Documents considered on 11 September 2013 - European Scrutiny Committee Contents


18 EU research and development programmes ~

(a)

(35202)

12437/13

+ ADDs 1-2

COM(13) 505

(b)

(35204)

12355/13

+ ADDs 1-7

COM(13) 496

(c)

(35210)

12375/13

+ ADDs 1-2

COM(13) 501

(d)

(35211)

12378/13

+ ADDs 1-2

COM(13) 506

(e)

(35209)

12372/13

+ ADDs 1-2

COM(13) 497


Draft Council Regulation on the Clean Sky 2 Joint Undertaking




Draft Council Regulation on the Bio-based Industries Joint Undertaking


Draft Council Regulation on the ECSEL Joint Undertaking





Draft Council Regulation on the Fuel Cells and Hydrogen 2 Joint Undertaking



Draft Decision on the participation of the Union in a European Metrology Programme for Innovation and Research Policy undertaken jointly by several Member States

Legal base(a)-(d) Articles 187 and 188 TFEU; consultation; QMV

(e) Articles 185 and 188 TFEU; co-decision; QMV

Documents originated10 July 2013
Documents deposited19 July 2013
DepartmentBusiness, Innovation and Skills
Basis of consideration(a)  EM of 1 August 2013

(b)  and (e) EMs of 29 July 2013

(c)  EM of 31 July 2013

(d) EM of 7 August 2013

Previous Committee ReportNone, but see footnotes
Discussion in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionCleared

Background

18.1 The EU has a broad competence to act in the field of research and technological development, and its objectives have been set periodically in multiannual Framework Programmes, which have provided the main funding instrument. The Seventh Framework Programme will expire at the end of 2013, and negotiations are drawing to a conclusion on a successor programme (Horizon 2020) which will establish the legal framework and budget for EU expenditure in this area for the period 2014-20, based on three priority areas — excellence in science, industrial leadership, and societal challenges — which are intended to complement and support the jobs and growth objectives set out in the Europe 2020 Strategy.

18.2 EU support can take a number of different forms, including in particular participation in collaborative R&D programmes undertaken by several Member States (Article 185 TFEU) or joint undertakings (Article 187 TFEU), and, elsewhere in this Report, we draw attention to a Commission Communication[64] which sets out the role of public-private partnerships (and other related arrangements), and how the lessons learned from their operation under the Seventh Framework Programme might be applied under Horizon 2020. In that Communication, we also note that the Commission recently put forward a number of proposals for new, or extended, collaborative programmes or joint undertakings, and, in our Report of 4 September, we drew attention to a number of these, dealing with Eurostars, Active and Assisted Living, Clinical Trials and Innovative Medicines.[65] The proposals for the remaining programmes are discussed below.

Documents (a) to (d) — Draft Regulations establishing Joint Undertakings

18.3 Document (a) concerns continued participation in the Clean Sky Joint Undertaking, which was first established in 2007 as a partnership between the Commission and the aeronautics industry in order to enhance the competitiveness of the European industry, and to improve its environmental performance in the light of the EU's commitment to reduce its greenhouse gas emissions. The Commission says that the programme has been successful in stimulating developments, and this proposal for a Clear Sky 2 Regulation seeks to build upon that success by integrating, demonstrating and validating technologies capable of increasing aircraft fuel efficiency, thus further reducing emissions of carbon dioxide from the sector, in line with the aims set out in the March 2011 Transport White Paper.[66] In order to achieve this, it is proposed that EU funding of €1.8 billion should be made available from the Horizon 2020 budget.

18.4 Document (b) would establish for the first time a Joint Undertaking on Bio-based Industries, in order to support research, development and innovation related to renewable biological resources which can be used for the production of bio-based materials, and so support the establishment of sustainable bio-based value chains. Its founding members will be the Commission and the Bio-based Industries Consortium, but any legal entity, directly or indirectly supporting research and innovation in a Member State, or country associated with the Horizon 2020 Framework Programme, may apply to become a member. The maximum EU financial contribution from Horizon 2020 will be €1 billion, whilst the contribution from other members of the Joint Undertaking will be at least €2.8 billion.

