# EUR-Lex - 52011PC0811 - EN

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# 52011PC0811

**Proposal for a COUNCIL DECISION establishing the Specific Programme Implementing Horizon 2020 - The Framework Programme for Research and Innovation (2014-2020) /* COM/2011/0811 final - 2011/0402 (CNS) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The set of proposals for "Horizon
2020", drawn up fully in line with the Commission Communication 'A Budget
for Europe 2020'[1],
wholly supports the Europe 2020 strategy, which identified research and innovation
as central to achieving the objectives of smart, sustainable and inclusive
growth. The set consists of the proposals for:

(1)
a Framework Programme for Horizon 2020 (Treaty
on the Functioning of the European Union – 'TFEU');

(2)
a single set of Rules for Participation and
Dissemination (TFEU);

(3)
a single specific programme to implement Horizon
2020 (TFEU); as well as

(4)
a single proposal for the parts of Horizon 2020
corresponding to the Euratom Treaty.

The overall political narrative and
background to these legislative proposals is provided by a Commission
Communication adopted together with them, which addresses a number of major
cross-cutting elements such as simplification and how the approach to
innovation has been strengthened.

Horizon 2020 contributes directly to
tackling the major societal challenges identified in Europe 2020 and its
flagship initiatives. It will contribute equally to creating industrial
leadership in Europe. It will also increase excellence in the science base,
essential for the sustainability and long term prosperity and wellbeing of
Europe. To achieve these aims, the proposals include a full range of support
that is integrated across the research and innovation cycle. Horizon 2020
therefore brings together and strengthens activities currently funded under the
7th Framework Programme for research, the innovation parts of the
Competitiveness and Innovation Framework Programme, and the European Institute
of Innovation and Technology. In this way, the proposals are also designed to
realise a substantial simplification for participants.

2.           RESULTS OF CONSULTATIONS WITH THE
INTERESTED PARTIES AND IMPACT ASSESSMENTS

The preparation of the four proposals took
full account of the responses to an extensive public consultation based on a
Green Paper, "From challenges to opportunities: towards a common strategic
framework for EU research and innovation funding", COM(2011)48. Views were
expressed by the European Council, Member States and a wide range of
stakeholders from industry, academia and civil society.

The proposals also rely on two in-depth
impact assessments, drawing on stakeholder consultations, internal and external
evaluations, and contributions from international experts. The assessments
found that the Horizon 2020 option would bring more clarity of focus, best
achieve the necessary critical mass of effort at programme and project level,
and lead to greatest impact on the policy objectives and downstream economic,
competitiveness, and social benefits, while at the same time helping to simplify
matters by e.g. easing the administrative burden for participants, streamlining
the applicable rules and procedures, ensuring consistency between instruments
and pointing to a new risk/trust balance.

3.           LEGAL ELEMENTS OF THE PROPOSAL

3.1.        Legal base

The proposal integrates research and
innovation activities in a seamless way in order to achieve the policy
objectives.

As such, Horizon 2020 will be based on the
TFEU Titles "Industry" and "Research and technological
development and space" (Articles 173 and 182). The related Rules for
participation and dissemination will be based on the same TFEU Titles (Articles
173, 183 and 188). The "Industry" basis in both cases will relate
predominantly to the European Institute of Innovation and Technology (EIT), which
will be funded by a financial contribution from Horizon 2020. The EIT will not
appear at the specific programme level.

It is recalled that innovation activities
have been explicitly included in various Framework Programmes based on the
Research Title of the Treaty on the Functioning of the European Union and that
the current Framework Programmes also includes a range of innovation
activities. As a consequence, the specific programme that will implement
Horizon 2020 will be based on the TFEU Title "Research and technological
development and space" (Article 182) as the activities foreseen in them
will fall under those covered by this Title.

The proposal for the Euratom research and
training programme contributing to Horizon 2020 is based on Article 7 of the
Euratom Treaty.

3.2.        Subsidiarity and
proportionality principles

The proposals have been designed to
maximise Union added value and impact, focusing on objectives and activities
that cannot be efficiently realised by Member States acting alone. Union level
intervention can strengthen the overall research and innovation framework and
coordinate Member States' research efforts thereby avoiding duplication,
retaining critical mass in key areas and ensuring public financing is used in
an optimal way. Union level intervention enables continent-wide competition to
select the best proposals, thereby raising levels of excellence and providing
visibility for leading research and innovation. The Union level is also best
placed to support trans-national mobility, thereby improving training and
career development for researchers. A Union level programme is more able to
take on high risk and long-term R&D, thereby sharing the risk and
generating a breadth of scope and economies of scale that could not otherwise
be achieved. Union level intervention can leverage additional public and
private investments in research and innovation; contribute to the European
Research Area whereby knowledge, researchers and technology circulate freely;
and accelerate the commercialisation and diffusion of innovations across the
Single Market. Union level programmes are also needed to support policy making
as well as the objectives set by a range of policies. Full evidence is
presented in the accompanying impact assessments.

4.           BUDGETARY IMPLICATION

The budget of all proposals is presented in
current prices. The legislative financial statement attached to this proposal
sets out the budgetary, human and administrative resource implications. The
Commission may use, on the basis of a cost-benefit analysis, existing executive
agencies for the implementation of Horizon 2020, as provided for in Council
Regulation (EC) No 58/2003 laying down the statute for executive agencies to be
entrusted with certain tasks in the management of Union programmes.

2011/0402 (CNS)

Proposal for a

COUNCIL DECISION

establishing the Specific Programme
Implementing Horizon 2020 - The Framework Programme for Research and Innovation
(2014-2020)

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 182(4) thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Parliament[2],

Having regard to the opinion of the
European Economic and Social Committee[3],

Having regard to the opinion of the
Committee of the Regions[4],

Acting in accordance with a special
legislative procedure,

Whereas:

(1)
In accordance with Article 182(3) of the Treaty,
Regulation (EU) No [...] of the European Parliament and the Council of ...
concerning Horizon 2020 – the Framework Programme for Research and Innovation
("Horizon 2020")[5]
– is to be implemented through a specific programme which determines the
specific objectives and rules for their implementation, fixes its duration and
provides for the means deemed necessary.

(2)
Horizon 2020 pursues three priorities, namely
generating excellent science (“Excellent science”), creating industrial
leadership (“Industrial leadership”) and tackling societal challenges
(“Societal challenges”). Those priorities should be implemented by a specific
programme consisting of three Parts on indirect actions and one Part on the
direct actions of the Joint Research Centre (JRC).

(3)
While Horizon 2020 sets out the general
objective of that framework programme, the priorities and
the broad lines of the specific objectives and
activities to be carried out, the specific programme should define the specific
objectives and the broad lines of the activities which are specific to each of
the Parts. The provisions set out in Horizon 2020 on implementation apply fully
to this specific programme, including those relating to ethical principles.

(4)
Each Part should be complementary to and
implemented in a coherent way with the other Parts of the specific programme.

(5)
There is a critical need to reinforce and extend
the excellence of the Union’s science base and ensure a supply of world class
research and talent to secure Europe's long term competitiveness and
well-being. Part I “Excellent science” should support the activities of the
European Research Council on frontier research, future and emerging
technologies, Marie Curie Actions and European research infrastructures. These activites
should aim at building competence in the long term, focusing strongly on the
next-generation of science, systems and researchers, and providing support for
emerging talent from across the Union and from associated countries. Union
activities to support excellent science should help consolidate the European
Research Area and make the Union’s science system more competitive and
attractive on a global scale.

(6)
Research actions carried out under Part I “Excellent
science” should be determined according to the needs and opportunities of
science, without pre-determined thematic priorities. The research agenda should
be set in close liaison with the scientific community. Research should be
funded on the basis of excellence.

(7)
The European Research Council should replace and
succeed the European Research Council established by Commission Decision
2007/134/EC[6].
It should operate according to the established principles of scientific
excellence, autonomy, efficiency and transparency.

(8)
In order to maintain and increase the Union's industrial leadership
there is an urgent need to stimulate
private sector research and development and innovation investment, promote
research and innovation with a business driven agenda and accelerate the
development of new technologies which will underpin future businesses and
economic growth. Part II "Industrial leadership" should support
investments in excellent research and innovation in key enabling technologies
and other industrial technologies, facilitate access to risk finance for
innovative companies and projects, and provide Union wide support for
innovation in small and medium-sized enterprises.

(9)
Space research and innovation, which is a shared
competence of the Union, should be included as a coherent element in Part II "Industrial
leadership" in order to maximize the scientific, economic and societal
impact and, to ensure an efficient and cost effective implementation.

(10)
Addressing the major societal challenges
identified in the Europe 2020 strategy[7]
requires major investments in research and innovation to develop and deploy
novel and breakthrough solutions that have the necessary scale and scope. These
challenges also represent major economic opportunities for innovative companies
and therefore contribute to the Union's competitiveness and employment.

(11)
Part III “Societal challenges” should increase
the effectiveness of research and innovation in responding to key societal
challenges by supporting excellent research and innovation activities. Those
activities should be implemented using a challenge-based approach which brings
together resources and knowledge across different fields, technologies and
disciplines. Social sciences and humanities research is an important element
for addressing all of the challenges. The activities should cover the full
range of research and innovation with an emphasis on innovation-related
activities such as piloting, demonstration, test-beds, and support for public
procurement, pre-normative research and standard setting, and market uptake of
innovations. The activities should support directly the corresponding sectoral
policy competences at Union level. All challenges should contribute to the
overarching objective of sustainable development.

(12)
As an integral part of Horizon 2020, the Joint
Research Centre (JRC) should continue to provide independent customer-driven
scientific and technical support for the formulation, development,
implementation and monitoring of Union policies. In order to achieve its
mission the Joint Research Centre should carry out research of the highest
quality. In carrying out the direct actions in accordance with its mission, the
Joint Research Centre should place particular emphasis on areas of key concern
for the Union, namely smart, inclusive and sustainable growth, security and citizenship
and Global Europe.

(13)
The direct actions of the Joint Research Centre
should be implemented in a flexible, efficient and transparent manner, taking
into account the relevant needs of the users of the Joint Research Centre and
Union policies, as well as respecting the objective of protecting the Union's
financial interests. Those research actions should be adapted where appropriate
to these needs and to scientific and technological developments and aim to
achieve scientific excellence.

(14)
The Joint Research Centre should continue to
generate additional resources through competitive activities, including
participation to the indirect actions of Horizon 2020, third party work and, to
a lesser extent, the exploitation of intellectual property.

(15)
The specific programme should complement the
actions carried out in the Member States as well as other Union actions which
are necessary for the overall strategic effort for the implementation of the
Europe 2020 Strategy, in particular with actions in the policy areas of
cohesion, agriculture and rural development, education and vocational training,
industry, public health, consumer protection, employment and social policy,
energy, transport, environment, climate action, security, marine and fisheries,
development cooperation and enlargement and neighbourhood policy.

(16)
In order to ensure that the evaluations of
Horizon 2020 properly reflect the state of the art and that the specific
conditions for the use of the finance facilities reflect market conditions, the
power to adopt acts in accordance with Article 290 of the Treaty on the Functioning
of the European Union should be delegated to the
Commission to adapt or further elaborate the
performance indicators corresponding to the specific objectives of the specific
programme and the specific conditions for use of the finance facilities. It is of particular importance that the
Commission carries out appropriate consultations during its preparatory work,
including at expert level.

The Commission, when preparing and drawing-up
delegated acts, should ensure a timely and appropriate transmission of relevant
documents to the Council.

(17)
In order to ensure uniform conditions for the
implementation of the specific programme, implementing powers should be
conferred on the Commission to adopt work programmes for the implementation of
the specific programme.

(18)
The implementing powers relating to the work
programmes for Parts I, II and III, with the exception of the actions of the
European Research Council where the Commission does not depart from the
position of the Scientific Council, should be exercised in accordance with
Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16
February 2011 laying down the rules and general principles concerning
mechanisms for control by the Member States of the Commission's exercise of
implementing powers[8].

(19)
The Board of Governors of the Joint Research
Centre, set up by Commission Decision 96/282/Euratom of 10 April 1996 on the
reorganization of the Joint Research Centre[9],
has been consulted on the scientific and technological content of the specific
programme on the direct actions of the Joint Research Centre.

(20)
For reasons of legal certainty and clarity, Council
Decision 2006/971/EC of 19 December 2006 concerning the specific programme
"Cooperation" implementing the Seventh Framework Programme of the
European Community for research, technological development and demonstration
activities (2007 to 2013)[10],
Council Decision 2006/972/EC of 19 December 2006 concerning the specific
programme "Ideas" implementing the Seventh Framework Programme of the
European Community for research, technological development and demonstration
activities (2007 to 2013)[11],
Council Decision 2006/973/EC of 19 December 2006 concerning the specific
programme "People" implementing the Seventh Framework Programme of
the European Community for research, technological development and
demonstration activities (2007 to 2013)[12],
Council Decision 2006/974/EC of 19 December 2006 concerning the specific
programme "Capacities" implementing the Seventh Framework Programme
of the European Community for research, technological development and
demonstration activities (2007 to 2013)[13],
and Council Decision 2006/975/EC of 19 December 2006 concerning the specific
programme to be carried out by means of direct actions by the Joint Research
Centre under the Seventh Framework Programme of the European Community for
research, technological development and demonstration activities (2007 to 2013)[14], should be repealed,

HAS ADOPTED THIS DECISION:

TITLE I

ESTABLISHMENT

Article 1
Subject matter

This Decision establishes the specific
programme implementing Regulation (EU) No XX/2012 of the European Parliament
and of the Council[15]
and determines the specific objectives for Union support to the research and
innovation activities set out in Article 1 of that Regulation as well as the
rules for implementation.

Article 2
Establishment of the Specific Programme

1.           The specific programme
implementing Horizon 2020 – the Framework Programme for Research and Innovation (2014-2020) ("the
specific programme") is hereby established for the period from 1 January
2014 to 31 December 2020.

2.           In accordance with
Article 5(2) and 5(3) of Regulation (EU) No XX/2012 [Horizon 2020], the specific
programme shall consist of the following Parts:

(a)
Part I “Excellent science”;

(b)
Part II “Industrial leadership”;

(c)
Part III “Societal challenges”;

(d)
Part IV “Non-nuclear direct actions of the Joint
Research Centre (JRC)”.

Article 3
Specific objectives

1.           Part I “Excellent
science” shall strengthen the excellence of European research in accordance
with the priority “Excellent science” set out in Article 5(2)(a) of Regulation
(EU) No XX/2012 [Horizon 2020] by pursuing the following specific objectives:

(a)
strengthening frontier research, through the
activities of the European Research Council (ERC);

(b)
strengthening research in Future and Emerging
Technologies;

(c)
strengthening skills, training and career
development, through the Marie Skłodowska-Curie actions ("Marie Curie
actions");

(d)
strengthening European research infrastructures,
including e-infrastructures.

The broad lines of the activities for those
specific objectives are set out in Part I of Annex I.

2.           Part II “Industrial
leadership” shall strengthen industrial leadership and competitiveness in
accordance with the priority “Industrial leadership” set out in Article 5(2)(b)
of Regulation (EU) No XX/2012 [Horizon 2020] by pursuing the following specific
objectives:

(a)
boosting Europe's industrial leadership through
research, technological development, demonstration and innovation in the
following enabling and industrial technologies:

(i)      information and communication technologies;

(ii)      nanotechnologies;

(iii)     advanced materials;

(iv)     biotechnology;

(v)     advanced manufacturing and processing;

(vi)     space;

(b)
enhancing access to risk finance for investing
in research and innovation;

(c)
increasing innovation in small and medium-sized
enterprises.

The broad lines of the activities for those
specific objectives are set out in Part II of Annex I. There shall be specific
conditions for use of finance facilities under the specific objective in point
(b). Those conditions are set out in Point 2 of Part II of Annex I.

The Commission shall be empowered to adopt
delegated acts in accordance with Article 10 for the purpose of adapting those specific conditions if economic market conditions so require
or according to the results achieved by the Competitiveness and Innovation
Programme Loan Guarantee Facility and the Risk Sharing Instrument of the
Seventh Framework Programme Risk Sharing Financial Facility.

3.           Part III “Societal
challenges” shall contribute to the priority “Societal challenges” set out in
Article 5(2)(c) of Regulation (EU) No XX/2012 [Horizon 2020] by pursuing research,
technological development, demonstration and innovation actions which
contribute to the following specific objectives:

(a)
improving the lifelong health and wellbeing;

(b)
securing sufficient supplies of safe and high
quality food and other bio-based products, by developing productive and
resource-efficient primary production systems, fostering related ecosystem
services, along side competitive and low carbon supply chains;

(c)
making the transition to a reliable, sustainable
and competitive energy system, in the face of increasing resource scarcity,
increasing energy needs and climate change;

(d)
achieving a European transport system that is
resource-efficient, environmentally-friendly, safe and seamless for the benefit
of citizens, the economy and society;

(e)
achieving a resource-efficient and climate change
resilient economy and a sustainable supply of raw materials, in order to meet
the needs of a growing global population within the sustainable limits of the
planet's natural resources;

(f)
fostering inclusive, innovative and secure
European societies in a context of unprecedented transformations and growing
global interdependencies.

The broad lines of the activities for those
specific objectives are set out in Part III of Annex I.

4.           Part IV "Non-nuclear
direct actions of the Joint Research Centre" shall contribute to all of
the priorities set out in Article 5(2) of Regulation (EU) No XX/2012 [Horizon
2020] with the specific objective of providing customer-driven scientific and
technical support to Union policies.

The broad lines of that specific objective are
set out in Part IV of Annex I.

5            The specific programme
shall be assessed in relation to results and impact as measured against performance
indicators, including, where appropriate, publications in high impact journals,
the circulation of researchers, the accessibility of research infrastructures,
investments mobilised via debt financing and venture capital, SMEs introducing
innovations new to the company or the market, references to relevant research
activities in policy documents as well as occurences of specific impacts on
policies.

Further detail on the key performance
indicators which correspond to the specific objectives
set out in paragraphs 1 to 4 of this Article are set
out in Annex II.

The Commission shall be empowered to adopt
delegated acts in accordance with Article 10 for the purpose of adapting those indicators in view of new developments or further elaborating
them.

Article 4
Budget

1.           In accordance with Article
6(1) of Regulation (EU) No XX/2012 [Horizon 2020], the financial envelope for
the implementation of the specific programme shall be EUR 86198 million.

2.           The amount referred to in
paragraph 1 shall be distributed among the four Parts set out in Article 2(2)
of this Decision in accordance with Article 6(2) of Regulation (EU) No XX/2012
[Horizon 2020]. The indicative budgetary breakdown for the specific objectives
set out in Article 3 of this Decision and the maximum overall amount of the
contribution to the actions of the Joint Research Centre are set out in Annex
II to Regulation (EU) No XX/2012 [Horizon 2020].

3            No more than 6 % of the
amounts referred to in Article 6(2) of Regulation (EU) No XX/2012 [Horizon
2020] for the Parts I, II and III of the specific programme shall be for the
Commission's administrative expenditure.

4.           Where necessary,
appropriations may be entered in the budget beyond 2020 to cover technical and
administrative expenses, in order to enable the management of activities not
yet completed by 31 December 2020.

TITLE II

IMPLEMENTATION

Article 5
Work programmes

1.           The specific programme
shall be implemented by work programmes.

2.           The Commission shall
adopt common or separate work programmes for the implementation of the Parts I,
II and III of this specific programme referred to in points (a), (b) and (c) of
Article 2(2), except for the implementation of the actions under the specific
objective “Strengthening Europe's science base in frontier research”. Those
implementing acts shall be adopted in accordance with the examination procedure referred to in Article 9(2).

3.           The work programmes for
the implementation of the actions under the specific objective “Strengthening
Europe's science base in frontier research” as established by the Scientific
Council of the European Research Council under Article 7(2)(b), shall be
adopted by the Commission, by means of an implementing act. The Commission
shall depart from the work programme established by the Scientific Council only
when it considers that it is not in accordance with the provisions of this
Decision. In that case, the Commission shall adopt the work programme by means
of an implementing act in in
accordance with the examination procedure referred to in Article 9(2). The
Commission shall duly motivate this measure.

4.           The Commission shall
adopt a separate multi-annual work programme, by means of an implementing act,
for Part IV of the specific programme concerning the non-nuclear direct actions
of the Joint Research Centre referred to in point (d) of Article 2(2).

This work programme shall take into account the
opinion provided by the Board of Governors of the Joint Research Centre referred
to in Decision 96/282/Euratom.

5.           The work programmes shall
take account of the state of science, technology and, innovation at national,
Union and international level and of relevant policy, market and societal
developments. They shall contain information on coordination with research and innovation
activities carried out by Member States, including in areas where there are
joint programming initiatives. They shall be updated where appropriate.

6.           The work programmes for the implementation of the Parts I, II and III referred
to in points (a), (b) and (c) of Article 2(2) shall
set out the objectives pursued, the expected results,
the method of implementation and their total amount, including indicative
information on the amount of climate related expenditure, where appropriate.
They shall also contain a description of the actions to be financed, an
indication of the amount allocated to each action, an indicative implementation
timetable, as well as a multi-annual approach and strategic orientations for
the following years of implementation. They shall include for grants the
priorities, the essential evaluation criteria and the maximum rate of
co-financing. They shall allow for bottom-up approaches
that address the objectives in innovative ways.

In addition, those work programmes shall
contain a section which identifies the cross-cutting actions as referred to in
Article 13 of Regulation (EU) No XX/2012 [Horizon 2020], across two or more
specific objectives both within the same priority and across two or more priorities.
Those actions shall be implemented in an integrated manner.

Article 6
European Research Council

1.           The Commission shall
establish a European Research Council (“ERC”), which shall be the means of implementing
the actions under the Part I “Excellent science” which relate to the specific objective “Strengthening Europe's science base in frontier research”. The European Research
Council shall succeed the European Research Council set up by Decision
2007/134/EC.

2.           The European Research
Council shall be composed of the independent Scientific Council provided for in
Article 7 and the dedicated implementation structure provided for in Article 8.

3.           The ERC shall have a
President, who shall be chosen from among senior and internationally respected
scientists.

The President shall be appointed by the
Commission following a recruitment process involving a dedicated search
committee, for a term of office limited to four years, renewable once. The recruitment
process and the candidate selected shall have the approval of the Scientific
Council.

The President shall chair the Scientific
Council and shall ensure its leadership and liaison with the dedicated
implementation structure, and represent it in the world of science.

4.           The European Research
Council shall operate according to the principles of scientific excellence,
autonomy, efficiency, effectiveness, transparency and accountability. It shall
ensure continuity with European Research Council actions conducted under Council
Decision 2006/972/EC.

5.           The
activities of the European Research Council shall support research carried out
across all fields by individual and transnational teams in competition at the
European level. European Research Council frontier research grants shall be
awarded on the sole criterion of excellence.

6.           The Commission shall act
as the guarantor of the autonomy and integrity of the European Research Council
and shall ensure the proper execution of the tasks entrusted to it.

The Commission shall ensure that the
implementation of the European Research Council actions is in accordance with
the principles set out in paragraph 4 of this Article as well as with the
overall strategy of the Scientific Council referred to in Article 7(2).

Article 7
Scientific Council

1.           The Scientific Council
shall be composed of scientists, engineers and scholars of the highest repute
and appropriate expertise, ensuring a diversity of research areas and acting in
their personal capacity, independent of extraneous interests.

The members of the Scientific Council shall be
appointed by the Commission, following an independent and transparent procedure
for their identification agreed with the Scientific Council, including a
consultation of the scientific community and a report to the European
Parliament and Council.

Their term of office shall be limited to four
years, renewable once, on the basis of a rotating system which shall ensure the
continuity of the work of the Scientific Council.

2.           The Scientific Council
shall establish:

(a)
the overall strategy for the European Research Council;

(b)
the work programme for the implementation of the
European Research Council activities;

(c)
the methods and procedures for peer review and
proposal evaluation on the basis of which the proposals to be funded are
determined;

(d)
its position on any matter which from a
scientific and perspective may enhance the achievements and impact of the European
Research Council, and the quality of the research carried out;

(e)
a code of conduct addressing, inter alia, the
avoidance of conflict of interests.

The Commission shall depart from the positions
established by the Scientific Council in accordance with points (a), (c), (d),
and (e) of the first subparagraph only when it considers that the provisions of
this Decision have not been respected. In that case, the Commission shall adopt
measures to maintain continuity in the implementation of the specific programme
and the achievements of its objectives, setting out the points of departure
from the Scientific Council positions and duly motivating them.

3.           The Scientific Council
shall act in accordance with the mandate set out in point 1.1, Part I of Annex I.

4.           The Scientific Council
shall act exclusively in the interest of achieving the objectives of the part
of the specific programme relating to the specific objective “Strengthening
Europe's science base in frontier research” according to the principles set out
in Article 6(4). It shall act with integrity and probity and shall carry out
its work efficiently and with the greatest possibled transparency.

Article 8
Dedicated implementation structure

1.           The dedicated
implementation structure shall be responsible for the administrative
implementation and programme execution, as described in point 1.2 of Part I of
Annex Iand shall support the Scientific Council in the conduct of all of its
tasks.

2.           The Commission shall
ensure that the dedicated implementation structure follows strictly,
efficiently and with the necessary flexibility the objectives and requirements
of the European Research Council alone.

TITLE III

FINAL PROVISIONS

Article 9
Committee procedure

1.           The Commission shall be
assisted by a Committee. That committee shall be a committee within the meaning
of Regulation (EU) No 182/2011[16].

2.           Where reference is made
to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

3.           Where the opinion of the
committee referred to in paragraph 2 is to be obtained by written procedure,
that procedure shall be terminated without result when, within the time-limit
for delivery of the opinion, the chair of the committee so decides or a simple
majority of committee members so request.

Article 10
Exercise of the delegation

1.           The power to adopt
delegated acts is conferred on the Commission subject to the conditions laid
down in this Article.

2.           The power to adopt
delegated acts shall be conferred on the Commission for an indeterminate period
of time from the entry into force of this Decision.

3.           The delegation of power may
be revoked at any time by the Council. A decision of revocation shall put an
end to the delegation of the power specified in that decision. It shall take
effect the day following the publication of the decision in the Official
Journal of the European Union or at a later date specified therein. It shall
not affect the validity of any delegated acts already in force.

4.           As soon as it adopts a
delegated act, the Commission shall notify it to the Council.

5.           A delegated act shall
enter into force only if no objection has been expressed by the Council within
a period of two months of notification of that act to the Council or if, before
the expiry of that period, the Council has informed the Commission that it will
not object. That period shall be extended by one month at the initiative of the
Council.

6.           The European Parliament
shall be informed of the adoption of delegated acts by the Commission, or any
objection formulated to them, or of the revocation of the delegation of powers
by the Council.

Article 11
Repeal and transitional provisions

1.           Decisions 2006/971/EC,
2006/972/EC, 2006/973/EC, 2006/974/EC and 2006/975/EC are repealed with effect
from 1 January 2014.

2.           However, actions
initiated under Decisions referred to in paragraph 1 and financial obligations
related to actions pursued under those Decisions shall continue to be governed
by those Decisions until their completion. Where necessary, any remaining tasks
of the Committees established by the Decisions referred to in paragraph 1 shall
be undertaken by the Committee referred to in Article 9 of this Decision.

3.           The financial allocation
for the specific programme may also cover technical and administrative
assistance expenses necessary to ensure the transition between the specific
programme and the measures covered by Decisions 2006/971/EC, 2006/972/EC,
2006/973/EC, 2006/974/EC and 2006/975/EC.

Article 12
Entry into force

This Decision shall enter into force on the
third day following that of its publication in the Official Journal of the
European Union.

Article 13

This Decision is addressed to the Member
States.

Done at Brussels,

For
the Council

The
President

ANNEX I
Broad lines of the activities

Common elements for the indirect actions

1.           Programming

1.1.        General

Regulation (EU) No XX/2012 (Horizon 2020) provides
a set of principles in order to foster a programmatic approach whereby
activities contribute in a strategic and integrated way to its objectives and
in order to ensure strong complementarities with other related policies and
programmes across the Union.

The indirect actions of Horizon 2020 will
be implemented through the forms of funding provided for in the Financial
Regulation, in particular grants, prizes, procurement and financial
instruments. All forms of funding will be used in a flexible manner across all
of Horizon 2020's general and specific objectives, with their use being
determined on the basis of the needs and the specificities of the particular
specific objective.

Particular attention will be paid to
ensuring a broad approach to innovation, which is not only limited to the
development of new products and services on the basis of scientific and
technological breakthroughs, but which also incorporates aspects such as the
use of existing technologies in novel applications, continuous improvement,
non-technological and social innovation. Only a holistic approach to innovation
can at the same time tackle societal challenges and give rise to new
competitive businesses and industries.

For the societal challenges and the
enabling and industrial technologies in particular, there will be a particular
emphasis on supporting activities which operate close to the end-users and the market,
such as demonstration, piloting or proof-of-concept. This will also include,
where appropriate, activities in support of social innovation, and support to
demand side approaches such as pre-standardisation or pre-commercial
procurement, procurement of innovative solutions, standardisation and other user-centered
measures to help accelerate the deployment and diffusion of innovative products
and services into the market. In addition, there will be sufficient room for
bottom-up approaches and open, light and fast schemes under each of the
challenges and technologies to provide Europe's best researchers, entrepreneurs
and enterprises with the opportunity to put forward breakthrough solutions of
their choice.

Detailed priority setting during
implementation of Horizon 2020 will entail a strategic approach to programming
of research, using modes of governance aligning closely with policy development
yet cutting across the boundaries of traditional sectoral policies. This will
be based on sound evidence, analysis and foresight, with progress measured
against a robust set of performance indicators. This cross-cutting approach to
programming and governance will allow effective coordination between all of
Horizon 2020's specific objectives and will allow to address challenges which
cut across them, such as for instance sustainability, climate change or marine
sciences and technologies.

