Explanatory Memorandum to COM(2021)87 - Joint Undertakings under Horizon Europe - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2021)87 - Joint Undertakings under Horizon Europe. |
|---|---|
| source | COM(2021)87  |
| date | 23-02-2021 |
• Reasons for and objectives of the proposal
2027) - aims to increase the EU’s research and innovation impact by combining European
partnership co-investment with additional private and public sector funds in areas where the scope and scale of the research and innovation resources can help achieve the EU s Horizon Europe priorities notably, its Pillar II - Global challenges and European industrial competitiveness.
[Article 8(1)(c)] of the Horizon Europe Regulation stipulates that institutionalised European partnerships based on Article 185 and 187 TFEU shall be implemented only where other parts of the Horizon Europe programme, including other forms of European partnerships would not achieve the objectives or would not generate the necessary expected impacts, and if
justified by a long-term perspective and high degree of integration”.
In the Horizon Europe Regulation, the c o- le g isl ators have also identified eight priority areas for possible institutionalised European partnerships on the basis of Articles 185 or 187 TFEU. Based on this, a set of twelve initiatives were identified as candidates that were subject to a coordinated impact assessment1.
This proposal covers nine institutionalised European partnerships based on Article 187 TFEU, e stablishing individual joint underta kings for their implementation. In addition, the European Commission also adopted a proposal for an institutionalised European Partnership for high performance computing, based on Article 187 TFEU [COM(2020) 569 final], and it plans to adopt a proposal for a European partnership on metrology, based on Article 185 TFEU [add reference]. Two initiatives – one on cooperative, connected and automated mobility and another one on innovative small and medium-sized enterprises - were also among the initial candidate institutionalised European partnerships. However, the impact assessment process concluded that another intervention form would be more appropriate.
• Consistency with existing policy provisions in the policy area
As part of the Multiannual Financial Framework (MFF) for 2021-2027, Horizon Europe will be more impact driven with a strong focus on delivering European added value. It will also be implemented more effectively and efficiently, notably by ensuring coherence, coordination and complementarity within Horizon Europe, as well as with other EU, local, regional, national and, where relevant, international initiatives and with their related funding sources.
Horizon Europe aims to respond to the global challenges that the EU is facing, which call for a radical new approach to developi ng and deploying new technologies and innovative
1 Only 12 were subject to the coordinated impact assessment, as one high performance computing initiative was included in a 2017 impact assessment (SEC(2018) 47).
2 EC (2018) A Modern Budget for a Union that Protects, Empowers and Defends. The Multiannual Financial Framework for 2021-2027. Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions, COM(2018) 321 final.
solutions for citizens and the planet on a scale and at a speed never achieved before, and to adapting our policy and economic framework to turn global threats into new opportunities for our society and economy, citizens and businesses.” While Horizon Europe continues the
efforts to strengthen the EU’s scientific and technological bases and foster competitiveness, it
takes a more strategic and mpact-based approach to EU research and innovation investment. Consequently, the object ives of Horiz on E u r op e highlight the need “to deliver on the Union strategic priorities and contribute to the realisation of EU objectives and policies, contribute to tackling global challenges, including the Susta inable Development Goals by following the
principles of the Agenda 2030 and the Paris Agreement.” 3
European partnerships are key approaches in Horizon Europe. They c ompl e ment the existing policy framework by addressing the global challenges and EU priorities that require critical mass and a long-term vision that is agreed and committed to by the respective sectors. The challenges of climate and environmental change, attaining European technological leadership and open strategic autonomy, and ensuring a sustainable and inclusive recovery require directing dispersed research and innovation efforts towards a shared vision on the required transformation process.
By teaming up with both the public and private sectors, European partnerships help speed up new solutions, particularly those that can decrease greenhouse gas emissions by 2030 in line with the European Green Deal targets, and help achieve the green and digital transitions. They enable systematic engagement with a variety of stakeholders and end users, including standardisation bodies and international partners to ensure that these solutions are taken up and can ultimately deliver on the ambitious goals. They also help to strengthen the European Research Area by aligning research and innovation agendas, improving skills, and increasing the absorption capacities of European businesses.
