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Environment and human rights
(2004)
Wolfgang Sachs argues for environmental human rights as a fundamental prerequisite to end the violence of development. He outlines the numerous conflicts over natural resources in the struggle for livelihoods and argues for a transition to sustainability in the more affluent economies, in both the North and South, as a necessary condition for the safeguarding of the subsistence rights of those whose livelihood depends on direct access to nature.
In February 2000, the German Bundestag established a Study Commission on "Sustainable Energy Supplies in View of Globalisation and Liberalisation" (cf. Final Report, 2002). The Commission's Final Report is a contribution made by Germany toward implementing the sustainable development objectives defined in 1992 at the World Summit in Rio de Janeiro (Agenda 21). Despite minority votes of several members of the Study Commission, the main outcomes of the Final Report are worthwhile discussing in other industrial countries. The Commission had been given the mandate to identify "robust, sustainable development paths" for the energy sector for the period up to 2050, which represent a scientific basis for the German parliament's further decision-making in the field of long-term energy policy. The applied backcasting approach showed that an ambitious climate-protection goal - reducing CO2 emissions by 80% by 2050 - is technically and economically feasible. The main strategies and instruments for protecting the climate while ensuring asustainable energy supply are summarised.
Global climate
(2004)
From 10 to 14 September 2003, the Ministerial Conference of the World Trade Organization (WTO) negotiated over a further liberalization of world trade. A lot was at stake there for the environment. It is true that in the current round of negotiations the Doha Declaration has agreed certain points relating to the environment. But this should not conceal the fact that the WTO is still a long way from taking due account of ecological aspects in its policies. The present paper begins by analyzing the discussion on environmental issues within the WTO, which for more than ten years has been conducted mainly in its Committee on Trade and Environment. It is shown that many environmental effects of trade liberalization have not been discussed at all, that conflicts of interest among WTO member-states prevent any deep discussion, and that an ecological reform of the WTO has up to now stood no chance. This analysis then forms the background for a twofold strategy. First, arguments are presented as to why the WTO, given its environmental policy deficits, should afford sufficient scope to institutions actively concerned with environmental policy. The conflictual relationship between Multilateral Environmental Agreements and the WTO is examined at this point. A distinction is drawn between minor and potentially critical conflicts, and it is shown how a limitation of the competence of the WTO's Dispute Settlement Body, together with cooperative political-legal processes to resolve conflicts between affected institutions, might offer a solution and lead to greater institutional equity in the global political arena. Second, the paper discusses how ecological aspects might be integrated step by step into the WTO. After a detailed examination of the potential and limits of instruments like impact assessments, it makes a number of recommendations for their further development. Finally, it considers how impact assessments might be integrated into the WTO's institutional structures, so that ecological aspects can be systematically input into policy-making processes and better public participation in WTO policy be ensured. In this connection, the paper discusses both the integration of impact assessments into the WTO's Trade Policy Review Mechanism and the creation of a new Strategic Impact Assessment Body within the WTO.
The objective of analytical strategic environmental assessment (ANSEA) is to provide a decision-centred approach to the SEA process. The ANSEA project evolved from the realisation that, in many cases, SEA, as currently practised, is not able to ensure an appropriate integration of environmental values. The focus of SEA is on predicting impacts, but the tool takes no account of the decision-making processes it is trying to influence. At strategic decision-making levels, in turn, it is often difficult to predict impacts with the necessary exactitude. The decision-making sciences could teach some valuable lessons here. Instead of focusing on the quantitative prediction of environmental consequences, the ANSEA approach concentrates on the integration of environmental objectives into decision-making processes. Thus, the ANSEA approach provides a framework for analysing and assessing the decision-making processes of policies, plans and programmes (PPP). To enhance environmental integration into the decision-making process, decision windows (DW) can be identified. The approach is designed to be objective and transparent to ensure that environmental considerations are taken into account, or - from an ex-post perspective - to allow an evaluation of how far environmental considerations have been integrated into the decision-making process under assessment. The paper describes the concepts and the framework of the ANSEA approach and discusses its relation to SEA and the EC Directive.
Environment and human rights
(2003)
Globalization has a credible future only if the borderless economy does not overstretch the resilience of the biosphere and frustrate demands for greater justice in the world. But what means environmental justice in a transnational context? In general, justice may have three different senses: justice as fairness, justice as equitable distribution, and justice as human dignity. In the first it is a question of organized procedures for the allocation of advantages and disadvantages that are fair to everyone involved; this is the procedural conception of justice. In the second it is a question of proportionate distribution of goods and rights among individuals or groups; this is the relational conception of justice. And in the third it is a question of the minimum goods or rights necessary for a dignified existence; this is the absolute or substantive conception of justice. This paper develops the theme of international environmental justice in the third sense, as a human rights issue. First, it outlines six typical situations in which patterns of resource use come into conflict with subsistence rights: namely, extraction of raw materials, alteration of ecosystems, reprogramming of organisms, destabilization as a result of climate change, pollution of urban living space, and effects of resource prices. It then introduces the debate on human rights and locates respect for subsistence rights as a component of economic, social and cultural human rights. Finally, it offers some markers for an environmental policy geared to human rights, the aim of which is to guarantee civil rights for all in a world with a finite biosphere. Neither power play between states nor economic competition, but the realization of human rights and respect for the biosphere, should be the defining feature of the emergent world society.
Transnational corporations' (TNCs) economic operations cover numerous countries and can be diverted between several continents. These units have reached a level of significance, having not only economic, but also social and environmental implications. This justifies that they shall be treated separately as a social phenomenon, when considering strategies for the development towards sustainability. This paper presents the concept of Responsible Corporate Governance (RCG), as a strategy to "govern" TNCs. RCG is suggested as a stakeholder based policy instrument, which aims at allocating responsibilities to societal actors aiming at corporate accountability. RCG recognises that the process of societal change is strongly based on what can be called as bottom up-processes. Learning processes take place through the interaction of the different societal members, which eventually leads to macro changes. Therefore, governing TNCs towards sustainability improvements is considered to be a collective process including all stakeholders. Firstly, the paper places the concept of RCG in the ongoing debate of political modernization based on the fact that society develops overtime and the political system must correspondingly modernize. In this context, political overload developed as a consequence of increased resource interdependencies is explained and as a resolution, network approach is discussed. Secondly, demands on the orientation of the TNCs in terms of accountability and innovative action are brought forward. Here, the paper also lists down corporate elements (stakeholder empowered corporate governance, management and performance evaluation systems, transparency enhancement and accountability verification), which need to be in place to attain an accountable orientation in the society. Following, using an analytical framework, the orientation and capabilities of each societal actor (environmental non-governmental organisations, financial institutions, intergovernmental organisations) to affect improvements in the corporate responsibility elements are investigated and recommendations for their effective orientation are listed.
