New Reality Final Report of the LoCaRe project

2010 - 2013

Pieter Vollaard, HZ University of Applied Sciences

30-6-2013

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Acknowledgements

This report has been written in commission of the Province of Zeeland (NL) on behalf of the Working

Group of the LoCaRe-project. The author is grateful for the generous support and valuable

contribution of LoCaRe team (Helena Cvenkel, Maria Paola Dosi, Tomas Ekberg, Vita Jokumsen, Leo

van der Klip, Helle Knudsen (lead partner) and Ries Zweistra). During the process of writing their

sharing of relevant data, information and expertise, as well as their input of critical reviews of drafts

were appreciated incitements to unremitting improvement of this paper. This report would not have

been possible without their support.

Pieter Vollaard

HZ University of Applied Sciences

P.O. Box 364

4380AJ Vlissingen

The Netherlands

E-mail: pj.vollaard@hz.nl

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New Reality

Final report LoCaRe project

Table of Contents

1. Introductory remarks 3

2. The partners in the LoCaRe project and their expectations 4

3. Synopsis of project activities (conferences, reports, site visits, workshop, subprojects) 7

4. Best Practices 15

5. Lessons learned 17

6. Regional SWOT’s 23

7. Conclusions 33

8. Appendix 35

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1. Introduction

This report encloses the synopsis of the activities of the LoCaRe project and the results, the regional

SWOTs and the overall conclusions from the project activities. It contains a brief explanation on good

practices that has been produced in the regions on their way to reduce the CO2 emissions and

enhance the regional employment at the same time and that are helpful for other regions to

promote the low carbon economy. In this report the focus is put on the description of the lessons

learned, the answer on the questions ‘Why and How’ it does work in the regions of the project.

So, this report gives an overview of the activities of the LoCaRe project and the success factors on the

road to low carbon economy in the regions. It has also served as important input for the

recommendations of the regions in the Green New Deal analysis. No additional administrative efforts

were requested from the regions to give content and form to this report. All relevant data and

information were gathered from existing documents such as the reports from the events in the

LoCaRe project and the website from the project. This report does not stop by up listing the facts and

figures of the project, but is trying to look for the meaning behind the data.

First a brief introduction is given of the EU LoCaRe project and the participating regions. Attention is

given to the interests and expectations of the regions to promote low carbon solutions and foster

green growth of economy and employment at the same time. After an overview of the activities of

the project and its subprojects in chapter 3 this report will zoom in on the best practices (chapter 4)

and the lessons learned (in chapter 5). In chapter 6 the results of the regional SWOT analyses are

presented and discussed. Finally some reflections will be made and conclusions drawn on the work

done. Relevant documents are shown in the Appendix.

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2. The partners in the LoCaRe-project and their expectations

It is the ambition of this Low Carbon Economy Regions-project to showcase possibilities for the move

towards Low Carbon Economies by ways of collaborating and coordination efforts in the regions.

Six European regions have joined forces in a common initiative to reduce CO2 emissions regionally

and locally. They aim to develop low carbon solutions at regional and local level and contribute to

economic growth at the same time. The six project partners are dispersed throughout the European

territory and face through their spatial location and different socio-economic characteristics a wide

range of development opportunities and obstacles. In that variety many different approaches and

activities were brought into practice.

The six regions are: Region Syddanmark (Denmark), Region Västra Götaland (Sweden), Principado

de Asturias (Spain), Regione Emilia-Romagna (Italy), Gorenjska (Slovenia) and Province of

Zeeland (the Netherlands). A short introduction to these six regions can be found on the website of

the project www.locareproject.eu .

In stimulating energy transitions and related sustainability issues, it is noticed that the division of

competences between the authorities on the regional and on the local level sometimes block co-

operation or delay progress. This LoCaRe-project has aimed at a better co-operation between

authorities - between different competence levels in the region as well as cross-border - in order to

stimulate each other. They also aspired to integrate energy and sustainability issues in other policy

sectors, as business development and education. This project has set itself at a mini-program in

which Regions and Municipalities connect to each other and work closely together to integrate issues

in the fields of energy savings and CO2 emission reduction (renewable energy, transportation

systems etc.) to more sustainable frameworks in regional policies and local implementation in

practice.

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The project started in April 2010 in a kick off conference in Gothenburg (S). The summarizing

conference will take place in September 2013 in Denmark. The project has been developed in a

number of collaborating activities between the participating regions and their municipalities across

Europe. The activities are designed to improve the effectiveness of regional development policies

through interregional cooperation and thereby contribute to economic and environmental

modernization as well as increased competitiveness in Europe.

Working in the political scenery and subject to the fluctuations of the financial and economic

surroundings the project partners did not escape from the dynamics of this time. In the course of the

LoCaRe project the Spanish participant of the Principado of Asturias, after playing an important and

highly appreciated role in the research on the main theme New Energy and the presentation of the

Analysis of New Energy in the conference, had to leave the project due to repeated change of

political government and priorities and subsequent lack of financial means. That did not prevent the

non-governmental Spanish partners to continue their participation in the sub-projects. Also other

partners were affected by political change and financial crisis. For example, Zeeland, Emilia-Romagna

and Gorenjska have been confronted by reorganization and/or budget cuttings. These changes have

influenced the project, but did not stop the activities planned.

The activities in the project have included networking and experience exchange (joint conferences,

workshops and site-visits) and sub-projects implemented by local, public organizations. This has

allowed for much needed intense intra- and inter-regional collaboration. Activities on both a

strategic and a tactical level were thus ensured.

The regions have focused on 3 cross-cutting themes: “New Climate”, “New Energy”, and “New

leadership”. The sub-projects, in which the local participants have played an important role, have

dealt with “Use of Renewables in Local Energy systems”, “Carbon Sinks & Carbon Capture”,

“Procurement Practices”, “Low Carbon Territorial Planning”, and “Public as a Driver for Low Carbon

Economy”. These sub-projects are linked to the mentioned cross-cutting themes. Local authorities

and partners were invited to participate and work together in sub-projects.

The project has received 3.2 M. Euro from the Interreg IV C program dealing with innovation and

environment. The total of the project amounts to 4.2 M. Euro of which the half (2 M. Euro) is

allocated to sub-projects in collaboration with local authorities in the six regions. The Interregional

Cooperation Programme INTERREG IVC, financed by the European Union’s Regional Development

Fund, helps Regions of Europe work together to share experience and good practice in the areas of

innovation, the knowledge economy, the environment and risk prevention.

2. Expectations of the regions

The interests of the six regions in the LoCaRe-project were very similar. In spite of all the differences

between these regions they shared the long term goal of green growth in a process driven by the

development of quality. The commitment of the regional governments was oriented towards the

promotion of a sustainable development of the regional economy and society within the

environmental and social context of the region, while at the same time they aimed to reinforce the

region’s competitiveness in an increasingly globalized market. Sustainable and low carbon

development was a key question in the regional strategies. Of course the differences between the

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regions in socio-economic circumstances and culture and values brought widely divergent

approaches and idiom: the regions in their nature face through their spatial location and specific

characteristics a wide range of developmental issues as well as opportunities. This diversity was

expected to create added value to the project and will also be supportive in the context of the EU

cohesion policy Most important and knitting together was the common commitment to the

transition to a Low Carbon Economy. Some regions were just starting on the road to low carbon

solutions and had high expectations of the sharing of knowledge and experiences and developing

new or upgraded solutions with the LoCaRe-partners. They highly valuated the transferability of best

practices in order to reduce greenhouse gas emissions, to raise awareness and involve people in the

active climate protection. In other regions’ policies climate and renewable energy had been a high

priority since a longer period. In doing so, the LoCaRe-project was expected to contribute to

achieving two important regional objectives: Increasing employment and reducing CO2-emissions.

The regions focused on methods to use the climatic changes as a driver to create growth and

industrial development. In the ‘Vision of a Good Life’ (Västra Götaland) sustainable development

was the main idea behind innovative development. Building a sustainably responsible society was

deemed to give the region the greatest potential to attract the most qualified human capital as well

as to hand companies in the region the advantages needed to maintain competitiveness in the future

world.

The regions realized that the scale of the challenges faced requires a complete transformation of the

way we produce, consume and distribute energy, while maintaining economic growth.

The LoCaRe project offered possibilities for cooperation with regional and local authorities across

Europe on specific methods to solve some of the future challenges. All the regions were preparing

(in the coming years) to draw up new regional development plans and it was expected that the

LoCaRe project would contribute with valuable inputs and experiences from other regions in this

process.

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3. Survey of activities

The activities in the LoCaRe-project are organized in the framework of the 3 strategic themes, the

sub-themes and the sub-projects.

New Energy, New Leadership and New Climate

The 3 main themes for the regions (“New Energy”; “New Climate” and “New Leadership”) have

addressed the strategic level with clear connections to the sub-projects that were aiming at practical

activities carried out by or in close collaboration with companies, organizations and municipalities.

These sub-projects have dealt with “Use of Renewables in Local Energy Systems”, “Carbon Sinks &

Carbon Capture in Local and Regional Systems”, “Procurement Practices of Public Bodies”, “Low

Carbon Territorial Planning”, and “Public as Driver for a Low-Carbon Economy”. All these issues have

touched to the competences of the Regions and Municipalities and can facilitate moving towards a

Low Carbon Economy. Regions and regional authorities must show New Leadership as catalysts for

others. The project’s activities are designed to improve the effectiveness of regional development

policies through interregional cooperation and thereby contribute to economic and environmental

modernization and increased competitiveness in Europe.

The results of the researches on the 3 strategic themes have found concrete shape in the main

reports: ‘Analysis on New Energy’, ‘Analysis on New Climate’ and ‘New Leadership: How can

consumers, companies and policymakers join forces towards a low carbon economy?’ These reports

have been presented in separate conferences (in Gijon Jan.2011, Bologna Oct. 2011 and Middelburg

Oct. 2012).

An extra dimension in the project is the involvement of the public itself. Citizens in many situations

have good ideas to stimulate developments, and in the sub-projects their resources have been

tapped into as well. The sub-projects are used to promote the participation of organizations,

companies and people in the LoCaRe-project. Their activities in practice has been described and

analyzed (see pp. 10-14 and pp. 18-21).

A great number of site visits gave a good overview on the results and possibilities of innovations

towards the low carbon economies in the different fields in the regions. This exchange of experiences

and best practices among participants from different regions has led to new ideas and actions in the

‘home’ regions. For the participants and the partners in the LoCaRe-projects the site visits have

proven to be an effective vehicle of knowledge dissemination.

The 5 sub-themes gave direction to the elaboration of the main themes and offered an inspiring

ground to put the new ideas into practice. The connections and topic intersections of the strategic

themes and the sub-themes are explained to public and participants.

Use of renewables in local energy systems

This theme is about the generation and use of sustainable energy sources (bio-mass, solar,

geothermal and wind energy) in local decentralised energy systems. Within the field of mobility and

infrastructure possibilities for adaptation to biogas or electricity driven vehicles should be explored.

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Carbon Sinks and Carbon Capture Soils, regenerative agriculture, and oceans are all natural reservoirs that can accumulate and store

carbon for an indefinite period of time. In these natural carbon Sinks lay both business potentials and

planning and leadership challenges. Through different types of innovations, the sequestration that

takes place in these reservoirs can be enhanced either by artificial means (e.g. Carbon Capture and Storage) or more naturally (e.g. enhancing the density of and in forests).

