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Wuppertal Institute for and Technology Climate, Environment and Energy Onment and Energy 06

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Wuppertal Institute for Climate Environment and Energy 2005/

uppertal Institute for Climate, Envir W 6 /0 2005

Wuppertal Institute for Climate, Environment and Energy Annual Report

Döppersberg 19 42103 Wuppertal Phone: +49-(0)2 02/24 92-0 ISBN 3-929944-71-5

Fax: +49-(0)2 02/24 92-108 ISBN 978-3-929944-71-6 Annual Report science centre north rhine-Westphalia Wuppertal Institute for Climate, Environment and Energy

Annual Report 2005/2006 Contents

Welcome 5

WI-Impressionen 6

Increasing Resource Efficiency: Green Rhetoric or Paradigm Shift in Environmental and Economic Policy? 9

Research Group 1: Future Energy and Mobility Structures 27

Research Group 2: © Wuppertal Institute for Climate, Environment and Energy Energy, Transport and Climate Policy 37 at the Science Centre North Rhine-Westphalia

Annual Report 2005/2006 Research Group 3: Material Flows and Resource Management 45 Editor: Wuppertal Institute Co-ordination: Dorle Riechert, Oscar Reutter Research Group 4: Photos: Visualization Lab Wuppertal Institute and other Translation: Meredith Dale, Nina Hausmann, Sandra Lustig, Mary Tyler Sustainable Production and Consumption 53 (Tradukas GbR ); Simone Heinen, Julia Schlüns (Wuppertal Institute) Pictures/graphs: Sabine Michaelis Cross Cutting Projects 65 Layout: Dorothea Frinker Print: Ley + Wiegandt, Wuppertal, Office 71 at Revolve Silk, 100% Recycling-Paper

Wuppertal Institute for Climate, Environment and Energy The Ph.D-programme 75 at the Science Centre North Rhine-Westphalia Döppersberg 19, 42103 Wuppertal Centre on Sustainable Consumption and Production (CSCP) 78 PO Box 10 04 80, 42004 Wuppertal

Phone: +49 202 24 92 0 Economic Development 85 Telefax: +49 202 24 92 108 E-Mail (general): [email protected] New Publications 105 E-Mail (individual staff members): [email protected] Homepage: http://www.wupperinst.org The WI in brief 107

Wuppertal 2006

ISBN 3-929944-71-5 ISBN 978-3-929944-71-6 Dear reader,

Welcome at the Wuppertal Institute!

We are pleased to see so much interest in our work, and with this annual report we would like to present you with a short overview on the focal points of our work from summer 2005 until summer 2006. Admittedly, these are only extracts — for more information please visit our homepage http://www.wupperinst.org. We have thoroughly revised this homepage and changed its design. As a result, not only can you now obtain a better over- view and more background information on our Institute and its ideas, but also will you have easier access to us and our publications. To keep yourself up-to-date you can subscribe to our E-Mail-Newsletter “wi-news” on our homepage. Every two weeks the “wi-news” inform you and approximately 8.000 other subscribers worldwide about events, new publications and sci- entific findings of the Wuppertal Institute. Our research lives from exchange. We see ourselves as mediators between politics, economy, science and the public. Therefore, we appreci- ate suggestions and comments on our work and our publications. We are especially pleased that last year many interested visitors again found their way to Wuppertal. We feel very comfortable in this city with its commit- ted citizenry. Hence, it is by no accident that the “UNEP/ Wuppertal Insti- tute Collaborating Centre on Sustainable Consumption and Production” (CSCP), co-founded by the Wuppertal Institute and the Environmental Programme of the United Nations (UNEP), has its seat in Wuppertal. You will find photographs of the opening ceremony with the former UNEP- director Professor Dr. Klaus Töpfer as well as a contribution on the work plan of the CSCP.

Enjoy the reading and use this opportunity to visit us in the internet!

Dorle Riechert Public Relations WI-Impressions  

Increasing Resource Efficiency: Green Rhetoric or Paradigm Shift in Environmental and Economic Policy ?

During the last few years, calls for an increase in resource, material and energy efficiency, indeed for a veritable “efficiency revolution”, have made their way into politicians’s speeches and official government policies. At the same time, the material and physical view derived from environmental ­policy that material and energy flows that harm the environment (e.g. waste, sewage, exhausts and emissions, heat loss, transport) should be “avoided” is increasingly linked with monetary operational and macroeconomic analyses that reveal the prospect of considerable cost-cutting potential and scope for innovation. Increasingly, the enhancement of material and energy efficiency in processes, buildings, vehicles and products is seen as part of an integrated whole and, by linking ecological, economic and social dimensions of sustainable production and consumption, is placed in both a technical and a socioeconomic context. The subject is examined both at the level of individual businesses and inter-company value chains and of regions, national economies and international interconnections. Are these new developments in research and politics merely “green” rhetoric?

The growing overlap between environmental and economic policy Ecologists have been pointing out for years that the per capita rates of energy and material consumption in OECD countries cannot be trans- ferred to the growing majority of the world’s population in developing and newly industrialized countries. Due to the limits of finite resources and the absorptive capacity of sinks such as oceans and the atmosphere, two to three planet earths would be needed for developing countries and fast-growing, populous newly industrialized countries such as China and India to adopt the resource-intensive production and consumption patterns of rich coun-

 European Environment Agency EEA, (ed.), Sustainable Use and Management of Natural Resources, EEA Report No. 9/2005 (Luxembourg, 2005); and Aachener Stiftung Kathy Beys (ed.): Ressourcenproduktivität als Chance: Ein langfristiges Konjunkturprogramm für Deutschland (Norderstedt: Books on Demand, 2005). 10 Annual Report 2005/2006 Increasing Resource Efficiency 11 tries. The consequence of this — that welfare must be completely decou- “Schweden will sich bis 2020 vom Öl befreien” [Sweden plans to liberate pled from resource consumption — has been formulated as a normative itself from oil by 2020] (Spiegel Online, 9 February 2006), “Anleger pochen postulate, and examined for fundamental feasibility by means of examples auf Klimaschutz” [Investors clamour for climate protection] (Frankfurter and scenario calculations. This has certainly contributed towards some Rundschau, 9 February 2006) and “Kursfeuerwerk bei deutschen Solar­ rethinking and towards a large number of good practice examples, though aktien” [Sky-rocketing prices for German solar shares] (ARD TV news). not yet to mainstreaming of environmental policy as a forward-looking Apparently, these are no longer merely ecologically motivated “wake-up economic policy. calls” but primarily inherently economic signals and driving forces. Increas- Generally speaking, the actual primacy of the economy in the era of glo- ing energy and resource productivity, decoupling economic growth from balization of international capitalism makes it difficult to gain due recogni- consumption of natural resources, and consumption and production pat- tion for the ecological and social dimensions of sustainability. In the past, terns using fewer resources are topics that have moved from normative dis- ecology was likely to secure an official hearing and effective implementation cussion to the centre of hard economic realities. The Federation of Ger- only if its economic advantageousness (increased growth and competitive- man Industries (BDI) has set up a working party on raw material security. ness) had been proven beyond doubt. In future, the opposite may be true. Countries such as China and India with billion-plus populations and high In the long term, the economy will only have any prospects if its ecological economic growth rates appreciate that managing with fewer resources is an advantageousness is ensured (i.e. in this context drastically reduced energy essential prerequisite not only for limiting the ominous consumption of and material consumption). That would impact radically on the interplay natural capital but first and foremost for preserving growth and develop- of environmental and economic policy at all levels. In this respect, it would ment opportunities. “Leap frogging” by these “lead markets” to high tech- be no exaggeration to say that a paradigm shift is on its way. nologies that use fewer resources (e.g. to especially efficient motor vehicles There is an accumulation of headlines and book titles such as Resource and energy technologies) may hold a hitherto unsuspected momentum. Wars (Michael T. Klare), Winning the Oil Endgame (Amory Lovins), Yet also in rich countries of the North, such as Germany, increasing resource efficiency may be the key to ecological modernization, to reduc- ing costs and improving competitiveness, to innovation leaps and “green”  For example, generalizing the resource-intensive lifestyle in the United States to nine growth that is less undermining of the natural fundaments of life. Ecologi- billion people would mean “… around 4.5 billion cars (now: 655 million), a need for cal crises and the economic market pressures of continually rising resource approx. 80 million tonnes of oil per day (now: 10 million tonnes) and global resource prices will sooner or later force patterns of consumption and production extraction of around 293,000 million tonnes per year (now: 55,000 million)”. See A. using fewer resources in both North and South. Behrens, et al., “Eine Materialinputsteuer zur Senkung des Ressourcenverbrauchs — und Nonetheless, it is doubtful whether ecology (e.g. climate protection) can Schaffung von Arbeitsplätzen?”, in Aachener Stiftung Kathy Beys (ed.), Ressourcen- produktivität (see note 1), pp. 49–62. wait for the long-drawn-out autonomous self-regulatory processes of mar-  Friedrich Schmidt-Bleek, Das MIPS-Konzept: Weniger Naturverbrauch — mehr Lebens­ kets and rising raw material prices. The example of the market for oil and qualität durch Faktor 10 (, 2000). Friedrich Schmidt-Bleek, The International gas highlights the need for a forward-looking economic and security policy Factor 10 Club’s Reports of 1999, Graue Reihe series (: Institut Arbeit und before manifest economic and geopolitical crises occur and that this should Technik, 2000). set a more decisive course towards reduced dependence on energy imports.  Ernst U. von Weizsäcker, Amory B. Lovins and L. HunterLovins, Faktor Vier: Doppelter Wohlstand — halbierter Naturverbrauch (Munich, 1996).  Amory B. Lovins and Peter Hennicke, Voller Energie — Vision: Die globale Faktor-Vier- Strategie für Klimaschutz und Atomausstieg ( am Main, 1999). The most recent  Martin Jänicke, National Environmental Policies: A Comparative Study of Capacity Build- example of the fundamental feasibility of complete decoupling of energy consumption ing (Berlin: Springer, 1997). and economic growth is the “2000 Watt Society” concept that was examined by the major  The draft 11th five-year plan (2006–10) adopted by the Chinese National People’s Swiss research institutes. See Eberhard Jochem (ed.), Steps towards a Sustainable Devel- Congress on 5 March 2006 includes the assumption that the economy will grow by 7.5% opment: A White Book for R&D of Energy-Efficiency Technology (Zurich: Centre for per annum while energy intensity (the ratio of energy consumption to GDP) will be Energy Policy and Economics, 2004). reduced by 20% during the five-year period. See www.gov.cn. “Report on the Work of the  Ernst von Weizsäcker characterized the twenty-first century as the “Age of the Environ- Government (2006)”, March 14, 2006. ment”. Reduced to its socioeconomic and technical content, this gives rise to the new  See also Peter Hennicke and Nikolaus Supersberger (eds), Krisenfaktor Öl: Abrüsten mit paradigm “maximum resource efficiency”. neuer Energie (Munich: oekom, forthcoming autumn 2006). 12 Annual Report 2005/2006 Increasing Resource Efficiency 13

Therefore we argue that without political interventions and new, intelligent guidelines, stimuli and incentive structures at all political levels, first-mover and other competitive advantages for the economy will be gambled away and Russian roulette will be played with the environment. For the signs of a paradigm shift, not only in environmental policy, are unambiguous.10 With the prospect of looming shortages, intensified world market competition, increased dependence on imports, escalating prices for energy and other raw materials (e.g. coke, copper, steel, platinum) and the incipient internalization of previously externalized costs (e.g. by means of emissions trading and financial analysts’ ratings in the case of climate change), the bounds of the resource-intensive type of growth that is still prevalent have been reached and, in some cases, crossed.11 Never before was the overlap between economic and innovation policy on the one hand and proactive environmental and climate policy on the other as obvious and as relevant as it is now, and its significance will increase considerably in the future. On 28 September 2005 a colloquium called “Worldpower: Energy — Challenge for ­Democracy and Prosperity” took place in the rooms of Deutsche Messe AG Hannover. The One expression of this growing overlap is new and unaccustomed coali- event focused on the possible consequences of the prevailing energy policy on security pol- tions of interests and alliances (e.g. between companies, non-government icy worldwide. In cooperation with the Deutsche Messe AG, the German Association of the organizations and scientists). Part of this is the increasing realization that, Club of Rome and the Wuppertal Institute hosted lectures given by the following personali- in a globalized economic and cultural world, environmental and economic ties: Prof. Dr. Peter Hennicke, Dr. Friedemann Müller (German Institute for International policy must be conceived globally but must often be implemented locally and Security Affairs), former brigadier Dieter Farwick (Editor in Chief at the World or regionally. It goes without saying that this applies to climate protection Security Network), Dr. Heinrich Kraft (Deputy Head of the Policy Planning Staff, Federal and adjustment to climate change, but it also applies to implementation Foreign Office), Prof. Dr. Mohssen Massarrat (University of Osnabrück), PD Dr. Henner Fürtig (German Orient Institute) and Dr. Franz Trieb (German Aerospace Center). Also of more sustainable patterns of consumption and production (Marrakech presented were discussions with Prof. Dr. Utz Claassen (Chairman of the Board of EnBW), Process). Dr. Hubertus Barth (Institute of the German Economy), Prof. Dr. Rolf Kreibich (Director of There is therefore an increasing need to create environmental policy the Institute for Futures Studies and Technology Assessment) and Michael Müller (Member concepts that supply positive socioeconomic models (more efficient, more of the German Bundestag). Hans-Herbert Holzamer, “Süddeutsche Zeitung”, moderated the economical, better, fairer, more environmentally friendly) rather than being event. Sepp D. Heckmann (Chairman of the Board of Deutsche Messe AG) und Uwe Möller couched in mainly “defensive” terms, as happened so often in the past. In (Secretary General of the Club of Rome) welcomed the guests. economic terms, environmental policy can rely more on “coalitions of win- Photo below from left to right: H.-H. Holzamer, H. Bardt, U. Claassen, D. Attig, R. Kreibich. Photos: Erhardt Heidenreich, by courtesy of Messe Hannover ners” than was previously the case, especially when, despite state-acceler- ated structural transformation, it also takes into account diversification strategies and alternative fields of business for the “losers”, makes allowance for transitional periods and is supported by aids to adjustment. In future, modern environmental policy will therefore also be innovation policy and ecologically compatible economic policy, because it will be able to support

