Capitalizing the Transition

Transitioning to advanced circular manufacturing requires strategic capital. High-performance biocomposites and smart cybernated lines demand robust upfront investments (CAPEX). To make your circular transition commercially viable and lower implementation risks, this Financial Instrument Guide will provide you information on different funding schemes you can use to address the most critical barrier for circular upscaling: the “Valley of Death” between TRL 4–6 pilot testing and TRL 7–9 commercial deployment.

This tool aims to guide industrial managers, recycling operators, and tech SMEs directly to the public grants, national subsidies, and private venture capital funds suited to finance their replication roadmaps.

a) Main EU Funding Opportunities for Circular Polymers and Digital Traceability

At European level, several funding mechanisms support the transition toward circular materials, advanced recycling, and digitalisation of value chains. For the polymer sector, these instruments are particularly relevant when addressing recycled feedstock integration, material traceability, and digital twins for process optimisation.

1. Advanced recycling and circular polymer materials
This area covers projects focused on improving recyclability, integrating recycled polymers into new products, and developing safer or bio-based additives to enhance circularity.

Different relevant funding opportunities exist:


  • I3 Instrument (Interregional Innovation Investments): supports interregional innovation ecosystems and industrial scale-up projects linked to Smart Specialisation Strategies (S3), particularly relevant for market deployment of recycling technologies and industrial symbiosis.

  • CBE JU 2026 (Circular Bio-based Europe Joint Undertaking): includes specific open calls on bio-based additives improving recyclability and high-performance circular-by-design materials, highly relevant for polymer substitution and recycled compound development.

  • LIFE Programme (Circular Economy and Quality of Life subprogramme): supports pilot and demonstration projects in plastics valorisation, waste reduction and eco-design.


Opportunity for INCIRCULAR-type actors: demonstration of recycled polymer applications, additive compatibility testing, and circular product redesign.

2. Material identification, sorting technologies and traceability
Funding increasingly targets technologies enabling better material identification across the value chain, including sensor systems, markers, AI-driven sorting, and Digital Product Passports (DPP).
Relevant funding opportunities include:

  • Horizon Europe Cluster 4 (Digital, Industry & Space): supports advanced materials, AI-enabled industrial systems, and digital traceability technologies for circular manufacturing.
  • Single Market Programme (SMP) – Sustainability calls: increasingly funds SME adoption of Digital Product Passport and supply chain transparency tools.
  • Innovation Fund: relevant for industrial-scale deployment of advanced sorting and recycling technologies with measurable CO₂ reduction.

3. Digital twins for circular manufacturing and recycling optimisation
Digital twins are becoming central to modelling recycled material behaviour, improving process efficiency, and supporting lifecycle-based decision-making.
Relevant funding opportunities include:

  • Horizon Europe Cluster 4 & Cluster 5: recurrent calls on industrial digital twins, process simulation, and resource efficiency.
  • Digital Europe Programme (DEP): supports deployment of digital infrastructures including AI, data spaces, and industrial digital twins.
  • European Innovation Council (EIC Accelerator): supports disruptive SME technologies including advanced industrial software, smart recycling systems, and predictive material intelligence.

Opportunity for INCIRCULAR-type actors: digital twins for recycled polymer qualification, predictive degradation modelling, and virtual process optimisation.

