Climate-neutral e-commerce - Conversion to a sustainable e-commerce with a focus on sustainable packaging systems, return handling and delivery locations

E-commerce is a complex societal challenge with great potential to contribute to sustainable development. However, to capture this potential and transform e-commerce into a sustainable system, a thorough system change is required. The development of e-commerce has led to an increased availability of goods and services within and outside metropolitan areas, where digital commerce is the key and creates new opportunities for a number of actors. On the other hand, the development of e-commerce has led to a large increase in deliveries of smaller packages and goods, fragmented transport flows and the emergence of new supply chains. This leads to the development of e-commerce facing a multitude of challenges and opportunities with regard to the environment, people and economy.

In light of this, Vinnova offers support for project that can contribute to a sustainable transformation of the e-commerce area and funding for project in the following innovation areas:

• Sustainable packaging solutions and packaging systems
• Sustainable return systems
• Sustainable delivery locations of the future

Challenges in these areas are often of an overall systemic nature where solutions require collaboration between actors in different parts of the e-commerce chain. Project that involve need owners, executors and that include large parts of the e-commerce chain are rewarded.

The total budget for the call for proposals is approximately SEK 10 million for the years 2023–2024 and the project duration may be a maximum of 18 months.

E-commerce is increasing faster than ever, which brings with it a number of sustainability challenges but also opportunities, for the whole of society. In order to reach the global goals, there is no doubt that we need to develop e-commerce into a sustainable system. We know that innovation and knowledge development are crucial to tackling this complex societal challenge.

The retail sector is undergoing a thorough systemic change, with increased e-commerce being the main driver of the change. The development of e-commerce has led to an increased availability of goods and services within and outside metropolitan areas, where digital commerce is the key and creates new opportunities for a number of actors. E-commerce has also been a door opener for a larger second-hand market and enabled the introduction of circular services. Overall, the development of e-commerce has led to a large increase in deliveries of smaller packages and goods, fragmented transport flows and the emergence of new actors and supply chains. Which leads to the development of e-commerce having a number of challenges and opportunities with regard to the environment, people and the economy.

Sometimes e-commerce can therefore be described as a necessary evil in the social debate. An example is the discussion around returns, increased amount of packaging material and packaging, as well as dying city centers and the reduction of physical stores.

Vinnova finances Plattformen ASTER - Alliance for sustainable e-commerce, which brings together organizations from society, business and academia to ensure that trade in Sweden is efficient, competitive and sustainable. ASTER is run jointly by Lund University and Lindholmen Science Park. In order to effectively bring about sweeping system changes, there is a clear need to gather strength around several different perspectives in e-commerce and supplement this effort with an open the call for proposals. This is the second the call for proposals that is carried out on the theme of climate-neutral e-commerce, and you can read more about previous call for proposals here: Climate-neutral e-commerce

With this the call for proposals we want to contribute to trade reducing its total environmental impact and making it more resource efficient, as well as creating conditions in the physical environment for sustainable trade. Based on this background, a number of key areas in the transition to sustainable e-commerce have been selected.

These areas of innovation are as follows:

• Sustainable packaging solutions and packaging systems
• Sustainable return systems
• Sustainable delivery locations of the future

Sustainable packaging solutions and packaging systems

Sustainable packaging initiatives can provide significant funding for carbon dioxide reduction throughout the e-commerce chain. Packaging initiatives can take into account transport and consumer packaging and should be assessed for its total impact throughout the e-commerce chain based on material utilization, transport efficiency, product waste, customer experience and recycling. In this area, it is particularly interesting with methods and processes that can contribute to reduced (or completely avoid unnecessary) packaging waste, increased volume efficiency, and circular packaging flows.

Sustainable return systems

The possibility of being able to return is a legal requirement for e-commerce and creates basic security for consumers. E-retailers have long seen returns as an important part of their offer but which are usually associated with high costs. In the transition to circular trade, the return system is an essential key component in e-commerce in order to make the best use of both new and used products in order to increase resource utilization. Today's systems are inefficient and limited, which highlights the need to improve the handling of returns and ensure a more sustainable returns management system.

The sustainable delivery location of the future

The place of delivery constitutes how and where e-sold goods and services meet the customer and has a significant impact on e-commerce's total environmental impact. The growth in e-commerce in terms of e.g. product range and consumer groups means that the delivery locations of the future must be developed and explored from several different aspects, for example in terms of function, design and location. In this there are challenges to optimize the delivery locations based on the customer's needs, but also take into account the city's conditions and minimization of unnecessary transportation, and not least to streamline the flows in the delivery chain to and from the delivery locations.

