Identifying levers to unlock clean industry : background report

The study "Identifying Levers to Unlock Clean Industry" aims to feed the new Energy Union Integrated Strategy on Research, Innovation and Competitiveness. To reach the overriding goal of creating growth and jobs, the competitiveness of the EU28's manufacturing industry has to be improved. This is in part possible via a stronger diversification of traditional industries in the production of clean solutions (partly due to their own high energy demand), thereby increasing growth and export potential. Moreover, these clean solutions can spread in other industries and thus have efficiency gains and competitive advantages for the users of these technologies. The aim of this study is to gain insights in existing and potential markets for Clean Industries both at European and world level. Notably, the definition of "Clean Industries" within the context of this study refers to specific sectors or segments within the economy that supply clean solutions. This is different from the "green economy", where the focus is mainly on sustainable development all industries and sectors (OECD 2011, 2014). Clean Industries are the main drivers of the greening economy and therefore can provide long-lasting innovation and export potential, which is why these industries are the focus of this study. Markets for Clean Industries could be defined at the level of sectors and subsectors (for both goods and services), thus they should comprise technology providers, clean processes, clean technologies, clean products and related services. Clean Industries are not depicted in existing industry statistics (like NACE or ISIC). Hence, in order to judge competitiveness and innovation potential of Clean Industries, delimitation of the market segments and a methodology to depict them have to be tackled in the first place. The study comprises the results of three tasks of which the first is presented in Part 1. The first task comprised defining the scope of the Clean Industry and providing a methodology to identify priority sectors within the Clean Industry. Those priority sectors have been examined in more detail as part of task 2 and task 3 with regard to their competitive relative strengths, weaknesses, opportunities and threats. Where possible an assessment of the export potential has been included. Particular attention has been paid to the identification of barriers which prevent these Clean Industries reaching their full potential, and to the corresponding policy levers to overcome the barriers. Following the research logic of the study, this background report presents in PART 1 the results of the analysis to obtain a workable definition and taxonomy of Clean Industries. Subsequently the methodology for selecting Clean Industries that are the most promising ones in terms of policy prioritization is presented. Part 1 concludes with the resulting selection of 12 priority sectors, including the results of a sensitivity analysis and robustness check. In PART 2 of this report the competitiveness, barriers and levers of the 12 selected sub-sectors and activities are presented in more detail according to their position in the ranking which has been presented in PART 1. These chapters can be read as self-standing pieces. The annexes have been grouped at the end of the report.