Innovation for Sustainable Development – Policies and Good Practices 2 September 2015 Kaisu Annala Cleantech Strategic Programme Finland

OECD Ministerial Council Meeting Statement on Climate Change, 6 May 2014

…doing our part to limit effectively the increase in global temperature below 2ºC

above pre-industrial levels… How? …strong business climate for new technologies and innovations… …private investment in low-carbon and climate-resilient infrastructure… …markets for green goods and services to facilitate trade, international investment

flows, diffusion of low-carbon technologies and scaled-up private investment… …phasing out inefficient fossil fuel subsidies… …jointly mobilise USD 100 billion per year by 2020 from a wide variety of sources,

public and private, bilateral and multilateral…

U.S.- China Joint Announcement on Climate Change, Beijing, 12 Nov 2014

• President Barack Obama and President Xi Jinping

• The Presidents of the United States and China announced their respective post-2020

actions on climate change, recognizing that these actions are part of the longer range effort to transition to low-carbon economies, mindful of the global temperature goal of 2oC.

• The United States intends to achieve an economy-wide target of reducing its emissions by 26 % - 28 % below its 2005 level in 2025

• China intends to achieve the peaking of CO2 emissions around 2030 and to make best efforts to peak early and to increase the share of non-fossil fuels in primary energy consumption to around 20 % by 2030

© Cleantech Finland 4

President Obama 3 August 2015

European Commission Jean-Claude Juncker, 15 Jul 2014 • My first priority as Commission President will be to strengthen Europe's

competitiveness and to stimulate investment for the purpose of job creation.

• We need smarter investment, more focus, less regulation and more flexibility when it comes to the use of public funds. This should allow us to mobilize up to EUR 300 billion in additional public and private investment in the real economy over the next three years.

– infrastructure, education, research and innovation, renewable energy and

energy efficiency – projects that can help the younger generation back to work

European Commission Jean-Claude Juncker, 15 Jul 2014 • My first priority as Commission President will be to strengthen Europe's

competitiveness and to stimulate investment for the purpose of job creation.

• We need smarter investment, more focus, less regulation and more flexibility when it comes to the use of public funds. This should allow us to mobilize up to EUR 300 billion in additional public and private investment in the real economy over the next three years.

– infrastructure, education, research and innovation, renewable energy and

energy efficiency – projects that can help the younger generation back to work

The Finnish Way: BCD

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Strategic Programme of the New Finnish Government Bioeconomy and Clean Solutions, 27.5.2015

Ten-year objective: • Finland is a forerunner in the bioeconomy, circular economy and cleantech.

Government-term objectives: • Finland has achieved the 2020 climate objectives during the government term. (Part

of) imported fossil fuel-based energy has been replaced by clean and renewable domestic energy.

• The growth of cleantech enterprises, the increase in the sustainable use of natural resources, pluriactive rural enterprises and an efficient circular economy have created jobs

• Profitability of food production • The administrative burden has been significantly reduced.

© Cleantech Finland 8

Primary Actions for Governmental Strategic Programmes 1. BCD (Bioeconomy, cleantech, digitalization) up to a top

theme of the country brand 2. Advancing investments 3. Creating demonstration environments 4. Strengthening competitive operation environment

Cleantech • Cleantech refers to products, services and processes, which promote the use of natural resources while reducing emissions in the environment • Cleantech is not a specific industry but the use of clean technology spread throughout all industrial branches. • Cleantech includes

– Energy efficient products and materials and services enhancing energy efficiency – Totally new materials – Renewable energy, equipment and components – and also traditional end-of-pipe and end-of-stack technology etc.

