Policy Making for Sustainable Lifestyles & Green Economy in Europe to 2050

Transcription

1 Policy Making for Sustainable Lifestyles & Green Economy in Europe to 2050 Policy Round Table, Brussels, 6 October 2016 This project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no

2 Agenda 13:00 Welcome & Introductions 13:10 Overview of EU-InnovatE & Emerging Headlines 13:25 Policy Making to Support Citizen Involvement in Sustainability Innovation 13:40 Emerging Policy Recommendations 14:10 Prioritisation Exercise for Participants 14:20 Group Discussion of Recommendations 15:25 Summary & Close 2

3 Sustainable Lifestyles at EU Level Strategic policy objectives: 1. Promoting smart, sustainable and inclusive growth 2. Managing an ageing population while reducing current levels of energy, transport and resource use 3. Rethinking consumption / production systems as part of a transition to low-carbon economy by

4 EU Policy Research Questions i. Links between economic, ecological, human and technological systems and their influence on consumers' values and behaviour ii. iii. iv. Short and long-term obstacles and opportunities associated with the transition to European sustainable lifestyles and green economy New ways and new business models to manage natural resources while reducing consumption and improving quality of life Prospects for sustainable lifestyles and the green economy (i.e. trends up to 2050) 4

5 EU-InnovatE Consortium 5

6 Key Idea... Investigate the creative, innovative and entrepreneurial roles of users (and citizens) in developing novel sustainable products, services and systems = Sustainable Lifestyles 2.0). 6

7 WP 9 Management WP 8 Dissemination WP 6 Policy Design for SL 2.0 WP 5 Measuring Trends SL 2.0 WP 3 Company Sustainability Innovation Integrating Users WP 4 User Sustainability Innovation and Entrepreneurship WP 7 Synthesis SL 2.0 WP 2 Future of SL 2.0 WP 1 Past and Present of SL 2.0 7

8 The Multi-Level Perspective _stable _multi-layered _dynamic WP6 WP6 _stable _multi-layered _dynamic WP1 _stable _multi-layered _dynamic (Past and present) WP3 WP2 (future pathways) WP5 (quantified) Pioneering Practice Weak signals WP4 WP6

9 Emerging Headlines Sustainable entrepreneurship is an increasing phenomenon relevant to long-term EU objectives Younger generations increasingly see social and environmental problems as entrepreneurial opportunities New technologies & mindsets inspire them to integrate other users / citizens in developing sustainable solutions New legal forms and funding possibilities are emerging for sustainable entrepreneurs but not enough! Sustainable entrepreneurs have direct and indirect effects on their institutional environment 9

10 Emerging Headlines Users and entrepreneurs have multiple roles to play in supporting system transitions As consumers As producers As intermediaries As citizens As legitimators 10

11 Emerging Headlines Company-led sustainability innovation requires new multistakeholder approaches to succeed Sustainability innovation systems call for novel ideas or capabilities beyond the usual business partners The best recipe is to work with a limited number of selected stakeholders. Only large companies have enough resources to do this Most impactful sustainability-oriented innovation resulted from involving multiple company members in innovation with stakeholders 11

12 Emerging Headlines Agent-based modelling at household levels offers a new policy tool to map systemic impacts over time Deepen the understanding of interconnectedness and dependency of systems and domains Assess potential impacts of multiple innovations within current systems (GHG / resource use reductions, etc) Leverage metadata held by Member production and consumption systems Make direct links to consumer behavior / lifestyle choices and policy interventions 12

13 Policy Making to Support Citizen Involvement in Sustainability Innovation This project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no

14 Work Package 6: Objectives 1. Assess the current policies and instruments on enhancing sustainable lifestyles with a special emphasis on user integration, innovation and entrepreneurship (on communal, regional, national and EU level) 2. Suggest novel elements of a comprehensive EU policy to support company-driven sustainability innovation actively integrating users as well as user sustainability innovation, specifically user sustainability invention and user sustainability entrepreneurship. 3. Empirically test these novel elements by means of experiments as well as in a social-media enabled consumer conference. 14

