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Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research and Energy (ITRE) Dr. Katharina Reuter Ecopreneur.eu, European Network of National Green Economy Associations UnternehmensGrün, Federal Association of Green Business (Germany)

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Page 1: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Public Hearing

Green Action Plan for SMEs: Opportunities and Challenges(9 November 2015)

Parliamentary Committee on Industry, Research and Energy (ITRE)

Dr. Katharina ReuterEcopreneur.eu, European Network of National Green Economy AssociationsUnternehmensGrün, Federal Association of Green Business (Germany)

Page 2: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research
Page 3: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Objectives

All member organizations are unified in their acceptance of

responsibility for our economy, our environment and our

society.

• Green New Deal and reformation of EU economy

• Promotion of social innovation

• Focus on regional economic structures and SMEs

Together we set a course for sustainable economic

policies.

Green action plan for SMEs 3

Page 4: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research
Page 5: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green action plan for SMEs 5

…more than 1.500 sustainable companies…

Page 6: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green action plan for SMEs 6

CircularEconomy

positivefootprint

CO2-neutral

Economy for theCommon good

WE NEED

THE

TRANSFORMATION

OF THE

ECONOMY

Page 7: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green action plan for SMEs 7

External costs not internalised

The capital intensity of sustainable innovation often higher than regular innovation

Investors lack knowlegde regarding sustainableinnovations >> risks are often estimated too high

It‘s difficult for SMEs tobring sustainable productsto the market

Current economic system does not value ecological andsocial innovations STARTING POINT 1:

MARKET

FAILURE

Page 8: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green action plan for SMEs 8

EU Commission communication

• Recource efficiency = important factor for competitiveness of

European economy

• Raw materials = 40% of production costs

• Saving potential of 630 Mrd. EUR p.a.

• Improvement of resource efficiency only possible if SMEs gained additional

knowledge regarding resource efficiency >> start here!

STARTING POINT 2:INCREASING PRESSURE FORRESSOURCEEFFICIENCY

Page 9: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Assessing the Potential Cost Savings and Resource Savings of Investments in 4 SME sectors

Green action plan for SMEs 9

RPA (2015): Assessing the Potential Cost Savings

and Resource Savings of Investments in 4 SME sectors,

report for DG Environment, February 2015, Loddon,

Norfolk, UK

Page 10: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green action plan for SMEs 10

Advanced

Green products,

green business models

Interested

Enterprises,

partly implementing

green advancements,

progressing

Uninvolved

Enterprises

WHERE ARE SMEs IN REGARDS TO SUSTAINABILITY & TRANSFORMATION ?

Page 11: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green action plan for SMEs 11

Important for the success of SMEs in Green Economy:1. Market2. Incentives >> Financing represents highest obstacle3. Legislation4. Measures in value chain

Advanced

Green products,

green business models

Interested

Enterprises,

partly implementing

green advacements,

progressing

Uninvolved

Enterprises

Page 12: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green action plan for SMEs 12

European Resource

Efficiency Excellence Centre

Horizon2020

COSME

2014-2020

EFRE and EMFF-

Support SMEs

LIFE: Funding of energy

efficiency measures in SMEs

Network Eco-Inn

(Investors<> SMEs)

Climate Knowledge &

Innovation Community

(Climate-KIC)

Private financing in the area

of energy efficiency (PF4EE)Homepage:

Financing

Investment and

structural funds

Flash Eurobarometer on

SMEs and Resource

Efficiency

Erasmus+

Page 13: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green action plan for SMEs 13

! Both of these drivers for innovation are virtually absent in

the GAP for SMEs!

a. Market demand b. Legislation

SMEs and also large enterprises reactstrongly upon…

Page 14: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

14

Call 1Market demand:circular public procurement and economic incentives

Call 2Legislation:EU-Directive on CircularDesign Directive

Page 15: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Recommendation I: increase market potential with…

Green action plan for SMEs 15

…Prices, stating ecological and social truth (internalize external costs)• Well funtioning emission trading scheme (EU-ETS) or CO2-tax• Taxes: lower taxes on work; higher taxes on raw materials, resource use• Incentives for consumers, e.g. Adaption of VAT rules for Circular Economy

… ambitious targets:• Ambitious and binding targets for Renewables, Energy Efficiency, Energy Savings• Binding target energy efficiency (30 percent until 2030)