10 Klaus Töpfer in an interview in Der Tagesspiegel, “We are facing a total reappraisal of environmental policy”, 9 March 2006. 11 Dennis Meadows, Jorgen Randers and Donella Meadows, Limits to Growth: The 30-Year Global Update (White River Junction VT: Chelsea Green Publishing, 2004). 14 Annual Report 2005/2006 Increasing Resource Efficiency 15 a new type of technical and social progress that conserves nature and cre- cooling systems14 or by institutionalizing a target-oriented sustainable type ates work. of competition along the lines of the Japanese Top Runner Programme (for Still, one thing that distinguishes environmental policy from economic all durable energy-consuming appliances and vehicles).15 Another possibil- policy is its longer time horizon and its role as an early-warning system ity is regional market stimuli for climate protection technologies and jobs and catalytic accelerator of structural transformation when precautionary in the building industry, as the ProKlima fund in Hannover, for instance, action beyond autonomous market incentives is required. That is because has shown in exemplary fashion.16 Yet the most important change must for an ambitious energy, climate and resource policy time is perhaps the take place in thinking. Business, politics and civil society must learn that scarcest resource. An almost inestimable multitude of “good examples” at in future “less will be more” and “differently better” in a very fundamental all levels (projects, policies, instruments, alliances and initiatives) show that sense. The close link between efficiency revolution and renewability (e.g. sustainable innovations are also economically successful. However, unsus- in the form of green energy technology, industrial raw materials and fuels) tainable trends still predominate (e.g. in the case of climate change and of could become the central guiding idea for future products, processes, appli- growing dependence on oil and natural gas imports) and all over the world ances, buildings and vehicles. it remains an open question whether the present, frequently over-timid, For this, a new government framework and guidelines are indispensable courses set toward sustainability are in time to prevent an unsustainable in the energy sector, for example. Continuing disproportionate use of non- accumulation of risks. renewable sources of energy will make the world increasingly susceptible to Therefore a central task for applied sustainability research is to iden- crises and, ultimately, poorer. As long as it is considerably more advanta- tify obstacles to innovation and diffusion and to develop key goals, indi- geous for the consumer to save energy by means of efficiency technologies cators, conducive conditions, policy mixes and incentive structures for an than to buy kilowatt-hours from the energy provider, industry also needs a accelerated structural transformation of ecological and socioeconomic framework that enables it to earn more from avoiding energy use by using modernization. In doing so, researchers need to work out which actors with high-efficiency technologies than from the profligate sale of energy. Meth- their specific interests and scope for action can make which contributions ods and instruments for achieving this reversal in incentive structure, even towards sustainable development and which advantages they can gain from in liberalized markets, are known and have been implemented in some it. An example of this is the German Renewable Energy Act, which (regard- countries, including in some states of the US, in Britain and in Denmark.17 less of whether it is developed sensibly in future) has overcome existing The energy mix of the future — i.e. a sustainable energy service econ- barriers to market access and opened up an attractive future market for a omy — must amount to more than just a diversification of energy offering. host of new power generation technologies and actors. This success story of The leaden weight (the “dead costs”) of an unnecessary use of energy and a market development encouraged by a national government and of accel- material that does not help to create value but instead represents permanent erated ecological modernization in the era of globalization can be contin- “loss creation” (Professor Schaltegger) burdens the environment, economy ued, for example by developing profitable potential for material efficiency and society in both North and South. Ecological modernization and inno- through a programme to stimulate material efficiency,12 by goal-oriented vation policy should therefore always aim for an “economy that avoids development of the market for energy efficiency technologies with the help of an energy efficiency fund,13 by introducing a bonus or certification system for the accelerated market launch of combined power and heating/ 14 Manfred Fischedick, Joachim Nitsch et al., Langfristszenarien für eine nachhaltige Energienutzung in Deutschland, study commissioned by the German Federal Environ- ment Agency (Wuppertal and , 2002). 12 Arthur D. Little AdL, Fraunhofer Institute for Systems and Innovation Research ISI and 15 http://www.eccj.or.jp/summary/local0303/eng/05-03.html Wuppertal Institute (ed.), Studie zur Konzeption eines Programms für die Steigerung der 16 proKlima GmbH, Jahresbericht 2004 (Hannover, 2005); http://www.proklima-hannover. Materialeffizienz in mittelständischen Unternehmen, for the German Federal Ministry of de/dateien/pdfs/pK-Jahresbericht_2004.pdf. Business and Labour (Wuppertal et al., 2005). http://www.materialeffizienz.de/download/ 17 See also Stefan Thomas, “Aktivitäten der Energiewirtschaft zur Förderung der Energieef- Abschlussbericht.pdf; Aachener Stiftung Kathy Beys (ed.), Ressourcenproduktivität (see fizienz auf der Nachfrageseite in liberalisierten Strom- und Gasmärkten europäischer note 1). Staaten: Kriteriengestützter Vergleich der politischen Rahmenbedingungen”, PhD disser- 13 Stefan Thomas, et al., Konzept für einen EnergieSparFonds in Deutschland, final report tation submitted to the faculty of political and social sciences of the Free University of commissioned by the Hans Boeckler Foundation (Wuppertal: Wuppertal Institute, 2005). Berlin, Otto Suhr Institute for Political Science, May 2006. 16 Annual Report 2005/2006 Increasing Resource Efficiency 17 unnecessary consumption of energy and material”.18 It is not only energy These national figures will no doubt materialize and be concretized at and raw material prices rising across the board and increasingly burden- regional and local level within the system limits of a regional economy. For some oil and gas bills that suggest this, but also the fact that, with a grow- this, “external relations” with both the national and, depending on foreign ing world population, sustainable development in the South and qualitative trade and payment interconnections, the international market are impor- growth in the North are unimaginable in the long term without a sharp tant. It is generally true of regional economies, too, that rising prices for increase in resource productivity and without a complete decoupling of energy and raw materials impact directly on the costs borne by local com- welfare from resource consumption. Meanwhile, international comparative panies, private households and public budgets. A rising world oil price (and, studies undertaken by the Wuppertal Institute show, for instance, that while in the wake of it, gas price) may be caused by a crisis in the Middle East, but an increase in energy and resource productivity in Germany is certainly it also burdens the local energy calculation while simultaneously inducing ascertainable, it is countered by an increasing consumption of resources new fields of business, e.g. for local producers of efficiency technologies by German businesses abroad. In the course of globalization it is therefore and renewables as alternatives to oil and gas. The more a region’s economy increasingly important to dovetail the development of national policies and social structure has previously been marked by energy and material with scientific knowledge in such a way as to largely avoid shifting problems imports, the more important relief from the burden of “dead” energy and to other regions, above all to developing countries.19 material costs is to its competitiveness and quality as a business location. Rough estimates suggest that avoidable use of material and energy cur- Rising energy and material prices mean greater dependency on imports rently burdens the German economy with “dead costs” totalling around and a greater outflow of regional capital and purchasing power elsewhere. Euro180,000 million per annum.20 The technologically feasible energy A provident local government and economic development policy should savings potential alone accounts for nearly 45 percent of primary energy pay no less attention to such long-term shifts in the structure and price of consumption, or approximately Euro 70,000 million per annum.21 Tap- energy and material imports than, for instance, to analysing demographic ping this enormous energy saving and modernization potential by means change and its socioeconomic implications. of strategic efficiency programmes will not only reduce the national ­economy’s material costs and energy bill, but will also replace raw material New tasks for application-oriented sustainability research imports and the outflow of capital abroad by new fields of business and purchasing power at home, enhance competitiveness and therefore, given Now, hardly anyone questions whether society needs sustainable develop- a supportive framework, result in a considerable positive net employment ment. In future, the central focus will be on implementation and on its impact on the labour market. An intelligently designed nationwide mate- socioeconomic prerequisites and interconnections. The question now, rial efficiency programme could not only serve to revive the economy and therefore, is how to shape sustainable development as a long-term process the labour market but also to lessen resource consumption, induce positive of change, globally, nationally and regionally. As regards regional Agenda employment effects and improve the financial situation of public budg- 21 processes, this implies a need not only to reflect on global interconnec- ets.22 tions but also on economic driving forces (i.e. including specifically the local market opportunities for small and medium-sized enterprises) and on questions of how to better combine an increase in resource efficiency 18 Peter Hennicke and Michael Müller, Weltmacht Energie: Herausforderung für Demokra- tie und Wohlstand (Stuttgart: Hirzel, 2005). with the social and economic dimensions of sustainability. 19 Stefan Bringezu, Stephan Moll and Helmut Schütz, Resource Use in European Countries: Analysing possibilities for action amidst the fraught field of globaliza- An Estimate of Materials and Waste Streams in the Community, Including Imports tion conflicts, ecology and global justice, threatening wars over resources, and Exports, Using the Instrument of Material Flow Analysis, Wuppertal Report No. 1 national economic weakness, high public debt, heightening social tensions, (Wuppertal: Wuppertal Institute, 2005). efforts to protect quality of life and changed models requires an integrative 20 “Avoidable” means that the same service or a service of equal utility can be achieved using less energy or material. A considerable proportion can be saved “economically”, i.e. the type of application-oriented research and scientific policy advice. The key capital and transaction cost repayments are lower than the annual energy and/or material concept that links these conflicting areas and opens up options for solu- cost savings. tions is an accelerated increase in energy and resource productivity. This is 21 Internal estimate by the Wuppertal Institute and Dr Fischer. an absolutely essential, though not a sufficient, condition for the complete 22 See Aachener Stiftung Kathy Beys (ed.), Ressourcenproduktivität (see note 1). 18 Annual Report 2005/2006 Increasing Resource Efficiency 19 decoupling of growth in welfare (improvement in the quality of life) from New topics for cooperative research resource consumption. “Essential” relates in a material respect to the avail- Investigating subject areas around energy and resource productivity and ability of resources and sinks. Moreover, this decoupling process is also indis- climate and resource protection is an ongoing scientific task, both because pensable for fulfilling the economic and social prerequisites for sustainability of the underlying climate protection policy timescales (2020, 2050, 2100) (e.g. for inter-generational, international and national fairness of distribu- and the need to adapt to climate change, and on account of the long-term tion). “Not sufficient” refers to the fact that complex questions of toxicity,23 investment cycles for infrastructure in the energy, transport and construc- of regenerability, of tolerable scale, of the concrete scope for material and tion sectors. It is to be hoped that national and EU-wide research policy will energy consumption and of land use must also be answered. In doing so, it is accommodate this long-term research need and that it will be translated not enough to define what quantity of which resources will be available for into major cooperative research programmes. The following are just a few sustainable use at the national level in future. Now, it is increasingly impor- examples of subject areas: tant to take the European and international context into account.

Thus scientific policy advice in the field of sustainability policy assumes a • Operationalizing central ideas and devising implementation strategies new quality. It must combine scenario and system analyses (back- and fore- Translating central ideas on energy and material efficiency that are geared casting) aimed at limiting future uncertainty with the identification of strate- to the long term (e.g. the “2000 Watt Society” by 2050 in cooperation gies to guide action and with concretizing packages of instruments, measures with major Swiss research institutes)24 into policy- and business-relevant and key projects to overcome obstacles more quickly. This requires scientific sub-modules, areas of need and packages of measures (e.g. new energy- stimuli that identify foreseeable risks by scientific methods, highlight the and material-efficient buildings; fleets of two- to three-litre automobiles present scope for action and initiate the setting of long-term courses more of lightweight construction; 500 kWh/a domestic appliance pool; virtual forcefully with an innovative policy mix. In doing so, it is especially impor- decentralized power stations; negawatt power; biomass strategy, biore- tant to highlight how the process of social transformation can be shaped. fineries; sustainable consumption patterns and lifestyles). Successful sustainability policy in this sense can, as projects in schools and in the field of education for sustainability show, can radiate positively onto • Interactions between material and energy efficiency, further development other policy areas (e.g. education policy). It can motivate the many and of the material efficiency programme diverse actors in civil society (above all young people) to take a greater inter- Integrated analysis of the interactions between material and energy est in playing an active part in shaping social innovation processes. efficiency technologies; development and testing of sector- and target In short, what is needed is application-oriented sustainability research group-specific packages of instruments for tapping cost reduction poten- that picks up the impetus provided by the 2002 Johannesburg conference tial by means of material and energy efficiency; further development, plan of implementation and provides scientific stimuli to support ecological updating and regular evaluation of a nationwide start-up programme; modernization and a change to more sustainable patterns of consumption building of regional networks and of nationwide coordination between and production in both North and South. The task of this type of research material efficiency actors. is also to act as a catalyst for strengthening market launch and technology diffusion processes and at the same time to review international experience • Kyoto Plus climate policy (e.g. from Japan) in terms of its transferability to Germany. Development, harmonization, simplification and evaluation of the diverse energy and climate policy instruments in Germany, including in 23 The concept of eco-efficiency as used, for example, by the World Business Council for the light of recent international developments (Kyoto Plus). Develop- Sustainable Development (WBCSD) explicitly includes reducing the use of toxic materi- ment of international climate policy strategy, e.g. specification of targets als. See WBCSD (ed.), Measuring Eco-Efficiency: A Guide to Reporting Company based on a quantitative analysis of integrated scenarios and concepts Performance (London, 2000); http://www.gdrc.org/sustbiz/measuring.pdf. See also such as equity or contraction and convergence, along with the attain- Liselotte Schebeck, “Materialeffizienz und das “Konzept Ökoeffizienz”: Perspektiven aus Sicht von Wissenschaft und Praxis”, in Materialeffizienz. Potenziale bewerten, Innova- tionen fördern, Beschäftigung sichern, ed. by Christa Liedtke and Timo Busch (Munich, 2005), pp. 27–36. 24 Eberhard Jochem (ed.), Steps towards a Sustainable Development (see note 5). 20 Annual Report 2005/2006 Increasing Resource Efficiency 21

ability of those targets through energy and climate policy instruments. tion technology in transport and mobility behaviour, environmental Interactions between flexible mechanisms and sector- and technology- information systems in companies and business resource management. specific instruments for energy efficiency and renewable energies to encourage innovations, market penetration and technology transfer on • Policy innovations for energy efficiency programmes parallel tracks. Further conceptual development and policy innovations for energy efficiency programmes, e.g. energy efficiency fund; Top Runner approach; • Energy security and import dependency / relationship between climate white certificates; “feebate” programmes; cooperative procurement; policy and energy-related foreign policy contracting, “intracting”, citizen contracting, facility management, Identifying trade-offs between security of supply, climate protection and mobility management; public procurement. a sustainable national energy mix; strategies to reduce dependency on imports of oil and gas; e.g. including bilateral cooperation with OPEC • Resource scenarios and resource management strategy countries in accordance with the central idea of technology transfer Identifying priority resource-intensive sectors, technological and institu- (energy efficiency/renewables) in return for stable oil/gas supplies. tional improvement potentials and actor-oriented areas of action; devel- oping blueprints for the future resource base in Germany, Europe and • Infrastructures of the future the world (material, energy, land), for the domestic and foreign share; Analysing the role of decentralized and semi-centralized infrastructures developing a biophysical perspective for industrial sectors, addressing in the complex of technical development (recycling, cascades), liberaliza- key technologies and coupling them with socioeconomic potential. tion, climate protection and quality of life; developing guiding concepts for the future market integration of infrastructures for energy, water/ • Extended material flow analyses sewage, waste/disposal and public transport. Linking material flow analyses, material and land use with micro- and macroeconomic cost accounting; further development of the bases • Acceleration of market launch processes, diffusion of ecological for monitoring and evaluation of progress towards increased resource innovations productivity at various levels and for various players, along with analysis Accelerated market launch of renewable raw materials, differentiated of value chains and cross-border transfer processes (ecological rucksacks, by sector, with accelerated efficiency strategies in both developed and physical foreign trade balances). developing countries; analysis of barriers to invention, innovation and diffusion of material and energy efficiency technologies and measures to • Sustainable consumption and production dispel these obstacles (e.g. building networks on life-cycle costs, local or Analysing patterns of consumption and production along value chains regional initiatives and clusters). and for different areas of need on the basis of sustainability criteria (for example, taking into account more sustainable mobility systems) • Justice and fairness in the “greenhouse” and analysing the interaction of production- and product-integrated Climate change and globalized markets place questions of justice and environmental protection, cost reduction and sustainable consumption fairness in a new light. An answer must be found to the question of how patterns. countries in the South can be enabled to develop and simultaneously adjust to climate change that is already happening without losing sight • Environmental monitoring and environmental evaluation of the main goal, that of largely avoiding climate change. Further conceptual development of continuous environment and sustainability evaluation methods, e.g. for monitoring greenhouse gases • Technological innovations and changes in behaviour and strategic environmental testing. Analyses and strategies relating to the interplay between technological innovations and changes in behaviour, e.g. consumption and investment decisions for zero-energy homes, use of information and communica- 22 Annual Report 2005/2006 Increasing Resource Efficiency 23

Naturally, this list is not exhaustive, nor can individual institutes deal with the Federal Environment Ministry, as well as company- and region-related all these subjects. That requires coordination between national and interna- analyses28. tional scientific networks and further expansion of international coopera- Analyses in the international field have also played a greater role. This tion in applied sustainability research. applies especially to the EU, since resource efficiency will be high on the agenda under both the Finnish29 and the German Presidency of the Coun- cil of the European Union. In connection with the World Energy Dialogue New tasks for the Wuppertal Institute (2006) at the Hannover Fair, for which the Wuppertal Institute was involved A central idea in the reshaping of the Wuppertal Institute’s research agenda, in preparing a concept, a workshop was held in cooperation with the Ger- a process that was accelerated by the critical appraisal by the Wissenschafts­ man Club of Rome society on the topic of “Oil as a Crisis Factor”. The rat (German Science Council) in 2001, was to focus on applied sustain- resulting analyses were collected and published.30 ability research. In the process, sectoral research departments were replaced The UNEP/Wuppertal Institute Centre on Sustainable Consumption by thematically integrated, fixed-term research groups and inter-institute and Production, a non-profit subsidiary of the Wuppertal Institute, has groups. This concept has proven to be extraordinarily successful in bet- successfully launched operations and is supporting the Marrakech Process ter meeting the requirements of politicians, business and civil society for for implementing the international action plan on sustainable consump- forms of scientific advice on national and international policy that are ori- tion and production with numerous publications.31 ented towards implementation and problem-solving, especially in the field A large number of meetings with the new North Rhine-Westphalian of resource efficiency. Whether in studies of extensive cost-effective energy state government (including with Minister for Innovation, Research, Sci- efficiency potential with end consumers (on behalf of E.ON Ruhrgas)25 or ence and Technology Professor Andreas Pinkwart and State Secretary Dr a detailed cost-benefit appraisal on the establishment of a national energy Michael Stückradt and presentations to the environment and research efficiency fund to implement the EU energy efficiency directive (on behalf committee) and visits to the Institute by Environment Minister Eckhard of the Hans Boeckler Foundation), our analysis was centred on accelerat- Uhlenberg and State Secretary Dr Jens Baganz of the Economics Minis- ing an increase in energy efficiency by all actors (including the large power try have resulted in a constructive dialogue with the new regional govern- corporations) and on the specific conditions required to make this possible. ment. Unfortunately, by summer 2006 the Institute’s concerns about the An important factor in this is integration in systems analysis and critical appraisal of innovative supply systems such as the use of biomass to gen- erate biogas26 or concrete analysis and acceptance research for the launch 28 Christa Liedtke (ed.), Materialeffizienz: Potenziale bewerten, Innovationen fördern, of hydrogen on niche transport markets.27 Research Group 3 and Research Beschäftigung sichern (Munich: oekom, 2005). 29 Ministry of the Environment of Finland (ed.), Going Global on Energy Efficiency: Group 4 in particular centred their research on increasing resource effi- Finland’s Initiative Towards a New Generation of Environmental Policy, background ciency, the former from an international, comparative point of view and the paper (Helsinki, 2006). http://www.ymparisto.fi/download.asp?contentid=53253&lan=en latter from the point of view of companies and production chains. In view 30 Peter Hennicke and Nikolaus Supersberger (eds), Krisenfaktor Öl (see note 9). of rising raw material prices, this has generated a host of new research sub- 31 Division for Sustainable Development of UN-DESA, UNEP, UNEP/Wuppertal Institute jects for the German Federal Ministry of Education and Research and for Collaborating Centre on Sustainable Consumption and Production CSCP (eds), Making the Marrakech Process Work, discussion paper for the 2nd International Expert Meeting on the 10-Year Framework of Programmes on Sustainable Consumption and Produc- tion, San José, Costa Rica, 5–8 September 2005. http://www.un.org/esa/sustdev/sdissues/ 25 Stefan Thomas et al. Optionen und Potenziale für Endenergieeffizienz und Energiedienst­ consumption/Marrakech/discussionpaper.pdf See also UNEP/Wuppertal Institute leistungen, final report commissioned by E.ON AG. (Wuppertal: Wuppertal Institute, May Collaborating Centre on Sustainable Consumption and Production CSCP (ed.), Sustain- 2006. able Energy Consumption, background paper prepared for the European Conference 26 Wuppertal Intstitute et al. (ed.): Analyse und Bewertung der Nutzungsmöglichkeiten von under the Marrakech Process on Sustainable Consumption and Production, Berlin, 13–14 Biomasse: Untersuchung im Auftrag von BGW und DVGW, vol. 1 Gesamtergebnisse und December 2005. http://scp-centre.org/uploads/media/EnergyMarrakech_Background. Schlussfolgerungen (Wuppertal et al., January 2006). pdf See also UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consump- 27 See the HYCHAIN-MINITRANS project. Demonstration of innovative fuel-cell technol- tion and Production CSCP (ed.), Integrating Sustainable Consumption and Production ogy in light and small vehicles with the aim of developing early entry markets for hydro- into Poverty Reduction Strategy Papers: A Joint UNEP/CSCP Manual, draft version of gen in Europe. 17 March 2006. 24 Annual Report 2005/2006 Increasing Resource Efficiency 25 necessary minimum long-term safeguard of its basic funding had yet to The Wuppertal Institute has coped with the change of financial struc- be allayed. However, with the support of all parties and of the innova- ture resulting from the sharp decline in institutional funding from the Land tion ministry, signs of possible solutions for 2007 and subsequent years North Rhine-Westphalia in recent years by successfully securing third-party are emerging. funding on the research market (see also the article by Brigitte Mutert on Stable and reliable long-term finances are also of great importance to page 85). Nonetheless, a minimum safeguard of basic funding is indispen- the staff of the Institute, who have not only continued to develop their sable for an institute that operates internationally, in order to underpin its expert know-how and the Institute’s ability to canvass work on the inter­ capacity to canvass work and to produce innovation and scientific substan- national research market in an exemplary fashion, but have also made tiation through its own fundamental work (e.g. in research, teaching and financial sacrifices to keep the Institute functioning, in anticipation of long- peer-reviewed publication). term financial security transpiring. The Institute’s new programme for PhD researchers (see the article by Oscar Reutter on page 75) will serve in the Peter Hennicke years ahead to systematically encourage, in cooperation with numerous President universities, the academic qualification of a rising generation of scientists. That continued development of the Institute’s expertise has not suf- fered as a result is demonstrated by the successful postdoctoral lecturing qualification obtained by Raimund Bleischwitz (at University) and Uta von Winterfeld (at the Free University of Berlin) and the completion of outstanding doctorates by, for example, Phillip Schepelmann, Christian Jungbluth and Stefan Thomas. In recognition of his particular achievements as head of Research Group 1 and of services rendered to the Institute, in June 2006 Manfred Fischedick was appointed Vice-President. During my term of office he will also represent me externally on important occasions. Gerhard Scherhorn has played a key role in driving forward research at the Institute for many years and, along with Christa Liedtke, successfully built up Research Group 4. He is now treating himself to a reduced work- load but will continue to support the Institute in an advisory capacity. We were fortunate to succeed in involving Professor Ronald Schettkat of the in closer scientific cooperation with the Insti- tute. Professor Schettkat will provide expert support and strengthen the competence of Research Group 4 in the field of economics. He will also take charge of organizing a comprehensive economic research seminar to which economists of international repute are also to contribute. For the subject of sustainable consumption and production affects especially fundamental questions of growth and innovation theory as well as employment and the labour market.  27

