Bit II. Bioeconomy in Italy. A new Bioeconomy strategy for a sustainable Italy

1. Agrifood ket needs is required through the sharing of challenges

2. Forestry and experiences implemented at global, European, na-

3. Biobased industry tional and regional level.

4. Marine Bioeconomy 1.1 IN THE GLOBAL AND EU CONTEXT This document proposes a transition towards a circular Currently, more than 50 nations worldwide are pro- Bioeconomy by integrating the Bioeconomy and the cir- posing actions and strategies to boost their Bioeco- cular economy models into a vision where the produc- nomy, the economic dimension of which is steadily tion and use of renewable bio-resources and their con- increasing. version into value added products is part of a circular 1 A sustainable Bioeconomy for Europe: strengthening the connection between economy, society and the environment, European Com- mission, 2018 2 Closing the loop - An EU action plan for the Circular Economy, COM/2015/0614 final 3 Global Bioeconomy Summit 2015 Communiquè 7

1. BIOECONOMY – AN INTRODUCTION In Europe, the Bioeconomy is already worth EUR 2.3 tion Plan is fully completed. Its 54 actions have been trilion in annual turnover and accounts for 8.2% of the delivered, even if the work on some of them continues EU’s workforce (18 Milion of jobs). The Bioeconomy is beyond 2019. a central element to the functioning and success of the EU economy. The deployment of a sustainable Eu- On 4 March 2019, the European Commission adopted ropean Bioeconomy would lead to the creation of jobs, a comprehensive report on the implementation of the particularly in coastal and rural areas through the Circular Economy Action Plan. The report presents the growing participation of primary producers in their lo- main achievements under the Action Plan and sketch- cal bioeconomies (EU Updated Bioeconomy Strategy, es out future challenges to shaping our economy and 2018). Furthermore, the food industry is the largest in paving the way towards a climate-neutral, circular the EU and there is still potential for growth, with new economy where pressure on natural and freshwater businesses and industries emerging in both tradition- resources as well as ecosystems is minimised. al and novel food and non-food sectors. The updated EU Bioeconomy strategy will unlock the potential of The Mediterranean area deserves a specific focus: it available bio-resources in the various Bioeconomy is characterized by high levels of hydric stress that, and blue economy sectors in a sustainable and social- together with climate change, have a negative im- ly responsible way. This updated version puts sustain- pact on agriculture. This has a negative influence on ability and circularity at his hearth to drive the renewal standards of living, with social and economic stress of the European industries, the modernization of the acting as a major cause of instability, which in turn primary production systems, the protection of the en- contributes to migration, both internally, from rural vironment and enhance biodiversity. to urban territories, and externally, in particular to- wards Europe. For food security reasons, a sustain- Three years after adoption, the Circular Economy Ac- able management of water provision and use and of 8

1. BIOECONOMY – AN INTRODUCTION food systems is required to provide clean water and and natural patrimony. However, it is facing serious affordable food for the region’s inhabitants. PRIMA is 4 environmental challenges related to climate change, an initiative launched by Italy, aimed at making water growing maritime traffic and pollution, the overex- provision and food systems more ef ficient, cost-effec- ploitation of fish stocks, invasions of alien species, etc. tive and sustainable, at helping solve bigger problems At the same time, local biodiversity and deep sea re- relating to nutrition, health and social wellbeing, and sources, tourism, renewable energy production, ma- ultimately helping address mass migration trends. rine aquaculture etc. are major local opportunities for ‘blue’ growth and the creation of jobs in areas that are The BLUEMED Initiative5 - also promoted by Italy -, currently underexploited. BLUEMED was initiated by aims, in line with the two other regional initiatives EU- the EU MS of the area as a way of addressing/imple- SAIR and WEST MED regional initiatives, to create new menting such challenges and opportunities via a com- ‘blue’ jobs and sustainable economic growth in the mon and shared vision and a Strategic R&I Agenda. marine and maritime sectors in the area. The Medi- terranean Sea is a basin with unique bio-geo-physical The Bioeconomy could therefore contribute greatly to characteristics that contributes significantly to the EU the regeneration, the sustainable development and the economy by supporting 30% of global sea-borne trade. political stability of the area and, in turn, to a reduc- It has more than 450 ports/terminals, which host the tion in the migration phenomenon (for example with world’s second largest market for cruise ships, half of reference to the implementation of local investment the EU’s fishing fleet and a unique cultural heritage projects with a high social and infrastructural impact, as outlined in the “Migration Compact” document pro- posed by the Italian Government). Italy in particular, 4 Partnership for Research and Innovation in the Mediterranean through the two initiatives it is coordinating, can play a Area: prima4med.org, 4prima.org key role in achieving this aim. 5 researchitaly.it, bluemed-initiative.eu 9

1. BIOECONOMY – AN INTRODUCTION 1.2 AT ITALIAN LEVEL Added (2.1%) (ISTAT, 2018). The total agricultural area in Italy amounts to 16.5 million hectares, of which 12.6 mil- In Italy the entire Bioeconomy sector (including agricul- lion are in use. In 2017, the value of the production from ture, forestry, fisheries, food and beverages production, agriculture, forestry and fisheries amounted to EUR 57 paper, pulp and tobacco industries, textiles from natural billion . Around 912,000 people are employed in agri- fibers, leather, bio-pharmaceuticals, green chemistry, culture, forestry and fisheries. Rural development is an biochemicals and bioenergy) accounted for a total turn- important priority, mainly in marginal areas without ac- over of EUR 330 billion in 2017, and around 2 million em- cess to the same services of public interest as towns and ployees. 1 cities. Various rural development challenges are emerg- ing in several regions. Rural diversification is important; These estimates include all sectors of primary produc- sustainability, social media, big data availability and new tion at land and sea, those of biomass transformation business models may well bring a new dimension to ru- and of products coming out from it including bioenergy, ral life. Furthermore, thanks to the variety of its territo- plus the exploitation of wastewater (12,100 Mio €) and of ry and the long and diversified historical heritage, Italy the municipal organic fraction (6,804 Mio €). enjoys a unique variety and richness in food traditions. This is considered one of the most important distinguish- However the potential for the substitution of renewable ing features of Italian agriculture and one of the main inputs within the chemical industry is high: according to strengths of the sector in international competition on one estimate6, in the current technological framework the agriculture/food markets. (not considering therefore economic and environmental sustainability), around 40% of chemical products could Agriculture and forestry have a vast potential in the con- theoretically be produced with renewable inputs. Beyond text of the biobased and circular economy, ranging from this potential (theoretical) substitution, the share of ef- the efficient management of resources, biodiversity, pro- fective substitution will strongly depend on industrial and tection, soil and land sustainable management, produc- environmental policy and technological innovation. tion of ecological and social services, enhancement and re-use of residuals and wastes, as well as the production Agriculture of bioenergy and bio-products through the adoption of Agriculture is an important economic sector in Italy, ac- sustainable production models and the efficient use of counting for EUR 33 billion of contribution to Gross Value renewable resources. 6 Intesa Sanpaolo-Assobiotec “Report on Bioeconomy in Europe”, March 2019 10 134.204 40,9% 1 Bioeconomy in Italy in 2017 Food industries, beverages and tobacco Turnover: 328.036 Agriculture, forestry, fisheries and aquaculture (million euro) Bio-based apparel 57.965 Paper industry 17,7% Bio-based textiles Bio-based pharmaceutical 32.804 Wood industry 10,0% 22.731 15.022 16.440 9.642 12.120 13.295 6,9% 6.804 5,0% 4,1% 4,6% 3,7% 2.035 3.112 2,1% 2,9% 1.689 169 0,6% 0,9% 0,5% 0,1% 0% 0,3% 0,1% 0,3% 2,1% 2,3% 1,8% 0 2,9% 3,6% 7 2 7 3,8% 43 46 36 58 5,2% 72 76 104 10% Water cycle 200 Bio-based furniture Biodegradable waste recovery and management 22,4% Bio-based chemicals 450 Bioenergy Bio-based plastics and rubber Employment: 2.013 Biofuels (th. person employed) Source: Intesa Sanpaolo-Assobiotec “V Report on Bioeconomy in Europe”, March 2019 45,3% 912

1. BIOECONOMY – AN INTRODUCTION Food Industry (almost 822 products - Italy is the first EU Member The industry sector relies mostly on very small SMEs State in terms of number of registered products). 2 (over 88% of the companies have fewer than 9 employ- ees) but, in spite of this, it has proved to be a resilient The Food Industry opens up huge opportunities for sector, capable of growing also during the economic innovation and growth in the Bioeconomy sector. The crisis. This is due to its unique structure, especially National Agrifood Technology Cluster “CL.A.N.”7, a based on the market success of Italian products world- multi-stakeholder network of the key national play- wide, thanks to well-known trademarks and brands ers of the agrifood chain, from companies to research and also to the fact that the high value given by the so- centres, microbe collections and institutions, gave cial, cultural and environmental attention found in Ital- an important contribution on this matter through the ian products is protected by Geographical Indications drawing up of an Action Plan that identifies the most significant challenges and research priorities for the Food Industry with respect to the reuse of byproducts. These include: ĔĔ Obtaining new foods and/or fodders for zootechni- cal purposes, innovative ingredients and/or bioactive compounds for developing health-giving foods with a high nutritional value obtained from byproducts gen- erated by the agrifood processing industries; ĔĔ Adopting innovative processes to exploit byproducts left over from agroindustry processing, to be placed on the market as new products for the food, fodder and agricultural sector; ĔĔ Reducing disposal costs and finding new economic returns from agrifood byproducts; ĔĔ Analysing techniques to recuperate low cost byprod- ucts and their functional components, with a low en- vironmental impact. 7 clusteragrifood.it 12

1. BIOECONOMY – AN INTRODUCTION Forestry the sustainable forest management of Italian forests Forest surface in Italy covers 11 million hectares - ap- covered 10% of the total national Kyoto target for CO2 proximately 39% of the national surface territory. emission reduction and that there is a national carbon Thanks to its Mediterranean positioning, together credit market for voluntary emission compensation. with its diverse landscape spanning from sea to high mountains, Italian forests host a wide variety of plant The whole wood/furniture supply chain in 2017 amount- ecosystems. However, forest management needs to be ed to more than 80,000 companies, employing about improved, as does the accounting for its products and 400,000 people, with an annual turnover of EUR 40 bil- ecosystem services (INFC 2015). It is worth noting that lion8, while the industry based on cellulose has an an- 8 FederlegnoArredo, 2016 Essential oils 1 2 Composition by sector Chocolate 1 Italy has registered: Pasta 5 167 PDO – Protected Other animal products 5 Designation Origin Fishes 5 130 PGI – Protected Fresh meat 5 Geographical Indication Other products 8 2 TSG – Traditional Specialty Bakery products 15 Guaranteed products. Spirit drinks 38 Meat products 43 Olive oils 46 Cheese 53 Fruit and vegetables 112 Wines 526 Source: Report Qualivita 2018 13 fleshings generated from processing. New solutions for the efficiency of processes in the fresh-cut vegetables industry and valorization The AGRIFOOD CLUSTER gave an important of wasted biomass. Within So.Fi.A., new technolo- contribution to the Bioeconomy through the gies for reducing wasted biomass production using national flagship project So.Fi.A. (Sustaina- integrated drying processes and associated energy bility of Agrifood supply chain) in terms of: recovery devices are under study. In addition, com- posting and recycling waste into “on-farm” system Valorization of dairy byproducts, especially resi- is aimed at simplifying biomass management, re- dues of ricotta cheese (scotta) and cheese whey ducing environmental impact. for recovery of their bio-molecules. A specific ex- perimental campaign was conducted focused on Other important initiatives led by food companies: double ultrafiltration steps followed by nanofil- SUSTAINABLE FARMING for ITALIAN HIGH QUAL- tration on scotta and cheese-whey with the sepa- ITY DURUM WHEAT CULTIVATION - a landmark ration and concentration of proteins, lactose and project aimed at shifting towards more sustainable peptides. The liquid intermediates obtained after durum wheat cultivation in order to improve pro- ultrafiltration were conferred to other partners of duction and soil efficiency through the optimization the project for post-processing treatment (enzy- of operations and inputs, as well as to reduce soil matic hydrolysis, oxidation) to turn bio-molecules degradation. It is followed up by a Handbook for in bio-active and functional substances as pre-bi- Sustainable Cultivation of Durum Wheat and a Web otics, functional peptides, lactulose and lacto-bi- based Decision Supporting System (DSS) imple- onic acid. mented through the incorporation in a standalone entity of all public and private research, on-field Strategies for the reutilization and valorization on trials, agronomic principles, soil-climate-crop beef processing byproducts and wastes. The pro- modeling, environmental footprint. duction of new food (Bone Chips for gelatin, tallow, and food proteins) and non-food products (tallow EU flagship initiatives: AgriMax project (BIO BASED and animal flour for the production of energy and INDUSTRIES JOINT UNDERTAKING - H2020-BBI- depilated hides) to be included in various national PPP-2015-2-1): Agri and food waste valorisation co- and international industrial sectors represents the ops based on flexible multi-feedstocks biorefinery final goal. The byproducts which could not be val- processing technologies for new, high added-value orized otherwise, will be used for the production applications. The project combines flexible pro- of electric and thermal energy directed to satisfy cessing technologies to valorize residues and by- the energy needs of the company. The aim of the products from the agriculture and food processing So.Fi.A. project, to valorize the beef hides, is the industry to extract valuable biocompounds used to development of a biotechnological method for hair produce active ingredients, such as packaging and removal and exploitation of proteins, bioactive pep- agricultural materials. tides and collagen of the obtained products and of

1. BIOECONOMY – AN INTRODUCTION nual turnover of about EUR 22 billion, over 3,800 com- In addition, processed wood is converted into a few and panies and over 72,000 employees. However, it should traditional low value products while more room should be noted that in such an important industry, 80% of the also be made to expand the role of wood in the bio-con- wood used is imported from other countries. There- struction industry. The current lack of integration and fore, one of the primary objectives is to increase the of efficient chains between the primary production degree of self-supply in this area. and the wood processing industry is limiting both so- cio-economic growth and the international competi- Solid biomass fuels (among these wood) represent the tiveness of the whole value chain. main renewable source of energy on a national scale. The bioenergy sector has also shown strong growth With regards to ecosystem services, although these are during the last few years, becoming a very dynamic not (or are just marginally) included within official na- segment - including biomass producers and traders, tional accounting systems, they are increasingly recog- stove producers, energy plant managers etc. - within nised as an important component of forest ecosystems9. the forest-wood sector. In the development of the Bio- economy it is important to grow and support bioener- Bio-based industry gy through which it will be possible to reach the goal The bio-based industry is the segment of the Bioecono- of decarbonising the energy sector and also increase, my that uses renewable biological resources in innova- through biogenic processes, the absorption of CO2 in tive industrial processes for manufacturing biomass-de- biomass, in agricultural and forestry soils (carbon se- rived goods/products and services. Hence it concerns questration). Beyond the domain of wood-based prod- industrial sectors which traditionally use biological re- ucts, non-wood (or wild) forest products and forest-re- sources as their main feedstock or catalysts (forest-base lated ecosystem services deserve to be mentioned. The sector, bio-fuels/bio-energy, biotechnology) and others former include a number of products - such as mush- for which biomass is part of the raw material portfolio rooms, truffles, herbs, cork etc.- which often have a (e.g. Chemicals, Plastics, Consumer goods). strong link to traditional knowledge, local economies and forest management practices. While in many cas- Thanks to the levels of innovation already achieved es economic activities related to these products remain through a number of proprietary technologies devel- largely informal, there is an increasing number of cas- oped in the chemistry and industrial biotechnology es where wild product production has become more sectors, the investments made, the range of products structured and more important than wood production such as green catalysts and microbes, and the value in terms of direct and indirect income opportunities, chains available, Italy is playing a leading role in the job creation, visibility and rural development potential. bio-based industry. 9 The implementation of PES mechanisms is recalled by Art. 70 of the 2015 Budget Law (Collegato Ambientale alla Legge di Stabilità, 22nd December 2015) and related norms/regulations. 15

