




































AGORA International Journal of Economical Sciences, http://univagora.ro/jour/index.php/aijes 

ISSN 2067-3310, E-ISSN 2067-7669 

Vol. 18, No. 1 (2024), pp. 111-123 

 

111 

 

THE IMPORTANCE OF EU-FUNDED PROJECTS FOR THE 

SUSTAINABLE DEVELOPMENT OF LOCAL COMMUNITIES 

 

N. LAZAR 

 

Nuša Lazar 

Dekorina d.o.o. / Ljubljana School of Business, Slovenia  

https://orcid.org/0000-0002-5898-4968, E-mail: nusa.lazar@dekorina.si  

 

Abstract: Sustainable development has been one of the core strategies of the EU. The term 

refers to three basic components: the economic component, which is associated with balanced 

growth, the environmental component which refers to the preservation of the ecosystem, and the 

social component, which guarantees inter- and intra-generational equality. While talking about 

sustainability it is important also to tackle the topic of circular economy. The circular economy aims 

to preserve value by designing out waste and pollution, optimizing resources by keeping products 

and materials in use, and ensuring system effectiveness by regenerating natural systems. One of the 

strategies of the EU to achieve sustainable development and the move towards a circular economy is 

to support it through various EU-founded projects. In this article, we will elaborate on the current 

state of sustainable development of EU-founded schemes and how they can be used for different 

projects for local communities and cities since cities are seen as both the source and solution to 

today's economic, environmental, and social challenges. Furthermore, in the article, we will outline 

some best practices of EU-founded projects around sustainable development in the case of the city of 

Maribor, Slovenia, and indicate their importance for its community. 

Keywords: sustainability, circular economy, EU, funds, projects, local communities, Maribor. 

 

1 INTRODUCTION 

Sustainable, ecological, green, eco-friendly, etc. are terms used in our everyday lives, 

practically on a daily basis. These terms are all synonyms of each other. Sustainability is often referred 

to as “sustainable development” (EC, 2022b), which means meeting our own needs without 

compromising the ability of future generations to meet their own needs. It includes three pillars: 

economic, environmental, and social. Sustainability more in detail implies a link towards 

environmental impacts; in other words, the consumption of natural resources and the deliberation of 

pollution and energy use, the concern of economic themes of growth and durability, additionally 

connected to social inclusion and distribution of wealth (Musgrave & Raj, 2009). To achieve 

sustainability, the following contemporaneous achievements are necessary (Purvis et al., 2019): 

 Environmental sustainability refers to the conservation and responsible management of 

natural resources (primarily non-renewable as well as vital for the maintenance of life, such 

as air, water, and land) where it is important to minimize pollution and protect the 

environment. 

 Economic sustainability refers to creating prosperity at different levels of society, through the 

long-term sustainability of enterprises and other related economic activities. 

https://orcid.org/0000-0002-5898-4968
mailto:nusa.lazar@dekorina.si


THE IMPORTANCE OF EU-FUNDED PROJECTS FOR THE SUSTAINABLE DEVELOPMENT 

OF LOCAL COMMUNITIES 

112 

 

 Social sustainability implies an equitable distribution of benefits, as well as respecting human 

rights and maintaining and strengthening local communities. 

While talking about sustainability it is important also to tackle the topic of circular economy. 

The circular economy is a model of production and consumption, which involves sharing, leasing, 

reusing, repairing, refurbishing, and recycling existing materials and products as long as possible. In 

this way, the life cycle of products is extended. As defined by the Ellen MacArthur Foundation 

(2015), a circular economy aims to preserve value – by designing out waste and pollution, and 

optimizing resources – by keeping products and materials in use and ensuring system effectiveness 

by regenerating natural systems. The efficient (re)use and recycling of resources, materials, and 

products from closed loops represents the transition away from consumption- and disposal-based 

linear models. The Ellen Macarthur foundation designed the infographic below to show how the 

circular economy works (Scheme 1). 

 

Scheme 1 

The butterfly diagram: visualising the circular economy. 

 
Source: Ellen MacArthur Foundation (2019). 

 

Currently, about 85% of global GDP is generated through cities. Such rapid growth puts 

enormous pressure on urban resources, carrying capacities, and quality of life. Simultaneously, about 

70% of the energy is used by cities and the proportion of the world’s population living in urban areas 

is expected to increase, reaching about 70% by 2050. Quantitative analysis of the global resource 

requirements of future urbanization shows that material consumption by the world’s cities will grow 

from 40 billion tonnes in 2010 to about 90 billion tonnes by 2050 (EC, 2020b).  



