COMMISSION STAFF WORKING DOCUMENT Progress Report on the Roadmap to a Resource Efficient Europe Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Towards a circular economy: a zero waste programme for Europe
Date: 2014-07-02
Institutions: European Commission
Subjects: biodiversity, competitiveness, economic growth, economic recovery, economic reform, environmental tax, management of resources, natural resources, pollution control measures, sustainable development













EUR-Lex - 52014SC0206R(01) - EN











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52014SC0206R(01)

COMMISSION STAFF WORKING DOCUMENT Progress Report on the Roadmap to a Resource Efficient Europe Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Towards a circular economy: a zero waste programme for Europe /* SWD/2014/0206 final/2 */









Progress Report on the Roadmap to a Resource
Efficient Europe
1.      Resource
efficiency in the context of the Europe 2020 Strategy
Resource
efficiency is about setting the EU on a path to achieve a resilient and
competitive economy, high quality of life and a healthy environment. It is an
essential component of the Europe 2020 Strategy for sustainable, smart and
inclusive growth[1].
Its Flagship Initiative "A resource-efficient Europe"[2]
established a coherent policy framework, which builds on long-term strategies
addressing climate, energy, transport, and broader resource challenges. It
encompasses the reforms in agricultural, fisheries and regional development
policies, while including initiatives in the field of biodiversity, water and
air policy, as well as raw materials, the bioeconomy, construction, taxation,
research and innovation.
With
the Communication "Roadmap to a Resource Efficient Europe"
adopted in 2011[3] (hereafter
"the Roadmap") the Commission set out a comprehensive strategy based
on a broad definition of resources – from metals and minerals to water, air,
ecosystems, biodiversity, land and soil. It took forward the overarching aim of
the Resource Efficiency Flagship to decouple economic growth from resource use
and its environmental impacts, and proposed a long-term vision, 2020 milestones
and a number of short-term actions to start the transition, many of which have
already been delivered. A process for defining appropriate targets and solid,
effective and science-based indicators was envisaged with a view to agreeing on
a lead indicator, a dashboard and thematic indicators, and potential targets on
resource efficiency. 
By
highlighting the need for restructuring, innovation, and ultimately
transformation of our economy, the resource efficiency agenda has gained
political visibility and support. It offers sustainable solutions to some of
the challenges underpinning the recent economic crisis. The European Council
in March 2012 in its conclusions on economic governance[4] called
for rapid progress on the implementation of the Roadmap. Issues such as
shifting towards environmental taxation and improving energy efficiency,
reducing greenhouse gas emissions, and improving management of water and waste,
have thus been integrated in the governance and monitoring mechanism of the
Europe 2020 Strategy – the European Semester[5].
The
main ideas of the Roadmap were taken up in the seventh Environment Action
Programme "Living well, within the limits of our planet" (7th
EAP) which was agreed by the Council and the European Parliament and
entered into force on 17 January 2014[6].
Internationally, the
EU has contributed to progress towards the green economy and a more efficient
use of natural resources in the context of the 2012 UN Conference on
Sustainable Development ("Rio+20") and its follow-up[7].
Resource efficiency related issues have been introduced into the High Level
Political Dialogues with strategic partner countries, as well as into
discussions with enlargement countries, and have entered the agendas of OECD,
IMF and the World Bank. 
2.      Reactions
to the Roadmap to a Resource Efficient Europe
The
agenda proposed by the Commission with the Resource Efficiency Roadmap was
welcomed by the EU Institutions and a wide range of stakeholders.
In
December 2011 the Council (Environment) adopted conclusions[8]
welcoming the Roadmap and emphasising that transforming the economy along a
sustainable and responsible resource efficient path should also contribute to
the recovery from the economic crisis, and bring increased competitiveness and
new sources of growth and jobs, through cost savings from improved efficiency.
The Council highlighted that jobs can result from no- or low-cost actions, the
deployment of innovative solutions in markets and society and better valuation
and management of resources, in the short- and long-term. It encouraged the
inclusion of further actions aimed at resource efficiency in the European
Semester process and the Member States to report their progress in their
National Reform Programmes. 
In
February 2012 the Council (ECOFIN) adopted conclusions on the economic
aspects of the Roadmap[9],
stressing that environmental taxes, revenues from other market-based
instruments and the removal of environmentally harmful subsidies may contribute
to a wider fiscal consolidation process. It called for the rationalisation and
the phasing out of such subsidies, including those on fossil fuels.
The
European Parliament adopted a resolution[10],
which outlined priority actions to address: the three key areas of food,
housing, and mobility; a functioning
European market in recycling and reuse; boosting research and technological
innovation; agreeing on indicators and targets; extension of ecodesign; and
integration of resource efficiency in other areas. The resolution included a number
of ideas on future growth, transforming the economy, natural capital and
ecosystem services, governance and monitoring, and the international dimension.

