Eco-innovationinSlovenia

EIOCountryProfile

2014-2015

Eco-InnovationObservatory

The Eco-Innovation Observatory functions as a platform for the structured collection andanalysis of an extensive range of eco-innovation information, gathered from across theEuropean Union and key economic regions around the globe, providing a much-neededintegrated information source on eco-innovation for companies and innovation serviceproviders,aswellasprovidingasoliddecision-makingbasisforpolicydevelopment.

The Observatory approaches eco-innovation as a persuasive phenomenon present in alleconomicsectorsandthereforerelevantforalltypesofinnovation,definingeco-innovationas:

“Eco-innovation isany innovationthatreducestheuseofnaturalresourcesanddecreasesthereleaseofharmfulsubstancesacrossthewholelife-cycle”.

Tofindoutmore,visitwww.eco-innovation.euandec.europa.eu/environment/ecoap

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanCommission.

Eco-InnovationObservatoryCountryProfile2014-2015:Slovenia

Author:DanijelCrnčec

Coordinatoroftheworkpackage:TechnopolisGroupBelgium

Acknowledgments

Theauthorwouldliketothankfortheirvaluablesupportinthepreparationofthisreportto:

MrHinkoŠolinc,theDirectorofEcoFund,SlovenianEnvironmentalFund,

MarinaVovk,Director,ReuseCentreOrmož,

AlešUgovšek,ProjectManager,MSora,

dr.MajaBučaranddr.MetkaStare,CentreofInternationalRelations.

AnotetoReaders

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanUnion.Anumberofcompaniesarepresentedasillustrativeexamplesofeco-innovationinthisreport.TheEIOdoesnotendorsethesecompaniesandisnotanexhaustivesourceofinformationoninnovationatthecompanylevel.

This brief is available athttps://ec.europa.eu/environment/ecoap/slovenia

Tableofcontents

Summary.………………………………………………………………………………………………………………………......1

Introduction...........................................................................................................................2

1 |Eco-innovationperformance…………………………………………………………………………………….4

2 |Selectedcirculareconomyandeco-innovationareasandnewtrends.........................7

3 |Barriersanddriverstocirculareconomyandeco-innovationinSlovenia………………..13

4 |Policylandscape:towardscirculareconomyinSlovenia………………………………………….16

References...........................................................................................................................24

ANNEX:Policymeasuresaddressingcirculareconomyandeco-innovationsinSlovenia……..27

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Summary

Sloveniafacesnumerousopportunitiesandchallengesinthetransitiontowardsacirculareconomyandineco-innovationdevelopment.Ononehand,itisthethirdmostforestedcountryinEurope,abundantwithnatural capital, andendowedwith ahigh level of biodiversityand richnatural habitats.On theother hand, economic and systemic challenges still remain and do not facilitate and encourage thetransitiontowardsacirculareconomy.

TheSlovenianGovernmentsupportstheconceptofcirculareconomy,butthegapbetweendeclaratorysupport and realmeasures for the transition towards a circular economy remains. Themain driverscurrently represent private sector, non-governmental organisations and local communities thatpromoteamoresustainable lifestyleanddevelopeco-innovativeandcirculareconomyproductsandsolutions,mostoftensolelywiththeirownfinancialresourcesand/orEUfunds.

Incomparisonwith2013,Slovenia’srankintheEUEco-InnovationScoreboard(Eco-IS)hasnotchangedsignificantly: in2015,Slovenia ranked16th,oneplace lower than in2013.Nevertheless, Sloveniahasimproved its composite index score: in 2013 Slovenia reached only 74.3%of the EU average, but in2014and2015Sloveniareached90.7%and96%oftheEUaveragerespectively.Inparticular,Sloveniahas improvedin indicatorsonemploymentandturnover ineco-industries,butthismustbebalancedwith the fact that in 2015 the country saw no green early-stage investments. Overall, Slovenia’sperformancehasimprovedandwasclosetotheEUaveragein2015,asindicatedbytheindexof96.

Sloveniancompaniesingeneralarenothighlycompetitiveanddonothaveaveryhighvalueaddedperemployee.Therefore it is crucial for themto join the transition towardsa circulareconomy thathasbegunintheEuropeanUnion.EveninsomeareaswhereSloveniancompaniesareonlysuppliersofrawmaterials or semi-finished products to foreign companies, the measures can provide incentives forentrepreneurs to invest in eco-innovation and environmentally friendly end products, where addedvalueishigher.ThisisessentialforSloveniabecauseofthelowmaterialproductivityandhighenergyintensityofitseconomy(roadtrafficalsocontributesconsiderablytothenegativepicture).

The government has announced circular economy and green development as Slovenia’s strategicobjectivesandithastakenthefirststepsincreatingtheneededpoliticalframework.Theleadingareasfor circular and eco-innovative development remain climate and automotive technologies, efficientelectric equipment and mobility, eco-houses and energy efficiency in buildings, and sustainableconstruction.

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Introduction

Slovenia,oneof the smallest countries in Europewith2million inhabitants, is tuckedbetween Italy,Austria,CroatiaandHungary. It is characterisedbyagreatdiversity in landscape, floraand faunaonaccount of the different climatic and geomorphologic features of the Alpine, Mediterranean andPannonian regions. Its most important natural resources are water, forests, karst landscape andbiodiversity,representingan importantadvantageandopportunityforthetransitiontowardscirculareconomy. Since the 1980s, national campaigns have been focused on this potential, resulting inpoliticalawarenessandengagementforapositivedevelopmentmodel.VariousSloveniancompanieshave developed new products and solutions to their manufacturing processes that represent goodpractices in green business. Besides innovative private companies, non-governmental organisationsandlocalpublicauthorities,whichincreasinglypromoteamoresustainablelifestyleandeco-innovativedevelopment,areimportantdriverstowardsacirculareconomy.

Nevertheless, as in earlier EIO Country Profiles, Slovenia still faces numerous challenges in thetransition towardsa circular economyanddevelopmentof eco-innovations.Ononehand, economicindicatorshaveimprovedsince2013,butontheotherhand,companies,especiallystart-upsandSMEs,still finditdifficulttoaggregatefundsforresearchanddevelopment(R&D),aswellasfordevelopingproduction and market penetration for green products and services. The banking sector is still notflexibleenoughinprovidingtheefficientincentivesandinstrumentsthatwouldencouragecompaniestochangetheirbusinessmodelstowardsmorecircularandeco-innovativesolutions.

Government expenditure on R&D continues to decrease and, in addition to the funds from privatesector (mainly several large leading innovativeenterprises), important sourcesof funding forR&D inSlovenia were funds from abroad. For SMEs in particular, these sources, mostly EU funds, oftenrepresent the only financial driver in developing circular and eco-innovative products and businesssolutions (Ugovšek, 2016). SMEs also point out the gap between the declaratory support of thegovernmenttothetransitiontowardscirculareconomyandthelackofsystemicsolutionsthatwouldfacilitateandencouragethistransition,aswellastheneededfinancialmechanisms.

Despite somepositivedevelopments, an importantbarrier remains inefficient transferof knowledgefrom higher education to the private sector. The system of higher education in Slovenia remainsinsufficiently adapted to the needs of the private sector. Slovenia has an above-average number ofemployees engaged in eco-industries, but their activities and investments do not produce results interms of successful eco-innovations. This discrepancy is largely based on the account of “badconnections between academic research and industry, and the poor transfer of developedtechnologicalsolutionsandproductstothemarket”(SlovenianIndustryPolicy,2013).

In contrast to the last EIO Country Profile on Slovenia, in 2013, it should be pointed out that somedevelopmentshavetakenplace increatingacoherentpolitical frameworkthatwouldencouragethetransitiontowardsacirculareconomyandthedevelopmentofeco-innovations.SloveniahassupportedtheintegratedapproachfromtheEuropeanCommissionto“closetheloop”ofproduct lifecyclesandstimulate the transition towards a circular economy. In October 2015, Slovenia adopted a similarapproachwithitsframeworkprogrammeforthetransitiontogreeneconomy(inSlovene).Ithasbeenset as a strategic guideline, and the government aims to design and implementmeasures to createconditions for more green and sustainable growth and development and to steer the process oftransitiontoagreeneconomy.

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ThecirculareconomyisalsooneofthenineprioritiesofSlovenia’sSmartStrategySpecialisation(S4),which has been coordinatedwith the European Commission. This aims to concentrate developmentinvestments inareaswhereSloveniahas thecriticalmassofknowledge,capacitiesandcompetencesandwherethereisinnovationpotentialforSloveniatopositionitselfinglobalmarkets.TheSlovenianGovernmenthas also set as oneof itsmost importantpriorities thepreparationof a newSloveniandevelopment strategy. The document “Slovenia’s Development Strategy for the period 2006–2013”hadexpired,butanewstrategyalongwithotherrelevantdocuments(expectedin2013)hasnotbeenadoptedtodate.Anewstrategywilldefinekeydevelopmentgoals for2030, followedbyamedium-termactionplan.

Finally,keybarriersremain.Despitetheissuesmentionedabove,theprimaryresourceintensityoftheSlovenian economy remains high, 50% above the EU average (Eurostat, 2016c), and dependant onsubstantial importsofrawmaterials,almost45%in2014(Eurostat,2016d),whiledomesticresourcesremain unused (wind) or underused (biomass, hydro, geothermal, etc.). In addition to longadministrativeprocedures,animportantsystemicchallengeremainsinrelationtothetransportsector,whereanunfavourablemodalsplit,anextremelyhighvolumeoffreighttransport,adownwardtrendinpublic passenger transport, andanabove-average shareof transport in total energy consumptionmeanthatitcontributes50%ofallgreenhousegas(GHG)emissions.

Transitiontoacirculareconomyremainsalong-termprocessandonlycoherentpolicieswithconcretemeasures (including economic policies) will create a stable and predictable investment anddevelopmentenvironmenttofacilitateandstimulatethecontinuationoftheprocessthathasbegun.The transition towards a circular economy has been announced as a Slovenian strategic objective –active partnership and cooperation of all stakeholders will be of key importance in establishing abroadersocialconsensusandanappropriatesupportiveenvironment.

