Proposal for a COUNCIL REGULATION on the Bio-Based Industries Joint Undertaking
Date: 2013-07-10
Institutions: European Commission
Subjects: EU programme, bio-industry, biofuel, economic growth, innovation, job creation, joint venture, public-private partnership, renewable resources, research and development

EUROPEAN 
COMMISSION 

Brussels, 10.7.2013  
COM(2013) 496 final 

2013/0241 (NLE) 

Proposal for a 

COUNCIL REGULATION 

on the Bio-Based Industries Joint Undertaking 

(Text with EEA relevance) 

{SWD(2013) 247 final} 
{SWD(2013) 248 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

General context 

One  of  the  main  aims  of  Horizon  2020,  the  Framework  Programme  for  Research  and  Innovation 
covering  the  period  2014-2020,  is  to  strengthen  European  industry  through  actions  supporting 
research and innovation across a range of industrial sectors. In particular, it provides for the creation 
of public-private partnerships that will contribute to tackling some of the key challenges Europe is 
facing. 

Bio-based industries in the EU could make a significant contribution to the objectives of the Europe 
2020 Strategy, and its flagship initiatives "Innovation Union", "A Resource Efficient Europe" and 
"An  Industrial  Policy  for  the  Globalisation  Era".  This  has  been  recognised  in  several  recent  EU 
policy  initiatives,  such  as  the  European  Innovation  Partnership  for  Agricultural  Productivity  and 
Sustainability1, the Smart Specialisation Strategy for Member States and Regions2 and the proposal 
for  the  7th  Environmental  Action  Programme.  The  Communication  outlining  the  European 
Bioeconomy  Strategy,  adopted  on  13  February  20123  proposes  the  creation  of  a  Public-Private 
Partnership  (PPP)  for  bio-based  industries  (Bio-based  PPP)  as  part  of  its  Action  Plan.  The 
Commission  Communication  promoting  a  stronger  European  industry  for  growth  and  economic 
recovery4 reiterates the importance of setting up a Bio-based PPP in the form of a Joint Technology 
Initiative  (JTI)  in  the  context  of  the  EU's  industrial  policy,  which  is  also  in  line  with  the 
Commission  Communication  "Public-private  partnerships,  in  Horizon  2020:  a  powerful  tool  to 
deliver on innovation and growth in Europe"5. 

The Committee of the Regions has also underlined the important role of bio-based products and a 
bio-based society in Europe in its opinion on the European Bioeconomy Strategy end of November 
20126.  In  view  of  broader  economic  and  social  sustainability  issues  and  of  implications  for 
consumers, the Commission is currently studying biofuels from a consumer perspective as a part of 
a broader study on the functioning of the fuels market7.  

Reasons and objectives for a JTI in the area of bio-based industries 

Bio-based industries are industries, which use renewable biological resources for the production of 
bio-based products and biofuels. Production usually takes place in biorefineries and often relies on 
bio-based  processes.  They  give  rise  to  new  value  chains,  linking  previously  unrelated  primary 
producers (and e.g. managers of organic waste) and industries, thus opening new opportunities for a 
wide  range  of  established  players.  An  increasing  number  of  processing  industries,  such  as  the 
chemical,  biofuels,  pulp  and  paper,  sugar  and  starch,  and  technology  providers  (in  particular  on 
industrial  biotechnology  and  engineering)  are  interested  in  moving  partially  or  entirely  towards 
sustainable renewable bio-based resources and/or products. 

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5 
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COM(2012) 79 
DG REGIO (2012) Connecting Smart and Sustainable Growth through Smart Specialisation: A practical guide 
for ERDF managing authorities 
COM(2012) 60  
COM(2012) 582 
COM(2013) […] 
CDR1112-2012 
The  study  (to  be  published  by  the  end  of  2013)  explores  whether  consumers  are  able  to  make  informed 
choices,  by  looking  into  consumer  understanding  and  the  transparency  of  information.  It  is  expected  to 
generate  recommendations  on  improving  and  harmonising  fuel  labelling  at  the  pump  across  EU  Member 
States. The study also tackles the issue of the availability of different fuels and retailers, and retail prices. 

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The main focus of this JTI will be on the transformation of non-edible parts of plants (e.g. wood, 
agricultural and forestry residues) and biodegradable wastes into bio-based products and biofuels. 
The non-edible part of plants, also referred to as ligno-cellulosic material, is usually heterogeneous 
and  contains  a  mix  of  different  types  of  complex  biomolecules  (i.e.  cellulose,  hemi-cellulose  and 
lignin).  The  technology  required  for  transforming  ligno-cellulosic  material  is  considered  "more 
advanced"  compared  to  current  technologies  converting  edible  parts  of  plants,  and  is  still  being 
developed. The resulting products and processes are therefore called "advanced". 

Bio-based  industries  are  a  cornerstone  of  the  EU  bioeconomy  in  generating  growth  and  jobs. 
Although bio-based products and biofuels currently only represent about 3% of the EUR 2 trillion 
in annual turnover and 1% of the 22 million jobs generated by  the European bioeconomy today8, 
bio-based  industries  are  expected  to  grow  more  rapidly  and  substantially  than  more  traditional 
bioeconomy sectors9,10. Estimates from different sources consider that:  

•  The  global  revenue  potential  of  the  entire  biomass  value  chain  for  biorefineries  could  exceed 

EUR 200 billion by 202011;  

•  The  share  of  bio-based  processes  in  all  chemical  production  taken  on  its  own  is  likely  to 

increase from less than 2% in 2005 to 25% in 202512;  

•  The volume growth of EU bio-based chemical products (including bio-plastics, bio-lubricants, 
bio-solvents,  bio-surfactants  and  chemical  feedstock)  will  be  at  5.3%  per  year  up  to  2020, 
resulting  in  a  market  worth  EUR  40  billion  and  90,000  jobs  within  the  bio-chemical  industry 
alone13;  

•  Up  to  75  billion  litres  of  bioethanol  could  be  sustainably  produced  at  a  competitive  cost  by 
2020,  which  would  represent  about  EUR  15  billion  in  additional  revenue  for  the  agricultural 
sector14. 

To realise this potential and ensure the competitiveness of Europe's bio-based industries and their 
value chains in global markets, a number of hurdles need to be overcome: 

•  Biomass  feedstock  will  need  to  be  sourced  in  Europe  in  a  sustainable  way  and  without 
unintended negative consequences, such as loss of biodiversity, indirect land use change (ILUC) 
or negative effects for food security. 

•  Different players, including agriculture and forestry, industries and waste managers need to set-
up cooperations along full value chains, with the aim of increasing resource-use efficiency by 
reducing the current fragmentation and isolation of these sectors. 

•  New processes need to be developed to separate, pre-treat and convert this feedstock into bio-
based  products  and  biofuels.  A  wide  range  of  radically  different  technological  options  (e.g. 
enzyme based versus thermochemical processes) will need to be taken forward simultaneously 
in a strong and multi-facetted research effort to enhance process efficiency and optimise yield. 
•  Significant  investment  in  up-scaling  of  technology  and  infrastructure  is  needed  to  assess  the 
relative merits of radically different technology options and to identify winning option(s). This 
will  mean  upgrading  existing  bio-based  industries  (e.g.  pulp  and  paper  mills,  biofuels,  starch, 
chemical, etc.) and developing new and scalable integrated biorefinery models.  

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COM(2012)60 and SWD(2012)11 
OECD(2009) The bioeconomy to 2030: Designing a Policy Agenda 
Festel, G. (2011) Presentation at the 4th Annual European Forum for Industrial Biotechnology & The Biobased 
Economy, Amsterdam, 20 October 2011 
WEF (2010) The future of Industrial Biorefineries 
OECD(2009) The bioeconomy to 2030: Designing a Policy Agenda 
COM(2012) 582  
Bloomberg New Energy Finance (2010) Next-generation ethanol and biochemicals: What's in it for Europe 

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•  The successful uptake of new bio-based products and bioenergy/fuels would require developing 
standards, labelling and certification systems and achieving customer acceptance. Product prices 
should  appropriately  reflect  externalities  and  consumers  should  be  able  to  make  informed 
product  choices,  e.g.  based  on  data  on  the  benefits  of  these  products  over  the  full  product 
lifecycle from cradle to grave. 

The  bio-based  industry  value  chains  (ranging  from  primary  production,  biorefineries,  industrial 
users to consumer brands) are complex and so are the technological and innovation challenges that 
need  to  be  overcome  to  unlock  its  socio-economic  and  environmental  potential.  Only  a  strong 
strategic  vision,  a  well-structured  and  defined  research  and  innovation  agenda  and  a  long-term 
stable financial commitment can bring together in one programme the different competences from 
across Europe to achieve the necessary breakthroughs and provide sufficient certainty and critical 
mass to leverage significant private investments. 

The objectives of the proposed JTI on bio-based industries are to: 

• 

• 

• 

• 

Contribute  to  a  more  resource  efficient  and  sustainable  low-carbon  economy  and  to 
increasing  economic  growth  and  employment,  in  particular  in  rural  areas,  by  developing 
sustainable  and  competitive  bio-based 
industries  in  Europe,  based  on  advanced 
biorefineries that source their biomass sustainably; and in particular to: 

Demonstrate  technologies  that  enable  new  chemical  building  blocks,  new  materials,  and 
new  consumer  products  from  European  biomass,  which  replace  the  need  for  fossil-based 
inputs; 

Develop business models that integrate economic actors along the value chain from supply 
of biomass to biorefinery plants to consumers of bio-based materials, chemicals and fuels, 
including through creating new cross-sector interconnections and supporting cross-industry 
clusters; and 

Set-up  flagship  biorefinery  plants  that  deploy  the  technologies  and  business  models  for 
bio-based  materials,  chemicals  and  fuels  and  demonstrate  cost  and  performance 
improvements to levels that are competitive with fossil-based alternatives. 

Building on past experience 

The  EU  has  funded  a  wide  range  of  projects  that  contribute  to  the  advancement  of  bio-based 
industries over the past decades. The EU Framework Programmes for Research and Technological 
Development  (FPs)  cover  almost  6%  of  total  R&D  investment  of  the  EU  and  15%  of  European 
publicly  funded  R&D  financed  in  a  cross-border  collaborative  manner.  Under  the  FP7  Specific 
Programme  on  "Cooperation",  Theme  2  "Food,  Agriculture  and  Fisheries,  Biotechnology"  is 
currently financing 100 projects in the area of biotechnology with an EU contribution of about EUR 
400 million. 

In view of the multidisciplinary nature of biorefineries, DG RTD organised a Joint Call in 2008 on 
biorefineries involving four Themes of the "Cooperation" Programme (Theme 2, Theme 5, Theme 4 
"Nanosciences,  Nanotechnologies,  Materials  and  New  Production  Technologies,  and  Theme  6 
"Environment").  Three 
(BIOCORE,  EUROBIOREF  and 
SUPRABIO) were selected for funding in 2009 with a combined EU contribution of about EUR 50 
million. 

flagship  collaborative  projects 

The experience of the past years confirms that Europe has a strong research base in the area of bio-
based industries  with  some  successful  biorefinery plant projects, both at  EU  level  and  at  regional 
and national level.  

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Funding mechanisms applied at EU and regional level, in particular large and integrated biorefinery 
projects and regional bioeconomy clusters, are a step in the right direction by applying a value chain 
approach  that  covers  research,  demonstration  and  deployment  activities  and  encourages  cross-
border  collaboration.  Yet,  they  have  not  succeeded  in  reaching  a  critical  mass  sufficient  to 
overcome  fragmentation  and  create  integrated  bio-based  industry  value  chains  in  Europe.  The 
impact  of  either  funding  mechanism  could  have  been  even  better  if  they  had  been  part  of  an 
integrated long-term vision for bio-based industries and if more support was given to demonstration 
and deployment activities. 

2. 

RESULTS  OF  CONSULTATIONS  WITH  INTERESTED  PARTIES  AND  IMPACT 
ASSESSMENTS 

A wide range of sources were consulted in preparation of this JTI: 

• 

• 

• 

• 

A public consultation on the proposed Bio-based PPP took place from 21 September to 14 
December  2012  and  received  638  valid  responses.  64.6%  of  responses  came  from  the 
private  sector,  24.6%  from  academia,  8.8%  from  the  public  sector  and  2%  from  NGOs. 
Responses were received from 19 out of 27 Member States, with most replies coming from 
Poland, followed by the Netherlands, Germany, Spain, France, Belgium, Sweden, Finland, 
Italy,  Austria,  the  UK,  Romania,  the  Czech  Republic,  Portugal,  Denmark,  Ireland, 
Hungary, Greece and Slovakia. Almost all respondents (94.3%) called for EU intervention 
and  86.9%  viewed  a  PPP  as  the  most  appropriate  mechanism  to  implement  the  R&I 
programme for bio-based industries under Horizon 2020, and considered that it would have 
positive  socio-economic  impacts.  Other  key  messages  were  the  need  to  strengthen  EU 
innovation, to improve competitiveness and to formulate clear intervention objectives for 
bio-based industries. The results from the consultation were presented and discussed at a 
stakeholder event on 9 January 2013 in Brussels, which was attended by 162 people. The 
full  report  of  the  online  public  consultation  forms  part  of  the  Impact  Assessment;  it  is 
planned to publish a printed version in June 2013. 

