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Chapter 9: Environment and the Economy

Strategies for a Resource-efficient and

Low-carbon Europe

The Europe 2020 Strategy

3

reaffirms a collective

determination to shift towards a resource-efficient and

low-carbon economy and the European Commission

has committed to using a range of financing and

economic instruments to achieve this objective. These

include mobilising EU financial instruments; enhancing

the framework for the use of market-based instruments

(e.g. emissions trading, revision of energy taxation,

state aid framework, encouraging wider use of green

public procurement); and promoting a comprehensive

programme of resource efficiency leading to changes in

consumption and production patterns.

In 2011, the EU Commission published what was then,

and still is, considered one of its most significant policy

statements for many years. This visionary document,

A Roadmap to a Resource Efficient Europe

,

4

articulates

ambitions for European society, economy and environment

that seek to address the challenges of environmental

damage, resource depletion and climate change.

A 2014 review of progress under

5

the roadmap concluded,

inter alia, that the majority of the actions announced in

the roadmap have been launched; however, “the full

impacts of the actions launched under the roadmap

are yet to unfold.” The progress report added that the

3

www.ec.europa.eu/europe2020/index_en.htm

4

www.ec.europa.eu/environment/resource_efficiency/ about/roadmap/index_en.htm

5

www.ec.europa.eu/environment/circular-economy/pdf/Progress-report- roadmap.pdf

2020 milestones and the overall objective of decoupling

economic growth from resource use and its environmental

impacts are not likely to be fully achieved unless efforts are

stepped up. As a means to measure progress, a Resource

Efficiency Scoreboard has been published by Eurostat

since 2013, with the caveat that there is a significant

time-lag for many of the statistics around material flows

in the economy. The midterm review stated that “action

on the side of national, regional and local governments

is important, since in many cases the most effective

policy instruments to promote efficient resource use and

implement sustainability in practice are in their hands –

for instance in the areas of waste and water management,

urban planning, or public procurement.”

Harmful Environmental Subsidies

Elimination of environmentally harmful subsidies

and taxation systems will come into stronger focus

internationally and in national economic and finance

policy in the coming years.

Internationally, through the Organisation for Economic

Co‑operation and Development (OECD), the UN, the

EU and the Group of Twenty (G20), the subject of

environmentally harmful subsidies has been put on the

agenda for discussion and resolution (Oosterhuis and ten

Brink, 2014). Subsidies do lead to lock-in of unsustainable

technologies and infrastructure, as well as poor decision

making. The EU 7th EAP and

A Roadmap to a Resource

Efficient Europe

call for urgent attention to be applied to

the phasing-out of environmentally harmful subsidies at

the national level. The roadmap estimates that the scale

of subsidies with potential negative impacts on the

Figure 9.4

Global Goals for Sustainable Development (Source: UN)