Proposal for a COUNCIL REGULATION amending the COUNCIL REGULATION (EU) No 560/2014 of 6 May 2014 establishing the Bio-based Industries Joint Undertaking
Date: 2017-02-22
Institutions: Directorate-General for Research and Innovation, European Commission
Subjects: EU programme, bio-industry, biofuel, economic growth, innovation, joint venture, legal status, public-private partnership, renewable resources, research and development

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   EUROPEAN COMMISSION  Brussels, 22.2.2017  COM(2017) 68 final 2017/0024 (NLE)   Proposal for a COUNCIL REGULATION amending the COUNCIL REGULATION (EU) No 560/2014 of 6 May 2014 establishing the Bio-based Industries Joint Undertaking  (Text with EEA relevance)  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  Bio-Based  Industries  Joint  Undertaking  (‘BBI  JU’)  is  a  body  entrusted  with  the 
implementation  of  a  public-private  partnership1  whose  members  are,  on  the  one  hand,  the 
Union  represented  by  the  Commission  and,  on  the  other  hand,  the  Bio-based  Industries 
Consortium (‘BIC’)2 BBI JU has been established by Council Regulation (EU) No 560/2014 
(‘the Council Regulation’), for the implementation of the Joint Technology Initiative on Bio-
based Industries (‘BBI JU Initiative’), until 31 December 2024. The Statutes of  the BBI  JU 
are annexed to the Council Regulation 560/2014 (‘the Statutes’). 

According  to  Article  3  of  the  Council  Regulation,  the  contribution  of  the  Union  to  the 
administrative  and  operational  costs  of  the  BBI  JU  should  be  up  to  EUR 975  million.  This 
contribution would be divided as follows:  
-not more than EUR 29.25 million, consisting of financial3 contributions to the administrative 
costs of the BBI JU4 and 

-at least EUR 945.75 million, consisting of financial contributions to the operational costs of 
the BBI JU4 (hereinafter referred to as ‘the EU contribution’). 

According to Article 4 of the Council Regulation, the contribution of BIC or of its constituent 
entities to the administrative and operational costs of the BBI JU Initiative should be at least 
EUR 2 730 million. This contribution would be divided as follows:  

-not more than EUR 29.25 million, consisting of financial contributions to the administrative 
costs of the BBI JU5;  

-at least EUR 182.5 million consisting of financial contributions to the operational costs of the 
BBI JU6;  
-an unspecified amount7 consisting of in kind8 contributions in implementing indirect actions9 
(also  referred  to  as  in  kind  contributions  to  operational  costs,  hereinafter  referred  to  as 
‘IKOP’); and 

-at  least  EUR 1 755  million  consisting  of  in  kind  contributions  in  implementing  additional 
activities (hereinafter referred to as ‘IKAA’)10. 

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Article 1 of the Council Regulation 560/2014. 
Article 2 of the Statutes annexed to the Council Regulation 560/2014. 
The term ‘financial’ refers to a contribution paid cash.  
Article 3(1) of the Council Regulation 560/2014 corroborated with Article 12.2 of the Statutes annexed 
to the Council Regulation 560/2014. 
Article  4(2)(a)  of  the  Council  Regulation  560/2014  corroborated  with  Article  12(2)  of  the  Statutes 
annexed to the Council Regulation 560/2014. 
Article 4(2)(a) of the Council Regulation 560/2014 corroborated with Articles 12(3)(b) and 12(4) of the 
Statutes annexed to the Council Regulation 560/2014. 
Although the amount is not explicitly specified, its minimum required threshold will be identified at the 
end  of  the  BBI  JU  by  deducting  from  the  minimum  threshold  of  EUR 2 730  million,  all  other 
contributions delivered.  
The term ‘in-kind’ refers to a contribution which is paid in goods and/or services rather than cash.  
Article  4(2)(a)  of  the  Council  Regulation  560/2014  corroborated  with  Article  12(3)(c)  of  the  Statutes 
annexed to the Council Regulation 560/2014. 
In-kind  contributions  in  additional  activities  are  defined  by  Article  4(2)(b)  of  the  Council  Regulation 
560/2014. 

