Structuring the Waterborne transport sector, including through changed business and industrial models in order to achieve commercial zero-emission waterborne transport (ZEWT Partnership)

Call Information
Call Title
Structuring the Waterborne transport sector, including through changed business and industrial models in order to achieve commercial zero-emission waterborne transport (ZEWT Partnership)
Call Reference
HORIZON-CL5-2024-D5-01-16
Funding Programme
Scope and expected outcomes

ExpectedOutcome:

Project outputs and results are expected to contribute to the following expected outcomes:

  • A full understanding of the business model, labour, financial and commercial barriers to the take up of innovative low and/or zero emission solutions for waterborne transport, including consideration of ship financing and investment structures, charter and other contracts.
  • Identification of potential solutions to overcome business model and commercial barriers to the take up of innovative low and zero emission solutions in waterborne transport.
  • Understanding of the industrial capacity and how it would be scheduled to retrofit and/or replace the current European fleet to meet 2030 and 2050 emission reduction and pollution targets. Considering all vessels operating within the European region, including inland waterway transport vessels, short sea shipping services (including ferries and cargo vessels), cruise and offshore vessels;
  • Increase commitment from the wider waterborne sector, including finance, contracting insurance, charterers, operators, owners, public stake holders, technology providers as well as civil society towards recognizing the importance of European waterborne transport, its environmental objectives and the consequential economic impacts.

Scope:

The European Green Deal sets ambitious objectives to transform Europe into the first climate neutral continent by 2050 This presents a valuable opportunity for the European industry, and in particular for the waterborne transport sector, where Europe leads in high technology and green energy efficient shipping development. Also digitalisation has an impact on reducing emissions and increasing efficiency, while increasing safety, security, and reliability of the waterborne transport, and therefore is already impacting the business models and dynamics of the sector.

Whilst Europe is still a worldwide leader in advanced, digital and green shipping, there is a lack of take up of new technologies within the wider waterborne transport market. In part, this is a reflection of the sectors' conservatism and reluctance to change unless driven by regulation. It is also hindered by the complex commercial structures and finance models which can distance the interests of ship owners who commission new builds, financiers who commoditise vessel value by type, operators who can benefit from lower fuel consumption as well as cargo owners who may benefit from ‘environmentally friendly image’ and final points of sale where the use of low emission shipping can be a potential commercial advantage. Whilst new business models and labelling schemes to better incentivize green shipping have been developed, they are yet to be widely established and are largely unknown. There is a need to objectively analyse the segments of the waterborne transport sector, and within each segment characterize the business models, identify the barriers to the take up innovative low and zero-emission waterborne transport solutions and in cooperation with the stakeholders to propose commercial models which can provide a better incentive for increasing the investment in low or zero-emission solutions in the European waterborne transport sector.

Furthermore, it is important to increase awareness of the public and the broader non research waterborne sector about the economic and environmental importance of the European waterborne transport sector, highlighting its commitment, ability and opportunities to develop and implement competitive solutions which will meet the ambitious objectives reflected in the European Green Deal.

To ensure a coordinated approach to develop zero-emission, digital, automated and competitive European waterborne transport the participation of all types of both private and public stakeholders, including financiers, charterers and others within the commercial side of the waterborne business community should be envisaged. Cooperation with relevant existing initiatives, like the European Sustainable Shipping Forum, CESNI, the Waterborne Technology Platform and others, will be key. In addition, it should be ensured that proposals take into account the results of relevant R&I projects (including Horizon 2020 and Horizon Europe) and relevant studies. Proposals should address all of the following:

  • Identify business models and the financial and commercial barriers to the take up of innovative low and/or zero emission solutions for waterborne transport. The financial investment, labelling and contract structures as well as the new possibilities enabled by digitalisation should be considered. An analysis of the different responsibilities and business motivations between charterer, cargo owner, ship owner, point of sale etc. should also be taken into account.
  • Analyse the needs and timing to retrofit and replace the current European fleet (including inland waterway transport vessels, ferries, short sea shipping, cruise ships and offshore vessels). The analysis should be combined with an overview of the European capacity (with respect to technology and skilled workforce) available to retrofit these vessels and identify any capacity gaps for the timely implementation of the European Green Deal emission targets;
  • Provide an analysis of where disincentives exist to the increased deployment of innovative low and/or zero emission and smart shipping, within different market segments/ The analysis should consider for example the investment decision cycle: finance models, bunkering and fuel supply infrastructure, availability, longevity and costs of technologies, possibilities to retrofit/build a vessel timely, properly skilled workforce, etc. and propose incentives and improvements to the business models such as new contract models and financing structures.;
  • Organise specific communication and exploitation activities towards relevant stakeholders outside the participants of the project to ensure that all stakeholders from EU Member States/Associated countries are informed about the solutions developed;
  • To assure a beneficial societal impact from the activities, relevant social science and humanities expertise are expected to be taken into account, including the active contribution from SSH experts and/or institutions.

This topic implements the co-programmed European Partnership on ‘Zero Emission Waterborne Transport’ (ZEWT). As such, projects resulting from this topic will be expected to report on results to the European Partnership ‘Zero Emission Waterborne Transport’ (ZEWT) in support of the monitoring of its KPIs.

Destination

Clean and competitive solutions for all transport modes (2023/24)

This Destination addresses activities that improve the climate and environmental footprint, as well as competitiveness, of different transport modes.

The transport sector is responsible for 23% of CO2 emissions and remains dependent on oil for 92% of its energy demand. While there has been significant technological progress over past decades, projected GHG emissions are not in line with the objectives of the Paris Agreement due to the expected increase in transport demand. Intensified research and innovation activities are therefore needed, across all transport modes and in line with societal needs and preferences, in order for the EU to reach its policy goals towards a net-zero greenhouse gas emissions by 2050 and to reduce significantly air pollutants.

The areas of rail and air traffic management will be addressed through dedicated Institutional European Partnerships and are therefore not included in this document.

This Destination contributes to the following Strategic Plan’s Key Strategic Orientations (KSO):

  • C: Making Europe the first digitally enabled circular, climate-neutral and sustainable economy through the transformation of its mobility, energy, construction and production systems;
  • A: Promoting an open strategic autonomy[[ ‘Open strategic autonomy’ refers to the term ‘strategic autonomy while preserving an open economy’, as reflected in the conclusions of the European Council 1 – 2 October 2020.]] by leading the development of key digital, enabling and emerging technologies, sectors and value chains to accelerate and steer the digital and green transitions through human-centred technologies and innovations.

It covers the following impact areas:

  • Industrial leadership in key and emerging technologies that work for people;
  • Smart and sustainable transport.

The expected impact, in line with the Strategic Plan, is to contribute “Towards climate-neutral and environmental friendly mobility through clean solutions across all transport modes while increasing global competitiveness of the EU transport sector", notably through:

  • Transforming road transport to zero-emission mobility through a world-class European research and innovation and industrial system, ensuring that Europe remains world leader in innovation, production and services in relation to road transport (more detailed information below).
  • Accelerating the reduction of all aviation impacts and emissions (CO2 and non-CO2, including manufacturing and end-of-life, noise), developing aircraft technologies for deep reduction of greenhouse gas emissions, and maintaining European aero-industry’s global leadership position (more detailed information below).
  • Accelerate the development and prepare the deployment of climate neutral and clean solutions in the inland and marine shipping sector, reduce its environmental impact (on biodiversity, noise, pollution and waste management), improve its system efficiency, leverage digital and EU satellite-navigation solutions and contribute to the competitiveness of the European waterborne sector (more detailed information below).
  • Devising more effective ways for reducing emissions and their impacts through improved scientific knowledge (more detailed information below).