Priority setting will equally be based on a
wide range of inputs and advice. It will include, where appropriate, groups of
independent experts set up specifically to advise on the implementation of Horizon
2020 or any of its specific objectives. These experts group shall show the
appropriate level of expertise and knowledge in the covered areas and a variety
of professional backgrounds, including industry and civil society involvement.

Priority setting may also take into account
the strategic research agendas of European Technology Platforms or inputs from the
European Innovation Partnerships. Where appropriate, public-public partnerships
and public-private partnerships supported through Horizon 2020 will also
contribute to the priority setting process and to the implementation, in line
with the provisions laid down in Horizon 2020. Regular interactions with end-users,
citizens and civil society organisations, through appropriate methodologies
such as consensus conferences, participatory technology assessments or direct
engagement in research and innovation processes, will also be a cornerstone of
the priority setting process.

As Horizon 2020 is a programme for seven
years, the economic, societal and policy context in which it will operate may
change significantly during its life-time. Horizon 2020 needs to be able to
adapt to these changes. Under each of the specific objectives, there will
therefore be the possibility to include support for activities beyond the
descriptions set out below, where this is duly justified to address major
developments, policy needs or unforeseen events.

1.2.        Social sciences and
humanities

Social sciences and humanities research
will be fully integrated into each of the general objectives of Horizon 2020.
This will include ample opportunities for supporting such research through the
European Research Council, the Marie Curie actions or the Research
Infrastructures specific objective.

Social sciences and humanities are also mainstreamed
as an essential element of the activities needed to tackle each of the societal
challenges to enhance their impact. This includes: understanding the
determinants of health and optimising the effectiveness of healthcare systems,
support to policies empowering rural areas and promoting informed consumer
choices, robust decision making on energy policy and in ensuring a consumer
friendly European electricity grid, supporting evidence based transport policy
and foresight, support to climate change mitigation and adaptation strategies,
resource efficiency initiatives and measures towards a green and sustainable
economy.

In addition, the specific objective
'Inclusive, innovative and secure societies' will support social sciences and
humanities research into issues of a horizontal nature such as the creation of
smart and sustainable growth, social transformations in European societies,
social innovation, innovation in the public sector or the position of Europe as
a global actor.

1.3.        Small and medium-sized
enterprises (SMEs)

Horizon 2020
will encourage and support the participation of SMEs in an integrated way
across all specific objectives.

In accordance with Article 18 of Horizon
2020, dedicated measures as set out in the specific objective 'Innovation in
SMEs' (dedicated SME instrument) shall be applied in the specific objective
'Leadership in enabling and industrial technologies' and Part III 'Societal challenges'.
This integrated approach is expected to lead to around 15 % of their total
combined budgets going to SMEs.

1.4.        Access to risk finance

Horizon 2020 will help companies and other
types of organisation gain access to loans, guarantees and equity finance via
two facilities.

The debt facility will provide loans to
single beneficiaries for investment in research and innovation; guarantees to
financial beneficiaries making loans to beneficiaries; combinations of loans
and guarantees, and guarantees or counter-guarantees for national and regional
debt-financing schemes. It will include an SME window targeting R&I-driven
SMEs with loan amounts that complement finance to SMEs by the Loan Guarantee
Facility under the Programme for the Competitiveness of Enterprises and SMEs.

The equity facility will provide venture
and/or mezzanine capital to individual enterprises in the early stage (start-up
window). The facility will also
have the possibility to make expansion and growth-stage
investments in conjunction with the Equity Facility for Growth under the Programme for the Competitiveness of Enterprises and SMEs, including in funds-of-funds.

These facilities will be central to the
specific objective 'Access to risk finance' but may, where relevant, also be
used across all other specific objectives of Horizon 2020.

The equity facility and the SME window of
the debt facility will be implemented as part of two EU Financial Instruments that provide equity and debt to
support SMEs' R&I and growth, in conjunction with the equity and debt
facilities under the Programme for the Competitiveness of Enterprises and and SMEs.

1.5.        Communication and
dissemination

A key added value of research and
innovation funded at the Union level is the possibility to disseminate and
communicate results on a continent wide scale to enhance their impact. Horizon
2020 will therefore include, under all of its specific objectives, dedicated
support to dissemination (including through open access to research results),
communication and dialogue actions, with a strong emphasis on communicating
results to end-users, citizens, civil society organisations, industry and
policy makers. To this extent, Horizon 2020 may make use of networks for
information transfer. Communication activities undertaken in the context of
Horizon 2020 will also seek to raise public awareness on the importance of
research and innovation by means of publications, events, knowledge
repositories, databases, websites or a targeted use of social media.

2.           International cooperation

International cooperation with partners in
third countries is necessary to address effectively many specific objectives
defined in Horizon 2020, in particular those relating to Union external
policies and international commitments. This is the case for all the societal
challenges addressed by Horizon 2020, which are global in nature. International
cooperation is also essential for frontier and basic research in order to
capture the benefits from emerging science and technology opportunities.
Promoting researchers and innovation staff mobility at an international scale
is therefore crucial to enhance this global cooperation. Activities at the
international level are equally important to enhance the competitiveness of
European industry by promoting the take-up and trade of novel technologies, for
instance through the development of worldwide standards and interoperability
guidelines, and by promoting the acceptance and deployment of European
solutions outside Europe.

The focus of international cooperation in
Horizon 2020 will be on cooperation with three major country groupings:

(1)
industrialised and emerging economies;

(2)
enlargement and neighbourhood countries; and

(3)
developing countries.

Where appropriate, Horizon 2020 will
promote cooperation at regional or multilateral level. International
cooperation in research and innovation is a key aspect of the Union’s global
commitments and has an important role to play in the Union’s partnership with
developing countries, such as progressing towards the achievement of the
Millennium Development Goals.

Article 21 of Horizon 2020 sets out the
general principles for participation of organisations from third countries and
international organisations. As research and innovation in general benefit
largely from an openness towards third countries, Horizon 2020 will continue
with the principle of general openness, while encouraging reciprocal access to
third country programmes. For a number of areas, however, a more cautious
approach may be advisable to safeguard European interest.

In addition, a range of targeted actions
will be implemented taking a strategic approach to international cooperation on
the basis of common interest and mutual benefit and promoting coordination and
synergies with Member States activities. This will include a mechanism for
supporting joint calls and the possibility of co-funding programmes together with
third countries or international organisations.

Examples of areas where such strategic
international cooperation may be developed are:

(a)
The continuation of the European and
Developing Countries Clinical Trials Partnership (EDCTP2) on clinical
trials for medical interventions against HIV, malaria and tuberculosis;

(b)
Support by way of an annual subscription to the Human
Science Frontier Programme (HSFP) to allow non-G7 Member States of the
Union to fully benefit from the funding provided by the HSFP;

(c)
International consortium on rare diseases,
with a number of Union Member States and third countries. The aim of this
initiative is to develop by 2020, diagnostic tests for most rare diseases and
200 new therapies for rare diseases;

(d)
Support to the activities of the International
Knowledge-Based Bio-Economy Forum and the EU-US Task Force on
Biotechnology Research as well as collaborative links with relevant
international organisations and initiatives (such as global research alliances
on agricultural greenhouse gases and on animal health) ;

(e)
Contribution to multilateral processes and
initiatives, such as the Intergovernmental Panel on Climate Change (IPCC),
the Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES),
and the Group on Earth Observations (GEO);

(f)
The Space Dialogues between the Union and
the United States of America and Russia, the two major space faring nations, is
an extremely valuable one and forms the basis for the establishment of
strategic cooperation in space partnerships such as the International Space
Station or launchers, and collaboration in cutting edge space RTD projects.

3.           Complementarities and cross-cutting
actions

Horizon 2020 is structured around the
objectives defined for its three major parts: generating excellent science,
creating industrial leadership and tackling societal challenges. Particular
attention will be paid to ensuring adequate coordination between these parts
and fully exploiting the synergies generated between all specific objectives to
maximise their combined impact on the higher level policy objectives of the
Union. The objectives of Horizon 2020 will therefore be addressed through a
strong emphasis on finding efficient solutions, going well beyond an approach
based simply on traditional scientific and technological disciplines and
economic sectors.

Cross-cutting actions
will be promoted between Part I 'Excellent science' and the societal challenges
and the enabling and industrial technologies to develop jointly new knowledge,
future and emerging technologies, research infrastructures and key competences.
Research infrastructures will also be leveraged for broader usage in society,
for example in public services, promotion of science, civil security and
culture. Furthermore, priority setting during implementation for the direct
actions of the Joint Research Centre and the activities of the European
Institute of Innovation and Technology (EIT) will be adequately coordinated
with the other parts of Horizon 2020.

Furthermore, in many cases, contributing
effectively to the objectives of Europe 2020 and the Innovation Union will
require solutions to be developed which are interdisciplinary in nature and
therefore cut across multiple specific objectives of Horizon 2020. Particular
attention will be given to responsible research and innovation. Gender will be
addressed as a cross-cutting issue in order to rectify imbalances between women
and men, and to integrate a gender dimension in research and innovation
programming and content. Horizon 2020 includes specific provisions to
incentivise such cross-cutting actions, including by an efficient bundling of
budgets. This includes also for instance the possibility for the societal
challenges and enabling and industrial technologies to make use of the
provisions for financial instruments and the dedicated SME instrument.

Cross-cutting action will also be vital in
stimulating the interactions between the societal challenges and the enabling
and industrial technologies needed to generate major technological
breakthroughs. Examples of where such interactions may be developed are: the
domain of eHealth, smart grids, intelligent transport systems, mainstreaming of
climate actions, nanomedicine, advanced materials for lightweight vehicles or
the development of bio-based industrial processes and products. Strong
synergies will therefore be fostered between the societal challenges and the
development of generic enabling and industrial technologies. This will be
explicitly taken into account in developing the multi-annual strategies and the
priority setting for each of these specific objectives. It will require that
stakeholders representing the different perspectives are fully involved in the
implementation and in many cases, it will also require actions which bring
together funding from the enabling and industrial technologies and the societal
challenges concerned.

Particular attention will also be paid to
the coordination of activities funded through Horizon 2020 with those supported
under other Union funding programmes, such as the Common Agricultural Policy,
the Common Fisheries Policy or the Erasmus For All: the Union's programme for
Education, Training, Youth and Sport or the Health for Growth Programme. This
includes an appropriate articulation with the Cohesion policy funds, where
support to capacity building for research and innovation at regional level may
act as a 'stairway to excellence', the establishment of regional centres of
excellence may help close the innovation divide in Europe or support to
large-scale demonstration and pilot line projects may aid in achieving the
objective of generating industrial leadership in Europe.

4.           Partnering

For achieving sustainable growth in Europe,
the contribution of public and private players must be optimised. This is
essential for consolidating the European Research Area and for delivering on
the Innovation Union, the Digital Agenda and other Europe 2020 flagship
initiatives. Furthermore, responsible research and innovation requires that
best solutions be derived from interactions between partners having various
perspectives but common interests.

Horizon 2020 includes scope and a clear set
of criteria for setting up public-public and public-private partnerships.
Public-private partnerships can be based on a contractual arrangement between
public and private actors and can in limited cases be institutionalised
public-private partnerships (such as Joint Technology Initiatives and other
Joint Undertakings).

Existing public-public and public-private
partnerships may receive support from Horizon 2020, provided they address
Horizon 2020 objectives, they meet the criteria laid down in Horizon 2020 and
they have shown to make significant progress under the Seventh Framework
Programme for Research, Technological Development and Demonstration (FP7).

Initiatives under Article 185 of the Treaty
supported under FP6 and/or FP7 for which further support may be provided under
the above conditions include: the European and Developing Countries Clinical
Trials Partnership (EDCTP), Ambient Assisted Living (AAL), Baltic Sea Research
and Development Programme (BONUS), Eurostars and the European Metrology
Research Programme. Further support may also be provided to the European Energy
Research Alliance (EERA) established under the Strategic Energy Technology Plan
(SET Plan).

Joint Undertakings established in FP7 under
Article 187 of the Treaty, for which further support may be provided under the
above conditions are: the Innovative Medicines Initiative (IMI), Clean Sky,
Single European Sky ATM Research (SESAR), Fuel Cells and Hydrogen (FCH), and
Embedded computing systems (ARTEMIS) and Nanoelectronics (ENIAC). The latter
two may be combined into a single initiative.

Other public-private partnerships supported
under FP7 for which further support may be provided under the above conditions
are: Factories of the Future, Energy-efficient Buildings, European Green Cars
Initiative, Future Internet. Further support may also be provided to the
European Industrial Initiatives (EIIs) established under the SET Plan.

Further public-public partnerships and
public-private partnerships may be launched under Horizon 2020 where they meet
the defined criteria. This may include partnerships on Information and
Communication Technologies in the areas of Photonics and Robotics, on sustainable
process industries, on bio-based industries and on security technologies for
maritime border surveillance.

Part I

Excellent Science

1.           European Research Council

The European Research
Council (ERC) will promote world class frontier research. Research at and
beyond the frontiers of current understanding is both of critical importance to
economic and social welfare, and an intrinsically risky venture, progressing on
new and most challenging research areas and characterised by an absence of
disciplinary boundaries.

In order to stimulate
substantial advances at the frontiers of knowledge, the ERC will support individual
teams to carry out research in any field of basic scientific and technological
research which falls within the scope of Horizon 2020, including engineering, social
sciences and the humanities. As appropriate, specific research topics or target
groups (e.g. new generation researchers/emerging teams) may be taken into
account, following the objectives of the ERC and needs for efficient implementation.
Particular attention will be paid to emerging and fast-growing areas at the
frontier of knowledge, and at the interface between disciplines.

Independent
researchers of any age, including starting researchers making the transition to
being independent research leaders in their own right, from any country in the
world will be supported to carry out their research in Europe.

An
"investigator-driven" approach will be followed. This means that the ERC
will support projects carried out by researchers on subjects of their choice
within the scope of calls for proposals. Proposals will be evaluated on the
sole criterion of excellence as judged by peer review, taking account of
excellence in new groups, new generation researchers, as well as established teams,
and paying particular attention to proposals which are highly pioneering and
involve correspondingly high scientific risks.

The ERC will operate as a science-led
funding body consisting of an independent Scientific Council, supported by a
lean and cost-effective dedicated implementation structure.

The ERC Scientific Council will establish
the overall scientific strategy and will have full authority over decisions on
the type of research to be funded.

The Scientific Council will establish the
work programme to meet the ERC's objectives based on its scientific strategy as
below. It will establish the necessary international cooperation initiatives in
line with its scientific strategy, including outreach activities to increase
the visibility of the ERC for the best researchers from the rest of the world.

The Scientific Council will continuously monitor
the operation of the ERC and consider how best to achieve its broader
objectives. It will develop the ERC's mix of support measures as necessary to
respond to emerging needs.

The ERC will aim for excellence in its own
operations. The administrative and staffing costs for the ERC relating to the
Scientific Council and dedicated implementation structure will be consistent
with lean and cost-effective management. Administrative expenditure will be
kept to a minimum, consistent with ensuring the resources necessary for world
class implementation, in order to maximise funding for frontier research.

ERC awards will be made and grants operated
according to simple procedures that maintain the focus on excellence, encourage
initiative and combine flexibility with accountability. The ERC will
continuously look for further ways to simplify and improve its procedures in
order to ensure that these principles are met.

Given the unique structure and role of the
ERC as a science-led funding body the implementation and management of the
activities of the ERC will be reviewed and evaluated on an ongoing basis with
the full involvement of the Scientific Council to assess its achievements and
to adjust and improve procedures and structures on the basis of experience.

1.1.        The Scientific Council

In order to carry out its tasks, as set out
in Article 7, the Scientific Council will:

(1)          Scientific
strategy:

– establish the overall scientific strategy for the ERC, in the light
of scientific opportunities and European scientific needs;

– on a permanent basis, in accordance with the scientific strategy,
ensure the establishment of the work programme and necessary modifications,
including calls for proposals and criteria and, as may be required, the definition
of specific topics or target groups (e.g. starting /emerging teams);

(2)          Scientific
management, monitoring and quality control:

– as appropriate, from a scientific perspective, establish positions
on implementation and management of calls for proposals, evaluation criteria,
peer review processes including the selection of experts, the methods for peer review
and proposal evaluation and the necessary implementing rules and guidelines, on
the basis of which the proposal to be funded will be determined under the supervision
of the Scientific Council; as well as any other matter affecting the
achievements and impact of the ERC's activities, and the quality of the
research carried out, including the principal provisions of the ERC Model Grant
Agreement;

– monitor quality of operations and evaluate implementation and
achievements and make recommendations for corrective or future actions.

(3)          Communication
and dissemination:

– assure communication with the scientific community and key
stakeholders on the ERC's activities and achievements;

– regularly report to the Commission on its own activities.

The Scientific Council has full authority
over decisions on the type of research to be funded and is the guarantor of the
quality of the activity from the scientific perspective.

Where appropriate, the Scientific Council
shall consult with the scientific, engineering and scholarly Community.

The members of the Scientific Council shall
be compensated for the tasks they perform by means of an honorarium and, where
appropriate, reimbursement of travel and subsistence expenses.

The ERC President will reside in Brussels
for the duration of the appointment and devote most of his/her time[17] to ERC business. He/she will
be remunerated at a level commensurate with the Commission's top management.

The Scientific Council shall elect from
amongst its members three Vice-Chairs who shall assist the President in its
representation and the organisation of its work. They may also hold the title
of Vice-President of the European Research Council.

Support will be provided to the three Vice
Chairs to ensure adequate local administrative assistance at their home
institutes.

1.2.        Dedicated implementation
structure

The dedicated implementation structure will
be responsible for all aspects of administrative implementation and programme execution,
as provided for in the work programme. It will, in particular, implement the
evaluation procedures, peer review and selection process in accordance with the
strategy established by the Scientific Council and will ensure the financial and
scientific management of the grants.

The dedicated implementation structure will
support the Scientific Council in the conduct of all of its tasks as set out
above, provide access to the necessary documents and data in its possession,
and keep the Scientific Council informed of its activities.

In order to ensure an effective liaison
with the dedicated implementation structure on strategy and operational
matters, the leadership of the Scientific Council and the Director of the
dedicated implementation structure will hold regular coordination meetings.

The management of the ERC will be carried
out by staff recruited for that purpose, including where necessary, officials
from Union institutions, and will cover only the real administrative needs in
order to assure the stability and continuity necessary for an effective administration.

1.3.        Role of the Commission

In order to fulfil its responsibilities as
set out in Articles 6, 7 and 8 the Commission will:

–
ensure the continuity and renewal of the
Scientific Council and provide support for a standing Identification Committee
for the identification of future Scientific Council members;

–
ensure the continuity of the dedicated implementation
structure and the delegation of tasks and responsibilities to it taking into
account the views of the Scientific Council;

–
appoint the Director and the Senior Staff of the
dedicated implementation structure taking into account the views of the
Scientific Council;

–
ensure the timely adoption of the work
programme, the positions regarding implementing methodology and the necessary
implementing rules as provided by the ERC Rules of Submission and the ERC Model
Grant Agreement, taking into account the positions of the Scientific Council;

–
regularly inform the programme committee on the
implementation of the ERC activities.

2.           Future and Emerging Technologies

Future and Emerging Technologies (FET)
activities will concretise different logics of intervention, from completely
open to varying degrees of structuring of topics, communities and funding,
structured around three pillars:

2.1.        FET Open: fostering novel
ideas

Supporting a large set of embryonic, high
risk visionary science and technology collaborative research projects is
necessary for the successful exploration of new foundations for radically new
future technologies. By being explicitly non–topical and non-prescriptive, this
activity allows for new ideas, whenever they arise and wherever they come from,
within the broadest spectrum of themes and disciplines. Nurturing such fragile
ideas requires an agile, risk-friendly and highly interdisciplinary research approach,
going well beyond the strictly technological realms. Attracting and stimulating
the participation of new high-potential actors in research and innovation, such
as young researchers and high-tech SMEs is also important for nurturing the
scientific and industrial leaders of the future.

2.2.        FET Proactive: nurturing
emerging themes and communities

Novel areas and themes need to be matured,
by working towards structuring emerging communities and supporting the design
and development of transformative research themes. The main benefits of this
structuring yet explorative approach are emerging novel areas that are not yet
ready for inclusion in industry research roadmaps, and building up and
structuring of research communities around them. It makes the step from
collaborations between a small number of researchers, to a cluster of projects that
each address aspects of a research theme and exchange results.

2.3.        FET Flagships: tackling
grand interdisciplinary science and technology challenges

Research initiatives within this challenge
are science-driven, large-scale, multidisciplinary and built around a visionary
unifying goal. They tackle grand science and technology challenges requiring
cooperation among a range of disciplines, communities and programmes. The
scientific advance should provide a strong and broad basis for future
technological innovation and economic exploitation, as well as novel benefits
for society. The overarching nature and magnitude implies that they can only be
realised through a federated and sustained effort (in the order of 10 years
duration).

Activities in the three FET pillars are
complemented, by a wide range of networking and community-based activities
for creating a fertile and vibrant European base for science-driven research
towards future technologies. They will support the future developments of the
FET activities, foster the debate on implications of new technologies, and
accelerate impact.

2.4.        Specific implementation
aspects

A FET Advisory Board will provide
stakeholder input on the overall scientific strategy, including the definition
of the work programme.

FET will continue to be science-led supported
by a light and efficient implementation structure. Simple administrative
procedures will be adopted to maintain the focus on excellence in
science-driven technological innovation, encourage initiative and combine
flexibility with accountability. The most appropriate approaches will be used
for probing the FET research landscape (e.g., for portfolio analysis) and for
involving communities of stakeholders (e.g., for consultations). The aim will
be for continuous improvement, and the search for further ways to simplify and
improve procedures in order to ensure that these principles are met. Assessments
of the effectiveness and impact of the FET activities will be carried out,
complementing those at programme level.

Given its mission of fostering
science-driven research towards future technologies, FET strives to bring
together actors from science, technology and innovation. FET should therefore
play an active and catalytic role in stimulating new thinking, new practices
and new collaborations.

FET-Open groups activities for an entirely
bottom up search for promising new ideas. The high-risk implied by each such
idea is countered by exploring many of them. Efficiency in terms of time and
resources, low opportunity cost for the proposers, and undisputable openness to
non-conventional and interdisciplinary ideas are the key characteristics for these
activities. Light-and-fast continuously open submission schemes will seek for
high-risk promising new research ideas and will include tracks for new and high
potential innovation actors such as young researchers and high tech SMEs. It
will be complemented with activities to actively stimulate creative
out-of-the-box thinking.

FET proactive: this activity regularly
opens calls on several high-risk, high-potential innovative themes, funded at
such a level that several projects can be selected. These projects will be
supported by community building actions that foster activities such as joint
events, development of new curricula and research roadmaps. The selection of
themes will take into account excellence in science-driven research towards
future technologies, potential for creating a critical mass and impact on
science and technology.

A number of large scale focused initiatives
(FET Flagships) will be implemented. They will be based on partnerships that
enable combining Union, national and private contributions, with a balanced
governance that allows programme owners to have appropriate influence, as well
as a large degree of autonomy and flexibility in the implementation, enabling
the flagship to follow closely a broadly supported research roadmap. The
selection will take into account the unifying goal, the impact, integration of
stakeholders and resources under a cohesive research roadmap and support from
stakeholders and national/regional research programmes

3.           Marie Curie actions

3.1.        Fostering new skills by
means of excellent initial training of researchers

Europe needs a strong and creative human
resource base, mobile across countries and sectors, with the right combination
of skills to innovate and to convert knowledge and ideas into products and
services for economic and social benefit.

This will be achieved in particular by
structuring and raising excellence in a substantial share of the high-quality
initial training of early stage researchers and doctoral candidates throughout
Member states and associated countries. By equipping early stage researchers
with a diversity of skills that will allow them to face current and future
challenges, the next generation of researchers will benefit from enhanced
career perspectives in both public and private sectors, thereby enhancing also
the attraction of young people to research careers.

The action will be implemented through support
to Union-wide competitively selected research training programmes implemented
by partnerships of universities, research institutions, businesses, SMEs and
other socio-economic actors from different countries across Europe and beyond.
Single institutions able to provide the same enriching environment will also be
supported. Flexibility in the implementation of the objectives will have to be
ensured in order to address the different needs. Typically, successful
partnerships will take the form of research training networks or industrial
doctorates, while single institutions will usually be involved in innovative
doctoral programmes. In this frame, support is foreseen for the best early
stage researchers from any country to join these excellent programmes.

These training programmes will address the
development and broadening of core research competences, while equipping
researchers with a creative mind, an entrepreneurial outlook and innovation
skills that will match the future needs of the labour market. The programmes
will also provide training in transferable competences such as team-work,
risk-taking, project management, standardisation, entrepreneurship, ethics,
IPR, communication and societal outreach which are essential for the
generation, development, commercialisation and diffusion of innovation.

3.2.        Nurturing excellence by
means of cross-border and cross-sector mobility

Europe has to be attractive for the best
researchers, European and non-European. This will be achieved in particular by
supporting attractive career opportunities for experienced researchers in both
public and private sectors, and encouraging them to move between countries,
sectors and disciplines to enhance their creative and innovative potential.

Funding will be given to the best or most
promising experienced researchers, regardless of their nationality, who want to
develop their skills through a trans-national or international mobility
experience. They can be supported along all the different stages of their
career, including the most junior ones just after their doctoral degree or
equivalent experience. These researchers will receive funding on the condition
that they move from one country to another to broaden or deepen their
competences in universities, research institutions, businesses, SMEs or other
socio-economic actors of their choice, working on research and innovation projects
fitting their personal needs and interests. They will also be encouraged to
move from public to private sector or vice-versa through the support of temporary
postings. Part-time opportunities allowing combined positions in both public
and private sectors will also be supported to enhance the transfer of knowledge
between sectors and also encourage the creation of start-ups. Such tailor-made
research opportunities will help promising researchers to become fully
independent and to facilitate career moves between public and private sectors.

In order to fully exploit the existing
potential of researchers, possibilities to restart a research career after a break
will also be supported.

3.3.        Stimulating innovation by
means of cross-fertilisation of knowledge

Societal challenges are becoming more and
more global and cross-border and cross-sector collaborations are crucial to
successfully face them. Sharing of knowledge and ideas from research to market
is therefore vital and can only be achieved through the connection of people.
This will be promoted through the support of flexible exchanges of highly
skilled research and innovation staff between sectors, countries and
disciplines.

European funding will support short term
exchanges of research and innovation staff within partnerships of universities,
research institutions, businesses, SMEs and other socio-economic actors among
Europe, as well as between Europe and third countries to reinforce
international cooperation. It will be open to research and innovation staff at
all career levels, from the most junior (post-graduate) to the most senior
(management), including also administrative and technical staff.

3.4.        Increasing structural
impact by co-funding the activities

Stimulating regional, national or
international programmes to foster excellence and spread best practices of
Marie Curie Actions in terms of European-wide mobility possibilities for
researchers training, career development and staff exchange will increase the
numerical and structural impact of Marie Curie Actions. This will also enhance
the attractiveness of centres of excellence across Europe.

This will be achieved by co-funding new or
existing regional, national, private and international programmes to open-up to
and provide for international, intersectoral and interdicisplinary research
training, as well as cross-border and cross-sector mobility of researchers and
innovation staff at all stages of their career.

This will allow the exploitation of
synergies between Union actions and those at regional and national level,
combating fragmentation in terms of objectives, evaluation methods and working
conditions of researchers.

3.5.        Specific support and policy
actions

To efficiently meet the challenge it will
be essential to monitor progress. The programme will support the development of
indicators and the analysis of data related to researchers' mobility, skills
and careers with a view to identifying gaps in the Marie Curie actions and to
increasing the impact of these actions. These activities will be implemented
seeking synergies and close coordination with the policy support actions on
researchers, their employers and funders carried out under 'Inclusive,
innovative and secure societies'. Specific actions will be funded to support
initiatives to raise awareness on the importance of the research career, and to
disseminate research and innovation results emanating from work supported by
Marie Curie actions.

To further increase the impact of the Marie
Curie actions, the networking between Marie Curie researchers (current and
past) will be enhanced through a strategy of alumni services. These will range
from supporting a forum for contact and exchange between the researchers,
providing possibilities for exploring collaborations and job opportunities, to
the organisation of joint events and the involvement of the fellows in outreach
activities as ambassadors for Marie Curie actions and for the European Research
Area.

3.6.        Specific implementation
aspects

The Marie Curie actions will be open to
training and career development activities within all domains of research and
innovation addressed under the Treaty, from basic research up to market take-up
and innovation services. Research and innovation fields as well as sectors will
be chosen freely by the applicants.

To benefit from the worldwide knowledge
base, the Marie Curie Actions will be open to researchers and innovation staff,
as well as to universities, research institutions, businesses and other
socio-economic actors from all countries, including third countries under the
conditions defined in Regulation (EU) XX/2012 (Rules for Participation).

Throughout all the activities described above,
attention will be paid to encourage a strong participation of enterprises, in
particular SMEs, as well as other socio-economic actors for the successful
implementation and impact of the Marcie Curie actions. A long-term
collaboration between higher education, research organisations and the private
sector, taking into account the protection of intellectual property rights, is
promoted throughout all the Marie Curie actions.

The possibility is retained, if specific
needs arise, to target certain activities under the programme regarding
specific societal challenges, types of research and innovation institutions, or
geographical locations in order to respond to the evolution of Europe's
requirements in terms of skills, research training, career development and
knowledge sharing.

In order to be open to all sources of
talent, general measures to overcome any distortions in the access to the
grants will be ensured, for example by encouraging equal opportunities in all
Marie Curie actions and by benchmarking gender participation. In addition, the Marie
Curie actions will support researchers to get established on a more stable
career path and to ensure that they can achieve an appropriate work/life
balance, taking into account their family situation, and to contribute to
facilitate resuming a research career after a break. The principles of the
European Charter for Researchers and Code of Conduct for the Recruitment of
Researchers promoting open recruitment and attractive working conditions will
have to be endorsed and applied by all the funded participants.

