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Eco-Innovation in Slovakia

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Eco-Innovation in Slovakia Eco-innovation in Slovakia EIO Country Profile 2018-2019 Eco-Innovation Observatory The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation and circular economy 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 and ec.europa.eu/environment/ecoap 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. 1 Eco-Innovation Observatory Country Profile 2018-2019: Slovakia Author: Boglárka Ivanegová (SUSTO – Sustainability Tools) Coordinator of the work package: Technopolis Group Belgium 1 Acknowledgments This document was prepared with the support from: • Ministry of Environment of the Slovak Republic • Ministry of Economy of the Slovak Republic • Slovak Business Agency • Slovak Centre for Research and Technical Information • Institute for Circular Economy 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 Union. A number of companies are presented as illustrative examples of eco-innovation in this report. The EIO does not endorse these companies and is not an exhaustive source of information on innovation at the company level. This brief is available for download from https://ec.europa.eu/environment/ecoap/country_profiles_en 1 Table of contents Summary .............................................................................................................. 2 Introduction .......................................................................................................... 3 1 | Eco-innovation performance ............................................................... 4 2 | Selected circular economy and eco-innovation areas and new trends .. 8 3 | Barriers and drivers to circular economy and eco-innovation in Slovakia 11 4 | Policy landscape in Slovakia .............................................................. 14 REFERENCES ........................................................................................................ 19 ANNEX: Policy strategies and instruments ........................................................... 24 List of abbreviations: EC European Commission Eco-IS Eco-Innovation Scoreboard EEA European Environment Agency MŽP SR Ministry of Environment of the Slovak Republic MŠVVaŠ SR Ministry of Education, Science, Research and Sports of the Slovak Republic MPVR SR Ministry of Agriculture and Rural Development of Slovakia MZVaEU SR Ministry of Foreign and European Affairs of the Slovak Republic OECD Organization for Economic Cooperation and Development NKÚ SR Highest Controlling Office of the Slovak Republic SAŽP Slovak Environment Agency 1 Summary The Slovak Republic, with an overall score of 62, ranks 23rd amongst the then 28 EU Member States on the 2019 Eco-Innovation Scoreboard (Eco-IS). Slovakia’s position declined when compared to the last reporting period (when it was on the 20th place), and the country now performs under the EU average in all the five components of the Eco-IS. Similarly to the last two reporting periods, the weakest components of the Eco-IS are eco- innovation inputs and eco-innovation outputs, reflecting the persistently low share of both public and private support for research and development activities, as well as the fragmented eco-innovation institutional framework. The share of eco-innovation related patents and publications remain low, and so is media coverage of eco-innovation and circular economy topics. This is followed by low socio-economic outcomes, highlighting the low share in the export of products from eco-innovative industries and low added value of environmental protection and resource management activities. On the bright side, with regards to resource efficiency outcomes, the water productivity of Slovakia continues to grow and is now three times the EU average. Slovakia performs best in the component of eco-innovation activities, thanks to a high number of ISO 14001 certifications. Nevertheless, the number of certifications decreased when compared with previous years. Multiple barriers impair Slovakia’s eco-innovation performance, including the continuously weak research and development system or the overall quality of the Slovak business environment. Companies lack reliable information, support, and motivation to adopt eco- innovations. Educational objectives do not align with the need to transition to a climate- neutral society. The potential of digitization for sustainable development should receive more attention. However, multiple new platforms for information and best practice sharing are emerging. The evolving start-up ecosystem and projects of regional collaboration are driving the eco- innovation agenda forward. The circular economy policy landscape is getting more robust, and the transition to resource-efficient, low-carbon, and circular economy is now considered imperative for both the country’s 2030 Strategy of Environmental policy until 2030 (2019), as well as within the program statement of the new government. The overall improvement of Slovakia’s lagging eco-innovation performance will depend on the effective implementation of these ambitions. 2 Introduction Waste management, air quality as well as habitat and species protection pose the main environmental challenges in Slovakia. Despite the introduction of multiple important measures in the area of waste management over the last couple of years, Slovakia is at risk of not meeting its 2020 municipal waste recycling target of 50%, with reaching only a 38,1% recycling rate in 2018. At the same time, the landfilling rate of municipal waste remains one of the highest in the EU at 53,8% in 2018 (MŽP SR& SAŽP, 2019). In 2019, the industry remained the most significant economic activity in Slovakia, accounting for 24,5% of gross value added, which was the fourth-highest amongst EU member states (Eurostat, 2020a). In 2018, the industry was also the largest waste producer out of all economic activities, followed by transport and storage (MŽP SR& SAŽP, 2019). The circularity rate of Slovakia, explained as the share of material resources coming from recycled products and recovered materials, was 5,1% both in 2010 and 2017, which is half of the EU(27) average of 11,2 % (Eurostat, 2020b & 2020c). As the 2018 Report on the State of the Environment informs (MŽP SR & SAŽP, 2019), multiple challenges persist for various constituents of the environment, for example, with regards to the quality of surface and groundwater bodies. In 2018, only 39% of all the municipalities had the public sewage system built, serving only 68,4% of the population. The health condition of forests is considered worse than the European average. In 2018, 72,1% of all the forests were commercial forests, used primarily for timber production (MPRV SR, 2019). Forests with the unnatural composition are much more vulnerable to climate influences as well as biotic factors, such as bark beetles and woodworms. Furthermore, 38,5% of agricultural lands are potentially threatened by water erosion, and 29% are influenced by soil compaction. Particulate matter pollution has been one of the most significant problems, causing severe public health concerns. In 2016, approximately 4 800 premature deaths could be attributable to PM2.5 exposure (EEA, 2019). Slovakia also belongs to the EU countries with the highest PM10 daily values. The primary sources are solid fuel burning within households for heating. In fact, according to the Ministry of Environment, approximately 120 000 households use boilers that are more than 30 years old (MŽP SR, 2019a). Another major air polluter is the transport sector, which calls for significant improvements in transport system efficiency, including multi-modality, and improved deployment of low- and zero-emission vehicles (EC, 2020a). The share of renewable energy on gross energy final consumption was 11,9% in 2018, while in 2016 it was 12% (Eurostat, 2020d). It is questionable if the national goal to achieve 14% share of renewable energy will be reached. The research, development, and innovation, including eco-innovation, environment remains suboptimal, with competencies being distributed among multiple government bodies without comprehensive coordination. Both public and private investment into this sector are one of the lowest within the EU. 3 1 | Eco-innovation performance The analysis in this section is based on the EU 28 Eco-innovation Index (EcoI Index) for the year 2019. The Eco-I Index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. EcoI Index is a composite index that is based on 16 indicators which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as resource-efficiency outcomes
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