Eco-innovation in Denmark
EIO Country Profile 2011
Eco-Innovation Observatory
The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation information, gathered from across the European Union and key economic regions around the globe, providing a much-needed integrated information source on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development.
The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as:
“Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle”.
To find out more, visit www.eco-innovation.eu
Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.
EIO Country Profile: Denmark 2011 1
Eco-Innovation Observatory
Country Profile 2011: Denmark
Author Jens Kristian Nørgaard
Coordinator of the work package Technopolis Group Belgium
Acknowledgments The document has been prepared with the kind support of Mr Jens Schultz Hansen, Niels Henrik Mortensen, & Michael Rasmussen, Danish Environmental Protection Agency, Ministry of Environment, and the Danish companies Envotherm, Haldor Topsoe, Grundfos, Genan and Novozymes.
A note to Readers Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission. A number of companies are presented as illustrative examples of eco-innovation in this report. Their inclusion in this report does not imply that EIO endorses these companies and, it should also be noted that, the report is not an exhaustive source of information on innovation at company level.
This brief is available for download from www.eco-innovation.eu/Denmark
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Table of contents
Summary ...... 4 1 | Introduction ...... 5 2 | Eco-innovation performance ...... 6 3 | Established eco-innovation areas and markets ...... 10 4 | New trends and emerging eco-innovation markets ...... 18 5 | Public policy in support of eco-innovation ...... 22 6 | Main findings ...... 27 6.1 Strengths and weaknesses of eco-innovation in Denmark ...... 27 6.2 Opportunities and threats to eco-innovation in Denmark ...... 29 References ...... 31 ANNEX 1. Policy measures addressing eco-innovations in Denmark ...... 34
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Summary
Denmark holds one of leading position on the EU27 eco-innovation scoreboard 2011, where the country is ranked as number three after Sweden and Finland. Denmark maintains a high level of eco-innovation output, compared to the majority of other EU countries. The high eco-innovation input naturally has a positive effect on the level of eco-innovation activities, where Denmark is still in top five. However the country does not manage to translate the high eco-innovation output into a higher socio-economic and environmental outcome.
The recent change in the Danish Government (October 2011) is expected to bring new initiatives and updates in the field of Eco-innovation. For the time being, there will not be a big difference in the current support of eco-innovation, but over the coming years it is anticipated that the new Government will increase the financial investments in greener technologies. A key feature in their election programme is to convert Denmark into a green economy by promoting renewable energy, better public transportation, and green growth companies.
Denmark has for years been a leading exporter of environmental solutions and technology, illustrated by more than 700 companies occupied with eco-innovation, especially on solutions for water and energy systems. In the last years, the market share of eco-innovation products has actually been growing faster than the total export of regular products, and today it constitutes 16% of total exports equivalent to €15.5m. In addition, the export of environmental services, licenses, and consulting has to be added to this amount.
The key priorities in the current Danish action plan are to concentrate resources on R&D in the fields of water, air, and waste, which have been the traditional strong holds in Danish eco-innovation, including a strong focus on energy efficiency and energy production through recycling, reduced material flows, and development of renewable energy sources. This also includes a strong focus on systemic innovation, with the objective to create closed loop and waste-free models that does not impact the environment or societies. Development and export of eco-innovation products remains a key objective on the policy agenda, and the Government is currently planning a review of the environmental framework, in order to develop a “national strategy for eco-innovation”.
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1 | Introduction
Eco-innovation challenges and needs in Denmark are associated with economic development priorities and a number of environmental goals.
Compared to other OECD countries, Denmark has in the last years experienced a lower economic growth rate than the majority of other OECD countries, and the country has been hit hard by the economic crisis (Eurostat, 2011). With few natural resources, the mixed economy of Denmark relies almost entirely on human resources, with a service sector that makes up the vast amount of the employment and economy. In 2010, the service sector accounted for 68% of total GDP in the private sector, 64% of total private employment, and for 80% of new jobs in the country (Dansk Erhverv, 2010). This leaves innovation and research, especially in the private sector, as a key driver to sustain growth.
The market for eco-innovation products is becoming increasingly competitive, involving a number of challenges for Denmark. The country is experiencing a decrease in overall competitiveness, due to increasing salaries, which has damaged productivity and it is becoming harder to attract well-educated labour and researchers, due to high tax pressures and living costs. This demands an efficient framework for developing new market potentials, including well-targeted funding schemes and financial incentives.
Denmark has one of the highest material flows in Europe, and the material productivity would be rated lower, if it was not due to a high production of renewable energy and efficient recycling systems. An increased consumption in goods and energy has undermined the gains in efficiency, and it will take more than an improved performance in energy efficiency to reach the targets. From 1990 - 2007 the consumption of clothing increased with 79%, and the consumption of other goods, like electronics and interiors, increased with 92%. In particular, this consumption was accelerating from 2002 – 2007, before the financial crisis (DMU, 2009).
In Denmark, 62% of the total land area is under heavy agricultural production, and 12% is designated forestry (DMU, 2011). The agricultural activities are extremely resource intensive, in particular in terms of energy, which has a negative impact on the environmental outcome. Another important sector is transportation of cargo, where maritime transportation also contributes a large part of e.g. GHG emissions. Despite good improvements in energy efficiency over the last decade, Denmark will be far from meeting its Kyoto targets.
Three areas have been identified as high priorities to Eco-innovation development, namely water, air pollution (including GHG emissions and mitigation of climate change), and waste. They are seen as key to deal with current environmental problems, such as pollution of coastal zones with nutrition’s, particle pollution in urban areas, pollution with pesticides in drinking water, and greenhouse gas emissions from agriculture and industry. An important feature on the new Government agenda is to reduce the high consumption of fossil fuels. Additional resources are expected for investments in a carbon-free economy, through areas like wind energy and bio-mass, which are already dominant sectors in Danish Eco-innovation. The overall goal is to create better conditions for testing and demonstrating environmental technologies, to connect environmental regulation with a demand for more efficient technology, increase cooperation among scientists and the private sector, and to help companies penetrate new markets. (Ministry of Environment, 2010, 1 & Regeringsgrundlaget, October 2011)
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2 | Eco-innovation performance
The analysis in this section is based on the EU-27 Eco-innovation scoreboard (Eco-IS) for the year 2011. The Eco-IS via its composite Eco-innovation index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. Eco-IS is based on 16 indicators which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as environmental outcomes and socio-economic outcomes. With an overall score of 138, the Danish eco-innovation performance scores third highest after Sweden (score of 142) and Finland (score of 149) in the list of EU-27 member states (EU average at 100), as illustrated below in Figure 2.1. Denmark is followed by Luxembourg (score of 130), Spain (score of 128) and Austria (score of 125).
Figure 2.1 EU27 Eco-innovation scoreboard 2011, composite index
Source: EIO, 2011
Figure 2.2 illustrates the 5 main components behind the Eco-Innovation Scoreboard Index; Eco- Innovation Inputs, Eco-Innovation Activities, Eco-Innovation outputs, Environmental Outcomes and Socio-Economic Outcomes. The most interesting observation for Denmark, in comparison with the EU- 15, is the ratio between eco-innovation input and output. Like in 2010, Denmark is still maintaining a high level of eco-innovation output, compared to the majority of other EU countries that must provide a bigger eco-innovation input to achieve the same output in units. The high eco-innovation input naturally has a positive effect on the level of eco-innovation activities, where Denmark is still in top five. On the contrary, it is interesting to observe that Denmark does not manage to translate the high eco-innovation output into a higher socio-economic and environmental outcome. In both areas Denmark is declining and on the index for environmental outcomes the country is only ranked number 9, while the socio-economic outcomes falls as low as number 14. One explanation could be that that the eco-innovation output is to some extent materialised as export to foreign markets and not for consumption at the national level, or that the outputs are still fragmented from the outcomes. An example of the latter is the case of environmental patents that do not appear to have a large impact on energy and materials gains.
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Figure 2.2 Components of the eco-innovation composite index for Denmark, 2011
Source: EIO, 2011
Eco innovation inputs The eco-innovation inputs are based on Governments environmental and energy R&D appropriations and outlays, total R&D personnel and researchers, and total value of green early stage investments (Clean-Tech). In line with 2010, Denmark shows a good performance with a score of 184 and is still ranked in the top four slightly behind Ireland (score of 211), Sweden (score of 213), and Finland (score of 272). This is in the high end of the EU, and in line with the high eco-innovation activities and outputs for Denmark in figure 2.2.
In terms of the financial inputs, the Government’s environmental and energy R&D appropriations and outlays were 6% of GDP in 2009, compared to 5% in 2008. Top investors are the authorities of Finland and Spain with 8% and Germany with 7%. Despite the fact that Denmark scores just above the EU average, it is likely that the higher eco-innovation output could be accredited to a more efficient and higher level of R&D personnel and researchers, combined with a strong culture for seeking new patents. The amount of Clean-Tech capital investment in 2007-2009 was €1.07b, which is above average compared to the EU-15. According to Danish Statistics, the Danish society as a whole spent a total of 51.1b DKK (6.9b Euros) on R&D in 2009, representing 3.09% of GDP.
Eco innovation activities Denmark has experienced a severe decline since 2010 on the ranking of Eco-innovation Activities. In 2010, Denmark was ranked as number two in the EU (with a score of 223), but in 2011 the country has declined to a rank as number 11 with a score of 107, behind top performers like Spain (score of 224), Czech Republic (score of 171), and Sweden (score of 156). This measurement is based on the activities of companies reducing their material use through innovation, combined with the number of ISO14001 certified organisations. The share of firms with innovations leading to lower material use and CO2 emissions was only 7.33% in 2006, which is quite low compared to the EU-27 average, and there is no data available for 2008.
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However, in the case of Denmark the calculation of eco-innovation activities is suffering from using ISO14001 registrations as the basis instead of companies with EMAS certification. Traditionally, Denmark applies a strong environmental regulation, and in this context many industries have preferred to implement the European Eco Management and Audit Scheme, which set stricter environmental targets and standards for the company performance. In 2010, Denmark was ranked fourth in terms of EMAS certified companies in the EU27. A reason to the low frequency of ISO14001 certifications could also be the high share of products linked to agricultural production, where producers have been more resistant to obtain environmental standards. In 2009, the European Commission corrected Denmark for lacking behind in environmental certifications of the agricultural sector (Ministry of Environment, 2009, 2).
Eco innovation outputs In terms of eco-innovation outputs, expressed as the number of pollution-abatement patents, waste management patents, and patents in energy efficiency in buildings and lighting (or just eco-patents), and eco-innovation related publications and eco-innovation related media coverage, Denmark is ranked as number five in the EU (score of 182), behind the top performer Luxembourg (score of 240), Austria (score of 223), Sweden (score of 187), and the Netherlands (score of 186). However, Denmark (together with Germany) is the top-performer on number of eco-patents with 21/million inhabitants, followed by Sweden (15 eco-patents/million), and Finland (14 eco-patents/million).
Denmark almost has three times as many eco-patents than the average EU, which is also reflected in figure 2.2 with a very high eco-innovation output. In comparison with the lower environmental outcomes, it could be questioned if the higher number of eco-patents truly is contributing to a decrease in the overall flow of materials and energy, or if there is a larger segment of patents with a more cosmetic influence on the environment.
It is nevertheless interesting to see that Denmark has dropped on the overall performance in eco- innovation outputs, after eco-innovation publications and media coverage have been added as indicators, as Danish media coverage of environmental issues in general is high.
Environmental outcomes The material productivity in Denmark in 2007 was 1.06 euro/kg, which is just equal to the EU average. This level is quite low compared with the high level of eco-innovation activities in the country. The low performance is particularly due to the high consumption of fossil fuels, construction materials, and manufactured products. Water productivity was 17.64 euro/cubic meter, with domestic water consumption (DWC) of 7.68 billion m3 in 2001. Energy productivity is 19.4% higher than the EU average and amounted to 8080 euro/ton of oil equivalent in 2009. The GHG emissions intensity of the whole economy was 0.39 kg of CO2 equivalent/euro in 2009, which is a total of 60.98 million tonnes CO2 equivalents. With a score of 109 for this intensity indicator, Denmark is slightly above the EU average.
