a-kind climate-neutral demonstrators is needed.
Business cases and exploitation strategies for industrialisation:
This section applies only to those topics in this Destination, for which proposals should demonstrate the expected outcomes by including a business case and exploitation strategy for industrialisation.
A business case and a credible initial exploitation strategy are essential components in the ultimate success of an industry-based project, as well as its prospects to attract further investments for deployment. They will both be decisive factors under the impact criterion, and proposers are encouraged to use the extended page limit to present a carefully considered business case and exploitation strategy, backed by the management of the companies involved.
The business case should demonstrate the expected impact of the proposal in terms of enhanced market opportunities for the participants and deployment in the EU, in the short to medium term. It should describe the targeted market(s); estimated market size in the EU and globally; user and customer needs; and demonstrate that the solutions will match the market and user needs in a cost-effective manner; and describe the expected market position and competitive advantage.
The exploitation strategy should identify obstacles, requirements and necessary actions involved in reaching higher TRLs (Technology Readiness Levels), for example: securing the required investments, including through possible synergies with other programmes; accessing the required skills; matching value chains; enhancing product robustness; securing industrial integrators; and user acceptance.
For TRLs 6 and 7, a credible strategy to achieve future full-scale deployment in the EU is expected, indicating the intentions of the industrial partners after the end of the project.
Where relevant, in the context of skills, it is recommended to develop training material to endow workers with the right skillset in order to support the uptake and deployment of new innovative products, services, and processes developed in the different projects. This material should be tested and be scalable, and can potentially be up-scaled through the European Social Fund Plus (ESF+). This will help the European labour force to close the skill gaps in the relevant sectors and occupational groups and improve employment and social levels across the EU and associated countries.
For topics in this destination, consortia (if selected for funding) could consider voluntary contributions in terms of data, indicators and knowledge to relevant Joint Research Centre (JRC) platforms for capitalising the knowledge developed in their projects and become more policy relevant:
- INnovation Centre for Industrial Transformation and Emissions (INCITE) (https://innovation-centre-for-industrial-transformation.ec.europa.eu/).
- The Energy and Industry Geography Lab: EIGL (https://energy-industry-geolab.jrc.ec.europa.eu/).
Innovation Actions — Legal entities established in China are not eligible to participate in Innovation Actions in any capacity. Please refer to the Annex B of the General Annexes of this Work Programme for further details.
Eligibility & Conditions
General conditions
1. Admissibility Conditions: Proposal page limit and layout
Applicants submitting a proposal under the blind evaluation pilot (see General Annex F) must not disclose their organisation names, acronyms, logos nor names of personnel in the proposal abstract and Part B of their first-stage application (see General Annex E).
2. Eligible Countries
described in Annex B of the Work Programme General Annexes.
A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects. See the information in the Horizon Europe Programme Guide.
3. Other Eligible Conditions
described in Annex B of the Work Programme General Annexes.
4. Financial and operational capacity and exclusion
described in Annex C of the Work Programme General Annexes.
5a. Evaluation and award: Award criteria, scoring and thresholds
This topic is part of the blind evaluation pilot under which first stage proposals will be evaluated blindly.
are described in Annex D of the Work Programme General Annexes.
5b. Evaluation and award: Submission and evaluation processes
are described in Annex F of the Work Programme General Annexes and the Online Manual.
5c. Evaluation and award: Indicative timeline for evaluation and grant agreement
described in Annex F of the Work Programme General Annexes.
6. Legal and financial set-up of the grants
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) [[This decision is available on the Funding and Tenders Portal, in the reference documents section for Horizon Europe, under ‘Simplified costs decisions’ or through this link: https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/guidance/ls-decision_he_en.pdf]].
described in Annex G of the Work Programme General Annexes.
Specific conditions
described in the [specific topic of the Work Programme]
Application and evaluation forms and model grant agreement (MGA):
Application form templates — the application form specific to this call is available in the Submission System
Standard application form (HE RIA IA Stage 1 BLIND)
Standard application form (HE RIA IA Stage 1)
Evaluation form templates — will be used with the necessary adaptations
Standard evaluation form (HE RIA, IA and CSA Stage 1 BLIND)
Standard evaluation form (HE RIA, IA and CSA Stage 1)
Guidance
Model Grant Agreements (MGA)
Call-specific instructions
Information on financial support to third parties (HE)
Additional documents:
HE Main Work Programme 2025 – 1. General Introduction
HE Main Work Programme 2025 – 7. Digital, Industry and Space
HE Main Work Programme 2025 – 14. General Annexes
HE Framework Programme 2021/695
HE Specific Programme Decision 2021/764
EU Financial Regulation 2024/2509
Decision authorising the use of lump sum contributions under the Horizon Europe Programme
Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment
EU Grants AGA — Annotated Model Grant Agreement
Funding & Tenders Portal Online Manual
Support & Resources
Online Manual is your guide on the procedures from proposal submission to managing your grant.
Horizon Europe Programme Guide contains the detailed guidance to the structure, budget and political priorities of Horizon Europe.
Funding & Tenders Portal FAQ – find the answers to most frequently asked questions on submission of proposals, evaluation and grant management.
Research Enquiry Service – ask questions about any aspect of European research in general and the EU Research Framework Programmes in particular.
