The Bioeconomy in Europe and in Italy, and the Italian

Bioeconomy strategy

Fabio Fava

Italian Representative, i) Horizon2020 SC2 Programming Committee; ii) “States Representatives Group” of Public Private Partnership Biobased industry (BBI JU);

iii) BLUEMED Initiative Strategic Board

&

School of Engineering, University of Bologna, Bologna, Italy

(E-mail: fabio.fava@unibo.it)

BIOECONOMIA ED ECONOMIA CIRCOLARE: NUOVE OPPORTUNITÀ DI SVILUPPO TERRITORIALE

Palazzo della Borsa, Sala delle Grida Genova, September 29, 2017

• The Bioeconomy Europe and in Italy: state of play, needs

and opportunities;

•The Italian Bioeconomy strategy (BIT): objectives,

priorities and roadmap;

•How Horizon2020 (SC2) and the PPP Biobased industry

(BBI JU) sustain R&I in the Bioeconomy domain.

Outline

The European Bioeconomy (a)

In Europe: about 2.200 Bln €/y and 18.6 Mln of jobs

(Bio)Cosmetics

Chemical TextilePulp/

Paper EnergyFuels

Food ingredients

Pharma

Fertilizers, Feed

The European Bioeconomy (b)

Source: SCAR – EUROSTAT 4th foresight 2015

The European Bioeconomy Strategy: main priorities (under revision)

Bioeconomy in Italy

Source: SCAR – EUROSTAT 4th foresight 2015

IT is the 2nd EU-MS as success rates in Horizon2020 SC2 & BBI JU programs.Qualified R&I scores and public/private actors/stakeholders but oftenfragmented; sometimes lacks of alignment among national policies, fundingprogrammes and infrastructures.

about 253 Billion €/y 1.65 Million of jobs

Primary production: main challenges and opportunities

Problems:� Limited profitability due to low average size and low revenue

of farms, poorly organized value chains �abandonment,

reduction of cultivated land surface; � Poorly innovative agricultural practices and systems;� Depletion of soil organic matter and water scarcity;� Lack of training of farmers.Opportunities: � Valorize plant/animal biodiversity and ecosystem services;� Improvements crops/agricultural practices; precision farming;� Valorize agricultural residues and effluents.

Agriculture, Livestock and aquaculture.

Used land:~13 M ha, 90% in rural areas

Forestry.Used area: ~12 M ha

Problems:� Limited valorization of forest products ->abandonment

with biodiversity depletion, also due to climate change;� Lack of training of forest company managers on new

opportunities and business management.Opportunities:�Valorize forest biodiversity and unique ecosystem

services;�Valorize wood and forest products.

~ 56 Billion €/y~ 920,000 jobs~ 56 Billion €/y~ 920,000 jobs

8

Food Industry.

Problems:� Structural limitations (very small SMEs), lack of value chain coordination;� Strong products counterfeiting and imitations;� Low efficiency of food chains with remarkable food/biomass losses,

energy and water consumption and by-products/waste production; Opportunities:� Leading position for “typical/quality” foods (DOP, IGP,STG, etc.);� Digitalization and interoperability along the value chains (Industry 4.0); � High volumes of by-products/waste sources of ingredients/bioproducts

Food and biobased industry: main challenges and opportunities

Problems:� Wood processing industry based on imported raw material and on the

production of medium/low value products;� Limited availability of low cost, sustainable non-food feedstocks;� Limited market for national biobased products; occurrence on the market

of products that do not comply to international standards/labeling;� Insufficient clarity/transparency in the labeling of bio products;Opportunities:� Connect IT wood production with the IT wood processing industry and

biorefineries to produce conventional and new/higher value products; � Use as feedstocks the produced organic wastes/byproducts/effluents; � Exploit abandoned/marginal lands for producing biomass and re-covert

former industrial sites.

BiobasedIndustry(Wood, Pulp & PaperIndustry,Biorefinery)

~132Billion €/y~ 390,000

jobs

~132Billion €/y~ 390,000

jobs

~63Billion €/y~ 300,000

jobs

~63Billion €/y~ 300,000

jobs

Marine and maritime sectors: main challenges and opportunities

~ € 43 Billion €/y ~ 835,000 jobs~20% due to Bioeconomy

After: V RAPPORTO

SULL’ECONOMIA DEL MARE Unioncamere, 2016

About 8,000 km of coastline

Problems:� Unsustainable fishery; productions highly affected by climate changes; � Increasing import of fish from areas with uncertain regulations and monitoring;� Sea pollution (due to chemicals, litter, etc), presence of invasive species; � Coastal urbanization, over- and un-sustainable exploitation of beaches.Opportunities: � Exploit marine aquaculture (also off shore);� Exploit local marine biodiversity;� Exploit potential of bioeconomy at the land/sea interface.

