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This article proposes a policy framework for analysing corporate governance toward sustainable development. The aim is to set up a framework for analysing market evolution toward sustainability. In the first section, the paper briefly refers to recent theories about both market and government failures that express scepticism about the way that framework conditions for market actors are set. For this reason, multi-layered governance structures seem advantageous if new solutions are to be developed in policy areas concerned with long-term change and stepwise internalisation of externalities. The paper introduces the principle of regulated self-regulation. With regard to corporate actors| interests, it presents recent insights from theories about the knowledge-based firm, where the creation of new knowledge is based on the absorption of societal views. The result is greater scope for the endogenous internalisation of externalities, which leads to a variety of new and different corporate strategies. Because governance has to set incentives for quite a diverse set of actors in their daily operations, the paper finally discusses innovation-inducing regulation. In both areas, regulated self-regulation and innovation-inducing regulation, corporate and political governance co-evolve. The paper concludes that these co-evolutionary mechanisms may assume some of the stabilising and orientating functions previously exercised by framing activities of the state. In such a view, the government's main function is to facilitate learning processes, thus departing from the state's function as known from welfare economics.
This book presents important new research on applied eco-efficiency concepts throughout Europe. The aim of eco-efficiency is to achieve market-based measures of environmental protection, in order to enhance the prospects for sustainable development and achieve positive economic and ecological benefits. The distinguished authors discuss a number of themes surrounding eco-efficiency including the necessary conditions for technological dissemination and ecological modernization, and the role of government in enabling businesses and society to participate actively in this process. In particular, they highlight the application of existing European-based policies concerning material flows and energy. The authors also investigate some new concepts of sustainable development and provide a useful introduction to material flows analysis. In further chapters they study the emerging regulatory policies for eco-efficiency, and examine the issues of sustainable business and consumption strategies.
This paper examines the connection between globalisation, with its growth in world trade links, and certain ecological effects especially concerning "North-South" relations. Although world trade in the mid-nineties was significantly uncoupled from growth trends in the world economy, so that since then it has increased nearly three times faster than the global GDP, certain indicators of energy use and CO2 emissions have not developed proportionately to world trade; globalisation evidently does not lead to a situation where pressures on the environment are increasing to the same extent worldwide. This de-linking may, however, result in the kind of shifts that we examine here with reference to the material trade flows of the European Union. It will be shown that, in the course of globalisation, the countries of the EU have increasingly shifted environmental burdens on to the countries of the South, especially in the form of ecological rucksacks of imported raw materials, while at the same time reducing the pressure on their own domestic environment by extracting fewer material resources. Furthermore, goods whose production places intensive pressure on the environment (industrial emissions into the atmosphere and water, heavy metal emissions, etc.) have been increasingly imported from newly industrializing or developing countries. The greater covering of material requirements from foreign resources has served not so much the EU's internal consumption as its own production of export goods; this shows that the EU has an increasing share in the resource requirement of other economies. The paper concludes that it is absolutely necessary to consider the international dimension in any strategy for more productive use of resources in industrial countries. In the long term, the EU's resource use should also be reduced in absolute terms. This will also be necessary in order to reduce the pressure on the environment due to imports and exports.
Resource flows constitute the materials basis of the economy. At the same time, they carry and induce an environmental burden associated with resource extraction and the subsequent material flows and stocks, which finally end up as waste and emissions. A reduction of this material throughput and the related impacts would require a reduction of resource inputs. And breaking the link between resource consumption and economicgrowth would require an increase in resource productivity. Material flow analysis (MFA) can be used to quantify resource flows and indicate resource productivity. In this article, we study the available empirical evidence on the actual (de-)linkage of material resource use and economic growth. We compare resource use with respect to total material requirement (TMR) and direct material input (DMI) for 11 and 26 countries, respectively, and the European Union (EU-15). The dynamics of TMR, as well as of the main components are analysed in relation to economic growth in order to show whether there is a decoupling (relative or absolute) from GDP and a change of the metabolic structure in the course of economicdevelopment. DMI/cap so far only decoupled from GDP/cap in relative terms; that is, in most countries, it reached a rather constant level but - with the exception of Czech Republic - showed no absolute decline yet. TMR/cap was reduced in two high-income countries and one low-income country due to political influence. Changes in TMR were more influenced by hidden flows (HF) than by DMI. We analyse the dynamics of the structure and composition of TMR in the course of economic development. In general, the economic development of industrial countries was accompanied by a shift from domestic to foreign resource extraction. Different relations can be discovered for the share of biomass, fossil fuel resources, construction resources and metals and industrial minerals.
