The Department of the Interior and Local Government (DILG), in partnership with the United Nations Development Programme (UNDP), officially launches the Circular Solutions Innovation Challenge, a key initiative under the European Union–Philippines Green Economy Programme. The Challenge seeks to identify and support innovative, market-ready solutions from micro, small, and medium enterprises (MSMEs), startups, and local innovators to address critical environmental issues at the community level.

With support of up to ₱2.28 million (€35,000) in grant funding per selected proposal, as well as expert mentoring and implementation support, the Challenge invites qualified applicants to propose practical solutions in the following priority areas: Reduction of plastic and organic waste, promotion of sustainable tourism practices and development of greener and more circular local economies.

Successful applicants will have the opportunity to work directly with participating local government units (LGUs), which have developed localized circular economy roadmaps and identified areas where innovation can deliver meaningful impact.

The program is being piloted in ten LGUs across the country, including Baguio City, Pasig City, Quezon City, Iloilo City, Davao City, and Puerto Princesa, among others. Selected innovations will be co-implemented with these LGUs, ensuring alignment with community needs and policy priorities.

“This initiative reinforces our commitment to enabling local governments to work with MSMEs and innovators to create sustainable solutions grounded in local realities,” said DILG Assistant Secretary Lilian De Leon.

Dr. Marco Gemmer of the European Union emphasized the value of local entrepreneurship: “The knowledge, creativity, and entrepreneurship of MSMEs can drive solutions that improve lives and create green jobs.”

UNDP Resident Representative Dr. Selva Ramachandran noted that the approach ensures sustainability: “By fostering innovation through a portfolio of community-aligned solutions, we are supporting a transition that is innovative, integrated, and locally owned.”

This initiative is part of the EU-supported Green Economy Programme, a five-year multi-stakeholder effort led by the DILG and implemented in collaboration with the Department of Environment and Natural Resources (DENR), civil society, and private sector partners. It aims to advance the Philippines’ shift toward a circular, inclusive, and sustainable economy.

Call for Proposals Now Open

“The deadline for submissions is 26 September 2025. Interested parties may submit proposals via the official UNDP portal: https://go.undp.org/wgt,” Remulla affirmed.

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