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The  current  proposal  for  amendment  regards  the  legal  specificities  of  the  financial 
contribution referred to in Articles 12(3)(b) and 12(4) of the Statutes annexed to the Council 
Regulation 560/2014. 

In  accordance  with  Article  12(3)(b)  and  Article  12(4)  of  the  Statutes,  the  financial 
contribution  to  the  operational  costs  of  at  least  EUR 182.5  million  should  be  delivered  by 
BIC11 by 31 December 202412. Furthermore, it stems from Article 12(3)(b) and Article 12(5) 
of the Statutes, read together, that this financial contribution from BIC should be entered to 
BBI  JU’s  budget  (at  programme  level).  Indeed,  in  accordance  with  Article  12(5)  of  the 
Statutes, members' financial contributions to the operational costs constitute resources of the 
BBI JU to be entered to its budget. And, in accordance with Article 12(3)(b) of the Statutes, a 
part of the operational costs of the BBI JU is to be covered by the financial contribution by 
the members other than the Union. The latter provision does not refer to constituent entities of 
the members other than the Union, which are the ones who participate in implementation of 
indirect actions funded by the BBI JU and who could provide financial contributions directly 
to such indirect actions (at project level). 

Subsection  3.2.5  of  the  Legislative  Financial  Statement  accompanying  the  Proposal  for  a 
Council Regulation on the BBI Joint Undertaking of 10 July 201313 entails that the legislator 
expects EUR 17.5 million as financial contributions from Industry to operational costs to be 
entered annually into the budget of the BBI Joint Undertaking. 

BIC has acknowledged its obligation to deliver a financial contribution of at least EUR 182.5 
million  by  31  December  2024,  but  it  has  found  difficulties  with  the  delivery  mode14.  For 
many  of  the  BIC  members,  making  a  financial  contribution  at  programme  level  is 
commercially  unviable,  because  it  does  not  offer  any  guaranteed  benefit  in  exchange  (e.g. 
results of the projects and related intellectual property rights) and it could benefit competitors 
participating in projects funded by the BBI JU15. Thus, BIC has proposed an alternative mode 
for delivering the financial contribution: the possibility for its members to deliver the financial 
contribution directly, at project level16. This  delivery mode  would  encourage BIC  members’ 
financial participation, because they could have access to  the results of the projects that  are 
reserved to project participants only. 

The  European  Commission  assessed  the  proposal  made  by  BIC,  checking  whether  (and  to 
which extent) the interest of the Union is affected by the alleged difficulty for BIC to fulfil its 
obligation to contribute financially to BBI JU. At first, the European Commission could have 
simply dismissed the arguments of BIC, justifying that it is not under the competences of the 
Commission to pursue the interest of the private member of the JU, that compliance with the 
existent legal framework is compulsory and that in the absence of it, the sanctions provided 
for in the Council Regulation17 would be applied. However, this would have had a negative 
impact on the objective of the BBI JU, which is to carry out activities through collaboration of 
stakeholders  along  the  entire  bio-based  value  chains,  including  SMEs,  research  and 

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BIC is the sole ‘member other than the Union’. 
The period provided for in Article 1 is ‘until 31 December 2024’. 
Proposal for a Council Regulation on the Bio-Based Industries Joint Undertaking (COM(2013) 496) 
During the financial years 2014, 2015 and 2016 an amount of EUR 0.75 million has been delivered  by 
BIC at programme level.   
Competitors of a BIC member cannot be restricted from participating in a project financed by the BBI 
JU because it would be in contradiction with the opened and transparent nature of the BBI JU calls for 
proposals. 
Letter of 31 March 2015 addressed by the Board of BIC to DG RTD F.2. 
See Article 4(5) of the Council Regulation 560/2014. 