Research Group 1: Future Energy and Mobility Structures

The development of the energy and mobility system is shaped by a growing number of political guidelines and goals (e.g. environmental and climate protection, energy supply security, competitiveness, concern about social impact, low vulnerability vis-à-vis external and internal effects), which together result in a complex situation. Moreover, every region has its own specific problems and priorities. While in many developing countries, the environmental problems in the megacities are of utmost concern, in many industrialized countries the focus is on reducing the dependence on oil and gas (and the pricing policies of oil and gas companies), while achieving economic and ecological goals. Both in Germany and abroad, large invest- ments in maintaining and expanding energy supply are imminent. In its World Energy Investment Outlook, the International Energy Agency (IEA) On 20 February 2006, NRW-Environment Minister Eckhard Uhlenberg gathered informa- forecasts investments in the energy market of a total of US$ 16 to 17 billion tion at the Wuppertal Institute regarding the state of affairs of the research, as well as on (or trillion for our American readers) for the time period between 2005 and the projects of the Wuppertal Institute being conducted at the state level. Present were Peter Hennicke and the representatives of the research groups. 2030. The market actors in Germany have announced investments totalling € Among the political guests of the Wuppertal Institute were the State Secretary in the 30 thousand million through 2012 to renew power stations and power Ministry of the Environment Dr. Alexander Schink, the Mayor of Wuppertal, Peter Jung, supply networks. At the same time a similar sum is to be invested in renew- along with the Members of the Landtag from Wuppertal Horst Ellinghaus and Peter able energies. Brakelmann, and Jürgen Hardt, Chairman of the Wuppertal municipal alliance of the CDU, In view of this situation, decision makers in the political arena and in Ute Koczy, Member of the Parliament, Bündnis 90/Die Grünen, , Member the business world are increasingly looking for reliable information about of the Landtag NRW, FDP, as well as State Secretary in the Ministry of Economics NRW ways to develop technology and infrastructure. Against this background, Dr. Jens Baganz along with Ministerialdirigent Dr. Volkard Riechmann. the Future Energy and Mobility Structures Research Group (RG 1) explores what sustainable energy and mobility structures might look like, which technologies are necessary to achieve such structures and which goals for research, technology and development can be derived from them. How can the transition to such structures be achieved, and which implications stem from the transformation process? Taking systems, technology and actors into consideration, our encompassing approach is geared to addressing these issues and finding ways to support the related processes. In this context and with a special focus on the national and European levels, RG 1 analyses and explores the following questions: • How can the total stock of power stations be optimized in terms of environmental protection, energy efficiency and profitability over time? 28 Annual Report 2005/2006 Research Group 1 29

• How can we promote the expansion and integration of decentralized • Level of environmental, technological and industrial systems (e.g. the energy supply technologies and renewable energy, both in terms of role of individual technologies for attaining political goals) systems integration and integration into the power supply networks? • Business level, through identifying long-term business strategies of Which technical and infrastructural measures are necessary to achieve relevant industry stakeholders (e.g. biogas as “green gas” for the gas that goal? industry) • Which effects do the changing population and demand structures have on the energy and transport systems and the infrastructures on which At the centre of RG 1’s research are two focus projects, “New Fuels and they are based? Energy Carriers“ and “Technologies and System Integration”, the latter • How can we achieve a better integration of the fuels industry and the newly established in 2006. Complementing these focus projects, and in energy industry (supply of alternative fuels)? close coordination with them, the research group is researching how central • Which new technologies and concepts for use in the realms of transport infrastructures (e.g. electricity networks) could or should be developed and and energy are necessary to make supply more energy-efficient? which factors determine the systems (e.g. dynamic development of settle- • How can renewable energies and energy efficiency technologies be ment patterns). combined to obtain integrated systems solutions? At national and international levels, an intense discussion about pos- • In a systematic assessment, how do the new technologies compare with sible new energy carriers has developed in recent years, driven most of all the options available today, and which opportunities exist for bringing by the search for alternatives to mineral oil as the fuel for transport. In this them into the market? context, research within the Focus Project “New Energy Carriers and Trans- port Fuels” emphasized the following: The time frame for analysis accordingly encompasses both the short and medium perspective as well as long-term analysis. Concerning methods, • The techno-economic and ecological evaluation of new energy carriers the research group’s interdisciplinary team uses the instruments of scenario and the corresponding technologies for use, e.g. concerning the possible analysis, process chain analysis and infrastructure analysis. Elements of role and potentials of synthetic biofuels (Project “Biomass Potentials social-empirical research and acceptance analysis are also employed. RG 1 and Options for Generation” for the Ministry of Economics of the Land collaborates with (currently) five doctoral candidates whose research con- North Rhine-Westphalia) tributes towards honing and elaborating our scientific methods, including • The systems-analytical evaluation of new energy carriers and the primary modelling. energy resources on which they are based, in the framework of scenario The research group cooperates closely with industry on the one hand analyses and holistic strategies (e.g. Project “Integrated Strategy for the and the scientific community on the other in order to carry out its projects Introduction of Alternative Fuels” for the German Federal Environment with the necessary proximity to implementation. It is in this context that Agency) the group’s collaboration in important networks, sometimes in a lead- • The analysis of the infrastructural requirements for more intensified ership role, at regional level (e.g. Competence Network Power Stations, use of alternative energy carriers, e.g. concerning the expanded use Mobility and Fuel Cells of the Land Initiative for Energies for the Future, of biomethane (biogas and synthetic natural gas) via processing and parliamentary study commission North Rhine-Westphalia), at national feeding into the natural gas network level (e.g. on hydrogen) and at EU level (various technology platforms) is to be viewed. One project that serves as an example of the RG’s work in this area is the Based on the application-oriented approach described above, the biogas cooperative project that the Wuppertal Institute carried out for the research group seeks to conduct research at three levels: German gas industry in cooperation with other research partners. The Focus Project “New Energy Carriers and Fuels” also analyses the • Research level (e.g. Projects “Hychain” for the EU, “Car Sharing” for the potential of hydrogen as a future energy carrier and fuel; RG 1 is a research German Federal Ministry of Education and Research, “Road Map Energy partner in the EU Integrated Project “HYCHAIN-Minitrans” (project dura- Research” for the Land North Rhine-Westphalia) tion 2006–2011), which promotes the introduction of innovative uses of 30 Annual Report 2005/2006 Research Group 1 31 hydrogen in transport. As a key project within the EU hydrogen strategy, integrating renewable energies into the electricity market and with collect- this project is of particular importance. In its function as coordinator of ing and assembling experiences with the current law. the “Innovation Activities” project, RG 1 investigates the development of In the context of renewable energies, the analysis of system integration sustainable pioneer markets for innovative technologies, building on work plays an important role. In various projects, this applies to the effects on for a Hydrogen Road Map NRW which was completed in early 2006. power supply networks, and above all to the question to which extent the In addition to current projects, the research group is constantly expand- partly uneven energy supply from renewables can be made more steady ing its horizons both at national and international levels: using load management measures (including additional loads which can be controlled), electricity storage facilities, or by promoting the develop- • Technology analysis, especially regarding second-generation biofuels ment of hybrid power stations. Can such and similar measures achieve an and the special potentials of biomass gasification as a robust use of the increased supply of renewable energies to the electricity market? A second most diverse biomass fractions including waste materials (see below) “System Integration” project deals with the dynamically changing demands • Analysis of the techno-economic synergies of a coordinated transition of (due to demographic change, decreasing heat density, etc.) on the long- fuel systems, e.g. concerning the synergies between natural gas/biometh- distance and urban district heating networks and ways of adapting to such ane and hydrogen technologies changes. • Holistic evaluation of the roles bioenergy could play in integrated Another focus lies on the analysis of energy efficiency technologies and sustainability strategies (especially in cooperation with RG 3 we are decentralized energy technologies. Projects funded by the European Union planning to analyse interactions and synergies where biomass is used in investigate energy-efficient refrigerators (“Pro Cool”) and efficient heat energy generation or as a material, including consideration of cascading pumps (“Factor 4 Pumps”). At national level, a comparison of innovative uses) heating systems is being carried out, and in cooperation with the energy • Continuation and expansion of energy systems analysis with a focus on industry, the efficiency potentials which can be exploited in Germany were robust expansion paths for renewable energies in changing framework identified and evaluated as the basis for a business segment analysis. The conditions analyses are complemented by studies in the area of research and technol- ogy policy. For example, the research group developed a Road Map Energy In 2006 a second central research area, the Focus Project “Technologies Research for the Land North Rhine-Westphalia and analysed future policy and System Integration”, was established with the aim of bridging the gap options for promoting long-distance heating. between individual technologies and their integration into the energy and Studies on the future of car sharing in Germany (time horizon: 2020) transport systems. In this context, a significant field of the RG’s research are at the centre of attention of our work on mobility/transport. A multi- concerns carbon capture and storage (CCS). year project analyses ways of establishing car sharing as a viable option in Located in the area of renewable energies and sponsored by the Swiss the transport market and links those results to scenarios illustrating the foundation Pro Evolution, the internationally oriented WISIONS sup- environmental impacts resulting from an increase in car-sharing options. ports concrete projects (mostly in developing countries) as a financial and In June 2006, the preliminary results were discussed at an expert work- research partner and publicizes examples of good practice. To date, six shop. Further projects are concerned with the demands on the mobility brochures with examples of good practice have been published, and fif- and transport system, relating it to societal, economic and technological teen projects worldwide have received financial support. RG 1 is also work- processes of change. Particularly important in this context is, for example, ing with RG 2 to examine the opportunities for using the Clean Develop- the question of the automobile of the future and the effects of social and ment Mechanism as a financing mechanism to implement projects in the demographic change on mobility behaviour. area of renewable energies. The “Renewable Energies and Security” project addresses this highly topical issue in terms of a broad definition of security (security of supply, risk minimization, crisis prevention, etc.). In addition, RG 1 is involved in reviewing Germany‘s Renewable Energy Sources Act (EEG). Current projects in this area deal both with possibilities for better 32 Annual Report 2005/2006 Research Group 1 33

Typical project Theoretical potential of the supply with biogas over time Analysis and assessment of bioenergy pathways 200 /a The project of a consortium under the coordination of the Wuppertal

Institute was commissioned by the German gas industry. The project inves- bn kWh 163 tigated various bioenergy pathways with special focus on the future role 150

of biogas. Commonly, biogas is understood as a methane rich gas stem- potential of biogas ming fermentation of residues such as manure or the biomass content of municipal waste. At present, the total technical biogas potential in Germany 116 amounts to 72 TWh/a (Figure page 33), among which the highest share 100 stems from agricultural residues. One third of the potential, however, can be assigned to the cultivation of energy crops for fermentation (maize) on 72 a available area of 550.000 ha that could deliver a biogas production of 24 TWh/a. Even more important, it can be expected that this segment of the 50 biogas potential will grow substantially due to increased abvailability of arable land for energy crop cultivation. On the contrary, the amount of residues is likely to stagnate. For the future, therefore, a significant increase of the total technical biogas potential up to some 160 TWh/a in the year 0 2030 can be identified, assuming a full dedication of set-aside land to this 0 2005 2020 2030 year utilization route (Figure page 34). Obviously, only part of this technical potential will be suitable for com- mercialization under real frame conditions. A structural problem to address Potential of biogas made of energy crops owing to increase of area municipal residue the potential can be seen in the decentralized nature of a biogas system. and yield increase of 2% fraction of potential presently used Due to a limited range of transportation of the basic agricultural feedstock energy crops potential of biogas (10–20 km), biogas will be produced most likely at the site if the farm that residue from harvest and excrements (min/yield increase of 1%) offers only little opportunities to take benefit from the energy. New possi- industrial residue potential of biogas Source: (max/yield increase of 3%) bilities emerge, however, when cleaning and upgrading the biogas in order Ramesohl et.al., 2005 to feed into the natural gas grid.

The study reveals compelling arguments for this route: • a theoretical potential of some 18 percent of the German natural gas consumption can be replaced by biogas • technologies for cleaning, upgrading and grid connection are market available • distributing biogas via the grid allows for producing electricity in CHP units that are close to the heat demand and thus more efficient • the existing framework for promoting renewable energies in Germany provide sufficient support to commercialize biogas-CHP based on energy crop cultivation • the use of biogas as a transport fuel offers a more cost-effective option than many other biofuels such as ethanol 34 Annual Report 2005/2006 Research Group 1 35

Energy system's view on GHG mitigation impact and cost efficiency of Typical project biomass pathways (The German example) Carbon Capture and Storage: CCS

1200 Regarding CCS Research Group 1 is involved in several projects. One biogabiogas CHP important example is a common project with high stakeholder relevance. (man(manure) In this project, commissioned by the Federal Ministry, driving forces for 900 CO2 sequestration and storage as well as the current assessments of relevant players are presented. Furthermore the perspective role of CCS for climate biogas CHP kWh final energy) wood CHP SNG CHP protection, and the compatibility with other central strategies of climate ./ (energy crops) protection are analysed. The core of this project is a systematic compari- eqv 600 2 son of CCS with other climate protection technologies, particularly renew- CO able energies (costs, learning curves, life cycle balances etc.). The strategic transport fuelsfu importance of central components such as integrated gasification tech- heat BG-M 300 BTL nology (Figure below) as well as the national and global industrial policy SG BG-E importance of CCS are further aspects . Actually the crucial question is: RME BG Et-OH how far CCS can be a “bridging technology” for the transition to a “Solar GHG mitigation (g age”. These technical and systemanalytical subjects are accompanied with 0 0 4 8 12 16 analysis of acceptance and aspects regarding the development of CO2-infra- difference costs (ct/kWh final energy) structure.

electricity and heat E energy crops heat BG-M biogas manure Integrated coal gasification as key element of CO2-capture and option transport fuels BG-E biogas energy crops for the expansion of the product portfolio of coal based fuels CHP combined heat and power BTL biomas-to-liquide RME rapeseed methyl ether SNG synthetic natural gas CO2 storage BG biogas EtOH ethanol infrastructures Source: M manure GHG greenhouse gas Ramesohl et.al., 2005

CO2 capture chemical industry

Syngas efficient coal use gasification electricity system

synthetic fuels hydrogen production

H2 alternative fuels Source: Ramesohl, Fischedick, 2002 36 Annual Report 2005/2006  37

Research Group 2: Energy, Transport and Climate Policy

In recognition of the fact that the emission of greenhouse gases caused by human activities has an impact on climate change, the G8 leaders clearly signalled their commitment to global climate protection at the Gleneagles summit in mid-2005. But Gleneagles also stands for another important trend: while the actual climate regime and the Kyoto Protocol were devel- oped to reach beyond 2012, numerous international climate initiatives out- side the UN process have also been launched. Rising fossil fuel prices and the debate on energy supply security affect nearly all sectors and indus- tries. Moreover, they reveal that energy efficiency is a central issue for every modern economy, as demonstrated for instance by reactions to the Energy Summit initiated by German Chancellor Angela Merkel early in April 2006, or the entering into force of the EU Energy End-use Efficiency and Energy Services Directive in May 2006. In the transport sector, too, the importance The journalistic workshop in preparation for the “Energy Summit” with the Chancellor was of energy efficiency and renewables is increasing. well received. The Wuppertal Institute had invited journalists to that event on 30 March 2006. Peter Hennicke, Manfred Fischedick and Stefan Thomas were available as experts to These trends underline the need for research to analyse, assess and answer journalists’ questions. Photo: Dorle Riechert refine a climate, energy and transport policy that is efficient, sustainable and consistent. Research Group 2 analyses the options for designing and widely adopting such a policy. Central criteria are the integration of objec- tives, stakeholders and instruments, orientation towards long-term objec- tives and efficiency and general acceptance of the developed strategies and instruments.

In this context, the core issues addressed by RG 2 are as follows: 1. What does an integrated energy, transport and climate policy look like, one that is oriented towards long-term targets, especially with regard to climate change beyond 2012, energy efficiency and renewables as well as sustainable mobility? How can such a policy be designed using innova- tive strategies and instruments? 2. Which structural conditions would be conducive to the implementa- tion of such an energy, transport and climate policy? How do individual instruments and packages of instruments interact? How do instruments and structural conditions interact? How are these instruments designed United Nations Climate Conference in Montreal. The Wuppertal Institute was represented in modern policy networks involving a multitude of players, how are they by Ralf Schüle, Bernd Brouns, Bettina Wittneben and Hermann E. Ott (from left to right). introduced into political decision-making processes and what are the 38 Annual Report 2005/2006 Research Group 2 39

conditions for a wide dissemination? What role is played by demand-side in particular the problems of nuclear waste disposal and plant decommis- oriented instruments and strategies, in particular with regard to energy sioning. Gas and fossil fuel markets as well as the integration of energy effi- and mobility services? ciency and renewables are a further concern.