Bridging the data gap
(2004)
In this brochure, WISIONS focuses on the significance of innovative strategies in the field of sustainable tourism. WISIONS presents projects from Tanzania, Germany, Ecuador, Switzerland and Ghana that have been successfully implemented, with the intention of further promoting the particular approaches used by these projects. Using a key number of internationally accepted criteria, the main consideration for the selection of the projects was energy and resource efficiency, but social aspects such as the inclusion of local population were also of relevance. The assessment of the projects also included the consideration of regional factors acknowledging different needs and potentials.
Objective of this study is to support the development of a Thematic Strategy for Sustainable Use and Management of Resources through the provision of background information, in particular "an estimate of materials and waste streams in the Community, including imports and exports" (Article 8 a 6th EAP) using the method of material flow accounting. It further presents first ideas on how the resource use pattern of the EU can be assessed with regards to priority setting for possible policy measures.
By referring to the concept of Industrial Metabolism, resources are defined in a broad sense, embracing the source and sink function of the natural environment, i.e. the provision of raw materials and land, and the absorption of residual materials (waste and emissions). Environmental impacts are associated not only with the extraction, harvesting and catching of raw materials but also with the subsequent production, use and disposal of products and goods. It is the total of environmental impacts associated with the entire life cycle of raw materials which has to be considered.
Three generic "management rules" for the sustainable use and management of renewable and non-renewable natural resources are presented and discussed which have been formulated by several political institutions based on scientific literature:
1. The use of renewable resources should not exceed their renewal and/or regeneration rates.
2. The use of non-renewable resources should not exceed the rate at which substitutes are developed (should be limited to levels at which they can either be replaced by physically or functionally equivalent renewable resources or at which consumption can be offset by increasing the productivity of renewable or non-renewable resources).
3. Outputs of substances to the environment (pollution) should not exceed the assimilative capacity of environmental media ("absorption capacities").
Policies for Sustainable Use and economy-wide Management of natural Resources (SUMR) throughout the production and consumption system are faced with environmental and socio-economic requirements and regulatory constraints. Based on empirical findings of ongoing trends of resource use, decoupling from economic growth, and transregional problem shifting, the paper outlines a potentially sustainable biophysical basis for production and consumption in the EU. It discusses the main challenges for the major resource groups, describing the specific and the common tasks with regard to biomass, fossil fuels, metals, non-metallic minerals. Adopting a medical metaphor, it suggests that policies for SUMR should follow a dual approach reflecting the long-term need for a main cure of the socio-industrial metabolism in form of a "conditioning" towards a more mature, resource efficient, and renewables based constitution on the one hand, and a fine tuning of selected material flows (e.g. for optimized recycling and control of hazardous compounds) on the other hand. Both strategies are deemed complementary and necessary to reduce environmental impacts and increase the utility of material use. Action required is exemplified with regard to the three pillars of SUMR, i.e. improved orientation, information and incentives.
In a German case study, environmental input-output analyses (eIOA) combined with NAMEA-type tables were conducted for eleven selected environmental pressure variables. (NAMEA is an acronym for national accounts matrix including environmental accounts.) The analyses were conducted to derive the production-cycle-wide resource use and environmental impact potentials of final-demand product groups. The methodology permits identification and preliminary ranking of 10 product chains along which about two-thirds of German production-born environmental pressures arise. The most relevant product groups are construction work, food, motor vehicles, basic metals, and electricity. The ten product groups are characterized by both high resource requirements and high residual outputs (air emissions, wastes). The EU policy areas of integrated product policy and sustainable use of natural resources may address these product chains as a priority in order to identify and explore the possibility of reducing the environmental impacts from products throughout their life cycles and to decouple environmental impacts from resource use.