1. BIOECONOMY – AN INTRODUCTION This is a fundamental macro-sector, as it supplies inputs and knowledge for technologies expected to mitigate en- vironmental emergencies, as in the case of bio-plastics production. Bio-based plastics and rubber account for about 1690 Million of euro of turnover and involve 7000 employees. Bio-materials are gaining attention also for applications as building envelopes and in the construc- tion sector in general. Electricity and heating from bio- mass and bio-energy in a broad sense (2035 million euro of turnover corresponding to 0,6 % of the Bioeconomy SPRING’s Roadmap built upon its members’ and 2000 employees, namely 0,1%) are consolidated sec- priorities and objectives, establishes a com- tors, together with next-generation bio-fuels (169 million mon ground in the discussion with region- euro). Also bio-pharmaceutics (turnover: 15022 million al, national and European institutions which euro, corresponding to 4,6 % of Bioeconomy and 36000 the Cluster considers as key partners for employees), bio-cosmetics and bio-based chemicals achieving the long-term objectives related to (Turnover 3112 million euro with 7000 employees) are the transition towards a new model centered highly specialized sectors taking part in the Bioeconomy. around the concept of “sustainable regions” Bio-textiles (turnover of 16440 million euro accounting and present the main innovation break- 5% of Bioeconomy and 76000 employees) and bio-based through for Italian Biobased Industries. apparel (32804 million euro corresponding to 10 % of the Bioeconomy and employing 200000 workers) are cru- A. Achieving a Near-to-zero waste country cial segments of the Bioeconomy, strongly connected by completely reusing biowaste as bio- to high value manufacturing productions of the made in char, biogases, and biobased products. Italy. The Bio-based industry also embraces production activities aimed at the effective valorization of biological B. Reconverting disused industrial sites materials for residential buildings (e.g. vertical indoor into next generation biorefineries. agriculture, etc.), bio-waste, urban, agricultural and in- dustrial effluents/wastewater, agriculture and livestoks C. Maintaining and reinforcing Italian ex- residues, the production of bio-methane, bio-fertilizers, cellence in R&D in a global contest fac- bio-lubricants, and essential amino acids for feed pro- ing more and more aggressive policies duction. Bio-based chemistry is one of the few sectors developed by the major countries and where our country is a leading player in a high-tech en- the growing interest of the most impor- vironment, with large private investments, and impor- tant chemical companies. tant projects underway for the reconversion of industrial sites affected by the crisis into bio-refineries for the pro- 16 3 Biorefineries: industrial plants and flagships INDUSTRIAL SITES FLAGSHIPS Piemonte INDUSTRIAL PLANT Lignocellulosic bioethanol (Crescentino - VC) FLAGSHIP Succinic acid (Cannano Spinola - AL) Emilia Romagna INDUSTRIAL PLANT based on vinification scraps and byproducts (Faenza - RA) Umbria INDUSTRIAL PLANT Bioplastics based Veneto on starch and polyesters from Sardegna FLAGSHIP 1.4 BDO from renewable raw vegetable oils (Terni) FLAGSHIP Bases for biolubricants and materials (Adria - RO) bioadditives for rubber (Porto Torres - SS) FLAGSHIP for the production of biofuels Lazio from vegetable oils biomass INDUSTRIAL PLANT Biodegradable FLAGSHIP Azelaic acid and pelargonic (Porto Marghera - VE) polyesters (Patrica - FR) acid (Porto Torres - SS) 17

1. BIOECONOMY – AN INTRODUCTION duction of bio-products and bio-chemicals from renewa- ble sources. Over a billion euros has already been invest- Italian Flagships ed in the re-industrialisation of decommissioned or no longer competitive sites of national importance and for Italy has important projects for the recon- the construction and launch of four flagship plants - the version of industrial sites affected by the first of their kind in the world. 3 4 crisis into biorefineries for the production of bioproducts and biochemicals from re- Notably, the Italian bio-based industrial sector is char- newable sources, with positive impacts acterized by a network of large, medium and small- on employment, the environment, product sized companies which work together, leveraging on profitability and integration with oil-based the sustainable production and efficient use of biomass, products, enabling greater specialisation following a cascading approach to increase the added and competitiveness. Some of these pro- value of agricultural production with complete respect jects, coordinated by leading Italian players for the biodiversity of local areas, in collaboration with in bio-based industries sector have been the agricultural world and creating partnerships with recognized as flagship initiatives in Europe local actors. Italy is also the second EU country (after by the BBI Joint Undertaking. Germany) for the production of biogas and bio-methane with 1,924 installed plants and the total Bio-energy pro- duction is 19,400 GWh (Terna, 2017). There are other factors that have contributed to Italy’s success in bio-based chemistry: the existence of the First2Run: Flagship demonstration of an in- Cluster of “Green Chemistry” SPRING10, a national plat- tegrated biorefinery for dry crops sustaina- form which brings together over 100 of the main stake- ble exploitation towards biobased materials holders of the value chain, from farmers to entrepre- production. neurial associations; it represents a proven, effective collaboration between public and private stakeholders, and research bodies with strong competences on the main value chains of the biobased industry; a network of large, medium and small-sized companies which work together (the main sectors represented are: bio-based BIOSKOH’s: Innovation Stepping Stones for chemicals, oleochemistry, bio-lubricants, cosmetics, a novel European Second Generation BioEc- wheat and corn wet-millers, bio-plastics, bio-methane). onomy. 10 clusterspring.it 18 4 Biobased R&D Piemonte centres, pilot R&D CENTER Bioplastics and biochemicals from renewable raw plants, demo plants materials (Novara) and experimental R&D CENTER Chemistry from fields renewables (Novara) R&D CENTER Biochemicals and biofuels R&D CENTERS from renewables (Rivalta Scrivia - AL) PILOT PLANTS PILOT PLANT Fatty alcohols DEMO PLANTS (Rivalta Scrivia - AL) PILOT PLANT Biomonomers (Novara) EXPERIMENTAL FIELDS EXPERIMENTAL FIELDS Lombardia R&D CENTER Biolubricants (San Donato Milanese - MI) R&D CENTER Green chemistry, process engineering and biolubricants (Mantova) PILOT PLANT for biobased butadiene (Mantova) PILOT PLANT for biobased coatings (Cernusco sul Naviglio - MI) Umbria PILOT PLANT for biomaterials from R&D CENTER PILOT PLANT and mycelia and scraps (Varese) DEMO PLANT Oleaginous crops and Basilicata EXPERIMENTAL FIELDS biolubricants from local crops (Terni) R&D CENTER for green biotechnologies EXPERIMENTAL FIELDS (Matera) Veneto PILOT PLANT for conversion of non- R&D CENTER for new technologies Lazio food cellulosic biomass into cellulosic development in the biotech-sector EXPERIMENTAL FIELDS glucose (Rotondella - MT) (Adria - RO) 2 PILOT PLANTS for steam gasification of Campania Emilia Romagna biomass (Rotondella - MT) R&D CENTER on biotechnologies R&D CENTER Bioelastomers (Ravenna) EXPERIMENTAL FIELDS (Piana di Monte Verna - CE) PILOT PLANT for PHA (Bologna) EXPERIMENTAL FIELDS Sardegna EXPERIMENTAL FIELDS R&D CENTER for biochemicals from Puglia vegetable oils (Porto Torres - SS) Toscana R&D CENTER to characterize biomass R&D CENTER and PILOT PLANT for and biomaterials, organic waste EXPERIMENTAL FIELDS biolubricants and biopesticides and sludge, residues and agro-food (Sesto Fiorentino - FI) byproducts (Foggia) Sicilia PILOT PLANT for cellulose extraction R&D CENTER PILOT PLANT and PILOT PLANT Anaerobic digester from citrus for textiles (Caltagirone - CA) DEMO PLANT on bioenergy, biofuels and plant, pyrolysis/gasification plant, bioproducts (Scarperia e San Piero - FI) photobioreactors plant (Foggia) EXPERIMENTAL FIELDS 19

1. BIOECONOMY – AN INTRODUCTION Marine Bioeconomy Italy is characterized by over 8000 km of coastline, 40% of whose jurisdiction space is under water. It can there- fore count on remarkable sea-based resources (food, microbes, energy, materials, landscape). Currently, Bi- National Technology Cluster oeconomy related activities are responsible for about Blue Italian Growth (CTN-BIG) 20% of the turnover and job opportunities of the present CTN BIG aims at generating new opportunities Italian blue economy, which were estimated at about € for the technological development and innova- 45 Billion/y and 835,000 employees11. These activities in- tion of the national marine and maritime in- clude fishery and marine aquaculture, the exploitation of dustrial system, integrating public and private marine algae, microbes, enzymes, and byproducts and research. biowaste of fishery and aquaculture products process- ing, biomonitoring and bioremediation of marine water/ BIG addresses the definition of: sediment systems. In particular, Italy is, respectively12, CIRCLE technological and innovation development the second biggest European fish producer and ranks roadmaps, aligned and integrated (at region- fourth in Europe for aquaculture production. Neverthe- al and national level) with the corresponding less, about 75% of national consumption is covered by European and Mediterranean ones; imports. Sea based tourism is responsible for 19.1% of CIRCLE long-term scenarios for technology in the presences in the country and is the second contrib- Italian industry; utor to the significant part of the Italian economy driv- CIRCLE building of a common system of research en by foreign visitors. In addition to this, 64% of Italians infrastructures for sea economy. choose marine locations for their vacations. The trajectories identified for the cluster ac- tions are: Within this context, CTN BIG represents a single ag- CIRCLE marine environment and coastal zone gregative organization at national level, whose goal is CIRCLE blue biotechnology improving the performances of the Italian system in the CIRCLE renewable energies from the sea areas of research, innovation, and growth of human cap- CIRCLE abiotic marine resources ital of the sea economy, fostering the cooperative and CIRCLE marine biotic resources complementary links between the 31 public players, 41 CIRCLE shipbuilding and marine robotics private players and 10 regional ones. CIRCLE skills and jobs CIRCLE research infrastructures CIRCLE sustainability and economic uses of the sea 11 VII rapporto sull’economia del mare, Unioncamere 2018 12 Facts and Figures on the common fisheries policy 2018 20

1. BIOECONOMY – AN INTRODUCTION 1.3 BIOECONOMY AT REGIONAL LEVELS the Bio-based industry. The study paves the way to in- terregional cooperation in the Bioeconomy, especially The availability of local competitive biological feedstocks between neighboring territories, opening up also the is an important requirement for Bioeconomy industries. necessary dialogue with national programs and strate- Italian regions, at an individual level, have a high level gies. 5 of agricultural and natural landscape specificity linked to the biodiversity of cultivated plants, animals, related The Italian regions are particularly motivated when it ecosystem services and their diverse cultural heritage. comes to keeping rural economies alive, putting into place regional economic cycles and supporting agro-in- A recent collaborative work for the drawing up of a Posi- dustrial local projects with the strategic idea of using tion Paper on Bioeconomy (6/129/CR08b/C11), developed bio-resources in a more innovative and efficient way. by the Conference of the Italian Regions, monitored the Some of the initiatives carried out demonstrate the po- strategic position of the regions with respect to three pil- tential and the socio-economic impact of the develop- lars of the Bioeconomy: Marine Bioeconomy, Agrifood, ment of the Bioeconomy at a local level. BLU ECONOMY AGROFOOD 5 Strategic BIO-BASED INDUSTRY positioning of the Regions with respect to the three main pillars of Bioeconomy (from the Conference of the Italian Regions, elaborated on the Bioeconomy Position Paper) 21

1. BIOECONOMY – AN INTRODUCTION The Agrifood sector is a priority in the strategic plans of integration with regional agriculture systems. all the regions, reflecting the value and importance of the sector linked to the quality and strong identity of the The Italian regions are willing to establish a distributed products. The agrofood system issues related to quality, Bioeconomy system built on modular and multiple con- sustainability and recovery of environmental value, and cepts, by building cross territorial links and interregion- the relationship between food and health are central to al value chains. The key components of the Distributed the vision of the regions. Business Models are the distributed units and the modu- lar nodes. Each module or production site is a node of its The regions see great potential in the development of the own, and is linked to several other nodes according to the bio-based industry - the second sector in the strategic needs and deliverables of each node. assessment. The potential is largely related firstly to the exploitation of food chain wastes and byproducts, with The analysis provided by Intesa Sanpaolo in 201713, shows the aim of reducing the environmental impact, and sec- clearly how each territory, with its own specificity, can ondly to the development and increase of crops produc- play an important role in the national Bioeconomy and tion in marginal and underutilized agricultural areas and national Bioeconomy strategy, due to the different geo- increase of intermediate crops, such as catch crops and graphical allocation of biological resources, technologies, cover crops. Some territories host important projects for skills and expertises. This picture confirms the fact that the reconversion of de-industrialized sites into biorefin- Bioeconomy could become a key area of development for eries for the production of bioproducts and biochemicals each territory, taking advantage of strengths and poten- from local renewable sources, leading to positive impacts tial of each region. on employment, environment, product profitability and 13 “La Bioeconomia in Europa - 3° Rapporto” (2017) 22 es through a diffused network of small sized plants. The project involves 7 enterprises and has reduced EXAMPLE OF REGIONAL PROJECTS the environmental pressure by saving 1,000,000 TEP, check One recent example of an industrial reconversion is at the same time producing 17 new jobs. a new plan for the production of bio-butandiol at an old chemical site. The factory, which will produce 30 thou- check Another important initiative developed in Tuscany sand tons of bio-butandiol per year, hired 51 employees is related to the production of 20,000 tons of soil com- at the end of 2015. It will be the first facility in the world post per year from local organic waste coming from capable of producing butandiol (BDO) directly from sug- the urban separate collection and treated in three ars rather than from fossil sources. This is done through industrial composting plants. The initiative provides a low-impact process and the co-products are completely a supplement to industrial fertilizer production lines, reused. Some of these projects are coordinated by lead- as well as organic fertilizer for farmers and public ing Italian players in bio-based industries sector and have administrations. 30% of the mixed compost is used by been recognized as flagship initiatives in Europe by the the industry and the rest by local farmers on various BBI Joint Undertaking. crops in the provinces of Florence, Pistoia and Pisa. check Other interesting cases are focused on the possibility check Aquaculture is an important sector in Italian regions of using agricultural residues as a source of renewable where there is a high availability of water and sea coast. energy - very common in several regions - thanks to the One of the objectives of aquaculture is to reduce energy existence of public subsidies for investments. Agro-ener- consumption and minimize the environmental impact. gy offers farmers the potential to earn extra income and One initiative developed and supported by the Veneto Re- often pushes for cooperation among farmers in order to gion relates to the cultivation of mussels with a continu- aggregate the biomass needed to manage a bioenergy ous rope and a biodegradable retention net. The projects plant. The most accepted and widespread model is a grid led to a 50% in fuel reduction and waste, and an increase of a diffused small-medium size agro-energy plant pro- in production of up to 9,5 tons. ducing bio-methane, that in many cases uses zoo-tech- nical waste integrated with solid matter deriving from check Microalgae cultures have a strong potential for indus- cultivated crops. An example of this kind of initiative can trial developments thanks to the higher yield capacity per be seen in the Veneto Region, where 14 farmers active in unit of land used when compared to green plants, and the cereal production, cooperated in setting up a 1MW biogas production of a variety of fine biochemicals. A Best Prac- plant fed with the waste of their production, creating a 2 tice on microalgae cultures has been supported by the million Eur/year turnover, making farm jobs more stable Liguria Region and the BIOFAT EU project. The industrial and creating new jobs for plant management and service. pilot initiative is developing rapidly, covering a 8,000 sqm greenhouse surface and employing 15 people, demon- check The Biopower project in Tuscany tackled the chal- strating the potential of producing oil and fine products for lenge of energy production by using renewable sourc- pharmaceutical and cosmetics. 23 2 2 RAW MATERIALS SOURCES AND THE OPPORTUNITIES OF BIOWASTE: THE IMPACT OF THE BIOECONOMY ON THE ENVIRONMENT AND NATURAL CAPITAL CONSERVATION From the environmental viewpoint, the Bioeconomy rais- and environmental needs: increasing the value added of es both opportunities and challenges. the Bioeconomy sectors should not be done by importing raw renewable materials from countries with less strict The opportunities are linked to the gradual shift in pro- environmental regulations, as this could result in shifting duction processes from non-renewable to renewable the environmental damage abroad. resources in order to limit the environmental pressure on ecosystems. Higher value is placed instead on their It is clear, therefore, that the opportunities and challenges conservation as, beyond their intrinsic or existing value in building a sustainable and flourishing Italian Bioecono- connected to other services, they can provide important my vary according to the source of biomass in the Bioeco- services for the economy, - including the strategic im- nomy sectors, according to the need for “using better what portance of finding nature-based solutions to cope with we already use” and “using well what we don’t use yet”. climate change and hydrological risks. Furthermore, the Bioeconomy implies the possibility of decreasing The stock of renewable natural resources, including dependence on resources not widely available in Italy. forests, water, land, landscapes, terrestrial and marine Producing more from renewables may ease the problem plants and animal species not only supplies food, raw of waste management as these sources are more easily materials, energy, fresh water and medicinal products reabsorbed by the nature receptors. for human consumption, but represents overall the most significant part of the total value of our natural capital. However, the Bioeconomy can also lead to a number The sustainable management of this stock offers other of challenges. One necessary condition is the econom- benefits to human society and the environment through ic, environmental and social sustainability of products a continuous flow of regulatory, supporting and cultural and processes. Especially in the food and fish industry, ecosystem services that are worth accounting for. there are many examples of unsustainable management for both the environment and human health. The Value Agriculture based on sustainable practices responds to Added and utility for the society can be increased by im- its primary function of food production while enhancing proving the quality of products and reconciling economic the correct management of natural resources (soil, wa- 25

