Eco-innovation: European trends and regional action tools

RECOMMEND workshop Peterborough 27 November 2012

Eco-innovation trends in Europe

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What is eco-innovation?

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What is eco-innovation?

Eco-innovation is any innovation that reduces the use of natural resources (including materials, energy, water, biomass and land) and decreases the release of harmful substances across its whole life cycle.

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What is eco-innovation?

Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful

substances across its whole life-cycle.

impact on environment (resources and emissions) impact on economy (turnover, profit, sales, exports, jobs) impact on society (jobs, quality of life) 5

Why eco-innovation?

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Why eco-innovation?

The EU has achieved a relative de-coupling of GDP growth from material use. The absolute level of consumption has continued to grow in the same time.

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Why eco-innovation?

• • • Saving material and energy costs New products and services: new markets New business models • • • Sustainable management of resources Tackling climate change Improving biodiversity • Decrease the environmental footprint • • Quality of life and green jobs Resource justice • Material security

economy environment social politics

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EU Eco-innovation scoreboard 2012

Good EI achievers EI Leaders Average EI performers Countries catching up in EI

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EU Eco-Innovation scoreboard breakdown 10

Eco-innovators in the EU (CIS 2008) Share of companies reporting reduced material use per unit of output as a result of innovation (red) and share of companies with any innovation activity (black ) 11

Eco-innovators in the EU (Eurobarometer 2011) • • 45% of companies in Europe in manufacturing, construction, agriculture, water and food services have introduced at least one eco- innovation in the past two years (Eurobarometer 2011) Result of innovation introduced in company in (the past 24 months) in terms of resource efficiency? 2%2% 34% 10% 10% 42% More than 60% reduction of material use per unit output Between 40% to 60% reduction of material use per unit output Between 20% to 39% reduction of material use per unit output Between 5% to 19% reduction of material use per unit output Less then 5% reduction of material use per unit output DK/NA 12

Benefits from eco-innovation DEMEA • Material efficiency improvements in companies advised by DEMEA (German Material Efficiency Agency) could lead on average to € 200,000 savings per company. The savings could be achieved with an investment of under €10,000 in nearly half of the companies covered by the scheme (Demea 2010) 13

Eco-innovation trends • • • • • Eco-innovation activity is widespread among European companies Eco-innovation can lead to a substantial reduction of material cost of companies There is a high degree of diversity in EU in terms of eco-innovation performance Majority of EU companies report incremental eco-innovations Strong eco-innovation performance does not automatically lead to strong environmental performance in absolute terms 14

How can regions support the development of eco-innovation?

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Approaches to regional eco-innovation support • Although competences and responsiblities vary significantly from one country to another, regions are legitimate stakeholders: • • • •

Regions can play a role as consumer (e.g. energy and implementation of energy saving activities, green public procurement); Regions may be local producers and supplier of services & utilities (e.g. heating and energy solutions) Regions may play a role as regulators, setting standards and local laws Regions can play a role as as motivator and facilitator, inspiring and supporting the adoption of eco-innovative practices

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Approaches to eco-innovation at the regional level

I ssues Targets Eco innovation Sectors Techs Policies Processes

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Typology of eco-innovation policy support instruments

Criteria Funding mode Position of support in innovation chain Specificity for eco-innovation Groups Non financial

Financial: guarantees, loans, fiscal incentives, grants/subsidies/vouchers, venture capital Supply side focus: Equity/business support, support for R&D: basic research, support for R&D: applied research, support for R&D: development & demonstration; education, training and mobility; networks and partnerships Demand side focus: Regulations and standards; Public procurement; Guarantees & other support for additional risks of early buyers; Export promotion activities; Support for private demand Relevant for EI but EI not specifically focused Focused on eco-innovation (but applicable in other areas of innovation) Only possible in area of EI (e.g. regulation)

Thematic focus Other

Generic Focused one environmental issue: Resource efficiency, Energy efficiency Focused on environmental management processes: Eco-management, eco-design Measurement/ benchmark instrument, Eco-innovation strategies, Eco-innovative solutions (product, process, technology), eco-innovation assessment tools 18

Thank you Carlos Hinojosa Technopolis Group [email protected]

technopolis |group| has offices in Amsterdam, Ankara, Brighton, Brussels, Frankfurt/Main, Paris, Stockholm, Tallinn and Vienna 19