Summary Meeting RRM-Group 2 April 2014 at the premises of EU Commission, DG Enterprise and Industry in Brussels Before starting the agenda the chairman highlighted the priority works of this group, contributing on economic market data and available biomass flow data for industrial use, intermediates and bio-based products to the activities of the EU Bioeconomy Observatory together with other stakeholders, e.g., Nova Institute, Cefic and EuropaBio. To identify and define sustainable biomass as well as bio-based products different aspects needs to be taken into account. Standardisation, certification and labelling will play an important role for the RRM-Group, since experts of the RRM-Group are being also members of the different CEN TC 411 ‘Bio-Based Products’ Working Groups and the Commission Expert Group on Bio-Based Products . All parties are successfully cooperating with each other. A direct link between standardisation and public procurement activities in the area of bio-based products is essential allowing, for example, the passing of information on the nomenclature of biobased products for possible criteria drafting in public procurement. The above principles were followed in this RRM-Group meeting agenda that was agreed with DG Enterprise as well. 1. Collection and Evaluation of Economic Market Data 1.1 Actualised ERRMA Template Following the concept of the value chain, starting from biomass origin and its subsequent flow to intermediates, platform chemicals and bio-based products, Dr. Busch explained the structure of this template. Thanks to the contribution of, e.g., AAF, Fediol, CEFS and different CEFIC sector groups a number of aggregated data contributions were received, discussed and integrated. This successful process is seen as an important step forward in obtaining a better grip of the biomass flow situation and market development of bio-based products forming a priority activity area in the European Industrial Policy and a substantial update of the results presented at the last RRM-Group meeting in November 2013. The template will be further updated and will be posted on the ERRMA-website together with this meeting summary and all presentation as usual (time period -2- May/June 2014).There was consensus that this will continue to be a dynamic approach and will be progressing also in the future. 1.2 Quantification of Renewable Raw Materials (RRMs) used by the EU Chemical Industry Based on studies from FNR, VCI and CEFIC Members, the quantitative structure of raw materials used in the European chemical industry, the RRMs input to the organic chemicals sector of this industry and the quantitative use of RRMs in different applications by the chemical industry was discussed and further explained. The use of RRMs by the European Chemical Industry covers about 9% based on the total available organic resources (including naphta, natural gas,, coal)The presentation is available on the ERRMA website. 1.3 Summary of the Report of the Nova-Institute on the Biomass Flow The results presented included the overall biomass flow especially related to the industrial materials use of biomass for the manufacturing of high value added products including bio-based products. This also included different applications beyond chemical industry, the impacts on economy and ecology as well as the technical–economic, social and environmental evaluation of biorefineries and other bio-based products based on the results recently becoming available from different EU-Research Projects including the EU-SUPRABIO, BIOCORE and EUROBIOREF (see http://www.suprabio.eu/events/final-conference/ )-Projects as well as various market studies on bio-based comoposits. This very comprehensive study included European and worldwide data. The information is available from the Nova-Institute on request as well as via its web-site (see http://www.nova-institut.de/bio/?lng=en ). 2. Status of the EU Bioeconomy Observatory Based on the 2013 DGJRC Report (see also ERRMA link of the RRM-Group meeting 13 November 2013) the timelines of the set-up of the bioeconomy observatory were highlighted as follows: Duration: Starting 2013 until 2015 and beyond. Dissemination of the bioeconomy observatory website is foreseen for the second quarter 2014 (test phase) until September 2014 (online). This web-site is expected to provide information on industry statistics, market studies, research projects and policy recommendations. The information sources include EU Commission, Member States, industry and other stakeholders. Contributions of the RRM-Group and other organisations are welcome. The presentation on this agenda item is available on the ERRMA website. -3- Thematic Issues: “Bio-based Industry Survey” The objectives of this survey of the bio-based industry are as follows: General Objectives: Description of the current status and evolution of the EU bio-based industry. Specific Objectives: Analyse business activity in the EU bio-based industries; Share of biomass (input) in the bio-based products (output); Drivers and constrains affecting the development of bio-based products; Impact of EU bio-based industry on the EU economy; Performance of the bio-based in comparison to. fossil-based products; Quantitative/qualitative comparison of the EU bio-based industry with key EU competitor countries. The list of bio-based products subject of the study include: Chemical Building Block Substances; Polymers; Paints & lacquers & coatings; Lubricants; Surfactants; Enzymes; Materials and composites; Insulation materials; “Phase Change Materials”. The presentation on this topic can be downloaded from the ERRMA website. 