GEAR 2030 Working Group 2 Highly Automated and connected vehicles

Transcription

1 EUROPEAN COMMISSION Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Industrial Transformation and Advanced Value Chains Automotive and Mobility Industries GEAR 2030 Working Group 2 Highly Automated and connected vehicles Project Team 2 Financing support Final report (draft) Date 22/12/2016 Version 0.7 Contributions from: GERMANY, NETHERLANDS, SPAIN, UK, AUSTRIA, FRANCE, BELGIUM, POLAND, SWEDEN, FINLAND, ROMANIA, SLOVAKIA, DG GROW, DG RTD, DG MOVE, DG CNECT, VW, PSA, JLR, CLEPA (Valeo), ERTICO, Asfinag (AT), Committee of Regions, NXP, Qualcomm, ST micro, Intel, Pirelli, Industriall, Austriatech, Digital Europe, INEA, EIB, EUREKA, EUCAR, CLEPA (BOSCH), (please add) Commission européenne/europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel Office: BREY 10/047- Tel. direct line antony.lagrange@ec.europa.eu

2 This is a working document and the individual sections drive and reflect discussions in GEAR 2030 WG2 PT2 activities. Understand that this is work in progress and will be changed until first draft release version! EXECUTIVE SUMMARY Will be edited for final draft (in 2017) 2

3 TABLE OF CONTENT EXECUTIVE SUMMARY... 2 TABLE OF CONTENT SCOPE Scope and objective of Project Team Document structure CHALLENGES AND ACCELERATORS FOR IMPLEMENTATION OF AUTOMATED AND CONNECTED VEHICLES Research, innovation and development phase Pre-deployment and large scale demonstrations phase Industrialisation and mass market Other items and accompanying measures FUNDING AND FINANCING MECHANISMS TO SUPPORT IMPLEMENTATION European programmes Horizon Contractual Public Private Partnership (cppp) Joint Technology Initiative (JTI) ERA-NET Connecting Europe facility (CEF) European Investment Bank (EIB) Multi-national Funding: EUREKA Cluster Important project of common European interest (IPCEI) National programmes Germany United Kingdom Spain Austria Finland France Belgium Netherlands Sweden Italy GAP ANALYSIS Analysis and conclusion RECOMMENDATIONS

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5 1. SCOPE GEAR 2030 is the high-level initiative from the European Commission to boost competitiveness and growth in the automotive sector and to ensure a co-ordinated approach and to address the challenges faced by the European automotive industry. A competitive European automotive industry is very important for prosperity and growth of EU economy. Therefore, the European automotive industry must meet challenges arising from globalization, urbanization, changing mobility patterns, digitalization, shift of economic power, demographic changes, etc. The GEAR 2030 High Level Group has set up three Working Groups, each to address one of the following themes: 1) Adaptation of EU automotive value chain 2) Highly automated and connected vehicles 3) Global competitiveness 1.1. Scope and objective of Project Team 2 For the Working Group 2 on "Highly automated and connected vehicles" two Project Teams (PTs) have been created. PT1 is working on policy and regulatory issues, and PT2 deals with funding and financing issues. Increased connectivity and automation are major trends that are expected to shape the future of road transport and mobility. They hold the promise of addressing many of the major challenges facing today s transport system, such as user safety, energy efficiency, air quality and traffic congestion, and to enhance the drivers comfort and convenience. The combination of advanced connectivity systems and automated vehicles could disrupt the entire automotive ecosystem. Connected and automated vehicles will enable the breakthrough of new "mobility-on-demand" services and innovative digital services in the area of entertainment, commerce, vehicle management, etc. To leverage and realise the foreseen impacts for society through connected and automated driving, policy and industry stakeholders need to work together and remove hurdles to implementation, address key challenges and build an innovation-friendly environment accelerating market-uptake. The newly established European Automotive- Telecom Alliance is a result of these needs. In the Alliance, around 40 companies join forces to promote the wider deployment of connected and automated driving in Europe. The first concrete step is the advancement of a Pre-Deployment Project aimed at testing selected major use-case categories 1. One objective of the GEAR 2030 Working Group 2 for "Highly automated and connected vehicles" is the analysis of current funding and financing mechanisms at national and European level for accelerating the development and implementation of connected and automated driving. Based on this analysis the WG gives recommendations 1 5

6 to the EC, EU Member States and other relevant stakeholders on a coherent funding policy and mechanisms which are suitable to further accelerate the development and implementation of connected and automated driving. Some recommendations could be implemented by the Member States within 1-2 years, some refer to the use of funding and financing tools (e.g. Horizon 2020 or the future R&I Framework Programme FP9) and other focus on the development of new actions. The basis for the entire exercise are technical and societal needs for Connected and Automated Driving (CAD) which are on purpose not developed in PT2 but taken from existing reports, running initiatives and other relevant sources. Hence, the scope of project team 2 (PT2) activities of GEAR2030 WG2 is: to collect funding needs and priorities form available sources (e.g. technology roadmaps etc.) to analyse existing EU and national funding programmes and consider EIB financing schemes to give recommendations for the improvement and structuring of the funding und financing landscape to create more coherence and synergies of public support 1.2. Document structure The structure of this report is as follows: Chapter 2 is describing existing and future challenges while chapter 3 describes existing funding schemes. The information in these two chapters are analysed in chapter 4, the GAP analysis, and finally the Recommendations are presented in chapter 5. 6

