Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Report of the Environmental Technologies Action Plan (2005-2006) [SEC(2007) 413]
Date: 2007-05-02
Institutions: European Commission
Subjects: EU environmental policy, climate change, ecology, environmental protection, research and development, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.5.2007 
COM(2007) 162 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Report of the Environmental Technologies Action Plan (2005-2006) 

[SEC(2007) 413] 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Report of the Environmental Technologies Action Plan (2005-2006) 

(Text with EEA relevance) 

The scientific evidence is now overwhelming: climate change is a serious global threat, and it 
demands  an  urgent  global  response…if  we  don’t  act,  the  overall  costs  and  risks  of  climate 
change could rise to 20% of GDP or more1 

The Stern Review, 2006 

Human activity is putting such strain on the Earth that the ability of the planet’s ecosystems to 
sustain  future  generations  can  no  longer  be  taken  for  granted…60%  of  world  ecosystems 
services have been degraded or used unsustainable…2 

UN Millennium Ecosystem Assessment, 2005 

Humanity's  Ecological  Footprint  now  exceeds  the  world's  capacity  to  regenerate  by  about 
25%....we  have  been  exceeding  the  Earth's  ability  to  support  our  lifestyles  for  the  past  20 
years,  and  we  need  to  stop.  We  must  balance  our  consumption  with  the  natural  world's 
capacity to regenerate and absorb our wastes. If we do not, we risk irreversible damage3 

WWF, Living Planet Report, 2006 

1. 

ECO-INNOVATION FOR GROWTH, JOBS AND ENVIRONMENT 

Environmental threats are advancing 

Environmental  threats  are  advancing  –  more  rapidly  than  originally  expected.  We  can  still 
counter these threats if we act now. Systematic and cohesive action is needed at European and 
global level. The question is: "How can we act most effectively and in time?" We can do this 
in a way that sustains economic growth. In using the right tools to promote innovation we can 
meet the challenges facing us. Europe is in a position to lead the way. 

Eco-innovation offers solutions and opportunities  

To advance we have to turn around our industrial processes, products and business practices. 
We  need  eco-innovation  and  environmental  technologies4  to  make  the  leaps  and  bounds. 

1 
2 
3 
4 

Stern Review: the Economics of Climate Change 
Millennium Ecosystem Assessment 
Living Planet Report 2006 
Eco-innovation  means  any  innovation  that  benefits  the  environment  –  embracing  technological 
innovation, process innovation and business innovation 

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Technology  can  now  contribute  to  the  solutions.  Our  ultimate  aim:  that  eco-innovation 
becomes pervasive across all industries. In this way we can meet many of the environmental 
challenges facing us today. Through appropriate measures, e.g. financial support or regulation 
we can support eco-innovation and steer market forces towards a world-leading economy that 
is both competitive and green.  

Eco-innovation is now a cornerstone of EU strategy  

The renewed EU Lisbon Strategy identifies environmental technologies as having "significant 
economic,  environmental  and  employment  potential"5.  The  2006  Spring  Council  endorsed 
"strong  promotion  and  diffusion  of  eco-innovations  and  environmental  technologies"6.  The 
renewed EU Sustainable Development Strategy identifies ETAP as necessary for addressing 
climate  change,  clean  energy,  sustainable  consumption  and  production7.  The  planned 
European  Institute  of  Technology,  is  expected  to  give  high  priority  to  environmental 
challenges8.  

Presidencies highlight need for eco-innovation  

Eco-innovation has also been recognised by the Council Presidencies. The UK and Austrian 
Presidencies  established  eco-innovation  and  environmental  technologies  as  instrumental  to 
growth  and  jobs.  The  Finnish  Presidency  promoted  "a  new  generation  of  environmental 
policy", based on eco-efficiency and eco-innovation9. The current German Presidency urges a 
"new deal" on environment, economy and employment10.  

