Innovation and Sustainable Development in a New PED: UK Policy and Examples

2. TAIEX “Incorporating Sustainable Development and Innovation into a New PED ” February 2007

3. Introduction & Summary • Who is responsible for Innovation and Sustainable Development in the UK? • An explanation of Innovation and Sustainable Development • UK’s policy on Innovation and Sustainable Development • Examples of Innovation and Sustainable Development in a new PED

4. Who Is Responsible for Innovation and Sustainable Development Policy in the UK? Office of Science and Innovation Innovation Unit Sustainable Development and Regulation Innovation & Technology Policy

5. Sustainable Development and Regulation Directorate Responsibilities • New Approach Directives including PED, ATEX, Machinery, Low Voltage; • ‘Environmental’ Directives including Waste Electrical Equipment & Electronics and Restriction of Hazardous Substance; • Sustainable Development and Consumption policy (with DEFRA) • Corporate Social Responsibility

6. DTI Staff Responsible for PED Mike Dodds – Assistant Director ‘Engineering’ Directives (Lifts, Pressure Equipment, Machinery and ATEX) Rick Holyomes – Senior Policy Adviser & Denis Clarke – Policy Adviser (Pressure Equipment and ATEX Directives)

7. What Is Innovation? • Innovation is the “successful exploitation of new ideas”. • Innovation feeds economic growth through the introduction of new products and services. • Innovation is one of the five drivers of productivity.

8. Innovation: UK Policy and Examples POLICY: For innovation to have a positive impact upon UK productivity and improve UK’s relative economic performance. To influence EU innovation policy in order to implement the Lisbon agenda for growth and jobs. In the UK, the key objectives are set out in “Science & Innovation Investment Framework 2004-2014”. • TECHNOLOGY STRATEGY BOARD – to oversee a national Technology Strategy supporting key technologies. • RESEARCH & DEVELOPMENT – greater government funding (2007/8 £3.4bn) , ‘score cards’ and tax credits. • GOVERNMENT PROCUREMENT - public service spending of £150bn to provide incentive for companies to innovate & create new products, services and processes. • HIGH LEVEL OF SKILLS & HIGH VALUE JOBS – a knowledge economy with a highly skilled workforce. Identify optimal skill mix for 2020 in order to maximise growth, productivity and social justice.

9. Innovation in Europe • Regulation can provide incentives for but can also inhibit innovation • The “New Approach” is recognised as a good model of “outcome based” regulation • Both public and private sectors, working in partnership, have a valuable role to play to ensure that the regulatory framework acts as an incentive to innovation in the creation of new markets

10. Examples of Incorporating Innovation into A ‘New’ PED • Regulation framed to encourage innovative practises • Encourage the creation and use of standards that drive innovation • Faster production of standards to incorporate changes brought about by new technologies and materials • Materials’ requirements that allow easier use of new and innovative materials

11. What is Sustainable Development? • A commonly used international definition is "development which meets the needs of the present without compromising the ability of future generations to meet their own needs." • UK view that “Sustainable development is about wealth creation, environmental protection and social justice going hand in hand.”

12. UK Policy and Examples • POLICY: To encourage UK business to address both sustainable development and corporate social responsibility and to exploit any commercial opportunities arising from this. Tackling climate change & using resources are given priority and support is given via a portfolio of incentives, technology and business advice services. • SECTOR SUSTAINABILITY CHALLENGE: a joint DTI/DEFRA programme that encourages industrial sectors to develop practical actions that can be taken by its members. • UK FRAMEWORK ON SUSTAINABLE PRODUCTION AND CONSUMPTION: several key elements that include breaking the link between growth and pollution, improving resource efficiency; reducing a product’s impact by a ‘whole-life’ review. • CARBON TRUST: a government-funded independent company whose role it is to encourage business & the public sector to reduce carbon emissions and capture opportunities of low carbon technologies. • WASTE & RESOURCES ACTION PROGRAMME: a company with DTI/DEFRA funding that promotes sustainable waste management by creating stable and efficient markets for recycled materials and products.

13. Examples of Incorporating Sustainable Development and Consumption into A ‘New’ PED • Encourage Corporate Social Responsibility in all PED stakeholders • Evaluate materials’ requirements to ensure effective use of raw resources and incorporate recycled waste materials ie reduce an item’s ‘resource’ and carbon footprint • Enable greater use of pre-own goods & recycled materials through regulation and guidance

14. Main messages • UK is keen to see sustainable development and consumption and innovation to be key elements in all trade activities • Innovation is key to increasing productivity, economic growth and addressing issues of sustainable development and consumption • Sustainable development and consumption & corporate social responsibility should be core business activities • Examples given are not an exhaustive list • A ‘new’ PED gives us an ideal opportunity to use novel approaches to solve such issues and for Europe to become world leaders in these issues

15. Conclusion: Requires a holistic approach Wealth creation Science Sustainable development & consumption Economic growth Technology Innovation New products & services Innovation

16. /EC) THANK YOU FOR YOUR ATTENTION Q&A