Recommitting to Sustainable Growth CONFERENCE HIGHLIGHTS Friday, 15 April 2016 • the Ritz-Carlton, Millenia Singapore
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3RDRD SINGAPORIINGAPORENGAPOR DIALOGUE LOGUELOGUE ONON SustainableSustainable WorldWorld ResourceSResourceS Global Consensus, Regional Actions: Recommitting to Sustainable Growth CONFERENCE HIGHLIGHTS Friday, 15 April 2016 • The Ritz-Carlton, Millenia Singapore 3RDRD SINGAPOREIINNNGGAGAPPOPORPOREOREORE DIALOGUEIIAAALLOLOGUE ONN SustainableSSuussttaiinanablble WWoWorldorrlld RReResourceSessoouurrcceeS KEYNOTE SPEAKER: Mr Masagos Zulkifli Bin Masagos Mohamad Global Consensus, Regionali l AcƟons: Minister for the Environment and Water Resources, Singapore Recommiƫng to Sustainable Growth PANEL KEYNOTES: Mr Nazir Foead The case for sustainable business is now clearer than ever. Le Head, Peatland Restoraon Agency, Indonesia unchecked, the exploitaon of resources will have profoundly Dr Muliaman Hadad negave impacts on the environment and vulnerable communies Chairman, Financial Services Authority (OJK), Indonesia across ASEAN. PANELLISTS: Mr Bian Zhenhu In 2015, the Paris climate conference saw 195 countries adopng President, China Chamber of Commerce for Import the first-ever universal, legally binding global climate deal. At the & Export of Foodstuffs, Nave Produce and Animal By-Products same me, ASEAN countries experienced one of the worst Professor Wang Yao transboundary haze episodes since 1997. Forest and peat fires Deputy Secretary General, across Indonesia led to months of smoke haze and affected at least China Green Finance Commiee, China Finance Society six of the ten ASEAN countries, extending even to southern Thailand Dato’ Dr Makhdzir Bin Mardan and Vietnam. Oil palm and pulp and paper companies, together Chief Execuve, Malaysian Palm Oil Associaon with their financiers, smallholder farmers, office-holders, and Mr Anderson Tanoto law-enforcers, were placed squarely in the spotlight. Director, Royal Golden Eagle Dr Petra Meekers With growing global consensus on climate change acon, it is all the Director of CSR and Sustainable Development, more urgent that industry, regulators, and policymakers Musim Mas Holdings consolidate the lessons learnt and best pracces for sustainable Mr Thirawit Leetavorn resource management. Senior Execuve Vice President, Double A (1991) Public Company Limited As a leading, independent and not-for-profit think tank, the Ms Judy Hsu Singapore Instute of Internaonal Affairs (SIIA) is a recognised Singapore Chief Execuve Officer, Standard Chartered Bank thought leader on various topics including the haze and resource Mr Hervé Simon sustainability in the ASEAN region. Group Markeng Director, Ayam Brand Mr Stephan Lynen On 15 April 2016, the SIIA hosted the Third Singapore Dialogue on Head of Region (Asia Pacific), Industrial & Consumer Speciales, Clariant (Singapore) Sustainable World Resources (SDSWR) at The Ritz-Carlton Millenia Singapore, bringing together over 300 policymakers, corporate Mr Irwan Gunawan players, acvists, academics, and journalists. The Dialogue Deputy Director, WWF Indonesia addressed quesons such as: Ms Isabella Loh Chairman, Singapore Environment Council How can we reconcile different stakeholders and their compeng Mr Hendry Predy Yang Palm Oil Coordinator (South & South East Asia), land uses? What are some best pracces for increasing sustainable Solidaridad Network farming pracces among smallholders? How can we increase Mr Hj. Narno demand for eco-labelled products among consumers? What can Group Manager, Amanah Associaon ASEAN’s financial regulators glean from the experiences of China and Indonesia? MODERATORS: Associate Professor Simon Tay This report aims to capture the key messages from the Dialogue. We Chairman, Singapore Instute of Internaonal Affairs would also like to thank our key sponsors Double A (1991) Public Mr Nicholas Fang Company Limited and Musim Mas Holdings; our partners Cargill Execuve Director, Singapore Instute of Internaonal Affairs Tropical Palm and Temasek Holdings; supporng organisaon IE Ms Lee Chen Chen Director, Policy Programs, Singapore; and official broadcaster Channel NewsAsia. Singapore Instute of Internaonal Affairs Third Singapore Dialogue on Sustainable World Resources 1 PANEL 1 Sustainable Land Use: What Governments and Companies Can Do Sustainable land use: What Governments AND Companies CAN DO For almost two decades, transboundary tends to be favoured for its lower cost and haze polluon from Indonesia’s forest fires higher efficiency as opposed to mechanical has affected its ASEAN neighbours, means. These fires – especially fires on dry especially Malaysia and Singapore. 