Material flows
(2003)
The reductionist trend of equating sustainable development with sustained economic growth needs to be reversed. New accounts and balances help to operationalize the elusive notion of sustainability: they provide a coherent picture of the interaction between environment and economy. "Greened" national accounts measure economic sustainability in terms of (produced and natural) capital maintenance; balances of material flows assess ecological sustainability as the dematerialization of production and consumption. Both concepts aim to preserve environmental assets, but differ in scope, strength and evaluation of sustainability. First results for Germany indicate weak sustainability of the economy; strong sustainability is not in sight because of insufficient reduction of material throughput. Attaining sustainability through integrated policies needs the support of share- and stakeholders of sustainable development.
This report presents the calculations and findings as well as the resulting recommendations from the Barclays Plc case study within the Digital Europe project. Chapter 2 gives the background to the case study; chapter 3 investigates the environmental aspects; and chapter 4 highlights social aspects of different banking scenarios. Chapter 5 outlines future scenarios in the sector and chapter 6 finally makes recommendations for business and government.
This report presents the findings and recommendations of the EMI case study undertaken as part of the Digital Europe project. Chapter 2 sets out the background to the case study; chapter 3 investigates the environmental impacts of digital music; and chapter 4 highlights the social impacts of digital music. Chapter 5 outlines future scenarios for the sector and chapter 6 draws recommendations for business and government.
Environment and human rights
(2003)
The paper explores a framework for analysing governance towards sustainable development. Departing from the thesis about a possible positive role for corporate action, it refers to recent theorizing about both market and government failures. Discussing externalities, public goods, information and adaptation deficits, as well as bureaucracies' self-interest, corruption and capture of the regulator, the paper stresses the importance of governance aiming at synergies between corporate and political governance. Concerning framework conditions, it outlines principles of regulated self-regulation. Following the thesis about a positive role, the paper adds recent insights about theories of the knowledge-based firm, which help to analyse market evolution. In this context, it outlines the concept of "responsible corporate governance". Because governance involves actors in their daily operations and certainly goes beyond setting a frame, the paper finally discusses innovation-inducing regulation, serving complementary functions to a framework and business operations. The conclusion is drawn that governments' main function is to facilitate learning processes, thus departing from states' function as known from welfare economics. Thus, governance will have to be explored as collective learning, involving business, governments, and civil societies’ actors.
This study focuses on the economic, market-related context of consumption patterns and incorporates the regulatory settings and values. The aim is to systemise the influences on sustainable consumption patterns. Special attention is drawn to the question how existing niche markets could be extended to mass markets. This question is deepened by case studies on the green textile and the green power markets. The results emphasise the different key factors which influence the successful pathways for an extended green market volume. Looking at the case of the green power market it can be seen how important it is to create an economic and institutional context for adoption. Looking at the case of green textiles the importance of new lifestyles and cultural impacts are obvious. Looking at the interfaces between institutional settings, supply structure, societal values and consumers' decision-making, it can be seen that consumers' demands are not only a product of individual needs. Therefore sustainable consumption strategies will have to face not only the change of needs, but also the change of structures which influence individual choices.
Rationale for and interpretation of economy-wide materials flow analysis and derived indicators
(2003)
Economy-wide material flow analysis (MFA) and derived indicators have been developed to monitor and assess the metabolic performance of economies, that is, with respect to the internal economic flows and the exchange of materials with the environment and with other economies. Indicators such as direct material input (DMI) and direct material consumption (DMC) measure material use related to either production or consumption. Domestic hidden flows (HF) account for unused domestic extraction, and foreign HF represent the upstream primary resource requirements of the imports. DMI and domestic and foreign HF account for the total material requirement (TMR) of an economy. Subtracting the exports and their HF provides the total material consumption (TMC). DMI and TMR are used to measure the (de-) coupling of resource use and economic growth, providing the basis for resource efficiency indicators. Accounting for TMR allows detection of shifts from domestic to foreign resource requirements. Net addition to stock (NAS) measures the physical growth of an economy. It indicates the distance from flow equilibrium of inputs and outputs that may be regarded as a necessary condition of a sustainable mature metabolism. We discuss the extent to which MFA-based indicators can also be used to assess the environmental performance. For that purpose we consider different impacts of material flows, and different scales and perspectives of the analysis, and distinguish between turnover-based indicators of generic environmental pressure and impact-based indicators of specific environmental pressure. Indicators such as TMR and TMC are regarded as generic pressure indicators that may not be used to indicate specific environmental impacts. The TMR of industrial countries is discussed with respect to the question of whether volume and composition may be regarded as unsustainable.
This report focuses on the contribution of ICT to improvements in resource efficiency and transport intensity at the macro, meso and micro levels. It presents the research on environmental effects of e-business and e-work.
The research strand explored the implication of ICT and its applications from the micro- (case study), meso- (different e-business types) and macro-level (macro-economic and policy level).
The "macro-analysis-module" aimed at quantifying the potential contribution of e-business and ICT to dematerialisation and resource productivity. The analysis followed a top-down approach complementary to the case study based microanalyses. It compromised the analysis of energy-use and selected material flows (CO(2)) of three EU Member States to determine whether there is any macro-level evidence of dematerialization and increased resource productivity resulting from e-business and ICT.
From a micro and meso level perspective, the research object has been the provision of new IT based applications instead of "traditional" products, services and customs (e-commerce and telework). The research quantified the resource- and transport efficiency of e-business in different case studies and identified key factors determining the impact on resource- and transport efficiency.