The
European Economic and Social Committee issued an opinion on the Roadmap[11] and
an own-initiative opinion accompanied by a public hearing on the transition to
an inclusive green economy[12].
The Committee of the Regions also adopted an opinion[13],
carried out a survey, and in September 2013 organised a stock-taking conference
on resource efficiency. 
The
EU Member States have been stepping up their efforts in the resource
efficiency field and shifted to more integrated approaches. Dedicated
initiatives have been developed by some countries, such as Germany, Austria,
Finland, and Denmark, while others have mainstreamed resource efficiency in
broad economy-wide strategies or action plans, or have translated the concept
into specific actions. The Members States with a significant commitment to
resource efficiency, including energy- and material efficiency and development
of renewable energy sources, are currently also performing well economically. A
dedicated Member State Group on Resource Efficiency has been set up by the
Commission to discuss policy and exchange best practice[14].
Linking
the resource challenge to competitiveness has resonated with a wide range of stakeholders,
in particular from the business side, facilitating their engagement in
achieving positive outcomes for the environment. This became visible, inter
alia, in the European Resource Efficiency Platform (see 5.1.) and at a Finance
Roundtable organised by the Commission in 2013, which both gathered high
level stakeholder representatives and led to policy recommendations for the EU,
Member States and business. 
European
citizens are convinced of a strong positive link between growth, jobs and
resource efficiency. A recent Eurobarometer survey[15]
revealed that a substantial majority of people think that more efficient
resource use would have a positive effect on the quality of life in their
country (86%), on economic growth (80%), as well as on employment opportunities
(78%). 
3.      Making
and measuring progress towards resource efficiency
3.1.                       
Current
trends and expected impacts
The
full impacts of the actions launched under the Roadmap are yet to unfold. They
will be assessed against already existing positive trends, which remain to be
further encouraged. Resource productivity in the EU measured as the volume of
Gross Domestic Product over Raw Material Consumption (GDP/RMC), increased by
around 20% in the period 2000-2011, slightly faster than the rate of GDP
growth. This indicates that the EU is making better use of the resources its
economy needs and thus achieving relative decoupling of economic growth from
resource use. Employment in the sector of environmental goods and services in
the EU increased from 3 million in 2002 to 4.2 million in 2011, growing by 20%
in the period 2007 – 2011, throughout the recession years[16]. High
European standards have helped create a competitive advantage for European
companies in the eco-industries – a global market
currently valued at a trillion euros and forecast to double over the next 10
years[17]. The EU's bioeconomy sectors
are worth € 2 trillion in annual turnover and account for more than 22 million
jobs and approximately 9% of the workforce[18].
Moreover, it has been estimated that reducing the
total material requirement of the EU economy by 17% to 24%, could boost GDP by
up to 3.3% and create 1.4 to 2.8 million jobs[19].
By using resources more efficiently, business could benefit from savings in the
range €245-604 billion per annum, representing between 3% and 8% of their
annual turnover, and entailing a reduction of 2-4% of total annual greenhouse
gas emissions in the EU[20].

A
study for the UK Government shows that UK businesses could save £23 billion a
year by using resources more efficiently[21].
As regards Germany, estimations were made that a 20% reduction in resource and
energy use in the country could lead to an increase in resource productivity of
2.9% per year. The economic benefits would include the creation of more than
one million jobs, an improved growth rate and an increase of GDP by 12%, with a
payback period of one year in the case of materials and six years for energy[22]. The
variation in levels of resource efficiency between Member States suggests there
is considerable scope for improving resource productivity across the EU. 
3.2.                       
Resource
efficiency indicators and targets 
High
level indicators and targets are essential to focus effort, and to give a clear
direction and measure progress towards a more resource efficient economy. The
Roadmap emphasised the need for further work to improve the set of available
indicators and to formulate a resource efficiency target, further requested by
the European Parliament and various stakeholders.
Developing
methodologies for measuring and benchmarking the efficiency of land,
carbon, water and material use by 2015 and assessing the appropriateness of
the inclusion of a lead indicator and target in the European Semester
are commitments under the 7th EAP. 
Based
on the results of public consultation on resource efficiency targets and
indicators and a further study[23],
the Commission Staff Working Document "Analysis of an EU target for
Resource Productivity"[24]
sets out the rationale for a target to increase resource productivity as
measured by GDP relative to Raw Material Consumption. The forthcoming
assessment of the Europe 2020 Strategy provides an opportunity to take forward
this debate. 
The
work on the most suitable indicators for target setting as regards water and
land continues. In the meantime, a Resource Efficiency Scoreboard
has been published by Eurostat since 2013[25]
to monitor progress in the implementation of the Roadmap, communicate the link
between resources and economy, and engage stakeholders. However, data for many
indicators is produced with a substantial time lag. As soon as sufficient time
series become available, further analysis of the effects of implementing the
Roadmap and the distance to its milestones will be possible. 
3.3.                       
GDP
and beyond
The
European Commission has continued its efforts under its roadmap for "GDP
and Beyond: measuring
progress in a changing world"[26] with
a view to complementing GDP with indicators of societal and environmental
progress. This work is placed within the context of work carried out by the
World Bank and the OECD to develop broader measurement of societal progress and
environmental well-being beyond economic and financial indicators. A number of
results of interest to resource efficiency have been achieved: 
Top-level
indicators on environmental protection are being developed.
Pilot versions of two complementary comprehensive environmental indices – a
composite index of environmental pressures and an index of the environmental
impacts of European consumption – are currently being tested. 
The
time to publish key environmental indicators on emissions has been shortened in
order to be more in line with the publication of GDP estimates.
Since 2012, Eurostat has produced ‘early estimates’ — within four months — for
CO2 emissions from energy use. Early estimates of Material flow accounts should
be available within 12 months.
Measurement
towards sustainability has been improved. While the
feasibility testing of an EU Sustainable Development Scoreboard has been
inconclusive due to a lack of data, the work on resource efficiency indicators
and targets (see section 3.2) has contributed to the progress on the GDP and
beyond agenda. The Life Cycle Data Network[27] of
the European Commission's European Platform on Life Cycle Assessment launched
in 2014 provides data on resource consumption and emissions associated with
supply chains and waste management activities provided by various stakeholders
(governments, academia, research projects, industry, and others). Such
information allows more in-depth analyses of opportunities to address
resource-related concerns and trade-offs.
National
accounts have been extended to environmental and social issues. A
Regulation on three sets of environmental economic accounts (air emissions,
environment-related taxes and material flow accounts) was adopted in 2011[28] and
will deliver first statistics for the EU in 2014. Three more sets (energy
accounts, environmental protection expenditures and environmental goods and
service sector) have been adopted in 2014.
Finally
research is on-going to put a monetary value on the loss of natural
resources and on external costs relating to human activities. 
4.      Key
initiatives
The
Resource Efficiency Roadmap has provided a framework for coordinated action,
involving a broad range of stakeholders, to initiate transformation across the
economy while safeguarding natural capital. As a result, resource efficiency
thinking has been increasingly integrated in various policies at EU, national,
and international level.
4.1.                       
Transforming
the economy
Sustainable
consumption and production
With
the 2013 Communication "Building the Single Market for Green
Products" the Commission proposed EU-wide methods based on Life Cycle
Assessment to measure the environmental performance of products and
organisations, encouraging Member States and the private sector to take them up[29]. A
three year Environmental Footprint pilot phase was set up in cooperation
with volunteering industry: product and sector rules are being developed
through a multi-stakeholder process. The most relevant environmental impacts
and the most relevant life cycle stages (e.g. extraction, production,
logistics, use, end of life) will be defined for a given product or sector. The
evaluation of the results of the pilot phase in 2016 will set out how this work
can best contribute to providing purchasers with better information on sustainable
choices and look into potential further policy applications.
On
product design, since 2011 material efficiency requirements have been
integrated in five Ecodesign implementing regulations, in addition to energy
efficiency (durability requirements for vacuum cleaners; information relevant
for disassembly, recycling and disposal at end-of-life for fans, water pumps,
space heaters, water heaters and vacuum cleaners). In addition, the ecodesign
voluntary agreement on imaging equipment contains specific design requirements
to facilitate recycling. The Methodology for the Ecodesign of Energy-related
Products (MEErP)[30]
has been updated to include certain material efficiency parameters
(recyclability benefit rates, recycled content, lifetime, and a critical raw
material index), which enable further analyses of material efficiency aspects
in products. The introduction of criteria related to durability[31],
modularity, reusability and recyclability are addressing the need to keep
materials circulating in the economy and has a potential for transforming
product design due to the mandatory nature of the tool. 
The
Commission Communication "A Stronger European Industry for Growth
and Economic Recovery"[32]
identified six priority areas, where investment in new technologies and innovation
has significant potential: advanced manufacturing technologies for clean
production; key enabling technologies; bio-based products; sustainable
industrial and construction policy and raw materials; clean vehicles and
vessels; and smart grids. The 2014 initiative "For a European Industrial
Renaissance"[33]
confirmed resource efficiency as essential to industrial modernisation. The
European Council in March 2014[34]
draw special attention to the role of cleantech as a cross-cutting element for
enhancing the competitiveness of the European industry, and invited the
Commission to report on how to promote it through concrete actions in all
relevant EU policies. 
In
the context of developing a Green Action Plan for SMEs efforts have been
focused on identifying the most effective support measures for SMEs in all
sectors, to become more resource efficient and exploit opportunities on green
markets within the EU and internationally. Providing support to actors that are
best placed to help SMEs in the process is also explored.
Policy
development in the key sectors related to the transformation of the
economy - reducing the impact of housing, nutrition and mobility - is also
progressing with the implementation of actions under the White Paper on
Transport "Roadmap to a Single European Transport Area – Towards a
competitive and resource-efficient transport system"[35], and
the launch of initiatives on sustainable food and sustainable
buildings in 2014. Moreover, the Bioeconomy Strategy and its Action
Plan[36] aim
to pave the way to a more innovative, resource efficient and competitive
society that reconciles food security with the sustainable use of renewable
resources for industrial purposes, while ensuring environmental protection.
They inform research and innovation agendas in bioeconomy sectors and
contribute to a more coherent policy development, better interrelations between
national, EU and global bioeconomy policies and a more engaged public dialogue.