15 Data Collection phases 1) Assessing the status quo Barrier and Enablers Systematic literature review 84 articles EU-Innovate General Meeting Jan academics Workshop 1, Copenhagen 25 innovators Interviews with policymakers 25 policy makers / shapers 2) Generating novel elements of EU policy EU-Innovate General Meeting Jan academics Workshop 2, Copenhagen 27 innovators, policy makers, academics Workshop 3, London 27 innovators 3) Testing and refining policy suggestions Sustainability Innovation Exchange 150 citizens Policy Roundtable (6th October) policymakers 15

16 Focus on independent end-user innovation 16

17 Findings from policy maker / shaper interviews 25 interviews with policy makers / shapers from across EU Lack of knowledge of phenomenon Lack of clarity around the terminology Silo thinking / working The concept of consumer-led innovation is not a concept I was familiar with When I hear co-creation I get 3-4 ideas of what it could be The traditional way of establishing and implementing policy is very much top-down ( ) in many fields of policy we do not yet use all the available tools to carry through reactive policy implementation 17

18 Findings from workshops: Lifecycle of a sustainability entrepreneur 18

19 Testing and refining: The Sustainability Innovation Exchange 150 people from 40 countries 6 x 60 minute topic discussions 2 x 30 minute plenaries 1,700 unique comments Website still live (register to view): Seeded the conversation with specific policy proposals Evaluated these policy proposals for impact and feasibility (though user polls) Invited users to propose variations to these policy initiatives or indeed to propose radically different initiatives, and for these to be equally debated 19

20 The Sustainability Innovation Exchange 20

21 Sustainability Innovation Exchange: Discussion visualisation - Education topic MEDIATOR: We need a more holistic view of the purpose of education. Our traditional pyramid models based on narrow specialisation may well be outdated. Simon Pickard, ABIS MEDIATOR: Narrow specialisation isn t just a way of organising, it also shapes how we think We need to shift towards system thinking and embracing complexity. Gemma Adams, Forum for Future POLICY MAKER: There has been a chance in policy towards testing, factbased learning and recall. These are the exact opposite of the skills from those needed to innovate! Rachel Collinson, Green Party UK Question posed by moderator: How can education programmes encourage a sense of empowered action when it comes to sustainability? MULTINATIONAL CORPORATION We are definitely falling short on tech literacy. We aim to teach 5 million young people in the UK by Eric Anderson, BT (telecom) EDUCATION NFP: Good practice includes action learning for learners and educators, socially critical thinking, social learning, understanding change and systems thinking. Ann Finlayson, Seed SOCIAL ENTREPRENEUR We do very little to support practitioner growth in this country. On average teachers get about 6 days of continuing practitioner development, most of this dicated by the needs of the school. Darren Abrahams, Feet First GUESTS Ann Finlayson, Executive Chair, Seed, a charity focused on sustainability and environmental education; Darren Abrahams, artist, entrepreneur and Director of the Starr Trust charity; Eric Anderson, Group Strategy at British Telecom, tasked with stakeholder engagement for responsible and sustainable business; Gemma Adams, Senior Sustainability Advisor, Forum for the Future; Rachel Collinson, Spokesperson for Business, Innovation and Skills, The Green Party, UK; Silvia Rossi, Lecturer in Humanitarian Logistics, Cranfield School of Management; Simon Pickard, Director of International Programmes, The Academy of Business in Society, Brussels. Contributors: 87 Comments: 311 Moderator: Dr Emma Macdonald, Cranfield School of Management 21

22 Emerging Sustainable Entrepreneurship & Citizen / User Innovation This project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no

