Get ready for FP 7 European Commission DG

Get ready for FP 7 European Commission DG Research ‘New and Renewable Energy Sources’ Rolf Öström Tallin, 27 th February 2007 Not legally binding 1

Overview 1. General Introduction to FP 7 2. FP 7 Rules for Participation, Grant Agreement, reporting, evaluation and submission Tallin, 27 th February 2007 Not legally binding 2

EU RTD Funding Tallin, 27 th February 2007 Not legally binding 3

FP 7 Budget Total 7 yr = € 50. 5 bn Annual Mean = € 7. 2 bn ramping Summary: • 41% real increase mean annual budget from FP 6 • Budget will ramp up gradually from FP 6 levels Tallin, 27 th February 2007 Not legally binding 4

FP 7 Structure (2007 – 2013, € 50. 5 bn) (Fusion, fission & JRC nuclear activities covered in separate Euratom treaty € 2. 7 bn) Tallin, 27 th February 2007 Not legally binding 5

Ideas specific programme – Frontier research o o o Setting up the European Research Council, ERC n Autonomous (independent of political interest) n Independent scientific governance (Scientific Council) Support to individual teams, to promote excellence through Europe-wide competition Two kinds of grant: n Advanced Investigator Grant n Starting Independent Researcher Grant 100 to 400 k€ per year for up to 5 years Dedicated implementation structure (External Executive Agency) Tallin, 27 th February 2007 Not legally binding 6

Capacities specific programme – Research Capacity ● Research infrastructures ● Research for the benefit of SMEs ● Regions of Knowledge ● Research Potential of Convergence regions ● Science in Society ● Activities of International Cooperation ● Coherent development of policies Tallin, 27 th February 2007 Not legally binding 7

People specific programme – Marie Curie Actions o o o Continuity from previous Framework programme Initial training of researchers n Marie Curie Networks (Open to third-country nationals) Life-long training and career development n Individual Fellowships, Co-financing of regional/national/international programmes Industry-academia pathways and partnerships n Industry-Academia Knowledge–sharing Scheme International dimension n Outgoing & Incoming International Fellowships, International Cooperation Scheme, Reintegration grants, Support to researcher ‘diasporas’ Specific actions n Mobility and career enhancement actions, Excellence awards Tallin, 27 th February 2007 Not legally binding 8

Cooperation (€ 32. 4 bn) Tallin, 27 th February 2007 Not legally binding 9

Energy RTD Spending (FP 1 to FP 6) Tallin, 27 th February 2007 Not legally binding 10

Energy Theme (€ 2. 3 bn) Hydrogen and fuel cells CO 2 capture and storage technologies for zero emission power generation Renewable electricity generation Clean coal technologies Renewable fuel production Smart energy networks Renewables for heating and cooling Energy savings and energy efficiency Knowledge for energy policy making Tallin, 27 th February 2007 Not legally binding 11

FP 7 Rules for Participation Regulation (EC) 1906/2006 of 18 December 2006, OJ L 391, 30. 12. 2006, p. 1 Tallin, 27 th February 2007 Not legally binding 12

New terminology • • • “Contract” becomes “Grant Agreement” “Contractor” becomes “Beneficiary” “Instruments” become “Funding Schemes” “Audit certificate” becomes “Certification on Financial Statement” “Proposers” become “Applicants” Tallin, 27 th February 2007 Not legally binding 13

Important definitions • Public body means any legal entity established as such by national law, and international organisations • Research organisation means a legal entity established as a non profit organisation which carries out research or technological development as one of its main objectives • Higher and secondary education establishments = Term used by Financial Regulation / Implementing Rules, includes universities, schools for applied sciences and similar • SMEs mean micro, small and medium-sized enterprises within the meaning of Recommendation 2003/361/EC in the version of 6 May 2003 (OJ L 124, 20. 5. 2003, p. 36) • International cooperation partner countries (ICPC) = FP 6 INCO countries – three categories according to income per capita and will be identified as such in the work programmes Tallin, 27 th February 2007 Not legally binding 14

