Macarena González Nappa

Dirección de Planificación/Oficina de Planeamiento y Presupuesto

Uruguay

Santiago 7 y 8 octubre de 2015

Session 2

State of the bioeconomy in LAC : a public policy

perspective.

Uruguays transition to a sustainable bio-based

economy

Significant contribution of bioeconomy-related sectors to GDP over the last years

Although contribution remained stable over the period

Bioeconomy in Uruguay (2005-2012)

Source: BCU/INE

Forest/wood sector’s contribution to total bio-based manufacturing products has grown significantly over the last years

Source: BCU/INE

NOTE: work in progress. Methodology from “La Bioeconomia Argentina: alcances, situacion actual y oportunidades para el desarrollo sustentable “ (2015), Trigo, Regúnaga, Costa, Wierny, Coremberg

Bioeconomy in Uruguay today

Sectors “Food” and “Forestry/Wood”

have a significant contribution to Uruguays bioeconomy

Uruguay today produces food for 28 million

people, with a population of 3.3 million.

NOTE: work in progress. Methodology from “La Bioeconomia Argentina: alcances, situacion actual y oportunidades para el desarrollo sustentable “ (2015), Trigo, Regúnaga, Costa, Wierny, Coremberg

Forest/wood sector, one of Uruguays strategic sectors, with significant contribution to total bio-based manufacturing and worldwide leadership (WW Exp. #12; WW Prod. #17)

Chemical pulp exports 2013 Chemical pulp production 2013

Biobased Manufacturing: Forest-Wood

Ranking Country Tons

1 United States of America 40940040

2 Brazil 14507000

3 Canada 9119000

4 Japan 8083000

5 Sweden 7729820

6 Finland 7073000

7 Indonesia 6328000

8 China, mainland 6240000

9 Russian Federation 5300000

10 Chile 4793000

11 Portugal 2434100

12 France 2181108

13 Spain 1868500

14 Germany 1596000

15 India 1406800

16 Austria 1191110

17 Uruguay 1076000

18 South Africa 952819

19 Thailand 948000

20 Australia 937000

Ranking Country Tons

1 Brazil 9429545

2 Canada 7008000

3 United States of America 6757600

4 Chile 4556173

5 Indonesia 3717527

6 Finland 2697622

7 Sweden 2676353

8 Russian Federation 2008280

9 Portugal 1167803

10 Spain 1137691

11 Germany 1128000

12 Uruguay 1033000

13 Netherlands 853945

14 Belgium 815130

15 New Zealand 482624

16 Japan 424902

17 France 369163

18 Austria 306324

19 Norway 218238

20 Slovakia 180460

Source: FAO Source: FAO

Policies for Bioeconomy Development

S&T

Biotechnology

Climate Change

Bioenergy

Uruguays transition to a

Green Economy

Policies for Bioeconomy Development

• Biotechnology

2006 Cluster “Ciencias de la Vida” (PACPYMES)

2008-2009 Strategic Sector – MIEM. Productive Cabinet

2010 Bioech Sector Council PENCTI: biotech as a key area

2010-2013 Design and implementation of Biotech Strategic Plan

2014 -2015 1st Biotech Forum 4 strategic areas: - Animal Health -Human Health -Agriculture -Industial bioetech

Policies for Bioeconomy Development

• Biotechnology

– 2020 Biotech Strategic Plan: improving the bio - businees enviroment/Biotec Sector Council

Uruguay is a recognized actor in the global Biotech Market.