In
the field of Green Public Procurement (GPP) the Commission, together
with the Member States and stakeholders, has established priorities regarding
product groups for which GPP criteria should be developed or revised in the
future to best meet the needs of procurers. GPP criteria have been adopted for
several new product groups, e.g. in the field of waste water treatment plants.
In 2013, a new EU funded projects (GPP 2020) was launched, supporting joint
procurement and networking of public procurement officers. Moreover, a process
has been started to develop recommendations for Member States and contracting
authorities on how to best measure the uptake of GPP so that the effectiveness
of the policy can be better monitored.
Turning
waste into a resource
In
order to turn waste into a resource, the 7th EAP calls
for the removal of barriers faced by recycling activities in the EU internal
market, and reviewing existing prevention, re-use, recycling, recovery and
landfill diversion targets. The objective is to move towards a lifecycle-driven
'circular' economy, with cascading use of resources and residual waste close to
zero. 
These
objectives have guided the 2014 package of measures to move to a circular
economy, underpinned by extensive analysis in the context of the review of
the targets in the EU Waste Framework Directive, the Landfill Directive and
the Packaging and Packaging Waste Directive. The waste policy review draws on
the results of a fitness check on five EU waste stream directives as well as
the responses to the Commission's Green Paper on plastic waste. 
To
assist Member States in improving their waste management performance, in
2012 the Commission developed a Waste Management Scoreboard[37],
and roadmaps with specific recommendations for the ten Member States
with the weakest performance, extensively discussed with the countries
concerned. This initiative will be continued for as long as necessary to bring
the desired improvements.
A
recast directive on waste electrical and electronic equipment (WEEE)[38] was
adopted in June 2012 and was to be transposed by Member States by 14 February
2014. It includes ambitious new collection targets of 85% of WEEE generated,
and provides Member States with tools to fight illegal export of waste more
effectively. The work on end of waste criteria has resulted in a Council
Regulation on iron, steel and aluminium scrap[39]
and Commission Regulations on glass cullet[40]
and copper scrap[41].
Moreover, in 2013 the Commission adopted a legislative proposal to tackle
illegal waste shipments by strengthening inspections and enforcement under the Waste
Shipment Regulation[42].
The Commission is analysing options for a global certification scheme of waste
facilities, to ensure environmentally sound management of exported waste.
Supporting
research and innovation
Resource
efficiency is addressed as a societal challenge through the EU Framework
Programme for Research and Innovation for 2014-2020, Horizon 2020.
Innovative actions under its pillars, notably Societal Challenges, Industrial
Leadership and Excellent Science, will promote a more circular economy, triggering
broad stakeholder cooperation. Key initiatives to leverage business action are
the Public Private Partnership "Sustainable Process Industry through
Resource and Energy Efficiency" (SPIRE) and the Joint Technology
Initiative "Bio-Based Industries". The European Institute of
Innovation and Technology is contributing towards a more circular and resource
efficient economy through its Knowledge and Innovation Communities (KICs). The
KICs bring together business, research and education players in highly integrated
partnerships aimed at boosting the innovation capacity in the areas of climate
change, sustainable energy and ICT. The EIT will designate five additional
KICs, dealing with, inter alia, raw materials, food supply chain, and added
value manufacturing. 
Waste
and water feature among the 12 focus areas addressed in the 2014 – 2015 Work
Programme of Horizon 2020. In the Waste Focus Area an innovation
action is included for ‘Moving towards a circular economy through industrial
symbiosis’. The
majority of the other focus areas also cover environmental elements – for
example 'Smart Cities' in relation to urban design and 'Blue Growth in relation
to marine environment. 
The
Commission has also launched European Innovation Partnerships (EIPs) for
water, raw materials, and agricultural sustainability and productivity, in
order to bring together actors and activate resources to tackle societal
challenges, to speed up breakthrough innovations and their rolling out. A
methodology for assessing the impact of regulation on innovation was developed
and applied in the context of the Water and Raw Materials EIPs[43].
In 2011
the Commission adopted an Eco-innovation Action Plan to expand the EU's
focus from green technologies to non-technological innovative products, services
and processes. Initiatives in 2013-14 under this plan include INNEON,
a network of eco-innovation financiers to strengthen the "investor
readiness" of eco-innovative SMEs and leverage further funding for
eco-innovative entrepreneurs, and INNOCAT, a network of public and
private procurers to address the fragmentation of the demand for eco-innovative
solutions in the catering sector. The initiative on market replication for
eco-innovation concluded in 2013 led to net employment creation of around 8
full-time jobs per project on average and an average leverage factor of 20 (1€
of public investment leading to 20€ gross revenue leverage). The total global
environmental and economic benefit from this initiative is estimated at more
than 1.6 billion euro for 5 years[44].
The Eco-Innovation Scoreboard[45]
provides Member States' profiles and identifies their eco-innovation potential.
Transforming the
economy towards a more resource efficient and circular model has been supported
also by action on the side of progressive business:
SPIRE is a
Public-Private Partnership supported by Horizon 2020 with the objective to
develop enabling technologies and solutions along the value chain, required to
reach long term sustainability for Europe in terms of global competitiveness, ecology
and employment. It represents more than 90 industrial and research process
industry stakeholders from over a dozen countries spread throughout Europe,
joining the efforts of eight industry sectors: chemical, steel, engineering
minerals, non-ferrous metals, cement, ceramics and water. 
The Bio-based
Industries Initiative is a Public Private Partnership supported by Horizon
2020 bringing together more than 60 European large and small companies,
clusters and organisations across technology, industry, agriculture and
forestry. It aims at fostering innovation to deliver bio-based products, which
are superior or at least comparable to the corresponding non bio-based products
in terms of price, performance, availability and environmental benefits. It
focuses on three main streams of activities: feedstock, biorefineries, and
markets, products and policies.
Climate-KIC is a
highly integrated public private partnership supported by the European
Institute of Innovation Technology consisting of more than 220 innovation
players from all over Europe. It brings together more than 110 large and small
companies with excellent academic and research institutions and the public
sector. The KIC integrates education, entrepreneurship and innovation resulting
in the transformation of knowledge and ideas into new viable products or
services in relevant climate change areas, such as resource efficiency and
waste, bioeconomy, land use and water engineering, resource and energy
efficiency in the built environment, and sustainable city systems.
ARMOR, a leading
company in ink and printing techniques, developed an "Alternative print
programme" to address eco-design, materials recycling, collection and
take-back and responsible production. After discussion with its supply
chain, the company adopted a "Convention de filière" to
eliminate barriers to a more circular model (design, split incentives, lack of
intra-chain and cross-sector dialogue, financial risks). 
Umicore has been
demonstrating that efficient recycling is a profitable and sustainable
business model offering investment, innovation and employment opportunities.
Close to 50% of Umicore’s metal supply requirements comes from in-house
recycling. This also reduces CO2 emissions substantially.
Suez
Environnement has established 278 sorting centres, 99 composting platforms, and
85 recovery facilities for electronic waste, producing 12 million tons
of secondary raw materials, while avoiding 2.8 M tons of CO2 emissions.
Renault’s plant
in Choisy-le-Roi, near Paris, remanufactures automotive engines,
transmissions, injection pumps, and other components for resale. The plant’s
remanufacturing operations use 80 percent less energy and almost 90 percent
less water than comparable new production does, with high operating margins.
Renault redesigns certain components to make them easier to disassemble and use
again. The company also targets components for closed-loop reuse, essentially
converting materials and components from worn-out vehicles into inputs for new
ones. Renault also works with suppliers to identify “circular benefits” that
distribute value across its supply chain and shifting from a sales to a
performance-based model[46]. 
A European
Network on Industrial Symbiosis (EUR-ISA) was established in 2013, bringing
together organisations responsible for up to 10 established industrial
symbiosis programmes (collectively engaged with more than 20,000 companies
across Europe).
The Ellen
MacArthur Foundation has created the "Circular Economy 100"
programme to support business in unlocking commercial opportunities and to
enable them to benefit from subsequent first mover advantages. In January 2012,
the Foundation produced a report "Towards the Circular Economy: Economic
and business rationale for an accelerated transition" presenting the economic
and business case for the transition to a restorative, circular model, and
detailing the potential for significant benefits across the EU.
4.2.                       
Natural
capital and ecosystem services
The
Communication 'Our life insurance, our natural capital: an EU biodiversity
strategy to 2020' was adopted by the Commission in May 2011. This strategy
sets six main targets and 20 actions to help Europe reach its goal to halt the
loss of biodiversity and ecosystem services in the EU by 2020. The six targets
consist of: the full implementation of EU nature legislation to protect
biodiversity; better protection for ecosystems, and more use of green
infrastructure; more sustainable agriculture and forestry; better management of
fish stocks; tighter controls on invasive alien species; and a bigger EU
contribution to averting global biodiversity loss. The 7th EAP
expressed the commitment of the EU, national authorities and stakeholders to
speed up the delivery of the 2020 Biodiversity Strategy objectives.
In
line with commitments under the Strategy, a number of measures were implemented
to strengthen the implementation of the EU nature legislation. The
Commission proposed a Regulation on the prevention and management of the
introduction and spread of invasive alien species in 2013. The proposal
is designed to respond to increasing problems caused by these species, which
include ecological and economic damage worth at least EUR 12 billion every year
in Europe.
A
Regulation establishing rules governing access and benefit sharing
for genetic resources and traditional knowledge associated with them was
adopted, enabling the Union to ratify the Nagoya Protocol and contribute
to its entry into force. This will help ensure that biodiversity is sustainably
used, create transparent rules for EU researchers and companies utilising
genetic resources, and contribute to the sharing of benefits with the providers
of those resources.
The
Commission adopted a Communication on "Green Infrastructure (GI) —
Enhancing Europe’s Natural Capital" in 2013. It works with Member
States and regions on enhancing green infrastructure and its financing, in
particular as regards flood management, natural water retention, cohesion,
agricultural, and climate adaptation polices. The Commission is also working
together with the European Investment Bank to attract private financing through
the establishment of a Natural Capital Financing Facility, which is to
be launched as a pilot in 2014. Work on Mapping and Assessing Ecosystems and
Services at EU and Member State's level is progressing and a first delivery
is due by December 2014.
The
Commission Communication "A Blueprint to Safeguard Europe's Water
Resources" was adopted in November 2012. The Blueprint highlights that
preserving water is not only about environmental protection, health and
well-being, but it is also about economic growth and prosperity. It is a way of
ensuring that the EU fully develops its growth potential and that all economic
sectors have the water they need to operate. The Blueprint is supported by the European
Innovation Partnership on Water launched in May 2012. The Commission
proposal for amending Directives 2000/60/EC and 2008/105/EC as regards priority
substances in the field of water policy was adopted in 2013. 
In
relation to the marine environment, a far-reaching reform of the Common
Fisheries Policy was agreed in 2013, which aims to progressively eliminate
the wasteful practice of discarding unwanted species, and also puts in place a
framework for achieving stocks capable of producing ‘Maximum Sustainable
Yield’- by 2015 where possible, and by 2020 at the latest. In its Report on the
first phase of implementation of the Marine Strategy Framework Directive[47], the
Commission has identified a series of recommendations to be undertaken in order
to achieve Good Environmental Status for marine waters by 2020. The new Maritime
Spatial Planning Directive obliges Member States to take into account
land-sea interactions when considering the sustainable use of marine resources.
It will enable Member States to further contribute to resource efficiency by
setting the framework within which a balanced approach can be taken, leading
ultimately to the sustainable development of marine areas and promoting the
sustainable growth of maritime economies. 
The
Clean Air Policy Package adopted in December 2013 is a key contribution
to the resource efficiency agenda. The package includes a Communication
"A Clean Air Programme for Europe" with measures to ensure that
existing targets are met in the short term, and new air quality objectives for
the period up to 2030. It also contains measures to help cut air pollution,
with a focus on improving air quality in cities, supporting research and
innovation, and promoting international cooperation. Proposals are made
for a revised National Emission Ceilings Directive with stricter national
emission ceilings for the six main pollutants, and a new Directive to reduce
pollution from medium-sized combustion installations, such as energy plants for
street blocks or large buildings, and small industry installations. 
Guidelines
on best practice to limit, mitigate or compensate soil sealing have been
developed by the Commission[48],
and work on the preparation of a Communication on 'land as a resource'
is ongoing. A Consultative Communication on the Sustainable Use of Phosphorus
was published in 2013[49]
