1. Cleaner Production: the European Commission Perspective Timo Makela Director Sustainable Development & Integration Directorate General Environment, European Commission, Brussels

2. This presentation Defining the problem Industrial impact on environment Business environment for innovative industry Seeking solution Sustainable Production and Consumption Lisbon Strategy and ETAP New Financial Perspective and CIP

3. There are some good news… WHAT HAS BEEN ACHIEVED? Climate change: Ratification of Kyoto, Emission trading, Energy taxation Directive Transport: Bio fuels Directive, Marco Polo programme (modal shift) – but emissions remain a problem EU is on a good path to meet National Emission Ceilings

4. …but there are some bad news too GHG emissions – mixed progress – EU-15 far too slow in reductions, EU-10 target already achieved – what after 2012? Biodiversity loss is worrying Transport – emissions grow along GDP Urban air quality – impact of PM 10 on health Energy dependency grows - 2/3 of overall EU energy use imported by 2020 (<1/2 in 1995), gas gaining highest growth

5. Is the business environment good for environment-friendly companies? On the one hand:  First-mover disadvantage Poor access to the capital High risk for new eco- innovations Banking sector – business as usual SMEs Rigid labour markets On the other hand:  World market for the eco- technologies worth ca 500 billion euro Market growth ca 5-10% per year New markets opened with enlargement Faster growth than the rest of the economy – France New jobs – Germany Risk investments grow faster – 6 th highest sector

6. Seeking solutions

7. Sustainable Development in the EU Sustainable Development as the overarching objective for all EU policies Since adoption of Agenda 21 technological development and innovation have increased resource efficiency and enabled environmental gains. Yet, these gains are often outweighed by increased consumption and changes in life styles, such as increasing mobility. The main challenge is “decoupling”, to cut the link between economic growth and environment degradation. Failure to act now on environmental problems may lead to higher future cost or irreversible damage, to lost opportunities for cost- effective solutions and to the loss of competitiveness.

8. Sustainable Production and Consumption We need not necessarily consume and produce less, but rather to consume and produce differently - to make more from less We also need to respect our international engagements and ensure that our ways of producing and consuming do not harm sustainable development in developing countries Changing consumption and production patterns is one of the overarching objectives of sustainable development In the 2002 Johannesburg Plan of Implementation (JPOI) all countries are called to "Encourage and promote the development of a 10-year framework of programmes in support of regional and national initiatives” (Ostend meeting 24-26 November 2004) SPC is a part of the EU Growth and Jobs strategy

9. SPC – what’s been achieved? Inventory of Sustainable Consumption and Production in the European Union: http://europa.eu.int/comm/environment/wssd/documents/scp_eu.pdf http://europa.eu.int/comm/environment/wssd/documents/scp_eu.pdf EU Sustainable Development Strategy (2001) The Cardiff Process (since 1998) to promote integration of environmental considerations into other sectoral policies, as required under Article 6 of the Treaty. According to this process, the Council developed integration strategies in 9 sectors. Every major EU proposal must now undergo an impact assessment that examines it economic, social and environmental effects The 6th Community Environmental Action Programme (2002- 2012) is a cornerstone of our efforts towards more sustainable consumption and production patterns.

10. SPC – what’s been achieved The 6EAP will be complemented by the end of 2005 by 7 thematic strategies, including the thematic strategy on the sustainable use of natural resources Strategy for Integrated Product Policy (IPP) – a new approach of moving towards reducing the negative environmental impacts of products and services across their whole life-cycles The Environment Technology Action Plan (2004) – tapping the full potential of environmental technologies in contributing to EU competitiveness and growth while protecting the environment Green Public Procurement: National Action Plans and a handbook for local authorities to help them to buy green (2004) Voluntary schemes: EMAS and Eco-label (to be revised 2006) …and specific policies – Climate Change, Water, Chemicals (REACH), etc.

11. SPC: Challenges ahead Focus on energy, resource policies, life-cycle impacts and eco- design How to deal with consumption? Transport is a sector where integration and policy coherence remains a key challenge Incorporate the full environmental costs into products and services Find new ways of working together and involving all key stakeholders No magic, one-fit-all solution. Mix of measures and instruments needed.

12. Lisbon Strategy and Environment Council conclusions March 2005: Environment is an essential element of Lisbon Environmental policy can contribute to growth and employment Focus on eco-innovation and eco-technology, sustainable management of natural resources and energy efficiency International cooperation to continue in pursuit of sustainable development Focus needed on better implementation, on continuing to improve environmental policy making and on integration of environment into other sector policies Environment action is needed to meet citizens expectations

13. ETAP – a key element of the Lisbon Strategy Main achievements in 2004: integration in EU R&D work programmes 22 technology platforms established, 1/3 relevant for ETAP networks of testing centres being set up co-operation with Member States has started on key priorities: GPP, financial instruments, R&D preparatory work on performance targets

14. New Competitiveness and Innovation Programme (Commission proposal adopted on 6/04/05) Replaces the existing programmes for SMEs (MAP), Intelligent Energy, LIFE Environment, some ICT programmes (eTEN, eContent, Modinis) and some RTD actions for SMEs Eco-innovations in CIP: In the ‘Entrepreneurship and Innovation programme’ Facilitating SMEs access to finance: €150 mio. Promoting innovations: €370 mio. ‘Intelligent Energy Europe programme’: € 780 mio. EU Competitiveness and Innovation Framework Instrument New Financial Perspectives 2007-2013 still under discussion with EP and Council Earmarked for eco- innovations

15. Thank you for your attention! Timo Makela Director Sustainable Development & Integration Directorate General Environment, European Commission, Brussels timo.makela@cec.eu.int +32 2 29 62634