Table Of ContentGreenTech
made in Germany 3.0
Environmental Technology Atlas for Germany
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Published by: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Public Relations Division · 11055 Berlin · Germany
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CONTENTS
Introduction 4
Executive summary 6
Megatrends – Global growth drivers for the environmental technology 12
and resource effi ciency markets
The German and international markets for environmental technology 24
and resource effi ciency – Traditional economic sectors are
providing the basis for green tech growth
The six lead markets for environmental technology and resource effi ciency 44
Environmentally friendly power generation and storage 45
Energy effi ciency 64
Material effi ciency 86
Sustainable mobility 98
Waste management and recycling 112
Sustainable water management 124
How environmental technology and resource effi ciency are driving the modernization 136
of traditional economic sectors – Transformation in four dimensions
The dawn of the green economy 137
Distributed power supply structure 148
Smart cities 160
Environmental technology services – 170
New challenges, new business models
Environmental technology and resource effi ciency in Germany – 180
Structure of the industry
Supportive measures in federal states 206
Highlights of environmental technology and resource effi ciency 224
“made in Germany”
List of tables and fi gures 242
Bibliography 248
3
INTRODUCTION
In Germany and around the globe, environmental The rapid pace of growth in these lead markets never-
technology and resource effi ciency have become pow- theless demands closer, more granular examination if
erful drivers of economic growth. Companies in this trends and shifts in the marketplace are to be identi-
industry operate in a vibrant, dynamic market that is fi ed with suffi cient accuracy. For this reason, two extra
shaped by technological progress as well as by chang- hierarchical levels – market segments and technol-
ing political and social conditions. At the same time, ogy lines – have been added below the level of the
innovative products, processes and services that are ef- lead markets. This structure maintains a systematic
fi cient and ecofriendly are attracting unprecedented overview while also accommodating dynamic ongo-
demand on international markets. ing development. The breakdown allows us to dig
deeper and provide more detail without losing sight of
This third edition of GreenTech made in Germany the equally important developments taking place on a
adopts a slight shift of emphasis, placing the environ- wider scale.
mental technology industry more clearly in the con-
text of the pivotal ecological, economic and political To properly place the environmental technology and
challenges of our day. It begins with the premise that resource effi ciency industry in the context of cen-
the green tech industry and its various players are cen- tral ecological, economic and political challenges,
tral to the transformation into a “green economy” that GreenTech made in Germany 3.0 also includes another
heeds and applies the principles of sustainability. At new feature: a detailed account of four dimensions of
the same time, the atlas clearly shows that traditional transformation as we move toward a green economy.
industry sectors, too, have an integral part to play in This addition enriches the GreenTech Atlas by specify-
this “greening” process: First, the fact that green tech ing the kind of concrete solutions with which green
has its roots in traditional engineering disciplines tech can help us master the challenges of demograph-
itself facilitates the development of environmental ic development, scarce resources, climate change and
technologies. Second, these technologies in return other global megatrends.
drive modernization in traditional industries, espe-
cially by improving their energy and material effi cien- Our description of the four dimensions of transfor-
cy – thereby giving companies a strategic advantage mation is anchored in an extensive presentation and
over international competitors. analysis of environmental technology and resource ef-
fi ciency in Germany. The centerpiece of this portrait is
GreenTech made in Germany 3.0 once again looks a company database compiled specially for GreenTech
in detail at the six lead markets – environmentally made in Germany 3.0 on behalf of the Federal Ministry
friendly power generation and storage, energy effi - for the Environment. It contains around 2,000 data
ciency, material effi ciency, sustainable mobility, waste sets on green tech companies – almost double the
management and recycling and sustainable water number of company profi les in the 2009 edition .
management – that have proven to be a valuable
structure for analyzing the green tech industry.
