1.2 Strategic Alignment: North Star, Tipping point, Learning Question and Milestones 

TRACE’s North Star is a regenerative circular society by 2050 — where we have moved beyond the linear economy, resources circulate in closed loops, waste is eliminated, and natural systems are restored. This transformation supports Denmark’s goals of a 70% greenhouse gas reduction by 2030 and net-zero emissions by 2050, and requires systemic innovation, deep collaboration, and a fundamental redesign of how we produce and consume. 

To accelerate this transition, TRACE builds scalable circular systems, connects actors across value chains, and generates actionable knowledge that enables systemic change — from pilots to policy, and from insight to infrastructure. 

Tipping Points, Learning Questions, and Milestones 

As set out in the TRACE Impact Framework Version One, each WSFA is guided by a tipping point, a learning question, and a set of preliminary milestones. 

• Tipping points are major systemic shifts in markets, behaviors, or infrastructure that bring us closer to the North Star. 

• Learning questions define what we need to understand in order to reach the tipping point. 

• Preliminary milestones provide directional guidance on what progress might look like across the WSFA — they are not fixed deliverables, but shared reference points for learning-based collaboration. 

This call addresses Tipping Point 2: 

Tipping Point 2: Transparent – Circular Business Models Become a Viable Choice.

A tipping point is reached when circular economy business models are no longer seen as experimental, but as viable, desirable, and feasible across sectors. Transparency, trusted data, and aligned incentives make circularity the obvious choice. 

TRACE Learning Question for Tipping Point 2:  

How can we create the conditions for circular business models to become the preferred option across sectors? 

Supportive questions include: 

• What types of data and performance indicators build trust in circular business models? 

• What barriers prevent adoption — and how can transparency reduce these? 

• How do we align policy, market incentives, and consumer understanding? 

• What makes a PoC CE System transferable and convincing? 

Preliminary TRACE Milestones (for reference) 

Applicants must relate their own project milestones to these directional milestones for the WSFA: 

• By 2029: One scalable PoC CE System for healthcare disposables is validated in practice. 

• By 2030: Contributes to 55% non-virgin material use in healthcare. 

• By 2050: Circular systems integrated into hospital operations and public procurement practices. 

Final milestones will be refined post- funding decision award, in dialogue with the TRACE Secretariat and Board, to ensure strategic fit and scientific rigor. 

What Applicants Must Do 

To align with this strategic logic, applicants must: 

• Identify the tipping point and learning question their project addresses 

• Explain how their project will generate knowledge relevant to that learning question 

• Propose project-specific milestones that are: 

• Forward-looking and aligned with the learning logic 

• Within the project’s sphere of influence 

• Based on learning outcomes, not just activity outputs 

• Measurable (qualitatively or quantitatively) and time-bound 

• Clearly related to TRACE’s preliminary milestones 

This requirement is defined in:  

• TRACE Impact Framework Version One 
• Assessment Criteria 

All projects must designate a Principal Investigator (PI) and meet the following requirements: 

Participate in Work Package 1 (WP1) — including learning, data, and implementation activities. Each project must allocate 2% of its TRACE funding to WP1. For more detail see “Work Package 1 – TRACE Collaborative Platform”, in section 6.  

WP1 contributions include: 

• • Shared impact data and use of the TRACE CRL metric (TRACE Data Space) 

• • Participation in capacity-building and cross-project learning (TRACE Academy) 

• • Communication and outreach activities (TRACE Communication) 

• • Integration and reporting, led by the Project Implementation Lead (PIL) 

• Align with the relevant tipping point(s), learning question and milestones for the call 

• Build on infrastructure and learning from previous TRACE Pools (1–4) 

• Share relevant data with the TRACE Secretariat (IPR remains with the consortium unless otherwise agreed) 

• Ensure a project duration of at least 12 months, ending no later than June 1, 2028 

TRACE projects are funded under conditions equivalent to Innovation Fund Denmark’s Grand Solutions model. TRACE reserves the right to request adjustments to project scope or budget during negotiation to ensure strategic fit and complementarity across the WSFA portfolio. 

Application Template will be uploaded in August.

Administrative Review 

Before external review, TRACE will check that all applications meet the formal requirements described in the call text. Incomplete or non-compliant applications will be rejected without further evaluation.

The evaluation process is described in detail in “Process for Evaluation and Investment“ - see section 6. 

External and Internal Evaluation 

• Criterion 1: Strategic Fit is assessed by TRACE-appointed evaluators. This includes alignment with the TRACE Roadmap (RM 2021) (RM2025), Impact Framework, tipping point, and learning logic. 

• Criteria 2–4: Quality of the Idea, Impact, and Quality of Execution are assessed by external international experts. 

Applicant Consultation 

Applicants will receive the external expert evaluations and will be invited to submit a written response addressing Criteria 2–4 before the final funding decision. 

Final Decision 

The TRACE Secretariat integrates evaluation results and applicant responses and submits recommendations to the TRACE Board of Directors. 

 
Final funding decisions will: 

• Prioritize alignment with TRACE’s strategic goals 

• Ensure a balanced project portfolio across value chains and topics 

• Be subject to compliance review by Innovation Fund Denmark 

TRACE may adjust the project scope or budget during contract negotiation to ensure alignment with strategic goals and complementarity across funded activities. 

Applicants will be notified of the outcome via email. Rejection letters will include reference to the relevant assessment criteria. 

Objections 
Objections to the submission or evaluation process may be sent to Innovation Fund Denmark: 
📧 kontakt@innofond.dk 
These will be considered as part of IFD’s oversight of the Investment Agreement with TRACE.

For inquiries related to this call, please contact: 

• Arvid Aagaard Sihm, Head of Strategy and Funding (aas@trace.dk | +45 2986 3638) 

• Anette Juhl, Director (aj@trace.dk | +45 2160 4041)