Despite progress in some areas, Europe must do more to create the 'green economy' needed for the continent to become sustainable, according to a new report from the European Environment Agency (EEA).

Copenhagen, May 16, 2012 -Green economy is set to be one of the two main themes at the  United Nations Sustainable Development Summit in Rio de Janeiro in June this year. Simply put, a 'green economy' is one in which environmental, economic and social policies and innovations enable society to use resources efficiently, while maintaining the natural systems that sustain us.

'The focus on green economy in Rio reflects the issue's importance as a key environmental priority, and is particularly timely, given that it can provide a path to renewed economic growth and job creation in response to the current severe economic crises facing Europe,' EEA Executive Director Jacqueline McGlade said.

The 'Environmental indicator report 2012' presents established indicators that illustrate progress towards improving resource efficiency, and indicators that depict the risk of passing environmental thresholds. Jointly, they enable policymakers and the public to reflect on where Europe stands vis-à-vis some aspects of a green economy.

The green economy is one in which environmental, economic and social policies and innovations enable society to use resources efficiently, thereby enhancing human well-being in an inclusive manner, while maintaining the natural systems that sustain us. At its core is the twin challenge of improving resource efficiency whilst ensuring a resilient structure and functioning of ecosystems that can deliver the many ecosystem services we rely on.

Several of the indicators presented in this report show encouraging trends, while others point to issues that require urgent attention.

European environmental policies have helped Europe use resources more efficiently. However, policies aimed at making ecosystems more resilient have been less successful. Both are central to Europe achieving a green economy and becoming sustainable, according to the report.

The report emphasises that improving resource efficiency remains necessary, but stresses that this in itself may not be sufficient to ensure a resilient, sustainable natural environment.

In some cases, reduced ecosystem resilience may even be irreversible, for example biodiversity loss leading to species extinction, or when environmental or climate tipping points are passed.

Following these findings, the report also considers the merits of designing policy objectives and targets that more explicitly address the links between resource efficiency, ecosystem resilience and human well-being to support the transition to a green economy.

Key findings

The report uses well-established environmental indicators, assessing progress towards a green economy along six environmental themes.

• Nitrogen emissions and threats to biodiversity: progress has been made to reduce pollution causing acidification and eutrophication. However, nitrogen emissions from sewage and agriculture remain high, and these pollutants continue to damage ecosystems and habitats.
   
• Carbon emissions and climate change: domestic greenhouse gas emissions have decreased substantially across the European Union but continue to rise on the global level. Rising temperatures threaten ecosystem resilience.
   
• Air pollution and air quality: air pollutant emissions have decreased in many parts of Europe; nonetheless, poor air quality is still a serious health issue, particularly in many cities.
   
• The marine environment: overfishing, shipping and other maritime activities put pressure on the marine environment; leading to altered, often less resilient marine ecosystems.
   
• Stress on water resources: managing water use and demand has helped reduce water use in all sectors; but high levels of water stress still endanger ecosystems in European water bodies. This problem is exacerbated by climate change and inefficient water use in some areas.
   
• Use of material resources: there has been progress in 'decoupling' economic growth and material resource use. However, overall consumption and production patterns are not sustainable.

The report notes that a transformation to a green economy in Europe encompasses multiple dimensions. At the core of a transformation to a green economy is the integration of economic and environmental policies in a way that highlights the opportunities for new sources of economic development, while avoiding unsustainable pressure on the quality and quantity of natural capital.

At the same time, such a transformation has the potential to enhance social equity and fair burden-sharing in policy design, the sharing of environmental costs and access to environmental benefits. It directly influences three main dimensions of human well-being: 

• Social equity in today's Europe: for example, ensuring fair access to the benefits of nature and protection from the impacts of pollution and health risks; 

• International burden-sharing: for example, by addressing hidden ecological costs in trade, fair shares in carrying environmental burdens, and environmental footprints of consumption; 

• Intergenerational aspects: for example, by addressing the natural and social capital stocks that we pass on to future generations and the discount rates used in the context of long-term economic projects and environmental policies. 

It is worth noting, states the report, that a transformation to a green economy implies a departure from the 'business as usual' economic paradigm, which is socially and economically unsustainable.*

A green economy can create new opportunities, in particular related to new jobs across many sectors of the economy or through a substitution process by shifting jobs from industries that rely on non-renewable resources (such as fossil fuels) to those that rely on renewable resources (such as recycling industries) fishing, energy, resource-intensive manufacturing, recycling, building and transport.

The Environmental indicator report 2012' can be downloaded from here.

*Editor's Note:     A recent report on the West Coast Clean Economy undertaken by GLOBE Advisors and the Centre for Climate Strategies (and published on behalf of the Pacific Coast Collaborative in March 2012) contains a comprehensive discussion on the importance of moving away from 'business as usual' policies and programs.  Check here for more information on the West Coast Clean Economy Report.