23 Policy themes & 10 recommendations Beyond legitimacy #10: Analyse user & citizen roles in innovative policy making Modelling impacts #9: Enhance strategic policy making though agent based/scenario driven impact modelling Sustainability entrepreneurs of the future #1: Align sustainability & entrepreneurship in strategic frameworks for education & training Sustainability entrepreneurs of the future #2: Upscale sustainable entrepreneurship in Erasmus Entrepreneurial ecosystems #3: Create a sustainable entrepreneurship Knowledge & Innovation Community The power of stories #4: Harness the Europe Enterprise Network for better learning resources A class of their own #8: Recognise new legal enterprise form for sustainable ventures Giant green incubators #7: Align European VC funding with corporate venturing for sustainable enterprise Prioritised investment #5: Expand European funding for sustainability ventures The conviction of the crowd #6: Leverage crowdfunding for sustainability innovation 23

24 Theme: Sustainability entrepreneurs of the future The societal challenges identified in Horizon 2020, along with the EU s long term ambitions of transitioning to a low carbon, circular economy, supported by a Digital Single Market, offer enormous opportunities to business to take a lead role in sustainable, inclusive wealth creation New technology and digitalisation offer unparalleled opportunities for Europe s current and future entrepreneurs, an increasing number of which seek to align their commercial activities with a social or environmental purpose Education and training have a vital role to play especially at secondary and higher levels to inspire and equip them to create new ventures with triple bottom line priorities and sustainability goals at the heart of their enterprise The majority of current management and leadership education focuses on achieving single bottom line goals, often with no sustainability modules Current entrepreneurship training predominantly focuses on achieving single bottom line goals, which contributes little to achieving Europe s longer term sustainable development objectives Erasmus + is the most significant financial instrument available to pioneer new models of education and training for future entrepreneurs, around core principles of triple bottom line success in business. It also offers a unique framework within which young entrepreneurs can gain international experience both professional and academic and to gain handson mentoring, which is especially valuable for those embarking on an entrepreneurial path 24

25 Recommendation#1: Align sustainability & entrepreneurship in strategic frameworks for education & training What? Recognise and promote the synergies between societal challenges, education & training, and entrepreneurship in the Bologna Process and in the European Education & Training 2020 Strategy How? Make sustainable development and entrepreneurship issues a tangible, material part of ongoing Bologna Process negotiations (not mentioned in the last Bologna Process Implementation report 2015) for integration into the European Qualifications Framework Integrate a clear link between skills development (in particular entrepreneurship) and progress towards meeting Europe s sustainable development and societal challenges in the Education & Training 2020 Strategic Framework (COM 2015(408)) Provide a second round of funding to support the further development of the University Educators for Sustainable Development (LLL, Erasmus Academic Networks, ). 25

26 Recommendation #2: Upscale sustainable entrepreneurship in Erasmus What? Expand the boundaries and focus of Erasmus + and Erasmus for Young Entrepreneur (EFYE) Programmes to accelerate sustainable entrepreneurship How? Modify the current application and evaluation processes for the EYEP scheme, by incorporating specific sections dedicated to the intended social and environmental purpose / benefits of applicants intended commercial activity, and the sustainability of their business model. Include an option for host enterprises to identify themselves as having a social / environmental mission to stand out to sustainability entrepreneurs Refine marketing and promotion of the EFYE scheme to target existing networks of sustainability (social / green) entrepreneurs, both as potential hosts for successful applicants and as multipliers to find excellent candidates Retain / Increase budget for Erasmus Mundus Joint Masters Degree programmes, and incorporate more specific emphasis on sustainability and entrepreneurship as part of the annual Work Programmes / Calls Modify the evaluation criteria for EMJMD programmes, by incorporating the World Economic Forum s Essential Skills for the 21st Century 26

27 Theme: Entrepreneurial ecosystems Sustainable (and social) entrepreneurs tend to emerge through other channels and agencies: virtual networks, clusters and hubs, local communities, crowd-funding & crowdlending platforms, and more. They connect more with individuals than institutions Existing Knowledge Innovation Centres engage (mainly) large companies, universities and research institutes through a stand-alone legal entity. Under this umbrella, entrepreneurial activities, start-up ventures and education and training (at Masters & PhD levels) are well established outputs. Green business & new technologies are prominent but social issues and related commercial ventures are not. There is scope for a new model of KIC which connects these alternative agencies and communities to the worlds of academia and industry, in a new approach to collaborative knowledge creation and innovation for sustainability We also see huge importance in expanding the education impact of KICs to undergraduate level acknowledging that this will require a new level of engagement with Member States and Ministries of Education Case Studies Cozify, Emma Hostel and Otodojazd mentioned their supportive entrepreneurial eco-systems as a major supporting factor 27

