climate-kic bp2012 - revised march 2012
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Climate-KIC
Business Plan 2012
Revised March 2012
Climate-KIC partners, Co-location Centres and Regional Innovation and
Implementation Community
Core partners
1. Bayer Technology Services GmbH
2. Commissariat a l‟énergie atomique et
aux energies alternatives (CEA)
3. Delft University of Technology (TU
Delft)
4. DSM
5. Electricité de France SA (EDF)
6. Eidgenössiche Technische
Hochschule Zürich (ETH)
7. Forschungszentrum Jülich GmbH
8. GDF Suez SA
9. Helmholtz Centre Potsdam German
Research Centre for Geosciences
GFZ
10. Imperial College of Science,
Technology and Medicine
11. Institute for Sustainability
12. L‟Institut National de la Recherche
Agronomique (INRA)
13. L‟Universtité de Versailles Saint-
Quentin-en-Yvelines (UVSQ)
14. Netherlands Organisation of Applied
Scientific Research (TNO)
15. Potsdam Institute for Climate Impact
Research (PIK)
16. Schiphol Nederland BV
17. Stichting Deltares
18. Technische Universität Berlin
19. Utrecht University
20. Wageningen University
Co-location Centres: France
(Saclay); Germany (Berlin);
Netherlands (Randstad),
Switzerland (Zurich); UK (London).
Regional Innovation and
Implementation Community:
Central Hungary; Emilio Romagna
(Italy); Hessen (Germany); Lower
Silesia (Poland); Valencia (Spain)
Affiliate Partners
1. Aberystwyth University
2. ARIA Technologies SA
3. Asociación Agrupación Marmol
Innovación
4. Asociación de Investigació de las
Industrias Cerámicas
5. ASTER Societa Consortile per Azione
6. Aston University
7. Bayer Material Science AG
8. Bayer Crop Science AG
9. Birmingham City Council
10. Birmingham City University
11. Birmingham Science Park – Aston Ltd
12. Carbon Management Hungary
13. City of Castellon
14. Climpact SA
15. Centre national de la recherche
scientifique
16. Coopers International Associates
17. Dave Green Energy Services
18. Dirección General de Obras Públicas
19. Economics for Environment
20. Ecole Polytechnique
21. EDINN Global SA
22. EVO Electric Ltd
23. Federación Valenciana de
Empresarios de la Construcción
24. Federación Valenciana de Municipios
y Provincias
25. FONDATERRA
26. Fondation de Cooperation Scientifique
Campus Paris Saclay (FCS)
27. Fundación Comunidad Valenciana-
Región Eurpea
28. Gradepoint
29. Green Hill Sustainability Ltd
30. Greenwatt Technology Ltd
31. GSAG Berliner Gaswerke AG
32. Hamburg University
33. Hungarian Biomass Competence
Center (HBCC)
34. Imperial Innovations Ltd
35. Industrial Synergies Ltd
36. Innovation-Bridge-Consulting
37. Institutio Tecnológico de la
Construcción (AIDICO)
38. Institutio Tecnológico de la Energia
39. Instituto Valenciano de la Edificación
40. L‟Association pour le developpement
du pôle de compétitivité Advancity
41. L‟Institut des sciences et technologies
de Paris
42. L‟Institut de Sciences et Industrie du
Vivant et de l‟Environnement
43. Méteo-France
44. MIDEME SLU
45. Mines ParisTech
46. Mycologix Ltd
47. Naked Energy Ltd
48. Noveltis
49. Novacem Ltd
50. NUMTECH
51. Planetary Skin Institute
52. Plaxica Ltd
53. Process Systems Enterprise Ltd
54. Provadis School of International
Management and Technology
55. QinetiQ
56. Rothamsted Research Ltd
57. Solar Valley GmbH
58. Stichting Dienst Landbouw Kundig
Onderzoek
59. Stichting Historie der Techniek
60. Suez Environnement SA
61. Technische Universität Darmstadt
62. Technische Universität München
63. Thales Alenia Space France SAS
64. The Province of Utrecht
65. The University of Birmingham
66. The University of Kassel
67. The University of Reading
68. The University of Warwick
69. Universidad Cardenal Herrera-CEU
70. Universidad de Alicante
71. Universidad Politecnica de Valencia
72. Université Pierre et Marie Curie –
Paris 6
73. Vattenfall Europe AG
74. Wroclaw Agglomeration Development
Agency
75. Wroclawskie Centrum Badan EIT+
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Table of Contents 1. Executive Summary....................................................................... 3 1.1. Climate-KIC Community................................................................ 3 1.2. Climate-KIC Innovation and Pathfinder......................................... 4 1.3. Climate-KIC Education.................................................................. 4 1.4. Climate-KIC Entrepreneurship...................................................... 5 1.5. Climate-KIC Integration................................................................. 5 2. Business Case and Vision............................................................. 6 2.1. Mission and Vision 6 2.2. Consolidating our Strategic Focus and Shaping up for the Future 7 2.3. Strategic Objectives of our Three Pillars........................................ 8 2.3.1. Innovation & Pathfinder.................................................................. 8 2.3.2. Education........................................................................................ 9 2.3.3. Entrepreneurship............................................................................ 10 2.4. Integrating Activities of the Three Pillars........................................ 12 2.5. Towards Financial Self-Sustainability............................................ 13 3. Market and Competitive Analysis.................................................. 16 3.1. Global Political and Business Drivers............................................ 16 3.2. The Climate-Technology Landscape and Main Players................ 18 3.3. Market Value Chains and Business Sectors.................................. 18 4. Climate-KIC Business Strategy (3-5 Year Perspective)................ 21 4.1. Our Business Model....................................................................... 21 4.1.1. Building a “fit for purpose” Climate Innovation Community........... 21 4.1.2. Cross-Cutting Innovation and Purposeful Mobility......................... 21 4.2. Governance Structure and Processes............................................ 22 4.2.1. Governance Overview.................................................................... 23 4.2.2. A Robust Legal and Intellectual Property Framework................... 24 4.2.3. Differential Functions of CLC versus RICs.................................... 24 4.3. Creating Market Value Chains and Global Leadership.................. 25 4.3.1. Value Chain Creation and Executive Agility................................... 25 4.3.2. Internationalisation......................................................................... 26 5. Climate-KIC Activity Plans 2012-14............................................... 28 5.1. Innovation & Pathfinder.................................................................. 28 5.1.1. Development of Strategic Thematic and Focus Areas.................. 29 5.1.2. Portfolio of Innovation and Pathfinder Projects…………………… 31
5.1.3. Flagship Initiatives…………………………………………………… 33
5.1.4. Climate-KIC Radar…………………………………………………… 34
5.1.5. Innovation & Pathfinder Governance and Management…………. 35
5.2 Education……………………………………………………………… 35
5.2.1. Shared Provision and Integration................................................... 36 5.2.2. Education Programme Overview................................................... 37 5.2.3. Education Governance and Management..................................... 40 5.3. Entrepreneurship........................................................................... 41 5.3.1. Incubation and Support.................................................................. 42 5.3.2. Business Creation.......................................................................... 43 5.3.3. Events and Competitions............................................................... 44 5.3.4. Entrepreneurship Governance and Management......................... 46 5.4. Climate-KIC Management and Coordination................................ 46 5.4.1. CEO‟s Office................................................................................. 47 5.4.2. Communication and Outreach...................................................... 48 5.4.3. CLCs and the RIC......................................................................... 49 6. Financial Plan, Performance Management and Risk Assessment 51 6.1. Financial Plan 51
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6.2. Performance Reporting and Financial Governance 53 6.3. Risk Analysis and Business Plan Assumptions 54 Annexes 58 A Climate-KIC Innovation Project Portfolio B Climate-KIC Communications RfP C Climate-KIC Financial tables D Climate-KIC Scoreboard
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1. Executive Summary
Climate-KIC is well positioned to be a significant contributor to the transformation of Europe
into a clean, competitive low-carbon economy. We are ready to take up the challenges: in
2011 we have shaped and strengthened our organisation and have taken new initiatives in
all of our KIC value propositions - Climate-KIC Innovations, Climate-KIC Education, Climate-
KIC Entrepreneurship and Climate-KIC Pathfinder. We clearly see momentum building up
throughout the entire community.
In 2012 we will further mould the momentum in our Organisation into a force which has the
capacity to drive the transformation required by delivering the young talent who can shape
our future, the products and services which enable Europe to become a low-carbon
economy and by opening new markets and strengthening businesses. Systemic approaches
will benefit innovation well beyond the boundaries of Climate-KIC. 2012 is therefore a key
year for the KIC.
Our original Business Plan for 2012 requested an EIT budget of 33.307M€. We appreciate
the limitations of the current overall EIT budget, and have revised the BP2012 to meet a
reduced budget of 27.431M€, reflecting the EIT Governing Board allocation of 23.231M€
plus the additional 4.2M€ 2010 „catch-up‟ budget for Climate-KIC. This revision comprises
B2012 text, and Annexes providing additional information on: Innovation and Pathfinder
(Annex A1-4); Communications project (Annex B); Financial tables (Annex C); Climate-KIC
Scoreboard (Annex D) and Subgranting selection processes (Annex E). We also considered
our BP2012 in the light of the EIT Governing Board‟s allocation of 23.231 M€ alone. At this
low level of budget, the KIC is capable of supporting multiyear activities started in 2010 and
2011, but almost completely unable to initiate new activities in 2012 - so rendering the KIC
essentially non-viable. We attach a spreadsheet to illustrate this impact.
Delivery of the 2012 business plan requires a total budget of 120.259M€ of which we request
27.431M€ from the EIT.
1.1. Climate-KIC Community
Climate-KIC is a large integrated community – with 20
core and 75 Affiliate partners spanning business,
academic and public bodies. It is in essence, a people
organisation; a key to success is, therefore, to tap into
and engage the people in our community with top level
experience, talent and creativity. We set out to
establish Climate-KIC as a strong brand within the
partners in order to attract a higher share of this target
group. Another action line is the intensification of the working relationships between Climate-
KIC partners, in particular between CLCs and RICs. This will be done by professionalisation
of the internal and external communication, by implementation of electronic tools for
communication and collaboration and by organising more community events at local (e.g.
CLC) levels and at the level of the entire community. The Climate-KIC community brings
together education, research, business and public bodies – creating an Innovation Pyramid.
Highlights
Plan for internal and external communication
KIC community events
Events and projects to strengthen the CLC and RIC network and their interaction
The Innovation pyramid
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The total 2012 budget these activities is 5.607 M€ for which a contribution of 5.292 M€ from
EIT is requested.
1.2. Climate-KIC Innovation and Pathfinder
Innovation projects are key to Climate-KIC since they
rally companies, cities, regions and academic institutes
around delivery of new products and services and
provide essential bridges between education, research
and entrepreneurship activities. In the period 2012-
2014, the Innovation and Pathfinder project portfolio will be progressively expanded, building
strategically on areas of excellence of the KIC partners. The current level of 16 projects will
be doubled in 2012, reaching by 2014 a steady state where a new set of 20-25 projects will
be launched annually. These new projects will be tightly integrated across the project
portfolio and with the Education and Entrepreneurship Pillars. From 2012 a dual path will be
followed for the portfolio development – matching high-quality proposals selected in a
bottom-up approach with a strategic top-down approach to develop major integrated Focus
Area Platforms from the 8-10 Focus Areas that have been identified. In addition, Climate-KIC
will identify those platforms with an exceptionally high potential to develop Flagship
Initiatives. These Flagship initiatives will clearly demonstrate the KIC role and added-value,
enhance the EIT-Climate-KIC brand, create buy-in by high-level decision-makers from
business, policy and academia and create strategic partnerships with other internationally
profiled organisations. To integrate the entire portfolio of KIC activities, we will create a
Climate-KIC Radar. For Innovation & Pathfinder, these activities encompass (i) research
projects that generate knowledge and tools, (ii) implementation projects at local and regional
level by the RICs and local authorities involved in the CLCs and (iii) KIC Added Value
Activities that deliver and stimulate innovation.
The total I&P budget for 2012 amounts to 93.928 M€ for which a contribution of 11.386 M€
from EIT is requested.
1.3. Climate-KIC Education
In 2010 and 2011 highly successful Climate Contextual
Learning Journeys (CLJ) have been conducted. We
have designed and delivered a potent and innovative
educational tool, the Climate Contextual Learning
Journey which has delivered the first two generations of young Climate-KIC entrepreneurs
and innovators. 2010 CLJ students have founded an association enabling our former
students to remain connected to Climate-KIC. We will actively work with our alumni to create
a legally constituted Climate-KIC Alumni Association that will become an Affiliate Partner of
the Climate-KIC. Building on its current success for our students, in 2012 we will also run the
Climate CLJ for external and business participants.
We will deliver a first wave of EIT labelled Masters Programmes for students starting in 2012
and develop a Climate-KIC Fellow programme with the aim to deliver a first wave of EIT
Highlights
Integrated Focus Area Platforms
Flagship initiatives
Climate-KIC Radar
Highlights
Alumni Association
Start EIT labelled MSc courses
E-enabled tools
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labelled PhD programmes for start in 2013. In 2012, e-enabled tools will be put in place
enabling live broadcast of seminars etc across Climate KIC.
The total Education budget for 2012 is 9.638 M€ with a requested EIT contribution of 3.881
M€.
1.4. Climate-KIC Entrepreneurship
The mission of the Entrepreneurship Pillar is to
create economic and societal value by catalyzing and
supporting entrepreneurial activity in the Climate-KIC
community. We do this through the creation of an
entrepreneurial ecosystem for climate change
innovation that spans all our CLCs, RIC, and partners.
The core strategy of Entrepreneurship is to build on, extend and strengthen the structures
existing within the CLCs. The programme started in 2011 will be continued and extended. In
2012, a system will be developed for a Climate-KIC label for incubators and valorisation
centres. It is the aim that ten centres have received this label by the end of next year. The
Climate Market Accelerator will be piloted and tested. It aims to create focused business
opportunities for Innovation & Pathfinder projects, climate innovation start ups and deliver
demonstration and test bed climate change technology for public and private organisations.
A business and coaching network already present in CLCs and the RIC will be used as a
Taskforce to provide business coaching to the teams working in our Innovation & Pathfinder
projects. An Open Innovation Slam will be organised as a pilot in France and Germany to
raise the awareness of students, young entrepreneurs and senior staff of innovative
institutions in the climate innovation field. We will establish a high level European Advisory
board on Entrepreneurship and Business Creation.
The total Entrepreneurship budget for 2012 is 11.086 M€ with a requested EIT contribution
of 6.872 M€.
1.5. Climate-KIC Integration
Although described separately for clarity, Climate-KIC innovation activities are integrated
across the Innovation & Pathfinder, Education and Entrepreneurship Pillars. For example, a
student will follow an education programme, conduct research within an Innovation &
Pathfinder project and be supported in their entrepreneurial activities and business skills by
the entrepreneurship ecosystem. This integration is underpinned by management and
financial processes. Crucial to the overall integration of Climate-KIC‟s activities are the CLC
and RIC, which provide the ecosystem platforms for support and delivery, and our ability to
reach deep into the regions.
Highlights
Climate Market Accelerator
Open Innovation Slam
Climate-KIC label for incubators and valorisation centres
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2. Business Case and Vision
2.1. Mission and Vision
The world is facing a number of sustainability challenges, most of them intertwined. Climate
change contributes to this complexity, necessitating both reduction of greenhouse gas
(GHG) emissions and strategies to adapt to changing environmental conditions. These
challenges can only be met through a global economic and societal transformation
comparable to the industrial revolution; like with the industrial revolution, the required
transformation can be driven only by technology, people and entrepreneurial behaviour in
conjunction. Global population growth - rising from the current 6.8 billion to 9-10 billion
people in 2050 – is a further global challenge, accompanied by an increase of middle class
consumers particularly in emerging markets but with dramatic spill-over effects for the
average European citizen (and job seeker) as well. The demand for food and other goods
will rise sharply as will claims for water, land, energy and other resources.
Resource scarcity will result in a permanent change to business models. Existing markets
will be radically altered and new ones created across a variety of sectors, which include for
instance water management, agriculture, observation and building technologies,
transportation, ICT systems, energy and material production and distribution. Competitive
advantages arise for companies which adopt new business models and processes to
provide resource-extensive, climate neutral products and services. For society and
sustainable development, it is critical that such companies become successful.
