The innovation fund for circular solutions is a funding scheme for municipalities and other local and regional contracting authorities in the Nordic countries. The thematic areas eligible for funding are circular ICT, logistics optimization and circularity in transport, and behavior change for circular procurement.
Intention with the innovation fund
To fund projects on a local and regional level, that support the goals of the Nordic Program on Circular Procurement (NPCP). These are:
- Develop solutions to common barriers Nordic municipalities face in implementing circular solutions and optimizing logistics
- Reduced consumption
- Reduction of costs for municipalities
Challenges many municipalities face
Many municipalities already have framework agreements for circular solutions, yet much is still purchased outside these agreements. Even with political commitment and contracts in place, internal routines and established procurement practices can get in the way – and the market is not always mature enough to deliver at the scale or speed required.
The same applies to logistics, where fewer and larger deliveries, or deliveries outside regular opening hours, can be difficult to implement across complex organizations. The Innovation Fund is designed to address these challenges.
Who may apply?
- Nordic municipalities are prioritized for funding.
- Other local and regional contracting authorities may also apply.
When is the deadline?
Applications are reviewed on a rolling basis throughout 2026.
- First submission deadline: 20 February 2026
- Second submission deadline: 1 June 2026
- Third submission deadline: TBD (September/October)
How much funding may we receive?
For 2025–2027, a total of DKK 3 million is allocated to the innovation fund. The maximum amount a project may receive is DKK 750,000. However, applicants should expect that awarded amounts may be lower than the maximum.
The recipient organization’s own staff hours may be charged at a rate of up to DKK 500 per hour.
What kind of projects may receive funding?
We provide support to test and scale circular solutions, finance innovative procurement processes, and pilot new ways of working that make it easier to change established practices. We want to help speed-test new solutions, as well as to help solutions reach implementation and scale.
The projects eligible for funding are those related to the thematic areas of NPCP's networks/projects in the table below.
| Network/project | Network /project leader | Email Address |
|---|---|---|
| Circular ICT Network Promoting reuse and refurbishment of ICT equipment in procurement | Joakim Thornéus | [email protected] |
| Zero-Emission Delivery Network Promoting logistics-optimization in public deliveries, and promoting circularity in transport (such as increasing life-span of vehicles or improved fleet management) | Odd Olaf Schei | [email protected] |
| Procurement behavior Contribute concrete insights toward achieving circular goals through at least one of the following areas: data collection aimed at uncovering actual behaviors, the design of interventions within the procurement manager’s mandate, or the implementation of behavior‑oriented interventions | William Biørnstad | [email protected] |
Contact the relevant network or project leader with any quesions about your project’s funding eligibility. We are happy to discuss your idea before you submit your application!
Examples of projects not eligible for funding in the current evaluation round
- Projects where the main theme is not ICT, transport/logistics or procurement behavior
- Projects without a clear link to procurement. Eligible projects must be relevant to those working with purchasing in municipalities, such as tender design, framework agreements, contract follow-up, or changing ordering behaviour
- Projects that aim to develop solutions already readily available through the market at reasonable cost
- Operating costs following the establishment of a measure
- Projects that would constitute state aid under EEA state aid rules. This may apply where the applicant collaborates with private actors or engages in economic activity by supplying goods or services in the market
About state aid under EEA rules
Article 61 of the EEA Agreement sets out limits on what may be funded. If the six cumulative conditions set out in the article are met, the support is considered state aid and is, in principle, prohibited. Because these conditions are cumulative, all must be fulfilled. The six conditions are:
- The recipient is an undertaking engaged in economic activity
- The aid is granted by the state or through state resources in any form
- The aid confers an economic advantage on the recipient
- The aid favours certain undertakings or the production of certain goods or services
- The aid has the potential to distort competition
- The aid may affect trade between EEA countries
If any one of these conditions is not fulfilled, the grant does not constitute state aid, and an approval may normally be issued without reservations.
It is the applicant’s responsibility to assess whether the proposed project may constitute state aid and to provide documentation supporting this assessment. If, during the case processing or the implementation of the project, it is determined that the support nonetheless constitutes state aid, the application may be rejected, or previously granted support may be reclaimed.
How to apply for funding
To prepare the application you may download a copy of the application form:
When you are ready to fill in the form you may send the application:
Requirements for grant recipients
1. Funding recipients shall participate in our networks for ambitious buyers (if relevant)
Our networks for ambitious buyers meet twice a year, and cover our thematic areas:
- Circular ICT
– Promoting reuse and refurbishment of ICT equipment - Zero-Emission and Reduced Transportation
– Supporting zero-emission deliveries and strategies for reducing transport (ton-miles) through better logistics solutions
2. Reporting
Recipients must submit interim and final progress reports, including deliverables and financial documentation. The scope of the reporting should be proportionate to the size of the grant.
Before the final payment, submit a concise (≤ 1 page) note confirming implementation status and a realistic plan for further embedding the solution in the organization.
Types of Reports
Grant recipients are required to submit the following:
- Finalized Project Plan (prior to 1st disbursement)
- Interim Progress Report (prior to 2nd disbursement)
- Final Report (prior to final disbursement – this report shall be in a publishable format)
Content Requirements
- Milestone achievement: Describe progress on key milestones (e.g., stakeholder meetings, market dialogues, pilot implementation).
- Deliverables: Attach or link to concrete deliverables (guides, tools, frameworks).
- Quantitative indicators: Report on outputs and outcomes using agreed metrics (e.g., number of workshops held, entities engaged).
- Budget and financial documentation: Provide a financial report detailing actual vs. planned expenditures.
- Evaluation and learnings: Describe what worked and what didn’t work. How the project evolved, and to what extent, will the learning points to be integrated in existing practices and processes.
Report Frequency and Timing
- Initial Submission: Finalized project plan submitted upon contract signing
- Interim Reporting: Brief progress update due mid-way through the project or upon major milestone completion
- Final Reporting: Due at project end, including all documentation and financial summaries
3. Leadership support
Recipients must document that the organizational leadership supports the innovation project. Support must come from the relevant head of section/department or above.
Evaluation criteria
We evaluate the applicants based on the following criteria.
1. Potential for reduced consumption or optimized logistics
The extent to which the initiative is likely to reduce consumption through circular solutions or more efficient deliveries or logistics optimization.
2. Relevance to common Nordic municipal challenges
How well does the project address a challenge shared by multiple municipalities across the Nordic region – particularly within circular ICT, more efficient deliveries and logistics, or behavior for circular procurement.
3. Potential to reduce costs in the organization
The initiative’s expected potential to lower municipal medium- or long-term costs, either directly through consumption, operations, procurement, or indirectly through resource use, maintenance, infrastructure.
4. Scalability and potential for long-term implementation
The likelihood that the solution can be adopted by multiple municipalities, integrated into normal operations, and lead to lasting improvements in routines, practices, or procurement processes.
Grant Disbursement
Grants will be disbursed in two or three stages over the course of the project, based on the contract value and aligned with key project milestones. This staged approach ensures accountability and demonstrates progress:
- 1st Installment (33%): Disbursed upon contract signing and submission of a finalized project plan
- 2nd Installment (33%): Disbursed upon submission of a brief interim report showing meaningful progress and adherence to the approved budget
- 3rd Installment (34%): Disbursed upon submission and approval of the final report (for in-house projects) or the final consultant report (for outsourced work), including:
- Documented project outputs
- Final budget report
- Plan for further development of solution after project end
- Summary of lessons learned
We reserve the right to retract the disbursement if the terms and conditions in the contract are breached.