Cleantech: The Enabler of the Circular Economy

Public funding (Tekes) for Energy and Environmental Innovation in Finland M€

2013 2014

Cleantech R&D Funding in Finland, PPP

>€ 200 M/a from Tekes +

>€ 800 M/a from companies =

> € 1 B/a

Global Cleantech Innovation Index 2014 • Israel, Finland, USA, Sweden, Denmark, Great Britain, Canada, Switzerland,

Germany, Ireland, Netherlands…

http://www.cleantech.com/wp-content/uploads/2014/06/WWF_2014_Coming_Clean_2014_FINAL.pdf

EU Eco-innovation index, 2013 • Sweden, Finland, Germany, Denmark, Great Britain, Spain…

“Finland is one of the most innovative EU Member States. The Finnish national innovation system is an extensive entity, based on education, research, product development as well as knowledge-intensive business and industry. The innovation policy is bound to science and technology policies, which together aim at ensuring balanced development and extensive cooperation within the innovation system. Eco-efficiency and environmental approach has traditionally been a baseline of Finnish production technology, which has been apparent through the research and development (R&D) funding and development of increased eco-efficiency in industrial processes.”

http://www.eco-innovation.eu/index.php?option=com_content&view=article&id=469&Itemid=57

Indicators on Impact by Tekes

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Examples of Finnish Technologies funded by Tekes • Finnish Cleantech includes about 3000 companies

© Cleantech Finland 18

The biggest HVO diesel (based on vegetable oil) producer in the world Production capacity of renewable fuel oil 2 Mt/a

NexBTL Fossil diesel

BIOGTS creates value from waste

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• BioGTS provides a scalable biorefinery solution that is based on biogas and biodiesel technologies and is designed for the treatment of organic biodegradable waste from municipalities, industries and agriculture. The solution converts the waste into renewable energy, vehicle biofuels, fertilizers and chemicals.

• BioGTS’s biorefinery plant for the treatment of organic waste from restaurants and food industry along with a demonstration of an energy self-sustainable farm will be operational in Finland in fall 2014.

Key markets China, Brazil, Ukraine, Nepal, Finland. In the future also: South-East Asia and South America.

BioGTS’s biorefinery for BioMpower Ltd in Laukaa, Finland will produce biodiesel and glycerol from organic waste from restaurants and food industry.

Clients Waste management companies, energy companies, agriculture, food industry.

St1 Biofuels turns waste into sustainable biofuels • St1 Biofuels Oy was established in 2006 with a goal of creating a

sustainable bioethanol production concept that could be utilized worldwide. • Since then, the company has pioneered in waste-based bioethanol

production with several plants built. The expertise of St1 Biofuels lies within biochemical processes, technology development, engineering, and project delivery.

• St1 Biofuels produces liquid biofuel from household, retail and industrial biowaste and process residues in Etanolix® and Bionolix® plants. St1 is building the first Cellunolix® plant, a plant that uses sawdust to produce biofuel.

• This world-class knowledge in waste-based ethanol production technologies is now available globally.

Key markets: Global

St1 produces ethanol, animal feed, fertilizers and heat & electricity from locally-sourced biowaste.

Clients Waste management companies, oil companies, supermarket chains, recycling companies, energy companies

UPM – forerunner in bioeconomy • UPM's Biofore strategy is based on efficient and sustainable use

of biomass. Renewable and recyclable raw materials, resource efficiency and innovations together provide new bio-based opportunities with lower environmental impacts.

• UPM is turning bioeconomy into reality. For example, UPM BioVerno renewable diesel is made of tall oil, a natural extract of wood and a residue of pulp production. Other examples include UPM ProFi and Formi - new innovative composites with high renewable composition made to replace fossil alternatives.

Key markets Global markets, especially Europe and APAC.

Products and services Paper, pulp, timber, energy, label materials, plywood, renewable diesel, bio composites, bio chemicals, wood trade and forestry services.

UPM BioVerno renewable diesel, made from tall oil, reduces CO2 emissions in the entire value chain by up to 80% when compared to fossil fuels.

KONE combats climate change with energy-efficient people flow solutions

• KONE’s energy-efficient elevator, escalator and automatic building door solutions not only safely move millions of people around the world every day but also help combat climate change and contribute to the development of next-generation green buildings.

