COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A resource-efficient Europe – Flagship initiative under the Europe 2020 Strategy
Date: 2011-01-26
Institutions: European Commission
Subjects: EU policy, climate change, land use, natural resources, pollution control measures, raw material, world economy

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EUROPEAN COMMISSION 

Brussels, 26.1.2011 
COM(2011) 21 final 

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

A resource-efficient Europe – Flagship initiative under the Europe 2020 Strategy 

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

A resource-efficient Europe – Flagship initiative under the Europe 2020 Strategy 

1. 

INTRODUCTION: WHY IS RESOURCE EFFICIENCY IMPORTANT? 

Natural resources underpin the functioning of the European and global economy and 
our quality of life. These resources include raw materials such as fuels, minerals and 
metals  but  also  food,  soil,  water,  air,  biomass  and  ecosystems.  The  pressures  on 
resources are increasing. If current trends continue, by 2050, the global population is 
expected  to  have  grown  by  30%  to  around  9  billion  and  people  in  developing  and 
emerging  economies  will  legitimately  aspire  to  the  welfare  and  consumption  levels 
of  developed  countries.  As  we  have  seen  in  recent  decades,  intensive  use  of  the 
world's  resources  puts  pressure  on  our  planet  and  threatens  the  security  of  supply. 
Continuing our current patterns of resource use is not an option. 

In response to these changes, increasing resource efficiency will be key to securing 
growth  and  jobs  for  Europe.  It  will  bring  major  economic  opportunities,  improve 
productivity, drive down costs and boost competitiveness. It is necessary to develop 
new  products  and  services  and  find  new  ways  to  reduce  inputs,  minimise  waste, 
improve  management  of  resource  stocks,  change  consumption  patterns,  optimise 
production  processes,  management  and  business  methods,  and  improve  logistics. 
This  will  help  stimulate  technological  innovation,  boost  employment  in  the  fast 
developing 'green technology' sector, sustain EU trade, including by opening up new 
export markets, and benefit consumers through more sustainable products.  

Using resources more efficiently will help us achieve many of the EU's objectives. It 
will be key in making progress to deal with climate change and to achieve our target 
of  reducing  EU  greenhouse  gas  emissions  by  80  to  95%  by  2050.  It  is  needed  to 
protect valuable ecological assets, the services they provide and the quality of life for 
present  and  future  generations.  It  will  help  us  ensure  that  the  agricultural  and 
fisheries sectors are strong and sustainable and reduce food insecurity in developing 
countries. By reducing reliance on increasingly scarce fuels and materials, boosting 
resource efficiency can also improve the security of Europe's supply of raw materials 
and make the EU's economy more resilient to future increases in global energy and 
commodity prices. 

A vision of where Europe should be in 2050 and a long-term policy framework can 
provide a clear path for businesses and investors. It is important to sharpen the focus 
on the action that has to be taken in the next ten years to put Europe on the right track 
and to speed up the transition. 

2. 

THE  EUROPE  2020  STRATEGY  AND  THE  FLAGSHIP  INITIATIVE  A  RESOURCE-
EFFICIENT EUROPE 

To  enjoy  the  benefits  of  a  resource-efficient  and  low-carbon  economy,  we  need  to 
fulfil three conditions: 

–  First, we need to take coordinated action in a wide range of policy areas and this 

action needs political visibility and support.  

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–  Second,  we  have  to  act  urgently  due  to  long  investment  lead-times.  While  some 
actions  will  have  a  positive  impact  on  growth  and  jobs  in  the  short-term,  others 
require  an  upfront  investment  and  have  long  pay-back  times,  but  will  bring  real 
economic benefits for the EU economy for decades to come.  

–  Third, we have to empower consumers to move to resource-efficient consumption, 

to drive continuous innovation and ensure that efficiency gains are not lost. 

A resource-efficient Europe is one of seven flagship initiatives as part of the Europe 
2020 strategy aiming to deliver smart, sustainable and inclusive growth1. This is now 
Europe's  main  strategy  for  generating  growth  and  jobs,  backed  by  the  European 
Parliament  and  the  European  Council2.  Member  States  and  the  EU  institutions  are 
working together to coordinate actions to deliver the necessary structural reforms.  

This  flagship  initiative  aims  to  create  a  framework  for  policies  to  support  the  shift 
towards a resource-efficient and low-carbon economy which will help us to: 

– 

– 

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– 

boost economic performance while reducing resource use; 

identify and create new opportunities for economic growth and greater 
innovation and boost the EU's competitiveness; 

ensure security of supply of essential resources; 

fight  against  climate  change  and  limit  the  environmental  impacts  of 
resource use. 

technological 
To  achieve  a  resource-efficient  Europe,  we  need 
improvements, a significant transition in energy, industrial, agricultural and transport 
systems, and changes in behaviour as producers and consumers. To give businesses 
the  certainty  which  they  need  to  invest  now,  and  to  ensure  that  future  generations 
benefit  from  smart  investment,  we  have  to  start  taking  action  immediately,  on  the 
basis of a regulatory framework that provides long-term stability. Improving resource 
efficiency  also  provides  an  opportunity  to  keep  costs  under  control  by  reducing 
material and energy consumption and thus to boost future competitiveness. 

to  make 

The  EU  has  already  shown  that  progress  on  resource  efficiency  is  possible. 
Recycling  has  started  to  become  a  normal  practice  for  businesses  and  households 
across the EU. Since 1990, we have reduced greenhouse gas emissions in the EU by 
more than 10% while our economies have grown by about 40%. We are reducing our 
reliance on fossil fuels by increasing energy efficiency and developing alternatives. 
However, we now need to accelerate progress, extend efforts to other areas and reap 
the benefits that a successful strategy can bring for competitiveness, job creation and 
prosperity.  

