EUROPEAN COMMISSION Brussels, 15.11.2022 SWD(2022) 361 final COMMISSION STAFF WORKING DOCUMENT BLUE BIOECONOMY – TOWARDS A STRONG AND SUSTAINABLE EU ALGAE SECTOR





Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS



Towards a Strong and Sustainable EU Algae Sector



{COM(2022) 592 final}



Table of Contents 1. Introduction: The Potential of Algae in Europe 1.1. Scope 1.2. What are algae? 1.3. Algae sector – the most notable EU Blue Bioeconomy sector 1.4. Political context 2. Problem definition 2.1. Overview of problem definition 2.2. Low production volumes 2.3. High production costs 2.4. Limited knowledge of market and consumers 2.5. Limited knowledge on risks and impacts of an expanded algae production 2.6. Fragmented governance framework 3. Why should the EU act? 3.1. Legal basis and context 3.2. Is it necessary for EU to act? 3.3. Would there be an added value of an EU action? 4. The EU Algae Initiative and its objectives 4.1. General objectives

4.2. Specific objectives 4.3. Operational objectives 5. Ongoing and proposed policy actions 5.1.1. European Algae Stakeholder Forum (EU4Algae) 5.1.2. Algae-related EU funding calls 5.1.3. Strategic guidelines for the sustainable development of EU aquaculture 5.1.4. Algae business support mechanisms 5.1.5. The European Commission’s Knowledge Centre for Bioeconomy 5.1.6. Algae related studies and projects 5.1.7. Ocean literacy and awareness raising 5.1.8. Algae related industry standards 5.2. Coordinated additional enablers – new proposed policy actions 6. Conclusions and recommendations 1. ANNEX 1: Proposed policy actions with explanations 2. ANNEX 2: STAKEHOLDER CONSULTATION SUMMARY 2.1. Introduction and overview of the consultation strategy 2.1.1. Consultation scope and objectives 2.1.2. Selection of consultation activities & their accessibility 2.1.3. Summary /overview on consultation activities by stakeholder groups and indicative timing 2.1.4. Consultation webpage & communication activities

2.2. Consultation Activities and Tools 2.2.1. Characteristics of the respondents 2.3. Webinar on Novel Foods regulation for algae and algae-based products 2.4. Webinar on Support the functioning of the EU algae markets 2.5. Webinar on Algae in Europe – Data collection and market information initiatives 2.6. Validation webinars of the environmental impact screening and the economic and social impact 3. ANNEX 3: STAKEHOLDER CONSULTATION RESULTS 3.1. Main stakeholder feedback 3.1.1. General responses regarding the algae sector 3.1.2. Responses on the five objectives and potential regulatory measures 3.1.3. Objective 1. Improving governance framework 3.1.4. Objective 2. Supporting the functioning of the market 3.1.5. Objective 3. Ensuring sustainable development of the EU algae sector 3.1.6. Objective 4. Increasing social awareness and acceptance 3.1.7. Objective 5. Closing knowledge, research and innovation gaps 4. ANNEX 4: OVERVIEW OF EU LEGAL REFERENCES PERTAINING TO ALGAE 5. Annex 5: Expected impacts of a strong and sustainable EU Algae sector 5.1. Potential environmental impacts. 5.1.1. Environmental impacts of algae production. 5.1.2. Environmental impacts of algae products.

5.2. Potential social impacts 5.2.1. Job creation. 5.2.2. Quality of jobs 5.3. Health benefits. 5.3.1. Food 5.3.2. Pharmaceuticals 5.4. Potential economic impacts



Glossary Term or acronym Meaning or definition ABO Algae Biomass Organization B2B Business-to-business B2C Business-to-consumer BBF Blue Bioeconomy Forum CEN European Committee for Standardization CFP Common Fisheries Policy CMO Common Market Organisation COP26 UN Climate Change Conference (Conference of the Parties, COP) EABA European Algae Biomass Association EC European Commission EFSA European Food Safety Authority EGD European Green Deal EMFAF European Maritime Fisheries and Aquaculture Fund EMFF European Maritime and Fisheries Fund ESIF European Structural and Investment Funds FAD Fish Aggregating Devices HRAP High Rate Algal Pond IMTA Integrated multi-trophic aquaculture LCA Life-cycle assessment MS Member States MSP Maritime spatial planning PBR PhotoBioReactors OPC Open Public Consultation SME Small and Medium-sized Enterprises YOY Year-on-year

1.Introduction: The Potential of Algae in Europe 1.1. Scope This document provides supporting information to the development of the European Commission Communication “Blue Bioeconomy - Towards a Strong and Sustainable EU Algae Sector ” (hereafter: “EU Algae Initiative”). The EU Algae Initiative will aim to unlock the algae potential in Europe by increasing sustainable production, ensuring safe consumption and boosting innovative use of algae and algae-based products. This will help to achieve the objectives of the European Green Deal, the transition to a green, circular self-sufficient and carbon neutral EU, post Covid-19 recovery and mitigation of economic crisis resulted by Russia’s military aggression against Ukraine. In this vain, this Staff Working Document aims to: Identify valid, well-founded and realistic policy solutions and actions based on best available science, information, good practices and views provided by the relevant algae sector representatives during the stakeholder consultation process. This staff working document takes due account of previous analyses, recommendations, studies and guidelines of the Blue Bioeconomy and algae sector . 1.2.What are algae? Algae is a common name for a group of taxonomically unrelated organisms sharing a number of traits. Algae include cyanobacteria, eukaryotic microalgae and seaweeds (or macroalgae). Common traits are: oxygenic photosynthesis (use of visible light to fix CO2 with oxygen release), chlorophylls as main photosynthetic pigment, lack of differentiated tissues, primary producers in aquatic ecosystems. There are exceptions because some algae can grow in the dark using simple organic compounds and some algae do not possess photosynthetic organelles so are unable to perform photosynthesis. Although there is a vast range of algae species – with estimates suggesting 72,500 species – global production focuses on five genera accounted for more than 95% of world seaweed cultivation production, including the well-known Japanese kelp, nori and wakame,. In Europe, the main species farmed and already sold on the European market are Saccharina latissima, Alaria esculenta and Ulva sp. On a smaller scale and for niche markets, there are also: Porphyra spp., Palmaria palmata, Codium tomentosum, Gracilaria gracilis and Laminaria digitata, while for microalgae the species produced by most enterprises are Chlorella sp. and Nannochloropsis sp. The coastal EU waters are colonized by a strong diversity of wild populations of algae with a total of 1550 different seaweed species, of which only 23 are currently included as food or food supplements in the EU Novel Food catalogue.

Additionally, algae are key organisms in coastal ecosystems that provide habitat, food, reproductive areas and shelter to species from different levels of the food web . In fact, about 50% of the photosynthesis on Earth occurs in seaweeds and microscopic algae floating in the oceans absorbing a range of excess inorganic nutrients from the ocean, including nitrogen and phosphorus , as well as other compounds such as CO2. Research is currently conducted on the carbon storage potential of algae, leading some to speak of a forthcoming “Seaweed Revolution” , although carbon storage needs to be further explored . 1.3.Algae sector – the most notable EU Blue Bioeconomy sector While in Eastern Asia algae have been an integral part of human diets for centuries, in Europe they are mainly considered as niche or novel food product. Low in fat and rich in dietary fibres, micronutrients and bioactive compounds, algae are often portrayed as healthy and low-calorie food, with some species known for having particularly high protein content. The biochemical compounds and properties make algae a valuable ocean material, paving the way for a growing number of potential commercial applications also outside the food industry: animal/fish feed and feed additives, medical devices, pharmaceuticals, nutraceuticals, fertilisers, plant biostimulants, bio-packaging, cosmetics or biofuels (see Figure Nr.1). Figure 1. Potential commercial applications of algae in Europe Beyond these examples, algae biomass has many more innovative applications that are being developed or scaled, including textile fibres, laundry detergents, construction materials, biochar for soil improvement and carbon dioxide removal or methanation that converts the biomass into biogas. On the other hand, leakage of agricultural nutrients into the aquatic ecosystems can cause periodic blue-green algae blooms with negative consequences on coastal ecosystems (through oxygen depletion and the creation of anaerobic conditions) and that also cause concerns for human health. This latter example demonstrates that by removing nutrients (causing eutrophication) from coastal marine waters we can bring waters them back into productive value chains thus turning coastal marine pollution into business opportunities. European Algae Biomass Association (EABA) estimates a turnover in algae products in EEA countries of more than €350 million in 2018 (including transformation), by considering both companies and jobs. This estimate reaches more than €400 million when including equipment companies and R&D companies. In algae turnover data estimates, care should be taken by considering bulk biomass and transformed products, as algae product value (after transformation) greatly exceeds the value of bulk biomass (see figure Nr.2). Figure 2. Current EU algae value chains Currently, the main algae production methods in the EU are laid down in figure Nr. 3 below. Main algae production volumes (according to the available data) in Europe and globally are provided in the Table 1 below. Figure 3. Main algae production methods in Europe France is the largest farmed seaweed producer in the EU, and only reported a production volume of 500 tonnes in 2016. Seaweed farming of most species (Laminaria, Alaria, Undaria, Saccharina etc) requires the mastering of the reproductive life cycle (seeding, growing and harvesting), although some other species (Ulva, Porphyra, etc.) can also grow and multiply by themselves (undergo vegetative reproduction). Seaweed is mainly farmed out at sea but can also be produced in open ponds with direct access to sea water. Microalgae on the other hand are produced on-land in open or closed systems. In open systems, usually in Open Raceway Ponds (ORP) stirred by a paddle wheel, the growth medium is in direct contact with the atmosphere. Closed systems are usually designed as Photobioreactors (PBR) - horizontally or vertically arranged tubes or panels with high volumetric productivity and controlled conditions - or as fermenters – to benefit from the ability of microalgae to grow in the dark on sugars (heterotrophic production) - both with access to seawater for marine species or freshwater for freshwater species. As of April 2022, a total of 187 algae and 212 Spirulina production plants (at sea and on-land) have been identified throughout the EU,24. Among those algae plants, 57% produce macroalgae and 43% microalgae (by number of production plants, not the production volumes). The largest number of companies are based in France, followed by Spain, Italy, Germany and Ireland. In other European countries (namely Faroe Islands, Greenland, Switzerland and the UK), there are 57 production plants (47 macroalgae, 8 microalgae and 2 Spirulina) have been mapped (Figure 4). Figure 4. Macroalgae, microalgae and Spirulina production plants in Europe (April 2022).28 Table Nr.1. Algae production volumes in Europe and globally Algae6 type Production methods European volumes (2020) Global volumes Seaweed (or macroalgae) Wild harvesting (boat and handpicked) 300 000 tonnes wet weight per annum (or 37 000 tonnes eq. of dry weight per annum) 1.09 million tonnes of wet weight in 2015 Seaweed farming at sea (long lines) ~ 600 tonnes of wet weight per annum (or ~45 tonnes eq. dry weight per annum) 35.76 million tonnes of wet weight in 20199 Seaweed farming on-land Microalgae In open raceway ponds or photobioreactors ~ 100 tonnes of dry weight per annum 56 456 tonnes of wet weight in 2021 Cyanobacteria In open raceway ponds or photobioreactors ~120 tonnes of dry weight per annum Labyrinthulomycetes In open raceway ponds or photobioreactors No data Looking forward, algae are a promising ocean resource, largely untapped in Europe that offers an enormous potential for a variety of food and non-food uses. These have the potential to contribute to mitigate the impact of global challenges such as climate change, environmental degradation, biodiversity loss, and unsustainable food production while creating new business opportunities for Europe. Figure Nr.4. outlines how the EU Algae Initiative can contribute to achieving the objectives of the European Green Deal. The production of algae mitigates climate change by, for example, mitigating CO2, absorbing phosphorous and nitrogen. Food applications of algae products can contribute to the Farm to Fork Strategy and more sustainable and innovative food systems. Additionally, non-food applications of algae, such as for the production of biofuels can help achieve sustainable energy objectives. Nevertheless, to unlock algae potential in the EU a cross-cutting and realistic strategy needs to be put in place to address current problems from scaling up the production, reducing costs, developing innovative technologies until improving knowledge about potential risks to the environment or human health and impacts from algae products and production processes (see heading 2 below) by achieving objectives (heading 4), proposed policy solutions, and corresponding actions points (heading 5 below).

