Trends in Sustainable Consumption and Production
Transcript of Trends in Sustainable Consumption and Production
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TRENDSINSUSTAINABLE DEVELOPMENT
E c o n o m i c &
S
o
c
ia
lA
ffa
irs
TOWARDS SUSTAINABLE
CONSUMPTION AND PRODUCTION
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Department o Economic and Social AairsDivision or Sustainable Development
TRENDSIN SUSTAINABLE DEVELOPMENT
Towards Sustainable Consumption
and Production
United Nations
New York, 2010
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DESA
The Department o Economic and Social Aairs o the United Nations Secretariat is a vital interace between global policies in the
economic, social and environmental spheres and national action. The Department works in three main interlinked areas: (i) it com-
piles, generates and analyses a wide range o economic, social and environmental data and inormation on which Member States
o the United Nations draw to review common problems and to take stock o policy options; (ii) it acilitates the negotiations o
Member States in many intergovernmental bodies on joint courses o action to address ongoing or emerging global challenges;and (iii) it advises interested Governments on the ways and means o translating policy rameworks developed in United Nations
conerences and summits into programmes at the country level and, through technical assistance, helps build national capacities.
Note
The designations employed and the presentation o the material in this publication do not imply the expression o any opin-
ion whatsoever on the part o the Secretariat o the United Nations concerning the legal status o any country or territory or
o its authorities, or concerning the delimitations o its rontiers. The term country as used in the text o the present report
also reers, as appropriate, to territories or areas. The designations o country groups in the text and the tables are intended
solely or statistical or analytical convenience and do not necessarily express a judgment about the stage reached by a par-ticular country or area in the development process. Mention o the names o rms and commercial products does not imply
the endorsement o the United Nations.
United Nations publication
Copyright United Nations, 2010
All rights reserved
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INTRODUCTION
FOREWORD
The Johannesburg Plan o Implementation reers to sustainable consumption and production (SCP), along with poverty eradica-tion and conservation o the natural resource base, as essential precondition or sustainable development. The idea o sustainable
development contains within it the completion o three transitions: demographic, development, and decoupling. The demo-
graphic transition is at a mature stage and global population will level o around 9 billion later this century, and the share o urban
population will expand briskly, especially in developing countries.
The development transition is ar rom complete. It reers to the time when the gains rom development would reach all coun-
tries, and the consequent prosperity would be shared broadly. Currently, while the 15 per cent o the worlds population that lives
in developed countries has an average per capita income above $40,000, the 80 per cent in developing countries average income
o less than $2,000 per capita. This is also refected in the wide dispersion o human development indicators as well as per capita
energy consumption.The decoupling transition is also problematic. Already, the consumption patterns o the developed countries have imposed
severe stresses on the earths natural resources and largely lled its natural sinks. I the development transition were to ollow the
same consumption and production patterns, pressures on critical ecosystems and lie-support systems would become intolerable.
Thus, a key challenge acing the international community is how to sustain and even accelerate the development transition while
also realizing the decoupling transition. An energy transition is also crucial, combining energy access or the poor with diusion
o renewable energy.
In short, we must nd pathways which simultaneously achieve upward convergence o living standards (completing the devel-
opment transition) and downward convergence o resource use and environmental impacts (the decoupling transition).
This volume reviews progress towards achieving these interlinked challenges, ocusing rst on broad trends in resource use,then turning to drivers o resource depletion and environmental degradation, and nally examining the major initiatives o gov-
ernments, business and civil society to shit towards sustainable consumption and production patterns.
Tariq Banuri, Director
Division for Sustainable Development
Department of Economic and Social Affairs
April 2010
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PAGE
CONTENTS
FOREWORD iii
I. TRENDS IN RESOURCE USE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
II. STRESSES ON ECOSYSTEMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
III. DRIVERS OF CHANGING PRODUCTION
AND CONSUMPTION PATTERNS . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
IV. POLICY AND VOLUNTARY RESPONSES . . . . . . . . . . . . . . . . . 13
V. NEW TECHNOLOGIES AND FINANCE . . . . . . . . . . . . . . . . . . . . 29
REFERENCES AND ENDNOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
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TRENDS IN RESOURCE USE
The accelerating materials and ossil energy demand o the past decade-
and-a-hal has begun to be refected in commodity prices. Beore the
recent recession, most were spiraling upward. While a boon or resource-
rich economies, the prices rises have been a bane or many resource- poor
countries, which have been particularly hard it by high ood prices.
Source: IMF, 2010
World commodity price index
2005 = 100
0
50
100
150
200
250
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Commodity Food Price Index includes Cereal, Vegetable Oils, Meat, Seafood, Sugar, Bananas,and Oranges Price Indices
Commodity Cereals Price Index includes Wheat, Maize (Corn), Rice, and Barley
Commodity Agricultural Raw Materials Index includes Timber, Cotton, Wool, Rubber, and Hides Price Indices
Commodity Metals Price Index includes Copper, Aluminum, Iron Ore, Tin, Nickel, Zinc, Lead,and Uranium Price Indices
Fundamental changes inthe way societies produce and consume
are indispensable or achieving globalsustainable developmentGovernments,
relevant international organizations,
the private sector and all major groupsshould play an active role in changing
unsustainable consumption andproduction patterns.
Johannesburg Plan of Implementation 2002, III
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GENERAL TRENDS
Recent research published in the journal Nature denes, or eight earth bio-
physical subsystems or processes, sae threshold boundaries that should
not be exceeded to avoid major environmental disruptions. Already several
thresholds appear to have been exceeded, including: climate change (as
measured by excess CO2 concentration in the atmosphere); the rate o bio-
diversity loss (terrestrial and marine); and intererence with the nitrogen cycle
(N2 is removed rom the atmosphere and converted to reactive nitrogen or
human use mainly or agriculture). Intererence with the global phosphorous
cycle, ocean acidication, global reshwater use, and change in land use are
approaching their thresholds. No boundaries have yet been established or
chemical pollution and atmospheric aerosol loading. Stratospheric ozonedepletion is a noteworthy exception, where international environmental
cooperation has yielded progress in reversing a negative trend.
Earths biophysical subsystems or processesand their safe threshold boundaries
II. STRESSES ON
ECOSYSTEMS
STRESSES ON ECOSYSTEMS
CLIMATE CHANGE
CO2 emissions have been rising steadily: Since 1751 approximately 329
billion tons o carbon have been released to the atmosphere rom the con-
sumption o ossil uels and cement production. Hal o these emissions
have occurred since the mid 1970s.
Source: Rockstrom J. et al., 2009. Source: Boden et al, 2009.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,0008,000
9,000
1751
1760
1769
1778
1787
1796
1805
1814
1823
1832
1841
1850
1859
1868
1877
1886
1895
1904
1913
1922
1931
1940
1949
1958
1967
1976
1985
1994
2003
Total carbon emissions from fossil-fuels Carbon emissions from gas fuel consumption
Carbon emissions from liquid fuel consumption Carbon emissions from solid fuel consumptionCarbon emissions from cement production
millionmetrictonsofC
Carbon emissions from fossil-fuels, 17512006
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STRESSES ON ECOSYSTEMS
Numberofthreate
nedspecies
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1996/1998 2000 2002 2003 2004 2006 2007 2008 2009 2010
Vertebrates Invertebrates Plants Fungi & Protists
Numbers of threatened species bymajor groups of organisms
Thousandsoftonnes
0
20,000
40,000
60,000
80,000
100,000
120,000
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Consumption of nitrogenous fertilizers(N total nutrients)
Biodiversity is highly correlated to the number and health o ecosystems.
Vertebrates have been the most aected, with 10% o species threatened,
ollowed by plant species with 3%.
INTERFERENCE WITH NITROGEN CYCLE
Nitrogen is needed to grow ood but because o the ineciencies o nitro-
gen uptake by plants and animals, only about 10 to 15 percent o reactive
nitrogen is taken up. The rest is lost to the environment and injected into
the atmosphere by combustion. This nitrogen pollutes water sources and
the worlds oceans, harming marine ecosystems, and contributes to global
warming. Agricultural runo and the burning o ossil uels have boosted
the supply o reactive nitrogen in the open oceans 50 percent above the
normal range.3
Roughly our times more nitrogen ertilizer was applied in 2000 than in
1960, and applications have increased steadily since then. This has led toincreased deposition and change in the N cycle in various ecosystems. Evi-
dence suggests very high application rates contribute to soil degradation. 4
THE RATE OF BIODIVERSITY LOSS
The Millennium Ecosystem Assessment evaluated the ability o ecosys-
tems to provide ecosystem services such as the provision o goods (e.g.
ood, water, bre and uel), the regulation o natural systems (e.g. climate,
water and disease), cultural benets (e.g. aesthetics, spiritual, recreation
and education), and other supporting benets (e.g. primary production
and soil ormation). The assessment concludes that humans have changed
ecosystems in unprecedented ways over the last 50 years. Sixty percent o
the world ecosystem services have been degraded, which is putting such
strain on the natural unctions o Earth that the ability o the planets eco-
systems to sustain uture generations can no longer be taken or granted.2The International Assessment on Agricultural Knowledge, Science and
Technology or Development (IAASTD) nds that inappropriate ertilizer
application has led to eutrophication and large dead zones in a number
o coastal areas and some lakes, and inappropriate use o pesticides has
led to groundwater pollution and loss o biodiversity. In addition, 1.9 bil-
lion hectares (and 2.6 billion people) are aected by signicant levels o
land degradation. The area o drylands has been growing steeply since
the 1980s as a share o total land area. Very degraded soils are ound espe-
cially in semi-arid areas, areas with high population pressure and in regions
that are undergoing deorestation.