Several  events  organised  in  the  framework  of  the  Bioeconomy  Strategy  implementation 
allowed for regular and broad-based contacts with  stakeholders  during  the  preparation  of 
the Impact Assessment . This included the conference "Partnering for the Bioeconomy in 
European Regions" of 12 October 2012, co-organised by DG RTD and the Committee of 
the Regions. During the conference, information on the potential of a Bio-based PPP was 
provided and examples of regional activities highlighted possible benefits of bioeconomy 
partnerships.  DG  REGIO  specifically  informed  conference  participants  about  the  Smart 
Specialisation Strategy, being part of the rural development policy of the EU. It proposed 
focusing investments on the bioeconomy where appropriate. 

Several  studies  conducted  in  connection  with  the  bioeconomy,  bio-based  products  and 
biofuels were consulted. 

A group of ten external reviewers with expertise relevant to the different parts of the bio-
based  industries  value  chain  was  brought  in  to  assist  DG  RTD  with  collecting  and 
analysing the above data and preparing the Impact Assessment. 

Impact Assessment 

The  proposed  Regulation  is  supported  by  a  Commission  Impact  Assessment,  which  is 
accompanying the proposal. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary of the proposed action 

This  proposal  concerns  setting-up  the  Bio-based  Industries  Joint  Undertaking  (BBI  JU)  under 
Article 187 of the Treaty on the Functioning of the European Union (TFEU) for the implementation 
of the Joint Technology Initiative on Bio-based Industries (BBI JTI). 

The BBI JU should be established for a period ending on 31 December 2024. It will have its seat in 
Brussels, Belgium. 

It  will  be  founded  by  the  EU,  represented  by  the  European  Commission,  and  the  Biobased 
Industries  Consortium  (BIC).  The  activities  of  the  BBI  JU  will  be  jointly  funded  by  its  founders. 
The  Commission  and  BIC  will  contribute  in  equal  parts  to  the  running  costs  of  the  BBI  JU.  The 
research  and  demonstration  activities  will  be  funded  through  contributions  by  the  BIC  member 
companies  with  monetary  and  non-monetary  resources  (staff,  equipment,  consumables,  etc.),  and 
monetary resources from the EU. The level of EU resources will vary, in line with Horizon 2020 
rules, depending on the type of activity considered. 

The  BBI  JU  will  be  open  to  new  members,  provided  that  they  contribute  with  resources  to  the 
achievements of the objectives. 

The Commission will be  represented in the Governing Board in rights and votes as the industrial 
BIC members.  

Legal basis 

The legal basis of the proposal is Article 187 of the TFEU. 

The  Rules  for  Participation  and  Dissemination  of  Horizon  2020  will  apply.  However,  given  a 
specific operational need of this initiative, a derogation from these Rules is necessary. Nevertheless, 
this specific derogation is not included in the present proposal at this stage, in order not to prejudice 
the  inter-institutional  discussions  concerning  the  appropriate  legal  basis/procedural  modalities  for 
their  adoption,  which  are  still  pending  in  the  context  of  the  legislative  works  concerning  the 
Commission proposal for a Regulation of the European Parliament and of the Council laying down 
the  Rules  for  Participation  and  dissemination  in  Horizon  2020  (COM(2011)  0810  -  2011/0399 
(COD).  The  specific  derogation  will  be  introduced  at  a  later  stage  in  view  of  the  outcome  of  the 
abovementioned discussions. 

The  derogation  will  allow  to  limit,  for  actions  other  than  innovation  actions,  the  eligibility  for 
funding to entities such as SMEs or secondary and higher education establishments whilst achieving 
at the same time the optimal level of leverage effect on private investment. 

Subsidiarity and proportionality 

The proposal concerns an area in which the EU does not have exclusive competence, which is why 
the principle of subsidiarity applies. 

The  policy  objectives  underlying  the  proposal  can  only  be  achieved  through  EU  action  for  the 
following main reasons: 

(1) 

The  transnational  and  complex  nature  of  this  large  research  and  innovation  challenge 
identified, which requires pooling complementary knowledge and financial resources across 
sectors  and  borders.  No  single  Member  State,  company  or  stakeholder  can  resolve  the 
problem by itself. 

(2) 

The  coordination  effort  and  the  resources  required  are  of  such  a  large  scale  that  they  can 
only be credibly implemented at European level. 

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(3) 

Given  similar  and  competing  initiatives  underway  or  being  launched  in  other  leading 
economies  (US,  Brazil,  China,  Canada),  only  large-scale  action  implemented  at  European 
level is sufficiently attractive for industries to invest in Europe. 

In  accordance  with  the  principle  of  proportionality,  the  provisions  of  this  Regulation  do  not  go 
beyond what is necessary to achieve the objectives. 

Choice of instrument 

The  proposed  Regulation  will  significantly  boost  public  and  private  investment  in  research  and 
innovation activities that aim to improve the competitiveness of European bio-based industries and 
create employment, in particular in rural areas. The BBI JU can leverage private resources with EU 
funds at a level that cannot be achieved with traditional instruments, which lack the strategic long-
term approach regarding programming and financing. Every EUR 1 of EU funds will leverage EUR 
2.8 of private funds during the operation of the Joint Undertaking. 

4. 

BUDGETARY IMPLICATION 

The  total  budget  of  the  BBI  JU  will  be  EUR  2  000  million  (including  in  cash  and  in  kind 
contributions).  In  addition,  the  industry  has  committed  to  invest  EUR  1  800  million  in  the 
establishment of large demonstration and flagship plants contributing to the objectives of this JTI.  

The  maximum  contribution  from  the  European  Union  (including  EFTA)  will  be  EUR  1  000 
million15, paid from the Horizon 2020 budget. 

The  running  costs  of  the  BBI  JU  will  be  covered  in  equal  parts  by  the  EU  and  the  BIC  from  the 
outset. The administrative costs shall not exceed EUR 60 million for the duration of the JU. 

The research and demonstration activities implemented by the BBI JU and eligible for co-funding 
under Horizon 2020 will be jointly funded by the EU and BIC. 

5. 

OPTIONAL ELEMENTS 

Review 

The EU will present an annual report on the progress made by the BBI JU and will perform a mid-
term review by 31 December 2017. Discharge for the implementation of the EU contribution shall 
be part of the discharge given by the European Parliament, upon recommendation of the Council, to 
the  Commission  in  accordance  with  the  procedure  provided  for  in  Article  319  of  the  TFEU. 

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2013/0241 (NLE) 

Proposal for a 

COUNCIL REGULATION 

on the Bio-Based Industries Joint Undertaking 

(Text with EEA relevance) 

THE COUNCIL OF THE EUROPEAN UNION 

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 187 
and the first paragraph of Article 188 thereof, 

Having regard to the proposal from the European Commission, 
Having regard to the opinion of the European Parliament16, 
Having regard to the opinion of the Economic and Social Committee17, 

Whereas 

(1) 

(2) 

(3) 

Public-private  partnerships  in  the  form  of  Joint  Technology  Initiatives  were  initially 
provided for in Decision (EC) No 1982/2006 of the European Parliament and of the Council 
of  18  December  2006  concerning  the  Seventh  Framework  Programme  of  the  European 
Community  for  research,  technological  development  and  demonstration  activities  (2007-
2013)18. 

Council  Decision  2006/971/EC  of  19  December  2006  concerning  the  Specific  Programme 
‘Cooperation’  implementing  the  Seventh  Framework  Programme  of  the  European 
Community  for  research,  technological  development  and  demonstration  activities  (2007-
2013)19 identified specific public-private partnerships to be supported.  

Regulation  (EU)  No  …/2013  of  the  European  Parliament  and  of  the  Council  of  …  2013 
establishing  Horizon  2020  -  The  Framework  Programme  for  Research  and  Innovation 
(2014-2020)20  aims  to  achieve  a  greater  impact  on  research  and  innovation  by  combining 
Horizon  2020  Framework  Programme  and  private-sector  funds 
in  public-private 
partnerships in key areas where research and innovation can contribute to the Union's wider 
competitiveness goals and help tackle societal challenges. The involvement of the Union in 
those  partnerships  may  take  the  form  of  financial  contributions  to  joint  undertakings 
established on the basis of Article 187 of the Treaty under Decision No 1982/2006/EC  

(4) 

In  accordance  with  Decision  (EU)  No  …/2013  of  the  Council  of  …  2013  establishing  the 
Specific Programme implementing Horizon 2020 (2014-2020)21 support may be provided to 

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OJ … [EP opinion] 
OJ … [ESC opinion] 
OJ L 412, 30.12.2006, p. 1. 
OJ L 400, 30.12.2006, p. 86. 
OJ … [H2020 FP] 
OJ … [H2020 SP] 

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(5) 

(6) 

(7) 

(8) 

(9) 

joint  undertakings  established  in  the  Horizon  2020  Framework  Programme  under  the 
conditions specified in that Decision. 
Europe  2020  Strategy22  underscores  the  need  to  develop  favourable  conditions  for 
investment  in  knowledge  and  innovation  so  as  to  achieve  smart,  sustainable  and  inclusive 
growth in the Union. Both European Parliament and Council have endorsed this strategy. 

The  Bio-based  Industries  Consortium  (hereinafter  "BIC")  developed  a  vision  paper  and  a 
Strategic Innovation and Research Agenda, based on extensive consultation with public and 
private  stakeholders.  The  Strategic  Innovation  and  Research  Agenda  describes  the  main 
technological  and  innovation  challenges  that  need  to  be  overcome  in  order  to  develop 
sustainable  and  competitive  bio-based  industries  in  Europe  and  identifies  research, 
demonstration and deployment activities to be carried out by a Joint Technology Initiative 
on "Bio-based Industries". 

BIC  is  a  non-profit  organisation  that  was  created  to  represent  the  industry  group  that 
supports  the  Joint  Technology  Initiative  on  Bio-based  Industries.  Its  members  cover  the 
entire  bio-based  value  chain  and  consist  of  large  industries,  small  and  medium-sized 
enterprises  (SMEs),  regional  clusters,  European 
trade  associations,  and  European 
Technology  Platforms.  The  aim  of  BIC  is  to  ensure  and  promote  the  technological  and 
economic  development  of  the  bio-based  industries  in  Europe.  Any  interested  stakeholders 
along the bio-based value chain may apply for membership. It applies general principles of 
openness and transparency regarding membership, ensuring a wide industrial involvement. 

The Commission Communication of 13 February 2012 "Innovating for Sustainable Growth: 
A  Bioeconomy  for  Europe"23  and  in  particular  its  Action  Plan  calls  for  a  public  private 
partnership to support the establishment of sustainable and competitive bio-based industries 
and  value  chains  in  Europe.  In  view  of  moving  towards  a  post-petroleum  society,  the 
Communication aims to integrate better biomass producing and processing sectors in order 
to  reconcile  food  security  and  natural  resource  scarcity  and  environmental  objectives  with 
the use of biomass for industrial and energy purposes.  

The  Commission  Communication  of  10  October  2012  "A  Stronger  European  Industry  for 
Growth and Economic Recovery"24 confirms the strategic importance of bio-based industries 
for the future competitiveness of Europe, as identified in the Commission Communication of 
21 December 2007 "A lead market initiative for Europe"25 and stresses the need for a Joint 
Technology Initiative on "Bio-based Industries". 

(10)  Bio-based  industries  and  their  value  chains  are  facing  complex  and  substantial  technology 
and innovation challenges.  As  a  nascent sector, bio-based industries have to overcome the 
dispersion  of  technical  competences  and  the  limited  publically  available  data  on  real 
resource availability in order to build sustainable and competitive value chains. In order to 
tackle  these  challenges,  critical  mass  has  to  be  achieved  in  a  focused  and  coherent  way  at 
European level in terms of scale of activity, excellence, and potential for innovation. 

(11)  The Joint Technology Initiative on Bio-based Industries should mitigate the different types 
of  market  failures  that  discourage  private  investment  into  pre-competitive  research, 
demonstration and deployment activities for bio-based industries in Europe. In particular, it 
should  ascertain  the  availability  of  reliable  biomass  supply  taking  into  account  other 

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25 

COM(2010)2020 final. 
COM(2012) 60. 
COM(2012) 582 final. 
COM(2007) 860 final. 

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competing  social  and  environmental  demands,  and  support  the  development  of  advanced 
processing  technologies,  large  scale  demonstration  activities  and  policy  instruments,  thus 
reducing  the  risk  for  private  research  and  innovation  investment  in  the  development  of 
sustainable and competitive bio-based products and biofuels.  

(12)  The  Joint  Technology  Initiative  on  Bio-based  Industries  should  be  a  public-private 
partnership  aiming  at  increasing  investment  in  the  development  of  a  sustainable  bio-based 
industry sector in Europe. It should provide environmental and socio-economic benefits for 
European  citizens,  increase  the  competitiveness  of  Europe  and  contribute  to  establishing 
Europe  as  a  key  player  in  research,  demonstration  and  deployment  of  advanced  bio-based 
products and biofuels. 

