Antonio Di Giulio Head of Unit E1 Directorate-General Research & Innovation European Commission

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1 Antonio Di Giulio Head of Unit E1 Directorate-General Research & Innovation European Commission Building bioeconomy in Europe

2 Building Bioeconomy in Europe Issues at Stake The Bioeconomy Strategy Impact 2

3 Bioeconomy: What is at stake? Increasing the resilience, sustainability and productivity of food chain Human consumption food lost/wasted in the world: approximately 1.3 billion tonnes/year, 1/3 of total food production (FAO-commissioned study). Water consumption: agriculture accounts for 70% of all water consumption, 20% for industry, 10% for domestic use. In industrialized Countries, industries consume more than 1/2 of the water available for human use (Source: UN) Source: Data provided by University of Minnesota, Global Landscapes Initiative, as presented in Research Program on Climate Change, Agriculture and Food Security s November 2011 Report on Achieving food Security in Climate Change Majority of European fish stocks are over exploited. In Europe aquaculture accounts for only 20% of the total fisheries production compared to 47% globally and Europe imports a large share of its consumed fish and seafood. Source: FAO, 3

4 Bioeconomy: What is at stake? Reducing dependence on fossil resources and addressing climate change Food, Oil and Biofuels Price % increase Cost of various biofuels compared to gasoline 400,00 % in c re a s e 350,00 300,00 250,00 200,00 150,00 100,00 50,00 0, Years Crude Crude Oil Oil Prices (% increase Increase Dollar/Barrel). Source : Own elaboration based on US Energy Source: Information US Energy Administration Information Administration Biofuels Prices (% Increase Dollar/Barrel) Biofulels Source Prices : Own elaboration (% increase based Dollar/Barrel). onus Energy Source: Information UBS Administration Diapason Commodity Management Real Food Price Index (% Increase). Real Source Food : Own Price elaboration Index (% based Increase). onus Source: Energy FAOInformation Administration Poly. (Biofulels Prices (% increase Dollar/Barrel). Source: UBS Diapason Commodity Management) Poly. (Crude Oil Prices (% increase Dollar/Barrel). Source: US Energy Information Administration) Poly. (Real Food Price Index (% Increase). Source: FAO) Source: Nature, Bioethanol Standard Greenhouse Gas reduction Corn (EU produced) 49 Palm oil rd generation biofuels: - will produce 15 to 300 times more fuel by km² - will be harvested 20 to 200 times faster than conventional crops for 1st and 2nd generation biofuels. Grain Biodiesel Standard Greenhouse Gas reduction Grain straw 85 Fisher-Tropsch Cellulose 95 Wood waste 74 Algae 90 Sugar cane 71 Sunflower seeds 51 Grown wood 70 Rape seed 38 Sugar beet 52 Soy 31 Source: 4

5 Bioeconomy: What is at stake? Building competitive Bio-based industries in Europe: Growth and jobs innovation-driven High valued-added products: 4-5 times higher potential for job creation and revenue than the primary production. Each euro invested in Research and Innovation in the bioeconomy sector will generate 10 euros by 2025 Research and Innovation will enable European Industry to launch new products (ANIMPOL - Polymers and fuels from animal residues), improve industrial processes (HIGHTECH EUROPE - Integrating technical development in the food industries) an become more sustainable (BIONEXGEN - Biocatalysts for green chemicals) Source: Innovation Scoreboard 2011 Research and Innovation will offer new opportunities to develop the bioeconomy: -increase of primary sustainable production protecting the environment and biodiversity (CATCH-C - Compatibility of Agricultural Management Practices and Types of Farming in the EU to enhance Climate Change Mitigation and Soil Health) -more efficient and sustainable industrial processes in food/chemical industry (TARPOL - Synthetic biology targets environmental pollution biorefineries). 5 Currently only 5% or 11 Mha of EU arable land is used for industrial crops, another 5% potentially available as unutilised land. Additional agricultural biomass could come from increased productivity as well as specific crops on marginal lands (fast growing willows etc).

