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Session 1- Future European Funds Context for new funding landscape Ingrid Green

EU Funding 2014-2020 Ingrid Green (ESEC) and Francesca Giannini (Scotland Europa) 27 November 2013, FRIC. Session 1- Future European Funds Context for new funding landscape Ingrid Green. EU Budget 2014-2020: €959,988 million (1.00% of EU GNI) (June 2013 Council Agreement).

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Session 1- Future European Funds Context for new funding landscape Ingrid Green

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  1. EU Funding 2014-2020Ingrid Green (ESEC) and Francesca Giannini (Scotland Europa)27 November 2013, FRIC

  2. Session 1- Future European FundsContext for new funding landscapeIngrid Green

  3. EU Budget 2014-2020: €959,988 million (1.00% of EU GNI)(June 2013 Council Agreement)

  4. New EU Funding Landscape 2014-2020

  5. Future EU regional funds: Structural & Investment FundsIngrid Green

  6. Future European Structural & Investment Funds (ERDF, ESF, EAFRD, EMFF)

  7. Scottish allocation of EU Budget * not accounting for voluntary modulation and co-financing

  8. Draft Strategic Interventions

  9. EAFRD ‘Pillar II’ Rural Development Schemes in Scotland 2014-2020 • Agri environmental climate scheme • New entrants to Farming (under 40s) • Knowledge transfer and innovation • (Better targeted) Less Favoured Areas Scheme (€250 m) • Forestry Investment Grant • Cooperative Action Fund • Advisory Scheme (currently out to tender) • Business Support • Food Processing and Marketing and Co-Operation Scheme (€70m) • Micro- Enterprise (if budget allows) • Digital (if budget allows) • LEADER (5% of budget) • Majority of budget is pre-committed to Rural Development Schemes and only small aspects expected to fit into ESIF Strategic Interventions

  10. UK EMFF Programme 2014-2020 • Priorities: • Promoting sustainable and resource efficient fisheries • Fisheries • Aquaculture • Fostering innovative, competitive and knowledge based fisheries and aquaculture including related • Fisheries • Aquaculture • Fostering the implementation of the CFP • Marine Scotland Science • Increasing employment and territorial cohesion • Promotion of economic growth, social inclusion, creation of jobs and supporting labour mobility in coastal and inland communities depending on fishing and aquaculture; • Diversification of fisheries activities into other sectors of maritime economy and growth of maritime economy, including mitigation of climate change. • Fisheries Communities Axis to be delivered via LEADER delivery structures – where possible

  11. Future EU regional funds: Territorial Cooperation ProgrammesIngrid Green

  12. Territorial Cooperation Programmes • Roughly same geographies & budgets • North Sea circa VB €130m • North West Europe VB circa €335m • Interregional VC circa €300m • Projects typically focus on regional innovation, sustainable communities, sustainable transport, sustainable energy and environmental initiatives. • Partnerships across more than one member state (usually with a minimum of 3 partners). • Public consultations due in next year • First calls not expected till 2015 • The average financial receipt to a Scottish partnercurrentlyis €331,790

  13. North Sea Programme 2014-2020 • Latest Draft Priorities: • Thinking growth • New knowledge partnerships for long-term cooperation on product and services • To enhance regional innovation support capacities to deliver smart specialisation strategies • Supporting the public sector to generate innovation demand and solutions for improving public service delivery • Renewable North Sea Region • New products, services and process that reduce carbon emissions • New methods for long-term sustainable management of eco-systems • New products, services and process that accelerate greening of the economy • Green Mobility • Supporting transport interoperability and multi-modal connections • Promote sustainable ‘first and last mile’ travel • Ensure wider take up of alternative fuels and fuel saving technologies

  14. North West Europe Programme 2014-2020 • Latest Draft Priorities: • Innovation • Enhanced innovation capacity through international cooperation in NWE • Low carbon • Improved energy performance through international cooperation on the implementation of energy strategies in NWE • Reduced GHG emissions through international cooperation on the uptake of low-carbon technologies, products, processes, and services in high consuming territories and sectors • Reduced GHG emissions through international cooperation on low carbon solutions in transnational transport systems • Resource Efficiency • Optimised (re)use of materials and natural resources through international cooperation in the NWE

  15. INTERREG Programme 2014-2020 Latest Draft Priorities: Strengthening research, technological development and innovation Enhancing the competitiveness of SMEs Supporting the shift towards a low-carbon economy in all sectors Protecting the environment and promoting resource efficiency All EU area eligible

  16. Fife’s Current use of Transnational ProgrammesIngrid Green

  17. Nature of local authority transnational activity 2007-2012

  18. Fife Transnational activity 2007-2012 • Benchmarked against ESEC members Fife Council has had a reasonable level of activity but aside from Aberdeen City Council ESEC members could generally do with upping the ante on transnational funds • All €514,521 comes from Education and Employability sections only.

