China Europe Water Platform

　　Potential Financing Mechanisms in the EU

　　Lars Skov Andersen

1 Introduction

　　The China Europe Water Platform is a new modality for the cooperation between China and Europe. It is not supported by a specific EU or Chinese budget, but has to be driven by mutual interest and mutual financing of cooperating within specific areas or concrete projects. Both sides will, however, have access to various financing mechanisms within China and within the EU. It is the role and responsibility of the Chinese and EU Secretariats to assist interested partners identifying relevant financing mechanisms and to support programs or projects that both sides agree to be beneficial and promoting China Europe cooperation. This note presents a range of EU financing mechanisms, while the corresponding Chinese financing mechanism will be dealt with in a parallel note.

　　The EU financing mechanisms may be supplemented by national financing mechanisms in EU Member States and other European countries, which decide to join the CEWP as co-lead countries for specific sub-sectors or themes.

　　The financing mechanism available to the partners of the China Europe Water Platform within the EU may be divided into three groups:

　　1       EU Research Programmes

　　2       EU China Specific Programmes

　　3       EU Programs linking activities in EU and China

　　The note contains an introduction to these programmes including links to relevant web-sites, where additional and detailed information for specific areas may be obtained.

　　The note is prepared for the EU China Policy Dialogues Support Facility, which is a prominent example of an EU China specific program.

2 Research Programmes

　　The EU research programmes are targeted to support EU goals, objectives and programmes, mainly within EU, but also for EUs external actions. Calls for applications for funding of research are issued regularly by the EU Commission within specific sectors or topics, which are considered important to promote research, development and innovation within the EU as well as the efficiency of EU programs and its development cooperation.

　　The programs have until now been known as Research Framework Programs, which have spanned 4-5 year periods and currently are in their 7th phase (FP7) that will close for applications in 2013, but projects may continue to their scheduled completion. In 2014 the framework programs will be replaced by a programme called Horizon 2020, but essentially having the same structure and operation mode as the Framework Programs.

　　Funding of the research programs has been substantial. The Research Framework Programmes started in 1984 and have seen an ever increasing budget from €0.6 billion in 1984 to a budget of €11 billion for 2013.The budget for FP7 was 32 billion Euro, while the targeted budget for Horizon 2020 currently being negotiated is Euro 80 billion.

2.1  Research Framework Programme 7

　　FP7 is the short name for the Seventh Framework Programme for Research and Technological Development. This is the EU's main instrument for funding research in Europe and it will run from 2007-2013. FP7 is designed to respond to Europe's employment needs, competitiveness and quality of life.

　　The key entries to the FP7 are http://ec.europa.eu/research/fp7/index_en.cfm  and http://eeas.europa.eu/delegations/china/documents/eu_china/science_tech_environment/fp7-inbrief_en.pdf.

　　For further information contact: Delegation-China-Scitech@eeas.europa.eu 

　　All areas of FP7 are open to the participation of Chinese researchers and/or research organisations on the basis of mutual benefit and reciprocity. Specific areas are also open to the private sector, especially to Small and Medium Scale Enterprises (SMEs).

　　Application must in general be submitted by consortia, and most must have at representatives from 3 Member States/Associated States, with Chinese participation being additional requirement.

　　The FP7 is split into 7 thematic areas each with several topics, of which 3 thematic areas are of particular interest to the CEWP:

　　•            COOPERATION within and beyond the EU:

　　-            Environment, including water and climate change http://ec.europa.eu/research/fp7/index_en.cfm?pg=env 

　　•            IDEAS focusing on applied research, including:

　　-            Joint research between the public and private sectors, with special attention to small and medium scale enterprises (SMEs)

　　•            CAPACITIES, including the innovative capacities of SMEs to benefit from research:

　　-            Research for SMEs: to support small groups of innovative SMEs in solving common or complementary technological problems.

　　-            Research for SME associations: to support SME associations and SME groupings in developing solutions to problems common to large numbers of SMEs in specific sectors.

　　The strong support to SMEs should be seen in the context that these make up a large part of Europe's economy and industry. In the EU 23 million SMEs account for 99% of all businesses and contribute up to 80% of employment in some industrial sectors, a situation that is very different from the dominance of state owned enterprises in China. It is these SMEs, which provide many of the EU technologies that may be applicable in China and also may have the highest benefit of access to the Chinese market facilitated by the CEWP.

