Eco-InnovationObservatory
TheEco-InnovationObservatoryfunctionsasaplatformforthestructuredcollectionandanalysis
ofanextensiverangeofeco-innovationinformation,gatheredfromacrosstheEuropeanUnionandkeyeconomic regionsaround theglobe,providingamuch-needed integrated informationsourceoneco-innovationforcompaniesandinnovationserviceproviders,aswellasprovidingasoliddecision-makingbasisforpolicydevelopment.
TheObservatoryapproacheseco-innovationasapersuasivephenomenonpresentinalleconomicsectorsandthereforerelevantforalltypesofinnovation,definingeco-innovationas:
“Eco-innovation isany innovationthatreducestheuseofnaturalresourcesanddecreasesthereleaseofharmfulsubstancesacrossthewholelife-cycle”.
Tofindoutmore,visitwww.eco-innovation.euandec.europa.eu/environment/ecoap
Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanCommission.
Eco-InnovationObservatoryCountryProfile2014-2015:Estonia
Author:KatreEljas-Taal,JohannaVallistu
Coordinatoroftheworkpackage:TechnopolisGroupBelgium
Acknowledgments
This document has been prepared with the support of the representatives of the Estoniangovernmentauthorities,namely:
• Mare Uiboupin – Ministry of Economic Affairs and Communications, Department ofForeignFinancing
• Ivo Krustok and Mihkel Krusberg – Ministry of the Environment, EnvironmentalManagementDepartment
AnotetoReaders
Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanUnion.Anumberofcompaniesarepresentedasillustrativeexamplesofeco-innovationinthisreport.TheEIOdoesnotendorsethesecompaniesandisnotanexhaustivesourceofinformationoninnovationatthecompanylevel.
This brief is available for downloaded fromhttps://ec.europa.eu/environment/ecoap/estonia
Tableofcontents
Summary....................................................................................................................1
Introduction................................................................................................................2
1 |Eco-innovationperformance.....................................................................3
2 |Selectedcirculareconomyandeco-innovationareasandnewtrends.......5
3 |Barriersanddriverstocirculareconomyandeco-innovationinEstonia....9
4 |Policylandscape:towardscirculareconomyinEstonia.............................11
ANNEX: Policy measures addressing circular economy and eco-innovations inEstonia ...................................................................................................................15
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Summary
Estonianeco-innovationperformancehasincreasedsteadilythroughout2013-2015.ThehighestdevelopmentcanbeseenintheEco-InnovationScoreboardindexesforsocio-economicoutcomesandeco-innovationactivities,whichcontinuouslyperformabovetheEUaverage.Despitethesepositivetrends,EstoniastillscoresbelowEUaverageoverall,mostlyduetoresource-intensiveindustrialstructure,lackofseedfundingopportunitiesforearly-stagestart-upsandlowlevelofmediacoverageoneco-innovationsubjects.
While in general Estonia does not target eco-innovation in policy documents specifically, thesmartspecialisationstrategy,togetherwiththeEstonianresearch,developmentandinnovation(RD&I)Strategy2014-2020andEntrepreneurshipGrowthStrategy2014-2020,aimtotacklethemajor barriers of the Estonian innovation system, which also hold back eco-innovation. Thebiggestpotentialforeco-innovationinitiativeswithinthesmartspecialisationframeworkarisesintheareasofICT,asanenablerofeco-innovativeICTsolutions,andtheuseofsmarttechnologiesformoreefficientresourcemanagementinthebuildingandenergysectors.Thefieldhasseennumerouseco-innovationsolutionsinthepastfewyears,largelyduetoinitiativesthathaveraisedawarenessandthefinancialsupportavailableforcompanies.
Despitethenewnessofthetermcirculareconomy,themostrecentpolicyinitiativesinthefield,notably theEstonianNationalWasteManagementPlan2014-2020,havealreadyadopted theunderlyingprinciplesofcirculareconomy–forexample,aimingtoreducetheamountofwasteproducedandrecyclingittothemaximumlevel.TheEuropeanCommission’sCircularEconomyPackagepublishedattheendof2015hasalreadyinitiatedanimportantdiscussioninEstoniansociety,somoresignificantcirculareconomyinitiativescanbeexpectedintheyearsahead.
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Introduction
Despite the fact that Estonians consider themselves an innovative nation, the most recentInnovationUnionScoreboard(EuropeanCommission,2015)andEco-InnovationScoreboard(Eco-IS)showsatendencytofallbehindotherEUcountriesinrecentyears.Ontheonehand,thereisastrongcultureofstart-upsandinformationandcommunicationtechnologies(ICTs)inEstonia,however,thebiggestvalueaddedisstillproducedbythetraditionalmanufacturingsector.ThelinksbetweenthetraditionalindustrialsectorandnewventuresisweakandICTisnotstronglyconnectedtoincreasedcompetitivenessofEstonianmanufacturingcompanies,whichtendtobebasedonmoreresource-intensiveproductionmodes.
