BioeconomystrategiesinCanadaandtheInternationalBioeconomy

Forum

ErikaVanNeste,GlobalBioeconomySummitApril19,2018

Canada’sIndustrialBioeconomyStateofthesector Barriers

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•Marketpull,signalandacceptancechallenges

•Newandcomplexsupplychainsatdifferentstagesofdevelopment

•Diverse,emergingsectorthatcutsacrossresearchdisciplines,commodities,manufacturingstreams

•Region-specificopportunitiesinbiomassfeedstockproductionandbioproduct manufacturing

•Predominantlysmallandmediumenterprises(SMEs)withsomemultinationalenterprise(MNE)investments

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• In2015,190firmswereinvolvedintheproductionordevelopmentofnon-conventionalindustrialbioproducts inCanadawithestimatedrevenuesofbioproducts at$4.27billionandemploymentof5,618.

190firms,estimatedrevenuesof$4.27B

Firmsreportingproductionordevelopmentactivity

• BiofuelsisthelargestsubcategoryofthebioproductindustryinCanada- estimatedrevenuesof$2.72billion(or63.7%oftotalbioproductrevenues),111firms.

• Manyfirmsindicateactivitywithoutsales,.Manyareinpre-commercialstages(researchorproductdevelopment)

GrowthAreas– ValueandVolume

FutureGrowthAreas(lowervolume/highervalue)

Traditionalfocus(highvolume/lowvalue)

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ChallengesofanEmergingSector

Canada’sBioeconomyPotential- AbundantSustainableBiomass

• Canadaishometo43%oftheworld’scertifiedforestswiththe“mostadvancedregimeofforestmanagementandconservationintheworld”

• Largeamountofresiduesandwastesavailableforbioenergywithoutadditionalgreentreeharvesting– Harvestresiduesandunusedwood20Mt/yr– Salvagefromnaturaldisturbance51Mt/yr

• Controlledremovalofexcessivecropresiduescanreducetillageandimprovesoilquality– Cropresidues20Mt/yr(IEA)

• Biodigestionofmanureandfoodwastesisaprovenmanuremanagementstrategyandgeneratescleanelectricity– Recoverablemanure58Mt/yr(IEA)

Source: State of Canada’s Forests Report, 2015

348 M ha of forest

161 M ha certified

Less than 0.05 M ha deforested

PressuresonTraditionalBiobasedSectors

To use residues

To move up the value chain

To diversify markets and

productsChanging consumer trends and policy objectives

Governmentscanacceleratethedevelopmentofthebioeconomy

Influence Analysis/advice/advocacy, international negotiations, engaging OGDs, provinces, territories and other stakeholders, developing foundational data

Policy and Programs Incentive, loans, grants, tax measures, procurement

Regulations and Standards Standards, codes, regulations (e.g. building codes, criteria and indicators)

Science, Technology and

KnowledgeFunding for, or direct involvement in, science and technology development as well as knowledge transfer

GovernmentofCanada’sCleanGrowthAgenda– OpportunitiesforBioeconomy

• Cleantechnology,Innovation,andcombattingClimateChangearekeyGovernmentofCanadapriorities

• Pan-CanadianFrameworkonCleanGrowthandClimateChangeisfocusedonachievingGHGreductionsandtransitioningtoalow-carboneconomy.

– Carbonpricing– CleanFuelStandard– $2BLowCarbonEconomyFund

• CommitmentstoCleanTechnologyandInnovationalsohavepotentialtocontributetocleangrowth,andofferopportunitiesforthebioeconomy

• Internationalcommitments– MissionInnovation,Horizon2020,Agreementfor

ScientificandTechnologicalCooperationbetweenCanadaandEuropeanCommunity,InternationalBioeconomyForum,andothers.