The paper sketches out a theoretical framework for analysing the interplay between eco-efficiency, cognition and institutions. It derives from analytical shortfalls of the prevailing literature, which features strongly engineering and business economics, by using insights from New Institutional Economics, from Cognitive Science and, partly, from Evolutionary Economics. It emphasises the role cognition and institutions play in the adoption of "green" technologies by firms. A cognitive perspective derives from recent research on simple heuristics and context-based rationality; it is proposed that those findings can serve to analyse decision-making of individual actors respectively firms and, thus, should complement economic analysis. A second proposition is that eco-efficiency and normative rules such as a Factor Four strongly rely upon institutions, i.e. the ability of institutions to evolve over time and the development of those institutions that are most appropriate to enhance technological change. In this regard, business institutions and competition are crucial, but regulatory needs remain in order to safeguard continuity of knowledge creation. The framework allows for an analysis why overall adoption of eco-efficiency still can be considered relatively slow and why some markets and firms are far ahead. As a brief case study the article reflects upon German waste law's ability to enhance eco-efficiency.
The environmental impacts of mobile computing : a case study with HP ; final report ; Digital Europe
(2003)
This report includes the results and calculations of the HP case study within the Digital Europe project. This case study investigates the environmental effects of mobile computing devices as an element of the growing ICT infrastructure for applications such as ecommerce, egovernment and telework. Specifically, the resource intensity of a notebook computer and a handheld device will be analysed and discussed.
Energy labelling for household appliances has become an established instrument to promote energy efficiency. For heating systems, however, this approach has not been successfully implemented yet. This is partially due to the reluctance of industry.
To find ways to motivate industry to participate in a labelling scheme, we carried out a survey among producers of heating systems. Respondents to our questionnaire and personal interviews cover together more than 30 percent of the EU market for heating systems. Thus the results provide a solid basis for conclusions.
Our survey helps to draw a much better picture of the attitudes and expectations of the manufacturers with regard to a labelling scheme. The paper covers:
Attitudes regarding potential effects of a label; Opinions on possible design of a label; Perceived effects of the labels for the companies; Perceived advantages and disadvantages of a label; And, as a conclusion, the potential effects on the companies and their probable relevance.
As a result, industry representatives expect that customers will be able to make sounder purchasing decisions because of the availability of a label. Therefore they believe that energy savings will be achieved. What is more, respondents expect that a label could improve integration of the European market for heating systems and would rather improve their individual economic performance.
The survey results in a clearer identification of industry's problems, needs and interests. It thus will help policy-makers to get industry to support energy efficiency labels and activities.
The paper summarises the findings and the work carried out within the Voluntary Agreements - Implementation and Efficiency project and examines five agreement schemes in the field of industrial energy efficiency in the Netherlands, Denmark, Germany, France and Sweden. It provides a brief characterisation of the different approaches and discusses the related implementation effort and transaction costs. An assessment of performance and environmental effectiveness is given, followed by a discussion of the transferability of voluntary agreements among countries and to the European level.
Unsustainable consumption patterns of the North (or rather of the global affluent consumers class) have been identified by Agenda 21 as one of the key driving forces behind the unsustainable development. However, neither accounting based on the system of national accounts SNA nor household economics provide the proper instruments to assess the environmental impact of household decision making. Eco-efficiency assessments as familiar in the business sector provide no appropriate tool for households. As an alternative an environmental space based assessment scheme is suggested covering the major pressures on the environment caused by household decisions. The methodology is used twice: once to analyse the environmental relevance of the main activity clusters of household consumption and once to identify the dominant acts of consumption within each cluster. The latter provide the basis for deriving environmental performance indicators. A rough analysis of household influence potentials permits to identify housing, eating and mobility as the three priority fields for action for minimising the environmental impact of households. Extending the influence analysis actor matrixes are derived allocating influence and thus responsibility for environmental pressures to different groups of economic agents.
Developing a sectoral sustainability indicator set : the case of the European aluminium industry
(2002)
This manual sets out to be an instruction guide for the implementation of analyses according to the MIPS concept. MIPS stands for Material Input Per Service unit, a measure developed at the Wuppertal Institute, which serves as an indicator of precautionary environmental protection. However, this publication is not a comprehensive description of the methods used, but should rather be seen as supplementing existing publications, in particular, the MAIA Handbook. This practical guide contains additional information, which cannot be part of a methodological description, but which is indispensable for the practical work. This manual is directed at enterprises and persons, who wish to carry out MIPS or a material analysis in relation to products or services. It gives a general impression of what MIPS is, and how MIPS is calculated.
Developing a system of sectoral sustainability indicators for the European aluminium industry
(2002)
Does money blur perspectives for a better life? Lifting the money veil from our yardsticks of progress, income and wealth, reveals the trade-offs of economic growth. The book presents new indicators of the social, economic and ecological impacts of our lifestyles and production techniques. The indicators help to identify those responsible for these impacts and account for their accountability in terms of environmental and other ("social") costs. Sustainable development is to bring about long-term prosperity without undermining its natural foundation. For the assessment of the opaque concept we need both, physical impact measures and environmentally modified ("green") indicators of income, capital and output. Peter Bartelmus opens the dialogue between frequently hostile camps of economists and environmentalists, data producers and users, and scientists and policy makers. Together, they may steer us towards a sustainable future. Practitioners in business, government and civil society will find valuable tools for making their work more sustainable.
The article analyses Japanese approaches to dealing with eco-efficiency from an institutional perspective. Our main outlook is that though promising attempts have been made despite the overall economic crisis, a better horizontal coordination among both administrations and businesses is required. The governance processes can be analysed following approaches developed by New Institutional Economics and related policy analysis. The paper is divided into three sections. The first introduces the concept of eco-efficiency and explains the demand for regulatory policies from theories of market failures; the paper argues in favour of innovationoriented regulation. The second examines how a nation's institutional capabilities influence knowledge generation towards new solutions that sell on the markets; the "capacity-building approach" as developed by Martin Jänicke is explicitly discussed. The third section discusses contemporary Japanese policies with regard to waste, energy and material flows both on the governmental and the business level. It explains how European approaches diffuse and merge with domestic Japanese institutions. However, governance of eco-efficiency is expected to continue to differ due to ongoing national differences and specific conditions of knowledge creation.
The paper sketches out a theoretical framework for analysing the interplay between eco-efficiency, cognition and institutions. It derives from analytical shortfalls of the prevailing literature, which features strongly engineering and business economics, by using insights from New Institutional Economics, from Cognitive Sciences and, partly, from Evolutionary Economics. It emphasises the role cognition and institutions play in the adoption of "green" technologies by firms. A cognitive perspective derives from recent research on simple heuristics and context-based rationality; it is proposed that those recent findings can serve to analyse decision-making of individual actors or firms and, thus, should complement economic analysis. A second proposition is that eco-efficiency and normative rules such as a Factor Four strongly rely upon institutions, i.e. the ability of institutions to evolve over time and the development of those institutions that are most appropriate to enhance technological change. In this regard, business institutions and competition are crucial, but regulatory needs remain in order to safeguard continuity of knowledge creation. The framework allows for an analysis why overall adoption of eco-efficiency still can be considered relatively slow and why some markets and firms are far ahead. As a brief case study the article reflects upon German waste law’s ability to enhance eco-efficiency.