(13)  The objective of the Joint Technology Initiative on Bio-based Industries is to implement a 
programme of research and innovation activities in Europe that will assess the availability of 
renewable  biological  resources  that  can  be  used  for  the  production  of  bio-based  materials 
and  on  that  basis  support  the  establishment  of  sustainable  bio-based  value  chains.  These 
activities should be carried out through collaboration between stakeholders along the entire 
bio-based  value  chains,  including  primary  production  and  processing  industries,  consumer 
brands, SMEs, research and technology centres and universities. 

(14)  The  ambition  and  scope  of  the  objectives  of  the  Joint  Technology  Initiative  on  Bio-based 
Industries, the scale of the financial and technical resources that need to be mobilized, and 
the need to achieve effective coordination and synergy of resources and funding, require the 
involvement of the Union. Therefore a Joint Undertaking for the implementation of the Joint 
Technology  Initiative  on  Bio-based  Industries  (hereinafter  the  BBI  Joint  Undertaking) 
should be established as a legal entity.  

(15)  The objective of the BBI Joint Undertaking should be achieved through support of research 
and innovation activities by using resources from the public and private sectors. To this end, 
the  BBI  Joint  Undertaking  should  organise  calls  for  proposals  for  supporting  research, 
demonstration and deployment activities.  

(16)  To  achieve  maximum  impact,  the  Bio-Based  Industries  Joint  Undertaking  should  develop 
close  synergies  with  other  Union  programmes  in  areas  such  as  education,  environment, 
competitiveness  and  SMEs,  and  with  the  Cohesion  Policy  funds  and  Rural  Development 
Policy,  which  can  specifically  help  to  strengthen  national  and  regional  research  and 
innovation capabilities in the context of smart specialisation strategies.  

(17)  The founding members of the BBI Joint Undertaking should be the Union and BIC.  

(18)  The  rules  for  the  organisation  and  operation  of  the  BBI  Joint  Undertaking  should  be  laid 

down in the Statutes of the BBI Joint Undertaking as part of this Regulation.  

(19)  BIC has expressed, in writing, its agreement to pursue the research activities in the area of 
the BBI Joint Undertaking within a structure well adapted to the nature of a public-private 
partnership.  It  is  appropriate  that  BIC  accedes  to  the  Statutes  set  out  in  Annex  to  this 
Regulation by signing a letter of endorsement.  

(20) 

In  order  to  achieve  its  objectives,  the  BBI  Joint  Undertaking  should  provide  financial 
support mainly in the form of grants to participants following open and competitive calls for 
proposals. 

(21)  Contributions  from  the  private  Members  should  not  only  be  limited  to  the  administrative 
costs of the BBI Joint Undertaking and to the co-financing required to carry out research and 
innovation actions supported by the BBI Joint Undertaking.  

EN 

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(22)  Their contributions should also relate to additional activities to be undertaken by the private 
Members, as specified in an additional activities plan; in order to get a proper overview of 
the  leverage  effect  those  additional  activities  should  represent  contributions  to  the  broader 
Joint Technology Initiative on Bio-Based Industries. 

(23)  Participation  in  indirect  actions  funded  by  the  BBI  Joint  Undertaking  should  comply  with 
Regulation  (EU)  No  …  /2013  of  the  European  Parliament  and  of  the  Council  of  …  2013 
laying down the rules for participation and dissemination in "Horizon 2020 - the Framework 
Programme for Research and Innovation (2014-2020)"26.  

(24)  The Union financial contribution to the BBI Joint Undertaking should be managed in 
accordance with the principle of sound financial management and with the relevant rules on 
indirect  management  set  out  in  Regulation  (EU,  Euratom)  No  966/2012  and  Commission 
delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of 
Regulation (EU, Euratom) No 966/201227.  

(25)  Audits  of  recipients  of  Union  funds  under  this  Regulation  should  be  carried  out  in  such  a 
manner that the administrative burden is reduced, in compliance with Regulation (EU) No 
…/2013 [the Horizon 2020 Framework Programme]. 

(26)  The financial interests of the Union and of the other members of the BBI Joint Undertaking 
should  be  protected  through  proportionate  measures  throughout  the  expenditure  cycle 
including the prevention, detection and investigation of irregularities, the recovery of funds 
lost, wrongly paid or incorrectly used  and, where appropriate, administrative  and financial 
penalties in accordance with Regulation (EU, Euratom) No 966/2012. 

(27)  The  Commission's  internal  auditor  should  exercise  the  same  powers  over  the  BBI  Joint 

Undertaking as those exercised in respect of the Commission.  

(28) 

(29) 

(30) 

In accordance with Article 287(1) of the Treaty, the constituent instrument of bodies, offices 
or agencies set up by the Union may preclude the examination of the accounts of all revenue 
and expenditure of those bodies, offices or agencies by the Court of Auditors. In accordance 
with  Article  60(5)  of  Regulation  (EU,  Euratom)  No  966/2012,  the  accounts  of  the  bodies 
under  Article  209  Regulation  (EU,  Euratom)  No  966/2012  are  to  be  examined  by  an 
independent  audit  body  which  is  to  give  an  opinion  inter  alia  on  the  reliability  of  the 
accounts  and  the  legality  and  regularity  of  the  underlying  transactions.  Avoidance  of 
duplication  of  the  examination  of  the  accounts  justifies  that  the  accounts  of  the  BBI  Joint 
Undertaking should not be subject to examination by the Court of Auditors. 

In  order  to  facilitate  its  establishment,  the  Commission  should  be  responsible  for  the 
establishment and initial operation of the BBI Joint Undertaking until it has the operational 
capacity to implement its own budget. 

In accordance with the principles of subsidiarity and proportionality as set out in Article 5 of 
the Treaty on European Union, the objectives of the BBI Joint Undertaking in strengthening 
industrial  research and  innovation  across the Union cannot be sufficiently  achieved by the 
Member States and can therefore, by reason of avoiding duplication, retaining critical mass 
and  ensuring  that  public  financing  is  used  in  an  optimal  way,  be  better  achieved  by  the 
Union;  this  Regulation  confines  itself  to  the  minimum  required  in  order  to  achieve  those 
objectives and does not go beyond what is necessary for that purpose. 

26 
27 

OJ … [H2020 RfP] 
OJ L 362, 31.12.2012, p. 1. 

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HAS ADOPTED THIS REGULATION: 

Article 1 
Establishment 

1. 

2. 

3. 

4. 

5. 

For the implementation of the Joint Technology Initiative on Bio-Based Industries, a joint 
undertaking  within  the  meaning  of  Article  187  of  the  Treaty  (hereinafter  "BBI  Joint 
Undertaking"), is established for a period from 1 January 2014 until 31 December 2024. 

The BBI Joint Undertaking shall constitute a body entrusted with the implementation of a 
public-private  partnership  referred  to  in  Article  209  of  Regulation  (EU,  Euratom)  No 
966/2012 of the European Parliament and the Council28.  

The BBI Joint Undertaking shall have legal personality. In each of the Member States, it 
shall enjoy the most extensive legal capacity accorded to legal persons under the laws of 
those Member States. It may, in particular, acquire or dispose of movable and immovable 
property and may be party to legal proceedings. 

The seat of the BBI Joint Undertaking shall be located in Brussels, Belgium. 

The Statutes of the BBI Joint Undertaking are set out in the Annex. 

The BBI Joint Undertaking shall have the following objectives: 

Article 2 
Objectives 

(a) 

(b) 

(c) 

(d) 

(e) 

1. 

28 

to  contribute  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 part … of Decision No … /2013 EU of the Council of …2013 
establishing the Horizon 2020 Specific Programme.  

to contribute to the objectives of the Biobased Industries Joint Technology Initiative for a 
more  resource  efficient  and  sustainable  low-carbon  economy  and  increasing  economic 
growth  and  employment,  in  particularly  in  rural  areas,  by  developing  sustainable  and 
competitive  bio-based  industries  in  Europe  based  on  advanced  biorefineries  that  source 
their biomass sustainably; and in particular to: 

demonstrate  technologies  that  enable  new  chemical  building  blocks,  new  materials,  and 
new  consumer  products  from  European  biomass  and  which  replace  the  need  for  fossil 
based inputs; 

develop business models that integrate economic actors along the whole value chain from 
supply of biomass to biorefinery plants to consumers of bio-based materials, chemicals and 
fuels, including through creating new cross-sector interconnections and supporting cross-
industry clusters; and 

set up flagship biorefinery plants that deploy the technologies and business models for bio-
based materials, chemicals and fuels and demonstrate cost and performance improvements 
to levels that are competitive with fossil based alternatives. 

Article 3 
Union financial contribution 

The  maximum  Union  contribution,  including  EFTA  appropriations  to  the  BBI  Joint 
Undertaking  to  cover  administrative  costs  and  operational  costs  shall  be  EUR  1  000 

OJ L 298, 26.10.2012, p.1. 

EN 

12 

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2. 

3. 

million. The contribution shall be paid from the appropriations in the general budget of the 
Union allocated to the Horizon 2020 Specific Programme implementing the Horizon 2020 
Framework Programme in accordance with the relevant provisions of Article 58(1)(c)(iv) 
and Articles 60 and 61 of Regulation (EU, Euratom) No 966/2012 for bodies referred to in 
Article 209 of that Regulation. 

The  arrangements  for  the  Union  financial  contribution  shall  be  set  out  in  a  delegation 
agreement  and  annual  transfer  of  funds  agreements  to  be  concluded  between  the 
Commission, on behalf of the Union, and the BBI Joint Undertaking. 

The delegation agreement referred to in paragraph 2 shall address the elements set out in 
Article  58(3)  and  Articles  60  and  61  of  Regulation  (EU,  Euratom)  No  966/2012  and  in 
Article  40 of Commission  delegated  Regulation  (EU)  No  1268/2012  as  well  as  inter  alia 
the following: 

(a) 

(b) 

(c) 

(d) 

(e) 

the requirements for the BBI Joint Undertaking's contribution regarding the relevant 
performance  indicators  referred to in  Annex II to  Decision No …/EU [the  Specific 
Programme implementing the Horizon 2020 Framework Programme]; 

the  requirements  for  the  BBI  Joint  Undertaking's  contribution  in  view  of  the 
monitoring referred to in Annex III to Decision No …/EU [the Specific Programme 
implementing the Horizon 2020 Framework Programme]; 

the  specific  performance  indicators  related  to  the  functioning  of  the  BBI  Joint 
Undertaking; 

the  arrangements  regarding  the  provision  of  data  necessary  to  ensure  that  the 
Commission is able to meet its dissemination and reporting obligations; 

the  use  of  and  changes  to  human  resources,  in  particular  recruitment  by  function 
group,  grade  and  category,  the  reclassification  exercise  and  any  changes  to  the 
number of staff members. 

Article 4 
Contributions of Members other than the Union 

1. 

The Members of the BBI Joint Undertaking other than the Union shall make or arrange for 
their constituent entities to make a total contribution of at least EUR 2 800 million over the 
period defined in Article 1. 

2. 

The contribution referred to in paragraph 1 shall consist of the following: 

(a) 

(b) 

contributions  to  the  BBI  Joint  Undertaking  as  laid  down  in  clause  12(2),  clause 
12(3)(b) and clause 12(3)(c) of the Statutes contained in the Annex. 

in kind contributions of at least EUR 1 800 million over the period defined in Article 
1 by the Members other than the Union or their constituent entities consisting of the 
costs incurred by them in implementing additional activities outside the work plan of 
the BBI Joint Undertaking contributing to the objectives of the BBI Joint Technology 
Initiative. Other Union funding programmes may support those costs in compliance 
with  the  applicable  rules  and  procedures.  In  such  cases,  Union  financing  shall  not 
substitute  for  the  in  kind  contributions  from  the  Members  other  than  the  Union  or 
their constituent entities. 

Those costs referred to in point (b) shall not be eligible for financial support by the 
BBI  Joint  Undertaking.  The  corresponding  activities  shall  be  set  out  in  an  annual 

EN 

13 

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3. 

4. 

5. 

additional  activities  plan 
contributions. 

that  shall 

indicate 

the  estimated  value  of 

those 

The Members of the BBI Joint Undertaking other than the Union shall report each year by 
31  January  to  the  Governing  Board  of  the  BBI  Joint  Undertaking  on  the  value  of  the 
contributions referred to in paragraph 2 made in each of the previous financial years. 

For  the  purpose  of  valuing  the  contributions  referred  to  in  point  (b)  of  paragraph  2  and 
clause  12(3)(c)  of  the  Statutes  contained  in  the  Annex,  the  costs  shall  be  determined 
according to the usual cost accounting practices of the entities concerned, to the applicable 
accounting standards of the country where each entity is established, and to the applicable 
International  Accounting  Standards  /  International  Financial  Reporting  Standards.  The 
costs  shall  be  certified  by  an  independent  external  auditor  appointed  by  the  entity 
concerned.  The  valuation  of  the  contributions  shall  be  verified  by  the  BBI  Joint 
Undertaking.  In  case  of  remaining  uncertainties,  it  may  be  audited  by  the  BBI  Joint 
Undertaking. 