2. RAW MATERIALS SOURCES AND THE OPPORTUNITIES OF BIOWASTE ter, air), biodiversity and contributing to genetic diversity of algae are becoming increasingly important as indus- conservation. trial feedstocks. Through physical, chemical and bio- logical processes these materials can be converted into Between 1960 and 2000, the European countryside ex- fuel, chemical intermediates, polymers and specialties perienced a dramatic change in land use. Further land in general for which mineral oil has been used to date. abandonment is forecast to continue until 203014, accord- We need to further valorize this potential of the agricul- ing to the Institute for European Environmental Policy tural sector within the circular economy. Innovative, sus- and Eurostat survey. Estimates indicate an overall de- tainable Bioeconomy sectors should follow this general crease in agriculture, grasslands and semi-natural hab- approach for the use of raw materials: itats of more than 30 million hectares and an increase in urbanization. Activating synergies between agricul- ĔĔ determination of the most suitable species (identifi- ture, forestry, and the industrial sector in order to reuse cation of autochthonous crops, plants, algae) and bi- residuals and waste for the production of bio-products omass at a local level (dedicated low-impact crops or and bioenergy, could help in bringing marginal and aban- not fragile marine areas), most suitable with respect doned lands back into cultivation. Agriculture is already to technical and environmental prerequisites in agri- responding well today to the model of the circular econo- culture and biorefinery processes; my - as in the case of the production of biogas and diges- tate, with positive impacts on organic soil matter. ĔĔ identification and use of marginal and/or contami- nated lands, in line with international policies on cli- Nature provides us with an enormous range of raw ma- mate change and biodiversity, sustainable intensifi- terials from which it is possible to synthesize various cation policies, and in synergy with regional and local chemical intermediates which are similar to those ob- policies; tained from raw fossil materials. It also has a wide va- riety of molecules and processes for synthesizing which ĔĔ promotion of novel and efficient use of biomass (by are extremely interesting, yet until today, remain large- extracting all possible value from renewable resourc- ly unexplored. As a consequence of energy-related and es, starting from food and feed components, or their environmental problems arising from the use of fossil conversion to materials and bio energy; or the produc- energy, renewable raw materials such as vegetable oils, tion of new sustainable advanced materials such as starch from corn and potatoes, cellulose from straw and biofillers, biopolymers, oils, resins, elastomers, from wood, lignin and amino acids as well as the exploitation non food or residual biomass etc.) 14 “Agri-environmental indicator - risk of land abandonment” 2013: farmland abandonment due to economic, structural, social or difficult regional factors is estimated to have a higher risk in southern Member States (ec.europa.eu). 26

2. RAW MATERIALS SOURCES AND THE OPPORTUNITIES OF BIOWASTE ĔĔ construction of new supply chains integrated with Biowaste comes both from the primary vegetal produc- agriculture forestry and the industrial sectors, en- tion (those arising in-field e.g. cereal straw, sugar cane suring competitiveness and profitability for all partici- tops and leaves) (about 10 million t/y), and livestock pro- pants in the value chain; duction (about 130 million t/y) along with the bio-residu- als and waste from the primary food biomass processing ĔĔ reliance on eco-labelled, certified forest products, and food making e.g. husks, hulls, shells, bagasse, etc. preferably from local chains through a cascade use of (about 15 million t/y). In addition, there are forest residu- wood products. als arising in-field e.g. thinnings, tops and branches (up to 40% of above-ground forest biomass) and residue from Also within the context of the Common Fisheries Poli- primary processing at sawmills or pulp and paper mills cy, the sustainable use of fish stock is at the basis of the e.g. sawdust, chips from off-cuts, black liquor (about functioning of the marine ecosystem, as well as of the 11.5 million t/y). Finally, the organic fraction of municipal future livelihood itself of fisheries and marine bio-based waste collected in the country was above 6.5 million t/yin economy. This is even more crucial in the Mediterrane- 201715. Such residual streams are currently only partially an Sea where the overexploitation and the introduction of and poorly valorized (mostly via biogas production) and invasive alien species threatens local fish and their hab- mainly disposed of in landfills, with consequent high ex- itats. To this end, aquaculture can be a viable solution to ternal costs and negative environmental impacts. Many the sustainable management of the fisheries and it is no of them, and in particular the agro-food industry byprod- coincidence that it is prioritized in the EU Blue Growth ucts, waste and effluents, could be cheap and abundant Strategy and BLUEMED Strategic Research and Inno- sources of biobased chemicals and materials, along vation agenda . However, caution is required to mitigate with substrates for tailored biotechnological productions potential negative impacts of intensive aqua-farming, which, in turn, could enable the preparation of value-add- through monitoring the release of nitrogen and phospho- ed biobased fine chemicals, materials and bio-fuels. rous in the coastal zones. However, the “end of waste” criteria, as well as a nation- The increasing use of residuals and byproducts for the al revised regulation on waste and residuals, along with production of materials and energy is at the foundation clear indications on the potential use of the products and of a sustainable circular Bioeconomy, reducing the pres- on their quality assessment would contribute greatly to sure on raw renewable sources and dependence on fossil boosting the efficient and valuable exploitation of these fuels. forms of biomass. 15 ISPRA; Rapporto Rifiuti Urbani, 2018). 27 3 3 BIOECONOMY IN EVERYDAY LIFE    COMPOSTABLE CARRIER BAGS AND COMPOSTABLE BAGS, GLOVES FOR COMPOSTABLE PRODUCTS FOR WASTE BAGS FRUIT & VEGETABLES AND LABELS FOODSERVICE Biodegradable shopping bags, thanks The switch from traditional plastic The use of biodegradable and com- to their dual use (i.e. first carrier bags products to biodegradable and com- postable foodserviceware simplifies and then waste bags), facilitate the postable ones contributes to reduce post-consumer disposal operations. It separate collection of organic waste the generation of waste that is not can in fact allow to obtain homogene- reducing the risks of littering in the easily recyclable, toto increase the ous waste streams, ready for recov- environment. Thanks to biodegrada- organic waste collection and reduce its ery by organic recycling, avoiding its bility, compostability, transparency, contamination. Moreover, compostable contamination and, reducing environ- resistance to humidity and pathogens label could substitute standard fruit mental impact and waste management they have proved to be a key tool to labels, one of the main pollutants of costs. encourage the separate collections compost. of organic waste and to produce high quality compost.   BIOGAS  COMPOSTABLE PACKAGING Organic gas produced by the anaerobic Non-food compostable packaging such digestion of biomass that can be used FOOD PACKAGING as toilet paper, kitchen roll, napkins, as fuel for the production of electric- Compostable food-packaging solutions films for magazines can be disposed of ity and heat or as fuel as a result of a allow the diversion of food scraps due with the organic waste. refining process biomethane. to “food contaminated packaging” from Municipal Solid Waste, and therefore from landfill and/or incineration, to organic waste. 29

3. BIOECONOMY IN EVERYDAY LIFE    NEW FUNCTIONAL COLD PRESSED BIODEGRADABLE COSMETICS INGRE- MICROBIOPASSPORT, A TOOL TO OILS DIENTS MEASURE THE IMPACT OF FOOD ON INTESTINAL HEALTH An innovative vegetable oil produced Thanks to their biodegradation these The Microbiopassport is the first pat- using olives and tomatoes only by products prevent sewage sludge con- ented tool for gut microbiota analysis, mechanical processes. tamination and microplastics disper- which translates in user-friendly way • Olive oil naturally enriched in carot- sion into the sea. the complex output obtained by the enoids. next generation sequencing charac- • A good alternative to chemical ex- terization of the intestinal microbial traction of functional compounds. ecosystem and its pervasive effects on • An oil dressing naturally enriched human health. The Microbiopassport and suitable for vegetarian, vegans and is being used by several food compa- gluten-free diets.  nies to assess the efficacy of their food products. CARBOXYLIC ACIDS Carboxilic acids are the basic con stituents of bio-based plastics. They are intermediate in the production of  plasticizers, for complex esters used in the lubricants sector and in pharma/  COMPOSTABLE CAPSULES cosmetic formulations, herbicide as Biodegradable and compostable cap- well as being used in the formulation BIODEGRADABLE LUBRICANTS sules can be collected with the organic of plant protection. Some carboxylic They represent an ideal solution for waste and sent for industrial compost- acids and their esters and glycerine machinery operating in ecologically ing, where the capsule and used coffee are well-known products commonly sensitive areas (such as agricultur- are recycled together into compost, used in cosmetics applications. al, forest, marine or urban), offering with significant reduction of packaging advantages in terms of performance waste which cannot be easily recycled. and in terms of the environment and safety in case of dispersion in the ecosystems. 30

3. BIOECONOMY IN EVERYDAY LIFE    MULCHING FILMS INNOVATIVE PLASTER WITH LOW DIGESTATE PELLETS ENVIRONMENTAL IMPACT Biobased and biodegradable mulching Organic fertilizer rich in nutrient ele- • Upporttape made from biores- film provides an agronomically and ments such as nitrogen, phosphorus in-films; these substances are derived environmentally efficient alternative to and potassium, produced by anaerobic from potato starch (100% bio-com- traditional plastic mulching film. They digestion of agricultural biomass. postable). biodegrade in the soil so they do not • Central pad containing no preserva- have to be removed at the end of the tives. growing season, simplifying plastic • Innovative adhesive solvent-free and waste management operations and without natural rubber latex. significantly reducing the possibility of • Packaging made of recycled card- pollution. board.  WOOD RECYCLING Efficient management of wood recy- cling has undeniable environmental and financial sustainability advantages,   triggering virtuous mechanisms based on the regeneration of the raw mate- BIODEGRADABLE HERBICIDES BIOETHANOL rial for the creation of new products to These products from renewable origins be placed on the market. The recycled Renewable biochemicals and ener- could be used for weed control in total material is used in the production of gy source made by fermenting the respect of the environment without any particle (chipboard) or fiber (MDF) sugar and starch components of plant negative effects on water and soil. panels, for the furniture industry, for byproducts - mainly sugarcane (bioeth- the creation of wood-cement blocks for anol). Next generation of biofuel from the building industry, for pallet blocks lignine or other biomass as algae. (platforms), for pulp for the paper and compost industry. In a logic of correct cascade use, only a minimal residual part is destined to energy production. 31

3. BIOECONOMY IN EVERYDAY LIFE    BIOACTIVE COMPOUNDS FROM MEAT PORTABLE ELECTRONIC SYSTEMS MULTIPLE USES OF MARINE ALGAE BY PRODUCTS FOR OLIVE OIL QUALITY CONTROL Macro and microalgae are used as Optimization and validation of modi- The portable electronic systems allow food, as a fertilizer, for pharmaceu- fied response surface methodology to quick and in-situ analysis of olive oil ticals, cosmetics, and for feeding extract bioactive peptides from poultry quality (free acidity and total phenol terrestrial animals on farms. Other im- and fish byproducts. content). portant applications are the production • Based on impedance analysis and of renewable fuels, of CO2 filters and of optical transmission measurements. 100% biodegradable plastic. • Battery operated. • Use of non-toxic reagents. • Quick response (30 sec for free acidi- ty and 10 min for total phenol content).  PLASTICIZERS  Plasticizers for specialty elastomers and PVC, as well as an innovative type BIONSENSOR FOR BACTERIAL CON- CENTRATION MEASUREMENT of bio-extender oil for general purpose elastomers.  A portable device for quick and in-situ analysis of bacterial concentration in MARINE MICROORGANISMS FOR BIOREMEDIATION liquid and semi-liquid food samples. • Based on impedance analysis. Some marine bacteria produce • Embedded mini-thermal chamber. bio-surfactants during growth on • High sensitivity. hydrocarbons, their use for the • Quick response: 3 to 12 hours  biodegradation of petroleum hydro- depending on the sample bacterial carbons in the marine environment is MARINE BIOMATERIALS FOR concentration. SUSTAINABLE BUILDING more efficient to that of surfactants of Successfully tested with many types non-marine and of synthetic origin. of food-samples: ice-cream, raw milk, Posidonia Oceanica laid on the shore WATER, BEER. is used as a high efficient, durable and fireproof thermal and acoustic insula- tor for building, helping to solve also the problem of its disposal. 32

3. BIOECONOMY IN EVERYDAY LIFE    BIO-INNOVATION IN RECIPES NATURAL DYES SPREADABLE PRODUCTS Use of natural products to replace Such as enocyanin from the anthocy- Rich in bioactive phenols based on products derived from chemical anin group, extracted from red grape olive oil byproducts such as vegetation synthesis processes, to support the skins. water and olive pomace. diversification of products and diets (snacks and sweets using derivates of an algae called “Spirulina” rich in essential nutrients like proteins, vita- mins, minerals, essenal amino acids and Omega 3 and 6).   RECTIFIED CONCENTRATED MUST BAKED GOODS AND FRESH PASTA It is a liquid and transparent grape Enriched with bioactive compounds sugar, made up of equal parts of recovered from bran and wheat germ. glucose and fructose, suitable to meet  the growing demands for healthier and more natural foods, as it has a greater TOMATO SAUCE sweetening power than sucrose, a reduced caloric intake, a better digest- Enriched in fiber by using a ultra-mi- ibility and assimilation. cro milling which allowed to re-use  both seeds and peel of tomato. EDIBLE SKINS Obtained by vegetables and fruits byproducts used to extend the fruit or vegetable’s shelf life. 33 4 4 THE SOCIAL DIMENSION OF THE BIOECONOMY To meet the Bioeconomy challenge of “reconnecting The Bioeconomy, due to its intrinsic characteristics, has economy, society and environment” it will not be suf- the potential to achieve a more profound integration be- ficient simply to employ biomass for industrial applica- tween economic, environmental and social objectives. tions or to use regenerative instead of fossil raw ma- However, this is possible only through investment in terials. It does not mean simply integrating biological new capacities of consensus building for public and pri- knowledge into existing technology. vate sectors: To meet the challenge, a transition must take place also ĔĔon the part of companies through business mod- from a social point of view, stimulating social aware- els which involve costumers, workers, users and ness and dialogue, as well as better supporting innova- stakeholders affected by their activities (primar- tion in social structures leading to more conscious be- ily citizens) in a common vision concerning sus- haviour. Greater knowledge of what is being consumed tainability; while the development of new products, - especially food products and processes - would lead to services and investments related to the Bioecono- improvements in health conditions and lifestyle, stimu- my creates new economic value, jobs, relations and lating a demand pull on sustainable innovation by com- collaborations, it should also be clear that the Bio- panies. For this reason, it is crucial to further develop economy is able to meet social needs and is aimed ecolabeling. at improving human well-being, enhancing an indi- viduals’ capacity to act. This transition process in the economy and society needs to take place in a holistic way, and in order to exploit the ĔĔon the part of the government, through a diffused major potential benefits of this process, citizens must adoption of a participatory and place-based ap- become the key players in the necessary social trans- proach which conveys a new concept of a territory formation that the bio-based economy can stimulate. as a space of endogenous material and immateri- al assets, and networks of economic, social, cul- Social dialogue and an understanding of the challenges tural, institutional relationships and interactions; and opportunities of the Bioeconomy play a decisive role the Bioeconomy is an opportunity to reassemble in the demand for new products and services, and hence fragmented knowledge and capabilities into new for the associated innovations and technological devel- stocks and flows of productive knowledge, building opments. Actions such as public procurement need to on new innovation processes; this will also help to- be turned into participatory actions allowing commit- wards creating a common identity among people in ment, understanding and potential for replication. the territories. 35 5 5 LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES The Bioeconomy has strong synergies with many EU The SNSI is implemented through specific initiatives of and National strategic plans, norms and funding meas- the National Operational Programmes 2014-2020 for Re- ures which give opportunities to improve action plans search and Innovation (NOP R & I) and for Enterprise and and specific measures for the Bioeconomy. In brief, the Competitiveness (NOP E & C) and through strategic plans legislative and funding framework is composed as fol- funded by public resources from cohesion policy, nation- lows: al and regional ordinary funds, and private resources. 5.1 NATIONAL SMART With reference to the Bioeconomy, two strategic plans SPECIALISATION STRATEGY have been defined: Agrifood and biobased economy16, both of which are pillars of this Strategy. They derive from The Italian Bioeconomy Strategy is part of the imple- an interactive process of cooperation between public and mentation process of the National Smart Specialization private sector defined entrepreneurial discovery process. Strategy (SNSI). The Smart Specialisation Strategy aims to identify priorities for investment in research, develop- The Italian Bioeconomy Strategy lays down the policy ment and innovation that complement the resources and framework for these two action plans that are related productive capacity of territories to build comparative to the main spheres where the Bioeconomy and the bi- advantage and sustainable growth path in the medium otechnologies have the greatest impact. and long term. In the programming period 2014-2020, Research and Innovation Strategies for Smart Speciali- The two Plans have fallen within the scope of a recent sation [RIS3] are an ex ante conditionality for the use of support measure (grants and subsidised loans) of 562.7 European Structural and Investment Funds’ resources million euros in favor of industrial research and devel- devoted to the thematic objective “strengthening re- opment launched between November 2018 and January search, technological development and innovation”. 2019 by the NOP “E & C”. The companies having partici- pated in the call absorbed all available resources17. 16 The Plan identifies macro projects for: the reconversion of industrial areas in crisis through the Bioeconomy; the creation of territorial supply chains at the service of national multiproducts and multi-input biorefineries; the transformation of Italy in the first country to- wards zero organic waste sent to landfills with its complete reuse as compost for soil fertility, biogas, chemical substances and materials. 17 For further information click on the following NOP website link the mise.gov.it 37

