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European Sector Profiling Clean Tech June 2020 CHALLENGE. CREATE. COLLABORATE.

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Page 1: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

European Sector

Profiling

Clean Tech

June 2020

CHALLENGE.CREATE.COLLABORATE.

Page 2: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

Contents

European Clean

Tech Market

Overview

01

Exploring market size, opportunity, import trends and Canada’s position within Europe. Understanding the landscape and consumer preferences.

02 03 04Assessing the Impact

of COVID-19

Clean Tech: Sub-

Sector Deep Dives

Accessing The

European Market

Understanding the current state of play, opportunities created, trends and major changes to consumers and the market.

Exploring the detail of specific sub-sectors in Europe; their growth, key statistics and current trends.

Evaluating logistics and regulations of the European

market. Developing a market entry strategy to be successful.

Page 3: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

Contents

European Clean

Tech Market

Overview

01

Exploring market size, opportunity, import trends and Canada’s position within Europe. Understanding the landscape and consumer preferences.

02 03 04Assessing the Impact

of COVID-19

Clean Tech: Sub-

Sector Deep Dives

Accessing The

European Market

Understanding the current state of play, opportunities created, trends and major changes to consumers and the market.

Exploring the detail of specific sub-sectors in Europe; their growth, key statistics and current trends.

Evaluating logistics and regulations of the European

market. Developing a market entry strategy to be successful.

Page 4: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

`

14.6% Growth USD$206.6 billion

Source: Statistics Canada, Government of Canada

0% Tax

the U.S and the world’s third-largest importer of clean technology products

The EU is Canada’s second-largest Clean Tech export market after

In European Clean Tech sector European Clean Tech sector revenue 2019 On Canadian exports to EU

4

Page 5: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

Spain: • Smart grids & cities

• Fresh and waste

water treatment and

management

• Pollution control

• Remediation

technologies.

Germany:

• Water and

wastewater

management

• Air pollution control,

• Advanced

recycling

• Soil remediation.

Netherlands:

• Solar Energy

• Onshore wind

• Biomass

• Geothermal

resources.

UK:

• Renewable energy

• Energy efficiency

• Green technologies

• Smart grid

technologies

• Electric vehicles.

Source: EDC

5

region are focusing on a broad range of cleaner areas

Clean Tech is thriving in Europe and key markets across the

Page 6: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

Germany has set a target of

generating 65% of its power from

renewable sources by 2030,

requiring an increase in wind and

solar generation capacity to

between 215 and 237 gigawatts

(GW) from 120 GW. Renewables

currently sit at 40%.

renewable energy targets with Germany leading the way

Key markets in Europe are setting ambitious and important

The Netherlands supports the

increase of the European 2030

renewable energy target to 32%.

The targets defined are 14% by

2020 and 16% by 2023.

Belgium promises a 2030

total renewables target of

18.3%. With electricity the

key target of 40% renewable

by 2030.

6

Page 7: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.comSource: Statistics Canada

Atlantic Canada Key European Market Energy Exports Jan ‘16 – Dec ’20 (in Million C$ )

the Netherlands has been the key growth market over the past 4 years

Energy exports from the Atlantic Canada have fluctuated with

7

Page 8: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

Source: PV Europe, BEUC

Decarbonization Decentralization Digitalization

clean alternative energy and social pressure on governments to transition

The past few years has seen an increase in public awareness in

EU government schemes and consumer demand are

pushing the decarbonization of energy, accelerated by increased focus on sustainability as a

result of COVID-19.

Across Europe there has been a trend towards decentralization in

the energy sector. Consumers have begun to generate their own

energy through solar panels or energy storage solutions. Likewise,

companies in the agriculture industry are increasingly converting

biomass to energy.

The digitalisation of the energy system follows the wider trend

of digitalisation and big data in all sectors. This has been possible because of the

deployment of smart meters, the Internet of Things and

smart appliances.

8

Page 9: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

More households generate electricity on their

rooftops than ever before, this has been partly

driven by the lower costs of technologies and

energy storage becoming more affordable

Moreover, the EU itself has a strong

commitment to the Paris Agreement, which

aims to limit the increase in global average

temperatures to 2°C and pursue efforts to

keep it to 1.5°C.

This top level commitment is a key driving

factor that is shifting the focus towards Clean

Tech.

