A European Eco-Efficient Economy Governing climate, energy and competitiveness

The report argues that Europe can lead a global transition to an eco-efficient economy by synchronising climate, energy, and industrial policies. It examines sector-specific experiences in energy efficiency, district heating, biofuels, renewable electricity, automotive, chemicals, and steel to demonstrate that environmental regulation can drive innovation and competitiveness. The authors propose a strategic agenda focusing on resource systems efficiency, new technology markets, and global carbon pricing, supported by hybrid governance arrangements and a systems-based approach to policy evidence.

• The transition to an eco-efficient economy is viewed as a way to simultaneously address climate change, resource efficiency, industrial renewal, and competitiveness, potentially using the 2009 economic crisis as an opportunity for recovery through green investments.
• Energy efficiency is identified as a core element of the eco-efficient economy, with the European Commission estimating that the EU wastes at least 20 per cent of its total energy use, which could cost the Union €100 billion by 2020.
• The report highlights that different support schemes for renewable electricity—specifically Feed-in Tariffs (FITs) and Tradable Renewable Energy Certificates (TRECs)—serve different goals: FITs promote innovation and new industries through price stability, while TRECs focus on market efficiency and lower production costs.
• The REACH system in the chemicals industry is presented as a 'hybrid governance' model that combines traditional command-and-control regulation with self-regulation and devolution to balance human health protection with industrial competitiveness.
• The steel industry faces a significant risk of 'carbon leakage,' where strict EU emissions policies like the ETS may cause production to relocate to countries with fewer constraints, potentially offsetting domestic emission reductions.
• The report argues that a global price on greenhouse gas emissions is the most critical long-term policy action required to avoid competitiveness imbalances and carbon leakage.
• The authors propose a six-point action plan for the EU, which includes stepping up programmed interventions for specific technologies, developing hybrid governance, pushing for global carbon pricing, assisting emerging economies, and making evidence-based policy assessments routine.

APA

Nilsson, M., Varnäs, A., Siebert, C. K., Nilsson, L. J., Nykvist, B., & Ericsson, K. (2009). A European Eco-Efficient Economy Governing climate, energy and competitiveness. Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/europeanecoefficienteconomyfinal.pdf

Chicago

Nilsson, Måns, Annika Varnäs, Clarisse Kehler Siebert, Lars J Nilsson, Björn Nykvist, and Karin Ericsson. A European Eco-Efficient Economy Governing climate, energy and competitiveness. Stockholm Environment Institute, 2009. https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/europeanecoefficienteconomyfinal.pdf.

Wikipedia

{{cite report |last1=Nilsson |first1=Måns |last2=Varnäs |first2=Annika |last3=Siebert |first3=Clarisse Kehler |last4=Nilsson |first4=Lars J |last5=Nykvist |first5=Björn |last6=Ericsson |first6=Karin |title=A European Eco-Efficient Economy Governing climate, energy and competitiveness |publisher=Stockholm Environment Institute |date=2009 |url=https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/europeanecoefficienteconomyfinal.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nilsson2009european, author = {Nilsson, Måns and Varnäs, Annika and Siebert, Clarisse Kehler and Nilsson, Lars J and Nykvist, Björn and Ericsson, Karin}, title = {{A European Eco-Efficient Economy Governing climate, energy and competitiveness}}, institution = {Stockholm Environment Institute}, year = {2009}, url = {https://www.sei.org/mediamanager/documents/Publications/Policy-institutions/europeanecoefficienteconomyfinal.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }