Danish Environmental Exports of
|
Discharges of environmentally hazardous substances must be minimised | |
Discharges of other substances can be permitted if the aquatic environment is not harmed | |
To protect the aquatic environment, discharges of organic matter, nitrogen and phosphorus from large-scale wastewater treatment plants must be cut to specific limit values |
Wastewater is cleaned in wastewater treatment plants and either discharged to waterways, lakes or the sea, or allowed to seep into the soil. The substances found in wastewater are partly substances already found in the environment and partly contaminants. In Denmark much is being done to limit such contaminants, in particular, for example by replacing them with more environmentally
friendly substances or by eliminating them at the source. At wastewater
treatment plants the undesirable substances are either degraded or separated off, so that the water discharged causes no harm.
Originally, the principle was that the wastewater had to be cleaned in wastewater treatment plants unless it could be sent straight out into "robust recipients", such as the sea, which was thought to be able to decompose the pollutants without doing any harm. Later on it was discovered that this was not sufficient.
In 1987 the Folketing adopted the Action Plan for the Aquatic Environment I, setting out reduction requirements for effluent and establishing a national monitoring programme.
The Action Plan for the Aquatic Environment has meant that all large Danish wastewater treatment plants between 1987-96 were extended to remove organic substances, phosphorus and nitrogen. This extension has cost more than EUR 1.21bn. The Action Plan for the Aquatic Environment was the first of its kind in Europe and has been significant in the preparation of the EU wastewater directive of 1991.
More than 90% of all wastewater from households and 80% of industrial wastewater are discharged into the municipal sewerage systems. More than 86% of the wastewater is cleaned for phosphorus and nitrogen, which is the highest figure in any country.
Large industries often have their own wastewater treatment plants, cleaning the discharges in the same way as municipal discharges.
3.2 Drinking water
As far as drinking water is concerned, Denmark is privileged in that
virtually all its drinking water can be drawn from the subsoil. The
groundwater pumped up from the subsoil requires only light treatment (aeration
and filtration) before it is fit for use as drinking water. In Denmark we
live on top of our drinking water.
Danish groundwater policy is based on prevention and effort at the source. As a result, Danish groundwater resources need to be safeguarded against additional contamination, and preventive efforts must be assigned higher priority than subsequent cleaning. As a point of departure, it is aimed to provide a generally high level of protection for all groundwater.
Many steps have already been taken to protect the groundwater. Recent years have seen bans issued on some 170 crop sprays because they are particularly hazardous to the groundwater, and limits have been set for the amount of livestock manure that may be used on fields. New spraying agents are subject to much more rigorous approval than previously, and the county authorities have designated areas of special drinking water interest, taking account of the volumes and quality of the groundwater and the need to safeguard it.
For some time the authorities have also been removing old deposits with chemicals, a work which now receives special attention in areas with special drinking water interests.
In 1998 the Folketing adopted the Action Plan for the Aquatic Environment II, further intensifying the effort to protect groundwater. The plan implies that the counties now must identify target areas, primarily in areas of special drinking water interests and for these areas, initiaties are to be developed, describing in detail protective measures to be taken.
The instruments used in implementing the action plans are primarily voluntary agreements with farmers about a change in land use. However, it is also
possible for counties or municipalities to impose availability constraints. The waterworks and hence the consumers they serve will normally be ordered to pay financial compensation.
4.0 Danish environmental exports within the water sector
4.1 Product exports
The value of product exports to the water sector was calculated in 1998
as EUR 0.22bn., equal to 0.5% of Denmarks total exports in 1998.
Companies exporting to the water sector employed a total of 4,400 people in Denmark in 1998, and the value of their exports made up 63% of their total turnover. Exports from the water sector thus create employment for 2,800 people in Denmark. To this can be added a proportion of the 1,800 people employed by the same companies at workplaces abroad.