Shifting towards eco-innovative solutions and more resource-efficient production modes areoftenperceivedas costlybyEstonian companies.At the same time, thereare limited fundingopportunities for small and early-stage eco-innovation initiatives. The support mechanismsprovidedbyEUstructural fundsrequirestrongproject-managementcapabilitiesandthereforeaffecttheeligibilityofsmallercompaniesforsupport.Thereisalsolackofawarenessandknow-howamongcompaniesonthepotentialtechnologiesforimprovingresourceefficiencyandtheavailableopportunitiesinEUandEstonia.Thisreflectsastrongerneedforawareness-raisingandknowledge-transferactivities.
The main challenge in Estonia in terms of circular economy is the oil shale industry, whichproduces approximately 80% of total waste (Ministry of Environment, 2014). There is a lowpotentialofusingthiswasteelsewhere,thereforethemainstrategyforthesectoristoincreaseitsproductionefficiency.
Therelevantpolicydocumentsemphasisetheimportanceofmoreresource-efficientproductionmodes,shifttowardsrecyclingandreuseofwaste,anddepictgrowthstrategiesbasedonthreemainsmartspecialisationareas–ICT,healthtechnologiesandenhancementofresources–whicharestronglyconnectedtopotentiallyhigheruptakeofeco-innovationsolutions inthecountry.However,thefieldsofeco-innovationandcirculareconomyhavenotbeenprioritisedclearly.AstrongerpolicyorientationintheseareasisneededinEstonia.
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1 |Eco-innovationperformance
TheanalysisinthissectionisbasedontheEU-28Eco-innovationscoreboard(Eco-IS)fortheyear2015.ViaitscompositeEco-innovationindex,producedbytheEco-InnovationObservatory(EIO),Eco-ISdemonstratestheeco-innovationperformanceofacountrycomparedwiththeEUaverageandwiththeEUtopperformers.Eco-ISisbasedon16indicators,aggregatedintofivecomponents:eco-innovationinputs,activitiesandoutputs,environmentalandsocio-economicoutcomes.
Figure1EU-28Eco-InnovationScoreboard2015,compositeindex
Source:EIO,2016
ThecompositeEco-ISfor2015placesEstoniabelowtheEUaverage,behindHungaryandaheadofLatvia.Outof28countriesanalysed,Estoniaisplaced19th.WhencomparedtotheoutcomesofEco-IS2013and2014,thecountryhasdroppedintherankingbythreeplacessince2013(whenitwas16th)butmadeaslightimprovementin2015comparingto2014(whenitwasranked20th).At the same time, the average score has improved noticeably from 72 to 79 in 2015 anddemonstratesthusasteadygrowthtrendinthefield.
Intermsofindividualcomponentsoftheeco-innovationcompositeindex,Estoniascoresaboveaverageforeco-innovationactivities.ThisislargelyduetoahighproportionofcompaniesthathaveimplementedmeasurestoreducematerialinputperunitoutputandahighproportionofISO14001registeredorganisations.Thismightreflectnotsomuchthelevelofeco-innovationinEstoniabutahighawarenessof internationalqualitystandardsamonglocalcompanies.Atthesame time, there are proportionately fewer companies than in the EU on average that haveimplementedinnovativeactivitiestoreduceenergyinput.
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Figure.2Componentsoftheeco-innovationcompositeindexforEstonia,2015
Source:EIO,2016
Aconsiderableimprovementhastakenplaceintheareaofsocio-economicoutcomes,whichnowisattheEUaveragelevel.Theemploymentrateineco-industriesandturnoveroftheindustriesarewellabovetheEUaverage(withscoresof131and120respectively).Atthesametime,exportsofproductsfromeco-industriesarestillatalowlevel.Thisisprobablyduetoahighnumberofneweco-industryventures,whichhavenotyetmanagedtostartexportingtoforeignmarkets.
Intermsofeco-innovationinputs,thecompositeofthegovernment’senvironmentalandenergyresearchanddevelopment (R&D)appropriationsandoutlays,asashareofGDP, iswellaboveaverage (with a scoreof 145). The shareof total R&Dpersonnel and researchers out of totalemployees is fairly good, at a level of 74. However, the total value of green early-stageinvestmentscontributestotheindex’slowcompositevalue,scoringonly14andreflectingalackofavailabilityoffinancingandinvestmentforyoungenterprises.