  19. Fife Council Transnational activity 2007-2012 • Europe at Work - Managing Cultural Diversity in the European Workplace, Grundtvig • Training Teachers and Instructors to Teach in Prison/Detention centres, Grundtvig • Violence and the protection of children, Transversal • Mechanisms to enhance adults to continue education, Transversal • Help and support for every child, Transversal • How leadership can influence the learning outcome for students, Transversal • Sweden 2011, Leonardo • Comenius: Auchmuty High School x 2; Balcurvie Primary School; Balwearie High School x 3; Bell Baxter High School; Buckhaven High School; Burntisland Primary; School x 3; Dalgety Bay Primary School; Donibristle Primary School; Dunfermline High School; Fife Council (Regio); Inverkeithing High School; McLean Primary School; Newburgh Primary School; Pitcoudie Primary School; Queen Anne High School; Springfield Primary School; Star Primary School; Starley Hall School; Strathmiglo Primary School x 2

  20. Future Transnational EU ProgrammesFrancesca Giannini

  21. Horizon 2020 - Overview The EU’s new Research and Innovation framework for the period 2014-2020 Budget: €72billion over 7 years A single programme bringing together three separate programmes/initiatives* Integration: coupling research to innovation – from research to retail, all forms of innovation Focus on societal challenges facing EU society, e.g. health, clean energy and transport Simplified access for all companies, universities, institutes in all EU countries and beyond *The 7th Research Framework Programme (FP7),innovation aspects of Competitiveness and Innovation Framework Programme (CIP),EU contribution to the European Institute of Innovation and Technology (EIT)

  22. Horizon 2020 - Key aspects Research, innovation and market transformation Collaborative in majority of cases Cost sharing (no profit) Commission defined priorities in majority of cases Innovative at European level European impact: Horizon 2020 will stimulate Europe's economic growth, generating 0.5 % of extra GDP by 2020 and 1 % by 2030; enhance EU competitiveness (increasing export by just under 1%) and employment by 0.2% Multidisciplinary projects under the Societal Challenges *The 7th Research Framework Programme (FP7),innovation aspects of Competitiveness and Innovation Framework Programme (CIP),EU contribution to the European Institute of Innovation and Technology (EIT)

  23. Horizon 2020 - Structure Excellent Science IndustrialLeadership Societal Challenges Health & Wellbeing European Research Council (ERC) Leadership in Enabling & Industrial Technologies (LEIT) ICT, KET’s, Space Food Security Marie Sklodowska Curie Actions (MSCA) Transport Access to Risk Finance Secure, Clean and Efficient Energy Future &Emerging Technologies (FET) Innovation in SMEs Climate Action Inclusive & Reflective Societies Research Infrastructure Secure Societies 12 Focus Areas Spreading excellence & widening participation Science with and for Society EIT JRC

  24. Horizon 2020 - Focus Areas PERSONALISING HEALTH AND CARE SUSTAINABILITY FOOD SECURITY BLUE GROWTH: UNLOCKING THE POTENTIAL OF THE OCEANS SMART CITIES AND COMMUNITIES COMPETITIVE LOW-CARBON ENERGY ENERGY EFFICIENCY MOBILITY FOR GROWTH WASTE: A RESOURCE TO RECYCLE, REUSE AND RECOVER RAW MATERIALS WATER INNOVATION: BOOSTING ITS VALUE FOR EUROPE OVERCOMING THE CRISIS: NEW IDEAS, STRATEGIES AND GOVERNANCE STRUCTURES FOR EUROPE DISASTER-RESILIENCE: SAFEGUARDING AND SECURING SOCIETY, INCLUDING ADAPTING TO CLIMATE CHANGE DIGITAL SECURITY

  25. Horizon 2020 - Simplification Single set of simpler and more coherent participation rules New balance between trust and control Reduction of average time to grant by 100 days (current average of around 350 days under FP7) Two basic funding rates: 100% and 70% of total eligible costs Single flat rate for overheads: 25% Two Year Format: calls published for 2 years

  26. Horizon 2020 - Funding Actions Research and Innovation Actions (RIA): Basic and applied research, technology development and integration, testing and validation on a small scale prototype or simulated environment 3 independent legal entities from different Member States or Associated Countries Funding rate: maximum 100% Innovation Actions (IA): Demonstration or pilot to validate technical and economic viability of a new or improved technology, product, process, service or solution Also ‘market replication ’i.e. support for the first application or deployment in the market of an already demonstrated innovation 3 independent legal entities from different Member States or Associated Countries Funding rate: maximum 70% (except for non-profit legal entities where a maximum of 100%applies)