In 2005/06 as in previous years Research Group 2 consistently worked on Transport Policy its research strategy and focus. This process involves concentrating the the- matic scope in the two focus projects, integrating the synergies that result The research group’s work in the field of transport policy includes analy- from common points of concern in the sub-sectors energy, transport and ses of and proposals for policy and planning instruments such as strategic climate and ensuring and developing our expertise in the core research environmental auditing. China is one of the non-European countries inter- fields. These are structured as follows: ested in such instruments; in this context, Research Group 2 is participating in a project on behalf of the German Federal Ministry of Education and Research on transport planning in megacities. The public debate on par- Energy Policy, with a Focus on Energy Efficiency Policy ticulate matter had renewed interest in this issue, also on regional and local RG 2’s research on regulatory frameworks conducive to end-use energy levels. A first project was carried out on behalf of the North Rhine-West- efficiency, in particular on the EU and the national level, includes studies on phalian Environment Ministry. the Energy Efficiency Fund (e.g. expertise on the concept of an energy-sav- Further research is dedicated to instruments for environmentally benign ing fund, EnergieSparFonds, for Germany on behalf of the Hans Boeckler forms of transport. This concerns concepts and proposals for the public Foundation) and on legal regulations or voluntary agreements that obligate transport system, mobility management and services as well as commu- the energy industry to motivate customers to save energy. In this context nication concepts. RG 2 actively contributed to the investigation of such the research group examined a system of regulative incentives for common concepts in several projects carried out for the German Federal Ministry carriers which would break the link between profits and quantity of sup- of Education and Research. The “Multibus” project, for instance, dem- plied energy and allow energy saving programmes to be financed without onstrated how to generate knowledge through implementation-oriented impacting competitiveness. The research group analysed the effects of taxa- research and, at the same time, how to disseminate good practice. tion as well as direct and indirect subsidies on the relative competitiveness Gender-competent transport policy and planning is the subject of of various energy carriers. several projects, e.g. for the European Parliament and KfW Bankengru- Analysis, testing, evaluation and development of innovative instruments ppe. These projects explore the major problems of androcentric transport of energy efficiency policy and innovative energy services are also part of science, planning and policy, problems related to the economy of caring the group’s work in this field. Following the Wuppertal Institute’s imple- and home labour, the structural dynamics of individual actions in private mentation-oriented approach, Research Group 2 actively participates in households and public institutions as well as questions of gender-compe- pilot projects to obtain immediate detailed knowledge on the effectiveness tent national and European transport policies. of instruments. Communication of research findings and the publication of good practice examples are integral elements of every project, for instance Climate Policy the “Energy+” projects, which examine the instrument of aggregated pur- chase as an incentive for the development and market launch of highly In the research field international climate policy, the further development efficient cooling devices and heating pumps, the “Solar&Save” projects on of the international climate policy regime is one current focus of research. “citizen contracting” for energy savings and solar systems in schools (a fur- In one project, a proposal developed in co-operation with the Berlin office ther EU-project applies the findings to the situation in other EU countries) was discussed with representatives of several developing and transition and the project analysing regional network nodes for the modernization in countries. terms of energy of residential buildings in North Rhine-Westphalia. On the other hand, the subjects of various projects refer to the flexible In the field of energy policy the research group also analyses the gen- Kyoto-instruments Clean Development Mechanism (CDM), Joint Imple- eral regulatory frameworks of energy, coal and nuclear policy, addressing mentation (JI) and emssion trading, as e.g. the project on strategies for pro- 40 Annual Report 2005/2006 Research Group 2 41 moting renewables through the CDM, or the the JI-Coordination Unit for (Portugal) and Politecnico di Milano (). The findings of our research the Federal Environmental Ministry. activities were brought to the (expert) public at many scientific and other A project on emissions trading, coordinated by RG 2 and commissioned conferences. by the German Federal Ministry of Education and Research explored, in a In the course of the strategic development of RG 2, the two focus first phase, the formation process of the EU Emissions Trading System; in a projects, “Integrated Energy, Transport and Climate Policy in European second phase, the impacts on a possible linking of the EU system with the Multilevel Governance” and “Diffusion of Successful Policy Approaches”, evolving emissions trading systems in other countries were analysed. were evaluated and redefined early in 2006. While during the first phase both projects were mainly defined in terms of theory and method, the focus has now shifted to the issues outlined above, the various aspects of which Integrated Energy, Transport and Climate Policy will be concentrated in the focus projects. Obviously method and theory Energy, transport and climate policy and also the topics covered by the continue to play a major role in the research, but they will no longer repre- Future Energy and Mobility Structures Research Group overlap in the sent the central concern. This concentration reflects the systematic integra- energy and emission scenarios, which model the impact of sets of policy tion und focusing of research topics in an ongoing process over a period of instruments as well as of energy mobility services and analyse their poten- several years. tials. Such policy-based scenarios were, for example, drawn up for the World The new focuses are: Wide Fund for Nature (WWF) to demonstrate that the EU-25 can achieve a 1. Instruments of integrated energy, transport and climate policy, in partic- reduction of its greenhouse gas emissions by 30 percent or more by 2020. A ular for “Kyoto plus” and energy efficiency scenario for the European Parliament addressed energy supply security. 2. Future energy and mobility services The research partnership on sustainable local services, “Perspectives of Decentralized Infrastructures”, is coordinated by RG 2. The project is car- Three research fields will be covered: ried out on behalf of thirteen German municipal utilities and the Asso- • “Kyoto plus / Parallel tracks”: How do climate policies within the UN ciation of Municipal Companies (VKU) with the participation of the four process and other multilateral initiatives promote specific technolo- research groups of the Wuppertal Institute. gies (e.g. energy efficiency and renewables) or measures (e.g. national Doctoral, master’s and diploma theses provide another opportunity to emissions tradings systems) to complement one another? address specific research questions in greater depth and detail. In 2005/06, • Instruments and strategies of energy efficiency policy in stationary energy Bettina Wittneben and Stefan Thomas successfully completed their doc- uses and especially in the transport sector toral theses, and in April 2006 Michael Kopatz submitted his. A further • Adapting of energy and mobility services to social change seven doctoral candidates are currently working on their theses. Clients of the RG 2 include the European Commission, the European Parliament, the German Federal Ministry of Education and Research, the Typical project German Federal Environment Agency, the Ministry of Energy and Trans- port and the Environment Ministry of the Land North Rhine-Westphalia, JET-SET the Deutsche Gesellschaft für technische Zusammenarbeit (GTZ), the KfW Bankengruppe, the Japanese Environment Ministry as well as business On behalf of the Federal Ministry of Education and Research (BMBF), since enterprises, foundations, NGOs and local authorities. mid 2003, the project “Jet-Set — The Introduction of Emissions Trading Numerous cooperations with universities and other research institu- Systems as a Socio-Ecological Transformation Process” is carried out in tions have been intensified through joint projects and proposals, on inter- cooperation with four other research institutes (ZEW in , CESR national level for instance with the Institute for Global Environmental in Kassel, ifeu in and isoe in Frankfurt/Main). Studies (Japan), the Center for Environment and Energy Research and The development of Emissions Trading Systems (ETS) adds a new Studies (Iran), the University of Minerals and Mining (), Oxford ­market-based instrument to EU environmental policy, which has tradi- University (Great Britain), Lund University (Sweden), Coimbra University tionally been more oriented towards command-and-control instruments. 42 Annual Report 2005/2006 Research Group 2 43

ETS, 3) Framework conditions regarding potentials and risks of a short to midterm linking of the European ETS. Different future options for the development of the European ETS were analysed from a transdisciplinary perspective. For an integrated energy, transport, and climate policy, in particular, three aspects are relevant: 1) Multidisciplinarity, which means that the potential future development paths of the European ETS have been analysed from different disciplinary perspectives. 2) The scenario technique has been applied, which means that common assumptions regarding the future political framework as well as the future trend in emissions have been jointly developed and applied for the assessment of different options. 3) With its analysis and recommenda- tions the project provides a contribution to the political discussion on the The final conference of the JET-SET project, 29–30 May 2006, from left to right: Dr. Manic further development of the European ETS. Roy (PEW Center, USA), Rie Watanabe (IGES; Japan), James White (National Emissions In the context of the project a conference titled “Linking Schemes: Poten- Trading Taskforce, Australia), Dr. Ralf Schüle (Wuppertal Institute). Photos: Renate Duckat tial Impacts of Linking the EU Emissions Trading System with Emerging Carbon Markets in other Countries”, organized by the Wuppertal Institute, took placein Brussels from 29–30 May 2006. The design of this instrument at the national level entails both new chances as well as risks. There is still Typical project a large information gap concern- ing the ecological, economic, insti- Multibus tutional and social implications of ETS. In the first project phase, Due to changing political and financial circumstances, the public transport the emerging transformation pro­ system — especially in rural areas — faces massive negative changes. As cesses caused by the European ETS part of the research project “Multibus — the bus system for the rural areas”, in these areas have been analysed. it could be demonstrated that introducing a flexible call-a-bus-system that Moreover, there is a strong need replaces and amplifies a cost-intensive regular service could be cheaper for further research on the further thus improving the quality of public transport in rural areas. Moreover, development of the European ETS the qualitative improvements of the public transport supply have resulted for the so called first commitment in a higher number of public transport users and thus, higher proceeds. period of the Kyoto-Protocol from Referring to customer relationship, the Wuppertal Institute designed a new 2008–2012 as well as the period marketing concept based on social marketing and promoted the implemen- from 2012 onward. In the second tation of the new MultiBus-concept. project phase, the analysis therefore focuses on assessments of potentials, Based on the project experiences, other relevant factors have been iden- impacts, and risks of linking the European ETS with other emerging ETS tified for a successful implementation and establishment of call-a-bus- on national or subnational levels such as in Switzerland, Norway, Canada, ­system in rural areas. Japan but also in some regions of the USA and Australia. MultiBus is a project example of developing and testing new mobility Results were achieved in the following areas: 1) Understanding the concepts. Based on its experiences, recommendations could be developed introduction, implementation and impacts of quantity and market based aiming at a further diffusion of good practices. The project was developed instruments, 2) Developing recommendations for the design of a future for the Federal Ministry of Education and Research (BMBF) from the end 44 Annual Report 2005/2006  45 of 2001 until the end of 2005. The project team from Research Group 2 Research Group 3: Material Flows and cooperated with the engineering firm Harloff Hensel Ingenieur GmbH in , the WestEnergie und Verkehr GmbH in Geilenkirchen as well as Resource Management the local authorities from .

Objective

The Material Flows and Resource Management Research Group (RG 3) examines material flows from extraction to final disposal, taking account of global “ecological rucksacks” and the land use involved. RG 3 develops concepts, strategies and instruments for the promotion of resource produc- tivity and economy-wide sustainable resource management. The vision of the research group is an economy embedded in natural material flows with minimal resource consumption (“Factor 4 to 10”) evolving in an interna- tional context of fair exchange. This objective has been lent increasing importance by the European Union’s Thematic Strategy on the Sustainable Use of Natural Resources, which was adopted in December 2005 and towards which RG 3 contributed various studies. Other important factors are the incorporation of sustain- able resource use into the Guidelines for Growth and Jobs of the European Commission set out as part of the Lisbon process and the implementation of the German Sustainability Strategy.

Research Fields • Analysis of the socio-industrial metabolism and global land use of economic areas • Development of sustainable resource-use scenarios • Further development of multilevel information systems and official statistics • Formulation of a resource policy oriented on a circular flow economy and development of innovation guidelines for sustainable resource management in national, European and international contexts.

Main Focuses • Increasing resource productivity without shifting the environmental burden. • Integrated sustainability assessment of material flows and land use. 46 Annual Report 2005/2006 Research Group 3 47

Research Results and Ongoing Projects (Examples) file of this actor group (http://www.daseinsvorsorge.com). One result here is that the enacting of the EU landfill ban of organic waste had consider- Focus I: Increasing Resource Productivity without Shifting the able positive effects on climate protection. Moreover, the waste industry has Environmental Burden started to produce alternative fuels from waste and thus contributes to the protection of primary resources. Starting from the concept of a socio-industrial metabolism and the Fac- In order to root the resource efficiency agenda in practice, similar work tor X vision, this focus project deals with aspects of implementation in a was done in cooperation with event agencies and exhibition companies multilevel system encompassing extraction, processing, use and disposal. In (www.eventkultur.net). A central message of the three-year project for the terms of regional frame of reference the group’s studies compare situations German Federal Ministry of Education and Research is that the event of within the EU. the future is one that convinces by its economical use of resources. How the During the period covered in this report, RG 3 investigated resource- resource efficiency agenda can be implemented in event planning is set out intensive sectors in Germany, including the indirect intermediate inputs for in a virtual handbook (www.eventkultur-lab.de). RG 3 also lent support to goods of final demand. The results show that ten sectors are responsible for the German Advisory Council on the Environment, the German Federal 70 percent of total resource requirements. Input-output analyses provide Ministry of the Environment, Nature Conservation and Nuclear Safety, the an important basis for innovation strategies and scenarios (e.g. for the Ger- European Parliament and the European Commission. man Federal Ministry of Education and Research and for the EU Integrated Focus I is also concerned with the decoupling of economic growth and Project MATISSE). resource use. In multiple correlation and panel analyses the research group Selected material flow systems were analysed in detail. After examining identified the driving forces of material and resource consumption in vari- the material flows related to the production and consumption of iron and ous countries. The results indicate that factors to do with the Gross Domes- steel in the EU, the group continued the analysis of important metals with tic Product explain only one third of the variation in material use between copper and platinum flow systems. With respect to copper production in countries. By using a multi-criteria approach in input-output analysis it was Chile and Germany, the group studied the main environmental impacts of possible to show that resource-intensive sectors are frequently emission- existing process chains and considered the development potentials of man- intensive, too, so that dematerialization may be expected to have positive ufacturing processes as used in Chile and Germany, respectively. Possibili- synergy effects on climate and resource protection. For further comparative ties of combining the different methods were also examined. RG 3 analysed input-output analyses on an international scale, RG 3 is collaborating with the material flow system of platinum group metals (PGM) in Europe, tak- the responsible European bodies (Eurostat, EEA, ETC-RWM); within the ing account of the global sources of PGM. On the basis of this analysis the scope of the National Accounting Matrix including Environmental Accounts group modelled the future demand for PGM as related to catalytic convert- (NAMEA), this involves setting up, reviewing and refining a data base. ers and fuel cells for vehicles. The results indicate a significant risk of prob- The shifting of environmental burdens through physical trade flows to lem shifting if the present energy supply system were to be transformed into and from the EU was analysed in several projects. Special attention was a hydrogen economy. paid to the relocation of resource extraction from industrial to develop- These analyses establish a basis for the development of assessment crite- ing countries. One conclusion on the theoretical level is that imbalances in ria and strategy components of resource policy and resource management. visible trade accounts do not necessarily conflict with transition towards Within the scope of the European Topic Centre on Resource and Waste sustainable global resource use. Several doctoral candidates affiliated with Management of the European Environmental Agency, RG 3 provided back- RG 3 address aspects of this topic in more detail in their theses. ground knowledge on international raw material markets and economic Other doctoral theses deal with the extraction and processing in South incentives (for aggregates in particular) (http://waste.eionet.eu.int/publica- America of resources intended for the EU and discuss possibilities of tions/wp1_2006), thus complementing the ongoing development of assess- increasing the sustainability of resource use in developing countries. This ment criteria for an innovation-oriented resource policy. also includes the examination of linkages between the specific characteris- On-the-ground research into the role of municipal waste management tics of deposits of internationally traded raw materials such as copper and revealed the need for action; RG 3 developed concepts to enhance the pro- the environmental impacts of mining them. 48 Annual Report 2005/2006 Research Group 3 49

Focus II: Integrated Sustainability Assessment of Material Flows and Typical project Resource Use Increase of Resource Productivity as a Core Strategy for This focus project deals with land use competition resulting from different Sustainable Development strategies of resource use and sustainability and develops methods for an integrated assessment. The scope of research comprises land use analyses The “Resource Productivity as a Core Strategy for Sustainable Develop- and the integrated assessment of policy measures. ment” project is supported by the German Federal Ministry of Education For the assessment of the global land use of a country RG 3 has developed and Research (duration from July 2005 to December 2006) and examines the method of Global Land Use Accounting (GLUA). The main focus is ways of reconfiguring the framework of economic action on the basis of on global land use associated with domestic consumption of agricultural business and industry strategies so as to bring about a radical increase of and forestry products. Initial trials with GLUA showed that the domestic resource productivity. use of agricultural goods in EU-15 requires about 20 percent more land The project, which involves a close analysis of information systems, has globally than is used for agricultural purpose domestically. The high use of shown that the resource indicator of the German Sustainability Strategy land by the EU is problematic when compared to the land that is available fails to take account of biotic resources input and does not disclose the worldwide. The research group drew up scenarios to examine how land use ecological rucksacks of domestic and foreign resource use. The indicator competition evolves and what effects an increasing use of biofuels would does not reveal risks related to increased resource imports, either, such as have. Sustainable land use scenarios taking account of biomass are presently growing resource dependencies and problem shifting. Linear extrapolation being compiled to illuminate the situation in Germany. Special emphasis is of various resource use trends in Germany has shown that the reduction on the use of biomass for materials. target of the German Sustainability Strategy by Factor 2 by the year 2020 is RG 3’s methods of material flow and land use analysis were adopted unlikely to be achieved. in EU projects and play an important role in the European Commission’s ongoing efforts to improve the toolbox for sustainability impact assessment. The “Sustainability A-Test” project has documented available assessment Linear extrapolation of various resource use trends of Germany (1994 = 100) instruments online (www.SustainabilityA-TEST.net). For the areas resource 200 use, waste and dematerialization, the EU Integrated Project MATISSE Total Material Requirement (TMR) explores ways of improving tools in early stages of policy formulation Resources after DESTATIS (www.matisse-project.net). A consistent reassessment of methodological 180 Resource equivalents questions helps forecast the probable impacts of instruments, building up Target achievement a reliable fund of knowledge. In this context sustainability scenarios are 160 Resources after DESTATIS and also being drawn up that take account of cross-sectoral driving forces and GDP according chain-linked develop cross-sectoral strategies for a transition towards sustainability. 140 volumes (CLV) RG 3 coordinates the EU Project FORESCENE, which creates sustainability Linear (Resources after DESTATIS) scenarios on topics like biodiversity/land use, water and resource use/waste 120 Linear (TMR) (www.forescene.net). Linear (Resource equivalents) 100 Linear (Resources after DESTATIS and GDP according CLV) 80 1992 ’94 ’96 ’98 2000 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16 ’18 2020 Source: WI/Schütz 2006

Though Germany’s Total Material Requirement (TMR) has stabilized on a high level, the domestic extraction of natural resources is decreasing, while the share of imported resources is growing. 50 AnnualReport2005/2006 ResearchGroup3 51

The fi gure shows that even though domestic resource extraction is on 6 6 6 6 6 6 0 0 0 0 0 0 1 1 1 1 1 1 the decline, resource use associated with imports continues to increase. * * * * * *

500 250 100 While the Total Material Requirement (TMR) in Germany seems to have 66 33 10 ≤ ≤ ≤ ≤ ≤ ≤ stabilized on a high level, the share of imported resources is growing. Also addressed in the project are the direct and indirect linkages between production sectors. Three sectors alone account for 50 percent of resource < TMRij < TMRij < TMRij < TMRij < TMRij < TMRij 6 6 6 6 6 6

0 0 0 0 0 0 use in Germany — a clear sign that action needs to be taken. These are 1. 1 1 1 1 1 1 Acosta 2006 / * * * * * * Mining/quarrying — construction/dwelling, 2. Metals — vehicles, 3. Agri- TMR (t), induced through activity j 250 100 66 33 10 5 culture — foods.

