Communication from the Commission - Developing an action plan for environmental technology
Date: 2003-03-25
Institutions: European Commission
Subjects: EU environmental policy, action programme, clean technology, soft energy, soil protection, sustainable development, water management

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 25.3.2003
COM(2003) 131 final

COMMUNICATION FROM THE COMMISSION

Developing an action plan for environmental technology

TABLE OF CONTENTS

1.

2.

2.1.

2.2.

2.3.

3.

Introduction...................................................................................................................5

Process for the analysis and for Stakeholder Involvement ...........................................6

Process for the Analysis................................................................................................7

Choice of Environmental Issues ...................................................................................7

Stakeholder Involvement ..............................................................................................8

Trends in research, and the market for the Technologies of the future ........................8

3.1.

Trends in research and the technologies of the future ..................................................8

3.1.1. Climate Change ............................................................................................................8

3.1.2.

Sustainable Production and Consumption ....................................................................9

3.1.3. Water.............................................................................................................................9

3.1.4.

Soil Protection ..............................................................................................................9

3.1.5. Cross-cutting enabling Technologies ...........................................................................9

3.2.

The environmental technology context ......................................................................11

4.

4.1.

4.2.

4.3.

Climate Change ..........................................................................................................11

Background of the European Climate Change Programme........................................11

The Concept and Promotion of Environmental Technology......................................12

The Identification of Barriers .....................................................................................12

4.3.1.

Technical Barriers.......................................................................................................12

4.3.2. Regulatory barriers .....................................................................................................12

4.3.3.

Economic Barriers ......................................................................................................12

4.3.4.

Social Barriers ............................................................................................................13

4.4.

Next Steps...................................................................................................................13

5.

Sustainable Production and Consumption ..................................................................14

5.1.

Barriers .......................................................................................................................14

5.1.1. Regulatory Barriers.....................................................................................................14

5.1.2.

Economic Barriers ......................................................................................................15

5.1.3.

Social Barriers ............................................................................................................15

5.2.

5.3.

Next Steps...................................................................................................................15

Stakeholder Consultation............................................................................................16

2

6.

Water...........................................................................................................................16

6.1.

Barriers .......................................................................................................................16

6.1.1.

Technical Barriers.......................................................................................................16

6.1.2. Regulatory Barriers.....................................................................................................16

6.1.3.

Economic Barriers ......................................................................................................17

6.1.4.

Social Barriers ............................................................................................................17

6.2.

6.3.

7.

8.

Next Steps...................................................................................................................17

Stakeholder Consultation............................................................................................17

Soil Protection ............................................................................................................18

The Way Forward .......................................................................................................18

8.1.

Measures for discussion..............................................................................................18

8.1.1.

Technical Measures ....................................................................................................18

8.1.2. Regulatory Measures ..................................................................................................19

8.1.3.

Economic Measures....................................................................................................19

8.1.4.

Improving the Diffusion of New Solutions ................................................................19

8.2.

8.3.

Questions for Stakeholders .........................................................................................20

Next Steps...................................................................................................................21

3

EXECUTIVE SUMMARY

In  March  2002,  the  Commission  issued  a  Communication  on  "Environmental
that  environmental
Technology  for  Sustainable  Development"  which  argued 
technology  could  contribute 
to  sustainable  development  by  protecting  our
environment  and  at  the  same  time  contributing  to  economic  growth.  However,  at
present market barriers and a number of other obstacles prevent them from realising
their full potential.

The  Commission  therefore  proposed  to  the  Barcelona  European  Council  that  it
develops  with  stakeholders  an  action  plan  to  tackle  obstacles  to  the  development,
take-up  and  use  of  environmental  technologies.  The  Barcelona  European  Council
approved  this  proposal  in  March  2002,  confirming  the  political  importance  of
environmental technology.

To  deliver  a  strategic  and  concrete  action  plan  requires  the  participation  of  all
stakeholders  throughout  the  whole  policy  chain.  To  facilitate  this  process,  the
Commission  services  have  prepared  this  Communication  on  the  first  findings  as  a
starting  point  of  the  consultation  with  stakeholders.  We  intend  to  put  forward  an
action plan on environmental technology to be adopted by the Commission by the end
of 2003.

In  developing  the  action  plan  the  Commission  has  decided  to  focus  on  four
environmental  issues:  climate  change,  soil  protection,  sustainable  production  and
consumption, and water. These issues are all linked to the priority areas identified in
the  6th  Environmental  Action  Programme.  They  are  also  covered  by  the  Sixth
Framework Programme for Research, and  are relevant  to  the  decisions  at  the  World
Summit on Sustainable Development.

The aim is to identify promising technologies, any barriers holding them back, and the
appropriate measures to overcome these barriers. Already it is apparent that there are
similarities  in  the  barriers  across  different  environmental  fields:  for  example,
economic  barriers  such  as  pricing  structures  that  do  not  penalise  pollution,  poor
access  to  finance  coupled  with  long  investment  cycles,  poor  dissemination  of  new
technologies,  technical  barriers  that  need  to  be  overcome  through  targeted  research
efforts, organisational barriers and a lack of awareness and skills.

This  Communication  sets  out  a  number  of  issues  emerging  from  its  preliminary
analysis,  and  invites  feedback  from  stakeholders  on  them.  It  also  invites  Member
States and Candidate Counties to participate in the debate.

4

1.

INTRODUCTION

As  set  out  in  the  Commission’s  March  2002  Report1,  environmental  technologies  –  all
technologies whose use is less environmentally harmful than relevant alternatives2 - not only
protect our environment, they also have the potential to contribute to economic growth, in a
number of ways. Provided they reduce the costs of environmental protection, they allow us to
get  more  environmental  protection  for  less  money,  or  to  meet  current  standards  at  a  lower
cost.  They  also  help  to  de-couple  environmental  pollution  and  resource  use  from  economic
growth, allowing our economies more scope to  grow in the long run without compromising
social well-being and quality of life.