… EU as launching customer / public procurement:• Concrete specifications on sustainability and green products in public procurment• Example: Fair IT (e.g. fairly-produced computer mouse, Nager IT) will not be selected in public

procurement due to higher prices

Page 16: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Recommendation II: promote best practice

Green action plan for SMEs 16

a) Non-financial reporting (EU Draft law): support SMEs financially

b) Support Economy for the common good:• EESC 09/2015: European Economic and Social Committee recommends adding the principles of

the “Economy for the common good” in the work of the European institutions • Rapporteur Carlos Trias Pintos demands that „those enterprises, guided by sustainable and

ethical principles, will be rewarded in the future“• Economy of the common good-certified enterprises support GAP >> promote drafting „Common Good

Balance Sheets“

c) Business cooperation:• Easily accessible funding for cooperation projects of enterprises (also with NGOs)• Regional cooperation = Hot spots; especially in cross-border regions (cross-border tenders) • Easily accessible information on pilot projects and funding possibilities

(UEAPME: „until now very unclear“)

Page 17: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Recommendation III: Sustainable Trade?

Green action plan for SMEs 17

• The pioneers of tomorrow (Ecopreneurs) are nowadays in schools, universities and training institutes • Green Skills: are not included, however, it’s an important aspect in the transformation towards a resource

efficient economy (Source: UEAPME)

Aim: "developing European leadership in green processes and technologies“ >> TTIP and CETA should therefore set new standards for sustainable trade – but they don’t! …change in trade… weakening of regional markets and standards…

Recommendation IV: Education & Training

COSME or Horizon2020 support SMEs in sustainable innovation. However, the real challenge is that we do not have the courage to develop integrated European markets, which are truly sustainable – and also includeregulation and legislation.

Page 18: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green action plan for SMEs 18

Page 19: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green Action Plan for SMEs

+ strong Action Plan for Circular Economy

= SUCCESSFUL SUPPORT OF GREEN ENTREPRENEURSHIP

& TRANSFORMATION OF THE ECONOMY

Green action plan for SMEs 19

Page 20: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Green Action Plan for SMEs

+ strong Action Plan for Circular Economy

= SUCCESFUL SUPPORT OF GREEN ENTREPRENEURSHIP

& TRANSFORMATION OF THE ECONOMY

Green action plan for SMEs 20

• No knowledge in large enterprises about the

impotance of circular economy

• Our members show, that SMEs can be very

successful in CE

• Value chains involve both SMEs and large

enterprises

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Green action plan for SMEs 21

Climate-KIC (Climate Knowledge & Innovation Community):High Performance Accelerator for start-ups andSMEs. Aim: 400 start-ups/year >> when will thisnumber be reached? Where is the initiative now?

Horizon2020: The decision process (8 months) is too long for acute-innovative projects. 6 weeks would be much better. Funding for projects that already started should be made possible.

European Enterprise Promotion Award:Since 2013 Catergory for supporters of green marketsIdea: CE-Award (Circular Economy) >> very welcome!!

What is „green entrepreneurship“?

What is NOT „green“, but „green washing“?

Page 22: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

www.ecopreneur.eutwitter.com/EcopreneurEUwww.facebook.com/ecopreneur.eu

Thank you foryour attention!

Page 23: Public Hearing Green Action Plan for SMEs: …...Public Hearing Green Action Plan for SMEs: Opportunities and Challenges (9 November 2015) Parliamentary Committee on Industry, Research

Business associations about the GAP for SMEs:

Green action plan for SMEs 23

Pionier-SMEs (green entrepreneurs) do not have

problems with regulation. Polluting practices of

conventional enterprises should be sanctioned

much more.

Business Europe und UEAPME welcome the

fact that no new SME- related regulation is

planned in GAP

Business Europe, UEAPME ECOPRENEUR.EU

Eurochambers: “We need more concrete and practice-oriented support actions for SMEs when consulted, so we are disappointed

that the Commission’s proposals to this effect are largely trivial. Does it really require a new action plan to

announce everyday measures like updating Commission websites or using the Enterprise Europe Network to

inform SMEs?”

Eurochambers report that a lack of time and expertise is the main obstacle to green actions among SMEs. Instead of being flooded with information, they want concrete, tailored guidance on day-to-day operations, which should be largely cost-neutral and practice-oriented.