The eco-innovation outputs component scores low when compared to the EU average. Thecountryhasabove-average(score122)numberofeco-innovationrelatedpublications,butthegeneral lack of patent culture is reflected in the small number of eco-innovation patents inEstonia.Atthesametime,media-coverageonthesubjectalsoscoreslow,althoughthismaybeduetodifferentdefinitionsusedfortheterm.Theterm“eco-innovation”isrelativelylittleusedin Estonia, with “green economy”, “green ICT”, “cleantech” and other terms used moreprevalentlytodate.
Estoniastillhassomeroomfor improvement in thecategoryof resource-efficiencyoutcomes,withonlyBulgariagettingalowerscoreamongthecountriesobserved.Thereasoncanbeseeninthelegacyofenergy-intensiveindustrialstructureandthefactthattheresultsofinvestinginenergy-efficientsolutionsinproductioncanonlybeseenoveralongperiodoftime.
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2 |Selectedcirculareconomyandeco-innovationareasandnewtrends
Multiplenewinitiativeshavebeenstartedsince2013intheareaofeco-innovationandcirculareconomyinEstonia.Itmustbenotedthatwhilepreviouslytheterm“greeneconomy”wasoftenusedasakeywordinthefield,itisstartingtobereplacedwiththenotionof“circulareconomy”,whichalsocomprises thepreviousgreeneconomyactivities.Thereareanumberof initiativesfocusingoneco-innovationinitiativesaswell.
Firstly, a more comprehensive support system for companies pursuing eco-innovation hasemerged. An Energy and Environmental Technology Development Centre (RoheTAK) wasestablishedat theendof2014,withanaimtosupport thegrowthofviablecompanies in theenergy and environmental technology areas. The companies participating have launched aninitiative to become a cleantech cluster. The Green Industry Innovation support programme,startedin2013incooperationwithdonorpartnerInnovationNorway,hassuccessfullysupporteditsfirst15companiesandisexpectedtocontinueinthefuture.
Thestrongstart-upcultureinthecountryhascontributedtothefastdevelopmentoftheeco-innovation activities in Estonia, with support structures – such as the Tehnopol businessincubator,Mektory(InnovationandBusinessCentreofTallinnUniversityofTechnology,foundedin2013)andotherbusinessincubatorsanduniversity-businesscooperationcentres,suchasTartuSciencePark–havingledthewayinprovidinginitialsupportforstart-ups.
Thestrengtheningcooperationbetweenuniversities,publicsectorandbusinessesintheareaofeco-innovationinitiativeshasledtonotableexamplesemergingintheareasofsmartcitiesande-service,suchasthebikeparkingsystemBIKEEP,ane-plannerforpublictransportandothere-governmentinitiatives,andfurthergrowthofÜlemisteSmartCity.
An important part of ensuring the continuous development of eco-innovation and circulareconomy initiatives is raising awareness among different stakeholders. The Ministry of theEnvironmentawardsenvironment-friendlycompaniesyearly,withBalticFibresOÜwinningthemain prize in 2015. For years, the city of Tallinn has given out the Responsible EntrepreneurAward. Tallinnhas also given a special award for remarkable eco-innovations since2013. TheMinistry of the Environment has opened an awareness-raising measure to further informcompanies about ways to becomemore resource efficient (Krusberg & Krustok, 2016). TartuRegional Energy Agency organised a series of awareness-raising seminars for public officialsthroughout 2013-2014 on topics of eco-design and eco-labels, eco-innovation and greenprocurement, energy management, and implementation of environmental management inAustria.
ThenotionofcirculareconomyisfairlynewinEstoniaandisyettoachievesignificantrecognitioninsociety.TheCertificationCentreforRecyclableGoodswasfoundedin2015andaimstoopenits activities in 2016. A website mapping the locations of waste-disposal centres in Estonia(www.things.ee) has contributed to raising awareness on waste management and circulareconomyamongthewiderpublic.
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Finally, Estonian public sector has seen initiatives on innovative procurement and greenprocurement,withthestatebeingasmartprocurer(TechnopolisGroup,2014).
EstonianCell
Estonian Cell, which started its operations in 2006 in Kunda, produces high-quality Bleached-Chemi-Thermo-Mechanical aspen pulp. Between 2012-2014 the owner company of themanufacturing company Heinzel invested €17million in improving efficiency and securing thesustainabilityofthesite.Asaresult,areactorwasdevelopedwhichusesthesite’swastewaterandturnsitintobiogas.Thisallowsthecompanygraduallytoreplacenaturalgaswithbiogasintheirproduction.In2015,thecompanyproducedmorethan5millioncubicmetersofbiogas,becomingthelargestbiogasproducerinEstonia.
In2014,EstonianCellwasnamedEnvironmentallyFriendlyEnterpriseoftheYearbytheEstonianMinistryofEnvironment.
