COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a COUNCIL REGULATION on the Clean Sky 2 Joint Undertaking
Date: 2013-07-10
Institutions: European Commission
Subjects: European Joint Undertaking, air transport, greenhouse gas, intelligent transport system, pollution control measures, public-private partnership, sustainable development













EUR-Lex - 52013SC0258 - EN











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52013SC0258

COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a COUNCIL REGULATION on the Clean Sky 2 Joint Undertaking /* SWD/2013/0258 final */









COMMISSION STAFF WORKING DOCUMENT
EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT
Accompanying the document
Proposal for a
COUNCIL REGULATION
on the Clean Sky 2 Joint
Undertaking 

This Executive Summary outlines the main
findings and conclusions of the Impact Assessment report accompanying the
Commission proposal for a Council Regulation defining the objectives, legal
status and operational rules of the Clean Sky Joint Undertaking (Clean Sky JU)
for the period 2014-2024.
The proposal follows the White Paper ‘Roadmap
to a Single European Transport Area — Towards a competitive and resource efficient
transport system’, which stresses that joint European efforts will bring the
greatest European added value in areas such as clean, safe and silent vehicles
for all different modes of transport, and the Commission Communication ‘Partnering
in Research and Innovation’, which highlights that the partnering approach in public-private
partnerships (PPPs) can help to address major societal challenges and
strengthen Europe’s competitive position.
The proposal is based on the Commission’s
proposal for ‘Horizon 2020’, which provides a legislative basis for future EU
PPPs in research and innovation.
1.           Problem definition
1.1.        The problem that requires
action
1.1.1.     Air
transport has a significant environmental impact, which
is increasing with air traffic growth
Air travel today accounts for about 7 %
of all emissions produced by the transport sector and around 2 % of total
CO2 emissions in the world, but its share is increasing rapidly with
the growth of air traffic. Flights in Europe will double between 2009 and 2030
and growth will be even stronger outside Europe.
With such a forecast, emissions will
increase significantly if no mitigation measures are taken. It is urgent to drastically
reduce the environmental impact of air transport if Europe is to meet its climate
and energy targets.
1.1.2.     EU industrial
leadership is threatened by increasing international competition
The EU aeronautics sector is one of the
world leaders in terms of production, employment and exports, generating annual
turnover in excess of € 100 billion and employing about 500 000
people.
Despite this leadership, the EU
aeronautical industry is increasingly confronted with strong traditional or
emerging international competitors, which invest significantly in research and development
programmes.
In order to maintain its competitiveness, the
EU aeronautics industry should focus on developing innovative technologies with
improved environmental performance and fuel efficiency and provide competitive
and high-quality products.
1.1.3.     Current EU Public-Private
Partnership in aeronautics needs improvements
Since its establishment in 2008, the Clean
Sky JU, a PPP between the European Commission and the aeronautics industry, is
successfully stimulating developments towards the strategic environmental
targets. In 2010, the first Interim Evaluation[1] concluded
that the concept of the JU is appropriate for its objectives. It also identified
a clear need for improved operational and legal framework. In addition, a
Sherpas' group[2] recognised the need to streamline the legal framework to make it
fit for the purpose of setting up and implementing PPPs in research in the
future. They provided operational recommendations in order to improve the
efficiency and its functioning as an instrument to manage the initiative.
1.2.        The
policy context
The Europe 2020 strategy sets out the EU’s
commitment to reduce all greenhouse gas emissions by 20 % by 2020. The
Transport White Paper recognises that transport accounts for a large share of these
emissions and proposes reduction by 60 % between 1990 and 2050. The Europe
2020 strategy also calls for an ‘Innovation Union’ to tackle the societal
challenges and in particular promotes a more resource-efficient, greener and
competitive economy. Horizon 2020 proposes the Smart,
Green and Integrated Transport challenge aiming, among others, to secure both resource-efficient transport respecting the environment and global
leadership for the European transport industry.
Recognising the evolving challenges, in
2011 a High Level Group on Aviation Research produced ‘Flightpath 2050’ — a new
vision for the European aviation sector developed along the objectives of
Europe 2020 and of the Transport White Paper in agreement between major public and
private players in Europe. It addresses the environmental and competitiveness
challenges and proposes ambitious goals for a sustainable and competitive
aviation sector for 2050[3]. It is complemented by a new Strategic Research and Innovation Agenda
of the Advisory Council for Aeronautics Research and Innovation in Europe
(ACARE) and will guide future actions in public and private funding programmes
along the common roadmap.
2.           Analysis
of subsidiarity
2.1.        EU
right to act
The EU is given the right to act in this
field by Article 187 TFEU, which specifically allows setting up joint
undertakings or any other structure necessary for the efficient execution of
Union research, technological development and demonstration programmes.
2.2.        The
need for public intervention, subsidiarity and European added value
Improving the environmental performance of
aeronautics technologies is complex and costly process requiring a long-term
commitment of resources. Industry cannot address the technological
challenge alone because of the costs and risks involved in R&D and because
the social benefits of cleaner air travel cannot all be appropriated by the
investing firms.
