towards a resource-efficient economy – from policy to...

10th European Forum on Eco-Innovation

Towards a Resource-Efficient Economy– from Policy to Action

European Commission

Resource Efficiency

Eco-InnovationGreen

Economy

Green Procurement

Tuesday 22nd and Wednesday 23rd March 2011Birmingham, UK

Summary of the event

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10th European Forum on Eco-InnovationTowards a Resource-Efficient Economy– from Policy to Action

Prioritising eco-innovation in a resource-efficient economy

Europe’s Innovation Union policy recognises the need to enhance economic growth while reducing dependency on resources which are being used unsustainably. It is essential to support environmental innovation, paving the way for sustainable solutions and new business models. The EU has taken a positive approach to materials security and sustainable materials management with the focus of EU eco-innovation shifting towards a dematerialisation of the economy.

The EU is now seeking to establish an economy which uses finite and renewable resources efficiently and responsibly, recycles strategically important materials and develops alternatives to the consumption of scarce resources or materials which cause high environmental impacts during extraction, use and disposal.

The 10th European Forum on Eco-Innovation in Birmingham, England therefore brought together key players in business, academia, finance, policy and green groups to debate the role of eco-innovation and eco-innovative business in driving a resource-efficient European economy. Some 240 stakeholders participated in the event – a joint initiative of the UK Department for Environment, Food and Rural Affairs (Defra) and the European Commission.

Key issues for discussion included:

• the market and legal frameworks necessary to support a resource-efficient economy;

• eco-innovations that address material security – such as substitution, minimisation of material use and closing loops – and reduce environmental impacts;

• case studies and practical experiences from companies that have recognised the commercial opportunity presented by resource efficiency; and

• the role of green procurement in the public and private sector to promote resource efficiency.

Session One: Towards a resource-efficient economy: the crucial role of innovationThe importance of resource efficiency and the challenges and opportunities for business and society at UK and European level.

Session Two: The business responseStrategic approaches adopted in the private sector by major international corporations.

Session Three: Is Eco-Innovation enough?Resource efficiency and the role of (eco)-innovation in mitigating material security risks at European level and in addressing the main issues surrounding resource efficiency.

Session Four: Stimulating demand for resource-efficient products and servicesDemand drivers and initiatives which contribute to achieving innovative and effective public and private green procurement.

Session Five: Methods to influence customer behaviour

Agenda

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10th European Forum on Eco-InnovationTowards a Resource-Efficient Economy

– from Policy to Action

Prioritising eco-innovation in a resource-efficient economy

Speakers and panellistsFeatured guest speakers and panellists included:

Janez Potočnik

European Commissioner for the Environment

Lord Henley

Parliamentary Under-Secretary of State,

UK Department for Environment, Food and Rural Affairs (Defra)