Source: IUCN, 2010.
Source: FAO, 2010.
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STRESSES ON ECOSYSTEMS
Estimated total reactive nitrogen deposition rom theatmosphere (wet and dry) in 1860, early 1990s,
and projected or 2050
Source: UNEP/GRID-
Arendal, 2005
ECOLOGICAL FOOTPRINT
Ecological Footprint analysis which compares humanitys ecological
impacts to the amount o biologically productive land and sea available
to supply key ecosystem services (ood supply, bre, habitat, carbon stor-
age, etc.) nds that the global economy started exceeding the planets
biocapacity in the 1980s, and overconsumption o resources has increased
since then.
The single largest demand humanity puts on the biosphere is its carbon
ootprint, which has increased tenold since 1961. The Ecological Footprint
exceeds the earth capacity to regenerate by 30%. Alternatively, 1.3 plan-
ets would be needed to stay within the planets carrying capacity.5 This is
another, simplied way o picturing planetary boundaries and ecosystem
thresholds.
Under a business-as-usual scenario, 2 planets would be required by 2030 to
support the worlds population. This assumes a continued unequal world
with 15% o the population using 50% o the resources. World WildlieFund (WWF) estimates that three planets would be needed now i every
citizen adopted the UK liestyle, and ve planets i they adopted the aver-
age North American liestyle.
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STRESSES ON ECOSYSTEMS
9.2
4.7
3.5
2.4 2.3
1.6 1.4
6.5
2.3
5.8
4.8
1.30.8
1.8
0
1
2
3
4
5
6
7
8
9
10
NORTHAMERICA
EUROPE(EU)
EUROPE(NON-EU)
LATIN AMERICAAND THE
CARIBBEAN
MIDDLE EASTAND CENTRAL
ASIA
ASIA-PACIFIC AFRICA
Ecological footprint
Biocapacity
Globalhectares
perperso
n
Biocapacity and ecological footprint per capita,by region in 2005
Regional dierences are driven by dierences in geography and climate,
liestyle, afuence, population and technological sophistication. At the
regional and national level, a comparison o ecological ootprints with bio-
capacity indicates whether countries and regions live within their biologi-
cal carrying capacity (or import such capacity rom the rest o the world).
The net balance o a countrys ootprint depends on its consumption com-
pared to its biocapacity per capita.5 Russia, Canada, the United States,
Brazil, Australia, India, and Argentina have the largest biocapacity. Three
o these have ecological ootprints that exceed their biocapacity because
o large population (China and India) or high consumption per capita (theUS). Countries exceeding their biocapacity went rom none in 1960 to
24 countries at present. North America, with the largest biocapacity per
capita, still exceeds its biocapacity, while Arica with a relatively small bio-
capacity per capita and 902 million people has a biocapacity reserve.
Source: WWF, 2008.
As ecological reserves becomeincreasingly rare, it will become critical... to orge new relationships and move
toward policies that protect natural assetswhile improving health and well-being. Inthis game, everyone can win. Every single
person will benet rom early action.
Mathis Wackernagel,
Executive Director of Global Footprint Network.
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STRESSES ON ECOSYSTEMS
0
1.00
2.00
3.00
4.00
5.00
6.00
0 50 100 150 200 250 300
Nitratespollutioninrivers2004(mgN/L)
Consumption of nitrogenous fertilizers per hectare of arable land (Kg per ha)
Netherlands
Korea
Belgium
Luxembourg
FranceUK
Denmark
Germany
Ireland
Czech Republic
Norway
Switzerland
Canada
SwedenMexico
SpainItaly
Poland
Austria
The intensity of nutrient used and the pollutionof rivers in OECD countries
(annual mean concentrations, 19802004)
Average national water ootprint per capita (2007)
Source: Hoekstra, A.Y. & Chapagain, A.K., 2007. Source: OECD, 2010
You cant have sustainability i youare eating capital. Today we are
consuming our natural capital.
Pavan Sukhdev, study leader for the project onThe Economics of Ecosystems and Biodiversity and the
UNEP Green Economy Initiative
o the internal and external water ootprint. Internal ootprint reers to the
appropriation o domestic water resources and external ootprint to the
appropriation o water resources in other countries.
Worldwide, 27 countries have an external water ootprint which accounts
or more than 50 per cent o their total water consumption, that is, they
depend heavily on water-embodied trade (or virtual water trade).
Major rivers and lakes, which serve as sources o drinking water, are increas-
ingly polluted rom both industrial and agricultural sources, including nitro-
gen. Generally, river pollution increases with nitrogen use intensity, though
with considerable dispersion.
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> DRIVERS OF CHANGING PRODUCTION AND CONSUMPTION PATTERNS
III. DRIVERS OF
CHANGING
PRODUCTION AND
CONSUMPTIONPATTERNS
Though there are controversies around the way pressures on the planets
resources are measured, the message that consistently emerges is that the
global economy is consuming resources at increasing and unsustainablerates. While substitution and new technologies can temporarily relieve
resource pressures, the scale o use o nite resources continues to rise.
Delinking, or decoupling, reers to weakening or breaking the link between
growth o economic activity and growth o consumption o materials, ossil
uels or energy and waste.
Delinking has occurred or some local environmental indicators, as rising
incomes have been accompanied by improvements in access to clean
drinking water and sanitation and some improvement in local and regional
air quality. This has not been the case or other measures like waste gen-eration, resource extraction and emissions o greenhouse gases. Even
where delinking occurs it is in part the result o shiting resource extrac-
tion and production to other countries, including developing countries, as
opposed to changes in patterns o consumption.
Growth in population, income and wealth over the next 40 years is
expected to put increasing pressure on resources. Even i energy intensi-
ties o GDP continue to all, the absolute levels o energy consumption are
expected to continue rising and, without a major shit towards low-carbon
energy, so too are CO2 emissions.
Countries would appear to ace a dilemma, as progress in human develop-
ment (as measured by UNDPs HDI) is positively correlated with a countrysecological ootprint. Few countries all into the sustainable development
quadrant o gure on the next page. The diagram illustrates well the
notion o a dual convergence: in living standards (as those countries in the
lower let quadrant would rapidly move to the lower right), and in environ-
mental impacts (as those countries in the upper right quadrant would also
move rapidly to the lower right).
The essential challenge acing humankind is to raise living standards and
human development everywhere and or all while keeping within ecosys-
tems carrying capacities.
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> DRIVERS OF CHANGING PRODUCTION AND CONSUMPTION PATTERNS
EcologicalFootprint(globalhectaares
perperson)
0
2
4
6
8
10
12
0 0.1 0.2 0 .3 0.4 0 .5 0.6 0 .7 0.8 0 .9 1.0Human Development Index
1.8 global hectares per personGlobal average availablebiocapacity per person with noarea set aside for wild species
Threshold for highhuman development
SustainableDevelopmentquadrant
Human Development Index andEcological footprint of nations
AFFLUENCE
High-income countries have been characterized by a steady increase in
the average per-person Ecological Footprint, rom 3.5 global hectares in
the early 1960s to roughly 6 global hectares at present.
As emerging economies become more afuent, the size o the global mid-
dle class is expected to increase, rom ewer than hal a million in 1960 to
4 billion in 2030. The largest number will live in China and India. Residentialwater and energy use, car ownership, personal travel, ood notably meat
and dairy consumption, and waste generation all increase with income.6
Moreover, consumption o some goods e.g. consumer durables like
automobiles can increase very rapidly once middle class incomes pass a
certain threshold. Car ownership plotted against per capita income shows
a non-linear relationship. Ownership rates are usually minimal in the low-
est income countries (clustered near the origin), but increase rapidly as
per capita incomes rise above a threshold (around $10,000 per capita at
purchasing power parity exchange rates).
Both energy consumption in general and oil consumption in particular rise
with incomes. A number o the countries with the astest GDP growth since
1980 also experienced rapid growth in energy use. This is not always the
case, however. A ew countries (or example Philippines, Bangladesh and
Austria) had GDP growth per capita which was much aster than growth in
per capita energy consumption.
Source: Global Footprint Network, 2008 and UNDP, 2008.
