Circular Economy Markets Fund: Organics

Sustainability Victoria is supporting end markets for recycled organic products through the Circular Economy Markets Fund: Organics, a $2 million support package which aims to remove barriers and accelerate a sustained increase in the adoption of these products.

Through kerbside reform and the improved recovery of commercial and industrial organic waste, there is an increased supply of recycled organic products. This Fund supports the sustainable growth of end markets including agriculture, urban and amenity (for example, parks and gardens), and roadside amenity (for example roadside rehabilitation) to utilise the increased supply of better-quality Recycled Organic Products.

For the purposes of this grant, the terms Organics and Organic refers to organic waste diverted from landfill.

This grant is funded through the government’s circular economy policy, Recycling Victoria: a new economy.

Following are the guidelines for applying to this fund. These guidelines may be subject to change.

1. Fund overview

1.1 Fund objectives

Projects must meet one or more of the following objectives:

• identify, develop, and diversify end markets for eligible Recycled Organic Products.
• increase confidence in, demand for and uptake of eligible Recycled Organic Products in Victoria
• boost Victoria’s economy through local circular economy initiatives, helping businesses to grow in new ways and create new jobs.

This will be achieved by funding projects that:

• remove barriers that prevent or limit the adoption of Recycled Organic Products
• accelerate a sustained increase in the use of existing Recycled Organic Products.

1.2 Funding available

Grants from $15,000 to $400,000 are available per project.

1.3 Co-contribution

Applicants must contribute at least $1 for every $1 funded.

For business and local government applicants, co-contributions must be financial (cash).

For not for profit and community group applicants, co-contributions can be either financial (cash) or in-kind. Up to 100% of the co-contribution can be in-kind.

2. Eligibility

2.1 Who can apply

The program requires a single applicant to apply as Applicant. The Applicant is fully accountable for project delivery. For Collaborative Partnerships, this applicant is known as the Lead Applicant.

Eligible organisations must be one of the following organisation types:

• businesses
• Catchment Management Authorities
• Local Government
• industry associations
• not-for-profit organisations
• community groups (such as, Farmer Groups and farming owned organisations).

Applicants must be legally constituted organisations and:

• have a current Australian Business Number (ABN)
• have been operating for a minimum of 2 years by the application closing date (to be validated by the date that the organisation’s ABN is active from)
• meet or exceed the minimum co-contribution requirements
• agree to comply with the Terms of Participation in Grant Programs
• agree to comply with the funding terms and conditions:
  • for grants $50,000 or less read the Short-form grant funding agreement
  • for grants more than $50,000 read the General grant funding agreement.

We encourage applications from Aboriginal and Torres Strait Islander organisations.

Sustainability Victoria manages several grants. Although you can apply for more than one grant for a project, you can only receive one grant per project. If you’ve already applied for a Sustainability Victoria grant and now find this grant is more relevant or suitable, you can withdraw your application by emailing us.

Applicants who do not agree with the Grant Funding Agreement Terms and Conditions will be asked to provide full details of proposed amendments that would render the contractual provision acceptable to the Applicant in the SmartyGrants application form. Applicants should note that significant or substantive variations will not be viewed favorably unless the Applicant is able to demonstrate the necessity for such variations. Should applicants be successful, no further amendments to SV’s standard terms and conditions will be considered beyond the variations included in the application form.

Collaborative Partnership (optional)

Applicants may also choose to form a Collaborative Partnership for the purpose of undertaking the project. Applicants are known as Lead Applicants in a Collaborative Partnership.

Lead Applicants that choose to establish Collaborative Partnership(s) with other organisations, to support project delivery, will need to clarify the nature of its relationships with other organisations and demonstrate their commitments to the project. These other organisations will be considered Project Partners.

There are no restrictions as to who Lead Applicants can partner with or how many organisations are involved as Project Partners.

Project Partner(s) can be from any organisation that has:

• a direct, clear role in the project
• a current ABN
• a demonstrated co-contribution to the project.

If the project partner is engaged to undertake a critical role in the project, then a formal agreement, such as a memorandum of understanding, must be in place before the project commences. The formal agreement must include:

• roles and responsibilities in the project including timelines for the completion of project outcomes
• co-contributions committed to the project (financial and/or in-kind).
• agreement to be publicly announced as a Project Partner should funding be awarded.