The book contains the proceedings of INFER annual conference 2004, organized at the Wuppertal Institute in Germany. Within the area of environmental economics, methodological issues now seem at stake. This is because recent methods and fields of economics, like institutional economics, competition (industrial) economics, and cognitive economics, should be applied and become more established within environmental economics. The different papers address this challenge via different case studies in areas such as agriculture, biodiversity, eco-taxes, subsidies, wind energy, environmental corruption, governance, contracts, international trade, human behavior, and many others.
The paper reviews the current knowledge on the use of biomass for non-food purposes, critically discusses its environmental sustainability implications, and describes the needs for further research, thus enabling a more balanced policy approach. The life-cylce wide impacts of the use of biomass for energy and material purposes derived from either direct crop harvest or residuals indicate that biomass based substitutes have a different, not always superior environmental performance than comparable fossil based products. Cascading use, i.e. when biomass is used for material products first and the energy content is recovered from the end-of-life products, tends to provide a higher environmental benefit than primary use as fuel. Due to limited global land resources, non-food biomass may only substitute for a certain share of non-renewables. If the demand for non-food biomass, especially fuel crops and its derivates, continues to grow this will inevitably lead to an expansion of global arable land at the expense of natural ecosystems such as savannas and tropical rain forests. Whereas the current aspirations and incentives to increase the use of non-food biomass are intended to counteract climate change and environmental degradation, they are thus bound to a high risk of problem shifting and may even lead to a global deterioration of the environment. Although the "balanced approach" of the European Union's biomass strategy may be deemed a good principle, the concrete targets and implementation measures in the Union and countries like Germany should be revisited. Likewise, countries like Brazil and Indonesia may revisit their strategies to use their natural resources for export or domestic purposes. Further research is needed to optimize the use of biomass within and between regions.
Integrated systems analysis
(2007)
This book considers corporate governance of sustainability from a co-evolutionary perspective. It explores the linkages between pro-active approaches at the corporate level, market-based incentives and environmental networks involving various actors. Relevant theory on corporate governance, competition, market failures and regulatory tools is also examined. The authors go on to present an assessment methodology suitable for empirical network analysis at the meso-level, and demonstrate its application using eight case studies. Based on these research results, Raimund Bleischwitz and his team draw important conclusions regarding policy analysis, sustainability assessment and the actors involved.
The enhanced use of biomass for the production of energy, fuels, and materials is one of the key strategies towards sustainable production and consumption. Various life cycle assessment (LCA) studies demonstrate the great potential of bio-based products to reduce both the consumption of non-renewable energy resources and greenhouse gas emissions. However, the production of biomass requires agricultural land and is often associated with adverse environmental effects such as eutrophication of surface and ground water. Decision making in favor of or against bio-based and conventional fossil product alternatives therefore often requires weighing of environmental impacts. In this article, we apply distance-to-target weighing methodology to aggregate LCA results obtained in four different environmental impact categories (i.e., non-renewable energy consumption, global warming potential, eutrophication potential, and acidification potential) to one environmental index. We include 45 bio- and fossil-based product pairs in our analysis, which we conduct for Germany. The resulting environmental indices for all product pairs analyzed range from -19.7 to +0.2 with negative values indicating overall environmental benefits of bio-based products. Except for three options of packaging materials made from wheat and cornstarch, all bio-based products (including energy, fuels, and materials) score better than their fossil counterparts. Comparing the median values for the three options of biomass utilization reveals that bio-energy (-1.2) and bio-materials (-1.0) offer significantly higher environmental benefits than bio-fuels (-0.3). The results of this study reflect, however, subjective value judgments due to the weighing methodology applied. Given the uncertainties and controversies associated not only with distance-to-target methodologies in particular but also with weighing approaches in general, the authors strongly recommend using weighing for decision finding only as a supplementary tool separately from standardized LCA methodology.