0
1.00
2.00
3.00
4.00
5.00
6.00
7.00
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
Globalhectaresperperson
Built Up Land
Forest
Fishing Ground
Grazing Land
Cropland
Carbon Uptake Land
High income countries ecological footprintper person, 19612006
Source: Global ootprint network, 2009.
Without a undamental shit in the way goodsand resources are consumed, the world
aces the prospect o multiple, interlockingglobal crises or the environment, prosperity
and security. Sustainable consumption is aprerequisite or a more prosperous, sae and
equitable global uture.
World Economic Forum
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> DRIVERS OF CHANGING PRODUCTION AND CONSUMPTION PATTERNS
1,000
10,000
100,000
0 100 200 300 400 500 600 700GDPpercapita,
PPPs(c
onstant2005intl$s)
Passenger cars per 1000
Luxembourg
Iceland
Italy
New Zealand
Brunei
Estonia
United States
MaltaSolvenia
Singapore
Botswana
Slovak Republic
Macao
Passenger cars and GDP (2004)
100
1,000
10,000
100,000
0 500 1,000 1,500 2,000 2,500 3,000 3,500
GDPpercapita(20
00constant$)
Oil consumption per capita (toe)
Norway
U.S.Iceland
Canada
Cyprus
Japan
Brazil
China
Finland
Germany
India
Italy
South Africa
Switzerland
United Kingdom
Relationship between per capita incomeand oil consumption (2005)
Millions of people
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
World
World (excluding China and India)
China
India
People with Incomes between$6,000 and $30,000 2008
Projected population that enters the middle classes
Source: Goldman Sachs, 2008.
Source: IEA, 2007.
Source: World Bank, 2009.
Also noteworthy is that or higher income levels there is a very wide range
in car ownership per 1000 inhabitants, rom the very high rates o Italy
and New Zealand to the very low rate o Singapore. Size matters (to some
degree) but so does government transport policy. Singapore, or exam-
ple, invests heavily in public transport and uses a combination o regula-
tion and economic incentives to limit private car ownership.
URBANIZATION
The planets population is projected to rise above 9 billion in the second
hal o the century beore leveling o. Between now and then, virtually all
population growth will be in developing countries, with a very high pro-
portion in cities.
As many o the countries where population is projected to rise have large
numbers o people still living in poverty, levels o consumption will need
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> DRIVERS OF CHANGING PRODUCTION AND CONSUMPTION PATTERNS
to rise as well. As more join the ranks o the middle class, this will place
additional pressure on planetary resources and ecosystems.
Hence the need or changing patterns o consumption and production,
notably in developed countries, to relieve global resource pressures.
Hence also the urgent need or diusion across the globe o resource-
ecient and energy-ecient technologies as well as renewable energy.
GLOBALIZATION
The globalization o production (and consumption) has brought oppor-
tunities to developing countries to raise their citizens out o poverty by
participating in global production networks.
Yet, the growth in world trade and the global economy over the past sev-
eral decades has not been matched by a growth in the capacity o nation-
states and other actors to manage the consequences o growth or the
global environment. Nor have the benets o growth yet reached all.
Moreover, the (relative i not oten absolute) decoupling o economic
activity rom resource use and pollution which has occurred in some devel-
oped countries has beneted rom globalization, as resource- and energy-
intensive activities are more and more concentrated in developing coun-
tries. On the other hand, the resource-intensity and pollution-intensity o
consumption, considering entire product lie cycles, is little changed.
This is illustrated by the dierence between production-based emissions
(all emissions produced within a nations border) and consumption-based
emissions (all emissions resulting rom consumption within a nation) or
the 13 highest emitting countries. Globalization has allowed productionto be outsourced to rapidly developing countries, shiting the associated
emissions to production activities in those countries, oten or export back
to developed countries.
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
1958
-196
2
1963
-196
7
1968
-197
2
1973
-197
7
1978
-198
2
1983
-198
7
1988
-199
2
1993
-199
7
1998
-200
2
2003
-200
7
Population(
1000
inh
ab)
Rural Population Urban Population
Rural and urban population
Source: Population Division, UN-DESA, 2010.
Source: Herwich and Peters, 2009.
1.3
1.2
1.1
1
0.9
0.8
0.7
Russian
Federation
Production-basedemissionsnorm
alizedto1
China
Brazil
Canada
India
Mexico
UnitedStates
ofAmerica
France
RepublicofKorea
Germany
United
Kingdom
Italy
Japan
The percentage difference between production-basedand consumption-based CO2 emissions for the
13 highest emitting countries
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POLICY AND VOLUNTARY RESPONSES
IV. POLICY AND
VOLUNTARY
RESPONSES
With ew exceptions, trends observed in earlier sections show resource use per
capita rising with income albeit at dierent rates. Though the rate o increase
may slow somewhat as countries become more developed and their markets
or material-intensive products become saturated, in very ew instances has
there been a bending o the curve to the point where resource use, emis-
sions and waste actually begin to decline while incomes continue to rise.
To make that happen requires more determined eort by all stakeholders.
Increasingly, governments, companies, and various groups o civil societyare working to nd eective measures to delink resource use, waste, and
harmul emissions rom economic activity.
Governments have been using a number o measures: sustainable pro-
curement; tighter eciency standards or automobiles, appliances and
new buildings; renewable energy portolio standards and eed-in taris or
electricity; various subsidies to promote greener products and services;
and, in response to the economic crisis, green stimulus spending. Local
authorities are both active and innovative in devising measures to pro-
mote sustainable cities and communities. In many cases, they are ahead
o national governments.
The business sector is increasingly taking into account environmental
and social issues, driven by a combination o government regulation,
shareholder demands and consumer preerences and civil society pres-
sure. Leading companies have set sustainability targets with timelines and
regular reporting on progress, have signed on to voluntary pacts like the
Global Compact and the Carbon Disclosure Project, and have engaged
in a variety o partnerships with NGOs, academia and the public sector
to bring their scientic, technical and managerial expertise and nancial
resources to bear on societal sustainability challenges.
Civil society organizations have numerous local, regional, and national initi-atives to raise consumer and citizen awareness, improve access to inorma-
tion, pioneer new market approaches (such as air trade), and combine
public pressure with constructive engagement with the private sector to
change business practices.
GOVERNMENTS AND LOCAL AUTHORITIES
As governments are large consumers o certain products, their purchasing
preerences can shape whole markets. Examples include: ood, clothing,
paper, electronic equipment, motor vehicles, electricity, and buildings.
States shall enact eective environmentallegislation. Environmental standards,
management objectives and priorities should refect
the environmental and developmental contextto which they apply. Standards applied by some
countries may be inappropriate and ounwarranted economic and social cost to other
countries, in particular developing countries.
Principle 11, Rio Declaration on Environment and Development, 1992.
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POLICY AND VOLUNTARY RESPONSES
Canada
A Policy on Green Procurement issued in April 2006requires that environmental perormance considerations
be embedded into the procurement decision-making
process in the same manner as price, perormance, quality
and availability. Guidelines, toolkits and training have been
made available to acilitate this process. It is estimated that
three quarters o government departments or agencies
had green purchasing policies in place as o 2006/2007.
United StatesA 2007 Executive Order integrates and updates prior
practices and requirements with the goal o increasing
ederal purchasing o energy ecient, recycled con-
tent, bio-based, and environmentally preerable prod-
ucts and services. Federal agencies must also ensure
that: at least hal o renewable energy comes rom new
renewable sources; water consumption is reduced by
2% annually through 2015; feet total petroleum con-
sumption is reduced by 2% annually, use o alternative
uels is increased by 10% a year, and plug-in hybrid (PIH)
vehicles are used when available at reasonable costs.
Mexico
The 2007-2012 National Development Plan created
the scope or changes in procurement policy that allow
or the incorporation o sustainability criteria. Recent
changes in procurement law in Mexico include the
requirement that all wood and urniture purchased by
public agencies possess a certicate demonstrating its
legal origin (since September 2007) and paper should
have at least 50% recycled content.
Argentina
Argentina has developed an action plan to implement
sustainable public procurement (SPP), and carried out
research and training activities or procurement ocials
and policy-makers with the support o the Marrakech
Task Force on SPP.
China
From January 2007, the central government and provincial governments
are asked to give priority to environment-riendly products listed in a
green product inventory. The list, released in late 2006, includes prod-
ucts ranging rom cars to construction materials that have been approved
by the China Certication Committee or Environmental Labelling. Prod-
ucts are required to meet the environmental protection and energy sav-
ing standards set by the State Environmental Protection Administration in
order to obtain the environmental label.
Republic o Korea
The Act on the Promotion o the Purchase
o Environment-Friendly Products, passed
in 2005, requires public agencies at national
and local levels to publish green procure-
ment policies and implementation plans,
carry out the latter, and report results. The
Environment Ministry is asked to publish
guidelines, designated items and evaluation
criteria. Although green public procurement
is still relatively small (roughly 6% o total
public procurement in 2003), it has been
growing very rapidly during the last years.
