EU–PH partnership offers PHP 2.28M for green solutions

The European Union–Philippines Green Economy Partnership has launched the Circular Solutions Innovation Challenge, offering up to PHP 2.28 million in funding for innovative circular economy solutions from local micro, small and medium enterprises (MSMEs).

The initiative aims to accelerate the country’s shift toward a green, circular, and inclusive economy, and was formally launched in Pasig City by the EU Delegation to the Philippines, the Department of Environment and Natural Resources (DENR), and the Department of the Interior and Local Government (DILG), with support from the United Nations Development Programme (UNDP).

“The European Union–Philippines Green Economy Partnership will support innovative solutions to address environmental challenges at local level that will improve the lives of the people in the Philippines and create green jobs,” said Dr. Marco Gemmer, head of the Cooperation Section at the EU Delegation.

“We count on the knowledge, creativity and funding of MSMEs across the Philippines to put solutions into action and to promote circular economy,” Gemmer added.

Each selected innovation under the program will receive up to PHP 2.28 million (EUR 35,000) in funding and implementation support.

Proposals must align with local government unit (LGU) priorities on the circular economy—such as plastic waste reduction, organic waste management, and sustainable tourism—and should be technically sound, financially viable, and inclusive.

Selected projects must also show potential for replication across communities or scalable implementation.

“We are building together a future where sustainability is not just a goal but a shared responsibility, one that is deeply practiced in our local realities and communities,” said Assistant Secretary Lilian De Leon of the DILG.

Ten LGUs—Baguio, Pasig, Quezon City, Caloocan, Iloilo, Ormoc, Davao, Puerto Princesa, the Island Garden City of Samal, and Del Carmen—have already created Circular Economy portfolios identifying local system gaps and opportunities for innovation.

These initial pilot sites are expected to serve as models for other communities aiming to embed circular economy principles into local development.

“We’ve seen that when national and local governments, communities, and the private sector move together, the results are lasting and more impactful,” said Maria Dorica Naz-Hipe, assistant director of the DENR’s Environmental Management Bureau.

The launch expands earlier EU-PH funding efforts in April 2025, when 27 civil society organizations received support through Community Grants and Circular Economy Education & Behavioral Change Grants.

UNDP Philippines Resident Representative Dr. Selva Ramachandran emphasized the importance of collaboration across sectors.

“This approach has been useful in designing co-owned, context-specific solutions—from policy to community innovation, from green business models to behavior change—ensuring the transition is innovative, integrated, sustainable, and locally owned,” Ramachandran said.

The call for proposals is open until Sept. 26, 2025.

Interested applicants may submit their entries via https://go.undp.org/wgt.