Environment

Eco-efficient economy

We are currently experiencing several global crises: the financial and economic crisis, rapid climate change and accelerating loss of biodiversity and imbalance in the world’s ecosystems. Crisis actually signifies a time for decision, a turning point or a decisive moment. The turning point we face signifies a unique opportunity to meet the economic and environmental challenges in a coherent manner.

A large part of the solution entails switching the European economy to become an eco-efficient economy. Greater competitiveness and growth are to be achieved while creating a sustainable energy supply, making efficient use of resources and meeting our climate targets and environmental objectives. The European economy has become more efficient – ecologically and economically!

The potential of the green economy
The strong growth already experienced by the environmental technology industry in recent years points to the potential of the green economy. The EU switching to an eco-efficient economy before the rest of the world can yield significant competitive advantages for us in Europe. The global demand for natural resources and its impact on the environment will continue with present-day global patterns of growth.  This will probably lead to increased market prices for raw materials, increased need for solutions for more efficient use of energy and natural resources and generally increased demand for good environmental performance in all sectors.

Need for new products
The need for new products, services and system solutions that contribute to meeting these global challenges therefore represents an exceptional opportunity for greater competitiveness, prosperity and new jobs. Renewable energy, environmental technology, energy efficiency, spatial planning and construction, sustainable transport and vehicles, tourism and agriculture are examples of areas in which the switch to an eco-efficient economy is needed.  Small and medium-sized enterprises play an important role in this switch and in creating new jobs.

Efficient energy systems
Many solutions are already available on the market, and a large part of the business community is increasingly taking account of the environment and climate change. There is, however, large untapped potential for cost and environmental savings. A good example is efficient energy systems that involve making use of waste heat, the potential of combined heat and power and other efficient solutions.

An eco-efficient economy can create more new jobs and replace some of the jobs being lost today in European industry. It could also contribute to increased local production, for example of renewable energy. More efficient use of both energy and natural resources contributes to greater prosperity in the EU, with a better balance of trade and reduced vulnerability to rising oil and raw material prices.

International climate agreement
With a climate agreement in Copenhagen in December that leads to the pricing of carbon dioxide emissions, forward-looking eco-efficient economies will experience rising demand for and increased exports of their products and services. This would also promote increased innovation, which is of crucial significance to strong competitiveness. In addition, an international climate agreement is a first important stage towards bringing about equal conditions for companies in global markets where companies that take responsibility for the environment and climate are favoured rather than disadvantaged.

Need for agreement betweeen different policy areas
To switch to an eco-efficient economy in Europe there is a need for different policy areas such as climate, environmental, energy, industry, research and trade policy to concur and meet the common challenges faced by Europe collectively. Environmental taxes and other economic instruments are of key significance in enabling future targets in the area of climate and energy to be met in a way that is cost-effective for society. Greenhouse gas emissions are a global environmental problem and represent perhaps the greatest market failure in history. The goal for climate policy should for economic reasons be to aim for a global price for greenhouse emissions that should be successively raised to achieve the emission reductions required to attain the targets that are set.

Sweden is one of the European countries with experience of long-term climate efforts that have proved successful in combining the switching of energy systems and reduced greenhouse gas emissions with economic growth. We have favourable experience of economic instruments to encourage switching and efficiency improvements in industry. Coordination between different policy areas is also highly developed in international terms. Sweden is therefore well equipped to drive the switch to an eco-efficient economy in the run-up to the Presidency.
 

• Informal meeting of Environment Ministers