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DIRECTORATE GENERAL FOR INTERNAL POLICIES

POLICY DEPARTMENT A: ECONOMIC AND SCIENTIFIC POLICY

WORKSHOP

Resource Efficiency Indicators

Brussels, 14 April 2015

MEETING DOCUMENT

Policy Department A: Economic and Scientific Policy

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Workshop on Resource Efficiency Indicators

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CONTENTS

AGENDA 4

SHORT BIOGRAPHIES OF EXPERTS 6

PRESENTATIONS 9


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Workshopon

Resource Efficiency IndicatorsAGENDA

Workshop organised by Policy Department A - Economy & Sciencefor the Committee on the Environment, Public Health and

Food Safety (ENVI)

Tuesday, 14 April 2015 from 12:45 to 15:00

European Parliament (Brussels), A1E-2Chair: Sirpa Pietikäinen (MEP)

The workshop is organised at the request of the ENVI Committee in connection with its ongoing work onthe own-initiative report on ‘Resource efficiency: moving towards a circular economy’.

12:45 – 12:55 Welcome by the Chair, opening remarks

Part 1: How to measure resource efficiency?

12:55 – 13:05 Synergies between the Green and Growth: the case of ResourceEfficiencyKitty van der Heijden, Director Europe, World Resource Institute

13:05– 13:15 Resource efficiency indicators for a creative economyProf. Markku Wilenius, Finland Futures Research Centre, TurkuUniversity

13:15 – 13:25 Win-Win for both Business and SocietyAnders Wijkman, co-president of the Club of Rome

13:25 – 13:35 Considerations in defining Resource Efficiency Indicators – someresults from the EU FP7 funded projects CREEA and DESIREProf. Arnold Tukker, Director and professor of Industrial Ecology,


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Institute of Environmental Sciences (CML) at Leiden University

13:35 – 13:55 Q&A

Part 2: What is the best set of indicators forsetting up resource efficiency targets?

13:55 – 14:05 A set of resource efficiency indicators under consideration ofindirect flowsMMSc. Stephan Lutter, Vienna University of Economics and Business

14:05 – 14:15 A set of resource efficiency indicators under consideration offactual constraintsMyriam Linster, OECD

14:15 – 14:25 The Resource Efficiency ScoreboardWerner Bosmans, European Commission, DG Environment,Resource Efficiency & Economic Analysis

14:25 – 14:35 Progress on EU resource efficiencyYbele Hoogeveen, EEA

14:35 – 14:55 Discussion with MEPsQ&A

14:55 – 15:00 Closing remarks by the Chair


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SHORT BIOGRAPHIES OF EXPERTS

Kitty van der Heijden, Director Europe, World Resource InstituteDrs. Kitty van der Heijden is the Director of WRI’s Europe Office, representing WRI’s visionand strategy in Europe and facilitating engagement with European governments,businesses, and institutions. Kitty leads WRI’s engagement in the post 2015 DevelopmentAgenda, and also embraces work on the international climate regime; the role of theprivate sector in development; global indicators on resource productivity and efficiency;and inequality.

Prior to joining WRI, Kitty was the Ambassador for Sustainable Development and Directorof the Department for Climate, Energy, Environment and Water in the Ministry of ForeignAffairs of the Netherlands. She was responsible for policy development on environmentalglobal public goods and managing the sizeable aid budget of the Department.

Prof. Markku Wilenius, Finland Futures Research Centre, TurkuUniversity

Markku Wilenius has worked in the field of foresight last 20 years, with fields ranging fromFuture of mobile technologies to culture and climate change. He has acted as a professor offutures studies since 2004 in the Turku School of Economics, today part of University ofTurku. He has led Finland Futures research Centre number of years.

He has led and contributed R&D activities for a number of years (2007-2010) in worldlargest private insurance company, Allianz SE, helping them to take a long view in theirstrategic operations. He has worked with considerable number of Finnish major companiesranging from finance to forest industry.

Today his research interests include long-term socio-economic waves of societies, resourceefficiency, energy policy and circular economy, future of organisations ad future ofeducation.