and a public debate on this issue has been launched.
4.3.                       
Integration
of resource efficiency into other policies
Beyond
the specific LIFE programme focused on environmental priorities, 20% of the overall
EU spending under the new Multiannual Financial Framework should be
related to climate mainstreaming. This is to be reflected in the annual budgets
of all relevant policy areas. 60% of Horizon 2020 should be linked to
sustainable development. The Common Agriculture Policy envisages
devoting 30% of direct payments to permanent pastures, crop diversification and
ecological focus areas. Moreover, Member States should spend a minimum of 30%
of the total contribution from the European Agricultural Fund for Rural
Development to each rural development programme on climate change mitigation
and adaptation,n as well as environment issues.The 2014-2020 Cohesion Policy
provides significant opportunities for investments in resource efficiency and
the circular economy. Within the thematic objective on 'preserving and
protecting the environment and promoting resource efficiency' Member States can
support programmes and projects for improved waste management. Furthermore, the
thematic objective on research and innovation includes eco-innovation as an
investment priority while the thematic objective on the competitiveness of
SME's will help SME's to invest in resource efficiency and circular economy
related projects. Sustainable urban development will be specifically also
supported. Eventually the Common Provisions Regulation 1303/2013/EU[50] also
includes a specific article on promoting sustainable development in all
co-financed actions in the 2014-20 period, encouraging Member States to direct
investments toward the most-resource efficient and sustainable options.
Resource
efficiency concerns have also been integrated into the state aid
modernisation process. The objective of avoiding environmental harm in general
has been integrated into the new regional aid guidelines[51]. The
new guidelines on environmental and energy state aid include for the first time
a specific chapter allowing aid for promoting resource efficiency. In addition,
they consider negative impacts of environmental harmful subsidies, including
for fossil fuels, while taking into account the need to address trade-offs
between different areas and policies as recognised by the flagship initiative
on Resource Efficient Europe. Aid for the extraction of fossil fuels is not
included , and concerning aid to generation adequacy Member States should
primarily consider alternative ways, which do not have a negative impact on the
objective of phasing out environmentally or economically harmful subsidies,
such as facilitating demand side management and increasing interconnection
capacity. 
Resource
efficiency issues, such as environmental taxation, GHG emissions reductions,
energy efficiency, waste and water management, have been addressed since 2011
in the European Semester of economic governance - in the Annual Growth
Surveys, a number of Country Specific Recommendations, and the Staff Working
Documents analysing the progress of Member States towards the priorities set in
this process. Targeted studies have been launched by the Commission to
support integrating resource efficiency better in the European Semester,
estimating potential economic benefits from action on resource efficiency and
revealing the cost of inaction, while analysing county-specific challenges. A
recent study on the potential for greener taxes[52]
suggests that moving taxes away from labour towards pollution would bring in
revenues of EUR 35 billion in real terms in 2016, rising to EUR 101 billion in
2025. Steps to remove environmentally harmful subsidies can further increase
these figures. The potential revenues range from 1% to 2.5% of GDP per annum in
2025, depending on the Member State concerned. Another study shows that the
approximate total cost of damage from flooding in the EU over the
2002-2013 period was at least EUR 150 billion[53].
Investing in measures to reduce flooding is highly effective, on average
costing 6 to 8 times less than the damage caused by flooding. Green
infrastructure - restoring natural features to help manage and store flood
water - offers better outcomes for biodiversity and could help reduce
construction costs. Benefits and best practices in the Member States to support
resource efficiency in SMEs are also analysed.
Concerning
the shift of taxation from labour to energy, pollution and resource use,
some Member States have achieved, through various steps of environmental tax
reforms, a share of environmental tax revenues in total taxes of more than 10%,
while preserving fiscal revenues and improving competitiveness and energy
efficiency. At the level of the EU, environmental taxes generated 6.2% of the
total tax revenue in 2011. Energy taxes accounted for around three quarters of
this revenue. In many Member States, there is scope for better accommodating
environmental concerns in the taxation system. This relates both to the level and
trend of taxation (in many Member States, revenues from environmental taxes are
falling, due to the lack of indexation of tax rates) and to the structure and
design of environmental taxation. It is also linked to tax expenditure with a
negative environmental impact, e.g. reduced tax rates on fossil fuel and the
subsidies embedded in company car tax regimes.
Shifting to
environmental taxation and eliminating environmentally harmful subsidies 
Changes to
various environmental taxes are underway or planned: Estonia (increases
to excise duties and charges); Finland (increases in taxes of vehicles and
traffic fuels, on peat, a new windfall-tax for hydro and nuclear power, tax on
waste); the Netherlands (removal of reduced excise tax rates for certain uses of
diesel, tax-free compensation of commuter expenses and the exemption from the
coal tax on coal used in power plants; increase in existing energy tax rates,
continuation of tap water tax and tax on heavy motor vehicles, reduced rate of
energy tax for small-scale renewable electricity production, redesign of motor
vehicle tax to reflect environmental performance of vehicles); France (new
carbon tax, review of bonus-malus schemes for car registration tax); Denmark
(taxes increased or announced on lorry road pricing, motor vehicles, fuel
consumption, tap water, some consumer products; and nitrogen oxides); Italy
(need for green fiscal reform and possible introduction of carbon tax on energy
products discussed). 
The positive
impacts of environmental taxes have to some extent been offset by persisting
direct and indirect environmentally harmful subsidies (EHS) in all EU
Member States and occur across various sectors. Some steps in their removal are
being taken: for instance, reports identifying EHS in key sectors have been
published in Germany, the Netherlands, Sweden, Finland (by environmental
organisations); Cyprus identified some EHS in its government budget, Slovenia
created a working group to study existing EHS. The Commission together with the
OECD has developed a database of subsidies to fossil fuels. However, achieving
the objective to phase out these subsidies by 2020 is not likely to be achieved
without further substantial effort. 
4.4.                       
Awareness
raising and communication
The
transition towards a resource efficient economy cannot be achieved without a
shift towards sustainable consumption and behavioural change. Raising awareness
of issues related to unsustainable use of resources, notably, via visualising
the link between individual choices and pressure on resources are important to
ensure public participation and support. The 7th EAP also confirmed that public