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technology  centres  and  universities18.  Consequently,  the  Commission  services  decided  to 
adopt a pro-active attitude and proceeded to an in-depth assessment of this issue, identifying 
the best available follow-up action that it could take. This consisted of an analysis of potential 
legislative  and  non-legislative  measures,  which  pointed  to  the  conclusion  that  a  formal 
modification of the legal framework was needed.  

In order to ensure that this modification occurs without any impact on the initial objectives of 
the  Council  Regulation,  the  services  of  the  European  Commission  identified  the  objectives 
which lay behind the obligation to deliver a financial contribution: (1) to secure delivery of a 
minimum  private  financial  contribution  to  the  operational  costs  of  the  BBI  JU  Initiative  by 
means of a commitment taken by its private member; (2) to secure a minimum leverage effect 
of contributions made by the Union; and, very importantly, (3) to support the take-off of the 
bio-economy sector by making funding available for Research and Innovation Actions (‘RIA’) 
in this area. With regard to the first objective, the commitment to participate financially was 
made particularly by members of BIC belonging to the forestry industry, which due to their 
business  model19  cannot  generate  any  IKOP  and  can  only  participate  financially  in  the  BBI 
JU.  With  regard  to  the  third  objective,  EUR 150  million  (out  of  the  EUR 182.5  million 
expected  financial  contribution  from  BIC)  were  earmarked  to  be  invested  in  RIAs20  (where 
the main beneficiaries are academia and SMEs).   

Taking  into  account  the rationale  behind  the  obligation  to  deliver  the  financial  contribution, 
the services of the European Commission have been working to identify the possible modes in 
which  this  financial  contribution  could  be  delivered. A  comparative  analysis  of  the  Council 
Regulation with the legal frameworks established for other Joint Undertakings21 proved to be 
constructive in this regard. The financial contribution by the Members other than the Union 
was identified only in the regulation establishing the Innovative Medicines Initiative 2 Joint 
Undertaking (‘IMI2’)22. Unlike the BBI JU regulation, IMI2 JU Regulation does not include 
an obligation to contribute financially. It is only a possibility for the Members other than the 
Union.  This  financial  contribution  at  IMI2  JU  may  be  delivered  both  at  programme  and 
project  level.    Furthermore,  it  is  worth  noting  that  in  practice  delivery  at  IMI2  programme 
level is  done by trusts and charities which, by their very  nature, operate like public funders 
(e.g. the Bill & Melinda Gates Foundation, Welcome Trust) while the EFPIA constituent and 
affiliated entities (the equivalent of BIC members in IMI2) deliver financial contributions at 
project  level.  Consequently,  the  conclusions  of  this  comparative  analysis  are  that:  (1)  the 
requirement to deliver a financial contribution exclusively at programme level is unique to the 
BBI JU; (2) BBI JU’s current model is adequate for enhancing collaboration with trusts and 
charities;  and,  most  relevantly,  (3)  BBI  JU’s  framework  should  be  adjusted  as  it  is  to 
collaborate with commercial companies as well. 

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See recital 14 of the Council Regulation 560/2014. 
In  general,  members  of  the  forestry  industry  do  not  have  any  in-house  research  capacity  and  they 
usually rely on outsourcing their research activities to academia and SMEs. 
See page 46 of the Strategic Innovation and Research Agenda of March 2013 (SIRA), where the total 
amount prioritised for R&D (i.e. RIA) is EUR 600 million (out of which EUR 150 million represent the 
financial  contribution  of  BIC  members,  EUR 150  million  represent  their  in  kind  contribution,  and 
EUR 300 million represent the EU contribution).  
Council Regulation (EU) No 559/2014 of 6 May 2014 establishing the Fuel Cells and Hydrogen 2 Joint 
Undertaking; Council Regulation (EU) No 558/2014 of 6 May 2014 establishing the Clean Sky 2 Joint 
Undertaking;  Council  Regulation  (EU)  No  561/2014  of  6  May  2014  establishing  the  ECSEL  Joint 
Undertaking; Council Regulation (EU) No 642/2014 of 16 June 2014 establishing the Shift2Rail Joint 
Undertaking. 
Established by the Council Regulation (EU) No 557/2014 of 6 May 2014. 

