Green Growth,

Green Growth, Resources and Resilience Green Growth,

Green Growth, Resources and Resilience Resources Resourcesand Resilience This report—Green Growth, Resources, and Resilience—describes an evolving policy landscape and Resilience characterized by a changing economic reality, rising demand for resources, increasingly Green Growth, apparent impacts of environmental and climate change, and increased risk and uncertainty. The report provides new insights into Asian and Pacific resource use trends and outlines Green Growth, Resources and Resilience Green EnvironmentalGrowth, Sustainability key actions, including reforming economic incentives and promoting more inclusive and Environmental Sustainability adaptive governance approaches, that governments can pursue to help bring economic Resourcesin Asia and inthe Asia Pacific and the Pacific growth strategies in closer alignment with the objective of sustainable development. It also Green Growth, Resources and Resilience: provides examples of strategies for improving resilience to help deal with the increasing levels Resources of risk faced by societies and economies. and Resilience The report is the product of a combined effort by three institutions: the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the Asian Development Bank (ADB) and and Resilience the United Nations Environment Programme (UNEP). It is the sixth in a series of reports prepared Environmental Sustainability by ESCAP for successive Ministerial Conferences on Environment and Development in Asia and Environmental Sustainability the Pacific, and is the third in ADB’s Asian Environment Outlook series. It is also in line with the in Asia and the Pacific mandate of UNEP to keep the state of the environment under review. in Asia and the Pacific The report provides timely support to policymakers and other stakeholders as they prepare for the 2012 United Nations Conference on Sustainable Development (Rio +20) and as they continue work to address persistent and emerging challenges on their way to more sustainable development. Environmental in Asia and the Pacific Sustainability Environmental Sustainability in Asia and the Pacific Environmental Sustainability in Asia and the Pacific Environmental Sustainability in Asia and the Pacific

United Nations and Asian Development Bank publication Printed in Bangkok ISBN 978-92-1-120635-7 February 2012 – 750 ESCAP promotes regional cooperation for inclusive and sustainable economic and social development in Asia and the Pacific, a dynamic region characterized by growing wealth, diversity and change, but also challenged with persistent poverty, environmental degradation, inequality and insecurity. ESCAP supports member States with sound strategic analysis, policy options and technical cooperation activities to address key development challenges and to implement innovative solutions for region-wide economic prosperity, social progress and environmental sustainability. ESCAP, through its conference structure, assists member States in forging a stronger, coordinated regional voice on global issues by building capacities to dialogue, negotiate and shape the development agenda in an age of globalization, decentralization and problems that transcend borders. A key modality for this strategy is the promotion of intraregional connectivity and regional integration.

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. More information can be found at http://www.adb.org.

UNEP is the United Nations system’s designated entity for addressing environmental issues at the global and regional level. Its mandate is to coordinate the development of environmental policy consensus by keeping the global environment under review and bringing emerging issues to the attention of governments and the international community for action. UNEP’s mission is to provide leadership and encourage partnership in caring for the environment by inspiring, informing and enabling nations and peoples to improve their quality of life without compromising that of future generations. UNEP’s headquarters are in Nairobi, Kenya, and it has six regional offices around the world. It is one of only two UN programmes headquartered in the developing world. In Asia and the Pacific, UNEP works in 46 countries through its Regional Office for Asia and the Pacific located in Bangkok, Thailand. More information can be found at:http://www.unep.org. Green Growth, Resources and Resilience

Environmental Sustainability in Asia and the Pacific Green Growth, Resources and Resilience Environmental Sustainability in Asia and the Pacific United Nations and Asian Development Bank publication ST/ESCAP/2600, RPT124260 Printed in Bangkok 2012

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 Secretariat of the United Nations, the Board of Directors of the Asian Development Bank (ADB), the Board of Governors of ADB or the governments they represent concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries.

The content and views expressed in this publication are those of the authors and do not necessarily reflect the views or policies or carry the endorsement of the co-publishing organizations. Reference to a commercial entity or product in this publication does not imply endorsement.

The co-publishing organizations do not guarantee the accuracy of the data included in this publication and accept no responsibility for any consequence of their use.

All queries can be addressed to any of the co-publishing organizations as follows:

Director Director Regional Director Environment and Environment and Safeguards United Nations Environment Development Division Regional and Sustainable Programme United Nations Economic and Development Department Regional Office for Asia Social Commission for Asia Asian Development Bank and the Pacific and the Pacific 6 ADB Avenue United Nations Building United Nations Building Mandaluyong City, Rajadamnern Nok Avenue Rajadamnern Nok Avenue Metro Manila 1550, Philippines Bangkok 10200, Thailand Bangkok 10200, Thailand [email protected] [email protected] [email protected]

This publication follows the United Nations practice in references to countries. Where there are space constraints, some country names have been abbreviated. In the Asian Development Bank, China is referred to as the People’s Republic of China and Kyrgyzstan is referred to as the Krgyz Republic.

Also available online at: www.unescap.org/esd/environment/flagpubs/GGRAP www.adb.org/Environment/ www.unep.org/roap

ISBN 978-92-1-120635-7 e-ISBN 978-92-1-055184-7

This publication was printed on chlorine and acid-free paper made from agro-waste, recycled and virgin ii fibres, with a water-based coating and using vegetable inks. Foreword The Asia and Pacific region faces a new economic reality, a development context that is increasingly influenced by resource constraints and growing risks. In recent years, convergent economic and environmental challenges have had dramatic impacts on millions of people, threatening continued progress toward reduction of poverty and hunger. High food, energy and commodity prices, persistent income inequality, and climate and environmental changes overshadow the regional outlook.

These storm clouds come with a tantalizing silver lining. Asian and Pacific countries have made “green” policy commitments and investments that just five years ago would have been unimaginable. This nascent transformation is marked by perceptible changes in awareness, attitudes, markets and technologies, making green growth and transition to a green economy more economically and politically feasible than ever before.

Green growth strategies can help economies and societies become more resilient as they work to meet demands for food production, transport, housing, energy and water. Strategies can help mitigate the impacts of adverse shocks by reducing the intensity of resource consumption and environmental impacts, while alleviating pressure on commodity prices. Green growth also offers competitive advantages to those countries that commit to policy innovations. The global market for green goods and services is vast and growing fast, offering countries the dual benefit of prosperity and job creation.

To take advantage of these opportunities, long-term solutions require policy initiatives to transform economies, building on already important initiatives in many countries. Economies must be recalibrated so that economic growth is directly aligned with sustainable development objectives. The need for new infrastructure investment in the region presents opportunities for planners and policymakers to design, build, and operate infrastructure on principles of sustainability, including accessibility and social inclusiveness.

Governments must play their part, enabling the private sector to seize emerging opportunities while also engaging the public in finding effective and equitable solutions that are adapted to the special circumstances and needs of each country and community. Governance approaches that emphasize inclusiveness and adaptability, as well as regional cooperation, are critical requirements for any transition.

Reflecting a common view that action is urgently needed, the United Nations Economic and Social Commission for Asia and the Pacific, the Asian Development Bank and the United Nations Environment Programme have joined forces to produce this report on Green Growth, Resources and Resilience. Each institution has its own mandates and the three find common ground in working together to help catalyze action for sustainable and inclusive economic growth—a future where all people have an opportunity for a better life.

Decision makers at the sixth Ministerial Conference on Environment and Development in Asia and the Pacific (MCED), held in 2010 in Astana, Kazakhstan, have discussed the key findings and recommendations of a preview of this report. Looking beyond MCED, this report provides a wealth of information to facilitate the regional and global preparations for the United Nations Conference on Sustainable Development, to be held in Rio de Janeiro in 2012. This report will help all stakeholders take urgent action to chart our way to a more sustainable future.

Noeleen Heyzer Haruhiko Kuroda Achim Steiner Executive Secretary President Executive Director ESCAP ADB UNEP iii About the report

Background This report—Green Growth, Resources, and Resilience—is the product of a combined effort by three institutions: the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the Asian Development Bank (ADB) and the United Nations Environment Programme (UNEP). It is the sixth in a series of reports published every five years since 1985 by ESCAP (formerly known as the State of the Environment in Asia and the Pacific series). It is also the third in ADB’s Asian Environment Outlook series, funded by a Technical Assistance project – Preparation of the 2010 Asian Environment Outlook – for which financing was approved in May 2009 through the Technical Assistance Special Fund. It is also in line with UNEP’s mandate to keep the state of the environment under review.

A Preview1 of this report was distributed during the sixth Ministerial Conference on Environment and Development in Asia and the Pacific (MCED 6), held in Astana, Kazakhstan, in September 2010. This full report comes at a key time as governments and other stakeholders prepare for the 2012 United Nations Conference on Sustainable Development (UNCSD) to secure renewed political commitment for sustainable development, assess progress to date and the remaining gaps in implementation of the outcomes of the major summits on sustainable development, and address new and emerging challenges, 20 years after the 1992 Earth Summit.

In 2005, the need to ”shift the development orientation from a ‘grow first, clean up later’ approach to one of green growth,” was a key message of MCED 5.2 Then, the term “green growth” was relatively new to the international arena, but since then, green growth and related concepts have increasingly become an important part of the sustainable development agenda. This is underscored by the fact that one of the two themes of UNCSD is a green economy in the context of sustainable development and poverty eradication.

Organization The report is organized into six chapters:

The first chapter describes an evolving policy landscape in which rising demand for resources, along with increasingly apparent impacts from climate change, are bringing together economic, social and environmental crises, providing new opportunities and giving rise to new governance challenges.

The second chapter provides a detailed examination of resource use and efficiency trends, showing the complex nature of resource risks posed by the scale and speed of the economic transition and resource-intensive patterns of growth.

The third chapter outlines key policy actions for bringing economic growth strategies in closer alignment with the objective of sustainable development.

The fourth chapter describes how new governance challenges can be addressed at a number of levels, from international and regional governance structures down to national and local levels.

The fifth chapter focuses on illustrative strategies to promote improved resilience, a concept that centers on the capacity of societies and economies to resist and adapt to shocks and, whenever possible, turn crisis into opportunity.

The concluding chapter highlights some of the important findings of the report and comments on the implications for the two themes of the United Nations Conference on Sustainable Development (Rio+20).

iv Acknowledgements

Members of the team that coordinated the preparation of the report and provided significant input into all chapters were: Masakazu Ichimura, Chief, and Hitomi Rankine, Environmental Affairs Officer of the Environment and Development Policy Section, Environment and Development Division, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP); Daniele Ponzi, Lead Environment Specialist, and Jeffrey Bowyer, Environment Specialist (Consultant) of the Environment and Safeguards Division, Asian Development Bank (ADB); and Anna Stabrawa, Regional Coordinator for Early Warning and Assessment of the Regional Office for Asia and the Pacific, United Nations Environment Programme (UNEP). Dechen Tsering, Jinhua Zhang and Tunnie Srisakulchairak supported UNEP’s contribution, while Peter King and Benoit Laplante acted as technical advisors on all chapters.

Several people provided significant contributions to specific aspects of the report, including: Heinz Schandl, Jim West and Karin Hosking on the theme of resource use and resource efficiency; Louis Lebel, Natalja Wehmer, Shaswat Saptkota, Aksel Sundstrom on inclusive and adaptive governance; Wanhua Yang, Hans van Rijn and Peter King on governance; Dan Millison, Lorenzo Santucci and Kelly Hayden on sustainable infrastructure; Ti Le Huu and Ermina Sokou on water; Jay Maclean on sustainable agriculture; Vincent Jugault and Marc Ruffet on green jobs; Charles Rodgers on adaptation to climate change; and Brian Carisma on the use of data. David Annandale also provided inputs on a number of topics.

The report was edited by Jay Maclean and Orestes Plascencia. The cover page and layout were prepared by Ruedee Arunkhajohnsak and Michael Cortes, and administrative and secretarial assistance was provided by Wipavee Kasemsawasdi, Rujira Khrueachotikul, Siriwat Theerawong, Sirkul Suvarnnate (ESCAP) and Charina Munda (ADB).

In addition to those directly involved in preparing the report, we would like to recognize the contributions of ESCAP, ADB and UNEP colleagues, along with government focal points, who reviewed the chapters and provided insightful comments (Annex 4). We would also like to thank those who attended a series of expert group and review meetings.

We would especially like to acknowledge the contributions of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) of Australia in relation to the ground-breaking work done on material consumption and resource efficiency (in partnership with UNEP), and the International Labour Organization Regional Office for Asia and the Pacific on the subject of green jobs.

Rae Kwon Chung Nessim J. Ahmad Young-woo Park Director, Director, Regional Director and Environment and Environment and Safeguards Representative for Asia and Development Division Regional and Sustainable the Pacific ESCAP Development Department United Nations Environment Asian Development Bank Programme

v contents

FOREWORD ...... iii ABOut thE REPORt ...... iv. . . . AcknOWlEDGEmEntS ...... v. . . . nOtES ...... x. . . . . ABBREviAtiOnS AnD AcROnymS ...... xi . . . ExEcutivE SummARy ...... xii

chAPtER 1: A chAnGinG lAnDScAPE, EvOlvinG POlicy chAllEnGES AnD OPPORtunitiES . .1 . A changing regional outlook—converging challenges ...... 1 Security in a changing economic reality ...... 4 Energy security ...... 5 Minerals, metals and other materials ...... 5 Water security ...... 6 Food security ...... 8 Ecosystems and biodiversity ...... 12 Emerging opportunities ...... 14 Green shoots: investments, commitments and actions ...... 16 Global and regional commitments ...... 16 National initiatives ...... 17 New challenges for governance ...... 20 Turning green shoots into green and resilient growth ...... 21

chAPtER 2: RESOuRcE uSE tREnDS: mAtERiAlS, EnERGy AnD WAtER ...... 23 Introduction ...... 23 Resource use trends in Asia and the Pacific ...... 23 Rising resource use ...... 25 A changing resource base ...... 27 Subregional and country differences in resource use ...... 29 Extraction and importation of materials ...... 32 Resource efficiency trends ...... 33 Decoupling trends ...... 35 Shifts in production amid insufficient technological progress, rising consumption and growth ...... 37 Outlook ...... 38 Conclusions ...... 41

chAPtER 3: GREEninG GROWth: tOWARDS A GREEn EcOnOmy ...... 45 . . Introduction ...... 45 Overhauling the economy ...... 45 A more realistic response ...... 45 vi A virtuous cycle for green growth – systemic reform ...... 47 Priority actions ...... 48 Reforming economic incentives ...... 48 Sustainable infrastructure ...... 54 Investment in natural capital ...... 59 An enabling environment: key steps for more resilient economies and societies ...... 64 Establishing a vision and tracking progress ...... 64 Building an integrated policy framework ...... 65 Governance for the greening of growth ...... 68 Human capital formation, creating winners and ensuring a fair transition ...... 70 Conclusions ...... 71 chAPtER 4: GOvERnAncE FOR SuStAinABlE DEvElOPmEnt ...... 73 . . Introduction ...... 73 Global level governance ...... 74 Current challenges ...... 74 Outlook ...... 74 Regional level governance ...... 79 Current challenges ...... 79 Outlook ...... 79 National and local level governance ...... 82 Current challenges ...... 82 Outlook ...... 83 Conclusions ...... 86 chAPtER 5: StREnGthEninG RESiliEncE ...... 89 Introduction ...... 89 Resilience and policymaking ...... 89 Resilience in action ...... 91 Adaptive and inclusive approaches in agriculture, urban planning and natural resources management ...... 91 Diversifying and decentralizing energy systems ...... 93 Pursuing a “no regrets” approach to climate change adaptation ...... 95 Conclusions ...... 98 chAPtER 6: cOncluSiOn ...... 101 AnnEx 1: RESOuRcE FlOW AccOuntinG ...... 105

AnnEx 2: mAtERiAl cOnSumPtiOn FOR SElEctED ASiAn AnD PAciFic cOuntRiES . . . . 109

AnnEx 3: DAtA tABlES ...... 113

AnnEx 4: REviEWERS AnD OthER cOntRiButORS ...... 119

EnDnOtES ...... 121

vii tables 1.1: Access to improved drinking water and sanitation, 2000 and 2008 ...... 7 1.2: Proportion of undernourished population, 1990-1992 and 2005-2007 ...... 9 2.1: Agrarian and industrial metabolic regimes ...... 25 2.2: Average annual growth rate of domestic material consumption, 1970-2005 ...... 25 2.3: Share of domestic material consumption, 1970, 1990 and 2005 ...... 30 2.4: Resource use, economy and employment outcomes of three alternative scenarios ...... 40 3.1: Beneficiaries of sustainable management of forests ...... 60 3.2: Investment modalities and policy support from governments for investments in sustainable natural resource management ...... 61 3.3: Greening growth: strategies, policies, partners and investments ...... 67 5.1: Elements of adaptive policies in crop insurance in India ...... 98

A1.1: Main material categories of Asian and Pacific material flow accounts ...... 108 A3.1: Per capita material use in Asian and Pacific countries, 1990, 1995, 2000 and 2005 ...... 113 A3.2: Material intensity in Asian and Pacific countries,1990, 1995, 2000 and 2005 ...... 114 A3.3: Per capita energy use in Asian and Pacific countries, 1990, 1995, 2000 and 2005 ...... 115 A3.4: Energy intensity in Asian and Pacific countries,1990, 1995, 2000 and 2005 ...... 116 A3.5: Per capita water use in Asian and Pacific countries, 1990, 1995 and 2000 ...... 117 A3.6: Water intensity in Asian and Pacific countries,1990, 1995 and 2000 ...... 118 Boxes 1.1: The 2008 crisis – a precursor? ...... 2 1.2: Water hotspots ...... 7 1.3: Food and non-food production ...... 10 1.4: Forest and wetland degradation in Asia and the Pacific ...... 13 1.5: Sustainable infrastructure investment opportunities ...... 15 1.6: Green growth – a strategy for sustainable development ...... 17 1.7: Initiatives to promote investments in natural capital ...... 20 2.1: Material flow database for Asia and the Pacific ...... 24 2.2: Water use and intensity in Asia and the Pacific ...... 27 2.3: Decoupling ...... 36 2.4: Analysing change ...... 38 2.5: Resource use and human development ...... 42 3.1: The potential for a green economy ...... 46 3.2: Reducing policy tensions: enhancing investments in human capital ...... 49 3.3: Subsidy reform and poverty reduction in Indonesia ...... 51 3.4: Economic value of ecosystem goods and services ...... 51 3.5: The Asian Environmental Compliance and Enforcement Network ...... 52 3.6: Venture capital for clean technology ...... 53 3.7: Promoting energy efficiency in Thailand ...... 56 3.8: Managing water demand in Singapore ...... 58 3.9: Pilot policy on payments for ecosystem services - Viet Nam ...... 62 viii 3.10: Organic farming and integrated farming systems ...... 64 3.11: Low-carbon development ...... 65 3.12: Selected environmental performance and public disclosure schemes ...... 69 3.13: Green jobs potential in renewable energy ...... 70 4.1: Climate change: from science to policy and mainstreaming ...... 73 4.2: Efforts to improve the effectiveness of multilateral environmental agreements ...... 75 4.3: The institutional framework for sustainable development ...... 77 4.4: Green protectionism ...... 78 4.5: The Ministerial Conferences on Environment and Development ...... 80 4.6: The Coral Triangle ...... 81 4.7: Public financial management ...... 83 4.8: Inclusive and adaptive governance ...... 85 4.9: The Sustainable Penang Initiative ...... 86 5.1: Factors that build resilience ...... 90 5.2: The Baan Mangkong programme ...... 92 5.3: Decentralized and distributed energy generation ...... 94 5.4: Net metering ...... 95 5.5: Threats from climate change to food and water security ...... 96 Figures 1.1: Domestic water use per capita, 1992 and 2002 ...... 8 1.2: Changes in food and non-food production of Asian and Pacific countries, indexed 1999–2001 to 2007 . . 11 1.3: Examples of green policies and initiatives since 2005 ...... 18 2.1: Domestic material consumption for Asia and the Pacific and the world, 1970-2005 ...... 26 2.2: Greenhouse gas emissions in Asia and the Pacific, by subregion, 1990, 1995, 2000 and 2005 . . . . . 26 2.3: Share of main material categories in domestic material consumption in Asia and the Pacific, 1970 and 2005 . 27 2.4: Domestic material consumption by main material categories, 1970 and 2005 ...... 30 2.5: Domestic material consumption in Asian and Pacific region and its subregions, 1975, 1990 and 2005 . . . 31 2.6: Domestic material consumption in Asian and Pacific countries, 1990, 2000 and 2005 ...... 31 2.7: Domestic extraction of primary materials in the Asian and Pacific Region and its subregions, 1975, 1990 and 2005...... 32 2.8: Physical trade balance for the Asian and Pacific region and its subregions, 1975, 1990 and 2005 . . 33 2.9: Material intensity for Asia and the Pacific, rest of world and world, 1970-2005 ...... 34 2.10: Material intensity, domestic material consumption per GDP in Asia and the Pacific, its subregions and the world, 1990, 2000 and 2005 ...... 34 2.11: Material intensity in Asian and Pacific countries, 1990, 2000 and 2005 ...... 35 2.12: Decoupling index for energy for the Asian and Pacific region, its subregions and the world, 1990-2005 . . 36 A1.1: Scope of basic material flow accounts ...... 106 A2.1-30: Material consumption by main material categories for 29 Asian and Pacific countries*, 1970-2005 ...... 109 * In East and North-East Asia: China; Japan; Republic of Korea; Mongolia; In South-East Asia: Indonesia; Malaysia; Myanmar; Philippines; Thailand; Viet Nam; In South and South-West Asia: Bangladesh; India; Iran, Islamic Republic of; Pakistan; Sri Lanka; Turkey; In North and Central Asia: Armenia; Azerbaijan; Georgia; Kazakhstan; Kyrgystan; Russian Federation; Tajikistan; Turkmenistan; Uzbekistan; In The Pacific: Australia; New Zealand; Fiji; Papau New Guinea

ix notes The symbol “$” stands for the United States dollar unless otherwise indicated.

The Asian and Pacific region, unless otherwise specified, refers to the group of ESCAP members and associate members which are considered to lie within the Asian and Pacific geographic region. ESCAP, ADB and UNEP have differing regional compositions.

Subregions used in this report are as defined by ESCAP, and their countries are, unless otherwise specified:

East and North-East Asia: China, Democratic People’s Republic of Korea, Japan, Mongolia and the Republic of Korea.

North and Central Asia: Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Russian Federation, Turkmenistan and Uzbekistan.

South-East Asia: Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste and Viet Nam.

South and South-West Asia: Afghanistan, Bangladesh, Bhutan, India, Islamic Republic of Iran, Maldives, Nepal, Pakistan, Sri Lanka and Turkey.

The Pacific: Australia, Fiji, Kiribati, Marshall Islands, Micronesia (Federated States of), Nauru, New Zealand, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.

x Abbreviations and acronyms ADB – Asian Development Bank AECEN – Asian Environmental Compliance and Enforcement Network ASEAN – Association of Southeast Asian Nations BRT – bus rapid transit CBD – Convention on Biological Diversity

CO2 – carbon dioxide CSIRO – Commonwealth Scientific and Industrial Research Organisation DMC – domestic material consumption EJ – exajoule EPRD – Environmental performance rating and public disclosure ESCAP – Economic and Social Commission for Asia and the Pacific FAO – Food and Agriculture Organization of the United Nations FES – forest ecosystem services FIT – feed-in-tariff GDP – gross domestic product GEF – Global Environment Facility GHG – greenhouse gas GJ – gigajoule GMS – Greater Mekong Subregion HDI – Human Development Index IEA – International Energy Agency IEG – international environmental governance IFI – international financial institution IFSD – institutional framework for sustainable development ILO – International Labour Organization IRRI – International Rice Research Institute MCED – Ministerial Conference on Environment and Development in Asia and the Pacific MDG – Millennium Development Goal MEA – multilateral environmental agreement MJ – megajoule mtoe – million tons of oil equivalent OECD – Organisation for Economic Co-operation and Development PES – payments for ecosystem services PPP – public-private partnership REDD – reducing emissions from deforestation and forest degradation REEO – Resource Efficiency: Economics and Outlook for Asia and the Pacific Rio+20 – 2012 United Nations Conference on Sustainable Development TEEB – The Economics of Ecosystems and Biodiversity UNCCD – United Nations Convention to Combat Desertification UNEP – United Nations Environment Programme UNFCCC – United Nations Framework Convention on Climate Change WEF – World Economic Forum WTO – World Trade Organization

xi ExEcutivE SummARy

In the last two decades, the growth rates of Asian conflict. In 2008, there were still some 947 and Pacific economies were among the highest in million people living in poverty in the Asian the world. The strong economic growth has lifted and Pacific region. By 2009-2010, as many as 21 more than half a billion of its people out of poverty million additional people in the region may have and has raised living standards. At the same time, moved below the poverty line as a result of the socio-economic progress was achieved at great 2008 crisis. Although the region as a whole is environmental cost due to unsustainable and still on track for achieving the first Millennium often inequitable economic growth patterns. Development Goal – halving, between 1990 and Rapid urbanization and industrialization involving 2015, the proportion of people below the poverty intensive use of resources has accelerated the line – hard-won gains in reducing poverty and degradation of natural capital and the production improving people’s lives are now in danger of of waste and emissions. Resource depletion being reversed in some countries. and pollution resulting from such activities as energy use and land-use change, have become One of the major challenges facing the region will global issues, evidenced by increased worldwide be overcoming resource constraints, including attention to climate change and biodiversity loss. energy, minerals, water and land, as people in the region strive to achieve higher living standards. The concept of green growth has emerged Global supplies of non-renewable resources amid concerns over increasingly evident cannot readily accommodate the rapid changes resource constraints and growing economic in demand that are currently being witnessed and environmental risk and uncertainty that in the region. Meanwhile, renewable resources, threaten the continued stability and prosperity such as forests and groundwater resources, are of the region. This report has been produced to also under threat. support policymakers and stakeholders in this changing development context. It provides a Perhaps most significantly, there are growing closer look at resource use trends and at green concerns about both the adequacy and growth strategies in response to the mounting stability of food supply, particularly in light of challenges to sustainable development and in the continuing food price rises. Food supply is support of a transition towards green economies being affected by a number of factors, including in the region. low crop yields, rising input costs, competing demands for freshwater, loss of farm land for housing and industry and neglect of investment. Climate-related extreme weather events are converging challenges compounding these challenges. In addition, and a shifting socio- the competition for land and changing market forces mean that production of non-food crops economic outlook is expanding faster than production of food crops, including in South Asia and East Asia, Policymakers are operating in a rapidly changing where hunger and undernourishment challenges economic reality, one in which economic persist or are growing. Also, in some countries, strategies that rely on an unlimited supply of free undernourishment rates are much higher than or cheap resources will no longer be possible. expected given overall average calorific intakes, Intensive resource use, rising energy costs, limited while the amount of food available for human resource endowments, climate change and consumption is dramatically reduced by food declines in the ability of ecosystems to provide waste. In response to these trends, there has critical ecosystem services, are all working been a perceptible increase in emphasis on self- together to expand environmental, economic sufficiency in food production, and wealthier and social vulnerabilities and uncertainties. countries with limited agricultural land have The triple food, fuel and financial crisis that sought to secure access to land for agricultural came to a head in late 2008 resulted in a global production in other countries. xii recession, unemployment, hunger and social Seasonal shortfalls in the availability of water growing source of new emissions. At the same are another present and growing crisis in many time, the consequences of climate change are parts of Asia. While the region has the world’s increasingly acknowledged to pose a real threat largest share of renewable freshwater resources, to the region’s expanded economic prosperity on a per capita basis, it has the lowest availability and improved livelihoods. Poor communities of water. Complex, evolving, and interrelated in both rural and urban settings are the most water security challenges include competing vulnerable to the negative impacts, with those in demands for water, including for agriculture, small island developing states facing perhaps the energy, industry, and domestic use; declining most immediate challenges. water quality; and vulnerability to climate and ecosystem changes. Seasonal water shortages have become more severe in certain parts of the region, posing a major constraint to economic Green shoots – new development and affecting the region’s food and opportunities and energy production, its ecological needs, and the health and livelihoods of its populations. Better challenges understanding of the concept of water insecurity, While sustained economic growth remains along with ways to asses this, are needed. necessary, leaders around the region increasingly Meanwhile, as energy demands mount, countries recognize that to reduce poverty and increase in the region will become increasingly vulnerable resilience, a greater focus is needed on achieving to price shocks, especially those that import a better quality of growth. At the national level, energy and have high energy intensity (i.e., a number of Asia and Pacific countries have energy consumed per unit of gross domestic pursued and invested in green strategies and product). Vulnerabilities linked to energy import policy reform, most notably China, Japan, and dependence, aggravated by the volatility of the Republic of Korea. Many other countries have energy prices, will continue to have far-reaching made major policy statements supporting green implications for the financial ability of countries growth, including Cambodia, Fiji, Kazakhstan, to meet their energy demands. A number of Maldives and Mongolia. Several countries have countries, especially those in South Asia, face established strategies and policies for low-carbon these challenges as they also attempt to greatly development, including voluntary targets for increase energy access for their populations. reducing GHG emissions or carbon intensities. The Asian and Pacific region is also leading the globe Ecosystem goods and services provided by in commitments to green investments, including natural capital are also in decline due to poor low-carbon power generation (renewable energy natural resource management decisions, growing and carbon capture and storage), energy and human populations and increased per capita fuel efficiency (buildings, public transport and consumption. As of 2008, the Asian and Pacific electricity grids), and water supply and waste region had the highest number of threatened management. species, while net gains in forest cover for the region overall hide continuing conversion of Recent policy initiatives hint at the potential primary forested lands, which has accelerated for fundamental economic transformations in several countries. These losses are significant needed to secure a sustainable future. There given that the region’s biodiversity and natural are tremendous opportunities presented by resources provide sustenance for millions of fledging markets, relatively low levels of per people while providing valuable goods and capita consumption, and unmet infrastructure services that help drive economies—from needs. “No regret” economic strategies – those seafood, agricultural products, and timber to that generate benefits under a wide range waste assimilation, nutrient recycling, aquifer of potential conditions – can be deployed in recharge, and climate change regulation. developing countries, reflecting a new economic reality. Such strategies can reduce resource risks Finally, rising material and energy use has resulted and can be adapted to each country’s needs and in growing emissions, pollution and waste levels. circumstances. Although the majority of the historical build-up of atmospheric greenhouse gas (GHG) emissions is New challenges for governance are an important the result of emissions from developed countries, aspect of the changing policy landscape. Asian developing countries account for the fastest Governance approaches and institutions are xiii needed that integrate multiple perspectives Also, the tendency for societies to change to diets across different sectors, given that economic richer in animal protein as they become more issues still often take precedence over social affluent is increasing competition for biomass and environmental concerns. Furthermore, in production from arable land. many countries, governments must increasingly account for the fact that the general public has For most subregions, dependence on external heightened expectations regarding participation, resources is increasing. Many developing as well as stronger capacities to self-organize and economies in Asia and the Pacific are now net increased access to information. importers of raw materials, especially fossil fuels and metals. East and North-East Asia, an economically diverse and dynamic but resource- constrained subregion, is importing increasing Resource use trends – quantities of resources per capita to satisfy its growing rate of material consumption. South-East learning from the past Asia and South and South-West Asia, subregions and looking to the future with high poverty rates and low per capita access to resources, have physical trade balances that are Between 1995 and 2005, Asian and Pacific also increasing – signaling increasing reliance on consumption of four main types of materials imports. The growing resource demands in the – biomass, fossil fuels, metal ores/industrial region will be reflected in rising prices for fossil fuels, minerals and construction minerals – grew by ores and food, adding pressure to national and 50 per cent, from 23.6 billion tons to around 35.3 household budgets. billion tons. Since the mid-1990s, the region has accounted for well over half of global material A continuation of these trends will further use, overtaking all other regions combined. increase the exposure to risks associated with relying on external suppliers, especially for those As of 2005, the Asian and Pacific region required countries with low resource endowments. Under three times the input of resources as the rest of a business-as-usual scenario, the region will the world to produce one unit of GDP. Ominously, continue to witness rapid growth in material and material intensity in the region as a whole energy use, along with carbon dioxide emissions. increased from 2000 to (at least) 2005, reversing Based on modelling conducted for the report previous trends. The main reason for this reversal of the United Nations Environment Programme is that economic activity in the region, as well as (UNEP), Resource Efficiency: Economics and Outlook in the world, is shifting away from relatively more for Asia and the Pacific (REEO), if current trends efficient centres of production, such as Japan, continue, the region (as defined by UNEP) will to relatively more resource-intensive centres of consume at least 80 billion tons of materials and production, such as China. The enormity of this 700 exajoules of energy per year; CO2 emissions shift has been enough to affect regional and are likely to more than triple by 2050. global efficiency trends, even as most economies (including China itself) are becoming more Even making use of all technological potential efficient. If these trends continue, extractive within existing systems will not be sufficient to pressures on the environment will increase even ensure long-term reductions in the negative faster than the rapid rates of economic growth. impacts on resources and the environment. Efficiency gains would eventually be unable Many countries in the region are also experiencing to keep pace with growing populations and dramatic changes in material use profiles, away per capita consumption rates. Furthermore, from agricultural systems and biomass and equitable access to resources is an increasingly toward urban/industrial systems and mineral growing concern. materials. Large amounts of sand, gravel and other bulk construction materials are being used In response to this changing context, it will be to build rapidly-expanding cities and transport vital for regional economies to improve resource infrastructure and for manufacturing. This shift efficiency while maintaining gains in labour in material use is also influenced by a growing productivity to enable further growth, but at middle class that can afford commodities that much lower environmental costs. In the medium- characterize a modern lifestyle. Perhaps most and long-term, environmentally and economically significant is the higher per capita consumption sustainable growth can only happen through xiv of transport fuels as a result of rapid motorization. a second industrial revolution characterized by systems innovation, high resource use efficiency, A supportive economic incentives framework and a greatly reduced reliance on hydrocarbons. lies at the heart of successful green growth Significant structural changes will be needed initiatives. While the market will play a key role in patterns of consumption and production, in determining economic outcomes, market affecting everything from how people are housed solutions will not emerge automatically. Green and move around to how water, energy and investments in pursuit of green growth will deliver food are produced. This will require substantial large long-term benefits, but they sometimes do changes in policies, economic behaviour and so only after significant upfront costs are incurred societal aspirations to develop in a way that over a period of many years. Addressing this requires less materials and energy and allows “time gap” between short-term costs and long- for higher flexibility and lower risks in the face term benefits of green investments will require of global environmental change and resource collaborative action between governments scarcity. and the private sector to overcome the present financial barriers and risks that restrict capital flows into green sectors, thereby leading to Green growth strategies increased investment. – recalibrating economies For developing countries in particular, enhancing the level of green investments will also require for greater alignment with reducing the “price gap” between market prices and the economic value of ecosystem goods and sustainable development services, thereby improving the economic viability of a green economy and reducing environmental objectives pressures on a large scale. Without efforts to Green growth is, in general terms, economic correct market failures by internalizing the costs progress that fosters environmentally sustainable, of negative social and environmental externalities, low-carbon and socially inclusive development. any momentum achieved by green stimulus By “recalibrating” the economy to synergise investments and new financing will be quickly economic growth and environmental protection, lost, as gains in environmental protection and “green growth” strategies work to bring economic resource efficiency will be countered by increases growth trajectories in better alignment with in absolute levels of resource use, pollution and sustainable development objectives. Such emissions, as economies, population and per strategies can help build a “green economy,” capita consumption grow. characterized by substantially increased investments in economic activities that build on To help provide this momentum, eco-tax reform and enhance the earth’s natural capital, while offers a key cross-cutting, integrative policy tool reducing ecological scarcities and environmental that can help to secure a “double-dividend” for risks – activities such as renewable energy, low- both the economy and the environment by carbon transport, energy- and water-efficient emphasizing a shift from taxing the “goods” (for buildings, sustainable agriculture and forest example labour) to taxing the “bads” (resource management and sustainable fisheries. use and pollution). Policymakers can reduce fundamental economic-environment-social Greening of growth requires integrated development trade-offs that make conventional strategies that support systemic change in growth strategies unsustainable by boosting integrated, complementary and mutually tax and other economic incentives to improve reinforcing ways. A key concept in approaching resource productivity. Tax systems are most green growth is recognition that economic, effectively modified within broader budget reform social and environmental systems are actually efforts (including subsidy reform and the use of a complementary, not in conflict. For those focusing wide range of incentives, fees and surcharges) on the environment, green growth is a way to and a flexible system of budget redistribution. reduce environmental stress; for economists, it can offer increased profits and competitiveness; Infrastructure investments should be and for social scientists, it can contribute to guided by the principles of sustainability, ensuring that basic needs are met. accessibility, and social inclusiveness. The ability of economies to reduce the quantity of resources used by the built environment is a xv major green growth opportunity. About two strengthen climate adaptation efforts through thirds of the $8 trillion needed for infrastructure ecosystem-based adaptation approaches. investment in Asia and the Pacific between 2010 Sustainable management of natural capital also and 2020 will be in the form of new infrastructure, enhances the potential for ecosystem services which creates tremendous opportunities to for economic transformation—for example design, finance and manage more sustainable where eco-tourism potential is developed as an infrastructure. The development of conventional economic development strategy. Investments infrastructure locks regional economies into should be targeted at key ecosystem services unsustainable patterns of resource use for many that hold particular value for their economies and decades, reducing the prospects for sustainable societies. outcomes. It will be vital for planners and policymakers to take advantage of this crucial However, such investments are not happening at window of opportunity to change resource-use the necessary scale because the economic value patterns. of natural capital is rarely captured in decision- making processes, due to limited indicators, Building sustainability into infrastructure – accounting systems and prices in the market. To including housing, transportation networks, address this problem, improved understanding energy and water supplies – involves replacing and quantitative measurement of biodiversity and upgrading existing infrastructure with and ecosystem values are needed to support more eco-efficient systems and building around improved governance and policy on natural the needs of people at a scale that reduces resource management and to make the case for operating costs and increases accessibility and investments in ecological infrastructure. social inclusion. Through integrated approaches, sustainable infrastructure can also help provide There is an opportunity to increase financial multiple environmental, economic and social incentives for sustainable natural resources benefits. For example, investments in sustainable management through payments and markets transport and urban planning help reduce GHG for key ecosystem services, such as through emissions and air and water pollution, while the United Nations Framework Convention improving urban mobility, access to markets, on Climate Change (UNFCCC) approach on public health and the investment climate. Reducing Emissions from Deforestation and Forest Degradation and payments for ecosystem Sustainable infrastructure need not cost more services schemes. In all of these efforts, care than conventional infrastructure over the long must be taken to ensure that livelihoods term if investments are sequenced and financed and community development outcomes are appropriately, balancing up-front capital costs enhanced for local and indigenous peoples. with lifetime operating costs. Investing in efficiency normally pays for itself in resource savings and can Sustainable agriculture is a critical aspect offset the need for some large-scale centralized of maintaining and building natural capital. infrastructure. However, the realization of huge To respond to growing challenges in this sector, potential efficiency gains remains hampered by governments will need to move beyond simply a lack of instruments to “monetize” the benefits increasing productivity to developing strategies of conservation and efficiency and to reward that ensure optimal and eco-efficient use of sustainable consumption. Innovative financing agricultural lands, water and other agricultural models are also needed, with technological inputs, while also ensuring equitable social and innovation given adequate policy support to economic benefits. There is a need to redouble achieve sufficient market penetration. investments in research and development to “Natural infrastructure” provides valuable address the gaps in the knowledge needed to deal but undervalued economic inputs. A green with changes in the agricultural sector, including economy recognizes and capitalizes on this efforts to harness the traditional knowledge of value and provides incentives for maintaining its farmers and preserve genetic diversity as a basis function. Natural capital investments will, over time, for competitiveness and resilience. Experiences help to secure critical ecosystem services (such as with supporting women farmers in the region water regulation and flood control), achieve cost have shown the importance of approaches that savings on infrastructure development, improve take gender considerations into account. human and environmental security and can xvi and experience of all stakeholders, including An enabling environment: the private sector, can help better define both policy integration, problems and solutions. The needs, interests and capabilities of disadvantaged and vulnerable governance, and poverty groups should be fully accounted for in the public decision-making process and in formulating reduction suitable responses. Such inclusiveness can help A long-term plan to enable systemic change ensure that resources are used and risks shared in requires an integrated policy framework. a more equitable manner. An effective transition Greening of growth requires integrated strategies toward long-term sustainability and greater that support systemic change in integrated, resilience also requires governance approaches complementary and mutually reinforcing ways. that are adaptive, involving specific mechanisms The complexity of challenges faced means that a to learn from policy experiences and adapt them clear vision, targets and monitoring approach are as needed (see below). required. Also needed are targets and indicators that give policy-relevant information on the The consideration of the institutional framework extent to which the economy is “growing green.” for sustainable development (IFSD) as one of the two major themes of United Nations Cross-cutting and integrated policy tools, such Conference on Sustainable Development as ecological tax reform, can harmonise actions presents an unprecedented opportunity to in and across specific policy arenas, including address the shortcomings of governance for sustainable infrastructure development, sustainable development, including international greening of markets and businesses, sustainable environmental governance. The outcome of consumption and investment in natural capital. discussions on IFSD will play an important role in shaping future governance solutions. Other approaches to developing integrated policy frameworks include focusing investments Specific measures will be needed to in economic sectors that both create higher strengthen the synergies between green quality jobs and support the reduction of energy growth and poverty reduction strategies . and resource use (an example is provided by Policies for greening economic growth are not the renewable energy sector). In an integrated a substitute for sound social policies and thus policy framework, demand-side and supply-side cannot alone address the root causes of persistent policy interventions support each other. The poverty. Rather, green growth measures must concept of ecosystem services can be used to be complemented by actions to ensure a “just integrate strategies that secure investments in transition” for workers and enterprises and to natural capital with those that enhance long- ensure that regressive impacts are minimized term economic viability and competitiveness and and mitigated. These actions should be based poverty reduction. on dialogue between government, industry and trade unions. Education for sustainable A transition to a green economy requires development, both formal and non-formal, governance that is effective, fair and also remains a basic condition for progress on inclusive. The shortcomings of environmental sustainable development and for building human and sustainable development governance at all capital. School curricula and skills training need to levels, from global to local, are being addressed be rapidly re-evaluated, updated and scaled up through a range of processes and approaches. to meet the emerging demands for skilled labour Examples of effective governance exist in the in sectors that are likely to be negatively affected region, but may be highly context specific. In and for the creation of new green jobs. terms of transferability and replicability, there is a need for further rigorous analysis, as well as coordinated action involving all stakeholders, to tailor governance solutions to appropriate Strengthening resilience circumstances and scale. The Asian and Pacific region has made Managing a transition to a green economy as encouraging first steps towards green growth the basis for sustainable development requires as one path to sustainable development. With governance approaches that are inclusive to further commitment, deepening insight into ensure that the perspectives, creativity, knowledge policy solutions and with the right investments, xvii the region could lead the globe toward a brighter, While conventional, centralized infrastructure more sustainable, future. Securing such a future is still necessary, modular and decentralized also depends on achieving greater resilience— services may be more appropriate in some cases, the capacity to survive, adapt and grow in the especially when funding constraints exist. face of unforeseen, often sudden, changes. To address climate change adaptation, A shift to greener growth can mitigate the impacts countries should take a “no regrets” of adverse shocks by reducing the intensity of approach. Such an approach to adaptation resource consumption, alleviating pressure on involves measures that represent sound commodity prices and simultaneously fostering development practice as part of a broader economic, social and environmental resilience. effort to achieve inclusive and environmentally Resilience in the context of green growth sustainable growth. This approach is in contrast comprises various actions – such as economic with current practice in many countries – waiting diversification, energy security, ecosystem for more advanced forecasting systems before preservation, and sustainable production taking action. Approaches must span a continuum and consumption. Such measures should be of responses, from those that are entirely justified accompanied by efforts to deal with incomplete by specific impacts on specific locations to those information and uncertainty. that represent sound development practice and confer benefits under a wide range of potential Approaches that enhance the capacity of climatic conditions, even in the absence of proven communities and economies to resist initial climate change. This “no-regrets” approach can shocks and to self-organize and adapt to deliver outcomes appropriate to a wide range of changing conditions will be increasingly opportunities, function effectively in a wide range important. Countries can explore more adaptive of conditions and provide high levels of security governance approaches that allow knowledge and confidence. Guiding principles should include and flexibility to be integrated into the institutions keeping the focus on development and poverty that sustain human well-being in the face of reduction, using sound science and forecasting, complexity and change and promote resilience incorporating ecosystem-based approaches, and and transformation. Such “adaptive capacity” is sharing risks through insurance schemes. the ability of a system not only to recover from shocks, but also to reform system functions and feedbacks without losing its ability to carry out the task for which it has been designed. Final thoughts The combined efforts of a wide range of The convergent challenges faced by the Asian and stakeholders through productive partnerships Pacific region threaten to seriously undermine will also be essential to enable green growth. achievement of the elusive goal of sustainable Such efforts can apply to, for example, adaptive development. An increasingly globalized co-management of natural resources, which economy, growing demand for resources of all seek to integrate conservation objectives kinds, unmet basic needs and climate change with sustainable resource use; engagement of mean that society, the environment and the multiple stakeholders in the pursuit of sustainable economy are more vulnerable than ever. cities, including upgrading slum communities; and managing climate risks in agriculture This report shows that the choices that Asian and by facilitating close engagement between Pacific countries make in relation to economic researchers and farmers, who have substantial strategies over the next few decades are critically experience with managing risks arising from important for the future of the region’s people natural climate variability. and for the planet as a whole. Fundamental changes in the way that economies grow will To ensure greater resilience, domestic policies be needed to address the risks and challenges should also encourage diversification in key of reducing poverty on a limited resource base sectors, such as industry, agriculture and - technological innovation and improvements energy. Diversifying and decentralizing energy in resource efficiency alone will not be sufficient. systems, for example, can help countries move away from their heavy dependence on fossil fuels, Governance approaches that support effective which makes regional economies susceptible to transition management towards green growth xviii price shocks and raises energy security concerns. and sustainable development will be as important as setting targets and formulating strategies. There is also growing consensus on the urgent A focus on improving the quality of growth, need for action, and governments must play a encompassing an expanded range of economic, key role in leading the response. There is also social and environmental considerations, must good potential for engaging the private sector become as important as, or even more important as an active partner for improving environmental than, expanding gross domestic product. performance. Competitive forces are driving improvements in environmental performance of How these strategic priorities are approached key industries, such as tourism, automobiles and by policymakers will differ, depending on the electronics, and governments can help facilitate situation in each country. Levels of development, these forces. resource endowments, demands placed on those endowments, current patterns of resource Strengthened regional and international use, governance structures, and vulnerability cooperation will also be needed, including specific to environmental change, in particular support for developing countries. International climate change, will define the targets and cooperation will be needed to support specific implementation of specific strategies. measures to close development gaps, deal with interlinked challenges, and build a future in which There have been persistent calls for green growth the focus on securing better outcomes for all strategies to play a significant role in poverty people provides impetus for a better quality of reduction. This potential exists, but must be economic growth. strengthened through specific policies, including in the social sector. Green growth strategies, on their own, cannot address the root causes of poverty. An exploration of persistent poverty, inequality and its links to resource use need further attention in policy research and analysis.

xix countries of the regionthe of countries would achieve Millennium wereExpectations raisedthatmany developing per day—fell from 1.5 billionto 979million. lessthan $1.25 poverty—on living inextreme 1990and2005,theregion’sBetween population of thiseconomicexpansionhave beensignificant. the highestinworld, andthepositive impacts Asian andPacific economieshave beenamong For decades, thelasttwo thegrowth rates of converging challenges outlook— A changing regional region challenges. since2005andemerging policy ofthe by countries actions selected outlook, This thechanging chapter describes regional governance responses. specific investments and aswell aspolicy social andenvironmental resilience willrequire outcomes for its people. Achieving economic, and economicgrowth, equitable whileensuring efficiency,resource-use environmental protection for theregion to synergize improvements in This changing landscape highlightstheneed change impacts. andprojected worsening ofclimate uncertainty and energy security, continuingeconomic challenges: mountingthreats to food, water the region, are ofconvergent facingaseries societies around theglobe, includingthoseof poverty. At thesametime, economiesand more thanhalfabillionofitspeopleout has immenselybenefited theregion andlifted in Asia and the Pacific decades inthelasttwo The strong economicgrowth experienced CHAPTER 1: ACHAnging l A E volving nd o nd PPo P RT oliC 1

uniTiE A patterns. inequitableeconomicgrowthand often great environmental costdueto unsustainable progress hadbeenachieved atsocio-economic At thesametime, there were thatthis warnings by 2015. number ofpeopleinpoverty (MDG)1ofhalvingthe Goal Development poverty line. poverty people intheregion may have moved below the acceptable and healthy quality oflife.acceptable andhealthy quality the prospectsfor continuedgrowth andan natural disasters andclimate changethreatened economic growth trends, frequent andsevere and slowed rates offorest loss),unsustainable insomecitiesexample, airquality better urban hadimprovedenvironmental (for performance oftheregion’sAlthough someaspects environmental pressure. use ofresources, considerable hadexerted involvingand industrialization intensive Pacific region,urbanization coupledwithrapid the world’s to theAsian and activity industrial of stressed ofalarge thattheongoingshift part inAsiaand Development andthePacific (MCED) Conference Ministerial the fifth onEnvironment region. intheAsian andPacificpeople livinginpoverty 2008,there were In conflict. stillsome 947million recession, unemployment, hungerandsocial came to a headinlate 2008 resulted inaglobal food,The triple that crisis fuelandfinancial more tentative of themajorindustrial recovery 7.3 percentin2011,contrast to the slower and and Pacific economies were projected to grow by growth andthedeveloping trajectories, Asian in theregion continuedtheir rapideconomic andothercountries China,India Nevertheless, ndsCAPE y 4 By 2009-2010,asmany By as21millionmore CHAllE 2 In 2005, theregional In assessmentfor s 5

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1 A Changing Landscape, Evolving Policy Challenges and Opportunities 2 A Changing Landscape, Evolving Policy Challenges and Opportunities world’s poor regionthe tothirds home isstill two the of Meanwhile, despite itssignificant achievements, resource-intensive investments. naturalresources andemphasizedundervalued economic growth strategies thathave long (Box 1.1). impacts These challengesreflect andclimate change economic uncertainty; about food, water andenergy supplies;persistent increasingly convergent challenges—insecurity economies. prices indeveloping Asiaprices could pushanadditional64.4millioninto poverty. that ifa30percentincrease alsoprevails. oilprices inworld Even indomesticfood a10percentrise intheregion countries couldbeloweredimporting by upto 0.6percentage pointsandmore thantwice in globalfood continuesthrough prices 2011,gross domesticproduct(GDP) growth for somefood- will adversely affect thepoorandvulnerable. have increased prices. ofenergy As thevolatility prices andcommodity inthepast,episodes of soaring environmental challengestogether. Investments incloselyintegrated food, fuelandfinancialmarkets The perceptions offuture resource scarcityhave played arole inbringing economic, resource and among othercountries. 2011reached inearly recordAsia, ofrice domesticprices levels inBangladesh,ChinaandIndonesia In percentabove itslevel andonly3percentbelow ayear itsJune2008peak. earlier 2011 alone—29 The World thatitsfood indexrose Bankreported 2010 andJanuary price by October 15percentbetween commodity, food andenergy prices, butthattrend hasnow resumed. suddenly, and jobsandlivelihoods were lost. The globalrecession interrupted thetrend towards rising weighed inthefinancialworld (and otherfactors in),theglobaleconomy dramaticallyand contracted commodities rose together. andfood inputs,materials As ofindustrial construction theprices increased hit an all-time high of $145/barrel offood,Oil prices in July 2008, and theprices metals, minerals and other change willdoublethisincrease food willincrease prices by some120to 180percentby 2030withoutclimate change, andthatclimate Box 1.1: The 2008crisis–aprecursor? the economic impact across aroundthe economicimpact multiple economicsectors of theglobeillustrate thevulnerability in Australia 2011hadthelowest inearly deathtoll ofthemostrecent disasters, thescaleandreach of ingrain onfood productionhadanalmostimmediate impact resulting prices. shortfalls While the floods time, Pakistan theworst experienced floodsinlivingmemory, affecting more than 20millionpeople. The temperatures onrecord andextensivewildfires, ongrain withmassive production. At impacts thesame August early events 2010,theRussianFederation onpeopleandeconomies. In thehighest experienced As events extreme becomemore climate-related frequent and severe, ofthese sowilltheimpacts from 542millionin2003–2005to 583millionin2007, food inAsiaHigher prices andthePacific hadalready people increased thenumberofundernourished economies andpeople. onglobal,dramatically increased until2008,resulting impacts nationalandlocal prices incritical demand forcommodities, together key withclimate change, speculative investments andotherfactors, food,The 2008triple wasanindicator ofwhatthefuture fuelandfinancialcrisis may hold. Growing nominal food more prices 1990and2011, thandoubledbetween Agriculture Organization oftheUnited Nations(FAO) Food indicates Price thatbothreal Index and and asthedemandfor food andcommoditiescontinuesto outpaceincreases insupply. The Food and to grow asthecostsofagricultural inputs(labour, energy, landandotherenvironmental inputs)increase upward thelongterm, In pressures are onfood to prices expected continue andagricultural commodity withahighshareandlimited budget,aswellcountries offood asincreases inpoverty. imports 7 6 andlagsfarbehindthedeveloped However, theregion stillfaces b Such increases in food prices create for macro vulnerabilities, particularly prices food in increases Such d

e Simulationresults suggestthatifa30percentincrease a being ontrackfor MDG-1, achieving While in2010,theregion wasassessedasstill andslow economicrecovery.to entrench poverty alsothreatenpolitical changeinseveral countries pressures thathave influencedInflationary ofpercapitaincome.economies interms inflation and a $130/barrel oil price showedinflation anda$130/barrel oilprice that a projected worstofdoubledfood casescenario investigationscountries. Recent of oftheimpact lives are now indangerofbeingreversed insome andimprovinggains inreducing people’s poverty butenergy proved prices pressure acritical point. c while an Oxfam report projectsthat whileanOxfamreport f continued page. onnext 8 hard-won

in 2011. to anadditional 42millionpeopleinpoverty foodprojects thatrising couldlead andoilprices Commission for Asia andthePacific (ESCAP) Pacific region. major economies, includingintheAsian and of joblessgrowth are alsogrowing in concerns increaseswith productivity andthepersistence ofwageincreases paceThe inability to keep intheregion.countries postponed by upto five years insomedeveloping couldbe the achievement oftheMDGfor poverty to capital-intensive economic structureshave FAO Food Price Index andBrent crudeoilprice, 2004to December 2010 January likely to have deepened global wheat and cotton shortages andincreased to have globalprices.likely deepenedglobalwheatandcotton shortages resource suppliesto disasters. climate-related The wheatandcotton lostintheQueenslandfloodsare g f e d c b a htm on 12 May 2011. htm on12May andUnited States Energy Administration,Index/en Information accessedfrom http://tonto.eia.doe.gov/dnav/pet/hist/rbrteM. Organization oftheUnited Nations(FAO), World Food Situation Source Commission: Economic andSocial for Asia andthePacific (ESCAP),basedondatafrom theFood andAgriculture