Procurement Practices

Sustainable procurement practices, i.e. spending public money responsibly on products and services

that foster sustainable development, means thinking carefully about what you buy: purchasing

products and services with high environmental performance, always considering the social and

economic impacts.

Public authorities at the regional and local level in Europe spend about €1.0 trillion a year on goods

and services. The sums are substantial possibilities to influence, move and change markets.

Procurement is a fundamental driving force at the local and regional level that combined with other

local and regional political decisions on transport, housing, food etc. could and should be used giving

incitements to companies and organisations and lead to more sustainable transport systems etc.

Low Carbon Territorial Planning

Territorial Planning plays a key –and often not appropriately acknowledged- role in implementing

Low Carbon Economy. Land use regulation becomes a powerful tool when it comes to contributing to

CO2 emissions reduction and promoting alternative energy schemes. Compact city planning and

sprawl prevention minimise the need of private, motorised transport; urban regeneration reduces

the costs of new infrastructure associated to green development; innovative schemes can improve

the efficiency of infrastructure, and smart street layout and public areas design are basic to increase

energy efficiency in buildings.

Public as Driver for Low-Carbon Economy (Empowerment)

Empowerment is the process of increasing the capacity of individuals or groups to influence and

make choices and to transform those choices into desired actions and outcomes. Central to this

process are actions which both build individual and collective assets, and improve the efficiency and

fairness of the organisational and institutional context which govern the use of these assets.

Empowered people and organisations have freedom of choice and action. This in turn enables them

to better influence the course of their lives and the decisions which affect them. An empowered

public will thus have an incentive to make both political and market demands, will feel that their own

actions matter, and can as such function as change-agents.

With this part, the strategic and tactical levels combine with the individual level in order to ensure

change and facilitate moves towards low-carbon economies. Sub-projects within this topic have

focused on enabling in one way or another, the local public as a driver for low-carbon economies,

and can focus on four aspects of practices: access to information, inclusion and participation,

accountability, and local organisational capacity.

So far (1st. of August 2013) in the LoCaRe-project altogether 22 public meetings have been organised,

i.e. 4 international conferences (kick-off meeting and 3 on the strategic themes), 18 workshops and

site visits (with 87 presentations all together). Summarizing conference and workshops are to come.

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Meetings up until now:

1. Conference: Kick-off (Gothenburg, April 2010)

2. Workshop: Territorial Planning (Avilés, June 2010)

3. Conference: New Energy (Gijon, January 2011)

4. Site visit: A biobased economy (Zeeland, March 2010)

5. Workshop + site visit: Carbon Capture and Carbon Sinks (Syddanmark, April 2011)

6. Site visit: Sustainable tourism (Emilia-Romagna, May 2011)

7. Site visit: Renewable Energy Systems (Gorenjska, June 2011)

8. Workshop on Procurement Practices + Site Visit (Zeeland, September 2011)

9. Conference: New Leadership + Site Visit (Bologna, Faenza and Conselice, October 2011)

10. Promotion of Biogas + Site visit (Västra Götaland , November 2011)

11. Agro meets Chemistry + Site Visit (Zeeland, March 2012)

12. Workshop on Empowerment + Site Visit (Kranj, April 2012)

13. E-mobility, a part of the solution? (Gothenburg VG, May 2012)

14. Master Plan for a Low Carbon Economy Area (Sonderborg, June 2012)

15. EU Sustainable Energy Week (Brussels, June 2012)

16. New Climate Conference – site visit Energy from water (Zeeland, October 2012)

17. Site Visit on energy improvement (Parma, November 2012)

18. Energy Savings in Buildings (Kranj, 5th February 2013)

19. Final Conference CARBON.CARE (Kranj, February 2013)

20. Workshop sub-projects (Gothenburg, 24 and 25th

March 2013)

21. Site visit on Masterplan/Strategic Energy Planning (Odense, 3rd

of May 2013)

22. Cleaner air and better living for Low Carbon Economy (Brussels, 12th June 2013)

Looking at this overall picture it is noticed that the focus points and content of the meetings does

reflect the combination and connection of the 3 main themes and 5 subthemes of the project. The

subtheme Carbon Sinks & Carbon Capture may have had somewhat less attention in meetings than

the other themes. On the other hand that subtheme was object of study and practice in the

(successful) sub-project Carbon Care (see p. 11). Somewhat over represented in the meeting was the

subject of the production and consumption of renewable energy.

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Of all these meetings event reports have been made according to reporting format. In the coming

chapters the results and lessons learned of the sub-projects are described.

Sub-projects

The results of the 6 sub-projects were presented and discussed in the workshop in March 2013. All

the sub-projects have filled out the reporting format as requested by the Working Group. Their

results, lessons learned and recommendations are included in the next chapters. The reports of all

the sub-projects are shown on the website of the project.

The Sub-projects have been very active in terms of communicating events, both in current classical

media and in new social media. Many articles have been published featuring activities and also

interviews in radio and TV have been carried out. All Sub-projects have put a lot of effort in the

exchange of experiences, mostly by defining good practice to share, either by descriptions or by Site

Visits. Most of the Sub-projects also worked with development of methods. Most of the Sub-projects

have reached out to a large amount of people at many events, due to the nature of the projects.

The local policies addresses were focused on policy areas as follows:

- Biobased Economy in the Provincial Economic Agenda in Zeeland, Västra Gotaland and Emilia-

Romagna

- Rural Development Plan in Emilia-Romagna and in the Province of Ferrara

- Regional Climate Mitigation and Adaptation Strategy in Asturias

- Slovenian Programme of Rural Development and the operative programme for use of biomass

2007-13

- Energy Savings in Educational institutions as an integrated part of Climate Mitigation Policy in

Sonderborg, Asturias, Modena and Gorenjska

- Covenant of Teachers to back up the implementation of Covenant of Mayors in Modena

- Climate Mitigation planning including promotion energy savings and optimization in local

businesses (Odense, Southern Denmark)

- Climate Mitigation planning including promotion energy savings and optimization in retail

- Promotion of environmental and waste management concerns locally towards retailers

- Promotion of sustainability issues by communicating to retailers and consumers (Emilia-Romagna)

BIOMAP - Biomass Market Place

The main objective of the Sub-project Biomass Market Place - BIOMAP - was to create three local

web based market places in which suppliers of biomass and potential customers can interact.

Another activity has been to exchange knowledge among the participants by selecting examples of

best practice in the three regions involved in BIOMAP. Examples of best practice have been found in

all three regions. A third important activity is information about the project to stakeholders and

other interested organisations. The project has been presented and discussed at many different

activities as meetings with Steering Committee and Site Visits, information days for stakeholders,

farmers, students and politicians.

In this sub- project a web tool has been designed and constructed. The basic version of the web-tool

is in English and the project partners have during this semester translated it into Italian, Dutch and

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Swedish. The web-tool BIOMAP will be exploited and marketed in Italy, the Netherlands and Sweden

by regional organisations or companies.

The tool can relatively easy be translated into other languages and be transferred to other countries

within the European Union. The project partners are responsible in their own countries for using the

tool.

Stakeholders from Zeeland in September 2012 have visited Västra Götaland to study best practices in

the field of biomass. CISE has carried out a study visit to biomass plants in Tretino-Alto Adige and

Austria, a meeting with Chamber of Commerce of Cremona and the Technological University of

Milano and has made a presentation of the project during the meeting “L`Europa nella mia citta”

(16th and 17th November 2012).

The final conference of BIOMAP took place in January 2013.

CARBON.CARE - Improvement of Carbon Sequestration Practices in Agricultural and Foresty Sectors

The main objective of CARBON.CARE was to design new approaches in the local agricultural and

forest CO2 sequestrations and carbon stock changes. A comparison was made of different

management alternatives to facilitate agreements between public administrations and farmers and

forestry operators. The partners have shared best practices concerning CO2 reduction and removal

procedures in each region. The focus of CETEMAS was to develop a methodology to determine forest

carbon sinks and calculate carbon footprint of different products. The CSRD Kranj started technical l

assessment of improved actions for reduction of CO2 emissions by the increase of the share of

biomass energy resources in local heating and the share of wooden constructions. Land&WaterTech

(LT) has defined a group of local partners, 5 farms and 2 food processing companies, to carry out

technical activities in order to obtain reliable data on CO2 emissions derived from agricultural

practices.

A promising instrument was creating regional operational groups that aim at linking research and

practice and incorporating practices needs into the research agenda, thus enhancing the energy

efficiency, the productivity growth and the ability to adapt to climate change in the primary sector.

To disseminate results, partners have organised local workshops in Kranj in spring 2012, in Ferrara in

September and in Asturias in November 2012. LT has transferred results of the assessments to the

Province of Ferrara with which they have a signed agreement for the exploitation of the results to

enhance the technical assistance to farmers.

LT has also sent results to the Region Emilia-Romagna Region for possible consideration in the

regional Rural Development Plan. A conference has been held in Asturias to exchange results of the

technical assessment. The General Director of Climate Change and Sustainability of the Principality

Paz Orbiz presented the Carbon Footprint Management certificate to MADERAS SIERO S.A. that

becomes the first company in Europe to obtain the certification of Carbon Footprint Management

developed by NEPCon. Seven articles and press releases have been published about the event. This is

a results that – duly supported by the public administration – could assist market operators to start

eco-innovative initiatives to reduce CO2 emissions in the supply chain.

The final conference took place in February 2013 and the final report has been published at that

occasion.

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ESA - European Sustainability Ambassadors

The ESA sub-project has aimed at developing effective methods to educate and motivate children

and young people to think and act more sustainably. By educating them as sustainability

ambassadors it was made possible to reach out to their families and involve the local community on

a broad scale in achieving the EU Climate Targets 20-20-20. All Sub-project participants have set up

activities to motivate and educate the target group according to their school system. The project set

up 3 target groups: 1st level is constituted by teachers and facilitators who bring the activities and

knowledge to the children and teenagers. 2nd level is the children who are the ambassadors. The 3rd

level is the parents and families. The main question focused on ways to encourage children to

develop a sustainable behaviour. In the process the leading motto was: If children have to change

their behaviour, they have to develop their personality through interest development'.

The process takes time and makes the teachers' involvement and personal interest a key player. It

was mainly tackled by empowering the teachers, in particular in the Technical School Kranj (SI) and

Sonderborg (DK). Tools and knowledge were made accessible for teachers who were encouraged to

set up their own activities. AESS (IT) has made a competition between school classes on reduction of

electricity consumption in students' homes and they have set up smart-meter device in pilot schools.

FAEN (ES) has taught the school children different games on energy and on the consequences in the

future of not saving energy. Also the children set up small models to produce energy themselves.

The Sub-project Participants will proceed with their activities: FAEN (ES) will keep on activities and

dissemination for schools on climate and energy topics. Sonderborg (DK) continues to develop the

concept of the Green fingerprint in kindergartens and schools through the association House of

Science. The concept is highlighted in spring 2013 with a sculpture of the fingerprints of 1000

ambassadors and placed in a central place in the city of Sonderborg. TSK (SI) prepares an

international publication on ESA activities. AESS (IT) continues class activities on sustainable energy

that takes place in spring. AESS was affected by the earthquake in the province in June 2012.

Activities in schools were postponed because of the damaged buildings, but they caught up on most

activities in the last part of the semester.

Local Commitment -for Low Carbon Planning and Empowerment in Small Communities

This Sub-project has focused on energy, development and on a method to approach planning and

empowerment in local communities in a new way. Compared to larger communities, there is less

focus on energy in households in rural areas. At the same time these areas have a high potential for

improvement. This combination leads to good opportunities for taking steps towards creating Low

Carbon Regions. The project aimed at analysing the present situation and identifying possibilities for

reducing energy consumption, for reutilisation of energy and for developing local energy resources.

The objective was to establish long terms strategies and visions for a local community in a joint effort

by farmers and other inhabitants, in which the farmers play an important role. All partners have

adopted a common work method, the so-called ABCD method - the Asset Based Community

Development Method.

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Sub-project participants have succeeded in involving local participants in workshops in the project.

They are now committed to continue the work with reduction of energy consumption and

development of local energy sources in their local area. There is a bigger awareness about energy

consumption and CO2 reduction. Also the project has raised awareness amongst local politicians

working with the ABCD-method. The method has been transferred from one area to the other

participating regions and can easily be used in other areas. It can be used on other topics to make

changes and collect input from local inhabitants where ever there is a shared interest. Also resource

mapping can be used and the method transferred from one project to another. The ABCD-method

can be combined with other methods depending on the situation, topic and context.

VACO2R - Voluntary Agreements for CO2 Reductions

The objective of VACO2R was to get local SMEs involved in energy savings and CO2-reductions. The

sub-project has identified common challenges and solutions across Europe and to use the strengths

and experiences from the involved partners. Participants from four different regions used Voluntary

Agreements as an efficient tool for business to reduce CO2 emissions and to implement agreements

between local authorities and business. The project has involved the companies’ staff in training

activities. Energy audits of SMEs have been carried out and each company has set up its own Action

Plan containing all measures to optimise its energy use. Following the technical audit SMEs signed

Voluntary Agreements with their public administration. Dissemination of examples of good practice,

guidelines and results has been an essential component of the project.

Due to the economic crisis some of the SMEs were less motivated to participate. Not all managers

did see the advantages of voluntary agreements at the beginning. Understanding that audits are a

way to reduce costs is of course a key question. A special effort has been put on empowering young

entrepreneurs, identified as a crucial target to promote eco-innovation and low carbon business. The

project has contributed to a Low Carbon Economy by creating a network of local companies

committed to the reduction of their carbon emissions by Voluntary Agreements. The involvement of

more than 1.200 persons (employees and SME´s managers) has been one of the key results of the

project. A report of best practices in public-private Voluntary Agreements implementation has been

set up. An Empowerment tool to implement Voluntary Agreements is available on the web for all

stakeholders.

The results of these projects were successful mainly because of the approach at local level:

- 148 SMEs energy audits have been carried out.

- 148 Companies have set up action plans

- 57 Voluntary Agreements have been signed

- Low Carbon Business Labels at different levels (Basic, Medium and High) have been developed and

implemented - Training courses have been developed and implemented

- Experiences have been exchanged between the partners within the working groups.

The development of the audit in the field of climate together with the other participants worked like

a transfer of good practice between participants. The climate audit is now being developed further in

Denmark in a new and larger scale project involving a larger part of the region and linking to a cluster

of enterprises producing energy efficient components and solutions.

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ZEROTRADE - A Public Private Governance Model for a Zero Carbon Trade Sector

The main objective of ZEROTRADE has been to develop, test and disseminate an innovative and

effective governance model in which public bodies are drivers for Low Carbon Economy

implementing actions to reduce CO2 emissions in the Trade Sector. The retail sector itself represents

a considerable part of the EU's GDP – approx. 11%. Retailers are in a strong position to influence

more sustainable consumption through their own operations, supply chains, and consumer

behaviour. They are bridges between consumers and producers and they can influence purchasing

decisions. Local authorities have a key role in mitigating climate change. They address the challenges

and facilitate the interaction between the public and private sector. The Sub-project activities were

carried out at two levels: one European and one local. At European level Sub-project Participants

exchanged best practices, discussing involvement of partners, communication and pilot actions.

At local level the municipalities signed Voluntary Agreement with consumers' and retailers’

associations, environmental organizations and large and small retailers. CO2 emissions have been

reduced through implementation of three types of actions: 1. to improve environmental

performance of retail outlets; 2. to reduce emissions in retail’s sale and procurement system; and 3.

to improve quality of goods to be sold. These objectives were carried out through sharing

approaches and experiences from partner’s regions and involving relevant stakeholders from the

trade sector. ZEROTRADE Voluntary Agreements with retailers and associations were signed to

officially recognize retailers' commitment. The effectiveness of the developed model has been tested

at local level promoting pilot actions to reduce CO2 emissions.

The Participants learned to involve stakeholders and to engage those targeting different objectives,

understanding their needs and adopting on-going modification in the activities planned. They set up

pilot actions at local level to implement activities in sample retail outlets: laboratories with schools,

exhibitions, questionnaires for consumers etc. They also have learned to use various instruments of

communication such as awareness campaigns. Promotion of activities and implementation of goals

will continue in all participating regions to enhance climate management of shops in retail and

involving other stakeholders such as hotels, offices and restaurants in the LoCaRe regions.

The sum total of feelings of the LoCaRe partners has been that the subprojects have performed very

well, and that they were an inspiring and promising part of the project.

The LoCaRe Newsletters

Since the start of the project seven (digital) Newsletters have been published on the LoCaRe website

(www.locareproject.eu) to give recent information on the activities. On that site also other news can

be found.

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4. Best Practices

1. All partners in the project LoCaRe and participants in its activities agree and put emphasis on the

value of Best Practices and the dissemination of experiences. They are a powerful tool to share

knowledge and prevent unnecessary research and experimenting from scratch at the start of project

planning. Furthermore it is agreed upon that BP’s in another region are the best argument and

strongest motivation for potential partners to join a project in their own region. “Yes, it can be done:

we are going to do it too!” Part of the project deliveries is a synopsis of best practices on relevant

themes to reach low carbon economy in the regions. In this chapter only a concise overview of BP’s

in the LoCaRe-project will be presented.

2. Examples of Best Practices can be found in all parts of the LoCaRE-project. The website of the

project has a link to Best Practices. In the reports on the strategic themes (the Analyses on New

Energy, New Climate and New Leadership) good practices are described and used for an evidence

based approach of the regions for that field. In particular in the Analysis on New Climate detailed

study is done at good practices in the regions that had substantially contributed to the reduction of

CO2 emission in that region and promoted green growth of employment as well. Moreover, in other

reports such as the final reports from the sub-projects, the value of BP is recognized and examples

are given. Looking closely at the lists made from different points of interest it is clear that the

practices described are mainly the same.

3. The Best Practices considered in this Analysis can be used as a benchmark of low carbon solutions,

as they represent a practical example of “excellence”. They vary from a technological innovation, a

new way of utilizing natural resources to a new working method or immaterial “tool” or new ways of

collaborating between stakeholders, or some combination of these. They share positive results for

the environment and for the regional economy and society. The best practices are concrete, already

experienced, implemented in practice. The practices touch upon the main emission sectors (industry

including energy, transport, agriculture and building). In that respect they can contribute

substantially to the goals of the “Roadmap for moving to a competitive low carbon economy in

2050”. These examples offer not only inspiration to the Regional authorities, but they can also be

implemented by the private sector, local initiatives, private and public partnerships, etc.). The BP´s

have a bearing on different system levels (from a small project to an effective strategy as a whole).

It is a detailed, but not exhaustive collection of "New Climate" Best Practice in LoCaRe regions. The

Appendix of that report includes an important list of BP to a number of 30.

4. In the Analysis on New Climate a tool is described to evaluate the BP on its transferability to other

regions with other relevant circumstances. The purpose is to diffuse experiences inside the Region

where the BP was born or exporting in other Regions. First a feasibility diagnosis is needed.

In order to transfer a successful BP to another region, or just extended to their referring sector, it is

important to analyze the key factors in transferability. A useful tool for that purpose is claimed to be

the definition of the “BP identity card”. The BP aspects to be highlighted are tightly connected with

their regional resources and chances, dependent on the specific task. Repeating success in another

region is not just a question of imitating the day to day workings of a Best Practice. In the “New

Climate analysis” the Best Practices Identity Card was produced as a checklist that policymakers and

16

practitioners might use in thinking though whether to mount their own version of a thriving program.

It describes the essential aspects of a successful Best Practice in its original region, in terms of

content of innovation, resources, people, cultural factors, institutional factors, procedures and

outcomes. In the BP Identity Card these aspects are also described for the region the best practice

has to go to. The match of these aspects in those two descriptions gives an indication on the

desirability and feasibility of the best practice to be transferred.

In the (only) case study in the Analysis on the low carbon solutions in the building sector this

proposed approach is applied with a satisfying result.

5. In the sub-projects much attention was paid to best practices. In some cases these good examples

served as an inspiration for the methodology to be used in the sub-project, and sometimes they were

a source of ideas and solution directions that gave input and impetus to a sub-project. Some of the

sub-projects have made their own list of Best Practices tailor made for the specific purposes of that

sub-project. E.g. in the BIOMAP project there is a list of 30 (!) best practices in the field of biomass

flows and conversions from the 3 regions participating in that sub-project. The best practices are

scattered all over the LoCaRe-project. At close look they handle mainly the same list.

6. Most of the activities of the WG in the LoCaRe-project might be characterized as a showcase of

best practices. The site visits and workshops have been a roadshow on the instructive and inspiring

successful examples of proven practice in the regions on their way to low carbon economy. Looking

at the list of activities (see p.9) from the point of view of the 3 strategic themes and the subthemes, it

can be concluded that in the activities of the WG the Best Practices and its communications have

covered the complete range of themes in the LoCaRe-project. At the same time it must be stated

that the outcome of that dissemination of knowledge and experiences is hard to perceive the

transfer of these best practices.

7. As said before the up listing of Best practices has been produced as part of the deliverables of this

LoCaRe-project.

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5 Lessons Learned

1. Learning is the essence of the project

One of the goals of the LoCaRe-project is to learn of one another experiences. Being part of the

Interreg IV C-program the project aims to promote interregional cooperation through large-scale

information exchange and sharing of experience. The LoCaRe partners are very well aware of the

value of sharing competences: the regions should have the same tools (knowledge, methodology,

attitudes) to achieve their goals towards the Low Carbon Economy. Therefor Lessons Learned lies at

the heart of the project. In the reporting formats of all the events was specifically asked for the

Lessons Learned.

For the partners it has been very interesting to learn how other regions work. They acquired

knowledge of the relevant circumstances and decisive factors of the development process towards

low carbon solutions in other parts of Europe. That insight in other political and societal systems has

brought them to understand how and why other regions do their things as they do. This has led to a

better understanding of Europe and the EU, as well on the community level as on the regional-local

level. This is a very awarding aspect of the project.

2. You can only learn from differences

On basis of the variety of the regions and their relevant differences in socio-economic and

environmental circumstances the projects will show a great variety and the lessons learned will be

regionally determined. It is obvious that different instruments are effective for the different

participating regions. This is even more the case of empowerment and participating citizens in the

(sub-) project because the results from the bottom-up processes and focus and competences of the

project partners will widely differ among regions. What’s more, by identifying regional shared goals,

this participating process will enhance regional identity and stimulate cooperation within

communities creating the motivation needed to carry a shared responsibility. One of the conclusions

of this chapter Lessons Learned might be that some activities of the project have enhanced regional

identities and enlarged the variety. Learning from one another does mean to become smarter and

not more identical. Enhancing the differences makes it possible to understand yourself and your own

situation better. Differences are beneficial.

3. Obstacles and failures are on the dark side

It is remarkable that although explicitly asked for in the reporting formats there are very few answers

given on the question for obstacles and barriers. Apparently the activities have found so much

enthusiasm and support that they have maybe unconsciously have overcome the difficulties.

Obviously it is more pleasant to share good results and the positive factors leading to success. It is

nice to give a reasonable explanation of the good results and your own contribution to that. However

it cannot prevent failures to happen; the transition to a low carbon economy has also got to deal

with uncertainties and risk management. One should be aware of the confirmation bias.

The partners in the LoCaRe project do agree on the risk of discontinuity. It is difficult in the current

situation of financial and economic crises to find ways to involve the regional authorities to the often

long term perspective of the low carbon solutions. When spending cuttings in public services are

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dominant and the working load is increasing, it is hard to persuade the politicians to the personal

involvement with LCE or to give support to the initiatives of companies and organizations. If the

LoCaRe project would not have been in execution, then the regional activities would not have been

there. The project is the license for existence of the steps on the road.

4. Regional lessons can also be up scaled

Most commonly the Lessons Learned are interpreted as instructive tools for comparable processes in

comparable circumstances. That is the use that was meant in the reports of the LoCaRe events. This

is the so-called horizontal carrying over. Here it is mentioned as also valuable for the vertical use.

Mostly it is seen as an opportunity for the regions that international agreements via European

directives and national rules tickle down to the region where the abstract goals are transformed into

concrete actions and hard facts. The Lessons Learned are not only interesting for other regions to

facilitate their way to low carbon economies, but are also of value for scaling up. National and

international negotiations could see what tools might be useful in complex situations where a lot of

different and sometimes conflicting interests must find effective ways to come to agreements with

mutual benefits on the long term. The positive results on the regional level with the inclusive method

of the meeting ( in so called arena of agora) of all the stakeholders to find a shared vision and action

program is a good recommendation for the national level to settle agreements and leave the

execution to the sectorial or regional players.

5. Lessons learned are strengths and opportunities.

The addition sum of the (variety of) Lessons Learned gives answers to the questions ‘Why and How’

the regions can contribute to reducing CO2 emissions and create economic growth at the same time.

In the reporting format of the events in the LoCaRe-project there were specific questions to the Why

and How of that particular activity. In essence that addition sum of those reported lessons is the

mould, the counter sample of the strengths of the regions and their tools to promote the low carbon

economy. In that respect the outcome of the chapter has a great resemblance with the following

chapter of the regional SWOT analysis.

6. LoCaRe events and sub-projects

As explained before the work of the LoCaRe-project included two main stream activities: activities in

the regions to disseminate and share knowledge and experiences and the activities done by other

partners (non-governmental organizations, local or regional authorities) in the sub-projects. Not only

have these sub-projects been very successful in their results, but also with regard to the lessons

learned the sub-projects have been very instructive. Most remarkable and satisfying was their

commitment to the road to LCE. Their contribution will not stop at the end of the (sub-) project: they

will go on. Their attitude can be typified by their conclusion: It is not a temporary project, but an on-

going process.

7. Biomass market has great regional potentials

The BIOMAP report learned that the energy production from biomasses is largely inferior to its

potential: there is room for action in enhancing their use. There are significant biomass assets within

regions and local communities in Europe which are suitable for the production of bio-energy or of

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other sustainable biomass applications. Supporting the development of efficient regional and local

renewable energy and bio-based markets is the key to achieve European environmental and

renewable energy goals in the years to come. Of course this presents a number of issues in terms of

the overall social balance of such operations. There are cases where public acceptance from

population of biomass plants is hard to be achieved, due to the bad smell discomfort, lorry traffic and

indirect land use change. It is necessary to raise the awareness of end users and citizens about the

potential of sustainable biomasses as energy source and higher added value of biomass applications

by the cascade model (bio-refinery). It is necessary to emphasise there is indeed a business case for

trading and exploiting biomasses. It needs support and facilitation, as in the sub-project of BIOMAP is

shown for the case of a web market-place. This subproject shows the essence of follow-up.

8. Certification and harmonization is needed

The sub-project CARBON CARE learned the need for knowledge of the method of Life Cycle Analysis

on CCR; the want for certification and harmonisation in the international market of product

demands. There is a considerable effort under way to develop agro-environmental indicators in

agriculture and forestry to provide a tool for policy monitoring, evaluation and projections. It will be

necessary to build on these initiatives. In this framework, CARBON.CARE has indicated that LCA could

be an adequate and widely sharable methodology to be profitably used in primary sector.

Intensive efforts to activate a benchmarking process have to be promoted in the CARBON.CARE

regions: in particular, the benchmarking of environmental performance by agro-forestry companies

should be introduced as a tool for focusing more closely on an area for resource efficient processing.

The overall cooperation of the partnership with regard to roles and involvement of partners in the

project was extremely positive. The subproject coordinator played an essential and inspiring role and

took the initiative to trigger the most relevant project phases (global methodology, guidelines for the

benchmark report, reconciliation of the results, final publications.

9. Youth as change agent

The first results of the sub-project European Sustainability Ambassadors (ESA) show that the work

needed more focus on giving the pupils (level 2 ambassadors) more tools, in order to have a bigger

impact in their homes, reaching their parents and families (the level 3 ambassadors). Another lesson

learned was that in order to change the DNA or the behaviour of the young people, it was crucial to

make a great impression on the students. Small projects only have a limited impact, when students

work only a few hours with sustainable topics. Based on these experiences it is recommended to

make longer lasting projects that will supply the youths with information and tools, so that they can

reach their families.

Based on these lessons learned different strategies are implemented in the different countries. But in

order to use this newly established network the ESA project has provided, the regional partners have

agreed on making a competition on sustainability between the countries in the spring of 2013.

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10. Trade and zero emissions

Sub-project participants of Zerotrade learned how to involve stakeholders and how to engage them

to targeting different objectives and achievements, understanding their needs and adopting on-going

modification in the activities planned.

Sub-project participants experienced pilot actions at local level implementing activities in sample

retail outlets: laboratories with schools, market with schools, exhibitions, questionnaires between

consumers, awareness campaign, public forums, seasonal wheels for large retailers, etc. They also

learned various instruments of communication such as brochures, gadget distributions, websites,

bike advertisement, green graffiti advertisement, tv and radio spot, press releases and press

conference.

11. Small enterprises and small steps

The most relevant results of the sub-project VACO2R have been the engagement of SMEs, with a

focus of young entrepreneurs, in the battle against climate change as well as the definition of GHG

reduction targets and actions to be implemented, the support to their accomplishment and the

monitoring and reporting the results.

The main beneficiaries of this project have been the companies and secondly the local communities

and the local authorities. The firms engaged in the project have experimented new technologies, got

trainings on environmental issues and have been part of a network sharing knowledge and problems

with other involved actors. The project has also learned the decisive role of individual entrepreneurs

that are willing and motivated on a personal basis in drawing up specific Action Plans each with an

included Energy Audit and training activities involving SMEs staff. Experiences in the sub-projects

give ground to the conclusion business driven action and solution in co-operation with broad

partnerships in society is a fundamental way to accomplishing a lasting change.

12. The power of empowerment

The sub-project of Local Commitment has been very successful in reaching large numbers of people

to participate in their local or regional activities. Their results in the 4 regions in this project show

that hundreds to thousands of individuals were attracted to the meetings of the subproject. The

involvement with the project was promoted by working with the ABCD method (Asset Based

Community Development). The positive ABCD-method improves working with local communities by

creating citizen awareness and strengthening local relationships and developing network. It’s a

simple way to find resources and it makes people involved and enthusiastic to create new concepts

and ideas. People were given opportunity to speak on their own about energy situations, wishes and

dreams. By addressing people directly and by showing respect to their opinions they more likely

open their minds to new ideas of sustainable energy solutions. The ABCD-method is a positive way to

start a dialog for the local politicians. Transferring the project to other areas is thought to be easy.

The ABCD-method can be combined with other methods depending on the situation, topic and

context. What is needed, is a shared interest, connected to a geographically area or a topic.

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Another lesson learned was the importance of facilitating the initial process, the certainty that the

administration delivers in relation to the project –e.g. information, resources, meetings, the support

for the locals when needed and preparation of the next step.

For the regional partners the subproject has improved their network with local communities. The

subproject has embedded empowerment in the local areas and the region. The local participants are

involved in the project and will in the future continue to elaborate their formulated ideas and

dreams.

13. Communication and public support

Working together in the LoCaRe-project was a positive experience to the regions. One of the lessons

for the regions is the value of communication. It is admitted that the dissemination of information

could be improved upon. ‘There is great need of active networks of relevant stakeholders within the

participating Regions. Wider and more active networks would increase the benefit of the activities

performed in the project. More persons and organizations would take part and - in turn - spread the

message and the results of the LoCaRe project to a wider "audience”. The project has clearly

improved the communication of results and activities in the course of time. Modernizing the

communication vehicles (internet film, YouTube) and broadening the target groups to consumers

have helped to reach the public involvement.

14. New knowledge and new methods

During the course of the LoCaRe-project the regions have acquired new knowledge, new methods

and new competences. In the other regions new knowledge about new technologies was shown that

was until then not known or at least not experienced before. Of course the lessons learned differ

from region to region, but the regions mentioned e.g. the industrial symbiosis in industrial sites, the

intersection between agriculture and chemistry, (“algae in tubes”) and tidal energy. Interesting for

other regions was the project of e –mobility and the regional biogas Program “Biogas West in Västra

Götaland”. Inspiring were called the site visits with good examples of green tourism with free

sustainable transport and local cooperatives for district heating, economically feasible even in small

scale.

The regions got acquainted with new methods as new structures of and the debate forum that was

very inspiring. Other examples of methodology as ABCD and Open Space were very instructive.

It is obvious that an open mind and the readiness to adapt the best practices of other Regions for

the best fit in the own situation is essential. Such a flexible attitude can be learned.

15. Learning can also mean to do not

A remarkable but very valuable follow up is the conclusion not to continue a studied subject. Being

part of the LoCaRe-project the region of Southern Denmark has organized a workshop on CCS and

CCR. This has been a very instructive exchange of thoughts and experiences; the participants have

learned a lot. Yet this subject is not one of the favourites of Southern Denmark: it is skipped from

their priority list. On the other hand in other regions carbon sinks (CS) as benefit of the regional

nature is still on the action list (Gorenjska). Attention should be given to the distinction between

22

carbon capture and storage (CCS) as an industrial output solution and carbon sinks as natural capital.

Although CCS is high on the priority list of the EU and national governments, none of the

participating regions put carbon capture and storage as new activity on its new strategic regional

plan.

16. Cooperating with many partners is difficult, but necessary

The regions learned about the interdependence of the different actors, the emerging role of NGOs

and consumers and the importance to link with them to the development of a Low Carbon Society.

With respect to the regional differences it was observed that everywhere the cooperative model

with initiatives from the most involved stakeholders is the most successful in terms of results. The

most important issue is to take the lead as a regional authority towards other actors in the region

and to involve citizens in a transition to a Low Carbon Economy. Regions can have a leadership role

as an authority and planning body, but also as a mediator and as an enterprise setting the good

example. The leadership of the Region is most effective in an equivalent and facilitating mode; this

means listen to the stakeholders, also in case of diverse goals and perspectives, and be willing within

your own policy boundaries, to adapt schemes, instruments, and even operational goals, as long as

this is not counterproductive to your own strategic long term goal of a low carbon economy.

17. LoCaRe is attractive for regional politicians

The LoCaRe-project was a powerful tool to involve and commit local and regional authorities.

Policymakers are not always aware of initiatives of the market, unless they are looking actively for

them. Or in other words: The LoCaRe-project helped the authorities to learn important activities and

attitudes in their own region, to get acquainted with the innovative initiatives around the corner in

their own streets. Politicians’ awareness and involvement is important to make progress on the road

to LCE, but success in that long lasting transition is only possible mustering every force inspired by

public leadership.

The analysis of New Leadership has been very important in some regions for the debate on how to

become a Low Carbon Economy Region. It has had clear impact on the new Strategy for Growth and

Development in Västra Götaland 2014 – 2020, VÄSTRA GÖTALAND 2020. Without the LoCaRe-

program the study had certainly not been done. But even more important is that the opportunity to

discuss the results in a European context has sharpened the motives and the arguments and made

the report even stronger.

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6. SWOT as a guiding tool

1. Introduction

To identify the key factors that are decisive to achieve the objectives of a low carbon strategy

regional SWOT analyses were executed in 2013. The tool of SWOT analysis aims to identify relevant

attributes of the regions that are helpful or harmful to achieve the objectives. Besides these internal

factors also external circumstances and trends are taken into account that influence either positively

or negatively the transition to an energy and resource efficient economy. The regions used their own

methodology to execute the SWOT analysis in their region.

From the start (kick-off meeting April 2010) of the LoCaRe project SWOT analyses has been used as

an instrument to ground the strategy and policy of the region on. The report Analysis on New Energy

was presented and discussed in a conference Jan. 2011 (see p. 9) and part of that study was also a

SWOT analysis in relation to energy efficiency and production of energy from renewable sources. In

that case a questionnaire was used to gather the data from all the regions.

This chapter starts with some preliminary remarks before overviewing the results of the separate

SWOT’s of the regions. Next in the summary a bird’s eye view is given on the most significant internal

and external factors for the region to succeed on their road to low carbon economies.

2. Remarks

The variety is instructive.

The relevant factors for the transition to LCE in the regions are not the same; they differ significantly.

The diversity regards to the national and regional economic attributes (national debt and public

spending, GRP, ICT and energy intensity, share of renewables, R&D budgets), stadium of transition to

LCE, natural resources, culture and values. For example, the long term goal for Västra Götaland is to

have in 2030 an energy system without any fossil fuel, while in the Netherlands it is the national (and

regional) ambition to produce 16 % of the primary energy from renewables in 2020 (and no goal is

set for 2030). Some regions recently started their strategy on low carbon solutions, while others are

working for a long time on LCE constantly thinking of new ways to reach that goal.

That variety results in different points of intervention and point of application on the way to low

carbon solutions. For instance, in the project ZERO in Syd Danmark the emphasis is put on the

limiting of energy demand and the production renewable energy in the Trias Energetica; in some

other regions (Sl, It) the phase of the transition and different economic circumstances compel the

start of low carbon solutions to measures in the field of energy efficiency, serving environmental

reasons as well as for the sake of cost reduction. The start is always to pick the low hanging fruit.

Some regions focus on technical or technological solutions, thus combining emission reductions with

economic innovations in their industries. Others are putting effort (also) on the change of consumer

behaviour and cultural values through education and communications followed by coherent actions.

Widely agreed is the notion that cultural changes in norms and values are needed to succeed

completely on the road to LCE.

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It must be recognized: differences in all aspects are the best guarantee for finding solutions that will

work. Differences mean also diversity in ideas, in approach and research directions resulting in a

variety of specific solutions effective in the specific situation (there is no silver bullet). The road to

LCE is a voyage of discovery: variety is a great learning potential.

The regions are the place of action

The regions are essential. Regions and municipalities of Europe may have significant impact on

development if they systematically combine their means of control into strategic and long-term

action plans for a low carbon economy. The implementation of (inter)national rules and

regulations for an energy and resource efficient economy will take place in the regions and

municipalities where it will affect companies and citizens: the choice on investments in

technology and energy systems, the promotion of attitudes towards sustainability, the priority

given to a low carbon society in local and regional planning need local and regional stimulus and

decisions. The regions are necessary for scaling the measures to an effective level: the energy

system, the traffic system have a regional scale. A promising approach for local and regional entities

is the inspiring combination to cooperate with national entities on the international objectives and at

the same time promote the initiatives and measures that they could decide on locally.

At the regional level there may be a lack of legislative and financial power. The regions mention it as

a weak point in their role towards LCE. On the other hand it can be regarded an advantage: the arena

is not dominated by one partner that has the power to force the others partners into implementing

an imposed policy. Cooperation must be gained between equal partners by persuasion and

conviction, agreement and commitment must be based on the long term mutual benefits of the LCE

strategy. That urges to a long term vision and endurance from the authorities and in particular the

politicians to go beyond their own term and constituency (Recommendations see report New

Leadership). It is remarkable that in some regions (SD and VG) the support and dedication to the low

carbon economy do not show to be influenced negatively by the financial and economic crisis. The

long term vision and commitment seems to be internalized in society, solid and robust to stand up to

the fluctuating economic situation.

Sharing is increasing knowledge

The methodology knowledge and dissemination is a challenging opportunity. Several regions indicate

their lack of knowledge on relevant areas that are important in the transition to LCE. On the other

hand stakeholders in the region ask for an active role of the region to help them in their plans and

actions to low carbon solutions. Especially in case the financial and legislative means for the region

are limited, there is great importance in the role of the region as facilitator of the process, with

access to the relevant knowledge and methodology. Methodology generates and disseminates

knowledge. Just the diversity between the LoCaRe-regions will offer many opportunities to exchange

experiences and disseminate knowledge.

As in some SWOT’s the fear of an unequal and unfair playing field in different countries and regions is

mentioned, an impetus on the harmonization of the rules might be given by further promoting the

evidence based methodology of analysis. The one-dimensional model of the linear innovation from

scientific research on to commercial application is far too simple: it misses the dynamic

interdependency of the complex system with many stake- and shareholders. The dynamic

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surrounding market transitions are driven by the cyclical interaction between new scientific insights

in changing behavior of consumer groups as well as industrial propositions of new product-service

combinations. Innovations are built on innovations. It is essential that the hard world of changing

technical capabilities is combined with the soft world of changing needs and concerns, leading to one

holistic system. The Cyclic Innovation Model (CIM) presents the processes in innovation by a circle of

change. Changes in science and industry, and changes in technology and markets are cyclically

connected. Nodes function as roundabouts, entrepreneurs generate the driving forces. A region may

be excellent in science, but it may underperform in innovation due to insufficient synergy between

science and industry. A society may be excellent in technology, but it may underperform in

innovation due to insufficient synergy between technical capabilities and consumer needs (see annex

1 Cyclic Innovation Model).

The direction is known

Broad agreement and commitment to the why-question: the long term perspective of a Low Carbon

Economy that combines energy and resource efficient operating practices with economic growth

(sustainable, competitive and inclusive). It must be remarked that most attractive and popular point

of view (especially for politicians) is that the road to a Low Carbon Economy is something that

everyone will gain on. Confronted with an unmanageable reality it must be realized that it is not an

easy journey to LCE. Ongoing monitoring and changing circumstances will lead to adjustments and

adaptations. The process management of that transition has to deal with uncertainties and risks. You

can’t buy a ticket to the low carbon economy at the railway station, yet.

3. Overview of the SWOT’s in the region

Hereafter a brief description is given of the SWOT of each region in the LoCaRe-project, executed at

the end of 2012 or the start of the year 2013. The methodology of the regional SWOT is described

and the most dominant features of Strengths, Weaknesses, Opportunities and Threats of that region.

The resume gives a brief analysis of the outcomes of the regional SWOT’s and shows the input of the

LoCaRe project for the next steps of that region’s strategy to the low carbon economy.

SWOT region Syddanmark

Methodology

Data were collected by way of telephone interviews with regional and local public sector stakeholders and with

representatives from the private sector. In addition a desktop study of analysis of mainly local and regional

strategy documents were carried out as well.

SWOT

Strength is found in the regional scale and role. Whereas the municipalities are actively working on the

implementation of projects towards LCE, the regional role is facilitating and framing and lending administrative

support. Regional leadership lies on the strategic level, in a lasting long term vision.

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As weakness in the region the lack of dissemination, sharing of knowledge is mentioned. The question arises

whether that is a major role for the region. There is a desire of working on a supra-municipal level (not

everyone likes always to start from scratch). The economic boundaries for activities on climate change are put

forward.

Opportunities: The regional scale is deemed fitting EU-funding schemes. The interregional cooperation

between Germany north and south Denmark in an Interreg IV A project gives new and promising challenges

and perspectives for continuation and deepening the low carbon solutions.

As threats are mentioned the necessity of external funding for activities on the long term: continuation of the

change to LCE is (still) dependent on the financial support. Also the uncertainty of fair and equal playing field

(same regulations, in EU, global...) is seen as a risk. Companies might move to other countries.

Conclusion regional SWOT:

The Region’s position in the Danish planning system provides both some strengths and weaknesses. The

Region’s position enables it to have the strategic overview and to act as a coordinator and facilitator on various

activities carried out by the municipalities, private or non-governmental actors related to a low carbon

economy. The Region’s position, economic scale and ability, and the political climate allow the Region to have

this role at present, however, with no legal mandate or competence. The Region thus needs to step carefully in

this regard and manage its role with great care.

The role as a coordinator and facilitator in relation to climate mitigation activities is a very important role for

the Region to play, because of the (possible) regional overview. This is something all the interviewed have

emphasised as well as they have expressed a need for the Region to be more active in this role.

Municipalities and other actors seem in fact to hope for the Region to have a more active strategic and

facilitating role than at present. The subproject coordinators ask for more collaboration, knowledge sharing,

inspiration seminars and overview of activities between the municipalities, and the private sector actors look

for longer term collaboration and political will.

The work becomes more or less voluntary for all parties. This can be a good basis for collaboration, but not

without commitment.

EU funding is a great help. Mid-term financing is thought to be essential for continuation of the joint effort to

LCE. European funds for the region are of great value.

