1. European Industrial Renaissance - Bio-Based Products & Sustainable Availability of Raw Materials Achim Boenke DG Enterprise and Industry Unit - Chemical Industry Brussels, 3 rd April 2014

2. The Policy Context (1) Bioeconomy for Europe Communication COM(2012) 60 final, Brussels, 13.02.2012; http://ec.europa.eu/research/bioeconomy/pdf/201202_innovating_sustainable_growth.pdf http://ec.europa.eu/research/bioeconomy/pdf/201202_innovating_sustainable_growth.pdf "The Bioeconomy Strategy and its Action Plan aim to pave the way to a more innovative, resource efficient and competitive society that reconciles food security with the sustainable use of renewable resources for industrial purposes, while ensuring environmental protection. They will inform research and innovation agendas in bioeconomy sectors and contribute to a more coherent policy environment, better interrelations between national, EU and global bioeconomy policies and a more engaged public dialogue. They will seek synergies and respect complementarities with other policy areas, instruments and funding sources, which share and address the same objectives, such as the Common Agricultural and Fisheries Policies (CAP and CFP), the Integrated Maritime Policy (IMP), environmental, industrial, employment, energy and health policies."

3. The Policy Context (2) European Industrial Renaissance COM(2014) 14/2 final, Brussels, 22/01/2014; http://ec.europa.eu/enterprise/initiatives/mission-growth/index_en.htm & http://ec.europa.eu/enterprise/initiatives/mission-growth/index_en.htm http://europa.eu/rapid/press-release_IP-14-42_en.htm?locale=en http://europa.eu/rapid/press-release_IP-14-42_en.htm?locale=enhttp://europa.eu/rapid/press-release_IP-14-42_en.htm?locale=en "These strategic, cross-cutting areas are: advanced manufacturing, key enabling technologies, clean vehicles and transport, bio-based products, construction and raw materials and smart grids." "Bio-based products: granting access to sustainable raw materials at world market prices for the production of bio-based products. This will require the application of the cascade principle in the use of biomass and eliminating any possible distortions in the allocation of biomass for alternative uses that might result from aid and other mechanisms that favour the use of biomass for other purposes (e.g. energy) *." * * For a description and interpretation of the cascading principle, see http://ec.europa.eu/research/bioeconomy/pdf/201202_commision_staff_working.pdf - Commission Staff Working Paper that is accompanying the Commission's Communication on the Bioeconomy Strategy – see pages 25-26, 2nd paragraph in section 1.3.3.1. and http://www.europarl.europa.eu/sides/getDoc.do?pubRef=- //EP//NONSGML+REPORT+A7-2013-0201+0+DOC+PDF+V0//EN – European Parliament Opinion on the Commission Communication on the Bioeconomy Strategy – see item 28 on pages 6 & 7.http://ec.europa.eu/research/bioeconomy/pdf/201202_commision_staff_working.pdfhttp://www.europarl.europa.eu/sides/getDoc.do?pubRef=- //EP//NONSGML+REPORT+A7-2013-0201+0+DOC+PDF+V0//EN

4. Biorefineries should adopt a cascading approach to the use of their inputs, favouring highest value added and resource efficient products, such as bio-based products and industrial materials, over bioenergy. The principle of cascading use is based on single or multiple material uses followed by energy use through burning at the end of life of the material, including taking into account the greenhouse gas emissions (GHG) mitigation potential. By-products and wastes from one production process are used to feed into other production processes or for energy. Biorefineries can thus contribute to the principles of a "zero-waste society". Staff Working Document Accompanying Bioeconomy Communication COM(2012), Brussels; http://ec.europa.eu/research/bioeconomy/pdf/201202_commision_staff_working.pdf http://ec.europa.eu/research/bioeconomy/pdf/201202_commision_staff_working.pdf Bioeconomy for Europe Communication COM(2012) 60 final, Brussels, 13.02.2012; http://ec.europa.eu/research/bioeconomy/pdf/201202_innovating_sustainable_growth.pdf http://ec.europa.eu/research/bioeconomy/pdf/201202_innovating_sustainable_growth.pdf Promote the setting up of networks with the required logistics for integrated and diversified biorefineries, demonstration and pilot plants across Europe, including the necessary logistics and supply chains for a cascading use of biomass and waste streams. Start negotiations to establish a research and innovation PPP for bio-based industries at European level (by 2013). Note: Proposal for a COUNCIL REGULATION on the Bio-Based Industries Joint Undertaking – COM (2013) 496 final, Brussels, 10.7.2013. The Policy Context (3)