2.1.1 Previous FP7 water sector projects involving China

　　The FPs include 2 projects of relevance to the water sector in China that may serve to illustrate the type of research and the available support:

　　1       SAFIR. Safe Reuse of Irrigation Water

　　( http://www.safir4eu.org/)

　　SAFIR was implemented under FP4 and closed in September 2009. Its addressed water reuse “To protect and sustain Europe's high quality water for drinking water purposes, we may need to expand the use of treated waste-water in Europe's agriculture.” It was implemented by 17 partners including research institutes and the private sector, coordinated by the Danish University of Aarhus and including China Agricultural University (CAU) and China Academy of Agricultural Science (CAAS).

　　2       LEDDRA. Land and Ecosystem Degradation and Desertification: Assessing the Fit of Responses (http://leddra.aegean.gr/).

　　LEDDRA is under implementation as part of FP7. One objective is to compile, improve and enrich existing and develop new integrated methodologies for assessing the impacts and fit of various types of responses to Land and Ecosystem Degradation and Desertification, as well as the socio-ecological vulnerability of affected regions. It comprises 11 research institutes, is led by the University of Aegean and includes the Changjiang Scientific Research Institute (CSRI). The Chinese participation arose from the support of the EU China River Basin Programme to the Changjiang Pearl River Watershed Rehabilitation Project.

2.1.2 COOPERATION Area

　　The COOPERATION area (http://ec.europa.eu/research/participants/portal/page/cooperation) includes environment, which had four topics:

　　•            Climate change, pollution and risks

　　•            Sustainable Management of Resources

　　•            Environmental Technologies

　　•            Earth observation and assessment tools

　　The objective is to contribute to sustainable management of the environment and its resources through advancing our knowledge of the interactions between the climate, biosphere, ecosystems and human activities, and developing new technologies, tools and services, in order to address in an integrated way global environmental issues.

　　The emphasis is on prediction of climate, ecological, earth and ocean systems changes, tools and on technologies for 1) monitoring, prevention, mitigation of and adaptation to environmental pressures and risks and 2) the sustainability of the natural and man-made environment.

　　Most of these topics have been completed, so for 2013 only the following project type is open for application:

　　•            SME-targeted Collaborative Project (http://ec.europa.eu/research/participants/portal/page/cooperation?callIdentifier=FP7-ENV-2013-WATER-INNO-DEMO)

　　Application requires participation of at least 3 entities established in MS and from at least 2 MS The budget maximum per project it €6 million of which at least 30% must benefit the participating SMEs. The deadline for application is 04 April 2013.

2.1.3 PEOPLE Area

　　The People area (http://ec.europa.eu/research/participants/portal/page/people) also called Marie Curie  actions, has three topics open for application

Link	Title	Deadline
FP7-PEOPLE-2013-ITN	Marie Curie Initial Training Networks (ITN)	2012-11-22
FP7-PEOPLE-2013-COFUND	Marie Curie co-funding of regional, national and international programmes (COFUND)	2012-12-05
FP7-PEOPLE-2013-IRSES	Marie Curie International Research Staff Exchange Scheme (IRSES)	2013-01-13

　　The PEOPLE programme explicitly opens for participation of third countries, that would include China.

　　•            Initial Training Networks

　　This action addresses joint research training programmes in the form of either Multi-partner networks, European Industrial Doctorates or Innovative Doctoral Programmes. Applications must have at least 3 participants from 3 different member states, and is open to additional participants from third countries, that include China. The deadline for application is 22 November 2012.

　　•            Co-funding of regional, national and international programmes (COFUND)

　　COFUND is open to a single organisation responsible for one or more fellowship programmes and established in a MS or associated country.

　　•            International Research Staff Exchange Scheme (IRSES)

　　This action addresses partnership composed of at least two independent research organisations established in at least two different Member States, AND one or more research organisations either located in countries with which the EU has or is in the process of negotiating an Science & Technology Agreement.

2.1.4 CAPACITIES Area

　　The Capacities area (http://ec.europa.eu/research/participants/portal/page/capacities) has one relevant topic open for application.

Links	Title	Deadline
FP7-SME-2013	Research for the benefit of SMEs	2012-11-15

　　The SME topic includes 3 relevant project types that are open to all research fields:

　　1       Research for SMEs - Research for the benefit of specific groups (in particular SMEs)

　　2       Research for SME Associations

　　3       Demonstration Activity that must be Collaborative projects

　　Applicants must include at least 3 entities from at least 2 MS and may in addition include third countries.

