Improved resource efficiency to save Europe billions?

Europe – Industry across the EU could derive net benefits of up to EUR 604 billion from improving resource efficiency, according to a new study on behalf of the European Commission by consultancies AMEC and Bio Intelligence Service.

Data compiled for three industry sectors suggested gross benefits in the range of EUR 64 billion to 118 billion in food and drink manufacturing, an average of 11% of turnover per company; EUR 44 billion to 82 billion in fabricated metal products (17% of turnover); and EUR 18 billion to 43 billion in hospitality and food service (10% of turnover).

Extrapolating across European industry as a whole, better use of eco-design, waste prevention and reuse could potentially result in gross savings of EUR 466 billion to 914 billion, the study concludes – or EUR 245 billion to 604 billion net of investment cost. This would equate to between 3% and 11% of firms’ turnover, depending on their take-up of efficiency measures.

‘Scientific knowledge about environmental thresholds and carrying capacity can serve as a starting point for defining acceptable levels of risk and environmental impact on which targets could be set,’ the report observes. Its compilers add that their efficiency projections are based primarily on waste reduction and material use, and exclude energy consumption.

Would-be investors are warned that payback times and predicted financial gains ‘vary dramatically’ between measures. The report says, for example, that for a typical metal fabricator, cutting product weight will pay back far sooner than a reuse and remanufacturing programme, and achieve twice the savings.

The proposed framework for resource efficiency indicators covers four key categories of resource use that can be ‘directly related to the economy’, the report points out: materials, energy, water and land use. Establishing a clear structure will allow countries to ‘track the progress of resource use’ from two perspectives: domestic (territorial) use, and global (life-cycle) demand.

Co-author and project manager Keith Lawton admitted that the report’s methodology had some weaknesses, underling that its conclusions were ultimately ‘a guess – but it is one of the most well-informed guesses we have had to date’. 

To view the report, visit: www.ec.europa.eu/environment/enveco/resource_efficiency/pdf/report_opportunities.pdf

Source: ENDS Europe