Nuša LAZAR 

113 

 

Cities and regions play an important role in making the circular transition happen, as they are 

at the centre of key decisions determining economic growth, social well-being, and environmental 

benefits. On the one hand, cities and regions have direct competences in key circular economy sectors 

such as buildings, mobility, and waste management, among others. On the other hand, cities and 

regions are also directly connected to local networks. As a result, they are in a special position to 

channel local resources for the deployment of circular innovations along the value-chain of priority 

sectors and products. For cities and regions, the circular economy represents an opportunity to rethink 

production and consumption models, services, and infrastructure to enable long-term value retention 

of products and materials, increase resource productivity and further capture value after product end-

of-life. In this context, the transition to a circular economy requires a systemic change where 

provision of services is carried out by ensuring an efficient use of primary resources and giving 

priority to their reuse; economic activities are planned from a life cycle perspective and carried out 

in order to close, slow and narrow loops across value-chains and infrastructures are designed and built 

to avoid linear locks-in (OECD, 2020). 

There are special funding opportunities for cities and urban areas within the EU, to support 

cities and regions in their transition to sustainable development and circular economy, since one of 

the strategies of the EU is to achieve sustainable development and the move towards a circular 

economy. The goal of the research in this article is closely related to the previously mentioned 

sustainable development and EU funds correlated to this topic. It wants to prove that EU-founded 

schemes can be used for different projects for local communities and cities in that field and support 

the move to a greener EU. 

 

1. 1 Sustainable development, and circular economy – the focus of the EU 

In December 2015, the European Commission put forward a Circular Economy package 

containing an action plan and legislative proposals on waste management. This was then adopted in 

2018. 

The European Commission adopted the new circular economy action plan (CEAP) in March 

2020, which aims to promote more sustainable product design, reduce waste, and empower 

consumers, for example by creating right to repair) (EC, 2020a). There is a focus on resource intensive 

sectors, such as electronics and ICT, plastics, textiles, and construction. It is one of the main building 

blocks of the European Green Deal, Europe’s new agenda for sustainable growth (European 

Parliament, 2023a). In February 2021, the Parliament adopted a resolution on the new circular 

economy action plan demanding additional measures to achieve a carbon-neutral, environmentally 

sustainable, toxic-free, and fully circular economy by 2050 (EC, 2023b). 

The European Green Deal sets the blueprint for a transformational change. A change which 

will bring with it many benefits, from creating new opportunities for innovation, investment, and 

green jobs, to improving health and wellbeing. All 27 EU Member States committed to turning the 

EU into the first climate neutral continent by 2050. To get there, they pledged to reduce emissions by 

at least 55% by 2030, compared to 1990 levels. The EU now has legally binding climate targets 

covering all key sectors of the economy. The overall package includes (EC, 2023b):  

 emissions reduction targets across a broad range of sectors; 

 a target to boost natural carbon sinks; 

 an updated emissions trading system to cap emissions, put a price on pollution and generate; 



THE IMPORTANCE OF EU-FUNDED PROJECTS FOR THE SUSTAINABLE DEVELOPMENT 

OF LOCAL COMMUNITIES 

114 

 

 investments in the green transition; 

 and social support for citizens and small businesses. 

The EU’s new circular action plan paves the way for a cleaner and more competitive Europe. 

The EU’s transition to a circular economy will reduce pressure on natural resources and will create 

sustainable growth and jobs. It is also a prerequisite to achieve the EU’s 2050 climate neutrality target 

and to halt biodiversity loss. The new action plan announces initiatives along the entire life cycle of 

products. It targets how products are designed, promotes circular economy processes, encourages 

sustainable consumption, and aims to ensure that waste is prevented, and the resources used are kept 

in the EU economy for as long as possible. It introduces legislative and non-legislative measures 

targeting areas where action at the EU level brings real added value. The key objectives are (EC, 

2023a): 

 make sustainable products the norm in the EU; 

 empower consumers and public buyers; 

 focus on the sectors that use most resources and where the potential for circularity is high such 

as: electronics and ICT, batteries and vehicles, packaging, plastics, textiles, construction and 

buildings, food, water and nutrients; 

 ensure less waste; 

 make circularity work for people, regions and cities; 

 lead global efforts on circular economy. 

The European Union is providing several funding programs to support the transition to a 

circular economy, to support sustainable development, and green transition. In Scheme 2 the 

committed funds until 2020 are presented, as well as the estimated funding need. This shows the 

importance of the needed change towards sustainability and circularity for the EU. 

 

Scheme 2 

European Union committed funds until 2020. 

 
Source: European Parliament (2023b).  