Climate-KIC‟s vision is to be the major European, and a key global, driver of the
transformation to a resource-extensive and climate-neutral society. We are working to
realise this vision by creating market value chains through stimulating, catalysing and
delivering innovation, education and entrepreneurship activities – and by identifying and
facilitating the removal of structural barriers to innovation.
Climate-KIC deals with a politically, regulatorily and
infrastructurally fragmented landscape, with few
established major market value chains. Our unique
strategic challenge therefore is to pursue innovation
not only at the supply side but also on the demand
side. At the same time, Climate-KIC is bound to
have a special focus on systems level innovations
whether from a bottom up (technology driven) or a
top-down (societal) perspective. Successful
systemic innovation processes in the field of climate
business take place in the context of national or
supranational (e.g. EU) policies but are very often
levered by regions in response to local needs.
Climate-KIC brings together the three sides of the
knowledge triangle – education, research and
business – but takes innovation one step further by
adding a fourth dimension – that of government and other public bodies. The role of
government, human behaviour and society at large is particularly important for Climate-KIC
Figure 2.1: The Innovation Pyramid: In Climate-KIC the traditional knowledge triangle is augmented by partners from the public sector (“society”) creating an “innovation pyramid”.
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PRODUCTION AND
CONSUMPTION
ASSESSING CLIMATE
CHANGE AND MANAGING
ITS DRIVERS
CITIES AND BUILT
ENVIRONMENT
SPATIAL AND LAND
MANAGEMENT
WATER &
ENERGY
due to the nature of the problems we aim to address. Climate-KIC‟s “knowledge triangle” is
therefore extended to what we call our “Innovation Pyramid” (Figure 2.1).
Our value propositions are driven by our three
“Pillars” – Innovation (including Pathfinder),
Education, and Entrepreneurship. Figure 2.2
illustrates our key deliveries to the markets we
are addressing, whereas Table 2.1 at the end of
this chapter summarises our value propositions to
each of our key stakeholder segments.
2.2. Consolidating our Strategic Focus and Shaping up for the Future
Thematically, Climate-KIC built its original bid proposal and subsequent business plans
around four Themes (Assessing Climate change and managing its drivers - Transitioning to
resilient low carbon cities - Adaptive water management - Low-carbon production systems).
These areas are critical in the fight against global warming and its consequences, and will
continue to leverage the core capabilities and excellence of the partners in the Climate-KIC.
As a result of our experience and
evolving global insights, Climate-KIC
has refined and enhanced the four
themes to highlight strategic Thematic
Areas (Figure 2.3). Starting 2012, we
will populate systematically this
strategic framework by a growing
number of consolidated project and
activity portfolios (Chapter 5.1). These
newly-developing project portfolio areas
(Focus Areas) will progressively be
transformed into integrated
programmes ((Focus Area Platforms)
that amalgamate our innovation,
entrepreneurship and education
activities. This strategic integration of
the activities of our three Pillars will be
a key focus from 2012 (see section 2.3
below).
Our strategic Thematic Areas and the Focus Area Platform framework within them will serve
as a guiding model for strategic development of Climate-KIC‟s partner project portfolio and
Figure 2.2: Climate-KIC delivery model and value propositions.
Figure 2.3: Climate-KIC Strategic Thematic Areas
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for the CLC and RIC distinctive structure and roles (Chapter 5.4). Climate-KIC plans to
optimise its partner structure and the number of CLCs and RICs during 2012.
Climate-KIC is composed of people, partner organisations, and governing as well as
operational entities. The latter encompass our central KIC and CLC/RIC structures; this is
our Business Group (see Figure 2.4). Climate-KIC‟s innovation ecosystem is rooted in the
facilities, knowledge and competences of our CLCs. The CLCs provide these resources
through KIC added value activities and Complementary KIC activities which thus function to
express and quantify the knowledge base available to Climate-KIC for the development and
implementation of its Innovation programmes. The RIC partners also play an important role
in the Innovation ecosystem by articulating needs and challenges, guarding the market-
orientation of the Innovation and Pathfinder portfolio, and providing test-beds and
demonstration sites for KIC added value activities and Complementary KIC activities. For an
optimal use of all knowledge, expertise, competences and facilities available in the CLCs
and RICs, it is essential to obtain
a good overview of these. Such a
tool – Climate-KIC Radar - will
facilitate and accelerate the
building of communities around
the focus areas and will contribute
to an effective allocation of
innovation activities.
Responsibility for development of
this overview lies with Innovation
& Pathfinder Pillar (Chapter 5.1).
Community building and
development requires the proactive organisation of an array of inspiring encounters between
people from throughout our innovation pyramid. In previous years, events have been
organised at the level of CLCs, RICs, the Climate-KIC coordinating and management bodies
and the broader Climate-KIC Community. Examples of the latter include our Pioneers into
Practice programme, our Climate Contextual Learning Journeys, the Ideas Market Place,
and our annual Innovation Festival. With the further development and expansion of our total
portfolio of activities we must also develop options for easy, swift and carbon-neutral
communication and collaboration a step further. To this end, ePresence and eCoffee room
facilities and other virtual collaborative platforms will be established in the next two years
(Chapters 4 and 5).
2.3. Strategic objectives of our Three Pillars
2.3.1. Innovation & Pathfinder
Innovation and Pathfinder activities lay the foundation for Climate-KIC‟s new products and
services for the global market and thus to our potential economic impact. Innovation at the
systems level is at the core of our strategy given the lack, or fragmentation of, market value
chains in business. Climate-KIC‟s necessary focus on systemic innovation differentiates us
from most other public and private innovators. However, focused innovation, be it
incremental, radical or disruptive, also remains important for Climate-KIC in terms of volume
and market capture.
Figure 2.4: The Business Group and its key relationships.
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The refined strategic thematic framework (Fig. 2.3) captures the potential innovation Focus
Area Platforms (Chapter 5.1) that Climate-KIC wishes to further develop and complement
over the next 5-10 years These take into account the insights and major challenges currently
proposed by science, public administration and business in today‟s climate change and
adaptation markets and arenas.
Three to five year strategic objectives of our Innovation & Pathfinder activities and
2012 efforts to achieve these:
Strategic objective Strategic objective 2012 milestones
Develop and maintain a strategic and integrated project portfolio based on robust methodology with different types of projects that demonstrate KIC added value
- Build Europe-wide Focus Area Platforms within and across Climate-KIC‟s themes
- Develop and applying robust and transparent project generation, selection and evaluation processes
- Facilitatw innovation develop-ment and testing, through (systemic) innovation projects
- Develop flagship initiatives together with key international organisations, providing high visibility to the KIC
- Link Innovation & Pathfinder projects to speed up innovation cycles through cross-fertilizing combinations of technology driven projects and the generation of new market value chains and barrier removal via Pathfinder
- Develop the concept of the European Focus Area Platforms and link them to smaller innovative projects.
- Begin the identification of flagship projects and related partnerships,
- Increase the diversity of project types (push/pull, public/private, systemic/incremental etc.)
- Clarify further the way in which Innovation and Pathfinder complement each other
Ensure quality and transparency of processes to help the partners develop into a community:
Development of governance and management mechanisms which are efficient, effective, transparent and equitable.
- Further elaborate internal processes based on the experience of 2011 to speed up implementation,
- Develop internal communication tools to make this happen (see Chapter 6.6)
Integrate and embed the Innovation & Pathfinder project portfolio with other KIC activities
- Develop tools in close collaboration with the Education and Entrepreneur-ship Pillars (cf. 3.2.4 below)
- Develop an integrated vision of the KIC partner activities to ensure coherence between the existing resources and the innovation stimulated.
- Develop and implement the Climate-KIC Radar that provides an easily accessible overview of the entire portfolio of KIC activities (existing research, implementation projects in the RIC, KIC added value activities etc.) to Partners with the aim to facilitate networking and the development of new innovative activities
2.3.2. Education
The overarching mission of the Education Pillar is to create a generation of committed
climate change innovators and entrepreneurs who will be at the heart of a network of change
agents throughout Europe and the world. These professionals will have their roots in science
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and be trained in competences which are indispensable for success: the ability to
communicate across disciplinary and sectorial boundaries, systems thinking, creativity
techniques, and entrepreneurship and project management skills. We will create a network
to bring together our alumni with the current group of students. Such a network will enrich
and inspire the latter with practical experiences to which they can connect. It offers the
alumni the opportunity to stay in touch with the latest developments. The network will
leverage the investments and education of Climate-KIC and be an enabling factor for value
chain creation.
Three to five year strategic objectives of our Education activities and 2012 efforts to
achieve these:
Strategic objective Means 2012 milestones
Ensure all researchers are motivated and able to maximise the innovation potential of their projects.
- Programmes and courses for our researchers that both develop innovation capability and instil confidence when working within the innovation pyramid.
- Create an integrated suite of programmes and courses (Scholars, Fellows, Senior Fellows and Associates) based around the Climate Contextual Learning Journey that are EIT labelled.
Create a networked community of climate innovators and entrepreneurs.
- An Alumni Association that is an Affiliate partner and contributes to and continues to benefit from our education programmes
- Continuing professional development in climate change for our commercial and public sector partners as a means of deeper engagement
- Climate Contextual Learning Journeys for external innovators and entrepreneurs (Associates course) to widen Climate-KIC‟s reach
- Support the foundation and integration of the Alumni Association and co-develop continuing professional development courses with partners.
2.3.3. Entrepreneurship
Climate-KIC Entrepreneurship creates economic and societal value by boosting
entrepreneurship in the Climate-KIC community. We do this through the delivery of an
Entrepreneurship programme for climate-related business creation. The Climate-KIC
Entrepreneurship programme has three main objectives:
- Increase of the number of climate starters;
- Faster growth trajectories for climate starters;
- Faster and enhanced growth for existing businesses on climate opportunities.
The current activity portfolio of the Entrepreneurship Pillar includes support for early-stage
Climate starters through the incubators in the Climate-KIC network. The incubators have
specific programmes in place for climate starters, for example the „Greenhouse‟ programme
where students and more senior researchers can step aside from their day-to-day job to test
and focus on developing a business model and business plan on their climate innovations. If
the start-ups successfully finish the Greenhouse programme they can get access to the
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Climate-KIC grants, apply for office space and business support in the incubator and attend
Climate-KIC entrepreneurship master classes.
CLC‟s act as focal point and accelerator for entrepreneurial support and services with
Climate-KIC „labelled‟ Incubators, Valorisation Centres and Technology Transfer
Organisations. The core strategy of the Entrepreneurship Pillar is to build on, extend and
strengthen the structures existing within the CLCs, creating an interacting network of
complementary facilities and support.
Three to five year strategic objectives of our Entrepreneurship activities and 2012
efforts to achieve these:
Strategic objective Means 2012 milestones
A professional enabling
environment of the highest
quality building on and
strengthening existing
structures within Climate-KIC
CLCs
- Establishment of a Climate-KIC network for Incubators and Valorisation centres
- Establishment of a portfolio of matchmaking events and master classes
- Improvement of a strategy for high tech support for Climate SME.
- Inventory and decision on a
EIT/Climate KIC Innovation
Fund
- Joint standards and working practices for the network enabling a Climate KIC-labelling system.
- Survival rate of starters is larger than 50%
- Introduction of systems of Seed capital and SME Vouchers in each CLC, at least five vouchers provided in 2012
Increase of numbers of
climate starters arising from
Climate-KIC Innovation and
Education activities to
20/year for each CLC
- Establishment of scouting and coaching network and related events
- Organisation of idea competitions and Innovation Slams
- Establishment of a taskforce on Business Coaching for I&P projects
- Arrangements for scouting and coaching in each CLC
- At least 5 start-ups per CLC
Strengthening alignment between governmental policies on Climate mitigation and adaptation, relevant research programmes, and business creation.
- Climate KIC support for Public/Private testbeds and demonstrators as part of the Innovation Accelerator Program - People mobility within the Innovation Pyramid
- Establishment of a Market Accelerator program - 180 Participants in the Pioneers into Practice program - Establishment of a high level European advisory board on Entrepreneurship.
Decreasing average time to market of climate innovations in Europe
- Hands on program for a fast implementation trajectory of Climate Innovations working pro actively on barrier removal and market acceleration
- Establishment of a Market Accelerator program
- Conference on Climate Innovations at Airports
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2.4. Integrating Activities of the Three Pillars
Activity integration is pivotal to Climate-KIC. Climate change is a relatively young cross-
sectoral phenomenon; the political, regulatory and infrastructural landscape is complex, and
there are few major established market value chains for Climate-KIC to engage with.
Furthermore, efficient approaches to address mitigation or adaptation challenges frequently
invoke different disciplines, e.g. water, land and low-carbon technologies and the fragmented
markets make it imperative for Climate-KIC to address systemic innovations.
Integration of the activities carried out in the three Pillars provides additional dimensions to
our value propositions, enriches and strengthens the individual Pillars, and leads to
invaluable cross-fertilisation with new ideas and concepts as result. Concrete cross-Pillar
activities include our people-based programmes, the Contextual Learning Journey and from
2012 the new Market Accelerator (see Chapters 4 and 5).
The Innovation Pyramid (Figure 2.1) is integrated within the three Pillars which operate in a
synergistic manner. Value propositions are provided on the level of the individual key
stakeholder segments (Table 2.1 below). In essence, Climate-KIC develops a cross-
disciplinary approach to innovation. We aim to enhance our sphere and range of influence
by offering the model and its collaborative tools to our stakeholders in Europe and
internationally. Current tools include our Pathfinder programme, the Climate Contextual
Learning Journey, and the Pioneers into Practice (PiP) outreach to local and regional user
communities and public bodies offered through our RIC.
Three to five year strategic objectives of activities to integrate Pillar activities and
2012 efforts to achieve these:
Strategic objective Means 2012 milestones
Integration of the Pillar activities and objectives
- Coordination of KIC students‟ research and education with Innovation and Pathfinder and Entrepreneurship activities.
- Coordination of Innovation and Entrepreneurship Pillars to accelerate transfer from Innovation to commercialisation:
- Proof of concept testing - Use of European
platforms to test ideas
- Use of Innovation and Pathfinder projects to generate ideas for start-ups
- Establishment of procedures to provide students with a clear view of the opportunities offered by all KIC Pillars
- Creation of an entrepreneurship support unit that helps projects with their entrepreneurial activities
- Establishment of procedures to furnish Innovation and Pathfinder project leads with a clear view of opportunities offered by the two other Pillars.
- Business Coaching Task Force
- Greenhouse facilities
Development and provision of comprehensive Climate-KIC innovation model
- The development and testing of new systemic models for innovation comprising a set of synergistic tools
- The development and testing of the Market Accelerator
13
Table 2.1: Climate-KIC Value Propositions to Key Stakeholders1
Key stakeholder
Value proposition/Benefit I&P EDU ENT
Public authorities
- Identification and evaluation of demonstration projects - Exchange of best practices between Climate-KIC
associated authorities
- Help with dealing with systemic issues - Help in agenda-setting by national and EU governments,
and advice on policy and strategy
- Innovative solutions to reach Climate-related targets - Guidance and advice to strengthen (regional) economy - Contact with high potentials (important for recruitment)
X X X X X X
X X
X X
Large private Enterprises
- Removal of barriers (help in identifying standards and reduction of uncertainty, labels, regulations)
- Identification of new market and value chains (together with authorities)
- New networks in platforms and contact to radical ideas - Ideas and opportunities to link with SMEs - Help with dealing with systemic issues - Identification of good and entrepreneurial students - New products, services and patents
X X X X X X X
X X
X X X X X X
SME‟s - Removal of barriers (help in identifying standards and reduction of uncertainty, labels, regulations)
- identification of new markets (together with authorities) - scale existing innovative SMEs with radical solutions - Help in identifying demand, and platforms for exchange
and testing of tools and services
- Ideas and opportunities to link with large companies - Help with dealing with systemic issues - Identification of good and entrepreneurial students - New products, services and patents
X X X X X X X X
X X
X X X X X X X
Academia - Continuity of contacts (high-level) with companies and authorities
- Influence through labelling power etc - Identification of good and entrepreneurial students - Inspiration for research emerging from practice - Enlargement of Educational offerings - Enhancement of attractiveness for new students
X X X X X X
X X X X X
X X X X X
Students - Inspiring environment for theses and internships - Intensive contact with potential employers - Start of pathway towards own business - Internationalisation of education - Good overview of working-opportunities and cultures in
public and private sector
- Prestigious (EIT / KIC) label
X X X X X
X X X X X X
X X X
2.5. Towards Financial Self-Sustainability
Climate-KIC‟s initial capacity to absorb EIT funding is expected to be relatively modest over
the next two years (the „set-up‟ phase). However, once this foundation has been laid,
development will be exponential due to expansion of Climate-KIC activities and perhaps an
increase in the number of Climate-KIC partners and/or entities (CLCs, RICs).
