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Sustainable Consumption and Production Poverty Alleviation and Climate Change Climate Change & the Challenge of Poverty Alleviation 26 - 28 July, 2012 Centre for Climate Change and Environment Advisory DR. MCR HRD Institute Campus, Hyderabad 27 July ‗12Dr. N. Sai Bhaskar Reddy,CEO, GEO http://e-geo.org
Sustainable consumption andproduction Distributed and interdependent innovation towards sustainability: systems of provision and consumption Sustainability AND growth versus sustainability as a restriction of consumption, localisation, etc. Collective and political choices – rather than individual moral or market choice ―Triangular affairs‖ (state and market actors, consumer organisations/groupings) – at least.
INTERLOCKING CHALLENGES AND CRISES―Peak petro- Global climate changechemicals‖ Socio-economic welfare Biodiversity Food crises Land use + water
What are we talking about? Consuming and producing more efficiently and differently ... … and sharing resources between the rich and the poor.
Global UN contextof SCP and resource use JPoI - Chapter II: Poverty Eradication Resource use contributing to MDGs JPoI - Chapter III: Sustainable Consumption and Production 10 year framework on SCP/ Marrakech Process/ CSD 2010-2011
The State of the Planet Issues of concern: An overview • Climate change • Freshwater scarcity • Biodiversity loss • Collapsing fisheries • Soil erosion • Cropland and forests loss • Increasing population • Growing waste • Growing consumption
The State of the Planet Resource Depletion - Freshwater Access to water is arguably the world‘s most urgent resource issue ◦ Every year about 5 million people die due to lack of access to water & sanitation ◦ Almost 30% of people live in countries suffering moderate-to-high water stress ◦ By 2025 more than 4 billion people will be living in water stressed countries Between 1900-1995 global freshwater consumption rose six-fold, more than double the population growth rate More than 20% of the worlds freshwater fish species have become extinct, threatened, or endangered in recent decades In 60% of the European cities with more than 100,000 people, groundwater is being used faster than it can be replenished
The State of the Planet Population Growth, Consumption and Production Population is not the main problem of environmental degradation, but rather consumption and production patterns There is a need to find an appropriate balance between: ◦ The basic needs of the current population (food, shelter, health, clothing) ◦ The needs of future generation ◦ This requires balancing inter- and intra-generation equity
The State of the Planet Unsustainable Consumption1000 people harm the environment annually by the following factor In Germany Developing Country Energy consumption (TJ) 158 22 Greenhouse gases (t) 13700 1300 CFCs (Kg) 450 16 Waste (t) 400 120 Toxic waste (T) 187 2 Passenger cars 443 6 Steel consumption 655 5
The State of the Planet Inequalities in Consumption• 1.3 billion people live on less than 1 US dollar a day• The overall consumption of the richest fifth of the world’s population is 16 times that of the poorest fifth• Nearly 160 million children are malnourished• More than 880 million people lack access to health services• 1.5 billion lack access to sanitation and clean water
The State of the Planet Unsustainable Consumption Global Consumer Class: Selected Nations (2002) Consumers Share of NationalCountry (millions) Population (%)United States 243 84Japan 121 95Germany 76 92Russian Federation 61 43Brazil 58 33China 240 19India 122 12
The State of the Planet Car Growth in China Year Private cars 1980 0 2000 5 million 2002 10 million 2003 14 million 2015 150 million (estimated)
The State of the Planet Consequences: Four Earths needed in 21001900 2003 2050 2100
Mixed messages from consumers… I’d like to end poverty, stop violence and racism, and get rid of pollution. Everyone should be equal. I want to dress in the nicest clothes, drive a great car, talk on the latest mobile phone, and watch my brand new DVD
The State of the Planet The need for increased resource efficiency ―20% of the world‘s population consumes 80% of its resources. If everyone consumed at this level, it would take four extra planets to provide the necessary resources. Global marketing of this consumer lifestyle is headed for natural disaster.‖ The Ecological Footprint“Resource use and pollutant discharge will need to decrease to less than 10% of current OECD levels to reach sustainable equilibrium by 2040.” Netherlands Council for Environment & Nature