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1 |Eco-innovationperformance

The analysis in this section is based on the EU-28 Eco-innovation scoreboard (Eco-IS) for the year

2015.ViaitscompositeEco-innovationindex,producedbytheEco-InnovationObservatory(EIO),Eco-IS

demonstratestheeco-innovationperformanceofacountrycomparedwiththeEUaverageandwiththe

EUtopperformers.Eco-IS isbasedon16 indicators,aggregated intofivecomponents:eco-innovation

inputs,activitiesandoutputs,environmentalandsocio-economicoutcomes

Figure1EU-28Eco-InnovationScoreboard2015,compositeindex

Source:EIO,2016

Theoverall Eco-IS composite index2015 forSlovenia is96 (Figure1),placingSlovenia16th in theEUrankingofeco-innovativecountries,withDenmark,Finland,andIrelandastheleaders.Incomparisontothe2014and2013scoreboard,Slovenia’scompositeindexhasincreased.Namely,in2014and2013SloveniaperformedbelowtheEUaveragebutwithanindexof74.3in2013and90.7in2014.Sloveniaranked 15th and 16th in 2013 and 2014 respectively (though cautionmust be usedwhen comparing2015and2014indiceswith2013indices,asthescoreboardisbeingreviewedconstantly,andpotentialnewdatasourcestoimprovetheindicatorsinthescoreboardarescreenedineveryroundofupdates).

A detailed view of the five components of the Eco-IS composite index for Slovenia reveals that thecomponent representing socioeconomic outcomes changed significantly, while Slovenia performedsimilarlyin2015intheotherfourcomponentsofthecompositeindexasin2014and2013.

The eco-innovation inputs component reveals that Slovenia improved in government environmentalandenergyR&Dappropriationsandoutlays(asashareofGDP).In2015(basedon2014data),Sloveniareached93%oftheEUaverage,whereasin2013(2012data)ithadreachedonly72%.Onehastonote

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thatSloveniangovernmentexpenditureonR&Dinabsolutetermsdecreased,butthedecreaseontheEU levelwaseven larger.ConsequentlySloveniaperformedbetter (inrelativeterms) in2015than in2013comparedtotheEUaverage.SlightlyworsewasSlovenianperformanceintotalR&Dpersonnelandresearchers (asapercentageof totalemployment) in2015(2014data)comparedto2013(2012data).Nevertheless, in2015Slovenia reached129%of theEUaverage,while in2013 ithad reached138%. As in 2013 (data 2010-2013), Slovenia in 2015 (data 2012-2015) had no green early-stageinvestments.Despite this, Slovenian overall performance in the eco-innovation inputs component in2015(74%)wasbetterthanin2013(70%).

Figure2Componentsoftheeco-innovationcompositeindexforSlovenia,2015

Source:EIO,2016

Theeco-innovationactivitiescomponentofthecompositeindexforSloveniarevealsthat,whilethereare no data on firms having implemented innovation activities aiming at a reduction ofmaterial orenergyinputperunitoutput(thedatafrom2008havenotbeenupdatedrespectively),thenumberofISO14001registeredorganisations(permillionofpopulation)increasedfrom204in2013(2012data)to 206 in 2015 (2014 data). However, the Slovenian index slightly decreased from 98% of the EUaverage to 92%. Consequently, Slovenia performed a little worse in the eco-innovation activitiescomponentin2015(92%)thanin2013(98%).

The eco-innovation outputs component of the composite index reveals, that Slovenia significantlyimproved ineco-innovation-relatedpatents (permillionofpopulation) in2015comparedto2013. In2013 (2010data)Sloveniareachedonly2.5eco-innovation-relatedpatentspermillionofpopulation,whilein2015(2012data)Sloveniareached10.3.Nevertheless,theSloveniancompositeindexin2015was still well below the EU average (55%). Meanwhile, Slovenia performed well in eco-innovation-relatedpublications(permillionofpopulation). In2013(2012data)ithadreached17eco-innovationrelatedpublicationspermillionpopulation, or 193%of the EUaverage,while in 2015 (2014data) it

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reached29.6,or183%oftheEUaverage.Eco-innovationrelatedmediacoverageinSloveniaincreasedmorethanthreefold(from0.05in2013to0.18in2015pernumberofelectronicmedia).However,thisincreasewasslowerthanintheEUasawhole,sotheSlovenianindexinthiscomponentfellfrom72%of theEUaverage in2013 to55% in2015.Overall, theSlovenianperformance in theeco-innovationoutputscomponentin2015wassimilarto2013,i.e.98%or99%oftheEUaveragerespectively.

Theenvironmentaloutcomescomponentofthe indexrevealsthatSloveniahas improved inmaterialproductivity,calculatedasGDPrelativetoDomesticMaterialConsumption,andmeasuredineurosperkilogramme (EUR/kg), according to 2013data. In 2013 (2011data), Slovenia reached84%of the EUaverage, while its performance in 2015 (2013 data) increased to 91% of the EU average. In otherenvironmentaloutcomescomponentsoftheindexSloveniain2015performedsimilarlyto2013.

Energyproductivity,calculatedasGDPrelativetogross inlandenergyconsumption,andmeasured ineurospertonneofoilequivalent(EUR/toe)(2013data),with77%oftheEUaverage,remainedsimilarto the scoreof 76% in2013 (2011data).GHGemissions intensity (measuredasCO2/GDP) improvedslightly. In 2015 (2013 data) Slovenia reached 83% of the EU average while in 2013 (2011 data) itreached80%.Thecomponentonwaterproductivity,calculatedasGDPrelativetoWaterFootprint,andmeasured in euros per cubic metre of water (EUR/m³) (data 1996-2005) has, however, not beenupdated–Sloveniaremainsat60%oftheEUaverage.Overall,Sloveniaperformedslightlybetterintheenvironmentaloutcomescomponentof the index in2015,with78%of theEUaveragecompared to75%in2013.

In the socioeconomic outcomes component of the index a significant change occurred. Exports ofproductsfromeco-industries(asapercentageoftotalexports)in2015(2014data)represented0.59%oftotalexports,whilein2013(2011data)theyhadrepresented0.57%.Nevertheless,Sloveniain2015reached87%oftheEUaveragewhilein2013itreached98%.

A significant change occurred in the employment in eco-industries and turnover (revenue) in eco-industries components of the index. In terms of employment in eco-industries, Slovenia in 2013reached only 15% of the EU average (i.e. 0.11% of total employment across all companies) and theturnover(revenue)ineco-industriesrepresentedonly21%oftheEUaverage(0.09%oftotalrevenueacross all companies). In 2015, however, employment in eco-industries represented 4.63% of totalemployment across all companies and reached 183% of the EU average. Meanwhile, turnover(revenue) in eco-industries represented 3.42% of total turnover across all companies and reached156%of theEUaverage.However,onehas tonote thatdifferentdatabaseswereused in2013and2015andcautionmustbeusedwhencomparingtheseindicators.Nevertheless,thedatabaseusedfor2015hasfarbettercoverageofcompaniesandtheresultsshowthatcomparedtoothercomponentsthisistheoneinwhichSloveniaperformshighest.

However, by comparing the components of the 2015 Eco-IS index for Slovenia, one can see thatSloveniaperformedabovetheEUaverageonlyinthesocioeconomicoutcomescomponent.Moreover,whileSloveniarankedsecondhighest intheEUinthiscomponent, thecountryperformedbelowtheEUaverageinothereco-innovationcomponents,whichleadstotheconclusionthatinSloveniatherewas an above-average number of employees engaged in eco-industries, but their activities andinvestmentswerenot fully/proportionally realised inothereco-innovationcomponents, suchasneweco-innovation-relatedpatentsfortechnologiesandproducts.AsalreadypointedoutintheSlovenianIndustry Policy (2013) this discrepancy ismainly on account of “bad connections between academicresearchandindustry,andthepoortransferofdevelopedtechnologicalsolutionsandproductstothemarket”.

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By comparing the 2015 Eco-innovation scoreboard composite index for Sloveniawith the results for2013onecanconcludethatSlovenia’srankhasnotchangedsignificantly(15thin2013and16thin2014and 2015). Furthermore, Slovenia in 2015 still had no green early-stage investments. Nevertheless,Slovenia’s overall performance improved – in 2013 Slovenia reached only 74.3% of the EU average,whereas in2014and2015 it reached90.7%and96%of theEUaverage respectively.Even thoughacertainimpactcouldbeassignedtoabetterperformanceinindicatorsonemploymentandturnoverineco-industries (change of databases used) it should be noted that Slovenia improved in twocomponents: government environmental and energy R&D appropriations and outlays (from 72% in2013to93%oftheEUaveragein2015)andeco-innovation-relatedpatentsin2015comparedto2013(from2.5to10.3permillionofpopulation).Overall,Slovenia’sperformancein2015improvedandwasclosetotheEUaverage(96%).Nevertheless,opportunitiesforfurtherimprovementsremain.

2 |Selectedcirculareconomyandeco-innovationareasandnewtrends

ThecirculareconomypresentsanimportantopportunityforSloveniatoboosteconomicdevelopmentand employment and decrease its environmental impact. Slovenia is an open economy, largelydependentonEuropeanandglobaleconomicdevelopments.However,Sloveniancompaniesingeneralare not highly competitive and do not have a very high value addedper employee, ormaterial andenergyproductivity.ThereforeitiscrucialforthemtojointhetransitiontowardsthecirculareconomythathasbegunintheEuropeanUnion(Oblak,2016).

In 2014 theMinistry for Economic Development and Technology published results of a survey thatfocused primarily on small and medium-sized companies (SMEs) and their attitudes towards eco-innovationsandeco-design(Glasenčniketal.,2014).Theresultsofthissurveydemonstratedthatmorethan half of participating companies systematically develop human resources in the area of eco-innovations andmore than three quarters of companies follow the principles of eco-design.Whereenterprises develop eco-innovations, they focus primarily on products and not services or businesspractices.Oftheparticipatingcompanies,micro-andsmallenterprisesdevotethelargestshareoftheirrevenues to the development of eco-innovations. In general, participating companies demonstratedthat theyare familiarwitheco-designanddevelopeco-innovations. Furthermore, theyarewilling toinvestineco-designandeco-innovationsinthefuture.