Source: PV Europe, BEUC

more popular as the costs of installation declines

Renewable energy sources are becoming

9

Page 10: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

Algorithms, machine learning and AI will

revolutionize the way we consume energy and

the way the electricity system functions.

Artificial intelligence helps energy providers

and consumers regulate and reduce waste by

collecting data and optimizing energy

efficiency.

Despite consumption management, AI can

also prevent emergencies and provide

disaster management. Advanced devices like

smart meters and energy collectors are built in

a way to record changes in meteorological

conditions and temperature, anticipating

emergencies and can automatically adjust its

settings.

Source: PV Europe, BEUC

many new ways for the consumer to interact with the system

Digitalisation and automation open the door to

10

Page 11: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

The number of connected devices is skyrocketing

with 31 billion predicted to be used in 2020 and 75

billion by 2025.

Solar energy accessibility increases grid parity

because as the more private households can install

private energy generators, it becomes cheaper. In

2020, the market is going to see changes in prices,

which means that solar and other renewable energy

will become more affordable than traditional energy

sources, such as coal or gas.

New tech available in Europe does not only make

renewable energy cheaper and more

accessible but can also allow individual

households to control their energy consumption without overpaying for public services.

Source: PV Europe, BEUC

to the internet allowing for automation and remote control

Internet of Things connects household appliances directly

11

Page 12: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

40%of RE100 companies are in Europe

Source: RE100

to 100% renewable power as part of the RE 100 initiative

The world's most influential companies committed

12

Page 13: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

Source: Northland Power

Gemini (Offshore wind)

Canadian power company Northland is 60%

owner of the 600 MW Gemini offshore wind

project. Located 85 km off the Netherlands

coast, Gemini generates 600 MW, meeting

the annual energy needs of one and a half

million people and reducing the annual

CO2 emissions of the Netherlands by 1.25

million tons. Gemini is one of the largest

offshore wind farms in the North Sea, and

one of the largest in the world. Northland's

project team reached financial close for

Gemini in May 2014 and the project was

completed in April 2017, ahead of schedule

and under budget.

beyond their borders, and a big focus seems to be in Europe

Canadian renewables players are making strides

13

Page 14: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

`

Canadian Solar

Canadian Solar will fund the construction of

a 151MWp portfolio of Italian solar projects

with a €55 million bilateral revolving credit

facility from Italian bank Intesa Sanpaolo.

The projects will be equipped with

Canadian Solar HiKu CS3W-425 modules

and be capable of producing

approximately 287GWh of solar power per

year. The bilateral revolving credit facility will

fund 12 projects in Sicily, Apulia and Lazio.

Source: Canadian Solar

14

beyond their borders, and a big focus seems to be in Europe

Canadian renewables players are making strides

Page 15: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

`

Enbridge - Rampion project

Late last year, Enbridge bought a quarter-

stake in the Rampion project off the UK

coast, and then followed this year by

investing C$282m in a French offshore wind

project company owned by EDF Energies

Nouvelles.

Source: Enbridge

beyond their borders, and a big focus seems to be in Europe

Canadian renewables players are making strides

15

Page 16: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

Contents

European Clean

Tech Market

Overview

01

Exploring market size, opportunity, import trends and Canada’s position within Europe. Understanding the landscape and consumer preferences.

02 03 04Assessing the Impact

of COVID-19

Clean Tech: Sub-

Sector Deep Dives

Accessing The

European Market

Understanding the current state of play, opportunities created, trends and major changes to consumers and the market.

Exploring the detail of specific sub-sectors in Europe; their growth, key statistics and current trends.

Evaluating logistics and regulations of the European

market. Developing a market entry strategy to be successful.

Page 17: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

17

`

on Clean Tech whilst also presenting some interesting opportunities

As with many sectors, COVID-19 has had an impact on

Source: FAO

Supply

Chain Disruptions

Wholesale Market

Volatility

Governmental

Incentives

Schemes

Engine and blade manufacturers are facing increased costs and

longer lead times, as international supply chains are

disrupted. This is having a knock on effect, delaying projects

across the region.

Fluctuations in energy demand and supply, as well as falling oil

prices, have driven down energy prices in Europe with wholesale

prices falling by as much as 50% in 2020.

Project delays mean that companies in Europe run the risk

of missing deadlines for government incentives and

financial support.

