Implementation of low carbon

roadmaps –
EU industrial policy perspective
CEPS-CCAP Workshop, Brussels 9 Nov 2012

European Commission, DG ENTR Unit B1

Philipp TROPPMANN
 EU industrial policy:
Long-term priorities are still valid
•  Improving the business environment
•  Strengthening the Single Market
•  Industrial innovation strategy
•  Promoting Sustainability
•  Facilitating industrial change
•  Improving sectoral policy frameworks

BUT

The economic situation has deteriorated and

industry can contribute to economic recovery,
growth creation and growth
Industry has reacted positively to the crisis
but the recovery has stalled
EU27 production trend
What are the problems that
industry is facing?
Major problem: investment in industry has fallen
Without it, competitiveness will not improve
 Difficulties to finance

Loans to non-financial corporations in the euro area

Concern about the availability of the
right skills required by industry

Source: CEDEFOP, Skills forecast 2012

 Main objective of the reinforced
industrial policy

•  Restore business confidence & revitalise investment

market market financing skills

uncertainty opportunities problems shortages

lack of confidence

lack of investment
 Pillars of the reinforced industrial policy

•  Investment in innovation - providing the right

framework conditions with a focus on six priority areas
•  Better market conditions – improvements in the
functioning of the Internal Market and opening up
international markets
•  Access to capital – mobilising public resources and
unlocking private funds
•  Human capital and skills – equipping labour force for
industrial transformations
Advanced manufacturing Key Enabling
Clean vehicles Technologies
technologies

Sustainable Bio-based products Smart Grids

construction

Target: 20% industry share in GDP (2020)

 How to achieve our objectives

•  A strategic partnership between the EU, the

Member States and industry
•  The new cohesion policy instruments for
2014-2020 will help Member States to increase
their competitiveness through smart
specialisation
•  European Semester and Country-Specific
Recommendations
•  Ultimately, it is about industry playing its role and
investing in innovation, in conquering new
markets and in skills
SILC – Sustainable Industry Low Carbon

2000

1800

1600

1400
kg CO2/ t product

1200

1000
Purchased allowances
800
Benchmark

600

400
Free allowances
200

0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69

10% best-sample installations

 SILC – A two-step approach
Analysis & Screening

Candidate sectors
SHORT-TERM
Development & implementation of
innovation projects

MID-/LONG-TERM
Scale-up &
demonstration
projects

SILC  I  :  SHORT-­‐TERM  innova3on  measures  

Benchmark line SILC  II  :  MID-­‐/LONG-­‐TERM  innova3on  measures  

 SILC initiative in figures

SILC I SILC II

Funding Programme CIP/EIP Horizon 2020

Time horizon short term mid-/long-term

Start of projects 2011-2013 2014-2020

Duration 18-30 months 3-5 years*

EU funding EU co-financing, Grant Agreement

EU funding rate 75% 50-60%*

max. EU contribution up to 950 k€/project* up to 30 M€/project*

Nb of projects (expected) 6-9* 1-3*

* Indicative information only – subject to further confirmation

 Outlook

•  "Clearly, the best protection against the risk of

carbon leakage would be effective global action"*

•  GHG emission reductions by 83-87% in 2050* in

the industrial sector
•  not a target in its own right
•  a contribution to a global effort to achieve the 2°C-target

•  Without global agreement – how does a

decarbonised Europe look like?

"A roadmap for moving to a competitive low carbon economy in 2050"

(Commission Communication , March 2011)
Thank you for your attention!