| Front page | | Contents | | Previous | | Next |

A shared future - balanced development

11. Industry, trade and services

Initiatives for a sustainable society and initiatives for future welfare must go hand in hand. Funding the welfare society of the future will require that private production will grow and create more wealth. Sustainable development requires that production and consumption is developed so that resource consumption is optimised and adverse environmental and health effects are reduced appreciably. We can achieve this reduction by making it attractive to incorporate environmental considerations not only into company business procedures, but also into every link of the chain from production to consumption and disposal. Companies are playing a key role in bolstering the utilisation and development of environmentally friendly technologies.

Authorities, businesses and consumers have a common interest in working together to create a market where consideration of the environment is central for competition between enterprises, and for consumption of goods and services. Combined with new market-based instruments and voluntary initiatives, market forces will motivate the corporate sector and consumers to participate actively in this development. Regulations in the EU and in Denmark will continue to make up part of the foundation for enterprises' environmental initiatives.

Another objective of the Government is that Danish enterprises and investors can easily document their environmental initiatives and that consumers are allowed easy access to information on environmental impacts from manufacturing processes.

One of the greatest challenges of the 21st century will be to decouple economic growth from environmental impacts.To minimise the adverse environmental effects of production and consumption systematically, we must ensure that companies consider the environment in making their daytoday decisions. Production, recycling and disposal must develop through advances in environmentally friendly technology, innovation and competence building. Research and development of more environmentally friendly technologies must be strengthened through improved cooperation between enterprises and public research institutions, for example via greater inter-disciplinary research groups, centre contracts, commercial researchers, regional growth environments, and other joint public-private development programmes.We must also consider every aspect of the process from "cradle to grave".We must increase cooperation across industries and sectors and find new solutions that reduce environmental pressure and use fewer resources. Another challenge lies in integrating the competitiveness of companies with environmental, social and ethical considerations.

An important task is to maintain our efforts to persuade companies and consumers to give environmental issues higher priority when making decisions on the production and consumption of goods and services. At the same time, globalisation, growing trade and information technology developments are setting a new agenda for environmental policy and the global division of labour.

In this respect, agreements on trading conditions and market regulation under EU auspices are keys to producing, marketing and stimulating demand for cleaner products and services in an open Danish market, a single European market, and a global market. Since Danish companies form part of international supply chains, both EU and international regulations must incorporate environmental considerations. Chapter 8 describes Denmark's international efforts in this respect.

Households can limit their adverse effects on the environment. Individual consumers can contribute to this process by choosing environmentally friendly products and by using and disposing of products in an appropriate manner. Information from authorities and manufacturers must empower consumers to make choices on the basis of environmental and other considerations, thus making respect for the environment a natural part of everyday life.

First and foremost, companies can help by boosting initiatives to develop technologies capable of introducing processes and products that are more environmentally friendly than today. As part of the preparation of an action plan to promote environmentally friendly technologies, the European Commission has indicated a number of economic and institutional barriers to spreading environmentally friendly technologies in markets. Utilising resources more efficiently, avoiding the use of harmful compounds and minimising emissions and discharges into water, air and soil as well as recycling more and limiting waste volumes must be attractive to companies. Equally important, companies should make more information available, allowing environmental information to follow products to consumers and to those who recycle or dispose of products.We must take advantage of the growing role information technology plays in today's service society to create and market environmentally friendly products. Innovation must be promoted through better functioning, environmentally aware markets.

The period following the Rio conference has seen the launch of many initiatives to reduce the environmental impacts caused by companies. Marketoriented instruments have been introduced: environmental taxes, eco-labels and voluntary agreements aimed at reducing environmental impacts and encouraging the use of cleaner products and environmental competencies.

In a number of areas, Danish enterprises have a head start regarding the environment. All pollution intensive companies in the EU are now subject to general regulations based on "best available techniques", which Danish companies are already required to live up to.This gives Danish companies excellent opportunities to benefit from maintaining a high environmental profile and thus gain a competitive edge.

From 1995 onwards, a number of industrial companies have been under the obligation to publish green accounts containing information about environmental impacts and describing environmental aspects. According to a survey, about 40 per cent of all companies have achieved environmental improvements, while about 50 per cent have profited financially from saving resources.The advantages of green accounts can still be expanded to include the world outside of companies.The question of how enterprises can and must report on environmental aspects and social and ethical considerations is increasingly becoming part of the international agenda. This applies for both enterprises, who see reporting as a competitive parameter, and political decision-makers.