Several levels of interactions are foreseen with other European initiatives, in particular with the Industrial Battery Value Chain (BATT4EU) partnership, the Cooperative Connected and Automated Mobility (CCAM) partnership and the Mission on Climate Neutral and Smart Cities, in particular:

  • Joint topic “2ZERO – BATT4EU” D5-1-4 B - Innovative battery management systems for next generation vehicles (2ZERO & Batteries Partnership) (2023)
  • Joint topic “CCAM – 2ZERO – Mission on Climate Neutral and Smart Cities” D5-1-5 Co-designed smart systems and services for user-centred shared zero-emission mobility of people and goods in urban areas (2ZERO, CCAM and Cities’ Mission) (2023)

Zero-emission road transport

Main expected impacts:

  • Affordable, user-friendly charging infrastructure concepts and technologies that are easy to deploy with a wide coverage of urban spaces and of the road network and include vehicle-grid-interactions, ready for mass electrification of passenger and freight road transport.
  • Accelerated uptake of affordable, user-centric solutions for optimised energy efficiency and energy flexibility (vehicles and services).
  • Effective design, assessment and deployment of innovative zero-emission solutions for the clean road transport challenge.
  • Innovative demonstrations use cases for the integration of zero tailpipe emission vehicles, and infrastructure concepts for the road mobility of people and goods.
  • Increased user acceptability of zero tailpipe emission vehicles, improved air quality, a more circular economy and reduction of environmental and health[[These aspects are also dealt with in the specific “Impact of transport on environment and human health” section]] impacts.
  • Support EU leadership in world transport markets at component, vehicle and transport system level, including related services.

Aviation

Main expected impacts:

  • Disruptive low TRL technologies that have potential to lead to 30% reduction in fuel burn and CO2, by 2035, between the existing aircraft in service and the next generation, compared to 12-15% in previous replacement cycles (when not explicitly defined, baselines refer to the best available aircraft of the same category with entry into service prior to year 2020).
  • Disruptive low TRL technologies that have potential to enter into service between 2035 and 2050, based on new energy carriers, hybrid-electric architectures, next generation of ultra-high efficient engines and systems, advanced aerostructures that will enable new/optimised aircraft configurations and their cost-competitive industrialisation.
  • New technologies for significantly lower local air-pollution and noise.
  • Increased understanding and analysis of mitigation options of aviation’s non-CO2 climate impacts.
  • Accelerated uptake of sustainable aviation fuels in aviation, including the coordination with EU Member States/Associated countries and private initiatives.
  • Maintain global competitiveness and leadership of the European aeronautics ecosystem. Focus on selected breakthrough manufacturing and repair technologies that have high potential to lower the overall operating cost.
  • Further develop the EU policy-driven planning and assessment framework/toolbox towards a coherent R&I prioritisation and timely development of technologies in all three pillars of Horizon Europe. Contribute to the mid-term Horizon Europe impact assessment of aviation research and innovation.

Waterborne transport

Main expected impacts:

  • Increased and early deployment of climate neutral fuels, and significant electrification of shipping, in particular intra-European transport connections.
  • Increased overall energy efficiency and use of renewable energies such as wind to drastically lower fuel consumption of vessels. This is increasingly important considering the likelihood of more expensive alternative fuels, where in some cases the waterborne sector will have to compete with other transport modes.
  • Enable the innovative port infrastructure (bunkering of alternative fuels and provision of electrical power) needed to achieve zero-emission waterborne transport (inland and maritime).
  • Enable clean, climate-neutral, and climate-resilient inland waterway vessels before 2030 helping a significant market take-up and a comprehensive green fleet renewal which will also help modal shift.
  • Strong technological and operational momentum towards achieving climate neutrality and the elimination of all harmful pollution to air and water.
  • Achieve the smart, efficient, secure and safe integration of maritime and inland shipping into logistic chains, facilitated by full digitisation, automation, resilient and efficient connectivity.
  • Enable safe and efficient fully automated and connected shipping (maritime and inland).
  • Competitive European waterborne industries, supporting employment and reinforcing the position of the European maritime technology sector within global markets. Providing the advanced green and digital technologies which will support European jobs and growth.

