Business models for sustainable forest-based industries

Vinnova offers funding for business model innovation for sustainable and competitive forest-based industries. Funding is provided for the development of sustainable business models and analysis of the sustainability of the business model. The goal is to improve the business and corporate conditions for ideas, R&D, prototypes and pilots to result in commercial success and increased sustainability in the forest value chain.

The goal is also to contribute to analyses that ensure that the products, services and solutions that are currently available truly have potential to contribute to a reduced environmental and climate footprint.

The projects funded may focus on business model innovation for, for example:

• sustainable forestry and biodiversity
• resource-efficient production of materials and products
• circular design and use of raw materials, materials and products.

We do not fund technical R&D aimed at developing technology or technical solutions. A prerequisite for funding is that there are already developed technologies and solutions, or that the project partners have the resources and intention to develop the technologies and solutions needed to realize the business model.

We also do not fund project that are primarily focused on:

• biofuels
• reduced energy consumption or energy recovery
• replacement of short-lived fossil-based materials and disposable products.

The projects must involve at least 3 project parties, of which at least one is a potential solution owner and at least one user or customer. When assessing the applications, an important basis is documented competence and experience in business model development and the ability to lead collaborative processes with many actors. Furthermore, documented competence in sustainability and environmental analysis is required.

As a preliminary work for the call for proposals four scenarios have been developed, which are described in the appendix Future scenarios which can be found on the call website. proposal should state how the project idea relates to, and can be expected to counteract or reinforce, these scenarios.

The budget for the call for proposals is approximately SEK 30 million. The maximum grant amount is SEK 3 million per project. The maximum project duration is 33 months.

Background and motives

The demand for forest raw materials is currently high and new applications are emerging that could further increase demand. The new raw material needs are often linked to the fossil-free transition and the production of bio-based materials, products, fuels and chemicals.

In order for forest raw materials to be sufficient for all different purposes, there is a need to drive development towards increased resource efficiency and circular use. Furthermore, there is a need for innovation that contributes to the longer-term use of forest raw materials and the sequestration of carbon dioxide for a longer period of time.

The possibilities for extracting forest raw materials may be limited by legislation, with eligibility requirements on the restoration of ecosystems, habitats and habitats as well as the reduction of emissions from land use, the preservation of carbon sinks and the sustainable use of natural resources.

In summary, there are major challenges linked to raw material availability, the environment, biodiversity and development within planetary boundaries. In addition, there is a need to protect the interests of industry, forest owners and other groups.

aim and focus of the call

aim of the call is to contribute to the development of business models that are competitive and contribute to increased sustainability, circularity and resource efficiency within forest-based industries and value chains.

This could, for example, involve business models and offerings that contribute to:

• more sustainable forestry and increased biodiversity,
• a more resource-efficient and long-term use of forest raw materials and forest-based products
• a more circular design and use of raw materials, materials and products.

The projects funded are expected to focus on the development of sustainable business models and activities that support their implementation in forest-based industries. Alternatively, the projects may focus on business model innovation for technologies and solutions with sustainability potential, with the aim of contributing to more successful commercialization and increased sustainability.

The projects funded may include the development of one or more business models and one or more business ecosystems.

The projects' business model innovation is expected to occur through systematic, long-term and iterative work in several stages. These stages may include, for example, design and validation of business model concepts, experimentation and evaluation of business model prototypes, and trials that favor implementation of the business model.

The work will be conducted in broad collaboration and involve solution owners, customers, suppliers and partners, to create the conditions for realizing the current solution and business model. For circular business models, this can be particularly challenging, with the need for new partners outside the traditional value chain. The projects are also expected to develop knowledge about the processes, resources, competencies and capabilities needed to support the implementation of the business model.

In addition to business model innovation, the projects will conduct sustainability analyses from a systems and life cycle perspective. The aim is to provide a basis for further development of the project's solution and business model, and to ensure that there is indeed potential for a reduced environmental and climate footprint.

In what ways is the call for proposals expected to contribute to sustainability?

Through efforts to develop and implement business models the call for proposals is expected to contribute to sustainable transition. Below are a number of examples of innovation areas that may be relevant.

