1.Sustainable Consumption and Production Poverty Alleviation andClimate Change Climate Change & the Challenge of Poverty Alleviation 26 - 28 July, 2012Centre 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

2. Sustainable consumption andproduction Distributed and interdependent innovationtowards sustainability: systems of provisionand consumption Sustainability AND growth versussustainability as a restriction ofconsumption, localisation, etc. Collective and political choices ratherthan individual moral or market choice Triangular affairs (state and market actors,consumer organisations/groupings) atleast. 3. INTERLOCKING CHALLENGES AND CRISESPeak petro-Global climate changechemicals Socio-economic welfareBiodiversity Food crisesLand use + water 4. What are we talking about? Consuming and producing more efficiently and differently ... and sharingresources betweenthe rich and the poor. 5. Global UN contextof SCP and resource use JPoI - Chapter II: Poverty Eradication Resource use contributing to MDGs JPoI - Chapter III: SustainableConsumption and Production 10 year framework on SCP/Marrakech Process/ CSD 2010-2011 6. 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 7. The State of the PlanetResource Depletion - Freshwater Access to water is arguably the worlds most urgent resourceissue 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-highwater stress By 2025 more than 4 billion people will be living in water stressedcountries 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 havebecome 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 8. The State of the Planet Population Growth 9. The State of the PlanetPopulation Growth, Consumption and Production Population is not the main problem ofenvironmental degradation, but ratherconsumption and production patterns There is a need to find an appropriate balancebetween: The basic needs of the current population (food,shelter, health, clothing) The needs of future generation This requires balancing inter- and intra-generationequity 10. The State of the PlanetUnsustainable Consumption1000 people harm the environment annually by the following factorIn Germany Developing Country Energy consumption (TJ) 158 22 Greenhouse gases (t)137001300 CFCs (Kg)450 16 Waste (t)400120Toxic waste (T) 187 2Passenger cars443 6Steel consumption 655 5 11. The State of the Planet Inequalities in Consumption 1.3 billion people live on less than 1 US dollar aday The overall consumption of the richest fifth of theworlds population is 16 times that of the poorest fifth Nearly 160 million children are malnourished More than 880 million people lack access to healthservices 1.5 billion lack access to sanitation and clean water 12. The State of the Planet Unsustainable ConsumptionGlobal Consumer Class: Selected Nations (2002) Consumers Share of NationalCountry(millions)Population (%)United States 243 84Japan 121 95Germany 7692Russian Federation6143Brazil5833China 240 19India 122 12 13. The State of the PlanetCar Growth in ChinaYearPrivate cars1980 02000 5 million200210 million200314 million2015150 million (estimated) 14. The State of the PlanetEcological Footprints 15. The State of the Planet Consequences: Four Earths needed in 21001900 2003 2050 2100 16. Mixed messages from consumersId 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 latestmobile phone, and watch my brand new DVD 17. The State of the Planet The need for increased resource efficiency 20% of the worlds 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 FootprintResource 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 18. The State of the Planet The implementation gapFundamental 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 19. The State of the Planet Factor Four improvementsBusiness shifts for naturalcapitalism 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 20. 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 gainsachieved through cleaner production and eco-efficiency measuresare being overtaken by the overall increases in productionassociated with growing consumption patterns While problems of production process are understood, there isgenerally an important gap of understanding in terms of theconsumption (use) and disposal of products Environmental concerns are not sufficiently integrated into economicand social programmes and vice versa 21. The State of the PlanetThe ChallengePromoting sustainable consumption and production New product-oriented strategies (life cycle perspective, design andmanufacture) Understanding consumption Integrated approach of sustainable consumption and production De-linking environmental damage from economic growth 22. The State of the Planet There is noSustainable Consumption without Sustainable Production and vice versa 23. So what has been the responseof the corporate sector to theglobal environmental challenges? 