Global resource management : conflict potential and characteristics of a global governance regime
(2007)
The material stocks in the anthroposphere are growing faster than ever due to urbanization and growing per capita use. Owing to the growing potential insecurity of raw material supply the evaluation of resources gains increasing attention. Despite growing utilization of anthropogenic deposits, ‘urban mining’ has not yet sufficiently been supported by specific exploration methods. An exploration method for anthropogenic deposits is proposed and described by application to the copper stocks of Switzerland. The method combines material flow analysis with a bottom‐up analysis of material stocks. The stock composition and temporal characteristics are analysed by surveys and literature analysis. The stock amounts to 269±31 kg capita -1 for the year 2000. The retrospective data are used as parameters to construct a dynamic stock model, which is calibrated by historical trade statistics. The potential for drafting scenarios is discussed. The stock situation in Switzerland is reviewed and compared with that of other regions.
The use of materials and the generation of waste are linked to economic activities and in many projections these are assumed to be a constant ratio of the economic activities. This may be the case considering detailed economic activities and unchanged technology. However, the assumption of constant coefficients is questionable when linking material use and waste generation to aggregated economic activities. Therefore, in this paper, econometrics is used to test the assumption of constant waste coefficients empirically. The analyses show that an assumption of constant waste coefficients is not supported, generally, and amodel allowing for trendwise changing coefficients is developed and used for projections of waste and material flows in 25 European countries.
Approaches to address unsustainable ways of societal development constantly proliferate, but total consumption of resources and aggregate environmental impacts continue rising. This could partially be explained by weak attempts to develop comprehensive sustainability strategies that address the entire life cycle of products and especially resource extraction and use phases. This paper seeks to explore to what extent these life cycle stages and associated impacts are taken into account when various actors employ life cycle thinking and how these concerns can be better attended to in policy-making, business strategies and lifestyle choices. To accomplish this, we evaluate the efforts of the main stakeholders in reaching sustainable consumption and sustainable resource management, and impediments to further progress, and study whether and how deficits in these phases coincide and can potentially contribute to more holistic practical realization of life cycle thinking. We demonstrate that new approaches are needed to be able to tackle the international dimension of production and consumption.
The Wuppertal Institute for Climate, Environment and Energy and the UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production (CSCP) set out to analyse Japanese dematerialisation and resource efficiency strategies within the 3R scope and searched for options of enhancing resource effi ciency strategies, commissioned by the German Federal Environment Agency. A further task of the project was to initiate a policy dialogue including stakeholders, academia, politics and Japanese and European environmental experts. The following paper summarises findings from the analyses, the results of the policy dialogues (Experts Workshop, 6 June 2007 and International Conference, 6 November 2007) and draws conclusions for a potential Japanese-European cooperation on the resource efficiency issue.
In this article, we analyze flows of the platinum group metals (PGMs) platinum, palladium, and rhodium and the environmental impacts associated with their supply in Europe. A model of the use of PGMs in Europe has been developed, and this is combined with a model of environmental pressures related to PGM production. Seven industrial sectors and product groups form the main users of PGMs in Europe, comprising the chemical, petroleum, and glass industries; jewelry, dentistry, electronic equipment, and car catalysts. Most relevant environmental impacts of secondary production in Europe and primary PGM production in South Africa, Russia, and Canada are taken into account, including emissions of sulphur dioxide and carbon dioxide and total material requirement. The article quantifies the PGM flows to, from, and within Europe in 2004. The automotive industry is the single largest user of primary PGMs, and catalytic converters represent the major PGM end use. The chemical and glass industries also require large amounts of PGM but rely mostly on secondary metals. The environmental impacts of primary production exceed those of secondary production by far. An analysis of the use of car catalytic converters shows that as a result of efforts to reduce air pollutant emissions in Europe, other negative environmental impacts, such as point-source pollution and mining waste, are occurring elsewhere - for example, at extraction and refining sites in Siberia and South Africa.