Japan
The 2000 Law on Promoting Green Purchasing makes it
compulsory or government institutions to implement green
procurement, while encouraging local authorities, private
companies and individuals to make eorts or purchasing envi-
ronmentally sound products and services. All state ministries,
departments and agencies have to dene procurement tar-
gets every scal year and make the results o green procure-
ment eorts publicly available. 90% o central government
agencies implement green procurement. Although by 2005 all
sub-national governments had developed procurement poli-
cies, implementation has been slower.
European Union
By early 2007, 9 out o 26 EU member-states had adoptednational SPP or Green action plans, 5 had drated a
national action plan but it had not yet been adopted, and
2 were in the process o preparing one. In Austria, Denmark,
Finland, Germany, Netherlands, Sweden and the UK, 40 to
70% o all tenders published on Tenders Electronic Daily incor-
porated some environmental criteria, although in the remain-
ing 18 countries, this gure was below 30%.
Sustainable Public Procurement
http://www.tpsgc-pwgsc.gc.ca/ecologisation-greening/achats-procurement/politique-policy-eng.htmlhttp://www.unitedbiolube.us/UBL_Executive_Orders.htmlhttp://www.sela.org/DB/ricsela/EDOCS/SRed/2008/11/T023600003149-0-Plan_Nacional_de_Desarrollo_2007-2012_%28M%E9xico%29.pdfhttp://www.unepie.org/scp/marrakech/taskforces/pdf/Procurement2.pdfhttp://www.public-procurement.cn/http://eng.me.go.kr/content.do?method=moveContent&menuCode=pol_pol_pro_enforcinghttp://www.env.go.jp/en/laws/policy/green/index.htmlhttp://ec.europa.eu/environment/gpp/index_en.htmhttp://www.unitedbiolube.us/UBL_Executive_Orders.htmlhttp://www.sela.org/DB/ricsela/EDOCS/SRed/2008/11/T023600003149-0-Plan_Nacional_de_Desarrollo_2007-2012_%28M%E9xico%29.pdfhttp://www.unepie.org/scp/marrakech/taskforces/pdf/Procurement2.pdfhttp://www.public-procurement.cn/http://eng.me.go.kr/content.do?method=moveContent&menuCode=pol_pol_pro_enforcinghttp://www.env.go.jp/en/laws/policy/green/index.htmlhttp://ec.europa.eu/environment/gpp/index_en.htmhttp://www.tpsgc-pwgsc.gc.ca/ecologisation-greening/achats-procurement/politique-policy-eng.html -
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Water or Everyone (Peru)
Water or Everyone program includes 270 projects
in the water and sanitation sector. The upgrading
o water and wastewater plants in many parts o the
country will ensure the provision o clean water and
reduce the time spent in etching water. The program
will deliver potable water to some 49,000 beneciary
amilies, and sewer service to some 57,000 amilies.
Energy Efcient Public Buildings (France)
The goal o the French government is to reduce the
energy consumption o existing buildings by at least
38 percent by 2020. To reach this goal France will
start by 2012 the renovation o existing public build-
ings to reduce their energy consumption by 40 per-
cent and their GHG emissions by 50 percent. As o
2010 the norm or new oces and public buildings
will become 50 kWh/m/year.
Sustainable Public Transport and Sport (South Arica)
The South Arican government is building a new sustainable
public transport system or the 2010 FIFA World Cup. The
project is being implemented by UNDP, unded by GEF and
executed by the South Arican Department o Transport,
and aims to produce measurable environmental benets
including an estimated 423,000 tCO2 reduction in direct
GHG emissions over a ten-year liespan, air quality improve-
ment and reductions in ambient noise levels.
GRIHA (India)
GRIHA, Green Rating or Integrated Habitat Assessment, is a build-
ing design evaluation system which aims to minimize the demand
or renewable and non-renewable resources by ocusing on reducing
water and energy consumption, limiting waste generation through recy-
cling, and reducing pollution. GRIHA emphasizes cost eectiveness
and the integration o traditional heritage with scientic tools. GRIHA
has 40 registered projects and recently the Government o India has
announced that all government buildings must be at a minimum 3-star
GRIHA compliant. In addition, the Energy Conservation Building Code
(ECBC) has been made mandatory in eight States o India.
Sustainable Inrastructure and Buildings
PromisE Sustainable housing (Finland)
The Finnish Government has been working since the mid 1990s to make construction more ecologically sus-
tainable. PromisE is an internet-based environmental classication system that has been developed to acilitateevaluations o the environmental properties o buildings in Finnish conditions. The system has two main ver-
sions: one or evaluating existing buildings and properties, and the other or use in the construction o new
buildings. The PromisE system grades properties or individual buildings, and dierent versions can be applied
to assess shops or commercial buildings as opposed to housing. Whole properties are assessed, including areas
not built over. Environmental actors are divided into our main groups: health, use o natural resources, eco-
logical impacts and environmental risk management. Each o these main areas includes a total o 35-40 indica-
tors that can be measured numerically or otherwise evaluated. Both the private and public sector use PromisE.
Green construction (South Korea)
In 2009 South Korea announced a green macr-
oeconomic stimulus plan. At a cost o aroundU$36 billion over 2009 to 2012, the initiative
aims to create 960,000 jobs, with 149,000 jobs
expected to be created in 2009, mainly in con-
struction. These low-carbon projects include
developing railroads and mass transit, uel e-
cient vehicles and clean uels, energy conserva-
tion and environmentally riendly buildings. These
measures alone will account or over 1.2 per cent
o GDP, whereas the ull stimulus plan involves
investments o around 3 per cent o GDP.
http://www.iadb.org/projects/project.cfm?id=PE-L1020&lang=enhttp://www.invest-in-france.org/Medias/Publications/152/Argumentaire%20Grenelle_UK.pdfhttp://www.greening2010.co.za/index2.php?option=com_content&do_pdf=1&id=532http://www.grihaindia.org/index.phphttp://www.ymparisto.fi/default.asp?node=4779&lan=enhttp://www.unep.ch/etb/publications/Green%20Economy/G%2020%20policy%20brief%20FINAL.pdfhttp://www.unep.ch/etb/publications/Green%20Economy/G%2020%20policy%20brief%20FINAL.pdfhttp://www.ymparisto.fi/default.asp?node=4779&lan=enhttp://www.grihaindia.org/index.phphttp://www.greening2010.co.za/index2.php?option=com_content&do_pdf=1&id=532http://www.iadb.org/projects/project.cfm?id=PE-L1020&lang=enhttp://www.invest-in-france.org/Medias/Publications/152/Argumentaire%20Grenelle_UK.pdf -
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POLICY AND VOLUNTARY RESPONSES
Mexico
In 2002 the Mexican government introduced reormsto reduce residential electricity subsidies. Households
consuming between 280 and 500 kWh bimonthly
ace a gradual and dierentiated reduction in their
electricity rate subsidy, while households that con-
sume more than 500 kWh will have the subsidy elimi-
nated. The subsidy is retained or low-consumption
households (less than 280 kWh), representing 75%
o the population. The reduction in residential elec-
tricity subsidies is expected to generate revenues o
5 billion pesos. At the same time, a nancial support
programme will encourage the acquisition o more
ecient rerigerators, air conditioners and insulationor consumers who live in hot regions.
Ireland
In March o 2002, Republic o Ireland became the rst country to
introduce a plastic bag tax, or PlasTax. Designed to rein in rampant
consumption o 1.2 billion plastic shopping bags per year, the tax
resulted in a 90% drop in consumption. To complete the win-win
scenario, approximately $9.6 million was raised rom the tax in the
rst year, which is earmarked or a green und established to benet
the environment. Approximately 18,000,000 liters o oil have been
saved due to reduced production o bags. Plastic bags are also taxed
or example in Italy and Belgium, Taiwan and several Indian cities.
Finland
Finland was the rst country to implement a CO2 tax in 1990,
which today is among the highest in Europe. Without theimpact o energy taxation, emissions would have been 7%
higher than the 57 million tonnes recorded in 2000. The
share o the carbon tax revenue is circa 500 million annually.
The Netherlands
The Netherlands, in 2001, through its Environ-
mental Action Plan, increased energy prices or
small-scale consumers by more than one-third
by means o a tax levied on gas and electric-
ity. Most o the tax revenues are redistributed
to taxpayers through reductions in wage and
income taxes, but a portion covers the cost o
tax incentives or energy conservation meas-
ures. With the introduction o this tax, the price
o household electricity has gone up by 15%.
Eco-tax Measures
Germany
In 1999, Germany initiated its Ecological Tax Reorm,
gradually raising taxes on ossil uels and electricity
without increasing the overall tax burden. Electric-
ity generated rom renewable energy sources is
exempt rom the eco-tax, and electricity used by
local public transport enjoys a 50% tax reduction.