24. Improvement in environmental quality Rethink Redesign Incremental change Lowhanging fruit Long investment time in R&DTime From Arthur D Little - Sustainable Industrial Development 1996 25. A Brief History of Corporate EnvironmentalismBroad Phases of Corporate Environmentalism Before the 1960s: Blissful Ignorance 1960s and 1970s: Confrontation / ReluctantCompliance 1980s: Beyond Compliance 1990s: Changing Course Beyond 2000: Sharing Responsibility? 26. Evolving Business Behaviouron Sustainability Issues 27. Evolving Business Behaviouron Sustainability Issues 28. A Brief History of Corporate Environmentalism1960s and 1970s - Reluctant Compliance Growing public consciousness about the naturalenvironment Publication in 1964 of Rachel Carsons Silent Spring 1970 Earth Day demonstrations Publication in 1972 of the Club of Romes Limits to Growth and The Ecologists 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 29. A Brief History of Corporate Environmentalism1980s Beyond Compliance Increasing pressure to improve performance: Major industrial incidents: Bhopal accident (India, 1984) andSandoz chemical spill (Switzerland, 1986) Brundtland Report in 1987 put the concept of sustainabledevelopment squarely into the international policy arena Business began to: Develop environmental policies with specific performancecommitments Appoint dedicated staff functions, and increase line managementintegration of environmental and social responsibilities Implement pollution prevention and cleaner production techniques Undertake greater networking with other companies onenvironmental and social issues (eg chemical industrysResponsible Care initiative) Develop tools such as environmental audits 30. A Brief History of Corporate Environmentalism1990s Changing Course Increasing international policy action on environmental andsustainable development issues Rio Earth Summit in 1992 Growing number of Multilateral Environmental Agreements (egthe UN Framework Convention on Climate Change) Business response signified by institutionalisation andinnovation Launch of the ICC Business Charter in 1991 Formation of World Business Council on SustainableDevelopment Development of ISO 14000 environmental standards Increase in environmental and social reporting practices Development of innovative technological solutions, as well astools such as life cycle assessment, design for environment &product stewardship 31. A Brief History of Corporate EnvironmentalismBeyond 2000 Walking the Talk? Key strategic trends impacting globalcompanies 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 32. Corporate Environmentalism: Strategic TrendsGrowing NGO and consumer pressure for accountability 33. 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 34. 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 LawyerAustralian July 14 launch of Climate Justice Program, alliance of 70 NGOs,lawyers, academics and individuals in 29 countries that seeksenforcement of existing laws to hold the perpetrators of climate damageaccountable and liable.Australia Climate Action Network Australia notified directors of the top 200listed companies of financial risks and legal obligations of climatechange. Targeted major GHG emitters, as well as property financiers.Companies expected to respond by undertaking risk assessment ofclimate change exposure.USA Eight US States and New York City launched a public nuisance lawsuitagainst five of the USs largest power companies 21 July 2004. 35. Corporate Environmentalism: Strategic TrendsIndicators of the next wave of corporateresponsibility Sustainability reports Strategic partnerships Participation of financial markets Academia and education Media 36. 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 37. Corporate Sustainability: An ideal company?Corporate Sustainability: Features of an ideal company? Integrates environmental and social issues into its corestrategy Quantifies the social and environmental costs of itsactivities Displays innovation throughout the full life cycle of itsproducts and services Implements sound corporate governance practices Is committed to transparency and accountability Promotes meaningful change amongst its peers, within itsneighbouring communities, and throughout its supply chain 38. Resource Efficiency defined Efficiency at economic level +Environmental dimension =Resource Efficiency (RE)(materials, energy, water, land & emissions) Reducing the environmental impact of consumption and productionof 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 theecological carrying capacity of the Earth. Resource Productivity: having more value creation per resource unit(similar to Labour Productivity) innovation needs to directed in thatdirection 39. and global value chains ?DisposalUseRecyclingReuse ProductionResources ?ResourceExtraction ? 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. 