Lysbilde 1

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Integrating innovation and environmental policies
in Norway presented by Audun Ruud
ProSus University of Oslo As part of the
session on Policy integration conflicts and
synergies in the 2nd EcoInno Seminar Developing
policies promoting eco-efficiency Necessary
features 26 27 August 2004, Helsinki - Finland
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What can be done to strengthen an integration of
innovation- and environmental policies?
Innovation policy

• We have three options
• A greening of innovation policies
• - an integration of environmental concerns
• into innovation policies
• An innovation in environmental policies
• - an integration of innovation concerns into
• environmental policies
• Strengthened interaction of
• environmental- and innovation
• policies. Stimulation of dialogue
• between two policy fields

Environmental concerns
Environmental policy
Innovation concerns
Innovation policy
Environmental policy
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Policy integration

• Refers to an integration of economic, social and
  environmental dimensions into other policy
  fields. This also refers to integration into
  national sectoral plans and programme as stated
  in chapter 8 of Agenda 21 agreed upon at the
  UNCED in 1992
• Also identified by the EU, OECD og The Nordic
  Council of Ministers as a principal policy tool
  for the promotion of Governance for Sustainable
  Development.
• De-coupling is a central reference
• Identified by the same organisations as a major
  objective to reduce non-sustainable practices
• Aims at de-linking negative environmental impacts
  from economic and social drivers
• Is also underlined in the Norwegian Action Plan
  for Sustainable Development NA21, published in
  October 2003

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How is the environmental policy organized in
Norway?
The DPSIR-model
Policy-integration
De-coupling
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Solutions are often found in environmental
technologies, but how to operationalize such
technologies within relevant policy terms?

• Two policy options
• 1. To pursue green and clean innovation policies
• - to continue with current innovation policy
  priorities and business as usual, but by
  introducing environmental concerns as an
  end-of-pipe treatment
• 2. To pursue a greener and cleaner innovation
  policy
• to stimulate more integrative measures allowing
  environmental concerns to function instrumentally
  while designing and implementing innovation
  policies

A central question To what extent is
de-coupling a concern when environmental
technology policy is discussed?
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The Norwegian Environmental Management system
(NEMS)Specified in white paper 8 (1998-1999)
What is the feature of Norwegian environmental
governance?
The Governments environmental policy and the
State of the environment (MoE)
Result and documentation-system (RDS) Coordinated
by the State Pollution Control Board - SFT
Cross sectoral analysis MoE and relevante
Directorates
Sectorial environmental action plans All
Ministeries including NHD
Sectoral environmental reporting All Ministeries
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What is the status of relevant integrative policy
efforts within the Ministry of Trade and Industry
(NHD)?

• Nothing on innovation in the environmental action
  plan published by NHD
• Only a few and relatively vague references to
  innovation in the environmental profile of NHD in
  the state budget of 2004 (white paper 1)
• The government will motivate firms to be among
  the front-runners in implementing environmental
  initiatives. This creates a better environment,
  etablishes a basis for Norwegian business to
  develop comparative advantage in environmental
  technologies and it can strengthen the
  competitiveness in the long run. (my
  underlining)
• But how?
• Only one policy instrument mentioned (The EMBa
  programme as part of RENERGI) coordinated by the
  Research Council of Norway (RCN)
• It is a long journey from the RCN to develop
  comparative advantage in environmental
  technologies!
• ? Conclusion Recommendations, but no political
  steering at the Ministry with respect to
  integrating environmental- and innovation
  policies!

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Perhaps something is happening within
Directorates coordinated by the Ministry of Trade
and Industry?

• Innovation Norway the Trade Council and
  regional development fund
• Only one specific effort Bio-energy for farming
  (NOK 18 mill 2,2 mill)
• Environment, however, is one of several
  evaluation criteria.
• But environmental projects are not prioritized.
• Promotion of new renewable energy technolgy is
  proposed, but no clear follow-up
• Argentum government-owned investment company
• Environment is one of seven proposed investment
  areas (White paper 38 (2000-2001)), but Argentum
  has (almost) no investments in environmental
  firms or green technologies
• SIVA the Industrial Development Corporation of
  Norway
• No specific environmental criteria or action plans

What about other Ministeries and their sectoral
activities Do they make a difference?
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What is happening in other Ministeries to promote
an integration of environmental- and innovation
policy concerns?

