Novel circular business models to enable the just transition to a sustainable and circular economy

Under Destination “Circular economy and bioeconomy sectors’, R&I in 2025 provides scientific and technological support to the European Green Deal, in line with the new Commission priority on “A new plan for Europe’s sustainable prosperity and competitiveness”.

Actions focus on the implementation of a wide range of EU initiatives such as the circular economy action plan and the upcoming Circular Economy Act, the EU bioeconomy strategy and its upcoming update, the forest strategy for 2030, and the Common Agriculture Policy. In addition, this Destination contributes to the industrial strategy, the chemicals strategy for sustainability, the European Climate Law, the SME strategy, the communication on safe and sustainable by design framework, the sustainable blue economy and its offshoot initiatives, the EU biodiversity strategy for 2030, the EU Nature Restoration Regulation, the proposals for an EU forest monitoring regulation and a directive on EU soil monitoring and resilience.

The Destination also upholds the upcoming working plan for the implementation of Ecodesign for Sustainable Products Regulation and research needs identified in the Global Resources Outlook 2024. In addition, it supports the EU social economy action plan and the Council Recommendation on developing social economy framework conditions which includes social economy entities in the circular economy.

Furthermore, it will support the EU biotechnology and biomanufacturing initiative, covering and underpinning sustainable bio-based innovation systems, as well as the Commission communication “A Competitive Compass for the EU”, the upcoming strategy for European life sciences and the EU biotech act. Also, it will support the capacity of bio-based systems to enable a sustainable carbon management and allow the better understanding of the carbon removal potential of circular bio-based economies. Through innovative circular and bio-based materials, products, processes and value chains for consumers and industry, the awareness and importance of agriculture and forestry in the EU will be strengthened. The destination will align with the Global Biodiversity Framework, the future science-policy panel to further contribute to the sound management of chemicals and waste and to prevent pollution and promote the new approach for the sustainable blue economy in the EU, which stresses that marine/aquatic biotechnology offers solutions for materials, enzymes, food supplements and pharmaceuticals.

R&I activities under this Destination will help establishing healthy, biodiverse and resilient forests that are sustainably managed and able of providing a wide range of key ecosystem services, including climate mitigation through carbon removals and continuing supplying materials and services for the development of a sustainable forest bioeconomy in line with the EU forest strategy for 2030.

Proposals for topics under this destination should set out a credible pathway contributing to “achieving healthy soils and forests, as well as clean air, fresh and marine water, whilst ensuring water resilience and the transition to a clean, competitive and circular economy and sustainable bioeconomy”, and more specifically to one or more of the following impacts:

• innovative circular and bio-based materials, products, processes and value chains are developed for the consumers and industry, replacing unsustainable alternatives and leading to new and more sustainable approaches for managing waste materials and by-products, aiming at pollution prevention and remediation, and the promotion of new forms of cooperation between diverse economic and societal actors across sectors and territories;
• industry and consumers benefit from new opportunities both through sustainable novel products in line with ecodesign principles, and novel circular business models that have a mitigating impact on resource use and greenhouse gas emissions;
• innovative business and governance models, are advanced to foster safe and sustainable product design. This includes durability, reliability, reusability, upgradability, reparability, recyclability, recycled content, and circularity with a comprehensive approach addressing environmental impacts also at a territorial level and involving civil society in fostering a circular economy;
• large-scale diffusion of social and technological innovation across circular and bioeconomy sectors within planetary boundaries thanks to innovative, socially fair, climate-neutral, circular, bio-based and nature-based solutions;
• the full potential of marine and freshwater biological resources and blue biotechnology is leveraged to deliver societal benefits, such as more environment-friendly industrial products and processes, support public health and environmental conservation;
• actors in the forest sector foster the multi-functionality of forests based on the three pillars of sustainability (economic, environmental and social), enhancing a sustainable and circular bioeconomy including support to business development; restoring and protecting biodiversity and ecosystems, ensuring that ecosystem services continue to be delivered including mitigating and adapting to climate change; and delivering societal expectations including well-being of different actors.

R&I fostering circular economy and other sectors under this Destination aimed at impacting or involving civil society will take into account the participation of disadvantaged groups based on gender and other social categories as appropriate.

The Horizon Europe work programme for 2025 will play a critical role in implementing the Ecodesign for Sustainable Product Regulation (ESPR). More sustainable and circular products will contribute to the resilience and competitiveness of the EU economy. Changes in consumer behaviour and availability of attractive service solutions will lead to waste prevention and tangible reduction in material and energy consumption and greenhouse gas emissions. R&I can link various EU policies, namely those with measures to create market demand for secondary materials related to the green and digital transitions, resilience and competitiveness.

Outcomes will ensure synergies with Cluster 4 – ‘Digital, industry and Space’, its partnerships and with Cluster 5 – ‘Climate, Energy and Mobility’. Full synergy and complementarity will be ensured with the fully operational EU partnership on ‘Circular Bio-based Europe’ (CBE Joint Undertaking), the EU partnership for a climate neutral, sustainable and productive blue economy and with the EU mission ‘Restore our Ocean and Waters by 2030’, as well as with the Soil mission. Furthermore, to maximise the local impact under this destination, synergies and complementarities with the Circular Cities and Regions Initiative (CCRI) and the New European Bauhaus (NEB) Facility are encouraged as appropriate. Coordination will be ensured with the long-standing EC Knowledge Centre for Bioeconomy. Possible synergies should be sought with other JRC activities. The destination will ensure synergies and complementarities with the future European Partnership “Forests and forestry for a sustainable future”. To maximise the impacts of R&I under this Destination, international cooperation is encouraged.

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