1. 1 A Public Private cooperation for bio-based products Francesco Degli Innocenti Novamont fdi@novamont.com

2. 2 Bio-based products are of high societal and economic interest and fit into the EU strategies Use of renewable resources Support to rural development Less dependency on limited and increasingly expensive fossil resources The potential to reduce greenhouse gas emissions (carbon neutral / low carbon impact) The potential for sustainable industrial production Increased industrial competitiveness through innovative eco-efficient bio-based products Often biodegradability or compostability Often low toxicity

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4. 4 Bio-based products already exists Bio-based Chemicals (building blocks) Bio-based plastics for durable applications Bio-degradable bio-based products for waste management, tableware, and bio- mulch for agriculture Bio-lubricants Bio-composites

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6. 6 However Renewable raw materials are still only used in certain product categories and mostly manufactured in small volumes. and therefore Early markets of sufficient scale are needed to justify investments, bring down unit production costs, generate higher returns on investment, and reduce risks for investors and entrepreneurs.

7. 7 The recommendations developed by the Ad-hoc Advisory Group for Bio-based Products in the framework of the ECs LMI Legislation promoting market development Encourage GPP for bio-based products Standards, labels and certification Financing and funding of research

8. 8 The industrys point of view industry estimates an increase for specific market segments if appropriate measures are taken, as proposed in the recommendations for the Lead Market initiative. The PPIP

9. 9 Next steps: Market experts of the sector (ERRMA) have started a quantitative study. 1.Analysis of current situation (for promising products groups) 2.Analysis of bottlenecks 3.Analysis of further R&D needed in the sector 4.Actions to develop a favourable landscape for bio-based products 5.How to pool available resources 6.Forecast of market situation in 10 years (with or without supporting policy)

10. 10 The approach 1.Only product groups which are already commercially available have been considered 2.The use of renewable resources leads to advantages in either technical or environmental performance 3.The growth of the sector is expected to be long-lasting and fully supported by the market. 4.Products whose only added-value is renewability and that do not meet their technical specifications or are not appropriately priced will not establish themselves on the market in the long term. 5.Concentrated on Bio-plastics, Bio-lubricants, Bio- composites and Bio-based building blocks

11. 11 SectorEU Market 2010 (t) EU Market 2020 (t) no policy EU Market 2020 (t) with a specific European policy Bio-plastics260,000769,0002,555,000 Bio-lubricants137,000277,000420,000 Bio-compositesnd315,000830,000 Bio-blocks1,727,5006,540,000

12. 12 10x growth in 2020 if supportive measures come into force An example

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14. 14 In Conclusion. The LMI recommendation must be adopted urgently

15. 15 Biomass availability Biomasses for industrial (non energetic) uses must be available in sufficient and guaranteed quality and competitive prices. Policies must support this condition. Cooperation between farmers and industry should be strengthened e.g. with specific agreements. Crops for industrial uses should be included in direct support schemes for farmers e.g. in the EU and national harmonised rural development plans. This would reduce the current disparity between energetic and industrial use of biomasses

16. 16 R&D: Efforts must be intensified to re-focus R&D and innovation policy on the challenge facing our society in agreement with the Commission's research policy for a "Knowledge- based Bio- Economy" (KBBE) In this context it is necessary that applied research must be supported, which will lead to commercialization of bio-based products by learning from demonstration plants and pilot projects.

17. 17 Communication In order to raise and promote awareness of the benefits of bio-based products, a broad communication initiative is needed to inform involved industries, consumers and the public.

18. 18 Standardisation Important instruments in this area are standardisation, certification and labelling of bio-based products, which have already started for some bio-based product groups and are to be widened to other promising bio-based product groups.

19. 19 Industrys role Industry is ready to collaborate to enhance market demand for sustainable bio-based products, in order to exploit the positive environmental (soil, water and emissions), economic (strengthening international competitiveness of bio-based products), and social (in terms of rural development) characteristics of bio-based products.

20. 20 A Public Private cooperation for bio-based products is needed

21. 21 Many thanks for your attention ADEME, ADCV, NNFCC, FNR European Congress Plant- based Chemistry for 2020 Paris, 5-7 September 2011