Welcome address by Commissioner Busquin Industrial Research and Sustainable Development Technologies for the paper industry Media briefing, Brussels 6 July 2001 Introduction It is my pleasure to open today the press conference on 'Sustainable industrial production', where some European research projects relating to the paper industry will be presented. * As you know, the strategic objectives set out by the European Council over the last twelve months, and especially at the Stockholm and Gφteborg Councils, have highlighted two particular challenges that face our society and, consequently, European industry: – maintaining competitiveness and – supporting sustainable development. * In order to meet these needs, one of the main objectives is to develop and disseminate technologies, materials and production systems of a high quality and with a high added value. * It is a fact that in the years to come, even though the new economy and electronic commerce are playing an increasingly important role, the processing industries, employing approximately 40 million people, will still be of vital strategic importance for Europe in terms of wealth creation, environment and employment. In order to remain competitive, European industry needs to speed up the move from traditional production to high-tech production. * In this connection, the management of knowledge and the skills and motivation of the workforce have become key factors in competitiveness for all types of businesses. * A recent study of 500 European businesses which have created 112.000 jobs in the space of four years, has concluded that innovation is the main factor in their growth. Nevertheless, it is a fact that innovation by European businesses is inadequate. The level of investment in scientific research is insufficient. * The low level of investment in research in Europe is demonstrated by the following: in Europe only 1.9% of GDP is invested in research compared with 2.6% and 2.9% respectively in the United States and Japan. This then is a specific challenge which we have to meet, but it is not the only one...Towards sustainable development and a better quality of life... * The projects which will be presented today give an example of how the European Commission already responds with a strategy of sustainable development, as reaffirmed by the recent Gφteborg European Council. This strategy aims to bring all relevant EU policies into line with the three aspects of sustainable development, i.e.: economic growth, social cohesion and environmental protection. * For its part, the Belgian Presidency has also given an initial boost to the implementation of this strategy by paying particular attention to the integration of the environmental dimension and sustainable development in EU policies. The prevention and sustainable management of waste, energy taxes and green taxes in general and limits on the use of dangerous substances must also be examined. The role of industrial research? * Just as industry is the motor of the economy- and without it there would be no growth or sustainable development - innovation and research are absolutely vital in reconciling economic growth and the various criteria for sustainable development. * This press conference is then the first in a series of four organised by the Commission to show how the research actions that it funds foster both sustainable development and the competitiveness of European businesses. The example of research on the paper technologies * It is a feature of the paper industry that it uses renewable resources, that it uses those resources to the full, and that it covers the entire value chain from its beginning in the forest, right up to recycling. * The European paper industry, with more than 1000 factories, a turnover of more than €400 billion and generating directly or indirectly around 4 million jobs, has therefore been able to maintain or even improve its position in a very competitive world market thanks to its research actions, a) by modernising itself through the combined effects of improved industrial capacity and basic knowledge; b) by improving overall quality in the value chain, reducing inefficiency and overall costs; c) by minimising the production of waste, use of dangerous substances and consumption of resources. * The result is that this industry now produces virtually no pollution and recycles more than 50% of its products. The three projects which will be presented to you are an example of this. * The first project, a CRAFT project, involves eight SMEs from four European countries. It deals with a new pulp treatment process optimising the use of water (that is to say a reduction of 50% in water consumption), energy and chemicals and generating no liquid pollution. * The ECOTISSUE project, for its part, covers the treatment of cellulose fibres to improve the bio-compatibility of paper when in contact with the skin, a treatment which also optimises the use of water, energy and chemical products. In most cases emissions will be reduced to zero. * The third project presented, PAPER KIDNEY, tackles the problem of water recycling, with the added aim of improving paper quality, reducing the use of chemical products and cutting waste as well as energy consumption - 50% to 80% reduction is anticipated. This afternoon's visit to the VPK paper mill in Termonde (Dendermonde-Oudegem) will give you the opportunity to see the innovative systems developed within the framework of European research. Since 1989 the Community has contributed 130 million € towards research in the paper sector, corresponding to about a hundred projects. Some 30 of these projects are either still in progress or about to start. The move towards a new Framework Programme * I take this opportunity to point out that striving for sustainable development is a major objective of the Union. With more than 17 billion Euro funding, the research actions which will emerge from the next Framework Programme and the establishment of the European Research Area will, of course, have to meet this objective. * Against this background, what should be the role of European research? First of all to structure research efforts... – Community research policy should act as a lever, a catalyst, especially as it represents only 5% of the total amount of European research funding. It should enable projects to reach a critical mass in areas in which the Member States' efforts are not enough on their own. * Then encourage the integration of research efforts... – The future of European industry cannot be prepared without an overall vision, hence the importance of European scientific and technical cooperation. Such cooperation is now essential for the development of a high-tech industry in Europe. Today's industrial research projects involve on average 10 participants compared to an average of 5 ten years ago. * Lastly, step up research activities at European level... – The public sector should aim to encourage private investment. This should be based on strong links between research and industry, especially as European has fewer researchers in industry than its competitors (2.5 per 1000 employees compared with over 6 per 1000 in the United States and Japan); – Finally, the research funded by the Union should back up Community policies (for example, control and prevention of pollution, European eco-label, establishment of a legal, regulatory and financial framework favourable to innovation). * The move towards a new form of research project, the integrated projects, is linked to these objectives. Whereas a few years it was only research which the Commission funded, the next Framework Programme will see integrated projects complementing research with demonstration activities, transfer of technologies, training or the coordination of resources in order to encourage revolutionary technologies and generate substantial innovation. These projects could attain a critical mass of several million or even tens of million of Euros. * Networking is also an area in which significant results can be achieved at Community rather than national level. I therefore insist that the emphasis should be on networks of excellence. The ultimate objective is to use these networks to structure the European Research Area, to help researchers to develop and industry to validate the new know-how required for the future of our society. Industrial research for an ever-changing world... * The world and the needs of its inhabitants have changed dramatically in the last ten years: – Increased globalisation and competition, – Emergence of the information society, – Requirements for a better quality of life, – Support needed for sustainable development, – Ethical and social consequences of technological change, – Need for higher skilled human resources and jobs, etc. * Industry must be encouraged to invest in ambitious research projects. These projects must have a sufficient critical mass, optimising the whole of the life-cycle chain. * The Commission has proposed a budget of €1300 million for large projects in the field of "nanotechnologies, intelligent materials and new manufacturing processes", to which will be added some €500 million for SME-related activities. This is a significant increase over past amounts. * Ladies and Gentlemen, my last point is this: the new Framework Programme represents a break with the past. It is different from its predecessors in at least two ways: – First of all, in its general approach which is designed to respond to the needs of structuring and strengthening of the European research area and innovation. This will of course benefit European industry... – Secondly, in its new instruments designed to concentrate and integrate research efforts on priorities selected for their economic and social relevance including support for sustainable development. A common will is needed for this action to succeed and I hope that all of us here today will work towards that end. 1