Source: EURLEX
Language: en
Format: md

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| INCEPTION IMPACT ASSESSMENT | |
| Inception Impact Assessments aim to inform citizens and stakeholders about the Commission's plans in order to allow them to provide feedback on the intended initiative and to participate effectively in future consultation activities. Citizens and stakeholders are in particular invited to provide views on the Commission's understanding of the problem and possible solutions and to make available any relevant information that they may have, including on possible impacts of the different options. | |
| Title of the initiative | European Partnership on ‘Circular bio-based Europe: sustainable innovation for new local value from waste and biomass’ (Sustainable, inclusive and circular bio-based solutions) |
| Lead DG (responsible unit) | DG Research and Innovation (RTD.C1) |
| Likely Type of initiative | Proposal for a Council Regulation for a European Partnership on Circular bio-based Europe under Horizon Europe |
| Indicative Planning | Q1 2020 |
| Additional Information | – |
| The Inception Impact Assessment is provided for information purposes only. It does not prejudge the final decision of the Commission on whether this initiative will be pursued or on its final content. All elements of the initiative described by the Inception impact assessment, including its timing, are subject to change. | |
| A. Context, Problem definition and Subsidiarity Check | |
| Context | |
| The proposal for Horizon Europe, the future EU’s future research and innovation (R&I) programme for 2021-2027, outlines the approach (Article 8) and criteria (Annex III) for R&I partnerships under the umbrella term 'European Partnerships'. According to the political agreement between the Council and European Parliament, “European Partnerships shall be established for addressing European or global challenges only in cases where they will more effectively achieve objectives of Horizon Europe than the Union alone and when compared to other forms of support of the Framework programme”. The overall financial framework for the upcoming partnerships still has to be agreed by the co-legislators. Different forms of partnerships can be implemented depending on needs and criteria. One such form is institutionalised partnerships set up under Article 185 or Article 187 of the Treaty on the Functioning of the European Union (TFEU). The draft legislation outlines possible areas in which institutionalised partnerships could be set up, including sustainable, inclusive and circular bio-based solutions. In the course of the strategic planning, the Commission, in close cooperation with the Member States, has identified ‘Circular bio-based Europe’ as a candidate for such a partnership.  Coordinated research funding under a proposed partnership in ‘Circular bio-based Europe’ is needed in a world of limited resources, where global challenges such as climate change, land and ecosystem degradation, and population growth are forcing us to seek new ways to produce and consume that respect the ecological boundaries of our planet.  This partnership is intended to build on the achievements of the ‘Bio-based Industries Joint Technology Initiative’ (BBI Initiative) established under Horizon 2020, with the last calls due to be launched in 2020. The interim evaluation of the BBI initiative underlined the positive impact of its structuring and mobilising effect on the competitiveness of bio-based technologies. The interim evaluation also made recommendations, including on the need for the initiative to broaden the scope of its activities and strengthen synergies with other initiatives while enlarging the range of actively involved stakeholders. | |
| Problem the initiative aims to tackle | |
| The bio-based sector can contribute strongly to the EU’s agenda for greener and more inclusive growth and jobs, particularly in coastal and rural areas, through greater participation of primary producers in local bio-economies and through the high and fast-growing number of start-ups in the biotechnology sector. There is potential to create one million new jobs in the bio-based sector by 2030. The bio-based sector can also help build a climate-neutral future, in line with the climate objectives set in the Paris Agreement, by offering opportunities for ‘negative emissions’ (carbon sinks).  Major challenges remain; however, that curb the sector’s potential. These include technological and innovation challenges related to the development of reliable and competitive supply chains for sustainable biomass and processes for turning biomass into industrial products. They also include the following systemic, social and business model challenges:   §the multi-sectoral nature of the bio-based sector, with fragmented value chains and untried or non-existent industrial ecosystems;  §the wide range of applicable policies (agriculture, waste, industry, fertilisers, chemicals, etc.) at EU, national and regional level, leading to a complex and sometimes fragmented policy environment;  §the high risk and large capital expenditure required to demonstrate and deploy large biorefineries;  §the uncertainty around feedstock availability and costs.  Given these challenges, it is important to provide funding for research and innovation in the bio-based sector to a sufficient level to foster the development of innovative and replicable bio-based products and solutions.  Under Horizon 2020, the main initiatives in this area have been the BBI Initiative and the Circular Bioeconomy Thematic Investment Platform. The challenge here is to fully reflect the truly multi-sectoral nature of this segment of the bioeconomy by expanding the partnership beyond industry partners. Embracing a broader range of stakeholders will produce the necessary spillover effect for the whole bio-based sector, and boost the coherence and robustness of its value chains. | |