A total of 46 companies regarded as exporters of products to the water sector were asked about the size of their exports. 29 of these companies state that they exported products to the water sector in 1998. Calculated by value, exports to the water sector come mainly from very few companies. Five companies thus account for more than 80% of exports:
AVK INTERNATIONAL | |
Grundfos | |
HV-Turbo | |
Krüger | |
Per Aarsleff |
Half of the product exports involves water supply, 43% originate from products for groundwater boring and pipeline networks, while 7% are products for water treatment (oxygenation, filtration and dosing equipment). Exports concerning wastewater account for an amount roughly the same size as water supply. 35% of exports come from products for wastewater and sludge treatment, and 14% from products for sewerage. None of the companies asked exported products in 1998 for the soil and groundwater environment or for analysis, measurement and control. Other products make up 1% of entire exports.
Two thirds of the entire product exports to the water sector go to Europe: 36% to the Nordic countries, Germany and Great Britain, 19% to the rest of Western Europe, and 12% to Central and Eastern Europe. 17% of exports go to Asia and 11% to the USA, Canada, Australia etc. Africa accounts for 4%, and South and Central America for 1%.
Viewing the country distribution of exports and the breakdown by product type simultaneously, the greatest individual export item is products for groundwater boring and pipeline networks in Western Europe. It covers a quarter of the entire exports to the water sector. Product exports for groundwater boring and pipeline networks in Asia and the USA, Canada, Australia etc. each accounts for an additional 6-7% of total exports.
The second-largest individual item is the exports of products for wastewater and sludge treatment in Western Europe, making up 17% of total exports. It is also worth noting that 9% of total exports, or one quarter of product exports for wastewater and sludge treatment, goes to Asia.
Geographically, the exports of products for water treatment are somewhat less concentrated on local areas and more spread over the regions than other products, but just as for sewerage products it is true that Central and Eastern Europe accounts for a proportionately large share of exports in the product line (just under 30%).
4.2 Consultancy exports
The value of consultancy service exports to the water sector in 1998
was calculated at EUR 43m.
Consultancy companies exporting to the water sector in 1998 employed a total of 4,400 staff in Denmark, and exports comprised 11% of their total turnover. Exports thus provide employment for 500 people in Denmark. To this can then be added a share of the 1,800 people employed by the same companies at workplaces abroad.
The questionnaire was sent out to a total of 29 companies considered to export consultancy services to the water sector. 12 of these companies state that they exported consultancy services to the water sector in 1998. Of the consultancy companies, four account for more than 80% of entire exports of consultancy services:
Carl Bro | |
COWI | |
Krüger | |
Rambřll |
40% of consultancy service exports pertain to water supply and 40% to wastewater. The last 20% pertain mainly to other consultancy, i.e. consultancy to authorities etc.
Consultancy exports for water supply is divided between 24% on water
treatment and 17% on groundwater boring and pipeline networks. Consultancy regarding wastewater is divided between 29% on wastewater and sludge
treatment, and 11% on sewerage.
Geographically, Central and Eastern Europe is entirely dominant, accounting for 36% of total exports. Apart from 3% of exports going to the American continent and Australia, remaining exports are divided equally between Western Europe, Africa and Asia, with 20% for each of the continents.
Looking simultaneously at the type of consultancy services and their geographical distribution, the largest individual item is exports of consultancy regarding wastewater and sludge treatment to Central and Eastern Europe, amounting to 19% of total consultancy exports or two thirds of consultancy exports regarding wastewater and sludge treatment.
The second-largest item is the export of consultancy regarding water treatment to Africa, making up 9% of total exports. Water treatment also plays a major role for exports to Central and Eastern Europe (6%) as well as Asia (4%). Consultancy exports regarding groundwater boring and pipeline networks go primarily to Asia (7%) and Africa (4%).
Although the figures involved are small, there is a little consultancy export regarding the soil and groundwater environment to Central and Eastern Europe and regarding analysis, measurement and control to Africa.
5.0 The Danish spheres of excellence
According to the OECD (1992) the total market for environmental protection will grow with 5-6% annually and is expected to reach USD 300bn in 2000.
In 2000 the US market is expected to be the largest national market with 38% of the total market. The European market is expected to constitute 26%, Japan 13% and others 23%. Divided into markets according to use, the distribution is as follows: water and wastewater 28%, waste 21%, air 14%, other equipment 11% and services 27%. The OECD expects that the world market for water and wastewater products will amount to USD 54bn in 2000.
