You are in: Home > Environmental Economics and Management
Last changed: 2/02/12
UBA is in a position to become even more environmentally friendly and continues to optimize operations, even after 10 years of environmental management. In the future, business travel will increasingly be replaced by video conferencing, the CO2 emissions of its official cars will be reduced by ten percent. More staff will opt for green modes of transport such as bus, rail, bicycle or foot. Nesting and brooding place for birds, beehives and rare domestic sheep species are already doing their bit for the environment.
Energy renovation of buildings would save up to 30 percent of greenhouse gases in the construction industry by the year 2030. However, a mere one-third of economically feasible and energy-saving potential is being tapped. One reason is that there is a lack of qualified personnel. “We need an education and training offensive campaign to promote energy renovation in building stock,” says UBA President Jochen Flasbarth.
Unfortunately, this trend is on the rise. Even worse, nearly half the subsidies which harm the environment promote the use of oil, coal or gas, thus thwarting environmental protection efforts. In times of record debt environmentally harmful subsidies must be subjected to serious review. A UBA background paper illustrates financial policies that could make savings.
Emissions trading systems have been or are being established in many countries and regions around the world to curb climate-damaging emissions of greenhouse gases. Most of these systems include measures to safeguard the competitiveness of industries under an emissions cap. A study commissioned by UBA has examined and compared various approaches, with the aim of an early identification of potential barriers to the linking of emissions trading systems to a global carbon market.
The report provides an overview of the economic performance and relevance of the environmental industry in Germany. Nearly 1.8 million people are employed in the environmental sector in Germany. The world market for environmental technology is predicted to more than double by 2020. In particular, the renewable energy, resource and energy efficiency, and sustainable water management sectors are of growing importance.
This report commissioned by UBA evaluates lessons learned from the Mobile Phone Partnership Initiative (MPPI), which was set up under the Basel Convention, as a basis for future public-private partnerships (PPP) in the framework of international agreements. It provides general background information, identifies reasons why organisations and countries are looking towards PPP to deliver on their international and domestic obligations and describes challenges faced in engaging different stakeholders such as governments, industry, NGOs or developing countries.
The debate over economic growth and welfare and the link between the two has re-intensified both nationally and internationally. Deficits exist, for example, in the inclusion of the costs of environmental changes and of maintaining social cohesion, which gross domestic product (GDP) does not cover. A research project commissioned by UBA has analysed possible complementary indicators and proposes a “National Welfare Index” (NWI) composed of 21 sub-variables. This project was a follow-up to a project in which visions for the further development of the German national sustainability strategy were discussed in interdisciplinary technical dialogues.
Serious efforts to mitigate climate change would reduce annual global economic performance by only around 1.5 per cent in this century. This means that the goal of limiting global warming to no more than two degrees Celsius can be achieved at moderate costs. This study shows that energy saving and use of renewable energy provide cost-efficient alternatives to the use of nuclear energy.
In Germany, area dedicated to settlement and transport continues to grow. One reason for this is that greenfield construction is particularly cost-effective for those involved. Yet, it also means high infrastructure costs to be borne by the public. The study suggests measures designed to make the costs of site development more visible and remove wrong incentives and to thus reduce land-take and the cost to the public.
The report on the WTO admissibility of border tax adjustments which was published by UBA in 2008 is now also available in English. Climate protection measures engender additional costs for EU-made products to which goods manufactured outside the EU are not subject. Border tax adjustments could offset these additional burdens and create a level playing field. Such border tax adjustments are admissible under WTO regulations.
German firms have the lead in the global environmental protection market. With almost 19% of world trade and an export volume of 56 billion euros, Germany once again ranked first in world trade in 2006, before the USA (15 percent) and Japan (9 percent).
This study of German promotion policy analyses direct support programmes as well as various environmental policy instruments that affect innovation indirectly such as taxes and regulation. It is complemented by an analysis of best practice examples from abroad including California’s climate policy and Japan’s top-runner programme.
The flexible project-based Kyoto mechanisms JI (Joint implementation) and CDM (Clean Development Mechanism) can do much to support the international diffusion of climate-friendly technologies and thus increase the cost-efficiency of climate protection measures. A new study predicts a significant market growth for CDM and JI projects.