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Canadacanbuildonitsstrengthinbiobasedsectors

Large supply of sustainably managed biomass resources

Well-integrated wood biomass product supply chain networks

Biomass science and technology leadership

Large sustainable biomass supply

Well integrated supply chains

Biomass technology leadership

Gasification

LiDAR

Emerging agri-based clusters and supply chains

Provincial engagement and buy-in

• Differentdrivers,differentstrategies/policiesacrossCanada

• HeatinginNWTorYukon• AgricultureinManitobaand

Saskatchewan• IndustrialdevelopmentinOntario• ForestryresourcesinBritish

Columbia,AlbertaandQuebec• AquaticresourcesinAtlantic

provinces

• FederalProvincialInitiatives• CanadianCouncilofForest

MinistersForestBioecoomyFramework

• CanadianAgriculturePartnership

HeatingIn YK and NWT

Forestry in BC, AB and QC

Agriculture in SK and MB

Industry in ON Aquatic in

Atlantic

Biomass can be a source of solutions to traditional sectors and to a greener economy

Adecentralizedmovement…

Canada will be a global leader in the use of sustainable forest biomass as part of the transition to a low carbon

economy.CCFM Forest Bioeconomy Framework for Canada (2017)

Communities

Supply Demand Innovation

….Leadingtoaunifiedfront:ForestBioeconomyFrameworkforCanada

TheForestBioeconomy

Advanced Building Systems for tall buildings

Advanced materials: Cellulose nanomaterials

Renewable energy for heating or fuel

Platform chemicals: Lignin and derived chemicals

SupportfortheAgriculturalBioeconomy

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• Currently,nounifiednationalstrategyfortheagriculturalbioeconomy,butsupportthroughexistingprogrammingandinitatives

• BioproductsAg-SciClusteradministeredbyBio-IndustrialInnovationCanada(endingMarch2018)

• AgriculturalCleanTechnologyProgram- $25Minsupportspanningtheinnovationcontinuumforagri-basedbioproductsandprecisionagriculture

• AgriculturalinnovationprogrammingthroughtheCanadianAgriculturalPartnershipFede

ralProgram

sTheCanadianAgriculturalPartnershipisafive-year,$3billioninvestmentbyfederal,provincialandterritorialgovernmentstostrengthentheagricultureandagri-foodsector

AgriculturalCleanTechnologiesScienceStrategy

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OUTPUTS

(e.g.,productiononmarginallands)BIOENERGYCROPS

REDUCINGINPUTS(e.g.,energy,nitrogen)

DIVERSIFIEDUTILIZATIONSTREAMSLANDSCAPELIVINGLABS

PARTNERSHIPS

SUSTAINABLECROPPERFORMANCEREDUCEDCO2ANDN2O

EMISSIONSFROMAGRICULURALLAND

ADDRESSTHREATSTOTHEVALUECHAIN

(T)

PESTANDDISEASEMANAGEMENT,TOLERANCE REDUCEDMETHANEEMISSIONSFROMAGRICULTURALWASTE

SUSTAINABLEFEEDSTOCKVALUECHAINS

INVESTMENTSINCREASE

AGRICULTURALPRODUCTIVITY(P)

CLEANECONOMICGROWTH:

BIOPRODUCTVALUECHAINDEVELOPMENT INCREASEDBIOBASEDRENEWABLECONTENTOFENERGY,CHEMICALSAND

MATERIALSRESEARCHTEAMS

ENHANCEENVIRONMENTALPERFORMANCE(E)

SUSTAINABLEINTEGRATIONOFBIOMASSFEEDSTOCKCROPS

INCREASEDADOPTIONOFAGRICULTURALCLEAN

TECHNOLOGIESLABORATORIES

INCREASINGBIOENERGYPRODUCTIONANDMETHANECAPTURE

FIELDFACILITIES

MITIGATIONOFGLOBALWARMINGTOADDRESS

CLIMATECHANGE:

IMPROVEATTRIBUTESFORFOODANDNON-FOODUSES(A)

MOREEFFICIENTDECONSTRUCTIONOFCELLULOSICFEEDSTOCKS

REDUCEDCH4ANDCO2

EMISSIONSFROMLIVESTOCK

FOUNDATIONS/INPUTS

STRATEGICOBJECTIVES OUTCOMES

NewKnowledge,CleanTechnologies,andProcessesfor:

Commercialisation/ Market Entry

DemonstrationApplied R&DBasic Research Market Development

Solution deployment

Research Programs (all sectors – NRC)

Strategic Partnerships Program (all sectors – NSERC)

Departmental Labs (all sectors –NRCan, AAFC)

Canadian Wood Fibre Centre (forest – NRCan)

Forest Innovation Program (forest –NRCan)

