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Supporting Analysis for an Impact Assessment on the Future Funding of EU Participation in ITER Project and Broader Approach (BA) Activities Under the Next MFF

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Supporting Analysis for an Impact Assessment on the Future Funding of EU Participation in ITER Project and Broader Approach (BA) Activities Under the Next MFF Ref. Ares(2018)3865709 - 20/07/2018 ORIGINAL Supporting Analysis for an Impact Assessment on the Future Funding of EU Participation in ITER Project and Broader Approach (BA) Activities under the next MFF Specific Tender under Framework Contract ENER/A4/516-2014 Final Report Contract details European Commission, DG Energy (ENER) – Unit D.4 Service request under framework contract ENER/A4/516/2014 Supporting Analysis for an Impact Assessment on the Future Funding of EU Participation in ITER Project and Broader Approach (BA) Activities under the next MFF Presented by Trinomics B.V. Westersingel 34 3014 GS Rotterdam The Netherlands Contact person Mr. Jeroen van der Laan [email protected] Tel: +31 6 1036 1310 Date Rotterdam, 18 July 2018 Disclaimer The information and views set out in this report are those of the authors and do not necessarily reflect the official opinion of the Commission. The Commission does not guarantee the accuracy of the data included in this study. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which may be made of the information contained therein. Rotterdam, 18 July 2018 Client: European Commission – DG ENER D.4 Service request under framework contract ENER/A4/516/2014 Supporting Analysis for an Impact Assessment on the Future Funding of EU Participation in ITER Project and Broader Approach (BA) Activities under the next MFF Authors Koen Rademaekers (Trinomics) Rob Williams (Trinomics) Niclas Gottmann (Trinomics) Jennifer Dicks (Cambridge Econometrics) Hector Pollitt (Cambridge Econometrics) In association with: TEC5219EU Abstract English This report supports the Commission impact assessment on the future European contribution to ITER. A variety of potential delivery mechanisms, legal setups and budget scenarios of the European contribution to ITER (including the current approach) are assessed according to their effect on a number of indicators. The knowledge base for the analysis consists of a wide-ranging literature review, in-depth interviews with stakeholders, and econometric modelling via the E3ME model. The key output of this report are two tables that summarise the impact that changes to the baseline approach are likely to have on the operational, economic, and political reality of European involvement in ITER. Français Ce rapport soutient l'analyse d'impact de la Commission sur la future contribution européenne à ITER. Une variété de mécanismes de mise en œuvre potentiels, d’organisations juridiques et de scénarios budgétaires de la contribution Européenne à ITER (y compris l'approche actuelle) sont évalués en fonction de leur effet sur un certain nombre d'indicateurs. La base de connaissances pour l'analyse consiste en un examen approfondi de la littérature, des entretiens approfondis avec les parties prenantes et une modélisation économétrique sophistiquée via E3ME. Les principaux résultats de ce rapport sont deux tableaux qui résument l'impact que les changements apportés à l'approche de référence sont susceptibles d'avoir sur la réalité opérationnelle, économique et politique de la participation Européenne à ITER. TEC5219EU ABBREVIATION LIST 30R 30% Reduction (scenario examined abbreviation) ASICS Application Specific Integrated Circuits ATM Air Traffic Management BA Broader Approach BOT Build-Operate-Transfer CA Commitment Appropriations CE European Conformity CeBr Cerium Bromide CEF Connecting Europe Facility CERN European Organisation for Nuclear Research CoA Court of Auditors DA Domestic Agencies DBO Design-Build-Operate DEMO DEMOnstration nuclear fusion power station DG Directorate-General DG BUDG European Commission Directorate-General for Budget DG ENER European Commission Directorate-General for Energy DG RTD European Commission Directorate-General for Research and Innovation DG TREN European Commission Directorate-General for Transport and Energy DM Delivery Mechanism EA Executive Agency E3ME Energy-Environment-Economy Global Macro-Economic Model EC European Commission EFDA European Fusion Development Agreement ERA European Research Area ERIC European Research Infrastructure Consortium ESA European Space Agency ETP4HPC European Technology Platform for High-Performance Computing EU European Union EUR Euros EURATOM European Atomic Energy Community EUX European Union Exit (scenario examined abbreviation) F4E Fusion for Energy (www.fusionforenergy.europa.eu) FNB Full New Baseline (scenario examined abbreviation) FP Framework Programme FP6 6th Framework Programme FP7 7th Framework Programme GJU Galileo Joint Undertaking GNSS Global Navigation Satellite Systems GRT An F4E coding for