The European Union and the Philippines Green Economy Partnership launched the Circular Solutions Innovation Challenge in Pasig City on Wednesday, 20 August, to accelerate the Philippines’ transition to a green, circular and inclusive economy.

The Circular Solutions Innovation Challenge is one of the flagship activities under the Green Local Government Units objective of the EU-PH Green Economy Partnership funded by the European Union, led by the Department of Environment and Natural Resources and the Department of the Interior and Local Government, and implemented by the United Nations Development Programme.  

“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. We count on the knowledge, creativity and funding of MSMEs across the Philippines to put solutions into action and to promote circular economy. The Philippine people can count on our experience in Europe, and we are here as Team Europe to support Philippine solutions,” said Dr. Marco Gemmer, head of the cooperation section at the delegation of the EU to the Philippines.

Assistant Secretary for International Relations Lilian de Leon of the DILG highlighted that as the Philippines is positioning itself as a global leader in circularity, collaborations and partnerships among partners like the EU, LGUs, civil society and the business sector are more important now than ever.

“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,” she added.

The first 10 LGUs supported by the partnership, namely, Baguio, Pasig, Quezon City, Caloocan, Iloilo, Ormoc, Davao, Puerto Princesa, the Island Garden City of Samal and Del Carmen, have developed their Circular Economy portfolios to identify system gaps and opportunities where innovation can make a meaningful difference: ranging from plastic waste reduction and organic waste management to sustainable tourism. 

The Circular Solutions Innovation Challenge will finance innovative business solutions aligned with these local priorities. Proposals must be technically sound, financially viable and inclusive by design.

Innovations should deliver measurable impact, strengthen local economies and have the potential to scale or be replicated.

Each selected innovation may receive up to P2,280,000 million or €35,000 in funding and implementation support from the European Union.

The Innovation Challenge reinforces the critical role of local actors as enablers. It encourages partnerships and the co-creation of solutions that respond to on-the-ground contexts: economically viable, technically feasible and socially inclusive.

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

The opening of the Innovation Challenge builds on the momentum of the 27 civil society organizations that received funding under the EU-PH Green Economy Partnership’s Community Grants and Circular Economy Education & Behavioral Change Grants. Launched in April 2025, these grants empower grassroots actors and their initiatives in driving awareness and inclusive actions across circular transition efforts.

Dr. Selva Ramachandran, UNDP Philippines representative, expounded on the importance of using a portfolio of solutions to address barriers: “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.”

Together, these funding mechanisms form a comprehensive ecosystem of support under the EU–PH Green Economy Partnership, enabling local actors to lead circular transformation by resourcing innovation where it matters most — at the local level.

The call for proposals is open until 26 September. Interested innovators may submit their local circular economy solutions through: https://go.undp.org/wgt.