5. The Policy Context (4) - European Industrial Renaissance COM(2014) 14/2 final, Brussels, 22/01/2014; http://ec.europa.eu/enterprise/initiatives/mission-growth/index_en.htm & http://ec.europa.eu/enterprise/initiatives/mission-growth/index_en.htm http://europa.eu/rapid/press-release_IP-14-42_en.htm?locale=en http://europa.eu/rapid/press-release_IP-14-42_en.htm?locale=enhttp://europa.eu/rapid/press-release_IP-14-42_en.htm?locale=en "The Commission will ensure policy neutrality in access to biomass for different purposes to enable efficient application of the cascade principle in the use of the biomass to ensure an efficient and sustainable use of natural resources. Also if deemed necessary, it will consider measures to enable industry to have access at global market prices to key inputs such as bio-ethanol or starch for bio-based industrial activities emerging from traditional sectors such as chemicals, paper and other forest-based industries." "Bio-based products: granting access to sustainable raw materials at world market prices for the production of bio-based products. This will require the application of the cascade principle in the use of biomass and eliminating any possible distortions in the allocation of biomass for alternative uses that might result from aid and other mechanisms that favour the use of biomass for other purposes (e.g. energy) *." * * For a description and interpretation of the cascading principle, see http://ec.europa.eu/research/bioeconomy/pdf/201202_commision_staff_working.pdf - Commission Staff Working Paper that is accompanying the Commission's Communication on the Bioeconomy Strategy – see pages 25-26, 2nd paragraph in section 1.3.3.1. and http://www.europarl.europa.eu/sides/getDoc.do?pubRef=- //EP//NONSGML+REPORT+A7-2013-0201+0+DOC+PDF+V0//EN – European Parliament Opinion on the Commission Communication on the Bioeconomy Strategy – see item 28 on pages 6 & 7.http://ec.europa.eu/research/bioeconomy/pdf/201202_commision_staff_working.pdfhttp://www.europarl.europa.eu/sides/getDoc.do?pubRef=- //EP//NONSGML+REPORT+A7-2013-0201+0+DOC+PDF+V0//EN

6. 2030 Climate & Energy Goals for a Competitive, Secure & Low-Carbon EU Economy Commission Press Release, IP/14/54 22/01/2014, Brussels, 22/01/2014; http://europa.eu/rapid/press-release_IP-14-54_en.htm http://europa.eu/rapid/press-release_IP-14-54_en.htm "An EU-wide binding renewable energy target: Renewable energy will play a key role in the transition towards a competitive, secure and sustainable energy system. Driven by a more market-oriented approach with enabling conditions for emerging technologies, an EU-wide binding target for renewable energy of at least 27% in 2030 comes with significant benefits in terms of energy trade balances, reliance on indigenous energy sources, jobs and growth." "Competitive, affordable and secure energy: The Commission proposes a set of key indicators to assess progress over time and to provide a factual base for potential policy response. These indicators relate to, for example, energy price differentials with major trading partners, supply diversification and reliance on indigenous energy sources, as well as the interconnection capacity between Member States." The Policy Context (5)

7. Operational Structures  Bio-economy Panel (all Stakeholders);  Bio-economy Commission Inter-Service Group;  Bio-economy Observatory;  Renewable Raw Materials (RRM) Group (Industry & MS-Agencies);  Commission Expert Group for Bio-based Products.

8. Source: European Commission, DG Enterprise and Industry, (2013); Industrial Policy - Monthly Note – Industrial Policy Indicators and Analysis - June 2013 – Special Feature Bio-Based Sector Achievements and Further Challenges; http://ec.europa.eu/enterprise/policies/industrial-competitiveness/economic-crisis/files/monthly-note-june-2013_en.pdf. http://ec.europa.eu/enterprise/policies/industrial-competitiveness/economic-crisis/files/monthly-note-june-2013_en.pdf Cascading Use Principle Illustration

9. Cascading Use Principle Example

10. Economic Sustainability Pillar – Input for the Bio- Observatory European Commission (2013), Bio-economy and sustainability: A potential contribution to the Bio-economy Observatory http://publications.jrc.ec.europa.eu/repository/bitstream/111111111/27454/1/lb-na-25743-en-n.pdf http://publications.jrc.ec.europa.eu/repository/bitstream/111111111/27454/1/lb-na-25743-en-n.pdf Estimated turnover and employment in EU bio-based industries:

11. EU-RTD_Project Results FP7-joint call for biorefinery research (2008) 3 projects / 52 M€ EUROBIOREF EUROBIOREF – fragmentation in the biomass industry BIOCORE BIOCORE – lignocellulosic biorefinery for sustainable processing of agricultural residues SUPRABIO SUPRABIO – integrate novel intensified unit operations for the production of 2 nd gen. Biofuels, intermediates and high value products ->Those projects have now a common sustainability assessment approach – for results see http://www.suprabio.eu/klanten/supra/media/documente n/Final_conference/1.1%20BIOCORE%20N%20Rettenmaie r%20IFEU%20Sustainability%20public.pdf or via www.suprabio.eu/events/final-conference/. -> Those projects have now a common sustainability assessment approach – for results see http://www.suprabio.eu/klanten/supra/media/documente n/Final_conference/1.1%20BIOCORE%20N%20Rettenmaie r%20IFEU%20Sustainability%20public.pdf or via www.suprabio.eu/events/final-conference/. http://www.suprabio.eu/klanten/supra/media/documente n/Final_conference/1.1%20BIOCORE%20N%20Rettenmaie r%20IFEU%20Sustainability%20public.pdf www.suprabio.eu/events/final-conference/ http://www.suprabio.eu/klanten/supra/media/documente n/Final_conference/1.1%20BIOCORE%20N%20Rettenmaie r%20IFEU%20Sustainability%20public.pdf www.suprabio.eu/events/final-conference/