• Keywords:resourceefficientmanufacturing,waste-reduction,biogas
• Websites: http://www.envir.ee/en/news/most-environmentally-friendly-company-year-estonian-cell;http://www.estoniancell.ee
• Contact:Tel:+3726870000;[email protected]
(Source: www.baltic-course.com)
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SkeletonTechnologies
Thecompanymanufacturesultracapacitorsanddelivershigh-powerandhigh-energystoragesolutions,primarilyfortheautomotive,aerospace,industrialandrenewablessectors.Thefirstseriesofultracapacitorswerelaunchedin2012andhavebeenwelcomedbythemarketduetodoubledenergydensityandfivetimesthepowerdensityofprevioustechnologicalsolutions.Thecompanyisincludedinthe2015GlobalCleantech100list.
• Keywords:ultracapacitor,energystorage,cleantech
• Websites:www.skeletontech.com
• Contact:[email protected]
(Source:www.aripaev.ee)
OceanVisuals(ICDIndustriesEstoniaOÜ)
T he companydeveloped complementary solutions for theoil-spill detection systemOceanVisuals, based on information and laser remote-sensing technology, as part of the GreenIndustryInnovationsupportschemesupportedbyEuropeanEconomicArea(EEA)Grants.ThetechnologyisbasedonHyperspectralLidartechnologyandcanclassifythetypeofoil inthewater,measure the thickness of the oil in thewater, provide real-time data feed for earlywarningofoil spills,etc.Theresultingdata isshownonamap-basedgraphicuser interfaceavailable on web and IOS platforms as well as desktop applications. The complementarysolutions financed by the project included the development of a monitoring system thatprovides continuousdetectionofoil pollution indifficult conditions, suchas icywatersandsubmergedoil.
• Keyword:cloud-baseddatamanagement,spilldetectionsystem,cleantech,real-timereporting
• Websites:http://www.icdindustries.no/group-companies/ocean-visuals
• Contacts:+3726613199;[email protected]
(Source:http://www.icdindustries.no)
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Competition-basedeventsforstart-ups
Thebestchanceforeco-innovativeentrepreneurstofindfundingfortheirideaistoparticipateinoneofEstonia’smanyentrepreneurshipcompetitionsaimedatselectingthebestideasandteams for start-ups. In addition tomonetary support, the winners often getmuch-neededknow-howandadviceon runningabusinessandarewidelypromoted inEstoniaaswellasabroad.
Prototronprovidesfundingforyoungcompaniesthatneedtocreateafirstworkingprototypeof theirproductbeforeproceedingwith realproduction.Being created in cooperationwithSwedbank, Tehnopol Science Park and Tallinn University of Technology, Prototron hassupportedtensofnewideas,whichoftenaimtocreatesmarteco-invention.
Ajujaht was started in 2007 and over time has become the biggest entrepreneurshipcompetitioninEstonia.ParticipantsarechallengedtopresenttheirideasinaliveTV-showandthebesteco-innovationsreceiveaspecialaward.
Negavatt is a university student competition specifically aimed at gathering solutions forenergyandresourceefficiencythatcouldbeused intheuniversity.Thebest ideasovertheyearshaveincludedaverticalwind-generator,smartlightsolutions,creatingamicro-modelofthecirculareconomy,etc.
Astart-uphackathonseriesGarage48organisesweekend-longintensivecooperationsessionsingroupstocomeupwithinnovativesolutions.InMay2015,oneoftheGarage48eventswasdevotedtothesubjectofgreentechnology.
Finally,Rakett69isascienceTVshowforstudentsthatencouragesinnovativethinkingamonghigh-schoolstudents.
• Keyword:prototyping,entrepreneurship,start-upfunding
• Websites: http://prototron.ee/, http://www.ajujaht.ee/en/,http://www.negavatt.ee/,http://garage48.org/,http://rakett69.ee/
(Source:www.rakett69.ee)
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3 |Barriersanddriverstocirculareconomyandeco-innovationinEstonia
Although in recent years there have been examples of financial measures targeted at eco-innovations,aswellasinitiativesonawarenessraising,thegeneraleconomicenvironmentandlackofinitialseedfundingforinitiativescanbeseenasoneofthemajorgrowthimpedimentsinthe area. To generalise, thebarriers anddrivers of eco-innovation are similar to issues in theinnovation system in general. As can be seen from the previous examples, although eco-innovation is oftennot targeted in itself, it has becomepart of a generalmovement towardsenergy-efficientsolutions.Inaway,eco-innovationhasalreadybecomeanintegralpartofregularinnovationactivities(Krusberg&Krustok,2016).
ThenotionofcirculareconomyisstillverynewinEstoniaandisonlyjustseeingthefirstpolicydevelopmentsandinitiativesprioritisingtheareaspecifically.However, itcanbeseenthatthenotionhasbecomeasubjectofdiscussionandhasprevailedoverthepreviouslyoften-usedtermof“greeneconomy”.
Selectedbarriersanddriversofeco-innovationandcirculareconomyarepresentedbelow.
