EEA Report No 9/2005

Sustainable use and management of natural resources

ISSN 1725-9177
X
 EEA Report No 9/2005

Sustainable use and management of natural resources

Cover design: EEA
Cover photos: © EEA; Source: Pawel Kazmierczyk, 2005
Layout: EEA

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 Contents

Contents

Acknowledgements..................................................................................................... 4
Summary..................................................................................................................... 5
1 Introduction........................................................................................................... 9
2 Drivers of resource use . ...................................................................................... 11
2.1 Demographic developments...............................................................................11
2.2 Economic growth..............................................................................................12
2.3 Patterns of development ...................................................................................13
2.4 Growing resource use in the global context .........................................................15
3 Natural resources and their use . ......................................................................... 18
3.1 Material flows and material intensity . .................................................................19
3.2 Renewable resources . ......................................................................................23
3.3 Non-renewable resources . ................................................................................34
4 Policy responses................................................................................................... 46
4.1 Examples of individual policies . .........................................................................47
4.2 The challenges of policy integration.....................................................................47
4.3 Resource economics and the role of prices ..........................................................52
4.4 Implications for competition ..............................................................................53
5 Outstanding questions . ....................................................................................... 58
Abbreviations and definitions.................................................................................... 63
References ............................................................................................................... 65

Sustainable use and management of natural resources 

 Acknowledgements

Acknowledgements

This report was written by the expert team of the Mr. Andrew Terry, IUCN — The World
European Topic Centre on Resource and Waste Conservation Union, Regional Office for Europe,
Management (ETC/RWM), consisting of Stephan Brussels
Moll, Mette Skovgaard and Philipp Schepelmann. It
was coordinated and edited by Paweł Kaźmierczyk Mr. Bill Duncan, Assurre, Brussels
(EEA), under the general guidance of Jock Martin
(EEA) and Jeff Huntington (EEA). Ms. Caroline Raes, DG Enterprise and Industry,
European Commission
The information and analysis in the report is
based on six background papers compiled and Mr. David Capper, DEFRA, United Kingdom
edited by the ETC/RWM. Background papers on
'general policy issues', 'land use', and 'material Mr. Frans Vollenbroek, DG Environment, European
flows and waste' were prepared by Stephan Moll, Commission
Philipp Schepelmann, Mette Skovgaard, Helmut
Schütz, Stefan Bringezu and Raimund Bleischwitz. Ms. Helen Mountford, Environment Directorate,
A background paper on 'forestry' was written by OECD
Jo Van Brusselen, Markus Lier, Andreas Schuck,
Richard Fischer and Bruce Michie from the Ms. Helga Weisz, IFF-Social Ecology, Klagenfurt
European Topic Centre on Nature and Biodiversity/ University, Austria
European Forest Institute. A background paper
on 'water use' was prepared by Peter Kristensen, Mr. Michael Massey, DTI, United Kingdom
European Topic Centre for Water/Danish National
Environmental Research Institute. A background Mr. Peter Eder, DG Joint Research Centre, European
paper on 'fisheries' was prepared by Gunnar Album Commission
from the Trygg Mat Foundation, Norway.
Mr. René Kemp, University of Maastricht, the
The EEA gratefully acknowledges the contributions Netherlands
of the advisory group set up for this report. The
advisory group, whose extensive knowledge and Mr. Rocky Harris, DEFRA, United Kingdom
experience benefited this work, consisted of:
Mr. Uno Svedin, Director of International Affairs,
Formas, Sweden

Mr. William Floyd, GOPA, European Commission.

 Sustainable use and management of natural resources

 Summary

Summary

Background from that at the global level. With population

growth limited, the main driving forces are
The EU sixth environment action programme economic growth and the pattern of development.
(6EAP) expressly calls for 'breaking the linkages
between economic growth and resource use'. This The European model of wealth is based on a high
report, which contributes to the EEA's five-year level of resource consumption, including energy
report 'The European environment — State and and materials. Current material consumption in
outlook 2005', was prepared in recognition of the industrialised countries is between 31 and 74 tonnes/
importance of the sustainable use and management person/year (total material consumption), and
of natural resources on the policy agenda. environmentally most significant is the consumption
of materials for housing, food and mobility. The
Given the broad coverage of 'natural resources', average material intensity in the EU-25 is slightly
it was decided to focus on a handful of natural less than in the United States, but twice as high as
resources: fisheries, forestry, water, fossil fuels, in Japan. The picture is similar for energy intensity,
metals and construction minerals, and land use. where the efficiency of the Japanese economy is even
more pronounced.

Global driving forces There are large differences between EU countries.

On average, resource and energy productivity in
The main driving forces of resource consumption western Europe is several times higher than in
are population and economic growth, and the the new EU Member States in central and eastern
pattern of development, broadly defined to include Europe. Material intensity varies from 11.1 kg/EUR
technological level, economic structure, and the of GDP in Estonia to 0.7 kg/EUR in France.
patterns of production and consumption. The
projected 50 % growth in the global population over Some relative decoupling of economic growth
the next fifty years will put a significant pressure on from materials and energy consumption has been
the environment. achieved in many EU countries during the past
decade. This did not necessarily lead to an absolute
If, over the next fifty years, the population of the decrease in environmental pressures, because
developing countries achieves levels of material absolute resource use has generally remained steady
wealth similar to today's levels in industrialised over the past two decades. In part, this decoupling
countries, world consumption of resources would may be due to increased imports of natural
increase by a factor ranging from two to five. resources, substituting for their declining production
or extraction in Europe.
Without dramatic technological improvements or
changes in the patterns of consumption, growth
in resource use and environmental impacts due Measuring the use of resources and its
to increased population and economic growth impact on the environment
in developing countries are likely to outweigh
technological efficiency gains in industrialised High use of natural resources increases the pressure
countries. on these sources (e.g. maintaining the availability
of supplies and ensuring sustainable yields) and on
sinks (e.g. managing the environmental impacts of
European patterns of resource use resource use, and whether ecosystems can absorb
discharges). It is generally accepted that there are
In Europe, the relationship between the main physical limits to continuing economic growth based
driving forces that determine resource use differs on resource use.

Sustainable use and management of natural resources 

 Summary

However, there are many uncertainties in assessing Energy consumption is increasing, mainly because
reserves and the regeneration dynamics of natural of growth in the transport sector, but also in the
resources. The overall consumption of material household and service sectors. At the same time,
resources is known only for a small number of environmental pressures are decoupling from
countries. Eurostat's MFA indicators have been energy use in the EU-15, where fossil fuel-related
compiled for some countries, but the tools to measure emissions of air pollutants (SO2, NOX, NMVOC,
resource use and the related environmental impacts is particles) have declined significantly over the past
still at an early stage of development. However, while decade, mainly through the use of end-of-pipe
the world population is growing and industrialisation technology measures. Emissions of CO2, however,
is increasing rapidly, the availability of natural remain unabated.
resources is not likely to rise dramatically.
Growing global trade, and Europe's increasing
dependence on imports, may lead to problems of
Pressure on natural sources security of supply. In the second half of the 20th
century, the volume of global trade grew by a
Few Europeans suffer from permanent water factor of 6 to 8 for raw materials, and more than
shortages or poor water quality, although the 40 for semi-manufactured and finished goods.
situation varies with time and place — there still are Supply disruptions and shortages could negatively
many locations under threat from human activities, affect the European economy. The likelihood of
leading to overexploitation of aquifers and low conflicts between countries as a result of shortages
quality of surface waters. Overall, there has recently of resources may also increase, as demonstrated by
been a slight decline (8–9 %) in water abstraction in cases involving oil, water access, and fishing rights.
the EU-15. There has been significant progress over
the past two decades in reducing discharges from
point sources such as big cities and industrial plants, Pressure on sinks
but far less in controlling those from diffuse sources,
in particular from agriculture. The global increase in material consumption will
affect the atmosphere, where capacities to absorb
The case of fisheries is a prime example of a CO2 emissions without a change in climate seem
policy effort which has not resulted in sustainable to have been surpassed. Growing volumes of
resource management in practice. About one third municipal and industrial wastes have to be handled.
of global fish stocks are already overexploited. Many metals, such as gold, nickel and copper, are
Most fish stocks in European waters are overfished extracted using environmentally-intensive mining
or fully exploited, mainly due to overfishing, but technologies, which result in large quantities of
also because of coastal and marine pollution, and mining waste, contamination of soils and destruction
changes in ecosystems. During the 1990s, constant of landscape, negative effects on biodiversity and
overfishing threatened fish populations and natural water cycles, and high energy consumption.
provoked conflicts affecting EU Member States.
Extraction of construction minerals, including sand,
Forest is a natural resource with a very long gravel, clay, and limestone, and natural stones,
tradition of sustainable use and management. causes noise and air pollution in addition to most
The area covered by forests in Europe is around of the problems encountered in the extraction of
36 %, and on average, has been increasing by half metals. One particular environmental problem
a million hectares a year in recent years. However, linked with the consumption of construction
European forests showed a continuing deterioration minerals is the transformation of land into built-
in crown condition between 1989 and 1995. Studies up area, resulting in significant losses of the basic
after 1995 show a stabilisation at high defoliation natural functions of the land.
levels, with almost a quarter of the sample trees
rated as damaged in 2003. Although the pressure Currently, 47 % of European land is used for
of acidification on forest ecosystems has decreased, agriculture, 36 % for forestry, and 17 % for other
evidence of impacts of climate change on forestry purposes, including settlements and infrastructure.
has appeared in recent years. Leaving aside the environmental impacts of
agriculture, which are beyond the scope of this
More than 90 % of primary energy supply in the EU report, the three most important threats to European
is based on fossil energy carriers. Each year, almost soils are sealing, erosion, and contamination. In
4 tonnes of fossil fuels are consumed per capita Europe, around 26 million ha are subject to water
in the EU-15, and about half of that is imported. erosion, and about 1 million to wind erosion.

 Sustainable use and management of natural resources

 Summary

The increase in the rate of sealing has far Ongoing policy debate shows the need for better
outstripped the growth in population. In Germany, integration of environment- and resource-related
for example, the amount of land used for settlements considerations into sectoral and other policy areas.
and infrastructure grew by 93 ha per day in 2003, Recently, EU and some national policies have
with about half of that (equivalent to eighty football increasingly focused on decoupling resource use
fields) being sealed every day. Soil fertility can and environmental impacts from economic growth.
decline very rapidly as a result of contamination, It is generally agreed that the most effective
erosion, or sealing. The time for natural recovery approach will vary depending on the specific
is very long (in central Europe, the rate of soil resource.
generation is about 5 cm in 500 years).
Due to the 'rebound effect,' (incremental gains
in technical efficiency being offset by more
Policy fragmentation widespread consumption), it is unlikely that
resource use can be reduced by technological
Almost every Community policy affects the use improvements alone. The sustainability of current
and management of natural resources. Among the lifestyles and consumption patterns may have to be
most important are the common agricultural policy, critically reviewed. The right price signals are an
the common fisheries policy, regional development effective tool for improving resource efficiency and
policy, and transport and energy policies. A number influencing consumption patterns. For example, the
of cross-cutting environmental strategies address cost of environmental impacts should be factored
the sustainable use and management of resources, into the prices of products and services. It may
including the sustainable development strategy, also be necessary to reduce subsidies that sustain
the 6th environment action programme, and the practices with negative environmental impacts.
planned thematic strategies on the prevention and
recycling of waste and on the sustainable use of
natural resources. However, in the absence of a Implications for competition
coherent resource policy, every policy domain has
tended to develop its own approach to using and While critics argue that environmental protection
managing natural resources. and sustainable management of resources are costly
and reduce competitiveness, a coherent policy
So far, there is no single EU institution responsible response can bring about many positive economic
for coordinating policies to achieve the sustainable effects. Large investments in environmental
management of resources or for collecting the data protection have helped to create around two million
necessary to understand the situation and monitor jobs in the European eco-industry. The industry,
progress. No priority sectors or resources for which accounts for about one-third of the global
policy intervention have been indicated, and few market, is already highly competitive, especially in
quantitative targets have been proposed. the areas of efficient use of fossil fuel energy and
technologies for renewable energy use.

Strategic responses Given the large differences in resource efficiency

between EU countries, there are many opportunities
On the whole, EU environmental policies have for improving the efficiency of the more resource-
resulted in better management of the environmental demanding economies. This could be achieved
impacts of resource use. There have been a number partly by transfers within the EU of today's
of successes of European environmental policies technologies. Increasing the efficiency of resource
since the 1970s, especially in the areas of water and use in sectors with high materials and energy costs
air quality. will directly increase the global competitiveness of
European industries.
However, a main focus of the legislation has been on
industrial point sources of pollution, and the initial Emphasis on material and energy efficiency can also
response from industry has been to resort to 'end-of- help to reduce unemployment, because economic
pipe' measures, which require substantial investment. restructuring and cost-saving strategies traditionally
According to the European Commission's estimates target the labour force first, despite the fact that
for 1990–2010, implementation of seven directives in labour productivity in Europe is already high,
the area of water and air protection will cost some having increased by some 270 % between 1960 and
EUR 230 billion, with additional annual operating 2002, compared with 100 % for materials and barely
costs of around EUR 10 billion. 20 % for energy.

Sustainable use and management of natural resources 

 Summary

Outstanding questions use; focus of policy on environmental impacts or

on scarcity of resources; choice between relative
There have been vigorous discussions among decoupling and dematerialisation/absolute decrease
stakeholders about the priorities or the best of resource use as the main policy goal; what
approach to address the use of natural resources. priority areas or specific resources should be the
Some of the outstanding questions in the policy focus of policy intervention; and how to set targets
debate revolve around the availability of methods and measure progress in sustainable use and
to estimate the environmental impacts of resource management of resources.

 Sustainable use and management of natural resources

 Introduction

1 Introduction

Human wealth is based on the use and consumption world. Given the broad coverage of the term 'natural
of natural resources, including materials, energy and resources (1)', a decision was made at the outset to
land. Continued increase in resource use and the focus the analysis on a selection of natural resources:
related environmental impacts can have a multitude fisheries, forestry, water, fossil fuels, metals and
of negative effects leading to ecological crises and construction minerals, and land use. The factors
security threats. The sustainable use and management behind this choice included ensuring a mix of
of natural resources have therefore come into focus renewable and non-renewable resources, the policy
and have been the subject of many policy discussions relevance and political importance of the resources,
over more than a decade, beginning with the summit and the ability to illustrate the various policy
in Rio de Janeiro in 1992. approaches.

The EU has been putting increasing emphasis on Development of a policy on resources is still at an
this topic, especially since the adoption in 2001 of the early stage, and many important questions remain
EU sustainable development strategy and the sixth open. The report aims to present how the use of
environment action programme (6EAP). The 6EAP natural resources has been managed, including
expressly calls for 'breaking the linkages between both successes and failures. Where there are
economic growth and resource use' (Box 1.1). controversies or disagreements about the best way
forward — and there are many — the points of
This report focuses on our ability to continue to view and arguments of various stakeholders are
provide for our needs by drawing on the natural presented, without advocating a certain approach

Box 1.1 6EAP and sustainable use and management of natural resources

Objectives and priority areas for action on the sustainable use and management of natural resources and
wastes in the 6EAP are as follows:

• '…aiming at ensuring that the consumption of resources and their associated impacts do not exceed the
carrying capacity of the environment and breaking the linkages between economic growth and resource
use. In this context the indicative target to achieve a percentage of 22 % of the electricity production
from renewable energies by 2010 in the Community is recalled with a view to increasing drastically
resource and energy efficiency;
• achieving a significant overall reduction in the volumes of waste generated through waste prevention
initiatives, better resource efficiency and a shift towards more sustainable production and consumption
patterns;
• a significant reduction in the quantity of waste going to disposal and the volumes of hazardous waste
produced while avoiding an increase of emissions to air, water and soil;
• encouraging re-use and for wastes that are still generated: the level of their hazardousness should be
reduced and they should present as little risk as possible; preference should be given to recovery and
especially to recycling; the quantity of waste for disposal should be minimised and should be safely
disposed of; waste intended for disposal should be treated as closely as possible to the place of its
generation, to the extent that this does not lead to a decrease in the efficiency in waste treatment
operations.'
Source: 6EAP.

(1) The European Commission (CEC, 2003) defines natural resources to include: raw materials (e.g. minerals, fossil energy carriers,
biomass), environmental media (e.g. air, water, soil), flow resources (wind, geothermal, tidal and solar energy), and space (land
use for human settlements, infrastructure, industry, mineral extraction, agriculture and forestry).

Sustainable use and management of natural resources 

 Introduction

or prescribing a specific course of action. After all, resources and their use (state), covering a sample of
there are no easy answers to such questions as: 'is renewable and non-renewable resources. Existing
further economic growth really necessary?', 'should policies that influence the use and management of
society focus on achieving a relative decoupling resources are then presented (responses), and finally
of impacts from resource use or rather strive for a some questions which are the subject of ongoing
general dematerialisation and absolute reduction of policy debate are addressed.
use of resources?' and 'is resource scarcity a bigger
problem than environmental impacts?' Several issues relating to sustainable use of
resources are covered in other reports which
Following loosely the DPSIR analytical framework contribute to the EEA's five-year report 'The
(Box 1.2), the report begins with a study of the European environment — State and outlook 2005'.
driving forces behind resource consumption In particular, they include EU consumption patterns,
(drivers). This is followed by a review of natural biodiversity, agriculture, renewable energy, and
scenarios and outlooks.

Box 1.2 The DPSIR framework

DPSIR is a general framework for organising information about the state of the environment. Conceptually,
the framework assumes cause-effect relationships between interacting components of social, economic, and
environmental systems, which include:

Drivers — the anthropogenic forces that lead to pressures on the environment. The drivers include
population growth, economic production and consumption activities, and developments in the needs and
activities of individuals (e.g. leisure activities). In the context of sustainable use of resources, examples of
drivers include industrial production activities where resources are extracted and transformed into goods and
services (e.g. fossil fuels into electricity).

Pressures — pressures are the ways in which drivers are expressed physically, reflecting the interlinkages
between a human activity and the surrounding natural environment. On the 'input' side, pressures comprise
extraction of materials from nature for use in human activities (e.g. fossil fuels, minerals, and biomass, use
of land), while on the 'output side' pressures include of discharges of pollutants and generation of waste (e.g.
CO2 emissions, wastewater, mining waste)

State — the properties of the ecosystem itself. Pressures exerted by human activities influence the state
of ecosystems, by altering the natural bio-geo-chemical material cycles. State refers to the condition
of different environmental compartments and systems in physical (e.g. temperature), chemical (e.g.
atmospheric CO2 concentrations) or biological (fish stocks) variables. Up to a certain threshold, the natural
ecosystems can cope with and accommodate human-induced disturbances; however, these 'carrying
capacities' are not very well known.

Impact — impacts on population, economy and ecosystems caused by the changes in state. Impacts can
include ill health, biodiversity loss, or economic damage. For instance, higher atmospheric concentrations of
CO2 cause higher average temperatures which again alter natural ecosystems and may have an impact on
human health (e.g. cardiac diseases).

Response — actions taken by society as well as governments to prevent, compensate, or adapt to changes
in the state of the environment. Responses tend to aim to change drivers (i.e. human activities) so as to
avoid pressures. For instance, responses can aim at raising the efficiency of products and processes, through
stimulating the development and penetration of clean technologies.

Variations of DPSIR framework include PSR (e.g. OECD, 1994), DSR (e.g. UNCSD, 1996).

10 Sustainable use and management of natural resources

 Drivers of resource use

2 Drivers of resource use

Over the past 50 years, humans have changed include technological level, economic structure, and
ecosystems more rapidly and extensively than in the patterns of production and consumption.
any comparable period in human history, largely
to meet rapidly growing demands for food, fresh In a globalised world, these factors need to
water, timber, fibre and fuel. This has resulted in be considered in the global context, to better
substantial gains in human well-being and economic understand the magnitude and urgency of the
development, but these gains have been achieved challenge to both global and European production
at growing costs in the form of the degradation and consumption patterns.
of many ecosystems (Millennium Ecosystem
Assessment, 2005).
2.1 Demographic developments
What is driving our material and energy use to the
extent that it is becoming a global environmental Global demographic patterns have an impact
problem and a threat to future generations? There on the environment which follows a fairly basic
is no simple answer to this question, because a relationship: more people mean more pressure
number of interdependent socio-economic and on the environment. The extent and nature of the
environmental factors are at play. Nevertheless, pressure, however, also depends on the socio-
there are three basic factors which determine the economic situation and technological developments.
growth of resource consumption, and the resulting
environmental impacts of human production and According to the UN World population prospects
consumption patterns. (UN, 2003) the global population is expected to
increase by almost 50 % in the first half of the 21st
The first is the size of the population. The more century, from 6.3 billion in mid-2003 to 8.9 billion
people who need to cover their material needs, the by 2050 on the assumption of medium fertility.
more resources are consumed. The second is how Details are shown in Table 2.1, where low and high
and to what extent we meet our needs. The third fertility variants as well as a continuation of current
is the pattern of development, broadly defined to fertility rates are also shown. Most of the increase

Table 2.1 Estimated and projected population of the world by major development groups,
1950, 2000 and 2050 according to different fertility variants

Estimated population (millions) Population in 2050 (millions)

Major area 1950 2000 2003 Low Medium High Constant
World 2 519 6 071 6 301 7 409 8 919 10 633 12 754
More developed regions 813 1 194 1 203 1 084 1 220 1 370 1.18
Less developed regions 1 706 4 877 5 098 6 325 7 699 9 263 11 568
Least developed regions 200 668 718 1 417 1 675 1 960 3 019
Other less developed 1 505 4 209 4 380 4 908 6 025 7 303 8 549
countries

Note: Less developed regions: all countries in Africa, Asia (excluding Japan), and Latin America and the Caribbean, and the regions
of Melanesia, Micronesia, and Polynesia.
More developed regions: all countries in Europe, North America, Australia, New Zealand, and Japan.

Source: UN, 2003.