It should however be noted that Denmark is one of the countries with the highest material flow in Europe, and the material productivity would be rated lower, if it was not due to a high production of renewable energy and efficient recycling systems, which have a positive influence on the above- mentioned indicators. In addition, despite of good improvements in energy efficiency over the last decade, Denmark will be far from meeting its Kyoto targets. An increased consumption in goods and energy has undermined the gains in efficiency, and it will take more than an improved performance in energy efficiency to reach the targets. From 1990 - 2007 the consumption of clothing increased with 79%, and the consumption of other goods, like electronics and interiors, increased with 92%. In particular, this consumption was accelerating from 2002 – 2007, before the financial crisis (DMU, 2009).
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Likewise, there are also areas that inflate the scores of eco-innovation in a negative direction. In Denmark, 62% of the total land area is under heavy agricultural production, and 12% is designated forestry (DMU, 2011). The agricultural activities are extremely resource intensive, in particular in terms of energy, which has a negative impact on the environmental outcome. Another important sector is transportation of cargo, where maritime transportation also contributes a large part of e.g. GHG emissions.
Socio-economic outcomes The most surprising indicator in the updated eco-innovation scoreboard is the low score on socio- economic outcomes. Here Denmark is only ranked 14 with a score of 98, which is below the EU average, and far behind countries like Slovenia (score of 233), Bulgaria (score of 193), and Belgium (score of 153). Aggregated statistics on employment in eco-innovation industries, the size of eco- innovation markets, and exports of eco-innovation products are used to measure socio-economic outcomes. In 2008, 1.75% of the Danish labour force was employed in eco-industries, compared to the EU-27 average of 1.43%. The turnover in eco-industries is currently declining with a 3.52% of GDP in 2008, compared to a turnover of 4.46% of GDP in 2004. The total turnover of the Danish eco-industry was 8793 million Euros in 2004. The share of eco-innovation exports is 0.21% of total exports, which amounts to 159 million Euros of exported eco-innovation products in absolute terms.
This is an interesting development, as exports of greener technologies and services are thought to be a key feature by the Danish Industry and consulting companies. It is difficult to pinpoint the exact reasons for this decline, but Denmark, like many other EU countries, is experiencing increasing competition in markets for traditional environmental technologies. One of the best examples could be the wind energy sector, where Denmark for years has been one of the world leaders. Today this market is experiencing fierce competition, not only from inside EU, from countries like Holland and Germany, but also from countries like China.
A barrier to continued growth in Eco-Innovation and a reason for low socio-economic impacts could also be the high living standards and taxation in Denmark. It makes it more difficult to attract foreign researchers and scientists to the country, and it has resulted in a decreasing competitiveness, due to high salaries. The wages in Denmark are the highest in the OECD, only surpassed by Norway. Since productivity has not followed the increasing salaries, it is concluded that Denmark's wage competitiveness is weakened by approximately 15% since year 2000 (FTF, 2011).
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3 | Established eco-innovation areas and markets
The country’s leading eco-innovation areas are in water efficiency, waste recycling, air pollution control, energy efficiency and renewable energy technologies. The recent change in Government (October 2011) is expected to bring new initiatives and updates in the field of Eco-innovation. For the time being, there will not be a big difference in the current support of eco-innovation, but over the coming years it is anticipated that the new Government will increase the financial investments in greener technologies. A key feature in their election programme is to convert Denmark into a green economy by promoting renewable energy, better public transportation, and green growth companies (Regeringsgrundlaget, 2011). A more detailed overview of the Government support is elaborated in chapter five.
Boosting the market for Danish eco-innovation As illustrated by the data in chapter 2, the market for eco-innovation in Denmark has been declining in the recent years. With the latest signals from the new government, it can therefore be expected that new initiatives should seek to expand the frameworks for eco-innovation with the objective to increase the total share of exports.
Today, products and services related to energy and environment has become the second-largest export sector in the country, only surpassed by the transport sector but more important than food products (Danske Regioner, 2010). In Denmark, there are currently a total of 205 companies occupied with environmental technologies in the field of water, employing 35.000 full-time staff; there are a total of 142 companies occupied with environmental technologies in the field of waste, employing 21.000 full-time staffs; and there are a total of 241 companies occupied with environmental technologies in the field of air, employing 38.000 full-time staffs (Ministry of Environment, 2010, 1). Altogether, this is approximately 4% of the Danish labour force.
This provides a solid structure for eco-innovation development and the foundation is definitely in place for boosting the current market. Denmark has for years been a leading exporter of environmental solutions and technology, illustrated by more than 700 companies occupied with eco-innovation, especially on solutions for water and energy systems. In the last years, the market share of eco- innovation products has actually been growing faster than the total export of regular products, and today it constitutes 16% of total exports equivalent to €15.5m. In addition, the export of environmental services, licenses, and consulting has to be added to this amount. (Ecoinnovation.dk, 1)
It is also expected that there is further potential for exports of eco-innovation products and services in the coming years and in the Danish action plan for eco-efficient technology 2010-2011 a priority is particularly exports to new markets in China and India, where the demand for efficient environmental solutions is expected to grow due to increasing living standards and materials consumption. The key priorities in the current Danish action plan are to concentrate resources on R&D in the fields of water, air, and waste, which have been the traditional strong holds in Danish eco-innovation, including a strong focus on energy efficiency and energy production through recycling, reduced material flows, and development of renewable energy sources. (Ministry of Environment, 2010, 1)
The content of the current action plan is still in line with the objectives of the new Government, which also define water, air, and waste as key thematic areas. The difference will be an increased focus on development of renewable energy sources, in particular wind energy and biomass. Therefore, the key challenges will be to build on top of the competences and technologies, where Danish companies
EIO Country Profile: Denmark 2011 10 already have invested a lot of resources in R&D in the previous years, and where strong market relations already exists. The following are some of the important eco-innovation areas in Denmark.
Water In the field of water Denmark has a number of leading enterprises, such as Grundfos who is the world leader in pumping technologies, combined with a big group of smaller but innovative companies specialising in niche productions. Some of the most important products are water saving technologies (please see the example of water efficient car washes developed by Envotherm), treatment techniques for drinking water, and water pumps, but also more general system solutions for water infrastructure and maintenance, monitoring, and modelling. In particular, water treatment is identified as one of the areas, where Danish companies has unreleased potential through development of new systems combing some of their existing products, such as membrane technology, ultra-violet technology, electro-chemical cleaning, and enzyme technology. (Ecoinnovation.dk, 2) There is also a link between the area of water technology and Climate Change. A group of companies have specialised in techniques that reduce the risk of overflow of wastewater or flooding’s under extreme weather conditions, including modelling tools for Climate Change Adaptation of infrastructure (Ministry of Environment, E2010, 1).
Envotherm closed loop car wash
Envotherm A / S were founded in October 2006, with focus on cleaning of wastewater. In 2007 the first plant was sold to a German sewage collector, a facility that purifies 2500 litres of water/hour. The system had a payback period of 6 months. However, the company noticed a segment in the market for smaller plants, and in 2008 Envotherm had developed a product range from 350 - 1000 litres/hour.
It leads to a number of contracts for smaller systems, for instance, a treatment facility for a company in the surface treatment business; a facility for Danish Oil Recycling, a petroleum refinery; for Karup Airbase (helicopter wash) and a district heating plant (wood fired), who both suffered from Cadmium pollution in their sewage water; and in 2010, a plant for another refinery, Doll Bergen in Hannover. Systems have also been delivered to refineries in Germany and to a producer of fertilizer in Dhaka, Bangladesh.
In 2010, Envotherm became aware of a need to reuse water from car washes and developed a car wash plant. The first system was tested for 8 months in Statoil (gasoline station), which led to an order for 10 car wash facilities ultimo 2011. Envotherm is fully in charge of the design and programming, as well as the installation, management, and final testing of the facilities. All spare parts are produced by Danish or German subcontractors. Up to 70% of the system service can be done through the Internet. The plant is equipped with a series of alarms that enables Envotherm to identify and solve the problem remotely.
The reduction in water usage can be reduced from 150 litres to 4 litres/car wash. The system also uses less soap, due to the appliance of distilled water. If the system collects between 50-100 m3 of rain water per year, the water consumption can be reduced to zero. The system does not discharge any heavy metals and other hazardous chemicals to public treatment facilities, and it limits the burden on the public sewage systems. Finally, the energy consumption is reduced to a minimum. The industrial facilities developed by Envotherm got a payback period between 6-24 months. In comparison, the life cycle of the plants, which are built in stainless steel is around 10-12 years. The ET Carwash facilities
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got a payback period of about 3 years, if they reach an amount of 10-12.000 visitors/year.
Source and further information: www.envotherm.dk
Waste Denmark has one of the world’s most environmentally friendly waste systems, building on strong competences in recycling or incineration for energy production. This includes a number of strong niches, such as treatment of hazardous waste and specialised types of waste (please see the example of recycling of used Rockwool by Enviso Group, or the example of scrap tyres by Genan). As a consequence, companies in this sector are strong on exporting entire waste system solutions, especially to countries where infrastructure has been developing in a fast pace over the last years such as many Asian countries. Some of the more specific competences in Denmark include waste incineration, with some of the biggest suppliers based within the country, leading technologies in biogas production (especially based on livestock manure as raw material), technologies for recycling of special waste, such as wings from wind mills, insulation, and concrete, and treatment of shredder waste like laminated glass, gips, and auto rubber (please see the example of enzymes developed by Novozymes for making cellulosic ethanol out of Municipal Solid Waste. (Ecoinnovation.dk, 2)
Recycling of Used Rockwool by Envisio Group A/S
The recycling concept will primarily include the reprocessing of used rock wool to new commercial rock wool products. However, the initial research on used rock wool materials also shows other potentials, and the partnership is therefore seeking to find other alternatives as well, for example as substation in production of road materials. The latter could lead to a substantial reduction in production of new asphalts, and would include severe energy savings. This may be relevant in cases where the used rock wool would not be able to meet the required specifications for new product standards, or when the rock wool manufacturers, due to time constraints, do not have the possibility to absorb all recycled materials.
The product is currently being developed in a Danish context, but the objective is to adjust the product to foreign market requirements, in order to export the concept for recycling of rock wools. This would be important to the Danish company Rock Wool, who is a global market player in insulation.
The demonstrate phase includes several steps. The first phase, which started in January 2011, focuses on analysing the drivers and barriers to the developed recycling concept in the Danish market, as well as in United States and other foreign markets. The second phase, with start date in September 2011, kicked off the development and testing of the technologies for separating the used rock wool materials, followed by purification and compression. In parallel with this, the involved companies are analysing and developing the logistical solutions for Denmark and selected foreign markets, in order to be able to introduce the technology as a commercial product. The last phase is scheduled to start in April 2012, which will involve real life demonstrations and testing of the recycled rock wool materials, both as new building insulation as well as a material for substitution in road materials.
The main environmental impact would be reduced greenhouse gas emissions and mitigation of climate change. The tested technology can lead to energy savings at several levels. Besides the most obvious benefit, which would be energy efficient buildings, the recycled insulation product could demonstrate to have a more energy efficient life cycle, compared to new products where extra raw materials and processing of these will be required. In the case of NCC Road and their asphalt production, there would be similar benefits, by substituting the input of raw materials in the asphalt productions. At the end of the life cycle, the project reduces the production of construction waste, which would need to be landfilled.