3. Results of the last meeting of the Commission Expert Group on Bio-Based Products The objective of the Commission Expert Group for Bio-based Products is to issue an interim report after two years on the state of play concerning the implementation of the Lead Market Initiative (LMI) priority recommendations in the framework of the reviewed industrial policy including information on biomass supply, standardisation activities, public procurement, and awareness raising. So far two sub-groups have been proposed by DG ENTR one on “Public Procurement” (coordinators: Ana Maria Bravo and Harmen Willemse) and one on “Awareness Raising” (coordinators: Daniele Colombo and Christine Stiehl). Members have been recruited from the Expert Group. The group coordinators are required to ensure the consistency of the activities of the working group with the objectives and guidance -4- given by the Expert Group. 4. Bio-Based Products and Public Procurement The results and consequences of the Krakow Conference held on the 14 and 15 November 2013 were judged by DG Enterprise successful, since the industry representative could demonstrate the importance of the available standardisation documents from different CEN TCs and CEN TC 411 Working Groups (WGs) for public procurement (example: bio-based and biodegradable plastics for food and catering services for large public events in regions in Italy. The details can be found in different presentations that are available for downloading on the ERRMA website. DG Research and Innovation reported on the Horizon 2020 call topic Number “ISIB 7 2014: Public procurement networks for innovative based products” as follows: The specific challenge: By introducing requirements for sustainability in tender specifications, the demand from public authorities could significantly increase the market for bio-based products and drive technological innovation in this area. Scope: Coordination and support activities aim at investigating the feasibility and the preparation Innovation in Public Procurement in the area of bio-based products and related services. The specific aim is boosting the knowledge and application of biobased products. Improving skills of public actors related to bio-based products and increasing awareness of bio-based products and their potential capabilities building upon the completed LMI activities and contributing to also Green Public Procurement activities. There was consensus amongst RRM-Group Members that the activities in Italy will fit well into such activities. The presentation of DG Research and Innovation can be downloaded from the ERRMA website. 5. Progress on Sustainability Indicators and Assessments for Bio-Based Products: The NEN secretary of CEN TC 411 reported on its activities on nomenclature/vocabulary, methods and techniques for the determination of the biobased content of products, sustainability indicators including assessment approach, LCA and certification schemes. These activities are essential allowing for harmonised approaches for the determination of sustainability and certification of biomass and biobased products. The presentation of CEN TC 411, WG 4 and WG 5 reported at the -5- last RRM meeting in November 2013 can also to be downloaded from the ERRMA web-site like the one presented at this meeting. 6. “Sustainable Supply of Raw Materials for the Industrial Use of Biomass”; Conference of FNR / BMEL on the 3 April 2014 in Brussels The initiative of the German Ministry of Agriculture/FNR covers sustainability requirements for the industrial, food- and feed based use of biomass building upon the activities of the EU Renewable Energy Directive (RED) taking into account the specific needs of industry (e.g. food, feed and chemical industry) and closing this existing gap by an Industry Self-Commitment instead of setting up a specific regulation. The coherence with CEN activities (see agenda 5) is seen as being essential. In that sense a presentation of CEN will also be performed at this conference. The presentation of FNR on this agenda item can be downloaded from the ERRMA website. 7. Communication on the European Industrial Renaissance Bio-Based Products and Availability of Raw Materials The bioeconomy strategy and its action plan aim to to pave the way to a more innovative, resource efficient and competitive society that reconciles food security with the sustainable use of renewable resources for industrial purposes, while ensuring environmental protection. Research and innovation agendas in bioeconomy sectors contribute to a more coherent policy environment. The aim is to find synergies and respect complementarities with other policy areas such as the CAP, environmental, industrial, employment combined with energy and health policies. Bio-based products form one of the different priority topics. The policy context is summarized as follows: Granting access to sustainable raw materials