Page 18: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

`

Country Policy change Impact year

Austria Extension of the construction period for wind farms by 6 months 2020-2021

Denmark

3-5-month extension of commissioning deadlines for household

wind turbines; 2-month extension for subsidy applications for biogas

projects

2020

France Extension of commissioning deadlines by 2-6 months 2020-2021

GermanyFederal network agency announced flexibility in project

commissioning for previously auctioned projects2020-2021

United Kingdom6-month extension of the FIT completion deadline for community

solar projects2020

Source: - IEA

policy changes to counteract these challenges

A number of European countries have introduced

18

Page 19: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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Germany has seen the share

of renewables reach 60%

(up 12%) and coal

generation fall 44%, resulting

in a fall in the carbon

intensity of its electricity of

over 30%.

& Renewable Energy sector that came from the lockdown measures

There have been a lot of positive outcomes for the Clean Tech

In the UK, renewables now

have a 43% share of

generation (up 10% on the

same March 10-April 10

period in 2019) with coal

power down 35% and gas

down 24%.

Spain currently has a 49%

renewables generation

share, with coal power

down by 41%.

19

Page 20: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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with governments across Europe assessing Green Stimulus Packages

Clean growth is seen as a way to stimulate economic recovery

The aim is to ensure that clean growth

ambitions not only survive the economic

downturn but come out the other side

stronger.

From increased energy efficiency, more cycle

lanes and planting trees, green stimulus

packages will encourage a range of clean

policies.

World Bank suggests incentive policies in line

with Paris Agreement and cop26.

20

Page 21: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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packages with a focus on clean growth and sustainability

Some government bodies are already implementing recovery

EU’s recovery strategy focuses

on The European Green Deal

with increased emphasis on

renewables and circular

economy.

Resisting calls from powerful

automotive industry, Germany

has unveiled plans for €40

billion climate-related spending

package.

21

Page 22: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

Contents

European Clean

Tech Market

Overview

01

Exploring market size, opportunity, import trends and Canada’s position within Europe. Understanding the landscape and consumer preferences.

02 03 04Assessing the Impact

of COVID-19

Clean Tech: Sub-

Sector Deep Dives

Accessing The

European Market

Understanding the current state of play, opportunities created, trends and major changes to consumers and the market.

Exploring the detail of specific sub-sectors in Europe; their growth, key statistics and current trends.

Evaluating logistics and regulations of the European

market. Developing a market entry strategy to be successful.

Page 23: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.comwww.ocoglobal.com

Renewable

Energy

Renewable energy defined as

the energy from a source that is

not depleted when used.

Below is a list of topics covered within this section:

01Solar

Energy

02Onshore

Wind

Energy

03Offshore

Wind Energy

23

Page 24: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

14.2

15

16.1

16.7

17

17.5

18

13.5

14.0

14.5

15.0

15.5

16.0

16.5

17.0

17.5

18.0

18.5

2012 2013 2014 2015 2016 2017 2018

Sh

are

of

ren

ew

ab

le e

ne

rgy in

pe

rce

nta

ge

Renewable energy shares in electricity consumption in the European Union 2012-2018

Germany showed 25% increase in

RE consumption

United Kingdom showed 37%increase in RE consumption

France showed 34% increase in RE

consumption

Netherlands showed 35% increase

in RE consumption

Belgium showed 18% increase in

RE consumption

Be

twe

en

20

15 a

nd

20

18

Source: - SolarPower Europe, Statista, 24

with across Europe with more than 26% increase between 2012 and 2018

The EU has shown consistent increase in the generation of Renewable Energy

Page 25: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

with 7 main subsectors, and wind, solar and biomass leading the way

Europe posses a wealth of opportunity in renewable energy investments

25

24.1

19.2

12.6

3.2

0.60.10.10

5

10

15

20

25

30

Renewable Energy Capacity Investments in 2018

(by subsector in € billions)

Source: - SolarPower Europe, Statista,

€b

illio

ns

Page 26: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

www.ocoglobal.com

`

with 7 main subsectors, and wind, solar and biomass leading the way

Europe posses a wealth of opportunity in renewable energy investments

26

Renewable Energy

Capacity Investment (in 2018, by country)

$8.8 billion

$7.5 billion

$4.1 billion

$4.9 billion

Source: - SolarPower Europe, Statista,

Page 27: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

when looking at solar projects

There are two key export opportunities

27Source: - REA, IRENA

PV modulesWith the abolition of the import duties on the modules,

China is the biggest source of modules due to its cost.