Therefore,  environmental  technologies  can  be  an  important  bridge  between  the  Lisbon
Strategy  objective  of  making  the  European  Union  "the  most  competitive  and  dynamic
knowledge-based economy in the world" and the environmental dimension of the Sustainable
Development Strategy agreed at the Göteborg European Council in June 2001.

Reflecting the potential "win-win" character of environmental technologies, the Commission
published its Communication "Environmental Technology for Sustainable Development"3 in
March  2002,  proposing  the  development  of  an  Action  Plan  for  environmental  technologies.
The  Barcelona  European  Council  responded  by  approving  this  proposal,  giving  a  clear
mandate to the Commission.

The Action Plan should be seen in the context of the Lisbon Strategy. Fostering technological
progress and  renewing the  EU’s capital stock are  major aims  of the  Lisbon  Strategy,  which
sees the need for policies that could raise the growth rate of the EU economy to around 3%.

To help technological progress, the rate of investment growth in Research and Technological
Development needs to be substantially accelerated - the European Council has set a target of
3%  of  GDP  for  the  overall  level  of  public  and  private  spending  on  research.  Building  the
European  Research  Area  can  harness  the  efforts  of  both  the  public  and  private  sectors  and
exploit the synergies between European and national efforts. Measures in this area will also
encourage investment in environmental technology4. In addition, EU and national innovation
policies, that focus on removing barriers to the transfer of technology, will also contribute to
promoting environmental technology. However, there are a number of factors specific to this
field that also need to be addressed, such as market prices which do not reflect environmental
impacts. The environmental technology Action Plan will overcome these general and specific
barriers to investment in environmental technology.

1

2

3

4

COM(2002) 122 final of 13 March 2002.
As  set  out  in  chapter  2  of  the  Commission’s  March  2002  Report,  the  concept  of  environmental
technology should not be limited to a small number of core activities. It includes both low and high-tech
applications  as  well  as  skills  and  know-how.  For  instance,  relatively  modest  adaptations  in  industrial
processes by means of piping, screens, filters, tanks etc, can be just as important – and more accessible -
as high-tech applications.
COM(2002) 122 final.
These  measures  are  discussed  in  the  Communication  "More  Research  for  Europe  -  Towards  3%  of
GDP" COM(2002) 499.

5

                                                
The purpose of this Communication is two-fold:

– 

– 

to set out the preliminary analysis in a limited number of areas;

to form the base for a dialogue with stakeholders.

Chapter 2 provides a summary of the process, explains the choice of issues, and sets out the
role  for  stakeholders.  Chapter  3  provides  some  examples  of  current  research  areas  and  the
markets  into  which  they  will  enter.  Chapter  4  reports  on  the  assessment  of  the  European
Climate  Change  Programme  from  a  technology  perspective.  Chapters  5  and  6  report  on
preliminary analyses in the areas of sustainable production and consumption and water, whilst
Chapter 7 sets the scene for analysis in the area of soil protection. Chapter 8 details a possible
way forward and invites feedback from stakeholders on the key issues.

2.

PROCESS FOR THE ANALYSIS AND FOR STAKEHOLDER INVOLVEMENT

The  EU  already  has  in  place  policies  and  instruments  designed  to  promote  environmental
technology. For example, Integrated Pollution Prevention and Control5 is an important driver
for the dissemination and development of  environmental  technology, as operators  of  certain
industrial installations must apply for a permit based on best available techniques. Also, the
EU  Research  Framework  Programmes  provide  financial  support  for  research  in  relation  to
environmental technologies and the LIFE6 Programme finances demonstration actions in this
domain.

However,  the  Communication  "Environmental  Technology  for  Sustainable  Development"
identified  the  potential  value-added  from  a  specific  policy  effort  targeted  towards
environmental technologies. This is why the Commission proposed "an Action Plan based on
a  rigorous  analysis  of  the  issues  as  well  as  a  broad  consultation  of  stakeholders  from
industry,  the  research  community,  NGOs  and  governments,  both  within  the  EU15  and  the
Candidate  Countries".  Stakeholders  include  the  producers  and  users  of  environmental
technologies, trade unions, as well as the providers of training and education who ensure that
people are suitably qualified to develop, use and maintain new technologies.

It will include:

– 

– 

– 

a  survey  of  some  relevant  (environmentally,  economically  and  socially)
promising  technologies  that  could  address  some  of  the  main  environmental
problems;

the  identification,  with  stakeholders,  of  the  market  and  institutional  barriers
that are holding back development and use of specific technologies;

the identification  of a targeted package  of  measures  to  address  these  barriers,
and building on existing instruments.

5

6

http://europa.eu.int/comm/environment/ippc/index.htm
http://europa.eu.int/comm/environment/life/home.htm

6

                                                
2.1.

Process for the Analysis

The process being followed includes a number of steps to ensure that the final Action Plan is
also endorsed by stakeholders.

(cid:1)  The Communication of March 2002, "Environmental Technology for Sustainable
Development", laid the ground for the development of the Action Plan, and set out
its broad mandate.

(cid:1)  This Communication is designed to report on progress: providing a report on early
findings  including  some  broad  orientations  for  future  action  points  in  order  to
provide the basis for an efficient consultation, without pre-empting the content of
the Action Plan.

(cid:1)  A  Communication  towards  the  end  of  2003  will  include  a  more  comprehensive
identification  of  promising  technologies,  barriers  to  them  and  action  points  to
overcome these obstacles.

2.2.

