Maud SKÄRINGER European Commission Directorate-General for Regional and Urban Policy

1. Cohesion Policy support for Sustainable Energy 2014-2020New Cohesion Policy – How to use it effectively to boost energy research and innovation in regions?Open Days workshop: "Energy Research and Innovation – Source of Benefits for your Region"Brussels, 8 October 2013 Maud SKÄRINGER European Commission Directorate-General for Regional and Urban Policy

2. Cohesion Policy 2014-2020 • Investment policy supporting Europe 2020: growth, jobs, quality of life and sustainable development • European Regional Development Fund (ERDF) • European Social Fund (ESF) • Cohesion Fund (CF) Total: Around € 322 billion of EU funds, concentrated in less developed regions The map shows eligibility simulation for the ERDF and the ESF. Approximate overall amount and classification of regions based on political agreement on EU Multiannual Financial Framework reached between EP and Council June 2013.

3. Low-carbon economy – Energy efficiency (EE) and renewable energy (RES) SMEs competitiveness Concentration of ERDF proposed for 2014-2020 Research and Innovation Developed regions & transition regions Less developed regions No more ceiling for investing in EE in housing (currently maximum 4% of ERDF)

4. Investments in Sustainable Energy in 2014-2020 Cohesion Policy "Supporting the shift towards a low-carbon economy in all sectors" – 5 investment priorities proposed by the Commission for ERDF and CF: • Promoting the production and distribution of RES • Promoting EE and RES use in SMEs • Supporting EE and RES use in public infrastructures and in the housing sector • Developing smart distribution systems at low voltage levels ("smart grids") • Promoting low-carbon strategies for urban areas

5. Investments in Sustainable Energy in 2014-2020 Cohesion Policy "Supporting the shift towards a low-carbon economy in all sectors" – Discussions in the Trilogueon fine-tuning of wording and possible further investment priorities: • Separate investment priorities on research and innovation in low-carbon technologies and on high-efficiency co-generation of heat and power • Support also to large enterprises in this area • Low-carbon strategies for all types of territories, and inclusion of urban mobility Exact levelsforERDFconcentration also discussed!

6. Indicative actions of high EU added value • Innovative renewable energy technologies, in particular technologies mentioned in the SET-Plan and in the Energy Roadmap 2050, along with 2nd and 3rd generation biofuels • Supporting marine-based renewable energy production • Investment in the wider use of Energy Performance Contracting in the public buildings and housing sectors • Energy efficiency and renewable heating and cooling in public buildings, in particular demonstration of zero-emission and positive-energy buildings, and deep renovation of existing buildings to beyond cost-optimal levels • EE and RES in SMEs, including information campaigns • Integratedlow-carbonstrategies and sustaianbleenergy action plans for urban areas, including public lightingsystems and smart grids

7. Implementation Principles – Energy • Mainly private sector investment. Ensure that public funding complements private investment, leveraging it and not crowding it out • EE: Consider creating value for energy savings through market mechanisms before public funding (energy saving obligations, energy service companies…) • Financial instruments to be used where potential for private revenue or cost savings is large • For physical investment, grants to be used primarily: • to address market failures • to support innovative technologies • to support investments beyond cost-optimal EE performance: ensure energy savings and GHG emission reductions above "business as usual"!

8. Links to Research and Innovation Smart Specialisation Strategies • Future Cohesion Policy: Ex-ante conditionality for ERDF investments in RTDI to have a national or regional Smart Specialisation Strategy ("RIS3") • In assessing their position and assets in the context of the development and implementation of their strategies, MS and regions are invited to make full use of the knowledge developed in the framework of the SET-Plan and the Intelligent Energy Europe Programme. • A certain number of regions can be expected to decide that they will focus Cohesion Policy resources for RTDI in the area of RES or EE, in complementarity with Horizon 2020.

9. Guide issued in Nov. 2012 • How to integrate eco-innovation, RES, EE… in the Smart Specialisation Strategies ("RIS3") • Why it makes sense • What authorities and stakeholders can do • Complementarities with other EU initiatives and programmes, including FP7 / Horizon 2020 • Collection of good practices • http://s3platform.jrc.ec.europa.eu/guides

10. Types of projects RES 2007-2013 – Examples Research and Technological Development e.g. DK, DE, AT Pilot projects and innovation e.g. LU, NL, PT Cluster development e.g. DE, FR, AT, PL, FI Use of renewables by SMEs e.g. DE, IT, AT, PL, SK Heating, cooling and cogeneration e.g. BE, EE, ES, CY, LV, LT, HU, MT, SI Awareness raising e.g. BE, CY Electricity generation e.g. BE, IT, LU, PL, RO, SK, FI, SE Source: Expert Evaluation Network reports on RES and EE in housing: http://ec.europa.eu/regional_policy/information/evaluations/index_en.cfm#1