The country develops, promotes and articulates scientific

knowledge & Innovation with its educational, technological, and

productive capabilities

Regulation

Social Development

Productive

Development

• Improved processes for registration of

biotech products

• Biotech Promotion Law

• HHRR: Training &Development

•Stimulate awareness

of the importance of

biotech innovation

• Biotech Industy Promotion Decree

•Strengthen Univ.-Industry Linkages

• Public Procurement

•Stimulate bio-business

• Internationalization strategy

•FDI capturing

For more information see: http://www.miem.gub.uy/consejos-sectoriales/biotecnologia

Policies for Bioeconomy Development

• Biotechnology An example… Project aimes at discovering the genetic basis of different diseases in Uruguay, laying the vital foundation for future growth of genetics in Uruguay through development of human resources and investment on infrastructures

80 Uruguayan genomes will be sequenced and analyzed in order to uncover the genetic basis for diseases in Uruguay, genomic variability and understand allele frequencies proper of our population The results from this project will be used to build a Uruguayan-specific database, providing basis for future personalized medicine in Uruguay. The genetic information will help to understand the susceptibility to genetic disease of the Uruguayan population.

Collaboration project: Institut Pasteur de Montevideo (Uruguay), Genomic Medicine Institute- Seoul National University (GMI-SNU, South Korea) and Macrogen Inc.

For more information see: http://www.pasteur.edu.uy/

Policies for Bioeconomy Development

• Climate Change/Low Emissions

– Uruguay has developed important mitigation, adaptation, and risk prevention & management actions

– Despite strong growth with greater inclusion, CO2 emissions profile of Uruguay remains low

– New institutional Framework: the National System of Response to Climate Change (2009) horizontal coordination among government agencies involved in climate change topics

– Design and implementation of national (National Response Plan to Climate Change, 2009) and sector specific plans (Energy Policy 2005-2030, climate-smart agricultural Policy, 2010)

Policies for Bioeconomy Development

• Climate Change/Low Emissions

Source: MVOTMA (2015)

Uruguay emissions are concentrated in the agricultural sector (food)

Emissions from Uruguays Energy sector are among the lowest in the world and will be even lower (3% of the world average)

Uruguay is a country with no net deforestation, a unique feature among developing countries.

Emissions: Main Sectors globally vs Uruguay

Policies for Bioeconomy Development

• Climate Change/Low Emissions

– Uruguay has particularly fertile soil and favorable ecosystems to produce more food

– Increasing world demand for food

FOOD

1) increase productivity 2) Reducing emissions intensity (emissions per kilo of product)

3) Build resilience, adapting to climate variability and reducing risk

Policies for Bioeconomy Development

Source: MGAP

Uruguay Agrointeligente

Agro-climate tools for a new climate smart agriculture

Policies for Bioeconomy Development

• Climate Change/Low Emissions

ENERGY

Source: UTE

Strong energetic matrix transformation process, which places Uruguay at the forefront in the use of renewable energies worldwide

Policies for Bioeconomy Development

• Bioenergy

– Towards a Green Economy . An example: Biogas/Waste Valorisation

Objective:

Transform the different kinds of waste generated in the agriculture and the agro-industry production chains in Uruguay into various types of energy and/or other by-products with the aim of reducing GHG emissions, while contributing to the development of a low carbon sustainable production model supported by an adequate technology development and transfer.

Source: MIEM

Policies for Bioeconomy Development • Bioenergy

TECHNOLOGIES DEVELOPMENT PLAN of low carbon

technologies for waste valorisation

Generate technical information for the definition of specifications according to each technology

Implement pilot projects to validate the technologies to the national reality

Identify regulatory and economical instruments that promote the selected technologies

Generate local capabilities to design, operation and maintenance of the different technologies

Source: MIEM

Institutional Framework

S&T

Biotechnology

Climate Change

Bioenergy

SNRCC National System of Response to Climate Change SNIA (National System of Agrop. Information) Agricultural Policy, 2010

Energy Policy 2005-2030

Biotechnology Council: Private/Public/Academia, i.e: Institute Pasteur, Montevideo AUDEBIO (private biotech chamber) INIA, LATU, etc

Uruguays transition to a

Green Economy

Biosecurity Cabinet

ANII (National Innovation Agency) PENCTI (Science & Technology Plan)

Institutional Framework

World Class Research Institutes.... Some examples:

Technological Laboratory of Uruguay

Incentives -Specific sector schemes- some Examples

• Biofuels: – Biodiesel and ethanol producing companies which are authorized by the

