Circular Economy

Support for production reconversion aimed at better resource use

Circular Economy is an incentive program that promotes the transformation of production activities toward a model that preserves the value of products, materials and resources for as long as possible while minimizing waste generation.

The measure was launched by the Ministry of Economic Development and is managed by Invitalia, the National Development Agency owned by the Ministry of Economy. Invitalia aims to support the country’s economic growth by focusing on strategic sectors for development and employment. It is also actively involved in revitalizing crisis areas, with a strong focus on Southern Italy.

Projects must aim at the productive reconversion of economic activities within the circular economy, in one or more of the following areas:

  • Product and process innovations related to efficient resource use and waste treatment and transformation
  • Design and prototyping of integrated technological models to strengthen industrial symbiosis pathways
  • Systems, tools, and methodologies for developing technologies for water supply, rational use and sanitation
  • Innovative technological tools that extend product life cycles and increase production efficiency
  • Experimentation with new smart packaging models, including the use of recovered materials
  • Systems for sorting lightweight multi-materials to increase recovery and recycling rates of small and light materials
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In short

Intended audience Intended audience

The incentive is open to companies of any size operating in the industrial, agri-industrial, artisanal, and industrial services sectors, as well as to research centers. Projects may be submitted individually or jointly. For joint projects only, public and private research organizations are also eligible to participate as co-applicants.

Total budget Total budget

The total financial allocation amounts to €219.8 million, divided as follows: €157 million in subsidized loans through the FRI (Rotating Fund for Business Support (€150 million for national projects, €5 million specifically allocated for the Basilicata region, €2 million for the Piedmont region) and €62.8 million in expenditure grants. This is sourced from €40 million from the Development and Cohesion Fund (80% allocated to Southern Italy, 20% to Central-Northern Italy), €20 million from the Sustainable Growth Fund for national projects, €2.8 million from regional resources of Basilicata and Piedmont.

Funding type Funding type

Companies can access FRI subsidized loans covering up to 50% of eligible expenses, along with grants equal to: 20% for micro and small enterprises and research organizations, 15% for medium-sized enterprises, 10% for large enterprises. Loans and grants are awarded jointly, in compliance with the applicable regional allocation requirements.

Project type Project type

Industrial research and experimental development activities aimed at creating new products, processes, or services, or significantly improving existing ones.

Cooperation Cooperation

Collaboration between multiple applicants is allowed through temporary purpose associations (ATS), temporary business groupings (RTI), or other forms of partnership.

Deadlines Deadlines

Applications can be submitted starting from December 10, 2020, through the online platform provided by the Ministry of Economic Development.

Themes

Productive reconversion of economic activities within the framework of the circular economy.

Is your project eligible for funding?

Projects with a high level of technological innovation and sustainability are eligible, provided they are implemented within the production cycle and are relevant to the circular economy, as identified in Annex No. 2 of the Decree dated June 11, 2020.

Eligible projects must also:

  • Be carried out within one or more local units located in Italy
  • Involve eligible costs and expenses of no less than €500,000 and no more than €2 million
  • Have a duration of no less than 12 months and no more than 36 months

How will PNO help you with the Circular Economy application?

Are you looking for incentive schemes dedicated to supporting projects focused on the productive reconversion of economic activities within the circular economy? PNO Innovation’s experts work daily—with competence and specialized expertise—on the development of project proposals for national funding in the sectors targeted by this incentive.

A few of our experts

Start your Circular Economy application

Are you interested in presenting a project focused on innovation, research and development, based on a new economic model that preserves the value of resources for longer and reduces waste production? Would you like to learn more about PNO Innovations’s services? Contact us to discover more about this opportunity, the types of eligible actions and projects and how we can help lead you to success through our expertise.

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