memorandum for a green economy in germany- june 2012

8/22/2019 Memorandum for a Green Economy in Germany- June 2012

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Memoadum fo aGee Ecoomy

A joi iiiaive of he BDI ad BMU


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IMprInt

Published by: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)Division ZG III 2 11055 Berlin GermanyEmail: [email protected] Website: www.bmu.de/english

The Federation of German Industries (BDI)

Breite Str. 29 10178 Berlin GermanyEmail: [email protected] Website: www.bdi.eu

Edited by: BMU: Peter Franz, Dr. Florian Kammerer, Division ZG III 2BDI: Franz-Josef von Kempis, Climate and Sustainable Development

Design: design_idee, bro_fr_gestaltung, ErfurtPrinted by: Silber Druck oHG, Niestetal

Photo credits: Cover: jarts/photocase.comp. 5 (left): CDU/CSU-Bundestagsfraktion/Christian Doppelgatz

p. 5 (right): BDI/Christian KruppaDate: Juni 2012First Print: 1,000 copies


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Memoadum fo a

Gee EcoomyA joint initiative of the Federation of German Industry (BDI) and the Federal Ministryfor the Environment, Nature Conservation and Nuclear Safety (BMU)

on the occasion of

the Rio +20 United Nations Conference on Sustainable Development in Rio de Janeiro

(2012)


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Foewod

4

Climate change, resource scarcity, biodiver-

sity loss and a growing world population will

compel us to establish even stronger links be-

tween the economy and ecology in the con-

text of sustainable development. To achieve

this, we need growth and innovation both

in industrialised countries and in developing

and emerging economies.

Germany has already made great progress

in greening the economy. Today, we need

far fewer raw materials and less energy, and

emit fewer pollutants than ten years ago

for the same yield. What is more: the green

economy provides enormous market op-portunities. Environmental and efficiency

technologies are drivers of growth along

the entire industrial value chain. They profit

from being rooted in traditional branches

of industry while at the same time advan-

cing the modernisation of these industries,

for example mechanical engineering and

vehicle construction, the chemical and theelectrical industry. Energy and raw material

efficiency are becoming increasingly import-

ant as competitive factors in these sectors.

The global market volume of environmental

and efficiency technologies already totals

around 2 trillion euros. According to recent

estimates made for the new Greentech Atlas

3.0, this volume will more than double in the

next ten years.


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5

Policymakers and industry must work together to further strengthen the

innovative capacity of German businesses in these key markets of the future,

and to ensure that German industry is able to live up to its responsibility invalue creation. The German government has laid decisive foundations for

the ongoing process of greening our economy. Maintaining industrys global

competitiveness with a level playing field will always be a focus in this,

allowing Germany to combine growth, innovation and sustainability in its

social market economy. This is the approach the Federal Environment Min-

istry and the Federation of German Industries are promoting in their joint

memorandum on the occasion of the Rio 2012 conference.

Peter Altmaier

Federal Minister for the

Environment, Nature Conservation

and Nuclear Safety

Dr. Markus Kerber

CEO and Member of

the Board of the Federation

of German Industries (BDI)


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We suo he

guidig icile

of susaiable

develome!

In June 2012, 20 years later, the United Na-

tions is once again holding a conference

in Rio de Janeiro aimed at confirming and

renewing commitment to sustainable devel-

opment.

With this memorandum, we, the Federal

Ministry for the Environment, Nature Con-

servation and Nuclear Safety (BMU) and the

Federation of German Industry (BDI), affirm

our commitment to the principle of sustain-

able development as the basis to guide our

political and economic activity. We jointly

support the Green Economy theme of the

conference, which is integrated within theoverall theme of sustainable development,

and we affirm the need for intensified efforts

towards an environmentally sound economy.

Over the past 20 years, sustainability has

become an increasingly important guiding

principle for political and economic activ-

ities in Germany. Efforts toward sustainabilityentail finding a balance between economic,

ecological and social interests, as well as

resolving any related issues of interdepen-

dencies and conflicts of interests.

I.

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It is our joint conviction that the political and economic sectors play a key

role in efforts to bring about a society that produces few emissions, uses

resources efficiently and conserves natural assets. Sustainable economic

activity and innovation must be closely intertwined in any such efforts.

Germanys efforts toward sustainable development will help to safeguard its

long-term international competitiveness. We are convinced that there is no

alternative to a sustainable economy.