Figure 4. Algae in the European Green deal Why algae are an untapped resource in the EU? While today’s EU algae sector remains small, the conditions are favourable to grow it into an innovative sector within the EU Blue Bioeconomy. Figure Nr. 5 provides an overview of the EU demand for algae and algae-based products. As the EU is a top global importer of seaweed products in terms of value (€554 million in 2016), there is clearly a strong demand for seaweed in the EU which is only set to increase in line with health and sustainability trends. Seaweed for Europe estimates that European demand for seaweed will reach €3.0 – 9.3 billon in 2030 across all segments, with feed, food and biostimulants being the largest34. For example, the demand for Chlorella and Spirulina is growing in Europe, and it is expected that the European market for Chlorella will grow at a compound annual growth rate (CAGR) of 6.4% to 2025. The CAPR for the European market of Spirulina is expected to grow with 8.7% to 2025. There is a growing vegetarian and vegan population in the EU; currently there are around 75 million vegetarians and vegans living in the EU. This number is expected to increase in the coming years and leads to a growing market and increase in demand for plant-based food products, including algae. Additionally, the ageing population in the EU and increasingly health-conscious consumers are drivers for an increase in demand for algae food products, such as spirulina and chlorella based products. Moreover, EU coastal regions have been recognized as a fertile ground and with high opportunity areas for the algae sector to thrive. The Atlantic Ocean and the North Sea indeed provide ideal natural conditions for seaweed cultivation due to their cold, nutrient-rich waters, and researchers believe that Europe has vast areas suitable for seaweed and macroalgae cultivation. Besides, data show that China, having 13 000 km coastline with actual cultivation area of 136 223 ha (1362 km2), has cultivated 20.1 Mio tons of algae in 2019. At the same time, EU-27, with its 66 000 km coastline and 5 mio km2 of marine area (where 141 000 km2 are near-shore area (0-1 nautical mile from coastline) and 715 000 km2 territorial waters (0-12 nautical miles from coastline)) has an annual cultivated seaweed amount of less than 1000 t. If the EU algae potential is to be unlocked, by 2030, one-third of algae products in the global market could be produced by the EU suppliers34. This increase in production would create around 85,000 jobs and would remove thousands of tonnes of phosphorus and nitrogen annually and would mitigate up to 5.4 million tonnes of CO2 emissions per year. Figure 5. Expected growing demand for algae products 1.4.Political context As aquatic resources, algae fall under the European Commission’s Fisheries and Maritime Affairs policy. More specifically, the algae sector, as part of the blue bioeconomy, is considered an evolving and growing innovative sector of the blue economy providing new prospects and creating jobs. Algae cultivation falls under the notion of aquaculture, which is shared competence between the EU Member States and European Commission (the latter performs an ″open method of coordination‶). The EU algae initiative will be implemented as an initiative complementary to national legal acts and policies The EU’s new approach to the sustainable blue economy recognizes the role of algae in delivering on the European Green Deal objectives to ‘build a climate-neutral, green, fair and social Europe’ and develop innovative, healthy and sustainable food systems, and a sustainable and circular bioeconomy . The document also sets an action to develop a dedicated EU Algae initiative in 2022. The various types of algae production fall under the Common Fisheries Policy (CFP), covering both harvesting of marine biological resources and aquaculture. The new Strategic Guidelines for Aquaculture recognize algae’s potential as alternative protein source for sustainable food and feed systems and in promoting aquaculture systems with lower environmental impact. As renewable biological resources, algae are also a small but growing part of the European Commission’s Bioeconomy Strategy , setting out the Commission’s priorities for economic activities based on renewable biological resources from land and sea and acting as a cross-sectoral policy framework to ensure optimum use of biological resources, as well as identification and resolving of potential trade-offs. The strategy is also related and fits within the objectives of the Clean planet for all (decarbonisation strategy), which aims to improve the productivity of aquatic and marine resources to capture the full range of opportunities of the bioeconomy in tackling climate change. The Bioeconomy strategy development in EU regions reportoutlines that Spain, France, Belgium Denmark, Italy and Germany have bioeconomy strategies that include aquatic biomass from fish, aquaculture production and algae. Additionally, Spain and Germany have highlighted blue growth and blue biotechnology respectively in their regional bioeconomy strategies On 22 June 2022 the Commission adopted its proposal for EU legally binding nature restoration targets, with the objective in particular to restore ecosystems capable of removing and storing carbon and preventing and reducing the impact of natural disasters. Algae’s potential for carbon uptake, recycling and sequestration and nature-based solution towards the impact of natural disasters could help achieve these targets. Connected are the Commission’s initiatives on the certification of carbon removals and adopted communication on sustainable carbon cycles with algae carrying potential towards the objectives by removing and storing carbon and nutrients from marine ecosystems in their production cycle. Overall, enhanced EU production and use of algae will help to ensure sustainable food and farming systems, economic circularity and bio-based products. Algae cultivation should also consider and can contribute to marine ecosystem conservation and restoration, where the EU puts forward various legislations with a positive bearing on EU ecosystems. The Habitats Directive, Marine Strategy Framework Directive and the Water Framework Directive aim to conserve and ensure good environmental status of EU waters to protect marine life, including algae, from the cumulative pressures of climate change and other anthropogenic pressures. Furthermore, all Directives specify that developments, including algae cultivation, should not lead to negative ecosystem impacts (e.g. ecosystem-based management of human activity While algae are referred to in various pieces of EU legislation, there is currently no dedicated EU policy focused specifically on algae. Most relevant legal acts are further elaborated in the subheading 1.5, while a more comprehensive overview of algae related legislation is provided in Annex X. Within the EU, some Member States already recognise the potential of algae by introducing algae cultivation into national strategic documents like National Strategic Aquaculture Plans, Marine Spatial Plans and/or National Bioeconomy Strategies . At international level, the possible capacity of algae to store and sequester carbon provides an opportunity to help reach greenhouse gas emission reduction targets set under the Paris Climate Agreement. In addition, a scaled algae industry shows opportunities to contribute to nearly the entire Sustainable Development Goals (SDGs), agenda, from coastal communities' empowerment and ocean regeneration to low-impact food systems. Under the Convention of Biological Diversity (CBD), the Nagoya Protocol aims to preserve the genetic diversity of ecosystems by increasing cooperation among stakeholders involved in access to and benefit-sharing for genetic resources (e.g. resource exchange, collaborative research, inclusion of local and/or indigenous knowledge)10. 2.Problem definition 2.1.Overview of problem definition The Blue Bioeconomy Forum Roadmap published by the Blue Bioeconomy Forum at the end of 2019 and after an extensive consultation process of around 300 stakeholders, identified 14 problems, structured around 4 domains: (1) Policy, environment and regulations; (2) Finance and business development; (3) Consumers and value chains and (4) Science, technology and innovation. This sub-heading is a follow-up of the above roadmap and takes into account latest developments. A number of problems were identified with regards to the current EU algae sector and the potential for sustainable growth of the sector. Figure Nr.7 outlines the most significant problems of the current EU algae sector, and the resulting specific and general objectives to address these problems. The specific and general objectives are explained in more detail in chapter 4. Figure 7. Problems, objectives and proposed action areas for the EU Algae Initiative. 2.2. Low production volumes Nowadays, 99% of algae production volumes in the EU depend on seaweed harvesting from wild populations at sea. Although well managed and based on advice from national scientific bodies, algae harvesting from the wild will not be able to sustain the growing demand for algae products in the future. Farmed seaweed represents roughly only 1% of the algae biomass in the EU, while globally, there is an opposite trend, where 99% of global seaweed production comes from farming practices. Upgrading and accelerating sustainable seaweed cultivation systems is crucial to achieve successful increase of seaweed production volumes in the EU. Long and cumbersome process do deploy a farm (i.e. access to maritime space) is one of the causes of low production. In addition, current competition for marine space for various activities can be tackled via the modification of the national Maritime Spatial Plans (MSP) in the Member States with well-integrated seaweed farming. However, this will need to be done without jeopardizing the environmental, economic or social objectives on which current maritime spatial planning is based, and following a careful assessment of trade-offs and co-benefits. Although microalgae cultivation amounts are currently negligent in the EU (estimated 350 t yearly), microalgae cultivation in photobioreactors (71%) which are closed on-land systems have a potential of substantial scale-up of the production without a maritime space requirements and limited land needs. Additionally, 19% of microalgae is produced in open ponds and 10% is produced in fermenters.