The  Commission  may  terminate,  proportionally  reduce  or  suspend  the  Union  financial 
contribution to the BBI Joint Undertaking or trigger the winding up procedure referred to 
in clause 20(2) of the Statutes contained in the Annex if those Members or their constituent 
entities  do  not  contribute,  contribute  only  partially  or  contribute  late  with  regard  to  the 
contributions referred to in paragraph 2. 

Article 5 
Financial rules 

The BBI Joint Undertaking shall adopt its specific Financial rules in accordance with Article 209 of 
Regulation (EU, Euratom) No 966/2012 and Regulation (EU) No … [Delegated Regulation on the 
model Financial Regulation for PPPs]. 

Article 6 
Staff 

1. 

2. 

The Staff Regulations of Officials and the Conditions of Employment of Other Servants of 
the  European  Union  as  laid  down  by  Council  Regulation  (EEC,  Euratom,  ECSC)  No 
259/6829  and  the  rules  adopted  by  agreement  between  the  institutions  of  the  Union  for 
giving  effect  to  those  Staff  Regulations  and  those  Conditions  of  Employment  of  Other 
Servants shall apply to the staff employed by the BBI Joint Undertaking.  

The Governing Board shall exercise, with respect to the staff of the BBI Joint Undertaking, 
the  powers  conferred  by  the  Staff  Regulations  on  the  Appointing  Authority  and  by  the 
Conditions  of  Employment  of  Other  Servants  on  the  Authority  Empowered  to  Conclude 
Contract of Employment (hereinafter "the appointing authority powers"). 

The Governing Board shall adopt, in accordance with Article 110 of the Staff Regulations, 
a decision based on Article 2 paragraph 1 of the Staff Regulations and on Article 6 of the 
Conditions of Employment of Other Servants delegating the relevant appointing authority 
powers to the Executive Director and defining the conditions under which this delegation 
of  powers  can  be  suspended.  The  Executive  Director  is  authorised  to  sub-delegate  those 
powers 

Where  exceptional  circumstances  so  require,  the  Governing  Board  may  by  way  of  a 
decision  temporarily  suspend  the  delegation  of  the  appointing  authority  powers  to  the 

29 

OJ 56, 4.3.1968, p. 1. 

EN 

14 

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Executive  Director  and  those  sub-delegated  by  the  latter  and  exercise  them  itself  or 
delegate them to one of its members or to a staff member of the Joint Undertaking other 
than the Executive Director 

The Governing Board shall adopt appropriate implementing rules to the Staff Regulations 
and the Conditions of Employment of Other Servants in accordance with Article 110 of the 
Staff Regulations. 

The  staff  resources  shall  be  determined  by  the  staff  establishment  plan  of  the  BBI  Joint 
Undertaking indicating the number of temporary posts by function group and by grade and 
the  number  of  contract  staff  expressed  in  full-time  equivalents,  in  line  with  its  annual 
budget. 

The staff of the BBI Joint Undertaking shall consist of temporary staff and contract staff. 

All cost related to staff shall be borne by the BBI Joint Undertaking. 

Article 7 
Seconded national experts and trainees 

The  BBI  Joint  Undertaking  may  make  use  of  seconded  national  experts  and  trainees  not 
employed by the Joint Undertaking. The number of seconded national experts expressed in 
full-time equivalents shall be added to information on staff as referred to in Article 6(4) of 
this Regulation in line with the annual budget. 

The  Governing  Board  shall  adopt  a  decision  laying  down  rules  on  the  secondment  of 
national experts to the BBI Joint Undertaking and on the use of trainees. 

3. 

4. 

5. 

6. 

1. 

2. 

Article 8 
Privileges and Immunities 

The  Protocol  on  the  Privileges  and  Immunities  of  the  Union  shall  apply  to  the  BBI  Joint 
Undertaking and its staff. 

Article 9 
Liability of the BBI Joint Undertaking 

1. 

2. 

3. 

The  contractual  liability  of  the  BBI  Joint  Undertaking  shall  be  governed  by  the  relevant 
contractual provisions and by the law applicable to the agreement, decision or contract in 
question. 

In the case of non-contractual liability, the BBI Joint Undertaking shall, in accordance with 
the general principles common to the laws of the Member States, make good any damage 
caused by its staff in the performance of their duties. 

Any  payment  by  the  BBI  Joint  Undertaking  in  respect  of  the  liability  referred  to  in 
paragraphs  1  and  2  and  the  costs  and  expenses  incurred  in  connection  therewith  shall  be 
considered  as  expenditure  of  the  BBI  Joint  Undertaking  and  shall  be  covered  by  the 
resources of the BBI Joint Undertaking. 

4. 

The BBI Joint Undertaking shall be solely responsible for meeting its obligations. 

Article 10 
Jurisdiction of the Court of Justice and applicable law  

1. 

The Court of Justice shall have jurisdiction under the conditions laid down in the Treaty as 
well as in the following cases: 

EN 

15 

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(a) 

in  any  dispute  between  the  Members  which  relates  to  the  subject  matter  of  this 
Regulation; 

(b)  pursuant  to  any  arbitration  clause  contained  in  agreements,  decisions  or  contracts 

concluded by the BBI Joint Undertaking; 

(c) 

(d) 

in disputes relating to compensation for damage caused by the staff of the BBI Joint 
Undertaking in the performance of their duties; 

in any dispute between the BBI Joint Undertaking and its servants within the limits 
and  under  the  conditions  laid  down  in  the  Staff  Regulations  of  Officials  and  the 
Conditions of Employment of Other Servants of the European Union. 

Regarding any matter not covered by this Regulation or by other acts of Union law, the law 
of the State where the seat of the BBI Joint Undertaking is located shall apply. 

Article 11 
Evaluation 

By  31  December  2017  the  Commission  shall  conduct  an  interim  evaluation  of  the  BBI 
Joint  Undertaking.  The  Commission  shall  communicate 
thereof, 
accompanied  by  its  observations,  to  the  European  Parliament  and  to  the  Council  by  30 
June 2018.  

the  conclusions 

On  the  basis  of  the  conclusions  of  the  interim  evaluation  referred  to  in  paragraph  1  the 
Commission may act in accordance with Article 4(5) or take any other appropriate action. 

Within six months after the winding up of the BBI Joint Undertaking, but no later than two 
years  after  the  triggering  of  the  winding  up  procedure  referred  to  in  clause  20  of  the 
Statutes  contained  in  the  Annex,  the  Commission  shall  conduct  a  final  evaluation  of  the 
BBI  Joint  Undertaking.  The  results  of  that  final  evaluation  shall  be  presented  to  the 
European Parliament and to the Council. 

Article 12 
Discharge 

The discharge of the budget implementation with regard to the Union contribution to the 
BBI  Joint  Undertaking  shall  be  part  of  the  discharge  given  by  the  European  Parliament, 
upon recommendation of the Council, to the Commission in accordance with the procedure 
provided for in Article 319 of the Treaty. 

The  BBI  Joint  Undertaking  shall  fully  cooperate  with  the  institutions  involved  in  the 
discharge procedure and provide, as appropriate, any necessary additional information. In 
this context, it may be requested to be represented in meetings with the relevant institutions 
or bodies and assist the Commission authorising officer by delegation. 

Article 13 
Ex-post audits 

Ex-post  audits  of  expenditure  on  indirect  actions  shall  be  carried  out  by  the  BBI  Joint 
Undertaking in accordance with Article 23 of Regulation (EU) No … [the Horizon 2020 
Framework  Programme]  as  part  of  the  Horizon  2020  Framework  Programme  indirect 
actions. 

To  ensure  coherence,  the  Commission  may  decide  to  carry  out  the  audits  referred  to  in 
paragraph 1.  

2. 

1. 

2. 

3. 

1. 

2. 

1. 

2. 

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16 

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1. 

2. 

3. 

4. 

5. 

Article 14 
Protection of the financial interests of the Members 

Without  prejudice  to  clause  16(4)  of  the  Statutes  contained  in  the  Annex,  the  BBI  Joint 
Undertaking shall grant Commission staff and other persons authorised by it, as well as the 
Court  of  Auditors,  access  to  its  sites  and  premises  and  to  all  the  information,  including 
information in electronic format, needed in order to conduct their audits. 

The  European  Anti-fraud  Office  (OLAF)  may  carry  out  investigations,  including  on-the-
spot checks and inspections, in accordance with the provisions and procedures laid down in 
Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 
1999  concerning  investigations  conducted  by  the  European  Anti-Fraud  Office  (OLAF)30 
and Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-
the-spot  checks  and  inspections  carried  out  by  the  Commission  in  order  to  protect  the 
European  Communities'  financial  interests  against  fraud  and  other  irregularities31  with  a 
view to establishing whether there has been fraud, corruption or any other illegal activity 
affecting the financial interests of the Union in connection with an agreement or decision 
or a contract funded under this Regulation. 

Without  prejudice  to  paragraphs  1  and  2,  contracts,  agreements  and  decisions,  resulting 
from the implementation of this Regulation shall contain provisions expressly empowering 
the Commission, the BBI Joint Undertaking, the Court of Auditors and OLAF to conduct 
such audits and investigations, according to their respective competences. 

The  BBI  Joint  Undertaking  shall  ensure  that  the  financial  interests  of  its  Members  are 
adequately  protected  by  carrying  out  or  commissioning  appropriate  internal  and  external 
controls. 

The  BBI  Joint  Undertaking  shall  accede  to  the  Interinstitutional  Agreement  of  25  May 
1999  between  the  European  Parliament,  the  Council  and  the  Commission  concerning 
internal  investigations  by  OLAF32.  The  BBI  Joint  Undertaking  shall  adopt  the  necessary 
measures needed to facilitate internal investigations conducted by OLAF. 

Article 15 
Confidentiality 

Without prejudice to Article 16, the BBI Joint Undertaking shall ensure the protection of sensitive 
information  whose  disclosure  could  damage  the  interests  of  its  Members  or  of  participants  in  the 
activities of the BBI Joint Undertaking. 

Article 16 
Transparency 

Regulation (EC) No 1049/2001 of the European Parliament and of the Council regarding 
public access to European Parliament, Council and Commission documents33, shall apply 
to documents held by the BBI Joint Undertaking. 

The  BBI  Joint  Undertaking  Governing  Board  may  adopt  practical  arrangements  for 
implementing Regulation (EC) No 1049/2001. 

OJ L 136, 31.05.1999, p. 1. 
OJ L 292, 15.11.1996, p. 2-5. 
OJ L 136, 31.5.1999, p. 15. 
OJ L 145, 31.5.2001, p. 43. 

1. 

2. 

30 
31 
32 
33 

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17 

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3. 

Without prejudice to Article 10, decisions taken by the BBI Joint Undertaking pursuant to 
Article  8  of  Regulation  (EC)  No  1049/2001  may  form  the  subject  of  a  complaint  to  the 
Ombudsman under the conditions laid down in Article 228 of the Treaty. 

Article 17 
Rules for participation and dissemination 

Regulation (EU) No … [Rules for participation and dissemination in Horizon 2020] shall apply to 
the actions funded by the BBI Joint Undertaking. In accordance with that Regulation, the 
BBI Joint Undertaking  shall  be  considered as a funding body and shall provide financial 
support to indirect actions as set out in clause 1 of the Statutes contained in the Annex. 

Article 18 
Support from the host State 

An administrative agreement may be concluded between the BBI Joint Undertaking and the State 
where its seat is located concerning privileges and immunities and other support to be provided by 
this State to the BBI Joint Undertaking. 

Article 19 
Initial actions 

1. 

The Commission shall be responsible for the establishment and initial operation of the BBI 
Joint  Undertaking  until  it  has  the  operational  capacity  to  implement  its  own  budget.  The 
Commission  shall  carry  out,  in  accordance  with  Union  law,  all  necessary  actions  in 
collaboration with the other Members and with the involvement of the competent bodies of 
the BBI Joint Undertaking. 

2. 

For that purpose,  

(a)  until the Executive Director takes up his duties following his/her appointment by the 
Governing  Board  in  accordance  with  clause  8  of  the  Annex,  the  Commission  may 
designate a Commission official to act as interim Executive Director and exercise the 
duties assigned to the Executive Director who may be assisted by a limited number 
of Commission officials: 

(b)  by  derogation  from  Article  6  (2)  of  this  Regulation,  the  interim  Director  shall 

exercise the appointing authority powers; 

(c) 

the Commission may assign a limited number of its officials on an interim basis. 

The interim Executive Director may authorise all payments covered by the appropriations 
provided  in  the  annual  budget  of  the  BBI  Joint  Undertaking  once  approved  by  the 
Governing  Board  and  may  conclude  agreements,  decisions  and  contracts,  including  staff 
contracts following the adoption of the BBI Joint Undertaking's staff establishment plan. 

The interim Executive Director shall in common accord with the Executive Director of the 
BBI Joint Undertaking and subject to the approval of the Governing Board determine the 
day  on  which  the  BBI  Joint  Undertaking  has  the  capacity  to  implement  its  own  budget. 
From  that  day,  the  Commission  shall  abstain  from  making  commitments  and  executing 
payments for the activities of the BBI Joint Undertaking. 