Sustainable forestry and forest use

• Certification, labeling and traceability for sustainable procurement and purchasing of forest raw materials and forest-based products.
• Climate compensation and compensation measures for biodiversity.
• Technology for precision forestry and sustainable forestry.
• Techniques for detecting, monitoring and combating forest fires and insect infestations.
• Sustainable use of ecosystem services and balancing the interests of different groups in the use of forests.

Design and circular use

• Design for resource efficiency such as repair, remanufacturing, upgrading, renovation and increased lifespan.
• Products as a service and performance-based business models.
• Models for sharing products and resources or reusing forest-based materials and products.

Resource-efficient and circular production

• Digitalisation, electrification and AI for resource-efficient production and reduced climate footprint.
• Recycling of materials and residual flows.

Other

• Substitution of fossil-based materials with a high climate footprint (for example, concrete and steel).
• Business models that contribute to long-term use and sequestration of carbon.
• Business models for sustainable behavior and sustainable consumption.

Results- and impact goals

The project is expected to contribute to the following results and impacts.

Performance targets

The projects are expected to result in:within the project period.

• Developed and tested business models for sustainable and competitive forest-based industries including basis for decisions on implementation and scaling up of the business model.
• Knowledge of how organizational, operational and systemic conditions affect the possibilities of realizing the business model
• Business ecosystems have been developed for sustainable solutions and business models.
• Increased knowledge of the business model and potential of the solution from a system and life cycle perspective.
• Plans and strategies for commercialization, implementation and scaling up beyond the project period.
• Increased knowledge and ability in the area of sustainable business model development as well as dissemination and possible publication of knowledge and new methods.

Impact goals

In the longer term, the projects are expected to contribute to:

• Faster and more successful commercialization of R&D, technology and solutions that contribute to increased sustainability in forest-based industries.
• Successful implementation and scaling up of sustainable and competitive business models in forest-based industries.
• Established business ecosystems and increased ability to work with business model development in forest-based industries.
• Sustainable offerings on the market with assured and quantified sustainability.
• Forest-based industries that are competitive and sustainable.

Applications must clearly state how the projects are expected to contribute to these resultsand impact goals.

As a preliminary work for the call for proposals four scenarios have been developed, which are described in the appendix Future scenarios which can be found on the call website. proposal should state how the project idea relates to, and can be expected to counteract or reinforce, these scenarios.

Contribute to a sustainable system transformation

Vinnova is tasked with promoting sustainable growth and system transformation. To implement sustainable system transformation, we have chosen to base ourselves on the UN's global sustainability goals, defined in the 2030 Agenda. There, Vinnova prioritizes two perspectives: gender equality and climate change. All initiatives and project we finance are assessed based on how they contribute to these perspectives.

We therefore always follow up and assess this:

• If women and men participate in the project on an equal footing, receive contributions and have influence and power over the project.
• How well the project analyzes and takes a position on whether there are sex or gender aspects that are relevant to the project's problem formulation, solutions and effects.
• How well does the project contribute to:
  • reduced environmental footprint
  • increased circularity and resource efficiency
  • reduced greenhouse gas emissions
  • increased biodiversity

Gender-equal innovation – what it means for those seeking funding from us

Agenda 2030 as a driver for innovation

Making scientific publications and results available

When results from research and innovation are made freely available, more people can contribute to solving societal challenges. This the call for proposals will help make results available to everyone. Therefore, all scientific publishing should be open access.

We primarily target companies, academia and research institutes, but also welcome non-profit organizations, public actors and authorities.

The following eligibility requirements apply:

• At least three organizations must participate as project partners. Among these parties, there must be at least one potential solution owner and at least one user or customer at the time of application.
• Qualified expertise and experience in business model development and relevant expertise in sustainability.

Other skills that may be relevant or desirable include environmental policy and instruments, circular economy, circular design, behavioral design, and public procurement.

Foreign actors may be relevant and possibly necessary to include as project partners in the project. If these actors do not have a branch or establishment in Sweden, they cannot receive support from Vinnova in this call for proposals.

For example, we finance:

• Business model development in various phases such as modeling, experimentation and trials for implementation of the business model.
• Development of business ecosystems and business collaboration.
• Development of knowledge about the prerequisites for implementing business models such as work processes, routines and abilities.
• Analysis of various aspects of sustainability with a focus on the environment and climate, but other sustainability aspects can also be included.
• Dissemination of project results, method development and case descriptions as well as learning activities among partners and actors, also outside the project consortium.
• Development of plans and strategies for continued work beyond the project period.