7 2. CHALLENGES AND ACCELERATORS FOR IMPLEMENTATION OF AUTOMATED AND CONNECTED VEHICLES There are different challenges for automated driving and connected vehicles depending on use-case, function, SAE level and Technology Readiness Levels (TRLs). As a consequence, the funding or financing mechanisms addressing the challenges have to exhibit great flexibility or use different tools for different purposes. In case of the latter, a coherent funding and financing landscape is needed, with clear focus on industrial needs and accelerating implementation. At the same time, the funding and financing tools have to realize impact in terms of achieving policy objectives related to transport efficiency, energy consumption and safety. For this purpose, we distinguish between at least three different phases: research, innovation and development pre-deployment and large scale demonstration phase industrialization In the following sub-chapters, the different phases are discussed in more detail showing their specifics and exemplifying some of the challenges relevant in the corresponding phase. However, the converse argument is not correct; the list of challenges might be relevant in all phases, and the list of challenges is not comprehensive (i.e. there might be more challenges not explicitly mentioned in the document). As described in chapter 1.2 this chapter is addressing both types, already addressed (e.g. in Horizon 2020) and open challenges (i.e. not properly addressed) and accelerators Research, innovation and development phase Research and innovation is understood worldwide as one of the key factors for a growing economy, a competitive industry, high quality of living and secure, enlightened societies. Connected Vehicles and Automated Driving (i.e. digitalization of road transport) are certainly one of the dominating trends in the first quarter of the 21st century. This trend modifies the way we think about our future mobility and future mobility needs. Future mobility solutions and vehicles will not only provide the connectivity for their users but embrace the opportunity of ever growing computing power, high speed connectivity, deep learning algorithms for artificial intelligence, fast processing and decentralised data handling, thus enabling new mobility services (such as on-demand-mobility). Through the fast technological evolvement in IT and semiconductor industries a complete new range of applications for smart and safe mobility will be possible. Further, new market entrants, used to short innovation cycles, start evaluating the business opportunities and mobility use cases. This will go hand in hand with the need for new skills (e.g. IT/ICT and artificial intelligence/deep learning). Therefore, governments across Europe need to take an active stance in supporting growth-enhancing policies, notably research and innovation for connected and automated driving, in order to increase economic prosperity and quality of life by addressing these key challenges: How to design develop and deploy required infrastructure for higher levels of automated driving? How to enable safe SAE level 4 automated driving at mass-production costs? 7

8 How to maximise the impact of digitalised mobility solutions, and stay ahead in the race for global competitiveness? How to actively manage the transition period across levels of automation? How to test, certify and validate automated driving functions (SAE L4 and L5) in a common and efficient way? How to secure connected vehicles from manipulation and threats to guarantee safety? How to optimize the use, application and interface for internet of things technologies, big data and innovative data management and governance? How to encourage new innovations that can help accelerate the deployment (e.g. in the field of MaaS, and through innovation friendly procurement programs etc) Pre-deployment and large scale demonstrations phase There are several important aspects addressed in the pre-deployment and large scale demonstration phase. The use-case and the user are central to this phase, as well as the societal expectation and acceptance. The objective is to develop an innovation friendly framework, fostering societal acceptance with clear user benefits, addressing costs and willingness to pay, remove barriers or chicken-and-egg situations and to accelerate the deployment of automated and connected vehicles. A partnership of public and industrial stakeholders is required to implement large-scale, cross-border pre-deployment projects which can address hurdles and barriers for implementation and identify needs for regulatory measures as well as raising awareness and create a knowledge society, and validating societal benefits. As mentioned, the European Automotive Telecom Alliance is aiming at such a large-scale, cross-border predeployment projects. [ ]. This phase is already close to industrialization and market implementation, with the need to involve all relevant stakeholders across different industrial sectors and across the value chains for success. Assuring competition compliance is of great importance, as well as successfully demonstrating use-cases and show benefits. They are based on industrial research results and ideally well connected to the research, innovation and development phase. The focus in the pre-deployment phase is to demonstrate concrete use-cases, technologies and business models to address the following issues: How to raise customer awareness, build-up value chains and create business cases? How to ramp up production facilities? How to demonstrate impact and effects on a large scale? How to deploy (if) necessary communication infrastructure and close communication gaps? How to test, certify and validate automated driving functions (SAE L3/L4/L5)? How to secure connected vehicles from manipulation and threats to guarantee safety? How to develop and implement large scale demonstration projects, across all involved stakeholders, across the value chains, across Europe? 8