Grant funding GSA European GNSS Agency GVA Gross Value Added HPC JU High-Performance Computing Joint Undertaking IP Intellectual Property TEC5219EU IPR Intellectual Property Rights ITER International Thermonuclear Experimental Reactor (www.iter.org) ITER IO The ITER Organisation IUA ITER Unit of Account IVVS In-Vessel Viewing System JET Joint European Torus JRC The Joint Research Centre (of the European Union) JU Joint Undertaking KIT Karlsruhe Institute for Technology KPI Key Performance Indicator LF Legal Form MFF Multiannual Financial Framework NACE The statistical classification of economic activities in the European Union NoC New Baseline, No Contingency (scenario examined abbreviation) OPE An F4E coding for Operational expenditures PA Payment Appropriations PET Positron Emission Tomography PBR Post-Brexit Reference (scenario examined abbreviation) PF Poloidal Field PPP Public-Private Partnership QA Quality Assurance R&D Research and Development SESAR JU Singe European Sky ATM Research Joint Undertaking SME Small and Medium Enterprises SWOT Strengths Weaknesses Opportunities Threats TF Toroidal Field TFEU Treaty on the Functioning of the European Union VfM Value for Money WBS Work Breakdown Structure TEC5219EU Supporting Analysis for an Impact Assessment on the Future Funding of EU Participation in ITER Project and Broader Approach (BA) Activities under the next MFF CONTENTS Executive Summary ................................................................................... 1 Résumé .................................................................................................. 6 1 Introduction: Political and Legal context....................................................13 Scope and context: Nuclear Fusion and ITER .............................................. 13 The history of ITER and the lessons learnt ................................................. 14 2 Objectives .........................................................................................17 Challenges for the programme during the next MFF .................................... 17 Objectives of the programme during the next MFF ...................................... 17 3 Programme structure and priorities ..........................................................19 Prioritised actions to achieve the objectives .............................................. 19 Critical mass (of spending) to effectively achieve the objectives .................... 20 Necessity of EU action / legal basis .......................................................... 21 EU added value and Proportionality ......................................................... 21 4 Delivery Mechanisms and legal forms ........................................................25 Introduction ....................................................................................... 25 Presentation of delivery mechanism options .............................................. 28 4.2.1 Business as usual – dedicated programme in the MFF ............................................. 28 4.2.2 In a wider program within the MFF ................................................................... 31 4.2.3 Pooled contributions of individual MS ............................................................... 33 Legal forms of delivery mechanisms ........................................................ 34 4.3.1 Public-private partnership (PPP) ..................................................................... 34 4.3.2 EU Agencies.............................................................................................. 38 4.3.3 Intergovernmental organisation (IGO) ............................................................... 40 4.3.4 Private company ........................................................................................ 42 4.3.5 European Research Infrastructure Consortium (ERIC) ............................................. 42 4.3.6 F4E JU – Current status ................................................................................ 43 Analysis of the pros and cons of each delivery mechanism and legal option ...... 44 5 Assessment of the Impacts of the Scenarios, Delivery Mechanisms and Legal Forms .. ......................................................................................................47 Introduction ....................................................................................... 47 5.1.1 Quantitative scenarios ................................................................................. 48 5.1.2 Indicators ................................................................................................ 49 5.1.3 Methodology ............................................................................................. 50 Assessment of impacts: Scenarios and Delivery mechanisms .......................... 51 5.2.1 Jobs ......................................................................................................
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