Please note, Project Participants engaged to assist in the delivery of the Lead Applicant’s project are not considered a collaborative partnership and do not require a formal commitment.

2.2 Who cannot apply

The following cannot apply for funding as an Applicant:

• research institutions including schools, universities, and TAFEs
• State and Federal Governments
• unincorporated associations
• organisations not operating in Victoria
• organisations operating with an ABN that has been active for less than 2 years
• organisations which do not meet all requirements set out in the eligibility criteria.

The following Applicants (including those in Collaborative Partnerships) are ineligible for funding – those that:

• have failed to adequately address an environmental or safety breach or cannot demonstrate they are working effectively to resolve the breach
• are subject to current industrial relations investigation or prosecution
• have failed to satisfactorily progress or complete previous projects funded by Government within funding program timelines and without sufficient reason
• are unable to demonstrate financial capability to undertake the project
• have failed to satisfactorily progress or complete previous projects funded by SV within funding program timelines and without sufficient reason
• are insolvent and/or have owners/directors who are undischarged bankrupts.

2.3 What will be funded

Funding will support projects that:

• remove barriers that prevent or limit the adoption of Recycled Organic Products
• accelerate a sustained increase in the use of existing Recycled Organic Products.

Eligible Recycled Organic Products include:

• compost
• composted mulch
• bio fertilisers derived from processed organic waste
• dehydrated food waste products
• products derived from insect processing of organic waste.

Eligible project types

Examples of projects that will be funded include, but are not limited to:

• purchase capital or equipment (for example, decontamination equipment, or storage bunkers to distribute product for urban and amenity use)
• purchase processing equipment and infrastructure required to access markets for eligible products (for example, equipment to blend gypsum or lime with compost)
• develop information resources or decision-making tools to overcome a knowledge-based barrier to adoption
• facilitate the commercialisation of eligible products for new markets or sectors
• focus on increasing the adoption of Recycled Organics in agricultural, urban and amenity and roadside amenity markets directly (for example, field days and developing a business case for using Recycled Organic Products in parks and gardens)
• purchase eligible agricultural machinery to increase the adoption of Recycled Organics by farmers (for example, a compost spreader owned by a farming organisation and shared amongst farmers)
• conduct eligible pilots, trials, and demonstrations (for example, a commercial scale demonstration trial of Recycled Organics use)
• support commercialisation activities for eligible Recycled Organic Products.

Projects must:

• have not started before the funding agreement is signed, unless the project relates to the continuation of long term recycled organics field trials that monitor changes in soil and plant growth
• commence within 3 months of notification of proposal being successful (start date to be discussed at the point of establishing funding agreement)
• meet all regulatory and planning requirements
• focus on developing projects to be implemented in Victoria
• use eligible Recycled Organic Products sourced from Victorian businesses
• be completed by June 2024.

Project costs must be directly related to the project and can include:

• infrastructure or equipment directly related to achieving fund objectives
• purchase of agricultural machinery for use as an extension tool to enable farmers to trial recycled organics on a small scale (for example, a small spreader or applicator). Machinery must be owned by a farmer group or an organisation that delivers agricultural extension
• consultancy costs related to eligible project design and delivery
• project management costs related to the delivery of the project
• marketing, promotion and advertising costs related to the delivery of the project including online advertising (for example, Google and Facebook ads, social media campaigns)
• costs relating to the continuation of research and data capture for long term recycled organics field trials that monitor changes in soil and plant growth
• existing staff costs (such as salaries) that are demonstrated to be directly related to the project
• research, provided the experiment or trial is in the field and used primarily as an extension tool
• leasing of equipment to establish trials or demonstration sites
• facilitation and coordination of events and field days (must be for extension purposes only and not for individual benefit)
• market research and surveys
• printing, design and copy writing
• specialised equipment that is essential to project delivery (for example, equipment specifically designed for compost spreading, trailer designed to carry specialised equipment).

You can submit multiple applications. Each application must be for a different project. An application must not be for multiple projects.

