Foreword by Erik Solheim, Minister of the Environment and International Development

Environmental technology – a new market rising on the horizon

Our world is facing serious environmental challenges; climate change, loss of biological diversity, use and discharge of hazardous chemicals, and other transboundary pollution problems to both air and water.To meet these challenges a fundamental shift in society's use and reuse of resources is needed. Although, technology alone cannot solve our environmental problems, I believe environmental technology is an important stepping stone to enable a swift transition to a Green Economy based on the principles of sustainable development.

Increased use and enhanced commitment to the development of environmental technology has the potential to reduce the cost of the necessary changes that environmental challenges have caused. Development of environmental technology may also contribute to the needs of developing countries as economic growth may be achieved without corresponding increases in stresses to the environment.

The Norwegian government believes that effective regulations are necessary to attain sustainable progress in the field of environmental protection. Stringent environmental requirement will ensure a high level of environmental protection and create market demands for advanced environmental technologies. This will provide businesses the necessary monetary incentives to invest in ecological innovation, which is considered to be a key element in establishing reliable markets for environmental technologies.

In this regard I believe it is important to recognize that environmental challenges are global trends that indicate where the future markets for environmental technologies will emerge. The world needs more clean energy and increased energy efficiency. Products, buildings and structures must be produced and administered in a sustainable manner. Access to clean water is scarce in many parts of the world and about 90 percent of all wastewater in developing countries is discharged directly into rivers, lakes and oceans. Although, such problems presents tremendous challenges for all countries and regions it may also provide opportunities in terms of economic and social development. As stated by the United Nations Secretary-General’s Advisory Board on Water and Sanitation: “the wastewater challenge is not only a threat, but a challenge where we can find opportunities for green employment, social well-being and ecological health”.

A study conducted on behalf of the German Ministry of Environment on the occasion of the German EU Presidency in the spring of 2007 showed that the world market for environmental technology is estimated to about 8,000 billion euro’s in 2005 and is expected to grow to about 10 200 billion euro’s in 2010 and 19 600 billion euro’s in 2020. The world market is already enormous and estimates show that it will have an average annual growth of over 5 percent until 2020.

The Norwegian business sector has the industrial competency and skills that are relevant to the growing world market for environmental technology. We have a strong industry in areas such as maritime, oil and gas, seafood processing, metals and materials and recycling. It provides expertise in technology areas such as solar energy and materials, carbon capture, hydropower, environmentally friendly vessel technology, and reduced emissions from oil and gas production. In addition, Norway has expertise in several other environmental technology areas like waste management and environmental surveillance.

Today, the market for environmental technology is to a large extent immature. However, significant investment in applying environmental technologies in many countries, new international environmental agreements and instruments, along with increased awareness of the extent of environmental problems and the urgency to reduce them, will contribute to growth in these markets. A good example is the demand for alternative energy sources as a result of emissions commitments and flexible mechanisms under the Kyoto Protocol. Until now, the biggest growth has been in industrialized countries, but developing countries will be central in the future.

As the environmental technology marked is regarded as one of the most promising technology markets in the world, it is the ambition of the Norwegian Government to take our share of this market and release the potential for value creation and new jobs and by doing this we will contribute substantially to solve environmental concerns both in Norway and elsewhere in the world. As this book certainly illustrates, I am confident that Norway is well placed to take part in this value creation by delivering internationally competitive products that can help to reduce our global ecological footprint.