Climate change What does it mean for Lithuanian industry? Industry 4.0 Policy Division Chief Specialist Evaldas Petrauskas Climate change topic is one of most important topics for LT industry. There is strong political will and support for Lithuanian industry change to Low-CO2 emission and zero waste industry. One of our future goals is Industrial Transition to a Circular Economy. Many things needs to be done to achieve our ambitious plans.

Industrial policy priority areas Industrial symbiosis promotion Industry‘s competitiveness scaling Promotion of industrial digitisation Transition to circular economy Industrial symbiosis promotion and transition to circular economy are our priorities along with promotion of industrial digitization and competitiveness scaling. The theme of industrial symbiosis is new to the agenda of the Ministry of Economy and Innovation, but it is becoming significant not only in the context of industrial transformation but also in addressing climate neutral impacts.

National progress programme 2021-2030 Increase resource efficiency and promote industrial symbiosis (circular economy) Regulatory measures promoting the use of secondary raw materials are important for industrial symbiosis: Additional measures to improve waste management (waste separation, waste energy) Eco-labeling of products made from secondary raw materials Implementation of digital technologies in processes important for the circular economy Integration of criteria for a sustainable production environment Local taxation (to encourage recycling; to discourage or prohibit landfill or incineration of valuable materials) Promoting green public procurement (GPP) Regional Innovation Programs (criteria for resource efficiency and low carbon goods and services) Setting up regional business advisory centers (advising SMEs on energy and raw material efficiency) Industrial symbiosis promotion and transition to circular economy are our priorities along with promotion of digitization and competitiveness scaling. Everything is now interconnected. Work associated with CE was started some years ago. Ekoinovacijos from 2014..

Ministry of the Economy and Innovation initiatives related to climate change Support measures for of eco-innovation and green industry sectors Project - Roadmap for Lithuania’s industrial transition to a Circular Economy

Support measures for of eco-innovation and green industry sectors „Eko-inovacijos LT“ „Eko-inovacijos LT+“ Programme „Business Development, Innovation and SMEs“ Eko-inovacijos Lt measure is intended for non-technological implementation and promotion of eco-innovation: implementation of environmental management / management systems according to the requirements of international standards and / or production technological and / or environmental audits, which would provide analysis of rational use of resources and prevention of pollution; eco-friendly design. Supporting projects promoting ecodesign, with the aim of improving the environmental performance of products throughout their whole life cycle (sourcing and use of raw materials, production, packaging, transport, use) by systematically integrating ecological aspects from the earliest stages of product design. eco-labeling. Supporting projects promoting the eco-labeling of products. Certification of products or services that are less harmful to the environment and human health than other products in the same group. Eko-inovacijų LT+ The measure is aimed at implementation and promotion of technological eco-innovations in order to reduce the negative consequences of climate change and greenhouse effect, investments in tangible assets (equipment, technologies) are envisaged, which reduces the negative environmental impact of economic activities, promotes industrial symbiosis and ensures a lasting environmental effect. investment in cleaner production innovation (deployment) using rational resource use and pollution prevention techniques (eg process modernization / optimization) to reduce environmental impact and / or conserve natural resources, waste production, waste reuse and / or recycling, utilization of heat (recovery, regeneration), separation of streams, etc.). International programe Programme „Business Development, Innovation and SMEs“under Norway Grants 2014-2021

„Eko-inovacijos LT“ Eco-friendly design Eco-labeling Implementation of environmental management and /or management systems Eko-inovacijos Lt measure is intended for non-technological implementation and promotion of eco-innovation: implementation of environmental management / management systems according to the requirements of international standards and / or production technological and / or environmental audits, which would provide analysis of rational use of resources and prevention of pollution; eco-friendly design. Supporting projects promoting ecodesign, with the aim of improving the environmental performance of products throughout their whole life cycle (sourcing and use of raw materials, production, packaging, transport, use) by systematically integrating ecological aspects from the earliest stages of product design. eco-labeling. Supporting projects promoting the eco-labeling of products. Certification of products or services that are less harmful to the environment and human health than other products in the same group.