The State of the Planet The implementation gap―Fundamental changes in the way societies produce andconsume are indispensable for achieving global sustainabledevelopment.All countries should promote sustainable consumption andproduction patterns...Governments, relevant international organizations, the privatesector and all major groups should play an active role inchanging unsustainable consumption and productionpatterns.‖ WSSD Johannesburg Plan of Implementation, Sept. 2002
The State of the Planet Factor Four improvements Business shifts for natural capitalism ◦ Dramatically increase resource productivity ◦ Eliminate the concept of waste: build on biologically inspired production models ◦ Re-investing in natural capital ◦ Re-invest in people and social
The State of the Planet Sustainable consumptionUnderstanding the interrelation between eco-efficiencyand sustainable consumption - the ―rebound effect‖◦ In terms of the ―rebound effect‖, the productivity/efficiency gains achieved through cleaner production and eco-efficiency measures are being overtaken by the overall increases in production associated with growing consumption patterns◦ While problems of production process are understood, there is generally an important gap of understanding in terms of the consumption (use) and disposal of products◦ Environmental concerns are not sufficiently integrated into economic and social programmes and vice versa
The State of the Planet The ChallengePromoting sustainable consumption and production• New product-oriented strategies (life cycle perspective, design and manufacture)• Understanding consumption• Integrated approach of sustainable consumption and production• De-linking environmental damage from economic growth
The State of the Planet There is noSustainable Consumption without Sustainable Production and vice versa
So what has been the responseof the corporate sector to theglobal environmental challenges?
Improvement in environmental quality Rethink Redesign Incremental change “Lowhanging fruit” Long investment time in R&D Time From Arthur D Little - Sustainable Industrial Development 1996
A Brief History of Corporate EnvironmentalismBroad Phases of Corporate Environmentalism ◦ Before the 1960s: Blissful Ignorance ◦ 1960s and 1970s: Confrontation / Reluctant Compliance ◦ 1980s: Beyond Compliance ◦ 1990s: Changing Course ◦ Beyond 2000: Sharing Responsibility?
Evolving Business Behaviour on Sustainability Issues
Evolving Business Behaviour on Sustainability Issues
A Brief History of Corporate Environmentalism 1960s and 1970s - Reluctant Compliance ◦ Growing public consciousness about the natural environment Publication in 1964 of Rachel Carson‘s ‗Silent Spring‘ 1970 Earth Day demonstrations Publication in 1972 of the Club of Rome‘s ‗Limits to Growth‘ and The Ecologist‘s ‗A Blueprint for Survival‘ 1972 Stockholm Conference on the Human Environment ◦ Businesses began: Building internal technical capacity on environmental issues Installing pollution control measures and initial networking But largely a defensive role Social activities focus mainly on philanthropy
A Brief History of Corporate Environmentalism 1980s – ―Beyond Compliance‖ ◦ Increasing pressure to improve performance: Major industrial incidents: Bhopal accident (India, 1984) and Sandoz chemical spill (Switzerland, 1986) Brundtland Report in 1987 put the concept of sustainable development squarely into the international policy arena ◦ Business began to: Develop environmental policies with specific performance commitments Appoint dedicated staff functions, and increase line management integration of environmental and social responsibilities Implement pollution prevention and cleaner production techniques Undertake greater networking with other companies on environmental and social issues (eg chemical industry‘s Responsible Care initiative) Develop tools such as environmental audits
A Brief History of Corporate Environmentalism 1990s – ―Changing Course‖ ◦ Increasing international policy action on environmental and sustainable development issues Rio Earth Summit in 1992 Growing number of Multilateral Environmental Agreements (eg the UN Framework Convention on Climate Change) ◦ Business response signified by institutionalisation and innovation Launch of the ICC Business Charter in 1991 Formation of World Business Council on Sustainable Development Development of ISO 14000 environmental standards Increase in environmental and social reporting practices Development of innovative technological solutions, as well as tools such as life cycle assessment, design for environment & product stewardship