Choice of Environmental Issues

Four  issues  have  been  chosen  so  that  focused  analyses  can  be  carried  out  leading  to
operational and specific action points. These issues have an environmental focus, to allow for
a problem-solving approach and also to facilitate stakeholder involvement. For each of these
issues  horizontal  topics  such  as  technology  transfer  and  Information  Communication
Technologies will be covered. The work is and will be carried out by 'Issue Groups' on:

(cid:1)  Climate Change

(cid:1)  Sustainable Production and Consumption

(cid:1)  Water

(cid:1)  Soil Protection

These  issues  are  all  linked  to  priority  areas  identified  in  the  6th  Environmental  Action
Programme7 and are covered in the Sixth Framework Programme for Research8. They are also
relevant to the discussions at the World Summit on Sustainable Development in Johannesburg
and to the EU's Industrial Policy9. Together, the work of these four Issue Groups will form the
basis for the Action Plan.

7

8

9

Decision No 1600/2002/EC of the European Parliament and of the Council of 22 July 2002 laid down
the  Sixth  Community  Environment  Action  Programme.  Details 
at
http://europa.eu.int/comm/environment/newprg/index.htm
http://www.cordis.lu
See 
COM(2002) 714 final of 11 December 2002.

the  Commission’s  Communication 

an  Enlarged  Europe  –

Industrial  Policy 

found 

can 

be 

in 

7

                                                
2.3.

Stakeholder Involvement

As  part  of  Green  Week  2002,  the  Commission  held  a  conference  on  environmental
technology  designed  to  elicit  the  initial  views  of  stakeholders  on  the  development  of  the
Action  Plan10.  During  the  discussions,  it  was  noted  that  stakeholders  would  contribute  only
when they saw that the Commission was committed to the issue. This is one of the reasons for
this Communication, which also provides the basis for a constructive dialogue.

For  the  preliminary  analysis  reported  in  this  Communication,  external  stakeholders  were
consulted either through existing consultation mechanisms or through bilateral consultations.
From  2003  onward,  the  Commission  wants  to  increase  the  involvement  of  stakeholders.  In
particular,  the  Commission  will  publish  reports  on  the  analysis  undertaken  in  an
Environmental  Technology  website11  and  invite  stakeholders  to  participate  in  each  of  the
Issue Groups. A number of questions are also asked at the end of this Communication.

3.

TRENDS IN RESEARCH, AND THE MARKET FOR THE TECHNOLOGIES OF THE FUTURE

It is useful to have in mind some 'promising' technologies, to ensure that the analysis of the
barriers  is  operational.  It  is  not  possible  to  provide  a  comprehensive  list  of  all  promising
technologies. Instead, this Chapter gives a picture of what is going on at the moment in  the
research  community  of  Europe,  and  a  brief  description  of  the  market  for  the  technologies
which may emerge.

3.1.

Trends in research and the technologies of the future

Prior  to  the  adoption  of  the  Sixth  Framework  Programme  for  Research,  the  Commission
invited the research community to submit Expressions of Interest. Their ideas have been taken
into  account  to  a  considerable  extent  by  the  research  work  programme.  An  examination  of
these  ideas,  combined  with  the  preliminary  analysis  of  the  Issue  Groups  and  stakeholders
provide a snapshot of some technologies researched at European level. Of course, research at
national level also covers some additional key technological areas.

Some examples of key research areas are given below.

3.1.1. Climate Change

– 

– 

Hydrogen  production,  transport,  storage  and  end-use  from  fossil,  renewable
and  other  sources;  fuel  cell  systems  for  clean  decentralised  energy  supply;
greenhouse  gas-free  energy  options  and  technologies  to  sequester  carbon
dioxide  from  fossil  fuels;  Renewable  Energy  Sources  such  as  wind,  biomass,
photovoltaics, wave or ocean energy.

Surface and aeronautical transport technologies that can lead the way towards
near  zero  emission  engines  including  more  efficient  internal  combustion
engines.

10

11

The  papers  and  a  summary  of  the  discussion  from  Green  Week  Sessions  8,  12,  16  and  21  on
environmental technology can be found at http:/europa.eu.int/comm/environment/etap
http:/europa.eu.int/comm/environment/etap.  For  example, 
Communication are available on this website.

the  working  papers  underlying 

this

8

                                                
–  Work organisation and innovations in workplace  design  that  cut  work-related

travel and lead to more efficient use of office facilities.

3.1.2.

Sustainable Production and Consumption

– 

– 

– 

Resource-based  approaches  to  move  us  from  quantity  to  quality,  and  away
from  mass  produced  single-use  products  towards  value  added  services
(intangible value creation).

Nano-science  and  nano-technology;  clean  processes,  products  and  materials
accompanied by an emphasis on life cycle thinking.

Technologies  for  the  treatment  of  waste,  including  hazardous  waste,  with
recovery of materials.

3.1.3. Water

– 

– 

Improved water metering and leak detection systems; decentralised distribution
and  sewage water  systems; technologies  for  sustainable  water  recycling/reuse
from rain, grey and black water.

Remote  sensing,  standards  for  measurement  methods  and  data  collection;
multi-sensors,  mathematical  models 
flood
prediction/prevention and impact mitigation.

civil  works 

and 

for 

–  Membrane based technologies, advanced oxidation, innovative separation and
recycling  technologies;  tailor-made  biofilms  and  advanced  biological  nutrient
removal processes; anaerobic treatments; sewage sludge technologies.

3.1.4.

Soil Protection

– 

– 

– 

Biotechnology and life science technologies that improve our understanding of
soil microbiology and microbial diversity, and are relevant to bio-remediation
of contaminated soils.

Technologies 
contamination and help protect vulnerable ecosystems.

fight 

that 

land  degradation,  desertification,  and 

soil

Techniques  for  soil  monitoring  and  the  development  of  agri-environment
indicators on soil erosion and degradation.