2.2      Horizon 2020

　　Horizon 2020 will come into force 01 January 2014. It will combine all research and innovation funding currently provided through the Framework Programme 7, the innovation related activities of the Competitiveness and Innovation Framework Programme and the European Institute of Innovation and Technology.

　　The key link to Horizon 2020 is http://ec.europa.eu/research/horizon2020/index_en.cfm?pg=h2020.

　　The proposed support for research and innovation under Horizon 2020 will:

　　•            Strengthen the EU’s position in science by boosting to top-level research in Europe, including support to the European Research Council.

　　•            Strengthen industrial leadership in innovation with major investment in key technologies, and greater access to capital and support for SMEs.

　　•            Address major concerns shared by all Europeans such as climate change, developing sustainable transport and mobility, making renewable energy more affordable, ensuring food safety and security, and coping with the challenge of an ageing population.

Science

　　In science Horizon 2020 will:

　　•            fund collaborative research to open up new and promising fields of research and innovation through support for Future and Emerging Technologies

　　•            provide researchers with excellent training and career development opportunities through continuation of the Marie Curie Actions

　　•            ensure Europe has world-class research infrastructure (including e-infrastructures) accessible to all researchers in Europe and beyond.

Industry

　　In industry Horizon 2020 will:

　　•            build leadership in enabling and industrial technologies, with dedicated support for advanced manufacturing and processing ……….,

　　•            facilitate access to risk finance

　　•            provide EU wide support for innovation in SMEs.

Concerns

　　Under public concerns Horizon 2020 will:

　　•            bring together resources and knowledge across different fields, technologies and disciplines

　　•            cover activities from research to market with a new focus on innovation-related activities, such as piloting, demonstration, test-beds, and support for public procurement and market uptake.

　　Of relevance to CEWP it will focus on:

　　•            Food security including sustainable agriculture

　　•            Secure, clean and efficient energy

　　•            Climate action and efficient use of resources and raw materials.

3         EU China Programmes

　　The traditional development cooperation between EU and China is taken forward in the 2013-2018 work programme, of which the following actions are of particular interest to the CEWP:

　　•            EU China Policy Dialogues Support Facility Phase II

　　http://www.eu-chinapdsf.org/english/home.asp 

　　•            EU Small and Medium Enterprise Centre

　　http://www.eusmecentre.org.cn/ 

　　•            EU China Trade Project Phase II

　　http://www.euctp.org/ 

　　•            EU China Environmental Governance Programme

　　http://www.ecegp.com/index_en.asp 

3.1      EU China Policy Dialogues Support Facility Phase II

　　The EU China Policy Dialogue Support Facility (PDSF) co-funded by the European Union and China to facilitate and support current and future implementation of Policy Dialogues between the EU and China on a broad range of key sectors and issues, with the overall aim to strengthen strategic relations between the EU and China.

　　The PDSF provides a unique and flexible mechanism to support a wide variety of activities in the form  of Sectoral Dialogues between the European Commission’s Directorates-General (DG) or the European External Action Service (EEAS) and Chinese Ministries or State Agencies. PDSF will run for 4 years from 2012 to 2015, inclusive.

　　Applications for support can be submitted only by partnerships of the above mentioned agencies. Applications may concern both small one-off activities and large program type activities running for several years. Smaller activities often prove more effective than conventional projects, because they they can be mobilized quickly and respond to an immediate demand. Phase I of the PDSF, for instance implemented 26 activities with 62 separate events over five years, involving 19 Chinese Ministries & State Agencies and 12 DGs with a total budget of almost € 6.6 million. More than 200 senior policy-makers and experts were involved in these activities. The budget Phase II of the PDSF is around €10 million with a cap of €500,000 on individual projects.

　　Applications for support from the PDSF can be submitted quarterly during the year with specific deadlines published on the PDSF website: http://www.eu-chinapdsf.org

　　The start up of the China Europe Water Platform is the first project to be supported under Phase II of the PDSF.