Sustainable use and management of natural resources 11

 Drivers of resource use

is projected to take place in the developing parts of 2.2 Economic growth

the world, where the needs are greatest, and will be
particularly rapid in the least developed countries. Ensuring economic growth is a central objective
of policy-making. The key indicator of economic
The population of the developing countries is growth is GDP, which is a measure of the value of
projected to nearly double over the next 50 years, products and services created by an economy.
but to stagnate or even decline in the industrialised
countries. Population growth is therefore a Worldwide, economic growth over the past 30
prominent driver of resource consumption in years has averaged about 3 % per year, more than
developing countries, but has ceased to be a main doubling the size of the global economy over the
driving force in most European countries. period. However, there are significant disparities
between developed and developing countries. At
Nevertheless, the growing demand of increasing the turn of the century, per capita GDP in OECD
populations in developing countries will have countries was around USD (2) 25 000, compared with
an impact on the use of resources in Europe. For USD 4 000 in developing countries (Figure 2.1).
resources which are consumed or traded world-
wide, such as oil, fish and tropical timber (and in GDP growth between 1986 and 2000 was faster in
cases of global environmental problems such as the developing than in the developed world. GDP in
climate change), global population growth is a developing countries almost doubled, but increased
driver of resource use which needs to be taken into by only about 40 % in the developed world
consideration in European decision-making. (Figure 2.2). However, despite this fairly optimistic
picture based on growth rate, the actual gap
There is also a tendency for the number of between rich and the poor countries has increased.
households to increase, due to fewer people living The near doubling of GDP in developing countries
in each household, an increasing number of single was from a rather low level, while the 40 % growth
households, and longer life expectancy. This tends was on top of already high GDP in developed
to increase overall resource consumption as more economies. The situation is further aggravated by
households need to cover their needs, and the trend the fact that wealth is more unevenly distributed
is especially pronounced in the most developed in developing than in developed countries — large
countries. parts of the population in developing countries live
in poverty (UN, 2004).
Figure 2.1 Population and GDP per capita in
OECD and developing countries,
2002
Population GDP per capita Figure 2.2 Growth of GDP in developed and
(thousand million) (PPP USD) developing countries
6 30 000
Index (1986 = 100)
200
5 25 000

180
4 20 000
160

3 15 000
140

2 10 000 120

100
1 5 000

80
0 0
86

00
94
90

99
88

96

98
89

01
95
87

92
93

97
91

Developing countries OECD

19

20
20
19
19
19
19
19
19
19
19
19
19
19
19
19

Population (thousand million) Developed countries

GDP per capita (PPP USD) Developing countries

Source: UNDP, 2004. Source: WRI, 2003.

(2) Measured in purchasing power parity (PPP).

12 Sustainable use and management of natural resources

 Drivers of resource use

Figure 2.3 Growth of world trade*

structure of the economy, and patterns of production
Volume index (1950 = 100) and consumption.
5 000
4 500 The use of natural resources and the resulting
4 000 impacts are obviously strongly influenced by
3 500 the prevailing type and efficiency of available
3 000 technologies (3). Major technological innovations,
2 500 such as the steam machine or electricity, marked
2 000 the era of industrialisation throughout the 19th and
1 500 the 20th centuries. However, any revolutionary
1 000 technological change is accompanied by
500
fundamental social, institutional and economic
0
changes which create both opportunities and risks.
For example, the introduction of fossil energy-
19 4
19 1
19 0
19 3
56

19 9

77
62

19 5

19 2
68

19 0
19 3
86

19 9

95

20 8
01
7
7

9
5

8
5

9
8
19
19
19

19

19
19

19

Manufactures based technologies to replace human and animal

Mining products labour significantly improved production efficiency,
Agricultural products increased wealth and changed lifestyles, but was
* World merchandise exports (volume index = value deflated by also accompanied by an enormous increase in
unit value).
resource use, creating unprecedented environmental
Source: WTO, 2003. pressures.

World trade is another driving force of resource and In recent years, it has been argued that technology
energy consumption. It is important for achieving is one of the main drivers for achieving decoupling
economic growth, and countries need to exchange of environmental pressure from economic growth.
raw materials or semi-products in order to produce Technological change can be both the driver
final goods and services which can then be sold on and the result of socio-economic change, and it
the world market. involves changes in the means by which goods are
produced and in the characteristics of the products
The physical dimension of economic growth is themselves (OECD, 2001). But the introduction of
especially visible in the context of globalisation a new technology can be a double-edged sword: it
(Figure 2.3). The expansion of global trade has been may create or mitigate environmental pressure, and
much faster than the growth of GDP. In the second increase or reduce the use of natural resources.
half of the 20th century, global trade volumes grew
by a factor of 6 to 8 for raw materials, and as much In case of the industrialised economies, there have
as 40 for manufactures (semi-finished and finished been significant improvements in energy and
goods) (WTO, 2002). Today, it is widely taken for resource efficiency for most products and services,
granted that food, clothing or electronic devices, and technological progress has generally led to
for instance, may come from remote areas of the saving natural resources or labour (although some
world. But in analysing the impacts that they have of the per-unit efficiency gains may have been
on the environment, one should keep in mind offset by more widespread consumption). Research,
that products and commodities can cause impacts development and diffusion of new technology
throughout their life-cycle: when they are produced, are important elements in technological change.
transported, used, and finally, when they become Even though the proportion of environmentally-
waste. motivated R&D is rather small, preliminary studies
show that more than half of R&D expenditure has
had environmentally positive side-effects (Kemp,
2.3 Patterns of development 2005). As shown in Figure 2.4, expenditure on R&D
in the EU has been increasing since 1998. Overall
The third driving force of the consumption of EU research spending represented 1.93 % of GDP
resources is the pattern of development. Broadly in 2002, compared with 2.76 % in the United States,
defined, the 'pattern of development' encompasses 2.91 % in Korea, and 3.12 % in Japan. The EU policy
the types of technology used to satisfy needs, the objective is to increase public and private investment

(3 ) The very term 'technology,' when introduced by Johann Beckmann in 1769, was defined as 'the science of the processing of
natural products.'

Sustainable use and management of natural resources 13

 Drivers of resource use

Figure 2.4 Structural indicator, gross

domestic expenditure on R&D
in research to 3 % of GDP by 2010. In April 2005 the
European Commission set out plans to double the
As percentage of GDP research budget to 70 billion Euro, in an effort to
2.05 increase Europe's growth and competitiveness. The
2.00 Commission estimates that the doubling of R&D
funds will lead to a 0.96 % increase in economic
1.95
growth by 2030, and will create nearly 1 million jobs.
1.90

1.85 Another important factor is the structure of the

1.80 economy. All production activities involve the
use and transformation of natural resources. By
1.75
changing production patterns and especially by
1.70 switching from resource-intensive industries
(such as the production of metals or extraction of
00
94

03
02
99
96

98

01
95
93

97

20

20

20

20
19

19

19

19

19

19

19

resources) to less resource-intensive industries

EU (25 countries) EU (15 countries)
(such as manufacturing), the resource efficiency of a
Source: Eurostat, 2005: Structural Indicators — online (http://
europa.eu.int/comm/eurostat/newcronos/reference/
national economy can increase.
display.do?screen=detailref&language=en&product=
EU_MAIN_TREE&root=EU_MAIN_TREE/basic/strind/ Providing services also requires resource inputs
innore/ir021).
(e.g. for heating and transportation), although the
relationship with the use of resources is less evident.

Figure 2.5 Structural indicator, energy intensity of the economy

Gross inland consumption of energy divided by GPD (index, 1995 = 100)

Kgoe (kilogram of oil equivalent) per EUR 1 000

2 000

1 800

1 600

1 400

1 200

1 000

800

600

400

200

0
r d
r o EU n
ne 5

pu m
e n li c

m k
to y
G nia

Sp c e
Fr i n
Ir c e

d
yp y

L La s
xe ua ia
bo a
un g
et M r y
r l lt a
Au d s

Po ria

Sl e n l
ov i a
F i k ia

d we d
gd n
om

C r ia
m t ia
Tu ia
ey
Ja US

EU 2

ov g a
ru
E s an

C t al

m ni
-1

er r
1

Po an
pa

t e S an
zo -2

an

H ur

in e

an
L u ith t v
a
Re g i u

G ma

ga
b

an
e

an

rk
K d

Ro o a
he a

ga
st

a
Sl t u
re

el

nl
l
I
l

r
ul
ch e
ze B

B
D
Eu

ni
C

1999 2002

Source: Eurostat (2005): Structural indicators — online (http://europa.eu.int/comm/eurostat/newcronos/reference/display.do?screen

=detailref&language=en&product=EU_strind&root=EU_strind/strind/enviro/en020).

14 Sustainable use and management of natural resources

 Drivers of resource use

Box 2.1 Relative decoupling versus reduction of environmental impacts

In many EU countries, the economy in recent years has been growing at a faster rate than resource use.
The EU economy grew by almost 50 % since the 1980s, while the use of energy and renewable and non-
renewable resources remained fairly constant. This means that there has been a relative decoupling of
resource and energy consumption from economic growth. However, some environmental scientists argue
that it is not clear whether such a relative decoupling has led to any absolute decrease in environmental
impacts, given that absolute resource use has not decreased.

Service-oriented economies tend to maintain a Spring report to the European Council revealed a
fairly stable use of basic resources compared with large east-west gap in both economic performance
economies based mainly on the extraction and and the levels of energy and resource efficiency
processing of basic natural resources. Generally (CEC, 2004a). For example, the energy intensity of
speaking, the resource efficiency of an economy the Czech Republic, one of the most technologically-
is expected to improve as the share of services in advanced new Member States, is about five times
the economy increases. However, with growing higher than the EU-15 average. This is not just a
affluence, the consumption of some resources will reflection of the efficiency of the technologies used,
increase, for example fuel for private transportation but results from the structure of the economy, with
and water for household use. a significant share of GDP coming from production.
The positive trend is that several countries in central
Developed countries with advanced technologies and eastern Europe are reducing their intensity of
tend to need fewer natural resources per unit of resource use. In the long-term, such a reduction
economic growth than countries which are still could help decrease environmental pressure,
in the early stages of industrialisation. Most EU although the investment needs are significant.
Member States have already entered the stage of
'post-industrial growth', with a structural change Given these regional variations, a 'Factor 4' increase
towards a service-oriented and knowledge-based in energy efficiency as described by Weizsäcker and
economy. Lovins (1997) seems to be a necessary structural
adjustment. The latest EEA findings (2003) suggest
In the global context, however, many developing that there are differences in the EU of a factor of
countries have entered the phase of resource- four to five in material productivity as well as in
intensive industrialisation fairly recently, or will energy efficiency. Given the expected growth rates
do so in the near future. They are expected to go of the new Member States and regional spill-over
through similar technological and economic changes of technologies in central and eastern Europe,
to those in developed countries some 50 or 100 years the challenges and opportunities for eco-efficient
ago — although more rapidly. Industrialisation technological change is evident. There is also an
traditionally leads to an increase in resource use, important link between trade and technological
because it involves the introduction of technologies development, since increasing trade and foreign
which require high resource inputs (e.g. power investment can provide opportunities for more rapid
plants, steel mills and metal foundries, cement uptake of new, more efficient and environmentally-
plants). The industrialisation of large economies friendly technologies.
will therefore significantly increase resource
consumption and the pressure on the global
environment. For example China, which is already 2.4 Growing resource use in the global
developing the largest steel and coal industries in context
the world, is rapidly developing heavy industries
that follow the traditional industrial development The projected 50 % growth of the global population
pattern. Industrialisation and growth may also over the next 50 years will put a significant pressure
create opportunities for technological 'leapfrogging' on the environment. Most of the growth will be in
through technology transfer, perhaps further the developing countries, which will contain 85 % of
strengthened by the implementation of emission- the world's population within a couple of decades.
trading schemes.
Most of the developing countries are in the phase
There are also large differences between individual of early industrialisation, when the building of
countries within the EU (Figure 2.5). The 2004 infrastructure and heavy industry results in high

Sustainable use and management of natural resources 15

 Drivers of resource use

demand for materials and energy and leads to Extrapolating those per capita DMC values to a
environmental degradation. Moreover, their rapidly world population of 9 billion in 2050 leads to a
growing population will require more goods and figure of global used domestic extraction ranging
services to support their needs. How will this trend from 135 to 234 billion tonnes (excluding 'hidden
affect the use of resources and environmental flows'). This corresponds to an increase by a factor
pressures on a global scale? of 2.5 to 4.3 from 2002. The projected trend is clear.
Although these indicators focus on the consumption
The first estimates of the overall use of materials of resources, past experience shows that the
show that total material consumption (TMC) of associated environmental impacts can also be
industrialised countries ranges between 31 and expected to increase. Even if the exact relationship
74 tonnes per capita. If the rest of the world's between the increase in resource use and the
population were to adopt similar levels of material resulting environmental impacts is not yet clear,
consumption in the next 50 years, and assuming a the projected increase in resource use highlights
world population of 9 billion by then, worldwide the importance of pursuing an effective decoupling
consumption of resources including 'hidden flows' policy, including in developing countries where the
could amount to between 279 and 666 billion tonnes. growth of resource use is expected to be highest.
This would increase global material flows by a factor
of two to five (Bringezu et al., 2003). It is sometimes argued that the increased use
of resources in developing countries, fuelled by
A similar conclusion comes from using another population growth and economic development,
indicator, domestic material consumption (DMC). may outweigh any efficiency gains in industrialised
Global used domestic extraction was estimated countries, and that developing countries should
at about 55 billion tonnes in 2002 (Behrends therefore ensure that their development does not
and Giljum, 2005). The DMC of industrialised come at the expense of the environment. However,
countries ranges from 15 tonnes per capita in Japan it is interesting to examine the current patterns
to 26 tonnes in Australia (Bringezu et al., 2003). of resource use and compare the situation in

Table 2.2 World population and energy use 1971–2000

1971 2000 Change in %

Population in millions 3 754.3 6 054.1 61 %
Energy use Mt oil equivalent 5 450.0 9 938.0 82 %
Energy use per capita kg oil equivalent 1 451.7 1 641.5 13 %

Source: World Bank (World Development Indicators, 2003).

Table 2.3 Energy use and main socio-economic drivers in OECD and non-OECD countries,
1971 and 2000

OECD 1971 2000 Change in %

Population millions 885 1 132 28 %
Energy use Mt oil equivalent 3 386 5 317 57 %
Energy use per capita toe per capita 3.83 4.70 23 %
GDP billion constant '95 USD 11 804 27 733 135 %
GDP per capita constant '95 USD per capita 13 338 24 499 84 %
Energy intensity Kg oil eq./USD 0.29 0.19 – 34 %
Non-OECD 1971 2000 Change in %
Population millions 2 869 4 922 72 %
Energy use Mt oil equivalent 2 064 4 631 124 %
Energy use per capita toe per capita 0.72 0.94 31 %
GDP billion constant '95 USD 2 186 6 379 192 %
GDP per capita constant '95 USD 762 1 296 70 %
Energy intensity Kg oil eq./USD 0.94 0.72 – 23 %

Source: ETC/RWM own calculations based on World Bank (World Development Indicators, 2003).

16 Sustainable use and management of natural resources

 Drivers of resource use

developing and industrialised countries. It has therefore grew by 13 %, and energy consumption
long been argued that the industrialised countries grew more rapidly than the population.
are responsible for a disproportionally high share
of global resource consumption, leading to the Energy consumption is not evenly distributed
north-south divide, and giving rise to concerns (Table 2.3). In 1971, about 885 million people lived
about global social equity. Whether these claims are in the OECD countries. This affluent quarter of the
justified can be illustrated by the example of energy world's population consumed around 62 % of the
use. world's energy. In 2000, the share of population of
the OECD countries decreased to around 19 % but
Fossil energy carriers as an illustration of global they still consumed 54 % of global energy supply.
resource consumption patterns The remaining 80 % of the world population
consumed less than half of world energy use. Put
While there are sufficient data on the development differently, the population of OECD countries
of population and economic performance consumes about five times more energy per capita
worldwide, overall consumption of natural than the rest of the world, and in absolute figures,
resources is only known for a small, although significantly more energy than the developing
increasing, number of countries. However, in world.
the absence of sufficient data on global resource
use, the consumption of fossil energy carriers can From Table 2.3 it can also be seen that the OECD
provide insights into the global consumption of countries managed to improve their energy intensity
resources, and help put European resource use by 33 % over three decades, mainly through
into perspective. Because of the physical and investment in new technologies and a shift towards
socio-economic implications of the energy sector, service-based economies. They achieved a relative
lessons can be learned about the use, geographic decoupling of economic growth from energy use
distribution and management of natural resources in (84 % economic growth compared with 57 % growth
general. in energy consumption). The non-OECD countries
reduced their energy intensity by 23 %, but their
There are several reasons why energy can be used economic development was accompanied by a
as illustration for resource use patterns. First, fossil steep increase in energy use (70 % economic growth
energy carriers are a key resource in industrialised compared with 124 % increase in energy use), which
societies, and make up a significant part of total confirms that early industrialisation is generally
resource consumption. Secondly, energy is always accompanied by increasing resource use.
required to extract and process other natural
resources, such as steel or cement, and economic In general, there are some examples that the
activities in these primary sectors are therefore consumption of material and energy in Europe
reflected in energy use. Last but not least, good has relatively decoupled from economic growth
quality data on fossil energy carriers is available for (although there are few cases of a documented
many countries. decrease of environmental impacts). Given the
continued increase in resource use in absolute terms,
As Table 2.2 shows, the world's population increased Europe is still contributing to an increasing pressure
by 61 % between 1971 and 2000 and energy use on global resources (see Box 2.1 and Chapter 5 for
by 82 %. Average per capita energy consumption more details).

Sustainable use and management of natural resources 17

 Natural resources and their use

3 Natural resources and their use

A wide range of activities of the world's population such as fish stocks, forests and water, the key
— extraction of resources, industrial production, challenge is to ensure their sustainable regeneration
consumption of goods and services, mobility, by safeguarding the reproductive capacities of
leisure — results in massive flows of materials. ecosystems (also known as 'maintenance of natural
Raw materials are extracted, transformed into capital').
products and goods, transported to other parts of
the world and, sooner or later, released back to the Other limits result from the finite ability of the
natural environment as waste or emissions. environment to act as a 'sink' to absorb discharges
and emissions of pollutants and wastes without
The Earth is a closed material system, and this sets serious damage. For example, human-induced
certain limits to economic growth. These are clearly carbon dioxide emissions are already causing
related to the availability of natural resources, climate change, and the ozone layer is and
where the environment plays the role of a 'source'. continues to be damaged by CFC emissions. The
For some non-renewable resources, including contamination of groundwater and soils by large
many metals and construction minerals, security of quantities of wastewater is another example of how
supply does not currently give cause for concern; human activities can affect the environment.
for others, such as fossil fuels and land, availability
is already becoming a problem which is almost This chapter begins with a brief analysis of
certain to grow. For many renewable resources, material flows in Europe, as this provides the

Figure 3.1 Economy-wide material balance scheme (excluding water and air)

Input Economy Output

Domestic extraction: Material accumulation

· fossil fuels (net addition to stock)
· minerals
· biomass To nature
· emissions to air
· waste landfilled
Material throughput · emissions to water
(per year) · dissipative use
Unused domestic extraction

Unused domestic extraction

Imports Exports

Indirect flows Indirect flows

associated to Recycling associated to
imports exports

Note: Water flows are excluded because they represent enormous mass flows (one order of magnitude more than all other
materials). Accounts for water flows should therefore be drawn up and presented separately (Eurostat, 2001). Air is omitted
for the same reason. Emissions to soils are included in the category 'dissipative use'.

Source: Eurostat, 2001.

1 Sustainable use and management of natural resources

 Natural resources and their use

most aggregated indicator of resource use. We 3.1 Material flows and material
then discuss the state and the trends regarding intensity
the use of selected non-renewable and renewable
resources: fisheries, forestry, water, fossil fuels, The entire life cycle of material resources, from
metals and construction minerals, and land. extraction, through use in the production and
While these examples do not cover all the possible consumption of goods and services, to the end
aspects of the sustainable use and management of of their useful life as waste, can give rise to
natural resources, they were chosen on the basis environmental impacts. Material flow accounting
of their policy relevance and political importance (MFA) throughout an economy is a tool for
and their ability to illustrate the various policy systematically accounting for all material input
approaches, and to ensure a mix of renewable and and output flows that cross the functional border
non-renewable resources. Chapter 4 presents some between the economy and the environment,
of the challenges to formulating a policy response, including imports and exports. The concept of MFA
using energy, fishery and land as examples. is illustrated in Figure 3.1.

Box 3.1 From pressures to impacts

One of the main concerns related to the increasing use of natural resources is the environmental impacts
that this causes. For example, environmental pressures result from discharges of pollutants, releases of
harmful substances, consumption of resources beyond reproductive capacities and conversion of natural
land into urban zones. These cause environmental impacts as changes in environmental conditions affect
human beings, ecosystems and man-made infrastructure.

There is considerable experience in quantifying the use of natural resources. Pressures can be expressed
in terms of quantities of pollutants discharged, weights or volumes of resource extracted or material
consumed, volumes of fish or timber harvested, or, at the most aggregated level, presented as material
flows in tonnes. However, converting these pressures, which are sometimes referred to as impact
potentials, into environmental impacts is much more challenging.

With current knowledge, it cannot be conclusively determined whether the relationship between the
consumption of materials or energy carriers and its environmental impacts is linear or non-linear. Some
experts argue that there is little evidence of any link — for example, the hydrological cycle will replenish
abstracted water, and new forests will compensate for timber harvested. Others believe that the relationship
is likely to be progressive rather than linear, because ecosystems can often tolerate some pressure without
damage, while further pressure will lead to rapid damage or collapse. Preliminary research shows that, as
a general rule of thumb, the higher the use of materials, energy and land, the higher the resulting impact
potentials on the environment (Van der Voet, 2004) (4).