To further enhance dissemination and public
engagement, beneficiaries of the Marie Curie actions will be required to plan
suitable outreach activities to the general public. This plan will be assessed
during the evaluation process as well as during the project follow-up.

4.           Research Infrastructures

The activities will aim at developing the
European research infrastructures for 2020 and beyond, fostering their
innovation potential and human capital and reinforcing European policy. Coordination
with the cohesion funding sources will be pursued to ensure synergies and a
coherent approach for the development of the research infrastructures.

4.1.        Developing the European
research infrastructures for 2020 and beyond

4.1.1.     Developing new world-class
research infrastructures[18]

The aim is to ensure the implementation, long-term
sustainability and efficient operation of the research infrastructures
identified by the European Strategy Forum on Research Infrastructures (ESFRI)
and other world-class research infrastructures, which will help Europe to
respond to grand challenges in science, industry and society. This objective
will address specifically those infrastructures that are setting up or that
have set up their governance, e.g. on the basis of the European Research
Infrastructure Consortium (ERIC) or any equivalent structure at European or international
level.

The Union funding will contribute to, as
appropriate:

(a)
the preparatory phase of future
infrastructures (e.g. detailed construction plans, legal arrangements,
multiannual planning);

(b)
the implementation phase (e.g. R&D
and engineering work jointly with industry and users, development of regional
partner facilities aiming at a more balanced development of the European
Research Area); and/or

(c)
the operation phase (e.g. access, data
handling, outreach, training and international cooperation activities).

This activity will also support design
studies for new research infrastructures through a bottom-up approach.

4.1.2.     Integrating and opening existing
national research infrastructures of pan-European interest

The aim is to open up key national research
infrastructures to all European researchers, from both academia and industry, and
to ensure their optimal use and joint development.

The Union will support networks that bring
together and integrate, on European scale, key national research
infrastructures. Funding will be provided to support, in particular, the
trans-national and virtual access of researchers and the harmonisation and improvement
of the services the infrastructures provide. Around one hundred networks of
infrastructures in all fields of science and technology would require such
support, with up to twenty thousands researchers per year benefitting from access
to these facilities.

4.1.3.     Development, deployment and
operation of ICT-based e-infrastructures[19]

The aim is to achieve by 2020 a single and
open European space for online research where researchers enjoy leading-edge, ubiquitous
and reliable services for networking and computing, and seamless and open
access to e-Science environments and global data resources.

To achieve this goal, support will be given
to: global research and education networks providing advanced, standardised and
scalable inter-domain services on-demand; grid and cloud infrastructures
providing virtually unlimited computational and data processing capacity; an
ecosystem of supercomputing facilities, advancing towards exa-scale; a software
and service infrastructure, e.g. for simulation and visualisation; real-time
collaborative tools; and an interoperable, open and trusted scientific data infrastructure.

4.2.        Fostering the innovation
potential of research infrastructures and their human capital

4.2.1.     Exploiting the innovation
potential of research infrastructures

The goal is to stimulate
innovation both in the infrastructures themselves and in their supplier and
user industry.

To this end, support will be provided to

(a)
R&D partnerships with industry to develop Union
capacities and industrial supply in high-tech areas such as scientific
instrumentation or ICT;

(b)
pre-commercial procurement by research
infrastructure actors to drive forward innovation and act as early adopters of technologies;

(c)
stimulate the use of research infrastructures by
industry, e.g. as experimental test facilities or knowledge-based centres; and

(d)
encourage the integration of research
infrastructures into local, regional and global innovation ecosystems

The Union actions will also leverage the
use of research infrastructures, in particular e-infrastructures, for public
services, social innovation, culture and education.

4.2.2.     Strengthening the human
capital of research infrastructures

The complexity of research infrastructures and
the exploitation of their full potential require adequate skills for their
managers, engineers and technicians, as well as users.

The Union funding will support the training of staff managing and operating research
infrastructures of pan-European interest, the exchange of staff and best
practices between facilities, and the adequate supply of human resources in key
disciplines, including the emergence of specific education curricula.

4.3.        Reinforcing European
research infrastructure policy and international cooperation

4.3.1.     Reinforcing European policy
for research infrastructures

The aims are to exploit synergies between
national and Union initiatives by setting up partnerships between relevant
policy makers and funding bodies (e.g. ESFRI, e-Infrastructure Reflection Group
(e-IRG), EIROforum organisations, national public authorities), to develop
complementarities and cooperation between research infrastructures and
activities implementing other Union policies (such as regional, cohesion, industrial,
health, employment, or development policy), and to ensure coordination between
different Union funding sources. Union actions will also support survey,
monitoring and assessment of research infrastructures at Union level, as well
as relevant policy studies and communication tasks.

4.3.2.     Facilitate strategic
international cooperation

The aim is to facilitate the development of
global research infrastructures i.e. research infrastructures that require
funding and agreements on a global scale. The aim is also to facilitate the
cooperation of European research infrastructures with their non-European
counterparts, ensuring their global interoperability and reach, and to pursue
international agreements on the reciprocal use, openness or co-financing of
infrastructures. In this respect due account will be taken of the recommendations
of the Carnegie Group of Senior Officials on Global Research Infrastructures.
Attention will also be given to ensure adequate Union participation in
coordination with international bodies such as the UN or the OECD.

4.4.        Specific implementation
aspects

During implementation independent expert
groups will be consulted, as well as stakeholders and advisory bodies, such as
ESFRI and the e-IRG.

The implementation will follow a
three-pronged approach: bottom-up where the exact content and partnership
of projects are not known; targeted where the specific research infrastructures
and/or communities addressed are well-defined; and named beneficiaries, for
example where a contribution to operational costs is provided to (a consortium
of) infrastructure operator(s).

The objectives under the last two
activities will be pursued through their own specific actions and, whenever
appropriate, through the actions under the first activity.

Part II

Industrial Leadership

1.           Leadership in enabling and industrial
technologies

General

The successful
mastering and deployment of enabling technologies by European industry is a key
factor in strengthening Europe's productivity and innovation capacity and
ensuring Europe has an advanced, sustainable and competitive economy, global
leadership in high-tech application sectors and the ability to develop unique
solutions for societal challenges.Innovation activities will be combined with
R&D, as an integral part of the funding.

An integrated approach to Key Enabling Technologies

A major
component of 'Leadership in Enabling and Industrial Technologies' are Key
Enabling Technologies (KETs), defined as micro- and nanoelectronics, photonics,
nanotechnology, biotechnology, advanced materials and advanced manufacturing
systems[20].
Many innovative products incorporate several of these
technologies simultaneously, as single or integrated parts. While each technology
offers technological innovation, the accumulated benefit from combining a
number of enabling technologies can also lead to technological leaps. Tapping
into cross-cutting key enabling technologies will enhance product
competitiveness and impact. The numerous interactions of these technologies
will therefore be exploited. Dedicated support will be provided for
larger-scale pilot line and demonstrator projects.

This will
include cross-cutting activities that bring together and integrate various
individual technologies, resulting in technology validation in an industrial
environment to a complete and qualified system, ready for the market. Strong
private sector involvement in such activities will be a prerequisite and
implementation will therefore notably be through public private partnerships.
To this extent and through a dedicated governance structure, a joint work
programme for cross-cutting KETs activities will be developed. Taking into
account market needs and the requirements of the societal challenges, it will
aim at providing generic KETs building blocks for different application areas,
including societal challenges.

Specific implementation
aspects

Innovation activities
will include the integration of individual technologies; demonstrations of
capacities to make and deliver innovative products and services; user and
customer pilots to prove feasibility and added value; and large-scale
demonstrators to facilitate market take-up of the research results.

Various individual
technologies will be integrated, resulting in technology validation in an
industrial environment to a complete and qualified system, ready for the
market. Strong private sector involvement in such activities will be a
prerequisite, notably through public-private partnerships.

Demand-side actions
will complement the technology push of the research and innovation initiatives.
These include making the best use of public procurement of innovation;
developing appropriate technical standards; private demand and engaging users
to create more innovation-friendly markets.

For nanotechnology and
biotechnology in particular, engagement with stakeholders and the general
public will aim to raise the awareness of benefits and risks. Safety assessment
and the management of overall risks in the deployment of these technologies
will be systematically addressed.

These activities will
complement support for research and innovation in enabling technologies, which
may be provided by national or regional authorities under the Cohesion Policy funds,
within the framework of smart specialisation strategies.

Strategic international
cooperation initiatives will be pursued in areas of mutual interest and benefit
with leading partner countries. Of particular, but not exclusive, interest for enabling and industrial
technologies are

–
the development of global standards;

–
removing bottlenecks in industrial exploitation
and conditions for trade;

–
the safety of nanotechnology-based and
biotechnology-based products;

–
the development of materials and methods to
reduce energy and resource consumption;

–
industry-led, collaborative international
initiatives within the manufacturing community; and

–
the interoperability of systems.

1.1.        Information and
Communication Technologies (ICT)

A number of activity lines will target ICT
industrial and technological leadership challenges and cover generic ICT
research and innovation agendas, including notably:

1.1.1.     A new generation of
components and systems: engineering of advanced and smart embedded components
and systems

The objective is to maintain and reinforce
European leadership in technologies related to smart embedded components and
systems. It also includes micro-nano-bio systems, organic electronics, large
area integration, underlying technologies for the Internet of Things (IoT)[21] including platforms to support
the delivery of advanced services, smart integrated systems, systems of systems
and complex systems engineering.

1.1.2.     Next generation computing:
advanced computing systems and technologies

The objective is to leverage European
assets in processor and system architecture, interconnect and data localisation
technologies, cloud computing, parallel computing and simulation software for
all market segments of computing.

1.1.3.     Future Internet: infrastructures,
technologies and services

The objective is to reinforce the
competitiveness of European industry in developing,
mastering and shaping the next generation Internet that will gradually replace
the current Web, fixed and mobile networks and service infrastructures, and
enable the interconnection of trillions of devices (IoT) across multiple
operators and domains that will change the way we communicate, access and use knowledge.
This includes R&I on
networks, software and services, cyber security, privacy and trust, wireless[22] communication and all optical
networks, immersive interactive multimedia and on the connected enterprise of
the future.

1.1.4.     Content technologies and
information management: ICT for digital content and creativity

The objective is to provide professionals
and citizens with new tools to create, exploit and preserve all forms of
digital content in any language and to model, analyse, and visualise vast
amounts of data, including linked data. This includes new technologies for
language, learning, interaction, digital preservation, content access and analytics;
intelligent information management systems based on advanced data mining,
machine learning, statistical analysis and visual computing technologies.

1.1.5.     Advanced interfaces and
robots: robotics and smart spaces

The objective is to reinforce European
scientific and industrial leadership in industrial and service robotics, cognitive
systems, advanced interfaces and smart spaces, and sentient machines, building
on increases in computing and networking performance and progress in the
ability to build systems that can learn, adapt and react.

1.1.6.     Micro- and nanoelectronics
and photonics

The objective is to take advantage of the
excellence of Europe in this key enabling technology and support the
competitiveness and market leadership of its industry. Activities will also
include research and innovation on design, advanced
processes, pilot lines for fabrication, related
production technologies and demonstration actions to validate technology
developments and innovative business models.

These six major activity lines are expected
to cover the full range of needs. These would include industrial
leadership in generic ICT-based solutions, products and services needed to tackle major societal challenges as well as application-driven ICT research and innovation agendas which will be
supported together with the relevant societal challenge.

Included under each of the six big activity
lines are also ICT-specific research infrastructures such as living labs
for large-scale experimentation and infrastructures for underlying
key enabling technologies and their integration in advanced products and
innovative smart systems, including equipment, tools, support
services, clean rooms and access to foundries for prototyping.

1.2.        Nanotechnologies

1.2.1.     Developing next generation
nanomaterials, nanodevices and nanosystems

Development and integration of knowledge at
the cross-roads of different scientific disciplines, aiming at fundamentally
new products enabling sustainable solutions in a wide range of sectors.

1.2.2.     Ensuring the safe
development and application of nanotechnologies

Advancing scientific knowledge of their
potential impact on health or on the environment for pro-active, science-based
governance of nanotechnologies, and providing validated scientific tools and
platforms for hazard, exposure and risk assessment and management along the
entire life cycle of nanomaterials and nanosystems.

1.2.3.     Developing the societal
dimension of nanotechnology

Addressing the human and physical
infrastructure needs of nanotechnology deployment and focussing on governance
of nanotechnology for societal benefit.

1.2.4.     Efficient synthesis and
manufacturing of nanomaterials, components and systems

Focusing on new flexible, scalable and
repeatable unit operations, smart integration of new and existing processes, as
well as up-scaling to achieve mass production of products and multi-purpose
plants that ensures the efficient transfer of knowledge into industrial
innovation.

1.2.5.     Developing
capacity-enhancing techniques, measuring methods and equipment

Focusing on the underpinning technologies,
supporting the development and market introduction of complex nanomaterials and
nanosystems, including characterising and manipulating matter at the
nano-scale, modelling, computational design and advanced engineering at the
atomic level.

1.3.        Advanced materials

1.3.1      Cross-cutting and enabling
materials technologies

Research on functional materials, multifunctional
materials such as self-repairing or biocompatible materials and structural
materials, for innovation in all industrial sectors particularly for high value
markets.

1.3.2.     Materials development and
transformation

Research and development to ensure
efficient and sustainable scale up to enable industrial manufacturing of future
products e.g. in the metal or chemical industries.

1.3.3.     Management of materials
components

Research and development for new and
innovative techniques and systems, joining, adhesion, separation, assembly,
self-assembly and disassembling, decomposition and deconstruction.

1.3.4.     Materials for a sustainable
industry

Developing new products and applications
and consumer behaviour that reduce energy demand and facilitate low-carbon
production, as well as process intensification, recycling, depollution and high
added-value materials from waste and remanufacture.

1.3.5.     Materials for creative
industries

Applying design and the development of
converging technologies to create new business opportunities, including the
preservation of Europe's materials with historical or cultural value.

1.3.6.     Metrology,
characterisation, standardisation and quality control

Promoting technologies such as
characterisation, non-destructive evaluation and predictive modelling of
performance for progress in materials science and engineering.

1.3.7.     Optimisation of the use of
materials

Research and development to investigate alternatives
to the use of materials and innovative business model approaches.

1.4.        Biotechnology

1.4.1.     Boosting cutting-edge
biotechnologies as future innovation drivers

The objective is to lay the foundations for
the European industry to stay at the front line of innovation, also in the
medium and long term. It encompasses the development of emerging tools such as synthetic
biology, bioinformatics, systems biology and exploiting the convergence with
other enabling technologies such as nanotechnology (e.g. bionanotechnology) and
ICT (e.g. bioelectronics). These and other cutting-edge fields deserve
appropriate measures in terms of research and development to facilitate
effective transfer and implementation into new applications (drug delivery
systems, biosensors, biochips, etc).

1.4.2.     Biotechnology-based
industrial processes

The objective is twofold: on the one hand,
enabling the European industry (e.g. chemical, health, mining, energy, pulp and
paper, textile, starch, food processing) to develop new products and processes
meeting industrial and societal demands; and competitive and enhanced
biotechnology-based alternatives to replace established ones; on the other
hand, harnessing the potential of biotechnology for detecting, monitoring,
preventing and removing pollution. It includes R&I on enzymatic and metabolic pathways, bio-processes
design, advanced fermentation, up- and down-stream
processing, gaining insight on the dynamics of microbial communities. It will also encompass the development of prototypes for
assessing the techno-economic feasibility of the developed products and
processes.

1.4.3.     Innovative and competitive
platform technologies

The objective is to develop platform
technologies (e.g. genomics, meta-genomics, proteomics, molecular tools)
triggering leadership and competitive advantage on a wide number of economic
sectors. It includes aspects, such as underpinning the development of bio-resources with optimised properties and applications
beyond conventional alternatives; enabling exploration, understanding and
exploitation in a sustainable manner of terrestrial and marine
biodiversity for novel applications; and sustaining
the development of biotechnology-based healthcare solutions (e.g. diagnostics,
biologicals, bio-medical devices).

1.5.        Advanced Manufacturing and
Processing

1.5.1.     Technologies for Factories
of the Future

Promoting sustainable, industrial growth by facilitating a strategic shift in Europe from
cost-based manufacturing to an approach based on the creation of high added value.
This requires addressing the challenge of producing more, while consuming less
material, using less energy and creating less waste and pollution. The focus
will be on the development and integration of the adaptive production systems
of the future, with particular emphasis on the needs of European SMEs, in order
to achieve advanced and sustainable manufacturing systems and processes.

1.5.2.     Technologies enabling
Energy-efficient buildings

Reducing energy consumption and CO2
emissions by the development and deployment of sustainable construction
technologies, implementation and replication of measures for an increased
uptake of energy-efficient systems and materials in new, renovated and
retrofitted buildings. Life-cycle considerations and the growing importance of
design-build-operate concepts will be key in addressing the challenge of a
transition to nearly zero energy buildings in Europe by 2020 and the
realisation of energy-efficient districts through the engagement with the wide
stakeholder community.

1.5.3.     Sustainable and low-carbon technologies
in energy-intensive process industries

Increasing the competitiveness of process industries,
such as chemical, pulp and paper, glass, or non-ferrous metals and steel by
drastically improving resource and energy efficiencies and reducing the
environmental impact of such industrial activities. Focus will be on the
development, and validation of enabling technologies for innovative substances,
materials and technological solutions for low-carbon products and less
energy-intensive processes and services along the value chain, as well as the
adoption of ultra-low carbon production technologies and techniques to achieve
specific GHG emission intensity reductions.

1.5.4.     New, sustainable business
models

Cross-sectoral cooperation in concepts and
methodologies for "knowledge-based", specialised production can boost
creativity and innovation with a focus on business models in customised
approaches that can adapt to the requirements of globalised value chains and networks,
changing markets, and emerging and future industries.

1.6.        Space

1.6.1.     Enable European
competitiveness, non-dependence and innovation in space activities

The objective is to maintain a globally
leading role in space by safeguarding and developing a competitive space
industry and research community and by fostering space-based innovation.

1.6.1.1.  Safeguard a competitive
space industry and research community

Europe is playing a leading role in space
research and in the development of space technologies, and has developed its
own space infrastructures (e.g. Galileo). In fact, European industry has
established itself as an exporter of first class satellites. Nevertheless,
important challenges to this position are the fragmented character of the
European markets and research institutions, competition from major space powers
benefitting from large domestic markets, and limited systematic investments in
space research and technology development and capacity building in Europe. The
development of a research-base by providing continuity in space research
programmes, for example by a sequence of smaller and more frequent in-space
demonstration projects. This will allow Europe to develop its industrial base
and space RTD community, thereby contributing to its non-dependence from
imports of critical technologies.

1.6.1.2.  Boost innovation between
space and non-space sectors

A number of challenges in space
technologies have parallels to terrestrial challenges, for example in the
fields of energy, telecommunications, natural resource exploration, robotics,
security, and health. These commonalities offer opportunities for early co-development,
in particular by SMEs, of technologies across space and non-space communities, potentially
resulting in breakthrough innovations more rapidly than achieved in spin-offs
at a later stage. Exploitation of existing European space infrastructure should
be stimulated by promoting development of innovative products and services based
on remote sensing and geo-positioning. Europe should furthermore reinforce the incipient
development of an entrepreneurial space sector by well targeted measures.

1.6.2.     Enabling advances in space
technologies

The objective is to ensure the capability
to access space and to operate space systems to the benefit of European society
in the next decades.

The ability to access
space and to maintain and operate European or international space systems in
Earth orbit and beyond, are vital to the future of European society. The necessary
capabilities require constant investments in a multitude of space technologies (e.g.
launchers, satellites, robotics, instruments and sensors), and in operational
concepts from idea to demonstration in space. Europe is currently one of the
three leading space powers, but compared to the level of investment in space R&D
in the United States of America (e.g. about 20 % of the total NASA budget), the
European level of investment in future space technologies is insufficient (less
than 10 % of total expenditure in space) and needs to be strengthened along the
entire chain:

(a)
fundamental technological research, often
relying heavily on key enabling technologies, with the potential of generating
breakthrough technologies with terrestrial applications;

(b)
improvement of existing technologies, e.g.
through miniaturisation, higher energy efficiency, and higher sensor
sensitivity;

(c)
demonstration and validation of new technologies
and concepts in the space and terrestrial analogue environments;

(d)
mission context, e.g. analysis of the space
environment, ground stations, protecting space systems from collision with
debris and effects of solar flares (Space Situational Awareness, SSA),
fostering innovative data and sample archiving infrastructure;

(e)
Advanced navigation and remote sensing
technologies, covering the research essential for future generations of Union
space systems (e.g. Galileo).

1.6.3.     Enabling exploitation of
space data

The objective is to ensure more extensive
utilisation of space data from existing and future European missions in the
scientific, public and commercial domain.

Space systems produce
information which often cannot be acquired in any other way. Despite world
class European missions, publication figures show that data from European
missions are not as likely to be used as data from US missions. A considerably
increased exploitation of data could be achieved if a concerted effort were
made to coordinate and organise the processing, validation and standardisation
of space data from European missions. Innovations in data acquisition and processing,
data fusion, and data dissemination, utilising also innovative ICT enabled forms
of collaboration, can ensure a higher return on investment of space
infrastructure. Calibration and validation of space
data (for individual instruments, between instruments and missions, and with
respect to in-situ objects) are key to efficient use of space data in all
domains, but have been hampered by the lack of Union-level bodies or institutes
mandated to ensure the standardisation of space-derived data and reference
frames. Data access and exploitation of space
missions is a matter that requires global coordination. For Earth observation data, harmonised approaches and best
practices are partly achieved in coordination with the intergovernmental
organization Group on Earth Observation, aiming to sustain a Global Earth
Observation System of Systems, in which the Union participates.

1.6.4.     Enabling European research
in support of international space partnerships

The objective is to support the European research
and innovation contribution to long term international space partnerships.

Although space
information provides great local benefits, space undertakings have a
fundamentally global character. This is particularly clear for the cosmic
threat to Earth and space systems. The loss of satellites due to space weather
and space debris is estimated to be in the order of EUR 100 million per annum.
Equally global are activities such as the International Space Station (ISS),
which is built and operated by Europe, the United States, Canada, Japan and
Russia, and robotic space science and exploration activities. The development of cutting edge space technology is increasingly
taking place within such international frameworks, making access to such
international projects an important success factor for European researchers and
industry. The Union contribution to such global space
endeavours needs to be defined in long-term strategic roadmaps (10 years and
more), aligning with the Union's space policy priorities, and in coordination
with internal European partners, such ESA; with international partners, such as
COSPAR, UNOOSA; and with the space agencies of space-faring nations such as
NASA and ROSCOSMOS.

1.6.5.     Specific implementation
aspects

The implementation priorities of space
research and innovation under Horizon 2020 are in line with the Union's space
policy priorities as defined by the Space Council and the Communication Towards
a space strategy for the European Union that benefits its citizens[23]. The implementation will be
developed in consultation with stakeholders from European space industry, SMEs,
academia, and technology institutes, represented by the Space Advisory Group
and important partners such as the European Space Agency and national space
agencies. As regards the participation in international undertakings, the
research and innovation agenda will be defined in collaboration with
international partners (e.g. NASA, ROSCOSMOS, JAXA).

2.           Access to risk finance

Horizon 2020 will set
up two facilities (the 'Equity facility' and the 'Debt facility'), composed of
various windows. The Equity facility and the SME window of the Debt facility
will be implemented as part of two EU Financial Instruments that provide equity
and debt to support SMEs' R&I and growth.

The Equity facility and the Debt facility
may, where appropriate, allow pooling of financial resources with Member States
willing to contribute part of the Structural Funds allocated to them, in
accordance with Article 31(1)(a) of the Structural Funds Council Regulation.

Instead of providing loans, guarantees or equity,
etc, directly to final beneficiaries, the Commission will delegate financial
institutions to provide support via, in particular, risk-sharing, guarantee
schemes and equity and quasi-equity investments.

2.1.        Debt facility

The Debt facility will provide loans to
single beneficiaries for investment in R&I; guarantees to financial
intermediaries making loans to beneficiaries; combinations of loans and
guarantees; and guarantees and/or counter-guarantees for national or regional
debt-financing schemes. The Debt facility will undertake maturity enhancement
activities, and it will support the dedicated SME Instrument (see Part II,
section '3. Innovation in SMEs' of this Annex). Provisions from the debt facility
may be combined, with the possible addition of grants (including lump sums),
with provisions from the equity financial instrument in one or more integrated
schemes. Soft loans and convertible loans may also be possible.

As well as providing loans and guarantees on a market-driven, first-come,
first-served basis, the debt facility will target, under a series of
compartments, particular policies and sectors. Ring-fenced budgetary
contributions for this purpose may come from:

(a)
Other parts of Horizon 2020, notably Part III
'Societal challenges';

(b)
other frameworks, programmes and budget lines in
the Union budget;

(c)
particular regions and Member States that wish
to contribute with resources available from the Cohesion
Policy funds;

(d)
specific entities (such as Eureka or Joint
Technology Initiatives) or initiatives.

Such budgetary contributions may be made or
topped up at any time during the course of Horizon 2020.

Risk-sharing and other parameters may vary
within policy or sector compartments, provided their values or states comply
with the common rules for debt instruments. Furthermore, compartments may have
specific communications strategies within the overall promotional campaign for
the Debt facility. In addition, specialist intermediaries at national level may
be used if specific expertise is needed to assess prospective loans in the
domain of a particular compartment.

The SME window under the Debt facility
shall target R&I-driven SMEs and small mid-caps with loan amounts exceeding
EUR 150 000, thus complementing finance to SMEs by the Loan Guarantee Facility
under the Programme for the Competitiveness of Enterprises and SMEs.

The leverage of the
Debt facility — defined as the total funding (i.e. Union funding plus
contribution from other financial institutions) divided by the Union financial
contribution — is expected to range from an average 1.5 to 6.5, depending on
the type of operations involved (level of risk, target beneficiaries, and the
particular debt financial instrument facility concerned). The multiplier effect
— defined as the total of investments made by supported beneficiaries divided
by the Union financial contribution — is expected to be 5 to 20, again
depending on the type of operations involved.

2.2.        Equity facility

The Equity facility will focus on
early-stage venture capital funds providing venture capital and/or mezzanine
capital to individual portfolio enterprises. These enterprises may, in
addition, seek debt financing from financial intermediaries implementing the
Debt facility.

The facility will also
have the possibility to make expansion and growth-stage
investments in conjunction with the Equity Facility for Growth (EFG) under the Programme for the Competitiveness of Enterprises and SMEs(this includes investments in funds-of-funds with
a broad investor base and includes private institutional and strategic
investors as well as national public and semi-public financial institutions). In
the latter case, the investment from the Equity Facility of Horizon 2020 shall
not exceed 20% of the total EU investment except in cases of multi-stage funds,
where funding from EFG and the equity facility for RDI will be provided on a
pro rata basis, based on the funds' investment policy. Like the EFG, the Equity
Facility shall avoid buy-out or replacement capital intended for the
dismantling of an acquired enterprise. The Commission may decide to amend the
20% threshold in light of changing market conditions.

Investment parameters
will be set in such a way that specific policy objectives, including the targeting
of particular groups of potential beneficiaries, can be achieved while still
preserving the market-oriented, demand-driven approach of this instrument.

The Equity facility may
be supported by budgetary contributions from other parts of Horizon 2020; other
frameworks, programmes and budget lines in the Union budget; particular regions
and Member States; and specific entities or initiatives.

The leverage of the
Equity facility — defined as the total funding (i.e., Union funding plus
contribution from other financial institutions) divided by the Union financial
contribution — is expected to be around 6, depending on market specificities,
with an expected multiplier effect — defined as the total of investments made
by supported beneficiaries divided by the Union financial contribution — of, on
average, 18.

2.3.        Specific implementation
aspects

The implementation of
the two facilities will be delegated to the European Investment Bank Group
(EIB, EIF) and/or to other financial institutions that may be entrusted with
the implementation of financial instruments in compliance with the Financial
Regulation. Their design and implementation will be aligned with the general
provisions for financial instruments set out in the Financial Regulation and
with more specific operational requirements to be set out in Commission
guidance.

Their elements may be
combined, with the possible addition of grants (including lump sums), in one or
more integrated schemes supporting particular categories of beneficiary or
special-purpose project, such as SMEs and mid-caps with growth potential, or
the large-scale demonstration of innovative technologies.

Their implementation
will be supported by a set of accompanying measures. These may include, amongst other measures, technical assistance for financial
intermediaries involved in assessing the eligibility of loan applications or
the value of knowledge assets; investment-readiness schemes covering
incubating, coaching and mentoring SMEs and fostering their interaction with
potential investors; measures to raise the awareness of venture capital firms
and business angels about the growth potential of innovative SMEs involved in Union
funding programmes; schemes to attract private investors to support the growth
of innovative SMEs and mid-caps; schemes for encouraging philanthropic
foundations and individuals to support R&I; and schemes to foster corporate
venturing and encourage the activities of family offices and business angels.

Complementarity will be ensured with the
facilities of the Programme for the Competitiveness of
Enterprises and SMEs.

3.           Innovation in SMEs

3.1.        Mainstreaming SME support

SMEs will be supported across Horizon 2020.
For this purpose a dedicated SME instrument is targeted at all types of
innovative SMEs showing a strong ambition to develop, grow and
internationalise. It will be provided for all types of innovation, including
non-technological and service innovations. The objective is to help filling the
gap in funding for early stage high risk research and innovation, stimulate
break-through innovations and increase private-sector commercialisation of
research results.

All of the societal challenges and the enabling
and industrial technologies shall apply the dedicated SME instrument and
allocate an amount to it.

Only SMEs will be allowed to apply for
funding and support. They can form collaborations according to their needs,
including for subcontracting research and development work. Projects must be of
clear interest and potential benefit to SMEs and have a distinct European
dimension.

The SME instrument will cover all fields of
science, technology and innovation in a bottom-up approach within a given
societal challenge or enabling technology so as to leave sufficient room for all
kinds of promising ideas, notably cross-sector and inter-disciplinary projects,
to be funded.