The nine institutionalised European partnerships based on Article 187 TFEU are fully in line with the Horizon Europe’s new impact-driven policy approach to European partnerships.
They make up part of the portfolio of 49 candida te European partnerships, thereby ensuring a coherent landscape. As part of the strategic planning, it was decided that institutionalised European partnerships would be used for the objectives and impacts that could not be achieved by other forms of European partnerships and for those priorities with a long-term perspective and high degree of integration.
• Consistency with other Union policies
As part of the 2021-2027 MFF, Horizon Europe - the new EU Framework Programme for Research and Innovation will play a central role leading the social, economic, and
environmental transitions needed to achieve EU policy priorities. Under Horizon Europe’s
strategic planning process, the first strategic plan for 2021-2024 has been developed. The key strategic orientations for research and innovation support, co-designed with stakeholders, are
fully in line with EU priorities. The actions under Horizon Europe’s Pillar II “Global Challenges and European Industrial Competitiveness” will therefore target selected high
impact themes that can significantly contribute to delivering on the EU’s political priorities.
The European partnerships are firmly set within the context and structure of Horizon Europe,
societal challenges that constitute Horizon Europe’s Pillar II research and innovation
priorities. They will play an important role in achieving the Commission’s strategic
Article 3, Common understanding on the proposal for a Horizon Europe Framework Programme.
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Europe, while strengthening the resilience and competitiveness of European industry. The contribution of the nine institutionalised European partnerships covered by the proposal to EU priorities are as follows:
Circular Bio-based Europe: This partnership contributes significantly to the 2030 climate targets, paving the way for climate neutrality by 2050, and increase the sustainability and circularity of production and consumption systems, in line with the European Green Deal. It aims to develop and expand the sustainable sourcing and conversion of biomass into bio-based products by focusing on multiscale biorefinery processing, and, by applying circular economy approaches such as utilisation of biological waste from agriculture, industry and municipal sectors. It also aims to support the deployment of bio-based innovation at regional level with an active involvement of local actors and with a view to reviving rural, coastal and peripheral regions.
Clean Aviation: This partnership puts aviation en route to climate neutrality, by accelerating the development, integration, and validation of mainly disruptive research and innovation solutions so that they can be deployed as soon as possible. It also aims to develop the next generation of ultra-efficient low-carbon aircraft, with novel power sources, engines, and systems, which will emerge from the research and demonstration phase at a high technology readiness levels (TRL). Supporting aviation research and innovation improves competitiveness and employment in the aviation sector that will be especially important for the recovery. Some objectives to be achieved by 2030: demonstrate disruptive aircraft technological innovations able to decrease net emissions of greenhouse gasses by no less than 55% by 2030, compared to 1990 levels and on a pathway towards reaching climate neutrality by 2050.
Clean Hydrogen: This partnership will accelerate the development and deployment of European value chain for clean hydrogen technologies, contributing to a sustainable, decarbonised and fully integrated energy system and to the communication on "a hydrogen strategy for a climate-neutral Europe” (COM/2020/301). Focus is placed on producing, distributing and storing clean hydrogen and, supplying hard to decarbonise sectors such as heavy industries and heavy-duty transport applications. Some objectives by 2030: produce clean hydrogen at ~€1.5-3/kg, which will require reaching the 2030 targets in efficiency improvement and lowering CAPEX costs. In addition, this also assumes the availability of renewable electricity at favourable prices, as well as allowing penetration into mass markets, and reducing distribution costs to less than EUR 1/kg of hydrogen at scale.
Europe’s Rail: This partnership will speed up the development and deployment of innovative technologies (especially digital and automation) to achieve the radical transformation of the rail system and deliver on European Green Deal objectives, for example, shift a substantial part of the 75% of inland freight carried by road towards transport by rail and inland waterways. The partnership will develop solutions that are widely supported across the EU, resulting in a market uptake of up to 75% by 2030, improving the competitiveness of rail and supporting the European technological leadership in rail.
Global Health EDCTP3: This partnership will deliver new solutions for reducing the burden of infectious diseases in sub-Saharan Africa, and strengthen research capacities to prepare and respond to re-emerging infectious diseases in sub-Saharan Africa and across the world. By 2030 it aims to have progressed to license at least two new health technologies tackling infectious diseases, and to have supported at least 100 research institutes in 30 countries to enable effective and rapid research response to develop health technologies against re-emerging epidemics.
Innovative Health Initiative: This initiative will help create an EU-wide health research and innovation ecosystem that facilitates the translation of scientific knowledge into tangible innovations. It will support the development of safe, effective, people-centred and cost-effective products and services that target key unmet public health needs and drive cross-sectoral health innovation for a globally competitive European health industry. It will cover prevention, diagnostics, treatment and disease management. Some of its 2030 targets would include launching at least 30 large scale cross-sectoral projects, focusing on health innovations as well as exhibiting the feasibility of integrating health care products or services.
The initiative will contribute to reaching the objectives of Europe’s Beating Cancer Plan4, the
new Industrial Strategy for Europe5 and the Pharmaceutical Strategy for Europe6.
Key Digital T echnologies Key digital technologies encompass electronic components, their design, manufacture and integration in systems and the software that defines how they work. The overarching objective of this partnership is to support the digital transformation of all economic and societal sectors, make the transformation work for Europe and support the European Green Deal. By 2030 it aims that EU leadership in key digital technologies will strengthen industrial strongholds, having seized emerging opportunities to establish technological sovereignty and boost c ompetitiveness.
Single European Sky ATM Research: The initiative aims to digitally transform air traffic management, to make European airspace the most efficient and environmentally friendly sky
to fly in the world and to support the competitiveness and recovery of Europe’s aviation
sector following the COVID-19 crisis. Goals include: improving connectivity, air-ground integration and automation, increasing flexibility and scalability of airspace management and the safe integration of unmanned aircraft. By 2030 it aims to have delivered the solutions identified in the European Air Traffic Man a g e me nt Master Plan for Phase D at TRL 6.
Smart Networks and Services: This partnership will support technological sovereignty for smart networks and services in line with the new industrial strategy for Europe and the 5G cybersecurity toolbox It aims to help resolve soci etal challenges and to enable the digital and green transition. For the COVID-19 crisis, it will support technologies that respond to both the health crisis and the economic recovery. The partnership will enable European players to develop the technology capacities for 6G systems as a basis for future digital services towards 2030. It will help lead markets for 5G infrastructure and services to develop in Europe by coordinating 5G de plo y ment with Connecting Europe Facility 2 Digital (CEF).
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
These proposals for institutionalised European partnerships are based on Article 187 TFEU according to which the EU may set up joint undertakings or any other structure necessary to efficiently carry out EU research, technological development and demonstrati on programmes.
https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12154-Europe-s-Beating-Cancer-Plan. COM(2020) 102. COM(2020) 761.
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• Subsidiarity (for n on - e x c lu sive competence)
Research is a shared competence between the EU and its member states according to the TFEU. Article 4 (3) specifies that in the areas of research, technological development and space the EU can carry out specific activities, including defining and implementing
programmes, without affecting the member states’ freedom to act in the same areas.
The proposed initiatives focus on areas where there is a demonstrable value added in acting at EU level due to the scale, speed and scope of the efforts needed for the EU to meet its long-term Treaty objectives and deliver on its strategic policy priorities and commitments. The proposed initiatives should also complement and reinforce national and sub-national activities in the same area
As European partnerships are based on a common long-term Strategic Research and Innovation Agenda, they are well suited to address complex cross-border challenges. They are able to address a set of systemic, market and transformational failures, which is a precondition for accelerating the development and diffusion of innovations. They focus on:
• strengthening collaboration and knowledge exchange between key actors in the European research and innovation system, including cross-disciplinary and cross-sectoral collaboration and an improved integration of value chains and ecosystems;
• ensuring alignment and integration of European, national / regional and industrial research and innovation strategies, programmes and investments with the agreed directions;
• creating critical scales of investments on common priorities and increasing private investment in research and innovation;
• reducing risks and uncertainties for industry that are related to investing in research and innovation activities and new technologies / solutions by sharing risks and providing investment predictability.
Action at national level or by industry alone cannot achieve the scale, speed and scope of research and innovation support needed for the EU to meet its long-term Treaty objectives, deliver on its strategic policy priorities (including the climate and energy goals set out in the Paris Agreement, and the European Green Deal), and to contribute to tackling global challenges and m eeti n g the Sustaina ble De ve lopm e nt Goa ls (S DGs).
• Proportionality
The proportionality principle underpins the entire approach that led to this proposal. The political and legal context has changed since the current partnerships were established. There is now a greater focus on the need to rationalise key EU policy priorities and ensure they have a measurable impact. Given the new context, it is important to only opt for a European Partnership when there is a real and demonstrable added value. Each institutionalised European partnership must therefore prove its added value –– notably that its objectives cannot be more effectively achieved through simpler means, including the default approach of
traditional Horizon Europe calls or simpler partnership forms, such as “co-programmed partnerships”.
The proportionality of the candidate partnerships was assessed according to the following two-step logic:
Justification of the use of a partnership approach in a given area (including considerations on additionality, directionality and a link with strategic priorities) instead of other forms of intervention available under Horizon Europe;
If the partnership approach is deemed appropriate, proportionality considerations guided the assessment of which type of partnership (co-programmed, co-funded or institutionalised partnership) would be most effective in achieving the intended objectives.
• Choice
of instrument
This proposal aims to establish nine joint undertakings based on Article 187 TFEU. For this kind of structure, Article 188 i TFEU requires the adoption of a Council Regulation.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER
Contents
- CONSULTATIONS
- Horizon Europe - the new EU Framework Programme for Research and Innovation (2021 -
- As part of the 2021-2027 MFF, Horizon Europe - the new EU Framework Programme for Research and Innovation will play a central role leading the social, economic, and
- strategic planning process, the first strategic plan for 2021-2024 has been developed. The key strategic orientations for research and innovation support, co-designed with stakeholders, are
- objectives, namely, accelerating the transition towards a green, climate neutral, and digital
- Option 1 - Co-programmed European partnership
- The impact assessment accompanying this proposal looks at all initiatives separately, but also takes a cross-cutting approach, identifying ways to increase efficiency and coherence, and
- Indicative
ANDIMPACTASSESSMENTS
Ex-post evaluations/fitness checks of
existing legislation
Conclusions of past evaluations were thoroughly considered in developing Horizon Europe. These findings have also shaped the new mpactbased approach for partnerships and have helped to operati ona li se the criteria for their selection, implementation, monitoring, and
phasing out. As indicated in Annex 5 of Horizon Europe’s impact assessment, the areas for
improvement were the following:
• The Horizon 2020 interim evaluation concluded that the overall partnership landscape had become overly complex and fragmented. While the overall number of research and innovation partnerships in Horizon 2020 is about 100, they represent on average about 25% of the available Horizon 2020 budget with public-private partnerships (PPP) accounting for about 17.5% of the Horizon 2020 budget. The interim evaluation identified the need to rationalise the overall European research
and innovation partnership landscape, improve their partnerships’ openness and
transparency and link them with future EU research and innovation strategic priorities and Horizon Europe missions.
• The Article 187 evaluation pointed out that PPP activities need to be aligned with EU, national and regional policies. It recommended a revision of the key performance indicators as well as the inclusion of a wider range of stakeholders in the governance structures or in submitted proposals. It also highlighted the need to improve and enforce communication particularly, to ensure effective dissemination of project results.
For individual initiatives, the thematic parts of each impact assessment accompanying this proposal explain how lessons from past evaluations, both positive and negative, have also been applied.
• Stakeholder consultations
This proposal and the accompanying impact assessments were subject to a wide stakeholder consultation, both during the preparation of the Horizon Europe proposal and later on for all European partnership candidates:
Member states were consulted through the Horizon Europe Programme Committee’s ‘Shadow Strategic Configuration’;
— An open public consultation (OPC) for candidates for institutionalised partnerships based on Article 185 and 187 of the TFEU was held between 11 September and 6 November 2019 and generated over 1 600 replies;
— Targeted consultations were held to prepare the impact assessments for 12 candidate institutionalised partnerships. For each candidate, an external consultant interviewed a representative sample of stakeholders, asking their opinion on the need for and added value of EU action.
