Aerospace and Defence Industries – Board meeting
Stanhope Hotel, Brussels, 11 Dec 2019, 11:30
Aerospace and Defence Industries (ASD) – Board meeting
Summary - key messages for the Commissioner
The European Commission’s Green Deal is a game changer – for
the future of aviation, for a climate-neutral EU by 2050 and for
achieving at least 50% less emissions by 2030.
It is an exceptional opportunity for European industries to lead this
transition globally and maintain a competitive advantage.
Research and innovation will play a key role in the transitions that
are necessary for this to happen.
At least 35% of the Horizon Europe budget will be mainstreamed for
climate-related activities, including potential public-private
partnerships such as Clean Aviation.
Such public-private partnerships should be more impactful, more
inclusive, more flexible and cross-cutting that they are currently.
I ask industry to co-invest with us and commit to the ambitions we
have laid out for Horizon Europe, including in securing the overall
budget we have foreseen.
Open competitive calls should be the basis - to include the best to
deliver and deploy tangible results.
Alternative fuels, electrification and digitalisation can be part of the
solutions - to be safely integrated.
The current joint undertakings under Horizon 2020 (i.e. Clean Sky 2)
should focus on executing their activities, while the preparation of
institutionalised partnerships under Horizon Europe is a political
process led by the Commission services.
We need to exploit synergies with other parts of Horizon Europe and
with other EU programmes, to tackle issues “end-to-end” from
inception of ideas to deployment of solutions.
This means applying aerospace to new emerging needs – such as
fighting forest wildfires brought about by climate change.
You can count on me to bridge education, skills and innovation
within your sectors.
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Aerospace and Defence Industries – Board meeting
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Objective(s)
• Obtain the continued commitment of the assembled CEOs to co-lead a potential
Clean Aviation Partnership under Horizon Europe - one that is more impactful,
transparent and inclusive in helping Europe to achieve climate neutrality by 2050.
Line to take
• I would welcome your commitment for the ambitions of Horizon Europe and its
potential partnership initiatives, especially for a Clean Aviation partnership which
can play a strong role in driving climate neutrality by 2050, with tangible outputs
taken up in your products and services.
• I expect such partnerships to be more impactful than their predecessors, and
equally to engage more disruptive technologies and actors from other sectors.
• I encourage you to exploit synergies among the different parts of Horizon Europe,
and among the different EU programmes, in order to tackle issues “end-to-end” from
inception of ideas to deployment of solutions.
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Aerospace and Defence Industries – Board meeting
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Speaking points
Dear
Dear ASD Board Members,
Thank you for inviting me to your Board meeting. It is a real pleasure
to be here with you this morning.
As you know, from the Digital portfolio I am now “
landing” at the
Research, Innovation, Culture, Education and Youth portfolio within
the Commission. It is a fascinating and challenging endeavour. I am
ready to devote all my energy to creating tangible benefits for
European citizens and businesses.
We are very proud of the European Aeronautics, Space and
Defence industries. You have thrived and innovated to become
global players in a hugely competitive sector. Research and
innovation have been crucial factors in achieving this current
prominence.
In this new phase, I would like to continue counting on your support
in order to achieve our policy ambitions.
Aeronautics, Space and Defence are at the crossroads in the
priorities of this Commission, with sustainability and security at their
heart.
[Green Deal & Aviation]
President Ursula von der Leyen is proposing a “European Green
Deal” which will be the key headline ambition of this Commission. It
will cover a wide range of policies, among which clean aviation.
Our ambition is very high: to become the world’s first climate-neutral
continent by 2050.
By 2030 we plan to reduce overall emissions by at least 50%, or
even 55%.
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But, let me assure you, the plan will be based on social, economic
and environmental impact assessments that provide a level playing
field and stimulate innovation, competitiveness and jobs.
We have huge challenges ahead of us for climate-neutral aviation.
Research and innovation are again vital towards achieving this
objective.
The aviation industry must fully contribute to the achievement of the
Paris Agreement objectives, and in reaching the goal of climate
neutrality by 2050.
We need a series of impactful measures: including enhanced aircraft
and airspace efficiency, increased use of sustainable aviation fuels
and market-based measures.
Public pressure on the sector to neutralise climate impact will
continue to rise fast.
