Circular Economy Business Support and Innovation Fund – Round 3 – Information Bulletin

Last updated: 4 April 2023
Share
Prior to 1 July 2022, these funds were named the Recycling Victoria Business Support Fund and Recycling Victoria Innovation Fund.

This information bulletin provides information not covered in the guidelines of Circular Economy Business Support Fund and Circular Economy Innovation Fund – Round 3.

We will update this page as we receive questions.

Information session

A general information session for Round 3 of the Circular Economy Business Support Fund and Circular Economy Innovation Fund was held online on 15 March 2023.

A copy of the presentation slides can be downloaded here:

Watch the recording below:

Questions and answers

This page will be updated regularly based on questions we receive.

General eligibility

My project is focused on ‘upcycling’ is it eligible?

Upcycling is a term that can be poorly defined and is often misinterpreted. It is important to ask if your solution creates more value or is it devaluing material? Also note that the available grants do not fund products made from recycled content, for example a jumper made of recycled water bottles. It’s hard to justify this as ‘upcycling’ as those bottles now cannot go back into the food system and are devalued. There is also limited scope for that jumper to be recycled and it's likely to end up in landfill – again devalued. We are after solutions that improve environmental outcomes so it is also important to ask ‘what’s next’ with a product or material after the initial use.

Upcycling is most relevant to the biological circular economy (such as food and organics) where value is retained, or new value is created and environmental outcomes are improved. For example, a surplus food that otherwise would have gone to animal feed or compost but is being kept at the level of human consumption. If you’re unsure, please reach out to our grant's enquiries line.

Why isn’t post-consumer upcycling in-scope?

This is not in-scope for several reasons including:  

  • The Fund is primarily established to support businesses to prevent waste and improve materials efficiency. 
  • The delineation between upcycling and recycling for post-consumer upcycling is more difficult than at the pre-consumer stage, where materials are generally better suited to upcycling with minimal additional processing. 
  • Other State and Commonwealth programs provide support for recycling and upcycling of post-consumer products.   

I have this project, where I recycle x …?

Please refer to section 2.4 of the guidelines as recycling projects will not be considered for this fund. Several new State and Commonwealth programs have been developed to support recycling. These programs provided additional support to Victoria’s recycling market and may continue to do so in the future. To reduce duplication and to ensure our programs support a range of circular economy outcomes beyond recycling.

Please see Sustainability Victoria’s grants and funding section for other grant programs or contact our recycling investment service - invest@sustainability.vic.gov.au

We are making a product out of recycled content, is it eligible?

Refer to section 2.4 where Recycled content products (research, development, demonstration and commercialisation, standards, and specifications) are ineligible. SV has offered other programs focused on recycled content products.

If we use recycled materials instead of virgin materials in our products, can we apply for these grants?

No as recycled content products are not eligible. An example of a similar project that could be supported is: replacing plastic milk bottles with glass bottles that are delivered full, collected when empty, and reused. In this model, the new delivery-and-collection service is an example of a ‘reuse’ model where the packaging (the bottle) is reused repeatedly without needing to be recycled.

We are using biochar to convert waste to energy, our project primarily focuses on bioenergy and bioenergy fuels, can we apply for these grants?

Please refer to section 2.4 of the guidelines as waste to energy projects will not be considered for this fund. There is policy and program support for waste to energy, bioenergy, and bioenergy fuels in Recycling Victoria. Funding may be released to support these projects in the future.

Please see Sustainability Victoria’s grants and funding section for other grant programs

Why aren’t community and councils focused initiatives eligible?

CEBIC is focused on industry market solutions and enabling business to transition with the aim to stimulate the development of market solutions that would likely result in commercial opportunities for industry and more circular offerings in the market.

Please see the CE Communities and CE Councils funds that SV offers. Community-focused initiatives are less focused on the commercial side and more focused on community outcomes such as improved social inclusion.

Is the Innovation Fund focused on technological innovation or could the projects be a combination of technology + social innovation?

The fund is not restricted to technological innovation. It is focused on research and development of new market solutions that aim to improve environmental outcomes of products, services, industries, supply chains or systems. This may be a social technological or business model innovation.

The Innovation could be a:

  • business model Innovation – where a new product, process, service or system is created
  • technical Innovation – where a new technology is developed
  • social Innovation – where new capabilities, connections or relations are created.

For the Innovation Fund, what evidence do I need to supply to justify that the solution is innovative and has not been done before in Victoria.

You need to specify what element of your project is innovative, and then justify why that element is a first for Victoria.

