INNOVATION DEALS: A NEW APPROACH TO REGULATION Vincenzo Gente I.2 Unit – Eco-innovation Directorate Climate Action and Resource Efficiency DG Research and Innovation

Circular Economy Package Adopted on 2 December 2015 Create the right environment for innovation and investments The Commission will launch a pilot approach for "innovation deals" to identify and address potential regulatory obstacles for innovators

Horizon 2020 'Industry 2020 in the Circular Economy' Cross-cutting call CIRC-01: Systemic, eco-innovative approaches for the circular economy: large-scale demonstration projects CIRC-02: Water in the context of the circular economy the possibility for beneficiaries of funded projects to apply for 'Innovation Deals' Interest to participate in an Innovation Deal is not taken into account during the evaluation procedure. Proposals will not be evaluated favourably because they express an interest in an Innovation Deals and will not be penalised for not expressing an interest. In this context, a new Focus Area has been included in the Work Programme 2016-2017: 'Industry 2020 in the Circular Economy'. This focus area gathers together the LEIT (leadership in enabling and industrial technologies) and the Societal Challenge (SC and SC2) pillars of Horizon 2020. This cross-cutting focus area tackles therefore the different elements that are part of the transformation towards a circular economy, from industry to society, contributing to sustainably boosting economic growth and renewing Europe's industrial capacities in a world of resource constraints. The aim is to position Europe as a front runner in moving to a circular economy and society, demonstrating on the ground the economic and environmental feasibility of the circular economy models. The description and topics of the 'Industry 2020 in the Circular Economy' Cross-cutting call can be found in the in the area of Cross-cutting activities (Focus Areas) of Horizon 2020 Work Programme 2016 – 2017. In particular the contribution of Eco-innovation and societal challenge 5 can be found in the Circular Economy section. In the general introduction and in the Circular Economy section, it is possible to find the aim and objective of the Focus Area, as well as an extended description of Systemic eco-innovation. As for Societal Challenge 5, the total available budget for 2016 is of 84,5 EUR. It will be possible to submit the proposal starting from 10 November 2015, and the first deadline is 8 March 2015.

Innovation Deals What? A new way to address EU legislative obstacles to innovation in an open and transparent manner, in the form of a voluntary cooperation between innovators, national/regional/local authorities and Commission Services An innovative better regulation instrument for facilitating development of innovative solutions to better achieve EU policy objectives The Circular economy offers an opportunity to reinvent our economy, making it more sustainable and competitive. This will bring benefits for European businesses, industries, and citizens alike. With this new plan to make Europe’s economy more sustainable and more competitive, the Commission is delivering ambitious measures to cut resource use, reduce waste and boost recycling. We will preserve resources that are increasingly scarce and subject to mounting environmental pressure or volatile prices, and reduce costs for European industries. We are supporting a new generation of European businesses which make and export more efficient and sustainable products and services around the globe, and create innovative, more resource efficient ways to provide services or products to customers. We are helping to create jobs for European citizens and opportunities for social integration and cohesion. We could create more than 170,000 direct jobs by 2035 through the measures on waste management alone, We are providing consumers with more durable, sustainable and less toxic products that save money and their increase quality of life. We will continue to deliver ambitious energy efficiency for products, which by 2020 will bring savings of 465 EUR per year per household on their energy bills We will contribute to preserving the environment and our planet, bring a substantial cut in carbon emissions and preserve threatened resources. We are taking measures which can reduce greenhouse gas emissions by more than 500 million tons between 2015 and 2035 We are increasing the competitiveness of key industry sectors including manufacturing, waste management and recycling, as well as reducing the dependency of the EU on raw material imports. Through long terms targets on waste and landfill, backed by clear supportive measures, we create incentives for action by Member States and investment certainty for businesses.

