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Eco-Innovation and Digitalisation Case Studies, Environmental and Policy Lessons from EU Member States for the EU Green Deal and the Circular

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Eco-Innovation and Digitalisation Case Studies, Environmental and Policy Lessons from EU Member States for the EU Green Deal and the Circular Eco-Innovation and Digitalisation Case studies, environmental and policy lessons from EU Member States for the EU Green Deal and the Circular Economy EIO Biennial report 2020 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 follows: “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 https://ec.europa.eu/environment/ecoap/about-eco-innovation/policies-matters https://ec.europa.eu/environment/ecoap/country_profiles_en 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. Eco-Innovation Observatory Biennial report 2020 Authors: Bettina Bahn-Walkowiak, Chiara Magrini, Holger Berg, Burcu Gözet, Meghan Beck-O’Brien and Tahere Arjomandi (Wuppertal Institute) Asel Doranova, Margaux Le Gallou, Susanna Gionfra (Technopolis Group) Venice Graf, Mary Ann Kong (In Extenso) Nino Jordan, Michał Miedziński, Raimund Bleischwitz (University College London) Coordinator of the work package: Wuppertal Institute Acknowledgments We would like to express our gratitude to the country experts for their work effort in the preparation of the country reports and the collection of good practice examples and policies for the biennial report. In addition, we would like to recognise the contributions of the experts from the national authorities and ministries for their feedback and helpful comments on the EIO country reports. The authors would especially like to thank Ms Malgorzata Kicia for her valuable comments and the review of this report. 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 report is available for download from https://ec.europa.eu/environment/ecoap/about-eco-innovation/policies-matters Table of Contents List of Figures ..................................................................................................................... 3 List of Tables ...................................................................................................................... 3 List of Boxes ....................................................................................................................... 3 Preface: The series of EIO reports ....................................................................................... 4 Executive summary ............................................................................................................ 6 Digital eco-innovation as a means to reach a circular economy in Europe ................................................ 6 Eco-innovation performance of countries .................................................................................................. 6 Key findings ................................................................................................................................................ 7 Policy messages .......................................................................................................................................... 8 1 Introduction – Digital eco-innovation for the circular economy .................................... 9 1.1 What is digital eco-innovation? ...................................................................................................... 10 1.2 What is the potential of digitalisation to foster a circular economy transition? ............................ 13 1.3 The relations of the digital circular economy to biodiversity ......................................................... 16 2 Eco-Innovation Index and trends ................................................................................ 18 2.1 Key trends of the EU Eco-Innovation Index 2019 ........................................................................... 18 2.2 European eco-innovation performance from a global perspective ................................................ 22 2.3 Policy implications .......................................................................................................................... 23 3 Digitalisation within Europe in the context of Circular Economy and Green Deal ........ 24 3.1 Trends: Some spotlights ................................................................................................................. 24 3.2 Digital potentials addressed in EU policies ..................................................................................... 26 3.2.1 European Green Deal .............................................................................................................. 27 3.2.2 Circular Economy Action Plan 2020 ......................................................................................... 34 3.2.3 Biodiversity Strategy 2030 ....................................................................................................... 40 3.2.4 Zero Pollution ambition ........................................................................................................... 44 3.3 Implications for the European Green Deal Debate ........................................................................ 46 4 Policies and instruments at a national level: EU Member States ................................. 50 4.1 Digitalisation as a key component of national strategies for eco-innovation and/or circular economy ......................................................................................................................................... 50 4.2 Policy instruments promoting digitalisation towards achieving specific eco-innovation, circular economy, or sustainability objectives ............................................................................................ 52 4.3 Conclusions ..................................................................................................................................... 54 1 5 Possible adverse effects of the digital transformation ................................................ 55 5.1 Direct ecological impact of digitalisation ....................................................................................... 55 5.2 Indirect ecological effects ............................................................................................................... 57 5.3 Potential health impacts ................................................................................................................. 58 5.4 Adverse economic and social effects and systemic risks ................................................................ 59 6 Covid-19 pandemic implications for digitalisation ...................................................... 60 7 Key findings and policy messages ............................................................................... 62 7.1 Brief summary ................................................................................................................................ 62 7.2 Main policy messages and conclusions .......................................................................................... 62 REFERENCES ..................................................................................................................... 64 ANNEX ......................................................................................................................... 69 2 List of Figures Figure 1: Material flows in Europe, 2017, billion tonnes per year (Gt/year); Source: (Eurostat, 2020) ....... 10 Figure 2: Broadband subscriptions per 100 people; Source: (Roser et al., 2015) ........................................ 11 Figure 3: Share of population using the internet; Source: (Ritchie, 2017) ................................................... 12 Figure 4: Recipe for Circular Economy Transformation (by digital approaches); Source: (Deloitte, 2018). 14 Figure 5: Circular economy strategies and their potential; Source: (de Wit et al., 2018), p. 29. ................. 15 Figure 6: Eco-Innovation Index 2019 ............................................................................................................ 19 Figure 7: Scores in the five components of the Eco-Innovation Index 2019, by country ............................. 20 Figure 8: Global Eco-Innovation Index 2019 ................................................................................................. 22 Figure 9: Digital Adoption Index in European Countries, in 2014 and 2016. Source: (The World Bank, 2016). .............................................................................................................................................................. 25 Figure 10: Adoption of digital technologies
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