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The project is being developed with support from the Danish "innovation fund": www.fornyelsesfonden.dk/projektdb/0/24/123
The partnership consist of: Enviso Group A/S (www.envisogroup.dk), Rock Wool A/S: (www.rockwool.dk), NCC Roads A/S (www.ncc.dk/da/Materialer-og-services/Asfalt-og-belagning); Recycling Centre Horsens (www.stenarecycling.dk)
Source: www.envisogroup.dk
Innovation in scrap tyre recycling
Genan is the world’s largest scrap tyre recycler with four large recycling plants in Europa and the world’s largest tyre recycling plant under construction in Houston, Texas, USA. It is Genan’s vision that all scrap tyres in the world should be recycled in the environmentally and economically most beneficial way. Today, a large share of the scrap tyres in the world end up being incinerated in cement kilns, or disposed of in landfills or civil engineering operations, where the superior materials of scrap tyres are not recovered to replace new virgin material.
Comprehensive life cycle assessment studies have shown that significant environmental benefits in areas like greenhouse gas emissions, acidification and fossil fuel demand are achieved if scrap tyres are recycled through the Genan method instead of incinerated or used in civil engineering filling operations. Material recycling through the Genan method compared to other disposal methods saves 1-2 tonnes of CO2 per tonne of scrap tyres.
Genan’s recycling technology was originally developed in 1990 and has undergone continuous development ever since. The scrap tyres are separated into their basic components: rubber powder and granulate, steel and textile. The end products are uniform and clean and therefore very well suited for high quality substitution applications, such as asphalt and bitumen modification which makes the roads stronger and longer lasting. This leads to saved maintenance costs and less time spent on repair works. The use of Genan’s rubber powder in asphalt and bitumen modification avoids the production of virgin alternative modifiers like styrene-butadiene-styrene.
The recycled rubber granulate is also being used as high-quality infill material for artificial turf pitches. The use of artificial turf is highly recommended by international soccer organizations such as FIFA since it helps the development of football in all parts of the world as well as provide the opportunity to play all year round at low maintenance costs.
However, even more interesting is the current cradle-to-cradle joint research development project together with the large tyre manufacturer, Pirelli, which hopefully will lead to the substitution of 10 % of all natural rubber in the production of new tyres. The last 5 years' price increase on virgin rubber has resulted in an increasing focus on raw material substitution and the preliminary results are promising.
Source and further information: www.genan.eu
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Enzymes for biofuel by Novozymes
Making biofuel from trash Municipal solids waste (MSW) – more commonly known as household trash - is a growing problem, as the world produces more and more of it. Thanks to Fiberight and the input of enzymes from Novozymes, MSW can now be transformed into valuable biofuel, even though it has a complex composition, which can difficult to separate. It is neither homogeneous nor fully convertible to energy. It is not the easiest material to turn into something useful, but Craig Stuart-Paul, CEO of Fiberight, has the creative vision to see its potential. With experience in the recycling and waste management business he is uniquely positioned to benefit from emerging technologies creating a new and green business opportunity. Fiberight, founded in 2007, is focusing on turning “black bag” MSW into next- generation biofuels. The company’s process separates, cleans, and processes the items we throw away into an organic fraction, a hydrocarbon fraction, and an inert fraction. Most of the organic fraction is converted into cellulosic ethanol, the hydrocarbon (plastics) into electricity, and the inert into recyclables and other beneficial products.
Sorting is key The first step on the road to making cellulosic ethanol out of MSW is to fractionate the waste stream into 4–5 distinct materials. Two of the materials are organic – a bio pulp and a bio liquid. It is the bio pulp fraction, making up about 45% of the MSW, which is used today to produce cellulosic ethanol.
Sorting the MSW is a key step in the process. “You can’t just back up a garbage truck into an ethanol machine and add some enzymes,” says Craig Stuart-Paul. “The core process really focuses on taking a nonhomogeneous feedstock and creating a washed and pre-treated, homogeneous feedstock optimized for enzymatic hydrolysis.” After sorting, washing, and pre-treating the bio pulp is converted into sugars before further fermentation into cellulosic ethanol. To do this Fiberight relies on Novozymes Cellic® CTec2 for hydrolysis of lignocellulosic materials. Cellic can be used on a variety of feedstock’s such as corn cobs, MSW, wheat straw, and sugarcane bagasse. “When we were originally developing our Cellic enzymes, I must admit MSW was not the first feedstock on our minds,” says Cynthia Bryant, Global Business Development Manager at Novozymes. “We were of course primarily focusing on corn cobs and stover, but our Cellic products are robust and, together with Fiberight, we have found that Cellic works quite well on the feedstock in their process.” As the technologies for cellulosic ethanol are commercialized, producers such as Fiberight will continue to rely on higher-performing enzymes. Novozymes’ effort in cellulosic ethanol is the largest R&D endeavour in the company’s history with over 150 people working on developing solutions.
Source: www.biotimes.com/en/Articles/2010/september/Pages/makingbiofuelfromtrash.aspx
Air Air pollution is also an area where Danish companies are doing well on developing eco-innovative solutions, such as the company Haldor Topsoe. Interesting areas are technologies for cleaning of fuels, high efficient ship engines; cleaning of combustion gasses from power plants and industrial companies, and waste incineration (please see the example of Haldor Topsoe´s wet gas sulphuric acid - WSA – technology). This also includes competences in combustion processes, and monitoring and modelling of air pollution. A number of companies are also leading in developing particle filters and catalysts for cars. A high degree of these products are being developed for exports or for part components in other productions outside Denmark. (Ecoinnovation.dk, 2) In technical terms, these treatment technologies are to a large degree focusing on treatment of NOx’s, particle pollution, and SO2 (Ministry of Environment, 2010, 1).
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Topsoe’s Wet gas Sulphuric Acid technology
Topsoe’s Wet gas Sulphuric Acid technology (WSA) recovers sulphur from off-gases and produces commercial-grade concentrated sulphuric acid. It is also used to regenerate spent sulphuric acid and to produce sulphuric acid from elemental sulphur.
The WSA technology fulfils clients’ requirements for compliance with sulphur emission standards; producing no undesired by-products, efficient heat recovery, flexibility and simplicity, low capital and operating expenses
Topsoe designs the WSA plant to meet each client's specific needs. The projects are defined and executed in close collaboration with the clients and their contractors. The WSA technology can be designed to any required emission standards and it does not generate secondary pollution. The WSA and SNOXTM processes are simple and efficient sulphur recovery processes which meet the demands of the industry for environmental compliance, low energy usage, and low overall operating costs. Sulphur in any form is recovered as concentrated sulphuric acid of commercial quality. The WSA technology can be applied for a variety of process streams, ranging from flue gases to concentrated H2S gases as well as for elemental sulphur and various sulphur containing liquid waste materials.
The WSA technology uses Topsoe's unique VK-W of catalysts and includes a number of features: ability to process feeds containing critical compounds such as SO3, NH3, CO2, HCN and hydrocarbons
simultaneous treatment of many sulphur-containing streams
simple process scheme with only a few pieces of equipment
no waste by-product is produced.
efficient heat recovery and maximum export of superheated steam at desired pressure
very low consumption of cooling water
easy to combine with SCR for NOx removal
The WSA process is a wet gas catalytic process where the concentrated sulphuric acid is produced by condensation from a wet process gas. As the process gas is not dried prior to treatment in a WSA plant, generation of waste water and loss of sulphur is avoided.
The first process step produces an SO2 gas at the operating temperature of the oxidation catalyst in the SO2 converter. The catalytic conversion of SO2 to SO3 takes place in one or more beds of catalyst from Topsoe's VK-W series. Reaction heat is recovered between the catalyst beds by production and superheating of steam. After the last conversion step the gas is cooled and the SO3 reacts with water vapour to form gas phase sulphuric acid.
The process gas is cooled by a counter current flow of air in the proprietary WSA condenser. Hot air generated in the WSA condenser may be used as preheated combustion air or just to preheat the feed gases in order to ensure optimal energy efficiency.
The WSA condenser The design of the WSA condenser allows controlled cooling of the process gas and condensation of the sulphuric acid without formation of acid mist. The vertical glass tubes, the brick-lined bottom section and the coated tube-plates of the condenser are designed for long service life and avoidance of corrosion.
The VK-W catalyst series Another important element of the WSA process is the proprietary Topsoe catalysts - the VK-W series -
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developed for the conversion of SO2 into SO3 in the presence of water vapour. The catalysts feature high activity and stability. Source and further information: www.topsoe.com
Other key areas With the introduction of renewable energy in this year’s eco-innovation update, it is very important to highlight one of Denmark key technology areas, wind energy. Denmark has since the late 1970s built a strong technology and research competence in wind energy. The global market share of the two largest Danish wind turbine manufacturers were over 20% in 2010. (Miljøstyrelsen, 2011) A lot of this contribution can be accredited to the work of the company Vestas.
A group of biotechnology companies, such as Novozymes, are also highly competent in developing bio- chemical products, such as enzymes for catalysts in industrial processes, in order to improve efficiency or substitute the use of chemicals with an overall reduction of raw material and energy input. Examples are higher efficiency performance in wash powders, in paper production, and textile production (Ecoinnovation.dk, 2). Bio-chemical innovations also count fuels cells for substitution of lead in batteries, alternative substances for cooling and heat transmissions, and substitution of phthalates in PVC (Miljoestyrelsen, 2009, 1).
Finally, Danish regions and industries are advanced in exploring solutions for systemic innovations, with the objective to develop closed loop systems or products developed on a cradle to cradle analysis. A well-known case from Denmark is the development of Industrial Symbioses in the Municipality of Kalundborg (please see the example on industrial symbioses in Kalundborg). The Industrial Symbiosis is a networking cooperation project involving a number of industries, waste-handling companies and Kalundborg Municipal Distribution in which the parties utilise each other’s residual or by-products commercially. In that way, production can be increased without enhancing the consumption of water, energy, or other resources correspondingly, and thereby maintaining production costs while benefitting the environment at the same time.
Kalundborg industrial symbiosis
The Danish municipality Kalundborg has for several years been known for their research and development in industrial symbiosis. The Industrial Symbiosis is a networking cooperation project involving a number of industries, waste-handling companies and Kalundborg Municipal Distribution in which the parties utilise each other’s residual or by-products commercially. In that way, production can be increased without enhancing the consumption of water, energy, or other resources correspondingly, and thereby maintaining production costs while benefitting the environment at the same time.
The network consists of the seven companies: DONG Energy Asnæs Power Station, the plasterboard factory Gyproc A/S, the pharmaceutical plant Novo Nordisk A/S, the enzyme producer Novozymes A/S, the oil refinery Statoil A/S, RGS 90 A/S as well as the waste company Kara/Noveren I/S and Kalundborg Municipality.
Energy cooperation: 10 % of Denmark’s overall electricity/power consumption is produced in Kalundborg. The outcome is an annual CO2 emission of approximately 4.3 million tonnes – half of which stems from surplus heat in production. In the Industrial Symbiosis, StatoilHydro Refinery, Novo Nordisk, and Novozymes purchase a part of this surplus heat as process steam to run part of their production. This exchange provides for an annual CO2 reduction of approximately 240,000 tonnes of CO2.
Water cooperation: The overall water consumption of the industries within the Industrial Symbiosis is approximately 10 million m3 per year for their production. Almost one third, equal to 3 million m3, is
EIO Country Profile: Denmark 2011 16 recycled and re-used in the symbiosis, a fact that means fewer expenses for the industries and a substantially smaller pressure on the water supply systems.
By-product cooperation: The smoke originating from the production at Asnæs Power Station is de- sulphured before being let into the environment. The desulphurisation process is conducted using lime and recycled water, and this process creates a residual product, namely industrial gypsum. This gypsum, equal to approximately 100,000 tonnes on a yearly basis, is used by Gyproc to produce plasterboards for the construction industry. In the same way, the yeast (a residual product from Novo Nordisk’s production of insulin) is used as feed for approximately 800,000 pigs every year. Slurry, stemming from the municipal water treatment plants in Kalundborg, is exploited by RGS 90 as a nutrition agent in its soil cleaning processes. Finally, Novo Nordisk and Novozymes are producing an annual 150,000 tonnes of the fertilising product, NovoGro, from their water treatment.