The projected life cycle of Climate-KIC can be broken down to the following phases:
1 I&P: Innovation and Pathfinder Pillar; EDU: Education Pillar; ENT: Entrepreneurship Pillar
14
Set-up phase (2010-12): Primary focus on implementing the necessary legal,
financial and governance structures, recruitment of core staff, and implementation of
initial core activities. During this phase the portfolio is not integrated i.e. most
activities related to Climate-KIC and its partner institutions do not contribute directly
to KIC added value. Climate-KIC will transition into the ramp-up phase during the
course of 2012 by determining the required activity level within each Pillar and
horizontal thematic and focus areas.
Ramp-up phase (2013–15): Once the basic functioning of Climate-KIC is in place, the
level of activity and the amount of resource managed by the KIC can, and should, be
significantly increased to ensure a critical mass of activity with real and measurable
impact. The increase of KIC-added value activities will go hand in hand with the
integration of the portfolio of KIC activities and the Pillars. The radar project will
support integration (see Chapter 5.1). Focus Area Platforms will develop from each
Focus Area to secure activity integration and to develop strategies to achieve real
impact (see Chapter 4). The ramp-up phase also requires a review and subsequent
adaptation of the partner strategy (expedited by EIT lifting the sub granting cap and
other flexible derogations to the existing rules), closely linked with adjustments
(expansion) of CLC and RIC structures.
Consolidation phase (2016–2018): Climate-KIC becomes a mature and a well-
established structure with a stable and clearly defined activity scope. In this phase,
dependency on financial support from the EIT remains high. Climate-KIC‟s results
become visible; the transition towards a sustainable KIC starts and mechanisms
(including a possible new legal structure) are put in place to facilitate this.
Leveraged growth phase (2019-21): Climate-KIC‟s own resources start increasing
and, together with the remaining support of the EIT, develop a leverage effect that
generates additional resources to reinforce all partner activities (i.e. research,
education, entrepreneurship, innovation deployment, etc.). EIT support decreases in
this phase
Self-sustained phase (2021-25): During this phase the total annual Climate-KIC
budget will stabilise and the full scope of KIC activities are implemented. Concrete
actions to decrease the KIC's dependence on EIT funding are applied.
Figure 2.5 (overleaf) shows the articulation and relative orders of magnitude of resources
anticipated over time. Reaching the self-sustainable phase is likely to take a minimum of 10-
12 years, but some funding from EIT or the European Commission even beyond that point
may prove necessary, particularly for activities such as education and to ensure that
Climate-KIC is able to have continued European or global impact.
Making Climate-KIC financially self-sustained requires the progressive development of a
new business model highlighting unique, effective, and visible market value propositions.
Our long term strategic objective is to develop a portfolio of specialised services provided by
the KIC Business Group (Figure 2.4) to partners and Climate-KIC-external entities
(customers). This will most likely require changes to the existing legal model. The Climate-
KIC Business Group should ultimately be financed by a combination of partner contributions
(i.e. membership fees), KIC-internal revenues (equity revenues, IP revenues), revenues from
market services (offered to members as well as KIC-external customers) and support from
public entities at national and European level, including the EIT. Typical services provided by
the KIC Business Group are envisaged to include brokerage services, integrated project
15
and/or consultancy services,
communication services, quality
control, market validation, large-
scale project
management/supervision, and
fundraising for public-private
climate innovation projects.
In a shorter term perspective, the
setup phase should be
completed during 2012 and the
ramp-up phase completed in
2014 or 2015. Planning scenarios
for the ramp-up phase will help
develop an initial vision of the
self-sustainable phase. In this
final phase, resources will need
to be generated for central Climate-KIC functions to develop and oversee the community
portfolio of innovation activities and to leverage funds and resources for KIC-partners. In the
medium term (5-10 years), a robust co-funding plan must be put into operation in order to
finance the projected exponential growth of Climate-KIC activities and to minimise financial
dependence (risk) on the EIT as the sole external funding source.
Five to ten year strategic objectives of activities to achieve financial self-sustainability
and 2012 efforts to achieve these:
Strategic objective Means 2012 milestones - Achievement of Financial
self-sustainability Financial and Strategy planning as described.
- Detail scenarios for the ramp-up phase for each Pillar and horizontal focus areas during 2012.
- To put in place a detailed and action-oriented co-funding strategy and communication plan to support planned financial expansion over the next 5-10 years (development phase). This will help to minimise risk associated with financial dependence on the EIT as the single external funding source.
Figure 2.5: Climate-KIC transition towards financial self-sustainability
16
3. Market and Competitive Analysis
3.1. Global Political and Business Drivers
Climate-KIC is operating in a highly complex social, economic, political and technological
context with undeveloped or underdeveloped and fragmented markets. The following key
market and mega-trend drivers are identified:
Climate change and demographic trends: According to the UNESA, the world‟s
population will rise to between 7.8 and 11.9 billion people by 2050, with a „medium variant‟
estimate of 9.2 billion. At the same time, in many emerging countries the middle class will
expand massively – in India, for instance, over the next two decades from the present 5% to
more than 40% of the population creating the world‟s fifth largest consumer market. In a
similar development, the largest world‟s consumer market will arise in China owing to the
increase of Chinese urban income. The increasing global population growth and consumer
markets put a pressure on policies to reduce GHG emissions and lead to a higher demand
of energy and natural resources as land, water and other commodities. The projected effects
of climate change add to the challenges, for instance through the frequency-increment of
extreme events such as heavy precipitation and droughts. Concepts, strategies and
technologies to reduce resource use and to adapt to climate change will become extremely
important in the coming decades.
Shifts in global equilibria: The global economy is currently experiencing fundamental shifts
in growth and corresponding trade and investment flows with newly industrialising countries
and developing countries gaining importance. This shift is very prominent in the climate
arena. The impacts of climate change are likely to be strongest in vulnerable countries in the
so-called south. Accelerated growth in emerging economies strongly adds to global
emissions and opens up new markets for clean technology. Especially in the field of
mitigation technologies, we are starting to see a global race for competitiveness based on
cost and innovation. The implication for Europe is not only to look at innovation for climate
action in Europe, but at European innovation for global climate markets.
Climate policy, awareness and acceptance: While society‟s general willingness to tackle
climate change has increased substantially, global climate policy has been moving slowly for
decades and is struggling to come to a strong new deal setting the world on a path to a
maximum average warming of 2 degrees Celsius. Climate action, due to perceived high
costs, potential free-rider effects and differing political agendas, is likely to happen on a
national/local level and will need to exhibit synergies with other development targets such as
job creation or poverty alleviation efforts. While regional and city governments have recently
created ambitious climate mitigation targets and action plans, companies in general remain
rather reactive. In the light of limited mitigation action, the issue of adaptation has risen
strongly on agendas worldwide. However, the challenge to commit significant resources to
long-term action in the face of an apparently elusive problem in the midst of seemingly more
urgent ones remains difficult – particularly where the duration of political mandates inevitably
leads to short-termism.
Financial crisis and its impact on deployment of innovative solutions: A prominent
urgent problem is the tight financial and budget situation especially in the western world,
traditionally the hotspot of innovation. In this situation, decision-makers and the general
public are sceptical to take far-reaching decisions for issues which are uncertain to occur
17
and to implement solutions that are (viewed as) more expensive or risky due to their
systemic nature. However, since many of the individual technologies already exist, it is
imperative to invest in implementation to increase knowledge about systemic innovation,
obtain insight in advantages and disadvantages and relate findings to policy or regulatory
requirements. Knowledge transfer through best practice sharing is crucial in order to avoid
spending money on wrong solutions and to encourage confidence in innovative options.
Venture capitalists have traditionally focused on companies with low capital requirements
that can quickly get bought up or go public. In recent years, many venture capitalists have
been enticed to risk longer-term, high-capital energy investments in clean energy, thanks to
generous government subsidies in renewable energy markets. In particular, they spent
hundreds of millions of dollars on solar-cell start-ups that need to build expensive equipment
and factories to prove their technologies, and can take many years to generate a return on
investment. However, as governments around the world are now scaling back support for
renewable energy, venture capitalists are shifting their clean technology investment strategy,
focusing less on high-risk technologies and more on ideas that could have a faster payoff but
a smaller impact, such as technologies for improving energy efficiency. Although the shift is
raising concerns about how innovative energy technologies will be commercialised, it may
benefit Climate-KIC where SMEs and multiple incremental changes at local level may be
highly effective. The KIC‟s Entrepreneurship ecosystem and systemic approach to
accelerating innovation to markets (Market Accelerator, section 3.3) provide a unique
opportunity in this context.
Lack of integrative research and innovation initiatives: The development of new
solutions and clear criteria for establishing best practices based on evaluations of
implementation projects need support from the research and innovation community.
However, since climate change neither represents a well-defined demand sector (like
energy) nor relies on an established and focused knowledge base (like ICT) the challenge is
much more to find new connections between sectors and deliver systemic innovation. While
there exist very substantial funding vehicles in specific areas, there have been very few
attempts to integrate these activities.
Increasing importance of “smart” technology: Besides the necessary occurrence of
fundamental scientific and technologic advances in different fields, smart technologies
(based on pervasive sensing, ICT and optimisation) might enable the transition to systemic
solutions and user-driven innovation in the field of climate change. The challenge for
Climate-KIC here is to work together with experts in smart technologies and put together the
right data from various fields to come to new applications.
While the above-listed key drivers are global by nature, there are large regional differences
in how they manifest themselves. Climate-KIC will stay focused chiefly on Europe (the
European Union), at least in the beginning. Building on first achievements, global outreach
activities will be defined by global needs and interests for which the Climate-KIC – alone or
with international partners - can deliver the innovation.
This also is the case with regard to our business and funding strategy: Climate-KIC‟s main
income generators will continue to be European private and public funding sources for at
least the next 5-7 years (see Chapter 6). That said, we will from 2012 start building close
relations with select international funding institutions, notably the World Bank, relevant UN
18
agencies and regional development banks. Links to international venture capital providers
specialised in climate- and clean-tech will also be pursued (Chapters 4 and 5).
3.2. The Climate-Technology Landscape and Main Players
Climate-KIC is unique in a European as well as a global context in our ability to encompass
a multitude of key climate technologies and potential to deliver and implement systemic
innovations. To our knowledge, no other entity or integrated network focused on climate
technologies - or even clean technologies with the possible exception of sustainable energy
technology - match those two features and bring together the four sides of our Innovation
Pyramid.
Whereas Climate-KIC‟s market in essence is a global one, our home market is Europe which
at the same time also happens currently to be the leading market in terms of knowledge,
research, regulatory mechanisms and business Innovation. Climate-KIC is committed to use
our unique position to consolidate and further expand Europe‟s global leadership in all
climate-related domains. We will do this through continuous collaboration with European key
players in the field (notably the European Commission) and monitoring of our own
performance against global standards through selected KPIs as well as ongoing contacts to
international stakeholders - notably UN bodies and national governments and knowledge
institutions in select Asian, African and American hotspots relevant to our strategic thematic
and focus areas (Figures 2.3, 5.2).
We will use our growing insights and in-depth understanding of regional and regulatory
differences conditional to successful climate innovations across European regions and
countries as a strategic asset for our future outreach to international climate hotspots.
3.3. Market Value Chains and Business Sectors
No established “climate change” market is yet in
existence and the few related market value chains that
actually do exist are fragmented in terms of both
technology and geography. Responding to climate
change is therefore likely to require systemic changes
in many, if not all, sectors of the economy.
While global climate mitigation efforts initially have
focused on four main sectors - electricity generation;
industrial processes; transport; and agriculture and
land-use - reaching the ambitious climate mitigation
goals now generally thought necessary in an affordable way will require a systems approach
that explicitly integrates the energy demand side as well as energy supply. For example,
intelligent grids exploiting the energy storage capacity of buildings and hybrid/electric
vehicles will be necessary in order to make intermittent renewable energy supply affordable
and resilient.
Extreme events are likely to become more frequent as the century progresses. Climate
impacts will be diverse and pervasive, leading to unexpected impacts and adaptations. The
problems facing northern Europe are likely to be very different from those facing southern
Europe. Key issues include flood and drought risks, heat-waves and fire risk, urban heat
islands and the risk of potentially accelerating sea-level rise in response to faster than
At present, Climate-KIC addresses the challenge of non-existing/ fragmented/immature “climate change” markets through the following instruments and actions:
Pathfinder Projects
Market Accelerator
High level round tables
Strategic partnerships (Commission, international climate “hotspots)
19
expected ice-sheet loss. In addition to an enhanced ability to predict decadal variability and
change, engineering resilience into our infrastructure and service delivery systems will be an
important adaptation in urban systems and deltas, high-speed and mass transport systems,
flood management, agriculture and forestry and health. Some of this may involve biotech
solutions, e.g. drought resilience in crops and have an explicit link with mitigation strategies,
e.g. land-use and bio-energy.
Further to our enhanced thematic focus (Figure 2.3), Climate-KIC has identified the following
underpinning technologies and approaches fundamental to an effective response to climate
change:
Intelligent, pervasive sensing and decision support: Wide deployment of sensors
and models of the relevant systems to interpret the data and management
information systems to allow monitoring and interpretation of (climate) data and
subsequent decision making at a variety of timescales, e.g. real-time traffic
management through to monitoring stresses on railway embankments during
repeated extreme events.
Systems integration and real-time pricing: Resource efficiency and management
of interlinked agro-energy-water systems will be the key to an effective response
to climate change. Low-carbon electricity will be made more affordable and
resilient through a paradigm shift that integrates the demand and supply sides,
thus reducing the capital intensity of the system. Land use will be critical for food
security, flood risk and bio-energy and other types of bio-production. The ability to
price the use of a service based on load and timing will be important and Climate-
KIC therefore needs to develop not only solid systems integration expertise but
also deeper understanding of user behaviour.
Human capital: Climate-KIC is committed to providing a new generation of
entrepreneurs, policymakers, scientists and innovators who can work in a trans-
disciplinary context and who form a network of change agents throughout the
world.
From a market and competition analysis point of view, all this effectively sums up the
following conclusions:
Climate-KIC essentially already has all the required tools and instruments in our
“toolbox” (cf. the original bid and Chapter 5) – our challenge for 2012 now is to
adapt, implement and balance these in an intelligible manner, and to link these
with identified market niches.
Enhancement of Climate-KIC‟s strategic focus is required in order to encompass
the following interrelated climate sustainability themes (Figure 2.3): Cities and
built environment – Spatial and land management – Production and consumption.
International stakeholder mapping and gradual development of strategic relations
and collaboration efforts with select major international innovation players
including the two other KICs are required in the identified strategic focus areas
(Figure 5.2).
Climate-KIC needs to build long term relations and work very closely with
relevant policy and regulatory stakeholders, notably in the European context (the
20
European Commission) and in relation to United Nations (UN) processes and
agencies.
Within our strategic themes, Climate-KIC needs to develop a deeper
understanding of political and economic preconditions and barriers to climate
innovation in leading Asian, African and American “climate hotspots” and an
understanding where Climate-KIC can supply innovative solutions. This will
happen via prudent bilateral relationship-building in close collaboration with
relevant parts of the European Commission, such as DG EAC, DG RTD, DG
CLIMA and JRC, and the EIT.
21
4. Climate-KIC Business Strategy (3-5 Year Perspective)
4.1. Our Business Model
4.1.1. Building a “fit for purpose” Climate Innovation Community
Climate-KIC was established in February 2011, as a Dutch Association since this legal
structure best suits our range of partners and the immature nature of the climate change
market sector. Our 20 Core Partners and current 75 Affiliate partners bring together the four
sides of the Innovation Pyramid (Figure 2.1) – education, research, business, and
government – to create an environment to foster innovation.
