“LIFE” program of the European Commission

Possibilities for free financing of green business projects Bulgarian companies will compete with the rest in the EU for funding under the LIFE 2021-2027 program.

The European Commission announced in July the first procedures under the LIFE 2021-2027 program. It promotes projects related to two areas – environment and climate action. The program consists of four sub-programmes – “Nature and Biodiversity”, “Circular Economy and Quality of Life”, “Climate Change Mitigation and Adaptation” and “Transition to Clean Energy”. Its total budget for the period 2021-2027 is EUR 5.4 billion, and two of the open application procedures are of particular interest to businesses.

The first is “Circular economy, resources from waste, air, water, soils, noise, chemicals, Bauhaus” with a total budget of 95,420 million euros. The eligible budget of a project is within 2-10 million euros, and the grant may reach up to 60% of it. Projects related to innovative technologies, methods and approaches or best practices (both at Member State or sector level) are supported in the field of:

• Waste – demonstration and promotion of innovative techniques, methods and approaches and/or good practices (separate collection and recycling of waste; identification, tracking, separation, prevention of waste containing hazardous substances);
• Water (safe and efficient use of water resources; protection of the sea and its coast; purification of drinking water and urban wastewater);
• Soils (technologies for restoration, protection and improvement of soil quality);
• Noise (innovative solutions with high environmental and economic sustainability to reduce noise in densely populated urban areas);
• Air (reduction of air pollutants and particulate emissions);
• Chemicals (preventing and reducing the impact of chemical production on the environment and human health);
• Bauhaus initiative (reducing the environmental impact of new buildings and architectural approaches to maintain and restore biodiversity), etc.

Projects must contribute to reducing resource consumption and facilitating the transition to a sustainable, circular, non-toxic, energy-efficient and climate-resistant economy; reducing generation and improving waste management; protecting water resources, air, and soils; reducing the production, use and emissions of hazardous chemicals; reducing exposure to harmful noise levels.

The second open call for applications of particular business interest is “Mitigation of climate change” with a total resource of 30.5 million euros. The supported projects are expected to be within 1-5 million euros each, and again the grant can reach up to 60%. Eligible activities relate to the introduction of innovative technologies, methods and approaches or best practices (both at the Member State or sector level):

• Reduction of greenhouse gas emissions in sectors that are not included in the European Emissions Trading Scheme (ETS), incl. reducing the use of fluorinated greenhouse gases and ozone-depleting substances and activities to support the transition to zero-emission mobility (the focus is on projects addressing alternatives to fluorinated gases, the recovery and recycling of fluorinated greenhouse gases, and the removal of barriers set by standards);
• Activities to improve the functioning of ESTE and impact on energy and greenhouse gas intensive industrial production. Proposals should target energy-intensive industries and in particular those where there is a significant risk of carbon leakage. Priority will be given to projects developing and demonstrating innovative and cost-effective technologies and processes for reducing greenhouse gas emissions;
• Activities to increase production and use of renewable energy and improve energy efficiency;
• Land and water management practices affecting emissions and their elimination; conservation and enhancement of natural carbon reservoirs.

Legal entities (public and private) of any size (including start-ups and large enterprises), associations and international organizations can apply for both calls.

Eligible costs under both funding options include equipment purchase and depreciation, land purchase (subject to certain conditions), subcontractor costs, indirect costs (up to 7%), staff remuneration, travel, subsistence and accommodation costs and financial support to third parties necessary for the implementation of the project. Partnerships are not required to participate, but their presence is better appreciated.

The deadline for applications for the Circular Economy, Resources from Waste, Air, Water, Soils, Noise, Chemicals, Bauhaus and Climate Change Mitigation calls is 30 November 2021, with submission of projects electronically through the portal of the European Commission.