Circular Economy Investment Fund CRNS Funding & Finance Seminar 25th April 2019 Zero Waste Scotland Our goal is to help Scotland realise the economic, environmental and social benefits of making best use of the world’s limited natural resources. Influence and enable change Direct interventions to effect change, commonly in the form of finance, business support, technical advice and training. Will Myles Project Manager Circular Economy Investment Fund

Circular Economy Investment Fund MAKING THINGS LAST KEEPING ITEMS IN CIRCULATION AT THE HIGHEST POSSIBLE VALUE THROUGHOUT IT’S LIFESPAN MAKING THINGS LAST, SCOTLAND’S CIRCULAR ECONOMY STRATEGY. EXAMPLES OF CE ALTERNAITVE OWNERSHIP & LEASING MODELS SERVICES SHARING RE-USE AND REPAIR OF GOODS RECYCLING CEIF THE CIRCULAR ECONOMY INVESTMENT FUND SEEKS TO SUPPORT WORK THAT WILL HELP ACCELERATE GROWTH OF THE CIRCULAR ECONOMY ACTIVITY IN SCOTLAND THIS FUND COMPRISES SUPPORT FROM THE SCOTTISH GOVERNMENT AND THE EUROPEAN REGIONAL DEVELOPMENT FUND. ADMINISTERED BY ZERO WASTE SCOTLAND, OFFERS INVESTMENT FOR SMES BASED IN SCOTLAND RESOURCE EFFICIENCY CIRCULAR ECONOMY ACCELERATOR PROGRAMME.

Investment £50K TO £1M OF PUBLIC FUNDING ELIGIBLE OPERATIONAL AND CAPITAL COSTS ELIGIBLE COSTS BASED ON NATIONAL RULES – PURCHASE OF VEHICLES, 100% STAFF & OVERHEADS ACTIVITY FUNDING MECHANISMS STATE AID EXEMPTION DE MINIMIS GBER – 47, 17, 18, 25

Eligibility SME AS LEAD LESS THAN 250 EMPLOYEES & LESS THAN €50M TURNOVER THIRD SECTOR & CIC INCLUDED AS LONG AS MEET SME CRITERIA ACTIVITY CONTRIBUTE TO THE CE THROUGH THE SAVING OF CARBON AND/OR ADD VALUE TO A WASTE PRODUCT – SEE NEXT SLIDE MEET AT LEAST 1 OF THE OBJECTIVES – SEE NEXT SLIDE DEMONSTRATED PROOF OF CONCEPT (E.G. FEASIBILITY COMPLETE) – WELL ALONG PATHWAY COMMERCIAL SCALE DEVELOPMENT ADDITIONAL & NOT DISPLACEMENT NEW NOT BUSINESS AS USUAL YOUR IMPACTS MUST BE LINKED TO THE FUNDED ACTIVITY sectors – other would be considered Bio economy (food and drink) – NOT FOOD PRODUCTION Built environment (construction and demolition). Energy infrastructure (oil and gas decommissioning, renewables, transmission). Remanufacture Re-use & Repair EFW/BURNING MATERIALS NOT IN SCOPE

Carbon Jobs Investment DELIVER ON THESE METRICS – THESE MUST BE STATED AT STAGE 1 & EVIDENCE AT STAGE 2 CARBON DIVERSION DIVERSION OF WASTE MATERIALS FROM A LOW VALUE OR CARBON GENERATING ACTIVITY ADDING VALUE TO A WASTE PRODUCT JOB CREATION NEW VOLUNTARY TRAINING PRIVATE LEVERAGED INVESTMENT INTERNAL EXTERNAL

Innovation Collaboration Commercialisation OBJECTIVES OF THE FUND INNOVATION NEW ACTIVITY IN SCOTLAND APPLICANT MUST EXPLAIN AND DEMONSTRATE THAT THEY MEET THIS CRITERIA THROUGH THEIR OWN MEANS – E.G. MARKET RESEARCH, TESTING THIS IS NOT BAU, ASSET REPLACEMENT, CONTINUITY FUNDING COLLABORATION SMES TOGETHER E.G. CRNS CONSORTIUM SME LEAD – CANNOT BE NON-SME OR PUBLIC SECTOR CAN BE A COLLABORATION ACROSS A SUPPLY CHAIN AND INCLUDE THE ABOVE COMMERCIALISATION PRESENT FINANCIAL MODEL FOR AT LEAST 3 YEARS INCOME COSTS CASH FLOWS BASED ON ROBUST AND REALISTIC ASSUMPTIONS AND EVIDENCE DEMONSTRATE A NEED FOR GRANT FUNDING TO ACCELERATE THE CE PROJECTS SHOULD BE ATTRACTIVE TO FOLLOW ON INVESTMENT WITHIN 5 YEARS

Applications 2 STAGE PROCESS STAGE 1 INITIALLY AN OUTLINE PROJECT PROPOSAL IS SUBMITTED TO ASSESS ELIGIBILITY SME SCOPE OF ACTIVITY WHILST THE FORM IS REASONABLY STRAIGHTFORWARD THE CORE IS A DESCRIPTION OF THE PROJECT OF AROUND 350 WORDS CLEARLY STATE WHAT THE PROJECT IS WHAT FUNDING IS FOR WHAT IMPACTS WHAT INNOVATION WHAT STAGE PANEL WHO WILL ASSESS BUSINESS AND PROJECT PROPOSAL (OBJECTIVES, CONTRIBUTION & STAGE) 30 WORKING DAYS TURNAROUND OUTCOMES – REJECT, INVITE, CLARIFICATIONS, REFERRAL (CEBS, CEDG, SECTOR MANAGER, INNOVATION, OTHER FUNDS/ORGS) STAGE 2 INVITED TO STAGE 2 BIG STEP UP IN DETAIL AND EVIDENCE CASH FLOW MODEL BUSINESS PLAN ASSUMPTIONS IN DETAIL EVIDENCE OF COLLABORATIONS AND COMMITMENTS FROM SUPPLY CHAIN OFFTAKERS 60 WORKING DAYS PANEL OUTCOMES REJECT CLARIFICATIONS RECOMMEND FOR FUNDING 9-12 MONTHS FROM OPP TO PROJECT CONTRACTING TO COMMENCEMENT FUND IS CURRENTLY OPEN FOR PROJECTS TO DRAW DOWN FUNDING UNTIL THE END OF JUNE 2023. THIS IS NOT A CLOSING DATE FOR APPLICATIONS. COMPETITIVE FUND – ONCE THE FUNDING IS ALL DRAWN DOWN IT WILL CLOSE CURRENT STATUS – CONTRACTED 39 PROJECTS, C. £5.5M, 62K TONNES OF CO2, 160 NEW JOBS & INVESTMENT OVER £6M PIPELINE OF STAGE 2 APPLICATIONS BREXIT

Projects Blythswood Care – bric a brac plus – identified a stream of unwanted products that could be captured, diverted from landfill & add value – supported to provide a collection service across chain of re-use outlets (mention Circulogic) Move On – Wood Recycling project - identied a gap in the East Coast market as well as providing a particular focus on providing this collection and sales service to SMEs Total Homes Cooperatives – Collaborative application – providing a service to housing associations and other social landlords – clean, clear and re-use as much as possible which improves on existing clear to landfill

Interested? Please contact us to find out more Contact before you submit an application – discussing at an early stage allows us to understand what you want to do and you to understand the requirements & details There may be other support available – CEBS, CEDG, Sector Manager, Innovation Workshops will.myles@zerowastescotland.org.uk