Indicator Report

7. Resources and resource efficiency

Objectives

It is necessary to utilise the resources of nature. They are used as production and consumption input. Resources form the basis of increased welfare. Sustainable development entails that increased welfare takes account of the Earth's ecosystems and the amount of renewable and non-renewable natural resources.

A long-term objective is to increase resource efficiency significantly during the course of one generation. First of all, we must limit the use of natural resources that are scarce, particularly vulnerable, or particularly harmful to the environment when used. The UN Secretary General has pointed to changes in production and consumption patterns as a significant challenge on the way towards sustainable development. In this connection, he indicated decoupling and more efficient use of resources by a factor of 4 and 10 as goals. As part of the Danish Government's efforts to achieve sustainable development and sustainable production and consumption patterns, a long-term target has been set: to limit resource consumption to about 25 per cent of the current level. There is a need for further specification of initiatives concerning the use of resources in the future.

Developments - a summary

Following a period of atypical increases in rawmaterials extraction in Denmark of sand, gravel, stone, lime, clay, etc. during the first half of the 1990s, the trend is now headed in the right direction. The fluctuations were caused by major construction projects, e.g. the bridges across the Great Belt and the Sound. Long-term resource economising within the rawmaterials area should primarily be linked to the way we consume natural resources, e.g. through minimisation of actual consumption and more efficient use of resources available.

In recent years, the use of substitution materials instead of newly extracted raw materials (specifically in the form of recycling of building materials and residual products from power plants) has accounted for 6 to 7 per cent of total extraction from land and sea. Since 1996, there has been a slight decline in the recycling of residual products from power plants. In 2000, recycling of building and construction materials was almost back at the levels seen in 1996, when recycling peaked.

The indicator TMR (Total Material Requirement) illustrates the total use by a given country of the world's resources. TMR is one of many indicators which illustrate the extent of resource consumption. A decline in the TMR combined with greater economic growth constitutes a positive signal that a country is able to utilise its resources in an efficient manner. It does not, however, necessarily say anything about the environmental impact caused by the resource use.

The TMR1997 for Denmark has been calculated at 70 tonnes per capita. This figure is based on data from 1997 and constitutes the first proposal for an indicator for the total Danish drain on domestic and foreign resources. The TMR1997 for Denmark is significantly larger than the average figure for EU Member States, which is 50 tonnes per capita. The Danish resource drain corresponds to that of Germany (1996) and the Netherlands (1994). Japan (1994) is one example of a country which has a lower resource drain than Denmark.

Overall, GDP and waste volumes were completely proportional during the period 1994 to 2000, with an increase of 17 per cent. When considering the fluctuations during the period, there was a relative decoupling between total waste volumes and economic growth during the period 1996 to 2000. This relative decoupling was, however, primarily the result of a reduction in waste volumes from power plants and the building and construction sector. If these two sectors are excluded from the calculations, we see that the waste volume grew from 1997 to 1998. Waste production has not been successfully decoupled from economic activities in the individual sectors within households, industries, and the service sector.

We have become better at utilising the resources hidden in our waste. In 2000, a total of 65 per cent of all waste was recycled, while the corresponding 1994 figure was 56 per cent. Similarly, the percentage of waste deposited at landfills fell by 13 percentage points during the same period.

Today, the estimate of the reserves of crude oil is considerably higher than the 1990 estimate, even though production has been high during the last ten years.

Denmark is among the countries where land area is exploited most intensively. The total agricultural area has not changed significantly in the last 50 years. The natural areas have, however, decreased. They are mainly reduced due to urban development and houses, roads, and other structures in open countryside, all of which take up increasing amounts of space. Greater emphasis on afforestation has increased woodland areas in Denmark. Work is being carried out to ensure a more holistic approach to area usage, including concerns for nature.

Perspectives for development of indicators

Work is being carried out at national and international levels to develop better indicators for elucidating the significance of materials consumption and material flows in terms of environmental impacts. Improvements in methods and results from this work will be incorporated in the set of indicators for sustainable development. For example, total resource consumption could be analysed by nonrenewable and renewable resources, and it would also be possible to monitor consumption of selected resources such as concrete, iron, and aluminium. In addition to this, assessments will be carried out on the opportunities for developing one or more indicators capable of describing developments regarding resource efficiency and intensity. As the area data improve, there will be a basis for a more detailed indicator for area utilisation.

