Discretionary government transfers for circular economy investment and development projects
As a part of its innovation subsidising package, the Government provided assistance to the development of business ecosystems for the circular economy, the renewal of companies and sustainable growth. A sum of EUR 2 million in discretionary government transfers has been approved for 2018 and a further EUR 2 million for 2019.
The Government hopes to see the subsidy-instruments for the circular economy encourage companies and actors to start planning investments and launch activities with these investments. These instruments also aim to encourage companies and actors to seek partners from different sectors and different operating environments so that the circular economy's material flow and customer needs are balanced. In particular, they aim to promote companies to find solutions to topical challenges, such as the efficient use of plastics and other material according to circular principles, and facilitate processes that enable different kinds of circular economy solutions and create cooperation among operators.
The aim is for discretionary government transfers is to speed up larger packages and broad-scoped projects. The circular economy projects, which receive assistance in the form of transfers granted by the Ministry of Economic Affairs and Employment, must support the main objectives set for the Government's key projects, which include sustainable growth of the economy and an increase in new jobs. In addition, investments aim to use bioeconomy, clean solutions and circular methods to influence a systematic change towards sustainable business models.
Business Finland and Sitra have their own grants for promoting the circular economy. The Ministry of Economic Affairs and Employment, Business Finland and Sitra have agreed on cooperation which will facilitate funding services for circular economy that will supplement one another.
Applications may be presented to a limited group of people in the Business Finland and Sitra units that decide on grants and a proposal may be made to combine grants or a different type of grant may be proposed for the applicant, if it is more likely to facilitate the successful implementation of the project..
Discretionary government transfers for circular economy investment and development projects can be used in the following manner:
- In the first place, they can be used to adopt or expand technologies or service models associated with the production or deployment of new circular solutions and processes. In the second place, they can be used to implement piloting and demonstration projects to test recycled products and materials and side-stream processed for waste in Finland;
- They can be used to promote technology and services that help turn ideas of circular economy into products and services or their environmental and economic impacts that clearly facilitate the breakthrough of the circular economy in Finland;
- They can be used to fund investments on new circular business models, new platforms or digital services, operating models or product and service planning that facilitate the commercial deployment of the circular economy;
- They can be used on reviews and feasibility studies and reviews for investment projects to promote domestic investment in the circular economy by different operators.
Applications should be submitted to the Ministry of Economic Affairs and Employment.
Further information:
Tuula Savola - tuula.savola(at)tem.fi
Ulla Palander - ulla.palander(at)tem.fi