This article introduces elements of a global governance regime for sustainable resource management. It argues that such an approach is needed to combat the negative impacts arising from resource extraction and use as well as to overcome the co‐ordination problems of decentralized action. A first section summarizes main conflicts arising from limited access to natural resources and security of supply, environmental impacts and the performance of resource‐rich developing countries. A second section analyses existing initiatives for sustainable resource management such as resource funds, efforts to increase transparency, programmes in development co‐operation, standards and certification, material efficiency and resource productivity as well as efforts to limit the consumption of natural resources. Though these initiative have their merits, the article concludes that more systematic institutional mechanisms are needed. The third section introduces those institutional mechanisms: it describes the International Panel for Sustainable Resource Management (launched in November 2007), outlines elements of an international convention on sustainable resource management, develops the agenda for an international agency on the issue and discusses the interaction with existing international bodies such as the World Trade Organization. Written as a policy paper, the paper formulates proposals for various actors, from small‐scale miners to large‐scale global companies and governments. Its intention is to stimulate the debate and to broaden the horizon on the global dimension of using minerals.
The policy framework for the promotion of hydrogen and fuel cells in Europe : a critical assessment
(2008)
World primary copper production is expected to increase due to growing demand. Reflecting the geographical divergence of copper deposits and demanding industries, copper is produced by various production paths, differing in regional and technological aspects and related environmental pressures. For the mitigation of environmental pressures related to global material flows and a more sustainable resource management, policy makers, producers and buyers require information on regional resource efficiencies and effects of the key processes within the global production chain. This study quantifies material flows of refined copper production and environmental pressures along the pyro‐ and hydrometallurgical paths for Chile and Germany. Inventories for involved unit processes are distinguished by region and most commonly applied technologies, including electric power supply. Different production paths are compared by environmental pressure indicators (primary energy requirements, total material requirements, water consumption, GHG emissions, solid waste disposal, sulphur dioxide and arsenic emissions). Alternative options for improvement of technologies and supply patterns in Chile and Germany are compared.
Sustainable management of natural resources is a crucial element for a sustainable development, but also a precondition for economic growth. The book analyses raw materials supply and resource use in a global context. The contributions present state-of-the art results and perspectives on the availability of resources. They discuss factors such as demand from emerging and other countries as well as critical shortage of some materials together with the resulting consequences for economies. It also gives new views and perspectives on the sustainable growth in ermerging economies and examines the possibilities and experiences concerning the decoupling of resource use from economic growth. Moreover, it offers cross-country comparisons with emphasis on emerging countries. A key focus is placed on China regarding its domestic energy, climate and resource policy but also its developing foreign policy in Africa.
A model of the use of the platinum group metals (PGMs) platinum, palladium, and rhodium in Europe has been developed and combined with a model of the environmental pressures related to PGM production. Compared to the base case presented in Part I of this pair of articles, potential changes in PGM production and use are quantified with regard to cumulative and yearly environmental impacts and PGM resource use, for the period 2005–2020. Reducing sulfur dioxide (SO2) emissions of PGM producer Norilsk Nickel could cut the cumulative SO2 emissions associated with the use of PGMs in Europe by 35%. Cleaner electricity generation in South Africa could reduce cumulative SO2 emissions by another 9%. Increasing the recycling rate of end-of-life catalytic converters to 70% in 2020 could save 15% of the cumulative primary PGM input into car catalysts and 10% of the SO2 emissions associated with PGM production. In 2020, PGM requirements and SO2 emissions would be, respectively, 40% and 22% lower than the base case. Substituting palladium for part of the platinum in diesel catalysts, coupled with a probable palladium price increase, could imply 15% more cumulative SO2 emissions if recycling rates do not increase. A future large-scale introduction of fuel cell vehicles would require technological improvements to significantly reduce the PGM content of the fuel cell stack. The basic design of such vehicles greatly influences the vehicle power, a key parameter in determining the total PGM requirement.
The study "A Green New Deal for Europe" consists of two basic elements: Firstly it aims to cope with the economic crisis through intensive measures in order to systematically stimulate the eco-industries, to create jobs and to boost economic recovery. Secondly it aims at establishing the foundation for a green modernisation of the European economy. The study examines existing EU strategies policies and programs concerning their suitability to implement the Green New Deal. It proposes exemplary measures in the field of energy, mobility and resource use. The study has been compiled by the Wuppertal Institute on behalf of the Greens/European Free Alliance (EFA) Group in the European Parliament.