Economic and social survey of Asia andthePacific ofAsia Economic 2009:addressing andsocialsurvey triplethreats to development(ST/ESCAP/2522) to globalhungerrolls”, Paper, Briefing 17September 2008,cited Commission inEconomic andSocial for Asia andthePacific, Food andAgriculture Organization oftheUnited Nations(FAO), food and75millionpeople prices “Hunger ontherise–soaring english/gfpm/gfpm_02_2011.pdf Food andAgriculture Organization oftheUnited Nations(FAO), Globalfoodprice monitor, accessedfrom www.fao.org/giews/ au/common/pdf/QLD%20floods%20special%20report.pdf on2February 2011. au/common/pdf/QLD%20floods%20special%20report.pdf IBISWorld, floods: The economic “Queensland impact”, 2011,accessedfrom http://www.ibisworld.com. January SpecialReport, 2011). Global foodprice (Manila, inflation anddeveloping Asia Asian Bank, Development 2009). triple threats to development (Bangkok, CommissionEconomic andSocial for Asia andthePacific, and the Pacific of Asia Economic andsocial survey 2009: addressing foodpricesindex/en. on7February 2011. Food andAgriculture Organization oftheUnited Nations(FAO), Food Price Index R. Bailey, Growing abetter future: Food justice in a resource-constrained world (London, Oxfam,2011). Food price index (2002–04 = 100) 10 100 150 200 250 300 50 0 0420 062007 2006 2005 2004 11 fromWhile shifts labour-intensive 9 The Economic andSocial . on8February 2011. Crude oil 0820 002011 2010 2009 2008

, accessedfrom www.fao.org/worldfoodsituation/FoodPrices/ tenth Conference ofParties to theConvention changes to theglobalnitrogen cycle. for climate change, rate lossand ofbiodiversity three planetary “boundaries” ortippingpoints: may havethat humanity already transgressed findings indicate Recent andrisk. of uncertainty sourceEnvironmental changeisanimportant environmental pressures. that have contributed to thegrowing expanded theinputsofenergy andresources to provide rapidemployment growth and reduced ofsome economies the capacity economicgrowth,supported have they also Food , accessedfrom www.fao.org/worldfoodsituation/ Recent trends g (Bangkok, 2009). (Bangkok,

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3 A Changing Landscape, Evolving Policy Challenges and Opportunities 4 A Changing Landscape, Evolving Policy Challenges and Opportunities Economic Forum (WEF) pointed out, Economic Forum (WEF) increasingly incompatible. As the2011 World and sociallysustainablefuture willbecome growth aswell anenvironmentally asachieving pursuingeconomic interventions, and policy are atrisk. Without appropriate investments recognition that gains achieved in recent decades Given factors, these of all there widespread is can afford spendingwillgrow discretionary from thenumberofhouseholdsthat India, daunting. In of theresource challengesfacingtheregion looks thisregard,and humandevelopment. In thescope bywill bedetermined thescaleofunmetneeds intoLooking thenearfuture, demand for resources especiallysignificantof two risks. governance failure isalsoidentifiedasbeingone one ofthefive “risks to watch.” ofglobalThe risk as beingrun inenergyprices) and commodity andsustainedincreasesvolatility over thelong to resource issues (causing extreme security thathaveof risks recently emerged and points clusters nexus asbeingoneofthethree important The notes thewater-food-energyWEF report change andchemicalpollution. aerosol loading, excess freshwater use, land-use systems includeoceanacidification,atmospheric environmentalto continental-orplanetary-scale abruptenvironmentalthat couldtrigger change and climate change, otherprocesses underway addition to loss, biodiversity nitrogen conversion ecosystems.resilience In ofseveral important reactive nitrogen to theenvironment erodes the combined. formsThe additionofvarious of forms than all of the Earth’s terrestrial processes dioxide from theatmosphere into reactive more now convert nitrogenHuman activities wasofanthropogenic origin. of speciesextinction highrateconcluded thattheongoinghistorically on Biological Diversity, heldinNovember 2010, threat ofdisastrous impacts.” increasingly systems, connected andthe prospect ofrapidcontagion through regardingconcerns globalrisks, the challenges. Yet, we faceever-greater ever than less able to global copewith that bothgovernments andsocietiesare suggestand heightened socialconcerns while increasing geopoliticaltension has reduced globaleconomicresilience, major, shocks. new The financialcrisis isinnopositionto world face“The 13 14

2025; the present 8millionto anestimated 94millionby in 2005to 317millionby 2015. to grow from anestimated 87millionconsumers ecosystem.” longer safely pretend itoperatesa limitlesswithin economy isnow canno solarge thatsociety must changeto recognize that global“the response,In economic development strategies haveand risks multiplied. of aninterconnected have world beenexposed or environmentally sustainable. The vulnerabilities content, arein carbon noteconomically, socially mass consumption,and(iii)energy sources high (or free) naturalresources, (ii)resource-intensive strategies basedon(i)anunlimited supplyofcheap regionaland growth economic that mean outlook ofbothontheglobalchange andtheimpacts of naturalresources, theimplicationsofclimate The increasingly constraintsinthesupply evident economic reality inachanging security increase. prices ascommodity impacts will beespeciallysusceptible to inflationary natural resources perunitofeconomicactivity— resource is, usinghighamountsof intensive—that prices. commodity Those economiesthatare resources, leaving economiesvulnerableto rising anincreasing amountof willimport countries of naturalresources indicates thatmany addition,theregion’sIn low percapitasupply important goals. Outsidetheregion,important theEuropean utilization ofenergy andotherresources as the RussianFederation, identify theefficient of theregion, for example, and China,Japan the needs of peoplemore equitably. Economies resources more efficiently aswell asmeeting economic strategies are neededfor using Due to the demands on natural resources, of decliningwater resources insomeareas. agriculture andenergy grows sectors intheface and energy sectors, aswater demandfrom the are loomingatthenexusoffood, water and environmental challenges. and more resilientto future economic, social protective ofitsenvironment andecosystems, on apaththatislessresource intensive, more rapid economicgrowth, itwillneedto doso 15 and in China, the middle class is expected andinChina,themiddleclassisexpected 17 If theregion If continuesto aimfor 16 18 Difficultchoices translate into an immediate shortage offuelsfortranslate into animmediate shortage The projected flatcrudeoilproductiondoes not to cuttinggreenhouse gasemissions. industry, commitments by andnew somenations oilprices, declinesininvestmentrising by theoil 70 millionbarrels/day reached in2006,” dueto oil production “never regains itsall-timepeakof 68 to 69million barrels/day. thisscenario, crude In crude oilproductionto stay onaplateau atabout to IEA’s forecast, isfor scenario themostlikely key concern. concern. key resources, water andfood hasnow becomea product). is, oilconsumedfor eachunitofgross domestic (that withhighoilintensity are netoilimporters fuels to meetthe bulk ofenergy demandsandyet because mostare heavily dependentonfossil become increasingly shocks, vulnerableto price As energy demandsmount,many will countries 2005-2030. during and$9.7 trillion $7.0 trillion necessitate capitalinvestments ranging between Supplying thisenergy to demandisexpected 2030, growing atanannualrate of2.4percent. oil equivalent(mtoe) in2005to 7,215.2mtoe in projected to increasefrom tons 4,025.3million of energy. energy demandintheregion Primary is formstoof peoplewithoutaccess modern of The region remains hometo alarge number issuesindeveloping Asian countries. important access, affordability continueto be andquality is facingamajorenergy challenge. Energy levels increase, theAsian andPacific region As andincome population, urbanization Energy security development. economy andsustainable more resource-efficient thepressingunderlines towards needto shift a raw materialsof theEuropean Uniononcertain Commission dependence notes thatthecritical oil production about 26percent. of theworld’s crudeoilsupply, whileconsuming , Outlook (IEA), inthe2010editionofitsWorld Energy EnergyMeanwhile, Agency theInternational demands. inthe regionof countries to meettheirenergy far-reaching implicationsfor thefinancialability ofenergyvolatility prices, willcontinueto have dependence, aggravatedenergy import by the 23 21 indicated thatapeakinconventional The region produces only9percent 24 19 hadalready occurred. According Security ofaccessto energy, Security 22 toVulnerabilities linked 20 sustainably supplied. including adjustingtargets to levels thatcanbe wide increases inresource productivity, and proposes policiesthatemphasize system- water are for limitingfactors biofuelproduction Resource Panel concludesthatbothlandand foodbetween andfuelcrops. The International security, there are majorissuesofcompetition belowAs onfood discussed inthesection implications across thedevelopment spectrum. biomass. Bioenergy growthparticularly has development ofrenewable energy sources, There aboutthe are concerns alsoserious shale ortarsands). from oilsources non-conventional (suchasoil supplied through means enhancedrecovery 99 million barrels/day by 2035. This includes oil steadily, to continuerising likely reaching about the total productionof “petroleum fuels” ismost the world’s carsandtrucks. The IEAprojectsthat with climate changemitigationobjectives. thisoptionincompatible local pollutants, making generates large quantitiesofbothglobaland Unfortunately,Indonesia). ofcoal theburning (for andcoal reserves example, China,India, withlargegeneration, especiallyincountries will continueto play alarge role inelectricity the current limitationsofotheroptions, coal Given theregion’s energy rising demandsand investment. Pacific region, onfuture hasanobvious bearing and tsunami-prone areas, suchastheAsian and generation. Operationalsafety inearthquake nuclearpowerabout thefuture oflarge-scale nuclear disaster hasrenewed inJapan debate dioxide (CO diversify energy sourcesreduce and carbon to improveas ChinaandIndia energy security, is projected to increase rapidlyinsuchcountries generation addition, whilenuclearelectricity In region in1995-2005grew by about50percent consumptionintheAsian2, material andPacific the region. As discussedinmore detailinChapter metals,have growth rapid also experienced in renewableresources, such as mineralsand andconsumption ofnon- The extraction other materials Minerals, metalsand and liabilities. 27 2 ) emissions, thisoptioncreates risk 26

The March 2011Fukushima Daiichi 25

5 A Changing Landscape, Evolving Policy Challenges and Opportunities 6 A Changing Landscape, Evolving Policy Challenges and Opportunities to maintain globalfood production. from wastewater may berequired onalarge scale andreuse andrecovery ofphosphorousfarming to eco-efficient managementviaashift Demand tightened. onthesemetalswere restrictions export of technology producers inJuly2010when for by a handfulofcountries, will peak by 2035. production, ofwhich90percentisaccounted predict thatglobalphosphorous experts Some Similar issuesexistintheagriculture sector. growth.low-carbon outlook for therole oftechnology in achieving demand, dampenthecurrently optimistic alternativemanaging and expanding supplies minerals may,of critical withoutinvestment in (ICTs)—are constrained, information andcommunicationtechnologies ofwind turbines, hybrid vehicles andallkinds technologies—in particularin low-carbon used metals Signals ofrare supplies that earth processes and hamper economic growth. and in the long term may disrupt production term, scarcities will translate into higher prices, annually, second inthe world water- after of itstotal renewable resources are withdrawn water resources. Onaverage, about11per cent world’s populationwith 38percentoftheworld’s about60percentoftheThe region supports averagewith theworld of8,349cubicmetres. water—5,224 cubicmetres percapitacompared a percapitabasis, hasthelowest of availability share ofrenewable freshwater resources, but,on The Asian andPacific region hastheworld’s largest Water security exhaustion by 2050. by exhaustion and palladium,are projected to close be to of other metals, such as iron, cobalt, platinum stockyet tomined. be Underground reserves estimated to equivalent be to or larger than the of processed and manufactured metals is now such metals as gold, silver and copper, the stock materials mirror the concerns about peak oil. For Concerns about the limits of supplies of key grossworld domesticproduct(GDP). representing approximately 30per centofthe consumption,while material cent oftheworld the region for accounts approximately 58per from 23.6billiontons to around 35.3billiontons; 30 Developments in the supply chain supply the in Developments 28 In and the medium short 29 caughttheattention 31

utilization rates. EastandonparwithEuropeanscarce Middle supply and quality constraints.supply and quality The problems are facingwater andIndonesia, as Malaysia even inrelatively water-rich countries, such majorcitiesoftheregion,this situation.Most groundwater responsible overuse for are partly management ofwater catchment areas and activities,pooragricultural and industrial growing water consumption,pollutionfrom of theregion isindecline. Population growth, Furthermore, inmany water countries quality uses one fifth ofallwater consumption. uses onefifth problema major as for theenergy sector,which in China,decliningwater hasemerged availability are increasing withenergy demand. For instance, addition, water needsforIn energy production per drop.” and rainfed productionto produce “more crop be to ofbothirrigated improve theperformance simultaneously, oneofthemajorchallengeswill andfoodaddress bothwater security security in2005. remained undernourished Therefore, to more thanoneinfive peopleinthesecountries more than90%ofwater isusedfor agriculture, yet Tajikistan—all water stressed countries—where and Pakistan, Lanka, Sri India, in is extreme for andhunger. reducing poverty This situation agriculture donot always translate into benefits However,irrigation. ofwater for highproportions withdrawals are for agriculture, mainlyfor security,of freshwater70 percent asnearly ofwaterThe infood availability isamajorfactor states,even between asinIndia. Asiafor inSouth and countries examplebetween has longbeenasensitive issueinmany places, and economicdisasters attheregional level, this be increasingly needed to avoid environmental while effective will arrangements water sharing water resources isintensifying. Furthermore, to reduce pollutionloads, stress ontheregion’s rapidly, regimes andwhere regulatory are unable As populations grow rates rise andurbanization on whichpeoples’services livelihoods depend. need for water to sustainecosystems andtheir as from agricultural activity, iscompeting withthe water centres, from andindustrial urban aswell water-stressedIn countries, thedemandfor United States. accelerating energy demand, even inthe is aproblem beingfacedwherever there is 34

32

33 It It

hotspots” (Box 1.2). of theregion have as beencharacterized “water Table 1.1:Access to improved water drinking andsanitation, 2000and2008 and Sanitation,2010,accessedfrom www.wssinfo.org/datamining/introduction.html on17September 2010. Source: CommissionEconomic andSocial for Asia andthePacific, Programme based ondatafrom Monitoring theJoint for Water Supply unsustainable development. compromised bypolluted and/orotherwise are large: 80percentoftheregion’s riversare TtlAi n h aii ihu ces1912 387 1855 804 Total Asia and thePacific withoutaccess Total withaccessto improved sanitation Asia South-East andSouth-West South Asia Pacific Asia EastandNorth-East andCentral Asia North 3103582 improved sanitation Total Asia andthePacific withoutaccess Total withaccesstowater improved drinking Asia South-East andSouth-West South Asia Pacific Asia EastandNorth-East North andCentral Asia North improved water drinking investments inaway thatreflectsthemultipledimensionsofwater security. forframework andcapacity water hotspotscanhelptoinfrastructure, exploring prioritize policy investment andinterpretation,With inindicator development, thisproposed further datacollection adequate accessto water and/orsanitation. environmental change, have together thatthesecountries withtheevidence notbeenableto provide according to thisapproach to definingwater security, themainissuesareto climate vulnerability and progress,requisite for enhancingsocio-economic canbesecured. For ofgreatest the countries concern thesecountries, investmentIn isneededto ensure thataccessto water for purposes, aspre- various outcomes to ofwater deliver useandinthecapacity theseoutcomes. Guinea, thePhilippines, where inpositive there socio-economic Thailand andUzbekistan, are shortfalls theLaoPeople’s areIndonesia, Cambodia, India, security Republic, Democratic Myanmar, Papua New According challengesinrelation to to theseindicators, water withthemostimportant thecountries inrelation toindicating ahighlevel water ofinsecurity services. capacity. threats Significant shortcomings, orvulnerabilitiesinmultipleparameters are interpreted as of water availability, (disaster, andrisk vulnerability ecosystems andclimate change),andinvestment to delivercountries outcomes expected isassessedbasedonindicators andqualitative assessments access to water ofwater andsanitation,healthpatterns ofcommunitiesor use, whilethecapacity andenvironmental outcomes ofwaterThe useare socio-economic assessedbasedonindicators of to delivercountries outcomes expected inanequitableandsustainedway. andenvironmental outcomes ofwater ofcommunities use,or the socio-economic and(b)thecapacity hasbeenproposedassessment framework to identifywater “hotspots” by examiningindicators of(a) wherecontext water resource managementchallengesare becomingmore complex. Aregional water to explore ways to betterinvestments ina prioritize ofwater inimproving services, thesecurity The Commission Economic andSocial for Asia andthePacific withwater experts (ESCAP)hasworked Box 1.2:Waterhotspots subregion 35 Many countries ouain(00 ouain(00 % Population (‘000) % Population (‘000)

4 0 21551287 90 1515162 1395991 82 81 1 247509 1 214112 0 5 9353569 38 60 395345 88 659207 925595 59 192180 34 86 55 306 150 87 517 532 493042 94 815 267 189 818 80 202088 664 609 414 154 93 200 291 lead to rainfallevents, extreme thereby increasing food security. otherareas, In climate changewill more undermining droughts, extreme further aggravate by causinglongerand water shortages someareas,In climate changewillfurther 7078 03887 30348 87 88 27 037 30673 88 27 517 2000 1 914888 2 202675 3 636956 480 608 2008

7 A Changing Landscape, Evolving Policy Challenges and Opportunities 8 A Changing Landscape, Evolving Policy Challenges and Opportunities Indus, Brahmaputra, Mekong, Brahmaputra,Mekong, Indus, Thanlwin, Yangtze which regulate thewater supplyto theGanges, aquastat/main/index.stm on11July2010. Source: AQUASTAT, accessedfrom www.fao.org/nr/water/ inadequate cooperationamongcountries. due to over-exploitation, climate changeand Asiansmillions ofSouth facegrowing water stress and irrigation. upsomeperennial sources ofpotablewaterdry will reduce supply to downstream and countries climate change includereduced riverflows that The effects long-term ofglaciermelt under the incidenceofsevere flooding. 1992 and2002 Figure 1.1: Iran (IslamicRep.of) Russian Federation Papua NewGuinea Republic ofKorea Turkmenistan New Zealand Afghanistan Bangladesh Kazakhstan Uzbekistan Philippines Kyrgyzstan Azerbaijan DPR Korea Cambodia Indonesia Tajikistan Myanmar Mongolia Viet Nam Sri Lanka Australia Malaysia Thailand Armenia Pakistan Lao PDR Georgia Bhutan Turkey Japan Nepal China India d Fiji omestic water usepercapita, 38,39 010102020300 250 200 150 100 50 0 The glaciersoftheHimalayas, 021992 2002 m 3 per capita yearper requirement Estimated minimum 36 Hundreds of 37

households. at amuchhigherrate thanruralandpoor upper classesareto water connecting services provision exists. and Urban inservice inequity little changerelative to 1.1).Pervasive 2000(Table access to improved sanitationin2008,showing water in2008;also, 1.9billionpeople hadno in theregion stillhadnoaccessto safe drinking progress 2000-2008,480millionpeople during glaciers are shrinking dueto climate change.glaciers are shrinking the Pamir and Tien Shanmountainranges. These rivers, whichemanate fromSyr glaciersin Darya and of Central Asia dependsontheAmuDarya of accessto sanitation. water and$71billionto meettheMDGtarget $59 billionto meettheMDGtarget ofaccessto isestimated thattheregionIt needsatotal of requireseveryone sizeable resources. financial Providing to watersanitation services and reduces ofwater. theavailability further quality (Figurewater shortages water 1.1).Inadequate vulnerabletoand areto beparticularly likely Nepal, Pakistan, Papua Lanka, GuineaandSri New Myanmar,Cambodia, China,Fiji, Kazakhstan, challenges. People inAfghanistan, Bangladesh, especially inruralandslumareas, are stillbasic use, orunderinvestment inproviding access, provision. Leakage, inefficientdomesticwater service in shortfalls experience Many countries the overall situationiscomplex. basins, are vulnerableto globalwarming, but hundreds ofmillionspeopleinthesewater and Yellow riversandprovide water supplyto for and healthy anactive life. needsandfood preferencesmeet theirdietary access to sufficient,safe food andnutritious to times, have physical, socialandeconomic Food existswhenallpeople, atall security Food security in Rome, 2009,hasfour pillarswithregard from the World Summit onFood held Security (see Figure (see 1.1). meeting their populations’ basic water needs of four Asian andPacific seemto be countries At householdlevel, the more thanthree out for intheregion. alldeveloping countries reach $180billion,includingabout$100billion investment costsfor water infrastructurecould areincluded, the total all water annual services 43 42 However, despite significant 44 If investment If needsfor 46 40 This definition, This Similarly, much 45 41

extreme poverty lineinthenearfuture. poverty extreme more peoplecouldfallbelow the$1.25aday to increaseaction thesupplyoffood, 10million (New York, 2010). York, 2010 (New Source Report, Goals : United Nations, Development The Millennium Note: Subregion designations are asindicated onthelistofofficial MDGRegional Groupings; available athttp://mdgs.un.org revolution), 30 years ago(atthebeginning ofthegreen 17 percentmore today calories/person than While agriculture onaglobalscaleproduces household level). stability, access, andutilizationoffood (atthe (either domesticallygrown orimported), to food oradequacy supplies:availability change ismultiplyingthesechallenges. and development. facilities, and—notleast—agricultural research agricultural technology, infrastructure, processing grains for ofinvestment biofuel;andneglect in competinguseoflandandfood and industry; for freshwater; landfor lossoffarm housing increasing scarcityofandcompetingdemand input costs(for example, energy andfertilizer); of factors, includinglow crop yields;rising Food supplyisbeingaffected by anumber rises.price inthelightofcontinuingfoodparticularly offood andstability supply,both theadequacy including Armenia, Bangladesh,Cambodia, theincluding Armenia, inmany Asianis undernourished countries, but morepopulationper centofthe 20 than than 45percentabove minimumrequirements, have thatare average intakes more calorific intheregion1.2). Abouthalfofthecountries evenhas increased subregions some in (Table population ofundernourished and theproportion dueto under five malnutrition, are underweight food availability. About28percentofchildren relative in dueto seasonalvariation deprivation calories/day, whilemany moresuffer of periods consume lessthantheglobalstandard of2,200 545 millionpeopleinAsia andthePacific still sinceabout concern, Foodis ofparticular security Table ofundernourishedpopulation, 1.2:Proportion 1990-1992and 2005-2007 Oceania Western Asia AsiaEastern Asia,Eastern excluding China AsiaSouth-Eastern Asia Southern 47 there are growing about concerns 48 In many areas, In climate 49 50 Without

in areas mostlyoccupiedby thepoor. than 3.5millionsquareare kilometres eroded, andAfghanistan; ofIran, inChina,moreRepublic is widespread across Central Asia, theIslamic overgrazing, orchemical pollution. Desertification East Asia asaresult ofwindorwater erosion, andSouth- ofagricultural landinSouth quarters Severeplace inthree degradationhas taken other agricultural chemicals. pollutants produced for useaspesticidesand and water from therelease ofpersistent organic is thecontaminationofair,Also ofconcern soils gas emissions, andchangesinnitrogen cycles. land degradation, water pollution,greenhouse useheavy of chemical fertilizershave caused Furthermore, intensive techniques and farming insomeplaces. water security impacting further willdrive regionalfarming demandfor water, for needs. food meeting Intensive security do soby compromising prospects long-term andhunger.reducing poverty However, itmay helpmeetdemands, term, whilein theshort many places,In agricultural intensification may, global demand by 40percentbypacewith 2030to keep by 2030;globalproductionwillneedto increase willstillcomefromdeveloping countries Asia than 60percentoftotal cereal demandby Meanwhile, demandcontinuesto grow. More Timor-Leste. Pakistan, Lanka, Mongolia, Sri Tajikistan and People’sDemocratic ofKorea,India, Republic and inputs. foods thatusemore food crops for feedstock change indietstowardsprocessed meatsand income growth inemerging economiesandthe to agrowing population,butalsostrong world monoculture. of theproblemintensive isdueto large-scale 1990-1992 12 18 24 21 53 5 8 51

52 The increase isduenotonly 2005-2007 13 10 12 14 21 7 54 Much

9 A Changing Landscape, Evolving Policy Challenges and Opportunities 10 A Changing Landscape, Evolving Policy Challenges and Opportunities for agricultural productioninothercountries, to landhave soughtto secure accessto land Wealthier withmore countries limited access vulnerableto supplyinterruptions. particularly over-reliance canleave countries onimports for oneyear, nearly exports demonstrate that when naturaldisasters ledRussiato banwheat and2010/2011,suspended cereal exports, and asIndia when suchcountries Viet Nam the 1990s. ofagricultural productssince been anetimporter asawholeforworld several years, theregion has rapidly intheAsian andPacific region thanthe cultural production has beenexpandingmore Another notable trend is that, although agri- impact onaccessto sufficient,safeimpact food andnutritious attention. require particular such countries, landuse, agriculturalIn investment strategies that andinstitutionalarrangements thePhilippines,India, and Viet persistorare Namwhere growing. hungerand/orundernourishment innon-foodIncreases productionrelative to food productionare relatively large even inChina, and volatility, andpopulationgrowth. climate changeimpacts these trends present asignificant challenge, especiallygiven theprojected food increases price half abillionpeopleintheAsian andPacific region were asof2004–2006, already undernourished crops. Asia the caseinSouth and EastAsia (seeFigureThis isparticularly below). more Because than For the region asawhole, productionofnon-food crops is growing faster than productionoffood Box 1.3:Food andnon-food production Changes indexed infood andnon-food production, 1999–2001to 2007 a Source: FAOSTAT, accessedfrom http://faostat.fao.org/default.aspx on6June2010. Note: Subregion designations are asusedby theFood andAgriculture Organization oftheUnited Nations(FAO). Economic and Social Commission Economic andSocial for Asia andthePacific database. Goal estimate Development basedondatafrom Millennium 55 The food in2007/2008, crises price

Percentage change in production 50 40 30 20 10 10 20 30 40 0

Oceania

Melanesia

odpouto Non-foodproduction Food production Europe

Polynesia

World of producing food. inlandandwater to findalternative means short global markets.” haveThese factors ledcountries growing ofregional distrustinthefunctioning and major producers whenfood were prices high,and water scarcity, imposedby restrictions export of thefood crisis, “pressures onnaturalresources, land andwater, andableto afford it,to theeffects in theseinvestmentsattributed short by countries Food International Policy has Research Institute Pakistan, the Philippines, and Turkey. The the LaoPeople’sIndonesia, Republic, Democratic Cambodia, in production agro-industrial and been recorded withinvestments directed to food agreementsGovernment-to-government have including in the Asian and Pacific region. South Asia

Micronesia

Asia

East Asia 56

South-East Asia

Central Asia a

aspx on6June2010. Source: FAOSTAT, accessedfrom http://faostat.fao.org/default. indexed 1999–2001to 2007 ofAsian andPacificproduction countries, Figure 1.2:Changes infood andnon-food Iran (IslamicRep.of) Russian Federation Papua NewGuinea Brunei Darussalam Republic ofKorea French Polynesia American Samoa Solomon Islands Micronesia (F.S.) New Caledonia Turkmenistan New Zealand Cook Islands Afghanistan Timor-Leste Bangladesh Kazakhstan odpouto Non-foodproduction Food production Uzbekistan Philippines Kyrgyzstan Azerbaijan DPR Korea Singapore Cambodia Indonesia Tajikistan Myanmar Mongolia Viet Nam Sri Lanka Maldives Australia Malaysia Thailand Armenia Vanuatu Pakistan Lao PDR Georgia Bhutan Kiribati Turkey Samoa Tuvalu Tonga Nauru Guam Japan Nepal China

India Niue

Fiji

% Changeinproduction(1999-2001to2007) -70

-60

-50

-40

-30

-20 -10

0 10

20

30

40

50

60

70

80

90 100 being driveninto poverty. from biofuelsto prevent millionsmore people productionaway controls anddivert relax export Bank hascalledfor food producing to countries and Viet Nam. and Viet ple’s Republic, Democratic Pakistan, Vanuatu the LaoPeo- India, inChina, intakes—as calorific givenhigher thanexpected overall average countries exhibit undernourishment rates Alsotroubling, some risk. poor are atparticular food),substitutes urban (suchashome-grown increase accessto food. accessto Lacking butcouldnothelpmanyrising ofthepoor increased cereal from suppliesandkept prices afford to buyenoughfood. The green revolution security, many peoplecanneithergrow nor With regard to access, thethird pillaroffood and processing willberequired. countries, improvements storage, inharvesting, food supplychainisneededand, indeveloping Greater ofthe awareness raisingalongallparts resources andgreenhouse gasemissions. represents ahugewaste offood andenergy consumption stageindeveloped countries. This processing and at the in developing countries globally alongthefood chain,mainlyduring some 1.3 billion tons/year,is lost orwasted third offood produced for humanconsumption, damaging events. events, couldresult inmore frequent andmore to increaseandextreme weather variability the effects ofclimate change, whichisexpected of naturaldisasters intheAsian andPacific region, weather-related hazards thirds causeabouttwo physical lossesdueto naturaldisasters. Since anaverage year,In Asia incurs$39.5billionin weather events, aswell increasing water stress. to producecountries enoughfood isextreme Yet of ability the influencing factor another the enormous global waste of the enormous food. United Nations(FAO) hasalsodrawn attention to The Food andAgriculture Organization ofthe relative to the1990level. could declineby 50percentonaverage by 2100, yieldson Climate Changehasconcludedthatrice first generationbiofueltechnologies. fueldemandwithcurrent per centoftransport of total cropland would berequired to provide 10 biofuels (Box 1.3).Anestimated 8to 34percent food productionisincentives to grow crops for An obstacleto expansionof themuch-needed 62 59 The Intergovernmental Panel 60

58

61 57 About one The World The

11 A Changing Landscape, Evolving Policy Challenges and Opportunities 12 A Changing Landscape, Evolving Policy Challenges and Opportunities food security strategies,food infood security self-sufficiency market-orientated several years ofsupporting perceptible instrategies shift to secure food. After On amore positive note, there hasbeena (see Chapter 3). and more diverse to guard againstfuture shocks will require agriculture to bemore sustainable or prepare. that iscontaminated, orbadlystored, processed foodhazardous. utilizationissuesconcern Other itreducing oftheirfood thequality ormaking nated water suppliesandpoorsanitation,thus poor whosuffer from inadequate orcontami- use offood, whichbecomesaproblem for the largely ameasure ofhouseholds’ to make ability pillar, foodThe fourth security is utilization, especially whensubsidized. foods maylocalproduce,imported out-compete standards andregulations. At thesametime, trouble complying with international food smallproducersAmong otherbarriers, have most. Thus, to improve efforts food security social consequences, withthepoorsuffering pressuressuch price canhave adverse serious As 2008, and 2007 of illustratedcourse the in andupward spikes pressureprice onfood prices. feed theirpopulationsadequately inthefaceof can whether ornotthey challenges willdetermine to respondof countries The to ability allofthese and affordable foods. that promote productionofmore diverse, healthy levels,all at together withagricultural policies programmes andeducationonproper nutrition reverse thetrend through proactive awareness aggressive policiesandstrategies are neededto by thepoor. foods,quality particularly More continue to favourprices consumptionoflow these healthtrends willcontinueto worsen as present food andtradepoliciesinmostcountries, that plagues much ofAsia. in thedoubleburden ofunder- andover-nutrition simply adequate calories. The difference isseen food withappropriate content, not nutritional Finally, requires food security “safe andnutritious” obesity and type 2diabetes intheworld. andtype obesity their populationshaving thehighestrates of foods have imported resultedpoor quality in marginalized, unableto accessthesemarkets. steady supply, many smallproducers became a with more to industrialized provide markets Further, whilecereal productionbecame 64 65 In the Pacific In islands, 66 Under 67 63

per cent. to theentirecontribution economy of7.3 some 57percent,compared withtheestimated accruing to thesepeoplewasestimated at to the economicvalueof ecosystem services husbandry, andfisheries, forestry thecontribution people directlydependonsmallfarming, animal where increases. 480million India, In services climate changedevelops, thedemand for such As economiesandpopulationsgrow andas • • • • export can disrupt the functioning of watersheds candisruptthefunctioning export to land of for produce products agro-industrial forexample, the use and unsustainabletrade-offs; orresult ininequitable the flow ofthoseservices benefit. Environmental degradation canreduce from whichalleconomiesandsocieties services ofecosystemshealth anddiversity andtheir of environmental resources affects thesupply, to ecosystem healthandproductivity. Overuse istied to deliverThe capacity ecosystem services of theworld’s species. “mega-diversity” countries, andabout60percent containsfour ofbiodiversity—it terms ofthe12 region isoneoftheglobe’s regions richest in fodder, fuelwood, timberandmedicine. The seafood andagricultural productstolivestock and livelihoods for millionsofpeople—from abundant natural resources provide sustenance The Asian andPacific region’s and biodiversity Ecosystems andbiodiversity Assessment: areEcosystem definedby theMillennium services forbasis life. human Four ofecosystem types provided to humansfrom ecosystems, are the benefits the as described Ecosystem services, production asafuture “growth” sector. in place andsomegovernments identified food up domesticagricultural productionwere put response food toIn rising prices, measures to step thePhilippines and including Indonesia, Thailand. by many governments,has beenre-emphasized

spiritual andrecreationalspiritual values). (suchasaesthetic, educational, cultural services soil formation), and and cycling (suchas nutrient services support water purification andfloodregulation),water purification (suchasclimate regulation, regulating services and freshwater), (suchasprovisionprovisioning offood services 71 70 69

68

those provided by forests andwetlands (Box 1.4). suchas affecting thesupplyofecosystem services, changesinregionalis driving ecosystems and Asia andthePacific,In aselsewhere, resource use other needs. that produce water to meetbothagricultural and cover by some16,000hectares. of Bangladesh,whichexpandedmangrove 1990 and2005,withthelaudableexception concentrated Asia and inSouth-East between most Asian andPacific countries, withlosses Mangrove forest cover hasbeenreduced in specific areas are degraded. are to bereduced alsolikely whenforests in disaster mitigationandwatershed regulation, suchas ecosystem services, Locally important habitats, biodiversity critical are alsoaffected. including ecosystem services, important Convention’s Montreux Record as having hectares over 8sites) are listed by theRamsar (covering acombinedarea of1,238,573 addition,about4percentoflisted wetlands In mangrove replanting. and hasprompted asignificant investment in as increasingto climate vulnerability change loss ofmangrove forest hasbeen recognized source ofprotein.important Viet Nam’s rapid for stocks, fisheries marine an support surges,seasonal storm whilealsoproviding investment to shouldmitigate the theimpact disaster are andfood this ofconcern, security to natural country, inwhichbothvulnerability Cambodia, Malaysia, to have accelerated inAfghanistan, Armenia, sequester carbon. decreases inforest to biomass, whichserves cover, thesetrends have resulted inlarge Overall, anddespite expandedforest continued. conversion offorested landsto otheruseshas manyfive years). othercountries, rapid In 4millionhectaresinthelast total ofnearly to theannual expansionofforest area by a scale afforestation programmes contributed and species (inChina,India Viet Nam,large- of forest plantationsbasedonnon-native decade, thiswaslargely dueto theexpansion million hectaresofforest annuallyinthelast While Asia registered anetgainofsome2.2 Box 1.4:Forest andwetland degradation inAsia andthePacific a Totalof forest loss cover appears c

Other globallyandlocally Other b Pakistan Lanka. andSri continued page. onnext d In that In 1990-2000 and2000-2007 Average annualchangeinforest area, September 2010. Source: FAOSTAT, accessedfrom http://faostat.fao.org on17 Iran (IslamicRep.of) Russian Federation Papua NewGuinea Brunei Darussalam one third ofallthreatened animalspecies. one thirdalmost all threatenedof over plantsand threatened speciesinany oftheworld’s regions— As of2008,the region hadthehighestnumberof the Coral Triangle, andcoastal whosemarine which supports more than300millionpeople, which supports ecosystems Subregion, oftheGreater Mekong Republic ofKorea French Polynesia American Samoa Solomon Islands Micronesia (F.S.) New Caledonia Turkmenistan New Zealand Cook Islands Afghanistan Timor Leste Bangladesh Kazakhstan Uzbekistan Philippines Kyrgyzstan Azerbaijan DPR Korea Singapore Cambodia Indonesia Tajikistan Myanmar Mongolia Viet Nam Sri Lanka Maldives Australia Malaysia Thailand Armenia Vanuatu Pakistan Lao PDR Georgia Bhutan Kiribati Turkey Samoa Tuvalu Tonga Guam Japan Nepal China Palau India Niue Fiji 1990-2000 4- 113 1 -1 -3 -4 2024 2 0 -2 % perannum 2000-2007

72 The The 73

13 A Changing Landscape, Evolving Policy Challenges and Opportunities 14 A Changing Landscape, Evolving Policy Challenges and Opportunities biodiversity pressures.biodiversity wasteful inorder consumptionpatterns to reduce forest excessive change and management, and sustainable losses,reduce undertake post-harvest to enhance theproductionofagricultural lands, Outlook stresses theneedfor multiplemeasures Asianof Southeast Nations(ASEAN) Biodiversity changes inbiodiversity.” The 2010Association potentially threatened by declinesandservices natural disasters are amongthoseecosystem filtration ofpollutantsandprotection from medicines andfresh water, pollinationofcrops, points outthat provision“the of food, fibre, rely.” poor rural the onwhich ecosystem services climate changeaddsadditionalstress to fragile land degradation andthat ongoingthreat“the of Asia andthePacific are affected by someform of FAO notes thatabout850millionhectaresin The Outlook3 2010 GlobalBiodiversity 120 millionpeople, thelivelihoodsresources ofmore than support area remaining Asia, inSouth-East which represents thelargest contiguousforest land andwater century. habitatsover thenext could losemore than50percentofitsremaining degradation, Subregion theGreaterMekong For example, atpresent rates ofecosystem local climate andmitigationofnaturalhazards. regulationand water purification, ofregional and decline, includingfreshwater, capture fisheries, air As are aresult, in many ecosystem services also significant loss. driversofbiodiversity warming. Deforestation andlanddegradation are threat from directhumaninterferenceandglobal d c b a covering 69,000hectaresoralmostfour timesthesize ofitslandarea. andChina. IslandshasonedesignatedThe Marshall Kazakhstan wetland, Area, Atoll Jaluit Conservation 37,694,623 hectares. The largest areas oflisted wetlands are found intheRussianFederation, Australia, The Asian andPacific region Convention, has353wetlands listed undertheRamsar covering some to bethreatened. undergone changesinecological character, orare underthreat ofsuchchanges. Many more are likely

FAOSTAT, accessedfrom http://faostat.fao.org on17September 2010. Wetlands Aquick scan International, ofpeatlands inMalaysia (Petaling Jaya, Malaysia, Wetlands 2010)50pp. International-Malaysia, International, to several endangered animals. According to mostofitisbeingconverted palmoilplantations. to Source thereport, : Wetlands deforested, oftheswamps, whichhave orone-third stored from carbon decomposedplantsfor millionsofyears andare home forest thelast5years, In itwasestimated ayear thatapproximately inSarawak. 0.87millionacres ofMalaysia’s peatlandswere arecent report, In Wetlands (2010)estimated wasuprooting thatMalaysia anaverage International of2percenttherain 2011. tabid/3923/language/en-US/Default.aspx on28January UN-REDD Programme, No. Newsletter 2010,accessedfrom 7,March/April www.un-redd.org/Newsletter7_FAO_FRA_2010/ A quickscan ofpeatlands inMalaysia(Petaling Jaya, Malaysia, Wetlands 2010)50pp. International-Malaysia, 74 andtheforest ofBorneo, 79

75 are allunder 78 76 77

services. services. and more equitableaccessto essentialurban demand forresources, key aswell asallow greater investments would helpto slow thegrowth in social inclusiveness, (Box 1.5).Such isenormous and of sustainability, accessibility, eco-efficiency and energy, according to principles andtransport designing infrastructure, housing, including water 20years,planned over thenext thepotential for large infrastructure investments currently being day, day, every for 15years. thenext infrastructure for anadditional120,000people/ energy,culturalhealth and education, transport, towns willneedto provide jobs, housing, water, 2010and2025. between The region’s citiesand topopulation isexpected expand by 0.7billion fastest-growing citiesintheworld. The urban The region containssomeofthelargest and s engagement. and stakeholder and green jobs, changesinconsumermarkets technologiesinfrastructure development, new have emerged. These includeinvestments in of resource-usepatternsthe sustainability andincentives for improvingopportunities While challengeshave multiplied, new Emerging opportunities Asian andPacific region are now globalleaders technologies ofthe are andcountries maturing Technologies and green energy jobs.Renewable human-made structures. effective costly inthelongrunthanconstructing measures bemore canoften sustainableandcost that “ecosystem-based climate adaptation” ustainable infrastructure investments. 81, 82,83 In addition,itisnow recognized In 80 Given the natural disasters, amongotherinvestment opportunities. andincreasingrisks theresilience areas ofclimate ofvulnerableurban to changeand theimpacts of residential energy and commercial efficiency buildings; and reducing transport; sustainable urban andinfrastructure; enhancedwaste management services wateraccess to andsanitationservices; urban developing climate resilient andliveable citiesemphasizing:integrated planning;improved urban Liveable cities. With theincreasing oftheregion, urbanization there willbesignificant benefitsto transport iscritical. transport development context but also in intercity transit and freight transport systems. butalsoin intercitydevelopment transit andfreight context transport planning thatfocus ondemand management (for example, especiallyintheurban congestionpricing), populationsoftheregion.benefits to urban This willrequire acombinationofmore holisticpoliciesand safe,climate-resilient, efficient,accessibleandaffordablesystems willprovide significant transport withafocus bus rapidtransit,aswell oninvestments asnon-motorized transport), inclean,low-carbon, (for towardsexample, railand Shifting urban andsustainable modesoftransportation energy-efficient air pollutionare costingnationaleconomiesalarge percentage oftheirgross domesticproduct(GDP). not beableto accommodate theever increasing vehicles, numberofprivate andthatcongestion infrastructure, regardless hasbecomeclearthattransport to itscapacity,. It Sustainable transport will improved crop andcropping varieties systems. inputs, whilemaintainingproductivity, willrequire systems aswell asclimate-resilient, efficientirrigation ofintensivethe negative impacts agriculture related to theintensive useofchemical, energy andother thatminimizes agricultural sector oravoidsconsiderable inefficienciesinitsuse. Amore eco-efficient Irrigated agriculture. The agriculture consumesthelargest sector share ofwater, asaresult of partly before. through integrated isofgreater water resources thanever necessity managementandconservation, water andgroundwater ofsurface andincreasingsustainability and naturaldisaster risks thequality and affordable for safe water infrastructureandservices water andsanitation,whilereducing climate Water andsanitation.As water stresses are projected to continueto increase, improving accessto reliable g f e d c b a governance. efficiency, renewable energy, access to energy for all, energy reforms, sector building and capacity to promote andinvest energy inclean,efficientandclimate-resilient systems, emphasizingenergy Clean energy. As theregion aimsanswer thegrowing energy demand, itshouldexaminethepossibilities may beofinterest.potential opportunities to country. ofthischapter isnottoWhile thepurpose formulate recommendations, thefollowing listof in sustainablefrominfrastructure are country potentially numerousInvestment opportunities andvary Boxs 1.5: Asian Development Bank, Changing course: a new paradigm for sustainable urban transport. (Manila, Asian (Manila, Development Changing paradigm course:anew for Asian transport. Bank, Development sustainableurban

Asian Development Bank, Managing Asian cities: sustainable and inclusive urban solutions (Manila, Asian Development Bank, Asian ManagingAsian Bank, solutions(Manila, Development cities:sustainableandinclusive Asian urban Bank, Development Electric bikes andscooters have bikes great Electric potential to andreliabilityare reduce airpollution,butquality stillan transport-related

Asian Development Bank, ImprovingAsian energy andreducing Bank, Development carbon and security thePacific inAsia intensity 2009). (Manila, dokumente/en-transport-and-climate-change-2007.pdf on4July2010. dokumente/en-transport-and-climate-change-2007.pdf indeveloping cities,sourcebook Germany, (Eschborn, for policy-makers GTZDivision 44,2007);accessedfrom www.gtz.de/de/ Brannigan, and Charlotte Dalkmann see Holger 2010. Also Transport a and climate change, module5e,transport: sustainable 2009),accessedfrom www.adb.org/Documents/Books/Paradigm-Sustainable-Urban-Transport/default.aspBank, on 7 January Documents/Studies/Managing-Asian-Cities/mac-report.pdf on 13 May 2011. on13May Documents/Studies/Managing-Asian-Cities/mac-report.pdf prepared underRegional 2008). [Report Technical Assistance 6293:ManagingtheCitiesinAsia.] Accessed from www.adb.org/ Project 39653). Number: China: Guangdongenergyandenvironment improvement efficiency investment program 2008)(Asian (April Bank, Development of thePresident, proposed multitranche andadministration financingfacility ofgrant from theclean energy fund, People’s of Republic development of ADB issupporting “efficiency power plants” in China;see:Asian Bank, Development (Asian Development Bank, Project(Asian Bank, Number42001). Development and recommendation of thePresident: 2009) Report PhilippinesAsian Bank, energy Development project January , (Manila, efficiency environmental impacts (Manila, Asian Development Bank, 2009). environmental Asian Bank, (Manila, Development impacts and in India andanalysis two-wheelers Vietnam, Electric market Asianoutside China.See Bank, Development issue inmarkets Accessed from http://www.adb.org/Documents/Books/Urbanization-Sustainability/ 2010. on 9December and TrevorKanale, growth posed byand successes challenges rapid urban various of the discussion Extended canbefoundRoberts Brian in: ustainable infrastructure investment opportunities a,b,c

Urbanization and Sustainability in Asia–Case Studies of Good Practice Studies ofGood in Asia–Case 2006). Urbanization andSustainability Asian Bank, (Manila, Development e

d Urban planningthatprovidesUrban for sustainable f,g Report andrecommendation Report 15 A Changing Landscape, Evolving Policy Challenges and Opportunities 16 A Changing Landscape, Evolving Policy Challenges and Opportunities land andforest management,coastaland such issues asrural development, sustainable organizations on withcommunity of experience isincreasing.and civilsociety decades Several governments between effective partnerships s household levels. and bothatthecorporate sustainability benefits ofassisting investments inenvironmental by amore aware thatseesthe financial sector ispresented this potential. opportunity critical A and investment role willplay inrealizing akey and subregionalintraregional markets trade by corporations. Strengtheningaction regional more sociallyandenvironmentally responsible becoming increasingly aware anddemanding becomemoreworld apparent. Consumers are challenges ofoperatinginaresource-constrained willexpandasthe ofgoodsandservices life-cycle fundamental improvements thatreflecttheentire towardsin environmental more performance to move beyond improvementsOpportunities communications technology. and electronics, includinginformation and industries, automobiles suchastourism, of key improvements inenvironmental performance products. Competitive forcescertified are driving some consumerswillingto pay apremium for environmentally with soundgoodsandservices, a response to thegrowing demandfor market environmental andeconomicconcerns. strategy for mergingis animportant social, itdown tobrings levels thatare sustainable”— their environmental andultimately impact andactivities,whichreduceseconomic sectors “green jobs”—“the directemployment created in in producing suchtechnology. The creation of performance. of governments for improving environmental partner engaging asanactive sector private the Market changes. Thereis growing potential for the agriculture sector. bioenergy, in iscreating which opportunities new willalsoemanatesector from theproductionof their economies. Many green jobsintheenergy way ofimproving andboosting energy security focusing ondeveloping renewable energy asa whichare asChinaandIndia, such countries by 2030.Many ofthesejobswillbecreated in to translate into 20millionjobsinthatsector investment inrenewable energy isprojected takeholder engagement. 85 Eco-certification hasemerged as Eco-certification Experience withExperience 84 Global responsibility for stewardship.” on thebasisof “co-investment in,andshared land and ecosystem management practices have improvedimpacts. Suchpartnerships resource managementandsocio-economic solutions thatimprove of thesustainability institutional innovations canprovide local and networking empowerment, knowledge protection,biodiversity show thatcommunity management, agriculture and sustainability resources,marine integrated water resource such asclimate change. on globalissues, development andjointaction in theareas oftechnology transfer, strategy developing mutuallybeneficialpartnerships “green” for initiatives presents anopportunity ofKoreaon andtheRepublic as China,Japan has alsogrown. The leadershipofsuchcountries cooperation oroverseas development assistance throughcountries directinvestment, technical region other develop, to support theircapacity Regional cooperation. As ofthe countries information and communicationtechnologies. are andgrowing maturing withthespread of ofexperiences change andaccelerate thesharing professional thatare helpingto networks catalyse financial crisis. food, ofthetriple multiplied inthewake fueland tanks andgovernments. Suchinitiatives have including intergovernmental organizations, think have action come fromquarters, various taking thathave ofand actions reflected theurgency Green growth MCED wasadopted atthefifth commitments g commitments andactions investments, green shoots: ways. environmental inunprecedented sustainability promote synergies economicgrowth between and political statements have emphasized theneedto (Box 1.6).Sincethen,high-level forums and reduction) and7(environmental sustainability) development andfor MDGs1(poverty achieving strategy for2005 asakey sustainable achieving lobal andregional 88 Sinceitsadoptionby MCED, programmes 86 Social and Social 87 in in Environment Programme (UNEP). Economy Initiative, bothledby theUnited Nations stimulus fundingto green sectors, andaGreen governments to allocatesignificanta share of Nations for aGlobalGreen Deal, New callingon oftheUnitedcalls by theSecretary-General the auspicesofUnited Nations. These include placeunder globalinitiativesSeveral are taking economy mainthemes. asoneofthetwo focus (Rio+20) Development onthegreen United NationsConferenceSustainable on of theUnited Nationsto request thatthe2012 green growth Assemblythe General conceptsled The prominence ofthegreen economy and framework. into acomprehensiveand development aspects economic, environmental, technological, financial a green growth strategy, bringing together theOECDwithdeveloping2009 andtasked approved adeclarationongreen growth inJune approximately 80percentoftheglobaleconomy, (OECD), operation andDevelopment comprising members oftheOrganisation for Economic Co- growth statements intention oftheir to promote green forums international Major have issued also use efficiency, andenvironmental sustainability. synergies economicgrowth, between resource- initiatives have emphasized theneedto promote green jobsandemployment creation. These role inraisingtheprofile ofthepotential for hasplayedUnion Confederation akey [ITUC]) of Employers [IOE], andtheInternational Trade Organization [ILO], Organization theInternational (by UNEP, Initiative Jobs Labour theInternational February 2010 Nusa Dua Declaration, adoptedFebruary 2010NusaDuaDeclaration, agriculture andforest managementandsustainablefisheries. such asrenewable energy- buildings, energy, andwater-efficient sustainable transport, low-carbon enhance theearth’s naturalcapitalorreduce ecological scarcities andenvironmental risks—activities economy by ischaracterized substantiallyincreased investments thatbuildonand ineconomicactivities generated by theeconomy. Green growth isaprerequisite for buildingagreen economy. Agreen which involves minimizingresource useandnegative environmental for impacts eachunitofbenefit Policies andinvestments that promote green growth seekto improve the “eco-efficiency ofgrowth,” andhousing,meeting demandsfor construction andenergy. food production,transport, economic growth andwell-being whileusingfewer resources andgeneratingfewer emissionsin andsociallyinclusive development.carbon Pursuing green growth involves outliningapathto achieving Green growth canbedefinedaseconomicprogress thatfosters environmentally sustainable, low- Box 1.6:g 90 membersandfive prospectiveThirty reen growth –astrategy for sustainable development 89 The Green The 91 The The Japan, and the Republic ofKorea. andtheRepublic Japan, reform related to thegreening ofgrowth are China, pursued andinvested instrategies andpolicy thathaveAmong thecountries prominently n beyond.” of[their]response to and thecurrent crisis part to pursegreen[their] efforts growth strategies as members expressed theirintent to “strengthen onGreen Declaration Growth,Incheon inwhich Commission for Asia andthePacific adopted the 2010,theEconomicsession inMay andSocial ensure resilience ofoureconomy.” At itssixty-sixth use ofnaturalresources inorder to diversify and environmentalterm sustainability, sustainable and promote“to green growth, investments inlong- statement documentstheleaders’ determination Development. and Recovery Sustained The adoption oftheASEANLeaders’ Statement on ASEAN summitconcludedinHanoiwiththe the Asian and PacificIn region, 2010 theApril preparatory process.preparatory to to contribute through thiswork theRio+20 promoting theconceptandencouragedUNEP UNEP’s definingand leadingrole in further benefits for allnations.” andmultipledevelopment opportunities address current challengesanddeliver economic the green economy concept “can significantly by ministers ofenvironment, that acknowledges growth wasstated inthe6 sustainable economic growth. economic sustainable more environmentallyinitiatives to support ofKoreahaveRepublic establishedinternational ational initiatives 93 In addition, support to pursue green addition,support In 92

It alsoacknowledged It th MCEDDeclaration. 94 95 Japan andthe Japan Many other

17 A Changing Landscape, Evolving Policy Challenges and Opportunities 18 A Changing Landscape, Evolving Policy Challenges and Opportunities in low-carbon power generation(renewablein low-carbon plans.economic recovery Stimulus investments in commitmentsto “green” investments under The Asian andPacific region isleadingthe globe are highlighted inFigure 1.3. examples ofgreen initiatives andcommitments green growth.statements supporting Some have andMongolia, Maldives mademajorpolicy countries, includingCambodia, Fiji, Kazakhstan, Figure 1.3:Examplesofgreen policiesandinitiatives since 2005 10 8 5 stimulus investments, atabout23percent. the highestshare ofgreen investments intotal projects from this region, buttheregion alsohad forthe globalinvestments green earmarked greening growth. Notonlywere thirds two of have beenheraldedasamajorstep towards grid), andwater supplyandwaste management electricity (buildings, publictransport, efficiency energy, capture carbon andstorage), energy 16 6 9 15 2 17 3 14 13 1 7 11 96

