The additional funding has been announced following two successful previous rounds of the Circular Economy Fund to support the transition towards a zero waste and zero carbon Wales by keeping materials in circulation for as long as possible and avoiding waste.
Applications for the latest round can be submitted until 1st December 2020.
The funding has been launched alongside the launch of the repair and reuse fund for which £3.5 million of support was announced.
Lesley Griffiths, Environment, Energy and Rural Affairs Minister said: “The COVID-19 pandemic highlighted the growing importance of recycling to our economy and the role the circular economy has as a key part of a green recovery. By shortening supply chains, we can boost economic resilience and by keeping resources in use, we can take advantage of new economic opportunities. It will not only bring economic benefits, but also bring benefits for our environment and our communities.
“This additional £3.5m in funding, which opens for applications today, will help support publicly funded bodies to put the green recovery into action.
“Alongside the launch of the repair and reuse funding for our town and community centres, it sends a clear signal of the importance of this work to our commitment to decarbonisation and addressing the climate emergency.”