Andrew Bloodworth

Head of Science – Minerals and Waste, British Geological Survey

Hester de Boer

Programme for Sustainable Public Procurement,

Dutch Ministry of Infrastructure and the Environment

Stephan Csoma

Senior Vice President Government Affairs, Umicore

Lee Davies

Social researcher, Defra Centre of Expertise in Influencing Behaviour

Bryan Forbes

Technology Strategy Board, Small Business Research Initiative

Juan Gonzalez-Valero

World Business Council for Sustainable Development,

Head Public Policy and Partnerships, Syngenta International

Oliver Greenfield

Convenor, Green Economy Coalition

Richard Jackson

Principal Sustainable Development and Regeneration Manager,

Olympic Delivery Authority

Professor Julia King

Vice-Chancellor, Aston University

Frances Leedham

Head of Environment and Sustainability, Jaguar Land Rover

Jacqueline McGlade

Executive Director, European Environment Agency

Timo Makela

Director for International Affairs, Life and eco-innovation,

Environment DG, European Commission

Hugues-Arnaud Mayer

Member of the Board and the Executive Council, MEDEF

Michal Miedzinski

Senior Consultant, Technopolis Group/Coordinator,

Eco-Innovation Observatory

Ferenc Pekár

Policy officer, Environment and Industry, Environment DG,

European Commission

Paul Tilsley

Deputy Leader, Birmingham City Council

Frans Verspeek

Team Leader SWITCH Asia Network Facility, UNEP/Wuppertal

Institute Collaborating Centre on Sustainable Consumption

and Production

Caroline Wadsworth

Beta Technology

Michael Warhurst

Waste and Resources Campaigner, Friends of the Earth

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Threat and opportunity

Some 75% of businesses are seeing pressure on resource prices. More than 40% of SMEs have achieved change through the use of eco-innovation. Resource efficiency is a central element of the Europe 2020 strategy. It requires decoupling of consumption from growth and it necessitates more than incremental change.

The Europe 2020 strategy outlined the need for sustainable growth. The January 2011 flagship initiative for resource efficiency offered a longer term vision with actions in many policy areas – from energy, transport and industry to biodiversity and regional development. This provides increased certainty for investment and innovation and ensures that all relevant policies factor in resource efficiency in a balanced manner.

Demand-side measures are equally important – consumers and their role are central. Resource efficiency and eco-innovation should provide inspiration and enable European businesses and citizens to reap the benefits.

Europe depends on natural resources; they are basis of the economy but are under threat. So the 21st century is the time to change and to stop overexploitation. But there is also good news. A recent study of 700 German companies shows that investment in resource efficiency results in an average return of € 200,000 per company. These savings were achieved with an investment of under € 10,000 in nearly half of the companies concerned1.

“We are consuming resources at twice the rate that the planet can support and so we need to change the way we think. Managing our resources is crucial. The UK Government is committed to a low carbon economy and this involves not just technology but also new business models and sharing solutions. At EU level, the European Commission and Member States must work together in a single market.

Lord HenleyParliamentary Under-Secretary of State,

UK Department for Environment, Food and Rural Affairs (Defra)

Working together in a single market

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1 Eco Observatory Annual report

“How do we put Europe on a resource-efficient growth path? What are the concrete actions needed to trans-late our vision of a resource-efficient Europe into reality? Addressing the overconsumption of natural resources will be a key challenge for the 21st century. Doing more with less has to become a way of life for us all.

Janez Potočnik European Commissioner for the Environment

Doing more with less

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Threat and opportunity Crucial role for innovation

The European Environment Agency has been working with the EU Member States for more than 35 years to achieve a better environment. The Agency’s annual report on the state and outlook for the European environment2 (SOER) provides a comprehensive body of assessments illustrating the complex systemic links between issues, including the impacts of global megatrends.

SOER offer both individual country and thematic assessments. EEA member and co-operating countries are assessed on six environmental themes: climate-change mitigation, land use, nature protection and biodiversity, waste, water and air pollution. A key outcome is a green economy in which policies and innovations enable society to generate more value each year while preserving the natural systems that sustain it.

Resource efficiency is essential for the long-term prosperity of Europe. Innovation has a crucial role to play in moving business to a resource-efficient economy. Such a change poses a series of challenges and opportunities for business and society at Member State and European level.

2 http://www.eea.europa.eu/soer

Doing more with less

Resource efficiency is not just for individuals in factories but involves the whole cradle-to-cradle system, including perverse effects versus benefits – for example better health means longer pensions.

Europe is heavily dependent on imports – two thirds of its materials come from outside. New solutions offer creative possibilities. Accelerating technological change needs to be combined with speeding up mass use of innovation. It is essential to get eco-innovation into daily thinking. Yet eco-innovation is difficult to track as the statistics are old fashioned. For example, electric bikes in China are classified under leisure not green transport!

“The future of eco-innovation lies in embedding it in people’s lives. But market prices have provided misleading signals for investments and innovation. It requires a fundamental change in the way we do business. Sharing knowledge is essential for the new economy.

Jacqueline McGladeExecutive Director, European Environment Agency

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Vision for a sustainable futureIn early 2010, the World Business Council for Sustainable Development (WBCSD) published its ‘Vision 2050’3. It imagined a world in 2050 with a nine billion population living within the limitations of the planet. And it found a pathway to achieve this that offered tremendous business opportunities.