Minimum conditions for participation General: • 3 independent legal entities from 3 different Member States (MS) or Associated countries (AC) – no two of which established in the same MS or AC • Natural persons may participate • JRC may participate and is deemed to be from a different MS or AC • Additional conditions can be established by the work programme (WP) or specific programme (SP) (e. g. number or type of participant, place of establishment) Tallin, 27 th February 2007 Not legally binding 15

Minimum conditions for participation Specific: • Coordination and support actions– minimum of 1 legal entity (except actions to coordinate, min 3 legal entities) • Participation of international organisations and participants from third countries possible if in addition to minima Tallin, 27 th February 2007 Not legally binding 16

Community financial contribution Eligibility for Funding: Legal entities from MS and AC or created under Community law (and JRC) International European interest organisations Legal entities established in international cooperation partner countries (ICPC) • • • and • International organisations, third countries other than ICPC, if provided for in SP or WP; or essential for carrying out action; or provision for funding is provided for in a bilateral agreement between Community and the third country Tallin, 27 th February 2007 Not legally binding 17

General principles Forms of grants Principle of co-financing and no profit • • Energy 2007 call: Reimbursement of eligible costs as the preferred method, particularly at the beginning of FP 7 (including the different options for flat rates on indirect costs) Other financing schemes: Flat rates financing, including scale of unit costs; Lump sum amounts, in particular as option for participants from ICPC and, depending on the work programme, and for No. Es Tallin, 27 th February 2007 Not legally binding 18

Maximum funding rates • Research and technological development activities: up to 50% of eligible costs except for: • Public bodies, Secondary and higher education establishments, Research organisations (non-profit), SMEs : up to 75% • Demonstration activities: up to 50% • Coordination and support actions: up to 100% • Other activities: up to 100% including e. g. management, training, dissemination (No 7% limit for management) Tallin, 27 th February 2007 Not legally binding 19

Funding schemes – Energy Theme • Collaborative projects (CP) • • Small or medium scale focused projects (up to 4 M€) Large scale integrating projects (more than 4 M€) N. B. Requested budget is an eligibility criteria Coordination and Support Actions (CSA) • • Coordination type (typically in the range of 1 -2 M€) Support type (up to 1 M€) Tallin, 27 th February 2007 Not legally binding 20

Funding scheme – Collaborative projects (CP) • Purpose: developing new knowledge, new technology, products, including scientific coordination and/or demonstration activities or common resources for research • Size & Resources: the number of participants and volume of resources should be compatible with overall objective and manageability • Indicative average Duration: 24 -60 months • Activities: Research, Demonstration, Management of the consortium, Other activities such as dissemination, training Tallin, 27 th February 2007 Not legally binding 21

Basic principles of FP 7 Grant Agreement Tallin, 27 th February 2007 Not legally binding 22

Similarities with FP 6 contract (1) • • Structure: • Core part: GA parameters, • Annex I: Do. W, • Annex II: General Conditions, • Annex III: Specific provisions for funding schemes • Annex IV, V & VI: Form A, B & C • Annex VII: Form D: terms of reference for the certificate of costs and Form E: certificate on the methodology for indirect costs (NEW) Consortium Agreement mandatory (except if excluded by Call) Tallin, 27 th February 2007 Not legally binding 23

Similarities with FP 6 contract (2) • Signature by coordinator & Commission • Accession of beneficiaries via “Form A” • Later accession of beneficiaries via “Form B” • Entry into force upon signature by coordinator & Commission Tallin, 27 th February 2007 Not legally binding 24

FP 6 contract-FP 7 Grant Agreement differences & improvements • Financial provisions 1. Payment modalities 2. Eligible costs 3. Indirect costs 4. Certificates (Terms of Reference – Annex VII) 5. Third parties 6. Maximum reimbursement 7. Risk avoidance mechanism • Other provisions § Reporting § Amendments Tallin, 27 th February 2007 Not legally binding 25