With companies like Canadian Solar, Panasonic and Sun

Power Corporation that produce solar panels of efficiency

between 18 – 22%, it makes the Northern American market

a strong competitor.

BatteriesIn various EU countries, the price of energy storage has

fallen 60% since 2014 with an expected fall of another 50%

by the end of 2030. Germany is one of the key players in

energy storage utilization. It has over 100,000 solar storage

systems installed all over the country.

Page 28: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

European Solar Energy market and shows the constant consistent growth

The statistics and movement all across Europe highlights the healthy

28

Of new installed

wind projects in

Europe in 2019

Increase compared

to 2018

Source: Solar Power Europe, 2019

Page 29: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

Due to a solid industrial

foundation, solar power

has fast become one of

the cheapest technologies

for electricity generation

worldwide, and has

Decreased in price

between 2008 and 2019

75%Decrease

in Price

Trends show that Solar is

the worlds fastest growing

power generation source

and it aims to generate

20% of its electricity from

solar energy and create

500K jobs.

20%Of the Worlds

Energy Supply

15-17GW is the Energy

generation growth in 2019

alone. The solar market is

expected to continue to

grow from 2020 onwards,

making solar capacity a

cornerstone of the clean

energy transition.

15-17GWEnergy generation

Growth

From Photovoltaic solar

panels for electricity

generation to

Concentrated Solar

Power stations to

generate steam; creating

a large market operating

in Europe.

EU Tech HubOperate in

Europe

Source: - Statista

29

Energy is both affordable and accessible for consumers

The EU have taken significant measures to ensure that the solar

Page 30: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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55% of installed Wind Energy projects in 2019 were spread between four countries only, with Wind Energy

supplying over 15% of EU energy demand, it has become an essential part of the EU’s green plan.

Germany is at the forefront of utilization of wind energy with the highest capacity of wind turbines

installed making it an essential market, meanwhile, in 2019, Spain was the biggest investor in Wind Energy

projects, overtaking Germany. Repowering of old projects is also a key factor in the sustaining of high energy projects with the use of higher capacity and rating new technology.

looking at Wind Energy across Europe

There are four main key markets when

30

Source: - Wind Europe

Page 31: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

Source: Wind Europe, 2020 –

Of new installed

wind projects in

Europe in 2019

15.4 GWIncrease

compared to

2018

27%

Savings a year in

fuel costs

€28 billion

Projected Annual Growth Rate

18.2%

R&D EU

Budget

€ 27mn

`

31

with consistent increases in value and volume

The European wind energy market is both healthy and growing

Page 32: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

Source: Wind Europe, 2020 –

`

Spain financed the most wind energy in 2019, both in terms of capacity financed and amount invested. 28

onshore projects reached final investment decision(FID) with an average investment of €1m per MW.

€52bn

Has been invested

in Europe in Wind

energy alone.

€13.1bnTotal investments in onshore wind power in

Europe were sold with €13.1bn and the second highest capacity financed in a year

with 10.3 GW.

Five

Of the worlds ten

largest manufacturers

of Wind Turbines are EU

based

5%+ GDP

With the EU’s goal of

3% of GDP to be spent

on R&D activities it is

well above the target

32

sector and over half of the projects from 4 key markets only

The largest Wind Energy projects are from the Onshore Wind

Page 33: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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`

The UK has recently

become more

attractive to

renewable energy

investors following the

government’s decision

to reverse its block on

financial support for

onshore wind and solar

projects.

33

Page 34: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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Smart Grid

Solutions

An electrical grid that

integrates a range of

technologies to improve

energy efficiency.

Below is a list of topics covered within this section:

01European

Market

Overview

02Consumer

Adoption

03Market

Trends

34

Page 35: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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Public awareness in Europe regarding smart

grid technology has expanded tremendously

due to the adoption by the European Union of

the Third European Energy Liberalization

Package.

The main objective of the agreement is to

facilitate the installation of intelligent metering

systems to the grid across Europe with a target

of having 80% of households equipped with this

technology by end of 2020.

Already, over 99% of Italian households have

electronic meters and will transition into smart

net metering technology

35

for smart-metering systems by setting ambitious targets

The European Union is setting the standard for

Source: Statista, Early Metrics

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www.ocoglobal.com

European WideEuropean policies

support smart grid

development across

all member states

Forecasted

Value

European

Smart Grid

CAGR

European

Smart Grid

$133.7Bn 16%Governmental

Priorities

EU regulations support

smart grid development, as

it increases of renewable

energy efficiency by ensuring that energy can

be properly stocked and

distributed, irrespective of

a consumers proximity to a

energy source, thus reducing waste.

The Smart Grid Market is Growing

Western Europe's energy sector is forecast to commit

$133.7bn to smart grid infrastructure by 2027, as the market

is expected to grow at a 16% CAGR between 2019 and

2024.

36

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In countries such as Italy, rollouts are well under way with

the “Progetto Telegestore” initiative that began in 2002 and resulting in installation of over 30 million smart meters.

Similarly in countries like Norway, Sweden, Finland and

Denmark where the

penetration rates are above 50%.

Early

Adopters

In these countries there has been limited deployment.

However, national regulators and governments have

imposed strict deadlines and timelines for the full

deployments of smart meters to cover a certain percentage

of the area. This includes

countries like The UK, Spain and France.

Mandated

Rollouts

This includes countries in western Europe such as

Germany and Netherlands where there has been non-

mandatory or voluntary deployment of utilization of smart meters on a national

level. The implementation of nationwide rollout has been

only implemented in recent years

Voluntary

Rollouts

Source:.McKinsey

37

utilization of smart meters have three main categories

Within the European Union, country-level deployment and

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`

Source: - Statista, Early Metrics

Plug-in electric light vehicle sales worldwide 2015-2019

0.55

0.8

1.28

2.02

2.21

0.0

0.5

1.0

1.5

2.0

2.5

2015 2016 2017 2018 2019

The Top 10 countries in

2018 were Germany,

France, Belgium, the

Netherlands, the UK,

Sweden, Austria, Spain,

Italy and Portugal.

The Netherlands leads

with a 5.8% share

38

integration will be crucial in the widespread rollout of these vehicles

With Electrical Vehicle purchases and usage on the rise, smart gridSa

les

–m

illio

ns

un

its

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Circular and

Green

Construction

A building that in it’s

construction, design or

operation, reduces or

eliminates the negative impact

on the environment.

Below is a list of topics covered within this section:

01European

Market

Overview

02Market

Trends

03Key Market

Insights

39

Page 40: European Sector Profiling · commitment to the Paris Agreement, which aims to limit the increase in global average temperatures to 2°C and pursue efforts to keep it to 1.5°C. This

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General categories of green technologies that apply

to the buildings and facility industry, the key

technologies of interest are:

• Energy & Resource Efficiency (HVAC systems, daylighting, water management

and re-use)

• Alternative Energy Development (self-contained solar, wind and other power

sources)

• Advance Material Use (for insulation, walls, windows, structural)

• Information Management(energy modelling, sensors, life cycle assessment)

• Environmental / Health (occupant health & comfort, waste reduction,

carbon emissions management)

40

the way forward, with record decreases in gas emissions

European green building construction is leading

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`

Some of the most impressive green buildings

in the world are to be found in Germany and

Sweden.

The city of Freiburg, Germany boasts several

of them, including the Solarsiedlung (Solar

Settlement) and the Sonnenschiff (Sun Ship),

which is a small, vibrant community powered

entirely by solar energy in the city district of

Vauban.

Some buildings in Vauban, Germany are

producing more energy than the building

requires, and then the residents are able to

sell the excess energy back to the grid for

profit.

the way forward, with record decreases in gas emissions

European green building construction is leading

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In 2015, the French government made it a

legal requirement for all new buildings in

commercial zones to cover part of their

rooftops in plants or solar panels for what is

called a cool roof effect.

Cool roofs and green roofs lower the surface

temperatures in bright sunlight compared to a

conventional roof, offering a better

alternative, which helps reduce the amount of

energy it takes for these buildings to be

heated in the winter, or cooled in the summer.

Some green roofs also prevent rainwater

runoff, and are designed for water recuperation.

the way forward, with record decreases in gas emissions

European green building construction is leading

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13%

Decrease

The United Kingdom has made a legally

binding commitment to have net zero

greenhouse gas emissions by 2050.