7

2 % Chemicals

8 %

Mechanicalengineering

15 %

17 %

(42 %)~EUR 806 bn

Electrical engineering

Automotive industry

Total market for environmental technology andresource efficiency

EUR 1,930 bn

Source: GreenTech made in Germany 3.0. Environmental Technology Atlas for Germany

tadiioal idusies shae of adiioal idusies i he oal makefo eviomeal ad esouce efciecy echologies (exce) i 2010


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A gee

ecoomy limis

ecological isks

ad seghes

comeiiveess!

We understand green economy to be a

concept that focuses on a positive connection

between a sustainable economy and the envi-

ronment, that shapes growth in environmen-

tally sound and sustainable ways and that

enhances social prosperity and well-being. In

economic decisions, taking suitable account

of ecological guidelines is an effective way

of countering global megatrends such as

climate change and loss of biodiversity.

II.

8

Gowh foecas fo he global make fo eviomeal ad esouceefciecy echologies i 2011, 2015 ad 2025 (EUr b, aveage aualchage 20112025 i ece)


2011 2015 2025

4,403

2,625

2,044 Germanys market share

Germany

Rest of world

~ 15 % ~ 15 % ~ 15 %

5.6 %

1,744 2,237 3,729

674

389

300


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A green economy limits ecological risks and uses economic opportunities.

The key efforts in achieving such an economy include:

Intensifying efforts to prevent harmful emissions and pollutant

discharges into all environmental media,

Reduction, recycling and environmentally sound disposal of waste,

and closing substance cycles to the greatest possible extent,

Further reducing the use of non-renewable resources,

Making an even more efficient use of energy, raw materials and

other natural resources,

Making continual progress in replacing the use of non-renewableresources with sustainably produced renewable resources,

In the long term, achieving an energy system that is based more

strongly on renewable energy sources, and

Conserving and restoring biological diversity, ecosystems and

ecosystem services.

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the goal is o

gee he

eie ecoomy,

ad ha goal

eses geaecoomic

oouiies!

The objective of greening the economy of-

fers great economic opportunities and holds

enormous economic potential. Efforts toward

that objective help secure competitiveness,

develop areas for new, sustainable growth

and take early account of economic scarcities

and costs. The financial and economic crisis

showed how important it is for growth to

be sustainably oriented. Together, we want

to prepare a basis for making full use of the

economic opportunities and potential of the

green economy.

Greening must extend to the entire

economy. Existing, established economic sec-tors play an integral role in this process. On

the one hand, by making use of environmen-

tal technology and emphasising resources

efficiency, existing industries enhance the

development of environmental technology

and resources efficiency. On the other hand,

environmentally oriented technologies tend

to drive modernisation in existing industries,especially by improving efficiency in the use

of energy, resources and materials. Efficiency

enhancements in processes and products,

along with the use of renewable resources,

reduce dependencies and ecological risks.

That is a particularly important aspect for

German industry, which is strongly resources-

dependent.

III.

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Greening thus presents especially great opportunities for the German

industry. In Germany, industry accounts for 22 percent of value creation and

employs some 5.7 million people. It owes much of its innovative power to its

own ongoing R&D expenditures, which account for nearly 90 percent of the

economys total R&D expenditures. With this innovative strength, German

industry is already contributing significantly to efforts to deal with current

megatrends.

A green economy needs primary industries and energy-intensive indus-

tries, since such industries are the main pillars of industrial production.

Therefore, it is vitally important to maintain existing value chains in

Germany and at international locations. Innovations on the level of primary

industries play an important role in the development of products that are

energy-efficient, resources-efficient and environmentally friendly. Without

such innovations, sustainable economic growth would be inconceivable.Consequently, and in view of growing sustainability requirements, there

is no place for arbitrarily classifying sectors and products into green and

non-green categories.

Germanys successful overall industrial value chain is a key basis for the

strength of Germanys lead markets for environmental technology and re-

sources efficiency. Both in Germany and globally, such markets have become

important economic factors, as the study GreenTech made in Germany,which was prepared under commission to the BMU, shows. In 2011, such

markets had a global volume of 2,044 billion euro. And they are forecast to

grow to 4,400 billion euro by 2025. That figure translates into an average

annual growth of 6.5 percent.

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We suo he

iciles of he

social make

ecoomy

hey suo usi ou effos o

move owad a

gee ecoomy!

Germanys social market economy has

proven to be a key to economic success and

social stability. The values on which the so-

cial market economy is founded, Germanys

industrial base and the innovative power of

German companies, have helped the German

economy to emerge largely unscathed from

the global economic and financial crisis.

