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Grant Analysis

Purpose & Target

GRANT PURPOSE AND TARGET: - The grant aims to demonstrate the economic viability of local, on-demand textile and apparel production through the integration of advanced digital technologies across the entire product lifecycle. - It seeks to accelerate the adoption of these technologies by European textile and fashion SMEs and increase the re- or near-shoring of time-critical textile product manufacturing in an environmentally and socially responsible manner. - This grant is SECTOR-SPECIFIC, focusing on the textile and apparel industry. - The geographic scope is primarily European, supporting re- or near-shoring within Europe. Non-EU/non-Associated Countries may be eligible if they have made specific funding provisions, but legal entities established in China are not eligible to participate in Innovation Actions. - Key filtering criteria for initial screening include a focus on digital technologies for textile and apparel, local-for-local production models, and sustainability/circularity within the supply chain. - This is a recurring grant program as part of the Horizon Europe Work Programme 2025.

Financial Structure

FINANCIAL STRUCTURE: - The total budget for this specific topic (HORIZON-CL4-INDUSTRY-2025-01-MATERIALS-31) is EUR 10,000,000. - Each successful grant is expected to receive a contribution of EUR 5,000,000. - The grant will take the form of a lump sum contribution, meaning payments are linked to the completion of defined work packages and not to actual incurred costs. - Indirect costs are calculated using a 25% flat rate applied to the direct costs that qualify for indirect cost calculation. - Financial support to third parties (FSTP) is permitted, with a maximum amount of EUR 60,000 per third-party beneficiary. FSTP can only be provided to SME participants. - Co-financing is expected; the EU contribution will reflect the reimbursement rates set out in the Horizon Europe rules (typically 70% for for-profit entities and 100% for non-profit entities for Innovation Actions), meaning beneficiaries are expected to cover the remaining costs. - Pre-financing will follow standard Horizon Europe rules. - Between 5% and 8% of the total lump sum is retained as a contribution to the Mutual Insurance Mechanism.

Eligibility Requirements

ELIGIBILITY REQUIREMENTS: Organizational Types

Eligible organizations include: SMEs, start-ups, advanced technology providers, manufacturing SMEs, and end-market facing companies (such as retailers or professional/consumer service providers).
Active participation of larger companies in innovation projects is encouraged, but Financial Support to Third Parties (FSTP) is only provided to SME participants.

Consortium Requirements

A consortium is required.
Each innovation project supported through FSTP must include at least one advanced technology provider, one manufacturing SME, and one end-market facing company.
Partners in these innovation projects must be from at least two different countries.

Geographic Requirements

Legal entities established in EU Member States and countries associated with Horizon Europe are generally eligible for funding.
Legal entities established in China are explicitly not eligible to participate in Innovation Actions (IA) under this program, in any capacity.
Proposals should contribute to strengthening EU's critical raw materials capacities and achieving Europe's open strategic autonomy.

Technical & Project Stage Requirements

Projects should demonstrate the expected outcomes by including a business case and exploitation strategy for industrialization.
Focus on small-scale demonstration, experimentation, or piloting of approaches, processes, or technologies.
Expected to achieve Technology Readiness Levels (TRLs) 6 and 7, meaning a technology demonstration in a relevant environment and a system prototype demonstration in an operational environment.

Application Process

APPLICATION PRACTICAL INFORMATION: Application Timeline & Deadlines

The submission session became available on 2025-05-22.
The application deadline is 2025-09-23 00:00:00+0000.

Application Procedure

Applications must be submitted via the Electronic Submission Service on the Funding & Tenders Portal.
This is a single-stage submission procedure.

Required Documentation & Materials

Proposals must include a comprehensive business case and exploitation strategy for industrialization.
Applicants must propose the amount of the lump sum contribution, providing a detailed breakdown per work package and, within each work package, the share assigned to each beneficiary and affiliated entity.
The detailed budget estimation should only include costs that would be eligible in an actual costs grant and must exclude ineligible costs.
Applicants must declare that they have followed their own accounting practices for budget preparation.
Standard application forms (HE RIA, IA) are available in the Submission System.

Project Implementation

For innovation projects receiving Financial Support to Third Parties (FSTP), an indicative duration of 18 months is suggested.
Projects should include a credible strategy for future full-scale deployment in the EU.
Where relevant, the development of training material to skill workers for new innovations is recommended.

Evaluation Criteria

EVALUATION CRITERIA: Impact

Proposals will be assessed on their expected impact, including enhanced market opportunities for participants and deployment in the EU.
Clear demonstration of targeted markets, estimated market size (EU and global), and how solutions match user and customer needs in a cost-effective manner.
Description of expected market position and competitive advantage.
Contribution to the mitigation of Greenhouse Gas (GHG) emissions.

Quality and Efficiency of Implementation

Evaluation of the quality and efficiency of the implementation plan, including the proposed resources and work packages.
Feasibility of reaching higher TRLs (Technology Readiness Levels).
Credible strategy to achieve future full-scale deployment in the EU (for TRLs 6 and 7).
Development of training material to endow workers with relevant skillsets to support the uptake and deployment of new innovations (recommended where relevant).
Integration of 'Safe and Sustainable by Design' (SSbD) framework for new chemicals and materials.

Excellence

Scientific and technical quality of the proposed innovation.
Innovative nature of the approaches, processes, or technologies for complex manufacturing operations, seamless data flows, valorization of local raw materials, and flexible micro-factories.
Uptake of innovative service-driven business models that maximize consumer value creation and lower total cost of ownership.

Cross-Cutting Themes

Consideration of durability, recyclability, repairability, and recycled content, in line with the Ecodesign for Sustainable Products Regulation.
Emphasis on socially and environmentally responsible production methods.

Compliance & Special Requirements

COMPLIANCE AND SPECIAL REQUIREMENTS: Financial Compliance

The grant operates on a lump sum basis, meaning financial checks, reviews, and audits will primarily focus on the technical implementation of the action and the fulfillment of conditions for releasing lump sum contributions per work package, rather than detailed cost reporting.
Beneficiaries are not required to document costs incurred for the action to the granting authority, but must comply with national accounting rules.

Regulatory & Ethical Standards

Projects must adhere to regulatory compliance, including the Ecodesign for Sustainable Products Regulation, considering aspects like durability, recyclability, repairability, and recycled content for textiles.
New chemicals and materials should be developed using the 'Safe and Sustainable by Design' (SSbD) framework.
Compliance with ethical standards and research integrity is subject to checks.
Labor standards compliance is implicit in the objective of 'socially and environmentally responsible ways' of production.

Strategic Alignment

R&I activities should contribute to strengthening EU's critical raw materials capacities along the value chain, reducing dependencies, increasing preparedness, and promoting supply chain sustainability and circularity, aligning with the Critical Raw Materials Act.
This topic implements the co-programmed European Partnership 'Textiles for the Future'.

Data & Knowledge Sharing

Where relevant, projects are encouraged to build on or seek collaboration with existing projects and develop synergies with other relevant European, national, or regional initiatives and funding programs.
Consortia are encouraged to consider voluntary contributions of data, indicators, and knowledge to relevant Joint Research Centre (JRC) platforms (INCITE, EIGL).

Specific Exclusions

Legal entities established in China are not eligible to participate in Innovation Actions.

Grant Details