Also, the technological capabilities needed
for innovative solutions in aeronautics are highly specialised, complementary
and not homogenously distributed across all EU Member States. The scale and scope of the research agenda for greening of
aircraft goes beyond the capacity of individual Member States in terms of both financial
commitment and research capacity involved. 
A large-scale programme with
well-structured and focused research agenda agreed between public and private
partners, bringing together different competencies and actors all over Europe, and with public and private financial involvement at EU level is able to stimulate
the necessary technological advances and achieve large-scale societal, economic
and environmental objectives. 
2.3.        Experience
from previous programmes
Clean Sky has been successful in attracting
extensive and wide-ranging participation by all key stakeholders, including a
large number of SMEs. A total of 12 leaders, 74 associated member firms and
more than 400 partner companies are working together to address the
environmental objectives and to demonstrate and validate the required technological
innovations in a commonly defined manner. The programme focuses on radical new
technological concepts that would otherwise be beyond the manageable risk of
the private sector and gives the necessary financial stability to invest in
game-changing innovation in timeframes otherwise unachievable. It also has close
links with the SESAR JU which develops Air Traffic Management technologies in
line with the EU's ‘Single European Sky’ initiative. Despite this success,
several points need to be better addressed in the future such as improvement of
the openness of the activities, increase of the share of open calls and tailoring
of the legal framework to support effective management and cost effectiveness.
3.           Objectives
The initiative aims to improve the competitiveness
and the environmental impact of the aeronautical technologies, in line with the
objectives of Europe 2020, the Transport White Paper and the Horizon 2020 Smart,
Green and Integrated Transport challenge.
The Clean Sky 2 Joint Undertaking shall
have the following objectives:
1.           To contribute to the
finalisation of research activities initiated under Regulation (EC) No 71/2008
and to the implementation of Regulation (EU) No …/2013 of the European
Parliament and of the Council of … 2013 establishing the Horizon 2020 Framework
Programme, and in particular the Smart, Green and Integrated Transport
Challenge under the Societal Challenges pillar... of Decision (EU) No …/2013/EU
[of the Council of … 2013 establishing the Horizon 2020 Specific Programme];
2.           To contribute to the objectives
of the Joint Technology Initiative on Clean Sky 2 , in particular to integrate,
demonstrate and validate technologies capable of:
(a)                   
increasing aircraft fuel efficiency thus
reducing CO2 emissions by 20 to 30 % compared to "state-of-the-art"
aircraft entering into service as from 2014;
(b)                   
reducing aircraft NOx and noise emissions by 20
to 30 % compared to "state-of-the-art" aircraft entering into service
as from 2014[4].
4.           Policy options
The Horizon 2020 programme will be
implemented via collaborative research projects complemented by public-private partnerships.
The options considered are:
1.     
Business as usual (BAU). This option involves
continuing the current Clean Sky initiative under Horizon 2020, extending the
activities to achieve the objectives set. It relies on continuing the Clean Sky
JU under Horizon 2020 as it currently exists, retaining its implementation
arrangements.
2.     
Establishing a contractual PPP to implement a new
programme (cPPP). The option aims to establish together with industry a common
programme to achieve the objectives. The programme is implemented through a
contractual PPP using collaborative research projects managed by Commission staff
or an Executive Agency. The current Clean Sky programme under FP7 comes to an
end in 2017 as initially programmed.
3.     
Establishing a new Joint Technology Initiative
(JTI) through an improved JU to implement a new programme (CS2). This option
establishes a new programme in the form of a JTI implemented by a JU. It aims to
achieve the objectives set by addressing integrated technology demonstrations
at large system level. The governance and programme structure aspects will be
improved and modified to achieve further effectiveness and efficiency.
4.1.        Discarded options
A ‘No EU funding option’ – discontinuation
of public support for research and innovation in aeronautics at European level
– was discarded because it contradicts the provisions of Horizon 2020
addressing air transport as a challenge.
A ‘Regulatory option only’ is not
considered to allow ambitious objectives to be easily achieved in the
aeronautics sector because there would need to be global agreement for its
implementation and the performance targets would consequently be less ambitious.
The ‘No public-private partnership’ option was
assessed as sub-optimal for pursuing the objectives set because carrying out a number
of smaller projects instead of a large-scale integrated demonstrators programme
could cause at least 10 years’ delay in reaching final technology maturity compared
to the other options. Such a delay would miss the opportunity to include the
results in the next generation of aircraft before entry into service[5] and the impact would be small.
5.           Comparing the options
5.1.        How the options were
compared
The assessment methodology is based on the
impact of technologies introduced with the next generation of aircraft expected
in the 2025-2030 timeframe[6]. Each option is assessed in respect of the emission reduction
resulting from the technologies it is able to provide.
Three policy options identified were
compared over a range of key impacts and criteria:
·       
Economic impact (jobs, SMEs, competitiveness)
·       
Environmental impact (emissions)
·       
Social impact (public health, societal benefits)
·       
Administrative impact (operating costs,
simplified structure, governance efficiency)
·       
R&D impact (technology, demonstration,