Source: WI Incentive instruments for resource policy are examined and scenarios Sj Si : by direct and indirect use of intermediate products (Euro) from activity i are devised. The project is conducted in an interdisciplinary team includ- ing members of RG 3 and RG 4. Project leaders are Dr Stefan Bringezu, RESOURCE USE Professor Raimund Bleischwitz and Dr Kora Kristof, Dr Christa Liedtke. You will fi nd further information on the project website at www.ressourcen produktivitaet.de (in German). Energy Machinery

Motor vehicles Typical project sustainable land Use and renewable resources

Coal, peat Perspectives for sustainable land use are being explored by RG 3 in coopera- ceramics

Glass products, tion with RG 1, RG 4, the Fraunhofer Institute for Environmental, Safety

Construction and Energy Technology in and the IFEU Institute for Energy products and Environmental Research in Heidelberg in this project conducted for the Food German Federal Environment Agency. Special attention is paid to biomass production and supplies. The focus is on the use of biomass for materials, ideally followed by use as an energy source. While previous research on the utilization of biomass for non-food Agriculture purposes focused on use as an energy source (heating, electricity, biofuels), products Chemical comparative analyses conducted by RG 3 have shown that the utilization for material durable goods and consumer goods (e.g. packaging material, insu- lation material, plastics) may signifi cantly relieve environmental burdens. Even without any signifi cant production of non-food biomass, Germany quarring Mining and and the EU use more global agricultural land than is available domesti-

services cally. Unless production and consumption patterns change, the production Other market and use of biofuels and biomass will require additional global land, which Metals would aggravate the existing imbalance. products Coke and petrol. RESOURCE EXTRACTION Interlinkage of direct and indirect resource use (t) through economic activities induced by domestic production for final demand (Euro) – Germany (year 2000) 52 Annual Report 2005/2006  53

Land use potentials for non-food crops Research Group 4: Sustainable (1000 m2 / per capita) Production and Consumption 2000 2030 8,2 The Sustainable Production and Consumption Research Group (RG 4) is 6,2 foreign working on strategies to develop and implement more sustainable systems 5,4 max of production and consumption. Its starting point is an awareness that 4,3 non food crops 4,1 4,1 4,2 neither consumers nor producers (can) autonomously opt for sustainable 3,7

plant based food domestic 3,1 2,8 2,8 min production and consumption unless stakeholders in politics, society and 2,5 business support them by providing an appropriate general framework. global 1,9 1,7 land The group’s research is centred on global value chains (product-service animal based food use chains or systems), industries and areas of need. The relevant actors are shown creative competences and options for action, the structural condi- EU-15 Source: Bringezu/Steger 2005 tions required for sustainable production and consumption are explored, and in the long term the resulting developments in respect of employment and work will be identified. Examining the possibilities for and obsta- cles to developing sustainable patterns of production and consumption The project aims at requires inter- and transdisciplinary research. This involves combining the • optimizing the use of renewable raw materials for materials, fuels and approaches adopted in different academic disciplines, such as for instance power (biorefinery model), economic with scientific approaches, or sociological, communication sci- • minimizing global land use competition and ence and psychological approaches with political perspectives. • promoting rural development. The research on sustainable patterns of production and consumption is systematized and structured with the help of two focus projects, each of Research is dedicated to the following: which comprises two research fields: • Analysis of the status quo and current trends in the use of non-food Bezogen auf die Abb. biomassin Proj. 2: for materials Non-food crops: Nachwachsende• Analysis of Rohstoffe potentials and drawbacks of the use of non-food biomass Focus Project 1: Resources and Sustainability Management Plant based food (!): Pflanzenfor materials basierte Nahrung Animal based food (!): Tier basierte Nahrung The first focus project, “Resources and Sustainability Management,” is con- • Calculation of land requirements related to these potentials, using Das Ganze bezieht sich jeweils auf "Flächen für...", das kann man aber m.E. weglassen, da aus dem Zusammenhang klar. cerned with the micro-level, that is with the actors, processes and organi- different scenarios zational and management structures in value chains (e.g. companies, con- • Analysis and evaluation of the ecological, economic, technological sumers) and with areas of need. The applied research covers both product and social impacts of the use of biomass for materials line-related material flow data and product-service systems with the ele- • Analysis of trends in the use of agricultural and forestry areas ments B2B (customer integration) and B2C (consumer integration). • Analysis of planning, economic and information instruments In Research Field 1.1, “Product Line-Related Material Flow Data”, prod- • Proposals for measures and instruments to optimize land use in terms uct line-related material flow analyses are undertaken as a starting point for of sustainable resource management analyses in other research fields (e.g. in the area of metals, food, chemicals and plastics, building materials, etc.). The results are data and technology platforms (e.g. www.mips-online.de or the Basque technology platform) for many raw materials, materials and building materials, foodstuffs and 54 Annual Report 2005/2006 Research Group 4 55

renewable raw materials that are then inserted in scientific and implemen- tation-oriented networks (e.g. The German Network on Life Cycle Inven- tory Data, the Factor X Network). These product line-related material flow analyses are to be linked at the macro-level with the economic area-related

analysis approach on which the Material Flows and Resource Management n

o

i Research Group (RG 3) is working. The aim is to use a standard indicator to

t

p map the resource productivity of economies and value chains. This is linked

m

u closely with the development of trend and political scenarios.

Research Field 1.2 Sustainable Product-Service Systems – B2B, B2C t s Research Field 2.2 Education, Communication and Learning Processes

n n In Research Field 1.2, “Sustainable Product-Service Systems — B2B,

e o C B2C”, numerous application-oriented sustainability management instru- m

e d ments that will accelerate customer integration (B2B) and consumer inte-

g n a u gration (B2C) are being developed for companies and sectors. With the n

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o help of the instruments developed, the various actors from individual areas i

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i u duction and use phase through to recycling or final disposal. The platforms l d i

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a i chains presents individual actors with the challenge of gathering informa-

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rends in the Production-Consumption-System i Sustainable system solutions Strategies for the diffusion of technologies Application-oriented sustainability management instruments Concepts for specific actors and age groups as well cross-group concepts T Generation of affluence processes Innovative job profiles

S t ing decisions based on it. Purely scientific analysis is not sufficient for this c d purpose. Rather, the research group uses methodical approaches for stake- A n

f a holder processes as a guideline for working out how such a process with

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i t example, the “High 5” guideline for drawing up sustainability reports in

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e SMEs (following the example of the Global Reporting Initiative) for the

j a o Sustainable Production and Consumption h European aluminium industry, a sustainability report supplement for

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s 2

u t assessment of the sustainability of products produced by biotechnological

c c

o Policy for more sustainable consumption Agenda-Setting New employment fields and effects through sustainability policies Resource policy and management

Resource Productivity Indicators MIPS- and technology data Resource-, energy- and land use efficiency szenario e means and “Nanologue”, an international dialogue on the social, ethical and F j o r legal implications of nanotechnological applications. P

s 2.1 u c Preview of Future Research Activities Fo Present increases in the price of key resources are an indication of grow- ing scarcity and point to future conflicts over access and distribution — all Research Field Policies for Sustainable Consumption and Production Research Field 1.1 Product Line-Related Material Flow Data this, moreover, against the background of a growing world population. As a result, strategies for increasing resource productivity and for the use of 56 Annual Report 2005/2006 Research Group 4 57 renewable raw materials are becoming a key factor for safeguarding jobs and for sustainable development. Against this background, the research group is developing target group-specific promotion and management instruments. In particular, these will boost the medium- and long-term potentials and system innovations of a competitive and innovative resource strategy. Starting with value chains, areas of need and infrastructures, these instruments will also take account of the relevant groups of actors, produc- ers and consumers at the national and international level. Consequently, the main focuses for the research fields will be as follows:

Research Field 1.1: Product Line-Related Material Flow Data • Continuation of work on the resource productivity indicator spanning the micro, meso and macro levels (cooperation with RG 3) • Consideration of further sustainability aspects in qualitative or quantita- tive measurement and assessment systems • Continuous updating and expansion of the MIPS and technology data held • Resource/energy/land use efficiency scenarios (technological, institu- tional, social innovations) at the micro and macro level (cooperation In the context of the second roundtable of the UN Decade of Education for Sustainable with Research Groups 1 and 3) Development on 14 November 2005 in the Landtag of Thuringia in the WI-project “KURS 21: Schools take on the future” was being awarded a prize. From left: Dr. Maria J. Welfens, Wuppertal Institute, Prof. Dr. Lenelis Kruse-Graumann, FernUniversitaet in Research Field 1.2: Sustainable Product-Service Systems — B2B, B2C , Carolin Baedeker, Wuppertal Institute. Photo: private • Development of cost- and resource-efficient product and service consumption systems and of sustainable system solutions for selected areas of need (cooperation with Research Group 3) Politically, the topic of resource productivity is becoming ever more • Strategies for the diffusion of technologies, know-how and instruments, widely diffused (cf. the EU resource strategy, the R3 concept from Japan especially for key actors along value chains and China’s Circular Economy initiative). In Research Field 2.1, “Policies • New and further development of application-oriented sustainability for Sustainable Production and Consumption”, the research group is devel- management instruments (including stakeholder interaction processes) oping sustainable strategies and measures for a German material efficiency policy. For example, it produced the design for the German programme to stimulate material efficiency, a diffusion programme aimed at small Focus Project 2: Changing Patterns of Action in Production and medium enterprises and business enterprise networks. In future, the and Consumption research group will be involved in shaping German material efficiency pol- The second focus project, “Changing Patterns of Action in Production and icy: Together with Research Group 3, Material Flows and Resource Manage- Consumption”, is aimed at drivers of change at the meso level of production ment, it was commissioned by the German Federal Ministry of Education and consumption patterns. Changes are promoted and anchored both by and Research to formulate an invitation to tender for a research programme policy, e.g. resource policy for companies, employment policy, sustainable on managing with fewer resources. In addition, at the interface of produc- consumption policy and integrated production-consumption policies, and tion and consumption, it was commissioned by the German Federal Minis- via education, communication and learning processes. try of Consumer Protection, Food and Agriculture to develop a design for 58 Annual Report 2005/2006 Research Group 4 59 a measurement and assessment system that employs a variety of incentives • Agenda setting in the subject area of sustainable production and — via policies, companies and households — to promote more sustainable consumption and development of approaches for an integrated policy consumption (e.g. introduction of a meta sustainability label). (cooperation with Research Groups 2 and 3) Research Field 2.2, “Education, Communication and Learning Proc- • New employment fields and effects through sustainability policies esses”, is concerned with education and with developing competences that • For value chains and fields of need: development of raw material, build- enable people to shape their world of life and work in a more sustainable ing material and material strategies and optimization of strategies for way and to face up to mounting requirements for qualifications and per- the use of renewable and non-renewable raw materials (e.g. in respect of formance on the labour market. In view of the national and international supply security, substitution, use of new technologies, etc., in coopera- debate on education one can assume that the importance of sustainability tion with Research Groups 1 and 3) education will increase significantly in future, both as a research topic and • Value chain-related and area of need-related concepts, criteria, strategies as a new occupational field. Based on the methodical approaches of lifelong and instruments for sustainable resource policy and management and organizational learning, in this research field we developed the game “Sarahs Welt” (sustainable styles of consumption and living as an educa- Research Field 2.2: Education, Communication and Learning tional project) and the “KURS 21” learning materials on value chains and Processes sustainability (www.kurs-21.de), as well as a job description for specialist consultants for sustainable management. We also examined the extent to • Development of information, communication, education and learning which families of different social origins anticipate values and norms of sus- concepts for specific actors (e.g. politicians, consumers, business) and tainability and resource consumption and pass them on to their children. age groups (e.g. children/youths, 50+ generation) as well as cross-group concepts • Empowerment approaches, linked with household, work and life Future Research Activities economy approaches A change towards sustainability in production and consumption patterns • Development of innovative job profiles is at the top of the political agenda both internationally (see the Marra- • Examination of non-sustainable and sustainable aspects and trends in kech Process launched by the United Nations) and nationally (see the coor- (socio-) cultural practice in the production and consumption system dination between and main focuses of the German Federal Environment and in the world of work (generation and modification of patterns of Ministry and the German Federal Environment Agency). However, in the thinking, action and behaviour and societal transformation processes, research group’s view this change will only be possible if sustainability as analysis of selected societal entities that impart culture) an informing and guiding principle enters into individual and social deci- sion-making processes and structures, thereby giving rise to new fields of In order to link economic doctrine approaches regarding employment pol- employment and innovative job descriptions. Thus approaches and meas- icy and growth theory with microeconomic approaches and consumption ures aimed at more sustainable patterns of production and consumption and lifestyle research, during the next three years the group will be sup- must also analyse and further develop education and communication proc- ported in its research by Professor Ronald Schettkat (University of - esses in conjunction with other scientific institutions. Consequently, the tal, Department of Economics) and Professor Gerhard Scherhorn. Profes- main focuses for the research fields are as follows: sor Schettkat will also be responsible for organizing a cross-research group economic research seminar to which economists of international repute will also be invited. Research Field 2.1: Policies for Sustainable Production and Consumption • Further development of approaches towards an efficient policy for more sustainable consumption (bottom-up approaches: mode of action and estimates of effect) 60 Annual Report 2005/2006 Research Group 4 61

Other Developments and Activities sit on the Future Council of the Land North Rhine-Westphalia, the advisory board of the German Material Efficiency Agency and the jury that awards The Sustainable Production and Consumption Research Group was closely the German material efficiency prize. In addition, the research group is involved in preparatory work for the opening of the UNEP / Wuppertal involved in working parties on methodology and enterprise-related mate- Institute International Centre on Sustainable Consumption and Produc- rial flows in the life cycle data network launched by the German Federal tion (CSCP) and works closely with the centre. The remits of the CSCP Ministry of Education and Research. and Research Group 4 complement each other excellently. While Research Since 2005, in conjunction with the Efficiency Agency of the Land North Group 4 is involved especially in exploring innovative approaches towards Rhine-Westphalia and with future e.V. the research group has published sustainable production and consumption that are tested in pilot projects, the quarterly magazine factorY — Magazin für Nachhaltiges Wirtschaften primarily in industrial countries, the CSCP concentrates on implementa- (print run 1,500 copies). This is targeted at business people, academics and tion-oriented support for the Marrakech Process and on further develop- ­politicians. ment of concepts that already exist and their transfer to developing coun- In addition, a post-doctoral, doctoral and diploma thesis strategy geared tries (orientation towards transfer/diffusion). to the group’s research fields (two post-doctoral, five doctoral, fourteen Members of the research group’s academic staff are involved in a wide master’s and diploma theses) makes it possible to conduct the basic research variety of social policy and economic processes at the national and inter- that the research group requires, to train a rising generation of academics national level that are pushing more sustainable development in produc- and to achieve the research group’s personnel development goals. tion and consumption. They are involved in numerous processes as expert witnesses and in groups of experts who are developing and supporting research programmes. Thus, research group staff participate in the round table discussions and several national working parties in connection with Typical project the United Nations Decade of Education for Sustainable Development and How to Assess Sustainable Consumption? Concept for a Measurement and Assessment System

Sustainable Consumption: for Politicians, Business People and Consumers Relevant Assessment Concepts for Active Participants

Relevant assessment The ten-year framework programme to promote sustainable patterns of production and consumption that was agreed in 2002 in Johannesburg Politics • Measurement und policy instruments:

ro level Setting and reviewing targets, formed the starting point for a host of diverse international and national c communication, national

Ma and international reporting activities. The goals of and responsibilities for this programme were dis- cussed at a United Nations-organized conference in Marrakech at which • Management level: Internal und external reporting, the Marrakech Process was launched. As part of this process, there will be benchmarking a need to develop target group-specific information systems to promote Companies • Process level: Instruments for optimizing sustainable production and consumption. production processes A study commissioned by the German Federal Ministry for Consumer • Product level: Instruments for designing and Protection, Food and Agriculture and conducted in 2005 by the Sustain-

level marketing products

ro able Production and Consumption Research Group links to this in a vari- c • Information at the product level: Mi ety of ways. The goal of this study was to devise the main features of a Labels, test results Households • Information relating to analysis measuring and assessment system for sustainable consumption based on of consumer behaviour: Indicators, sustainability report, existing scientific and political developments. To achieve this, national and benchmarking international concepts were examined and assessed and an expert dialogue was conducted. The design of the measuring and assessment system that 62 Annual Report 2005/2006 Research Group 4 63 was subsequently devised builds on existing approaches from which target ment. The focus is on exploring future markets in the field of building and group-specific modules can be developed. They are designed to take effect rehabilitation with timber, concentrating on three main elements. First, the by starting from national and international processes (such as the Global group will create an aid to orientation that can be used to classify and assess Reporting Initiative in the field of sustainability reporting) and providing various technological, social, economic and ecological developments in targeted support to the three target groups, that is, politics, companies and terms of their prospects for the forest and timber industry. A trend analysis consumers, along the road to sustainable development. will form the basis for drawing up possible scenarios for further develop- Politicians need a monitoring system for macroeconomic decisions that ments. A central task of the project is to develop a turnaround scenario describes the status quo and developments in trends towards sustainable for the use of timber in building. Second, it is pursuing practical projects consumption. Consumers need decision-making aids at the point of sale in four key fields aimed at a demand-oriented development of the timber and a simple information structure with aids to action that are suitable for market in building: everyday use. Companies want their efforts towards sustainable develop- ment to be visible to said target groups and to have them rewarded. The • Regional future markets for new building with timber group therefore suggests a modular measurement and assessment system • Future markets for the rehabilitation of old buildings comprising five instruments that is differentiated for these target groups, • New markets with innovative timber building materials as follows: • Comprehensive cooperation along value chains in craft timber construc- tion • A meta-sustainability label, TRIangel, at the point of sale and a • Sustainability check for households were developed for consumers. Here, Thirdly, research work is directed at the transfer of research findings. The political subsidy instruments and payback systems have potential; group is developing an Internet platform and a network of multipliers to • Political decision-makers can use the I-CON consumption index, which accompany the project. It plans to hold target group-oriented workshops shows the market shares of the TRIangel meta sustainability label; with companies and multipliers, to publish a book and to develop training • In addition, an instrument that takes effect in the medium to long term is and in-service training materials on the subject of sustained future markets GO 21, which highlights consumer trends and developments in relevant in the forest and timber industry. For further information, please see the product areas and builds on the Holzwende Internet platform at www.holzwende2020.de. • BALANCE basket of goods that represents a simplified statistical basket The project runs until the end of February 2008. Overall coordination is of goods and evaluates products or product groups by means of sustain- in the hands of Dr Kora Kristof. Our academic research cooperation part- ability indicators. ners are the Institute for Futures Studies and Technology Assessment (IZT), Wood Research Munich, the Steinbeis Research Institute for Renewable The sustainability indicators required to form the basis for these instru- Commodities and triple innova. Partners from practice are the Centre for ments will be developed by means of stakeholder dialogue. Energy Technology Brandenburg, Lais Holzbau, the Federal Working Party on the Renewal of Old Buildings and TECNARO GmbH.