To address this gap in knowledge, the European Commission has commissioned research to develop
an environmentally-weighted indicator of material consumption that combines mass flows and impact
potentials based on life-cycles. Other research on the life-cycle-wide environmental impact potentials of
product groups is carried out using input-output analysis.

(4) More detailed discussion of the relation between resource use and environmental impacts can be found in a recent joint study by
CML Leiden, CE Delft and the Wuppertal Institute 'Policy review on decoupling: development of indicators to assess decoupling
of economic development and environmental pressure in the EU-25 and AC-3 countries' which can be downloaded from the CML
website: www.leidenuniv.nl/cml/ssp/.

Sustainable use and management of natural resources 19

 Natural resources and their use

Figure 3.2 Composition of aggregated resource use (DMC), 2001

Tonnes per capita
40

35

30

25

20

15

10

ia

e
en
y

k
in
ce

g
om

d
ds

al

y
5

ec
al

ar
m m/
ur

an

an
an

tr
-1

pa
ug

ed
an
an
It

m
us

re
gd

bo
EU

el

nl
m
xe iu
S
rt

w
Fr
rl

en
G
A

Ir

Fi
in

er
L u lg
Po

S
he

D
K

G
et

B
d

N
te
ni
U

Fossil fuels Industrial minerals, ores Construction minerals Biomass

Source: Eurostat/IFF, 2004.

Figure 3.3 Relative decoupling of resource use and economic growth in the EU-15

Index (1990 = 100))

130

125

120

115

110

105

100

95

90

85

80
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Gross domestic product at market prices in millions of Euro (at 1995 prices and exchange rates)
Gross inland energy consumption in thousand tonnes of oil equivalent (TOE)
Emission of greenhouse gases (global warming potential, CO2 equivalent, 1 000 tonnes)
EMC (environmentally weighted material consumption) — normalised (World 95) and equally weighted scores
DMC (1 000 tonnes)

Sources: Eurostat NewCronos online database (GDP, energy, greenhouse gas emissions); van der Voet et al., 2004 (EMC);
Eurostat/IFF, 2004 (DMC).

20 Sustainable use and management of natural resources

 Natural resources and their use

Figure 3.4 Material intensity of European economies

Domestic (direct) material consumption (DMC) divided by GDP (index, 1995 = 100)
Kg per Euro

18.00

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00

ga a
gd n

ov i a
ia
Ja SA

om
B an

r ly

Sl lan a
r t ds

d w in

ay
ua a
m e

o d

ey
pu us
D ou a

h e It a d

Tu tia
el e

Es blic

m r ia
m g

te S pa l

L i L at y

ia
nl k

G any

M ia
l

5
EU 5

G r an d

or d
S a
zi

un i
in e

Po alt
th vi
b ri

er c

Ir e c
an
F i ar

r
en r

H ton

en
-1

S l vak
-2

F an

N an
ug

an
n
K ed
P o lan

w
p

rk
Re p r
ra
U

a
em s t

Ro a
re
EU

ro
g

el
ch Cy
u x Au

ul

Ic
B
et
N
/L

ze
ni
um

C
U
gi
el
B

1992 2000

Sources: Wuppertal Institute, 2005; Eurostat, 2004; van der Voet et al.,2004.

In order to monitor economy-wide material (materials and energy) was no longer proportional
flows, Eurostat (2001) has developed a number to the rate of economic growth. Two proxy
of indicators, which characterise the throughput indicators for environmental impacts (emissions of
of material resources in a national economy. greenhouse gases, and environmentally-weighted
While MFA-based indicators are considered to be material consumption) also show a similar relative
'pressure indicators,' they have proved to correlate decoupling. However, even though Europeans tend
highly with environmental impact potentials at to use resources more efficiently, we do not use
the aggregated system level (van der Voet et al., fewer resources in absolute terms. There are few,
2004), and can thus be used as a proxy for the total if any, indications of absolute decoupling, that is a
environmental impact potential of an economy decrease in actual consumption of materials, and of
(Box 3.1). energy in particular.

For the EU-15 as a whole, aggregated material use Material intensity, which is a measure of the
(e.g. domestic material consumption (DMC)) has efficiency of an economy, can be expressed by the
changed little over the past two decades, at about amount of materials consumed (DMC) per unit of
15–16 tonnes per capita per year (Moll, Bringezu GDP (5). Several factors determine material intensity,
and Schütz, 2003). However, material consumption including the structure of the economy (basic
per capita varies considerably, from some 12 tonnes/ industry and raw material processing versus hi-
capita in Italy to 38 tonnes/capita in Finland (see tech manufacturing), share of the service sector in
Figure 3.2). GDP, consumption patterns, construction activities,
and the main sources of energy (e.g. high share of
Over the past decade, relative decoupling of nuclear energy in France, use of oil shale for energy
economic growth from material and energy production in Estonia). The material intensity of EU
consumption has occurred in many EU countries Member States varies considerably, from 11.1 kg/
(see Figure 3.3 for the EU-15 as a whole). This EUR in Estonia to 0.7 kg/EUR in France (Figure 3.4).
means that the increase in resource consumption For the EU-25, the average material intensity is

(5) A debate continues among experts whether DMC, DMI or another material indicator should be used to measure material
intensity. While DMC/GDP is most commonly used, some experts point out that since DMC excludes export, this approach is
methodologically inaccurate since export — excluded in DMC — does contribute to GDP.

Sustainable use and management of natural resources 21

 Natural resources and their use

Figure 3.5 Domestic extraction (used) versus imports of materials, EU-15 1970–2001

Fossil fuels Industrial minerals, ores

Tonnes per capita Tonnes per capita
0.90
3.00

0.80

2.50
0.70

2.00 0.60

0.50
1.50
0.40

1.00 0.30

0.20
0.50
0.10

0.00 0.00
1970 1980 1990 2000 1970 1980 1990 2000
Domestic extraction used — fossil fuels Domestic extraction used — industrial
minerals, ores
Imports — fossil fuels
Imports — industrial minerals, ores
Source: Eurostat/IFF, 2004.

approximately 1 kg DMC/Euro. For comparison, this 1992–2000. However, there are large differences
is slightly lower than in the US, but twice as high as between countries. While the figures for the EU-15
in Japan. The picture is similar for energy intensity range from 0.7 kg/Euro in France to 1.8 kg/Euro
(as shown in Figure 2.5), where the efficiency of the in Greece, material intensity in most of the ten
Japanese economy is even more pronounced. new EU Members States is several times higher
than the EU average (6). This may indicate a
With two exceptions, there is a clear trend of considerable potential for improvement, although
material intensity improving over the period it should also be kept in mind that many earlier

Box 3.2 Virtual water

The amount of water consumed in the production of goods is the 'virtual water' it 'contains'. International
trade allows water-scarce countries to import high water-consuming products, thus making water available
for other purposes. The total 'water footprint' of a country is a useful indicator of its call on global water
resources.

Showing the 'virtual water' content of various goods can help increase water-awareness. For example, the
choice of diet has a major impact on 'virtual water' consumption. If the entire global population were to
adopt a western-style diet, about 75 % more water would be needed for food production.

Some examples of 'virtual water' content include:

• approximately 1 000 litres of water to produce 1 kg of wheat
• some 2 700 litres of water to produce 1 kg of eggs
• about 13 500 litres of water to produce 1 kg of beef.

Source: World Water Council, 2004, http://www.worldwatercouncil.org/virtual_water/synthesis.shtml.

(6) The magnitude of this difference will also depend on the choice of method for the calculation of GDP. The graphs used in this
report are based on GDP in constant 1995 prices, in order to be consistent with the Eurostat approach. However, if the purchasing
power parity approach had been used to calculate the GDP, the differences between old and new Member States would be much
lower (it is estimated that the material intensity figures of new Member States could decrease by some 50 %).

22 Sustainable use and management of natural resources

 Natural resources and their use

economy-wide material efficiency improvements in order to maintain its resilience and biodiversity.
have been accompanied by an absolute increase in The following sections review the examples of water
material use (growth of GDP was just faster than resources, fisheries and forests.
material consumption, so material intensity was
improving). This situation may also occur in the 3.2.1 Water resources
new EU Member States, as their integration into
the economic area of the EU may require absolute Although indestructible, freshwater is a finite
increases in material use. and precious resource essential for sustaining
life, supporting economic activities, and for the
While the relative decoupling shown in Figure 3.3 is environment itself.
undoubtedly good news, some of it may have been
achieved as a result of increased imports. In absolute Water resources in Europe are, in many locations,
terms, Europe as a whole is not using fewer material under threat from a range of human activities, which
resources, but relies increasingly on those extracted lead to problems of overexploitation and low quality
abroad. In most European countries, domestic of inland waters. There are many reasons why water
extraction of material resources has decreased resources are coming under pressure: increasing
while imports have increased, as a result of macro- populations, economic growth, intensive agriculture,
economic restructuring, rising domestic costs of rapid urbanisation, growing tourism and leisure
production, availability of cheaper products from activities, as well as the lack of proper supply and
abroad, and removal of trade barriers. This applies treatment facilities or institutional arrangements for
in particular to fossil fuels and metals, as shown in water management.
Figure 3.5.
Not all water uses put equal stress on water
The substitution of domestic production with resources. To reach the goal of sustainable water
imports takes some strain off the European management a balance has to be achieved between
environment, and results in a relative decoupling the abstractive uses of water (e.g. abstraction for
in terms of mass balance. However, some public water supply, irrigation and industrial
environmental experts point out that this means use), in-stream uses (e.g. recreation, ecosystem
that environmental pressures associated with maintenance), discharges of effluents and the
resource extraction occur in the country of origin of impacts of diffuse sources. This requires that
the commodity. Those pressures can be significant quantity, quality, and ecological effects are all taken
— for example, each tonne of imported metal can into account.
'leave behind' as much as an equivalent of 20 tonnes
of hidden flows (so-called 'ecological rucksacks'). Water quantity
Thus, as imported material resources are used
to produce goods and services in Europe, the Water and populations are unevenly distributed,
environmental burden of extraction may be 'shifted' so countries and regions experience differing
abroad. Damage may be further aggravated by the degrees of water stress. Precipitation is highest in
fact that such countries often have lower social and the western part of Europe and in regions with
environmental standards than the EU. mountains. Annual average run-off from rainfall
varies from more than 3 000 mm in western Norway
One interesting example of global burden-shifting is to less than 25 mm in southern and central Spain,
the emerging issue of consumption of 'virtual water' and is about 100 mm over large areas of eastern
as a result of global trade in agricultural products Europe. In absolute terms, the total renewable
(Box 3.2). freshwater resource in Europe is around 3 500 km3/
year.

3.2 Renewable resources Thirteen countries have less than 5 000 m3/capita/
year while the northern countries generally have
Renewable resources are characterised by their the highest water resources per capita. However,
ability to regenerate within a relatively short period. few Europeans suffer from the devastating water
For their use to be sustainable, their consumption shortages and poor water quality experienced by
or extraction rate needs to be maintained within people in many areas of the world. Overall, Europe
the reproductive capacity of the natural systems, abstracts a relatively small portion of its total water
which should also take into account the fact that for resources each year. Total water abstraction in
many renewable resources, extraction rates must Europe is about 292 km3 per year, about 8 % of the
leave enough of these resources in the ecosystem total freshwater resource. Total abstraction fell by

Sustainable use and management of natural resources 23

 Natural resources and their use

10 % between 1990 and 2001. Nonetheless, figures at central and eastern countries. Total water abstraction
such a high level of aggregation do not fully reflect in the EU-15 Member States fell by 8 to 9 % both in
region-specific factors (Box 3.4). Moreover, the water the northern and in the southern countries.
balance fluctuates continuously, not only from one
year to another, but also over the course of the year. When the water withdrawal ratio is less than 10 %,
For example, agriculture places a major demand on water stress is considered low (7). A ratio in the
water resources, particularly when the resources are range of 10 to 20 % indicates that water availability
least able to cope. is becoming a constraint on development and
that significant investment is needed to provide
The main source of abstracted freshwater in adequate supplies. When the ratio exceeds 20 %,
Europe is surface water, which typically accounts both supply and demand will need to be managed
for between 70 % and 90 % of total freshwater and conflicts between competing uses will need
abstraction. The remainder comes from groundwater to be resolved. Four countries (Cyprus, Malta,
sources, with minimal additional contributions from Spain and Italy) already withdraw more than 20 %
desalination of seawater (in Spain). While southern of the available water resources, and a further
European countries suffer most frequently from seven withdraw between 10 and 20 %. Moreover,
water shortages and quality problems, the situation some countries which are relatively water-rich on
in Europe varies considerably from place to place, a national scale have extensive arid or semi-arid
and time to time. Water availability per capita and regions. For example, there are big differences in
water exploitation index are shown in Figure 3.6. water availability between the north and south of
Spain, Portugal and Italy.
In the period 1990 to 2001, the most marked change
in total water abstraction occurred in the south- Different sectors have different demand for water.
eastern European countries (Turkey, Cyprus and The main drivers of water use are agriculture
Malta) where total abstractions increased by 40 %, (irrigation), urbanisation, population growth,
while abstraction decreased by 40 % in the northern, lifestyles, including tourism, and the need for

Box 3.3 Water protection goals in EU policies

Water resources need to be managed carefully to ensure that people have access to affordable and
safe drinking water and sanitation, without depleting water reserves or damaging ecosystems. The 6th
environment action programme and the water framework directive recognised that the major challenges in
the area of freshwater are:

• to ensure that rates of extraction from water resources are sustainable over the long term, and to
promote sustainable water use based on a long-term protection of available water resources;
• to protect, enhance and prevent further deterioration of the status of aquatic ecosystems;
• to ensure the progressive reduction of pollution of groundwater and to prevent its further pollution;
• to achieve levels of water quality that do not give rise to unacceptable impacts or risks to human health
and the environment.

Box 3.4 Economic transition and water consumption in central and eastern Europe

Economic transition in central and eastern European countries during the 1990s had a tremendous impact
on water consumption in the region. The decrease in industrial activity, especially in water-intensive heavy
industries such as steel and mining, led to decreases of up to 70 % in water abstraction for industrial use.
The amount of water abstracted for agriculture also decreased by a similar percentage. Abstraction for
public water supply declined by 30 % after the fees for water supply were increased to reflect water costs
and water meters were installed in houses.

(7) Some experts point out that reducing water use is reasonable even in countries with no overall water scarcity, given that long-
term natural variations in rainfall can cause droughts lasting several years, and high water use may cause regional and seasonal
water scarcity 'hot spots' which may result in water pollution.

24 Sustainable use and management of natural resources

 Natural resources and their use

Figure 3.6 Water availability and exploitation in Europe

Annual water availability per capita by country, 2001

Malta
Cyprus
Denmark
Czech Republic
Belgium
Romania
Poland
Germany
Spain
United Kingdom
Italy
France
Turkey
Luxembourg
Greece
Lithuania
Portugal
Netherlands
Slovenia
Austria
Ireland
Hungary
Latvia
Slovak Republic
Estonia
Finland
Sweden
Bulgaria
Norway
Iceland

0 5 000 10 000 15 000 20 000 25 000 30 000

> 1 700 m /cap/year
3
< 1 700 m /cap/year
3

Water exploitation index (WEI) by country, 1990 and 2001

Iceland
Norway
Latvia
Slovak Republic
Sweden
Slovenia
Finland
Ireland
Bulgaria
Netherlands
Hungary
Luxembourg
Austria
Estonia
United Kingdom
Denmark
Lithuania
Czech Republic
Greece
Portugal
France
Poland
Turkey
Romania
Germany
Spain
Italy
Cyprus
Belgium
Malta
%
0 20 40 60 80
WEI 2001 WEI 1990
Source: EEA, 2003: Water indicators report, TR 1/2003.

Sustainable use and management of natural resources 25

 Natural resources and their use

Figure 3.7 Trends in European water use

Water abstraction in different regions of Europe Trends in sectoral water use

Billion m3 Billion m3
120
160

140 100

120
80

100

60
80

60 40

40
20
20

0 0
1990 1992 1994 1996 1998 2000 2002 1990 1992 1994 1996 1998 2000 2002
AC (northern) Western (central and nordic) Total urban use Total industry
AC (southern) Western (southern) Total agriculture Total use for energy
Notes: Western (Central + Nordic): Austria, Belgium, Denmark, Finland, Germany, Iceland, Ireland, Luxembourg, Netherlands,
Norway, Sweden, Switzerland, and the United Kingdom.
Western (Southern): France, Greece, Italy, Portugal, and Spain.
AC (Southern): Cyprus, Malta and Turkey.
AC (Northern): Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic, and
Slovenia.

Source: EEA water quality fact sheet (9/02/05) based on data from Eurostat.

water for industrial processes and cooling at Overexploitation of groundwater occurs when
power plants. As shown in Figure 3.7, on average, groundwater abstraction exceeds recharge rates.
37 % of total water use is for agriculture, 33 % Apart from causing problems of water supply,
for energy production (including cooling), 18 % overexploitation causes deterioration of water
for urban use, and 12 % for industry (excluding quality, and leads to the drying out of water courses,
cooling). Abstractions for agriculture remained loss of habitats and wetland areas, and salt-water
almost unchanged over the period, while those for intrusion into aquifers.
urban use and energy decreased by 11 % and for
industry by 33 %. Irrigation is the most significant Large areas of the Mediterranean coastline in Italy,
use of water in agriculture in southern countries, Spain and Turkey, as well as some parts of Denmark,
accounting for 50 to 80 % of water use. In central are affected by saltwater intrusion (Figure 3.8).
Europe energy production (including cooling water), The main cause is groundwater over-abstraction
followed by urban use are generally the main users. for public water supply, including tourism.
In particular, Belgium, Germany and Estonia use Groundwater over-abstraction is also a recurring
more than half of their abstracted water for energy problem in several countries in Central Europe.
production. Tourism, one of the fastest increasing
socio-economic activities in Europe, places severe, Climatic conditions also influence water resources
often seasonal, pressures on water resources, and and thus water availability. In the 21st century, a
the increase in demand is often associated with temperature increase of between 0.1 and 0.4 °C per
recreational uses such as swimming pools, golf decade is expected in Europe. Even though there
courses, and aquatic parks as well as by a much are still some uncertainties about climate change
increased population during holiday seasons. predictions, the maximum of this temperature
increase is expected to occur in southern Europe in
Water availability problems occur when the demand the summer and in eastern Europe in the winter.
exceeds the amount available during a certain The predicted pattern of future changes in annual
period. This happens frequently in areas with low precipitation includes widespread increases in
rainfall and high population density, and in areas precipitation in northern Europe, rather small
with intensive agricultural or industrial activity. decreases across southern Europe, and small or

26 Sustainable use and management of natural resources

 Natural resources and their use

Figure 3.8 Groundwater exploitation and saltwater intrusion in Europe

-30° -20° -10° 0° 10° 20° 30° 40° 50° 60° 70° 80°
Salt water intrusion
60°
due to groundwater
overexploitation

Salt water
intrusion
Groundwater
overexploitation
No groundwater
50°
overexploitation

50° Data available

No data

Outside data
coverage

40°

40°

0° 10° 20° 30° 40° 50°

Source: EEA/ETC-W, 2003.

uncertain changes in central Europe. Most of Europe harmful effects on wetlands and aquatic ecosystems.
will become wetter in the winter, but southern It may also result in changes in the chemical and
Europe may get dryer winters. biological condition of waters and soils. Higher
winter temperatures and less precipitation as snow
The effects of climate change on water resources will will have a direct impact on the seasonal flow
vary depending on the region. Climate change will regime of many rivers.
affect both demand and availability, and may have
impacts on water-dependent ecosystems. Changes Water quality
in climate may increase demand, in particular for
agriculture and public water supply. Warming will The three prerequisites for good ecological quality of
lead to an increase in evaporation, which may have water resources are that water should be clean (good

Box 3.5 Water use and agriculture

The scale and importance of irrigation is most significant in the member countries or regions that have arid
climates, but far from negligible in most other member countries. In arid countries such as Cyprus, Malta,
Greece, parts of Spain, Portugal, Italy and Turkey, irrigation accounts for more than 60 % of water use. In the
more humid and temperate member countries irrigation is carried out mainly to complement natural rainfall,
and its share of total water use is generally less than 10 %.

In the EU-15, 85 % of irrigated land is in the Mediterranean area (France, Spain, Italy, Portugal, and Greece).
In the acceding and the new 10 countries, the major part (93 %) is in Romania and Turkey. Traditionally,
much of the irrigation in Europe has consisted of gravity-fed systems. However, in an increasing number of
regions in the north and south, irrigation by sprinklers using pressure, often drawing water from groundwater,
is the most common practice. It is often in these areas that the quantities of water used, and thus the
impacts on the environment, are the largest (IEEP, 2000).

The environmental impacts of irrigation vary considerably between countries and regions. Irrigation can affect
the environment through impacts on water quantity (e.g. lowering the groundwater table and affecting river
flow), water quality through increased content of salts and pollutants, and soil, biodiversity and landscapes.
Secondary impacts such as increased fertiliser and pesticide use also result from irrigated agriculture.