We do not finance:

• Teknisk FoU which aims to develop new technology and new technical solutions. This means that we assume that there are already technology and solutions to build on or resources to develop the technology and solutions needed to realize the project's business model.
• Replacement of short-lived fossil-based materials and disposable products.
• Project focused on bio-based fuels.
• Project that focuses on reduced energy consumption or energy recovery.
• Project where the benefit accrues to a single actor.

What costs can we finance?

Our funding is subject to state aid rules. The rules govern what types of costs we can finance. These are called eligible costs.

In this the call for proposals these types of costs are eligible:

• Personnel costs: Salaries, social security contributions and other personnel costs.
• Equipment, land and buildings: Instruments, equipment and rent for premises other than regular business premises.
• Consulting and licensing costs: Consulting services, knowledge and patents purchased or licensed from a third party. Costs for consulting services from third parties may not exceed 20 percent of a project party's budget.
• Other direct costs: For example, materials, supplies and travel necessary to carry out the project.
• Indirect costs (overhead): Costs that are not incurred as an immediate consequence of but can be related to the project, such as regular premises and cleaning.
  Indirect costs may constitute a maximum of 30 percent of personnel costs. Universities, university colleges, and certain research organizations and government agencies have higher maximum limits depending on the type of activities.

Vinnova's general terms and conditions for funding

What eligibility requirements apply to costs we finance?

For a cost to be eligible, it must be:

• necessary for the activities in the project
• recorded correctly and separately from the organization's other costs.

An organization may also not claim someone else's costs as its own.

For more detailed information on which eligibility requirements, limitations and exceptions apply, see Instructions for eligible costs

The state aid rules also govern how much of the costs we can finance. This is determined individually for each organization. We therefore differentiate between how much funding the project can receive, and how much each participant can receive.

How much funding can the project receive?

The grant can amount to a maximum of SEK 3,000,000 per project. The maximum project duration is 33 months.

How much funding can a participant receive?

How much funding each participant can receive depends mainly on:

• what activities the party will carry out in the project
• party size and activities.

In this the call for proposals we provide support for experimental development. Experimental development can be simply described as combining, shaping and using existing knowledge to develop new or improved products, processes or services.

Bonus basics

If the project is covered by any of these bonus bases, we can finance a higher proportion of the costs according to the table:

• Actual cooperation: Some level of cooperation between small and larger companies, between companies in two different European countries or between research organisations and companies
• Dissemination of results: Extensive dissemination through, for example, conferences or open databases.
• Other bonus basis

For complete information about these bonus bases, see funding Bases and Support Levels.

We grant funding in accordance with Article 25 of the EU Commission's General Block Exemption Regulation (GBER).

In this the call for proposals we also provide support to organisations that do not engage in economic activities. This means that they do not offer a service or product on a market. This usually includes universities and university colleges, research institutes and other organisations.

We can fund up to 100 percent of such organizations' eligible costs.

How do you determine whether an organization is engaged in economic activities?

An organization that offers any kind of service or product on a market is considered to be conducting economic activities and cannot be granted this form of support. It does not matter how the organization is financed, whether it is public or private, or whether it has a profit motive. It also does not matter what legal form the business has. For example, whether it is a limited liability company, a trading company, an economic association, a non-profit association or a foundation.

If you are unsure whether an organization in your project is conducting economic activities, contact call manager. However, the organization is responsible for assessing whether it is conducting economic activities.

In order for us to take a position on and assess your proposal, it must meet certain formal eligibility requirements. If the requirements are not met, proposal will be rejected immediately.

Eligibility requirements on organizational form of project parties

• All project partners must be legal entities. Natural persons or individual companies cannot participate as project partners.
• The coordinating party must be a Swedish legal entity and conduct activities in Sweden.

Eligibility requirements for the project

• At the time of application, the project must have at least three project partners.
• The project manager must be employed by the coordinating party in the project.
• The project may not begin before proposal is submitted.
• Costs for consulting services from outside parties may constitute a maximum of 20 percent of a project party's budget.