| Basis for EU intervention (legal basis and subsidiarity check) | |
| The legal basis for EU intervention is the Horizon Europe programme (based on Article 182 TFEU). In implementing the programme, the EU may make provisions for participation in research and development undertaken by several Member States or in programmes run jointly by several Member States (in accordance with Article 185 TFEU), or may set up joint undertakings (in accordance with Article 187 TFEU).  The nature and magnitude of the issues are such that action at EU level is needed, rather than the Member States acting alone.  Action at EU level will enable the entire bio-based sector to collectively build on the foundations of available assets, strengths and skills at national and regional level.  §Biomass and waste are scattered and seasonal. They are also a limited resource for both bio-based products and nutrients, and have a number of competing uses. An EU-level approach, rather than a local or national one, will foster systemic understanding of resource variability and flows, and will reduce uncertainty around feedstock availability and costs.   §The demonstration and deployment of large biorefineries is a high-risk and capital-intensive exercise that will benefit from cross-border and cross-sector collaboration and investment at EU level.  §The biobased sector is covered by a wide range of policies [1](#footnote2)  already handled at EU level. Action at EU level in the bio-based sector will help to streamline and reduce fragmentation in the policy framework. | |
| B. Objectives and Mapping of Policy options | |
| The objective of the proposed European Partnership is to step up research and innovation with a view to replacing, where possible, non-renewable fossil and mineral resources for the production of renewable products and nutrients with biomass and waste. The purpose of doing so is to promote sustainable and climate-neutral solutions that will accelerate the transition to a healthy planet in respect of the planetary boundaries. The valorisation of by-products should offer significant opportunities recycle nutrients, provide durable carbon sink opportunities, and increase the circularity of agri-food systems. It should support the renewal of the EU’s industrial base through biorefinery demonstration and help keep sustainable innovation within the EU. The development of bio-based value chains should unlock substantial opportunities for regional and rural economic development and cohesion. For instance, primary producers could use suitable small-scale business models, either individually or through cooperative approaches. Incentives for land-based carbon sinks should be created by valorising biomaterials and related agroforest ecosystems. The partnership should create awareness, capacity and structures, mobilising industry partners, producers of biological resources and end users.  By creating a long-term scientific and technological basis in the EU through support to all stages of the innovation cycle, the partnership can result in reduced greenhouse gas emissions, increased security of supply of raw materials by using local resources, and additional jobs and business opportunities created in rural areas.  The relevance of the priority and continuation of support under the Framework programme, including the form of support, will be subject to evaluations and assessments in line with the criteria set out in the Regulation of Horizon Europe.  The baseline option: no partnership, calls for proposals under Horizon Europe work programmes (option 0) can promote multi-national, multi-disciplinary and cross-sectoral collaboration, but only at project level.  Compared to implementation through calls for proposals, partnerships (options 1 and 2) allow the Member States, the private sector, foundations and other stakeholders to take joint action on priorities under a common strategy.  A co-programmed European Partnership (option 1) is a form of partnership based on memoranda of understanding or contractual arrangements with partners to align their research agendas.  An institutionalised European Partnership (option 2) based on Article 187 TFEU, in the form of a Joint Undertaking, would create a long-term dedicated implementing structure representing the deepest level of integration, engagement and up-front commitment, including a financial commitment, from partners.  Other options for partnerships (Article 185 TFEU and co-funded) are not considered suitable because the initiative mostly targets industry. | |
| C. Preliminary Assessment of Expected Impacts | |
| Likely scientific and economic impacts | |
