A new €200,000 funding initiative aimed at accelerating climate-smart construction and circular timber innovation is set to launch across Europe later this year, providing financial support for projects that unlock the value of underutilised wood resources.
The grant programme will be introduced by the Horizon Europe-funded WoodStock project on 15 September 2026. It has been designed to encourage practical construction solutions that make better use of timber materials often overlooked within existing supply chains.
Europe’s construction sector faces increasing pressure to reduce carbon emissions and improve resource efficiency.
At the same time, substantial volumes of wood remain underused. These materials include hardwood, low-grade timber, damaged wood, manufacturing residues and post-consumer wood products. Many of these resources currently have limited market applications despite their potential value.
The new funding programme aims to change that.
A total of €200,000 will be distributed through the initiative. Four successful projects will each receive grants of up to €50,000. Funding will support the development, testing and scaling of innovative wood-based construction solutions capable of advancing beyond Technology Readiness Level 5.
The programme has been created to help promising concepts move closer to commercial adoption.
Practical implementation is a key objective.
According to Stijn Brancart of TU Delft, a WoodStock project partner responsible for coordinating the grants, climate-smart construction requires more effective use of available timber resources while reducing waste throughout the value chain.
Brancart explained that the initiative seeks to demonstrate how circular approaches can be successfully implemented across multiple stages of the construction process.
The focus extends beyond material efficiency alone.
Greater collaboration between designers, builders, local communities and regional supply chains is also being encouraged. Such cooperation is viewed as essential for creating scalable and commercially viable circular construction models.
Applications will be welcomed from small and medium-sized enterprises, start-ups, non-profit organisations and consortia led by one of these entities.
Projects selected for funding will be expected to demonstrate clear potential for practical deployment.
Particular emphasis will be placed on solutions that utilise hardwood, residual timber, damaged wood, low-quality wood and post-consumer wood products. These resources are frequently underrepresented in mainstream building applications despite their availability.
New markets are being sought for these materials.
The programme aims to reduce waste streams while supporting stronger regional timber value chains. Increased utilisation of existing resources could also contribute to broader environmental objectives across Europe.
Circular construction principles remain central to the initiative.
Applicants will be encouraged to show how proposed projects improve resource efficiency, minimise waste generation and promote long-term sustainability outcomes. Innovative design approaches will also be considered favourably during the evaluation process.
Alignment with the New European Bauhaus framework will be important.
Proposals should demonstrate how projects reflect the initiative’s core principles of sustainability, collaboration and quality design. These values continue to shape many European funding programmes linked to the built environment.
A wide range of project activities will be eligible for support.
Funding may be used for prototype development, demonstration projects and technical validation activities. Physical and mechanical testing programmes can also be undertaken. In addition, support may be provided for certification preparation and market readiness assessments.
Training and knowledge sharing will play an important role.
Workshops, dissemination activities and stakeholder engagement programmes may be included within project plans. Greater awareness of circular construction practices is expected to support wider industry adoption.
Successful applicants will also participate in collaborative engagement activities.
Each funded project will be required to organise a co-creation session with one of the WoodStock Living Labs located in the Netherlands, France, Slovenia, Poland, Ireland or Norway.
These Living Labs have been established to encourage practical collaboration between industry participants, researchers and local communities.
Knowledge exchange is expected to be strengthened through these partnerships.
To assist organisations interested in applying, WoodStock will host two online information sessions ahead of the application deadline. The first event is scheduled for 5 June 2026 at 13:00 CEST, while the second will take place on 1 September 2026 at 16:00 CEST.
These sessions will provide guidance on eligibility requirements, project expectations and assessment criteria.
Industry interest is expected to be strong.
The growing emphasis on carbon reduction and resource efficiency has increased demand for innovative timber-based construction solutions across Europe. Many organisations are actively exploring new approaches that support circular economy objectives while maintaining commercial viability.
Brancart believes the construction sector requires solutions capable of moving rapidly from development to real-world application.
He noted that the industry urgently needs projects that can demonstrate how underutilised timber resources may be tested, validated and scaled effectively. Such initiatives could help establish climate-smart construction as a mainstream building practice rather than a niche alternative.
As Europe advances its climate ambitions, programmes such as WoodStock are expected to play an increasingly important role in promoting sustainable building materials, reducing waste and strengthening circular timber value chains throughout the region.
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