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Eco-Innovation in Greece

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Eco-Innovation in Greece Eco-innovation in Greece 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: Greece Author: Andreas Mitsios (Deloitte Développement Durable) Coordinator of the work package: Technopolis Group Belgium 2 Acknowledgments This document was prepared with significant support from: • Elina Lugbull (Deloitte Sustainability); • Giannis Vikas, Dimitris Managoudis. 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 .............................................................................................................. 1 Introduction .......................................................................................................... 3 1 | Eco-innovation performance ............................................................... 5 2 | Selected circular economy and eco-innovation areas and new trends .. 9 3 | Barriers and drivers to circular economy and eco-innovation in Greece 12 4 | Policy landscape in Greece ................................................................ 12 REFERENCES ........................................................................................................ 17 ANNEX: Policy strategies and instruments ........................................................... 19 1 Summary Climate change and intensive ecosystems pollution is likely to have strong impact on the Greek environment due to its island nature. For this reason, acting for eco-innovation has a significant importance. Environmental policy in Greece focuses on the promotion of renewable energies and energy efficiency measures that can promote eco-innovation. The country benefits from its significant natural capital in renewable energies (solar, wind, tidal), growth in green and alternative tourism and innovation in agriculture and the food industry. Despite the economic crisis, by the end of 2019, the installed capacity of photovoltaics reached 2,828 MWp which covered 7.1% of the electricity consumption. Nevertheless, the uptake of renewable energy has stagnated in recent years. In terms of eco-innovation performance, in 2018 Greece continues to rank low among the EU28 countries with a score of 75 (on an EU average of 100). However, Greece is getting closer to the EU average in terms of eco-innovation performance as it is only seven positions behind the EU average. The funding of research activities in the country depends heavily on EU funds. The Operational Programme on Competitiveness, Entrepreneurship and Innovation under the new National Strategic Reference Framework (2004-2020) allocates EUR 28.8 million on the promotion of innovative technologies for environmental protection and resource efficiency in the areas of waste management, water management, soil contamination and air pollution. The poor performance on technological innovation is also demonstrated by the low number of patent applications. In addition, the small size of Greek companies acts as a deterrent to further developing and commercialising innovations. However, it is noted that Greek startups, due to high availability of funding from abroad, tend to apply for European or international patents. The applications of these companies may not be recorded as “Greek companies’ applications”. The policy framework to support innovation is expected to improve significantly through the Action Plan for the Implementation of the National Strategy for Research, Technological Development and Innovation for the period 2015-2021, which includes the promotion of specific activities in relation to eco-innovation. An integrated policy framework to promote circular economy does not exist. The first circular economy dialogue forum took place in April 2019 to gather businesses, SMEs, researchers, social entrepreneurs, etc. to promote circular business models and innovation. This indicates that the country has initiated an implementation of circular economy in a more holistic manner. With reference to digitalisation, as an enabler of eco-innovation, Greece has a very poor performance amongst the EU countries as it ranks 27th out of the 28 EU Member States (including the UK) in the European Commission Digital Economy and society Index (DESI) 2020 (European Commission, 2020). Nevertheless, the government has set digitalisation as one of its strategic priorities, as a new Ministry of Digital Governance was established in 2019. The COVID-19 pandemic triggered several digital initiatives to address the challenges and barriers of this health crisis and this has accelerated the pace of digital transformation. 2 Introduction The Environmental Performance Index (EPI) 2020 ranks Greece as a strong performer, 25th overall in its global rankings (EPI, 2020). According to the EPI, the country has an average performance in the areas of air quality, fish stocks and GHG emissions intensity. Major challenges, such as air emissions from transport and electricity power stations, overexploitation of its water resources, degradation of its coastal zones, loss of biodiversity in terrestrial and marine ecosystems (MINERV 2018). The overexploitation of groundwater resources occurs mainly in the region of Thessaly. In that region there is a high intensity of energy and water use for agricultural irrigation. In addition, many groundwater irrigation systems operate illegally and thus, they are not recorded. The status of surface water is good, both in terms of quantity and quality. The quality of the vast majority of bathing waters in the country was assessed as excellent (95.7%) (EEA 2019). The GHG emissions continue a decreasing trend that started in 2008. Specifically, the emissions decreased from 134.63 Mt CO2eq in 2008 to 98.69 Mt CO2eq in 2015 (EEA, 2017). Nonetheless, these were mainly due to the effects of the economic crisis and not the result of ambitious climate policies. The country's carbon intensity level is still high compared to other Member States (European Commission, 2019). According to Eurostat, the share of renewable energy of the country's gross final consumption has stabilised at around 15%. Biomass and renewable wastes account for the largest part of this consumption (44% of renewables). Greece needs to increase its efforts to reach the target of 20% of energy from renewable sources by 2020 as stipulated by European Commission's Directive on Renewable Energy. With this in mind, Greece continues to be one of the most successful countries worldwide in the use of solar thermal energy (mostly water heaters). In addition, currently the Greek government is preparing a Master Plan for the gradual closure of lignite-burning energy plants in the area of Megalopolis and the region of Western Macedonia where such plants are located. As a result of the Waste Management Plan the pressures from generation and treatment of waste have been reduced. Nevertheless, the closure of illegal landfills – as well as illegal metal foundries – remains a key challenge for the country (European Commission, 2017) even if the operation of such illegal sites is gradually reducing. In addition, there is a lack of adequate facilities to effectively manage all the hazardous waste the country produces. Some progress has been achieved on waste recycling, mainly through the expansion of the extended producer’s responsibility schemes (European Commission, 2019). Nevertheless, Greece is at risk of not meeting the 2020 municipal waste recycling target of 50%. At the same time, the recent economic crisis did not allow significant amelioration of environmental protection, and it put heavy pressure on the resources devoted to R&D. Malpractices by local authorities, limited enforcement of laws by national authorities and public unawareness of benefits from innovation have deteriorated due to the crisis. In the past two years, the economy started to show a significant improvement, but it is unknown if this will continue, due to the Covid-19 pandemic. The Greek economy is dominated by the tertiary sector. Services are dominated by tourism, shipping and the public sector. Compared to the EU average, trade and agriculture are
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