green commodities: a market-based approach to sustainable development

United Nations Development Programme

Regional Centre in Bangkok

Green Commodities

A Market-Based Approach to

Sustainable Development

Joseph D’Cruz

Regional Advisor, Environment and Sustainable

Development

UNDP



The Global Commodity Sector

Scope and Scale:

– Largest employer,

largest source of GDP,

largest source of

exports and foreign

exchange for most

developing countries



Agriculture in Developing

Economies (1997)



Commodity Production In Asia

and the Pacific



Benefits of Agricultural

Commodity Production

Growth

Incomes

Poverty Alleviation



The Environmental Costs:

Pollution

Deforestation

Environmental Degradation

Loss of Biodiversity and Natural

Resource Base



The Social Costs:

Health and poor working conditions

Exploitation of workers (including

women and children)

Loss of land tenure

Loss of environmental resources from

forest conversion



Why it matters to us:

The UNDP Mandate

The UN System’s primary

development agency

Sustainable Human Development

The Millennium Development

Goals



Development assistance as a

solution

Poverty alleviation projects

Alternative livelihoods

Environmental conservation projects

Health, education, etc.



The alternative approach:

Leveraging the power of markets

Integrating sustainability into

commodity production

Catalyzing markets for premium

sustainably-produced ‘Green’

commodities



Examples:



What we’re doing: The Green Commodities Facility



Advantages

Sustainable

Profitable

Environmentally- and Socially-

beneficial

Market access and market positioning



GCF: Country Programmes

National platforms delivering policy development

and technical advice for green commodities within

target countries.

In Thailand:

– Rice

– Shrimp

– Bamboo

– Sugar



GCF Support

Extension Services

Innovative financing mechanisms

Reviewing carbon footprints of

supply chains

Information sharing

Scale up of pilots

Assist governments in land use

planning for agricultural

commodities (including forestry).

Technical assistance and training to

farmers and businesses

Provision of credit and financial

services through partnerships with

financial institutions

Reform of policies and regulations

Verification of achievement of

environmental and social practices

Increasing access to markets



Thank You

[email protected]

green commodities: a market-based approach to sustainable development

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