Indicator 7.1:
Denmark's total consumption of selected resources (raw and ancillary materials) Source: Statistics Denmark

This indicator has been chosen to elucidate developments in relation to the objective about reducing resource consumption. The figure shows Denmark's consumption of selected domestic resources, analysed by extraction from land and sea.

During the first half of the 1990s, raw-materials extraction in Denmark of sand, gravel, stone, lime, clay, etc. remained relatively stable at approximately 30-32 million m3 per year. Following this, the extraction of raw materials rose to 37-38 million m3 up until the steep increase in 1999 to 48 million m3, which can only be described as atypical. The increases observed in the period leading up to 1999 were primarily caused by the construction of the bridges across the Great Belt and the Sound, whereas the 1999 increases were mainly the result of the expansion of Aarhus port. Following the completion of the expansion of the port in 2000, levels dropped once again to correspond to the levels seen in the early 1990s. In recent years, the use of substitution materials instead of newly extracted raw materials (specifically in the form of recycling of building materials and residual products from power plants) has accounted for 6 to 7 per cent of total extraction from land and sea.

The objective is to reduce resource consumption. Following atypical increases in 1999, the trend is once again headed in the right direction. Long-term resource economising within the rawmaterials area should primarily be linked to the way we consume natural resources, e.g. through minimisation of the actual consumption and more efficient use of the resources available.

Indicator 7.2:
Total material requirement (TMR) per capita
Source: Statistics Denmark

The indicator TMR (total material requirement) illustrates the total use by a given country of the world's resources. It is just one of many indicators which illustrate the extent of resource consumption. The advantage of using the TMR is that this indicator includes the resource drains occasioned by a given country's economic activities within and outside of its national boundaries. A drawback common to all indicators for resource drains is the fact that they do not say anything about the impact on the environment caused by the resource drain.

The TMR1997 for Denmark has been calculated at 70 tonnes per capita. This figure is based on data from 1997 and constitutes the first preliminary proposal for an indicator for the total Danish use of domestic and international resources. The TMR1997 for Denmark is significantly larger than the average figure for the EU Member States, which is 50 tonnes per capita. The Danish resource use corresponds to that of Germany (1996) and the Netherlands (1994). Japan (1994) is one example of a country which has a lower resource drain than Denmark. One of the primary reasons why the Danish drain on resources is so large is the large imports of coal.

Only one TMR indicator for one year has been established as yet, and so it is not possible to trace trends regarding the Danish resource drain. A decline in the TMR combined with greater economic growth constitutes a positive signal that a country is able to utilise its resources in an efficient manner.

Indicator 7.3:
Developments in waste generation and GDP
Source: The Danish Environmental Protection Agency and Statistics Denmark.

This indicator illustrates trends as regards environmental impacts from waste. Among other things, waste generation depends on economic activity within society.

Overall, GDP grew by 17 per cent during the period 1994 to 2000. Waste volumes also increased by 17 per cent during the same period. The waste volumes did, however, decrease during the period 1996 to 1999. This means that the waste intensity (waste generation in relation to GDP) also fell during this period. Even so, the waste intensity rose again from 1999-2000 due to greater waste volumes.

Increases in production and consumption will increase waste volumes. Sustainable development means that we must decouple economic growth from waste generation. There was a relative decoupling between total waste volumes and economic growth during the period 1996 to 2000. The reduction in the total waste volume from 1997 from 1998 was, however, primarily the result of a reduction in waste volumes from power plants and the building and construction sector. If these two sectors are excluded from the calculations, we see that the waste volume grew from 1997 to 1998.

Indicator 7.4:
Waste volume recycled in absolute figures and in relation to total waste volume in Denmark
Source: ISAG (Information System for Waste and Recycling), the Danish Environmental Protection Agency

This indicator illustrates trends as regards environmental impacts from waste. The figure shows the developments in waste volume and method of treatment. Waste is resources which are about to be lost. This is why waste generation must be prevented. All treatment of unavoidable waste must be based on the treatment hierarchy. This is to say that recycling should be favoured over incineration with energy utilisation, which in turn should be favoured over land filling.

In 2000, a total of 8,461,000 tonnes of waste, corresponding to 65 per cent of all waste generated in Denmark, was recycled. This constitutes an increase of 2,287,000 tonnes or 9 per cent when compared to 1994 figures. Similarly, the percentage of waste deposited at landfills fell by 13 per cent during the same period. This is very much the result of Denmark's use of economic tools in support of the treatment hierarchy: recycling waste does not attract tax, whereas incineration and land filling both attract taxes, with land filling as the most expensive alternative.