18 12 4 9 8 7 6 5 4 3 2 1 • NationalGreenTechnologyPolicy(2009) • GreenBuildingIndex(2009) • NationalRenewableEnergyPolicyandActionPlan(2010) MALAYSIA • Low carbonstrategy • ZhasylDamu—Green Development Strategy 2030 K • NewGrowthStrategy(2010)-placesgreeninnovationas • BasicLawonPromotionofCircularSociety(2001) JAPAN • RenewableEnergyProgram-aimtoexpand • REDDbenefitdistributionpolicy(2009) INDONESIA • NationalEnvironmentalPolicy(2006)-aimstoreduce INDIA • NationalEmploymentCentreDecree(2009)-aimsto FIJI • CircularEconomyLaw2009 • Long-term RenewableEnergyDevelopmentPlan(2007) • NationalClimateChangeProgramme(2007) CHINA • GreenGrowthRoadMap,2010 CAMBO • Green Poweraccreditationprogrammefor AUSTRALIA • NationalSolarMission • NationalMissiononEnhancedEnergyEfficiency top ofsevenstrategicareas. renewable energyto17%by2025 resources useperunitofeconomicoutput enterprise development promote greenjobs,productivityandsustainable renewable energy AZAKHSTAN DIA 15 14 13 11 10 12 18 17 16 • Ambitiousrenewableenergytargets TONGA, TUVALU PACIFIC ISLANDS:COOKISLANDS,FIJI, • Payments forecosystemservicespilotpolicyand • Capacitybuildingandinfrastructureforcertified VIET • AlternativeEnergyDevelopmentPlanand THAILAND • WaterEfficiencyFund(2007) • GreenMarkIncentiveSchemeforbuildings(2005) • SustainableDevelopmentBlueprint(2009) SINGAP renewableenergy • Innovationsforenergysavingandefficiency, • Targettoincreaseenergyefficiencyby40%2020 RUSSIAN FEDE • Resource recirculationpolicy • Green NewDealpolicy—2%ofGDPinvestmentin • FrameworkActandPresidentialDecreeonLow • NationalStrategyandFiveYearPlanforLowCarbon, REP • WasteMinimisationAct(2008)-encourageswaste NEW • MicronesianChallenge(2005)—conservationof30% M • Carbonneutralityby2020(targetsetin2009) MALD target (2008) Green Growth(2009) Carbon, GreenGrowth Green Growth(2008) minimization andadecreaseinwastedisposal of nearshoremarineandterrestrialareas projects organic teas ICRO OF UBLIC NAM ZEALAND IVES NESIA ORE K RATION OREA 10 8 5 16 6 9 15 2 17 3 14 13 1 7 11 18 12 4 3 2 1 9 8 7 6 5 4 • NationalGreenTechnologyPolicy(2009) • GreenBuildingIndex(2009) • NationalRenewableEnergyPolicyandActionPlan(2010) MALAYSIA • Low carbonstrategy • ZhasylDamu—Green Development Strategy 2030 K • NewGrowthStrategy(2010)-placesgreeninnovationas • BasicLawonPromotionofCircularSociety(2001) JAPAN • RenewableEnergyProgram-aimtoexpand • REDDbenefitdistributionpolicy(2009) INDONESIA • NationalSolarMission • NationalMissiononEnhancedEnergyEfficiency • NationalEnvironmentalPolicy(2006)-aimstoreduce INDIA • NationalEmploymentCentreDecree(2009)-aimsto FIJI • CircularEconomyLaw2009 • Long-term RenewableEnergyDevelopmentPlan(2007) • NationalClimateChangeProgramme(2007) CHINA • GreenGrowthRoadMap,2010 CAMBO • Green Poweraccreditationprogrammefor AUSTRALIA top ofsevenstrategicareas. renewable energyto17%by2025 resources useperunitofeconomicoutput enterprise development promote greenjobs,productivityandsustainable renewable energy AZAKHSTAN DIA within countries. Deeper levelswithin countries. ofnationaland Deeper events, ofcapacity-building a series including Programme have dialoguesand organized policy the ESCAPGreen Growth Development Capacity withmemberstates, andby ESCAPinpartnership forInitiative aCleanEnvironment, bothsupported on Green Growth, Kitakyushu theJapan-funded Network Initiative ofKorea-funded Seoul Republic activity. by capacity-building supported The The growing interest ofgovernments hasbeen 14 13 11 10 15 12 18 17 16 renewableenergy • Innovationsforenergysavingandefficiency, • Targettoincreaseenergyefficiencyby40%2020 RUSSIAN FEDE • Resource recirculationpolicy • Green NewDealpolicy—2%ofGDPinvestmentin • FrameworkActandPresidentialDecreeonLow • NationalStrategyandFiveYearPlanforLowCarbon, REP • WasteMinimisationAct(2008)-encourageswaste NEW • MicronesianChallenge(2005)—conservationof30% M • Carbonneutralityby2020(targetsetin2009) MALD • Ambitiousrenewableenergytargets TONGA, TUVALU PACIFIC ISLANDS:COOKISLANDS,FIJI, • Payments forecosystemservicespilotpolicyand • Capacitybuildingandinfrastructureforcertified VIET • AlternativeEnergyDevelopmentPlanand THAILAND • WaterEfficiencyFund(2007) • GreenMarkIncentiveSchemeforbuildings(2005) • SustainableDevelopmentBlueprint(2009) SINGAP Green Growth(2009) Carbon, GreenGrowth Green Growth(2008) minimization andadecreaseinwastedisposal of nearshoremarineandterrestrialareas target (2008) projects organic teas ICRO Transport Initiative Initiative, CitiesDevelopment Initiative, Sustainable Market Initiative, theCarbon Asian Bank(ADB) Development Energy Efficiency Consumption andProduction programme and the based efforts,includingUNEP’s Sustainable regional country- initiativesOther support been replicated inthefield. have that activities project pilot initiatives and subregional engagementhave resulted inpolicy OF UBLIC NAM ZEALAND IVES NESIA ORE K RATION OREA 19 A Changing Landscape, Evolving Policy Challenges and Opportunities 20 A Changing Landscape, Evolving Policy Challenges and Opportunities goods and services, who uses the goods and goods the uses who services, and goods patterns—how resources are usedto produce in the systems thatdefineeconomicgrowth can onlybeachieved by fundamental changes sustainabledevelopment thelongterm, In growth thanever. hasbecomemore important the environmental ofeconomic sustainability changing to Action address economiccontext. increasingly constrainedresource baseandina expansion. Future growth placeonan musttake overrun by rapid economicbeen alltoo quickly andtechnologicalframework progress have improvements intheenvironmental policy use thatmay have beenachieved by incremental environmental pressure andincreased resource growth. population levels and Reduced increasing percapitaresource consumption hurdles intheform oftheface ever- important statements ofcommitmentandinitiatives andencouraging,However these important (Box 1.7). Subregion intheGreaterInitiative Mekong Corridor Conservation andBiodiversity Initiative as theCoral Triangle ofBorneo Initiative, Heart for Asia, andecosystem-based initiatives, such of approaches. fragmented naturalecosystems through greater economiesofscale, efficiency, andintegration areas. ofconservation boundaries enlarge thefunctional of They help rebuild theconnectivity andobjectives. Suchcorridors thatare intheirfunction analogoustocorridors economiccorridors Economic Cooperation Program. Through thecreation theBCCI, ofbiodiversity ADBissupporting Core Environment Program aimsto mainstream environmental considerations into the GMS The organizations. conservation international astheAsian Bank(ADB), Development theGlobalEnvironmentpartners Facility (GEF) andseveral by such development issupported plan thatwillbeaccepted andimplemented by stakeholders.It through the collaborative development ofacomprehensive and management forest conservation deforestation anddegradation ontheislandofBorneo. The projectaimsto address thesethreats to address theconsiderablelossinforest andgreenhouse biodiversity gasemissionsfrom biodiversity-initiatives.asp 2011. on3May ADB’sSource: Asian Bank. Development Flagship Initiatives, Biodiversity accessedfrom http://www.adb.org/Environment/ and Timor-Leste) Islands Asian andPacific thePhilippines, Malaysia, (Indonesia, Papua countries Guinea,Solomon New The Box 1.7:i The organizations. non-governmental andinternational number ofdevelopment partners resourcescan helpstem lossesofmarine andrecover by entire a ecosystems andissupported as Amazon“the oftheSeas.” doessothrough aregionalprotected ofmarine It areas, network which

Coral Triangle Initiative oncoralreefs, provides andfood fisheries for aframework security six Biodiversity Conservation CorridorBiodiversity Initiative (BCCI) Subregion undertheGreater Mekong (GMS) Heart ofBorneoInitiative Heart nitiatives to promote investments innatural capital

to enhancethemanagementofa6millionsquarearea kilometre known is a joint initiative of Brunei Darussalam, Indonesia andMalaysiais ajointinitiative ofBruneiDarussalam,Indonesia

still insufficient. are is not relevant where accessto basic services growth” contexts strategies indeveloped country still great. Discussionsof “de-growth” or “no- going. For developing countries, theneedsare are directed the to keep “green growth engine” economic forces andfinancingmechanisms lostunlessunderlying initiatives may bequickly investmentsstimulus packages, orstand-alone momentum achieved towards green growth by forand thepurposes are whichthey used. Any thenature ofthegoodsandservices, services, many different across stakeholders economic, must increasingly integrate of theperspectives water, governance structuresandprocesses to climate, energy, food, fuel, landuseand To respond to the converging challengesrelated and evento communities. individual countries andregionalinternational governance structures governance challengesatmany levels, from A changing presents development context new governance new challengesfor

accorded high priority to differentaccorded of highpriority aspects ofKorea,governmentsand theRepublic have afewcapacities. cases, In suchasCambodia administrative, andenforcement monitoring by adequate andbebacked with stakeholders be developed through dialogue constructive to that, effective, be financing arrangements must must becoupledwithappropriate incentives and As discussedabove, environmental regulations consultation. andstakeholder accountability environment thatfosters transparency, appropriate levels offundingandagovernance managementsystems,predictable publicsector require politicalwillandleadership, strong and frameworks. At aminimum,thiswill policy sector environmental into thematicand concerns effectively mainstreaming green growth and transitioning to agreen economy willbe nationalgovernance challenge inA key accountable. vested interests are anddecision-makers held so thattransitionagendasare notcaptured by formulating suitableresponses to localchallenges in willneedto beabletoStakeholders participate and increaseduncertainty. vulnerability constraints give to conflicts,socialtensions rise asresource becomeincreasinglylikely important engagement. More inclusive governance will forwill offer more opportunities constructive for ofstakeholders self-organization and capacity processes, asheightened expectations,awareness feature prominently ingovernance structuresand mustalso indecision-making Inclusiveness resource management,amongotherareas. planningandnaturaldevelopment, urban can helptransformations inagricultural societies. More adaptiveapproaches andflexible to buildingmorecritical resilient economiesand the implicationsofemerging issues)willbecome signs warning andassessing early monitoring mechanismsforchange (includingincorporating to copewith,adapttoarrangements andshape and inflexible. ofgovernanceThe capacity compartmentalized, centralized, expert-driven, requires governance systems to becomefarless in alldimensionsofsustainabledevelopment The needto anduncertainty better managerisk development agendas. integration amonginstitutions, policiesand require greater cooperation,coordination and social andenvironmental regimes. This will

learned isprovidedlearned inChapter 4. governance, thefuture outlookandlessons ofdevelopments inenvironmentalAn overview do notposeadangerto developing countries. the greening ofgrowthfully support inways that to whichthe World Trade Organization isableto thatthereevident are limitationson theextent mandates. ongoingnegotiations, itisalso In inefficiencies introduced by overlapping atthegloballevel andstructuralworking coherent approaches institutions between andfinancingarrangements, lackofof policy from arising insufficientalignment performance in pillars ofsustainabledevelopment, shortfalls integration governance between ofthethree andChallenges includealackoflinkages green growth andsustainabledevelopment. multiple andintegrated challengesposedby donotyetsystems meetthe andpractices At thegloballevel, thatgovernance itisevident setting body. it istheresponsibilityofhighest-level policy- commissions orcommittees; inthecaseofChina, greening ofgrowth by establishinghigh-level resource-intensive economic growthpatterns. logical progress countered have by been quickly and technoenvironmental frameworks policy many countries, incremental improvements in andsignificantterns steps have in beentaken about theneedto alter current growth pat Although there hasbeengrowing awareness levels ofsociety. constraints, increasingly aconcern shared by all and energy—is now more closelytiedto resource ofbasicneeds—food,countries. Security water MDGs hasslowed andmay be reversed insome reductionandprogresspoverty towards other base. Further, whileeconomicgrowth continues, achieved onanincreasingly constrainedresource growing realization thatfuture growth mustbe vulnerability,and there and isauncertainty economies oftheregion contrastwithsignificant Predictionsevident. ofrapidgrowth for large ofclimate change,impacts have becomemore 2005 asresource limitations, alongwiththe economicrealityhasemergedA new since green andresilient growth Turning green shootsinto - - 21 A Changing Landscape, Evolving Policy Challenges and Opportunities 22 A Changing Landscape, Evolving Policy Challenges and Opportunities and resource-constrained future.and resource-constrained developing countries, to better faceanuncertain in those societies, and economies particularly same time, efficientuseofresources willallow presented landscape. At the inanevolving policy by graspingthe faceofcrisis theopportunities to transformbe achieved withouttheability in and resilience Green intersect. growth cannot provided2008 crisis thatgreen evidence growth intheregion. policymakers The response to the hasbecomea prominent of concern uncertainty and societiesinthefaceofgrowing and risk need to develop more resilient economies Furthermore, asdiscussedinChapter 5,the through systemic ratherthanincremental reform. circle”sustaining a”virtuous ofgreen growth and financingmechanismsbedirected towards requires economicforces thattheunderlying investmentspackages, orstand-aloneinitiatives achieved towards green growth by stimulus growth patterns. themomentum Maintaining changes inthesystems thatdefineeconomic only beachieved by inthelongterm fundamental through green growth, cautioningthatthiscan economy towards sustainabledevelopment waysChapter to 3describes ”overhaul” the implications. and analysespasttrends inresource useandtheir This isdiscussedinChapter 2,whichidentifies sustainable over thelongterm. resilience canhelpensure that economiesare measures thatsupportand specificpolicy approaches thatpromotepolicy greengrowth respond to different ofshocks. kinds Together, “green transition” shouldbebuiltto andcapacity shouldbeengagedinanyrange ofstakeholders careful lookatgovernance arrangements. Awide those already mostvulnerable, require amore for risks allstakeholders, butespeciallyRising on thepoliticalagenda. issue rise. Resource usehasbecomeanimportant human populations and affluence continue to in anunprecedented manner, atatimewhen both oil andstrategic are materials converging rapidly increasing scarcityofwater, land, food, nutrients, Pressures from arising climate changeandthe are thennotmade intheway resources are used changes closeexamination.If require particularly gains may already beslowing, resource risks resource usetrends. reductionWhere poverty and thePacific, callfor acloserexaminationof resource-intensive ofgrowth patterns inAsia the scaleandspeedofeconomictransition, The complexnature ofresource posedby risks also increasingly seenasglobalissues. related to energy useandland-usechange, are resource depletionandpollution, such asthose all governments intheregion. Local problems of waste and emissions, problems thatfacevirtually capital, theuseofresources andtheproductionof have alsoaccelerated degradation ofnatural development have raisedlivingstandards, but technologies, lifestyles and infrastructure Changing productionandconsumptionpatterns, for andenergy. materials base, have involved alarge increase indemand agrarian resource resource baseto anindustrial alongwiththetransitionfromurbanization, an and resource-intensive economicgrowth and most Asian and PacificIn economies, rapid andeconomicprosperity. socialstability term resources. threatenThese risks prospectsfor long- water, energy, land, mineralsandothernatural already influencingpoliticaldecisionsconcerning future is of allpeopleinaresource-constrained global economieswillbeableto meettheneeds introduction Chapter 2: reSOUrCe 1 The questionofwhether energy and waterenergy e USe t Asia and the PacificAsia (REEO). Economics for andOutlook Resource Efficiency: Nations Environment Programme (UNEP)report analysis prepared for primarily theUnited Research Organisationand somerelated (CSIRO) by theCommonwealth andIndustrial Scientific from flow material new accountsdeveloped countries. The analysis inthischapter draws Asia andthePacific, itssubregions andindividual andtrendspatterns innaturalresource usein This chapter provides insightsinto new the and economicsustainability. environmental of aspect grows important an is becoming more orlessresource efficientasit among otherfactors. Whether eacheconomy is resource endowments and demographic trends, patterns,production consumption and natural differs dependingon facedby eachcountry risks of people. ofsocio-economic The immediacy inaccessible orunaffordable to large numbers resourcesand managed, key willbeincreasingly REEO report. resources may consultthe orindividualcountries see morenatural detailedanalysisfor particular construction minerals and biomass each year. mineralsandbiomasseach construction This of metalores, minerals, industrial fossil fuels, resource user, consumingsome35billiontons and Pacific region had becometheworld’s largest century, theAsian ofthetwenty-first thestart By for many. contributed to improved standards ofliving whichhave andurbanization, industrialization Pacific have significant experienced restructuring, Since the1970s, economiesinAsia andthe asia andthepacific resource usetrends in rendS 3 : material S, 2 Readers whowishto Readers

23 Resource Use Trends: Materials, Energy and Water 24 Resource Use Trends: Materials, Energy and Water the world. the outlookfor theregion aswell astherest of toexpected continue, will significantly affect outside theregion. These trends, whichare quantities ofresources are beingsourced from dramatically inrecent decades, andincreasing the compositionofresources used haschanged tothe world produce oneunitofGDP. addition, In three timestheinputofresources astherest of As of2005,the Asian andPacific region required global gross domesticproduct(GDP). the region accountsfor onlyabout30percentof billion tons use, ofannualglobalmaterial whereas represents about60percentoftheestimated 60 : CSIRO andUNEPAsia-PacificSource: CSIRO Flow Material Database, www.csiro.au/AsiaPacificMaterialFlows. suchasoverburden inminingorby-products inagriculture,extraction), are notincluded. that becomecommodities. mobilized thatdonotenter Materials theeconomic process (thatis, unused Data are presented intons andmeasure thatenter materials theeconomicprocess, thatis, materials addressed inmore comprehensive nationaldatasetsandstudies. water andnuclearpower, are notrepresented, norare waste andemissions. couldbe These aspects embodied flows, flows andmaterial by addition,otherresource economicactivity. In flows, suchas flow ofmaterial Aspects methodologynotcovered by thesebasicaccountsincludeunusedextraction, metal ores minerals,minerals)and12sub-categories. andindustrial andconstruction AsiaPacificMaterialFlows. Dataare presented for four (biomass, of materials maincategories fossil fuels, Asian andPacific hasbeenusedforandisavailable onlineatwww.csiro.au/ countries thisreport A comprehensive datasetfor for flows material intensity andmaterial 1970–2005thatcovers most Boxm 2.1: osrcinmnrl For concrete minerals Construction minerals ores Metal andindustrial Coal Fossil energy carriers Biomass anmtra aeoisSbctgre items Sub-categories materialmain categories m aterial flow database for a ain material categories ofthea For otheruses minerals Industrial ores Non-ferrous metal oresIron Natural gas Petroleum Wood products Grazed biomass Crop residues crops Primary sia andthep sian andp

on regional andnationalscales, becomecritical accumulation ofstocks andcould, ifimplemented oninputs, outputsandaccounts report Similar to financialaccounts, resource flow of capital. in thesystem are alsoquantifiedto create astock oftime. period a certain The remaining materials energy thatare usedinany definedsystem over in order to and tracktheamountofmaterials resource flows are organized and quantified resource In countries). flow accounting, natural Asiaof Pacific the and its of most with (along this majortransition,covering thefive subregions this chapter (Box 2.1)assessthephysical effects of Thenational resource flow presented accounts in gravel Dimension stones, Sand andgravel Copper, aluminium Methane Crude oil Black andhard coal Timber Grass andhay Straw Cereals, vegetables acific acific material flow accounts construction forBulk materials sectors manufacturing and the construction Strategic for materials Energy material Energy andstructural livestock and Human nutrition usesectors main

t Note : GJ:gigajoule, thatis, 10 metabolic profiles andtheirfuture trajectories”, Ecology (2008),vol. of Industrial 12,No. Journal 5-6,pp. 637–656. Source: Source: t reflecting therelatively low level ofeconomic for about 25 per cent of global material use, 1970,theregionthese patterns. In accounted intheAsianrisen andPacific region inlinewith flow datarevealMaterial thatresource usehas rapid growth. arguably more acute given theregion’s size and Asia andthePacific, theregion’s challenges are growth notbeenlimited hashistorically to of three to five. While resource-intensive andenergycapita materials useby afactor resultseconomy typically inanincrease inper the transitionfrom anagrarian to anindustrial (or “metabolic profiles”). (or “metabolic andenergy ofmaterial patterns flowstypical systems agricultural have andindustrial Both systems. and changesinproductionconsumption rapid growth inthe use of mineral resources, force, amove to fossil-fuel-based energy systems, reductionintheagricultural labour urbanization, has beenenabledandreinforced by large-scale become industrialized societies. This change the Pacific to on journeys have embarked Since the1970s, inAsia mostcountries and r provided inAnnex1. ofresourcedescription flow accountingis of sustainabledevelopment. Amore detailed inthecontext to planninganddecision-making a able 2.1: a able 2.2: hr farclua ouainpercentage Share ofbiomassinenergy use use/unitareaMaterial Energy use/unitarea Share ofagricultural population Population density Per use capitamaterial Per capitaenergy use Asia andthePacific Rest ofworld Rest World ising resource use CSIRO andUNEPAsia-PacificCSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July2010. F. M.Fischer-Kowalski, andN.Eisenmenger. H.Schandl Krausmann, transition:pastandpresent globalsocio-ecological “The verage annualgrowth rate ofdomesticmaterial consumption, 1970-2005 grarian andindustrialmetabolicregimes 9 joules. 4 As shown in Table 2.1, 9018 9019 9020 2000-2005 1990-2000 1980-1990 1970-1980 3.2 1.9 2.5 percentage tons/hectare GJ/hectare osprcpt - 52 3-5 3-5 15-25 150-400 3-6 40-70 People/km tons percapita GJ percapita Unit

Consumption growth percent/year use. Similar trends have beenwitnessedwithenergy regions combined. alltheother use,global material overtaking the region hasaccounted for well over halfof 35.3 billiontons (Figure 2.1).Since the mid-1990s, by 50percent,from 23.6billiontons to about minerals) intheAsian andPacific region grew (including biomass, fossil energy ores carriers, and consumption and2005,material 1995 Between year from 2000to 2.2). 2005(Table andthenincreasedfinancial crisis to 6.0percent/ annum from 1990to 2000asaresult oftheAsian consumption growth slowed to 2.3percent were well above therest oftheworld. Material of more than3percentfrom 1970to 1990,which 231.7 exajoules(EJ). energy at used 45percentofglobalprimary than global energy use and, in 2008, the region energy useinAsia andthePacific grew faster rates consumption ofannualdomesticmaterial rest oftheworld. This wasreflected ingrowth much highereconomicgrowth rates thanthe thefollowingIn decades, theregion experienced muchoftheregion.that characterized development andlow standards material ofliving consumption. use since2000,similarto thetrend for material There hasbeenaccelerated growth inenergy highly correlated throughout thewholeperiod. consumptionweresupply anddomesticmaterial 2 6 During mostof thelastfour During decades, 3.2 0.5 1.8 gainidsra Factor industrial agrarian 9 03 0.1-0.3 0.1 10-30 10-30 3-10 <600 <10 >95 <400 <30 >80 <40 2<010-30 <50 <2 7 Moreover, energy primary 2.3 1.3 1.8 6.0 0.8 3.7 5

25 Resource Use Trends: Materials, Energy and Water 26 Resource Use Trends: Materials, Energy and Water Source: 1990, 1995,2000and2005 Figure 2.2:Greenhouse gasemissionsinAsia andthePacific, by subregion, Source: GHG: greenhouse gas the Pacific rose from 14.5 billionto 19.5billion greenhouse gas(GHG) emissions from Asia and Following increases andenergy in material use, inputs inagriculture. andfossil activities; fuelandfertilizer construction generation;iron, steel andcementforelectricity products including, to, butnotrestricted coalfor emissions because oftheuse of carbon-intensive growthbetween useandcarbon inmaterial waste flows. There is, for instance, aclose link and growing stocks, material emissionsand in increased pressures ontheenvironment andenergy material usecommonlyresultsRising Figure 2.1:Domesticmaterial consumption for Asia andthePaci c andtheworld, 1970–2005 CSIRO andUNEPAsia-PacificCSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July2010. World Resources Institute, Climate analysisindicator tool (http://cait.wri.org).

Consumption (million ton) 10 000 20 000 30 000 40 000 50 000 60 000 70 000 Pacific 90 17 90 18 90 19 00 2005 2000 1995 1990 1985 1980 1975 1970 0

GHG emissions 8 (million tons, carbon dioxide equivalent) North andCentralAsia 10 000 12 000 14 000 16 000 18 000 20 000 2 000 4 000 6 000 8 000 0 9019 002005 2000 1995 1990 South andSouth-WestAsia also accelerated 2000, after (Figure 2.2). The rate ofGHGemissionsgrowth tons inonly15years, anincrease of34.5percent global energy-related emissionsby 2030. inAsiacountries for accounting 45percentof are to continue, expected with developing in overall andenergy material use. These trends for many economicactivities,including development andwell-being. Water isrequired water arequality aprerequisite for economic resource ofall. quantitiesof high Reliable flow accounting, itmay bethemostimportant While water isusuallynotcovered by material World South-East Asia t of world Rest of East andNorth-EastAsia 9 mirroring thetrends mirroring 10

Asia andthePaci c, 1970and2005 Figure 2.3:Shares ofmainmaterial categories indomesticmaterial consumption in materials. This comeswithgreater amountsof towards systems andmineral andindustrial urban away from agricultural systems andbiomass, useprofiles,fundamental changesinmaterial systems, technologies andlifestyles involves fromMoving production traditionalto modern a (Box 2.2).for activities andindustrial food security ofwaterthe availability for households, andwater recharged. This willhave repercussions critical on faster canbeand waterthanthey reservoirs Pacific are runningdown theirnaturalaquifers and households. inAsia Many countries andthe agriculture, livestock industries, manufacturing Source: East and North-East Asia usedless water average thantheworld East andNorth-East at509m average of0.12m produce addedeconomicvalue andhumandevelopment outcomes. and water technologies aimedatfostering more effective andlessintensive use ofthisvitalresource to significant potential for technical improvements water systems, inurban agricultural water-use practices intensively whilepotentially ofwater degrading for thequality downstream uses. There appearsto be by large waterandmeansthat usageinlow-incomeresources economicactivities are usedvery Box 2.2: user globally. 2000,Asia andthePacific In used2,383billioncubicmetres (m over scarce resources. contrastto andenergy, materials In Asia andthePacific isby farthe largest water severe stress onmajorriverandgroundwater tensions systems usersandcountries between andrising forDemand water inthe Asian andPacific region to isexpected soarinthedecadesto come, leadingto In 2000,theoverall water forIn intensity Asia andthePacific was0.27m ofusebecomesimperative. efficiency naturalreservoirs, high water useandshrinking especially large amountsofwater witharatioofupto 1,000tons ofwater/ton ofcereal. a situationof In Agriculture isthe biggestuser, followed andhouseholds. by industry The productionofcereals requires Asia to 0.12m manufacturing industries andhouseholds, industries orabout63percentofthe3,765billionm manufacturing Central Asia wasthelargest userat1,011m The regional average water useof644m changing resource base CSIRO andUNEPAsia-PacificCSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July2010. and industrial Metal ores minerals w 7% ater useandintensity ina 3 /$ in East and North-East Asia, a difference/$ inEastandNorth-East of10. ofafactor This overall pictureiscaused 3 /$. rangedfrom 1.1m inwater efficiency The variability Construction Fossil Minerals Fuels 20% 26% 1970 Biomass 48% sia andthep 3 percapitawasabove average theworld of619m 3 percapita. and industrial countries to support thegrowing to economic support countries plantsinmany Asianmanufacturing developing and infrastructure used to cities, build transport have materials and otherbulkconstruction been used (Figure 2.3).Large amountsofsand, gravel now represent about50percentofallmaterials over thelastthree decades. minerals Construction used.all materials This haschangeddramatically 50percentoftimber for comprised construction Agricultural crops, animalfeed, fuelwood and usewaslargelymaterials basedonbiomass. 1970s, the Until Asian the andPacific region’s global levels. environmental atthelocal, regional policy and waste streams, creating challengesfor new bulk flows, ofpollution,andnew types new Metal ores acific minerals 8% Fossil Fuels 16% Construction 3 /$ compared withtheglobal Minerals 3 3 per capita, while North and percapita,whileNorth 2005 /$ in South and South-West/$ inSouth 49% 3 ) ofwater inagriculture, Biomass 28% continued page. onnext 3 usedglobally. 3 percapita. 27 Resource Use Trends: Materials, Energy and Water 28 Resource Use Trends: Materials, Energy and Water Source: AQUASTAT, World Bank(2000) World Indicators Development Water intensity (water useperGDP), 2000 intensive economies, suchasAustralia (0.06m different users. become stressed orhighlystressed, andtensions areto increase likely nationsandbetween between riverbasinswill by 1.5andpublicdemandby 1.8.Many ofthetransboundary by of1.3,industry afactor andagriculture. 2025,agricultural waterhouseholds, requirements By industry are to expected increase groundwater resources facesevere stress, accompaniedby intensifying competitionfor water between Pressure ontheregion’s depleted water resources willcontinueto rise. Many riverbasinsand worldbank.org/data-catalog/world-development-indicators on12July2010. worldbank.org/data-catalog/world-development-indicators main/index.stm on11July2010; World D.C., Bank. World (Washington, 2009),accessed from Indicators http://data. Development Source: intensive countries, suchas Tajikistan (13.9m Differences in water are intensities countries between even more pronounced, from highly water countries, suchas Viet Nam(2.3m Per capitawater useintheAsian andPaci c region, itssubregions, andtheworld, 2000 Source: South andSouth-WestAsia

East andNorth-EastAsia cubic metre /$ Food andAgriculture Organization oftheUnited Nations, AQUASTAT, accessedfrom www.fao.org/nr/water/aquastat/ North andCentralAsia AQUASTAT 1 000 1 200 200 400 600 800 Asia andthePaci c 0 South-East Asia The Paci c East andNorth-EastAsia World .002 .006 0.80 0.60 0.40 0.20 0.00 3 /$), Bangladesh(1.7m South-East Asia The Paci c 3 3 /$), New Zealand/$), New (0.04m /$) and Turkmenistan (8.5m Asia andthePaci c 2000 South andSouth-WestAsia Cubic metres/$ 3 /$) and India (1.4m /$) andIndia World 3 /$) and Japan (0.02m /$) andJapan 3 /$), to relatively intensive 3 North andCentralAsia /$), andtheleastwater- 1.00 3 /$). 1.20 construction minerals.construction There are somecommon fossil fuels, minerals,industrial metalores and five flow major material biomass, categories: Pacific 1970 and2005,for between countries consumptionformaterial Asian selected and Annex 2presents datafor timeseries domestic severe onlocallivelihoods. negative impacts forestsundisturbed andwetlands, has andoften at theexpenseofothercrops orofrelatively the Asian andPacific region come hasoften biofuel feed stocks, expandedcultivationin thecaseofoilpalmandotherproduction. In for biofuelsandfood arablelandbetween fuel dependency, competition willexacerbate This, combinedwithpressures to reduce fossil on thelives ofpoorandlow-income people. can have severe ontheeconomy and impacts volatility hasshown thatfuelprice experience region offossil are fuels, importers andrecent As inthe discussedinChapter 1,mostcountries acrossenergy theregion. security energy demand, pollution(global andlocal), rapidly. This will have significant implicationsfor toconsumption isexpected increase more energyAsia, passengerandfreight transport energycent ofworld requirements. developing In up to 2025,accountingfor anadditional30per to isexpected increasefor dramatically transport fuels. As aresultenergy ofrapidmotorization, use is higherpercapitaconsumptionoftransport affluence outcomeAnother expected ofrising conversion efficienciesbelow 3.5percent. products. productionsystems Beef usuallyrunat energy containedinfeed to energy intheanimal lessthan20percentofthegross convert typically to produce eggsandmeat,as usingpoultry systems.Even relatively efficientsystems,such conversion efficienciesofanimalproduction constant. This is dueto thelow feed energy- demandspercapitaremaincalorific relatively production from arableland, even ifoverall affluent willincrease competitionfor biomass inanimalproteinricher becomemore asthey forThe tendency societiesto changeto diets increased since1970andareto accelerate. likely in relative pressures terms, total extractive have Even thoughbiomasshasbecomelessimportant lifestyle with all the commodities that furnish it. lifestylecommodities thatfurnish with allthe class ofconsumerswhocanaffordmodern a have alsohelpedto formopportunities anew businessandemployment andnew capacity and Indonesia Thailand. Growing economic ofsucheconomiesasChina,India, importance 12 13 11 GDP growth. to populationandunrelatedclosely linked to is alsoincreasing butataslower speedandis and areto growing closelylinked GDP. Biomass fossil fuelsare thefastest growing components of materials. and materials Second, construction national economiesare usinggreater amounts accounts. First, withtheexception most ofJapan, features flow amongthenationalmaterial of world production. of world billion tonscement representing of centper 45 2005,Chinaproduced overproduction. In one tons ofcement in1970,1.7percentofworld production. China produced about 10 million growth ininfrastructureinvestment andcement of China’s growth isreflected by therate of Federation (6.1percent). Thescaleand speed (12.5percent)andthe Russianby India 2005, Chinausedhalfofallmaterials, followedIn (see distance, byandIndia Japan China, Table 2.3). intheregion,user ofmaterials followed, atsome was by Republics farthelargestof SovietSocialist 1970,theUnion used.per centofallmaterials In Fewer are than10countries responsible for 80 provided inAnnex2ofthisreport. consumptionformaterial are countries selected Dataondomestic (most notablyChinaandIndia). activities and service engage inmanufacturing from agricultural basesto theirpre-industrial, others have atransition onlyrecently started Zealand), ofKoreaandNew Republic Japan, (OECD)operation andDevelopment (Australia, members oftheOrganisation for Economic Co- region have fullyindustrialized economiesandare considerably.vary While afew inthe countries consequence, subregional andnationaltrends structures andresource endowments. As a in itslevels ofeconomicdevelopment, economic Asia andthe Pacific isaregion ofgreat diversity differences inresource use Subregional andcountry and show an elasticity ofaboutone;thatis,and show anelasticity they Asia,fastest, especiallyinEastandNorth-East growth. andfossil materials fuelsgrew Mineral appear to dependonthelevel ofeconomic population growth. Biomassusedoesnot 1970 and2005wascloselyrelated to growing inallsubregions component between of theireconomies. Biomasswastheslowest different stageswithregard to the “mineralization” Figure 2.4shows thatdifferent subregions are at 14

29 Resource Use Trends: Materials, Energy and Water 30 Resource Use Trends: Materials, Energy and Water Source: *Presented indescendingorder of2005values. APAC: Asian andPacific countries. andUNEPAsia-PacificSource: CSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July2010. by Australia’s ataround usepattern materials 34 consumption inthePacific subregion, dominated subregions, asshown by Figure 2005, 2.5.In among consumption(DMC) domestic material There are differences also stark in percapita same proportions. are scaledwitheconomicgrowth inalmostthe t Figure 2.4:Domesticmaterial consumption by mainmaterial categories, 1970and2005 able 2.3:Share ofdomesticmaterial consumption, 1970,1990and2005 China India Socialist Republics Socialist Union ofSoviet Russian Federation Japan Indonesia Australia Turkey Thailand Pakistan Other APACOther APAC

CSIRO andUNEPAsia-PacificCSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July2010. Consumption (million tons) 10 000 15 000 20 000 25 000 5 000 0

East and North Asia

Biomass South-East Asia 106 2 0 529 35289 21001 11 086 2 46 9 71 78550.6% 17855 27.1% 5693 14.6% 1 622 3 20 2 25 0 12.5% 4403 12.5% 2622 12.0% 1 331 5 11 8 29.0% 6086 41.1% 4 552 6 23 2 .%1484.2% 1468 8.2% 1729 12.3% 1 364 4 .%2191.%71620.3% 7176 10.3% 2169 9.4% 1 043 1970

9 .%5428 8 3.3% 1180 2.8% 594 2.7% 296 9 .%6230 1 2.6% 913 3.0% 622 2.7% 299 5 .%5228 6 2.5% 865 2.8% 592 2.3% 253 2 .%4522 4 2.1% 749 2.2% 465 1.1% 126 9 .%4820 7 1.9% 679 2.0% 428 1.8% 199 South and South-West Asia - 1970 Construction minerals

North and

Central Asia Consumption, milliontons andpercentage - The Paci c

and becomemore was affluent.Suchapattern industrializewhen thesesubregions further consumptionmayin materials besignificant and South-West Asia suggestthatfuture growth low Asia levels ofDMCinSouth-East andSouth tonsat about13 percapita. The comparably largest Asia) subregionnext (EastandNorth-East tons percapita, wasthree timeshigherthanthe Consumption (million tons) Fossil fuels 10 000 15 000 20 000 25 000 5 000 - 1990 0

East and Metal oresandindustrialminerals North Asia

South-East 6.1% 2154 - Asia 2005

South and South-West Asia - 2005 North and Central Asia

The Paci c - : CSIRO andUNEPAsia-PacificSource: CSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July2010. average of1.5percent. 2005and2030, wellbetween above theworld growing energy demandof2.4percent/year energy. This may translate into arelatively fast- increase thedemandfor willfurther industries communities. manufacturing Buildingnew their systems, andelectrify and transport urbanize, infrastructure to establishmodern continuetouse isto ascountries be expected efficiently across sectors. Future growth inenergy energyused isnotalwaysthat is allocated most andlow percapitaGDP.productivity Also, the comparably low, translatinginto low labour many economies inAsia and thePacific isstill develop.as they particular, In energy usein low percapitaDMC,signaling future growth have developing countries Some remarkably imports. policiesandahighvolumeresource-use of restructuring,economic through andJapan such astheRussianFederation becauseof have adeclineinpercapitaDMC, experienced inAsiacountries andthePacific. Afew countries Australia hasthelargest percapitaDMCofall from subregionalwhere divert countries patterns. of thesubregional trends showing butalso forDMC many individualcountries, confirming Figure of percapita 2.6shows acomparison from 1990to 2005. showed thelargest increase inDMCofallregions Asia, whichwitnessed inEastandNorth-East 1975, 1990and2005 Figure 2.5:Domesticmaterial consumption intheAsian andPaci c region anditssubregions, South andSouth-WestAsia East andNorth-EastAsia North andCentralAsia Asia andthePaci c South-East Asia The Paci c 15 01 02 03 40 35 30 25 20 15 10 5 0 Asian and Paci c countries, 1990,2000and2005 Figure 2.6:Domesticmaterial consumption in 11 July2010. accessed from www.csiro.au/AsiaPacificMaterialFlows on Source: 1975

Russi Pa Brunei Kor

Ir

a pu an, Tons percapita T an ea, New Z

urk N D IslamicRep. B Ka CSIRO andUNEPAsia-Pacific CSIRO Flow Material Database, Uz Kor Phi Federat Az

Dem.Rep. e angla SIng Ca a Kyrg I Mya Mo

Ta w w menistan ndo Vi Sri zak russalam A Tha Malaysia beki Pakistan La erba Georgia lippines mbodia ea, Rep. ustr jik

et Nam G ealand T L ngolia o PDR Japan 1990 Nepal apore China urkey

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a uine yzstan nmar nesia I iland anka istan desh ndia stan ijan alia ion F iji 0 1990 02 04 06 70 60 50 40 30 20 10 Consumption (tonspercapita) 2005 2000 2005 5045

31 Resource Use Trends: Materials, Energy and Water 32 Resource Use Trends: Materials, Energy and Water and itssubregions, 1975,1990and2005 materialsFigure intheAsian andPaci c ofprimary 2.7:Domesticextraction region of crudeoil. and Central Asia willWhile North growing energy demandwillbemetby imports particular,In ofthefast- anincreasing proportion global resource markets. rapidly, player the region in animportant making the region large andgrowing isalready very total amountofresources sourced from outside levels are stilllow,While percapitanetimport the increasingtrade liberalization.globalization and embedded inglobaltradeflows, drivenby Meanwhile, theregion hasbecomemore for foreign markets. produce agricultural crops, ores andfossil fuels (agriculture,industries andmining) forestry subregions primary have large export-oriented Central Asia (Figure inboth 2.7).Many countries followed ofmaterials andextraction by North The Pacific shows thelargest percapitadomestic infrastructure. of many countries, especiallyto build essential andurbanization theindustrialization supporting to increasing extraction domesticmaterial consumption andenergy useare linked The fast-growing rates ofdomesticmaterial materials e CSIRO andUNEPAsia-PacificSource: CSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July2010. xtraction and importation of andimportation xtraction South andSouth-WestAsia East andNorth-EastAsia North andCentralAsia Asia andthePaci c South-East Asia The Paci c 01 02 03 40 35 30 25 20 15 10 5 0 Extraction (tonspercapita) 1975 on imports. other subregions willincrease theirdependency offossilcontinue to fuels, beanetexporter population-density economies (Japan, Republic economies(Japan, population-density natural resources, whereas industrialized high Zealand )usuallyhave highDMCandexport andNew(for example, Australia, Kazakhstan economies lowIndustrialized, population-density ofresourcedeveloping) andextent endowments. including development status(industrialized, ofresources, orimporter is anetexporter country influencewhethera Many factors West ofmaterials. Asia isalready anetimporter increasing andSouth South reliance onimports. balances thatare alsoincreasing -signaling capita accessto resources, have physical trade ratessubregions andlow per withhighpoverty Asia, andSouth-WestSouth-East andSouth Asia, consumption(Figurematerial 2.8). ofresources toimports satisfyitsgrowing rate of constrained subregion, hasbeenincreasing its economically diverse anddynamicbutresource- Asia, particular, anIn EastandNorth-East resources to meeteven current requirements. that are andrequire resource-poor tremendous the mostpopulouseconomies, butalsointhose also otherresources, to occurnotonlyin islikely offuel, and onimports dependency Increasing 1990 16 2005 5045

1975, 1990and2005 Figure 2.8:Physical trade balance for theAsian andPaci c region anditssubregions, natural resources. will beunderincreasing pressure their to export Lao People’s andMongolia) Republic Democratic with low-population densities(for example, the ofresources,become netimporters whilethose low resource will endowments), suchasIndia, high populationdensities(commonly aproxy for develop, those with further developing countries Trendsasthat, suggest inindustrializedcountries many oftheirnaturalresources.and import of KoreaandSingapore) have muchlower DMC that theuseofresources translates asefficiently exposure to resource andto ensure supplyrisk specificstepswill needto to take reduce their ofmaterials thatareCountries netimporters that currentlytheregion. characterize continue thestrong economicgrowth trajectories oftheregionthe ability to anditscountries constrainpolitically motivated) couldseriously disruptions insupply(whethereconomicallyor provide sufficientquantitiesofraw materials. Any associated suppliersto withrelying onexternal trends would increase theexposure to risks and householdbudgets. Acontinuationofthese fuels, ores andfood, addingpressure to national foreventually prices bereflected inrising fossil The high demandfrom Asia andthePacific will CSIRO andUNEPAsia-PacificSource: CSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July2010. Note: Physical trade minus exports balance equals imports South andSouth-WestAsia East andNorth-EastAsia North andCentralAsia Asia andthePaci c South-East Asia The Paci c 17

1 1 1 1 1 8- 4-2 -4 -6 -8 -10 -12 -14 -16 -18 Balance (tonspercapita) 1975 competitiveness of other export sectors. competitiveness ofotherexport areof thematerials high),thusreducing the for to appreciate thecurrency (whentheprices may this as create purposes pressurefor export economicsectorsconcentrated into extractive There are alsodrawbacks for aneconomy to be growth iscritical. eco-efficient and humanwelfare suchcircumstances, gains. In progressas possibleinto positive socio-economic until 2000. stagnatedbut in theAsian andPacific region continuedforintensity therest oftheworld improvementsuntil about1991,when inmaterial phenomenonandcontinuedbeen aworldwide ofproduction)appearsto intensity material have This growth (thatis, adeclineinthe inefficiency trend for thethree decadesfrom 1970to 2000. twentieth century.twentieth resource improved intensity throughout the improve resource over intensity time. Global ofeconomicsystems to isacharacteristic It trendsresource efficiency in creating asoundbasisfor future growth. economic gainsfrom theseresources are invested resources andneedto ensure for that export, non-renewabledependence on extractive economies facethechallengeofreducing their 1990 2005 19 Figure 2.9illustrates this 18 20 These

33 Resource Use Trends: Materials, Energy and Water 34 Resource Use Trends: Materials, Energy and Water Material intensity isexpressed intensity as DMC/GDP(exchangeMaterial values, 2000prices). andUNEPAsia-PacificSource: CSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July2010. was sufficientto changethemoderate decrease while therelative size oftheregion’s economies inAsiaintensity andthePacific increased rapidly, analysis in2005,materialthe endof least) (at However, reversing previous trends, from 2000to its subregions andtheworld, 1990,2000and2005 Figure 2.10:Material intensity, domesticmaterial consumption perGDPinAsia andthePaci c, Material intensity isexpressed intensity asDMC/GDP(exchangeMaterial values, 2000prices). Figure 2.9:Material intensity for Asia andthePaci c, rest ofworld andworld, 1970–2005 South andSouth-WestAsia East andNorth-EastAsia North andCentralAsia Material intensity (kilogrammes/$) Asia andthePaci c South-East Asia 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 90 17 90 18 90 19 00 2005 2000 1995 1990 1985 1980 1975 1970 0 The Paci c World 0 2 4 Intensity (kilogrammes/$) 1990 natural resources lessefficiently, mainlybecause the firsttimeinacentury, wasusing theworld a moderate increase for asawhole. theworld For for intensity in material therest into oftheworld World 6 2000 t of world Rest of 2005 8 012 10 Paci c countries, 1990,2000and2005 Figure 2.11:Material intensity inAsian and values, 2000prices). isexpressed intensity asDMC/GDP(exchange2010. Material accessed from www.csiro.au/AsiaPacificMaterialFlows on11July Source: efficient, asshown inFigures 2.10and2.11. the region arebecomingmore actually resource trends isthatmostsubregions in andcountries The apparent paradox overall these in regional 10.8 MJ/$in2005. movedof theworld from 1970to 15.7MJ/$in now ataround 19MJ/$.For therest comparison, hasstagnatedintensity andthengrown, andis MJ/$ in2001.Sincethen,overall regional energy produced, butimproved steadily to 18.4(MJ)/$ Asia andthe Pacific usedaround 25megajoules energy-intensive astherest 1970, oftheworld. In Pacific economieshave as always beentwice throughout thelastfour decades, Asian and Figures for energy show intensity that, intheAsian andPacificactivity region. resource useisgrowing faster thaneconomic Russian Federation Papua New Guinea Brunei Darussalam Iran, IslamicRep. Turkmenistan New Zealand Bangladesh Kazakhstan CSIRO andUNEPAsia-PacificCSIRO Flow Material Database, Uzbekistan Korea, Rep. Philippines Kyrgyzstan Azerbaijan Singapore Cambodia Indonesia Mongolia Tajikistan Viet Nam Sri Lanka Australia Thailand Malaysia Pakistan Lao PDR Georgia Turkey Japan Nepal China India Fiji 5 0 1990 Intensity (kilogrammes/$) 2000 5 02 53 540 35 30 25 20 1510 2005 into account. including embodiedresource flows, were taken look different ifaconsumptionperspective, energy emissionsfor andcarbon nationswould emergingan is literature bodyof on how material, opposite isthecasefor resource exporters. There arein thesecountries misleading. somewhat The that regard,In higher levels ofresource efficiency levels. their relatively higherresource-efficiency of beartheexternalities typically other countries processes, sothatresource-intensive primary economies are abletomany externalize oftheir noted thatindustrialized, highpopulation-density data,itshouldbe presenting country-specific In to resource inthefuture risks (Box 2.3). become morecould efficient pathand vulnerable the economy is growing along a less material- over thismeasure time. isincreasing If over time, water andmaterials, are used)—mustdecline in general, resources, orspecific suchasenergy, withwhichresourcesa measureefficiency ofthe of GDP—that is, “resource intensity” (usedhere as amount ofresources usedto produce one unit use andto beenvironmentally sustainable, the economic growth to bedecoupledfrom resource the rate ofchangeinresource use(Figure 2.12).For decoupling by relating therate ofGDPgrowth to of ontheextent reports The decouplingfactor d the region becomemore resource efficient. a steady upward trend, outside even ifcountries intensities for asawholewillexperience theworld Asian andPacific region, andenergy thematerial are now heavily influencedby trends for the decades. As aresult, sincetrends for theworld that have theregion characterized inrecent faster than the rapid rates of economic growth pressures ontheenvironment willincrease even thesetrends continueintheregion,If extractive Asia.in South-East andcountries asChinaandIndia such countries transition drivenby theeconomicsuccessof resource-intensiveyears andintroducing avery the decouplingachievements oftheprevious been ahugerebound inresource use, reversing the Asian financialcrisis. Since2000,there has enabled by aslowdown inresource useduring reduce overall resource use). This may have been GDP growth (butnotatafastenoughrate to andenergyin material useoutpacedtherate of relative decoupling, meaningthatimprovements 1995-2000, thereDuring were improvements in ecoupling trends 20 21 35 Resource Use Trends: Materials, Energy and Water 36 Resource Use Trends: Materials, Energy and Water and theworld, 1990–2005 Figure 2.12:Decoupling index for energy for theAsian andPaci c region, itssubregions decoupling). Negative values indicate re-coupling between resource between useandeconomicactivity.decoupling). Negative valuesindicate re-coupling 1 (whereand 0 between is 1 equalsmaximum the decouplingfactor occurswhen Decoupling as GDPgrows, indicatingalessresource intensive growth path,andsomoreto besustainable. likely positive indicates ofusethe resource decouplingfactor thattheintensity by aneconomy isdecreasing ofresourceWhen the changein the intensity use and the changes in economicgrowth are explored, a decoupling by usingasimpledecouplingfactor: (OECD)Organisation andDevelopment approach for to measure of Economic Co-operation theextent resource usestabilizes ordeclines while theeconomy andemployment grow. followsThis report the grows slower thanGDP, ofresource resulting inhigherefficiency use. Absolute decouplingoccurswhen Relative decouplingoccurswhentheuse ofmaterials, energy ortheemissionofgreenhouse gases forcedriving (for example, reductioninenergy-use over intensity time). time. issaidto Decoupling occurwhenthegrowth rate ofenvironmental pressure islessthanthatofits force (for variable example, gross domesticproduct[GDP], population)changesover agiven of period direction) anenvironmental pressure (for variable example, resource use, emissions) changes asadriving environmental pressures. analysisprovides(and inwhat Decoupling information abouthowquickly “Decoupling” over variables oftwo time;for example, economicbenefitsand thede-linking describes Boxd 2.3: South andSouth-WestAsia East andNorth-EastAsia North andCentralAsia Asia andthePaci c ecoupling South-East Asia The Paci c Decoupling factor (period 0-t)=1–resource (period factor Decoupling use(t)/resource use(0) World 02 01 01 00 00 .501 .502 0.25 0.20 0.15 0.10 0.05 -0.00 -0.05 -0.10 -0.15 -0.20 1990-95

Decoupling index output(t)/output(0) 1995-00 2000-05 continued page. onnext transport capacity andtheestablishment of capacity transport enhanceddevelopment, rapidurbanization, byhas beencharacterized massive infrastructure Asia), andSouth-East growth inSouth lesser extent affect regionaltrends. China(and to a efficiency In hasbeenenoughto ofthisshift The enormity oflessthan0.5kg/$. efficiency same period, haddecreased to 50percentatan over Japan, resource of 9.5kg/$. the efficiency to 20percentataits economiccontribution 2005,Chinahadincreased inChina.By 16 kg/$ compared was0.75kg/$ with inJapan efficiency only 4 percent.ResourceChina contributed in theAsian andPacificactivity region, while accountedJapan for 75percentofalleconomic 1970,centres ofproduction,suchasChina.In toJapan, relatively more resource-intensive from efficientcentres ofproduction,suchas away isshifting thateconomicactivity the fact belargelyenergy explainedby efficient—can in theregion are becomingmore and material worsening, whilemostsubregions countries and trends for are andenergy material efficiency overallThe paradox regional raised above—that consumption andgrowth progress, rising insufficient technological amid inproduction Shifts from economic growth, accessedfrom http://www.oecd.org/dataoecd/0/52/1933638.pdf on30June2010. Source Indicators: OrganisationandDevelopment, for to measure Economic decoupling Co-operation ofenvironmental pressure r elative andabsolute andresource decoupling ofeconomic activity use

Indexed values (year n = 100) 100 150 200 250 50 0 ernYa +0Ya +0Year n+30 Year n+20 Year n+10 Year n Declining resource use Growing resource use Growing economic activity decrease asaslowdown inpopulationgrowth ofpopulationgrowth toThe islikely importance consumption. domestic material and resource to trends increase worked efficiency three drivers—population,affluenceorincomes, reversed from thisperiod, 1995to all 2005.During 1975and1985,thissituationwasbetween some ofthegrowth consumption inmaterial to produce oneunitofGDP)helpedto offset (thatis, used reductionsinthematerial efficiency over time. While improvements inresource incomes hasgrownuse, ofrising but the impact driversofincreases inresourcebeen important growing populationsandincomeshave both (BoxAn analysisofthesefactors 2.4)shows that and technology). changeand income, suchasstructural as aproxy for otherthanpopulation allfactors (the resources usedto produce one unitofGDP, growth, incomes, rising andresource efficiency increasing consumptionarematerial population ofthe story. only part The driversof three key areproduction and consumption activity The changing regional to contributions in resource efficiency. improvements haveSuch factors overwhelmed seen amonghigher-incomehouseholds. urban are patterns also consumptionandmobility New infrastructure. energy productionandelectricity decoupling Absolute decoupling Relative