The SME instrument will provide simplified
and staged support. Its three phases will cover the whole innovation cycle.
Transition from one phase to the next will be seamless provided the SME project
has proven to be worth further funding during a previous phase. At the same
time each phase will be open to all SMEs:

–
Phase 1: Concept and feasibility assessment:

SMEs will receive funding to explore the
scientific or technical feasibility and the commercial potential of a new idea (proof
of concept) in order to develop an innovation project. A positive outcome of
this assessment will allow for funding under the following phase(s).

–
Phase 2: R&D, demonstration, market
replication:

Research and development will be supported with
a particular focus on demonstration activities (testing, prototype, scale-up
studies, design, piloting innovative processes, products and services, performance
verification etc.) and market replication.

–
Phase 3: Commercialisation:

This phase will not provide direct funding
other than support activities, but aims to facilitate access to private capital
and innovation enabling environments. Links to the financial instruments (see
Part II, section 2 'Access to Risk Finance of this Annex) are foreseen, for
example by giving SMEs that have successfully completed phases 1 and/or 2
priority within a ring-fenced volume of financial resources. SMEs will also
benefit from support measures like networking, training, coaching and
advice. In addition this part may connect to measures promoting pre-commercial
procurement and procurement of innovative solutions.

Uniform promotion, implementation and monitoring
of the SME instrument across Horizon 2020 will ensure easy access for SMEs.
Relying on existing SME support networks a mentoring scheme for the beneficiary
SMEs shall be established to accelerate impact from the support provided.

A dedicated body of stakeholders and
experts in SME research and innovation will be set up with view to promoting
and accompanying the specific SME measures of Horizon 2020.

3.2.        Specific support

3.2.1.     Support for research
intensive SMEs

A specific action will
promote market-oriented innovation of R&D
performing SMEs. It targets research intensive SMEs in high-technology sectors
that also need to demonstrate their capability to commercially exploit the
project results.

The action will cover the entire field of
science and technology with a bottom-up approach to fit the needs of R&D
performing SMEs.

The action will be implemented by an
Article 185 TFEU initiative building on the Eurostars Joint Programme
and reorienting it along the lines stated in its interim evaluation.

3.2.2.     Enhancing the innovation
capacity of SMEs

Activities assisting the implementation and
complementing the SME specific measures across Horizon 2020 will be supported,
notably to enhance the innovation capacity of SMEs. Activities may include
awareness raising, information and dissemination, training and mobility
activities, networking and exchange of best practices, developing high quality
innovation support mechanisms and services with strong Union added value for
SMEs (e.g. intellectual property and innovation
management, knowledge transfer, innovative use of ICT and e-skills in SMEs), as well as assisting SMEs to connect to research and innovation
partners across the Union, allowing them to spin in technology and develop
their innovation capacity. Intermediary
organisations representing groups of innovative SMEs shall be invited to
conduct cross-sectoral and cross-regional innovation activities with SMEs
having mutually reinforcing competences, in order to develop new industrial
value chains.

Synergies with Union cohesion policy will
be sought in the context of national and regional innovation strategies for
smart specialisation.

A reinforced link with the Enterprise
Europe Network (under the Programme for the
Competitiveness of Enterprises and SMEs) is envisaged.
The support could range from improved information and advisory services through
mentoring, coaching and partner search activities for SMEs wishing to develop
cross-border innovation projects, to providing innovation support services.
This will consolidate the 'one stop shop' approach of the Enterprise Europe
Network to supporting SMEs, together with a strong regional and local presence
of the network.

3.2.3.     Supporting market-driven
innovation

This will support market-driven innovation
in view of enhancing the innovation capacity of firms
by improving the framework conditions for innovation as
well as tackling the specific barriers preventing the growth of innovative firms, in particular SMEs and enterprises of
intermediate size with potential for fast growth. Specialised
innovation support (on e.g. IP exploitation, networks
of procurers, support to technology transfer offices, strategic design) and
reviews of public policies in relation to innovation will
be supported.

Part III

Societal Challenges

1.           Health, demographic change and wellbeing

Effective health promotion, supported by a
robust evidence base, prevents disease, improves wellbeing and is cost
effective. Health promotion and disease prevention also depend on an
understanding of the determinants of health, on effective preventive tools,
such as vaccines, on effective health and disease surveillance and
preparedness, and on effective screening programmes.

Successful efforts to prevent, manage,
treat and cure disease, disability and reduced functionality are underpinned by
the fundamental understanding of their causes, processes and impacts, as well
as factors underlying good health and wellbeing. Effective sharing of data and
the linkage of these data with real-world large scale cohort studies is also
essential, as is the translation of research findings into the clinic, in particular
through the conduct of clinical trials.

An increasing disease and disability burden
in the context of an aging population places further demands on health and care
sectors. If effective health and care is to be maintained for all ages, efforts
are required to improve decision making in prevention and treatment provision,
to identify and support the dissemination of best practice in the healthcare
sector, and to support integrated care and the uptake of technological,
organisational and social innovations empowering older persons in particular to
remain active and independent. Doing so will contribute to increasing, and
lengthening the duration of their physical, social, and mental well-being.

All of these activities will be undertaken
in such a way as to provide support throughout the research and innovation
cycle, strengthening the competitiveness of the European based industries and
development of new market opportunities.

Specific activities are described below.

1.1.        Understanding the
determinants of health, improving health promotion and disease prevention

A better understanding of the determinants
of health is required in order to provide evidence for effective health
promotion and disease prevention, and will also allow the development of comprehensive
health and wellbeing indicators in the Union. Environmental, behavioural
(including life-style), socio-economic and genetic factors, in their broadest
senses will be studied. Approaches will include the long term study of cohorts
and their linkage with data derived from "-omics" research, and other
methods.

In particular, a better understanding of
the environment as a determinant of health will require integrated molecular
biological, epidemiological and toxicological approaches to investigate health-environment
relationships, including studies of modes of action of chemicals, combined
exposures to pollution and other environmental and climate related stressors,
integrated toxicological testing as well as alternatives to animal testing.
Innovative approaches to exposure assessment are needed using new-generation
biomarkers based on 'omics' and epigenetics, human biomonitoring, personal
exposure assessments and modelling to understand combined, cumulative and emerging
exposures, integrating socio-economic and behavioural factors. Improved links
with environmental data using advanced information systems will be supported.

In this way, existing and planned policies
and programmes can be assessed and policy support provided. Similarly, improved
behavioural interventions, prevention and education programmes can be developed
including those pertaining to health literacy in nutrition, vaccination and other
primary care interventions.

1.2.        Developing effective
screening programmes and improving the assessment of disease susceptibility

The development of screening programmes
depends on the identification of early biomarkers of risk and of disease onset,
and their deployment depends on the testing and validation of screening methods
and programmes. Identifying individuals and populations at high-risk of disease
will allow personalised, stratified and collective strategies for efficacious
and cost effective disease prevention to be developed.

1.3.        Improving surveillance and
preparedness

Human populations are under threat from new
and emerging infections (including those resulting from climate change), from
drug resistance to existing pathogens and from other direct and indirect
consequences of climate change. Improved methods for surveillance, early
warning networks, health service organisation and preparedness campaigns are
needed for the modelling of epidemics, for effective pandemic response, for
responses to non infectious disease consequences of climate change, as are
efforts to maintain and enhance capabilities to combat drug resistant
infectious disease.

1.4.        Understanding disease

There is a need for an improved
understanding of health and disease, in people of all ages, so that new and
better prevention measures, diagnosis and treatments can be developed. Interdisciplinary,
translational research on the patho-physiology of disease is essential to
improve the understanding of all aspects of disease processes, including a
re-classification of normal variation and disease based on molecular data, and
to validate and use research results in clinical applications.

Underpinning research will encompass and
encourage development and use of new tools and approaches for the generation of
biomedical data and include "-omics", high throughput and systems
medicine approaches. These activities will demand close linkage between
fundamental and clinical research and with long term cohort studies (and the
corresponding research domains) as described above. Close links with research
and medical infrastructures (databases, bio-banks etc.) will also be required,
for standardisation, storage, sharing and access to data, which are all
essential for maximising data utility and for stimulating more innovative and
effective ways of analysing and combining datasets.

1.5.        Developing better
preventive vaccines

There is a need for more effective
preventive vaccines (or alternative preventive interventions) and
evidence-based vaccination schemes for an expanded range of diseases. This
relies on a better understanding of disease and disease processes and their
consequent epidemics, and that clinical trials and associated studies are
undertaken.

1.6.        Improving diagnosis

An improved understanding of health,
disease and disease processes at all ages is needed to develop new and more
effective diagnostics. Innovative and existing technologies will be developed
with the goal of significantly improving disease outcomes through earlier, more
accurate diagnosis and by allowing for more patient-adapted treatment.

1.7.        Using in-silico medicine
for improving disease management and prediction

Computer simulation using patient specific
data and building on systems medicine approaches and physiological modelling
can be used to predict susceptibility to disease, disease evolution and the
likely success of medical treatments. Model based simulation can be used to
support clinical trials, predictability of treatment response, and the
personalisation and optimisation of treatment.

1.8.        Treating disease

There is a need to support the improvement
of cross-cutting support technologies for drugs, vaccines and other therapeutic
approaches, including transplantation, gene and cell therapy; to increase
success in the drug and vaccine development process (including alternative
methods to replace classical safety and effectiveness testing e.g. the
development of new methods); to develop regenerative medicine approaches,
including approaches based on stem cells; to develop improved medical and
assistive devices and systems; to maintain and enhance our ability to combat communicable,
rare, major and chronic diseases and undertake medical interventions that
depend on the availability of effective antimicrobial drugs; and to develop
comprehensive approaches to treat co-morbidities at all ages and avoid
poly-pharmacy. These improvements will facilitate the development of new, more
efficient, effective and sustainable treatments for disease and for the
management of disability.

1.9.        Transferring knowledge to
clinical practice and scalable innovation actions

Clinical trials are the means to transfer
biomedical knowledge to application in patients and support for these will be
provided, as well as for the improvement of their practice. Examples include
the development of better methodologies to allow trials to focus on relevant population
groups, including those suffering from other concomitant diseases and/or
already undergoing treatment, the determination of comparative effectiveness of
interventions and solutions, as well as enhancing the use of databases and
electronic health records as data sources for trials and knowledge transfer.
Similarly, support for the transfer of other types of interventions such as
those related to independent living into real world environments will be
provided.

1.10.      Better use of health data

The integration of infrastructures and
information structures and sources (including those derived from cohort
studies, protocols, data collections, indicators, etc.) as well as the
standardisation, interoperability, storage, sharing of and access to data, will
be supported to enable such data to be properly exploited. Attention should be
given to data processing, knowledge management, modelling and visualisation.

1.11.      Improving scientific tools
and methods to support policy making and regulatory needs

There is a need to support the development
of scientific tools, methods and statistics for rapid, accurate and predictive
assessment of the safety, efficacy and quality of health technologies including
new drugs, biologics, advanced therapies and medical devices. This is
particularly relevant for new developments in domains including those
concerning vaccines, cell/tissue and gene therapies, organs and
transplantation, specialist manufacturing, bio banks, new medical devices,
diagnostic/treatment procedures, genetic testing, interoperability and
e-health, including privacy aspects. Similarly, support for improved
risk assessment methodologies, testing approaches and strategies relating to
environment and health are required. There is also a need to support the
development of relevant methods for assisting the assessment of ethical aspects
of the above domains.

1.12.      Active ageing, independent
and assisted living

Multidisciplinary advanced and applied
research and innovation with behavioural, gerontological, digital and other
sciences is needed for cost effective user-friendly solutions for active,
independent and assisted daily living (in the home, the workplace, etc.) for
the ageing population and people with disabilities. This applies in a variety
of settings and for technologies and systems and services enhancing quality of
life and human functionality including mobility, smart personalised assistive
technologies, service and social robotics, and ambient assistive environments.
Research and innovation pilots to assess implementation and wide uptake of
solutions will be supported.

1.13.      Individual empowerment for
self-management of health

Empowering individuals to improve and
manage their health throughout life will result in cost savings to healthcare
systems by enabling the management of chronic disease outside institutions and
improve health outcomes. This requires research into behavioural and social
models, social attitudes and aspirations in relation to personalised health
technologies, mobile and/or portable tools, new diagnostics and personalised
services which promote a healthy lifestyle, wellbeing, self-care, improved
citizen/healthcare professional interaction, personalised programmes for
disease and disability management, as well as support for knowledge infrastructures.

1.14.      Promoting integrated care

Supporting the management of chronic
disease outside institutions also depends on improved cooperation between the
providers of health and social or informal care. Research and innovative
applications will be supported for decision making based on distributed
information, and for providing evidence for large scale deployments and market
exploitation of novel solutions, including interoperable tele-health and
tele-care services. Research and innovation to improve the organisation of
long-term care delivery will also be supported.

1.15.      Optimising the efficiency
and effectiveness of healthcare systems and reducing inequalities through
evidence based decision making and dissemination of best practice, and
innovative technologies and approaches.

There is a need to support the development
of health technology assessment and health economics, as well as the of
gathering evidence and dissemination of best practice and innovative
technologies and approaches in the healthcare sector, including ICT and
e-health applications. Comparative analyses of the reform of public health
systems in Europe and in third countries and assessments of their mid to
long-term economic and social impacts will be supported. Analyses of future health
workforce needs both in terms of numbers and required skills in relation to new
patterns of care will be supported. Research on the evolution of health
inequalities, of their interplay with other economic and social inequalities
and on the effectiveness of policies aiming to reduce them in Europe and beyond
will be supported. Finally, there is a need to support the assessment of
patient safety solutions and quality assurance systems, including the role of
patients on safety and quality of care.

1.16.      Specific implementation
aspects

Support provided will cover the full
spectrum of activities from knowledge and technology transfer to large scale
demonstration actions, leading to scalable solutions for Europe and beyond.

2.           Food security, sustainable agriculture,
marine and maritime research and the bio-economy

2.1.        Sustainable agriculture
and forestry

Appropriate knowledge, tools, services and
innovations are necessary to support more productive, resource-efficient and
resilient agriculture and forestry systems that supply sufficient food, feed,
biomass and other raw-materials and deliver ecosystems services while at the
same time supporting the development of thriving rural livelihoods. Research
and innovation will provide options for integrating agronomic and environmental
goals into sustainable production, thus: increasing
productivity and resource efficiency of agriculture; reducing agricultural greenhouse gases (GHGs) emissions; reducing
leaching of nutrients from cultivated lands into terrestrial and aquatic
environments; decreasing dependence from international
plant derived protein imports to Europe; increasing the level of biodiversity
in primary production systems.

2.1.1.     Increasing production
efficiency and coping with climate change, while ensuring sustainability and
resilience

Activities will enhance productivity as
well as the adaptive capacity of plants, animals and production systems to cope
with rapidly changing environmental/climatic conditions and increasingly scarce
natural resources. The resulting innovations will help to move towards a low
energy, low emission and low waste economy, along the entire food and feed supply
chain. In addition to contributing to food security, new opportunities will be
created for the use of biomass and by-products from agriculture and forestry
for a wide range of non-food applications.

Multi-disciplinary approaches will be
sought to improve the performance of plants, animals, micro-organisms, while
ensuring efficient resource use (water, nutrients, energy) and the ecological
integrity of rural areas. Emphasis will be placed on integrated and diverse
production systems and agronomic practices, including the use of precision
technologies and ecological intensification approaches to benefit both
conventional and organic agriculture. Genetic improvement of plants and animals
for adaptation and productivity traits will call for all appropriated
conventional and modern breeding approaches and for a better use of genetic
resources. Due attention will be given to on-farm soil management for
increasing soil fertility as a basis for crop productivity. Animal and plant
health will be promoted and integrated disease/pest control measures will be
further developed. Strategies for the eradication of animal diseases including zoonoses
will be tackled along with research on antimicrobial resistance. Studying the
effects of practices on animal welfare will help meet societal concerns. The
above listed areas will be underpinned by more fundamental research to address relevant
biological questions as well as to support the development and implementation
of Union policies.

2.1.2.     Providing ecosystem
services and public goods

Agriculture and forestry are unique systems
delivering commercial products but also wider societal public goods (including
cultural and recreational value) and important ecological services such as
functional and in-situ biodiversity, pollination, water regulation, landscape, erosion reduction and carbon
sequestration / GHG mitigation. Research activities will support the provisions
of these public goods and services, through the delivery of management
solutions, decision-support tools and the assessment of their non-market value.
Specific issues to be dealt with include the identification of farming/forest
systems and landscape patterns likely to achieve these goals. Shifts in theactive management of agricultural
systems - including the use of technologies and change of practices - will
increase GHG mitigation and the adaptive capacity of the agriculture sector to
the adverse effects of climate change.

2.1.3.     Empowerment of rural areas,
support to policies and rural innovation

Development opportunities for rural
communities will be mobilised by strengthening their capacity for primary
production and delivery of eco-systems services as well as by opening avenues
for the production of new and diversified products (food, feed, materials,
energy), which meet the increasing demand for low-carbon short-chain delivery
systems. Socio-economic research along with the development of new concepts and
institutional innovations is needed to ensure cohesion of rural areas and
prevent economic and social marginalisation, foster diversification of economic
activities (including service sector), ensure appropriate relations between rural
and urban areas, as well as facilitate knowledge exchange, demonstration,
innovation and dissemination and foster participatory resource management. Also,
there is a need to look at ways in which public goods in rural areas can be
converted into local/regional socio-economic benefits. Innovation
needs defined at regional and local levels will be complemented by
cross-sectoral research actions at inter-regional and European levels. By
providing the necessary analytical tools, indicators,
models and forward looking activities,
research projects will support policy makers and other actors in the
implementation, monitoring and assessment of relevant strategies, policies and
legislation, not only for rural areas but for the whole bio-economy. Tools and
data are also required to allow for proper assessment of potential trade-offs
between various types of resource use (land, water and other inputs) and
bio-economy products. Socio-economic and comparative assessment of
farming/forestry systems and their sustainability performance will be
addressed.

2.2.        Sustainable and
competitive agri-food sector for a safe and healthy diet

Consumer needs for safe, healthy and
affordable food have to be addressed, while considering the impacts of food
consumption behaviour and food and feed production on human health and the
total ecosystem. Food and feed security and safety, the competitiveness of the European
agri-food industry and the sustainability of food production and supply will be
addressed, covering the whole food chain and related services, whether
conventional or organic, from primary production to consumption. This approach
will contribute to (a) achieving food safety and security for all Europeans and
eradication of hunger in the world (b) decreasing the burden of food- and
diet-related diseases by promoting the shift towards healthy and sustainable
diets, via consumer education and innovations in the food industry (c) reducing
water and energy consumption in food processing, transport and distribution and
(d) reducing food waste by 50 % by 2030.

2.2.1.     Informed consumer choices

Consumer preferences, attitudes, needs, behaviour,
lifestyle and edu­ca­tion will be addressed, and communication between
consumers and the food chain research community and its op­erators will be
enhanced in order to improve informed choice, sustainable con­sump­tion and their
impacts on production, inclusive growth and quality of life, especially of vul­ner­able
groups. Social innovation will re­spond to societal chal­lenges, and in­no­va­tive
models and method­ol­o­gies in con­su­mer science will deliver comparable data
and lay the ground for responses to Union policy needs.

2.2.2.     Healthy and safe foods and
diets for all

Nutritional needs and the impact of food on
phy­si­o­logical functions, physical and mental performance will be addressed
as well as the links between diet, ageing, chronic dis­eases and disorders and
dietary patterns. Dietary solutions and in­no­vations leading to improvements
in health and well-being will be identified. Chemical and microbial food and
feed contamination, risks and exposures will be as­sessed, monitored,
controlled and traced throughout the food and drinking water supply chains from
pro­duction and storage to processing, packaging, distribution, catering, and
pre­paration at home. Food safety inno­vations, improved risk communication
tools and improved food safety standards will lead to en­hanced consumer trust
and protection in Europe. Globally improved food safety standards will also
help to strengthen the competitiveness of the European food industry.

2.2.3.     A sustainable and
competitive agri-food industry

The needs for the food and feed industry to
cope with social, environmental, climate and economic change from local to
global will be addressed at all stages of the food and feed production chain,
including food design, processing, packaging, process control, waste reduction,
by-product valorisation and the safe use or disposal of animal by-products.
Innovative and sustainable resource-efficient processes and diversified, safe,
affordable and high quality products will be generated. This will strengthen
the innovation potential of the European food supply chain, enhance its competitiveness,
create economic growth and employ­ment and allow the European food industry to
adapt to changes. Other aspects to address are trace­ability, logistics and
services, socio-economic factors, the resilience of the food chain against en­vironmental
and climate risks, and the limitation of negative impacts of food chain activities
and of changing diets and production systems on the environment.

2.3.        Unlocking the potential of
aquatic living resources

One of the main features of living aquatic resources is
that they are renewable and their sustainable exploitation relies on in depth
understanding and a high degree of quality and productivity of the aquatic
ecosystems. The overall objective is to sustainably exploit aquatic living
resources to maximise social and economic benefits/returns from Europe's oceans
and seas. This includes the need to optimise the sustainable contribution of
fisheries and aquaculture to food security in the context of the global economy
and reduce the heavy Union's dependence on seafood imports (approximately 60 % of total European sea food consumption depends on
import and the Union is the world's largest importer of fisheries products), and to boost marine biotechnologies to fuel
"blue" growth. In line with current policy
frameworks, research activities will underpin the ecosystem approach to the
management and exploitation of natural resources, and the 'greening' of the
sectors involved.

2.3.1.     Developing sustainable and
environmentally-friendly fisheries

The new Common Fisheries Policy, the Marine
Strategy Framework Directive and the Union's Biodiversity Strategy call for
European fisheries to be more sustainable, competitive, and
environmentally-friendly. The move towards an ecosystem approach to fisheries
management will require an in depth understanding of marine ecosystems. New insights, tools and models will be
developed to improve understanding of what makes marine ecosystems healthy and
productive and to assess, evaluate and mitigate the impact of fisheries on
marine ecosystems (including deep sea). New harvest strategies will be
developed which provide services to society while maintaining healthy marine
ecosystems. The socio-economic effects of management options will be measured.
The effects and adaptation to environmental changes, including climate change,
will also be investigated along with new management tools to deal with risk and
uncertainty. Activities will support research on the biology, genetic and
dynamics of fish populations, on the role of key species in the ecosystems, on
fishing activities and their monitoring, on fishing sector behaviours and
adaptation to new markets e.g. eco-labelling on fishing industry involvement in
decision making. The shared use of maritime space with
other activities, in particular in the coastal zone, and its socio-economic impact will also be addressed.

2.3.2.     Developing competitive
European aquaculture

Aquaculture has a large potential for the
development of healthy safe and competitive products
tailored to consumer needs and preferences as well as for environmental
services (bioremediation, land and water management, etc) and energy production
but it needs to be fully realised in Europe. Knowledge
and technologies will be strengthened in all aspects of
domestication of established species and
diversification for new species while taking into
account the interactions between aquaculture and the aquatic ecosystems, and the
effects of climate change and how the sector can adapt to them. Innovation will
also be promoted for sustainable production systems in inland, on the coastal
zone and offshore. Emphasis
will also be given to understanding the social and economic dimensions of the
sector to underpin cost and energy efficient production matching with the
market and consumer demands, while ensuring competitiveness and attractive
prospects for investors and producers.

2.3.3.     Boosting marine innovation
through biotechnology

More than 90 % of the marine biodiversity
remains unexplored, offering a huge potential for discovery of new species and
applications in the field of marine biotechnologies, which is foreseen to
generate a 10 % annual growth for this sector. Support will be given to further
explore and exploit the large potential offered by marine biodiversity and
aquatic biomass to bring new innovative processes, products and services on the
markets with potential applications in sectors including chemical and material
industries, pharmaceutical, fisheries and aquaculture, energy supply and
cosmetic.

2.4.        Sustainable and competitive
bio-based industries

The overall objective is to accelerate the
conversion of fossil-based European industries to low carbon, resource
efficient and sustainable ones. Research and innovation will provide the means
to reduce the Union's
dependency on fossil fuels and contribute to meeting its energy and climate
change policy targets for 2020 (10 % of transport fuels from renewables and a 20
% reduction of greenhouse gases emissions). Estimates conclude that a shift to
biological raw materials and biological processing methods could save up to 2.5
billion tons of CO2 equivalent per year by 2030, increasing markets
for bio-based raw materials and new consumer products several-fold. Reaping these
potentials requires building a broad knowledge base and developing relevant
(bio)technologies, focussing mainly on three essential elements: a) transforming current fossil-based processes by resource and
energy efficient biotechnology based ones; b) establishing reliable and appropriate supply chains of biomass and
waste streams and a wide network of bio-refineries throughout Europe; and c) supporting
market development for bio-based products and processes. Synergies will be sought with the 'Leadership
in Enabling and Industrial Technologies' specific objective.

2.4.1.     Fostering the bio-economy
for bio-based industries

Major progress towards low carbon, resource
efficient and sustainable industries will be supported through discovery and
exploitation of terrestrial and aquatic biological resources, while minimising
adverse environmental impacts. Potential trade-offs between the various uses of
biomass should be examined. The development of bio-based products and
biologically active compounds for industries and consumers with novel
qualities, functionalities and improved sustainability will be targeted. The
economic value of renewable resources, bio-waste and by-products will be
maximised through new and resource efficient processes.

2.4.2.     Developing integrated
biorefineries

Activities will be supported to boost
sustainable bioproducts, intermediates and bioenergy/biofuels, predominantly
focussing on a cascade approach, prioritising the generation of high added-value
products. Technologies and strategies will be developed to assure the raw
material supply. Enhancing the range of types of biomass for use in second and
third generation biorefineries, including forestry, biowaste and industrial
by-products, will help avoid food/fuel conflicts and support economic
development of rural and coastal areas in the Union.

2.4.3.     Supporting market
development for bio-based products and processes

Demand-side measures will open new markets
for biotechnology innovation. Standardisation at Union and international levels
is needed for, amongst others, determination of bio-based content, product
functionalities and biodegradability. Methodologies and approaches to
life-cycle analysis need to be further developed and continuously adapted to
scientific and industrial advances. Research activities supporting product and
process standardisation and regulatory activities in the field of biotechnology
are considered essential for supporting the creation of new markets and for
realising trade opportunities.

2.5.        Specific implementation
actions

Beyond the general sources of external
advice, specific consultations will be sought from the Standing Committee on
Agricultural Research (SCAR) on a range of issues, including on strategic
aspects through its foresight activity and on the coordination of agricultural
research between national and Union levels. Appropriate links will be
established with the actions of the European Innovation Partnership
'Agricultural Productivity and Sustainability'.

The impact and dissemination of research
results will be actively supported through specific actions on communication,
knowledge exchange and the involvement of various actors all along the
projects. Implementation will combine a wide range of activities, including
substantial demonstration and pilot activities. Easy and open access to
research results and best practices will be fostered, where appropriate via
databases.

The specific support to SMEs will allow for
an increased participation of farms, fishermen and other types of
micro-enterprises in research and demonstration activities. The specific needs
of the primary production sector for innovation support services and outreach
structures will be taken into account. Implementation will combine a wide range
of activities, including knowledge exchange actions where the involvement of
farmers and intermediaries will be actively ensured in view of summarising the
research needs of end-users. Easy and open access to research results and best
practices will be fostered.

Support to standard setting will be used to
help accelerate market deployment for novel bio-based goods and services.

Consideration may be given to support to
the Joint Programming Initiatives (JPIs) including 'Agriculture, Food Security
and Climate Change'; 'A Healthy Diet for a Healthy Life'; and 'Healthy and
Productive Seas and Oceans' and to implementing possible public-private
partnerships in the field of bio-based industries.

Synergies with and further deployment by
other Union funds related to this societal challenge, such as the Rural
Development Funds and Fisheries Funds will be sought.

Forward looking activities will be
undertaken across the sectors of the bio-economy, including the development of
data bases, indicators and models addressing global, European, national and
regional dimensions. A European bio-economy observatory shall be developed for
mapping and monitoring Union and global research and innovation activities,
developing key performance indicators, and monitoring innovation policies in
the bio-economy.

3.           Secure, clean and efficient energy

3.1.        Reducing energy
consumption and carbon footprint through smart and sustainable usage

The energy sources and
consumption patterns of Europe's industries, transport, buildings, towns and
cities are largely unsustainable, leading to significant environmental and
climate change impacts. The development of near-zero-emission buildings, highly
efficient industries and mass take-up of energy-efficient approaches by
companies, individuals, communities and cities will require not only
technological advances, but also non-technological solutions such as new
advisory, financing and demand management services. In this way energy
efficiency may provide one of the most cost effective ways to reduce energy
demand, thereby enhancing security of energy supply, reducing environmental and
climate impacts and boosting competitiveness.

3.1.1.     Bring to mass market
technologies and services for a smart and efficient energy use

Reducing energy consumption and eliminating
energy waste, while providing the services that society and economy need,
requires not only that more, efficient, cost-competitive,
environmentally-friendly, and smarter products and services are brought to mass
market but also the integration of components and devices in such a way that
they cooperate to optimise the overall energy use of buildings, services and
industry.

To ensure full adoption and full benefits
for consumers (including the possibility for them to monitor their own
consumption), energy performance of these technologies and services needs to be
customised and optimised for and in their application environments. This
requires not only researching, developing and testing innovative Information
and Communication Technologies (ICT) and monitoring and control techniques but
also large-scale demonstration projects and pre-commercial deployment
activities to ensure interoperability and scalability. Such projects should aim
to develop common procedures to collect, collate and analyse energy consumption
and emissions data to improve the measurability, transparency, social
acceptability, planning and visibility of energy use and its environmental
impacts.