information campaigns are required to build awareness and understanding of
waste policy and to stimulate a change in behaviour.  
Examples of awareness
raising and communication initiatives: 
The Commission
dedicated its 'Green Week' to resource efficiency in 2011 This
large conference attracts participants from government, business and industry,
non-governmental organisations, academia and the media and offers a unique
opportunity for debate and exchanges of experience and best practices. In 2014,
Green Week is devoted to the circular economy. 
In 2011, the
Commission launched an EU-wide campaign on resource efficiency: 'Generation
Awake'. The campaign is part of a wider effort to raise awareness about
economic, social and environmental benefits of using natural resources in a
more efficient and sustainable way. Since 2014 the emphasis of the campaign is
on the circular economy and better waste management. It aims to encourage EU
citizens to discover the value of waste and to recycle, reuse, exchange,
upcycle, repair rather than throw away. Key tools and activities include an
interactive website www.generationawake.eu in 24 languages, social media activities
and other promotional means. The results to date include more than 6 million
videos views, over 1.400 articles published; a million visits to the website,
and 120.000 social media followers.
5.      Mapping
the way forward
5.1.                       
Recommendations
of the European Resource Efficiency Platform
The
multi-stakeholder European Resource Efficiency Platform was set up in 2012 to
provide high-level guidance to the European Commission, Members States and
private actors on the transition to a more resource-efficient economy. It gathered
European Commissioners, Members of the European Parliament, business and
thought leaders, representatives of national and regional authorities, civil
society and academia. In the course of its mandate the Platform issued
a policy Manifesto (in December 2012), a first set of recommendations
"Action for a resource efficient Europe" in June 2013 and a second
set of recommendations "Towards a resource efficient and circular
economy" in March 2014.
The
Platform identified the following priority actions[54]: 
-         
Setting
objectives, measure and report progress;
-         
Improving
information on environmental and resource impacts for decision making;
-         
Phasing
out environmentally harmful subsidies;
-         
Moving
towards a circular economy and promoting high-quality recycling;
-         
Improving
resource efficiency in business–to-business relations;
-         
Taking
forward a coherent, resource efficient product policy framework;
-         
Delivering
a stronger and more coherent implementation of Green Public Procurement;
-         
Developing
instruments for SMEs;
-         
Promoting
new, resource efficient business models;
-         
Boosting
Extended Producer Responsibility;
-         
Enabling
consumers to make more sustainable choices;
-         
Developing
employment and skills; and
-         
Financing
to enable the transition.
The
Platform also called upon the EU to set a target for a substantially increased
decoupling of growth from the use of natural resources, in order to improve
competitiveness and growth as well as quality of life. It stated that the
target should aim to secure at least a doubling of resource productivity as
compared with the pre-crisis trend, equivalent to an increase of well over 30%
by 2030. 
5.2.                       
Consultation
with the Member States
In
order to develop or strengthen existing national resource efficiency
strategies, and mainstream these into national policies for growth and jobs,
exchange on national resource efficiency strategies and EU policy developments
is supported by a Member State group on resource efficiency gathering twice a
year. The following areas of shared interest were identified at its first
meeting in the autumn of 2012, and many of them were subsequently a subject of
discussion[55]:
-         
cooperating
on environmental tax reform, and unlocking the process for removal of
environmentally harmful subsidies;
-         
product
standardisation, eco design: promoting resource efficiency in standards and
technical norms, addressing issues such as recyclability, etc.;
-         
tackling
barriers to implement the waste hierarchy, encouraging producer responsibility
schemes and industrial symbiosis;
-         
encouraging
consumers to buy greener products: initialising
consumer friendly information campaigns, improving consumer friendly labelling
schemes;
-         
green
public procurement (GPP): harmonised support for MS as regards criteria that
can be included in a procurement tender and evaluation, considering making the
50% GPP target[56]
mandatory;
-         
tackling
sectors using biotic resources, and exploring the potential of the food sector
to achieve greater resource efficiency;
-         
dissemination
of good practices among businesses, in particular SMEs: demonstration projects,
helping with evidence, developing methodologies;
-         
developing
resource efficiency indicators and potential targets; and 
-         
exchanging
experience on the knowledge base and pooling economic evidence (modelling) in
the field of resource efficiency. 
Examples of
Member States resource efficiency initiatives
In Germany,
in the framework of the national strategy for sustainable development, the
decoupling of economic growth and material consumption has been underlined
since 2002. In 2012, in implementing the EU Waste Framework Directive, a law
was adopted promoting the circular economy and ecologically sound waste
management that calls for a closed material loop. This law is a part of a
broader programme for an efficient use of resources (PROGRESS).
The UK developed
an initiative on circular economy WRAP[57],
estimating that a circular economy could generate 50 000 new jobs and EUR 12
billion of investment, boosting GDP by EUR 3.6 billion. Taking circular economy
principles into account when designing products could allow for 140 million
extra tons of waste to be successfully captured between now and 2020, leading
to EUR 1.7 billion in extra recyclate revenues for the UK economy.
In the
Netherlands, it is estimated that shifting to a circular economy would
bring[58]
a reduction of 17,150 kt in CO2 emissions, a reduction in land use
of 2,180 km2, avoided use of fresh water of 0.7 billion m3 and
avoided use of raw materials of 100,400 kt (more than 25% of the total imports
of goods by weight in the Netherlands/year). The circular economy could amount
to EUR 7.3 billion a year in market values (or 1.4% of today’s GDP) and could
create 54 000 jobs.
In 2013 France
developed a strategy with long term measurable objectives and a roadmap to
transition to Circular Economy. The French Institute for Circular Economy
brings together a wide range of stakeholders, and promotes exchange of best
practices, awareness-raising, research and development of concrete examples.
The outcome of consultations underway will be summarized in a white paper, with
a view to adopting legislation on the circular economy by 2017.
In various EU MS
a number of agencies provide support services, including advisory
services, skills transfer and funding for SMEs to help them become more
resource efficient and exploit growing business opportunities in the circular
economy, for example: 
* The North
Rhine Westphalia Effizienz-Agentur has put in place a toolbox to help SMEs
increase resource efficiency, including advice cutting resource use, and access
to funding. Over 500 SMEs have taken part, generating almost EUR 40 million
investment and saving EUR 12 million a year in resource costs 
* "Resource
