Commission report highlights barriers to environmental technologies research
The full exploitation of innovative environmental technologies and incentives to research and development in this field are being hindered by market and institutional barriers, according to a new report published by the European Commission. The EU eco-industry is a major driver of economic growth in Europe. It has a turnover of 180 billion euro per year and has created more than half a million new jobs in the last five years. It accounts for roughly one third of the global market for environmental technologies. In addition, environmental technologies can help to decouple economic growth from environmental impact and reduce the cost of environmental protection, freeing up resources for use elsewhere. The report warns, however, that 'much of the potential of environmental technologies is unrealised because of market and institutional barriers that hinder their use.' In particular, the report highlights systematic under-investment in innovative environmental technologies caused by market prices which do not reflect the full value of their environmental impact. It concludes that action to remove market obstacles and get prices right is 'crucial if we are to exploit the potential of environmental technologies to the full, and to provide incentives for further research and development in this field.' The 'Environmental technology for sustainable development' report was produced following the June 2001 Gothenburg European Council's request for a document assessing how environmental technology can promote growth and employment. The Commission now intends to develop an action plan to address barriers to the diffusion of environmental technologies and promote their development and use. The plan will also assess promising technologies which could be used to address key environmental problems. Environment Commissioner Margot Wallström said: 'We will work together with stakeholders from industry, the research community, NGOs and governments, both within the EU and candidate countries. Together, we can identify the barriers holding back investment in environmental technology, and measures to address them. Supporting innovation, development and use of environmental technologies will provide a boost to our economy and our environment.'