Keeping the EU eco-competitive
Finding finance for climate change adaptation
Benefits to integrating climate change into air quality policy
Valuing nature protects biodiversity and reaps financial rewards
Crop residues provide valuable protection for soil
Ecotoxicity studies of nanomaterials urgently needed

Keeping the EU eco-competitive
A new EC-commissioned study makes ten key policy recommendations for improving Europe’s competitive position within the eco-industries. As well as harmonising regulation and standards across Europe, the report recommends providing funding and skills development schemes specifically for the sector.

The eco-industries, whose core sectors include air pollution control, waste treatment, renewable energy and recycling, among others, are a crucial part of the EU’s action and development plan under the Lisbon agenda for growth and jobs. The report1 identifies current areas of concern for the eco-industries in Europe and provides policy recommendations based on its findings.

According to the study, around 3.4 million people in the EU were employed in the eco-industries in 2008. The industry currently turns over more than €300 billion a year and, on average, its productivity is growing faster than the manufacturing industry. However, with the notable exception of renewable energy, it is less profitable than the manufacturing industry.

For specific subsectors, including recycling, water supply and renewable energy, the EU is in a world leading position. However, it lags behind in other areas, such as hybrid cars and biofuels. Although the EU has been an early adopter of environmental policies and recommendations, it is beginning to be challenged by rapidly developing countries like China, which are finding success in high-tech subsectors such as solar power.

The importance of creating an attractive climate for investors is highlighted in the report and policy makers have remained committed to environmental goals, despite the global financial crisis. Other challenges for the eco-industries include obstacles to increasing the transfer of technology to end-users, and between companies and countries. A shortage of skills also risks causing a slowdown in growth and productivity in some sectors within the eco-industries. In addition, lack of uniform implementation of environmental directives, standards and certification procedures currently makes it unnecessarily expensive to do business across Europe.

The report’s ten key policy recommendations are as follows:

Improve the statistical observation of the EU eco-industry.
Deepen the Sustainable Consumption and Production and the Sustainable Industrial Policy.
Improve the functioning of the internal market for the EU eco-industry by harmonising the implementation of directives, standards and certification procedures.
Introduce EU-wide functional performance criteria where possible and technical standards where needed.
Promote environmental skills development and move towards a better integrated internal labour market.
Reduce asymmetric information between the eco-industry and its clients and suppliers.
Promote eco-innovation and R&D.
Provide financial support schemes to support the eco-industry’s R&D and innovations that are strategic for the future, yet that cannot be funded by corporate funding due to the financial crisis.
Harmonise and promote green procurement.

Promote open markets at a global scale and the actions that help to create a level playing field.
1.     The report was produced as part of the ‘Study on the Competitiveness of the EU eco-industry’ commissioned by the European Commission Directorate General for Enterprise and Industry, within the context of the framework contract on Sector Competitiveness Studies (ENTR/06/054).
Source: IDEA Consult, ECORYS report. (2009). Study on the competitiveness of the EU eco-industry. Available to download from: http://ec.europa.eu/environment/enveco/jobs/index.htm#_Toc240786985

Contact: valentijn.bilsen@ideaconsult.be

Theme(s): Sustainable consumption and production, Sustainable development and policy assessment, Environmental Technologies

Finding finance for climate change adaptation

Additional funding mechanisms are required to finance adaptation to climate change in developing countries, according to a new study. The study predicts how relationships between costs associated with adapting to and mitigating against climate change, and costs associated with damages caused by climate change, will progress over the next century.

Even if policy measures designed to mitigate climate change successfully reduce global emissions and limit global temperature rises, damages caused by climate change – including sea level rise and extreme weather events – will still have an important impact and the global community will have to pay the cost of these damages. Therefore, in addition to mitigation measures aimed at reducing emissions, governments must consider how to design policies that, through adaptation to the changing climate, will reduce the damage caused by emissions. So far, few studies have tried to understand the balance between these different costs.

The Adaptation Fund, established under the Kyoto Protocol of the UN Climate Change Convention, currently finances climate change adaptation projects in developing countries via a 2 per cent levy on proceeds from the Clean Development Mechanism (CDM), which enables countries to earn carbon credits through projects that reduce carbon emissions. In the new study, conducted under the EU ADAM project1, Dutch researchers adapted existing models to gauge whether the current method of finance is sufficient and to better understand the relationships between the different costs involved.

According to the study, adaptation measures will be crucial to reducing the costs caused by damages as a result of climate change, particularly in developing countries where the impact of climate change is expected to be greater. The authors estimate that roughly US$4 in damages could be saved by every $1 invested in adaptation.