The findings of all stakeholder consultations have been integrated in the individual impact assessments accompanying the proposed partnerships and have helped determine the selection of the preferred mode of implementation.
• Collection and use of expertise
To prepare the impact assessment for this proposal, the Commission asked an external contractor to carry out a study on the candidate institutionalised partnerships and to develop a common methodology for assessing the effectiveness, efficiency, coherence and Union added value of the initiatives to ensure comparability. The external study is publicly available at the EU Bookshop and is referred to in the impact assessments for each initiative. The Commission used the evidence collected for the study, particularly on stakeholder opinions, ex-post evaluation results, identification of the problems to be addressed and expected im pacts of the policy options, but also conducted its own analysis of this information in light of recent policy changes and additional evidence that became available following the conclusion of the study.
• Im pact assessment
Once the candidate institutionalised European partnerships were identified, the impact assessment process was launched to identify the most suitable implementation arrangement for each initiative from the following policy options:
Option 0— Baseline option — Traditional calls under the framework programme
Option 2 - Co-funded European partnership
Option 3" Institutionalised partnership
• Sub-option 3a institutionalised partnerships based on Art 185 TFEU
• Sub-option 3b institutionalised partnerships based on Art 187 TFEU.
The comparative assessment of the merits of each option included an analysis of the relevance of the intervention, its proportionality and effectiveness in achieving the intended objectives.
This resulted in a tailored approach being suggested for each candidate, ranging from administratively lighter forms of cooperation to institutionalised ones, depending on the intended policy objectives, specific challenges and desired outcome identified for each candidate.
The individual impact assessments were presented to the Regulatory Scrutiny Board in three separate hearings between March and June 2020. Two impact assessments received a positive opinion on their first reading, six received a positive opinion with reservations and four received a negative opinion and had to be resubmitted to the Board. The mains criticisms for
the cases that received a negative opinion concerned: the scope of the proposed initiative, the need to clarify the problems and objectives that the proposed initiative could effectively tackle under the next framework programme, the impact of discontinuing a pre-existing initiative (where applicable) and, in some instances, the difference between the preferred option and other alternatives.
The four impact assessments with a negative opinion on first reading were resubmitted. Three of them received a positive opinion with reservations and the fourth received a positive opinion.
• Regulatory fitness and simplification
The proposed initiatives respond to the need to simplify the approach to partnerships as put forward by the Horizon Europe proposal. This need was endorsed by the Parliament and the Council. As a result, it was agreed that Horizon Europe would support three types of partnership: co-funded, c o- pro g ra mm e d and institutionalised (based on Article 187 or 185 TFEU and EIT KICs). This is in line with the spirit of the Regulatory Fitness and Performance Programme (REFIT).
The impact assessment accompanying this proposal looks at all initiatives separately, but also takes a cross-cutting approach, identifying ways to increase efficiency and coherence, and
therefore maximise each partnership’s impact. It identifies common elements that will help all
initiatives meet their objectives while reducing costs, for example by adapting the governance arrangements to ensure coherence with other initiatives. This approach is fully in line with the better regulation framework and simplification efforts.
The Single Basic Act contributes to the goal of rationalising the EU research and innovation funding landscape and to a strategic and mpact-driven approach to European partnerships.
The Horizon Europe Regulation includes several common requirements for setting up and implementing European partnerships. By adopting a modular approach, the Single Basic Act allows the common provisions for all joint undertakings to be translated coherently (in Part One) allowing sufficient flexibi lity to meet the specific needs of each of them (in Part Two).
• Fundamental rights
This Regulation respects fundamental rights as set out in the Charter of Fundamental Rights of the European Union.
Most of the proposed initiatives do not have a direct impact on fundamental rights. When they do, a specific assessment is included in section 6 of each impact assessment.