The future: A new symbiosis partner is Inbicon’s bioethanol plant in Kalundborg, which takes in surplus heat from Asnæs Power Station so that the overall CO2 emissions are reduced by an extra 25,000 tonnes on a yearly basis. In the symbiosis partnership, efforts are being made to optimise the recycling of water so that up to 200,000 m3 of clean water, delivered as process steam, can be returned to Asnæs Power Station instead of being let into the sewers. Finally, the partners in the Symbiosis are examining the potential for using alternative energy sources in production whereas new partnerships have been established around the extraction of biogas from wastewater.
Source and further information: www.kalundborg.dk/Erhvervsliv/The_Green_Industrial_Municipality/Kalundborg_Industrial_Symbiosis.a spx
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4 | New trends and emerging eco-innovation markets
The eco-innovation areas described in part 3, together with the case studies of Danish companies and products, illustrate some of the more classic sectors, where Denmark traditionally has been strong in delivering solutions and products for dealing with environmental problems. The message is clear; innovation is a process that demands extensive resources, and it takes time to get from an idea to a successful product. Therefore, it is important that both the public and private sector are continuously making investments in R&D and demonstrating new areas for potential product innovations.
This demands an efficient framework for developing new market potentials, including well-targeted funding schemes and financial incentives. In this context, export of eco-innovation products is a key objective on the policy agenda of the new Government, which is planning to perform a review of the current framework, before developing its new “strategy for eco-innovation”. The review will include the following activities:
Identify where Denmark today has its global strengths in the form of clusters of knowledge, skills, and businesses, with the aim to shape a modern innovation policy, which connects global challenges with Danish core competencies.
Develop the first Danish Innovation Strategy in cooperation between the Ministers for higher education, research and innovation, business affairs and relevant sectorial ministers.
Analyse the existing innovation systems in order to assess whether the innovation capacity can be increased. (Regeringsgrundlaget, 2011)
There will also be a bigger focus on the foreign markets. The Government will increasingly invest in emerging countries such as Brazil, Russia, India, and especially China (BRIC countries), by a more aggressive marketing of Danish products. This includes sustainable technologies in areas like water purification, renewable energy, biotechnology, energy efficiency, and welfare and health technology. Other strong points such as food products, shipping, and infrastructure will also be central to exports. (Regeringsgrundlaget, 2011)
Renewable energy technologies will play a central role. The Governments objective is that all domestic energy supply should come from renewable energy by 2050, all electricity and heat supply should come from renewable energy in 2035, and coal should be phased out from Danish power plants and oil burners by 2030. The aim is that Denmark's emissions of greenhouse gases in 2020 is reduced by 40% compared to 1990 levels, and half of Denmark's traditional electricity consumption will come from wind by 2020. (Regeringsgrundlaget, 2011) This is expected to provide a boost for public investments in sectors like wind energy and biomass.
Finally, it is mentioned that Denmark should play a crucial role in the development of environmental technology in the agricultural sector and in food production (please see the example of the Wide-Span technology for agricultural production). In particular, biogas technology and second generation biofuels, such as bioethanol and technology for removing ammonia, should remain as important export areas. (Regeringsgrundlaget, 2011)
At present, a number of sectors and approaches are already demonstrating high potentials for future eco-innovations. Some of these are shipping, bio-technology, and industrial symbiosis.
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Shipping The shipping industry is one of the main contributors to global air pollution and GHG emissions. Shipping yearly accounts for four percent of the world’s GHG emissions (Ingenioeren, 2008, 1), and just the fleet of ships from the Danish container shipping company Maersk, yearly emits Sulfur Dioxide (SO2) equivalent to 12 times the total number of cars in the world. Their largest container ship alone emits SO2 equivalent to 50 million cars (Ingenioeren, 2008, 2). Shipping also has a large emission of NOx with an increasing pollution load, where NOx emissions from land based transportation in comparison is decreasing. Therefore, there is a huge potential for environmental gains in the shipping sector (Ingenioeren, 2009).
As a consequence, maritime environmental zones will be established from 2016, especially in near coastal areas, where the shipping industry must reduce their NOx emissions with 80%, in relation to the current ship load (Ingenioeren, 2009). In Denmark, the Government has worked for cleaner shipping through the IMO, the UN shipping organisation which, in 2008 approved new and more stringent regulations for pollution from shipping. The Danish Environmental Protection Agency (DEPA) and the Danish Ship owners’ Association have therefore entered into a partnership to promote cleaner shipping and to develop new environmental technologies to reduce pollution from shipping (Miljoestyrelsen, 2009, 2). This has led to concrete projects targeting the development of cleaner shipping fuels, high efficient ship engines, improved cleaning of combustions, and deployment of catalysts for ships (Ministry of Environment, 2009, 1). (Please see the example Green Ship of the Future)
The shipping area is assessed to have a large potential for eco-innovation in Denmark. The country is one of the biggest shipping nations in the world, with Maersk being the world’s largest container shipping company, and the country still hosts many suppliers and sub-suppliers of ship engine technology and equipment for treatment of combustions. It will be interesting to follow the work and outputs of the partnership between DEPA and the shipping industry, where financing will be made available for pilot- and demonstration projects (Ministry of Environment, 2010, 1). One of the areas already being addressed by the Partnership for Cleaner Shipping is "washing" of engine combustions. The company Aalborg Industries (Aalborg Industries, 2011) has developed what is called a "scrubber", which can clear the combustion gasses from the head engine of ships by washing the flue gasses with a mixture of sea water, fresh water, and sodium hydroxide, which reduces the emission of SO2 considerably. The first system was applied in 2009 on a freight carrier sailing between Gothenburg in Sweden and Immingham in England to demonstrate and test its efficiency (Shipowners, 2009).
Bio-technology Another area where Denmark for many years has been a strong market player is bio-technology. The country has several world players, such as Novo-Nordisk (Novo Nordisk, 2011), but also a large number of small and medium sized biotech enterprises specialising in research on products like medicine, food, health care equipment, packaging etc. The goal is to develop products based on natural and biological resources, without the use of harmful chemicals to the environment or humans. The Government vision is a market in 2020 without any products containing chemicals that have been proven to have extra harmful effects on health and environment. In particular, this concerns products like toys, cosmetics, jewellery, and food packaging (Ministry of Environment, 2009, 1).
Systemic Eco-innovation Solutions In line with the example of industrial symbioses in Kalundborg, the Government is supporting the continued developed of what is being referred to as “cradle to cradle” products, or “products of the future”. A working group consisting of 8 companies, such as Stena Technoworld and Grundfos, two research institutions, respectively Technical University of Denmark (DTU) and Copenhagen Business
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School (CBS), and a TSG partner FORCE Technology (FORCE) is composed in order to embrace and explore the major challenges of working with cradle to cradle principles. The objective is to create closed loop and waste-free models that does not impact the environment or societies, where products and processes generally are designed with a view that each small component of a product, when it is about to be disposed, either can be reused in new contexts or decomposed into biological nutrients for nature.
The principles have been addressed in Denmark and the EU for some years; the novelty of the concept lies in the vision to get the pieces to play together in a closed and neutral environment or a neutral and positive environmental cycle (cradle to cradle). It applies to the desire to minimize the content of the environmental and health hazardous substances, move up the 'waste hierarchy' (moving from landfilling towards incineration, recycling, or direct prevention), increased use of renewable energy, and reduced water consumption. To achieve this it is necessary to follow the flow of materials and resources during the entire life-cycle of the products, to get the different stakeholders involved at all levels of the supply- chain, in order to get them to cooperate on developing the designs, so each step in the chain can support or benefit from each other, e.g. recyclable waste products.
The overall aim is to create a scientifically sound methodological foundation for the development of cradle to cradle products in Denmark, including the establishment of a “cradle to cradle laboratory" to explore the possibilities and limitations, and to test and develop systemic solutions based on the four visions:
How do we close the material circuit?
How do we ensure the use of materials without negative impact on environment and health?
How do we optimize the use of renewable energy sources?
How can we ensure responsible consumption of water?
The current working group and project is funded until 2014. (MILUS, 2011)
"The Green Ship of the Future"
Green Ship of the Future is a unique cooperation in which companies across the Danish maritime industry join forces in order to develop strategies to reduce CO2 by 30 %, SOX by 90 %, NOX by 90 % and particulate emissions from both existing ships and new buildings. Participation is open for all Danish companies and organisations that meet the condition of being able to demonstrate a technology for reduction of air emissions within one of the four focus areas: machinery, propulsion, operation and logistics.
The challenge and objective of “The Green Ship of the Future” initiative is to reduce CO2 emissions by around 30 per cent and nitric and sulphuric oxides by 90 per cent. This initiative is using both familiar and new technologies. Green Ship of the Future is primarily focusing on the large, two-stroke engines of the type that are used in large ocean-going container ships and tankers.
The project was launched in 2008 by MAN Diesel & Turbo in conjunction with the A.P. Møller-Mærsk Group Danish shipping firm, Odense Steel Shipyard, and Aalborg Industries. The initiative’s primary objective is to highlight and develop new technologies aimed at achieving a significant reduction in marine emissions. The project now has some 25 partners, including shipping companies, their suppliers and several Danish universities.
In the summer of 2009, the initiative won the International Environmental Award from Sustainable Shipping for being the most environmentally friendly transport initiative. Sustainable Shipping is one of the leading organisations championing the sustainable use of our seas and oceans. Shipping is a more eco-friendly form of transport (in comparison with road and air transport), but with the Green Ship of the
EIO Country Profile: Denmark 2011 20
Future initiative, the partnership is making an extra effort to protect the climate and the environment.
Many elements are coming together in Green Ship of the Future: research, development, demonstration, innovation, education, training and dissemination of knowledge. Many fields of knowledge are involved such as: systems for recycling heat energy, optimization of the hull, propellers and rudders, optimization of the draft and speed for a given route and arrival time and monitoring the fouling of hulls and propellers. Engine technology is an especially essential factor for achieving the planned benefits.
Based on the information from www.greenship.org
Wide Span Technology: environmentally friendly production of agricultural products.
The development of the Wide Span Technology is a concept being designed and tested by three Danish partners, with support from the Danish Innovation Fund. The project partners are Brdr.Kjeldahl, a vegetable producer on the Island Samsoe; ASA-Lift A/S, international company developing, producing, and distributing vegetable harvesters; and Aarhus Universitet Det jordvidenskabelige fakultet, the departement of Arhus University engaged in Agriculture and Soil.
Wide Span is a technology for agricultural machines with spans of up to 12 meters. The objective is to limit the surface being impacted by pressure from heavy machinery, which leads to a number of environmental benefits, such as a reduction in emissions of nitrous oxide and a reduced consumption of pesticides and fertilizers. The background for demonstrating the Wide-Span technology, in order to achieve more efficient and environmentally friendly production of vegetables (and other agricultural products, is a growing world population that increases the need for efficient production of quality food. There is a real need to focus on effective, yet gentle exploitation of the Earth’s resources, as well as developing practices with less impact on the Climate. This particular project is focusing on new solutions for effective and gentle vegetable production, but in reality the Wide Span Technology can be applied on any agricultural crops that demands land resources.
The Wide Span is a technology that can be applied to machines with spans of up to 12 meters, making it possible to limit the driving on land and soil. The machine must be included in all parts of the cultivation process including seeding, soil preparation, fertilization, and harvesting. The technique implies the use of fixed traffic lanes (Controlled Traffic Farming) and GPS systems for the control of the tractor. It would ensure a controlled driving, where the pressure on the soil is in constant tracks for many years in a row.
A major environmental benefit would be a reduction between 20-50% of nitrous oxide, a potent greenhouse gas that is formed when nitrogen in the soil is exposed to anoxic conditions, which often happens in packed soil. Another environmental benefit would be a reduction in pesticide use since the Wide Span operating system can be enables to locate the pesticides, fertilizer, etc. exactly to the point where it can achieve the biggest effect.