Material flow analysis
(2002)
A policy framework for sustainable resource management (SRM) is required both to guarantee the materials and energy supply of the EU economy and safeguard the natural resource basis in the future. Goals and strategies for sustaining the metabolism of the economy are described. Data are presented on the material throughput and physical growth of the EU's economy, on total material requirements (TMR), its composition, the decoupling from economic growth, and the increased shift to other regions. A first future target Material Flow Balance (t- MFB) of the EU is outlined. Detailed data reveal the "top ten" resource flows. Policy design for SRM should aim at an integrated and balanced approach along the material flow, comprising resource extraction, the product cycle and final waste disposal. Strategies and potential instruments to manage fossil fuels, metals and industrial minerals, construction minerals and excavation are discussed. Possible priorities and examples are given for target setting, focusing on limited expansion of built-up area, reduced use of non-renewables, increased resource productivity, and shift to sustainable cultivation of biomass.
The reductionist trend of equalizing sustainable development with CO2 control needs to be reversed - notwithstanding the significance of climate change. Conventional, "compartmentalized" data systems impede an integrated vision and treatment of the paradigm. New accounts and balances focus on the interaction between environment and economy. "Greened" national accounts measure economic sustainability in terms of (produced and natural) capital maintenance; balances of material flows assess ecological sustainability as the dematerialization of production and consumption. Both concepts aim to preserve environmental assets. They differ however with regard to the scope, strength and evaluation of sustainability. First results for Germany indicate weak sustainability of the economy, owing to an increasing capital base. Strong sustainability is not in sight, though, since material throughput has not been reduced sufficiently. An "Alliance for Sustainable Development" is proposed to implement and sustain the paradigm.
During the UNCED conference in Rio de Janeiro 1992 unsustainable consumption and production patterns were identified as one of the key driving forces behind the unsustainable development of the world (Agenda 21, chapter 4). These consumption and production patterns are based on the European model of industrialisation, spread around the globe in the age of colonisation and brought to extremes by the upper-class of industrialised societies, in particular in the United States, but also in a number of countries in the South. Therefore, all states of the world share the task of developing sustainable consumption and production patterns, while particular responsibility rests with the industrialised nations of Europe, North America and Japan. They, and the thriving but small rich elite in the transition countries and in the South, form a global consumer society, with shared products, lifestyles and aspirations. As it is essential to support the transition towards sustainable development by providing the proper information in an operational manner, the UNCED conference has called for the development of suitable means of information, and in particular for the development of sustainability indicators applicable throughout the world (Agenda 21, chapter 40). The UNDESA set of indicators for changing consumption and production patterns offers helpful advice in this regard but still lacks the theoretical underpinning needed to consistently complete it by defining the few still missing indicators. This paper undertakes to suggest such a methodology based on the environmental space concept. It derives a set of science based indicators from this approach which are easily applicable in everyday life and analyses the environmental relevance of the consumption clusters chosen for analysis as well as the relevance of the phenomena characterised by the indicators suggested. As households are just one actor in the field of consumption, a qualitative assessment of influences is performed and the result depicting the key actors for each environmentally relevant consumption cluster is presented as an actor matrix.
This article provides a short account of the international climate negotiations that took place in Bonn from 16 to 27 July 2001. After the Sixth Conference of the Parties to the Framework Convention on Climate Change failed in November 2000, the Parties had decided to suspend the meeting. The ministers present at the resumed session successfully adopted the "Bonn Agreement to the Kyoto Protocol", a set of political compromises for the most contentious issues left open by the Kyoto Protocol. Although many details had been transferred to the Seventh Conference of the Parties, November 2001 in Marrakesh, Morocco, the Bonn Agreement already paved the way for ratification of the Kyoto Protocol and its entry into force. The Marrakesh Accord adopted on 10 November 2001 transforms, with a few exceptions, this political agreement into bindinglegal text.
Strategic Environmental Assessment aims to incorporate environmental and sustainability considerations into strategic decision making processes, such as the formulation of policies, plans and programmes. In order to be effective, the assessment must take the real decision making process as the departure point. Existing SEA approaches are frequently tailored after an EIA model conceived from a rational perspective on decision making. However, there are good reasons to assume that most strategic decision making processes are characterised by a bounded rationality. Furthermore, the predictability of environmental consequences generally becomes weaker at strategic levels than at the project level and complexity increases in terms of the numbers of actors involved in the decision. This paper examines various theoretical perspectives to decision making and discusses the implications for decision support in general and SEA in particular. The authors argue that the design of the SEA must be more sensitive to the real characteristics of the decision making context.
The paper examines the "Declaration of German Industry on Global Warming Prevention (DGWP)" in its updated version of 1996. The analysis draws on the findings of empirical case studies in the cement and glass sector as well as on a general analysis of the policy process including monitoring experience so far. The findings emphasise the weak impact of the agreement on the most important driving forces for industrial energy consumption. However, an improved design and a more stringent procedural framework would allow better advantage to be taken of the particular strengths of the approach. The paper concludes by making a number of recommendations that would improve the scope and quality of commitments, and would enhance learning effects during the course of the policy process.
The contribution of natural resources and ecosystems to economic processes still remains under-assessed by market evaluation and productivity analysis. Following the historical lines of the classical productivity debate ranging from the French Physiocrats to early neoclassical growth theories, the productivity concept underwent a gradual transformation from its previous understanding based on natural resources and other environmental factors to its contemporary narrow notion. This paper claims that the course of the classical debate has shaped the scope of predominant contemporary analysis. Except for some very recent findings, multifactor productivity largely focusses on a two-factor model. Material Flow Analysis (MFA) provides a useful step for widening the measurement and notion of productivity.
Functional service contracts for white goods : selling a function instead of a product (FUNSERVE)
(2001)
The role of sinks : Thomas Langrock argues that the Kyoto Protocol needs a proper treatment of sinks
(2001)
International climate policy is one of the most fascinating issues in foreign policy, yet in recent years it has become one of the most contentious. The failure of the conference in The Hague revealed, among other things, strongunderlying rifts in the transatlantic relationship. As the self-acclaimed worldleader, the United States is not in a position to exert leadership in this vital area owing to a mixture of constitutional constraints and an ever-growing cultural dependence on fossil fuels such as oil and gas. It therefore falls to the European Union to take up this challenge. This will require careful coalition building with the rest of the world as well as confidence in the ability of Europe to develop a united position, to stick to that position and to translate the rules of the Kyoto Protocol into stringent domestic climate policy. The climate change regime is at a crossroads. At the resumed COP-6 con-ference, the Parties must decide whether to continue the process under theassumption ‘that global problems require global solutions’ or whether to turn to the more regional concept of "think globally, act locally". In either case, steering climate policy in this century on to a successful path will require the skills and dedication not only of natural scientists and technology developers, but also of those in the foreign policy community.
Sustainable mobility : how to move more goods from road to rail ; a comparison of Germany & Britain
(2000)
Sustainable development is the globally embraced paradigm for integrating environment and development policies. Agreement ends with attempts at quantifying the elusive notion of sustainability. A contentious debate among "environmentalists" and "environmental economists" has brought about a confusing proliferation of indicators and policy advice on sustainable development. Generating a common language by means of integrated physical and monetary environmental accounting could moderate the debate. Economic and ecological sustainability is thus distinguished and operationalised in terms of capital maintenance and dematerialisation of economic activity. Empirical results presented are not conclusive, however. Moreover, the reconciliation of environmental and economic policies requires more than comparable statistics strategies and instruments of environmental cost internalisation need to be evaluated and combined with those of raising resource productivity. A social compact between government and civil society should provide the necessary support for achieving consensus and partnership. The sustained implementation of sustainable development depends on it.
Measures to reduce exhaust emissions from civil air traffic : R+D-project 105 06 085 ; final report
(2000)
Sustainability as defined by the Brundtland Commission, is a composite and thus ambitious policy target. It comprises environmental, economic, social, and institutional criteria with equal importance. Because of this complexity the first step of a (Local) Agenda 21 process should be to develop a vision of a sustainable society - a "leitbild" - useful as a compass, not a road map (or, even worse, a blueprint), attached by indicators that help to measure progress, distance to target, and failures of plans or their implementations. In the following article a model is proposed how local sustainability indicators can be developed and how they can help to reduce the complexity of sustainability and to concretize a program for the Local Agenda 21. To get a practical impression of the theoretical presentation an example is given in the last part of the article. It shows the experiences made while developing sustainability indicators in the City of Iserlohn.
It is not the scarcity of resources that constitutes environmental problems, but their use, the physical throughput of our economies. Material flows are a proxy for the totality of the unspecific environmental risks from human activities. As a strategic goal, an increase of the life-cycle-wide resource productivity by a factor 10 is suggested, including the materials bought and sold and the not-valued materials: we have to take into account the product itself and its "ecological rucksack". Material flows are best measured at the input side of the economy, where their number as well as the number of entry gates is limited. Thus here regulation and economic incentives can work more efficiently and less bureaucratically than today. The material intensity of products and services can be expressed as MIPS, the material input per unit of service, and as TMR, the total material requirement on the macro level, an important element in physical input–output tables.
Dematerialization, MIPS and factor 10 : physical sustainability indicators as a social device
(1999)
An input-output approach to analyse the Total Material Requirement (TMR) of national economies
(1999)
Global climate
(1999)
Sustainable consumption
(1999)
The discussion of sustainable development focused attention on new environmental goals and raised the issue of improving resource productivity. A first step towards sustainability would be to slow-down and reduce the man-induced movements of materials: this is the focus of dematerialization approach which emphasizes what socialist countries used to neglect most – minimizing the use of scarce input factors. This paper applies the dematerialization approach to the discussion on sustainable development in central and eastern Europe. In the early 1990s all countries in eastern Europe have developed new environmental programs which mainly focus on reducing pollution. Environmental strategies focusing on reducing emissions are important but not sufficient for reaching sustainability. A new orientation in the environmental policy in the young market economies is required. Dematerialization approach can be a new option for environmental policy in central and eastern Europe. Dematerialization requires a mix of instruments. Important role can be played by an ecological fiscal reform which covers ecological tax reform and the restructuring of subsidies.
In this paper the results of an analysis of the material intensity of advanced composite materials are presented. The analysis is based on the MIPS-concept of the Wuppertal Institute which allows the calculation of the overall material intensity of products and services. It can be shown that the production of one kg of E-Glass fibers is connected with the consumption of 6.2 kg materials, 95 kg water and 2.1 kg oxygen which is of similar size compared to the inputs required in steel production. Material inputs required to produce one kg of p-aramid are 37 kg of materials and 19.6 kg air. Values for carbon fibers are even higher yielding to 61.1 kg of abiotic materials and 33.1 kg of air. Similarly, the production of epoxy resins is connected with larger material flows than the production of polyester resins. Of core materials, inputs per kg for PVCfoam exceed those in PUR-foam production by a factor of 1.4 in water to 2.3 in abiotic material consumption. However, ecologically decisive are not the inputs per kg but the material input per service unit. Therefore, the material input per service unit computed for the body of a passenger ship and a robot arm are compared with alternative steel and aluminium versions. Both examples show that in the case of significant inputs during the user phase of products, even a more material intensive investment in the production phase can yield significant ecological benefits over the whole life-cycle compared to metal versions. Improvements can easily reach a factor of two albeit significant potential for engine optimizations have still been neglected. Results already include the actual recycling quota of metals whereas for composites only virgin material has been calculated as any form of real recycling does not actually exist but only certain types of downrecycling. Of those treatment options, first material recycling and second the use in blast furnaces would lead to better results in resource productivity than incineration and landfills. The paper finally draws some conclusions about the potential advantages of material substitution in the automotive industry. Due to the rather short real operation time of cars during their user phase - around six months - an investment in advanced composite materials in car production only results in a significant improvement of the overall eco-efficiency of cars if it allows a substantial weight reduction of the overall vehicle.