Anders Wijkman, co-president of the Club of RomeAnders Wijkman is an opinion maker and author. He is co-president of the Club of Rome,chairman of the Swedish Association of Recycling Industries and senior advisor to theStockholm Environment Institute. In January 2015 Anders was appointed chair of theSwedish Cross-Party Committee on Environmental Objectives. The most immediate task isto develop a strategy for a low-carbon society in 2050.

Anders has served as a Member of the European Parliament (1999-2009, asAssistant Secretary-General of the United Nations and Policy Director of UNDP (1995-1997)and as Secretary General of the Swedish Red Cross (1979-1988).

Anders is a member of the Swedish Royal Academy of Sciences, the World Future Counciland the International Resources Panel. Anders is honorary doctor at Linköping University(2011).

His most recent book ”Bankrupting Nature” – with co-author Professor Johan Rockström –was published by Routledge in November 2012.

Born in 1944, Anders Wijkman is married and has three children.


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Prof. Arnold Tukker, Director and professor of Industrial Ecology,Institute of Environmental Sciences (CML) at LeidenUniversity

Arnold Tukker is since 1 October 2013 the Professor of Industrial Ecology and Scientificdirector of the Institute of Environmental Sciences (CML) at Leiden University. At TNO, alarge Dutch not for profit research organization he retains a 30% position as seniorresearcher. He further was from 2010-2014 a part time professor of Sustainable Innovationand NTNU, Trondheim, Norway.

Arnold set up prominent EU projects in the field of sustainable product design (SusProNet)and sustainable consumption and production (SCORE!) and was core member of the 10Million Euro Dutch Knowledge Network on Sustainable System Innovations. He currently co-ordinates a string of programs of some 15 million Euro in the field of resource-efficiency,a.o. constructing the world’s most ambitious and detailed global energy/resource/economicinput-output databases and models (EXIOBASE). He authored 6 books, 47 refereed papersand 7 special issues on sustainability research. He has been engaged with work of the UNon the Green Economy Initiative, the Resources Panel, the Ten Year Framework ofPrograms on Sustainable Consumption and Production, and Sustainable DevelopmentGoals.

MMSc. Stephan Lutter, Vienna University of Economics and BusinessStephan Lutter is deputy head of the research group “Sustainable Resource Use” at theInstitute for Ecological Economics, Vienna University of Economics and Business, Austria.He graduated in Environmental Engineering as well as in Natural Resources Management inVienna and New Zealand.

Stephan Lutter works and publishes in the areas of physical accounting (in particular, waterand material flow analysis) and economic-environmental modelling. Focus of his work is seton the development of comprehensive resource use indicators for the application in trade,environmental and development policies.

Myriam Linster, OECDMyriam Linster has more than 30 years of experience in the field of environmentalreporting and assessments and in international environmental policies.

She joined the OECD in 1985, where she heads the OECD’s programme on environmentalinformation and leads the work on monitoring resource productivity and progress towardsgreen growth.

She is a member of the UN Committee of Experts on Environmental Accounting, and hasbeen contributing to international work on sustainable development indicators and to EUwork on indicators and targets under the Resource Efficiency Platform.

She is further involved in country environmental peer reviews, and is an active member ofthe municipal council of her village in France.


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Werner Bosmans, European Commission, DG Environment, ResourceEfficiency & Economic Analysis

Werner Bosmans, a Belgian national, first graduated as a Bio-engineer at the University ofGhent, Belgium, and then did a Ph.D. in international economics in Montpellier, France. Healso holds a degree in Public Management.

After haven undertaken research at the University of Ghent and at the Belgium Ministry ofAgriculture, he worked as assistant to the Secretary-General of the Belgian and then theFlemish Ministry of Agriculture. He is also a part-time professor at the ULB (Université Librede Bruxelles).

In 2005, he joined the Directorate-General Environment of the European Commission inBrussels. He is responsible for Natural Resource policies, promoting life-cycle thinking toreduce environmental impacts. He helped setting up the International Resource Paneltogether with UNEP. He is one of the authors of the Roadmap to a Resource EfficientEurope and coordinated follow-up work, such as the European Resource Efficiency Platform(EREP). He is now focussing on the Circular Economy.