For information about the project partners: Brdr. Kjeldahl: www.brdr-kjeldahl.dk; ASA-Lift A/S: www.asa-lift.com; Aarhus University: www.au.dk
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5 | Public policy in support of eco-innovation
Danish Eco-innovation at a Cross-road The strategies and frameworks for support of eco-innovation in Denmark are under transformation. The current policy measures, including technical support and public funding, are building on the work of the previous government (2000 – 2011), which delivered several policies and initiatives that supported national development of eco-innovation. These policies are still effective and reinforced by a number of public funding schemes.
In this period, the Government is responsible for developing two action plans for eco-efficient technology, which were designed and implemented by the Danish Environmental Protection Agency. The first plan from 2007 to 2009 focused on establishing a broader cooperation among important eco- innovation stakeholders, and on establishing an eco-innovation framework. This was done by launching 9 initiatives centred on eco-technologies. These areas included: Partnerships for innovation, export promotion, research and development, counselling, information, and capacity-building, promotion of eco- innovation inside EU, climate change and energy technologies, sustainable agriculture, water environment, and health related pollution. (Ecoinnovation.dk, 7) The first plan also provided a set of goals for the support of eco-innovation projects before year 2010, including ear-marked funding for projects in the 9 priority areas (Miljoestyrelsen, 2007).
In the second action plan for 2010-2011, the scope was narrowed to focus on three thematic topics, namely water, air, and waste, but with an additional priority on technologies that supported mitigation of climate change and eco-innovations with strong export potentials. These areas now seem to be continued under the new Government, where a concrete national innovation strategy is expected to be launched in 2012. (Regeringsgrundlaget, 2011)
In October 2011, Denmark had a change in government, which among others went to the polls on increasing investments in clean-tech and to speed up the implementation of renewable energy production. The basis for the new Government is a profile with strong focus on green growth and climate change. It will convert Denmark into a green economy by promoting renewable energy, better public transport, and fostering green growth companies (Regeringsgrundlaget, 2011). It is directly stated in their opening commitment that Denmark should be a society that uses both the human and natural resources in a sustainable and competitive way. The new government's growth initiatives and economic policies aim to go hand in hand with a long-term and extensive green transition.
A key area will be to develop better dialogue, partnerships, and broader cooperation among the public and private sector, as well as with universities and national research centres. This will build on the foundation already laid down in the existing framework for eco-innovation, which includes the establishment of a number of public-private partnerships. It was recognised in the current action plans for eco-innovation that to create good potentials for eco-innovation, a closer cooperation between companies, research institutions, and the public authorities had to be developed. Without cooperation or better synergies, the environmental regulation could end up being a bigger barrier than incentive, and therefore a number of partnerships were established to increase the focus on eco-innovation. This initiative is now expected to be enforced in the coming years, though the framework might change depending on the outcome of a planned review of the current setup. (Regeringsgrundlaget, 2011)
The current partnership model aims to gather stakeholders within the most important eco-innovation areas, so they in collaboration can identify and develop new strategies for eco-efficient technologies in Denmark.
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So far, eight partnerships have been initiated:
Partnership for water (Ecoinnovation.dk, 8);
Partnership for sustainable agriculture technologies (Ecoinnovation.dk, 9);
Partnership for mega wind mills (Ecoinnovation.dk, 10);
Partnership for bio fuels (Ecoinnovation.dk, 11);
Partnership for hydrogen and fuel cells (Ecoinnovation.dk, 12);
Partnership about ballast water (shipping) (Ecoinnovation.dk, 13);
Partnership for eco-technology in the water sector of India (Ecoinnovation.dk, 14), and
Partnership for cleaner shipping (Ecoinnovation.dk, 15)
Partnership for wastewater in Chongqing Province in China (Ecoinnovation.dk, 17)
The concept is that each of the individual partnerships develops its own secretariat, either hosted by private companies, or by business associations, or directly by line-ministries in some cases. An example of a partnership could be the one for mega wind mills. This group includes private companies like DONG Energy, Vestas Wind Systems, and Siemens Wind Power; it includes research centres like Risoe DTU, Danish Technical University, and Aalborg University, and the Danish Energy Agency as the government representative, just to illustrate the public-private partnership. Since 2006, this particular group has joined forces on establishing a new knowledge centre on wind mills, produced recommendations for pilot activities and new pilot tests, and identified areas for strategic research & development, followed by final demonstration projects. (Ecoinnovation.dk, 10)
Next to the partnerships, the Ministry of Environment already established a secretariat for eco-efficient technology in the Danish Environmental Protection Agency, which supports the coordination of eco- innovation in Denmark and handles tasks related to information-sharing, dialogue, and maintenance of knowledge networks. The secretariat is an important contact point for enterprises, entrepreneurs, researchers and others with inquiries about eco-efficient technology including questions on possible funding of test- and demonstration projects.
Down the Road, a Collected Eco-innovation Strategy With reference to the above review of the “old and new” direction for Eco-innovation, Denmark is not expected to turn 180 degrees in its strategy for Eco-innovation. New initiatives will build on the framework already in place, which is assessed in the scoreboard to be one of the strongest in Europe, but small changes will hopefully strengthen the existing tools and policy measures, and introduce new initiatives that will make it even easier to think and plan Green.
Already in 2006, the Environmental Protection Agency received the results of a study, which were initiated to uncover the future needs for a more strategic development of eco-innovation activities in Denmark. The objective was to get a better understanding of the conditions needed to foster eco- innovation, along with regular innovation policies and environmental regulation. In particular, it was identified that there was a gap (or lack of synergy) between daily environmental regulation and investments in eco-innovation. It was found that a stronger regulation does not necessarily increase the amount of eco-innovation activities, unless strategic support is available at the same time to connect innovation with environmental policy. On that background, the goal became to develop a clearer framework that could secure and invest in strengthened synergies between environmental policy and innovation. (Miljoestyrelsen, 2006)
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Today, the Government intends to perform a follow-up of this study, to review the efficiency of the current policies for Green Growth, including their financial support schemes, in order to define the first “national innovation strategy”. The signal is clear; activities across sectors and political visions have to be combined in a more coordinated effort. (Regeringsgrundlaget, 2011) Otherwise, the transition to a green economy will remain scattered between different Ministries and programmes.
Together with the review of the strategies, a number of new initiatives or enforcements are already in the pipeline. In 2012, the Government will keep the public funding for Research and Development above 1% of GDP. Furthermore, it will increase the financial reserve for R&D, with the aim to benefit Universities and public research in energy, together with identified strong points in Danish export. It should also benefit an increase in demonstration projects of environmental technologies. Another priority will be to support the cooperation between innovation, public research, and the private sector focusing on eco- innovation. (Ansvar og handling - oplæg til finanslov 2012)
The Government will strengthen the investments in the development of renewable energies. In renewable energy, especially within the areas of wind, water (Ocean), and bio mass, Denmark has for years been one of the global front runners, and this area is therefore expected to remain a top priority. The Government is soon expected to deliver a new agreement on the national energy production and consumption, with the objective to reduce national CO2 emissions with 40% in 2020 compared to 1990 levels. A new programme for demonstration projects of eco-innovation will also be established in 2012. (Ansvar og handling - oplæg til finanslov 2012)
Overall, the Government will ensure research, development and demonstration on green technology with more than one billion kroner to energy technology and green demonstration programmes, including strategic research in future environmental technology solutions for cleaner water, air, and soil. In addition, it is proposed to undertake a re-organisation of the Rural Development Programme for the strengthening of natural and environmental purposes. This is financed by reallocating resources within the programme for local districts. The environmental focus involves strengthening of wetland efforts, afforestation, ecology, nature conservation, and investment in environmental technology, including EU co-financing over two years. (Ansvar og handling - oplæg til finanslov 2012)
The latter is not directly linked to the national eco-innovations strategy, but in a bigger perspective, it is important to highlight the support for environmental activities at local and regional levels, where most entrepreneurs are operating their daily businesses. This is where new ideas and business are often created. In this context, it is relevant to include that all municipalities will be asked to prepare action plans for climate change adaptation. (Ansvar og handling - oplæg til finanslov 2012) Such plans will increase the focus on water conservation and local energy efficiency.
Eco-innovation policy measures Denmark generally has a sound environmental regulation, which is based on a comprehensive policy mix that deals with environmental problems from a life-cycle perspective. The basis is a fairly strict enforcement of up-to-date standards and emission levels for industry and agriculture, which is also reflected in the funding of eco-innovation technologies that focuses on pollution control and end-of-pipe solutions. As described earlier, Danish key areas are cleaner water management, reduction of air pollution, and recycling of waste. National policies also have a high focus on promoting 2nd and 3rd generation environmental technologies with concern for greater resource and energy efficiency in production processes, as well as more systemic solutions taking a holistic approach to changing production and consumption patterns. The latter is especially illustrated by the case of Kalundborg Municipality and the implementation of industrial symbioses. The wide range of funding of eco- innovation initiatives secures a broad development of technologies that both deals with environmental problems once they have occurred (end of pipe) and reduction at the source (resource efficiency).
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Figure 5.1 Policy measures addressing eco-innovations in Denmark
Focus of policy measures (tick if applies) Other Group of policy Generic Resource Energy Reduction Type of policy measure relevant measures focus on efficiency efficiency of areas (e.g. eco- improve improve emissions renewable innovation ment ment incl. CO2 energy, etc) Equity/business Venture capital funds X x X X x support Public guarantee funds Support for R&D in R&D funding x x x x x public sector and Collaborative grants industry R&D infrastructure x x x x Tax incentives for R&D and start-ups Fiscal measures Tax incentives for R&D personnel Tailored training courses for companies, x x x x x entrepreneurs Education, training Advise/consulting for start-ups, companies, x and mobility entrepreneurs Placement schemes for students Support for R&D workers recruitments SUPPLY SIDE FOCUS SIDE SUPPLY Competence centres, clusters, science- x x x technology parks Technology platforms and innovation Networks and x x x networks partnerships Foresight and common vision building x Market intelligence and other forms of x information sharing Regulations, targets, cap & trade schemes x Regulations and Performance standards, labelling, standards x certification “Green“ public procurement of goods and X services Public procurement
R&D procurement Pre-commercial procurement Advisory support for technology adopters x Technology Financial or fiscal support for technology Transfer adopters x x x x x (e.g. grants for purchasing new technology) Tax incentives for consumers (e.g. for
purchasing environmentally efficient x x x DEMAND SIDE FOCUS SIDE DEMAND products) Support of private Tax reductions for products and services x x demand (e.g. VAT reductions) Demand subsidies (e.g. eco-vouchers,
consumer subsidies) Awareness raising and information provision x
In Denmark a wide range of public Institutions and Ministries are involved in supporting eco-innovation, either through policy-making and standard settings, or direct funding schemes. Danish policy framework offers a range of policy measures aimed at supporting eco-innovations. Both, supply and demand side instruments have been introduced. Most of the policy measures have more generic eco-innovation focus, while a few target specific fields of energy, resources or carbon emission reduction.
The funding schemes are important tools to co-finance the development and demonstration of new and innovative technologies. A few examples of the most important funding schemes or support institutions include Danish Environmental Protection Agency funding scheme, Energiteknologisk Udviklings- og Demonstrationsprogram EUDP (Development and demonstration programme for energy technologies), The Danish Advanced Technology Foundation. “Hoejteknologifonden” (funding of higher technologies),
EIO Country Profile: Denmark 2011 25 the Business Innovation Fund, and “Vaekstfonden” (more details about these funding schemes are presented in Annex 1 under the supply side policy measures section of the table).
Eco-innovative capabilities of companies are supported through special training and advisory support programmes. Regional competences and research and industry partnership and are promoted via the regional technology centres initiatives.
A set of demand side policy measures relevant to eco-innovations is also well represented. It includes financial and fiscal incentives, awareness raising and information platforms, green public procurement, green labelling instruments.