• KONE provides services that help its customers achieve their eco-efficiency goals in every phase of a building’s life cycle – from designing and constructing to maintaining and modernizing a building.

Key markets KONE serves more than 400,000 customers across the globe and operates through more than 1,000 offices in some 50 countries around the world.

Clients Builders, building owners, facility managers, and developers.

Marina Bay Sands luxury resort in Singapore installed the revolutionary KONE UltraRope™, which cuts energy use of a 500-meter elevator ride by 15%.

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• Trimming Dynamically Saves Fuel • A proven way of cutting fuel consumption and CO2 emissions is to

optimize the vessel’s trim at all times. • Eniram’s Dynamic Trimming Assistant (DTA) helps the crew to maintain

optimum trim and save money by using less fuel. DTA is designed to ensure maximum performance in actual variable conditions by collecting prevailing trim, propulsion power and vessel movement data.

• Proven Fuel Savings with Eniram Maritime Energy Management Systems

Norsepower: biggest fuel savings on the market for cargo vessels using Norsepower Rotor Sail

• Norsepower Rotor Sail Solution is Norsepower’s modernized version of the Flettner rotor. This auxiliary wind propulsion system helps cargo vessels to significantly reduce fuel consumption.

• In favorable wind conditions, Norsepower Rotor Sails allow the main engines to be throttled back, saving fuel by up to 20% and reducing emissions while providing the power needed to maintain speed and voyage time. Rotor sails can be used with new vessels or they can be retrofitted to existing ships. The solution has the biggest fuel savings potential of all technologies on the market, with a payback period of less than four years. www.norsepower.com

Key markets Europe, Asia and North America.

Norsepower’s 18-metre high Rotor Sail was installed on a commercial cargo vessel, Bore’s M/V Estraden, in the end of November 2014.

Clients Shipping companies, whose vessels are cruising on routes with favorable wind conditions.

ENEVO: Waste Collection for Smart Cities www.enevo.com

BMH Technology

• Example: Tyrannosaurus SRF • The Waste-to-Energy systems are industrial scale waste

processing plants including heavy-duty shredding equipment, separation technology and state-of-the-art conveying and storing technology

• The plants are able to handle various types of waste in a single plant:

From household and commercial waste to industrial waste and difficult mono fractions to high quality SRF.

• ZenRobotics Brain is the name of the robot control technology

• ZenRobotics Recycler can identify wanted items and raw materials from the waste stream and reclaim them for recycling.

• Multiple sensor inputs in realtime, reacts to changes and learns from its mistakes – various camera types (visible light,

spectrometric cameras like NIR), 3D scanners, haptics , metal detectors etc.

• On the market, references exist

TRAMEL: mastering electronic and electric recycling with manual and technical handling

• Tramel is a recycling and reuse company specialized in electronic and electric recycling. The company has seven treatment sites and another 10 sites for collection. Tramel recycling process includes both manual and technical handling. Both techniques are essential in achieving the best possible environmental and economical results.

• Tramel provides recycling services including logistics and even pick up from companies and households. After processing Tramel is selling material products to the global markets.

Key markets Finland, selling material products globally

Clients Elker Oy, Serty ry, ERP Finland ry

Lahti Energia Finland

• Kymijärvi II is the world’s first gasification plant that utilizes solid recovered fuel (SRF).

• At the 160 MW plant, waste-derived fuel is gasified, the gas is cooled down and cleaned, and the clean gas is then burned in the boiler.

• The CO₂ emissions under the EU emissions trading system (EU ETS) have reduced by 26% from 2011 to 2012.

• The specific emission CO₂ reduced by 32% compared to the figures of 2011.

• In March 2012, the Forum for Sustainable Development selected Kymijärvi II as the Climate Deed of the Year in Finland

• Now a clear demand for accurate sorting of waste also among the greater public.