Innovation Deals Why? To offer a pragmatic, flexible and transparent approach to address innovation obstacles To trigger growth and jobs whilst fully respecting EU law, without derogating from the existing legislative framework The Circular economy offers an opportunity to reinvent our economy, making it more sustainable and competitive. This will bring benefits for European businesses, industries, and citizens alike. With this new plan to make Europe’s economy more sustainable and more competitive, the Commission is delivering ambitious measures to cut resource use, reduce waste and boost recycling. We will preserve resources that are increasingly scarce and subject to mounting environmental pressure or volatile prices, and reduce costs for European industries. We are supporting a new generation of European businesses which make and export more efficient and sustainable products and services around the globe, and create innovative, more resource efficient ways to provide services or products to customers. We are helping to create jobs for European citizens and opportunities for social integration and cohesion. We could create more than 170,000 direct jobs by 2035 through the measures on waste management alone, We are providing consumers with more durable, sustainable and less toxic products that save money and their increase quality of life. We will continue to deliver ambitious energy efficiency for products, which by 2020 will bring savings of 465 EUR per year per household on their energy bills We will contribute to preserving the environment and our planet, bring a substantial cut in carbon emissions and preserve threatened resources. We are taking measures which can reduce greenhouse gas emissions by more than 500 million tons between 2015 and 2035 We are increasing the competitiveness of key industry sectors including manufacturing, waste management and recycling, as well as reducing the dependency of the EU on raw material imports. Through long terms targets on waste and landfill, backed by clear supportive measures, we create incentives for action by Member States and investment certainty for businesses.

Innovation Deals How? Helping innovators and national, regional or local authorities to look at flexibility in the EU legislation or to implement specific legal provisions where appropriate by providing in-depth analysis Facilitating national and local institutions to better relating in full transparency with EU innovators The Circular economy offers an opportunity to reinvent our economy, making it more sustainable and competitive. This will bring benefits for European businesses, industries, and citizens alike. With this new plan to make Europe’s economy more sustainable and more competitive, the Commission is delivering ambitious measures to cut resource use, reduce waste and boost recycling. We will preserve resources that are increasingly scarce and subject to mounting environmental pressure or volatile prices, and reduce costs for European industries. We are supporting a new generation of European businesses which make and export more efficient and sustainable products and services around the globe, and create innovative, more resource efficient ways to provide services or products to customers. We are helping to create jobs for European citizens and opportunities for social integration and cohesion. We could create more than 170,000 direct jobs by 2035 through the measures on waste management alone, We are providing consumers with more durable, sustainable and less toxic products that save money and their increase quality of life. We will continue to deliver ambitious energy efficiency for products, which by 2020 will bring savings of 465 EUR per year per household on their energy bills We will contribute to preserving the environment and our planet, bring a substantial cut in carbon emissions and preserve threatened resources. We are taking measures which can reduce greenhouse gas emissions by more than 500 million tons between 2015 and 2035 We are increasing the competitiveness of key industry sectors including manufacturing, waste management and recycling, as well as reducing the dependency of the EU on raw material imports. Through long terms targets on waste and landfill, backed by clear supportive measures, we create incentives for action by Member States and investment certainty for businesses.

Within the scope of Circular Economy Innovation Deals Key features Call for a bottom-up approach Increase cooperation among EU, national and local institutions Facilitator role of EC services Complement the Better Regulation Agenda No funding provided The Circular economy offers an opportunity to reinvent our economy, making it more sustainable and competitive. This will bring benefits for European businesses, industries, and citizens alike. With this new plan to make Europe’s economy more sustainable and more competitive, the Commission is delivering ambitious measures to cut resource use, reduce waste and boost recycling. We will preserve resources that are increasingly scarce and subject to mounting environmental pressure or volatile prices, and reduce costs for European industries. We are supporting a new generation of European businesses which make and export more efficient and sustainable products and services around the globe, and create innovative, more resource efficient ways to provide services or products to customers. We are helping to create jobs for European citizens and opportunities for social integration and cohesion. We could create more than 170,000 direct jobs by 2035 through the measures on waste management alone, We are providing consumers with more durable, sustainable and less toxic products that save money and their increase quality of life. We will continue to deliver ambitious energy efficiency for products, which by 2020 will bring savings of 465 EUR per year per household on their energy bills We will contribute to preserving the environment and our planet, bring a substantial cut in carbon emissions and preserve threatened resources. We are taking measures which can reduce greenhouse gas emissions by more than 500 million tons between 2015 and 2035 We are increasing the competitiveness of key industry sectors including manufacturing, waste management and recycling, as well as reducing the dependency of the EU on raw material imports. Through long terms targets on waste and landfill, backed by clear supportive measures, we create incentives for action by Member States and investment certainty for businesses. Within the scope of Circular Economy