The Government will help enterprises and authorities to establish environmental management and develop environmental competences. This will facilitate environmental control and integrate environmental aspects into decision-making processes and day-to-day activities.Today, more than 500 Danish companies have been certified under the international environmental standard, ISO 14001, while about 180 have been registered under the Community EcoManagement and Audit Scheme, EMAS. Moreover, 21 sectororiented environmental management tools have been developed in cooperation with relevant sector associations to help individual enterprises. A good example is the tourism sector.The economic upturn of recent years has spurred a global increase in travel, also for tourist purposes. International tourism decreases the chances of achieving global sustainable development, because it increases the volume of air traffic and adversely affects nature in tourist destination areas. During the past ten years, the Danish tourist industry has increasingly focused on offering nature and environmentallyoriented attractions and activities. A number of schemes such as the Green Key - have been introduced, awarding eco-labels to overnight accommodation facilities. Another scheme, Destination 21, has also been introduced for tourist destinations pursuing sustainable development.The scheme covers the overall production chain for the destination. At the same time, the Blue Flag campaign has drawn public attention to clean and safe facilities at beaches and in marinas.

Denmark has succeeded in decoupling economic growth from environmental impact in a number of areas. During the past ten years, industrial discharges of nutrient salts into aquatic environments have fallen by 60-75 per cent while output has risen by 20 per cent. Industrial consumption of energy has increased by 12 per cent, whereas CO₂ emissions have only risen by 2 per cent. Although improvements have been made, pollution and contamination in some specific fields are mounting in step with economic growth and higher consumption. As a result, the past ten years have seen waste volumes increase as the economy grows, just as companies have been unable to reduce the use of environmentally hazardous and healthimpairing chemicals to the extent technically feasible and desirable in relation to the environment and health.

Cleaner technology has contributed to reducing waste volumes and the environmentally adverse effects associated with the production and consumption of goods. Denmark's "ProductOriented Environmental Initiative" is based on the principle that environmental considerations must be incorporated into every decision involving goods and services from "cradle to grave". This applies to any aspect from design and choice of materials to production, transportation, supply, marketing, demand, use and any subsequent handling of waste. Environmental considerations must figure in all links of the value chain, domestic and foreign. Product panels made up of stakeholders have been established as "think tanks" for new, general market initiatives.

The Government wishes to promote the interplay between enterprise policy and environmental policy aimed at making the environment a competitive parameter for many sectors of Danish trade and industry. A key objective is to encourage corporate self-action in the environmental area.

Up to autumn 2002 the Government will work on a report on the "Green Market Economy".The report will analyse the possibilities of using market oriented measures to promote a better environment. The report will also study opportunities for the development and market distribution of environmentally friendly technologies.

The goal is to enable Danish trade and industry to supply goods and services that satisfy our needs, create increased welfare and individual quality of life, while at the same time safeguarding the environment. The development of environmentally friendly markets with environmental considerations as an important competitive parameter will represent a pivotal part of this. Increased use of market forces to the benefit of the environment will be cost-effective for both enterprises and for society.

The challenge is to create incentives for enterprises as well as society as a whole, to consider the environment, for example through environmental strategies and environmentally friendly innovation. Environmentally conscious enterprises must stand to gain strategic as well as competitive advantages.

Environmentally friendly market development requires, among other things, clear market information, achieved with eco-labels, environmental product declarations and consumer information. Denmark has joined the EU eco-label scheme (the Flower) and the Nordic eco-label scheme (the Swan).This environmental information supports consumers in choosing environmentally friendly products.The goal is for consumers to recognise eco-labels as easily as they recognise the Danish "Ø" label for organic products. Furthermore, consumer confidence in eco-labels must be maintained at the currently high level.

For several years, an objective has been for the public to take the lead and stimulate demand for more environmentally friendly products. This involves the State, counties, and municipalities integrating environmental parameters into their procurement policies. Sustainable development can only be achieved if enterprises are willing to take responsibility. It is imperative that framework conditions make that responsibility attractive.

Objectives and activities in the future

The Government intends to cooperate with market players to establish an environmentally friendly market.This requires the introduction of framework conditions motivating enterprises to make environmental efforts on a voluntary basis, while also boosting their competitiveness. Economic and fiscal control measures will be relevant to achieve this goal. One example is to have prices reflect the actual environmental costs.

The polluter-pays principle is one means of promoting cleaner production and products on reasonable, competitive terms.

Another important tool is environmentally friendly public procurement.This can lead to significant demand and by creating volume in the market it can help reduce the prices of environmentally friendly products. In this process, more ecolabelled products on the market and adequate information motivate consumers to change their habits.

