€500,000 Investment for Circular Economy Development in Armenia

Armenia's largest circular economy project, CirculUP!, is concluding its three-year operations this December, summarizing results and outlining future trends and prospects for the sector with industry stakeholders.

The program was implemented by the Impact Hub Network, in partnership with Impact Hub Yerevan and the Environment and Health NGO, with financial support from the European Union.

Launched three years ago, CirculUP!'s goal was to advance the circular economy in Armenia through capacity building of sector actors and raising public awareness. The program aimed to address one of the most pressing challenges of our time, creating a sustainable future, by promoting circular economy principles as a solution.

During this period, CirculUP! implemented educational and incubation programs, contributing to the creation and development of Armenia's circular economy ecosystem and strengthening the capacities of its key actors. Thanks to the program, more than thirty businesses and civil society organizations received grants totaling €500,000 to mainstream circular approaches and implement circular tools in business operations.

Opening remarks were delivered by Václav Štěrban, Deputy Head of the Cooperation Section of the EU Delegation, and representatives from the Ministry of Environment.  

“The CirculUP! Project has been an example of innovation, resilience, and collaboration,” said Václav Štěrban. “By embracing the idea of “closing the loop,” we have taken significant steps towards reducing waste, conserving resources, and building a more sustainable and regenerative economy for Armenia.”

A key manifestation of the program's mission continuity is the formation of the Armenian Circular Economy Coalition. This initiative, bringing together various sector experts, will continue its activities after the program's completion as a separately registered public organization, continuing to promote the spread of circular economy culture in our country.

For the first time in Armenia, a hackathon on the circular economy was organized within the program framework, with participation from over 80 participants, where the three best ideas received financial support.

Through the program's efforts, Armenia also hosted the first International Forum on Circular Economy in June, where the "Problem-Based Ecosystem Building Methodology" was presented. This transformative tool helps communities, organizations, and businesses address contemporary challenges through effective cross-sectoral collaboration. "The methodology was developed and tested through joint work of government structures, business, and civil society. Our experience confirms its effectiveness, and we are now ready to support the application of this model in other countries as well," noted Ani Baboomian, CirculUP! Program Director.

The implementing team particularly emphasizes, in the context of sectoral policy development, the recent approval in November of the Prime Minister's decree "On Approving the Framework Action Program for Green, Sustainable and Circular Economy Development," in whose development several coalition members participated, working closely with the Ministry of Economy.

One of the key components of CirculUP!'s success was measuring circularity impact, for which the coordinating Environment and Health NGO team localized and applied international methodology to assess the circularity indicators of the program's grant recipient businesses. Results show that participating businesses have achieved up to 80% efficiency in their raw material usage through circular business models and product design, striving toward zero-waste production.

CirculUP! will soon publish the results of a comprehensive study conducted within the program framework. The research on inclusive circular economy opportunities in Armenia is the first of its kind in this field and can become an invaluable resource in the context of national policy development and strategic investments.

Perhaps the most visible component of the closing event was the "Circular Products and Ideas" exhibition-fair, which became a unique platform for exchanging knowledge, experience, and circular approaches among all participants. "The tangible results of our grantees are the strongest evidence that Armenia’s economy can thrive within circular models. Their work demonstrates how the entire value chain can be strengthened, from design and production to reuse or recovery. One of CirculUP!'s most important results is the formation of a sectoral coalition with real ambassadors who will continue systemic changes," noted Gevorg Poghosyan, Executive Director of Impact Hub Yerevan. 

The conclusion of CirculUP! simultaneously became an opportunity to announce the newly launched the EU4Green Recovery East program, which is funded by the EU with a budget of €21.3 million for the Eastern Partnership region, and will build on the achievements of CirculUP! and other related initiatives in Armenia, including EU4Environment Green Economy. Through its circular economy component, implemented by UNIDO, the Environment Agency Austria (UBA), and UNECE, EU4GRE will continue supporting Armenia in advancing circular practices across key value chains, strengthening enterprise capacities, and fostering closer cooperation between businesses and policymakers.

“Through the EU-funded EU4Green Recovery East program, UNIDO will help Armenian enterprises adopt more resource-efficient production models and work hand in hand with national partners to scale up circular solutions that strengthen competitiveness and sustainability.” Tatiana Chernyavskaya, industrial development expert, UNIDO.