Depending on the emissions reduction target (2, 2.5 or 3°C), the global cost of adaptation is predicted to rise from $10 billion in 2010 to between $230-275 billion in 2050. Much of the burden will fall on developing countries, but the authors’ model predicts that the small amount of funding for adaptation generated by the current 2 per cent levy will do little to meet their needs, even if the levy were to be extended to emissions trading in addition to CDM proceeds. By around 2030, only a third of the cost could be met under a 2°C rise scenario, and far less for less optimistic emissions targets.

The authors stress that the results of the study should be interpreted with care – the models used inevitably introduce a degree of uncertainty due to the many assumptions made about damage costs. However, there is a very important conclusion: the currently discussed mechanisms will not generate enough funding to finance adaptation in the developing world, even under tough targets.

1.     ADAM (Adaptation and Mitigation Strategies: Supporting European climate policy) was supported by the European Commission under the Sixth Framework Programme. See: www.adamproject.eu
Source: Hof, A.F. de Bruin, K.C., Dellink, R.B. et al. (2009). The effect of different mitigation strategies on international financing of adaption. Environmental Science and Policy. 12: 832-843.

Contact: andries.hof@pbl.nl

Theme(s): Climate change and energy, Sustainable development and policy analysis

Benefits to integrating climate change into air quality policy
New research suggests potential benefits in integrating air quality and climate change policy. It predicts that accounting for the climate impact of certain air pollutants in the EU, USA and China could complement policies designed to reduce the air quality impacts of these pollutants.

The study analysed how policies addressing air pollution and climate change interact. A focus was on how measures in one policy area affect emissions and environmental impacts related to the other policy area and quantified ancillary benefits.

The study predicted the effects of three scenarios of cost-effective pollutant reduction:

A scenario driven by concern for climate impacts
A scenario targeting the effects on ground level ozone
A scenario targeting the impacts of suspended particulate matter (PM)
Scenarios were applied to the EU, USA and China and covered a range of pollutants: primary emissions of PM2.5, sulfur dioxide, nitrogen oxides, methane, VOC and carbon monoxide. In all scenarios the starting point for the pollution reductions was the level of emissions achieved through current legislation. For Europe this largely implies the application of existing EU and national legislation on stationary and mobile sources. Reductions were attained mainly by end-of-pipe measures, such as catalytic converters and other cleaning technologies, and retro-fitted measures, such as replacing household stoves. Fuel switching, for example, from oil to gas, was not considered.

The results indicated that the cost-effective reductions in the climate-focused scenario were similar to the air quality-focused scenarios for certain pollutants such as PM2.5, VOC, carbon monoxide and methane. For example, in the EU an additional €25 billion per year expenditure would reduce VOC by approximately 1.5 million tonnes for both the climate-focused scenario and the ozone-focused scenario. The same expenditure would reduce primary PM2.5 by about 300,000 tonnes for the climate-focused scenario and the PM focused-scenario. The response curves are similar to those of Europe and the USA as well as in China. It is noticeable that costs per tonne reduced are generally lower in these regions, and in particular in China.

At all levels of expenditure the climate-focused scenario has only a minor importance for sulfur dioxide and low reductions for nitrogen oxides, due to their small or negative (cooling) impact on the climate. The ozone-focused scenario produced large reductions in nitrogen oxides and the PM-focused scenario produced large reductions in nitrogen oxides and sulfur dioxide.

The results suggest potential co-benefits in integrating climate change policy and air quality legislation for certain pollutants in all studied regions, as reductions may be generating large net benefits from both perspectives. Potentially this could also increase the political acceptance of reductions and allow more ambitious environmental targets to be set. The form of such ‘integrated policy’ has several options, for example, formally recognising pollutants as climate change agents and involving them in emissions trading schemes. The study also indicates the potential for international co-operation throughout the northern hemisphere on air quality issues, as this would also help mitigate global climate change.

1.     See: http://ec.europa.eu/environment/air/pollutants/ceilings.htm
2.     See: http://ec.europa.eu/environment/archives/air/cafe/index.htm
Source: Rypdal, K., Rive, N., Bernsten, T. et al. (2009). Climate and air quality-driven scenarios of ozone and aerosol precursor abatement. Environmental Science and Policy. 12:855-869.

Contact: nathan.rive@cicero.uio.no

Theme(s): Air pollution, Climate change and energy

Valuing nature protects biodiversity and reaps financial rewards
A new global study1 on the economics of ecosystem services and biodiversity loss suggests that governments can achieve more resilient economies and receive higher rates of return on their public investment strategies when they recognise and target the value of ecosystem services.