Ybele Hoogeveen, European Environment AgencyYbele Hoogeveen is ecologist by training (University of Groningen, 1985). He was employedfrom 1990 to 1998 by the Dutch Ministry of Agriculture, Nature and Food Quality as seniorpolicy maker and from 1998 to 2001 by Wageningen UR / Alterra as landscape ecologistand policy analyst. Since 2001 he has been working for the European Environment Agency,covering biodiversity, agriculture, future studies and integrated environmental assessment.

Currently Ybele Hoogeveen is head of the group Green Economy, with waste and materialflows, resource efficiency and environment & health as focal areas. He is lead author of theSynthesis report of the European Environment, State and Outlook (SOER) 2015, and of theSynthesis and Global Megatrends report of SOER2010.


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PRESENTATIONS

Part 1: Synergies between the Green and Growth: the case ofResource Efficiency

Presentation by Kitty van der HeijdenAs of time of editing not available

Part 1: Resource efficiency indicators for a creative economy

Presentation by Markku Wilenius

Resource challenge, future and the next waveWorkshop on Resource Efficiency Indicators

organised by Policy Department ATuesday, 14 April 2015 from 12:45 to 15:00

Venue: European Parliament, A1E-2Chair: Sirpa Pietikäinen (MEP)

April 14, 2015. Prof. Markku Wilenius

Finland Futures Research CentreTurku School of Economics


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-10%

-5%

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1st Kondratieff1780-1830Steam engine

2nd Kondratieff1830-1880Railway, steel

3rd Kondratieff1880-1930Electrification,chemicals

4th Kondratieff1930-1970Automobiles,petrochemicals

5th Kondratieff1970-2010ICT

6th Kondratieff2010-2050Intelligenttechnologies

Panic of 18371837-1843

Long depression1873-1879

Greatdepression1929-1939

1st and 2nd oilcrisis1974-1980

Financial crisis2008-20xx

Rolling 10-year return on the S&P 500 since 1814 till July 2014 (in %, p. a.). Source: Datastream, Bloomberg Illustration: Helsinki CapitalPartners

Modern economies fluctuate in 40-60 years cycles...

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K-Waves 1 Wave 2 Wave 3 Wave 4 Wave 5 Wave 6 Wave

Period 1780-1830

1830-1880

1880-1930

1930-1970

1970-2010

2010-2050

Drivers SteamMachine

RailroadSteel

ElectricityChemicals

Auto-mobiles,Petro-chemicals

ICT Intelligent,resourceefficienttechnolo-gies

Primefield ofappli-cation

Clothingindustry

Transport Mass-production

Personalmobility

Produc-tion andcommuni-cation ofinfor-mation

Materialsandenergyproductionand distri-bution

Syklien anatomiaa…The succession of development waves inindustrial societies


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Key trajectoriesfor social change

Keymegatrends

Keyinnovationplatforms

Globalisation:decentralization ofthe power centers

Demographic change implyingaging and longevity Growth of health

services

Digitalization and thedominance of secondeconomy

The rise of thebioeconomy

The expansion of resourceefficient technologies

The rise of complex societies

Web-based empowerment of the people

Maturing environmental concerns

The drivers behind 6th Wave (2010-2050)

Intelligentsolutions

…Why resource efficiency is a keytrend?


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Evidence from the recent past extending to future…


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Trend-like surge of prices among raw materials,commodities and energy…

Strong connection between oil and commodities


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World Energy Outlook 2010

4 Saudi Arabiasare required by2035 to justmaintain currentsupply !- highly unlikely!!

Source: World Energy Outlook 2010, International Energy Agency

…While cheap oil seems to be on the way toextinction…

Source: Roland Berger/WWF

This is why we need radical solutions


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Investments going down with theprice…

How to use resources smarter? Sharingeconomy is on its way….


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"Heavier-than-air flying machinesare impossible.” -- Lord Kelvin,president, Royal Society, 1895.

"There is no reason anyone would want a computer in their home."

-- Ken Olson, president, chairman and founder of Digital Equipment Corp., 1977

"Drill for oil? You mean drill into the groundto try and find oil? You're crazy."

-- Drillers who Edwin L. Drake tried toenlist to his project to drill for oil in

1859.

“I think there is aworld market for

maybe fivecomputers."

-- ThomasWatson,

chairman ofIBM, 1943

"Who the h_ll wants to hear actors talk?"