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6 | Main findings
As described in chapter three and four, there has not been a big change in the Danish key eco- innovation areas since 2010, and likewise the challenges mostly remain the same. However, some of the challenges seem to be growing, rather than decreasing. Especially the Danish competitiveness and the Danish eco-innovation strategy are currently found in a vacuum, until the new Government effectively identifies the road ahead and implements their review and update of the current eco- innovation framework. The latter will hopefully be done in early 2012, but even a small delay, combined with financial restrictions due to the current crisis, could end up with a damaging effect, if the road plan is unspecified. The following will give a short summary of key drivers and barriers for Eco-innovation in Denmark:
6.1 Strengths and weaknesses of eco-innovation in Denmark
As illustrated in figure 2.1 Denmark have a lot of strengths in the field of eco-innovation with a solid all- round environmental profile, and a position as number three in the EU-27 eco-innovation scoreboard index. Denmark is being recognised as a country with a strong environmental policy, and most national citizens recognise the environment as an important topic on the political agenda, which was also high on the agenda in the recent election campaign. There is a general expectation in the Danish public that environmental policy and technology is leading in global markets, which creates pressure on the Governing authorities to keep environmental standards high. On one side, it is recognised that productions of environmental technology for many years have been important contributors to national exports and therefore important to continuing growth. On the other side, Denmark is a cultural landscape under heavy exploitation of human activities, such as agriculture, and therefore it quickly becomes evident when e.g. bio-diversity, water bodies, and coastal areas are suffering from low environmental standards. The “national environmental personality” combined with good environmental education in general therefore becomes a strong driver for development of eco-innovation, when companies and organisations are determining their profiles. This is also expressed in concrete measures with two direct action plans for eco-efficient technology since 2007 and the target of investing more than 3% of GDP in R&D (Dansk Erhverv, 2010).
Along with a strong environmental awareness there exist a strong domestic demand for eco-products, including biological goods and fair trade products. Danish companies are not only investing in eco- innovation for exports, but also for a growing internal market, where consumers are increasingly aware about the environmental impact of goods and services, and how hazardous chemicals can influence their health. Globally, the demand for greener products is also increasing, and all together it is an incentive for the strengthening of national eco-innovation policies (Ministry of Science, Technology, and Innovation, 2009). It should be noted that an increasing market share of eco-products naturally should replace the consumption of conventional products, if not, it would only lead to an increased consumption and offset the energy and material gains.
With the national action plans for eco-efficient technology 2007-2011, a foundation is already in place to support a comprehensive eco-innovation framework. Based on the study of future needs for eco- innovation in Denmark, which was conducted in 2006, the first steps were taken towards developing a National Innovation System (NIS). It was described that NIS would be a more indirect way to deal with environmental problems, but an approach that would be a more long-term and strategic way to achieve a higher environmental impact. By integrating environmental policy with more general policies on R&D, innovation, and market competition, the road plan for NIS have strengthened the institutional capacity
EIO Country Profile: Denmark 2011 27 building and delivery of environmental competences in productions and exports. It has challenged the more conventional way of dealing with environmental regulation, where the objective normally has been to achieve a direct environmental impact here and now. (Miljoestyrelsen, 2006) An illustration of the innovation system and the institutional capacity building is the partnership model described in part 5.
Figure 6.1 Strengths and Weaknesses of Denmark in promotion of eco-innovations Strengths Weaknesses
- Strong environmental profile: The national identity - Decreasing competitiveness and productivity: Denmark inherently demands a strong environmental profile of has experienced a great decrease in competitiveness, the Government, and it supports the global mainly due to increasing salaries, which has damaged recognition of Denmark as a driver in development productivity. Even neighbouring countries are much of environmental technologies. more competitive in terms of salaries. - High market demand: The increasing demand for - Fragmented policies and knowledge: The action plans greener products and services, especially in the for eco-innovation has not yet managed to create domestic market has stimulated companies to think effective collaboration across all line-ministries. This will green and to explore more resource-efficient be the target of a new national innovation strategy. alternatives. - Difficult to attract foreign labour: Denmark has one of the - Strong national innovation system: Denmark has highest tax pressures in the world, and combined with developed a clear action plan for eco-innovation, high living costs, it is difficult to attract high educated supported by multiple funding schemes, which labour, e.g. for Research and Development. supports research in eco-innovation products and makes it possible for even smaller players to test their pilot ideas.
Despite of a strong environmental profile and national eco-innovation plans, a number of weaknesses are challenging the third place on the eco-innovation scoreboard. Where the Danish Government and its public might have an ambitious understanding of their own environmental competences and economic growth potential, OECD is much more critical. In a forecast of the growth rates towards year 2025, based on the development of the economy in the recent years, Denmark is number 29 out of 30 countries (only better than Japan). The yearly GDP is only estimated to be 1% on average, which will be caused by a falling productivity and a decreasing work force. The increase in personal incomes has developed so fast in the last decade (only Greece had a higher increase) that it has damaged the competiveness of the Danish companies to an extent, where exports now are under pressure from other competitors. As a consequence, the Danish industry might face a situation, where they will have to reduce their investments in R&D, which could be a vicious circle that hampers the investment in future eco-innovation (Business.dk, 2010). In concrete numbers, the Government itself identifies that the five best OECD countries create 35% more value/hour worked than in Denmark. 10 years ago, this difference was only 10 percent (Proinvestor.dk, 2010).
The idea of a National Innovation System is to create better synergies between national policies, such as environmental regulation and innovation. However, despite action plans have now been launched to foster better collaboration among relevant stakeholders, and to put eco-innovation high on the political agenda there are still gaps in the national framework. If the Government does not manage to boost and create more effective research environments, clusters, or networks, companies and scientists will not be able to deliver new solutions and technologies for exports. Especially exports are crucial to Denmark when the majority of the Danish labour force is employed in the service sector. The partnerships described in part 5 are a response to this need, but these are still in an infant stage and they will need continued political support and financial funding to deliver successful results.
One of the most serious weaknesses concerns access to knowledge and the need for attracting well- educated labour and scientists (Ministry of Science, Technology, and Innovation, 2009). Despite high salaries, living costs are high in Denmark and taxation is among the highest in the world. Therefore, it can be difficult for the private sector to attract foreign labour and scientists to work in Denmark, which are important to maintain a competitive level of R&D. Especially in the field of natural sciences; Denmark
EIO Country Profile: Denmark 2011 28 is dependent on recruiting foreign researchers and engineers, if the productions and research should remain in Denmark and not be outsourced to other countries.
6.2 Opportunities and threats to eco-innovation in Denmark
Denmark has many opportunities to maintain a high level of eco-innovation, especially due to a good framework for development and demonstration of new eco-innovations. It supports the identification of new products and standards; in particular it gives small and medium sized companies the opportunity to test new designs and ideas, which would perhaps not have gotten off the desktop without access to financial support or technical partnerships. In this context, the high level of public and private investments in R&D, which has been above 3% of GDP for four years in a row, is crucial to guarantee investments in future technologies (despite of the financial crisis).
The national action plans for eco-innovation has helped to re-enforce the investment in resource-efficient technologies, but nevertheless there should still be room for improvement, especially when considering decreasing exports of Danish eco-innovation products. This is recognised by the new Government, who emphasises that there are too many examples where Denmark has not been effective in strengthening their global position. The Government will therefore work to increase innovation capacity in Denmark, which should be built on the first national innovation strategy. It will, among others, call for the education system to respond to the requirements for future labour, and that the universities and other knowledge institutions strengthen their participation in tomorrow's global innovation network. (Regeringsgrundlaget, 2011) This will be initiated by conducting a review of the current eco-innovation framework (as described in chapter 4), which should help define the national innovation strategy and increase collaboration among all relevant stakeholder, public as well as private. It is expected that a national innovation strategy will increase the efficiency of the investment in eco-innovation, and thereby improve the eco- innovation output, without necessarily increasing the budget.
A key area for improving exports of eco-innovation products, keeping in mind that the export potential is one of the main drivers in Denmark, are the emerging markets. Emerging markets will have a much higher demand for eco-innovation products in the coming years, as living standards are rising, as well as the environmental impacts due to increasing consumption, and they represent a great possibility to boost exports of greener technologies. In this context, the Government will develop specific and targeted strategies for the BRIC countries, which include all relevant ministries. It will increase its export promotion and prioritize work on the Danish embassies in promoting Danish products and seek to increase market shares. The small-and medium-sized enterprises will be in special focus. One tool will be to establish one-stop-shops, which make it easier for Danish companies to get an overview of procurement tasks in the BRIC countries, help to achieve export certificates, and to get general advice about export opportunities. This will also benefit eco-innovation products. (Regeringsgrundlaget, 2011)
Figure 6.2 Opportunities and Threats for eco-innovations in Denmark Opportunities Threats
- National Innovation Strategy: A national strategy will - Tax increases: The state budget for 2012 includes a help coordinate actions and funding schemes across number of tax increases, which has awoken a debate, line-ministries, and bring public and private partners on whether it will support the innovation in the closer together, so efficiency can be increased with a Industry, or actually make it more difficult for them to more direct intervention in key sectors. create sufficient surplus for investments in new technology. - Strong representation in emerging markets (especially Asia): Denmark has solid business networks in the - Decreasing funding for R&D: The financial crisis could emerging markets, and can draw on long-term become constrain to future investments in R&D, as all development work and collaboration in regions like public sectors are looking to save costs. This is also the case in many companies, who are looking to
EIO Country Profile: Denmark 2011 29
Asia, which is important to export promotions. counter-balance the problems of competitiveness. This could damage the number of eco-innovation - Recognition of eco-innovation as an export driver: patents in the future. Eco-innovation products represent a high share of Danish exports, and it remains a high political priority - Loss of companies to cheaper countries/markets: The to maintain this status. Exports of knowledge and combination of higher taxes and high salaries could technology are the only key to continued growth in force important companies to locate their productions Denmark, and it will keep eco-innovation a key area and R&D departments in foreign countries, which for the years to come. would undermine the long-term capacity-building in Denmark.
The emerging markets can also prove to be a threat to Danish companies’ eco-exports, and thereby undermine one of the country’s most important drivers for eco-innovation. For instance, China is already investing heavily in cleaner technologies, which is already demonstrated in the wind industry, where Chinese companies are taking over a great share of the global market in these years. Examples like this will lead to fierce competition in the coming years, and perhaps keep traditional players out of new markets.
The latter can to some extent be linked with decreasing competitiveness. Danish companies have lost 30% of their competitiveness over the last 15 years, due to increasing salaries, and combined with high taxes on resource consumption and pollution, it creates a threat that foreign companies can deliver the same services to a cheaper price. So far, viable businesses and well-educated employees have contributed to Denmark finding its way into the group of the world's richest countries. This status is in jeopardy, when emerging economies put pressure on Danish companies, not only because they are cheaper, but also because they are becoming increasingly more advanced than before. Even the neighbouring countries have increased their competitiveness in relation to Denmark, which is contributing to the situation that Denmark now has one of the lowest growth forecasts among OECD countries (Regeringsgrundlaget, 2011).
