1. Strategic Purpose and Framing
1.1 Call Purpose and Justification
This call establishes a systemic impact research initiative aimed at developing scientifically validated methods for measuring circular economy impact. It contributes to international research and supports public and private stakeholders — including companies, institutions, and researchers — who need credible, scalable tools for tracking transition progress.
Central to this activity is the development and validation of methods aligned with TRACE’s Circular Readiness Level (CRL) metric and the TRACE Data Space, as described in the TRACE Roadmap 2025. These tools are designed to track impact at both project and portfolio level — across the full spectrum of TRACE’s Proof-of-Concept Circular Economy Systems (PoC CE Systems). A PoC CE System is a real-world circular solution that integrates technical, business, behavioral, and policy elements into a scalable model — showing how circularity can work across an entire value chain.
The call supports the Roadmap’s emphasis on systemic innovation, learning-based investment, and measurable progress toward Tipping Point 2: Transparency — where data, incentives, and aligned impact measures make circular business models viable and scalable across sectors.
The funded project must contribute to both research excellence and practical implementation, building bridges between academia, industry, and policy. It must enable TRACE to systematically assess the outcomes and system effects of its investments — from pilots to policy.
TRACE will fund one strategic research project that will:
- Develop and validate short-term impact measurement methods, based on Danish and international frameworks
- Test and refine systemic impact methodologies with scientific and policy credibility, suitable for application at project and portfolio level
- Strengthen TRACE’s CRL metric and Data Space architecture, ensuring robust data aggregation and interpretation
- Align tools and metrics with EU and national strategies, including the Circular Economy Action Plan and the Corporate Sustainability Reporting Directive (CSRD)
- Establish structured stakeholder engagement processes, connecting researchers with companies, public actors, and policymakers
- Support integration of impact measurement into TRACE’s roadmap, investment decisions, and future calls
This call supports all Work Stream Focus Areas (WSFAs) and is anchored in the TRACE Impact Framework. While research-focused, it plays a central role in enabling system-level transparency, comparability, and learning across TRACE’s entire circular economy portfolio.
The funded project will refer to the TRACE Impact Sub-Committee under the Board of Directors and collaborate with the Work Stream Leaders to ensure relevance, usability, and strategic fit. While the call is research-focused, outputs must be actionable and aligned with implementation needs in real-world systems.
An illustrative overview of TRACE’s Project Organization for the call
The details and requirements of the mandatory work package 1
1.2 Strategic Alignment: North Star, Tipping point, Learning Question and Milestones
TRACE’s North Star is a regenerative circular society by 2050 — where the linear economy is obsolete, resources circulate in closed loops, waste is eliminated, and ecosystems are restored. Achieving this transformation requires not just innovation and collaboration, but also robust, reliable tools for tracking progress.
Tipping Points, Learning Questions, and Milestones
As outlined in the TRACE Impact Framework Version One, each major activity is guided by a tipping point, a learning question, and 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 — they are not fixed deliverables, but shared reference points for collaborative progress
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 align their project-specific milestones with the following trajectory:
- By late 2026: Development of the "short-term impact method" and initial scientifically validated systemic impact measurement methodologies, incorporating an analysis of national and international impact measurement frameworks.
- Medio 2027: Systemic impact measurement frameworks scientifically tested and validated, with a structured process plan for engaging national and international stakeholders in refining methodologies.
- By 2028: Scientifically validated impact tracking methodologies fully integrated into TRACE’s strategic roadmap and Danish/EU policy recommendations.
Applicants must align their project-specific milestones with this trajectory. Final milestones will be refined post-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 outputs
- Measurable (qualitatively or quantitatively) and time-bound
- Clearly linked to TRACE’s preliminary milestones
This requirement is defined in:
2. Who can apply?
Any legal entity (public or private), based in Denmark or abroad, may apply as a project partner.
The lead applicant must have a Danish CVR number.
To be considered, a project should consist of partners that are active participants in both the design of the project, the realization of the project, and the active implementation of the results from the project.
Upon final grant agreement, any new organization to TRACE will join the TRACE association as a non-paying member.
What can be applied for?
The investment covers a maximum of 75% of the total project cost. Examples include co-financing of salaries and other expenses directly linked to project implementation. For further information see “TRACE Guidelines”, section 6.
Additional Budget Notes
- PhD students may be included in the budget for time spent directly on project activities that contribute to milestones. Full PhD funding is not provided. Activities that build capacity may be eligible if directly supporting the project’s objectives.
- Projects must not rely on future funding to be successful. All key activities and outcomes should be feasible within the granted project period.
These funding conditions are equivalent to Innovation Fund Denmark’s Grand Solutions model, and TRACE reserves the right to adjust project scopes or budgets during negotiations to ensure strategic fit and complementarity across the WSFA portfolio
3. Requirements for the Project and the Project Investigator (PI)
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:
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- Shared impact data and use of the TRACE CRL metric (TRACE Data Space)
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- Participation in capacity-building and cross-project learning (TRACE Academy)
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- Communication and outreach activities (TRACE Communication)
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- 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.
4. Assessment Criteria
Applications will be evaluated on the following criteria:
- Strategic fit and relevance to the TRACE Partnership's objectives as described in the TRACE roadmaps
- Quality of the Idea (Quality of the Research and Innovation)
- Impact (Value Creation During and After the Project)
- Quality of Execution (Efficiency in the Project Execution and the Implementation of Results)
All criteria are included in the assessment and contribute to the overall assessment. The assessment provided by each evaluator is the reasoned opinion of the evaluator and is not a simple weighted sum of the ratings on the criteria. A strong project cannot have a low rating on Assessment Criterion 1 - “Strategic fit and relevance to the TRACE Partnership's objectives as described in the TRACE roadmaps”
5. Evaluation Process
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.
6. Application Content, Guidance and Documents
Proposals must include the following:
Application and Budget (mandatory)
- Application Template will be uploaded in August
Mandatory appendices
Optional appendices
Additional guidance documents:
- Initial Roadmap
- TRACE Roadmap 2025
- TRACE Impact Framework Version One
- TRACE Project Organization Pool 4&5
- Assessment Criteria
- Process for Evaluation and Investment
- TRACE Guidelines for InnoMission Partnerships
- TRACE Partnership list
- TRACE Project Agreement - Template
Join TRACE’s Co-creation Workshop
August 27, 2025, at Spinderihallerne, Vejle
TRACE invites researchers, companies, NGOs, municipalities, and other stakeholders to a full-day co-creation workshop. The session will help potential applicants:
- Understand TRACE’s project architecture and impact framework
- Explore consortium opportunities
- Align project ideas with tipping points and learning goals.
7. Contact
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)
8 - Disclaimer
The details of this call text—including titles, scope, and eligibility criteria—are provisional and subject to final confirmation upon signing the Investment Agreement (IA) with Innovation Fund Denmark (IFD). TRACE may modify or withdraw the call text if the final IA requires adjustments or if any new requirements arise from IFD. Any significant changes to the scope or wording of these calls will be communicated as soon as possible. It is expected that the agreement between TRACE and IFD will be signed after the summer break.