-- H.M. Warner, Warner Brothers, 1927.

Please be open, radical and ready for change…

Thank you for your [email protected]

www.markkuwilenius.fi


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Part 1: Win-Win for both Business and Society

Presentation by Anders WijkmanAs of time of editing not available

Part 1: Considerations in defining Resource Efficiency Indicators –some results from the EU FP7 funded projects CREEA andDESIRE

Presentation by Arnold Tukker

Resource efficiency indictorsin Industrial Ecology

European Parliament, 14 April 2015

Prof. Arnold Tukker,• Professor of Industrial

Ecology and Director CML• TNO, Netherlands• Leader of 4 major FP7

resource indicator projects(EXIOBASE)


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The sustainability problem

Earth’s Natural system

Resources Emissionsand waste

Society’sEconomicsystem

• 35% of biomass is used• 80% CO2 reduction

needed by 2050• All arable land is used• We have water scarcity• We have depleted fish

stocks

Policy answer: doingmore with less• EU Resource efficiency roadmap

• Chinese Circular Economy and Japanese3R policies

For this, you need anaccounting system• Human Well-being

• GDP

• Resource use…..

• …and emissions

• But including pollution in imports!

.


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Indicator systems – a few too many?• SCP

• Resources

• Greeneconomy

• And manyothers

Eurostat

EEA

EurostatDG ENV

UNEP

OECD

UNECE,Eurostat,OECD

Answer SEEA2013: structure data, not indicators•Separate a Natural system and Socio-economic system•Include ALL resources, land, water + some emissions•Give this by industry sector in an (ideally global) Input-Output Framework

SocialCapital

NaturalCapital

EconomicCapital

Y*,A Y*,B Y*,C Y*,D q

ZA,A ZA,B ZA,C ZA,D YA,A YA,B YA,C YA,D qA

ZB,A ZB,B ZB,C ZB,D YB,A YB,B YB,C YB,D qD

ZC,A ZC,B ZC,C ZC,D YC,A YC,B YC,C YC,D qC

ZD,A ZD,B ZD,C ZD,D YD,A YD,B YD,C YD,D qD

W WA WB WC WD

g gA gB gC gD

CapitalA CB CC CD

LaborA LB LC LD

NAMEAA NAMEAB NAMEAC NAMEAD

AgricA AgricB AgricC AgricD

EnergyA EnergyB EnergyC EnergyD

MetalA MetalB MetalC MetalDMineralA MineralB MineralC MineralD

LandA LandB LandC LandD

Industries

Prod

ucts

C &

LEn

viro

n Ex

t

Biotic materials: FAOEnergy materials: IEAIndustrial minerals: USGS, BGSBuilding materials: USGS, BGSWater, land: FAO

Energy emissions: IEA+emission factorsAgricultural emissions: FAO + fertiliser use+emissionfactorsOther: need dedicated statistics


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Calculating footprints• You know final consumption expenditure per

product

• Since you have all economic relations, youcan calculate added value by sector

• 10 Euro of coffee =

• 5 Euro for Starbucks

• 3 Euro for the roaster

• 1 Euro for transport

• 0,50 Euro for the farmer in Costa Rica

• 0,50 Euro inputs to the farm

• You also know emissions / Euro / sector =>simple multiplication gives you emissions +resource use in the chain

.






W WA WB WC WD

g gA gB gC gD

CapitalA CB CC CD

LaborA LB LC LD






Industries

Prod

ucts

C &

LEn

viro

n Ex

t

From there you can build all indicators needed

.•Here: carbon, water, land, materials, but many others possible (e.g. LCIA)•Territorial pressures and footprints by country•Pressures by industry sector and footprints by product category•Compared to e.g. GDP, Human development index, industry added value, etc.


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HDI and happiness versus footprint

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The best set? Wait 11 months (DESIRE project)

Correlationanalysis of 140

indicatorsidentifying the 4-

5 with most‘saying power’

•Likely: carbon, water, land, materials, or some variation on this•In the following forms

•Absolute country or per sector totals•Per capita, compared to GDP or sector added value•Compared to HDI, or another ‘beyound GDP’ indicator


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How to realise• Environmental data per economic sector

• Resource extraction (FAO, USGS, IEA)

• Land use, water use (Corinair, FAO)

• Emissions => better allocated by sector

• => harmonization via UNEP IPR, IPCC,EEA, EUROSTAT desirable

• Economic Input-output data by country linkedvia trade

• Europe (EUROSTAT):

• Supply and use tables provided;maybe more detail in future

• ‘Valuation layers’ Use table missing,best mandatory transfer

• World: support for UN Statistical division

• At some point physical input-output = ultimateresource efficiency per sector

.