Sloveniancompaniesaremostlysuppliers,andassuchtheyaremoresensitivetonewtrends,includingthe implementation of the circular economy principles, in largemultinational companies. ThereforeSlovenianeconomyandcompanieshavetobeproactive(KoširGodina,2016).AgoodpracticeexampleofacirculareconomydevelopmentinSlovenianbusinessisdemonstratedbythecompaniesSlovenianSteelGroupandPetrolEnergetikaandtheirprojectofexploitingwasteheatfromindustryfordistrictheatinginthecommercialareaandtownofRavnenaKoroškem.Anothergoodpracticeexampleofacircular economy development is the innovative regeneration system ECONYL® that is based onsustainablechemistry.Withthisprocess, theNyloncontained inwaste,suchascarpets,clothingandfishingnets,istransformedbackintorawyarnfornewtextiles(carpetsandgarments)withoutanylossof quality. Both examples show that certain Slovenian companies lead the way towards a circulareconomy. However, a strategic systemic approach is needed (Košir Godina, 2016). Furthermore, in

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order to transition to a circular economy, which is one of Slovenia’s strategic focuses, activepartnerships between all stakeholders are vital. In this respect, political examples and support arecrucialandtheSlovenianGovernmentisawarethatallpolicieswillhavetobesystematicallyadjusted,from tax and fiscal policy to public procurement and research (see more in the Policy Landscapechapter)(GovernmentoftheRepublicofSlovenia,2015).

ReferringtoinnovationareasanalysedandpresentedinpreviousEIOCountryProfilesforSlovenia,theleading areas for eco-innovation remain climate and automotive technologies, efficient electricequipmentandmobility,renewablesourcesofenergy,eco-housesandenergyefficiency inbuildings,sustainableconstruction,andnewmaterials(nanomaterials,biomaterials,etc.).

Inthefieldofclimateandautomotivetechnologies,Hidria,anindustrialconglomeratewhichprovidesintegralsolutions,continuestobeaEuropeanandglobalinnovativeleader.Hidria,whichwasdeclaredthemost innovative company in Europe in 2013,won the CLEPA First Award for Best Innovation inGreenTechnologiesfortheHidriaOptymusPressureSensingdieselenginecold-startsystem.Withthisnextgenerationdieselengine,judgedmostinnovativesolutioninEuropeinthe“GreenTechnologies”flagshipcategoryoftheawards,fuelconsumptionandpoisonousgasemissionswillbereducedbyupto 30% (Hidria, 2016a). Hidria alsowon an award of themost Environmentally Friendly Company inSloveniainNovember2015(Hidria,2015a).InthesectorofefficienthomeappliancesGorenjeremainsaleadingSlovenianandEuropeancompanywithitsfocusoninnovativeuser-andenvironment-friendlyproducts.

Important eco-innovation areas in Slovenia remain energy efficiency in buildings and sustainableconstruction, with several leading companies such as Trimo, Lumar, Knauf Insulation, Riko and alsoSMEsseekingabreakthroughbydeveloping innovativeenergyefficientproducts.GoodexamplesareMSORAandSILVAPRODUKT,twoSlovenianSMEsdedicatedtowoodproductsandwoodpreservationthat in cooperationwith the Biotechnical Faculty, University of Ljubljana, developed an eco-friendlypassivewindowcoatedwithaninnovativepreservativewaxthatsignificantlyreducescracking,whichisthemaincauseforwooddecay(seegoodpracticeexamplebelow).

Thebusiness sector remains tobe thekeygeneratorofR&D in Slovenia. Its share ingrossdomesticexpenditure on R&D (GERD) has been steadily increasing since 2010 (Eurostat, 2015). In 2014, thelargest share of total gross domestic expenditure on R&D was contributed by companies(€608.8million,or68%oftotalfunding).Thenext largestshareofGERDwasthatofthegovernment(€193.9million,or22%oftotal).Another importantsourceof fundingforR&DinSloveniawasfundsfromabroad. In2014theyamountedto€82.5million,or9%of thetotal (StatisticalOfficeRS,2015).However,comparedto2013,companiescontributed€11.8millionmore,whilegovernmentfundswerelower by 23%, or €57.3million. Slovenia thus remains alongsideGermany and Finland as oneof thecountrieswherethebusinesssector,mainlyseveral large leading innovativecompanies,providesthelargest share of gross domestic expenditure on R&D (Umar, 2015). SMEs, however, still find itchallengingtoacquirethefundsneededforR&Dortosetuplarge-scaleproductionandpromoteneweco-productsand/ortechnologies.

A more sustainable lifestyle and energy efficiency continues to be actively promoted by localauthorities,non-governmentalorganisationsandcompaniesinordertoraisepublicawarenessoneco-food,wastemanagement, and traffic emissions. An excellent good practice example represents thecapital Ljubljana that haswon the European Green Capital Award 2016 (see good practice examplebelow).

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HidriaOptymusPressureSensingdieselenginecold-startsystemwithpressuresensors

Description:While thestandardglowplugenables theefficientcoldstartofadieselengine,Hidria'sOptymus Pressure Sensor System is converting it into a core player in future diesel engines thatconstantlymonitortheburn-offprocessinthecombustionchamberandradicallyoptimiseitduringthewholeoperating timeof theengine.OptymusPressureSensormeasures thepressure in thecylinderusing a piezzo-electric pressure sensor transducer and an integrated smart microelectronic ASIC toprocessthesignalwithaccuracy,similartoreferencelaboratorypressuresensors.Thelevelofaccuracyisunprecedentedforglowplugstechnology.Theresultof its integration intoacorrespondingenginemanagementsystemisthereductionoffuelconsumptionandemissionsbyupto30%comparedwithtoday'sstandardsolutions.

Most importantdrivingfactors:OptymusPressureSensingSystemradicallycuts fuelconsumption indieselenginesandsignificantlycontributestohealthandenvironmentalprotection.

Impact it generates: The reductionof fuel consumptionandemissionsof up to30%comparedwithtoday'sstandardsolutions.

Keywords:dieselengine,cold-startsystem,reductionoffuelconsumption,reductionofemissions

Internetlinks:

• HidriawonCLEPAFirstAwardforBestInnovationinGreenTechnologies

• TheSloveniaTimes

Contactsforfurtherinformation:

• ErikBlatnik,Hidriad.o.o.,SpodnjaKanomlja23,SI-5281SpodnjaIdrija,Slovenia,T:+38682028265,E:pr(at)hidria.com

Source:TheSloveniaTimes,2016

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Modernisationoftheelectricarcfurnaceandthenewvacuumladlefurnaceinthesteelplant

Description:Thisprojectrepresentsthe innovationofexploitingwasteheatfromindustryfordistrictheating in the commercial areaand in the townofRavnenaKoroškem,developed jointlyby theSIJGroup,ormoreexactly,byitscompanyMetalRavneandPetrolEnergetika.ItentailstheuseofwasteheatfromthecoolingoftheelectricarcfurnaceatMetalRavne,whichuptonowhasbeenunexploitedand released into the environment via cooling towers. The project is the first in Slovenia to exploitindustrialwasteheatfordistrictheating.ItisthewinningprojectandrecipientoftheEnvironmentally-FriendlyServiceAwardatthe2015traditionalEnvironmentalMeetingofthemagazine“Finance”.Theprojecthasgreatpotentialforfurtherdevelopmentandextensiveimplementation,sinceitisthefirstofitskindinSloveniatosuccessfullyseekoutandconnecttheusersofwasteheatandtodevelopthenecessarytechnicalandorganisationalsolutions,whichisthegreatestchallengeforsuchprojects.

Most important driving factors: The project enables the utilisation of part of the waste heat for adistrict-heatingscheme,whichisusedtoheathotwaterforindustrialcompaniesintheareaandotherconsumersinthemunicipality.

Impact it generates: The project enables a long-term, reliable supply of heat, the beginning of areduction in greenhouse gas emissions in the Ravne area, and makes a significant contribution tosustainable development and the quality of life in themunicipality. The amount of greenhouse gasemissionswillbereducedby1500tonnesperyear,andMetalRavnewillalsosavesomeelectricity,astheburdenofthecoolingsystemwillbedecreased.

Keywords:Modernisationoftheelectricarcfurnace,wasteheat,districtheating

Internetlinks:

• SIJGroup

• Petrol.si(inSlovenian)

• oe.finance.si(inSlovenian)

Contactsforfurtherinformation:

• SamoLečnik,samo.lecnik@sij.si,+38612429884,SkupinaSIJd.d.,Ljubljana,Gerbičeva98,1000Ljubljana

• M.A. Aleksander Salkič, aleksander.salkic@petrol.si, +386 1 47 14 581, Petrol d.d., Ljubljana,Dunajska50,1527Ljubljana

Source:Sij.si

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WINTHERWAX–WINdowbasedonTHERmallymodifiedwoodwithhighperformanceWAXcoating

Description:MSORAandSILVAPRODUKT,twoSlovenianSMEsdedicatedtowoodproductsandwoodpreservation in cooperation with the Biotechnical Faculty, University of Ljubljana, developedWINTHERWAX,apassivewindowmadeoutofNorwayspruce(Piceaalba).ThermallytreatedwoodisprocessedthroughtheuniqueSILVAPROpatentedprocess,andcoatedwithaninnovativepreservativewax.ItisthewinningprojectandrecipientoftheEnvironmentally-FriendlyProductAwardatthe2015traditionalEnvironmentalMeetingoftheSlovenianmagazine“Finance”.

Most important driving factors It is eco-friendly (including its innovative coating,which is a uniquebiocide-free wax that reduces cracking which is the main cause for wood decay), and with a highaestheticvalue (thetranslucentwaxallowsthisproduct topreservethenatural lookof thewood, incontrasttocurrentoilsandvarnishes).

Impactitgenerates:Acost-effectivewoodenpassivewindowishighlydurable(class1,morethan25years fullyexposed in theenvironment)and itprovidesanexcellent thermal insulation,beinghighlyenergyefficient(Thermaltransmittance=0,09W/m2K).

Keywords:woodenpassivewindow,thermalinsulation,energyefficient

Internetlinks:

• Wintherwax.si

• ExecutiveAgencyforSMEs

Contactsforfurtherinformation:

• MSORAd.d.,dr.AlešUgovšek (projectmanager),ales.ugovsek@m-sora.si,+38631611059,Trgsvobode2,4226Žiri,Slovenia

• Silvaprodukt,GregorRep,gregor.rep@silvaprodukt.si• UniversityofLjubljana,Biotechnicalfaculty,DepartmentofWoodScienceandTechnology,prof.dr.