3.1.2.     Unlock the potential of
efficient and renewable heating-cooling systems

A substantial share of energy is consumed
for heating or cooling purposes across the Union and the development of cost-effective
and efficient technologies, system integration techniques e.g. network
connectivity with standardised languages and services in this area would have a
major impact in reducing energy demand. This requires research and
demonstration of new systems and components for industrial as well as
residential applications, for example in decentralised and district supply of
hot water, space heating and cooling. This should encompass different
technologies: solar thermal, geothermal, biomass, heat pumps, combined heat and
power etc, and meet the requirements of near-zero energy buildings and
districts. Further breakthroughs are needed, in particular, in thermal storage
from renewable energy sources and to foster the development and deployment of
efficient combinations of hybrid heating and cooling systems, for centralised and
de-centralised applications.

3.1.3.     Foster European Smart
cities and Communities

Urban areas are one of the largest
consumers of energy in the Union and emit a correspondingly large share of
greenhouse gases, while generating a substantial amount of air pollutants. At
the same time, urban areas are affected by decreasing air quality and climate
change and have to develop their own mitigation and adaptation strategies.
Finding innovative energy solutions (energy efficiency, electricity and heating
and cooling supply systems), integrated with transport, waste and water
treatment as well as ICT solutions for the urban environment are therefore
crucial in the transformation towards a low carbon society. Targeted
initiatives in support to the convergence of industrial value chains of the
energy, transport and ICT sector for smart urban applications need to be
envisaged. At the same time, new technological, organisational, planning and
business models need to be developed and tested at full scale according to the
needs and means of cities and communities. Research is also needed to
understand the social, economic and cultural issues that are involved in this
transformation.

3.2.        Low-cost, low-carbon
electricity supply

Electricity will play a
central role in the establishment of an environmentally sustainable low-carbon
economy. The uptake of low-carbon electricity generation is too slow due to the
high costs involved. There is a pressing need to find solutions that reduce
costs significantly, with enhanced performance and sustainability, to
accelerate the market deployment of low carbon electricity generation. In
particular to:

3.2.1.     Develop the full potential
of wind energy

The objective for wind energy is to reduce
the cost of electricity production of onshore and offshore wind by up to about
20 % by 2020 compared to 2010, to increasingly move offshore, and to enable
proper integration in the electricity grid. The focus will be on the
development, testing and demonstration of next generation wind energy conversion
systems of larger scale, higher conversion efficiencies and higher
availabilities for both on- and off-shore (including remote locations and
hostile weather environments) as well as new serial manufacturing processes.

3.2.2.     Develop efficient, reliable
and cost-competitive solar energy systems

The cost of solar energy, covering
photovoltaics (PV) and concentrating solar power (CSP), should be halved by
2020 compared to 2010, if it is to gain share of the electricity market.

For PV, this will need long term research
on novel concepts and systems, demonstration and testing of mass production
with a view to large-scale deployment.

For CSP, the focus will be on developing
ways to increase efficiency while reducing costs and environmental impact,
enabling industrial up-scaling of demonstrated technologies by building
first-of-a-kind power plants. Solutions to efficiently combine the production
of solar electricity with water desalination will be tested.

3.2.3.     Develop competitive and
environmentally safe technologies for CO2 capture, transport and storage

Carbon capture and storage (CCS) is a key
option that has to be widely deployed on a commercial scale at global level to
meet the challenge of a decarbonised power generation and low carbon industry
by 2050. The objective is to minimise the extra-cost of CCS in the power sector
for coal-fired and gas-fired power plants compared to equivalent plants without
CCS and energy intensive industrial installations.

Support will be given, in particular, to
demonstrate the full CCS chain for a representative portfolio of different
capture, transport and storage technology options. This will be accompanied by
research to further develop these technologies and to deliver more competitive
capture technologies, improved components, integrated systems and processes,
safe geological storage and rational solutions for the large-scale re-use of
captured CO2 to enable the commercial deployment of CCS technologies
for fossil fuel power plants and other carbon-intensive industries going into
operation after 2020.

3.2.4.     Develop geothermal, hydro,
marine and other renewable energy options

Geothermal, hydro, and marine energy as
well as other renewable energies can contribute to the decarbonisation of the
European energy supply while enhancing its flexibility to variable production
and use of energy. The objective is to bring to commercial maturity
cost-effective and sustainable technologies, enabling large-scale deployment at
an industrial scale including grid integration. Ocean
energies such as tidal, current or wave energy offer truly zero-emission,
predictable energy. Research activities should include laboratory scale
innovative research into low-cost reliable components and materials in a high
corrosion, biofouling environment as well as demonstrations under the varied
conditions found in European waters.

3.3.        Alternative fuels and
mobile energy sources

Meeting Europe's energy
and CO2 reduction goals also requires the development of new fuels
and mobile energy sources. This is particularly important to meet the challenge
of smart, green and integrated transport. Value chains for these technologies
and alternative fuels are not sufficiently developed and must be accelerated to
demonstration scale.

3.3.1.     Make bio-energy competitive
and sustainable

The objective for bio-energy is to bring to
commercial maturity the most promising technologies, to permit large-scale,
sustainable production of advanced second generation biofuels of different
value chains for transport, and highly efficient combined heat and power from
biomass, including CCS. The aim is to develop and demonstrate the technology
for different bio-energy pathways at different scales, taking account of
differing geographical and climate conditions and logistical constraints.
Longer term research will support the development of a sustainable bio-energy
industry beyond 2020. These activities will complement upstream (feedstock,
bio-resources) and downstream (integration into vehicle fleets) research
activities carried out in other relevant Societal Challenges.

3.3.2.     Reducing time to market for
hydrogen and fuel cells technologies

Fuel cells and hydrogen have a great
potential to contribute to addressing energy challenges facing Europe. Bringing
these technologies to market competitiveness will require significant cost
decrease. As an illustration the cost of fuel cell systems for transportation
will have to be reduced by a factor 10 over the next 10 years. To do so, support will be given to large
scale demonstrations and pre-commercial deployment activities for portable,
stationary, transport applications and the related services, as well as
long-term research and technology development to build up a competitive fuel
cell chain and a sustainable hydrogen production and infrastructure across the Union.
Strong national and international cooperation is needed
to enable market breakthroughs of a sufficient scale, including the development
of appropriate standards.

3.3.3.     New alternative fuels

There is a range of new options with long
term potential, such as powdered metal fuel, fuel from photosynthetic
microorganisms (in water and land environments) and from artificial
photosynthesis mimics. These new paths may offer potential for more efficient
energy conversion, more cost-competitive and sustainable technologies, and
almost neutral "greenhouse gases" emitting processes that do not
compete for agricultural lands. Support will be given notably to bring these
new and other potential technologies from laboratory to demonstration scale
size in view of pre-commercial demonstration by 2020.

3.4.        A single, smart European
electricity grid

Electricity networks
have to respond to three interrelated challenges to enable a consumer friendly
and increasingly decarbonised electricity system: creating a pan-European
market; integrating a massive increase of renewable energy sources; and
managing interactions between millions of suppliers and customers (where
increasingly households will be both), including owners of electrical vehicles.
Future electricity networks will play a key role for the transition to a fully
decarbonised electricity system, while providing additional flexibility and
cost benefits to the consumers. The overriding goal by 2020 is to transmit and
distribute about 35 % of electricity from dispersed and concentrated renewable
energy sources.

A strongly integrated
research and demonstration effort will support the development of new
components and technologies which will respond to the particularities of both
the transmission and distribution side of the grid, as well as storage.

All options to successfully balance energy
supply and demand must be considered to minimise emissions and costs. New power
systems technologies and a bi-directional digital communication infrastructure
must be researched and integrated into the electricity grid. This will
contribute to better plan, monitor, control and securely operate networks in
normal and emergency conditions as well as to manage the interactions between
suppliers and customers and to transport, manage and trade energy flow. For the
deployment of future infrastructure, indicators and cost benefit analysis
should take into account energy system-wide considerations. In addition, synergies
between smart grids and telecommunication networks will be maximised in order
to avoid duplication of investments and to accelerate the take up of smart
energy services

Novel energy storage means (including both large scale and
batteries) and vehicle systems will provide the required flexibility between
production and demand. Improved ICT technologies will further increase the
flexibility of electricity demand by providing customers (industrial,
commercial and residential) with the necessary automation tools.

New planning,
market and regulatory designs need to drive the overall efficiency and
cost-effectiveness of the electricity supply chain and interoperability of
infrastructures as well as the emergence of an open and competitive market for
smart grid technologies, products and services. Large-scale demonstration
projects are needed to test and validate solutions and assess the benefits for
the system and for individual stakeholders, before deploying them across
Europe. This should be accompanied by research to understand how consumers and
businesses react to economic incentives, behavioural changes, information
services and other innovative opportunities provided by smart grids.

3.5.        New knowledge and
technologies

Novel, more efficient
and cost-competitive technologies will be required for the long term. Progress
should be accelerated through multi-disciplinarily research to achieve
scientific breakthroughs in energy related concepts and enabling technologies
(e.g. nano-science, material science, solid state physics, ICT, bio-science,
computation, space); as well as the development of innovations in future and
emerging technologies.

Advanced research will
also be needed to provide solutions to adapt energy systems to changing
climatic conditions. Priorities may be adjusted to new scientific and
technological needs and opportunities or newly-observed phenomena which could
indicate promising developments or risks to society and that may emerge during
the course of implementation of Horizon 2020.

3.6.        Robust decision making and
public engagement

Energy research should
support and be strongly aligned with the energy policy. Extensive knowledge of
energy technologies and services, infrastructure, markets (including regulatory
frameworks) and consumer behaviour is required to provide policy makers with
robust analyses. Support will be given, in particular in the frame of the
European Commission's Information System of the SET-Plan, to develop robust and
transparent tools, methods and models to assess the main economic and social
issues related to energy; to build databases and scenarios for an enlarged Union
and the assessment of the impact of energy and energy-related policies on
security of supply, the environment and climate change, society and
competitiveness of the energy industry; to carry out socio-economic research
activities.

Taking advantage of the
possibilities offered by web and social technologies, consumer behaviour including
that of vulnerable consumers like persons with disabilities and behavioural
changes will be studied in open innovation platforms such as the Living Labs
and large scale demonstrators for service innovation.

3.7.        Market uptake of energy
innovation, empowering markets and consumers

Innovative market uptake and replication
solutions are essential to rollout new energy technologies in time and through
a cost effective implementation. In addition to technology-driven research and
demonstration, this requires actions with clear Union added value aiming to
develop, apply, share and replicate non-technological innovations with a high
leverage factor in Union's sustainable energy markets across disciplines and
levels of governance.

Such innovations will focus
on creating favourable market conditions at the regulatory, administrative and
financing level for low-carbon, renewable and energy efficiencies technologies
and solutions. Support will be given to measures facilitating the energy policy
implementation, preparing the ground for rollout of the investments, supporting
the capacity building and acting on public acceptance.

Research and analysis
repeatedly confirms the crucial role of the human factor in the success and
failure of sustainable energy policies. Innovative organisational structures,
the dissemination and exchange of good practices and specific training and
capacity building actions will be encouraged.

3.8.        Specific implementation
aspects

The priority setting for the implementation
of the activities in this challenge is led by the need to strengthen the
European dimension of energy research and innovation. A main aim will be to
support the implementation of the research and innovation agenda of the
Strategic Energy Technology Plan (SET Plan)[24]
to achieve the objectives of the Union's energy and climate change policy. The
SET-Plan roadmaps and implementation plans will therefore provide a valuable
input for the formulation of the work programmes. The SET Plan governance
structure will be used as a principle basis for strategic priority setting and
the coordination of Energy Research and innovation across the Union.

The non-technological agenda will be guided
by the Union's energy policy and legislation. The
enabling environment for mass deployment of demonstrated technological and
service solutions, processes and policy initiatives for low-carbon technologies
and energy efficiency across the Union shall be supported. This may involve
support to technical assistance for development and roll-out of energy
efficiency and renewable energy investments.

Partnering with European stakeholders will
be important to share resources and implement jointly. It may be envisaged, on
a case by case basis, that existing European Industrial Initiatives of the SET Plan
are turned into formalised public-private partnerships, if considered
appropriate, to increase the level and coherence of national funding and to
stimulate joint research and innovation actions among Member States. Consideration will be given to provide support, including
with Member States, to alliances of public research performers, in particular,
the European Energy Research Alliance established under the SET Plan to pool
public research resources and infrastructures to address critical research
areas of European interest. International coordination actions shall
support the SET Plan priorities according to the variable geometry principle, taking
account of countries capabilities and specificities.

The European
Commission's Information System of the SET-Plan will be mobilised to develop,
together with stakeholders, key performance indicators (KPIs) to monitor the
progress of implementation and which will be revised on a regular basis to
account of the latest developments. More broadly, implementation under this
Challenge will seek to improve the coordination of relevant Union Programmes,
initiatives and policies, such as Cohesion policy, in particular through the
national and regional strategies for smart specialisation, and the Emission
Trading Scheme mechanisms, for example concerning support to demonstration
projects.

4.           Smart, green and integrated transport

4.1.        Resource efficient
transport that respects the environment

Europe has set a policy target of achieving
a 60 % reduction of CO2 by 2050. It aims at halving the use of
‘conventionally-fuelled’ cars in cities and achieving virtually CO2-free
city logistics in major urban centres by 2030. Low-carbon fuels in aviation
should reach 40 % by 2050, and CO2 emissions from maritime bunker
fuels should be reduced by 40 % by 2050.

Research and innovation will substantially
contribute to the development and take up of the necessary solutions for all transport
modes, which will drastically reduce transport's emissions that are harmful to
the environment (such as CO2, NOx, and SOx),
lower its dependence on fossil fuels, and hence reduce transport impact on
biodiversity and preserve natural resources.

This will be done through work on the
following specific activities:

4.1.1.     Making aircraft, vehicles
and vessels cleaner and quieter will improve environmental performance and
reduce perceived noise and vibration

The activities in this domain will focus on
the end products, but will also address lean and ecological design and
manufacturing processes, with recyclability integrated in the design phase.

(a)
Developing and accelerating the take-up of cleaner
propulsion technologies is important for reducing or eliminating CO2
and pollution from transport. New and innovative solutions are necessary, based
on electric engines and batteries, fuel cells, or hybrid propulsion.
Technological breakthroughs will also help improve the environmental
performance of traditional propulsion systems.

(b)
Exploring options for the use of low emission
alternative energies will help reduce the consumption of fossil fuels. This
includes using sustainable fuels and electricity from renewable energy sources
in all modes of transport including aviation, reducing fuel consumption through
energy harvesting or diversified energy supply and other innovative solutions.
New holistic approaches will be pursued encompassing vehicles, energy storage
and energy supply infrastructure, including vehicle-to-grid interfaces and
innovative solutions for the use of alternative fuels.

(c)
Reducing the weight of aircraft, vessels and
vehicles and lowering their aerodynamic, hydrodynamic or rolling resistance by
using lighter materials, leaner structures and innovative design, will
contribute to lower fuel consumption.

4.1.2.     Developing smart equipment,
infrastructures and services

This will help
optimise transport operations and reduce resource consumption. The focus will
be on the efficient use and management of airports, ports, logistic platforms
and surface transport infrastructures, as well as on autonomous and efficient
maintenance and inspection systems. Particular attention will be given to the
climate resilience of infrastructures, cost-efficient solutions based on a
life-cycle approach, and the wider take-up of new materials allowing for more
efficient and lower cost maintenance. Attention will also be paid to
accessibility and social inclusiveness.

4.1.3.     Improving transport and
mobility in urban areas

This will benefit a
large and increasing share of the population which lives and works in cities or
uses them for services and leisure. New mobility concepts, transport
organisation, logistics and planning solutions need to be developed and tested,
which will contribute to reduce air pollution and noise, and improve
efficiency. Public and non-motorised transport as well as other
resource-efficient transport options should be developed as a real alternative
to the use of private motor vehicles, supported by greater use of intelligent
transport systems as well as by innovative demand management.

4.2.        Better mobility, less
congestion, more safety and security

Relevant European transport policy goals
aim to optimise performance and efficiency in the face of growing demands for
mobility, to make Europe the safest region for aviation and to move towards the
target of zero fatalities in road transport by 2050. By 2030, 30 % of road
freight transport over 300 kilometres should shift to rail and waterborne
transport. A continuous and efficient pan-European transport of people and
goods, also internalising external costs, requires a new European multimodal
transport management, information and payment system.

Research and innovation will make important
contributions to these ambitious policy goals through activities in the
following specific activities:

4.2.1.     A substantial reduction of
traffic congestion

This can be achieved by implementing
a fully intermodal ‘door-to-door’ transport system and by avoiding unnecessary
use of transport. This means promoting greater integration between transport
modes, the optimisation of transportation chains and better integrated
transport services. Such innovative solutions will also facilitate
accessibility, including for the ageing population and vulnerable users.

4.2.2.     Substantial improvements in
the mobility of people and freight

This can be achieved through the
development and widespread use of intelligent transport applications and
management systems. This entails: planning, demand management, information and
payment systems that are interoperable Europe-wide; and the full integration of
information flows, management systems, infrastructure networks and mobility
services into a new common multi-modal framework based on open platforms. This
will also ensure flexibility and rapid responses to crisis events and extreme
weather conditions by reconfiguring travel across modes. New positioning,
navigation and timing applications, made possible through the Galileo and EGNOS
satellite navigation systems, will be instrumental in achieving this objective.

(a)
Innovative air traffic management technologies
will contribute to a step-change in safety and efficiency with rapidly
increasing demand, to achieve improved punctuality, to reduce time spent in travel-related
procedures at airports and to achieve resilience in the air transport system.
The implementation and further development of the ‘Single European Sky’ will be
supported with solutions for increased automation and autonomy in air traffic
management and aircraft control, better integration of air and ground
components, and novel solutions for the efficient and seamless handling of
passengers and freight throughout the transport system.

(b)
For waterborne transport, improved and
integrated planning and management technologies will contribute to the
emergence of a ‘Blue Belt’ in the seas around Europe, improving port
operations, and to a suitable framework for inland waterways.

(c)
For rail and road, the optimisation of network
management will improve efficient use of infrastructure and make cross-border
operations easier. Comprehensive cooperative road traffic management and
information systems will be developed, relying on vehicle to vehicle and
vehicle to infrastructure communication.

4.2.3.     Developing and applying new
concepts of freight transport and logistics

This can reduce pressure on the
transport system and improve safety and freight capacity. They can, for
example, combine high performance and low environmental impact vehicles with
smart, secure on-board and infrastructure-based systems (e.g. road trains).
Activities will also support the development of the e-Freight vision of a
paperless freight transport process, where electronic information flows,
services and payments are linked to physical freight flows across transport
modes.

4.2.4.     Reducing accident rates and
fatal casualties and improving security

This will be achieved by addressing
aspects inherent to the organisation, management and monitoring of performance
and risk of transport systems; and by focusing on the design and operations of
aircraft, vehicles and vessels, infrastructures and terminals.. The focus will
be on passive and active safety, preventive safety, and enhanced automation and
training processes to reduce the impact of human errors. To better anticipate,
assess and mitigate the impact of weather and other natural hazards, special
tools and techniques will be devised. Activities will also focus on the
integration of security aspects in the planning and management of passenger and
freight flows, on the conception of aircraft, vehicles and vessels, on traffic
and system management and on the design of terminals.

4.3.        Global leadership for the
European transport industry

By staying ahead in new technologies and
reducing the costs of existing manufacturing processes, research and innovation
will contribute to growth and highly skilled jobs in the European transport
industry, in the face of growing competition. At stake is the preservation of
the competitiveness of a major economic sector that directly represents 6.3 %
of the Union GDP and employs nearly 13 million people in Europe. Specific
objectives include the development of the next generation of innovative
transport means and to prepare the ground for the following one, by working on
novel concepts and designs, smart control systems and efficient production
processes. Europe aims at becoming the world-leader in efficiency and safety in
all modes of transport.

Research and innovation will focus on the
following specific activities:

4.3.1.     Developing the next
generation of transport means as the way to secure market share in the future

It will help enhance European leadership in
aircraft, high speed trains, (sub)urban rail transport, road vehicles,
electromobility, passenger cruise ships, ferries and specialised high
technology ships and marine platforms. It will also spur the competitiveness of
European industries in upcoming technologies and systems and support their
diversification towards new markets, including in sectors other than transport.
This includes the development of innovative safe aircraft, vehicles and vessels
that incorporate efficient propulsion units, high performance and intelligent
control systems.

4.3.2.     On board, smart control
systems

These are needed to realise higher levels
of performance and system integration in transport. Appropriate interfaces for
communications between aircraft, vehicles, vessels and infrastructures in all
relevant combinations will be developed, with a view to defining common
operational standards.

4.3.3.     Advanced production
processes

These will allow customization, lower
lifecycle cost and development time and facilitate the standardisation and
certification of aircraft, vehicles and vessels, and related infrastructure.
Activities in this area will develop fast and cost efficient design and
manufacturing techniques, including assembly, construction, maintenance and
recycling, through digital tools and automation, and capacity to integrate
complex systems. This will foster competitive supply chains able to deliver
with short time-to-market and reduced costs.

4.3.4.     Exploring entirely new
transport concepts

This will help enhance Europe's
competitive edge in the longer term perspective. Strategic research and proof
of concept activities shall address innovative transport systems and services,
including fully automated and other new types of aircraft, vehicles and vessels
with long term potential.

4.4.        Socio-economic research
and forward looking activities for policy making

Actions to support policy analysis and
development including on socio-economic aspects of transport are necessary to
promote innovation and meet the challenges raised by transport. Activities will
target the development and implementation of European research and innovation
policies for transport, prospective studies and technology foresight, and
strengthening of the European Research Area.

Understanding user behaviour, social
acceptance, impact of policy measures, mobility patterns and business models
and their implications are of paramount importance for the evolution of the
European transport system. Scenario development taking into account societal
trends, policy objectives and technology foresight in a 2050 perspective will
be carried out. In view of better understanding the links between territorial
development and the European transport system, robust models are needed on
which sound policy decisions can be taken.

Research will focus on how to prevent
social inequalities in access to mobility, and how to improve the position of
vulnerable road users. Economic issues must also be addressed, focusing on ways
to internalise the externalities from transport across modes, as well as
taxation and pricing models. Prospective research is needed to assess future
requirements for skills and jobs.

4.5.        Specific implementation
aspects

In establishing the priorities in the work
programme, in addition to the input of the external independent advice and of the
various European Technology Platforms, account will be taken of the work carried
out in the framework of the Strategic Transport Technology Plan.

5.           Climate action, resource efficiency and
raw materials

5.1.        Fighting and adapting to
climate change

Current CO2 concentrations in
the atmosphere are close to 40 % higher than those at the start of the
industrial revolution and at the highest levels experienced in the last
2 million years. Non-CO2 greenhouse gases also contribute to
climate change and are playing an increasingly significant role. Without
decisive action, climate change could cost the world at least 5 % of GDP each
year; and up to 20 % under some scenarios. In contrast, with early and
effective action the net costs could be limited to around 1 % of GDP per year. Meeting the 2°C target and
avoiding the worst impacts of climate change will require developed countries
to cut greenhouse gas emissions by 80-95 % by 2050 compared to 1990 levels.

The aim of this activity is therefore to
develop and assess innovative, cost-effective and sustainable adaptation and
mitigation measures, targeting both CO2 and non-CO2 greenhouse
gases, and underlining both technological and non-technological green
solutions, through the generation of evidence for informed, early and effective
action and the networking of the required competences.

To achieve
this, research and innovation will focus on the following:

5.1.1.     Improve the understanding
of climate change and the provision of reliable climate projections

Better understanding of the causes and
evolution of climate change and more accurate climate projections are crucial
for society to protect lives, goods and infrastructures and ensure effective
decision making. It is essential to further improve the scientific knowledge-base
of climate drivers, processes, mechanisms and feedbacks associated with the
functioning of oceans, terrestrial ecosystems and the atmosphere. Improved
climate predictions at pertinent temporal and spatial scales will be supported
via the development of more accurate scenarios and models, including fully
coupled Earth-system models.

5.1.2.     Assess impacts,
vulnerabilities and develop innovative cost-effective adaptation and risk
prevention measures:

There is incomplete knowledge on the
ability of society and the economy to adapt to climate change. Effective,
equitable and socially acceptable measures towards a climate resilient environment
and society require the integrated analysis of current and future impacts,
vulnerabilities, population exposure, risks, costs and opportunities associated
with climate change and variability, taking into account extreme events and
related climate-induced hazards and their recurrence. This analysis will also
be developed on the adverse impacts of climate change on biodiversity, ecosystems
and ecosystem services, infrastructures and economic and natural assets.
Emphasis will be placed on the most valuable natural ecosystems and built
environments, as well as key societal, cultural and economic sectors across
Europe. Actions will investigate the impacts and growing risks for human health
stemming from climate change and increased greenhouse gases concentrations in
the atmosphere. Research will evaluate innovative, equitably distributed
and cost-effective adaptation responses to climate change, including the protection and adaptation of natural resources and
ecosystems, and related effects, to inform and support
their development and implementation at all levels and scales. This will also
include the potential impacts, costs and risks, of geo-engineering options. The
complex inter-linkages, conflicts and synergies of adaptation and
risk-prevention policy choices with other climate and sectoral policies will be
investigated, including impacts on employment and the living standards of
vulnerable groups.

5.1.3.     Support mitigation policies

The Union's transition to a competitive, resource efficient and climate change resilient economy
by 2050 requires the design of effective, long-term, low-emission strategies
and major advancements in our capacity to innovate. Research will assess the
environmental and socio-economic risks, opportunities and impacts of climate
change mitigation options. Research will support the development and
validation of new climate-energy-economy models, taking into account economic
instruments and relevant externalities, with the aim of testing mitigation
policy options and low carbon technology pathways at different scales and for
the key economic and societal sectors at Union and global level. Actions will
facilitate technological, institutional and socio-economic innovation by improving
the links between research and application and between entrepreneurs, end
users, researchers and knowledge institutions.

5.2.        Sustainably managing
natural resources and ecosystems

Societies face a major challenge to
establish a sustainable balance between human needs and the environment.
Environmental resources, including water, air, biomass, fertile soils,
biodiversity, ecosystems and the services they provide, underpin the
functioning of the European and global economy and quality of life. Global business opportunities related to natural resources
are expected to amount to over EUR 2 trillion
by 2050[25]. Despite this, ecosystems in Europe and globally
are being degraded beyond nature's ability to regenerate them and environmental
resources are being over-exploited. For example, 1000 km2 of some of the most
fertile soils and valuable ecosystems are lost every
year in the Union, while a quarter of fresh water is wasted. Continuing
these patterns is not an option. Research must contribute to reversing the trends
that damage the environment and to ensuring that ecosystems continue to provide
the resources, goods and services that are essential for well-being and
economic prosperity.

The aim of this
activity is therefore to provide knowledge for the management of natural
resources that achieves a sustainable balance between limited resources and the
needs of society and the economy.

To achieve this, research and innovation will
focus on the following:

5.2.1.     Further our understanding
of the functioning of ecosystems, their interactions with social systems and
their role in sustaining the economy and human well-being.

Society's actions risk triggering changes
in the environment that are irreversible and which alter the character of
ecosystems. It is vital to anticipate these risks by assessing, monitoring and
forecasting the impact of human activities on the environment, and
environmental changes on human well-being. Research on marine, (from coastal
zones to the deep sea), fresh-water, terrestrial and urban ecosystems, including groundwater dependent ecosystems,
will improve our understanding of the complex interactions between natural
resources and social, economic, and ecological systems, including natural
tipping points, and the resilience, or fragility, of human and biological
systems. It will examine how ecosystems function and react to anthropogenic
impacts, how they can be restored, and how this will affect economies and human
well-being. It will also investigate solutions for
addressing resource challenges. It will contribute to
policies and practices that ensure that social and economic activities operate
within the limits of the sustainability and adaptability of ecosystems and
biodiversity.

5.2.2.     Provide knowledge and tools
for effective decision making and public engagement

Social, economic and governance systems
still need to address both resource depletion and the damage to ecosystems. Research and innovation will underpin policy decisions
needed to manage natural resources and ecosystems so as to avoid, or adapt to, disruptive climate and
environmental change and to promote institutional, economic, behavioural and
technological change that ensure sustainability. Emphasis will be put on
critical policy relevant ecosystems and ecosystem services, such as fresh
water, seas and oceans, air quality, biodiversity, land use and soil. The
resilience of societies and ecosystems to catastrophic events, including
natural hazards, will be supported through improving capacities for
forecasting, early warning, and assessing vulnerabilities and impacts, including
the multi-risk dimension. Research and innovation will
thus provide support for environmental and
resource efficiency policies, and options for effective evidence-based governance within safe operating
limits. Innovative ways will be developed to increase
policy coherence, resolve trade-offs and manage conflicting interests, and
improve public awareness of research results and the participation of citizens
in decision-making.

5.3.        Ensuring the sustainable
supply of non-energy and non-agricultural raw materials

Sectors such as construction, chemicals,
automotive, aerospace, machinery and equipment, which have a combined added
value in excess of EUR 1,000 billion and provide employment for some 30 million
people, all depend on access to raw materials. The Union is self-sufficient in
construction minerals. Nonetheless, whilst the Union is one of the world's
largest producers of certain industrial minerals, it remains a net importer of
most of them. Furthermore, the Union is highly dependent on imports of metallic
minerals and is totally import dependent for some critical raw materials.

Recent trends indicate that demand for raw
materials will be driven by the development of emerging economies and by the
rapid diffusion of key enabling technologies. Europe has to ensure a
sustainable management and secure a sustainable supply of raw materials from
inside and outside its borders for all sectors that depend on access to raw
materials. Policy targets for critical raw materials are outlined in the
Commission's Raw Materials Initiative[26].

The aim of this activity is therefore to improve
the knowledge base on raw materials and develop innovative solutions for the
cost-effective and environmentally friendly exploration, extraction,
processing, recycling and recovery of raw materials and for their substitution
by economically attractive alternatives with a lower environmental impact.