37 Resource Use Trends: Materials, Energy and Water 38 Resource Use Trends: Materials, Energy and Water potential for growth incomingdecades. andenergyof percapitamaterial usebuthuge an interesting low current levels case, withvery economies oftheregion willaccelerate. is India stabilizes, thegrowth indemandother fast growing countries, suchasChina,eventually growth in demand for raw inthese materials maychanging well picture. be that whenthe It investments ofthis ininfrastructure are part Asia. Largeespecially inEast and North-East accelerated the transformation of materials, haveproduction andconsumptionpatterns andfood production,andchangingtransport manufacturing,Expansion ofconstruction, than elsewhere. growth inpercapitaresource useintheregion than intherest oftheworld, resulting infaster much more pronounced inAsia andthePacific growth changeshave intensity andmaterial been rates intheregion place;however, takes economic accelerated consumptionofmaterials. food productionwere modernized changed, asboth production andconsumptionpatterns resulting in Asia and inparticular, East andNorth-East andtransport technologies manufacturing, In inconstruction, tochanges, increasedrivers (population changes)acting intensity income changesandmaterial DMC. thissituation reversed1985 (asindicated 1995-2005,withallthree by thenegativeduring valuesfor T), While improvements helpedto intensity inmaterial offset someofthe growth 1975- inDMCduring incomeshasincreasedrising over time. consumption,buttheinfluenceof driversofdomesticmaterial incomes have bothbeenimportant by 1995-2005.Growing 1975-1985 and11.6billiontons 4.3billiontons during during populationand of populationgrowth, percapitaGDP, thatchange.DMC grew indriving Overall intensity andmaterial The tablebelow showsDMC overchanges in three decadesfrom 1975to2005, andtherespective roles change andinfrastructuredevelopment. used bothinproductionandconsumption,butalsoinfluenced by otherfactors, suchasstructural andtheeconomicoutput(GDP), which isgoverned to alarge byused (DMC) thetechnologies extent becoming more orlessadvanced, itonlyindicates the changeinrelationship materials between is, intensity. materials ChangesinT ordirectlyindicate thatasociety’sdo notnecessarily technology is (GDP) percapita. T isdefinedsimplyastheresources usedperunitofGDPgenerated (DMC/GDP),that astheindicator. consumption(DMC) using domesticmaterial “A” to begross istaken domestic product thisanalysis, In “I”technological coefficient(T). pressure isdefinedastheextractive ontheenvironment, the environment (I)astheproduct ofpopulation(P),thelevel ofaffluencethepopulation(A), anda This equationinitsoriginal form proposed byandHoldren Ehrlich I =P*A T toframework achieve thisistheIPAT equation: future, driversindependently. itcanbehelpfulto identifyandanalyse key Onewidelyusedanalytical use inAsia andthePacific into the itmighttake hasdeveloped upto thepresent, andwhattrajectory resource endowment, economicstructure anddevelopment status. To understandbetter how resource The level ofresource useinaregion isdrivenby amultitudeoffactors, includinggeography, climate, Boxanalysing 2.4: change • contexts: emissions, mightdevelop underdifferent policy show how andenergy material use, alongwith Three different were scenarios established to use andeconomicoutlookfor 2010-2050. have to simulate beenlinked afuture resource model andatechnology-based physical model, economicmodels, adynamicnon-equilibrium and resource useinAsia andthePacific. noveldeveloped two modelsoftheeconomy Outlook for Asia andthePacific has (REEO)report Economics and The UNEPResource Efficiency: Outlook •

marginal improvement inresource efficiency; business asusualscenario, whichassumes use across allsectors; andenergy inmaterial efficiency large-scale thatimplements resource scenario efficiency a conceptualizes on thetotal impacts continued page. onnext 22 The two two The 23

•

c b a on12July2010. world-development-indicators Bank, 2010; World source andUNEPAsia-PacificData : CSIRO Flow Material Database, accessedfrom www.csiro.au/AsiaPacificMaterialFlows on11July DMC: domestic material consumption,GDP:DMC: domesticmaterial gross domesticproduct. dmC anddrivingforces inthea with theresulting lifestyle changes. energy, water andfood production,combined commercial andresidential buildings, mobility, infrastructurefortransition to industrial new systems thatassumesa innovation scenario P. andJ. R.Ehrlich P. Holdren, ofPopulation“Impact Growth”, (1971),vol. Science 171,No. 3977,pp. 1212–1217. The individualpercentage changesineachdriverwillgenerallynotsumto thetotal changeinDMC. This isdueto the Loss of population and income in North andCentral AsiaLoss are oftheformer drivenby ofpopulationandincomeinNorth therestructuring SovietUnionandtheloss West Asia andSouth- South Asia East andNorth-East 1975-1985 a The Pacific AsiaSouth-East West Asia andSouth- South Asia andCentral North Asia East andNorth-East 1995-2005 a The Pacific AsiaSouth-East Asia andCentral North Asia East andNorth-East 1985-1995 a The Pacific AsiaSouth-East West Asia andSouth- South Asia andCentral North followed theeconomicrestructuring. of somethesuccessorStates from theAsian and Pacific that region (for aswell as the de-industrialization example, Ukraine), change inIwould notbe60percent,but73cent. multiplicative nature oftheIPAT for equation.If exampleP, A,and T were allto increase by 20percentover aperiod, thetotal sia andthep sia andthep sia andthep Subregion (Washington, D.C.,World Indicators Development (Washington, 2009),accessedfrom http://data.worldbank.org/data-catalog/ acific acific acific i population ndividual contribution to changeindmC(%) p = -22.7 12.5 14.0 18.9 21.6 14.1 15.5 15.5 18.7 17.4 20.7 13.5 14.7 23.4 25.8 10.5 -0.2 7.6 sian andp Contributing drivers: a =gdp/ acific region, 1975-2005 p op. 4. . 5 -3197 -56 8.7 -47.3 30794 11626 49 7.9 23.0 5953 34 -4.5 22.9 4392 33 -10.4 25.1 36-. 9243 1050 2123 29 41 42 7793 -9.8 -3.0 62 -16.0 23.6 298 26.1 1212 42.4 1610 21.8 55 91 47 23.6 6030 15.2 -6.9 -6.6 92 14.5 53 69.9 345 29.2 980 26.5 11 528 35 40 33.9 2486 -14.5 10 -26.7 61 -1.3 13.0 49.2 -18.8 12.5 6.1 22.8 33.3 01-231 417 16 -22.3 50.1 80 billiontons and700exajoules ofmaterials emissions. 2050,theregion By would consume material andenergy dioxide useand carbon (CO business asusualwould leadto rapidgrowth in The REEOmodelling(see Table 2.4)found that t =dmC/ gdp b in dmC Change (%) c

Change (million in dmC tons) 2 ) 39 Resource Use Trends: Materials, Energy and Water 40 Resource Use Trends: Materials, Energy and Water and emissionsofCO andenergy,in thelongrun.Useofmaterials onresourcesthe impact andtheenvironment scenario, willnotsignificantlyefficiency reduce existing systems, asindicated by theresource useofalltechnological potential within Making and ecosystems. oftheEarth’schallenge thecapacity resources triple. These are amountsthatwould mostlikely t resource useefficiency, may eventually lead to innovation scenario, coupledwithhigh change assumedThe inthe systems structural strategies for high-incomehouseholds. and investment andwould includesufficiency andinfrastructureplanningchanges inurban These changeswould beenabledby huge and how water, energy and food are produced. which peopleare housed, how getaround they organized.would Suchachange affectthe way in change inhow consumptionandproductionare iscomplemented by alarge efficiency structural thesystems innovation scenario,In high resource aboutsustainability.sufficient to bring and thePacific, butusedinisolation,itwillnotbe inAsiaof rapiddevelopment andmodernization for reducing theglobalenvironmental impact prerequisiteresource isanecessary efficiency consumption rates. showsThis that scenario population, andgrowing percapitaincomesand pacewithagrowing gainswillnotkeep efficiency about double2010levels by 2050.Potential decadesbeforetwo resuming growth to reach CO Publishing, 2011). Source: (EJ) ofenergy/year, andCO(EJ) r able 2.4: CO Unemployment GDP Energy use Waste Material use Material 2 = carbon dioxide,= carbon GDP=gross domesticproduct. 2 emissions United NationsEnvironment Programme. Economics and thePacific for Asia and Outlook Resource (Canberra, CSIRO Efficiency: esource use, economy andemployment outcomes ofthree alternative scenarios 2 , would stabilize for about 2 emissions would 2030-2050 2030-2050 2010-2030 2010-2030 2030-2050 2030-2050 2010-2030 2030-2050 2010-2030 2030-2050 2010-2030 2010-2030 Business as economic progress thattranslates into tangible chain. The shouldbeinclusive objective socio- ofresourcesquality usedthroughout thevalue and to lookbothatthequantity be important and informulating appropriate responses.will It of their decisions on the demandfor resources theimpact governments inexploring support Such modelling, by soliddata,may backed well may benegligible inthat regard. and thedifference until2050 scenarios between employment outcomes) may beunderestimated, (aswelland sectors astheireconomicand tend to thestatusquo, activities thesenew modelssomehow activities.Because these new thatwould support activities sector as service renewable energy, aswell housing andmobility in economicactivities assumesnew efficiency usual scenario. Systems innovation andresource and employment stronger inthebusinessas business asusualandresource scenario efficiency where growth appearsto bestronger inthe employment outcomes underthethree scenarios, There are alsodifferences ineconomicand scarcity. environmental of global resource and change for andlower inthe face higherflexibility risks that requires andenergy lessmaterials andallows infrastructure needsto bedevelopedindustrial fundamentally different economicbasis. New the well-being ofpeopleandnationsona revolution industrial a second to establish aspirations. This suggeststhatitwillrequire in policies, economicbehaviour andsocietal sustainability, butrequires substantialchanges usual             efficiency resource             innovation Systems         the fastest-growing andmostresource-intensive (water andenergy) were to bedirected towards includinghousing, mobility,services, andutilities investment inmajorsystems ofprovision ofbasic now.in infrastructureandproductive capacity If years, becausetheregion isinvesting massively growth andresource 20 over thenext efficiency for greenThere isawindow ofopportunity has slowed. progress reduction,whichfurther inpoverty resource utilizationhasnotbeentranslated into resources. Further, theaccelerated speedin resulting inincreasing dependence onforeign strategic materials,for andcertain energy carriers resource constraintsare becomingmore evident of greenhouse gases. At thesametime, local generation, hasincreased, andsohave emissions coal asanenergy source, especiallyfor electricity hasaccelerated. materials of primary The useof As aconsequence, growth intheconsumption energy intensities oftheregion are ontherise. 2000. As highlighted by thischapter, and material changesintrends have occurredsince Important production andconsumptionactivities. all of theeconomics changes it, fundamentally to afullworld, Dalyhasputan empty asHerman from elsewhere are farmore limited. from Moving developing nationsto utilize cheapresources oftoday’s contrast,theopportunities countries. In the economicdevelopment ofmany OECD Resources acquired enabled from countries other natural capitalmay well be thelimitingfactor. development, to anerainwhichtheremaining ineconomiccapital wasthelimitingfactor has passedfrom anerainwhichhuman-made resource are risks growing. The globaleconomy For governments throughout theregion, Conclusions of resource burdens. driversofresource useandtheshifting primary investment issueswillalsobe required, as the and inclusive result, cooperationontradeand human capitalare required. For amore sustainable and more explicitattention to investment in growth, andemployment, productivity material relationship energy between use, economic To thisend, asoundunderstandingofthe orenergymaterial use. development withoutsubstantialincreases in to improvethere may be opportunities human benefits for people. As discussedinBox 2.5, 24

increase faster thanGDP. use ishighlynegative whenresource intensities GDP increases. The outlookfor future resource over time, resource intensities mustdeclineas resource use. For overall resource useto decline systems andrelatedmodern-industrial growth in of themassivefrom restructuring traditionalto environmental pressure because andimpacts haveintensity notbeenenoughto ease over time. However, reductionsinresource energy ofproductionandconsumption intensity been successfulinreducing and theirmaterial As thisanalysis hasshown, many have countries populations.urban forincrease equitableaccessto essentialservices overall would environmental also It impact. would improve resource and lower efficiency effect for halfcentury. Suchinvestment thenext andregions,countries thiswould have alasting beyond thegrowth of the1970s critique haveimpacts), allowed governments to go consumption (andrelated environmental decoupling economicgrowth from resource discourse ongreen growth, andthenotionof As discussedinChapter publicpolicy 3,thenew consumption andconstantly increasing incomes Beyond meetingbasicneeds, that theview human capitalare required. and more explicit attention to investment in growth andemployment, productivity material of therelationship energy between use, economic burdens regions. between Asound understanding done inaway thatavoids environmental shifting to ineffective andinefficientuse. This mustbe management of precious natural resources due development whileminimizing wasteful The objective, putsimply, issocio-economic environmental goals. objectives, including social, economic and differentof simultaneouslyconsidering theimportance notion ofdecouplingunderlines oftheworld. standard achieved inotherparts The aspirations andneedsare notyet satisfiedto a populations continueto expandandhuman the Pacific willcontinueto grow, especiallyas Resource useinmany inAsia countries and standardsmaterial ofliving. developing inparticular,world for improved recognizes legitimate the the of aspirations alsopresents amoreIt inclusive approach that avoiding questioningeconomicgrowth assuch. the overconsumption debate ofthe1990s 25

26 27 and by by

41 Resource Use Trends: Materials, Energy and Water 42 Resource Use Trends: Materials, Energy and Water doubling HDIlevel for thathave thosecountries notcrossed themedium-highHDIthreshold (0.5). recent percapitainenergy-poor couldsupport countries studysuggeststhatanadditional400kgoe increasesfromHDI) in of resourceadded unit each higher levels atA of HDI. those countries use than achievement gainrelativelylowest more levels incremental ofsocio-economic benefit(asmeasured by modest increases consumptionandenergy inpercapitamaterial use. atthe This suggeststhatcountries Second, bothfigures show thatatlow levels ofHDI,large increases inHDIcanbeachieved with relatively kgoe. consumptionoflessthan10tons,annual percapitadomesticmaterial andenergy useoflessthan1,000 figures have achieved HDIlevels beyond theidentified thresholddevelopment forhighhuman withan levels consumption andenergy ofpercapitamaterial shown use. inthe countries Noneoftheselected First, across theentireofhumandevelopment, higherlevels ofHDIare spectrum associated withhigher detailedinvestigation.overarching further conclusionsthatmay beworth results are presented figures inthetwo below. theabove Notwithstanding caveat, thedatasuggestsome infrastructure, governance, technologies markets, andinvestment inhumanandnaturalcapital. The human well-being onanationalscale, suchasresource endowments, economicdevelopment strategies, human development consumptionorenergy andpercapitamaterial useexists;many affect factors causalrelationship between to note thatitisnotassumedasimplebinary At theoutset,itisimportant percapita). (as measured ofoilequivalent[kgoe] by kilogrammes correlatesmeasureduse (as withmaterial by consumption)andenergyper capitadomesticmaterial use by examininghow humandevelopment—as (HDI) measured by Index theHumanDevelopment analysis, thisbrief thisisaddressed issue. andenergymaterial In inasimpleway consumptionisakey progressThe degree to andhumandevelopment require whichsocio-economic large quantitiesof of economicdevelopment andhumanwell-being, whileothershave not. resources more efficientlyandsome are better endowed with resources. Some havelevels reachedhigh benefits for people. across use challengevaries Some countries countries. ofthesustainability The severity The Asian andPacific region thateconomic facesthechallengeofensuring growth translates into tangible Box 2.5:resource useandhumandevelopment b a Korea andSingapore, thesegainsinHDIwere achieved withlarge increases in energy useper capita. explain therelatively of thecaseofRepublic highlevel consumptionin1995.In ofpercapitamaterial significantreduction cameafter infrastructureinvestments 1990s, inthe1980sandearly whichmay 2005 wasachieved whilereducing consumptionby domesticpercapitamaterial almost onethird, this consumption.AlthoughSingapore’sper capitamaterial progress 1995and between socio-economic Finally, ofKoreaandSingapore note Republic that Japan, have achieved higherlevels ofHDIwithreduced use from humandevelopment by meansofappropriate policies, incentives, andinvestments. examined here, consumptionand energy cansubstantially decouple material thissuggeststhat countries different ofthecorrelation thesimplicity levels consumption.Notwithstanding ofdomesticmaterial Fourth, bothfigures indicate thathighlevels ofhumandevelopment may beachieved atsubstantially well-being, asmeasured by theHDI. returns consumptionandenergy occurinmaterial useintheproductionofhumandevelopment and consumptionandenergycapita material use. This andthe above conclusion suggestthatdiminishing development, modestadditionalgainsinHDIare generally associated withsignificant increases inper Third, athighlevels ofHDI,especiallyatthoselevels beyond theidentifiedthreshold for highhuman The HDIprovides ameasure ofdevelopment by combining into asingleindexindicators oflife expectancy, educationalattainment D. Martinez and B. Ebenhack, B. and D. Ebenhack, Martinez “Understanding theroleenergy of development consumptioninhuman throughsaturation theuseof phenomenon”, each country standsinrelation to thesegoalposts, expressedeach country 0and1. asavaluebetween and income. The HDIsetsaminimumandmaximumfor eachcomponentoftheindex(called goalposts)andthenshows where Energy Policy (2008),vol. 36,pp. 1430–1435. b

a — AsiaPacificMaterialFlows on11July2010. andUNEPAsia-Pacific consumptionper capita:CSIRO Domestic Flow Material Database, accessedfrom www.csiro.au/ Source: HDI andenergy usepercapita,1995and2007 HDI anddomesticmaterial consumption percapita,1995and2005 on 7June2010. Energy and Agency World populationprospects: The 2008revision populationdatabase, accessedfrom http://esa.un.org/unpp from http://hdr.undp.org/en/reports/global/hdr2009/ on10 July2010.Energy usepercapita;basedondatafrom International Source:

Human Development Index United2009,accessed Programme NationsDevelopment Index: Human Development Report (UNDP),HumanDevelopment Human Development Index: United Programme NationsDevelopment 2009; Index: Human Development Report (UNDP),HumanDevelopment 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Bangladesh Philippines 0 Myanmar Human Development Index 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Viet Nam 2007 Low income 2007 Lower middle income 2007 Upper middle income 2007 High income 2007High income 1995High 2007Uppermiddleincome 1995Uppermiddleincome 2007Lower middleincome 1995Lower middleincome 2007 Low income 1995 Low income Bangladesh Sri Lanka Tajikistan Sri Lanka 0 India India Nepal India Pakistan Brunei Darussalam Georgia Pakistan Bangladesh Indonesia Tajikistan India Viet Nam China China Thailand Mongolia 1 000 China Energy usepercapita(kilogrammesofoilequivalent) 10 Domestic materialconsumptionpercapita(tons) Thailand Japan Papua NewGuinea Turkey China Rep. ofKorea Singapore Uzbekistan Malaysia 952005 1995 Malaysia 20 Iran (IslamicRep.) Kazakhstan Republic ofKoreaRepublic New Zealand 2 000 Turkmenistan Singapore Threshold forhighhumandevelopment 30 Kazakhstan Japan Singapore Russian Federation 3 000 New Zealand New Zealand Rep. ofKorea 40 human development Threshold for high Australia Australia 50 4 000 43 Resource Use Trends: Materials, Energy and Water 44 Resource Use Trends: Materials, Energy and Water reportedly widening.reportedly andthepoorest therichest gaps between are Similar differences existwithincountries, and used by theaverage globalorregional citizen. people live, useslessthanhalfoftheresources Asia, where alarge percentage of the region’s that anaverage andSouth-West personinSouth flows datapresented inthischapter, whichshow goalishighlighted by thematerialimportant to access resources equitable that notion an is human well-being isalsobeingquestioned. The have adominantrole to play indelivering and soundenvironmental andresource use. enhanced competitiveness, greater well-being programmes dividendof andmay yieldatriple plansandsystems may eventually guidepolicy base andinformation knowledge well-developed andto dealwithwastes andemissions.security A address thefuture challengesofresource supply and research institutes needto together work to statisticaloffices use. Governmentdepartments, baseanddataonnaturalresourcethe knowledge develop institutionalcapacities,need to further changing economics ofresource use. Countries but more needs to be done to prepare for the futureconditions andmostlikely ofresource use, national governments aboutthehistory, current a firststep ininforming regional initiatives and indicatorsResource are flow accountsandkey body of experience thathintsatthepotential forbody ofexperience Chapter 1. These initiatives provide animportant initiatives presented in country list of selected initiatives, shown as by the policy important leading economies, have recently established large and andsmalldeveloping countries intheregion, countries Several includingboth equitable growth. a greater focus more isneededonachieving andincreaseto resilience, reduce poverty continued economicgrowth remains necessary capital andimprove resource efficiency. While supply hasreduced incentives to invest inhuman human andnatural resources are in plentiful sustainable development. The notionthatboth have hampered theregion’s progress towards reflects growth andinvestment that patterns in someoftheregion’s mostdynamiceconomies Meanwhile, thephenomenon ofjoblessgrowth resources.increasing dependenceonimported with growing resource constraintsandan growth basedonhighresource intensity, along are magnified by rapidandsustainedeconomic the Asian and PacificIn region, thesechallenges in question. to secure is futureandprosperity stability ofgovernmentsby financialcrises,the ability of many economiesandsocietiesalready eroded andhungerhasslowed. poverty With theresilience vulnerable insociety, whileprogress onreducing challenges are already affecting thosemost andpoverty,with persistent these inequality environmental and uncertainty. risk Together constraints andcontinuingeconomic defined by increasingly resource evident landscape achangingChapter 1describes policy introduction introduction CHAPTER 3: GREEninG GREEn EConomy GRow

resource constraints. economic systems to environmental changeand needs andreducingofsocio- thevulnerability financial resources better to meetdevelopment for providesobjectives using opportunities closer alignment withsustainabledevelopment are driversofgrowth. Aneconomy whichisin as sustainablemanagementofnaturalcapital which investments inresource savings aswell protection,green buildinga economy in synergises economicgrowth andenvironmental overhauling theeconomy inaway that isfocused onsustainable development. It in AsiaPacific, andthe isastrategyfor achieving Conference onEnvironment andDevelopment Green growth, asagreed Ministerial atthefifth to secure asustainablefuture. fundamental economic transformations needed stimulating resource-intensiveconsumption thiseconomic new most reality, countries. In for peopleandeconomies isstillnascentin to theimplicationsofresource constraints financial crisis. However, response ameaningful to thattriggered mitigate the someoftherisks the Pacific andelsewhere since 2008have helped in Asia the 1997financialcrisis and after Stepstaken agendas ofmajoreconomiestheregion. economic outlookanddominate thepolicy continueto dim thesocio- prices and commodity resources food, isnolongerpossible. High energy through anendlessandcheapsupplyofnatural isincreasingly thatfuellinggrowth evident It A more realistic response overhauling theeconomy TH : T ow ARDS A

45 Greening Growth: Towards a Green Economy 46 Greening Growth: Towards a Green Economy (or less thanonetenth ofthetotal global grossglobal domesticproduct(GDP)annually estimates thataninvestment of2percent United NationsEnvironment Programme (UNEP) of thesearch for ofgrowth. abetter quality The The promise ofagreen aspect economy isakey needs andunderdeveloped financialsectors. unemployment, massive unmetinvestment growth, suchassignificant and rates ofilliteracy significant challenges to continuedeconomic financial development. However, there are in trade, humancapital, infrastructureand present growth requiring trajectories, advances motivated to sustain,oreven accelerate, their Meanwhile, intheregion countries are also economies andsocieties. ondeveloping country high negative impacts response,long-term withdisproportionately may proveeconomic recovery anunsuccessful asthemainstrategyand productionpatterns for eradication, makers (Nairobi, asynthesisfor policy 2011). Source: United NationsEnvironment Programme,Towards pathways agreen economy: to sustainabledevelopment andpoverty buildingandtrainingstrengthening governance.capacity international consumerpreferenceinstruments to shift andpromote green investment and innovation, investing in sectors, limiting spending in areas thatdeplete natural capital, employing taxes andmarket-based government investmentprioritizing andspendinginareas thatstimulate thegreening ofeconomic frameworks,UNEP’s enablingconditionsincludeestablishing soundregulatory concludesthatkey report • • • • include concludes thatreturns oninvestments 2011and2050,compared between to businessasusual, could change, water scarcityandthelossofecosystem services. While there willbebothwinnersandlosers, it growth over 2011to 2050whileavoiding considerabledownside risks, suchastheeffects ofclimate The UNEPTowards aGreen stresses Economy thatagreen report investment delivers scenario long-term infrastructure andnaturalcapital-basedsectors, suchasagriculture, fisheries,andwater forestry supply. renewable energy sources. The remainder isdevoted to improved waste management,publictransport economy scenario, halfoftheinvestment isallocated andthedevelopment of toenergy efficiency basis over thecomingdecadesinto business-as-usualandgreen economy scenarios. Underagreen ofinvesting impacts 2percentof global grossmacro-economic domesticproduct(GDP) onanannual Economic modellingdonefor theUnited NationsEnvironment Programme (UNEP)investigates the Box 3.1: The potential for agreen economy respectively, methods. basedontheadoptionofsustainable farming whilereducing deforestation sink, possible carbon andfreshwater useby 55percentand35cent, transformation ofagriculture from amajorgreenhouse gas (GHG) emitter ora to GHGneutrality andthemunicipalsector; inagriculture,in increased water efficiency industry reduced demandfor water from by aboutonefifth, annualinvestments of$100billionto $300billion 2011and2050inpayingbetween forest forests landholdersto conserve investment; andinprivate increased formal investing employment andincreased storage—from carbon 0.03percentofGDP increased ofmore valueaddedintheforest than20percentcompared to businessasusual, industry savings oncapitalandfuelcostsinpower generationofabout$760billion/year; markets andrapidlygrowing centres.markets urban There as water, energy andhousing, inthefledgling by such theunmetneedsfor basicservices, There presented are tremendous opportunities growth place. pathareto take unlikely on thescaleneededto puteconomiesonagreen the economy. Without suchchanges, investments natural andhumancapitalare valuedandusedin infrastructure) thatinfluencetheway thatboth and infrastructure(policy, institutionsandbuilt significant change intheeconomicincentives the prescribed investments willrequire a ofAsia developing countries andthePacific,In conditions may already bewithinreach (Box 3.1). capitalandtherequisite enabling of re-directed many developed economies, suchan injection scarcity andclimate changewithindecades. In relatedeconomic outlookandrisks to resource could beenoughto significantly changethe investment/year) into buildingagreen economy development challenges. sustainable and policiesthatfittheirparticular theapproaches,must determine priorities how growth isfeasible indeveloping countries, but questionisnotwhetherorgreen akey extent, onthemwithnoregrets.can embark To this development strategies. countries Developing sound environmental policies, butalsosound water resources management,are notonly orimprovingsuch asinvesting inpublictransport Many strategies consistent withgreen growth, andcapacities.evolving expectations economicrealityandbettera new ableto meet economic strategies thatare better matched to approach to economicgrowth—by deploying ofa the mistakes “grow now, cleanuplater” is significant potential for leapfrogging—avoiding to closethetimegap, themomentumtowards or innovative thathelp financingarrangements goal isto ensure thatonce initiated by stimulus crisis, cannotdosoona continuous basis. they The financing, ofthefinancial asdoneinthewake gaps. stimulusWhile governments caninject theleadinclosingboth Governments musttake in naturalcapital. the incentives for resource savings orinvestment whichreducesof ecosystem goodsandservices, andtheeconomicvalue prices market between environmental pressures; and(b)the “price gap” benefitsofinvestmentslong-term thatreduce (a) the gap”“time costsand short-term between particular,In there isaneedto gaps: closetwo fundamentaleconomictransformations.making growth placeautomatically without willnottake ofcommodities,of energygreen andseveral kinds Even thoughthere isupward pressure ontheprices development outcomes. flows thatpromote inclusive andsustainable Economic growth mustbedrivenby investment aligned to sustainable development objectives. and socialpreferences, mustbemore closely policies, institutions, technologies, infrastructure benefited. Pricesignals, whichare reflective of by thosewhohave borne disproportionately least of economicgrowth are and externalized while theenvironmental andsocialcosts Sustainable development willremain elusive – systemic reform for cycle green growthA virtuous canagreen economy bebuilt.Countries become more profitable. so thatinvestments inrenewable energy have forces hashelped “recalibrate” prices market The increase offossil through fuelprices market energycarbon technologies isinitsinitialstages. As discussedinChapter 5,atransitionto low- green economy is arguably ingreatest evidence. the energy sector, where thepotential of the incentives isincreasingly framework in evident An example of the power oftheeconomic incentives for degrading naturalcapitalare large. areneeds infrastructure still great andinwhich inwhichespecially indeveloping countries basis for ofgrowth, abetter achieving quality built andnaturalcapital—are alsorequired asa infrastructure” both oftheeconomy—comprising development andmanagementofthe “physical messageisthatsustainableThe second key as economiesgrow. environmental protection willbeoverwhelmed growth lost—and any gainsin willbequickly themomentumachievedterm, towards green and sociallyinclusive investments over thelong directed towards environmentally sustainable economic forces andfinancingmechanismsare consumption inothers. Unlesstheunderlying green andgreening sectors productionand itself, continuallyexpandinginvestments innew processes, thegreen growth engine willfuel anddecision-making better reflected in markets are ofecologicalvalues services and goods green growth engine running.economic If the to keeping their economicvaluesiscritical ofnaturalandhumancapitalto trulyreflectprices successful green growth initiatives. “Recalibrating” infrastructure” of oftheeconomy liesattheheart or”invisibleeconomic incentives framework, There messages. are First, key two asupportive green investments. driverfor acceleratingbecome animportant for buildingagreensupport economy willalso benefits are revealed, sector societalandprivate areconsumption patterns required. As multiple attitudes towards sustainablelifestyles and by andinvolvesupported civilsociety. Positive The transitionto green growth mustbe green economy ratherthana “brown” one. gap toprice of a boost the economic viability a green economy ismaintainedby reducing the fossil fuel.Simultaneously, fiscal stimuluspackages of fossil fuelandthetrue economiccostofusing reduce the “price gap” price themarket between long way have to go, alsohelped markets carbon 1 thereWhile a isstill 47 Greening Growth: Towards a Green Economy 48 Greening Growth: Towards a Green Economy to ensure thatgrowth isnotonlygreen butalso approaches, includinginstitutionalinnovations programmes, policies, financing andgovernance will alsodepend ontheelaboration ofspecific and improve oflife thequality ofallpeople The potential of green growth to reduce poverty requirement.capital isakey base mustbepresent; investment inhuman economy, andknowledge appropriate the skills and to capitalize on the potential ofthegreen by governments. responses andcareful management”“transition winners andlosers. This requires specific policy there term willbeboth intheshort long term, growth in themediumto willbemostevident shows thatthebenefitsforreport economic modelling for theUNEPTowards aGreen Economy Green growth isnot, however, a panacea. While the basic services. as free resources to provide better access to resources theeconomy, thatunderpin aswell andsustainably managethenaturaland crises shocks systems to external socio-economic reduction, asitcanreduceof thevulnerability produce better outcomes ofpoverty interms economy andmay perspective hasalong-term sustainable development, buildingagreen While green growth strategy for isakey achieving below.an integrated framework policy growth, onbuilding asdiscussedinthesection oftheenablingenvironmentaspect for green together isnow acriticalside interventions strategies demand-sideandsupply- that bring specificintegrative toolsDefining and policy fossil fuelsonan “installed cost” basis. renewable energy isstillmore expensive than decades, two energy and demandinthenext sufficient renewable resources to meetprojected present, onlyafew intheregion countries have changedto increase momentum.Atbe further provides signals must anexampleofhow market At thesametime, renewable energysupport. also andinstitutional policy through complementary prices into market ofexternalities internalization intheabsenceofacomplete ofacting possibility The caseofrenewable energy highlightsthe technological innovation andcreated jobs. new for cleanenergymarkets technologies, spurred togetherrisks. Allofthesefactors have enlarged also provided financingandreduced investment tariffs), have andgreater institutionalsupport incentives (suchasfeed-inand otherpolicy 2 To enablewidespread benefits

“new policies” scenario, Energy (IEA)projectionsthat,even ina Agency inclusive. byThis International isunderlined address alltheroot causesofpersistent poverty. social policiesandgoodgovernance, ordirectly economic growth cannotsubstitute for sound following sections. for transformation, long-term asdiscussedinthe ofany strategy aspect isacritical interventions synergizes demand-sideandsupply-sidepolicy thatdefining anintegrated framework policy particular,a fairandinclusive transition.In growth; humancapitalformationensuring and governance for green framework; policy progress;tracking buildinganintegrated environment: establishingavisionand of anenabling aspects to establishing key transformations willrequire commitment A longer-term towards view fundamental the country. well astheenvironmental pressures facedby andgaps,fit specificdevelopmentas priorities each country, strategies shouldbeadapted to periods. Forbe establishedinrelatively short benefitsandthefoundationsand long-term can natural capital. These strategies have bothshort development andc)facilitatinginvestments in above); b)promoting sustainable infrastructure to close “price” and “time” gaps(asdescribed a) reforming theeconomicincentives framework include identifiedinthissection actions Priority Priority actions capital)—is discussed. is, thehuman-made infrastructureandnatural ”physical infrastructure” oftheeconomy (that theseconddeterminant—the section, the next In byas determined theincentives framework. structureof the economy, istheprice section, patterns.resource-use The first,discussedinthis of investment determinants key flowstwo and and Pacific region requires a focus onreforming required intheAsian integrated framework policy Building theengine for green growth andthe Reforming economic incentives than decrease by thattime. willincreaseusing biomassfor rather cooking willremain highin2030,andthoseelectricity of peoplewithout numbers long term—the the willpersistin energyaccess to modern services 3 theproblem oflack 4 Policies for greening

economic agents. ofall thatgovernand policies theactions by andimpacted institutionsby markets changing signals. price Price signals are provided resource useandenvironmental pressure by the sametime, provide incentives for reducing that boosteconomicgrowth andthose that,at that atthemostbasiclevel, integrates policies Greening ofgrowth requires framework apolicy use and pollution discharges). Markets canbeuse andpollutiondischarges). Markets enhancing taxes (suchastaxes onresource taxes (suchastaxes onlabour)to welfare thetaxburdenof shifting from welfare reducing Taxing bads, notgoods. ofenergy. can encourageinefficientandpollutingforms into accountpollutionandhealthcosts not take costs. For instance, low energy thatdo prices better reflectedquantities thanifprices theirtrue prices, resourcesin market are usedingreater ecological costs ofresource useare notreflected As stated previously, whenthesocialand designcareful andrevenue policy recycling. well asto minimize regressive through impacts and environmental issuesatthesametime, as offers thepotential to address botheconomic unsustainable economic growth patterns. It thatare thebasisfordevelopment trade-offs the fundamentaleconomic-environment-social integrative tool thatcanreduce someof policy cross-cutting,and budgetreform isakey efforts ofgreen inthecontext taxreform undertaken subsidies reform, andbudgetreform. Eco-tax reform, andtax, oreco-tax, pricing-structure environmental pressure. This includesecological both improved humanwelfare andreduced growth isgreen taxandbudgetreform to secure ofanincentives for framework greenAt theheart achieve theintegration oftheseobjectives. the economicburdens ofwasteful energy instrumentthatcanhelp andresource policy use, isakey simultaneously increases reform, the cost ofemploymentEco-tax and job creation and which reduces regardingrequires theuseof bothnaturalandhumancapital. acloselookatthe nature of incentives growth between andenvironmentalenvironmental thetrade-offs Reducing protection sustainability). standards) while simultaneouslyreducing energy andresource inputs(andsoenhancingprospectsfor living productivity (and The challengeposedby green growth isto achieve continualgainsin labour tensions thathave hindered sustainabledevelopment. andboosted economicgrowth. However,labour productivity these measureshave given to policy rise technologies have andtheimplementationofbetter managementpractices undeniablyimproved energy andotherresources, theuse of more cost-effective mostcountries, increasedIn inputsof tensions:Box enhancinginvestments policy 3.2:Reducing inhumancapital 5

Eco-tax reformEco-tax consists

to rise toto 103,000by rise 2010. alone, withthisnumberprojected wind industry jobshadbeencreated45,400 permanent inthe accelerated growth. experienced sector 2003, By declined by 5percentandtherenewable energy labour to energy. 2001,the use offuelhad By in1999systematically taxes shifted fromstarted Germany,In afour reform year eco-tax planthat reform ofeco-tax haveimpacts beenrecorded. example through lower taxburdens). Significant boosting growth by reducing labourcosts(for whileenvironmentally beneficialactivity dividend investments by shifting towards reformEco-tax may give governments adouble commodities.structures ofkey ofchangesinpricethe politicalacceptability efficient useofresources.helps toalso increase It consumption thataremore cleanerandmake by providing incentives for productionand on employment andpollutingbehaviour burden. have can it Instead, apositive impact over time, would notincrease theoverall tax neutral ifappropriately designed andadjusted This approach, whichcanbemaderevenue consumption patterns. and sociallyviableproduction burdens onthe “goods”—environmentally use ofresources—and reducing taxorfinancial such aspollutiondischarges ortheinefficient reformed by applyinggreen taxes to the “bads”— budget redistribution. Awiderangeofproduct a broader budgetreform andaflexiblesystem of Tax systems are mosteffectively modifiedwithin strategies andresource constraints(Box 3.2). tensions createdpolicy by economicgrowth thatare theresult ofdevelopment trade-offs fundamental economic-environment-social has the potential to help reduce someofthe 6 Eco-tax reform Eco-tax also

49 Greening Growth: Towards a Green Economy 50 Greening Growth: Towards a Green Economy While subsidiesare politicallyattractive, they burdens for bothbusinessesandpeople. incentives for production,reducing economic economicinstrumentsthatprovideimportant Subsidizing goods, notbads. gradually andpredictably. carefully are designed andtaxshifts phasedin or reforms to achieve environmental goalsare objectives, especiallywhenthepoliciesequity environmental between aconflict and necessarily and similarstudieshave shown thatthere isnot minimize adverseimpacts. distributional This and expenditure iscrucialinorder patterns to andruralhousehold income urban between suggested thatrecognizing thedifference nationwide. For energy reforms, price theresults with overall progressive effects distributional neutral orslightlyprogressive areas, inurban be strongly progressive inruralareas, andeither be regressive.not necessarily wasshown to It taxwouldcountries, theintroductionofacarbon that, incontrastto moststudiesfrom developed carbon taxandenergy reformscarbon pricing model to assesstheeffectsequilibrium ofa basedonamultisector,in Indonesia general the poormay beoverstated. For example, astudy However, the potential on ofnegative impacts carefully designed to mitigate regressive impacts. mustbeAlso, reform aneco-tax package beneficial ways. on energy subsidiesthatcanbespentinsocially- accrue, for examplefrom reduced expenditure time,Over savings to government canalso inresponse. theirconsumptionpatterns shift close thetimegapsothatthoseaffected can this way, gapcanhelpto also closingtheprice measures). In energy household or efficiency for renewable energy technology deployment withincentives prices coupling higherelectricity resource andcostsavingsfurther (for example, in away thatencouragestheirinvestment in affectedcompanies andconsumersmostdirectly environmental taxes orsubsidyreform to appropriate) revenue new orsavings from with fiscalreform measures to (as recycle shouldbecoupled reform An eco-tax package but encouragesenergy efficiency. fuel tax,whichmaintainsgovernment income standard road taxwasreplaced in2009witha production behaviour. For example, inChina,a or taxes canbeappliedto alter consumptionand natural resource fees andpollutiondischarge fees fees, productsurcharges, environmental userfees, Subsidies are 7 suggested

from 15percent. cent ofthepoorest householdsonlybenefited from 70percentofthefuelsubsidies, while40per 40 percentofhigh-incomehouseholdsbenefited affluent. For anestimated example, inIndonesia income groups; benefitthemore sometimesthey improvements anddonotalways benefitlower- andefficiency can discourageconservation carbon dioxidecarbon emissionsby about6.9percent. would2020 2011and between out reduce billion in2008andthattheirsuggested phasing increased from $342billionin2007to $557 The IEA estimates thatfossil fuelsubsidies fuel subsidies. in September 2009to gradually phaseoutfossil by 2008. and 2006,butreintroduced orincreased again in many oftheregion countries 2004 between shows thatsubsidieswere reduced orremoved trendsA review offuelprice across theregion accounted foraccounts andrarelyin national provided by nature, are not they typically economic valueofthegoods andservices However, fail to often capture the as markets to economic development.also contributing natural capitalhelpssecure thesevalues, while and globallevels (Box 3.4). The maintenance of have economicvaluesatlocal, enormous national produced by ecosystems can andservices Goods ofreformingaspect theincentives framework. intheeconomy isakey of ecosystem services ecosystem services. i andgreensustainability employment. and use),thusboostingthetransitiontowards inallstages(production,transmission efficiency energy andtechnologies thatpromote energy fossil fuelusecanberedirected to renewable resource use. For subsidiesfor instance, perverse use ofgreener technologies andmore efficient However, targeted subsidiescanencouragethe development andenergy security, environmentalachieving protection, economic for means cost-effective bea can dividend double with measures to enhancethepotential for contrast,subsidyreformIn thatiscomplemented widely acknowledged, with the G-20 with widely acknowledged, (Box 3.3). The needfor subsidyreform isbecoming oftheresultingthe impacts higherenergy prices transfers to low-income householdsto mitigate subsidy reductionswere coupledwithcash meeting social needs better. nternalizing theeconomic values of 12 8 Recognizing thevalue In Indonesia, energy Indonesia, In 9 aswell as 10

agreeing 11

economic activity. and producers, andinthemeasure ofacountry’s better reflectedof consumersdecisions the in are economic valuesofthesegood andservices canhelpensure thatthegoods andservices ecosystems. Appropriate of ecosystem pricing invariably leadsto thedegradation ofthese decisions. The absenceofappropriate incentives production,consumptionandland-useimpact International Institute for 2010). Institute October SustainableDevelopment, International Source Beaton: Christopher Lontoh, andLucky Lessons learnedfrom Indonesia’s attempts to reform fossil-fuel subsidies (Winnipeg, increases.opposition to thefuelprice rate to 22percent. programmepoverty alsohelpedreduceThe politicalandsocial welfare-support March 2007.Onestudyprojectsthat,withouttheBLT, increases thefuelprice couldhave increased the linedecreased fromnumber ofpeoplebelow 16.66percentin2005to thepoverty 16.58percentin households’ livingcostsandmay even growth have offset rates, poverty atleastinruralareas. The adjustment saved $10billionin2006. The BLT programme helpedcompensate for inpoor therise The reductioninfossil fuelsubsidieswasestimated to have saved $4.5billionin2005andafurther increases. and theprogramme measures forofprice wasaccompaniedby othershort-term theimpacts alleviating includingincome.payment was basedonspecificcriteria, Aninformation campaign wasundertaken 19.2 millionlow-income householdswere given $10/monthover ofsixmonths. aperiod Eligibilityfor being ableto easilytarget Approximately aspecificgroup withcertainty. anditscostisusuallyknown transfer programme calledBantuan,Langsung Tunaicash transferdirect (BLT).A has theadvantageof reform onthepoor. ofthesesavings onanunconditionalcash The government spentaboutaquarter However, thesavings from increases diverted thefuelprice to ofthe mitigate Indonesia theimpact The removal ofsubsidiesisapoliticallysensitive issueandhas, inthepast,ledto protests andviolence. 28 percent. 2008, subsidiesofpremium fuel, andkerosenewere increased by some25percentanddieselby some wereprices increased by anaverage 2005and, of29percentinMarch 2005,114percentinOctober 2001 and2008,fuelsubsidiesrangedfrom response, 10to 28percentofthe nationalbudget.In fuel simultaneously reduce itsexpenditure onenergy andincrease itsinvestments inhumancapital. Between subsidies andrestructure energy inaway thathasallowed prices to thegovernment ofIndonesia andfuelsubsidypolicies have implicationsofhighoilprices to ledto reduce actions The budgetary Box 3.3:Subsidyreform ini reduction andpoverty domestic wastewater, $654/hectare/year contributes to theeconomy. of$1,907/hectare/year,an economiccontribution and, throughoftreating and itsfunction industrial which,throughofattenuating floods, itsfunction provides Lanka Sri is acoastalwetland innorthern hectare/year), (upto andtourism $1million/hectare/year). The valuesare Anotherexample site-specific. (uptoyear), (upto $57,000/ $3,818/hectare/year), fisheries andbio-prospecting geneticmaterial naturalhazardat uptomanagement (valued $189,000/hectare/ services: of economicallyimportant highlightsthevalues ofecosystems.recent report Ananalysisshows thatcoralreefs provide arange prices. Estimates basedsolelyoneconomicnetbenefitstend toestablished market betoo low. A as protecting coastlines, creating sediments for beachesandexchanging gases, donothave easily Calculating thefulleconomicvalueofhealthy such ecosystems ishighlycomplex, asmany services, Box 3.4:Economic value ofecosystem goodsandservices conclusions, and recommendations of TEEB(Nairobi, TEEB, 2010). MainstreamingSource: theeconomics ofnature: asynthesis oftheapproach, The Economics ofEcosystems (TEEB), andBiodiversity example, forinthecase of absorption carbon for hydropower production) orforests (for provided by watersheds (forservices example, energy andwater use thatdependonthe and payments foror charges for eco-tourism environmental taxes oruserfees, suchasfees including: (a)values ofecosystem services, facilitate ofeconomic theinternalization Various instrumentsare available to policy ndonesia 51 Greening Growth: Towards a Green Economy 52 Greening Growth: Towards a Green Economy have a better likelihood of success if part ofhave abetterofsuccess if part likelihood regulations. incentive schemes Market-based andeffectivelywell-designed implemented by orcomplemented withwhen supported many incentives best work cases,In market Regulation, compliance andenforcement. governance arrangements. have muchhighervalues, butmore complex presented payments orbiodiversity by thecarbon benefits. have more immediate, targeted andsustainable can valuesinlocalmarkets ecosystem service national significance. many cases, In revealing valuescanhave bothlocaland Ecosystem service environmental service provision.environmental service management system thatenhancesormaintains embedded inaproductthatisproduced undera isthe payment for enhancedecosystem service inwhich eco-labelling and(f) ecosystem services; directly compensated for sustainingorenhancing and landmanagersinwhichare beneficiaries ecosystemdeals between service offsettingbiodiversity (e) anddirect private and forest market such asthevoluntary carbon environment by purchasing credits oroffsets, forimpose onthe they the negative impact inwhichthepolluter pays markets and-credit (d) baseline- or theregulated markets; carbon wetland mitigationbanks in the United States isdefined, asinthe caseofecosystem service minimum ofaspecificmaximum or mandatory caporfloorinwhicha trading underregulatory (c) openhelp encourageresource conservation; powerthermal plants);(b)targeted subsidiesthat Source: Asian Environmental Compliance accessedfrom andEnforcement www.aecen.org/ Network, on1July2010. environmental compliancewithnationallegalrequirements commitment. andinternational Agency. issuedajointstatementThe callingfor countries Asian governments to promote improved United NationsEnvironment Programme andAECEN,hosted by theSingapore NationalEnvironmental to strengthen enforcement andcomplianceofenvironmental laws atameetingorganized by the 2009,environmental leadersfrom October 14Asian agency nationsandtheUnitedIn States committed through similarenvironmental are challenges andgoodpractices bestshared amongpeers. relies cooperation, inthebeliefthatmostenvironmental heavily onSouth-South agencieshave been regulations through theexchange ofinnovative policiesandpractices.AECEN’s operationalmodality AECEN’sBank. mission isto promote improved compliancewithenvironmental policies, laws and assistance from theUnitedandAsian Development for States Development Agency International (AECEN) wascreated by several oftheregion’s nationalandsubnationalenvironmental agencieswith not beingeffectively implemented, theAsian Environmental Compliance andEnforcement Network Recognizing thatAsia hasmany environmental laws, regulations, plansandprogrammes action thatare Box 3.5: 14 Capturing international opportunities opportunities international Capturing The Asian Environmental Compliance andEnforcement n 13 to close the price gaps between market prices market gapsbetween to closetheprice investments ingreenergrowth. However, action would setthestagefor economicallyviable scale. theeconomy Recalibrating the necessary has beenreluctantto invest ingreen at sectors by the private sector,and participation which financing, itwillbeessentialto increase investment ofcommittedcontinued availability public the about uncertainty and crisis economic Financing green growth. Given the2011 to achieve green growthnecessary (Box 3.5). deliver will behavioural the changesframework compliance enforcementsystem, incentives no penalties.and Withouta strong credible and in theimplementationofcompliancefines and mustbefree from politicalinterference their complianceenforcement functions to conduct andresourcesthe capacity necessary Government agenciesmustbeequippedwith financial resources and, insomecases, corruption. institutional capacity, inadequate humanand due to weak politicalwill, low technical and and enforcement continueto posechallenges enforcement capacities. Effective compliance requires effective administrative, and monitoring being used, theirsuccessfulimplementation Regardless ofthenature oftheinstruments work betterwork thaneitherapproach onitsown. for sustainablemanagementandprotection can upby onloggingmoratorium incentives backed inforestExperiences managementshow thata resources, suchasingreen buildingcodes. establishing clearstandards foruse of the that integrates regulations package a policy etwork 15

are alsoagile enoughto develop products that products. Manyinto companies usefulmarket innovative ways existingtechnologies to turn technologies,new many have upwith come donotinvent indeveloping countries start-ups ofcleantechnology,the majority orclean-tech, considerable potential for localinnovation. While to originate inthedeveloped world. There is technologies and their applications continue transformation as, atpresent, mostcutting-edge ofthegreenand competitive advantagesaspart increasingly lookfor economicopportunities new At the same time, mustalso developing countries definedrolesclearly for allparties. arrangements, with and for partnership various forinstitutional frameworks increased finance providing incentives and through clearregulatory growth. role in Governmentsplay animportant greencapital flows into thatsupport thesectors thatrestrict andrisks these andotherbarriers shouldfocus sector the private onovercoming governmentsCollaborative between and action financial institutions. to meet the “asset-based” of lendingpractices banks notwillingto finance),andprojectsfailing costs,scale ofprojects(significant transaction big development project costs, high include small to financinggreen barriers projectsOther are available incommercial typically markets. undesirable, requiring loans than longer-maturity such investments themfinancially makes often discount rates of to assessthefinancialviability significantand after upfront costs. The useofhigh benefits, many do soonlyafter often they years andgreenhand investments deliver can large gohand-in- While affordabilityefficiency and close thetimegap. benefits needsto becomplementedto by action thatreflectbothecologicaland prices costsand technology-venture-investment-deals-in-2010-as-total-amount-invested-rises-28-percent-to-7-8-billion/ on4February 2011. to $7.8billion(SanFrancisco, 2011),accessedfrom http://www.cleantech.com/2011/06/05/record-number-of-clean- January Source: Cleantech Group, Record number ofcleantechnology venture investment dealsin2010,astotal amountinvested rises28percent capital investment, whichgrew from just$2billionin2005to $7.8billionin2010. Thus, ofglobal cleantechnology there venture upaneven ishopethat Asialarger willtake portion Bank withfundmanagersinAsia have growth substantialventure confirmed capitalmarket opportunities. investment inAsia occurs, isaround 10percent.However, recent discussionsby theAsian Development for cleantechnology. The globalshare ofsuchinvestment Asia, inChinaandSouth where mostsuch The Asian andPacific and Europe America region inaccessingventure isstillfarbehindNorth capital Box 3.6: Venture capitalfor cleantechnology

commercial partners have managing, difficulty commercial partners fundscanalsocoversector that specificrisks for Publicillegal practices winningcontracts). prevent irregular theuseofnon-competitive, or for healthy biddingandaward (to ofcontracts provisions. are Sucharrangements essential by strong regulatory, protection andprosecution audit, dispute resolution andadjudication,backed forinstitutional arrangements procurement, To thisend, strong governments mustenact shoulder theinitialproject development costs. are needed, withpublicfundingusedto help (PPPs) partnerships application—public-private when technologies arescaled upfor local At the critical, technology deployment phase— change andcleanenergy investments (Box 3.6). the movement ofventure capitaltowards climate research anddevelopment andalsoto stimulate At this stage, publicfundingisrequired for early high andfront-loaded capitalcostsofprojects. targeted financeto help themovercome the requireAsian-based clean-tech start-ups at whichtechnologies are initiallydeveloped– instance, atthe “innovation stage”–the stage stages ofthecapitalinvestment For cycle. to target different interventions pursue various Following can theexampleofChina,countries rail technologies. solar photovoltaic hardware, andhigh-speed clean-tech sectors, includingwindturbines, per centofitsGDP, terms, more earning than44billioneuros, or 1.4 the largest producer ofclean-tech inmonetary 2008,Chinawaseasily In develop themarket. and is aggressivelysector moving to forward China, inparticular, clean-tech views asagrowth know-how. ofexistingtechnologiesby and applyingavariety can meetthecustomized needsoflocalmarkets 16 leading the world inmany leadingtheworld

53 Greening Growth: Towards a Green Economy 54 Greening Growth: Towards a Green Economy social inclusiveness. andsustainability, accessibility, eco-efficiency infrastructure according of to principles to design, financeandmanageopportunities infrastructure,new whichcreates tremendous development ofstock andbondmarkets. pensionsystems to contribute functioning the manage thegrowing poolofpensionassets, well- the growth oflarge institutionalinvestors to effectively mobilizing savings andcatalyzing sound andefficientfinancialsystems. By investment indeveloping Asia by promoting Pension reform canalsostimulate private in Asia. for sustainableinfrastructuredevelopment alone scaled-up by orders atleasttwo ofmagnitude this levelof investment toneed bewill likely between 2010and2020 between infrastructure investment inAsia andthePacific thirdsAbout two neededfor ofthe$8.0trillion centres inthePacific are growing atrecord rates. growth intheforeseeable future whileurban predicted to bethecentres ofglobaleconomic As Chapter in Asia’s 1, discussed are cities while meetingtheneedsofpeople. savingson maximizinglong-term inresources, energynetworks, andwater supplies, mustfocus environments, includinghousing, transportation activity. To accomplishthis, investments inbuilt resources required economic over timeto support to reduceof will dependonitsability thequantity toThe whichaneconomy extent will “grow green” Sustainable infrastructure purchased mainlyby institutionalinvestors; of billion worth “green bonds” thathave been 2008, the World issuedmore Bankhas than$2 Since infrastructure projectswillbeimportant. funds, andotherfinancialinstitutionsto finance insurance companies, pensionandprovident and investment guidelinesthatenablebanks, development bondmarket long-term this effort, In andtheirclientfirms). sheets offinancialfirms mismatch in thebalancemismatch andcurrency (thatis, the1997financialcrisis maturity sparked the so-called “double mismatch” problem that increasing role insustainingfinanceto avoid Finally, mustplay an domesticfinancialmarkets potential loss”“first from investments. cases, publicfundscanbeusedto cover the some risks. In such aspoliticalandregulatory 21

will beintheform of 18,

19,

20 17

financial risk, a strong casecanbemadeinsome financial risk, constrained by more vigilant managementof addition,withinfrastructure financingIn sustainable consumption. andto reward andefficiency of conservation a lackofinstrumentsto monetize thebenefits gainsremains hamperedpotential efficiency by infrastructure. However, therealization ofhuge centralized the needforsome large-scale pays for itself in resource savings and can offset normally operating costs. Investingefficiency in capitalcostswithlifetimebalancing up-front are sequencedand financed appropriately, than conventional infrastructureifinvestments Sustainable infrastructureneednotcostmore investment climate. mobility, publichealthandtheaccess to markets, air andwater pollution,whileimproving urban reduce greenhouse gas (GHG) emissionsand planninghelp and urban sustainable transport and socialbenefits. For example, investments in providehelp multiple environmental, economic approaches, sustainable infrastructurealsocan and socialinclusion. Through integrated operating costsandincreases accessibility around theneedsofpeople atascalethatreduces systems andbuildingwith more eco-efficient replacing andupgrading existinginfrastructure into infrastructureinvolvessustainability an alternative to business asusual. Building investments. Sustainableinfrastructureoffers considerationsininfrastructureto sustainability aware ofthese issues and are paying attention arePlanners and decisionmakers increasingly ofsustainableinfrastructure.Benefits modes. transportation aswell aschoiceofof householdsandenterprises infrastructure affects for generationsthelocation the design of the road andpublictransport ofthe original design. Similarly,had been part measuresthan ifwater andenergy efficiency it isretrofitted atacostgenerallymuchhigher in decadesofwasted energy andwater, unless attention to results water andenergy efficiency instance, abuildingdesigned withoutsufficient highcost.Forcan bereversed onlyatvery that consequences long-term has planning prospects for sustainableoutcomes. Inappropriate of resource usefor many decades, reducing the regional into economies patterns unsustainable development ofconventional infrastructurelocks isclosing, patterns change resource-use asthe Conversely, to thewindow ofopportunity