Applying the material-based approach to Central and Eastern European Countries : the case of Poland
(1999)
Sustainable development is the globally embraced paradigm for integrating environment and development policies. Agreement ends with attempts at operationalizing the elusive notion of sustainability. A contentious debate among "environmentalists" and "environmental economists" has brought about a confusing proliferation of indicators and policy advice on sustainable development. Greening the monetary national accounts could moderate the debate by generating concepts and indicators which translate environmental concerns into the language of widely used economic variables. The implementation of sustainable growth and development requires more. "Eco-nomic" instruments of environmental cost internalization need to be combined with environmental legislation and regulation. Such reconciliation of environmental and economic policies should be supported by a "social compact" between government and civil society. The sustained implementation of sustainable development depends on it.
Firms and dematerialisation
(1999)
Statisticians avoid getting involved in data analysis, leaving data users on their own in interpreting the results of their work. This is particularly unfortunate in a new area of applied statistics such as environmental accounting with which few are really familiar. Earlier this year data producers and users explored, in a national seminar, possible policy applications of the results of a "green accounting" project in the Philippines. The main findings of the author's contribution to the seminar, on which the present paper is based, are that environmental accounts: (1) present evidence of sustainable economic performance in the country during the relatively short-time period of 1988–1994; (2) provide information for environmental cost internalization; (3) may guide investment to environmentally sound production processes; (4) help to specify and monitor policies of natural wealth conservation, distribution and management; and (5) reveal major data gaps. The paper concludes that environmental accounts help to assess the sustainability of economic growth in terms of broadly defined capital maintenance. The sustainability of development, however, would have to be measured by alternative or supplementary physical indicators linked to quantifiable standards or targets.
The European Commission has established the Eco Management and Auditing Scheme (EMAS) to promote and institutionalize corporate environmental management and environmental audits. This article summarizes a study primarily concerned with the execution of an ecoaudit in a medium-sized furniture enterprise according to the rules of EMAS. Material flow accounting was used to assess and analyze the "gate-to-gate" and "cradle-to-grave" environmental impacts related to the firm's products and activities. A resource management strategy was developed that permits the determination of methods for firm-specific material flow management, product management, and ecological product design to improve environmental performance as seen from the vantage point of resource efficiency.
Energy and material flows
(1998)
Local Agenda 21 in Germany
(1998)
Global climate
(1998)
This report will first provide a brief account of the political developments that led to the adoption of the Kyoto Protocol. Second, it will provide a preliminary analysis of the Kyoto Protocol itself, and, third, it will assess the prospects for the further development of international climate policy and law in 1998 and beyond. Developments outside of the Kyoto negotiations will be included to further elucidate the actual international negotiations.
Speed limits
(1998)
Differences in climate change policy in Germany and the U.S. from a political science perspective
(1998)
International and national climate change policies may either mutually support or block each other. The international political debate can on the one hand be a driving force, mainly because of its "agenda-setting" power for the national political debate, but on the other hand the outcome of international climate change policy depends on the capability of national governments to formulate adequate political goals and programs, and to have the power for their realisation and implementation in the national political process.
The following analysis will focus on the differences in climate change policy in Gerrnany and the United States. From a po1itical science perspective, it has to deal with the determinants and restrictions of the policy-making processes and their impact on policy formulation and implementation in both countries. Two kinds of determinants will be considered: structural "internal" determinants deriving from the specific setting and mode of operation of the political-administrative systems, and external determinants, such as public opinion, the role of the media. interest groups, and cultural values, which favour or restrict the process of a pro-active climate change policy.
"Joint Implementation" (JI) is considered by many participants in the international negotiations on aclimate protocol to be an important economic instrument for the implementation of greenhouse gas obligations. Apart from a wide range of problems that still have to be resolved on the project level, the institutional and procedural design of such a mechanism is of vital importance. Because JI has a "perverse incentive" to overstate results achieved by individual projects, careful reporting, monitoring and verification procedures are essential. Furthermore, the institutional structure must reconcile the sometimes conflicting demands of overall effectiveness and cost-effectiveness. This paper explores the possible design of a future international mechanism for JI and makes recommendations with regard to the institutional and procedural requirements.
The implications of including sulfate aerosols on scenarios of admissible greenhouse gas emissions
(1998)
While sustainability is in danger of being reduced to a meaningless platitude, the brutal fact remains that industrial countries make a disproportionately large and negative impact on the environment. A serious transition to sustainability will require changing people's mindsets and social institutions, in addition to public policies, technologies and business practices.
This book presents a path-breaking analysis as well as highly innovative proposals for managing this transition. Emanating from Europe's foremost environmental policy think-tank, it has already stirred up a major new debate in Germany on radical, but feasible, directions in which the governments of industrial societies ought to be moving. The concept of "environmental space" and its ingenious development of indicators for measuring an economy's national and global impact combine with its delineation of concrete policies to give this book its intellectual power and potential political impact.
Five years after the Earth Summit in Rio de Janeiro, the hesitancy of developed countries is turning out to be the main impediment to implementing an effective policy for sustainable development. Alongside the further development of international environmental regimes, setting up national action plans is necessary to close the action-gap in the North. However, this can only succeed if the action plans include binding objectives that can be monitored and evaluated. Current national strategies for sustainable development only meet this criterion in exceptional cases; in most cases only qualitatively and legally nonbinding objectives are included. In the present paper, a suggestion for a cluster of environmental policy targets is put forth, which - using Germany as an example - establishes the sustainability concept at the national level. Particular emphasis is placed on the normative dimension of target setting.
China and climate change
(1997)
Sustainable development
(1997)
Why speed matters
(1997)
This paper takes a look at the development of freight transport and its further perspectives in the light of environmental sustainability. It clearly challenges the traditional view that further growth in freight transport is indispensable whatever stage of economic development an individual economy has achieved. Moreover it suggests measures to be taken into consideration in sectors other than the transport sector which may help to break the trend of continuing freight transport growth. Current developments of freight transport volume and modal split are rather counterproductive as regards curbing the unwanted environmental impacts. As growth in volume is a major contributing factor for most adverse effects caused, a substantial decoupling of economic growth and freight transport would be extremely helpful. While freight transport activity is almost entirely derived demand there can be no sufficient solution for the resulting environmental problems within the sector itself. Therefore, it is necessary to examine potentials for reducing demand for freight transport in all sectors of the economy. Contrasting to the widely held view that freight transport is in general an inevitable prerequisite of economic development, there are potentials for reducing the freight intensity of the economy which could be far more exploited. Such potentials are increasing the share of regional production, slowing down the metabolism of materials in the economy, and substituting transfer of information for transport of physical products. While each of these potentials on its own may appear to offer limited effects, a proper combination might yield substantial results. The presented preliminary ideas suggest that the notion of everlasting freight transport growth is misleading and hint at the necessity for further research.