Whereas 83% of companies producing Spirulina use open-ponds. European production volumes are minor but the economic value of the resulting products is notably compared to seaweed. Cultivation of microalgae requires specific infrastructure, valuable equipment and manpower which make the production costs relatively high. Upscaling microalgae production systems can reduce costs but need space and considerable investments, which, at a producer’s level is very challenging. In general terms, when addressing algae cultivation, species selection and improvement as well as metabolic enrichment strategies can provide solutions to not only increase biomass volumes but also increase the proportion of interesting valuable compounds within the algae. Although a longer process, upstream knowledge (research in genomics, metabolomics etc.) is essential to provide solid knowledge-based solutions. Moreover, the EU already possesses a sound research basis but technology transfer should be strongly supported, besides investments and space. 2.3. High production costs Cultivating algae in the EU is costly today. This explains why most products are not competitive on the global market and confines them to niche markets. Strategies to be more cost efficient and to have more optimised processes can be deployed individually (to reduce energy and water consumption, increase automation and nutrient recycling, etc.), but globally, the following strategies are currently being implemented to reduce production costs: ●Upscaling algae production systems can reduce costs but would need more space and considerable investments. The latter could be achieved without any risk if the downstream market was secure and stable. Fluctuating market prices and the unstable position of niche markets make investments risky at a producer’s level. ●Developing advanced biorefinery technologies to valorise each fraction of the algae biomass can increase the global value of the incoming algae biomass and in effect the cost-effectiveness of algae cultivation. However, not all algae biomass fractions are marketable. Bringing more novel algae species to the EU market in line with the Novel Food Regulation needs to be continued (e.g. via the EU4Algae project). 2.4. Limited knowledge of market and consumers In the EU, algae-based products have been consumed for decades without explicit knowledge of the consumers. Today, consumer awareness towards natural ingredients and plant-based products is increasing, and has slowly expanded the diversity of other algae food and high value health products besides the simple low value texturisers. However, algae-based food is not traditionally consumed in the EU and there is a large proportion of consumers who are not ready or even willing to integrate algae in their staple diet. Awareness on exceptional nutritional benefits5,19,38,40 and low environmental footprint38,35 and acceptance of algae products should be raised to the EU citizens in order to boost the demand. At the moment, potential consumers have limited knowledge on how to prepare algae-based recipes, about the consumption of algae products, and on the potential risks that may arise due to the presence of certain compounds (for seaweed: iodine, heavy metals, inorganic arsenic), and simply where to buy products. The business-to-business markets are often unaware on potential algae uses ranging from animal feed to compostable or edible biopackaging, to algae-based textiles, tissues and pigments, cosmetics, or plant biostimulants to support the growth of organic agriculture practices. They are also often unaware on low environmental and carbon footprint of algae production and products. Besides social awareness and consumer acceptance to boost the demand, connections between suppliers and buyers need to be improved. For instance, harmonized prices and clear commercial channels to buy algae biomass could enable algae products to reach buyers who are willing to experiment with the products on untapped markets. 2.5. Limited knowledge on risks and impacts of an expanded algae production To ensure that the algae sector develops sustainably, it is important to understand potential impacts of a developing algae industry (as supported by the results of the Open Public Consultation that ended August 2021, see Figure Nr. 8 below). Besides the Life Cycle Analysis, which provides comparative scenarios indicating the process with highest environmental impact and steps how to act on them (notably used for microalgae production), more detailed and consistent measurements need to be performed, such as the impact on local biodiversity, environmental footprint and proposals for compensation measures (notably used for seaweed production). Figure 8. Areas that should be governed at the EU level (number of responses to the OPC). There is also a need to increase knowledge on environmental benefits of seaweed aquaculture, such as carbon and nutrients capture and carbon sequestration. Harmful impacts on local ecosystems, such as reduced genetic diversity need to be considered (have already been reported in Chile, Tanzania). Also, potential darkening of ocean colour (e.g. due to eutrophication) leading to higher heat absorption and hence ocean warming needs to be assessed. Therefore, more studies and monitoring programs are needed to better understand and assess potential negative effects and proposing risk mitigation strategies. The latter may help to increase the acceptance of algae products by consumers in the EU. 2.6. Fragmented governance framework Seaweed aquaculture at sea or algae cultivation on land need to comply with different national regulations (licensing, access to marine space, species to be farmed) depending on the EU Member States, EU rules (food safety, fertilising products etc), industry standards etc. Although scientists recommend not to shift species from one marine area to another or not to spread the same seedlings in different areas in order to prevent potential mono-clonal escapes replacing natural wild populations, such situations may happen. This may distort local genetic diversity. Access to marine space can be allocated to the aquaculture production, provided the national MSP allow it and the license is temporary for an agreed time frame. Licensing processes, including the validity duration of the license and its renewal terms, are managed entirely by the national authorities and vary significantly from country to country. The licensing process can be intermittent, multi-step and resource-intensive, which makes it a barrier for setting up new investments. Regarding more downstream legislation, there are differences between the EU Member States in terms of certain, non harmonised at EU level, food safety measures such as not exceeding iodine thresholds in algae biomass before commercialization. Such differences between countries have created discords between suppliers and buyers across borders and lead to commercial tensions.

3.Why should the EU act? 3.1. Legal basis and context The Treaty on the Functioning of the European Union (TFEU) provides for the following distribution of responsibilities between the EU and the Member States in areas relating to algae: 1) The European Union has exclusive competence with regard to the conservation of marine biological resources within the framework of the common fisheries policy (see Article 3 (1d) TFEU); 2) The European Union shared competence with the Member States in matters of agriculture and fisheries (including aquaculture, thus covering the production of seaweed, the common organization of the markets in fisheries) to the exclusion conservation of living marine resources (see Article 4 (2d) TFEU), and Union policy will contribute to pursuing objectives in the main areas of: -Common public health safety concerns for the aspects defined in the TFEU; -Consumer protection (Article 4 (2k) TFEU); -Environment (Article 191 TFEU). There is currently a lack of harmonized algae-related legislative framework between Member States. This section provides an overview of the EU regulatory framework applicable to algae from their production or collection to their processing into food, feed, pharmaceuticals, chemicals and other products. Some EU regulations are relevant for all types of algae, namely those that deal with aquatic resources, renewable biological resources and anthropogenic pressures on the environment. Other policies and regulations are only applicable to one phase of the value chain, such as the Common Fisheries Policy (cultivation or wild harvesting) or rules on food packaging, and various rules apply to specific products, e.g. additives in feed. Overall, algae industry needs to be aware of various rules and regulations (as outlined in this sub-heading and Annex 5). Product safety and consumer protection are the priority when considering bringing new algae products to the EU market. For organic algae, labelling and production, EU level rules are set up. In seafood, producers need to consider maximum allowed levels of iodine, heavy metals and other contaminants. In algae as foods also high concentrations of contaminants may occur, but so far occurrence data have been lacking to allow the establishment of maximum levels in food, in order to protect EU consumers against the health risks from those contaminants (in particular high concentrations of heavy metals) in algae. Maximum allowed levels are available for contaminants in feed and fertilisers. Obtaining health claims for algae-based foods may be an extensive process as strong substantiation of any health benefits is needed. In addition to the rules on products, the algae business is strongly impacted by the elements of the general regulatory environment such as agricultural/aquacultural subsidies, aquaculture licensing, public procurement criteria, tax schemes, and trade agreements. Needless to say, not every single rule will apply to every single algae producer or processor, depending on their production methods, final products and size of the operation, . For the cultivation of algae for food and feed, various legal acts are in place. Compliance with EU food safety legislation sets out basic legislative principles for algae products to ensure safe human nutrition and to protect consumer interests. Furthermore, new algae food products entering the EU market might fall under the Novel Food Regulationand would require authorisation by the European Commission, The Novel Food legislation applies to foods and ingredients that were not consumed significantly in the EU before May 15, 1997. As the algae industry is an emerging sector in the EU and demand for algae biomass is rising for a variety of products, new algae species will most probably need to get a Novel Food authorization before being allowed to enter the EU market and be included in the Union List of authorised novel foods. Macroalgae have a long history of usage in the production of thickening and gelling agents applied as additives in food, cosmetics, and pharmaceuticals. The Regulation on food additives regulates their use and contains a list of authorized food additives. It includes eight macroalgae-derived additives under codes E401-E407a. Commission Regulation on specifications for food additives further specifies the origin, composition, and usage of the accepted additives. Several novel or underutilized macroalgae species could be used for production of food additives, although they would not be accepted as food or food ingredients. In addition to the traditional macroalgae-derived thickening and gelling agents, macroalgae contain pigments, antioxidants, and bioactive compounds, the properties and potential applications of which are under active research. However, any novel macroalgae-derived phytochemicals intended for use as food additives, require an authorization before their entry into the EU market. The EU has, furthermore, issued a Recommendation on the monitoring of metals and iodine in seaweed, halophytes, and products based on seaweed (through a specific list of species). These monitoring data are needed to establish maximum levels on the basis of the ‘As Low As Reasonably Achievable’ principle, in order to limit the adverse health effects for consumers. Algae used in animal feed/feed additives do not need pre-market authorization, but do have to comply with regulation on feed hygiene, marketing of feed, undesirable substances in feed and feed additives. As mentioned earlier, the Commission shares competence with Member States in this regard. When used in pharmaceuticals, algae need authorization through centralized procedures, under the EU Medicine Agency. Algae used as sources of fine chemicals, botanical extracts and active substances or for speciality high-value applications in pharmaceutics and medicine fall under the main legislation for chemicals in the EU: the Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals). The Cosmetics Regulation (EC) No. 1223/2009 is addressing concerns for human health, and REACH - for environmental concerns of substances used in cosmetics. The EU Fertilising Products Regulation harmonises the rules for EU fertilising products, giving these products access to the EU single market. However, national legislations (with different rules) may apply in parallel, and regulate "national" fertilising products in national markets. Algae cultivation itself falls within the area of aquaculture (Article 34 of the CFP regulation), where the Commission establishes non-binding Union strategic guidelines on common priorities and targets for the development of sustainable aquaculture. Therefore, the inclusion of algae cultivation within multiannual national strategic aquaculture plans falls to the responsibility of Member States, along with regulating algae licensing, marketing and production requirements. In order to obtain the ‘organic’ label, algae producers need to comply with the Organic regulation and additionally require an Environmental Impact Assessment (EIA) with thresholds determined by each Member State individually. Furthermore, the EU encourages Member States to include algae objectives in their national/regional spatial plans under the Maritime Spatial Planning (MSP) Directive promoting sustainable development and encouraging coexistence of different sectors in the marine area. Finally, algae production can be integrated into other industrial activities, e.g. wastewater treatment and industrial CO2 capture. In this regard, relevant algae products can fall under the remit of the Waste Framework Directive (WFD) and specifically under End-of-waste criteria. A revision of the WFD is underway for 2023. Some of the main legal references related to the seaweed aquaculture are laid down in Figure Nr. 6 below.

