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Decoupling 2 Technologies, Opportunities and Policy www.unep.org United Nations Environment Programme P.O. Box 30552 Nairobi, 00100 Kenya Tel: (254 20) 7621234 Fax: (254 20) 7623927 E-mail: [email protected] web: www.unep.org DECOUPLING 2 TECHNOLOGIES, The followingOPPORTUNITIES is an excerpt AND of the report POLICY OPTIONS decoupling natural resource use and environmental impacts from economic growth Produced by the International Resource Panel This document highlights key findings from the report and should be read in conjunction with the full report. References to research and reviews on which this report is based are listed in the full report. The full report can be downloaded from www.unep.org. If you are reading a hardcopy, the CD-Rom can be found in the back cover. Additional copies can be ordered via email: [email protected], or via post: United Nations Environment Programme Division of Technology Industry and Economics, 15 rue de Milan, 75441 Paris CEDEX 09, France www.unep.org United Nations Environment Programme P.O. Box 30552 Nairobi, 00100 Kenya Tel: (254 20) 7621234 Acknowledgements Fax: (254 20) 7623927 E-mail: [email protected] web: www.unep.org Editor: International Resource Panel The following is an excerpt of the report Working Group on Decoupling Lead Authors: Ernst Ulrich von Weizsäcker (lead coordinating author), Jacqueline Aloisi de Larderel, Karlson ‘Charlie’ Hargroves, Christian Hudson, Michael Harrison Smith, and Maria Amelia Enriquez Rodrigues. Contributors: Anna Bella Siriban Manalang, Kevin Urama, Sangwon Suh, Mark Swilling, Janet Salem, Kohmei Halada, Heinz Leuenberger, Cheryl Desha, Angie Reeve, David Sparks. decoupling The report went through a peer-review process coordinated by Maarten Hajer, together with the International Resource Panel Secretariat. The authors thank the anonymous peer reviewers for their constructive comments. Special thanks go to Ashok Khosla as Co-Chair of the International Resource Panel for his dedication and commitment, natural resource use and 2 as well as to the members of the International Resource Panel and its Steering Committee for their constructive comments. environmental impacts The Secretariat of the International Resource Panel coordinated the preparation of this report with the support of Shaoyi Li, Tomas Marques, Lowri Rees and Caroline Freier. from economic growth The main responsibility for errors remains with the authors. Produced by the International Resource Panel Copyright © United Nations Environment Programme, 2014 This document highlights key findings from the report and should be read in This publication may be reproduced in whole or in part and in any form for educational or nonprofit purposes without special permission from the copyright holder, provided acknowledgement of the source is made. conjunction with the full report. References to research and reviews on which this report is based are listed in the full report. UNEP would appreciate receiving a copy of any publication that uses this publication as a source. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the United Nations Environment Programme. The full report can be downloaded from www.unep.org. If you are reading a hardcopy, the CD-Rom can be found in the back cover. Additional copies can be Design/layout: William Orlale - DCPI, Nairobi ordered via email: [email protected], or via post: United Nations Environment Printed by: UNON / Publishing Section Services, Nairobi ISO 14001:2004-certified Programme Division of Technology Industry and Economics, 15 rue de Milan, Cover photos ©: TonyV3112 & bibiphoto / Shutterstock.com 75441 Paris CEDEX 09, France Disclaimer The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country, territory, city or area or of its authorities, or concerning delimitation of its frontiers or boundaries. Moreover, the views expressed do not necessarily represent the decision or the stated policy of the United Nations Environment Programme, nor does citing of trade names or commercial processes constitute endorsement. technologies, opportunities technologies, and policy options 2 UNEP (2014) Decoupling 2: technologies, opportunities and policy options. A Report of the Working Group on Decoupling to the International Resource Panel. von Weizsäcker, E.U., de Larderel, J, Hargroves, K., Hudson, C., Smith, M., Rodrigues, M. UNEP promotes environmentally sound Job Number: DTI/1795/PA practices globally and in its own ISBN: 978-92-807-3383-9 activities. This report is printed on paper from sustainable forests including decoupling recycled fibre. The paper is chlorine free II and the inks vegetable-based. decoupling Our distribution policy aims