To be effective, Climate-KIC must have an active, committed and truly integrated community
composed of a balance of partners from the business (large and small), academic and public
sectors. We established the current community of core and affiliate partners following our
simplification project in February 2011. Overall, this has created a cohesive and focused
community, brought together by the exceptional pressure of the simplification process, and
also benefitting from a Darwinian natural selection effect such that while some (a minority)
partners did not rejoin in February 2011, the majority did and many new partners joined
them.
However, we must regularly review our membership profile and refine our
requirements/definition for membership. We are now regularly receiving applications from
potential new partners, both core and affiliate. These are driven by the fact that they see the
KIC as providing future value for them and are often involved already in certain KIC related
activities and wish, either from this experience or due to the low level of the existing sub-
granting cap, to join the full community.
A key question for Climate-KIC in 2012 is therefore to determine the overall optimal size and
membership balance required for a sustainable and thriving innovative community. Coupled
to this, we will refine our criteria for membership in the light of our experience to date. We
will also be pro-active to ask which new partners would we like to join Climate-KIC and how
best to attract them. In contrast, we anticipate natural reduction in the number of RIC affiliate
partners once the sub-granting cap is lifted by the EIT. Closely linked to establishing a
partner strategy and a most welcome lift of the current sub-granting cap, Climate-KIC will
during 2012 review our future membership fee structure and incentives and our CLC and
RIC structures, in alignment with the strategic planning set out in this business plan.
The KIC community is, and should be, a living „animal‟, with an evolving, not a stationary,
membership. We must be agile and responsive but also entrepreneurial and proactive by
creating or using opportunities that can make our knowledge and innovation community
even stronger.
4.1.2. Cross-Cutting Innovation and Purposeful Mobility
The KIC has many world-leading and world-class institutions amongst its partners. Building
on this excellence, we are creating the KIC community – to provide synergism via co-
operative behaviour, such that together its partners can achieve what individually they
cannot do. Our focus must therefore be on providing, building and enhancing this internal
added-value. Thus, a major asset that the KIC can uniquely provide is access to cross-
22
cutting innovation activities - cross-theme, cross-Pillar, cross-ecosystem – opening up a
wealth of innovation opportunities that more conventional organisations, or consortia of
institutions, could not offer. This is the value proposition we offer to our existing and future
partners.
People are core to everything that we do, and their mobility is essential if we are to capitalise
on these cross-cutting opportunities within the KIC. Such mobility must not, however, be
mobility for its own sake, but must be fully integrated into our Pillars and ecosystems. It must
cross national, sectorial and discipline boundaries - we call this „purposeful‟ mobility‟.
Nevertheless, there is a further point that we in Climate-KIC must particularly consider. Our
KIC is focussed on the mitigation of as well as adaptation to climate change; we therefore
have a responsibility to ensure not only that our mobility has a purpose, but also that it is
carried out in the most appropriate low-carbon manner. Whilst face-to-face interactions and
immersion in and between our co-location ecosystems is essential, we must also take
advantage of opportunities for enhancing interactions via e-presence community tools. The
initial development of these takes place in Q4 2011 and in 2012 and it will be an important
part of the development of Climate-KIC‟s infrastructure.
Finally, our partners‟ money and our people‟s time are valuable and limited commodities. It is
crucial therefore for Climate-KIC to develop and support highly effective knowledge transfer
so that neither time nor finance is wasted. Trained brains are the most effective form of
knowledge transfer and our students, staff, alumni and Pioneers-into-Practice will provide
dissemination tools not only throughout the KIC, but also through liaison with our KIC
Supporters and beyond. Events such as the annual Innovation Festival will also provide an
additional conduit for knowledge transfer. The importance of effective knowledge transfer is
reflected by the priority given to this issue in the activity plans of our three Pillars and of the
CEO‟s office (Chapter 5).
Strengthening our Partnerships - Key deliverables for 2012
A partner strategy including assessment of our current and future partner profile, and criteria for membership
A CLC/RIC strategy
Several people mobility and e-mobility measures
4.2. Governance Structure and Processes
To be successful, Climate-KIC must not only have the right portfolio of partners in its
Community, it must also have a structure and processes that enable us to be efficient,
effective and responsive to our diverse and changing environment. The KIC must be
cohesive, entrepreneurial and agile, able to respond rapidly in a co-ordinated manner – a
tough challenge for an organisation whose partners are all independent and highly
successful legal entities in their own right!
23
4.2.1. Governance Overview
Governance is the responsibility of the Assembly comprising the 20 core partners. This body
approves the annual Business Plan and Grant agreement, but delegates more day-to-day
governance to a smaller Governing Board who members are nominated by the CLCs and
RIC to ensure effective cross-KIC representation (see also Figure 2.4). Affiliate partners also
have representation on the Assembly (2, currently). All partners, students, supporters and
alumni collectively form the KIC Community which comes together at least once a year at
the Climate-KIC Innovation Festival. The Community is of vital importance to ensure optimal
integration and leverage across the KIC whilst also optimising our outreach capacity. A
challenge for 2012 and beyond will be to further develop and nurture our Climate-KIC
Community.
We have built on the Simplification project to develop a management structure that is lean
and fit-for-purpose. Overall a small strategic „intelligent‟ centre forms the innovation hub,
while regional management and strategy implementation is embedded in the innovation
ecosystems of the CLC and RIC (details of the Pillar, CLC/RIC and CEO‟s Office are given
in Chapter 5). For all other operations, time-limited Task Forces are and will be used, to
ensure that time is used effectively and that there is no proliferation of committees. Task
Force membership will draw not only the core Executive Team, but also on Governing Board
and Assembly members and on the wider KIC Community, selected according to their
expertise – thus spreading the individual workload and, very importantly, tapping into the
wealth of talent within our membership.
Our senior
management staff are
employed by and
embedded in our CLC,
with the operational
HQ in London,
balanced by other key
services based in
France (Innovation &
Pathfinder); the
Netherlands
(Entrepreneurship,
Finance); the UK
(Education); and Germany (Chair of Assembly and Governing Board). The RIC Director is
based in Brussels, and Climate-KIC‟s office there provides a useful pied-à-terre for liaison
with the Commission and Parliament.
We practice mobility for our governance and our management staff to ensure an
appreciation and understanding of the organisational and cultural differences and challenges
that are experienced by our partners. The Governing Board meets monthly (2-monthly from
2012, following completion of the 2011 set-up phase), rotating around the CLC/RIC.
Similarly, for the Executive Team, in addition to weekly tele-conferences, there are monthly
2-day „garage-days‟ hosted by the CLC/RIC in rotation. This has proved very effective and
we will continue the schemes in future years. Garage Days are used specifically for
Figure 4.1: The Executive Team
24
discussion and implementation of Performance Reports and BP preparation, as well as for
agenda-driven meetings and informal collaborative working sessions.
Overall, execution of the
business plan is driven by
the Pillars, while
implementation is the
responsibility of the
CLC/RIC. CLC/RIC are
allocated a fixed sum budget
for core CLC/RIC
management while Pillar
budgets are held by the
Pillar Directors. Cross Pillar
integration and
empowerment of the
CLC/RIC is achieved via
Pillar funding of CLC/RIC
management and delivery
of Pillar activities. Work
during 2011 has done much to clarify these differing roles, but maintaining a balance in
matrix management is always a challenge. For 2012 it is planned that all CLC Directors will
also have a second central, strategic, role, for example as chairs of one of the Task Forces.
This will ensure that the skills of the highly talented central team are fully utilised and
appreciated.
4.2.2. A Robust Legal and Intellectual Property Framework
A particular challenge, which is true for all KICs, is the development of a robust yet flexible
set of legal agreements to cover not only money flow but also collaborative working. We
have developed a model Partner Grant Agreement (PGA) that governs money flow and
contains robust high level IP elements. This is matched by a model Consortium Agreement
(CA) that covers multi-partner multi-year activities and projects where lower level flexible
solutions to IP can be incorporated. Annexes to the PGA define the specific Climate-KIC
work covered. During 2012 we will further develop these annexes to ensure that they
combine efficacy with a partner-friendly flexible format. It is our aim to minimise bureaucracy
wherever possible; this is crucial to the involvement of our partners, particularly those from
the private sector. The intention is to entrust Climate-KIC‟s IP Board (currently consisting of
seven expert partner representatives) with the task of overseeing this process together with
assuring and validating that all CAs are in accordance with the EIT and KIC IP policies. The
IP Board will re-evaluate the current PGA/CA structure in 2014 when we have gained
sufficient experiences with this model.
4.2.3. Differential Functions of CLC versus RICs
The five CLCs provide the physical innovation ecosystem for the implementation of Climate-
KIC strategy. These form the platform where KIC members can meet and work together
within an environment that gives both physical and intellectual entrepreneurial support.
Although KIC activities must, and do, operate across all CLCs, individual CLCs provide a
vital focal point and communication hub for national Core and Affiliate partners.
Figure 4.2: Matrix management
25
A second, unique, organisation within Climate-KIC is formed by the six Regional Innovation
and Implementation Communities (the RIC). These bring together more than 100 public and
private bodies, some of which are Affiliate partners, while all are involved in KIC activities.
They highlight regional needs and problems while also providing the innovation and
implementation test-beds, and opportunities for people-based programmes. They thus
facilitate outreach and dissemination of innovation throughout Europe such that any new
development can have impact well beyond the initial partners responsible.
An important action for 2012 will be to review the CLC and RIC to clarify and define their
distinctive roles and to build on their differential strengths. In particular, mechanisms must be
developed to link the public partners within CLC with those of the RIC, since it is these
partners who will be so important in developing climate change markets and accelerating the
implementation of innovation.
Governance - Key deliverables for 2012
Task Forces established in: European funding instruments; Engaging big business; Communications strategy; CLC/RIC differentiation of function
Matrix management: lead role for all CLC Directors
Development of the co-ordinated role of Public bodies across CLC and RIC, particularly in the context of market identification and accelerating innovation
4.3. Creating market value chains and global leadership
Climate-change mitigation and adaptation presents not only a formidable societal challenge;
it also offers huge business opportunities for companies able to provide climate change
related products and services. These markets present a unique opportunity for Europe to
capitalise on its first-mover advantage through early action and to enhance its position as a
world leader in these emerging key industries. This market is global, requiring European
innovation efforts to also have a global orientation towards user needs in key markets,
including developing economies. Climate-KIC thus operates in an emerging and highly
complex innovation space that involves a large number of sectors.
4.3.1. Value Chain Creation and Executive Agility
As is typical for all emerging markets, no single entity, public or private sector, dominates a
value chain for particular climate solutions, and there are gaps in many emerging value
chains with the consequence that an innovation within that chain may nevertheless fail in the
market. Forging partnerships between technological innovation start-ups and established
companies is going to be key to penetration of climate-change related products and
services. The public sector must also play an important enabling role for the systemic
innovations that need to be implemented in public-private cooperation.
Europe‟s regions and cities are at the forefront of achieving the European Union‟s near-term
climate and energy goals for 2020 as well as laying the basis for further transformation that
will be needed to meet longer-term targets. They are setting their own distinctive low-carbon
strategies, are committing considerable investments to a range of potential solutions, and
are well placed to promote the transition in systems and practice that will be essential to
achieving these goals. This pioneering role of public entities is crucial to developing test
beds for systemic innovations in cities and regions that can then be replicated by more
hesitant followers in Europe and globally.
26
Climate-KIC‟s „Pathfinder‟ and „Radar‟ projects (Innovation & Pathfinder Pillar) and the newly
developed „Market Accelerator‟ (Entrepreneurship Pillar) are designed to develop processes
that can be applied systemically across the area of climate change and beyond. In tandem
with this, we will establish an annual Strategic Initiative Fund (SIF) such that projects with
exceptionally high potential impact/visibility (Flagship Projects) or that may emerge during
the grant period and that are consistent with our strategic innovation thematic areas and
Focus Area Platforms (Figures 2.3, 5.2) can receive funding mid-year and so avoid delay
and the resultant risk being scooped by those external to the KIC. Such opportunity-driven
funding must be a key component of the innovation process and enhancing the KIC brand.
For 2010 and 2011, the role of the Chair of the Governing Board and Assembly has been
essentially to act as the Chair, although he played a much broader role in Q4 of 2010 and
Q1 2011 during the Simplification project. However, Climate-KIC has taken the decision that
the Chair should play a broader role than this, particularly in the context of „external affairs‟.
For Q4 2011 onwards the Chair will be remunerated for 1-1.5 days per week to carry out
external activities on behalf of Climate-KIC. We are fortunate that the Director of PIK is
willing to take on this role and responsibility and expect this will significantly enhance
Climate-KIC‟s abilities to influence European and global politics in the field of climate
change.
4.3.2. Internationalisation
Climate-KIC‟s „home base‟ is Europe, but the challenges and opportunities that it addresses
are global. International engagement (here meaning outside Europe) is important to Climate-
KIC in four main contexts: a) offering unique test beds and opportunities for collaboration, b)
tapping expertise, c) connecting with the innovation and entrepreneurial hot spots outside
Europe, and d) opening up a massive expansion of potential climate change markets. The
four are interlinked, for example the first two are likely to be prerequisites of the last if
products and services are to be suitably tailored to overseas markets. In addition, Climate-
KIC must of course have good international „intelligence‟ to understand the role of
competitors in terms of products, services and target markets.
However, whatever the opportunities offered on an international stage, Climate-KIC must
first establish itself firmly within Europe - a walk before you run strategy. Nevertheless, it is
important to develop an international strategy so the KIC is well positioned when appropriate
opportunities arise, and this will be initiated in 2012. We will develop clear criteria for
assessment of international opportunities including: fit to the mission and quality of Climate-
KIC; complementarity to the skills, capabilities and facilities of Climate-KIC; capacity within
Climate-KIC to accommodate a new partnership; opportunity costs; reputation and financial
risk to Climate-KIC; ability of the international partner(ship) to deliver. Climate-KIC has
already received informal expressions of interest from potential partners in Asia and North
America and these will be carefully reviewed for their potential.
27
Creating Market Chains - Key deliverables for 2012
Implementation of a Strategic Initiative Fund (SIF)
Establishment of International Task Force for International SWOT Analysis and review
Dissemination strategy
28
5. Climate-KIC Activity Plans 2012-14
Climate-KIC‟s mission is to create an engine for climate change innovation fuelled by
inventive people, fertile ideas and a richly networked community of stakeholders. The
activities we use to accomplish our mission are embedded in the plans of our three Pillars
and these activities are generated and delivered by partners through our key ecosystems –
the CLCs and RIC. In what follows we describe our plans for each Pillar, the CLC and RIC
and how leadership and coordination is imparted through the CEO‟s Office.
5.1. Innovation & Pathfinder
Innovation and Pathfinder projects rally companies, cities and academic institutes around
delivery of new products and services that pioneer new value chains. They build on and
bridge a large array of KIC complementary activities in education, research and
entrepreneurship activities. Our two project types - Innovation and Pathfinder – aim to create
a project pipeline spanning the entire innovation chain including market identification and
development, innovation development, testing and deployment. These projects cover
Climate-KIC‟s thematic areas (Figure 2.3), many being crosscutting given the systemic
nature of the innovation required
to cope with climate change.
Innovation projects create
promising new collaborations and
pioneers new value-chain
configurations, while Pathfinder
focusses on the creation of new
pathways to low-carbon
prosperity by fostering the
conditions for ongoing innovation
(Fig 5.1).
In the period 2012-2014, the
Innovation and Pathfinder project portfolio will be expanded and integrated within the
thematic areas, building on the expertise and excellence of the KIC partners. The current
level of 16 projects will be doubled in 2012. By 2014, a steady state will be reached where a
new set of 20-25 projects will be launched annually. However, these will not be individual
and „fragmented‟, but will build on the foundation of the current project portfolio – developing
integrated platforms of innovation. Innovation and Pathfinder projects have, respectively, an
average duration of 2.5 and 1.5 years, and so have carry-over effects for both work-flow and
budgets year on year.
The development of our Innovation and Pathfinder portfolios thus follows a double path.