3. 

4. 

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

Article 20 
Entry into force 

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This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the Council 
The President 

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STATUTES OF THE BBI JOINT UNDERTAKING 

ANNEX 

1 - Tasks 

The BBI Joint Undertaking shall carry out the following tasks: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

ensure the establishment and sustainable management of the Joint Technology Initiative on 
Bio-Based Industries; 

mobilise the public and private sector resources needed; 

establish and develop close and long-term cooperation between the Union, industry and the 
other stakeholders; 

ensure the efficiency of the Joint Technology Initiative on Bio-Based Industries; 

reach the critical mass of research effort to embark on a long-term programme; 

monitor progress towards the achievement of the objectives of the BBI Joint Undertaking; 

support financially research and innovation indirect actions mainly through grants; 

information, communication, exploitation and dissemination activities by applying mutatis 
mutandis  the  provisions  of  Article  22  of  Regulation  (EU-  No…/2013  [the  Horizon  2020 
Framework Programme]; 

(i) 

any other task needed to achieve the objectives set out in Article 2 of this Regulation. 

2 - Members 

1. 

The Members of the BBI Joint Undertaking shall be the following: 

(a) 

the Union, represented by the Commission,  

(b)  upon  acceptance  of  these  Statutes,  by  means  of  a  letter  of  endorsement,  the  Bio-
based  Industries  Consortium  Aisbl  (hereinafter  referred  to  as  BIC),  a  non-profit 
organization  established  under  Belgium  law  (registration  number:  0521-857-822), 
with its permanent office in Brussels, Belgium 

3 - Changes to membership 

1. 

2. 

Provided that it contributes to the funding referred to in clause 12 to achieve the objectives 
of  the  BBI  Joint  Undertaking  set  out  in  Article  2  of  this  Regulation,  and  accepts  the 
Statutes of the BBI Joint Undertaking, any legal entity that directly or indirectly supports 
research and innovation in a Member State or in a country associated to the Horizon 2020 
Framework Programme may apply to become a Member of the BBI Joint Undertaking. 

Any application for new membership to the BBI Joint Undertaking shall be addressed to 
the  Governing  Board,  accompanied  by  a  proposal  to  adapt  the  composition  of  the 
Governing Board set out in clause 5. 

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3. 

4. 

5. 

6. 

The Governing Board shall assess the application taking into account the relevance and the 
potential  added  value  of  the  applicant  for  the  achievement  of  the  objectives  of  the  BBI 
Joint Undertaking. It shall then decide on the application. 

Any Member may terminate its membership to the BBI Joint Undertaking. The termination 
shall become effective and irrevocable six months after notification to the other Members. 
As of then, the former Member shall be discharged from any obligations other than those 
approved or incurred by the BBI Joint Undertaking prior to terminating the membership. 

Membership of the BBI Joint Undertaking may not be transferred to a third party without 
prior agreement of the Governing Board. 

The BBI Joint Undertaking shall publish on its website immediately upon any change to 
membership  pursuant  to  this  clause  an  updated  list  of  Members  of  the  BBI  Joint 
Undertaking together with the date when such change takes effect. 

4 - Organisation of the BBI Joint Undertaking 

1. 

The bodies of the BBI Joint Undertaking shall be:  

(a) 

(b) 

(c) 

(d) 

the Governing Board; 

the Executive Director; 

the Scientific Committee; 

the States Representatives Group. 

2. 

The Scientific Committee and the States Representatives Group shall be advisory bodies to 
the BBI Joint Undertaking. 

5 - Composition of the Governing Board 

1. 

The Governing Board shall be composed of the following:  

– 

– 

five representatives of the Commission;  

five representatives of the private Members, at least one of which should be a Small 
and Medium Enterprise representative. 

6 - Functioning of the Governing Board 

1. 

2. 

3. 

The Commission shall hold 50 % of the voting rights. The vote of the Commission shall be 
indivisible. The private Members shall hold an equal number of votes. The Members shall 
use their best efforts to achieve consensus. Failing consensus, the Governing Board shall 
take  its  decisions  by  a  majority  of  at  least 75%  of  all  votes,  including  the  votes  of  those 
who are not in attendance. 

The Governing Board shall elect its chairperson for a period of two years. 

The  Governing  Board  shall  hold  its  ordinary  meetings  twice  a  year.  It  may  hold 
extraordinary  meetings  at  the  request  of  the  Commission  or  of  a  majority  of  the 
representatives of the private Members or at the request of the chairperson. The meetings 

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of the Governing Board shall be convened by its chairperson and shall usually take place at 
the seat of the BBI Joint Undertaking. 

The Executive Director shall have the right to take part in the deliberations, but shall have 
no voting rights.  

The chairperson of the States Representatives Group shall have the right to attend meetings 
of the Governing Board as an observer. 

The  Governing  Board  may  invite,  on  a  case  by  case  basis,  other  persons  to  attend  its 
meetings as observers, in particular representatives of regional authorities of the Union and 
representatives of civil society. 

The  representatives  of  the  Members  shall  not  be  personally  liable  for  actions  they  have 
taken in their capacity as representatives on the Governing Board. 

The Governing Board shall adopt its own rules of procedure. 

7 - Tasks of the Governing Board 

1. 

The Governing Board shall have overall responsibility for the strategic orientation and the 
operations  of  the  BBI  Joint  Undertaking  and  shall  supervise  the  implementation  of  its 
activities. 

2. 

The Governing Board shall in particular carry out the following tasks: 

(a) 

assess, accept or reject applications for new membership in accordance with clause 3; 

(b)  decide  on  the  termination  of  the  membership  in  the  BBI  Joint  Undertaking  of  any 

Member that does not fulfil its obligations; 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

adopt the Financial rules of the BBI Joint Undertaking in accordance with Article 5 
of this Regulation; 

adopt  the  annual  budget  of  the  BBI  Joint  Undertaking,  including  the  staff 
establishment plan indicating the number of temporary posts by function group and 
by  grade  as  well  as  the  number  of  contract  staff  and  seconded  national  experts 
expressed in full-time equivalents; 

exercise the appointing authority powers with respect of the staff, in accordance with 
Article 6(2) of this Regulation; 

appoint, dismiss, extend the term of office of, provide guidance to and monitor the 
performance of the Executive Director; 

approve  the  organisational  structure  of  the  Programme  Office,  referred  to  in  clause 
9(5), upon recommendation by the Executive Director; 

adopt the annual work plan and the corresponding expenditure estimates, as proposed 
by  the  Executive  Director  after  having  consulted  the  Scientific  Committee  and  the 
States Representatives Group; 

approve  the  annual  additional  activities  plan  referred  to  in  Article  4(2)(b)  of  this 
Regulation  on  the  basis  of  a  proposal  from  the  private  Members  and  after  having 
consulted, where appropriate, an ad hoc advisory group 

approve the annual accounts; 

approve the annual activity report, including the corresponding expenditure; 

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(l) 

arrange,  as  appropriate,  for  the  establishment  of  an  internal  audit  capability  of  the 
BBI Joint Undertaking; 

(m)  approve  the  calls  as  well  as,  where  appropriate,  the  related  rules  for  submission, 

(n) 

(o) 

evaluation, selection, award and review procedures; 

approve the list of actions selected for funding; 

establish 
recommendation by the Executive Director; 

the  BBI 

Joint  Undertaking's  communications  policy  upon  a 

(p)  where  appropriate,  establish  implementing  rules  in  line  with  Article  6(3)  of  this 

Regulation; 

(q)  where appropriate, establish rules on the secondment of national experts to the BBI 
Joint Undertaking and on the use of trainees in line with Article 7 of this Regulation;  

(r)  where appropriate, set up advisory groups in addition to the bodies to the BBI Joint 

Undertaking; 

(s)  where appropriate, submit to the Commission any request to amend this Regulation 

proposed by any Member of the BBI Joint Undertaking; 

(t) 

be responsible for any task that is not specifically allocated to one of the bodies of 
the BBI Joint Undertaking which it may assign to one of those bodies; 

8 – Appointment, dismissal or extension of the term of office of the Executive Director 

1. 

The  Executive  Director  shall  be  appointed  by  the  Governing  Board,  from  a  list  of 
candidates  proposed  by  the  Commission,  following  an  open  and  transparent  selection 
procedure. The Commission shall associate the representation from the other Members of 
the BBI Joint Undertaking in the selection procedure as appropriate.  

In particular, an appropriate representation from the other Members of the BBI Joint Undertaking 
shall be ensured at the pre-selection stage of the selection procedure. For that purpose, the 
private Members shall appoint by common accord a representative as well as an observer 
on behalf of the Governing Board.  

2. 

3. 

4. 

5. 

The Executive Director is a member of staff and shall be engaged as a temporary agent of 
the BBI Joint Undertaking under point (a) of Article 2 of the Conditions of Employment of 
Other Servants of the Union. 

For  the  purpose  of  concluding  the  contract  of  the  Executive  Director,  the  BBI  Joint 
Undertaking shall be represented by the chairperson of the Governing Board. 

The term of office of the Executive Director shall be three years. By the end of that period, 
the  Commission  associating  the  private  Members  as  appropriate  shall  undertake  an 
assessment of the performance of the Executive Director and the BBI Joint Undertaking's 
future tasks and challenges. 

The Governing Board, acting on a proposal from the Commission which takes into account 
the assessment referred to in paragraph 3, may extend the term of office of the Executive 
Director once, for no more than four years. 

An  Executive  Director  whose  term  of  office  has  been  extended  may  not  participate  in 
another selection procedure for the same post at the end of the overall period. 

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6. 

1. 

2. 

3. 

4. 

The  Executive  Director  may  be  dismissed  only  upon  a  decision  of  the  Governing  Board 
acting on a proposal from the Commission associating the private Members as appropriate. 

9 - Tasks of the Executive Director 

The  Executive  Director  shall  be  the  chief  executive  responsible  for  the  day-to-day 
management  of  the  BBI  Joint  Undertaking  in  accordance  with  the  decisions  of  the 
Governing Board. 

The Executive Director shall be the legal representative of the BBI Joint Undertaking. He/ 
she shall be accountable to the Governing Board. 

The Executive Director shall implement the budget of the BBI Joint Undertaking.  

The Executive Director shall in particular carry out the following tasks in an independent 
manner: 

(a)  prepare  and  submit  for  adoption  to  the  Governing  Board  the  draft  annual  budget, 
including  the  corresponding  staff  establishment  plan  indicating  the  number  of 
temporary  posts  in  each  grade  and  function  group  and  the  number  of  contract  staff 
and seconded national experts expressed in full-time equivalents; 

(b)  prepare  and  submit  for  adoption  to  the  Governing  Board  the  annual  work  plan  and 

the corresponding expenditure estimates; 

(c) 

submit for approval to the Governing Board the annual accounts; 

(d)  prepare and submit for approval to the Governing Board  the annual activity report, 

including the corresponding expenditure; 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

submit for approval to the Governing Board the list of actions selected for funding; 

sign individual agreements or decisions; 

sign procurement contracts; 

implement the BBI Joint Undertaking's communications policy; 

organise,  direct  and  supervise  the  operations  and  the  staff  of  the  BBI  Joint 
Undertaking  within  the  constraints  of  the  delegation  by  the  Governing  Board  as 
provided for in Article 6(2) of this Regulation; 

establish  and  ensure  the  functioning  of  an  effective  and  efficient  internal  control 
system and report any significant change to it to the Governing Board; 

ensure that risk assessment and risk management are performed; 

take  any  other  measures  needed  for  assessing  the  progress  of  the  BBI  Joint 
Undertaking towards achieving its objectives; 

(m)  perform  any  other  tasks  entrusted  or  delegated  to  the  Executive  Director  by  the 

Governing Board. 

5. 

The Executive Director shall set up a Programme Office for the execution, under his/ her 
responsibility,  of  all  support  tasks  arising  from  this  Regulation.  The  Programme  Office 
shall be composed of the staff of BBI Joint Undertaking and shall in particular carry out 
the following tasks: 

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(a)  provide  support  in  establishing  and  managing  an  appropriate  accounting  system  in 

accordance with the Financial rules of the BBI Joint Undertaking; 

(b)  manage the calls as provided for in the annual work plan and the administration of 

the agreements or decisions, including their coordination; 

(c)  provide  to  the  Members  and  the  other  bodies  of  the  BBI  Joint  Undertaking  all 
relevant information and support necessary for them to perform their duties as well 
as responding to their specific requests; 

(d) 

act as the secretariat of the bodies of the BBI Joint Undertaking and provide support 
to any advisory group set up by the Governing Board . 

10 - Scientific Committee 

1. 

2. 

3. 

The  Scientific  Committee  shall  consist  of  no  more  than  ten  members.  It  shall  elect  a 
chairperson from amongst its members. 

The  members  shall  reflect  a  balanced  representation  of  world-wide  recognised  experts 
from  academia,  industry,  small  and  medium  enterprises,  non-governmental  organisations 
and  regulatory  bodies.  Collectively,  the  Scientific  Committee  members  shall  have  the 
necessary  scientific  competencies  and  expertise  covering  the  technical  domain  needed  to 
make science-based recommendations to the BBI Joint Undertaking. 

