Call for Proposals to support Innovative Partnership Projects

Deadline: 23-Aug-23

The AL-INVEST Verde Programme opens a second call for innovative proposals for the financing of green economy projects for the benefit of Latin American SMEs.

The global objective is to promote sustainable growth and jobs creation by supporting the transition towards a low-carbon, resource-efficient and a more circular economy in LA.

The specific objective is that SMEs in LA use less polluting and more resource efficient products, processes, technologies, and services while more sustainable consumption patterns are adopted by countries. The idea is to turn climate and environmental challenges into opportunities. To do so, this Call for Proposals aims at supporting innovative partnership projects between Latin American and European institutions and organisations.

This call for proposals is divided into two lots:

• Lot 1 Sustainable, deforestation-free agri-food systems and value chains
  • Lot 1 aims at supporting deforestation free and legal agri-food supply chains to the EU. This call for proposals will provide opportunities to develop transparent and verified supply chains for products that do not contribute to deforestation and forest degradation, and thereby boost their competitiveness on the EU market and other global markets.
  • This call for proposals offers an opportunity to support small companies identify and fill possible gaps in practices, notably by upscaling the use of traceability and digital tools, to facilitate compliance with the new EU standards at their entry into application early 2025.
    • Examples for types of action
      • Proposals for innovative EU-LA partnership projects should present an integrated and comprehensive approach. Below is an illustrative and non-exhaustive list of possible types of actions:
        • Digital solutions on geolocation (including possibility of using Copernicus /Galileo) and traceability adapted to a diversity of producers (including smallholders) and MSMEs across palm oil, cattle, leather, soy, coffee, cocoa, timber and rubber supply chains to facilitate deforestation-free and legal trade flows to the EU in the main agri-food value chains,
        • Promotion of Public-Private Partnerships (PPP) and B2B initiatives to strengthen information flows across palm oil, cattle, soy, coffee, cocoa, timber, and rubber supply chains to the EU, including certification and incentive schemes for inclusive and sustainable agri-food value chains,
        • Training and capacity building of MSMEs involved in supply chains of commodities covered by the EU Deforestation Regulation.
• Lot 2 Transition towards low-carbon, resource-efficient and circular business models
  • Lot 2 aims to finance initiatives in partner countries that support capacity building and adoption of sustainable practices that favour the transition to low-carbon, resource-efficient and more circular economies in Latin America.
    • Examples for types of Action
      • Innovative partnership projects could promote sustainable economic practices in different phases such as (examples, non-exhaustive list):
        • Design phase use of eco-innovation and eco-design approaches supported by new green technologies, research and design of products with lower environmental impact in the entire life cycle, including use and end-of-life stage (utilising concepts as Eco-design, Cradle to cradle, Design for Recycling, etc.); new sustainable business models in the emerging green economy (e.g., sustainable tourism practices adding value to local sustainable production; uptake of new business models based on renting goods, etc)
        • Production phase introduction of clean energy sources and resource efficiency practices (e.g. energy, water, etc.); reduction of greenhouse gas emissions; industrial waste prevention/ minimisation/ reduction and management; promotion of circular economy and 3R practices (reduce, reuse, recycle approach) e.g. battery recycling and business models including for electric vehicles; promotion of responsible business practices; compliance to EU and ISO standards for products, industrial processes and services, introducing technical innovations for cleaner production, where possible with indigenous or locally produced technology; improved resource efficiency (materials, water, energy); embedding in environmental management systems (e.g. ISO 14001, EMAS, and others) and application of environmental accounting systems and reporting systems (ESG), low carbon source mining;
        • Logistics and distribution phase: lowering greenhouse gas emissions in the distribution of products and services to retailers and consumers; enhancing traceability of goods using digital solutions.
        • Consumption and end-of-life management Production and commercialisation of products/services with an ecological label and/or use of sustainability standards

Funding Information

• The overall indicative amount made available under this call for proposals is EUR 12,225,600.00.
• The Contracting Authority reserves the right not to allocate all available funds.
• Indicative allocation of funds by lot:
  • Lot 1: EUR 6,112,800.00
  • Lot 2: EUR 6,112,800.00
• Any grant applied for under this call for proposals must be between the following minimum and maximum amounts:
  • minimum amount: EUR 200,000
  • maximum amount: EUR 300,000

Duration

• Each partnership project must have a duration of 18 to 27 months.