High-quality proposals are generated in a bottom-up approach to mobilise the creativity of
our teams. In parallel, a top-down approach is used to define, within each thematic area, 8-
10 Focus Areas of strategic importance to the KIC and to initiate and consolidate the
development of Focus Area Platforms from these. In addition, Flagship Projects emerging
from these will be identified and developed - aimed at profiling the Climate-KIC through
partnerships at international level.
Figure 5.1: The Innovation & Pathfinder pipeline.
Innovative
Products&Services
Market analysis &
scopingprojects
Pathfinder Innovation Pathfinder
Barrier Removal
& Policy projects
Existing
projects, tools, know-how
Market
deployment
29
To meet the above ambitions it is of paramount importance to integrate all complementary
activities that support the Climate-KIC innovation portfolio. An e-tool, Climate-KIC Radar, will
be developed to provide the partners with an overview and database of the areas where
opportunities exist for cooperation. The development of this radar tool will start in 2012, and
this tool will become integral component of what we plan to be an overarching KIC „Market
Place‟.
In the 2012-2014 period we will develop the following offerings:
Strategic Focus Areas and Focus Area Platforms;
Portfolio of Innovation and Pathfinder projects, building on those launched in 2010
and 2011, and launching new ones in the context of the Focus Areas and Focus Area
Platforms identified;
Flagship Initiatives;
Climate-KIC Radar.
The total Innovation and Pathfinder budget for 2012 is 99.6M€ for which a contribution of
11.4M€ from EIT is requested.
5.1.1. Development of strategic Thematic and Focus Areas
Our present project portfolio landscape is based on the four initial themes of the Climate KIC: (i) Assessing Climate Change and Managing its Impacts, (ii) Transitioning to Sustainable Low Carbon Cities, (iii) Low carbon Production Systems and (iv) Adaptive Water Management. However, this initial profile is evolving as a consequence of both top-down strategic considerations and bottom-up developments in terms of high quality new projects proposed - in particular:
Water and energy issues are central and cut cross all themes;
Issues related to spatial and land management gain in importance with particular attention from agriculture, ecosystem services and biorenewable production;
The behaviour and demand of consumers and end-users of innovative tools, critical for market development are also increasingly addressed.
The emerging Thematic Areas are illustrated in Figure 5.2; these comprise: Assessing Climate Change and Managing its Drivers; Water and Energy; Spatial and Land Management; Production and Consumption; Cities and the Built Environment. Within each of these, key Focus Areas have been identified.
PRODUCTION AND
CONSUMPTION
Land, Water &
Ecosystemmanagement
Urban water &
energy
Agricultural
Production Carbon
utilization
Urban user
behaviourUrban planning
tools
ASSESSING CLIMATE
CHANGE AND MANAGING
ITS DRIVERS
Climate
information and impact services
GHG Monitoring,
Reporting & Verification
Biorenewable
Production
Energy&
IndustrialProduction
CITIES AND BUILT
ENVIRONMENT
SPATIAL AND LAND
MANAGEMENT
WATER &
ENERGY
Urban Innovation
PlatformsUrban
mobility
Figure 5.2: Populating Climate-KIC‟s main Thematic Areas with Focus Areas
30
Current projects (2010, 2011) and those proposed for 2012 have been mapped onto these main Thematic Areas and the Focus Areas within them (Table 5.1).
Table 5.1: Innovation & Pathfinder Portfolio Objectives and Climate-KIC Strategic Focus Areas
Focus area Innovation & Pathfinder Portfolio Objectives
Cities & Built Environment
Deliver the systemic innovation necessary to meet mitigation and adaptation targets at different scales and sub-sectors of urban agglomerations. Start involving local authorities on a high level to really deliver transformative changes
Innovation projects encompass urban planning tools for mitigation and adaptation (SmartUrbanAdapt, Energy Atlas), and urban water and energy interfaces (Smart Urban Water, Blue Green Dream, EnerStore, WEC4CC) A
Focus Area Platform is also shaping up around the projects (EUrbanlabs and
Neighbourhood Demonstrators)
Pathfinder projects aim to assess future innovation challenges and identify new demonstration projects to roll-out KIC innovations (RIC Pioneer Cities) and to further scope activities on user behaviour (Smart Enterprising Communities) and on benchmarking cities globally (City benchmarking)
Climate Information and Impact Services
Capitalize on Climate-KICs unique know-how in climate and climate impact modelling to generate service provision for various economic sectors.
Innovation projects create new value chains for sectors impacted by climate change: agriculture (CACHES), energy (E3P) and insurance (OASIS)
Pathfinder projects assess demand of new potential sectors, explore feasibility / options for the development of innovative consultancy vehicles (Climate Services)
Monitoring, Reporting and Verification
Develop a strategy to capture the emerging market of greenhouse gas measurements to verify emissions of cities and regions.
Innovation projects develop and test integrated tools and solutions at regional scale (CarboCount) and progressively integrate knowledge and tools in a variety of contexts (CarbonLab). These are complemented by a more micro-level project on incentivising and monitoring employee‟s emission reduction efforts (Off4Firms).
Land, Water and Ecosystem management
Develop value chains to better manage natural resources and ecosystem services in order to reduce greenhouse gas emissions and increase climate resilience.
Pathfinder projects shape the future innovation projects in this area through investigating financial mechanisms that could enhance water and ecosystem system management (Green Water Credits), improving sustainability and cost effectiveness of water engineering (Eco-Engineer), developing investment strategies in the water sector (WaterInvest) and a virtual market place for delta technologies (DIGIDELTA).
Agricultural Production
Develop technologies, practices and incentive mechanisms to adapt agricultural production to the impacts of climate change and to the required reduction of GHG emissions of the sector
Innovation projects address drought resistance of crops, and improved water management at various scales (Agadapt, AgWaterUse) and innovative land use practices (SustLand)
Pathfinder projects stimulate the preparation of innovation in the areas of metropolitan agriculture, of integrated agricultural land management (Community of Practice for Metropolitan Agriculture.
Biorenewable Production
Contribute to the development of new European industry in the important field of the bio-based economy. Strong focus on start-up generation, acceleration of partner SME‟s growth, development of new value chains.
Innovation projects add value to existing initiatives by building on the state of the art biomass facilities and expertise at CLCs and complement expertise through mobility among researchers (A-BIER, Microalgae Biotechnology Center). Pathfinder projects scope new innovation projects based on integrated biorenewable value chain assessments including land use (A-BIER decision support) and an assessment of different microalgae biorefinery concepts.
31
Carbon Reutilization
Deliver added value by shaping the emerging field of re-using CO2 as industrial feedstock for fuels, chemicals, and materials.
Innovation projects explore and bring to market new products, e.g. by valorising CO2 and heat emissions of industrial waste stream using Azolla (Azolla) or identifying markets and testing products based on CO2-containing polymeric materials (CO2-REST)
Pathfinder projects identify most viable routes through benchmarking analysis (CCR - Carbon Dioxide Reutilization)
Energy and Industrial Production Systems
Develop systemic, integrative solutions for energy consumption and production to reduce the carbon footprint of European economies.
Innovation projects aim developing smart business models to incentivise more efficient end-user energy consumption (EnerVis) and demonstrate the impact of new low-carbon gas turbine concept (Clean-GT).
Pathfinder projects aim at setting up a Climate-KIC innovation constituency in the area of industrial symbiosis (EUR-IS) and identify future projects in this area
5.1.2. Portfolio of Innovation and Pathfinder Projects
The current ongoing portfolio: Climate-KIC currently has a portfolio of 12 Innovation and 4
Pathfinder projects (Annex A1) with a total 4-year value of 75M€. The projects represent a
total commitment of EIT funding of 14M€. One key priority for 2012 is the continued
implementation of these projects enabling us to begin delivering the first tangible outcome
results of our Innovation and Pathfinder activities. Annex A1 provides a more detailed
overview of these current projects.
Innovation & Pathfinder project portfolio (2010, 2011) – 4-year budget impact
Number of Innovation projects initiated 12
Total budget € 72,000 k
Total EIT contribution (distributed over 4 years) € 14,000 k
Impact on 2012-2014 EIT requests € 11,000 k
Number of Pathfinder projects initiated 4
Total budget € 3,000 k
Total EIT contribution (distributed over 3 years) € 1,500 k
Impact on 2012-2014 EIT requests € 1,000 k
Developing the project portfolio for 2012 onwards: Our emerging project portfolio for
2012 has been developed over the past six months in a bottom-up approach with our partner
teams being requested to come together to develop new projects. A special cross-KIC
meeting – the Climate-KIC Ideas Market Place - was organised where project ideas from all
CLC teams could be presented, discussed and connected to build new projects. Of 36
proposals generated, 21 have been selected (Annex A2) after a thorough and stringent
review process (Annex A3). A brief description of these pipeline projects is presented in
Annex A2. The next step is for these to undergo further development and refinement via a
„Work Package zero‟ resulting in a detailed project proposal. This will be further assessed for
a range of key parameters, including quality and KIC added value, prior to progression to the
substantive project. Such checkpoints will ensure that the portfolio is maintained at high
efficacy. In addition, there is sufficient flexibility within the project portfolio and its budget to
enable projects that arise between review cycles (for example the Next Evolutionary step for
Sustainability in building Technologies, NEST, project) to be reviewed and, if rated of
exceptional high quality and strategic relevance, to be initiated; this is essential to permit
32
their timely execution and to avoid losing out to competitors in the field. The Strategic
Initiative Fund will also contribute to the launch of such activities.
During 2012-2014 where Climate-KIC will ramp up its activities (Chapter 2.5), we plan to
initiate each year circa 25-30 Innovation and Pathfinder projects corresponding to a total
commitment of 87M€ of EIT funding over a period of 3 years and cumulated annual business
plan requests worth 57M€. The estimated total value of these projects is 420M€ (see also
Table below). During the period, further action will be taken to balance the portfolio to ensure
integrated platform development to make a real impact in and for Europe.
Over the 2012-2014 period, our project portfolios within the strategic Focus Areas will
therefore be structured along increasingly coherent portfolios, such that these Focus Areas
will evolve into integrated “Focus Area Platforms” (which themselves will be integrated into
cross-Pillar programmes). We will take the first steps in this direction already in 2012.
Pathfinder projects will be used to initiate this platform development. It is anticipated that
these platforms will require structured management in liaison with the Innovation &
Pathfinder team and overseen by the CEO.
The distribution of the ongoing EIT commitments (from previous business plans) and of the
requested 2012 EIT funding is presented in the diagram below together with Key
Performance Indicators for our associated deliveries for 2012.
Innovation & Pathfinder Projects - Key Performance Indicators for 2012
12 new Innovation Projects
8 new Pathfinder Projects
Around 6 Focus Area Platforms explored, 4 established
A more detailed table of KPIs for the Innovation and Pathfinder projects is presented in
Annex A4.
2 i.e. funding requested in a given year to fund the commitments of the previous years.
Years 2012 2013 2014 Total
# of new Innovation and Pathfinder projects
20 25 30 75
Total estimated value € 100,000k € 150,000k € 170,000k € 420,000k
Total EIT new commitments (distributed over 4 years)
€ 22,000k € 30,000k € 35,000k € 87,000k
Cumulative annual requirements (in BPs)2
€ 10,400k € 19,000k € 27,000k € 57,000k
33
5.1.3. Flagship Initiatives
From 2012 onwards, we will also start to identify a small selection of projects from our
ongoing portfolio that have extraordinary high impact and/or visibility potential and will
develop these into Flagship Initiatives. Flagship initiatives must clearly demonstrate the KIC
role and added-value, significantly qualify to help raising the value and visibility of the EIT
Climate-KIC brand on a European and/or global level, create buy-in by high-level decision-
makers from business, policy and academia, and create strategic partnerships with other
internationally profiled organisations.
By their very nature, Flagship initiatives will provide Climate-KIC with strong leverage for
external funding. We aim to tentatively launch two-three strategic flagship initiatives in 2012
for implementation in 2013.
2012 SPEND AND TOTAL OUTSTANDING COMMITMENTS BY FOCUS AREA
The below Figure shows how the preliminary portfolio of 2012 projects (Annex 2) would translate into
2012 spending and total commitments of EIT funds arising for the entire portfolio for 2012 and the
following years under the assumption that all projects succeed in developing a satisfactory full project
description in line with the current expected budget and move to implementation swiftly.
Furthermore, the Figure also differentiates the spending / commitment arising from BP 2011 projects and those from the projects newly initiated under BP 2012. While most focus areas exhibit a continued growth based on already running projects, three focus areas are strongly expanding/being explored in 2012 (Water and Ecosystem Management; Carbon Reutilisation; Energy and Industrial Production).
Cities & Built Environment
Climate Services
Greenhouse Gas Monitoring
Land, Water & Ecosystem Mgt
Agricultural Production
Biorenewable Production
Carbon Reutiliztaion
Energy & Industrial Production
Spending in 2012 (in 1000 €)
789
840
1'047
600
150
378228
950250 700
600
1’347300
1’0401’040
1’110270
1’489700
5’8823’482 2’400
1'573
1'627
1'999
1'200
150
624474
2’550250 2’300
1’200
2’299300
2’8852’885
2’129502
4’1732’600
13’1457’108 6’037
Total commitment* (in 1000 €)
Projects included in Business Plan 2011
New projects
* The total commitment consists of all committed EIT contributions from 2012 onwards
34
5.1.4. Climate-KIC Radar
One focus point for 2012 and the coming years is integration of the KIC project and activity
portfolios across the three Pillars. For Innovation & Pathfinder, this specifically encompasses
(i) research projects that generate knowledge and tools, (ii) implementation projects at local
and regional level by the RICs and local authorities involved in the CLCs and (iii) KIC Added
Value Activities that deliver and stimulate innovation. Significant effort is and will be devoted
to develop an integrated view of our entire portfolio of activities and possible future
innovation opportunities. To this end, a number of activities have started and will continue in
2012:
a database of all existing projects and their relations with the new projects is
progressively being developed and updated;
each new Innovation or Pathfinder project provides a comprehensive picture of the
background projects and resources which the partners bring with a rationale on how
these feed the new project;
the CLCs are developing a full picture of their innovation ecosystem, and where their
strengths contribute most value to the Climate-KIC portfolio;
the RIC elaborate a full picture of their current implementation projects, identified
innovation challenges and possible test beds.
Above mentioned activities will be further developed in support of initiating a Climate-KIC Radar of activities in 2012. The Climate-KIC Radar will be an integral part and tool of an overarching Climate-KIC Market Place and will offer opportunities to the KIC partners to identify opportunities for new innovative projects and partnerships and will help clearly defining the entire scope and amount of KIC activities.
Climate-KIC Radar
Total budget € 320k
EIT contribution € 250k
EIT contribution 2012 € 50k
Key Performance Indicators for 2012
Prepare ToRs and benchmark tools for the “Climate-KIC Radar“ database and report
Develop online tool for Partners to easily search overview of KIC activities
Facilitate the mobilisation of existing resources in a very efficient way for new projects
35
5.1.5. Innovation & Pathfinder Governance and Management
The Innovation and Pathfinder team
structure is shown in Figure 5.3. The
team is charged with the strategic
direction, design, delivery and support
for the Innovation and Pathfinder
activities of Climate-KIC. A key role is
the review and evaluation of project
proposals and project progress, and in
the light of this to provide advice to the
CEO and Governing Board. Thus, in
parallel to executing our projects and
building a strategic portfolio, a crucial
objective is to ensure the quality and
transparency of the processes to help
the partners develop into a community.
Most mechanisms that guarantee
efficiency, transparency and quality are
in place (Annex A3). In 2012, this
foundation will be further refined and
enlarged both in the field of internal
governance and management
mechanisms, and of external advice.
In order to ensure that the Climate-KIC tackles the most important strategic innovation
changes relating to low-carbon prosperity and enhanced climate resilience, we additionally
plan to supplement our internal quality assurance with external experts. Two mechanisms
will be established starting with Business Plan 2012:
External reviews of entire portfolio: An expert group of 6-8 people will be identified
towards the end of 2012 and will be tasked with analysing whether the project
portfolio corresponds to the KIC Partners‟ internal strengths, matches demand and
achieves the desired world-class excellence the KIC strives for. These experts will
originate from the academic, business and public sectors and together cover a large
array of strategic topics and perspectives on innovation and climate change. They
will be suggested by the Executive Team and validated by the Governing Board.
