Advancing circular logistics solutions in cities
Innovation Actions to develop circular, modular, reusable packaging and logistics solutions for urban freight, supporting climate-neutral smart cities.
This call funds projects that create and test circular logistics solutions in cities. It focuses on reusable packaging, reverse logistics, and digital tools to reduce waste and emissions. Projects must involve multiple cities and demonstrate real-world pilots.
Likely relevant for
- Urban logistics companies
- City authorities and local governments
- Circular economy innovators
- E-commerce logistics providers
- Technology developers in IoT and AI for logistics
- Environmental policy makers
Project signals
What it funds
- Development of innovative, modular, reusable, and recyclable packaging and loading units for urban freight
- Digital tools for tracking, optimizing, and handling loading units using IoT, AI, edge computing, and data platforms
- Co-design with urban stakeholders for circular logistics solutions including parcel lockers and micro-hubs
- Real-world pilots in at least two urban environments covering multiple goods types
- Evaluation of environmental, social, and economic impacts of circular logistics and reverse logistics systems
- Policy recommendations and guidelines for enabling regulatory frameworks and market incentives
Expected outcomes
- Accelerated transition to circular economy in urban freight and logistics
- Increased adoption of circular logistics solutions by operators
- Improved integration of reverse logistics for reuse and recycling
- Optimized resource use reducing material consumption and carbon footprint
- Enhanced cooperation among cities, logistics providers, retailers, and consumers
- Policy frameworks supporting circular urban logistics across European cities and regions
Who can apply / participate
- Local authorities representing cities
- Entities with explicit consent from local authorities
- Research and innovation organizations
- Industry partners including logistics operators and technology providers
- At least three cities from different Member States or Associated Countries must participate
- At least one city must be among the 112 selected for the EU Mission on Climate-Neutral and Smart Cities
- Cities must be from EU Member States or Associated Countries
- Collaboration across multiple countries is required
- Cities must be represented by local authorities or entities with explicit consent
- Projects must comply with EU packaging waste regulations and Horizon Europe rules
- Specific eligibility of non-city participants must be checked in detailed call documents
Must check before shortlisting
- Eligibility of cities as local authorities or with consent
- Inclusion of at least three cities from different EU/associated countries
- At least one city must be part of the EU Mission on Climate-Neutral and Smart Cities
- Compliance with packaging waste regulations and EU policies
- Collaboration plans with Cities Mission Platform, CCRI, and CIVITAS
Money
Total budget for this action is approximately €22.5 million for 2027, funding around 3 grants with lump sum contributions of €7.5 million each.
- Total budget 2027 — 22500000EURApproximate total budget for this action in 2027
- Expected grants — 3Number of grants expected to be awarded
- Minimum and maximum contribution per grant — 7500000EURLump sum funding per grant
Application notes
- Single-stage submission model.
- Proposal page limits and layout as per Annex A and E of Horizon Europe Work Programme General Annexes.
- Eligible countries as per Annex B of Horizon Europe Work Programme General Annexes.
- At least three cities from different Member States or Associated Countries must participate, with one city from the EU Mission on Climate-Neutral and Smart Cities.
- Collaboration with Cities Mission Platform formalized by Memorandum of Understanding or collaboration agreement.
- Eligible costs are lump sums as defined in Horizon Europe lump sum decision.
- Prepare proposal following the specific application form in the Submission System.
- Ensure consortium includes required cities and partners.
- Include provisions for collaboration with Cities Mission Platform, CCRI, and CIVITAS.
- Submit proposal by the deadline (2027-10-07).
- Check eligibility of cities and partners carefully.
- Ensure compliance with packaging waste regulations and EU policies.
- Collaboration agreements with Cities Mission Platform must be established early.
- Funding is lump sum; budget planning must align with lump sum rules.
Derived from official EU Funding portal source · updated 22 Jun 2026, 16:50 UTC. Use this as a shortlisting aid; the official call text remains authoritative.
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Official source text
Fine print from the EU source record. Expand when you need the original wording.