The global land area required to meet the German consumption of agricultural products for food and non-food use was quantified, and the related greenhouse gas (GHG) emissions, particularly those induced by land-use changes in tropical countries, were estimated. Two comprehensive business-as-usual scenarios describe the development corridor of biomass for non-food use in terms of energetic and non-energetic purposes. In terms of land use, Germany was already a net importer of agricultural land in 2004, and the net additional land required by 2030 is estimated to comprise 2.5–3.4 Mha. This is mainly due to biofuel demand driven by current policy targets. Meeting the required biodiesel import demand would result in an additional GWP of 23–37 Tg of CO2 equivalents through direct and indirect land-use changes. Alternative scenario elements outline the potential options for reducing Germany's land requirement, which reflect future global per capita availability.
On the one hand, biofuels may provide environmental and social benefits, for instance, when local communities in developing countries are supplied with power and process energy from oil producing plants, in particular when they are grown on land which is not suited for food production. On the other hand, the ongoing expansion of large scale energy farming for transport biofuels can lead to various environmental and social problems. Corn production for ethanol (additive to petrol) for instance resulted in nutrient pollution of the Mississippi basin and the Gulf of Mexico. The growing demand of transport biofuels in Europe can only be met by increasing imports. This contributes to the conversion of grasslands, savannahs and forests in the tropics, losses of biodiversity and additional green house gas emissions. Even if the use of biomass for other purposes, for instance, the combined production of electricity and heat usually provides a better greenhouse gas balance than transport biofuels, energy cropping remains problematic for various reasons. Whereas, when biomass is used for material purposes first, and the energy is recovered from the subsequent waste, a multiple dividend can be gained. The authors address a number of measures for improvement. They also recommend that in view of the complex circumstances of biofuel production and application, current policy mandates and targets for biofuels should be reconsidered. Biomass policies need to be integrated into a broader perspective of sustainable resource management.
Sustainable Resource Management is the result of longlasting exhaustive research by the Wuppertal Institute. Looking at material flows, industrial and societal metabolism and their implications for the economy, this new book provides radical perspectives on how the global economy should use natural resources in intelligent ways that maximise well-being without destroying lifesupporting ecosystems. It presents a vision of the future and the fundamental elements necessary for the sustainable management of the Earth's resources. It argues that the need to manage the use of our natural resources at a sustainable level can be shaped into a great opportunity for innovation and for new institutions to govern change.
The paper aims to shed light on the methodological challenges of GHG monitoring at local level and to give an overview on current practices. Questions addressed are as follows: How do the methodologies which underlie different GHG inventory tools differ? What are the critical variables explaining differences between inventories? Can different GHG inventory tools be compatible - and/or interoperable - and under which conditions? The first section discusses methodological challenges related to the formation of local GHG inventories. Rather than giving a comprehensive overview on methodological problems, this section mainly highlights some of the central methodological challenges posed by local GHG inventories. This overview identifies critical variables and clarifies concepts that are necessary for the understanding of the subsequent analysis. In section two, some of the most advanced GHG inventory tools are analysed and the most important differences between these tools are highlighted. The paper concludes that the methodologies are not consistent. Local GHG inventories can thus hardly be compared. The paper gives research and policy recommendations towards greater comparability and sketches the requirements of an international protocol on urban GHG inventories.
This paper presents the strategy for a large EU-funded Integrated Project: EXIOPOL ("A New Environmental Accounting Framework Using Externality Data and Input-Output Tools for Policy Analysis"), with special attention for its part in environmentally extended (EE) input-output (IO) analysis. The project has three principal objectives: (a) to synthesize and further develop estimates of the external costs of key environmental impacts for Europe; (b) to develop an EE IO framework for the EU-27 in aglobal context, including as many of these estimates as possible, to allow for the estimation of environmental impacts (expressed as LCA themes, material requirement indicators, ecological footprints or external costs) of the activities of different economic sectors, final consumption activities and resource consumption; (c) to apply the results of the work to external costs and EE I-O for illustrative policy questions.