A new report highlights the economic consequences of not valuing ecosystem services and biodiversity, whose benefits are frequently economically invisible in public policy and decision making. The world is facing a biodiversity crisis: forests, soils, wetlands, coral reefs and ocean fisheries are being depleted at significant rates, and these assets are being lost without a true understanding or reflection of their value in public policies, or in the accounts of society. Furthermore awareness needs to be raised.

Greater investments are needed to maintain and restore ecosystems and to use these resources more sustainably. Efficient use of scarce resources introduces the need to move away from an unsustainable, high-consumption, high-production way of living towards a sustainable economy. Public policies that include the worth of natural capital can return significant benefits. For example, it cost about US$1 million to plant and protect around 12,000 hectares of mangroves in Vietnam, but this has saved well over US$7 million on annual dyke maintenance and therefore planting mangroves is an alternative action for preventing coastal erosion and losses due to natural catastrophes.

The report highlights four priority areas that need to be urgently addressed:

To halt deforestation and forest degradation. Policies based on ‘green carbon’ (carbon stored in plants and soils of terrestrial ecosystems including grasslands, forests, wetlands and pasture), such as REDD+ (Reducing Emissions from Deforestation and Degradation, as well as carbon stock enhancement through restoring forest cover and managing forests sustainably), are cost-effective methods of mitigating the impacts of climate change, in addition to protecting ecological services and goods.

To protect coral reefs from global warming and ocean acidification. Over 20 per cent of coral reefs are seriously degraded, affecting ecosystem services such as fishing, tourism and coastal protection.

To rescue global fisheries from overexploitation and restore stocks. Commercially exploited fish populations have fallen by over 90 per cent in some parts of the world with an estimated loss of benefits of US$ 50 billion per annum, which is over half the current annual value of landed catch.

To recognise the link between degradation/loss of natural systems and rural poverty and ensure policies which support the maintenance and provision of the services generated by ecosystems for local people.

Long-term management of natural capital needs better understanding of biodiversity and ecosystem services and the ability to measure them. The researchers analysed existing approaches and recommend the use of science-based indicators to monitor progress and to warn of possible ‘tipping points’ or sudden ecosystem collapse.

The report makes the following recommendations for policy makers:

Reward benefits through support actions, such as payments for ecosystem services (PES) schemes at local levels to REDD and IPES schemes on a global scale and facilitation of markets.
Remove environmentally harmful subsidies; global subsidies in key sectors cost about US$1 trillion a year.
Address losses through regulation and pricing, such as the ‘polluter pays principle’, and full recovery of costs.
Adding value through protected areas by increasing their coverage both in land and marine areas and provide funding that will maintain and restore biodiversity and enhance ecosystem services at local, national and global levels.
Investing in ecological infrastructure as it is often cheaper to maintain the capacity of nature than to restore already overexploited and damaged ecosystems.
Source: TEEB. (2009) The Economics of Ecosystems and Biodiversity for National and International Policy Makers. Summary: Responding to the Value of Nature. The report can be downloaded from www.teebweb.org/LinkClick.aspx?fileticket=I4Y2nqqIiCg%3d&tabid=924&language=en-US

Contact: pavan@unep-wcmc.org or pavan.sukhdev@unep-teeb.org

Theme(s): Biodiversity, Environmental Economics, Sustainable development and policy assessment

Crop residues provide valuable protection for soil
Removing wheat and sorghum crop residue after harvest, such as stalks, stubble and leaves, may cause more harm than good according to new research. Results indicate that removing residue can increase nutrient and sediment levels in water runoff, and decrease organic carbon stored in the soil.

Crop residue left after harvest performs several ecosystem services. In particular it protects the soil from rain and runoff. However, removing it for livestock feed and, more recently, bio-ethanol may reduce these services. This raises questions about using these residues for biofuel production. Although it does not specifically address the use of residues, the EU has stipulated that biofuels must meet agreed sustainability criteria to count towards the targets of the Renewables Directive1.

The research assessed the impacts of removing wheat and sorghum crop residue from farmland in western Kansas, USA. The soils varied in their till-management in four ways: untilled wheat, freshly-tilled wheat, spring-tilled sorghum and freshly-tilled sorghum. The study varied the amount of residue removed from between 0 to 100 per cent and simulated heavy, short rainstorm on the land.

Compared with plots where no residue was removed, complete removal increased water runoff dramatically in the tilled plots: in the freshly tilled wheat runoff increased by 61 per cent, in the freshly tilled sorghum plot by 94 per cent and in the spring-tilled sorghum plot by 225 per cent. Increases in run-off from the untilled wheat plot were not as significant.