Nuša LAZAR 

115 

 

The importance of sustainable development for the EU is shown also in the context of 

supporting EU candidate countries in their sustainable development. For example, for Montenegro, 

the EU is combining the resources of the European Union, assisting the institutions at all levels, the 

business community, civil society, and citizens as well as supporting sustainable development with 

EU funds. In the past 3 years, the EU contributed 15 million USD in investments to advance the 

sustainable development goals (United Nations Montenegro, 2024). In recent years, Montenegro has 

fulfilled some of the conditions that bring it closer to the proposal of sustainable development 

(Smolović et. al, 2023): legislation is being developed, a critical mass of knowledge has been reached, 

and the behavior of entrepreneurs is also changing. This is possible only in the interdisciplinary way 

of solving problems and should be applied here also in the future. One of the ways to do it is by 

participating in EU-funded projects, as well as with different knowledge transfer activities as 

observing partners in such projects. 

 

1. 2 EU funding programs for sustainability, circular economy, and green transition 

The European Union is providing several funding programs to support the transition to a 

circular economy, such as the European Structural and Investment Funds, Horizon 2020, and the 

LIFE program. In addition, the European Investment Bank (EIB) is providing finance and advice for 

circular economy projects through the InvestEU Advisory Hub (EU 2019). 

The three principal funding instruments for the transition to a circular economy include: 

shared management funds, the Horizon Europe program, and the LIFE program (OECD, 2023). 

Shared management funds are EU funds that are shared with Member States and regions. 

These include: 

 the European Structural and Investment Funds (ESI funds), in particular, the European 

Regional Development fund (ERDF),  

 the European Social Fund Plus (ESF+),  

 the Cohesion Fund (CF),  

 and the Just Transition Fund (JTF). 

Horizon Europe is the EU’s Research and Innovation program with a budget of nearly EUR 

100 billion, running until 2027. This includes almost EUR 5.5 billion from the NextGenerationEU 

(NGEU) instrument to support greener, digitalized, and more resilient societies and economic 

recovery from the COVID crisis. The budget is divided among 4 pillars and 15 components to support 

several areas of research and innovation (R&I). 

The LIFE programme is the EU’s funding instrument for the environment and climate action 

with a budget of EUR 5.4 billion for the funding period 2021-2027. It has four sub-programs, one of 

which covers the circular economy. The “Circular economy and quality of life” sub-program co-

finances projects in circular economy, including the recovery of resources from waste, as well as 

projects concerning water, air, noise, soil and chemical management, and environmental governance. 

Other financing opportunities at the EU level for the circular economy transition are (OECD, 

2023, AAL Programme, n. d., EC, n. d.): 

 Interreg is a funding instrument to support cross-border, transnational, and interregional 

cooperation, as well as for outermost regions. It seeks to tackle common challenges and find 

common solutions in several areas. 



THE IMPORTANCE OF EU-FUNDED PROJECTS FOR THE SUSTAINABLE DEVELOPMENT 

OF LOCAL COMMUNITIES 

116 

 

 The New European Bauhaus (NEB) is a creative and interdisciplinary initiative connecting 

the European Green Deal to living spaces and experiences. 

 The Innovation Fund (IF) targets the commercial demonstration of innovative low-carbon 

technologies. 

 The Digital Europe Programme (DIGITAL) is a new EU funding programme. It aims to 

accelerate economic recovery and shape the digital transformation with its focus on businesses 

(especially SMEs), citizens and public administrations. 

 AAL programme is a funding program that aims to create a better quality of life for older 

people and to strengthen industrial opportunities in the field of healthy aging technology and 

innovation. 

 The Erasmus+ programme, along with the well-known learning mobility of individuals and 

cooperation between organizations and institutions, also enables support for policy reform 

(including the field of education and sustainable development policies). 

There are special funding opportunities for cities and urban areas, such are: 

 European Urban Initiative, which supports urban areas of all sizes with innovative actions, 

capacity and knowledge building, policy development, and communication on sustainable 

urban development (European Urban Initiative, n. d.). 

 URBACT, which drives change all over Europe by enabling the cooperation and idea exchange 

amongst cities within thematic networks, by building the skills of local stakeholders in the 

design and implementation of integrated and participatory policies, and by sharing knowledge 

and good city practices (URBACT, n. d.). 

 EIT Climate-KIC is Europe’s leading climate innovation agency and community, supporting 

cities, regions, countries, and industries to meet their climate ambitions through systems 

innovation and place-based transformations (EIT Climate-KIC, 2024). 

When deciding how to choose the right program, it is important to contemplate the following: 

 What is the central topic of the project? 

 What is the main objective and purpose of the project? 

 What is the funding for (knowledge exchange, financing of innovative investments, education, 

etc.)? 

 What kind of partnership will be established: national or international partnerships? 

Only by answering these questions, the proper decision about the suitable funding program 

for applying one’s project idea can be made. 