2.4 What will not be funded

Projects that:

• do not seek to increase the adoption of eligible Recycled Organic Products by end users
• use unpasteurised organic products
• are likely to only facilitate the temporary adoption of recycled organics by end users
• relate to organic waste reduction and avoidance (for more information, visit Business Support Fund)
• relate to waste-to-energy and bio-energy facilities, including anaerobic digestion and biochar
• relate to materials other than the eligible Recycled Organic Products specified
• propose to subsidise end users to purchase Recycled Organics
• will be detrimental to soil health and/or soil function as determined by the evaluation panel
• are unsafe as determined by the evaluation panel
• are being undertaken in order to comply with regulation or a regulatory notice or order (for example, to deplete an above licence stockpile)
• do not meet regulatory or planning requirements
• request for retrospective funding, for costs incurred prior to signing a funding agreement with SV
• seek to increase the adoption of Recycled Organics in landfill capping or landfill haul roads.

The following costs are ineligible for funding:

• capital or equipment purchases that do not remove a barrier or increase the adoption of Recycled Organic Products by end users
• organics processing equipment that is solely intended to increase the processing capacity of an organics processing facility
• agricultural machinery intended for commercial use and owned by an individual agricultural enterprise
• lease or purchase of land
• leasing of equipment not related to the delivery of the project
• permit, licensing, approval costs
• routine or cyclical maintenance works
• repair of facilities damaged by vandalism, fire or other natural disasters where damage should be covered by insurance
• operating costs (for example, electricity, water and other utilities)
• staff costs (such as, salaries) not related to the project
• consultancy, contract work or project management costs not related to the project
• marketing, advertising, promotional costs not related to the project
• purchase of non-specialised vehicles that do not have an essential role in project delivery (for example, front end loaders, forklifts, tractors, trucks, cars and utes)
• travel for individual benefit
• international travel
• contingency costs.

3. Assessment process

3.1 Assessment criteria

The assessment panel will assess the application based on merit according to the criteria below.

What

Weighting: 40%

Describe what you are going to do and the outcomes and impact it will create, including:

• the problem(s) and/or opportunity the project seeks to address
• the end users who will adopt the recycled organics use as a result of your project
• how the adoption of recycled organics by these end users will be maintained over time
• the activities and other major outputs the project will deliver.

Demonstrate how your project meets the objectives of the Fund including how it will:

• increase confidence and investment in the adoption of recycled organics by end markets
• increase demand and uptake of products made from recycled organics
• boost Victoria’s economy through local circular economy initiatives, helping businesses to grow in new ways, and creating new jobs.

Who

Weighting: 20%

Demonstrate the Lead Applicant and Project Partners’ ability to deliver the project by showing they have the:

• capability (such as, skills, knowledge and experience)
• capacity (such as, time and staff resources).

Why

Weighting: 20%

Demonstrate why the project is needed, including:

• the need for Victorian Government financial assistance, including any impact on scope and timing if not funded
• how the project aligns with research guidance and identified market opportunities
• project benefits including:
  • economic benefits
  • environmental benefits
  • community benefits
  • other benefits (for example, diffusion of knowledge).

Describe why the project will improve market confidence and demand for recycled organic products.

How

Weighting: 20%

Demonstrate viability to successfully deliver the project, including:

• project method, including how the planned activities are influenced by research, data and team knowledge
• project plan including activities, milestones, dates and deliverables
• projects costs, including details of contributions and evidence of financial capacity to deliver the project
• risk identification and appropriate mitigation measures
• a strong data collection, monitoring and evaluation framework to track planned outcomes and other benefits.

3.2 Diversity consideration

SV may overlay rankings to achieve an overall mix of projects that represent:

• a geographical spread across Victorian regions
• spread across industries and types of applicants
• a mix of project types.

3.3 Due diligence checks

A risk-based approach will be used to assess the Applicant’s social, economic and environmental risks in relation to the project. This assessment will include the Applicant’s Related Entities and may include Project Partners and/or Project Participants (see Section 9: Program definitions).

Applicants (and their Related Entities and, if applicable, their Project Partners and/or Project Participants) must:

• have had no Environmental, Safety or Workplace Breaches in the last five years or, if there was a breach, Sustainability Victoria may assess that the Applicant’s breach poses a satisfactory level of risk;
• have not been the subject of an enforceable undertaking or successful litigation by the Fair Work Ombudsman for a breach of the Fair Work Act 2009 or a fair work instrument within the last five years;
• demonstrate financial capability to undertake the project;
• have adequate insurance as outlined in the funding agreement such as:
  • Public liability $20M minimum
  • Professional indemnity $5M minimum (if required)
  • WorkCover
• have not failed to satisfactorily progress or complete previous projects funded by Sustainability Victoria within funding program timelines and without sufficient reason; and
• manage any conflicts of interest adequately.