Denmark possesses certain spheres of excellence within products and
consultancy services which may be expected to be in demand on the world market for water and wastewater in the coming years.
Denmark shows great strength in the export of important components and turnkey plants to the water sector. This applies especially for valves, pumps, aeration equipment for treatment plants, sludge dewatering equipment, turnkey waterworks and treatment plants and sewer restoration technology. The main part of the export is to the western countries. But the coming enlargement of the EU with the countries of Central and Eastern Europe is expected to create a new market for Danish exports since large funds (EUR 500m annually) are channelled as subsidies to construction of new wastewater plants in these countries through the new EU ISPA-programme. Danish companies are well prepared to be part of this task because the Danish environmental assistance programmes have allowed the companies to gain experience in exporting to these countries.
Large Danish consultancy companies dominate exports of consultancy services in the sector. The main part of the companies exports consists of services to Central and Eastern Europe and developing countries, financed by Danish and international assistance programmes and development banks. The funds for these programmes are expected to increase in the coming years. Danish consultancy companies are large by international standards and have great experience in developing projects in co-operation with the international development banks and organisations. The Danish environmental assistance
programmes have also allowed Danish consultancy companies to gain
experience in working with environmental problems in these markets and they are therefore well prepared to participate in the competition for future international project export.
Appendix 1
Demarcation of the water sector
In order to calculate Danish environmental exports in the water sector,
it has been necessary to consider how the sector should be defined. Based
on the official statistics, it is not possible on the basis of either
in-trade or goods nomenclatures to define the water sector, neither for
the supply sector nor for the wastewater sector. In addition there may
occasionally be doubts as to whether a given line of production belongs
under the environment or the energy sector.
In in-trade nomenclatures, physico-economic units are classified by the principal end product of the workplace. That means, for example, that the manufacture of scrap-based iron and steel products is placed under Iron and steelworks, the manufacture of pulp from waste paper under Pulp manufacturing, recycling of waste oil for the manufacture of fuel oil under Mineral oil industry etc., and the desulphurization of gas under Extraction of crude oil and natural gas etc. Consequently, biogas plants are listed under the energy sector (Gas supply) and the disposal of chemical waste by incineration is allocated to the environment sector (Landfills and waste incineration facilities).
Looking purely at the demarcation of an individual sector, there seems to be a general trend to make the sector rather capacious, i.e. to include areas which, seen in isolation, other sectors of society feel belong to their area. That can be convenient, of course, for anyone wishing to demarcate a specific sector, but it is not workable for statistical computations. Traditionally, for instance, building insulation is regarded as an activity within the building and construction sector, but some people today feel it belongs under the energy sector and others think that insulation is an activity at home in the environment sector. In the same way, windmills and biogas plants are sometimes listed under the environment sector and sometimes under the energy sector.
Before undertaking a more detailed demarcation of the water sector on the basis of products, companies, trades etc., it may be useful to lay down some more general guidelines for delineation between the environment and energy sectors.
Delineation between the environmental and energy sectors might be based on end-products/services:
In the environment sector, a waste product or an unusable/hazardous product is converted into an intermediate, which can either be used as a raw material in the processing of a more valuable finished article, or may in its own right constitute a product that can be left in a natural setting without any major risk of unwanted effects. | |
In the energy sector, raw materials are extracted or a raw material (e.g. coal) is transformed into another and more useful energy product (e.g. electricity). Energy products differ from other products in that they lose their value when spent, leaving merely a waste residue behind. |
Another important distinction in this context is to differentiate between primary production and secondary production. This is a principle generally applied in the sectoral classification of enterprises also.
Finally, a distinction needs to be made here between on the one hand companies carrying out environmental and energy production, and on the other hand suppliers of products and services for these companies.
In demarcating the water sector, it was decided in this study to include only commercial environmental production. It was therefore decided to define the limit for the water sectors, in popular terms, at the garden gate to private households. For example, exports of water meters for domestic water consumption have not been included in the inventory. Hence, the demarcation of the sectors involved was based on an operational approach.
Operational demarcation
Operational demarcation of the water sector includes the categories below. The categories were used in the questionnaire on which the study was based.