This flagship initiative will help build a strategic and integrated approach which will 
ensure that concrete actions already decided for 2020 pave the way towards longer-
term  goals  for  2050  and  that  appropriate  further  action  is  taken  to  achieve  our 
objectives.  It  will  ensure  that  we  optimise  the  synergies  inherent  in  such  a  broad-
based strategy, and that we identify and tackle the trade-offs as part of well-informed 
policy making. It requires a coherent analysis of the reasons why some resources are 
not used efficiently. From this starting point, it will be possible to make the case for 

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COM(2010) 2020, EUROPE 2020 A strategy for smart, sustainable and inclusive growth. 
European Council 17 June 2010 Conclusions; Document EUCO 13/10. 
http://ec.europa.eu/eu2020/pdf/council_conclusion_17_june_en.pdf.  

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mainstreaming resource efficiency into a wide range of policies, and to develop a set 
of tools to allow policy makers to drive forward and monitor progress. This will help 
build  the  clear  support  and  involvement  of  national,  regional  and  local  authorities, 
stakeholders and citizens. 

3. 

EXPLOITING SYNERGIES AND ADDRESSING TRADE-OFFS 

The complex and interlocking approach needed to build a resource-efficient Europe 
can only be achieved with a policy mix that optimises synergies and addresses trade-
offs between different areas and policies.  

The following are typical examples of synergies: 

•  jobs  created  in  sectors  linked  to  sustainable  growth  are  often  more  secure,  with 

high potential for exports and economic value creation;  

•  action on climate change and energy efficiency can increase energy security and 

reduce vulnerability to oil shocks;  

•  low-carbon technologies reduce emissions and often bring benefits in terms of air 

quality, noise and public health; 

•  taxes  and  subsidies  on  the  use  of  energy  or  other  resources  can  be  used  both  to 
steer  behaviour  leading  to  reduced  and  more  efficient  consumption  and  to  help 
restructure public finances away from labour taxation, which benefits job creation 
and economic growth; 

•  increasing  recycling  rates  will  reduce  the  pressure  on  demand  for  primary  raw 
materials, help to reuse valuable materials which would otherwise be wasted, and 
reduce  energy  consumption  and  greenhouse  gas  emissions  from  extraction  and 
processing; 

•  improving  the  design  of  products  can  both  decrease  the  demand  for  energy  and 
raw materials and make those products more durable and easier to recycle. It also 
acts as a stimulus to innovation, creating business opportunities and new jobs; 

•  improving energy efficiency reduces the need to generate energy in the first place 
and  the  need  for  infrastructures.  This,  in  turn,  eases  pressure  on  land  resources. 
For  example,  decreasing  EU  energy  consumption  by  1%  would  mean  that  we 
would not need the equivalent of 50 coal power plants or 25 000 wind turbines. 

Resource-efficiency  policies  need  to  address  appropriately  trade-offs.  In  order  to 
make  the  right  choices  both  now  and  for  the  longer  term,  we  need  to  consider  the 
whole  life-cycle  of  the  way  we  use  resources,  including  the  value  chain,  and  the 
trade-offs  between  different  priorities.  Having  the  information  needed  to  weigh 
different  choices  will  help  policy  makers  decide  where  to  focus  efforts.  These  are 
some examples: 

•  action to reduce unilaterally greenhouse gas emissions domestically may have an 
impact on the competitiveness of energy-intensive industry and lead to production 
and  the  associated  greenhouse  gas  emissions  and  employment  being  shifted 
abroad if corrective measures are not maintained; 

•  just-in-time  production  processes  reduce  the  energy  needed  to  store  products  in 
warehouses  but  may  also  require  more  transport.  This  may  also  be  true  for  the 
collection of waste and recycling; 

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•  deployment  of  'green'  vehicles  reduces  the  use  of  fossil  fuels  but  increases  the 
demand  for  electricity  and  certain  raw  materials,  some  of  which  are  subject  to 
supply  restrictions  and  concentrated  in  a  few  geographical  areas  (e.g.  rare  earth 
elements for electronic components and fuel cells, lithium for batteries); 

•  land  used  to  produce  food  may  compete with  land  use  for  energy  and  both  may 
compete  with  land  which  supports  biodiversity  or  provides  ecosystem  services 
such as absorbing carbon from the atmosphere; 

•  materials  to  improve  insulation  can  significantly  reduce  the  amount  of  energy 

required to heat a building, but could be more energy-intensive to produce; 

•  expanding  nuclear  power  can  reduce  carbon  emissions  but  requires  further 

enhancing of nuclear safety, waste management and non-proliferation; 

•  desalination can provide a solution to water supply problems but it may increase 

fossil fuel consumption and greenhouse gas emissions. 

4. 

COMPONENTS  FOR  DELIVERING  THE  RESOURCE-EFFICIENT  EUROPE  FLAGSHIP 
INITIATIVE 

A  key  aim  of  this  flagship  initiative  is  to  increase  certainty  for  investment  and 
innovation  by  forging  an  agreement  on  the  long-term  vision  and  ensuring  that  all 
relevant  policies  factor  in  resource  efficiency  in  a  balanced  manner.  It  provides  a 
long-term framework for action in many policy areas, supporting policy agendas for 
climate  change,  energy,  transport,  industry,  raw  materials,  agriculture,  fisheries, 
biodiversity  and  regional  development.  These  different  components  must  be  well 
coordinated.  