Any evidence of market research done to assess if it exists in Vic could support adding weight to your claim. You could provide evidence of IP ownership for an innovative process that has been applied elsewhere. It may be a research report or industry action report. It could potentially be attachment of PR like a news article. It may also be a letter of support from a third party.

Can we find out what projects have been funded in the past?

For a list of previous recipients, go to the webpage CEBIC – Funded projects. Please note that guidelines change between rounds.

Can we find out what projects were not funded (in previous Rounds)? 

No, we do not disclose the details of unsuccessful applications. 

What is the difference between remanufacturing and recycling?

Remanufacturing preserves the entire form of a product, whereas recycling involves breaking the product down into its component parts and melting, smelting or reprocessing them into new forms.

Please refer to the glossary of the guidelines for further definitions.

Application

Can I submit applications for more than one project?

An application cannot include multiple projects in one application form. If you have different projects, please submit one application per project. Projects must not be dependent on another project application being funded.

Can my project have more than one activity?

Yes, often projects include multiple activities to reach the desired outcome and purpose.

You can apply for multiple project activities within one project. For example, a materials efficiency assessment; a feasibility study; a pilot project or trial. Please do not submit one application for multiple projects.

Can I submit an application for the same project for both the Business Support Fund and the Innovation Fund?

The guidelines differ between the BSF and IF funds, including the focus on activities and costs, eligibility criteria and partnership requirements. You should review the guidelines carefully and only pick the fund that is most aligned to your project. It’s a competitive process that considers alignment to the fund criteria. You also should not submit a separate application for both funds where one project relies on the other getting funding.

Can collaborative partners be outside of Victoria?

Yes, and so can a lead applicant, as long as at least 50% of the project activities are in Victoria and all the benefits and outcomes occur for Victoria (for example, waste avoided, jobs created).

Can you apply for a project if we are already in progress, and you are looking for funding to expand?

Funding is only available for projects that have not yet started. You may develop a project with a set of activities to expand. You cannot claim any retrospective funding for activities that have already occurred.

Can you apply if you are currently delivering a successful grant (from round 1 or 2)?

Yes, you can, if it is for a different set of activities that is not dependent on the completion of a current project. The project must be delivered within the set time-frame, so keep your resourcing in mind.

If the other grant was for a project and activities that are different to your proposed application in Round 3, this would be eligible. When applying for this fund, you will need to disclose this information.  

Would projects that require less than the minimum grant amount be eligible for funding (even if the project may meet the objectives and outcomes)?

No, unfortunately all projects must apply for at least the minimum grant value. This is due to the administration required to manage a grant program as we are a small team and cannot process many smaller contracts. This may be reviewed in subsequent funding rounds.

When will a project be able to start and when will it need to be completed by?

Once successful projects are notified, there will be a process of negotiation for which we develop contract milestones. This can take some time, depending on the project complexity and requirements. It is likely that projects may commence in September. Projects must be completed until 15 December 2024. This is a hard deadline, so please ensure you’re considering what is achievable within the grant timeframe to deliver a successful project. We do not have allowance from projects to go beyond 15 December 2024.

In your application form, under the risk section, you will need to address how you will mitigate delays to delivery. The assessment panel will consider the ability of a project to be completed on time.

Are there any consultants who can assist with our applications? 

As this is a contested application process, we are unable to consult or assist you with your application. There are external consultants who could assist but we are not able to make recommendations. To support your search, you may wish to search for ‘sustainability consultants’ or ‘environmental consultants’ in Victoria or Australia.

Will you accept my late application?

No, we are not able to accept any late applications. Please ensure that you complete your application early and submit well before the closing date to also allow for any technical difficulties.

Can you review my application?

As this is a competitive, merit-based application process, we are not able to review your application before you submit it. If you have any questions, please contact the Grants Enquiries team – grants.enquiries@sustainability.vic.gov.au

Could you please explain what applicants need to consider when it comes to the Local Jobs First Policy (LJF) as mentioned in the guidelines?

The Local Jobs First Policy is applicable when the Victorian Government contribution meets the monetary threshold of $1 million. The Policy is about creating opportunities for local businesses and workers with the aim to develop the local industry and grow the next generation of skilled workers in Victoria.

What information should I include under the section ‘how does your project contribute to the transition of Victoria to a circular economy’ page 4 of the application form?

For the question ‘Explain how your solution demonstrates circularity’.

You should describe and justify how your project prevents, minimises and eliminates waste and pollution, and/ or keeps products and materials at the highest value – for longer. You may describe how your project relates to a circular economy principle and how it applies a circular business model or practice to achieve the above.

