AER DOSSIER N°

Thematic Dossier of the Assembly of European Regions Spring 2012

The economic and environmental crises have highlighted the need for Europe to find innova-tive ways to boost green growth. Eco-innovation is about promoting sustainable development, by mini-mising the impact of environmental damage. It means mobilising technology to make the most of resour ces, and set the groundwork for a more sustainable economy. As the AER stipulates, “Eco-innovation is at the heart of what we call the Europe 2020 stra tegy. It is our chance in Europe to review the way we produce, the way we sell, the way we buy: creating wealth while respecting the environment, taking climate change into account in our energy choices.”

By focusing on eco-innovation, Europe can not only make the most of finite natural resources, it can also help meet the goals of its 2020 strategy and live up

to the vision of a competitive European economy based on smart, sustainable and inclusive growth. It will go some way to maintaining Europe's position as a leader in green technologies, securing a 75% employment rate for 20-64 year-olds, and meeting the target of investing 3% of EU GDP in R&D/innova-tion. A cleaner, greener society also provides se veral non-tangible benefits and can improve the health and wellbeing of Europe's citizens. Projects such as ECREIN+ support eco-innovation, helping regions work together to share best practice.

Amid rising energy prices, an uncertain employment market and population growth that will only exacer-bate resource scarcity, it is more important than ever for Europe to foster eco-innovation. There is no time to waste. |

No time to wasteEurope must support eco-innovation if it is to overcome its economic and environmental challenges

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Eco-InnovAtIon In thE REgIons

www.aer.eu

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Project ECREIN+ was born only two years ago, and yet so much work has already been done, and so many pros-pects are in place for the months and years to come! ECREIN+ is a strong partner-ship, made up of regions that are as geographically diverse as they are close when it

comes to their objectives. It primarily relies on the shared desire to advance policies supporting eco-innovation at all levels of governance.

Placing eco-innovation at the heart of EU’s invest-ment decisions is vital for the future. Cohesion policy, supported by all sectoral policies, should enable all regions of Europe, based on their respec-tive potential, to develop teaching and research, support eco-innovative SMEs and encourage the creation of clusters in their territories in order to develop a truly green economy. The ECREIN+ part-ners are rallying around concrete actions that are targeted at better understanding regional policies in support of eco-innovation in Europe. An overview of these policies is gradually taking shape, thanks to the efforts of all stakeholders.

We have already made significant progress, but much remains to be done. Now we must capitalize on the expertise acquired during our multiple ex-changes. The conference to be held in Lyon in November will be an opportunity to study all these elements. We will then make policy and technical recommendations to the attention of European decision makers to simplify EU policies supporting green innovation and also increase their efficiency.

As vice-president of the region leading this project, I am proud to be a part of this ambitious project that is tackling many challenges. Together we will suc-ceed. After all, this is what Europe is all about. |

Alain Chabrolle Vice President of Rhône-Alpes Regional Council (F)in charge of health and environment

Editorial

…and act green! Our motto, eco-innovation made real

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AER DOSSIER Eco-InnovAtIon In thE REgIons

The European clusters and regions for eco-innovation network plus (ECREIN+) is about helping regions work together to promote eco-innovation across Europe. The project supports eco-innovators as they look at new ways of creating wealth and develop new prod-ucts in an environmentally friendly manner. ECREIN+ succeeds the ECREINetwork, which was founded in 2006 with six regions and was based on the principle of sha-ring best practice on eco-innovation, providing invent ories of available funding instruments. The founding values of the ECREINetwork hold true, but working with AER and increasing the number of regional partners to 12 has dramatically increased the scale of the project. The network, partly funded under the INTERREG IVC pro-gramme, now facilitates the sharing of expertise between regions, and supports environmental investments that make business sense.

Promoting eco-innovationAs the lead dissemination partner, AER has a key role to play in helping regions raise awareness, boost interre-gional cooperation and share techniques on the best way to boost eco-innovation. As well as publicising the work of ECREIN+ via newsletters and press releases, AER also presents the project through various AER events. The

more than 250 AER regions provide a wide network for communication, and AER members are kept up-to-date on the possibilities to cooperate with others. Estelle Delangle, policy coordinator at AER's economy and re-gional development committee, attends as many ECREIN+

meetings as possible to ensure the Assembly remains informed of key project developments. She says, “We are in charge of disseminating the results of the project to a maximum of relevant stakeholders, in particular other European regions. The idea is to make our member regions aware of what can be done at regional level to foster the green economy on their territory and to support eco-en-trepreneurs.” Delangle says the main reason AER joined the project “was the potential for all European regions to benefit from the experience of pioneers in this field”.