4
5
Executive summary
6
EXECUTIVE SUMMARY
Environmental technology: 2010. In 2011, environmental technology and
Green and growing resource effi ciency bearing the “made in
Germany” label had a total market volume of
Not even the fi nancial and economic crisis of 2009 EUR 300 billion. Thanks to their strong position on
was able to put the brakes on rapid growth in the international markets, German green tech companies
environmental technology and resource effi ciency are benefi ting from the upsurge in demand both at
industry. Between 2007 and 2010, the global home and abroad. Energy effi ciency represents an
market for green tech expanded at an average rate important part of the environmental technology
of 11.8 percent per annum, reaching a volume of market in Germany, as it does globally: the energy
EUR 1,930 billion in 2010. This fi gure was well ahead effi ciency market in Germany is worth EUR 98 billion,
of the forecast of EUR 1,670 billion published in the almost one-third of the total German green tech
second edition of the GreenTech Atlas. The forceful market. This also refl ects the strength of German
expansion was driven by dynamic developments in green tech companies, whose energy effi ciency
environmental technology services plus the “green” solutions put them among the global market leaders.
economic programs launched internationally in Clearly, German companies know how to make
response to the crisis. excellent use of their strengths in measurement and
control systems, as well as in other cross-sector
In 2011, the global market volume for technologies such as electric motors and heat pumps.
environmental technology and resource
effi ciency was put at just over EUR 2,000 billion. The environmental technology and resource
The lead market for energy effi ciency accounted for effi ciency industry will be worth an estimated
the largest share of the market, up from EUR 538 EUR 674 billion in 2025. By then, the lead market
billion in 2007 to EUR 720 billion in 2011. This for environmentally friendly power generation
increase was driven by rising energy prices and the and storage will probably account for the largest
scarcity of energy resources, coupled with growing share – some EUR 220 billion – of the German green
demand. Economies around the world are realizing tech market. This particular lead market breaks
that they have to reduce energy consumption to the down into three distinct segments that are crucial to a
greatest extent possible. Accordingly, demand climate-compatible energy supply: renewable
for products and processes that improve energy energy, the environmentally friendly use of fossil
effi ciency is on the rise. fuels, and energy storage. In Germany, the growing
use of renewable energy is a key driver of develop-
The lead market for energy effi ciency breaks ments in the lead market for environmentally friendly
down into four market segments: energy-effi cient power generation and storage. These developments
production processes, cross-application are leading not only to more capacity for power
technologies for industry and commerce, generation from renewable sources but also to greater
energy-effi cient buildings, and energy-effi cient demand for storage technologies. Energy fed into the
appliances. Together these segments constitute the grid from renewable sources fl uctuates, making it
key levers for reducing energy consumption. For all more diffi cult to achieve the balance between
economies, improving energy effi ciency will be a production and demand that is essential for the
tremendously important issue in the years ahead. stability of the grid. Storage technologies will play
Further substantial growth is to be expected. an increasingly important role in maintaining this
equilibrium in the decades ahead. The lead market
Worldwide, the six lead markets in the green tech
for environmentally friendly power generation and
industry will be worth a combined total of EUR
storage can expect to see strong growth.
4,400 billion by 2025, a fi gure that corresponds to
average annual growth of 5.6 percent between
now and then. Even when the stimulus programs
Green tech industry strongly positioned in
of 2008 and 2009 have run their course, the
Germany and around the globe
environmental technology and resource effi ciency
industry will still remain on course for expansion. German green tech providers‘ standing on the
According to current forecasts, energy effi ciency world‘s markets is excellent: Their global market
will have a volume of EUR 1,236 billion in 2025, share of 15 percent speaks for itself. In the future,
retaining its position as the largest single green tech German companies will continue to benefi t from
market in the world. growing global demand for environmental
technology and resource effi ciency products and
Green global growth is giving positive impetus to solutions. Current forecasts indicate that German-
environmental technology companies in Germany. made green technology will still have a 15 percent
The German green tech industry grew an share of the global market in 2025. Defending their
average of 12 percent per annum from 2007 to turf in this way is a sign of just how resilient German
7
market players are. Even now, they are having to More than 80 percent of green tech companies
assert themselves on international markets against in Germany made a profi t in 2010. Profi tability
aggressive new competitors who also want a slice averaged 6 percent across all companies in the
of this attractive, growing industry. Nor do all the industry. Energy effi ciency led the fi eld: 11 percent of
new rivals come from industrialized countries: Many companies in this market generated profi ts in excess
originate from emerging markets, fi rst and foremost of 20 percent.
