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North Rhine-Westphalia Green Economy Report 2024

Client

Ministry of the Environment, Nature and Transport for North Rhine-Westphalia

Year

2024

Partner

Institute for Ecological Economic Research


The North Rhine-Westphalian green economy has been experiencing a boost in growth since 2020. Between 2020 and 2023, the annual gross value added in the sector rose by 9.2 billion euros to almost 52.8 billion euros in total. The number of people in employment increased by 21,600 over the same period and now stands at around 599,000 people.

The North Rhine-Westphalia Green Economy Report will be published for the fifth time this year. On behalf of the State Environment Ministry, the economic and ecological importance of the green economy, its development and technological priorities as well as its international positioning were identified.

Driving force with ecological impact

In North Rhine-Westphalia, the environmental industry not only makes an economic contribution to society, but also a significant ecological contribution. The Green Economy Report estimates the performance of the green economy in North Rhine-Westphalia in 2023 as follows:

  • Economic value added: 52.8 billion euros
  • Ecological value added (for example, the recovery of important resources through recycling or the preservation of natural landscapes and biodiversity): 9.3 billion euros
  • Avoidance of environmental damage (avoided greenhouse gas and pollutant emissions): 19.6 billion euros

The overall ecological performance of the green economy is based on the combined avoided environmental costs and the ecological added value, which amounted to 28.9 billion euros in 2023.

The economic balance sheet is shaped by the large sub-markets

  • "Materials, Material Efficiency and Resource Management" (2023: 16.9 billion euros gross value added, employing 192,000 people),
  • "Environmentally friendly mobility" (2023: 8.6 billion euros gross value added, employing 130,000 people) and
  • "Energy Efficiency and Energy Savings" (2023: 8.2 billion euros gross value added, employing 92,000 people).

With 599,000 people in total, the green economy in 2023 comprised more employees than the metal industry and mechanical engineering in North Rhine-Westphalia combined.

Actors from North Rhine-Westphalia are engaged in some of the most important innovation topics for transformation. The report highlights outstanding innovation projects in the areas of the circular economy and water management, but also in mitigation and protection technologies. The focus of innovation is on the recycling of batteries and wind and photovoltaic systems.

Reporting and monitoring system

North Rhine-Westphalia was the first federal state to adopt its own interdisciplinary environmental strategy, which it has been pursuing since 2010. With the Green Economy Report, the State has established a reporting and monitoring system that can be used to assess the economic importance of the green economy.
The Green Economy Report also serves as a starting point for environmental and economic policy measures, as well as a benchmark for measuring exactly how successful they are.

Our approach

The official classification by economic activity and product group does not include the green economy within its classification. So, in order to assess its economic significance empirically, a statistical delimitation of economic activities and products was therefore necessary. Our criteria stipulated that the activities and products had to have a direct environmental benefit, an effect as an environmentally friendly substitute or a supporting value-added or climate adaptation function. If a product, process or service meets one of these criteria, it is considered part of the green economy.

We used our envigos model for the analysis. The parameters were distinguished in terms of sub-markets, market segments and the specific technology areas of the environmental sector. We also examined the regional characteristics of this cross-sectional industry in the nine economic regions of North Rhine-Westphalia.

To give an indication of the innovation performance of the green economy, the patent applications of companies based in North Rhine-Westphalian were analysed.

Links and downloads

To the Green Economy Report 2024 (website in German, State Government of NRW)

Impetus for the Green Economy 2023 (in German)

Green Economy Report 2022 (in German)

Further information on the Green Economy Report (in German)

Project team: Tim Bichlmeier, Philipp Hutzenthaler, Jannis Lambert, Oliver Lühr, Robert Norpoth, Michelle Reuter, Katharina Wilkskamp, Vera Wechner

Latest update: 07.11.2024

Do you have questions?

Your contact at Prognos

Jannis Lambert

Principal

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Oliver Lühr

Partner, Head of Environmental, Circular Economy & Climate Change

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