The  Governing  Board  shall  establish  the  specific  criteria  and  selection  process  for  the 
composition  of  the  Scientific  Committee  and  shall  appoint  its  members.  The  Governing 
Board  shall  take  into  consideration  the  potential  candidates  proposed  by  the  BBI  States 
Representatives Group. 

4. 

The Scientific Committee shall carry out the following tasks: 

5. 

6. 

7. 

1. 

2. 

(a) 

(b) 

advise on the scientific priorities to be addressed in the annual work plans; 

advise on the scientific achievements described in the annual activity report. 

The Scientific Committee shall meet at least once a year. The meetings shall be convened 
by its chairperson. 

The Scientific Committee may, with the agreement of the chairperson, invite other persons 
to attend its meetings. 

The Scientific Committee shall adopt its own rules of procedure. 

11 - States Representatives Group 

The BBI States Representatives Group shall consist of one representative of each Member 
State and of each country associated to the Horizon 2020 Framework Programme. It shall 
elect a chairperson among its members. 

The  States  Representatives  Group  shall  meet  at  least  once  a  year.  The  meetings  shall  be 
convened by its chairperson. The Executive Director and the chairperson of the Governing 
Board or their representatives shall attend the meetings. 

The chairperson of the States Representatives Group may invite other persons to attend its 
meetings  as  observers,  in  particular  representatives  of  regional  authorities  of  the  Union, 
representatives of civil society or representatives of SME associations. 

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3. 

The  States  Representatives  Group  shall  in  particular  review  information  and  provide 
opinions on the following matters: 

(a)  programme progress in the BBI Joint Undertaking and achievement of its targets; 

(b)  updating of strategic orientation; 

(c) 

(d) 

(e) 

links to the Horizon 2020 Framework Programme; 

annual work plans; 

involvement of SMEs. 

4. 

The States Representatives Group shall also provide information to and act as an interface 
with the BBI Joint Undertaking on the following matters: 

(a) 

(b) 

(c) 

the  status  of  relevant  national  or  regional  research  and  innovation  programmes  and 
identification  of  potential  areas  of  cooperation,  including  deployment  of  relevant 
technologies; 

specific  measures  taken  at  national  or  regional  level  with  regard  to  dissemination 
events, dedicated technical workshops and communication activities. 

specific  measures  taken  at  national  or  regional  level  with  regard  to  deployment 
activities in relation to the Joint Technology Initiative on Bio-based Industries. 

5. 

The States Representatives Group may issue, on its own initiative, recommendations to the 
BBI Joint Undertaking on technical, managerial and financial matters, in particular when 
those matters affect national or regional interests. 

The BBI Joint Undertaking shall inform the States Representatives Group of the follow up 
it has given to such recommendations. 

6. 

The States Representatives Group shall adopt its own rules of procedure. 

12 - Sources of financing  

1. 

2. 

The  BBI  Joint  Undertaking  shall  be  jointly  funded  by  the  Union  and  the  Members  other 
than  the  Union  or  their  constituent  entities  through  financial  contributions  paid  in 
instalments  and  contributions  consisting  of  the  costs  incurred  by  them  in  implementing 
indirect actions that are not reimbursed by the BBI Joint Undertaking. 

The  administrative  costs  of  the  BBI  Joint  Undertaking  shall  not  exceed  EUR  60  million 
and  shall  be  covered  through  financial  contributions  divided  equally  on  an  annual  basis 
between the Union and the Members other than the Union. If part of the contribution for 
administrative costs is not used, it may be made available to cover the operational costs of 
the BBI Joint Undertaking. 

3. 

The operational costs of the BBI Joint Undertaking shall be covered through: 

(a) 

(b) 

(c) 

a financial contribution by the Union; 

a financial contribution by the Members other than the Union; 

in  kind  contributions  by  the  Members  other  than  the  Union  or  their  constituent 
entities consisting of the costs incurred by them in implementing indirect actions less 
the  contribution  of  the  BBI  Joint  Undertaking  and  any  other  Union  contribution  to 
those costs. 

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4. 

5. 

6. 

7. 

8. 

The  financial  contribution  by  the  Members  other  than  the  Union  to  the  operational  costs 
referred to in paragraph 3(b) shall be at least EUR 182.50 million over the period provided 
for in Article 1 of this Regulation. 

The resources of the BBI Joint Undertaking entered to its budget shall be composed of the 
following contributions: 

(a)  Members' financial contributions to the administrative costs; 

(b)  Members' financial contributions to the operational costs; 

(c) 

(d) 

any revenue generated by the BBI Joint Undertaking; 

any other financial contributions, resources and revenues. 

Any  interest  yielded  by  the  contributions  paid  to  the  BBI  Joint  Undertaking  by  its 
Members shall be considered to be its revenue. 

All  resources  of  the  BBI  Joint  Undertaking  and  its  activities  shall  be  devoted  to  the 
objectives set out in Article 2 of this Regulation. 

The BBI Joint Undertaking shall own all assets generated by it or transferred to it for the 
fulfilment of its objectives set out in Article 2 of this Regulation  

Except  when  the  BBI  Joint  Undertaking  is  wound  up  pursuant  to  clause  20,  any  excess 
revenue over expenditure shall not be paid to the Members of the BBI Joint Undertaking. 

13 - Financial commitments 

Financial  commitments  of  the  BBI  Joint  Undertaking  shall  not  exceed  the  amount  of  financial 
resources available or committed to its budget by its Members. 

The financial year shall run from 1 January to 31 December. 

14 - Financial year 

15 - Operational and financial planning 

1. 

2. 

3. 

4. 

5. 

The  Executive  Director  shall  submit  for  adoption  to  the  Governing  Board  a  draft  annual 
work plan, which shall include a detailed plan of the research and innovation activities, the 
administrative activities and the corresponding expenditure estimates for the coming year. 
The draft work plan shall also include the estimated value of the contributions to be made 
in accordance with clause 12(3)(c).  

The annual work plan for a particular year shall be adopted by the end of the previous year. 
The annual work plan shall be made publicly available. 

The  Executive  Director  shall  prepare  the  draft  annual  budget  for  the  following  year  and 
submit it to the Governing Board for adoption. 

The  annual  budget  for  a  particular  year  shall  be  adopted  by  the  Governing  Board  by  the 
end of the previous year. 

The annual budget shall be adapted in order to take into account the amount of the Union 
contribution as set out in the Union budget. 

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16 - Operational and financial reporting 

1. 

The Executive Director shall report annually to the Governing Board on the performance 
of his duties in accordance with the Financial rules of the BBI Joint Undertaking. 

By 15 February of each year the Executive Director shall submit to the Governing Board 
for approval an annual activity report on the progress made by the BBI Joint Undertaking 
in the previous calendar year, in particular in relation to the annual work plan for that year. 
That report shall include, inter alia, information on the following matters: 

(a) 

(b) 

(c) 

research, innovation and other actions carried out and the corresponding expenditure; 

the  actions  submitted,  including  a  breakdown  by  participant  type,  including  SMEs, 
and by country; 

the actions selected for funding, including a breakdown by participant type, including 
SMEs, and by country and indicating the contribution of the BBI Joint Undertaking 
to the individual participants and actions. 

Once approved by the Governing Board, the annual activity report shall be made publicly 
available. 

The  BBI  Joint  Undertaking  shall  report  annually  to  the  Commission  in  accordance  with 
Article 60(5) of Regulation (EU, Euratom) No 966/2012. 

The  accounts  of  the  BBI  Joint  Undertaking  shall  be  examined  by  an  independent  audit 
body as laid down in Article 60(5) of Regulation (EU, Euratom) No 966/2012. 

The  accounts  of  the  BBI  Joint  Undertaking  shall  not  be  subject  to  examination  by  the 
Court of Auditors. 

2. 

3. 

4. 

17 - Internal audit  

The Commission's internal auditor shall exercise the same powers over the BBI Joint Undertaking 
as those exercised in respect of the Commission. 

1. 

2. 

1. 

2. 

18 - Liability of Members and insurance 

The financial liability of the Members for the debts of the BBI Joint Undertaking shall be 
limited to their contribution already made for the administrative costs. 

The BBI Joint Undertaking shall take out and maintain appropriate insurance. 

19 - Conflict of interest 

The BBI Joint Undertaking, its bodies and staff shall avoid any conflict of interest in the 
implementation of their activities. 

The  BBI  Joint  Undertaking  Governing  Board  may  adopt  rules  for  the  prevention  and 
management  of  conflicts  of  interest  in  respect  of  its  Members,  bodies  and  staff.  In  those 
rules provision shall be made to avoid a conflict of interest for the representatives of the 
Members serving in the Governing Board. 

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20 - Winding up 

1. 

2. 

3. 

4. 

5. 

The BBI Joint Undertaking shall be wound up at the end of the period defined in Article 1 
of this Regulation. 

The winding up procedure shall be automatically triggered if the Commission or all private 
Members withdraw from the BBI Joint Undertaking. 

For the purpose of conducting the proceedings to wind up the BBI Joint Undertaking, the 
Governing  Board  shall  appoint  one  or  more  liquidators,  who  shall  comply  with  the 
decisions of the Governing Board. 

When  the  BBI  Joint  Undertaking  is  being  wound  up,  its  assets  shall  be  used  to  cover  its 
liabilities and the expenditure relating to its winding up. Any surplus shall be distributed 
among  the  Members  at  the  time  of  the  winding  up  in  proportion  to  their  financial 
contribution to the BBI Joint Undertaking. Any such surplus distributed to the Union shall 
be returned to the Union budget. 

An  ad  hoc  procedure  shall  be  set  up  to  ensure  the  appropriate  management  of  any 
agreement  concluded  or  decision  adopted  by  the  BBI  Joint  Undertaking  as  well  as  any 
procurement contract with duration longer than its duration. 

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LEGISLATIVE FINANCIAL STATEMENT  

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal for a Council Regulation on the Bio-based Industries Joint Undertaking  
Policy area(s) concerned in the ABM/ABB structure34  

1.2. 

Policy area: Horizon 2020 - The Framework Programme for Research and Innovation 

Activity:  Societal  challenges  "Food  security,  sustainable  agriculture,  marine  and  marine 
research  and  the  bioeconomy"  and  Industrial  Leadership  "Key  Enabling  Technologies 
(BIOKET)" 

1.3. 

Nature of the proposal/initiative  

X 

The proposal/initiative relates to a new action  

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

(cid:133) 
action35  

(cid:133) 

(cid:133) 

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

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

1.4. 

Objective(s) 

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

To  set  up  the  BBI  Joint  Undertaking  as  a  new  scheme  of  Public  Private  Partnership 
between the Commission and the industry for research and innovation funding.  

To organise the competitive calls for proposals, evaluation and selection of projects where 
industry will co-fund the selected collaborative research projects performed in a Member 
State  or  a  country  associated  to  the  Horizon  2020,  together  with  academic,  SMEs,  and 
other partners supported by the funds coming from the BBI Joint Undertaking;  

1.4.2. 

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

(a) 

(b) 

(c) 

to  demonstrate  technologies  that  enable  new  chemical  building  blocks,  new 
materials, and new consumer products from European biomass and which replace the 
need for fossil based inputs; 

to  develop  business  models  that  integrate  economic  actors  along  the  whole  value 
chain  from  supply  of  biomass  to  biorefinery  plants  to  consumers  of  bio-based 
materials,  chemicals  and  fuels,  including  through  creating  new  cross-sector 
interconnections and supporting cross-industry clusters; and 

to set up flagship biorefinery plants that deploy the technologies and businessmodels 
for bio-based materials, chemicals and fuels and demonstrate cost and performance 
improvements to levels that are competitive with fossil based alternatives. 

ABM/ABB activity(ies) concerned 

(a)  To  monitor  and  follow-up  the  financial  and  scientific  aspects  of  projects  having 

concluded a grant agreement with the BBI Joint Undertaking. 

(b)  To  organise  the  calls  for  tender  necessary  to  the  operations  of  the  BBI  Joint 

Undertaking. 

34 
35 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

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(c)  To set up and implement all procedures of the BBI Joint Undertaking. 

(d)  To organise the dissemination activities of the BBI Joint Undertaking. 

(e)  To organise any other activity linked to the BBI Joint Undertaking. 

1.4.3.  Expected result(s) and impact 

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

A significant increase in private research investment with: 

– 

– 

– 

Five new building blocks for the chemical industry by 2020 

Fifty new biobased materials by 2020 

Five flagship biorefinery plants by 2020 

A shorter time to market with: 

– 

– 

– 

Thirty new consumer products by 2020 

Ten new bio-based value chains by 2020 

A broad participation of SMEs  

1.4.4. 