The issue or concept of "sustainable development" entered onto the public and political agenda only relatively recently, and, five years after signing Agenda 21, perceptions of it are still ambiguous. A review of organisational adjustments and of German communications to the United Nations Commission on Sustainable Development shows that the German government's level of commitment to Agenda 21 is still low. This view is supported by an assessment of developments, and the Government's poor performance so far, in three institutional indicators. However, there is evidence that some incremental steps towards a sustainability transition are being taken as in some areas of business and industry and local government attitudes are begining to change. In addition, awareness of sustainable development is being raised by the efforts of non‐governmental organisations and the scientific community. Generally though, the lack of institutional reorganisation is the major obstacle to a German sustainability transition. This is an expression of the generally low priority of environmental and global development issues in the aftermath of German unification and the related economic and social problems. The traditional economic paradigm where economic growth is believed to be the precondition for welfare prevails and is considered by a majority of decision‐makers not to be compatible with the sustainability transition.
Germany
(1997)
Green taxes come to Europe
(1997)
Global climate
(1997)
In the discourse about sustainable development, "constant natural capital" is frequently referred to as a criterion for ecological sustainability. But what is "natural capital"? The concept will be analyzed by presenting arguments in favour of using the term and different versions of sustainability (strong and weak). Subsequently, a critique of the "natural capital" concept is brought forward, from an ecological as well as from an economic perspective. Following this critique, the use of material inputs and the material input per unit of service (MIPS) as a measure for the environmental impact potential is suggested. Dematerialisation is understood to be an alternative management rule for sustainability. In conclusion, a change of perspective is proposed. Due to the conceptual and measurement problems associated with the "constant-natural-capital" criterion (which refers to a stock), it seems more reasonable from a scientific as well as from a practical perspective to add flows (i.e. material inputs) to a decision criterion for whether a development is sustainable or not.
The main focus of this paper is on freight transportation and food supply in the United States and in Europe especially in Germany. Organic, resp. healthy and safe food is a growing demand in both countries. People who consume organic food often believe that this contributes to an environmentally sound behaviour. But transportation issues are not or rarely taken into consideration so far, although long distance transport not only needs energy, it as well influences quality, freshness and taste of food. On both sides of the Atlantic, in freight transportation and food supply can be found a lot of differences as well as similarities. Main differences to the U.S. from the European standpoint are e.g. the bigger land area and larger and much more concentrated economic units. Quite naturally one can find a higher volume of long distance freight transport than in Europe. Similarities can be observed, but very often they present themselves in another extent, e.g. the trend towards privatisation and liberalisation, to more extended suburbanisation or to an unreflected way of consumer behaviour. In addition, this report raises some new questions: is the ’technological solution’ of environmental problems the only way? What can be done to include lifestyles and consumer behaviour into a new strategy?
Sustainable development, as it emerged in Agenda 21 from the Rio conference in 1992, will only be meaningful when it touches the lives of ordinary people; then it becomes a reality. Local Agenda 21 (LA21) seeks to achieve that objective. This article assesses the origins of LA21, reviews its social and political significance, and considers its prospects in the light of case study experience emerging from the UK, Germany and Norway, focusing on the role of local government as a major stakeholder in Agenda 21 (A21). The range of response to LA21 has proved to be varied. A successful transformation to a more sustainable world will require visionary political leadership, supportive administrations, networks of experience sharing, alliances with non‐governmental organisations and local industry, and effective community mobilisation. All of that, in turn, requires equally supportive economic and social policy backing from national governments. This article will indicate that, not surprisingly, it is the domestic political context, nationally and locally, which in the main determines the speed and nature of response to LA21, now and in the future. By understanding and being aware of these contexts, factors impeding progress towards LA21 may be addressed, whilst at the same time retaining the diversity of response which is an essential part of local sustainability.
Global climate
(2007)
What is "natural capital"?
(1995)
The well-travelled yogurt pot : lessons for new freight transport policies and regional production
(1995)
Sustainable economy
(1994)
This paper claims that countries of the North must develop a new model of wealth - one less harmful to the environment and capable of being applied throughout the world. There are reasons to be hopeful they will do so: first, they have the means at their disposal; second, it is a misconception that environmental protection is a cost; and third, there is mounting pressure for change as indicated by air, water and soil quality data. The challenge is to move the emphasis away from end-of-the-pipe pollution control to improving resource productivity. The best way of doing this is through the imposition of "green taxes" to raise resource prices. If governments compensate by cutting other taxes to make the change revenue-neutral, there would be real benefits to the environment and the economy, particularly in developing countries.
System transformation and environmental policy : problems and options in Central and Eastern Europe
(1993)
The discrepancy between ecologically conscious attitudes and actual behaviour is described as an inner resistance, and as connected with a propensity to ignore the external costs of wealth. Evidence is presented that this propensity is based on pro-material traits such as the positional attitude and the passion for goods. These traits are traced back to control orientation, whereas ecological responsibility is shown to be related to autonomy orientation. The societal origins of these basic orientations, and hence the conditions of reinforcing post-materially and ecologically minded behaviour, are discussed.
The Federal Republic of Germany committed itself in June 1990 to reduce its carbon dioxide emissions by 25% of the 1987 level by the year 2005, as a measure of slowing down the increase in the greenhouse effect. The issue of a human-caused climate change, however, did not surface in Germany for the first time just a few years ago. The potential threat was recognized a half a century ago. This article traces the history of the German climate change debate in the last 50 yr and discusses the forces and events that shaped it. The way in which various societal actors - among them scientists, the government, industry, non-governmental organizations (NGOs) and the media - entered into and influenced the debate is also examined. Unfolding the history of the global warming debate in Germany reveals how the country's current policy stance evolved.
The party's over
(1993)
Prices should tell the truth
(1992)
It is now widely recognized that effective communication and demand-side policies for alternative energy require sound knowledge of preferences and determinants of demand of the public and consumers. To date, public attitudes towards new transport technologies have been studied under very different conceptual frameworks. This paper gives an overview of the various conceptual frameworks and methodologies used, where four main approaches can be distinguished: general attitudinal surveys, risk perception studies, non-market economic valuation studies, and other approaches such as those based on semiotic theory. We then review the findings of the recent literature on acceptance, attitudes and preferences for hydrogen and fuelcell end-use technologies, focusing on vehicles. These studies are then contrasted with related research into alternative fuel vehicles. The paper finally discusses the main trends in research and avenues for further work in this field. We recommend, among other things, the use of approaches that build knowledge and familiarity with the technology prior to the exploration of attitudes, and the set up of studies that take a whole-systems perspective of hydrogen technologies and that look at hydrogen in the context of other competing clean technologies.
