Policies to foster Green Business Development – Experience from Germany

1. Policies to foster Green Business Development – Experience from Germany Jürgen Keinhorst Head of Division ’Cooperation with Countries of Central and Eastern Europe and Newly Independent States; MENA Region’ German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety Astana, 21st May, 2014

2. Challenges and opportunities Market failureandmissingpricesignals externalenvironmental costs, wastingresources  negative impactson environmentandhealth Early actionpays off  reducedcosts for healthsystems reducedcostsforconsumersofresources  highergains for producersofcommodities in thefuture Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

3. Innovations and new business opportunities • Alternative energy generation technologies • (Industrial) production: resource-enhancing technologies for process optimisation • Services and Consulting: e.g. ESCOs (Energy Service Companies) • Consumption: energy and resource efficient devices Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

4. Top 10 green technology lines in Germany Source: GreenTech made in Germany 3.0; Environmental Technology Atlas 2012 Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

5. Growing global environmental technology market Source: GreenTech made in Germany 3.0; Environmental Technology Atlas 2012 Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

6. The State - Facilitator & Driver for Green Business • Objective • Fosteringtheinternalisationofexternal environmental costs • Tool Box ofPolicy Instruments Information / CapacityDev. (e.g. education, consultation, labelling) Legislative / Normative (e.g. laws, mandatory norms and standards) Financial / Monetary (e.g. taxes, subsidies, market creation - ETS) Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

7. Example:Integrated approach to industrial emissions Objective: Preventing and reducing industrial emissions while limiting costs to industry • Best AvailableTechniques • EU-widestandards for operationofindustrialinstallations(same competitiveframeworkconditions) • Adoption ofstandardsbased on proventechnicalsolutions(cooperationbetweenstateandindustry) • Oneintegratedpermittakesaccountofentire environmental performance(coherentapproachto environmental objectives) • Fosters continuoustechnicalimprovements(Top Runner) Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

8. Example:Environmental Innovation Programme (EIP) Objective: Promotingeco-innovation in industrybyawarding front-runners • Financial support(subsidizedloanorgrant) for demonstrationprojectsoftechnologies, processesandproductswhich … • a) significantlyreduce negative environmental impacts • b) arerealizedforthefirst time at a large scale • c) arereplicable • d) acceptclosescientificmonitoring. • EIP-Partners: Implementingenterprises, KfW-Bank (financing), Federal Ministryforthe Environment, Federal Env. Agency (Scientific Monitoring) • Projects deliverreferencesfor environmental regulationandtechnicalnorms, • e.g. 14 BAT standardsbased on EIP-projects • . Policies to foster Green Business Development – German Experience Astana, 21st May, 2014Astana, 21st May, 2014

9. Example:The label of the Blue Angle Objective: targetinformationdeficitsofproductfeatures • Award Top 10% environmental performers of product class (supports TOP RUNNER principle beyond energy) with a label • Awarded by a joint-committee of government, business associations, social interest groups (high trust-level with consumers) • gives awarded companies competitive edge among environmentally conscious consumers Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

10. The State - Facilitator & Driver for Green Business • Reliable long-term policy objectives to ensure sufficient time-frame for industrial development • Cooperative approach between politics and industry to reach ambitious targets • Targeted support instruments to specific needs • Coherence of policy instruments Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

11. Impact of Green Business Development Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

12. International Cooperation • Transfer of policy experience • Supporting the introduction of the BAT approach • Support for the development and implementation of the Green Economy Strategy in Kazakhstan • Support for identifying cost-effective policies • Modelling economic consequences of various Green Economy strategy options Policies to foster Green Business Development – German Experience Astana, 21st May, 2014

13. Thank you for your attention! For further information, please visit www.bmub.de or contact me directly juergen.keinhorst@bmub.bund.de Policies to foster Green Business Development – German Experience Astana, 21st May, 2014