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES 5.2 EU LEGISLATIVE FRAMEWORK instance, with priority criteria and award mechanisms. In this framework, the promotion of sustainable pro- The role of agricultural policies in supporting Bioecon- duction intensification, the development of biocosmet- omy. Within the framework of the European strategy on ics, nutraceuticals, animal feed, biofertilizers (organic Bioeconomy, a close integration between EU sectoral fertilization of soils through digestate and compost), policies - mainly industry, circular economy, climate bioproducts and biomaterials (green chemistry, con- and energy and agriculture - is an essential element struction, etc.) are included, as well as the growth of to cope with global EU goals. As agriculture plays a key bioenergy and advanced biofuels. role in EU Bioeconomy, accounting for 3/4 of occupation and 2/3 of turnover, new synergies with current policy The European Forest Strategy of 2013, updated in 2018, tools and CAP measures are expected to unlock Bio- represents the reference framework and European di- economy potential in rural, coastal as well as in urban rection for forest actions and interventions carried out, areas. In this context of CAP post 2020, the definition of in various capacities, by the EU and its Member States. the new National Strategic Plan is a huge opportunity. The multifunctional role of forests is promoted and the Local and regional Bioeconomy value chains are con- principles of Sustainable Forest Management and cas- solidated realities in Italy and the challenge of the new cade use of wood products are implemented. The role CAP is to find appropriated tools and measures sup- of forests in mitigation and adaptation policies to cope porting them while promoting the creation of the new with the consequences of climate change is reinforced. ones in a long period perspective. It’s not a completely The strategy promotes the adoption of measures aimed novel pathway and many actions are still working on at increasing sustainable management and the use and this direction in the local development strategies of recycling of forest products to increase the develop- current Rural Development Plans, such as Cooperation ment of an effective Bioeconomy and stimulate an offer measures and LEADER approach, but also support for of renewable and environmentally compatible raw ma- young farmers to promote diversification toward extra terials, support the territorial economic development, agricultural activities. Local development and diversi- employment, the supply of goods and services to citi- fication are key concept enhancing the role of agricul- zens and the safeguarding of environmental resources. ture for the development of a national Bioeconomy plan and - focusing on “green architecture” of the new CAP Circular Economy Package. In December 2015, the EU - many opportunities for farmers can arise implement- adopted the Circular Economy Package “Closing the ing dedicated actions and strategies aimed at encour- loop - An EU action plan for the Circular Economy”18 aging the reuse of agricultural waste or byproducts, for defining ambitious targets and a timeline to reduce the 18 ec.europa.eu 38

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES pressure on natural resources and boost the market (mitigation) is given by the Climate and Energy Pack- for secondary raw materials. The Circular Economy age19 by 2030, that strengthens the Paris agreement package introduced specific economic instruments which entered into force in November 2016, as well as and promoted industrial symbiosis, incentivizing other the 2050 Low-Carbon Economy20. With regards to the mechanisms to reduce future waste generation under second pillar (adaptation), in 2013 the EU adopted the a circular Bioeconomy philosophy (e.g. design for recy- European Adaptation Strategy21 that, among other ob- cling, reduced packaging). jectives, promotes adaptation measures in key vulner- able sectors including green infrastructure and coastal Marine Strategy Framework Directive D.lgs n. 190/2010 zone management to increase the resilience of urban, (MSFD). The aim of the Directive is to achieve Good En- rural and coastal areas with respect to climate change vironmental Status (GES) for the EU’s marine waters by and other environmental forcing compromising an- 2020 and to protect the resource base upon which ma- thropic areas adaptation and livability. rine-related economic and social activities depend. The Marine Strategy is the principal instrument to establish Directive 2008/98/EC on waste (Waste Framework Di- and promote an approach founded on sustainable de- rective). The Directive aims at setting the basic concepts velopment based on preserving and protecting marine and definitions related to waste management, explaining biodiversity and finding solutions to current problems when waste ceases to be waste and becomes a second- such as marine litter, pollution from contaminants, and ary raw material (so called end-of-waste criteria), and the sustainability of fisheries. how to distinguish between waste and byproducts. The Directive clearly establishes that bio-based recyclable Climate change strategy is a big challenge for the me- products and compostable bio-degradable products rep- dium and long term future. In the meantime, it requires resent an opportunity to foster a sustainable bio-econo- the transformation of the energy system in order to re- my and decrease the Union’s dependence on imported duce GHG emissions into the atmosphere by increasing raw materials. To this aim further research and innova- the share of clean and renewable energy, as well as the tion should be stimulated to substitute fossil fuel-based reduction of the energy intensity of the overall system. feedstock with renewable resources. The Directive in- On the other hand, it implies increasing the resilience troduces the “extended producer responsibility”, and its and adaptive capacity to cope with climate change im- amendment issued on 30 May 2018 (Directive 2018/851)22 pacts. The EU legislative framework for the first aspect includes three new recycling and recovery targets: 19 ec.europa.eu 20 ec.europa.eu 21 eur-lex.europa.eu 22 eur-lex.europa.eu 39

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES ĔĔby 2025, the preparing for re-use and the recycling Against this background and within the framework of the of municipal waste shall be increased to a mini- Lead Market Initiative, introduced in 2006 to boost the mum of 55% by weight; market uptake of bio-based products, the European Com- mission issued a number of standardization mandates to ĔĔby 2030, the preparing for reuse and the recycling the European Committee for Standardization (CEN): of municipal waste shall be increased to a mini- mum of 60% by weight; ĔĔM/429 for the elaboration of a standardization pro- gramme for bio-based products; ĔĔby 2030, the preparing for reduction of 50% in food waste, in line with the 2030 Agenda for sustainable ĔĔM/430 on bio-polymers and bio-lubricants; development; ĔĔM/491 on bio-solvents and bio-surfactants; ĔĔby 2035, the preparing for reuse and the recycling of municipal waste shall be increased to a mini- ĔĔM/492 for the development of horizontal standards mum of 65% by weight. for bio-based products. 5.3 STANDARDS, CERTIFICATION AND As part of the EU mandate M/429, the CEN technical LABELS committee CEN/TC411 was created in 2011 with the aim of covering horizontal aspects of the Bioeconomy, in- Along with directives, strategies and policy packages, cluding a consistent terminology, methods for deter- standards, certifications and labels are valuable reg- mining bio-based content in a product, application of ulatory tools which can support the establishment of a Life Cycle Assessment (LCA) and sustainability of bio- sustainable bio-based economy. Sustainability standards mass used, and guidance on the use of existing stand- set the minimum requirement in terms of principles, cri- ards for the end-of-life options. Three more CEN Tech- teria and indicators to assess sustainability. Certification nical Committees deal with specific bio-based products schemes show that a product complies with such stand- and applications. Overall, four Technical Committees ards. Finally, a label (or eco-label) is given as a result have been established with the following objectives: of a certification process, which communicates to the end user compliance with predefined sustainability re- ĔĔCEN/TC 411 - Horizontal standards. Standards quirements. Hence, standards, certifications and labels covering terminology, bio-based content determi- support innovation and create markets for bio-based nation, LCA, sustainability criteria, end-of-life op- products by overcoming perceived uncertainty about the tions, Requirements for B2B communication, Re- products’ properties and communicating their benefits. quirements for B2C communication (Mandate 492) 40

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES ĔĔBio-solvents. Standards covering requirements 5.4 ITALIAN LEGISLATION and test methods (Mandate 491) The Environmental Annex to the Stability Law 2014 ĔĔCEN/TC 276 - Bio-surfactants. Standards covering «Measures for promoting the green economy and limit- requirements and test methods (Mandate 491) ing the excessive use of natural resources»23 defines the important milestones for future Italian environmental ĔĔCEN/TC 19 - Bio-lubricants. Standards covering strategies. The main focus is on the green economy and recommendation for terminology, determination of the circular economy, in particular through: Green Pub- aerobic biological degradation and criteria and re- lic Procurement (GPP) with environmental minimum quirements for bio-lubricants (Mandate 430) criteria for new purchases by the public sector defined also by Labelling and Certifications (Emas, Ecolabel, ĔĔCEN/TC 249 - Bio-polymers. Standards covering Environmental Footprints, Made Green in Italy); incen- terminology, determination of bio-based carbon tives for the purchase of post-consumption materials, content, template for reporting (Mandate 430). the management of specific waste fractions (including composting) and incentives to increase the share of col- The new National Forest Strategy, foreseen by the Art. lected waste; creation of a Natural Capital Committee, 8, Com. 1, of the new Consolidated Law on forests and that can provide data on natural biomass consumption forestry chains (TUFF - Legislative Decree 3 April 2018 and monitor the impact of public policies on natural re- n. 34), updates the 2008 sector strategy (Framework sources and ecosystem services conservation; the es- Program for the national forest sector) and proposes to tablishment of a system of Payment for Ecosystem and build a shared and far-sighted strategic vision for the Envi-ronmental Services and the production of a Cata- management, protection and enhancement of the her- logue of environmentally friendly and harmful subsidies. itage and forest sector. Consistent with the European indications and international commitments signed by Specifically, the Law establishes that, to ensure the the Italian Government, it presents itself as a new tool achievement of the social, economic and environmen- for sharing and implementing strategic proposals on tal goals coherent with the financial and budgetary an- socio-economic development and environmental pro- nual planning, every year, the Committee sends to the tection, paying particular attention to the role of forests Presidency of Council of Ministers and to the Ministry and its products in the Bioeconomy. of Economy and Finance a Report on the State of the Natural Capital in Italy. Two editions of the Report have 23 gazzettaufficiale.it 41

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES been released in 2017 and 2018 respectively24. The aim 3. SDG8 - Promote sustained, inclusive and sustain- of the Reports is to provide environmental informa- able economic growth, full and productive employ- tion and data expressed in both physical and monetary ment and decent work for all. units and monitor the implementation, effectiveness and efficiency of policies and actions in order to pro- 4. SDG9 - Build resilient infrastructure, promote in- tect the environment as well as the state of the envi- clusive and sustainable industrialization and foster ronment and the Natural Capital. At the same time, the innovation. first edition of the Catalogue of environmentally friend- ly and harmful subsidies25 has been released in 2016 by 5. SDG12 - Ensure sustainable consumption and pro- the Italian Ministry of the Environment. The Catalogue duction patterns. analyses the subsidies by sector: agriculture, energy, transport, VAT and other subsidies, considering both 6. SDG14 - Conserve and sustainably use the oceans, seas fiscal expenditures and direct subsidies, with reference and marine resources for sustainable development. to the financial effect in 2016.

7. SDG15 - Protect, restore and promote sustainable One of the most important aspects of the Environmen- use of terrestrial ecosystems, sustainably manage tal Annes was the update of the National Sustainable forests, combat desertification, and halt and re- Development Strategy, built upon the 2030 Agenda for verse land degradation and halt biodiversity loss. Sustainable Development adopted by the UN in Sep- 26 tember 2015. Among the 17 Sustainable Development Taking into account the principles of the Agenda 2030 and Goals (SDGs) of the UN agenda, some of them are the SDGs, the National Sustainable Development Strate- strictly related to the Bioeconomy: gy27 defines a set of strategic choices and national objec- tives divided in six areas28. A preliminary list of implemen-

1. SDG2 - End hunger, achieve food security and im- tation tools has been identified in a wide and open process proved nutrition and promote sustainable agriculture. of consultation and associated to each of the six areas. The strategic choices related to the Bioeconomy are:

2. SDG7 - Ensure access to affordable, reliable, sus- tainable and modern energy for all. 24 minambiente.it and minambiente.it 25 minambiente.it 26 sustainabledevelopment.un.org 27 Approved by CIPE resolution no. 108 of 22 December 2017 28 The 5 Ps of the Agenda 2030 (People, Planet, Prosperity, Peace and Partnership) and the Sustainability Vectors 42 5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES People: NAP aims to spread and implement nationwide the

1. Fighting poverty and social exclusion, eliminating adoption of sustainable purchases in Italy. territorial differences.

2. Promote health and wellbeing. The above mentioned Environmental Annex estab- lished, from 2016, the compulsory commitment for the Planet: Italian Public Administration to the Code. Italy thus be-

1. Halt the loss of biodiversity. came the first country in the world to adopt such an ob-

2. Ensure the sustainable management of natural re- ligation. The new Code of Public Contracts31 has further sources. reinforced the statement by defining more specifically

3. Create resilient communities and territories, pre- the Environmental Minimum Criteria (EMC) for the el- serve landscapes and cultural heritage. igibility of applicants to participate in public tenders. Since 2011, a number of Decrees from the Ministry of Prosperity: Environment, Land and Sea have been issued to define

1. Fund and promote sustainable research and inno- EMC by commodity category. vation.

2. Ensure sustainable production and consumption With reference to waste, legislative decree 152/2006 patterns. sets the same 65% target on municipal waste as the

3. Decarbonize the economy. EU within the Circular Economy package. The “Na- tional Program for Waste Reduction”32 also considers The Green Public Procurement (GPP) National Action the target of 50% share of “green purchases” by the Plan (NAP) document outlines the strategy for the dif- 29 public sector, and defines specific measures for biode- fusion of GPP in Italy, the commodity categories, the gradable waste, valorization of agro-industry byprod- reference environmental targets to be attained -both ucts and minimizing food waste. Specifically, regarding qualitative and quantitative - and the general method- composting, the recent Decree of Ministries Council ological aspects. Presidency on 7 March 201633 defines the requirements for the Italian regions in terms of organic waste to be Based upon the Code of Public Contracts , the GPP 30 treated through composting. 29 Approved through Interministerial Decree 11 April 2008 and updated with the Decree 10 April 2013 30 D. Lgs. 12 April 2006, n. 163 31 Decree 18/04/2016, n. 50 32 minambiente.it 33 gazzettaufficiale.it 43

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES The updates of the “National Energy Strategy”34 and the Good Environmental Status for the Italian marine the “National Plan for Climate and Energy”35 provide waters within a sustainable development perspective. the framework within which the different sources of DM 17/10/2014 specifies the requirements and targets energy will develop in order to achieve the targets on necessary to achieve the GES, whilst the DM 11/02/2015 GHG emission reduction and renewable energy share. defines the indicators associated with the GES and reg- In addition, Italy has adopted a “National Adaptation ulates the drawing up of the monitoring programs nec- Strategy” and is putting into place the “National Ad- 36 essary to evaluate it. aptation Plan”. The Bioeconomy can play a significant role in both senses, in terms of providing clean energy 5.5 FUNDING PROGRAMMES sources and ensuring a long-term conservation of nat- ural resources and ecological systems, also through Many programs at EU, national, regional and local lev- nature-based solutions. el can fund and contribute to regulating Bioeconomy ac- tions. However, it is necessary to improve the integration The National Biodiversity Strategy (NBS), adopted in of programming in a common strategic framework and October 2010, aims to merge and integrate biodiver- strengthening the capability of financial mechanisms to sity conservation targets and the sustainable use of ensure the long term stability of bio - investments - beyond natural resources within sectoral policies, while the the programming period of public administration budgets. National ratification of Nagoya Protocol, on Access to Genetic Resources and the Fair and Equitable Sharing This function should be performed by the Cohesion of Benefits Arising from their Utilization, is still in pro- Policy Funds that in the current programming period gress (although in 2014 the EU Regulation 511/2014 “on (2014-2020) make resources available along seven (plus compliance measures for users of the Nagoya Protocol three) years in thematic objectives and investment pri- Arising from their Utilisation in the Union“ entered in orities consistent with the Bioeconomy development37. force at EU level). Cohesion Policy Funds, according to their rules, are The National Marine Strategy D.lgs n. 190/2010 was therefore allowed to support investments structured enacted to transpose the Marine Strategy Framework and amortized over the medium to long term by in- Directive at national level and with the aim of achieving tegrating and stabilizing resources from the ordinary 34 Published in 2017 mise.gov.it 35 In accordance with EU legislation, Italy submitted the Plan proposal to the Commission on 8 January 2019. It was subsequently opened on the dedicated portal energiaclima2030.mise.gov.it a public consultation closed on 5th May. The final text will be published within 2019 36 minambiente.it 37 For further information click on the following European Commission website link ec.europa.eu 44

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES national policy, in order to create a funding matrix in The table below illustrates the funding opportunities which programming and financial needs are blended. opened up by the Cohesion Policy resources for the Bi- oeconomy in Italy in 2014-2020 period. The European Agricultural Fund for Rural Develop- ment (EAFRD), for instance, focuses on new value In the next programming period (2021-2027) Bioecon- chains based on the smart and integral use of agro omy investments will still be able to benefit from the waste and specialized crops for industrial uses to be resources of the cohesion policy that will strongly focus grown on marginal lands, creating the necessary inter- on the thematic objectives Smarter Europe and Green- face for agro-energy and bio-based industries. Region- er, carbon free Europe: 65% to 85% of European Re- al EARDF programs identify also specific KETs (green gional Development Fund and Cohesion Fund resourc- biotechnologies and “omics”, precision farming, nano- es will be allocated to these priorities38. 6 technologies) such as drivers for innovation and com- petitiveness of local systems. 38 See the EU Commission brochure “Regional development and cohesion beyond 2020: the new framework at a glance” ec.europa.eu 60% 6 Italian Budget for Cohesion Policy in the programming period 2014-2020 Total resources in million EUR 125.310,96 (EU and National contributions) 32% European Structural and Investment Funds (ESIFs) European Territorial Cooperation programmes 6% Fund for European Aid to the Most Deprived (FEAD) 1% 1% Complementary Programmes Action Plans for Cohesion Italian Development and Cohesion Fund (FSC) Source: Agency for territorial cohesion elaboration on data from 2014-2020 Partnership Agreement 45