„Eko-inovacijos LT+“ Reduce the negative environmental impact of economic activities Promote industrial symbiosis Investment in cleaner production innovation Conserve natural resources Waste reuse and / or recycling Utilization of heat Separation of streams Eko-inovacijų LT+ The measure is aimed for implementation and promotion of technological eco-innovations in order to reduce the negative consequences of climate change and greenhouse effect, investments in tangible assets (equipment, technologies) are envisaged, which reduces the negative environmental impact of economic activities, promotes industrial symbiosis and ensures a lasting environmental effect. investment in cleaner production innovation (deployment) using rational resource use and pollution prevention techniques (eg process modernization / optimization) to reduce environmental impact and / or conserve natural resources, waste production, waste reuse and / or recycling, utilization of heat (recovery, regeneration), separation of streams, etc.).

Programme „Business Development, Innovation and SMEs“ under Norway Grants 2014-2021 The programme the goals: Creation of a higher added value Sustainable economic growth Boost of Lithuanian enterprises competitiveness  On 24 April 2018 Norway and Lithuania signed a Memorandum of Understanding on the implementation of the Norwegian Financial Mechanism 2014-2021, under which four programmes were approved to be funded. The Agency for Science, Innovation and Technology (MITA) has been appointed as an operator of the programme ‘Business development, Innovation and SMEs’. The programme is being implemented together with the partners–the Ministry of Economy and Innovation of the Republic of Lithuania and Norwegian agency ‘Innovation Norway’. focusing primarily on very small, small and medium size business, which will receive 75% of the eligible funds. Two fields have been chosen as the focus areas of the programme - Green Industry Innovation (including bioeconomy) and ICT. Therefore, development, application and commercialization of innovative green and ICT products and technologies, as well as greening of existing businesses and manufacturing processes will be at the core of the programme activities. Additionally, providing Lithuanian enterprises with a possibility to hone business skills is foreseen within the scope of the programme. The total sum of 15 million Euro will be allocated for the programme focus areas. The first call for proposals is expected to be launched in December 2019.

Roadmap for Lithuania’s industrial transition to a Circular Economy project objectives Circularity Analysis of Lithuanian industry Policy Proposals to support Industrial Transition to a Circular Economy Creation of the Roadmap Schedule Formal adoption of the Roadmap, business briefing and international exchange 2019-2020 middle

Lithuanian Industry Digitisation Roadmap 2019-2030 The Roadmap aims to assist in steering the Lithuanian manufacturing industry development towards global advancement. It introduces digitisation as the next stage of mechanization, automation and robotization. Industry 4.0 seeks to make the manufacturing processes integrated across a multitude of levels within supply chains. The implementation of the latest manufacturing technologies plays an important role in seeking our goals.

Lithuanian perspective Manufacturing is the largest sector of the Lithuanian economy, generating over 20% of Lithuanian GDP Almost 80% of total export of goods and services are the goods manufactured by industrial business Lithuania is rated No.1 in Europe and No.2 in the world (after China) on attractiveness in global manufacturing Stable operating environment and good quality/cost ratio has made Lithuania no. 1 in Europe and no. 2 in the world (after China), according to the Manufacturing Risk Index (2018)

Strategic Value Chain - Low CO2 emissions Industry AIM - A substantial contribution for climate neutrality in Europe through industrial projects and technological pathways achieving at least 80% and up to 95% greenhouse gas emissions reduction by 2050. Some recommendations: Continue support for Research and Innovation Develop guidelines and assessment methodologies for low CO2 emissions technologies Ensure the transition to Circular Economy Plan and develop infrastructure for a Low-CO2 Industry Develop a Highly skilled workforce The aim of the strategic value chain low CO2 emissions industry is to make a substantial contribution for climate neutrality in Europe through industrial projects and technological pathways achieving at least 80% and up to 95% greenhouse gas emissions reduction by 2050. It particularly focusses on a number of technological pathways and projects within the steel, cement and chemicals sectors; aiming that by roughly 2030 those processes can be utilized commercially or ready for upscaling activities (long-term technologies) While this Strategic Value Chain focuses on the aforementioned 3 industrial sectors - Steel, Cement and Chemicals, the respective Recommendations could be applied to other energy-intensive industry sectors as well since the challenges that they are facing are also similar.

Conclusion Industrial symbiosis is one of the essential parts of the circular economy. This process is an integral part of the FUTURE. Industrial symbiosis is an integral part of the circular economy of a city or region. Efficient use of raw materials, resources and wastes in the appreciation and development of industrial symbiosis between different companies involves collaboration between different actors and sectors, delivering environmental, business and development benefits, creating better value for secondary resources and promoting product and process innovation.

Climate change What does it mean for Lithuanian industry?