Assessment of satisfactory level of risk will include but not be limited to Sustainability Victoria’s consideration of:

• the seriousness of any finding/s;
• whether the finding/s has been resolved to the satisfaction of the relevant enforcement agency, or the Applicant can demonstrate it is working effectively to resolve the finding;
• the efforts made by the Applicant including implementation of management systems, to ensure no further finding/s occur; and
• whether, since the finding/s, the Applicant has had a satisfactory level of compliance with relevant Environmental and Safety Laws and Workplace Laws.

Sustainability Victoria may conduct due diligence checks on the Project Partners and/or Project Participants involved in the delivery of the project. The Applicant must ensure that any Project Partners and/or Project Participants agree to cooperate with this requirement and will provide information at Sustainability Victoria’s request.

Sustainability Victoria reserves the right not to award funding to Applicants where the due diligence risk (including that of Project Partners and Project Participants) is unsatisfactory or not able to be managed.

4. Funding conditions

Successful applicants approved for funding must do the following.

4.1 Before starting the project

• Participate in an inception meeting to discuss the project and funding agreement.
• Agree to realistic evidence-based and performance-based milestone payments.
• Provide Sustainability Victoria with insurance certificates of currency.
• Sign Sustainability Victoria’s funding agreement within 30 days of approval.
• Provide a project plan.
• If you receive funding of more than $250,000, provide a plan for capital works signage.

4.2 During and after the project

• Deliver the project as outlined in the application and comply with the funding agreement.
• Contribute to regular project progress updates or meetings.
• Notify Sustainability Victoria immediately about any delay or change to the project.
• Provide update reports to Sustainability Victoria at agreed milestones with evidence of expenditure, progress and performance.
• Provide adequate monitoring and evaluation of the project according to the funding agreement.
• Collect and release data to Sustainability Victoria. Sustainability Victoria may share or report on the data.
• Contribute to the project’s promotional activities (for example, provide Sustainability Victoria with support by reviewing and approving written stories or videos).
• Participate in and contribute to Sustainability Victoria’s activities to distribute the findings to broader stakeholders (for example, government and industry).
• Acknowledge that Sustainability Victoria has contributed funding in all communications related to the project.

5. Timeline

Project Guidance session: 20 May 2022

Applications open: 21 June 2022

Applications close: 19 July 2022

Information session: 24 June 2022

Notification of outcome: October 2022

Funding agreements established: October 2022

Projects commenced by: January 2023

Projects completed by: June 2024

6. How to apply

Applications will only be accepted when the Fund opens.

Before applying, we recommend you attend the Project Guidance session and information session.

The grant program involves a competitive, merit-based application process.

1. Ensure that your organisation can apply.
2. Ensure that your project is qualified.
3. Read Sustainability Victoria’s funding agreement. You must meet the terms and conditions to ensure funding.
   1. For grants $50,000 or less read the Short-form grant funding agreement.
   2. For grants more than $50,000 read the General grant funding agreement.
4. Read Sustainability Victoria’s Terms of participation in grant programs.
5. Create an account and start your application on the SmartyGrants website.

Submit your application by the closing date 19 July 2022. Late applications will not be accepted except under exceptional circumstances.

Your application

• Allow adequate time to plan, research, gather supporting documentation and draft your application.
• As this is a competitive grant, we cannot review drafts or provide feedback.
• You must use SmartyGrants, unless you have written permission from Sustainability Victoria.

Tips for using SmartyGrants

• Click ‘Save progress’ every 10 to 15 minutes. This prevents your data from being lost if something happens when you’re filling in the form. You will be automatically logged out of the system after 60 minutes of inactivity (where you did not click ‘Save progress’ or navigate between pages). Once logged out, you will lose any changes that were not saved.
• Wait for your file to be uploaded. Wait for your document to be successfully attached before going to another page. If not, the file upload will be cancelled. The maximum size per file is 25MB.
• Once you’ve submitted your application, you cannot make any changes. Check your application carefully.
• You will receive a confirmation email. When your application has been submitted successfully, you will get an automatic receipt from SmartyGrants.
• For any technical issues, please contact SmartyGrants on +61 3 9320 6888 during business hours.