To achieve this, research and innovation will
focus on the following:

5.3.1.     Improve the knowledge base
on the availability of raw materials

The assessment of the long-term
availability of global and Union resources, including access to urban mines
(landfills and mining waste), deep-sea resources (e.g., the sea-bed mining of
rare earth minerals) and the associated uncertainties will be improved. This
knowledge will help society reach a more efficient use, recycling and reuse of scarce
or environmentally harmful raw materials. It will also develop global rules,
practices and standards governing economically viable, environmentally sound
and socially acceptable resource exploration, extraction and processing,
including practices in land use and marine spatial planning.

5.3.2.     Promote the sustainable
supply and use of raw materials, covering exploration, extraction, processing,
recycling and recovery

Research and
innovation is needed over the entire life cycle of materials, in order to
secure an affordable, reliable, and sustainable supply and management of raw
materials essential for European industries. Developing and deploying
economically viable, socially acceptable and environmentally friendly
exploration, extraction and processing technologies will boost the efficient
use of resources. This will also exploit the potential of urban mines. New and
economically viable recycling and materials recovery technologies, business
models and processes will also contribute to reducing the Union’s dependence on
the supply of primary raw materials. This will include the need for longer use,
high-quality recycling and recovery, and the need to drastically reduce
resource wastage. A full life-cycle approach will be taken, from the supply of
available raw materials to end of life, with minimum energy and resources
requirements.

5.3.3.     Find alternatives for
critical raw materials

In anticipation of the possible reduced
global availability of certain materials, due for example to trade
restrictions, sustainable substitutes and alternatives for critical raw
materials, with similar functional performance, will be investigated and
developed. This will reduce the Union's dependence on primary raw materials and
improve the impact on the environment.

5.3.4.     Improve societal awareness
and skills on raw materials

The necessary move to a more self-reliant
and resource efficient economy will require cultural, behavioural,
socio-economic and institutional change. In order to address the growing
problem of skills shortage in the Union's raw materials sector, (including the
European mining industry), more effective partnerships between universities and
geological surveys and industry will be encouraged. It will also be essential
to support the development of innovative green skills. In addition there is
still limited public awareness of the importance of domestic raw materials for
the European economy. To facilitate the necessary structural changes, research
and innovation will aim to empower citizens, policy-makers, practitioners and
institutions.

5.4.        Enabling the transition
towards a green economy through eco-innovation

The Union cannot prosper in a world of ever
increasing resource consumption, environmental degradation and biodiversity
loss. Decoupling growth from the use of natural resources requires structural
changes in how such resources are used, re-used and managed, while safeguarding
our environment. Eco-innovations will enable us to
reduce pressure on the environment, increase resource efficiency, and put
the Union on the path to a resource and energy efficient economy.
Eco-innovation also creates major opportunities for growth and jobs, and
increases European competitiveness within the global market, which is estimated
to grow to a trillion Euro market after 2015[27].
Already 45 % of companies have introduced some type of eco-innovation. It has
been estimated that around 4 % of eco-innovations led to more than a 40 %
reduction of material use per unit of output[28],
highlighting the great future potential.

The aim of this activity is therefore to
foster all forms of eco-innovation that enable the transition to a green
economy.

To achieve this, research and innovation will
focus on the following:

5.4.1.     Strengthen eco-innovative
technologies, processes, services and products and boost their market uptake.

All forms of innovation, both incremental
and radical, combining technological, organisational, societal, behavioural,
business and policy innovation, and strengthening the participation of civil
society, will be supported. This will underpin a more circular economy, while
reducing environmental impacts and taking account of rebound effects on the
environment. This will include business models, industrial symbiosis, product
service systems, product design, full life cycle and cradle-to-cradle
approaches. The aim will be to improve resource
efficiency by reducing, in absolute terms, inputs,
waste and the release of harmful substances along the value chain and foster
re-use, recycling and resource substitution. Emphasis will be given to
facilitate the transition from research to market, involving industry and
notably SMEs, from the development of prototypes to their introduction in the
market and replication. Networking among eco-innovators will also seek to
enhance the dissemination of knowledge and better link supply with demand.

5.4.2.     Support innovative policies
and societal changes

Structural and institutional changes are
needed to enable the transition towards a green economy. Research and
innovation will address the main barriers to societal and market change and
will aim to empower consumers, business leaders and policy makers to adopt
innovative and sustainable behaviour. Robust and transparent tools, methods and
models to assess and enable the main economic, societal and institutional
changes needed to achieve a paradigm shift towards a green economy will be
developed. Research will explore how to promote sustainable consumption
patterns, encompassing socio-economic research, behavioural science, user
engagement and public acceptance of innovation, as well as activities to
improve communication and public awareness. Full use will be made of
demonstration actions.

5.4.3.     Measure and assess progress
towards a green economy

It is necessary to develop robust
indicators at all appropriate
spatial scales that are complementary to GDP, methods and systems to support and assess the transition towards a
green economy and the effectiveness of relevant policy options. Driven by a
life-cycle approach, research and innovation will improve the quality and
availability of data, measurement methods and systems relevant to resource
efficiency and eco-innovation and facilitate the development of innovative
offset schemes. Socio economic research will provide a better understanding of the root causes of producer and
consumer behaviour and thus contribute to the design of more
effective policy instruments to facilitate the transition to a resource efficient
and climate change resilient
economy. Moreover, technology
assessment methodologies and integrated modelling will be developed to support
resource efficiency and eco-innovation policies at all levels, while increasing
policy coherence and resolving trade-offs. The results will enable the
monitoring, assessment and reduction in material and energy flows involved in
production and consumption, and will enable policy-makers and businesses to integrate environmental costs and externalities into their
actions and decisions.

5.4.4.     Foster resource efficiency
through digital systems

Innovations in information and
communication technologies can constitute a key tool to support resource
efficiency. To achieve this objective, modern and innovative ICT will
contribute to significant efficiency gains in productivity, notably through
automated processes, real time monitoring and decision support systems. The use
of ICT will look to accelerate a progressive dematerialisation of the economy,
by increasing the shift towards digital services, and to facilitate changes of
consumption behaviours and business models through the use of the ICT of the
future.

5.5.        Developing comprehensive
and sustained global environmental observation and information systems

Comprehensive environmental observation and
information systems are essential to ensure the delivery of the long-term data
and information required to address this challenge. These systems will be used
to assess and predict the condition, status and trends of the climate, natural
resources including raw materials, ecosystems and ecosystem services, as well
as to evaluate low-carbon and climate mitigation and adaptation policies and
options across all sectors of the economy. Information and knowledge from these
systems will be used to stimulate the smart use of strategic resources; to
support the development of evidence-based policies; to foster new environmental
and climate services; and to develop new opportunities in global markets.

Capabilities, technologies and data
infrastructures for earth observation and monitoring must build on advances in
ICT, space technologies and enabled networks, remotely sensed observations,
novel in situ sensors, mobile services, communication networks, participatory
web-service tools and improved computing and modelling infrastructure, with the
aim of continuously providing timely and accurate information, forecasts and
projections. Free, open and unrestricted access to interoperable data and information
will be encouraged, as well as the effective storage, management and
dissemination of research results.

5.6.        Specific implementation
aspects

Activities will enhance the Union's
participation in and financial contribution to multilateral processes and
initiatives, such as the Intergovernmental Panel on Climate Change (IPCC), the
Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES), and
the Group on Earth Observations (GEO). Cooperation with other major public and
private research funders will improve global and European research efficiency
and contribute to global research governance.

S&T cooperation will contribute to the
UNFCCC global technology mechanism and facilitate technology development,
innovation and transfer in support of climate adaptation and the mitigation of
greenhouse gases.

Building on the outcomes of the UN Rio+20
Conference, a mechanism will be explored to systematically collect, collate and
analyse scientific and technological knowledge on key
sustainable development and green economy issues, which
will include a framework for measuring progress. This will complement existing
scientific panels and bodies and seek synergies with them.

Research actions under this challenge will
contribute to Global Monitoring for Environment and Security (GMES) operational
services by providing a developmental knowledge base for GMES.

Specific measures will ensure that results
from Union research and innovation in the fields of climate, resource
efficiency and raw materials are used downstream by other Union programmes,
such as the LIFE + programme, regional and structural funds, and external
cooperation programmes.

An Advisory Network of Institutes may be
established to provide: the continuous analysis of scientific and technological
progress in the Union and its major partner countries and regions; an early
investigation of market opportunities for new environmental technologies and
practices; foresight for research & innovation and policy.

6.           Inclusive, innovative and secure societies

6.1.        Inclusive societies

Current trends at play in European
societies bring with them opportunities for a more united Europe but also
risks. These opportunities and risks need to be understood and anticipated in
order for Europe to evolve with adequate solidarity and cooperation at social,
economic, political and cultural levels, taking into account an increasingly
interconnected world.

In this context, the objective is to
enhance social, economic and political inclusion, combat poverty, enhance human
rights, digital inclusiveness, equality, solidarity and inter-cultural dynamics
by supporting interdisciplinary research, indicators, technological advances,
organisational solutions and new forms of collaboration and co-creation.
Research and other activities shall support the implementation of the Europe
2020 strategy as well as other relevant Union foreign policies. Humanities
research may have an important role to play in this context. Specifying,
monitoring and assessing the objectives of European strategies and policies
will require focused research on high-quality statistical information systems,
and the development of adapted instruments that allow policy makers to assess
the impact and effectiveness of envisaged measures, in particular in favour of
social inclusion.

The following specific objectives will be
pursued:

6.1.1.     Promoting smart,
sustainable and inclusive growth

The constant quest for economic growth
carries a number of important human, social, environmental and economic costs.
A smart, sustainable and inclusive growth in Europe implies substantial changes
in the way growth and wellbeing are defined, measured (including through the
measurement of progress beyond the commonly used GDP indicator), generated and
sustained over time. Research will analyse the development of sustainable
lifestyles and socio-economic behaviours and values and how they relate to
paradigms, policies and to the functioning of institutions, markets, firms,
governance and belief systems in Europe. It will develop tools for a better
assessment of the contextual and mutual impacts of such evolutions and policy
options in areas such as employment, taxation, inequalities, poverty, social
inclusion, education and skills, community development, competitiveness and the
Internal Market. It will also analyse how national economies evolve and which
forms of governance at European and international level could help prevent
macro-economic imbalances, monetary difficulties, fiscal competition,
unemployment and employment problems and other forms of economic and financial
disorders. It will take into account the growing interdependencies between Union
and global economies, markets and financial systems.

6.1.2.     Building resilient and
inclusive societies in Europe

Understanding social transformations in
Europe requires the analysis of changing democratic practices and expectations
as well as of the historical evolution of identities, diversity, territories,
religions, cultures and values. This includes a good understanding of the
history of European integration. Besides, understanding the strains and
opportunities arising from the uptake of ICT, both at individual and collective
levels, is important in order to open new paths of inclusive innovation. It is
essential to identify ways to adapt and improve the European welfare systems,
public services and the broader social security dimension of policies in order
to achieve cohesion and promote more social and economic equality and
intergenerational solidarity. Research will analyse how societies and politics
become more European in a broad sense through evolutions of identities,
cultures and values, the circulation of ideas and beliefs and combinations of
principles and practices of reciprocity, commonality and equality. It will
analyse how vulnerable populations can participate fully in society and
democracy, notably through the acquisition of various skills and the protection
of human rights. The analysis of how political systems respond or not to such
social evolutions and themselves evolve will thus be central. Research will
also address the evolution of key systems that provide underlying forms of
social bonds, such as family, work, education and employment and help combat
poverty. It will take into account the importance of migration and demography
in the future development of European policies.

Given the increasing socio-economic
importance of digital inclusion, research and large-scale innovation actions
will promote inclusive ICT solutions and the effective acquisition of digital
skills leading to the empowerment of citizens and a competitive workforce.
Emphasis will be given to new technological advances that will enable a radical
improvement in personalisation, user-friendliness and accessibility through a
better understanding of citizen, consumer and user behaviours and values,
including persons with disabilities. This will require an "inclusion by
design" research and innovation approach.

6.1.3.     Strengthening Europe's role
as a global actor.

Europe's distinct historical, political,
social and cultural system is increasingly confronted with the impact of global
changes. In order to further develop its external action in its neighbourhood
and beyond and its role as a global actor, Europe has to improve its capacities
for defining, prioritising, explaining, assessing and promoting its policy
objectives with other world regions and societies to further cooperation or
prevent or solve conflicts. In this regard, it also has to improve its
capacities for anticipating and responding to the evolution and impacts of
globalisation. This requires a greater understanding of the history, cultures
and political-economic systems of other world regions, as well as of the role
and influence of transnational actors. Finally, Europe also has to contribute
effectively to global governance in key domains like trade, development, work,
economic cooperation, human rights, defence and security. This implies the
potential to build new capacities whether in terms of tools, systems and
instruments of analysis or in terms of diplomacy in formal and informal
international arena with governmental and non governmental actors.

6.1.4.     Closing the research and
innovation divide in Europe

There are significant regional disparities
across Europe in research and innovation performance which need to be
addressed. Measures will aim at unlocking excellence and innovation and will be
distinct, complementary and synergistic with policies and actions of the Cohesion
policy Funds. They include:

–
Linking in a competition emerging institutions,
centres of excellence and innovative regions in less developed Member States to
international leading counterparts elsewhere in Europe. This will involve teaming
of excellent research institutions and less developed regions, twinningof staff
exchanges, expert advice and assistance and the development of joint strategies
for the establishment of centres of excellence that may be supported by the
Cohesion policy funds in less developed regions. Building links with innovative
clusters and recognising excellence in less developed regions, including
through peer reviews and awarding labels of excellence to those institutions
that meet international standards, will be considered.

–
Establishing 'ERA Chairs' to attract outstanding
academics to institutions with a clear potential for research excellence, in
order to help these institutions fully unlock this potential and hereby create
a level playing field for research and innovation in the European Research
Area. This will include institutional support for creating a competitive
research environment and the framework conditions necessary for attracting,
retaining and developing top research talent within these institutions.

–
Supporting access to international networks for
excellent researchers and innovators who lack sufficient involvement in European
and international networks. This will include support provided through COST and
National Contact Points.

–
Supporting the development and monitoring of
smart specialisation strategies. A policy support facility will be developed
and policy learning at regional level will be facilitated through international
evaluation by peers and best practice sharing.

6.2.        Innovative societies

The shrinking Union share of global
knowledge production emphasizes the need to maximise the socio-economic impacts
and efficiency of research and innovation policies and to increase
substantially transnational policy synergies and coherence. Innovation will be
addressed in a wide sense, including large scale policy, user- and
market-driven innovation. These activities will support the achievement and
functioning of the European Research Area and in particular the Flagship
initiatives of the Europe 2020 strategy in favour of the 'Innovation Union' and
the 'Digital Agenda for Europe'.

The following specific objectives will be
pursued:

6.2.1.     Strengthening the evidence
base and support for the Innovation Union and European Research Area

In order to assess and prioritise
investments and strengthen the Innovation Union and the European Research Area,
the analysis of research and innovation policies, systems and actors in Europe
and third countries as well as the development of indicators, data and
information infrastructures will be supported. Forward-looking activities and
pilot initiatives, economic analysis, policy monitoring, mutual learning,
coordination tools and activities and the development of methodologies for
impact assessment and evaluations will also be needed, exploiting direct
feedback from research stakeholders, enterprises, public authorities and
citizens.

To ensure a single market for research and
innovation, measures to incentivise ERA compatible behaviour will be
implemented. Activities underpinning policies related to the quality of
research training, mobility and career development of researchers will be supported, including initiatives to provide for mobility
services, open recruitment, researchers' rights and links with global
researcher communities. These activities will be implemented seeking synergies
and close coordination with the Marie Curie Actions under 'Excellent science'. Institutions presenting innovative concepts for the rapid
implementation of ERA principles, including the European Charter for
Researchers and the Code of Conduct for the Recruitment of Researchers, will be supported.

As regard coordination of policies, a
facility for policy advice will be set up to make expert policy advice
available to national authorities when defining their National Reform
Programmes and research and innovation strategies.

To implement the Innovation Union
initiative, there is also a need to support (private and public) market-driven
innovation in view of enhancing the innovation capacity
of firms and fostering European competitiveness. This
will require improving the overall framework conditions for innovation as well
as tackling the specific barriers preventing the growth of innovative firms. Powerful innovation support mechanisms (for e.g. improved cluster management,
public-private partnerships and network cooperation), highly specialised
innovation support services (on e.g. IPR
management/exploitation, innovation management, networks of procurers) and
reviews of public policies in relation to innovation will
be supported. Issues specific to SMEs will be supported
under the specific objective 'Innovation in SMEs'.

6.2.2.     Exploring new forms of
innovation, including social innovation and creativity

Social innovation generates new goods, services, processes and models that meet societal
needs and create new social relationships. It is important to understand
how social innovation and creativity may lead to change in existing structures
and policies and how they can be encouraged and scaled-up. Grassroots on-line
and distributed platforms networking citizens and allowing them to collaborate
and co-create solutions based on an extended awareness of the social, political
and environmental context can be a powerful tool to support the objectives of
Europe 2020. Support will also be given to networking and experimentation of
the use of ICT for improving learning processes, as well as to networks of social
innovators and social
entrepreneurs.

It will be essential to promote innovation
in order to foster efficient, open and citizen-centric public services (eGovernment).
This will require multidisciplinary research on new technologies and
large-scale innovation related in particular to digital privacy, interoperability,
personalised electronic identification, open data, dynamic user interfaces,
citizen-centric public service configuration and integration and innovation
driven by users, including in social sciences and the humanities. Such actions
will also address social-network dynamics and crowd-sourcing and smart-sourcing
for co-production of solutions addressing social problems, based on open data
sets. They will help to manage complex decision-making, in particular the handling
and analysis of huge quantities of data for collaborative policy modelling, simulation
of decision-making, visualisation techniques, process modelling and participatory
systems as well as to analyse changing relationships between citizens and the
public sector.

6.2.3.     Ensuring societal
engagement in research and innovation.

Enabling all societal actors to interact in
the innovation cycle increases the quality, relevance, acceptability and
sustainability of innovation outcomes by integrating society's interests and
values. This requires developing specific skills, knowledge and capacities at
individual and organisational as well as at national and transnational levels. A
scientifically literate, responsible and creative society will be nurtured
through the promotion of and research on appropriate science education methods.
Gender equality will be promoted in particular by supporting changes in the
organisation of research institutions and in the content and design of research
activities. In order to improve knowledge circulation within the scientific
community and the wider public, the accessibility and use of the results of
publicly funded research will be further developed. An Ethics Framework for
research and innovation, based on the fundamental ethical principles including
those reflected in the Charter of Fundamental Rights and all the relevant Union
laws and Conventions, will be promoted in coordination with relevant
international organisations.

6.2.4.     Promoting coherent and
effective cooperation with third countries.

Horizontal activities will ensure the
strategic development of international cooperation across Horizon 2020 and
address cross-cutting policy objectives. Activities to support bilateral,
multilateral and bi-regional policy dialogues in research and innovation with
third countries, regions, international fora and organisations will facilitate
policy exchange, mutual learning and priority setting, promote reciprocal
access to programmes and monitor the impact of cooperation. Networking and
twinning activities will facilitate optimal partnering between research and
innovation actors on both sides and improve competencies and cooperation
capacity in less advanced third countries. Activities will promote coordination
of Union and national cooperation policies and programmes as well as joint
actions of Member States and Associated Countries with third countries in order
to enhance their overall impact. Finally, the European research and innovation
'presence' in third countries will be consolidated and strengthened, notably by
promoting the creation of European 'science and innovation houses', services to
European organisations extending their activities into third countries and the
opening of research centres established jointly with third countries to
organisations or researchers from other Member States and Associated Countries.

6.3.        Secure societies

The European Union, its citizens and its
international partners are confronted with a range of security threats like
crime, terrorism and mass emergencies due to man-made or natural disasters.
These threats can span across borders and aim at physical targets or the
cyberspace. Attacks against Internet sites of public authorities and private
entities for instance not only undermine the citizen's trust but may seriously
affect such essential sectors as energy, transport, health, finance or
telecommunications.

In order to anticipate, prevent and manage these
threats, it is necessary to develop and apply innovative technologies,
solutions, foresight tools and knowledge, stimulate cooperation between providers
and users, find civil security solutions, improve the competitiveness of the
European security, ICT and services industries and prevent and combat the abuse
of privacy and breaches of human rights in Internet.

The coordination and improvement of the
security research area will thus be an essential element and will help to map
present research efforts, including foresight, and improve relevant legal
conditions and procedures for coordination, including pre-normative activities.

Activities will follow a mission-oriented
approach and integrate the relevant societal dimensions. They will support the
Union's policies for internal and external security, defence policies, and the
relevant new provision of the Lisbon Treaty, and ensure cyber security, trust
and privacy in the Digital single Market. The following specific objectives
will be pursued:

6.3.1.     Fighting crime and
terrorism.

The ambition is both to avoid an incident
and to mitigate its potential consequences. This requires new technologies and
capabilities (including against cyber crime and cyber terrorism) for the
support to health, food, water and environmental security which are essential
for the good functioning of society and economy. New technologies and dedicated
capabilities will help to protect critical infrastructures, systems and
services (including communications, transport, health, food, water, energy,
logistic and supply chain, and environment). This will include analysing and
securing public and private critical networked infrastructures and services
against any type of threats.

6.3.2.     Strengthening security
through border management

Technologies and capabilities are also
required to enhance systems, equipments, tools, processes, and methods for
rapid identification to improve border security, including both control and
surveillance issues, while exploiting the full potential of EUROSUR. These will
be developed and tested considering their effectiveness, compliance with legal
and ethical principles, proportionality, social acceptability and the respect
of fundamental rights. Research will also support the improvement of the
integrated European border management, including through increased cooperation
with candidate, potential candidate and European Neighbourhood Policy
countries.

6.3.3.     Providing cyber security

Cyber security is a prerequisite for
people, business and public services in order to benefit from the opportunities
offered by the Internet. It requires providing security for systems, networks,
access devices, and software and services, including cloud computing, while taking
into account the interoperability of multiple technologies. Research will prevent,
detect and manage in real-time cyber-attacks across multiple domains and
jurisdictions, and to protect critical ICT infrastructures. The digital society
is in full development with constantly changing uses and abuses of the
Internet, new ways of social interaction, new mobile and location-based
services and the emergence of the Internet of Things. This requires a new type
of research which should be triggered by the emerging applications, usage and
societal trends. Nimble research initiatives will be undertaken including pro-active
R&D to react quickly to new contemporary developments in trust and
security.

6.3.4.     Increasing Europe's
resilience to crises and disasters

This requires the development of dedicated technologies
and capabilities to support different types of emergency management operations
(such as civil protection, fire fighting and marine pollution, humanitarian
aid, civil defence, conflict prevention, development of medical information
infrastructures rescue tasks and post-crisis-stabilisation) as well as law enforcement.
Research will cover the whole crisis management chain and societal resilience, and
support the establishment of a European emergency response capacity.

Activities across all mission areas will
also address the integration and interoperability of systems and services
including aspects such as communication, distributed architectures and human
factors. This also requires integrating civilian and military capabilities in
tasks ranging from civil protection to humanitarian relief, border management
or peace-keeping. This will include technological development in the sensitive
area of dual-use technologies to guarantee interoperability between civil
protection and military forces and amongst civil protection forces worldwide,
as well as reliability, organisational, legal and ethical aspects, trade
issues, protection of confidentiality and integrity of information and
traceability of all transactions and processing.

6.3.5.     Ensuring privacy and
freedom in the internet and enhancing the societal dimension of security

Safeguarding the human right of privacy in
the digital society will require the development of privacy-by-design
frameworks and technologies since the conception of products and services.
Technologies will be developed allowing users to control their personal data
and its use by third parties; as well as tools to detect and block illegal
content and data breaches and to protect human rights on-line preventing that
people's behaviours individually or in groups is limited by unlawful searching
and profiling.

Any new security solution and technology
needs to be acceptable to the society, comply with Union and international law,
be effective and proportionate in identifying and addressing the security
threat. Better understanding the socioeconomic, cultural, and anthropological
dimensions of security, the causes of insecurity, the role of media and communication
and the citizen's perceptions, are therefore essential. Ethical issues and
protection of human values and fundamental rights will be addressed.

6.3.6.     Specific implementation
aspects

Whereas research will have a civil security
orientation, coordination with the activities of the European Defence Agency
(EDA) will be actively pursued in order to strengthen cooperation with EDA,
notably through the already established European Framework Cooperation,
recognising that there are areas of dual use technology relevant for both civil
and military applications. Coordination mechanisms with relevant Union
Agencies, such as e.g. FRONTEX, EMSA and Europol, will also be further
strengthened in order to improve the coordination of Union Programmes and
policies in the field of both internal and external security, and of other
Union initiatives.

Taking into account the particular nature
of security, specific arrangements will be put in place with regards to
programming and governance, including arrangements with the Committee refered
to in Article 9 of this Decision. Classified or otherwise sensitive information
related to security will be protected and particular requirements and criteria
for international cooperation may be specified in work programmes. This will
also be reflected in the programming and governance arrangements for Secure
Societies (including the comitology aspects).

PART IV

Non-Nuclear Direct Actions of the Joint
Research Centre (JRC)

1.           Excellent
Science

The JRC will carry out research to enhance
the scientific evidence base for policy making, to promote understanding of
natural processes underlying societal challenges, and to examine emerging
fields of science and technology, including through an exploratory research
programme.

2.           Industrial Leadership

The JRC will contribute to innovation and
competitiveness through:

(a)
Continuing to contribute to the strategic
orientation and science agenda of relevant instruments of indirect research,
such as European Innovation Partnerships as well as public-private partnerships
and public-public partnerships.

(b)
Support to knowledge and technology transfer through
definition of appropriate Intellectual Property Rights frameworks for different
research and innovation instruments, and promotion of cooperation in knowledge
and technology transfer among large public research organisations.

(c)
Contributions to facilitating the use,
standardisation and validation of space technologies and data, in particular to
tackle the societal challenges.

3.           Societal Challenges

3.1.        Health, demographic change
and wellbeing

The JRC will contribute to harmonisation of
methods, standards, and practices in support of Union legislation targeting
health and consumer protection through:

(a)
Assessment of risks and opportunities of new
technologies and chemicals, including nanomaterials, in food, feed and consumer
products; development and validation of harmonised measurement, identification
and quantification methods, integrated testing strategies and state-of-the-art
tools for toxicological hazard assessment, including alternative methods to
animal testing; assessment of health effects of environmental pollution.

(b)
Development and quality assurance of health
testing and screening practices including genetic testing and cancer screening.

3.2.        Food security, sustainable
agriculture, marine and maritime research and the bio-economy

The JRC will support the development,
implementation and monitoring of European agriculture and fisheries policies,
including food security and development of the bio-economy through:

(a)
Establishment of a global system and tools for
crop forecasting and monitoring of crop productivity; support to improve short-
to mid-term outlooks of agricultural commodities, including the predicted
effects of climate change

(b)
Contribution to biotechnological innovation and
improved resource efficiency to produce ‘more with less’ through
techno-economic analyses and modelling.

(c)
Scenario modelling for decision-making in
agricultural policies and analyses of policy impact at macro/regional/micro
levels; analysis of the impact of the "CAP towards 2020" on
developing/emerging economies.

(d)
Further development of methods for fisheries
control and enforcement and traceability of fish and fish products; development
of robust ecosystem health indicators and bio-economic modelling to better
understand the direct effects (e.g. fishing) and indirect effects (climate change)
of human activities on the fish stock dynamics, the marine environment, and
their socio-economic impact.

3.3.        Secure, clean and efficient
energy

The JRC will focus on the 20/20/20 climate
and energy targets and the Union's transition to a competitive low-carbon
economy by 2050 with research on technological and socio-economic aspects of:

(a)
Security of energy supply, in particular as
regards links and interdependencies with the extra-European energy supply and
transmission systems; mapping indigenous primary and external energy sources
and infrastructures on which Europe depends.

(b)
Energy/electricity transmission networks, in
particular modelling and simulation of trans-European energy networks, analysis
of smart/super grid technologies, and real-time simulation of power systems.

(c)
Energy efficiency, in particular methodologies
for monitoring and assessing the achievements of energy efficiency policy
instruments, techno-economic analysis of the use of energy-efficient
technologies and instruments and of smart grids.

(d)
Low-carbon technologies (including safety of
nuclear energy in the Euratom programme), in particular performance assessment
and pre-normative research of prospective low-carbon technologies; analysis and
modelling of drivers and barriers of their development and deployment;
assessment of renewable resources and bottlenecks, such as critical raw
materials, in the supply chain of low-carbon technologies; continuous
development of the Strategic Energy Technology Plan Information System (SETIS)
and related activities.

3.4.        Smart, green and integrated
transport

The JRC will support the 2050 goals of a
competitive, smart, resource efficient and integrated transport system for safe
and secure transport of people and goods through laboratory studies, modelling and
monitoring approaches on:

(a)
Strategic low-carbon transport technologies for all
transport modes, including road transport electrification and alternative
fuelled aircrafts/vessels/vehicles, and further development of a Commission
internal clearing house for collecting and disseminating information on
relevant technologies; availability and costs of non-fossil based fuels and
energy sources, including impacts of electrified road transport on electricity
grids and electricity generation.

(b)
Clean and efficient vehicles, in particular definition
of harmonised test procedures and assessment of innovative technologies in
terms of emissions, conventional and alternative fuel efficiency and safety; developing
improved methodologies for emission measurements and environmental pressures
calculations; coordinating and harmonizing emissions inventorying and
monitoring activities at European level.

(c)
Smart mobility systems to achieve secure,
intelligent and integrated mobility, including techno-economic assessment of
new transport systems and components, applications for improved traffic
management and contribution to the design of an integrated approach to
transport demand and management.

(d)
Integrated transport safety, in particular
provision of tools and services for collecting, sharing and analysing incidents
and accidents information in the aviation, maritime and land transport sectors;
enhance accidents prevention through analysis and cross modal safety lessons
while contributing to cost savings and efficiency gains.