| Research and innovation investments via a European Partnership are likely to affect the pipeline of long-term, medium-term and shortterm solutions for processing biomass and waste into renewable products and nutrients. They can boost the potential of the bio-based economy to create long-term growth and jobs in Europe, and increase turnover and employment in the entire European biomass and nutrients value chain, including the agriculture, seed, forestry, pulp and paper, food, processing, industrial biotechnology, bio-based material and chemical sectors. | |
| Likely social impacts | |
| The bio-based sector will play a key role in revitalising local communities by creating a new manufacturing base linking R&D activities to local/regional production. The agriculture and forestry sectors will be able to diversify their revenue, bringing opportunities for new skilled jobs, knowledge, innovation and new business models. It will boost regional economic development and cohesion, including in remote or peripheral areas. | |
| Likely environmental impacts | |
| Bio-based and nutrient value chains, business concepts based on sustainable biomass production, good forest management practices, and the use of waste and residues will help preserve and restore biodiversity and ecosystems, reduce greenhouse gas (GHG) emissions, act as carbon sinks, and contribute to soil and water protection. Positive environmental impacts of the potential partnership will include:  §reduced GHG emissions by replacing products from fossil resources with bio-based products;  §improved resource efficiency of industrial processes and value chains;  §reduced waste, in line with the waste hierarchy and the aim to reduce landfilling of biodegradable waste;  §sustainable biomass and nutrient sourcing, taking into account environmental boundary conditions;  §incentives for land-based carbon sinks by the increased valorisation of biomaterials;  §reduction of the nutrient pollution associated with organic waste streams. | |
| Likely impacts on fundamental rights | |
| n/a | |
| Likely impacts on simplification and/or administrative burden | |
| A simpler, more strategic and coordinated approach to the setting-up and implementation of European Partnerships under Horizon Europe will significantly reduce the administrative burden for applicants and beneficiaries. Horizon Europe legal basis requires thorough assessment as to the necessity for establishing institutionalised partnerships, and whether other, more flexible partnership forms could achieve the identified objectives. In addition, it lays down requirements (e.g. related to central management of financial contributions, access to data, and links with the monitoring and evaluation framework of Horizon Europe etc.) that support further simplification, harmonisation and more effective implementation. | |
| D. Evidence Base, Data collection and Better Regulation Instruments | |
| Impact assessment | |
| An impact assessment is being prepared to inform the Commission's decision on whether to propose the establishment of an institutionalised European Partnership and to support the preparation of this initiative. If this decision is positive, the impact assessment is likely to be made available in the first quarter of 2020. | |
| Evidence base and data collection | |
| A full impact assessment is required for all partnerships, which might be institutionalised based on Articles 185 and 187 TFEU. In this context, an external study will provide coordinated input for the preparation of impact assessments, which could lead to and would accompany the proposals for institutionalised partnerships (based on Articles 185 and 187 TFEU). The study will be based on desk research, Commission and stakeholder consultation, quantitative and qualitative data collection and analysis and inputs from panels of experts. It will develop a single common methodology to ensure coordinated inputs to individual impact assessment studies of each envisaged partnership. | |
| Consultation of citizens and stakeholders | |
| In line with the Better Regulation guidelines, the Commission seeks to consult stakeholders as widely as possible. The consultation strategy aims to involve a broad range of stakeholders, including national authorities, the research community across the EU, industry, EU institutions and bodies, and others.  A structured consultation of Member States in the Shadow Strategic Configuration of the Programme Committee Horizon Europe in May-June 2019 provided early input into the preparatory work.  A single open public consultation from mid-2019 (in English, French and German) will cover all 12 potential institutionalised partnerships based on Articles 185 and 187 TFEU. It will collect input from a broad range of stakeholders, on both the overall approach and the individual candidates for institutionalised partnerships based on Article 185 or Article 187 TFEU. It can be accessed via the Commission's Have Your Say web portal. As the results are expected to inform debate during the ‘R&I days’ (Brussels, 24-26 September), it might be necessary to shorten slightly the 12 week consultation period.  Once all consultation activities are closed, the Commission will publish a synopsis report (summarising the results) on the consultation page. | |

:   [(1)](#footnoteref2)
      
       For example, the bioeconomy strategy, the circular economy strategy, the common agricultural policy, the rural development policy, the climate change policy including the Paris agreement, the renewed industrial policy strategy and the UN sustainable development goals.

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