How can business and the investment community be effective partners in the EU sustainable...

European Commission: DG Information Society and media

Partnership with the European strategy for sustainable development

[email protected]

TBLI- Paris – November 2006


European policy for sustainable development

Policies that need to be consistently implemented across all 25 Member-States of the European Union, are proposed by the European Commission and decided by Member State Governments in the European Council

The achievement of sustainable development is a Treaty obligation of all Member States: The president of the Council must seek a consensus on a common strategy

A first strategy was agreed in 2001. It has been reviewed by the Commission in 2004-5, and a renewed strategy was adopted by Heads of State in June 2006


7 key challenges

Climate change and clean energy; Sustainable transport; Sustainable production and consumption; Conservation and management of natural

resources; Public health; Social inclusion, demography and migration Global poverty and sustainable development


Key changes in the renewed strategy:2001-2006

A stronger focus on research, technology and innovation for all goals;

A stronger partnership with business, notably with the leaders of technological, economic and social innovation; “Business leaders and other stakeholders…. Should engage in urgent reflection with political leaders on the medium- and long-term policies needed for sustainable development, and propose ambitious business responses which go beyond existing minimum legal requirements”: A proposal to foster this process will be made by the Commission in 2007


Greenhouse gases Atmospheric CO2 concentration has risen by over 30 % since

pre-industrial era to 380 ppm


Pattern of probable average temperature changes, 2080s relative to present day

Lähde: Hadley Centre

Climate Change is the top priority…


The new realityThe bad news: New research suggests increased GHG

concentrations will cause earlier and more damaging climate change: Urgent shift to a low-carbon economy with less dependence on fossil fuels

The good news: Emerging technologies for greater energy-efficiency

and low-carbon renewable energies offer the potential for a rapid transition to an efficient, diverse and de-centralised energy system.


Specific EU actions Financial incentives to cut carbon emissions in the

most cost-effective way: EU Emissions Trading System An Environmental Technology Action plan to co-

ordinate research and accelerate market introductions An Action Plan to improve energy efficiency by about

2.5% p.a to realise energy savings of 20% by 2020; Actions to cut transport intensity (vehicle-kms per

GDP) with better logistics and infrastructure charging; “Green” public procurement by 2010


Energy-use projections for Europe:Targeted growth in renewables and 2.5% improvement in energy efficiency per year

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1990 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020Year

MTOE Total energy use

Total renewable energy

Total fossil fuels


Carbon emissions can be cut significantly by 2020 without compromising economic growth

Carbon emission projections

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1990 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020Year

MT Carbon relative to 1990

Business as usual - 1% p.a better energyefficiency

2.5% p.a. better energy efficiency

3.5% p.a. better energy efficiency


Recent Trends in U.S. Energy Intensity

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1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000

Megajoules/$GDP

1973-1986 Average Rateof Decline ~ 2.6% per Year




The network structure of the Internet


How can innovations based on information and communications technologies help?

Higher-skill jobs for more of the working-age population

More added-value in more resource-efficient products: some products become immaterial services;

More efficient supply-chains, intelligent and cleaner vehicles and new forms of mobility;

More efficient heating/cooling and lighting in intelligent buildings and more efficient use of buildings;

“Spin-off” technologies for solar energy and lighting


A holistic approach to resource productivity

“Pay-per-use”: Product rental, “take-back” and recycling – WEEE targets - 65% recycling and 75% recovery by end 2006

Increased efficiencies for use of energy, space/land, and travel/transport in knowledge work;

Attention to external and internal impacts: Supply-chain; marketing/retail, and employee commuting;


Strengthening frameworks for“Triple-bottom-line” reporting

“Profit/loss”,

Human resources

“Environment, Health and Safety”

Profit, productivity and Investments in RTD

Human capital - qualifications, retention and training; health, safety and creativity;

Resource productivity : Transport, land and energy.

How can business and the investment community be effective partners in the EU sustainable...

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