Sustainable use and management of natural resources 27

 Natural resources and their use

Figure 3.9 Concentrations of total

ammonium, BOD, nitrate, and
impacts, such as dissolved ammonia, heavy
orthophosphates in European metals, pesticides and some veterinary
rivers between 1992 and 2001 medicines.
3 mg N/l (nitrate) or µg P/l (orthophosphate) or
mg O2/l (BOD) µg N/l (ammonium) The availability of water of good quality is
determined by the pollution of groundwater and
3.5 180 surface waters. Pollutants from industry and
urban areas (point sources) to surface waters have
160
3.0 historically been the main cause of water quality
140 problems. Increased industrial production, coupled
2.5 with more of the population being connected to
120 sewerage, meant that discharges of pollutants to
2.0
surface water increased in most European countries
100
from the 1940s onwards.
1.5 80
There has been considerable progress in Europe
60 over the past two decades in reducing discharges
1.0
from point sources, and problems related to
40
oxygen-demanding substances, microbiological
0.5
20 contamination of drinking water and bathing water
quality are now largely under control. Nutrients
0.0 0 and heavy metal discharges have been markedly
reduced in some countries.
92

93

95

97

01
94

96

98

99

00
20
19

19
19

19

19

19

19
19

20

Nitrate (1 237)
Reductions in point source discharges are reflected
BOD5 (605) in markedly improved river conditions and less
BOD7 (45) eutrophication effects in lakes. The concentrations
Orthophosphate (1 033)
of orthophosphate, total ammonium and organic
Total ammonium (1 122) matter have been steadily decreasing in European
Source: ETC Water, 2004. rivers in general over the past 10 years (Figure 3.9).
During the 1990s the biochemical oxygen demand
levels improved by around 20–30 %. The reduction
water quality), there should be sufficient amount of in ammonium in the 1990s was even greater.
water, and the physical conditions in and around the Average phosphorus concentrations in European
water body should be favourable. rivers were reduced by one third during the 1990s.

Good quality of surface waters is defined in terms However, there has been far less success in
of the quality of the biological community, the controlling discharges from diffuse sources, in
hydrological characteristics, and the chemical particular from agriculture (Box 3.5). The use of
parameters. Groundwater status is determined by commercial inorganic fertilisers, in conjunction with
the chemical quality and quantitative condition increased livestock densities and concentration of
(amount of ground water). Pollutants can have a livestock production, has resulted in the application
detrimental affect on water quality in several ways: of large loads of nutrients to cultivated land.
Many of these find their way into watercourses,
• they can gradually degrade the ecological where they may cause eutrophication, and into
quality of the water (e.g. high levels of nutrients groundwater where they contaminate water supply
or sediment run-off can alter the types of flora systems. Elevated concentrations of hazardous
and fauna that the water will support); substances, including pesticides and heavy metals,
• they can impair the economic and aesthetic can still be found in many European waters.
value of the water (e.g. the presence of pesticides
and other chemicals can reduce its value as The amounts of many hazardous substances
drinking water, and high levels of faecal micro- discharged into water have been reduced markedly
organisms can render the water unsuitable for since the late 1980s — mainly because of the effective
recreational activities; implementation of environmental legislation,
• they can be directly toxic to flora and fauna, the substitution of hazardous substances with
or have endocrine-disrupting effects. Many harmless or less hazardous ones, and technological
chemicals that are released can have such improvements. Other chemicals in the environment

28 Sustainable use and management of natural resources

 Natural resources and their use

Figure 3.10 Total European capture production (landings), 1990–2000

Million tonnes

14

12

10

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Western Europe Central and eastern Europe

Notes: Western Europe: Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Monaco, Netherlands, Norway,
Portugal, Spain, Sweden, United Kingdom.
Central and eastern Europe: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Estonia, Latria, Lithuania, Malta,
Poland, Romania, Slovenia, Turkey, Federal Republic of Yugoslavia.

Sources: FAO Fishstat Plus.

are also of potential concern, but relatively little increasingly a net importer of fish — imports into
information is available about their presence and the EU-15 increased from 6.9 million tonnes in 1990,
effects on the water environment. One emerging to 9.4 million tonnes in 2003.
issue is the presence of endocrine-disrupting
substances in water, with sexual disruption in Our understanding of fish population dynamics and
aquatic animals being reported by several European the impact human activities have on them is limited.
countries. Catch statistics are not a very precise indicator
of the success of management. A decrease in the
3.2.2 Fish stocks catch of a stock can be a sign of a more responsible
quota policy, or that the stock is being overfished.
World production of fish amounted to Similarly, in economic terms, increased catches
approximately 124 million tonnes in 2000, with may be a sign that the stock is healthy and giving
Europe accounting for 15 %. The seas around more harvest, or that the spawning stock is being
Europe provide about 10 % of world fish catches depleted at the cost of future catches. Moreover,
(FAO). European fish production increased by 25 % the nature of the ecosystems, current knowledge
during the first half of the 1990s (see Figure 3.10), of stock dynamics, and the availability of fishery
then, after peaking at more than 12 million tonnes statistics allow only a limited insight into the issue.
in 1997, declined to about 11 million tonnes in 2000. The key factor affecting the status of fish resources
This corresponds well with the global trend over the is overfishing, but natural environmental change
same period. and fluctuation, anthropogenic effects on the
environment, and changes in ecosystems also have
Europe is one of the world's largest markets for an effect.
processed fish and aquaculture products, with
the value of the whole production chain (fishing, It is estimated that globally, about one third of
aquaculture and processing) exceeding 20 fish stocks are already overexploited. In European
billion Euro for the EU-15 in 1998. Europe is also coastal seas, the eastern Atlantic, the Mediterranean

Sustainable use and management of natural resources 29

 Natural resources and their use

Box 3.6 OSPAR and ten ecological quality issues for the marine environment

Under the auspices of the OSPAR Convention for the protection of the marine environment of the North-
East Atlantic, North Sea states and the European Community are developing a coherent and integrated set
of ecological quality objectives as part of an ecosystem approach. The set should help provide a practical,
scientifically-based and consistent method for implementing the ecosystem approach to the management of
human activities that affect the marine environment.

The aim is to manage '…human activities in such a way that the marine ecosystem will continue to sustain
the legitimate uses of the sea (that is, the ecosystem is healthy) and will continue to meet the needs of
present and future generations (that is, the ecosystem is sustainable).'

The ongoing work focuses on developing ecological quality objectives for ten issues:

- commercial fish species

- threatened and declining species
- marine mammals
- seabirds
- fish communities
- benthic communities
- plankton communities
- habitats
- oxygen consumption
- nutrient budgets and production.

These ten issues cover the ecological quality objectives needed at the species, community and ecosystem
level, and largely cover the range from structural (diversity) to functional (processes) aspects of the
ecosystem.

and Black Seas, many stocks are now considered to indication of changes that have occurred in the
be outside safe biological limits, and some are in a past. Of 36 assessments of the hake stock in the
critical state, either fully or overexploited. Mediterranean, 28 concluded that it is overfished
and 7 that it is fully exploited. Of 32 red mullet
The International Council for the Exploration of assessments, 18 found it overfished. Most of the
the Sea (ICES) considers all European stocks of targeted demersal fish stocks and the large pelagics
Atlantic cod and Atlantic mackerel to be at risk, stocks are considered either fully exploited or even
either because the spawning stock biomass is too overfished. For the smaller pelagics the picture
low, or because fishing mortality is too high. Stocks was more diverse, with only 2 of 14 assessments of
of eastern North Atlantic blue-fin tuna are also the anchovy stock rating it as overfished, and the
a cause of concern. In the case of North Atlantic sardine stock rated as within safe limits.
and the Baltic, most of the demersal fish stocks are
overexploited. Of the total of 78 stocks assessed by In recent years, the Black Sea has faced a crisis.
ICES in 2004, 25 were already outside safe biological Several pelagic resources, including the critically
limits and 13 were harvested outside safe biological important anchovy fishery, collapsed in 1989–1992.
limits (8). Eighteen stocks were regarded as Although some recovery has since been seen for
sustainably exploited, the situation for the rest was several pelagic stocks, fishing capacity continues
uncertain or unknown. The deep-sea fish stocks in to rise unchecked. Bonito, mackerel and bluefish
the North East Atlantic are generally also overfished. were already depleted in the 1970s and 1980s, and
landings of migratory pelagics, and anadromous
Less information on the state of stocks is available species remain substantially below earlier levels,
for species in the Mediterranean and Black Seas, with a serious risk of commercial extinction for some
and fishery landings trends often provide the only sturgeon stocks. The decline of commercial stocks is

(8) 'Outside safe biological limits' means that the spawning stock is smaller than the recommended precautionary level. 'Harvested
outside safe biological limits' means that the fishing pressure is higher than the recommended precautionary level.

30 Sustainable use and management of natural resources

 Natural resources and their use

such that in the 1980s only five stocks were exploited management in practice. All countries of the EU
compared with 26 in the 1960s and 1970s (Black Sea subscribe to the FAO code of conduct for responsible
Commission, 2002). fisheries, which defines a responsible policy as one
which ensures 'effective conservation, management
Region-specific data on highly migratory species and development of living aquatic resources with
such as tuna are scarce. The stock of blue-fin due respect for the ecosystem and biodiversity
tuna (the only tuna species for which relatively in order to provide, both for present and future
comprehensive data were available), is considered generations, a vital source of food, employment,
overexploited to fully exploited in European seas, recreation, trade, and economic well-being for
and catches exceed the sustainable level by 25 %. people.' However, the catch quotas set by the
Swordfish are also considered overexploited, except Fisheries Council in the past often have not reflected
for the albacore species in Atlantic waters. the opinion of ICES and other scientific bodies as to
stock status. Poor enforcement of the quotas agreed,
In addition to exceeding sustainable yield rates and illegal or 'black' catches have also contributed to
and the ensuing overfishing, fishery resources overfishing.
have also been affected by adverse environmental
conditions (coastal and marine pollution, land run- Therefore, even though a range of alternative
off, and climate change). For example, the existence management regimes has been introduced in the
of some species as commercially exploitable was in European seas, most of them have failed to achieve
question during the second half of the 1990s due to the policy objectives, mainly because the forces
eutrophication. driving overexploitation have not been addressed.
The greatest current environmental concerns
The consequences of overfishing are difficult to are the persistent chronic overexploitation and
quantify. The complex interactions between stocks, the fact that declining catches have not reduced
and the effects of fishing activity on non-target fishing pressures. Much work is currently going
species like the sea-bottom ecosystems, have on to address the problems: a code of conduct for
been poorly studied, compared with research on responsible fisheries in Europe has been proposed
economically-important species. There is, however, by the Commission, and a number of action plans
growing concern over the long-term effects of
fisheries on the ecosystem.
Figure 3.11 Spawning stock biomass and
The direct effects include removal of the target fishing pressure for North Sea
species such as cod and haddock resulting in cod 1963–2002
changes in the size and age structure of their
populations; reduction of biodiversity through Spawning stock biomass (SSB) Fishing pressure (F)
Tonnes
killing non-target populations of fish (discards),
300 000 1.35
and seabirds, marine mammals, turtles and benthic
marine life; and structural alterations to the seabed 250 000 1.15
habitat by fishing and other human activities. The 0.95
indirect effects include changes in the food web 200 000
impacting the predators and prey of the species 0.75
150 000
affected; environmental effects of dumping discards 0.55
and organic detritus (e.g. offal); and mortality 100 000
0.35
caused by lost fishing gear ('ghost fishing').
50 000 0.15
The growing concern over the long-term effects 0 – 0.05
of fisheries on the ecosystem is reflected in the
84

02
19 0

20 9
19 6

19 6
19 3

69

19 7

19 3
78
72

19 1
75

9
6
6

9
9
9
8

recent emphasis on ecosystem management. One

19

19
19
19
19

19

SSB F 2–4
interesting example of how the issue of ecological
quality of the marine environment is addressed Note: The black line corresponds to the precautionary
spawning stock biomass (SSB) level of 150 000 tonnes
is the work of OSPAR based on the ecosystems and the precautionary Fishing pressure of F = 0.65.
approach (Box 3.6). F is an indicator of fishing mortality represented as a
logarithmic function of catch per stock of given age
groups (F 2–4 means fishing mortality of year classes 2
The case of fisheries is a prime example of a policy to 4-years old), F = 10 is 100 %.
effort that has not resulted in sustainable resource Source: ICES, 2003.

Sustainable use and management of natural resources 31

 Natural resources and their use

and strategies have been adopted by the Community which in turn may result in a need to reduce fish
as part of the reform process, such as measures farming of predatory fish like salmon and trout.
to counter the socio-economic and regional Further consequences of industrial fishery (e.g. on
consequences of fleet restructuring, reprogramming sand eels) could be a decrease of food supply for sea
of structural aid, and including social measures. birds such as black-legged kittiwakes.

In the following section, the use and management The case of the North Sea cod provides an important
of fish as a renewable resource is illustrated by the lesson about the sustainable use and management
example of the cod. Exploitation of cod stocks has of fish stocks: there is an economic benefit in letting
attracted considerable public attention in recent stocks and fish grow, instead of keeping them
years. It is an example of a marine fish resource at today's low levels. In the long run, managing
under pressure, and it is one of the best-studied renewable resources sustainably can bring about
stocks, with relatively good data on population positive synergies between ecological, social and
dynamics and human exploitation. economic factors.

For cod in the North Sea (Figure 3.11) the spawning There does not need to be a trade-off between
stock biomass (SSB — shaded area) has been below the economy and ecology, and the two can be
the recommended level for more than 20 years. reconciled. The sustainable use and management of
Fishing pressure (the fluctuating line) has been fish stocks can lead to obvious economic and social
above the precautionary level (horizontal line) since benefits, by creating larger yields and allowing a
1971. For the cod stocks in the North Sea, Skagerrak, stable development of local fishing communities.
the Irish Sea and the areas west of Scotland, the Ensuring the natural regeneration of its biological
International Council for the Exploration of the Seas base is the physical prerequisite for the future of
(ICES) has recommended a total stop to the fisheries. European fisheries.
The same applies to the coastal cod off Norway.
3.2.3 Forests
Overfishing of the stock for so many years has
resulted in a small and young spawning stock and Forests are a natural resource for which the
poor recruitment. In the periods where spawning notion of sustainable management has a very long
stock biomass was above the precautionary level tradition. Already in the fifth century BC Plato
of 150 000 tonnes, the average number of recruits wrote about the effects of unsustainable practices
(measured as one-year-old fish the year after) was regarding forests, referring to the deforestation of
390 million. During the period 1988–2002, when the the hills around Athens as a result of logging for
spawning stock biomass was below the precautionary shipbuilding and to clear agricultural land. In fact,
level, recruitment was less than 250 million. the very term 'sustainable' was first used to refer to
the sustainable yield of forest resources in the 18th
For North Sea cod, the optimal catch age/size is 6–7 century by von Carlowitz, who stressed that forest
years when the fish weigh about 8 kg. Up to this resources should be used with caution to achieve
age, individual growth outweighs natural mortality. continuity between increment and felling.
Included in these calculations is the fact that larger
fish are more expensive per kg than small fish (9). Forests, which account for 36 % of Europe's territory,
Projections show that a shift of fishing pressure provide a wide range of functions. Ecological
would give a higher spawning stock biomass and functions include maintaining the physical
the annual value of the yield could double from and chemical stability of the soil, protection of
around EUR 200 to 400 million. groundwater and local climate, and conserving
biological diversity. Economic functions include the
One example of the inter-relationships of the marine production of wood and non-wood products, and
eco-web is the issue of the food requirements of an generating employment in forest-related industry
increased stock of North Sea cod, and its impacts chains. Social functions include supporting tourism
on other fisheries. The present North Sea fishery is and leisure, eco-education and the landscape.
dominated by the industrial fishery for sprat, sand-
eels, blue whiting and other small pelagics, which Forest area in most European countries is increasing
is the basis for fishmeal and oil. Increased stocks by an average for the EEA-31 of about 0.5 million ha/
of larger fish would probably reduce this fishery, year, with the Mediterranean countries, particularly

(9) Prices for Barents Sea cod are used. North Sea auction prices are considerably higher. With better management and more normal
catches prices will probably decrease, although they may be higher than Barents Sea prices due to closeness to the market.

32 Sustainable use and management of natural resources

 Natural resources and their use

Figure 3.12 Economic yield per recruit

(1-year olds) for North Sea cod
switch from coal as a fossil fuel, and the contraction
of energy-intensive sectors, especially in central and
EUR/recruit eastern European countries. This brought about
1.80 positive effects for forests and forest soils.
1.60
While the pressure on forest ecosystems from
1.40
acidification has decreased, more evidence of
1.20
climate change and its impacts on forestry has
1.00 appeared over recent years. Climate change is
0.80 expected to lead to increased abiotic and biotic
0.60 disturbances, including drought, salinisation,
0.40 increased spring and autumn frost risk, and
0.20
insect and pathogen damage. On the other hand,
it has been observed that changes in average
0.00
1 2 3 4 5 6 7 8 9 10
air temperature, precipitation, elevated CO2
Caught at age concentrations and changes in nitrogen deposition
Sources: ICES, Institute of Marine Research, Norway. can result in increased forest growth.
Calculations by Album, 2004.
Over two thirds of Europeans live in urban areas,
where forests have an important function as a
Spain, southern France, Portugal, Turkey, Greece green buffer between expanding urban areas. In
and Italy reporting the largest increases. Several many rural areas, populations are declining and
countries (Finland, Bulgaria, Latvia, Poland, agricultural land is being abandoned for social
Romania, Sweden and Turkey) showed a decrease and economic reasons. As forestry offers a good
in 'forest area available for wood supply' which alternative land use option, financial support is
indicates an increasing focus of their national policies granted for the conversion of agricultural land
towards non-wood goods and services such as nature into forestry (it is a strategy of the EU common
protection and conservation. As the growth rate is agricultural policy to set aside agricultural land
above the felling rate, the timber stock is increasing. to counter over-production). However, in regions
where open space is scarce, land use competition
However, the vitality of a tree is reflected mainly by and resulting forest fragmentation can have a
the condition of its crown, and crown condition in negative impact on forest stability and biodiversity.
European forests is strongly affected by atmospheric Forest fragmentation, leading to smaller
pollution. During recent decades, European management units, can negatively affect the cost-
forests have been under considerable pressure effectiveness of forest operations.
from industrial emissions, showing a continuous
deterioration in crown condition between 1989 and The largest forest-related industry chains include
1995. Results since 1995 show a stabilisation at a high forestry, production of wood and non-wood
defoliation level, with almost a quarter of the sample products, and pulp and paper industries. In 2000,
trees rated as damaged in 2003 (UNECE, 2004). about 2.2 million people were employed in the forest
sector (including: 'forestry' and 'wood and pulp
Industrial emissions of sulphur dioxide and nitrogen and paper industries') in the EEA countries, with
oxide decreased substantially in the 1990s, as a result the wood industries accounting for 43 %, pulp and
of the installation of desulphurisation systems, the paper for 35 % and forestry for 22 % of the total.

Box 3.7 Criteria and indicators for sustainable forest management

Criteria and indicators are needed to monitor the multiple roles that forests play in society. Six
pan-European criteria developed by the conference on the protection of forests in Europe cover:

• global carbon cycles

• forest ecosystem health and vitality
• productive functions of forests (wood and non-wood)
• biological diversity
• protective functions in forest management (notably soil and water)
• socio-economic functions and conditions.

Sustainable use and management of natural resources 33

 Natural resources and their use

Box 3.8 Agriculture, biomass, and renewable energy

Biomass from agricultural harvest constitutes the largest part of biomass resource use. It is determined
mainly by the demand for food, and particularly by food consumption patterns (e.g. meat versus vegetarian
food) and by the way biomass is processed into food products. In general, Europe's relatively constant
population means that biomass use that is driven by food demand is expected to remain fairly stable. A
significant share of the biomass consumed in the EU is imported. In particular, the import of soybeans for
fodder is increasing, which exerts certain pressures on the global environment and thereby significantly
contributes to the global land use requirements caused by the EU. European agriculture policies (CAP) and
consumer consumption patterns are key drivers of the volumes of different agricultural products.

Recently, energy-related policies have provided incentives to encourage the use of biomass, especially
biofuels, for the production of renewable energy. Environmental and cost-effectiveness considerations
need to guide the use of biomass for energy purposes. First, the use of biomass for transport fuels is
rather inefficient, and alternative uses of biomass, e.g. for heating, may result in a greater reduction in the
environmental burden caused by fossil fuel use. Second, there is limited amount of land available within
the EU and also at the global level to be used for this purpose. Given the growth in global food demand,
large areas of land are unlikely to be available for non-food biomass production without the need for a large
increase in production intensity which is likely to have significant negative environmental effects.