9 2.3. Industrialisation and mass market CAD will have a remarkable economic impact and therefore play a decisive role in global competitiveness and EU s strategy on re-industrialisation of Europe (i.e. increase the contribution made by manufacturing to European GDP from 16% to 20% by 2020 as given in the Europe 2020) strategy). However, after developing, testing and successful demonstration of automated driving technologies and systems, the production and market penetration is the actual key to realize the expected impacts through increased number of users. Connectivity and automated driving bear great opportunities for industrialisation in terms of mass manufacturing of corresponding products (e.g. sensors, electronic control units, displays, communication units) as well as new business models or new mobility services. However, the technological evolution must be market compatible, meet customers expectations and willingness to pay. At the same time, industry has to provide fail safe products and all devices have to grant a guaranteed functionality over vehicle lifetime providing reproducible and documented history from production to end-of-life. Therefore, highly sophisticated mass manufacturing capabilities are a prerequisite for realizing impacts by successful introduction of Automated Driving. The following issues are typical questions in this phase 2 : What are the requirements for manufacturing and production of relevant systems, technologies and components for automated driving? Are additional or new production facilities needed and, if so, where? Which implications on production and global competitiveness do framework conditions have? Which barriers for mass manufacturing need to be addressed? What is the role of different business models (e.g. data based) and how do they compare against each other? 2.4. Other items and accompanying measures Further actions are required to accelerate the implementation and development of connected and automated driving as it is not sufficient to address each phase (i.e. research and development phase; pre-deployment and large scale demonstrations phase) on its own. Strategic planning and addressing industrial needs are required to link all phases at an early stage and ensure good integration and uptake of research results into demonstration. The networking of experts and programmes (specifically at a member state level) is an important success factor and accompanies these phases. Finally, the understanding of user needs, expectations, societal perceptions, impact assessment and added value are critical for successful (and accelerated) implementation for connected and automated driving. It is utmost important to address these issues during all phases with the appropriate attention: How to develop a common strategy for connectivity and automation in transport? How to network national programmes and activities? 2 See ERTRAC Automated Driving Roadmap 9

10 How to understand user and societal acceptance, improve human-machine interface, evolve training and education? 10

11 3. FUNDING AND FINANCING MECHANISMS TO SUPPORT IMPLEMENTATION Europe has a very strong industrial basis on automotive technologies and systems. The automotive industry is the biggest R&D investor in the EU out of all industrial sectors. In 2015, the 50 largest automotive companies in the EU invested about 50 billion in R&D 3. More than every fourth Euro invested in R&D is invested in the automotive sector. This huge private investment could be further triggered and leveraged by substantial public investments. In particular, high risk R&I areas such as higher levels of automated driving where many boundary conditions are unclear, public funding and investments can play a crucial role to trigger further private investments. Therefore, an open assessment is needed to establish a funding strategy which utilizes the best possible funding instruments for the defined content, targets and tasks. Public and private mechanisms with national and European priorities must be balanced enabling binding but flexible processes with a lean administration, avoiding complex and slow structures. To identify this balanced and coherent funding and financing landscape accelerating the implementation for connected and automated vehicles, it is necessary to screen existing funding structures like e.g. Joint Undertakings, contractual Public Private Partnerships, multi-national initiatives like EUREKA, and national activities. In this chapter overview of selected relevant instruments and programmes is given. Figure 1. Schematic overview of funding structures and instruments at different levels 4. The several blocks are described in more detail in this report. The complexity can be overwhelming due to the very different funding schemes, timelines, rules, authorities, and procedures on national, multi-national and European level. Looking just at the possible synergies between Horizon 2020 and European Structural and Investment Funds (ESIF), one result of a workshop 5 organized by the 3 EU Industrial R&D Investment Scoreboard CEF: Connecting Europe Facility, ECSEL: Electronic Components and Systems for European Leadership, JU: Joint Undertaking, IPCEI Important Project of Common European Interest 5 Workshop on Key Enabling Technologies for Regional Growth, European Commission,

12 European Commission was: There is a mismatch in the speeds, structure and distribution of funds across programmes. It is obviously a challenge to identify real synergies between all these schemes since the most pragmatic approach - one funding scheme for all - is not realistic (and in some cases just not helpful). However, progressive unification of the different sets of funding rules is possible. The most important existing funding and financing instruments and schemes at EU and National level to accelerate the implementation for Connected and Automated Driving (CAD) are described in this chapter European programmes Arising challenges and opportunities from the digitalisation of road transport and progressive implementation of connectivity and automation require immediate attention from public and private sectors. The European industries and the public sector are already engaged in the race for global competitiveness, but the question remains how to streamline, focus and intensive the support to gain the maximum impact. Of course, the European funding framework does not allow for major changes until the finalisation of Horizon 2020 in the year However, for the time after 2020, new opportunities to improve and to shape a coherent funding landscape will arise. A general overview of the EU funding landscape is given below: Figure 2. Overview of EU programs funding or connected to R&I activities and their respective budgets (in million euros) 6 6 Reillon, V., Overview of EU Funds for research and innovation, European Parliamentary Research Service, European Union, Brussels,