Figure 6. Overview of legal acts relevant to seaweed aquaculture An elaborative overview of existing and forthcoming initiatives and explanation of their relevance to algae is provided in Annex 5. 3.2. Is it necessary for EU to act? The European Union can only act in areas according to a division of responsibilities set in EU treaties (See 3.1 above). The EU Blue Bioeconomy, including the algae sector, plays an important role in achieving European Green Deal objectives and Sustainable Development Goals (SDGs). A growing global population, exhaustion of resources, environmental pressures, and climate change, require a modified approach to our food systems. To overcome these challenges, new sustainable ways to feed a rapidly growing global population are essential. The European Commission’s Group of Chief Scientific Advisors elaborated in its 2017 “Food from the Oceans” advice how the ocean offers untapped potential to meet global food demand through direct food production or biomass harvest. The production and processing of food from the ocean, such as algae and other new marine resources can help provide sustainable food products, animal feeds and non-food products. The European Commission intends to play a key role in the development of a regenerative EU algae sector. As part of the Farm to Fork Strategy, the Commission aims to "launch a process to identify new innovative food and feed products, such as seafood based on algae"35. In addition, the Commission stresses the need for well-targeted support to the algae industry to develop its potential as a sustainable food system. Currently, the lack of harmonization between Member States poses obstacles to the rapid and successful development of an algae sector in the EU. These may be the licensing procedures, access to marine space including multi-use, spatial planning, carrying capacity of EU marine waters, competition between countries, access to algae seeds, guidelines around algae-origin biostimulants, organic production and labelling, traceability, origins control, and preserving, protecting and improving the quality of the environment, etc. Not taking action at this stage would mean a missed opportunity for Europe in terms of creating an algae industry sector creating new and quality jobs in coastal regions, helping to restore ocean health and biodiversity, making low carbon footprint products etc. Not improving the traceability of bulk biomass and algae-based products can create consumer suspicion on the products origin and production methods, which will hinder the downstream market and confine the products to niche markets (as it is today). Not ensuring environmental sustainability of up scaled algae production systems, through fundamental knowledge, is likely to lead to potential drawbacks on local ecosystems and create social controversy. By acting, the EU can seize the opportunity to address these potential drawbacks, and not only respond to the increasing demand for algae, but also provide a safe, sustainable (economic and environmental) and competitive resource for the growing EU and international market. 3.3. Would there be an added value of an EU action? Coordinated action at EU level is necessary to unlock the algae potential and to enforce environmental, health, food, social and economic benefits that algae sector will provide. In respect of the subsidiarity mentioned, the EU must thus act in those areas and across EU maritime regions. The goal is to integrate algae into the national policies, be thoughtful of the algae sector’s complexities and specificities, and promote its integration into internal markets. It is essential that the homogeneous political approach does not replace national policies, but complements them and harmonizes the rules on the use of algae as food and non-food products. Similarly, national legislation and licensing requirements necessary to carry out algae-related activities will have to be harmonized to facilitate intra-EU algae sector developments. Clear regulations in the sector would eliminate barriers to new investors and young entrepreneurs to enter the sector, and will increase its broader visibility and recognition. The growth of the sector will be fostered when new products are continuously developed and introduced into the market. This can be promoted through EU level actions by helping innovation and simplifying the authorization procedures for new foods. The improved labelling and European standards of algae and algae products would certainly lead to a better competitive position for EU algae producers and processors, compared to algae producers from outside the EU, and would push the request for products of EU origin. This would also establish consumer confidence in the products, and make it easier for producers to adhere to standards when labelling is done in a coherent way. 4. The EU Algae Initiative and its objectives One strong value added of a dedicated EU Algae Initiative lays in the coordinated supervision of the existing and additional actions listed in previous sections. The unlocking of the EU algae industry will indeed emerge from this system-level approach that will create synergies between this long list of complementary actions. This integration and coordination is key to ensure smart economic stewardship of EU budget by avoiding duplication and maximising knowledge sharing across these actions. The set-up of the Algae Initiative can be done in a cost-efficient way given that many of these actions are already planned, budgeted or already being implemented. The Algae Initiative can indeed: -Leverage existing programs and actions directly contributing to the algae agenda (cf section 5.1). EU4Algae can for instance be a powerful amplifying channel to engage the algae community and disseminate knowledge generated by the Algae Initiative. -Collaborate with adjacent EU programs that can also contribute to the algae agenda, for instance collaborating with EU4Ocean and their literacy and awareness campaigns to promote algae, or with Blue Invest to present algae companies to investors. -Officialise the “algae interest group” that exists across DGs and make it the network of focal points for the Algae Initiative -Activate DG MARE budget already validated in the Work Programme and that could be allocated to funding new actions listed in section 5.2 However, to make the EU Algae Initiative successful, some additional enablers will be required: 1.Clear allocation of Commission resources to play this coordination role across existing and new actions listed in this document, under the official mandate of the Algae Initiative, signalling to other DGs that the Algae Initiative will be in charge of creating synergies across them on algae-related topics and programs.

2.Engage with Horizon Europe to shape proposals aligned with the new actions proposed in section 5.2, as long as they are consistent with workstreams defined by Horizon Europe plan and roadmap. Assess possibility to unlock additional budget in 2023 and 2024 for additional actions from section 5.2 that cannot be funded and resourced by all other mechanisms listed above. 4.1. General objectives The main goal, and 10-year vision, is to unlock algae potential in the EU by increasing sustainable production, safe consumption and innovative use of algae products in the EU. Unlocking the algae potential in the EU by developing a thriving, strong and sustainable EU algae sector would contribute to strengthening the EU economy and limit dependency on imports of raw materials and nutrients from other parts of the world. The Covid-19 pandemic and recently started Russia’s military aggression against Ukraine reinforce the case for diversifying the production of key raw materials in the EU and making this production sustainable. A thriving EU algae industry would also be a key contributor to the European Green Deal and a flagship and source of inspiration for other industries to become more regenerative, innovative and socially exemplary, with thousands of good jobs created, notably in coastal communities. Positive impacts on the people, nature and the economy - described in the next chapter - would be unleashed and will contribute to addressing key ocean (acidification, biodiversity loss, pollution, habitat destruction) and socio-economic (self-sufficiency, unemployment, obesity and malnutrition etc.) challenges of our time. 4.2. Specific objectives Specific objectives to implement the general objective above are: 1.To upgrade and upscale regenerative algae cultivation and production throughout the EU 2.To develop and mainstream the markets for food and non-food algae applications. Algae food applications, for instance, algae sold in supermarkets and prepared in restaurants should become accessible to a wide variety of EU consumers. For non-food applications, EU-sourced algae should become a mainstream sustainable raw material and feedstock across various sectors ranging from animal feed, agriculture, textile, cosmetics, nutraceuticals, packaging, etc. Increasing the capacity of algae production (and hence the whole value chain) in the EU is essential for reaching such a target. Seaweed for Europe estimated (in their most ambitious scenario) that the European seaweed production capacity could reach 8 million tons fresh weight by 2030 (currently: 0.3 million tons fresh weight per year) to supply around a third of a EUR 9 billion European seaweed market. In this 2030 target vision, fundamental research in algae genetics, genomics and metabolomics has built the required knowledge for biodiscovery, strain selection and ability to stabilize the quality and increase the productivity of biomass, but also to increase the productivity of inherent compounds of interest (e.g. high value bioactives). Research and long-term monitoring programs deployed within production sites at sea (seaweed) have improved knowledge on environmental services of algae production regarding nutrients uptake, ecosystem services, and the role of algae as a nature-based climate solution. This research also provided conclusive information regarding the positive and negative environmental impacts, essential for guiding aquaculture and hence ensuring environmental sustainability of seaweed cultivation. Improved and new algae cultivation and processing systems and methods have been tested, validated and scaled, leveraging technological breakthroughs, for instance regarding biomass stabilization, full value transformation (e.g. via biorefineries) and technology integration (e.g. industrial symbiosis) to guarantee economic viability of the produced algae. Public and private capital would have been raised to fuel this research innovation and infrastructure development. In this target 2030 vision, algae would not be any more a niche industry in the EU: -Algae production would be siginificantly scaled up, and would be environmentally friendly and economically viable and sustainable; -Innovative products would be available on the market, in the broadest range of applications. -Algae products placed on the EU market would be safe and their health benefits would be substantiated, recognized and praised for (for food, feed and non-food applications); -The industry would develop in a socially fair and resilient way and would leave no-one behind. To deliver this ambitious (and sustainable) growth in EU algae production and new products development within the next decade, many structuring enablers need to be deployed across the theme of research, technology innovation, policy reforms, capital mobilised, improved governance and awareness and acceptance raising. 4.3. Operational objectives

