Green transition and the single market – why does it matter?
The single market framework sets very ambitious goals in terms of the EU's green transition. The long-term competitiveness strategy identifies circularity as an enabler for resilient competitiveness. The indicators in this section measure the single market’s performance in selected areas relevant to the green transition.
In recent years, the EU has made some progress in the green transition. However, to achieve the European Green Deal’s objectives, in particular on climate neutrality, the circular economy, zero pollution and protecting biodiversity, major efforts are required in some Member States that lag behind the EU average performance.
Circular material use rate
This indicator measures the degree of the economy's circularity by looking at the rate of use of secondary materials. Secondary raw materials, replacing primary materials in the economy, reduce pressures on resources and limit waste. A higher rate indicates a higher degree of circularity. On the right axis, the chart also shows the percentage change since 2019.
Secondary raw materials accounted for only 11.5% of all materials used in the EU economy, slightly increasing between 2019 and 2022. This suggests that the linear model (no reuse of material) still prevails, and the EU is far from reaching the aspirational target of 23.4% that requires doubling its circular material use rate by 2030.
Source: Eurostat
Resource productivity
As part of the green transition, EU aims to decouple economic growth from the use of resources by increasing resource productivity.
Resource productivity is expressed as the economic output generated (gross domestic product at constant prices) per unit of materials consumed. This consumption is measured in terms of domestic material consumption, which is the weight of materials (in kilograms) extracted or harvested in the country, plus imports minus exports.
Comparisons between EU countries are based on Eurostat data for 2022. Comparisons between the EU and the UK, the USA, Japan and China are based on OECD data for 2020. Due to methodological differences, the EU values calculated using the two sets of data may differ.
On the right axis, the chart also shows the percentage change since 2019. This is 43.6% for Ireland and 40.5% for Hungary.
The indicator reveals a wide variety of outcomes and trends in material productivity between EU countries and among the featured non-EU countries. This reflects not only differences in efficiency, but also differences in economic structures. The small improvement in the EU’s material efficiency in the past 3 years may be due to a combination of efficiency gains and structural changes in the EU economy.
Source: Eurostat, OECD
Recycling of municipal waste
This indicator measures the share of recycled municipal waste in total municipal waste. Recycling includes material recycling, composting and anaerobic digestion. Municipal waste represents 10% of overall waste and mostly includes household waste.
The amended Waste Framework Directive (Directive EU 2018/851) lays down the following targets for municipal waste recycling (including preparation for re-use) preparation for re-use) using a new output-based calculation method: 55% by 2025, 60 % by 2030, and 65 % by 2035.
The chart below shows the share of recycled municipal waste for the EU overall, the EU country with the biggest share (“Max of MS”) and the EU country with the smallest share (“Min of MS”).
The EU municipal waste recycling rate increased to almost 49% in 2021, from 38% in 2010. However large differences prevail among EU countries: the best-performing countries recycle more than 60% of their municipal waste, while others recycle less than 30%.
Source: Eurostat
Eco-innovation index
“Eco-innovation” is any innovation that contributes to sustainable development by reducing environmental impacts, increasing resilience to environmental pressures and using natural resources more efficiently and responsibly. It leads to developing new or significantly improved products (goods and services) or organisational practices. It also reduces the use of natural resources and decreases the release of harmful substances throughout a product's life cycle. Eco-innovation plays a vital role in the EU's industrial processes. Recent trends in the last 10 years show that eco-innovation has continuously grown in the EU overall and most EU countries. The large-scale deployment of eco-innovations across sectors and value chains is crucial for maintaining the EU’s competitive advantage in clean technologies and ensuring that the EU achieves climate neutrality by 2050. The index ranges from 0 to 100.
On the right axis, the chart also shows the percentage change since 2017.
Air emission intensity: greenhouse gases (GHG)
This indicator measures the intensity of GHG emissions from economic activities. The emissions include the following gases: carbon dioxide without emissions from biomass (CO2), nitrous oxide (N2O) in CO2 equivalent, methane (CH4) in CO2 equivalent, hydrofluorocarbon (HFC) in CO2 equivalent, perfluorocarbons (PFC) in CO2 equivalent, sulfur hexafluoride (SF6) in CO2 equivalent and nitrogen trifluoride (NF3) in CO2 equivalent. Emissions are measured in grams per euro of value added.
Higher values indicate that the economic activities emit a higher amount of GHG per euro of value added.
On the right axis, the chart also shows the percentage change since 2018.
In 2021 the economy's greenhouse gas emission intensity (which is the ratio between emissions and added value) fell by 17% compared with 2018, showing progress in decarbonising the economy.
Source: Eurostat
Air emission intensity: fine particulate matter (PM 2.5)
This indicator measures the emissions intensity of PM2.5 from the manufacturing sector.
Emissions are measured in grams per euro of value added.
Higher values indicate that economic activities emit a higher amount of PM2.5 per euro of value added.
Between 2018 and 2020, average intensity of PM2.5 in EU manufacturing was stable at 0.07 grams per euro, following a previous decrease due to EU countries applying best available techniques. There are differences among EU countries: some increased and others decreased their PM2.5 intensity during the last reported years. Further efforts are required to move towards a zero pollution industry in the EU.
Share of energy from renewable sources
This indicator measures the share of energy from renewable sources in gross final energy consumption. The revised Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources (Renewable Energy Directive) sets a binding European Union wide target of 42.5% in 2030, with an indicative top-up of 2.5%.
Values for the EU are taken from Eurostat and those for the UK, USA, China and Japan have been provided by JRC.
Renewable energy deployment has been steadily increasing in recent years and the EU has historically surpassed other major economies in this field. In 2020 energy from renewable sources represented 22% in gross final energy consumption as compared to shares approximately between 9 and 14% of UK, USA, Japan and China. In 2022, the EU share was 23%. Nonetheless, an increase of current shares is required in less than a decade to timely achieve the 2030 target (42.5%).