13 3.2. Horizon 2020 Horizon 2020 is the largest EU program specifically supporting R&D&I. After deduction of administrative costs, the Horizon 2020 operational budget is estimated to be around 70 billion until Nine Commission Directorates-General are managing the program, but implementation is mainly carried out by e.g. executive agencies or by public-public partnerships between the EU, Member States and industry. Funding opportunities under Horizon 2020 are set out in multiannual work programmes, which cover the large majority of support available. The challenge Smart, Green and Integrated Transport is allocated a budget of million for the period across all transport modes and aims to boost the competitiveness of the European transport industries and achieve a European transport system that is resource-efficient, climate-and-environmentally-friendly, safe and seamless for the benefit of all citizens, the economy and society. These activities are addressed in the Work Programme 2016/2017 by three Calls for proposals 7 : Mobility for Growth Automated Road Transport European Green Vehicles Initiative The main contribution of the Call on Automated Road Transport is to support the shortterm introduction of passenger cars automated driving at level 3, including e. g. truck platooning. Therefore, a focus is on demonstrations of automated driving systems for passenger cars, trucks and urban transport. Demonstrations will be complemented by further research and innovation on digital infrastructure to ensure the necessary level of safety, reliability and efficiency of automated driving systems and by a comprehensive analysis of safety aspects in relation to mixed traffic conditions and their influence on end user acceptance. The call includes also an action to assess road infrastructure requirements for higher levels of vehicle automation. Cooperative systems and connectivity, based on communication of real-time vehicle data, as important means to increase the performance of automated driving are also addressed in other calls, such as Mobility for Growth. There is considerable complementarity between the development and deployment of Intelligent Transport Systems and that of Automated Road Transport. ICT components e.g. sensors and microsystems and data fusion which are important elements of automated road transport will be addressed in the LEIT/ICT Work Programme, as well as in the ECSEL Joint Undertaking. The Internet of Things addresses a pilot on Autonomous vehicles in a connected environment which focuses on technology research in a broader IoT context, including horizontal elements such as ethics and privacy, trust and security, validation, standards and interoperability, user acceptability and human factor, liability and sustainability. There is also complementarity with the LEIT/Space Work Programme part, in particular with the call Applications in Satellite Navigation Galileo, topic Galileo EGNSS Transport. Figure x: Overview of H2020 funding opportunities related to CAD and C-ITS 7 European Commission: Horizon Work Programme , transport_en.pdf, accessed on November 23,

14 Summary (figures related to CAD and C-ITS) Horizon 2020 Automated Road Transport (ART) 2016/17-114m Seven calls, covering various CAD topics (ICT infrastructure, automation pilots, platooning, safety & user acceptance, road infrastructure, coordination, full-scale demonstration of CAD vehicles) Mobility for Growth (MG) 2016/17-27m MG (Innovative concepts, systems & services for Mobility as a service) MG (Large-scale demonstration(s) of cooperative ITS) MG (Roadmaps, awareness raising, business models, support for roll-out of ITS) MG (Big data in Transport) Internet of Things (IOT) 2016/17 - Approx. 20m Call IoT , Pilot 5 (Autonomous vehicles in a connected environment) Information and Communication Technologies (ICT) 2016/17-25m Call ICT (Large Scale Pilot actions in sectors best benefitting from data-driven innovation) Applications in Satellite Navigation Galileo m GALILEO (EGNSS Transport applications) Total Estimated annual funding budget related to CAD and C-ITS: approx. 100m The wide variety of tools for R&I funding in Horizon 2020 allows to specifically call for projects for each purpose. Figure 3 relates different funding instruments in Horizon 2020 to the level of (technical) maturity (i.e. market readiness) against the need for collaboration (i.e. large, multipartner collaborations). 14

15 Figure 3. Innovation support in Horizon Contractual Public Private Partnership (cppp) The contractual public-private partnerships (cppp) are considered as success stories due to their nature of combining and prioritising R&D topics with relevant stakeholders, leveraging private money with public investments and at the same time delivering convincing benefits for society. Nine cppps are currently established with some of them dealing with topics related to Connected and Automated Driving (CAD) (e.g. 5G, Cybersecurity) Factory of the Future (EFFRA) Energy-efficient Buildings (E2B) Green Vehicles Initiative (EGVI) Future internet (5G) Sustainable Process Industry (Spire) Robotics (SPARC) Photonics High Performance Computing Big Data 8 ( ) 15