Reporting on progress and priorities for the future 

ETAP is the EU Environmental technologies Action Plan11 to stimulate eco-innovation and 
the  take-up  of  environmental  technologies  on  a  broad  scale.  Launched  in  2004,  the  plan 
maps  out  action  at  European  level,  by  Member  States,  and  stakeholders.  A  first  report  was 
published in 200512. The present report: 

•  Sketches trends and developments  

•  Outlines progress on implementation of the Plan  

•  Recommends priority areas for future action 

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6 
7 
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10 

11 
12 

COM(2005) 330 final 
Council 7775/06 
Council 10117/06 
ec.europa.eu/education/policies/educ/eit/index_en.html 
Presidency Conclusions, July 2006 Turku, Finland 
Ecological  Industry  Policy,  Memorandum  for  a  "New  Deal"  German  Ministry  for  the  Environment 
(2006) 
COM (2004) 38 final 
COM(2005) 16 final 

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2. 

TRENDS AND DEVELOPMENTS 

Eco-innovation and eco-regulation 

The  potential  of  European  business  to  eco-innovate  is  underestimated.  Evidence  shows  that 
well designed legislation does act as a driver for innovation and environmental technologies 
which in turn can help companies in significantly reducing costs.13 Full implementation of EU 
legislation such as Eco-design, IPPC, WEEE and RoHS will further enhance eco-innovation 
in the future.  

Eco-industries contribute to EU economy and jobs 

European  eco-industries  are  a  significant  but  quickly  growing  portion  of  the  EU  economy 
representing  2.1%  of  EU  GDP14.  Eco-industries  include  for  instance:  air  pollution  control, 
waste water management, solid waste management, soil remediation, renewable energies, and 
recycling. Eco-industries and services sustain 3.5 million full-time jobs. Around 75% of these 
are in labour intensive sectors such as water and solid waste management.  

Strong Growth  

There is strong growth in a number of sectors Europe and worldwide. Wind power installation 
has grown 20-25% in the last five years15. The worldwide photovoltaic market is expected to 
grow at 25-35% in the future16, and water management is expected to grow 6% annually in 
the next ten years17. The solid waste recycling sector has been growing at 4.5% annually in 
the period 2000-200418. 

Strong Global position  

European businesses involved in eco-industries are in a strong position worldwide. The EU is 
estimated to have 1/3 of world market share in eco-industries19. The Dow Jones Sustainability 
index  shows  that  European  companies  are  the  most  sustainable  in  13  out  of  18  major 
economic sectors20.  

Financial investments are on the increase 

Close  to  €2  billion  venture  investments  were  made  in  clean  technologies  in  2003-2006, 
corresponding  to  10%  of  venture  capital  in  Europe21.  Investments  increasingly  come  from 
established  firms22.  In  the  banking  sector,  sustainable  and  socially-responsible  investments 

13 

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17 
18 
19 
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22 

Innovation  Dynamics  Induced  by  Environmental  Policy  (2006)  and  Ex-post  estimates  of  costs  to 
business of EU environmental legislation (2006) 
Eco-industry, its size, employment perspectives and barriers to growth in an enlarged EU. (2006) 
Wind Force 10 GWEC (2005) 
Solar Generation EPIA (2006) 
Environment, Innovation, Employment. German Ministry for the Environment 2006 
European Business Facts and Figures 2005 
Analysis of the EU Eco-industries, their employment and export potential. ECOTEC (2002) 
Dow Jones Sustainability Indexes Annual Review (2006) 
European Cleantech Investment Report (2006) 
Cleantech goes global, Environmental Finance (June 2006) 

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have  increased  significantly  in  recent  years23.  At  EU  level,  the  European  Investment  Bank 
(EIB) has launched the €1 billion Climate Change Financing Facility (CCFF).  

However, we need to do much more to make environmental gains on the scale required 

All  these  positive  indications  contrast  sharply  with  those  of  the  state  of  the  environment. 
These give rise to serious concern and include: 

•  Threats of climate change and the levels of greenhouse gas emissions and the difficulties of 

reaching the Kyoto targets in the EU24 

•  Even though air quality in Europe has been steadily improving25, air pollution contributes 

to 750,000 years of life lost each year in Europe26. 

•  Eco-systems  are  being  eroded  at  unsustainable  rates  due  to  over-consumption  of  natural 

resources27. 