Expected Outcomes

• Specific Objective 1
  • OB ES Number of MSMEs in deforestation-free or sustainable supply chains as a result of support adopting sustainable and/or digitalised economic practices through AL-INVEST Verde.
• Output 1
  • Number of MSMEs (EU&LA) participating in ALINVEST Verde (disaggregated by size and sector and region).
  • Number of MSMEs that obtain firm-specific sustainability standards and/or certification e.g. GMPs (Good Manufacturing Practices) (disaggregated by size and sector) or that meet EU market requirements.
  • Growth: Number of MSMEs reporting increased turnover as a direct result of support received by ALINVEST Verde (disaggregated by size and sector)
  • Number of MSMEs reporting savings in resource usage (disaggregated by size and sector), taking into consideration greenhouse gas or resource savings achieved through low carbon, circular economy or other actions.
  • Number of BMO (Business Membership Organization) staff trained on green and digital services (disaggregated by sex and age)
  • Number of new digital and green services developed by BMOs.
• Specific Objective 2
  • OB ES Number of full-time equivalent of green and digital jobs (disaggregated by sex) sustained/created as a direct result of support by ALINVEST Verde.
• Output 2
  • 2.1 Number of audience reached in events to disseminate the experience and insights provided by the innovative projects (disaggregated by sex and age and sector).
  • 2.2 Number of entrepreneurial encounters and B2B events (partly or fully) promoted by the programme. (disaggregated by size and sector).
  • 2.3 Number of MSME staff with increased knowledge in access to finance (disaggregated by sex and age).
  • 2.4 Number of participants reached at B2B events (disaggregated by sex, age and sector)
  • 2.5 Number of partnership agreements (sub-grant contracts) signed to support the transition to low-carbon and more circular economy in LA
  • 2.6 Number of bankable projects developed by MSMEs through BMOs.

Eligibility Criteria

• Lead applicant
  • In order to be eligible for a grant, the lead applicant must:
    • be a legal person, and
    • be non-profit-making, and
    • be established in a Member State of the European Union or in one of the following eligible countries in Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela. UK entities are no longer eligible to any EU funded projects.
    • This last obligation does not apply to international organisations; however, they cannot substitute an applicant from EU nor LA. International organisations may only act as a third partner, and
      • be a specific type of organisation:
        • Business support organisations representing the private sector, e.g. small and medium-sized enterprises. These include, inter alia, chambers of commerce, bi- or multilateral chambers, sector-specific trade, industrial and professional associations, clusters, cooperatives, as well as sector-based agencies working with MSMEs, universities and the business development centres located within the universities or,
        • Research centres, think tanks and other organisations focussing on innovation, digitalisation or transition to green economy, and
      • be directly responsible for the preparation and management of the action with the coapplicant(s), not acting as an intermediary.
  • Public agencies cannot apply as lead applicants, only as co-applicants. Natural persons are not eligible.
• Co-applicants
  • Co-applicants participate in designing and implementing the action, and the costs they incur are eligible in the same way as those incurred by the lead applicant.
  • Co-applicants must satisfy the eligibility criteria applicable to the lead applicant and their involvement must be reflected in the budget and the plan of action.
  • In addition, co-applicants are allowed to
    • be a specific type of organisation such as:
      • Business support organisations representing the private sector, e.g., small and medium-sized enterprises. These include, inter alia, chambers of commerce, bi- or multilateral chambers, sector-specific trade, industrial and professional associations, clusters, cooperatives, regulatory bodies and agencies promoting trade, investment and commercial activities as well as sector-based agencies working with MSMEs, or
      • Public agencies (typically, boards of investment, trade promotion agencies etc.) at local, national or regional level, or
      • Research centres, think tanks and other organisations focussing on innovation, digitalisation or transition to green economy
      • Co-applicants must sign the mandate form.

Ineligible types of actions

• The following types of action are ineligible:
  • actions related solely or mainly to individual sponsorship for participation in workshops, seminars, conferences and congresses;
  • actions relating solely or mainly to individual grants for studies or training courses;
  • purchase of computers, hardware and equipment (including vehicles, machinery) at large scale, financial support to companies, on-off conferences, support to political parties, actions including proselytising, actions which discriminate individuals or groups on grounds of their sexual orientation, religious beliefs or lack of them, or their ethnic origin.

For more information, visit AL-INVEST Verde.