Only Singapore, the lastfew decades, withmixed results atbest. Many solutionshave intheregion beentried in developing eco-cities. understanding, concept, modelandsolutionsfor and thePacific willneedto develop theirown unprecedented inAsia anddeveloping countries intheregiondynamics ofurbanization are urbanized regions, thepace, magnitude and inalreadyexperiences developed andhighly While many from lessonscanbelearned governance processes. have and focused more onsocio-economic approaches other technical best the solutions; atresourcemodels, looking flows andidentifying have focused onanalysingcitiesasinput-output from different perspectives. approaches Some made to ofcities conceptualize thesustainability exists, have butmany efforts beenof eco-city No agreed orcommonlyaccepted definition down approaches, whichneedto bebalanced show thelimitations ofentirelyExperiences top- governance factor. appearstothe critical be issuesrelatedsustainability but to urbanization, of information existsontechnical solutionsto but theirreplicability remains A wealth aconcern. other isolated casesstandoutassuccessstories, society. growth anddevelop amore harmonious cities to lower GHGemissions, maintaineconomic provinces inorder to identifyamodelfor Chinese five in cities low-carbon of development pilot forChina, example, hasrecently launcheda “eco-cities” intheregion. anditsapplicability of concept the on attention placed been has to develop inasustainablemanner, renewed While citiesintheAsian andPacific region strive circumstances.the right a viablealternative to centralized systems under built,offering owned andquickly be community (for example, for water andenergy supply)can the caseofenergy systems, decentralized systems inChapter 5for As discussedfurther lower risk. relatively with and budgets smaller start which cases for modularandscalabledesign approaches, manner. inasustainableandinclusive access to services for expansion of physical infrastructure and NURM)to address themassive (JN need Mission Renewal NehruNationalUrban the Jawaharlal Sustainable Cities. ASEAN GroupWorking onEnvironmentally thoughthe goodpractices models by sharing 22 23 haslaunched The Government ofIndia ASEAN countries are exploring practical are practical ASEANcountries exploring 25 some eco-towns inJapan someeco-towns 24

26 and

willingness to invest intheseareas. economic growth have government outstripped gap hascontinuedtogrow as populationand control andremediation andtheinvestment have under-invested typically inenvironmental not beforgotten. inAsia Countries andthePacific problems airandwater pollution)should (like control ofthepresent, persistent environmental ininvesting inremediationhuge backlog and been ingreen andgreen industries growth, the addition,whilemuchoftherecent interestIn has more energy. for disposal,must betransported thususing amounts ofwaste that,instead ofbeingrecycled, resources over theirlifetimes andgenerate large consume considerableenergythat and water example,buildingspublic of to theconstruction are comparatively often weak. This can lead, for design pushing for and ministries eco-efficient different organizations not sufficient, isoften individual sectors. Communication the between infrastructure development related to these education, healthandtheoverall financingof for energy, water, sanitation,waste, planning, in somecases, are sector theprivate responsible constraints. Different government bodiesand, difficult to implementdueto institutional Unfortunately, integrated approaches are often specialize incleantechnologies andservices. can stimulate jobsandcompaniesthat new institutional conditions, integrated approaches and policy consumption. Undertheright will have muchlesseffect onreducing energy sector,planning inthetransport switching fuels sustainability. For example, without careful badly neededto ensure environmentallong-term of Asian mega cities, integrated approaches are andtheexpansion rates ofurbanization rising for theirconstruction. decadesafter Thus, with onhow energy,impact water andwaste are used systems have considerable Buildings andtransport from otherareas. these areas cannotbeconsidered inexclusion implementation andmanagementofeach management. To alarge theplanning, extent, andsolidwaste sanitation, sustainabletransport, are discussedbelow cleanenergy, water and Four areas ofsustainableinfrastructure key Priority areasfor infrastructure. sustainable development. approaches infrastructure to urban participatory with bottom-up initiatives andmore inclusive and

55 Greening Growth: Towards a Green Economy 56 Greening Growth: Towards a Green Economy At the heart ofthisproblem istheperceptionAt of the heart to impediment greatera serious energy efficiency. invest energy incost-effective efficiency, whichis revenues andprofits ortheircustomers whenthey under current businessmodels. lose Utilities Unfortunately, isalow priority energy efficiency (coal to naturalgas). stages andpossiblyby switchingdistribution fuel in theproduction,generation,transmissionand and supplysides, thelatter viaimprovements gainsaboundonboththedemandefficiency forfor initiatives. energy Opportunities efficiency power plants, whileproviding additional funding to avoid ordefer investments large-scale innew substantial dividendsby, for example, helping inanintegratedand efficiency mannercanpay change. Prioritizing investment inconservation greenachieving growth andmitigatingclimate neededfor ofthemanycost-effective actions isamongthemost Improving energy efficiency investments. energy-efficiency are stillfavoured over generationand distributed energy, centralized power whilelarge-scale plants hard targets for andrenewable energy efficiency fossil fuels. Also, few have countries committed to been counteracted by hugeincreases intheuseof intensities inmany countries, thesegainshave use. Ontheotherhand, despite decliningenergy to promote more and cleaner energy efficient being considered, tested andutilized intheregion policy, andfinancialinstrumentsare regulatory currently mixed intheregion. Ononehand, many prospectsforsustainability theenergy are sector energy useto foster green growth. The cleaner fuels, andthe expansion of renewable on improving energy efficiency, switching to Energy. energy-efficiency projects. energy-efficiency investment by involving inenergy efficiency the inprovidingThai finance sector low-interest loansfor Fund Revolving Energy Efficiency isfundedby theENCON Fund andspecificallyfocuses onstimulating studies. policy and projects, buildingactivities incentives loans), capacity (suchasgrants orsoft The The fundisusedto through promote research, energy conservation development, demonstration b a diesel, fueloilandkerosenesales. The annualrevenue is$60millionto from over thislevy $150 million. which receives revenue ofabout0.04to from 0.25 asmalllevy Thai baht(lessthan$0.01)/litre ongasoline, In Thailand, Promotion legislation in 1992 established the Energy Conservation Fund (ENCON Fund), Box 3.7:Promoting in energy efficiency Thailand Basedontheexchange rate 2010. of32baht=$1.0,May Energy Futures Co. Ltd., Ltd Australia Group andDanishManagement Pty (Thailand) revolving“Thailand’s energy efficiency 20 June2010. efa.solsticetrial. com/admin/Library/David/Published%20Reports/2005/ ThailandsEnergyEfficiencyRevolvingFund.pdf on fund: acasestudy”, prepared for theAsia-Pacific Energy Economic Cooperation (APEC) Group,Working accessedfrom http:// Investment intheenergy canfocus sector b

for energy services shouldnotfocusfor on just energy services policies, programmes andinstitutions. Financing needs to beintegrated with rural development energy modern services of the expansion rates, low electrification withvery countries In fuels asglobaleconomiescontinueto grow. energy couldhelpreduce the demand for fossil developed onalarge enoughscale, renewable for investments. bothpublicandprivate If resources) canprovide significant opportunities to fullyutilize intermittent renewable energy energy (aswell astheexpansionofenergy storage increase ofrenewable intheinstalledcapacity arapid addition, publicpoliciesthatsupport In improvements,efficiency asin Thailand (Box 3.7). energy the people most inneedit,or infurther (andrenewable)access to modern energy for asabasisfor investmentsserve inexpanding measures thatpromote can energy efficiency Through innovative financingmechanisms, other sources offinancingasrequired. and canbesupplemented by and international used inthemostefficientandeffective manner policiesallowsectoral domesticfundingto be differentbetween sectors. cross- Innovative thathampercooperation andsynergybarriers commitment to overcome institutionalandpolicy This willrequire strong policiesandhigh-level integratedefficiency into resource portfolios. interests oftheircustomers by having energy align thefinancial interest ofutilitieswiththe response,In reforms are neededto help production,mobility). heating, industrial cooking, (for sector example, asaservice than rather panels, coal-fired power plants, windturbines) (forenergy astechnology-driven example, solar 27

a

Jakarta in andincrease accessto water services leakage provision modelshave beenfound to reduce restructuring.corporate water Community-based rehabilitation, andasset management,network revenue reform, water reduction,tariff improved non- gainscanbeensured by supporting efficiency sector, theurban management systems). In physical restoration, coupledwithsustainable development andrehabilitation (for example, improvements, recharge), andwatershed artificial (for infrastructure example,irrigation drainage through developing micronew irrigation), (for productivity example,enhancing irrigation rural areas, gainsrelateIn to efficiency technological fixes. is farmore economicalthancostlysupply-side waterlong-term supplyproblems inaway that programmes)and efficiency canhelpameliorate programmes (analogousto energy conservation of water use. Water andreuseconservation demand-side measures to improve efficiency the supply-side measures mustbeaccompaniedby continually beexpandedandimproved and Water must networks suppliesandirrigation investment andcompetition. health care costsandgainsfrom productivity, and there are nationalbenefitsinsavings from upto $46inbenefitstoearns poorhouseholds investments are $1 hugeandcompelling. Every returns onwater service sanitation supplyand are enormous, whilethesocialandeconomic for water systems andsanitation region inthe Water andsanitation. feed-in tariffs andnetmetering. energy standards, includerenewable portfolio pursued intheregion to promote renewable measures beingdetail inChapter 5,important poor financingschemes. As discussedingreater required, pro- and policies with coupled service institutions thatcansupplyandmaintainthe to develop hasbeenundertaken and work where considerableplanning, consultation hasbeenincountries of cleanenergy services plans oftheregion. The mosteffective expansion into accountthecurrentfuture and needs and that isnotlocallyavailable, and/ordoesnottake community, requires considerablemaintenance climate or circumstances and household the of the technology may beinappropriate for the installing decentralized technologies alone; reaching underserved communities, waterreaching must underserved To whilealso gains ensure theseefficiency 29 and Sri Lanka. andSri 30 The investment needs 28

in thepursuitofgreen growth. options are requiredmore sustainable transport mitigated increases inGHG emissions. However, airpollutantsandhaveof transport-related have helpedto address health-threatening levels switching andimproved vehicle fuelefficiency Sustainable transport. centralized systems. to operate, quickto installandcheaperthan region. These systems are easyto deploy, simple digesters have aproven trackrecord in the systems biogas ecologicaland other sanitation per centwater reuse rate. buildings andin2005achieved anestimated 10 and officetreatment systems apartment in local regulation for decentralized wastewater For implemented ofBeijing instance, thecity reuse incommercial andresidential buildings. improvements thatincludeon-site treatment and andend-useefficiencytransmission networks, existing sewer systems, reduction oflossesin including stand-alonesystems andretrofits to should promote modularwaste treatment plants, cent ofthetotal system cost. may accountforpipe networks upto 90per whereas collection financingconstraintsexist, centralized systems may notbe arealistic option For wastewater urban treatment, western-style is apotential modelfor theregion. administrations. The Singapore of case (Box 3.8) levels ofgovernment, from centralto local sectors,public andprivate andinthedifferent will require acollaborative approach the between recharge willallberequired. Allthesemeasures recycling, rainwater andgroundwater harvesting, low. addition,investments In inwater reuse and thereby promoting costs innovation andkeeping appropriate signals are price for sent, efficiency to develop moremarkets fullywillensure that inwater andenablingwaterEstablishing rights the region. design oftransformational water agendasacross must now betheforemost consideration in the coupled with the climate change impacts, thisregard,uses. In thewater-energy-food nexus, will ensurecompeting balancebetween theright governed and regulators by water markets who economic good. Further,its physical bemust use more be priced universally andexplicitlyasan will improve water security. withavailablewater cycle “dry” technologies Furthermore, decouplingsanitationfrom the In the transport sector, the transport In fuel 33

34 Waterless urinals, Waterless 36 31

Rather, policies 32 35

57 Greening Growth: Towards a Green Economy 58 Greening Growth: Towards a Green Economy has alsobeensuccessful. system inAhmedabad, commissioned BRT India, stations, raisingthe barfor allcities. Award) integrates lanes,share bike andmetro (recipient ofthe 2011Sustainable Transport Guangzhou’s system BRT world-class new and Indonesia, including China,India, Thailand. in the Asianseveral countries and Pacific region, Such systems are operatingorbeingplannedin measures to managethedemandfor transport. if planninganddesign are integrated withother be widelyreplicated option asacost-effective Latin America’s systems could successfulBRT non-motorized transport. optionsand that promote otherpublictransport planning approachesbe combined with urban provide faster, more efficientservice. These can at lower costby usingdedicated buslanesto railsystem ofaheavy the passengercapacity systems canprovide bus rapidtransit(BRT) technology andoperations. As analternative, sophisticated approaches to financing, tariffs, demands, buttheseare costlyandrequire cities, especiallyfor bigcitieswithhightransport Metro railsystems may beappropriate for some www.adb.org/documents/reports/every-drop-counts/every-drop-counts.pdf drop Every counts:Source: Learning Asian Bank, Development from goodpractices 2010),accessedfrom cities (Manila, in eight Asian intheSingapore andlocalcompaniesactive 50 international market. becoming more self-sufficientinrelation to water. withmore than There water industry isalsoathriving reduce percapitadomesticwater consumptiontoaims to 140litres/day further by 2030.Singapore is steadily from level itshighesthistorical of175litres/day in1994to 156litres/day in2008,andthePUB haveAll oftheseefforts yieldedpositive results. Per capitadomesticwater consumptiondeclined andmotivated workforce. andanexperienced frameworks have includedahighlevel ofgovernment effectiveness, strong politicalwill, effective legalandregulatory water, water new supplysources andto construct to meetfuture enabling conditions demand. Other research anddevelopment to identifyinnovative andmore efficientways oftreating anddistributing tariffs thatreflectthetruecostofwater production,supplyandtreatment frees upotherfundsfor andthehigherincremental costofadditionalsupplies. Havingthe scarcityofwater water inthecountry Water are prices setatalevel to recover thefullcostsofproducing andsupplyingit,aswell asto reflect education campaigns. based, progressive tax,standards for water tariffs andawater householdwater conservation fittingsand NEWater wastewater) (recycled anddesalinated water. measures Demand-side includeconsumption- Taps” strategy thatidentifiesfoursources for key development: localwater water, catchments, imported measures withdemand-sidemeasures. Supply-sidemeasures are developed through the “Four National ofSingapore’sA bigpart successisdueto theintegrated approach thatcomplementssupply-side of thelowest rates intheworld. manner. hassucceededindiversifying thecity-state’s It water,while lowering non-revenue water to one BoardUtilities (PUB)manageswater supply, water catchment andsewerage inanintegrated andholistic water management for solutions. Agloballeaderinintegrated water management,Singapore’s Public Cities thatstrugglewithwater scarcityandpollutioncanlookto Singapore’s insustainable experience Boxm 3.8: anaging water demandinSingapore 38 37 The recently The producer responsibility), coupledwith integrated ofproducts (forcycle instancethrough extended policies to address ofthelife specific aspects ofKoreahaveand theRepublic established acrossis beingexperienced the region. Japan deal withthemountingproblem ofwaste that solid waste managementsolutions if it is to aswelland productionpatterns asintegrated economy will have to address consumption wasteSolid management. systems. transport and operations sustainable for low-carbon, policies, institutions, technology, infrastructure can helpprovide theresources required for the raisedthroughRevenues appropriate pricing andsystems. network transport maintain theurban generating financial resources to expand and demand. These have theaddedadvantageby playcan role central a managing in transport elsewhere, vehicle orroad mechanisms pricing been demonstrated inSingapore, London and reforming energy andfuelsubsidies. As has and use. willneedto Policymakers consider ways ofmanaging growth invehicle ownership At the same time, cities will need to find better Aresource-efficient

slums andsquatter settlements. enter, especiallyinlow-income neighbourhoods, by localgovernments orlarge companiescannot waste inplaceswhere conventional trucksowned andcancollect equipment, suchaspushcarts, uses labour-intensive methodsandsimple adapted to localconditions, theinformal sector of informal waste and resellers. collectors Well should alsoconsider the potential contribution products andunrecoverable wastes. They recyclabletechnologies to manage partly can promote appropriate andcost-effective To pursuesuchanapproach, governments businessopportunities. new employmentgeneration, new and promotion of economic benefitsthrough costsavings, income Suchapproaches offerbusiness opportunities. that treat waste streams asresources andas affordable solutions and community-based combinedconventionaltypically solutionswith in managing theirwaste sustainablyhave The citiesthathave enjoyed themostsuccess promote integrated solidwaste management. streams, to mustbecoupledwithlocalefforts specific laws andregulations for specificwaste A broad rangeofnationallaws, including and waste recovery). waste management(includingsource separation investments innaturalcapital sothatecosystem and climate change. appropriate Ensuring of life, to naturaldisasters andvulnerability economicprosperity, long-term impact quality which thenaturalenvironment is managedwill investments innatural capital. The way in targeted andappropriate Facilitating transformation basedonnaturalcapital. for economicfor theseservices harnessing flood control—but alsoenhancethepotential the economy— such as water regulation and thatsupport secure ecosystem services critical sustaining life. Sustainablemanagementhelps andforwhich isthebasisfor economicactivity providerepresent andsupport, “natural capital,” forests andcoralreefs) they andthebiodiversity (such aswetlands, watershed areas, mangrove The natural environment, specificecosystems i people are notexposedto unreasonable risks. conditions oftheinformal to sector ensure that time, attention mustbepaidto theworking nvestment innatural capital 39 At the same long term, ranginglong term, from 7to 79percent. ecosystems have highrates ofreturn over the investmentssustainable managementof in showed study that (TEEB) and Biodiversity Preliminary by work The Economics ofEcosystems feedstocks, andotheragricultural commodities. pressure to meetmultipleneeds—for food, fuel and agriculture, whichisincreasingly under forestry,include protection coastalandmarine for increasing theinvestments innaturalcapital potentially promote greener growth. sectors Key sustainable basisfor economicactivity, andso stakeholders, canprovide amore environmentally through measures to promote investments by made directlyby governments andindirectly, that investments innaturalcapital, boththose provide. from Experiences theregion show focus ontheeconomicbenefitsthatthey policy ecosystems continuesbecauseofalackexplicit in theregion grow. However, thedegradation of increasing andpopulations aseconomies demand thatecosystems provide areThe services in societies isthebasisfor sustainabledevelopment. economiesand flows continueto support service continue, and economic activity expands, itiscontinue, andeconomicactivity As anddecentralizationprocesses privatization and localjobcreation perspectives. difficult to achieve, from bothnationalbudgetary management ofnaturalresources increasingly sustainable make in developing countries) demands onnationalbudgets(especially of sustainablemanagementandcontinuing costssuch investments. opportunity Rising faceseveral challengesinsecuring policymakers the responsibilityofgovernments. However, is ecosystem maintaining that services view manywillholdtheIndeed, stakeholders other economicbenefitsvaluedat$100million. whichhasgenerated 6,400jobsandattraction, wetlands andreed fields, into aneco-tourism itstidalecosystem, withextensive turned city ofKorea. intheRepublic Suncheon City The the lastfive years. Anexampleisprovided by investments usingthesemechanismswithin Governments have madeseveral important protected areas. and rehabilitation, andestablishmentof policies andregulations,direct management are employed: nationalbudgets, land-usezoning resources.natural Different investment modalities investors insustainablemanagementof important Governments inthe region are currently themost 40 40 41

59 Greening Growth: Towards a Green Economy 60 Greening Growth: Towards a Green Economy Table ofsustainablemanagement 3.1:Beneficiaries offorests case for investments inecosystem services. the companieswere convinced ofthebusiness companies demonstrated that84percentof study of25government owned andprivately thePhilippines,be higherthanexpected. In a sustainable naturalresource managementmay The willingness to sector of the private invest in and international. as shown in Table 3.1.Investors canbebothlocal economic benefit through commercial entities, provided. receive beneficiaries services Indirect capturethat economic benefitfrom goodsand areDirect beneficiaries usuallycommercial entities risks to corporate performance: operational, to performance: corporate risks Ecosystem degradation canposeanumberof categorized as “direct” and “indirect” beneficiaries. Potential investorsmay be inecosystem services from demand. international opportunities and(iv)capture where necessary; partners, sustainably managednaturalresources as for engaging of beneficiaries opportunities of government investments; (iii)identifyspecific value;(ii)increaseinternational theeffectiveness or potential national or local value, as well as existing thatholdimportant ecosystem services arePolicymakers challengedto: (i)identify water manufacturers)orlocalgovernments. operatorsentities (suchastourism orbottled resource managementiscaptured by private oftheeconomicbenefitsnatural proportion to note that that agrowingalso important services Climate regulation support Biodiversity beauty Scenic/landscape Hydrological services Forest ecosystem service • • • • • • • • • • Energy-intensive industries Greenhouse gasemitters offsetCarbon intermediaries Investors markets incarbon services tourism-relatedand nature-based providing Enterprises eco-tourism interests conservation International Bioprospecting interests services tourism-relatedand nature-based providing Enterprises eco-tourism Hydropower producers Water utilities Direct beneficiaries/users Direct 43 43 42

well as market- andproduction-related.well asmarket- regulatory, legal, financialandreputational as to agricultural purposes. if 45,000hectaresofpineforests were converted million/year inaddedoperatingandplantcosts hydropowerDa Nhim plantwould lose$3.75 example, research in Viet Namshows thatthe will bedelivered for oftheagreement. theperiod that, ideally, ensures thattheecosystem service this way,In the “buyer” aninvestment canmake inreturn forarrangements apayment orreward. who agrees to specificecosystem management forestland owner orcommunity organization), provider (foran ecosystem service example, a the “purchase” from ofanecosystem service in naturalcapital. DirectPESschemesinvolve ments provide away to encourageinvestments Payment-for-ecosystem-services (PES)arrange- Table 3.2. and investment mechanisms, asshown in investors requires different interventions policy Facilitating investments from eachgroup of around landuse. such aschemecouldresolve orprevent conflict reduceand costs foroperational water treatment, an investment future insecuring water quality addition to helping thewater make utility In doesnotreduce orquantity. water quality activity paid for canbe their farming that farmers ensuring inawatershed, andsmallfarmers water the utility For example, underanagreement a between • • • • • • • • • Global community energy usersinallsectors Non-hydropower, non-renewable offsetCarbon purchasers Tourists Individuals Drug purchasers Tourists sectors and households sectors Hydropower users–alleconomic andhouseholds sectors waterIntensive users–alleconomic indirect beneficiaries/users indirect Allocating a monetary valueto Allocating amonetary 45 44 As an 46 46 instance, one scheme in Lombok, Indonesia, has instance, Indonesia, oneschemeinLombok, successes haveMost beensmallinscale. For poverty reduction. poverty land-use planningandzoning regulations, and and costsavings, more effectively-enforced infrastructureinvestmentsthe potential for smart benefits includeincreased societalawareness, wider society. for benefitsthatmay theirlong-term accrueto the improve theincentives formanaging ecosystems inthisway can,therefore,ecosystem services scale exist in other countries intheregion.scale existinothercountries onasmaller arrangements while many PES-like utilities inwatershed management(Box 3.9), investments by hydropower companiesandwater for whichhasfacilitated ecosystem services, step ofproviding alegalbasis for payments schemes. theimportant Viet Namhasalsotaken mainly through large nationalpublicpayment toin theworld protect itsdegraded watersheds, China hasoneofthelargest PESarrangements sustainable natural resource management Tablei 3.2: providers to receive andusesuch investments. of appropriate mechanismsfor ecosystem service “buyers” to invest viaPES isstilllimited by thelack ofawiderangepotential voluntaryability Despite theserecent accomplishments, the governments required from Policy support Investments oaiyGovernments modality nvestment modalities and policy support fromnvestment governments support for modalitiesandpolicy investments in Under the right conditions,Under theright other 47 47 -- • • • financial incentives and arrangements forestCommunity protected areas Establishment of allocations Direct budget 48

• • • • • • • • • • 49 Companies andother reform Green taxandbudget (environment bonds) Securitization banks biodiversity Establishment of mechanisms and policy services payments for ecosystem Establishment of Tax breaks environmental impact) and consumption(lower production Eco-efficient communities approaches with Co-management offsetsCarbon PES financing Land purchase (Direct beneficiaries) (Direct

sustainable benefits. canhave immediate,markets targeted and valuesinlocal ecosystemRevealing service regulations.district from needed new support policy and backing (water provision the and case) this in services offorestlow-income beneficiaries ecosystem of financing, willingness to pay from even has foundarrangement sustainable source a household andcommercial water users. This to able been secure regular investments from sustainable naturalresource management. the incentives for, of, and impacts investment in level inorder to deliver afundamentalchangein can beelevated to anationalandregional policy presented payments) or biodiversity by carbon policies andmechanisms(suchasthose problemsthe globalcommons.” of Investment to addressassets offer opportunities “local ontheuseofglobalenvironmentaltradable rights are being promoted in the region, combined degradation REDDpilot projects (REDD).Several reducing emissions from deforestation andforest for emissionreductionsfrom carbon markets An emerging development isthecreation of institutions • • • • • • • 50 (indirect beneficiaries) (indirect reform Green taxandbudget mechanisms and policy services payments for ecosystem establishment of for Support tools information policy andother Eco-labelling Tax breaks (for example, coffee) products nature-based natural productsor Price premiums for PES arrangements –through electricity) Green fees (water, offsetsCarbon However, systems of Consumers 51

61 Greening Growth: Towards a Green Economy 62 Greening Growth: Towards a Green Economy Papua and Islands Solomon Guinea, New Vanuatu Asia andthePacific, Basin, theMekong Indonesia, Australia, theUnited States andothercountries. In into appropriations andpendinglegislation in REDDisalsoincorporated activities). REDD-plus with uptoin grant $1billion financingfor to provide Indonesia the GovernmentofNorway agreements for example, thecommitmentby andregional transactions andbilateralmarket can stillplay asignificant role viavoluntary 2012 globalclimate regime. PESmechanisms to isexpected beincludedinthepost- REDD-plus transactions. rules for ofincome from distribution REDD to identifynational isthefirstcountry Indonesia livelihoods.sustaining resource-dependent fragile biodiversity and ecosystems, conserving whileprotectingchange andruralpoverty to address bothclimatea uniqueopportunity investments conditions,right REDD-plus provide Underthe asREDD-plus). (collectively known development andcommunity conservation with sustainableforest management,biodiversity Nam, 21June2010. “Speech onthemechanismfor payments for forest inLamDong.” ecosystem services Source: monitoring, and(c) to refine themechanismsfor managing andutilizingthefunds. area allocated for protection andthepayment level, (b)to apply information technology to strengthen from ethnichouseholds. a highlevel ofparticipation The province plans(a)to increase boththeforest As ofJune2010,allocations203,335haforest hadbeenmadeto 8,022households. There hasbeen hydropower andcleanwater plants, supplyplants.” eco-tourism, They have understood thatpayment for FESisaninvestment for thesustainabledevelopment of created ahighlevel ofconsensus among people, theagencies at locallevel, andespeciallythe payers. of householdsinvolved were inforestry that officialsunderline alsoimproved. High-ranking has “this rates inthepilotareareduced reduced by 50percentandpoverty by 15percent. The livelihoods received payment for FESwere better protected, reportedly withtheincidenceofillegallogging offences As aresult, the awareness andatalllevels hasbeenraised; forests ofpeopleinallsectors inareas that forest landmanagedby eachhousehold. 270,000-290,000)/hectare, withanaverage of25.4hectares(ha) households atarate of$14–15(VND million in2008-2009. These fundswere forest-managing allocated FESpayments to to make participating regulating water flow through improved forest management. These investments totalled some$5.2 pilot site, hydropowerwater and supplyplantsmadeinvestmentsimproving in and water quality 380/QD-TTg ofDecision impact years,After almosttwo thepreliminary At wasevident. theLamDong forcontracted forest protection. providers—forest fromand benefit must pay them service the ownerorganizations andhouseholds fornatural landscapesare whichindividuals, considered businessesandorganizations services thatuse offorestprotection ecosystems, anddevelopment andtheconservation biodiversity, andforest Programme. from theAsiacore Conservation Regional Biodiversity support Under thepolicy, forest 380/QD-TTgDecision Laprovinces 2008,establishedpilotsitesandSon inLamDong of30April with In forViet payments Nam,apilotpolicy for forest (FES),establishedby Prime Minister’s ecosystem services Box onpayments 3.9:Pilot for policy ecosystem - services Viet n Mr. HoangSyRegional Son—Vice atthesecondSouth-East ChairofPPCLamDong Workshop onPESinDaLat, Viet sectors: forestry,sectors: agriculture, freshwater and cent ofGDP($325billion) to natural capital green whichallocates economy 0.5per report, capital. Thefordone modellingwork theUNEP goals, environmental, economic, socialandequity of future generations. Ideally, itcombines food needswithoutcompromising the rights sustainable agriculture involves meetingpresent widely viewed asmeansto dothis. Essentially, natural capitaland “sustainable” agriculture is for sector increasingas akey investments in Sustainable agriculture. Agriculture isseen results.the benefitsandmonitoring ofappropriate afairdistribution actions,ensuring and forest stocks, carbon channelingfinancingto referencedetermining baselinesofpasttrends system for organizing REDDactions,such as associated withtheestablishmentofacredible shouldbenoted thatmany challengesareIt andareactions amongtheirlargest beneficiaries. intheseare poisedto besignificant participants 52 whilemaintainingandbuildingnatural am consumption isdeclining. increasing pasture are lands) needed, rice while of non-food (fodder) crops (andcorresponding from for livestock, whichincreasing quantities towardsunsustainably more protein animal food are patterns alsomoving security. Dietary willberequiredinterventions to ensure future supplies, bothdemand-sideandsupply-side As sustainableenergy withensuring andwater aswell most, the poor asclimate change. ofanimminentfoodwarnings thatwillaffect crisis increasing food andthe andwater insecurity for majorcrops. improved andincreasing soilquality globalyields 2050 ascompared withbusinessasusualthrough the agriculture by sector about10percentin fisheries, projectsanincrease invalueadded work of international research international of work institutions. For gainswillcomeasaresultsustainability ofthe Otheravoid andshortages. escalatingprices will also have to beusedmore efficiently to fertilizer, phosphate,the past.Mineral particularly no choicebutto uselesswater andlandthanin willhave farmers be drivenby resource scarcity: thiswill environmentally sustainableandinpart will haveagricultural practices to become more For long-term sustainability, these intensive consumption patterns, environmental risks, non-food crops, changing productionand competition for incentives landandrising for facesincreasinglysector complexchallenges— As discussed inChapter 1,theagricultural dietary patterns. dietary demand, whichisincreasing despite changing produce neededto meet thequantitiesofrice systemsintensive are farming rice required to (IRRI) points outthat Research Institute Rice revolution—are againneeded. The International of staplecrops—the basisofthefirstgreen role,play akey ashuge leapsintheproductivity intensive agricultural systemstocontinue must For gainsneeded, productivity theshort-term sustainability. gainsandlong-term productivity short-term theneedfor balancebetween to findtheright willbeimperativeother agricultural inputs. It useofagricultural lands, water and eco-efficient be developed andimplemented for optimaland growing food demands, whilestrategies must and rapidgreenrevolution is neededto meet To meetthesupply-sidechallenges, asecond willbeamajorchallengeforpatterns theregion. and awareness to influencefuture consumption 53 57 56 Consumer education 54 55 payments thatrecognize thestewardship of canbesupplemented by prices in market sustainable agricultural practices,fluctuations provide somemotivationto pursuemore addition,whileincreasing foodIn can prices water, andpesticide. fertilizer yielding, diseaseresistant, andthatthrivewithless super rice” thatare varieties more robust, high- are developing instance, IRRIandpartners “green compromising to trade. theirability environmental damageandwithoutfurther technologies causing without inputs and locallyavailableraising incomeswithlow-cost, focusing onimproving food productionand means increasing insitu, totalproductivity farm poor to feed themselves. For poorfarmers, this there isalsoaneedto improve ofthe theability offoodin terms accessandutilization. Thus, food security, ithasproven lessthansatisfactory pillarsof andstability may satisfytheadequacy However, althoughintensification ofagriculture and water. are avoided, thusminimizingpollutionofair, soil systems andpesticides inwhichmineralfertilizers organic agriculture, that is, diverse crop-livestock Sustainable agriculture isgenerallyequated with by more than12percent. production usingexistingsystems would increase the present globalaverage yieldsofthese crops, wheat producing were countries to reach only andand requiring themajorrice lessinputs. If moretermed “eco-efficient’— more productive respectively, ofallfemale employment in2009. accounting for 75percentand71cent, inthePacific Asia, islandsandSouth particularly the mostprominent employer ofwomen, economies oftheregion, agriculture remains considerations into account. ofapproachesgender thattake importance women intheregion farmers have shown the and resilience. withsupporting Experiences asabasisforgenetic diversity competitiveness andpreserving offarmers traditional knowledge the should includeharnessing These efforts smallholders.producers, particularly food by “greening” andsupporting food markets incentives forof market sustainablyproduced shouldbeaccompaniedby thecreationefforts the poorandenvironment (Box 3.10).Such tandem withmore intensive canhelp practices) based onsustainable, multicropping systems (in more labour-intensive, small-scalepractices meet future globalfood demand, promoting 61 While organic alonecannot farming 59

In allthedeveloping In 58 Such varieties are Suchvarieties 60 62

63 Greening Growth: Towards a Green Economy 64 Greening Growth: Towards a Green Economy investment decisions thatdefinetheeconomy) changes (thatis, insocial preferences shifts and integrated systemic strategies that support use andenvironmental pressure. This requires that provide incentives for reducing resource policies thatboosteconomicgrowth andthose thatintegratesrequires framework apolicy As noted earlier, greening economicgrowth societies resilient economies and key steps for more An enablingenvironment: service payments requires additionalresearch.service through suchecosystemeconomic activity can bemadeamore secure andrewarding control. for toThe whichfarming extent food as biodiversity, aquifer recharge orsoilerosion for suchfarmers enhancingecosystem services, response to the Sufficiency Economyresponse of to strategy theSufficiency ofH.M.theKing Thailand. organic initiatives farming canbefound examplesofcommunity-based Several in Thailand andare akey system, use of debris oftreessystem, use ofdebris usedto grow cropsfruits, like coconutsorcoffee beansfor cooking. energywell as asfood,leftoverssuch asuseof fromcrops rice to produce bioenergy,agroforestryor inan Another “green” approach ismore widespread applicationofintegrated systems thatprovide farming arrangements. specificseedsandotherrequirementsof agro-chemicals, farming thatmay beimposedundercontract “debt cycle” fundloanpayments loansareto andnew cover taken inwhichsuccessive thecosts harvests include improved health,asagrochemical farmer inputsare eliminated orreduced, andanexitfrom the of firewood. benefitwomen becausethere isnoneedfor themtoand particularly leave theircrops to goinsearch become popularamongsmall-scalefarmers. Suchsystems increase resilience farm to climate change production usinglivestock waste to produce haslongbeenadvocated gasfor butsofarnot cooking d c b a ofinterdependentthe healthandproductivity communitiesofplants, animalsandpeople. Only attheorganic endoftheagriculture doesnaturalcapitalincrease, farming spectrum optimizing Boxo 3.10: as maintainsoilfertility. energy. sequestration, andavoiding lossofagro-biodiversity, aswell ascreating lesspollutionandusing water table, reduced erosion combinedwithimproved organic matter insoils, leadingto better carbon in naturalcapitalisdue, amongotherthings, to better water retention insoil, improvement inthe King of King Thailand, RoyalBiography, andHis Agricultural H.M.The King Work, accessedfrom Development http://kingofthailand.cgi. N. El-Hage Scialabba, N.El-Hage Scialabba, “Organic agriculture andfood security”, paperpresented Conference atthe International onOrganic Food andAgriculture Organization oftheUnited Nations(FAO) by Centre, growing Media fuelandfood,17 poverty Reducing United NationsConference on Trade andUnited and Development NationsEnvironment Programme, Organic agriculture and February (Rome, FAO, 2011),accessedfrom www.fao.org/news/story/en/item/51165/icode/ 2011 on18May May 2011. May inAfricafood security (New York, United Nations, 2008),accessedfrom www.unctad.org/en/docs/ditcted200715_en.pdf on18 Agriculture andFood Security, Rome, 2007(Rome, May Food andAgriculture Organization oftheUnited Nations[FAO]). ac.th/king/AgriculturalDevelopmentWork1-en.php

Such systems provide offood adiversity and thusbenefitconsumers’products aswell nutrition rganic farming andintegrated farmingsystems b

negative impacts), andhumancapitalformation.negative impacts), green growth (including managing potential governance foran integrated framework, policy approach,and monitoring clear vision developing to establisha success willdependontheability of thechallengemeansthatThe complexity reinforcing ways. in integrated, andmutually complementary Japan (working to reduce, (working Japan reuse andrecycle— economy),China (aimingfor aresource-efficient frameworks, suchasinlevel initiatives andpolicy ofgrowth ofthequality aspects through high- have signalled theirintent to improve different As discussedinChapter 1,several countries isneededto action “jump-start” green growth. Government avision. back that commitment pollution requires strong leadershipandpolicy ofresource theintensity Reducing useand progresstracking avisionand Establishing c benefitscited The important a The increase The

d Biogas increasing use of renewables) to be effective, a For targets (suchasfor reducing GHGemissions, traffic congestioncosts. reduction inpollution-related healthburdens or share andthe products intotal market certified greenof new jobscreated, of eco- theproportion indicators couldinclude, for example, thenumber related socialprogress) are also needed. Such the intended outcomes ofgreen growth (and over time. thatmeasure Indicators eco-efficient whether economiesare becomingmore orless economic systems are neededto helptrack resource of indemonstrate use efficiency the To suchactions,indicators that support Climate Change(UNFCCC). the United NationsFramework Convention on commitments undertheKyoto Protocol of are to legallybindingmitigation notsubject development thatpolicies for low-carbon havecountries alsoestablishedstrategies and ambitious renewable energy targets). Several Islands, Fiji, Samoa, Tonga and Tuvalu (with Sustainable Singapore andCook Blueprint), green growth), Singapore (implementingthe ofKorea(implementinglow-carbonRepublic for neutrality); carbon (working Maldives Model), (developingthe 3Rs),Malaysia Economic aNew for SustainableDevelopment development oftheprivate sector. will requireLow-carbon the fullsupport The World Business Council infections.tract and thusalsoreduce theexposure ofwomen andchildren to healthimpacts,suchasupper respiratory and (d) managing landsustainably. oftotal technologies sectors; energy andpoliciesinnon-energy proportion used;(c) adoptingsupportive energy basedonincreasing sources energy renewable ofenergyensuring security andlow-carbon asa regulating energy demand, suchasthrough investments andinfrastructure;(b) inenergy efficiency to theUnited NationsFramework Convention onClimate Change(UNFCCC) secretariat include(a) development strategiesCommon thathave elementsoflow-carbon beenformally communicated carbon-intensive thaniscurrently thesituation. goals; andproviding accessto energy, housingandotherneeds—butbasedoneconomiesthatare less forchange work development. This reduction meanscontinuingeconomicgrowth; meetingpoverty relatedFor thatactions to shouldbeplacedonensuring climate developing countries, highpriority Box 3.11:Low-carbon development improved stoves canreduce cooking greenhouse gas(GHG) emissionsandofblackcarbon oflife. empowerment, andimproved andquality community For livelihood opportunities example, reducedinclude that operatingcosts,multiple co-benefits increasedgreater accesstoenergy services, theachievement ofdevelopment goalsthrough Climate mitigationgoalscandirectlysupport releases carbon (bypricing meansoftaxes ortradablepermits). development is for low-carbon Key achieving support. technologiescarbon requires andmarket policy c identifies a number of policy elements for engaging identifiesanumberofpolicy sector, the private a At thesametime, thecommercial andwidespread oflow- uptake strategies to achieve thetargets. recommend ways to monitor progress andadjust has to beraisedto independentlyidentifyand As well,intervals. ofstakeholders thecapacity andpromotingmonitoring progress atspecific which progress canbemeasured andthen necessary,that is, establishingabaselineagainst national system is andevaluation ofmonitoring action to reduceaction environmental pressure and (Box willsynergise 3.11).Suchaframework developmentincluding pursuinglow-carbon and sociallysustainableways 3.3), (Table directions of investment inmore environmentally will bedesigned to systematically influencethe growth willseekmore effective policies and An integrated for framework green policy what integration meansinpractice. development strategies, butithasbeenlessclear long beentouted ofsustainable asahallmark mutually reinforcing ways. Policy integration has integrated, andchanges in complementary green growth systemic strategies thatsupport decisions canonlybeaccomplishedby delivering insocialpreferencesShifts andininvestment frameworkpolicy Building anintegrated continued page. onnext

b

65 Greening Growth: Towards a Green Economy 66 Greening Growth: Towards a Green Economy and incentives. regulations and linked deploy complementary build synergies sectors, and linked between secure growth, address bothdemandandsupply, energy insome developing countries. energy, andmeettheneedto improve eliminate theneedfor support accessto price long-term modern incentiveSuch aprice to renewable energy investment producers would inrenewable generate further proposed generated to from applyaspecialpurchase for renewable price energy electricity sources.g coordinationinternational beingdiscussedisaglobal arrangement “feed-in tariff” programme, whichis are unabletodevelopment are behind. invest notleft Onesuchpotential directlyinlow-carbon lossesincompetitivenessdevelopment donotsuffer asaresult, that andthatcountries short-term cooperation isneededto ensure thatleadonthewayInternational inlow-carbon thatcountries thatarethe sectors to mostvulnerableto reduce action GHGemissions. products, measures coalandpetroleum are andchemicalproducts. neededto Complementary support power,electric reduced inothers, water and gas supply), such action productivity includingbasicmetal to reduce (mining, emissionsincreasedinseveral sectors productivity non-metallicmineralproducts, g f e d c b a Morehalf ofthepotential than forin developingreductions is such countries, for reducingThe opportunities emissionsatthelowest costsare fragmented across andregions. sectors workforce through appropriate educationinmathematics, scienceandengineering. ofawell-trained theavailability andensuring term; that may not becommercialized intheshort public research and sector private cooperation between institutions, especially for those technologies technologies cost-effective and avoiding technologies; governments selecting promotingdialogue and to ensure rights areturn onresearch themost determine property anddevelopment; lettingmarkets emissions;protecting intellectual and mitigate carbon sometechnology pricing development risks; thatgenerate frameworks confidencefor investment stablepolicy including settinginplacelong-term levels onemployment. ofoutput—and withlittleornoimpacts withhighemissionscanreduce ontheir some sectors withoutsignificant theirclimate impacts impacts benefit themosteconomically. ofKoreashows intheRepublic that Onestudyofarangeindustries probably besttargeted thatare atsectors responsible for highlevels ofGHGemissions, butthatmay Targeting isonestrategy. thelowest-costmitigationopportunities However, mitigationstrategies are incommercial vehicles,fuel efficiency andbuildinginsulation. losses, sugarcane invehicles, biofuel, water fuelefficiency heating, airconditioning, lightingsystems, include (inorder oftheirpotential for dioxide, GHGsotherthancarbon costsavings) industrial standby achieved whilesaving costs—at “negative dioxide ofcarbon equivalent.Suchopportunities cost’/ton and investment required ineachsector. across assessedthepotential,study ofmore 10sectors than200GHGabatement costs opportunities GHG emissionreductionscanbechannelledtowards meetingdevelopment goals. Acomprehensive R.H. Chun, K.H. Kim and K. Han, andK. Kim R.H.Chun,K.H. “Environmental regulation anditseffects oncompetitiveness: thecaseofKoreanindustries”, in World BusinessCouncil for Innovating SustainableDevelopment, forgreen growth: drivers ofprivate sector RD&D (Geneva,2011), Christa Clapp, Gregory Briner and Katia Karousakis, Karousakis, andKatia Briner Clapp, Christa Gregory A feed-in tariff is a special purchase price which is paid by electricity companies for electricity generated from companiesfor renewable energy Afeed-in electricity isaspecialpurchase whichispaidby tariff electricity price McKinsey andCompany, McKinsey Pathways to alow-carbon economy, Version 2oftheglobal greenhouse gas abatement -January cost curve Black carbon istheproductofincomplete to combustionoffossilcontributor Blackcarbon climate change fuels, andisanimportant McKinsey andCompany,McKinsey Pathways to alow-carboneconomy, Version 2oftheglobal greenhouse gas abatement-January cost curve R.K. ChungandE.Quah,eds., PursuingR.K. green growth and the Pacific inAsia (Singapore, Cengage Learning, 2010). emissions. fromimpacts humanactivity. fossil Usingtraditionalfuelsandburning fuelsinefficientlyare significant to contributors regional survey 2009: promoting planet savingthe development, survey generated from Affairs ofEconomic (DESA),World andSocial othersources. United economic See NationsDepartment andsocial sources asanincentive to renewable energy producers. paidfor higherthantheprice The purchase electricity istypically price wess/wess2009files/wess09/wess2009.pdf 2010. on3May accessed from www.wbcsd.org/plugins/DocSearch/details.asp?State=P&type=DocDet&ObjectId=MzkxNjA on2March 2011. 2009 2009 2011. 688B637A46568DB=lzRtMZabjr6TzdqTYoC5WvGKPNACAAAAHRKNBg==&bcsi_scan_filename=46553489.pdf on16February lessons (Paris, Energy Agency, International 2010),accessedfrom www.oecd.org/dataoecd/32/58/46553489.pdf?bcsi_scan_9 (New (New York), accessedfrom https://solutions.mckinsey.com/ClimateDesk/default.aspx on31August 2010. (New (New York), accessedfrom https://solutions.mckinsey.com/ClimateDesk/default.aspx on31August 2010. e The studyfound thatmany GHGabatement measures canbe Low-emission developmentstrategies (LEDS): technical, institutional andpolicy , (New , (New York, United Nations, 2009),accessedfrom www.un.org/esa/policy/

At amore basic level, the integration of potential for tensions. resolving policy critical cutting andintegrative tool with the policy reform,Eco-tax discussedearlier, cross- isakey f While thestudyfound that action d whereinvestments in Table 3.3:Greening growth: strategies, and investments policies, partners that, by their very nature,that, by create theirvery bothhigher- focusing investment inthoseeconomicsectors growth considerationscanalsobeachieved by environmental andeconomic sustainability development infrastructure Sustainable natural capital Investment in agriculture) sustainable (including and industries businesses markets, Greening Strategy • • • • • • • • • • • • • • • • • examples ofcountries where Land tax restoration renovation, ecological sprawl,urban eco-efficient forIncentives restricting development for sustainableinfrastructure Vision andmaster-planning Thailand) the Philippines, power production(Indonesia, Independent/decentralized (Singapore) incentives, restructuring price Energy andwater efficiency (Singapore) and water conservation Building codesfor energy fees, incentives for investment Ecological taxreform, green (agriculture)Eco-labelling (China, services Viet Nam) Payment for ecosystem of Korea) Republic responsibility (Japan, producerExtended Thailand) Japan, Indonesia, Feed-in tariffs (Australia, Thailand, Viet Nam) Russian Federation, Lanka, Sri Malaysia, China, Indonesia, programmes (Cambodia, Cleaner production financing Eco-innovation reformEco-tax investments Green technology ofKorea) Republic (Australia,Eco-labelling Japan, Philippines) ofKorea,the Republic Japan, Green procurement (China, Selected policiesand Selected implemented • • • • • • • • • • • • • • • • • jobs for eachunitofresource useare created Labour Organization (ILO) emphasize thatmore and resource use. UNEPandtheInternational thereductionofenergy jobsandsupport quality Local communities organizations Non-governmental Financial institutions Private sector contractors Architects, engineers, Universities planners and city Local governments Financial institutions Businesses Local governments utilities Water andpower groupsCommunity Financial institutions Private sector centres Clean technology institutes development Research and Businesses implementation partners • • • • • • • • • • • • • • • • development funds Community buildings Retrofitting of development transit Mass development Human capital technology energyRenewable Biophysical data awareness development and Enabling policy systems commercial farming Sustainable systems Organic farming Human capital Green technology development agency Innovation projects loansforSoft green parks Eco-industrial Cleaner production Life assessments cycle investment focus continued page. onnext 67 Greening Growth: Towards a Green Economy 68 Greening Growth: Towards a Green Economy to asvested suchfactors interests andinstitutional green growth, due reform actual canstillfallshort geared framework towardsEven withapolicy of growth Governance for thegreening by therenewable energy sector, for example. (water) can bebetter secured. economicinputandenvironmentalcritical asset supply anddemandsideissynergized sothata that provide water. this way, In onboth action invested inmaintainingandrestoring watersheds fees orinvestments from water utilitiescanbe whereuse coupledwithsupply-sideaction, water the form ofincentives for more efficient water achieved throughin bothdemand-sideaction For example, amore secure water supplycanbe ofecosystemalso beidentifiedinterms services. can andsupplylinkages consumption. Demand sustainable to bysupport action be supported on thegreening iscritical, butmust ofmarkets, policies. Formutually supportive example, action and through complementary to besupported have demand-andsupply-sideinterventions Both meet needsinanequitableway, orstiflinggrowth. resources withoutcompromisingto theability greater focus onmanaging thedemandfor than “end-of-pipe” solutions, andsorequires a Green growth seeksdemand-sidesolutions, rather environmental pressures. employment-creating growth andreducing needed to maximize thesynergies between that mightnotbeconsidered “green,” is action However, inalleconomicsectors, especiallythose consumption Sustainable instruments Cross-cutting • • • • • • • • of Korea) Republic responsibility (Japan, producerExtended thePhilippines)Japan, labelling (China, Indonesia, public disclosure andeco- tools,Information including Philippines) ofKorea,the Republic Green procurement (Japan, (Singapore)pricing Water andenergy, resource Human capital formation: skills development training Human capitalformation: skills Education for sustainabledevelopment markets theeconomicvalueofecosystems; resourceInternalizing ecosystem service pricing; reformEco-tax

63

• • • • • • Growth development strategy. the implementationofitsLow Green Carbon Commission onGreen Growth, whichhasguided of Korea’sPresidentialof a establishment level leadership, asshowcased by theRepublic oftheseishigh- Perhaps themostimportant consultation. transparency, and stakeholder accountability and agovernance environment thatfosters management), appropriate levels of funding sufficient humancapacity, soundpublicfinancial systems (for example, cross-sectoral coordination, managementand predictablepublicsector by politicalwillandleadership,backed strong andinstitutionalframeworks,legal, regulatory governance andmanagementrequires strong limitations. Overcoming thesechallengesof roles. Possible cooperation inter-agency overlaps inauthority, operational in andambiguity environmental agenciesshouldaddress gapsand coordinating with otheragencies,In cooperationmechanismsinplace. agency responsibilities resources, and inter- clear with entities mustallhave definedmandates, clearly land-use planningandtransportation. These and safety, naturalresources management, and economicdevelopment, energy, health such asthoserelated to agriculture, industrial require theengagementofseveral lineministries, planning. will frameworks Integrated policy of environment offinanceand andministries level coordination ministries isneeded between development bebroad-based.capacity High- to improveefforts institutionaldevelopment and The focus policiesrequires oncross-cutting that Financial institutions Local governments public General Universities Farmers Private sector • • • awareness environmental Education and Eco-labelling management Demand-side 64 important that specific measures are putinplaceimportant may notbeequallydistributed. Thus, itwillbe term. The costsandbenefitsofsomemeasures create winnersandlosers, especiallyintheshort As stressed earlier, atransitionto green growth will are needed(Boxperformance, 3.12). and publicdisclosure offirms’ environmental schemesindustries, includingeco-labelling information tools thatalsodirectlytarget specific region are originating inschools. At thesametime, grass-rootsmany initiatives important across the development remains abasic requirement and production behaviour. Education for sustainable inconsumptionandto encourageshifts more oncommunicationwithstakeholders Furthermore, greening ofgrowth willrely far the benefits, shared. befairly aswell asallocated andthattheburdens ofrisk, means thatresources mustbeappropriately viewpoints. increasinglyshould evaluated be from multiple of amultitudestakeholders. Thus, policies dealing withthe values, ambitionsandgoals willmeanbuilding integrated frameworks policy addition,recalibrating theeconomyIn and committees ortaskforces. joint research programmes andmulti-agency that establishclearcoordination procedures, agreementsmechanisms canincludeinteragency Research Working Paper D.C., (2011)No. 555(Washington, World Bank). disclosure ofissues andrecommendations inEast Asian programs:basedonexperiences countries”, asummary World BankPolicy Source: E.G.Gozun, B. Laplante andH. Wang, ratingandpublic “Design andimplementation ofenvironmental performance disclosed thenamesofmore in2008. than700enterprises an Ecowatch implementing active System andratedand particularly hasbeen Authority Development No.51, followed by anamendmentofitsimplementationguidelines inAugust 2003. The LagunaLake EcowatchEPRD programme System, named the Industrial under the department’s Administrative Order The Philippines. ofEnvironment and NaturalResources implementedThe Department in1998itsown into acomprehensive ofafirm’s ratingofallaspects environmental across multiplemedia. performance, targetedhas evolved water solely the programmepollution. Since 2002,PROPER in was re-launched stoppedimplementation, untilitwastemporarily in1998asaresult ofthefinancialcrisis, theprogramme Programme isgenerally recognized (PROPER) asapioneerEPRDprogramme itsinitial phaseof inAsia. In in1995,Indonesia’sIndonesia. Initiated Programme for Pollution Control Evaluation andRating 2008. As of5June2008,theJiangsuprovincial EPRDprogramme alonecovered 14,957firms. adopted Decree No.Environmental35 on Disclosure, Information which becameeffective 1 May on 2007, China’s 11 April 2005. On municipalities in State Environmental Protection Administration (SEPA) as green watch programmes, were firstpiloted municipalities, in2000two andwere expandedto 22 ratingandpublicdisclosureChina. Environmental (EPRD)programmes, performance informally known environmentalBox 3.12:Selected andpublicdisclosure performance schemes