The study plotted out the ‘must haves’ for a more sustainable future. These included more research, better use of water, freer/fairer trade and reduced waste in the food system, as well as sharing better faming practices, all elements needing innovation.

Solution-oriented innovation is the key and it is realistic in terms of applying high tech solutions. In fact, moving the lower end of agricultural production to the current average would already make an important difference. In terms of scenarios, large farms need to improve by 20% while smallholdings need to improve by 2.4 times.

“Overall economics drive science. Internalising environ-mental costs drives eco-innovation. Science is vital to extending resources and doing more with less. There are limits to growth but not physical exhaustion rather that the carrying capacity of our environment will restrict our ability to utilise resources.

Andrew BloodworthHead of Science – Minerals and Waste, British Geological Survey

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“We cannot achieve our vision of 2050 with a nine billion population living within the limitations of our planet by business as usual. Technological improvements are the route to a sustainable future and the challenges in agriculture create tremendous business opportunities but intrinsic change management is required.

Juan Gonzalez-ValeroWBCSD, Head Public Policy and Partnerships, Syngenta International AG

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Essential role for mineralsWhile the population continues to grow, concerns have been expressed about minerals as they are essential for quality of life and economic competitiveness. They are used in the production and preparation of food, for energy, for transportation and, increasingly, in electronic and tele-communications applications. Some 16 million tonnes of copper, 1.6 billion tonnes of iron ore and 6 billion tonnes of coal are produced globally every year.

Worries over the adequacy of natural resources dates back at least two centuries. Already in the 1860s there were wor-ries in the UK about coal, in the 1950s the US President’s Material Policy Commission was born and in the 1970s the Club of Rome was very pessimistic about oil. Yet the reality is that reserves are a poor indicator of long-term availability as science and price make ever more resources available.

So the concern is not so much about physical exhaustion but more about environmental impact. The question is rather is it possible to keep up with demand – there is therefore a real need to improve resource efficiency. There is also the question of environmental limits – for example, the global cement industry is responsible for 5% of manmade CO2 emissions, while a single zinc smelter uses 20% of the electric power in Namibia.

3 http://www.wbcsd.org/web/projects/BZrole/Vision2050-FullReport_Final.pdf

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Making the business case

Belgian multinational Umicore moved from mining to resource efficiency, with a focus on high value added materials and recycling. It is now setting standards and leveraging common platforms in clean technology, creating tailormade solutions in collaboration with customers. It believes in closing the loop and securing supply by recycling production scrap and end-of-life materials.

Closing the loop involves:• operating the world’s largest precious metals refining

installation in Belgium;• expanding operations to other end-of-life products

and related metals – such as recycling of rechargeable batteries and of photovoltaics’ production scrap; and

• efficient refining/recycling which turns by products and waste into valuable resources and offers a crucial contribution to a circular and sustainable economy.

Umicore’s vision is for a single, integrated sustainable development strategy with no trade-offs. It is fostering a resource-efficient society including advocacy – essential to enable a move to the next level and working across the whole value chain. Resource efficiency and recycling success depends on the effectiveness of each step in the value chain. Complex products require a well organised and dedicated recycling chain.

Its concept of the ‘urban mine’ – resource recovery from waste – offers a huge and rich source of precious metals that is growing continuously. Mobile phones for example are easy to recycle as it is only necessary to remove the battery. But only 3% are recycled. Scrapped mobile phones contain 350 g of gold per tonne, compare with only 5 g of gold per tonne of ore mined from up to 3,000 m underground. As a result, Umicore recycling saves 1 million tons of CO2 emission a year compared with primary mining of gold.

Many major corporations have started to adopt new strategic approaches to resource efficiency. Private and public sector organisations and European funded programmes recognise and support the commercial opportunities in resource efficiency.