18.5 Document (c) concerns a proposed Joint Undertaking on Electronic Components and Systems for European Leadership (ECSEL), and will undertake and support EU level research, development and innovation activities in the area of micro/nano-electronics, embedded and smart systems. It will build upon and combine the work of two previous such Undertakings — ARTEMIS (on embedded systems) and ENIAC (on nano-electronics) — and additionally support work identified by the European Technology Platform on smart system integration. In particular, it will involve Member States as well as the private sector, and it is envisaged that the total funding of €4.8 billion will include €1.2 billion from the EU, €2 billion from participating Member States and €2.4 billion from private investors.

18.6 Document (d) relates to the Fuel Cells and Hydrogen Joint Undertaking, which was established in 2008, in order to further develop the market potential of a technology seen as offering considerable potential for reducing carbon emissions from power generation and transport. In order to achieve this, funding of €470 million was allocated from the budget for the Seventh Framework Programme, with a similar amount having been leveraged from the private sector. The Commission considers that some form of intervention is still needed in this area to address energy, transport and climate change challenges, whilst also stimulating the development of a globally competitive fuel cells and hydrogen sector within the EU, and it is proposing that a further €700 million should be made available from the Horizon 2020 budget

Document (e) — Draft Decision providing for a collaborative R&D programme

18.7 This draft Decision establishes EU participation in collaborative research on a European Metrology Programme for Innovation and Research which would build upon the success of the system created through the current European Metrology Programme, and increase the number of participating Member States from 22 to 27. The Commission comments that reliable, traceable measurement is essential to almost all aspects of life, in that it underpins trade and regulation, is vital to enabling the understanding of scientific research, and is necessary both to demonstrate advances in manufacturing technology and to open up new areas of innovation. The aim of the Programme will be to provide metrology solutions and measurement technologies which support innovation and industrial competitiveness, and help to tackle societal challenges (such as health, environment and energy), including supporting policy development and innovation. The Commission envisage a total value for the Programme of €600 million, with an EU contribution of €300 million and a matching contribution from participating Member States.

The Government's view

18.8 We have received Explanatory Memoranda on documents (a)-(c) and (e) from the Minister for Universities and Science (Mr David Willetts) and on document (d) from the Minister of State at the Department for Energy and Climate Change (Michael Fallon). They say that public-private partnerships in the forms of JTIs have the potential to make an important contribution to the objectives of Horizon 2020, whilst stressing that the Government's position on the negotiation on the Multiannual Financial Framework for 2014-20 is that nothing is agreed until everything is agreed.

18.9 Subject to that caveat, they comment:

  • that the Clean Sky Joint Undertaking has been very successful, with UK companies having benefited from the research and demonstration in which they have been involved;
  • that industrial biotechnology is an area of increasing interest to the UK, and that the Bio-based Industries Joint Undertaking is to be welcomed in that it will encourage greater cooperation and coordination of bio-based industries across the EU and facilitate new business models which do not currently exist;
  • that previous analysis of key enabling technologies has highlighted the importance of helping business cross the first part of the gap between successful research and development projects and their commercialisation, and that the merging of the previous ARTEMIS and ENIAC programmes into the ECSEL Joint Undertaking has the potential to mobilise the necessary resources and produce administrative savings (although the Government will need to consider whether public funding will benefit UK stakeholders);
  • that, despite the significant technical progress made so far, fuel cells and hydrogen energy technologies are not yet commercial, but are set to achieve a breakthrough in the period 2015-25, and will need continuing support which the current proposal will provide by prolonging the existing arrangements with some modifications; and
  • that metrology is a significant contributor to innovation across a wide range of sectors, with the UK having been second only to Germany in its level of participation to what is regarded as a well-managed programme which has achieved a high level of integration of national programmes.

Conclusion

18.10 These proposals provide a useful initial indication of how these elements of the Horizon 2020 Programme will be implemented, and the scale of the financial contribution which the EU proposes to make. We note that all of the proposals are supported by the Government, and, although we think it right to draw them to the attention of the House, we are content to clear them.


64   (35200) 12344/13: see Chapter 17 Back

65   (35196) 12336/13, (35201) 12367/13, (35205) 12369/13 and (35206) 12370/13: see HC 83-xiii (2013-14), Chapter 34 (4 September 2013). Back

66   (32639) 8333/11: see HC 428-xxvi (2010-12), chapter 3 (11 May 2011). Back


 
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Prepared 8 October 2013