Better “transition management” Better “transition standards andregulations, and(g)effective strengthened sustainable development, (f) progress(e) indicesfor new tracking towards inlaw,explicit recognition ofecosystem services capacities, rights, (d) (c) strengthened property andimplementationthe gapsinknowledge sustainable directions, (b)institutionsthatbridge inmore decision-making public andprivate fundingaswellincentives as aimedatshifting are: (a)fiscalreformsupport and economic areas thatneedbetter institutionalandlegislative ofgovernance. aspects Amongthekey on certain Finally, there isalsoneedfor amore specificfocus by climate change. conditions, suchascatastrophic incidentscaused in thefaceofunforeseen changesanduncertain andalsoto andgrow self-organize disturbances of societiesandeconomiesto resist shocksand in Chapter 5,resilience focuses onthecapacity islikely.unpredictable andsurprise As discussed changing environments where the future is to sustainingdevelopment inimportance governance” approaches thatgive increased willrequirethe projected impacts “adaptive of ecosystems, andthepotential scaleof thedegradationchanges beingobserved, At thesametime, theextensiveenvironmental on themostvulnerable, especiallythepoor. to counter-balance thepotential negative effects 69 Greening Growth: Towards a Green Economy 70 Greening Growth: Towards a Green Economy in Asia. by50 millionwouldabout 2030, ofwhich be green jobscouldreach 100millionworldwide ILO estimates thattheprojected numberof policymakers. featuresthe mostattractive ofgreen growth for projected jobcreation benefitsofnew are oneof itdown tobrings levels thatare sustainable.” their environmental andultimately impact andactivities,whichreduceseconomic sectors refers to directemployment created“the in to succeedina “green” place. market “Green jobs” needed jobs, alongwiththedevelopment ofskills isthecreation objectives green ofnew equity environmental between area and ofinterface environmental goalsare carefully designed. One simultaneously whenreforms to achieve canonlybeachieved objectives and equity in thepursuitofgreen growth. Environmental winners andlosers, andthiswillbenodifferent any economictransformation,In there willbe fair transition creating winnersandensuringa Human capitalformation, opening up opportunities for green new opening upopportunities jobs laws andregulations. andenforcementmonitoring ofenvironmental 15 February 2011. accessed from www.unep.org/labour_environment/PDFs/Greenjobs/UNEP-Green-Jobs-Towards-Sustainable-Summary.pdf on Source: United Environment Nations Programme, Green jobs:towards decent work inasustainable, low-carbonworld (Nairobi, 2008), a reduce theenergy oftheeconomy. intensity to upfor to efforts expected make theclosureofcountry’s ofenergy-intensive aspart industries globally, inwindpower, particularly solarwater heatingandsmallhydropower. These jobscanbe Term Plan Development for Energy Renewable of2007.Consequently, aleading position Chinaistaking total energy consumptionby 2010anda15percentshare andLong- by 2020;and(bi)theMedium- EnergyRenewable Law of2005,whichtargets a10percentrenewable energy share inthecountry’s China’s have grown anditsdomesticmarket renewable significantly energy asaresult industry of(a)the thatareCountries focusing ondeveloping anddeploying renewable energy standto benefitenormously. refining andpower production. generation),whichhasbeensheddingjobsdespite rising energy sector, more (mining, thanthecurrent jobsinthefossil petroleum energy extraction, industry again to $630billionby 2030. These projectionscouldtranslate into 20millionjobsintherenewable Global investment inrenewable energy to isexpected reach $343billion in2020andto almostdouble Box 3.13:Green jobspotential inrenewable energy As defined by the International LabourOrganization, As definedby theInternational “decent work” lives. It sumsuptheaspirations ofpeopleintheirworking organize and participate in decisions that affect their lives and equality of opportunity andtreatment for allwomen andmen. indecisions thataffectofopportunity organize theirlives andequality andparticipate for families, better prospectsfor personaldevelopment andsocialintegration, freedom for peopleto express theirconcerns, andsocial protection forinvolves thatisproductive work intheworkplace anddelivers opportunities a fairincome, security 65 Renewable energy, Renewable inparticular, is The The informal. School curricula and skills trainingneed informal. andskills curricula School development isessentialatalllevels, formal and jobcreation. Education forsupport sustainable toqualified entrepreneursworkers andskilled programmesrequire forand skills education jobs. However, long-term green growth prospects candoagreatPublic policy dealto foster green located closeto the fossil fuelresources. jobs inminingandproduction,whichtend to be may bebetter suited to women thanexisting and (e) “local” jobsinthegreen growth industry employ more thanenergy-producing companies; (for will example, offering energy conservation) industry (d)and gas industries; the energy service large conglomerates now engagedinthecoal, oil smallerpower plants)than would thesupport from hydropower,(apart renewable resources will ingreen more to growth participate likely industry would (c) be smallerenterprises in transportation; available locally, whichmay reduce employment many (b)renewable otherindustries; resources are jobs,eliminate asishappeningin low-skilled instance, technologies advanced useof (a) may ofemploymentbut patterns couldchange. For capital-intensive asthepresent fossil fuelindustry, toOverall, thegreen beas islikely growth industry jobs incomingdecades. may lose fossil asthe substitution, fuelindustry that jobcreation theform willlargely ofjob take (Box 3.13).However, mustconsider policymakers a such as micro- andagricultural insurance.such asmicro- level,that addressatthecommunity vulnerability areas; providing cashtransfers; and/orschemes inthepoorest ruralandurban health services or eliminatingusercharges for educationand reducing gradually predictably; and shifts tax affected resource by rising costs;phasingin to companiesandconsumersmostdirectly measuresmight includerebating revenue new to helpthemostvulnerablegroups. Specific include socialassistanceandwelfare programmes aninclusiveEnsuring transitionshouldalso climate change, andfishers. suchasfarmers benefit thepeoplemostdirectlyaffected by 3.0 percentfor adults. unemployment is14.2percentcompared to groups, Asia, South-East youth especiallyyouth. In green growth shouldalsotarget othervulnerable reduction efforts.Humancapitalformation for help closethegendergapandimprove poverty now intheinformal sector, trainingwill inskills training. Targeting those women, particularly to fillthegendergapthrough targeted skills by green growth alsopresent opportunities informal jobs. created The jobopportunities new predominating invulnerableand, especially, gender gapineconomicactivity, withwomen into accountthepresentshould alsotake by inclusive policiesA fairtransitionsupported health andsafety, mustbeaddressed. justice andlabourrights, includingoccupational andtradeunions. Socialgovernment, industry must bebasedonsocialdialoguebetween andbenefits, and forms and various ofsupport affected by joblosseswithaccessto retraining economy willprovidea low-carbon workers towards oftheshift insupport and enterprises The ILO stresses thata “just transition” for workers labour.demands for skilled to berapidlyscaled-upto meettheemerging must beseenasanimperative. impede theregion’s to agreen shift economy Overcoming theconstraintsandbottlenecksthat oftheplanet’sthe largest proportion population. dominant economicforce andalready contains planet. The region israpidlybecomingtheworld’s for thefutureimportant oftheregion andthe few decadesare thenext during critically make The choicesthatAsian andPacific countries Conclusions 66 Transitions shouldalso and participation in society—in additionto the insociety—in and participation livingenvironment;quality familyrelationships; resources; health;education;decentjobs;a disadvantaged groups; sustainable useofnatural for all,and accessto including basicservices reduction ofgrowth—poverty on thequality to “go italone.” Emphasisneedsto beplaced has achieved thisby itself, orcanbeexpected paradigmmajor economic changes.No country leadership isneeded. Green growth represents strategya well-thought-out confident and More fundamentally, by aclear vision backed that jobscreated are safe andrewarding. to ensure mustbetaken also bedecent—care workers’ rights. Green jobs, by definition,must adequate wages, conditions and safe working However, notallenvironment-related jobsoffer assisted through retraining andcompensation. lose environmentally damaging jobsneedto be the transitionto agreen economy, peoplewho reform. ofeco-tax Inespecially inthecontext measures areThus, critical, complementary internalized, energy increase. andotherprices it; for example, asecological costsare that thepoorwillpay for to promote actions implementing green growth istheperception One ofthemostdifficultchallengesto of society, training. from schoolsto on-the-job development to needsto alllevels beextended demand for green jobs. Education for sustainable andcapacitiesto meettheburgeoningskills needs to bebuiltonreoriented valuesandnew solutions willbeneeded. The green economy to createefforts awareness oftheissuesand changes. Political leadershipandstrengthened challenges facedwillnecessitate fundamental environmental governance, thescaleof needs to beimproved through enhanced challenges faced. While environmental quality The publicisincreasingly aware ofthesustainability green growth. regional to thesuccessof cooperationiscritical by governments—international andjoint action competitiveness canonlybedispelledthrough economicburdensnew anddecliningcost- a green economy. Fears aboutcreating for instrumentsiscritical buildingother policy reformeconomic valuesthrough eco-tax and signals to price internalize and structure price Changing the action. the publicintaking are neededtoand sector engagetheprivate financingapproachesNew andincentives

71 Greening Growth: Towards a Green Economy 72 Greening Growth: Towards a Green Economy accept andfoster thechanges. the changes, alongwithapopulacewillingto in to bring benecessary will leadership political debates. Ultimately,policy however, visionand solutions, areall sectoralneeded in workable are engagedinframingwhere allparties processes,development. Multi-stakeholder stepwise transitiontowardsnecessary sustainable to achieve the inconcert policies thatwillact aconsistentto setof loseisessentialincrafting status quo. Recognizing whostandsto winand are by impeded vested often interests the in approaches identifiedinthisreport The policy economy technologies. become agloballeaderinmany promising green challenges, buttheAsian andPacific region can that willtransform economiesandsolve allthe a panacea. There isno “silver bullet” technology Technology canfacilitate green growth, butisnot women.disadvantaged groups, particularly for all,and accessto including basicservices reductionneeds to beplacedonpoverty particular,disadvantaged people. In emphasis that resources are usedto benefitthemost ofgrowthQuality alsowillincreasingly mean being, suchasGDPpercapita. incomplete present measures ofhumanwell- development are gradually beingattained. ensure thatstepping stones towards sustainable matched by goals, medium-term are toneeded hugechallenges.surmounting Long-term visions, few decadesinAsianext andthePacific willentail transformations the neededduring structural and well-being for allcitizens. Achieving the green jobs, andanimproved oflife quality forby tremendousgreen opportunities growth, These constraintsandbottlenecksare balanced Introduction Introduction individual and collective action. individual andcollective through structuresandprocesses thatshape refers to shares theways inwhichasociety power, social andenvironmental domains. Governance regional andnationallevels covering economic, governance hasbeencreated attheglobal, several centuries, acomplexstructureofOver and asunderstandinghasincreased aboutthe havecountries exploited theirnaturalresources Environmental governance hasevolved as andcivilsociety. sector the private from ofmany theinteractions actors, including oftheState; italsoemerges not thesolepurview CHAPTER 4: GOVERNANCE FOR SUSTAINABLE a Change (IPCC). throughmakers thefour oftheIntergovernmental Panel extensiveandrigorous reports onClimate pointistheemerging scientificconsensusbrought complex, butthestarting tothe attention ofpolicy stem from anunprecedented level ofawareness anddialogue. The reasons for thisare multipleand andtheeconomy asclimatesociety change. The governance changesassociated withclimate change Few environmental issueshave ongovernance, hadsuchanimpact governmentsof andallsectors Box 4.1:Climate change:from andmainstreaming science to policy of theProcesses andProcedures of theIPCC (Amsterdam, Committee theIPCC, to Review InterAcademy Council, 2010). of IPCC’s assessmentprocess, findingsremain unaffected. thekey InterAcademy See Council, Review Climate Change Assessments: whomaderecommendationsby for independentexperts, improvement aspects butfound that,whatever thefailingsincertain green sectors. and renewable energy, andhashelpedstimulate economicgrowth andjobcreation inanumberof Climate changehasalsocatalysedresearch andinvestment into suchareas asenergy efficiency national councilsonclimate change, which are located often atthehighestlevels ofgovernment. plansforaction climate change, orrestructured new dealingwithclimate change, ministries and mainstreaming ofclimate changeinto development plans, climate proofing ofinfrastructure, national andrights, agricultureequity andecosystems. Cross-sectoral coordination isincreasingly seeninthe integration andaccess, ofmany poverty, issues, suchas energy conservation production, biodiversity This awareness hasgenerated widespread pressure for change andhasforced and therethinking their strategic planning. andgovernmentshigh) to atalllevels, corporations many ofwhich have theissueinto incorporated to ofstakeholders,from be wide spectrum the poorest isknown communities (whose vulnerability Despiterecent questions, theIntergovernmental Panel have onClimateprocess Change(IPCC) withstood and reports scrutiny a Concerns aboutpotential Concerns have climate changeimpacts alsofound resonance witha DEVELOPMENT 1 Governanceis growth andgreen economy inthecontext governance relating to theenvironment, green There isnow agrowing discoursearound and challengeofeffective governance. space andpurpose, addingto thecomplexity stakeholders, from globalto local, hasfound governance mechanisms. Awiderangeofnew multilateral agreements, andfunding has beenaproliferation ofpolitical statements, growth andgreen economy. there thiscontext, In including sustainabledevelopment, green of concepts, approaches andmechanisms, creation institutionsandthedevelopment of new challenges. This evolution hasresulted inthe ofresultingscale andcomplexity environmental

73 Governance for Sustainable Development 74 Governance for Sustainable Development economic andpoliticalrealities. andthechanginginstitutions andarrangements world. current Agapexists between international and increasingly interconnected andcomplex pace witharapidlychangingenough to keep to adaptand evolve policiesandinstitutionsfast Global governance generallyissaidto have failed Current challenges levelGlobal governance has beenunderreview inlightofthecontinued environmentalof international governance (IEG) national level, andviceversa. implementationatthegovernance andpolicy at thegloballevel areto good closelylinked asgovernance improvementsalso beimportant, from globalto locallevels will linkages vertical environmental domains. Establishingcloser previously economic, disconnected socialand cooperation, coordination andintegration across must increasinglyarrangements promote food, fuelandwater) implythatgovernance convergingbetween challenges(for example, development inAsia andthePacific. The linkages to strengthen inclusive and sustainable resilience opportunity canprovide animportant Governance strategies that buildsocio-economic sustainable development. tocontributed of lackofimplementation the environmental, economicand socialissues has integration strategies between to address no economicvalueorcost.Further, alackof owned by nooneandmosthaving littleor traditionally been viewed asfree public goods, and well-being, environmental resources have environment isprerequisite for allhumanactivity over environmental issues. Although ahealthy direct effectsprecedence onpeople, take often issues, whichare associated with mostclearly the locallevel. For instance, economicandsocial the environmental agendafrom theglobalto However, somefundamentalconstraintsface domain(Boxmainstreamed 4.1). into thepolicy climate changescienceisincreasingly being climate changeissuestillposesmany challenges, ways.change innew For example, althoughthe and address themaindriversofenvironmental stock ofsuccessesandfailures ingovernance for to take theglobalcommunity opportunity of sustainabledevelopment, whichoffers an 2 The effectiveness The • • • ofIEG The shortcomings • sustainable development, namely: for strengthening the environmental pillar of system and anumberofinstitutionaloptions responses to thechallengesofcurrent ofsystem-wide number a hasidentified IEG The extensive consultative process to improve Outlook and address environmental degradation. initiatives to promote sustainabledevelopment capital, despite continuinginvestments and environment ofthe deterioration natural and and individuals. organizations, civilsociety, otherstakeholders intergovernmental andnon-governmental sector,private community, thescientific financialinstitutions(IFIs),theinternational players key includearrangements. Other (MEAs), and associated implementation including multilateral environmental agreements The United Nationssystem isatthecentre ofIEG, a plethoraoffunds. approaches, whichisillustrated by thecreation of There andfinance isalso anonalignment ofpolicy and placesaconsiderableburden oncountries. countries. This results costs inhightransaction their associated secretariats located indifferent of whichapproximately 323are regional mandate. There are alsonow more than500MEAs Nations institutions with an environmental This is illustrated by themore than40United overlapping approach to environmental issues. uncoordinated, withapiecemealandsometimes fragmented viewedas also is structure and controls. compliance and finance The governance development, includingalackofadequate economic andsocialpillarsofsustainable uptheestablished institutionsthatmake institutions thanthemore mature andlonger-

Commission and onSustainableDevelopment; Counciland Social andtheUnited Nations Reforming theUnited NationsEconomic world environmentworld organization (WEO); Establishing aspecialized agency, suchasa sustainable development; umbrellaEstablishing anew organization for Programme (UNEP); Enhancing theUnited NationsEnvironment 5 6, 7 includeweaker 10, 11 3,

8, 4

9 and Sustainable Development (UNCSDorRio+20). Sustainable Development the upcomingUnited NationsConference on processesdevelopment for inthepreparatory ofthebroader ofsustainable framework part The IEGproposals have beenconsidered as • an opportunity to review thegovernancean opportunity alsopresentsdevelopment, includingIEG.It governancefor of sustainableshortcomings to address thean unprecedented opportunity presents majorthemesofRio+20 one ofthetwo for sustainabledevelopment (IFSD)(Box 4.3)as The considerationoftheinstitutionalframework

that DepletetheOzoneLayer generally considered is to most successfulMEAsof the be one ting multilateralenvironmental agreement (MEA)commitments. The Montreal Protocol onSubstances There hasbeenrecent progress inaddressing faceinimplemen- governance challengesthatcountries Box to improve 4.2:Efforts theeffectiveness ofmultilateral environmental agreements national levels. inthenegotiationofMEAs andto to implementthemattheregional participate countries and ofdeveloping to enhancethecapacity (UNCCD) andother partners GlobalMechanism Desertification Food andAgriculture Organization oftheUnited Nations (FAO)/United NationsConvention to Combat andPacificCaribbean (ACP) group ofcountries, theUnited NationsEnvironment Programme (UNEP),the Building capacity forMEAimplementation: The European Commission hasjoinedforces withtheAfrican, conventions alonewould save upto $765,000ayear. industry has developed based on the destruction and replacement of ozone-depleting substances. andreplacement hasdeveloped basedonthedestruction ofozone-depleting industry Protocol canberegarded asanexampleofMEAs promoting asanentire green economicactivity of theseMEAs. environmental governance shortcomings. There hasbeenrecent progress inpursuingjointmanagement in International Trade, Convention andtheStockholm onPersistent Organic Pollutants) isaresponse to Convention onthePrior Consent Procedure Informed Hazardous for ChemicalsandPesticidesCertain the Control of Transboundary Movements ofHazardous Wastes andtheirDisposal, theRotterdam Clustering the chemical MEAs: The ofthechemical-related clustering MEAs (theBaselConvention on globalinitiatives to improveOther themanagement and implementation of MEAs includethefollowing: and a sense of common commitment and equity areand asenseofcommoncommitmentequity considered equallyimportant. incentives for compliance, readily available alternative chemicals, fundingfor lessdeveloped countries other things, theMultilateral Fund, driverofsuccess. whichisconsidered Provisions akey thatcreate through, among legally bindinglimitsandequitabletreatmentit hasstrong ofparties science-based, Customs Organization. andthe (UNODC) onDrugsandCrime World theUnited NationsOffice Chemical Weapons (OPCW), ProtocolCartagena onBiosafety. theOrganizationPartners includeInterpol, for theProhibition of conventions, theConvention ontheInternational Trade inEndangered Species(CITES) andthe of conventions andMEAs, includingtheMontreal Protocol, theBasel, Rotterdam andStockholm to understandtradeprovisions relating to environmentally sensitive commoditiescovered by anumber The Green Customs Initiative (GCI) canbepursued. parties biodiversity-related MEAs cluster, may beanext where more to the systematic andeffective support implementation ofMEAs (Box 4.2). initiatives to improve theeffectiveness and lining existingstructures. for See examplesome Enhancing institutionalreforms andstream- d Ananalysisindicated thatcoordinated administrativeamongthethree arrangements f is aglobalprogramme ofcustoms to personnel enhancethecapacity 12

e Enhancingcooperationandcoordination among strengthen UNEP. alsohighlighted theneedto Message Solo Council.”of aSustainableDevelopment The toSustainable Development, theestablishment and reviewing therole oftheCommission for from anenhancedmandate for theECOSOC integration were discussedinSolo, “ranging level.the international Optionsfor enhanced for anorganization to enhanceintegration at together.work alsohighlighted theneed It that economic, socialandenvironmental pillars theneedtoto ensure 21July2011,underlined Dialogue onIFSD, from19 heldinSolo, Indonesia issuedby theHigh-Level Message The Solo them. between as well asthelinkages oftheeconomicandsocialpillars shortcomings 13 continued page. onnext b The Montreal a because c

75 Governance for Sustainable Development 76 Governance for Sustainable Development which states that, “potentially dangerous approach inPrinciple Declaration, 15oftheRio Protocolin theCartagena oftheprecautionary evidence. not maintainedwithoutsufficientscientific andismust bebasedonscientificprinciples the regime, measureWTO any trade-restricting Protocoland theCartagena onBiosafety. In the between World Trade Organization (WTO) principlesOne exampleistheconflicting the others. regime sometimesoffsetting theeffectiveness of other’s integrity, withmeasures enhancingone finance regimesand trade may compromise each sustainable development. Currently, environment, atransition to greenersupporting growth and governance oftradefacesspecificchallengesin ofincreasingis alsothesubject discussion,as tradeandtheenvironment between The interface – ASynthesis forPolicy Makers (Nairobi, 2011). 25 ConventionsRotterdam andStockholm onenhancingcooperationandcoordination (ExCOPs) were withthe heldinconjunction Conferencesthe of Basel, Conventions.Meetings Rotterdam andStockholm of theParties toBasel,the Extraordinary Simultaneous g f e d c b a inthisarea work relating toAustralia thePacific. hasalsoundertaken secretariats, regional theASEANSecretariat, organizations andmember States. The Governmentof AsianSoutheast Nations(ASEAN) subregion ledto renewed callsfor inthisarea action to convention Species (CMS), AEWAon Migratory Asia and thePacific, andIOSEA.In aworkshop intheAssociation of ofUnderstanding(IOSEA)wasdeveloped, forMemorandum aswell asajointreport theConvention Eurasian Waterbird Agreement (AEWA) Asian Marine Ocean–South-East andtheIndian Turtle forreports theConvention Convention, onBiological (CBD), Diversity CITES,theRamsar theAfrican- streamlining withafocus nationalreporting, onthebiodiversity-related MEAs. for Aframework core Harmonization ofMEAreporting: opportunity. opportunity. longer-term adjustmentsingovernance mechanismsshouldbeaddressed possible attheearliest thathave project-basedA numberoftheseinitiatives areactivities limitations. short-term, Therefore, reporting/#about website on14Februaryreporting/#about 2011. related multilateral environmental agreements Box 4.2 – ASynthesis forPolicy Makers (Nairobi, 2011). (New (New York, 2011),accessedfrom www.basel.int/synergies/success_stories.pdf 2011. on12May (GCI), in outcomes.pdf on7August 2010. conventions, Bali,22-24February 2010(UNEP/FAO/BC/RC/SC,2010), accessedfrom http://excops.unep.ch/outcomes/excops- Environment Programme, Simultaneous extraordinary meetingsoftheConferences to oftheParties theBasel, Rotterdam andStockholm to implementsynergies,other stakeholders includingby strengthening nationalprocesses ormechanisms. United See Nations technology andresource andprogrammes, mobilization),andjointactivities aswell ascoordinated by Parties and activities andjointmanagement(includingfinancial, legal,The information, outcomes includeddecisionsonjointservices information ch/outcomes/excops-outcomes.pdf on7August 2010. Rotterdamconventions andStockholm , Bali,22-24 February 2010 (UNEP/FAO/BC/RC/SC,2010), accessedfrom http://excops.unep. United Nations, Combating illegaltradeinhazardous chemicalsandwastes: cooperationthrough theGreen Customs Initiative United NationsEnvironment Programme, Towards aGreen Pathways Economy: Reduction andPoverty to Sustainable Development United NationsEnvironment Programme, Towards aGreen Pathways Economy: Reduction andPoverty to Sustainable Development UnitedEnvironmentNations Programme, Parties agreed to establishanAd HocJoint GroupWorking (AHJWG) onEnhancingCooperation andCoordination Amongthe United NationsEnvironment Programme, Vital Ozone Graphics 2.0 Climate Link(Nairobi, 2009). GovernmentofAustralia Pacific andSouth Regional Environment Programme, to thebiodiversity- Streamlined reporting th sessionofUNEP’s Environment GoverningCouncil/Global Ministerial Forum inFebruary 2010. (GC/GMEF) inBali,Indonesia continued Synergies Success Stories. Enhancing cooperation and coordination among theBasel, Rotterdam Conventions andStockholm 14 with the reaffirmationThis conflicts Work hasbeenunderway to by reduce theburden onMEAparties (Canberra, 2010),accessedfrom www.environment.gov.au/about/international/ Simultaneous extraordinary meetings of theConferences to ofthe Parties theBasel, IFIs, suchastheAsian Bank(ADB) Development serious serious before canbescientificallyproven they to cause orprohibited canberestricted activities even financial support ofdeveloping countries financial support Fund, theGreen Climate Fund for long-term Global Environment Facility (GEF), theAdaptation investments adifference. are alsomaking The sourcesOld andnew offundingfor environmental protectionism” (Box 4.4). that agreen economy may result in “green especially amongdeveloping countries, is has emergedthat Another concern recently, optionsforbest available eachregime. policy thecooperation andidentify understanding and fromstakeholders theseregimes to improve could beto encouragedialoguebetween One initialoptionto address suchcontradiction damage.” g 15, 16

17 and

, Johannesburg, 26August-4Sustainable Development Africa, South September 2002,A/CONF.199/20 (New York, 2002). environmentalgovernance/IssuesBriefsontheInstitutionalFramework/tabid/54126/Default.aspx on14June2011. ofsustainabledevelopment (IFSD),Issuethe institutionalframework Brief No. 1(Nairobi, 2011),accessedfrom www.unep.org/ w=article&id=154:secretary-generals-report-on-objectives-and-themes&catid=72:preparatory-committees&Itemid=123 General (A/CONF.216/7the Secretary New York, 2011),accessed from www.uncsd2012.org/index.php?option=com_content&vie • environmentalgovernance/IssuesBriefsontheInstitutionalFramework/tabid/54126/Default.aspx on14June2011. ofsustainabledevelopment (IFSD),Issue Briefthe institutionalframework No. 1(Nairobi, 2011),accessedfrom www.unep.org/ implementation activities” atlocal, national, regional levels. andinternational less formal bodies, or organizations, thatare andarrangements involved making networks inpolicy forThe institutionalframework sustainabledevelopment (IFSD) “covers offormal and aspectrum Box 4.3: a h g f e d c b , Johannesburg, 26August-4Sustainable Development Africa, South September 2002,A/CONF.199/20 (New York, 2002). w=article&id=154:secretary-generals-report-on-objectives-and-themes&catid=72:preparatory-committees&Itemid=123 General (A/CONF.216/7the Secretary New York, 2011),accessedfrom www.uncsd2012.org/index.php?option=com_content&vie institutional arrangements.” at thenational, subregional, regional levels, andinternational includingintheUnited Nationssystem of“The withtheobjective arrangements overall integration ofenvironment anddevelopment issues sustainable development didnotexist.Chapter 38ofAgenda institutional 21setouttheinternational recognized thattheeffectiveto considered theimplementationof institutionalarrangements key Conference onEnvironment deJaneiro, (UNCED),heldinRio andDevelopment Brazil, in1992,participants implementation ofAgenda 21. for componentsoftheinstitutional arrangements are sustainabledevelopment and regional key United Nationsregional commissions, andotherregional andsubregional institutionsandbodies • • w=article&id=154:secretary-generals-report-on-objectives-and-themes&catid=72:preparatory-committees&Itemid=123 General (A/CONF.216/7the Secretary New York, 2011),accessed from www.uncsd2012.org/index.php?option=com_content&vie www.un.org/esa/dsd/agenda21/res_agenda21_38.shtml Agenda 21. theleadwithrespecttoThe Commission theinvolvement hasalsotaken ofmajorgroups. isthehigh-levelDevelopment bodyresponsible for thereview andfollow-up to theimplementationof mandate to integrate thethree pillarsofsustainabledevelopment; andtheCommission onSustainable for legislative outcomes onsustainabledevelopment; Council theEconomic andSocial hastheoverall social dimensionsofsustainabledevelopment. The United Assembly NationsGeneral istheapexbody At thegloballevel, institutionsspecializingintheenvironmental, theIFSD comprises economicand Governance ofthethree pillarsofsustainabledevelopment involves anumberofinstitutions, including: presented IFSD and further definedinternational,presented regional IFSDandfurther andnationalroles andresponsibilities. United Assembly, NationsGeneral andthemesof theUnited Objectives NationsConference, onSustainable Development United Nations, “Plan of implementationthe World SummitonSustainableDevelopment”, ofthe World Summit on inReport United Assembly, NationsGeneral andthemes Objectives oftheUnited NationsConference, onSustainable Development United NationsEnvironment Programme, ofenvironmental pillarto IFSD”,“Importance in The environmental dimensionof United Nations, “Planthe of implementation WorldSustainable Development”, Summiton in United Assembly, NationsGeneral andthemesoftheUnited Objectives NationsConference, onSustainable Development United NationsEnvironment Programme, ofenvironmental pillarto IFSD”,“Importance in The environmental dimensionof United Nations, IV, Agenda (New 21,Section Arrangements Institutional Chapter 38,International York, 1992),accessedfrom such astheAdaptation Fund for theKyoto Protocol; MEAs andassociated financialmechanisms, notablytheGlobalEnvironment Facility (GEF) andothers, For theenvironmental dimension:theUnited NationsEnvironment Programme (UNEP),thenumerous Melinda Gates Foundation). Gates Melinda (United NationsChildren’sand Immunization Fund [UNICEF], WHO, World BankandtheBill Nations Programme suchastheGlobalAlliancefor on HIV/AIDS(UNAIDS),andpartnerships Vaccines Council institutions, theUnited andnew United NationsHumanRights suchastheJoint (WHO), For LabourOrganization (ILO), thesocial dimension: theInternational the World HealthOrganization development banks;and Fund Monetary (IMF),the International Bank, World andthemultilateral Trade Organization (WTO) For financial andtradeorganizations, theeconomic dimension:international suchasthe World The framework Institutional for sustainabledevelopment b Subsequently, formally (JPOI) theJohannesburg Plan ofImplementation h f, g f,

a At the1992United Nations Report ofthe World SummitonReport Report of Report Report of Report Report of Report c

d e

77 Governance for Sustainable Development 78 Governance for Sustainable Development and national and international policy reforms. policy and nationalinternational public policy, innovative financingmechanisms of investmentwould require politicalwill, smart levels chance ofsuccess. Achieving thenecessary financing mechanism to increase the supporting This exampleshows thatany initiative needs a for theCDM. themarket starting development, andwasinstrumental injump- emission reductionswhilepromoting sustainable for project-basedthe market greenhouse gas under theKyoto Protocol. This fundpioneered (CDM) Mechanism the CleanDevelopment the Prototype Fund, Carbon whichsupports over adecade ago, the World Bankestablished and development governance. For example, and the environment areWorld supporting Bank, countries asabasisforcountries assessingsuchatax. content ofgoodsproduced thecarbon regarding ofmeasuring inforeignvalid concerns thepracticality

a emission standards andotherregulations willaffect competitiveness feared to theextent border taxorborder adjustmentsto level carbon theplaying fieldinthisregard. There are doubtsthat lower emissionandotherenvironmental standards. have indeveloped countries Enterprises calledfor produced withrelatively incountries competitive may becomelessprice thanimports markets country standards andotherregulations canraiseproductioncosts. As aresult, goodsproduced indeveloped- The fear oflosscompetitiveness isalsopresent indeveloped countries, where domesticemissions role. play animportant eco-labels where standards markets ingrowing and export advantageoftradeopportunities cantake so thatthey producers.by developing country intheseareas capacity There isaneedto builddeveloping country of green markets protectionism. to Standards accessinglucrative export canbeusedastradebarriers tools forpowerful greening theeconomy, are butthey alsofrequently inthecontext cited asaconcern addressing legitimate environmental goals. are standards andeco-labelling ormandatory Voluntary Green protectionism istheuseofmeasures for protectionist endsimplemented undertheguiseof Box 4.4:Green protectionism d c b trade liberalization,allofwhichcouldhelpstimulate more efficientandsustainableproduction. onenvironmentalremoval andagricultural subsidies, barriers offisheries non-tariff goods andservices, Committee on Trade andEnvironment. whichhave beensubmitted goodsandservices, to the friendly World Trade Organization (WTO) isaboutproposals andenvironment-Another concern for climate- liberalizingthetradeofselected in anincreasingly “carbon-constrained” market. provided byput inplaceto developing enhancethecompetitiveness countries ofgoodsandservices measures shouldbe (OECD).Development and Supportive the Organisationfor EconomicCo-operation border adjustmentsareto have carbon likely oncountires anegative impact thatare notmembersof Economic and Social Commission Economic andSocial for Asia andthePacific, Asia-Pacific Trade 2011:Post-crisis andInvestment Report Trade and See Hiau Looi Kee, Hong Ma and Muthukumara Mani, Mani, Looi andMuthukumara Hiau HongMa Kee, See effects of domesticclimate changemeasures oninternational “The United NationsEnvironment Programme, Towards a Green Pathways Economy: andReduction Poverty to Sustainable Development United Commission NationsEconomic andSocial for Asia andthePacific, investment“Trade andclimate changeinAsia andthe Pacific : togetherWorking towards winoutcome” atriple unpublished. (Bangkok), Investment Opportunities. United Nations publication (Bangkok, 2011). United Nationspublication(Bangkok, Investment Opportunities. – ASynthesis forPolicy Makers (Nairobi, 2011). change mitigation: policies and optionsforglobal action beyond 2012 (Paris, 2009). for and Development, 2009); andOrganisation Sustainable Development, for Economic Co-operation Aaron Cosbey, Institute forpolicy-makers: addressing International Options competitiveness, leakage andclimate change (Winnipeg, competitiveness”, Policy Research Working D.C., Paper 5309(Washington, 2010);PeterWorld Bank, Wooders, and JuliaReinaud c The ofnegotiationshasbeenconsidering Round Doha WTO b If deployed as a trade barrier andatool deployed for asatradebarrier If protectionism, 18

of related reports to support implementation. of related to support reports Growth Strategy in2009andpublishedaseries cent oftheglobaleconomy, adopted aGreen (OECD), whose membersrepresent about 80 per Development and for Economic Co-operation sustainable growth.” even agreed to “move towards greener, more in response to theglobalfinancialcrisis, theG20 Atthe SeptemberPittsburgh 2009 Summit,held larger global “voice” infindingcommonsolutions. a deserve Africa andSouth Mexico Indonesia, growing countries, suchasBrazil, China,India, G8,inrecognitionrestricted thatlarge rapidly nations (G20) isnow supplantingthemore On the economic front, thegroup of20leading of groupings ofleadingcountries.importance Another notabletrend istheincreasing 19 In addition,theOrganisation In The economics ofclimate a andthere are d 20

Asian Association for Regional Co-Operation subregional institutionsareOther theSouth ensure resilience ofoureconomy.” use ofnaturalresources inorder to diversify and environmental sustainability, andsustainable promote green growth, investments inlong-term 2010, documentstheleaders’ determination “to adopted andDevelopment, inAprilRecovery and theASEANLeaders’ Statement onSustained sustainable corporate behaviour,sustainable corporate and promotion ofsociallyandenvironmentally ingreeningtransnational corporations industries theexpansionandinfluenceof Forum (WEF), tanks,and think suchasthe WorldEconomic ofglobalinitiativesrise by foundations private encouraging developments include theOther Vision 2020callsfor “a cleanandgreen ASEAN”, andinformation bases.knowledge The ASEAN common policiesandthecreation ofcommon of now shaping the structure enables Its for multilateral governance ontheenvironment. building institutionalmechanismsandprocesses 1967, ASEANhasmadeconsiderableprogress in by 2015.SinceitscreationASEAN community in Trade Agreement, andothermoves towards an adopted Charter, progress ontheASEANFree (ASEAN) isseenasanemerging force, withits The Association Asian of Southeast Nations among countries. that alsohelpto fosterarrangements cooperation complemented by subregionalESCAP’s role is threedimensions ofsustainabledevelopment. specific steps to promote theintegration ofthe Commissions oftheUnited Nationsto take Sustainable Development, mandates Regional outcome ofthe2002 World Summiton The Johannesburg Plan ofImplementation, Current challenges Regional level governance governance landscape. and layers inanalready crowded andcomplex rather than create governance new structures environmental anddevelopment domains, existing mechanismsandinitiatives inthe explore ways to link couldfurther community Given theinternational thismomentum, recently, socialresponsibility). corporate Standardization [ISO]Standard 14011and, more covered Organization for by theInternational example, environmental assessments impact andstandardsglobalization ofnorms (for 21 andthe 22

growth (Box 4.5). discuss sustainabledevelopment andgreen to andstakeholders makers together policy years, regionala key hasbeen forum bringing five convened (MCED), Development and every ConferenceThe Ministerial onEnvironment dialogues have beenheldto date. was inresponse to thisstated need. policy Seven Subregional Environment Policy Dialogue(SEPD) dialogue.through apolicy The establishmentofa for the region to reach a common position society. The politicalleadership voiced theneed governments between andcivilpartnership emphasis onregional implementationthrough in2002wastheon SustainableDevelopment One ofthemajoroutcomes ofthe World Summit organizations. non-governmental international agencies, intergovernmental organizations and by governments, donors, United Nations sustainable development challengesinitiated addressing regional environmental and programmes, plans,andinitiatives activities There are many regional other institutions, integrated way. development andgreen growth issuesinamore increasingly addressing environment, sustainable these are thatare long-standingarrangements for CentralCommission Asia.of (ISDC) Most Sustainable Developmentand Interstate for Environmental Cooperation (NEASPEC), Asian Subregionalthe North-East Programme ofKorea, andtheRepublic Japan China, among Tripartite Environment (TEMM) Meeting Ministers Regional Environment Programme (SPREP), Programme (SACEP), for Secretariat thePacific Asia South Cooperation inEnvironment(SAARC), and institutionalstrengthening, and regional on cross-border issues, regional building capacity dialogueandinitiatives,including researchpolicy manyRegional forms, cooperationcantake policiestointernational localcontexts. governance to andcontributes theadaptationof theglobalandnational/locallevels ofbetween intermediate linkconstitutes animportant addressing shared challenges. Sucha structure the region’s anddiverse rich naturalresources and challenges effectively isessentialfor governing aims to address environmental and sustainability and subregional governance infrastructurethat A sound, well-coordinated andcoherent regional Outlook 23, 24

79 Governance for Sustainable Development 80 Governance for Sustainable Development some of the shortcomings highlighted earlier.some oftheshortcomings coordination and integration, thusaddressing approaches that couldpromote cooperation, within andoutsidetheregion point to governance forums andexchange programmes. Lessons from buildingthrough regional various partnership October 2010). October c b a the conference itselfand initsfollow-up action. inthepreparations andotherstakeholders for ofcivilsociety theconference,through widerparticipation forchallenges. At key thesame time, theforumpolitical commitmentandsupport couldbestrengthened This exampleindicates thatsuchhigh-level forums canbeaneffective meansofbuildinghigh-level pollution were marine rain and pollution, acid highlighted, environment-development issues. Whereas in1995,regional cooperationonissuessuchastransboundary ofconferencesThe discussionsattheseries reflectanevolution towards greater integration of development planning. hasexpandedtoenvironment, includeministers offinanceandthoseresponsible for theparticipation and promotes targeted amulti-year Initially atministers regionalof concern. initiative onapriority considers emerging issues, setsthehigh-level regionalagendaonsustainabledevelopment policy five years since1985. held every This forum ofministers reviews progress onsustainable development, ConferenceThe Ministerial onEnvironment (MCED)inAsia andDevelopment andthePacific hasbeen Box 4.5: The Conferences Ministerial onEnvironment andDevelopment and improvement oflife. ofquality development, promotion ofgreen businessandgreen technology, promotion ofsustainablelifestyles development andadaptationto climate change, low-carbon promotion ofsustainable urban services, AGBI useofnaturalresources willcover five andinvestment thematicareas: eco-efficient inecosystem itsimplementation. to support has establishedaGreen Office The programme Bridge ofthe ofwork which This initiative willreceive from theGovernmentofKazakhstan, core fundinganddirectsupport Europe-Asia-Pacifica new for green partnership growth MCEDin2010. wasendorsedby thesixth ontheground. agendas to action level policy The Astana “Green Bridge” (AGBI) Initiative to promote areas. policy for inthepriority action This commitmentto follow-up for iscritical translatinghigh- action Since 2000,eachMCEDhasbeenfollowed specific initiatives up withthecommitmentoffundsto support usually meetonanannualorbi-annualbasis. canbeset. context This relatively forums, contrastswith otherministerial longmeetingcycle which agendasthatrespond to andhigh-level thechanging policy in thesustainabledevelopment context changescanbeidentifiedby MCED meetingsmeansthatmeaningful between interval The five-yearly strategy for sustainabledevelopment. have theleadto identifygreen taken growth, circumstances, appropriately adapted asakey to country sustainable development through green growth, intheregion countries aswell as subregional groupings Development Goals andsustainabledevelopment.” Goals Development sustainable economicgrowth, orgreen growth, “as oneoftheprerequisites for attainingtheMillennium governments would together, work tostrengthen cooperationforthe promotion ofenvironmentally concludedwithadecisionthat 2010,theMCEDinAstana, Kazakhstan (MDGs).In Goals Development adopted green growth strategy for asakey theMillennium sustainable development andachieving and resource-intensive economicgrowth aswelldemandfor patterns astherising resources, and The 2005MCEDheldinSeoul, ofKorea, pointed posedby Republic to rapid risks the long-term while maintainingeconomiclivelihoods. drawing lessons from thehostcity, whichhadsuccessfullycleanedupitssevere environmental pollution highlighted the need for concrete to reverse action thetrend ofcontinued environmental degradation,

Report of the Ministerial Conference oftheMinisterial andthePacific inAsia onEnvironmentReport andDevelopment (E/ESCAP/MCED/Rep., 1996). 18April Astana “GreenAstana Bridge” Initiative: for theimplementation of“green Europe-Asia-Pacific partnership growth” (E/ESCAP/MCED(6)/13,20 Ministerial declarationMinisterial onenvironment andthePacific, anddevelopment inAsia 2010). 2010(E/ESCAP/MCED(6)/11,20October c b Influenced by the high-level policy agendasetfor by thehigh-level policy Influenced regional include: efforts initiatives presented inBox 4.2,other, ongoing regional additionto andnationallevels. the In and translate commitmentsto international the to theinternational nationallevels,can bridge Regional MEAs andimplementationmechanisms a the 2000 MCED in Kitakyushu, Japan, Japan, in Kitakyushu, the 2000MCED • • of Indonesia, Malaysia, Papua Malaysia, of Indonesia, Guinea, the New political commitmentsfrom theGovernments by high-levelseas (Box 4.6)andissupported expanse ofoceanecosystems intheIndo-Pacific The Coral Triangle aimsto protect Initiative ahuge coordinated regional orglobalaction. shared andcoastalecosystems, marine requires watersheds,sheds or and corridors, biodiversity air global publicgoods, suchastransboundary hazardous materials. Protecting regional and movement ofcontrolling thetransboundary cross-border riversandprotected areas, and pollution andglobalclimate change, managing air transboundary include dealingwithserious cross boundaries.Current national challenges governance ofnaturalecosystems orissuesthat programmes indealingwith are alsoimportant Transboundary orbioregion-based plansand •

Source: The Coral Triangle accessedfrom Secretariat, Initiative www.cti-secretariat.net/ 2011. on18May andmany asfishingandtourism, coastal protection, suchindustries otherbenefits. Triangle, many ofwhomdependon healthy coastalecosystems for provision offood, buildingmaterials, These changesalready affect the150millionpeoplelivinginandaround the coastalareas oftheCoral cent ofcoralreefs andmangroves have Asia been lostinSouth-East over thepast40years. climate change, whichhave ledto severe ontheseessentialecosystems. impacts For instance, 40per reclamation for development, aquaculture and urban andagriculture; land-basedpollution;overfishing; Unfortunately, theregion isindangerfrom many threats, includingcoastaldeforestation; wetlands species ofreef fish. Vital ecosystems inthisarea include coralreefs, mangroves andseagrass beds. Sea”, thisoceanecosystemcoral speciesandabout3,000 holdsmore than75percentoftheknown The Coral Triangle istheepicentre oftheworld’s coralreef diversity. asthe Alsoknown “Amazon ofthe Box 4.6: capacity building,capacity includingnegotiatingskills. improved nationalmainstreaming ofMEAs and achievements includeraisedawareness and forto buildcapacity MEAimplementation; SPREP, asthePacific whichserves hubfor efforts waste); persistent organic pollutants, andelectronic substances,(for example, ozone-depleting chemicalsandhazardousof harmful waste movementbetter control over transboundary Asia andSouth-East withtheaimof South inNorth-East, cooperation amongcountries (MEA-REN), aregional initiative thatpromotes The MEARegional Enforcement Network subregion; organic pollutants)conventions inthePacific (persistent informed consent) andStockholm to implementtheBasel, Rotterdam (prior The Waigani vehicle Convention, animportant 25 The Coral TriangleThe 26 on Climate Change[UNFCCC], Convention on MEAs (United NationsFramework Convention issuesis also vital. transboundary The major Participation informal mechanismson Pacific Asian andSouth-East South Seas ). North-East PacificNorth-East six regional seasprogrammes (EastAsian Seas environment. Asia andthePacific, In there are to protectspecific actions their shared marine incomprehensive countries neighbouring and andcoastal environment,marine by engaging sustainable managementanduseofthe the world’s oceansandcoastalareas through aim to address theacceleratingdegradation of and theUNEPregional seasprogrammes, which Commission River rammes includetheMekong examplesofregional plansandprog-Other forest area. coveringvation corridors, 2millionhectaresof scape by conser- establishingeightbiodiversity across abroadconnectivity ecological land- goal oftheinitiative isto maintainecosystem Initiative. Corridors Conservation Biodiversity The areas through conservation thein priority and improve forest cover andbiodiversity (GMS) programme, to maintain ADBisworking Subregion oftheGreatersystems. Mekong As part managing the development potentials ofthose strategy are for becoming akey corridors of protected areasthrough linked biodiversity For terrestrial networks landscapes, well-defined government resources. than $300millionhasbeenraisedto complement to theinitiative. financial support To date, more a programme technical ofinternational and oftheGEFinorganizing astheleadagency serves Philippines, Islandsand Solomon Thailand. ADB , North-West Pacific Pacific , , ,

81 Governance for Sustainable Development 82 Governance for Sustainable Development that mustbeaddressed. environmental resources factor isanothercritical need for planningandmanagementof long-term andthe politicalthinking short-term between associated withchange. The incompatibility by different groups, ofrisks andaspectrum interpretations andexpectations varying inertia, include power andvested interests, institutional innaturegeneric andapplyacross sectors. These are specific, context while others are more ofthesechallengesand management.Some governanceof faces challenges sector Every consultation. stakeholder that fosters transparency, and accountability of fundingandagovernance environment managementsystems,sector appropriate levels and leadership, strong andpredictablepublic Avoiding requires thisdisconnect politicalwill inimplementationarrangements. to weaknesses intended results donotalways materialize due in caseswhereissound, thedesign ofapolicy enabling conditionsatthenationallevel. Even development andgreen growth allrequire similar Environmental management,sustainable Current challenges governance National andlocallevel and impacts. design from ofbothactivities theoutset,interms isbuiltinto projectorprogrammesustainability isessentialthat challenges.with long-term It year duration)isoflimited assistanceindealing projects(of 2-5initiatives basedonshort-term programmes. fundingofregional External alleviation economic development andpoverty periods, andlackofmainstreaming into insufficient funding, inadequate implementation due to inadequate humanresource capacity, does notalways match theiraspirations, partly However, ofregional initiatives theperformance ornegative impacts. any trade-offs environmental benefits, togetheravoiding with multiple andsynergy inseeking complementarity Forum Forests) on to promote recommend actions in additionto thenon-bindingUnited Nations Convention [UNCCD], to Combat Desertification Biological [CBD] Diversity andUnited Nations personnel, particularly atthelocallevel. personnel, particularly of ashortage agencies continueto experience insufficient funding. Environmental protection capacity, and lackoftechnical expertise cases,severely hampered by limited institutional environmental protection programmes is, inmany However,the effectiveness national of Green Growth. of Korea’s Framework onLow Act and Carbon Circulara and also Economy, andtheRepublic China’s Laws promoting CleanerProduction Plan for Cycle, Material EstablishingaSound These includeJapan’s Fundamental Law and production, green growth andgreen economy. resource efficiency, sustainableconsumptionand and innovative nationallegislation to promote region by developing new have gonefurther As noted inthe inChapter 1,somecountries name afew. Layer, CBD, UNCCD andtheBaselConvention, to Protocol on Substances that DepletetheOzone major MEAs, includingtheUNFCCC, theMontreal growth.and industrial are Most alsoParties to environmental ofrapidurbanization impacts to administrativeand address frameworks the and have adopted comprehensive setsoflegal address existingenvironmental challenges thatestablished institutionalarrangements governmentsAsiain Most andthePacific have agency responsible foragency solidwaste management. biofuel from solid waste without consultingthe may launchamajorprojectfor productionof ofenergy ortransportation instance, aministry responsibilities ofotheragencies. andwork For invest inprojectsthathave on the major impacts introduce often although they policiesand agencies tend to inrelative work isolation, Thus, andregional nationalministries andlocal thatfallwithintheirmandate.activities interestedministries onlyinthespecificrangeof inapproachsectoral andare implemented by strategies adopted by governments are largely interests. Many ofthelegalinstrumentsand environmental different policiesbetween sectoral also poorcoordination ofdevelopmental and resource many cases, exploitation.In there is more predisposed towards unsustainablenatural ministries, sectoral whicharethan dopowerful environment frequently have lessinfluence inchargenational level isthatministries ofthe A commoninstitutionalproblem atthe 27

broad-based. laws thatpromote As astart, development atthe national level mustbe institutional development andcapacity National-level to improve Efforts actions. to becompromised.highly likely and/orenvironmentalprinciples are concerns implementation ofsustainabledevelopment themainstreaming andthese elementsisweak, where orsectors oneormore countries ofIn decisions, andstaffdevelopment strategies. systems to ensureandethical accountability incentive structuresto reward performance, requires transparent andmerit-based recruitment, effective administrative andmanagementalso and quality financial management(BoxHigh 4.7). sufficient humancapacity, andsoundpublic forarrangements cross-sectorcoordination, andinstitutionalframeworks, including regulatory national-levelsystems must includestrong legal, institutional rivalries. matter, resulting and inoverlapping jurisdiction may claim competence overagency particular a At othertimes, more thanonegovernment governance management andpublicsector pursuitofsustainabledevelopment, improvedIn Outlook Reduction –ASynthesis for PolicyReduction Makers (Nairobi, 2011). Source: United NationsEnvironment Programme,Towards aGreen Pathways Economy: andPoverty to SustainableDevelopment Box 4.7:Public financialmanagement accounting and financial reporting, auditing and external oversight. auditingandexternal accounting andfinancialreporting, implementation, expenditure control (budgetimplementation monitoring, controls internal andaudit), PFM cover systems budgetpreparation typically allsteps andformulation, inthebudgetcycle: budget • • • • atthenationallevel,green including: economy transition,particularly in thepursuit of sustainable development PFM Several anda budgeting cycle. are aspects important management (PFM) thatprovide organization andmanagementat allstagesoftheplanningand reforms ofsuccessfulgovernance andpolicy are soundsystemsAt for theheart publicfinancial restructuring. atthenationallevel andprepare to seize for opportunities capacity new managerial possibleeconomic building,Investing incapacity trainingandeducationto enhanceadministrative, technical and labour costs); thatprovideas eco-taxes adoubledividend (taxingpollutionwhileusingtherevenue to lower Using taxesinstrumentsto promote andmarket-based green investment andinnovation, such lower ofgoodsorreduce theprice theprofitability ofgreen investments; Limiting government spendinginareas that deplete natural capital, suchassubsidiesthatartificially investment; andtaxincentives to characteristics promotesectors, green suchassubsidieswithpublic-good Prioritizing government investment andspendinginareas thatstimulate thegreening ofeconomic 28

29

is played by thePresident’s officeinIndonesia. strategy,cross-governmental andasimilarrole Council onClimate Changecoordinates the thePrimeCommission; Minister’s inIndia, ReformDevelopment National the powerful has includedclimate undertheleadershipof in nationalapproaches to climate change. China isalready some countries, thisshift apparentIn investments.private ment to sector theprivate stimulate further andsignal alevel ofcommit decision-making tainable development atthecentre ofnational would enablegovernments to positionsus- cal inputs. Suchaninstitutionalarrangement role inprovidingplaying animportant techni of environmentof planning, with the ministry Ministers’ offinance, orministry office, ministry led andcoordinated by thePresident orPrime growth, atthecentralgovernment level be able development strategies, includinggreen towards isalsoadvisablethatefforts sustain- It and resources. have definedmandates,clearly responsibilities mustalso agencies (environmental orotherwise) and policiesthatwilldrivereforms, andrelevant basisforentitieslegal andregulatory thekey sustainable development shouldprovide aclear

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83 Governance for Sustainable Development 84 Governance for Sustainable Development in support ofinnovative aswell as practices in support forThe capacity diverse to actors mobilize and expandedaccessto information technology. organizations ofcivilsociety number andvariety governmentdecentralization reforms, increasing adaptive governance to emerge. trends include Key have for created more opportunities inclusive and social trends thatmatured thelastdecade during no institutionalpanaceas. is notanarrow, prescriptive agenda. There are through more inclusive andadaptive governance Fostering transitionsto sustainabledevelopment large uncertainties, andsurprise. large uncertainties, interests, inter-connectedness, rapidchange, fromgovernance challengesarising multiple approaches mustinvolve addressing theregion’s that are inclusive andadaptive. (Box 4.8)Such development willrequire governance approaches From thelocallevel up, transitionsto sustainable local levels. at thenationallevel andwhichare devolved to a balanceasto whichresponsibilities are retained called “unfunded mandates”). The needisto strike effectively andfunding(so dueto lackofcapacity areresponsibilities they to that unable perform isthatlocal governments arescenario given new significant challengesinthetransition.Acommon andequity.efficiency However, there may be devolution andautonomy canfoster increased needs withinanationalframework. Thus, needs andcanbetter respond to programme more complete understandingofconditionsand functions, regional have orlocalauthorities a inmanyauthorities Asian countries. For some to localorregionalincreased decisionmaking environmental governance isthegranting of Local-level Anothertrend actions. affecting or taskforces. programmes, committees multi-agency and coordination procedures, jointresearch can includeagreements thatestablishclear Possible cooperationmechanisms inter-agency inoperationalroles. andambiguity authority agencies shouldaddress gapsandoverlaps in coordinating withotheragencies, environmental Inland-use planningandtransportation. health andsafety, naturalresources management, andeconomicdevelopment, energy,industrial These may includethoserelated to agriculture, institutions besidesthosementionedabove. policies andprogrammes mustinvolve several implementation ofsustainabledevelopment for implementation. effective policy The Further, cooperationiscrucial inter-agency 33,

