Circular economy is an economic model which saves and renews natural resources and energy, prolongs the use of materials and products, and reduces waste. In the last 50 years, global resource consumption has quadrupled, with unsustainable increases in energy consumption, greenhouse gas emissions, and the amount of waste generated. Currently, only 7.2% of global economy is based on circular principles[1], and these principles will be a essential for a sustainable economy of the future.

In order to encourage and promote the circular economy in the local context, the Ministry of Environmental Protection and UNDP partner to implement the “Reducing the carbon footprint of local communities by applying the principles of the circular economy in the Republic of Serbia – Circular Communities” project, with the financial support of the Global Environmental Fund (GEF), from March 2022 to March 2027. The aim of the project is to encourage development and support the implementation of circular initiatives, business models and products of public and private companies, in order to reduce the carbon footprint of local communities in Serbia.

Simultaneously, the National Strategy for Gender Equality (2021-2030)[2] emphasizes the need to involve women in promoting and advancing the model of circular economy as a way to reduce the gender gap in employment and economic participation. The application of the principles and values of the circular economy provides an opportunity for empowering women as key actors in sustainable change, promoting economic independence and resilience.

Research shows that women in entrepreneurship often face limited access to financing, markets, and mentorship, which affects their ability to develop sustainable business models. Women make up only 31.2% of the total number of entrepreneurs in Serbia, and their enterprises are mostly micro-enterprises operating with limited resources. They are represented in trade with 24.2%, in manufacturing with 14.2%, and in service activities with 11.7%. The self-employment rate among women is three times lower compared to men, indicating systemic barriers to the development of their businesses. Limiting factors include lack of access to credit, the fact that women in Serbia own only 25% of land and real estate, as well as the gender pay gap, which impacts their ability to invest in the growth of their businesses.

Women are underrepresented in industries that have the potential for the application of circular business models, such as waste management (27%), energy (25%), and construction (10%). Nevertheless, there are significant opportunities for women-owned businesses in the areas of renewable energy, sustainable agriculture, production of eco-friendly products, and waste recycling. The application of the principles and values of the circular economy can contribute to the economic empowerment of women, as it opens up opportunities for the development of innovative business models and reduces dependence on traditional sources of income.

Encouraging women’s entrepreneurship contributes to reducing gender inequality and fostering sustainable development. A 2019 International Monetary Fund (IMF) study titled “Women and Growth” [3] provides a detailed analysis of the economic benefits of reducing the gender gap in the workforce. According to the research, reducing gender inequality can lead to a significant increase in Gross Domestic Product (GDP), especially in countries with pronounced gender inequality. For instance, in countries with the highest gender inequalities, closing the gender gap could increase GDP by an average of 35%, with about 7–8 percentage points of that growth coming from increased productivity due to gender diversity.

Through the development of entrepreneurial initiatives that integrate the principles and values of the circular economy, women can enhance their businesses, strengthen their market position, and become active participants in Serbia’s green economy. Improving access to financing, mentoring programs, and market opportunities enables women to develop innovative and sustainable business models, which is crucial for long-term economic growth and inclusive development.

For this very reason, within the framework of the Circular Communities project in Serbia, a Public Call is being launched to strengthen the role of businesswomen in the circular economy. This initiative represents a significant step towards a gender-inclusive economic transformation, enabling women to be leaders in Serbia’s progress towards a more sustainable economy.

[1] Circularity Gap Report 2024, извор: https://www.circularity-gap.world/2024

[2] Извор: СТРАТЕГИЈА за родну равноправност за период од 2021. до 2030. године.pdf

[3] https://www.imf.org/external/pubs/ft/fandd/2019/03/pdf/fd0319.pdf

The aim of this call is to empower women in the business sector by encouraging the development of new and innovative solutions and business models that promote the principles and values of the circular economy in practice. Through this call, financial and professional support will be provided to women in strengthening their businesses on the path toward economic and environmental sustainability.

