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27.April 2007 - 00:00

The demographic challenge to ecology

Research performed by the Finnish Government Institute for Economic Research (VATT) last year paints a bleak picture of the impact on nature and eco-efficiency in Finland if economic growth continues at its present rate and people use their increasing affluence without greater guidance or control.

According to the research, although technology is developing and, for example, emissions and fuel and energy consumption can be reduced, this will not be sufficient to compensate for the damage arising from the increase in consumption generated by economic growth. The researchers found that the greatest challenges for the future included the rapid rise in households' purchasing power and the increase in their number. Although for example the population of Finland is hardly increasing, the number of households is expected to increase from its present figure of approximately 2.4 million to 2.9 million by 2030, the biggest increase being in the number of one-person households. Among other things, one-person households require the same energy-consuming domestic appliances and cars as larger households and for example middle-aged people living alone are unlikely to be satisfied with one-room flats but rather will buy homes which previously were built to house whole families. The increase in the number of households will inevitably result in a move to municipalities in the environs of city centres, which will also increase the number of cars on the roads. It has been estimated that the private-car vehicle park could expand by as much as a third by 2030. The dizzy acceleration in total consumption is attributable to the fact that the total purchasing power of households is expected to grow by 70 % over the next 25 years, with the greatest growth occurring in the purchasing power of childless families aged over 55 and pensioners.

Similar demographic trends are also in evidence in other EU Member States. At EU level this will present major challenges to the Member States, which will put the eco-efficiency of municipalities' actions to the test. How has the Commission prepared to meet these future challenges, to ensure that, as consumption increases, we do not find ourselves in an unsustainable situation from the point of view of nature and eco-efficiency? Could a range of instruments to solve the problem be developed jointly at EU level?

Answer given by Mr Dimas on behalf of the Commission

Although the environmental performance of many goods is continuously improving, the total production, volume of consumption purchases and their use is often outstripping gains made. The result is that the total negative environmental impacts are also increasing, leading to a ‘rebound effect’.

The Commission has addressed this issue in several policy initiatives over the last years, including the communication on Integrated Product Policy(1) and the Thematic Strategies on the sustainable use of natural resources(2) and on the prevention and recycling of waste(3).

Most recently, the renewed Sustainable Development Strategy established Sustainable Consumption and Production (SCP) at the same high level of political importance as climate change, transport, natural resources and health. The Commission will now develop an SCP Action Plan. The objective is to promote sustainable consumption and production by addressing social and economic development within the carrying capacity of ecosystems and decoupling economic growth from environmental degradation. The action plan will contain new initiatives and also build on ongoing initiatives and existing instruments such as product and waste legislation, standards, environmental management schemes and innovation and technology policies, to reinforce their impact, address any gaps and ensure their contribution to global initiatives.

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