W WA WB WC WD

g gA gB gC gD

CapitalA CB CC CD

LaborA LB LC LD






Industries

Prod

ucts

C &

LEn

viro

n Ex

t


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Part 2: A set of resource efficiency indicators under consideration ofindirect flows

Presentation by Stephan Lutter

A set of resource efficiencyindicators under consideration ofindirect flows

EP - Workshop on Resource EfficiencyIndicators 14.04.15

Stephan LutterVienna University of Economics and Business

What is the best set of indicators forsetting up resource efficiency targets? Four categories to measure resource use

and efficiency The added value of consumption-based

indicators Overview of the state of the art of

indicators Conclusions

Content


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Main categories of resourceuse

Greenhouse gas emissions

Water

Abiotic materials (incl. fossil fuels)

Biotic materials

Land area

Taken up into the EC‘s „Roadmap for a resource efficient Europe“

Territorial and footprint-typeindicators

TerritorialIndicators(Production)

FootprintIndicators(Consumption)

Examples Material extractionWater abstractionLand useGHG emissions

Material footprintWater footprintLand footprintCarbon Footprint

Advantages

Dis-advantages


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Resource use Processing Trade flows Consumption

virtual resource flows

Including indirect flows

Global supply chains





Advantages Solid data basis & data quality high acceptance amongstatistical offices & policymakers

Dis-advantages

Illustrate only nationaldimension not robustagainst outsourcing


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Material footprintWater footprintLand footprintCarbon Footprint

Advantages Solid data basis & data quality high acceptance amongstatistical offices & policymakers

Illustrate global dimension robust against outsourcing increasing demand for solidresults

Dis-advantages

Illustrate only nationaldimension not robustagainst outsourcing

Data via modelling approaches,less control of data quality acceptance among statisticaloffices & policy makers to befurther improved

Materials

Sources: Tukker et al. 2014; Giljum und Lutter, 2014

Metals(6,7 billion tonnes)

Extraction Consumption

EU … Europe; USA … United States of America; APAC … Asia/Pacific; CN … China; CAN … Canada;LAM … Latin America; AUS … Australia; ME … Middle East; AFR … Africa

All materials(66 billion tonnes)

Extraction Consumption


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Water

Blue water consumption induced by EU27 final consumption inthe year 2007

Source: Lutter et al. forthcoming

Materialsbiotic abiotic

Water Land GHG

?

Detecting trade-offs


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Target setting based onconsumption-based indicators

Material: Different scenarios for EU’s resource productivity measured in

GDP/RMC (EC 2014)

Water: Quantifying the EU’s contribution to global water stress

Land: Suggestion of zero net imports of embodied land

GHG emissions: Target discussions mainly for the territorial level

Conclusions

In order to detect trade-offs and design sound policies, resourceuse and efficiency have to be measured and the for main categoriesof natural resources taken into account.

Only including indirect flows provides the complete picture andensures robustness of European (resource) policies.

Methodologies are at hand or in development to be applied on thenational as well as global level for the four main categories.

Currently, the topic of resource efficiency is at risk of being skippedcompletely by the EC. But instead further developments have to besupported to improve data availability and applicability.

The EP should actively push the further development of theresource efficiency agenda.