Delangle insists that a lot can be done to boost eco-entrepreneurs and SMEs at regional level, from provid-ing grants, to setting up a one-stop-shop for advice and

practical support. Other methods include “investing in the creation of clusters and innovation poles and bring-ing innovation stakeholders together”, which ECREIN+ achieves through the eco-innovation partnership plat-forms in each partner region. ECREIN+ can help regions overcome the challenges they face in fostering green investments in their territories. These challenges vary considerably among regions, but can include little gov-ernmental support, based on short-term economic inter-ests or pressure from the energy lobbies, for example. It can also sometimes be difficult for different actors to work together, with universities, SMEs, research centres, innovation centres and chambers of commerce often situated far away from each other. Another important obstacle is the gap between the research and the mar-ket, making it even more important to foster links between all actors.

Some good practicesDespite these challenges, many regions are taking con-crete action to make eco-innovation a top priority. Take, for example, Stara-Zagora (BG), which produced the first electrical car in the country. For Stara Zagora Chamber of Commerce, participating in ECREIN+ is a chance to learn how other regions are using eco-innovations to tackle ecological problems and promoting regional policies that encourage the development of environmen-tally friendly products and services.

Île-de-France (F) participates in ECREIN+ as part of its efforts to become the first eco-region in Europe over the next decade. The region uses public incentives, subsidies and other financing instruments to foster green R&D, investments and behaviour. The Regional Council of Île-de-France, for example, is implementing 'eco-condi-tionality' grants worth € 80,000 to SMEs that meet a number of eco-conditions.

Another example of good practice can be found in Baden-Württemberg (D). The German region is home to the adjustable hydroelectric plant, by Hydro-Energie Roth GmbH. By using innovative technology, the plant can produce up to 40 per cent more power annually compared to traditional hydroelectric plants. It is low maintenance and can reduce noise pollution by using quiet generators on a common shaft, and the plant's generator technol-ogy can achieve a higher energy output of between three and five per cent, which can be increased by up to 40% when operating with large quantities of water. |

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Participants of the ECREIN+ Conference held in Stara Zagora (BG), June 2011

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BetterTogetherECREIN+ provides a platform for regions to share best practice on eco-innovation

“ECREIN+ can help regions overcome the challenges they face in fostering green investments in their territories”

Project Partners

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The ECREIN+ project includes 12 partners from nine EU countries to help them work together to develop and improve regional eco-innovation policies.

RHônE-ALPES (F)

www.rhonealpes.fr

Rhône-Alpes Regional Council is the lead partner of ECREIN+ and will host the final dissemination conference in November 2012. |

BADEn-WüRTTEMBERG (D)

www.um.baden-wuerttemberg.de

Baden-Württemberg is coordinator of the working group on the assessment of instruments to support eco-innovation. |

AnDALUCiA (E)

www.juntadeandalucia.es

Andalucia is coordinating the content part of the project and the exchanges of best practices. It is also the coordinator of the working group aimed at improving market knowledge of the environmental goods and services sector. |

STARA ZAGORA CHAMBER OF COMMERCE (BG)

www.chambersz.com

Stara Zagora Chamber of Commerce hosted a workshop in June 2011 on Regional best practices in promoting the EGS sector. |

ASSEMBLy OF EUROPEAn REGiOnS

www.aer.eu

Bringing together 254 member regions from 35 European countries, AER is the project’s lead dissemination partner providing a wide network for communication and making stakeholders aware of what can be done at regional level to boost eco-innovation. |

GALiCiA (E)

www.xunta.es

Galicia region is one of the new partners who joined the project in 2009. |

Project Partners

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ROMAniAn MUniCiPALiTiESASSOCiATiOn (RO)

www.amr.ro

The Association of Romanian Municipalities hosted the first ECREIN+ workshop in June 2010. AMR also hosted the AER breakfast briefing entitled : “Greening innovation : does the EU have what it takes.” |

MAŁOPOLSKA (PL)

www.malopolskie.pl

Małopolska is one of the original six members of ECREIN+ when the network started in 2006. It hosted a dissemination conference in Krakow in November 2011. |

COVEnTRy & WARWiCKSHiRECHAMBER OF COMMERCE (UK)

www.cw-chamber.co.uk

With a wealth of experience in supporting companies in the area of eco-innovation, CWCC is well-placed as the UK partner for ECREIN+. |