12. EU-RTD_Project Results –EUROBIOREF, BIOCORE & SUPRABIO Comprehensive & streamlined integrated sustainability assessment;Comprehensive & streamlined integrated sustainability assessment; Powerful decision support tool for ex-ante evaluation & optimisationPowerful decision support tool for ex-ante evaluation & optimisation showing advantages & disadvantages; showing advantages & disadvantages; Need to consider the entire value chain including product portfolio & optimum technical implementation, local environmental & social impacts;Need to consider the entire value chain including product portfolio & optimum technical implementation, local environmental & social impacts; Success of biorefineries are not only a question of successful technologies.Success of biorefineries are not only a question of successful technologies.

13. EU-RTD-Project Results Common Methodologies for Sustainability ILCD – Handbook for LCA (2010) – JRC Activities. Information about sustainability: EU-Projects (until 2013) LC-IMPACT Work Completed & Results Available!  PROSUITE – PROspective SUstaInability Assessment of Technologies & linked to LC-IMPACT - Life Cycle Impact assessment Methods for imProved sustAinability Characterisation of Technologies – Work Completed & Results Available!  GLOBAL-BIO-PACT – Global Assessment of Biomass and Bioproduct Impacts on Socio-economics and Sustainability  “LCA to go” – Boosting LCA Use in European SME

15. PROSUITE – PROspective SUstaInability Assessment of Technologies

17. Mandate Bio-Based Products – Timelines for WGs

18. Linking Activities for Bio-Based Products Resource-efficient Europe - http://ec.europa.eu/resource-efficient-europe/Resource-efficient Europe - http://ec.europa.eu/resource-efficient-europe/ http://ec.europa.eu/resource-efficient-europe/ Flagship initiative under Europe 2020 EC Communication (COM/2011/0571): Roadmap to a Resource Efficient Europe, published in September 2011 Bio-economy - http://ec.europa.eu/research/bioeconomy/press/press_packages/index_en.htmBio-economy - http://ec.europa.eu/research/bioeconomy/press/press_packages/index_en.htm http://ec.europa.eu/research/bioeconomy/press/press_packages/index_en.htm EC Strategy and Action Plan "Innovating for Sustainable Growth: A Bioeconomy for Europe” Launched March 2012; “Bio-observatory” by JRC in preparation. EIP Agricultural Productivity and Sustainability - http://ec.europa.eu/agriculture/eip/index_en.htmEIP Agricultural Productivity and Sustainability - http://ec.europa.eu/agriculture/eip/index_en.htm http://ec.europa.eu/agriculture/eip/index_en.htm EIP Water Efficiency - http://ec.europa.eu/environment/water/innovationpartnership/index_en.htmEIP Water Efficiency - http://ec.europa.eu/environment/water/innovationpartnership/index_en.htm http://ec.europa.eu/environment/water/innovationpartnership/index_en.htm CAP towards 2020 - http://ec.europa.eu/agriculture/cap-post- 2013/communication/index_en.htmCAP towards 2020 - http://ec.europa.eu/agriculture/cap-post- 2013/communication/index_en.htmhttp://ec.europa.eu/agriculture/cap-post- 2013/communication/index_en.htmhttp://ec.europa.eu/agriculture/cap-post- 2013/communication/index_en.htm Horizon 2020 - http://ec.europa.eu/research/horizon2020/index_en.cfm?pg=home&video=noneHorizon 2020 - http://ec.europa.eu/research/horizon2020/index_en.cfm?pg=home&video=none http://ec.europa.eu/research/horizon2020/index_en.cfm?pg=home&video=none Packaging & Packaging Waste Dir. – Marine Litter (COM)Packaging & Packaging Waste Dir. – Marine Litter (COM) Waste Framework Directive – End-of-Waste-CriteriaWaste Framework Directive – End-of-Waste-Criteria Review of Bioenergy (on-going)Review of Bioenergy (on-going) Industrial Policy Update - http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDFIndustrial Policy Update - http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDF http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDF http://eur- lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0582:FIN:EN:PDF

19. Main Industrial Policy Challenges  Promote fair and non-discriminatory access for European industry to bio-mass, by strictly applying the "cascading use principle" for the use of biomass & entering into closer international cooperation.  Support technological innovation to better use biomass as a feedstock for value creation, by supporting PPPs under Horizon 2020 & facilitating access to finance for large scale demonstrators.  Promote the concept of the "circular economy", by facilitating the re- use of waste through standards & new business models that lead to better material efficiency & sustainability.  Stimulate the demand for bio-based products, by developing lists of product groups & facilitating networking between public procurers.

20. On-going Activities & Discussions  What is the growth potential of new "bio-based" products?  How to further strengthen & apply the "cascading use principle"?  Which role should European legislation/standardisation play to promote bio-based products?  How to better raise the awareness of public procurers for bio-based products? - Why should preferential treatment be given to bio-based products?

21. Thank you for your kind attention!