Topic description
Expected Outcome: Projects are expected to contribute to all the following outcomes: Accelerated transition towards circular economy in the freight transport sector and throughout the urban logistics value chain, contributing to the objectives of the Climate-neutral and Smart Cities Mission and the EU Circular Cities and Regions Initiative (CCRI); Increased adoption by logistics operators of new and tested circular systemic logistics solutions, including modular loading units and reusable transport packaging systems tailored for urban delivery settings; Improved integration of reverse logistics into urban logistics models to enable higher reuse and recycling rates; Optimised resource utilisation in urban logistics through innovative circular economy approaches, leading to significant reductions in material consumption and carbon footprint; Enhanced cooperation among urban stakeholders, including local authorities, logistics providers, retailers, and consumers, fostering circular business models and enhancing consumer acceptance. Scope: The rapid growth of e-commerce and urban logistics has led to an increase in packaging waste, inefficiencies in freight transport, and rising environmental impacts. Current urban logistics systems often rely on disposable packaging and fragmented transport operations, resulting in significant material waste, resource inefficiency and carbon emissions. Addressing these challenges requires innovative circular economy approaches, promoting systemic, innovative, circular and scalable solutions for reducing waste generation, in line with the revised EU Packaging and Packaging Waste Regulation (PPWR) [1] , and improving resource efficiency in business-to-business and business-to-consumer logistics. Building on previously funded projects’ outcomes and leveraging potential complementarities with existing regional circularity hubs and other initiatives (e.g. the CCRI [2] and its related projects [3] , as well as the Driving Urban Transition Partnership (DUT) [4] ), proposals should address all the following actions: Design and develop solutions for innovative, modular, reusable, and recyclable packaging and loading units. The proposed solutions should reduce single-use packaging in urban freight transport and demonstrate the benefits of their use in urban logistics processes, while considering the impact of packaging waste regulations on logistics and delivery models in urban areas. Develop and test digital tools and systems for tracking and optimising the use of the loading units as well as for secure and efficient stowage, transport, and handling, by integrating technologies such as Internet of Things, edge computing, Artificial Intelligence and data-driven collaboration platforms (e.g. data spaces), considering technological sovereignty and energy-efficiency. Engage urban and local stakeholders, including local authorities, logistics operators, retailers and citizens, in co-designing innovative solutions to implement reusable and recyclable packaging and use parcel lockers and micro-hubs (pick-up points) for returning new items and collecting used items (for the purpose of repair, reuse, remanufacture, repurpose or recycling), thus promoting the transition to circular urban logistics in various product value chains. Demonstrate the proposed solutions in real-world pilots in at least two different urban environments, each pilot covering two different types of goods or more (e.g. textile apparel, consumer electronics), in cooperation with logistics service providers, cities, and e-commerce value chain actors. Pilots should also consider reverse logistics systems, and innovative return and reuse schemes. Explore and evaluate environmental, social, and economic (e.g. need for new business models and incentive schemes) impacts of circular economy approaches and specifically the potential of reverse logistics systems to enable circular flows of materials, reduce greenhouse gas and pollutant emissions, and support reuse schemes. In a co-creation process with local authorities, propose policy recommendations and guidelines to support cities in designing enabling regulatory frameworks and market incentives aligned with local circular economy goals and in integrating circular economy principles into urban logistics related policies, plans [5] and regulations. Provide policy recommendations to facilitate the adoption of modular loading units and the integration of sustainable logistics measures into broader urban circular economy strategies across European cities and regions. Collaboration with the Cities Mission Platform – through the CIVITAS initiative [6] – and the CCRI is essential. Proposals should include appropriate provisions for activities and resources to support clustering activities and cooperation with the Cities Mission Platform, the CCRI, and the CIVITAS initiative [7] . Proposals should also plan for an active collaboration amongst the projects selected under this topic - for dissemination, evaluation and coordination - facilitated by and within the above mentioned initiatives. Moreover, proposals are expected to ensure that their dissemination and exploitation strategies feature dedicated actions for promoting their results and lessons learned across the Cities Mission Platform, CIVITAS and CCRI websites. This action supports the follow-up to the July 2023 Communication on EU Missions assessment [8] . null Activities are expected to achieve TRL 7-8 by the end of the project – see General Annex B. [1] Regulation - EU - 2025/40 - EN - EUR-Lex [2] Circular Cities and Regions Initiative [3] CCRI Projects (e.g. Rewrap: Challenging the Dominance of Single-Use Plastic Wraps | DEFINITE-CCRI ) [4] The DUT Partnership [5] E.g. within the Sustainable urban mobility planning [6] https://civitas.eu/ [7] The CIVITAS initiative should establish, through a collaboration agreement set up together with the Cities Mission Platform, clear links with the Mission portfolio for synergies and complementarities. [8] COM(2023) 457 final and SWD(2023) 260 final
Conditions and documents
General conditions
1. Admissibility Conditions: Proposal page limit and layout
2. Eligible Countries
described in Annex B of the Work Programme General Annexes.
A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects. See the information in the Horizon Europe Programme Guide.
