This Deliverable is a detailed explanation of the edition 3 of the System Dynamics Model (SDM). The introduction highlights the major improvements from previous editions, and the corrections included after the review by the Commission. Chapter 2 explains the model, starting with the main feedback loops, then signalling main improvements from previous editions. Special mention is the effort in the different mechanisms to introduce data, explained in 2.2.3. Finally, a description of the eight modules that make up the model is written in 2.3. Next steps are explained in chapter 3, including work with pilots (customization and final calibration); scenario building; and relation with WP3. Some reflections about the work done and the challenges ahead can be found in the conclusions (3.2).