System innovation

The projects must clearly demonstrate the potential in creating system change that contributes to a sustainable transition in line with the global sustainability goals and contributes to a climate-neutral e-commerce. In order to reduce the climate impact of e-commerce, innovation is required based on a system perspective, so-called system innovation.

The projects should consider at least three of the five dimensions of system innovation described below:

• Technology, products and processes – can for example be about various technical aspects that need to be developed to enable innovation or processes that need to be improved.
• Business models, investments and procurement - can for example be about blockages in procurement processes, development of business models or increased need for cooperation between different actors.
• Policy and regulations - can for example be about identifying legal obstacles or the need to change policies at various public actors.
• Behaviour, culture and values – can for example be about behaviors or cultural aspects that make the implementation of the innovation difficult.
• Infrastructure - can be about, for example, physical or digital infrastructure that needs to be developed to enable innovation.

These dimensions must be used to identify obstacles and shortcomings and create an understanding of what can hinder the implementation of the innovation.

Focus on climate and gender equality in all our investments

Vinnova is tasked with promoting sustainable growth and community development. Genom Agenda 2030, the countries of the world have agreed on a global agreement and understanding of what characterizes sustainable development. Through our efforts, we contribute to the global commitment to reach the goals.

In Inom Agenda 2030, Vinnova has particularly singled out climate and gender equality as two central sustainability perspectives to which our funded investments should contribute positively. Project financed by Vinnova are therefore expected to take special account of the climate and gender equality aspects.

One aspect that Vinnova follows up on and assesses is whether both women and men equally share in the contribution, participate in and have influence over the project.

Another aspect involves analyzing and deciding whether there are gender aspects that are relevant to the project's problem area, solutions and utilization. In this the call for proposals that aspect is also assessed.

Our work to contribute to the goals of Agenda 2030

Equal innovation - what it means for you who seek funding from us

The offer addresses project constellations:

• With two or more parties within the ecosystem or supply chain in e-commerce. For example, Swedish companies, the public sector, authorities, interest organizations and academia. The constellation must involve interdisciplinary grouping with need owners, executors and project that integrate different parts of the e-commerce chain.
• Which has the ability to collaborate across sector boundaries and between different actors in the entire e-commerce chain.

Need owner means a party who needs and benefits from the project results and who can take care of, manage and disseminate the project results after the end of the project.

In this the offer we see that actors collaborate, develop and test innovative solutions. The consortium must be adapted to current needs and the owners of the needs must be involved in the development work and have a central role in the project.

Vinnova works for equal social development. This means that applicant must take gender equality into account when composing the project, for example concerning;

• Selection of project manager and composition of project group or project participants.
• Division of work, power and influence in the project such as for sub-project managers and participation in the steering group.
• Involvement of target group.

Examples of activities for which it is possible to apply for funding are developing, testing and evaluating solutions and preparing for implementation and utilization. The types of project activities that are approved within the framework of this call for proposals must be covered by one of the support bases Industrial research or Experimental development. Read more under section 5 below.

Our funding is covered by rules on government support. The rules govern both what kind of costs and what proportion of the costs we can finance. This is determined for each organization individually. We therefore distinguish between how much funding the project can receive, and how much each participating participant can receive.

How much funding can the project receive?

The call's budget is approximately 10 million for the period 2024–2025. The project duration can be a maximum of 18 months. The call for proposals has a limit of SEK 2 million in granted funding per project.

How much funding can a participant receive?

How much funding each participating participant can receive mainly depends on:

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

In this the call for proposals we provide support for project activities Industrial research or Experimental development.

Vinnova provides state support in accordance with the government's regulation (2015:208) on state support for research and development and innovation (the "Support Regulation"), which in turn refers to the EU Commission's regulation no. 651/2014 on general block exemptions ("GBER"). Funding in this call for proposals will be granted with support of Section 9 of the Support Regulation, i.e. Article 25 of the GBER. The project's activities must fall within one of the support bases Industrial research or Experimental development. More information on the basis of support and on support levels can be found in "Support levels, definitions etc. for funding" according to Vinnova's support scheme.

Funding can also be given as so-called support of minor importance (de minimis support) in accordance with § 2 of the Support Regulation and the commission's regulation no. 1407/2013 on support of minor importance. De minimis support can be given with up to 100 percent of the organization's eligible costs. Before such support can be granted, a certificate of minor support must be submitted to Vinnova. This is done in connection with proposal. Maximum permitted support of minor importance is 300,000 euros per recipient during the last three tax years.

Read more about de minimis support and download the form here

Organizations that carry out non-economic activities can be granted funding that does not constitute state aid when they participate in their non-economic activities. Such funding can be provided with up to 100 percent of the organization's eligible costs.