40. International and nationalinitiatives on resource use OECD has developed a programme on MaterialFlows and Resource Productivity G8 countries, spearheaded by Japanare implementing the Kobe action plan of the3R initiative aimed at reducing, reusing andrecycling resources. European Commission has launched itsThematic Strategy on the Sustainable Use ofNatural Resources. In addition, there are numerous nationalstrategies aimed at closing the loop, includingChinas circular economy approach. 41. Global scientific activitiesin relation to resource use IPCC Climate Change due to fossil fuels Impacts due to use of other resources thanfossil fuels? Millennium Ecosystem Assessment Linkages from observed impacts on ecosystems to unsustainable resource use? 42. Focus on selected nonfossil material flows Decouplingand Resource -efficiency Consumption and productioninduced material flowsRenewable resourcesFlow resourcesNon-renewable resourcesFood Non- FoodAir, Soil, Sun, Water MineralsFossil and Metals FuelsBiofuelsGlobal (vs. fossil Freshwater Metal fuels) Flows 43. and their environmentalimpact Source: Adapted from N&M 44. 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 45. Recycling as one wayforward 46. Metals required ineco-innovation 47. Data for LCAThree sources: Industry data (provided by companies and industryassociations) Unit process data (modeling of resource requirementsbased on information on technologies used) Data derived from Input-Output tablesUNEP/ SETAC Database registry: Aiming at being a focal point for information aboutinternational, sectoral, national, commercial and noncommercial databases worldwide User survey (autumn 2008) showed that the databaseregistry concept meets the needs of many users. Addressing different data sources in general,among those the ELCD/ ILCD system, Japanese LCAdatabase, and many others, including I/O data. 48. Impact Assessmentindicators and methods Resource Other Env. Efficiency PrioritiesEnergy EnergyClimate CarbonDemand ChangeFootprint(IEA)(WRI/ WBCSD, ISO)WaterWater Hazardous USEtoxFootprintSubstances(SETAC)(WWF/ WFN)Material Materials Ecosystems BiodiversityIntensityBiodiversity Damage(WI) (IUCN) 49. REEO: Resource Efficiency andEconomics Outlooks I Project ongoing for following regions: Asia Pacific Latin America and the Carribean: Mercosur andMexico Objective of reports: Give convincing evidence to decision makers thatResource Efficiency policies and measures arereally needed to support sustainable economicdevelopment. To do this, each report shouldexplain first the concept of resource efficiency, therelated policy decision making and then give anoverview of the resource efficiency challenges inthe region. 50. REEO: Resource Efficiency andEconomics Outlooks II Outline: Resource Efficiency and EconomicsWhat is It?Why is It Important? And how to assess it? (at themacro-, meso- and micro-level) Assessment and Trends of Resource Efficiencyand Economics in the Region (materials, energy,water, land, emissions) Fostering Resource Efficiency and Economics inthe Region (investments) Policy relevant conclusions for the implementationof Resource Efficiency at the national level in theRegion (targets, monitoring, policy instruments) The Role of Regional and International Initiatives Perspectives (win-win solutions) 51. UNEP Resource Efficiency andProductivity Data Scoping Workshop Support the science base of UNEPswork on resource efficiency by establishing access to relevant databases, contributing to the inclusion of relevant datain the GEO Data Portal building capacity in developing countries onthe collection of relevant data Influencing processes such as UNCEEA sothat adequate raw data for ResourceEfficiency and Productivity are collected 52. Towards an International virtual datacentre on Resource Intensity The establishment of an international virtualdata centre on the resource intensity ofproducts and services is urgently needed, to monitor the success of strategies and measuresto increase resource productivity, on the macro-economic level and the level of companies andproduct-service-systems including the customersand consumers activities. to satisfy increasing demand by policy-makers,businesses and consumers on consistent andvalidated data to enable directionally-safe decision-making towardsa more sustainable development Compatibility and integration with other keyindicators for life-cycle wide assessments,such as those mentioned above. 53. Perspectives for the future:Consumption, products and resources 54. 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, resourceand emission productivity between countries? Monitoring : What factors caused decoupling ofimpacts and economic activity in the past?needs time series Foresight and scenario analysis: How will thefuture look like? needs dynamic models linked to database 55. Ref: http://.....