3. Other Eligible Conditions
The following additional eligibility criteria apply:
At least three cities, represented by a local authority or by an entity with an explicit consent from the local authority, each from a different Member State or Associated Country, must participate as beneficiaries. At least one of the three cities must be one of the 112 cities selected for the EU Mission on Climate-Neutral and Smart Cities[[The EU Mission on Climate-Neutral and Smart Cities aims to deliver 100 climate-neutral and smart cities by 2030 and ensure that these cities act as experimentation and innovation hubs to enable all European cities to follow suit by 2050. On 28 April 2022, the Commission announced the 100 EU cities that will participate in the Mission. In addition, 12 cities have been selected from countries associated or expected to be associated the Horizon Europe programme.]].
Subject to restrictions for the protection of European communication networks.
described in Annex B of the Work Programme General Annexes.
4. Financial and operational capacity and exclusion
described in Annex C of the Work Programme General Annexes.
5a. Evaluation and award: Award criteria, scoring and thresholds
are described in Annex D of the Work Programme General Annexes.
5b. Evaluation and award: Submission and evaluation processes
are described in Annex F of the Work Programme General Annexes and the Online Manual.
5c. Evaluation and award: Indicative timeline for evaluation and grant agreement
described in Annex F of the Work Programme General Annexes.
6. Legal and financial set-up of the grants
Grants awarded under this topic will be linked to the following action(s):
HORIZON-MISS-2021-CIT-02-03
Collaboration with the Cities Mission Platform[[Set up by Horizon 2020 project NetZeroCities - Accelerating cities' transition to net zero emissions by 2030, Grant Agreement n. 101036519, and scaled up through topic HORIZON-MISS-2021-CIT-02-03: Framework Partnership Agreement (FPA) for the Climate-Neutral and Smart Cities Mission Platform.]] is essential and projects must ensure that appropriate provisions for activities and resources aimed at enforcing this collaboration are included in the work plan of the proposal. The collaboration with the Cities Mission Platform must be formalized through a Memorandum of Understanding or a collaboration agreement to be concluded as soon as possible after the project starting date.
Eligible costs will take the form of a lump sum as defined in the Decision of 7 July 2021 authorising the use of lump sum contributions under the Horizon Europe Programme – the Framework Programme for Research and Innovation (2021-2027) – and in actions under the Research and Training Programme of the European Atomic Energy Community (2021-2025) [[This decision is available on the Funding and Tenders Portal, in the reference documents section for Horizon Europe, under ‘Simplified costs decisions’ or through this link: https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/guidance/ls-decision_he_en.pdf]].
described in Annex G of the Work Programme General Annexes.
Specific conditions
Not applicable.
Application and evaluation forms and model grant agreement (MGA):
Application form templates — the application form specific to this call is available in the Submission System
Standard application form (HE RIA, IA)
Evaluation form templates — will be used with the necessary adaptations
Standard evaluation form (HE RIA, IA)
Guidance
Model Grant Agreements (MGA)
Call-specific instructions
Additional documents:
HE Main Work Programme 2026-2027 – 1. General Introduction
HE Main Work Programme 2026-2027 – 12. Missions
HE Main Work Programme 2026-2027 – 15. General Annexes
HE Framework Programme 2021/695
HE Specific Programme Decision 2021/764
EU Financial Regulation 2024/2509
Decision authorising the use of lump sum contributions under the Horizon Europe Programme
Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment
EU Grants AGA — Annotated Model Grant Agreement
Funding & Tenders Portal Online Manual
Support information
Online Manual is your guide on the procedures from proposal submission to managing your grant. Horizon Europe Programme Guide contains the detailed guidance to the structure, budget and political priorities of Horizon Europe. Funding & Tenders Portal FAQ – find the answers to most frequently asked questions on submission of proposals, evaluation and grant management. Research Enquiry Service – ask questions about any aspect of European research in general and the EU Research Framework Programmes in particular. National Contact Points (NCPs) – get guidance, practical information and assistance on participation in Horizon Europe. There are also NCPs in many non-EU and non-associated countries (‘third-countries’). Enterprise Europe Network – contact your EEN national contact for advice to businesses with special focus on SMEs. The support includes guidance on the EU research funding. IT Helpdesk – contact the Funding & Tenders Portal IT helpdesk for questions such as forgotten passwords, access rights and roles, technical aspects of submission of proposals, etc. European IPR Helpdesk assists you on intellectual property issues. CEN-CENELEC Research Helpdesk and ETSI Research Helpdesk – the European Standards Organisations advise you how to tackle standardisation in your project proposal. The European Charter for Researchers and the Code of Conduct for their recruitment – consult the general principles and requirements specifying the roles, responsibilities and entitlements of researchers, employers and funders of researchers. Partner Search help you find a partner organisation for your proposal.
Raw budget overview
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