The key components of the long-term framework will come in the form of a series of 
coordinated roadmaps to3: 

•  Outline what the EU needs to do to create a low-carbon economy in 2050, cutting 
greenhouse  gas  emissions  by  80-95%,  as  part  of  global  efforts  to  fight  climate 
change,  while  improving  energy  security  and  promoting  sustainable  growth  and 
jobs; 

•  Analyse how the EU can create an energy system by 2050 which is low-carbon, 
resource-efficient,  secure  and  competitive.  This  should  provide  the  necessary 
certainty for investors, researchers, policy makers and regulators; 

•  Present  a  vision  for  a  low-carbon,  resource-efficient,  secure  and  competitive 
transport  system  by  2050  that  removes  all  obstacles  to  the  internal  market  for 
transport, promotes clean technologies and modernises transport networks; 

•  Define medium and long-term objectives and means for achieving them  with the 
main aim to decouple economic growth from resource use and its environmental 
impact. 

Medium-term  measures  should  be  consistent  with  this  long-term  framework.  A 
number of such measures have already been identified. These include:  

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An overview for 2011 is provided in Annex 1 based on the Commission Work Programme.  

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•  An  energy  efficiency  plan  with  a  time  horizon  of  2020  which  will  identify 
measures to achieve energy savings of 20% across all sectors, and which will be 
followed by legislation to ensure energy efficiency and savings; 

•  Proposals  to  reform  the  Common  Agricultural  Policy,  the  Common  Fisheries 
Policy,  Cohesion  Policy,  energy  infrastructure  and  trans-European  networks  for 
transport  in  the  context  of  the  next  EU  budget  to  align  these  areas  with  the 
requirements of a resource-efficient, low-carbon economy; 

•  A  new  EU  biodiversity  strategy  for  2020  to  halt  further  loss  to  and  restore 

biodiversity and ecosystem services in the light of pressures on ecosystems; 

•  Measures  to  tackle  the  challenges  in  commodity  markets  and  on  raw  materials4 
which will, amongst others, periodically assess critical raw materials and define a 
trade policy to ensure sustainable supplies of raw materials from global markets. 
These  measures  will  help  ensure  coherence  between  the  EU's  raw  materials  and 
external  policies,  including  the  promotion  of  good  governance,  transparency  of 
activities  and  creation  of  local  valued  added  in  developing  countries.  It  will 
promote extraction, recycling, research, innovation and substitution inside the EU; 

•  A strategy to make the EU a 'circular economy', based on a recycling society with 

the aim of reducing waste generation and using waste as a resource; 

•  Early  action  on  adaptation  to  climate  change  to  minimise  threats  to  ecosystems 
and  human  health,  support  economic  development  and  help  adjust  our 
infrastructures to cope with unavoidable climate change;  

•  A water policy that makes water saving measures and increasing water efficiency 
a  priority, in order to ensure that water is  available in  sufficient quantities, is of 
appropriate quality, is used sustainably and with minimum resource input, and is 
ultimately returned to the environment with acceptable quality. 

Further information on actions to be taken at EU level and at Member State level is 
included in the description of the resource-efficient Europe flagship initiative in the 
Communication from the Commission on the Europe 2020 strategy5. The following 
box contains specific examples of EU action already under way. More examples of 
resource  efficiency  measures  taken  by  Member  States  and  international  partners  as 
well  as  a  number  of  actions  taken  by  business  in  a  range  of  sectors  to  improve 
resource efficiency are provided on the Commission's website6. 

Concrete examples of EU action already under way 

As recognised in the Europe 2020 Innovation Union flagship initiative, stricter environmental targets 
and standards which establish challenging objectives and ensure long-term predictability, provide a 
major boost for eco-innovation. The Kyoto Protocol is an example of this. Analysis by the European 
Patent  Office  and  UNEP  has  shown  that  patenting  rates  in  clean  energy  technologies  significantly 
outpaced those related to fossil technologies after adoption of the Protocol in 19977. At EU level, the 
Climate and Energy package has gone a step further: reducing greenhouse gas emissions by getting 
the  prices  right,  targets  guiding  further  action,  fostering  new  technologies  and  diversifying  energy 
supply.  The  European  Emission  Trading  system  is  an  example  of  how  market  forces  can  be 
harnessed  to  give  incentives  for  more  efficient  use  of  resources.  Innovation  and  future  growth 

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COM(2011) 25. 
COM(2010) 2020, p. 14-15. 
http://ec.europa.eu/resource-efficient-europe 
http://www.epo.org/topics/issues/clean-energy/study.html 

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opportunities  are  fostered by the  resulting  carbon  prices which  internalise  the  costs of high-carbon 
resources.  

