INTRODUCTION

  The Environment Agency is responsible for environmental regulation and management in England and Wales. In addition to its functional duties linked to environmental protection and water management, it has an overarching duty to contribute to the achievement of sustainable development. In this respect, it is implementing a long-term Environmental Strategy aimed at protecting and improving the environment, while enabling the nation's social and economic base to develop. The Agency also has a duty to carry out research in support of its functions and plays an active role in Foresight. (The following evidence is supported by the findings of Foresight).

SUMMARY

  The "environmental imperative" for industry and society to shift towards environmentally cleaner and more efficient products and processes is emerging as a key driver of innovation. This move is increasingly consumer-led, and applies to a wide range of markets. It deserves identifying as a driver in its own right—alongside, but separate from, the more traditional "market pull" and "technology push".

  1.  With regard to the role of Foresight in identifying priorities, there is evidence that industry is becoming increasingly aware of the "environmental imperative" as a driver of innovation, alongside the traditional "market pull" and "technology push". This applies to a wide range of products in those fields of engineering and physical sciences where traditional production and consumption processes have impacts on the environment, or utilise resources, to a degree which is unsustainable. This "environmental imperative" is driven by the fact that environmental pollution and consumption of natural resources are accelerating as both global population and wealth per capita increase.

  2.  The accelerating pace of change calls for innovation to further sustainable development—the challenge is to do more with less. (This is a central plank to Government's strategy for Sustainable Development). This means developing and introducing cleaner and more efficient technologies. For example, both agricultural and industrial production needs to encourage cyclical resource-efficient processes rather than linear processes which give rise to a higher level of waste.

  3.  The critical driver of the "environmental imperative" is stakeholder pressure (from shareholders, customers and the general public). Public concern is particularly high over health related issues.

  4.  In terms of response, Government needs to promote the direct use of economic instruments to discourage the use of scarce resources and/or adverse impact on the environment. This would include incentives and disincentives to encourage a more sustainable national economy, and cleaner and more efficient industrial processes and products. In particular, the Government should consider means of providing more support for the development (as distinct from research) and demonstration of these clean and efficient science and technologies. A critical "innovation gap" exists here.

9 April 1998