Open funding opportunities

Year Cluster Call Topic Destination Type of Action Budget (M€) Contribution per project (M€) Opening date Closing date
2027
CL4
INDUSTRY
HORIZON-CL4-2027-01-MATERIALS-PRODUCTION-02: Advanced manufacturing for key products (IA) (Made in Europe partnership)
Leadership in materials and production for Europe
IA
36
6.00 to 8.00
22/09/2026
02/02/2027
2027
CL4
INDUSTRY
HORIZON-CL4-2027-01-MATERIALS-PRODUCTION-03: Factory processes and automation for de- and re-manufacturing (RIA) (Made in Europe partnership)
Leadership in materials and production for Europe
RIA
36
5.00 to 6.50
22/09/2026
02/02/2027
2027
CL4
INDUSTRY
HORIZON-CL4-2027-01-MATERIALS-PRODUCTION-06: Circular innovative advanced materials: facilitating the transition from design to markets (RIA) (Innovative Advanced Materials for the EU and Made in Europe partnerships)
Leadership in materials and production for Europe
RIA
36
5.00 to 6.50
22/09/2026
02/02/2027
2027
CL4
INDUSTRY
HORIZON-CL4-2027-01-MATERIALS-PRODUCTION-22: Innovative advanced materials and new production processes – reducing dependencies on Critical and Strategic Raw Materials (IA) (Innovative Advanced Materials for the EU and Processes4Planet partnerships)
Leadership in materials and production for Europe
IA
36
6.00 to 7.50
22/09/2026
02/02/2027
2027
CL4
DIGITAL
HORIZON-CL4-2027-04-DATA-03: New approaches for decentralized, federated and sustainable AI data processing (RIA)
Developing an agile and secure single market and infrastructure for data-services and trustworthy artificial intelligence services
RIA
35
Around 17.50
17/11/2026
18/03/2027
2027
CL4
DIGITAL
HORIZON-CL4-2027-04-DIGITAL-EMERGING-05: Apply AI: AI-Driven Robotics for Industry: Enabling System Integration and Adoption (IA) (Partnership in AI, Data and Robotics)
Achieving open strategic autonomy in digital and emerging enabling technologies
IA
18
Around 18.00
17/11/2026
18/03/2027
2026
CL4
Call 01 – single stage (2026)
HORIZON-CL6-2026-01-CIRCBIO-01: Improving circularity of multilayer flexible plastic food contact packaging
Circular economy and bioeconomy sectors
IA
11
5.00 to 6.00
17/04/2026
17/09/2026
2027
CL6
Call 01 – single stage (2027)
HORIZON-CL6-2027-01-CIRCBIO-03: Developing novel recycling technologies for complex plastic materials applying biotech solutions
Circular economy and bioeconomy sectors
RIA
10
Around 5.00
20/04/2027
22/09/2027
i3
Interregional Innovation Investments (I3) Instrument
13/05/2026
12/11/2026
Eureka
Eurostars
Eurostars Call 10 for projects – deadline March 2026 – Eureka Network
2 deadlines per year with the same rules
September 2026

 b) Main National Funding Sources

Beyond EU programmes, partner countries provide complementary national instruments to accelerate industrial transition.

France

France combines regulatory pressure (AGEC Law) 
with industrial support mechanisms:


  • ADEME Innovation Calls: regular calls on plastics recycling, eco-design, and circular industrialisation.

  • France 2030: supports industrial decarbonisation and advanced materials innovation.

  • Bpifrance Deeptech and Industrial Innovation schemes: relevant for digital twins, AI for manufacturing, and material traceability.
Spain

Spain aligns national funding with its España Circular 2030 strategy:

  • PERTE Circular Economy calls: support industrial circularity and advanced recycling.

  • CDTI Innovation grants: strong fit for TRL 5–8 industrial technologies.

  • Regional innovation calls (Catalonia, Basque Country, Valencia) for circular materials and Industry 4.0.

Slovenia

Slovenia supports circular transition through:

  • Slovenian Enterprise Fund (SPS) innovation calls.

  • SPIRIT Slovenia industrial transition grants.

  • Cohesion-funded national circular economy programmes.

c) Private Investment and Venture Capital

Private capital is increasingly entering the circular materials space, especially where industrial scalability and measurable environmental performance are demonstrated.
For polymer recycling and digital traceability, investors are particularly interested in:


  • scalable advanced recycling technologies;
  • high-value recycled compounds;
  • SaaS platforms for material intelligence and Digital Product Passport compliance;
  • AI and digital twins improving industrial efficiency.

Key private investment actors:

Demeter / Circular Innovation Fund (France)
Focuses on growth-stage circular economy companies, including advanced materials and recycling.
Mirova (France)
Strong interest in industrial circularity, sustainable materials, and natural capital.
Eurazeo Planetary Boundaries Fund
Supports scale-up of climate and circularity technologies.
Vesna Deep Tech Venture Fund

Strategic recommendation for replication of INCIRCULAR

For projects combining recycled polymers + material identification + digital twins, the most relevant short-term funding combination would be:


  • CBE JU for material innovation and recyclability enhancement;

  • Horizon Europe Cluster 4 for digital twins and traceability;

  • LIFE for piloting industrial circular solutions;

  • ADEME / France 2030 / CDTI / SPS for national co-funding;

  • Circular Innovation Fund / EIC Accelerator for private scale-up financing.


This blended approach helps bridge the classical gap between TRL 4–6 innovation and TRL 7–9 industrial deployment, which remains one of the main barriers for SMEs in the circular polymer sector.

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Address
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