In 2008, the EU revised the legal framework for waste based on the entire product life cycle from 
generation  to  disposal,  with  emphasis  on  waste  prevention,  reuse,  recycling  and  recovery  ('waste 
hierarchy').  Member  States  must  prepare  waste  management  plans  covering  the  type,  quantity, 
sources of waste and collection systems. Waste prevention plans must also be drawn up with a view 
to breaking the link between economic growth and waste generation. Improved waste management 
could cut significantly CO2 emissions. For example, each year the EU disposes of 5.25 billion euro 
worth  of  recyclables  such  as  paper,  glass,  plastics,  aluminium  and  steel.  If  this  was  recycled,  the 
equivalent  of  148  million  tonnes  of  CO2  emissions  could  be  avoided  annually.  Improved 
management of municipal waste could result in 92 million tons of greenhouse gas emissions avoided 
in  2020  compared  with  1995.  At  least  500 000  new  jobs  would  be  created  in  Europe  if  countries 
recycled 70% of their waste. 

In the field of energy efficiency, the first nine measures under the Ecodesign Directive are expected 
to  reduce  power  consumption  by  some  340  TWh  by  2020,  i.e.  the  equivalent  of  the  output  of  77 
typical power stations. The recast Directive on energy performance of buildings which entered into 
force in July 2010 is expected to lead to a reduction of EU final energy consumption by 2020 in the 
order of 5%. Other EU policies, notably access to financing for energy efficiency under the Cohesion 
and  Structural  Funds,  are  also  having  positive  results.  France,  for  instance,  will  use  available  EU 
funds to more than halve energy consumption per square meter of its building stock. 

Resources are often used inefficiently because the information about the true costs to 
society  of  consuming  them  is  not  available  with  the  result  that  businesses  and 
individuals  cannot  adapt  their  behaviour  accordingly.  Policy  measures  to  improve 
resource  efficiency  and  overall  economic  competitiveness  must  place  greater 
emphasis  on  'getting  prices  right'  and  making  them  transparent  to  consumers,  for 
instance in transport, energy and water usage, so that prices reflect the full costs of 
resource  use  to  society  (e.g.  in  terms  of  environment  and  health)  and  do  not  create 
perverse incentives. In this respect, information and communication technologies can 
play a decisive role through, for instance, smart metering.  

In  addition,  EU-wide,  coordinated  public  support  for  R&D  and  innovation  will  be 
important to increase the availability and performance of the necessary technologies. 
As with all new technologies, there is a need to analyse up-front how to ensure the 
proper management of any potential negative impacts. 

Policies to increase resource efficiency whilst supporting the competitiveness of EU 
industries should be well balanced and address both the demand side, e.g. via green 
public  procurement  and  better  information  to  consumers,  and  the  supply  side 
together.  Moreover,  resource  efficiency  will  often  be  one  of  the  core  elements  of 
sectoral  strategies,  but  not  the  only  one.  In  each  policy  area  and  for  each  policy 
instrument,  appropriate  analysis  must  be  carried  out  using  evaluation  and  impact 
assessment processes. The respective costs and benefits of action need to be analysed 
in depth to determine the most appropriate policies on a case-by-case basis.  

5. 

BUILDING UP THE KNOWLEDGE BASE AND A CONSISTENT ANALYTICAL APPROACH 

The  analysis  of  initiatives  under  this  flagship  initiative  must  be  based,  where 
possible,  on  common  assumptions,  parameters  and  baselines,  as  well  as  on  shared 
medium-  and  long-term  visions.  This  will  help  ensure  that  the  analyses  provide  a 
consistent basis for policy decisions to achieve greenhouse gas emission reductions 
and other relevant targets in a cost-efficient manner across the relevant sectors.  

As a first step, in early 2011, the Commission will present joint modelling scenarios 
up  to  2050  on  climate,  energy  and  transport  policies.  Annex  2  sets  out  common 

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assumptions  and  parameters  for  the  reference  scenario  and  a  range  of  possible 
variations  which  are  being  examined  and  may  be  relevant  for  specific  resource 
efficiency  issues.  The  preliminary  modelling  results  suggest  that  an  80%  domestic 
reduction in greenhouse gas emissions by 2050 compared to 1990 levels is possible 
using technologies such as carbon capture and storage, renewable energies, nuclear 
if  appropriate  carbon  prices,  well-functioning 
power  and  electrification, 
infrastructures  and  markets  can  be  achieved  and  the  necessary  technologies  can  be 
widely  deployed.  Subject  to  the  achievement  of  the  needed  policy,  infrastructure, 
technology  and  market  developments,  these  preliminary  modelling  results  suggest 
that the power generation, residential and industry sectors should be able to reduce 
emissions by more than 80%, the transport sector by around 60% and the agricultural 
sector by around 40%.  

The fact that resource efficiency requires action in such a broad range of areas means 
that  modelling  is  particularly  complex.  Existing  models  focus  on  specific  policy 
areas and sectors such as energy and transport. They cannot capture fully the impact 
of resource use on ecosystems, enterprises, the economy and society as a whole, or 
the  interdependence  of  policy  measures.  The  Commission  will  undertake  further 
analytical  work  to  estimate  economy-wide  impacts,  and  to  improve  its  ability  to 
model in other areas relevant to resource efficiency, such as agriculture, industry and 
environment.  

Building  up  the  knowledge  base  will  also  require  further  work  to  evaluate  policies 
and  collect  life-cycle  data  to  further  develop  policies  and  prepare  impact 
assessments, drawing, amongst others, on the activities in various sectors under the 
Framework  Programmes  on  Research.  In  this  context,  it  will  also  be  needed  to 
develop more harmonised and transparent ways of measuring environmental impacts. 

6. 