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES At European level, a very important role could be played The new “Horizon Europe” should allocate about €10 also by direct funding grants from the European Com- Bln for the Global Challenge “Food, Bioeconomy, Nat- mission or its executive agencies, such as Horizon 2020 ural Resources, Agriculture and Environment” Cluster that with its three pillars - Excellent Science, Industrial 5, in the 7 years 2021-2017. Leadership, and Societal Challenges - and two specific objectives - Spreading Excellence and Widening Partic- Other opportunities could be supported also by nation- ipation and Science with and for Society - which add an al and regional ordinary budget, tax incentives, such as important funding system (EUR 77.028 billion39). The so- Patent boxes, and private investments. cietal challenge 2 “Food Security, Sustainable Agricul- ture and Forestry, Marine, Maritime and Inland Water At national level, the new Industry 4.0 plan41 provides Research and the Bioeconomy” specifically addresses opportunities for enterprises also of the Bioeconomy the main topics of Bioeconomy (“using better what we domain for enhancing research, innovation and com- already use” and “using well what we don’t use yet”) petitiveness. The core of Industry 4.0 (I 4.0) is to con- with a total budget amounting to EUR 3.851 billion40, in nect physical and digital systems, complex analyses of the period 2014-2020. Some priorities of the Bioecono- big data and real-time settings through use of smart my are also supported by the societal challenge 3 and machines, inter-connected and connected to internet. 5 and the NMPB pillar of Horizon 2020. Another part The plan provides intense financial support to enter- of the Horizon 2020 budget available for Bioeconomy is prises through hyper-depreciation and super-depre- implemented by one of the seven public private partner- ciation schemes (an increase in the rate of deprecia- ships (PPPs) operating under Horizon: the Bio-Based tion for innovative digital investments), tax credit for Industries (BBI) Joint Undertaking. It aims to develop research and development and innovation expenditure, new bio-refining technologies to sustainably transform Venture Capital and Start-ups. The plan also provides renewable natural resources (waste, agriculture resi- financial support for the implementation of public-pri- dues) into bio-based products, materials and fuels. vate Competence Centers, aimed to offer formation and orientation services for enterprises. 39 Estimated final amount in million euro and in current prices (2013) - ec.europa.eu 40 See note n. 19 41 sviluppoeconomico.gov.it 46

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES The Bioeconomy investments will benefit not only from ĔĔincentives to support research and development the incentive measures activated in past years (eg en- projects for accompanying the transition processes ergy efficiency, the SME Fund) but also from the new towards circular economy, based on 2020 resourc- investment support initiatives provided, on the pro- es availability of the Development and Cohesion posal of the Ministry of Economic Development, by the Fund and the Revolving Fund for enterprises, in a budget law for 201942 as for example the Venture Capital way consistent with the principles, criteria and lim- Fund of Funds , the National Innovation Fund as well 43 44 its set by EU Regulation no. 651/2014. as from a greater commitment to research and devel- opment activities related to Sustainable Development A very significant role could be played by National Tech- thanks to the creation of the Mediterranean Techno- nological Clusters as defined by the Italian Ministry for pole Research Institute . 45 Education, University and Research in the National Re- search Plan 2015-2020. Clusters have been set up to Further incentive measures will be implemented create permanent dialogue platforms between public thanks to the provisions of the Growth Decree recently research network and enterprises. Clusters directly approved by the Council of Ministers: linked to Bioeconomy (Agrifood46, Green Chemistry47, Smart Factory48, Blue Growth49 and Energy) are priority ĔĔ the Plan for Important Investment in the Special areas of intervention in the framework of the National Economic Zones which provides for carrying out a Research Plan. specific financial instrument that enhances direct and indirect investments, in order to better exploit the attractiveness of new investments and stimulate the development in areas on which the SEZs insist. 42 Law 30 Decembre 2018, n. 145 43 Law 145/2018 article 1, paragraph 206-209 44 Law 145/2018 article 1, paragraph 116-121 45 Law 145/2018 article 1, paragraph 732-737 46 clusteragrifood.it 47 clusterspring.it 48 fabbricaintelligente.it 49 clusterbig.it 47

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES MAJOR EUROPEAN BIOECONOMY R&I PROJECTS COORDINATED BY ITALY FUND- ED IN THE FRAMEWORK OF HORIZON2020 (SOCIETAL CHALLENGES 2, 3, 5) AND RELATED PUBLIC PRIVATE PARTNERSHIPS AND INITIATIVES (2014-2018) PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Agricolus Decision Agricolus DSS 15/02/2016 TEAMDEV SRL SME-1 Support System Unique radar-drone AGRI-DONE 16/05/2016 ADANT SRL SME-1 used for subsurface water detection for precision agricul- tural irrigation A resource-efficient AGS 17/12/2015 POLIBIOTECH SRL SME-1 granulation process for advanced formu- lation of any com- pound in food and pharma production Antibiotic resist- ARMeD_free 22/01/2017 SACCO SRL SME-1 ance-free meat and dairy products Automated system AUTOMEATIC 01/05/2017 GRASSELLI SPA SME-1 for packaging fresh meat with reduced waste/giveaway, processing time, human involvement and contamination New bio-based food BioBarr 05/05/2017 TECNOALIMENTI JTI-BBI-RIA BBI- packaging materi- S.C.P.A. 2016-R05 als with enhanced barrier properties - BioBarrier 3Bee Hive-Tech 3Bee Hive-Tech 31/01/2018 3BEE SRL SME-1 (CLOSED) BIOPEN BIOPEN 27/04/2017 CIAOTECH Srl JTI-BBI-CSA BBI- 2016-S03 48

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Mobilization of a BIOVoices 04/10/2017 AGENZIA PER LA CSA BB-05-2017 plurality of voices PROMOZIONE DELLA and mutual learning RICERCA EUROPEA to accelerate the Bio-based sector BLUEMED BLUEMED 27/09/2016 CONSIGLIO CSA BG-13-2016 NAZIONALE DELLE RICERCHE Breeding for Resil- BRESOV 27/04/2018 UNIVERSITÀ DEGLI RIA SFS-07-2016- ient, Efficient and STUDI DI CATANIA 2017 Sustainable Organic Vegetable produc- tion Cost-effective CO2 CELBICON 04/02/2016 POLITECNICO DI RIA ISIB-06-2015 conversion into TORINO chemicals via com- bination of Capture, ELectrochemical and BI-ochemical CONversion tech- nologies Controlling mIcRo- CIRCLES 05/10/2018 ALMA MATER IA LC- biomes CircuLa- STUDIORUM - SFS-03-2018 tions for bEtter food UNIVERSITÀ DI Systems BOLOGNA COMPostable cap- COMPSULE 28/10/2015 POINT PLASTIC SRL SME-1 SULE for instant coffee delivery based on an in- novative chemical functionalization of biobased plastics Valorisation of corn CORNposite 27/02/2016 CORN VALLEY SRL SME-1 processing byprod- ucts into plastic bio-composites Optimum, sustaina- DryCoolerSeeds 25/11/2015 MARCOLD GROUP SME-1 ble solution for seed drying and conser- vation 49

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Optimum, sustaina- DryCoolerSeeds 23/02/2018 MARCOLD GROUP SME-2 ble solution for seed drying and conser- vation Design of an ECO-LOGIC 22/07/2015 SOCIETÀ AGRICOLA SME-2 agricultural green- GREEN FARM SERENISSIMA S.S. house for intensive growing of microal- gae in fresh / sea water with a syngas production plant and organic farming of chickens and pigs outdoors Stacking of eco- EcoStack 24/07/2018 UNIVERSITÀ DEGLI RIA SFS-28-2017 system services: STUDI DI NAPOLI mechanisms and FEDERICO II interactions for optimal crop pro- tection, pollination enhancement, and productivity A feasibility study EggPlant 29/02/2016 EGGPLANT SOCIETA SME-1 to investigate and A RESPONSABILITA verify the commer- LIMITATA cial and industrial viability of a waste- water processing solution to generate bioplastics from agri-food and mu- nicipal wastewater sources Establishing a Mul- EMBRACED 03/05/2017 Fater S.p.A. JTI-BBI-IA-DEMO ti-purpose Biorefin- ery for the Recy- cling of the organic content of AHP waste in a Circular Economy Domain Food treatment pro- EMILK 20/08/2015 LASERLAM SRL SME-1 cess based on high voltage nanopulsed electric discharges in liquid phase 50

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Effective Man- EMPHASIS 19/02/2015 UNIVERSITÀ DEGLI RIA SFS-03a-2014 agement of Pests STUDI DI TORINO and Harmful Alien Species - Integrated Solutions Enhance New ENABLING 05/10/2017 FEDERUNACOMA SRL CSA RUR-10- Approaches in UNIPERSONALE 2016-2017 BioBased Local In- novation Networks for Growth Separation, frac- EXCornsEED 26/04/2018 UNIVERSITÀ DEGLI JTI-BBI-RIA tionation and STUDI DI ROMA LA BBI.2017.R4 isolation of biologi- SAPIENZA cally active natural substances from corn oil and other side streams Flagship demon- FIRST2RUN 10/06/2015 NOVAMONT SPA BBI-IA-FLAG stration of an integrated biore- finery for dry crops sustainable ex- ploitation towards biobased materials production Linking genetic G2P-SOL 05/02/2016 ENEA RIA SFS-07b-2015 resources, genomes and phenotypes of Solanaceous crops Green Aquaculture GAIN 27/04/2018 UNIVERSITÀ CA’ RIA SFS-32-2017 Intensification in FOSCARI VENEZIA Europe First industrial use GeoFood 21/05/2016 CIBAS DI POLI FABIO SME-1 of bio and ecocom- & C SAS patible geopolymers produced from metakaolin to man- ufacture tanks for wine, beer, vinegar and olive oil produc- tion and storage via 3D printing tech- nology 51

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Drone-based inte- GIDROM 26/08/2015 ABO DATA SRL SME-1 grated monitoring system for early detection of crop pathology and pest control in high tech greenhouse agri- culture Smart cuvette and I-Cuvette 25/11/2017 ISS BIOSENSE SRL SME-1 portable Time-Re- (CLOSED) solved FRET for fast analysis of milk Jellyfish Barge - A JFB 20/05/2015 PNAT SRL SME-1 floating greenhouse Development of LANDSUPPORT 13/04/2018 UNIVERSITÀ DEGLI RIA RUR-03-2017 Integrated Web- STUDI DI NAPOLI Based Land Deci- FEDERICO II sion Support Sys- tem Aiming Towards the Implementation of Policies for Agri- culture and Envi- ronment Mobile wireless MEDIuM 19/11/2015 INFORMATICA SYSTEM SME-1 Device microcanti- S.R.L. lever-based bio- sensor to identify and measure the aflatoxin B1 in ani- mal food and M1 in the milk-chain A sustainable or- MICRO4BEE 22/02/2016 MICRO4YOU SRL SME-1 ganic solution to the decline of bees Modelling and MIDA 12/05/2017 METACORTEX Srl SME-1 Imaging Develop- (CLOSED) ment for precision Agriculture 52

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Microbial Uptakes MUSA 10/05/2017 CONSIGLIO RIA for Sustainable NAZIONALE DELLE management of RICERCHE major bananA pests and diseases Integrated and inno- MycoKey 09/02/2016 CONSIGLIO RIA SFS-13-2015 vative key actions NAZIONALE DELLE for mycotoxin man- RICERCHE agement in the food and feed chain Nite Carbon Nano- NCN 05/02/2018 HYDRA SRL SME-1 clusters, a natural antioxidant for the food industry made from agricultural waste A Revolutionary, New Gluten 16/10/2016 NEW GLUTEN WORLD SME-2 Safe and Cost-ef- World S.R.L. fective Industrial Process for Gluten Detoxification in Cereals Automatic Hydraulic Novel Jack 09/11/2017 SIMOL SPA SME-1 Jack with improved (CLOSED) capacity, safety and efficiency for agri- cultural implements Vegetable ozone O3MET 15/09/2015 MET s.r.l. SME-1 therapy for the de- fence of greenhouse crops Advanced solutions OLEUM 08/07/2016 ALMA MATER RIA SFS-14a-2014 for ensuring the STUDIORUM - overall authenticity UNIVERSITÀ DI and quality of olive BOLOGNA oil From plants for Plants for Plants 04/12/2015 LANDLAB SRL SME-1 plants: enhancing crop potential and resilience through reliable new gener- ation biostimulants 53

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Pest Organisms POnTE 29/10/2015 CONSIGLIO RIA SFS-03a-2014 Threatening Europe NAZIONALE DELLE RICERCHE Professional sup- ProBIO 16/02/2015 AZIENDA SPECIALE CSA ISIB- port to the uptake (CLOSED) INNOVHUB - STAZIONI 08b-2014 of Bioeconomy RD SPERIMENTALI PER results towards L’INDUSTRIA market, further research and policy for a more com- petitive European Bioeconomy PROVIding smart PROVIDE 27/05/2015 ALMA MATER RIA ISIB-01-2014 DElivery of public STUDIORUM - goods by EU agri- UNIVERSITÀ DI culture and forestry BOLOGNA Increasing grain QUALIGRAIN 01/10/2014 LA SANFERMESE SpA SME-1 quality through (CLOSED) advanced oxidation treatment during storage Fermentation pro- RAPSODY 27/01/2015 METHODO CHEMICALS SME-1 cesses for func- (CLOSED) SRL tional foods from RAPeseed, Sun- flower and Other EU matrices Devoted to Young animals. Zero-miles model boosting safety and competitiveness of livestock sector A Novel Double RA-RAKE 28/06/2017 REPOSSI MACCHINE SME-2 Wheel Rake Ma- AGRICOLE SRL chine to provide high quality fodder and high operation- al speed A Novel Double RA-RAKE 19/11/2016 REPOSSI MACCHINE SME-1 Wheel Rake Ma- AGRICOLE SRL chine to provide high quality fodder and high operation- al speed 54

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Novel Products for ReInvent 04/05/2018 CENTRO RICERCHE JTI-BBI-IA-DEMO Construction and FIAT SCPA BBI.2017.D5 Automotive In- dustries Based on Bio Materials and Natural Fibres RESources from RES URBIS 01/01/2017 UNIVERSITÀ “LA RIA CIRC 05-2016 URban BIo waSte SAPIENZA” DI ROMA Innovative oxy- RiCaMo 22/06/2016 ENTER S.R.L. SME-2 gen-free wine (CLOSED) bottling process RLTProFood - Re- RLTProFood 02/09/2015 IODA SRL SME-1 mote Lighting Tech- nology for process- ing and production of food On-field innovative SAFEMILK 31/01/2017 IDP SRL SME-1 system to detect very low concentra- tions of aflatoxins in milk Novel Ozone and SCHOCKO3 25/05/2015 FIORDELISI SRL SME-1 Thermal Shock Conservation Pro- cess for Vegetables A compact, un- Sea Litter Critters 12/02/2016 IRIS SRL SME-1 manned, renewa- bles-powered and self-sufficient ves- sel able to pick up marine litter and to treat it on board for volume reduction and energy recovery Short supply chain SKIN 23/09/2016 UNIVERSITÀ DEGLI CSA RUR - 10- Knowledge and In- STUDI DI FOGGIA 2016 novation Network 55

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Scale-up of SMART-PLANT 01/06/2016 UNIVERSITÀ IA WATER 1b-2015 low-carbon foot- POLITECNICA DELLE print material re- MARCHE covery techniques in existing wastewater treatment plants Solaris energy SOLARIS 09/08/2017 IDROEDIL SRL SME-2 tobacco for the cre- ation of a European sustainable biojet fuel value chain Sustainability Tran- STAR-ProBio 28/04/2017 UNIVERSITÀ DEGLI RIA BB-01-2016 sition Assessment STUDI DI ROMA and Research of UNITELMA SAPIENZA Bio-based Products Detergent free Steammatic 30/04/2017 REA STEAM SME-1 steam cleaning CLEANING SRL system for modular conveyor belts in the food industry Submersible Ten- SubCage 17/12/2015 REFA MED SRL SME-1 sion Leg Fish Cage for Mariculture in Unsheltered and Offshore Areas Application of high TENBRIN 14/11/2016 RI-LAVO SRL SME-1 power ultrasounds (HPUs) to improve the sustainability in meat TENderize and BRINe processes Development and The Blue Growth 03/05/2018 RINA CONSULTING IA BG-04-2017 demonstration of an Farm SPA automated, modular and environmentally friendly multi-func- tional platform for open sea farm installations of the Blue Growth Industry 56

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC A novel and inte- TomRes 28/04/2017 UNIVERSITÀ DEGLI RIA SFS-01-2016 grated approach STUDI DI TORINO to increase multi- ple and combined stress tolerance in plants using tomato as a model Insect-borne TROPICSAFE 28/04/2017 ALMA MATER RIA SFS-11-2016 prokaryote-asso- STUDIORUM - ciated diseases in UNIVERSITÀ DI tropical and sub- BOLOGNA tropical perennial crops Innovative tag T-TAG 28/11/2016 SCRIBA SME-1 system providing af- NANOTECNOLOGIE fordable time-tem- SRL perature quality control of individual temperature sensi- tive products Innovative bioma- VegeaTextile 03/04/2018 VEGEA SRL SME-2 terials production from wine industry waste Virome ngs anal- VIROPLANT 27/04/2018 CONSIGLIO RIA SFS-17-2017 ysis of pests and NAZIONALE DELLE pathogens for plant RICERCHE protection Xylella fastidiosa XF-ACTORS 11/10/2016 CONSIGLIO RIA SFS-09-2016 Active Containment NAZIONALE DELLE Through a multidis- RICERCHE ciplinary-Oriented Research Strategy Partnership for 4PRIMA 31/05/2016 MINISTERO CSA SC5-12-2016 Research and Inno- DELL’ISTRUZIONE, vation in the Medi- DELL’UNIVERSITÀ E terranean Area DELLA RICERCA Brazil-EU Cooper- BECOOL 1/6/2017 ALMA MATER RIA SC3 LCE-22- ation for Develop- STUDIORUM - 2016 ment of Advanced UNIVERSITÀ DI Lignocellulosic BOLOGNA Biofuels 57

