ETV as the key to commercializing innovative environmental technologies, or how to avoid greenwashing

Innovative environmental technologies represent an opportunity to address the pressing environmental challenges facing Europe and the world. However, their degree of commercialization and application in the economy remains surprisingly low despite market needs and growing demand. The reason for this may be the threefold risk of market failure: risks associated with the implementation of environmental technology, risks associated with the implementation of innovation, and risks associated with the return on investment. Mitigation of these risks by technology developers and suppliers is a difficult challenge, requiring additional tools. The ETV environmental technology verification system, based on ISO 14034, can help.

The climate and environmental challenges we face, combined with the ambitious targets to be achieved set by the European Union, require the use of innovative environmental technologies. Without innovation, achieving climate neutrality, reducing the use of natural resources and transitioning to a closed-loop economy will not be possible.

So-called green companies are increasingly gaining a better foothold in the market due to growing demand for sustainable products, regulatory support, operational efficiency and thus better profitability and reputation among customers. They are also characterized by increased resilience to risks associated with climate change and commodity price fluctuations, and the application of technological innovations that help open up new business opportunities. Unfortunately, this green trend, without proper care, can pave the way for greenwashing. How to guard against it?

Green innovations - yes, but with proven performance

Conventional technologies with proven effects still seem to inspire more business confidence than green innovations. The reasons for this can be found in the inadequate information with which suppliers of new environmental technologies reach buyers, users, investors, policymakers and regulators. The lack of data, particularly regarding the technology's actual performance, its effectiveness in reducing negative environmental impacts, compliance with regulations and return-on-investment prospects, causes potential buyers to consider the innovation too risky and ultimately opt for another solution.

Even the best innovative technology, despite its promising potential to improve environmental performance, can fail in the marketplace if there is no solid, objective evidence of its effectiveness. Risk-averse industries, whose processes and operations are subject to strict standards and regulations, are particularly reluctant to adopt new technologies without reliable evidence.

Therefore, marketing of green innovations must include not only communication of the benefits of the innovation, but also credible justification of its effects and resulting savings (including environmental savings). This is where technology verification becomes crucial, which can be provided by an ETV system based on ISO14034. ETV, through rigorous quality control and with the involvement of independent, accredited verification bodies, confirms that claims of the effect of new environmental technologies are truthful and supported by reliable test results. It thus provides market-relevant evidence, helping to reduce the risks associated with commercializing a new environmental technology in the market. ETV provides confirmation that an innovation works under real-world conditions, provides environmental benefits and also provides the necessary data that can prove crucial in decisions to apply or finance a solution, e.g. through the ability to compare tested technology performance indicators.

Who will benefit from ETV?

ETV benefits all stakeholders: customers/users who receive verified information on technology performance, technology developers/suppliers who gain market credibility by reducing the risk of market failure, investors/financial institutions who obtain reliable information on green financing and return on investment, and decision makers who support the implementation of new solutions to achieve environmental goals.

The ETV process, conducted in accordance with ISO 14034 standards, involves comprehensive verification of the declaration of the effect of an action through accredited bodies, ensuring the highest standards of control and quality. The result of the verification is a publicly available verification certificate that transparently presents the verified performance effect parameters necessary for market acceptance of an innovative environmental technology.

ETV: how does it work?

The verification process for such technologies may seem complicated, but its rigorousness is essential to ensure the highest standards of control and adequate quality. The verification procedures follow the internationally recognized technical standard “ISO 14034: Environmental Management: Verification of Environmental Technologies (ETV)” (ISO, 2016), which was adopted as a European standard in 2019. The standard represents a global consensus on how to verify the performance claims of new environmental technologies, whether they are processes, products or services for industrial applications.

Verification is carried out by accredited bodies (known as verification bodies). The process begins with the submission of an application to them. The main element of such an application is a declaration of the effect of the technology, including, in particular, those technical parameters of the solution that relate to its unique features, supported by test data aimed at confirming the market readiness of the solution. The declaration must be presented in a way that allows verification through measurements and tests. In addition, information is required on the reduced environmental impact of the technology compared to conventional, commonly used solutions, so as to demonstrate the environmental added value of the innovation.

Based on this information, the verification unit determines whether the technology qualifies for ETV. If so, the unit works with the applicant to agree on the parameters to be verified to validate the declaration. A verification plan is then developed, describing in detail how the declared effect will be verified, including methods and conditions for testing the various parameters.

Once the protocol is finalized and agreed upon, the verification body analyzes the submitted test data on the technology's performance effect to ensure that it works as intended. If the existing test data meets the requirements specified in the verification plan, it can be used. Otherwise, the applicant must commission the necessary tests from an independent testing unit.

The body then prepares a verification report summarizing the process and issues a certificate. The process ends with the publication of the certificate on a dedicated website (e.g., the verification body's website), making it publicly available.

LIFEproETV project

LIFEproETV aims to strengthen the acceptance and recognition of ETV in the market. By building a strong ETV brand, the project supports the deployment of innovative environmental technologies that are key factors in Europe's green transformation and build its competitive position in the global market.

The project is being implemented under the European LIFE program with co-financing from the National Environmental Protection and Water Management Fund and the Hungarian Ministry of Agriculture. An international consortium comprising the Institute for Ecology of Industrialized Areas (accredited ETV verifier), the Institute for Environmental Protection - National Research Institute, the national research and development agency ENEA (Italy), the ZAG - Zavod za gradbeni?tvo Slovenije (Slovenia), ETA-DANMARK (accredited ETV verifier, Denmark), K?VET Association (association for sustainable enterprises, Hungary), Cetaqua - Water Technology Centre (center for research, development and testing of water and wastewater technologies, Spain) is responsible for implementation.

More information about the project: https://lifeproetv.eu/

More information about ETV: https://etv-hub.eu/