RESOURCE EFFICIENCY AS AN INCREASING GLOBAL CONCERN 

Given  the  global  dimension  of  key  environmental  issues  such  as  climate  change, 
biodiversity, land use, deforestation, external impacts of consumption and production 
patterns,  competitiveness,  security  of  supply  and  access,  the  EU  needs  to  address 
resource efficiency issues internationally and to cooperate closely with key partners, 
including with candidate countries and those in our neighbourhood. There are good 
reasons for doing so: 

First,  there  is  growing  international  awareness  of  the  strategic  importance  of 
avoiding  risks  to  supply  of  resources  such  as  rare  earths,  fishing  grounds,  land, 
energy,  and  water.  Technological  developments,  such  as  lithium  for  electric  car 
batteries, are often tied to key raw materials which are sourced from across the globe. 

Second, concerted action at global level can help mitigate the rise in global demand. 
Resource  efficiency  should  therefore  be  a  key  element  of  our  external  relations, 
notably  with major resource  consumers such as emerging economies. For example, 
one of the most important consequences of emerging economies' growing position as 
energy consumers  is that  they will increasingly determine how energy is used on a 
global scale. The same is true for other key commodities. This has consequences for 
global supply patterns, but also for the interests of European manufacturers, investors 
and consumers in the emerging economies.  

Third, international cooperation can lead to exchanges of skills, technology and best 
practice.  Partners  are  making  major  efforts  to  increase  their  resource  efficiency. 
Examples are Japan's so-called '3Rs-concept' of 'reduce, reuse, recycle'; China’s draft 

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new  5-year  plan  and  heavy  investments  in  'clean  technologies';  and  South  Korea's 
championing of 'green growth'. The EU must further increase its work in these areas 
to  bolster  its  competitive  position  and  benefit  from  the  opportunities  this  creates. 
There  is  much  scope  for  international  cooperation  in  these  areas.  For  example,  the 
European  Commission  is  driving  forward  cooperation  with  China  on  resource 
efficiency  in  areas  such  as  grids,  power  generation  and  the  building  sector  through 
ministerial-level dialogues, concrete research programs and expert-level cooperation. 

Through its external commercial relations, the EU should continue efforts to provide 
a level playing field for industry, to improve the conditions for sustainable supply of 
raw materials, and to promote the liberalisation of trade in environmental goods and 
services  so  as  to  ensure  industry's  international  competitiveness.  Better  deployment 
of  green  technologies  would  secure  environmental  benefits  and  improve  the 
efficiency of production processes and thus support the most efficient use of scarce 
natural resources globally. 

The  EU  has  a  strong  interest  in  deepening  cooperation  on  resource  efficiency  with 
international  partners.  This  would  contribute  to  the  EU's  objective  of  sustainable 
development  and  high-impact  poverty  reduction  strategies  in  resource-reliant 
developing  countries.  It  would  also  help  to  reduce  the  fast  growing  demand  for 
global resources by encouraging the shift to cleaner modes of energy generation and 
transmission.  The  Rio+20  international  conference  on  sustainable  development  in 
2012  will  focus  on  the  'green  economy'  and  environmental  governance  and  will 
provide  a  good  opportunity  for  the  EU  to  address  resource  efficiency  with  global 
partners. 

7. 

GOVERNANCE AND MONITORING PROGRESS  

The EU needs tools to monitor and measure progress on resource efficiency. Some 
key  benchmarks  are  already  provided  in  the  Europe  2020  headline  targets  of  20% 
greenhouse gas emission reduction (30% if the conditions are right), 20% renewable 
energy sources, and 20% improvement in energy efficiency. However, indicators are 
needed  to  cover  issues  such  as  the  availability  of  natural  resources,  where  they  are 
located, how efficiently they are used, waste generation and recycling rates, impacts 
on  the  environment  and  biodiversity.  The  Commission  is  working  to  ensure  that 
appropriate  indicators  are  available  for  monitoring  and  analytical  purposes  on  the 
basis, for example, of the sustainable development indicators. 

Effective governance and monitoring of progress are essential to ensure that the EU 
achieves  greater  resource  efficiency  in  its  production  and  consumption.  Actions 
under  the  resource-efficient  Europe  flagship  have  close  links  to  other  flagship 
initiatives under the Europe 2020 strategy, in particular those on industrial policy, the 
innovation  union,  the  digital  agenda  and  the  agenda  for  new  skills  and  jobs8  and 
related Member State actions.  

The governance and monitoring will take place in the framework of the Europe 2020 
strategy and will integrate the relevant elements of the EU Sustainable Development 
Strategy in order to ensure overall coherence. They will be based on an analysis of 
EU  policies  and  those  of  individual  Member  States  in  their  National  Reform 

8 

COM(2010) 614, COM(2010) 546, COM(2010) 245, COM(2010) 682. 

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Programmes  as  part  of  the  Annual  Growth  Survey  exercise9.  This  will  be  done  as 
part of the European Semester for 2012. 

8. 

CONCLUSION 

Focusing  on  resource  efficiency  in  policy  making  is  both  a  necessity  and  an 
opportunity for the EU. This flagship initiative sets out a framework to help ensure 
that  long-term  strategies  in  areas  such  as  energy,  climate  change,  research  and 
innovation, industry, transport, agriculture, fisheries and environment policy produce 
results on resource efficiency.  

As  a  next  step,  the  Commission  will  make  concrete  proposals  for  strategies  to 
improve resource efficiency in the various policy areas as outlined in Annex 1.  

The Commission invites the Council, the European Parliament, national parliaments, 
the  Committee  of  the  Regions,  the  European  Economic  and  Social  Committee, 
candidate  countries  and  stakeholders  to  contribute  to  the  further  development  of 
these strategies and the promotion of resource efficiency.  