SAVOSOLAR: world’s most efficient solar thermal collectors with lowest lifetime cost

• Savosolar offers solar thermal energy solutions which require no other fuel than the sun. Their solutions provide clean and emission-free energy for a system life reaching over 20 years.

• Savosolar produces the most efficient solar thermal collectors in the world and thus secure the lowest lifetime user energy cost. The company’s nano optical coating on the advanced heat absorbers guarantees efficient energy collection making the collectors the most efficient in the market.

Key markets Nordic countries, Central Europe (DACH, Italy, UK, Benelux, France). Expansion plans in Japan, Middle East, South America.

Savosolar delivered roof integrated large area solar collectors for ENERGETIKhaus100® autark, the first affordable, energy-self-sufficient detached home by German construction company FASA AG..

Clients Users of large solar thermal systems like energy and industrial companies, large scale integrators. Heating system and PVT-integrators, OEM producers.

• CHALLENGING THE WIND We have challenged the wind industry by making permanent magnet generators (PMG) and full-power converters (FPC) the preferred technology for wind turbines. Our product portfolio covers all wind power applications from 1 MW to 8 MW and higher, including direct-drive, medium-speed and high-speed PMGs. Our FPCs are optimized to work with our PMGs as a fully optimized drive train package. • PREMIUM OUTDOOR SOLAR

INVERTER • MARINE, INDUSTRIAL...

MOVENTAS: 100% renewable energy – harnessing wind, wave and tidal energy

• Moventas is a renewable energy technology expert, lowering the cost of energy across the lifecycle of power generation – from superior wind gearbox design and manufacture to extensive after sales service for most wind gearbox brands.

• Moventas’s products and services apply along the entire lifecycle of your machinery, from quality design and manufacture to after sales service. As an original equipment manufacturer, Moventas represents the best service expertise in the industry and in addition to its own installed base, Moventas also offers comprehensive service to almost any other brands.

Key markets Global wind industry, wave & tidal energy industry.

Moventas delivered a lubrication upgrade for WinWind turbines in the Ajos wind park in Kemi, Finland in 2014

Clients Global OEMs & wind park owners and operators.

AW-ENERGY: leader in capturing and harnessing wave energy

• AW-Energy is the developer of WaveRoller, the leading technology for conversion of ocean waves to electricity. The revolutionary WaveRoller utilizes a hinged panel that is anchored on the seabed near the shoreline to generate electricity from near‐ shore wave energy.

• WaveRoller wave farms can contribute to the electricity generation portfolio of energy companies. Large wave farms can be built in the scale of +100 MW, thus being comparable to utility scale power plants in terms of electricity output. The solution is also suitable to isolated islands that currently rely on diesel generators as a source of electricity.

Key markets Countries and regions with coastlines exposed to open ocean. Western coast of North and South America, Atlantic coasts of Europe & Africa, Australia, India, Japan, New Zealand.

Following marine trials of WaveRoller prototypes in 2007-2008, a 300kW wave farm was installed in Peniche, Portugal in 2012.

Clients Primarily energy/utility companies, local governments/municipalities. In future investors looking for renewable energy projects.

KEMIRA: Where water meets chemistry™ • Kemira is a global chemicals company serving customers in water-intensive

industries. Kemira helps its customers in improving their water, energy and raw material efficiency.

• Kemira’s offering is based on application expertise and chemicals, such as coagulants, polymers, common process chemicals and paper wet-end chemicals. Sustainability aspects are systematically evaluated in Kemira’s New Product Development process to ensure that sustainability criteria are met from the perspective of Kemira’s own operations and throughout the value chain.

Key markets Kemira has operations in approximately 40 countries and sales to more than 120 countries.

Clients Kemira focuses on three core customer segments: Paper, Oil & Mining, Municipal & Industrial.

Kemira Fennosan PFA, an environmentally sound microbiological control system for tissue paper making, was awarded the 2013 Bronze Innovation Award by the Paper Industry Technical Association in France.