Some o the revenue is used to provide advice to
homeowners on reducing energy consumption and
or grants to schools or solar heating, photovoltaic
panels and biomass energy systems.
China
China assesses levies on 29 pollutants in waste-
water, 13 industrial waste gases, and various orms
o industrial solid and radioactive waste. Regulated
substances include SO2, NOx, CO2, hydrogensulde, dust, mercury, and lead. Plants pay a ee or
emissions greater than the regulatory standard or
each substance, but when more than one pollutant
exceeds the standard, plants pay only or the single
pollutant which will result in the largest ee. These
efuent charges appear to have helped reduce both
water and air pollution intensity during the period o
rapid industrial growth in China since 1979. The efu-
ent ees are also a major source o revenue or envi-
ronmental projects. O the ees collected, 80 percent
are used or grants and low-interest loans or pollu-
tion control projects, and the remaining 20 percent
reund local administration and monitoring activities.
MalaysiaMalaysia was one o the rst countries to use efuent charges, having
introduced efuent ees, paired with licensing, to control pollution rom
the palm oil industry as early as 1977. Prior to the introduction o the reg-
ulation, crude palm oil was the single worst pollution source in the coun-
try. Daily discharge increased by more than 300% rom 1965 to 1977.
The regulation aims to reduce pollution in 42 rivers that were heavily
polluted due to disposal o untreated efuents. A year ater the imposi-
tion o the regulation, the pollution load ell more than hal. Reduction
in the pollution load decreased as well in the succeeding years. From
1977 to 1994, organic pollution load in the rivers decreased signicantly
by about 91%. As o 2006, o 1,064 water quality monitoring stations
located within 146 river basins, almost 60% reported clean water while
only 8% reported water that was categorized as very polluted.
Chicago (The United States o America)
In 2007 Chicago set a tax on bottled water, becoming the rst major U.S. city to impose
such a surcharge. The Bottled Water Tax applies to the retail sale o bottled water in
the City at a rate o $0.05 per bottle (i.e. all brands o non carbonated bottled water
intended or human consumption). In addition to producing revenue that can be used
to maintain the citys water inrastructure, the tax is designed to encourage citizens
to shit their hydration habits rom bottled to tap water, which is essentially the same
thing you get when you buy most bottled water brands. The tax also helps in reduc-
ing the number o plastic containers that wind up in landlls (less than 20% o plastic
water bottles in the United States o America are ever recycled) and reducing the
greenhouse gas and other pollution created by trucking all that water to retail sites.
http://www.un.org/esa/sustdev/publications/household_consumption.pdfhttp://www.environ.ie/en/Environment/Waste/PlasticBags/http://www.environment.fi/default.asp?contentid=147208&lan=enhttp://wms-soros.mngt.waikato.ac.nz/NR/rdonlyres/ei6yfl7vfpcx2dmjqnkz6roqp6ctzzxoqazaqukjp4r6bqbyj6bn4zxhnypc7lyv46m7kh5jsb7lussmipzf5hntiuh/EuropeET.dochttp://www.sbjum.de/english/html/taxcriteria.htmlhttp://www.tesisenxarxa.net/TESIS_UAB/AVAILABLE/TDX-0212109-102048/ll1de1.pdfhttp://www.aecen.org/use-effluent-charges-malaysias-palm-oil-industryhttp://www.cityofchicago.org/city/en/depts/rev/supp_info/tax_list/bottled_water_tax.htmlhttp://www.sbjum.de/english/html/taxcriteria.htmlhttp://www.cityofchicago.org/city/en/depts/rev/supp_info/tax_list/bottled_water_tax.htmlhttp://www.aecen.org/use-effluent-charges-malaysias-palm-oil-industryhttp://www.tesisenxarxa.net/TESIS_UAB/AVAILABLE/TDX-0212109-102048/ll1de1.pdfhttp://www.environ.ie/en/Environment/Waste/PlasticBags/http://www.environment.fi/default.asp?contentid=147208&lan=enhttp://wms-soros.mngt.waikato.ac.nz/NR/rdonlyres/ei6yfl7vfpcx2dmjqnkz6roqp6ctzzxoqazaqukjp4r6bqbyj6bn4zxhnypc7lyv46m7kh5jsb7lussmipzf5hntiuh/EuropeET.dochttp://www.un.org/esa/sustdev/publications/household_consumption.pdf -
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POLICY AND VOLUNTARY RESPONSES
Ecolabel (EU)
The European Ecolabel is a voluntary scheme, estab-
lished in 1992 to encourage businesses to market
products and services that are less damaging to theenvironment. Products and services awarded the
Ecolabel carry the fower logo, allowing consumers
including public and private purchasers to iden-
tiy them easily. Today the EU Ecolabel covers a wide
range o products and services, with urther groups
being continuously added. Product groups include
cleaning products, appliances, paper products, textile
and home and garden products, lubricants and serv-
ices such as tourist accommodation.
Environmental Choice (New Zealand)
The New Zealand Ecolabeling Trust is a multiple
specications based environmental labelling pro-
gramme, which operates to international stand-
ards and principles. It was initiated and endorsed
by the New Zealand Government in 1990. Cur-
rently there are 14 product categories or prod-
ucts such as paints, oce paper and stationery
and thermal insulants amongst others. Environ-
mental Choice New Zealand has over 1500 prod-
ucts that are registered as using the label.
Energy Star (United States)
Energy Star is a joint voluntary program o the
U.S. Environmental Protection Agency and the U.S.
Department o Energy which was started in 1992 to
reduce greenhouse gas emissions through energy
eciency. Energ Star is estimated to have saved
enough energy in 2009 alone to avoid greenhouse
gas emissions equivalent to 30 million cars while
saving nearly $17 billion in utility bills.To date, more
than 30,000 commercial and industrial buildings havetargeted energy eciency improvements and more
than 3,200 o these buildings have earned the Energy
Star. Natural Resources Canada has also adopted the
US Energy Star program or Canada.
Good Environmental Choice (Australia)
The Good Environmental Choice Label is the only environmental labelling
program in Australia which indicates the environmental perormance o a
product rom a whole-o-product-lie perspective or consumer goods. The
label is awarded to products that meet voluntary environmental perormance
standards which have been created and assessed in conormance to interna-tional environmental labelling standards.
Voluntary Standards and Labels
Eco-Label (South-Korea)
The Korea Eco-labeling Program is a voluntarycertication program designed to encourage
rms to provide consumers with a choice o envi-
ronmentally sound products by displaying the
designated logo (Eco-Label) and brie descrip-
tion. The purpose is to reduce consumption o
energy and resources and to minimize generation
o polluting substances in each production step.
The Eco-labeling Program has been in place since
1992, and currently the scheme has 767 dierent
categories o products such as batteries, wood
products, beds and air-conditioners. In 2008 some
5,450 products o 1,179 companies had the label.
The GreenLabel (Singapore)
Singapores GreenLabel programme was launched in May
1992 by the Ministry o the Environment as part o the coun-
trys national environmental management plan. It is a voluntary
ISO Type I programme that is open to local and oreign compa-
nies conorming to the specied product criteria. As o January
2002, the programme applied to 29 product categories, cover-
ing a broad range o products, but excluding ood, drinks and
pharmaceuticals, as well as services and processes. More than
700 products currently have the GreenLabel, involving over 130
dierent manuacturers.
Energy Label (Taipei, China)
To promote deployment o energy eciency technologies and application o market incen-
tive mechanisms, as well as to encourage manuacturers to invest in research and devel-
opment o high energy eciency products, the Bureau o Energy, Ministry o EconomicAairs, initiated the voluntary Energy Label program in 1992. The basis or determining
the energy eciency criteria o energy labeled products is to evaluate the energy per-
ormance o products on the market and select the middle to top perormers on the e-
ciency distribution curve. The eciency criteria are then periodically reviewed and revised
to refect the market conditions. These measures ensure creditability o energy label in
denoting high energy eciency products. The energy label is issued to individual product
models only, not to the manuacturing system or corporation as a whole, and currently the
label program covers 28 product categories and 4336 products with 258 brand names.
EcoLogo (Canada)
Founded in 1988 by the Government o Canada
and then transerred to a science-based environ-mental consultancy (TerraChoice) EcoLogoTM is
North Americas largest environmental standard
and certication mark. EcoLogo provides cus-
tomers with assurance that the products and serv-
ices bearing the logo meet stringent standards o
environmental leadership. There are thousands
o EcoLogo Certied products covering a large
variety o products and services ranging rom
carpets to car washed to motel categories. EcoL-
ogo and GreenSeal are the two North American
eco-labelling programs approved by the Global
EcoLabelling Network as meeting internationally
recognized ISO 14024 requirements.
http://ec.europa.eu/environment/ecolabel/http://www.enviro-choice.org.nz/http://www.energystar.gov/http://www.geca.org.au/http://www.koeco.or.kr/eng/index.asphttp://www.sec.org.sg/awards/greenlabelhttp://www.energylabel.org.tw/index_en.asphttp://www.environmentalchoice.com/en/index.asphttp://www.environmentalchoice.com/en/index.asphttp://www.energylabel.org.tw/index_en.asphttp://www.enviro-choice.org.nz/http://www.koeco.or.kr/eng/index.asphttp://www.energystar.gov/http://www.sec.org.sg/awards/greenlabelhttp://www.geca.org.au/http://ec.europa.eu/environment/ecolabel/ -
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By the end o 2008, there were 746 certied Fairtrade producers world-
wide, and over 2,700 companies are licensed to use the Fairtrade Mark
on products. The estimated retail value o Fairtrade products rose 22%
to almost 2.9 billion while airtrade sales grew by 50% or more in seven
countries, despite the recession, and no markets ell back. Tea saw the
largest 2008 growth rate (112% rom 2007), albeit rom a very small base.