 

2 METHODOLOGY 

The content of the first chapters of the paper is the needed desk-research to understand the 

topic and understand the background of EU-funded projects. This helps also cities and regions, at the 

local level, while preparing their sustainable strategies and applying for EU funds: mostly with case 

study research, record keeping, and qualitative observations. In this chapter, the following scientific 

research methods were used in the processing of the topics discussed in this paper in appropriate 

combinations: methods of abstraction and concretization, methods of generalization and 

specialization, qualitative research involving collecting non-numerical data, observations, and case 

study research on the selected topic, as well as methods of analysis and synthesis in determining the 



Nuša LAZAR 

117 

 

appropriate necessary knowledge of sustainable development and applying it to the EU-funded 

projects in the case of the city of Maribor. 

Based on the beforementioned content analysis and thematic analysis of the field of 

sustainability, circular economy, cities' involvement in the topic, and EU funding opportunities, we 

analyzed several different Circular Economy Initiatives at city levels described and presented online 

(Amsterdam, Barcelona, Copenhagen, Helsinki, London, Maribor). These initiates are often the 

starting point of the circular transition of cities or regions and the baseline for projects’ applications. 

Further, we will outline some best practices of EU-founded projects around sustainable development 

and indicate their importance for further development in the example of the city of Maribor, based on 

the expert experience as well as firsthand experience of the author, who is also working in the field 

of sustainable development, circular economy, and green transition through EU-funded projects. 

Together we looked at 25 different EU-funded projects carried out in the city of Maribor in 

the period from 2016 to 2024, which have an emphasis on sustainability, circular economy, and green 

transition in practice (RRA Podravje – Maribor, n. d.). Based on that we decided to present the 

following 3 (describing the cornerstones for the circular economy in the city of Maribor, Slovenia): 

1. The GREENCYCLE project laid the foundation for the circular economy transition in Maribor 

since one of the outcomes was the Strategy for the Transition to a Circular Economy in the 

Municipality of Maribor. This is one of the corner documents for EU projects’ applications 

for projects in Maribor and presents an important milestone in the city’s transition from linear 

to circular economy. 

2. The CINDERELA project was the first Horizon 2020 founded project in the field of circular 

economy in Maribor. The aim of the project was to create ways to process construction waste 

and demolition waste, which together with waste from industry, municipal services, and 

others, form excellent secondary raw materials for construction work. Also, the author worked 

on the project as part of the project management team and has firsthand experience with the 

mentioned project. 

3. The CITY WATER CIRCLE project focused on the urban circular water management. The 

project enabled a digital learning center for anyone who wants to handle water more 

sustainably. Smaller pilots were also part of the project, whereby Maribor’s pilot and an 

exceptional added value to the project since it was done in correlation with the acquired 

CIDNERELA project. Also, the author worked on the project as part of the project’s 

stakeholder group and has firsthand experience with the mentioned project. 

 

3 RESULTS - BEST PRACTICES OF EU-FUNDED PROJECTS FOR THE 

SUSTAINABLE DEVELOPMENT OF LOCAL COMMUNITIES   

The starting point of the circular transition of cities or regions and the baseline for EU projects’ 

applications are often Circular Economy Initiatives. These are prepared by cities and regions and are 

the basis for a sustainable circular economy and on the other hand, are supporting the transition to 

circular economy. In this chapter, we will take a look at some of them. 

Furthermore, we will look at some examples of EU-funded projects for the sustainable 

development in the city of Maribor, Slovenia, and how they influenced the transition to sustainable 

development and circular economy of the city. 

 



THE IMPORTANCE OF EU-FUNDED PROJECTS FOR THE SUSTAINABLE DEVELOPMENT 

OF LOCAL COMMUNITIES 

118 

 

3. 1 Circular economy initiatives at the local level 

In previous years, several cities and regions in Europe have defined their own Circular 

Economy Initiatives to set the basis for sustainable circular economy and ecosystems and to make the 

transition circular economy. In Table 1 selected circular economy initiatives are listed (only EU).  

 

Table 1 

Selected circular economy initiatives at the local level in EU cities. 

City Initiative 

Amsterdam (Netherlands) Amsterdam Circular 2020-2025 Strategy 

Building Blocks for the New Strategy Amsterdam Circular 2020-2025 (2019) 

The Amsterdam City Doughnut. A Tool for Transformative Action 

Barcelona Metropolitan Area 

(Spain) 

Circular Economy Promotion Program AMB Circular (2019) 

Copenhagen (Denmark) Circular Copenhagen: Resource and Waste Management Plan 2024 (2019) 

Helsinki (Finland) City of Helsinki’s Roadmap for Circular and Sharing Economy (2020) 

Lappeenranta (Finland) City of Lappeenranta Circular Economy Roadmap 2019 

London (United Kingdom) London’s Circular Economy Route Map (2019) 