The call particularly encourages applications from:

• Micro, small, and medium-sized limited liability companies (LLC) where women are owners or have at least a 51% ownership stake,
• Sole proprietorships owned by women,
• Cooperatives where women make up at least two-thirds of the members,
• Registered agricultural holdings led by women,
• Startups founded by women that are developing innovative solutions in the field of the circular economy,
• All legal entities with the status of social entrepreneurship where women have at least two-thirds ownership or where at least two-thirds of the leadership positions are held by women.

All applicants must be registered in the Republic of Serbia no later than the opening of this call, i.e., by March 8, 2025, in accordance with national legislation.

Applicants can apply for this public call either independently or in a consortium.

The main applicant is also the main beneficiary of the funds under this call. In the case of a consortium, the cooperation between partners must be formalized by a Memorandum of Understanding, Consortium Agreement or Declaration of partnership, which must be signed and submitted with the application.

Each individual entity can participate in only one application for this public call, either independently or as the main applicant or a partner in the consortium.

Important note: Applications will not be accepted if the applicants or partners are involved in:

• The production, sale, or distribution of tobacco and tobacco products,
• The production of alcoholic beverages,
• The production, sale, or distribution of weapons.

The evaluation panel will evaluate all submitted applications and then select up to the 10 highest-ranked initiatives, that will receive the innovation award, i.e. circular awards.

Circular awards valued up to 20,000 USD (in RSD equivalent) will be granted following the signing of the Award Contract between UNDP and the award recipients, according to the following schedule:

• The first tranche, amounting to 60% of the total Circular Award value, will be disbursed after the signing of the Contract between UNDP and the applicants, and upon submission of an Operational Plan.
• The second tranche, amounting to 40% of the total Circular Award value, will be disbursed following a Mid-term Progress Report and the implementation of activities in the first 6 months.

Recipients of the funds are not required to co-finance their projects, as the planned two payments will advance cover the implementation of activities according to the timeline outlined in the application.

The funded innovative solutions and business models must be implemented within 12 months of the contract signing.

Only one award can be granted per application. A total of up to 10 circular awards will be granted.

Please review the Innovation Award Contract template before applying to this Public Call – which is available HERE.

• Agriculture and Food Industry: Use of organic residues, Transition to renewable materials, “Waste to resource” models, More efficient use of water and energy
• Tourism and Hospitality: Circular approaches to resource management, Green tourism concepts, Eco-labeling, Sustainable gastronomy, Reduction of plastic use and waste generation
• Textile Industry and Fashion: Use of end-of-life materials, Redesigning products for easier repair and recycling, Establishing circular business models, “Sharing economy” (renting, swapping, second-hand)
• Service Sector and Small Manufacturing: Repair and reuse of products, Exchange and rental models instead of traditional sales, Introduction of environmentally friendly packaging, Eco-friendly products created through industrial symbiosis processes, etc.

Examples of good practices can be found on the website: https://www.cirkularnezajednice.rs/publikacije-projekta/ , and specific examples of women’s entrepreneurship at the following web addresses:

1. Paper – handmade from recycled cigarette packs
2. Paper as art
3. Bioidea soaps

Projects can include:

Development of New Circular Products and Services:

• Creating innovative sustainable products that use renewable or recycled materials.
• Improving existing products to extend their lifespan, facilitate repairs, or enable multiple uses.
• Developing services based on circular principles, such as “pay-per-use” models, rental instead of purchase, and product exchange systems.
• Introducing environmentally friendly packaging and redesigning products for easier recycling or reuse.

Proof of Concept, Prototype Development, and Digitalization:

• Development of new technologies and processes for more efficient resource use.
• Design of pilot projects and prototypes that enhance sustainability in manufacturing, service sectors, or supply chains.
• Introduction of digital and smart solutions for material tracking, blockchain for circular processes, resource exchange platforms, and smart resource management.

Business Models for the Circular Economy:

• Development of new circular supply chains that reduce waste and increase resource use efficiency.
• Introduction of circular financial models, such as joint investments, crowdfunding for circular initiatives, and support models for small producers.
• Creating business networks and partnerships for the circular economy that include small producers, artisans, and local communities.