9 

COM(2011) 11 - Europe 2020 Annual Growth Survey: Advancing the EU's comprehensive response to 
the crisis. 

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Annex 1: Initiatives foreseen in 2011 to deliver on the resource-efficient Europe flagship10  

1st 
quarter 
2011  

1st 
quarter 
2011 

1st 
quarter 
2011 

Low-carbon  economy  2050 
roadmap 

European  Energy  Efficiency 
Plan 2020 

White  Paper  on  the  future  of 
transport 

1st 
quarter 
2011 

Communication on a 2020 EU 
biodiversity 
and 
strategy 

policy 

Communication 
in 
challenges 
markets and on raw materials 

the 
commodity 

tackling 

Revision 
Taxation Directive 

of 

the  Energy 

Roadmap 
for 
efficient Europe 

a 

resource-

1st 
quarter 
2011 

1st 
quarter 
2011 

2nd 
quarter 
2011 

2nd/3rd 
quarter 
2011 

This  will  outline  possible  pathways  to  a  low-carbon 
economy to reduce greenhouse gas emissions by 80 to 
95%  by  2050  while  improving  the  EU's  energy 
security  and  promoting  sustainable  growth  and  jobs, 
including milestones, sectoral contributions and policy 
implications for the next few years  

This will identify measures to achieve energy savings 
of  20%  across  all  sectors  and  will  be  followed  by  a 
directive  on  energy  efficiency  and  savings  in  the  3rd 
quarter 2011 

This  will  present  a  vision  for  a  low-carbon,  resource-
efficient,  secure  and  competitive  transport  system  by 
2050 that removes all obstacles to the internal market 
for 
technologies  and 
modernises transport networks 

transport,  promotes  clean 

This will set out the commitments that the EU should 
consider  taking  in  the  context  of  international  efforts 
and  in  the  light  of  pressure  on  ecosystems.  The 
strategy  will  establish  a  number  of  sub-targets 
underpinning the action 

This  will,  amongst  others, 
identify  critical  raw 
materials  and  define  integrated  measures  to  help 
ensure  sustainable  supply  of  raw  materials  to  the  EU, 
from  domestic  resources  as  well  as  from  global 
markets,  underlining  also  the  role  of  trade  policy  in 
this  area.  It  will  promote  extraction,  recycling, 
research,  innovation  and  substitution  inside  the  EU. 
Finally,  it  will  improve  coherence  between  the  EU's 
raw materials and external policies 

This will modernise the framework for energy taxation 
so that it will better support the high-priority objective 
of  sustainable  growth,  promoting  a  more  resource-
efficient, competitive and greener economy 

This  will  build  on  and  complement  other  initiatives, 
the  main  aim  being  to  increase  resource  productivity 
and decouple economic growth from resource use and 
its environmental impact 

Common Agricultural Policy 

Common Fisheries Policy 

Proposals to reform these policies will help align them 
with  current  policy  priorities,  in  particular  with  the 
Europe 2020 strategy and this flagship initiative 

Cohesion Policy 

Energy 
instrument 

TEN-T revision 

infrastructure 

4th 
quarter 

Energy Roadmap 2050 

This will explore possible paths towards a low-carbon, 
resource-efficient  EU  energy  system  and  the  policy 

10 

See the Commission's Work Programmes for 2010 and 2011 - COM(2010) 135 and COM(2010) 623. 

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11 

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2011 

challenges related to that 

2011 

Smart grids 

This will provide a framework for implementing smart 
grids  in  Member  States  to  increase  energy  efficiency, 
support  the  uptake  of  renewable  energy  and  build  an 
infrastructure for electric vehicles 

Security  of  energy  supply  and 
international cooperation 

This  will  be  a  comprehensive  analysis  of  the  external 
dimension of the EU's energy policy 

Review  of  priority  substances 
mentioned 
the  Water 
in 
Framework Directive 

This  will  review  the  priority  substances  which  pose 
risks to or via the aquatic environment at EU level  

Strategy  for  the  sustainable 
competitiveness  of 
the  EU 
construction sector 

This  will  identify  ways  to  strengthen  competitiveness 
of the sector while meeting current and future societal 
challenges until 2020 

2011 

2011 

2011 

2011 

European  strategy  and  Action 
Plan towards a sustainable bio-
based economy by 2020 

This  will  include  completing  a  European  Research 
Innovation 
implementing  a  European 
Area  and 
Partnership in the bio-economy sectors. It will promote 
the  integration  of different  sectors  and policies  across 
the  bio-economy,  improve  framework  conditions  for 
innovation  and  stimulate  reform  in  Member  State 
R&D and innovation systems  

This  will  present  a  medium-term  strategic  agenda  for 
research,  innovation  and  deployment,  outlining  how 
advanced  transport  technology  can  contribute  to  the 
objectives  of  the  White  Paper  on  the  future  of 
transport, including the implementation of a European 
Innovation Partnership on Smart Mobility 

2011 

Strategic 
Technology Plan 

Transport 

2011 

Revision  of  the  legislation  on 
monitoring  and  reporting  of 
greenhouse gas emissions 

This  will  improve  monitoring  of  the  climate  Europe 
2020  headline 
target  while  aiming  at  reducing 
unnecessary administrative burden 

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Annex 2: Key EU modelling assumptions and possible parameter variations 

(showing the lower and upper end values of the range for modulating each assumption or parameter either 
individually or jointly in order to establish sensitivities and develop policy scenarios. The relevant variations have 
to be chosen according to the focus of the specific analysis.) 