Innovation Deals Main benefits In-depth analysis related to the EU legislative framework and a clearer view on the existing flexibility More efficient and effective cooperation between innovators and institutions and increased impact in the demonstration of the innovative solutions The Circular economy offers an opportunity to reinvent our economy, making it more sustainable and competitive. This will bring benefits for European businesses, industries, and citizens alike. With this new plan to make Europe’s economy more sustainable and more competitive, the Commission is delivering ambitious measures to cut resource use, reduce waste and boost recycling. We will preserve resources that are increasingly scarce and subject to mounting environmental pressure or volatile prices, and reduce costs for European industries. We are supporting a new generation of European businesses which make and export more efficient and sustainable products and services around the globe, and create innovative, more resource efficient ways to provide services or products to customers. We are helping to create jobs for European citizens and opportunities for social integration and cohesion. We could create more than 170,000 direct jobs by 2035 through the measures on waste management alone, We are providing consumers with more durable, sustainable and less toxic products that save money and their increase quality of life. We will continue to deliver ambitious energy efficiency for products, which by 2020 will bring savings of 465 EUR per year per household on their energy bills We will contribute to preserving the environment and our planet, bring a substantial cut in carbon emissions and preserve threatened resources. We are taking measures which can reduce greenhouse gas emissions by more than 500 million tons between 2015 and 2035 We are increasing the competitiveness of key industry sectors including manufacturing, waste management and recycling, as well as reducing the dependency of the EU on raw material imports. Through long terms targets on waste and landfill, backed by clear supportive measures, we create incentives for action by Member States and investment certainty for businesses.

Innovation Deals Concrete outcomes Lack of clarity in legislation Inconsistencies in legislation or policy objectives Lack or conflicting standards/norms/guidelines EU legislation not fit for purpose (might feed REFIT) Improve communication channels Improve awareness of specific elements (e.g. legal, technical, regional or local…) LEGISLATIVE BARRIERS IMPROVED CLARITY The Circular economy offers an opportunity to reinvent our economy, making it more sustainable and competitive. This will bring benefits for European businesses, industries, and citizens alike. With this new plan to make Europe’s economy more sustainable and more competitive, the Commission is delivering ambitious measures to cut resource use, reduce waste and boost recycling. We will preserve resources that are increasingly scarce and subject to mounting environmental pressure or volatile prices, and reduce costs for European industries. We are supporting a new generation of European businesses which make and export more efficient and sustainable products and services around the globe, and create innovative, more resource efficient ways to provide services or products to customers. We are helping to create jobs for European citizens and opportunities for social integration and cohesion. We could create more than 170,000 direct jobs by 2035 through the measures on waste management alone, We are providing consumers with more durable, sustainable and less toxic products that save money and their increase quality of life. We will continue to deliver ambitious energy efficiency for products, which by 2020 will bring savings of 465 EUR per year per household on their energy bills We will contribute to preserving the environment and our planet, bring a substantial cut in carbon emissions and preserve threatened resources. We are taking measures which can reduce greenhouse gas emissions by more than 500 million tons between 2015 and 2035 We are increasing the competitiveness of key industry sectors including manufacturing, waste management and recycling, as well as reducing the dependency of the EU on raw material imports. Through long terms targets on waste and landfill, backed by clear supportive measures, we create incentives for action by Member States and investment certainty for businesses. OTHER BARRIERS ENHANCED COOPERATION

Thank you for your attention! Vincenzo Gente vincenzo.gente@ec.europa.eu