New Dutch subsidy aims to support SMEs in circular initiatives, driving sustainability and reducing CO2 emissions.

Target audience: SMEs

The subsidy is specifically targeted at small and medium-sized enterprises (SMEs) or collaborations between SMEs and larger companies. These entities are encouraged to undertake circular activities within specific product groups, including:

• Electronic and electrical equipment
• Textiles
• Diaper and incontinence materials
• Reusable cups and meal packaging
• Furniture

Objectives of the subsidy

The primary goal of the subsidy is to stimulate companies within these product groups to adopt circular practices, thereby reducing their CO₂ emissions and conserving materials and energy throughout the product chain. Currently, circular projects or companies often struggle to compete with traditional linear businesses. This subsidy aims to level the playing field, enabling businesses to choose circular projects over linear ones more easily and to scale existing circular activities.

By incentivizing circular entrepreneurship, the Ministry of Infrastructure and Water Management is driving companies to prioritize circular projects over linear ones. This shift not only reduces CO₂ emissions but also conserves materials and energy within the production chain. Furthermore, it expands consumer choices by making more circular products available in the market.

Types of circular projects eligible for subsidy

A wide range of circular projects may qualify for support under this subsidy. These projects can encompass activities such as:

• Reuse
• Preparation for reuse
• Repair
• Refurbishment
• Remanufacturing
• Facilitating higher-quality recycling of materials

Examples of projects that could receive subsidy support include:

1. A project focused on dismantling, inspecting, and cleaning furniture for resale in the second-hand market.
2. A project offering a complete service for reusable diapers, including collection, washing, and distribution, as an alternative to disposable diapers.
3. A project centered on repairing electronic devices.

The "Circular Implementation and Scaling" subsidy from the Dutch Ministry of Infrastructure and Water Management represents a significant opportunity for businesses to embrace circular practices, reducing their environmental impact while fostering innovation and competitiveness. However, we always wonder if this type of subsidizing works in the long run.