MihaHumar,miha.humar@bf.uni-lj.si

Source:Wintherwax.si

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ECONYL®RegenerationSystem

Description:TheinnovativeECONYL®RegenerationSystemisbasedonsustainablechemistry.Withthisprocess,theNyloncontainedinwaste,suchascarpets,clothingandfishingnets, istransformedbackinto rawmaterial without any loss of quality. The creation of ECONYL® products is actually “wastepositive”. Thismeans the amount of waste removed from the earth is greater than the amount ofwaste resulting from production. On top of that, the production has a low environmental impactbecausetheconsumptionofnaturalresourcesandenergyislimitedtoaminimum.

The Slovenian company Julon that belongs to Aquafil Group and is the heart of the ECONYL®RegenerationSystemwasawardedbytheSlovenianmagazine“Finance”in2014.AquafilalsowontheItalianRadicalGreen2016AwardduringtheGreenWeekforitseffortsinimprovingthesustainabilityofitsprocess,especiallyfortheECONYL®RegenerationProcess.

Mostimportantdrivingfactors:theregenerationofNylon6wasteintoyarnfornewtextiles(carpetsand garments) and the reduction of the amount of global waste by collecting it from landfills andoceansandfeedingitbackintoproductioncycles.

Impact it generates: For every 10,000 tonnes of Econyl® Caprolactam 12,600 tonnes of waste iseliminated,70,000barrelsofcrudeoilsaved,42,000tonnesofCO2-equivalentemissionsavoidedand865,000GJoftotalprocessenergysaved.

Keywords:wasteregenerationsystem,nylon6,caprolactam

Internetlinks:

• JulonawardedwithSlovenianenvironmentalawardfortheECONYL®RegenerationSystem

• Econyl

Contactsforfurtherinformation:

• MariaGiovannaSandrini,BrandManager,mgsandrini@econyl.com

• SAMARACROCI,ProjectManager,scroci@econyl.com

Source:Econyl.com

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3 |Barriersanddriverstocirculareconomyandeco-innovationinSlovenia

In2013manifoldbarriers to thedevelopmentofeco-innovations inSloveniawere identified.Ononehand, someof themwereperceivedas constraintsderiving from theglobal economic recessionandbanking crisis. On the other hand, themajority of barriers were primarily derived from the currentstateoftheeconomyandpoliticaldevelopmentsinSlovenia.Since2013someimportantchangeshavetaken place, however various systemic barriers to eco-innovation and transition towards a circulareconomystillhavenotbeenovercome.

Sloveniaisasmallandopeneconomylargelydependentontheinternationaleconomicenvironment.The European common market represents an important opportunity for eco-innovations thatotherwisewould not be realised due to the small nationalmarket,which often lacks sufficient eco-relateddemand.Inthelasttwoyears,growthoftheeconomywaspositiveandexternaltradein2015wasthehighestsinceSloveniajoinedtheEUin2004–comparedto2014Slovenia’sexportsincreasedby4.4%andamountedto€23,942million(SORS,2015b).“MostSlovenianexportersaresuppliers,andso they are forced to change in accordancewith theirmain customers, while those companies lessdependent on export, are not so opened to sustainable businessmodels” (Košir Godina, 2016). Themain drivers of circular economy and eco-innovation in Slovenia remain several large enterprisecompaniesthathaveaccumulatedsufficientfinancial,technical,andhumanresourcestoinvestinR&Dandtopromoteanddevelopsustainableandeco-innovativeproductsandservices.

Ononehand,theshareofbusinessenterprisesectoringrossdomesticexpenditureonR&Dhasbeensteadilyincreasingsince2010,whileontheotherhand,governmentfundshavetendedtodecrease(in2014 they were lower by 23% compared to 2013). As the banking sector is not flexible enough inproviding the efficient incentives and instruments thatwould encourage companies to change theirbusinessmodels,animportantsourceoffundingforR&D,especiallyforSMEsthatoftenfinditdifficultto access much needed funds for R&D in general, are funds from abroad (largely EU funding).Moreover,forSMEstheEUfundsandpoliciesoftenrepresenttheonlyfinancialandpoliticaldriverfordevelopingcircularandeco-innovativeproductsandbusinesssolutions(Ugovšek,2016).

Privatesectorandsomespecificbusinesses,suchassocialentrepreneurship,havepointedoutasthemain barrier in the transition towards a circular economy a lack of financial incentives. They note a“hugegapbetweenadeclaratoryanddefactosupporttocirculareconomy(Vovk,2016)”.Socialandgreen entrepreneurship such as Re-use (see good practice example below) has an important social,environmental and financial impact. However, on account of its specificity it cannot create a stablebusinesssolelyonthebasisofmarketrevenues.Asitsimpactsgobeyondthefinancialdimensionthegovernmentshould, inorder to facilitateandencouragesuchgoodpractices,promoteandstimulatetheefficientuseofresourceswithadequatefinancialmeasures.

Animportantbarrierforthedevelopmentofcircularandeco-innovativeproductsandserviceshas inmanycasesbeentheSlovenian“ruleofthelowestprice”inpublicprocurement,which“favourspriceover quality and in majority of cases rules out green and sustainable solutions since they cannotcompetesolelyon thebasisofprice”. Inmanycases“circulareconomyactivitiesandeco-innovationarearesultofsolelyenthusiasmandself-awarenessofcompanies”(Ugovšek,2016).

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Another important barrier to a shift towards a circular economy has been a lack of information,knowledge and targeted communication. “Many companies, and even some government structures,stillseethecirculareconomyasamovementpromotedbyNGOs,primarilyrelatedtorecycling”(KoširGodina,2016).Furthermore,inefficienttransferofknowledgefromhighereducationtoprivatesectorhasalreadybeennotedasabarrierinthepast.ThesystemofhighereducationinSloveniais,accordingtotheprivatesector,insufficientlyadaptedtotheirneeds.SloveniahasahighnumberofresearchanddevelopmentpersonnelemployeddirectlyinR&DcomparedtotheEUasawhole(1.46%ofthelabourforcein2014comparedto1.14%intheEUaverage)(Eurostat,2016b)andanabove-averagenumberof employeesengaged in eco-industries.But their activities and investmentsproducebelow-averageresults (e.g. newpatents for technologiesandproducts) (seeFigure2.2). “Thisdiscrepancy ismainlyduetobadconnectionsbetweenacademicresearchandindustry,andthepoortransferofdevelopedtechnologicalsolutionsandproductstothemarket”(SIP,2013).

Nevertheless, one has to note that Slovenia increased eco-innovation-related patents in 2015compared to 2013. It also performed well in the eco-innovation-related publications and eco-innovationrelatedmediacoverageincreased(thoughslowerthanintheEU),indicatingapositivetrendrelatedtothedevelopmentofknowledgeanditsgeneraldissemination.AsalreadyreportedintheEIOCountryProfilefor2013,abaselineconsensusonthegreenagendainSloveniansociety,andpoliticaland business communities continues to grow. The media (domestic and international) plays animportant role in positively influencing Slovenian society in adopting a more sustainable lifestyle.Another important driver comes from non-governmental (environmental) organisations, local publicauthorities andprivate companies,which increasinglypromote amore sustainable lifestyle andeco-innovative development. A good example is the capital Ljubljana, theGreen Capital of Europe 2016(seeGoodpracticeexample). Its greenpolicy is reflected in the city’s greenpurchases (representingmorethan70%ofallcityinvestments),forexample.

Animportantbarrierthathadbeennotedinpreviouscountrybriefshasbeenthelackofanintegratedpolicy or framework focusing on eco-innovations in Slovenia. Moreover, the adoption andimplementationoftheneededlegislativeandnon-legislativeactshasbeenlaggingbehind,alongwiththe lack of any capacity to take collective political action towards more green and eco-innovativepolicies. Another important barrier pointed out by the companies in the past had been long andinefficientadministrativeproceduresandthelackoffinancialincentives.However,withtheelectionofanewgovernmentsomedevelopmentshavefinallytakenplace(seeSection4onthepolicylandscape).

InSeptember2015,Slovenia’sSmartStrategySpecialisation(S4)wasadopted.Thecirculareconomyisoneof itsnineprioritiesanditshouldconcentratedevelopmentinvestments inareaswhereSloveniahasacriticalmassofknowledge,capacitiesandcompetencesandwherethereisinnovationpotentialfor positioning Slovenia in global markets. In October 2015 “the Framework programme for thetransitiontogreeneconomy”wasadopted–itrepresentsasimilarapproachtothecirculareconomy.

Thegovernmentaims todesignand implementmeasures tocreateconditions foramoregreenandsustainable growth and development and to steer the process of transition to a green economy. Aworking group led by the Ministry of Environment and Spatial Planning has invited all interestedstakeholders (local communities, public sector, NGOs and universities) to join in monitoring andfacilitating the implementation of the Framework programme. Various workshops and conferenceshavebeenorganisedtoaddresschallenges,representgoodpracticesandpromotethetransitiontoacirculareconomy.SomeSloveniancompaniesandespecially localcommunitieshavebeenveryactiveandhavealreadyinitiatedorproposedplanstocooperateorcoordinatesustainablegoalsandprojects.

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Finally,theSlovenianGovernmenthassetasoneofitsmostimportantprioritiesthepreparationofanewSlovenia’sDevelopmentStrategy.TheSlovenianPrimeMinisterCerarnotedthat theconceptofcirculareconomy,if itbecomesthefoundationofSlovenia’sLong-TermDevelopmentStrategy,would“guarantee the needed social consensus and the establishment of an appropriate supportiveenvironment”.Sloveniahasatitsdisposalabundantnaturalresources,especiallybiomass,geothermalandhydroenergy,which,however,remainunderusedornotusedinasustainableway.

IfinthepasttheEUfundsandpoliciesoftenrepresentedtheonly,oratleastthedecisive,impetusin“greening” of Slovenian policies, it could be optimistically noted that Slovenia has started to pushforward some initial steps that could in future lead to a paradigm shift in Slovenia’s economy andpolitics. As stated already in the Slovenian industrial policy from 2013: “measures can provideincentives for entrepreneurs to invest in eco-innovation and environmentally friendly end products,where added value is higher. This is essential for Slovenia because we have a problem due to lowmaterialproductivity(theratiobetweenGDPanduseofresources)andthehighenergyintensityoftheeconomy (road traffic also contributes considerably to the negative picture).” Initial developmentshavestarted,butpoliciesandmeasuresremaintobeimplementedinalong-termprocessthatwilllastbeyondthegovernmentcurrentlyinoffice,andmanysystemicobstaclesspecificforSlovenia,suchaslongandinefficientadministrativeprocedures,remaintobechallengedinfuture.