3.1.5. Cross-cutting enabling Technologies

– 

– 

– 

Information  Communication  Technologies  for  better  control  of  industrial
production processes (such as sensors, actuators, control systems) that improve
data integration and standardisation, management and monitoring; "eBusiness"
in general.

Environment-related applications of biotechnology.

Global Navigation Satellite Systems, Global Monitoring for Environment  and
Security and the Galileo programme for Radionavigation by satellite.

9

– 

Socio-economic  research  into  developing  policy  analysis  tools:  for  example,
tools to internalise environmental costs into pricing and accounting systems.

10

3.2.

The environmental technology context

Technologies  that  become  economically  and  environmentally  attractive  will  be  taken  up  by
business,  governments  and  households.  It  is  important  to  understand  their  future  market.
Statistics  specifically  on  environmental  technology  are  not  available,  but  there  are  statistics
for  the  European  ecoindustry  (the  producers  of  many  environmental  technologies)  that
provide an indication of market trends12. These are provided in the box below.

Box 1 Market for environmental protection and resource management

(cid:1)  The EU eco-industries supply some 183 Bn euros of goods and services a year (around 500
euros per person). Pollution management and cleaner technologies accounts for around 127 Bn
euros and resources management (excluding renewable energy plant) around 56 Bn euros.

(cid:1)  In real terms, total pollution management and cleaner technologies expenditure has risen by
5% per annum since 1994. The private sector is increasingly important, accounting for 45% of
total expenditure in 1994 and 59% in 1999.

(cid:1)  Direct employment in the EU in eco-industries amounts to over 2 million jobs. Total direct
employment resulting from pollution management and cleaner technologies has risen by around
500,000 jobs since 1994.

(cid:2)  In  the  Candidate  Countries,  pollution  management  and  cleaner  technologies  eco-
industries supply around 10.3 Bn euros of goods and services a year (equivalent to 1.9%
of their GDP).

4.

CLIMATE CHANGE

Climate  change  has  been  tackled  in  a  different  way  to  the  other  issues  examined  in
preparation of the Action Plan and discussed in the Chapters below. Instead of carrying out a
new  analysis,  the  Issue  Group  sought  to  build  upon  the  experience  accumulated  in  the
European  Climate  Change  Programme  (ECCP).  An  analysis  of  the  ECCP  was  therefore
undertaken  from  a  technology  perspective  with  the  aim  of  identifying  best  practice  and
identifying  technology  analysis  and  research  needed  in  the  future.  A  summary  of  the  work
undertaken so far and to be continued in 2003 by the Climate Change Issue Group is given in
this chapter.

4.1.

Background of the European Climate Change Programme

The ECCP was established in June 2000 as a multi-stakeholder consultative process, to help
identify the most environmentally sound and cost-effective additional measures enabling the
EU to meet its target under the Kyoto Protocol. The first phase of the ECCP was finalised in
200113. The second phase of the ECCP is ongoing, and designed (1) to ensure that the most

12

13

The figures in this section are based on the study:"Analysis of the EU eco-industries, their employment
and export potential", Ecotec, 2002, available at
http://europa.eu.int/comm/environment/enveco/studies2.htm#industry-employment
The  final  report  of  the  first  phase  of  the  ECCP  formed  the  basis  for  the  Communication  from  the
Commission "on the implementation of the first phase of the European Climate Change Programme" of
October 2001 COM(2001) 580 final.

11

                                                
advanced measures of the first phase are translated into concrete policy proposals and (2) to
investigate further a number of specific policy areas and (3) to consider research needed for
the post-Kyoto period.

4.2.

The Concept and Promotion of Environmental Technology

From  the  start,  the  ECCP  has  been  developed  as  a  policy  oriented  program,  rather  than  a
technology  oriented  one.  Work  therefore  focussed  on  bringing  potential  policy  measures  to
the  surface  and  analysing  them  in  terms  of  emission  reduction  potential,  costs  and  possible
other consequences. In this process, the uptake of environmental technologies available, or to
become available, as  a consequence of  a specific  measure, is of  course  a key  component of
the assessment.

The  technologies  that  enable  the  ECCP  measures  to  be  implemented  include  low  and  high
tech  solutions,  production  processes,  management,  and  both  available  but  not  adopted
technologies and technologies still at the research phase.

4.3.

The Identification of Barriers

The ECCP has confirmed that there is a great emissions reduction potential, but that much of
this potential has remained unrealised because of obstacles that hinder the market penetration
of  the  relevant  technologies.  This  is  why,  within  the  ECCP,  a  number  of  different  barriers
have already been identified along with specific actions to overcome them.

4.3.1.

Technical Barriers

In  the  initial  stages  of  development,  technical  barriers  dominate.  Purely  technological
problems  need  to  be  overcome  by  research  and  development.  A  number  of  specific
recommendations  were  made  regarding  the  need  to  invest  in  new  methodologies  and
technologies to make mitigation more cost effective and socially acceptable, giving particular
emphasis to interdisciplinary break through technologies.

4.3.2.

Regulatory barriers

Regulation that is not conducive to new technologies can slow down market penetration. One
example, is the question of how the regulations  (planning, safety etc)  need to  be adapted to
facilitate the introduction of hydrogen, bio-fuels or natural gas as an automotive fuel. In such
areas, the New Approach - a combination of technical regulations that are limited to essentials
and  standards  that  can  more  easily  be  adapted  to  technical  change  –  may  be  able  to  play  a
useful role.

4.3.3.

Economic Barriers

Technically mature technologies can be held back by inconsistent pricing structures and non-
internalisation  of  external  costs.  Several  priority  measures  in  the  ECCP  addressed  this
important  aspect,  by  allowing  support  schemes  (proposal  on  combined  heat  and  power14,

14

COM(2002) 415 final.