SR&ED Tax Incentives (all sectors –CRA)

Strategic Innovation Fund (all sectors - ISED)

FPInnovations (forest – NRCan, Provinces and Territories, Industry)

IFIT (forest – NRCan)

Clean Growth Program (NRCan)

Green Construction through Wood (GCWood) Program (forest – NRCan)

Expanding Market Opportunities (forest – NRCan)

Clean Fuels Standard (all sectors - ECCC)

Carbon Pricing (all sectors - ECCC)

Clean Energy for Rural and Remote

Communities (all sectors –NRCan)

Green Infrastructure (all sectors – Infrastructure

Canada)

Infrastructure Bank (all sectors)

Low Carbon EcnomyFund (all sectors - ECCC)

Trade Commissioners (all sectors - GAC)

Industrial Research Assistance Program, IRAP (all sectors – NRC)

BDC (all sectors)

EDC (all sectors)

Regional Development Agencies (all sectors)

Invest in Canada Hub (all sectors - GAC)

ecoEnergy programs (energy – NRCan)

SDTC Tech Fund (all sectors – ISED)

Mission Innovation (all sectors – NRCan)

Agriculture and Agrifood Canada – AAFC

Business Development Bank of Canada -BDC

Canada Revenue Agency - CRA

Enivronment and Climate Change Canada – ECCC

Export Development Canada - EDC

Global Affairs Canada – GAC

Innovation, Science, and Economic Development Canada – ISED

National Research Council Canada – NRC

National Science and Engineering Research Council of Canada -NSERC

Natural Resources Canada – NRCan

IFI (forest – NRCan)

FederalSupportAcrosstheInnovationContinuum

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Agricultural Greenhouse Gases Program (AAFC)

AgriInnovate Program (AAFC) AgriMarketing Program (AAFC)

AgriScience Program (AAFC)

Agricultural Clean Technology (ACT) Program (PT applicants, can be in partnership with industry)

Low Carbon Economy Fund (all sectors –ECCC)

Beneficial Management Practice incentives under

Environmental Farm Plans (Agriculture )

INTERNATIONALBIOECONOMYFORUM

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InternationalBioeconomyForum

• TheInternationalBioeconomy Forum(IBF)wasinitiatedbytheEuropeanCommissionwiththeaimofprovidingaflexiblemultilateralmechanismwhereglobalpartnerscoulddiscussandactoncommonthematicchallengesinresearchandinnovation,andpolicyalignmentrelatedtothebioeconomy.

• TheIBFiscurrentlymadeupofsevenmembers– EuropeanCommission,NewZealand,SouthAfrica,India,China,Argentina,CanadaandUS.

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IBFResultstoDate

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• CanadaconfirmeditsparticipationintheIBF(October2016)

• EUannouncedtheIBF(October2016)• FirstplenarymeetingoftheIBF

(November2017)– Co-chairedbyECandCanada– LaunchoftheIBF– Governancemodeladopted– Twoworkinggroupsestablished

• CanadaandEUCo-Chairs(2017-2020)

IBFWorkingGroups• WorkingGroups– theworkoftheIBFisundertakenin

organisedad-hocworkinggroups,whichguideinternationalcooperationonkeyresearchandinnovationprioritiesandhorizontalactivitieswhicharecrucialforthedevelopmentofaglobal,sustainablebioeconomy

• EstablishedworkinggroupsincludeMicrobiomeandICTinPrecisionFoodSystems

• ImplementationofIBFworkinggroupworkplansareinprogress

• NewIBFWorkingGroupsarecurrentlybeingproposed(e.g.PlantHealth,BioeconomyIndicators)

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Scientific cooperation & policy alignment

OpportunitiesforCollaborationUnderIBF

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GOVERNMENT OF CANADA

• International trade and relations

• National policy and regulatory framework

• National reporting

IBF

• Scienceandtechnology• MarketandTradeDevelopment

OTHER NATIONAL GOVERNMENTS

• International trade and relations

• National policy and regulatory framework

• National reporting

• Cooperate on common goals (e.g. non-competitive R&D, market development and trade, etc. )

• Cooperate on common challenges (e.g. sustainability, climate change mitigation, etc.)

• Establish common definitions, indicators, codes and standards, etc.