China, whose exports of photovoltaic and wind power
technology are growing vigorously. German environmental technology and resource
effi ciency fi rms are upbeat about how business
Environmental technology currently accounts will develop in the years ahead. They expect to
for 11 percent of Germany‘s GDP. By 2025, the see average annual growth of 10.6 percent
fi gure will probably be 15 percent. These numbers between now and 2015. Separate analysis of each
underscore the signifi cance of environmental lead market reveals that environmentally friendly
technology and resource effi ciency in Germany. power generation and storage companies have
They also indicate the industry‘s growing contribution the greatest expectations in terms of revenue
to German economic output. development (13.7 percent). In line with their positive
take on revenue development, German companies
The employment fi gures also refl ect the ongoing in the environmental technology and resource
growth of the green tech industry. In 2011, the six effi ciency industry also anticipate average annual
lead markets discussed in this GreenTech Atlas growth in their workforce of 8.4 percent.
accounted for 1.4 million jobs. By 2025, they are
expected to employ 2.4 million people.
Global megatrends as drivers of growth
The green tech industry in Germany The confi dence of Germany‘s green tech players
is rooted in foreseeable growth in the global
Environmental technology and resource effi ciency market for environmental technology and
is a typical cross-sector industry. Many companies resource effi ciency. This uptrend will to a very large
that started out in traditional branches of industry degree be driven by fi ve megatrends that will shape
such as electrical, mechanical and automotive social, political and economic conditions around the
engineering have gradually diversifi ed their world in the decades ahead. The megatrends in
way into green technology. These deep roots in question are demographic development,
traditional industries have proved a key success factor urbanization, globalization, scarcity of resources,
for environmental technology in Germany. By the and climate change.
same token, traditional industries have environmen-
tal technology and resource effi ciency to thank for Demographic development
valuable stimulus in the areas of innovation and The Earth will probably be home to around 8.3 billion
market differentiation. people in 2030 – around a fi fth more than today. By
2050, according to United Nations forecasts the global
The majority of players in Germany‘s environmen- population will have risen to over nine billion people.
tal technology and resource effi ciency industry are Demographic development will vary from region to
small and medium-sized enterprises (SMEs) with an region. In 2050, Europe will probably be inhabited
average workforce of around 300. Nine out of ten by around 19 million fewer people than today. Con-
German green tech companies have annual revenues versely, the population of Africa will double in the
of less than EUR 50 million; the average is just under same period. Asia‘s population will increase by a bil-
EUR 27 million. Revenue per employee averages lion people between now and 2050.
out at EUR 90,000 – lower than that of traditional
disciplines such as electrical engineering (at around Urbanization
EUR 220,000) and automotive engineering United Nations statistics for 2010 showed that, for the
(EUR 470,000). SMEs play a prominent part in all fi rst time in world history, more people lived in cities
lead markets in German environmental technology than in rural areas. By 2030, two-thirds of the world‘s
and resource effi ciency. Many of these fi rms are population will probably live in urban areas. Urban
extremely fl exible and innovative. Moreover, since growth is taking place mostly in Asia and Africa,
their solutions and processes stand out from the where more and more megacities – cities with more
crowd, the rather fragmented structure of the than 10 million residents – are emerging. The rapid
industry does not necessarily put them at a pace of urban growth is putting ever more pressure on
competitive disadvantage on global markets. the environment. Cities‘ need for energy, their traffi c
volume and the industry they spawn mean that they
8
EXECUTIVE SUMMARY
are responsible for up to 80 percent of the world‘s in the long term. That means striking the right
carbon emissions. balance between enabling successful business,
protecting the natural basis for human life,
Globalization ensuring social cohesion and shouldering
Various factors have sharply accelerated the pace international responsibility. These main tenets of
of globalization in recent decades, causing both the sustainable development show the direction we must
world‘s capital markets and its real economy to take in mastering the transformation into a green
become far more deeply integrated. Between 1990 economy.