7. Assistance available

7.1 Project Guidance

To support applications, SV has provided Guidance on the end uses for specific recycled organics that are likely to be adoptable. It also outlines the tactics or actions that are most likely to be effective in increasing the adoption for each specific end use. This Guidance was developed through industry consultation, and best possible science.

Applicants are encouraged to read this document and carefully consider the Guidance when designing their project. However, applicants are not obliged to utilise this Guidance in order to be successful in their grant proposal.

SV makes no representations, warranties, express or implied that use, recourse to or reliance on the Guidance will result in a successful application for grants funding from SV. The Guidance is provided to you on the basis that you will assess its relevance and accuracy for your particular purposes.

7.2 Project Guidance session

An online session was held on Friday 20 May 2022. The session provided an opportunity to learn more about the Project Guidance material described in section 7.1 of these guidelines.

A recording of the session is available on the information bulletin page.

7.3 Information session

An additional online information session will be held on 24 June. An information bulletin will be available after the session along with a recording.

Date: Friday 24 June 2022

Time: 11 to 12 pm

Link: Join the session

Read the information bulletin

Answers to questions we receive at our information sessions and via phone and email are published in our information bulletin.

We only publish answers to questions that are not already covered in these grant guidelines.

7.4 Contact us

We cannot review drafts or provide feedback.

Phone: +61 3 8656 6757 Monday to Friday, 10:00 am to 4:00 pm.

Email: grants.enquiries@sustainability.vic.gov.au

In the subject line, use the grant name ‘Organics Markets Fund’.

8. Why the Victorian Government is providing this funding

This fund is released as part of the Victorian Government’s Recycling Victoria policy.

The policy will fundamentally boost jobs and establish a recycling system Victorians can rely on.

Key Commitment 8 of the policy is to increase the use of recycled materials. Under this commitment, the Recycling Markets Acceleration package is being delivered. This fund is a component of this package.

The policy has a target to halve the volume of organic materials going to landfill between 2020 and 2030, with an interim target of 20% reduction by 2025. As Victoria works toward this target, there will be a corresponding increase in the volume of recycled organics supplied to the market. To reduce the risk of market failure from over supply, we must increase the demand for recycled organic products.

Sustainable markets are required for the increased supply of recycled organics. Accordingly, this Fund will increase market demand for recycled organics by increasing the adoption of these products by end users.

9. Definitions

Adoption

For the purposes of this fund, ‘adoption’ refers to the non-temporary incorporation of recycled organics into agricultural, urban and amenity and roadside amenity management systems

Applicant

The applicant who applies for the funding and is responsible for all details in the submission of an application and the contractual obligations under the funding agreement with Sustainability Victoria if successful for grant funding. Applicants must be legally constituted organisations and with a current ABN that has been active for a minimum of 2 years by the application closing date.

Business

A commercial enterprise seeking to generate profit through its activities, including Social Enterprises.

Charity

A Charity is an organisation that is not-for-profit and has only charitable purposes that are for the public benefit. A Charity must not be an individual, political party or government entity, and must be registered on the Australian Charities and Not-for-profits Commission Charity Register.

Co-contribution

The Applicant’s required cash or in-kind contribution to the total project income.

Collaborative Partnership

A relationship established between a Lead Applicant and Project Partner/s for the purposes of meeting common project objectives and outcomes. Collaborative Partnerships need to be demonstrated by a formal agreement between the partners that outlines the governance, financial and intellectual property arrangements and roles and responsibilities of each party. A formal agreement must either be in place or be finalised before commencement of the project.

Community Group

Any organisation engaged in charitable or other community-based activity operating under Australian law and not established for the purpose of making a profit. This definition can include not-for-profit entities pursuing a range of ‘for-profit’ commercial activities. It can also include organisations engaged in advocacy or other activities that may not be primarily charitable in nature. Unincorporated entities are ineligible to apply.

Direct Jobs

Actual new full-time positions created by your business. This can include training or upskilling of employees who would otherwise be made redundant through the implementation of your project.