To reach the specific objectives presented above, the following operational objectives have to be achieved. 4.3.1.Improve and harmonize governance and legal frameworks. Algae sector would benefit from harmonized governance throughout the EU, involving common legal procedures, monitoring and quality thresholds with the final goal to deliver an EU label guaranteeing safe and traceable biomass or algae-based products. Among others this objective implies development of common guidelines regarding algae cultivation and commercialization as well as integrate algae-related provisions into national governance frameworks (e.g. maritime spatial plans). For instance, development of centralized guidelines for new algae farmers in the Member States to be performed. Specific actions may look at addressing access to algae cultivation sites at sea (these diverge between countries) as well as at safe concentration limits of certain compounds (e.g. iodine) required before commercialization (also differ across the countries). Another example would be to draw an intra-EU policy on organic production of microalgae. Improved governance also implies improved licensing and access to space procedures, improved industry standards and necessary legal changes. 4.3.2.Support the improvement of business environment. Well-functioning and growing business landscape and environment are crucial for an effective growth of a regenerative algae sector. Some of the actions to implement under this objective are bringing more algae species to the EU market by considering industry collaboration for preparing novel food dossiers and by discovering species that are used as a traditional food in the EU Member States. Reorientation of fishers careers to regenerative ocean farmers through a pilot projects could be encouraged. Support could be provided to algae producers and transformers to attain existing EU quality labels, which can provide a price premium to their respective products and help to achieve economic sustainability. Implementation of the EU4Algae project will promote partnerships and knowledge exchange, will accelerate the development of a regenerative, equitable and climate-friendly algae industry in the EU by fostering stakeholder collaboration (for further details see sub-heading 5.1). 4.3.3.Increase social awareness and acceptance EU consumers and ordinary citizens often are not aware about the multiple benefits algae cultivation may bring ranging from marine ecosystem regeneration until creating low-carbon products and generating blue economy jobs. Social awareness of algae and algae products needs to be increased to boost the demand and knowledge of the EU Blue Bioeconomy sector through, for example, educational programmes at schools, seaweed cooking shows or by conducting a consumer behaviour and preferences analysis on algae products. 4.3.4.Closing knowledge, research, technological and innovation gaps Implementing this objective is key to succeed with implementing the general objective above. Algae sector in the EU has rather limited availability of algae-related data (production and socio-economic data)24,. There is a need to develop innovative equipment able to increase and stabilise productivity and quality levels such as large scale efficient and optimized production systems, automation equipment, monitoring probes with control command systems, nutrient recycling, etc. which can reduce unpredictable biomass loss but can also reduce labour costs. This equipment could be sound for downstream processes like biorefineries able to treat algae biomasses of macro- and microalgae. There is also a need to remove systemic innovation barriers and accelerate algae innovation and market access etc. 5.Ongoing and proposed policy actions The algae sector is currently a niche sector in the EU on a development trajectory given the advantages of algae products and consumer demand, e.g. algae foods. However, as described in Chapter 1 to unlock the algae potential in the EU Blue Bioeconomy, without compromising on sustainability and safety issues, a policy intervention to support and regulate the sector needs to be considered. This chapter describes and explains (1) existing and ongoing algae-related actions and (2) proposes a range of new policy actions structured around 4 specific objectives described above. As indicated earlier, algae industry sector is at the early development stages therefore there is no or very minor regulatory measures. The existing ones are very fragmented and mentioning in sectoral legal acts of “algae” is either minor or inexistent (see sub-heading 1.5 and Annex 5 for more details on the legal algae-related context). As the development of algae cultivation mostly falls within the remit of the aquaculture, which is managed by the EU Member States, currently there is minor scope for further legislative changes to support the development of algae sector. After a careful review of the potential legislative changes with algae sector experts, stakeholder groups (see the results of the stakeholder consultation in Annex 2 and 3) and based on collective knowledge of the Commission, a possible future amendment of the scope of the fertilising products regulation (Regulation (EU 2019/1009) to allow more algae related materials could be considered. However, any proposal for such an amendment should be duly supported and justified by an in-depth technical assessment of the market potential, the agronomic efficiency and the safety of certain algae materials when used in fertilising products. Existing and ongoing algae-related actions This sub-heading describes the ongoing support to the algae sector, which is provided not in a targeted strategic way, but more as part of the wider Green Deal Strategy. By continuing “business as usual” algae-related calls could be still released, funded, contracted and implemented, while the regulatory framework could be improved e.g. as part of Sustainable Blue Economy Strategy. To understand how the algae-sector will look like in 3-5 years without the Algae initiative, we have to throw light on the expected outcomes of the current algae-related initiatives that are in an implementation and planning phase. Consequently, in the following paragraphs, the most important initiatives that can influence the algae sector (2021-2022) are presented. These initiatives (non-exhaustive list) are: EU4Algae, current EU funding calls (Horizon 2020, Horizon Europe, BBI-JU, EMFF, ERDF, etc.), business support mechanisms (Blue Invest, private financing, etc.), initiatives that contribute to the knowledge base, like the Commission’s Knowledge Centre for Bioeconomy, the JRC’s biomass study, as well as specific algae-related studies, ocean literacy and awareness raising initiatives etc. 5.1.1. European Algae Stakeholder Forum (EU4Algae) EU4Algae project was kicked off in February 2022 to run for three years. The project aims to support EU algae innovation and market access, contributing to increasingly sustainable production of algae, ensuring safe consumption and boosting innovative use of algae and algae-based products in the EU. EU4Algae consortium consists of some leading European algae organizations that already have a network of some 300 algae sector stakeholders. EU4Algae contractor will deliver the following (non-exhaustive list): ·Create an EU-wide collaborative algae sector network – EU Algae stakeholder forum (EU4Algae) ·Review and compile existing national incentives, best practices and procurement mechanisms facilitating the development of algae businesses and increasing demand for algae products ·Examine current national policies and forward planning for potential introduction of financial incentives on the price of algae and algae-based products in the Member States

·Compile information on business support actors, initiatives and mechanisms in the Member States to support collaboration and broader knowledge sharing at the EU level ·Will examine future EU research and innovation needs to enhance the potential of algae, including the nutritional benefits of algae, the development of new algae-based products, new business models and emerging algae applications at the initial phase of research ·Consider setting up an online Algae Intelligence and Innovation corner on the EU4Algae website with an updated periodic list of EU funding sources for algae-related projects ·Support the addition of new algae species to the Novel Food Catalogue ·Aggregate actual algae-related funding calls to make them available for the algae sector stakeholders ·Review and analyse state of the art knowledge on quantifying ecosystem services of algae-based on bioremediation and carrying capacities of EU waters for seaweed aquaculture and marine permaculture, and impacts of cultivation, restoration and harvesting on marine ecosystems. 5.1.2.Algae-related EU funding calls A number of existing funding calls are already supporting the development of algae sector. Among others, these are Horizon 2020, Horizon Europe, BBI-JU/CBE-JU calls, blue economy window calls (EMFF), ERDF and other EC funding calls already awarded or programmed. While EU4Algae project mentioned above will aggregate the actual funding calls and make them available to the stakeholders, below are few examples of recent calls. One of the 5 key action areas of the EU research framework program Horizon Europe is the mission “Restore our ocean and waters by 2030”. The objective of this Mission is to restore by 2030 the health of one of our most precious shared resources: our ocean and waters. Alongside Horizon Europe the Mission also mobilises the European Maritime Fisheries and Aquaculture Fund (EMFAF), InvestEU and other EU programmes. Together, they will provide around €500 million in seed funding during 2021-2023. Along with Member State contributions and private funding, this will create a big and lasting impact. In a nutshell, this means to: (1) protect and restore marine and freshwater biodiversity and ecosystems, (2) eliminate pollution, and (3) make the blue economy carbon-neutral and circular. So far there have been released or planned following funding actions where algae are explicitly mentioned in the description or scope: ·Unlocking the potential of algae for a thriving European blue bioeconomy ·Building alternative protein-friendly sustainable and healthy food environments ·Innovative food from marine and freshwater ecosystems ·Filling knowledge gaps on nutritional, safety, allergenicity and environmental assessment of alternative proteins and dietary shift ·Novel, non-plant biomass feedstock for industrial applications ·Photosynthesis revisited: climate emergency, “no pollution and zero-emission” challenge and industrial application ·Environmental services: improved bioremediation and revitalization strategies for soil, sediments and water Circular Bio-based Europe Joint Undertaking (CBE JU) – the successor of Bio-based industries Joint Undertaking (BBI JU) will launch the algae-related calls (Annual Work Programme 2021-22) on 22 June 2022. BBI-JU has funded between 2014 and 2020 some ten algae-related projects. Some examples are provided below. SPIRALG was a successful aquatic biomass project, aiming to demonstrate the sustainable feasibility of biorefining of EU produced Spirulina biomass in the agro-food and health sectors. The REDWine project will demonstrate the technical, economic and environmental feasibility of using the CO2 rich gas generated during the red wine fermentation and winery liquid effluent to support the production of Chlorella biomass and extracts. The SCALE project (2021-2025) will build and operate a first-of-its-kind flagship plant producing ingredients with high nutritional value derived from the untapped microalgae diversity, for food, food supplements, feed and cosmetics sectors, through economically-sound processes and in an environmentally friendly way. ALEHOOP project (2020-2024) will demonstrate - at pilot scale - the feasibility of recovering low-cost dietary proteins from algae-based and plant residual biomass sources, namely seaweed and the by-products of vegetables production using biorefineries. MULTI-STR3AM project (2020-204) will develop a sustainable multi-strain, multi-method, multi-product microalgae biorefinery integrating industrial sidestreams to create high-value products for food, feed and fragrance. NENU2PHAR project (2020-2024) will develop a viable sustainable and biodegradable alternative to the existing petrochemical-based plastic. European Maritime and Fisheries Fund (EMFAF) has funded a number of algae-related projects. These projects cover a range of different algae related topics and target different ways to promote the sustainable algae sector in the EU. For example, the AlgaeDemo project aims to demonstrate large-scale seaweed cultivation at open sea and quantify the environmental effects of seaweed cultivation. The Biogears project supports the eco-friendly offshore aquaculture sector by developing prototypes of biogears for use in the mussel and seaweed sector. To promote the sustainable production of biopesticides for agriculture produced from microalgae biomass, EMFAF funds the innovative ALGAENAUTS project. The objectives of the KELP-EU project are to enable the EU blue circular economy through innovative, sector-leading seaweed biorefinery. EMFAF funded Algama to launch a project named ‘Seafood Algternative’ aimed at producing fish substitute from algae to develop the algae sector and to preserve marine life. Additionally, the ULVAFARM project was funded to promote large scale sea cultivation of green seaweed. Besides, the AFRIMED aims to develop, implement and promote a protocol to restore damaged pl forests in the Mediterranean Sea.