There is a pressing need for immediate and systematic action on a broad scale  

To  start  making  a  significant  difference  in  environmental  terms  –  over  a  relatively  short 
timescale – much greater levels of deployment and take-up of environmental technologies 
are  required  at  EU  and  global  level.  Eco-innovation  has  to  be  the  mainstream  of  Europe's 
innovations  and  be  the  required  norm  across  the  whole  economy.  There  is  no  time  for 
complacency.  

3. 

PROGRESS ON IMPLEMENTING THE PLAN 

Progress is described against the main lines of the Plan. 

3.1. 

GETTING RESEARCH TO MARKETS  

Increase and focus research and demonstration 

Since the launch of ETAP, about €1.4 billion has been awarded to environmental technology 
projects  under  the  6th  Framework  Programme.  Under  the  7th  Framework  Programme  it  is 
estimated that up to 30% of the €32 billion budget will address environmental technologies. 
This includes: hydrogen and fuel cells, clean production processes, alternative energy sources, 
CO2  sequestration,  bio-fuels  and  bio-refineries,  energy  efficiency,  information  technologies 
for  sustainable  growth,  clean  and  efficient  transport,  water  technologies,  soil  and  waste 
management, and environmentally friendly materials. 

23 
24 
25 
26 
27 

European SRI Study – 2006. European Social Investment Forum 
Greenhouse gas emissions trends and projections in Europe 2006. EEA (2006) 
LRTAP Convention Emission Inventory 1990-2004. EEA (2006) 
Health Aspects of Air Pollution WHO (2004) 
COM(2006) 216 final 

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Establish technology platforms 

More  than  30  Technology  Platforms  have  been  launched;  a  number  include  environmental 
technologies as part of their agendas28. Some platforms intend to implement part of their aims 
through joint technology initiatives (JTI) by creating public-private partnerships.  

Technology Verification  

Work  on  an  Environmental  Technologies  Verification  System  is  progressing.  There  is 
evidence  that  lack  of  verification  continues  to  hamper  access  to  new  environmental 
technologies29. A number of research projects30 are currently defining the basis of a scheme in 
the areas of water treatment, soil remediation and air pollution. Among the planned outputs 
are  protocols  for  the  testing  of  these  technologies.  A  market  survey  is  being  carried  out  to 
identify  appropriate  application  areas31.  A  pilot  scheme  by  the  LIFE  Programme  will  test  a 
verification system based on 10-15 technologies.  

Towards a European Strategic Energy Technology Plan 

The  recently  adopted  Strategic  Energy  Technology  Plan32  aims  to  lower  the  cost  of  clean 
energy and to put EU industry at the forefront of the rapidly growing low carbon sector. The 
plan identifies those technologies for which the EU has to mobilise resources and accelerate 
development and deployment. 

3.2. 

IMPROVING MARKET CONDITIONS 

Performance Targets  

Studies have been carried out to set up a performance target scheme in the EU. This includes 
analysis of the Japanese Top-Runner programme33, performance targets for processes34, and a 
pilot project on the following product groups: cement, windows, tyres, manure treatment and 
textiles. Based on this work a public consultation will identify the best operational settings for 
the scheme, including the role of eco-labelling, energy labelling35, and the benchmarking of 
products. 

Mobilising Financial Instruments 

Important sources of financing now include: 

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29 

30 
31 
32 
33 

34 
35 

cordis.europa.eu/technology-platforms 
Environmental  Innovation  -  bridging  the  gap  between  environmental  necessity  and  economic 
opportunity (DTI 2006) 
www.promote-etv.org; www.est-testnet.net; www.eurodemo.info 
A market survey of companies on the potential of an EU wide verification system IPTS (forthcoming) 
COM (2006) 847. COM (2007) 1 final 
The  Top  Runner  Programme  in  Japan  –  its  effectiveness  and  implication  for  the  EU,  The  Swedish 
Environmental Protection Agency (November 2005) 
Performance Targets in Production Processes, IPTS (not yet published) 
Directive 92/75/EC and 2005/32/EC 

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•  Competitiveness and Innovation Programme (CIP) 

€433  million  has  been  allocated 
Entrepreneurship and Innovation pillar. 

to  promote  eco-innovation,  under 

the 

Approximately €228 million will be allocated to financing instruments in particular 
the  Growth  and  Innovation  Facility,  managed  by  the  European  Investment  Fund 
(EIF) who will co-invest money into risk capital funds in eco-innovation, with €205 
million on market replication projects and networks. €728 million will be on energy 
efficiency and renewable energies.  