In several European countries, the contribution Many of its objectives have been achieved but a
of forest-related manufacturing sectors to GDP is few important issues remain open. Some experts
considerable, as shown in Figure 3.13. argue that there has been limited integration of the
strategy into existing national forest programmes,
In most EEA member countries, the growing stock has and work needs to be done to achieve a more
allowed a steady increase in the consumption of all integrated approach to forest policy. Ecological and
forest products and thus an expansion of forest-based sustainability concerns will need to be taken into
industry. Between 1992 and 2002, the consumption account in forest management.
of forest products in the EEA countries increased
by between 15 and 45 %, depending on the product Sustainable management of the expanding forests
category. The consumption of durable products will have to include growing ecologically-adapted
like 'sawn wood' showed the lowest increases and species, and addressing the acidification of soils
'wood-based panels' the highest. The consumption of and climate change (Box 3.7). Biodiversity loss and
products with a short life-span more than doubled. habitat change will be of concern if the increase in
forest area is the result of conversion of native bush
On the other hand, although the value of forest and scrubland to plantations based on the use of
products has increased in absolute terms, the share introduced tree species not suitable for local soil and
of GDP represented by forest-based industries habitat conditions.
has decreased from 2 to 1.3 % over the past 20
years. One of the reasons is the general decrease in
unit prices, in particular for solid wood products. 3.3 Non-renewable resources
Declining prices for forest products are a serious
problem for sustaining forestry operations at a level The term 'non-renewable' refers to resources whose
that guarantees optimal forest stand development, natural regeneration cycle is extremely long. For
and employment in forestry has been decreasing example, fossil fuels and soils do regenerate, but this
steadily. On the positive side, intensified competition takes thousands of years. As a result, non-renewable
and technological innovations which have changed resources are generally regarded as finite, and their
the wood industry allow low quality timber and consumption as 'irreversible'.
timber of small dimensions to be processed into high
quality and valuable products. This has led to an There are various ways of reducing the use and
increase in the share of panel consumption relative impacts of the consumption of non-renewable
to that of other forest products like sawn wood, thus resources. One option is to decrease the pressures
protecting old-growth forest resources. arising over the whole life-cycle of a resource, from
extraction to waste. This includes more efficient
In 1997, the EU adopted a forest strategy for the production or improved efficiency of use, as with
period 1998–2003, which is now under revision. more fuel-efficient cars, or aluminium cans with

34 Sustainable use and management of natural resources

 Natural resources and their use

thinner walls. Another possibility is to extend their a par with negative environmental impacts. As the
life-cycle, by maintenance, reuse, and recycling. The availability of future supplies of non-renewables
substitution of some non-renewables by renewable will depend on the rate of consumption, they go on
resources can also be an option (e.g. increased use to recommend that their sustainable management
of wood in some construction, or substitution of should be based on the precautionary principle and
petroleum by biofuels), although this may be limited prevention: reduction, recycling and substitution.
by the reproductive capacities of nature and the
space available to produce renewable resources, There also remains the question of justice and
and should be carefully assessed to avoid problem intergenerational equity. The World commission on
shifting (Box 3.8). environment and development (Brundtland, 1987)
report suggested that the use of resources should
The recent direction of policies related to the use of be managed in such a way that future generations
non-renewable resources is based on the premise should neither be burdened with the negative
that '… there is little evidence that scarcity of non- environmental impacts of our consumption of
renewable resources is a serious threat to sustainable resources nor be unable to cover their needs using
development…(10)' This may be true for many existing natural resources.
resources, such as iron ore or bauxites and most
construction minerals. However, for other resources, The following sections discuss four non-renewable
such as fossil fuels and land, scarcity is a more real resources: metals, construction minerals, fossil fuels
threat. With this 'irreversibility' of consumption of and land.
a finite resource, some participants in the policy
debate argue that scarcity should be considered on 3.3.1 Metals

The consumption of metals, and the resources

Figure 3.13 Share of forest-related
used in their production, is a good example of
manufacturing activities in total
gross value added, selected how international trade flows determine the extent
European countries 2000 and location of environmental pressures. Most of
the metal ores used in Europe are imported. Total
Austria metal ore consumption was about 220 million
Belgium
Czech Republic
Germany
Denmark Figure 3.14 Metal ores: domestic extraction,
Spain imports, exports, and domestic
Finland consumption, EU-15, 1970–2001
France
Greece Million tonnes
Hungary
Iceland 300
Italy
Lithuania 250
Luxembourg
Netherlands
Norway 200
Portugal
Romania
Sweden 150
Slovakia
United Kingdom
100
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0
Percentage of total gross value added
50
NACE DD: Manufacture of wood and
wood products 0
NACE DE: Manufacture of pulp, paper and 1970 1975 1980 1985 1990 1995 2000
paper products; publishing and printing
Imports
Domestic consumption
Note: Note that the graph does not inlude the NACE section
A category (agriculture, forestry and hunting) as data Exports
were not available to disaggregate it into individual Domestic extraction
components.
Source: Eurostat/IFF, 2004.
Source: Eurostat NewCronos online database.

(10)
Page 13, COM (2003) 572.

Sustainable use and management of natural resources 35

 Natural resources and their use

Table 3.1 Production and consumption of selected metal resources, 2001

    World European United Japan Africa Latin- China

Union States america
(EU-15)

Iron and steel

Production of iron million tonnes 1051 22 63 0 46 249 224
ore
share in world 100 % 2 % 6 % 0 % 4 % 24 % 21 %
production
Apparent million tonnes 765 142 103 73 15 40 170
consumption of
share in world 100 % 19 % 13 % 10 % 2 % 5 % 22 %
steel
consumption
kg per capita 125 376 362 576 19 77 134
Bauxite and
aluminium
Production of million tonnes 146 0 0 0 18 36 8
bauxite
share in world 100 % 0 % 0 % 0 % 12 % 25 % 5 %
production
Apparent million tonnes 24 5 5 2 0 1 3
consumption of
share in world 100 % 20 % 23 % 8 % 2 % 4 % 15 %
primary aluminium
consumption
kg per capita 3.9 12.6 19.1 15.8 0.5 1.6 2.7
Copper
Mine production of million tonnes 13.63 0.18 1.34 0 0.52 6.05 0.56
copper
share in world 100 % 1 % 10 % 0 % 4 % 44 % 4 %
production
Apparent million tonnes 15.52 1.84 1.8 1.43 0.41 4.03 1.43
consumption of
share in world 100 % 12 % 12 % 9 % 3 % 26 % 9 %
copper
consumption
kg per capita 2.5 4.9 6.3 11.2 0.5 7.7 1.1
Zinc
Production of zinc million tonnes 8.96 0.67 0.84 0.04 0.23 1.85 1.57
share in world 100 % 7 % 9 % 0 % 3 % 21 % 18 %
production
Apparent million tonnes 8.65 2.16 1.11 0.63 0.16 0.58 1.46
consumption of
share in world 100 % 25 % 13 % 7 % 2 % 7 % 17 %
zinc
consumption
kg per capita 1.4 5.7 3.9 5 0.2 1.1 1.1
Lead
Mine production of million tonnes 3.00 0.19 0.47 0.01 0.15 0.47 0.60
lead
share in world 100 % 6 % 16 % 0 % 5 % 16 % 20 %
production
Apparent million tonnes 6.43 1.74 1.69 0.28 0.13 0.41 0.65
consumption of
share in world 100 % 27 % 26 % 4 % 2 % 6 % 10 %
lead
consumption
kg per capita 1.1 4.6 5.9 2.2 0.2 0.8 0.5
Nickel
Mine production of million tonnes 1.23 0.02 0 0 0.07 0.22 0.05
nickel
share in world 100 % 2 % 0 % 0 % 5 % 17 % 4 %
production
Apparent million tonnes 1.11 0.41 0.13 0.16 0.03 0.02 0.09
consumption of
share in world 100 % 37 % 12 % 15 % 3 % 2 % 8 %
nickel
consumption
kg per capita 0.2 1.1 0.5 1.3 0.0 0.1 0.1

Sources: ETC/RWM calculations based on Natural Resources Canada, 2002; International Iron and Steel Institute, 2002; and World
Bank, 2003.

36 Sustainable use and management of natural resources

 Natural resources and their use

Figure 3.15 Apparent steel consumption,

tonnes in 2001, but only 20 % of this was produced imports of iron and steel, and CO2
domestically. Domestic extraction of metal ores emissions from metal production,
declined from 150 million tonnes in 1971 to 43 EU-15, 1995–2001
million tonnes in 2001 (Figure 3.14).
Index (1995 = 100)
The metals with the highest consumption in the EU- 160
15 include steel and iron, aluminium, zinc, copper
and lead, as shown in Table 3.1. The EU-15's share of 140

the total global consumption of metals ranged from 120

12 % for copper to 37 % for nickel.
100

Trends in use, and the related environmental 80

impacts, vary from one metal to another. The main
problems for steel and aluminium are the volumes 60

used and energy consumption, for lead and 40

cadmium it is eco-toxicity and health impacts, while
for copper and precious metals the amounts of waste 20
1995 1996 1997 1998 1999 2000 2001
generated during production are of main concern.
Apparent steel consumption (million metric
All phases of the life-cycle of metals, from mining tonnes finished steel products)

through production and manufacturing to use Carbon dioxide emissions by metal

production (1 000 tonnes)
and final disposal, are environmentally relevant.
Extraction processes are often very damaging to Imports ECSC steel product from third
countries, EU15 (1 000 tonnes)
landscapes, and mining wastes are the largest
waste stream in Europe. A number of metals, such Source: International Iron and Steel Institute, 2003; Eurostat.
as gold, nickel and copper, are extracted with
environmentally-intensive mining technologies,
resulting in large quantities of waste, contamination final products are stocked within the economy for
of soils, landscape destruction and negative effects several years, as they are used mainly in durable
on natural water cycles (see e.g. Kippenberger, consumer goods (including private buildings)
1999; IIED/WBCSD, 2002; Ayres, 2003; Miranda and infrastructures, including the capital stock of
et al., 2003). The further stages of processing, industries (i.e. machinery equipment and industry
i.e. concentrating and refining crude metal ore, buildings). For some metals, such as copper,
smelting, forming, etc. are very energy-intensive. zinc and tin (heavy metals) dissipative losses
This uses other non-renewable resources (e.g. fossil and corrosion during use may be of concern. For
fuels) and leads to air emissions, which contribute to example, high concentrations of some heavy metals
environmental problems such as climate change, air in sewage sludge stem from diffuse sources such as
pollution and acidification. zinc-coated steel products and copper-based roofs,
gutters and water pipes.
The environmental impacts of the use phase are
determined mainly by the final product in which Steel is a very important metal resource because of
the metal is embodied, and have less to do with the high quantities in use and the environmental
the nature of the metal itself. Here, the energy used impacts caused by energy-intensive processing.
by the end product is relevant, for example for In the EU, most of the iron ore needed to produce
heating buildings, fuelling transport vehicles, or steel is imported. Significant amounts of iron
providing electricity for refrigerators, electric and ore are still mined only in Sweden (International
electronic equipment. However, there are inherent Iron and Steel Institute, 2003). However, Europe
methodological difficulties in setting up clear is among the world's top steel producers and
system boundaries to account for the environmental consumers, accounting for about 20 % of the world's
impacts of metals over the entire life cycle. crude steel production. This is another example
of increasing imports of semi-manufactured and
Metals generally have a long life-cycle and only a finished products. While driven mainly by economic
small fraction of the metal input per year ends up factors, such substitution may help reduce domestic
immediately in the waste stream, like metals in environmental pressures, with environmentally-
short-life products such as packaging material (e.g. intensive processing 'outsourced' to the rest of the
aluminium cans). Otherwise, most of the metals in world, while net consumption has not decreased.

Sustainable use and management of natural resources 37

 Natural resources and their use

Figure 3.16 Recycling flows of aluminium

Recycling potential:
Aluminium ores Transport devices 90 %
Mechanical engineering incl. optics 80 %
Building and construction 80 %
Other 0 % or unknown

Primary AI
(primary fraction
72 %) Mould casting
semimanufacturing Consumers
Secondary AI final manufacturing Domestic use
(secondary
fraction 28 %)
New scrap filings Old scrap

Scrapings,
premolten AI Waste management

Scrap-composition
A B
3 % premolten AI
16 % scrapings A/(A+B)
24 % filings
recycling rate
24 % other new scrap
Recycling Disposal
33 % old scrap

Source: Bringezu et al., 1995.

Figure 3.15 shows that the apparent (11) consumption in the total input to production/smelting) for
of steel in the EU-15 increased by about 10 % silver, copper and lead exceeds 50 % and is about
between 1995 and 2001 while estimated CO2 35–50 % for steel, aluminium and zinc. However,
emissions from metal production decreased slightly. the amounts of metals currently being recycled
At first sight, this may indicate a decoupling cannot substitute for all primary metals because
of environmental pressures from resource use. of the continuing increase in demand. In this
However, imports of steel products have been context, the large amounts of metals stocked in
increasing, replacing domestically-produced buildings, infrastructure and durable goods may
products, and the CO2 emissions related to the be seen as future metal sources, rather than future
imported steel are emitted and accounted for in the wastes. However, increasing the recycling of metals
exporting country. requires adequate product design that facilitates
the dismantling of products after their useful life
Recycling is the most common way of extending (e.g. end-of-life vehicles, electrical and electronic
the life-cycle of metals. It saves primary raw equipment, machinery), and economic feasibility
material inputs, and reduces the extraction of and environmental benefits need to be carefully
crude metal ores and the associated environmental analysed.
impacts. Processing secondary raw metals is also
in many cases less environmentally intensive Monitoring of recycling is not as straightforward
than producing primary raw metals, particularly as one may expect. There are several ways of
in the case of aluminium. For some metals, high measuring recycling rates (see Figure 3.16). Many
recycling rates have already been achieved — the indicators are used, including the composition of
share of the secondary fraction (the share of scrap scrap reused in secondary smelters, the fraction of

(11) Apparent consumption = production + imports – exports. The statistical term 'apparent' indicates that a given figure is a result
of calculation including various factors and estimates. For instance, 'apparent consumption of steel' is calculated as domestic
production of steel plus imports, minus exports. Estimates are used to convert processed goods containing steel (e.g. ships, cars)
into steel weight equivalent.

38 Sustainable use and management of natural resources

 Natural resources and their use

reused material per total amount of waste produced, tonnes per capita) per year. Construction minerals
the recycling rate of old scrap, and the amount of are mainly extracted and used domestically, and
old scrap used for the production of aluminium. trade is less significant.

Recycling of scrap and processing of secondary Construction minerals have a rather long life. The
aluminium is also interlinked with additional energy specific environmental impacts per tonne may be
and material flows, and evaluations should take relatively moderate but the volumes are very high,
account of the overall environmental impact of these making construction minerals environmentally
flows. In some cases, recycling may be associated significant.
with a higher burden on the environment than the
route of primary processing. In such cases high As with metals, environmental pressures arise
recycling rates are counterproductive. Recycling during the entire life-cycle. Extraction processes tend
rates per se may therefore not be an indicator of to be very damaging to landscapes, generate noise,
progress towards sustainability, and additional and have negative impacts on biodiversity, although
information may be necessary to make an informed they are less damaging than the extraction of fossil
judgment. fuels or metals. The subsequent processing stages,
such as the manufacture of cement, glass, ceramics,
3.3.2 Construction minerals bricks and tiles, are of high environmental relevance.
They are very energy-intensive and result in large
Construction minerals include sand, gravel, natural amounts of air emissions. In Germany, for example,
stones, clay, limestone, and other less-used minerals, about 5 % of total CO2 emissions are directly emitted
such as quartz, chalk, anhydrite and gypsum. Sand by this manufacturing sector (12), not including
and gravel, followed by natural stone, account for by indirect emissions, for example from the electricity
far the largest share of use of construction minerals, used (FSOG, 2003).
as demonstrated by the example of Germany in
Figure 3.17. Construction materials are then used in buildings
and infrastructures, with a life expectancy of 30
In the EU-15, domestic material consumption of years or more, whose use is characterised by high
construction minerals increased somewhat during environmental maintenance costs. As with metals,
the 1990s, to around 2.6 billion tonnes (about 7.0 the environmental impacts of the use phase are
determined mainly by the structures in which they
are embodied rather than by the material itself. In
Figure 3.17 Use of construction minerals in fact, many experts argue that the environmental
Germany, 2001

2%
5%
Figure 3.18 Annual domestic consumption
9% of construction minerals, EU-15
1970–2001

Million tonnes
49 % 3 000

2 500

2 000
35 %
1 500

1 000

500
Sand and gravel Clays
0
Natural stone Others
00
19 4

19 4
19 0
19 0

19 8

19 6
20 8
19 6
19 2

19 2
78
72
70

76
74

9
9
9
9
9
8
8
8
8
8
19
19
19
19
19
19

Limestone and dolomit

Source: Federal Statistical Office, 2004. Source: Eurostat/IFF, 2004.

(12) NACE code 26, manufacturing of cement, glass, ceramics, tiles, etc.

Sustainable use and management of natural resources 39

 Natural resources and their use

impacts of the use and disposal of construction Land requirements for buildings could be
minerals are much higher than those of extraction. reduced through construction on brownfield
Buildings have high energy requirements for sites (abandoned industrial areas) or a higher
heating, cooling and lighting. The larger the stock concentration of buildings in urban areas. Finally,
of buildings, the higher the maintenance costs. the construction of buildings and infrastructures
Increasing transport infrastructures may induce could move to designs where less construction
additional traffic, which is one of the most important materials are required. Innovations in design and
driving forces of climate change. Similarly to metals, planning are also needed to reduce the energy
the accounting of life-cycle impacts here is hindered requirements of buildings and infrastructures.
by difficulties in setting up system boundaries, to
avoid the problem of double counting. Finally, an important issue related to the
increasing consumption of construction minerals
After the use phase, construction minerals become is the transformation of land into built-up area,
demolition wastes, which constitute about one third accompanied by significant losses of its basic natural
of total waste generated in Europe (EEA, 2003). functions (Section 3.3.4).
Recycling of construction minerals may reduce
the need for the extraction of virgin raw materials. 3.3.3 Fossil fuels
However, the amount of demolition waste that can
potentially be recycled is only about 0.8 tonne per Fossil fuels are one of the most important and
capita annually, compared with 7 to 8 tonnes per strategic natural resources in modern societies. Since
capita of excavated virgin raw materials. This means the invention of the steam engine, fossil fuels have
that secondary construction minerals can only been the primary natural resource for satisfying the
substitute for primary resource requirements to a growing energy needs of industrialised countries.
limited degree. An alternative approach would be
to substitute minerals with renewable construction Every year, almost 4 tonnes of fossil fuels are
materials (e.g. wood, bio-fibre). consumed per capita in the EU-15. Domestic

The sustainable use of construction minerals

requires a reduction of environmental impacts
throughout their life-cycle. Emissions and waste
arising from the energy-intensive manufacturing Figure 3.20 Domestic extraction and imports
of fossil fuels, and CO2 emissions,
processes (e.g. production of cement, glass
EU-25
and ceramics) may be reduced by the use of
cleaner and more efficient process technologies. Index (1992 = 100)

120

Figure 3.19 Domestic consumption of fossil

115
fuels, EU-15, 1970–2001
Tonnes per capita 110

5.00
105
4.50
100
4.00

3.50 95
3.00
90
2.50

2.00 85

1.50 80
1.00
92

0
4

9
6

8
95
93

97

0
9

9
19

20
19

19

19

19

19

19

19

0.50

0.00 Domestic extraction of fossil energy

carriers (1 000 tonnes)
1970 1975 1980 1985 1990 1995 2000
Imports of fossil energy carriers
Coal Natural gas (1 000 tonnes)
Crude oil Other fossils CO2 emissions (1 000 tonnes)
Source: Eurostat/IFF, 2004. Source: Eurostat, Wuppertal Institute, 2005.

40 Sustainable use and management of natural resources

 Natural resources and their use

consumption of fossil fuels has been decreasing within the next 10–20 years (e.g. Campbell, 2003;
steadily since the 1980s, mainly as a result IEA, 2004; Federal Ministry of Economics and
of reduced consumption of coal. Crude oil Labour, 2002). Moreover, proven reserves of oil
consumption has remained fairly constant, and are unevenly distributed in the world. The Persian
the use of natural gas has increased (Figure 3.19). Gulf holds about 60 % of documented world
However, this is consumption based on the weight reserves. Political and economic stability in the
of the energy carriers consumed, and energy use in oil-producer regions affects security of supply,
energy units, e.g. Joules, has not declined. Indeed, and this is especially relevant for the EU which
total energy consumption in the EU has been rising is importing oil on a larger and larger scale. It is
since the mid-1990s, and this trend is projected to expected that dependency on imported energies
continue. Burning fossil fuels, the main source of will increase substantially in the coming decades
greenhouse gas emissions, is expected to remain (CEC, 2000a). Record-high oil prices last year, and
the largest energy source in Europe for the next 30 their damping impact on economic growth, give a
years (EEA, 2004). foretaste of the possible consequences of shortages
of oil.
Roughly half of the fossil energy carrier input to
the EU economy is imported. The share of imports Oil, as a strategic resource essential for any
increased steadily throughout the 1990s, and for industrialised economy, is a good example of a
the EU-15, the increase between 1992 and 2000 resource whose sustainable use has to be analysed
was more than 10 %, while domestic extraction in a global context. The future security of supply
decreased by a similar amount (see Figure 3.20). will be determined not only by the available
This dependency on imported fossil energy carriers reserves, but also by consumption in all world
is expected to continue to rise, due to the depletion regions. Increasing per-capita demand in less-
of domestic resources (e.g. the North Sea oil fields). developed countries, which until now consumed
far less energy than the industrialised countries,
The combustion of fossil energy carriers leads to will have a strong impact. Some policy-makers
a number of environmental pressures, the most indicate that in the wider context of sustainable
important being emissions of greenhouse gases, development, a strategy on sustainable use also
air pollutants such as SO2, NOX and non-methane needs to consider scarcity issues and security of
volatile compounds (NMVOCs), and particles. supply in order to take informed decisions, develop
Other pressures related to fossil fuels are pollution strategies and focus research activities.
by oil from coastal refineries, off-shore installations
and tanker spills, landscape destruction and 3.3.4 Land use
groundwater table reductions from coal mining,
and spills (oil) and leakages (gas) from pipelines. The term 'land' is quite broad and includes several
elements: the soil, land (the earth's crust) and the
The consumption of fossil fuels is increasing, concept of 'landscape'. Land performs a variety
mainly because of growth in the transport sector, of environmental, economic, social and cultural
but also in the household and service sectors. functions. About 47 % of European land is used
At the same time, environmental pressures are for agriculture, 36 % for forestry, 17 % for other
decoupling from energy carrier use, except for uses, including settlements and infrastructure (see
carbon dioxide. In the EU-15, fossil fuel-related Figure 3.21).
emissions of air pollutants (SO2, NOX, NMVOC,
particles) were significantly reduced during the Land is a resource that cannot be 'consumed' like
1980s and 1990s, mainly through the use of end-of- other natural resources. While the use of other
pipe-technologies. Total energy-related greenhouse resources (e.g. timber, fuels or minerals) means
gas emissions decreased slightly over the past that they are removed and processed into other
decade, but CO2 emissions increased slightly. physical states, land as such tends to remain in
place (only in extreme cases of erosion, large-scale
Fossil fuels are non-renewable and global reserves excavations, and natural disasters may land be
are finite. The question is therefore not whether, totally removed). The physical manifestation of the
but when the reserves will be exhausted. In the use of land ranges from altering the properties of
case of crude oil in particular, scarcity is an issue. the soil, changing the land cover (e.g. land can be
Although the search for and documentation of built on and natural habitats structurally altered)
new oil reserves is difficult and controversial, to transforming the landscape (e.g. construction of
some estimates show that the mid-depletion point dams, or development of large urban or industrial
of worldwide crude oil reserves could be reached centres).