In addition to products illustrated in the gure, over 27 million items made
o Fairtrade certied cotton were sold, almost double the sales o 2007.
Sales o bananas grew by 28% to almost 300,000 metric tons and those o
honey by 22%. Almost nine million litres o Fairtrade wine were consumed
an increase o 57%. Standards have now been established or olives
and olive oil, soybean, haricot beans, chickpeas and lentils. Several revised
standards allow more armers o mangoes, bananas, pineapple and vanilla
to enter the market as well. These growth rates are expected to continue.
The rst ever global consumer survey on Fairtrade was conducted in 2008
and ound that hal o the public are now amiliar with the Fairtrade Mark.
The survey ound that active ethical consumers make up more than halthe population (55%) in the countries surveyed.7
ThousandsMT
Fairtrade products (volume in 2007 andpercentage increase in 2008)
0
50
100
150
200
250
300
350
Conventional Organic28%
14%
1% 11%
22% 11%112%
N/A
N/A
Banan
a
Cocoa
beans
Coffee
roaste
d
Fresh
fruit
Fruitju
iceHo
ney Rice
Sugar Tea
Source: FLO, 2009. Note: N/A change in calculation
does not allow to method compare rom previous year.
The needs o small armers, whether they growcoee [in the South] or produce [in the North],may be quite similar. Both groups need better
access to and more control over the market. Thatcan only happen i consumers use their marketpower to vote or air prices to the grower, better
access to nancing or small armers, and moreenvironmentally sustainable production.
Rink Dickinson, Co-Director, Equal Exchange
-
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POLICY AND VOLUNTARY RESPONSES
Energy Perormance Certifcate(England and Wales)
The Energy Perormance Certicate (EPC) was rst
introduced or the sale o existing homes, as part o theHome Inormation Pack. Since 1 October 2008, when
buildings are built, sold or rented, an EPC has been
required. From April 2008 this was extended to newly
built homes and large commercial properties. The certi-
icate provides energy eciency A-G ratings and recom-
mendations or improvement. The ratings similar to
those ound on products such as ridges are standard
so the energy eciency o one building can easily be
compared with another building o a similar type.
Mandatory Standards and Labels
Energy efciency light bulbs (Australia)
In February 2007 Australia announced a plan to establish energy eciency stand-
ards or light bulbs that would ban incandescent bulbs by 2010, with both regulatory
and persuasive measures used to induce a shit to compact fuorescent bulbs (CFLs).
According to the Federal Government, up to 95 per cent o the energy each standard
light bulb uses is wasted, while compact fuorescents use only 20 per cent as much
electricity to produce the same amount o light. It is estimated that household lighting
costs will be reduced by up to 66% and that CO2 emissions will be reduced by 800,000
tonnes per year or the 2008-2012 period. Cuba and Venezuela also have national pro-
grammes to replace incandescent bulbs with compact fuorescents. Similar measures
were taken in the European Union in 2009.
Regulating greenhouse gas emissions romcars (United States o America)
In 2010 the White House nalized rules on the rst
U.S. greenhouse gas emission standard or auto-
mobiles, which would raise average uel economy42 percent by 2016 in a bid to slash oil imports and
ght climate change. The higher mileage require-
ments will reduce U.S. greenhouse gas emissions
by 900 million metric tons and save 1.8 billion bar-
rels o oil over the lie o vehicles built during the
2012-2016 model years, according to the Environ-
mental Protection Agency. The vehicle emissions
standards will be phased in starting with the 2012
model year, raising uel economy to an average
35.5 miles per gallon by the time the 2016 models
are ready compared with the current 25 pg.
Eco-Labeling (India)
To increase consumer awareness, the Government o India launched the eco-labeling scheme known as
`Ecomark in 1991 or easy identication o environment-riendly products. Any product which is made, used
or disposed o in a way that signicantly reduces the harm it would otherwise cause the environment could
be considered as Environment-Friendly Product. The criteria ollow a cradle-to-grave approach, i.e. rom raw
material extraction, to manuacturing, and to disposal. The Ecomark label is awarded to consumer goods
which meet the specied environmental criteria and the quality requirements o Indian Standards. As a con-
tinuation to Ecomark, starting in January 2010, it will become mandatory or certain products to carry eco-
labeling in India. Firstly our products rerigerators, air conditioners, distribution transorms and forescent
lamps will be covered. By summer 2010 three more product lines (color TVs, LPG stoves and electric
motors) will need to carry the mandatory eco labeling.
Energy labels (EU)
According to several dierent EU Directives most domestic appliances, light bulb packag-
ing and cars must have an EU Energy Label clearly on display when it is oered or sale oror rent. The Energy Rating label enables consumers to compare the energy eciency o
appliances. It is also an incentive or manuacturers to improve the energy perormance o
their products. The energy eciency o the appliance is rated in terms o a set o energy
eciency classes rom A to G on the label, A being the most energy ecient, G the least
ecient. Recently A+ and A++ grades were introduced or rerigeration products.
Energy Label (China)
China is now one o the worlds largest producers
and consumers o household appliances, light-
ing, and other residential and commercial equip-
ment. In 2005 China started a mandatory energy
inormation label, the Energy Label. It includes
ve categories o eciency, rom 100% (meeting
the minimum standard) to 55% o the minimum
standard. The label initially covered two products
and in 2007 was extended to cover our products
including air conditioners, household rerigera-
tors, clothes washers, and unitary air conditioners.
Phosphate reductions in laundrydetergents (Sweden)
Phosphorus emissions rom sources such as
detergents and cleaning agents contribute toeutrophication in lakes and seas. In 2008 the Gov-
ernment o Sweden introduced a ban on retail
sales o laundry detergents containing phos-
phates. The Government intends to introduce a
ban on phosphates in dishwasher detergents or
private use rom 1 July 2011. The ban means that
it will not be permitted to manuacture or market
dishwasher detergents with a phosphorus con-
tent o more than 0.5 per cent by weight.
http://www.communities.gov.uk/planningandbuilding/theenvironment/energyperformance/overview/http://www.communities.gov.uk/planningandbuilding/theenvironment/energyperformance/overview/http://www.environment.gov.au/sustainability/energyefficiency/lighting/index.htmlhttp://www.enn.com/top_stories/article/41093http://www.enn.com/top_stories/article/41093http://envfor.nic.in/cpcb/ecomark/http://www.energy.eu/#energy-focushttp://en.cnis.gov.cn/zyyhj/nxbs/http://www.sweden.gov.se/sb/d/11459/nocache/true/a/121557/dictionary/truehttp://www.sweden.gov.se/sb/d/11459/nocache/true/a/121557/dictionary/truehttp://en.cnis.gov.cn/zyyhj/nxbs/http://www.enn.com/top_stories/article/41093http://www.communities.gov.uk/planningandbuilding/theenvironment/energyperformance/overview/http://envfor.nic.in/cpcb/ecomark/http://www.sweden.gov.se/sb/d/11459/nocache/true/a/121557/dictionary/truehttp://www.environment.gov.au/sustainability/energyefficiency/lighting/index.htmlhttp://www.energy.eu/#energy-focus -
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POLICY AND VOLUNTARY RESPONSES
Sustainable Communities and Cities
China (Panyu Jinshan, Guangzhou)
This will be a community o 8,000 homes along with a com-munity centre and some retail units. The aim is to achieve
65% reductions in energy demand and 50% reduction in
water demand. The plans or Panyu Jinshan include develop-
ing a cultural street and space or local Cantonese Opera,
and solar hot water panels on all the possible roo areas in
the development.
United States o America (Portland, Oregon)
Rated as the greenest city in America, hal o
Portlands power comes rom renewable sources,
a quarter o the workorce commutes by bike,
carpool or public transportation, and the city has
35 buildings certied by the U.S. Green Building
Council. Portland aims to be a 20 Minute City
where residents spend 20 minutes or less traveling
rom home to work, shop or play.
Green Building in US and the world
The foor area registered and certied to the
LEED green building rating system in 2009 isestimated to grow by over 40 percent com-
pared to last years totals, or a cumulative
total o over 7 billion square eet worldwide
since the standard was launched in 2000.