Aviation noise can be reduced by introducing landing charges based on aircraft noise emissions. A study carried out by Öko-Institut on behalf of the Federal Environment Agency makes practicable recommendations for an effective system of noise-based landing charges that should be taken up in future.
Germany is on the road to a green economy, using less resources, land and energy than just 10 years ago to obtain the same yield. At the same time, the importance of environmental protection as an economic factor is growing. As shown by the environmental economy report, major opportunities for employment exist in particular in the fields of climate protection, increasing resource efficiency, and export of environmental and efficiency technologies.
A new Federal Environment Agency study examines the role which sinks and emissions in the sector of land use, land use change and forestry (LULUCF) play in existing and future emissions trading systems. Harmonised standards are important to ensure that the different regional emissions trading systems will be able to form an effective and efficient international carbon market in future.
In November 2010, UBA hosted the International Forum on Greening Real Estate Markets in cooperation with the UNECE.
Topics dealt with included the advantages of eco-construction for real estate markets and incentives governments can provide to encourage more environmentally sound building. The outcomes from the Forum can help to boost the implementation of the UNECE action plan on energy efficiency.
The EN 16001 standard of 2009 sets uniform EU-wide criteria for structured energy management systems. By implementing the standard, companies and organisations can improve their energy efficiency and identify energy saving potential. The new guideline published by UBA and BMU shows in a clear and practice-oriented way just how it is done and that doing so is worthwhile in both environmental and economic respects.
The emission reduction targets of the world’s major CO2 emitters are not yet sufficient to limit global warming to 2 degrees Celsius. Doing more will not necessarily cost us more, however. A new study commissioned by UBA shows that economic costs in terms of reduced gross domestic product (GDP) compared to baseline GDP in 2020 are no higher than 0.25 percent, assuming that emission allowances are traded globally. If the EU reduces its emissions by 30 percent (instead of by 20 percent) by 2020 compared to 1990 levels, the reduction in GDP growth will be marginal.
The European Commission has awarded the UBA the 2009 EMAS prize in the category ”public organisations” for its green procurement, such as the use of green electricity and recycled paper. UBA vice-president Dr. Thomas Holzmann was handed the prize on 19 November in Stockholm.
Measures to increase energy efficiency benefit both the climate and the job market. Investment in energy efficiency and emissions reduction measures will bolster the position of Germany as a business location in the long term. According to a new study, these measures could create some 630,000 new jobs by 2020.
A research project commissioned by the UBA analyses economic instruments designed to reduce emissions from seagoing ships. The results are presented in two studies. One deals with the extension of the EU emissions trading scheme to shipping, and the second study evaluates different market-based instruments for abatement of emissions from shipping, taking the Baltic Sea as pilot region.
The discussions on the links between world trade, climate change and eco-innovation have only just begun. In a workshop these links were discussed from the perspective of an ecological industrial policy. You can find the workshop contributions in this report.
Environmental technology markets offer companies considerable future opportunities. Eleven case studies (in German with English-language summary) provide a detailed picture of specific environmental technologies and their development prospects. The studies analyse the competitiveness of German companies and the technologies’ innovation dynamics. They describe key actors and identify opportunities for strengthening the German and European innovation systems.
Experts of the firm Roland Berger Strategy Consultants expect 120 percent growth in environmental protection technology by 2020. The consultants surveyed over 90 top companies about market prospects in six branches: energy generation and storage, energy efficiency, mobility, waste management and recycling, water management, and efficient use of resources.
Many less developed countries have considerable, as yet untapped, potential for using renewable energies. A new study looks into the role the Clean Development Mechanism (CDM) can play in exploiting these potentials.
Environmental management systems in operational management is on the advance in Germany. Nearly 10,000 businesses and organizations have opted for the European EMAS system, international ISO 14001 standards, or other environmental management systems—and the numbers are rising. The Federal Ministry for Environment and the Federal Environment Agency commissioned a new study to aid medium-sized companies in particular in choosing a system that is right for them.
The Federal Environment Agency has commissioned a project to investigate the effects of the ecotax on companies and private households. Its outcome: The ecological tax reform has had the desired results. Contrary to the widespread criticism it has received from the private sector and politicians, the eco-tax has had positive effects on the environment and the economy.