The next step

A stronger and wider reaching politically accepted agenda on low carbon solutions is however necessary to

create more certainty as well as an economic climate in which a transition can take place. A ‘mini-Stern’ type of

review defining cost effective strategies to decarbonise the Southern Denmark Region may provide a first step

for a programmatic approach to Low Carbon Economy. The second step should be political negotiations at

local, regional and cross-border level, possibly realised through a mini-COP between Southern Denmark and

Schleswig-Holstein which mitigation aspirations are politically accepted and financially agreed to.

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SWOT Västra Götaland

Methodology

The ambition of Västra Götaland is to be a forerunner for LCE. The long term goal is to have in 2030 an energy

system without any fossil fuel. The chemical industry has decided to be fossil free by 2030. In Västra Götaland

an ongoing analysis of strengths and weaknesses in relation to opportunities and threats for a low carbon

economy is performed.

SWOT

A strong and solid basis lies in the common vision and long term goal (adopted 2009 by 80 actors from all parts

of society). There is a number of strategies, programs, project and processes where companies, academia and

politics, by themselves and in collaboration, focus on long term change for a more sustainable society. Areas

with great potentials are there where industry clusters already exists or can be developed relatively simply,

where knowledge - and the level of competence is high in the region, areas with big political commitments and

areas where collaboration activities has been startedAction programs are set up in cooperation with a broad

partnership. A common process between companies, academia and politics has formulated the focus in

development work on cluster development. The result is a strategy signed by the partners.

Based on an ongoing analysis, the focus changes, and the work broadens, followed by political decisions and on

budget allocations. A future program for action is characterized by challenge driven innovation: markets and

demand for solutions are not only decided by commercial forces but also by political decisions and public

commitments.

Not only on the technology push of resource efficiency, but the work on LCE is broadened and focuses more on

norms and values (market pull). The consumer perspective gets stronger and is complementary to the efforts

to develop and implement different kind of LC techniques and to build an infrastructure in society that makes it

possible for people and companies to act sustainable. Purchasing, information and education support for

demonstration and test arenas was mentioned especially. Large responsibility is given to the public sector in

implementing solutions and be a part of development work in test and demo arenas.

The next steps

New action plans have recently been decided on or will be decided on soon. Based on the lasting process, the

study resulted in a proposal on four areas suitable for further implementation. These four were: 1. Energy and

transport, 2. Biomass and bio energy, 3. Marine energy and 4. Sustainable Urban Development.

These are all areas where Västra Götaland has strong industrial structure, international successful research and

competence development, political commitment, networks and collaboration projects. With reference to the

area biomass and bio-energy there is the need to focus on resource effectiveness and not convert the biomass

to CO2 (to burn) before it has been used in other areas (cascade use). The area Sustainable Urban

Development meets several of the formulated criteria. Active companies, research - and development work is

present, as well as a strong public commitment. Attention has to be given to the co-ordination and the number

of actors and questions covered. The area is big in an international context. Many other towns, regions and

research operators aspire on being proficient in this area; Västra Götaland does not stand out. The question is

though important when we consider the challenges in the region to 2030 like construction and reconstruction

of buildings and integration and intercultural development.

During 2013 a new Strategy for the overall development of Västra Götaland – VÄSTRA GÖTALAND 2020 - will

be decided on. The proposal has a strong focus on Sustainable Development in general and on a Low Carbon

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Economy in particular. The consumer perspective is stronger and complements the efforts to develop and

implement different kind of LC techniques and to build an infrastructure in society that makes it possible for

people and companies to act sustainable. Consumption patterns and people's attitudes to energy adaptation

are perhaps the individual most important aspect in the possibility to reach the vision about a fossil fuel free

region. Of course, economic incentives are required, but although the technology in many contexts requires

development, many of the necessary solutions are present. Knowledge and understanding about the

possibilities that exists should be increased. A better understanding about the society that we do want in the

future is a necessity.

Recommendations are made about how the work can be organized and which future investments should be

seen as most important. Program activity linked to the four clusters is complemented with four aspects that

run horizontally through the clusters: innovation, behaviour, systems research and financing. The four

”horizontal aspects” are suggested to complement the program activity through focus on challenge driven

innovation, “change agents” that disseminate knowledge about future possibilities, research on systems level

where knowledge about effects of the surrounding world's change on our region should be taken forward and

last but not least on the establishment of a financing platform for implementation.

SWOT Zeeland

Methodology:

A group of 15 representatives of the Triple Helix (companies, science institutes and authorities) was invited for

a meeting to identify the SWOT’s of LCE in the region of Zeeland. In a second meeting with the shareholders

the most promising business cases were formulated and agreed on.

Strengths, weaknesses, opportunities and threats

The scale of the region, small and manageable, neatly arranged and well-organized is called strength. Many

linking options and fast switching with short lines combined with a great willingness to cooperation are

available. The local management of the big international companies is committed to energy and resource

efficient operation and ready to make the necessary investments. The renewable energy sources are in

(relatively) large amounts available (wind, sun, water and biomass).

The scale of the region was also considered to be a weakness. The population density is low and ageing fast.

The region has a rather small home market. For instance there is an excess on waste heat and only a (too)

small demand. The regional authority has only limited financial and legislative resources.

As opportunity was mentioned the neighborhood of Flanders with its innovative industrial zone and science

parks. The regional authorities seem to be the obvious level to take initiatives for cross-border cooperation and

EU financial funding for the projects towards LCE. Energy from water was seen as promising and R&D should be

intensified.

The financial and economic crisis was thought to be a weakness, a risk for the necessary continuation of

sustainable projects and investments for the shortage of money. Government and politicians were reproached

with their short term policy just where the goal of LCE needs long term vision and endurance.

In the second meeting more than 10 working packages were formulated. The prioritizing was done in a

multiple factor analysis and also agreed upon with the stakeholders.

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The next step

As an advice for the next Strategic Plan on Energy (as part of the Economic Agenda 2013 -2017) 5 most

promising business cases were recommended: Energy in built environment (energy saving and waste heat),

Renewable energy from wind off shore, Energy in big industrial plants (energy saving and waste heat),

Renewable energy from biomass large scale and Energy from water. Before summer 2013 the regional

government has to decide on these working packages.

SWOT Gorenjska

Methodology

A survey of the regions qualities and circumstances was given by the local partner.

SWOT

As strength of the region was mentioned growing awareness of possibilities of RES and energy efficiency, as

well in private as in public sector. A good atmosphere for further empowerment of inhabitants, SME (regional

info point, LEAG) was put forward. In the region there is a good usage of regional sources (wood, water, sun).

The local commitment is shown in local strategies. The presence of some good specialized producers and

service providers with substantial knowledge of RES, energy efficiency technologies is a solid basis for

innovations and further development of LCE and marketing also in foreign markets. The existing cooperation

with foreign markets (in development and marketing) is an advantage.

As weaknesses on the road to LCE were listed the lack of money and the lack of legislative power of the region.

So far the modest financial support for innovation and new technologies in RES, energy efficiency (especially

for individual endeavors of SME-s) were obstacles in the process. There are too little possibilities at the regional

and local level to speed up the investment and innovation processes (lack of funds, bureaucratic institutions

and content issues). Also a lack of knowledge was mentioned: e.g. too little understanding of carbon capture

and carbon storage and too little knowledge of other possibilities of RES and energy efficiency.

As opportunity were brought forward the growing inclusion of private and public entities in EU development

endeavors towards LCE. The national strategy in RES 2014-2020 is being prepared and local communities have

local development programs in RES and energy efficiency. In this way the involvement of regional key players in

EU strategic green projects is guaranteed. Furthermore the SME’s are in a good competitive position to further

develop green technologies and services as niche products. There is great willingness to further connect these

SME’s and research, to develop specific knowledge (via centers of excellency) and other support measures

(e.g. new educational programs, funds for specific research and innovation in companies) in finding and

applying green technologies and services. Also the emerging economy and the good connection of economy

with foreign markets (EU, Balkan, Russia,...) is thought to be a chance for economic growth.

The financial and economic crisis was called a major threat to the necessary initiatives and investments

towards the low carbon economy. The public revenues will be shrinking further and priority for support at the

national level will probably be given to other strategic topics (e.g. employment and public spending). For

regional and local communities there will be not enough means to contribute to reduction of CO2 with RES en

energy efficient investments). Even strategy papers already decided will not be brought to reality when their

funds would be transferred to other strategic topics. Also the lack of knowledge is put forward as a factor that

might have a negative effect on the public support. The unpredictable and uncertain changes of prices of

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energy on EU and world markets and non-predictable changes in climate (less snow, rapid changes of

temperatures,...) were seen as obstacles for further implementation of LCE in the region.

The next step

As coming strategy and action a regional sustainable plan with a list of actions and projects is foreseen. In that

framework support will be gained by lobbying at national level for key regional goals and projects. On the key

areas towards LCE (as energy efficiency and renewables, transport and emissions) the responsibility and the

competences of the national government is essential.

SWOT Emilia-Romagna

Methodology:

The SWOT analysis was used as a tool to summarize the results coming from the predecessor of SEA study

(Strategic Environmental Assessment – SEA Directive). It helped to highlight internal and external factors

connected with the program actions. Through the creation of a series of meetings, the participatory process

was conducted in two main modes: the first mode was oriented to knowledge and the definition of themes.

The second mode participation and dialogue through the creation of round tables (so-called agora) with

structured debate dedicated to relevant themes. The impact factors identified by the Environmental Report

(preliminary to the SEA) are those referred to ENERGY, AIR and CLIMATE.

SWOT

As strength of the region was identified the availability of the large group of entrepreneurs ready to face

problems linked to the reorganization of energy systems. Presence of several strong economic quality leading

sectors was a good ground for innovation. Also the scale of available regional information systems and

environmental accounting tools was a support for policies for preventing climate change.

The lower increase of local energy efficiency in comparison to other regions and energy strength higher than

Italy was listed as threat. Furthermore the region has a high per capita electric energy consumption and high

energy consumption per land unit. Gas carbon emissions in Emilia Romagna region are growing. There are

increasing energy consumptions and growing reliance on import non-renewable energy sources. Use of

renewable energy sources limited and lower than the foreseen targets. The position of weak economic sectors

(oil refineries; chemical sector; ceramic sector) has to be improved.

As opportunities were mentioned the significant availability of some renewable energy sources (biomass;

hydroelectric basins; solar radiation; wind load off-shore) and the increasing European stimulus in the biomass

energy supply chain (biomass from forests; wood and bio-fuels). New European, National and regional policies

for reduction of gas carbon emissions offer several opportunities of eco-efficient technologies and eco-

incentives.

The progressive depletion of local natural gas fields and the risk of pollution from hydrocarbon mining were

mentioned as threats to the durable development of the region. The high impact of energy costs from external

and unpredictable global markets have a negative effect on the regional economy.

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The next step

The report provisionally concludes at this stage that using the Strategic Environmental Assessment, mandatory

for every programme, as a summary for the LCE positive and negative factors, is coherent with the tool for the

SWOT Analysis as proposed in the LoCaRe project. The main goal of the regional policies is the (sustainable)

development of the economic system. A real value will be added if these low carbon principles are included

inside 'every' economy development plan. Even better if these tools are built up by means of a participatory

process in order to formulate regional policies and taking into account the opinions and cooperation of the

regional stakeholder as much as possible. Next steps could be to complete the view at sub-regional level by

interviewing the Italian subproject participants as a representative sample of their stakeholder categories and

to execute the same process applied here in LoCaRe to other general and specific regional programs.