EIO Country Profile: Denmark 2011 30
References
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DMU, 2009: http://www2.dmu.dk/Pub/FR751_B.pdf
DMU, 2011: http://naturogmiljoe.dmu.dk/jord/11/
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Ecoinnovation.dk, 1: Perspektiver for den miljøteknologiske indsats; http://www.ecoinnovation.dk/Emneoversigt/Danske_cases_og_resultater/Perspektiver/
Ecoinnovation.dk, 2: http://www.ecoinnovation.dk/Emneoversigt/Danske_cases_og_resultater/Danske_styrkepositioner/
Ecoinnovation.dk, 7: http://www.ecoinnovation.dk/Handlingsplanen/
Ecoinnovation.dk, 8: http://www.ecoinnovation.dk/Emneoversigt/Partnerskaber_miljøteknologi/Partnerskab_vand/
Ecoinnovation.dk, 9: http://www.ecoinnovation.dk/Emneoversigt/Partnerskaber_miljøteknologi/Partnerskab_Indus/
Ecoinnovation.dk, 10: http://www.ecoinnovation.dk/Emneoversigt/Partnerskaber_miljøteknologi/Partnerskab_megavind/
Ecoinnovation.dk, 11: http://www.ecoinnovation.dk/Emneoversigt/Partnerskaber_miljøteknologi/Partnerskab_biobraendsler/
Ecoinnovation.dk, 12: http://www.ecoinnovation.dk/Emneoversigt/Partnerskaber_miljøteknologi/Partnerskab_brint/
EIO Country Profile: Denmark 2011 31
Ecoinnovation.dk, 13: http://www.ecoinnovation.dk/Emneoversigt/Partnerskaber_miljøteknologi/Partnerskab_ballastvand/
Ecoinnovation.dk, 14: http://www.ecoinnovation.dk/Emneoversigt/Partnerskaber_miljøteknologi/Partnerskab_miljoeteknologi_v andsektoren_Indien/
Ecoinnovation.dk, 15: http://www.ecoinnovation.dk/Emneoversigt/Partnerskaber_miljøteknologi/Partnerskabet_for_renere_skib sfart/
Ecoinnovation.dk, 16: http://www.ecoinnovation.dk/Emneoversigt/IsaerForVirksomheder/Finansiering_tilskud/Tilskudsordning_ miljoeteknologi_mst.htm
Eco-innovation.dk, 17: http://www.ecoinnovation.dk/Emneoversigt/Partnerskaber_milj%C3%B8teknologi/Partnerskab_for_spild evand_i_Chongqing_provinsen_i_Kina/
Economywatch, 2011: http://www.economywatch.com/economic-statistics/country/Denmark/
Eurostat, 2011: http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tsieb02 0
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Industrial Symbiosis, 2011: http://www.symbiosis.dk/industrial-symbiosis.aspx
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Ingenioeren, 2008, 2: http://ing.dk/artikel/85460-maersk-udleder-lige-saa-meget-svovldioxid-som-ni- milliarder-biler
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Kalundborg Municipality, 2010: http://www.kalundborg.dk/Erhvervsliv/The_Green_Industrial_Municipality/Kalundborg_Industrial_Symbio sis.aspx
Miljøstyrelsen, 2006: Det Miljøteknologiske Innovationssystem, Maj Munch Andersen & Mads Borup, Systems Analysis Department, Risø National Laboratory, Arbejdsrapport fra Miljøstyrelsen Nr. 33 2006: http://www2.mst.dk/udgiv/publikationer/2006/87-7052-211-1/pdf/87-7052-213-8.pdf
Miljoestyrelsen, 2007: http://www2.mst.dk/Udgiv/publikationer/2007/978-87-7052-511-4/pdf/978-87- 7052-512-1.pdf
Miljoestyrelsen, 2009, 1: Analyse af danske styrkepositioner inden for teknologier, der kan føre til substitution af kemikalier: http://www.mst.dk/Publikationer/Publikationer/2009/10/978-87-92548-75-7.htm
Miljoestyrelsen, 2009, 2: http://www.mst.dk/English/Focus_areas/EcoTechnologies/CleanAirForAll/
Miljøstyrelsen, 2011: http://www.mst.dk/Virksomhed_og_myndighed/Stoej/Vindmoeller/
MILUS, 2011: http://www.ft.dk/samling/20101/almdel/mpu/bilag/24/899199.pdf
Ministry of Environment, 2009, 1: NATUR OG MILJØ, Tema: Miljøteknologi, Danish Ministry of Environment: http://www2.mst.dk/udgiv/publikationer/2009/978-87-92617-38-5/pdf/978-87-92548-79- 5.pdf
EIO Country Profile: Denmark 2011 32
Ministry of Environment, 2009, 2: http://www.mim.dk/Nyheder/Pressemeddelelser/2009/20091029_IPPC.htm
Ministry of Environment, 2010, 1: Miljøteknologi – til gavn for miljø og vækst, Februar 2010 Ministry of Environment, Handlingsplan for fremme af miljøeffektiv teknologi 2010 – 2011: http://www.ecoinnovation.dk/NR/rdonlyres/B45AEB2E-4ABD-4A2A-9A8F- 6DFECC73C6BC/0/miljoeteknologi_print.pdf
Ministry of Science, Technology, and Innovation, 2009: Grøn Forskning - Status og perspektiver: Ministeriet for videnskab, teknologi og udvikling: http://vtu.dk/publikationer/2009/groen-forskning-status- og-perspektiver/groen-forskning-status-og-perspektiver.pdf
Ministry of Science, Technology, and Innovation, 2011: http://en.fi.dk/funding
NovoNordisk, 2011: http://novonordisk.com/
Proinvestor, 2010: http://www.proinvestor.com/finansnyhed/10265552/Danmarks-konkurrenceevne- tager-nyt-dyk---avis
Regeringsgrundlaget, 2011: http://www.stm.dk/Index/mainstart.asp/publikationer/Et_Danmark_der_staar_sammen_11/Regeringsgru ndlag_okt_2011.pdf
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Vaekstfonden, 2011: http://www.vaekstfonden.dk/OmVaekstfonden.aspx
Vaekstforum, 2009: DANMARK STYRKET UD AF KRISEN, Statsministeriet, Vækstforum, http://www.stm.dk/multimedia/Danmark_styrket_ud_af_krisen_resume.pdf
Other Background References: http://www.mst.dk/Virksomhed_og_myndighed/Kemikalier/ http://www.mst.dk/Virksomhed_og_myndighed/Affald/ http://www.mst.dk/Virksomhed_og_myndighed/Industri/ http://www.mst.dk/Virksomhed_og_myndighed/Landbrug/ http://www.mst.dk/Virksomhed_og_myndighed/Luft/ http://www.mst.dk/Virksomhed_og_myndighed/Miljoeindsats_paa_tvaers/ http://www.mst.dk/English/Focus_areas/EcoTechnologies/default.htm
EIO Country Profile: Denmark 2011 33
ANNEX 1. Policy measures addressing eco-innovations in Denmark
Focus of policy measure (tick if relevant) Specific measure Other Group of policy Please provide reference to or brief summary of specific measures (national, Generic Resource Energy Reduction Type of policy measure relevant measures regional) focus on efficiency efficiency of areas (e.g. add cells if necessary eco- improve improve emissions renewable innovation ment ment incl. CO2 energy, etc) - Danish Venture Capital and Private Equity Association. DVCA is the trade x organization for a wide range of investors in Denmark and focuses on Denmark to position itself even more as an attractive investment destination - nationally and globally. http://www.dvca.dk/ - “Vaekstfonden” a national funding scheme named that has a high focus on x x x x x investing in companies, who put innovation and environment high on their Venture capital funds agenda. The companies co-financed by Vaekstfonden have since 2001 generated an extra turnover of €3.36b and 27.000 thousand extra jobs. http://www.vf.dk/ - Nordic Innovation Centre. Analysis and overview of Nordic venture capital and innovation. http://www.nordicinnovation.org/Global/_Publications/Reports/2011/2010 Equity/business 12_StatisticsCrossBorderVentureCapital_report.pdf support
- Energiteknologisk Udviklings- og Demonstrationsprogram EUDP
(Development and demonstration programme for energy technologies): EUDP is funded under the action plan to help organizations to get an overview of national and international funding schemes. EUDP concentrate on three steps. 1) Research of technologies that are 4-7 years away from the market, 2) Development of projects where a technology is ready to Public guarantee funds become a concrete product, 1-4 years away from the market, and 3)
SUPPLY SIDE FOCUS SIDE SUPPLY Concrete demonstration projects of technologies that are 0-2 years away from the market (Teknologiudvikling, 2011). The role of EUDP is not to disperse funding themselves but to help organisations identify potential sources for financing of eco-innovation projects. http://www.teknologiudvikling.dk/ - DEPA / Eco-Innovation: In connection with the action plans for eco-efficient x x x x technology, the secretariat for eco-innovation under the Danish Environmental Protection Agency has its own funding scheme, where organizations can apply for co-financing of R&D, pilots, and concrete Support for R&D demonstrations of promising eco-technologies in the field of water, air, and in public sector R&D funding waste, or international projects with focus on water technologies. The and industry budget for 2010-2011 is approximately €12.1m. www.ecoinnovation.dk - The Danish Advanced Technology Foundation: The technology foundation is x x x x funded by the Danish government. The general objective is to enhance growth and strengthen employment by supporting strategic and advanced EIO Country Profile: Denmark 2011 34
technological priorities within the fields of research and innovation. Up to date, the Foundation has invested in 114 advanced Technology Projects and Platforms with a total budget of approximately €400m including finance from companies and research institutions. http://en.fi.dk/funding - “Hoejteknologifonden” (funding of higher technologies): The Danish Agency x x x x x for Science, Technology, and Innovation administrates several Call for Proposals to promote innovation for the Danish Council for Independent Research, the Danish Council for Strategic Research, the Danish Council for Technology and Innovation, and the Danish Research Training Committee, under the auspices of the Danish Research Coordination Committee. One specific call is addressing technology and production sciences (FTP), including eco-efficient technologies. In 2010, the Danish Council for Independent research activities has a financial framework totalling €184m; FTPs share of these funds totals approximately €36m in 2010. http://hoejteknologifonden.dk/ - Strategic Growth Technologies, with special focus on Nanotechnology, x Biotechnology and IT and Communications Technology. Grants for strategic research in new technologies that can drive economic development and for solving significant social problems. http://www.fi.dk/tilskud/forsknings-og- innovationsprogrammer/dsf-strategiske-vaekstteknologier - Agriculture and Food Production: Environmental Technology Scheme x x x x supports projects related to investments in new green technologies on farms. The aim is to reduce environmental and climate impact of the
primary agricultural production. http://www.lf.dk/Aktuelt/Nyheder/2011/Juli/Nu_kan_der_soges_om_tilsku d_til_miljoteknologi.aspx - Collaborative grants
- Business Innovation Fund: The Business Innovation Fund is an official x government initiative established in autumn 2009 under the Danish Ministry of Economic and Business Affairs. The Business Innovation Fund provides financial support to large, cross-functional innovation projects within green business and welfare. The support will mainly be granted to projects based on user-driven innovation. The aim is to develop innovative commercial products and services that can meet the increasing global demand for green solutions and welfare as well as generate growth and R&D infrastructure & employment in Denmark. About €100m has been allocated to the fund for services the period 2010-2012. http://www.fornyelsesfonden.dk/ - The Programme Commission on Transport and Infrastructure at the Danish x Council for Strategic Research launched in spring 2009 a research programme on sustainable transport and infrastructure. Beneficiaries can be public research organisations as well as private sector companies, but there are specified requirements for funding of large enterprises (maximum 50% of project expenses) and SMEs (maximum 60% of project expenses). http://www.fi.dk/tilskud/opslag-stoettemuligheder/2010/strategisk-
EIO Country Profile: Denmark 2011 35
forskning-2010-baeredygtig-transport-og-infrastruktur - Danish Water research Platform. The platform was identifies needs, x opportunities and challenges for Danish research, innovation and
technology development in the water sector. http://www.forskningsplatformen-vand.dk/ - Tax incentives for R&D and
start-ups
- 25 % Tax Scheme: Taxation of the Salaries of Well-paid Foreigners and Foreign Researchers. In 1992 a special taxation scheme was introduced for researchers and key employees who take up residence in Denmark for a Fiscal measures limited period of time. Effective as from 13 May 2000 there has been a revision of that scheme. The rules are contained in section 48 E of the Tax incentives for R&D Danish Act on Taxation at the Source. The Scheme implies that well-paid personnel employees and researchers recruited abroad have access, subject to a number of conditions, to choose - for a period of not more than 36 months - taxation at the rate of 25% of the remuneration with no deductions - instead of the normal income tax. http://www.taxindenmark.com/article.34.html - Innovation Management. The course gives an insight into the principles and methods used to implement both incremental and radical changes that are necessary for your organization's innovation efforts create value. http://www.teknologisk.dk/uddannelser/k31005 - Innovation Counselling. The Government is launching (Nov. 2011) a new x x x x x Tailored training courses for initiative, where companies can get a check-up and support in identifying companies, entrepreneurs their eco-innovation potential. 300 companies with up to 50 employees, with services and products benefitting the environment, will receive an offer containing private counselling on how their products can be further improved, and to identify their market potentials. http://www.ebst.dk/nyheder/341881 - Proof of Concept. The policy measure aims to strengthen the further x Education, development and documentation of inventions made by researchers in training and public research institutions. The funding shall be used to allow these mobility researchers to concentrate on the further development of their inventions Advise/consulting for start- and to reduce the education and research burden for a period. ups, companies, http://www.fi.dk/viden-og-politik/anvendelse-af-viden/kommercialisering- entrepreneurs og-ivaerksaetteri/teknologioverfoersel/proof-of-concept - Support for Entrepreneurs with Innovative Ideas. How to start-up a new x business idea. http://www.startvaekst.dk/forside/0/2 - Growth Wizard. Shows the way to public offers of grants, loans, advice and x much more for Danish businesses. http://www.vaekstguiden.dk/ - Industrial PhD initiative. The Industrial PhD Programme addresses postgraduates qualified to complete a PhD project, and universities and Placement schemes for enterprises competent enough to support an Industrial PhD project for a students three-year period. Enterprises and universities can apply for subsidies made available by the Ministry of Science, Technology and Innovation to cover