Source: Eurostat, JRC. The UK figure is based on data from Great Britain, thus it excludes Northern Ireland.
Small and medium-sized enterprises (SMEs) that have taken resource efficiency-measures
In 2021, 90-95% of businesses of different sizes declared that they were taking measures to increase energy efficiency. In addition, 31-38% of SMEs and 46% of large businesses declared that they offered green products or services.
This indicator measures the share of SMEs who reported that they were taking at least one resource efficiency action in response to the question “What actions is your company undertaking to be more resource efficient?”. Data are provided by company size (0-9 employees, 10-49, 50-249, 250+).
Higher values suggest a higher degree of sustainability in businesses. However, the indicator is based on declarations by companies and provides no information about their actual environmental performance.
No data are available for large companies for 2013.
Source: European Commission, Eurobarometer on SMEs, green markets and resource efficiency, 2021.
The table below provides details by action and company size.
| Q: What actions is your company undertaking to be more resource efficient? | ||||||
EU27 | Company size | |||||
EU27 | 1-9 | 10-49 | 50-249 | SMEs | 250 or more | |
| Saving water | 46% | 46% | 44% | 47% | 46% | 52% |
| Saving energy | 61% | 61% | 64% | 70% | 61% | 74% |
| Using predominantly renewable energy (e.g. including own production through solar panels, etc.) | 19% | 19% | 25% | 32% | 19% | 40% |
| Saving materials | 57% | 57% | 55% | 61% | 57% | 63% |
| Switching to greener suppliers of materials | 33% | 33% | 36% | 39% | 33% | 45% |
| Minimising waste | 64% | 65% | 63% | 70% | 64% | 75% |
| Selling your residues and waste to another company | 24% | 23% | 34% | 43% | 24% | 46% |
| Recycling, by reusing material or waste within the company | 47% | 47% | 46% | 51% | 47% | 51% |
| Designing products that are easier to maintain, repair or reuse | 26% | 26% | 27% | 28% | 26% | 30% |
| Other | 2% | 2% | 1% | 1% | 2% | 1% |
| None | 9% | 9% | 7% | 4% | 9% | 4% |
| Don't know/No answer | 2% | 2% | 1% | 1% | 2% | 2% |
SMEs that offer green products or services
This indicator measures the share of SMEs who responded “Yes” to the question “Does your company offer green products or services?”. Data are provided by company size (0-9 employees, 10-49, 50-249, 250+).
In 2021, 32% of SMEs offered green products or services. Medium-sized businesses were more likely to do so (38%) than micro-enterprises (31%).
Higher values suggest a higher degree of stainability in businesses. However, the indicator is based on declarations by companies and provides no information about their actual environmental performance.
No data are available for large companies for 2013.
Source: European Commission, Eurobarometer on SMEs, green markets and resource efficiency, 2021
The table below provides details by company size.
| Q: Does your company offer green products or services? | ||||||
EU27 | Company size | |||||
EU27 | 1-9 | 10-49 | 50-249 | SMEs | 250 or more | |
| Yes | 32% | 31% | 34% | 38% | 32% | 46% |
| No, but you are planning to do so in the next 2 years | 11% | 11% | 11% | 11% | 11% | 12% |
| No and you are not planning to do so | 54% | 54% | 51% | 46% | 54% | 38% |
| Don't know/No answer | 3% | 3% | 4% | 4% | 3% | 4% |
| Total 'No' | 65% | 66% | 62% | 58% | 65% | 50% |
Additional facts and figures
The EU Eco-Management and Audit Scheme (EMAS) is a premium management instrument developed by the Commission to enable companies and other organisations to evaluate, report on, and improve their environmental performance.
The EU Ecolabel is the official EU voluntary label for environmental excellence, awarded to sustainably designed products that help achieve the EU goal of climate neutrality by 2050 and environmental objectives (circular economy, biodiversity protection and zero pollution). EU Ecolabel products meet high standards that reduce their environmental impact throughout their life cycle, from raw material extraction, to production, use and disposal.
EMAS organisations and sites
This charts shows the number of organisations and sites that participate in EMAS.
By participating in EMAS, more organisations and sites commit to continuous improving their environmental performance, save energy and optimise the use of resources. Between 2021 and 2023, the number of organisations grew by 4%, reaching 4 039, and the number of sites grew by 7% reaching 12 847. This shows higher interest in balancing environmental responsibility with business success.
There are big differences among EU countries. In 2023 Italy ranks first (with 1 119 organisations and 4 596 sites participating in EMAS), followed by Germany (1 101 organisations and 2 346 sites), Spain (999 organisations and 1 188 sites) and Austria (280 organisations and 1 334 sites).
Source: EMAS national competent bodies.
EMAS leading sectors, 2023
The chart shows the leading sectors in terms of the number of organisations participating in EMAS in 2023. “Waste collection, treatment and disposal activities” is the leading sector with 610 EMAS organisations, followed by “Public administration and defence; compulsory social security” (317 organisations) and “Electricity, gas, steam and air conditioning supply” (290 organisations).
EU Ecolabel - products per product group, September 2023
The following chart shows the number of EU Ecolabel products awarded by product group.
By September 2023, 88 921 products (goods and services) had been awarded with the EU Ecolabel. This is a 17% increase compared with 2020 (75 796) - despite the COVID-19 crisis and the geopolitical context. Most product groups saw an increase, in particular indoor cleaning services, absorbent hygiene products and furniture. This shows the high interest in more eco-friendly products in the marketplace. Most EU Ecolabel products were awarded in Italy (16%), Spain (15%) and France (13%).
Source: EU Ecolabel national competent body.