•  European Investment Bank (EIB) 

The EIB and the Commission are developing a joint Risk Sharing Finance Facility 
(RSFF). The objective is to improve access to debt financing, for private and public 
sector  research  that  has  a  high  risk  profile.  €2  billion  will  be  available  for  projects 
falling  within  the  FP7  themes  and  the  mechanism  will  allow  the  European 
Investment Bank to grant loans up to €10 billion. 

•  Leverage Cohesion policy 

Currently around 21% of the Structural funds have been allocated to innovation, and 
the  Commission  has  called  on  Member  States  to  raise  this  share  in  the  new 
programming period. Eco-innovation, renewable energy, energy efficiency and clean 
urban  transport  are  priorities  in  the  Cohesion  policy  (2007-13).  The  Community 
Strategic  Guidelines  on  Cohesion  highlights  that  business  should  invest  in  eco-
innovation to be in a strong position in the future36.  

•  LIFE 

The  LIFE  environment  programme  has  co-financed  some  2,750  innovative  pilot 
demonstrations  projects  since  1992,  with  a  total  investment  of  over  €2.6  billion. 
Around  two-thirds  of  the  investment  supported  projects  promoting  environmental 
technologies37. 

Market-based Instruments 

The  Commission  has  recently  adopted  a  Green  Paper  on  market-based  instruments38.  This 
reviews  cost-effective  instruments  (such  as  taxes  on  energy,  transport  and  other  pollutant 
sources,  and  the  broader  use  of  emissions  trading  schemes)  that  could  be  used  alongside 
regulation and financial incentives. The paper aims to stimulate a debate on the use of these 
instruments at Community and national level.  

Review of State Aid 

The  Community  Framework  for  State  Aid  for  Research,  Development  and  Innovation  has 
been  adopted.  This  sets  the  conditions  under  which  Member  States  may  give  state  aid  to 

36 
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38 

Council Regulation 1083/2006 Council Decision 2006/702/EC 
ec.europa.eu/environment/life 
COM (2007) 140 final 

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research,  development  and  innovation.  The  Framework  includes  a  specific  mention  of  eco-
innovation39. Guidelines on state aid to support risk capital for SMEs have also been adopted. 
In addition, a review of the Guidelines on Environmental State Aid is currently in progress; 
this  will  include  conditions  for  aid  for  business  aiming  to  invest  in  environmental 
technologies. 

Green Procurement 

A  number  of  Member  States  have  started  to  implement  action  plans  on  Green  Public 
Procurement – others are in progress. The Commission's handbook on Green Procurement is 
being  widely  disseminated  in  all  EU  languages.  A  new  website  features  good  practice  and 
national  green  purchasing  strategies.  A  web-based  toolkit  is  being  prepared  to  include  legal 
and financial guidance for purchasing officers40.  

Raising Awareness  

A  new  ETAP  website  and  Newsletter  features  news  items,  policy  developments,  promising 
practice in Member States, as well as various examples of eco-innovations41.  

3.3. 

ACTING GLOBALLY  

Global financing opportunities 

The  EU  Thematic  Programme  on  Environment  and  sustainable  management  of  Natural 
Resources  (ENRTP)42
  covers  compliance  with  environmental  standards,  sustainable 
consumption  and  production,  and  can  promote  environmental  technologies.  The  Global 
Energy  Efficiency  and  Renewable  Energy  Fund  (GEEREF)43  will  provide  seed  capital  for 
renewable  energy  projects  in  various  regions.  The  EIB  and  the  Commission  are  currently 
exploring  how  to  cooperate  on  the  scheme.  The  EIB  Climate  Change  Financing  Facility 
(CCFF) will also enable some financing for projects globally. 

Responsible investment and trade 

In  the  context  of  the  WTO  negotiations  on  multilateral  trade  liberalisation  (Doha 
Development Round), the Commission has been at the forefront of pushing for the reduction 
or  elimination  of  tariffs,  as  well  as  the  abolition  of  non-tariff  barriers,  on  trade  in 
environmental goods, technologies and services. It also considering prospects for fast-tracking 
these  issues  in  the  regional  Free  Trade  Agreements  that  it  will  be  negotiating  over  the  next 
few years with some of its key trading partners, particularly in Asia. 