6 Bioeconomy: What is at stake? Research and innovation to produce renewable raw materials sustainably in agriculture, forestry, fisheries and aquaculture Biopact and to process renewable raw materials into value added products in the food, bio-based and energy industries. 6

7 The Bioeconomy Strategy The Bioeconomy Strategy promotes sustainable production of renewable resources from land and sea and their conversion into food, bio-based products, biofuels and bioenergy. INVESTMENTS IN RESEARCH, INNOVATION AND SKILLS REINFORCED POLICY INTERACTION AND STAKEHOLDER ENGAGEMENT ENHANCEMENT OF MARKETS AND COMPETITIVENESS IN BIOECONOMY SECTORS 7

8 INVESTMENTS IN RESEARCH, INNOVATION AND SKILLS Ensure substantial EU and national funding for bioeconomy and innovation. Horizon2020, EIT, KICs, National Funding Increase the share of multi-disciplinary and cross-sectoral research and innovation. Knowledge acquisition/technology exchange, develop an EU SME support infrastructure, boost the development of technologies related to bio-based industries Promote the uptake and diffusion of innovation in bioeconomy sectors; create feedback mechanisms on regulation and policy. Expand support to knowledge networks (EIPs and bioclusters), provide level playing field for patent development, enhance the role of SMEs/ primary producers/end customer. Build the human capacity required to support growth and integration of bioeconomy sectors New university/vocational bioeconomy curricula, EU talented researchers training/mobility/career development and exchange, Life Science/Marine/Agricultural Universities Forum 8

9 ENHANCEMENT OF MARKETS AND COMPETITIVENESS IN BIOECONOMY SECTORS: Provide the knowledge-base for sustainable intensification of primary production. tools to aggregate data on biomass and biowaste availability/use, trade-offs between various types of land uses, (predictive) tools on pests and disease outbreaks. Support expansion of new markets; facilitate green procurement for bio-based products. green procurement for bio-based products, European product information list, specific trainings for public procurers, pilot plant infrastructures, new/more efficient technologies/processing methods Promote the setting up of networks for integrated and diversified biorefineries, establish a PublicPrivatePartnership for bio-based industries creation/networking of clusters of integrated and diversified biorefineries in Member State/Europe, public private initiative for research and innovation to support the sustainable use of renewable resources Develop science-based approaches to inform consumers about product properties consumer awareness of healthier food choices, encourage industry to reformulate products to reduce health risk 9

10 REINFORCED POLICY INTERACTION AND STAKEHOLDER ENGAGEMENT Create a Bioeconomy Panel to enhance synergies and coherence between policies; foster participation of researchers, endusers, policy- makers and civil society Panel involving European Commission services, Member States and stakeholders, informed public debates on bioeconomy issues, Bioeconomy Stakeholders Conferences Establish a Bioeconomy Observatory and develop forward-looking and modelling tools follow the evolution of bioeconomy markets/ impacts of policies/research and innovation activities, new indicators/dbs, regular foresights and forecasts Support the development of regional and national bioeconomy strategies mapping research and innovation activities, competence centres and infrastructures, short-chain local economic activities and urban-rural and coastal interlinkages Develop international cooperation to jointly address global challenges (e.g. food security, climate change) global standards for bioeconomy sectors, international cooperation and synergies among R&I bioeconomy programmes 10

11 The Bioeconomy s growth potential new jobs 45 billion in value added in bioeconomy sectors 2 trillion annual turnover 1 billion value added, ±9 % GDP 22 million jobs, ± 9% of the EU's workforce Source: The Knowledge Based Bio-Economy (KBBE) in Europe: Achievements and Challenges, Full Report (2010); EC, Facts and figures on the CFP, Basic Statistics Data, ISSN , 2010 Edition; Innovating for Sustainable growth: a Bioeconomy for Europe, European Commission Communication 11

12 The European Consumer s point of view: Consumption expenditure of households by consumption purpose EU27, 2010 Miscellaneous goods and services; 10,79% Education; 1,44% Communications; 2,88% Health; 3,60% Alcoholic beverages, tobacco and narcotics; 3,60% Furnishings, household equipment and routine maintenance of the house; 5,76% Source: Eurostat Clothing and footwear; 5,04% Restaurants and hotels; 8,63% Recreation and culture; 8,63% Housing, water, electricity, gas and other fuels; 23,74% Food and nonalcoholic beverages; 12,95% 12 Transport; 12,95% Main Bioeconomy Impacted Sectors by new products/improved industrial processes: Fuels + Food = 37% of Households Consumption expenditure

13 Through policy interaction and stakeholder engagement, coherent investments in Research and Innovation under the Bioeconomy Strategy Increase the resilience, sustainability and productivity of the food supply chain Reduce dependence on fossil resources and addresses climate change Foster European Industries competitiveness, creating growth and jobs 13

14 Thank you! 14

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