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Advanced sustain- BIO4A 01/05/2018 CONSORZIO PER IA SC3 LCE-20- able BIOfuels for LA RICERCA E LA 2016-2017 Aviation DIMOSTRAZIONE SULLE ENERGIE RINNOVABILI BIOmethane as BIOSURF 1/1/2015 ISTITUTO DI STUDI CSA SC3 LCE-14- SUstainable and (closed) PER L’INTEGRAZIONE 2014 Renewable Fuel DEI SISTEMI (I.S.I.S) - SOCIETÀ COOPERATIVA Building Research BlueBRIDGE 1/9/2015 CNR RIA environments fos- (closed) Infrastructure di tering Innovation, ricerca Decision making, Governance and Ed- ucation to support Blue growth Engineered micro- ENGICOIN 2018/01/01 IIT FONDAZIONE RIA NMBP bial factories for ISTITUTO ITALIANO DI BIOTEC-05-2017 CO2 exploitation in technological an integrated waste treatment platform de-FLuoridation FLOWERED 02/05/2016 UNIVERSITÀ DEGLI RIA SC5 WATER- technologies for STUDI DI CAGLIARI 5c-2015 imprOving quality of WatEr and agRo-an- imal products along the East African Rift Valley in the context of aDaptation to climate change FREE and open FREEWAT 02/12/2014 SCUOLA SUPERIORE CSA WATER- source software (Closed) DI STUDI 4a-2014 tools for WATer UNIVERSITARI E DI resource manage- PERFEZIONAMENTO S ment ANNA Innovative Meth- IMAGINE 1/3/2018 UMBRAGROUP SPA RIA SC3 LCE-07- od for Affordable 2016-2017 Generation IN ocean Energy 58

5. LEGISLATIVE FRAMEWORK, FUNDING MEASURES AND MARKET PULL MEASURES PROJECT PROJECT PROJECT PARTICIPANT LEGAL INSTRUMENT/ PROJECT TITLE SIGNATURE ACRONYM NAME FUNDING DATE SCHEME/TOPIC Increasing Social ISAAC 1/1/2016 AZZERO CO2 SRL CSA SC3 LCE-14- Awarness and AC- (closed) 2014 ceptance of biogas and biomethane DevelopMent AnD MADFORWATER 22/04/2016 ALMA MATER RIA SC5 WATER- application of inte- STUDIORUM - 5c-2015 grated technological UNIVERSITÀ DI and management BOLOGNA solutions FOR wasteWATER treat- ment and efficient reuse in agriculture tailored to the needs of Mediterranean African Countries Turning climate-re- MED-GOLD 30/10/2017 AGENZIA NAZIONALE RIA SC5-01-2016- lated information PER LE NUOVE 2017 into added value for TECNOLOGIE, traditional MEDiter- L’ENERGIA E ranean Grape, OLive LO SVILUPPO and Durum wheat ECONOMICO food systems SOSTENIBILE Marine Ecosys- MERCES 1/6/2016 SZN RIA SC5-07-2015 tem Restoration in Changing European Seas Managing crOp MOSES 26/05/2015 ESRI ITALIA SPA IA SC5 WATER- water Saving with (closed) 1a-2014 Enterprise Services Project Ô: demon- PROJECT O 08/05/2018 IRIS SRL IA SC5 - CIRC-02- stration of planning 2016-2017 and technology tools for a circular, integrated and sym- biotic use of water Urban metabo- URBAN_WINS 03/05/2016 COMUNE DI CREMONA RIA SC5 WASTE- lism accounts for 6b-2015 building Waste management Inno- vative Networks and Strategies 59 6 6 CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY The strategy aims at interconnecting the main Bioec- VISION onomy sectors, creating longer, more sustainable and locally routed value chains. a TO MOVE “from sectors to systems”... ...by i) multidisciplinary approaches aiming at foster the As a consequence, it would allow Italy to increase its integration of transformative technologies and practic- competitiveness and role in promoting sustainable es; ii) interconnecting effectively the main Bioeconomy growth in Europe and in the Mediterranean basin. It sectors, across sustainable value chains, embracing the promotes the integration of research and innovation production of bioresources (i.e., Agriculture, Livestock, needs and opportunities, policy, business, and cultural Aquaculture, Forestry, Marine systems) their process- attitude into a single systemic vision for the Bioecono- ing and valorization of final products (i.e. the food and my which is in line with the development model of the drinks industry, wood, paper, leather, textiles, chemical circular economy. A circular economy approach also and pharmaceuticals industries, and the energy sector), fosters sectorial integration in a long-term perspective. by leveraging traditional sectors deeply rooted in the ter- Looking at the overall long term objective, the strategy ritory, as well as the public and private stakeholders in defines some guiding principles and specific targets in local communities. the vision; then presents an analysis of problems and opportunities for each sub-sector and, in particular, b TO CREATE “value from local for their interconnections. As a result of this analysis, a biodiversity and circularity”... research agenda, and some support measures to over- ...by i) reversing progressive soil degradation and in- come obstacles are defined. volving the implementation of technologies and prac- tices enhancing carbon accumulation in soil; ii) val- GENERAL OBJECTIVE orizing the marine and rural biodiversity across new To increase current Italian Bioeconomy turnover (cur- values chains of quality food, feed, biochemicals and rently about EUR 330 billion/y) and jobs (about 2 M) by innovative materials, that will implement sustainable 15% by 2030, while increasing the level of circularity in and circular production models, but also through the the economy. regeneration of abandoned lands/industrial sites or the identification and exploitation of byproducts and bi- owastes, effluents and civil wastewater. 61

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY c TO MOVE “from economy to e TO PROMOTE THE “Bioeconomy in sustainable Bioeconomy” ... the Mediterranean area”... ...by i) respecting natural harvest cycles and regener- ...via the exploitation of initiative such as, PRIMA, ation growth rates, monitoring and evaluating organic BLUEMED, ENI ENPI INTERREG initiatives, as well as matter in soil; ii) -decarbonising agricultural and for- the macro-regional initiatives on blue growth EUSAIR estry systems through transformative technologies and WEST MED, aiming at a long-term coordination of and practices fostering multi-disciplinary approaches European and non-EU countries of the area towards R&I, to food, feed, bioproducts and soil regeneration; iii) de- flagship, training activities in the field of Bioeconomy. veloping new regenerative measures to optimise land Such trans-national synergies and complementarities use and improve soil quality such as the use of compost provide added value to regional, national and EU invest- in agriculture, as well as new policy measures and so- ments, while promoting Mediterranean primary produc- cio-economic models based on the symbiotic society ap- tion and industry within a perspective of enhanced social proach; iv) preserving ecosystem services also through cohesion and political stability, a healthier environment compensation measures and the limitation of pollution and new occupational opportunities. and waste generation; v) fostering the development of low-impact innovative products, biodegradable chemi- cals/materials/products in order to protect the quality of water and soil and to prevent marine litter issues; vi) promoting new models based on symbiotic society approaches in cooperation with social sciences and hu- manities, to spread knowledge on the Bioeconomy. d TO MOVE “from concept to reality”... ...via i) a more coherent political commitment towards the Bioeconomy; ii) efficient alignment between re- gional, national and EU policies through coordination of relevant stakeholders via the national technology clusters; iii) investments in targeted programs for R&I, flagship, education, training; iv) engagement in a pub- lic dialogue while increasing social awareness through the professional and efficient communication of the benefits of the Bioeconomy, and v) tailored actions for market development vi) also through the definition of standards and certifications. 62

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY 6.1 THE CHALLENGES NN PROBLEMS MM OPPORTUNITIES land-use planning. ĔĔ High presence of margin- ĔĔ A quite rich local biodiversity and Agriculture ĔĔ New business mod- al/abandoned/degraded agricultural ecosystem services to els for the diversi- lands in relation to climate be discovered, protected, valorized fication of rural in- change, urban and industri- through the empowerment of local comes, adding value to al facilities. communities. local production and products/ ĔĔ Use of virgin land to build ĔĔ Regional specificities appropriate for food and increasing the integration new industrial and urban implementing innovative multi-pur- with other economic sectors such as areas, reducing soil availa- pose cropping systems to regenerate bio-based industry. bility. marginal/abandoned/degraded land, ĔĔ Availability of underexploited agricul- and to create value for local rural ĔĔ Abandoning of rural areas tural, forestry and breeding residues communities. due to limited profitability and side streams with high potential of farms and unsatisfactory ĔĔ Innovative precision-farming and for the production of valuable bio- logistics services. breeding techniques, enabled by based chemicals, nutraceuticals, en- available digital services, allowing ergy. ĔĔ Weak and poorly organized for input reduction, sustainable and local value chains. ĔĔ Increased attractiveness of the agro- resilient intensification of agriculture food sector for the new generations, ĔĔ Price volatility and increas- while preserving biodiversity. thanks to novel professional and en- ing competition at world- trepreneurial opportunities within a ĔĔ New techniques available for mon- wide level. Bioeconomy perspective. itoring and modeling soil-organ- ĔĔ Lack of innovation in agri- ic-matter dynamics. ĔĔ Exploiting the role of agriculture (in- culture to respond to cli- cluding urban and peri-urban agri- ĔĔ Territory regeneration schemes mate change, water scarcity culture, indoor vertical agriculture) in based on low-input farming methods. and alien pests/plants. a circular bio-based society systemic ĔĔ Local crops/varieties available re- perspective, linking primary produc- ĔĔ Lack of effective communi- gionally and prone to be adapted to tion, ecosystems and human health cation, education and train- climate change and low-input culti- ing of farmers about new Legislative opening (European ferti- vations. ĔĔ business opportunities and lizer directive 27 March 2019) about innovation management. ĔĔ Novel satellite-based technology recovering and recycling of phospho- available for effective mapping of rus (sewage sludge, manure and food ĔĔ Lack of policies to protect abandoned, marginal and contami- waste) as fertilizer. farmers’ income in the cur- nated lands, thus enabling integrated rent value chains. 63

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY NN PROBLEMS MM OPPORTUNITIES ĔĔ Abandonment of forests belonging to national ĔĔ Availability of forest certification schemes Forest and regional heritage with consequent biodi- and Life Cycle Analysis practices for a versity depletion; more sustainable exploitation of valuable national wood and deriving materials, also ĔĔ Ecosystem degradation due to climate for the production of added value products and change; energy trought tailored biorefinery schemes; ĔĔ Lack of strategies for the management, ge- ĔĔ Availabilty of independent Sustainable Forest Management netic improvement and valorization of au- schemes for a tailored management and exploitation of forests; tochthonous forestry production; ĔĔ Availability of innovative techniques, based on digital services, ĔĔ Limited reliability and completeness of ex- enabling input reduction, sustainable and resilient intensifica- isting national statistics on forest resources, tion of forestry; including a National Agriculture and Forest Sink register; ĔĔ Availability of nature-based and eco-designed solutions (in- cluding new sustainable organic fertilizers and bio-pesticides) ĔĔ Insufficient integration with the national wood enabling the preservation of biodiversity, the implementation processing industry, which imports medium/ of low-impact management protocols; low quality/cost wood; ĔĔ Business innovation with local value chains deriving from for- ĔĔ Lack of education and training of forest com- est products, like mushrooms, truffles, herbs, cork etc. as a pany managers in new business opportunities. contribution to rural development opportunities. NN PROBLEMS MM OPPORTUNITIES Marine ĔĔ Unsustainable fishing and under- ĔĔ Environmentally safe practices for marine aquacul- Bioeconomy exploited marine aquaculture; ture (also offshore); ĔĔ Sea productivity adversely affect- ĔĔ High potential at local level for the construction of more ed by pollution (chemical pollut- robust aquaculture supply chains, also according to mul- ants, litter etc.), invasive species titrophic schemes; and climate changes; ĔĔ Potential for intensifying CO2 fixation by marine habitats; ĔĔ Increasing import of fish from ar- ĔĔ New emerging business models for connecting tourism to ecosystem val- eas with low environmental regu- orization; lation and monitoring; ĔĔ Unique landscape and cultural heritage of coastal areas as resource of ĔĔ Environmental pressure on local communities and worth to be preserved and valorized according to coasts stemming from tourism sustainable and integrated schemes; and recreation activities and ur- banization. ĔĔ Exploitation of marine bioenergy production potential. 64

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY NN PROBLEMS MM OPPORTUNITIES Food Rapidly growing global food demand (be- Wide availability of “typical/quality” food prod- ĔĔ ĔĔ industry tween +50 % and +100 %, according to the ucts (DOP, IGP, STG, etc.) to be valorized, pre- latest foresight studies) with increasing served and protected; pressure on farming systems; ĔĔ Large availability of food byproducts to be valorized ĔĔ Weak connection with the primary produc- through the production of food ingredients and feed, as well as tion sectors and small size and fragmenta- waste to be converted into biobased chemicals, materials, en- tion of supply value chains; ergy, fertilizers and compost; ĔĔ Low efficiency of food making chains with ĔĔ Availability of new emerging global markets seeking for safe high resource consumption and excessive and high quality foods; production of byproducts/ waste (≈15 M T/y); ĔĔ High potential for creation of new markets at global level, ĔĔ Inability to exploit byproducts and produc- thanks to the recognized Italian leadership in the sector; tion residues due to unsuitable terms and ĔĔ New Urban Food Systems to overcome the dichotomy between conditions set by national legislation; urban and peri-urban areas, with local food production and dis- ĔĔ High level of product counterfeiting and im- tribution of fresh and high nutritional value products; itations; ĔĔ Potential for developing alternative protein sources (insects, ĔĔ Social reluctance to change dietary behavior algae etc.) and novel food microbes utilizing pedoclimatic na- and reduce food-waste generation; tional areas and existing industrial infrastructures taking ad- vantage of climate change and anticipating novel food security ĔĔ High environmental impact of single use needs; plastics; ĔĔ Potential for the establishment of a permanent collaborarion ĔĔ Lack of coordination among the stakehold- among the National Technology Clusters representing three ers operating in the different sectors of Bi- key sectors of the Bioeconomy: CL.A.N. (Agrifood), Spring oeconomy. (Green Chemistry) and BIG (Blue Growth). 65

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY NN PROBLEMS biowaste (lack of knowledge of Biobased Limited and discontinuous accessibility to sustainable contaminants fate and of criteria ĔĔ industry non food feedstocks; to be fulfilled for waste to be ac- cepted and used by industry); ĔĔ Limited market for national biobased products, also due to their higher cost with respect to “petrol-based” ĔĔ Huge and risky investments needed products; for research and buildup of industrial flag- ship investments and infrastructures in the sector; ĔĔ Spread of products that do not comply to international standards and labeling on biobased and biodegrada- ĔĔ Short life and slow growth of startup companies due ble products, and insufficient clarity/transparency in to the lack of facilities for pre-industrial scaling-up the labeling; and competent regional poles for effective technology transfer; ĔĔ Lack of regulations and specific end- of- waste cri- teria regarding classification and use of industrial ĔĔ Fragmentation of standards and certification schemes in the biogas and biomethane production sector. 66

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY MM OPPORTUNITIES Biobased ĔĔ Large availability of agricultural, forestry and breed- industry ing residues and side streams with underexploited potential; ĔĔ Availability of former oil refineries/industrial sites that can be partially converted into biorefineries; ĔĔ Availability of a large network of biomethane produc- ĔĔ Availability of expertise and of already assessed lab ing facilities (mainly fed with agrifood biowaste and scale processes for the conversion of residues, by- municipal organic waste); products and side streams into biochemicals, food/ feed ingredients, biomaterials and high-quality or- ĔĔ Availability of new regenerative processes for clean- ganic fertilizers; ing polluted areas and engineering measures for the reconversion of abandoned industrial and urban sites, ĔĔ Availability of new emerging technologies for captur- promoting the valorisation of brownfields rather than ing and converting CO2 into fertilizers, chemicals and virgin land; polymers, thus enabling the lowering of GHS; ĔĔ Possible integration of wastewater purification plants ĔĔ Availability of methods for the valorization of stabilized with biorefineries for the integrated valorization of or- digestates from biorefinery and bioenergy plants, to ganic fraction introduced in and the activated sludge provide soils with assimilable organic carbon; generated by the plants and exploitation of potential ĔĔ Availability of abandoned/marginal lands for the pro- of production of biochemicals of anaerobic digestors; duction of autochthonous or planted industrial bio- ĔĔ Availability of efficient collection systems for organ- mass; ic waste and of large quantities of national biowaste ĔĔ Availability of successful case studies on biobased (i.e., Food industry byproducts and waste: ≈ 15 M T/y; products developed in Italy (i.e. compostable shopping agriculture residues: ≈ 10 M T/y; livestock effluents: bags/foodservice ware, biodegradable mulch film/bio- ≈ 150 M T/y; Wastewater sludge: ≈ 3 M T/y; Municipal herbicides/biolubricants) and price premiums for envi- organic fraction: ≈ 6.5 M T/y); ronmental sustainable products (Made green in Italy); ĔĔ Pioneering initiatives leveraging on on Bioeconomy ĔĔ Availability of prominent national collections of mi- “every-day products” for informing, educating and crobes (bacteria, yeasts, molds, fungi, algaes, etc, engaging urban communities in urban re-generation also from the sea), enzymes and genetically improved projects (e.g. BioCities); microbes of industrial interest; ĔĔ High potential of urban-Bioeconomy for the enhance- ĔĔ Availability of a large number of very creative and in- ment of the wet fraction of urban waste with the con- novative research groups, start-ups, spin-offs work- sequent production of compost to improve soil fertility ing in the sector; in urban and rural areas. 67

