The United Nations Development Programme and the Ministry of Environmental Protection, in cooperation with the Global Environment Facility, are launching a Pre – Challenge Call for sourcing proposals for community-driven, innovative and cost-effective business models and technical solutions for reduction of GHG emissions by applying principles of the circular economy, while simultaneously generating social, economic and environmental benefits for the community and its citizens.

The project goal is to catalyze and boost innovative circular economy project and business ideas that contribute to the low carbon development and to leverage cofinancing for them. The biggest identified challenges are the lack of investments, incentive measures and sustainable business models, followed by the lack of legal procedures, general lack of information as well as the unfavourable behavioural habits of citizens.

Besides waste reuse and recycling and setting up the secondary raw materials markets, the project should build upon the Roadmap for Circular Economy in Serbia (MoEP, 2020. Link). It will expand the narrative and focus on advancing the circular economy and reducing greenhouse gas emissions by promoting:

• Solutions that increase the share of the re-use of non-hazardous, secondary materials in production processes (focusing more on re-use than on the energy recovery)
• New circular design that prolongs longevity, reduces toxicity and overall carbon footprint, reduces demand for and consumption of materials (dematerialization), uses alternative resources (substitutes critical raw materials), increases repairability, upgradability and disassembly, and focuses on material and energy efficiency of product use.
• Novel solutions to increase resource and energy efficiency in production;
• Innovation in the decarbonization of logistics (inbound, outbound or last-mile delivery and sales);
• New business models that focus on sharing, pooling, increased longevity, intensity and repeatability of use, likewise on virtualization of usage;
• New end-of-life solutions that bring products, components and materials from their End of Life stage to repeated use, repairs, remanufacturing, refurbishment, recycling; and
• Solutions that increase visibility and traceability of materials and energy throughout the lifecycle or across their spatial distribution.

The objectives of the UNDP/GEF funded project "Reducing Community Carbon Footprint by a Circular Economy Approach in the Republic of Serbia" are:

• to support the Government of Serbia to achieve a more comprehensive strategic focus on developing the circular economy concept in the country, and
• to catalyze and boost innovative circular economy projects and business ideas & leverage co-financing for them.

Why to participate in the Innovation Challenge?

• To help solve a pressing social, economic and environmental challenge in your local community;
• To access co-funding for further project development and actual implementation;
• To gain new knowledge and skills for developing an idea for innovative business models or products for a market with longer-term benefit for your organization and environment, for competitiveness development of your idea and your organization in line with consumption needs;
• To receive free expert coaching and mentoring - for ideas and concepts selected for further development;
• To network and find partners for your ideas who share a common vision;
• To increase the visibility of your ideas domestically and internationally

The Ministry of Environmental Protection and UNDP will set a Project Accelerator to provide technical assistance for the projects which will pass the technical evaluation. Assistance will include mentorship and experts' support in developing novel technical or business solutions that will apply circular & low carbon approach in design, production or consumption stage of a product/service lifecycles. The assistance could include legal, economic and financial, engineering support, to assist the projects to achieve the level of bankability needed to mobilize funds for implementation.

Funding Information

Based on a financial plan and total project budget value, proposals will be divided into 3 categories:

• Small projects (up to 100.000 USD) – financial resources for the implementation of such projects can also be provided through alternative sources of funding (for example crowdfunding).
• Medium projects (up to 1 mil USD),
• Large projects (investment values exceed 1 mil USD).

Eligibility Criteria

• Eligible applicants are:
  • Local self – government (cities and municipalities)
  • Public utility company
  • Commercial organization/businesses (Ltd, entrepreneurs)
  • Civil society organizations
• All applicants have to be registered in Serbia, according to national legislation.

For more information, visit UNDP.