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Clean technologies

OVERVIEW:

Progress on clean technologies has been too slow

So far, progress in the area of clean technologies has been too slow to be consistent with reaching climate neutrality in the EU by 2050, both in terms of the pace of developing new technological solutions and increasing cleantech manufacturing capacity. Future improvement is possible, as signaled by the acceleration in private investments and positive trends in the academic research basis, as well as a renewed policy push at the European level to address both financial and non-financial barriers to cleantech development.

BRIEFING

Is European cleantech on track for net zero? A question of finance

NOVEMBER 2023. This briefing examines the current state of EU cleantech from lab to market. The ECNO flagship progress report found that progress in the cross-cutting sector of cleantech has so far been too slow. The briefing's author, ECNO expert Ciarán Humpreys, sheds light on the role of finance in accelerating progress to become in line with the EU's 2050 climate neutrality target.

Read the briefing

INSIGHT ONE

Both the capacity of the clean industrial base and cleantech innovations have been developing too slowly

The value added in the management of energy resources and protection of ambient air and climate improved rather steadily between 2015 and 2020, and the sector’s growth amounted to an average annual increase of 4.6%. However, given the scale of the necessary increase in the local manufacturing of cleantech goods, announced under the EU Net Zero Industry Act, the dynamic of this indicator is too slow to meet the needs of a climate neutral economy. Simultaneously, the indicator measuring eco-innovation related patents points in the wrong direction, and thus progress on both cleantech objectives was found to inadequate.

INSIGHT TWO

Securing future cleantech progress needs more robust investments in energy and environmental R&D

More consistent policies stimulating both governmental and private investment in energy and environmental R&D activity, as well as in cleantech manufacturing, could facilitate reaching objectives in the area of cleantech. Such policies have already been announced in the Green Deal Industrial Plan for the Net Zero Age and the EU's Net Zero Industry Act. Their rapid implementation should be a priority for the EU to be able to meet its net zero pledge.

INSIGHT THREE

Green public procurement remains an underutilised tool

Green public procurement (GPP) remains an important area for improvement. Available data suggest that this tool could be leveraged far more than it is now. Given the strong position of governments in green goods markets, and their high share in total consumption on the macroeconomic level, GPP should play an important role in incentivising growth in cleantech manufacturing capacity. This would also support decarbonisation in the industry sector. Setting ambitious targets in terms of GPP and the establishment of a sound monitoring framework are among the necessary policy actions which would promote tje higher uptake of GPP.

OBJECTIVES

Objectives describe what needs to be achieved in each building block to reach climate neutrality.

Objective 1

Increasing the capacity of clean industrial base

While the value added in relevant categories of the environmental goods and services sector increased steadily between 2015 and 2020, a faster growth rate is needed to meet the rising demand implied by the transition to a climate neutral economy.

Progress on this indicator has been too slow

Value added in management of energy resources and protection of ambient air and climate

Clean Technologies

This indicator shows past development in the value added in the management of energy resources and the protection of ambient air and climate.
The data show an annual increase of 4.6% between 2015 and 2020. This development was heading in the right direction but should accelerate in the future.

Definition

Value added in the environmental goods and services sector in the management of energy resources (CReMA 13) and protection of ambient air and climate (CEPA 1), deflated by the Producer Price Index (PPI)

Objective 2

Pushing the frontier for clean technologies

The number of patents per million inhabitants dropped between 2013 and 2022, which implies a slowing rate of eco-innovation. The changes of the indicator’s values were marginally negatively influenced by population growth, but still driven mostly by a decreasing number of patents. This dynamic should be reversed to further drive the cleantech transition.

Progress in this indicator was heading in the wrong direction

Index of eco-innovation related patents

Clean Technologies

This indicator shows past development in eco-innovation related patents.
The data show an annual decrease of 1.2% between 2017 and 2022. This development was heading in the wrong direction.

Definition

Number of patent applications filed under the Patent Cooperation Treaty in the field of environment-related technologies, climate change adaptation technologies, and sustainable ocean economy invention. The indicator is indexed to the year 2013.

ENABLERS

Enablers are the supporting conditions and underlying changes needed to meet the objectives in a given building block. They are the opposite of barriers or inhibitors.

Enabler 1

Research excellence

The data for this indicator has been insufficient

Researchers working in environmental sciences

Clean Technologies

At present, there are no EU-wide aggregated data on the number of researchers working in relevant areas of the environmental sciences. However, data on the total number of R&D researchers show steady improvement.

Definition

Number of researchers working on environmental and energy R&D

Progress on this indicator has been on track

Eco-innovation related publications

Clean Technologies

This indicator shows past development in the index of eco-innovation related publications per million inhabitants.
The data show an average annual increase of 4.0% between 2017 and 2022. This development is on track, as the indicator’s value nearly doubled over the whole 2013-2022 period.

Definition

Number of scientific publications in the Scopus database with the following keywords in title or abstract: eco-innovation, energy efficient/efficiency, material efficient/efficiency, resource efficient/efficiency, energy productivity, material productivity, and resource productivity. The indicator is indexed to the year 2013.

Enabler 2

Resources for bringing ideas to market and innovation development

Progress on this indicator has been too slow

Funds allocated to energy R&D by governmental sector

Clean Technologies

This indicator shows past development in funds allocated to environmental and energy R&D by governmental sector, relative to GDP [%].
The data show an average annual increase of 4.6% between 2015 and 2020, this development is too slow.

Definition

Financial assets dedicated to R&D activities related to energy, deflated by Producer Price Index (PPI) and relative to GDP.

Progress on this indicator has been far too slow

Private energy R&I spending

Clean Technologies

This indicator shows past development in private energy R&I spending, relative to GDP [%]. No benchmark is available from an official EU source.
The data show an average annual increase of 1.9% between 2014 and 2019. This development is far too slow.

Definition

Financial assets dedicated to R&I activity related to energy allocated by private sector relative to GDP.

Enabler 3

Clean technology uptake

The data for this indicator has been insufficient

Green public procurement as a share of total public procurement

Clean Technologies

At present, there are no EU-wide aggregated data on green public procurement (GPP) as a share of total public procurement.

Definition

This indicator looks at the share of financial resources distributed in public procurement procedures in total financial resources distributed through public procurement, which take into account the environmental impact of purchased goods and services .

Progress on this indicator has been on track

Private investment in clean technologies

Clean Technologies

This indicator shows past development in private investment in clean technologies [EUR].
The data show an average annual increase of 101% between 2017 and 2022. This development is on track.
 

Definition

Financial assets invested in the clean technology sector by private investors

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