Environment and economy under spotlight

By Karen Carstens

Date: 15/07/04

ENVIRONMENT ministers meeting in the Netherlands this weekend will discuss ways for supporting innovations that are good for both the environment and the economy.

Products and processes benefiting the environment - ranging from more energy- efficient beer-brewing techniques to wind-power to digitizing patient data - will be in the spotlight at the three-day informal meeting which starts tomorrow (16 July) in Maastricht.

"The idea is to discuss a combination of environmentally sustainable ways to create economic opportunities," said a Dutch presidency spokesman.

The Dutch want to foster the same debate at other ministerial meetings, notably the Competitiveness Council. Ministers for industry, tax, transport, energy and research will also need to get on board the same bandwagon.

The Dutch environment ministry produced a report under the heading "clean, clever and competitive" to serve as a basis for discussion in Maastricht, with the aim of moving beyond scenarios that have traditionally pitted industry against environmental interests.

A five-person advisory committee that included Catherine Day, head of the European Commission's environment directorate, and a "high level expert group" were involved in drafting the 31-page document.

Frieder Meyer-Krahmer, director of the Fraunhofer-ISI in Karlsruhe, Germany, said the Netherlands was one of the most advanced member states when it comes to "recognizing the interconnections between innovation, research and the environment". But a "much stronger intermeshing" between these policy areas is needed in other member states, he added.

An economics professor and one of five experts on the high level group, he said such linkages could be fostered - as the Dutch suggest - without more regulation. Governments should instead support the procurement side more via purchasing fuel-efficient vehicles, or backing eco-labels and independent testing agencies that "grade" products for various criteria that are taken seriously by shoppers.

Economic benefits from this strategy need not be marginal, the Dutch presidency claims. Targeting eco-efficient innovation could give the EU comparative advantages over other regions, while also reducing Europe's external resource dependency and hence vulnerability to commodity price shocks.

Meyer-Krahmer said that with a proven track record in promoting synergies between the economy and environment, the Dutch are well-placed to reintegrate such green arguments into the EU's push for growth.

Eco-innovation could be the centrepiece of a revised Lisbon Agenda to make the EU the most competitive economy by 2010.

Preview of a meeting of European Environment Ministers in Maastricht on 16 July 2004. Ministers were due to discuss ways of supporting innovations that are beneficial for both the environment and the economy.