A Brief History of Corporate Environmentalism Beyond 2000 – ―Walking the Talk‖? ◦ Key strategic trends impacting global companies Growing NGO and community pressure for greater corporate transparency and accountability Increasing activism of institutional investors and the financial community, compounded by post-Enron disenchantment with traditional analysis Tightening global and domestic regulatory pressures (eg the Kyoto protocol, European pension fund requirements) Increasing appreciation of the business case for sustainability and a gradually growing acceptance of the need to address sustainability concerns
Corporate Environmentalism: Strategic TrendsGrowing NGO and consumer pressure for accountability
Corporate Environmentalism: Strategic Trends Changing regulatory pressures Key developments globally – Growing number of Multilateral Environmental Agreements – International corporate accountability / MNC liability regimes – EU Chemicals policy (REACH) – EU Integrated Product Policy - LCA implications – Regulatory pressure for reporting – Environmental tax reform requirements – Personal / class action claims
Climate Change Litigation "What were seeing is an emerging area of climate litigation. As the impacts of climate change worsen, the number of potential plaintiffs, and the range of legal actions available to those plaintiffs will undoubtedly increase."International Product Liability Lawyer Australian – July 14 launch of Climate Justice Program, alliance of 70 NGOs, lawyers, academics and individuals in 29 countries that seeks enforcement of existing laws to hold the perpetrators of climate damage accountable and liable.Australia – Climate Action Network Australia notified directors of the top 200 listed companies of financial risks and legal obligations of climate change. Targeted major GHG emitters, as well as property financiers. Companies expected to respond by undertaking risk assessment of climate change exposure.USA – Eight US States and New York City launched a public nuisance lawsuit against five of the US’s largest power companies – 21 July 2004.
Corporate Environmentalism: Strategic TrendsIndicators of the next wave of corporate responsibility ◦ Sustainability reports ◦ Strategic partnerships ◦ Participation of financial markets ◦ Academia and education ◦ Media
Corporate Environmentalism: Strategic Trends Corporations in the next society?“In the next society, the biggest challenge for thelarge company - especially for the multinational -may be its social legitimacy: its values, its missions,its vision.” Peter Drucker
Corporate Sustainability: An ideal company? Corporate Sustainability: Features of an ideal company? ◦ Integrates environmental and social issues into its core strategy ◦ Quantifies the social and environmental costs of its activities ◦ Displays innovation throughout the full life cycle of its products and services ◦ Implements sound corporate governance practices ◦ Is committed to transparency and accountability ◦ Promotes meaningful change amongst its peers, within its neighbouring communities, and throughout its supply chain
Resource Efficiency defined… Efficiency at economic level + Environmental dimension = Resource Efficiency (RE) (materials, energy, water, land & emissions) Reducing the environmental impact of consumption and production of goods and services over their full life cycles By producing more wellbeing with less material consumption, RE enhances the means to meet human needs while respecting the ecological carrying capacity of the Earth. Resource Productivity: having more value creation per resource unit (similar to Labour Productivity) – innovation needs to directed in that direction
and global value chains ? Disposal Use Recycling Reuse Production Resources ? Resource Extraction ? EmissionsMeeting the sustainability challenge can present businesses with tremendousopportunities. As we look at ways to address issues of sustainability, newbusiness models will emerge that will help businesses achieve more successin a resource-constrained world with more stringent stakeholderexpectations.
International and nationalinitiatives on resource use OECD has developed a programme on Material Flows and Resource Productivity G8 countries, spearheaded by Japan are implementing the Kobe action plan of the ‘3R’ initiative aimed at reducing, reusing and recycling resources. European Commission has launched its Thematic Strategy on the Sustainable Use of Natural Resources. In addition, there are numerous national strategies aimed at closing the loop, including China’s circular economy approach.
Global scientific activitiesin relation to resource use IPCC – Climate Change due to fossil fuels Impacts due to use of other resources than fossil fuels? Millennium Ecosystem Assessment Linkages from observed impacts on ecosystems to unsustainable resource use?