Maribor (Slovenia) Strategy for the Transition to a Circular Economy in the Municipality of 

Maribor (2018) 

Murcia (Spain) Assessment of the State of Circular Economy in Murcia (2020) 

Nantes Metropolitan Area 

(France) 

Circular Economy Roadmap Nantes (2018) 

(Feuille de route Economie circulaire Nantes Métropole) 

Paris (France) Circular Economy Plan 2017-2020 (2017) 

1st Roadmap Paris Circular Economy Plan (2017) 

2nd Roadmap Paris Circular Economy Plan (2018) 

Turku (Finland) Turku Resource Wisdom Roadmap 2015-2040 

Valladolid (Spain) Valladolid Circular Economy Roadmap (2017-2018) 

Source: Adopted by OECD (2020).  

 

The circular economy transition calls for cooperation between stakeholders and citizens, 

across levels of government and public offices. Cities and regions can play the role of facilitators by 

(OECD, 2020) i) implementing effective multi-level governance coordination; ii) enhancing policy 

coherence and systemic thinking; iii) fostering stakeholder engagement, and iv) adopting a functional 

approach to identify the appropriate scale for action. Implementation of EU projects is one of the core 

activities in the circular economy transition and enables especially smaller cities and communities 

the funds needed to "start the work". 

 



Nuša LAZAR 

119 

 

3. 2 The example of the city of Maribor, Slovenia 

Projects funded by the EU budget cover a wide variety of areas and topics. Their impacts are 

all around us and their effect on our lives are felt daily. This is also the case in the city of Maribor, 

Slovenia. Also, as already mentioned, the city of Maribor introduced its Strategy for the Transition 

to a Circular Economy in the Municipality of Maribor in 2018 and was the first city in Slovenia to 

have such a strategy and was also among the first cities in the EU. In the past years, this strategy was 

a foundation and a baseline for different EU project applications in the field of sustainability and 

circular economy, which were successfully implemented. 

Based on past projects, initiatives, and actions the city of Maribor, is one of the pilots in the 

CCRI Pilots. The Circular Cities and Regions Initiative (CCRI) is an initiative of the European 

Commission that contributes to achieving the goals of the European Green Deal (EC, 2022a). In 2022, 

a call was made within the framework of CCRI, where the Podravje region (with the city of Maribor) 

was one of a total of 12 cities and regions in Europe that will receive support in the implementation 

of Circular Systemic Solutions (CSS) as part of the initiative and transfer their knowledge to other 

cities in regions on that topic in EU and outside EU borders. 

The journey of the city of Maribor towards a circular economy started with the GREENCYCLE 

project (Alpine-space, n. d.), funded through Interreg Alpine Space. The work in the project included 

professional and technical support in the preparation and adoption of the local strategy and action 

plan for the circular economy, as well as professional and technical support in the implementation of 

the pilot project and the establishment of a common digital platform. The Strategy for the transition 

of the City of Maribor to the circular economy was prepared and presented in 2018 and made Maribor 

the first city in Slovenia to have such a strategy, as well as being among the first cities in Europe with 

such a strategy (RRA Podravje – Maribor, n. d.).  

The first Horizon 2020 project in the field of circular economy in Maribor was the 

CINDERELA project (CINDERELA, n. d.). The project addressed the challenge of construction waste 

by assessing the urban waste to resource opportunities, development, and testing of new SRM-based 

construction materials and their application in large-scale demonstration pilots to develop a pan-

European pool of knowledge and showcase good practices essential to help construction companies 

build circular economy business models. SRM are secondary raw materials, materials, resulting from 

a recovery process, which becomes an input or new 'raw' material in the same or different new 

production from which it was generated. The partner of the project is the Maribor communal company 

Nigrad, a utility company; established in 1875 in the Municipality of Maribor as a fundamental 

maintenance and construction company. Nigrad has been an important partner of the Municipality of 

Maribor, acting especially intensely in the field of the use of secondary raw materials and in bringing 

new, innovative technologies and processes to the construction sector in the city. Nigrad participated 

in the Horizon 2020 project CINDERELA. As part of the pilot demonstrations of the project, the pilot 

production plants in Maribor (Slovenia), Madrid (Spain), and Skopje (North Macedonia) were 

established. With the pilot production plants, the project aimed to demonstrate the technical, 

technological, and administrative possibilities of processing and using various non-hazardous 

construction waste as well as some other waste types to produce more sustainable construction 

products. Following the pilot production, the SRM-based products played an important role in the 

construction demonstration where project partners revitalized degraded areas and built small facilities 

with accompanying access roads. However, as the waste is not suitable for direct use in construction 



THE IMPORTANCE OF EU-FUNDED PROJECTS FOR THE SUSTAINABLE DEVELOPMENT 

OF LOCAL COMMUNITIES 

120 

 

projects, it must be re-processed (RRA Podravje – Maribor, n. d.). The outcomes of the CINDERELA 

project are now used as a foundation for further research in the LIFE IP RESTART project (Life-

Restart, n. d.), whose main objective is to implement a comprehensive set of complementary 

technical, digital, environmental, social, and circular solutions to realize the full potential of the 

program, achieve maximum material self-sufficiency, and increase the circular return in the waste 

and resource sector. 