4 |Policylandscape:towardscirculareconomyinSlovenia

A look back to the EIO Slovenia Country Profile in 2013 reveals that Slovenia was significantlyinfluencedbypoliticalchanges,thechallengesofconsolidatingpublicfinancesandthesearchforshort-termsolutionsregardingtheeffectsofthepersistingfinancialandeconomiccrisis(OECD,2013),whichwasposingseriouschallengestocatchingupwiththerestoftheEU.Theadoptionandimplementationof key strategic andoperationaldocumentswas laggingbehindandSloveniawas facingproblems inadjusting its regulative framework to EU legislation, aswell as in implementing it. Slovenia had alsofailedtoadoptaspecificpolicytoaddresseco-innovations.ThepoliciesaimedatpromotingR&Dhadnothadanydedicatedfocusoneco-innovationatthatpoint.Moreover,someareasofenvironmentalpolicy,eco-innovationsinparticular,werecompletelyneglected.

Somepositivedevelopmentshavetakenplacesincethen.Anewgovernmentwaselected inautumn2014 and the Slovenian economy has been growing in 2014 (3.0%) and 2015 (2.9%). Slovenia haswelcomedtheEU’sCircularEconomyPackageandactionprogramme,whichshouldstimulateEurope‘stransitiontowardsacirculareconomy.SloveniaagreeswiththeidentifiedkeyareasandpriorityactionsectorsandinMarch2016theMinisterforEnvironment,IrenaMajcen,stressedattheEUEnvironmentCouncilthatinorderto“establishacirculareconomytheexistinglegislativeframeworkattheEUlevelshouldbeimprovedordevelopedincertainfields.Throughthisclearandlong-termsignalsshouldbegiven to theeconomyandother stakeholders for their future conductand investments. Indoing so,cost efficiency and national specifics for implementing individual measures should be considered.Sloveniabelievesthatallproposedmeasuresshouldprovidefeasibilityinthegiventimeframe,clarity(for example, harmonised definitions of waste, secondary data sources), and consistency amongdifferentpolicies.ToincreasetheEU’scompetitivenessatthegloballevel,thesecondaryrawmaterials

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market should be strengthened and the circular economy concept promoted at the global level”(Ministryoftheenvironmentandspatialplanning,2016).

However,generalsupportdoesnotautomaticallytranslateintosupportofalllegislativeproposalsthatwillfollowinfuture–“Sloveniawilladoptitspositioninregardtofuturemeasures”(TheGovernmentof theRepublic of Slovenia, 2016). These should take into account their impact on competitiveness,including additional administrative requirements, in particular for SMEs. Slovenia believes that alllegislativeandnon-legislativemeasuresshouldconsidertheirfeasibilityinagiventimeframe,aswellas clarity and consistency between various policies (i.e. balancing economic and environmentalaspects), theprinciple “think small first” (meaning the smallestpossibleadditionalburdenshouldbecausedforSMEs)andhowtomaintaininternationalcompetitiveness.

Slovenia supports the integrated approach from the Commission to “close the loop” of productlifecyclesandstimulatethetransitiontowardsacirculareconomy.AsimilarapproachwasadoptedbySlovenia in October 2015 with the Framework programme for the transition to a green economy(Framework Programme for The Transition to a Green Economy, 2015) (in Slovene). It was set as astrategicguidelinerepresentinganopportunity for thedevelopmentofnewgreentechnologies, jobsandthepromotionofSlovenianknowledge.Sincethetransitiontoagreeneconomyrequiresachangeof current production and consumption models, the government aims to design and implementmeasures set in the Framework programme to create conditions for a more green and sustainablegrowth and development and to steer the process of transition towards a green economy. Theproposedmeasurescovertheninefollowingareas:sustainableresourcemanagement,greengrowth,green jobs, green products and services, green tax reform, sustainable urban development, greenpublicsector,greeneconomy,andgreenpracticesinagriculture.

Thecirculareconomy isalsooneof thenineprioritiesof theSlovenia’sSmartStrategySpecialisation(S4). It is a common strategy of the government, the business sector, as well as industry, researchorganisations and civil society, which have defined for the first time that Slovenia should improvecompetitiveness on the global market by increasing the extent of knowledge and technologies inSlovenia’s exports, increase the share of high-tech intensive products in exports and the share ofexportedserviceswithahighshareofknowledgeinallexports.ThatwouldhalvethelagbehindtheEUaverage and increase entrepreneurial activity to at least the EU average (Ministry of EconomicDevelopmentandTechnology,2015).Slovenia’ssmartspecialisationshouldconcentratedevelopmentinvestments inareaswhereSloveniahas thecriticalmassofknowledge,capacitiesandcompetencesandwherethereisinnovationpotentialforplacingSloveniawithinglobalmarkets.

S4 is an implementation document related to the already-adopted strategic documents and itaddressesallfourobjectivesundertheexistingSlovenia’sDevelopmentStrategy(covering2006-2013)forwhich Slovenia has already identified three key field-specific strategies (Research and InnovationStrategyofSlovenia2011-2020,SlovenianIndustryPolicy(SIP)andDigitalAgenda.1

In the Slovenian Industry Policy (2013) it has been recognised that “even in some areas whereSlovenian companies are only suppliers of raw materials or semi-finished products to foreigncompanies, measures can provide incentives for entrepreneurs to invest in eco-innovation andenvironmentally friendly end products, where added value is higher.” This is essential for Sloveniabecauseithasaproblemduetolowmaterialandenergyproductivity(theratiobetweenGDPanduse

1On10March2016theSlovenianGovernmentadoptedtheInformationsocietydevelopmentstrategyuntil2020(inSlovenian)whichaimistodevelopandadvancedigitalsocietyandmakeSloveniaareferentialcountryforinnovativedigitalsolutions(MinistryofEducation,ScienceandSport,2016).

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ofresources)andthehighenergyintensityoftheeconomy(roadtrafficalsocontributesconsiderablytothenegativepicture).

According to the document, the “S4 strategic objective is sustainable technologies and service for ahealthylifeonthebasisofwhichSloveniawillbecomeagreen,active,healthyanddigitalregionwithtop-levelconditions fosteringcreativityand innovation focusedon thedevelopmentofmedium-andhigh-leveltechnologicalsolutionsinnicheareas”.Sloveniashouldnolongeractasafollowerinprioritynicheareasbutasa“co-creatorofglobaltrends”,whichis,indeed,themissionofS4.ThekeyS4targetvariable is “raising the value added per employee”. The overall S4 implementation performance by2023 should result in increased share of high-tech intensive products in export, increased share ofexportofknowledge-intensiveservicesintotalexportandincreasedoverallentrepreneurialactivity.

S4isdesignedasanationwidedocumentanditaddresses“inacomprehensivemannerabroadrangeof development policies related to innovation, in particular the policy of promoting research andinnovation, industrial policy, entrepreneurship promotion as well as some parts of the educationsystem, rural development policy, international relations, improved regulatory environment(proceduresrelatedtotheissuingofpermits),etc.Financialsupporttotheidentifiedpriorityareaswillbeprovidedaswellasnon-financialsupportprovidingservicesimplementedinclosecooperationwithstrategicpartnerships”.

InidentifyingS4priorityareasofapplicationgreatemphasiswasgiventostrongempiricalbases.S4willaddressthefollowingpriorityareasandtheareasofapplication:1) Healthy working and living environment (smart cities and communities; smart buildings and

homes,includingwoodchain);2)Naturalandtraditionalresourcesforthefuture(networksforthetransitiontocirculareconomy;

sustainablefoodproduction;sustainabletourism);3)“(S)industry4.0”(factoriesofthefuture;health–medicine;mobility;developmentofmaterialsas

endproducts).

The second abovementioned priority area of S4 (Natural and traditional resources for the future)pertains to those areas of applicationwhich dependon the use of natural and traditional resources(e.g. cultural heritage, crafts, etc.) and which involve a number of stakeholders, usually without anobviousdominantactor.

Thefirstobjective inthispriorityarea is toconnectstakeholders–businessentities,educationalandresearch system, non-governmental organisations, the state and individuals – into value chainsaccordingtotheprinciple“economyofclosedmaterialcycles”todevelopnewbusinessmodelsforthetransition towards a circular economy. Slovenia has relatively well-preserved natural resources, butbetter and more efficient preservation and management of natural resources is needed.“Consequently, economic systems of linear economies have to transform to circular ones byeliminatingtheconceptofwaste,andthusprovideconditionsforlongcirculationperiodofproductsinuse,theircascadinguseandtheprovisionofcleanandunpollutedmaterialswhichcanbereused.Forestablishing such a system innovation at the level of business models and the establishment ofadequatesystemsoftheso-calledreverselogisticsareessential.”

Thefocuswillbeontechnologiesforsustainablebiomasstransformationandnewbio-basedmaterials;technologies for use of secondary and rawmaterials and reuse ofwaste; and production of energybasedonalternativeresources.Inthisregardthe2023objectivesareto(i)raisethematerialefficiencyindex(of1.07in2011to1.50in2020)andto(ii)establishfivenewvaluechainswithclosedmaterialcycles.

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“Slovenia will focus on those segments of themarket where companies are already represented inglobalmarketsorhavearealpotentialforabreakthroughintoglobalmarkets.Thefieldofsustainableenergy production demonstrates an already-established cooperation between companies as well asresearchinstitutions.Duringtheentrepreneurialdiscoveryprocess,30initiativespertainingtotheareaof ‘Networks for the transition to circular economy’ were prepared, with an estimated investmentvalue of over €950million. In the field of ‘technologies for the use of secondary rawmaterials andreuse’,greatpotential isdemonstratedinthebuildingsector,paperindustry,manufactureofrubber,agriculture,metallurgy and food industry.Using biomass does not only pertain to the productionofenergy;theinitiativesbuildontheuseofbiomassfornewbiologicalmaterialsandrelatedproductsinpapermakingandchemicalindustry”(S4).