Focus on selected non fossil material flows … Decoupling and Resource -efficiency Consumption and productioninduced material flowsRenewable resources Flow resources Non-renewable resourcesFood Non- Food Air, Soil, Sun, Water Minerals Fossil and Metals Fuels Biofuels Global (vs. fossil Freshwater Metal fuels) Flows
…and their environmentalimpact … Source: Adapted from N&M
Achievements Mainstreaming of the Resource Panel: • Identified substantive issues through scientific consultation • Governmental and Civil Society support secured • 26 eminent multidisciplinary scientific experts on board • Working procedures (ToRs, peer review, member selection) • Work plan of the Panel (Reviewed at biannual meetings) • Four Assessment Reports underway. International cooperation • OECD-UNEP Conference on Resource Efficiency • Recognised by the G8 Environment Ministers in Kobe Action Plan. • World Resource Form (lead up to World Economic Forum 2010) UNEP • Governing Council Side Event (Marrakech Process, Green Economy) • Initiated Interdivisional Task Team in UNEP Information dissemination at various Global fora
Data for LCAThree sources: Industry data (provided by companies and industry associations) Unit process data (modeling of resource requirements based on information on technologies used) Data derived from Input-Output tablesUNEP/ SETAC Database registry: Aiming at being a focal point for information about international, sectoral, national, commercial and non commercial databases worldwide User survey (autumn 2008) showed that the database registry concept meets the needs of many users. Addressing different data sources in general, among those the ELCD/ ILCD system, Japanese LCA database, and many others, including I/O data.
Impact Assessmentindicators and methods Resource Other Env. Efficiency PrioritiesEnergy Energy Climate CarbonDemand Change Footprint(IEA) (WRI/ WBCSD, ISO)Water Water Hazardous USEtoxFootprint Substances (SETAC)(WWF/ WFN)Material Materials Ecosystems BiodiversityIntensity Biodiversity Damage(WI) (IUCN)
REEO: Resource Efficiency andEconomics Outlooks I Project ongoing for following regions: ◦ Asia Pacific ◦ Latin America and the Carribean: Mercosur and Mexico Objective of reports: ◦ Give convincing evidence to decision makers that ―Resource Efficiency‖ policies and measures are really needed to support sustainable economic development. To do this, each report should explain first the concept of resource efficiency, the related policy decision making and then give an overview of the resource efficiency challenges in the region.
REEO: Resource Efficiency andEconomics Outlooks II Outline: ◦ Resource Efficiency and Economics—What is It? Why is It Important? And how to assess it? (at the macro-, meso- and micro-level) ◦ Assessment and Trends of Resource Efficiency and Economics in the Region (materials, energy, water, land, emissions) ◦ Fostering Resource Efficiency and Economics in the Region (investments) ◦ Policy relevant conclusions for the implementation of Resource Efficiency at the national level in the Region (targets, monitoring, policy instruments) ◦ The Role of Regional and International Initiatives ◦ Perspectives (win-win solutions)
UNEP Resource Efficiency andProductivity Data Scoping Workshop Support the science base of UNEPs work on resource efficiency by ◦ establishing access to relevant databases, ◦ contributing to the inclusion of relevant data in the GEO Data Portal ◦ building capacity in developing countries on the collection of relevant data ◦ Influencing processes such as UNCEEA so that adequate ‗raw‘ data for Resource Efficiency and Productivity are collected
Towards an International virtual datacentre on Resource Intensity The establishment of an international virtual data centre on the resource intensity of products and services is urgently needed, ◦ to monitor the success of strategies and measures to increase resource productivity, on the macro- economic level and the level of companies and product-service-systems including the customers and consumers activities. ◦ to satisfy increasing demand by policy-makers, businesses and consumers on consistent and validated data ◦ to enable directionally-safe decision-making towards a more sustainable development Compatibility and integration with other key indicators for life-cycle wide assessments, such as those mentioned above.
Perspectives for the future:Consumption, products and resources
What could be possible in thefuture? Problem analysis:–What are priority consumption activities, products, production processes and resource uses?–What is the relation between consumption, production, and resource use? What drives what? –What are differences in labour, capital, resource and ‗emission‘ productivity between countries? Monitoring : What factors caused decoupling of impacts and economic activity in the past? needs time series Foresight and scenario analysis: How will the future look like? needs dynamic models linked to database