continuity, fragmentation, integration, timing, cost-effectiveness).
5.2.        Comparison of options and
assessment of cost-effectiveness
The assessment indicates that the CS2
option is the preferred option providing the best means to achieve the
objectives. It has very good synergy with the current research programme and
can be built on technologies and demonstrators developed under Clean Sky,
ensuring a smooth transition.
The CS2 option has the highest potential to
integrate and validate in good time the novel technologies at higher system
level and thus is expected to significantly contribute to addressing the
environmental and societal challenges. The BAU option would produce a lower
impact because new technologies would begin to be developed later and further investment
and intensive work on integration and maturation would be needed. For the cPPP
option the necessary technological breakthrough would be more difficult and
slower to achieve due to the implementation arrangements, the annual decisions on budget and content of the multiannual roadmap
and the lower level of commitment from industry.
In terms of economic impact, the CS2 option
is expected to generate larger benefits compared to other options. In addition,
a cost-benefit analysis shows that CS2 implemented via the JU is at least cost-neutral
or marginally beneficial over programme implementation under the Framework
Programme by the Commission or Executive Agencies when the administrative costs
are shared equally between public and private members.
The CS2 option is also preferred according
to the results of the public consultation. It is supported by industry with a
draft preliminary proposal for the continuation of the activities.
5.3.        Comparison of impacts
The table summarises the comparison of the
different options benchmarked against BAU.
   Option Criteria || Business as Usual (BAU) || Contractual PPP (cPPP) || Renewed JTI (CS2) 
 Effectiveness ||   ||   ||   
 Critical mass || = || - || + 
 Impact on SMEs || = || - || = 
 Leverage effect || = || - || = 
 Innovation impact || = || = || + 
 Environmental impacts || = || = || + 
 Economic impact || = || = || + 
 Social impact || = || - || + 
 Efficiency ||   ||   ||   
 Administrative costs || = || - || + 
 Administrative simplicity || = || = || + 
 Coherence ||   ||   ||   
 Coherence with programmes of MSs || = || - || = 
6.           Scope
of CS2
The CS2 option will address the most
promising new aircraft technologies capable of improving the environmental
performance and competitiveness of the EU aeronautics industry and will build
on technologies and demonstrators developed under Clean Sky.
Two complementary types of demonstrator
activities are proposed for CS2:
·       
Three demonstrators (Innovative Aircraft
Demonstrator Platforms) at the higher level of integration of full aircraft platforms.
They will carry out final system testing in all flying segments (large and
regional aircraft, rotorcraft) at the highest research level.
·       
Three transversal Integrated Technology
Demonstrators focusing on airframe, engine and systems and including electrical
taxing and sustainable lifecycle.
The Technology Evaluator will ensure
continuous assessment of scientific and technological progress and their
potential environmental impacts.
The programme will build on the successful
features of Clean Sky such as the project-like character with a relatively
small number of well-focused demonstrators and clearly set deadlines.
Transition from Clean Sky to CS2 will be progressive and technical and
managerial continuity will be ensured.
The current industry estimate of the cost
of the programme is €4.05 billion. The EU will contribute with €1.8 billion
from the Horizon 2020 budget. The industrial partners will contribute with
€2.25 billion, €1 billion of which through additional activities.
7.           Monitoring and evaluation
Monitoring and evaluation of progress under
the CS2 JU will be carried out by both external and internal bodies.
Internal progress monitoring will be carried
out as follows: firstly, the JU Executive Team will monitor budget
implementation and advances in the technical work; secondly, a technical review
will be conducted by independent external experts on an annual basis; and thirdly,
a Scientific and Technology Advisory Board will analyse the review results and provides
assessment. Based on these assessments, an Annual Activity Report will be
prepared, adopted by the Governing Board and published.
An evaluation by independent experts will
be organised by the European Commission using well-defined technical,
managerial and financial key performance indicators: evaluation before the
programme starts (ex-ante), interim assessments and evaluation after the
programme is completed (ex-post).
As for the current Clean Sky programme, the
Technology Evaluator will be maintained as an important instrument for impact
measurement and its role will be strengthened. It will allow a detailed
assessment of the environmental benefits associated with the new technologies
and will measure the impact of different technological advances against their
specific targets.
[1]               http://ec.europa.eu/research/jti/pdf/clean_sky_interim_evaluation_15-12-2010.pdf
[2]               http://ec.europa.eu/research/jti/pdf/jti-sherpas-report-2010_en.pdf 
[3]               e.g. a 75 % reduction in
CO2 emissions per passenger kilometre, a 90 % reduction in NOx
emissions and a 65 % reduction in perceived noise emission by 2050
relative to the 2000 baseline
[4]               State-of-the-art aircraft is
a new baseline introduced for future initiatives. Currently, Clean Sky results
are compared to the year 2000 aircraft reference. The state-of-the-art aircraft
(e.g. Airbus A320-NEO, Boeing 737-MAX, Boeing 787, Airbus A350) already
incorporate a 15 % reduction in CO2 emissions compared to the
Y2000 aircraft
[5]               Estimated in 2025-2030
[6]               Because of the
particularities of aircraft development, new technologies not included in the
next generation will be introduced one generation later. The time between two
generations is typically 10 to 15 years (subsequent generation around
2040-2045)