A promising candidate that may follow conventional vehicles with internal combustion engines combines hydrogen from regenerative sources of energy, fuelcells and an electric drive train. For early fleets introduced the refuelling infrastructure needs to be in place at least to the extent of the vehicles operational reach. The question arises which strategies may help to keep initial hydrogen and infrastructure cost low? Industrial production, distribution and use of hydrogen is well-established and the volumes handled are substantial. Even though today's industrialhydrogen is not in tune with the long-term sustainable vision, hydrogen production and infrastructure already in place might serve as a nucleus for putting that vision into practice. This contribution takes stock of industrial production and use of hydrogen in North Rhine-Westphalia based on a recently finalized project. It demonstrates to which extent industrial hydrogen could be used for a growing number of vehicles and at which time additional capacity might need to be installed.
Concentrated solar power (CSP) plants are one of several renewable energy technologies with significant potential to meet a part of future energy demand. An integrated technology assessment shows that CSP plants could play a promising role in Africa and Europe, helping to reach ambitious climate protection goals. Based on the analysis of driving forces and barriers, at first three future envisaged technology scenarios are developed. Depending on the underlying assumptions, an installed capacity of 120 GWel, 405 GWel or even 1,000 GWel could be reached globally in 2050. In the latter case, CSP would then meet 13–15% of global electricity demand. Depending on these scenarios, cost reduction curves for North Africa and Europe are derived. The cost assessment conducted for two virtual sites in Algeria and in Spain shows a long-term reduction of electricity generating costs to figures between 4 and 6 ct/kWhel in 2050. The paper concludes with an ecological analysis based on life cycle assessment. Although the greenhouse gas emissions of current (solar only operated) CSP systems show a good performance (31 g CO2-equivalents/kWhel) compared with advanced fossil-fired systems (130–900 CO2-eq./kWhel), they could further be reduced to 18 g CO2-eq./kWhel in 2050, including transmission from North Africa to Europe.
Material flows induced by national economies can be regarded as indirect pressure indicators for environmental degradation. Economy-wide material flow analysis and indicators have been designed to monitor material and energy flows at the macroeconomic level and to provide indicators, which could contribute to management of resourceuse and output emission flows from both economic, environmental and broader sustainability points of view. These indicators can serve various purposes including monitoring the material basis of national economies and related environmental pressures, assessment of the material and resource productivity and monitoring the implications of trade and globalisation.
The main part of this paper compares the material and resourceuse of the Czech Republic, Germany and the EU-15 by means of DMI and TMR indicators over the period of 1991–2004 (1991–2000 for EU-15). At the aggregate level both indicators in all three economies do not show any clear decreasing or increasing trends over the period considered. This means that environmental pressure related to use of materials for production and consumption purposes remains rather stable. All the economies however, recorded an increase in the efficiency of transforming the material/resource inputs into economic output. The analysis further revealed that most of the dynamics of DMI and TMR in the Czech Republic tended towards a higher similarity with Germany and the EU-15. In the future, further decreases in DMI as well as in TMR of fossils fuels might be expected in the Czech Republic, which could be counteracted by increase in DMI and TMR of metal ores/metal resources and non-metallic minerals/non-metallic resources. The future development of total DMI, TMR and material/resource intensity in both the Czech Republic and Germany will depend on further shifts to less material intensive industries and services and on increasing material efficiency in production and consumption of particular products. This is not only a technological, but also a social challenge, as there are barriers in current mode of governance and in shaping of current economic and social systems to do so.
The Energy End-use Efficiency and Energy Services Directive (ESD) of the European Union requires the member states to define and attain an overall target of at least 9 % annual energy savings between 2008 and 2016. Even if this target is indicative, this is the first international framework mandating countries to report on their energy savings results and prove achievement of their targets. The directive thus also required the development of harmonised calculation methods that can be used by member states for this proof and reporting. Existing literature covers most of the usual issues related to energy savings evaluation, but mostly looking at single, given energy efficiency programmes or policies. The evaluation objective for the ESD implementation is different, as it aims at accounting for the whole energy savings achieved in a country. Moreover, one of the main difficulties is the diversity in history and experience on this topic among the member states. In this context, the European project EMEEES has worked out an integrated system of bottom-up and top-down methods for the measurement of energy savings. The paper presents the overview of its final results. The proposals, inter alia, include 20 bottom-up and 14 top-down case applications of general evaluation methods. They enable more than 90 % of the potential energy savings to be measured and reported. They were used as a starting point by the European Commission to develop the methods recently recommended to the member states. Furthermore, the paper briefly discusses the importance of the quantity to be measured-all or additional energy savings - and the effect of measures implemented before the entering into force of the ESD ("early action"), and what this meant for the methods to be developed. It compares the main elements of calculation needed to ensure consistent results between bottom-up and top-down methods at the overall national level. Finally, general conclusions are drawn about what could be the next steps in developing an evaluation system that enables a high degree of comparability of results between different countries.
This paper presents the evaluation of a regional energy efficiency programme implemented in two "départements" of France. Électricité de France (EDF), a French energy company, provides refurbishment advice and financial incentives to end-users in the residential sector as well as specific training courses and certification to local installation contractors and building firms. Refurbishment measures analysed in this paper are efficient space heating equipment (condensing boilers, heat pumps and wood stoves or boilers), solar water heating systems and the installation of double-glazed windows. A billing analysis based on a survey of programme participants' energy consumption is used to calculate the energy savings attributed to the programme. In order to receive an economic feedback of this demonstration programme, the evaluation of both saved energy and programme costs is of importance. Detailed knowledge of the programme's cost-effectiveness is essential for EDF to achieve the saving obligations imposed by the French White Certificate scheme at the lowest cost. Results of this evaluation can support the development and implementation of further energy efficiency programmes with similar characteristics in other regions of France. The cost-effectiveness is determined from the perspective of the programme participant and the society as well as the energy company in charge of the programme. All cost and benefit components are calculated in Euro per kilowatt-hour, which allows a direct comparison of levelized costs of conserved energy with the avoidable costs of the energy supply system.