Regional Instruments The ECREIN experiences and regional aspects of financing eco-innovation Dr. Christian Kuehne, Ministry of the Environment, Nature Conservation and Transport Baden-Wuerttemberg

Agenda 1.ECREIN - European clusters and regions for eco-innovation and eco-investment network 2.ECREIN+ - European clusters and regions for eco-innovation network plus 3.Experiences and examples from Baden- Württemberg 4.Conclusions and suggestions of a region

ECREINetwork Based on an ETAP/CIP-Project from 1 st January to 31 st December 2007 Participation of 6 European regions Foundation with the signature of the ECREIN Charta in Milano at 14 th December EU: Proposal for a financial instrument suitable for eco- innovation and eco-businesses (particularly for SMEs) at regional level 2.Regions: Study, prepare and define the framework of a future European regional network for eco-innovation

ECREIN Charta 1.Development of regional policies for eco- innovation in Europe by setting up financial, economic and technical tools adapted to the regional level, 2.Exchanges between European partners for the preparation and implementation of common actions and initiatives in relation with European policies and instruments supporting innovation, environmental technologies and eco-enterprises, 3.Participation in European policies and action plans regarding environmental technologies and eco-innovation by improving a regional approach of these policies and action plans. Final ECREIN Conference in Milano at 14 th December 2007

ECREIN Results EU proposal of a single financial instrument valid for all the regions is not useful, necessary or relevant Framework and a set of regional financial instruments – well aligned, coherent, adaptable, easily understood, dynamic and effective Financial instruments for eco-innovation should be – totally integrated into the objectives of regional policy for eco- innovation – an issue of visibility as one of the essential elements – directed to middle-sized enterprises in general instead of SME in the sense of the EU definition (high innovativ companies up to employees)

ECREIN Results Significance and validity of the regional level in respect of improvement and support of eco- innovations – Knowledge about companies, their needs and their potential – Most relevant and effective level for actions of mobilisation and support for eco-innovators – Good level to engage public-private sector partnerships – Set up specific support structures

ECREIN+ -The Enhanced Network Based on the ECREIN Charta the six founder regions wanted to enhance the network – Expansion of the network with new regions from other European countries – Developing of tools and actions to implement innovative regional policies supporting eco- innovation and eco-businesses and easily adaptable to every European region INTERREG IVc project (01/ /2012) total budget 2 mio. €, EU fund 1,58 mio. €) ECREIN+ European Clusters and Regions for Eco-Innovations Network Plus

1.Rhône Alpes, France (Lead partner) 2.Baden-Württemberg, Germany 3.Malopolska, Poland 4.Andalusia, Spain 5.Lombardia, Italy 6.Ile-de-France, France 7.Upsalla, Sweden 8.Romanian Municipalities Association, Romania 9.Stara Zagora, Bulgaria 10.Coventry, U.K. 11.Galicia, Spain 12.Assembly of European Regions Supported by the European Commission ECREIN+ -The Enhanced Network ECREIN+ European Clusters and Regions for Eco-Innovations Network Plus

ECREIN+ Brief Summary Components 1.Management component 2.Communication component 3.Exchange of experience component I.WG:"Market knowledge of environmental goods and services (EGS) sector“ II.WG: “Regional policies and tools” III.WG: "Assessment of instruments to support eco- innovation" ECREIN+ European Clusters and Regions for Eco-Innovations Network Plus

ECREIN+ - Working Groups I.Improve knowledge of the market to know “Who we are working with?” II.Study regional policies and tools to support eco-innovation to know “how are we working with them?” III.Study the assessment of the eco-innovation instruments to know “how effective are the instruments?” ECREIN+ European Clusters and Regions for Eco-Innovations Network Plus

Baden-Württemberg High Innovative Region Top position in the EU related to the innovation index 4,4% GDP (15,7 billion €) for R&D (EU = 1,9%) 18% of all employees in high- tech branches (EU = 7%)

„Baden-Württemberg Eco-innovation Laboratory of Europe“ Premier of Baden-Württemberg Stefan Mappus in his governmental speech at 10 th March 2010 I.State Strategy of Environmental Technology and Resource Efficiency II.State Agency for Eco-innovation and Environmental Technology III.Competence Atlas of Environmental Technology and Resource Efficiency Baden-Württemberg

State Strategy of Environmental Technology and Resource Efficiency Identification of the future raw material demand of BW economy Improvement of resource efficiency in BW enterprises Analysis of trends and opportunities in eco-innovation and resource efficiency techniques Initiation and stimulation for development of innovative resource efficiency techniques

„Lifecycle“ of Eco-innovations Basic Research Applied Research Development Demonstration Distribution Export Basic Research Universities Max Planck Society Helmholtz Association of German Research Centres Environmental Research Environmental Research Programm Baden- Württemberg Plus BWPLUS Nanotechnology for Eco-innovations INANU Fraunhofer Society Development Environment. Technology/Eco-innovation ERDF Program Env. Technology Innovation Coupons Demonstration Program Rational Energy Use & Renewable Energy Eco-innovation Distribution Eco+ / Eco Fit BEST Start / BEST Intensiv Program Climate Protection Plus Program Geo- thermal Energy Energy Restoration of Old Buildings Environmental Technology Export Export Promotion Program Platform Environmental Technology Business Support - Start Up Funds, VC, SME Funds, Loans, Guarantees… Networks / Clusters Environmental Technology Award; European Energy Award Consulting Programs

Examples of Financing Instruments

ERDF Program Environmental Technology Development of environmental technology with special focus on – Resource efficiency – Extraordinary innovation – Supply chain SME consortium (and R&D centres) up to € per participant or up to 80% for SME / 100% R&D centres Barriers Bureaucracy SME Definition

(Eco)-Innovation Coupons/ Coaching / Assistant Innovation coupons for planning, development and realization of new goods, processes or services Version A – Research up to € or 80% Version B – Development up to € or 50% Coaching of innovation processes up to € (400 € per day); 50% Hiring an innovation assistant 30% of the salary or max € per month for 12 months more than applications from 760 enterprises

Position of a Region In contrast to other markets the market of environmental technology and eco- innovation is strongly influenced by the state Driven by environmental requirements Balance between requirements of the environment and the society, finite natural resources and economic interests as well as the legal frame conditions – longterm aspects State should be pro-active!

Suggestions of a Region EU: Set-up of eco-innovation friendly frame conditions – Challenging targets and political support (eco- innovation leadmarket, first e-mobility region) – Milestones and a roadmap for implementation – Balance between requirements and burdens – Integration of all stakeholders – Eco-innovations are more like techniques, they need the implementation in the society

Suggestions of a Region Support of eco-innovators on the regional level Information and experience exchange between the regions and the EC Enhancement of the European Network of Eco-innovation

Suggestions of a Region Consistent and complementary EU action plan for eco-innovation Driven by environmental targets Made-to-measure instruments considering the phases of the „eco-innovation lifecycle“ Synergismen between the single phases and reduction of barries Action plan for eco-innovation with own finances for operational activities

Dr. Christian Kuehne Ministry of the Environment, Nature Conservation and Transport Baden-Württemberg Research, Environmental Technology, Ecology Kernerplatz 9 D Stuttgart Germany Tel Fax