28 Recommendation#3: Create a sustainable entrepreneurship Knowledge and Innovation Community What? Establish a new Knowledge and Innovation Community through the European Institute of Innovation & Technology, to be activated before the end of H2020 Expand the current KIC model to address undergraduate education How? Engage with the European Institute of Innovation & Technology to ensure that Sustainable Entrepreneurship is considered a priority theme for the next Call for KIC Proposals (2018?) Include criteria for application and evaluation which prioritise citizen and user / consumer engagement in the KIC. This seems to be absent in existing KICs, and the feedback from a new approach would provide valuable data and insight to strengthen the impact of such knowledge & innovation ecosystems. Criteria should also include requirements for education and training delivery at undergraduate (even secondary) level, aligned with Bologna and the EQF 28

29 Theme: The power of stories Our research indicates that narratives have great influence in convincing potential sustainable entrepreneurs to set up new ventures. Yet these narratives are hard to find in standard education and training programmes whether in the form of media or more traditional teaching cases and materials The Europe Enterprise Network offers an as-yet-untapped resource to generate these in creative and imaginative ways, with 17 sectors including Sustainable Construction, Agro Food, Intelligent Energy and 1,000s of company profiles in its database. A dedicated H2020 grant would incentivize a pan-european consortium to significantly expand the Network with thousands of new SME and micro enterprise cases, but also extract and translate key success factors (cultural, contextual, environmental, economic) into education and training materials tailored to specific regions and Member States it is not only about educating those in formal programs, but also in informal settings, showing inspiring examples, but also teach the tools to integrate sustainability into our work and life Sustainability Innovation Exchange 29

30 Recommendation#4: Harness the Enterprise Europe Network for better education and learning resources What? A dedicated Topic in the H Work Programme for Societal Challenge 6 to analyse sustainable / social entrepreneurs in the Enterprise Europe Network database, to augment the current database with new cases, and to translate findings into wide-ranging education and learning resources How? Make the case to DG Research Director for Open Innovation for inclusion in the next SC6 Work Programme. Either in the form of a Coordination Action, Research and Innovation Action, or Additional Action Stipulate pan-eu analysis of the EEN database to identify common and distinctive characteristics of successful sustainable entrepreneurs and startups Include explicit impact criteria in the Call for Proposals around the creation of open access / open source teaching materials and toolkits for any education provider seeking to promote sustainable or social entrepreneurship Include specific measurable targets for grant recipients to identify and integrate new sustainable enterprise cases into the existing EEN database 30

31 Theme: Prioritised investment It is a widely accepted reality that the current financial system is too focused on short term and purely financial returns Sustainable entrepreneurs often struggle to secure financing given the hybrid nature of their ventures and / or increased emphasis on societal impact vs. pure profitability. Public funding is a major enabling factor for entrepreneurs Investors need help to find easier and more stable ways of making their portfolios more environmentally sustainable The EIB and EIF are vital channels for alternative funding, filling an important gap in the conventional investment market both through venture capital, green loads and social loans Case Studies Cozify and Greenrider funding from Tekes (the Finnish funding agency for technology and innovation); Polarstern EXIST grant from the German Ministry for Economic Affairs and Energy ntbank.com 31

32 Recommendation#5: Expand European financing for sustainability ventures What? Expand the supply of finance to ventures delivering environmental and /or social benefits How? Increase scale of investments under EIB Microfinance scheme with prioritisation on social / environmental benefits and impacts of sustainable entrepreneurship Better integrate sustainable entrepreneurship into the funding criteria framing JEREMIE, ESIF and InnovFIN instruments through to 2020 Amplify mechanisms to prioritise funding sustainability ventures across other products (e.g. evaluation criteria) Explore models to align EIB financial instruments with corporate venturing (potentially as part of the revision of the Action Plan on Building a Capital Markets Union [COM(2015) 468] see also Recommendation #7 32