Non-U.S. green buildings reached nearly 800
million square eet o registered projects in
2009, representing more than a ourth o
all project square ootage. Non-U.S. LEED
projects could show a 30% increase in regis-
tration this year, thanks in large part to green
building booms in China, India, and the
Middle East. Green building is also growing
quickly in Europe, notably Germany and Italy.
United States o America (Sonoma Mountain Village,Caliornia)
Full construction started on site in 2009 with rst residents
moving in during 2010. This 200 acre (81 ha) site will accom-
modate 1,892 homes, and 825,000 square eet (76,645 m2)
o oce, retail and commercial space. An 83% reduction in
total household direct carbon emissions is targeted.
Barangaroo (Australia)
Barangaroo is a 22 ha site in the heart o
Sydney whose construction towards a
sustainable community is due to start inDecember 2010, with 350,000m2 o com-
mercial space and 500 residential units
planned or development. The aim is to
reach a 75% reduction in energy demand
compared to business as usual, a 20%
reduction in embodied energy, 87% diver-
sion rom landll o operational waste, with
a 100% reduction in greenhouse gases and
a 4% car use modal split
Portugal (Mata de Sesimbra)
An integrated sustainable building, tourism, nature conservation and
reorestation programme. The 5,300 hectare site will contain a 4,800
hectare nature reserve and native pine, cork and oak orest restoration
project, alongside a 500 hectare tourism development comprising around
5,000 units. The development will go on to meet zero waste targets,
while 50 per cent o ood will be sourced rom local sources. The site will
use 100% renewable energy and the transport network is designed virtu-
ally to eliminate private cars.
United Arab Emirates (Masdar city)
This will be the worlds rst zero-carbon, zero-
waste, car-ree city. The citys electricity and
cooling will be provided by renewable energy
generated on site. Water consumption will
be reduced by over 50% compared to the
Abu Dhabi baseline. Masdar City will cover
6 km2 and house 50,000 people and 1,500
businesses. An expected 40,000 workers will
commute to the city daily. The rst phase is
scheduled to be complete and habitable in
2009, with ull completion due around 2016.
United Kingdom (Beddington Zero Energy Development)
Beddington Zero Energy Development is the UKs largest mixed
use sustainable community o 100 households. It was com-pleted and occupied in 2002. 86% o BedZED residents buy
organic ood and 39% grow some o their own ood. The resi-
dents only use 72 litres o mains water per day, topped up by
15 litres o recycled or rainwater.
http://www.oneplanetcommunities.org/China/index.htmlhttp://www.sustainlane.com/us-city-rankings/cities/portlandhttp://www.greenbiz.com/sites/default/files/GreenBuildlingImpactReport2009.pdfhttp://www.oneplanetcommunities.org/Sonoma/index.htmlhttp://www.oneplanetcommunities.org/Sonoma/index.htmlhttp://www.oneplanetcommunities.org/communities/barangaroo/http://www.oneplanetcommunities.org/Sesimbra/http://www.masdar.ae/en/home/index.aspxhttp://www.greenbiz.com/sites/default/files/GreenBuildlingImpactReport2009.pdfhttp://www.oneplanetcommunities.org/Sesimbra/http://www.oneplanetcommunities.org/China/index.htmlhttp://www.oneplanetcommunities.org/Sonoma/index.htmlhttp://www.masdar.ae/en/home/index.aspxhttp://www.sustainlane.com/us-city-rankings/cities/portlandhttp://www.oneplanetcommunities.org/communities/barangaroo/ -
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POLICY AND VOLUNTARY RESPONSES
BUSINESSES
Corporate environmental and social responsibility has become a higher
prole management concern in recent years in many countries. Mem-
bership in a number o global initiatives refects this, including the Glo-
bal Compact, the Global Reporting Initiative, the Carbon Disclosure
Project and ISO14000 certication o corporate environmental manage-
ment systems as well as the development o ISO26000.All these are voluntary initiatives. The rst stresses adherence to common
principles o corporate conduct and regular reporting, the next two empha-
size inormation disclosure, while the last uses international certication to
convey in summary orm inormation about environmental management.
The number o Global Compact signatories and the number o GRI report-
ers have both increased sharply since the middle o the past decade. As o
2008, GC signatories exceeded 6,000 and there were 5,300 active business
participants rom more than 135 countries.
The International Standards Organization (ISO) provides a widely recog-
nized set o standards or products and processes, including environmen-
tal management processes o enterprises. ISO 14001 certication signalspotential customers or partners that a company meets certain standards
with respect to internal controls on materials use, energy use, pollution
and waste, and that it is committed to continuous improvement.
The number o enterprises certied to ISO 14001 has been rising steadily,
rom under 40,000 in 2001 to almost 160,000 in 2007. It is a particularly well
utilized practice or exporters to obtain ISO 14001 certication as a means
o inorming consumers in their export markets o their environmental per-
ormance. This is one reason or the large weight o China and Japan in the
total number o certicates issued.
TotalGlobalCom
pactSignatories
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2000 2001 2002 2003 2004 2005 2006 2007 2008
Business Non-Business
Global Compact signatories
WorldwidetotalofISO
14001
certificates
0
20,000
40,000
60000
80,000
100,000
120,000
140,000
160,000
2001 2002 2003 2004 2005 2006 2007
Worldwide total of ISO 14001 certificates
Source: Global Compact, 2009.
Source: ISO, 2008.
Companies that take the lead onsustainability will be market makers rather
than market takers.
The business case for sustainability, World Economic Forum,January 2009
-
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POLICY AND VOLUNTARY RESPONSES
As o 2009, the Global Reporting Initiative (GRI) counted over 1,200 organ-isations worldwide, many private corporations, that issued sustainability
reports based on its GRI G3 Guidelines an increase o 46% over 2007.
The Global Reporting Initiative (GRI) is a network-based organization that
has development the worlds most widely used sustainability reporting/dis-
closure ramework through a consensus-seeking process with participants
drawn globally rom business, civil society, labor, and proessional institu-
tions. This ramework sets out the principles and indicators that organiza-
tions can use to measure and report their economic, environmental, and
social perormance. The aim o the GRI is that disclosure o these perorm-
ance become as commonplace and comparable as nancial reporting,
and as important to organizational success.8
TotalnumberofGRIreporters
0
200
400
600
800
1,000
1,200
1,400
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
GRI: Number of firms and other organizations reporting
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
China
Japan
Spain
Italy
UK
ep of Korea
Germany
USA
Sweden
Romania
Top ten ISO14001 countries in 2007
Source: ISO, 2008
Source: GRI, 2010.
Business is the orce o change.Business is essential to solving theclimate crisis, because this is what
business is best at: innovating,changing, addressing risks, searchingor opportunities. There is no more
vital task.
Richard Branson, Founder, Virginhttp://www.mjcsustainability.com/
-
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POLICY AND VOLUNTARY RESPONSES
Private Sector eco-design and eco-labels
Electrolux (Sweden)
The biggest environmental impacts rom appliances
occur during the use phase. Developing and selling
energy and water ecient appliances is thereore
the most important contribution Electrolux can make
to meet the climate challenge. Electroluxs 2009 tar-
get to reduce energy use in operations by 15% com-
pared to 2005 was exceeded, and it is now aiming
at more stringent target o reducing energy use by
close to 30% by 2012 compared with 2005.
Philips digital Dictaphone (The Netherlands)
A good example o product eco-design is Philipsnew Digital Pocket Memo 9600/9620. Its lie cycle assessment was
carried out in accordance with ISO 14040, and signicant energy savings were realized due to interaction o state-o-the-art components and an improved rmware and energy management. The new model allows up to 17 hours o dictation
without recharging the batteries. The possibility to charge the rechargeable batteries by connecting the device to a USB
helps to reduce Standby Energy consumption. The LCA shows signicant reduction in Global Warming Potential (GWP):
depending on the mode o operation, up to 86.1% reduction is possible in comparison to the previous model.
Voluntary Green Standards (US)
The Electric Utility Industry Sustainable Sup-
ply Chain Alliance has developed a set o vol-untary standards which dene best practices
to help non-uel suppliers assess the environ-
mental perormance o their companies and
utilities, and the environmental perormance
o their supply chain operations. The Alliance
is also developing voluntary environmental
standards or products and services pur-
chased by electric utilities, starting with wood
poles, transormers, and wire and cable.
Diageo (Nigeria)Two decades ago, all the grain or Diageos breweries in Arica was
imported. The imports required precious oreign currency and rep-
resented a lost business opportunity or local armers. Diageo joined
a project to develop the cultivation o a beer-riendly variety o sor-
ghum in Nigeria. The project identied a usable sorghum cultivar
and trained armers to grow the crop. Sorghum armers reported
a 35-50% increase in yield rom their land. Today, Diageo brewer-
ies in Nigeria source 95% o their grain rom local arms, sustaining
around 27,000 jobs. Diageo is a signatory to the UNDPs Business
Call to Action (BCtA) which seeks to accelerate progress toward the
achievement o the Millenium Development Goals by encouraging
private sector investment in base o the pyramid markets.