This list is only an illustration of possible projects and does not represent a limitation for applications.

Priority Challenges Supported by This Call:

• Empowering the role of women in applying the principles and values of the circular economy through funding and networking.
• Introducing innovations in traditional industries such as the textile industry, agriculture, construction, tourism, and service sectors.
• Developing new circular business models that enable more efficient use of materials and reduce waste generation.

With this call, we aim to support the strengthening of women’s roles in sectors that implement sustainable business practices and create new opportunities for green jobs.

The Application form shall be completed in the Serbian language, while the summary of the proposed initiative within the form itself shall be described in the Serbian and English languages. It is important that the applicants respond all questions precisely and clearly, and that when describing the initiative, they clearly indicate what the expected, measurable outcome of the initiative is (expressed through one key indicator).

Applications should be submitted via the following link: https://forms.office.com/e/4zfnfFdJMK

Along with the application form, which is completed online, please attach the following documents via email to info@cirkularnezajednice.rs :

• A reference letter from the bank where the applicant has an account. The letter should confirm the following:
  • That the applicant is a client of the bank,
  • The duration of the banking relationship,
  • That the client has fulfilled their obligations and conducted transactions properly so far,
  • That the client meets the solvency requirements;
• A completed, signed (with a stamp), and scanned intellectual property rights declaration, in PDF format;
• In the case of a consortium, a Memorandum of Understanding or a Consortium Agreement must be provided.

The deadline for submitting applications is May 9, 2025, by 3:00 PM.

The UNDP team will primarily accept or reject applications based on the criteria of fulfilment of the following administrative requirements:

• Fulfilment of the formal requirements of the consortium submitting the application (completed application form and submitted supporting documentation);
• The response of the initiative, that is, service to the priority challenges defined by this Public Call.

If all technical criteria are met, the UNDP team will accept and forward the proposals to the Evaluation Panel, which will evaluate the applications according to the proposed evaluation criteria.

The applicant shall provide a written confirmation, to accompany their application confirming to UNDP that they hold all intellectual property rights which are reasonably foreseeable as necessary for achieving this Public call’s goals, or a manner in which these rights shall be resolved in conformity with the call goals. Furthermore, the applicant is required to confirm to UNDP that no intellectual property disputes have arisen from the innovative idea.

The certificate should properly address and explain the intellectual property rights between the consortium members. In the case of other intellectual property issues, the applicants are required to disclose all information to UNDP in a timely manner prior to project evaluation.

https://www.cirkularnezajednice.rs/wp-content/uploads/2025/03/Deklaracija-o-pravima-intelektualne-svojine.docx

Each application will be evaluated by at least two independent experts, whereupon the Project Board, based on the Evaluation Panel’s report, will make a final decision on the awards, i.e. circular awards.

A maximum of ten (10) projects will be awarded Circular Awards. UNDP will provide information on the awarding of the Circular Award and a draft Contract to the main applicant for signing by September 1, 2025. The main applicant, before signing the Contract, needs to prepare an Operational Plan for the implementation of the initiative. The official award ceremony for the recipients of the vouchers will be organized in the fall of 2025.

After the contracts for the awards are signed and the first tranches are disbursed, a Circular Meeting will be organized in the spring of 2026 to report on the progress of project implementation and to verify the conditions for the disbursement of the second tranche.

At the end of 2026, a large final conference of the “Circular Communities” project is planned, where the exchange of experiences among the awarded teams will be facilitated. All recipients of the circular awards will need to submit a brief narrative report on the success of their initiatives, as well as an overview and description of any obstacles encountered during the implementation of the proposed initiative. The deadline for submitting the report is 12 months after the contract signing.

For more information, visit the www.cirkularnezajednice.rs. website

The contact person for this Public call is Ana Mitić-Radulović

If you have questions, please write to us at the e-mail address info@cirkularnezajednice.rs,  or call us at phone number +381 63 1018 079.

Application Form – Download

Form – Innovation Award Agreement – ​​Download