Aeronautics/Horizon Europe webex, 06/05/2020, 15:00 Objectives Obtain                support for truly innovative and transformative research paths that will accelerate the decarbonisation of aviation. Underline that European aviation cannot achieve the ambitious targets without transformational and disruptive research and innovation. Reassure                  that the Commission stands behind the European aviation ecosystem. In the short-term, the Commission is acting decisively in many areas that have direct impact on air-transport (i.e. Public health, travel & transport, research, economy, crisis management, digital, fighting misinformation and the Coronavirus Global Response), while in the medium/long term, the Commission is determined to deliver on the European Green Deal and climate neutrality by 2050. Line to take The Commission    welcomes the strong commitment of the aviation sector to the Green Deal and the ambitious objective of full decarbonisation by 2050; appreciates the vital strategic importance of aviation in the EU economy and its impressive track-record of achievement in the face of tough international competition; recognises that the present crisis presents major challenges for the industry in the EU and globally.;    underlines the importance for the recovery strategy of remaining faithful to key political objectives in the EU, in particular the Green Deal and the digital agenda; Welcomes the work of industry partners in preparing Strategic Research and Innovation Agenda for the proposed Clean Aviation partnership under Horizon Europe;    is grateful to industry partners for recent efforts to focus the SRIA on a limited number of disruptive research paths which have the greatest potential to lead the necessary transformation in the sector. Recalls that financial resources are limited within Horizon Europe and EU funding will have to target disruptive high-risk (technologically and financially) R&I activities.    Recognises that other more incremental research and innovation will be needed to achieve full decarbonisation, but expects these aspects to be supported by industry and national R&I programmes. Further alignment and complementarities should be sought and exploited with the proposed air-traffic management partnership (continuation of SESAR). Meeting with the chairman of the Clean Aviation partnership preparatory group          2/7

Aeronautics/Horizon Europe webex, 06/05/2020, 15:00 Defensive points Commission                is       too         focussed             on        disruptive technologies, whereas other areas of research will have bigger impact on emissions reductions and do more to preserve the competitive position of the industry in the present crisis? The Commission acknowledges the need for a comprehensive research and innovation framework to achieve the objectives of the Green Deal. However, given the budget constraints, EU funding can have most impact in supporting the most ambitious disruptive technologies (eg full electrification, new sustainable aviation fuels). Other research programmes (industry, MS) should address more incremental technological improvements. R&I programmes not the right instrument to support the industry in the face of the present crisis and global competitive pressures. Budget for the Clean Aviation partnership? Impossible to anticipate the budget for the future partnership until we have decisions on the overall financial settlement in the MFF and the allocation to Horizon Europe. But already clear that the level of ambition of many proposed            partnerships              (including          Clean         Aviation) significantly exceeds what can be realistically expected. This is why we need to be very selective in what we can include under the SRIA for EU support. Meeting with the chairman of the Clean Aviation partnership preparatory group          3/7

Aeronautics/Horizon Europe webex, 06/05/2020, 15:00 Could you share with us your                                        views on the complementarity of collaborative                                     research and development activities in a PPP? Horizon Europe has multiple objectives. The proposed EPCA should aim towards accelerating the development, integration and validation of climate-neutral aviation technologies for earliest possible deployment, with focused disruptive technological paths, in order to achieve the targets (given the budget limits & capping). This high-TRL development and integration is more efficient and effective within a PPP, where the private side can increase its commitments towards decarbonisation of the sector. However, collaborative and fundamental research will take place within the first and second pillars of Horizon Europe. This part of research is in general out-of-the-scope of the proposed EPCA, unless it is essential for the development, integration and validation activities of few selected demonstrators. We will ensure that the bulk of low-TRL aviation research has an adequate collaborative program in Cluster 5 of Horizon Europe. It will focus on fundamental aviation research and mature technologies for future development, validation and integration activities in line with the new Industrial Strategy for Europe. Education is also for us an important pillar of Horizon Europe. I know the excellent links you have with Aeronautics research establishments and academia. The European industry needs highly qualified people and this is a win-win for public and private. Meeting with the chairman of the Clean Aviation partnership preparatory group          4/7

