Policy Department Economic and Scientific Policy Eco-innovation - putting the EU on the path to a resource and energy efficient economy Study and briefing notes IP/A/ITRE/ST/2008-06 & 14 JANUARY 2004 PE 416.218 This study was requested by the European Parliament's committee on Industry, Research and Energy (ITRE). Only published in English. Authors: Part 1: Study on Eco-innovation putting the EU on the path to a resource and energy efficient economy Wuppertal Institute for Climate, Environment, Energy Prof. Dr. Raimund Bleischwitz (Coordination and lead chapter 4), Bettina Bahn-Walkowiak, Dr. Wolfgang Irrek, Dr. Phillip Schepelmann Factor 10 Institute Prof. Dr. Friedrich Schmidt-Bleek (Lead Chapter 5) SERI Nachhaltigkeitsforschung und Kommunikations GmbH Dr. Stefan Giljum (Lead Chapter 2), Stephan Lutter, Lisa Bohunovski, Dr. Friedrich Hinterberger UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production gGmbH (CSCP) Elizabeth Hawkins, Michael Kuhndt (Lead Chapter 3), Dr. Nadine Pratt Part 2: Briefing notes of the Eco-Innovation Workshop of 12 November 2008 Arnold Black - Resource Efficiency Knowledge Transfer Network, UK Challenges, Drivers and Barriers to Eco-Innovation a UK context Geert van der Veen - Technopolis, the Netherland Public policies for Eco-innovation: focus on The Netherlands Birgit Eggl - Forseo, Germany Funding Eco-Innovation Administrator: Ms. Camilla Bursi Policy Department Economy and Science DG Internal Policies European Parliament Rue Wiertz 60 - ATR 00L008 B-1047 Brussels Tel: +32-2-283 22 33 Fax: +32-2-284 69 29 E-mail: [email protected] Manuscript completed in March 2009. The opinions expressed in this document do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised provided the source is acknowledged and the publisher is given prior notice and receives a copy. E-mail: [email protected] IP/A/ITRE/ST/2008-06 & 14 PE 416.218 TABLE OF CONTENTS PART 1: STUDY ON ECO-INNOVATION: PUTTING THE EU ON THE PATH TO A RESOURCE AND ENERGY EFFICIENT ECONOMY..................................................... v Executive Summary ................................................................................................................vi 1. Background and Scope................................................................................................... 1 2. Resources scarcity........................................................................................................... 2 2.1. Scenarios of possible resource scarcities (including energy).................................. 2 2.2. Patterns of resource use in different sectors of the EU ........................................... 8 2.3. Sectors affected by resource scarcity .................................................................... 11 2.4. Summary ............................................................................................................... 12 3. Eco-Innovation: Current Status and Opportunities.................................................. 14 3.1. Definition and Scope............................................................................................. 14 3.1.1. Different types and levels of Eco-Innovation...................................................................... 14 3.1.2. Measuring eco-innovation and material flows .................................................................... 15 3.1.3. Eco-innovation and resource-efficiency.............................................................................. 15 3.2. Examples of eco-innovations in key areas ............................................................ 16 3.2.1. Area Housing: Deep Renovation and Smart Metering........................................................ 17 3.2.2. Area Mobility: the Green Electric Car and Car sharing ...................................................... 20 3.2.3. Area Food and Drink: Community Supported Agriculture (CSA) and Sustainable Sourcing of Retailers .......................................................................................................................... 23 3.3. Drivers and Barriers of eco-innovation................................................................. 26 3.3.1. Drivers and Barriers – an overview..................................................................................... 26 3.3.2. Deep Renovation (the refurbishment of old buildings) ....................................................... 29 3.3.3. Smart Metering.................................................................................................................... 30 3.3.4. Green Electric Car............................................................................................................... 31 3.3.5. Car sharing .......................................................................................................................... 32 3.3.6. Community supported agriculture (CSA) ........................................................................... 33 3.3.7. Sustainable Sourcing of retailers......................................................................................... 34 3.4. Conclusions ........................................................................................................... 35 4. How to speed up Eco-Innovation in the EU ............................................................... 37 4.1. Impact and effectiveness of EU programmes........................................................ 37 4.1.1. Eco-design Directive........................................................................................................... 38 4.1.2. The Competitiveness and Innovation Framework Programme (CIP).................................. 40 4.1.3. The Seventh Framework Programme for research and technological development (FP7) .43 4.1.4. The Environmental Technology Action Plan (ETAP)......................................................... 45 4.1.5. Directive on the energy performance of buildings (EPBD) ................................................ 47 4.1.6. The Action Plan on Sustainable Consumption and Production and Sustainable Industrial Policy .................................................................................................................................. 49 4.2. Other approaches and best-practices of promoting eco-innovation ...................... 50 4.2.1. Regulatory instruments ....................................................................................................... 50 4.2.2. Economic instruments......................................................................................................... 51 4.2.3. Informational instruments (incl. knowledge-creation, research and education, cooperation) ............................................................................................................................................. 53 IP/A/ITRE/ST/2008-6 & 14 Page i PE 416.218 4.3. Proposals for a future EU framework on eco-innovation...................................... 55 4.3.1. Market-based instruments for the heavy weights: taxing construction minerals................. 55 4.3.2. Greening the EU budget towards eco-innovation................................................................ 59 4.3.3. Engaging industry in developing eco innovation for sustainable ways of living ................ 61 4.3.4. The Strategy Areas.............................................................................................................. 62 4.3.5. How the SCP Action plan can further support eco-innovation in the EU ........................... 64 4.3.6. A European Trust Funds for Eco-Entrepreneurship ............................................................ 65 4.3.7. A Technology Platform for Resource-light industries......................................................... 66 4.3.8. A Programme for refurbishing and upgrading existent buildings in the EU ....................... 67 4.3.9. Eco-innovation and EU Foreign policy............................................................................... 68 5. A Vision for the Future ................................................................................................ 70 Annex 1.................................................................................................................................... 73 References ............................................................................................................................... 77 List of figures and tables: Figure 1: Gaps of current EU programmes on eco-innovation ........................................................................ix Figure 2: Global resource extraction, by major groups of resources and regions .............................................2 Figure 3: Domestic Extraction (DE) and Raw Material Consumption (RMC) in different world regions (absolute numbers, left diagram and per capita, right diagram), in 2000..............................3 Figure 4: Net-trade flows in relation to domestic extraction.............................................................................4 Figure 5: Commodity prices in €/t and €/barrel respectively............................................................................4 Figure 6: Worldwide distribution of reserves of the main energy carriers and metals......................................5 Figure 7: Worldwide distribution of reserves of selected minerals and precious metals ..................................6