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part of their expenses in connection with participation in Industrial PhD projects. The PhD candidate is employed by a private enterprise during the project period and the time is spent equally at the enterprise and the university. http://www.fi.dk/tilskud/forsknings-og- innovationsprogrammer/hoejtuddannede-i-virksomheder/erhvervsphd Support for R&D workers - recruitments - Danish Environmental Protection Agency – Eco-innovation information platform/network, www.ecoinnovation.dk - Centres of Excellence. The Centres of Excellence programme is an initiative of the Danish National Research Foundation. The Danish National Research Foundation (DNRF) is an independent foundation that works to support Competence centres, Danish basic research regardless of subject. The activities of the Foundation clusters, science-technology are regulated by law, and the purpose of the Foundation is to support the parks development of unique Danish research. It is the position of the board that the best Danish basic research environments should have a possibility for extra support when and if expertise, creativity and the right constellation of people is present in combination. http://www.tekniq.dk/Medlemsraadgivning/El-%20og%20vvs- uddannelserne/Laerlingeuddannelserne/CentreOfExcellence.aspx - Regional technology centres. The main objective of the measure is to x x x x x strengthen knowledge based growth and development in the regions outside of the larger cities. Regional Technology Centres focus on regional competencies and act as intermediaries between regional research and SMEs. Experiences from the former Regional Growth Centres (DK 13) initiative guide the establishment of these centres. The regional Technology Networks and Centres aim at strengthening the collaboration between the regional partnerships business-environment and relevant knowledge-institutions in relation to
research, innovation and technology development. The collaboration is based on business strength positions within a limited geographic area outside the capitol area. The Government has earmarked 8.5 million Euro for 13 Regional Technology Centres during the coming four years: seven of the centres are new, while the remaining six centres build on existing Regional Growth Centres. http://www.fi.dk/tilskud/bevillingsoversigter/2006/regionale- teknologicentre-forsknings-og-innovationsstyr/ - The aim of Innovation Consortiums is to strengthen co-operation between x companies, public research institutions and technological service to develop new generic technology platforms for the coming 5-10 years product and service development in Denmark. Enterprises must contribute with 50% of Technology platforms and the funding. Typically a consortium has a total budget of €2.5m - €5.5m and innovation networks lasts 3-4 years, http://www.fi.dk/tilskud/forsknings-og- innovationsprogrammer/samspil-mellem-erhverv-og- vidensinstitution/innovationskonsortier - SPIR - Strategic Platforms for Innovation and Research. The Danish Council x x x x x for Strategic Research and the Danish Council for Technology and
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Innovation have decided to carry out a joint pilot project of coordinated funding aimed at establishing strategic research and innovation platforms within energy and food. The object of the SPIR initiative is to establish a Danish model for strengthening the links between research and innovation and to create a partnering model in which private-sector enterprises will be more extensively involved in both the planning and performance of research and innovation. http://www.fi.dk/raad-og-udvalg/raadet-for- teknologi-og-innovation - Research voucher for SMEs. The policy measure aims at an increased R&D x x x x x intensity of SMEs by fostering collaboration with public research institutions, improving knowledge transfer and by strengthening quality and relevance of public R&D. Projects funded by a research voucher have to be collaborative R&D projects of both SMEs and research institutions. The partners have to sign an agreement and the projects cannot last longer than 24 months. Project participants have to be at least one SME (less than 250 employees and €50m maximum annual turnover) and at least one research institution. Research institutions can be Danish universities, R&D intensive Danish hospitals, GTS-institutes or other research institutions. Foreign research institutions can participate if they have at least the same level as the equivalent Danish institutions. http://en.fi.dk/innovation/collaboration- between-research-and-industry/innovation-vouchers - Portal for Technology. The GTS institutes offer knowledge, technology and x consultancy, co-operation on technological and market-related innovation, testing, optimisation, quality assurance, certifications and benchmarking - all of which are intended to contribute to enhancing the international competitiveness of the business sector and benefit society in general. http://www.teknologiportalen.dk/forside. - Pre-project grant for the 7th EU framework programme. This policy x x x x measure is a continuation of the support for projects under EUFP6. The main goal is to increase the number of applying and participating Danish SMEs in the EUFP7. Danish enterprises do not use the possibilities under EUFPs effectively enough. http://www.fi.dk/tilskud/opslag- stoettemuligheder/2010/opslag-til-eu-forprojekter-for-smaa-og- mellemstore-virksomheder-eus-7-rammeprogram- Foresight and common 1/?searchterm=forprojekter vision building - Innovation Packages (international cooperation). It is offered to small and x medium sized Danish companies wishing to seek new knowledge, technology or business partners in leading foreign innovation environments. Innovation Package offered by the Danish Innovation Centres providing tailored advice to the individual company. Innovation Package includes 25 hours of counselling in a selected market and provides 50% subsidy to do so. There is a limit of grants to four innovation packages per market. http://www.virk.dk/myndigheder/stat/TC/Innovationspakke Market intelligence and - Regional Innovation Agents. Experts from 9 regional centres offer other forms of information innovation checks to SMEs of the regions in question. sharing http://www.innovationstjek.dk/
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- Overview of Environmental Laws in DK. The Danish Environmental Protection Agency provides an overview of laws and regulations connected
to the environmental, including areas like production and consumption. http://www.mst.dk/Lovstof/DK-lovgivning/ - Innovation Act. It aims to strengthen and promote development, innovation x and research in the entire food sector by supporting projects with novelty. Among other things, the aim is to ensure production of healthy and quality food, strengthen food industry's competitiveness and improve consumers' Regulations, targets, cap & ability to obtain relevant and reliable information on product characteristics trade schemes and the conditions under which products are produced. http://www.fvm.dk/innovationsloven.aspx?ID=15492 - Danish Industries. The association of Danish Industries, which supports promotion of Danish exports, identification of trade, and counselling to Danish companies. http://di.dk/Pages/Forsiden.aspx Regulations and - Eco-label Denmark. Management of the official eco-labels in Denmark, e.g. x standards “blomsten” and “svanen”, with information to producers and consumers on how to get or react to labels, as well as an overview of labelled products. http://www.ecolabel.dk/ - Fees and labels on recyclable materials. Management and overview of fees Performance standards, and labels on products that needs to be recycles, such as plastic and glass labelling, certification materials. http://www.dansk-retursystem.dk/content/dk
- Danish Standards. Advice and consultancy in the use of Danish and x international standards. Based on your company's profile and needs, Danish Standards can be an active partner throughout the process - from analysis to implementation and follow-up. http://www.ds.dk/da- DK/Sider/default.aspx - The public procurement in Denmark amounts to 160 billion Dkr/year and X private enterprises for even greater amounts. This large shopping muscle
DEMAND SIDE FOCUS SIDE DEMAND can help to promote the production and marketing of environmentally less “Green“ public procurement harmful products throughout the product chain. More information about of goods and services strategic plans can be found on the website of DEPA. http://www.mst.dk/Virksomhed_og_myndighed/Gron_strategi/baeredygtig Public e_indkoeb/fokus_paa_baeredygtige_indkoeb/ procurement R&D procurement
Pre-commercial
procurement
- Act on technology transfer on Public Research Institutions. The act allows for universities and sectorial research institutes to establish a limited company responsible for the transfer of knowledge/technology to the Technology Advisory support for private sector. These companies shall support commercialisation of Transfer technology adopters intellectual property rights and they shall be co-owners of science parks, incubators and spin-off companies. http://ku.dk/regel/5/5806.html - Universities play an important role in adaptation of new technologies x
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through research, identification, and testing. A few links on the area are: http://fi.ku.dk/,http://www.au.dk/strategi/2008- 2012/kerneaktiviteter/raadgivning_og_videnudveksling/, http://www.dtu.dk/subsites/ClimateDTU/Consultancy_Partnership.aspx, http://dkuni.dk/omdkuni/Udvalg-og-arbejdsgrupper/InnoTech-gruppen, http://www.regionh.dk/menu/Forskning/Raadgivning_til_forskere/ - Food processing. Support for technologies improving the processing of x x Financial or fiscal support for food, including quality and efficiency. technology adopters http://www.vaekstguiden.dk/forarbejdning/0/3 (e.g. grants for purchasing - Green Innovation. Support of projects involving greener technologies. x new technology) http://www.fornyelsesfonden.dk/tildelinginnovationgroen - Greening Private Houses. Danish houses may now be more environmentally x x x Tax incentives for consumers and climate friendly thanks to “BoligJobordning”, which makes it possible to (e.g. for purchasing implement green roofs solar panels, creating combo heaters, geothermal environmentally efficient heat, air to water heating and photovoltaic - all with a tax deduction on products) expenses for wages. http://www.bolig-job-ordning.dk/ Tax reductions for products - Green tax on Automobiles. Higher tax is applied on polluting cars. x x and services (e.g. VAT http://www.skm.dk/tal_statistik/satser_og_beloeb/183.html reductions) Demand subsidies (e.g. eco- vouchers, consumer subsidies)
Support of - Information on environmental laws and standards for public citizens: x private demand “borger”, or in English “citizen”, is the national website where the public can seek information on laws and regulations, and adjust their own public obligations. This website includes information on environmental awareness. https://www.borger.dk/Emner/miljoe-og-energi/Sider/default.aspx - Fund for employee-driven innovation in the public sector. Funding for x Awareness raising and concept development and demonstration projects in public institutions in information provision service areas closely related to the citizens. http://www.ebst.dk/brugerdreveninnovation.dk - Better Innovation. A comprehensive approach to the development of new x technological services for the benefit of Danish industry and Danish society, which is concluded by the Council for Technology and Innovation and the 9 Approved Technological Service Institutes for the period 2010-2012. http://www.bedreinnovation.dk/
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About the Eco-Innovation Observatory (EIO)
The Eco-Innovation Observatory (EIO) is a 3-year initiative financed by the European Commission’s Directorate-General for the Environment from the Competitiveness and Innovation framework Programme (CIP). The Observatory is developing an integrated information source and a series of analyses on eco-innovation trends and markets, targeting business, innovation service providers, policy makers as well as researchers and analysts. The EIO directly informs two major EU initiatives: the Environmental Technologies Action Plan (ETAP) and Europe INNOVA.
Visit our website and register to get access to more information and to discuss all EIO reports, briefs and databases. www.eco-innovation.eu
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