4. BUDGETARY IMPLICATIONS
The maximum Union financial contribution to the joint undertakings shall be EUR 9 600 million , including EF TA contributions, paid from the appropriations in the general budget of the Union allocated to the Horizon Europe Specific Programme implementing the Horizon
Europe Framework Programme. This contribution will be made from Pillar II ‘Global Challenges and Industrial Competitiveness’. The funds made available by the Union to cover
operational costs will be at least matched by contributions from members other than the Union.
amount in current prices.
The administrati ve costs of the joint underta kings shall not exceed EUR 501.174 million for the duration of the joint undertakings. These costs will be covered through financial contributions by the Union and the members other than the Union.
5. OTHERELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
The partnerships will be monitored and evaluated in line with Articles 45 and 47 and Annex III of the Horizon Europe Regulation. The interim and ex-post evaluations will be supported by external contractors and fed into the overall Horizon Europe evaluations. In accordance with the criteria set for European partnerships, the evaluations will assess the most effective policy intervention mode for any future action, as well as the possible renewal of the partnership within the overall European partnerships landscape. In the absence of renewal, appropriate measures will be developed to ensure the phasing-out of framework programme funding according to the conditions and timeline agreed with the partners of the partnership.
• Detailed explanation of the specific provisions of the proposal
The institutionalised European partnerships are designed to increase coherence and to maximise impact in an evolving research and innovation landscape. The proposed Council Regulation consists of three parts:
• Part One contains provisions common to all joint undertakings with the aim to streamline and harmonise the legal boundary conditions and provide a modular approach on which individual joint undertakings can base their operational architecture.
• Part Two contains provisions that are specific to individual joint undertakings that allow for the necessary flexibility to take into account operational and policy needs.
• Part hree contains final provisions applicable to all joint undertakings.
• Article 4: objectives and principles for joint undertakings are firmly set within the objectives and structure of Horizon Europe, and closely linked to the achievement of EU policy objectives. A set of common objectives has been identified based on the coordinated impact assessment.
• Article 5: operational objectives and tasks – these provisions reflect the requirements and implementation criteria for European partnerships, including the need to ensure a systemic approach in achieving the objectives, access to results, monitoring to track progress towards policy objectives, the promotion of inclusi veness towards stakeholders and the involvement of small and medium-sized enterprises.
• Article 7: sets out a common process for selecting new members, thereby ensuring transparency and openness across the initiative, in line with the Horizon Europe Regulation.
• Article 11: provides a framework to ensure partners’ contributions throug hout the
initiative’s lifetime and that the costs are shared between the EU and the partners
other than the Union, which is a core condition of a partnership approach. This article stipulates that contributions and commitments must increase, in a qualitative and quantitative manner, in line with the Horizon Europe Regulation. It establishes a
systemic approach to contributions from industry partners across all Article 187 TFEU initiatives that is accountable, supports the openness of initiatives and is coherent, transparent, and fair, while ensuring the attractiveness of the initiative for new members.
Phasing out: provisions are closely linked to the achievement of specific objectives. Article 16(2)(y) requires the governing board to set out a realistic plan to continue the initiative outside the scope of an institutionalised partnership, by the end of 2022, in time to feed into the interim evaluation of Horizon Europe. This should ensure that dissemination activities continue after Union participation has ended and that links with industrial and other policies are made in order to transition the initiative from research and innovation towards deployment.
Governance provisions: harmonise the functioning of the different bodies across the joint undertakings. Each joint undertaking is supported by advisory groups in order to have scientific and expert advice, consult stakeholders, and involve member states (if they are not partners). However, there is flexibility for joint undertakings to use existing configurations for advisory function or establish one configuration that serves more than one of them.
Coherence and synergies (Articles 5, 16, 18, 24): The Horizon Europe Regulation stipulates that “Coordination and/or joint activities with other relevant research and innovation initiatives to secure optimum level of interconnections and ensure effective synergies”. In line with this, Part One sets out how joint undertakings are expected to collaborate with other partnerships, and interact with the broader ecosystem, notably on their tasks and those of their governing board, the role of the states’ representatives group and reporting via the annual activity report. Part two lists some priority European partnerships with which individual joint undertakings are expected to establish a formal and regular collaboration.