Water being an important issue in sustainable development and circular economy had to be 

addressed in the city of Maribor. This was done through the CITY WATER CIRCLE (Interreg Central 

Europe, n. d.), an Interreg Central Europe project, where Maribor Water Supply Utility was a partner 

(RRA Podravje – Maribor, n. d.). Climate change also creates hydrological risks and urban cities are 

increasingly vulnerable to flooding. The consumption of drinking water is increasing, and as a result, 

the amount of wastewater that needs to be treated is also increasing, all of which threatens the security 

of future water supplies. The CITY WATER CIRCLE project helped municipalities (among which 

was also Maribor) reform outdated urban water infrastructure systems using a circular economy 

approach that offered many economic and environmental benefits. Within the framework of the 

project, the promotion of a culture of saving water, including the use of non-conventional water 

sources was done. Smaller pilots were also part of the project, whereby Maribor’s also had its 

pilot.  The pilot action demonstrated the potential of using treated wastewater and rainwater to 

produce SRM-based construction products. Rainwater was harvested and stored and treated 

wastewater was transported from the nearby wastewater treatment plant. Materials produced from 

recycled water were used for road maintenance works and to revitalize degraded areas by Nigrad. 

The quality of the reused water was tested for its suitability for the SRM production process, and it 

was confirmed. The pilot is still at Dogoše (Nigrad’s pilot site for EU projects), where also pilots of 

the CINDERELA projects are and where other EU project pilots are demonstrated. Dogoše site is 

now a learning center for sustainable development projects not only in Maribor but in Slovenia itself. 

 

4 DISCUSSION AND CONCLUSSIONS 

Sustainability as a mega trend occurs in every segment of our lives and is promoted highly in 

the EU. The EU has action plans, initiatives, programs, and legislatives to support sustainable 

development and the green transition. One of the strategies of the EU to achieve sustainable 

development is to support it through various EU-founded projects. Cities and regions play an 

important role in making the circular transition happen, as they are at the center of key decisions 

determining economic growth, social well-being, and environmental benefits. So, there are also 

special funding opportunities and schemes only meant for cities and regions, like the European Urban 

Initiative or URBACT. 

In the article, we outlined some possibilities for EU-founded projects around sustainable 

development and which funds are suitable for certain areas. It is important to start the work in the 

field of sustainability and circular economy with the preparation of Circular Economy Initiatives. 

These are prepared by cities and regions and are the basis for a sustainable circular economy and 

support the transition to a circular economy, and on the other hand, they are a positive input in EU 

funded projects’ applications. 

The example of the city of Maribor, presented in the paper, furthermore, outlined the use of 

several EU funds for different areas to not only start the circular and sustainable transition but 



Nuša LAZAR 

121 

 

successfully work on it. It all started with the Strategy for the Transition to a Circular Economy in 

the Municipality of Maribor in 2018, Maribor being the first city in Slovenia to have it and started to 

implement it. The example of Maribor proves that EU-founded schemes can be used for different 

projects in the local communities to promote and support sustainable development and how, 

furthermore, problem-solving thinking and complementation of different knowledge areas, as a 

superstructure of project ideas can drive not only different projects but the green transition in a city. 

The activities of transferring knowledge and good practices in the field of circular economy 

and increasing the capacity of the city in this area, as well as assistance in the preparation of strategic 

documents of the circular economy could be provided with different partnerships with other cities by 

the city of Maribor. If nothing else, at least other cities can take the presented projects in the paper as 

examples of good practice, and they can learn something based on the previous projects and studies 

of the city of Maribor. 

With this paper, we want to advance the understanding of sustainable development and 

circular economy and the way research and funding for such projects have advanced. It is important 

to think about how cities and regions can contribute to sustainable development. It is better to invest 

time, effort, and money in sustainable development now than delaying it and having the “status q” 

still for some time or ether fighting it since even bigger challenges in correlation with higher costs of 

the transition to a green economy will for sure occur in the future. In any case, with the help of the 

EU through various schemes and funding opportunities, municipalities and regions can at least 

partially finance their green transitions. 