The Green Label Scheme (Thailand)
The Thai Green Label Scheme was initiated by the Thailand Busi-
ness Council or Sustainable Development and ormally launched
in August 1994 by the Thailand Environment Institute and the Min-
istry o Industry. The Green Label certicate is awarded to prod-
ucts that are shown to have minimum detrimental impact on the
environment in comparison with other products serving the same
unction. More than 137 products in 18 categories have received
the Green Label certicate.
AkzoNobel (The Netherlands)
AkzoNobel is the largest global paints and
coatings company. AkzoNobel is now partner-
ing with maritime classication society Lloyds
Register to introduce Chinas largest shipyards
to the Perormance Standard or ProtectiveCoatings (PSPC), oering shipyards step-by-
step advice on how to go about meeting the
requirements o the new standard. They are
advising the shipping industry on, or exam-
ple, antiouling coatings which make shipping
more ecient by preventing organisms such as
barnacles and weed rom building up on the
underwater hull, slowing the ship and decreas-
ing uel eciency. It is estimated that the use
o antiouling coatings saves the shipping
industry around US$30 billion and reduces
CO2 and SO2 emission levels.
Sustainable Palm Oil Roundtable (Indonesia)
The Sustainable Palm Oil Roundtable, a non-or-prot
organization, develops standards or sourcing sustain-
able palm oil in what is both a highly important indus-
try or developing economies and, currently, one that is
highly destructive o tropical orests. Vegetable oil pro-
duction worldwide totals 95 million tonnes per year, o
which over 28 million tonnes is palm oil, the worlds sec-
ond largest oil crop ater soy oil.
http://www.electroluxappliances.com/aboutushttp://www.ecodesign-company.com/documents/EPD-9600-9620.pdfhttp://www.euissca.org/VoluntaryStandards/Forms/AllItems.aspxhttp://www.diageo.com/CSR/Pages/default.aspxhttp://www.tei.or.th/greenlabel/http://www.akzonobel.com/http://www.rspo.org/http://www.diageo.com/CSR/Pages/default.aspxhttp://www.electroluxappliances.com/aboutushttp://www.ecodesign-company.com/documents/EPD-9600-9620.pdfhttp://www.rspo.org/http://www.euissca.org/VoluntaryStandards/Forms/AllItems.aspxhttp://www.tei.or.th/greenlabel/http://www.akzonobel.com/ -
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POLICY AND VOLUNTARY RESPONSES
Capacity Building and Tools
Responsible Environmental Market-ing Communications (Global)
To help marketers and advertisers avoid the
mistakes o vague, non-specic or mislead-
ing environmental claims, the InternationalChamber o Commerce has produced a glo-
bal Framework or Responsible Environmen-
tal Marketing Communications. The rame-
work includes a practical checklist aimed at
the creators o marketing communications
campaigns, as well as a chart that provides
an easy reerence to relevant provisions o
the global advertising code and oers more
detailed interpretations on current issues
related to environmental marketing.
UNIDO/UNEP Cleaner Production Centers (Global)
UNIDO in cooperation with UNEP started, in 1994, to set upNational Cleaner Production Centers and Programs. Since
then, 43 centers and programs have been established in
developing and transition countries, with others in the plan-
ning stage. The centers and programs train enterprise lead-
ers in cleaner production helping them to adopt and adapt
practices to local conditions. The programs also aim to oster
dialogue between industry and government and enhance
investments or transer and development o environmen-
tally sound technologies to bridge the gap between com-
petitive industrial production and environmental concerns.
With the program, costly end-o-pipe pollution control sys-
tems are gradually replaced with a strategy that reduces and
avoids pollution and waste throughout the entire productioncycle, rom ecient use o raw materials, energy and water
to the nal product. Successul programs have been imple-
mented in, or example, Bulgaria, Cambodia, Costa Rica,
Cuba, India, and Nicaragua.
Education or sustainableconsumption (Global)
Considering the role o education
as a key instrument to achieve sus-
tainable development, Italy set up
an international task orce on edu-
cation or sustainable consumption.
Under the Marrakech Process it has
produced a set o recommenda-
tions and guidelines to introduce
education or sustainable consump-
tion in the ormal education sector.
Education on sustainable small-scale arm-ing (The Netherlands)
Learning AgriCultures is a learning resource
particularly useul or educators seeking sup-port material or explaining about sustainable
agriculture in their courses, at a university or
college level, in special NGO training courses or
elsewhere. The series aims to stimulate learning
about sustainability issues or small-scale armers
through a systems thinking perspective.
E-textile toolbox (Vietnam and India)Partner organizations rom Asia and Europe have joined hands to develop an
on-line toolbox to help make textile production more ecient, reduce pro-
duction costs, improve product quality and achieve a better environmental
perormance. The integrated toolbox consists o an on-line capacity build-
ing module to acquire competitive knowledge, a perormance management
tool and a catalogue o technical solutions and examples o their application.
Sustainable livelihoods(Asia and the Pacifc)
Green Growth is a policy ocus or Asia and thePacic that emphasizes ecologically sustainable
economic progress to oster low-carbon, socially
inclusive development. There has been an increas-
ing number o requests or capacity development
assistance rom governments in the region. To
meet such needs, the UN Economic and Social
Commission or Asia and the Pacic (ESCAP) has
designed a unique training package on Green
Growth policy tools or the area. This tool has
evolved to emphasize the Sustainable Livelihoods
approach (SLA). ESCAPs Training o Trainers (TOT)
Programme works to assist in building individualand organizational capabilities to ensure Green
Growth goals can be dened and realized at the
national level. By engaging internal and external
expertise in trainings, the programme increases its
value-added. Training is targeted towards middle-
level government managers, ministerial ocials,
private-sector decision makers, NGOs, academ-
ics and other actors, i.e. all stakeholders involved
in the countrys transition to green growth. The
method emphasizes new orms o training such as
group exercises, brainstorming, case studies and
role playing amongst others.
Food and Beverage Industry
(Sri Lanka)The SWITCH ASIA programme ocuses on sus-
tainable consumption and production (SCP)
and directly contributes to sustainable growth
and the ght against poverty in Asia. The Food
& Beverage industry is a very important sector
o Sri Lankan economy that contributes around
10% o GDP and generate an annual export rev-
enue o US$1.4 bn. This project, under SWITCH
ASIA, improves the environmental perormance
o the Food & Beverage sector through promo-
tion o best practices o sustainable production
among Small and Medium Enterprises.
http://www.iccwbo.org/policy/marketing/index.html?id=34587http://www.iccwbo.org/policy/marketing/index.html?id=34587http://www.unido.org/index.php?id=o5134http://esa.un.org/marrakechprocess/tfedususconsump.shtmlhttp://esa.un.org/marrakechprocess/tfedususconsump.shtmlhttp://ileia.leisa.info/index.php?url=show-blob-html.tpl&p%5bo_id%5d=238709&p%5ba_id%5d=237&p%5ba_seq%5d=0http://ileia.leisa.info/index.php?url=show-blob-html.tpl&p%5bo_id%5d=238709&p%5ba_id%5d=237&p%5ba_seq%5d=0http://www.e-textile.org/http://www.greengrowth.org/capacity_building/Download/GG_capacity_development/Green_Growth_Capacity_Development_Brochure-resized.pdfhttp://www.greengrowth.org/capacity_building/Download/GG_capacity_development/Green_Growth_Capacity_Development_Brochure-resized.pdfhttp://www.chamber.lk/switchasia/http://www.chamber.lk/switchasia/http://www.chamber.lk/switchasia/http://www.iccwbo.org/policy/marketing/index.html?id=34587http://ileia.leisa.info/index.php?url=show-blob-html.tpl&p%5bo_id%5d=238709&p%5ba_id%5d=237&p%5ba_seq%5d=0http://www.e-textile.org/http://www.unido.org/index.php?id=o5134http://esa.un.org/marrakechprocess/tfedususconsump.shtmlhttp://www.greengrowth.org/capacity_building/Download/GG_capacity_development/Green_Growth_Capacity_Development_Brochure-resized.pdf -
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POLICY AND VOLUNTARY RESPONSES
CONSUMER-CITIZENS
National Geographic and GlobeScan have launched a quantitative con-
sumer study o 17,000 consumers in a total o 17 countries (14 in 2008) ask-
ing questions about such behavior as energy use and conservation, trans-
portation choices, ood sources, the relative use o green products versus
traditional products, attitudes towards the environment and sustainability,
and knowledge o environmental issues. These are the behaviors that weremost critical to investigate based on a group o international experts. A
composite measure o environmentally sustainable consumption called
the Greendex was developed to score each respondent based on the
consumption patterns s/he reports in the survey, and com