11. Example: Biomass, solar and wind – Burgenland, AT • Regional development and innovation strategy in RES over more than 15 years • Initial situation: economic downturn, depopulation, unemployment • Objective to re-develop the region based on local characteristics and assets • Reach energy self-sufficiency • Generate regional growth, employment and tax revenues 11

12. Example: Biomass, solar and wind – Burgenland, AT • Strategic use of Cohesion Policy funding in biomass, solar and wind energy as well as into related research and training • Great success in terms of jobs, regional development and energy security Extensive case study available at: http://ec.europa.eu/regional_policy/atlas2007/austria/at11_en.htm 12

13. Example: Smart Specialisation in RES/EE – Alsace, FR 1998: Design of a regional strategy for RES and EE 2000: Integration into regional development contract with State 2003-05: Launch of ‘Energivie’ and use of the ERDF ‘Regional Programme of Innovative Actions 2000-06’ to boost the strategy (€ 1.9 million). Initial focus only on RES. 2005: Re-focus towards EE in buildings 2007-13: 2nd phase of the strategy 2008: Winner of RegioStars Awards 2009: Application to be selected as a 'Pôle de Competitivité' in FR 2010: Label 'Pôle de compétitivité' 13

14. Example: Smart specialisation – Green Building Clusterof Lower Austria • Connects construction and building professionals with researchers to address challenges such as climate change and enables innovation through cooperation. • Involves about 200 members, of which 80% SMEs. Other members include larger companies, research and education institutions and associations. Companies active in all areas of energy efficient and sustainable building, refurbishment, energy management and energy technologies. • RegioStars awards finalist 2011 • ERDF co-financing: € 937.370 • http://www.ecoplus.at/en/ecoplus/cluster/green-building

15. More information Cohesion Policy Project Examples: http://ec.europa.eu/regional_policy/projects/stories/index_en.cfm Policy Learning Database: http://ec.europa.eu/regional_policy/cooperation/interregional/ecochange/studies_en.cfm?nmenu=5 Expert Evaluation Network reports on RES and EE in housing: http://ec.europa.eu/regional_policy/information/evaluations/index_en.cfm#1 JESSICA horizontal (thematic) studies: http://ec.europa.eu/regional_policy/thefunds/instruments/jessica_horizontal_en.cfm REGIO case study “Wave Hub” project, UK: http://ec.europa.eu/regional_policy/projects/practices/details.cfm?pay=UK&the=68&sto=2458&region=ALL&lan=7&obj=ALL&per=ALL&defL=EN REGIO case study “ERDF – Promotion of renewable energy sources in Burgenland”, AT: http://ec.europa.eu/regional_policy/atlas2007/austria/at11_en.htm COCOF technical meeting on sustainable energy March 2011: http://ec.europa.eu/regional_policy/conferences/energy2011/index_en.cfm Regions for Economic Change Conference May 2010 Energy efficiency workshop (2A): http://ec.europa.eu/regional_policy/conferences/sustainable-growth/programme_en.cfm?nmenu=4 Practical Guide to EU funding opportunities for Research and Innovation: http://cordis.europa.eu/eu-funding-guide/home_en.html Smart specialisation platform: http://s3platform.jrc.ec.europa.eu/home Intelligent Energy Europe Projects: http://eaci-projects.eu/iee/page/Page.jsp ICT-specific guide on energy efficiency: http://ec.europa.eu/information_society/activities/sustainable_growth/ict4ee_wiki/index_en.htm

16. More information on financial instruments • Commission Staff Working Document - Financial Instruments in Cohesion Policyhttp://ec.europa.eu/regional_policy/sources/docoffic/official/communic/financial/financial_instruments_2012_en.pdf • Factsheet: Financial Instruments in Cohesion Policy 2014-2020http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/financial_instruments_en.pdf • Panorama Autumn 2012: Using financial instruments to leverage support for regional policy http://ec.europa.eu/regional_policy/sources/docgener/panorama/pdf/mag43/mag43_en.pdf • Financial Instruments: A Stock-taking Exercise in Preparation for the 2014-2020 Programming Periodhttp://ec.europa.eu/regional_policy/thefunds/instruments/doc/fls_stocktaking_final.pdf