Eco-innovation offers opportunity in emerging markets

European and emerging economies should increasingly view one another as business equals and exploit the opportunities for co-operation on green growth and eco-innovation development and diffusion, stakeholders heard at the 11th ETAP Forum Eco-innovation in Finland on 11 and 12 October on Sustainable Development, as part of the build up to the Rio+20 United Nations Conference on Sustainable Development in 2012.

Policymakers, business leaders and academics from Europe and the main emerging eco-innova- tion markets – Brazil, China, Korea, Russia and South Africa – drew up recommendations for the EU position at the Rio+20 Summit in Brazil in June 2012. This will be a fresh opportunity for world governments to commit to sustainable develop- ment, green growth and poverty eradication.

There are tremendous business opportunities for resource efficiency, especially in emerging markets, according to a new report from global consultancy firm McKinsey. But for Europe and emerging economies to make the most of these requires a new kind of co-operation.

This would involve:

1. More co-operation and coordination between countries, sectors, companies, the public and private spheres, and science and business. Intermediaries must be strengthened and in some places, created;
2. Adaptation to local context: “It’s not only about inventing new things: it’s also about diffusing technologies, upgrading services and introducing new business models,” said Timo Makela, Director for Interna- tional Affairs, Life and Eco-Innovation at the European Commission;
3. Equal partnership: European and emerg- ing economies should recognise they share many of the same challenges and view one another as equal partners in eco-innovation. Partnerships should be shaped around end- user demand;
4. Supportive governance and politics: Rio+20 must outline the transition to global green development. This should be underpinned by more liberalised trade in environmental products and services, and a robust intel- lectual property rights regime;
5. Sound economics: there must be sufficient incentives for the private sector to invest in green growth. Price signals, economies of scale, a level playing field and market access are needed to move forward with eco-innovations. SMEs in particular need help; and
6. Implementation and enforcement is essential: in Europe, eco-innovation policy will be taken forward through a new EU Environmental Technologies Action Plan to be launched before the end of the year.

More information: http://ec.europa.eu/environment/ecoinnovation2011/2nd_forum/index_en.html