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2009-08-05 00:00:00
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EU issues assessment of industry's competitiveness Source: ENDS Europe ------------------------------------------------------------------The European Union's eco-industry is likely to be "badly affected" by the current economic crisis as reduced industrial activity weakens demand for environmental technologies, according to a European Commission report published last week. US venture capital investment in clean technologies has "skyrocketed" in recent year whereas investment in Europe has grown at a "moderate pace", according to the report. "Although we are not there yet, the possibility of the US establishing itself as the technology leader in eco-industry cannot be ruled out", says the commission. The report provides a sector-by-sector assessment of the European industry's competitiveness. It highlights the impact of environmental legislation on 32 sectors including the food industry, wood products, steel and cement. It also shows how these sectors are addressing challenges such as globalisation and climate change. In the textiles and clothing sector for example, the majority of small and medium size companies are "vulnerably compliant" with environment legislation, says the commission. Ecolabelling and eco-management schemes "need to become more product focused and user-friendly for the sector", it adds. Regarding the REACH chemicals regulation, textile companies could face significant adaptation costs if certain chemicals of critical importance become "vulnerable to withdrawal from the market". But REACH could also "bring business benefits and innovation by increasing the
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