European Report: Good Environmental Regulation Good For Competition

Good environmental management and regulation encourages competition and
sustainable economic development, according to a report released by the heads
of all European Environmental Protection Agencies (EPAs).

Launching the report, the UK's Environment Agency's Chief Executive Barbara
Young said the findings demonstrated the importance of good environmental

"This new analysis shows that businesses and industries with
environmentally-friendly practices are prospering and making savings -- its
solid evidence that effective environmental regulation can drive innovation, it
can foster new markets and reduce business risks.

"In the past we have often been forced to defend claims that rigorous
regulation inhibits economic development and reduces competitiveness -- this
simply is not true -- countries with good, well-designed environmental
regulation are the best countries to do business in.

"I hope the business community will take part in our conference and join the
debate that is shaping environmental protection at a local, national and
international level and assess the commercial opportunities of upcoming policy
initiatives," she said.

The EPAs found that good environmental regulation:

  • Reduces business risk and increases investment market and insurer confidence
  • Banking and insurance sectors provide better access to capital and lower
    insurance premiums for businesses with good environmental record and low
    environmental risks.
  • Assists competitive advantage and creates competitive markets -- The negative
    impact of regulation on competitiveness is frequently overstated, ignoring the
    role of industry self-regulation and voluntary action. Regulation can help
    provide the certainty and equity needed for competitiveness.
  • Drives innovation -- data clearly shows that the costs of addressing
    environmental regulations can be minimized, if not eliminated, through
    innovation that delivers other benefits.
  • Creates markets for environmental goods and services -- Countries with high
    environmental standards often have market-leading firms and record better
    economic performance than those with lower standards.

Further info

AplusA-online.de - Source: Environmental Protection