Sustainable use and management of natural resources 41

 Natural resources and their use

Figure 3.21 Land use in the EU-15

renewable with potentially rapid degradation rates
and extremely slow formation and regeneration
processes'.

36 % The multiple functions of land are threatened by

various pressures related to human activities. The
physical, chemical and biotic changes in soils and
47 % the ecosystems near the surface can result in land
degradation, loss of its natural properties, and thus a
decreasing functionality. Soil degradation is already
a recognised policy issue in Europe, where the three
most important threats to soils are:

17 % • sealing
Forest and woodland • erosion
Agricultural area
• contamination.
All other land
Sealing refers to a partial or complete isolation of
Source: FAO, 2004. the soil from the atmosphere by an impermeable
cover (e.g. asphalt pavements) or buildings.
Sealing usually leads to a partial removal of abiotic
Soil is the upper layer of what is usually referred functions and an almost complete destruction of the
to as 'land'. The fertility of the soil can decline very biotic functions of the original ecosystems. Sealing
rapidly as a result of contamination, erosion, or increases water run-off by decreasing percolation
sealing, and the time for natural recovery may be and evaporation. In cities, water run-off is usually
centuries. As a rule of thumb for central Europe, canalised in the public sewer systems. All this
the rate of soil generation is about 5 cm in 500 years reduces the storage, buffering and transformation
(Graßl, 1998). As a result, policies for protecting functions of the soil, and has a strong impact
land often choose soil protection as a starting point. on groundwater recharge and the quality and
The European Commission's Communication on availability of surface water. The change in evapo-
the thematic strategy for soil protection (COM transpiration is also a main contributor to the change
(2002) 179) considers soil as 'essentially non- of microclimatic conditions in cities.

Figure 3.22 Built-up land in relation to Figure 3.23 Area affected by erosion
population
Estonia*
Tajikistan
Built-up area and population Austria
Index (1990 = 100) Kyrgyzstan
112 Belarus
Kazakhstan
110 Lithuania*
Russia
108
Latvia*
106 Spain
Cyprus
104 Albania
Georgia
102 Czech Republic*
100 Poland
Ukraine
98 Hungary*
Armenia
96 Moldova
Time Italy*
94
(years) Slovak Republic
1990 1995 2000*
Bulgaria
Greece
Built-up area Azerbaijan
%
Total population 0 10 20 30 40 50 60 70
* Data for 2000 or latest available year Agricultural area affected
Non-agricultural area affected
* Data for agricultural area not available

Source: EEA, 2004. Source: EEA, 2003.

42 Sustainable use and management of natural resources

 Natural resources and their use

Box 3.9 Soil sealing and football fields

In 2000, the rate of increase in areas for settlements and infrastructure in Germany was a staggering
130 ha per day. This fell to 93 ha per day in 2003 due to economic conditions. Settlements account for
about 80 % of this growth and transport infrastructure for the remaining 20 %. About half of this area,
equivalent to eighty football fields per day, is effectively sealed. In the 2002 Sustainability Strategy,
the German government set the target of reducing the increase of areas for new settlements and infra-
structure to a maximum of 30 ha a day by 2020.

Source: Federal Government of Germany, 2003.

Sealing is prevalent in and around all major (Figure 3.23), due mainly to intense seasonal
European cities and industrial centres (Box 3.9). rainfall, overgrazing and the use of inappropriate
Although the projected increase in urbanisation is crops. The typical barren lime hills of the
fairly small in relative terms, the absolute amount of Mediterranean landscapes are in most cases not a
additional built-up area is substantial (EEA, 2000). natural phenomenon, but a sign of human-induced
Traditionally, the urban concentration of population degradation which was already reported 3 000
took place in areas with the most fertile soils (e.g. years ago. The combination of climatic factors, steep
valleys, estuaries), at the expense of productive slopes, thin vegetation cover and poor agricultural
agricultural land. Today, in addition to urbanisation, practice has led to constant soil thinning and
tourism and transport are major driving forces of decreasing soil productivity. In central and eastern
soil sealing. Transport infrastructure, as well as Europe, large state-owned farms have created huge
leading to negative effects of sealing, is also the areas of cropland which are often insufficiently
main contributor to increasing fragmentation of the protected against wind and water erosion.
landscape.
Soil contamination is the human-induced deposition
Between 1975 and 1990 the relative increase in of harmful substances which are not a product
urbanisation was highest on the Atlantic coast of of natural accumulation or soil formation. Many
France and around the Mediterranean Sea (southern human activities, ranging from mining activities,
Spain, the Mediterranean islands, southern France industrial and agricultural production to road
and Italy) (EEA/UNEP, 2000). The projected relative transport, result in pollution that can accumulate in
increase of settlements is highest in areas with low the soil or result in biological and chemical reactions
population density (Portugal, Sweden, Finland in the soil. Soil contamination can be localised (e.g.
and Ireland). Moreover, the increase in built-up related to industrial sites) or diffuse (the result of
areas has far outstripped the growth in population deposition of a pollutant over a wide area). The most
(Figure 3.22). In Europe, built-up area expanded by common sources of local soil contamination are:
20 % during the past two decades, much faster than
the population increase of 6 % (CEC, 2003). • mines (e.g. disposal of tailings, acid mine
drainage, catalytic reagents)
Soil erosion is the removal of soil by wind and • industrial facilities (e.g. chemicals, heavy metals)
water. This natural process is intensified by human • military sites (e.g. fuels, military chemicals)
activities, such as deforestation for agricultural • waste landfills (e.g. leachate).
purposes, changes in hydrological conditions,
overgrazing and other inappropriate agricultural There is uncertainty about the risks posed by
activities (see Box 3.10). Erosion can lead to soil locally-contaminated sites (Figure 3.24). According
degradation and eventually complete destruction. to early investigations, the number of contaminated
With a growing world population, increased sites in the EU-15 may range from 300 000 to
pressures lead to a loss of an estimated 10 million ha 1.5 million (EEA, 1999a). The accession of the
of fertile land per year. In Europe, around 26 million new Member States has further increased the
ha are subject to water erosion and about 1 million uncertainty. Contamination from point sources may
to wind erosion (CEC, 2002). lead to high risks to human health and ecological
functions. Toxic and often persistent substances can
The most severe water-related erosion occurs in enter water bodies, accumulate in the food chain or
southern Europe and central and eastern Europe may be directly ingested by animals and people.

Sustainable use and management of natural resources 43

 Natural resources and their use

Figure 3.24 Probable problem areas of local contamination in Europe

Area with high probability

(location of areas of heavy industry)

Data availability
Few data
No data

Evidence of contamination
(industry/contamination type)

Coal mines
Shale mining
Metal mines
Phosphate mines
Oil and gas extraction
Metal smelters
Chemical industry
Mixed industry
Power generation
Waste disposal
Waste (also radioactive)
Radioactive contamination
Heavy metals

Source: EEA/UNEP, 2000.

Box 3.10 Land use for agriculture

Agriculture uses soils and water as a resource for food production, and at the same time impacts these
resources. The impact of agriculture is demonstrated by the fact that more land has been converted to
cropland since 1945 than in the eighteenth and nineteenth centuries combined. The extent and causes
of the environmental impacts of agriculture, notably by farm and crop type, vary significantly across
Europe. Nevertheless, the continuing search for efficiency, lower costs and increased scale of production
is resulting in substantial pressures on the environment, landscapes and biodiversity, particularly in the
most intensively farmed areas. At the same time, agriculture remains essential to the maintenance of many
cultural landscapes.

Agricultural production throughout the continent continues to rely on non-farm resources such as inorganic
fertilisers and pesticides. However, there has been a decline in the use of these resources and, particularly
in eastern Europe, a reduction in the pressure on the environment. Recent shifts to environmentally-friendly
production systems are apparent, for example to organic production or conservation tillage systems.
Organic farming covered about 4 % of the total agricultural area of the EU-15 in 2003. The development of
certified organic farming in other European regions still lags significantly behind this figure.

In terms of resource conservation, the most important impacts of arable and livestock production are
those relating to soil erosion and nutrient leaching, respectively. Soil erosion is particularly severe in the
Mediterranean region and parts of eastern Europe, and increases with the share of arable land of total land
use, mitigated by physical background factors (slope, soil type, rainfall patterns) and farming practices.
Nutrient leaching is caused where the application of livestock manure and mineral fertilisers exceeds
the nutrient demand of crops. The highest nutrient surpluses are found in areas of intensive livestock
production, particularly in north-western Europe.

While agriculture can exert significant pressure on the environment, it is itself subject to negative
environmental impacts linked to air pollution and urban development. Soil sealing by transport or housing
infrastructure eliminates many thousand hectares of agricultural land every year, particularly in western
Europe.

44 Sustainable use and management of natural resources

 Natural resources and their use

Figure 3.25 Soil contamination by heavy metals

-30° -20° -10° 0° 10° 20° 30° 40° 50° 60°

Pb enrichment and
concentration in
agricultural soils
and pasture lands

60°
Pb enrichment factor
0.14–1
60°
1–2

2–3

3–5

>5

Pb concentration
in topsoil
50° mg/kg

50°
< 10

10–16

16–26

26–38

38–50

50–64

40°
> 64

40°
Outside data
coverage

0° 10° 20° 30°

Note: Only randomly selected enrichment value dots shown for Austria, Bulgaria and Slovakia.

Source: Baltic Soil Survey (BSS), the Foregs Geochemical Baseline Mapping Programme and Eionet, 2003.

The energy sector is the main source of diffuse wastewater treatment works handling effluent from
contamination of European soil. The use of fossil industrial facilities.
fuels results in massive emissions of SO2 and NOX,
which was the main driving force behind the Currently, less than 5 % of the EU farmland is
widespread acidification of soil and water bodies in treated with sewage sludge, and most sludge
central and northern European countries. Although contains only tiny amounts of heavy metals.
there has been considerable progress in combating While the nutrients in this sludge can improve soil
SO2 emissions, further emissions of NOX continue to fertility in the short term, the heavy metals may
cause acidification and eutrophication. accumulate, potentially damaging long-term fertility
(Figure 3.25). The impacts will generally depend
One specific example of soil contamination occurs on the extent of heavy metal contamination of the
through the application of sewage sludge from sludge.

Sustainable use and management of natural resources 45

 Policy responses

4 Policy responses

The sustainable use and management of natural is an emerging consensus that the most effective
resources is a relatively new issue on the policy approach will vary depending on the particular
agenda, which is clearly reflected in current policy resource and impacts being addressed.
responses. This chapter presents some of the main
strategies and policies that have a major influence on A variety of policy instruments are used to
the use of resources, and illustrates some challenges manage the use of resources. Some countries have
to policy integration. The role of resource economics introduced raw material taxes on the extraction of
and implications for competitiveness are also minerals (sand, gravel, limestone, etc). Taxes on raw
reviewed. materials should provide an incentive to optimise
the use of such resources. Other policy instruments
Managing resources in a sustainable way has three used to influence extraction include licences for the
different points of intervention: resource extraction extraction of certain raw materials and limits to the
or imports, production and consumption, and quantities extracted.
management of wastes and emissions, as illustrated
in Figure 4.1 (Bringezu, 2002). Existing policy The integrated product policy (IPP) is an example
responses, such as the regulatory framework, of an instrument targeting the production and
economic instruments and various strategies, consumption phase. The IPP aims to stimulate
already target these intervention points, although product designs with efficient use of raw
a debate continues about which of the three points materials in production, and perhaps increased
offers the best potential for improvement. There recycleability of products. The directive on the

Figure 4.1 Intervention points for sustainable resource management

Emissions

Consumption

Raw Products Domestic waste

materials
1 extraction Production 2 Waste 3
Imports management
Industrial waste
Natural resources Raw materials
Recovery, recycling

Mining waste, Waste

extraction waste depositions

1 Taxes for raw materials, 2 Integrated product policy, 3 Changes for waste and emissions,
licence, self-commitment recycling quotas technical standards

Source: Bringezu, 2002.

46 Sustainable use and management of natural resources

 Policy responses

energy performance of buildings focuses on However, the use of the terms 'resources' and
energy efficiency. Another example is the economic 'decoupling' is not consistent, and varies from one
instruments used to manage demand for resources, country to another. Most countries formulate their
with water pricing being a prime example. objectives in terms of resource efficiency, but only
a few relate their objectives to various formulations
Examples of policy responses aimed at the waste of the 'carrying capacity' concept (NERI et al., 2004).
phase are emission standards for waste treatment Table 4.2 presents a selection of national objectives
facilities, for example the landfill and incineration dealing with the concepts of decoupling and Factor 4
directives. Other instruments are bans on the in EU Member States.
landfilling of certain wastes, and taxes on landfilling,
both of which provide an incentive to recycle more The examples illustrate the disparity between the
waste. strategies, in terms of objectives, time-horizon and
the level of specification. Targets are related to a
A policy that targets the sustainable use and baseline year, different in each case.
management of natural resources should connect
all three intervention points. Imports and exports
of resources and goods are also important in this 4.2 The challenges of policy integration
respect. In a globalised economy, resource inputs and
waste outputs have global effects, which can result in Many non-environmental policies have an
shifting the burden from one region to another. immediate or medium-term effect on resource use
and its environmental implications. Some examples
include (CEC, 2003b):
4.1 Examples of individual policies
• economic policy, where the drive for economic
The EU Strategy for sustainable development growth results in the use of resources;
and the 6EAP aim to provide strategic guidance • fiscal policy, where the traditional approach of
and ensure policy coherence, affecting all policy- taxing human resources rather than resource
making in the EU. On a more detailed level, various use has favoured increasing labour productivity
policy initiatives influence resource consumption. over resource productivity;
In general, one may distinguish between policies • agricultural policy, where the objectives of the
for tackling specific environmental problems common agricultural policy (CAP) are extending
(environmental policies), and policies which are beyond agricultural productivity to integrate
not targeted specifically at environmental issues environmental concerns for the sustainable use
(non-environmental policies). The latter can often of water and soil;
influence resource use more than the former (e.g. • fisheries policy, where the common fisheries
common agricultural policy or transport policy). policy (CFP) aims to provide coherent
measures for the conservation, management
Table 4.1 presents an overview of a selection of and exploitation of living aquatic resources,
environmentally-driven policy responses. The list including limiting the environmental impact
is not exhaustive; rather, it is intended to present of fishing in ways consistent with other
the broad array of policy instruments that affect Community policies;
resource use. In particular, it omits the large variety • energy policy, where one aim is to ensure safe
of non-environmental policy responses. energy supply;
• transport policy, where the use of land for
National strategies for sustainable development transport infrastructure can, for example, lead to
have been developed in most European countries. habitat fragmentation.

Sustainable use and management of natural resources 47

 Policy responses

Table 4.1 Policy responses, sustainable use of natural resources

Title Year of adoption Overall purpose Tools and measures

EU Strategy 2001 With respect to sustainable use Integrated Product Policy to reduce resource
for sustainable of resources, to 'break the links use and the environmental impacts of waste;
development between economic growth, the use instituting a system of resource productivity
of resources and the generation of measurement; review of subsidies in CAP and
waste' CFP
Sixth environment Adopted 2002: Sustainable use of natural Resource efficiency
action programme covers 2001–2010 resources and management of Dematerialisation of the economy
waste. Consumption of renewable
and non-renewable resources Waste prevention
should not exceed the carrying Delivery through thematic strategies (see
capacity of the environment. below)
Decoupling of resource use from
economic growth
Thematic strategy Expected autumn Decoupling of environmental (expected)
on the sustainable 2005 impacts of resource use from Gathering knowledge and access to
use of resources economic growth knowledge; developing indicators for resource
use; international panel on decoupling;
national action plans; sectoral action plans
Thematic strategy Expected autumn Promotion of waste prevention (expected/considered)
on the prevention 2005 Promotion of waste recycling REACH (chemicals); waste management
and recycling of plans; best available technology; market-
waste Closing the waste recycling
standards gap based instruments; producer responsibility;
prescriptive instruments (bans, orders)
Cardiff process 1998 Integration of environmental Energy: energy efficiency and increased use
(Art. 6 of the EC concerns into all Community of renewable energy
Treaty) policies Agriculture: sustainable cultivation practices
Industry (non-energy extractive): BAT
document; increased use of voluntary
initiatives
Integrated 1996 Harmonisation of rules for Technical requirements; permits; BAT
pollution permitting (highly polluting) documents; public access to information
prevention and industrial installations, i.e. to avoid
control directive environmental dumping
(IPPC)
Integrated 2003 Reduction of the negative (expected)
product policy (Communication) environmental impacts of products Life-cycle assessments; enhanced
(IPP) throughout their life-cycle coordination and coherence between existing
and future environment-related product
policy instruments; focus on products with
the greatest potential for environmental
improvement
Environmental 2004 Promotion of the development and Research; establishment of technology
technology (Communication) introduction into service of new platforms; networking and knowledge-
platforms (within sustainable technologies sharing; funding/financing; awareness-raising
ETAP)
Waste framework 1975 Protection of human health and Waste hierarchy; network of disposal
directive (*) the environment against harmful installations; waste management planning;
effects caused by waste permitting, registration, inspection
Mining waste Proposal of 2003, Improvement of safety in mining Minimum requirements; operating permits;
directive not yet adopted waste management waste characterisation; closure plans;
Prevention of soil and water financial security
pollution
Stability of waste management
facilities
Water framework 2000 Protection of inland surface waters, Mapping, analysis and registration of waters;
directive transitional waters (estuaries), river basin management plans; monitoring
coastal waters and groundwater programmes; recovery of costs for water
services; programme of measures
Common Fisheries 2001 (Green Fishing the right amount, the right Regulations on the amount of fish taken
Policy (CFP) paper) size and the right way from the sea; structural adaptations of the
2002 (Strategy Sustainable fisheries fishing and aquaculture industries; common
— aquaculture) organisation of the market; fisheries
agreements
2002
(Communication)
Forestry strategy Adopted 1998 Sustainable forest management Combating illegal and unauthorised logging;
Covers 1998–2003 certification of sustainable management;
monitoring, EU action plan for sustainable
Revision in 2005 forest management
(*) In addition to the waste framework directive, a number of directives address specific waste streams or specific treatment op-
tions. Some of these directives may be regarded as having a (direct/indirect) influence on the sustainable use and manage-
ment of natural resources: directive on the restriction of the use of certain hazardous substances in electrical and electronic
equipment; packaging waste directive; battery directive; end-of-life vehicle directive; landfill directive.

48 Sustainable use and management of natural resources

 Policy responses

Many incentives built into those non-environmental pressures, including reduced land use for houses
policies have an impact on the life-cycle of individual and roads, decreasing energy use for heating and
resources. Construction minerals, land use and energy transport, and less consumption of building materials.
may serve as illustrative examples.
Land is another resource for which policy incentives
The environmental effects associated with the life- are scattered over a number of non-environmental
cycle of construction minerals include the loss and policies, including the Trans-European Networks,
fragmentation of natural areas and the subsequent the common agricultural policy (CAP), the Natura
loss of biodiversity, the emission of CO2 due to the 2000 network the Structural Funds (regional policy).
maintenance of buildings (heating), and the large However, there is no co-ordinated land use or spatial
amount of construction and demolition waste. The planning in the EU. Instead, Europe has a multitude
main drivers of the use of construction minerals are of different spatial planning regimes at the national
the demand for houses and infrastructure, and the and regional levels. In Germany, for example, there
prevailing material-intensive type of engineering. are 16 different spatial planning regimes in the
Both are influenced mainly by non-environmental individual Länder.
policies: economic (e.g. investment programmes),
fiscal (e.g. tax reduction schemes for homeowners), Concerning the CAP and CFP measures, some
social (e.g. rent subsidies), educational (e.g. curricula experts argue that they have often contributed to
for engineers and architects), and transport policies overexploiting renewable resources and loss of
(e.g. infrastructure planning). A study by the German biodiversity, rather than to safeguarding these. Finally,
Federal Environmental Agency (Buchert et al., 2003) the use and management of fossil-energy carriers are
showed that policy intervention to limit urban also affected by non-environmental policies, such
sprawl increase the density of urban housing, and a as subsidies to coal mining. The role of subsidies
preference for reconstruction of existing buildings has recently been gaining increasing attention in the
rather than building new houses on virgin land, had context of stimulating certain patterns of resource use
strong positive results for a variety of environmental (Box 4.1).

Table 4.2 National objectives concerning decoupling in Europe

Country Target Document Date

Austria Increasing resource productivity Austrian strategy for sustainable Endorsed by Austrian
by Factor 4 development Council of Ministers
on 30 April 2002
Belgium Decoupling natural resource use Federal plan for sustainable September 2004
from economic growth development 2004–2008
Denmark Limit resource consumption to Denmark's national strategy for August 2002
25 % of current consumption sustainable development: A shared
future — balanced development, the
Danish government
Germany Double energy and raw material German strategy for sustainable Passed by the Federal
productivity by 2020. development cabinet on 17 April
2002
In the long term, achieve Factor
4 improvement
Ireland Progressive decoupling Ireland's strategy for sustainable 2002
of economic activity from development: Department of the
environmental degradation environment and local government
Italy Reduce TMR by 25 % by 2010, Environmental strategy action plan for Approved by the
75 % by 2030, and 90 % by sustainable Inter-ministerial
2050 development, Ministry of Committee for
the environment and land protection Economic Planning on
2 August 2002
Netherlands Dematerialisation by a factor 2 Fourth national environmental policy October 2001
to 4 in year 2030 plan
Poland Reduce material intensity by National environmental policy for December 2002
40 % between 1990 and 2010 2003–2006
Portugal Reduce resource consumption National strategy for sustainable July 2004
by a factor of 1.5 in industrial development 2005–2015
companies

Sustainable use and management of natural resources 49

 Policy responses

The integration of environmental concerns into demand and harmonise energy taxation in a Green
non-environmental policies is already a guiding Paper (CEC 2000a). A number of measures have
principle of Community policy. The Cardiff process been put in place, some successful, other less so. On
aims to better reflect environmental concerns in the supply side, more efforts are needed to utilise
prominent policy sectors such as agriculture, energy, the potential of renewable energy sources. Other
transport and industry. The resource strategy will proposals include directives on electricity from
further emphasise the importance of the integration renewable sources and biofuels, an EU action plan
of environmental concerns into other policies that on energy efficiency, and other measures.
affect the environmental impacts of natural resource
use. Although the reduction of atmospheric pollution
from energy use is one of the major success stories
In addition, in 2001, the EU adopted the directive of European environmental policy, it is due mainly
on the assessment on certain plans and programmes to fuel substitution and the use of end-of-pipe
on the environment ('Strategic Environmental technologies to abate selected pollutants, primarily
Assessment') to ensure that the environmental particulates and SO2. However, in the case of
consequences of certain plans and programmes are greenhouse gases, further efforts are necessary
identified and assessed during their preparation and to decrease resource use in absolute terms (i.e.
before their adoption. consumption of fossil energy carriers) to reduce the
environmental impacts.
Below, three examples of challenges for policy
integration are presented: energy, fisheries and In the case of transport, it seems difficult to decouple
land. The objective is to illustrate the considerable CO2 emissions from transport, which are expected
variation in the complexity of policy integration to rise (EEA, 2001) if no further action is taken. First
in these different areas rather than to review experiences in Germany (Kloas et al., 2004) indicate
the complete range of policies that affect these that higher transport costs through eco-taxation can
resources. help to diminish transport growth.