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY NN PROBLEMS MM OPPORTUNITIES Contribution to the Euro- ĔĔ Weak cooperation between ĔĔ Availability of large amounts and wide varieties of biomass, Mediterranean European and non-Mem- byproducts and waste streams from local agriculture, live- Bioeconomy ber States of the area stock production, forestry and food industry; with a limited integration ĔĔ Availability of the international cooperation program PRIMA and of knowledge and efforts the BLUEMED initiative addressed to improve the sharing and the joint exploita- across sectors and coun- tion of knowledge, technologies, capacities, and investments in the agrifood sec- tries; tor and marine Bioeconomy to guarantee local food security and safety, employ- ĔĔ Inability of some local com- ment and economic growth; munities to provide afforda- ĔĔ Advocacy for enhancing public understanding of the socio-economic and envi- ble food, good quality water ronmental value of the Bioeconomy in the Mediterranean; and to ensure healthy seas also due to adverse cli- ĔĔ Agriculture and food systems represent a potent force for shaping city infra- mate context, demographic structure, improving public health, feeding growing populations, rebuilding com- trends and social, political munities, reconnecting people to nature, restoring degraded environments and and economic instability; revitalizing economies. 68

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY 6.2 THE STRATEGY ĔĔ Supporting the alignment of EU, national, regional poli- cies, regulations and coordination of local stakeholders; The Italian Bioeconomy has enormous potential for stim- ĔĔ Ensuring that the Bioeconomy reconciles technological ulating growth if the above-mentioned challenges and advances and progress without undermining environ- opportunities are addressed and turned by each sector ment conservation and the resilience of the ecosystems; into resource-efficient and environmentally sustainable ĔĔ Promoting knowledge-based economic activities and production strategies and processes able to guarantee policy making; improved supplies of new, safe and high quality foods ĔĔ Supporting cross-disciplinary education and training for and bio-based products and services - including bioen- researchers as well as for technical careers; ergy, via competitive and low carbon supply chains. ĔĔ Catalyzing informal learning, tertiary education and The Bioeconomy embraces several sectors and broad technology/knowledge transfer to support the jobs in the wider Bioeconomy domain; value chains, which must be interconnected more ef- ficiently. Conversely, scientific disciplines and tech- ĔĔ Promoting the Bioeconomy in the Mediterranean area nologies require a stronger integration, leveraging on via the exploitation of potential of PRIMA and BLUEMED an effective engagement of public and private stake- initiatives addressed to improve Mediterranean primary production and bioindustry potential, thus creating new holders. This in turn will facilitate cooperation among jobs, social cohesion and political stability in the area. education providers, researchers, innovators, commu- nicators and representatives of consumers in order to 6.3 THE R&I AGENDA create the socio-economic and technological context for the effective and locally routed implementation of The main R&I needs and opportunities for boosting the the required cross-cutting interdisciplinary innovation. Italian Bioeconomy are reported below. The list is main- ly based on the results of Italian stakeholders consulta- The present strategy intends to deliver new knowledge, tion process carried out on 2016 for the preparation of technologies, services, capacity building, but also con- “Agrifood” and “Biobased economy” action plans in the tribute to fill the gaps related to regulations and public framework of implementation of National Smart Spe- awareness. More specifically the strategy aims at: cialization Strategy and later, in 2017, for the set up of the ĔĔ Increasing circularity in the economy; first Italian Bioeconomy strategy BIT approved on April ĔĔ Boosting sustainable and locally routed economic growth 2017. A few new inputs have been recently introduced in by bridging gaps between research and economic sec- the section below during the BIT revision, also for better tors, including an emphasis on Small Medium Enterpris- aligning it to the new priorities identified by the new Eu- es (SMEs); ropean Bioeconomy strategy published in 2018. 69

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY PRIORITY Sustainable agriculture and forestry embedded in international trade; a. To boost sustainable and resilient primary produc- ĔĔ Increasing photosynthesis and carbon dioxide (CO2) se- tion through actions and R&I aimed at: questration by plants; ĔĔ Implementing more effective models of agricultural and ĔĔ Exploiting the role of agriculture, including urban and forestry production, such as climate smart agriculture peri-urban agriculture, indoor vertical agriculture, and and forestry, precision farming, ecological intensification, forestry in the circular bio-based society, with a sys- agroecology and regenerative agriculture to improve the temic view on the links between primary production, productivity and resilience of animals and plants; ecosystems and human health. ĔĔ Implementing techniques, based on digital services b. To improve resource management and efficiency and satellite monitoring, for mitingating soil erosion through actions and R&I aimed at: and preventing hydrogeological disasters; ĔĔ Using biodiversity and modern genetic programs to im- ĔĔ Adopting of a systemic view of crop and animal produc- prove the resilience of animals and plants to biotic and tion, animal welfare, ecosystems and human health, abiotic stresses; by interconnecting sectors and value chians, existing knowledge and innovation; ĔĔ Improving the understanding of microorganismes role as strategic biological players for the resilience but ĔĔ Development of soil preservation and regeneration also health and productivity of plants and terrestrial schemes, including effective risk-management strat- and aquatic/marine animals as well as soil and water egies for the prevention of pollution deriving from the ecosystems; end life of materials and chemicals dispersed in the soil and water streams; ĔĔ Boosting organic farming and livestock; ĔĔ Valorizing and reusing agricultural and forest residues, ĔĔ Reducing GHG emissions by decreasing the use of fer- also for the production of bioproducts, bioenergy and tilizers; biofertilizers; ĔĔ Adopting multidisciplinary approaches based on the ĔĔ Creation of locally integrated agro and forestry industri- concept of Water-Energy-Food nexus to assess the al supply chains for a better valuing of product quality global sustainability of production processes, through- and a stronger contribution to rural development; out a specific set of indicators; ĔĔ Exploiting valuable national forest raw material for the ĔĔ Improving the use and management of water in agri- production of energy and materials for energy efficien- culture; cy along with high value certified new products, materi- ĔĔ Developing tools to plan adequate decarbonisation als and composites derived from wood. strategies and assess European agricultural emissions 70

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY ĔĔ Preserving and valorizing traditional knowledge and c. To improve multiple functions and benefits of land, promoting the connection with the ecological and the rural and abandoned areas through actions and socio-economic value of agriculture and forestry sys- tems through the transfer of good practices to the R&I aimed at: young farmers and entrepreneurs. ĔĔ Developing new processes for the conversion of resi- dues and side streams of agriculture and forestry value e. To contribute to improving the primary production chains into bio-products and bioenergy by following a in the Mediterranean area through R&I/actions, “cascade approach”; also promoted by the PRIMA initiative, aimed at: ĔĔ Development and production of high value certified new ĔĔ Preserving and implementing sustainable biodiverse wood products, wood-based materials, composites and crops and livestock, to offer a broad choice of geno- bioenergy from wood obtained from the sustainable types addressing the needs of multi-ethnic societies in management of forests; the Mediterranean basin; ĔĔ Supporting farms and forests diversification in the ĔĔ Developing molecular techniques and markers to fa- framework of circular Bioeconomy, in order to enhance cilitate the control and the selection of crop/livestock the sustainability of the sector and to keep the added genotypes, including microbial companion (beneficial value in the frame of rural economies; microbiomes as determinants of productivity, quality, ĔĔ Promoting the creation of new integrated agricultural safety), suitable for sustainable production in a chang- value chains based on best practices, on the sustain- ing Mediterranean environmental context; able use of biomass, and on the restoration of organic ĔĔ Designing a consumer-responsive Mediterranean ag- matter in soils also in marginal and abandoned lands. ricultural production system, supported by actions di- rected to raise the consumer awareness about the high d. To improve human and social capital and social quality of Mediterranean products and to promote their innovation through R&I/actions aimed at: consume; ĔĔ Enhancing the skills, the human and social capital of ĔĔ Exploiting alternative food sources (insects, algae etc.) farmers, foresters and other actors of the rural economy, and novel food microbes utilizing pedoclimatic national also through education and digital based technologies; areas and existing industrial infrastructures for antici- pating solutions for climate change related novel food ĔĔ Involving young land managers in less favored Italian security needs; regions in the adoption of good practices, thus creat- ing possibilities for expanding farming and supporting ĔĔ Providing integrated pest management solutions, aid- knowledge sharing; ed by novel control tools, to prevent diseases; ĔĔ Supporting young entrepreneurs in the agri-food and ĔĔ Mitigating the impact of climate changes on Mediterra- forest-wood sectors in less favored Italian areas also nean crops and livestock. through educational programs; 71

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY PRIORITY Aquatic living resources and marine and maritime Bioeconomy ĔĔ Implementing new Bioeconomy business models at the a. Boosting sustainable exploiting of marine resourc- land/sea interface as well as in wet lands; es though actions and R&I aimed at: ĔĔ Promoting the increase of the readiness level of the most promising Marine Energy technologies and their ĔĔ Increasing the sustainability of fishery and marine aq- integration with other activities at sea (e.g. desaliniza- uaculture also including ethical and ecological aspects; tion process, aquaculture etc.); ĔĔ Promoting the production and processing of seaweed, ĔĔ Fostering fisheries as a recreational activity within an jellyfish and phytoplankton as possible sources of hu- ecotourism approach also by strengthening interac- man edible proteins but also of biomass for the pro- tions with commercial fishery activity in remote coastal duction of bio-based chemicals, materials, energy, and and rural areas. methane; ĔĔ Improving the resilience, ecological compatibility, ro- b. To protect and valorize marine environment bustness of the main aquatic production species via through R&I/actions aimed at: breeding programs based on genomics and precision phenotyping; ĔĔ Promoting biomonitoring and bioremediation of mi- croplastics and xenobiotic compound contaminated ĔĔ Improvement and integration of monitoring and control sediment systems, mitigation measures for preventing systems to prevent illegal fishery through ICT, Big Data new contamination due to plastics and other and new Analytics and Industry 4.0 technologies; pollutants and development of marine degradable bio- ĔĔ Exploiting sustainably the large micro and meso plank- based plastics to limit/prevent marine litter and pollu- ton stocks for producing high value substances (e.g. tion; pharmaceutical, cosmetic, nutraceuticals, etc.) and bi- ĔĔ Analysing marine ecosystem resilience and regime obased products as well as enzymes for technological shifts in relation to climate change and other natural or applications; anthropic pressures, and develop mitigation strategies; ĔĔ Exploiting marine biomass as well as byproducts and ĔĔ Promotion of sustainable solutions (i.e. advanced bio- waste deriving from fishery and aquaculture value fuels, electric propulsion, electrification of ports) aimed chains within an integrated biorefinery scheme (e.g. for at reducing maritime ports and transport pollution; producing pharmaceutical, cosmetic and nutraceuti- cals); ĔĔ Promotion, conservation and sustainable valorization of the marine landscapes and cultural heritage. ĔĔ Exploiting the deep sea biosystems according to sus- tainable practices and schemes; 72

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY ĔĔ change, to implement the Common Fisheries Poli- c. To contribute to boosting a MED marine Bioecono- cy also by means of a Geographic Information Sys- my through the BLUEMED R&I/actions aimed at: tems-fishery system; ĔĔ Supporting the innovation perspective in aquaculture ĔĔ Promoting an integrated, multi-disciplinary knowledge identifying key species for farming, management strat- for better assessments and forecasts of the Mediter- egies for platforms, feed design, diseases; ranean Sea ecosystem and biodiversity, and deeper ĔĔ Addressing environmental fate and distribution of understanding of its vulnerability, resilience and risks, emerging pollutants to implement appropriate reme- as well as of the strategies for it preservation and sus- diation actions; tainable valorization; ĔĔ Exploiting the Bioeconomy potential of the land/sea in- ĔĔ Sustainably exploiting of deep sea biosystems and terface and of the multiple purpose offshore production land/sea nexus; sites, integrating bioresources and renewable energy ĔĔ Pursuing the ecosystem based management of fish- production. eries in a multispecies context impacted by climate 73

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY PRIORITY A sustainable and competitive agri-food system for a safe and healthy diet tools in risk analysis protocols; a. To improve healthy diets and people’s health ĔĔ Establishing the vulnerability of food and feed to fraud, through actions and R&I aimed at: counterfeiting or intentional contamination or adulter- ation in order to develop risk prevention, protection, ĔĔ Evaluating, educating and exploiting national consum- and mitigation strategies for food business operators; er preferences, attitudes, needs, behaviour, personal- ized nutrition and increasing lifestyle and education, ĔĔ Developing innovative packaging and smarter supply and communication; chains to support efficient delivery to consumers and prolonged shelf-life, reducing waste production; ĔĔ Tackling obesity through food formulations/substi- tutions, changes in retail and catering practices, and ĔĔ Developing ICT tools for smart food utilization and do- changes in consumer behavior; mestic food management; ĔĔ Solution able to improve the bioavailability of nutrients, ĔĔ Exploiting microbiomes for a more sustainable food also developing smart and personalized nutrition solu- system facilitating sustainable production choices and tions (e.g. metabotype tailored) stemming on new pro- business strategies. duction/delivery technologies and ICT approaches; c. To boost sustainable, competitive, and innovative ĔĔ Further exploiting knowledge on gut microbiome to de- food manufacture through actions and R&I aimed at: fine consumer needs for a healthy diet; ĔĔ Identification and production of new “typical/quality” ĔĔ Preventing food losses and waste production, water foods (DOP, IGP,STG, etc.) leveraging on methods aim- and energy consumption and improving food preserva- ing at defending their authenticity and traceability; tion, distribution and logistics, by integrating Industry 4.0 tools and key enabling technologies solutions into ĔĔ Preventing, detecting and remediating biotic and abiot- value and supply chains; ic contamination of food/feed products; ĔĔ Assessing the impact of changing food patterns on the ĔĔ Combining the healthy aspect of food with improved whole supply chain; taste and nutrient content. ĔĔ Adopting new Urban Food Systems to overcome the b. To improve food safety, security, defense, and dichotomy between urban and peri-urban areas, with integrity though actions and R&I aimed at: local food production and distribution of fresh and high nutritional value products; ĔĔ Developing rapid at-line or on-line detection tools for ĔĔ Promoting of networking among small agro-food en- food and feed safety (vs pathogens, allergens, toxins, terprises for the development of novel, longer or more chemicals, nanomaterials, etc.) and integrating such 74

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY robust supply and value chains at regional or multi-re- ĔĔ Develop cohesive and coherent international and in- gional level; dustrial policies for the recycling and reuse of packag- ing plastics, for increase in plant capacity, overcoming ĔĔ Developing of new models based on symbiotic socie- territorial resistance and developing sites capable of ty approaches in cooperation with social sciences and increasing the quantity of recycled material using all humanities forecasting a proactive role for prosumers available technologies, and at the same time guaran- towards more sustainable food production and con- teeing the forms of energy recovery suitable for pre- sumption behavior; venting disposal. ĔĔ Involving public authorities, the private sector and civil society in policy design and implementation; e. To contribute to improving food production and safety in the Mediterranean basin through R&I/ac- ĔĔ Developing recycling and reusing supply chains of tions, also promoted by PRIMA, addressed to: packaging plastics, overcoming territorial resistance and developing sites capable of increasing the quantity of recycled material, the energy recovery and prevent- ĔĔ Adopting sustainable technologies to valorize typical ing disposal; byproducts of the Mediterranean agroindustry, with ev- idence based proved safety, as new ingredients for high ĔĔ Developing of new technologies or innovative solutions quality food with functional properties; that accompany food companies in the delicate transi- tion towards the circular economy model. ĔĔ Generating innovative food-grade nano-biotechnolo- gies to preserve stability and improve bioavailability of bioactive molecules extracted by Mediterranean spe- d. To boost food policies, supply chains, markets, and cies and incorporated in functional food; communities though R&I/actions aimed at: ĔĔ Providing eco-innovations for efficiency and the valori- ĔĔ Creating knowledge, technology and regulations for the zation of side-products in Mediterranean agro-food val- production of food and feed ingredients from local fruit, ue chains, by integrating different production systems, vegetal and meat industry by- and co-products; sharing infrastructures and logistic solutions, in order to maximize yields and reduce wastes; ĔĔ Promoting short local food chains for health and con- trast non-market based networks of food provisioning; ĔĔ Designing innovative business models for quality and sustainability, at territorial level, involving food produc- ĔĔ Developing food products and promoting ethno food ers, services and tourism focused on the valorization of marketing, taking account of migration and changing the Mediterranean culture. demographics in the country; ĔĔ Developing innovation support systems by integrating different production systems, sharing infrastructures and logistic solutions, in order to maximize yields and reduce wastes; 75

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY PRIORITY Bio-based industries ĔĔ Exploring new, innovative, energy saving logistics and a. To boost production of biobased products and preservation/stabilization strategies for different types bioenergy in the framework of a circular economy of biomasses/biowaste; through actions and R&I aimed at: ĔĔ Developing a coherent policy framework and regula- tions promoting biobased products, education, training, ĔĔ Fostering the demand for bio-based products from a information and communication in the bio-based sec- consumers’ perspective through gathering evidence on tor; consumers’ practices in relation to biobased products ĔĔ Updating the map of climate-change related risks and and how these may form new market places and de- implementing mitigation strategies for urban and sub- velop new innovative and inclusive business solutions urban areas, thanks to the use of Bioeconomy products using bio-based services; coming from local chains and the exploitation of urban ĔĔ Mapping the biomass supply - including novel and al- farming and the circularity in management of water, ternative feedstocks (biowaste, CO2, marine biological wastewater and organic fractions; resources) building on existing knowledge, approaches ĔĔ Updating education programs for training new mul- and tools; ti-sectorial transdisciplinary professional profiles for ĔĔ Boosting the valorization of organic waste and effluent Bioeconomy and Bioindustries; organic matter to obtain high added value bioproducts; ĔĔ Strengthening the alliance between Bioeconomy value ĔĔ Creating of knowledge, technology and regulations for chains and manufacturing Italian sectors (e.g. made in the production of food and feed ingredients from local Italy) for the development of new business models and fruit, vegetal and meat industry byproducts; products; ĔĔ Supporting a systemic approach to innovation, for the ĔĔ Reconnecting communities and nature in urban set- development of tailored technologies for valorization of tings through projects, research and education: build- specific local biomass, waste streams as well as CO2, ing innovative linkages between humans and regen- also with the aid of advanced digital technologies for erative ecosystems to create liveable, healthier and big-data analysis, optimization and automation; resilient cities (BioCities). ĔĔ Improving flexibility in terms of feedstock and products produced by bio and chemical processing integration, and downstream processing, of the current biorefining processes and schemes,(including existing biometh- ane producing facilities); 76