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Being  the  entity  responsible  for  promoting  the  general  interest  of  the  Union  and  for  taking 
appropriate initiatives to that end23 and taking note of BIC’s difficulty to deliver its financial 
contribution  in  the  mode  foreseen  by  the  Council  Regulation,  the  European  Commission 
proposes to adjust the initial text of the Council Regulation by introducing the possibility of 
delivering financial contributions at project level, in addition to the existent mode of delivery 
at  programme  level.  This  solution  addresses  the  situation  effectively  and  works  towards 
achieving  the  initial  objectives  of  the  Council  Regulation  by  allowing  BIC  members  to 
comply with their initial commitment. This solution is similar to the one of IMI 2 JU, where 
members  other  than  the  Union  can  make  financial  contributions  either  at  programme  level, 
which is commonly done by trusts and charities, or at project level, which is the mode used by 
commercial entities. 

The proposed amendment is not part of the REFIT programme. 

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Consistency with existing policy provisions in the policy area 

This  proposal  seeks  to  improve  the  provisions  of  the  Council  Regulation  and  to  streamline 
them  furthermore  towards  its  objectives.  Therefore  this  proposal  for  amendment  is  totally 
consistent with the original objectives of the BBI JU and with existing policy provisions.  

• 

Consistency with other Union policies 

The  BBI  JU  develops  ‘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’24. 
The importance of (setting up) a Bio-based Industries PPP in the form of a Joint Technology 
Initiative  was  highlighted  in  several  Commission  Communications,  such  as  ‘Innovating  for 
Sustainable  Growth:  A  Bioeconomy 
Industrial 
Renaissance’26, ‘Public-private partnerships in  Horizon  2020:  a powerful tool to  deliver  on 
innovation  and  growth  in  Europe’27,  and  European  Innovation  Partnership  ‘Agricultural 
Productivity and Sustainability’28. 

‘For  a  European 

for  Europe’25, 

2. 

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LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis of this proposal for amendment lies in Articles 187 and 188 of the Treaty on 
the Functioning of the European Union (‘TFEU’).   

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Subsidiarity (for non-exclusive competence)  

The  initiative  does  not  fall  under  any  of  the  exclusive  competences  explicitly  transferred  to 
the EU. However, only the EU is able to modify the legal framework of a Joint Undertaking 

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See Article 17 of the Treaty on European Union. 
See Recital no. 17 of Council Regulation 560/214. 
Communication  from  the  Commission  to  the  European  Parliament  and  the  Council  COM(2012)  60 
final. 
Communication  from  the  Commission  to  the  European  Parliament  and  the  Council  COM(2014)  14 
final. 
Communication  from  the  Commission  to  the  European  Parliament  and  the  Council  COM(2013)  494 
final. 
Communication  from  the  Commission  to  the  European  Parliament  and  the  Council  COM(2012)  79 
final. 

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set up in accordance with Articles 187 and 188 TFEU. Member States are unable to act alone 
on changing the legal framework of an EU body.  

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Proportionality 

The  objective  envisaged  by  this  proposal  for  amendment  is  to  adjust  the  provisions  of  the 
Council Regulation so as to provide BIC members with the practical possibility to fulfil their 
obligation to deliver the financial contribution. This proposal does not produce any additional 
impact other than the one initially intended by the Council Regulation. Therefore, the action 
proposed  does  not  go  beyond  what  is  necessary  to  achieve  its  objective  satisfactorily,  both 
with regard to its content and its form, thus complying with the principle of proportionality. 

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Choice of the instrument 

An  analysis  of  regulatory  and  non-regulatory  measures  was  carried  out,  and  pointed  to  the 
need  for  a  formal  modification  of  the  Council  Regulation.  Thus,  in  the  absence  of  any 
possibility of interpretation of the Council Regulation that would make possible the delivery 
of  the  financial  contribution  at  project  level,  the  only  available  option  that  remains  is  to 
amend the Council Regulation itself.  