Jaguar Land Rover (JLR) sees resource efficiency as one of the greatest challenges facing Europe and innovation is crucial. The carmaker aims to reduce its business environmental footprint by 25% by 2012 and cut its EU fleet CO2 emissions to 120 g/km by 2020. The company is investing £9 million in efficiency measures across its business, targeting areas where it can achieve most impact. And it is investing £800 million over five years in key CO2 reduction technologies for its vehicles.

JLR uses product lifecycle assessment – from where mined to disposal. And it has developed an aluminium strategy with the REAL – Recycled Aluminium Car – programme. The aim is to increase the recycled content of its 5000 series from 50% to 75%; saving 984 kg of CO2 per car. The UK sent some 40,500 tonnes of aluminium cans to land fill in 2009; the total consumption of aluminium in transport applications in the same year was 189,000 tonnes. JLR is working with Alupro to improve aluminium recycling.

“Urgent actions are required to realise the full potential of a closed-loop approach. These include increasing collection of end-of-life products, preventing illegal/ dubious exports of relevant end-of-life products, creating a level playing field internationally and fostering innovation along the entire value chain.

Stephan CsomaSenior Vice President Government Affairs, Umicore

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“The future for cars lies in innovation with new materials and new components, sustainable design and closed-loop manufacture. However new materials also require new methods of recycling.

Frances LeedhamHead of Environment and Sustainability, Jaguar Land Rover

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Top case studies

The Eco-Innovation Observatory5 was established in 2009. It examines the context in economic, environmental, social and political terms as well better use of resources. The eco-innovation challenges are to improve resource productivity, ensure eco-innovations and their benefits are widely diffused in the economy and society, and ensure improved productivity is not offset by growth in total consumption of natural resources.

Over 45% of companies in Europe in manufacturing, construction, agriculture, water and food services have introduced at least one eco-innovation in the past two years according to the Eurobarometer 2011 Attitudes of European entrepreneurs towards eco-innovation6 . However the extent of material and energy reductions differs from sector to sector, from country to country and by size of the company. There is also more focus on energy savings than on materials use.

An eco-innovation scoreboard has been developed with 13 indicators and 5 components: inputs, activities, outputs, environmental and socio-economic outcomes. This is only the first edition and the action will be repeated and improved. The leaders are the Nordic countries, followed by Germany, Austria and the older EU Member States, with the new Member States further behind. However, there is no one country which could serve as a model across all areas observed in the scoreboard.

EU eco-innovation performance

A series of case histories4 demonstrated practical experiences from companies that have recognised the important commercial opportunities presented by development of products and services that make better use of natural resources in a world with increasing international competition for resources of all kinds. They demonstrated sustainable materials management that encourages innovation through cross fertilisation between disciplines and sectors, and identified and prioritised key issues to be addressed.

• eco-innovation activity is widespread in EU com-panies;

• one in four European eco-innovators report significant material efficiency improvements

as a result of innovation;• eco-innovation can lead to a reduction in materials costs;• a majority of EU companies are not eco-inno-

vative or report only small material efficiency improvements as a result of innovation; and

• there is a high degree of diversity between EU countries and sectors in terms of eco-innovation performance.

Overall, key findings were:

4 http://ec.europa.eu/environment/ecoinnovation2011/1st_forum/pdf/case_studies_2011_10th_11_3_low.pdf5 http://www.eco-innovation.eu/6 http://ec.europa.eu/public_opinion/flash/fl_315_en.pdf

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Top case studies Eco-innovation not sufficient

A 50% cut in CO2 emissions is required by 2050 to keep the global temperature rise to around 2°C, yet the world population will continue to increase. Such a reduction would need an 80% cut in emissions in the UK from the current 670 MtCO2e to 159 MtCO2e. For the power sector this means emissions will have to decrease, whilst demand increases. In transport, reductions must come through cutting g/km, while the number of km is likely to increase. And in buildings, emissions reduction to 2030 will have to come from improved efficiency and a shift to low-carbon electricity.