Efficient Scotland", offering free, specialist advice to businesses on
resource-efficiency savings in energy, water, raw materials and waste
management, with access to interest free loans also provided.
*
EcoBusinessPlan Vienna provides advisory services for resource efficiency
improvements in SMEs, resulting in over EUR 100 million of savings in operating
costs 
* The Enworks
project in North West England helps companies to use resources such as
energy, materials and water more efficiently, and to reduce the amount of
residual waste that goes to landfill. For every £1 of public investment, £10 of
bottom-line savings for businesses are generated. 
5.3.                       
Outcomes
of the Resource Efficiency Finance Round Table 
The
transition to a resource efficient economy in the EU will require a significant
shift in investments. In order to identify the main barriers that prevent this
shift from happening, and the actions that could be taken to remove these
barriers, the Commission has established a dialogue with the financial sector,
notably by organising a Resource Efficiency Finance Roundtable with high level
representatives from the financial sector in February 2013. 
In
addition to getting the resource prices right, the main barriers identified to
investments in resource efficiency include the perceived higher risk of
resource efficiency investments, their complexity (both technical and
financial), the lack of available information for investors on the
sustainability of investments, and the overall short termism of financial
markets. As a result, the financial impact of resource depletion on investment
portfolios is not sufficiently taken into account by investors. Stakeholders
recommended a number of actions to address these barriers, including:
-         
Disclosure
by companies and investors of the way they take into consideration resource
issues (including their risk exposure to resources), and integration of
resource efficiency in the responsibility of financial actors (fiduciary
duties);
-         
Evaluating
the impact of resource scarcity for businesses and the economy, in particular
through "resource stress tests" for companies
-         
Exploring
the potential of the bond markets in the resource efficiency context, in order
to reach out to large investors;
-         
Developing
financial instruments to cater for resource efficiency investments, using the
EU budget and closely involving the European Investment Bank;
-         
Putting
in place the right incentives to avoid discouraging long term investments, and
ensuring that accounting standards take proper consideration of the costs and
liabilities linked to resource use;
-         
Developing
dialogue and awareness on the relevance of resource efficiency for investments
with the financial sector. 
As
a follow-up to this dialogue, the Commission has foreseen a number of studies
to examine in more detail the issues of accounting standards, fiduciary duty,
resource stress tests for companies, and the potential of the bonds market. The
work developed in the context of long term finance, including the Green Paper[59] is
also highly relevant for addressing barriers to resource efficiency
investments.
The
Communication on Long-Term Financing of the European Economy, adopted by the
Commission on 19 March 2014 includes actions related to transparency of
investors and asset managers on environmental, social and governance issues,
and on the link between fiduciary duties and sustainability. Study work now
being initiated will inform the Commission of further policy steps to be taken.
The
Commission has also made two proposals that would increase the amount of
information available to investors (both institutional investors and retail
investors): the proposal on non-financial reporting[60],
which requires large companies to report on relevant social and environmental
factors, and the proposal on key information documents for investment products[61],
whereby it would be mandatory for mutual funds to inform retail investors on
how environmental, social and governance concerns are taken into account in
their investment. Finally, awareness raising actions that the Commission has
put forward on resource efficiency include elements on the financial benefits
of resource efficiency. 
6.      Conclusion
The
majority of the actions announced in the Roadmap have been launched. However,
its 2020 milestones and the overall objective of decoupling economic growth
from resource use and its environmental impacts are not likely to be fully
achieved unless efforts are stepped up. In some cases implementation of agreed
action will be essential, while in others this has to be combined with
agreement on further policy development – as is the case for the outcomes of
the waste policy and targets review. Significant shifts in fields linked to
products, production and consumers are still not guaranteed, while there are
areas, such as financing, where policy initiatives still need to be shaped by
further analysis. 
Future
action on resource efficiency by the EU and Member States will be underpinned
by the commitments under the 7th EAP and informed by the results of
the mid-term review of the Europe 2020 Strategy. In the Communication on
"Taking stock of the Europe 2020 strategy for smart, sustainable and
inclusive growth"[62]
the Commission identified pressure on resources and environmental concerns as a
key long-term trend affecting growth. 
As
an important next step in the resource efficiency agenda, the Commission has
identified the need to facilitate the shift to a more circular economic model.
An
innovative, circular economy where nothing is wasted and where natural
resources are managed sustainably, and biodiversity is protected, valued and
restored is central to the vision of the 7th EAP. Based on the
reusability of products and raw materials, and the restorative capacity of
natural resources, a circular economy will lead to fewer
resources being extracted, less energy used and less waste generated, while
precluding the release of toxic substances in the environment and relying on
clean energy sources. Together with efficiency improvements in the use of
resources, such a model should contribute to a substantial increase in the
resource productivity of the EU. 
Action
on the side of national, regional and local governments is important, since in
many cases the most effective policy instruments to promote efficient resource
use and implement sustainability in practice are in their hands – for instance
in the areas of waste and water management, urban planning, or public
procurement. Leadership from business remains essential to bring about change
in many fields such as sustainable sourcing, and better cooperation in the
value chain. Citizens are increasingly aware and supportive of resource efficiency,
while a shift to more sustainable consumption and behaviour has to be further
promoted. Internationally, there is a real opportunity to put an effective
post-2015 Development Agenda in place, and tap the potential of the green
economy to address the related challenges of poverty eradication and
sustainable development. 
[1]                COM(2010) 2020
[2]                COM(2011) 21
[3]                COM(2011) 571
[4]                EUCO 4/3/12
[5]                http://ec.europa.eu/environment/integration/green_semester/index_en.htm
[6]                OJ L 354 , 28.12.2013, p. 171 - 200
[7]                COM(2013) 92
[8]                18346/11
[9]                6678/12
[10]              P7_TA(2012)0223
[11]              CESE 831/2012 - NAT/529
[12]              CESE 2407/2012 - NAT/590
[13]              CdR 140/2011
[14]              See the Register of Commission Expert Groups, http://ec.europa.eu/transparency/regexpert/