3.4. 

COORDINATION 

Sharing promising practice: the ETAP National Roadmaps 

Twenty-one Member States and Norway have completed roadmaps for implementing ETAP. 
These are available publicly and represent a significant body of knowledge on programmes, 

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ec.europa.eu/comm/competition/state_aid/reform/rdi_en.pdf 
See http://ec.europa.eu/environment/gpp 
ec.europa.eu/environment/etap 
ec.europa.eu/development/body/theme/environment/ENRTP.htm 
COM(2006)583 

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schemes,  and  examples  of  promising  practice,  in  Member  States44.  An  analysis  of  the 
roadmaps  shows  that  a  number  of  promising  schemes  are  being  put  into  place  by  Member 
States, and there is an opportunity to build on and learn from these across the EU (see Annex). 
Examples include:  

•  Germany's  feed-in  tariff  scheme  has  been  instrumental  in  boosting  use  of 
renewable energy – a number of Member States have adopted similar schemes. 

•  Italy's  national  decree  requires  that  at  least  30%  of  goods  purchased  by  public 

authorities be of recycled origin. 

•  Spain's  national  and  regional  policies  have  spurred  the  deployment  of  solar 

energy, through a number of coordinated measures. 

•  The  UK's  National  Industrial  Symbiosis  Programme,  aims  to  save  1  million 
tonnes of waste per region per year, through a brokerage scheme for companies. 

•  A  range  of  financial  schemes  to  promote  eco-innovation,  for  example  those 

established in the Netherlands, Denmark, Finland and Sweden.  

Stakeholder participation: the Forum on Eco-innovation 

The  Forum  on  eco-innovation  provides  a  platform  where  stakeholders  can  come  together, 
network  and  propose  future  action.  The  first  meeting  of  the  Forum  took  place  in  Poznan, 
Poland. The theme of the first Forum was “Financing Eco-innovation”. The Forum will take 
place twice a year on relevant themes45. 

4. 

ISSUES AND PRIORITIES FOR THE FUTURE  

Increase take-up - Increase demand 

To  start  making  a  difference  on  the  scale  required,  eco-innovation  must  become  pervasive 
across all business and industry. To make significant benefits, the rate at which environmental 
technologies  are  deployed  and  taken-up  must  increase  significantly  Large  environmental 
gains can be made by taking-up environmental technologies that already exist on the market, 
but  the  problem  is  that  many  remain  in  niche  markets.  One  example  is  the  energy  efficient 
light bulb still only accounts for less than 3% of European market share of light bulbs46. New 
driving  forces  have  to  be  put  into  place  to  encourage  the  diffusion  and  take  up  of  eco-
innovations on a broad scale.  

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ec.europa.eu/environment/etap/roadmaps_en.htm 
ec.europa.eu/environment/etap/forum_en.htm  
Residential Lighting Consumption and Saving Potential in the Enlarged EU JRC (2006) 

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The  Aho  report  on  creating  an  innovative  Europe47,  the  recent  Communication  on 
innovation48  and  others49,  urge  the  use  of  "demand  pull"  to  promote  innovation.  "Lead 
markets"  can  also  act  as  a  stimulus  for  demand50  51.  The  analysis  of  the  ETAP  National 
roadmaps (see Annex) shows that R&D activities on Environmental Technologies are carried 
out  systematically  in  almost  all  Member  States  –  however  policies  to  raise  demand  are  still 
carried out much less systematically.  

Systematic  and  coordinated  activity  on  the  demand-side  is  needed.  Green  Public 
to  green 
Procurement,  market  based-instruments,  financing  for  business 
technologies,  raising  awareness  in  business  and  with  consumers,  all  need  to  be  intensified. 
These  actions  can  raise  demand  at  both  European  and  Member  State  level  and  help  move 
environmental technologies and products to the mainstream.  

to  switch 

The  Commission  and  Member  States  should  actively  pursue  and  intensify  those  ETAP 
Actions that further create demand in a systematic, coordinated manner52:  

4.1. 