4. Resume

Although the methods of the regional SWOT’s differ substantially, a bird’s eye view on these regional

analyses shows a definite agreement of thoughts in the LoCaRe regions. The objectives for regions to

promote a low carbon economy are uniform in all regions: innovated and competitive economy,

better environment and a higher quality of life for the citizens. Combining the reduction of CO2

emissions in an energy and resource efficient economy with sustainable green growth is an inspiring

vision for the regions. Local production of sustainable energy and energy savings benefit local

employment and economy. Smart technological innovations will contribute to a competitive

economy in a global market.

The road to low carbon solutions starts from the strengths of the regions: a growing public

awareness of the necessity and profits of renewable energy and feedstock, the possibilities of energy

from regional renewable sources, commitment of companies and citizens and the broad political

agreement on an innovative and sustainable economy. The regions are the proper scale and the

physical space in which the European and national policies and actions are to be implemented. There

work and live the citizens and companies that have to make the transition. In regional networks and

collaboration projects the overall objectives can be reached and at the same time promote the local

and regional ideas and measures that they could decide on regionally and locally.

When listing difficulties towards a low carbon economy the regions mention roughly three

shortcomings: lack of knowledge, lack of investment means and lack of commitment. The region’s

position provides strengths and weaknesses at the same time. The region’s scale and function makes

it possible to have the strategic overview and to act as a coordinator and facilitator on various

activities carried out by the municipalities, private or non-governmental actor. However, the regions

have no (or not enough) legislative and financial means to impose the low carbon economy and thus

needs to manage its role in the transition arena with great care. Partners want the region to play a

more active role; especially on the dissemination of knowledge and experiences.

On the road to low carbon economy the regions are very much helped by the EU policy and funding

schemes. All the regions think this financial support of vital value for the continuation and deepening

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of the work in the regions for LCE. The regional authorities seem to be the obvious level to take

initiatives for cross-border cooperation and EU financial funding for these projects.

The uncertainty of the global agreements on energy and climate policy is a large threat for the

continuation of the low carbon programs in the regions. Long term consistence is absolutely

necessary for the combined efforts of companies, authorities and citizens to reach the low carbon

economy. Also the financial and economic crisis has a negative impact on the feasibility of programs

and action plans. On the other hand it must be noticed that in some regions with a longer tradition in

the energy and resource transition the plans and activities withstand the fluctuations in the economy

and financial world. The work on LCE is broadened and focuses more on norms and values (‘market

pull). The consumer perspective gets stronger and is complementary to the efforts to develop ‘low

carbon technological innovations. In this way the ‘hard’ world of changing technical capabilities is

combined with the ‘soft’ world of changing needs and concerns of people. In the subproject on Local

Commitment interesting links to this theme were brought to the fore. This integrative approach aims

to build an infrastructure in society that makes it possible for people and companies to produce and

consume sustainably.

The notion is growing that in order to make progress on the complex and long lasting road to low

carbon economy it needs more to raise awareness and commitment than just excellent arguments, a

slick brochure or a well-organized meeting for participants. The transition to LCE is so much more

than technology. What it needs besides the technical innovation is a social innovation that addresses

changing societal values. In his book ‘Redirect; the surprising new science of psychological change’ 1

Professor Timothy Wilson is illustrating this vision with inspiring cases.

The next steps in the regions

All the regions use their experiences and the results in the LoCaRe project to give solid ground to

the new strategic plans or action programs in the field of energy and climate that are to be

decided on soon. There is a tendency in all regions to broaden the low carbon approach to other

domains and to more general strategic policy areas.

In the report Analysis on New Energy (2011) a study on the regional SWOT analyses is described. It is

remarkable how similar the findings of those analyses are with the results of these recent regional

SWOT’s. One might say that the regions did not get off-course on their voyage to the low carbon

economy. The regional cooperation of companies, authorities and citizens has stand up against the

fluctuations of economy and volatile markets. The vision of a sustainable future with an innovated

and competitive economy combined with the decrease of carbon usage and emissions is a sound and

solid basis in the regions.

1. Timothy D. Wilson, Redirect: The Surprising New Science of Psychological Change. Little, Brown and Company, 2011

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7. Conclusions

As this report has demonstrated, the LoCaRe-project has many lessons to offer other regions and

local areas seeking to begin or expand their low carbon transition.

Working together in the LoCare-project has been an instructive experience for the regions. During

the project a lot of the differences were found between the regions in terms of legislation and

competencies that make a huge difference when moving forward towards a Low Carbon Economy

and in terms of cultural differences that have brought about challenges for having a common

framework for process and outcome of meetings and events. The grown and shown understandings

of these differences certainly have contributed to the cohesion in the project and between the

regions, thus meeting one of the main goals of the EU program.

Based on their own circumstances and resources the regions are in a different phase in the transition

to a low carbon economy. The regions had to find their own appropriate step on the road to LCE.

The roadmap of the EU is a very useful guide, not only for the member states on the national level,

but especially for regional governments as the single most important leading goal for the long term.

This roadmap and the underlying report on the economic feasibility are very useful in the political

and societal debate in the Regions. With that focus point on the horizon each Region has to find its

own way.

The LoCaRe-project has shown that in the starting phase of the transition to energy and resource

efficient economy the approach of the technology push is very successful. By introducing proven

technologies in energy savings and the production of renewable energy substantial steps can be

made. At the same time these low carbon solutions will reduce CO2 emission and promote the

regional employment by green growth. The sub-project BIOMAP has developed and implemented a

web-market tool for biomass waste streams, thus turning an environmental problem of agricultural

waste, industrial by-products or manure into a green economy business opportunity (energy

production, but also organic fertilization and cradle-to-cradle processes). It has improved renewable

energy production by promoting its social and environmental value. These win- wins by picking the

low hanging fruits will enlarge the support for further and tougher trajectories. In the case of

biomass the principle is now recognized that there is the need to focus on resource effectiveness and

not convert the biomass to CO2 (to burn) before it has been used in other areas (as green chemistry)

in the ‘cascade’ use.

The transition path is very broad and spreads over very different areas of solutions. The LoCaRe-

project has emphasized the importance of involving the public in the further Regions’ steps toward a

low carbon society. Some Regions have a longer tradition of collaboration and consensus building

within the political and economic system as well as the advantage as an early mover within

renewable and efficient energy technologies. They are facing other questions on their road. Citizen

participation will be vital for a successful transition. The Regions with a longer history in the search

for a sustainable society are now putting effort in the demand side of the economic chain by

connecting other fields as education and consumer behaviour; they are promoting the transition by

the use of the demand pull. Their view is no longer a one dimensional chain that starts from new

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scientific knowledge and ends with new consumer products. Their broadened strategy is based on a

complex multidimensional cyclic innovation model that combines ‘hard’ technological inventions

with ‘soft’ social innovations of culture and values. Low carbon behaviour should no longer be a

vision, but an internalized societal value.

The research report New Leadership on the prime driving forces for the main actors – consumers,

companies and politicians - in the regional efforts for a low carbon economy in EU today has

recommended that sustainability should be at the top of the political agenda. Clear communication is

needed to keep pressure and influence norms and habits. Strategies need to be more oriented

towards sustainable consumption. Communication must be well motivated and followed by visible

action to give the consumers of goods and services the sustainable choice.

As the energy and resource efficient transitions approaches maturity, the phase it can stand on its

own feet, attention should turn to evaluating the depth of cluster links and infrastructure, and

ensuring that new knowledge, people and firms are brought into the cluster. This will avoid

knowledge stagnation and lock-in, where clusters become inward rather than outward looking, and

static rather than dynamic.

Green growth should be conceived as a strategic complement to existing environmental and

economic policy reform priorities. If the Regions want to green the growth paths of their economies,

they need to treat the policy challenges as being ones that go to the core of their economic

strategies. Strategies for green growth need a long-term vision that will endure in the volatile

movements of economic and financial markets.

There may be a moment when the choice has to be made to foster ‘disruptive’ innovation, to

implement radical green innovations that will replace ‘outdated’ activities. It is recommended to

strengthen cross-sector linkages to connect insiders and experts with outsiders and interested

people with other competences: innovations cannot be done without new surprising views, without

‘thinking out of the box’. On the road to low carbon economies in the Regions the cooperation of

many, not to say all partners is necessary.

In that complex arena of different stakeholders the role of the Region is important. The leadership of

the Region is most effective in an equivalent and facilitating mode: ready to involve partners, to

listen to the stakeholders and willing within to adapt schemes, instruments and even operational

goals as long as the joint agreement leads to the long term goal of a low carbon economy. The social

and economic benefits to the community of maintaining investment in these activities needs

constantly to be brought to the fore. The links with ensuring growth of the quality of the regions

must be underlined, so citizens and investors have a common interest in success. The Regions have

an important role in the transition to a Low Carbon Economy.

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8. APPENDIX

1. Cyclic Innovation Model

©A.J. Berkhout

1

CYCLIC INNOVATION MODEL (C IM)

Innovation is more than just a technical invention: economic, social and cultural aspects are often decisive. It is the symbiosis of these components that will determine what is a true innovation.

L imi tat ions of current innovat ion models

Traditionally, innovation models are linear (explicit or implicit). They describe the processes along the innovation path as a causal sequence (much like in relay): investments in scientific research must lead to

application-oriented development routes that subsequently ought to result in successful market introductions. If we invest enough in science and technology the rest will work out all right, that is often the

reasoning1. Such a linear science-push approach in innovation policies is still taking place on a large scale, with the result that most innovation systems underperform. The limitations of current innovation models can

be summarized as follows:

! Most models show innovation paths, representing a stage-gate type of activity and controlling the

progress from idea to market introduction, rather than giving insight in the dynamic properties of the innovation processes themselves;

! Science is viewed primarily as technology orientated (natural and life sciences) and R&D is closely

linked to manufacturing, causing insufficient attention to the social and behavioral sciences. As a

consequence, the emotional (or soft) components of innovation – being responsible for many failures – are hardly addressed;

! The complex interactions between new technological capabilities and emerging markets are a vital part of the innovation process, but they are underexposed in current models;

! The role of the entrepreneur (individual or team) is not captured.

Everyth ing around us is changing, innovat ion processes need to change as wel l

In almost every natural system, feedback is an essential phenomenon. This means that there exists a path

that carries part of the output back to the input. Mathematically, this phenomenon is described by an integral equation of the second kind. In ecological systems we find an abundance of feedback paths. That

makes them very complex and, therefore, human interference often has unexpected consequences which we do not understand. Think of the complex human interaction with the earth’s natural system and the

related debate on climate change. Another example is on micro scale, where we observe that the living cell – considered to be the most advanced chemical factory – is full of feedback (see Figure 1). Molecular

biologists believe that nature aims at minimum-energy systems and that minimum energy requires many

1 The innovation policy in the European Union aims at R&D budgets of the member states that amount to at

least 3% of their GNP.