All this offers tremendous commercial opportunities. For example, the global renewables market in power is forecast to grow from $203 billion to $544 billion in 2020, requiring new power plants, conversion of waste to energy, carbon capture and storage, and a smart grid. The automotive park is set to increase from the current 1 billion vehicles to perhaps 3 billion by 2050 with up to 20% of the 80 to 100 million vehicle market in 2020 expected to be electric, hybrid electric or other new technologies. Low carbon transport is set to be one of the fastest growing sectors: up from $113 million in 2009 to $677 billion in 2020.

Energy efficiency and renewable heat are forecast to grow similarly with eight million more cavity wall insulation installations, two million solid wall insulation installations and 14 million additional high efficiency boilers by 2020. There will be increasing use of renewable heat with heat pumps, biomass boilers, solar, etc. And there is tremendous potential in whole house packages, particularly for social housing.

Eco-innovation has a key role in mitigating material security risks in Europe and in addressing the main issues surrounding resource efficiency, opening up huge commercial opportunities. But it is not sufficient as it does not reflect the enormity of the problem. Action is needed on a global scale with planetary ecosystems, materials substitution, minimisation of materials use, closing loops and developing meaningful metrics acceptable to society as a whole.

Eco-innovation alone is not enough. Societal and economic resilience is more important. Interlinked planetary systems are required with eco-innovative ecosystems management and global common ownership of resources. Dematerialisation of the economy is also essential when success is measured in terms of big houses, big cars….

Good rules and research are needed for energy substitution. While minimising products is good, the technologies involved – such as nanotechnology – need explaining to citizens and checking before use. Alternative approaches are also to be encouraged – such as more home working to reduce transport needs.

The crisis with renewable resources cannot be overcome by eco-innovation alone. New primary materials are needed, requiring new ways of recycling. Eco-efficiency has also increased use of some resources – agriculture may now be a lot more productive but it consumes much more water.

There is a need for new metrics to enable society to make informed decisions. Yet, companies and governments do not necessarily share the same view; each has to take charge of its own metrics. Industry can provide data but what should be measured? There is also a need to understand materials flows. However there is not necessarily the time for debate but rather to look at boundaries and metrics as eco opportunities.

“The opportunities are huge but many solutions will be needed. And investment in collaborative solutions such as European electrical interconnects is essential but with investment at EU or national level? However the market will not drive solutions with long term sus-tainability: government interventions/policy is needed.

Professor Julia KingVice-Chancellor, Aston University

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Stimulating demand through procurement

The Small Business Research Initiative (SBRI) is a government procurement methodology for buying research. It supports public sector bodies in the UK in working with innovative companies on focused objectives. The procurement process involves open competitions with over 75% of contracts going to SMEs.

This pre-commercial process is fully compliant with EU rules and can fund 100% of research costs – the same process can be used anywhere in the EU. Intellectual property from the research remains with the companies involved but the public sector retains certain rights. Since April 2009 there have been 52 competitions with 1,800 companies applying and 540 contracts awarded for over €43.5 million engaging 25 public sector bodies.

Dutch experience shows that government can serve as a role model in resource efficiency through sustainable public procurement. This encourages greening of the market by leveraging the government’s procurement volume. The result is both stimulation of resource-efficient production and a lowering of prices for sustainable production while rewarding front runners and motivating innovation.

However, to be successful, all stakeholders need to be involved in the criteria-setting process with uniform criteria for all levels of government. An effective monitoring system is also essential. The success of the Dutch Government approach has encouraged the public sector to follow suite with 17 large companies expected to apply social and environmental criteria in their procurement policy within five years.

International co-operation is important. As procurement power is moving to Asia, the EU is stimulating the engagement of global supply chains for eco-innovation. This involves an alternative and competitive development path which encourages doing more with less to meet global challenges and support a shift to sustainable practices.

The EU SWITCH-Asia programme is advancing sustainable consumption and production in Asia. Total funding is €150 million from 2007 to 2013. Key aims are to: increase SME use of environmentally-friendly technologies and practices; encourage adoption of more environmentally friendly and socially fair ways of designing, producing, using and recycling of products and services; reinforce and implement legal environmental and safety instruments; and develop and apply relevant effective economic instruments.