Part of achieving this target will be exclusively

constructing net zero emissions buildings like

the London HQ of UKGBC.

The UKGBC have also worked to encourage

other major cities in the UK to take on

environmental challenges, helping places like

Manchester and Birmingham embrace

innovative, refreshing green design, as well as

encouraging the development of carbon-

neutral buildings throughout Europe.

the way forward, with record decreases in gas emissions

European green building construction is leading

11%

Decrease

35%

Decrease43

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Leading by Example: A Going-Green Case Study

The UK Green Building Council (UKGBC)

The UK Green Building Council (UKGBC) ran an exciting project to refurbish its office in a creative, clever, and environmentally friendly fashion.

It created an office with the lowest measured fit-out carbon footprint in the UK, in addition to

using 98% recycled materials over the course of the redesign.

The London headquarters of UKGBC now feature LED lighting, a living wall (implementing the concept of biophilic architectural design to positively affect health and comfort), and an innovative HVAC system following strict sustainability principals.

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Contents

European Clean

Tech Market

Overview

01

Exploring market size, opportunity, import trends and Canada’s position within Europe. Understanding the landscape and consumer preferences.

02 03 04Assessing the Impact

of COVID-19

Clean Tech: Sub-

Sector Deep Dives

Accessing The

European Market

Understanding the current state of play, opportunities created, trends and major changes to consumers and the market.

Exploring the detail of specific sub-sectors in Europe; their growth, key statistics and current trends.

Evaluating logistics and regulations of the European

market. Developing a market entry strategy to be successful.

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www.ocoglobal.comSource: Canadian Government

CETA offers opportunities to strengthen Canada’s relationship with the EU in the Clean Tech sector.

Key benefits for the industry include:

Service exporters can benefit from access to EU government procurement markets

Under CETA, the EU and Canada have agreed to accept the conformity assessment certificates issued by conformity assessment bodies located in the other party’s territory.

CETA streamlines entry and visa procedures to make it easier for Canadians to do business in the EU and for Canadian companies to hire EU professionals.

The Comprehensive Economic and Trade Agreement offers

significant advantages for companies in the Clean Tech industry

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Source: Government of Canada & European Commission

Growth Programme paving the way to Growth

Canada and Europe: The CETA and Clean

Simplifying business operations has led to an increasedand streamlined trade pathway between Canada andEurope.

An important feature of CETA is the greater access topublic procurement markets that has supported the EU’sand Canada’s initiatives towards cutting carbon

emissions, controlling air pollution, the better treatment ofwaste water, turning waste into energy, and moreefficient use of energy and overall advancements ofCleantech.

These procurements covered a broad range of clean-tech services, including engineering and integrated

engineering services, technical testing and analysisservices, including quality control and inspection, andsewage and refuse disposal, sanitation, and similarservices which leave a lot of room for future investmentareas.

The CETA also includes a system of mutual acceptance ofthe results of conformity assessment tests. These provisionscan reduce costs and shorten the Time-to-Market lengthfor European producers.

Electrical and electronic equipment, including electricalinstallations and appliances, and related components,measuring instruments and certain machinery that maybe relevant to the clean-tech sector are covered by themutual conformity assessment system.

By avoiding double-testing on both sides, the CETA canhelp reduce the costs of market entry, which canespecially make a difference for small clean-techenterprises interested in overseas markets.

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Canada has several initiatives to financially support

the implementation and development of cleantech

such as the Clean Growth Program (CGP), a $155

million investment in clean technology research

and development (R&D) and demonstration

projects in three Canadian sectors including

energy.

Additionally, the Green Infrastructure programs aims

to help accelerate the deployment and market

entry of next-generation clean energy

infrastructure.

Canada government also has a dedicated page

for Funding, Grants and Incentives towards clean

energy. Showing they key importance in

highlighting the energy sector.

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Growth Programme paving the way to Growth

Canada and Europe: The CETA and Clean

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Source: European Commission & Canadian Government

Rules of origin

To claim preferential duty under CETA a product must be deemed as originating in the territory of the exporting party.

The maximum percentage of the product’s total value deriving from sources other than Canada should not exceed

10%.

