10 resource use will also reduce the negative environmental impacts associated with using those resources. In the future, work on the distinguishing between different types and forms of eco-innovation will be intensified. This report offers a general framing of both the problems and the objectives; it begins by analysing current unsustainable trends and ends with a vision of a resource-efficient Europe. This vision reflects what resource efficiency means to us, it also depicts the scope the ecoinnovation challenge. As we will show, eco-innovation is already occurring in countries, sectors, and markets across the EU, but not to the degree necessary. The EIO therefore aims to demonstrate existing solutions and to explore the untapped, often unrealized, eco-innovative potential of new solutions. In this context, this report aims to provide answers to the following key questions: ● What are the current eco-innovation -- and eco-innovation relevant -- trends? ● What types of good practice can be seen in different EU Member States? ● What are the drivers and barriers of eco-innovation in countries, sectors and companies? ● What policy approaches are most effective for promoting eco-innovation? Box 1.3 | Resource efficiency, productivity and intensity: distinguishing the terms Resource efficiency means using less resources to achieve the same or improved output (resource input/output). It is an input-output measure of technical ability to produce “more from less”. Resource productivity has a component of economic value: it refers to the economic gains achieved through resource efficiency (for example GDP/DMC). In this way it indicates the economic effectiveness of natural resource use. This report often refers to material productivity. At the company level, material productivity refers to the amount of economic value generated per unit of material input. In other words, reducing material cost or adding more value to the production output by increasing efficiency in the way material resources are delivered processed and handled. On the scale of economies, material productivity is an indicator calculated as GDP per material consumption. In this case, material productivity refers to domestic material consumption whereas resource productivity refers to total resource consumption (see also Box 2.1 describing material flow indicators). Resource intensity indicators are the inverse of productivity indicators. They are often used to discuss energy and emissions. This report, for instance, considers GHG emissions intensity (measured as CO2e/GDP) in the calculation of the Eco-Innovation Scoreboard (section 3.1).
2 | Resource efficiency: Key trends and targets eco-innovation observatory Resource efficiency has increased in Europe. However, efficiency gains have been offset by increases in consumption, both in Europe as well as in other continents. This chapter asks what is the dimension of the resource-efficiency improvements required to meet the eco-innovation challenge? It overviews concrete targets for the EU, which are used in this report to depict the scope of the challenge. 2.1 | Tracking trends: resource use and material productivity The global picture: rapid growth in material use Global material extraction and consumption has grown significantly over the past few decades, from around 40 billion tonnes in 1980 to around 60 billion tonnes in 2007 (SERI 2010). However, growth rates were unevenly distributed among the main material categories. The use of metal ores showed the highest increase (more than 115%), indicating the continued importance of this material category for industrial development, while industrial and construction minerals grew by 75% and fossil fuels by 54%. Increases in biomass extraction amounted to 46%, however, the share of renewable materials in total material extraction is declining on the global level (from 39% in 1980 to 35% in 2007). Model calculations illustrate that in a “business-as-usual” scenario, i.e. a scenario without material efficiency policy intervention, the global annual use of primary materials could be as high as 100 billion tonnes in the year 2030. This scenario assumes a stagnation of current rates of material recycling and re-use, continued high levels of per capita material consumption in industrialised countries and considerable growth of material consumption in emerging and developing countries, aspiring to the same material welfare as people in the developed countries (Lutz and Giljum 2009). Annual Report 2010 Global material consumption has grown from around 40 billion tonnes in 1980 to around 60 billion tonnes in 2007. 11