Effective public and private green procurement has an important role in motivating demand for resource-efficient products and services. It needs stimulation at national and international level. Demand drivers include public funding for research, greater private sector involvement and transnational supply chains.

“Policy support is needed to create sufficient demand or market ‘pull’, prevent market ‘leakage’, ensure adequate supply chain organisation and communication with transparency within supply chains and to consumers, and to respond to market demand.

Frans VerspeekTeam Leader, SWITCH Asia Network Facility

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The EU retail business links manufacturing and consumers. It involves more than a billion transactions a day, 30 million jobs and one company in three the EU. The European Retail Forum for Sustainability7 is a voluntary initiative launched in 2009 to reduce the environmental footprint of the sector and its supply chain, promote more sustainable products and inform consumers better. It involves retailers, retail associations, the European Commission and other stakeholders such as NGOs and academia.

Such a process can be effective as it obtains improvement faster than regulation, ensures greening by competition and is useful in horizontal sustainability issues. However a voluntary approach cannot replace regulation and, in view of the ambitious objectives of the Retail Forum, its actions require monitoring and verification. This approach is already influencing what is sold and how it is sold.

Stimulating demand through procurement Influencing customer behaviour

Influencing consumer behaviour is not new but is important in the context of sustainable consumption. There is no single solution to delivering change however. It needs a package of interventions and is a long-term process. It is essential to take risks and to pilot new methods. Moreover, different approaches are effective for different population groups and have to overcome habitual behaviour while offering choice.

It is also necessary to define the different roles that government, business, civil society, individuals and communities must take both in direct action and to enable others to act. Choice editing – removing the worst offending products and methods – must increase and choice improved. It is also essential to address cross-cutting barriers and ensure target group are able to act.

It is necessary to determine what can motivate different groups – for example going beyond environmental concerns to saving money by avoiding waste, generating a feel-good factor and fitting in with people’s identities and life styles. This can be achieved by working with trusted intermediaries – third sector, business, communities – and reaching influencers and catalytic individuals in social networks.

Many consumers do make ‘green’ purchasing decisions, particularly once an issue is well understood and clearly labelled. However most purchasing decisions are based on habit and this can be disrupted by ‘shocks’ such as products disappearing, big price increases or major marketing campaigns for rival products.

Most consumers lack the time, and the information, to make informed decisions. This is not helped by often misleading ‘green’ claims for products and services. Citizens therefore need and expect to be helped through choice ‘editing’ and by government action.

The UK Olympic Delivery Authority takes sustainability seriously in preparations for the 2012 London Olympics. This involves massive urban regeneration and a lasting legacy for the capital with five new venues and millions of tonnes of soil cleaned up. There are 12 strategic objectives – half environmental and half socio-economic. Leadership is important as sustainability is embedded throughout the complete supply chain, including contractors and operators on site. Sustainability is also built into tender specifications. Environmental targets have been set in areas such as: energy use, including green energy, with results much better than the original target; water use reduction with extensive blackwater treatment; waste minimisation; and bio-diversity with 45 ha of new habitat.

A sustainability partnership approach

Resource efficiency is essential for the long-term prosperity of Europe. Innovation has a crucial role to play in moving business to a resource-efficient economy. Such a change poses a series of challenges and opportunities for business and society at Member State and European level.

7 http://ec.europa.eu/environment/industry/retail/index_en.htm

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Establishing consensusThe Birmingham event identified a series of key issues, including:• how to set clear and binding targets for resource

efficiency to mobilise actors at EU and Member State level?

• what standardised metrics can be developed to measure progress equitably across Europe?

• how can eco-innovation speed up progress in resource efficiency?

• how much leadership should come from business and can this be stimulated?

Principal recommendations from the participants covered resource efficiency with a need for absolute decoupling of economic growth from resource use, the major role of R&D in promoting eco-innovation and helping broaden and accelerate implementation of existing eco-innovations, the need to involve the global supply chain with joined-up policies – not only between the different DGs of the European Commission but also with other organisations such as the OECD and UNEP.