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RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The Council Regulation came into force in June 2014 and an interim evaluation of the BBI JU 
is due by 30 June 2017. Therefore, no ex-post evaluations or fitness checks have been carried 
out yet with regard to the Council Regulation. 

• 

Stakeholder consultations 

The European Commission has constant operational exchanges with BIC, its members and the 
BBI JU Programme Office in the framework of the implementation of the BBI JU. The mode 
of delivery of the financial contribution by BIC members has been subject of multiple rounds 
of consultations and discussions.  

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Collection and use of expertise 

The European Commission did not rely on any external expertise when dealing with the issue 
of the financial contribution of BIC members.  

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Impact assessment 

The objective envisaged by this proposal for amendment is to adjust the Council Regulation 
so that it can fully achieve the impact initially expected from it. Consequently, this proposal 
for  amendment  has  no  additional  impact  other  than  the  one  expected  to  be  achieved  by  the 
original Council Regulation itself.  
Furthermore,  according  to  the  Better  Regulation  Toolbox29,  an  Impact  Assessment  is  not 
required when there is little or no choice available for the Commission. As explained above, 
the  options  of  the  European  Commission  in  this  particular  case  are  limited,  as  it  is  only 
‘technically’ amending a previous policy decision already subject to an Impact Assessment by 
specifying technical details with limited discretion available. Therefore, no impact assessment 
is required for this initiative. 

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See p. 33 of the Better Regulation ‘Toolbox’. 

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• 

Regulatory fitness and simplification 

The proposed amendment is not part of the REFIT programme. 

In  order  to  evaluate  its  impact  on  regulatory  and  administrative  burden,  it  is  necessary  to 
describe, on the one hand the framework created by the original Council Regulation, and on 
the other hand the one envisaged by this proposal.  

In  order  to  comply  with  the  requirements  established  by  the  Council  Regulation,  BIC 
members  need  to  deliver  individual  financial  contributions  to  BIC,  in  accordance  with  the 
rules agreed upon by the consortium. BIC collects the individual financial contributions of its 
members, enters  them into  its  accounts  and delivers the  financial  contributions30 to  the BBI 
JU.  The  BBI  JU  enters  them  into  its  accounts  as  operational  budget31,  together  with  the 
contribution  it  receives  from  the  Union  (constituting  the  BBI  JU  contribution  to  indirect 
actions).  

As  part  of  its  daily  operational  activities,  the  BBI  JU  makes  an  assessment  of  the  costs 
incurred  and  reported  by  beneficiaries  in  BBU  JU  funded  projects.  After  approving  the 
eligible costs (in accordance with the applicable legal framework, in particular the Rules for 
Participation in Horizon 202032 and the grant agreements concluded between the BBI JU and 
the project beneficiaries), the BBI JU distributes the BBI JU contribution to the projects. The 
beneficiaries  enter  the  received  BBI  JU  contribution  in  their  accounts,  in  accordance  with 
their national legislation and their usual accounting practices.  

In  line  with  this  proposal,  BIC  members  will  have  the  possibility  to  continue  delivering 
financial  contributions  at  programme  level,  as  described  above.  In  addition  to  this,  BIC 
members participating  in a BBI  JU project will have  the possibility to transfer  the financial 
contribution directly to another participant in the same project, as presented in the description 
of action, in accordance with the rules mutually agreed upon by both parties (the consortium 
agreement) and in compliance with the applicable legal framework. The participants enter the 
financial  contributions  into  their  accounts  in  accordance  with  their  national  legislation  and 
their usual accounting practices.  