Under the second priority field, “Natural and traditional resources for the future”, sustainable foodproduction and sustainable tourismwith IT-supportedmarketing and networking and investment inhigherqualityservices,arealsolisted.

S4 will serve as a basis to draw EU funds in the 2014-2020 budget period. The document plans€656millionindevelopmentinvestmentsannuallyinthe2016-2018periodthatwillbeearmarkedforresearch,developmentand innovation invaluechainsandnetworks, investment incentives, researchinfrastructure, researchers' research potential and international mobility; employees' expertise andskills, youth and creativity, and optimising conditions conducive to business.Non-financialmeasureswilltargetinnovativeandgreenpublicprocurement,taxbrakes,economicdiplomacyandpromotion,removalofregulatoryobstacles,andeffectivejudiciary(S4;TheSloveniaTimes,2016).

InDecember2015afirsttenderwaspresentedtotherepresentativesofmorethan500companiesandresearch institutions within the S4 framework (Government office for development and Europeancohesion policy, 2015). In January 2016, a special governmental working group was established toconnectrepresentativesfromdifferentministriesrelevantforcreatingsolutionsthatwouldstimulatethe transition towardsacirculareconomy. InFebruaryanabovementionedtender implementing theS4hasbeen launchedwith the aim to i) promote the implementationof researchanddevelopmentprograms (€55million in total) and ii) to give incentives to research and development projects(€12million in total value). Another separate tender on “strategic development innovationpartnerships”shouldfollowin2016andthenin2017asecondtendertoaddresstherestofthe2014-2020period(SVRK,2016).

Avaluabletoolfortheattainmentofcirculareconomyobjectivesshouldbethepolicyofgreenpublicprocurement, inparticularwhen it includes requirements that take intoaccount thekeyconceptsofcirculareconomy.Alreadyintheabove-mentionedResearchandInnovationStrategyofSlovenia2011-2020, green public procurement was expected to be one of the key elements stimulating eco-innovation. A decree on green public procurement was adopted already in 2011 and since thenamended several times, most recently in December 2014 (PISRS 2016; Official Gazette of RS, no.89/14). The Public Procurement Agency in Slovenia was established in 2010 and it should beresponsible for carrying out joint procurements for Slovenian public authorities for a number ofproductandservicegroups.In2012itwasevenrecognisedasoneofthegoodpracticeexamplesintheEU (EuropeanCommission, 2012), however, it never reached full operation and it ceased to exist inJune2012,asapartofmeasuresaimedatthereorganisationofthepublicsector.

In2012,theOECD(OECD,2012)estimatedthatanobstacletothemorerapidadoptionofgreenpublicprocurementhadbeenthe lackofexpertiseandskillsonthepartofpublicprocurements.Currently,green public procurement is obligatory for certain products in Slovenia and it aims to reduce thenegativeenvironmentalimpactofthepublicsector,andshapeitasarolemodelfortheprivatesectorandcitizens,inordertofacilitatethedevelopmentofenvironmentallymorefriendlyproducts,services

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and green technologies. Green public procurement as such is seen as an important opportunity forSMEs,whichprovetobeflexibleandabletoexploitgreenmarketniches.

The SlovenianGovernment has set as one of itsmost important priorities the preparation of a newSlovenian strategy of development. The document Slovenia’s Development Strategy for the period2006-2013hadexpired,butanewstrategy,alongwithotherrelevantdocuments(expectedin2013),has not been adopted. ‘Slovenia’s Vision 2050’ project has been started,whichwill be the first andcrucialsteptowardsthepreparationofthestrategicdocumentthatwilldefinekeydevelopmentgoalsby2030, followedbyamedium-termactionplan (Slovenija2050,2016a). InMarchandApril2016anumber of workshops already took place around Slovenia to address and co-create the Slovenia’sVision2050(Slovenija2050,2016b;CEP,2016).

Finally, certain developments that address the concept of the circular economy have taken place inSlovenia. InadditiontotheadoptionoftheS4andtheFrameworkprogrammeforthetransitiontoagreen economy, and the kick-off of the Slovenia’s 2050 Vision process, a working group has beencreated. The latter is led by the Ministry of Environment and Spatial Planning, which invited allinterestedstakeholders(localcommunities,publicsector,NGOsanduniversities)tojoininmonitoringandfacilitatingtheimplementationoftheFrameworkprogramme(MOP,2015).

EnergyefficiencyhasbeenrecognisedbytheSlovenianGovernmentasoneofthemostcost-effectivemeasures to achieve reductions in greenhouse gas emissions and increase the share of renewableenergy sources in gross final energy consumption. A project office for the energy renovation ofbuildingshasbeensetup inorder to facilitate theenergy renovationofpublicbuildings (MinistryofInfrastructure,2016).

TheSlovenianGovernmentalsocreatedaseparateworkareaforwoodandfurnitureindustryin2015that will try to revitalise the Slovenian wood industry. Slovenia is namely the third most forestedcountry inEuropebut, todate,hasbeenunable to takeadvantageof its enormousnaturalbiomasspotential (PrimeMinister of the RS, 2015). Biomass-based industries thus remain another promisingcircularandeco-innovationarea.

In2016Sloveniaalsostartedtheprocessto jointheEllenMacArthurCE100programmeandvariouseventsandworkshopswereorganisedfordifferentstakeholdersinordertopresenttheopportunitiesof thecirculareconomyandstimulate the transition to it.Despitea“lackof information,knowledgeandtargetedcommunication”(KoširGodina,2016)someSloveniancompaniesandlocalcommunitieshave been very active and have already initiated or proposed plans to cooperate or coordinatesustainablegoalsandprojects.ThecapitalLjubljanahasbecometheGreenCapitalofEurope2016(seegoodpracticeexamplebelow).

Finally, despite all the above-mentioned developments, a transition towards a circular economyremains a long-term process and only coherent policies with systemic and coherent measures andincentives will create a stable and predictable investment and development environment that willfacilitate and stimulate the continuation of the process that has been started. “A broader socialconsensusisneeded,aswellastheestablishmentofanappropriatesupportiveenvironment”,astheSlovenianPrimeMinisterCerarhasput it (LadejaKošir,2016).“ThebestguaranteeforthiswouldbefortheconceptofacirculareconomytobecomethefoundationofSlovenia’sLong-TermDevelopmentStrategy.”

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LJUBLJANA–EUROPEANGREENCAPITAL2016

Description:Ljubljanaissmallbysurfacearea,buthugeintermsofhospitalityandqualityoflife.Thecity has been following the idea of sustainable development since 2007 when a sustainabledevelopment vision up to 2025 and a list of related infrastructure projects important both for theenvironmentandthequalityoflifewereintroduced.Lessthanadecadeagothecitycentrewaschokedwithtraffic,itwashardtogetfromonesideoftherivertotheother,peoplespentalotoftimewaitingfor the bus and the riverbanks were a car park rather than a place of pleasant cafes. However,numerouschangeshavehappenedinashortperiod,whichisoneofthereasonsLjubljanahasbecomeEuropeanGreenCapital2016.

Mostimportantdrivingfactorsandimpactitgenerates:

-Transport:thecitycentre,whichwasoncethedomainofcarsandbuses,isnowmostlydedicatedtopedestriansandcyclists.Thecity'spublictransportisbecomingevermoreaccessibleanduser-friendlytopassengers.

-Air:74%ofhousinginLjubljanaisalreadyheatedbydistrictheatingandnaturalgasdistribution.

-Traffic:Publictransportisbecomingincreasinglyuser-friendlyandaccessible.

-Sustainabletourism:Ljubljanaishighonthelistoftheworld'smostsustainabletouristdestinations,asshownbywinningtheDestinationAwardinthe2015TourismforTomorrowAwards.

-Waste:LjubljanaistheEuropeanCapital,witha63%shareofseparatelycollectedwaste,thehighestinEuropein2014.

Keywords:Ljubljana,EuropeanGreenCapital2016

Internetlinks:

• EuropeanGreenCapital2016

• ThemediacentreoftheEuropeanGreenCapital2016

Contactsforfurtherinformation:

• green.capital@ljubljana.si

Source:EuropeanGreenCapital2016

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Projectofficefortheenergyrenovationofbuildings

Description:Energyefficiency isoneof themostcost-effectivemeasures toachievethereduction ingreenhouse gas emissions and increase the share of renewable energy sources in gross final energyconsumption.ThereforetheMinistryofInfrastructuresetupaprojectofficethataimstofacilitatetheenergy renovation of buildings, which will be implemented on the basis of an energy performancecontractingmodel. Such amodelwill allow the investment of the energy service company's privatefunds in the renovation. For the energy renovation of public buildings, €115million in grants and€50millioninrepayablecohesionfundswillbeprovidedintheperiod2016-2023.Thecohesionfundswill be combinedwith financial investments fromdedicated funds and programmes of internationalfinancial institutions in grants and repayable funds. On the basis of national as well as the EUlegislation, theSlovenianGovernmentadopted theLong-TermStrategy forMobilising Investments intheEnergyRenovationofBuildingsinOctober2015.

Most important driving factors and impact it generates: The expected result is the renovation of9.1millionm2 of floor area, which includes: 6millionm2 of floor area in residential buildings,1.8millionm2 of floor area in public buildings (including themandatory annual renovation of 3% ofpublic buildings owned by narrow sector), the renovation of 1.3millionm2 of floor area in publicbuildingsinthewiderpublicsectorintheperiod2014-2023.

Keywords:energyrenovationofbuildings,energyefficiency

Internetlinks:

• MinistryofInfrastructure

• BuildingEnergyRenovation

• ProjectOfficefortheEnergyRenovationofBuildings(slov.Pojektnapisarnazaenergetskoprenovostavb)

Contactsforfurtherinformation:

Projectofficefortheenergyrenovationofbuildings:

• Branka Bugarin, Phone: +386 1 478 8267; Martina Gračner, Phone: +386 1 478 8991; ZdenkaŠibelja,Phone:+38614788996Fax:+38614788139

• E-mail:mzi.pp-eps(at)gov.si

Source:MinistryofInfrastructure2016

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LOCALREUSECENTERS

Description: Local reuse centres were conceived as social enterprises (business) that aim to solveenvironmental problems in an entrepreneurial way. They enable people to submit various productsthat could be reused with the help of minor repairs, improvements and/or innovative renovation.These products are then sold for symbolic prices. Local reuse centres organise presentations andworkshops on the renovation of used products. They also promote craft professions and socialresponsibility and enable local residents to participate in their activities. To date, nine local reusecentres have been conceived (Ljubljana, Rogaška Slatina, Vojnik, Tepanje, Slovenske Konjice,Ormož,Trebnje, Kočevje, Miklavž na Dravkem polju). The Slovenian network of reuse centres is also a fullmemberoftheEuropeanRReusenetwork.