Failing to deliver the new technologies and improved aircraft in time
on the market, will have a negative effect on the aviation industry
and European competitiveness in the sector.
For aviation, we should regard this climate challenge more as an
opportunity than a threat. Decarbonising air transport is an
exceptional opportunity for European industries to lead this transition
globally. ASD has a key role to play here.
All in all, at least 35% of the Horizon Europe budget will be
mainstreamed for climate-related activities, including potential public
private partnerships and collaborative research.
[Research & Innovation incl. Partnerships]
Europe maintains a leadership role in global innovation. At the same
time, many competitors are investing faster than us, and they are
thinking big.
Nobody can rest on their laurels. We need to bolster both public and
private spending if we are to stay ahead of the game.
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Aerospace and Defence Industries – Board meeting
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I ask industry for committing to Horizon Europe and its potential
public private partnerships. I ask for bold steps and investing and
working with us.
You all know what it takes to invest together in partnerships like
these, even with some of your biggest competitors. You have
realised that, in this tough global environment, it is sometimes better
to work together with a competitor than not to work at all.
By working together, we will be able to deliver more research and
innovation and produce better results - we will have the joint
capacity to focus on priorities, notably the Green Deal and
digitalisation initiatives, that will underpin growth and jobs in key
sectors of the economy;
And we will certainly be able to multiply the investment effect.
With the existing partnerships in Horizon 2020, we are making some
progress, but, of course, we cannot settle for what we have
achieved so far; we cannot stand still.
We need to make much more progress in terms of real and relevant
impact in the market and on citizen’s lives.
This is why we need to make these partnerships even better, more
impactful, flexible, cross-cutting and open to engage other key
actors.
This will ensure that these partnerships remain inclusive, open to
anyone in Europe on the basis of open competitive calls, to ensure
we make the most of our collective brain power.
This will allow these partnerships to build on cross-cutting
approaches, from climate, energy and digital solutions to land, naval
transport, aviation and space.
This should also aim not only at developing solutions but also at
deploying them, aligning and leveraging all the investment
programmes available.
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For instance, greener aviation development means not only new
aircraft but also the ground infrastructure to enable new fuels and
electrification at airports. For this, the Connecting Europe Facility
programme can be instrumental.
Aerospace and defence were the driver of many new technologies
and solutions, then applied to other sectors. Examples are light
composite structures or computer-aided design solutions such as
Dassault’s CATIA.
Today aerospace and defence can benefit by adopting greener and
digital solutions spearheaded in other sectors, while adapting them
to ensure efficiency, safety and security. Examples are hybrid-
electric propulsion, quantum computing, cybersecurity and artificial
intelligence.
Horizon Europe offers a broad spectrum of technologies and
instruments to cross-fertilise innovation. This includes collaborative
research, the European Innovation Council (especially suited for
SMEs) and, of course, potential public-private partnerships.
[Partnerships preparation]
The preparation of new institutionalised partnerships is a political
process that is led and coordinated by the respective Commission
services.
As a result, it is the responsibility of the Commission to bring
together and negotiate with current and potential future private and
public partners;
The financial contribution from industrial partners is an issue to be
discussed with the Commission, not with existing Joint
Undertakings. The latter must focus above all on implementing its
last years under Horizon 2020 and on showing the real impact of
their activities so far.
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Evidently, support and mobilisation from your side in favour of a
sufficiently large budget - especially from finance ministers and
heads of government - is very welcome. It will be crucial as we
negotiate the next EU multiannual financial framework of the EU and
on the budget envelopes for programmes such as Horizon Europe.
This is particularly relevant for the Pillar II of Horizon Europe (Global
Challenges and Industrial Competitiveness). This is the pillar
addressing sectors such as aviation, naval, land transport, energy,
digital, industrial technologies and space.
As you know, EU Member States propose that the majority of the
budget in Pillar II of Horizon Europe shall be allocated to actions
outside of European partnerships.
This budgetary capping on Horizon Europe-supported Partnerships
has several consequences.
Firstly, we need to secure the overall budget envelope for Horizon
Europe, in order to secure the envelope for Partnerships.
Secondly, to focus the Partnerships where impact is higher and in
line with EU political priorities - including on sustainability.
Thirdly, to exploit synergies between partnerships, both in terms of
complementary content and common services.