Ministry of Industry, Energy and Mining may have access to Wealth Tax exemption on fixed assets and to 100% Corporate Income Tax (IRAE) exemption for a term of 10 years. Applicable laws: Law 17,567, Law 18,195 and Decree 523/008

• Biotechnology: – Any activity generating biotechnological products, services and processes in

the national territory is promoted under Law 16,906. Such activities are subject to 90% IRAE exemption between 2012 and 2017, 75% between 2018 and 2019 and 50% between 2020 and 2021. To receive these benefits one of the following events must occur: - Implementation of a Development Program for Suppliers of biotechnological products and services. - The company should be a micro, small or medium biotechnological product and/or service producing enterprise. - It should be a new company producing biotechnological products and/or services. Applicable laws: Law 16,906, Decree No. 011/013

For more details see: http://www.uruguayxxi.gub.uy/

Incentives -Specific sector schemes.

• Energy Generation – Law No. 16,906. Net taxable income originated from the following

activities will be subject to IRAE exemption (in decreasing segments until 2018, 2020 or 2023, according to the category: a) Generation of electric energy from non-traditional renewable sources. b) Generation of electric energy through co-generation. c) Energy resources production from renewable sources. d) Conversion of solar energy into thermal energy. e) Conversion of equipment and/or integration of processes intended for efficient use of energy. f) Exploration of fossil fuel deposits and other deposits of mineral substances or elements suitable to generate energy through industrial methods. g) Services rendered by Energy Service Companies registered with the National Nuclear Energy and Technology Office (DNETN, for its Spanish acronym) and rated as A category. h) National manufacturing of machinery and equipment intended for use in the aforementioned activities. Applicable laws: Law 16,906, Decree No. 354/009.

For more details see: http://www.uruguayxxi.gub.uy/

Incentives -Specific sector schemes.

• Hydrocarbons

– All hydrocarbon-related activities, including the exploration, exploitation, transportation and commercialization stages are exempt from all existing and future taxes. Contracting and subcontracting companies of hydrocarbon exploration and exploitation works are eligible for tax benefits under Law No. 16,906, receiving customs tax, VAT and Wealth Tax exemptions. Subcontractors are also benefited from income tax exemptions, as applicable (IRAE or IRNR). Applicable laws: Law 14,181, Law 16,213 and Decree 68/013

For more details see: http://www.uruguayxxi.gub.uy/

Global Perspectives

• Changing world , new priorities

• Bioeconomy offers a future opportunity to reconcile economic growth with environmentally responsible action.

• Sustainable Development Goals are strong related to Bioeconomy

Ressource Scarcity Economic Power Shifts

Climate Change Digitalisation

Resource efficiency Renewable and recyclable products

Innovation and new businesses

DIRECCIÓN DE

PLANIFICACIÓN

Local Perspectives

Uruguays transition to a sustainable bio-based economy

Local Perspectives

Uruguays transition to a sustainable bio-based economy

• Strategic Foresight

– Recently created Planning Direction at Office of Budget and Planning/Presidency will lead foresight studies in different economic and social areas.

Local Perspectives

Uruguays transition to a sustainable bio-based economy

• Bioeconomy Foresight

– Bioeconomy , together with ICT are considered key innovation sectors

– Why Bioeconomy?

• Integration of strategic sectors of national economy: “holistic approach”

• Innovation/competitiveness

• Rural Development/Social dimension: Bioeconomy Strategy to reduce poverty & inequalities

Towards a National Development Strategy

Multidimensional and integrated vision, including technological, economic, geopolitical, environmental, ethical, cultural and social issues

Local Perspectives

Uruguays transition to a sustainable bio-based economy

• Bioeconomy Foresight - Possible futures for Bioeconomy in Uruguay? Example Biorefineries/Forest-Wood

?

DIRECCIÓN DE

PLANIFICACIÓN

THANK YOU! Macarena González Nappa E-Mail: Macarena.gonzalez@opp.bug.uy Address: Liniers1324-Piso 6 Montevideo-Uruguay http://www.opp.gub.uy/hacemos/planificacion