and 2008, global gross domestic product (GDP)
expanded at an average rate of 3.5 percent per year. The green economy is a form of economy
Exports grew by an average of 8.7 percent per year, characterized by innovation-driven, ecological and
while foreign direct investment increased by participatory growth. It rests on two pillars: a strong
12.4 percent per year. environmental technology industry on the one hand
and, on the other, companies in traditional industries
Scarcity of resources whose sustainability strategies are integrated into
The combination of population growth, urbanization all levels of their management system. The
and growing industrialization, especially in emerging environmental technology and resource effi ciency
countries, is driving up demand for energy and hence industry is a key driver of development toward such
fossil fuels. The International Energy Agency (IEA) a green economy.
believes that primary energy consumption worldwide
will climb by one-third between 2010 and 2035. Visible strategies and tangible product innovations
Non-OECD countries will account for most of this already give us an idea of where this development
forecast increase – some 93 percent. might lead. Below, we describe four specifi c dimen-
sions in which transformation is both necessary and
Apart from a temporary dip during the economic and already underway, illustrating the kind of solutions
fi nancial crisis of 2008/2009, the prices of mineral environmental technology and resource effi ciency
resources have risen constantly in recent years. can provide for the urgent challenges humankind
This trend is set to continue. Growth in emerging faces in the decades ahead as a result of demographic
countries and the increase in the global population change, the scarcity of resources, climate change and
to nine billion people by 2050 will cause demand for the threat to biodiversity.
raw materials to continue to rise. Already, 60 billion
tons of commodities are consumed worldwide every Each dimension of this transformation constitutes
year – 50 percent more than three decades ago. an important step along the road to sustainable
economic and social development. The section
Climate change entitled The dawn of the green economy stakes out
In 2010, carbon emissions given off by the burning the context for transformation in the other three
of fossil fuels set a new record of 30.6 gigatons. If dimensions.
emissions of greenhouse gases are not curbed, climate
researchers reckon that the global temperature could The dawn of the green economy
increase by three to seven degrees Celsius relative The green economy is built on a combination of the
to pre-industrial levels. Any increase of more than environmental technology and resource effi ciency
two degrees will pose a severe and in some cases industry and companies in traditional industries that
unpredictable threat to the Earth‘s ecosystems. The rigorously implement sustainability strategies.
sea level will rise and extreme weather events such as Companies in every industry interact with different
droughts, torrential rain and fl ooding will increase, groups of stakeholders. These stakeholders –
for example. To limit the rise in the mean global especially governments, customers, investors
temperature to two degrees Celsius, global and companies – play a pivotal role in the
greenhouse emissions must be reduced by 50 to transformation to a green economy, providing a
80 percent relative to their 1990 levels. powerful stimulus.
The expectations and demands of stakeholders are
How environmental technology and resource largely shaped by three global megatrends: climate
effi ciency can help us master the challenges change, the scarcity of resources, and population
posed by global megatrends growth. The parts played by each group of
stakeholders in the transformation to a green
In light of demographic development, climate economy are illustrated by the following facts and
change and the scarcity of resources, there is no trends: The government has been instrumental in
alternative but to make our economies sustainable writing Germany‘s environmental protection
9
success story. It was quick to stake out a regulatory era. Moves to ramp up renewable energy necessitate
framework and create economic incentives. These the modernization of the grid infrastructure if the
actions effectively gave the green light to investment challenge of combining centralized and distributed
and innovations that paved the way for the emergence power generation is to be mastered in the coming
of new markets for environmental technology and years. To keep the grid stable, load management is
resource effi ciency. For customers, sustainability is needed on the demand side, which is possible only
becoming an important aspect by which companies if energy consumers are integrated intelligently via
and their products are judged. Compliance with social a smart grid. The term“smart grid” embraces all
and ecological standards is increasingly a key criterion aspects of the intelligent coordination and control of
in purchase decisions. This is as true for private the various components hooked up to the power grid.
