Disclaimer: This English translation is provided for informational purposes only. In the event of any discrepancy, inconsistency, or difference in interpretation between this translation and the original Italian version, the original Italian version shall prevail.

Overall Description

Economia Circolare (Circular Economy) is an incentive managed by Invitalia and promoted by the Italian Ministry of Enterprises and Made in Italy (MIMIT) under the Ministerial Decree of 11 June 2020.

The programme supports the transition of economic activities towards a circular economy model, encouraging productive conversion so that the value of products, materials and resources is maintained for as long as possible while minimising waste generation. It specifically finances business research and development projects aimed at more efficient and sustainable use of resources.

Funding Amount

Eligible projects must have total eligible costs of between €500,000 and €2 million and a duration of between 12 and 36 months.

Financial support consists of a combination of subsidised financing and a direct contribution towards expenditure:

• The subsidised financing covers 50% of eligible costs;
• The direct contribution covers 20% for micro and small enterprises, 15% for medium-sized enterprises and 10% for large enterprises;
• The subsidised financing must be accompanied by bank financing at market rates covering at least 20% of eligible costs.

The programme's total resources comprise €157 million for subsidised financing and €62.8 million for direct contributions towards expenditure, giving a combined financial envelope of €219.8 million.

Submission Deadlines

• No fixed submission deadline.
• The incentive is currently active.
• The application procedure opened on 30 November 2020.

Submission Conditions

Applications must be submitted exclusively through Invitalia's dedicated online area. Applicants must:

• Have a digital identity (SPID, CNS or CIE);
• Have a digital signature and a PEC (certified electronic mail) address;
• Submit the documentation using the official templates published by Invitalia;
• Normally submit only one application. Research organisations are an exception and may participate in multiple joint projects through separate institutes, university departments or other organisational units possessing the required autonomy.

For joint projects, each participating enterprise must incur at least €250,000 in eligible costs, while each research organisation must account for at least 10% of the project's total eligible amount.

Eligible Types of Businesses

The programme is open to enterprises of any size, including SMEs and large enterprises, operating in:

• Industrial activities;
• Agro-industrial activities;
• Craft/artisanal activities;
• Services to industry;
• Research centres.

For joint projects only, public and private research organisations may also participate as co-proponents.

At the application date, enterprises must be duly established, registered and active in the Companies Register, operate under ordinary accounting rules and generally have at least two approved and filed financial statements (or two tax returns for individual businesses/partnerships). Applicants must also satisfy the call's requirements concerning insolvency, repayment of previous aid and the GBER definition of an undertaking in difficulty.

Eligible Countries

• Italy – all regions.
• Projects must be implemented in one or more local operating units located within Italy. Certain portions of the available resources have specific geographical allocations, but the funding instrument itself operates nationally.