Barriers:
• Lowdemandtowardseco-innovationsolutions fromconsumersaswellas low levelofknowledge.Theshiftinconsumer-levelknowledgeanddemandhasstillnottakenplace.Lack of awareness is also an issue among public sector officials and businesses(RecommendReports,2014).Thelackofknowledgetransferpracticesamongcompaniesis a barrier to sharing best practices and the spread of more efficient technologies(Krusberg&Krustok,2016).
• Dependencyon foreign financingmechanisms, suchasEU fundsorNorwayGrants forfinancingtheRD&Iinitiativesofbusinesses.Thiscreatesabarriertoentryfornewandsmallcompanieswithlowprojectmanagementcapabilities,aswasalsoseenintheGreenICTprogramme(Uiboupin,2016).ThesituationisevenworseforEstoniancompaniesthatwouldliketoapplyforEU-levelsupporttoenhanceresourceefficiency,suchasLIFE+orHorizon2020. Estonian companiesmostly receive this support by being subsidiaries oflargeinternationalcompanies(Krusberg&Krustok,2016).
• Lackoffinancingopportunitiesforstart-upcompaniesaimingtoproduceeco-innovativesolutions,whichcharacterisesthesceneofstart-upsinEstoniaingeneral.
• Management routines in Estonian companies donot encourage recognising long-termstrategies and trends,which is often a prerequisite of eco-innovation.Amanagementstudymadein2015revealedthatapproximately20%ofEstoniancompaniesdonothavearoutinesystemformakinglong-termplans(EAS,2015).
• Lackofcomprehensivepolicyframeworkforcirculareconomyisabarriertoclosed-loopsolutions, and therefore moves towards a circular economy. The roles in differentindustries are fragmented, with waste-management often a separate business fromproduction.
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• Capabilities of the state as a smart consumer in environmental and innovativeprocurements are limited. Notable in energy-efficient construction (EstonianDevelopmentFund,2014), thecurrentprocurementpracticesare seenas law-centredandrigid.
Drivers
• Whileoften themore resource-efficient technologiesareconsidered tooexpensivebycompanies,eco-innovationpioneers(suchasreceiversofGreenICTprogrammesupportorindustrialcompaniesthathaveinvestedinenergy-efficiencytechnologies)haveshownthat a shift towards more resource-efficient and environmentally friendly productionmodes,orenteringthemarketwitheco-innovationproductsandservices,mayleadtoconsiderablecostreductionornewclientsegments. Asetof industrybestpracticesisforming.
• Emergence of support systems and organisations are strengthening the knowledgespillover in thecirculareconomy field.Notableexamplesofexistingstructures includeEstonianWindPowerCluster,WasteManagementCluster,EstonianICTcluster,across-clustercommunicationplatform“EstonianClusters”,PAKRIScienceandIndustrialpark,TallinnScienceParkTehnopol,TartuRegionalEnergyAgency,TartuSciencePark,etc.ThemostimportantrecentadditionistheEstonianCertificationCentreforRecyclableGoods.
• Demandandstandardssetbyforeignownersofcompaniesareseenasoneofthemaindriversofenforcingresource-efficiencystandardsamongEstoniancompanies.Estoniancompaniesarestronglydependentontheirforeignstakeholders.KundaNordicCementandABBareexamplesofinternationalcompaniesthathavebroughtaroundinitiativesofresourceefficiencyintheirEstoniandivisions(Krusberg&Krustok,2016).
• Thedevelopmentoftheeco-innovationandcirculareconomyfieldsgohandinhandwithsocial innovation trends; the developmental shift of civil society in Estonia that hasappeared in recent years provides a necessary impetus for the demand towards eco-innovation solutions to appear. Fast-growing civil-society movements, such as localcommunities and opinion festival Arvamusfestival, encourage environmentalconsciousnessinsocietyandcontributetogreenurbandevelopmentinitiatives.
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4 |Policylandscape:towardscirculareconomyinEstonia
CircularEconomy
The Estonian NationalWasteManagement Plan 2014-2020 (Ministry of Environment, 2013)showsthewaytowardscirculareconomyinitiativesinEstoniaandemphasisescompliancewiththe waste hierarchy principle. The plan states that whenever possible, waste generation isavoidedandthereuseandrecyclinginitiativesforuseofwaste,insteadofitbecominglandfill,aresupported.Reusingwaste,orusingthemtotheirmaximumlevel, isoneofthreestrategicaimsoutlined in theplan. Themain activities includeoptimisationofwaste collectionpoints,supportingcompaniesthatreusewaste,raisingawarenessonthesubjectofreusingwaste,andwastemanagementinformationsystems.