Most important driving factors and impact it generates: Local reuse centres not only decrease theamount of waste, but they also create new jobs and enable and increase the protection of naturalresources,rawmaterialsandwater.

Keywords:reusecentre,socialresponsibility

Internetlinks:

• SloveniannetworkofReusecentres

Contactsforfurtherinformation:

• Centerponovneuporabed.o.o., SO.P.,Vrazova9, 2270Ormož, T: 082056156, E:ormoz@cpu-reuse.com

Source:SloveniannetworkofReusecentres

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ReferencesCEP, 2016, Slovenia’s Vision 2050. Available at: http://www.cep.si/news-and-press-/press-releases/447-slovenia-s-vision-2050

EuropeanCommission,2012,GreenPublicProcurement–Acollectionofgoodpractices.Availableat:http://ec.europa.eu/environment/gpp/pdf/GPP_Good_Practices_Brochure.pdf

Eurostat, 2016, Gross domestic expenditure on R&D (GERD) by source of funds. Available at:http://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=tsc00031&language=en

Eurostat, 2016b, Research and development personnel. Available at:http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tsc00002&plugin=0

Eurostat, 2016c, Energy intensity of the economy. Available at:http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tsdec360&plugin=1

Eurostat, 2016d, Energy dependence. Available at:http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tsdcc310&plugin=1

Framework Programme for The Transition to aGreen Economy (Okvirni program za prehod v zeleno

gospodarstvo), 2015. Available at:http://www.mop.gov.si/fileadmin/mop.gov.si/pageuploads/pomembni_dokumenti/opzg_akcijski_nacrt_in_nacrt_aktivnosti.pdf

Glasenčnik E., Dermelj M., Medica N., Pirih T. Flak M., 2014, Eco-innovations and Eco-design in

companies in Slovenia (Okolju prijazne inopvacije in okolju prijazno oblikovanje (Eko inovacije in Eko

dizajn) v podjetjih v Sloveniji). Available at:http://www.mgrt.gov.si/fileadmin/mgrt.gov.si/pageuploads/DPK/eko_inovacije/Okolju_prijazne_inova

cije_in_okolju_prijazno_oblikovanje__eko_inovacije_in_eko_dizajn__v_podjetjih_v_Sloveniji.pdf

Governmentof theRepublic of Slovenia, 2015, Transition toa circular economy requires cooperation

and integration. Available at:http://www.vlada.si/en/media_room/newsletter/slovenia_weekly/news/article/transition_to_a_circular_economy_requires_cooperation_and_integration_56868/

Governmentof theRepublicofSlovenia,2016,Greenas theSloveniandevelopmentpotential (Zeleno

kot razvojni potencial Slovenije). Available at:http://www.vlada.si/teme_in_projekti/prehod_v_zeleno_gospodarstvo/

GovernmentofficefordevelopmentandEuropeancohesionpolicy,2015,Predstavitevprvegarazpisav

okviru Strategije pametne specializacije. Available at:http://www.svrk.gov.si/si/medijsko_sredisce/novica/article/1328/6205/27ae741ab8d2a7c398ed076f2f32d493/

Hidria, 2015, HIDRIA AET »Environmentally Friendly Company«. Available at:http://www.hidria.com/en/about-us/news-events/9689/detail.html

24

Hidria, 2016, Hidriawon CLEPA First Award for Best Innovation in Green Technologies.Available at:http://www.hidria.com/en/about-us/news-events/9987/detail.html

Košir Godina, L., 2016, From Circular: Slovenia isMoving Towards a Circular Economy.Available at:http://www.sloveniatimes.com/slovenia-is-moving-towards-a-circular-economy

Ministry of economic development and technology, 2015, Slovenia’s Smart Specialisation Strategy.

Availableat:http://www.mgrt.gov.si/nc/en/media_room/news/article//10501/

Ministry of Education, Science and Sport, 2016, Digitalna Slovenija. Available at:http://www.mizs.gov.si/si/delovna_podrocja/direktorat_za_informacijsko_druzbo/digitalna_slovenija_2020/

Ministry of Infrastructure, 2016, Energy Renovation of Buildings. Available at:http://www.mzi.gov.si/en/areas_of_work/energy/energy_renovation_of_buildings/

Ministryoftheenvironmentandspatialplanning,2016,MinisterIrenaMajcenatthesessionoftheEU

environment council. Available at:http://www.mop.gov.si/nc/en/media_room/news/article/1328/6719/

Ministrstvo za okolje, 2015. Sprejet Okvirni program za prehod v zeleno gospodarstvo z akcijskim

načrtom izvajanja in aktivnostmi resorjev. Available at:http://www.mop.gov.si/nc/si/medijsko_sredisce/novica/article/12029/6423/

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PrimeMinisteroftheRS,2015,PrimeMinisterdr.Cerarattheexposition“theMagicofWood”andon

thegreatnaturalpotential for thedevelopmentof theSlovenianwood industry (Premierdr.Cerarna

odprtju razstave Čar lesa 2015 o velikem naravnem potencialu za razvoj slovenske lesne industrije).Available at:http://www.kpv.gov.si/nc/si/medijsko_sredisce/novica/article/225/7730/0acb19e04bd1ef063dbbd890d58c1774/

Research and Innovation Strategy of Slovenia 2011-2020, 2011. Available at:http://www.arhiv.mvzt.gov.si/fileadmin/mvzt.gov.si/pageuploads/pdf/odnosi_z_javnostmi/12.4.11_RISS_ANG_nova_verzija.pdf

Slovenia2050,2016a,VizijaSlovenije2050.Availableat:http://slovenija2050.si/vizija-2050/

Slovenia 2050, 2016b, V ponedeljek se pričenja turneja dogodkov po Sloveniji. Available at:http://slovenija2050.si/v-ponedeljek-se-pricenja-turneja-dogodkov-po-sloveniji/

Slovenian Industry Policy, 2013. Available at:http://www.mgrt.gov.si/fileadmin/mgrt.gov.si/pageuploads/DPK/SIP/SIP_-_vladni_dokument_EN.doc

Slovenia’s Development Strategy, 2005. Available at:http://www.umar.gov.si/fileadmin/user_upload/publikacije/pr/2011/a_SRS/Asrs.pdf

25

Slovenia’s Smart Specialisation Strategy, 2015. Available at:http://www.svrk.gov.si/fileadmin/svrk.gov.si/pageuploads/SPS_predstavitve/S4_dokument_2015_october_eng_clean_lekt.pdf

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Slovenia.

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inSlovenia.

26

ANNEX:Policymeasuresaddressingcirculareconomyandeco-innovationsinSlovenia

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

addcellsifnecessary

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimproveme

nt

Energyefficiencyimprovement

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

SUPP

LYSIDEFO

CUS

Equity/businesssupport

Publiclyco-fundedventurecapitafunds

Slovene Enterprise Fund (SEF) is a national financial institution and thestimulator of the development of micro-, small and medium-sizedenterprises (SMEs). It supports young enterprises, which due to thespecifics of the development and no track record, have difficulties inobtaining the necessary financial resources on themarket. However, nospecialfocusisgiventocirculareconomyand/oreco-innovations.

So-called“Seedcapital”isintendedforyoungenterprises(youngerthan5years) in the second development phase to enable their entry into themarket.SEFaloneand/ortogetherwithprivateinvestorsdirectlyinvestsintheformofaconvertibleloanorintheformofdirectcapitalinvestmentinyounghigh-techcompany:

-Convertibleloanforstartupofinnovativeenterprises

-Directcapitalforgrowthofinnovativeenterprises

SEF offers support in the form of venture capital for a rapid growth ofyoungenterprisesthatincludestheentryintotheownershipstructureandmanagement of the enterprise in cooperation with capital investmentsfromprivateinvestors(venturecapitalandmezzaninecapital).

SEFoffersdirectloanstomicro-andsmallenterprisesthatrepresentdirectcreditsoftheFundatanaffordablecontractualinterestrateintendedforyoungenterprisesorspecifictargetgroupsofenterprisesthatrepresentaspecificmarketgapinSlovenia.

Publicguaranteefunds

SEFoffersGuaranteesforbankloanswithinterestratesubsidythatallowyoungenterprises(youngerthan5years)toobtainbankloans.Itspurposeistoenableyoungenterprisesfasterobtainingofbankloanstoimplementprojects that facilitate a competitive market penetration, an improvedmarket position and expansion of business and improve the financing ofworking capital. However, no special focus is given to circular economy

27

and/oreco-innovations.

SupportforR&Dinpublicsectorandindustry

R&Dfunding

The Slovenian Research Agency (SRA) performs tasks relating to theNationalResearchandDevelopmentProgrammeandcreationofEuropeanResearch Area. It supports R&D in the public sector through manifoldresearchprogrammescarriedoutbyprogrammegroupsinpublicresearchinstitutions,universities,etc.

x x x x x x

Collaborativegrants

SloveneEnterpriseFund(SEF)aimstoprovidetheinitialfinancialsupportand especially target enterprises with high share of own knowledge,innovationandpotentialof creatingproductsor serviceswithhighvalueadded.However,nospecialfocusisgiventocirculareconomyand/oreco-innovations.

“Start-up incentives” for special target groups are intended mainly fornewlyestablishedenterprisesthathavepotentialforrapidgrowthandareatthemostsensitivestageoftheirdevelopment:

-Incentivesforinnovativestart-ups

-Incentivesforbusinessstart-upsintheproblemregions

R&Dinfrastructure

Research Infrastructures Roadmap 2011-2020 prepared by the (former)Ministryofhighereducation,scienceandtechnologysetsupandpresentsSlovenianprioritiesintheareaofresearchinfrastructure.ItcomplementstheResearchandInnovationStrategyofSlovenia2011-2020.

x x x x x

Fiscalmeasures

TaxincentivesforR&Dandstart-ups

Companies enjoy tax relief for their investments for R&D and theCorporate Income Tax Act also introduced tax relief for investments inresearchanddevelopment(Article55).