Typical project Holzwende 2020plus

The forestry and timber industry is in an economic crisis situation that calls for structural change and an innovative reorientation towards sus- tainable development. Against this backdrop the “Holzwende 2020plus” project, which is funded by the German Federal Ministry of Education and Research, is examining innovation processes in forest and timber manage- 64 Annual Report 2005/2006  65

Cross Cutting Projects

Special problems in our society need special solutions. The Wuppertal Institute meets this challenge by integrating the research performance of all its research groups and by joining their scientists in the following three cross cutting projects: • Eco-Sufficiency and Quality of Life (direction: Dr. Manfred Linz) • Globalisation and Sustainability (direction: Dr. Wolfgang Sachs) • Integrated Sustainability Scenarios (direction: Dr. Manfred Fischedick) Hereafter, a summary of the state of affairs is given as well as the design for a possible continuation; the development of the cross cutting projects will be deliberated with the International Advisory Board.

Eco-Sufficiency and Quality of life Kick-off meeting of the multipliers network of The strategy of eco-sufficiency which means a measured use of our natural the Cooperative Project resources aims at limiting and reducing the overall use of resources and the “Holzwende 2020plus: resulting environmental burden. Sufficiency is going to be the complemen- Sustainable Future Markets for the Resource Timber” on tary strategy alongside the two other sustainability strategies: consistency 16 May 2006 in Wuppertal. (implementation of environmentally sound technologies) and efficiency (a Photo above: The network more efficient use of natural resources), as we are convinced that this third of multipliers intensely pillar is necessary to achieve sustainability. discusses how to make the Significant environmental damage is visibly increasing due to climate future markets accessible change; conflicts are emerging as a result of the world-wide increasing for timber in the construc- demand of important resources and especially of a dramatic rise energy tion field. demand. Against this background, the question of potential savings through less consumption gets a central dimension with regard to the conservation Photo centre: Weine of our natural resources. Genfors von Stora Enso Sufficiency perfectly fits to the “Plan of Implementation” adopted in (third from left) reports on Johannesburg in the year of 2002 which has sustainable production and business practise. consumption as a focal subject; and integrating sufficiency into the new European Nations strategy would help supporting the decoupling of eco- Photo below: The cooperat- ing partners in action: Prof. nomical growth and resource use. Following projects have been realized Dr. Gerd Wegener (TU within the cross cutting project eco-sufficiency and quality of life during München) and Dr. Kora the period 2005/2006. Kristof.

 Oscar Reutter based on texts of Manfred Fischedick, Manfred Linz and Wolfgang Sachs. 66 Annual Report 2005/2006 Cross Cutting Projects 67

The difference of sustainable growth Globalisation and sustainability Sufficiency pleading for a measured use of resources and a different idea of What kind of globalisation is sustainable? This is the guiding question of wealth is easily suspected of impeding economic growth and consequently the cross-cutting project. All contributions made by the project attempt to new employment. This is refuted by the Wuppertal paper no. 157 “What is explore the strained relationship between the rising trans-national econ- economy becoming then? About sufficiency, economic growth and unem- omy and the goals of public policy such as sustainability and justice. The ployment” (Manfred Linz, published in January 2006). The paper shows guiding hypothesis of the research work is that more trans-national fair- that sufficiency opens up new fields of employment to economy. Given that ness requires the transition to a resource and nature sound economy in developed economies like in Germany are likely to go on facing moderate the Northern industrialized parts as well as in the developing centres in the growth and hardly any prospects of new employment, sufficiency does not Southern and Eastern part of the world. In order to achieve such transi- have damaging effects on economy at all. A further study about the current tion it is important to shape global governance that gives priority to the political and social situation is in preparation. It is to examine the con- goals of sustainability and equity over the goal of economic efficiency. The sequences of an eco-sufficiency oriented development of production and final target of the project is to identify options for a sustainable design of consumption with regard to growth in industrialized countries (Gerhard globalisation. Scherhorn). Book “Fair Future” Sufficiency is profitable After the collaboration of more than 20 scientists from the institute since This ongoing partial project analyses how far the share of responsibility the summer of 2001, the results of the globalisation project have been sum- which enterprises assume for sustainable development has to be extended marized in a popular scientific book under the guiding theme environment claiming not only to limit raw material extraction and pollutant emission and trans-national justice. The book “Fair Future. Limited Resources and but also to integrate a restriction of their increase in production into their Global Justice” was published in May 2005 and has been discussed publicly corporate philosophy. The only case where sufficiency cannot be profitable during numerous events as well as in the media. A new edition was printed is when enterprises are forced by unsustainable competition to external- in September 2005 and 5,700 additional copies designed for the work of ize private costs. Wherever this is not the case, the enterprise’s yield and the Federal Central Agency for Political Education (bpb). Preparations are its positive external effects will be stabilized by restricting the turnover to underway to publish the book in English, Italian and Korean. the ecological and social limits of sustainability. Then, the consequence will be externalization of profit instead of externalizing costs (Gerhard The project “Eco-Fair Agricultural Trade” ­Scherhorn). Since April 2005, approximately 12 selected experts from industrialized and from developing countries work together to draw up a perspective for Ecological justice an alternative agricultural trade regime at the WTO. The collaboration of Commissioned by the Federal Environmental Agency, an explorative project the expert panel consists in five meetings over three days each and in pub- “Enhancement of conceptual considerations on ecological justice as part lishing policy papers. The project is completed by regional consultations of the social accounting in Germany” (project management: Georg Wilke) held in Senegal, Thailand, Brazil, USA, Europe and from 2007 on further is realized. The project shall contribute to establish the idea of “ecological groups ranging from agricultural representatives to trading diplomats will justice” in the scientific and public debate, to show connections between be involved. The project is organized and financed by the Heinrich Boell the debate of welfare and sustainability, and to achieve an acceptance of Foundation and Misereor and conducted by the Wuppertal Institute (Wolf- “environment” as a part of welfare. gang Sachs, Tilman Santarius). 68 Annual Report 2005/2006 Cross Cutting Projects 69

broad expertise, the Wuppertal Institute offers special possibilities to deal appropriately with the numerous and complex problems, among them are:

• technical expertise concerning possible energetic and material use of biomass; systematic approaches in comparative analyses regarding the efficiency of biomass use; analyses of infrastructures and scenarios dealing with alternating use of biomass and other strategic options (RG 1, RG 3) • discussion of biomass in the context of international climate policy and of instruments for climate policy (RG 2) • Integrated analyses of land use and material flows; broad life cycle based assessment of biomass use for material-energetic purposes (bio-material, Public announcements for lectures in Istanbul, Thailand and Florence. bio-fuel, bio-energy) with special regard to the aspects of land use abroad (RG 3, RG 4). • Determination of accurate overall catalysts and deduction of spanning solution strategies; an international network is to develop models to Ph.D.-Collegium assess quantitative scenarios (RG 3). • Strategies for raw and construction material and optimization of strate- In April of 2005, also in collaboration with Heinrich Boell Foundation, the gies for the use of renewable and non renewable primary products in Ph.D-Collegium “Globalisation, Environment, and the WTO”, (conducted value chains and for demand areas as for example food sector or timber by Dr. Wolfgang Sachs) started. The title “Globalisation, Environment, and industry (RG 4). the WTO” is also the subject for all dissertation projects and the theme for all workshops, seminars and excursions organized by the institute as a sci- The work which has already started in this context is to be intensified dur- entific supporting programme. Seven scholarship holders are financed for ing the next two years and the results are to be integrated into the ongoing three years; a part of them works within the institute’s research groups. The political discussion. dissertation colloquium is an important part of the dissertation programme Moreover, based on the awareness that there often exists an interactive at the Wuppertal Institute. relationship between measures and technologies which lead to the increase The question “What kind of globalisation is sustainable” has been the of resource and energy productivity, the research groups have elaborated subject in numerous lectures held in various countries; in many published all together a basic concept for a research programme regarding the topic articles and interviews; and in university lectures at the University of Kassel “strategies and implementation concepts to increase resource and energy and at the Schumacher College in England (Wolfgang Sachs). productivity”. Against this background, an integrated approach is needed that shows trade offs between the increase of resource and energy efficiency (including a further extension of renewable energies), synergy effects and Sustainability Scenarios win-win-options and that also presents optimized solutions. Within the cross-cutting project sustainability scenarios, biomass has become a new focal subject during the last year and scientists from all research groups are working at developing of a joint biomass strategy. This work is refers to a recently published biomass strategy of the European Commission and the announcement by the German federal government to plan the development of a biomass campaign. Parallel activities exist also on Federal and on State level (e.g. North Rhine-Westphalia). Due to its 70 Annual Report 2005/2006  71

Berlin Office

On 3 May 2004 the Wuppertal Institute opened its Berlin Office under the direction of Hermann E. Ott, who was previously director of the Climate Policy Division at the Wuppertal Institute. The Berlin Office is intended to provide the WI with a presence in the German capital. It shall further support scientifically based policy advice as well as increase the Institute’s visibility to the administration, foundations and companies. The Berlin branch is partly funded by the Friends of the Wuppertal Institute society and is otherwise reliant on third party funding of projects. On 31 October and 1 November 2005 the Berlin Office organized a ­climate conference and a workshop in Tokyo under the title “Climate Policy 2005 and Beyond: Japanese — German Impulses”. This event formed part of the “Year Germany in Japan 2005/2006” and was funded by the Ger- man Federal Ministry for the Environment, Nature Protection and Reac- tor Safety (BMU), the Japanese Environment Ministry and the Ministry for Science and Research from the state of North Rhine-Westphalia. At the conference and workshop, experts presented and discussed the experiences of German, European and Japanese climate policy and the opportunities for civil society to engage in meaningful climate protection. The documen- tation was published in June 2006. Two follow up projects are in prepara- tion and a first German-Japanese Workshop regarding emissions trading is The Wuppertal Report “Fair Future” prompted a discussion meeting on 22 November 2005 arranged for early 2007. in the auditorium of the Wuppertal Institute. Dr. Stefan Feldhaus, responsible for public relations at Siemens AG, and Dr. Wolfgang Sachs, head of the team of authors, discussed about the chances of realizing the approaches presented in “Fair Future” to a global envi- ronmental and economic policy, which is committed to resource justice. The journalist and author Marianne Wollenweber moderated the discussion.

In cooperation with the Japanese institute IGES the Berlin office arranged the symposium “Climate Policy 2005 and beyond”. On 31 Octobe and 1 November 2005 researchers and decisionmakers from Japan and Germany gathered in Tokyo to discuss about German and European concepts in climate protection and their applicability in the Japanese political context. 72 Annual Report 2005/2006 Berlin Office 73

The project entitled “South-North Dialogue — Equity in the Green- work are the heads of a variety of Berlin branch offices for organizations house” was carried out for the Federal Ministry for Economic Coopera- such as the Öko-Institute, the Institute for Ecological Economics Research tion (BMZ) and the Gesellschaft für technische Zusammenarbeit (GTZ). (IÖW), the Hertie Foundation, the National Wind Energy Alliance, Green- Along with Research Group II and in partnership with researchers from peace and the World Wide Fund for Nature (WWF). fourteen different countries a proposal on how developing nations could The Wuppertal Institute has been present with a variety of events in the be incorporated into climate change commitments was prepared (www. German capital. Most recently, in April 2006, the Berlin Office organized south-north-dialogue.net). From the end of 2004 up through early 2006 three events with Amory Lovins (Factor Four; Natural Capitalism), includ- the proposal was presented and discussed with climate policy diplomats ing a discussion with 150 attendees on the Berliner Gendarmenmarkt. The at regional workshops in Africa (Dar-es-Salaam), Asia (Jakarta) and Latin Office is also organizing a climate conference for 28/29 September 2006. America (Mexico City). Further activities are in preparation. Arranged in collaboration with the WWF, the European Climate Forum The Berlin Office, as of the beginning of 2006, is participating ina and the Heinrich Böll-Foundation, this conference will provide latest infor- project to advise the German Environment Ministry regarding the EU and mation to 300–400 guests about New Targets, New Policies, New Technolo- G8 presidencies for 2007. Together with the World Economy gies and New Alliances in the world of climate change. The WI Research Institute (HWWI), Perspectives GmbH and iku-GmbH the WI-Berlin will Groups I and II are co-organizing workshops at the conference. The Berlin be undertaking brief analyses of international climate policy and its impli- Office will edit a variety of scientific articles presented on the conference’s cations for German economic players. The consortium will also devise a website (www.kyotoplus.org), which will then be compiled into a book publicity strategy and organize two workshops or conferences with stake- available in early 2007. holders from business and civil society. Additionally, Hermann E. Ott will Since the beginning of 2005 the Berlin Office, in association with the provide advice to the German Environmental Ministry on an ad-hoc basis. Heinrich Böll Foundation, has been hosting so called “KyotoPlus Dinners.” The Berlin Office furthermore conducts an evaluation of an internal cli- These Dinners bring together in an informal atmosphere some 20 to 25 mate competition of the “Naturfreunde” (Friends of Nature) in Germany. people, including high-ranking guests from politics, economics, sciences In association with the Naturfreunde the Berlin Office constructed a set of and civil society for talks regarding international climate policy (mostly criteria, which will be used by the Berlin Office, the staff of Naturfreunde in English). The topics of the last two dinners were “Expectations for and an external jury to evaluate the submissions to the contest. COP 11 and COP/MOP 1 in Montreal: The Canadian Perspective” (with The Berlin Office’s Tilman Santarius, along with Wolfgang Sachs, is Jean Boutet, Climate Advisor to the Canadian Environment Minister on working on a project in the area of sustainable governance entitled “Eco- 26 October 2005) and “Profitable Climate Protection” (with Amory Lovins Fair Trade Dialogue”. Misereor and the Heinrich Böll-Foundation commis- on 27 April 2006). sioned this study on international agricultural trade that runs from Janu- ary 2005 to December 2006. In a dialogue with experts from the South the current conditions of the trade in agricultural goods will be discussed and the possibilities for a fair restructuring of the international trade system explored. The results of the project will be concrete proposals for fair inter- national agricultural trade (more at www.ecofair-trade.org). The Berlin Office is also lending support to Research Group I for a special project for the Federal Environmental Agency (UBA) regarding ecological justice. Since its opening, the Berlin Office has intensified its contacts to public and private investors and established a multitude of associations with these institutions. Many talks and meetings have been held with around 200 cur- rent and future investors and partners. With the purpose of furthering the benefits of networking, a specific network has been established called the Berlin Offices Network. Meeting regularly under the auspices of this net- 74 Annual Report 2005/2006  75

The Ph.D-programme

Since the spring of 2005, the Wupprtal Institute offers a systematic pro- gramme to support and qualify Ph.D students (directed by Dr. Oscar Reut- ter, Research Organization and Quality Control). Around 20 young future scientists coming from such diverse disciplines as biology, energy and proc- ess engineering, environmental engineering, forestry, geography, geology, landscaping, physics, political science, urban and regional planning, social sciences, law, industrial engineering or economics are doing research work at the institute in the context of their dissertations. Based on these projects, together with co-operating universities (at the moment from Aachen, Bamberg, Berlin, , , , -, Flensburg, Greifswald, Kassel, , Osnabrück und Wuppertal) the Wuppertal Institute aims at intensifying its academic anchoring and at strengthening its disciplinary expertise in transdiscipli- nary research work. University teachers supervise the doctoral theses and Amory Lovins (RMI), State Secretary Matthias Machnig (Federal Ministry of Environ- the co-operating universities are responsible for the conferral of the doc- ment) and Hermann E. Ott (WI). On 27 April 2006 Amory Lovins, President of the Rocky torates. Mountains Institute, Colorado/USA, presented his book “Winning the Oil Endgame” at The doctoral theses are elaborated at the Wuppertal Institute based on the Berlin-Brandenburg Academy of Science. The subsequent discussion with Frith Kuhn selected topics of application oriented sustainability research within the (Bündnis 90/Die Grünen) was directed by Hermann E. Ott. Photo: Karsten Sach research work of the research groups and cross-cutting projects; they are individually supervised by senior scientists and the president of the insti- tute. Whenever possible, the institute tries to realize dissertation projects in the scope of current third-party funded projects. In order to regularly discuss intermediate results and work related prob- lems of current dissertation projects the Wuppertal Institute has organized dissertation colloquiums for different groups of doctoral students:

• In the dissertation colloquium “Sustainable Energy Supply”, conducted by Dr. Manfred Fischedick, current dissertation projects with energy as a focal point are discussed every six months. • In the dissertation colloquium “Globalization, Environment and the WTO”, conducted by Dr. Wolfgang Sachs in collaboration with the Heinrich-Boell-foundation, seven subject oriented and connected dissertation projects are discussed in the frame of monthly one day workshops, a two day seminar once a year and during joint excursions. • In the dissertation colloquium “Methods of application oriented sustain- ability science”, conducted by Dr. Oscar Reutter, two dissertation projects 76 Annual Report 2005/2006 The Ph.D-programme 77

are presented about once a month in order to review arising methodical promote energy efficiency on the demand side in liberalised power and questions in an overall and interdisciplinary discussion. gas markets: Criteria based comparison of political general conditions); conferral of a doctorate on June 21th 2006 at Freie Universität Berlin Dissertation projects at the Wuppertal Institute are part privately financed, (Otto-Suhr-Institute for political science; PD Dr. Lutz Mez, Prof. Dr. partly supported by project funds of the institute and partly funded by exter- Peter Hennicke). nal acquisition of doctoral scholarships. Therefore, the Wuppertal Institute co-operates with foundations dedicated to support future scientists. The Moreover, two postdoctoral lecture qualifications have successfully been following foundations are currently promoting dissertation projects real- accomplished: ized at the Wuppertal Institute: • Prof. Dr. Raimund Bleischwitz (RG Material Flows and Resource Management); professorial dissertation: “Gemeinschaftsgüter durch • Vera and Georg Spahn Foundation Wissen generierende Institutionen — Ein evolutorischer Ansatz für die • Stemmler Foundation Wirtschaftspolitik” (Provision of collective goods by knowledge creating • Heinrich Boell Foundation (www.heinrich-boell-stiftung.de) , institutions. An evolutionary approach for economic policy). Postdoc- • Hans Boeckler Foundation (www.boeckler.de) toral lecture qualification in economics on 23 May 2005 at the faculty • Deutsche Bundesstiftung Umwelt (www.dbu.de) business sciences at the University of Kassel. • Deutscher Akademischer Auslandsdienst (German Academic Exchange • PD Dr. Uta von Winterfeld (RG Sustainable Production and Consump- Service) (www.daad.de) tion); professorial dissertation: “Naturpatriarchen — Geburt und Dilemma der Naturbeherrschung bei geistigen Vätern der Neuzeit” In the meantime, there is a growing number of external applications of (Patriarchs of Nature. Creation and dilemma of nature domination in young German and foreign scientists applying for a place in the doctoral the workings of spiritual leaders of modern times). Postdoctoral lecture programme of the Wuppertal Institute. During the reporting period sum- qualification in political science on 15 February 2006 at the faculty politi- mer 2005 to summer 2006, the following dissertations have successfully cal and social science at the Freie Universität Berlin. been accomplished: In order to stimulate current dissertation projects and third-party funded • Dr. Bettina Wittneben (RG Energy, Transport and Climate Policy); projects, a newly installed “Academic colloquium” will to present all finished dissertation: “Institutional change in the transfer of climate-friendly doctoral theses and professorial dissertations to the whole institute. technology”. Conferral of a doctorate on 23 July 2005 at the University Finally, eight young scientists at first without doctoral ambition are of Cambridge (Faculty Judge Institute of Management Studies; Prof. Dr. currently being qualified in a newly developed 18 month “trainee-on-the- Nelson Phillips). job-programme”. Instructed by senior scientists, the young scientists are to • Dr. Christian Jungbluth (RG Future Energy and Mobility Structures); participate as “junior research fellows” in key areas of the scientific project dissertation: “Kraft-Wärme-Kopplung mit Brennstoffzellen in Wohnge- work at the Wuppertal Institute such as project acquisition, project hand­ bäuden im zukünftigen Energiesystem” (Cogeneration with fuel cells in ling, publications or lectures. residential buildings in a future energy system). Conferral of a doctorate on May 9th 2006 at the Rheinisch-Westfälischen Technischen Hochs- Oscar Reutter chule Aachen (faculty mechanical engineering; Prof. Dr.-Ing. Detlef Research Organization and Quality Control Stolten, Prof. Dr. Peter Hennicke). • Dr. Stefan Thomas (RG Energy, Transport and Climate Policy); disser­ tation: “Aktivitäten der Energiewirtschaft zur Förderung der Energie­ effizienz auf der Nachfrageseite in liberalisierten Strom- und Gasmärkten europäischer Saaten: Kriteriengestützter Vergleich der politischen Rahmenbedingungen” (Action implemented by the power industry to 78 Annual Report 2005/2006 Centre on Sustainable Consumption and Production (CSCP) 79

Photos above from left to right: Klaus Töpfer, Harald , Eckhard Uhlenberg and The Ceremony for the Foundation of the UNEP / Wuppertal Institute Michael Stückrath, Michael Kuhndt. Collaborating Centre on Sustainable Consumption and Production (CSCP) Photo below: In a celebratory atmosphere, the memorandum of foundation was signed by Peter Hennicke, President of the Wuppertal Institute and Klaus Töpfer, Executive Director of UNEP, surrounded by supporters and sponsors. From left to right: Harald Bayer (City “We should not be afraid of everyone in this world becoming a consumer. The poor need of Wuppertal on behalf of the Mayor), Prof. Dr. Klaus Töpfer, Monique Barbut (Director more food and shelter. They need to have the capabilities to decide for themselves about of UNEP Paris), Jochen Reck (Chairman of the Committee for Economy, Medium-sized their material and immaterial well being, just as we can do”, with these words Professor Businesses and Energy in the State Parliament of North Rhine-Westphalia), Minister Eck- Dr. Klaus Töpfer opened the Collaborating Centre on Sustainable Consumption and Pro- hard Uhlenberg (Ministry for the Environment and Nature Conservation, Agriculture and duction (CSCP), co-founded by the UNEP and the Wuppertal Institute. Consumer Protection of North Rhine-Westphalia), Michael Kuhndt (Head of CSCP), State Secretary Dr. Michael Stückrath (Ministry for Innovation, Research and Technology) and Prof. Dr. Peter Hennicke. Photos: Andreas Fischer 80 Annual Report 2005/2006  81

The guests from politics and the economy lis- Centre on Sustainable tened to the greeting Consumption and words and good wishes on the part of the Wup- Production (CSCP) pertal Mayor Peter Jung (represented by Mr. Harald Bayer), State Secretary Dr. Michael Stückradt, Ministry of The Wuppertal Institute and the United Nations Environment Programme Innovation of North Rhine-Westphalia, Dr. (UNEP) jointly founded the Centre on Sustainable Consumption and Pro- Hans-Peter Schipulle, duction (CSCP) in 2005 to establish an international institution for scien- Federal Ministry for tific research, outreach and transfer activities on sustainable consumption Economic Cooperation and production (SCP). The CSCP is a member of the international family and Development, and of UNEP collaborating centres and supported by the German Federal Min- Dr. Hendrik Vygen, istry for Economic Cooperation and Development, the Federal Ministry Federal Ministry for the for the Environment, Nature Conservation and Nuclear Safety, the North Environment. . Rhine-Westphalia Ministry for Environment, Agriculture and Consumer Protection and the Business and Employment Support Agency, Wuppertal.

At the press conference that followed an atmos- Vision and mission

phere of anticipation  and ease filled the room. The Centre contributes to the Johannesburg Plan of Implementation by  Many journalists used supporting the UN led “Marrakech Process” , a 10-year framework of pro- the opportunity to make grammes to promote sustainable consumption and production (SCP), that a personal interview. seeks to “promote social and economic development within the carrying Photos: Andreas Fischer capacity of ecosystems by addressing and, where appropriate, delinking economic growth and environmental degradation through improving effi- ciency and sustainability in the use of resources and production processes and reducing resource degradation, pollution and waste”. The CSCP provides scientific support to activities undertaken by UNEP and other organizations in the field of SCP and supports the integration of environmental, social and cultural concerns into public, private and civil society groups. CSCP also develops, tests, implements and moni- tors concrete projects, especially in developing countries, to enable these countries to leapfrog to sustainable consumption and production patterns using life cycle thinking and a human development perspective as guiding ­principles.

 http://www.un.org/esa/sustdev/documents/WSSD_POI_PD/English/POIChapter3.htm  See http://www.un.org/esa/sustdev/sdissues/consumption/Marrakech/conprod10Y.htm 82 Annual Report 2005/2006 Centre on Sustainable Consumption and Production (CSCP) 83

Sustainable Consumption Marrakech Process and Production for National 1 and Local Development Organizing regional Building Implementing Monitoring and consultations regional strategies concrete evaluating progress in all regions to and implementation programmes and and exchanging Linking SCP to poverty alleviation Policy Reinforcement identify needs and mechanisms with projects information for Environmentally priorities for sustain- regional and national on the regional, and experience Sound and Socially able consumption ownership; national and local at the international Human Development Responsible Economic and production levels; level. through the Market Development in China 10-year framework of programmes in support of regional and national initiatives to accelerate the shift towards sustainable consumption and production Marrakech Task Force Expert Conference Environmental Governance Standards Source: Michael Kuhndt, CSCP, Wuppertal, 2006 Resource efficiency in for Development an industry sector Finance Institutions

Energy Efficiency Compendium of Eco- Strategic priority areas booklet for the CSD-14 efficiency policy measures Product Panel on an Guidance Manual for Efficient/Responsible The three strategic priority areas of the CSCP (see Figure page 83) are Energy Efficient Product Retailers Entrepreneur website derived from the discussions taking place under the Marrakech Process and reflect recent developments in the SCP debate. Changing Individual Encouraging and Institutional Patterns Responsible Industrial 2 of Consumption 3 Development Sustainable Consumption and Production for National and Local Development Source: Michael Kuhndt, CSCP, Wuppertal, 2006 To deal with the socio-economic consequences of progress towards SCP, especially its contribution to human development and poverty reduction in developing countries, the CSCP works on making societal, public sector procurement. The CSCP has developed a conference background paper on and private sector actors aware of SCP policies and programmes and their sustainable energy consumption and a best practice information brochure related positive effects on human development in local and global commu- on efficient energy consumption. It is currently drafting a guideline for nities. In this area the CSCP has developed (a) a guide for national policy retailers to assist with promotion of sustainable consumption. CSCP will makers on linking SCP to poverty reduction, (b) a policy framework study also assemble a product panel to promote energy-efficiency in the public and a capacity building programme for local policy makers in China, (c) a sector. manual to assist National Cleaner Production Centres to link their services to socio-economic goals and (d) a guidance document providing support Encouraging Responsible Industrial Development for mainstreaming SCP into activities by development finance institutions in Asia. CSCP promotes responsible industrial development through working with public and private actors. For public actors, CSCP develops policy frame- works and flexible policy interventions to promote sustainable production Changing Individual and Institutional Patterns of Consumption taking into account businesses capabilities, needs and motivations. This CSCP works on individual and institutional patterns of consumption by includes an Eco-Efficiency Policy Compendium for the German Develop- conducting research on international trends and patterns of consumption ment Co-operation Agency, Deutsche Gesellschaft für technische Zusam- and designing intervention strategies to promote sustainable lifestyles and menarbeit (GTZ), as well as training programmes for policy makers. For 84 Annual Report 2005/2006  85 the private sector, CSCP aims to improve companies’ understanding of the Economic Development value of SCP and awareness of the underlying business case, example are: “Doing SMART Business”, which is a tool targeting small and medium sized enterprises and a project on resource efficiency in global supply chains from a demand perspective which targets larger companies. General Information

The Wuppertal Institute began its work in 1991 as a limited liability com- Team and network pany (GmbH). The sole owner is the Land of North Rhine-Westphalia. The CSCP Team is composed of experts from different nations and with According to the company statute the Institute’s mission is to promote diverse backgrounds that have significant experience in policy develop- measures and initiatives to protect the climate, improve the environment ment, scientific research, business management and advocacy services. The and save energy, serving as an interface between scientific knowledge and Centre exchanges experiences with partners in both developing and devel- practical implementation of that knowledge. To realize these goals the Insti- oped countries, with capacity building and training as an integral part of tute aims to integrate external scientific and economic expertise, to utilize it its programmes. and to combine different disciplines in order to translate research findings You will also find further information including profiles of the research into strategies and initiatives to protect the climate and the environment. and implementation projects on http://www.scp-centre.org. Also, feel free In accordance with its company statute and mission, the Wuppertal to contact us at ++49 -202 45 95 8 -10, [email protected] or visit us at Institute is a non-profit company. It does not aim to maximize profit, but our office. rather to break even. Because of its legal status and the volume of money involved the Wup- Michael Kuhndt pertal Institute is subject to the provisions of the German Commercial Head of CSCP Code and prepares accounts in compliance with the regulations for large corporations. Its annual financial statements are audited by a firm of inde- pendent auditors.

Result and Earnings Position in 2005 After implementing strict economies in all units, the Institute posted net earnings of EUR 56,000 for the year 2005. Funding provided by the Land North Rhine-Westphalia in 2005 totalled EUR 2,952,000, approximately the same as in the previous year (2004: EUR 2,947,000). Overall performance in the project segment (sales revenues and change in the inventories of work in progress) amounted to EUR 5,318,000 in 2005, an increase of EUR 82,000 year on year (2004: EUR 5,236,000). Despite cuts in the number of staff employed at the Institute, total per- sonnel expenses increased by Euro 226,000 year on year, toEUR 5,166,000 (2004: EUR 4,940,000). This was due to general wage increases and severance payments. Material expenses reflect expenditure on work commissioned from third parties. As a rule, this consisted of research, development and consulting services necessary for carrying out projects. Material expenses also include monies held temporarily for channelling to other project part- ners. Material expenses in 2005 totalled EUR 1,748,000, considerably less 86 Annual Report 2005/2006 Economic Development 87

Profit and Loss Statement Ratio between personnel costs and income from projects

I E I E Mio. EUR 2005 2004 EURO EURO EURO EURO 6 1. Institutional funding from the Land 5 North Rhine-Westfalia 2,952,300.00 2,946,800.00 personnel costs for scientific staff 2. Fees for projects under- 4 taken including changes income from projects in inventory 5,318,165.18 5,236,355.26 3. Other operating 3 income 131,797.85 8.402.263,03 177,344.62 8,360,499.88

4. Material expenses, 2 cost of purchased services –1,748,018.24 –1,930,837.91 1 5. Personnel expenses –5,166,195.11 –4,940,352.11 6. Depreciation –93,577.17 –103,972.53 0 7. Other operating 2002 2003 2004 2005 2006 Plan expenses –1,220,183.82 –1,269,867.48 Ratio between personnel costs and income from projects 8. Result from ordinary activities 174,288.69 115,469.85 9. Earnings from an increase to 2006 the Wuppertal Institute had to undertake extraordinary efforts to in the amount receivable cope with this cut of more than EUR 1.2 million in basic funding. Conse- from the shareholder –118,632.00 12,066.00 quently, in parallel with its research realignment, for the past few years the 10. Net earnings fo the year 55,656.69 127,535.85 Wuppertal Institute has been pushing ahead proactively with the necessary economic transformation. Due largely to a major and growing proportion of third-party fund- ing, in its financial and organizational structure the Wuppertal Institute is than in the previous year (2004: EUR 1,931,000). This is because the Wup- increasingly assuming the profile of a market-oriented research undertak- pertal Institute is the lead partner in various projects and channels mon- ing along the lines of a Fraunhofer Institute. ies to other project partners. A year-on-year reduction of EUR 43,000 was We are implementing structural change on two levels. First, basic fund- achieved in other operating expenses such as the cost of premises, books ing is giving way to project funding. Second, we are cutting non-scientific and journals, communications, etc. activities to the minimum operational requirement. The ratio of personnel expenses to income from projects shows that while costs for scientific staff have remained more or less stable, income Transformation of Economic Structure from projects has risen considerably. Per capita project income (based on In 2003, the government of the Land North Rhine-Westphalia at the time a fulltime workplace of a scientist) has risen from EUR 62,000 in 2002 to resolved to cut institutional funding to the Wuppertal Institute by a total almost EUR 116,000 in 2006. This is clear evidence of efficiency improve- of 30 percent in the period from 2003 to 2006. As a result, the Institute was ments in recent years on the scientific side. compelled to transform its economic structure in good time. Financial restructuring demands highly cost-effective and lean organi- While institutional funding in 2002 totalled EUR 3,533,000, by 2006 zational structures that are designed primarily to support the canvassing this figure had fallen to EUR 2,307,000. In the four-year period from 2002 and processing of projects funded by third parties. This has signified a con- Stiftungen 5 % 88 AnnualReport2005/2006 EconomicDevelopment 8

Land NRW Developments in the projectSonstige area in 20059 % can also be viewed as very sat- Development of personnel costs from 2002–2005 isfactory. Third party funding24 % is secured against tough national and inter- Mio. EUR national competition. The stable volume of project funding over the years 3,5 vouches for the Institute’s competence and competitiveness,BMBF for the qual- 23 % ity of scientifi c work produced and for recognition by the ministries, local 3 EU scientific staff governments, other public19 institutions,% business undertakings, NGOs and international organizations we worked for. 25, BMU non-scientific staff Our main clients last year wereBMWA the undGerman UBA Federal Ministry of Educa- 8 % 12 % 2 tion and Research and the European Commission in Brussels. In addition, assistants the Wuppertal Institute undertakes numerous projects for different North 1,5 Rhine-Westphalia government ministries and for other public and private sector clients. 1 The chart below shows the proportions of sales revenues earned from our main clients in 2005 (for third-party-funded projects). 0,5 Of total sales revenues, 79 percent were earned from public-sector and 21 percent from private-sector clients such as companies, industry associa- 0 2002 2003 2004 2005 tions and foundations. International projects accounted for 31 percent of sales revenues and national projects for 69 percent. Development of personnel costs from 2002–2005 siderable reduction in the capacity of administrative services and service units compared with previously, combined with a simultaneous increase Compostion of sponsors in effi ciency. The development of personnel expenses shows that we have been quite successful in this area. Costs for non-scientifi c staff have declined continu- other income 24 % 23 % Federal Ministry of ously in recent years while costs for scientifi c staff have remained more or Education and less stable. Research

Development in third-party funding in 2005 foundations 5 %

19 % EU Despite the intensifying pressure on public budgets (of local authori- 9 % ties, central and regional government, the EU) and those of other clients Federal state NRW and the associated reduction in research funding in general, the Wup- 8 % pertal Institute’s income from third-party funding has increased steadily 12 % Federal Ministry of in recent years. In 2005, the Institute processed more than one hundred Economics and Federal Ministry for the Environment, projects funded by third parties, resulting in gross performance amounting Technology Nature Conservation and Nuclear Safety to roughly EUR 5,318,000. Income from projects funded by third parties & Federal Environment Agency accounted for 64 percent of total income in 2005, while income from insti- tutional funding accounted for just 36 percent of total income that year. Compostion of sponsors The Institute anticipates a further increase in the volume of third-party funding in 2006. 90 Annual Report 2005/2006 Economic Development 91

Income from basic funding from the Land North Rhine-Westphalia compared with project income Composition of the personnel A comparison of total third party income with basic funding from the Land scientific staff shows that in recent years third party funding has exceeded Land funding by non-scientific staff a wide margin. The large proportion of research projects secured through 145 142 138 competition again underlines the Wuppertal Institute’s high standard of student / scientific excellence. It also vouches for the highly intensive and successful canvassing assistants and the quality of research the Institute has undertaken in recent years. 2003 2004 2005

Composition of the personnel The workforce composition has changed in recent years. While the Ratio between grants from the Federal State and income from projects number of scientists has remained constant, the number of non-scientific Mio. Euro staff has been reduced. Cuts in institutional funding from the Land North 6 Rhine-Westphalia have placed the Wuppertal Institute in a changed situa- income from projects tion that makes the canvassing of new projects a central prerequisite for its 5 grants from the Federal State NRW long-term economic survival. To achieve this, the Institute needs employ- ees with appropriate skills and experience who are motivated to assume 4 medium or long-term responsibility for canvassing projects. The Institute 80needs to retain appropriately qualified employees on a long-term basis. During 2005145 we drew up142 transparent criteria138 for the targetscientific structure staff of 3 70contracts for scientific staff. Since well over half our staff is resident in Wuppertal, a positivenon-scientific conclu staff- 60 2 sion can also be drawn from the regional point of view. 50 student / scientific 1 Brigitte Mutert assistants 40Commercial Director 0 1991 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 2000 ’01 ’02 ’03 ’04 ’05 2006 30

Ratio between grants from the Federal State and income from projects 20

10 Staff development 0 2003 2004 2005 The trend in the number of staff employed by the Institute shows that fewer personnel were employed in 2005 than in previous years. On the balance-sheet date, 31 December 2005, 138 staff were employed at the Wuppertal Institute (2004: 142). Of these, 68 were scientists, 30 non- scientists and 40 student assistants or research assistants. The proportion of female staff was 48 percent.  93

Meetings

On 27 October 2005 the virtual handbook “Eventkultur.Lab”, which summarizes the results of the project “Event Culture and Sustainability”, was presented in Berlin. Approximately 50 marketing and commu- nications experts from economy, politics and science discussed with the project manager Rainer Lucas, his team and the project partners. Photos: Dorle Riechert 94 Annual Report 2005/2006 Meetings 95

Photo left: The State Secretary at his speech. Photo right: Rolf Disch expressed his grati- tude for receiving the first prize.

