Environmental management and innovation strategies René Kemp UNU-MERIT, ICIS, DRIFT Presentation 4 Environment and Sustainable Development course UNU-MERIT PhD programme

It is wrong to see environmental technologies as those that deal with pollution. We need to have a broader mindset: “Our perspective on what technologies are green, brown, or environmentally-friendly has been conditioned by decades of regulatory obsession. Like all obsessions, this is psychologically comforting but cognitively limited, and has focussed our collective attention on hardware-based solutions to waste minimizations and end-of-pipe solutions.” (Rejeski)

Eco-innovations may be developed with or without the explicit aim of reducing environmental harm They may be a side effect of the usual business goals such as productivity or enhancing product quality

Source: IMPRESS survey under 1594 companies in five European countries (Germany, Italy, Switzerland, the United Kingdom, the Netherlands).

Barriers to eco-innovation economic barriers, ranging from market prices which do not reflect the external costs of products or services (such as health care costs due to urban air pollution) to the higher cost of investments in environmental technologies because of their perceived risk, the size of the initial investment or the complexity of switching from traditional to environmental technologies; regulations and standards can also act as barriers to innovation when they are unclear or too detailed, while good legislation can stimulate environmental technologies; insufficient research efforts, coupled with inappropriate functioning of the research system in European countries and weaknesses in information and training; inadequate availability of risk capital to move from the drawing board to the production line; lack of market demand from the public sector, as well as from private companies and consumers Source: ETAP

Source: Ashcroft

Source: Adeoti (2001)

Source: Luken and van Rompay (2006)

Different frameworks and methods Rathi: no espoused framework Ekboir: innovation system framework in which a technology and the network of actors is central unit of analysis (with special attention to role of public research) Clark, Hall..: capacity framework with attention to actors, institutions, beliefs, knowledge and capabilities Luken and van Rompay: Multiple stimuli framework (regulator, market, community) using surveys and interviews Adeoti: Major drivers and auxiliary drivers framework using survey and interviews plus institutional analysis

Clean, Clever and Competitive, Presidency conclusions Informal Environment Council [ | Press releases | Environment ] 1. Europe can strengthen its competitiveness by further applying eco-efficient innovations and being the most eco-efficient economy. This will not only avoid the high social and environmental costs of in-action, it will also capitalise on the economic benefits of cost saving, new markets, quality of products and eco-efficiency as a brand. This will give Europe a strong competitive edge. Many examples of this already exist throughout Europe. 2. This message should be an essential part of the well focused and appealing contribution of the Environment Council to the review of the Lisbon process. The strong and reinforced recognition of the Lisbon ambition to become the most eco-efficient economy is already a driver for the innovations that underpin the possibility to achieve the Lisbon goal. 3. Market penetration is the main challenge for existing and future eco-efficient innovations. Both in member states and at EU-level instruments should be further developed to give eco-efficient innovations a fair and competitive market perspective. 4. The EU should create such perspectives by actually implementing a mix of instruments such as public procurement, fiscal incentives and green investment criteria. The internalisation of external costs and the reform of environmentally harmful subsidies are important to establish the right price signals.

Conclusions of Environment council-- continued 5. The pro-activity of business should be strengthened by for example rewarding front-runners and bench marking of eco-efficiency performance. 6. Clear and ambitious long-term targets can drive innovations. Environmental legislation should be founded on fact-based and balanced impact-assessments, consistent, flexible and future oriented and not technology prescriptive. The EU could make EU legislation more supportive of eco-efficient innovations by engaging in an active dialogue on these aspects. 7. Focussed long-term research and development efforts are crucial to further develop new innovations. 8. A joint effort with business is needed to fully grasp the opportunities of eco- efficient innovations. A well informed and proactive dialogue with industry and other stakeholders should be continued. Strong support for SMEs through risk capital provision and capacity building is important to capitalize on their important role in the innovation process. National and local support is needed for this. 9. The Environment Council should create alliances with other Councils to create supportive conditions for eco-efficient innovations given the economic and ecological benefits.