For people’s living conditions to improve, economies need to develop. In developing countries, in particular, environmental damage generated by industry has become an impediment to growth. It is estimated that the resultant costs have already reached 4-8 percent of GDP. Eco-efficiency seeks to reverse this trend by fostering economic development while safeguarding natural life-support systems.

One example: In Asia, use of efficient ceramic kilns has snowballed. Within just a few years, GIZ (former GTZ) advisory inputs have helped establish a sustainable business concept for small and medium-sized enterprises (SMEs). This has been done by training kiln-makers and other service providers, and creating economic incentive systems. By optimising the function and design of kilns, greenhouse gas emissions have been cut by 70 percent and energy costs by 50 percent. At the same time, product quality has been improved and rejects reduced to 5 percent. This has given more than 2,500 firms access to the export market, and has safeguarded the incomes of workers, 90 percent of whom are women.