• The Bioeconomy Europe and in Italy: state of play, needs

and opportunities;

•The Italian Bioeconomy strategy (BIT): objectives,

priorities and roadmap;

•How Horizon2020 (SC2) and the PPP Biobased industry

(BBI JU) sustain R&I in the Bioeconomy domain.

Outline

The Italian Bioeconomystrategy

AVAILABLE AT web site:www.agenziacoesione.gov.it/it/S3/Consultazioni_pubbliche/Bioeconomy.html

Promoted by Italian Presidency ofCouncil of Ministers and endorsed by:

• Ministry Education, University,Research;

• Ministry Agriculture, Food,Forestry;• Ministry Economical Development;• Ministry Environment, Land, Sea;• Ministry for territorial cohesion;

• Committee Productive Activities,Regions Conference;

• Agency for Territorial Cohesion;

• IT Technology Clusters GreenChemistry, AgriFood andBlueGrowth.

1 Bioeconomy – Basics1.1 In the global and EU context1.2 At Italian level1.3 Bioeconomy at regional levels

2 Raw materials sources and the opportunities of biowaste

3 Bioeconomy in everyday life

4 The social dimension of the bioeconomy

5 Legislative framework, funding measures and market pull measures

6 Challenges and action plan for the Italian bioeconomy

7 Implementation and monitoring

8 Actors involved and road map

The Italian Bioeconomy strategy:the vision

(Bio)Cosmetics

Chemical TextilePulp/

Paper EnergyFuels,CH4

Food ingredients

Pharma

Fertilizers, Feed

Recovery of energy& Landfilling

Bioeconomy & Circular Economy

Parliament Resolution: Jul 9 2015; EU adoption of Circular Economy package: Dec 2,2015 In EU by 2030:+30% resource saving;-50% CO2 emission;+3% GDP;+1 M jobs

Product design

Process efficiency

Quality productsLogistics

Reuse and(bio)conversion ofby-products/wasteto valuable products

Oil, Coal

After: MacArthur Foundation

�CO2fixation and production of Feedstocks; �Regeneration of abandoned lands/sites;�Socio/economical growth rural/costal areas

Biomass production

The Italian Bioeconomy strategy:main objective and priorities

Objective:Increase Italian Bioeconomy turnover and jobs by 20% by 2030.

Main priorities:a) Improve sustainably the productivity and quality of products of each of

the sectors and more efficiently interconnect them, by creating longerand more locally routed value chains, where the actions of public and

private stakeholders integrate across all major sectors;

b) Exploit national terrestrial/marine biodiversity, ecosystem services andcircularity, and regenerate abandoned/marginal lands and formerindustrial sites;

c) Contribute to the growth of bioeconomy in the Mediterranean area viaPRIMA and BLUEMED initiatives, for a greener and more productiveregion, a wider social cohesion and political stability in the area;

d) Create: i) a wider and more coherent political commitment, ii) moreinvestments in R&I, spin off/start up, education, training,communication (public engagement), iii) new and better tailoredpolicies; iv) a better coordination between regional, national and EUstakeholders/policies, and v) tailored market development actions.

Tools for boosting IT Bioeconomy

Mission & actions:�Identification of main regional & national R&I needs and opportunities;�Promotion of indentified priorities/needs towards regional, national andEU institutions funding R&I;�Promotion of partnerships and the participation of public R&Iinstitutions, industry and associations in regional (PNR, FESR, FSE, etc.)national and EU (Horizon 2020, BBI JU, JPIs) agendas/programs for R&I,by reducing fragmentation and duplication, and fostering effectiveinnovation.

CLUSTER NAZIONALE

BLUE GROWTH

• The Bioeconomy Europe and in Italy: state of play, needs

and opportunities;

•The Italian Bioeconomy strategy (BIT): objectives,

priorities and roadmap;

•How Horizon2020 (SC2) and the PPP Biobased industry

(BBI JU) sustain R&I in the Bioeconomy domain.