Groundwater boring and pipeline networks | |||
Groundwater boring | |||
Pumps, pipes | |||
Pipeline networks | |||
Pipes, grates, fittings, valves, pumps, tanks, cowers | |||
Water treatment | |||
Fans, aerators,
filters, softening equipment, disinfection equipment, chemicals |
|||
Soil and groundwater environment | |||
Drilling gear, in-situ
soil remediation, pumps, landfill membranes |
|||
Analysis, measurement and control | |||
Monitoring equipment,
control systems, analysis equipment, leak detectors |
|||
Sewerage | |||
Pipes, grates,
fittings, valves, pumps, oil separators, tanks, covers, sewer renovation |
|||
Wastewater and sludge treatment | |||
Wastewater treatment | |||
Pipes, grates, grit
traps, oil separators, fans, aerators, pumps, scrapers, mixers, dosing systems, chemicals |
|||
Sludge treatment | |||
Dewatering equipment,
tanks, mixers, gas installations, incineration plants, spreading equipment, composting plants |
|||
Other | |||
Consultancy services for authorities etc. |
Appendix 2
The survey
The study was carried out in tandem with a similar study for the Danish
Energy Agency on export of technology and know-how from the energy sector
(Eksport af produkter til energisektoren (Export of products to the energy
sector) 1998, Energistyrelsen (DEA), September 1999). In this connection a
number of methodological changes have been made.
How the survey was arranged
The point of departure for the study is a postal enquiry method that
has been used twice before, virtually unchanged, to survey exports of
products and consultancy services for the energy sector. In connection
with the decision to expand the study so as also to include exports to the
water sector, a number of methodological changes were made with respect
to:
1. Export destinations
2. Random sampling of companies
Both members and non-members of the Confederation of Danish Industries and the Danish Council of Consulting Architects and Engineers | |
Considerable reduction in size of random sample | |
Companies with mixed product/consultancy exports |
3. Questioning
Time of questioning | |
Recent years export sales only | |
Workplaces at home and abroad |
4. Publication
Exports to the water sector as well as to the energy sector
Previous studies included only the energy sector. The present study
also includes the water sector. Since there is a certain overlap between
the two sectors, it has been necessary not only to further clarify the
definition of the sectors but also to complicate the questioning by
sending some companies questionnaires concerning both sectors. About 1/5
of the companies involved in the present poll were sent questionnaires on
the energy sector as well as the water sector.
Results and catalogue of exporters
In the present study, companies were given the offer of being listed in a
catalogue of export companies in the water sector, listing their name,
address, telephone, fax, e-mail and homepage, and a brief corporate
description (200 characters) and five main products/product lines. The
information is gathered on a special questionnaire in both Danish and
English. In addition, the
companies would receive the results of the study.
How questioning was conducted
The final random sample consists of 157 companies, 111 product
companies and 43 consultancy companies as well as 3 companies that are
both product and consultancy companies. Based on the questionnaires they
received, the companies are broken down as follows:
Product questionnaires were sent out with a covering letter on the Confederation of Danish Industries headed notepaper (enclosing an SAE), while consultancy questionnaires were sent out with a covering letter on the Danish Council of Consulting Architects and Engineers notepaper. Both questionnaires were sent out on April 12, 1999. The questionnaires were numbered and were to be returned to the relevant professional body. The companies were guaranteed that any information disclosed would be treated with the utmost confidence, as an independent opinion poll institute would be doing the statistical processing, allowing no information about individual companies to be derived from the final tables. It was requested that all questions regarding the study and completion of the questionnaire be addressed to Mr. Bjarne Ruby, consultant at the VIBY Analysis Institute.
Within three weeks, 17% of the companies involved in exports answered the enquiry. Following the despatch of a new copy of the questionnaire together with a chaser on May 3, 1999, the reply rate reached 49% three weeks later. During the next two months the remaining companies were chased up to 5-6 times over the phone. A further 33 questionnaires were sent out and 53 received. The completion rate for the study as a whole was 88%, but varies between the sectors from 75% to 92%, as shown in the table below
Appendix 3
Exporters of products to the water sector
Appendix 4
Exporters of consultancy services to the water sector