Transition governance for the bioeconomy: comparing Finland and the Netherlands

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1 Transition governance for the bioeconomy: comparing Finland and the Netherlands Rick Bosman & Jan Rotmans DRIFT / Erasmus University Rotterdam bosman@drift.eur.nl SusValueWaste seminar 12th of January 2016

2 DRIFT and Rick Bosman DRIFT: Dutch Research Institute for Transitions, Erasmus University Rotterdam Combining theory and practice: research, consultancy, training, education Rick: MSc Renewable Energy Management, University of Freiburg PhD-researcher and advisor Projects: Dutch parliament, Ministry of Economic Affairs, Ministry of Foreign Affairs, Finnish government. Focus: energy transition, both in the Netherlands and abroad Dutch Research Institute For Transitions

3 Transition to Bioeconomy Switch from fossil fuels to green resources Switch from fossil carbon to biomass Switch from bulk to specialty products

4 Bioeconomy = Revolution Technological New infrastructure, shift in agriculture, new harbour logistics Societal Adjusted law and regulation, different stakeholders Mental Getting rid of our fossil addiction

5 Interwoven Sub-transitions Agriculture must be untwined from fossil sector Chemicals must be untwined from fossil sector Chemicals must be converted in food-health runs into vested interests of petro-chemical, agricultural and forestry sector demands for radical innovation that will take decades

6 Biobased economy THE DUTCH APPROACH

7 Netherlands well positioned Big harbours Chemical industry Agriculture & agro-industry Transport and logistics Energy production Knowledge & innovation

8 The Dutch Transition Approach Vision & ambition Network approach Strategy & action Facilitating government

9 Vision & Ambition In 2050 Netherlands is leading in bioeconomy In % green resources In /3 technical students work in bioeconomy

10 Network Approach Bring diverse parties together Vested & emerging interests Strive for excellence and ambition Co-creation with partners

11 BioBased Economy Network Strategy and Policy High level business coordination group VNO/MKB, business, umbrella organisations Reference group Businesses, government, umbrella organisations Biobased Economy Programme Board government Scientific and technological committee Science, government Business case Platform BioRenewables Businesses, NL Enterprise Agency Cluster Agro, Paper and Chemistry Business Dutch Biorefinery Cluster Business PPPs: -BeBasic -Catch Bio -BPM Business, science, government Committee Sustainability issues Biomass Businesses, science, sovernment Societal dialogue / IMI NGOs, businesses, government Transition house - Interactive website: biobasedeconomy.nl - LinkedIn-group (3821 members) - ROMs - BB Accelerator Business, NL Enterprise Agency, government

12 Strategy & Action High in biomass value pyramid Top-down and bottom-up steering Stimulating regional clusters

13 Biomass value pyramid

14 Transition Pathways Biobased materials Bioenergy & biochemicals Integrated biorefining Plant cultivation & biomass production Recycling: water, nutrients, soil

15 Biobased Connections Amsterdam - Energy - Chemical Biodelta South- Wing - Chemical - Energy - Biotech - Greenport - Rotterdam Port Biobased Delta - Agro - Chemical (aromatics) Northern cluster - Agro - Paper - Chemical - Energy - Eems Port BBE Innovation Cluster East - Energy - Biocoatings - Fibres and yams - Paper Biobased Limburg - Chemical - Medical - Greenport

16 Barriers 200 barriers have been proposed by private sector 23 operational barriers have been resolved 23 fundamental barriers have been discussed 9 conflicting barriers can not be resolved

17 Barriers Structural barriers Residual currents considered as waste in law Fundamental barriers No level playing field Import taxes on bio-ethanol, not on nafta No certification Conflicting barriers Risks of new chemical compounds and mixtures Green gas transport versus electric transport Bio-products and food security

18 Bio-economic system is full of flaws and still fossil-oriented

19 2.jpg

20 Green Chemistry Campus Campus created by petrochemical company SABIC SABIC opens their laboratories for entrepreneurs Results in biobased radical innovations Biopolymers, building materials, natural colours

21 LESSONS LEARNED

22 It s the process stupid! Bottleneck is NOT technology BUT the process 99% of the money goes to biotechnology Requires smart and subtle manoeuvring

23 Engaging Consumers Consumers will play a key role in the transition Approaching communities Using social media Participation in coalitions

24 Visionary & Practical Realising in practice what is already possible Factory for production of bio-ethylene from bio-ethanol Focus on excellence at high levels in value pyramid High-quality products; knowledge-intensive innovation Searching, learning and experimenting Innovation spaces with entrepreneurs & frontrunners

25 Recipe for failure Cannot be realized only with players with vested interests in the fossil regime (Topsectoren policy of Dutch government) A turkey doesn t put itself on the christmas menu

26 FINNISH BIOECONOMY GOVERNANCE

27 Finland well positioned Highly industrialized and well educated Strong entrepreneurial spirit Ample supply of biomass and strong related industries Bioeconomy part of Finnish genes Already 16% of GDP from bioeconomy

28 Distributed nature of bioeconomy Distributed nature of Water and biomass availability Decentralized energy IT-technology High quality specialty products

29 Finnish bioeconomy strategy Competitive environment for the bioeconomy New business from the bioeconomy Strong bioeconomy competence base Accessibility and sustainability of biomasses Leading to: Grow bioeconomy from 60 to 100 billion in 2025 Create 100,000 new jobs

30 Finnish bioeconomy strategy + Interdepartmental cooperation + Systemic approach + Clear and appealing vision + Focus on opportunities - Unclear problem - Ownership - Lacks assessment of potential resistance and barriers - No strategy

31 Potential Barriers Lack of sense of urgency Lack of ownership Silo structure Implementation gap Finnish modesty Incremental vs radical

32 Levels of transition to bioeconomy Macro-level - abundance of unconvential fossils + geo-political conflicts + climate change - financial-economic crisis Meso-level - lack of ownership + innovation strategy & expertise - silo structure - lack of urgency Micro-level + pilots en projects + technological expertise + bioeconomy in DNA of economy - implementation gap

33 Phase of transition to bioeconomy Transition to bioeconomy Stabilisation current situation Acceleration Take-off Predevelopment time 2050

34 Dutch and Finnish transitions Dutch Biobased Economy Finnish Bioeconomy Transition from fossil-based to biobased from bulk to specialty Drivers chemistry sector/government bioeconomy & innovation in genes Urgency rather high average Phase pre-development before take-off Regime economic top-sectors powerful silo structure Niches systematic experimentation many unconnected niches Vision industry led vision for 2050 government led vision for 2025 Scale regional approach national approach Governance transition governance traditional governance Approach conceptual, network based practical, sector based Focus radical innovation incremental innovation Government facilitator director

35 Suggestions Engage frontrunners in strategy development Stimulate linking and coherence of experiments Cooperation SME s and elephants Regional collaboration clusters Incremental ánd radical innovation Co-create transition pathways with stakeholders

36 Potential transition pathways Biofibers Textile Biopolymers, plastics, -packaging Dietary supplements Bio-ICT Bioinformatics 3d-printing Bio-built environment Wooden buildings Construction materials Biopharmaceuticals

37 Insights for SusValueWaste Innovation spurred by frontrunners Innovation develops in between sectors and silo s Sensitivity for resistances and barriers Bioeconomy new for Netherlands, while already strong in Finland (and Norway) History in bioeconomy presents both opportunities and potential lock-ins