Parameter 

Reference scenario 
(Current trends and policies) 

Low-end variation 

High-end variation 

Policies 

current 

and 
policies 
Only 
measures 
including  ETS,  20% 
RES and non-ETS greenhouse gas 
reduction targets. 

action 
change 

Fragmented 
climate 
Copenhagen  Accord 
non-EU actors. 

on 
– 
for 

Coordinated  climate  change 
action  at  a  global 
level 
consistent with 2°C. 

GDP growth 

as  defined 

Medium-term 
in 
'Europe  2020  strategy'.  'Sluggish 
recovery'  -  Europe  will  suffer  a 
permanent loss in wealth but start 
growing  again  at  growth  rates 
consistent  with  long-term  GDP 
projections  of  DG  ECFIN's  2009 
Ageing Report. 

'Lost  decade'  -  Europe  will 
have  suffered  a  permanent 
loss  in  wealth  and  potential 
for future growth. 

recovery' 

'Sustainable 
- 
Europe  is  able  to  make  a 
full  return  to  earlier  growth 
path  and  raise  its  potential 
to go beyond. 

Fossil fuel import 
prices 

Oil  price  around  105  USD 
(2008)/bbl 
2030; 
125  USD  (2008)/bbl  in  2050; 
consistent development of gas and 
coal prices. 

in 

Fossil  fuel  prices  as 
in 
reference; significant risk of 
oil  shocks  (e.g.  doubling  of 
oil price) in case of resource 
constraints  coming  to  the 
fore. 

Low oil import prices of 80 
USD/bbl.  in  2030  and  70 
in  2050,  consistent 
USD 
with global climate action. 

Carbon  Capture 
and Storage 

Nuclear 
generation 

energy 

Large-scale 
demonstration 
successfully  completed  by  2020; 
commercial  uptake  starts  after 
2020  depending  on  competitive 
situation  at  prevailing  carbon 
prices. 

Replacement of old nuclear plants 
by  new  ones  on  existing  sites. 
New nuclear plants in Poland and 
Italy.  Nuclear  in  Belgium  and 
Germany  is  phased  out  in  line 
with legislation as specified in the 
scenario. 

delay 

Significant 
of 
deployment  and  subsequent 
cost reductions due to delay 
in  successful  demonstration 
public 
and/or 
acceptance 
the 
technology. 

of 
of 

lack 

Faster  deployment  due  to 
higher 
price 
carbon 
incentives. 
Widespread 
application, also for gas and 
industrial processes. 

Less nuclear capacity due to 
low  public  acceptance  of 
nuclear energy. 

Resolving  safety  and  waste 
concerns  leading  to  greater 
public  acceptance,  Member 
States 
implement  planned 
changes to nuclear policies. 

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Renewable 
energy 
(RES) 

sources 

Energy efficiency 

Transport  

Air Quality 

plus 

removal 

Technology 
learning  and  cost 
reductions  as  observed  in  recent 
years 
of 
administrative  obstacles.  Gradual 
phase-out  of  subsidies  for  mature 
technologies  and  considerable 
in  new  and  smart 
investment 
grids. 

policy 

RES  policies  remain  as  in 
reference  scenario,  no  new 
RES 
post-2020. 
Little  technology  learning 
from 
technology 
progress elsewhere. 

RES 

increase 

Decoupling 

in  energy 
Moderate 
efficiency. 
of 
economic  growth  and  energy  use 
is  taking  place,  but  far  from 
tapping  the  potential  economic 
savings available. 

Financial  restrictions  limit 
uptake  of  existing  energy 
saving  options  in  the  major 
consumption sectors.  

Continuation  of  current 
trends 
where  freight  demand  grows  in 
line  with  GDP  and  passenger 
transport 
than 
growth in GDP, mainly continued 
use  of  currently  available  car 
technologies. 

slightly 

lower 

and 

limits 

Reference  scenario  trends 
combined  with  significant 
delays 
in 
technical  progress  and  cost 
reductions  of  low  carbon 
technologies such as electric 
vehicles,  lack  of  favourable 
policy framework. 

the  view 

Progressive 
tightening  of  air 
quality  legislation  beyond  levels 
set  out  in  air  quality  Directive 
(2008/50/EC),  in  particular  (new) 
limits  for  PM10,  (new  binding) 
limits  for  PM2.5  (indicative  levels 
provided  for  2020  in  air  quality 
Directive), and (new) limit values 
for  ozone  with 
to 
enforcement  beginning  in  2020 
in 
and 
compliance 
in 
Member 
2030. 
Thereafter, 
progressive 
tightening 
quality 
legislation but still falling short of 
implementing levels of air quality 
significant  negative 
with  no 
impacts 
the 
environment  by  all  Member 
States by 2050. 

States 
slow 
of 

reaching 

health 

for 

air 

or 

Business  as  usual,  which 
implementation  of 
means 
existing  legislation  on  air 
quality 
(SO2, 
standards 
NOx,  CO,  PM,  ozone, 
heavy 
benzo(a)pyrene, 
metals) with Member States 
mostly  implementing  them 
by 
Thereafter, 
tightening  of  air  quality 
legislation  but  very  likely 
still  reaching  levels  of  air 
quality 
some 
with 
significant  negative  impacts 
the 
health 
for 
environment in 2050.  

