Presentation by Peter Sweatman , Author and CEO of Climate Strategy on 18 th June 2019.

2. Presentationby Peter Sweatman, Author and CEO of Climate Strategy on 18th June 2019.

3. Building upon ECF EU CTI 2050 Roadmap model and Net-Zero 2050 Report… ECF launched EU CTI 2050 Roadmap and Interactive tool in September 2018: • Body Level One • Body Level Two • Body Level Three

4. 50 experts were engaged to look at the 25% “Additional Innovation” flagged in the CTI Roadmap 2050 modelling…

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6. Ranking of Innovation Needs to deliver Net-Zero emissions in Europe by 2050

7. Not all Net-zero 2050 Innovation is Technology, 60% is Product, Business Model and Societal Innovation • Aggregate Innovation Type Needed • For Net-zero 2050

8. Power: Smart grids, flexibility and storage innovation leads Innovation Needs to Decarbonise the Power Sector and their Correlation with an EU Competitive Advantage • Except in solar, experts see a reasonable correlation between the innovation opportunity and the potential to build, or build upon, a European competitive advantage

9. Transport: Innovation for Electrification and Mobility as a Service Innovation Needs to Decarbonise the Transport Sector & their Correlation with an EU Competitive Advantage • The potential for EU competitive advantage in transport is less well correlated with innovation need than in power or in buildings • Demand side action combined with modal & “mobility as a service” models are interesting opportunities for Europe

10. Buildings: Business Model and Financial Innovation Challenge Innovation Needs to Decarbonise the Buildings Sector and their Correlation with an EU Competitive Advantage • Decarbonising heat for residential and service buildings together with energy efficiency upgrades are seen by experts as the leading areas for R&I investment for the full decarbonisation of Europe’s buildings

11. Industry: Innovation to deliver “Circularity First” Innovation Needs to Decarbonise Industry & their Correlation with an EU Competitive Advantage • Experts noticed a very strong need for innovation across the net-zero modelled strategies for industrial decarbonisation • Especially in process efficiency, decarbonising materials and increased recycling rates.

12. Agriculture, Forest, Land-use & Diet (AFOLU): Connecting Health and Climate Innovation Needs to Decarbonise AFOLU & their Correlation with an EU Competitive Advantage • In the survey, experts articulated three main levers for which innovation is deemed critical to enable a net-zero emissions economy by 2050: • Reducing meat consumption • Reduced and reused waste • The decarbonisation of food production

13. Five Sector-level Missions combine to Ambitious EU-level Net-Zero Emissions Economy Mission by 2050 ENERGY: Fully and Affordably Decarbonise EU Electricity 100% by 2040 TRANSPORT: Decarbonise EU passenger Transport by 2040, and EU freight by 2050 BUILDINGS: Fully decarbonise EU Buildings by 2050 INDUSTRY: Reinvent European Industry based upon the “Circularity First” Principle AFOLU: Healthy Food for a Healthy EU Climate

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15. EU Innovation funding mix is balanced between private and public instruments, just 26% grants… Aggregate Funding Instruments Needed For Net-zero 2050

16. EU-level programmes can make a marked impact on climate-related R&I investments EU Programmes for Low-Carbon Innovation

17. Climate relevant funding in selected EU R&I programmes (€ billions) EU-level funding, Targeting the crowding-in of other public and private sector resources • EU-level funding can also explicitly target the crowding-in of other public and private sector resources through: • Instrument choice • Institutional collaboration • European Partnerships • Building climate-impact pathways for R&I • Mission-oriented sector calls

18. Aggregate climate-related R&I needs to increase by one third to enable Net-Zero emissions by 2050 Climate relevant R&I Investments (€ billions)

19. Conclusions ////////////////////////////////////////////

20. Five high-level conclusions from the expert contributions to this report: Climate-related R&I investment is key to deliver net zero emissions Europe can build competitive advantages in many of the decarbonisation pathways Innovation is required at many levels, not just in the production of new technologies Public and Private R&I investments need to scale-up together Five “sector decarbonisation missions”

21. EU-level Policy Recommendations Horizon Europe’s climate-related R&I allocation should increase from at least 35% to up to 50% The climate element and impacts of R&I investments need to be more transparently and better tracked in Horizon Europe, but also better disclosed by the private sector Net-Zero emissions in Europe by 2050 requires concerted collaboration on climate-related R&I collaboration between the public and private sectors

22. Thank you ///////////////////////////////////////////////// Report available at: www.europeanclimate.org/net-zero-2050 And www.climatestrategy.com – comment @ClimateSt