12

                                                
Directive on renewable energy sources for electricity15) or improving taxation and/or charging
systems (e.g. transport infrastructure use and charging)16.

In  addition,  the  step  from  pilot  projects  towards  large-scale  application  usually  needs  to  be
accompanied by considerable investment but:

– 

– 

Investment  is  more  likely  if  there  is  sufficient  confidence  that  there  will  be
demand for the technologies, while increased demand is dependent on the cost
reductions that arise from large-scale application. The setting of targets in the
bio-fuels proposal17 created more certainty for long term investment decisions.

The  needed  investment  requires  access  to  financing  (equity,  loans),  but
investors may be put off by perceived risks of the new technology.

Barriers to market penetration for competitive technologies can  arise from ‘split incentives’,
i.e.  when  the  owner/buyer  of  equipment  does  not  pay  the  running  cost.  This  can  mean  that
'win-win' solutions are not adopted, for example, in relation to insulation or energy efficient
heating of rented housing.

4.3.4.

Social Barriers

General lack of awareness, data/information or experience can be a barrier to adoption. This is
why,  for  example,  a  public  awareness  campaign  and  a  campaign  for  takeoff  on  energy
efficiency are deemed necessary.

4.4.

Next Steps

The ECCP demonstrates the importance of integrating climate change into other policy areas.
This process needs to be strengthened and widened:

– 

– 

The 10 new Member States joining the EU are expected to show rapid growth,
supported  by  substantial  EU  funds.  In  order  to  prevent  greenhouse  gas
emissions  from  rising  accordingly,  and  given  the  long-term  effects  of
investments  in  the  transport,  energy  and  waste  sectors,  the  Issue  Group  will
explore ways to better integrate climate change considerations into investment
decisions.

The  CAP  reform  proposals18  include  a  number  of  instruments  to  better
integrate environmental concerns, which are expected to contribute directly to
greenhouse gas mitigation and create increased possibilities for Member States
to insert climate change  considerations  into their  national  Rural  Development
Plans.

Setting  politically  agreed,  long-term  targets  -  in  combination  with  adequate  policies  and
measures  -  convinces  market  players  to  invest  and  lift  emerging  technology  to  large-scale
application, thereby realising a “technology push”. The scope for further technology push will
be examined in the context of the "Coalition of the Willing".

15

16

17

18

(RES-E) - 2001/77/EC – see:
http://europa.eu.int/eur-lex/pri/en/oj/dat/2001/l_283/l_28320011027en00330040.pdf
see the Transport White Paper (COM(2001) 370).
COM(2001) 547 final.
COM(2002) 23 final.

13

                                                
The Issue Group will also assess future RTD needs for policy support in climate change and
related  areas  and  ways  of  mainstreaming research with  policy  making.  Already  Technology
Platforms  and  Public-Private  co-operation  can  be  identified  as  relevant  options.  Forward
looking analysis for the time horizon of Kyoto and beyond carried out currently in European
institutes will set the stage.

A  comprehensive  analysis  of  the  support  being  given  to  promising  technologies  (e.g.
hydrogen,  fuel  cells  and  photovoltaics)  will  be  undertaken  to  assess  whether  their  market
breakthrough can be better supported.

5.

SUSTAINABLE PRODUCTION AND CONSUMPTION

The concept of sustainable production and consumption (SPC) covers a wide range of issues
such as production processes, the eco-design of products, new concepts of products-services,
and consumption and lifestyle aspects. A number of barriers in this domain can be illustrated
with the example of technologies in the area of waste management both in relation to material
recovery  (e.g.  recycling  and  composting),  energy  recovery  (e.g.  incineration,  pyrolysis  and
gasification) and final disposal (landfills)19.

5.1.

Barriers

5.1.1.

Regulatory Barriers

Waste legislation is  designed  to  give  rules ensuring the sound management of waste.  These
rules need to be controlled and enforced. This implies administrative procedures that may be
perceived as a regulatory barrier. Most prominently, this has led to a debate on the definition
of waste (e.g. the distinction between waste and non-waste).

Complying with Community and national rules on waste  management also  means that local
authorities  cannot  decide  on  all  aspects  of  waste  management  themselves.  In  particular,  the
principle that waste for recovery is subject to the application of internal market rules20 means
that  local authorities cannot  oblige  private  actors  to  deliver  waste  to  particular  installations.
This can be a barrier - for example if expensive high standard installations risk not getting the
waste  necessary  to  fill  their  capacity.  This  underlines  the  need  for  harmonised  minimum
requirements  at  Community  level  for  recovery  installations  to  avoid  the  waste  going  to
cheaper, less performing installations. Community legislation therefore has a crucial influence
on whether waste management technology is viable.

Whilst  technical  standards  may  boost  the  direct  re-use  of  component  recycled  materials  by
increasing  confidence  in  the  quality  and  properties  of  the  material,  they  may  in  some  cases
also act as a barrier.

Similarly, authorisation procedures are necessary for safety reasons but the lack of a uniform
authorisation  procedure  can  force  a  company  to  go  through  separate,  and  often  lengthy,
approval procedures for every Member State.

19

20

This paragraph builds on the preliminary analysis undertaken by the IPTS in the context of the work of
the Sustainable Production and Consumption Issue Group.
With certain limited exceptions.

14

                                                
5.1.2.

Economic Barriers

Price signals are  a significant barrier  if  they  dissuade business  from  investing.  High  cost  of
collection, sorting and recycling operations in comparison with alternative waste management
options  may  influence  the  competitiveness  of  recycling  industries  and  of  those  providing
“cleaning” technologies. This is particularly true for the recovery of materials from “difficult”
waste streams (e.g. households wastes) for which even demand can sometimes be insufficient
and dissuades  investment  in more advanced technologies.. Promising  technologies  are  often
more likely to pay off in the medium to long term. However, this is not yet sufficiently well
recognised, leading to too many decisions focusing on the short-term. On the other hand, long
natural investment cycles involving pay- back times of up to 30 years, may act as a barrier to
short-term changes in production processes.