Indicators of results and impact  

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

A  set  of  quantitative  and  qualitative  performance  indicators  (KPI,  key  performance 
indicators) will be established to follow the implementation of the BBI Joint Undertaking. 
These key performance indicators will measure the impact of the Joint Undertaking on EU 
competitiveness and the research environment for biobased and renewable industries. The 
quantitative indicators will be measured on a large scale in a comparative and systematic 
manner, while the qualitative approach will include case studies and technical audits. The 
key performance indicators should be assessed against the baseline of the state of affairs in 
the  years  prior  to  the  start  of  the  Joint  Undertaking  to  help  assess  additionality  effects 
during its lifetime. 

The  progress  of  the  Joint  Undertaking  will  be  continuously  monitored  against  a  set  of 
objectively verifiable indicators including: 

– 

– 

– 

– 

– 

– 

– 

– 

monitoring of public (EC and other) and private funding; 

follow-up of additionality; 

selection of projects and allocation of funding; 

technical monitoring against well-defined specific programme milestones; 

adherence to time schedule; 

quantified monitoring of market penetration in target sectors; 

level of SME participation and of participation from the newer Member States; 

sustainability indicators. 

At mid-term, the Joint Undertaking will be evaluated by independent experts on behalf of 
the  Commission.  This  evaluation  will  cover  the  quality  and  efficiency  of  the  Joint 
Undertaking  and  its  progress  towards  its  objectives  and  make  recommendations  for  any 
necessary  re-adjustment  of  the  programme  and  if  applicable,  consideration  of  an  exit 
strategy.  

EN 

31 

   EN 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

To set-up the Joint Undertaking as a new structure of Partnership between the Commission 
and Industry for research and innovation funding. 

To  organise  competitive  calls  for  proposals,  evaluation  and  selection  of  projects  where 
industry will co-fund the selected collaborative research projects. 

To monitor and follow up financial and scientific aspects of projects having concluded a 
grant agreement with BBI Joint Undertaking. 

To set-up and implement all procedures of the BBI Joint Undertaking including financial 
auditing. 

To organise the dissemination and communication activities of the BBI Joint Undertaking. 

To organise any other activity linked to the BBI Joint Undertaking. 

1.5.2.  Added value of EU involvement 

A  coordinated  approach  at  EU  level  is  also  important  for  the  development  of  bio-based 
industries,  because  the  setting  up  of  their  value  chains  requires  linking  stakeholders  in 
areas  with  strong  agricultural  and  forestry  sectors  to  stakeholders  with  a  strong 
technological  and  industrial  base.  These  may  not  be  situated  in  the  same  Region  or 
Member State, which can add further complications to an already complex scenario. 

1.5.3.  Lessons learned from similar experiences in the past 

A number of small scale initiatives by Member States or Regions have recognised that the 
successful development of the bioeconomy is highly dependent on effective transnational 
cooperation. This is reflected in a growing number of collaborations between national and 
regional bioeconomy clusters, for example between IAR and Wagralim, or CLIB2021 and 
BE-BASIC. Although these collaborations between Regions and clusters look promising at 
first sight, they are also often affected  by the differences in funding levels  and  financing 
rules. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

There may be compatibility in the orientations both in Horizon 2020 and in the Structural 
Funds,  for  supporting  RTD  activities  -especially  on  innovation.  The  different  new  legal 
frameworks, programming mechanisms and approaches in terms of participation have to be 
considered.  Synergies  between  funding  actions  in  Horizon  2020  and  funds  of  Member 
States  and  regions  could  be  possible.  Being  the  PPP  a  key  enabler  for  bridging  the 
Research  and  Innovation  activities  with  the  regional  clusters  organised  under  the  Smart 
Specialisation Strategy it may be instrumental for facilitating combination of these sources 
of funding and increase efficiency of the action. Also synergies can be considered to access 
new  financial  instruments  as  the  RSFF  (Risk  Sharing  Funding  Facility)  of  EIB,  for  the 
deployment. 

EN 

32 

   EN 

1.6. 

Duration and financial impact  

X 

X 

X 

X 

Proposal/initiative of limited duration  

Proposal/initiative in effect from 01/01/2014 to 31/12/2024  

Financial impact from 01/01/2014 to 31/12/2020 for commitment appropriations 

Financial impact from 01/01/2014 to 31/12/2024 for payment appropriations 

(cid:133) 

Proposal/initiative of unlimited duration 

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

Followed by full-scale operation. 

1.7.  Management mode(s) envisaged36  

(cid:133)  Direct management by the Commission through: 

(cid:133) 

(cid:133) 

X 

(cid:133) 

(cid:133) 

X 

(cid:133) 

Executive agencies  

Shared management with Member States: 

Indirect management by entrusting budget implementation tasks to: 

International organisations and their agencies (please specify); 

The European Investment Bank; 

bodies referred to in Article 209 FR; 

Public law bodies; 

(cid:133)  Bodies governed by private law with a public service mission to the extent that they 
provide adequate financial guarantees; 

(cid:133)  Bodies  governed  by  the  private  law  of  a  Member  State  that  are  entrusted  with  the 
implementation  of  a  public-private  partnership  and  that  provide  adequate  financial 
guarantees; 

Persons entrusted with the implementation of specific actions in the CFSP pursuant 

(cid:133) 
to Title V of the TEU and identified in the relevant basic act. 

36 

Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

EN 

33 

   EN 

                                                 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The  BBI  Joint  Undertaking  will  be  monitored through  intermediary  contacts  and  as 
provided in Clauses 6 and 16 of the Statutes. 

2.2.  Management and control system  

2.2.1. 

Internal control framework  

The Commission through the Authorising Officer by Delegation will ensure that the rules 
applicable to the BBI JTI JU fully comply with the requirements of Article 60 and 61 of 
the  Financial  Regulation.  Monitoring  arrangements,  including  membership  of  the 
Governing  board,  of  the  BBI  JTI  JU  and  reporting  arrangements  will  ensure  that  the 
Commission services can meet the accountability requirements both to the College and to 
the Budgetary Authority. 

The internal control framework for the BBI JTI JU will be built on: 

-the  implementation  of  the  Internal  Control  Standards  offering  at  least  equivalent 
guarantees to those of the Commisson; 

-procedures  for  selecting  the  best  projects  through  independent  evaluation,  and  for 
translating them into legal instruments; 

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

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

- ex post audits on a sample of claims as part of the Horizon 2020 ex-post audits; 

- and scientific evaluation of project results. 

Various  measures  will  be  established  to  mitigate  the  inherent  risk  of  conflict  of  interest 
within  the  BBI  JTI  JU,  especially  equal  votes  for  the  Commission  and  for  industrial 
partners in the Governing Board, selection of the Director by the Governing Board based 
on  a  proposal  by  the  Commission,  independence  of  staff,  evaluations  by  independent 
experts  based  on  published  selection  criteria  together  with  appeal  mechanisms  and  full 
declarations of any interests. The establishment of ethical and organisational values will be 
one of the key roles of the JTI JU, and will be monitored by the Commission. 

2.2.2.  Costs and benefits of controls 

The  Commission's  internal  auditor  shall  exercise  the  same  powers  over  the  Joint 
Undertaking  as  those  exercised  in  respect  of  the  Commission.  Moreover,  the  Governing 
Board may arrange, as appropriate, for the establishment of an internal audit capability of 
the  Joint  UndertakingThe  Executive  Director  of  the  BBI  JTI  JU,  as  Authorising  Officer, 
will be required to introduce a cost-effective system of internal control and management. 
He/she  will  be  required  to  report  to  the  Commission  on  the  internal  control  framework 
adopted. 

The Commission will monitor the risk of non-compliance through the reporting system that 
it will develop, as well as by following the results of ex post audits on the recipients of EU 
funds from the BBI JTI, as part of ex post audits covering the whole of the Horizon 2020.  

EN 

34 

   EN 

 
The control system established will need to take account of the strong feeling, amongst the 
recipients of EU funds as well as amongst the legislative authority, that the control burden 
required to attain an error limit of 2% has become too great. This runs the risk of lowering 
the attractiveness of the Union's Research programme, and so negatively affecting Union 
research and innovation. 
The  European  Council  of  February  4th  2011  concluded  that  ‘it  is  crucial  that  EU 
instruments aimed at fostering R&D&I be simplified in order to facilitate their take-up by 
the  best  scientists  and  the  most  innovative  companies,  in  particular  by  agreeing  between 
the relevant institutions a new balance between trust and control and between risk taking 
and risk avoidance’ (see EUCO 2/1/11 REV1, Brussels 8 March 2011). 

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

There is therefore an acceptance among stakeholders and Institutions that the whole range 
of  objectives  and  interests,  especially  the  success  of  the  Research  policy,  international 
competitiveness and scientific excellence, should be considered, along with the error rate. 
At the same time, there is a clear need to manage the budget in an efficient and effective 
manner, and to prevent fraud and waste.  

As  stated  above,  the  Commission  will  monitor  the  risk  of  non-compliance  through  the 
reporting system that it will establish , as well as by following the results of ex post audits 
on the recipients of EU funds from the BBI JTI JU, as part of the ex post audits covering 
the whole of the Horizon 2020.  

2.2.3.  Expected level of risk of non-compliance  

As  the  Commission  reported  in  the  Legislative  Financial  Statement  for  Horizon  2020,  it 
remains  the  ultimate  objective  to  achieve  a  residual  error  rate  of  less  than  2%  of  total 
expenditure over the lifetime of the programme, and to that end, it has introduced a number 
of simplification measures. However, the other objectives set out above as well as the costs 
of controls need to be considered. 

As  the  rules  of  participation  in  the  BBI  JTI  JU  are  basically  the  same  as  those  that  the 
Commission will use, and with a population of beneficiaries with a similar risk profile to 
those of the Commission, it can be expected that the level of error will be similar to that 
established by the Commission for Horizon 2020, i.e. to give reasonable assurance that the 
risk of error over the course of the multiannual expenditure period is, on an annual basis, 
within a range of 2-5 %, with the ultimate aim to achieve a residual level of error as close 
as possible to 2 % at the closure of the multi-annual programmes, once the financial impact 
of all audits, correction and recovery measures have been taken into account. 

See the Legislative Financial Statement for Horizon 2020 for full details of the error rate 
expected with respect to participants. 

2.3.  Measures to prevent fraud and irregularities 

The  Commission  will  ensure  that  procedures  to  fight  against  fraud  at  all  stages  of  the 
management process are applied by the BBI JTI JU. The proposals for Horizon 2020 have 
been  subject  to  fraud  proofing  and  an  assessment  of  their  impact.  Overall  the  measures 
proposed  should  have  a  positive  impact  on  the  fight  against  fraud,  especially  the  greater 
emphasis on risk based audit and reinforced scientific evaluation and control. 

EN 

35 

   EN 

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

The  Commission  will  ensure  that  cooperation  with  its  services  from  the  BBI  JTI  JU  in 
matters relating to fraud and irregularity will and be strong.  

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

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

EN 

36 

   EN 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

•  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure

Contribution  

Heading of 
multiannual 
financial 
framework 

Heading 1A – Competitiveness for 
growth and jobs 

Diff./non-
diff. 

from 
EFTA 
countries

from 
candidate 
countries 

from 
third 
countries 

within the 
meaning of 
Article 
18(1)(aa) of 
the Financial 
Regulation  

1A 

08  02  07  32 
challenges – JTI BBI  

-  Societal 

Diff. 

YES  YES 

YES 

YES 

The  annual  budget  of  Bio-Based  Industries  JU  commitment  and  payment  appropriations  is 
financed by: 

-  08.020201  Leadership  in  nanotechnologies,  advanced  materials,  biotechnology  and 
advanced manufacturing and processing: 15% 

-  08.020302  Improving  food  security,  developing  sustainable  agriculture,  marine  and 
maritime research and the bio-economy: 85% 

The yearly financial contribution per budget line is indicated in the table below. 
EUR million (to three decimal places) 

Budget line 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

total 

7,793 

30,314 

24,411 

20,768 

21, 318 

21,529 

23,867 

150,000 

44,162 

171,782 

138,332 

117,685  120,803  121,998  135,238 

850,000 

in 

08.020201 
Leadership 
nanotechnologies, 
advanced 
materials, 
biotechnology  and 
advanced 
manufacturing  and 
processing 

food 

08.020302 
Improving 
security, 
developing 
sustainable 
agriculture,  marine 
maritime 
and 
research  and 
the 
bio-economy 

Total 

51,955 

202,096 

162,743 

138,453  142,121  143,527  159,105  1.000,000 

EN 

37 

   EN 

 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
Framework:  

1A 

Heading 1A – Competiveness for growth and jobs 
Budget line: 08 02 07 32 – Societal challenges – JTI BBI  

EUR million (to three decimal places) 

BBI Joint Undertaking 

Title 1 - Staff expenditure 

Title  2  -  Infrastucture  and 
operating expenditure 

Title  3 
expenditure 

-  Operational 

TOTAL appropriations 
for BBI Joint 
Undertaking 

Commitments 

Payments 
Commitments 

Payments 

Commitments 

Payments 

Commitments 

Payments 

Year 

Year 

Year 

Year 

Year 

Year 

2014 

2015 

2016 

2017 

2018 

2019 

Year 
2020  

Year 

2021 to 
2024 

TOTAL 

0,498 

0,498 
1,457 

1,457 

0,651 

0,651 
1,445 

1,445 

0,664 

0,664 
1,579 

1,579 

0,678 

0,678 
1,775 

1,775 

0,691 

0,691 
1,930 

1,930 

0,705 

0,705 
1,822 

1,822 

3,745 

0,719 
2,36 

1,292 

50,000 

200,000 

160,500 

136,000 

139,500 

141,000 

153,.000 

0 

130,000 

94,660 

95,680 

106,996 

119,776 

216,444 

7,632 

7,632 
12,368 

12,368 

980,000 

980,000 

0 

3,026 
0 
1,068 

0 

216,444 

0 

51,955 

202,096 

162,743 

138,453 

142,121 

143,527 

159,105 

1.000,000 

1,955 

132,096 

96,903 

98,133 

109,617 

122,303 

218,455 

1.000,000 

220,538 

(1) 

(2) 
(1a) 

(2a) 

(3a) 

(3b) 

=1+1a 
+3a 

=2+2a 

+3b 

Bio-Based Industries Joint Undertaking is based on a shared costs basis with industry.  