ÎLE-DE-FRAnCE (F)

www.iledefrance.fr

Île-de-France's participation in ECREIN+ is connected to its strategy to become the first eco-region in Europe within the next 10 years. |

LOMBARDiA (i)

www.regione.lombardia.it

Lombardia is coordinator of the working group on regional policies and tools to support eco-innovation and hosted in March 2012 a workshop on green public procurement. |

UPPSALA (S)

www.regionuppsala.se

Uppsala County Council is one of the partners that joined ECREIN+ in 2009. They hosted the kick-off meeting in February 2010. |

—Interviews

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AER DOSSIER Eco-InnovAtIon In thE REgIons

Rhône-Alpes (F) AER: Why did your region choose to become involved in Ecrein+? Rhône-Alpes: Governments are promoting eco-innovations to fight the finan-cial and economic crisis. They are working to foster the development of new models of growth that can also tackle climate challenges and develop sustainable ways of consumption and production. Since 2006, Rhône-Alpes, along with five other regions, has been engaged in a European platform for exchange and reflec-tion – through the ECREIN project. The project is focused on financial instruments for enterprises in the field of eco-innovation. The willingness to deepen the first results obtained in 2007 made the ECREIN participants apply for a new ECREIN+ project in the framework of the EU-funded programme INTERREG IVC. Considering its previous success, Rhône-Alpes decided to participate again as the lead partner.

AER: What practical work does your region do to promote eco-innovation?

Rhône-Alpes: We undertake a variety of activities to promote eco-innovation. These include financing an environmental management system together with clean, safe and sustainable technologies for 50 enterprises. As a follow-up to the success of our INNOV'R project (a one-stop-shop and financial support mechanism for eco-innovators), a new instrument called “INNOV’R experimentation” was launched in June 2011, in cooperation with other territorial partners. This complementary mechanism aims at speeding up the development of eco-innovations and promote their market access. We also promote eco-innova-tion through the “trophées Rhône-Alpes” prize, which rewards best practice. Other actions focus on improving the ecological footprint of the real estate sector. |

Romanian Association of Municipalities (RO) AER: How do you foster cooperation on eco-innovation between regions? Romanian Association of Municipalities (AMR): Eco-innovation is a priority for the local and regional administration. Innovation and environmen-tal practices need to be mainstreamed in all policies, and public procurement should favour a new and creative approach to ecological goods and services. European regions should share their rich experiences on eco-innovation, helping to inspire those that are less advanced. The regional platforms for eco-innovation that AMR is promoting will bring stakeholders, companies and policymakers to-gether and offer them a framework to develop projects and programmes.

AER: What activities are you organising in relation to eco-innovation?

Romanian Association of Municipalities (AMR): Within the ECREIN+ project, AMR is organising a series of workshops and meetings with the purpose of disseminating good practices and awareness raising about the ambi-tious EU agenda for innovation and environmental technologies. For example, we organised three regional seminars, which gathered the main local and regional actors involved into eco-innovation activities. Participants became familiar with the issue, and there were presentations on the various projects and initiatives for supporting eco-innovation in Romania. |

Île-de-France (F) AER: Why is eco-innovation important to your region? Île-de-France: Our region’s new regional economic development and innova-tion strategy includes the development of eco-innovation. This strategy is based on an analysis of the general economic situation of Île-de-France and corresponds to a 2011-2014 action plan designed to reinforce our competitiveness. Measures include, but are not limited to: using regional aid to support companies in their environmental and social transformation; submitting offers for diagnosis and strategic support through partner organisations; and supporting SMEs in imple-menting environmental management systems. The bonus system also supports companies which practice corporate social responsibility, eco-design processes or life cycle analysis. And we provide financial assistance to SMEs and micro-businesses; develop success stories and support the launch of self-employed status for those starting up companies, promoting creation pathways that provide adequate social protection.

AER: How can regional cooperation via projects such as Ecrein+ boost eco-innovation?

Île-de-France: The participation in ECREIN + gives us the opportunity to share pertinent experiences with another European regions in the field of eco-innovation. It also allows us to present our own best projects and reflect on the best eco- innovation policies. |

Baden-Württemberg (D) AER: What best practice examples would you highlight from your region on eco-innovation? Baden-Württemberg: Every two years, the Ministry of the Environment, Climate Protection and Energy Sector in Baden-Württemberg pays tribute to eco-innovators by awarding the “Umwelttechnik-

preis” (Environmental Technology Price) to excellent and innovative environmental technology products in

four categories. The award is endowed with an award of 100.000€. It highlights eco-innovative products and pro cesses,

with a particular emphasis on energy and material efficiency, emission reduction as well as related measurement, control and

feedback control systems. The award winners are not only chosen with respect to ecological questions. They are pointed out as having a high com-

petitiveness potential and good chances to open up new, strongly growing markets worldwide.