5.1.3.

Social Barriers

The  acceptance  of  specific  technologies  in  the  area  of  waste  management  (e.g.  Anaerobic
Digestion as a form of material recovery) is often hampered by an imprecise knowledge of the
associated environmental and economic benefits.

Recycling activities may be constrained by quality and safety constraints (e.g. in the case of
recycled tyres where concerns over safety stand in the way of their increased market share).

Relevant actors are not always aware of promising waste management options. This points to
the  need  to  stimulate  co-ordination  of  actions  and  exchange  of  best  practices21.  A  good
example of which is the ongoing work on a Best Available Technology Reference document
on waste treatments in the context of the Integrated Pollution Prevention and Control.

There is insufficient investment in human resources with training needed to develop, use and
maintain new technologies.

Even  though  many  new  eco-materials  are  available,  they  are  often  not  demonstrated  on  a
large-scale  basis.  More  generally,  dissemination  is  a  particular  problem  in  the  international
context  where  countries  may  fail  to  take  advantage  of  potentially  efficient  technologies  or
adopt obsolete technologies.

5.2.

Next Steps

In its further work, the Issue Group will concentrate on:

(cid:1)  production processes (including input of raw materials and energy, process design,

organisation of production)

(cid:1)  products (including eco-design, and new concepts of “products/services”)

(cid:1)  consumption and lifestyle aspects such as e-work

21

See  in  this  respect,  for  example,  the  recent  EEA  topic  report  2/2002  “Case  studies  on  waste
minimisation  practices  in  Europe”  which  contains  a  catalogue  of  successful  examples  of  waste
prevention, recycling and cleaner technology in Europe.

15

                                                
(cid:1)  a  number  of  specific  sectors  (both  industrial  sectors  and  non-industrial  ones)  in
order  to  illustrate  barriers  and  identify  good  practice  that  could  add  value
elsewhere

The  Issue  Group  will  combine  the  analysis  of  environmental  technologies  of  a  horizontal,
cross-sector  nature  with  the  assessment  of  sector  specific  ones.  Examples  of  cross-sectoral
technologies  that  will  be  considered  are  biotechnology,  eco-design  and  the  concept  of
product-services.  Examples  of  sectors  that  will  be  examined  are:  pulp  and  paper;  iron  and
steel;  non-ferrous  metals;  refineries;  waste  management;  mining  and  quarrying;  plastics;
construction; as well as agriculture and fisheries if appropriate.

5.3.

Stakeholder Consultation

To  complement  the  Commission's  own  expertise,  an  Advisory  Expert  Group  will  be  set  up
consisting of around 30 participants from research, industry, NGOs, and public bodies. Where
necessary,  more  specific  issues  (both  cross-sector  and  sector-specific)  will  be  examined  by
separate Working Groups. These may be specifically established for this purpose or, ideally,
take advantage of existing frameworks.

6.

WATER

The serious environmental and socio-economic concerns in the water area, combined with the
innovation-friendly  approach  of  the  Water  Framework  Directive,  have  created  a  favourable
background  for  the  development,  dissemination  and  use  of  technologies.  For  example,  new
environmental  quality  objectives  make  technologies  that  today  are  not  economically
competitive become so. However, barriers still exist.

6.1.

Barriers

6.1.1.

Technical Barriers

The passage from laboratory developments to full-scale applications often takes too long or is
not completed.  This dissuades  investment  in  promising  technologies,  especially  from  SMEs
without the financial strength to see through this period. A good example of how this problem
was overcome was when the Netherlands government launched a three-year applied research
programme aimed at removing Nitrogen and Phosphorus from existing waste water treatment
plants. By involving end-users and water industries, and because of the specific focus of the
programme, innovative technologies were quickly identified and introduced.

6.1.2.

Regulatory Barriers

EU water-related legislation sets binding environmental and/or health standards, but provides
full flexibility as to how to achieve these objectives. Legislation thus permits and encourages
progress  in  environmental  technology.  However,  the  sector  of  water  supply,  distribution,
collection  and  treatment  is  traditionally  “conservative”  because  of  the  size  and  long-term
nature  of  infrastructure  investment.  This  conservatism  is  one  reason  why  concepts  such  as
decentralised systems, multiple networks, and vacuum sewers are often not adopted.

16

This conservatism can also be reflected in the poor use of existing technologies. For example,
the Court of Auditors noted that "A large number of projects were designed a long time before
their construction started and had not always been adapted to take account of population and
pollution increases or technological changes."22

The  projects  and  infrastructure  financed  through  public  funds  have  a  general  tendency  to
apply conventional and well-known technologies, even though the assessment of the proposed
technologies is based on their environmental impact as well as on cost-benefit analyses.

6.1.3.

Economic Barriers

Water  pricing  often  does  not  take  into  account  the  resource  costs  and  the  external
environmental costs, and so lead to water being either wasted or polluted. This can be seen,
for example, in the low take-up of water saving technologies by households.

6.1.4.

Social Barriers

There may be insufficient benchmarking and identification of best practice projects.

6.2.

Next Steps

This  preliminary  analysis  reported  above  will  be  developed  into  a  more  comprehensive
analysis concentrating on barriers and packages of measures. This work will include a focus
on:

– 

– 

– 

The role of public funds in promoting clean technologies with, in particular, the
forthcoming review of Structural Funds to be borne in mind.