16 In this partnership tool (i.e. cppp) a contract between an industrial research and innovation association and the EC builds the foundation for a firm and transparent agreement. The PPP is based on roadmaps for research and innovation activities which are the result of an open consultation process among the stakeholders and which have been positively evaluated by the European Commission with the help of independent experts. In contrast to the Joint Technology Initiatives (JTIs) being set up under Horizon 2020, the contractual PPPs do not organise their own calls but funding is awarded by the Commission through open calls under the Horizon 2020 Work Programme. Examples: green vehicle initiative, 5G network Joint Technology Initiative (JTI) This long-term Public-Private-Partnership tool addresses strategic areas where research and innovation are essential to European competitiveness. Since FP7, JTIs support large-scale multinational research activities. JTI are jointly financed by the EU, member states and industry. The administrative burden is high to both setup and execute a JTI (e.g. two proposals are required for an EU evaluation part and a national evaluation). Examples: ECSEL, shift2rail, SESAR ERA-NET ERA-NET Co-fund have been designed in Horizon 2020 to strengthen the collaboration among Member States. This transnational programme instrument supports public-public partnerships in their preparation, establishment of networking structures, design, implementation and coordination of joint activities as well as topping up of joint calls and actions. The ERA-NET under Horizon 2020 merges the former ERA-NET and ERA-NET Plus into a single instrument implementing one substantial call with top-up funding from the EC. The focus of ERA-NETs is therefore shifting from the funding of networks to the top-up funding (33% of national funding) of single joint calls for transnational research and innovation in selected areas with high European added value and relevance for Horizon Program owners are typically national/regional ministries/authorities responsible for defining, financing or managing research programmes carried out at national or regional level while programme managers are typically funding agencies that implement research programs under the supervision of the program owners. Example: ERANET Transport, emobility+ Summary (figures not entirely related to CAD) Horizon 2020 Automated Road Transport (ART) 2016/17-114m Seven calls, covering various C&AD topics (ICT infrastructure, automation pilots, platooning, safety & user acceptance, road infrastructure, coordination, full-scale demonstration of CAD vehicles) Mobility for Growth (MG) 2016/17-27m MG (Innovative concepts, systems & services for 16

17 Mobility as a service) MG (Large-scale demonstration(s) of cooperative ITS) MG (Roadmaps, awareness raising, business models, support for roll-out of ITS) MG (Big data in Transport) Internet of Things (IOT) 2016/17 - Approx. 20m Call IoT , Pilot 5 (Autonomous vehicles in a connected environment) Information and Communication Technologies (ICT) 2016/17-25m Call ICT (Large Scale Pilot actions in sectors best benefitting from data-driven innovation) Applications in Satellite Navigation Galileo m GALILEO (EGNSS Transport applications) Total Estimated annual funding budget related to Connected & Automated Driving: approx. 100m 3.3. Connecting Europe facility (CEF) Connecting Europe facility (CEF) supports the development of high performing, sustainable and efficiently interconnected trans-european networks in the fields of transport, energy and digital services. CEF investments fill the missing links in Europe s energy, transport and digital backbone. It facilitates cross-border interaction between public administrations, businesses and citizens. In addition to grants, the CEF offers financial support to projects through innovative financial instruments such as guarantees and project bonds. In the transport sector, CEF concentrates on co-financing TEN-T projects with billion. The funding is mainly used to complete the TEN-T core network and its corridors by The vast majority will be used for cross border projects addressing main bottlenecks on the 9 TEN-T multimodal core network corridors which carry large amounts of goods and process a high amount of passenger flows. They connect international gateways and economic areas throughout all Member States and link TEN- T with regional infrastructure. European Coordinators facilitate and coordinate the identification, planning, and implementation of numerous projects of the network corridors. In a recent paper the European Coordinators emphasized that TEN-T and its core network corridors could become a new space of innovation. Recommendation of the Corridor Managers for action 9 : o TEN-T corridors should become first implementers of R&I results o Improve coordination between H2020 and CEF Work Programmes o Enhance interaction between transport R&I and Corridor Coordinators o Establish a new process for clustering R&I and deployment projects 9 Balázs, P.; Cox, P.; Trautmann, C.; Wojciechowski, P.; Brinkhorst, L.-J.; Grosch, M.; Peijs. K.: TEN-T Corridors. Forerunners for a forward-looking European Transport System Issue Paper TEN-T DAYS2016, Rotterdam,

18 o Develop a deployment progress map on the roll-out of new technologies and innovation o Identify an adequate budget for transport R&I, market-sided Innovation and deployment of R&I solutions Example: NordicWay, Scoop@F, I_HeEro, Next ITS2 CEF Summary (figures not entirely related to CAD) 2016 CEF Multi-Annual Work Programme - Intelligent Transport Systems for Road (ITS) - 120m Main focus on Cooperative ITS (C-ITS) services and automation & Intelligent transport services for road Total Estimated annual funding budget related to CAD: 120m 3.4. European Investment Bank (EIB) The EIB gives has provided loans to the automotive industry for innovative research, development and innovation projects with potential to transform the industry. These include breakthrough technologies and more innovative projects across all technologies with primary objective the improvement of fuel and energy efficiency, reduction of emissions, and increase in safety which is the relevant theme through which the Bank can finance projects related to automated and connected vehicles. The financed projects are designated to exceed legislative requirements, set the best practice in the industry and address the orientations of forthcoming legislation and their scope can extend from the development to the deployment of breakthrough technologies (E.g.: first set of tools for large-scale production, demonstration/pilot plants, pilot projects etc.). The counterparts eligible for EIB financing can be private companies, including OEMs, Suppliers, Telecoms and ICT companies, Municipalities, Joint Ventures undertaking for example R&D activities in the area of Connected and Automated vehicles, development and deployment of pilot projects with a limited number of vehicles, deployment of relevant ICT infrastructure, preparation of physical infrastructure (roads with specific marking, signalisation...). The loans can cover up to 50% of the project investment which can be composed of the related operating expenditures such as personnel costs, contract research, consumables, overheads and capital expenditures such as facilities, equipment, acquisition of tangible & intangible assets, if a prerequisite etc. The projects must be economically viable, consistent with European Union policies, technically viable, and the counterparts capable of repaying the loans under the agreed conditions. The lending guidelines in the transport sectors are described in the Bank s Transport Lending policy Multi-national Funding: EUREKA Cluster A EUREKA-Cluster is an alternative to an ERA-NET without utilizing European budget from Horizon EUREKA is a publicly-funded, intergovernmental network, involving over 40 countries. Its aim is to enhance European competitiveness by fostering innovation-driven entrepreneurship and raising the productivity and competitiveness of European businesses through technology. 18