Strategic dialogues: In addition to the above formal reviews, small high-level strategic
dialogues – including with the other two KICs - will be undertaken in order to receive
stimuli for strategic visions in different areas. These will be organised ad hoc at
varying frequencies and will benefit from the contacts of high-level representatives
from our KIC partners, especially the Governing Board and members.
5.2. Education
The Education Pillar‟s mission is to create a richly networked community of inventive and
climate change literate innovators and entrepreneurs. Our plans for the next three years are
to open up seven interconnected education activities that connect students to each vertex of
our Innovation Pyramid (Figure 2.1). The Pillar will create a strong Climate-KIC community,
Figure 5.3: Management structure.
36
which spans the globe and the innovation value chain, creates intelligent purchasers and
providers of climate innovation and scales out the Climate-KIC‟s impact and influence.
We have designed and delivered a potent and innovative educational tool, the Contextual
Learning Journey, which is already creating such a community of entrepreneurs and
innovators. The Contextual Learning Journey is an active arena for learning in the midst of
our Innovation Pyramid and integrates Pillar activities. Students experience climate change
science and innovation at first hand in its environmental, political, social and economic
context and they work in multidisciplinary teams to develop their own innovation ideas for
entry into a business plan competition. This approach to learning in the innovation pyramid is
the model for how students will learn in our Education programmes.
In the period 2012-2014 we will develop and deliver the following new Education offerings:
Masters in Climate Innovation (Scholar‟s programmes);
Doctorates in Climate Innovation (Fellow‟s programme);
A Postdoctoral course in Climate Innovation (Senior Fellow‟s course);
A course in Climate Innovation for external students (Associate‟s course);
Continuing Professional Development Courses in Climate Change (Professional‟s
courses);
E-enabled study materials in climate innovation (Open Source courses);
An Alumni Association (Alumni).
The Scholar‟s and Fellow‟s programmes and Senior Fellow‟s courses are mandatory for
Climate-KIC researchers (at the relevant career stage). They ensure that researchers in our
Innovation & Pathfinder projects are motivated and able to identify and translate innovation
opportunities through our Entrepreneurship tools.
The Professional‟s, Associate‟s and Open Source courses are able to engage a wider
community, beyond our KIC, and generate income for Climate-KIC Education activities. All
participants in Climate-KIC‟s Education programmes and courses and the Pioneers into
Practice will be eligible to join the Alumni Association - an Affiliate partner of Climate-KIC.
The Education programmes and courses are structured to create integration across the
partner community and across career stages, to create a powerful and highly networked
Alumni community out of our „graduates‟. The Alumni
Association, Professional‟s, Associate‟s and Open Source
courses will enable us to scale out our models for the
rapid and effective education of climate innovators and
entrepreneurs and spread the Climate-KIC‟s influence
widely.
The total budget for the Education Pillar for 2012 is €
9.8M with a requested EIT contribution of € 4M.
5.2.1. Shared Provision and Integration
Masters, Doctoral, Postdoctoral and External students
share educational elements as shown in Figure 5.4.
Required elements for each are indicated by a green dot
and available additional elements are indicated with a Figure 5.4: Shared educational elements
37
white dot. The common educational elements that exist between Associates, Senior Fellows,
Fellows and Scholars are used to ensure integration between all students. The Contextual
Learning Journey binds together all of these early stage climate innovation researchers by
ensuring that every journey contains a mix of participants from each of these career levels.
The mix of career stage, cultural background and expertise is an important element in the
success of the Journey. This mix, especially the disciplinary mix, is the key to creating a
community that can deliver systemic climate change innovation.
All of the educational elements are available to partners either free or at cost. We present our
Education offerings below.
5.2.2. Education Programme Overview
Climate-KIC Scholar Programme:
We will create a number of Masters
Programmes that will be compatible
with the EIT label. They will be
structured across two years as shown
in Figure 5.5. The first year
programmes are in core science,
engineering and policy. The second
year is on climate innovation and
brings the students together around
the shared course modules outlined in
5.2.1 above. The programme creates a
thriving multidisciplinary community by
helping students to communicate
across disciplines.
The main component of the second
year will come from the student‟s
project and thesis. The projects can
be an internship, a research project,
an innovation project or a
Greenhouse project (Chapter 5.5).
For the new Masters in Climate
Innovation degree qualification the
student will present a thesis in the
form shown in Figure 5.6.
Scholar Programme Budget Request
Total budget € 2,508k
EIT contribution € 627k
Key Performance Indicators for 2012
Delivery of first wave of EIT labelled Master programmes for 2012 start
Recruitment of at least 80 academically excellent Master students
Uptake of Greenhouse activity by at least 4 student teams
Figure 5.5: Course structuring
Figure 5.6: The Master of Climate Innovation thesis structure
38
Positive feedback from participants
Student project alignment with Innovation & Pathfinder programmes
Climate-KIC Fellow Programme: We will create a Doctoral programme that will be
compatible with the EIT label. Each CLC Education team works with local partners and CLC
Theme Leads to generate PhD projects aligned to the Innovation & Pathfinder programmes.
The CLC teams will work together to create a project portfolio that will contain any or all of
these elements:
multidisciplinary and/or multi-sectoral teams focussed on a climate innovation
challenge;
science, engineering or policy research that is a platform to Climate-KIC innovation;
purposeful cross-national and/or cross-sectoral mobility elements.
Applicants for Pathfinder & Innovation projects who wish to apply for project related PhD
studentships will be included in this process. Students will work on projects that range from
platform science that underpins the activities of Climate-KIC to integrated climate innovation
projects that lead to a new Doctoral form, the Doctorate in Climate Innovation. The thesis of
the latter is as illustrated in Figure 5.6.
Fellow Programme Budget Request
Total budget € 5,017k
EIT contribution € 1,571k
Key Performance Indicators for 2012
Clear progress to delivery of first wave of EIT labelled PhD programmes for 2013 start
Recruitment of at least 45 academically excellent PhD students
Positive feedback from participants
Student project alignment with Innovation & Pathfinder programmes
Climate-KIC Senior Fellow Course: To ensure that the postdoctoral researchers working in
Innovation & Pathfinder projects are equipped to recognise and grasp commercialisation
opportunities that arise in their work for us, all will take part in the Contextual Learning
Journey.
Senior Fellow Programme Budget Request
Total budget € 0k (budget is held by Innovation & Pathfinder)
Key Performance Indicators for 2012
100% attendance by postdoctoral researchers
Positive feedback from participants
Climate-KIC Associate Course: In 2012 we will run the Contextual Learning Journey for
external and business participants. We anticipate that most external participants will
formalise their relation with Climate-KIC by becoming Alumni and hence be constitutive
members of one of our Affiliate Partners. For most of participants the course costs will be
independently funded. We will however reserve seed funds for deserving candidates and to
create leverage for charitable funding of particular participant cohorts, in particular students
from developing countries.
39
Associate Course Budget Request
Total budget € 249k
EIT contribution € 24k
Key Performance Indicators for 2012
Participation by at least 40 Associates
Positive feedback from participants
Clear progress towards the leverage of donation funding for Associateships
Climate-KIC Professional Courses: In 2012 we will co-create continuing professional
development courses with our business and public partners. This will:
Develop one new course type for professional education in line with our partners‟
needs and requirements;
Develop our understanding of what works well in delivering continuing professional
development courses to these sectors.
The latter will form the basis for our development of a vehicle for the commercial delivery of
these courses. Where courses relate to entrepreneurial subjects we will co-develop and
deliver these with the Entrepreneurship Pillar.
Professional Courses Budget Request
Total budget € 157k
EIT contribution € 112k
Key Performance Indicators for 2012
Participation by at least 210 Professionals
Positive feedback from participants
Successful cross-KIC coordination of one new course type
Successful creation of a commercial vehicle to deliver these courses in 2013 Potential for EIT branded education
Climate-KIC Open Source Courses: Open Source plays a key role in maintaining the
network of participants in Education and integrating them within the Climate-KIC community.
In addition Open Source provides educational content and tools from our climate innovation
activities for use by the general public. Open Source will develop or contribute to the
development of the following capabilities:
E-Presence community tools, that include:
o Live broadcasts of seminars, etc. across the KIC
o Multi-site telepresence meetings
o Making the best of any open content available online
o A booking system for these facilities;
Collaborative learning environments, that include:
o Course calendars and announcements
o Access to learning resources
o Integration with community tools such as Facebook etc.;
Requirements development for the Climate-KIC Café – a forum for climate innovator
networking and discussion;
40
Initial collection of publically available learning resources that explore the question of
what climate innovation is.
Open Source Courses Budget Request
Total budget € 437k
EIT contribution € 277k
Key Performance Indicators for 2012
Successful implementation of E-presence community tools
Integration of existing web based tools into the collaborative learning environment
Development of Climate-KIC Cafe to have commenced
Development of public learning resource to have commenced
Climate-KIC Alumni: Climate-KIC alumni include all successful graduates of our courses
(Scholars, Fellows, Senior Fellows, Associates and Professionals) and our Pioneers. Our
alumni will remain active participants in our community after they have completed their
studies through the Alumni Association (initiated in 2011 by the 2010 Contextual Learning
Journey students). Climate-KIC will work with our alumni to create a legally constituted
Alumni Association under Dutch Law. This step will enable us to make the Climate-KIC
Alumni Association an Affiliate Partner of the Climate-KIC.
Alumni Budget Request
Total budget € 60k
EIT contribution € 60k
Key Performance Indicators for 2012
Successful creation and incorporation of the Alumni Association
Agreement on the nature of mutual support and activities between Climate-KIC and Alumni
5.2.3. Education Governance and Management
The Education Pillar team structure is shown here. The team is charged with the strategic
direction, design, delivery and support for the educational activities of the Climate-KIC. We
use a matrix management structure with the CLC axis creating and delivering programmes
Director, Education
0.5 fte
Lead, CLC Education
5 at various fte
Adminsitrator, CLC Education
5 at various fte
CLC Theme Leads
20
Lead, Education Projects
1 fte
Lead, Open Source
0.4 fte
Technologist, Open Source
1 fte
Lead, Professionals
0.2 fte
Advisory Group
Communications & Administrative
Assistant
0.5 fte
Figure 5.7: Education organisation
41
and courses, and the KIC axis being charged with design and coordination.
5.3. Entrepreneurship
The Entrepreneurship Pillar‟s mission is to create economic and societal value by catalysing
and supporting entrepreneurial activity in the Climate-KIC community. We do this through
the creation of an entrepreneurial ecosystem for climate change innovation that spans all our
CLCs, RIC, and partners.
Our Entrepreneurship programme (activity portfolio) currently includes support for early-
stage climate change innovation start ups of the existing business incubation systems of the
Climate-KIC ecosystem. The incubators have specific programmes in place for climate
starters, like our Greenhouse programme, where students and senior researchers can step
aside from their day-to-day job to focus on testing and developing a business model and
plan to commercialise their climate innovation ideas. Start ups that successfully complete the
Greenhouse programme can get access to Climate-KIC grants, apply for office space and
business support in the incubator and attend Climate-KIC entrepreneurship master classes.
CLC‟s are the centres
where we deliver
entrepreneurial support
and services based upon
Climate-KIC labelled
Incubators, Valorisation
Centres and Technology
Transfer Organisations.
Entrepreneurial support
services of the CLCs and
RIC are being created to
drive systematic economic
growth out of the
innovative capacity and
intellectual property that
has been generated from
National and European
research and innovation
programmes. The Entrepreneurship Pillar integrates these capacities and focuses them on
climate change innovations in cooperation with public bodies and private business.
During the period 2012-2014 we will develop and deliver the following Entrepreneurship
offerings via a co-ordinated and networked entrepreneurship platform:
Incubation and support
Business creation
Events and Competitions
Pioneers into Practice Programme.
The total Entrepreneurship budget for 2012 is € 10.2M with a requested EIT contribution of €
6.9M.
Figure 5.8: Start-up to business - where Climate-KIC operates
42
5.3.1. Incubation and Support
Climate-KIC Greenhouse - Stipends, Housing and Proof of Concept: Climate-KIC will
focus on growing a significant number of successful climate start ups that are driven by
student and researcher invention. Climate-KIC supported students and student projects are
designed to engage innovative and entrepreneurial supervisors and students.
Entrepreneurship and Education will organise tailor made events in every CLC to inspire
students to become a climate change start up initiator. The annual Contextual Learning
Journeys are an important generator for ideation and new start ups, and the Greenhouse is
a flexible mechanism that allows such researchers to apply for the time and resources, e.g.
stipends, business coaching and support for proof of concepts, to develop their own
business propositions.
Climate-KIC Incubator Network: A key role
in creating a successful entrepreneurship
programme will be played by our Incubators
and Valorisation Centres. In 2012 Climate-
KIC will develop a validated Climate-KIC
„plug and play‟ approach as standard for each
incubator and this will lead to a Climate-KIC
label on participating Incubators.
We will develop a lively Climate-KIC
Incubator Network. We will empower,
connect and train the Climate-KIC
Entrepreneurship staff of Incubators and Valorisation Centres. In addition Entrepreneurship
will facilitate connections to entrepreneurial ecosystems outside Europe. The Climate-KIC
Incubators and Valorisation Centres will be the default CLC location for matchmaking
events for access to commercialisation investment.
Master Classes: On top of all the resources available at the CLC level we will create a
Master Class series at the Climate-KIC level, aimed at our most promising start ups. The
teachers in these Master Classes will be entrepreneurs with an outstanding track record and
teaching skills. This will be done in collaboration with the Education Pillar.
Figure 5.9: Climate-KIC Incubator Network
43
The Climate-KIC Entrepreneurship Handbook: During autumn 2011, Climate-KIC will
update our existing Entrepreneurship tool set as outlined here and create version two of our
Entrepreneurship Handbook. Every CLC and the RIC will make an action plan to deliver the
2012 business plan that is aligned with the Climate-KIC Entrepreneurship Handbook v.2.0.
Part of our approach is to measure the incubation and technology transfer efforts of our
partners and the overall quality of the innovation ecosystem at the CLC level. We will
benchmark those against the world‟s best performers, to learn where we can find further
room for improvement.
In 2012 Climate-KIC will establish a high level European Advisory board on
Entrepreneurship and Business Creation.
Climate-KIC Entrepreneurship: Incubation and support
Total budget € 5,441k
EIT contribution € 1,980k
Key Performance Indicators for 2012
Delivery of 20 Greenhouse stipends
Delivery of 15 Greenhouse Proof of Concept
Climate-KIC label on 10 Incubators and Valorisation Centres Delivery of a Climate-KIC Incubator Network
5.3.2. Business Creation
SME Vouchers for Climate Innovation: Entrepreneurship supplies SMEs with Climate
Innovation Vouchers to provide them with support to engage with the latest academic
knowledge and high tech infrastructure of the Climate-KIC partners to enable them to
develop innovation and grow their business.
Climate Market Accelerator: Entrepreneurship will launch a Climate Market Accelerator
function in 2012. This core function of Climate-KIC‟s operations is being developed as a
systemic model to accelerate the routes to market for climate change adaption and
mitigation solutions. Major drivers for this are the imperfect and immature market for
responses to climate change adaptation and mitigation and the significant uncertainty that
exists on both the demand and supply sides.
The Climate Market Accelerator is designed to bring together organisations in receipt of
climate change targets (policy or commercial) with suppliers of innovation who are seeking
markets. The programme aims to create business opportunities for Innovation & Pathfinder
projects and climate innovation start ups, and to deliver demonstration and test bed climate
change technology for public and private organisations. This will accelerate and focus the
commercialisation of climate change adaption and mitigation solutions. Leadership is from
the Entrepreneurship Pillar, drawing together elements from all Pillars, and coordinates
delivery of the function at the CLC and the RIC level.
The Climate Market Accelerator is a strategic systemic initiative that will act as a catalyst,
enabling the active removal of barriers and the acceleration to market of hundreds of
innovations over the next 10 years. Our priority will be the commercialisation of the
44
innovations of the Climate-KIC community, but the value added will be well beyond this. The
programme has three areas of focus:
Organisations demanding or buying innovations in the European marketplace;
Organisations supplying innovations;
Activities to accelerate the interface between them.