Economic  measures  and  incentives  in  the  context  of  the  Water  Framework
Directive,  which  has  as  one  of  its  key  pillars  water-pricing  based  on  cost
recovery including environmental and resources costs.

Improving the diffusion of high quality information at all levels, from specialist
to general public and, in particular, whether there is scope to improve the links
between research programmes and demonstration programmes.

6.3.

Stakeholder Consultation

For  this  preliminary  analysis,  the  Water  Issue  Group  held  an  initial  consultation  with  25
stakeholder  entities  representing  experts,  scientific  associations,  professional  organisations,
industrial  organisations  and  NGOs.  The  replies  provided  a  good  spectrum  of  views  on
promising technological evolution and the barriers slowing down the innovation process. This
stakeholder consultation will be continued and expanded.

22

Extract from: European Court of Auditors, special report n°3/98 concerning the implementation by the
Commission of EU policy and action as regards water pollution.

17

                                                
7.

SOIL PROTECTION

The  pressures  of  population  and  development  (agricultural,  industrial  and  other)  have
increased and, with them, so have concerns about environmental impacts on soil. In response,
soil protection was addressed by a recent communication23 and the 6th Environmental Action
Programme requires a Thematic Strategy on Soil Protection.

The  proposed  Thematic  Strategy  for  Soil  Protection  will  identify  needs  and  deliverables
related to protection and sustainable use of soil. In particular, soil erosion, organic matter and
contamination  will  be  dealt  with.  A  legislative  initiative  on  soil  monitoring  has  been
scheduled for 2004. The emphasis will be on a comprehensive approach including integration
of soil protection issues into Community policies.

Given the complexity and, in some respects, evolving policy framework, it was decided not to
start  the  analysis  of  soil  protection  until  2003.  This  will  allow  the  Issue  Group  to  learn  the
lessons from the preliminary analysis of the other environmental issues. It will also allow the
analysis  to  be  developed  in  parallel  with  the  development  of  the  Thematic  Strategy,  and
taking  into  account  the  considerable  research  into  environment  technologies  for  soil
protection.

8.

THE WAY FORWARD

The analysis so far has confirmed that there are promising technologies that can deliver both
environmental  and  economic  improvements.  Some  of  these  technologies  are  still  under
development  but  have  the  potential  to  result  in  not  just  incremental  but  also  fundamental
innovation.  Other  technologies  are  ready  to  be  used  but  are  unable  to  penetrate  the  market
because of a number of technical, economic, regulatory and social barriers.

In  particular,  economic  barriers  are  consistently  a  problem  with  price  signals,  costs,
competitiveness considerations and long investment cycles often deterring investment. Also,
problems  with  the  dissemination  of  new  solutions  seem  similar  across  the  board.  There  are
though differences, especially with regards to regulatory barriers, which support the splitting
of the analysis according to environmental issues.

8.1.

Measures for discussion

Over the coming year it will be necessary to deepen the analysis and examine the emerging
action points with stakeholders. The Commission does  not wish to  prejudge the outcome of
any such debate by making concrete proposals for action. However, the preliminary analysis
reported  in  this  Communication  suggests  the  following  possible  measures  could  act  as  the
basis for a dialogue with stakeholders:

8.1.1.

Technical Measures

(cid:1)  Targeting research using initiatives such as Technology Platforms, Public-Private
co-operation  in  promising  technologies,  Investor’s  support,  Decision  maker’s
Forums and special applied research programmes

23

COM(2002) 179final, "Towards a Thematic Strategy for Soil Protection".

18

                                                
(cid:1)  Organising and supporting co-operation between universities, research centres and
industries  using  measures  such  as  networks  of  excellence,  standardisation,
integrated projects and Stakeholder Forums.

8.1.2.

Regulatory Measures

(cid:1)  Make  sure  that  investment  decisions  relating  to  long-term  infrastructure  are
innovation  friendly.  The  Commission  will  examine  the  scope  to  do  this  in  the
context of the reform of the Structural Funds or other EU policy areas.

(cid:1)  Remove  regulatory  barriers  to  the  market  penetration  of  new  technologies,
including legislative requirements tailored towards any specific technologies.

(cid:1)  Assess the feasibility of existing and future regulation in terms of environmentally

and economically viable technologies.

(cid:1)  Remove  barriers  to  competition  reviewing,  for  example,  unnecessary  delays

caused by authorisation procedures that differ between Member States.

8.1.3.

Economic Measures

(cid:1)  Ensure that markets are not sending the wrong price signals. For example, in the
water  sector,  it  is  necessary  to  exploit  the  potential  of  the  Water  Framework
Directive  to  this  end  especially  in  the  context  of  the  reform  of  the  Common
Agricultural Policy; in the context of sustainable production and consumption we
need  to  ensure  that  private  and  public  entities  are  properly  informed  and
encouraged to adopt new technologies.

(cid:1)  Identify  more  specifically  the  barriers  to  integrated  technologies  (as  opposed  to
end-of-pipe technologies) as a means of sustainable production and consumption.

(cid:1)  Develop sector specific measures to harness the ability of business to innovate: for

example, using eco-efficiency approaches and Integrated Product Policy.

8.1.4.

Improving the Diffusion of New Solutions

(cid:1)  Work with stakeholder to understand, and remove, the barriers to the diffusion of

environmental technologies.

(cid:1)  Support the translation  of  pilot  projects  into  large-scale  applications  building  on

experiences with demonstration programmes such as LIFE.

(cid:1)  Identify  ways  of  improving  the  diffusion  of  cost-effective  environmental
technologies  to  countries  outside  the  EU,  and  in  particular  water  and  renewable
technologies  in  line  with  the  agreement  at  Johannesburg.  Ways  to  improve
partnerships  with  developing  countries  including  with  the  support  of  existing
public  funds  and  mechanisms  such  Clean  Development  Mechanism,  Global
Environment Facility, Development aid, international standardisation etc….).