It is importanttonotethatasapproximately80%ofEstonia’swaste is theresidualsoftheoilshaleenergyproductionindustry,theinitiativesforefficiencyenhancementinthisareacanhaveaconsiderableeffect.EstonianOilShaleDevelopmentPlan2016-2030(MinistryofEnvironment,2016)isastrategiclong-termplanwhichforeseesmethodsformoreefficientoilshaleminingandreductionofnegativeeffectsontheenvironment.Itstatesthattherearewaysofreusingtheoilshaleminingwaste,however,moreR&Dinitiativesareneededtoexplorevariousoptions.
TheCircularEconomyPackage (EuropeanCommission,2015)adoptedbytheEuropeanUniontowards the end of 2015 has given way to widespread discussion on the subject in Estonia.Followingtheadoptionofthepackage,Estoniahaspublisheditspositionintermsoftheproposeddirective.Thepositionoutlines thata largepartof it is in linewithEstonia’sEuropeanUnionpolicyfor2015-2019(RepublicofEstoniaGovernmentOffice,2014),whichalsoemphasisestheimportanceofnewinitiativesintheareasofresourceefficiencyandcirculareconomy.CirculareconomywasalsothemaintopicoftheyearlyconferenceoftheEstonianWasteManagementAssociationinspring2016.Atthesametime,specificpolicyinitiativesfollowingthepackagehaveyettoappear.
Eco-innovation
Thesectoralreportsofthesmartspecialisationstrategywerepublishedattheendof2014andoutline Estonia’s development strategy in three growth areas: ICT, health technologies andenhancementofresources.Thepre-analysisofgrowthareaswas,however,alreadyintegratedinto the R&D and Innovation Strategy 2014-2020 and the Entrepreneurship Growth Strategy2014-2020,whichwerementionedintheEIOcountryreportof2013andstilleffectivetoday.
Whileeco-innovationisnottargetedinthesmartspecialisationreportsperse,theplannedfutureactionsformanecessarysupportingenvironmentfortheirdevelopmentandhelptotacklesomebarriers not typical only for eco-innovation but also for the Estonian R&D system in general.Noteworthy among the future actions are the plans to encourage technology transfer, smartbuildings in smart cities, renewed industry and use of integrated technologies, increasedinvestmentsintoknowledge-basedindustriesandenhancementofnaturalresources.
ThebiggestdevelopmentpotentialwithinEstonia’ssmartspecialisationframeworkcanbeseenin the area of enhancement of resources, which is divided in three: knowledge-basedconstruction,materialstechnologyandbiotechnology.
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Knowledge-basedconstructiontargetstheenergy-efficiencyofbuildingsanditsmaindriveristhenear-zeroenergystandard,whichwillcomeintoforcein2019forpublicbuildingsandin2021forallothernewbuildings.Thedigitisationofconstructionprocessesisseenasawayofreducingwasteintheconstructionsector.Thestricterenergyrequirementsfornewbuildingswillmeanahigheruptakeofbiomassforenergyproductioninthefuture.Aneedforsmartelectricitygridswillalsoemerge.
Thebiotechnologysectorgrowthreportoutlinesthatwhiletheactivitiesthatprocessthemediumproducts–includingprocessingfoodwasteforusebytheheatingindustry–arenotthepriorityinS3growthareas,theyareimportantforthenationalbioeconomydevelopmentplan.
Thepotential for ICTsectorgrowth inEstonia ismostlyseentobeasahorizontaltechnology,enablingawideruptakeofITsolutionsinothersectorstoincreaseefficiencyanddevelopnovelsolutions – such as e-health in healthcare and automation processes in industry. While notspecificallymentioned, thehighestpotential for theuseof ICTaspartofagrowthstrategy interms of eco-innovation is in the area of embedded computing, robotics and productionautomation.
Inadditiontonationalpolicies,agoodexampleofaregionalpolicy for thearea is theTallinnEnterprise and Innovation Strategy 2014-2018, which aims to support the development ofenvironmentaltechnologiesandtobenominatedfortheEUGreenCapitaltitlein2018.
GovernmentagenciesstillremainthemainintermediariesofEUfundsintheeco-innovationarea.TheGreenICTprogramme,fundedbyNorwegianandEEAGrants,hasendedandresultedin15successfullarge-scaleprojects.Itisexpectedthattheprojectwillcontinueinthefuture.
EstonianMinistryofEnvironmenthasstartedameasureonenergyandresourceefficiencyforcompaniesfinancedbyEUstructuralfundsfortheperiodof2014-2020.Themainactivitiesofthemeasure include increasing awareness, training specialists, resource-efficiency audits, andprovidinginvestmentsforimprovingenergyefficiencyinproductionactivitiesofcompanies.