at world market prices. This will require the application of the cascade principle in the use of biomass and eliminating any possible distortions in the allocation of biomass for alternative uses (e.g. energy). Ensuring access to biomass for different purposes to enable efficient application via the application of the cascade use principle for biomass. The institutional operational structures include: Bio-economy Panel: high level Industry Stakeholders; Bio-economy Commission: Internal EU Inter-Service Group; Bio-economy Observatory performed by the JRC in cooperation with the RRMGroup and other stakeholders Renewable Raw Materials (RRM) Group: (Industry & MS-Agencies); Commission Expert Group for Bio-based Products. All these groups are cooperating closely with each other enabling coherent policy activities. -6- The presentation is available for downloading from the ERRMA website. 8. Study on Wood Raw Material Supply and Impact for the EU-Wood Processing Industry The EU Forest-Based Industry Strategy 2014-20 addresses the following aspects: To stimulate growth; To save EU resource & energy efficiency objectives; To determine raw materials, their sources and their flows; Logistics (wood harvesting, infrastructures & transport); Structural adaptation; Innovation & RTD; Education, training & skills; Coherence of EU legislation and costs arising; Implementation of EU climate policy, including beyond 2020; International competition, trade and co-operation; Information, communications and image. Main recommendations of the study on wood raw material supply and impact for the EU-Wood Processing Industry y include: • • On the supply side: Domestic EU wood supply can be addressed through: • better motivation and organisation; • better forest and public infrastructures – improving recovered paper quality. On the demand side: Encouraging sustainable building at EU and Member State levels improving markets for wooden building products and bioenergy generation from woody biomass. This use must be efficient, to reduce pressure on wood supplies and prices. Combined heat and power should be prioritised. It is important to integrate the Lead Market Initiative recommendations into the forest policy to increase the bio-based products market. The presentation is available for downloading from covered in the ERRMA website 9. PROSUITE: “Biorefineries and organic waste management – Final Sustainable Assessment” The new approach developed by the EU-PROSUITE Project (see http://www.prosuite.org/web/guest/prosuite-decision-support-systemdss;jsessionid=8D6478B756FAE443C0E2FCCB659620EA) and tested in different case studies (see http://www.prosuite.org/c/document_library/get_file?uuid=5b77acb593d5-466f-9a67-3dd136a0a388&groupId=12772 or via -7- http://www.prosuite.org/web/guest/project-casestudies;jsessionid=8D6478B756FAE443C0E2FCCB659620EA ) covering social, economic and environmental aspects integrated five impact categories: Impact on natural environment; Impact on exhaustible resources; Impact on human health; Impact on social well-being; Impact on prosperity. The presentation is available for downloading from covered in the ERRMA website. An intensive cooperation and coordination between EU-PROSUITE-Project and the CEN activities will be executed building also in the Standardisation Mandate. 10. Workshop on “Cross-Sectorial and Cross-border cooperation of Clusters in Support of Green Chemical Industries” on 27. March 2014 in Brussels The role of clusters was highlighted and will contribute to solve chemical industries position being under strong competitive pressure. A stronger industrialisation of EU industries is needed where bio-based chemicals can play an important role. In so far regional clusters play a relevant role related to bio-based chemicals and EU industrialisation. Four principle aims are envisaged: The 20% GDP target for European Manufacturing is quite ambitious; Clusters will not replace a product by others but to create new industries; New value chains elaborated in the clusters in the field of bio-based industries are requested; The integration must be reinforced along the value chain. Clusters related to bio-based chemicals are aiming at: Work to attract new emerging industries in the field of greener chemicals; Work for cross sectorial and cross border relations with other clusters; Contribute to a structural change in the chemicals industry; Collaborate in cooperation platforms such as the ECCP, INTERREG projects The conclusions of this workshop include: Green chemical industries are already created and will better grow around cross sectorial clusters; Access to biomass and logistics can have different models (example Champagne/Picardie – Sachsen-Anhalt or the customs of the Delta region); Access to finance can be favored through participation in clusters; Clusters bring together companies (feedstock-upstream and clients-downstream). -8- It was agreed that such regional aspects will become more and more important for cross border and cross sectorial cooperation allowing for an improved industrial competitiveness towards third countries. 11. Date next meeting 2014 The date of the next RRM-Group meeting is scheduled for the 13 November 2014 at the premises of DG Enterprise in Brussels. 16. May 2014