Aeronautics/Horizon Europe webex, 06/05/2020, 15:00 Background Notes 1. Aviation emissions The impact of aviation to environment and climate is driven by long-term effects (several years to hundreds of years) from CO2 emissions and shorter-term ones (several hours, days, weeks or years) from non-CO2 emissions (mainly from water, NOx, SOx, soot, contrails and contrail cirrus). The CO2 effects are well understood and are proportional to the fuel used. The non-CO2 effects are still poorly understood and carry large uncertainties. The total impact of global aviation to Green House Gas (GHG) emissions in 2005 (the most recent complete and reliable available measurements) was estimated to represent 4.9% of total anthropogenic forcing, where 1.6% was attributed to CO2 and 3.3% was attributed to non-CO2 emissions. On the environment and energy efficiency, over 10 billion tonnes of CO2 were saved since 1990 through a combination of new technologies, operational efficiencies and infrastructural improvements, including airlines spending $1 trillion on over 12,200 new aircraft since 2009. 2. Aviation contribution to the European economy Aviation, climate and economy are all inherently global. Aviation’s global economic impact is more than €2.4 trillion per year, while the European one is more than €700 billion per year. It contributes to European prosperity, allows EU leaders to absorb external shocks (e.g. financial crisis, coronavirus) and invest in climate neutrality and social challenges. Beyond the economy and National security, aviation is also significantly contributing to the European social integration and Single Market. 3. Aviation research paths towards climate neutrality by 2050 Evolutionary and disruptive technological research, together with accelerated deployment of sustainable aviation fuels (biofuels and efuels) and operational optimisations (mostly related to air-traffic management) are the key directions for the next aviation research in Horizon Europe. The proposed Clean Aviation partnership should aim towards accelerating the development, integration and validation of climate-neutral aviation technologies (high TRL) for earliest possible deployment. The proposed collaborative aviation research in Cluster 5 of Horizon Europe should focus on fundamental aviation research and mature technologies for future development, validation and integration activities for the 2040 horizon. Activities will include long-term climate-neutrality technologies, local air-quality, noise, digital transformation, integrated design and manufacturing, mobility, air-transport system, emerging threats (e.g. cyber, spread of communicable diseases), operational safety and new business model, exploiting synergies from space and defence. 4. Aviation research is an important element but not the only one For airlines to invest in cleaner and more efficient aircrafts, four elements should be timely aligned: healthy air-traffic demand (high regional and/or global growth, limited geopolitical instabilities), high airlines profitability (over a number of years), low interest rates and high fuel prices. At times of high uncertainty (i.e. coronavirus, trade wars, increased geopolitical instabilities) and very low oil prices, these four parts of the Meeting with the chairman of the Clean Aviation partnership preparatory group               5/7

Aeronautics/Horizon Europe webex, 06/05/2020, 15:00 “invest-in-more-efficient-aircrafts” equation do not add up. As a consequence, aircraft makers do not easily decide to invest €20-40 billion for a new aircraft. For example, the recent (March 2020) drop in oil-prices exposed airlines to billions of euro of fuel hedging losses. These hundreds of billions of euro that account as losses for airlines due to coronavirus and subsequent fuel hedging losses, will have a direct impact to ongoing as well as future orders and decisions. This makes the investment in aviation R&I even more urgent and more financial demanding. In addition to market uncertainties, technological breakthroughs are not planned. Nobody knows if next year or next decades will have a revolutionary energy storage technology that will allow us to store GWh of renewable energy that today is wasted. That’s why adequate public funding is absolutely necessary for aviation research, in order to derisk and mature promising technologies towards accelerating their entry into service. 5. Summary outcomes of the meeting between DG Jean-Eric Paquet and Airbus on 24/04/2020. Jean Eric Paquet (JEP) presented the political and R&I policy landscape, giving emphasis to:    Short-term post-covid challenges do not alter the European Green Deal and climate neutrality by 2050 objectives.    The European strategic R&I agenda (SRIA) needs to be further focused (no discounts) and designate a few disruptive research paths, since targets cannot be achieved with evolutionary paths.    European aviation R&I funding may exploit synergies with Member States, through different mechanisms. The EC Services will explore all possibilities.    Financial resources are limited within Horizon Europe – EU funding will target disruptive high-risk (technologically and financially) R&I activities.    Decisions cannot be taken today – pending MFF and Recovery toolbox. (Airbus,                 presented the industrial and operational aviation landscape and gave emphasis to:    Aviation is strategic for Europe and in the short-term it needs to restart in a safe manner, signalling the gradual slow-down of COVID-19.    Aviation globally is in “survival mode” with severe cash flow from most stakeholders, as a result of the collapse of air-traffic due to lockdown.    Europe’s aviation agenda remains the same in the long-term, focused towards climate neutrality by 2050, despite the competition from China & US.    Airbus is committed to this roadmap (all senior executives agree that the next aircraft will be a green one), despite the low priority given to climate neutrality from the competitors (particularly the US).    Airbus together with its suppliers are working tirelessly to identify these technological paths that will lead to this – research is necessary.    Sustainable Aviation Fuels, and in particular Hydrogen, will need disruptive R&I. Complementary disruptive technological developments are needed to counterbalance weight penalties due to introduction of new clean fuels. JEP and         have agreed that:    European aviation aims to contribute aggressively towards climate-neutrality by 2050, even if there are obstacles at International level (ICAO).    Clean Aviation partnership should make a real difference – fragmented and evolutionary development “Clean Sky 2.1” is not an option. Meeting with the chairman of the Clean Aviation partnership preparatory group             6/7

Aeronautics/Horizon Europe webex, 06/05/2020, 15:00    all stakeholders (including engine manufactures) should align to the European political objectives, understanding that there are diverging priorities even within leading aviation MS (e.g France). 6. COVID-19 economic impact and aviation crisis The direct financial impact to the industry is estimated around a quarter of a trillion euro, while the International Civil Aviation Organisation (executive agency of the United Nations) and industry are revising their outlooks, according to new global scenarios in post COVID-19 times. At this moment in time, it is not only about the two European political priorities (climate-neutrality by 2050 and digital transformation in-line with the Green Deal and the new European industrial policy) but also about maintaining the European aviation research base, which took four decades to integrate. Contact(s): (HoU, RTD.    ), tel.: (Deputy HoU, RTD.      ), tel.: (Policy Officer, RTD.     ), tel.: (                                  DG RTD. ) tel.: Meeting with the chairman of the Clean Aviation partnership preparatory group            7/7