PakriScienceandIndustrialPark
PAKRI is a privately owned science park that works in close partnership with public andgovernmental organisations. It combines competence, R&D, manufacturing and a testingcentre,whichfocusesonrenewableenergy,energyinhousing,smartgrid,smart-city,energystoring,electricalvehiclesandgreenfuel.Amongotheraspects,PAKRISmart-Cityfeaturesanautonomoussmartgrid,whichisoneofthelargestautonomousrenewableenergysmartgridsintheregion.ThescienceparkhasclosecooperationtieswithScienceParkTehnopol.
• Greentech,incubators,smart-grid,renewableenergy
• Website:http://pakri.ee
• Contact: Kaija Valdmaa,Greentech clustermanager, +372 53 448048; Enn Laansoo, Jr,CEO, Chairman of theBoard, +372 5216 858,[email protected](source:www.pakri.ee)
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CertificationCentreforRecyclableGoods
Thecreationof thecentre isoneof the first initiatives inEstonia clearly targeted at improvements in circulareconomy.Thecentrereceiveditsoperatingpermitinspring2016, starting its activities soon after. The centrewill beprovidingcertificationforgoodsthathavebeenmadeusingrecycledmaterials, for example, compost produced fromproductionwaste.
The initiativeaims to reassure consumers that thegoodsbought are of good quality and meet specificstandards.Thelong-termperspectiveofthecentreisto become an autonomous conformity assessment
unitfordifferenttypesofproductsmadeofrecycledwaste,includingfermentationwastefrombiogas production, sewage sludge compost and goods produced from construction anddemolitionwaste
• circulareconomy,wastemanagement,certificationcentre
• Website:http://www.recycling.ee/
• Contact:MargitRüütelmann,projectmanager,e-mail:[email protected],tel:+3726181618
InnovationandBusinessCentreMektory
Mektory was started in 2013 and is a unique melting pot for scientists, students andentrepreneurs. The organisation is a sub-division of Tallinn University of Technology andorganisesstudyvisitstothesiteanditssciencelabs,aswellasdifferenteventsencouragingentrepreneurshipandcooperationbetweendifferentparties.Amongotheractivities,Mektoryhostsapre-start-upincubator,operatesasatelliteprogramme,andrunstheMektorySchoolofTechnology.Themainspheresof focusofMektoryaredesignandproductdevelopment,developmentofbusinessmodels,mobileservicesandmedia.Mektory’sactiveapproachforexploring novel technologies has alsodeveloped and progressed cooperationprojects in eco-innovation and greentechnologies.
• RD&I cooperation, businessincubation,
• Website:www.mektory.ee
• Contact: Tea Varrak, Innovationand Business CentreMektory Director, tel: +372 620 3527,[email protected](source:news.err.ee)
(Source:http://www.recycling.ee/)
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Estonian Development Fund, 2015, Estonian Energy Sector 2015. Available athttp://www.arengufond.ee/wp-content/uploads/2015/11/EAF._Eesti_energiamajandus_2015.pdf
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EstonianMinistryofEnvironment,2014,EstonianWasteManagementPlan.Availableathttp://www.envir.ee/et/riigi-jaatmekava-2014-2020
EstonianMinistryofEnvironment,2016,EstonianOilShaleDevelopmentPlan2016-2020.Available at http://www.envir.ee/et/eesmargid-tegevused/maapou/polevkivi-arengukava-2016-2030
European Commission, 2015, Innovation Union Scoreboard. Available athttp://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards/files/ius-2015_en.pdf
European Commission, 2015, The Circular Economy Strategy, Available athttp://ec.europa.eu/environment/circular-economy/index_en.htm
GovernmentofEstonia,2014,EstonianEuropeanUnionPolicyfor2015-2019.Availableathttps://riigikantselei.ee/en/european-union
Krusberg,M&Krustok,I(2016),Interview,Tallinn
TartuUniversityCentreofAppliedSocialSciences,2012,Mappingthepublicprocurementfield in order to aid innovative and sustainable public procurements and jointprocurements.
TechnopolisGroup,2014,FeasibilityStudyfortheDesignandImplementationofDemand-side Innovation Policy Instruments in Estonia. Available athttps://www.mkm.ee/sites/default/files/final_report_part_1.pdf
RECOMMEND REPORTS, 2014, Estonian Report on Pilot-Action Status. Available athttp://www.recommendproject.eu/docs/PilotActionReportEE.pdf
Uiboupin,M(2016),Interview,Tallinn
15
ANNEX:Policymeasuresaddressingcirculareconomyandeco-innovationsinEstonia
Groupofpolicymeasures Typeofpolicymeasure
Specificmeasure
Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)
addcellsifnecessary
Focusofpolicymeasure(tickifrelevant)
Circulareconomy
Genericfocusoneco-
innovation
Resourceefficiencyimproveme
nt
Energyefficiencyimprovement
Reductionofemissionsincl.CO2
Otherrelevantareas(e.g.renewableenergy,etc)
SUPP
LYSIDEFO
CUS
Equity/businesssupport
Publiclyco-fundedventurecapitafunds
-SmartCap–co-foundedbyEstonianDevelopmentFund
x x x
Publicguaranteefunds
GuaranteeFund(Tagatisfond)
SupportforR&Dinpublicsectorandindustry
R&Dfunding
Enterprise Estonia supports with the following measures: CompetenceCentres, Smart Procurement, Green IT, Development of RegionalCompetenceCentres,
The support measures and programmes for 2014-2020 are only partlylaunchedtodateandotherinitiativeswillfollow.