• Ministry of the Environment(MoE)
• Historically MoE has been involved in several
  efforts to promote environmental technology, but
  few current initiatives
• And the MoE is not part of the innovation
  committee of the Government coordinated by NHD
• The State Pollution Board (SFT) has expertize on
  environmental technologies, but no focus on
  innovation policy
• Ministry of Oil and Energy (OED)
• Enova is recently established to promote
  increased use of new renewable energy
  technologies but without any focus on technology
  development
• A separate gas-innovation company has been
  established and located far away from Enova
• No other relevant references in OEDs
  environmental profil of the state budget for 2004
• Recently in June 2004
• OED together with the Ministry of Transport will
  allocate NOK 900 mill over 10 years to establish
  a national programme on Hydrogen. This will be
  located at the gas-innovation initiative in
  Grenland
• What about Enova that still has a policy mandate
  to promote domestic use of natural gas?

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High profiles in national programmes, but are
they integrated at the horizontal level?
National Agenda 21 an action plan for
sustainable development published as chapter 6 in
the white paper 1 for 2004 the national budget.
? ? ? ? ?
From Idea to action The National innovation
action plan - HIP
Conclusion No integration of environmental- and
innovation policy! WHY?
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Why is it difficult to promote policy integration?

• The prime ministers office a weak institution
  compared to the situation in other countries
• Ministry of Finance In charge of NA21, but with
  a propensity to focus on fiscal measures only.
  Few references to efforts needed to enable
  relevant policy integration towards sustainable
  development
• Ministry of Environment a Ministry in charge of
  sustainable production and consumption concerns,
  but with only limited cross sectoral influence
  particularly compared to the Ministry of Finance
• Ministry of Trade and Industry has clearly shown
  only limited interest on relevant cross-cutting
  issues such as a greening of innovation policy
• The same propensities among other relevant
  Ministeries such as Ministry of Oil and Energy
• Stortinget/Parliament has apparently only
  limited interest in related issues at least
  when we focus on the debates related to the
  recent establishment of Innovation Norway

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Specific recommendationthe horizontal challenge

• Cross sectoral national analysis of current
  situation
• The formulation of a green innovation action plan
  of Norway
• MoE does relevant work related to the
  Environmental Technology Action Plan of the EU,
  but other Ministeries and particularly the
  Innovation Ministry (NHD) ought to be involved
  in developing a comprehensive plan
• A steering/coordination body at high political
  level ought to be established the prime
  ministers office
• a Secretariat and a phone number to dial.
• Hands on resources for green innovation and
  facilitation of coordination between various
  Ministeries and respective sectoral priorities.
• Flexible and holistic approach to selected green
  innovations. Approach towards niche management.
• Broad participation enabling discussion and
  exhange of experiences related to green
  innovations experiences in various sectors
• Targets must be developed triggering reporting
  and guidelines to faciliate relevant cross
  sectoral policy integration

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Recommendations on the vertical dimension within
the domain of specific Ministeries

• Sectoral strategies for a greening of innovation
  policy
• Specific measures for green innovations
• a sub- secretariat and a phone number to dial.
  
• to faciliate coordination between various
  department, directorates within the sector.
• Flexible and holistic approach to selected green
  innovations. Approach towards niche management
  coordinated with the concerns of other sectors.

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However Is it really possible for the
innovation policy community to contribute to
sustainable development?

• Are systemic ecological limits accepted among
  innovation policy-makers?
• If yes
• Is it really possible to develop checks and
  balances that can be implemented and supported by
  entrepreneurs and innovators in such a way that
  de-coupling and sustainable production and
  consumption concerns are taken into account?
• How is this greening process coordinated with
  other policy efforts such as the National Action
  Plan for Sustainable development?

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Status of innovation and environmental policy
integratioin in Finland(data based on input from
Gaia and their work with the OECD - Monit project)
Environmental policy
Innovation policy
Past No interaction
Environmental policy
Innovation policy
Now Active?? exchange of information
Innovation policy
Environmental policy
Future True joint actions and integration?
But, does this promote sustainable development?
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Four different modes of integrating
environmental- and innovation polices
Acceptance of an environmental principal/commitmen
ts No Yes
1. End-of-pipe measures Traditional promotion of
pollution control technologies
3. End-pipe-measures But related to de-coupling
and sustainable development
Green innovation policy
Greener innovation policy
4. Greener innovation policy with environmental
commitments as a governing reference
2. Efforts of integrating environmental concerns
into innovation policy domains
Integrating environmental- and innovation
policies is demanding, but ProSus is proposing an
innovation policy model stimulating economic
activity that promotes sustainable development
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ProSus model for innovation policy towards
sustainable development
A national action plan for green
innovations Focus on environmental, economic as
well as social/welfare targets
National committee for green innovations
coordinated by the prime ministers office
Sectoral strategyfor NHD
Sectoral strategy for MoE
Sectoral strategies for other Ministeries
Are specific measures in accordance with
environmental commitments and other relevant
policy documens such as the NA21?
Specific sectoral measures for green innovations
Specific sectoral measures for green innovations
Specific sectoral measures for green innovations
A growing number of economic activities promoting
Sustainable Development?