TaxincentivesforR&Dpersonnel

28

Education,trainingandmobility

Tailoredtrainingcoursesforcompanies,entrepreneurs

Podjetniškiportal (theEntrepreneur’sPage) runbySPIRIT (PublicAgencyfor Entrepreneurship, Internationalisation, Foreign Investments andTechnology) offers information and advice, how to start and develop acompanyandmarketproductsandservices,interalia:

-Mladi:adviceandworkshopsforyoungpeopleandentrepreneurs.

However, no special focus is given to circular economy and/or eco-innovations.

Advice/consultingforstartups,companies,entrepreneurs

Podjetniškiportal (theEntrepreneur’sPage) runbySPIRIT (PublicAgencyfor Entrepreneurship, Internationalisation, Foreign Investments andTechnology) offers information and advice, how to start and develop acompanyandmarketproductsandservices,interalia:

-Mladi:adviceandworkshopsforyoungpeopleandentrepreneurs;

-Zagon(Start-up):freeinformationonhowtostartacompany;

- National innovation system: free support activities to encourage andfacilitateinnovations,marketentranceandtheprotectionofpropertyandintellectualrights

- Thewebsite Imam idejo! (I have an idea!), a website of the SlovenianCentre for Competitiveness and Innovation (SCCI) (run by SPIRIT), is aninteractivetoolforinnovativeusers,seekingfinancial,technical,legalandothersupportrelatingtotheirsophisticated inventionoroutlinescheme.Thewebsite is designed for users, taking into account the problem theyfacewithin the innovationprocess. Thewebsite is a "one-stop shop" forinventorsandatailor-madeproblem-solverwithasubstantialeducationalcomponent

-OneStopBusinessPoints(VEMande-VEM)runbySPIRIT)forcompaniesandentrepreneursenablefreeregistrationofacompanyorentrepreneurandfreeofchargesimplelegalchangesonprivatelimitedcompanies

- Razvoj: information on development of the company, products andservices;

-Rast:informationongrowth,marketingandinternationalisation;

However, no special focus is given to circular economy and/or eco-innovations.

Placementschemesforstudents

Slovene Human Resources Development and Scholarship Fund as thecentralnationalmanagementinstitutionforscholarshipsanddevelopment

29

ofhumanresources,offersscholarshipsforstudyandresearch, increasesinternational mobility of students and researchers, provides financialincentives to employers for development of human resources, awardsexcellence,providesup-to-dateinformationandhelpsbuildanetworkforminimisingobstacles tomobilityofstudents, researchersandemployees.However, no special focus is given to circular economy and/or eco-innovations.

SupportforR&Dworkersrecruitments

TheSlovenianResearchAgencyfinancespostgraduatestudyandresearchtrainingforyoungresearchers.Theprogrammehasbeengoingsince1985.Currently,researchprogrammeschoseacandidateaccordingtotheiraimsandpreferences. In theagencypolicynospecial focus isgiventocirculareconomyand/oreco-innovation.

Networksandpartnerships

Competencecentres,clusters,science-technology

parks

S4 Public tender: Promotion of research and development programsimplementation

First S4 tender – Section 1 (€55m) aims to facilitate and encourage thecreationandimplementationofjointconsortiaresearchanddevelopmentprogramsbetweenknowledge institutionsandprivatebusinesses.S4hasidentified priority areas, where Slovenia has the long-term potential toenter globalmarkets: smart cities and communities; smart buildings andwooden houses; networks for the transition to circular economy;sustainable food production; factories of the future; health-medicine;mobility;developmentofmaterialsasendproducts.

x x x x x x

S4Publictender:Promotionofresearchdevelopmentprograms

FirstS4tender–Section2(€12m)aimstofacilitateresearchdevelopmentand innovationactivities incompaniesandconsortiaofcompaniesbyco-financing at least 24 research development projects (RDPs) that addressnew or enhanced products, processes or serviceswith high value addedandmarketpotential.

x x x x x x

S4tenderonStrategicdevelopmentinnovationpartnerships(tofollowin2016) and the Second S4 tender thatwill address the rest of the 2014-2020period(tofollowinthebeginningof2017)(SVRK,2016).

Podjetniški portal (the Entrepreneur’s Page) run by SPIRIT supportsTechnology parks and incubators (university incubators, entrepreneurialincubators) to encourage the development of start-ups and theircompetitivenessandvalueaddedingeneral.However,nospecialfocusis

x x x x x x

30

giventocirculareconomyand/oreco-innovations.

EightcentresofexcellenceandsevencompetencecentreswereselectedbytheMinistryofHigherEducation,ScienceandTechnologyforsupportin2009–2013.However,since2013nofurthersupporthasbeenprovided.

Six clusters exist in Slovenia, all privately funded and key innovative andcirculareconomypromoters inSlovenia, interalia:Automotive clusterofSlovenia,WoodIndustryCluster,TechnologicalcentreTECES,etc.

Technologyplatformsandinnovationnetworks

Podjetniški portal (the Entrepreneur’s Page) run by SPIRIT supportstechnology transfer and innovation of public research organisations toenabletransferofknowledgeandtechnologiestoprivatesector.So-calledTechnology transfer offices represent Universities in Ljubljana, MariborandPrimorska,andNationalInstituteofChemistry,Institut“JožefStefan”and National Institute of Biology. However, no special focus is given tocirculareconomyand/oreco-innovations.

Foresightandcommonvisionbuilding

Marketintelligenceandotherformsofinformation

sharing

Chamber of Commerce and Industry of Slovenia provides marketintelligence to companies and organises manifold seminars, workshopsandconferences.

x x x x x x

DEMAN

DSIDE

FOCU

S

Regulationsandstandards

Regulations,targets,cap&tradeschemes

ImplementationoftheEUlegislation. x x x x

Performancestandards,labelling,certification

Implementationof theEU legislationonEco-designandEnergyLabelling,Energy Performance of Buildings (Energy Performance Certificates (EPC))andEnergyEfficiency.

x x x

Publicprocurement

“Green“publicprocurementofgoodsandservices

Environmental and sustainability requirements are being introduced inpublicprocurementprocedures (Greenpublicprocurementof goodsand

x x x x

31

services).

R&Dprocurement

Pre-commercialprocurement

TechnologyTransfer

Advisorysupportfortechnologyadopters

ENSVETrepresentsaprogramoffreeenergyconsultationforcitizens.Eco-fund(inlinewiththeEnergyLaw,EZ-1,Article352)hassetuptheNetworkofENSVETofficesacrossSlovenia thatofferenergy consultation focusingonenergyefficiencyanduseofrenewableenergysources.

x x x

Financialorfiscalsupportfortechnologyadopters

(e.g.grantsforpurchasingnewtechnology)

SlovenianEnvironmentalPublicFund(EcoFund)promotesdevelopmentinthefieldofenvironmentalprotection. It is theonlyspecialised institutionin Slovenia that provides financial supports for environmental projects.Thefinancialassistanceisofferedmainlythroughsoftloansfromrevolvingfundsandsincetheyear2008throughgrants.EcoFundoffers:

Loans to legal entities (municipalities and/or providers of public utilityservices, enterprises and other legal entities) and sole traders forinvestments in environmental infrastructure, environmentally soundtechnologies and products, energy efficiency, energy saving investments,anduseofrenewableenergysources

x x x x

Loans to individuals (households) for conversion from fossil fuels torenewable energy sources, energy saving investments, investments inwaterconsumptionreduction,connectionstosewagesystem,smallwastewatertreatmentplants,replacementofasbestosroofs

x x x x

Supportofprivatedemand

Taxincentivesforconsumers(e.g.forpurchasing

environmentallyefficientproducts)

Taxreductionsforproductsandservices(e.g.VAT

32

reductions)

Demandsubsidies(e.g.eco-vouchers,consumer

subsidies)

SlovenianEnvironmentalPublicFund(EcoFund)promotesdevelopmentinthefieldofenvironmentalprotection. It is theonlyspecialised institutionin Slovenia that provides financial supports for environmental projects.Thefinancialassistanceisofferedmainlythroughsoftloansfromrevolvingfundsandsincetheyear2008throughgrants.TheEcoFundoffers:

Grantstoindividuals(households)forinvestmentsinelectriccarsandforinvestments in residential buildings (energy efficiency and use ofrenewableenergysources);

x

x

x

Grants to legal entities (municipalities and/or providers of public utilityservices, enterprises and other legal entities) for investments in electriccarsandbusesforpublictransportoncompressednaturalgasorbiogas;

x x x x

Grants to municipalities for investments in buildings where publiceducation takes place (schools, kindergartens, libraries etc.), newlyconstructed as low energy and passive buildings or renovated in passivestandard.

x x x x

Awarenessraisingandinformationprovision

Ministry of the Environment and Spatial Planning promotes awarenessraising, and provides information on circular economy and variousenvironmentalandsustainableissues.

x x x x x x

Slovenian Environment Agency provides information on air, water,environmentalprotection,nature,andclimatechange.

x x x x

Sustainable Energy Portal has been set up in line with the Energy Law(Article351)togatherandprovideinformationinregardtoefficientuseofenergyandrenewableenergysourcesinSlovenia.

ENSVETrepresentsaprogramoffreeenergyconsultationforcitizens.Eco-fund(inlinewiththeEnergyLaw,EZ-1,Article352)hassetuptheNetworkofENSVETofficesacrossSlovenia thatofferenergy consultation focusingonenergyefficiencyanduseofrenewableenergysources.

x

x

x

x

x

x

AbouttheEco-InnovationObservatory(EIO)

The Eco-Innovation Observatory (EIO) is the initiative financed by the European Commission’sDirectorate-General for the Environment. The Observatory is developing an integrated informationsource and a series of analyses on eco-innovation trends andmarkets, targeting business, innovationserviceproviders,policymakersaswellasresearchersandanalysts.

VisitEIOandDGENVEco-innovationActionPlan(EcoAP)websiteandregistertogetaccesstomoreinformationandtoaccessallEIOreports,briefsanddatabases.

www.eco-innovation.euec.europa.eu/environment/ecoap