to reduce UNEP’s carbon footprint. www.unep.org United Nations Environment Programme P.O. Box 30552 Nairobi, 00100 Kenya Tel: (254 20) 7621234 Fax: (254 20) 7623927 E-mail: [email protected] web: www.unep.org DECOUPLING 2 TECHNOLOGIES, The followingOPPORTUNITIES is an excerpt AND of the report POLICY OPTIONS decoupling natural resource use and environmental impacts from economic growth Produced by the International Resource Panel This document highlights key findings from the report and should be read in conjunction with the full report. References to research and reviews on which this report is based are listed in the full report. The full report can be downloaded from www.unep.org. If you are reading a hardcopy, the CD-Rom can be found in the back cover. Additional copies can be ordered via email: [email protected], or via post: United Nations Environment Programme Division of Technology Industry and Economics, 15 rue de Milan, 75441 Paris CEDEX 09, France IV 2 technologies, opportunities technologies, and policy options 2 decoupling decoupling Contents List of figures and tables VIII Abbreviations and acronyms X Preface XII Foreword XIV Executive Summary 2 1 Changes in Resource Use and Scarcity 20 1.1 The drivers of changes in resource use 21 1.1.1 Population 21 1.1.2 Income 21 1.2 Future trends in these drivers of resource use 21 1.2.1 Implications for resource demand 22 1.3 The Consequences of increasing resource use 23 1.3.1 Increasing resource prices 23 1.3.2 Increased price volatility and price shocks 24 1.3.3 Increasing resources scarcities 25 1.3.4 Increased disruption of environmental systems 27 1.4 Why these problems appear unlikely to be solved by a “leave it to the market approach.” 29 1.4.1 The scale and rate of change often outpaces the supply side response 29 1.4.2 Historically, growth in developed countries has used resources from other countries 29 1.4.3 Declining ore grades and impacts on other resources 30 1.4.4 Linkages between energy production, water, resources and food 31 1.4.5 Tipping points, sudden or irreversible declines 32 1.4.6 Many of the essential resources are not accurately priced by the market 32 2 Responding to Change 34 2.1 Strategic implications of trends in resource use 34 2.1.1 A changing basis of competitive economic advantage 34 2.1.2 Potential advantages for developing countries 35 2.1.3 Risks of disruption to existing economic growth patterns 36 2.2 Decoupling as a response 37 2.2.1 What is decoupling? 37 2.2.2 Choices involved in decoupling 38 2.2.3 The “‘rebound effect”’ from resource productivity gains 39 2.2.4 Choosing decoupling is an active choice 39 3 Technological Responses Allowing Significant Decoupling 42 3.1 The widespread opportunity 43 3.2 Technologies to save energy 44 3.2.1 Technologies directly reducing fossil fuel consumption 45 3.2.2 Technologies directly saving electricity in industry 46 3.2.3 Technologies for reducing fossil-fuel demand in transportation: trucks and ships 48 3.2.4 Technologies for reducing fossil-fuel demand in transportation: rail and road passengers 49 3.3 Technologies saving metals and minerals 50 3.3.1 Steel end use in construction 50 3.3.2 Reduction in metal use 51 3.3.3 Saving materials from waste streams 53 V 3.4 Technologies saving freshwater and biotic resources 54 3.4.1 Technologies saving freshwater extraction 54 3.4.2 Technologies protecting soil fertility 56 3.4.3 Technology- saving biotic resources 57 3.4.4 Combinations of technologies 58 4 What currently holds back decoupling? 60 4.1 Introduction 60 4.2 Growth, development and transition 60 4.3 Cycles of Growth and Transition 61 4.4 Innovative capacity 62 4.5 Bias in innovation investment decisions 62 4.6 The legacy policy framework 63 4.7 Biases against investment in innovation 66 4.7.1 Physical and technological biases 66 4.7.2 Behavioural biases 66 4.7.3 Organisational – including biases against finance for resource productivity 67 4.7.4 Other institutional norms, including short-term incentives 68 2 4.8 Inertia in political systems and systems lock-in 68 5 Deepening understanding about the nature of decoupling 72 5.1 Burden shifting – or ‘decoupling through trade’ 72 5.2 Understanding the drivers behind decoupling 73 5.3 Decoupling what matters 74 6 Facilitating Transition: Removing barriers to decoupling 78 6.1 Decoupling can happen 78 6.2 Case studies of decoupling 79 6.2.1 Decoupling economic growth from freshwater extraction 79 6.2.2 Decoupling in Australia 79 6.2.3 Decoupling in Singapore 80 6.2.4 Decoupling economic growth from air pollution 81 6.3 Decoupling resource use across a whole economy 82 6.3.1 The challenges for decoupling 82 6.3.2 Multi-level
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