Environmental Investment Centre supports the creation of innovativesolutionsforreducingwasteaspartofitsenvironmentprogramme
x x x x
Collaborativegrants
16
R&Dinfrastructure
AgovernmentinvestmentplanisputtogetheraspartofEUstructuralfundmeasurefortheperiod2014-2020:“SupportforresearchinfrastructureofnationalimportanceonthebasisoftheRoadMap”.
Fiscalmeasures
TaxincentivesforR&Dandstart-ups
Incometaxlaw,releasesreinvestmentsfromtaxation.NoextraincentivesforR&Dandstart-ups.
TaxincentivesforR&Dpersonnel
Education,trainingandmobility
Tailoredtrainingcoursesforcompanies,entrepreneurs
x x
MinistryofEconomicsmeasureonenergyandresourceefficiencyplanstoorganisetrainingcoursesforresourceefficiencyspecialists.
Advise/consultingforstartups,companies,entrepreneurs
Advisory and support activities are financed by Enterprise Estonia’smeasure,“DevelopmentofRegionalCompetenceCentres”.
Placementschemesforstudents
SupportforR&Dworkersrecruitments
Networksandpartnerships
Competencecentres,clusters,science-technology
parks
Enterprise Estonia supports with the Competence Centres measure andsupportforclusters
x x x x x
17
Technologyplatformsandinnovationnetworks
ScienceparksandCompetenceCentres,clusters
Foresightandcommonvisionbuilding
EstonianDevelopmentFundprovidesforesightreportsfordifferentfieldsandcreatespublicdiscussion.
x x x x x x
Marketintelligenceandotherformsofinformation
sharing
ForesightandresearchbytheEstonianDevelopmentFundandEnterpriseEstonia.
x x x x x x
DEMAN
DSIDE
FOCU
S
Regulationsandstandards
Regulations,targets,cap&tradeschemes
AmbientAirProtectionAct
InvestmentSchemeunderCO2bargainingsystemofKyotoprotocol x x x x
IndustrialEmissionsAct
Performancestandards,labelling,certification
EnvironmentalManagementprogramme
EnvironmentalImpactassessmentandenvironmentalmanagementact
x x x
Publicprocurement
“Green“publicprocurementofgoodsandservices
EnterpriseEstoniaSmartProcurementProgramme x x x x x
R&Dprocurement
EnterpriseEstoniaSmartProcurementProgramme x x x x x
Pre-commercialprocurement
18
TechnologyTransfer
Advisorysupportfortechnologyadopters
Enterprise Estonia R&D supports the Environmental Investment Centre,whichsupportsthetechnology investmentsofcombinedheatandpowerplantsandrenewableenergies
x x x x x x
Financialorfiscalsupportfortechnologyadopters
(e.g.grantsforpurchasingnewtechnology)
Environmental Investment Centre measures on energy and resourceefficiencysupport
TechnologyloansprovidedbyKredex
X X X X X x
Supportofprivatedemand
Taxincentivesforconsumers(e.g.forpurchasing
environmentallyefficientproducts)
Taxreductionsforproductsandservices(e.g.VAT
reductions)
Demandsubsidies(e.g.eco-vouchers,consumer
subsidies)
Kredex “Energy efficiency in apartment buildings” supports initiatives ofrebuildingapartmentbuildingstobecomemoreenergyefficient.
x
Awarenessraisingandinformationprovision
Environmental Investment Centre supports environmental awarenessraisinginitiativesaspartofitsEnvironmentProgramme.
x x x x x x
AbouttheEco-InnovationObservatory(EIO)
TheEco-InnovationObservatory(EIO)istheinitiativefinancedbytheEuropeanCommission’sDirectorate-GeneralfortheEnvironment.TheObservatoryisdevelopinganintegratedinformationsourceandaseriesofanalysesoneco-innovationtrendsandmarkets,targetingbusiness,innovationserviceproviders,policymakersaswellasresearchersandanalysts.
VisitEIOandDGENVEco-innovationActionPlan(EcoAP)websiteandregistertogetaccesstomoreinformationandtoaccessallEIOreports,briefsanddatabases
www.eco-innovation.euec.europa.eu/environment/ecoap
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