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Green Plans in Action: European Union: Industry Advantages
Innovation and Eco-Efficiency
The European Commission recognizes that the EU is not able to compete with its products and services on pricing, as more first world nations shift jobs to developing countries with cheap labor and lower standards. Rather, EU competitiveness and economic prosperity are based on the quality of its products and services. Strengthening innovation forms the heart of the Strategy for Growth and Employment. Innovations aimed at eco-efficiency benefit the environment and are an economic driver; they include technology, design, organization, marketing and distribution. Eco-innovations are part of the revised Lisbon Strategy. They save cost, improve quality, open up new markets, and decrease vulnerability and resource dependency of the EU to price shocks on commodity markets. The Clean, Clever, Competitive Initiative, started under the Dutch Presidency in 2004, bridges the seemingly opposite objectives of more economic growth and jobs, and less pressure on limited environmental resources. It can only do so by avoiding a compromise between current approaches and finding new solutions beyond the opposites. Emerging technology and eco-efficiency innovation are seen as contributions to strengthen the European competitive edge.
Long-Term Predictability and Tradable Market Solutions
In 2007, the European Commission unveiled a new reformed Emissions Trading Scheme (ETS) aimed at further reducing emissions across Europe. ETS replaces 27 national targets with one EU-wide target, which in turn reduces total emission allowances circulating at the end of 2021 by 1.74%. The reformed Scheme has an increased scope and includes new sectors such as aviation, petrochemicals and the aluminum sector. It also includes two new gases, nitrous oxide and perfluorocarbon, which means that 50% of all EU emissions will be included in the Scheme. In response to criticism that too many allowances are being handed out for free, the Scheme will have 60% of the allowances auctioned off as early as 2013, and 100% between 2013 and 2020. To achieve additional reductions of emissions in sectors not covered by the Scheme, the Commission has set national targets according to individual countries' GDP. More affluent countries will make larger cuts up to 20%.
Knowledge-Based Society
Education, innovative thinking, staff training, and lifelong learning are qualities shared by the most productive and successful businesses in the world. As representatives of the economy and providers of training, the Chambers of Commerce and Industry are strongly committed to their key national roles in developing and implementing educational programs tailored to the changing needs of both enterprises and individuals. (More...) In addition, the Lisbon Strategy (2000) was agreed upon by the European Council, setting an ambitious goal for the EU to become, within one decade, "the most competitive and dynamic knowledge-based economy in the world, capable of sustainable growth with more and better jobs and greater social cohesion." The Strategy covers research, education, training, online business, and Internet access with low-cost world-class communication networks.
Sustainable Development
The EU has made sustainable development, including environmental protection, a top priority. The European Commission for Enterprise and Industry has set up a High Level Group to strengthen the interplay between the three main policy objectives of Competitiveness, Energy, and Environment. In addition, EU studies show environmental policies have a neutral to mildly positive impact on the number of people in the workforce, identifying a clear link between social inclusion and the quality of the environment. This is especially the case with new policies that support development and use of new clean technologies within the EU and globally, such as the Environmental Technologies Action Plan.
SMEs and Entrepreneural Spirit
Small- and medium-sized enterprises (SMEs) with less than 250 employees, are the backbone of Europe's economy. There are about 23 million SMEs in the EU, providing around 75 million jobs and accounting for 99% of all enterprises. SMEs contribute up to 80% of employment in some industrial sectors, such as textiles, construction and furniture. SMEs are a major source of entrepreneurial skills, innovation, and key contributors to economic and social cohesion. They are encouraged to go international, leading to more competitive positions and enhancing companies' growth and productivity. The Commission of the European Communities is taking steps at the Community level and in Member States to advocate SME friendly policies in which they can grow, make profits, invest, and create jobs most effectively for unlocking the full EU economic potential. (More...) The Communication Commission proposed a 7 year, €5 million Environmental Compliance Assistance Programme (ECAP) to help SMEs minimize the environmental impact of their activities and facilitate compliance with existing legislation by designing instruments and policies to integrate environmental concerns into the core of SME activities.
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