EIT Climate-KIC is a Knowledge and Innovation Community (KIC), working to accelerate the transition to a zero-carbon, climate-resilient society. To achieve above Climate KIC features innovative algae start-ups (e.g. Swedish algae factory), success stories (Microalgae biorefinery 2.0 project) or innovations (MiAlgae project) EIT Food accelerates innovation to build a future-fit food system that produces healthy and sustainable food for all. EIT Food invests in projects, organisations and individuals that contribute to the healthy and sustainable food system. It unlocks innovation potential in businesses and universities and create and scale start-ups to bring new technologies and products to market. It also equips entrepreneurs and professionals with the skills needed to transform the food system, and educate and inspire the next generation. The forthcoming 2022 call, among others, includes the focus area Sustainable aquaculture aiming to promote new emerging sustainable production systems and aquaculture species and will cover adaptation of existing systems to new species or production of species in currently underexploited areas e.g. to scale up of systems for production, harvest, and processing of seaweed. ·Innovative food from marine and freshwater ecosystems ·Filling knowledge gaps on nutritional, safety, allergenicity and environmental assessment of alternative proteins and dietary shift ·Novel, non-plant biomass feedstock for industrial applications ·Photosynthesis revisited: climate emergency, “no pollution and zero-emission” challenge and industrial application ·Environmental services: improved bioremediation and revitalization strategies for soil, sediments and water 5.1.3.Strategic guidelines for the sustainable development of EU aquaculture The updated “Strategic guidelines for the sustainable development of EU aquaculture” (2021) , include recommendations for the development of alternative aquaculture and food systems, incl. algae, in multi-annual national strategic aquaculture plans for the next period (2020-2030) and simplification of administrative procedures, mostly regarding permit application processes. The Strategic Guidelines have identified the challenges and obstacles for algae production in the EU due to complex and not harmonised legislation and propose solutions for national countries to overcome these. The EMFAF programmes will support Member State’s efforts to develop sustainable aquaculture, including alternative aquaculture sectors, in line with the EU strategic guidelines during the 2021-27 programming period. The programmes’ strategy and actions are assessed to ensure they address the specific needs of the sector and for consistency with Member states’ multiannual national strategic plan, as aligned with the EU strategic guidelines. The suggested solutions include: simplification, streamlining and harmonising, where possible, of legislation and administrative guidance on aquaculture for new licences or licence renewals; a ‘one-stop-shop’ system for aquaculture licences; longer-term licensing, include an obligation to monitor report data, and sanctions for non-compliance, including licence revocation. Strategic guidelines have also stressed the importance of coordinated spatial planning principles and have listed a scope of topics the planning has to consider for algae aquaculture: 1.The development of offshore algae farming, special areas for organic aquaculture and the integration of suitable aquaculture activities into protected areas, e.g. Natura2000; 2.The development of combined forms of aquaculture, algae with mussels and fish – IMTA, and seek for synergies and multi-use of space at sea, e.g., combining offshore wind parks and seaweed. 3.Promote algae (micro- and macro-algae) ecosystem services including in ponds and wetlands; 4.The adaptation of algae cultivation to climate change and mitigation of climate change impacts (e.g. carbon capture) 5.1.4. Algae business support mechanisms The Commission have developed certain business support mechanisms where algae industry could benefit from. Two of the existing ones are outlined below BlueInvest is up and running and aims to boost innovation and investments in sustainable technologies for the blue economy, by supporting readiness and access to finance for early-stage businesses, SMEs and scale-ups. It is enabled by the European Maritime and Fisheries Fund. Among other actions, Blue Invest has compiled a project pipeline that currently lists 12 micro- and macroalgae related projects. BlueInvest organises regular pitching events for SMEs in front of investors to increase the chances of getting funding. Algae projects have been featured quite remarkably e.g. the BlueInvest Info day 28 March 2022 includes pitches of 4 algae companies and annual the Algaeurope 2021 conference included the BlueInvest session with pitches of 5 algae companies. Aquaculture Assistance Mechanism (2022-2024) will support in the implementation of the EU strategic aquaculture guidelines by providing logistic, administrative and technical support and by enhancing cooperation between Member States and stakeholders for the development of sustainable aquaculture in the EU (2021-2030). This includes the support to the seaweed aquaculture and to the promotion and development of the Integrated Multi-Trophic Aquaculture in the EU Member States. 5.1.5.The European Commission’s Knowledge Centre for Bioeconomy

The Knowledge Centre for Bioeconomy is a European Commission initiative on better knowledge management for policymaking on the bioeconomy. It is coordinated by the Commission’s Joint Research Centre (JRC). It pulls together knowledge and expertise on different elements of the bioeconomy, including algae and from different sources in order to assess the status, progress and impact of the bioeconomy and support science-based policy making. 5.1.6.Algae related studies and projects Apart from the EU4Algae, mentioned above, some other studies contribute to the development of algae sector (non-exhaustive list): 1.Shellfish, Algae and Nutrients (2022-2023/4) will assess the potential of shellfish and algae to recycle nutrients and to estimate the greenhouse gas emissions generated by their production, will develop digital maps that must provide complete coverage of EU seas. 2.Algae & Climate (2022-2023) will estimate the nutritional yield of various algae species, the proportion of an animal feed that can be displaced by algae, the costs and greenhouse gas emissions of algae production benchmarked against land-based crops, the land area that could be used for inland production of algae. 3.The JRC’s Biomass Mandate aims to provide data, models and analyses on EU and global biomass supply and demand and its environmental, social and economic sustainability. It covers all sources of biomass, including from algae and all uses. 5.1.7.Ocean literacy and awareness raising Supported by the European Commission, the European Ocean Coalition (EU4Ocean) connects diverse organisations, projects and people that contribute to ocean literacy and the sustainable management of the ocean. The coalition is made up of three components: a Platform for organisations and individuals engaged in Ocean Literacy initiatives, a European Youth Forum for the Ocean and a Network of European Blue Schools. During its third year of the implementation, EU4Ocean is becoming a reference forum for Ocean Literacy in Europe. Public engagement in Ocean related themes e.g. in schools, exhibitions, conferences etc. have been existing for years, but now there is an umbrella for European Ocean Literacy. Gathering many actors in Europe (research organisations, youth, schools etc.), the benefit for the algae sector is tapping into a huge network of local “influencers”, and people working with the end-users of algae products. Algae offers huge opportunity for food, feed, pharmaceuticals, biopackaging, etc. but these opportunities often are not known to civil society. Co-developing awareness and dissemination projects with these local actors (translators) would benefit the algae sector in the long-term.” Taste the ocean is a campaign from the EU with top chefs across Europe to encourage consumers to buy and enjoy sustainable fish and seafood. Cooking with seaweed will be explored during the next episodes of the #TasteTheOcean campaign. Supported by the European Commission, Euronews have monthly ‘’Oceans’’ episodes featuring many Blue economy and ocean related aspects. Two episodes so far have already featured algae as a sustainable future alternative. 5.1.8.Algae related industry standards European Standards are needed to assure safety of algae products, to ensure that products and materials are tailored-made for their purpose, promote the interoperability of products and services, facilitate trade by removing trade barriers, promote common understanding of a product etc. To develop algae-related standards the European Committee for Standardization (CEN) has established a dedicated technical committee CEN/TC 454 – Algae and Algae products. The committee has a work in progress and so far has delivered a range of industry standards and technical reports. Further development of necessary standards is important for successful development and scaling up of the algae industry and in particular a common harmonisation with International Standardization Organization (ISO), FAO and other International associations (ABO, ISAP) on that matter. 5.2. Coordinated additional enablers – new proposed policy actions Annex 1 lists additional proposed policy actions taking a systems approach, i.e. addressing in parallel different levers to boost a sustainable EU algae sector. These are cost-effective actions bucketed by themes around improvement of the governance framework, improvement of business environment, social awareness and acceptance, knowledge, research, technology and innovation as well as technology transfer. These actions are meant to be performed in parallel. They will require additional resourcing to be delivered and implemented successfully (funding and staffing), and most importantly to be piloted in a coordinated fashion so the compendium of algae actions contributes to a meaningful, integrated objective under the EU Algae initiative. 6.Conclusions and recommendations A thriving EU algae industry may become a key contributor to the European Green Deal and its flagship initiatives: decarbonisation, zero pollution, circularity, biodiversity, sustainable food. The sector may also become a source of inspiration for other industries to become more regenerative, innovative and socially exemplary, with thousands of high quality jobs created, for instance, in coastal communities. Recent Commission-led initiatives like the new approach for a Sustainable Blue Economy and the EU Strategic Aquaculture Guidelines recognize the potential of algae. According to the evidences provided in this document, algae sector has a huge potential in the EU. To unlock the algae potential there is a need to upscale regenerative algae cultivation and production throughout the EU, and to develop and mainstream the markets for food and non-food algae applications. Once the above is achieved the EU security of supply of algae biomass, strategic autonomy from imports and smooth functioning of the algae sector will be ensured. However, the broad range of problems (outlined in the heading 2) limits development of EU algae sector. A number of ongoing actions (listed in sub-heading 5.1 above) contribute to a certain extent to the development of the EU algae sector, but not in a coordinated manner. A coordinated approach is needed where existing actions are supplemented by additional policy actions taking a systemic approach.