Residue removal increased soil erosion and therefore the loss of sediment (rock fragments) contained in the soil in all types of crop and tillage. Complete removal doubled the sediment loss to 14 tonnes per hectare for tilled wheat and increased it from 0.9 to 7.2 tonnes per hectare for untilled wheat. As a result, organic carbon in the soil that is bound to the sediment was also lost causing significant soil degradation, since soil organic matter is a source of nutrients and plays a fundamental role in the global carbon cycle. Besides the loss of fertile lands, sediments can cause problems when deposited in downstream lakes and rivers or on roads or clogging drainage systems, for example.

Downstream water quality also worsened when nutrients, such as nitrogen and phosphorus, escaped from soil in surface runoff. Removal rates of above 75 per cent of residue increased the losses of total nitrogen and of total phosphorus threefold in freshly tilled plots and eightfold in untilled plots.

The researchers recommend that no residue be removed from tilled soils, especially if they are on sloping lands (6 per cent slope) as slopes increase water runoff. Untilled wheat plots tend to have an advantage over freshly tilled plots, but excessive removal of residue can undo the erosion protection that untilled management provides. The results suggest that 25 per cent may be the maximum amount of residue that can be removed from untilled wheat soils before they suffer similar losses to tilled soils.

1.     See http://europa.eu/legislation_summaries/energy/renewable_energy/en0009_en.htm
Source: Blanco-Canqui, H., Stephenson, R.J., Nelson, N.O. & Presley, D.R. (2009). Wheat and Sorghum Residue Removal for Expanded Uses Increases Sediment and Nutrient Loss in Runoff. Journal of Environmental Quality. 38:2365-2372.

Contact: hblanco@ksu.edu

Theme(s): Agriculture, Soil

Ecotoxicity studies of nanomaterials urgently needed
A new study by Swiss researchers has attempted to predict nanomaterial concentrations in the environment. However, the researchers say more data on environmental toxicity are needed before we can make accurate assessments of potential environmental risks from nanomaterials.

Studies based on real measurements of nanomaterials in the environment are currently almost non-existent, despite the growing use of nanomaterials in commercial products, such as cosmetics, textiles and paints. Therefore, simulations that predict how nanomaterials may be released into the environment, and in what quantities, can be helpful in estimating risks and providing guidance for legislation on the use and disposal of nanomaterials.

The current study focused on modelling environmental concentrations of five types of nanomaterials used in commercial products in the EU, the US and Switzerland: nano-titanium dioxide, nano-zinc oxide, nanosilver, carbon nanotubes and fullerenes. The types of products studied included plastics, textiles, cosmetics, food supplements, paints and consumer electronics.

Environmental concentrations were predicted using a newly developed model. Product life-cycle was divided into various phases from manufacture to waste disposal or recycling, and environmental concentrations were modelled for water, air, soil sediment and groundwater. Where necessary, the researchers accounted for different product life cycles in different countries. In the EU and US, for instance, sewage sludge is spread on soils as fertiliser, but in Switzerland it is incinerated.

In Europe and the US, sludge treated soils and sediments were predicted to hold the highest concentrations of nanomaterials. In Switzerland, effluent from sewage treatment plants and sediment contained the highest concentrations. Concentrations in air were generally predicted to be low.

According to the study, the most common routes by which nanomaterials are released into the environment depend on the type of product in which the nanomaterial is used. Carbon nanotubes, for example, tend to be transferred from manufacturing to waste incineration plants to landfill sites, whereas nano-zinc oxide tends to end up in soils via the spreading of sewage sludge. Titanium dioxide was predicted to accumulate in the highest concentrations overall; nano-titanium dioxide concentrations in sludge treated soils are predicted to have risen to 0.5 mg per kg by 2012, up from 0.1 mg per kg in 2008.

The environmental risks posed by these concentrations could not be accurately estimated as there is a lack of toxicity data. The researchers say more data are urgently needed, particularly for nano-forms of silver, titanium dioxide and zinc oxide, which may pose a risk to aquatic life.

The results agree well with the limited data that are available from studies providing actual measurements of environmental concentrations. However, the researchers stress the need to eliminate uncertainties in their model by improving current knowledge about the volumes of nanomaterials used in different products and about the specific types of nanomaterials studied. For instance, nanotubes and fullerenes vary in their properties according to their specific forms. They also suggest building regional databases containing region-specific product life-cycle information.

Source: Gottschalk, F. Sonderer, T., Scholz, R.W. and Nowack, B. (2009). Modeled Environmental Concentrations of Engineering Nanoparticles (TiO2, ZnO, Ag, CNT, Fullerenes) for Different Regions. Environmental Science & Technology. 43: 9216-9222.

Contact: nowack@empa.ch

Theme(s): Chemicals, Risk assessment