consumers (business to consumer) as it is for Another crucial aspect of the energy system of the
intercompany (business to business) relationships. future is the expansion of centralized and
distributed storage capacity to help balance out
In the fi nance industry, sustainability is established fl uctuations in power generation and demand.
as an important yardstick in investment decisions by
both private individuals and professional fund man- Smart cities
agers. This trend will grow even stronger in the years By 2050, more than six billion people – around 70
ahead. Companies are coming under increasing pres- percent of the world‘s population – will live in cities.
sure from the government, customers and Cities play an ambivalent role: On the one hand, they
investors to align their business strategy with the are our economic powerhouses, on the other, they
dictates of a resource-effi cient, low-carbon economy. are ecological danger zones. Cities in advanced
If the challenges of climate change and scarce economies face a very different set of challenges to
resources are to be mastered, companies must – cities in emerging and developing countries. In the
irrespective of the industry in which they operate – latter, the most pressing need is to build a robust
formulate strategies that translate sustainable infrastructure where none exists at present. But the
development principles into sustainable business industrialized nations must overcome entirely
operations. different hurdles. In these countries, the primary
challenge is to “retrofi t” existing infrastructures
Distributed power supply structure in line with the need for sustainability and climate
The new energy policy ratifi ed by Germany’s protection, thereby improving the quality of life and
Bundestag in summer 2011 envisages a work.
fundamental change to Germany’s power supply
system. The package of laws links a clearly defi ned Different regions of the world have widely differing
timeframe for phasing out the commercial use of starting points. However, intelligent environmental
nuclear power to a concept for improving energy technology and resource effi ciency offer solutions
effi ciency and expanding the use of renewable for urban areas in both the industrialized world and
energy. Renewable energy is to account for 80 percent emerging and developing countries. The smart cities
of the national power supply by 2050. In the decades concept, in which information and communication
to come, distributed power generation systems will technology (ICT) plays a key role as enabler, opens
service an increasingly large proportion of Germany‘s up the possibility of a sustainable future in urban
demand for electricity. Environmental technology agglomerations. Networking within and between
is playing a central role in shaping this historic different urban subsystems – traffi c, the power
transition. supply, buildings, production facilities, healthcare,
and so on – is a characteristic trait of smart cities. In
Cutting-edge products and solutions create the the interest of brevity, this atlas zooms in on just two
conditions needed for the integration of distributed of these areas: traffi c and buildings. Focusing on
power producers into existing power grids in the years smart mobility and smart buildings highlights how
ahead. This in turn will enable renewable energy to immensely important environmental technology is
meet the demand for electricity in the long term. More as a cross-sector industry. Intelligent traffi c solutions
and more individual citizens are already seizing the concentrate primarily on emission-free and low-
opportunity to switch from being power consumers emission strategies for personal mobility. For its part,
to power producers. They are doing this – jointly or in the smart building concept is not confi ned merely to
isolation – by using photovoltaic, biomass and wind structural alterations that improve energy effi ciency
power plants to meet their electricity needs. Since in new and renovated buildings: It also seeks to use
the energy-effi cient production of power and heat intelligent control to enhance effi ciency. Accordingly,
is vital to the expansion of distributed power supply a smart building is defi ned as a building that is fi tted
structures, combined heat and power ranks as one of with cutting-edge automation systems and is part of a
the essential technological drivers in the new energy smart grid.
10