1. Payment modalities • Only one pre-financing (upon entry into force) for the whole duration – up to 150% of the average funding period (for projects with more than 2 periods) – to be agreed during negotiations • Interim payments based on financial statements (EC contribution = amounts justified & accepted * funding rate) • Retention (at least 10%) • Final payment Tallin, 27 th February 2007 Not legally binding 26

2. Eligible Costs (1) • Eligible • actual* • during duration of project • in accordance with the particular beneficiary’s usual accounting and management principles • recorded in the accounts of beneficiary • used for the sole purpose of achieving the objectives of the project (in FP 6: “necessary for the project”) • Non-eligible (identifiable indirect taxes including VAT…) Tallin, 27 th February 2007 Not legally binding 27

2. Eligible Costs (2) *Average personnel costs accepted if : • Consistent with the management principles and accounting practices & • they do not significantly differ from actual personnel costs = if identified according to a methodology approved by the Commission (NEW Form E) Tallin, 27 th February 2007 Not legally binding 28

3. Indirect Cost : • • The participant shall use the same method for all grant agreements under FP 7 For all: § actual overhead § simplified method at the level of the legal entity of the beneficiary (certification of methodology) § flat rate of 20% of direct costs minus subcontracting and 3 rd parties not used on the premises of the beneficiary For Non profit Public Bodies, Secondary and Higher Education establishments, Research Organisations and SMEs unable to identify real indirect costs, may apply for a flat rate of 60% (for calls 2007 -2009, not lower than 40% for calls 2010 -2013) For CSA: limit of 7% of direct costs Tallin, 27 th February 2007 Not legally binding 29

4. Certification (1) Certificate on financial statements (Form D) • Mandatory when requested funding reaches 375, 000 Euro (except for project of 2 years or less - submitted at the end) • If above threshold, mandatory for every beneficiary and every period, except if a certification on the methodology is provided Tallin, 27 th February 2007 Not legally binding 30

4. Certification (2) Certificate on the methodology (NEW Form E) • • • Aims at certifying the methodology of calculating (average) personnel costs and overhead rates Valid throughout FP 7, must be accepted by EC Particularly aimed at legal entities with multiple participation Waives the obligation of certificates on financial statements for interim payments Simplified certificate for final payments Tallin, 27 th February 2007 Not legally binding 31

5. Third parties carrying part of the work • Subcontracts: tasks have to be indicated in Annex I • awarded according to best value for money • External support services may be used for assistance in minor tasks (not to be indicated in Annex I) Third parties making available resources • “Third parties”: to be indicated in Annex I, • Costs may be claimed by the beneficiary • Resources “free of charge” may be considered as receipts Tallin, 27 th February 2007 Not legally binding 32

Funding Schemes (for calls for proposals) FP 7 in general Cooperation: Energy: 2007 Small-medium: < 4 M€ Collaborative Projects Large: > 4 M€ Coordination & Support Actions Coordination: 1 -2 M€ Support: < 1 M€ Networks of Excellence Frontier Research (Ideas) Support for Training & Career Development (Marie Curie) Research for Specific Groups (e. g. SMEs) Tallin, 27 th February 2007 Not legally binding 33

6. Maximum Reimbursement Rates Summary of Rules for Participation (Article 33) : Non-profit public bodies, higher education establishments, research organisations and SMEs. RTD activities Demonstratio n activities Coordination & Support Actions Management, audit certificates Tallin, 27 th February 2007 All other organisation s 75% 50% 50% 100% Not legally binding 34

7. Risk Avoidance Mechanism Guarantee Fund In order to manage the risk associated with non-recovery of the sums due to the Community, the Commission will establish and manage a participant guarantee fund (“the fund”). o o Participant Contribution, not Greater than 5%, is Retained. Completion of the project/action the money is Returned to the participants. – [but it depends on the performance of other projects in which the participant is involved]. In the situation where the Commission is owed money. 1. The interest generated from the Guarantee fund is used. 2. If the interest is not sufficient to cover the money owned to the Community 1% will be retained from Participants not guaranteed by the state i. e. everyone except public bodies. Tallin, 27 th February 2007 Not legally binding 35

