A funding opportunity with a total budget of €47.5 million is now open for Innovation Action (IA) projects that develop and demonstrate replicable tools, solutions, and business models to implement circular economy principles in the construction sector at building, district/neighbourhood, and city scales. The objective is to accelerate the transition towards climate-neutral, smart, and circular cities by reducing raw material extraction, resource consumption, and greenhouse gas (GHG) emissions throughout the built environment lifecycle.

Who can apply?

Consortia (under the standard Horizon Europe eligibility rules): typically at least three independent entities from at least three different countries, including at least one EU Member State and at least two Member States or Associated Countries.

Topic-specific eligibility conditions

• The consortium must include at least three cities as beneficiaries, each from a different EU Member State or Associated Country.
• At least one of these cities must be one of the 112 Mission “Climate-Neutral and Smart Cities”.

Circular Economy in the Construction Sector: Objectives

Expected Outcomes

• Measurable increase in the number of district- and city-level tools and solutions supporting the uptake of circular business models by public and private stakeholders in the construction sector.
• Measurable reduction in material use and increased reuse and recycling through new, replicable business models.
• Measurable reductions in energy and resource consumption, as well as lifecycle GHG emissions from buildings and building stocks (residential and non-residential), by introducing circular activities across

Circular Economy in the Construction Sector: Scope

The call seeks market-ready solutions and associated business models that facilitate the adoption of inclusive circular economy approaches in construction while promoting more efficient use of the built environment, ultimately reducing the need for virgin raw material extraction.

Proposals should address

• Develop and demonstrate district- or city-level tools and solutions while quantifying their impacts, including: urban mining; reuse and recycling of construction products and materials; use of secondary bio-based materials; innovative, accessible and adaptive design; building renovation and repurposing aligned with waste prevention and circularity.
• Diagnose and characterise the performance of used construction products and demolition waste (condition assessment and reuse potential), including inventories of recovered products and materials, and business models such as marketplaces, material banks, and component banks.
• Develop lifecycle GHG inventories for buildings to support evidence-based public decision-making in line with the revised Energy Performance of Buildings Directive (EPBD).
• Contribute to reducing regulatory barriers and, where relevant, support standardisation activities.
• Ensure integration across value chains and active stakeholder engagement, including SMEs, building owners, local authorities, and civil society.

Demonstration Requirements

• Mandatory demonstration in at least three cities located in three different countries, including the potential for cross-border reuse of construction materials and products.
• Demonstration cities must participate as beneficiaries within the consortium.
• Activities are expected to reach TRL 7–8 by the end of the project.

What Strengthens a Competitive Proposal

• City-ready tools and solutions (district/city scale) with clear metrics demonstrating reduced material consumption, increased reuse and recycling, and lifecycle GHG reductions.
• A robust business model strategy covering marketplaces, material banks, logistics, quality assurance, and liability mechanisms to make circularity operational and scalable.
• Strong lifecycle assessment (LCA) and lifecycle GHG inventory components aligned with public decision-making needs under the revised EPBD.
• A concrete strategy addressing regulation and standards, including barrier identification, policy recommendations, and engagement with relevant organisations.
• Comprehensive stakeholder integration and change management involving SMEs, building owners, municipalities, and citizens.
• Clustering with other Horizon Europe projects and active engagement with the Cities Mission Platform, the New European Bauhaus (NEB), Built4People (B4P), and the Circular Cities and Regions Initiative (CCRI), supported by a dedicated collaboration, dissemination, and exploitation plan, including joint activities where appropriate.

Circular economy in the construction sector: Funding

• Total topic budget: €47.5 million
• Indicative number of projects: 5; Indicative EU contribution per project: approximately €9.5 million
  
• Funding is provided as a Lump Sum, requiring a carefully structured work plan, clear work package budgeting, and a results-oriented implementation logic with strong traceability through deliverables and milestones.

How INOVA+ can support

This call operationalises the transition towards climate- and resource-efficient cities by addressing one of the largest drivers of greenhouse gas emissions and resource consumption: the built environment. Successful proposals are expected to combine:
Technical solutions (diagnostics, inventories, circular design and renovation);
Market-oriented business models and tools (material banks, marketplaces);
Large-scale demonstration in cities with strong replication potential and cross-border material reuse.

INOVA+ can support applicants through strategic interpretation of the call, consortium building, Lump Sum work plan design, KPI development, impact assessment methodologies, proposal storytelling (integrating circularity, business models, lifecycle GHG accounting, and regulatory aspects), and proposal preparation to maximise replication, exploitation, and project impact. Get in touch with us to discuss your project idea. Contact us!