2020. 

or 

and 
grid 

More 
climate 
stringent 
policies,  strengthening  of 
facilitation 
national  RES 
European 
policies 
and 
stronger 
framework,  e.g. 
reinforced 
support 
expansion 
(smart) 
to 
facilitation, 
acceleration 
cost 
reductions  and  technology 
learning; early grid parity of 
solar 
effective 
integration  of  solar  in  the 
market.  

leading 
of 

and 

'Sustainable 
growth' 
scenario  is  aided  by  strong 
investment 
energy 
efficiency  technologies  and 
solutions,  which  generates 
major energy savings. 

in 

Successful 
transformation 
demand 
towards 
management,  'getting  prices 
accelerated 
right' 
and 
innovation, 
technological 
widespread 
enabling 
electrification. 

beyond, 

More  ambitious  air  quality 
standards  agreed  for  2020
and 
thereby 
gradually  achieving  levels 
of  air  quality  with  no 
significant  negative  impacts 
the 
for 
health 
environment 
as 
outlined  in  the  WHO  air 
quality 
and 
successful 
full 
implementation  by  Member 
States by 2050 . 

guidelines) 

or 
(e.g. 

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Full  implementation  of  Natura 
2000  in  the  EU,  plus  increase  of 
the  marine  areas  in  the  network 
with  connectivity  between 
the 
sites  and  protection  factions  for 
biodiversity  under  the  Common 
Agricultural Policy. 

Weak implementation of the 
network 
2000 
Natura 
requirements in the EU with 
weak  connectivity  between 
Natura 2000 sites. 

Biodiversity 

Same  as  for  reference,  but 
with  full  protection  of  all 
biodiversity 
the  EU, 
in 
restoration  of  biodiversity 
and ecosystem services as in 
EU 
Biodiversity 
the 
and 
target, 
Strategy 
of 
implementation 
the 
Green 
Infrastructure 
concept. 

Waste 
management 

Freshwater  

Full  implementation  of  existing 
EU  waste  legislation,  notably  in 
terms of achievement of recycling 
targets and waste reduction. 

Failure  to  achieve  the  EU 
recycling  targets  by  a  few 
Member  States,  low  waste 
reduction. 

the 

reuse 

waste 
Meeting 
prevention, 
and 
recycling  performances  of 
the more advanced Member 
States,  going  beyond  the 
minimum  EU  targets, waste 
reduction  of  15%.  Zero 
landfill 
all  Member 
States. 

in 

An  increasing  share  of  the  EU  is 
water-stressed  and  droughts  are 
more  frequent  and  widespread. 
Larger  energy  footprint  of  water 
use  as  a  larger  share  will  have  to 
come 
from  alternative  water 
supplies such as desalination. 

Water 
requirements  are 
and  good  ecological  status 
obtained in most of the basins.  

Framework  Directive 
implemented 
is 

A  large  share  of  the  EU  is 
water  stressed  and  droughts 
frequent  and 
are  more 
widespread  (aggravated  by 
climate  change).  Floods  are 
also  more  frequent  and/or 
energy 
intensive.  High 
footprint of water use.  

Water Framework Directive 
requirements are only partly 
good 
implemented 
ecological 
is  not 
obtained in all the basins. 

status 

and 

in  place 

allocation 

Water  demand  management 
is 
to  ensure  a 
of 
proper 
available  resources  to  water 
users  and  the  environment. 
The  energy 
footprint  of 
water consumption is low as 
water is being managed in a 
sustainable way. 

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Agricultural 
production 
increases  substantially,  but 
fast  yield  growth  following 
e.g.  seed/root  improvement 
technologies, 
spot-
irrigation,  etc.  So  increased 
food/energy  demand  exerts 
less  pressure  on  additional 
land, 
to  reduced 
deforestation  and  new  areas 
or 
(mainly 
marginal  agricultural  land) 
being 
under 
brought 
cultivation. 

grasslands 

leading 

Agricultural  production  increases 
substantially,  but  moderate  yield 
result  of  modern 
growth  as 
gradually 
being 
technologies 
implemented 
developing 
in 
nations.  The  exporting  country 
base  is  enlarged,  but  food/energy 
demand  may  still  exert  pressure 
on  additional  land,  leading  to 
some deforestation and new areas 
(mainly  grasslands  or  marginal 
agricultural  land)  being  brought 
under  cultivation  with  resulting 
increased  releases  of  greenhouse 
loss  of 
gas 
biodiversity. 

emissions 

and 

Agriculture 
land use 

and 

. 

in 

production 
Agricultural 
in 
increases  substantially 
order  to  feed  a  larger  and 
wealthier global population. 
Stagnating  yields  due 
to 
slow  technological  progress 
and  extensive  agriculture, 
low  grain 
resulting 
production 
major 
in 
exporting  countries  relative 
to  the  market  demand  and 
production concentrated in a 
relatively  small  number  of 
exporting countries. Climate 
effects  maybe 
change 
reduce periodically yields in 
wide  areas,  causing  sharp 
food  prices 
increases 
which 
food 
In 
security 
response  to  strong  demand 
pressures 
food, 
deforestation  continues  as 
substantial  new  land  areas 
are 
under 
cultivation. 
Intensification 
of  agricultural  production 
and deforestation puts more 
pressure  to  biodiversity  and 
result  in  more  greenhouse 
gas emissions releases. 

aggravate 

concerns. 

brought 

for 

in 

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