Further Green Procurement 

Public and private sector procurement are quite different in nature – but both can lead the way 
in purchasing behaviour and influence take-up.  

-  Public  sector  procurement  corresponds  to  around  16%  of  EU  GDP.  Considerable 
work  has  been  done  and  now  practical  implementation  needs  to  start  taking  place 
across Europe.  

- Private sector procurement is also important, although it is not governed by a set of 
comprehensive rules. Large companies influence and place demands on their chains 
of suppliers.  

•  Action:  Build  on  work  that  already  has  been  done  and  accelerate  Green  Public 
Procurement.  Diffuse  model  tender  specifications.  Prepare  Communication  on 
public  procurement  in  2007,  set  (voluntary)  targets,  and  give  guidance  on 
indicators and benchmarking.  

•  Action:  EC,  MS,  Relevant  stakeholders  develop  strategies  for  private  sector 

procurement. 

4.2.  Mobilise greater financial investments  

The financial sector (banks, insurance companies, pension funds, investors) can play a greater 
role  in  leveraging  businesses  and  industry  to  take-up  environmental  technologies.  The  eco-
innovation focus of cohesion policy, the EIB and EIF initiatives, and the establishment of the 
CIP,  are  all  steps  in  this  direction.  Actions  aimed  at  the  exchange  of  best  practice  and  at 

47 
48 
49 
50 
51 
52 

Creating an Innovative Europe. European Commission, EUR22005 (2006) 
COM(2006) 502 final 
A Will to Compete: a competitive, clean and clever Europe (2006) 
European Competitiveness Report. SEC(2006) 1467/2 
Competitiveness Council, 15717/06, December 2006 
Based  on  the  outcomes  of  the  Green  Paper  on  market  based  instruments,  further  actions  may  be 
undertaken 

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engaging  major  financial 
strengthened.  

institutions  across  Europe,  and 

internationally,  could  be 

•  Action: Implement EU financial instruments. Use Community financial resources 
to  lever  further  financing  commitments.  Convene  major  financial  institutions. 
Encourage guidelines and targets for financial investments on eco-innovation. 

4.3. 

Establish Technology Verification and Performance Targets systems  

Standards  can  set  performance  levels  and  provide  assurance  in  the  market.  Verification 
Systems  provide  the  market  with  reliable  measures  of  environmental  performance.  Setting 
performance targets for product groups can shift towards better environmental performance. 
Economies of scale can be gained if performance target systems drive forward products across 
a sector. Links between the performance target scheme and eco-labelling are currently being 
explored.  There  is  an  opportunity  to  upgrade  current  labelling  criteria  of  products  and 
services, such as the Eco-label, Energy label and Energy Star schemes, and to keep abreast of 
international developments on similar schemes.  

•  Action:  Finalise  studies  for  the  establishment  of  both  Technology  Verification 
and Performance targets. Run and finalise pilot schemes. Explore links with eco-
labelling  scheme.  Prepare  legislative  proposals  for  environmental  technology 
verification  (2008)  and  communication  on  performance  target  schemes  (2008). 
Revise  and  upgrade  current  labelling  schemes.  Keep  abreast  of  international 
schemes.  

4.4. 

Build on promising practice of Member States  

It  is  clear  from  the  ETAP  national  roadmaps  that  a  number  of  promising  policies  for 
promoting  eco-innovation  are  being  put  in  place.  There  is  a  significant  opportunity  to  learn 
and build on these schemes, particularly those that increase demand. A way of championing 
eco-innovation policies could benchmark and diffuse the most effective national schemes. In 
this  way,  Member  States  could  learn  from,  adapt  and  apply  similar  policies,  to  create  a 
multiplier effect across Europe. 

•  Action:  In  2007  establish  an  initial  phase  where  Member  States  propose  some 
best practice schemes and exchange experience. Develop rules of implementation 
for a full scheme in 2008.  

4.5. 

Focus on sectors with high gains  

In the short term, large gains can be made by focussing on sectors where large environmental 
yields can be made quickly (a "low hanging fruit" strategy). This involves focussing on those 
sectors where eco-innovations, environmental technologies, improved products, processes and 
services can yield high environmental gains. Sectors include:  

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•  Buildings 

•  Food and Drink 

•  Private transport 

•  Recycling and waste water industries  

Studies show that the environmental impacts of products are highest in the first three of these 
sectors53. Other studies indicate that these sectors also offer potential for sustainable growth54. 
For example, sustainable construction is now the focus of a joint Member State initiative55.  