3.5.        Climate action, resource efficiency
and raw materials

The JRC will contribute to the greening of
Europe, security of resource supply and a global sustainable management of
natural resources through:

(a)
Enabling access to interoperable environmental
data and information through the further development of standards and
interoperability arrangements, geo-spatial tools and innovative information
communication technology infrastructures such as the Infrastructure for Spatial
Information in the European Union (INSPIRE), and other Union and global
initiatives.

(b)
Measuring and monitoring key environmental
variables and assessing the state and change of natural resources by further
developing indicators and information systems contributing to environmental
infrastructures. Assessing ecosystem services including their valuation and
climate change effects.

(c)
Developing an integrated modelling framework for
sustainability assessment based on thematic models such as soil, land use,
water, air quality, greenhouse gas emissions, forestry, agriculture, energy and
transport, also addressing effects of and responses to climate change.

(d)
Supporting Union development policy goals by
promoting technology transfer, monitoring of essential resources (such as
forests, soils, food supply), and research to limit impacts of climate change
and environmental impacts of resource use, and to resolve trade-offs in the
competition for land to produce food or energy with land for e.g. biodiversity.

(e)
Integrated assessment related to sustainable
production and consumption policies, including security of supply of strategic
raw materials, resource efficiency, low carbon and clean production processes
and technologies, products and services development, consumption patterns and
trade. Further development and integration in policy analyses of Life Cycle
Assessment.

(f)
Integrated impact analysis of options for
climate change mitigation and/or adaptation based on the development of a
quantitative tool set of models at regional and global scale, ranging from the sectoral
to the macro-economic level.

3.6.        Inclusive, innovative and secure
societies

The JRC will contribute to the goals of the
Innovation Union, Security and Citizenship and Global Europe through the
following activities:

(a)
Comprehensive analyses of drivers and barriers
of research and innovation and development of a modelling platform for the
assessment of their micro- and macro-economic impacts.

(b)
Contributions to the monitoring of the
implementation of the Innovation Union via scoreboards, development of
indicators etc. and operation of a public information and intelligence system
to host relevant data and information.

(c)
Operation of a public information and
intelligence platform for assisting national and regional authorities with
smart specialisation; quantitative economic analysis of the spatial pattern of
economic activity, in particular addressing economic, social and territorial
disparities and changes in the pattern in response to technological
developments.

(d)
Econometrics and macro-economic analysis of the
reform of the financial system to contribute to maintain an efficient Union
framework for financial crisis management; continuing to provide methodological
support for monitoring of Member State budget positions in relation to the
Stability and Growth Pact.

(e)
Monitor the functioning of the European Research
Area (ERA) and analysing drivers of and barriers to some of its key elements
(such as mobility of researchers, opening up of national research programmes)
and proposing relevant policy options; continue to play an important role in
the ERA through networking, training, opening its facilities and databases to
users in Member States and Candidate and Associated Countries.

(f)
Develop quantitative economic analysis of the
Digital Economy; carry out research on the impact of information and
communication technologies on the goals of the Digital Society; study the
impact of sensitive security issues on the lives of individuals (Digital
Living).

(g)
Focus on identification and assessment of the
vulnerability of critical infrastructures (including global navigation systems,
financial markets); improvement of tools for fighting fraud against the Union
budget and for maritime surveillance; as well as operational performance
assessment of technologies for or affecting personal identity (digital
identity).

(h)
Enhance the Union's capacity for disaster risk
reduction and management of natural and man-made disasters notably through the development
of global multi-hazard early warning and risk management information systems, making
use of Earth Observation technologies.

(i)
Continue to provide tools for the assessment and
management of global security challenges such as terrorism and
non-proliferation (chemical, biological, radiological and nuclear (in the
Euratom programme)), threats arising from socio-political instability and
communicable diseases. New areas to be addressed include vulnerability and
resilience to emerging or hybrid threats, e.g. accessibility to raw materials,
piracy, resource scarcity/competition and effects of climate change on
occurrence of natural disasters.

4.           Specific implementation aspects

In line with the priorities of Global
Europe, the JRC will strengthen scientific cooperation with key international
organisations and third countries (e.g. UN bodies, OECD, United States of America,
Japan, Russia, China, Brazil, India) in areas having a strong global dimension
such as climate change, food security, or nanotechnologies.

In order to provide an enhanced service to
policy-making, the JRC will further develop its capacity to analyse and provide
cross-sectoral policy options and to carry out related impact assessments. This
capacity will be supported in particular through strengthening of:

(a)
Modelling in key areas (e.g., energy and
transport, agriculture, climate, environment, economics). The focus will be on
both sectoral and integrated models (for sustainability assessments), and cover
scientific-technical as well as economic aspects.

(b)
Forward-looking studies which will provide
analyses of trends and events in science, technology and society and on how
these may affect public policies, influence innovation, reinforce
competitiveness and sustainable growth. This would enable the JRC to draw
attention to issues that may require future policy intervention and to anticipate
customers' needs.

The JRC will strengthen its support to the
standardisation process and standards as a horizontal component in support of
European competitiveness. Activities will include pre-normative research,
development of reference materials and measurements, and harmonization of
methodologies. Five focal areas have been identified (energy; transport;
Digital Agenda; security and safety (including nuclear in the Euratom
programme); consumer protection). Moreover, the JRC will continue to promote
dissemination of its results and provide support on the management of
Intellectual Property Rights to Union institutions and bodies.

The JRC will establish a capacity in
behavioural sciences to support the development of more effective regulation,
complementing JRC activities in selected fields such as nutrition, energy
efficiency and product policies.

Socio-economic research will be part of
activities in relevant areas such as Digital Agenda, sustainable production and
consumption or public health.

In order to fulfil its mission as reference
centre for the Union, to continue to play a vital role in the ERA, and to enter
into new fields of research, it is essential that the JRC disposes of
state-of-the-art infrastructure. The JRC will continue its renovation and
refurbishment programme to ensure compliance with applicable environmental and
safety and security regulations, and will invest into scientific infrastructure,
including the development of modelling platforms, facilities for new areas such
as genetic testing etc. Such investments will be done in close coordination
with the roadmap of the European Strategy Forum of Research Infrastructures
(ESFRI) and take into account existing facilities in the Member States.

Annex II
Performance indicators

The following table specifies for the
specific objectives of Horizon 2020 a limited number of key indicators for
assessing results and impacts.

1.           Part I. Priority 'Excellent
Science'

Specific objectives:

·
European Research Council

–
Share of publications from ERC funded projects
which are among the top 1 % highly cited

–
Number of institutional policy and
national/regional policy measures inspired by ERC funding

·
Future and Emerging Technologies

–
Publications in peer-reviewed high impact
journals

–
Patent applications in Future and Emerging
Technologies

·
Marie Curie actions on skills, training and
career development

–
Cross-sector and cross-country circulation of researchers,
including PhD candidates

·
European research infrastructures (including
eInfrastructures)

–
Research infrastructures which are made
accessible to all researchers in Europe and beyond through Union support

2.           Part II. Priority 'Industrial leadership'

Specific objectives:

·
Leadership in enabling and industrial
technologies (ICT, Nanotechnologies, Advanced Materials,
Biotechnologies, Advanced manufacturing and Space)

–
Patent applications obtained in the different
enabling and industrial technologies

·
Access to risk finance

–
Total investments mobilised via debt financing
and Venture Capital investments

·
Innovation in SMEs

–
Share of participating SMEs introducing
innovations new to the company or the market (covering the period of the
project plus three years)

3.           Part III. Priority 'Societal challenges'

Specific objectives:

For each of the
challenges, progress shall be assessed against the contribution to the
following specific objectives which are detailed in Annex I of Horizon 2020 together with descriptions of the substantive advancement needed
for the achievement of the challenges and policy relevant indicators:

–
Improve the lifelong health and wellbeing of all

–
Secure sufficient supplies of safe and high
quality food and other bio-based products, by developing productive and
resource-efficient primary production systems, fostering ecosystem services,
along side competitive and low carbon supply chains.

–
Make the transition to a reliable, sustainable
and competitive energy system, in the face of increasingly scarce resources,
increasing energy needs and climate change.

–
Achieve a European transport system that is resource-efficient,
environmentally-friendly, safe and seamless for the benefit of citizens, the
economy and society

–
Achieve a resource efficient and climate change resilient
economy and a sustainable supply of raw materials, in order to meet the needs
of a growing global population within the sustainable limits of the planet's
natural resources.

–
Foster inclusive, innovative and secure European
societies in a context of unprecedented transformations and growing global
interdependencies.

Additional performance indicators are:

Publications in peer-reviewed high impact
journals in the area of the different Societal Challenges

–
Patent applications in the area of the different
Societal Challenges

–
Number of Union pieces of legislation referring
to activities supported in the area of the different Societal Challenges

4.           Part IV. Non-nuclear direct actions of
the Joint Research Centre

Specific objectives:

·
Provide customer-driven scientific and
technical support to Union policies

–
Number of occurrences of tangible specific
impacts on European policies resulting from technical and scientific support
provided by the Joint Research Centre

–
Number of peer reviewed publications

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of
estimated impact on expenditure

3.2.2. Estimated impact
on operational appropriations

3.2.3. Estimated impact
on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.
FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1.
Title of the proposal/initiative

The Specific Programme implementing Horizon 2020 – The Framework
Programme for Research and Innovation (2014-2020)

1.2.
Policy area(s) concerned in the ABM/ABB
structure[29]

- 08 - Research and Innovation

- 09 - Information Society and Media

- 02 - Enterprise and Industry

- 05 - Agriculture

- 32 - Energy

- 06 - Mobility and Transport

- 15 - Education and Culture

- 07 - Environment and climate action

- 10 - Joint Research Centre

1.3.
Nature of the proposal/initiative

ý The
proposal/initiative relates to a new action

 ̈ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[30]

 ̈ The proposal/initiative relates to the
extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.4.
Objectives
1.4.1.
The Commission's multiannual strategic
objective(s) targeted by the proposal/initiative

The Specific Programme implementing Horizon 2020 – The Framework
Programme for Research and Innovation (2014-2020) (‘SP’) is pursuing the
general objective of Horizon 2020 – The Framework Programme for Research and
Innovation (2014-2020) (‘Horizon 2020’), which is to contribute to the Europe
2020 strategy, including the completion of the European Research Area, by
stimulating smart, sustainable and inclusive growth:

- Smart growth – develop an economy based on knowledge and
innovation (implementing the Innovation Union flagship initiative).

- Sustainable growth – promote a more resource efficient, greener
and more competitive economy.

- Inclusive growth – foster a high-employment economy delivering
economic, social and territorial cohesion.

1.4.2.
Specific objective(s) and ABM/ABB activity(ies)
concerned

- Part I: Priority 'Excellent Science'

- Part II: Priority 'Industrial Leadership'

- Part III: Priority 'Societal Challenges'

- Part IV: Non-nuclear direct actions of the Joint Research Centre

ABM/ABB activity(ies) concerned

- 08 - Research and Innovation

- 09 - Information Society and Media

- 02 - Enterprise and Industry

- 05 - Agriculture

- 32 - Energy

- 06 - Mobility and Transport

- 15 - Education and Culture

- 07 - Environment and climate action

- 10 - Joint Research Centre

1.4.3.
Expected result(s) and impact

Specify the
effects which the proposal/initiative should have on the beneficiaries/groups
targeted.

The SP will cover the most substantial part of the Horizon 2020. It
is estimated that by 2030 Horizon 2020 is expected to generate an extra 0.92
per cent of GDP, 1.37 per cent of exports, -0.15 per cent of imports, and 0.40
per cent of employment.

For more information, please read the Commission Staff Working Paper
on the impact assessment of Horizon 2020 (‘IA’) accompanying this legislative
proposal.

1.4.4.
Indicators of results and impact

Specify the
indicators for monitoring implementation of the proposal/initiative.

The following table specifies for the general and specific
objectives of the SP a limited number of key indicators for assessing results
and impacts.

Additional – including newly developed – indicators will be used to
capture the various types of results and impacts for the different specific
activities.

General objective:

Contribute to the objectives of the Europe 2020 strategy and to the
completion of the European Research Area

- The Europe 2020 R&D target (3 % of GDP)

Current:          2.01 % of GDP (EU-27, 2009)

Target            3 % of GDP (2020)

- The Europe 2020 innovation headline indicator

Current:          New approach

Target:           Substantial weight of fast-growing innovative
enterprises in the economy

Part I: Priority 'Excellent Science'

Specific Objectives

- European Research Council

- Share of publications from ERC funded projects which are among the
top 1 % highly cited

Current:          0.8 % (EU publications from 2004 to 2006, cited
until 2008)

Target:           1.6 % (ERC publications 2014 - 2020)

- Number of institutional policy and national/regional policy measures
inspired by ERC funding

Current:          20 (estimate 2007 – 2013)

Target:           100 (2014 – 2020)

- Future and Emerging Technologies

- Publications in peer-reviewed high impact journals

Current:          New approach

Target:           25 publications per 10 Million
€ funding (2014 - 2020)

- Patent applications in Future and Emerging Technologies

Current:          New approach

Target:           1 patent application per 10 Million € funding
(2014 – 2020)

- Marie Curie actions on skills, training and career development

- Cross-sector and cross-country circulation of researchers,
including PhD candidates

Current:          50.000, around 20 % PhD candidates (2007 - 2013)

Target:           65.000, around 40 % PhD candidates (2014 - 2020)

- European research infrastructures (including eInfrastructures)

- Research
infrastructures which are made accessible to all researchers in Europe and
beyond through Union support

Current:          650 (2012)

Target:           1000(2020)

Part II: Priority 'Industrial Leadership'

Specific Objectives

- Leadership in enabling and industrial technologies (ICT, Nanotechnologies, Advanced Materials, Biotechnologies,
Advanced manufacturing and Space)

- Patent applications obtained in the different enabling and
industrial technologies

Current:          New approach

Target:           3 patent applications per 10 Million € funding
(2014 – 2020)

- Access to risk finance

- Total investments mobilised via debt financing and Venture Capital
investments

Current:          New approach

Target:           EUR 100 million total investment per EUR 10
million Union contribution (2014 - 2020)

- Innovation in SMEs

- Share of participating SMEs introducing innovations new to the
company or the market (covering the period of the project plus three years)

Current:          New approach

Target:           50 %

Part III: Priority 'Societal Challenges'

Specific Objectives

For each of the challenges, progress shall be assessed against the
contribution to the following specific objectives which are detailed in Annex I
of Horizon 2020 together with descriptions of the substantive advancement
needed for the achievement of the challenges and policy relevant indicators:

- Improve the lifelong health and wellbeing of all.

- Secure sufficient supplies of safe and high quality food and other
bio-based products, by developing productive and resource-efficient primary
production systems, fostering ecosystem services, along side competitive and
low carbon supply chains.

- Make the transition to a reliable, sustainable and competitive
energy system, in the face of increasingly scarce resources, increasing energy
needs and climate change.

- Achieve a European transport system that is resource-efficient,
environmentally-friendly, safe and seamless for the benefit of citizens, the
economy and society.

- Achieve a resource efficient and climate change resilient economy
and a sustainable supply of raw materials, in order to meet the needs of a
growing global population within the sustainable limits of the planet's natural
resources.

- Foster inclusive, innovative and secure European societies in a
context of unprecedented transformations and growing global interdependencies.

Additional performance indicators are:

- Publications in peer-reviewed high impact journals in the area of
the different Societal Challenges

Current:          New approach (For FP7(2007-2010), 8149
publications in total - preliminary figure)

Target:           On average, 20 publications per 10 Million €
funding (2014 – 2020)

- Patent applications in the area of the different Societal
Challenges

Current:          153 (FP7 Cooperation Programme 2007-10,
preliminary figures)

Target:           On average, 2 patent applications per 10 Million €
funding (2014 – 2020)

- Number of Union pieces of legislation referring to activities
supported in the area of the different Societal Challenges

Current:          New approach

Target:           On average, 1 per 10 Million € funding (2014 -
2020)

Part IV: Non-nuclear direct actions of the Joint Research Centre

Provide customer-driven scientific and technical support to Union policies

- Number of occurrences of tangible specific impacts on European
policies resulting from technical and scientific policy support provided by the
Joint Research Centre

Current:          175 (2010)

Target:           230 (2020)

- Number of peer reviewed publications

Current:          430 (2010)

Target:           500 (2020)

1.5.
Grounds for the proposal/initiative
1.5.1.
Requirement(s) to be met in the short or long
term

-Improve the contribution of research and innovation to the
resolution of key societal challenges.

-Boost Europe’s industrial competitiveness through promoting
technological leadership and getting good ideas to market.

-Strengthen Europe’s science base.

-Achieve the European Research Area and increase its effectiveness
(cross-cutting objectives).

-For more information, please read the Commission Staff Working
Paper on the impact assessment of Horizon 2020 (‘IA’) accompanying this
legislative proposal.

1.5.2.
Added value of EU involvement

There is a clear case for public intervention to tackle the problems
outlined in 1.5.1 above. Markets alone will not deliver European leadership in
the new techno-economic paradigm. Large-scale public intervention through both
supply and demand measures will be needed to overcome the market failures
associated with systemic shifts in basic technologies.

However, Member States acting alone will not be able to make the
required public intervention. Their investment in research and innovation is
comparatively low, is fragmented and suffers from inefficiencies - a crucial
obstacle when it comes to technological paradigm shifts. It is difficult for
Member States on their own to accelerate technology development over a
sufficiently broad portfolio of technologies, or to tackle the lack of transnational
coordination.

As highlighted in the proposal for the next Multi-annual Financial
Framework, the Union is well positioned to add value by delivering the
large-scale investment in "blue sky" frontier research, in targeted
applied R&D, and in the associated education, training and infrastructures
which will help to strengthen our performance in thematically focused R&D
and enabling technologies; by supporting companies' efforts to exploit research
results and to turn them into marketable products, processes and services; and
by stimulating the uptake of these innovations. A series of cross-border
actions - concerning the coordination of national research funding, Union-wide
competition for research funding, researcher mobility and training, coordination
of research infrastructures, transnational collaborative research and
innovation, and innovation support - are most efficiently and effectively
organised at European level. Ex-post evaluation evidence has convincingly
demonstrated that Union research and innovation programmes support research and
other activities that are of great strategic importance for participants, and
that in the absence of Union support would simply not take place. In other
words, there are no substitutes for Union level support.

Evidence also demonstrates the European added value of policy
support actions, which derives from bringing together knowledge and experience
from different contexts, supporting cross-country comparisons of innovation
policy tools and experiences, and providing the opportunity to identify,
promote and test best practices from over the widest possible area.

The direct actions of the Joint Research Centre (‘JRC’) provide
European added value because of their unique European dimension. These benefits
range from responding to Commission’s need to have in-house access to
scientific evidence independent of national and private interests to direct
benefits to the Union citizens through contributions to policies which lead to
improved economic, environmental and social conditions.

For more information, please read the Commission Staff Working Paper
on the impact assessment of Horizon 2020 (‘IA’) accompanying this legislative
proposal.

1.5.3.
Lessons learned from similar experiences in the
past

The programme builds on the experience accumulated from past
Framework Programmes for Research and Technological Demonstration (FP), the
Competitiveness and Innovation Programme (CIP), and the European Institute of
Technology and Innovation (EIT).

Over a period spanning several decades, Union programmes have:

- succeeded in involving Europe's best researchers and institutes,

- produced large-scale structuring effects, scientific,
technological and innovation impacts, micro-economic benefits, and downstream
macro-economic, social and environmental impacts for all Member States.

Together with the success, there are important lessons to be learned
from the past:

- Research, innovation and education should be addressed in a more
coordinated manner;

- Research results better disseminated and valorised into new
products, processes and services;

- The intervention logic should be more focused, concrete, detailed
and transparent;

- Programme access should be improved and participation increased
from start-ups, SMEs, industry, less performing Member States and extra-Union
countries;

- Monitoring and evaluation of the programme need to be
strengthened.

The recommendations for direct actions in recent evaluation reports
note i.a. that the JRC can

- promote stronger integration in the production of knowledge in the
Union;

- introduce impact analyses and cost-benefit studies of specific
work;

- enhance cooperation with industry in order to strengthen effects
for the benefit of the competitiveness of the European economy.

For more information, please read the Commission Staff Working Paper
on the impact assessment of Horizon 2020 (‘IA’) accompanying this legislative
proposal.

1.5.4.
Coherence and possible synergy with other
relevant instruments

In the context of the achievement of the Europe 2020 objectives,
synergies will be established and developed with the other Union programmes
like the Common Strategic Framework for Economic, Social and Territorial
Cohesion and with the Competitiveness and SMEs Programme.

1.6.
Duration and financial impact

ý Proposal/initiative of limited
duration

–
ý  Proposal/initiative in effect from 01/01/2014 to 31/12/2020

–
ý  Financial impact from 2014 to 2026

 ̈ Proposal/initiative of unlimited
duration

–
Implementation with a start-up period from YYYY
to YYYY,

–
followed by full-scale operation.

1.7.
Management mode(s) envisaged[31]

ý Centralised direct management by the Commission

ý Centralised indirect management with the delegation of implementation tasks to:

–
ý  executive agencies

–
ý  bodies set up by the Communities[32]

–
ý  national public-sector bodies/bodies with public-service mission

–
 ̈  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

 ̈ Shared management with the Member States

 ̈ Decentralised management with third countries

ý Joint management with international organisations, including the European Space
Agency

If more than one
management mode is indicated, please provide details in the
"Comments" section.

Comments

The Commission intends to use a variety of management modes to
implement this activity building on the management modes used under the current
financial perspectives. These management modes include centralised management
and joint management.

Management will be through the services of the Commission, through
the existing Executive Agencies of the Commission renewing and extending their
mandates in a balanced manner and through other externalised bodies such as
entities created under Articles 187 (e.g. Joint Undertakings with renewed mandates
after assessment and new ones to be set up in the context of implementing e.g.
the 'Societal Challenges' part), 185 (programmes undertaken jointly by several
member states, where national public-sector bodies/bodies with public-service
mission will play a role) of the Lisbon Treaty as well as through financial
instruments.

Activities already externalised under the current financial
perspective (e.g. Frontier Research, Marie Curie Actions, SME actions), which
will be continued under this SP, will be implemented keeping the current form
of externalisation. This may entail deepening the specialisation and
simplifying management of the respective externalised bodies and brining them
to a comparable operational size.

Externalisation of further activities of the SP, in particular
through recourse to existing Executive Agencies of the Commission, is foreseen
as long as it is compatible with keeping core policy competences within
Commission services. The externalisation means retained to implement these
activities will be selected on the basis of their proven effectiveness and
efficiency. At the same time, the staff assigned to the Executive Agencies of
the Commission will have to increase in proportion to the part of the budget corresponding
to the externalised activities and taking into account the commitment on
staffing made by the Commission (A Budget for Europe 2020 COM(2011) 500).

Where higher leverages can be achieved, the European Space Agency
may be involved in the implementation of space-related activities of Horizon
2020.

2.
MANAGEMENT MEASURES

Simplification

The SP must attract the most excellent researchers and the most
innovative European enterprises. This can only be reached by a programme with
the least possible administrative burden for participants and by appropriate
funding conditions. Simplification in the SP will therefore target three
overarching goals: to reduce the administrative costs of the participants;
to accelerate all processes of proposal and grant management and to decrease
the financial error rate. Moreover, simplification of research and innovation
funding will also result from the revision of the Financial Regulation (e.g. no
interest bearing accounts for pre-financing, eligible VAT, limitation of
extrapolation of systematic errors).

Simplification in the SP will be achieved along several dimensions.

Structural simplification is provided
through

- Integration of Union research and innovation related funding
instruments into this SP;

- This single Specific Programme implementing Horizon 2020;

- One single set of participation rules covering all components of
Horizon 2020.

Major simplification of funding rules will make the
preparation of proposals and the management of projects easier. At the same
time, they will reduce the number of financial errors. The following approach
is proposed:

Main funding model for grants:

- Simplified reimbursement of real direct costs, with a broader
acceptance of beneficiaries’ usual accounting, including the eligibility of
certain taxes and charges;

- The possibility of using unit personnel costs (average personnel
costs) for beneficiaries for which this is their usual accounting method, and
for SME owners without a salary;

- Simplification of time-recording by providing a clear and simple
set of minimum conditions, in particular abolition of time-recording
obligations for staff working exclusively on a Union project;

- One single reimbursement rate for all participants instead of 3
different rates by type of participant;

- One single flat rate covering indirect costs, instead of 4 methods
to calculate indirect costs, as a general rule;

- Continuation of the system of unit costs and flat rates for
mobility and training actions (Marie Curie);

- Output-based funding with lump sums for whole projects in specific
areas.

A revised control strategy, as described in section 2.2.2, achieving
a new balance between trust and control will
further reduce the administrative burden for participants.

Beyond the simpler rules and controls, all procedures and
processes for project implementation will be rationalised. This includes
the detailed provisions on the content and shape of proposals, the processes
for turning proposals into projects, the requirements for reporting and
monitoring, as well as the related guidance documents and support services. A
major contribution to reduced administrative costs for participation will come
from a single user-friendly IT platform, based on the Union’s Seventh Framework
Programme for R&D (2007-2013) (‘FP7’) Participant Portal.

2.1.
Monitoring and reporting rules

Specify
frequency and conditions.

A new system will be developed for the evaluation and monitoring of
the indirect actions of the SP. It will be based on a comprehensive, well-timed
and harmonised strategy, with a strong focus on throughput, output, results and
impacts. It will be supported by an appropriate data archive, experts, a
dedicated research activity, and increased cooperation with Member States and
Associated States, and it will be valorised through appropriate dissemination
and reporting. For direct actions, the JRC will continue to improve its
monitoring by further adjusting its indicators measuring output and impact.

The system will include information concerning cross-cutting topics
such as sustainability and climate change. Climate related expenditure will be
calculated in accordance with the tracking system based on Rio markers.

2.2.
Management and control system

A 2 % error limit was adopted as chief indicator in the area of
legality and regularity concerning the area of research grants. However, this
has caused a number of unexpected or undesirable side-effects. There has been a
strong feeling, amongst the beneficiaries as well as amongst the legislative authority,
that the control burden has become too great. This runs the risk of lowering
the attractiveness of the Union's Research programme, and so negatively
affecting Union research and innovation.

The European Council of February 4th 2011 concluded that ‘it is
crucial that EU instruments aimed at fostering R&D&I be simplified in
order to facilitate their take-up by the best scientists and the most
innovative companies, in particular by agreeing between the relevant
institutions a new balance between trust and control and between risk taking
and risk avoidance’ (see EUCO 2/1/11 REV1, Brussels 8 March 2011).

The European Parliament, in its Resolution of 11 November 2010
(P7_TA(2010)0401) on simplifying the implementation of the Research Framework
Programmes explicitly supports a higher risk of errors for research funding and
"expresses its concern that the current system and the practice of FP7
management are excessively control-oriented, thus leading to waste of
resources, lower participation and less attractive research landscapes; notes
with concern that the current management system of ‘zero risk tolerance’ seems
to avoid, rather than to manage, risks".

The sharp increase in the number of audits and the subsequent
extrapolation of results has also provoked a wave of complaints from the world
of research (e.g. the Trust Researchers initiative[33], with over 13,800 signatures
so far).

There is therefore an acceptance among stakeholders and Institutions
that the current approach needs to be reviewed. There are other objectives and
interests, especially the success of the Research policy, international
competitiveness and scientific excellence, which should also be considered. At
the same time, there is a clear need to manage the budget in an efficient and
effective manner, and to prevent fraud and waste. These are the challenges for
the SP.

It remains the ultimate objective of the Commission to achieve a
residual error rate of less than 2% of total expenditure over the lifetime of
the programme, and to that end, it has introduced a number of simplification
measures. However, other objectives such as the attractiveness and the success
of the EU research policy, international competitiveness, scientific excellent
and in particular the costs of controls (see point 2.2.2) need to be
considered.

Taking these elements in balance, it is proposed that the
Directorates General charged with the implementation of the research and
innovation budget will establish a cost-effective internal control system that
will give reasonable assurance that the risk of error over the course of the
multiannual expenditure period is, on an annual basis, within a range of 2-5 %,
with the ultimate aim to achieve a residual level of error as close as possible
to 2 % at the closure of the multi-annual programmes, once the financial impact
of all audits, correction and recovery measures have been taken into account.

2.2.1.     Internal control framework

The internal control framework for grants is built on:

- the implementation of the Commission's Internal Control Standards;

- procedures for selecting the best projects and translating them
into legal instruments;

- project and contract management throughout the lifetime of every
project;

- ex-ante checks on 100% of claims, including receipt of audit certificates
and ex-ante certification of cost methodologies;

- ex post audits on a sample of claims;

- and scientific evaluation of project results.

For direct actions, financial circuits include ex-ante checks for
procurement and ex-post controls. Risks are assessed annually and progress in
the execution of work and the consumption of resources is monitored regularly,
based on defined objectives and indicators.

2.2.2.     Costs and benefits of the
controls

The cost of the internal control system for the Directorates General
charged with the implementation of the research and innovation budget is
estimated at €267m per year (based on the 2009 Tolerable Risk of Error
exercise). It has also led to a considerable burden on beneficiaries and
Commission services.

43 % of the total costs of control of the Commission services (not
including the costs of the beneficiary) are borne at the stage of project
management, 18 % on selection of proposals, and 16 % on negotiation of
contracts (16 %). Ex post audits and their resulting implementation amounted to
23 % (€61m) of the total.

However, this considerable control effort has not managed to fully
achieve its objective. The estimated "residual" error rate for FP6,
after taking account of all recoveries and corrections that have been or will
be implemented, remains over 2 %. The current rate of error from audits of FP7 carried
out by the Directorate General Research and Innovation is around 5 %, and
although this will be reduced due to the effects of the audits, and is somewhat
biased because it is concentrated on beneficiaries not previously audited, it
is unlikely whether the 2 % residual error will be attained. The rate of error
identified by the European Court of Auditors is in a similar range.

2.2.3.     Expected level of risk of
non-compliance

The starting point is the status quo, based on audits carried out in
FP7 so far. This preliminary representative error rate is close to 5 % (for the
Directorate General Research and Innovation). The majority of errors detected
arise because the present system of research funding is based on the
reimbursement of the actual costs of the research project declared by the
participant. This leads to considerable complexity regarding the assessment of
eligible costs.