It is important that you yourself make an assessment as to whether the business in question is covered by the state aid rules. The basis for support and aid intensity that applies to each beneficiary will be clear from the decision on funding.

What costs can we finance?

Our funding may only go to certain types of costs. 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 license costs: Consulting services, knowledge and patents purchased or used under license from an external actor.
• Other direct costs: For example materials, stock items 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, for example regular premises and cleaning.
  Indirect costs may constitute a maximum of 30 percent of personnel costs

For more detailed information on which costs we can finance, see our instruction on eligible costs

What eligibility requirements apply to costs we finance?

For a cost to be eligible, it must be necessary for the activities of the project. Project costs must also be properly accounted for and reported separately from the organization's other costs. An organization may also not take up someone else's costs as its own.

For more detailed information on which eligibility requirements, limitations and exceptions apply, see our instruction on eligible costs.

In order for us to take a position on and assess your proposal it must meet certain basic requirements - so-called formal eligibility requirements. If these eligibility requirements are not met, our evaluator will not handle your proposal.

• The project must not have started before proposal is submitted
• Proposal must be submitted via Vinnova's e-services
• Proposal must be written in Swedish or English
• That the templates specified in Section 9 have been used
• All project parties must be legal entities and beneficiary must have a branch or place of business in Sweden

• All mandatory appendices follow the structure found in the respective template. Please note a maximum of 12 pages for project description.

What do we assess?

Potential

• The project's potential to contribute to the global goals of Agenda 2030 and the goals of the call for proposals:
  - that e-commerce's total environmental impact is reduced
  - that the e-commerce chain becomes more resource efficient
  - that conditions are created in the built-up area for sustainable e-commerce
• How well described is the area's current state of knowledge (state-of-the-art), i.e. how innovative is the project, in what way does the idea differ from already existing innovations or solutions on the market?
• To what extent the project application takes a systems approach by addressing the dimensions of system innovation
• The project's potential in terms of making use of the project results
• The project's potential to contribute to increased gender equality.

Feasibility

• How well relevant sustainability perspectives have been integrated into the project plan
• How realistic and reliable schedule and budget are judged to be in relation to the project's content
• How effectively the project is organized so that experiences and needs from different groups are integrated into the implementation.
• How well equality aspects have been integrated into the project plan.

Actors

• Degree of commitment and participation in the project by actors who can implement or commercialize the chosen solution (need owners)
• Composition, competence, ability and commitment of the project constellation in relation to project goals, execution and implementation
• How well the project constellation is composed with regard to gender distribution, including the distribution of power and influence between women and men

How do we judge?

The decision process looks like below:

1. Proposal are submitted via Vinnova's e-services.
2. The applications that meet the formal requirements will be assessed against specified assessment criteria by specially appointed evaluator.
3. This results in a combined recommendation for funding the applications. The assessment takes place in competition between received applications.
4. Vinnova then makes the final decision on which project are to be financed.
5. Decision is notified to applicant.

When we have assessed all applications, we will send a decision in which we either grant or reject your proposal. In the decision, we state how much funding each party in the project is granted. Our decision cannot be appealed.

What 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 this:

• That you must sign a special document in which you agree to carry out the project.
• That you must report your costs and results to us regularly during the project.
• That you, if you are several parties, must agree on what applies to the project in a project agreement.
• How the results will be used, and how any scientific publication will take place.

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

We can also decide to add supplementary special conditions for individual project. In that case, they appear in the decision.

Can you have to pay back funding?

If you do not follow our term you may be liable for a refund. This also applies if you have been granted funding incorrectly or with an amount that is too high.

To apply for funding you fill in a web-based form in Vinnova's e-service for applications, which can be accessed via www.vinnova.se.

There you also upload the following attachments:

• Project description according to template. Please note that there is a maximum of 12 pages in 11 point font size, excluding cover page, summary and table of contents.
• CV attachment containing relevant CVs for project manager and all key personnel (according to template)
• When using basis for support "de minimis" a "Certificate of support of minor importance - "de minimis" is also required. The certificate can be downloaded here

Start proposal in good time

Keep in mind that it takes time to make a proposal. Filling out templates can take several days, as it is based on analyzes you will be doing. Therefore, start in good time. You can start filling in information and continue at a later time. When proposal is ready, you 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.

2024-05-16

Added under section 6:
All mandatory appendices follow the structure found in the respective template. Note a maximum of 12 pages for project description

Filed under Section 9:
Please note that there is a maximum of 12 pages in 11 point font size, excluding cover page, summary and table of contents.