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY ĔĔ Integrating catalysis and biocatalysis for efficient valor- b. To foster “Demonstration plants/test beds for cas- ization of biomass, waste-streams and CO2, according cading use of biomasses” through R&I and actions to a cascade scheme; aimed at: ĔĔ Setting up Italian Bioeconomy business models and products as global benchmarks, as well as references ĔĔ Facilitating the use/conversion of former oil refineries/ for good practice. industrial sites but also biogas/wastewater facilities for the implementation of novel biorefineries; c. To contribute to boosting a Mediterranean bi- ĔĔ Using integrated cross-sectorial evaluation systems obased Industry through R&I/actions aimed at: and cost-benefit analyses of bio-based products vs traditional products on a global scale and evidence to ĔĔ Mapping: A - local biodiversity and biomass (types and establish how alternative uses of renewable resources volumes, including biowaste); B - logistics and biomass or strategies for energy efficiency which can influence preservation/stabilization facilities; C - biorefineries carbon emissions and natural capital stock; (numbers and types) available in the whole Mediterra- nean basin; ĔĔ Creating an optimal network of laboratories, microbial, enzymes collections, etc. supported by new infrastruc ĔĔ Promoting cooperation between laboratories, infra- ture to form test beds that can develop process tech- structures, biorefineries and key private and public nologies and new products in a demo-scale that under- stakeholders of the EU MS and non-EU countries of the pin the development of biorefineries (industrial scale) area; for maximising the use of a variety of non food biomass ĔĔ Promoting local education, training, information and and biowaste; communication in the biobased sector and on its po- ĔĔ Integration of ICT resources (e.g. mediating ICT-based tential in the area; interfaces) within Bioeconomy value chains relation- ĔĔ Turning the Mediterranean biodiversity into biobased ship for inter-organizational governance mechanisms, products for industry; aiming at satisfying the simultaneous need for control, collaboration, and adaptability; ĔĔ Exploiting the Bioeconomy potential of the land/sea in- terface and of the multiple purpose offshore production ĔĔ Developing sustinable, economically viable and scala- sites, integrating bioresources and renewable energy ble methods for CO2 capturing and reestablishment of production. carbon in the soil to mitigate soil depletion; 77

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY 6.4 SUPPORT MEASURES the implementation of European policies ad- dressed to waste prevention and minimization, In order to unlock the innovation potential of the Ital- in order to encourage full exploitation of the re- ian Bioeconomy, it is fundamental that the above R&I sources and circularity. Agenda is flanked by accompanying measures aimed at

2. Exploring demand-side innovation policy tools such creating the framework conditions to boost it by creat- as standardization, to implement strict targets for ing competitiveness and productivity, alongside initia- the separate collection of organic waste, labelling, tives to increase corporate social responsibility and so- and public procurement. A life cycle thinking and cial awareness on the role of Bioeconomy in a changing ecodesing approach should steer the transition, in climate and ecosystem. Such accompanying measures order to find the right balance between fossil based will be adopted and implemented together with the R&I products (that give an important contribution in the actions listed above. They are aimed at: durable goods sector) and bio-based products, espe-

1. Ensuring strong coordination among the ministries, cially in sectors where environmental concerns are other public administrations, industries and firms higher, i.e. by connecting environmental concerns and national technological clusters of the Bioecon- with low-impact solutions which are available and omy domain, in order to define a proper and coher- ready to be implemented; ent legislative framework, and minimize duplication

3. Stimulating demand for Bioeconomy products and and fragmentation. A permanent working group on services through enforcing green public procure- Bioeconomy composed of representatives of such ment, promoting communication and information to organizations will be established with the task of: consumers to increase their awareness of biobased a. Monitoring the implementation of the Bioecon- products, highlighting their positive impacts in social omy strategy; and environmental terms (green jobs, social accept- ance, energy efficiency, reduced GHG emissions, b. Proposing new measures and actions to im- lower extraction rate of non-renewable resources, prove the Bioeconomy system - also evaluating benefits for land and terrestrial ecosystem and bi- the social and environmental impact of subsi- odiversity conservation), adjusting fiscal measures dies on nonrenewable resources; and policies in order to increase private demand for c. Implementing and coordinating international biobased products; initiatives to boost the Bioeconomy in the Med-

4. Creating, through a cooperation with the stakehold- iterranean basin; ers, a Bioeconomy marketplace in order to match d. Guaranteeing the policy coordination among the demand and supply of biomass, technology, and public authorities, with particular attention to services; a database to collect and share data on bi- 78

6. CHALLENGES AND GOALS FOR THE ITALIAN BIOECONOMY omass and biowaste actual and potential availability, 9. Involving local administrations in defining strategies technological processes, research project, in order to create organic waste and effluent organic matter to put into practice and showcase industrial symbio- value chains by promoting the adoption of integrated sis, technological innovation and best practices; treatment processes that combine purification and valorization;

5. Revising academic and advanced-education pro- grams in the context of new economic and productive 10. Promoting consumer empowerment through pro- scenarios while creating initiatives for the education fessional and pertinent information and communi- and professional training of new Bioeconomy spe- cation of the impact and benefits of the Bioeconomy; cialists, through programmes for technical schools,

11. Supporting corporate social responsibility by propos- academic courses and programmes, and executive ing a methodological framework for enterprises to masters on Bioeconomy - also in partnership with highlight the bio-based content and features of Bio- private actors and industrial and agricultural play- economy processes and products through the appli- ers. Supporting local administrations in enforcing cation of life-cycle assessment, extended accounting their knowledge and competences on Bioeconomy and green reporting to evaluate the net costs of the through dedicated training courses and expertise Bioeconomy production including the carbon bal- acquisition; ance and the environmental footprint, and promot-

6. Strengthening the coordination of Regions, poli- ing voluntary labelling or other certificate schemes cy harmonization and best practices sharing, also which are easy-to-understand by final consumers by supporting local administrations in enforcing and verified and managed by institutional bodies; their knowledge and competences on Bioeconomy

12. Promoting the use of sustainability standards, cer- through dedicated training courses and expertise tification schemes and labels to support the bio- acquisition; based market and the creation of a ‘level playing

7. Valorizing sustainable urban biowaste production by field’ between bio-based products and conventional ensuring that separately collected urban biowaste products. Within this respect, the European project is used for compost and/or anaerobic digestion, as STAR-ProBio (Horizon 2020 Research and Innovation well as valorizing biological wastewaters for the re- Action) is performing a multidisciplinary study, aim- alization of high added-value products. Such meas- ing at the development of: (i) a comprehensive blue- ures would minimize the environmental impact (GHG print for sustainability assessment (SAT-ProBio); emissions, local pollutants and discharge; and (ii) a novel system dynamic model (SyD-ProBio) that would serve as a valuable tool for supporting ev-

8. Supporting the growth of startup companies through idence-informed policy interventions and for creat- open-access infrastructures for pre-industrial scal- ing a level playing field. ing-up and organization of competent regional poles for effective technology transfer; 79 7 7 IMPLEMENTATION AND MONITORING Measuring Bioeconomy performance through indicators gated data levels. In some cases, it could be difficult is a complex activity. The Bioeconomy involves a wide to find data for all Bioeconomy subsectors or to distin- number of different products, commodities, intermediate guish between bio-based and non bio-based products goods and technologies and it is an economy in evolution. and sectors. Therefore, also the construction of mon- itoring tools is subjected to an evolutionary process of A great part of its future development will emerge from data availability to meet public awareness and assess- the convergence and transformation of markets and in- ment needs. 8 dustries and from the creation of new markets, phenom- ena for which statistical data and indicators are currently Another set of indicators refers to the sustainability of unavailable. In addition to this, there is still some uncer- the Bioeconomy in order to monitor the pressure and tainty on the constituents of the Bioeconomy value chain. the impact on the environmental and social systems. 9 However, it is possible to try to relate the overall objec- tive to a tentative set of EU key performance indicators In the implementation phase of the Bioeconomy moni- (KPI)50 to monitor the Bioeconomy developments on the toring system, new methodological approaches51 - cur- supply and demand side. These indicators refer to Eu- rently subject to in-depth analysis at EU level - will be rostat and national data and allow for the implementa- considered to measure the related biophysical indica- tion of benchmarking analysis. 7 tors. This could also imply an update of the identified indicators to be consistent and comparable with a com- Indicators have been selected in function of data avail- mon EU Bioeconomy monitoring system once estab- ability. There is a general problem of data gaps and lished. quality homogeneity, especially at the most disaggre- 50 Selected indicators are based on results of BERST project consortium, “BioEconomy Regional Strategy Toolkit”, Criteria and Indicators describing the Regional Bioeconomy, Cambridge (UK), 31 October 2014 and Correlation of I&M with the developed Criteria, Mol (Belgium), 3 December 2014. 51 JRC Biomass Assessment Study ec.europa.eu; Nuss P., Blengini G.A., Haas W., Mayer A., Nita. V., and Pennington D.P. (2017): Development of a Sankey Diagram of Material Flows in the EU Economy based on Eurostat Data, EUR 28811 EN, Publications Office of the European Union, Lux- embourg, ISBN 978-92-79-73901-9, ISSN 1831-9424, doi:10.2760/362116; Bioeconomy policy day 16 November 2017, Outcome report, ec.europa. eu and Session on Indicators for the Bioeconomy: what do we need, what do we have, what are the gaps? (JRC- De Gasperi) webcast.ec.europa. eu; Alessandra La Notte, Sara Vallecillo, Alexandra Marques ,Joachim Maes, Beyond the economic boundaries to account for ecosystem servic- es, December 2018 ncbi.nlm.nih.gov; Camia A., Robert N., Jonsson R., Pilli R., García-Condado S., López-Lozano R., van der Velde M., Ronzon T., Gurría P., M’Barek R., Tamosiunas S., Fiore G., Araujo R., Hoepffner N., Marelli L., Giuntoli J., Biomass production, supply, uses and flows in the European Union. First results from an integrated assessment, EUR 28993 EN, Publications Office of the European Union, Luxembourg, 2018, ISBN 978-92-79-77237-5, doi:10.2760/539520, JRC109869; Lier, M., Aarne, M., Kärkkäinen, L., Korhonen, K.T., Yli-Viikari, A. and Packalen, T. (2018). Synthesis on Bioeconomy monitoring systems in the EU Member States - indicators for monitoring the progress of Bioeconomy. Nat- ural resources and Bioeconomy studies 38/2018. 44 p.Natural Resources Institute Finland, Helsinki 2018; Vincent Egenolf and Stefan Bringezu, Conceptualization of an Indicator System for Assessing the Sustainability of the Bioeconomy, MDPI, sustainability, 16 January 2019 81

7. IMPLEMENTATION AND MONITORING 7 KEY PERFORMANCE INDICATORS AT NATIONAL AND REGIONAL LEVEL CRITERIA INDICATORS Agricultural biomass production [kg/capita] - import of agricultural biomass BIOMASS Blue biomass production [kg/capita] - import of blue biomass AVAILABILITY Forestry biomass production [kg/capita] - import of forestry biomass Waste biomass production (including OFMSW) [kg/capita] - import of waste biomass Firms in total Bioeconomy sectors [% of total firms] PRODUCTIVE Firms in Bioeconomy subsectors [% of total firms] STRUCTURE Innovative start up in total Bioeconomy sectors [% of total innovative start up] Innovative start up in Bioeconomy subsectors [% of total innovative start up] EMPLOYMENT Employment in total Bioeconomy sectors [% of total employment] STRUCTURE Employment in Bioeconomy subsectors [% of total employment] Tertiary education [% of total population] R&D employment in total Bioeconomy sectors [% of total employment] HUMAN CAPACITY R&D employment in Bioeconomy subsectors [% of total employment] University courses in Bioeconomy sectors [% of total university courses] Research Institute in Bioeconomy sectors [% of total Research Institutes] IPRs (patent, trademark, design) applications in total Bioeconomy sectors [number of application per 1000 employees] INNOVATION IPRs (patent, trademark, design) applications in Bioeconomy subsectors [number of application per 1000 employees] Private R&D expenditure [index (EU=1)] INVESTMENT Public R&D expenditure [index (EU=1)] Population growth [% year] DEMOGRAPHICS Population 15-65 years [% of total population] GDP (PPP) [index (EU=1)] Turnover of total Bioeconomy sectors Turnover of Bioeconomy subsectors Value added of total Bioeconomy sectors Value added of Bioeconomy subsectors MARKETS Exports of total Bioeconomy sectors related goods [% of total exports] Exports of Bioeconomy subsectors related goods [% of total exports] Imports of total Bioeconomy sectors related goods [% of total exports] Imports of Bioeconomy subsectors related goods [% of total exports] 82

7. IMPLEMENTATION AND MONITORING 8 LEGEND FOR BIOECONOMY SECTORS PRIMARY BIOMASS SECTORS: AGRICULTURE, PAPER INDUSTRY, FORESTRY, FISHERIES AND AQUACULTURE FOOD INDUSTRIES, BEVERAGES AND TOBACCO WATER CYCLE BIODEGRADABLE WASTE RECOVERY AND MANAGEMENT BIO FURNITURE BIO TEXTILE & CLOTHING BIO PLASTICS AND RUBBER BIO APPAREL BIO ENERGY BIO CHEMICALS BIO FUELS BIO PHARMACEUTICALS 9 SUSTAINABILITY INDICATORS OBJECTIVES SUSTANAIBLE PRINCIPLE INDICATORS Ensuring food security Social Change in food price volatility, Change in macronutrient intake/availability, Change in malnutrition or risk of hunger Managing natural resources Environmental/Social Change in freshwater availability, Level sustainbly of water pollution, Change in land use intensity, Land productivity, Rate of biodiversity loss, Secondary material price changes, Organic waste diverted from landfills; forest area subject to planning and certified surface; Water productivity - Water Use efficiency Reducing dependence on Economic/Environmental Final energy consumption, Energy intensity non-renewable resources of the economy, Share of renewable energy in gross final energy consumption. Energy productivity - Energy use efficiency Coping with climate change Environmental/Social Change in greenhouse emissions, Level of emission of air pollutants Enhancing economic growth Economic/Social Change in Employment rate, Job creation in skilled/unskilled labor 83 8 8 ACTORS INVOLVED AND ROAD MAP The first version of the Italian Bioeconomy Strategy iv) Ministry of the Environment, Land and Sea BIT I was prepared thought a wide stakeholder consul- v) XIinces Committee of Italian Regions and Autonomous Prov- tation in 2016 and it was approved on April 20, 2017. The vi) Italian Technology Clusters for Green Chemistry SPRING, current Presidency of Council of Ministers asked for a Agri-Food CLAN, and Bluegrowth BIG BIT I update. The following entities have been involved The present Strategy (BIT II) was formally presented in the BIT I revision and BIT II preparation: at the Italian presidency of Council Ministers on May i) Ministry for Economic Development 14th 2019; it is open to comments and suggestions from ii) Ministry of Agriculture, Food, Forestry and Tourism stakeholders and citizens (please refer to website for iii) Ministry of Education, University and Research communicating them) THE NATIONAL BIOECONOMY TASK FORCE WHO WAS INVOLVED IN BIT II PREPARATION AND IN CHARGE FOR FACILITATING THE STRATEGY ADOPTION AND IMPLEMENTAION IN THE WHOLE COUNTRY IS COMPOSED BY: Giancarlo Giorgetti, Pamela Morassi, Giacomo Vigna - Presidency of Council of Ministers, Coordination Andrea Lenzi, Fabio Fava - National Committee on Biosafety, Biotechnology and Life Sciences of Presidency of Council of Ministers Technical & Scientific coordination Fabio Fava, Franco Cotana - Ministry of Education, University and Research Elena Lorenzini, Debora Rogges, Cinzia Tonci, Daniela A. R. Carosi - Ministry of Economic Development Emilio Gatto, Valerio de Paolis - Ministry of Agriculture, Food, Forestry and Tourism, Annalisa Zezza (CREA) Piergiuseppe Morone, Orecchia Carlo, Pepe Paolina - Ministry of the Environment, Land and Sea Manuela Bora, Raffaele Liberali - XI Committee of Italian Regions and Autonomous Provinces Catia Bastioli, Giulia Gregori, Lucia Gardossi - Italian Technology Cluster for Green Chemistry (SPRING) Luigi Scordamaglia, Patrizia Brigidi, Maria Cristina Di Domizio - Italian Technology Cluster for AgriFood (CLAN) Roberto Cimino, Emilio Campana - Italian Technology Cluster for BlueGrowth (BIG) THE NATIONAL BIOECONOMY TASK FORCE ACKNOWLEDGES THE WORKING GROUP AND EXPERTS WHO EDITED BIT I PRE- SENTED IN APRIL 2017. 85 BIT II Bioeconomy in Italy