Impact of transport on environment and human health

Main expected impacts:

  • The reduction of road vehicle polluting emissions (looking at both regulated, unregulated and emerging ones) from both existing and future automotive fleets in urban and peri-urban areas.
  • The better monitoring of the environmental performance and enforcement of regulation (detection of defeat devices, tampered anti-pollution systems, etc.) of fleets of transport vehicles, be it on road, airports and ports.
  • Substantially understand and provide solutions to reduce the overall environmental impact of transport (e.g.: as regards biodiversity, noise, pollution and waste) on human health and ecosystems.
Conditions

General conditions

1. Admissibility conditions: described in Annex A and Annex E of the Horizon Europe Work Programme General Annexes

Proposal page limits and layout: described in Part B of the Application Form available in the Submission System

2. Eligible countries: described in Annex B of the Work Programme General Annexes

A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects. See the information in the Horizon Europe Programme Guide.

3. Other eligibility conditions: described in Annex B of the Work Programme General Annexes

If projects use satellite-based earth observation, positioning, navigation and/or related timing data and services, beneficiaries must make use of Copernicus and/or Galileo/EGNOS (other data and services may additionally be used).

4. Financial and operational capacity and exclusion: described in Annex C of the Work Programme General Annexes

5. Evaluation and award:

  • Award criteria, scoring and thresholds are described in Annex D of the Work Programme General Annexes

  • Submission and evaluation processes are described in Annex F of the Work Programme General Annexes and the Online Manual

  • Indicative timeline for evaluation and grant agreement: described in Annex F of the Work Programme General Annexes

6. Legal and financial set-up of the grants: described in Annex G of the Work Programme General Annexes

 

Eligible costs will take the form of a lump sum as defined in the Decision of 7 July 2021 authorising the use of lump sum contributions under the Horizon Europe Programme – the Framework Programme for Research and Innovation (2021-2027) – and in actions under the Research and Training Programme of the European Atomic Energy Community (2021-2025). [[This decision is available on the Funding and Tenders Portal, in the reference documents section for Horizon Europe, under ‘Simplified costs decisions’ or through this link: https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/guidance/ls-decision_he_en.pdf]].

Specific conditions

7. Specific conditions: described in the specific topic of the Work Programme

 

 

Documents

Call documents:

Standard application form call-specific application form is available in the Submission System

Standard application form (HE RIA, IA)

Standard application form (HE RIA IA Stage 1)

Standard application form (HE CSA)

Standard application form (HE CSA Stage 1)

Standard evaluation form will be used with the necessary adaptations

Standard evaluation form (HE RIA, IA)

Standard evaluation form (HE CSA)

Standard evaluation form (HE RIA, IA and CSA Stage 1)

MGA

HE General MGA v1.0

HE Unit MGA v1.0

Lump Sum MGA v1.0

Call-specific instructions

Detailed budget table (HE LS)

Information on financial support to third parties (HE)

Guidance: "Lump sums - what do I need to know?"

Additional documents:

HE Main Work Programme 2023–2024 – 1. General Introduction

HE Main Work Programme 2023–2024 – 8. Climate, Energy and Mobility

HE Main Work Programme 2023–2024 – 13. General Annexes

HE Programme Guide

HE Framework Programme and Rules for Participation Regulation 2021/695

HE Specific Programme Decision 2021/764

EU Financial Regulation

Rules for Legal Entity Validation, LEAR Appointment and Financial Capacity Assessment

EU Grants AGA — Annotated Model Grant Agreement

Funding & Tenders Portal Online Manual

Funding & Tenders Portal Terms and Conditions

Funding & Tenders Portal Privacy Statement

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