Eco-innovation policy in the European Union Peter Czaga Unit on Knowledge, Eco-innovation and SMEs Directorate-General for the Environment
Overview: • Why is eco-innovation relevant? • The EU Eco-innovation Action Plan • Financial support programmes • Other relevant instruments and initiatives • Eco-innovation and the circular economy
Why is eco-innovation relevant? • Definition : all forms of innovation activities resulting in or aimed at significantly improving progress towards the goal of sustainable development, through reducing negative impacts on the environment. Not only technologies, but also products, processes, services and business models. • The largest sub-sectors : renewable energy and energy efficiency, waste management , water supply, wastewater management, and recycled materials • The triple win : Environment: innovation needs a problem /we need to change the way we produce and consume, we need innovative systems Economy: externalities, the resilience and modernising the economies, job creation, lowering resource dependency Business: the added value comes from new markets, increased productivity and profitability, attracting investment, staying ahead of standards and regulation. 3
Barriers and drivers • Market is not always conducive to eco-innovation adoption. Role of governments. • Barriers : uncertainty of return on investment, difficulties with financing, regulations and standards • We could create more eco-innovation by making sustainable/renewable as a default instead of linear/fossil: Governments should create a level playing field: tax, subsidies, externalities priced Consumers, supply chains and finance community should think sustaibale Well targeted EU funding: Horizon, COSME, LIFE, regional, EFSI, etc. 4
Eco-innovation Action Plan - EcoAP Action 1 - Environmental policies and regulations Resource efficiency, circular economy; Mainstream in sectors: water, air, waste Action 2 - Demonstration projects Make the leap to market; Network of procurers Action 3 - Standards and performance targets Priorities: durability of products, waste, construction materials, insulation of buildings Action 4 - Finance and support services for SMEs Network of financiers; ETV; Enterprise Europe Network Action 5 - International cooperation Eco-innovation in bilateral environmental dialogue, strengthen SCP international network, Business & Technology Centres for technology transfer; International EI-Forum (with UNEP) Action 6 - New skills and jobs EU Skills Panorama mapping green jobs; educational and vocational training schemes Action 7 - European Innovation Partnerships EU, national and local institutions, experts, stakeholders for fast-track solutions Identified priorities: Agriculture, Raw materials, Water, Sustainable Cities
Support for Eco-innovation Instruments: Networks (Public Procurement of Innovation; Investments) • Clusters • Demonstration and Market replication projects • Financial instruments - equity and debt guarantees • Programmes 2014-2020: Horizon 2020 • LIFE+ • COSME • European Structural and Investment Funds •
Inneon Network for eco-innovation investments • launched in 2014 – duration 30 months – 2M € • improves access to funding for green businesses and accelerates commercialisation of eco-innovations • public and private intermediaries dedicated to European eco-innovation entrepreneurs • bridges the gap between investors and green small businesses by: • - attracting new investors to green business sector • - providing expert coaching to support entrepreneurs in developing viable business models • - delivering an effective matchmaking service • more info: www.inneon.eu
Innocat Network of public and private procurers • launched in 2013 – duration 36 months – 1 M € • addresses the fragmented demand for eco-innovative solutions in the catering sector • 2 public and 2 private buyers to tender eco-innovative catering products, services and solutions (in 2015) • addresses environmental impacts: transport, waste re-use and recycling, bio-based products and energy-efficient equipment • purchasing sectors: school and healthcare catering services, vending machines, bio-waste disposal systems • more info: http://www.sustainable-catering.eu/
Clusters • Support to innovative SMEs and emerging industries • Clusters of innovators - business consultancies - market intelligence • Focus on creativity, cross-cutting technologies, eco-innovative and resource efficient solutions http://ec.europa.eu/enterprise/initiatives/cluster/emerging-industries/index_en.htm Horizon 2020: Cluster facilitated projects for new industrial value chains (2015 - 24.9M - Innovation in SMEs Work Programme) CIP: Clusters and Entrepreneurship in support of Emerging Industries (2013 - 4.3M – 6 projects) the European Cluster Observatory: information, mapping tools and analysis of EU clusters and cluster policy with a particular focus on emerging industries