In the past, some research was done, on what impact different EU policies have on the 

development of countries, regions, and cities. Bradley (2006) evaluated the impact of European Union 

Cohesion policy in less-developed countries and regions. This research suggests that the ‘macro-

models’ can extract the pure Structural Funds policy impacts from the background of all the other 

domestic and external shocks that affect the economy at the same time. Cristofoletti et. al (2024) 

identified the Cohesion Policy as a multidimensional treatment composed of Hard (infrastructures) 

and Soft (business and technical support) investments. By applying a generalized propensity score 

analysis in a multiple continuous treatment scenario, they estimated how the Cohesion Policy impact 

in terms of regional economic growth depends on how the investments of the two fields are mixed. 

They found that when the expenditure is polarized toward one of the two fields, positive impacts are 

generated only when this field is the Soft investments. When only a limited part of the budget is 

allocated to Soft investments, also Hard investments deliver negligible (or even detrimental) impact. 

In the presence of consistent Soft investments, Hard investments also become impactful. However, 

there is still some empirical and data research missing in this field on what impacts other EU-funded 

projects have on the sustainable development of cities and regions, which is a good starting point for 

further research. 

 

REFERENCES  

1. AAL Programme. (n. d.). About us. Retrieved on 28.04.2024 https://www.aal-

europe.eu/about/ 

2. Alpine-space. (n. d.) GREENCYCLE. Retrieved on 13.5.2024 https://www.alpine-

space.eu/project/greencycle/  

https://www.aal-europe.eu/about/
https://www.aal-europe.eu/about/
https://www.alpine-space.eu/project/greencycle/
https://www.alpine-space.eu/project/greencycle/


THE IMPORTANCE OF EU-FUNDED PROJECTS FOR THE SUSTAINABLE DEVELOPMENT 

OF LOCAL COMMUNITIES 

122 

 

3. Bradley, J. (2006). Evaluating the impact of European Union Cohesion policy in less-

developed countries and regions. Regional Studies, 40(2), 189–200. 

https://doi.org/10.1080/00343400600600512 

4. CINDERELA. (n. d.) About. Retrieved on 13.5.2024 https://www.cinderela.eu/The-

project/About  

5. Cristofoletti, E., Gabriele, R., & Giua, M. (2024). Gaining in impacts by leveraging the 

policy mix: Evidence from the European Cohesion Policy in more developed regions. Journal 

of Regional Science, 64, 60–79. https://doi.org/10.1111/jors.12666  

6. EIT Climate-KIC. (2024). Who we are. Retrieved on 28.04.2024 at https://www.climate-

kic.org/ 

7. Ellen MacArthur Foundation. (2015). Delivering the circular economy a toolkit for 

policymakers. Retrieved on 22.04.2024 at https://www.ellenmacarthurfoundation.org/a-

toolkit-for-policymakers  

8. Ellen MacArthur Foundation. (2019). The butterfly diagram: visualising the circular 

economy. Retrieved on 22.04.2024 at https://www.ellenmacarthurfoundation.org/circular-

economy-diagram  

9. European Commission (EC). (n. d.). Eramus+: EU programme for education, training, youth 

and sport. Retrieved on 28.04.2024 https://erasmus-

plus.ec.europa.eu/sl/opportunities/opportunities-for-organisations 

10. European Commission (EC). (2020a). A new Circular Economy Action Plan. Retrieved on 

22.04.2024 at https://eur-lex.europa.eu/legal-

content/EN/TXT/?qid=1583933814386&uri=COM:2020:98:FIN  

11. European Commission (EC). (2020b). Roadmap for a Circular Resource Efficiency in cities. 

Retrieved on 22.04.2024 at https://ec.europa.eu/futurium/en/circular-economy/roadmap-

circular-resource-efficiency-cities.html 

12. European Commission (EC). (2022a). Circular Cities and Regions Initiative: Methodology 

for the implementation of a circular economy at the local and regional scale. Luxembourg: 

Publications Office of the European Union.  

13. European Commission (EC). (2022b). Sustainable development. Retrieved on 22.04.2024 at 

https://policy.trade.ec.europa.eu/development-and-sustainability/sustainable-

development_en  

14. European Commission (EC). (2023a). Circular economy action plan. Retrieved on 

22.04.2024 at https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en 

15. European Commission (EC). (2023b). Delivering the European Green Deal. Retrieved on 

22.04.2024 at https://commission.europa.eu/strategy-and-policy/priorities-2019-

2024/european-green-deal/delivering-european-green-deal_en 

16. European Parliament. (2023a). Circular economy: definition, importance and benefits. 

Retrieved on 22.04.2024 at https://www.europarl.europa.eu/topics/en/article/ 

20151201STO05603/circular-economy-definition-importance-and-benefits 

17. European Parliament. (2023b). Circular economy (infographics). European Parliament 

Research Service. Retrieved on 22.04.2024 at 

https://www.europarl.europa.eu/thinktank/infographics/circulareconomy/public/index.html 