19 One of EUREKA s early projects was PROMETHEUS. The Programme for a European Traffic of Highest Efficiency and Unprecedented Safety is an excellent success story for an automotive research programme starting in 1986 until It defined the state of the art of autonomous vehicles at that time (countries involved: United Kingdom, Austria, Sweden, Norway, Netherlands, Italy, France, Finland, Germany, Switzerland, Belgium). Prometheus ultimately received about 750 million in funding and has become one of the most influential endeavours in transport technology that the world ever has seen. Many research results have been successfully introduced. Every car on the market exhibits to some extend technologies and research results of this programme. Examples: ITEA3, PENTA, EURIPIDES, Celticplus Figure 4. Finding one s destination with the help of a computer: Among other things, the Prometheus team developed an electronic road map. PROMETHEUS was a pioneering initiative between 1987 and 1995 (Photo: Daimler AG). Eureka Summary (figures not entirely related to CAD) Clusters o ITEA3 (Software Technologies): 16m related to CAD in 2016 o PENTA (Nano- and Microelectronics): Share for Connected & Automated Driving unknown o EURIPIDES²: 3m related to CAD in 2013 Network Projects approx. 5m annually related to CAD Total Estimated annual funding budget related to CAD: 20m 3.6. Important project of common European interest (IPCEI) Taking the global competition into account, the High Level Group on Key Enabling Technologies 10 recommended launching a multi-national large scale funding initiative in strategic industrial domains like Connected & Automated Driving. As one suitable 10 High Level Expert Group on Key Enabling Technologies, Final Report, Time to Act, June

20 funding instrument the High-Level Group emphasized an Important Project of Common European Interest (IPCEI), an option given in the EU treaties. In short, an IPCEI is a state-aid instrument to facilitate public funding at an unprecedented level. It aims at facilitating the implementation of major projects that make a significant contribution to the competitiveness of EU industry and are often difficult to finance because of their significant technological or financial risks and the necessary transnational cooperation. It can go beyond any existing European or national funding scheme in scope, objective, and budget. The European Commission highlighted the importance of this new funding instrument and gives guidance on the implementation of IPCEI 11. Member States take a vital role in financing but the EC can contribute to the funding as well. In any case, the EC (DG Competition) must approve an IPCEI due to state aid law and for compatibility with internal market. The EC has defined criteria for setting up an IPCEI such as: Important contribution to the achievement of the Union's objectives Involve more than one MS & benefits extend to a substantial part of the EU Spill-over effects: benefits are wider than participating undertakings, sector Co-financing by the beneficiaries Respect of the principle of phasing out environmental harmful subsidies Of course, an IPCEI should build on and learn from existing activities (like the ECSEL JU on electronics), it can combine and integrate them and it must be open for all relevant stakeholders. In case of aid to a project of first industrial deployment that follows on from an R&D&I activity, the capital and operating expenditures (CAPEX, OPEX) are eligible for funding as well. Furthermore, the state aid can cover up to 100% of the funding gap. The joint scope adds the value. IPCEIs are on top of the political agenda in the EU and several member states. Currently, DG Enterprise is doing a value chain analysis on CAD with a view on the benefits of an IPCEI for Connected & Automated driving because it could have a global impact on the competitiveness of the European industry and be of particular interest for industrialisation, setting up production facilities, and predeployment topics since it bridges the valley of death (see figure 5). 11 Criteria for the analysis of the compatibility with the internal market of State aid to promote the execution of important projects of common European interest, European Commission (2014/C 188/02) 20

21 Figure 5. The so-called Valley of Death needs to be crossed, to transform a laboratory prototype into a product ready for full-scale production and industrialization National programmes Complementing the previous sections with funding and financing programmes and instruments at European level, this section presents a diversified sample of national funding structures 13. Countless small and mid-size funding programs and structures are available throughout Europe at national, regional, or even local levels. Therefore, the most relevant examples from EU member states are presented below. They provide a broad picture of the available opportunities and possible applications Germany Funding schemes Federal Ministry of Education and Research Federal Ministry of Transport and Digital Infrastructure Federal Ministry of Economic Affairs Self-determined and secure in the digital world (open program, , e.g. including 2016 call IT-Security and autonomous driving ) - 35 annually Human Machine Interaction (open programme, ) - 70m p.a. for all kind of applications also outside transport) Reliable, intelligent and efficient electronics for E-Mobility (2017 call focusing on reliable and fail-operational systems for e-vehicles incl. with regard to automation) approx. 30m in 2017 Automation and Connectivity in Road Traffic (open program with focus on digital test environments, ) - 80m in total mfund: focus on digital innovations related to connected mobility using cloud data; programme mainly for new business ideas and startups, ) 20m annually New Vehicle and System Technologies (open program with two pillars: automated driving + innovative vehicles in general, Source: "Multi-KETs Pilot Lines" The part on national funding schemes refers to the data collected within the EU project SCOUT (Safe and Connected Automation in Road Transport), a CSA co-funded by the EU. 21