Table  1  provides  a  summary  of  the  potential  measures  for  discussion  with  stakeholders,
breaking them down according to the different environmental issues.

19

Table 1: Potential Issues for Discussion with Stakeholders

Issues
Barriers

Climate Change

Sustainable 
and Consumption

Production

Water

still
development

Technologies 
at 
stage

-  Encourage  promising  technologies  through  national  programmes  and  the  6th

Technical barriers

Framework Programme for Research

-  Give priority to environmental technologies in the European research Area
- 

Improve co-ordination of research between scientific community and business

Conservative  use
of public funds

Identify  whether  this
is an issue

Identify  whether  this  is  an
issue

Regulatory barriers

Identify  whether  public
procurement 
and
infrastructure  choices  can
be 
innovation
friendly

more 

Legislative
requirements
Barriers  to  Single
Market

Wrong 
signals

price

Assess  whether  existing  legislation  acts  as  a  barrier  to  the  market  penetration  of
innovative technologies.
Promote competition by facilitating standardised authorisation procedures.

Economic Barriers

Develop area specific
measures, 
such  as
emission trading

Ensure  a  level  playing  field
for  recycling  activities 
in
comparison  to  other  waste
management options.

Develop  water pricing that
reflects  environmental  and
social  impacts  in  context
of  Water 
Framework
Directive

Business  potential
not realised.

-  Encourage  business  to  use  new  technologies  and  in  particular  to  invest  in

cleaner (integrated) technology rather than end-of-pipe technologies

-  Establish Technological Platforms
- 

Identify measures to ensure development of new technologies is rewarded

Diffusion of Technologies

Dissemination
slow

-  Encourage  exchange  of  information  and  best  practice  through  networks,
and  Control,  Stakeholder  Forums,

Integrated  Pollution  Prevention 
standardisation etc.

-  Design  demonstration  programmes  (such  as  LIFE,  RTD  demonstration

Global  technology
transfer

-  Possible review of export promotion measures
-  Develop research and innovation partnerships with developing countries

projects)

8.2.

Questions for Stakeholders

One  of  the  main  aims  of  this  Communication  is  to  facilitate  future  discussion  with
stakeholders, and develop with them concrete proposals. Over the coming six months it will
be necessary to broaden and deepen the analysis for all of the issues. This can best be done by
taking advantage of the research community, the businesses that produce the technologies and
the  people  who  use  them.  This  is  why  the  Commission  wants  to  work  with  stakeholders  to
develop the action points.

As one means of enabling stakeholders to contribute, key questions for discussion are set out
below. Responses are invited to these questions, but do not need to be limited to them.

1.  What  conditions  must  be  met  to  ensure  that  environmental  technologies,  in
addition  to  providing  increased  environmental  quality,  also  contribute  to
growth and employment?

2.  What  is  the  scope  for  action  at  EU  level  in  the  area  of  environmental
technologies?  What  lessons  can  be  learned  from  experiences  at  national  and
international level? How should action at EU level build on such initiatives?

20

3.  Have  we  identified  the  right  barriers  for  the  development  and  uptake  of
environmental technologies? What other barriers should we examine? At which
stage of the innovation cycle (R&D, demonstration, market penetration etc.) are
the most important barriers located?

4. What  should be the  role  of  different  stakeholders  (the  research  community,
business,  households,  and  public  authorities)  in  eliminating  the  barriers?
Should co-ordination and co-operation between these actors be improved and if
so how?

5.  How  can  specific  areas  of  public  policy  including  EU  and  national
environmental,  R&D,  innovation,  industrial,  education,  employment,  trade,
regional  and  transport  &  energy  policy  contribute  to  promote  environmental
technologies?

6.  Which  potential  measures  and  issues  do  we  need  to  examine  further?  In
particular:

a)  How  can  we  encourage  business  to  invest  further  in  the  adoption  of

environmental technology?

b)  How  can  we  shift  investment  from  end-of-pipe  to  cleaner  (integrated)

technologies?

c)  What economic  measures should we  examine at  the  different  stages  of

the innovation cycle?

d)  What  measures  should  we  examine  in  the  area  of  diffusion  of

environmental technologies both within and outside Europe?

e)  How  can  we  improve  global  technology  transfer  and  promote  global

partnerships?

f)  What  incentives  can  be  given  to  invest  more  private  funds  in  research

for environmental technology?

g)  How  can  we  ensure  that  there  are  adequate  education  and  training

facilities ?

Responses are invited to these questions by 15 May 2003 to:

European Commission
Environmental Technology Consultation
DG Environment
Rue de la Loi/Wetstraat 200
B-1049 Bruxelles/Brussels

E-mail: env-technology@cec.eu.int

8.3.

Next Steps

The  Issue  Groups  will  continue  their  analysis  in  line  with  the  orientations  set  out  in  the
Chapters above. For example, they will investigate further the reasons why markets are often
biased  against  environmental  technologies,  the  regulatory  barriers  to  their  uptake,  and  the

21

ways to motivate business to adopt them. Responses to the questions above from the  public
will  be  fed  into  the  discussions  of  the  Issue  Groups  when  they  are  received.  In  particular,
responses will be discussed in the Issue Groups with the expert stakeholders.

As  noted  above,  these  Issue  Groups  will  include  experts  -  20  to  30  expert/stakeholders
maximum  -  from  industry,  the  research  community,  NGOs  and  government.  The  input  of
these  experts  will  allow  the  Action  Plan  to  identify  the  problems  and  the  real  needs  of
producers and users of environmental technology.

The  Issue  Groups  will  provide  their  draft  recommendations  in  the  autumn  of  2003.  The
Commission will then publish its proposal for an Action Plan towards the end of 2003.

22