Specific attention should be devoted to proactively addressing potential concerns of EU citizens regarding environmental sustainability of large scale-seaweed cultivation and food safety of algae products (contaminants, iodine, bromine, etc). Recommendation: Based on the evidences outlined above, it is recommended that the Commission elaborates and adopts a cross-cutting EU Algae Initiative that (1) takes into account and brings forward best available science, knowledge, data and practices; (2) considers and proposes realistic enablers for algae sector to take off, (3) integrates existing algae-related actions; (4) addresses potential environmental and food safety concerns, (5) raises awareness and acceptance of algae products in the EU.

1.ANNEX 1: Proposed policy actions with explanations Table below provides a list of the suggested policy actions structured around 4 action areas: Action area 1: Governance framework and legislation Guidelines Policy actions proposed Implementation Responsible body 1.The Commission in close collaboration with relevant stakeholders will develop a new algae farmers toolkit Why: a centralized toolkit set by the EU are useful for new algae farmers (those who start new business or intend to change from e.g. fishing activities to algae cultivation) and to better understand development of new regenerative algae production farms. The toolkit will be a practical guide for the development of new regenerative algae farms throughout the entire value chain, including cultivation, harvesting, processing, logistics, labelling of algae and algae based products as well as licensing and permits, existing standards, Best Available Technologies (BAT), good practices and other relevant aspects for seaweed, microalgae and cyanobacteria. How: 1.By contracting the establishment of a new algae farmers toolkit 2.Tailoring the toolkit to each EU marine region European Commission (MARE), Industry National procedures and governance Policy actions proposed Implementation Responsible body The Commission will call Member States authorities to simplify national licensing procedures and governance for algae cultivation Why: Current licensing procedures often are fragmented, complex, labour-intensive and lengthy. Simplification is needed to facilitate and speed up setting of algae cultivation, integrated multi-trophic aquaculture, multi-use or marine sites and co-exploitation of farming sites by multiple entities. Besides, improved transparency and efficiency of the procedures is needed. How: by (1) making inventory of existing national and regional algae licensing and permits procedures across the Member States; (2) setting a roadmap with recommendations for necessary governance changes; (3) implementing necessary governance (or legal changes) tailored to the specific Member States and maritime regions. Commission will support this process by compiling best practices and existing procedures across the Member States with the aim to streamline and harmonise national regulations. Member States, European Commission 2.The Commission will work with Member states to facilitate access to marine space, identify optimal sites for seaweed farming and include seaweed farming and sea multi-use in the Maritime Spatial Plans Why: To identify gaps and enabling factors for seaweed farm development in multi-use settings and to consequently facilitate establishment of such farms in multi-use of marine space settings, which is currently difficult. Use of existing monitoring data to identify suitable sites for macroalgae and multi-use systems. How: 1.As a follow-up to the current study of the EU MSP Assistance Mechanism on how Member States have dealt with (low-trophic) aquaculture and sea multi-use in their Marine Spatial Plans to commission a follow-up analysis (study) on how/whether seaweed farming is considered and supported in national MSPs (e.g. via the Blue Forum activities). 2.Based on the new acquired knowledge e.g. findings of “Shellfish and Algae” study, analyse optimal conditions, develop criteria for optimal sites to include into national MSP plans. European Commission (MARE) Member states Standards Policy actions proposed Implementation Responsible body 3.The Commission will work with the European Standardization organization (CEN) to develop standard test, quantification and extraction methods for algae ingredients and contaminants Why: Algae contain a range of useful active elements in the biomass, but their detection, quantification (e.g. chlorophyll) and consequent extraction (e.g. lipids) is challenging due to large range of testing methods. Food safety are some of the key concerns of European consumers as regards algae related products. A European standard is needed to establish a unified method to detect contaminants (incl. biofouling), iodine and heavy metals. How: By developing European standards with test, quantification and extraction methods for active ingredients in algae such as phycobiliproteins, fatty acids, polysaccharides, amino acids, proteins, lipids, vitamins, for detection and quantification of contaminants. European Commission (ENER, MARE) CEN 4.The Commission will work with CEN to develop algae biofuel standards and a certification methodology for algae-biofuel products to be used in various transport sectors, particularly heavy road, aviation and maritime transport; Why: Algae contain active elements in the biomass, like lipids, that makes them feasible for producing biofuels. A European standard is needed to establish unified methods for extracting biofuels and developing relevant certification methodology. How: By developing relevant European standards within the CEN/TC 454 - Algae and algae products. European Commission (ENER, RTD), CEN EU legislation Policy actions proposed Implementation Responsible body 5.The Commission will assess the market potential, efficiency and safety of algae materials when used in fertilising products and the need for amend Regulation (EU) 2019/2009 on EU Fertilising products to include algae materials Why: (1) to facilitate use of materials recovered from algae grown on waste , or from algae which have themselves a waste status, in production of EU Fertilising Products (2) to allow the use of certain cyanobacteria in the production of EU fertilising products How: 1.To clarify status of waste-grown algae whether algae grown in wastewater, or with waste input (e.g. off gas CO2 or ammonia) are considered to be a “waste” or “product” and identify “end of waste criteria” for algae with waste status 2.Review the exclusion of cyanobacteria [in Component material category (CMC) 2] in the regulation 3.Clarify the status of algae collected from the sea and identify “end of waste criteria” for algae collected from the coastVI. Develop “end of waste” criteria for recovered materials used in the production of fertilising products. European Commission (GROW) Action area 2: Supporting the improvement of business environment Policy actions proposed Implementation Responsible body 6.The Commission will work with algae industry to examine algae market and propose market stimulating mechanisms to support and promote the technology transfer from research to market Why: For algae sector to take off, a targeted support is necessary to tackle existing bottlenecks and facilitate procedures, access to funding, to obtain necessary knowledge, to develop technologies, boost innovation etc as well as support technology transfer from research to market How: the Commission will work with industry (e.g. via the EU4Algae platform) to identify feasible market support mechanisms and promote their implementation 7.The Commission will prepare specific guidance to promote replacing fish-based feed with algae-based feed Why: 18 mio tons of wild fish is processed into fish oil/meal for animal and fish feed, which algae may (partly) replace. How: The following actions could be examined as part of potential policy research/study: (1) Introduction of ambitious EU forage fish dependency ratio (FFDR) for aquaculture, combined with requirements to maintain the nutritional and health quality of the farmed fish, and respect the environmental objectives of the EU’s 2030 Biodiversity Strategy and Farm-to-Fork Strategy. (2) Introduction of financial incentives for the uptake of algae-based fish feed . (3) Make the “ALARA (as low as reasonably achievable)” principle more ambitious, which is essential to further lower the EU limit values for dioxins and Polychlorinated biphenyls (PCBs). (4) Introduction of minimum blend-in targets for sustainably-sourced, non-fish-derived EPA + DHA in fish feed. (5) Introduction of algae-based fish feed as a sustainable activity in the future Sustainable Finance Taxonomy for sustainable fisheries and aquaculture (in future revisions). European Commission, Industry 8.The Commission will work with algae industry and Member States to: ·to identify valid and safe alternatives for use of nutrients and CO2 from various sources for microalgae cultivation and organic certification ·promote extraction of nutrients from algae biomass ·support life cycle assessment of environmental and climate impact of algae cultivation and production by considering the development of monitoring methodologies and indicators to measure environmental impact and sustainability from seaweed cultivation Why: use of algae for cleaning wastewater from nutrients and recycling of nutrients from algae has big potential but is not well-explored in the EU. Why: There is currently limited options of using different sources of nitrogen, phosphorus and CO2 to use as fertilisers in closed microalgae cultivation processes. Why: A quality accounting of the marine ecosystem services and potential impact of seaweed cultivation on these ecosystems will help to track the performance of the sector towards achieving its sustainability goals . Algae cultivation, if done properly, has a regenerative impact on the surrounding ecosystems. How: To clarify regulatory questions related to the “waste” status of inputs that are used to feed algae. Algae production can ensure synergy between wastewater treatment and nutrient removal, carbon capture and use of waste heat, and production of valuable materials and biomass energy. But only if regulatory questions are clarified (especially relating to waste-status of inputs used to “feed” algae)59. Consider the opportunities to develop test sites for removal of nutrient from side-streams. Demonstrate industrial symbiosis concepts to pilot phase, exchanging and recycling carbon, nutrients and energy among industrial activities (to consider existing best practices e.g. Kalundborg and Sötenas Symbiosis centres). To consider floating technologies for the cultivation of emergent macrophytes and halophytes as one option to remove nutrient from eutrophicated waters. Study the impact of floating wetlands not only on nutrient removal but also on other pollutants such as the bacterium Escherichia coli. How: Based on the current work in progress (EGTOP, EABA working groups) and in close collaboration with relevant stakeholders (e.g. DG AGRI), EU4Algae to prepare recommendations for economically and legally viable nutrients and CO2 alternatives for organic microalgae cultivation How : 1.To contract a study compiling existing monitoring good practices, methodologies and indicators of potential environmental impact from seaweed cultivation. Develop a system to ensure environmental monitoring practices and setup standards for obligatory monitoring and