©A.J. Berkhout 2

feedback paths. If this is the case, we must conclude that our current models, being characterized by little

feedback, are squandering a lot of energy. This also applies to innovation models. Innovation processes should not be forced into simple one-way pipelines, but rather be organized by interconnected cycles with

feed forward and feedback connections: from linear to nonlinear thinking. In that way, a dynamic network environment is created in which the soft sciences are linked to engineering, and where the hard sciences

connect with market goals (Berkhout, 2000). This is what is captured in the proposed innovation framework. Supported by today’s powerful communication technology, serial process management along a

linear path is replaced by parallel networking along a largely self-organizing circle. Vital decisions in innovation do not occur in the gates of a staged project management pipeline, but do occur at the process

floor itself. Or, in terms of the proposed model, at the nodes of the cyclic networks. It is our experience that young people like to work in such an environment.

Figure 1: The human cell is one of the most impressive examples of intelligence by feedback.

In the following we will introduce the concept of the cyclic innovation, showing the model of a high-

information, low-energy innovation system.

Double dynamics around technolog ica l change

Figure 2 shows two linked cycles, forming a double loop with technological change in a central position. The

cyclic interaction processes for the development of new technologies take place in the hard sciences cycle (left-hand side of Figure 2) with the help of a wide range of disciplines from the natural and life sciences.

Technological change in this cycle is a cross-disciplinary activity: a team of scientists from different disciplines of the hard sciences is needed to develop a new technological ability (many-to-one

relationship). In the last decades, we have seen that industrial firms have outsourced a large part of their science-based technological research to universities. Note that in Figure 2 the hard sciences deal with

quantitative models that not only explain the properties of physical systems (‘know-why’), but are

©A.J. Berkhout 3

increasingly capable of predicting their behavior as well. This predictability allows us to develop reliable

technology with fully repeatable behavior (‘know-how’).

Figure 2: The dynamics surrounding technological change are driven by the cyclical interaction between new discoveries in the hard sciences (left-hand side) as well as technical specifications for new product combinations (right-hand side).

Similarly, the cyclical interaction processes for the development of new products take place in the integrated engineering cycle (right-hand side of Figure 2). Modern product development is a cross-

technology process in which a package of different (often patented) technological abilities is needed to design and prototype a new product (many-to-one relationship). As in cross-disciplinary science, here too

we see that many different experts are needed to succeed. Nowadays, we observe that in most industrial firms specialized skills of technical suppliers from outside the firm play an important role in making the

engineering process successful. This is consistent with the open innovation concept (Chesbrough, 2003). Note that ‘products’ refer to everything mankind builds: not only tangible products like houses, cars and

computers, but also non-tangible products like websites, games, insurance policies, agreements, rules and laws. And combinations thereof. This means that engineering should integrate hard and soft components.

Figure 2 visualizes that in the hard (natural & life) sciences cycle, technological change is driven by new scientific insights: science push. It also shows that in the engineering cycle technological change is driven

by new functional requirements in product development: function pull. The dynamics in technological change are therefore driven by new scientific insights as well as new product specifications. In a dynamic

technological infrastructure, scientists and engineers must constantly inspire each other. To achieve this, research must be organized in a different manner: no barriers between the two cycles. In Figure 2, the

technological node should function as a knowledge-driven roundabout.

Double dynamics around market t rans i t ions

Figure 3 also shows two linked cycles. In this case it is the world of market change rather than the world of

technological change that plays the central role. The cyclical interaction processes for the development of new insights into emerging changes in demand – causing rising and falling markets – take place in the soft

sciences cycle (left-hand side of Figure 3) with the help of a wide range of different disciplines from the behavioral and social sciences. With these insights, new socio-technical solutions can be developed faster

and with less economic risk. Understanding changes in demand is very much a cross-disciplinary activity: a team of disciplinary experts from the soft sciences is needed to assess and foresight shifts in societal

©A.J. Berkhout 4

needs and emotions as well as changes in trade conditions and regulations (many-to-one relationship). We

see in all industrial sectors an increasing interest for this type of research, meaning a shift toward a more scientific approach to market intelligence. Note that in Figure 3 the soft sciences deal with socio-economic

models to explain the properties of markets and the underlying behavior of consumers. Until today, the predictive power of these models needs improvement.

Figure 3: The dynamic surrounding market transitions are driven by the cyclical interaction between new scientific insights in changing behavior of consumer groups (left-hand side) as well as industrial propositions of new product-service combinations (right-hand side).

Likewise, the cyclic interaction processes required to serve the changing society with new product-service

combinations take place in the differentiated services cycle (right-hand side of Figure 3). In this cycle,

services are seen as an invaluable link between products and markets: the combination of products and services determines customer value. Users play an increasing role in making the innovation process

successful: product development 2.0. Utilizing the creative input of customers is known as democratizing innovation (Von Hippel, 2005). It is interesting to note that in recent years the services sector has

expanded considerably, not only because of the greater demand for services from the end-user but also because industry has outsourced many of its non-core processes. This trend is still going on, and will play

an indispensable role in the forthcoming cleantech era.

Combin ing two d i f ferent wolrds

If we compare Figures 2 and 3, the dual nature of scientific exploration and product development becomes

clear: science has both hard and soft aspects, and product development has both technical and social aspects (Figure 4). In innovation it is essential that these aspects are integrated early in the process. This

is exactly what is proposed in the Cyclic Innovation Model (Berkhout, 2000; Berkhout et al, 2007). CIM provides a cross-disciplinary view of change processes (and their interactions) as they take place in an

open innovation arena (see Figure 5). Behavioral sciences and engineering as well as natural sciences and markets are brought together in a coherent system of synergetic processes with four principal nodes that

function as roundabouts. The combination of the involved changes leads to a wealth of business opportunities. Here, entrepreneurship plays a central role: making use of those opportunities. The message

is that without the drive of entrepreneurs there is no innovation, without innovation there is no new business, and without a new business there if no economic growth. Figure 5 shows that the combination of

change and entrepreneurship is at the basis of new business.

©A.J. Berkhout 5

Figure 4: In innovation it is essential that the hard world of changing technical capabilities is combined with the soft world of changing needs and concerns, leading to one holistic system.

The most important feature of Figure 5 is that the model architecture is not a chain but a circle: innovations build on innovations. Ideas create new concepts, successes create new challenges, and failures create new

insights. Note that new ideas may start anywhere in the circle, causing a wave that propagates clockwise and anti-clockwise through the circle. In an innovative society partnerships are abundant and the speed of

propagation along the circle is high, resulting in minimum travel time along the innovation path. Today, time is a crucial factor in innovation.

Figure 5: The Cyclic Innovation Model (CIM) presents the processes in innovation by a circle of change. Changes in science (left) and industry (right), and changes in technology (top) and markets (bottom) are cyclically connected. Nodes function as roundabouts, entrepreneurs generate the driving forces.

©A.J. Berkhout

6

Figure 5 also shows that the proposed innovation model portrays a system of dynamic processes – circle

of change – with four “nodes of change”: scientific research, technological change, product development, and market transitions. But more importantly, between these nodes there are “cycles of change” by which

the dynamic processes in the nodes influence each other. In other words, they inspire, correct, and supplement each other (first-order dependency). This produces a system of linked cycles, which in turn

also influence each other (higher-order dependencies). The result is a more or less synchronized regime of highly non-linear dynamic processes that spark a creative interaction between changes in science (left-

hand side) and industry (right-hand side), and between changes in technology (top) and market (bottom). These are the dynamics referred to by Richard Florida (2005). Note that in this type of self-organizing

complexity, causality is not a meaningful concept anymore. Borrowing an observation from the famous Austrian physicist Wolfgang Pauli (Donati, 2004), many processes interact and we can no longer

distinguish between cause and effect. Innovation resides in the world of self-organized chaos, steered by the ambitions of the entrepreneurs. At a lower level, CIM reveals that each cycle consists of a network with

a high degree of self-organisation.

Autonomous societal transitions manifest themselves in markets as changes in the need for products and services (the demand). Think of the huge influence of education and emancipation on a society. On the

other hand, autonomous technological changes generate new products and services (the supply). Think of the huge influence of mobile and web-based communication technology on society. It is the cyclic

interaction of both autonomous innovation drivers, social and technical, that will create new business with a

high value for society. In that respect, specialized versions of the proposed model can be formulated, depending on which values we particularly aim for. For instance, if we would like to emphasize changes in

today’s energy system – aiming at a decentralized green alternative – then “market transitions” should be replaced by “energy transitions” in Figure 5. Similarly, if we would like to emphasize changes in the global

ecological system – aiming at maintaining biological diversity on our planet – then “market transitions” should be replaced by “ecological transitions”. For the coming decades, quality of life will become one of

the biggest drivers in innovation worldwide. This means that the transition node in the cyclic process model should be focused on the changing values in society at large: “societal transitions”.

Figure 5 shows that the left-hand side of the innovation circle is directed to research activities of the

science community while the right-hand side addresses the innovation activities of the business community. In a productive innovation system, science and business will challenge each other continuously on

technology-related (upper part) and market-related (lower part) issues. The transformation to a sustainable society may be the biggest challenge mankind is facing. It requires changes in technology as

well as in behavior. The hard and soft sciences should work together with industry leaders to make this transformation happen. In terms of CIM, moving to a sustainable society requires synergy of activities

around the entire innovation circle. The question is: who will be the system master?

System errors

From the above it follows that the innovation circle acts as a socio-technical framework that gives insight

into the heart of the innovation process by asking the relevant questions, such as: What needs to be done

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where? Who are the collaborating parties? Where are they active in the circle? Is there a balance in

investments between the different parts of the circle? Nobel laureate Robert Lucas points out that exchange of ideas is the principal driver for innovation (Lucas, 1988). So, in terms of the innovation circle

(Figure 5), the key question is whether there exists sufficient interaction around the circle. Particularly, for disruptive innovations an environment must be created where a large diversity of people with a broad

range of backgrounds can freely interact, discuss ideas, and exchange information. This type of environment requires a significant change in the current institutional and social structures, as disciplinary

boundaries are deeply rooted in our organizations and solutions are often a collection of isolated optimizations.

Despite living in an interconnected world, the barriers to creating new business by innovation remain.

Figures 6a, b can be used to indicate two possible obstacles in today’s innovation practice. First, The scientific research may be excellent, but lack of interaction with the industry will lead to a situation that

results are not translated into business applications (in time). Here, science and industry have separate agendas (Figure 6a). Second, a company or industry or society that may excel in designing and building

technical solutions, but it may still underperform because of a lack of interaction between the technical and consumer communities. Technology push can only succeed when connected to (emerging) consumer needs

(Figure 6b).

Figure 6: A society may be excellent in science, but it may underperform in innovation due to insufficient synergy between science and industry (left-hand picture). A society may be excellent in technology, but it may underperform in innovation due to insufficient synergy between technical capabilities and consumer needs (right-hand picture).

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Synergetic alliances and complementary partnerships will empower the innovation processes along the

innovation circle far beyond what we see today. I expect that we will move to a symbiotic society.

Conc lus ions

Innovation projects must not be managed along the familiar linear pipeline but should be organized via cross-disciplinary networks along an innovation circle with ample internal feedback paths. Innovation may

start anywhere on the circle and previous innovations will inspire new ones: innovations build on innovations. In such an organized chaos, causality is a meaningless concept and modern communication

tools are indispensable. Experience shows that in innovation a shared mental framework is essential to allow synergy between the large number of highly diverse players. The Cyclic Innovation Model (CIM) is

such a framework, being proposed to transform our current economy to a circular system: the circular

economy.