22 and Energy Other Total 2018, e.g. 2015/16 call on Highly and fully automated driving for sophisticated driving situations ) - 50m annually Technology open funding programs and regional funding e. g. KMU Innovativ, share for CAD unknown Estimated annual funding budget related to CAD: 60-80m Funding priorities & targets National Strategy on Objective: Germany being the leading provider and leading market for C&AD developed C&AD technology; encompassing funding schemes with various foci, and steered by a including: Round Table human-machine-interaction microelectronic components field operational tests on highways and urban scenarios traffic management IT-security connectivity & communication social acceptance United Kingdom Funding schemes Department for Business, Energy and Industrial Strategy UK-Connected and Autonomous Vehicles Research and development programme ( ) with a total budget of 115m Comments: Administered by the newly established Centre for Connected & Autonomous Vehicles and delivered by INNOVATE-UK First competition 2015/16 (broad focus incl. connectivity, autonomy, customer interaction)- 20m ( 23m) Second competition 2016/17 (broad focus incl. C&AD test vehicle demonstrations in various environments, connectivity, safety & security) - up to 35m ( 40m) Additional funding opportunities (e.g. autonomous systems in general) with unknown share for CAD Total Estimated annual funding budget related to CAD: 25m Funding priorities & targets Shuttle systems (pods) for urban use cases Field Operational Tests for automated driving (in cooperation with local authority districts) Spain Funding schemes Ministry of Talent and employment in R&D&I - 310m 14 * in 2016 * Estimated share for connected and automated driving. 22

23 Economy and Competitiveness Ministry of Industry, Energy and Tourism Government of Catalonia Agency for Business Competition total Excellent technical and scientific research - 183m* in 2016 Industrial Leadership - 494m* in 2016 R&D&I to societal challenges bn* in 2016 Strategic Action Economy and Digital Society: funding of projects related to information and communications technologies - 60m* in 2016, 20m* in 2017 Government of Catalonia Agency for Business Competition Estimated annual public funding budget related to CAD: unknown Austria Funding schemes Ministry of Mobility of the Future - approx. 5m annually Transport, o 2015/16 (infrastructure, connectivity and vehicle technologies)- Innovation and 3.5m o 2016/17 (CAD test environments) m Technology o 2017/18 (infrastructure, connectivity and vehicle technologies)- 5m Information and Communication Technologies of the Future o Related to Connectivity & Communication in general o Variable budget, tentatively up to 5m annually on CAD total Estimated annual public funding budget related to CAD: up to 10m Finland Funding schemes Ministry of transport and communications total AURORA: Automated driving, transport infrastructure and connected cars, intelligent infrastructure asset management: 2m-3m in 2017/2018 Estimated annual public funding budget related to CAD: 2m - 3m annually (in 2017/2018) France Funding schemes National agenda Nouvelle France Industrielle : > 30m of public funding on C&AD total Programmes Investments for the future 2015/2016 Call Future vehicles and transport 250m* o 3 streams: vehicle performance improvement, connected and automated vehicles, innovative mobility services 2015/2016 Call The vehicle in its environment - 30m* o No dedicated CAD focus, but related topics (smart traffic and vehicle control, environment data collection & share) Funding via VEDECOM (PPP) Main research fields: e-mobility, CAD Budget of 300m* over 10 years (funding: 1/3 public, 1/3 industry, 1/3 other) Estimated annual public funding budget related to CAD: unknown 23

24 Funding priorities & targets Programmes Investments for the future 2015/2016 Call Future vehicles and transport 250m* - 3 streams: vehicle performance improvement, connected and automated vehicles, innovative mobility services 2015/2016 Call The vehicle in its environment - 30m* - No dedicated CAD focus, but related topics (smart traffic and vehicle control, environment data collection & share) Funding via VEDECOM (PPP) Main research fields: e-mobility, CAD Budget of 300m* over 10 years (funding: 1/3 public, 1/3 industry, 1/3 other) Belgium Funding schemes & targets Flemish Department Autonomous vehicle and Infrastructure Cooperative Architecture of Economy, (AVICA; 2015ff) 4.1m (It remains unclear to which period this Science & budget refers) Innovation R&D pursued by Flanders Make (strategic research center), academia & industry Focus on functional safety, path planning, GPS positioning total Estimated annual public funding budget related to CAD: unknown Netherlands Funding schemes & targets Ministry for Intelligent Transport Systems (ITS) programs ( ) - 70m* Infrastructure and Beter Benutten /Optimizing Use (smart and efficient use of existing the Environment + infrastructure and telecommunications capabilities, enhancing 12 regions connectivity, merging & distribution of public and private data) Large scale deployment of road communication & connectivity (V2I) Dutch Automated Vehicle Initiative (DAVI) total Sweden infrastructure PPP with the goal of investigating and demonstrating CAD on public roads Estimated annual public funding budget related to CAD: unknown Funding schemes & targets Swedish Transport DriveMe (Field Operational Tests with 100 vehicles) m Administration annually VINNOVA Drive Sweden (C&AD innovation program) - 1.5m annually (innovation agency) Swedish Energy FFI (Strategic Vehicle Research and Innovation: partnership between Agency, the Swedish government and the automotive industry) m VINNOVA, annually on C&AD Swedish Transport Administration total Estimated annual public funding budget related to CAD: 15m 24

