Annexes to COM(2007)162 - Report of the Environmental Technologies Action Plan (2005-2006) [SEC(2007) 413] - Main contents

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dossier	COM(2007)162 - Report of the Environmental Technologies Action Plan (2005-2006) [SEC(2007) 413].
document	COM(2007)162
date	May 2, 2007

Agreements that it will be negotiating over the next few years with some of its key trading partners, particularly in Asia.

3.4. COORDINATION

Sharing promising practice: the ETAP National Roadmaps

Twenty-one Member States and Norway have completed roadmaps for implementing ETAP. These are available publicly and represent a significant body of knowledge on programmes, schemes, and examples of promising practice, in Member States [44]. An analysis of the roadmaps shows that a number of promising schemes are being put into place by Member States, and there is an opportunity to build on and learn from these across the EU (see Annex). Examples include:

· Germany's feed-in tariff scheme has been instrumental in boosting use of renewable energy – a number of Member States have adopted similar schemes.

· Italy's national decree requires that at least 30% of goods purchased by public authorities be of recycled origin.

· Spain's national and regional policies have spurred the deployment of solar energy, through a number of coordinated measures.

· The UK's National Industrial Symbiosis Programme, aims to save 1 million tonnes of waste per region per year, through a brokerage scheme for companies.

· A range of financial schemes to promote eco-innovation, for example those established in the Netherlands, Denmark, Finland and Sweden.

Stakeholder participation: the Forum on Eco-innovation

The Forum on eco-innovation provides a platform where stakeholders can come together, network and propose future action. The first meeting of the Forum took place in Poznan, Poland. The theme of the first Forum was “Financing Eco-innovation”. The Forum will take place twice a year on relevant themes [45].

4. Issues and Priorities for the Future

Increase take-up - Increase demand

To start making a difference on the scale required, eco-innovation must become pervasive across all business and industry. To make significant benefits, the rate at which environmental technologies are deployed and taken-up must increase significantly Large environmental gains can be made by taking-up environmental technologies that already exist on the market, but the problem is that many remain in niche markets. One example is the energy efficient light bulb still only accounts for less than 3% of European market share of light bulbs [46]. New driving forces have to be put into place to encourage the diffusion and take up of eco-innovations on a broad scale.

The Aho report on creating an innovative Europe [47], the recent Communication on innovation [48] and others [49], urge the use of "demand pull" to promote innovation. "Lead markets" can also act as a stimulus for demand [50] [51]. The analysis of the ETAP National roadmaps (see Annex) shows that R&D activities on Environmental Technologies are carried out systematically in almost all Member States – however policies to raise demand are still carried out much less systematically.

Systematic and coordinated activity on the demand-side is needed. Green Public Procurement, market based-instruments, financing for business to switch to green technologies, raising awareness in business and with consumers, all need to be intensified. These actions can raise demand at both European and Member State level and help move environmental technologies and products to the mainstream.

The Commission and Member States should actively pursue and intensify those ETAP Actions that further create demand in a systematic, coordinated manner [52]:

4.1. Further Green Procurement

Public and private sector procurement are quite different in nature – but both can lead the way in purchasing behaviour and influence take-up.

- Public sector procurement corresponds to around 16% of EU GDP. Considerable work has been done and now practical implementation needs to start taking place across Europe.

- Private sector procurement is also important, although it is not governed by a set of comprehensive rules. Large companies influence and place demands on their chains of suppliers.

· Action: Build on work that already has been done and accelerate Green Public Procurement. Diffuse model tender specifications. Prepare Communication on public procurement in 2007, set (voluntary) targets, and give guidance on indicators and benchmarking.

· Action: EC, MS, Relevant stakeholders develop strategies for private sector procurement.

4.2. Mobilise greater financial investments

The financial sector (banks, insurance companies, pension funds, investors) can play a greater role in leveraging businesses and industry to take-up environmental technologies. The eco-innovation focus of cohesion policy, the EIB and EIF initiatives, and the establishment of the CIP, are all steps in this direction. Actions aimed at the exchange of best practice and at engaging major financial institutions across Europe, and internationally, could be strengthened.

· Action: Implement EU financial instruments. Use Community financial resources to lever further financing commitments. Convene major financial institutions. Encourage guidelines and targets for financial investments on eco-innovation.