A product that is considered originating in Canada or the EU according to the terms of the Agreement can keep its originating status even if transported via a third country

Proof of origin

For imports into the EU under this agreement the proof of origin must be in the form of an ‘origin declaration’.

This declaration must be provided on an invoice, or any other commercial document (excluding a Bill of Lading) and describes the originating product in sufficient detail

to enable its identification and should contain the

Canadian exporter’s business number.

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and Canada have agreed on CETA

Specific provisions that the EU

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Source: EuroStat

Key Canadian freight airports include Pearson InternationalAirport in Toronto, which alone handles 45% of Canadas aircargo, in addition to Vancouver International Airport and

Calgary International Airport, all of which provide freightservices to Europe.

In Europe, The Charles de Gaulle International Airport inParis, France, which is Europe's largest cargo airport,handles over 3.9M tonnes per annum. Other significantairports include Frankfurt Airport in Germany and

Amsterdam Airport Schiphol in The Netherlands.

The typical transport route involves shipping goods fromeither the Port Of Montreal or the Port of Vancouver inCanada to key European ports, such as The Ports ofRotterdam, Antwerp or Hamburg. Additionally, since theCETA has come into effect, the number of Trade Routes

connecting Canada and Europe have expanded, andnow include passages through the Mediterranean basin.

Key Canadian Transport infrastructure includes The Port ofVancouver, which is Canadas largest port, and NorthAmericas third largest in terms of tonnage capacity, handling

over 76 Million metric tonnes due to its strategic location.

Meanwhile, the Port of Halifax in Nova Scotia is AtlanticCanada's largest container report. In Europe, The Port ofRotterdam in the Netherlands is the regions largest port,handling almost 469 million tonnes in 2018, Whilst, The Port ofAntwerp in Belgium is the second largest, handling over 200

million tonnes over the same period.

The Port of Hamburg in Germany is Europe's third largest portand is known for its extensive storage capacity, and is oftenused as a hub for re-exporting goods throughout Europe.

In contrast to seaports, Canadian air cargo ports moved only

1.27 Million metric tonnes annually combined.

are well developed, tried and tested routes

Transport and logistics between Canada and Europe

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Source: OCO Analysis

Air

Major cargo airports in the EU include

Charles de Gaulle, Schiphol and

Frankfurt. In Canada the Pearson

International Airport in Toronto handles

45% of Canada air cargo. Halifax

Stanfield Airport in Nova Scotia has

plans to increase cargo capacity at

the airport.

It is the costliest transport method

available and is not ideal for

transporting in bulk.

Sea

Key Ports in Canada include Vancouver,

Montreal & Price Rupert. The Port of Halifax

in Nova Scotia is the largest container port

in the Atlantic region. Key ports in the EU

include Rotterdam, Hamburg and Antwerp.

Less expensive than air and plays a major

role, with specialized vessels and container ships. Typically the slowest method of

transportation.

Road Rail

This route is highly flexible, low cost,

and is best for bulk and finished goods.

However, there are size and weight

restrictions and can affected by

weather, road conditions and traffic.

This route has limited flexibility. This is the

best for bulk and finished goods. Rail can

carry larger volumes over greater

distances.

The best transport mode will depend on a number of factors including cost-effectiveness of transportation, availability

and frequency of transportation mode, type of product, shelf life and well as the customers demandand requested timeline for delivery.

Many exporters have used multiple transportation modes to deliver their good to a market. Multimodal combines the best features of all modes and multiple uses.

51

Exporters have a number of options

to transport goods from Canada to Europe

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Source: European Commission

Commercial

Invoice

Customs

Value

Declaration

Freight

insurance Packing List

Contains the basic

information on the

transaction and is

always required for

customs

clearance.

Insurance invoice is

required for customs

clearance only when

the relevant data do

not appear in the

commercial invoice

indicating the premium

paid to insure the

merchandise.

All goods imported into the

EU must be declared to the

customs authorities of the

respective Member State

using the SAD. Declaration

must be drawn up in one of

the official languages of the

EU and must be acceptable

to the customs authorities of

the Member State where

the formalities are carried

out.

Must be

presented if the

value of the

imported goods

exceeds

20,000EUR (30,419 CAD)

Depending on the means of

transport used the following

documents may be required:

Bill of Lading

FIATA Bill of Lading

Road Waybill (CMR)

Air Waybill (AWB)

Rail Waybill (CIM)

ATA Carnet

TIR Carnet

Freight

Documents

Provides information

on the imported items

and the packaging

details of each

shipment.

