De minimis aid scheme for the transition to the circular economy – Applicant’s guide

The Order of the Minister of Economy no.1436/2022 approving the Applicant’s Guide for the establishment of the de minimis aid scheme for the transition to the circular economy was published in the Official Gazette (Part I) no.1114 of 18 November 2022.

According to the document, the objective of this aid is to support enterprises in order to stimulate the realization of investments and certain categories of activities with financing from state budget funds, as provided for in the OG no.27/2022.

The maximum budget of the scheme is the equivalent in lei of 8 million euro and the maximum number of beneficiaries is estimated at 60.

The maximum amount granted to a beneficiary from the budget of the scheme is equal to the RON equivalent of 200.000 euro, and the payment will be made in instalments, based on the supporting documents provided in the guidelines. The minimum amount allocated from the budget of the scheme for a project is equal to the RON equivalent of 15.000 euro.

Please note that the period of validity of the de minimis aid scheme is 25 September 2022 – 31 December 2023. Financing contracts can be concluded under this scheme until 31 December 2023.

Beneficiaries are legal entities carrying out activities in the sectors of activity listed in the annex to the OG no.27/2022:

Please note that the de minimis aid is granted to enterprises through allocations from the state budget, through the budget of the Ministry of Economy, in the form of grants, in relation to the eligible expenses provided for in OG no. 27/2022.

Projects under the scheme are financed at 85% of eligible expenses. Beneficiaries are obliged to provide a co-financing of 15% from their own sources, in a form that is not subject to any other public aid.

The total gross amount of de minimis aid granted to a single enterprise may not exceed, at the date of signature of the financing contract, the equivalent in RON of EUR 200,000 over a period of three consecutive fiscal years, regardless of whether the aid was granted from national or European sources.

For enterprises that carry out transport of goods on behalf of third parties or against cost, the total gross amount of de minimis aid granted to a single enterprise may not exceed the RON equivalent of EUR 100,000 over a period of three consecutive fiscal years, regardless of whether the aid was granted from national or European sources.

According to Order 1436/2022, projects for which financial support is granted under this scheme must cumulatively meet the following eligibility criteria:

1. fall within the categories of activities provided for in Article 18 of OG no. 27/2022, namely:

• technology transfer for waste prevention and reduction, as well as resource efficiency, reuse, repair and recycling;
• development of research/innovation activities, eco-design of products and services promoting the principles of the circular economy;
• setting up and/or equipping and/or upgrading testing laboratories for materials and products resulting from circular economy activities, as well as their accreditation, where appropriate;
• setting up and/or equipping and operating repair and refurbishment centres for the reuse of waste and the repair of goods;
• expansion of waste recycling activities;
• creation of an electronic platform, unique at national level, which, based on the information entered by users, automatically links the seller and the buyer;
• creation of collection and valorisation centres for wool, flax, hemp and textile products resulting from the application of the circular economy principles;
• recycling/reuse and/or recovery of industrial waste generated into secondary raw materials or products with a higher added value than the waste from which they come;
• upgrading of existing recycling facilities resulting in at least 30% lower emissions of greenhouse gases, hereinafter referred to as GES, and reductions in the levels of other categories of pollutants in relation to the existing technological line;
• introduction/expansion of production of non-plastic alternatives to single-use plastic products;
• introduction/expansion of non-plastic packaging production.

b) contain the stages of the project and the financing structure by stages;

c) ensure the implementation of the project within a maximum of 16 months from the date of conclusion of the financing contract;

d) present the elements that substantiate the expected results at the end of the project.

Please note that under this scheme the following costs are considered eligible:

• investment costs in tangible and intangible assets;
• estimated wage costs resulting from job creation as a result of the investment, where applicable.

VAT is an eligible expense insofar as it is non-deductible and relates to an eligible cost mentioned above.

The assets purchased must be new.

Intangible assets are eligible for the calculation of investment costs if they meet the following conditions:

• are used exclusively by the beneficiary at the place where the investment is carried out;
• are depreciable;
• they are purchased on market terms from third parties not connected with the buyer;
• they are included in the assets of the beneficiary and must remain associated with the project for which the de minimis aid was granted for a minimum period of three years.

We remind you that, in order to benefit from de minimis aid, the beneficiary must submit the following documents to the Ministry of Economy:

1. application for the conclusion of a financing contract;
2. a certificate issued no later than 10 working days before the date of registration of the application referred to in point a), either in original, issued by the commercial registry office of the court where the company has its registered office, or electronically, with information obtained from the service portal of the National Commercial Registry Office or certificate of registration in the Register of Associations and Foundations, according to Government Ordinance no. 26/2000, approved with amendments and additions by Law no. 246/2005, with subsequent amendments and additions, or certificate of registration in the special register of court records, as appropriate;
3. approved annual financial statements corresponding to the last completed financial year, in copy, for applicants with more than 1 year of activity;
4. power of attorney signed by the applicant’s legal representative, if a person other than the applicant signs the application referred to in point a);
5. a declaration on own responsibility concerning any other de minimis aid received in the previous two financial years and in the current financial year;
6. identity document of the person authorised to legally represent the applicant, in copy;
7. investment plan;
8. analysis of the circularity of the project proposed for funding;
9. the opis with the documents submitted.

 Legal basis:

-ME Order no.1436/2022 approving the Applicant’s Guide for the establishment of the de minimis aid scheme for the transition to the circular economy;

-Government Ordinance (OG) no.27/2022 on the regulation of some financial measures through the establishment of the de minimis aid scheme for the transition to the circular economy.