4.3. Establish Technology Verification and Performance Targets systems

Standards can set performance levels and provide assurance in the market. Verification Systems provide the market with reliable measures of environmental performance. Setting performance targets for product groups can shift towards better environmental performance. Economies of scale can be gained if performance target systems drive forward products across a sector. Links between the performance target scheme and eco-labelling are currently being explored. There is an opportunity to upgrade current labelling criteria of products and services, such as the Eco-label, Energy label and Energy Star schemes, and to keep abreast of international developments on similar schemes.

· Action: Finalise studies for the establishment of both Technology Verification and Performance targets. Run and finalise pilot schemes. Explore links with eco-labelling scheme. Prepare legislative proposals for environmental technology verification (2008) and communication on performance target schemes (2008). Revise and upgrade current labelling schemes. Keep abreast of international schemes.

4.4. Build on promising practice of Member States

It is clear from the ETAP national roadmaps that a number of promising policies for promoting eco-innovation are being put in place. There is a significant opportunity to learn and build on these schemes, particularly those that increase demand. A way of championing eco-innovation policies could benchmark and diffuse the most effective national schemes. In this way, Member States could learn from, adapt and apply similar policies, to create a multiplier effect across Europe.

· Action: In 2007 establish an initial phase where Member States propose some best practice schemes and exchange experience. Develop rules of implementation for a full scheme in 2008.

4.5. Focus on sectors with high gains

In the short term, large gains can be made by focussing on sectors where large environmental yields can be made quickly (a "low hanging fruit" strategy). This involves focussing on those sectors where eco-innovations, environmental technologies, improved products, processes and services can yield high environmental gains. Sectors include:

· Buildings

· Food and Drink

· Private transport

· Recycling and waste water industries

Studies show that the environmental impacts of products are highest in the first three of these sectors [53]. Other studies indicate that these sectors also offer potential for sustainable growth [54]. For example, sustainable construction is now the focus of a joint Member State initiative [55].

The instruments of research funding, green procurement, performance standards, financing, promising national practice and the optimisation of regulatory conditions, could be applied to promote eco-innovation in these sectors. There is also an opportunity to bring these approaches to bear on the formulation of lead markets as foreseen in the Commission's Innovation Communication where eco-innovation can play a role.

· Action: Starting 2007, identify key sectors where EU technology and products could lead worldwide, yielding high environmental and economic gains.

Evolve Support measures

In addition to the five actions to increase demand, support work of a more general nature is needed.

4.6. Ensure a strategic knowledge resource on eco-innovation

There is a real need for reliable analysis of trends in the area of eco-innovation. Bringing together timely and strategic knowledge for European public organisations, relevant business and financers can enable further growth and investment [56]. Commission services are analysing how to effectively collect, synthesise and share such knowledge, in particular the feasibility of a "networked observatory" on eco-innovation, that would build on a range of existing projects and networks, and which could include some of the key observation institutes across Europe.

· Action: Ensure an effective, strategic knowledge resource on eco-innovation that would provide relevant statistics, and identify emerging trends and global business opportunities.

4.7. Promote awareness and active participation

An important aspect of raising awareness is to promote active participation with consumers and business. The establishment of the European Forum on eco-innovation is just one small step in this direction. Similar activities could be carried out at regional, national and international levels.

· Action: Establish actions with MS under the framework of LIFE+. Expand EC level communication. Continue running the European Forum and expand participation. Promote eco-innovation internationally.

4.8. Harnessing Research

Outcomes can be optimised by further channelling and harnessing research under the 7th Framework Programme, by establishing synergies between research themes, technology platforms, emerging lead markets and regulation. Research on the methodology of technology assessment may also contribute to improve future verification and standardisation systems. There is an opportunity to promote more research in environmental technologies at the international level.

· Action: Channel future research themes (2007-13) based on ETAP priorities and future lead markets where eco-innovation plays role.