Climate-KIC Taskforce Business Coaching: An important goal for us is to create useful
climate innovations out of partners‟ existing research programmes. The business and
coaching network already present in CLCs and the RIC will be used as a Taskforce to
provide business coaching to the research teams in our Innovation & Pathfinder projects.
They have already been used successfully in this capacity for our Education programmes.
Climate-KIC Innovation Fund: In 2012 Climate-KIC will start to investigate the possibilities
and decide on the development of a revolving Innovation Fund together with the EIT. This
fund could have easier conditions for start ups and SMEs to invest in infrastructure than
normal Venture Capital.
Climate-KIC Entrepreneurship: Business creation
Total budget € 1,672k
EIT contribution € 1,599k
Key Performance Indicators for 2012
Delivery of a Climate-KIC Taskforce on Business Coaching
Execution of pilots for a Market Accelerator programme
SME Vouchers on climate innovations
Alignment of Climate starters with Innovation & Pathfinder programmes
5.3.3. Events and Competitions
Matchmaking Events: Climate-KIC‟s innovations and start ups will, as the KIC grows, be a
magnet for attracting Venture Capital and other courses of entrepreneurial funding.
Figure 5.10: Climate-KIC Market Accelerator
45
Entrepreneurship will co-organise local and KIC-wide Matchmaking Events to bring together
Climate-KIC partners and related Green Technology Funds and Venture Capitalists.
Sustainable Airports: We will hold a major, high-level Climate-KIC Event on Climate
Change, Sustainability and Innovation for Airports in Spring 2012 led by our partners
Schiphol Airport. The aim of this event is to turn innovative solutions in this arena into
profitable business cases. The event will attract participants from knowledge institutions,
airports and companies worldwide. In preparation, Climate-KIC and Schiphol Airport have
organised a “round table” event in 2011 for key stakeholders to discuss the specific climate
change challenges facing airports and the content of the upcoming event.
Venture Competition: Every year twelve start up companies from the CLC and RIC
community will pitch their business model to a jury of experienced entrepreneurs, finance-
and business people. The objective is to provide these climate change start ups an
international podium to sell their ideas on and for Entrepreneurship to support the best to
become Europe‟s leading firms in providing commercial solutions to climate change.
Open Innovation Slam: In the Entrepreneurship Pillar Climate-KIC will execute experiments
with local open innovation. For example, in 2012 the French and German CLCs will organise
an Open Innovation Slam as a pilot for Climate-KIC. The Open Innovation Slam serves to
raise the awareness of students and young entrepreneurs as well as senior staff of
innovative institutions in the climate innovation field. The participants compete against other
regional teams. The best teams will pitch their idea at a final event and will win attractive and
functional prizes (the winner receives housing for their start up or a stipend in the Climate-
KIC Greenhouse). Climate-KIC will also benefit from this competition by an increased
awareness for its services and philosophy.
Climate-KIC Entrepreneurship: Events and Competitions
Total budget € 980k
EIT contribution € 300k
Key Performance Indicators for 2012
Delivery of the Climate-KIC Venture Competition 2012
Delivery of the Sustainable Airport Event 2012
Delivery of two pilots on Open Innovation Slams in CLC France and CLC Germany
Delivery of 5-10 Match making Climate-KIC Events on CLC and Central level
46
Pioneers into Practice - innovation by mobility: The urgency of the low carbon transition
means that the narrow specialisation of many professional roles is unsuited to the demands
of systemic innovation. Sector specific managers need to become boundary-crossing low
carbon entrepreneurs and change agents. The Pioneers into practice programme is unique
in terms of trying to break down the barriers between these sectors and integrating the
business, university and political axes at regional and European levels.
The Pioneers into Practice programme aims to change the day-to-day practices of climate
professionals with current responsibilities in business, government and research; the
programme therefore has a very specific focus. The professionals have a 3 x 1 month
placements embracing the business, university and political sectors and „European diversity‟.
The programme provides shared mentoring and interactive learning through 2-day
workshops and provides an innovative and entrepreneurial community.
Climate-KIC Entrepreneurship Mobility: Pioneers into Practice
Total budget € 2,000k
EIT contribution € 2,000k
Key Performance Indicators for 2012
Recruitment of at least 150 participants
Competition on Business Plans
5.3.4. Entrepreneurship Governance and Management
The Entrepreneurship team structure is shown here. The team is charged with the strategic
direction, design, delivery and support for the Entrepreneurship activities of the Climate-KIC.
5.4. Climate-KIC Management and Coordination
Climate-KIC manages and coordinates its operations across two dimensions: CLCs/RIC and
Pillars. Doing this is the collective responsibility of the Executive Team, led by the CEO and
overseen by the Governing Board3.
3 The Governing Board is drawn from the Assembly of Association Climate-KIC.
Director
0.5 fte
Entrepreneurship Lead CH
1fte
Entrepreneurship Lead DE
1 fte
Entrepreneurship Lead FR
1 fte
Entrepreneurship Lead NL
Entrepreneurship Lead UK
Entrepreneurship Lead RIC
Management Assistant
0.25 fte
ENT Advisory Group
Figure 5.11: Entrepreneurship organisation
47
5.4.1. CEO‟s Office
The CEO‟s Office is engaged with over-all KIC coordination and operation, financial and
activity governance, communications and strategy development. Staffing and development
of the CEO‟s Office was entirely dependent on successful completion of the Simplification
Project and signing of GA2011 and has therefore been profoundly delayed. A subsequent
review of the overall KIC management and governance structure was approved by the
Governing Board in August 2011 and is now being implemented (see also 4.2). As a
consequence the statutory role of CFO will be subsumed into that of the Director Operations,
a new position created, with full and formal effect by end Q1 2012.
The CEO‟s Office supports the Assembly and Governing Board. For all legal matters the KIC
is supported by Farrer & Co, London, specialists in entrepreneurial businesses and higher
education institutions; Farrers have advised Climate-KIC since initiation of the Simplification
Project in December 2010. For IP Policy and implementation the CEO is advised by an IP
Board. For all financial issues, bank guarantee arrangements and financial reporting the
CFO is supported by the Finance Manager and two part-time colleagues in the Finance
Team.
The CEO‟s Office is currently based at the UK CLC where it enjoys the benefits of full
infrastructure support from Imperial College. In Q4 2011, the KIC operational head office and
UK CLC moved together into new central campus facilities and will develop synergies and
shared facilities during 2012 with the neighbouring Grantham Institute for Climate Change.
CEO‟s Office Budget Request
Total budget € 1,804k
EIT contribution € 1,645k
Key Performance Indicators for 2012
KIC financial and activity governance processes further refined and documented by end Q2
Performance monitoring and measurement system implemented by end Q3
Figure 5.12: CEO Office organisation
48
5.4.2. Communication and Outreach
In 2012 the CEO‟s Office will have a particular focus on communications and outreach.
Professional communication is a vital feature of modern business and of critical importance
to a young and “networked” organisation such as Climate-KIC. Internal communications are
essential for KIC activities and sheer maintenance of the KIC community whereas our
external communication efforts focus on (segments of) external stakeholders. The strategic
challenge of the latter is to build a Climate-KIC profile (brand) in the eyes of the wider public.
This long-term task is underpinned by information and outreach activities linked to our
concrete innovation and education activities, often targeted to interested stakeholders
groups including e.g. potential new partners and collaborators.
Climate-KIC‟s communication activities have been quite adequate since our foundation in
2010 but need significant improvement in terms of depth (strategy), breadth (target groups)
and quality (channels and platforms) in order to match our own ambitions. We have
therefore initiated a “360 degree” external professional review of our entire communications
strategy and expect this project to run well into Q1 2012 (see Annex B). Major
communication activities for 2012 will be to act upon the recommendations, adapt and align
specific suggestions to EIT and KIC circumstances, and to start implementing select key
activities.
Major budgeted communications deliverables for 2012 include:
o Governance, strategies (active/passive; push/pull), templates;
o Website update and relaunch and introduction of e-Newsletter facilities;
o Improved website and introduction of e-Newsletter facilities. The
o Operation of ePresence infrastructure plus delivery/improvement of a broad
range of internal and external communications channels/platforms
o Internal communication governance and channels (including formal
communication to partners, CEO newsletters, confidentiality issues etc.);
o Extranet/community collaboration platform project (requirements specification,
development and deployment) catering e.g. for Innovation Radar and Market
Accelerator (Chapter 5);
o Sharepoint 2010 review and transition project including document management,
storage, archiving and possibly also KIC Performance Scoreboard.
Our major costs for 2012 will therefore be for: implementation of integrated ePresence
infrastructure across 14 CLC/RIC offices and lecture theatres (€515k) and development and
implementation of strategic communication projects (€70k). Both these strategic KIC Added
Value projects were initiated and legally committed to in late 2011.
Climate-KIC‟s more general outreach activities, i.e. the active engagement of external
stakeholders, is a concerted effort carried out notably by the CLCs/RIC and the central KIC
(CEO‟s office and Pillars). Our main focus groups currently include relevant government
entities (notably the European Commission and national authorities in countries where we
are represented), climate-related businesses (notably SMEs but increasingly also major
enterprises) and influential organisations, programmes and individuals with significant or
potential shared interests.
49
We utilise outreach to acquire valuable input to our thinking and use it as a means of
communicating our own ideas, results, and existence. By order of significance over the next
1-3 years, our primary outreach tools will be the following:
People (trained brains): Key staff (KIC and partners), academic associates, alumni,
students, Pioneers into Practice;
CLC events and dissemination activities for local/national audiences;
Climate-KIC conferences (e.g. Innovation Festival open to (select) non-partners,
focused seminar meetings etc.);
Central KIC level bilateral meetings with potential partners and collaborators;
Climate-KIC Alumni Association (through development and support of an ever-
widening community).
Meanwhile, “passive” information dispatches by Climate-KIC and by the EIT - in the form of
communication materials, collaterals, media and marketing activities etc. - will remain a
critical factor for increasing general public awareness and often also a necessary
prerequisite for targeted outreach activities.
Communication and Outreach Budget Request
Total budget € 800k
EIT contribution € 800k
Key Performance Indicators for 2012
Delivery of and action upon our communication strategy review Implementation and integration of ePresence infrastructure
Professionalised and streamlined outreach activities
Systematic mapping of significant global players relevant to Climate-KIC‟s mission
5.4.3. CLCs and the RIC
Climate-KIC‟s ecosystem is created by our five Co-location Centres (CLCs) and our
Regional Innovation and Implementation Community (RIC), in different but complementary
ways. CLCs and RIC play the key role in generating and delivering climate Innovation
Education and Entrepreneurship. CLC and RIC directors work together with Pillar directors in
the KIC Executive Team to ensure coherence and synergy between KIC-level development
and local deployment. Most of the Pillar activities presented in the earlier sections of this
Chapter are delivered in the CLC and RIC, and it is in these key structures that integration of
the Pillar activities – Education, Innovation & Pathfinder and Entrepreneurship - takes place.
Each CLC/RIC is organised according to local requirements but all CLCs are modelled on a
standard functional organisation as shown below. During 2012, the CLCs and RIC will hire
additional staff and refine responsibility areas in order to enhance their service to KIC
partners. Offices and CLC
infrastructure will be further developed
over the same time period. Specific
cross-KIC task forces will be
developed that integrate the various
CLCs‟ office members
(communication, financial, education,
entrepreneurship, theme leads). In
Director
4 CLC Theme Leads
Education LeadEntrepreneurship
Lead
Assistant
/Comms
Deputy Director
/Operations
Figure 5.12: Basic CLC office organisation
50
parallel, networking of infrastructure, for example incubators, will build on unique features of
individual CLC and contribute towards the development of a KIC-wide innovation ecosystem.
The RIC will strengthen and balance its partnership structures in each region to include the
regional government, main city authorities, leading universities and key companies. Through
these structures, the RIC will continue to act as a link between Climate-KIC and a wide
community of professionals and practitioners engaged in implementation activities. As with
the CLCs, it will engage with new and existing companies as well as support the mobility of
people between regions and countries through activities such as the Pioneers into Practice
programme. The public bodies, regional and local government of the Ric will be important
players in the development of the Market Accelerator. The coordination role of the RIC
Director‟s office in Brussels will be strengthened to support the expanding activities by the
employment of additional office support staff.
In 2012, the CLCs and RIC will focus on:
Implementation and early stage operation of Innovation & Pathfinder projects including administrative, management and fund-raising support services to local project leads/teams;
Local mobilisation, support and participation of KIC Education programme activities, notably both existing and the development of new executive and scholars programmes;
Implementation of a major range of Entrepreneurship activities, identification and exchange of best practices across CLCs/RIC;
Integration of the activities of the 3 Pillars (Education, Innovation & Pathfinder, Entrepreneurship) at the local leve
Setting–up long-term partnerships with national and local funding agencies, and establishment of local/regional for co-funding plans;
Development of communication and dissemination tools and events including contributions to central KIC communication activities. Particular attention will be given to SME outreach;
Set-up of financial management support structures for associated partners to ensure smooth cost reporting in close alignment with central KIC financial governance activities.
A special action will also be implemented during 2012 with the objective of integrating and
further improving interactions between CLCs with RIC, and yet clearly retaining the very
important distinctive features of the two organisations. A task force will be set up to advance
this work. Through people mobility, joint events and networking activities these activities will
lead to:
- Exchanging of best practices in terms of ecosystem organisation, structure and outreach;
- Preparing the grounds for development of new integrated projects between KIC partners;
- Identifying existing local projects and activities with KIC added-value potentials which could possibly go into the BP2013 work plan.
CLCs and RIC Budget Request
Total budget € 3,000k
EIT contribution € 2,847k
Key Performance Indicators for 2012
Successful support of Pillar activities at the local level as appraised by CEO
Coordinated and effective communication and marketing as appraised by CEO
51
Successful leadership and management of local ecosystem activities as appraised by CEO
Successful implementation of integrated local management systems as appraised by DOps
6. Financial Plan, Performance Management and Risk Assessment
This chapter outlines the financial plan for the period 2012-2014, describes how
implementation is managed and monitored and in addition provides an analysis of risks that
may impede successful implementation of the Business Plan, including mitigating measures
where possible.
6.1. Financial Plan Table 6.1, below, details the budgets for the activities and projects in the planning period, as
well as the Grant funding request for these. Further detail is provided in the model budgets in
Annex C.
Table 6.1: The Climate-KIC Budget Request.
EUR mln. 2012 2013 2014 2012 2013 2014
1. Education
1.1 Scholar (Masters) programme 2.5 11.9 14.6 0.6 3.0 3.6
1.2 Fellows (PhD) programme 5.0 16.4 24.5 1.6 4.1 6.1
1.3 Associates course 0.2 0.2 0.2 0.0 0.0 0.0
1.4 Professionals (Continuing Professional Development) courses 0.2 0.5 0.8 0.1 0.0 0.0
1.5 Open Source programme 0.4 0.6 0.6 0.3 0.4 0.4
1.6 Alumni 0.1 0.1 0.1 0.1 0.0 0.0
1.7 Marketing 0.0 0.1 0.1 0.0 0.1 0.1
1.8 Management Co-ordination 1.2 1.2 1.3 1.2 1.2 1.3
[1] Education subtotal 9.6 31.1 42.1 3.9 8.9 11.5
2. Innovation and Pathfinder
2.1 Complementary projects 41.0 30.0 30.0 0.0 0.0 0.0
2.2. Innovation projects 47.4 65.8 92.0 8.5 15.2 23.0
2.3 Pathfinder projects 4.0 7.0 8.0 1.6 3.5 4.0
2.4. Strategic project development 0.1 4.1 4.1 0.1 1.5 1.5
2.5. Management Co-ordination 1.2 2.0 2.2 1.1 2.0 2.2
2.6 Innovation workshops and mobility 0.2 0.8 2.0 0.1 0.4 1.0
[2] Innovation and Pathfinder subtotal 93.9 109.7 138.3 11.4 22.6 31.6
3. Entrepreneurship
3.1 Incubation and support 5.4 9.6 11.1 2.0 4.5 5.5
3.2 Business creation 1.7 7.3 8.3 1.6 3.9 4.7
3.3 Events and Competitions 1.0 1.0 1.1 0.3 0.3 0.3
3.4 Pioneers into Practice 2.0 2.3 2.5 2.0 2.3 2.5
3.5 Management co-ordination 1.0 1.0 1.1 1.0 1.0 1.1
[3] Entrepreneurship subtotal 11.1 21.3 24.2 6.9 12.0 14.2
4. Management & Coordination
4.1 CEO office (staff, office and travel costs) 1.6 1.8 1.9 1.5 1.6 1.7
4.2 CLC/RIC offices (Director's office staff, office, travel costs and events) 3.0 3.2 3.3 2.8 3.0 3.2
4.3 Communication 0.6 0.1 0.1 0.6 0.1 0.1
4.4 Finance 0.2 0.2 0.2 0.2 0.2 0.2
4.5 Innovation Festival 0.2 0.2 0.2 0.2 0.2 0.2
4.6 Events 0.0 0.1 0.1 0.0 0.1 0.1
[4] Management & Coordination subtotal 5.6 5.5 5.8 5.3 5.2 5.4
Grand Total 120.3 167.7 210.3 27.4 48.6 62.8
TOTAL BUDGET EIT
Figure 6.1: Budget profiles 2012-2014
52
The increase in spending from 2012 to 2014 is mainly due to the Scholar- and Fellows
Programme taking off (+32.8m 2012-2014), and a rapidly expanding portfolio of Innovation
and Pathfinder projects (+44.4m 2012-2014). Entrepreneurship has a more gentle projected
trajectory; however, this is a conservative estimate that will almost certainly be raised in
2013 and 2014 following the review and development planned during 2012. In addition, the
funding from complementary activities in 2013 and 2014 are very conservative and are also
predicted to be greater than planned following review in 2012 (Climate-KIC task force
established). It must be noted though that the numbers are based on the assumption that
underlying multi-year commitments for projects can be met from the Annual Grants (see also
Chapter 5.1.2), including Grants post 2014 (in the presented Business Plan, commitments
post 2014 for Innovation projects alone add up to EUR 38m).