Contact:

　　EU China Policy Dialogues Support Facility, Room 704, Building B2, Phoenix City, No.5 Shuguang Xili, Chaoyang District, Beijing 100028

　　Telephone:   +86 10-8440 5368

　　Mail:             office@eu-chinapdsf.org 

3.2      EU Small and Medium Enterprise Centre

　　The EU SME Centre facilitates market access in China for European Small and Medium-sized Enterprises.  The Centre provides free of charge, practical information, advice and business tools to better equip SMEs to develop their business and tackle challenges faced in the Chinese market

　　The support covers areas such as

　　•            Business Development – advice on market information, business development and marketing

　　•            Legal – legal information, ‘ask the expert’ initial consultations and practical manuals

　　•            Standards – standards and conformity requirements when exporting to China

　　•            HR and Training – industry and horizontal training programme, advice on HR issues

　　•            Access to a service providers directory and information databases

　　•            Free, temporary office space in the EU SME Centre to explore local business opportunities

　　The SME Centre has carried out a market survey on green technologies concluding: “The main market opportunities for European SMEs will be found in areas where large State Owned Enterprises (SOEs) or multinationals have not yet invested and where they can leverage their know-how and technologies”. In this context, the survey report highlights the energy efficiency services and water and waste treatment sub-sectors as presenting particular opportunities for European SMEs.

Contact:

　　EU SME Centre, Room 910, Sunflower Tower, No.37 Maizidian West Street, Chaoyang District, Beijing 100125

　　Telephone:   +86 10 85275300

　　Mail:             enquiries@eusmecentre.org.cn 

3.3      EU China Trade Project Phase II

　　The EU China Trade Project (EUCTP) mainly provides technical assistance and practical support to reduce trade barriers, promote business development and set standards. EUCTP is not of direct relevance to CEWP, but EU and Chinese business partners may obtain advice within 5 work areas:

　　•            Services

　　Improving the regulatory framework for services (consultancies), raising the capacity of service sector regulators and increasing fair competition in the services sector.

　　•            Quality Infrastructure and Technical Barriers to Trade

　　Promoting Harmonisation with international standards, conformity assessment, and enforcement to facilitate trade

　　•            Agriculture and Food Safety

　　Supporting modernisation of Agriculture and Agro-food sector, improving food safety and quality, encouraging better enforcement of food safety rules in line with international standards

　　•            Customs

　　Supporting modernization of customs to facilitate trade and encouraging alignment with international standards

　　•            Cross-cutting issues

　　Encouraging more engagement and efficient relations in international bodies, supporting a more transparent legal environment, and working towards transparency, good governance and sustainable development

　　EUCTP does not provide specific project support, but is always available for consultation.

Contact:

　　EU China Trade Project, Room 2080, Beijing Sunflower Tower, No. 37 Maizidian St., Chaoyang District, Beijing 100125

　　Telephone:   +86 10 85276380

　　Mail:             amysaltzman@euctp.org 

3.4      EU China Environmental Governance Programme

　　The EU China Environmental Governance Programme is implemented under the leadership of a "Project Task Force" (PTF) in the Policy Research Center for Environment and Economy (PRCEE) of the Ministry of the Environment with support from International Technical Assistance Team. It runs from 2010 to 2015.

　　The program addresses:

　　•            public access to environmental information

　　•            public participation in environmental planning and decision making

　　•            access to justice in environmental matters

　　•            corporate environmental responsibility.

　　The programme supports demonstration activities within the above 4 fields and is open for application at regular intervals. Applications must come from an EU and Chinese partner. The EGP may be relevant to policy development in public consultation and participation in environmental planning and management.

　　The EU-China Environmental Governance Programme (EGP)’s culture is soundly grounded in approaches and methodologies to produce “Made in China” outcomes with specific relevance and applicability to China’s evolving economic and environmental development circumstance.

4         EU Programs linking activities in EU and China

4.1      EU China Partnership on Urbanisation

　　The EU China Partnership on Urbanisation was agreed in May 2010. The partnership will address urban development in a broad sense. Water and water management are a key challenge for urbanisation in China that may be developed via the CEWP.

　　Topics of relevance to the water sector include:

　　•            Policies and strategies on development of urbanisation

　　•            Spatial distribution of urbanisation

　　•            Urban public services

　　•            Urban infrastructure investment and financing mechanisms

　　•            Urban environmental and ecological protection and restoration

　　More EU Programs will be available in the final version of this memo to be posted at the web-sites of:

　　•            CEWP (www.cewp.org)

　　•            PDSF (http://www.eu-chinapdsf.org/)