Green Economy in EU:Policy and Case Studies

Niccolò LombardiProject Manager, KnowlEdge Srl

Astana, 13/11/2013

Contents1. Introduction2. GE Policy in EU3. Energy Efficiency and Renewable Energy4. GHG Emissions and Air Pollution5. Waste6. Water7. Sustainable Production and Consumption8. Biodiversity9. Conclusion

1. Introduction

Green economy policies have the overall objective of creating the enabling conditions for a shift to more sustainable production and consumption patterns.

1. Introduction

Key objectives of public green policies include, among others: • Leveling the playing field for greener

products by phasing out antiquated subsidies.• Reforming policies and providing new

incentives.• Strengthening market infrastructure and

market-based mechanisms.• Redirecting public investment.• Greening public procurement.

1. Introduction

.

Four main ways for governments to influence behavior and shape future trends :

Investments Incentives and Disincentives Public Targets Mandated by Law Social Interventions

2. GE Policy in EU

.

General Objectives

Specific Targets

Policy Instruments

2. GE Policy in EU

.

Non-binding objectivesGoals set out in Commission communications, environmental action programmes and European Council Presidency conclusions, as well as those incorporated into EU legislation.

Binding targetsBinding goals established by EU legislation (regulations, directives and decisions) and international legislation that Member States and the EU are required to achieve.

Source: EEA, 2013

2. GE Policy in EU

Source: EEA, 2013

Non-binding Objectives

2. GE Policy in EU

Source: EEA, 2013

Binding Targets

3. Energy Efficiency and Renewable Energy

20 % increase in energy efficiency by 2020.

20% of EU energy consumption produced from renewable resources (Binding).

Key objectives and targets

3. Energy Efficiency and Renewable Energy

Policy Example: KfW Energy-Efficient Construction and Refurbishment Programme - Germany

Impacts:• 360,000

housing units reached

• 370,000 jobs created

• Energy savings of 2,200 Gigawatt

Source: CA-EED, 2013

4. GHG Emissions and Air Pollution

Reduction in total EU greenhouse gas emissions (including both energy and non-energy related sources) from 1990 levels:

• 20% reduction by 2020 - Europe 2020 Strategy• 40% reduction by 2030 – Roadmap for a Low Carbon

Economy• 80% reduction by 2050 - Resource efficient Europe

flagship initiative

Thematic Strategy on Air Pollution: Air pollutants reduction, compared to 2000 levels:• Sulphur dioxide: 82 %; Nitrogen oxides: 60 %;

Volatile organic compounds: 51 %; Ammonia: 27 %; Primary PM2.5 (59 %).

Key general objectives

4. GHG Emissions and Air Pollution

Roadmap to a Single European Transport Area• Reduction in CO2 emissions from the transport sector:

20% by 2030 compared to 2008 levels, and 60% by 2050, compared to 1990 levels.

• Conventionally fuelled cars in cities: 50% reduction by 2030, and complete phasing out by 2050.

• Shift of road freight over 300 km to rail/waterborne transport: 30% by 2030 and 50% by 2050.

• Shift of the majority of long- and medium-distance passenger road transport to rail by 2050.

• 40% increase in use of low carbon fuels by airlines by 2050

• 40% reduction of carbon emissions from shipping by 2050, compared to 2005 levels.

Key general objectives

4. GHG emissions and Air Pollution

• Fuel taxes, e.g. environmental taxes on fuels account for about 57% of total price of diesel in the Netherlands.

• Fee-bate, e.g. France bonus-malus system.• Buy-back, e.g. 1,500€ scrappage incentive in

Italy.• EU Green Car Initiative, €5 billion plan

through a Public-Private-Partnership to support innovation in the automotive sector.

Policy Examples – Transport Fiscal Policies and Economic Instruments

5. Waste

Roadmap to a Resource Efficient Europe (2020 objectives):• Waste is managed as a resource • Absolute decline of waste generated per

capita• High quality recycling• Limit energy recovery to non-recyclable

materials• Virtually eliminate landfilling• Eradicate illegal shipments of waste

Key general objectives

5. Waste

• 19 Member States have a tax • Taxes vary: €3 (BG) - €107.49 (NL) per tonne

Policy Example – Pay-as-you-throw Taxes

Source: EC, 2012

6. Water

Roadmap to a Resource Efficient Europe (2020 objectives):• Keep water abstraction below 20% of

available renewable water resources.• Alternative water supply options are only

relied upon when all cheaper savings opportunities have been taken.

• The impacts of droughts and floods are minimised.

Key general objectives

6. Water

Water Law of 2006 imposes the equipment of volumetric metering devices, and defines the conditions under which users can abstract surface and groundwater resources.

Regulations are also more stringent in some areas qualified nationally as suffering of chronic water shortage.

Policy Example: Agriculture Water Pricing - France

7. Sustainable Production and Consumption

Roadmap to a Resource Efficient Europe (2020 objectives):• Phase out environmentally harmful subsidies

and substantially increase the share of environmental taxes

• Food chain resource inputs should be cut by 20 %

• Disposal of edible food waste should be halved• Market and policy incentives that reward

business investments in efficiency are in place• Economic growth and wellbeing is decoupled

from resource inputs

Key general objectives

7. Sustainable Production and Consumption

Key Objective: phasing out of harmful subsidies and secure a sustainable fishing and aquaculture sector.

4.3 billion Euro over the 2007–2013 period.

Main Impact: Construction and export of overcapacity to third countries – have now officially been removed.

European Fisheries Fund (EFF)

8. Biodiversity

EU Biodiversity Strategy to 2020:• Achieve a significant and measurable

improvement in the status of species and habitats covered by EU.

• Better protection/restoration of ecosystems and their services and greater use of green infrastructure.

• More sustainable agriculture and forestry.• Better management of EU fish stocks.• Tighter controls of invasive alien species.• Greater EU contribution to averting global

biodiversity loss.

Key general objectives

8. Biodiversity

EU network of area of high biodiversity value.

Payments for Natura 2000 management are provided for farmers and land owners that operate within sites in order to maintain the biodiversity and the good ecological status in these sites/areas.

Policy Examples: Payments for Ecosystem Services - Natura 2000 Netwok

9. Conclusion• GE policies: From objectives and targets

to EU policy instruments and specific country-based initiatives.

• Different level of alignment with EU Policies across member states, largely depending on financial resource availability and R&D capacity.

• Upcoming: Launch of Horizon 2020 financing instrument in 2014 Will combine all EU innovation funding streams.

Thank you!

For more information you can find me at:

niccolo.lombardi@ke-

srl.com