  27. Horizon 2020 - Funding Actions Coordination and Support Actions (CSA): Improving market conditions and aiding market transformation e.g. standardisation, fostering dialogue, capacity building (similar to FP7 CSA) 1 legal entity* from different Member States or Associated Countries Funding rate: maximum 100% Other Funding Schemes: Inducement Prizes; ERA-NET Co-Fund; PCP,PPI Co-Fund; *However EU collaboration may be favoured for some topics

  28. Horizon 2020 - Funding Actions Pre-Commercial Procurement (PCP) Co-fund actionswill enable the public sector, as a technology buyer, to encourage research, development and validation of breakthrough solutions in areas of public interest. Public Procurement of Innovative Solutions (PPI) Co-fund actionswill reinforce early deployment of innovative solutions that address challenges of public interest that are similar across countries and are therefore proposed to be procured jointly (trans-national buyer groups of procurers share the risks of acting as early adopters of innovative solutions) Consortia of a minimum of three independent legal entities which are public procurers from three different Member States or associated countries Reimbursement rates: PCP Co-fund: 70% PPI Co-fund: 20%

  29. Horizon 2020 - Funding Actions The SME Instrument Bottom up within the frame of the societal challenges and enabling technologies (SME selects project topics across all Horizon 2020 challenges) Support level for SMEs up to 70% Single company projects (1 for profit SME) The Small to Medium Sized businesses decide: What the project will do How the project is organised Will be able to outsource R&D Phase 1: Concept and feasibility assessment - Lump sum: around €50k ~ 6 months Phase 2:R&D, demonstration, market replication - Cost reimbursement: 1 to 3 M€ EC funding 12 to 24 months Phase 3: Commercialisation - No direct funding: Indirect support

  30. Strategic Programme for 2014-2016 Work Programmes Proposed Work Programme Cycle:

  31. Further Information on Horizon 2020 Scotland General Information: Horizon2020@scotent.co.uk European Commission: Participant Portal: http://ec.europa.eu/research/participants/portal Provisional Work Programmes: http://ec.europa.eu/research/horizon2020/index_en.cfm?pg=h2020-documents

  32. COSME (Competiveness of SMES) • Continuation of the ‘non-innovation’ aspects of CIP • Tool to address the following problems: • Lack of entrepreneurial culture • Difficulties for SMEs in accessing finance • Too few SMEs export outside national markets or beyond the EU • Administrative difficulties regarding cross-border trade • Budget 2014-2020: €2.3 billion • Target audience: SMEs, entrepreneurs, business support organisations, regional and national administrations • Funding: Policy support and horizontal actions • Funding: Financial Instruments managed by the EIF • Equity Facility for Growth, will provide venture capital and mezzanine finance • Loan Guarantee Facility, will provide counter‐guarantees, direct guarantees and other risk sharing arrangements, and loans up to €150,000, available to all SMEs

  33. Creative Europe • Cross-border cooperation projects between cultural and creative organisations within the EU and associated countries • Offers funding for: • Development of European films, TV programmes and games • Distribution and promotion of European films, festivals, cinema networks • Training for cultural and creative professionals/artists • Literary translations • Cross-border cooperation • Foreseen budget: €1.4 billion (9% increase) • From 2016 Creative Europe will also include a €121 million financial guarantee instrument to help the culture and creative sectors get better access to finance.

  34. Creative Europe • Three sub-programmes • Culture: • Transnational Cooperation for cultural workers • Networks & Platforms • Literature (translation for wider audiences) • Media: • Training and development support for audio-visual workers • Distribution • Audience Development (e.g. cross border film literacy initiatives) & Film Festivals/Screening • Cross-Sectoral: • €121m for a Guarantee Fund to facilitate loans to cultural and creative enterprises and organisations • Support for piloting projects bridging different cultural and creative sectors • Prizes; European Capital of Culture; & European Heritage Label

  35. Erasmus for All • EU’s Education Programme (replacing the Lifelong Learning Programme) • Foreseen budget: €19 billion • Three priorities/Key Actions • Actions for youth and sport • Knowledge & Sector Skills Alliances • Erasmus Masters

  36. Connecting Europe Facility • Grants managed by European Commission • EU 2020 Project Bonds managed by the EIB (one Euro should lever between 5 and 10 Euro of private investment) • €9.1 billion Energy Infrastructure • €9.2 billion Broadband Infrastructure • €31.7 billion Transport Infrastructure - €21.7 billion EU wide, plus €10 billion from Cohesion Fund (poorest regions only) Energy • 13 projects of common interest within 10 year network development plan – Northern Seas Offshore Grid • Electricity transmission lines, gas, CO2 and oil pipelines, Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG) reception facilities and electricity and gas storage • Demonstrate cross-border benefits ICT • Digital bridges to facilitate the mobility of citizens and businesses working across borders; and pan-European digital services. • Market Economy principle –attractive route for ensuring state aid compliant. • EIB’s AAA rating may mean lower interest rates where investment climate is particularly harsh. Large corporations may be able to borrow more effectively. Transport • Greater emphasis on interconnectivity; interoperability; innovative technological developments • Grants may amount to up to 50% of the total project implementation costs, depending on the type of project • Pre-identified a list of projects in 10 corridors (80%-85% of the total €31.7 billion CEF financial support) including Edin-Glas rail

