The European environmental industry sector has enjoyed considerable growth in recent years. Today the sector is a prominent force in the European economy. It represents about 2.1 per cent of the European Union’s Gross Domestic Product and accounts for some 3.5 million jobs across the Union.

Despite such excellent figures, the capacity for European industry to innovate in an environmentallyfriendly manner is often underestimated by society at large. The European Commission recognises the key role the environmental industry plays in Europe’s economy and appreciates the sector’s vast potential in promoting growth and creating jobs in areas such as sustainable resource use, climate change and energy efficiency...

Little, it seems, stands still for long when it comes to our environment. And the pace of change is accelerating at global, European and national levels. Keeping up with these changes can be difficult enough. Staying ahead of the game, and capitalising on the opportunities presented can prove a real challenge. But the opportunities are there, and UK environmental industries are well placed to make the most of existing and evolving environmental regulation, increasing environmental awareness, and vociferous demands for environmental protection and improvement as well as for ‘solutions’ to the problems we face.

Climate change is a good example of a rapidly changing environmental landscape with significant implications and opportunities at every level, from individual households to global governance.

There is overwhelming scientific agreement that human activities are the main cause of the current global warming. The Environment Agency’s view is that climate change is the number one global challenge to the environment.

The recent Intergovernmental Panel on Climate Change Working Group reports Climate Change 2007 present powerful evidence that many natural systems are being affected by climate change, particularly temperature increases. Also, the future impact of climate change will be much greater than previously thought.

We all need to act. There has been a step change in the way the public sees the challenges of climate change. More and more, it’s rightly becoming an important part of the way we organise our lives.

Since the publication of the 2006 report there have been a number of developments that continue to highlight the important role that the environmental industries must play in helping us to achieve our environmental goals.

Climate change has continued to head the political agenda and a key development during the last year was the publication of the Stern Review, which provides a solid analysis of the complex economic challenges around climate change. It clearly demonstrates that it is the costs of inaction, not action, that are the threat to growth.

The Review also highlights the important role that technology – research, development, demonstration and deployment – has to play as we strive to mitigate and adapt to the changing global climate...