[15]              Flash Eurobarometer 388: Attitudes of Europeans
towards Waste management and Resource Efficiency
[16]              EUROSTAT data
[17]              Ecorys (2012), The number of Jobs dependent on the
Environment and Resource Efficiency 
[18]              BECOTEPS (2011) The European Bioeconomy in 2030:
Delivering Sustainable Growth by addressing the Grand Societal Challenges
[19]              GWS mbH (2011), Macroeconomic modelling of sustainable
development and the links between the economy and the environment 
[20]              AMEC (2013), The opportunities to business of
improving resource efficiency 
[21]              Oakdene Hollins “Further Benefits of Business Resource
Efficiency” 2011, see also https://www.gov.uk/government/policies/encouraging-businesses-to-manage-their-impact-on-the-environment

[22]              “The economic benefits of environmental policy”, GHK
(2009),
[23]              "Study on Modelling of the Economic and
Environmental Impacts of Raw Material Consumption", Cambridge Econometrics
et al (2014)
[24]              SWD(2014) 211
[25]              http://epp.eurostat.ec.europa.eu/portal/page/portal/europe_2020_indicators/ree_scoreboard

[26]              COM(2009) 433
[27]              http://eplca.jrc.ec.europa.eu/ 
[28]              OJ L 192, 22.7.2011, p. 1–16
[29]              COM(2013)196 and Commission Recommendation 2013/179/EU
[30]              http://ec.europa.eu/enterprise/policies/sustainable-business/ecodesign/methodology/index_en.htm 
[31]              See for details JRC Technical Reports (2012),
"Integration of resource efficiency and waste management criteria in
European product policies – Second phase"
[32]              COM(2012) 582
[33]              COM/2014/014
[34]              EUCO 7/1/14 REV 1
[35]              COM(2011) 144
[36]              COM(2012) 60, SWD(2012) 11
[37]              IP/12/888
[38]              2012/19/EU
[39]              333/2011
[40]              1179/2012
[41]              715/2013
[42]              COM(2013) 516
[43]              "Screening of regulatory framework",
Technopolis Group (2013)
[44]              Based on results from 125 projects reported two years
after their completion; the final report and infographics are available here: http://ec.europa.eu/environment/eco-innovation/discover/publications/index_en.htm

[45]              http://www.eco-innovation.eu/

[46]              “remaking the industrial economy”, McKinsey Quarterly,
February 2014
[47]              http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2014:0097:FIN:EN:PDF

[48]              SWD(2012) 101 final/2
[49]              COM(2013) 517
[50]              OJ L 347/320, 20.12.2013. 
[51]              OJ C209, 23.07.2013
[52]              Study on Environmental Fiscal Reform Potential in 12
EU Member States (2014), Eunomia Research & Consulting et al.
[53]              Study on Economic and Social Benefits of Environmental
Protection and Resource Efficiency Related to the European Semester (2014), RPA
et al.
[54]              http://ec.europa.eu/environment/resource_efficiency/re_platform/about/meetings/index_en.htm

[55]              See the register of Commission expert groups http://ec.europa.eu/transparency/regexpert/index.cfm?do=groupDetail.groupDetail&groupID=2812&NewSearch=1&NewSearch=1

[56]              COM(2008) 400
[57]              http://www.wrap.org.uk/content/wrap-and-circular-economy 
[58]              TNO, Opportunities for a Circular Economy in the
Netherlands (2013).
[59]              COM(2013)150
[60]              COM(2013) 207
[61]              COM(2012) 352
[62]              COM(2014) 130