Outline

Horizon 2020: three priorities

Excellent science

Industrial leadership

Societal challenges

€ 24.4 bln

€ 29.7 bln€ 17.0 bln

Horizon2020, the EU Commission research and innovation funding programme (~79 Billion, 2014-2020)

Societal challenges

1. Health, demographic change and wellbeing (7.472 Bln)

2. Food security, sustainable agriculture and forestry, marine and maritime and inland water research, and the bioeconomy (3.851 Bln)

3. Secure, clean and efficient energy (5.931 Bln)

4. Smart, green and integrated transport (6.339 Bln)

5. Climate action, resource efficiency and raw materials (3.081 Bln)

6. Inclusive, innovative and reflective societies (1.310 Bln)

7. Secure societies (1.695 Bln)

Bioeconomy as a core Societal Challenge

SC2

WP 2014-2015

SFS-Sustainable Food

Security

BG-Blue Growth

SFS – Sustainable Food

Security –

BG - Blue Growth

BE – Bio-based innovation

for sustainable goods and

services

RUR – Rural Renaissance

SC2

WP 2016-2017

NewISIB- Innovative,

Sustainable and

Inclusive Bioeconomy

Budget:~ 450 M €

Budget: ~ 750 M €

Societal Challenge 2 (Bioeconomy): ~3.8 Billion, 2014-2020

2014 2015 2016

Success rate (%) 17 19 37 Ranking 4th 3rd 2nd

SFS – Sustainable

Food Security –

BG - Blue Growth

RUR – Rural

Renaissance

SC2

WP 2018-

2020

€ ≈710 Mil

€ ≈210 Mil

€ ≈300 Mil

Circular Bioeconomyinvestment platform

€ ≈100 Mil

Societal Challenge 2: main features WP 2018-2020

WP PUBLICATION: OCTOBER 2017

SustainableFood

Security

From functionalecosystems to healthy food

Environment and climatesmart food production and

consumption

Targetedinternational cooperation

Building capacities

Societal Challenge 2: potential SFS calls 2018-2020

Societal Challenge 2: potential new R&I priorities SFS 2018-2020 (a)

From functional ecosystems to healthy food

�Biodiversity in action: across farmland and the value chain�Microbiome applications for sustainable food systems

�Integrated health approaches and alternatives to pesticide use�New and emerging risks to plant health�Stepping up integrated pest management

�Making European beekeeping healthy and sustainable

�Improving animal welfare�Anti-microbials and animal production�A vaccine against African swine fever

�Personalized Nutrition�Future proofing our plants�Towards healthier and sustainable food�Alternative proteins for food and feed

Environment and climate-smart food production and consumption�Climate-smart and resilient farming�European Joint Programme on agricultural soil management�Forest soils Research and Innovation Action�Integrated water management in small agricultural catchments

�Innovative and citizen-driven food system approaches in cities

�Integrated system innovation in valorising urban biowaste

Building capacities�Food Cloud demonstrators�Monitoring food R&I investments and impacts

�Genetic resources and pre-breeding communities�Innovations in plant variety testing�Agri-Aqua Labs

�ERANETs in agri-food

Societal Challenge 2: potential new R&I priorities SFS 2018-2020 (b)

Targeted international cooperation�Supporting microbiome coordination and the International BioeconomyForum

EU-Africa Partnership on Food and Nutrition Security and Sustainable Agriculture (FNSSA)�Support to the implementation of the EU-Africa Research and Innovation Partnership on Food and Nutrition Security & Sustainable Agriculture (FNSSA)�Food Systems Africa�Sustainable Intensification in Africa�Diversifying farmers’ income through small bio-based concepts

EU-China FAB Flagship initiative�Integrated approaches to food safety controls across the agri-food chain�Highly efficient management of soil quality and land resources�High-quality organic fertilisers from biogas digestate

Societal Challenge 2: potential new R&I priorities SFS 2018-2020 (c)

Societal Challenge 2: RUR calls 2018-2020

Societal Challenge 2: potential new R&I priorities RUR 2018-2020 (a)

From farm to society: understanding dynamics and modernising policies�Building modern rural policies on long-term visions and societal engagement�Socio-economic impacts of digitisation of agriculture and rural areas�Contracts for effective and lasting delivery of agri-environmental public goods�Analytical tools and models to support policies related to agriculture and food