AER: Why is it important to address these issues at regional level?

Baden-Württemberg: Innovations are often related to specific regional environments where different kinds of actors (research institutes, producers, service providers…) can take profit of their physical neighbourhood to design and realise an invention. As the wishes and desires of the potential buyers of such a product, process or service have to be well understood, it is quite advantageous if they live close by. The fact that our region is led by a “green government” ex-presses well that environmental sensitivity is rather high among the population, thereby sending a signal to innovators that eco-innovations may find a fruitful soil here. As the market for eco-innovative products and services is very promising, the government of Baden-Württemberg flanks these developments with well adapted support programs and other measures. |

Photo: Brainstorming outcomes of the ECREIN+ working group in Milan (I), March 2012© AER

Agenda 2012

Workshop of the 3rd Working Group: assessment of instruments supporting eco-innovation 3-4 July 2012 Baden-Württemberg (D)

Crisis summit of the regions 21-22 September 2012 Abruzzo (I)

ECREin+ Project final conferenceas part of POLLUTEC – the International Exhibition of Equipment, Technology and Environmental Services november 2012 Rhône-Alpes (F)

AER contactEstelle Delangle Policy coordinatorCommittee 1 e.delangle@aer.eu +33 3 68 46 00 82

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AER - ARE - VRE Dossier // Eco-innovation in the regions // Spring 2012Thematic Dossier by the Assembly of European Regions (AER)

Director of Publication Pascal Goergen // Chief Editor Francine Huhardeaux // Editor Martha MossAssistant Editors Andreea Spanu and AER Staff // Translation Nicolas Cognard (F), Andreas Gressmann (D) Design and Layout Atelier Poste4 - F-67000 Strasbourg // Printed OTT Imprimeurs - F-67310 Wasselonne Published (in three languages): 6 000 ex. // Reproduction authorised with mention of the sourceMay 2012

AER www.aer.eu // General Secretariat // 6 rue Oberlin - F-67000 StrasbourgTel.: +33 3 88 22 07 07 // Fax: +33 3 88 75 67 19 // E-mail: secretariat@aer.eu Brussels Office // Avenue Louise 210 - B-1050 BrusselsTel. / Fax: +32 2 880 9560 // E-mail: aer.brussels@aer.eu

AER DOSSIER Eco-InnovAtIon In thE REgIons

Useful links:AER website www.aer.eu/main-issues/economic-development/ecreinplus.html

Platform of the European Commission on eco-innovation http://ec.europa.eu/environ-ment/etap/index_en.htm

POLLUTEC http://www.pollutec.com/GB.htm

Driving growth

Eco-innovation can drive the sustainable prosperity that is so crucial to Europe's future. Projects such as ECREIN+ therefore help European regions secure our economic and environmental future. Eco-innovation directly contributes to reaching at least 2 of the flagship initiatives contained in the Europe 2020 strategy: the ‘Innovation Union’ and the ‘resource efficient Europe’.It chimes well with efforts to make European public and private stakeholders turning ideas into jobs, securing green growth, social progress and making Europe glo-bally competitive. The Innovation Union includes more than 30 measures aimed at improving conditions and access to finance for research and innovation, to help turn innovative ideas into tangible products. With this in mind, the strategy aims at increasing investment in R&D up to 33% by the end of the decade.

The EU’s future main financial framework supporting the Innovation Union is Horizon 2020 (Framework pro-gramme for research and innovation), to which eco-

innovation actors can look for project funding. Horizon 2020 supports products and services that contribute to sustainable development. With a budget of €80bn between 2014 and 2020, Horizon 2020 will support

eco-innovation in the regions and beyond, and provide backing for projects that can boost growth and provide the jobs that Europe so desperately needs. Of course, regions will also be able to use structural funds, in particular ERDF (European Regional Development Fund), to implement strategies that support eco-innovators, whether they are green businesses or more tradi-tional enterprises wishing to green their processes or products. |

Europe must support eco-innovation if it is to meet the targets contained in its 2020 economic strategy

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The European contribution to greening innovation policies – AER Breakfast Briefing, Brussels (B), May 2011

“The Europe 2020 strategy aims at increasing investment in R&D up to 33% by the end of the decade”