Institute for Ecological Economics

Welthandelsplatz 1, 1020 Vienna, Austria

Stephan Lutter

T +43-1-313 [email protected]


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A set of resource efficiency indicators under consideration of factualconstraintsAs of time of printing not available

The Resource Efficiency Scoreboard

The Resource Efficiency Scoreboard

Werner Bosmans

DG Environment

Brussels, 14 April 2015

Growth of the World Economy

19502010

2050


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raw materials: metals,minerals-fuels-biomass

ecosystems–biodiversity– water –land and soils –air – marine resources

Resource efficiency:Doing more with less

= Producing more value while living,producing and consuming within thephysical and biological limits of the planet

• Europe 2020 Strategy for smart, sustainableand inclusive growth Resource Efficiency Flagship Initiative Roadmap to a resource efficient Europe Europe 2020 mid-term review European Semester

• 7th Environment Action Programme

Towards a circular economy for Europe


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Roadmap to a resource efficient Europe• Three time lines

• long term 2050 vision• milestones for 2020• actions to be taken now

• Three action lines• Shifting to a green, circular economy• Safeguarding natural capital• Tackling key sectors: food, buildings, mobility

• A shared responsibility of the EU and MS level• Governance and monitoring under Europe 2020

Relatedindicators

Some criteria for indicator choice

• Link economy-environment

=> resources!

• Timelines & recent data

• Data on MS level

• Easy to grasp & communicate

• Limited set

• Existing indicators

• Accepted sources (Estat …)

• Accepted methodology

• Domestic vs. international

• Absolute vs. relative values

• Resource use vs. impacts

• State vs. policy instruments

• Proxy if not available

RACER: Relevant, Acceptable, Credible, Easy, Robust


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HEADLINE INDICATOR

IndicatorLand

IndicatorMaterials

IndicatorCarbon

IndicatorWater

RESOURCE EFFICIENCY SCOREBOARD(EUROSTAT, annual since 2013)

DASHBOARD

EU Resource efficiency scoreboard

Resourceproductivity


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Resource productivity(PPS/kg), 2013

Water exploitation index 2011 or latest available


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Environmentaltaxes (%) 2002 and 2012

Eco-innovation


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Green jobs In addition to the scoreboard

Eurostat Eurobase:http://ec.europa.eu/eurostat/web/europe-2020-

indicators/resource-efficient-europe

2014 Highlights:http://ec.europa.eu/environment/resource_efficiency/

documents/re_scoreboard.pdf

Resource Efficiency @ EC:http://ec.europa.eu/environment/resource_efficiency/

[email protected]

Thank you for your attention!


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Progress on EU resource efficiency

Resource efficiency indicatorsFrom an environmental perspective

Ybele Hoogeveen

EP workshop 14 April 2015

Human well-beingEcosystemresilienceResource eff.Waste prev.

EEA approach - Themes

Waste mgmt.

Circular economy focusGreen economy focus

Waste acquis RE Roadmap 7th EAP


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EEA approach - Assessment

Food

Water

Energy

Housing

EEA aproach - Circular economy


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Decoupling

Global material use


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Global decoupling

Source: SERI 2012

Use of biomass

Source: EEA, SOER 2010


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Planetary boundaries

Source: Rockstrom et al, 2009

Waste and material flows – EU27, 2012


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Waste generation

Note: Geo coverage for manufacturing and services waste, manufacturing and services gross value added: EU-28 plus Norway; for municipal waste generation andhousehold expenditure: EEA-33. Values for Croatia are missing in manufacturing and services waste generation for 2006.Data source: Eurostat

Raw materials use – EU27

Data sources: Eurostat. Material flow accounts; Eurostat. Material flow accounts in raw material equivalents - modelling estimateNote: RMC data are only available for the EU-27. For comparability, the DMC data in this figure covers the same countries.


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Material use (DMC) per capita

Data source: EUROSTAT MFA database

Energy consumption – EU28

Source: EEA SOER2015


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Renewable energy (share of EU28 energy consumption)

Geographical scope: EU-28. Data sources: Eurostat. Supply, transformation, consumption - all products - annual data (nrg_100a);Eurostat. Supply, transformation, consumption - renewable energies - annual data (nrg_107a); EEA – Indicator ENER029

Footprint – pressures exerted outside EU borters

Data sources: JRC. Global Resources Use and Pollution, Volume 1/Production, Consumption and Trade (1995-2008)Note: The footprint relates to total final demand, comprising household and government consumption and capital investments.


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Share of imports in DMI, EU27 (2000-2012)

Data source: EUROSTAT MFA database

Gaps – both in assessment and policy

• Strategic focus (critical materials from an environmental angle)

• Bio-mass and impact on natural environment

• Impacts on human well-being

• Systems approach (food, water, energy, housing)

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