https://doi.org/10.1080/00343400600600512
https://www.cinderela.eu/The-project/About
https://www.cinderela.eu/The-project/About
https://doi.org/10.1111/jors.12666
https://www.climate-kic.org/
https://www.climate-kic.org/
https://www.ellenmacarthurfoundation.org/a-toolkit-for-policymakers
https://www.ellenmacarthurfoundation.org/a-toolkit-for-policymakers
https://www.ellenmacarthurfoundation.org/circular-economy-diagram
https://www.ellenmacarthurfoundation.org/circular-economy-diagram
https://erasmus-plus.ec.europa.eu/sl/opportunities/opportunities-for-organisations
https://erasmus-plus.ec.europa.eu/sl/opportunities/opportunities-for-organisations
https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1583933814386&uri=COM:2020:98:FIN
https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1583933814386&uri=COM:2020:98:FIN
https://ec.europa.eu/futurium/en/circular-economy/roadmap-circular-resource-efficiency-cities.html
https://ec.europa.eu/futurium/en/circular-economy/roadmap-circular-resource-efficiency-cities.html
https://policy.trade.ec.europa.eu/development-and-sustainability/sustainable-development_en
https://policy.trade.ec.europa.eu/development-and-sustainability/sustainable-development_en
https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en
https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en
https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en
https://www.europarl.europa.eu/topics/en/article/%2020151201STO05603/circular-economy-definition-importance-and-benefits
https://www.europarl.europa.eu/topics/en/article/%2020151201STO05603/circular-economy-definition-importance-and-benefits
https://www.europarl.europa.eu/thinktank/infographics/circulareconomy/public/index.html


Nuša LAZAR 

123 

 

18. European Union (EU). (2019). Financing the circular economy. Retrieved on 25.04.2024 at 

https://circulareconomy.europa.eu/platform/en/financing-circular-economy  

19. European Urban Initiative. (n. d.). The Initiative. Retrieved on 28.04.2024 at 

https://www.urban-initiative.eu/#  

20. Interreg Central Europe. (n. d.). CWC. Retrieved on 13.5.2024 at https://programme2014-

20.interreg-central.eu/Content.Node/CWC.html  

21. Life-Restart. (n.d.). Project Restart. Retrieved on 13.5.2024 at https://life-restart.si/en/projekt/  

22. Musgrave, J., Raj, R. (2009). Introduction to a Conceptual Framework for Sustainable Events. 

In R. Raj and J. Musgrave (Eds.), Event Management and Sustainability (p. 1-11). 

Oxfordshire: CAB International.  

23. Smolović, S., Živanović, S., Abramović, N. & Živanović, M. (2023). Management of 

sustainable development and environmental protection. Agora International Journal of 

Economical Sciences, 17 (2), 142-157. https://doi.org/10.15837/aijes.v17i2.6452  

24. The Regional Development Agency for Podravje - Maribor (RRA Podravje - Maribor). (n. 

d.). Projects.  Retrieved on 13.5.2024 at https://rra-podravje.si/ 

25. OECD. (2020), The Circular Economy in Cities and Regions: Synthesis Report, OECD Urban 

Studies, OECD Publishing, Paris. https://doi.org/10.1787/10ac6ae4-en. 

26. OECD. (2023), Towards a National Circular Economy Strategy for Hungary, OECD 

Publishing, Paris, https://doi.org/10.1787/1178c379-en. 

27. Purvis, B., Mao, Y., Robinson, D. (2019). Three pillars of sustainability: in search of 

conceptual origins. Sustain Sci 14, 681–695 (2019). https://doi.org/10.1007/s11625-018-

0627-5 

28. United Nations Montenegro. (2024). Sustainable Development Goals. Retrieved on 4.6.2024 

at https://montenegro.un.org/en/sdgs  

29. URBACT. (n. d.). About URBACT. Retrieved on 28.04.2024 at https://urbact.eu/  

 

 

https://circulareconomy.europa.eu/platform/en/financing-circular-economy
https://www.urban-initiative.eu/
https://programme2014-20.interreg-central.eu/Content.Node/CWC.html
https://programme2014-20.interreg-central.eu/Content.Node/CWC.html
https://life-restart.si/en/projekt/
https://doi.org/10.15837/aijes.v17i2.6452
https://rra-podravje.si/
https://doi.org/10.1787/10ac6ae4-en
https://doi.org/10.1787/1178c379-en
https://doi.org/10.1007/s11625-018-0627-5
https://doi.org/10.1007/s11625-018-0627-5
https://montenegro.un.org/en/sdgs
https://urbact.eu/