The  instruments  of  research  funding,  green  procurement,  performance  standards,  financing, 
promising national practice and the optimisation of regulatory conditions, could be applied to 
promote  eco-innovation  in  these  sectors.  There  is  also  an  opportunity  to  bring  these 
approaches  to  bear  on  the  formulation  of  lead  markets  as  foreseen  in  the  Commission's 
Innovation Communication where eco-innovation can play a role. 

•  Action:  Starting  2007,  identify  key  sectors  where  EU  technology  and  products 

could lead worldwide, yielding high environmental and economic gains. 

Evolve Support measures 

In addition to the five actions to increase demand, support work of a more general nature is 
needed. 

4.6. 

Ensure a strategic knowledge resource on eco-innovation 

There  is  a  real  need  for  reliable  analysis  of  trends  in  the  area  of  eco-innovation.  Bringing 
together timely and strategic knowledge for European public organisations, relevant business 
and financers can enable further growth and investment56. Commission services are analysing 
how to effectively collect, synthesise and share such knowledge, in particular the feasibility of 
a "networked observatory" on eco-innovation, that would build on a range of existing projects 
and networks, and which could include some of the key observation institutes across Europe.  

•  Action: Ensure an effective, strategic knowledge resource on eco-innovation that 
would provide relevant statistics, and identify emerging trends and global business 
opportunities. 

4.7. 

Promote awareness and active participation  

An  important  aspect  of  raising  awareness  is  to  promote  active  participation  with  consumers 
and business. The establishment of the European Forum on eco-innovation is just one small 

53 

54 
55 
56 

Environmental Impact of Products EIPRO, and IMPRO looks at ways of reducing these impacts. The 
studies  are  based  on  life  cycle  analyses,  so  for  example,  "Buildings"  include  new  construction, 
maintenance,  repair  and  demolition.  Here  the  term  "Buildings"  is  used  instead  of  "Housing".  This 
includes furniture, domestic appliances and energy for purposes such as room and water heating.  
www.popa-ctda.net; www.ectp.org 
www.ukswedensustainability.org 
The ICT Observatory provides a similar service: www.eito.com  

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step  in  this  direction.  Similar  activities  could  be  carried  out  at  regional,  national  and 
international levels. 

•  Action:  Establish  actions  with  MS  under  the  framework  of  LIFE+.  Expand  EC 
level  communication.  Continue  running  the  European  Forum  and  expand 
participation. Promote eco-innovation internationally.  

4.8. 

Harnessing Research 

Outcomes  can  be  optimised  by  further  channelling  and  harnessing  research  under  the  7th 
Framework  Programme,  by  establishing  synergies  between  research  themes,  technology 
platforms, emerging lead markets and regulation. Research on the methodology of technology 
assessment  may  also  contribute  to  improve  future  verification  and  standardisation  systems. 
There  is  an  opportunity  to  promote  more  research  in  environmental  technologies  at  the 
international level.  

•  Action: Channel future research themes (2007-13) based on ETAP priorities and 

future lead markets where eco-innovation plays role. 

5. 

SUMMARY AND PRIORITY ACTIONS FOR THE FUTURE 

A lot of progress has been made – even more remains to be done. To respond to our global 
environmental  challenges,  to  make  eco-innovation  yield  large  scale  environmental  and 
economic benefits, to enable Europe to seize the opportunities – all activities have be stepped 
up and carried out on a new scale, with much more emphasis on demand. In summary, the 
focus is on 5 actions that increase demand and 3 support measures: 

INCREASE DEMAND: 

•  Further Green Procurement 

•  Mobilise greater financial investments 

•  Establish Technology Verification and Performance Targets systems 

•  Build on Promising Practice of Member States 

•  Focus on sectors with high gains 

SUPPORT MEASURES:  

•  Ensure a strategic knowledge resource on eco-innovation  

•  Promote awareness and active participation 

•  Harness Research 

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