European funds for the recycling plant 2024

Get European funds for recycling plants in 2024 through the PNRR C3 I1.D program, published in its final form by the Environmental Fund Administration. The program aims to build waste recycling facilities to meet the recycling targets in the circular economy package.

Program objectives

The PNRR C3 I1.D program has as its main purpose the acceleration of the process of expanding and modernizing waste management systems in Romania. It emphasizes separate collection, prevention, reduction, reuse and recovery measures, in order to comply with the applicable directives and the transition to the circular economy.

Investments under the National Recovery and Resilience Plan in the field of municipal waste management contribute 4.5% to the national target of reaching the 50% recycling and preparation for reuse of municipal waste rate by 2025. .

The amount of funding

You can obtain EU funds for creating a new recycling unit, diversifying the existing unit or expanding the capacity of an existing unit. The minimum financing amount is EUR 500,000 and the maximum is EUR 8,400,000 per project. The total financial allocation for the works intended for the construction of recycling facilities within the investment I.1, sub-investment I.1.d, is 220,000,000 EUR, the equivalent of 1,092,102,000 lei.

Submission period

The submission of funding applications will be done online starting May 14, 2024, at 10:00 a.m., and will close on August 16, 2024, at 11:59 p.m., within the maximum allocated budget.

Eligible CAEN Codes

Economic operators who are authorized to carry out at least one of the activities corresponding to the following CAEN codes are eligible applicants:

• 3821 – Treatment and disposal of non-hazardous waste
• 3822 – Treatment and disposal of hazardous waste
• 3832 – Recovery of sorted recyclable materials
• 3831 – Dismantling (disassembling) of end-of-use machines and equipment for material recovery
• 3811 – Collection of non-hazardous waste
• 3812 – Collection of hazardous waste

Specific conditions for obtaining EU funds

The beneficiary of the State aid is obliged to contribute financially with at least 25% of the eligible costs, thus limiting the regional state aid to a maximum of 75% of these costs. If the percentage of regional state aid is less than 75%, the beneficiary will need to complete the difference, ensuring an additional financial contribution to fully cover 100% of the eligible expenses. The project implementation period for the commissioning of a recycling plant may not exceed June 30, 2026 . . . The beneficiary must maintain the investment for a period of at least 5 years for large enterprises and at least 3 years for SMEs.

Eligible expenses

Eligible expenditure for obtaining EU funds includes:

• Expenses for the purchase and installation of recycling machinery, installations and equipment necessary to fulfill the objectives of the project.The specialized vehicles necessary for the activities within the project, purchased under this measure, will be equipped with the best available technology from the point of view of environmental compliance.
• Expenses for the construction of the necessary constructions for the location and installation of the purchased machines, installations and equipment, with the related equipment - electrical installations, natural gas supply, heating, ventilation, air conditioning installations (related only to the construction premises).
• Renewable energy solutions are eligible within the limit of 5% of the total of other eligible expenses and will be highlighted separately in the general estimate.
• Expenses with the acquisition of intangible assets.

ineligible expenses

The expenses related to the purchase of land, second-hand recycling equipment, commissions, taxes, VAT, consulting expenses, for obtaining approvals and authorizations, etc. are not eligible.

Selection criteria

The selection of projects to be financed to obtain EU funds in the field of waste recycling will be done according to several criteria, but the main ones are:

• The degree of maturity of the project – projects without works receive this score from the start.
• Recycling result – the proportion of recycled material in the total.
• Turnover - only businesses with a turnover of at least 1 million lei receive a score here.
• The type of recycled waste – municipal waste will get the highest score.
• The degree of digitization of investments – for maximum points, the digitization process must be more than 70% of the total budgeted.

Types of recycling factories

The types of recycling plants that can be established or modernized through European funds in 2024 include:

• Municipal Waste Recycling Factory (paper, cardboard, plastic, PET, glass)
• Ferrous and non-ferrous metal recycling factory
• Tire Recycling Factory (Tiles)
• WEEE Recycling Factory (Electrical and Electronic Equipment Waste)
• Disposable Vehicle Recycling Factory

Conclusion

Accessing European funds for recycling factories in 2024 is a significant opportunity for the development of the recycling infrastructure in Romania. By complying with the eligibility and selection criteria, companies can benefit from substantial funding to contribute to the recycling and sustainability objectives of the European Union.