5. Summary and priority actions for the future

A lot of progress has been made – even more remains to be done. To respond to our global environmental challenges, to make eco-innovation yield large scale environmental and economic benefits, to enable Europe to seize the opportunities – all activities have be stepped up and carried out on a new scale, with much more emphasis on demand. In summary, the focus is on 5 actions that increase demand and 3 support measures:

INCREASE DEMAND:

· Further Green Procurement

· Mobilise greater financial investments

· Establish Technology Verification and Performance Targets systems

· Build on Promising Practice of Member States

· Focus on sectors with high gains

SUPPORT MEASURES:

· Ensure a strategic knowledge resource on eco-innovation

· Promote awareness and active participation

· Harness Research

[1] Stern Review: the Economics of Climate Change

[2] Millennium Ecosystem Assessment

[3] Living Planet Report 2006

[4] Eco-innovation means any innovation that benefits the environment – embracing technological innovation, process innovation and business innovation

[5] COM(2005) 330 final

[6] Council 7775/06

[7] Council 10117/06

[8] ec.europa.eu/education/policies/educ/eit/index_en.html

[9] Presidency Conclusions, July 2006 Turku, Finland

[10] Ecological Industry Policy, Memorandum for a "New Deal" German Ministry for the Environment (2006)

[11] COM (2004) 38 final

[12] COM(2005) 16 final

[13] Innovation Dynamics Induced by Environmental Policy (2006) and Ex-post estimates of costs to business of EU environmental legislation (2006)

[14] Eco-industry, its size, employment perspectives and barriers to growth in an enlarged EU. (2006)

[15] Wind Force 10 GWEC (2005)

[16] Solar Generation EPIA (2006)

[17] Environment, Innovation, Employment. German Ministry for the Environment 2006

[18] European Business Facts and Figures 2005

[19] Analysis of the EU Eco-industries, their employment and export potential. ECOTEC (2002)

[20] Dow Jones Sustainability Indexes Annual Review (2006)

[21] European Cleantech Investment Report (2006)

[22] Cleantech goes global, Environmental Finance (June 2006)

[23] European SRI Study – 2006. European Social Investment Forum

[24] Greenhouse gas emissions trends and projections in Europe 2006. EEA (2006)

[25] LRTAP Convention Emission Inventory 1990-2004. EEA (2006)

[26] Health Aspects of Air Pollution WHO (2004)

[27] COM(2006) 216 final

[28] cordis.europa.eu/technology-platforms

[29] Environmental Innovation - bridging the gap between environmental necessity and economic opportunity (DTI 2006)

[30] www.promote-etv.org; www.est-testnet.net; www.eurodemo.info

[31] A market survey of companies on the potential of an EU wide verification system IPTS (forthcoming)

[32] COM (2006) 847. COM (2007) 1 final

[33] The Top Runner Programme in Japan – its effectiveness and implication for the EU, The Swedish Environmental Protection Agency (November 2005)

[34] Performance Targets in Production Processes, IPTS (not yet published)

[35] Directive 92/75/EC and 2005/32/EC

[36] Council Regulation 1083/2006 Council Decision 2006/702/EC

[37] ec.europa.eu/environment/life

[38] COM (2007) 140 final

[39] ec.europa.eu/comm/competition/state_aid/reform/rdi_en.pdf

[40] See http://ec.europa.eu/environment/gpp

[41] ec.europa.eu/environment/etap

[42] ec.europa.eu/development/body/theme/environment/ENRTP.htm

[43] COM(2006)583

[44] ec.europa.eu/environment/etap/roadmaps_en.htm

[45] ec.europa.eu/environment/etap/forum_en.htm

[46] Residential Lighting Consumption and Saving Potential in the Enlarged EU JRC (2006)

[47] Creating an Innovative Europe. European Commission, EUR22005 (2006)

[48] COM(2006) 502 final

[49] A Will to Compete: a competitive, clean and clever Europe (2006)

[50] European Competitiveness Report. SEC(2006) 1467/2

[51] Competitiveness Council, 15717/06, December 2006

[52] Based on the outcomes of the Green Paper on market based instruments, further actions may be undertaken

[53] Environmental Impact of Products EIPRO, and IMPRO looks at ways of reducing these impacts. The studies are based on life cycle analyses, so for example, "Buildings" include new construction, maintenance, repair and demolition. Here the term "Buildings" is used instead of "Housing". This includes furniture, domestic appliances and energy for purposes such as room and water heating.

[54] www.popa-ctda.net; www.ectp.org

[55] www.ukswedensustainability.org

[56] The ICT Observatory provides a similar service: www.eito.com

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