A comparative summary of the two frameworks is presented in the table below: 

Current framework 

Proposed alternative 

financial transfer from BIC members to BIC 

financial transfers from BIC members to 
project beneficiaries 

accounting by BIC 
financial transfer from BIC to BBI JU 
accounting by BBI JU 
(following assessment of eligible costs)  
financial transfers from BBI JU to project 
beneficiaries 

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In  accordance  with  Article  12(3)(b)  corroborated  with  Article  12(4)  of  the  Statutes  annexed  to  the 
Council Regulation. 
In  accordance  with  Article  12(5)(b)  corroborated  with  Article  12(3)(a)  and  12(3)(b)  of  the  Statutes 
annexed to the Council Regulation. 
Regulation (EU) No 1290/2013 of the European Parliament and of the Council of 11 December 2013, 
laying  down  the  rules  for  participation  and  dissemination  in  "Horizon  2020  -  the  Framework 
Programme for Research and Innovation (2014-2020) 

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accounting by beneficiaries in accordance 
with their national legislation and their usual 
accounting practices. 

accounting by beneficiaries in accordance 
with their national legislation and their usual 
accounting practices. 

This  proposal  reduces  administrative  burden  for  BIC  and  for  the  BBI  JU  as  far  as  their 
intermediary role between BIC members who are obliged to make financial contributions, and 
project  participants  is  concerned.  However,  BIC  will  remain  ultimately  responsible  for 
reporting  of  the  aggregate  number  of  financial  contributions  by  its  members,  as  set  out  in 
Article 4(3) of the BBI JU Regulation. 

Appropriate  changes  will  be  introduced  in  the  BBI  JU  Model  grant  agreement  based  on 
similar solution applied in the IMI 2 JU Model grant agreement. 

The envisaged system has already been pioneered by the IMI JU33 and is also currently used 
in the context of IMI 2 JU.  

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Fundamental rights 

This proposal for amendment has no consequences for the protection of fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

This proposal for amendment has no budgetary implications.  

As explained above, the current legal framework makes it very difficult for BIC members to 
comply  with  it,  and  therefore  not  proposing  an  amendment  would  have  budgetary 
implications. More concretely, the non-compliance by members other than the Union with the 
legal  framework  would  trigger  financial  sanctions  as  provided  under  Article  4(5)  of  the 
Council Regulation, which refers, among others, to reducing the financial contribution of the 
Union to the BBI JU Initiative. A budget cut would affect mainly academia and the relevant 
SMEs,  as  this  financial  contribution  was  reserved  particularly  for  RIAs  (in  which  academia 
and SMEs are the main beneficiaries receiving funding34). 

5. 

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OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

A  specific  implementation  plan  for  this  amendment  is  not  needed  as  the  amended  Council 
Regulation  would  be  implemented  –  just  as  the  original  one  –  through  projects  selected  by 
BBI JU after carrying out open, competitive calls for proposals. An implementation plan had 
not been established at the initial adoption of the Council Regulation either. 

• 

Explanatory documents (for directives) 

This proposal for amendment concerns a Council Regulation that is binding in all its elements 
and is  directly applicable  in  each Member State. Consequently, no explanatory  document is 
required. 

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IMI  JU  was  initially  established  by  the  Council  Regulation  (EC)  No  73/2008  of  20  December  2007 
setting up the Joint Undertaking for the implementation of the Joint Technology Initiative on Innovative 
Medicines. 
Commission  Delegated  Regulation  (EU)  No  623/2014  of  14  February  2014  establishing  a  derogation 
from Regulation (EU) No 1290/2013 of the European Parliament and of the Council laying down the 
rules  for  participation  and  dissemination  in  ‘Horizon  2020’  with  regard  to  the  Bio-Based  Industries 
Joint Undertaking. 

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• 

Detailed explanation of the specific provisions of the proposal 

This proposal for amendment contains one substantial article that will produce the following 
effects: 

-Introduce a new mode of delivering the financial contribution referred to in Article 12(3)(b) 
of  the  Statutes  annexed  to  the  Council  Regulation,  in  addition  to  the  existing  mode  of 
delivery.  

-Delivering financial contributions will be possible in two modes: by transferring them from 
BIC  to  the  BBI  JU  (as  before)  and/or  by  transferring  them  directly  from  a  BIC  member  to 
another project beneficiary. 