National Contact Points (NCPs) – get guidance, practical information and assistance on participation in Horizon Europe. There are also NCPs in many non-EU and non-associated countries (‘third-countries’).
Enterprise Europe Network – contact your EEN national contact for advice to businesses with special focus on SMEs. The support includes guidance on the EU research funding.
IT Helpdesk – contact the Funding & Tenders Portal IT helpdesk for questions such as forgotten passwords, access rights and roles, technical aspects of submission of proposals, etc.
European IPR Helpdesk assists you on intellectual property issues.
CEN-CENELEC Research Helpdesk and ETSI Research Helpdesk – the European Standards Organisations advise you how to tackle standardisation in your project proposal.
The European Charter for Researchers and the Code of Conduct for their recruitment – consult the general principles and requirements specifying the roles, responsibilities and entitlements of researchers, employers and funders of researchers.
Partner Search help you find a partner organisation for your proposal.
Latest Updates
CALL UPDATE: PROPOSAL NUMBERS
PROPOSAL NUMBERS
Call HORIZON-CL4-2025-05-two-stage_stage1 has closed on the 23/09/2025.
243 proposals have been submitted.
The breakdown per topic is:
Topic ID | Topic title | Action type | Proposals submitted |
HORIZON-CL4-2025-05-TWIN-TRANSITION-11-two-stage | Enhanced logistics and operations of construction sites (IA) | IA | 40 |
HORIZON-CL4-2025-05-TWIN-TRANSITION-21-two-stage | Demonstrators for clusters of social circular enterprises (IA) | IA | 8 |
HORIZON-CL4-2025-05-TWIN-TRANSITION-35-two-stage | Developing and embedding upcycling technologies into viable business (Processes4Planet partnership) (IA) | IA | 70 |
HORIZON-CL4-2025-05-MATERIALS-42-two-stage | Innovative Advanced Materials (IAMs) for product monitoring, smart maintenance and repair strategies in the construction sector (RIA) (Innovative Advanced Materials for Europe partnership) | RIA | 54 |
HORIZON-CL4-2025-05-MATERIALS-43-two-stage | Innovative Advanced Materials (IAMs) for robust, fast curing sealants and coatings for manufacturing and final assembly (IA) (Innovative Advanced Materials for Europe partnership) | IA | 42 |
HORIZON-CL4-2025-05-MATERIALS-51-two-stage | Development of safe and sustainable by design alternatives to Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS) (IA) | IA | 29 |
Total: | 243 | ||
Evaluation results are expected to be communicated around 3rd week of December 2025.
A.R.
On Business case and exploitation strategy
Requirement to include Business case and exploitation strategy is applicable only to 2nd stage full applications.
Reminder on proposal part B page limit and formatting conditions
1.Proposal part B page limit
Page limit: The page limit is 10 pages.
The page limit will be applied automatically. At the end of a proposal part B template inside the Submission System you can see the structure of the actual proposal that you need to submit, please remove all instruction pages that are watermarked.
If you attempt to upload a proposal longer than the specified limit before the deadline, you will receive an automatic warning and will be advised to shorten and re-upload the proposal. After the deadline, excess pages (in over-long proposals/applications) will be automatically made invisible, and will not be taken into consideration by the experts. The proposal is a self-contained document. Experts will be instructed to ignore hyperlinks to information that is specifically designed to expand the proposal, thus circumventing the page limit.
Please, do not consider the page limit as a target! It is in your interest to keep your text as concise as possible, since experts rarely view unnecessarily long proposals in a positive light.
2.Proposal part B formatting conditions
The following formatting conditions apply (as listed in a proposal part B template inside the Submission System) and will be checked by the Agency during an admissibility check of submitted proposals.
The reference font for the body text of proposals is Times New Roman (Windows platforms), Times/Times New Roman (Apple platforms) or Nimbus Roman No. 9 L (Linux distributions).
The use of a different font for the body text is not advised and is subject to the cumulative conditions that the font is legible and that its use does not significantly shorten the representation of the proposal in number of pages compared to using the reference font (for example with a view to bypass the page limit).
The minimum font size allowed is 11 points. Standard character spacing and a minimum of single line spacing is to be used. This applies to the body text, including text in tables.
Text elements other than the body text, such as headers, foot/end notes, captions, formula's, may deviate, but must be legible.
The page size is A4, and all margins (top, bottom, left, right) should be at least 15 mm (not including any footers or headers).
Proposal part B template inside the Submission System document is tagged. Do not delete the tags; they are needed for our internal processing of information, mostly for statistical gathering. In that light, please do not move, delete, re-order, alter tags in any way, as they might create problems in our internal processing tools. Tags do not affect or influence the outcome of your application.
Please note that due to a technical issue, during the first days of publication of this call, the topic page did not display the description of the corresponding destination. This problem is now solved. In addition to the information published in the topic page, you can always find a full description of destinations:
* destination 1: Achieving global leadership in climate-neutral, circular and digitised industrial and digital value chains;
* destination 2: Achieving technological leadership for Europe's open strategic autonomy in raw materials, chemicals and innovative materials,
that are relevant for the call in the Work Programme 2025 part for “Industry”. Please select from the work programme the destination relevant to your topic and take into account the description and expected impacts of that destination for the preparation of your proposal.