The Wuppertal Energy and Environment Award 2005

The Wuppertal Energy and Environment Award was presented for the 4th time. For the first time the Wuppertal Institute arranged the contest of ideas in cooperation with the Energieagentur North Rhine-Westphalia. On 24 November 2005 State Secretary Dr. Michael Stückradt, Ministry of Innovation, Science, Research and Technology of North Rhine-West- phalia, handed out the awards to the laureates in the historical townhall at the Johannisberg in front of approximately 150 invited guests. Volker Angres, head of the ZDF environment editorial office, moderated the ceremonial act. The aim of the competition was to moti- vate young researchers, developers and initiators to send in their future-oriented, energy efficient but also practical contributions to be evaluated by a jury chaired by Prof. Dr. Peter Hennicke. Altogether 108 applications were turned in. The jury, which was impressed by Centre left: In the course of the project presentation the variety of ideas and the high quality of the applications, assigned two first prizes and in the Majolika hall Franz Josef Schulte inspects the one third prize. One first prize went to the engineer Franz Josef Schulte and his team from “One-Wire-Bus” by the architect Michael Vannahme Olsberg for the development of a boiler driven steam engine for the purpose of electricity from Dortmund (right). Centre right: The management production. Another prize went to the architect Rolf Disch for the conception of the energy consultant Hartmut Happich from Wuppertal (Head facade of the “Sonnenschiff” (service center) in Freiburg. The third prize went to Frank of the Innovation Advisory Council) and the designer Meyer zur Heide from Detmold for his funnel to re-extract warmth from sewage. Dorothea Hess, Bad Homburg v.d. Höhe, talking. Photo above: from left to right: Matthias Knopf, Prof. Dr. Norbert Hüttenhölscher, Amand- ine Tupin, Franz Josef Schulte, Dorothea Hess, Frank Meyer zur Heide, Michael Vannahme, Prof. Dr. Peter Hennicke, Seyed Taghi Mohseni, Dr. Michael Haug, Rolf Disch and State Secretary Dr. Michal Stückrath. Photo below: To the right of Harald Bayer, Head of the Wuppertal Environment Division, the two Members of the Bundestag Jürgen Kucharczyk and Manfred Zöllmer. Photos: Jörg Lange.

Prof. Dr. Peter Hennicke (right), State Secretary Dr. Michael Stückradt, Prof. Dr. Norbert Hüttenhölscher (left) in the audience watching the welcoming speech by the Head of the Wuppertal Environment Division Harald Bayer. 96 Annual Report 2005/2006 Meetings 97

On 2 June 2006 the conference “Education for Sustainability: Factors and Strategies for Suc- cess” took place in Warsaw in the context of the German-Polish Year 2005/2006. In the panel from left: Anna Kalinowska, Center for En- vironmental Research, University of Warsaw, Dr. Maria J. Welfens, Wuppertal Institute, Dr. Andrzej Kassenberg, Institute for Sustain- able Development, Warsaw, Lech Plotkowski, National Fund for Environmental Protection and Water Management, Warsaw, Dr. Christa Liedtke, Wuppertal Insti- tute, Alexander Leicht, German UNESCO-Commission. On 7 March 2006, the workshop “Production and consumption — together for a sustain- Photo: Welfens able development” took place at the “Ökostation am Berufskolleg ” in Wuppertal. From right: Dr. Christa Liedtke, Carolin Baedeker, Holger Rohn, Wuppertal Institute and “König Kunde ruiniert sein Land Prof. Dr. Gerhard Scherhorn during a discussion. Photo: Michael Ritthoff — Wie der Verbraucherschutz am Verbraucher scheitert. Und was dagegen zu tun ist.” (“King cus- tomer ruins his country — How consumer protection fails because of the consumer. And what can be done about it.”) Bernhard Pötter, author of the above mentioned book and taz-journalist, presented his book in a forum event in the auditorium of the Wuppertal Institute on 1 March 2006.

On 3 March 2006 the Wuppertal Institute and Cinemaxx Wupper- tal held a discussion meeting titled “Weltmacht Energie” following the showing of the movie “Syri- ana” at the Cinemaxx cinema. The political thriller “Syriana” is about intrigue and corruption in the international oil business. Meeting of the transnational partners of the EU-project “Auf KURS in die Zukunft” (“On target for the future”) in Wuppertal on 13 March 2006. The ESSAY (“Education for Sustain- ability: Access Adaptation for Youth”) -meeting was attended by guests from Italy, Sweden and the Netherlands. 98 Annual Report 2005/2006 Meetings 99

With a colloquium on the culture of sustainability the Wuppertal Institute expressed its gratitude to Prof. Dr. Gerhard Scherhorn on 7 March 2006 for nine years of excellent cooperation. Prof. Dr. Scherhorn had put down his administrative functions at the begin- ning of the year. However, he will continue to be of assistance on a freelance basis. Speakers were Prof. Dr. Lenelis Kruse and Prof. Dr. Gerhard Scherhorn. The members of the Research Group “Sustainable Production and Consumption” bid their deputy head farewell with a song. Photos: Michael Ritthoff

On 20 and 21 February the kick-off workshop for the EU-Project “Energy+pumps” took place at the Wuppertal Institute, a project that aims at launching the highly efficient “Factor Four Pump”. Back row from left: Lars Kirchner, WI, Tom Spirek, SEVEn, Gerhard Wohlauf, Stefan Thomas, WI, Dries Maes, VITO, Georg Benke, Bernd Schäppi, A.E.A., Ilari Aho, Motiva, Claus Barthel, WI. Centre row from left: Jürg Nipkow, S.A.F.E, Louiza Papamikrouli, CRES, Andrew Pindar, eERG, Margarita Puent, ESCAN. Front row from left: Jörg Köhl, Dena, Thérèse Kreitz, ADEME, Sophie Attalie, SOWATT. 100 Annual Report 2005/2006 Meetings 101

On 27 April 2006, “Girls’ Day”, the Wuppertal Institute, just as other German companies and organizations, gave young girls the chance to gain insight into technical and scientific professional In the context of the support programme “Belarus” of the German government a group of fields. The inquisitive girls Belarus citizens visited the WI to inform themselves about the subject of scientific indica- from the 8th grade were tors, which demonstrate sustainable development of a society, and about the research of the introduced to the work at Wuppertal Institute. The Belarus citizens were members of NGOs, activists and researchers the Institute and the tasks who were well-informed and discussed actively with the researchers.. of the researchers in the Project “WISIONS”. 102 Annual Report 2005/2006 Meetings 103

On 1 June 2006, the “Perspectives of the German car-sharing 2020” were debated on the final event of the project “Future of car-sharing in Germany” in the auditorium of the Wuppertal Institute. Project manager Georg Wilke and his team presented the results of the project. The invited external experts also provided ample opportunity to broaden one’s horizon.

Prof. Dr. Michael Vester spoke about the role of the milieu (photo left). Dr. Ulf Schrader provided an insight into questions of marketing (photo below left). Dr. Bodo Schwieger presented car-sharing in other countries (photo above). Photo above: Project consultants (from left): Prof. Dr. Thomas Krämer-Badoni, Prof. Dr.- Photos: Dorle Riechert Ing. Rudolph Petersen, Prof. Dr.-Ing. Christian Holz-Rau. Photo below: Panel discussion with (from left): Thomas Pitzschke, DB Car-Sharing, Prof. Dr.-Ing. Rudolf Petersen, Georg Wilke, Dr. Oscar Reutter (presentation of the discussion), Martin Stutzbach, German As- sociation of Car-Sharing, Albert Schmidt, former Member of the German Parliament / CPC Berlin and Prof. Dr. Thomas Krämer-Badoni. Photos: Dorle Riechert 104 Annual Report 2005/2006  105

New Publications

Raimund Bleischwitz and Oliver Budzinski Hermann E. Ott, Karin Holl: Uta von Winterfeld: (eds.): Climate Policy and Beyond Naturpatriarchen Environmental Economics Japanese-German Impulses. A documenta- Geburt und Dilemma der Naturbeherrsc- Hosts and speakers of the book launch “Materialeffizienz. Potenziale bewerten, Inno­ Institutions, Competition, Rational- tion on the climate policy dialogue and hung bei geistigen Vätern der Neuzeit vationen fördern, Beschäftigung sichern” (Material Efficiency — Evaluating Potentials, ity — INFER annual conference 2004, conference between stakeholders of Japan Oekom Verlag, München 2006-07-14 Wuppertal and Germany within the “Germany year in ISBN: 3-936581-46-0 Fostering Innovations, Ensuring Jobs), Christa Liedtke, Timo Busch (eds.) Ökom Verlag on Japan 2005–2006”. VWF Verlag für Wissenschaft und Forsc- 30 November 2005 in Düsseldorf. From left: Dr. Christa Liedtke, Wuppertal Institute, hung, Berlin, 2006. Wuppertal Spezial Nr. 33 Werner Preusker, Ag PVC and Environment, Marie-Louise Fasse, CDU, Member of the ISBN 3-89700-182-9 ISBN: 3-929944-69-3 (INFER Research Edition vol. 10) Landtag, NRW. Another speaker (not in the photo) was Götz von Stumpfeldt, expert for economic policy, Bündnis 90/Die Grünen in the Bundestag. Fotos: Agentur Zeitgeist, Morsbach

Raimund Bleischwitz: Martin Khor, Sunita Narrain, Lori Wallach, Philipp Schepelmann: Prior to the official book launch in Düsseldorf, the book Gemeinschaftsgüter durch Wissen Manfred Max-Neef u.a.: Die ökologische Wende der “Materialeffizienz” was presented to Klaus Töpfer, CDU generierende Institutionen Konsum. Globalisierung. Umwelt. EU-Regionalpolitik (center) by Dr. Christa Liedke, Wuppertal Insitute (left) Ein evolutorischer Ansatz für die Wirt- McPlanet.com — Das Buch zum zweiten Die regionale Resonanz von umweltpoli- schaftspolitik Kongress von Attac, BUND und Greenpeace tischen Indikatoren des Lissabon-Prozesses and Werner Preusker, Ag PVC and Environment (right) Metropolis-Verlag, 2005 in Kooperation mit der Heinrich Böll Stif- der Europäischen Union in the course of the CSCP opening ceremony on ISBN: 3-89518-528-0 tung und dem Wuppertal Institut für Klima, Verlag Dr. Kovac, Hamburg 2005 Umwelt, Energie 25 November 2005. ISBN: 3-8300-2146-1 VSA-Verlag, Hamburg 2005 ISBN: 3-89965-136-7 106 Annual Report 2005/2006  107

The WI in brief

The Wuppertal Institute explores and develops models, strategies and instruments to support sustainable development at the local, national and international level. Sustainability research at the Wuppertal Institute focuses on ecology and its relation to economy and society. Special empha- sis is put on analysing and inducing innovations to decouple the use of natural resources from overall development. Professor Peter Hennicke heads the Wuppertal Institute as President and Chief Research Executive. Dr.-Ing. Manfred Fischedick is the Vice Pres- ident and Brigitte Mutert-Breidbach is the Business Manager. The Institute was founded in 1991 in the legal form of a limited company (Gesellschaft mit beschränkter Haftung, GmbH) under Professor Dr. Ernst Ulrich von Wuppertal Institut für Klima, Umwelt, Energie GmbH: Future e.V. + Effizienz-Agentur NRW + Wuppertal Institut für Weizsäcker as President. Klima, Umwelt, Energie: Wuppertal Bulletin zu Instrumenten des Klima- und Umweltschutzes factoryY The Institute understands itself as an intermediary between science, Magazin für nachhaltiges Wirtschaften ISSN: 1618-3959 economy and politics, therefore, its sustainability research design is applica- ISSN: 1860-6229 Weitere Informationen unter http://www.factory-magazin.de/ tion-oriented. At present, around 140 staff members are working in research groups, scientific services and the administration. The Wuppertal Institute is part of the Science Centre North Rhine- Westphalia (WZN). An International Advisory Board that consists of renowned scientists­ advises the Wuppertal Institute on questions of its research agenda. The major part of the Institute’s funding derives from an increasing number of third-party projects. It receives basic funding from the Land North Rhine- Westphalia and is affiliated to the Ministry of Innovation, Science, Research and Technology.

The Wuppertal Institute’s clients cover • Governmental organisations, ranging from local authorities to minis- tries at both state and national levels, the European Commission and the United Nations; • business and industry, ranging from medium-sized companies to corpo- rate groups and industrial associations; • civil society, ranging from environmental associations to churches, trade Stephan Moll, Stefan Bringezu, Helmut Schütz: Holger Dalkmann, Daniel Bongardt, Katja Rottmann, unions and foundations. Ressource Use in Euroean Countries Sabine Hutfilter: An estimate of materials and waste streams in the Community, Review of Voluntary Approaches in the European including imports and exports using the instrument of material Union Research at the Institute takes place in interdisciplinary and collaborative flow analysis Feasibility Study on Demonstration of Voluntary Approaches Wuppertal Report Nr. 1 for Industrial Environmental Management in China teams. This way complex questions of a global sustainable development can ISSN: 1862-1953 Wuppertal Report Nr. 2 be answered on a high scientific level and to an extent to which they may ISSN: 1861-8464 108 Annual Report 2005/2006 The WI in brief 109 be applicable in real life. The core research fields of the Institute’s research contribute to the development and launch of more sustainable products, groups are: production processes and markets.

Moreover, scientists from the Wuppertal Institute’s research units join forces Future Energy and Mobility Structures in cross-cutting projects: (RG 1: Director: Dr. Manfred Fischedick: Co-Directors: Dr. Stephan • Integrated Sustainability Scenarios (Head: Dr. Manfred Fischedick) Ramesohl, Dr. Karl-Otto Schallaböck) • Sustainable Globalisation (Head: Dr. Wolfgang Sachs) • Eco-Sufficiency and Quality of Life (Head: Dr. Manfred Linz) Research Group 1 works on systems analysis and on questions of technol- ogy and infrastructure. In the field of energy and mobility it explores paths of transition to sustainable structures, with a focus on implications and Further units: opportunities. It develops dynamic potential analyses; it also works towards Berlin Office (Head: Dr. Hermann E. Ott) technology assessments and pointing out consistent paths of development Research Organisation and Quality Control: Dr. Oscar Reutter (scenarios, road maps). Scientific Services & Organization (Head: Thomas Orbach) Administration (Head: Brigitte Mutert-Breidbach) Energy, Transport and Climate Policy (RG 2: Director: Dr. Stefan Thomas; Co-Directors: Stefan Contact: Lechtenböhmer, Christiane Beuermann) Wuppertal Institute Wuppertal Institute Research Group 2 analyses strategies and instruments for a more effective for Climate, Environment and Energy Berlin Office — Hackesche Höfe and integrated energy, transport and climate policy at local, national and Döppersberg 19 Rosenthaler Str. 40/41 international levels. The research focuses on synergy effects of policy strate- 42103 Wuppertal 10178 Berlin gies that support the sustainable development of energy and transport sys- Phone: +49 (0) 202 2492-0 Phone: +49 (0) 30 2809-5494 tems as well as overall climate protection. Fax: +49 (0) 202 2492-108 Fax: +49 (0) 30 2809-4895 E-mail: [email protected] E-mail: [email protected] Material Flows and Resource Management Internet: www.wupperinst.org (RG 3: Director: Dr. Stefan Bringezu; Co-Director: Prof. Dr. Raimund UNEP/Wuppertal Institute Collaborating Bleischwitz) Centre on Sustainable Consumption and Production Research Group 3 explores material flows from the extraction of raw mate- Hagenauer Straße 30 rials to final disposal, calculating their global “ecological rucksacks” and the 42107 Wuppertal / Germany extent of land use involved. It develops concepts, strategies and instruments Tel. +49 (0) 202 45958-10 aimed at improving resource productivity and sustainable resource man- Fax: +49 (0) 202 45958-31 agement. E-Mail: [email protected] Internet: www.scp-centre.org Sustainable Production and Consumption (RG 4: Director: Dr. Christa Liedtke; Co-Director: Carolin Baedecker) Research Group 4 develops concepts and strategies for a sustainability-ori- ented management of production and consumption patterns. It wants to 110 Annual Report 2005/2006

Wuppertal Institute for Climate, Environment and Energy Chief Executive for Business Research Organization Research / President Manager Scienti c Services and Quality Control Vice President and Organization

PHD Administrative Scienti c Programme Berlin Oce Services Services

Research Group 1 Research Group 2 Future Energy, Energy- and Mobility Transport and Structures Climate Policy

Cross Cutting Subjects UNEP/Wuppertal Institute Collaborating Centre on Research Group 3 Research Group 4 Sustainable Consumption and Production GmbH Material Flows Sustainable and Resource Production and Management Consumption