The social market economy is a successful

model that provides an excellent framework

in Germany for sustainable development and

economic greening, since it links freedom,

responsibility, initiative and competition and

holds potential for positive development. Inthe social market economy, the state provides

a stable framework for the functioning of the

market and safeguards a balance in society

via participatory and social policies.

As a result, the social market economy

provides a solid basis for the viable further

development and growth of our social andeconomic order. The key aspects of such an

economy include a) a regulatory framework

that follows both social and ecological guide-

lines and b) trust in commonly recognised

rules. Consumers and companies alike need

clear, lastingly stable standards to which they

can model their actions.

IV.

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In light of the challenges ahead, it will become more and more necessary

to enhance co-ordination of various policy areas such as environmental

policy, economic policy and research policy, as well as foreign policy. The

basic guiding principles involved include:

Intensifying support for comprehensive ecological modernisation in

co-operation with industry

The focuses in this area must be on resources consumption, emissions

reductions, increased energy and raw-materials productivity, product design

and the design of suitable value chains.

Strengthening free competition and free market access

Competition plays a decisive role in sparking markets creativity in finding the

best, most efficient technological solutions. Reductions of trade barriers also play

an important role in this context. It is vitally important to make use of oppor-tunities for competitiveness, environmentally sound growth and employment.

Supporting innovation

The best support for innovation is found in the interplay of a clear, supply-side-

oriented political framework and stimulated demand (coordinated innovation

policy).

Making regulatory measures reliable Economic players require planning certainty especially in light of their

investment cycles.

Promoting a culture of participation

Progress toward sustainable development and a green economy can be

achieved only via constructive interaction between a clear political framework,

innovative companies and their highly qualified workforces and a well-

informed public. We want to promote such a culture of participation.

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We ca achieve

a gee ecoomy

hough a

coceed

effo ivolvigall foces i

sociey!

In many areas Germany has already made

considerable progress in its development

toward a green economy. With the trans-

formation of its energy system, its Closed

Substance Cycle Waste Management Act and

its Resource Efficiency Programme, Germany

has provided important impetus toward

such a development. Thanks to progressive

environmental policy, interacting with an in-

novative, efficient economic sector, Germany

has achieved excellent international competi-

tiveness in the market for environmental and

efficiency technologies.

A green economy needs coordinated actionof all forces in society. The challenges of sus-

tainability can be addressed effectively only

via combined, co-ordinated resources. Such

resources include companies, public institu-

tions, public-sector organisations and the

public at large.

The Federal Ministry for the Environment,Nature Conservation and Nuclear Safety

(BMU) plans to support the political frame-

work for a green economy. Efforts in this

area will include:

V.

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Creating a level playing field for companies, in the framework of

sustainable development,

Strengthening consideration of overall value chains,

Promoting acceptance of technology and openness to technology,

Improving technological co-operation and protection of intellectual

property rights (IPR),

Reducing barriers to trade,

Targeted assignment of support to research,

Broadening and enhancing training and available training resources in

the area of sustainability, and

Creating the necessary infrastructures for such efforts.

German industry plans to make use of the framework for a green economy

and will continue supporting the process of sustainable development with

innovative products and technologies. On the basis of its active research anddevelopment activities and its competitiveness, it will continue to make pro-

duction processes and products increasingly energy and resource efficient,

and replace or re-use non-sustainable raw materials.

In addition, German industry will assume the social responsibility it has in

the value chain at national and international level, and it will report in suit-

able ways on such responsibility.

In view of the inadequate and patchy international implementation of the

sustainability agenda adopted in Rio de Janeiro in 1992, German companies

are making an indispensable contribution to the relevant Capacity Develop-

ment Scheme by continually introducing and expanding environmentally

friendly production processes and socially compatible working conditions at

their international locations.

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VI.

We are convinced that a green economy

must include sustainable production and

consumption patterns that take full account

of megatrends, in the interest of achieving

prosperity and a high standard of living

throughout the world and for future gener-

ations. In the context of sustainable develop-

ment therefore, all stakeholders must model

their decisions and actions to a scope wider

than solely their own generation and their

own regions. This is the only way in which

we can protect our natural bases for life,

strengthen cohesion in society and promote

economic competitiveness.

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Gee echs shae of he global make volume i seleced idusies(i EUr billio) i 2010

1,930 1,930

42 %~1,500

20 %

~1,600

2 %

~2,600

6 %

~2,650

12 %

Green

technology

Electrical

engineering

Chemicals Automotive

engineering

Mechanical

engineering

Environmental

technology



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memorandum for a green economy in germany- june 2012

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