Energy The EU is switching from coal to the relatively

cleaner natural gas, but after 2010 no further
The global and environmental dimensions of switching is expected. Furthermore, some nuclear
resource use are both already reflected in the EU installations will retire. If this is not compensated by
energy policy objectives. energy saving measures and a switch to renewable
energy sources, their share will be simply replaced
The EU is strongly dependent on the supply of by fossil fuel plants, and increases in carbon dioxide
fossil energy carriers from abroad: about half of the emissions. Projections of future energy demand
energy requirements are currently imported. If no imply that the growth rate of primary energy from
action is taken, external energy dependency and the renewable sources needs to more than double to
related vulnerability is expected rise to more than attain the EU indicative target of 12 % by 2010 (EEA,
70 %. The Commission proposes to decrease energy 2002). A major barrier to the introduction of clean

Box 4.1 'Perverse' subsidies

Many non-environmental subsidies have a significant influence on the use and consumption of resources.
The scale of subsidies can be staggering: for example, government subsidies paid to the agricultural sectors
of OECD countries between 2001 and 2003 averaged more than USD 324 billion annually, or one third of
the global value of agricultural products in 2000. Annual subsidies to conventional energy, which encourage
greater use of fossil fuels and consequently emissions of greenhouse gases, are estimated to have been
USD 250–300 billion in the mid-1990s. Other sectors where subsidies are common include water, fisheries,
and forestry (Millennium Assessment Report 2005).

Some economists and policy analysts argue that subsidies in areas such as agriculture, regional
development, energy supply and transport have an inadvertent negative (hence 'perverse') effect on
resource consumption and the related environmental effects. Some participants in the policy debate argue
that, in the framework of a general review of subsidies, only subsidies that lead to negative environmental
impacts should be targeted, rather than those leading to an increased consumption of resources. Further
work is needed to analyse these 'perverse subsidies' in more detail.

50 Sustainable use and management of natural resources

 Policy responses

energy is the inertia of energy infrastructure, which • A new policy for the fleets:
has a very long life-span. - a fleet policy that places the responsibility for
matching fishing capacity to fishing possibilities
The common fisheries policy with the Member States;
- a phasing-out of public aid to private investors
Although the main objective of the current reform for modernising fishing vessels, while upholding
of the CFP is sustainable resource management, aid to improve security and working conditions
sustainable use and management of fish stocks have on board.
not yet been achieved. In coastal fisheries, only a • Harmonisation of national control systems and
few stocks are managed in a sustainable way and sanctions throughout the EU, and an extension
even fewer are managed in a way that gives their of the Commission inspectors' powers.
maximum sustainable yield — the guiding principle • Stakeholder involvement: Regional advisory
of the United Nations Law of the Sea Convention. councils (RACs) will be created, in which
As a result, European fish stocks and marine fishermen and scientists will be joined by other
ecosystems are overexploited, and the economic stakeholders.
value of the industry is far less than what it could be.
Land use
Since fishery is based on natural resources with
their own limits, continuous growth of output from In the current institutional setting of the EU, there
the industry is not possible. However, sustainable is little or no prospect of a coordinated transition
resource management and changes in the structure towards sustainable use and management of land.
of the fishing fleet could result in an industry Competences are scattered across local, regional,
which is competitive, less polluting, and offers vital national or European levels, and among different
employment for coastal communities. sectors. Examples of Community policies which
impact land use include the Trans-European
Managing fish stocks sustainably implies that as Networks, the common agricultural policy (CAP),
fish stocks fluctuate, the capacity of the fishing the Natura 2000-network and Structural Fund
fleet should be adapted to the changing size of fish interventions.
stocks. In lean periods, catches should be reduced in
order to avoid irreversible harm to fish populations. There is no coordinated land use or spatial
It appears that a major obstacle to a transition planning in the EU. Although the European Spatial
towards more sustainable management of fish Observatory Network (ESPON) was created to
stocks is often the micro-economic situation of the ensure a degree of coordinated monitoring of spatial
European fisheries. Large, capital-intensive fishing development, the planning and implementation
vessels tend to be less flexible as there is often a of land use policies are still largely dominated by
constant economic pressure to pay interest on bank sectoral policies. About 80 % of European land is
loans, and yet it is these large ships that have the used either for forests (36 %) or agriculture (44 %).
highest capacity for catching and processing fish. As This means that sectoral policies related to forestry
a result, waiting for stocks to grow is most expensive and agriculture are most important for a sustainable
for the large, efficient but capital-intensive fishing use and management of land.
fleets. Hence they continue to overfish even though,
for most stocks in European waters, there would be Agriculture is strongly influenced by direct
a long-term economic gain in letting stocks and fish Community interventions in the framework of
grow. the CAP. Agriculture can be an important factor
behind land degradation. For example, it can
Since 1 January 2003, the EU has had a reformed contribute to land contamination, soil compacting,
common fisheries policy, which partly takes the nutrient leaching and erosion. While agriculture has
above factors into consideration. The main changes historically contributed to increasing biodiversity,
are: the intensification of production has put substantial
pressure on habitats. Since the 1992 CAP reform,
• A long-term approach: until now measures the EU has gradually moved away from supporting
concerning fishing opportunities and related productivity increases towards direct payments for
measures have been taken annually. Under the farmers who provide different kinds of services (13)
new CFP, the objectives and measures will be set including sustainable rural development and the
with a long-term perspective. protection and improvement of agricultural land

(13) CEC, 1999.

Sustainable use and management of natural resources 51

 Policy responses

and biodiversity. By decoupling most of the direct from non-renewable resource exploitation would
payments from production, the pressure resulting then gradually be replaced by income from the
from intensive agriculture is expected to decrease. use of renewable resources (see also Daly and
Townsend, 1993), while their reduced stock would
Mobility and urbanisation are other powerful be compensated for by increases in the use of
drivers of changing land use patterns, but the renewable resources. The higher prices would
EU has no direct policy competence in urban give an incentive to substitute a non-renewable
development or infrastructure planning, where the resource with other alternatives, and to develop
onus is on national authorities. The Community new technologies, just as it makes recycling of waste
policy most relevant to the development of more worthwhile.
settlements and infrastructure is the regional policy,
but there is currently little prospect for changing Resource economics theories suggest that the
cohesion policies so as to dramatically decrease functioning of the market should be the most
further sealing and fragmentation of European important determinant of sustainable resource
landscapes. Better integration of land use issues in management. According to theory, resource use
the EU regional policy is a challenge which is still far would be sustainable if:
from being met with appropriate measures.
• correct prices are applied to resources;
• an economic rent is imposed on privately-
4.3 Resource economics and the role of operated extractions;
prices • the external costs of all stages of resource use are
internalised;
The 5th environment action programme (Council • sufficient competitiveness is ensured;
Regulation 93/C 138/01) coined the phrase 'getting • all 'perverse' subsidies are removed.
the prices right'. The economics-driven approach
emphasised the role of prices: Ideal theoretical conditions, however, hardly apply
to real markets. The 'Hotelling/El Serafy rule'
'Economic valuation can help economic agents to assumes fully competitive markets, where prices
take environmental impacts into account when respond swiftly to any scarcity of natural resources.
they take investment or consumption decisions. In reality, real market prices are often distorted by
Where market forces are relevant, prices should subsidies and taxes. Exploitation and extraction
reflect the full cost to society of production and of natural resources is one of the most heavily
consumption, including the environmental costs. subsidised sectors world-wide (Box 4.4), and under
… In order to get the prices right and to create those conditions, prices and price changes do not
market-based incentives for environmentally necessarily signal scarcity as the theory would
friendly behaviour, the use of economic and fiscal assume.
instruments will have to constitute an increasingly
important part of the overall approach. The Furthermore, analysing the economics of mineral
fundamental aim of these instruments will be to extraction, Reynolds (1999) pointed out that
internalise all external environmental costs during improved extraction technologies and processes
the whole life-cycle of products from source through lead to lower prices, despite increasing resource
production, distribution, use and disposal, so that scarcity. This might lead to market participants'
environmentally friendly products will not be at a expectation of continuing low prices for natural
competitive disadvantage in the market place vis-à-vis resources. Actors expect low prices because they
products which cause pollution and waste.' are used to them, and because prices are shaped by
different factors, not just physical scarcity of supply
(Box 4.2). However, after a long period of fairly
In the case of natural resource use, this general stable prices, price increases may rapidly become
economic approach reflects findings in resource very steep or even come as a shock resulting from
economics to some degree. Hotelling (1931) delayed adaptation of markets. Market actors would
and El Serafy (1989) formulated fundamental need interpretative devices to formulate appropriate
principles implying that the price of an exhaustible strategies.
resource should cover extraction costs (including a
reasonable return for employed capital as income) Technological change in resource-transforming
as well as a component that can be re-invested in industries is another explanatory factor in
renewable resources, in order to generate a steady resource markets, which are usually characterised
flow of income in the long term. The income by high capital intensity, and require long and

52 Sustainable use and management of natural resources

 Policy responses

expensive R&D for any change to take place. 2004b), but would need to be accompanied by other
Market coordination is often undertaken through incentives and a broader view of natural resources
contracts among firms, rather than by free as a whole.
competition (see e.g. iron and steel markets).
Generally, an incremental change is preferred,
making substitution of one material by another 4.4 Implications for competition
rather difficult. Moreover, due to already-made
investments in a technology, inertia exists in Critics of strong environmental protection and
the choice of resource use. Hence, firms may be the sustainable use of resources argue that the
'trapped' and find it difficult, if not impossible, to implementation of environmental policies is costly,
shift toward other resources (Arthur, 1989; and complicated, and harms competitiveness. If the
Walker, 2000). An example of this mechanism is the main response to policy requirements is to resort
choice of videocassette standards. The Beta system is to end-of-pipe measures, this will indeed increase
believed to have been a better system, but VHS were costs. However, a coherent policy response can also
more successful in their licensing practices, and the have positive economic effects. Improving resource
VHS is now the most widespread system (Margolis, efficiency is a win-win opportunity (14), which
2005). Thus, with the video cassettes at home of the can help to improve competitiveness and increase
VHS type, the consumer is likely to choose VHS employment at the same time.
again when buying a new video recorder.
This is not to suggest that there will not be some
Further down the resource chain, diffusion of difficult decisions to make, or that environmental
innovation processes and changing patterns of protection should be seen as an engine for jobs.
consumption require time to take effect. Quite However, there is evidence that environmental
often, radical change requires a transformation of policies, if properly formulated, need not have
infrastructures. Market diffusion of new motor fuels, overall negative impacts on employment.
for instance, depends on filling stations. Alternative Meanwhile, the integrated 'greening' of commonly-
vehicle technologies (such as fuel cells based on used products and services, such as fuel-efficient
hydrogen) need some twenty years of R&D before cars or household appliances, zero-emission
they can meet consumer demands. While these buildings, renewable energy technologies, or other
characteristics do not prevent markets from slowing innovations as yet unknown, should improve
extraction of known reserves, when scarcity of resource efficiency, decrease environmental impacts,
supply becomes serious, they may prevent markets and still provide the services required.
from switching to another technology (Bleischwitz,
2003). 4.4.1 The Lisbon Strategy

A possible approach would be to create incentives At the summit in Lisbon in March 2000, the
for innovation and change towards sustainable European Council declared the new strategic goal
resource management. This is well in line with the for 2010: the European Union should become 'the
Environmental technology action plan, ETAP (CEC, most competitive knowledge-based economy in the

Box 4.2 Resource pricing and water consumption

The right price signals, including taxes, tradable permits, or subsidy reform, can be a very effective tool for
improving resource efficiency and influencing consumption patterns. The basic premise is that the costs of
environmental impacts should be factored into the price of products and services, and that this will quickly
and strongly influence consumption. For example, the introduction of full-cost water pricing in a number of
EU countries has significantly reduced water use per capita, particularly in the household sector. However,
few countries have managed to implement full cost-recovery pricing for irrigation water because of political
obstacles. The use of incentive pricing in the management of resources is even less common, although it is
a fairly widespread tool for demand management in electricity supply.

(14) Some experts warn that in most cases, the easy win-win opportunities have already been realised, and the ones that have not are
those where there would be some losers (e.g. with subsidy reform, the environment and the economy overall may win, but at the
expense of employment in the agriculture or mining sectors).

Sustainable use and management of natural resources 53

 Policy responses

world with sustainable economic growth and more and jobs — a new start for the Lisbon Strategy' is to
and better employment opportunities and greater focus efforts around two principal tasks: delivering
social cohesion'. stronger, lasting growth and creating more and
better jobs.
The new vision presented at the Lisbon summit
was complemented by quantitative targets and Critics of the revised Lisbon agenda note that
timetables. The structural indicators chosen to the importance of the environment has declined,
monitor socio-economic progress have become a and argue that the sustainable use of resources
central instrument of political control in the EU. is of value in its own right. However, the revised
According to the Feira European Council in June proposal clearly recognises that:
2000, the European Commission is to table a so-
called 'Synthesis Report' for each Spring Council, '…lasting success for the Union depends on
based on the structural indicators and benchmarks addressing a range of resource and environmental
(Box 4.3). The Commission and the Council have challenges which if left unchecked will act as a
also established a central indicator-based monitoring brake on future growth. This goes to the heart of
and reporting tool for political decision-making and sustainable development. … Europe must rise to this
assessment (CEC, 2004a). challenge and take the lead in shifting towards more
sustainable patterns of production and consumption.
In February 2005, a mid-term review of the Lisbon … Moreover, by getting more output from given
Strategy was published (15), concluding that inputs, innovation leading to productivity growth
'… Europe is far from achieving the potential for can also make a significant contribution to ensuring
change that the Lisbon Strategy offers'. The key that economic growth is increasingly environmentally
approach of the renewed Lisbon Strategy, spelled sustainable. This is why eco-innovations need to be
out in the document 'Working together for growth strongly promoted, notably in transport and energy.'

Box 4.3 Spring reports and structural indicators

In November 2000, the Commission and the Council agreed on a preliminary list of 35 indicators, based
on a Council decision of March 2000 (CEC, 2000). The result presented to the 2002 Council in Nice is,
according to the Commission, a comprehensive summary of the most important performance indicators.

The structural indicators will be used to:

• monitor progress in achieving the identified targets and implementing policies;
• assess the effectiveness of the policies.

In March 2001, the Stockholm European Council expanded the scope of the structural indicator set
from purely socio-economic objectives to also cover sustainability. In particular, the heads of state and
governments were interested in the possible contribution that the environment technology sector could
make to promoting growth and employment.

Since the Stockholm meeting, the areas of interest for the synthesis reports are:

• employment
• innovation
• economic reform
• social cohesion
• environmental aspects of sustainable development.

On the whole, the Spring reporting highlights the different dimensions of European integration and can
thus help to increase policy coherence. A comprehensive overview is also necessary given the considerable
expansion of the EU into very heterogeneous regions. Also within this framework, the sustainable use and
management of natural resources could be monitored by the Lisbon Strategy, using indicators based on
material flows. This view is supported by a recent OECD Council recommendation on material flows and
resource productivity (OECD, 2004).

(15) http://europa.eu.int/growthandjobs/index_en.htm.

54 Sustainable use and management of natural resources

 Policy responses

Given the Lisbon Strategy's objectives of In 1999, the estimated value added by eco-industries,
improving competitiveness, ensuring growth, based on direct labour costs, was about EUR 100
and creating jobs, it is crucial to demonstrate billion, an increase from EUR 35 billion in 1994.
how sustainable management of resources can Investment in eco-industries in the EU-15 each year
contribute to the revised objectives of the Lisbon total some EUR 54 billion, with subsequent benefits
Strategy. for construction, capital goods industries and
associated services (Ecotec, 2002).
There are two obvious areas where the Lisbon
Strategy and the emerging resource strategy Growth rates in EU-15 eco-industries are high.
'intersect': employment in eco-industries and According to the US Department of Commerce
increased competitiveness through cost-saving. (Ecotec, 2002), the annual growth rate of eco-industries
in western industrialised countries in 1998/1999 was
4.4.2 Employment in eco-industries between 7 % and 9 %. Moreover, the growth of this
sector seems to continue even at times of economic
European eco-industry is already highly stagnation. In Germany, for example, the Federal
competitive on the global market, and it is one of Statistical Agency has confirmed an eco-industry
the few sectors where the original Lisbon objective growth of 3.7 % during 2001, while overall economic
of becoming globally competitive and ensuring growth was only 0.8 %. Exports by German eco-
high employment seem to have been achieved. industry in that year grew by an impressive 19.3 %.

Eco-industries are defined as (16) '…activities which The EU, along with the US and Japan, is among the
produce goods and services to measure, prevent, global market leaders for eco-products and services, a
limit, minimise or correct environmental damage fast-growing global market of about EUR 550 billion
to water, air and soil, as well as problems related per year (Ecotec, 2002). 85 % of the world market
to waste, noise and eco-systems. This includes for eco-products and services is dominated by the
cleaner technologies, products and services that USA, the EU and Japan, and the EU-15's share of eco-
reduce environmental risk and minimise pollution products and services accounts for about one third of
and resource use'. Broadly, eco-industries can be the still growing world market.
divided into three categories:
Overall, global demand for European environmental
• Pollution management: air-pollution control, products and services is increasing. Europe could
wastewater treatment, waste management, profit from the transfer of technology and know-
remediation and clean up of contaminated how, by exporting both traditional end-of-pipe
land and water, noise and vibration control, environmental technologies and eco-efficient products
environmental analysis and assessment, and services. The demand for resource-efficient
environmental research and development, products and services is likely to increase due to the
environmental administration (public sector), global growth of resource use, and will be strongest
and environmental management (private in the areas of fossil energy resources and renewable
sector); energy technologies. Due to the long-term scarcity
• Cleaner technologies and products: cleaner or of crude oil, resource-efficient products, such as
more resource-efficient technologies, processes fuel-efficient motor vehicles, and renewable energy
and products; technologies such as wind turbines, are also well
• Resource management: potable water treatment positioned to gain importance on global markets.
and distribution, recycled materials, renewable Weizsäcker et al. (1997) and Schmidt-Bleek (2004)
energy plants, and nature protection. have shown many examples of products and services
where resource savings of up to a Factor 10 are
Direct employment in EU-15 eco-industries already attainable.
exceeds 2 million, including around 1.5 million
jobs in pollution management and some 650 000 Finally, it is expected that the expansion of the EU
in resource management. The eco-industry's share eastwards, which extended the environmental acquis
of total employment in the EU-15 is about 1.3 %. A communautaire to ten new countries with a combined
high-end estimate of total employment generated population of 110 million, will stimulate growth in the
by the demand for environmental goods and now 'domestic' EU eco-industry sector. Subsequent
services is around 4 million jobs (Ecotec, 2002). expansion of the EU will further support this trend.

(16) According to the OECD/Eurostat (1999), The Environmental Goods and Services Industry — Manual for Data Collection and
Analysis, ECOTEC, 2002.

Sustainable use and management of natural resources 55

 Policy responses

4.4.3 Increased competitiveness through cost savings Figure 4.2 Labour productivity, material
productivity, and energy
productivity, EU-15, 1960–2002
Better management of materials and energy
conservation can offer significant potential for cost Index (1960 = 100)

savings. In many manufacturing sectors the cost of 400

materials and energy is much higher than labour
costs. Increasing the efficiency of resource use will 350

directly improve competitiveness.

300

In order to remain competitive, industry 250

continuously strives to increase its energy and
material efficiency. Methods of increasing material 200
efficiency include 'design for competitiveness' which
aims at reducing customers' costs by modifying 150
design specifications, and 'zero-loss management'
which is a budgeting approach aimed at reducing 100

material and energy losses. These have been

50
effectively applied in a variety of industries. The
two methods together are estimated to be able to –
increase material efficiency by 20 % (Fischer, 2003). 1960 1970 1980 1990 2000
In general, opportunities for cost savings are largest Labour productivity
for water and non-renewable resources for which Materials productivity
prices are already relatively high. Energy productivity
Note: Labour productivity: GDP per annual working hours
Although there is little systematic research in (1999 USD (converted at EKS PPPs) per hour);
material productivity: GDP per domestic material
this field, some statistical evidence shows that consumption (DMC) (EUR per kg); energy productivity:
improving resource and energy productivity can be GDP per total primary energy supply (TPES) (thousand
a better way of increasing overall macro-economic 1995 USD per toe).

competitiveness than focussing on labour costs. Sources: Groningen Growth and Development Centre and The
Conference Board, Total Economy Database, 2004;
For example, the cost structure of manufacturing EUROSTAT/IFF, 2004; IEA, 2001; Federal Statistical
industry in Germany (Table 4.3) shows that Office, 2003.
materials and energy make up some 35–50 % of total
costs for companies, with labour costs constituting
only about 20 %, and other costs (including As a result, improving material efficiency clearly
depreciation) make up another third. While the deserves more attention as a key to reducing costs
situation will vary from sector to sector and country and increasing competitiveness.
to country, data from Eurostat's NewCronos for the
EU-25 confirm that labour costs in manufacturing Despite the potential for improving material
constitute some 20 % (or even less) of total costs. and energy productivity, most macro-economic

Table 4.3 Cost structure in selected economic sectors, Germany

Economic sector Material costs Labour costs Other costs

Share of gross output (%)
Manufacturing industry 41.5 21.4 37.1
including:
- Food production 49.9 15.0 35.1
- Chemical industry 35.1 19.5 45.4
- Metal production and processing 52.3 19.9 29.8
- Car manufacturing 52.0 18.6 29.4
Construction 26.5 32.9 40.6

Note: Material costs include the cost of materials and energy. Labour costs include costs involving temporary employees. Other
costs include industrial services e.g. waste management, depreciation, data processing, consultancy and membership fees.
Data for 2000.