Under ‘Explain how the solution will provide better environmental and economic outcomes than existing market offerings'.

You should demonstrate how your projects addresses a problem and creates a solution that promotes better environmental outcomes for products, services, industries, supply chains or systems compared to the current status quo. You may also touch on what economic outcomes (for example getting more value out of resources, creating more jobs).

Project Outcomes

Is there a requirement for a certain number of jobs created for the project?

This will be considered under 3.1 Assessment criteria, under the weighting of 'What (30%)': How many Direct Jobs will your project create? Therefore, creation of jobs will be considered as a merit criterion (Is there a requirement for certain number of jobs created for the project?) There is no requirement for a set number of jobs, however you must provide an accurate estimation and list the title of each direct job that relates to the project in the application form.

Can a project include a mix of fund objectives?

Yes. Projects can deliver on a range of fund objectives. It shall be noted that projects must contribute to 2 or more of the following outcomes:

  • Creation of new Circular Products and Services
  • Avoidance of waste materials to any waste or Recycling destination
  • Increase employment through direct creation of jobs
  • Increase capacity to extend the useable life of products
  • Reduced greenhouse gas emissions
  • Improve capacity of industry for acting on sustainability

How are fund outcomes measured, noting that projects must deliver at least 2 (for example avoidance of waste materials to any waste or recycling destination and creation of new circular products and services).

See page 4 of the application for details on the metrics that we use to capture each outcome. The target metrics you select and put in your application form will be used to evaluate your project. It is important to keep your proposed metrics (such as the number of FTE created) as accurate as possible, as these are used as targets to evaluate your project. Metrics that seem inflated may receive questions for further clarification.

Do the targets need to be met within the first year of the project? OR is it sufficient if those targets are met once the project is complete?

Targets are related to project outcomes (benefits delivered by the proposed project). Project outcomes are likely to happen once the funded activity is completed (e.g. a processing facility is built). During the project, all these targets must be completed (e.g. the activities you seek funding for, with evidence of their completion).

Co-contribution and financial

What is meant by in-kind co-contribution?

An In-kind Contribution is a contribution of a good or a service other than cash.

In-kind Contributions should include the cost for activities that are directly related to delivering your project. Examples include:

  • staff time to manage project implementation (project management and installation costs that utilise existing internal resources);
  • time spent on project activities by volunteers; and
  • donated goods or services related to the project.

The following activities cannot be considered as In-kind Contributions:

  • operating expenses that are not directly associated with delivering the project; and
  • opportunity costs such as staff ‘downtime’ during the installation of equipment or implementation of activities.

Applicants must fairly justify how they determined the dollar value for In-kind Contributions.

How are in-kind contributions measured?

You need to make your own reasonable estimation, as this may vary between different industries and sectors. If your project is funded, you would need to provide evidence of the In-kind Contributions provided to the project as part of your reporting. Any inflated figures will be followed up for more detail.

As an example, the In-kind Contribution of a volunteer’s work should be calculated would be based on the equivalent costs that would have been incurred if the person was receiving remuneration as a paid employee or contractor.

Can my co-contribution be made up of staff time and resourcing contributed to the project?

Yes, this is considered “in-kind contribution”.

Who can provide the project’s co-contribution?

The co-contribution can be provided by the lead applicant and/or project partners.

Will SV fund my staffing costs for those staff working on the project?

For both of the Fund, staff costs directly related to the project can be included in the total project costs.

  • Costs that are shown to be for new or additional staff, or for existing staff who are dedicated or specific to the project, could be eligible for SV funding.
  • Costs related to existing staff who are not dedicated or specific to the project may be included as part of the in-kind co-contribution.

How are grant payments made?

Grant payments will be paid by milestones, and payment is made in arrears once all the evidence is provided and Sustainability Victoria is satisfied that the milestone is complete.

ABN requirement

Would operating an ABN under an unrelated business be acceptable? Even if the new business venture is relevant to the funding?

No, the ABN must be related to the business delivering the project.

Can a start-up apply if they have been in operation for 2 years?

Yes, if you meet the eligibility criteria under section 2. Applicants must be legally constituted organisations with a current ABN that has been active for a minimum of 2 years by the application closing date.

Contact us

We cannot review drafts or provide feedback.

Phone Monday to Friday from 10:00 am to 4:00 pm.

In the email subject line, use the grant name Circular Economy Business Support Fund or Circular Economy Innovation Fund.