34 Several important important Several 30,

31,

32

planning. and making andeffectivelearning policy are increasingly recognized to asimportant go beyond formal administrative structures ofpeopleandorganizations thatNetworks scales ofgovernment are allimportant. deliberative processes)atdifferent andaction processes and (includingsociallearning attention to networks,multi-stakeholder To advantageofthesepositive trends, take grown tremendously. hasalsomobilize against unsustainablepractices plans andplanningprocesses. base through government whichitcancritique Pakistan, for example, developed aninformation inKarachi, ResourceThe Centre Urban (URC) as the extensions of the Karachi Circular Railway oftheKarachi as theextensions resulted inmodificationsto thedesign aswell Mass challenge theKarachi Transit Project. This wasto and significant action An early URC measures andpolicies. informal sector, and hasalsoproposed alternative low-income groups, includingthoseinthe interests the of to fail government plans serve inpointingouthow active been particularly formulation and decision making (Box 4.9). formulation and decisionmaking areas andare changing theirapproaches to policy realizing policy thepowerinnew ofnetworks governments areknowledge, increasingly based ondiverse andforms perspectives of reduce conflicts. and adaptive to actions take stakeholders as well as empoweringnormative uncertainties, helpsgroupslearning dealwithinformational and and managementincomplexsituations. Social gooddecisionsondevelopmentand making alternatives inexploring iscritical Inclusiveness be createdwinners can by policiesandinitiatives. government into addressing theproblems. addressedproblems directly or pressured local forums organizations and civilsociety that have matters into theirownby hands, taking forming to resource gapsandineffective government For instance, residents urban have responded challenges, canhelp evaluate andaddressactors integration governmentand involve agencies non-state processes thatcutacrossMulti-stakeholder are organized often lines. alongministerial sustainability, especiallysincebureaucracies and fundamentalchallengeinthepursuitof Policy andprogramme integration isarecurrent 35, 39 36, particularly where bothlosersand particularly

37 With better shared outcomes 40

43 Members have Members 38

41,

42

future ofKarachi. issuesaffecting thedeliberation onimportant to communication,haswidely expanded to theofficialones, along with careful attention The creation ofalternative sources ofinformation thantheoriginal proposal.transit arrangement cheaper andmore environmentally mass friendly which togetherasaviable, are acknowledged system, not justafew parts. that are ableto handlebothanticipated situationsandsurprises. componentofadaptive to governancedesign isthecapacity andimplementpolicies An important guide proactive actions. signsmechanisms for warning andassessingtheimplicationsofemerging early monitoring issuesto canincorporate thatthesearrangements willdependontheextent adjust policiesandpractices making. policy to ofgovernance capitalize arrangements The capacity onpositiveand experiences anddecisions, andtheseshould bewell interventions understood andinform future ofpolicy impacts requirementlandscape. of achanging policy Therepositivecan beboth andnegative unintended andinflexible, compartmentalized, adaptiveness isemergingcentralized, asanew expert-driven, Inclusive governance Box 4.8:Inclusive andadaptive governance h g f e d c b a to adapt. the capacity Adaptive governance emphasizes learning,responsibilityandmanaging sharing resilience orbuilding arise. experiences circumstances from aslessonslearned policy andstrategiesactions progress andmonitoring sothatpoliciesmay beadjusted to adaptto changing andinnovative mustbeengagedinformulatingtheir experiences practices.Allcomponents ofsociety are onifstakeholders encouragedto canonlybeidentifiedandthenacted share Opportunities in formulating responses. need to be ableto questionclaimsmadeabouttrends, inidentifyingtheircausesand andparticipate transitionstopursuing andachieving sustainabledevelopment andagreen economy. Stakeholders andunderstandingsofcomplexissues. experiences Allofthesemayknowledge, beofsignificance in Different have stakeholders different roles intheeconomy. Moreover, have often they different beliefs, onstrategies,making policiesandactions. for are well-informedmakers heldaccountable. isalsoimportant deliberationanddecision Inclusiveness suitable responses sothattransitionagendasare notcaptured by vested interests andsothatdecision vulnerable groups are process fullyaccounted for andinformulating inthepublicdecision-making circumstances. resolution,collaboration and conflict while still providing needed to flexibility adapt to changing adaptive thatpromote governance andself-organization, lowerssocial networks learning costsof C.Folke, T. Hahn,P. OlssonandJ. Norberg, “Adaptive systems”, governance ofsocial-ecological United NationsEnvironment Programme, Globalenvironment outlook4:Environment fordevelopment (Nairobi, 2007). C.Folke, T. Hahn,P. OlssonandJ. Norberg, “Adaptive systems”, governance ofsocial-ecological Review Annual D. Swanson andS.Bhadwal, eds., world Creating adaptive inanuncertain policies: a guide for policy-making C.Pahl-Wostl, “A for conceptualframework processes andmulti-level learning analyzingadaptive inresource capacity governance L.Lebel, J.M. Anderies, B. Campbell, C.Folke, S.Hatfield-Dodds, T. HughesandJ. Wilson, C.Folke, T. Hahn,P. OlssonandJ. Norberg, “Adaptive systems”, governance of social-ecological C.Pahl-Wostl, “A for conceptualframework processes andmulti-level learning analyzingadaptive inresource capacity governance Resources Resources ecologyandsociety.org/vol11/iss1/art19/. resilience inregional systems”, social-ecological regimes”, regimes”, Resources (2005) Vol. 30,pp. 441–473. (2005) Vol. 30,pp. 441–473. (2005) Vol. 30,pp. 441–473. Global Environmental Change(2009)vol. 19,pp. 345–365. Global Environmental Change(2009)vol. 19,pp. 345–365. f,g,h 44,

45

aimsto ensure thattheneeds, interests andcapabilitiesofdisadvantaged a,b,c It focuses onunderstanding andresponding It to thedynamicsofwhole d While governance systems intheAsian andPacific region mostlyremain (2006)vol.Ecology 19(online), accessed from 11,No. andSociety www. 1,article They alsosetthestage for effective policy advice, negotiationanddecision-making. to traditionalchannelsofpolicy complementary such, deliberative processes canbehighly problems. tocontribute resolving policy As deliberations andtheunderstandingthey information canbegainedby constructive Legitimacy, andvaluable support stakeholder e “Governance and the capacity to manage “Governance andthecapacity Because itplacesemphasison Because Review Annual Review Annual (London, Sage, 2009).

of Environment and of Environment and of Environment and 46

85 Governance for Sustainable Development 86 Governance for Sustainable Development must alsobeprepared to putinplacespecific change. Nationalinstitutionssocio-economic using aggregate indicators ofresource useand monitoring and globalinstitutionscansupport of nationaladaptation policies, national, regional (beneficialandadverse)assess thelocalimpacts are inabetter often positionto monitor and different ofinformation. kinds While localactors placeatalllevels,assessment musttake anduse adaptive At the same time, action. monitoring and for critical often maintainingresilience andtaking Local institutionsandcapacitiesfor response are at theregional level. and tradingpartners, key countries, inparticular as well ascollaborative initiatives withother complemented by bottom-up approaches, approachesreform, mustbe suchtop-down as high-level nationalagenciesto drivepolicy require strong leadershipandvision,aswell sustainable development andgreen growth to theresponseofsocieties. capacity While a basisfor resilience, achieving andisimportant manifested atdifferent scalesofgovernance as adaptive and governanceInclusive mustbe adaptation interventions. policies arising, for example, from sideeffects of areplanning and to needed avoid conflicting coordination andcooperationinstrategic policy mechanismsforimplementation. Institutional in thestate. formed, suchas Water Watch Penang, andcontinue to to contribute buildingenvironmental awareness used informulating thePenang strategic planfor decade. otherorganizations Several thenext were then deliberated andagreedStakeholders of40indicators. onaframework Their recommendations were better municipal management (Manila, 2000). better municipalmanagement(Manila, participatory process. participatory civilsociety,active andastate government thatwasopento inputsinto strategic planningfrom a for development plansformulatedsupport through theprocess, becauseithadresources behindit, The SPIwassuccessfulinengaging peopleindiscussingsustainabledevelopment andgainedpolitical c b a of indicators for assessingsustainable development inthestate ofPenang inMalaysia. progressive socialandenvironmental change. The Sustainable Penang (SPI)developed aseries Initiative andsecuring to learning important areA recurrent initiatives very isthatnetworks themeinsustainability Box 4.9: d better municipal management (Manila, 2000). better municipalmanagement(Manila, academe, businessandindustry, youth groups, groups organizations. community andnon-governmental created through from consultative government, roundtable discussionsconsistingofparticipants No. 3,pp. 421–426. Perspectives (2005)vol. 5,No. 2,pp. 29–43. Asian Development Bank, Asian cities in the 21st century: contemporary approaches to municipal management. contemporary Vol. Asian citiesinthe21stcentury: 4Partnerships for Asian Bank, Development Asian Development Bank, Asian cities in the 21st century: contemporary approaches to municipalmanagement. contemporary Vol. Asian citiesinthe21stcentury: 4Partnerships for Asian Bank, Development T.P. Leng, Penang, process, inpeople, experiment Malaysia private, progress,“The andpublicpartnerships: andprocedures”, Asia Pacific A.Fazal, approaches”, andaction-oriented Sustainable Penang Participatory Initiative: “The (2009)vol. Development 52, The SustainablePenang Initiative b

c,d 47

with safeguarding access. market combine andbalanceenvironmental protection from must competition.Countries international conditionalities to protect domesticindustries economy considerationsshouldnotbeusedas sustainable development, green growth orgreen individual analysis. Furthermore, environmental, eachcaserequiresapplicable to allcountries; for transitionto agreen economy thatis message isthatthere isnoblueprint important and directions. At thenationallevel, one lessons to guidefuture governance decisions Developments atall levels provide valuable frontier andneedscareful attention. towards green economicgrowth isagovernance andchange. Furthermore,uncertainty transition bycharacterized complexity, fragmentation, ofsustainabledevelopment isthe context hasshown, governance inAs thisoverview Conclusions and withoutincreasing administrative burdens. from atdifferent actors way levels inameaningful better prepared to receive andanalyseinformation national, regional andglobalinstitutionsmustbe improvement.bear onpolicy At the same time, and generated bycanbebrought localactors to feedback loopssothattheinformation provided a Indicators were Indicators 48

b

sustainable development. the transitionto green economicgrowth and and more adaptive governance would help andconsiderationoflessonslearned Monitoring andwhy. arearrangements orare notworking and analysisonwhichpoliciesinstitutional gap isalackofcomprehensive, credible research for sustainabledevelopment. One important aspirations global and local to help will bridge shared withcommunitiesandlocalgovernments, flows to ensure thatare best governance practices of optimaleffectiveness, isessential. Information principle, withgovernance geared to thelevel to locallevels isstilllacking. The subsidiarity Furthermore, integration from vertical global than costs. hidden, thereby resulting innetsavings rather are andthereforeimpacts currently externalized such as on the environment and health. These costs will beoffset by reducing negative impacts, approachesnew mustdemonstrate thatthese to agreen economy willrequire additionalcosts, overcome thattransitioning concerns long-term the mostvulnerablegroups. Meanwhile, to help social assistanceandwelfare programmes to help ajusttransitionshouldalsoincludeensuring reductionefforts.Further,improveand poverty canhelpclosethegendergapthese efforts jobcreation. to support Targeting women in for qualifiedentrepreneursworkers andskilled programmesmust includeeducationandskills term. especially inthe short Thus, the transition and losersinthetransitionto green economies, for thatthere theeventuality willbebothwinners addition,governance approaches In mustaccount capacity. resources, commitmentsandimplementation much greater by focusappropriate supported attention. Strengthening governance requires further is onesuchexamplethatdeserves already andadaptive governance exist.Inclusive vision andexamplesofsuccessfulresponses to governance are shared, andinsomecasesthe andissuesrelatingMany ofthechallenges, barriers requirements.appropriate fundingandreporting guidance, stafftrainingandestablishingpolicy coordination to subnationalentities, including and oversight, implementationsupport necessary sureagencies shouldmake to provide the national legislation andprogrammes. National by comprehensiveeffective whensupported Furthermore, localinitiatives are more often 87 Governance for Sustainable Development

resilience how itcanbeapplied anddescribes This chapter introducesof concept the helpbuildresilience.factors transformative change. As shown inBox 5.1,three canresult in economicshock, or anextreme stress, for exampleinthecase ofnaturaldisaster levels ofresilience meanthatextremeHigh organize outcomes. inthepursuitoflong-term to adapt to changing pressures andto self- it alsoreflects “adaptive capacity” –thecapacity system,society, but economysocio-economic or mayResilience comefrom thestrength ofthe withminimaldisruption. shocks anddisturbances oreconomyto resist society has thecapacity widely used to communicate the notion thata ecosystems,of concept ofresilience the isnow economies. First appliedinrelation to thestudy the increasing facedby levels societiesand ofrisk point whendiscussingappropriate responses to reference hasemergedResilience asanimportant to need the for manage strengthen and resilience. change require notonlygreener growth, butalso associatedprojected withclimate impacts ecosystems andthepotential scaleofthe of thedegradation ofthequality observed, The extensive environmental changesbeing disastrous impacts.” increasingly systems, connected andthethreat of risks, the prospectofrapidcontagion through ever-greater“faces regarding concerns global haverisks multiplied. As noted earlier, theworld social changehassignificantly increased as vulnerable to environmental, economic and of peopleintheregion whoare exposedand andthenumberhas becomemore uncertain environment anddecisionmaking The policy- Introduction Introduction CHAPTER 5: STRENGTHENINGRESILIENCE 1

change adaptation. management, energy diversification andclimate agriculture, planning, city naturalresource inanumberofareas— to policymaking policymaking Resilience and is not knowable andmanageable. is notknowable resilience into accountthatthefuture takes approach that promotesA policymaking energy intensity. better thanonethathashigher prices rising energy more efficientlywillbeableto withstand energy use from economicgrowth by using economic system thathasmanagedto decouple energyin thefaceofrising prices, asocio- social andenvironmental resilience. For instance, andsimultaneouslyfosteringprices economic, pressureconsumption, alleviating oncommodity byshocks reducingresource of intensity the growth ofadverse canmitigate theimpacts more resilient to economies. greener Ashift sustainable economicgrowth canalsoleadto Policies that promote and actions environmentally financial crises. well positionedto recover from economicand diversification are andhighexport capital stock, ahealthy economicsectors), to insuranceofkey financial, commercial and andhouseholdsectors (forrisk instance, related to debtburdens inthe instance, withmoderate exposure countries to to growcapacity andtransform successfully. For thatareCountries more resilient have agreater societies to grow andtransform successfully. ofeconomiesandhelp explainthecapacity conceptsunanticipated conditions. Resilience to adapt can that policies need economies 2 Resilient

89 Strengthening Resilience 90 Strengthening Resilience meant to mitigate of different negative impacts measuresis theneedto balanceshort-term considerationfor policymakers Another important below.adaptation, discussedfurther areagrowth ofclimate change intheimportant the pursuitofresilience beyondgreen extends Foracceptable rangeofperformance. instance, orfeedbacks outsideanfunctions permanently its push can shock ifasudden sustainable environmentalcapacity. system A no longer is developing within given of boundaries Promoting goesbeyond adaptive capacity shape change.” ecological systems to copewith, adaptto, and systems…to ofsocial- managing thecapacity from thosethataspire to control changein . and risk. conceptofresilience policies shifts “The cope andtransform amidincreasinguncertainty and societiesintheregion willbewell placedto maytobe sufficient not ensurethat economies However, measures to achieve green growth on behalfoftheEnvironmental Council to theSwedish Advisory Government(2002). of transformation”, scientific background paperonresilience for theprocess ofthe World SummitonSustainableDevelopment, 250,May-JuneTR News 2007;C.Folke and others, inaworld andsustainabledevelopment: building adaptive“Resilience capacity Source: Adapted from K. Tierney, andM.Bruneau, to resilience:“Conceptualizing disaster andmeasuring lossreduction,” akey in • • • • inorder toknowledge copewithchangeanduncertainty. organization, where feedback internal to combinedifferent influencesdevelopment; theability of types Resourcefulness: to diagnose, theability andinitiate prioritize solutionsto problems;for thecapacity self- • • • ofpathwaysa diversity (or potential for creating ofpathways) adiversity for thesamegoal. achieving to whichdifferent theextent requirements; system elementscansatisfythesamefunctional Redundancy: • • • • withoutsignificant lossofperformance. ofasystem to theability withstandaperturbation Robustness: Box 5.1:Factors that buildresilience knowledge andunderstandinginto managementinstitutions andaction knowledge to generate andrefine for ecological andchange—monitoring selfevaluation Opportunities thatcreate inproblemInstitutions flexibility solving andexperience for knowledge andstoring andnetworks learning Institutions thatbalancepower amonginterestInstitutions groups ofinstitutions andredundancy Diversity Heterogeneity oflandscapes (for example, pollinators, nitrogen fixers) andbiological (forGenetic diversity example, of, diversity groups andwithin,functional ofspecies andenvironmentalNature systems. ofrelationships anddiversity socio-economic between Equitable incomedistribution development (forInfrastructure example, energy distributed systems) Access to stocks ofcapital(alltypes) 3 resilient region. to also but aclimatereduction of thebuilding significantlycan contribute notonlyto poverty general, andfemale education inparticular, research hassuggested thateducationin recovering from economicshocks. Recent such aseducation,canhindereconomiesfrom Similarly, investments shifting from socialsectors, food supplyto environmental change. but increaseterm productivity of the vulnerability intensive monoculture systems canboostshort- prevail. theagriculture sector, In for instance, resilience. considerationsoften Short-term measuresshocks withlong-term to buildsystem physical andeconomiccapital. asboostingcapital canbejustasimportant naturalandsocialdeveloping andsupporting Different forms ofcapital, therefore, are critical; sustainable economicgrowth. reduction,improved livingstandardspoverty and 4 Gender equity isalsoessentialto equity Gender and decentralized decisionmaking. approach include “automatic” adjustment, policy review.and formal policy Outcomes ofthis analysis,deliberation multi-stakeholder looking using tools thatallow for integrated andforward suggests thatadaptive policiescanbe facilitated withadaptive experience policymaking Recent causes andimpacts. interests, about aswell aslarge uncertainties to dealwithmultipleof managementactions solutions require negotiationandevaluation aboutgovernance, ascomplexthinking requires—differentleads to—and ways of As discussedinChapter 4,adaptive policymaking management planning andnatural resources approaches in agriculture, urban Adaptive and inclusive • • • to policymaking: policies to illustrate how resilience canbeapplied introducesThis section three areasand ofactions Resilience inaction Measures to protect forests orwatershed services, burdens andrisks, andbenefits andopportunities. to beignored, leadingto unfairallocation of groups andvulnerable disadvantaged are likely theinterests andcapabilitiesofOtherwise, inclusiveness ingovernance alsomatters. challenges, whenParticularly dealing with certain

conditions. under awiderangeofpotential climate andconfersdevelopment practice benefits growth. Sucharesponse represents sound inclusive andenvironmentally sustainable ofabroaderto achieve effort change aspart Pursuing a “no regrets” response to climate baseandagriculture);the industrial and many otherareas to ensure resilience, suchas energy demands(diversification isalsovitalin dueto rising supplies to helpavoid shortages communities, whilesupplementingenergy to underserved expand energy services of renewable energy technologies) to help pathways (includingdecentralized mixes Diversifying anddecentralizingenergy dealing withlocalized andevolving challenges; approaches in thatbetter engagestakeholders Applying inclusive andadaptive governance 5

that support learning that support the poor. thisregard, In adaptive approaches andcopingstrategies ofexisting knowledge intoexisting livelihoods accountthe andtake Adaptation strategies shouldbuildonandsustain responses addressconcerns. localstakeholder at higherlevels shouldensure thatadaptation to access need will climate information; actors information onweather andprices. toimproved deliver timely opportunities as advancesininformation technology create to support risk management. risk to support information required ofscience andtheability allow faced, abetter understandingoftherisks engagement ofresearchers will withfarmers closeinnovations thatbring Institutional possible adaptationresponses. future dueto climateabout likely risks changeand withscientificunderstanding knowledge practical together this thatbrings knowledge actionable agendas, willbevitalto produce and new andresearchcommunication, reflected inpolicy Changing forms attitudesandnew of well asdebtburdens, constraintheirresponses. technologies markets, andcredit,commodity as as soilconditions, water availability, accessto alsounderstandhowthey otherfactors, such rural economicdevelopment. More thanothers, andwhich iscentralto food achieving security from arising natural climaterisks variability, haveoften withmanaging substantialexperience Managing climate risksinagriculture. Farmers examples are provided below. inclusive andadaptive governance. Three agendas, have for created more opportunities of environmentalprotection government on access to information technology andtherise growthsuch as of civilsociety, expanded ofthetrendsSome identifiedinChapter 1, crucial livelihood options. to economic shocks byvulnerability removing adequately compensated, couldincrease their for example, by excluding traditionalusers, ifnot in climate adaptation. ofissuesinvolvedto dealwiththecomplexity to fieldstation to farmers, whichisnotsufficient model oftransferring research from laboratory communication. This isincontrastto thelinear researchers two-way sothatthere ishigh-quality and farmers institutionalizing thelinksbetween substantial attention to brokering, often and development modelsinagriculture pay options 8 areto becrucial. likely 7 andreversible orflexible 11 This remains trueeven 9 , 10 Some research Some 6 Communities 91 Strengthening Resilience 92 Strengthening Resilience the resulting information anddeliberation government’s to institutional manage capacity perceived andspread threats quickly. to A start allowed civil “movements” thatrespond to The advanceofinformation technology has institutionalandpoliticalfactors. socio-cultural, isconstrainedby ofauthorities accountability politicalrepresentationmaking, decision and innational cities even where publicparticipation forms governance have ofurban emerged in negative impacts ofurbanization. negative impacts correctivemeasures to dealwiththe undertaking land-use changesandenduprelegated to upwith struggleto keep agencies typically of cities. Planning andenvironmental regulatory challenges play majorroles inthedevelopment change and, increasingly, environmental sustainable cities. Economic forces, demographic Engaging stakeholders inthepursuit welfare development. andcommunity oftenure to projectsuccessbutneedto befollowed for aresecurity important social upwithsupport for thesettlersandimplementingupgrading projects. Where relocation isinvolved, compensationand Local alsoplayed NGOsandtheirstrongnetworks acrucialrole tenure localcommunity insecuring that hadspannedatleast30years, upgrading programme, whichwastheresult processorganizations ofalearning withlocalcommunity tocreation theprojects’ ofamore flexiblefinancingmechanismwas also important success. The slum empowerment oflocalcommunities, asthe projects are largely plannedandimplemented locally. The The overall process wasasignificant step towards and decentralizationto localauthorities International (2006)vol. 30,pp. 157–174. b a communities affecting about54,000households. As ofMarch 2008,512projectsvaluedatapproximately $98millionhadbeenfinancedin1,010 to financing, to resolve ithasalsoworked conflicts. directly to communities. CODI operates arevolving addition loans. fundfromsoft In whichitcanmake andfinalize projects,help select andthenoversee infrastructuresubsidies andhousingloansprovided governmental organizationsand government, (NGOs),local NGOs,international and todo surveys withmany otherstakeholders,includinglocalnon- brokerworking CODI asanimportant acts with landowners to obtainandsecure landfor use. collective launched in2003. Through thisprogramme, many organizations founded savings groups andnegotiated andHumanSecurity, Development ofSocial was (CODI) Institute Development undertheMinistry In Thailand, anationalslumupgrading programme andimplemented byOrganizations theCommunity Box 5.2: The Mangkong Baan programme c programme in Thailand”,programme community processes”,community Environment andUrbanization (2006)vol. 18,pp. 523–536. living conditions. to helpresolve inBangkok andimproveland andinformal conflicts settlementsoncanalwaterfronts and infrastructure. thatowned CODI government successfullybetween authorities wasableto intervene involved relocation for andreconstruction,thuscreating planning collective morenew opportunities V. andR.Perera,Viratkapan to whathascontributed theirsuccessorfailure?”“Slum relocation projectsinBangkok: Habitat S.Boonyabancha, nationwide from slumupgrading“Land for experiences theBaanMankong housingthepoorby thepoor: N. Usavagovitwong N. andP. Posriprasert, tenure,development poorhousing on Bangkok’s securing “Urban waterfront: supporting b

Environment andUrbanization 12 a isanexampleofcoordination across levels ofgovernance. Participatory Participatory c

(2009)vol. 21,pp. 309–329. a Some projectsentailedrefurbishing sites, Some whileothers communities andecosystems. to beeffective for necessary across allor skills do notalways have reach theknowledge, systems asstateof social-ecological agencies elementofmaintainingtheresilience important Local managementofnaturalresources isan Managing natural resources withlocalusers. (Box 5.2). own solutionsto landandhousingproblems organizations tocommunity comeupwiththeir programme in by efforts Thailand supported the “Baan Mangkong” nationalslumupgrading solutions to improve theirresilience. For instance, indefiningeffective stakeholders can support innovationsresult. will Institutional social conflict and inclusive development willbefacilitated or sustainable development initiatives thatsupport effective whetherurban solutionwilldetermine effectively negotiate amutuallyacceptableand 13

using newly availableusing newly knowledge. andare flexibleinupdatingrulesinterventions from learn past activities Co-management immediate threats to thewater supply. the agreement effectively address themost other watershed managementactivities,should to funding (PES)arrangement ecosystem services the intention to expandthispayment for hasexpressedmanagement ofthewater utility payments for reducing illegallogging. The watershed communitiesprovides andtwo intheAceh thewaterbetween River utility As anexample, anagreement inAceh, Indonesia, next steps.next are willingto deliberate andnegotiate the demand changing practices,stakeholders circumstances sothatwhennew stakeholders to needs trust developedamong be uncertain, relationships andfutureand-effect dynamicsare dealing withcomplexproblems where cause- local social-ecological resilience.local social-ecological of naturalresources inways thatenhance withsustainableuse objectives conservation of themore promising approaches to integrating emerged has Adaptive asone co-management and ecologicalof aproblem. dimensions institutionsandthesocial between linkages is along-standingimperative to improve the systems wherecomplex social-ecological there suited to isparticularly Co-management that emphasizes large-scale technologies.that emphasizes large-scale management highly technical,built on top-down This will require changefrom water bureaucracies deliberated openly. needs, options, and impacts, having and them onbringing inawiderrangeofperspectives processes bynegotiation anddecisionmaking may also inform and helpshapemore formal sustainable useandmanagement.Dialogues and fairallocationpromoting ecologically to reducing equitable water conflicts,ensuring waters. Dialoguesmay contribute transboundary in complexsituations, suchasregional and water resource development andmanagement gooddecisionsaboutalternatives andmaking for is critical exploring participation stakeholder multipleand many stakeholders.Meaningful environment, withsignificant uncertainty use, presents ahighlycomplexmanagement its relationship andland withfood security The challenge ofwater security, alongwith and collaborationare mainpillars. itstwo 20

22,

23 17 14,

15 Learning 21 18,

19 24, In In

16 25

• systems. For example: theresiliencesupplies andenhance ofenergy renewable energy asameansto diversify energy forsimilar targets to demonstrate support their inAsiaMany othercountries andthePacific have to investbillion to$180 that goal. accomplish 15 percentby 2020andoutlinesacommitment China aimsto boostrenewable to energy capacity For instance, Energy theRenewable Lawin (2006) pathway,including promoting renewableenergy. arecountries increasingly choosingthelatter Driven largely concerns, bymany energy security also aligns withtheclimate changeagenda. efficient anddiversified energy systems, which towards energydirecting infrastructure more petroleum-based fuels. The otherpathinvolves fuel supply, andproviding massive subsidies for uninterrupted fossil ensuring transportation, resource-intensive private continuing to support thestatusquobyOne pathaimsto preserve canbegroupedconcerns into categories. two broad terms,In thepossibleresponses to these energy security. about andraisesconcerns economic stability their thatcanundermine supply fluctuations and to price countries exposes dependence countries.As in Chapterdiscussed 1,fossil fuel issues indeveloping Asianto be important Energyaccess, affordability continue andquality energy systems Diversifying anddecentralizing • organizations as part of their normal business. oftheirnormal organizations aspart processesmandated bybasin someriver for widerengagement,suchasconsultation management have openedsomeopportunities Commitments tointegrated water resources

in recent years); energy to 17percentby 2025(from 2percent the current mix,whileexpandingrenewable aimsto diversify itsenergy fromThe country driven by itsneedto diversify itssupplyoffuels. Indonesia’s renewable energy programme is hot water; hot water; and syntheticfuels, andenhanceduseofsolar 10 percentofoilusesubstituted by biofuels its power basedonrenewable energy, capacity hopesto have 15percentof 2032, thecountry areas. urban rural and in By access toelectricity decentralized power generationto improve isusingrenewable energyIndia to provide 28 27 26

93 Strengthening Resilience 94 Strengthening Resilience basis, concludethat,onarealResources Institute cost generally trending upward. Analysesby the World prospectsforNevertheless, renewable energy are well astechnological andinstitutionalcapabilities. depending uponenergy resource endowments, as programmes,and across countriesvaries diversified pathway, along with specific policies The potential successofimplementingamore and wind;biomasspower usingagro-processing for someresources (for example, solarenergy and maintenance costs, includingzero fuelcost capitalcosts,up-front italsohaslower operating While renewable energy generallyhashigher • competitive by 2012. and solarphotovoltaic energy isprojected to be already competitive withcoalandnaturalgas, •

grid-supplied poweron-site and petroleum-based boilers. estatescogeneration inagro-industrial isanobvious win-win solutioncompared to fossil-based wastes andwoody biomass, are a logical applicationfor deliveringreliable Biomass energy services. poorruralareas,In generationsystems distributed usingtraditionalbiomass feedstock, suchasanimal of financing.availability logicacross needsto andprojects, sectors becalibrated butthetraditionaleconomies-of-scale to the construction. ofdecentralizedThe andmodularinfrastructurewillvary financialandeconomicviability buildings, where theembeddedenergy canbesignificantly reduced compared to conventional b a scale; concentratingsolarpower, forbeing taken second-generation whichhasyet to beproven atalarge be more appropriate insomecases, especiallywhenfundingconstraintsexist. This design approach is While conventional, may centralized infrastructureisstillnecessary, modularanddecentralized services Box 5.3:Decentralized anddistributed energy generation www.esolar.com 2011. on21May grid-supplied power. adjacent streams andrivers. The environmental benefits ofthesecogenerationplantsare obvious compared to fossil fuel-based projects. Mechanism as CleanDevelopment These plantsutilize waste biomassthatwaspreviously dumpedontheground orin Asia, typically payAsia, for typically themselves withinafew years. mitigation, for example, vialossreductionprogrammes for ofCentral theageinggas pipelinenetworks diode(LED)andsolarphotovoltaic light-emitting addition,methane lighting. In include hand-cranked For example, ineSolar, seethetechnology andprojectsummaries Scalable solutions fortheglobalCSPmarket, accessedfrom than 80percentin1983to 2percentin2008; consumption for power generationfrom more Fourearlier Fuel Strategy helpedreduce oil Diversification Strategy, adopted in2001.Its Five-Fuel ofitsNew mix by 2010asapart generation 10 percentofthetotal electricity hassetarenewableMalaysia energy target of 11 percentby 2050; and increase theshare ofrenewable energy to energy resources, utilize theminremote areas, aimstoDevelopment, diversify into renewable Viet Nam,underitsstrategy ofNationalEnergy Dozens of biomass cogeneration plants at agro-industrial estates in Indonesia and Malaysia have andMalaysia Dozens estates ofbiomasscogenerationplantsatagro-industrial beeninstalledandregistered inIndonesia 31 a biomasspower and onshore windare for next-generation nuclear power for and for plants, whichare next-generation residential stillpre-commercial; 32

29 and 30

purpose ofusing thetariffs) to hascontributed purpose for to lessthan10MWcapacity thecapacity small”“very (from lessthan1megawatt [MW] has increased remarkably. The reclassification of biomass and other renewable energy resources the numberof smallpower producers”“very using renewable energy through FITs. Consequently, Thailand investment haschannelledprivate into from highsystem losses(Box 5.3). power generation,whichcommonlysuffer for expandingnationalgrids withcentralized systems), thangeneration andtri-generation powerprime at the point of use (including co- for generation,whichprovides distributed Financing more canbeoften effectively used respectively. fordrilling steam andgasextraction, the cost”“fuel iscapitalized intheform up-front of from wastewater). For andlandfillgas, geothermal waste; biogasdigesters for recovering energy renewable purchase obligations(RPOs). establishing feed-in-tariffs (FITs) andcreating ofthemostcommonmeasuresSome include to improve thefeasibility ofrenewable energy. Governments across theregion steps are taking generationplants.distributed toevent disable anentire isunlikely of network andtyphoons,asasingleextreme as earthquakes inherent resilience to catastrophic events, such ordecentralizeddistributed systems have some b Other low-cost options for basic services options for low-cost basic services Other 33 Further, 34

practices. andagriculturaltandem withsustainableforestry biofuelsispursuedinof second-generation care to ensure mustbetaken thatthepromotion processing astechnologies mature. However, ofbiofuelwhile improving theefficiency cost andincrease offeedstocks, theavailability footprint. reduce the Their usecouldalsofurther andalsoarelativelyfood security smallercarbon couldhavethey relatively on smallerimpact crops, andorganic municipal solidwaste. Thus, from residues offorests andagriculture, energy biofuelscanbeproducedSecond-generation fuels. infirst-generation sometimes experienced energy mixwithoutthesignificant trade-offs which canpotentially helpdiversify acountry’s biofuels,consider promoting second-generation intheregion countries Developing couldalso (Box 5.4). for housing—istheintroductionofnetmetering thegrowingconsidering andneed urbanization simultaneously—which shouldbeemulated renewable energy andenergy efficiency One ofthemostinnovative initiatives to promote contexts. adapted to specificcountry such measuresas FITs be carefully andRPOsmust success canbereplicated inothercountries, but politicalstability.and thecountry’s Thailand’s advice from smallandmedium-sized enterprises the success, alongwithtechnical assistanceand in theglobaldialogueonclimate change, concept hasbecomeanimportant Resilience to climate changeadaptation Pursuing a “no regrets” approach from emerging renewable resources (wind, solarpower, hydropower, ocean,run-of-river andbiomass). tariff. The feed-in willprovide tariff aguaranteed fixed for price produced atleast12years for electricity to sellpower to thegrid atanapproved retail atthenormal feed-in andbuypower tariff asnecessary renewable energy law Asia) inSouth-East schemethatwillallow includesanetmetering consumers For example, thePhilippines’ Energy of2008(considered Renewable Act to bethe mostcomprehensive combined withfeed-in-tariffs to promote renewable energy generationindecentralized applications. incentive improvements.same timeprovides for apowerful end-useefficiency canbe Netmetering providesmetering basisfor aregulatory anddecentralized distributed energy systems andatthe generated into thegrid, revenue eitherearning electricity orreducing netpayable consumption.Net atthepointofuse,With netmetering, andisableto supplyexcess theconsumergenerates electricity Box 5.4:Netmetering a 2008”, 28July2008, accessedfrom www.senate.gov.ph/republic_acts/ra%209513.pdf on30March 2011. Congress ofthePhilippines, Fourteenth Congress, Session, Regular Second No. Act “Republic Energy of 9513,Renewable Act climate changeare already visibleintheregion. climate change, andmany manifestations early of To iscommitted theworld to thisextent, some that willbeemitted over oftime. thesameperiod regardless ofgreenhouse ofthequantity gases overwill continueto rise thecomingcentury gases intheatmosphere. Similarly, sealevel resulting the and emissions stockpast these of futureand greenhouse of emissions gases, on but 40to 50 yearsthe next donotdependonexisting (mostly oftemperature for andrainfallpatterns) are nothypothetical. climate Indeed, projections ofclimateefforts, theprojected change impacts foradds to thedifficulty initiatingadaptation accurately (especiallyvariables soatlocallevels) to predictfuturethe inability changesinclimate areto adverse expected beofan nature. While by climate change. As awhole, thesechanges will beaffected community activity, and every of sector oftheregion, every country Every adapt to stress andchange. to for andthecapacity capacity self-organization basic structureandways offunctioning, the whileretaining disturbances thesameabsorb ofasocialorecological systemas the ability to resiliencedescribes Fourth Assessment Report ofclimate change, thecontext theIPCC In (IPCC). the Intergovernmental Panel onClimate Change featuring prominently of insuccessive reports can rapidlyeraseaccumulated development damaging effect on theirwell-being. Disasters scarce assetsto naturaldisasters hasaparticularly to helpcopewithdisaster losses, andthelossof Poor have often communities risk. fewat assets to theseprojected changes, withthepoormost areas, Asia exposed andthePacific isparticularly With itslarge populations, especiallyincoastal 35 a 36 95 Strengthening Resilience 96 Strengthening Resilience conceptual approach. Those are events with climate changerequire afundamentallydifferent ofpossibleevents associated with types Some (Box 5.5). adaptation activities,where are risks high as inmany water resources andagricultural unless projectionsare required to guidedesign, degree ofcoherence across projections, and explicit basisfor design unlessthere isahigh to utilize asan projectionsofthesevariables is muchhigher. may beimpossibleorunwise It andmagnitudes events,frequency ofextreme andtheincluding seasonalrainfallpatterns around ofclimate many change, otheraspects with respectto theirtiming. The uncertainty likely,very althoughthere may be uncertainty storage andsea-level rise, are deemedto be the lossofhigh-altitudeglacialandsnowpack ofclimate change, impacts includingCertain resulting poverty outcomes.”resulting poverty and poor onthe increasing disaster impacts nexus,charge drastically thedisaster risk-poverty decades. Climate to changeisexpected “turbo- progress achieved withgreat over effort previous agriculture andfood ofAsia sector andthePacific ADB, (Manila, 2009). d c b a water. water deficitsthroughmanage structural tradeinembodied(“virtual”) management measures. There isnosubstitute for water, may beableto althoughsomecountries of water sectors, between reuse ofwastewater, andrecycling andawiderangeofaggressive demand agriculture),groundwater), inirrigated re-allocation improvements (particularly inwater useefficiency and Adaptation approaches includesignificant (bothsurface expansionofstorage capacity production whencombinedwithyieldimpacts. (ADB) projectsadecrease incultivablearea for moststaplecrops, leadingto large decreases inoverall A recentFood studyby theInternational Policy (IFPRI)andAsian Research Bank Development Institute floodsanddroughts.climatic variability, inparticular and resulting competitionfor water andlandresources,exposes themto significant from risks increased region’s food andwater security. The extensivereliance ofmany economiesoftheregio onagriculture combinationwithcurrent landdegradation trends,In climate changeposesamajorthreat to the Organisation for Economic Co-operation and Development, 2010). Organisation andDevelopment, for Economic Co-operation induced impacts in Asia.” in induced impacts Water, alongwithagriculture, hasbeenidentifiedasthesector “most sensitive to climate change- consumption andincreased malnutrition. increases price areto turn, leadtocommodities thanunderbaselineassumptions. likely reduced In Intergovernmental Panel onClimate 2007). Change(Geneva, year, andreplacement capacity ofcapitalstock. includingbothnew investment needsfor water andsanitation inAsia andthePacific over 2010-2020atroughly $35 billion/ Box 5.5: Threats from climate changeto food andwater security Asian Development Bank and the Asian Development Bank Institute (ADBI), Infrastructure for Asian (ADBI), BankandtheAsian Infrastructure aseamless Asia Development BankInstitute Development (Tokyo, ADBI,2009). International Food International Policy (IFPRI)andAsian Research Bank(ADB), Development Institute Buildingclimate resilience inthe Intergovernmental Panel of onClimateContribution Change(IPCC), Group oftheWorking IIto theFourth Assessment Report See for See example, D. waterWichelns, conceptinrelation to theagri-food Aneconomicanalysisof thevirtual (Paris, sector b Adaptation requirementsbe extensive. will recentlyADB has estimated the 37 a This willresult inlarger increases ofstaple intheprices

economic factors, suchasincomeandeducation. alsodependscruciallyonsocio- Such capacity policies for naturaldisaster management. ofspreading throughthe extent risk insurance and planning and responsecontingency capacity; and floodcontrol); ofinvestments theextent in preparedness (for systems example, warning early depends to on the extent which policies foster from to locality. locality obviously Suchcapacity to country, andhazards) from varies country natural hazards (includinghydro-meteorological climate changeandto withstandandrecover from (different in natureto adaptto andinlikelihood), risks to dealwiththesevarious The capacity catastrophic circumstances. andpotentiallyinvariably accompany uncertain address thesocialandpoliticalstresses thatwill toand institutionaldesign, andinparticular considerations with respect to regional integration event. Events ofthisnature require long-term Antarctica icesheetisanexampleofsuch wereif they to occur. The collapse ofthe West probabilities butwithimmenseconsequences lowextremely (or even completely unknown) c d decision making intheseareas.decision making monitoring, areand satellite-based improving in climate science, suchasclimate forecasting health anddisaster management.Innovations food security, water resources management, about climate variability available and affordable to integrate concerns improved technologies are becomingincreasingly Use soundscience andforecasting. can address theroot causesofpoverty. through theiradaptationefforts,policymakers resilience ofpoorandmarginalized communities to buildthe poor andby identifyingopportunities theneedsof changes maybe. prioritizing By to climate change, regardless ofwhatthese be aregion whichisconsiderablymore resilient particular, anAsia andPacific will free ofpoverty degree ofphysical andeconomicsecurity. In empowered, andcapableofenjoying areasonable but alsohealthy, well-educated, politically societiesareResilient notonlywealthy societies, resilient lives andlivelihoods. dignified, that underlie factors and meaningful oftime,period andgives emphasisto new the produced by aneconomy overservices afinite changes intheeconomicvalueofgoodsand emphasizes “growth” asgenerallymeasured by the development process inaway thatde- to review There isacorresponding opportunity resilience ofclimate change. inthecontext toeconomic development remains achieving key adifferenttake pathtowards green growth, . reduction Keep thefocus ondevelopment andpoverty arethese principles discussedbelow. environmentally sustainablegrowth. of Some ofabroaderto achieve inclusive effort and part climate changeshouldbeviewed asjustone requirements. This suggeststhatadaptingto applicable over thefullcontinuumofadaptation There are thatare several guidingprinciples andconfidence. security range ofconditionsandprovide highlevel of effectively function inawideof opportunities, can deliver outcomes appropriate to awiderange climate change. The latter “no-regrets” approach climatic conditions, even intheabsenceof confer benefitsunderawiderangeofpotential represent and sounddevelopment practice onspecificlocationsto thosethatimpacts from thosethatare entirely justifiedby specific adaptation mustspanacontinuumofresponses, thisregard,In approaches to climate change While economicgrowth must 38 into agriculture and 39

New andNew better to users’ needs. be appliedmuchmore effectively it by tailoring oneseasonahead,climate impacts anditcould forecasting to manage provides opportunities nature inclimate Seasonal changes variables. of of climate information regardless ofthespecific events willdeliver immensebenefitsto theusers and to usesoundscienceto respond to forecasted toforecast Improvingthe capacity climaticevents including (critically) carbon sequestration. carbon including (critically) ecosystem services, andlossofimportant diversity to pests anddiseases,susceptibility lossofspecies increased include impacts ecosystems. Important have profound natural on negative impacts in adaptation strategies. Incorporate ecosystem-based approaches environmentalinfrastructure andkey assets. national to critical understanding therisks weatherextreme events, butshouldalsoinclude ofnationalagenciesto respondthe capacity to also important. is Thisnot onlyshould include plansresponse mechanismsandcontingency Strengthening theresilience ofnational conditions. market their stock thatare better suited to changing decisionsregardingcrises, butalsoto take notonlyto respondtheir ability to short-term “robustness,” seebelow), thereby improving allows themto buildcapital(andsoenhance and sellingdecisions. to beusedby pastoralists to influencebuying climate forecasting investments are beginning climate risks. to responddevelopment ofstakeholders to scale the data for local planning and capacity hydro-meteorological database and to down- digitization ofits (PPCR)toResilience support projects underthePilot Program for Climate For instance, Nepaliscurrently implementing of theruralpoor. are sensitive interventions to theinterestspolicy to ensure thatprojectsandin decisionmaking climate variability. This requires inclusiveness greater resilience to seasonalandinter-annual capacities, andinstitutionsto enable knowledge, such measures shouldbuildonexistinglocal on section andadaptive governance,”“Inclusive resilience ofclimate change. inthe context to green achieving growth andto achieving restoring andinvesting inecosystems are key wasnoted inChapter 3thatprotecting,It thosealready significantly degraded.particularly will addconsiderablestress onallecosystems, 41 In New South South New In Wales, Australia 40 42 As discussed above inthe In the short term, this term, the short In Climate change will 43 These ,

97 Strengthening Resilience 98 Strengthening Resilience Sustainable Development, Delhi, November Delhi, Sustainable Development, 2006). Resources in theFace for Institute (Energy ofClimate Change, andtheInternational andResources Institute Phase 1Research Report Research Centre, Policies Designing inaWorld ofUncertainty, ChangeandSurprise:Adaptive Policy-Making forAgriculture andWater Source: Development forThe Energy Institute andtheInternational SustainableDevelopment, andResources Institute, theInternational Table 5.1:Elements ofadaptive policiesincrop insurance inIndia ecological benefits. sequestrationinadditionto directand carbon management includingwater quality services, both sustainablelivelihoodsand environmental reforestation andagroforestry thatcreate activities are provided opportunities byflooding. Other upstream wetlands inattenuating downstream surges, aswell asimprove theeffectiveness of andstorm ofsea-level rise mitigate theimpacts mangroveplanting new plantationscanhelp societal resilience. Forinstance, protecting or approachesas cost-effective for establishing ecosystem functions,andshouldbeexploited andenhancing benefits inadditionto preserving generate substantialeconomicandculturalco- and/or restoration ecosystems, ofcritical can including sustainablemanagement,conservation Such ecosystem-based approaches to adaptation, climate changeadaptationbenefits. social andeconomicbenefitsregardless oftheir change adaptationstrategies aswell asdelivering componentsofbroader climate can beimportant thatrestoreActivities andprotect biodiversity indexed Weather- Traditional Insurance Type of calculated index use ofobjectively eliminated by manipulation and claims - moralhazard a specificcrop than theyieldof income rather farmer’s overall - protects the High of efforts insured irrespective as yieldsare incentivesthe right but failsto provides weather conditions deal witharangeof - canhelpfarmers Low Ability toAbility adaptto anticipated einIpeetto einImplementation Design Implementation Design conditions coping capacity and enhance times recovery indices canimprove monitored weather independently triggered by - quickpayouts High sustainability and financial coverage offarmers of - failedinterms claim settlements and longdelays in administrative costs - high Low build resilient economiesandsocieties. Greener for need the greener growth, to need the also but change, have lednotonlyto discussionabout of environmental change, including climate projected andongoingeconomicimpacts numbers ofvulnerablepeopleandthescale of resources andenvironmental change. The large managing the growing related risks to thesupply faceconsiderablechallengesinPolicymakers Conclusions previously notconsidered insurable. is specificallytailored whowere to poorfarmers tested inEthiopiaandIndia. ofpolicy This type policieshavebased micro-insurance beenpilot the naturevariability. ofthis andextent Index- to climatevulnerability variability, regardless of adaptation to climatechange, to are reducing key to schemes, contributing while Insurance sharingthrough Risk insurance schemes. Table 5.1. ispresented inIndia inof theexperience transparency and simplicity while maintaining climate change unpredictable response to for automatic thresholds allows precipitation means to calculate - useofrolling High social environments natural, built,or with interaction understanding of - poor Low Ability toAbility adaptto unanticipated conditions and improvement local institutions engagement of - feedback from learning of monitoring, with formal process models of delivery out different types pilot basisby trying - implemented ona High adjustment for and learning mechanisms or informal - noformal Low 44 A summary Asummary

greater food accessandutilization. strategy for systems ensuring isalsoanimportant based onecologically viable, multicropping more labour-intensive, small-scalepractices ofstaplecrops,in theproductivity promoting increasescontinue tovital to be ensure necessary important. While intensive agricultural systems will Agriculture isanotherarea where diversification is hubs. manufacturing low-cost orincreasing competitionwithotherpartners protectionistsuch asnew policiesby trading vulnerableto shocks, areindustries particularly thathaveCountries developed onlyafew key encourage diversification oftheeconomicbase. greater resilience, domesticpoliciesshould area where diversification isimportant. To ensure not the only supply systems, but this iscertainly diversification anddecentralizationofenergy ofthe isdiscussedinthecontext Redundancy capacities . resilience andbuildadaptivesocial-ecological transitionsto green growth,support maintain be adaptive andinclusive ifitisto effectively Governance willneedtoand uncertainty. for greater complexity, incomplete understanding pursuing governance approaches thataccount Greater resourcefulness canbe achieved by toand policiescancontribute theirachievement. andnumerouspublic decisionmaking, actions These canapplyto attributes many areas of to economic, socialandenvironmental shocks. ofsocietiesthatare attributes are resilient key Resourcefulness, androbustness redundancy adaptive capacity. strategies, afocus including strengthening on ways;however, resilience building impliesspecific growth to contributes greater resilience inseveral been gainedthatcanbeappliedinthefuture. remain elusive, has muchvaluableexperience development modelsgeneric panaceas and no the Asian andPacific region. Althoughthere are ofinitiatives haveother types beeninitiated in large numbersofinnovative policies, projectsand bases. Fortunately,knowledge inthelastdecade, in theireconomies, infrastructure, institutionsand social andnaturalcapitalfostering diversity mustpay moremakers attention to nurturing prosperity.term To accomplishthis, decision more resilient and more to leadto likely long- lead to transformation—to somethingbetter, stress,choices are possible.sudden shockcanA events ofextreme is that,inthefaceofsurprising resilience. lesson innovations Akey thatsupport examples ofinstitutional, policy, andinvestment resilience,providedit number ofspecific a comprehensive of discussionofallaspects While thischapter hasnotoffered a onlyto current perpetuate vulnerabilities. serve a result, many measures are largely reactive and climate change(andsolower theirresilience). As and socialgroups lower to adaptto theirability climate change. Limited optionsfor individuals increasingly engagethosemostaffected by ecosystems. Meanwhile, must ongoingefforts based approaches, suchasprotecting mangrove to climate changemustincludeecosystem- adaptation to climate to change. adapt Efforts Finally, robustness isexplored of inthecontext 99 Strengthening Resilience

strategies thathave failedto accountfor the reflecteconomicgrowthThese challengespartly resources andclimate change. waste andpollutionburdens, continued environmental degradation, mounting areconcerns growing againstabackdropof (MDGs). Goals Development Millennium These and impede progress towards the achieving vulnerable themost This willheavily impact be the most pronounced.challenges will likely economic, resource andenvironmental forprices resources. thesecountries, converging In may sufferefficiency mostheavily from higher C challenges.equitable way willposeserious water, energy andothernaturalresources inan an erainwhichmeetingthedemandfor food, resources. As aresult, may theworld beentering rapidly expanding consumption oftheearth’s havein developing countries to allcontributed developed countries, andthecurrent rapidgrowth inpopulation,theincreaseThe rise inwealth in economic, socialandenvironmental outlook. challenges, whicharetheregion’s impacting However, alsoposessignificant thisrapidrise rates. income levels andfallingpoverty transformation hasalsobrought percapita rising trade andinvestment. The region’s economic accounting for growing levels ofproduction, is asource ofstrength intheglobaleconomy, economicgrowth,then lackluster theregion asevere firstexperiencing world recession and economic development. With thedeveloped of stories one ofthemostsuccessfulmodern oftheAsianThe rapidrise andPacific region is economic landscape and A changing policy CHAPTER 6: CONCLUSION ountries withfewountries resources andlow resource depletion ofnatural those indeveloping countries, to better face will allow economiesandsocieties, particularly management strategy. Pursuing green growth andrisk- viewed asaneconomicopportunity and sociallyinclusive development –canbe fosters environmentally sustainable, low-carbon growth –definedaseconomicprogress that achanging green development context, In benefits and opportunities Green growth: environmental limits. staying and within reducingwhile poverty expanding andincreasingly affluentpopulations, dilemma willbehow to meettheneedsof forfuture the its people. of important key A few decadesare thenext during critically make The choices thatAsian andPacific countries growth strategies. ofbusiness-as-usualabout thesustainability produce oneunitofGDP, concerns raisingserious the inputofresources to asothercountries the Asian andPacific region required three times developed countries. As in of2005,countries of theregion issignificantly lower thanthatin inmany developing countriesuse efficiency resource ofrising to therisk andresource prices; ofresources,net importers andthusareexposed resources; many oftheregion’s economiesare the lowestof percapitasupplyofmany kinds Pacific region given that:theregion possesses for concern theAsian andThis particular isof modes ofproductionthatare resource intensive. depletion andemphasized investments in costs ofenvironmental degradation andresource

101 Conclusion 102 Conclusion societies depend. of ecosystems onwhichregional economies and provide incentives for sustainable management grows,services green growth measures also and publichealth.As thedemandfor ecosystem while improving mobility, urban accessto markets (GHG) emissionsandlocalairwater pollution, planning help reduceand urban greenhouse gas For example, investments insustainabletransport development pathway andagreen economy. while hastening atransitionto asustainable environmental, economic andsocial benefits green growth measures canhelpachieve multiple Finally, by promoting integrated approaches, economic disturbances. resilience to environmental, socialand to problems)inenhancing principles are key to diagnose, andinitiate prioritize solutions the samegoal),andresourcefulness (theability (developingof pathways adiversity for achieving redundancysignificant lossofperformance), withouta system to withstand aperturbation of (theability prices. Robustness on commodity resource pressure consumptionandalleviating of adverse shocksby reducing of theintensity to greener growth canhelpmitigate theimpacts more resilient economiesandsocieties. Ashift sustainable economicgrowth canalsoleadto Policiespromote that actions and environmentally global market. region are accountingfor agrowing share ofthis while alsocreating green jobs. ofthe Countries can beasource ofsustainedeconomicgrowth, andalternative energy technologies,low-carbon emerging particular in greenand services, goods gains. efficiency Tapping thegrowing for market inmaking significant economic opportunities becoming cleantechnology leadersare finding innovations andthat arepolicy exploring on developing countries.thosecountries Indeed, attempt to impose “ecological conditionalities” Green growth shouldnot beviewed asan social inclusiveness. andsustainability, accessibility, eco-efficiency these investments of guidedby theprinciples to design a unique opportunity makers policy energy andwater supplies–offers plannersand networks,– includinghousing, transportation infrastructureinvestmentsnew intheregion the region. Furthermore, theneedfor large and are indeedalready happeningthroughout growth andagreen economy are withinreach Positive incremental changestowards green future. andresource-constrained an uncertain