EN 

38 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial  
framework:  

1A 

‘Administrative expenditure 

Year 

2014 

Year 

2015 

Year 

2016 

Year 

2017 

Year 

2018 

Year 

2019 

Year 

Years 

2020 

2021-2024 

TOTAL 

DG: RTD 

(cid:121) Human resources  

(cid:121) Other administrative expenditure  

0,393 

0,400 

0,408 

0,417 

0,425 

0,433 

0,441 

0 

0 

0 

0 

0 

0 

0 

TOTAL DG RTD 

Appropriations  

0,393 

0,400 

0,408 

0,417 

0,425 

0,433 

0,441 

p.m. 

0 

p.m. 

TOTAL appropriations 
under HEADING 1A 
of the multiannual financial framework  

(Total 
commitments 
Total payments) 

= 

0,393 

0,400  

0,408 

0,417 

0,425 

0,433 

0,441 

p.m. 

2,917 

0 

2,917 

2,917 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

52,348 

202,496 

163,151 

138,870 

142,546 

143,960 

159,546 

1.002,917 

Payments 

2,348 

132,496 

97,311 

98,550 

110,042 

122,736 

218,896 

220,538 

1.002,917 

Year 

2014 

Year 

2015 

Year 

2016 

Year 

2017 

Year 

2018 

Year 

2019 

Year 

Years 

2020 

2021-2024 

TOTAL 

EN 

39 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on BBI Joint Undertaking's appropriations  

(cid:133) 

X 

The proposal/initiative does not require the use of operational appropriations  

The proposal/initiative requires the use of operational appropriations, as described below: 

Indicate 
objectives 
and 
outputs  

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 

2018 

Year  
2019 

Year  
2020-2024 

total 

(cid:216) 

Type

37 

Average 
cost 

r
e
b
m
u
N

t
s
o
C

r
e
b
m
u
N

t
s
o
C

r
e
b
m
u
N

t
s
o
C

r
e
b
m
u
N

t
s
o
C

r
e
b
m
u
N

t
s
o
C

r
e
b
m
u
N

t
s
o
C

r
e
b
m
u
N

s
t
s
o
c

SPECIFIC OBJECTIVE NO 1

38

To up-scale and validate at 
demonstration scale entirely new 
building blocks for the chemical 
industry 

30,000 

- Output 
Five new 
building 
blocks for 
the 
chemical 
industry  

s
k
c
o
l
b

g
n
i
d
l
i
u
B

Subtotal for specific objective N°1 

22,000 

75,000 

57,500 

52,000 

50,000 

50,000 

83,000 

22,000 

75,000 

57,500 

52,000 

50,000 

50,000 

83,000 

389,500 

389,500 

37 
38 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’ 

EN 

40 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
SPECIFIC OBJECTIVE No 2 
To develop new bio-based materials 

- Output 
Fifty new 
biobased 
materials 

s
l
a
i
r
e
t
a

M

2,500 

9,000 

Subtotal for specific objective No 2 

9,000 

35,000 

36,500 

24,000 

27,000 

29,500 

36,000 

197,000 

35,000 

36,500 

24,000 

27,000 

29,500 

36,000 

197,000 

SPECIFIC OBJECTIVE NO 3 

To present new close to the market 
consumer products 

- Output 
Thirty new 
consumer 
products 

s
t
c
u
d
o
r
P

2,500 

Subtotal for specific objective No 3 

SPECIFIC OBJECTIVE NO 4 

To set up flagship biorefineries 

- Output Five 
flagship 
biorefinery 
plants 

s
e
i
r
e
n
i
f
e
r

25,000 

Subtotal for specific objective No 4 

10,000 

21,500 

21,500 

15,500 

17,500 

19,000 

31,500 

136,500 

10,000 

21,500 

21,500 

15,500 

17,500 

19,000 

31,500 

136,500 

19,000 

70,000 

47,000 

51,000 

53,000 

51,000 

65,000 

356,000 

19,000 

70,000 

47,000 

51,000 

53,000 

51,000 

65,000 

356,000 

EN 

41 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPECIFIC OBJECTIVE NO 5 

To establish new bio-based value 
chains 

- Output Ten 
new bio-based 
value chains  

4,000 

s
n
i
a
h
c

e
u
l
a
v

d
e
s
a
b

o
i
B

Subtotal for specific objective No 5 

7,500 

16,000 

15,500 

11,000 

9,500 

9,000 

15,000 

83,500 

7,500 

16,000 

15,500 

11,000 

9,500 

9,000 

15,000 

83,500 

TOTAL COST 

67,500 

217,500 

178,000 

153,500 

157,000 

158,500 

230,500 

1.162,500 

EU contribution to operational costs amounts to EUR 980 millions. 

EN 

42 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on human resources  

3.2.3.1.  Summary of the BBI Joint Undertaking 

(cid:133) 

The proposal/initiative does not require the use of appropriations of an administrative nature  

X The proposal/initiative requires the use of appropriations of an administrative nature, as described below: 
Staffing numbers (in FTE)39 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020  

Year 
2021 

Year  
2022 

Year 
2023  

Year 
2024*  

2  

2 

12  

2 

2 

18 

2 

2 

18 

2 

2 

18 

2 

2 

18 

2 

2 

18 

2 

2 

18 

2 

2 

18 

2 

2 

18 

2 

2 

18 

2 

2 

18 

Officials (AD 
Grades) 

Officials 
(AST Grades) 

Contract 
agents 

Temporary 
agents  

Seconded 
National 
Experts 

TOTAL 

16 

22 

22 

22 

22 

22 

22 

22 

22

22 

22 

*In case of no renewal of the JTI, the staff numbers will be decreased accordingly during the phasing out period (after 2020) taking into account the financial commitments. This 
table represents the maximum scenario.  

39 

In the case of PPP bodies under Article 209 FR, this table is included for information purposes. 

EN 

43 

EN 

 
  
 
 
  
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020  

Year  
2021 

Year 
2022 

Year 
2023 

Year 2024 

EUR million (to three decimal places) 

0.216 

0.220 

0.224 

0.229 

0.233 

0.238 

0.243 

0.216 

0.220 

0.224 

0.229 

0.233 

0.238 

0.243 

0.564 

0.863 

0.880  

0.898 

0.916 

0.934 

0.953 

0.247 

0.247 

0.972 

0.252 

0.252 

0.991 

0.257 

0.263 

0.257 

0.263 

1.011 

1.031 

Officials (AD 
Grades) 

Officials 
(AST 
Grades) 

Contract 
agents 

Temporary 
agents  

Seconded 
National 
Experts 

TOTAL 

0.996 

1.303 

1.328 

1.356 

1.382 

1.410 

1.439 

1.466 

1.495

1.525 

1.557 

EN 

44 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.2.  Estimated requirements of human resources for the parent DG (DG RTD) 

- 

X 

The proposal/initiative does not require the use of human resources.  

The proposal/initiative requires the use of human resources, as described below: 

Year 
2015 
(cid:121) Establishment plan posts (officials and temporary staff) 

Year 
2014 

XX 01 01 01 (Headquarters and 
Commission’s Representation Offices) 
XX 01 01 02 (Delegations) 

Estimate to be expressed in numbers  

Year  
2016 

Year  
2017 

Year  
2018 

Year  
2019 

Year  
2020* 

08 01 05 01 (Indirect research) 

3 

3 

3 

3 

3 

3 

3 

10 01 05 01 (Direct research) 

(cid:121) External staff (in Full Time Equivalent: FTE)40 

XX 01 02 01 (CA, SNE, INT from the 
‘global envelope’) 

XX 01 02 02 (CA, LA, SNE, INT and 
JED in the delegations) 

XX 01 04 yy41 

- at 
Headquarters42 

- in delegations  

XX 01 05 02 (CA, SNE, INT - 
Indirect research) 

10 01 05 02 (CA, SNE, INT- Direct 
research) 
Other budget lines (specify) 

TOTAL 

3 

3 

3 

3 

3 

3 

3 

* The staff number for the period after 2020 will be decided at the later stage. 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 
with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

As described in the Statutes of the BBI Joint Undertaking , Clauses 4 and 6 

External staff 

Not applicable 

40 

41 
42 

CA=  Contract  Agent;  LA  =  Local  Agent;  SNE  =  Seconded  National  Expert;  INT=  agency  staff 
(‘Intérimaire’).  
Sub-ceiling for external staff covered by operational appropriations (former "BA" lines). 
Mainly for the Structural Funds, the European Agricultural Fund for Rural Development (EAFRD) and 
the European Fisheries Fund (EFF). 

EN 

45 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Description  of  the  calculation  of  cost  for  FTE  equivalent  should  be  included  in  the  Annex, 
section 3.  
Estimated requirements of human resources for the BBI JU43 

(cid:133) 

X 

The proposal/initiative does not require the use of human resources.  

The proposal/initiative requires the use of human resources, as described below:  

a. Estimated requirements of human resources to be financed from appropriations under 2014-
2020 Multiannual Financial Framework 

Year 
2015 
(cid:121) Establishment plan posts (temporary staff) 

Year 
2014 

Estimate to be expressed in numbers 

Year  
2016 

Year  
2017 

Year  
2018 

Year  
2019 

Year  
2020* 

08 02 07 32 – 
Societal challenges – 
JTI BBI 

Officials (AD 
grades) 

Officials (AST 
grades) 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

(cid:121) External staff (in Full Time Equivalent: FTE)44 

08 02 07 32 – 
Societal challenges – 
JTI BBI  

TA 

CA 

SNE 

INT 

12 

18 

18 

18 

18 

18 

18 

TOTAL 

16 

22 

22 

22 

22 

22 

22 

* for 2021-2024, please refer to table 3.2.3.1 

Description of tasks to be carried out: 

Officials and temporary staff 

As described in the Statutes of the BBI Joint Undertaking , Clauses 4 and 6 

External staff 

As described in the Statutes of the BBI Joint Undertaking , Clauses 4 and 6 

43 
44 

In the case of PPP bodies under Article 209 FR, this section is included for information purposes. 
CA  =  Contract  Agent;  LA  =  Local  Agent;  SNE  =  Seconded  National  Expert;  INT  =  agency  staff 
(‘Intérimaire’).  

EN 

46 

   EN 

 
 
 
 
 
 
 
 
 
 
 
  
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Description  of  the  calculation  of  cost  for  FTE  equivalent  should  be  included  in  the  Annex, 
section 3.  

3.2.4.  Compatibility with the current multiannual financial framework  

Proposal/initiative  is  compatible  the  current  multiannual  financial  framework  (MFF 

X 
2014-2020). 

Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

(cid:133) 
multiannual financial framework. 

Explain  what  reprogramming  is  required,  specifying  the  budget  lines  concerned  and  the 
corresponding amounts. 

Proposal/initiative requires application of the flexibility instrument or revision of the 

(cid:133) 
multiannual financial framework45. 

Explain  what  is  required,  specifying  the  headings  and  budget  lines  concerned  and  the 
corresponding amounts. 

3.2.5.  Third-party contributions  

(cid:133) The proposal/initiative does not provide for co-financing by third parties.  

X The proposal/initiative provides for the co-financing estimated below: 

Appropriations in EUR million (to three decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018  

Year 
2019 

Year 
2020 -
2024 

Total 

– 

the 

Specify 
co-financing 
body 
contribution 
in  cash  to  the 
administrative 
costs 

– 

the 

Specify 
co-financing 
body 
contribution 
in  cash  to  the 
operational 
costs* 

1,955 

2,096 

2,243 

2,453 

2,621 

2,527 

6,105 

20,000 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

77,500 

182,500 

TOTAL 
appropriations 
cofinanced  

19,455 

19,596 

19,743 

19,953 

20,121 

20,027 

83,605 

202,500 

The contributions in cash will include a minimum of EUR 182.5 million from Industry for the 
operational costs. 

The total contribution from members other than the Union are laid down by Article 4 of the 
Council Regulation of the BBI Joint Undertaking  

3.3. 

Estimated impact on revenue  

X 

45 

EN 

Proposal/initiative has no financial impact on revenue.  

See points 19 and 24 of the Interinstitutional Agreement. 

47 

   EN