GREENING SMEs:

Actions by the European Commission

Chisinau, 22 March 2016

EaP GREEN Regional Conference

SMEs in EU

• SMEs accounted for 71.4% of the increase in

employment in 2014 in the non-financial

business sector

• SMEs, in 2014, accounted for 99.8% of all

enterprises in the non-financial business sector

in the EU28

• in 2014 SMEs employed almost 90 million

people - 67% of total employment

Context

• Raw materials + energy and water = 50% of total manufacturing costs of companies vs. 20% for labour costs.

• 60% of total waste is not recycled, composted or reused.

• 44% of large companies in the EU sell their scrap material to another company vs. 24% of SMEs.

• Resource efficiency savings potential: € 630 billion p.a. for European industry.

• 93% of SMEs are taking at least one action to be more resource efficient which, in most cases, is a low-cost action

• World market for environmental industries is growing by 5% a year and is expected to triple by 2030, but 87% of SMEs in the EU only sell in their national markets.

From a Linear Economy…

DISPOSE MAKE TAKE NATURAL RESOURCES

WASTE WASTE WASTE

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What are the limitations of a Linear Economy?

• lost value of materials and products

• scarcity of resources

• volatile prices of resources

• waste generated

• unstable supply of raw materials

• environmental degradation & climate change

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…to a Circular Economy

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What are the benefits of a Circular Economy?

• the value of products, materials and resources is maintained in the economy

• waste generation is minimized

• boost to the economy and competitiveness by creating new business opportunities and innovation

• brings economic, social

• and environmental gains

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• growth & job creation/ up to +7% GDP

up to 600 billion in savings/8% of annual turnover for business in the EU

estimated 170 000 direct jobs in waste management sectors created by 2035

• boosting competitiveness and ensuring security of supply

Circular Economy Package

Adopted by the Commission 2 December 2015

Action Plan Communication

List of Follow-up Initiatives (Annex)

4 Legislative proposals on waste

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Circular Economy Package

Objective:

To close the loop" of product lifecycles through greater recycling and re-use, and bring benefits for both the environment and the economy

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The revised legislative proposal on waste:

A common EU target for recycling 65% of municipal

waste by 2030;

A common EU target for recycling 75% of packaging

waste by 2030;

A binding landfill target to reduce landfill to maximum

of 10% of all waste by 2030;

A ban on landfilling of separately collected waste

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Circular Economy Package

Key actions:

Funding of over €650 million under Horizon 2020 and €5.5 billion

under the structural funds;

Actions to reduce food waste including a common measurement

methodology, improved date marking, and tools to meet the global

Sustainable Development Goal to halve food waste by 2030;

Development of quality standards for secondary raw materials to

increase the confidence of operators in the single market;

Measures in the Ecodesign working plan for 2015-2017 to include

reparability, durability, recyclability

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Circular Economy Package

Other concrete and ambitious actions

• legislation on fertilisers, including organic and waste-based fertilisers

• minimum requirements for the reuse of wastewater

• actions on Green Public Procurement

• quality standards for secondary raw materials

• strategy on plastics, including marine litter

• interface between chemicals, products and waste legislation

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Adopted in July 2014. Draws together new or revised EU level action that promote resource efficiency and circular economy among SMEs (information, capacity building, promoting cooperation and networking, direct financing, facilitating access to finance, etc.)

Positive agenda: focus on competitiveness and business opportunities

• To improve SME resource efficiency as a driver of companies’ competitiveness.

• To enable SMEs to turn environmental challenges into business opportunities by improving productivity and reducing costs.

Green Action Plan for SMEs

Action for capacity building:

• Establishment of a European Resource Efficiency Excellence Centre (COSME Work

Programme 2015) and development of a resource efficiency self-assessment tool

• Information on drivers and obstacles through further Eurobarometer surveys ad study into

the SME aspects of circular economy

• Reinforce the resource efficiency element in the Enterprise Europe Network (EEN): e.g.

European Resource Efficiency Campaign, awareness raising activities, advisory services,

technology transfer database, transversal Resource Efficiency Sector Group, etc.)

• Strengthen environmental issues in the workstream on clusters , e.g. thorugh the Cluster

Excellence Programme (COSME 2014-2020), European Cluster Observatory, European

Strategic Cluster Partnership, cluster matchmaking sessions, alliance building on

internationalisation, etc.

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Action on finance:

• Horizon 2020 funds eco-innovative SMEs to develop, grow and internationalise including

through collaborative R&D actions.

• The LIFE programme will promote the uptake of the circular business models and resource

efficiency practices in SMEs.

• The financial instruments under COSME will support SMEs to eco-innovate, introduce energy

and resource efficiency actions and internationalise.

• The European Investment Bank (EIB) will provide financing through financial intermediaries for

resource efficiency improvements linked to ecosystem services and climate change adaptation

with the Natural Capital Financing Facility (NCFF).

• Private Finance for Energy Efficiency instruments (PF4EE) can support SMEs undertaking small

energy efficiency investments.

• A network and community of public and private financiers and investors that support eco-

innovation will be established.

• European Regional Development Fund (ERDF) includes possibilities for investments in

competitiveness, energy efficiency and renewable energy use in SMEs.

• Guide for Managing Authorities of the European Structural and Investment Funds to support

resource efficiency in SMEs

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The Executive Agency for Small and Medium-sized

Enterprises (EASME)

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Set-up by the European Commission to manage on its behalf several EU programmes Programmes (inter alia): • Most of COSME, including Enterprise Europe Network

(EEN), Your Europe Business;

• Part of Horizon 2020, the EU Framework Programme for Research and Innovation;

• Part of the EU programme for the Environment and

Climate action (LIFE)

• Part of the European Maritime and Fisheries Fund (EMFF)

Horizon 2020 Environment and Resources

Projects on:

• A resource- and water-efficient, climate-change resilient economy and society,

• The protection and sustainable management of natural resources and ecosystems, and

• A sustainable supply and use of raw materials.

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LIFE Programme

• Action Grants in the fields of climate change adaptation and mitigation, environment and nature,

• Integrated projects on climate adaptation and mitigation,

• Capacity building projects,

• NGO operating grants, and

• Projects resulting from these calls for proposals (as of 2014).

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Horizon 2020 SILC II and CIP Eco-innovation initiative

• Research and innovation activities which develop innovative, cost-effective technologies for reducing the greenhouse gas emissions of manufacturing and process industries

• Support innovation among SMEs and to improve their competitiveness

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On the way…

• Almost all EU SMEs (92%) comply with environmental legislation – with 19% going further than required

• The majority of SMEs in the EU act to become more resource efficient in order to reduce costs (63%), although 28% say the environment is one of the top priorities for their company

• More than half of SMEs (55%) encounter difficulties when trying to set up resource efficiency actions

• Just 12% of SMEs have bid for a public procurement tender that included environmental requirements

• One quarter of the EU’s SMEs offer green products or services (26%), with a further 7% planning to do so in the next two years

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More information

• http://ec.europa.eu/environment/circular-economy/index_en.htm

• http://ec.europa.eu/growth/smes/business-friendly-environment/green-action-plan/index_en.htm