Advancing Circular Logistics Solutions In Cities

Projects are expected to contribute to all the following outcomes:

• Accelerated transition towards circular economy in the freight transport sector and throughout the urban logistics value chain, contributing to the objectives of the Climate-neutral and Smart Cities Mission and the EU Circular Cities and Regions Initiative (CCRI);
• Increased adoption by logistics operators of new and tested circular systemic logistics solutions, including modular loading units and reusable transport packaging systems tailored for urban delivery settings;
• Improved integration of reverse logistics into urban logistics models to enable higher reuse and recycling rates;
• Optimised resource utilisation in urban logistics through innovative circular economy approaches, leading to significant reductions in material consumption and carbon footprint;
• Enhanced cooperation among urban stakeholders, including local authorities, logistics providers, retailers, and consumers, fostering circular business models and enhancing consumer acceptance.

The rapid growth of e-commerce and urban logistics has led to an increase in packaging waste, inefficiencies in freight transport, and rising environmental impacts. Current urban logistics systems often rely on disposable packaging and fragmented transport operations, resulting in significant material waste, resource inefficiency and carbon emissions. Addressing these challenges requires innovative circular economy approaches, promoting systemic, innovative, circular and scalable solutions for reducing waste generation, in line with the revised EU Packaging and Packaging Waste Regulation (PPWR)^[1], and improving resource efficiency in business-to-business and business-to-consumer logistics.

Building on previously funded projects’ outcomes and leveraging potential complementarities with existing regional circularity hubs and other initiatives (e.g. the CCRI ^[2] and its related projects ^[3], as well as the Driving Urban Transition Partnership (DUT)^[4]), proposals should address all the following actions:

• Design and develop solutions for innovative, modular, reusable, and recyclable packaging and loading units. The proposed solutions should reduce single-use packaging in urban freight transport and demonstrate the benefits of their use in urban logistics processes, while considering the impact of packaging waste regulations on logistics and delivery models in urban areas.
• Develop and test digital tools and systems for tracking and optimising the use of the loading units as well as for secure and efficient stowage, transport, and handling, by integrating technologies such as Internet of Things, edge computing, Artificial Intelligence and data-driven collaboration platforms (e.g. data spaces), considering technological sovereignty and energy-efficiency.
• Engage urban and local stakeholders, including local authorities, logistics operators, retailers and citizens, in co-designing innovative solutions to implement reusable and recyclable packaging and use parcel lockers and micro-hubs (pick-up points) for returning new items and collecting used items (for the purpose of repair, reuse, remanufacture, repurpose or recycling), thus promoting the transition to circular urban logistics in various product value chains.
• Demonstrate the proposed solutions in real-world pilots in at least two different urban environments, each pilot covering two different types of goods or more (e.g. textile apparel, consumer electronics), in cooperation with logistics service providers, cities, and e-commerce value chain actors. Pilots should also consider reverse logistics systems, and innovative return and reuse schemes.
• Explore and evaluate environmental, social, and economic (e.g. need for new business models and incentive schemes) impacts of circular economy approaches and specifically the potential of reverse logistics systems to enable circular flows of materials, reduce greenhouse gas and pollutant emissions, and support reuse schemes.
• In a co-creation process with local authorities, propose policy recommendations and guidelines to support cities in designing enabling regulatory frameworks and market incentives aligned with local circular economy goals and in integrating circular economy principles into urban logistics related policies, plans^[5] and regulations.
• Provide policy recommendations to facilitate the adoption of modular loading units and the integration of sustainable logistics measures into broader urban circular economy strategies across European cities and regions.

Collaboration with the Cities Mission Platform – through the CIVITAS initiative^[6] – and the CCRI is essential. Proposals should include appropriate provisions for activities and resources to support clustering activities and cooperation with the Cities Mission Platform, the CCRI, and the CIVITAS initiative^[7]. Proposals should also plan for an active collaboration amongst the projects selected under this topic - for dissemination, evaluation and coordination - facilitated by and within the above mentioned initiatives. Moreover, proposals are expected to ensure that their dissemination and exploitation strategies feature dedicated actions for promoting their results and lessons learned across the Cities Mission Platform, CIVITAS and CCRI websites.

This action supports the follow-up to the July 2023 Communication on EU Missions assessment^[8].

[1] Regulation - EU - 2025/40 - EN - EUR-Lex

[2] Circular Cities and Regions Initiative

[3] CCRI Projects (e.g. Rewrap: Challenging the Dominance of Single-Use Plastic Wraps | DEFINITE-CCRI)

[4] The DUT Partnership

[5] E.g. within the Sustainable urban mobility planning

[6] https://civitas.eu/

[7] The CIVITAS initiative should establish, through a collaboration agreement set up together with the Cities Mission Platform, clear links with the Mission portfolio for synergies and complementarities.

[8] COM(2023) 457 final and SWD(2023) 260 final