The transition are internalized.social costsofeconomicactivity isnarrowed, andinwhichthegoods andservices andtheeconomicvalueofecosystemprices market inwhichthegapbetween frameworks reformed andeffective economicincentives development objectives. This willrequire withthepursuitofsustainablepatterns economies to better align economic growth To accomplishthis, there is aneedto recalibrate inclusive andresilient economies. resourcebuildsame time and atthe efficiency systemic changes thatcan dramatically improve decisionsshouldbeaimedatforward, policy to meetcurrent andfuture challenges. Moving resource alonewillnotbesufficient efficiency technological innovation andimprovements in that incremental is report messageofthis A key resource risks. better understandtheirother stakeholders balances thatwillhelpgovernmentstrade and access to resource consumptiondataandphysical alsoprovides It needsandpriorities. country’s thatcanbeadapted frameworks to each policy forset ofprinciples developing integrated guidance. outlinesanoverarchingThe report for– theneedfor +20 Rio more concrete policy discussions from thepreparatory delegates during respondsThis to report acallthathasemerged recalibrating economies thetransition, Making dimensional policy challenges. Localdimensional policy capacities canperspectives bebrought to bear on multi- burdens are equitablyshared andsothatdiverse sothatthebenefits andanyfully engagesociety ronment. Effective must institutional frameworks envi - inthepolicy anduncertainty mitigate risk andprogrammepolicy implementation,and can helpidentifyeffective solutions, improve Adaptive andinclusive governance approaches and economicpillarsofsustainabledevelopment. and tradeoffs theenvironmental, between social integration, conflicts reducing of policy policy development mustensure muchgreater levels reality. thatinfluence arrangements Institutional national to local, mustalsoadaptto achanging atalllevels,Governance frameworks from inter economic benefits. investing ingreen growth andrealizing tangible help closethe gap”“time –thedelay between financingmechanismstocomplementary

will alsorequire specificand -

on reoriented values. green economy willultimately needto bebuilt issues andsolutionswillbeneededbecausethe strengthened to create efforts awareness ofthe lifestyles. Political commitment,leadershipand gradual butsubstantial changesinbehavior and Finally, thescaleofchallengeswillrequire financial flows. must alsoplay anincreasingly role insustaining financialmarketsarrangements. Domestic increased financeandfor partnership various for andinstitutionalframeworks clear regulatory role in providingimportant incentives through green growth.that support Governmentsplay an capitalflows into thatrestrict thesectors and risks shouldfocussector onovercoming barriers the governments private andthe between action scale. Collaborativegreen atthenecessary sectors sector,private whichhasnotyet invested in increased investmentby the and participation requires ofthechallenges thescale addition, In match localized needs. must alsobebuiltto adaptto changeinways that and itslinksto resource useisoutsidetheremit An explorationofpersistent poverty, inequality for All. as theInternational Year of Sustainable Energy thesignificanceunderlines ofdesignating 2012 using biomassassource offuelfor cooking. This that by 2030,more, notfewer, peoplewillbe of clean,renewable energy, there are projections areas developing countries expanding theiruse supply, sanitation,andenergy. For example, even forpoor, urban the ruraland includingwater also bemadeto improve accessto basicservices ofagreen shouldAs transformation, part efforts greening efforts. be neededto strengthen andcomplement designedand programmes still will andpolicies directly onnaturalresources, specificallytargeted favours livelihoods thathave traditionallyrelied and themostvulnerableinsociety that impact can mitigate someoftheresource constraints is substantially reduced. While green growth ensure amoreinwhichpoverty equitablesociety on theirown, cannot, they and social benefits, Although green growth strategies offer economic reduction Green growth andpoverty

mitigate risks associatedmitigate withunemployment. risks protection programmes willalsobeneededto in a ”green” placemust be built.Social market neededto succeedjobs anddevelop theskills green advantageofnew to take countries be ready to adjust. ofdevelopingThe capacity of employment must willchange, andsociety costsinagreenshort-term transition. Patterns There mustberecognition thatthere willbe investigation.require further being usedinanequitableway to benefitpeople, questions,critical suchaswhetherresources are identify solutions. At thesametime, answers to and tomust work better understandthelinkages Economists,and socialscientistsanalysts labour and maintaininglow levels ofunemployment. challengeofcreating facealong-term jobslikely pursue capital-intensive economicgrowth will at leastpartly, thesamedrivers. that Countries resource useare andmay intimately have, linked of thisreport. Yet andinefficient inequality Thus there needs to beagreater commitment needs Thus there strategiesensure will outlook for abrighter all. thatimplementinggreen growthuncertainty that achangeisneeded, there isstillsignificant green economy. While there islittledisagreement promoted intheguiseofgreen growth ora strategies ofresource andpatterns useare not responsibility to ensure thatconventional growth However, cycle. election next alsohave they a that willnotberealized untilwell beyond the benefitswith issues onlong-term courage to take Governments willrequire vision andpolitical environmental, socialandeconomiccontexts. investments depending onspecific prioritized be carefully adapted to nationalsituationsand equally.countries Green growth strategies must thatcanbeappliedto allcommon blueprint Given of theregion, thediversity there isno prospects for sustainabledevelopment. achieving formulated isnow needed to action change the coordinatedMeaningful, andstrategically Numerous ideasandsolutionswillbeexplored. global consensusontheurgent needfor action. sustainable development. There isagrowing to secure renewed political commitmentsto when leadersareworld preparing to reconvene years the1992 after Summit,”“Earth atatime hasbeenpreparedThis twenty report nearly Final thoughts 103 Conclusion 104 Conclusion based onamore realistic economicapproach. and secure greater investment inhumancapital, challenges, suchasthefood, energy, water nexus, to closedevelopment gaps, dealwithinterlinked developed anddevelopingbetween countries financing andmeasures to establishpartnerships isneededofinnovativebe explored. Apackage must themostvulnerable to support compact developing countries. The potential for aglobal on green growth mustnotdisadvantage andthatany globaldiscussionneed support isclearthatdeveloping countriesessential. It Strengthened regionalwill alsobe cooperation actions. investment government paradigms to support steps to change important also needto take banks andlocalfinancinginstitutionswill financialinstitutions, developmentInternational to puttingpeopleatthecentre ofdevelopment. important characteristics withtheSystem of characteristics important economy-environment interface metabolism” approach to investigating the and gainsinhumanwell-being. This “industrial itsown physical growthsupport andmaintenance economic system ismetabolizingresources to flows isbasedontheconceptthatsocio- The measurement ofmaterial, energy andwater social wealth anddevelopment. (GDP), donotprovide acomplete assessmentof suchasgrossperformance, domesticproduct because standard measures of economic being more comprehensively. This isnecessary way to measure socialprogress andhumanwell- response to growing resource constraintsanda and solutions.the of part Thisimportant is an resource challenges use, aswell aspossiblepolicy economicgrowthbetween andnatural patterns economy andto explore trends andrelationships assess theflow ofnaturalresources through an andresearchersand water to allow policymakers problems. andenergy Dataonmaterial flows sources thanatthesymptoms ofenvironmental on theenvironment, lookmore closelyatthe Resource flow accounts, by focusing onpressures and resilience inAsia andthePacific. to green achieving increasingly growth important of theseflows. These considerationsare becoming the environmental, economicandsocialimpacts discarded. willalsorequire It information about manufactured andused, to are when they finally arethe timewhenthey processed, extracted, of theflow ofmaterials, energy andwater from more efficientlywill require anunderstanding local, regional, andgloballevels. Usingresources increasing strainonmany naturalresources at lifestyles inAsiamodern andthePacific are placing growthpopulation, industrial andemerging w annex 1: resource flow accounting hat isresource flow accounting? Rising 1 2 shares several Economic andEnvironmental Accounting (SEEA). policies for sustainableresource use.4, interpret flow material accountswithregard to comparability, andprovided guidance onhow to accounts toensure andinternational quality methodology for flow establishingmaterial (OECD) hasinformed thedevelopment ofthe andDevelopmentEconomic Co-operation (EUROSTAT) Office andtheOrganisationfor engagement ledby theEuropean Statistical A decadeofresearch andpublicpolicy achieve usingSEEAapproaches. isdifficulttocountries, whilecomparability betweenin datathatfacilitates comparisons the resource flow accountingapproach results economy. difference Anotherimportant isthat or “flow” ofmaterialsandenergy through an flow accountingfocuses onthethroughput, stock ofenvironmental sources andsinks, resource However, whilethe SEEA assesseschanges in the addition, greenhouse gasemissions andlocal to ofsupply. resource andsecurity availability In assessing alternative technologies withregard less obvious. accountshelpin Resource-flow uses ofthisinformation are asvitalandperhaps butother may beself-evident in nationalsecurity ofnaturalresourceThe flow importance accounts processes. elements, thatare production strategic to certain and minerals, suchasmetallicores orrare earth and use levels. Examplesincludefossil fuels to availability, dependenceonforeign resources therefore require careful attention withregard economic growth ofnationsand andsecurity Many naturalresources are strategic to the decisions.security, andpublicpolicy industrial towater inform flow national dataare important w Material,hy energy and isitimportant? 5 3

105 Annex 1 106 Annex 1 • • • • China, Europe andJapan. growth domains, withleadingexamplesin policy change mitigation,circular economy andgreen resource ofsustainable the context use, climate become increasingly recognized, however, in comprehensively demonstrated. has Their utility value isnotuniversally appreciated oreven their are accounts relatively Resource-flow new; andoverallpatterns resource demand. air pollutionare intimately tiedto resource-use Figure A1.1:Scope ofbasicmaterial ow accounts Eurostat%20MFA%20compilation%20guide%20for%202009%20reporting.pdf on3February 2011. (Luxembourg, from accessed 2009), http://epp.eurostat.ec.europa.eu/portal/page/portal/environmental_accounts/documents/ Source:

to improve theeffectiveness andefficiency toand disposalofmaterials how determine strategies would beableto tracksources, flows National integrated environment-economic in productionprocesses. efficient technologies andsubstitute materials ofthesematerials, toimpacts planfor eco- new useandontheenvironmentalthey andsocial on current andfuture suppliesofmaterials wouldCorporations have better information renewable andnon-renewable resources. better information onthesources andusesof National andstate governments would gain of benefits, includingthefollowing: tablesthatcouldprovideinput-output arange national resource flow accountsandphysical for nationalinitiatives to establishextended point presented offer inthisreport astarting The simplenationalresource flow accounts Eurostat, extracted Materials domestically economies Import fromother Economy Wide Material Flow Accounts: to the2009 Eurostat Questionnaire Compilation Guidelines forReporting INPUT 6 exchange withenvironment ECONOMY stocks at regional andnationalscale, to becomecritical accumulation ofstocks andcould, ifimplemented oninputs,flow outputsand accountsreport Similarto financialaccounts,making. resource on thisinformation for planninganddecision relynational economies. makers heavily Decision flows, andthecompetitive positionsof reserves onrevenues andexpenses,accounts report cash ways similarto financial accounts. Financial such away, resource flow accountsare inmany create astock ofcapital. When organized in remaining system the in are to quantified also oftime. period over acertain The materials emissions) thatare usedinany definedsystem materials, energy andwater (pluswaste and quantified inorder to tracktheamountof natural resource flows are organized and How doesit work? • •

used materials. andrare metals,carriers butalsomore widely not onlystrategic materials, suchas energy of monitor theuselevels andsupplysecurity could andtradedepartments National security related to thosethroughputs. throughput andthewaste andemissionrates sound information ontotal amountsofmaterial Waste andemissionpoliciescouldrely on environment. development andthe socio-economic support of resource useby changing incentives to exchange withothercountries In resourceIn flow accounting, OUTPUT disposal, etc. Air emissions,water economies Export toother mining orby-products inagriculture, are not suchasoverburdenis, in unusedextraction), that donotenter theeconomicprocess (that that becomecommodities. mobilized Materials enterprocess,that economic the is, that materials Data are presented intons andmeasure materials DPSIR framework. of the[driver-pressure-state-impact-response] correspond to “pressure” indicators inthelogic ofthemetabolismaneconomy andaspects indicators examine specificResource-use and are notreported. consumed becomeflows withintheblackbox transformationmaterial andgoodsdomestically the economy istreated asa box”;“black accumulation.Formaterial thebasicaccounts, outputs from an economic system as well as flow accounts, distinguishinginputsinto and for framework material simple accounting Figure ofthe A1.1provides anoverview sustainable development. of inthecontext planning anddecisionmaking • • • per dollarofGDP. and capita per consumption material domestic physical trade balanceand domestic extraction,

eventually will turn intoeventually waste. willturn of aneconomy, assumingthatallmaterials DMC indicates the “domestic waste potential” being released to theenvironment aswaste. before and finalconsumptionin a country refers to usedfor allmaterials intermediate (DE) andthephysical nettrade(PTB).DMC summarizes theeffects ofdomesticextraction consumption(DMC) material Domestic export. whereas aphysical tradedeficitindicates anet ofmaterials, indicates anetimport trade surplus usually move inopposite directions. Aphysical andgoods thatineconomiesmoney the fact account of taking minusexports) is, imports tradebalance (that in reverse to themonetary exports. The physical tradebalanceisdefined and information aboutphysical imports Physical tradebalance(PTB)provides ecosystems for producing renewable resources. non-renewable resources andthepressure on decline ofnaturalresource endowment for of anationaleconomy. denotes theyearly It ontheterritory extracted about allmaterials (DE)provides information extraction Domestic 7 Key indicators includetotalKey 8

Asia andthePacificAsia (REEO). for Economics Outlook And Resource Efficiency: Nations Environment Programme (UNEP)report They were prepared for primarily theUnited andJapan. institutes inChina,India with partner Research Organisation along (CSIRO) Industrial developed by theCommonwealth and Scientific presented are new. inthisreport They were for thisreport? How were material flow accounts developed data setsandstudies. be addressed inmore comprehensive national flows by economicactivity. should These aspects embodiedflows, andmaterial unused extraction, by thesebasicaccounts, includingaccountingfor flowmaterial methodologythatare notcovered analytical step. There are of several aspects profileimpact may beassessedinaseparate havematerials different qualitiesandaspecific for environmental However, impact. different the environment andmay beusedasaproxy flow indicatorsMaterial represent pressures on AsiaPacificMaterialFlows. from web database the site www.csiro.au/ at used andmethodologies employed isavailable included. Atechnical annexonthedatasources from economicgrowth andhumanwell-being. to decoupleresource useandwaste generation responses may reinforce oneanotherinaiming burdensdeal withshifting across borders. Policy of waste)trade willrequire aregional approach to natural resources andcommodities (andthe and consumption. The trade in international to current ofproduction patterns closely linked natural resource use, waste andemissionsare sharecategories many ofthesamedriversbecause areand emissions intimately linked. The two andenergymaterials andthegenerationofwaste toany note that the useof detail, itisimportant While waste andemissionsare notcovered in A1). (Table categories minerals, minerals)and12sub- andconstruction (biomass, fossil fuels, metalores andindustrial are presented for four ofmaterials maincategories countries. The data,which are available online, for 1970-2005thatcovers mostAsian andPacific data setfor flows material intensity andmaterial The accounts are basedonacomprehensive REEO report. resources may consultthe orindividualcountries to seemorenatural detailedanalysisfor certain The flow material accounts 9 Readers whowish Readers 10

107 Annex 1 108 Annex 1 • • need to be improved inthefollowing ways: More specifically, thebasicaccounts presented flows, thatis, waste and emissions. and to end ofresourcethe back dealwith security to address future challengesto resource supply and research institutes needto together work statisticaloffices use. Governmentdepartments, basesanddataonnaturalresourceknowledge develop institutionalcapacities,need to further changing economics ofresource use. Countries but farmore needsto bedoneto prepare for the futureconditions andmostlikely ofresource use, national governments aboutthehistory, current a firststep ininforming regional initiatives and resource indicators are flow accountsandkey How canthecurrent data beimproved? waste andemissionpolicies. ofresourcethe commoncharacteristics useand closing resource useandwaste loopsare someof coherence and policy and innovation, ensuring Resource pricing, promoting resource efficiency t

able anmtra aeoissbctgre items sub-categories materialMain categories Biomass osleeg aresCoal Fossil energy carriers minerals ores Metal andindustrial osrcinmnrl For concrete minerals Construction Input flows andresourceInput flows needto accounts.economic sector investment tablesand inphysical input-output to inform policies. sectoral This willrequire andactivities use inspecificeconomicsectors toNational datasetsneedto resource belinked a 1.1: Main materialMain categories ofa Wood products Grazed biomass Crop residues crops Primary Natural gas Petroleum Industrial minerals Industrial ores Non-ferrous metal oresIron For otheruses sian andPacific material flow accounts The The burdens regions. between level, environmental ratherthanjustshifting progressbe inclusive ataglobal socio-economic throughout thevaluechain. The should objective resources of andquality usedat thequantity to lookbothresource willbeimportant use. It greater wellbeing andsoundenvironmental and dividendofenhancedcompetitiveness,triple plansandprogrammespolicy andmay yielda information systems may eventually guide base and knowledge A well-developed • •

Timber Grass andhay Straw Cereals, vegetables Methane Crude oil Black andhard coal Copper, aluminium gravel Dimension stones, Sand andgravel growth agenda. andsustainability policies andprogrammes for pursuingagreen inform integrated environment andeconomic toinformation tailoring willrequire further Resource flow andresource productivity a consumptionpointofview. (embodied) flows to assessresource usefrom complemented by accountsfor indirect flows related to productionneedto be Direct accountsthatmeasure resource for recycling. flows aswell asto understandthepotential plan for future maintenance costs and waste and flows needto beappreciated to better approach. The stocks dynamicsbetween balance withinamaterial be better linked Main usesectors Main material Energy andstructural livestock and Human nutrition Energy manufacturing sectors manufacturing and the construction Strategic for materials construction forBulk materials

Fi 1 and Pacific countries, 1970-2005 f annex 2:Material consuMP tion for selected 0 – 2 – 970 gure 5.x Domes tic Ma igures 10 000 12 14 16 18 20 1 1 100 200 300 400 500 600 700 800 100 120 140 1 1 1 2 4 6 8 20 40 60 80 200 400 600 800 200 400 600 800 000 200 0 0 000 200 400 000 000 000 000 000 000 000 000 000 0 0 0 90 9518 9519 95 0020 90 197519801985 2000 1990 1995 2005 1970 19751980 19852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 005 a 2.1- ims oslFesIdsra ieasMtlOe ConstructionMinerals MetalOres Industrial Minerals Fossil Fuels Biomass a 2.30: Material consumption by mainmaterial categories for 29a R c epublic of Korea I My Thail a ndonesia China terial C n sian anmar and ons umpti and on by M Pacific countries ain Mate 10 15 20 25 30 35 40 45 50 100 150 200 250 300 350 400 450 1 1 2 2 100 200 300 400 500 600 100 200 300 400 500 600 0 5 50 500 0 0 0 000 500 000 500 rial 0 90 1975198019852000 1990 1995 2005 1970 Categ ories for Selected Asi Mo Philippines Vie Malaysia Japan ngolia t Nam a-P sian aci c C

ountr ies, 109 Annex 2 110 Annex 2 Fi – 2 – gure 5.x 10 12 14 16 18 10 15 20 25 100 200 300 400 500 600 700 800 900 100 150 200 250 300 350 400 5 (con005 10 20 30 40 50 60 70 0 2 4 6 8 0 5 50 0 0 0 90 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 Dom tinued) Iran, Islamic Republicof ims oslFesIdsra ieasMtlOe ConstructionMinerals MetalOres IndustrialMinerals FossilFuels Biomass ic Ma estic B Sr Armenia Georgia angla terial C i La nka desh onsump by tion m by ain m rial aterial catego 100 150 200 250 300 350 400 450 500 50 1 1 2 2 3 3 4 4 5 1 10 20 30 40 50 60 70 100 200 300 400 500 600 700 800 0 0 500 100 200 300 400 500 600 700 800 900 000 000 500 000 500 000 500 000 500 000 0 0 0 90 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 ries for Kazak sele Azerba Pakistan Turkey I ndia cted Asia-Pa hstan ijan ci c countr ies, 70 1970 Fi 1 : CSIRO andUNEPAsia-PacificSource: CSIRO Flow Material Database(www.csiro.au/AsiaPacificMaterialFlows) 0 – 2 – 970 gure 5.x Domes tic Ma 100 100 150 200 250 300 50 10 20 30 40 50 60 70 80 90 10 20 30 40 50 60 70 80 10 15 20 25 10 20 30 40 50 60 0 0 0 0 5 0 90 1975 198019852000 1990 1995 2005 1970 90 1975198019852000 1990 1995 2005 1970 90 1975198019852000 1990 1995 2005 1970 90 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 5 005 (co ims oslFesIdsra ieasMtlOe ConstructionMinerals MetalOres Industrial Minerals FossilFuels Biomass ntinued) Pa New Z New Uzbekistan Kyrgyzstan New Guipua New Ta terial C jikistan eal ons and umpti nea on by m ain mate 1 1 2 2 3 1 500 000 500 000 500 000 100 200 300 400 500 600 700 800 900 000 10 12 10 20 30 40 50 60 70 0 0 2 4 6 8 0 0 rial 90 1975198019852000 1990 1995 2005 1970 90 1975198019852000 1990 1995 2005 1970 1975198019852000 1990 1995 2005 1970 90 1975198019852000 1990 1995 2005 1970 categ ories Russian Russian for selected Asi Turkm Australia Fiji Federa enistan a-P tion ic c acific ountr ies, 111 Annex 2

annex 3: t *Presented indescendingorder of2005values. andUNEP,Source: CSIRO Asia-Pacific Flow Material Database(www.csiro.au/AsiaPacificMaterialFlows) able Australia Singapore New ZealandNew Kazakhstan Malaysia Korea, Republic of Korea, Republic Mongolia Brunei Darussalam Russian Federation China Turkey Turkmenistan Fiji Thailand Japan Iran, Islamic Republic of IslamicRepublic Iran, Papua Guinea New Uzbekistan Kyrgyzstan Azerbaijan Viet Nam Korea, Democratic Republic of Republic Korea, Democratic Indonesia Pakistan Philippines India Lao People's Republic Democratic Georgia Tajikistan Nepal Sri Lanka Sri Myanmar Bangladesh Cambodia a 3.1: Per capitamaterial useina data

ta B les sian andPacific countries, 1990,1995,2000and2005* 58 76 33 44.20 43.36 37.63 35.86 50 90 87 24.84 68.72 39.05 25.08 88 17 30 22.97 23.07 21.70 18.89 06 66 53 19.11 15.33 16.61 10.68 46 02 87 18.86 18.74 20.20 14.62 78 35 65 18.41 16.57 13.58 17.82 13 28 69 16.17 16.94 12.88 21.35 97 33 22 14.50 12.20 13.34 29.75 05 10 19 12.22 11.97 11.01 10.53 50 44 30 11.48 13.05 14.40 15.08 39 33 29 11.22 12.91 13.33 13.97 16 05 37 10.98 13.73 10.54 11.65 44 24 .25.71 5.12 12.44 14.46 9019 002005 2000 1995 1990 .51.61.921.02 15.09 10.96 7.45 .180 .113.68 8.91 8.03 5.01 .490 .312.09 9.93 9.06 5.34 .11.393 11.34 9.34 11.63 8.51 .179 .111.08 8.91 7.97 7.01 .889 .89.89 8.78 8.91 2.28 .657 .58.82 8.75 5.70 2.36 .832 .07.70 4.10 3.23 3.38 .727 .86.96 4.18 2.77 1.97 .340 .45.37 4.24 4.05 3.33 .744 .54.41 4.05 4.41 3.97 .448 .34.07 4.23 4.88 4.44 .033 .14.03 3.61 3.32 3.10 .919 .63.89 2.46 1.94 2.09 .225 .43.76 3.04 2.50 2.02 .120 .33.07 1.83 2.09 0.91 .326 .52.64 2.65 2.60 2.73 .226 .22.62 2.42 2.60 2.42 .117 .72.61 2.17 1.76 1.61 .515 .62.31 2.06 1.55 1.45 .817 .21.82 2.32 1.74 1.68 Materials use(tons percapita) 113 Annex 3 114 Annex 3 table a3.2:Material intensity inasian andPacific countries,1990, 1995,2000and2005* *Presented indescendingorder of2005values. isexpressed intensity asDMCperGDP(exchangeMaterial values, 2000prices) andUNEP,Source: CSIRO Asia-Pacific Flow Material Database(www.csiro.au/AsiaPacificMaterialFlows) Mongolia Kyrgyzstan Papua Guinea New Tajikistan Uzbekistan Viet Nam Nepal Kazakhstan Lao People's Republic Democratic China Turkmenistan Pakistan India Azerbaijan Russian Federation Bangladesh Iran, Islamic Republic of IslamicRepublic Iran, Indonesia Fiji Thailand Malaysia Cambodia Georgia Philippines Turkey Sri Lanka Sri Australia New ZealandNew Korea, Republic of Korea, Republic Singapore Brunei Darussalam Armenia 41 24 64 31.53 36.48 32.44 34.13 04 39 09 17.50 20.98 13.94 20.41 54 29 17 11.04 11.76 12.94 15.43 27 22 .99.42 9.39 12.21 12.79 14 .568 5.93 6.87 8.25 11.43 9019 002005 2000 1995 1990 .82.93.927.51 31.39 25.09 5.08 .31.61.214.90 13.12 14.06 2.13 .31.21.414.45 15.74 17.82 3.33 .890 04 12.92 10.41 9.08 8.68 .21.11.710.63 12.27 10.71 4.62 .172 .59.72 7.65 7.23 9.21 .31.41.99.31 15.39 15.94 5.13 .485 .67.28 7.56 8.56 8.54 .289 .76.84 7.97 8.93 9.72 .066 .76.51 6.27 6.63 2.70 .754 .55.76 6.15 5.44 5.67 .356 .35.76 5.63 5.65 5.43 .549 .05.69 5.30 4.90 5.45 .772 .94.99 6.19 7.29 8.17 .758 .54.75 4.75 5.83 6.07 .946 .14.15 3.81 4.61 4.09 .554 .03.86 4.70 5.46 1.35 .354 .23.68 4.32 5.45 4.93 .630 .82.61 2.98 3.07 3.16 .236 .72.59 2.77 3.68 4.22 .920 .51.91 2.05 2.08 2.09 .017 .51.55 1.75 1.79 1.70 .221 .51.37 1.65 2.12 2.12 .120 .90.92 2.99 2.02 1.71 .406 .40.91 0.94 0.68 1.14 .000 .00.00 0.00 0.00 0.00 – Material (kilogrammes/$) intensity .479 4.34 7.91 7.54 *Presented indescendingorder of2005values. Energy Agency.Source: International t able Brunei Darussalam Australia Russian Federation Korea, Republic of Korea, Republic Kazakhstan New ZealandNew Japan Singapore Turkmenistan Iran, Islamic Republic of IslamicRepublic Iran, Malaysia Uzbekistan China Thailand Azerbaijan Turkey Mongolia Armenia Indonesia Korea, Democratic Republic of Republic Korea, Democratic Viet Nam Georgia India Kyrgyzstan Pakistan Philippines Sri Lanka Sri Tajikistan Nepal Myanmar Bangladesh a 3.3: Per capitaenergy useina sian andPacific countries, 1990,1995,2000and2005* 9.0 3.8 1.7 383.12 316.77 338.38 293.40 1.1 1.2 4.6 254.86 241.66 218.92 215.11 4.4 7.3 7.8 202.77 175.88 177.73 248.14 8.2183 1.2189.43 118.72 138.30 188.62 6.1 8.1 9.6 166.06 196.36 180.31 167.11 5.5 6.4 7.9 162.56 173.79 167.14 150.45 8.3 5.6 3.2 160.23 231.12 255.26 183.53 2.6 3.8 3.1 156.63 134.91 138.78 224.06 5.1 17 6.1 64.50 60.11 71.78 152.51 9019 002005 2000 1995 1990 11 168 187 195.49 168.71 136.83 91.19 29 6.4 77 117.56 77.79 67.24 52.97 39 8.2 22 112.84 92.21 80.32 53.93 46 7.3 55 77.41 85.57 78.23 94.65 18 3.2 66 66.84 36.67 36.42 31.84 24 4.3 03 66.60 50.38 45.23 32.44 95 4.8 84 55.79 48.43 42.28 39.52 80 5.7 16 50.10 41.61 50.17 68.01 32 2.5 81 40.82 28.12 21.65 93.26 41 2.9 07 36.44 30.74 28.69 24.15 90 4.9 61 35.55 36.10 42.39 69.05 53 1.6 00 28.86 20.04 17.26 15.38 43 10 55 28.68 25.57 31.01 94.39 57 1.0 89 22.81 18.95 17.40 15.77 17 23 07 22.69 20.79 22.33 71.70 68 1.8 93 20.89 19.39 18.58 16.84 75 2.2 28 19.03 22.86 20.32 17.55 34 1.8 80 18.55 18.08 13.78 13.49 40 2.0 93 15.25 19.30 23.70 44.00 27 1.4 40 14.36 14.00 13.04 12.72 11 1.7 14 13.34 11.47 11.47 11.14 .4 .3 .7 7.31 5.57 5.23 4.64 e nergy use(gigajoules percapita) 115 Annex 3 116 Annex 3 *Presented indescendingorder of2005values. Energy isexpressed intensity as TPES perunitofGDP(exchange values, 2000prices) Energy Agency.Source: International t able Uzbekistan Turkmenistan Kazakhstan Mongolia Russian Federation Tajikistan Kyrgyzstan Nepal Iran, Islamic Republic of IslamicRepublic Iran, Viet Nam China Indonesia India Pakistan Azerbaijan Armenia Thailand Georgia Malaysia Bangladesh Philippines Sri Lanka Sri Korea, Republic of Korea, Republic New ZealandNew Turkey Australia Singapore Japan a e 3.4: nergy intensity ina sian andPacific countries,1990, 1995,2000and2005* 3.8198 16 67.90 91.60 119.81 130.28 9019 002005 2000 1995 1990 20 50 22 56.17 62.21 65.02 72.01 10 77 91 52.77 49.11 47.72 41.00 12 53 86 34.05 38.63 55.34 81.29 94 46 84 33.65 38.42 34.69 39.43 95 68 18 31.48 41.83 46.81 49.52 61 61 62 30.82 36.21 36.10 36.18 31 26 55 25.18 25.59 22.67 23.17 06 22 28 21.89 22.88 22.29 20.68 82 83 66 15.82 16.63 18.33 18.22 94 27 33 15.53 23.39 22.71 19.48 35 95 07 15.47 20.71 19.50 23.51 32 43 48 12.66 14.87 14.33 13.22 50 48 48 11.22 14.88 14.84 15.05 18 18 20 10.65 12.04 11.81 11.85 25 20 14 10.45 11.43 12.08 12.55 25 31 00 5.72 10.04 13.19 12.52 .147 .24.02 4.72 4.72 4.51 5.9132 92.20 153.29 156.49 – 4.0291 91.84 209.10 244.30 – 3.09.979.67 96.59 135.20 – 0.49.865.97 99.08 109.84 – 5.4184 62.25 138.42 159.34 – 83 46 60.44 74.62 98.31 – 65 99 44.59 49.92 56.56 – 4.79.530.26 91.75 147.17 – 68 52 26.86 45.25 46.88 – 77 94 22.92 39.48 67.77 – e nergy intensity (megajoules/$) t *Presented indescendingorder of2005values. Source: AQUASTAT, accessedfrom www.fao.org/nr/water/aquastat/main/index.stm on11July2010 able Turkmenistan Uzbekistan Kazakhstan Kyrgyzstan Tajikistan Thailand Iran, Islamic Republic of IslamicRepublic Iran, Australia Pakistan Armenia Myanmar Viet Nam Japan Turkey India Lanka Sri Bangladesh Lao People's Republic Democratic New ZealandNew Nepal China Russian Federation Indonesia Korea, Republic of Korea, Republic Korea, Democratic Republic of Republic Korea, Democratic Philippines Malaysia Cambodia Mongolia Fiji Papua Guinea New a 3.5: Per capitawater useina sian andPacific countries, 1990,1995and2000* 1990 6 734 3 047 2 239 2 487 2 263 987 821 589 571 440 557 417 559 – – – – – – – – – – – – – – – – – – w ater use(cubicmetres percapita) 1995 2,129 1,408 907 396 – – – – – – – – – – – – – – – – – – – – – – – – – – – 2000 5 475 2 367 2 352 2 051 1 938 1 397 1 384 1 249 1 227 920 975 724 697 636 674 632 564 555 547 499 524 417 401 396 393 388 367 319 183 88 13 117 Annex 3 118 Annex 3 t *Presented indescendingorder of2005values. Water isexpressed intensity aswater useperunit ofGDP(exchange values, 2000prices). Source: AQUASTAT, accessedfrom www.fao.org/nr/water/aquastat/main/index.stm on11July2010. able Papua Guinea New Japan of Korea, Republic ZealandNew Fiji Australia Malaysia Turkey Russian Federation Philippines Mongolia Indonesia China Thailand Lanka Sri Cambodia India Bangladesh India Bangladesh Lao People's Republic Democratic Nepal Kazakhstan Viet Nam Uzbekistan Kyrgyzstan Turkmenistan Tajikistan a 3.6: w ater intensity ina sian andPacific countries,1990, 1995and2000* 1990 0.21 0.21 0.68 1.12 0.99 1.85 1.85 1.39 3.62 4.45 5.35 6.46 5.31 water intensity (cubicmetres/$) – – – – – – – – – – – – – – – 1995 0.44 2.08 – – – – – – – – – – – – – – – – – – – – – – – – – – 2000 13.90 0.02 0.02 0.03 0.04 0.04 0.06 0.10 0.16 0.30 0.38 0.40 0.50 0.53 0.71 0.77 1.09 1.40 1.69 1.40 1.69 1.73 1.85 1.91 2.29 4.24 7.36 8.49 Zhang, Zusman Eric Simon Olsen, Romero, Jane Suzuki, Sudhiani Pratiwi Sukarno, Yoshiaki Totoki, Euston Quah, Guochu Aoki- DianaAiPing Nagata,Jorge Martinez-Navarrete, ShashiSareen, Chika Ng, Roberts, Brian Arika Fischer-Kowalski, Frank Mori, Marina Satoshi Kojima, BabarNassemKhan, Ling,Aslam Khan, Hideyuki Hayashi, Yasuhiko Hotta,Danilo Israel,Kipp, Peter Robert , Kouwenhoven, Mohammad YatsukaKataoka Elder, Bilgi, Meena IanDouglas, MagnusBengtsson, Mark Lewis SwoyambhuAmatya, Akenji, Man Shiko e Weinberger, Hansen,Katinka Munk Nayln Oo, Moon, Isgut,John Rikke Alberto Xuan Zengpei P esca ofPracticeCommunity Ojiro, Makoto SergeyPopov,Kawamata, Pavit Ramachandran, Yukihiro Shiroishi, Environment Gerhaeusser, Edes, Klaus Bhushan,BruceDunn,Bart KotaroNessim Ahmad, Bhatta,Indu Gambhir adB Jinhua Zhang FulaiRautalahti, Sheng, Tunnie Dechen Srisakulchairak, Tsering, van Jaap Woerden, Wanhua Yang, Otto, Alam,AnnaAutio,Mozaharul Elina Davies, Charles Oliveira, Suraya De Martina Chandak, Thierry uneP annex 4: re xternal experts andgovernment experts xternal officials V iewers

and

ot H er

contriB utors 119 Annex 4

endnotes 7. 6. 5. 4. 3. 2. 1. chapter 1 2. 1. a bout thereport 1 April 2011. 1 April ADB, accessedfrom www.adb.org/poverty/ on in Reduction Poverty Asian Bank, Development Nations, 2011). Pacific, United 2011(ST/ESCAP/2586)(Bangkok, Pacific, CommissionEconomic andSocial for Asia andthe United Nations, 2010). (Bangkok, Uncertainty: inanEraofGlobal Goals Development Millennium Programme,Nations Development Achieving the the Pacific, Development BankandUnitedAsian CommissionEconomic andSocial for Asia and 2011. January on28 org/files/MDG_RegionalReport20102011.pdf ESCAP, 2010),accessedfrom www.mdgasiapacific. MDG Achievement andthePacific inAsia (Bangkok, Programme,Development Paths to 2015:Priorities for Pacific, Development BankandUnitedAsian Nations CommissionEconomic andSocial for Asia andthe United Nations Environment Programme. ofthe support World HealthOrganization andthe andEastAsiaSouth-East inAugust 2007withthe these environmental changes was established in forumA ministerial to address thehealtheffects of (E/ESCAP/SO/MCED(05)/1). 2005, Seoul , 24–26March Preparatory Officials MeetingofSenior Conference onEnvironment andDevelopment, and thePacific, 2005.” to the5thMinisterial inReport Pacific, thestate of environment ofthe “Review in Asia CommissionEconomic andSocial for Asia andthe United Nations, 2010). (Bangkok, Uncertainty“, inanEraofGlobal Goals Development Millennium Programme,Nations Development “Achieving the the Pacific, Development BankandUnitedAsian CommissionEconomic andSocial for Asia and ofKorea,2005. Republic inAsiaand Development andthePacific,Seoul, by theFifth Conference Ministerial onEnvironment inAsiaand Development andthePacific, 2005,issued Preamble, onEnvironment Declaration Ministerial United Nations, 2010). (Bangkok, 2010 (United NationsPublication, ST/ESCAP/2582) andthePacific inAsia Environmental Sustainability Green Growth,Preview: Resources andResilience – and United NationsEnvironment Programme, for Asia andthePacific, Development Bank Asian United Commission NationsEconomic andSocial Economic and Social Survey of Asia andthe ofAsia Economic Survey andSocial Asia–Pacific Regional Report 2009/10 Asia–PacificReport Regional Asia–Pacific Regional Report 2009/10 Asia–PacificReport Regional

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121 Endnotes 122 Endnotes 30. 29. 28. 27. 26. 25. 24. 23. 22. 21. 20. 19. problem”,, accessed 3September 2009,ChinaDaily also X.Dingding, 2010. See common earth, “Rare from www.financialpost.com/news/ on12 August elements”, P. Koven, quotasonrare earth “China imposesexport a few countries, where isanissue. conflict renewable energy technologies, are available inonly neededforused inthebatteries hybrid vehicles and minerals,Some suchaslithium,whichiswidely outsideofconstrained supplycentres. in extraction faces supplyconstraintsdueto limited investments The demandformetalshasexpandedbut rare earth Transactions (2009),vol. 50,pp. 453–460. the consumptionofmetalsupto 2050”, Materials Ijima, Halada,M.ShimadaandK. K. “Forecasting of org/info/inf33.html canbeaccessed fromwww.world-nuclear.efforts ofongoingresearch anddevelopment A summary 2009). (Manila, and the Pacific inAsia CarbonReducing Intensity Improving and Energy Bank, Development Security less than10gigawatts Asian ineachcountry. See power, respectively, in2030,from theexisting 120 and30gigawatts ofnuclear of installedcapacity planto expandto approximatelyChina andIndia filename=Assessing%20Biofuels-Summary-Web-.pdf pdf?bcsi_scan_9688B637A46568DB=0&bcsi_scan_ pdf/Assessing%20Biofuels-Summary-Web-. www.uneptie.org/energy/bioenergy/documents/ excerpt, undated),Biofuels (Nariboi, accessed from Sustainable Production andUseofResources: Assessing United Nations Environment Programme, Towards economicdemand.rising decline,goes into permanent even inthefaceof production reaches itshighestrate, whichit after Peak oil oilisthepointintimewhen world 2011. WEO2010_ES_English.pdf on10May www.worldenergyoutlook.org/docs/weo2010/ 2010, Executive (Paris, Summary 2010),accessedfrom Energy Agency,International World Energy Outlook Textbase/stats/index.asp on15July2009. Energy Statistics, accessedfrom www.iea.org/ Energy ofKorea,from Agency,Republic International Based on2006dataforAsia, and Japan non-OECD China andIndia. energyof themajor in two the region,consumers of have alsoincreased sharply addition,coalimports In 2009). Bank, Development andthePacific forAsia Outlook Asian (Manila, BankgroupingDevelopment ofregions. See Note thatthesestatisticsare basedontheAsian on 25March 2010. who_is_downloads/raw_materials_initiative.pdf final, accessedfromwww.euromines.org/ Council, SEC(2008)2741.Brussels, 4.1,COM(2008)699 the Commission to theEuropean Parliament andthe for growth andjobsinEurope”, Communication from needs ourcritical raw initiative—meeting material Commission oftheEuropean Communities, “The Financial Post, 12July2010,accessed Energy

40. 39. 38. 37. 36. 35. 34. 33. 32. 31. change inthe Yarkant basinonnorthern River outburstfloods to climate ofglacial-lake “Response pp. 332–340; Y. Chen,C.Xu, Y. Chen, W. LiandJ. Liu, (2005)vol.Mountain Research andDevelopment 25, and the ‘elevation effect’,Himalaya”, Karakoram Hewitt, Anomaly?Glacierexpansion Karakoram “The K. increased outburstfloods. number ofglaciallake in China,glaciersare receding andhave resulted in Karakoram where glaciersare northern declining. In andeast years ormore, north asopposedto further over-ridden areas for thathave beenice-free 50 mountainssomeglaciershave theKarakoram In himachal-pradesh-3.pdf on7June2011. org/documents/books/cca-himachal-pradesh/cca- Resources 2010),accessedfrom (Manila, www.adb. in HimachalPradesh; SustainableStrategies forWater Climate ChangeAdaptation Asian Bank, Development himachal-pradesh-3.pdf on7June2011. org/documents/books/cca-himachal-pradesh/cca- Resources 2010),accessedfrom (Manila, www.adb. in HimachalPradesh; SustainableStrategies forWater Climate ChangeAdaptation Asian Bank, Development (Nairobi, Asia UNEP,South 2008). of Technology, Institute United Nations Environment Programme andAsian (New York, Asia Society, 2009). theRegion’s Challenge:Securing Next Water Future Leadership Group on Water inAsia, Asia’s Security a-preview.asp#2 on7June2011 adb.org/water/knowledge-center/brochures/awdo- ADB,(Manila, 2011),preview accessedfrom www. Forum, Asian BankandAsia-Pacific Development Water on 3February 2011. energy-demand-confronts-major-impediments/ change-and-water-scarcity-meeting-national- org/waternews/2010/world/in-era-of-climate- September 2010,accessedfrom www.circleofblue. confronts majorimpediments”, Circle ofBlue,22 water scarcity, meetingnationalenergy demand Schneider, Eraofclimate changeand “In K. 2011. on 18May despite-conservation-recycling-and-imports/ beijings-water-demand-outnumbers-supply- waternews/2011/world/off-the-deep-end- 2011, accessedfrom www.circleofblue.org/ recycling, andimports”, Circle ofBlue,3May demand outpacessupplydespite conservation, “O Ivanova, N. (New York, Asia Society, 2009). theRegion’s Challenge:Securing Next Water Future Leadership Group on Water inAsia, Asia’s Security peak-phosphorus 2011. on13May 2008), accessedfrom http://phosphorusfutures.net/ Futures, (Global Phosphorus Research Initiative, the sequelto peakoil”, inSustainablePhosphorous Stuart White andDanaCordell, “Peak phosphorous: content_8649171. htmon27August 2010. from www.chinadaily.com.cn/business/2009-09/03/ Asian WaterAsian 2011 Outlook Development ff the deep end — Beijing’sff thedeepend— water Freshwater UnderThreat:

52. 51. 50. 49. 48. 47. 46. 45. 44. 43. 42. 41. (Manila, 2009). (Manila, Sustainable Food and thePacific inAsia Security Asian Bank, Development York, 2010(New 2010). Report, Goals United Nations, Development The Millennium 2011. on 3May com.cn/cndy/2011-04/18/content_12340944.htm 18April, accessedfromChina Daily www.chinadaily. ”Food threat,E. Martin, crisis World BankchiefZoellick”, agriculture. frominstability reduced biological in diversity crops, aswellofdiseaseandecological asrisks for example genetic drift, from genetically-modified diseases, weeds andunintended transboundary fromrisks include bio-security risks Other 2011). (Manila, Asia and Developing GlobalFoodAsian Bank, Development Price Inflation 2011. on 18May Learn/world%20hunger%20facts%202002.htm accessed from www.worldhunger.org/articles/ 2011 andstatistics, facts World hunger andpoverty on 7June2010. Final_Declaration/WSFS09_Declaration.pdf org/fileadmin/templates/wsfs/Summit/Docs/ November19 from 2009,accessed www.fao. World SummitonFood Security, 16- Rome Declaration oftheWorld SummitonFood, Security 2008). Management(Bangkok, Disaster Infrastructure including that related to Development the Pacific, Cooperation EnhancingRegional in CommissionEconomic andSocial for Asia and 2010). (Bangkok, the Pacific, CommissionEconomic andSocial for Asia and a-preview.asp#2 on7June2011. adb.org/water/knowledge-center/brochures/awdo- ADB,(Manila, 2011),preview accessedfrom www. Forum, Asian BankandAsia-Pacific Development Water infrastructure andtechnology amongotherfactors. depending onclimate, physiology, demographics, made, notingthatminimumrequirements differ other recommendationsbut various have been Organization andUnited NationsChildren’s Fund, per day wasadopted in1977by the World Health recommended minimumrequirementlitres20 of cd17/basic_wate. pdfon18September 2009.A 83–92, accessedfrom www.bvsde.paho.org/bvsacd/ basic needs”, Water International (1996),vol. 21,pp. water requirements for Meeting humanactivities: household needsforpreparing food.” P. Gleick, “Basic hygiene, water andmodest for sanitationservices, on “drinking water water for for survival, human human needsat50litres perpersonday, based P. Gleickestimates thebasicwater requirement for Resources 2010). (Manila, CentralAsian Bank, Atlas Development ofNatural Asia International (2010),vol. 226,pp. 75–81. mountains, China”,slope ofKarakoram Quaternary Asian WaterAsian 2011 Outlook Development Financing anInclusive andGreen Future Operational Plan for

67. 66. 65. 64. 63. 62. 61. 60. 59. 58. 57. 56. 55. 54. 53. at alltimes, have physical, socialandeconomic access Food existswhenallpeople,on Food security Security: ofthe2009 that oftheDeclaration World Summit The present accepted is definition of food security 2011)Draft. Bank, Development the options, Pacific AsianSeries (Manila, Studies andclimate changeinthePacific:security rethinking M. Ahmed, J. Food andM.A.Sombilla, Maclean 2001). Asian Bank, Development Burden andthePacific ofMalnutrition inAsia (Manila, S. 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89. 88. 87. 86. 85. 84. 83. developing countries. response tocyclical thecrisis”, directed to support was Development of abroader“part counter- proposal for aGlobalGreen for Deal New Sustainable Affairs’Nations DivisionofEconomic andSocial theUnited agriculture andwater conservation; energy technologies, andenergy-efficient ecological renewable efficient buildings, sustainabletransport, stimulus fundsto green sectors, suchasenergy- governments to allocate asignificant share of on 6 June2010)callingon rticleID=5955&l=en Multilingual/Default.asp?DocumentID=548&A (accessedfromDeal www.unep.org/Documents. launched aninitiative onaGlobalGreen New oftheUnitedGeneral Nationsinlate 2008.UNEP Calls for aGreen camefrom Deal New theSecretary Competitiveness. Conference onGreen Productivity to Enhance 2010 Asia Productivity Organization International Face ofthe GlobalEconomic Crisis, theMarch (MSI+5) andthePacific Conference ontheHuman StatesDeveloping Small Island of Development Programmethe Barbados for ofAction Sustainable Strategy forMauritius of Further Implementation High-Level DialogueontheFive-Year ofthe Review Countries,Developed theFebruary 2010Pacific on theBrussels Programme for ofAction theLeast 2010 High-Level Asia-Pacificthe January Dialogue inAsia, Conference International onGreen Industry These forums include the September 2009 partners. the secretariat andADBUNEPaskey five haveyears since1985,withESCAPas metevery and ofdevelopment ofESCAPmembercountries This high-level forum ofministers ofenvironment [ICRAF], 2010). 100, WP0129-10 (Bogor, World Agroforestry Centre enhance environmental services”, Working Paper No. CIS paradigms for compensationandrewards to M. vanNoordwijk andB. Leimona, “CES/COS/ the Pacific 2008). 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These are conditionedon with approximately 750billion 1trillion Yen (about climate change todeveloping tackle countries announcedto 2009,Japan support On December ofenergyreforms resource insupport conservation. Law (effective andfiscal 2008) to includeprice April and theamendmentofEnergy Conservation energy sources 2006); inruralareas (effectiveJanuary hydropower, solar, biogasandotherlow-carbon renewable energy development inareas such as Law that increases capitalinvestment for and new EnergyRenewable 2009);the (effectiveJanuary in greener growth, includingtheCircular Economy Law legislationof Chinahaspassedframework to support Green Growth asanationalvision. The Government ofKoreahasadoptedThe Republic Low-Carbon para. 19(a). - E/ESCAP/1390),Chapter IV, 66/1, Resolution (E/2006/19 Council,Social 2006,Supplement No. 19. 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Conference onGreen Productivity to Enhance 2010 Asia Productivity Organization International Face oftheGlobalEconomic Crisis, andtheMarch (MSI+5) andthePacific Conference ontheHuman StatesDeveloping Small Island of Development Programmethe Barbados for ofAction Sustainable Strategy forMauritius of Further Implementation High-Level DialogueontheFive-Year ofthe Review Countries,Developed theFebruary 2010Pacific on theBrussels Programme for ofAction theLeast 2010High-Level Asia-Pacificthe January Dialogue inAsia, Conference International onGreen Industry These forums include the September 2009

9. 8. 7. 6. 5. 4. 3. 2. 11. 10. to accelerating atmospheric COto acceleratingatmospheric R. A.Houghton andG.Marland, “Contributions E. T. Buitenhuis, P. Ciais, T. J. Conway, N.P. Gillett, J. G.,Canadell, C.Le Quere, C.B. Field, M.R.Raupach, Industrial Ecology (2010),vol. 14,No. 2,pp. 185–187. resources, climate, andAsian growth” of , Journal S. Hashimoto and Y. Moriguchi, among “Linkages Countries (Paris,OECD andnon-OECD 2010). Energy Agency.International Energy Balances for picture butusuallydonotreverse it. to flow material accounts. 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127 Endnotes 128 Endnotes 36. 35. 34. 33. 32. 31. 30. 29. regional development, aswell aspromotes equity. acompetitive economy andbalanced also supports and theneedfor maintenance. Sustainabletransport account requirements for investment in capacity is affordable andoperates efficiently,taking into system isonethat cost, asustainabletransport the planet’s of terms them.In to absorb ability substitutes, andlimitsemissions andwaste within below the rates ofdevelopment ofrenewable generation, usesnon-renewable resources at or renewable resourcesbelow ator rates their of of landandemissions, uses waste andnoise. It system minimizes the use A sustainabletransport Pacific 2008). (Manila, Towards remain cleaner. Asian See Bank, Development plumbing maintenancereduced, is restrooms and the energy required to pumpwater isreduced, fitted or retrofitted. Aside from thewater savings, water savings of8percentinabuildingthatisfully intheregion,countries andcanachieve typical Waterless have urinals beendeployed inseveral 2010. asp. on12January org/Media/InFocus/2009/sustainable-infrastructure. Focus 2009),accessedfrom (Manila, www.adb. Series “Sustainableinfrastructure”, Bank, Development In broader infrastructureissuescanbefound in:Asian 2010.Asynopsisof default.asp on12January org/Documents/Books/sanitation-dbook/2008/ 2009),accessedfromfor All(Manila, www.adb. 2008:Achieving Sanitation Databook Sanitation Asian issues canbefound in:Asian Bank, Development (Tokyo,sanitation discussionof ADBI, 2009).Detailed (ADBI). InfrastructureBank Institute Asia foraSeamless Bank(ADB)Development andAsian Development from 2010through 2020for businessasusual. 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133 Endnotes 134 Endnotes 6. 5. 4. 3. presented inChapter 3. development.and lowAdetailedlistis carbon implemented policiesto foster resource efficiency andregionsA numberofcountries have Australia, andthePhilippines. China,Japan intheAsiancountries andPacific region, including accounts have alsobeendeveloped for individual dataset, whichisavailable online. flow Material European to produce a StatisticalOffice European This methodology hasalsobeenusedby the 2008). Development, (Paris, Organisation and for Economic Co-Operation Measuring Material Flows andResource Productivity 2007); andthethree volumes andsynthesisreport “a compilationguide” (Luxembourg, Eurostat, others, Economy-wide flow material accounting for useatanationallevel material are H. Weisz and The mainsources two ofguidelinesfor accounting York, 2000). Economic Accounting:Operational an Manual (New United Nations, Integrated Environmental and John Wiley &Sons, 1997). Indicators (Chichester, ofSustainableDevelopment ontheProject Indicators:Sustainability on aReport 10. 9. 8. 7. AsiaPacificMaterialFlows 2011. January on12 Flow, accessedfrom www.csiro.au/ Database Environment Programme, Research Organisation andUnited Nations CommonwealthIndustrial and Scientific Pacific Publishing, (Canberra, CSIRO 2011). Asiaandthe Outlookfor Economics and Efficiency: United NationsEnvironment Programme, Resource No. 4,pp. 676–698. consumption”, ofmaterial anddeterminants comparison country physical economy oftheEuropean Union:cross- HubacekandM.Fischer-Kowalski, H.Erb, K. K. “The H. Weisz, F. C.Amann,N.Eisenmenger, Krausmann, Communities,1999). Official Publicationsofthe for Office European (Luxembourg;Indicators inEnvironmental Reporting European Environment Agency, Material Flow-Based Ecological Economics (2006)vol. 58, Asia-Pacific Material Green Growth,

Green Growth, Resources and Resilience Green Growth,

Green Growth, Resources and Resilience Resources Resourcesand Resilience This report—Green Growth, Resources, and Resilience—describes an evolving policy landscape and Resilience characterized by a changing economic reality, rising demand for resources, increasingly Green Growth, apparent impacts of environmental and climate change, and increased risk and uncertainty. The report provides new insights into Asian and Pacific resource use trends and outlines Green Growth, Resources and Resilience Green EnvironmentalGrowth, Sustainability key actions, including reforming economic incentives and promoting more inclusive and Environmental Sustainability adaptive governance approaches, that governments can pursue to help bring economic Resourcesin Asia and inthe Asia Pacific and the Pacific growth strategies in closer alignment with the objective of sustainable development. It also Green Growth, Resources and Resilience: provides examples of strategies for improving resilience to help deal with the increasing levels Resources of risk faced by societies and economies. and Resilience The report is the product of a combined effort by three institutions: the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the Asian Development Bank (ADB) and and Resilience the United Nations Environment Programme (UNEP). It is the sixth in a series of reports prepared Environmental Sustainability by ESCAP for successive Ministerial Conferences on Environment and Development in Asia and Environmental Sustainability the Pacific, and is the third in ADB’s Asian Environment Outlook series. It is also in line with the in Asia and the Pacific mandate of UNEP to keep the state of the environment under review. in Asia and the Pacific The report provides timely support to policymakers and other stakeholders as they prepare for the 2012 United Nations Conference on Sustainable Development (Rio +20) and as they continue work to address persistent and emerging challenges on their way to more sustainable development. Environmental in Asia and the Pacific Sustainability Environmental Sustainability in Asia and the Pacific Environmental Sustainability in Asia and the Pacific Environmental Sustainability in Asia and the Pacific

United Nations and Asian Development Bank publication Printed in Bangkok ISBN 978-92-1-120635-7 February 2012 – 750