Eligibility requirements on proposal

• Proposal must be written in Swedish or English.
• Proposal must follow the instructions given in section 9.
• Proposal must contain all requested attachments.

What do we assess?

Applications that meet the requirements in section 6 are assessed based on the assessment criteria potential, actors and implementation, see below.

Potential

• The project's potential to contribute to the call's results- and impact goals. See section 2 for further information.
• The extent to which the project can contribute to competitive offerings and increased sustainability in forest-based industries.
• Potential to contribute to positive effects in relation to the four scenarios.
• The project's news value regarding the change that the project aims to bring about within forest-based operations based on the intended business model and solution.
• How well the project is assessed to contribute to increased gender equality.

Actors

• The composition of project partners and how well it corresponds to the call's eligibility requirements.
• Competence, ability and commitment in relation to project objectives and implementation, including competence in business model development and sustainability.
• The project manager's competence, credibility and commitment to leading the project and its collaboration.
• How well the project team is composed in terms of gender distribution. As well as how well power and influence are distributed between women and men in the project team.

Feasibility

• The realism of the project plan, the reasonableness of the budget and the extent to which the content and methodology of the work packages are appropriate given the project's objective.
• Approach, anchoring and involvement of project partners and other relevant actors.
• How well gender equality has been integrated into the project plan.

How do we assess?

Proposal are assessed in competition with other applications submitted to the call for proposals.

We also assess financial status

Before deciding on funding, we also conduct a comprehensive assessment of the organizational and financial status of those receiving funding. We use information we obtain from credit reports, currently from Dun & Bradstreet.

In order for us to grant funding this applies:

• Organizations seeking funding for personnel costs must be registered as employers with the Swedish Tax Agency.
• Organizations must not be insolvent, in liquidation or in corporate restructuring, nor must they have any significant unpaid debts with the Swedish Enforcement Authority.
• Limited liability companies must not have used up half or more of their share capital.
• If requested, SMEs must be able to demonstrate that they have the financial means to implement the project according to their budget in proposal. They cannot use public funding or their own funds intended for other project to cover project costs in this call for proposals.

Once we have assessed all applications, we will send you a decision either granting or rejecting your proposal. In the decision, we state how much funding each party in the project will be granted. Our decision cannot be appealed.

What happens if you are granted funding?

If we grant your proposal, you must follow our general terms and conditions for funding.

The terms and conditions include the following:

• That you will sign a special document in which you approve your participation and commit to carrying out the project.
• That you report how things are going, your costs and achieved results to us regularly during the project period.
• If you are multiple parties, you must agree on your mutual rights and obligations in the project in an agreement. It can take time to get a project agreement in place, so it is a good idea to get this in place before the project starts.
• How the results will be used and how scientific publication will take place.

See our general terms and conditions and get help understanding and fulfilling them.

You also need to follow the special conditions that apply to this the call for proposals:

• The project must be represented by at least one participant at the conferences and other activities convened by Vinnova. The costs of such participation are eligible for support.

We may also decide to add supplementary special conditions for individual project. In such cases, they will be stated in the decision.

Could you have to pay back funding?

If you do not follow our term, you may be required to repay the amount. This also applies if you have been granted funding incorrectly or for an amount that is too high.

To apply for funding you fill out a proposal in our e-service. Proposal contains questions about the project, participating project partners and budget.

Please also attach these attachments to proposal:

• A project description according to the mandatory template, maximum 10 pages.
• En CV-bilaga with the CVs for the project manager and other key people in the project. Use the mandatory CV template and a maximum of one page per person.

Start proposal well in advance

Keep in mind that it takes time to make a proposal. Filling out templates can take several days, as it is based on the analyses you will do.

In our e-service you can start filling in the details and then continue at a later time. You can also distribute permissions to others who you want to contribute to proposal. When proposal is complete, mark it as done.

You can unlock proposal and make changes at any time, right up until the last application date. If you unlock proposal, you must then mark it as ready for it to be registered when the call for proposals closes.

2025-05-15

A term was added under section 3 Who is the call for proposals aimed at, under the heading The projects are expected to result in within the project period.

New term is:

• Knowledge of how organizational, operational and systemic conditions affect the possibilities of realizing the business model.