Funding Programmes: Horizon 2020 Innovation actions - € ~190M overall (2 yrs) EU funding rate – 70% (except non-profit, which are still funded 100%) • plans or designs for new products, processes or services • prototyping, testing, demonstrating, piloting, large-scale product, market replication • ‘demonstration or pilot’: validate the technical and economic viability of a new or improved • technology, product, process, service or solution in an operational environment ‘market replication’: support the first application in the market of an already demonstrated • innovation (not yet deployed in the market due to market failures/barriers to uptake) SME instrument - € ~550K-2.5M per project Single or groups of innovative SMEs bringing innovative business ideas to market • Provide support from business idea conception and planning (phase I) over business plan • execution and demonstration (phase II) to commercialisation (phase III). Phase I (proof-of-concept): explore the feasibility and commercial potential of your new • idea to develop an innovation project ( € 50,000 grant) Phase II (develop & demonstrate): develop business idea into market-ready product, • service or process ( € 0,5M to 2,5M grant) Phase III (go-to-market): additional EU support to enter the market (no grants) •
Funding Programmes: Horizon 2020 Societal Challenges Societal Challenge 5: Climate Action, Environment, Resource Efficiency and Raw • Materials (Waste; Water; Enabling the transition towards green economy and society through eco-innovation, also through green infrastructure solutions) Societal Challenge 2: Food Security, Sustainable Agriculture and Forestry, Marine, • Maritime and Inland Water Research and the Bioeconomy Societal Challenge 3: Secure, Clean and Efficient Energy • Societal Challenge 4: Smart, Green and Integrated Transport • Industrial Leadership Leadership in Enabling and Industrial Technologies: Nanotechnologies, advanced • materials, biotechnology, and advanced manufacturing and processing Access to Risk Finance: easier access, via financial instruments, to loans, • guarantees, counter-guarantees and hybrid, mezzanine and equity finance Innovation in SMEs: particular support for innovative SMEs •
Funding Programmes: Horizon 2020 InnovFin - EU Finance for Innovators joint initiative launched by the European Investment Bank Group (EIB and EIF) in • cooperation with the COM under H2020 range of debt and equity products and advisory services - effective boost to availability of • finance for R&I activities tailored products - from guarantees for intermediaries that lend to SMEs to direct loans to • enterprises - helping support R&I projects will operate in conjunction with COSME • financing products available: • follow-up of FP7 RSFF (Risk-Sharing Finance Facility)- over € 11 billion of finance to 114 R&I • projects worth more than € 30 billion expected to make over EUR 24bn of debt and equity financing available to innovative • companies to support EUR 48bn of final R&I investments by 2020
Funding programmes: COSME • access to finance, access to market, supporting the entrepreneurs • favourable conditions for business creation and growth • Loan Guarantee Facility guarantees and counter-guarantees for financial intermediaries • Equity Facility for Growth venture capital and mezzanine finance to expansion and growth-stage SMEs • WP 2017: European Resource Efficiency Excellence Centre • 'Your Europe‘ : database and search function of public and private funds using EU budget and accessible to SMEs
Funding programmes: LIFE WP 2014-17: thematic priorities for resource efficiency, green and circular • economy implementation of Roadmap for a Resource-Efficient Europe & the 7th EAP • priority to projects: • implementing the circular economy through actions spanning the value chain or ensuring the use of secondary resources/scrap materials/wastes in other industries or value chains new business models for resource efficiency (resource efficiency practices in SMEs) promoting the implementation of the European environmental footprint methodology linking regulatory, financial or reputational incentives to environmental performance by using EMAS or other environmental management instruments promoting Green Public Procurement
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