Overall the consensus was that innovation towards resource efficiency must involve more than just technological changes. Industry, governments and civil society can play an important role in creating an enabling environment, in which consumers are provided with the information and tools needed to make greener purchasing choices and adopt more sustainable lifestyles.

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Establishing consensus

Eco-innovation, both technological and non-technological, provides one of several essential contributions to achieving resource efficiency. Thus, eco-innovation can drive resource-efficiency targets. The plan should transform these targets into best practices for business and into eco-labels – and ensure guides and best practices to reach their audiences. A zero-waste target by 2050 is one example for resource efficiency requiring eco-innovative approaches.

Massive eco-financing is needed. The possible role of green investment banks should be considered in the framework of the resource-efficiency initiative as well as the Environmental Technology Action Plan (ETAP). 2. With regards to eco-innovation and R&D

The concept of eco-innovation has an impact in a broad range of areas. R&D has a major role in promoting eco-innovation and can help broaden and accelerate the implementation of existing eco-innovations in areas where they are not yet generally applied.

The European Commission, Member States and ETAP in particular should ensure that a shift in system thinking is developed to create sustainable product and service alternatives – such as material substitution and provision of services rather than products – and sustainable lifestyles. To support this line, an eco-innovation action plan should also ensure that additional research is undertaken so that products and services are available at attractive price levels.

The eco-innovation action plan should set benchmarks for eco-innovation and consider relationship between resources, a low carbon economy and eco-innovation to improve understanding and address the exploitation of ecosystem services and biotic sources in terms of best productivity and final consumption/use in product and service design.

The Birmingham declaration

1. With regard to the resource efficiency flagship initiative

The concept of resource efficiency should take a broad view of restraining resource exploitation within limitations of eco-systems, and aim for absolute decoupling of economic growth from resource use.

The resource-efficiency initiative should provide long term and intermediate targets per sector to ensure a level playing field and give guidance to entrepreneurs on environmental challenges and future regulation to help business focus and prioritise in the longer term. European targets based on clear, commonly-agreed metrics and indicators are therefore necessary but should also take into account the different resource priorities of individual Member States. Resource mapping should be considered. The development of a sustainability index for prioritised materials should be encouraged to make informed choices, drive the right behaviour and integrate considerations for sustainability into standard business practices.

Absolute decoupling is a complex concept which should be used carefully when developing a mix of economic/pricing and resource use approaches that best fits nationally, locally and globally on the basis of life-cycle analysis. Resource-efficiency measures should be embedded into other policies and other policies should be aligned with resource efficiency.

More specifically, it is also necessary to consider how to include environmental externalities into the price of goods. Market-based instruments have a role here, including switching taxation from employment taxes to resource consumption. However, tax income thus generated should be ‘ring-fenced’ and used to re-invest in research and development (R&D), education and attitude change for resource efficiency. Moreover, environmentally harmful subsidies should be diverted to sustainable solutions.

A small expert group was requested to synthesise the views and expectations of forum participants on resource efficiency and on proposed EU and joint activities in support of eco-innovation. The resulting declaration is intended to contribute to the resource-efficiency flagship initiative being launched by the European Commission in the summer of 2011 as part of the Europe 2020 strategy for smart, sustainable and inclusive growth as well as activities under an EU eco-innovation action plan.

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of sustainable enterprising, managing green supply chains, promoting less resource-intensive products and working actively with open-source and creative commons.

4. With regards to eco innovation in a global context

The concept of resource-efficiency policy should be seen as a supply chain rather than individual policies. In an attempt to make budgets go further, the Commission DGs should be seen to work together more transparently, taking their inspiration from the work in progress at the OECD and UNEP.