The co-funding ratio will be carefully monitored based on a Latest Estimate exercise in Q3
2012 as preparation for the BP2013, so that the “target” for 2013 can be set such that the
75% co-funding requirement over the period 2010-2013 (ref. FPA) can be met4.
Co-funding requirements are approx. EUR 93-148m over the period, with the “own
resources” share at approximately 40% over the period. The balance is planned to be
funded by public funders (EU- and National/Regional). Through a deliberate funding
strategy, Climate-KIC should ensure that indeed these funding requirements will be met and
to this end other funding agencies and private parties will be targeted.
Co-Funding Plan: During 2012, Climate-KIC will put in place a detailed and action-oriented
co-funding strategy and communication plan to support planned financial expansion over the
next 5-10 years.
Leveraging funds on behalf of the entire KIC structure is one of the potential key functions of
the Climate-KIC Business Group. Leveraged funds would help not only Climate-KIC added
value innovation activities (as defined by EIT) but all KIC activities required for the value
chain from education and research to deployment of innovation. Such funds would be
leveraged through:
Partnerships with National and European research agencies to ensure that upstream
research required for innovation projects is well funded;
Partnerships with National or European education agencies/ministries to ensure that
education programmes delivering innovators and entrepreneurs are well funded;
Partnerships with Venture capital and other European and global investment funds
which would invest in equity of start ups, spin-offs and innovative SMEs associated
with Climate-KIC and/or generated by Climate-KIC projects;
Partnerships with select international cities and regions which would in particular
support the development of the European platforms and the feasibility of innovation
deployment;
Partnerships with relevant UN and World Bank agencies, schemes and programmes
such as the REDD programme to ensure that the innovative knowledge, tools and
services developed in Europe can benefit the planet.
4 The FPA specifies a co-funding requirement for the period 2010-2013, 2014 falls outside the scope of art 6.1
FPA. Based on the 2010 cost report (to be approved) and the 2011 Latest Estimate, it is expected that some excess co-funding will be available.
53
Subgranting
Subgranting, according to Article 9 of GA2012 will be used for the following categories of
activity: Masters (Scholars) and PhD (Fellows) students, Greenhouse, SME Vouchers and
Pioneers into Practice. The selection criteria used for allocating finance by subgranting are
detailed in Annex E.
Annex III Lump sums and flat rate financing
Climate-KIC does not propose to use the financing tool defined in Annex III for execution of
BP2012.
6.2. Performance Reporting and Financial Governance
Based on the approved Business Plan, the internal Annual Work Plan allocates the budget
of the approved Business Plan to the various activities and projects within the Business
Group (Chapter 2) and specifies deliverables and milestones.
The Grant budget and co-funding requirements are allocated to
the Partners through Partner Grant Agreements (PGAs)
whereas the internal Annual Work Plan is not a vehicle for
financial transaction but merely specifies deliveries inside the
Business Group. The PGA details in annexes the deliverables
of the Partners on project/activity levels. The Annexes are
agreed between the Partners and the Pillar directors (formal
signature of the PGA is by the CEO) as they oversee the
portfolio of the projects and activities and are budget owners for
these.
Monitoring throughout the year is focused on deliverables through regular reviews between
the Pillar directors and (lead) partners/project managers. Frequency and methodology are
determined on a case by case basis (risk based) and are agreed in the PGA or Consortium
Agreement (CA). Pillar directors will have quarterly performance reviews with the CEO. Cost
reporting is integral to the reviews (as a KPI) and otherwise limited to deviation reporting
from activity owners to budget owners. Cost reporting at KIC level (Latest Estimate of Grant
consumption and co-funded expenditure for the year) will be in Q3, as preparation for the
BP+1 planning process and in February for the cost report.
With the allocated Grant fixed in the PGA, the risk of budget overrun is for the partner.
However, the CEO can allocate additional Grant budget based on advice from Pillar
directors (change control, within the limits set by the Grant Agreement). Additional budget for
activities/projects may be found in unallocated budget or expected under-spend on other
activities/projects that may come to light in the regular deliverables review by the Pillar
directors and the exercise in Q3.
Due to the lack of pre-financing for 2010 and the delays in the legal establishment of
Climate-KIC, and serious understaffing resulting from these, development of a KIC
performance scoreboard and related KPIs have not been an executive priority issue for
Climate-KIC until Q4 2011. However, an initial performance scoreboard framework has been
developed and further development is now being initiated. This will make use of external
guidance; but due to budget restriction, the original project with an external professional
provider will not be possible. In parallel, baseline data for 2010/2011 for the core KPIs
Figure 6.2: Levels of financial governance
54
already identified are being established and systematic collection of KPIs are gradually being
introduced in internal activity governance processes for our three Pillars.
Climate-KIC appreciates that a robust and credible system for monitoring and managing
activity performance is required in order to satisfy our own management capabilities as well
as our primary financial contributor, the European Institute of Innovation and Technology
(EIT). Climate-KIC‟s overall performance management requirements can be broken down to
the following tasks and sub-projects planned for delivery over the course of 2012:
Conceptual development of a Climate-KIC performance scoreboard, linked to the
revised EIT Scoreboard:
Development of a performance management platform including recommended
process and governance documentation;
Development of guidelines and templates for the KICs‟ activity planning (business
plans) and reporting phases, including scoreboards and KPIs and linking with cost
reporting measures.
Development of a coherent performance monitoring system is a responsibility of the CEO‟s
Office and the operational management will be trusted to the Senior Executive Assistant
(recruitment pending).
6.3. Risk Analysis and Business Plan Assumptions
Climate-KICs strategic objectives are summarised in Chapter 2 and the totality of activities
and projects proposed by this BP2012 are an important step towards realising our
objectives.
The long term single most valuable asset available to the KIC to realise these objectives is
its reputation. A reputation that attracts and maintains:
Public and private partners with the skills, resources and willingness to contribute to
the challenge of creating economic activity in the area of Climate Change Mitigation
and Adaptation;
Talented staff and students for the KIC;
External funders;
A relation between the KIC and EIT that is based both on contract and pragmatism.
Climate-KIC will build its reputation on delivery of promises in a predictable way.
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Drafting of AWP
Business Plan to
EIT
Throughout the year:
- CFO keeps track of budget commitments made through PGAs
- Regular Deliverables reviews by Pillar Directors at Project/Activity Level
- Quarterly performance review between CEO and Pillar Directors
Latest Estimate
Business Plan to Assembl
y
Performance & Cost
reports to EIT
Business Plan start
Figure 6.3: Business planning and reporting cycle
55
Since Climate-KIC is still in an unstable setup and embryonic development phase (Chapter
2.4.), the paramount acute risks we are facing are the following:
Internal risk: Insufficient executive and control capacities to guide the execution of
the annual business plan;
External risk: Lack and delays of cash liquidity from the EIT, and successive new
requirements imposed by the EIT.
Mitigation: Climate-KIC is working hard to build sufficient managerial and governance
capacity to execute activities of the annual business plan, but will continue to lag behind well
into 2012 due the serious delays in the legal formation of the KIC in 2010-11, and in
particular to the complete lack of pre-finance for 2010. A better alignment of EIT‟s legitimate
expectations and the pace of new measures imposed in relation to Climate-KIC‟s early life
cycle stage and capacity to deliver is required.
Several longer term/generic risks can be identified that may stand in the way of realising the
strategic objectives in general and more specifically the goals of this Business plan, if not
properly managed.
Regulatory risk: In order to be successful the KIC as a partnership requires a predictable
and stable regulatory environment to operate in. This relates very much to the KIC/EIT
Agreements and Guidelines issued on a regular basis. Stability and predictability are
essential because execution of subsequent Business Plans and planning for reporting and
audit requirements are premised on these. Lack of stability as well as onerous reporting and
auditing requirements negatively affect the enthusiasm of especially the Business partners.
The KIC has limited capacity to mitigate this risk other than put in maximum efforts - together
with EIT and the other KICs - to maintain a dialogue about the added value of new
regulations for the EIT and the Partners and the resource requirements to implement new
regulations.
Part of the activities in the Business Plan 2012 is based on the assumption that sub-granting
limits will be raised to 10% of the total budget and to EUR 50k/recipient, which - at the time
of submission of this business plan - is not formally agreed through a Grant Agreement.
Should these limits not be raised in GA2012, this will seriously inhibit execution of the
Business Plan, especially in the area of Entrepreneurship and Education. Partial alternatives
could be found in signing up very small enterprises as Partners (which is not preferable for
both the KIC and the enterprise) or in a Partner incurring expenditure on behalf of the party
that would have been the sub-grantee. The latter would give rise to onerous administrative
effort and risk of non eligibility that may lead Partners to stop supporting the initiatives. A
repeat of the 2010 problems for funding the Pioneers into Practice programme would be
seriously destabilising to the RIC and to the KIC itself.
Financing risk
Grant 2013 and beyond: Practically all Innovation projects and several Education
programmes, span more than 1 calendar year whereas the Grant is based on annual Grant
Agreements. Moreover, any unspent Grant has to be returned to the EIT and is thus not
available to the KIC in the subsequent year. This mismatch makes it impossible for Partners
to make multi-year spending commitments - especially hiring talented project staff - without
assuming the risk of underfunding in subsequent years.
56
This risk is currently partly mitigated through a formal „in principle‟ commitment by the CEO
to Partners that required funds will be available for the planned duration of the project, but
this is only based on the assumption that a fair share of the EIT budget for 2013 (assumed to
be EUR 119m) is available to the KIC and that EIT‟s budget for 2014 and beyond increases
considerably year on year. Should this turn out to be incorrect, then there is a high risk that
projects may be aborted before completion and expenditure to date not yet having
generated any value.
Due to the fact that the approach is based on assumptions outside the control of the KIC:
Commitments will be made to fewer projects than would otherwise be possible to
“play safe” and increase the likelihood that the commitments in future years can be
met;
There may be a tendency for Partners not to start projects at the end of 2012, but
delay and await signature of GA2013. While this reduces funding risk for the
Partners, this delay reduces the chance of commercial success as “time to market” is
an important factor determining the success of innovation projects.
EIT pre-financing of the Grant 2012: Although only 25% of the overall KIC expenditure
until 2014, the EIT budget available as well as its pre-financing is the catalyst to initiate and
start projects and activities in many instances. As per the draft Grant Agreement 2012, 57%
of the budget is available as pre-financing, a considerable reduction versus the 2011
prefinancing. However the requirement for a financial/bank guarantee effectively locks a
share of the available pre-financing until the guarantee is released after the cost report is
approved, which could easily be 1.5 years after the start of the relevant calendar year. It
must be noted that a financial/bank guarantee only serves a purpose if there is a serious
chance that - after review of the cost report - more than 43% of the KIC spend is disallowed
and there is a realistic chance that partners are not able to repay the excess pre-financing.
With pre-financing distributed by the KIC-LE to partners based on Partner Grant Agreements
with clear deliverables agreed with the Pillar directors and each partner having proper
controls in its organisation in general, this chance has to be considered remote.
In addition, the cost to Climate-KIC of every EUR 1m of financial/bank guarantee is
approximately EUR 8k, which could have been spent on Climate-KIC‟s core activities.
The Business Plan 2012 assumes that a comparatively modest financial/bank guarantee will
be required for 2012 and beyond since most Climate-KIC Partners are in no position to kick-
start their activities and projects without considerable pre-financing.
Financing of the EIT Grant 2012 not covered by the EIT pre-financing (43%, plus any
finance „locked‟ to cover the bank guarantee): This is financed out of partners‟ own
resources. It must be noted that the risk of this financing not being available is significant if
the requirement for a bank guarantee in 2012 is not seriously reduced from that required in
2011.
Financing of the co-funded expenditure 2012: For BP2012, the co-funded expenditure is
mostly financed by partners‟ own resources, National Programmes and other European
Programmes (e.g. FP7). The co-funded expenditure from own resources is in many cases
expenditure already incurred by Partners (salaries etc.), but redirected to Climate-KIC
activities, thereby not immediately creating an additional financing requirement. The
57
European Programmes have their financing in place, but the projects are “brought into the
KIC” to act as “carrier” projects for KIC added Value activities.
The risk of this financing of co-funded expenditure not being available is therefore
considered low.
Financing of the co-funded expenditure 2013 and beyond: For 2013 and beyond,
Climate-KIC is working on an overall financing strategy where financing of the co-funded
expenditure relies less on the Partners and more on external financiers. Cooperation will be
sought not only with the EU Development Funds, but also with National and Regional Funds.
An operational and realistic action-oriented co-funding plan to support planned financial
expansion over the next 5-10 years will further help to minimise risks associated with
financial dependence on the EIT as the single external funding source.
In summary, the Climate-KIC response to the above mentioned financing risks is twofold:
Proactive: developing a realistic co-funding plan;
Reactive: “play safe”
making commitments to fewer projects than would otherwise have been
possible
delaying making a commitment and starting a project until signature of the
subsequent Grant Agreement.
In the interest of “time to market”, the latter is clearly not desirable.
Operational risk
Projects and Activities are carried out by Partners in various combinations. Successful
delivery of the products (education courses, Patents, start-up support etc.) is key to the
success and reputation of the KIC. Should there be too many instances of failure to deliver
the agreed end result of Projects and Activities, this will eventually harm the reputation of the
KIC.
This risk is mitigated by Governance structures and processes that ensure clear definition of
deliverables, assessment of feasibility based on a.o. the competences of the Partners
participating in the projects/activities and the quality of the implementation plan, as well as
an agreed monitoring process that should aide the Partners to successfully complete the
projects/activities. Important elements of these structures are the Partner Grant Agreements,
IP policy and various Pillar committees that select and review projects and activities.
Reputational risk
Reputation is key to the success of the KIC and is affected by all of the above. However,
given the high profile that the KIC may eventually have, it is important that the reputation
itself is also carefully managed to seize opportunities arising as well as prevent or manage
unjustified negative publicity. To this end an integrated communication strategy plan will be
drawn up with help of external experts and a dedicated Communications Manager will be put
in place who has as an important task to manage external communication. Several other
Communication initiatives are planned for 2012, such as the launch of a new website
(Chapter 5.6).
ANNEXES
A. Climate-KIC Innovation Project Portfolio (A1, 2011; A2, 2012; A3, Process; A4,
KPIs)
B. Climate-KIC Communications RfP
C. Climate-KIC Financial tables
D. Climate-KIC Scoreboard
E. Climate-KIC selection processes for subgranting