33 Theme: The conviction of the crowd Crowdfunding has become a popular alternative source of finance for a variety of for- and non-profit ventures and projects. By enabling small incremental investments, typically through intermediary platforms like Indiegogo, crowdfunding increasingly allows non-professional investors to directly support their preferred project/venture It has been suggested that this form of finance could significantly enable more sustainable innovation, since crowdfunders are driven by a different investment logic that focuses on the projects core values and legitimacy Many of our respondents welcomed crowdfunding as method for riskier sustainable ventures to gain early seed investment However, there was caution over protection for investors and the blind nature of crowd investment, and agreement that additional sources of finance are needed to achieve scale They can give kickstart funding and give early stage businesses enough time to prove the concept and then go for private equity Sustainability Innovation Exchange 33

34 Recommendation#6: Leverage crowdfunding for sustainability innovation What? Expand the current policy knowledge base on crowdfunding to address unique characteristics linked to sustainability innovation and sustainable entrepreneurship How? Recommend that the European Crowdfunding Stakeholder Forum report on Crowdfunding for Sustainability Innovation (role of sustainability innovation currently absent from Forum s forward objectives): ensuring the inclusion of perspectives from the European Crowdfunding Network Report on best practice on specific sustainability platforms (e.g. Ecocrowd, funded by German Environmental Foundation) and government co-financing Understand whether EU regulatory framework is required to protect EU investors (e.g. USA regulation model) Include citizen/collaborative financing models (crowd-funding, peer-to-peer) for sustainability innovation as a H2020 research theme in the Work Programme under Societal Challenge 6 34

35 Theme: Giant green incubators The venture capital ecosystem in Europe still experiences high fragmentation across national borders, as well as systematic issues like, inter alia, the risk of double taxation. Hence, there is not yet a real European VC market, but still an aggregation of several markets There are several factors contributing to market imperfections and failures in the context of SME financing. One of them is the disproportionality between the cost of assessing a relatively small company s need for finance and the potential financial return (problem of high fixed cost) Venture capitalists play a crucial role in removing information asymmetries Multinational corporations (often via their own venture capital arms ) have started to enter this space bridging VCs and access to funding In light of the enormous cash piles many multinationals HQed in Europe are sitting on, a closer alignment with European institutional venture funding could catalyse a new wave of green and social investing across the continent Corporate venture financing can provide legitimacy to a start-up, it can provide access to networks and resources within the business and, most importantly, it can provide options for scaling through existing markets (Sustainability Innovation Exchange) 35

36 Recommendation#7: Align European VC financing with corporate venturing for sustainable enterprise What? Explore closer alignment / harmonization of current EIB and European Investment Fund (EIF) venture capital funding instruments with corporate venturing to promote new sustainable enterprise development, including enterprises with social purpose How? Design of a public Venture Capital investment scheme based on the implementation of a new co-financing scheme pioneered by EIB which creates framework conditions and favourable environment for companies to co-invest in new sustainable enterprise development Explore options to integrate this topic into the revision of the Action Plan on Building a Capital Markets Union [COM(2015) 468 final] 36

37 Theme: A class of their own Many sustainable entrepreneurs set up organisations with hybrid forms which reflect the hybrid motives of their founders Creating a single consistent legal form for these entities across Europe, with comparable criteria and reporting, would make it easier for corporate venture units and other potential investors to identify and assess these ventures One significant example is Benefit Corporations which exists as title but not legal form in many EU nation states. Other examples of alternative legal form include: charitable limited liability companies community enterprises cooperatives and corporations owned by associations or foundations with a defined social purpose Entrepreneurs want to command higher valuations, achieve greater impact, and build companies to last at scale with integrity. The B Corp legal and performance standards help ensure that B Corps and their investors meet all three of these objectives (B-Corp website) 37

