New report shows the way to a greener European economy

There is potential for Europe to remain an attractive place for investment and industry while pursuing an eco-efficient economic strategy focusing on innovation and industrial renewal. This is the gist of a report by researchers from Stockholm Environment Institute and Lund University in Sweden to be launched tomorrow. The report, entitled A European Eco-Efficient Economy has been prepared for the 2009 Swedish Presidency of the Council of the European Union. It will be used to stimulate debate at the informal meetings of environment, energy and competitiveness ministers in July and October. SEI will launch the report at 10:15 on 30 June at the Miljöaktuellt Arena in Almedalen. A panel debate, including Svante Axelsson, Stefan Fölster and Johan Rockström will be webcast on www.sei.se.

The report describes the opportunities for Europe to become a leader in the global transition to an eco-efficient economy. Eco-efficiency, which was first coined by the World Business Council for Sustainable Development in 1992, refers to the strategic quest to exploit as far as possible the synergies between climate and resource governance, competitiveness and economic development. The report suggests a set of actions and agenda items to step up Europe's (and in particular the EU’s) efforts to foster an eco-efficient economy.Three areas are considered to be strategically crucial for the development of a greener economy: resource systems efficiency, new technology markets and global carbon pricing. To achieve this, current institutional and political structures and processes also need reform. First, it is necessary to understand how systems develop and routinely gather evidence for policies and their impacts. Second, policy making must be better integrated, at different decision-making levels and between different sectors. Third, it is necessary to have policies that bring about the development and diffusion of technologies. - It is technically possible as well as economically viable to pursue these strategies towards far-reaching climate, resource and development objectives. But they require policy actions and behavioural responses by companies and consumers at European and global scales, Måns Nilsson says. Financial recession can prove to be an effective show-stopper for long-term strategic commitments, but the recent financial crisis also offers grounds for optimism. It has put additional pressure on European leaders to stake out the way towards an economic development that is able to generate investment, job creation and welfare while at the same time curbing energy and raw material prices, mitigating climate change threats and reversing the global tapping of natural resources. - This is what the quest for an eco-efficient economy is all about. A global transition to a low carbon economy in order to tackle climate change represents a major opportunity for all countries to embark on cleaner development, Nilsson argues. A downturn in the economy also crystallizes the opportunity to promote and invest in, for instance, green cars, efficient appliances, infrastructure, better insulation and alternative energy. These are all significant public-private investment synergies necessary for climate change mitigation.

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