OUTOTEC sustainable use of Earth’s natural resources

• Tailored solutions ranging from studies and equipment deliveries to complete turn-key plants with life-cycle services including technology, process engineering, special equipment, project implementation, technical services, upgrades and operation and maintenance services

• In Zambia, Konkola Copper Mines Plc. wanted to replace its old smelter and build a new environmentally sound copper and cobalt production facility in Nchanga. The concentrate blend with high copper content indicated that it would be feasible to utilize the Outotec® Direct Blister Flash Smelting process.

Key markets - Operates globally - Key markets South America, Asia, Sub-Saharan Africa, Middle East

Clients Companies processing natural resources, globally operating and local mining and metallurgical companies, large engineering companies

DM 1160408

Kuva: Lamor

GENANO: efficient infection control and preventing airborne cross contamination

• Genano® is new air purification technology based on ionization. Genano® produce high-end products to the B2B clients and offer high efficiency purification and cost benefits where hygienic upgrades are urgent.

• Genano® Air Purifiers are the ultimate solution for air decontamination in public and private buildings. Genano Technology® removes even nano-size particles and eliminates microbes from indoor air. The technology is unmatched by any other air purifying technology.

Key markets Far East and Middle East, Europe. Distributors in 10 countries.

Genano purifiers prevent Mers virus infections in the isolation wards at Dammam Central Hospital in Saudi Arabia.

Clients Medical clients and laboratories.

NATURVENTION – best natural indoor air • NaturVention™ creates the best indoor air in every space with unique

technology. The company is the only one in the world with a unique system that naturalizes indoor air.

• NaturVention provides a solution to one of the world's biggest problems, polluted indoor air. By combining nature and technology, the company can restore the natural balance of indoor air by replacing unhealthy synthetic air with natural air. In other words, the patented FreshWall does the same thing that plants do outside.

Key figures - Turnover: EUR 360 000. - Growth: 200% in 2013 (compared to 2012). - Employees: 18.

Key markets Finland and Russia at the moment, Europe and Asia in the near future.

Clients Companies and public sector (B2B sales).

NaturVention’s FreshWall has a track record of functioning in 99 % of all cases.

SHOKs, Strategic Centres for Science, Technoloyg and Innovation, 2006 onwards

40 19.10.2011

“The way to work has really changed."

” The focused SHOKs do earn their place. SHOK is internationally a good approach.”

”Genuine discussions, a way to model the world and to find globally development ideas

is what is needed.”

” SHOKs must also be ready to interrupt programs fast.

It is also a success."

” Functioning ways towards further internationalization must be found..”

” If the big companies are left outside of the funding, the ecosystem is broken down."

”What could earlier have enabled this kind of information exchange?

SHOK is a new approach.”

”Co-research with customers has grown tenfold in SHOKs.”

”The companies are not brave enough.”

” It is important that SHOK management can cope and create new culture.”

GLOBAL CLEANTECH SUMMIT 2015 8-10.9.2015 Helsinki www.globalcleantechsummit.fi

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I Speakers’ Corner

Keynotes, 8.9.2015 Dr. Olli Rehn Dr. Anil K. Dr. Hashim Yamani Achim Steiner Sam Rikkers Pekka Ojanpää Per Langer Minister of Gupta K.A.CARE UNEP USDA Lassila&Tikanoja Fortum Economy

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Speakers, 9.9.2015, morning session Dr. Anil K.Gupta Antti Peltomäki Ricardo Melendez-Ortiz Ross Bruton Frans Nauta Nina Harjula EC DG GROW ICTSD Frost&Sullivan Climate-KIC Ladec

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Welcome to the Summit!

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Targets for BCD

• Cleantech

2012 2020 – Revenue* 25 B€ 50 B€

40 000 new jobs

• Bioeconomy

2012 2025 – Output 60 B€ 100 B€

100 000 new jobs • Digitalization TBA * Cleantech numbers do not include energy nor forest industry

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