Advancing circular logistics solutions in cities
Demonstrates circular urban logistics: reusable transport packaging, modular loading units and reverse logistics in city delivery.
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) , 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 and its related projects , as well as the Driving Urban Transition Partnership (DUT) ), 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.
What this means for cities and regions
Cities with logistics operators and retailers, linked to the Climate-Neutral Cities Mission and the Circular Cities and Regions Initiative. Topic budget €22.5 million; 3 grants expected; around €7.5 million per project. Opens 9 February 2027; closes 7 October 2027. Satellite positioning tracks reusable assets and optimises delivery and return routes, the data backbone of any reverse-logistics scheme.
Key facts
Submission deadline
7 October 2027, 17:00 (Brussels time)
Published
Opens
Programme
Total envelope
Per project
Expected grants
Co-funding rate
Eligibility
Eligible countries
Eligible NUTS regions
—Eligible organisation types
Min. consortium size
—Min. partner countries
—Eligibility notes
Type of action for this topic
HORIZON Innovation Actions (HORIZON Lump Sum Grant).
Who can apply
- Any legal entity (public body, private body, NGO, university, research organisation, SME, large company) established in an EU Member State (including Overseas Countries and Territories), or in a Horizon Europe Associated Country.
- The list of Horizon Europe Associated Countries is maintained on the EU Funding & Tenders Portal.
Consortium rule for this topic
Proposals must be submitted by a consortium of at least 3 independent legal entities, each established in a different EU Member State or Horizon Europe Associated Country, of which at least one must be established in an EU Member State.
Co-financing rate
- Research and Innovation Actions (RIA): 100% of eligible direct costs + 25% flat-rate indirect costs.
- Innovation Actions (IA): 70% of eligible direct costs (100% for non-profit legal entities) + 25% flat-rate indirect costs.
- Coordination and Support Actions (CSA): 100%.
The applicable Type of Action is indicated on the topic record in the Funding & Tenders Portal.
Restrictions and special cases
- Natural persons not eligible except sole traders.
- International organisations and the JRC are eligible.
- Other EU bodies cannot participate.
- Financial support to third parties is allowed where the topic explicitly provides for it.
EU restrictive measures (TEU Article 29 / TFEU Article 215) and EU conditionality measures (Regulation 2020/2092) apply. Currently this excludes Hungarian public-interest trusts established under Hungarian Act IX of 2021 (Council Implementing Decision (EU) 2022/2506).
Classification
Thematic domains
Activity types
Space relevance
Tier B — space tools are implicitly needed to deliver the call's outcomes.
Space services
Sources
HORIZON-MISS-2027-04-CIT-CCRI-04
Ingested September 20th, 2026
Sibling topics under this call
Innovative microgrids for improved energy system integration and efficiency in urban contexts
Demonstrates low-voltage DC microgrids in buildings and districts to integrate local renewables, storage and demand response in cities.
Hydrogen cities
Twins Hydrogen Valleys with cities that want to decarbonise hard-to-abate local industry and heavy transport and improve air quality.
Inclusive and climate resilient multimodal passenger hubs enhancing modal shift towards sustainable transport and shared mobility
Demonstrates climate-resilient, inclusive multimodal passenger hubs that shift city and intercity trips to sustainable and shared transport.
Funds groups of public buyers to run pre-commercial procurement of new solutions that cut greenhouse-gas and air-pollutant emissions in cities.
Related opportunities
Supporting sustainable and smart urban mobility in Europe (CIVITAS)
Funds the coordination of the CIVITAS initiative: sharing and scaling sustainable urban mobility solutions across European cities.
Energy-efficient urban and sub-urban public transport, complemented by shared mobility
Demonstrates energy-efficient urban and sub-urban public-transport solutions complemented by shared mobility for climate-neutral cities.
Transition to low-temperature heating solutions in multi-apartment buildings
Demonstrates the transition to low-temperature heating in multi-apartment buildings supporting climate-neutral city goals.