  37. New ways of working Ingrid Green &Francesca Giannini

  38. Delivery & Governance ESIF • 3 Strategic Delivery Partnerships • Each having limited number of “strategic interventions” • The lead partner for each interventions is responsible for providing the required match funding and taking on the compliance obligations • The SDP can commission/procure “Delivery Agents” where gaps identified. Likely that SDP co-funders will choose to delivery large aspects “in-house” using their own provided match-funding • Local partnerships galvanised around Community Planning Partnerships – especially for Employability • Thematic partnerships likely to be led by national agencies e.g. SNH for environmental infrastructure; SFC/SDS for future skills • Role for geographic collectives e.g. Cities Alliance for Smart Cities agenda or Business Gateway areas for business competitiveness • Only route to accessing funds is by pre-planning activity now and engaging with the identified Lead Partners and their delivery vehicles. No or very limited challenge funding • EU rules necessitate “Community Led Local Development” be used for LEADER Local Action Groups. Expectation delivery of fisheries communities money via LAG structures. Expectation that LAG should be better aligned to local CPP. • Financial Engineering Instruments: €220m Fund to be established by Scottish Investment Bank (incorporates existing schemes such as the Scottish Co-investment Fund, Scottish Venture Fund, Scottish Loan Funds) plus potentially low carbon infrastructure investments.

  39. Delivery & Governance Transnational Funds • Focus on outputs and outcomes • Larger more strategic EU competitions e.g. Smart Cities & Communities; Knowledge and Innovation Communities (Scotland considering bidding for a transport KIC) • Focus on achieving the best possible partnership for project purpose • Importance of involving businesses in partnership (even more helpful when EU grown)

  40. Financial Engineering Proposals 2014-2020 Shared Management with MS (Common Provisions Regulation) Centrally managed by COM (Financial Regulation) Research, Development Innovation Horizon 2020 Equity and Risk Sharing Instruments • Financial Instruments under Structural and Cohesion Funds • EU level (central management) • National/regional instruments (shared management) • Off-the shelf FIs • Tailor made FIs • Significant higher proportion of • funds than currently! Growth, Jobs and Social Cohesion COSME Equity & guarantees Creative Europe Guarantee Facility Social Change & Innovation Erasmus for all Guarantee Facility Infrastructure Connecting Europe Facility (CEF) Risk sharing (e.g. project bonds) and equity instruments

  41. Horizon 2020 Access to Risk Finance Part of the Horizon 2020 budget No grant funding but risk-sharing (for loans and guarantees) and risk finance (equity) Aiming to stimulate more investment in research and innovation, notably by the private sector Leverage effect: to attract additional finance and multiply HORIZON 2020 budget Addressing financing gaps: Intervention only if there are financing gaps in the R&I delivery chain (e.g. due to high risk) Building a bridge from R&D to Innovation: complement H2020 grant funding and translate R&D results to the market Encourage top-up funding to target sectors/policies Implementation via entrusted entities (EIB/EIF) Select financial intermediaries after open calls for expressions of interest Aim for at least 30% of the budget to serve R&I-driven SMEs and small midcaps Complementarity with FIs of, in particular COSME

  42. Influencing EU ProgrammesFrancesca Giannini

  43. European Technology Patforms - http://cordis.europa.eu/technology-platforms/individual_en.html

  44. Other European Platforms • Covenant of Mayors:the mainstream European movement involving local and regional authorities, voluntarily committing to increasing energy efficiency and use of renewable energy sources on their territories - www.covenantofmayors.eu/ • CIVITAS (City, Vitality and Sustainability). Initiative launched in 2002 to redefine transport measures and policies in order to create cleaner, better transport in cities - www.civitas.eu/ • POLIS: network of European cities and regions working together to develop innovative technologies and policies for local transport - www.polis-online.org/

  45. Contact Details Ingrid Green EU Officer (Policy & Partnerships) ingrid@esec.org.uk 0843 289 0389 07827955116 County Buildings, Market Street, Forfar, DD8 3WD www.esec.org.uk Francesca Giannini Senior Executive Francesca.Giannini@scotent.co.uk 0141 228 2559 0 7833 08 36 44 5 Atlantic Quay, 150 Broomielaw, Glasgow, G2 8LU www.scotlandeuropa.com

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