Environmental, Safety or Workplace Breach

An environmental or safety breach is any past or current prosecution, reportable incident, investigation, notice, penalty, warning, regulatory intervention or enforcement action from the Environment Protection Authority (EPA), Victorian WorkCover Authority (WorkSafe) or Fair Work or failure to comply with any environmental, safety and workplace laws.

Environmental and Safety Laws

Environmental and safety laws are the Occupational Health and Safety Act 2004, Environment Protection Act 2017 or any other legislation, regulation, order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the protection and safety of persons or property or which regulate the environment including laws relating to land use planning, pollution of air or water, soil or groundwater contamination, chemicals, waste, the use, handling, storage or transport of dangerous goods or substances, greenhouse gas emissions, carbon trading, or any other aspect of protection of the environment.

Extension

Extension is the process of enabling change in individuals, communities and industries involved with primary industries and natural resource management.

Farmer Group

An incorporated organisation established for the purpose of furthering and/or advocating for common farming or agricultural goals.

Full-Time Equivalent Employees (FTE)

The hours worked by one employee on a full-time basis.

Calculating FTE

The calculation is used to convert the hours worked by several part-time employees into the hours worked by full-time employees. For example, you have three employees working the following - 40, 40 and 20 hours per week, giving you 100 hours per week in total.

Assuming full-time hours are 40 hours per week, your full-time equivalent calculation is 100 hours divided by 40 hours which equals 2.5 FTE.

In-kind Contribution

An in-kind contribution is a contribution of a good or a service other than cash.

In-kind contributions should include the cost for activities that are directly related to delivering your project. Examples include:

• staff time to manage project implementation (project management and installation costs that utilise existing internal resources);
• time spent on project activities by volunteers; and
• donated goods or services related to the project.

The following activities cannot be considered as in-kind contributions:

• operating expenses that are not directly associated with delivering the project; and
• opportunity costs such as staff ‘downtime’ during the installation of equipment or implementation of activities.

Applicants must fairly justify how they determined the dollar value for in-kind contributions.

Lead Applicant

The listed applicant for the purposes of a Collaborative Partnership. The Lead Applicant will be responsible for all details in the submission of an application and the contractual obligations under the funding agreement with Sustainability Victoria if successful for grant funding. The Lead Applicant is also responsible for managing the project outcomes and deliverables of the Collaborative Partnership.

Not-for-Profit (NFP)

A not-for-profit (NFP) organisation is an entity that does not operate for the profit or gain (either direct or indirect) of particular people. Unincorporated entities are ineligible to apply.

Organics

Refers to organic waste diverted from landfill.

Project Participant/s

An organisation engaged by the Applicant to assist in the delivery of the Applicant’s project, including but not limited to major subcontractors, contractors, product suppliers and consultants.

Project Partner/s

An organisation/s in a collaborative partnership with a Lead Applicant that have a critical role in the project and a formal commitment to delivering the support required to ensure the project’s success.

Recycled Organic Products

For the purposes of this fund, this term refers to eligible organic products, including:

• compost
• composted mulch
• bio fertilisers derived from processed organic waste
• dehydrated food waste products
• products derived from insect processing of organic waste.

Related Entities

Entities which are related to the Applicant, including:

• Holding companies of the Applicant
• Subsidiaries of the Applicant
• Subsidiaries of holding companies of the Applicant
• Companies with common directors or shareholders as the Applicant
• Companies that are a beneficiary under a trust of which the Applicant is a trustee
• Trustees of a trust under which the Applicant is a beneficiary
• Companies that conduct business at the same address as the Applicant, or the same address as the location of the activity for which the funding is sought

Related Person/s

Related Person means a director, officer, employee, agent, board member or contractor of the Applicant or a Related Entity.

Social Enterprise

A social enterprise is a business that trades to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment.

Social enterprises:

• are driven by a public or community cause, be it social, environmental, cultural or economic
• derive most of their income from trade, not donations or grants
• use the majority (at least 50%) of their profits to work towards their social mission.

Workplace Laws

Workplace laws are the Fair Work Act 2009, or any other legislation, regulation order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the provision of fair, relevant and enforceable minimum terms and conditions for all persons and to prevent discrimination against employees.