data for new farms Industry, European Commission (AGRI, MARE, SANTE), EMODNET 9.The Commission will fund pilot project(s) supporting reorientation of fisher’s careers to regenerative ocean farming Why: Steady decline of fishing opportunities and degradation of marine aquatic habitats could be turned around, when fishers could switch from extracting marine activities to marine farming and marine habitat regeneration. This would provide new career and employment opportunities in coastal regions and contribute to regeneration of coastal marine habitats and fish resources. How: To contract pilot projects and to provide financial, training and infrastructural advice mechanisms to aid in the organization of the pilot projects through the existing funding mechanisms, such as EMFAF and Horizon Europe. European Commission (MARE) 10.The Commission will enhance the targeted support to innovative SMEs and projects in the algae sector through the scaled-up activities of the BlueInvest platform Why: Many algae start-ups and SME would benefit from public financing to de-risk their operations and attract private investors. Also, algae entrepreneurs would benefit from mentoring and acceleration/ incubation services to stress test their business models and help them professionalise their fundraising and access networks of private investors. How: This may include the delivery of market intelligence and strengthening capacities of investors to mobilise capital for high potential businesses/technologies, new coaching packages on sustainability for SMEs, and technical assistance to accelerate the closing of deals. European Commission (MARE) 11.The Commission will facilitate cooperation at sea basin and macroregional scale by promoting innovative interregional partnerships (e.g. Blue Bioeconomy with focus on algae/shellfish), through the implementation of Smart Specialisation Strategies and the dedicated 3S platform on Sustainable Blue Economy Why: Algae cultivation is currently negligent in the EU and its development needs to be supported. Growing conditions, species, national procedures etc are different across EU maritime regions and countries. Improved collaboration at the macroregional scale would help to better coordinate algae sector development efforts. How: By developing Smart Specialisation Strategies European Commission (MARE) Action area 3: Closing knowledge, research, technological and innovation gaps Knowledge Policy actions proposed Implementation Responsible body 12.The Commission will integrate algae sector knowledge into the EU aquaculture assistance mechanism Why: As part of the proposed dedicated EU Aquaculture Assistance Mechanism, it is important to distinguish algae sector knowledge to facilitate easy access to information for relevant stakeholders, including Member States authorities. How: By implementing algae as an important aspect of the EU aquaculture assistance mechanism, to be, for example, included under: ·Pillar 1 (website development): include a chapter dedicated to algae; ·Pillar 3 (knowledge base development): consider a prominent place for algae; ·Pillar 4 (technical expertise): consider a short background paper on algae; ·Pillar 5 (trainings, conferences and workshops): algae topic (e.g. IMTA) to be included at one of the planned events European Commission Aquaculture Assistance Mechanism 13.The Commission and relevant stakeholders will perform a study to gather better knowledge on the seaweed climate change mitigation opportunities (e.g. via seaweed cultivation and seaweed forest restoration) and role of seaweed as blue carbon sinks Why: Algae’s potential to sequester carbon can potentially benefit the business case for algae production if carbon sequestration can be rewarded financially or otherwise. Why: algae use soluble carbon, phosphorus and nitrogen to grow, thus removing them from natural environments and consequently reducing ocean eutrophication and acidification. But the development of environmental services and market-based instruments is limited by the lack of solid data and knowledge as well as monetarization methods for services in relation to eutrophication and acidification. How: By contracting a study to examine the following: ●improving policy and legal arrangements to incorporate blue carbon as natural climate solution ●reviewing and investigating financial approaches and accounting tools for emissions and sequestration of greenhouse gases by algae and how it is affected by cultivation and use ●improving stewardship by incorporating indigenous knowledge and values; ●clarifying property rights; developing technologies (e.g. sensors) and computational tools (e.g. artificial intelligence, block-chain) for measuring blue carbon sequestration at low cost; and improving our understanding of lesser-known aspects of the blue carbon cycle (e.g. seaweed contributions). How: To contract a study, preferably accompanied with real life data gathering from algae production systems, to 1. Obtain data on how much carbon and nutrients are taken up by seaweed during their growth process. Study shall gather information on available carbon sequestration projects and data on exact carbon amounts sequestered in seaweed aquaculture and make scenarios based on life-cycle approach to showcase impacts. 2. Explore strategies for recycling industrial side-streams containing soluble mineral nutrients, like nitrogen and phosphorus e.g. from fermentation, food production, aquaculture, or anaerobic digestion activities, and also reusing captured CO2 produced by industrial activities, e.g. power plants, CHP, cement industry, food fermentation etc., to “feed” / ”fertilise” algae production. 3. Explore the possibility to create a CO2 framework that contains mandates and economic and other incentives supporting development and deployment of algae-based technologies that upcycle industrial CO2 for production of energy, materials and food. Examples for better regulation of CO2 emissions include introduction of a carbon tax and a functional EU ETS. 4. Explore the potential to develop nutrient trading systems that include nutrient uptake by algae by commissioning a review study, examining practices such as the NutriTrade platform. 5. Develop a study to analyse existing and proposed (if any) compensation mechanisms and possible business models, and also assess the role of private sector and NGOs and get them involved, e.g. municipalities, industry, foundations. European Commission, Member States 14.The Commission, in collaboration with research and academia will prepare guidance for a EU-wide approach for conserving seaweed biodiversity by maintaining and documenting European seaweed strains in a centralized biobank’s network or databank Why: Transition from decentralized, often poorly documented algae stock cultures to a centralized, easily accessible and open access databank will help promote food security and biosecurity, conserve biodiversity under the threat of climate change and prevent the extinction of local strains. How: By launching a study or project 1.To identify main organization(s) able and willing to become centralized seaweed biobank organization (including IT capacity plus a seaweed scientists working together) 2.To elaborate a pathway of setting up a centralized network made up of regional biobanks, connected in a network to the centralized databank. The biobanks could be organized by regions (e.g. Baltic, North Sea, Iberian Sea, Norwegian Sea, Irish / British, Arctic, Mediterranean). 3.To follow two related objectives: (1)biobanking for applied purposes e.g. cultivation (at sea, in tanks), research, (2)Restocking, biodiversity conservation – identifying species and areas of high risk and major ecological importance European Commission Academia 15.subject to European Food Safety Authority advice start discussions on the establishment of maximum levels of contaminants and iodine in algae and/or the adoption of a new monitoring Recommendation for algae species for which insufficient occurrence data for contaminants are available, in order to allow the establishment of maximum levels. Why: currently no maximum levels of contaminants and iodine and algae are set as well as no unified monitoring procedures are in place. This leads to very fragmented situation due to insufficient occurrence data in the Member states. How: when better monitoring data are available, proper examination and discussions with engagement of appropriate stakeholders will help to establish maximum levels and possibly adopt a new monitoring regulation European Commission, Member States 16.The Commission and Member States will study existing monitoring schemes and available data of seaweed harvesting from wild and beachcast on the EU coasts Why: Wild harvesting of seaweed and beach-cast collection are important business activities which will remain a good source of biomass and economic opportunity for various applications, knowledge development, economic activities e.g. combined with coastal tourism, stewardship for native species and biodiscovery. However, wild harvesting needs to be properly monitored to remain sustainable and even regenerative for natural ecosystems. How: To study and evaluate existing wild seaweed harvesting and beached seaweed collection practices, species, marine regions, data monitoring schemes, etc. The study should foster a joint interpretation of targets set by relevant EU Directives (Natura 2000, WFD, MFSD etc.) with regard to “harvesting” marine resources (e.g. macroalgae, beach cast). The study will provide conclusions and recommendations for sustainable harvesting and beachcast collection of seaweed, broken down by species, marine regions, collection/harvesting methods and valid mechanisms to gather real data on harvested and collected seaweed amounts. European Commission Research Policy actions proposed Implementation Responsible body 17.The Commission will support via Horizon Europe and other EU research programs the development and innovations on new and improved algae processing systems and novel production methods for high-value compounds traditionally sourced from algae (e.g. biorefineries, precision fermentation, cell-free systems), processing algae into circular biobased products for multiple applications Why: The potential of biorefinery to process the algae in (multiple) valuable products is not fully used. Lab-scale experiments with biorefineries are often not up scaled and never realize full transition from experimental research to commercial uptake. Microalgae cultivation in photobioreactors has high potential but to scale up the production, further costs reduction and energy saving technologies are needed. How: By taking stock of existing R&I projects to identify specific development and innovation needs in algae processing that include for instance: 1.Logistics, pre-processing/pre-treatment 2.Lessons learned from cross-cutting macro- and microalgae value chains. 3.Develop concepts to scale up biorefineries on boats on de-centralised/centralised processing. 4.Robust systems that can handle seasonal fluctuations and multiple seasonal streams of biomass. 5.Processing of seaweed beach-cast and other microalgae for production of biogas and digestate through anaerobic digestion. 6.Promote open access pilot-sites for prototyping and testing at scale and couple them with SME innovation vouchers and mentoring services e.g. Smart Pilots, Alliance etc. 7.To look at the energy-saving technologies and strategies, as well as scale up and cost reductio