In relation to the strategy's objective regarding efficient use of resources, the figure shows that we have become steadily better at exploiting the resources represented by waste. This applies to resources in terms of materials as well as energy.

Indicator 7.5:
Waste volume in Denmark from the following 4 sectors: households, services, industry, and building and construction; analysed in absolute figures and in relation to financial activity in the sectors
Source: The Danish Environmental Protection Agency and Statistics Denmark.

This indicator elucidates correlations in the development of waste volumes and economic growth. The trends within waste intensity (waste generation in relation to the GDP) illustrates whether economic growth has been decoupled from waste volumes.

As the top part of the figure shows, the trends regarding waste generation are quite different within the various sectors. At one extreme, waste volumes from households increased by 20 per cent and waste volumes from services increased by 70 percent. Generally speaking, waste volumes have increased as economic activity increased within each sector. Thus, waste intensity within the service sector grew throughout the entire period. Within the building and construction sector waste intensity increased up until 1997. After that time, reduced waste volumes caused a radical decrease from 1997 to 1998. Since 1998, the waste intensity has increased again, albeit at a slower rate.

Among other things, waste generation within the various sectors depends on the economic activity within the sector in question. Increases in production and consumption will increase waste volumes. Sustainable development means that we must decouple economic growth from waste generation. Except from within the building and construction sector, where the waste intensity decreased from 1997 to 1998, waste generation has not been successfully decoupled from economic activities within the individual sectors.

Indicator 7.6: Recycling in the building and construction sector as a percentage of extracted raw materials
Source: Statistics Denmark

This indicator elucidates the use of raw materials in Denmark. The figure illustrates the extent of recycling of materials for building and construction. Recycling of building materials primarily concerns concrete and tiles from demolition sites. These materials are crushed and reused as gravel, gravel for road construction, and stone. Residual products from power plants in the form of plaster, cinders, and flues are also used as substitutes for freshly extracted raw materials.

In recent years, recovery of building materials and use of residual products from power plants instead of newly extracted raw materials has accounted for 6-7 per cent of the total extraction from land and sea. Approximately two-thirds of all substitution materials come from the building and construction sector, whereas residual products from power plants account for the remaining onethird.

The objective is to realise sustainable use of raw materials. Since 1996, recovery of residual products from power plants has shown a slight decline. Following decreases in 1998 and 1999, recovery of building and construction materials in 2000 was almost back at the levels seen in 1996, when recycling peaked.

Indicator 7.7:
Known reserves in the North Sea in relation to the current annual production of oil and gas, respectively
Source: The Danish Energy Authority

This indicator sheds light on the relationship between the known reserves in the North Sea and the current annual production as regards oil and natural gas. The reserves of crude oil and natural gas have been calculated as the quantities which can, within an overall economic framework, be extracted by means of known technology.

Since 1990, the estimated size of reserves of oil and gas has increased. At the same time, production has gone up, which means that the curves show a downward trend. At the end of 2000, the total reserves of crude oil and natural gas have been estimated at 299 million m3 and 144 billion m3, respectively. This corresponds to 14 years of crude-oil production and 19 years of natural-gas production if activities continue at the levels observed in 2000.

As part of the efforts to reduce consumption of oil and gas reserves, the Government aims to develop renewable energy sources.

Indicator 7.8:
Development in area utilisation (km2) analysed by the following area types: nature, forest, farmland, houses, and roads in the countryside and in towns and cities
Source: Natur og Miljø, 2001

This indicator elucidates developments in area utilisation. The figure illustrates area utilisation (km2) analysed by the following area types: nature, forest, farmland, houses, and roads in the countryside and in towns and cities.

The total agricultural area has not changed significantly in the last 50 years. The natural areas have, however, grown smaller. They are mainly pushed back by urban development and houses, roads, and other structures in the open countryside, all of which take up increasing amounts of space. Greater emphasis on afforestation has increased the woodland areas in Denmark.

Denmark is among the countries where the land area is exploited most intensively. Agriculture accounts for 58 per cent of Denmark's total area, and today only ten per cent of Denmark is covered by natural areas such as dunes, dry grasslands, moors, marshland, and lakes. As a result of the developments in area utilisation, nature has less space, contains too many nutrients and too little water, and the natural areas are segregated and in the process of becoming overgrown. Work is being carried out to ensure a more holistic approach to area utilisation which also includes concerns for nature.