The EU should consider launching more intercontinental bilateral agreements. Specific examples that could be implement would be an EU-Asia zero-waste partnership building on existing Chinese, Korean and Japanese policies and a Latin America-EU partnership on the bioeconomy, building on existing exercises in Brazil and Venezuela

Eco-innovators need to be recognised and encouraged by the EU convening a side event at Rio+20 for eco-innovation in regard to resource efficiency and global sustainable value-chain management. Europe-wide sustainability criteria should be written into any Member State international trade agreement akin to a CE certification requirement.

5. With regards to eco-innovation and the social dimension

Innovation towards resource efficiency will have to involve more than just technological changes. Industry, governments and civil society can play an important role in creating an enabling environment in which consumers are provided with the information and tools needed to make greener purchasing choices and adopt more sustainable lifestyles.

In this respect, the eco-innovation action plan should help create the right conditions to shift retailers and consumers towards more environmentally-friendly behaviour. Consumer organisations and retailers should take an active part in educating consumers with, for instance, science-based evidence demonstrating the sustainability of particular products or of services which substitute for products. Consumer organisations and retailers should also contribute to making it easier for consumers to prefer

European businesses should be encouraged to look beyond their traditional physical and sector boundaries in the pursuit of creating a resource-efficient economy through eco-innovation. Existing schemes such as ‘industrial symbiosis’ would enable traditionally separate industries and organisations from all business sectors to be brought together with the aim of achieving resource efficiency. Additional research needs to be undertaken to identify and create novel open-source practices. The eco-innovation action plan should provide further support for such initiatives and their upscaling.

Finally, the European Commission and Member States should encourage business leaders to participate in policy dialogues to set up realistic short-, medium- and long-term pathways for innovation to flourish. 3. With regard to the market for eco-innovations

The Commission and Member States should design voluntary tools such as eco-labelling, technology verification, and eco-management and audit schemes (EMAS) to provide incentives to entrepreneurship and innovation in support of sustainable consumption and production. In addition, they should enforce ambitious green and sustainable procurement policies and use public procurement to stimulate and open up the market for eco-innovation as well as providing an opportunity to showcase the benefits and options of eco-innovation.

Public authorities, business and non-governmental organisations should work together to design policy instruments to extend the lifetime of products and to mainstream best practice. In addition they should aim to dismantle barriers to eco-innovation such as lack of confidence, lack of access to waste and knowledge about waste streams, vested interest and focus on life-cycle cost and the cost of environmental externalities rather than cost price.

Business and business organisations should take advantage of the opportunities in a growing market that is underpinned by the necessity to deal with resource scarcity, resource dependency and increasing waste production by encouraging and investing in eco-innovation. It is necessary that they show leadership and provide guidance. Front runners have a unique opportunity and responsibility to stimulate sustainable consumption and production by sharing examples

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sustainable and performing alternatives; including providing answers and policy direction to the paradox of choice.

In order to make an informed choice, consumers are dependent on information and knowledge about the real price of products including environmental externalities. There is a need to reflect better the full value of natural capital to society towards ‘resource credit thinking’ rather than ‘monetary thinking’ and to promote choice editing while restricting unnecessary information for consumers.Non-economic factors have been identified as highly relevant in changing consumer behaviour. Education can play a significant role in modifying attitudes and raising awareness of environmental issues. The development of skills to complement formal education and that can lead to innovation also contributes to attitude change. The eco-innovation plan should ensure that the appropriate conditions are created to support the change towards a better and more focused education so that civil society is adequately informed through awareness campaign about the personal benefits of taking action to support sustainable consumption so that they know they can make a difference.

European CommissionThe paper used in this product is manufactured

from managed forestry and is FSC certified.

For further information

• Policy and actions • Innovative technologies • Fund resources • Links and forthcoming events • ETAP news and other communication tools

http://ec.europa.eu/environment/etap

Contact: [email protected]

For the lastest information on eco-innovation in Europe, visit the official ETAP website:

Full details of the Forum programme and presentations can be found at:

http://ec.europa.eu/environment/ecoinnovation2011/1st_forum

Next Forum

11th European Forum on Eco-Innovation

Working with emerging economies for green growthTuesday 11th and Wednesday 12th October 2011in Helsinki et Lahti, Finland

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