Customs Import

Declaration (SAD)

52

General documents that must

accompany all products entering the EU

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Source: Canadian Government & European Commission

CETA does not remove the need for customs checks

and obtaining the relevant documentation. However the agreement

has streamlined this process and enables

customs checks prior to goods departing for the EU, in order to alleviate

some trade frictions.

Documentation &

Customs Clearance

The European Maritime And Fisheries Fund contributed

€71m to the blue economy for SMEs across the EU member

states supporting projects like Maritime surveillance. These

policies and practices improve the productive capacity of

domestic manufacturers, which in turn, reduces the cost of their

produce, making the marketplace more

competitive.

Maritime

Subsidies

53

While CETA has eliminated most tariffs

there are still a number of non-tariff barriers in place

Licensing

Procedures

To export certain goods to Europe, Canadians may need

a license, which allows government to restrict the

import of the product, simply by restricting the number of

licenses it released. Those items include food, and goods from the environmental, strategic,

energy and automotive sectors.

Sanitary & Phytosanitary

Requirements

Canadian exporters must meet EU rules on technical

standards, consumer safety, environmental

protection, animal or plant health and food safety E.g. fishery products will

need a certificate to demonstrate that the

product has been caught legally.

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Private sector companies

Strategic partnerships and collaboration with government

industry and academia are at the heart of success in Europe

Research and Technology

Development Organizations (RTO’s) and Industry Organisations

Education and Training Institutions

Federal, Provincial and Municipal

government departments and agencies

Cluster Organisations

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Established in 2001, OCO are specialists in internationaltrade and investment. We provide consulting, leadgeneration, research and representation services toEconomic Development Organisations and private firmsaround the world.

We have a proven track record of helping companiesaccess new markets, using our expertise, globalpresence and local networks to accelerate exports andinternational trade

We support companies with market analysis, go-to-market strategy, customer and partner search, meeting

agendas, representation, location selection andestablishment.

OCO is the delivery partner for Atlantic Chamber onthe European Trade Programme with our teams basedin Brussels, Frankfurt, Paris, London, Dublin and Belfast.

55

OCO is a boutique consulting firm that specializes in supporting

private sector companies with their international growth ambitions

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OCO Owned Office

OCO Franchised Office

KEY

56

OCO has a truly global presence

with 16 offices in key markets worldwide

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Europe Market Development

Program

Programme de dévelopment des

marches européans

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First mover opportunity to diversify and expand export sales in Europe.

In-market trade development support to enhance existing programs.

Up to 20 days of in-market consultant resources Office / meeting space (subject to travel

restrictions)

Eligible applicants: Export ready exporters Fully-developed, exportable product or service Financial plan and operational capacity to

execute market plan

Initial focus – Belgium, Netherlands and Germany

Possibilité d’être un précuseur dans la diversification et l’élargissement des ventes à l’exportation en Europe.

Dispositifs de soutien au development du commerce sur place pour completer les programmes existants.

Jusqu’à 20 journées d’accès aux ressources dedeconsultants sur place

Locaux pour les bureaux et les reunions (en function des

restrictions frontalières)

Critères d’admissibilité.• Exportateur prêt pour marché• Produit ou service entièrement développé et exportable • Capacité financière et fonctionelle d’executer le plan

commercial

Priorités initiales: Belgique, Pays-Bas et Allemagne

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Program Contacts / Responsables du programme

NB / N.-B. : Kristen Olson – E/courriel : [email protected] T/tél. : 506 461-4918

NS / N.-É. : Pamela Rudolph – E/courriel : [email protected] T/tél. : 902 424-6042

PE / î.-P.É. : Bonnie MacDonald – E/courriel : [email protected] T/tél. : 902

620-3508

NL / T.-N.-L : Khizer Abbasi – E/courriel : [email protected] T/tél. : 709 729-5680

ACOA / APECA : Alan Kinnie – E/courriel : [email protected] T/tél. : 506 381-

9340

ACC / CCA : Glenn Davis – E/courriel : [email protected] T/tél. : 902 292-

0121

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CHALLENGE.CREATE.COLLABORATE.

Thank You!