Fourthly, to be proactive also in other parts of Horizon Europe, such
as collaborative research, and also in other EU investment
programmes to exploit synergies.
This includes an open, flexible and collaborative approach to
integrate promising SMEs and start-ups at due time into the
partnerships.
Some of these new disruptive companies may be incubated through
the European Innovation Council and the wider ecosystem that the
EU is putting in place - to give Europe's many entrepreneurs every
opportunity to become leading companies.
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[Synergies to seek - examples]
We all need to break our traditional silo approach and seek
synergies and new applications. We should ask ourselves “what can
we do with other programmes, with other actors, to tackle emerging
needs?”
Let me illustrate one example of potential synergies we are
exploring to boost, serving both citizens’ security and Green Deal
with aerospace, research and innovation.
More and more EU citizens suffer directly from forests wildfires. Not
only in southern Europe. In 2018 fires killed hundreds and ravaged
forests from Portugal, Spain, France, Italy, Greece … up to United
Kingdom and Sweden – not to mention the massive disasters in
other parts of the world.
This is an increasing security concern. This is also consequence of
climate change. And not only consequence, also double contributor
to climate change. Massive are the direct emissions from these fires
to the atmosphere. And massive are the tons of CO2 no longer
captured by the forests burnt.
Some experts say wildfires can account for up to 20% of total global
greenhouse gas emissions – well above the emissions from
commercial aviation, about which we are talking so much.
However surprising may it seem, the aerial means used to
extinguish fires are very old. For instance, when the night comes,
firefighting planes stop operating due to pilot safety. And the
wildfires go on.
Better aerial means can make a difference. More capable firefighting
planes, helicopters and drones. To prevent, detect and extinguish
wildfires in all conditions. To ensure safer operations and even
evacuation.
Climate change is an enemy to combat with all means. This is also a
fight worth fighting. Cutting-edge solutions from aerospace and
defence can be brought to bear.
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Citizens will then acquire a better appreciation of the industry.
This is just one of the many synergies we can exploit together, with
support from EU programmes including research and innovation.
[Skills]
Given my previous and current portfolio as Commissioner, you can
count on me to merge digital and physical innovations, and to bridge
education, skills and innovation, also in your sectors.
I am well aware of the skills challenge - to create and retain talent.
To encourage more students into science, technology, engineering
and maths.
To update the content of the university studies and vocational
training with the new industry needs, for instance in terms of
digitalisation and electrification.
To inspire students and give them the chance for a career in your
sectors, wherever in Europe, whatever their gender and whatever
their background.
[Closing]
The recent European elections showed that European citizens
expect us to do more to meet their needs.
Europe must take the lead in the transition towards a clean planet.
Europe must remain a responsible global leader with all means to
act in defence of its citizens.
That means European institutions and Member States mobilising all
their efforts and means to support growth and innovation,
particularly through public private partnerships, and by getting our
people together.
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We can only achieve our ambitious goals with a strong economy.
That is why we will invest huge sums in cutting-edge research and
innovation with those willing to make a real impact for Europe.
The challenges for the aeronautics, space and defence sector in the
coming years will be massive. You can count on my support for
making innovation and investment in aerospace and defence a
political priority.
My services and myself remain at your disposal to discuss and
deliver together tangible results for Europe.
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Defensive points
Why are you considering changing the Partnerships
approach in Horizon Europe?
The overall partnership landscape has become overly complex and
fragmented. The interim evaluation identified the need to rationalise
the overall European research and innovation partnership
landscape, to improve their openness and transparency, and to link
them to future EU R&I missions and strategic priorities.
The Horizon Europe proposal itself did not renew existing
partnerships nor establish new ones. It provided the framework for a
possible new partnership approach, including harmonisation among
existing Joint Undertakings (for example in their establishment and
exit criteria).
Is the Commission considering merging the current
SESAR and CleanSky Joint Undertakings operating
under Horizon 2020?
In principle we do not envisage merging the two initiatives. Their
objectives and approaches are different, underlining a distinction
between infrastructure/services (cover SESAR/ATM) and vehicles
(CleanSky).
While being both indispensable to the future aviation value chain,
the ATM partnership will focus on digital transformation and Clean
Aviation on energy transition and decarbonisation.
Nevertheless, the two initiatives will have to work closely exploiting
synergies and complementarities but keeping the implementing
structures independent.