An analysis of error rates has been carried out for the FP7 audits
so far performed in the Directorate General Research and Innovation shows that:

- Around 27% by number, and 35% by amount, relate to errors in the
charging of personnel costs. Regular problems identified are charging average
or budgeted costs (rather than actual costs), failure to keep adequate records
of time spent on the programme, charging of ineligible items.

- Around 40% by number, and 37% by value, relate to other direct
costs (not personnel). Regular errors identified are the inclusion of VAT, lack
of a clear link to the project, failure to provide invoices or proof of payment
and incorrect calculation of depreciation charging the full cost of equipment
rather than the depreciated amount, subcontracting without prior authorization,
or without respecting the rules of value for money, etc.

- Around 33% by number, and 28% by amount, relate to errors in
indirect costs. The same risks apply as for personnel costs, with the
additional risk of an inaccurate or unfair allocation of overheads to Union
projects.

In a number of cases the indirect costs are a flat rate percentage
of direct costs, and so the error in indirect costs is proportional to the
error in direct costs.

Horizon 2020 introduces a significant number of important
simplification measures (see point 2 above) applicable to this SP that will
lower the error rate in all the categories of error. However, the consultation
of stakeholders and the institutions on further simplification, and the Horizon
2020 impact assessment, clearly indicate that the continuation of a funding
model based on the reimbursement of actual costs is the favoured option. A
systematic resort to output based funding, flat rates or lump sums appears
premature at this stage as such a system has not been tested in previous
programmes. Retaining a system based on the reimbursement of actual costs does
however mean that errors will continue to occur.

An analysis of errors identified during audits of FP7 suggests that
around 25-35% of them would be avoided by the simplification measures proposed.
The error rate can then be expected to fall by 1.5%, i.e. from close to 5% to
around 3.5%, a figure that is referred to in the Commission Communication
striking the right balance between the administrative costs of control and the
risk of error.

The Commission considers therefore that, for research spending under
Horizon 2020, a risk of error, on an annual basis, within a range between 2-5 %
is a realistic objective taking into account the costs of controls, the
simplification measures proposed to reduce the complexity of rules and the
related inherent risk associated to the reimbursement of costs of the research
project. The ultimate aim for the residual level of error at the closure of the
programmes after the financial impact of all audits, correction and recovery
measures will have been taken into account is to achieve a level as close as
possible to 2 %.

The ex-post audit strategy for expenditure under Horizon 2020 takes
account of this target. It will be based on the financial audit of a single
representative sample of expenditure across the whole programme, complemented
by a sample compiled on the basis of risk considerations.

The overall number of ex-post audits will be limited to that
strictly necessary to the achievement of this target and the strategy. The
governance of the ex-post audit activities will ensure that the audit burden on
participants is minimized. As a guide, the Commission considers that a maximum
of 7% of participants in Horizon 2020 would be subject to audit over the whole
programming period. Past experience shows that the expenditure subject to audit
would be considerably higher.

The ex-post audit strategy regarding legality and regularity will be
complemented by reinforced scientific evaluation and the anti-fraud strategy
(see point 2.3 below).

This scenario is based on the assumption that the measures of
simplification are not subject to substantial modifications in the decision
making process.

Note: this section only concerns the process of grant management,
for administrative and operational expenditure implemented through public
procurement processes the 2% ceiling will apply as tolerable risk of error.

2.3.
Measures to prevent fraud and irregularities

Specify existing or envisaged prevention and
protection measures.

The Directorates General charged with the implementation of the
research and innovation budget are determined to fight against fraud at all
stages of the grant management process. They have developed, and are implementing,
anti-fraud strategies, including an enhanced use of intelligence, especially
using advanced IT tools, and training and information for staff. Sanctions have
been developed to provide deterrents to fraud, as well as appropriate penalties
if they are identified. These efforts will continue. The proposals for Horizon
2020 have been subject to fraud proofing and an assessment of their impact.
Overall the measures proposed should have a positive impact on the fight
against fraud, especially the greater emphasis on risk based audit and
reinforced scientific evaluation and control.

It should be underlined that detected fraud has been very low in
proportion to total expenditure, nevertheless the Directorates General charged
with the implementation of the research budget remain committed to combat it.

The Commission shall take appropriate measures ensuring that, when
actions financed under this Regulation are implemented, the financial interests
of the Union are protected by the application of preventive measures against
fraud, corruption and any other illegal activities, by effective checks and, if
irregularities are detected, by the recovery of the amounts wrongly paid and,
where appropriate, by effective, proportionate and deterrent penalties.

The Commission or its representatives and the Court of Auditors
shall have the power of audit, on the basis of documents and on-the-spot, over
all grant beneficiaries, contractors and subcontractors who have received Union
funds under the Programme.

The European Anti-fraud Office (OLAF) may carry out on-the-spot
checks and inspections on economic operators concerned directly or indirectly
by such funding in accordance with the procedures laid down in Regulation
(Euratom, EC) No 2185/96 with a view to establishing whether there has
been fraud, corruption or any other illegal activity affecting the financial
interests of the Union in connection with a grant agreement or grant decision
or a contract concerning Union funding.

Without prejudice to the paragraphs above, cooperation agreements
with third countries and international organisations and grant agreements and
grant decisions and contracts resulting from the implementation of this
Regulation shall expressly empower the Commission, the Court of Auditors and
OLAF to conduct such audits, on-the-spot checks and inspections.

3.
ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1.
Heading(s) of the multiannual financial
framework and expenditure budget line(s) affected

· Existing expenditure budget lines (Not applicable)

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description........................................] || Diff./non-diff ([34]) || from EFTA[35] countries || from candidate countries[36] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

|| [XX.YY.YY.YY] || Diff./non-diff. || YES/NO || YES/NO || YES/NO || YES/NO

· New budget lines requested

In order of multiannual financial framework
headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading 1 - Smart and Inclusive Growth] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

|| Administrative Expenditures Indirect Research: XX 01 05 01 Expenditure related to Research Staff XX 01 05 02 External staff for Research XX 01 05 03 Other management expenditure for Research Direct Research: 10 01 05 01 Expenditure related to Research Staff 10 01 05 02 External staff for Research 10 01 05 03 Other management expenditure for Research 10 01 05 04 Other expenditure for major research infrastructures[37] || NDA || YES || YES || YES || YES

|| Operational Expenditures XX 02 01 01 Horizontal Actions Excellent science 08 02 02 01 European Research Council 15 02 02 00 Marie Curie actions on skills, training and career development 08 02 02 02 European Research Infrastructures (including eInfrastructures) 09 02 02 01 European Research Infrastructures (including eInfrastructures) 08 02 02 03 Future and Emerging Technologies 09 02 02 02 Future and Emerging Technologies Industrial leadership 08 02 03 01 Leadership in enabling and industrial technologies 09 02 03 00 Leadership in enabling and industrial technologies 02 02 02 01 Leadership in enabling and industrial technologies 08 02 03 02 Access to risk finance 02 02 02 02 Access to risk finance 08 02 03 03 Innovation in SMEs 02 02 02 03 Innovation in SMEs Societal challenges 08 02 04 01 Health, demographic change and wellbeing 08 02 04 02 Food security, sustainable agriculture, marine and maritime research and the bio-economy 05 02 01 00 Food security, sustainable agriculture, marine and maritime research and the bio-economy 08 02 04 03 Secure, clean and efficient energy 32 02 02 00 Secure, clean and efficient energy 08 02 04 04 Smart, green and integrated transport 06 02 02 00 Smart, green and integrated transport 08 02 04 05 Climate action, resource efficiency and raw materials 07 02 02 00 Climate action, resource efficiency and raw materials 02 02 03 01 Climate action, resource efficiency and raw materials 08 02 04 06 Inclusive, innovative and secure societies 02 02 03 02 Inclusive, innovative and secure societies 09 02 04 00 Inclusive, innovative and secure societies 10 02 01 00 Non-nuclear direct actions of the Joint Research Centre || DA || YES || YES || YES || YES

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || Number || [Heading 1 - Smart and Inclusive Growth]]

DGs: Research and Innovation / Information Society and Media/ Education and Culture/ Enterprise and Industry/ Agriculture and Rural Development/ Energy/ Mobility and Transport/ JRC direct research/ Environment || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || ≥2021 || TOTAL

Ÿ Operational appropriations ||

Horizontal actions

XX 02 01 01 || Commitments || (1a) || pm || pm || pm || pm || pm || pm || pm || pm ||

Payments || (2a) || pm || pm || pm || pm || pm || pm || pm || pm ||

08 02 02 01 European Research Council || Commitments || (1b) || 1640,417 || 1753,575 || 1879,819 || 2009,349 || 2144,525 || 2284,826 || 2427,130 || || 14139,641

Payments || (2b) || 204,154 || 1055,485 || 1335,717 || 1661,563 || 1868,955 || 2063,161 || 2199,449 || 3751,158 || 14139,641

08 02 02 02 European Research Infrastructures (including eInfrastructures) || Commitments || (1c) || 199,794 || 211,723 || 225,177 || 238,964 || 253,364 || 268,311 || 283,451 || || 1680,784

Payments || (2c) || 24,865 || 128,015 || 161,107 || 199,448 || 223,066 || 244,699 || 259,212 || 440,372 || 1680,784

08 02 02 03Future and Emerging Technologies** 09 02 02 02 Future and Emerging Technologies** || Commitments || (1d) || 283,318 || 300,310 || 320,217 || 469,448 || 606,917 || 642,722 || 678,989 || || 3301,921

Payments || (2d) || 48,847 || 251,487 || 316,496 || 391,819 || 438,217 || 480,715 || 509,225 || 865,115 || 3301,921

08 02 03 01 Leadership in enabling and industrial technologies || Commitments || (1e) || 545,193 || 577,744 || 614,457 || 652,078 || 691,372 || 732,159 || 773,472 || || 4586,474

Payments || (2e) || 67,851 || 349,323 || 439,624 || 544,249 || 608,697 || 667,728 || 707,329 || 1201,673 || 4586,474

08 02 03 02 Access to risk finance** 02 02 02 02 Access to risk finance** || Commitments || (1f) || 447,955 || 474,700 || 504,865 || 535,776 || 568,062 || 601,574 || 635,520 || || 3768,450

Payments || (2f) || 447,955 || 474,700 || 504,865 || 535,776 || 568,062 || 601,574 || 635,520 || 0 || 3768,450

08 02 03 03 Innovation in SMEs** 02 02 02 03 Innovation in SMEs** || Commitments || (1g) || 78,373 || 83,053 || 88,330 || 93,738 || 99,387 || 105,250 || 111,189 || || 659,320

Payments || (2g) || 9,754 || 50,216 || 63,197 || 78,238 || 87,502 || 95,988 || 101,681 || 172,744 || 659,320

08 02 04 01 Health, demographic change and wellbeing || Commitments || (1h) || 1030,952 || 1051,848 || 1073,128 || 950,146 || 1398,959 || 1481,491 || 1565,088 || || 8551,612

Payments || (2h) || 126,578 || 651,675 || 820,134 || 1015,317 || 1135,546 || 1245,671 || 1319,549 || 2237,142 || 8551,612

08 02 04 02 Food security, sustainable agriculture, marine and maritime research and the bio-economy** 05 02 01 00 Food security, sustainable agriculture, marine and maritime research and the bio-economy** || Commitments || (1i) || 525,695 || 557,082 || 592,481 || 628,757 || 666,645 || 705,974 || 745,810 || || 4422,444

Payments || (2i) || 65,424 || 336,830 || 423,901 || 524,785 || 586,927 || 643,848 || 682,032 || 1158,697 || 4422,444

08 02 04 03 Secure, clean and efficient energy** 32 02 02 00 Secure, clean and efficient energy** || Commitments || (1j) || 732,073 || 775,781 || 825,079 || 875,596 || 928,359 || 983,126 || 1038,601 || || 6158,614

Payments || (2j) || 91,108 || 469,063 || 590,317 || 730,805 || 817,344 || 896,610 || 949,786 || 1613,580 || 6158,614

08 02 04 04 Smart, green and integrated transport** 06 02 02 00 Smart, green and integrated transport** || Commitments || (1k) || 861,218 || 912,637 || 970,631 || 1030,059 || 1092,129 || 1156,559 || 1221,820 || || 7245,052

Payments || (2k) || 107,180 || 551,811 || 694,454 || 859,727 || 961,532 || 1054,781 || 1117,337 || 1898,231 || 7245,052

08 02 04 05 Climate action, resource efficiency and raw materials** 02 02 03 01 Climate action, resource efficiency and raw materials ** 07 02 02 00 Climate action, resource efficiency and raw materials ** || Commitments || (1l) || 400,096 || 423,983 || 450,925 || 478,534 || 507,370 || 537,302 || 567,620 || || 3365,830

Payments || (2l) || 49,793 || 256,354 || 322,622 || 399,403 || 446,698 || 490,019 || 519,081 || 881,860 || 3365,830

08 02 04 06 Inclusive, innovative and secure societies** 09 02 04 00 Inclusive, innovative and secure societies** 02 02 03 02 Inclusive, innovative and secure societies** || Commitments || (1m) || 483,533 || 512,402 || 544,963 || 578,329 || 613,179 || 649,353 || 685,994 || || 4067,754

Payments || (2m) || 60,177 || 309,815 || 389,903 || 482,696 || 539,855 || 592,210 || 627,332 || 1065,767 || 4067,754

09 02 02 01 European Research Infrastructures (including eInfrastructures) || Commitments || (1n) || 113,951 || 120,755 || 128,428 || 136,291 || 144,504 || 153,029 || 161,664 || || 958,622

Payments || (2n) || 14,181 || 73,012 || 91,886 || 113,754 || 127,224 || 139,562 || 147,839 || 251,163 || 958,622

09 02 03 00 Leadership in enabling and industrial technologies || Commitments || (1o) || 1005,176 || 1065,189 || 1132,878 || 1202,241 || 1274,686 || 1349,886 || 1426,056 || || 8456,112

Payments || (2o) || 125,096 || 644,049 || 810,537 || 1003,436 || 1122,258 || 1231,095 || 1304,108 || 2215,533 || 8456,112

02 02 02 01 Leadership in enabling and industrial technologies || Commitments || (1p) || 194,477 || 206,088 || 219,184 || 232,604 || 246,620 || 261,169 || 275,907 || || 1636,048

Payments || (2p) || 24,203 || 124,608 || 156,819 || 194,140 || 217,129 || 238,186 || 252,313 || 428,651 || 1636,048

15 02 02 00 Marie Curie actions on skills, training and career development || Commitments || (1q) || 728,274 || 771,756 || 820,798 || 871,052 || 923,542 || 978,025 || 1033,212 || || 6126,659

Payments || (2q) || 90,635 || 466,629 || 587,254 || 727,013 || 813,103 || 891,958 || 944,858 || 1605,208 || 6126,659

10 02 01 00 Non-nuclear direct actions of the Joint Research Center || Commitments || (1r) || 32,459 || 33,108 || 33,771 || 34,445 || 35,134 || 35,838 || 36,554 || || 241,311

Payments || (2r) || 12,325 || 27,672 || 31,582 || 33,891 || 34,568 || 35,261 || 35,965 || 30,048 || 241,311

- An additional amount of EUR 1628,002
million shall be made available for the years 2018-2020 pro-rata from the
budgets of the Societal challenges and Leadership in enabling and industrial
technologies, on an indicative basis and subject to the review set out in
Article 26(1).

** The repartition between DGs is not
determined at this stage.

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || ≥2021 || TOTAL

Ÿ TOTAL operational appropriations || Commitments || (4) || 9302,954 || 9831,734 || 10425,13 || 11017,41 || 12194,75 || 12926,59 || 13668,08 || 0 || 79366,65

Payments || (5) || 1570,126 || 6220,744 || 7740,415 || 9496,06 || 10596,68 || 11613,07 || 12312,62 || 19816,94 || 79366,65

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||

XX 01 05 01 Expenditure related to Research Staff* || (6a) || 225,330 || 229,437 || 234,401 || 239,375 || 244,140 || 249,023 || 254,004 || || 1675,710

XX 01 05 02 External staff for Research* || (6b) || 163,655 || 226,831 || 250,789 || 281,464 || 307,748 || 333,028 || 367,472 || || 1930,987

XX 01 05 03 Other management expenditure for Research* || (6c) || 136,441 || 160,039 || 170,285 || 182,771 || 193,866 || 204,350 || 218,071 || || 1265,823

10 01 05 01 Expenditure related to Research Staff || (6d) || 151,686 || 156,996 || 162,490 || 168,178 || 174,064 || 180,156 || 186,461 || || 1180,031

10 01 0,5 02 External staff for Research || (6e) || 34,280 || 35,052 || 35,840 || 36,647 || 37,471 || 38,314 || 39,176 || || 256,781

10 01 05 03 Other management expenditure for Research || (6f) || 65,312 || 66,618 || 67,950 || 69,309 || 70,695 || 72,109 || 73,551 || || 485,545

10 01 05 04 Other expenditure for major research infrastructures || (6g) || 6,551 || 6,682 || 6,816 || 6,952 || 7,091 || 7,233 || 7,378 || || 48,703

Ÿ TOTAL administrative appropriations || (6) || 783,255 || 881,655 || 928,571 || 984,696 || 1035,075 || 1084,213 || 1146,113 || || 6843,58

TOTAL appropriations under HEADING 1 of the multiannual financial framework || Commitments || =4+ 6 || 10086,21 || 10713,39 || 11353,70 || 12002,11 || 13229,83 || 14010,8 || 14814,19 || || 86210,23

Payments || =5+ 6 || 2353,381 || 7102,399 || 8668,986 || 10480,76 || 11631,76 || 12697,28 || 13458,73 || 19816,94 || 86210,23

- These figures are based on an almost full use of the
authorised maximum administrative expenditures foreseen in the legal base. They
are presented for illustrative purposes in terms of the numbers of personnel
that could be employed with these amounts.

If more than one heading is affected by the proposal /
initiative:

Ÿ TOTAL operational appropriations || Commitments || (4) || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

Payments || (5) || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

Payments || =5+ 6 || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

Heading of multiannual financial framework: || 5 || " Administrative expenditure "

EUR million (to 3 decimal places)

|| || || Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

DG: <.......> ||

Ÿ Human resources || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

Ÿ Other administrative expenditure || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

TOTAL DG <.......> || Appropriations || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

EUR million (to 3 decimal places)

|| || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Year ≥2021 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 10086,21 || 10713,39 || 11353,7 || 12002,11 || 13229,83 || 14010,80 || 14814,19 || 0 || 86210,23

Payments || 2353,381 || 7102,399 || 8668,986 || 10480,76 || 11631,76 || 12697,28 || 13458,73 || 19816,94 || 86210,23

|| || || || || || || || || ||

3.2.2.     Estimated impact on
operational appropriations

–
 ̈  The proposal/initiative does not require the use of operational
appropriations

–
þ  The proposal/initiative requires the use of operational
appropriations, as explained below:

Commitment appropriations in EUR million (to 3 decimal
places)/ current prices

Indicate objectives and outputs ò || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL

OUTPUTS

Type of output[38] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

SPECIFIC OBJECTIVE No 1[39] Excellent science ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°1 Excellent science || || 2965,755 || || 3158,119 || || 3374,440 || || 3725,105 || || 4072,852 || || 4326,913 || || 4584,446 || || 26207,628

SPECIFIC OBJECTIVE No 2 Industrial leadership || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°2 Industrial leadership || || 2271,175 || || 2406,774 || || 2559,714 || || 2716,437 || || 2880,127 || || 3050,036 || || 3222,143 || || 19106,407

SPECIFIC OBJECTIVE No 3 Societal challenges || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°3 Societal challenges || || 4033,565 || || 4233,731 || || 4457,207 || || 4541,423 || || 5206,640 || || 5513,803 || || 5824,934 || || 33811,304

SPECIFIC OBJECTIVE No 4 Provide integrated and timely scientific and technical support to the European policy making process : Joint Research Centre || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°4 Provide integrated and timely scientific and technical support to the European policy making process : Joint Research Centre || || 32,459 || || 33,108 || || 33,771 || || 34,445 || || 35,134 || || 35,838 || || 36,554 || || 241,311

TOTAL COST || || 9302,954 || 0 || 9831,732 || 0 || 10425,13 || 0 || 11017,41 || 0 || 12194,75 || 0 || 12926,59 || 0 || 13668,08 || 0 || 79366,65

3.2.3.     Estimated impact on
appropriations of an administrative nature

3.2.3.1.  Summary

–
 ̈  The proposal/initiative does not require the use of administrative
appropriations

–
þ  The proposal/initiative requires the use of administrative
appropriations, as explained below:

EUR million (to 3
decimal places)

|| Year 2014 [40] || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL

HEADING 5 of the multiannual financial framework || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

Human resources || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

Other administrative expenditure || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

Subtotal HEADING 5 of the multiannual financial framework || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a. || n.a.

Outside HEADING 5[41] of the multiannual financial framework || || || || || || || ||

Human resources* || 574,951 || 648,316 || 683,520 || 725,664 || 763,423 || 800,521 || 847,113 || 5043,509

Other expenditure of an administrative nature* || 208,304 || 233,339 || 245,051 || 259,032 || 271,652 || 283,692 || 299 || 1800,071

Subtotal outside HEADING 5 of the multiannual financial framework || 783,255 || 881,655 || 928,571 || 984,696 || 1035,075 || 1084,213 || 1146,113 || 6843,58

TOTAL** || 783,255 || 881,655 || 928,571 || 984,696 || 1035,075 || 1084,213 || 1146,113 || 6843,58

- These figures are based on an almost full use of
the authorised maximum administrative expenditures foreseen in the legal base.
They are presented for illustrative purposes in terms of the numbers of
personnel that could be employed with these amounts.

** These figures might be adjusted as a result of the
envisaged externalisation procedure.

3.2.3.2.  Estimated requirements of
human resources

–
 ̈  The proposal/initiative does not require the use of human
resources

–
þ  The proposal/initiative requires the use of Commission human
resources, as explained below:

Estimate expressed in full amounts (or at
most to one decimal place)

|| || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020

Ÿ Establishment plan posts (officials and temporary agents) ||

|| XX 01 01 01 (Headquarters and Commission’s Representation Offices) || 100 || 100 || 100 || 100 || 100 || 100 || 100

|| XX 01 01 02 (Delegations) || || || || || || ||

|| XX 01 05 01 (Indirect research)** || 1677.5 || 1677.5 || 1677.5 || 1677.5 || 1677.5 || 1677.5 || 1677.5

|| 10 01 05 01 (Direct research) || 1390 || 1390 || 1390 || 1390 || 1390 || 1390 || 1390

|| Ÿ External personnel (in Full Time Equivalent unit: FTE)[42] ||

|| XX 01 02 01 (CA, INT, SNE from the "global envelope") || || || || || || ||

|| XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || || || ||

|| XX 01 04 yy [43] || - at Headquarters[44] || || || || || || ||

|| || - in delegations || || || || || || ||

|| XX 01 05 02 (CA, INT, SNE - Indirect research)* || 865 || 865 || 865 || 865 || 865 || 865 || 865

|| 10 01 05 02 (CA, INT, SNE - Direct research) || 593 || 593 || 593 || 593 || 593 || 593 || 593

|| Other budget lines (specify) || || || || || || ||

|| TOTAL || 4625.5 || 4625.5 || 4625.5 || 4625.5 || 4625.5 || 4625.5 || 4625.5

- The above figures will be adjusted in accordance with the results
of the envisaged externalisation process.

** The
workload corresponding to the implementation of EIT and Innovation is estimated
at some 100 establishment plan posts for the Commission.

XX is the
policy area or budget title concerned.

The human resources required
will be met by staff from the DG who are already assigned to management of the action
and/or have been redeployed within the DG, together if necessary with any
additional allocation which may be granted to the managing DG under the annual
allocation procedure and in the light of budgetary constraints.

Description of
tasks to be carried out:

Officials and temporary agents || The total number of officials and temporary agents will be used to contribute to the objectives of Horizon 2020 during all the process, from the preparation of the Work Programme to the final dissemination of results during 2014-2020. These human resources include all the needs in the various management modes as indicated in point 1.7 of the LFS

External personnel || The total number of external personnel will assist officials and temporary agents to contribute to the objectives of Horizon 2020 during all the process, from the preparation of the Work Programme to the final dissemination of results during 2014-2020. These human resources include all the needs in the various management modes as indicated in point 1.7 of the LFS

3.2.4.     Compatibility with the
current multiannual financial framework

–
þ  Proposal/initiative is compatible the current multiannual
financial framework.

–
 ̈  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

Not applicable

.

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[45].

Not applicable

.

3.2.5.     Third-party contributions

–
The proposal/initiative provides for the
co-financing estimated below:

Appropriations in EUR million (to 3 decimal places)

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Total

Specify the co-financing body || Third countries associated to the programme ||

TOTAL appropriations co-financed * || pm

- Bilateral Association Agreements are not
fixed yet and that is why they will be added at a later stage.

3.3.        Estimated impact on
revenue

–
 ̈  Proposal/initiative has no financial impact on revenue.

–
þ  Proposal/initiative has the following financial impact:

–
 ̈         on own resources

–
þ         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[46]*

Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020

Item 6011 Item 6012 Item 6013 Item 6031 || || pm || pm || pm || pm || pm || pm || pm

- Bilateral Association Agreements are not
fixed yet and that is why they will be added at a later stage.

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

02 03 01 Appropriations accruing from contributions form third
parties

05 03 01 Appropriations accruing from contributions from third
parties

06 03 01 Appropriations accruing from contributions form third
parties

07 03 01 Appropriations accruing from contributions form third
parties

08 04 01 Appropriations accruing from contributions form third
parties

09 03 01 Appropriations accruing from contributions form third
parties

10 02 02 Appropriations accruing from contributions form third parties

15 03 01 Appropriations accruing from contributions form third
parties

32 03 01 Appropriations accruing form contributions from third
parties

Specify the method for
calculating the impact on revenue.

Certain associated states may contribute to a supplementary funding
of the framework programme through association agreements. The method of
calculation will be agreed in these Association Agreements and is not
necessarily the same in all agreements. Mostly the calculations are based on
the GDP of the Associated State compared to the GDP of the Member States whilst
applying this percentage to the overall budget voted.

[1]               COM(2011) 500 final

[2]               OJ C , , p.

[3]               OJ C , , p.

[4]               OJ C , , p.

[5]               OJ , , p.

[6]               OJ L 57, 24.2.2007, p. 14.

[7]               COM(2010) 2020

[8]               OJ L 55, 28.2.2011, p. 13.

[9]               OJ L 107, 30.4.1996, p. 12.

[10]             OJ L 400, 30.12.2006, p. 86.

[11]             OJ L 400, 30.12.2006, p. 243.

[12]             OJ L 400, 30.12.2006, p. 272.

[13]             OJ L 400, 30.12.2006, p. 299.

[14]             OJ L 400, 30.12.2006, p. 368.

[15]

[16]             OJ L 55, 28.2.2011, p. 13.

[17]             In principle at least 80%

[18]             The ESFRI Roadmap includes around fifty
infrastructures of key relevance for Europe (with estimated annual operating
cost of two billion Euro) covering all scientific disciplines. Other European
world-class facilities include infrastructures such as GÉANT or those
identified in the CERN European Strategy for Particle Physics. All of them need
partnership between Member States and long-term commitment for their
implementation.

[19]             As all research becomes computer- and data-intensive,
access to state of the art e-infrastructures has become essential for all
researchers. For example, GÉANT connects 40 million users in over 8,000 institutions across 40 countries, whereas the European grid infrastructure is the world's largest distributed
computing infrastructure with over 290 sites in 50 countries. Relentless
progress in ICT and the increasing needs of science for computing and
processing massive amounts of data pose major financing and organisational
challenges for ensuring seamless services to researchers.

[20]             COM(2009)512

[21]             Internet of Things will be coordinated as a
cross-cutting issue

[22]             Including space based networks

[23]             COM(2011) 152

[24]             COM(2007) 723

[25]             Estimates developed by PricewaterhouseCoopers for
“sustainability-related global business opportunities in natural resources
(including energy, forestry, food and agriculture, water and metals)” and WBCSD
(2010) Vision 2050: The New Agenda for Business, World Business Council for
Sustainable Development: Geneva, URL:
http://www.wbcsd.org/web/projects/BZrole/Vision2050-FullReport_Final.pdf

[26]             COM (2008) 699

[27]             European Parliament "Policy Department Economic
and Scientific Policy, Eco-innovation - putting the EU on the path to a
resource and energy efficient economy, Study and briefing notes", March
2009

[28]             Eco-innovation Observatory "The Eco-Innovation
Challenge - Pathways to a resource-efficient Europe - Annual Report 2010",
May 2011

[29]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[30]             As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.

[31]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[32]             As referred to in Article 185 of the Financial
Regulation.

[33]             http://www.trust-researchers.eu/

[34]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations

[35]             EFTA: European Free Trade Association.

[36]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[37]             The JRC requests a new budget line for infrastructure
investments. Most of the JRC facilities date from the 60's and 70's and are not
state of the art anymore. As a consequence, new facilities and the upgrading of
the existing infrastructure are necessary to carry out the JRC multi-annual
work-programme in compliance with EU safety and security standards as well as
with the EU/20/20/20 environmental objectives. The JRC has established its
"Infrastructure Development plan 2014 – 2020"; identifying the
investment needs till 2020 for all JRC sites that are reflected in the new
budget line proposed.

[38]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[39]             As described in Section 1.4.2. "Specific
objective(s)..."

[40]             Year N is the year in which implementation of the
proposal/initiative starts.

[41]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[42]             CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert;

[43]             Under the ceiling for external personnel from
operational appropriations (former "BA" lines).

[44]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

[45]             See points 19 and 24 of the Interinstitutional
Agreement.

[46]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25% for collection costs.