Reporting (1) • Periodic reports to be submitted by coordinator 60 days after end of period: § § § progress of the work, including publishable summary use of the resources and Financial Statement (Form C – Annex VI) • Final reports to be submitted by coordinator 60 days after end of project: § § § publishable summary report, conclusions and socioeconomic impact of the project report covering wider societal implications (gender, ethics) and a plan on use and dissemination of results distribution of EC contribution – 30 days after reception of final payment Tallin, 27 th February 2007 Not legally binding 36

Reporting (2) • Commission has 105 days to evaluate and execute the corresponding payment • • • No tacit approval of reports EC will automatically pay interest on late payment After reception Commission may: • • Approve Suspend the time-limit requesting revision/completion Reject them giving justification, possible termination Suspend the payment Tallin, 27 th February 2007 Not legally binding 37

Amendments • Coordinator requests amendments on behalf of the consortium • Coordinator can accept an amendment proposed by the Commission • For addition/withdrawal: tacit approval after 45 days Tallin, 27 th February 2007 Not legally binding 38

FP 7 submission and evaluation procedures what’s new? Tallin, 27 th February 2007 Not legally binding 39

Evaluation in FP 7 … the evaluation process has developed to a very high standard. It compares well with … other prestigious national or international granting agencies Report of Independent Observers, Dec. 2005 • No major change for FP 7 • But improved and streamlined, based on experience • Adapted to the new features of FP 7 where necessary Tallin, 27 th February 2007 Not legally binding 40

What’s new ? Eligibility checks • • • As always: deadline, completeness, minimum participation Now includes “out of scope” (the proposal relates to the topic and funding scheme, including any special conditions) Budget limit: collaborative projects – small or medium focused projects shall have a maximum requested EC contribution of 4 M€ Evaluation basis: peer-review carried out by independent experts • Experts selection: Expertise, geography, gender and “rotation” • Conflicts of interest: Disqualifying and ‘potential’ conflicts spelled out in expert appointment letter Tallin, 27 th February 2007 Not legally binding 41

Evaluation criteria • • Criteria adapted to each funding scheme • indicated in the work programme and in the Guide for applicants (CORDIS) Divided into three main criteria: • S&T Quality (including relevance to the topic of the call – when partially relevant) • Concept, objective, work-plan • Implementation (operational capacity of participants) • Individual participants and consortium as a whole • Management structure of the project • Allocation, justification of resources (budget, staff, equipment) • Impact • Contribution to expected impacts listed in work programme • Plans for dissemination/exploitation Tallin, 27 th February 2007 Not legally binding 42

Scoring & ‘Redress’ • Criteria scored out of 5 => total = 15 • • Individual threshold = 3 Overall threshold = 10 Half marks possible ‘Redress’ procedure foreseen • • • An obligation on the Commission - Details of operation still to be determined Aim is to address complaints in a systematic manner – after the “initial information letter” Looks at procedure and factual questions • Not an internal evaluation of the proposal • Not calling into question the scientific assessment of the experts Tallin, 27 th February 2007 Not legally binding 43

Submission tools • EPSS will be fully operational mid-March § § Start of FP 7 looks like end of FP 6 (EPSS = Electronic Proposal Submission Service) CORDIS Part A entered through a set of on-line forms + Part B uploaded by the applicant into EPSS (template available) coordinator press ‘SUBMIT’ button No offline & No paper (proposals arriving by any other means are regarded as ‘not submitted’ and will not be evaluated) § Tallin, 27 th February 2007 Not legally binding 44

Evaluation procedure • Evaluation shall follow a single stage procedure • Individual Evaluation of the proposals may be carried out remotely • Proposals will not be evaluated anonymously • At the Panel stage, proposals with equal overall scores will be prioritised according to the S&T Quality criterion, then Impact and Implementation criterion, finally WP coverage • Evaluation expected to be carried out May – July 2007 and contract negotiations open by September 2007 Tallin, 27 th February 2007 Not legally binding 45

Thank you for your attention Tallin, 27 th February 2007 Not legally binding 46