38 Recommendation#8: Recognise new legal enterprise form for sustainable ventures What? Expand the legal definitions of companies to recognise the emerging phenomenon of sustainable enterprises and hybrid forms How? Formalise For Benefit Corporations B Corps as legal form at EU level Could be achieved through revision/modification of the existing Societas Europaea legal framework 38

39 Theme: Modelling impacts In order to be able to prioritise the types of innovations which have the greatest positive sustainable impact, we need modelling approaches which take into the account the interconnectedness of different domains within an overall system (e.g. food and energy), whilst also being able to simulate adoption behaviours of individual households in different geographical and policy contexts An agent based model being developed by Cranfield can evaluate the potential impacts of a range of innovation types under user-defined scenarios Evaluates the aggregate impact of the adoption of sustainable innovations at individual household (agent) level within a defined scenario (current day EU, nation, region, city; or future scenario) Uses impact metrics of carbon emission and kilograms consumption Takes into account feedback in the system (accounts for unintended consequences) Identifies the potential of an innovation type to reduce consumption in the simulated societies to 8,000kgs per person pa However, the innovation types prioritised need to remain flexible enough to allow for creative solutions to achieving the impact targets The connections between food, energy, housing and mobility activities are non-linear, which means, that if adoption triples, the outcome is very unlikely to be three-times the magnitude. It is also possible that too much adoption is not a good thing. An example from Spain of subsidies for solar panel innovation show that there is now a glut of this technology generating unusable electricity and incurring a cost for the policy. So the model is a useful tool to support decisions on the prioritization of policies, favouring those, everything else being equal, which lead to more sustainable future (Sustainability Innovation Exchange) 39

40 Recommendation#9: Enhance strategic policy making through household based / scenario driven impact modelling What? Use household (agent) based / scenario driven modelling to enrich policy thinking and decision making How? Use household ( agent ) based modelling to assess potential impacts of range of innovations types under required scenarios Leverage governmental databases to provide meta-inputs for scenarios and impact modelling Build deeper understanding in policy agencies about interdependency of systems and domains (e.g., food, energy, mobility, living) Expand and enhance the toolkits available to policy makers through training workshops and demonstrations Engage the Joint Research Centre to explore the adaptation of the Cranfield model for internal EU Commission purposes 40

41 Theme: Beyond legitimacy When in comes to sustainability, diverse skills, knowledge and viewpoints are needed to come up with creative solutions Our research suggests a need to: provide platforms which give access to wider participation, whether to provide input to proposed policies or to remove financial barriers to participation in politics join up government departments to avoid duplication and to maximise learning use the snowball approach to reach a broader range of unusual stakeholders share examples across government domains / departments and nations of open policy making in practice The Sustainability Innovation Exchange was designed as a real world open policy making consultation exercise, on which we have grounded these 10 policy recommendations Toolkits for citizens in how they can turn their views into policy could help There are advantages we see of encouraging more open dialogue to shape our thinking around an issue. We tend to get better ideas and stronger inputs as a result of exploring broader perspectives on an issue other than our own (Sustainability Innovation Exchange) 41

42 Recommendation#10: Analyse user & citizen roles in innovative policy making What? Support new research into the emerging phenomenon and structures that surround user and citizen innovation for sustainability, and the implications for open policy-making at EU, national and regional levels How? Incorporate a related Research & Innovation or Coordination Action theme in next H2020 SC6 Work Programme Prioritize analysis of the factors that support and empower new clusters of users and citizens to engage in policy-making for sustainable futures Require the creation of new platforms to give access to wider participation, whether to provide input to proposed policies or to remove financial barriers to participation in politics, and to share examples across government domains / departments and nations of open policy making in practice

43 Prioritizing the Recommendations This project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no

44 Policy prioritisation exercise Vote for your top 3 recommendations thinking about both feasibility and potential impact (or both) please add your name to your post-its Extra red sticker for the idea most relevant to you in your day job We will take the top 3 or 4 ideas to discuss in more depth over the next hour 44

45 Round Table Review of Recommendations This project has received funding from the European Union's Seventh Framework Programme for research, technological development and demonstration under grant agreement no