Denmark is to be among the industrialised countries in the forefront of reducing pollution, and impacts on the environment from enterprises must still be limited. Legislation and instruments must be adapted and developed in line with technological advances and market trends, persuading enterprises to increase environmental protection voluntarily.

The Government believes that it is necessary to set minimum requirements for a number of health and environmental issues.The manufacturing industry must be responsible for ensuring that the chemicals used are assessed in relation to their environmental and health impacts. Substances that may be detrimental to the environment or to human health must be eliminated from products and production processes. Substances particularly dangerous to the environment or to health must be phased out completely or partially, while limit values should be raised to reduce adverse discharges and emissions into air, water or soil. This applies to substances such as dioxin and solvents. It will also be necessary to map and reduce volumes of small particles suspended in the air.

There is also a need in other areas to look at how regulation can help sustainable development. For example, this applies to tourism where the interplay between physical planning by counties, and regional and national strategies on tourism must be enhanced, for example through cooperation between the Danish Tourist Board and the Danish Ministry of the Environment.We must safeguard and improve recreational opportunities for tourists, local inhabitants and disabled people, for example by improving access to natural areas from housing and holiday areas.

A life-cycle-based product liability for products' pollution and resource consumption contributes to making enterprises, severally and jointly, assume liability for a product "from cradle to grave". International guidelines for environmental information about enterprises and products should exist to inspire such efforts across national borders.

Apart from eco-labels, environmental information includes environmental product declarations, environmental guidelines for public buyers, environmental reports, green accounts and information systems about the environmental conditions of the industrial sector.The public must have better and easier access to information about environmental and ethical aspects of production, goods and services.

The development and use of know-how, product and process data as well as tools to assess the environmental impacts of products and production processes contribute to increasing enterprises' opportunities to integrate environmental considerations into strategies, development activities and day-to-day decisions. Building enterprise and staff competence and incorporating environmental know-how into training and education should fuel this development and lay the groundwork for a market for environmentally sustainable products.

Cleaner technology and products must be developed and made more widespread.We must develop and advocate the use of cleaner technology and products and provide room for new solutions, radical innovations, and technological advancement. In addition, products must be made more durable and easier to repair, upgrade or recycle than at present.The Government will work to make it possible to include environmental considerations in EU tenders and procedures, and for their incorporation into international standardisation work.

Environmentally friendly corporate development requires strong innovation capacity if green commercial opportunities are to be fully exploited and thus enhance the competitiveness of environmentally aware enterprises.The Government has initiated a technological "think tank" to encourage environmental innovation in Denmark with participants from a number of large Danish businesses, universities and other knowledge institutions, nongovernment organisations (NGO's) and investors.

There must be efforts to make corporate selfaction more widespread. Use and development of methods that bring environmental considerations into corporate decision-making must be strengthened to increase the number of Danish enterprises using environmental management and recognised environmental management systems. Initiatives should be aimed at ensuring that enterprises actively use, develop and spread "best available techniques".

As all market players have an important role in sustainable development, it is vital that they become part of this development. Green industrial development also depends, however, on distributors and other enterprises in the product chain that do not in themselves affect the environment to any noticeable degree, especially in a country such as Denmark with a large international trade. Retailers have an important role as messengers of environment demands from customers to suppliers and producers, and they can also play an active role by marketing environmentally friendly products and being at the leading edge in satisfying customer demands of suppliers. The financial services sector can also develop programmes designed to give general credit ratings and loans more environmental weight. Efficient environmentally conscious markets, as well as adherence to the polluter-pays principle, will also boost this development. At the same time, the more widespread use of green and ethical accounting will also facilitate the process.

The basis for sustainable development must be strengthened internationally.We must encourage the EU and international organisations to support recognised guidelines for corporate communication of environmental, ethical, social, and economic aspects. For example, Denmark will work to enhance the EU Flower in European markets. Internationally, environmental regulation should be improved through EU provisions such as the directive on pollution-intensive companies (IPPC) and through EU requirements pertaining to "best available techniques". The concept of life cycle and products, and a market-oriented approach must be disseminated on an international scale.

During the Danish EU Presidency in 2002, the Commission is expected to submit a White Paper on a common EU product-oriented strategy.The White Paper is expected to establish a framework for continued EU work in promoting demand and supply of cleaner products based on marketeconomic measures. One element of this is expected to be a framework for a cohesive information system for environment information about products. Moreover, the new EU Strategy for Integration of the Environment and Sustainable Development in the Single Market will have an impact. International Danish environmental assistance can help strengthen regulation, enforce legislation and transfer cleaner technologies. Assistance can also provide Danish expertise to reduce environmental impacts and develop local environmental competence.

| Front page | | Contents | | Previous | | Next | | Top |