Source: German Federal Statistical Agency, 2003.

56 Sustainable use and management of natural resources

 Policy responses

Box 4.4 Sustainability and a new economic development model

The current model of development seems to be extremely inefficient in using the primary production
factors, labour and nature: 'The serious economic and social problems the Community currently faces
are the result of some fundamental inefficiencies: an 'under-use' of the quality and quantity of the labour
force, combined with an 'over-use' of natural and environmental resources. …The basic challenge of a
new economic development model is to reverse the present negative relationship between environmental
conditions and the quality of life…'

Source: CEC, 1993.

restructuring and fiscal reform programmes tend productivity, but also strongly on resource and
to focus on reducing labour costs. However, labour energy productivity, as suggested in the revised
productivity is already high, having improved by Lisbon Strategy.
more than 270 % over the past four decades as a
result of social security and tax schemes, which A recent study set out to model the effects of
have concentrated mainly on income taxes, making dematerialisation on economic growth and the
labour relatively more expensive than resources. In state budget in Germany. It concluded that if
the same period, the productivity of energy and raw material and energy savings were re-invested
materials increased by much less, 20 % and 100 % in research and development and engineering
respectively (Figure 4.2). strategies, 2.3 % GDP growth, an additional 750
thousand jobs, and decreased public spending on
While this may be partly explained by the high share social welfare could be achieved (Fischer et al.,
of services in developed economies, it is mainly 2004). This is a powerful conclusion in support of
the manufacturing sector which is under pressure the sustainable use of resources, and more work
to improve competitiveness, since manufactured should be undertaken to test and verify these
products (machinery, motor vehicles, chemicals, etc) findings in other countries.
are traded on global markets. Services, in contrast,
are traded mainly on domestic markets (public In summary, economic policies could be designed
administration, health services, public transport, to give more incentives to increasing the
etc.) and are therefore less exposed to global productivity of materials and energy, rather than
competition. focusing on increasing labour productivity, which
usually results in less employment. This conclusion
Figure 4.2 demonstrates that one way of achieving is not new; it had already been recognised in the
the competitiveness target of the Lisbon Strategy early 1990s in the 'Delors white paper on growth,
could be to focus not only on improving labour competitiveness and employment' (Box 4.4).

Sustainable use and management of natural resources 57

 Outstanding questions

5 Outstanding questions

While the need to develop a coherent and efficient impacts. Absolute decoupling can be achieved: one
policy for ensuring a more sustainable use of example is the phase-out of lead from gasoline,
resources is accepted by all those involved, with dramatically reduced lead emissions despite
stakeholders have not always agreed about priorities increases in transport. However, a much more
and the best way to address the problems. This common situation is that emissions of pollutants
chapter presents some of the issues which have (pressures) continue to grow.
proved both important and controversial during the
policy debate in recent years. It has been suggested that such a preventive
'dematerialisation approach' is a good addition to
the focus on impacts. The two approaches are not
Relative decoupling versus contradictory, and can complement each other.
dematerialisation

This is one area where there has been much Focus on environmental impacts or
discussion about the very basics of the policy scarcity of resources
approach. Should the policy focus on achieving
relative decoupling of economic growth from The European Commission has emphasised that
the environmental impacts of resource use, the policy focus of the resource strategy should
following the 'knowledge-based approach'? After be on decreasing environmental impacts rather
all, material use is not an evil per se, and some than on the scarcity issue (COM (2003) 572). The
stakeholders argue that there may be cases where Commission presented several reasons why the
total material use has gone up without an increase scarcity of non-renewable resources may not be of
in environmental impacts (e.g. the use of certified immediate concern: in recent years, the increase in
tropical timber, where overall consumption has gone the documented reserves of resources has outpaced
up, but the impacts have decreased). their consumption; reliably confirmed reserves are
only a fraction of total physical reserves which could
Other experts believe that society should strive for be made available; and there is a large potential
a general dematerialisation, and that a sustainable for improving resource efficiency and recycling
resource policy ought to promote an absolute of materials. Moreover, substitution of resources
reduction in the use of resources. The advocates could make scarcity less important, at least for
of this approach argue that it would be more certain materials. In theory even the scarcity of oil
in line with the precautionary principle and may not be a problem in the long term, if other
intergenerational equity. energy sources are developed that produce energy
at a competitive price and with less environmental
There is already some evidence that an absolute impact.
reduction in resource use is likely to be accompanied
by less impact. A recent study prepared for the Another argument is that the focus on
Commission concluded that the higher the resource environmental impacts rather than resource
use, the higher the associated impact potentials, and consumption will enable growing economies to
this has been observed at the aggregate level for expand. The use of resources would continue to
European countries over the past decade (van der grow, but would be more efficient from both an
Voet et al., 2004). economic and an environmental point of view
(for example through technology transfers and
There is no easy or 'correct' answer to this 'leap-frogging'). This probably can be achieved,
dilemma. There is indeed a distinction between even though it will require considerable efforts to
relative decoupling and absolute reduction of decouple impacts from resource use.

58 Sustainable use and management of natural resources

 Outstanding questions

However, some stakeholders do not fully agree with monitoring the decoupling of economic growth from
the idea of putting the issue of scarcity of resources to the environmental impacts of resource use, or even
one side, because of concerns for inter-generational for reliably measuring the environmental impacts of
equity or their preference for the precautionary resource use (Box 5.1).
principle. They also note that there are no 'one size
fits all' solutions — for some resources, such as fossil First, there is the question of how to estimate the
fuels, fisheries and land, scarcity may be a much environmental impacts of resource use. Most
bigger issue than for materials such as iron, water, resources are used to produce many kinds of
or timber. For instance, oil and gas, and indeed coal, products, with different life cycles and impacts
are vital raw materials for the chemical and other at different stages of their life. For example, how
industries and it may be far harder to substitute for can one compare the environmental impacts
this than for their energy use. of extraction of construction materials (e.g. air
pollution, waste generation) with those of the roads
which are constructed from them (e.g. air pollution,
Measuring environmental impacts soil sealing, noise, or landscape fragmentation)?
Work to develop tools for calculating impacts is
Focusing policy on the environmental impacts already going on under the auspices of the European
of resource use may well be the best and most Commission, OECD, and national programmes, but
pragmatic approach. However, some participants in there are still many open questions regarding the
the policy debate stress that there are many practical choice of methodology.
limitations that should be kept in mind when
choosing such an approach. Few reliable or well- Second, whatever results are produced, there will
tested methods and tools are currently available for always be uncertainties associated with them. Most

Box 5.1 Resource use and environmental impacts

Environmental impacts are typically grouped into several impact categories, including:

• acidification
• climate change and global warming
• ecotoxicity
• human toxicity
• eutrophication
• photochemical ozone formation (summer smog)
• stratospheric ozone depletion.

The relationship between resource use and environmental impacts is not well understood and documented.
A recent Commission study (CEC, 2004d) noted that consolidated advice on priorities for policy
development are limited by the 'persisting weaknesses in environmental impact assessment models'.

Except for the impacts directly related to resource extraction, there are only a few instances where a
causal relationship between a specific resource use and its environmental impacts can be demonstrated.
They include global warming and the acidifying effect of the consumption of fossil fuels, and health-related
impacts of metal refining.

Concerning indicators, no single aggregate measure or index is yet available for 'impacts of use of natural
resources.' CEC 2004d notes that 'the immediate possibilities the (currently available) studies offer to
establish direct links between indicators of resource use and indicators of environmental impacts are more
limited and additional research is required to explore such links.'

Sustainable use and management of natural resources 59

 Outstanding questions

environmental pressures have long-term impacts, and when a resource or a product is identified as having
current knowledge of how the release of substances high environmental impacts, it should become
affects the environment may not be sufficient to assess a target for policy intervention which will have
the impacts in fifty or a hundred years, and new consequences for the industries and manufacturers
impacts may be discovered. For example, the damage that use or produce it. The ongoing debate about
caused by CFCs to the ozone layer was completely the environmental advantages of recycling paper,
unknown barely thirty years ago. Some experts compared with incinerating it or producing paper
therefore argue that, in the absence of universally- from virgin material demonstrates how conflicting
agreed scientific conclusions, the precautionary interests can lead to a protracted discussion about
principle should be applied (see Box 5.2). the 'optimal' approach.

Third, the amount of time needed to examine and In this context it is sometimes pointed out that
measure, or estimate, the environmental impacts reducing resource use in absolute terms will
of resource use can be considerable. For example, automatically lead to fewer impacts, even if we
depending on the methodology used and the do not know precisely how much a change in
resources being studied, it may take a long time resource consumption will change the resulting
to analyse all the impacts and reach conclusions environmental impacts.
on which resources lead to the highest impacts.
Such 'paralysis by analysis' can hinder effective
policy intervention. It is important, and a major Priority areas
challenge, to achieve a broad level of acceptance
and consensus among authorities, industry and Despite the methodological problems presented
consumers regarding the methodology and the above, the information that already exists on the
conclusions. Some of these stakeholders have environmental impacts of resource use can provide
different interests, goals and incentives. For example, a starting point. Some experts (17) have suggested

Box 5.2 Late lessons from early warnings

An EEA study examined fourteen cases where enough was now known about their impacts to enable
conclusions to be drawn about how well they were dealt with by governments and civil society. The aim was
to see if anything could be learnt from these cases to help prevent, or at least minimise, future impacts of
other agents that may turn out to be harmful, without stifling innovation or compromising science. Twelve
lessons emerged:

1. Acknowledge and respond to ignorance, as well as uncertainty and risk, in technology appraisal and public
policymaking.
2. Provide adequate long-term environmental and health monitoring and research into early warnings.
3. Identify and work to reduce 'blind spots' and gaps in scientific knowledge.
4. Identify and reduce interdisciplinary obstacles to learning.
5. Ensure that real-world conditions are adequately accounted for in regulatory appraisals.
6. Systematically scrutinise the claimed justifications and benefits alongside the potential risks.
7. Evaluate a range of alternative options for meeting needs alongside the option under appraisal, and
promote more robust, diverse and adaptable technologies so as to minimise the costs of surprises and
maximise the benefits of innovation.
8. Use 'lay' and local knowledge, as well as relevant specialist expertise in the appraisal.
9. Take full account of the assumptions and values of different social groups.
10. Maintain the regulatory independence of interested parties while retaining an inclusive approach to
information and opinion gathering.
11. Identify and reduce institutional obstacles to learning and action.
12. Avoid 'paralysis by analysis' by acting to reduce potential harm when there are reasonable grounds for
concern.

Source: EEA, 2001.

(17) See e.g. CEC, 2004d; Moll et al., 2004; van der Voet et al., 2003; Tukker et al., 2004.
(van der Voet, E.; van Oers, L.; Nikolic, I., 2003: Weighting materials: not just a matter of weight. CML Report No. 160, Leiden:
Leiden University, Centre of Environmental Science).

60 Sustainable use and management of natural resources

 Outstanding questions

that the broad production and consumption areas Thus, some stakeholders argue that while
of housing, mobility and nutrition are the ones most recognising the need for a scientifically-proven input
relevant from an environmental perspective. Other into the policy-making process, a general indication
research, carried out as a pilot study for Germany of priorities for action is already available.
(Moll et al., 2004), identified eight 'final-demand'
product groups with large life-cycle-wide resource The European Commission recognises that much
use and environmental impact potentials: work in this field is under way in the research
community, although the information and results
1. Construction are widely spread. In order to obtain adequate
2. Food products and beverages information on environmental impacts, the
3. Motor vehicles, trailers and semi-trailers Commission has suggested that access to existing
4. Electricity, gas, steam, and hot water supply information should be improved by making it
5. Basic metals available from a single place, a 'one-stop shop'.
6. Agricultural products
7. Chemicals and chemical products
8. Machinery equipment. Setting targets and measuring progress

Concerning materials, preliminary research for the The sustainable use and management of natural
EU-25 and the remaining three accession countries resources is a relatively new policy field. In the
(Bulgaria, Romania and Turkey) as a whole policy cycle, the first steps involve identifying and
listed the ten material categories with the highest understanding the issues, problems or concerns that
environmental impacts (van der Voet et al., 2004a). are commanding the attention of the Community,
Both mass flows and impacts per unit weight were and then developing a policy response. The next
taken into account by combining information on steps involve analysing alternative options and
material flows and life cycle impact assessment. setting targets.

1. Animal products Formulation of a resource policy is at an early

2. Crops stage. Guiding principles such as decoupling, eco-
3. Plastics efficiency and resource productivity have already
4. Oil for heating and transport been introduced by the Johannesburg plan of
5. Concrete implementation, the EU sustainable development
6. Hard coal for electricity strategy, and the 6th EAP. However, those principles
7. Brown coal for electricity are fairly general in nature, and in addition to
8. Iron and steel declaring strategic preferences, it may be necessary
9. Gas for heating to formulate concrete objectives and set measurable
10. Paper and board. targets.

The next material categories on the priority list were: A discussion is under way about how to set
glass; oil for electricity; aluminium; ceramics; gas for appropriate targets and what they should be, and
electricity; clay; lead; nickel; hard coal for heating; how to measure progress. Some stakeholders argue
and zinc. that we need to establish measurable quantitative
goals (e.g. based on aggregated indicators for energy
The 2004 report on the environmental impact of use, raw material consumption, or land use). Others
resource use by the Joint Research Centre (CEC, feel that mature and methodologically-sound impact
2004d) identified eight 'core activities' as the cause of indicators are needed before any targets can be set.
the largest share of major environmental pressures
from human activities: Indicators are needed to 'translate' the general
guiding principles into quantitative targets. No
• Combustion processes consensus has yet been reached on what such
• Solvent use indicators should be, and different participants in
• Agriculture the policy process have different views. A set of
• Metal extraction and refining aggregate material flow indicators (see Section 3.1)
• Dissipative uses of heavy metals is available which could be used to monitor
• Housing and infrastructure overall resource use in the EU and Member States.
• Marine activities Aggregate indicators which measure the potential
• Chemical industry. impacts of resource use rather than the material
flows are under development, but not yet available

Sustainable use and management of natural resources 61

 Outstanding questions

(van der Voet et al., 2004). Ecological footprints and the demand through increased imports. At first
input/output-based NAMEAs (national account glance, it may appear as though consumption of
matrix including environmental accounts) are other resources in the EU has decreased, and indeed
examples of tools which have been proposed by many indicators do show such a 'relative'
the stakeholders. Some experts suggest that rather decoupling. However, the extraction of resources
than focusing on aggregated macro-level indicators, generates large amounts of waste and causes
what is needed is a framework of indicators for environmental impacts which 'remain' in the
specific sectors or resources (e.g. water abstraction), exporting countries. This means that, even if
or a 'basket' of decoupling indicators, such as the 18 national statistics on consumption of resources
indicators published by the UK in April 2005 (18). show declining figures, environmental burdens
may just have been shifted to developing
It seems clear that the development of indicators for countries, where labour may be cheaper and
resource use and measuring decoupling of economic environmental standards less strict.
growth from environmental impacts of resource use
should be high on the priority list in the framework Some stakeholders assert that this is a healthy
of a future resource policy. example of market forces in action. If it is cheaper
to import steel than to produce it domestically,
Shifting of environmental burdens abroad as a imported steel should replace national production.
result of global trade On the other hand, environmentalists warn that
'relative decoupling' should not be achieved by
On the global scale, resource use is set to increase. 'exporting' pressure abroad.
Some developing countries, such as China, will soon
reach per capita resource use levels similar to those Perhaps the most succinct summary of the open
in industrialised western countries. The associated environmental issues relevant to the Thematic
environmental impacts of this increased resource strategy on resources was presented in the recent
use will also increase globally (e.g. emissions of JRC-IPTS report on the environmental impact of the
greenhouse gases). use of natural resources (CEC, 2004d). The report
concludes that for effective policy development,
Countries possess different natural resources. scientific input to the resources strategy '…should
Some specialise in manufacturing highly-processed be provided in close relation to parallel research and
products, even if their resource base is poor. dialogue on:
Such differences are the basis of global trade in
commodities and the generation of income. However, • a precaution-based approach to a resources
they also mean that many resources are transported strategy building on existing knowledge;
to other parts of the world where they are consumed • an approach based on the scarcity of resources in
or used as an input for the production of goods. Europe and globally;
After consumption, wastes may be transported to • an approach building on equality among the
yet other parts of the world, where they are disposed different parts of the world;
of or managed. As a result of this global trade, the • the requirements of different methods of
environmental impacts of a particular product or linking the state of the environment to resource
resource may occur in several countries. consumption (through materials, product
groups, consumption areas, etc);
In most EU countries, the trend has been to reduce • the abatement strategies used in cases of
domestic extraction of raw materials and meet resources where policies are already in place.'

(18) http://www.defra.gov.uk/environment/statistics/scp/index.htm.

62 Sustainable use and management of natural resources

 Abbreviations and definitions

Abbreviations and definitions

Apparent consumption Statistical term, with 'apparent' indicating that a given figure is a result of
calculation including various factors and estimates. For instance, 'apparent
consumption of steel' is calculated as domestic production of steel plus imports,
minus exports. Estimates are used to convert processed goods containing steel
(e.g. ships, cars) into steel weight equivalent.

Decoupling (relative and Decoupling occurs if the growth rate of an environmental pressure is less than
absolute) that of a given economic driving force (e.g. GDP) over a certain period. Relative
decoupling occurs when an environmental pressure grows, but more slowly than
the underlying economic driver. Absolute decoupling is when an environmental
pressure decreases while the economy grows.

Dematerialisation Defined by UNEP as 'the reduction of total material and energy throughput of
any product and service, and thus the limitation of its environmental impact.
This includes reduction of raw materials at the production stage, of energy and
material inputs at the use stage, and of waste at the disposal stage.'

Direct material input (DMI) and Indicators that measure the input of materials (excluding water and air) which are
domestic material consumption directly used in the economy. DMI includes used domestic extraction and physical
(DMC) imports (mass weight of imported goods); DMC is DMI minus exports (mass
weight of exported goods).

Eco-efficient products and Products and services that prevent, limit, minimise or correct environmental
services damage to water, air and soil, as well as problems related to waste, noise and
eco-systems. This includes cleaner technologies, products and services that
reduce environmental risk and minimise pollution and resource use.

Eco-industry Defined by OECD/Eurostat (1999) as 'activities which produce goods and services
to measure, prevent, limit, minimise or correct environmental damage to water,
air and soil, as well as problems related to waste, noise and eco-systems. This
includes cleaner technologies, products and services that reduce environmental
risk and minimise pollution and resource use'.

Energy or material intensity Ratio of energy or material consumption to economic or physical output. At the
national level, energy intensity is the ratio of total domestic, primary energy
consumption or final energy consumption to gross domestic product or physical
output.

Environmental impacts Impacts on humans, ecosystems and economies resulting from changes in
environmental quality.

Environmental pressures The release of substances (emissions), physical and biological agents, the use of
resources and the use of land. The pressures exerted by society are transported
and transformed in a variety of natural processes to manifest themselves in
changes in environmental conditions.

Factor 4 Refers to a hypothetical fourfold increase in resource productivity, brought about

by simultaneously doubling wealth and halving resource consumption.

Gross domestic product (GDP) The total output of goods and services produced by an economy in a given period,
usually a year, valued at market prices.

Material (resource) use The use of raw materials by humans. Raw materials comprise renewables (e.g.
agricultural biomass, fish, timber, etc.) and non-renewables (e.g. fossil fuels,
industrial minerals, metal ores, construction minerals).

Sustainable use and management of natural resources 63

 Abbreviations and definitions

Natural resources The European Commission defines natural resources to include: raw materials
(e.g. minerals, fossil energy carriers, biomass), environmental media (e.g. air,
water, soil), flow resources (wind, geothermal, tidal and solar energy), and space
(land use for human settlements, infrastructure, industry, mineral extraction,
agriculture and forestry).
In this report, the term natural resources broadly covers raw materials, water,
energy, and land.

Precautionary principle Defined in EEA (1999) to permit a lower level of proof of harm to be used in
policy-making whenever the consequences of waiting for higher levels of proof
may be very costly and/or irreversible.

Resource (material) productivity Defined as the efficiency with which energy and materials are used throughout
the economy, i.e. the value added per unit of resource input, e.g. GDP divided by
total energy consumption.

Structural indicator Structural indicators are used in the Commission's annual synthesis report to the
European Council to show progress towards the Lisbon objectives. They cover the
five domains of employment, innovation and research, economic reform, social
cohesion and environment as well as the general economic background.

Total material requirement (TMR) Indicators of resource use that take into account domestic material extraction and
and total material consumption indirect flows associated with domestic extraction and imports (so-called 'hidden
(TMC) flows' that do not directly enter the domestic economy). TMR includes used and
unused domestic extraction, imports, and indirect flows associated with imports;
TMC subtracts exports and indirect flows associated with exports from TMR.

64 Sustainable use and management of natural resources

 References

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