25 Italy Funding schemes & targets Transporti Italia C&AD has a high priority in the Strategic Research Agenda (SRA) 2020 (Technology cluster comprising Public funding instruments are under preparation actors from the None of the existing funding schemes is currently dedicated to C&AD government, industry and academia) total Estimated annual public funding budget related to CAD: unknown 25

26 4. GAP ANALYSIS The purpose of the gap analysis was to match available funding and financing mechanisms and tools with identified challenges for the introduction of automated and connected vehicles. This revealed the current situation and guided the discussion towards a more coherent funding and financing landscape, addressing each phase described in chapter Analysis and conclusion The analysis was done based on the data received from individual Member States as well as presentations given from European institutions (EC, EIB, INEA,..) and European Programme Managers (EUREKA, ) during the GEAR 2030 WG2 PT2 Meetings. In addition, the data collected and presented in the national funding schemes refers to the data collected within the EU project SCOUT (Safe and Connected Automation in Road Transport) and CARTRE, both CSA co-funded by the EU on Connected and Automated Driving. [ ] The main questions in the gap analysis were: Do we have appropriate tools or mechanisms (as described in chapter 3) available to address all identified points from chapter 2? Are these tools ideal to accelerate the implementation and successful introduction of Connected and Automated Vehicles across Europe? What programme strategies are in place regarding automated and connected driving in the member states and in Europe? Is there consistency and coherence on a European scale? What is the optimisation potential and in which areas? Are there sufficient means to create the innovation friendly climate and conditions initiating real technology breakthroughs and real innovations? (vs. using the "routine" R&I-notion while indeed talking about research, or R&D) [ ] The analysis revealed several items: Connected and Automated Driving is visible in European research and innovation strategies. Both, European and national level have tools for funding and financing Both, European and national level Connected and Automated Driving are calling for R&I projects due to the interest in the topic. There is a lack of coherence in public funding strategies and knowledge exchange between the member states (and to some extent the European funding programmes) to jointly prioritise. A common strategy for Europe to implement (and/or accelerate implementation) for connected and automated driving is missing. To generate and realise impact successful market introduction and market penetration is needed. Therefore, research needs to focus on delivering industrial relevant results and keep in view the successful market introduction. 26

27 Pre-deployment and research activities need proper planning to overcome barriers for implementation or the valley-of-death. The term research and innovation or R&I is widely used, still there is little explicit attention to the true innovation aspects. Funding Mechanism Pros Cons Contractual Public Private Partnership (cppp) - long-term perspective / strategy - Com / industry engagement - binding commitment - proven & well known funding scheme - stakeholder driven - target oriented A cppp for Connected & - Member States indirect involved - cppp need legal organizations Conclusion: Automated Driving could be foreseen as an option in the next EU framework program (FP9, for 2020ff). Joint Technology Initiative (JTI) This long-term Public-Private- Partnership tool addresses strategic areas where research and innovation are essential to European competitiveness. Examples: ECSEL, shift to rail, SESAR) ERA-NET Co-found This transnational programme instrument supports public-public partnerships Example: ERANET Transport, emobility+ - long-term perspective / strategy - Com / industry engagement - binding commitment - proven & well known funding scheme - stakeholder driven - target oriented - high effort to start - high admin. burden for project participants due to double proposal writing (if tripartite funding) - uncertain national co-funding budgets Conclusion: Administrative efforts for a JTI are huge; For certain areas such as (pilot) production lines in electronics (in ECSEL) the structure seems suitable. - technology open (TRL) but application topic focussed - high flexibility for call topics - Co-ordination of national funding policies possible - incentive for national authorities to join - proven, well-established funding scheme - Call is part of the Work Programme and national calls - Initial effort to activate/inform national authorities (program committee?) Conclusion: An ERA-NET for Connected & Automated Driving with a focus on trans-national innovation activities could very well complement a cppp. Connecting Europe facility (CEF). - proven, well-established funding scheme - Call is currently open - Commitment from MS is mandatory - Initial effort to activate/inform national authorities (program committee? - Corridor Coordinators highly interested in innovation - Focus on deployment, no R&D - Infrastructure development history and focus, automation and C-ITS first time addressed at all - funding of infrastructure, less research innovation 27