We will have to review the current coordination mechanisms, which
should exercise policy steering and oversight avoiding overlapping
or conflicting activities and double funding.
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Is the Commission considering a green tax aiming at
reducing air traffic?
Should a green tax aiming at reducing air traffic be used to correct
for the negative externalities of air travel, it will require a very careful
impact assessment.
The Commission is aware that the impact of such a measure would
bring to the economic sustainability of air transport and implicitly EU
tourism industry, as well as their effect on the catalytic impact of air
transportation on national and regional economies, notably in terms
of employment and economic development.
Corroboration with other measures that may have equivalent effect
(such as the review of Energy Taxation Directive, the reduction of
free ETS allowances for airlines or the participation to the IACAO
Carbon Offsetting and Reduction Scheme for International Aviation
(CORSIA)) shall be also considered to avoid excessive burden on
air travel competitiveness.
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Background notes
Aviation overview
Nowadays aviation is:
• The safest and fastest mode of transport.
• The only one suitable for rapidly covering mid- and long-range distances.
• A highly competitive industrial sector, contributing directly to the EU economy
around EUR 200 billion per year (75 % through exports).
Challenges ahead include:
• Environment - without transformative solutions, aviation’s CO2 emissions could
more than double by 2050, compared to 2020.
• Competitiveness - new actors from China (COMAC), and partly, Russia (UAC)
are developing aircraft to challenge the current duopoly (Airbus - Boeing).
• Safety - changes in aircraft require timely and thorough certification by
authorities, as sadly reminded by the accidents of Boeing 737 Max.
Aircraft development, certification and EASA
Costs of development of new large aircraft can exceed EUR 10 billion. If a design issue
is detected at a late stage, safety can be compromised and the development costs can
increase by 10%. The cycle research-design-build-test-redesign drives up costs and
time.
Certification is the gateway from research & development to market uptake, as a
compulsory guarantee of safety and environmental compliance. The cost, time and
uncertainty related to certification are important factors in preparing new products and
services. It can take more than 5 years from preparation to completion of certification
tests for large aircraft.
The European Union Aviation Safety Agency (EASA) is in charge of certification in
Europe, including for products stemming from technologies developed in EU research
& innovation programmes. The sooner and closer involvement in research, the sooner
and better preparation of certification.
Clean Sky 2 Public-Private-Partnership and ASD
Clean Sky was created in part to permit more mature industrial technology
development and demonstration activities – as a public-private partnership between the
European Union and the aeronautics industry. Clean Sky has accelerated the
European aeronautics industrial roadmaps. It is expected to have a positive economic
impact once demonstrators’ technologies are applied in products on the market.
Clean Sky 1, under the FP7, had a value of EUR 1.6 billion. The EU paid 50% in cash
and industry the other 50% in kind. Clean Sky 1 aimed at demonstrating and validating
technologies for halving CO2 and external noise, and for reducing NOx emissions by
80%, along with a green product lifecycle.
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Clean Sky 2 has a budget of EUR 4 billion. The EU contributes EUR 1.755 billion and
industry EUR 2.2 billion. The aim of Clean Sky 2 is to integrate, demonstrate and
validate technologies capable of further reducing CO2 and NOx emissions by 20-30%,
and noise emissions levels by up to 5dB. It also aims at maintaining the global
industrial competitiveness of European aeronautics.
Clean Sky 2 retains a membership structure of three tiers. 40% of funds go upfront to
twelve pre-defined Leaders, including three entities from Airbus (Aircraft, Helicopters
and DS - ex EADS-CASA) and two from Leonardo (ex-Agusta Westland and ex-Alenia
Aermacchi). Clean Sky 2 programme structure and leaders are in this chart:
Contact:
DG RTD.D3), tel.:
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List of Annexes
Annexes (DG RTD)
• Annex I – ASD Background.
o I.1. CV
, ASD
o I.2. ASD main figures, companies and board members.
o I.3 Invitation e-mail by ASD
o I.4 ASD and Horizon Europe potential partnerships in Aviation
Annexes (DG GROW + DG HOME)
• Annex – Space, Defence and Security (speaking/defensive/briefing).
o 1. Space points + briefing (DG GROW, 29/11/2019).
o 2 Defence points.
o 3. Security points + briefing (DG HOME, 29/11/2019).
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