Organising sustainable food and non-food value chains under changing conditions�Closing nutrient cycles�Realising the potential of regional and local bio-based economies�Circular bio-based business models for rural communities�Sustainable wood value chains

Taking advantage of the digital revolution

�ICT Innovation for agriculture – Digital Innovation Hubs for Agriculture�Enabling the farm advisor community to prepare farmers for the digital age�Digital solutions and e-tools to modernise the CAP

Boosting innovation and enhancing the human and social capital in rural areas

�Thematic networks compiling knowledge ready for practice�Fuelling the potential of advisors for innovation

Societal Challenge 2: potential new R&I priorities RUR 2018-2020 (b)

�Towards a Baltic and North Sea research and innovation programme

�Coordination of marine and maritime research and innovation in the Black Sea

�Sustainable harvesting of marine biological resources

�Sustainable European aquaculture 4.0: nutrition and breeding

�Multi-use of the marine space, offshore and near-shore: pilot demonstrators

�Sustainable solutions for bio-based plastics on land and sea

�Blue Bioeconomy Public-Public Partnership

�The Future of Seas and Oceans Flagship Initiative

�All Atlantic Ocean Research Alliance Flagship

Societal Challenge 2: potential new R&I priorities BG 2018-2020 (a)

SC3Energy

SC4Transport

SC5Climate

• wave energy• floating wind farms• aquatic biomass biofuel• offshore storage of CO2

• Shipping renewable fuel• Energy islands

• Innovative ships • autonomous ships• ship emissions• unmanned activities • underwater noise • maritime transport safety• Marine accidents response

• Climate change, biodiversity and ecosystems

• recovery of sea resources• sea level changes• Cryosphere

SOCIETAL CHALLENGES

INFRA

LEIT

SC5

SC4

SC3

SC2

BG

Societal Challenge 2: potential new R&I priorities BG 2018-2020 (b)

INFRA

LEIT

SC5

SC4

SC3

SC2

BG

LEIT

SPACE – Copernicus Marine Services, ocean models

NMBP: off-shore energy materials

Research VesselsInfrastructures

INDUSTRIAL LEADERSHIP / RESEARCH INFRASTRUCTURES

PUBLIC-PRIVATE PARTNERSHIP BIOBASED INDUSTRY JU

Societal Challenge 2: potential new R&I priorities BG 2018-2020 (c)

Supported by

A Public-Private Partnership

on Bio-Based IndustriesRealising the European Bio-economy Potential

http://www.bbi-europe.eu/

€3.7 billion

Private partner73% of investment

Public partner27% of

investment

A structured approach via 5 Value Chains (VC)...

VC 1: From lignocellulosic feedstock to advanced biofuels, bio-based chemicals & biomaterials

VC 2: Next generation forest-based value chains

VC 3: Next generation agro-based value chains

VC 4: New value chains from (organic) waste

VC 5: Integrated energy, pulp and chemicals biorefineries

and a marine bioresource exploitation value chain is coming...

The BBI JU: structure and priorities

Consortium of industries (BIC)

http://www.bbi-europe.eu/

■ 77 full members

(including subsidiaries)

• 43 Large industries

• 20 SMEs

• 14 Clusters

■ 137 associate members

• 45 Universities

• 70 RTOs

• 10 European trade organisations

• 7 Associations

• 3 European Technology

Platforms (ETPs)

• 1 Public Institution

• 1 Bank

■ Sectors covered to date

• Agriculture

• Agro-food

• Forestry/ pulp and paper

• Technology providers

• Chemicals

• Energy

16.465.883 €

12.581.375 €

18.877.639 €

Anno 2014 Anno 2015 Anno 2016

IT – Budget retained proposals

7

25

33

Anno 2014 Anno 2015 Anno 2016

IT - Proposals retained

Italian participation in BBI JU calls (2014-16)(b)

562.281 €

23.415.060 €

17.863.402 €

6.084.154 €

JTI-BBI-CSA JTI-BBI-IA-DEMO JTI-BBI-IA-FLAG JTI-BBI-RIA

Budget proposals retained (3 years)

ITALY

(submission)

2014 - 5th

2015 - 2nd

2016 - 1st

ITALY

(retained)

2014 - 5th

2015 - 4th

2016 – 2nd

The Italian Bioeconomy