-Extend the parties that can deliver the financial contribution referred to in Article 12(3)(b) of 
the  Statutes  annexed  to  the  Council  Regulation.  In  addition  to  the  ‘Member  other  than  the 
Union’  (i.e.  BIC  standing  alone),  its  ‘constituent  entities’  (i.e.  BIC  members)  will  also  be 
allowed to deliver the financial contribution. 

-Maintain the commitment to the overall financial target set out in Art 12(4) of the Statutes 
annexed to the Council Regulation.  

-Allow BIC members to report through BIC the financial contributions delivered by them at 
project level to the BBI JU. 

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2017/0024 (NLE) 

Proposal for a 

COUNCIL REGULATION 

amending the COUNCIL REGULATION (EU) No 560/2014 of 6 May 2014 establishing 
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 Parliament35,  
Having regard to the opinion of the European Economic and Social Committee36 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Council  Regulation  (EU)  560/2014  (37)  established  the  Bio-based  Industries  Joint 
Undertaking (‘BBI Joint Undertaking’).  

Article  12(4)  of  the  Statutes  of  the  BBI  Joint  Undertaking,  set  out  in  the  Annex  to 
Regulation (EU) No 560/2014 ('the Statutes'), states that the financial contribution by 
the members of the BBI Joint Undertaking other than the Union to operational costs is 
to be at least EUR 182 500 000 over the period set out in Article 1 of Regulation (EU) 
No 560/2014, that is to say from the establishment of the BBI Joint Undertaking until 
31 December 2024.  

The  Bio-based  Industries  Consortium  Aisbl  (‘BIC’),  which  is  a  member  of  the  BBI 
Joint  Undertaking  other  than  the  Union,  continues  to  be  ready  to  support  the 
operational costs of the BBI Joint Undertaking for the amount set out in Article 12(4) 
of  the  Statutes.  It  has  however  proposed  an  alternative  mode  of  financing  through 
financial contributions made by its constituent entities at the indirect actions' level. 

The  objective  of  the  BBI  Initiative  to  carry  out  activities  through  collaboration  of 
stakeholders  along  the  entire  bio-based  value  chains,  including  SMEs,  research  and 
technology  centres  and  universities  can  be  achieved  only  by  enabling  BIC  and  its 
constituent  entities  to  deliver  the  financial  contribution  not  only  as  payments  to  the 
BBI Joint Undertaking but also as financial contributions to indirect actions funded by 
the BBI Joint Undertaking. 

(5) 

It  is  therefore  necessary  to  amend  the  Statutes  in  order  to  enable  BIC  and  its 
constituent entities to deliver the financial contribution for the full amount set out in 

35 
36 
37 

OJ C , , p. . 
OJ C , , p. . 
Council  Regulation  (EU)  No  560/2014  of  6  May  2014  establishing  the  Bio-based  Industries  Joint 
Undertaking (OJ L 169, 7.6.2014, p. 130). 

EN 

10 

   EN 

                                                 
Article  12(4)  of  the  Statutes,  allowing  those  contributions  to  be  made  not  only  as 
payments to the BBI Joint Undertaking but also as financial contributions to indirect 
actions  funded  by  the  BBI  Joint  Undertaking  and  to  be  reported  to  the  BBI  Joint 
Undertaking, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Article  12  of  the  Statutes  of  the  Bio-based  Industries  Joint  Undertaking,  as  set  out  in  the 
Annex to Council Regulation (EU) No 560/2014, is amended as follows: 

paragraph 3, point (b) is replaced by the following:  

‘(b)  financial  contributions  by  the  members  other  than  the  Union  or  their  constituent 
entities;’  

paragraph 4 is replaced by the following:  

‘4. The financial contributions by the members other than the Union or their constituent 
entities  to  the  operational  costs  referred  to  in  paragraph  3(b)  shall  be  at  least 
EUR 182 500 000 over the period provided for in Article 1 of this Regulation. 

These financial contributions shall be made as payments to the BBI Joint Undertaking or 
as financial contributions to indirect actions funded by the BBI Joint Undertaking.’ 

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

Article 2 

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

Done at Brussels, 

For the Council 
The President 

EN 

11 

   EN