2015 peatland – oen give rise to smoke haze. witnessed one of the worst haze crises on record, as some 2.6 million hectares of Indonesia recognises the importance of a forest and farmland in Indonesia were producve yet sustainable landscape. It has burned from June to October. At least six of commied to reduce its greenhouse gas the ten ASEAN countries were affected, emissions by 2020, increase the protecon including Thailand and Vietnam. of land and forests from fires and illegal logging, and restore and protect peatland. Transboundary haze polluon carries The Indonesian government now substanal costs. The World Bank, for acknowledges that solving the issue of fires instance, placed the cost to Indonesia at necessitates shiing focus from suppression about US$16.1 billion, or 1.9% of its to prevenon, which is both cheaper and predicted 2015 Gross Domesc Product more effecve. (GDP). Daily carbon emissions from Indonesia’s fires also exceeded those from At the Paris climate conference (COP21) in the US on 26 days from September to December 2015, Indonesian President Joko October 2015. The economic cost to Widodo (Jokowi) announced plans to Singapore stands at about US$515.3 million establish a Peatland Restoraon Agency (S$700 million). Yet, haze polluon is merely (BRG) which was later formalised in January a reflecon of a deeper and ongoing 2016. In his first overseas address, Mr Nazir problem: the unsustainable management of Foead, Head of BRG, outlined the agency’s resources, parcularly with regards to land plans to restore peatlands damaged by and labour relaons. forest fires. His insights drew significant media aenon and coverage, including In Indonesia, land is oen cleared using fire, The Straits Times and Channel NewsAsia. known as the ‘slash-and-burn’ method, to make way for culvaon. While the use of fires to clear land is naonally outlawed, it 2 Third Singapore Dialogue on Sustainable World Resources I cannot emphasise more how seriously Indonesia is preparing acons to prevent fires from happening…We put a lot of effort and budget into migaon of the fires, but too lile in prevenon. This is changed now. MR NAZIR FOEAD Head, Peatland Restoraon Agency, Indonesia At the same me, Singapore is commied to aims to share informaon, best pracces on fire addressing the “commercial roots of transboundary migaon intervenons, and potenally resources to haze” by pursuing errant companies under the address Indonesia’s persistent fires and haze. Transboundary Haze Polluon Act (THPA), said Mr Masagos Zulkifli, Singapore’s Minister for the Even as local communies are roped in to help Environment and Water Resources. The Act prevent fires, it is also vital to resolve social conflicts aributes liability to enes that conduct or condone arising from unclear land ownership and an act which causes or contributes to haze polluon responsibility. One soluon is to rezone the conflict in Singapore. Malaysia is also considering to enact a areas, said Mr Foead. By establishing clear land similar law on the haze. rights, the local people will have an incenve to protect the land while making producve use of the Some companies are also shiing their emphasis to land to plant crops. fire prevenon. For instance, Asia Pacific Resources Internaonal Holdings Limited (APRIL), Royal Golden Some companies have also integrated small-scale Eagle (RGE)’s pulp and paper company, has launched farmers into their supply chains. In fact, smallholders the Fire-Free Village Programme, which seeks to account for almost 40% of Asian Agri’s total palm oil prevent fires by focusing on community engagement. producon. Asian Agri is part of a group of companies Aer successfully reducing the amount of burned managed by RGE, which works with one of the largest areas in its pilot project, the programme expanded to smallholder groups in both its palm oil and its pulp cover more villages. Based on the lessons learned and paper businesses. The company believes in from implemenng the Fire-Free Village Programme, collaborang with its farmers to socialise its APRIL also formed a Fire-Free Alliance (FFA) in early sustainability policies and works closely with them on 2016. FFA is a voluntary mul-stakeholder group that implementaon. Third Singapore Dialogue on Sustainable World Resources 3 PANEL 1 Sustainable Land Use: What Governments and Companies Can Do Moreover, companies such as Double A (1991) Public Company Limited demonstrate that alternave methods of growing crops, other than on plantaons, can prove financially successful and environmentally sustainable. The Thai pulp and paper company works with farmers to grow trees along the edges of their rice paddies, providing them with an addional source of income. It is also engaging villages to grow trees on their unused land, with villagers having the freedom to decide how to use the funds MR ANDERSON TANOTO generated. These two programmes provide about 30% to 50% of Director, Double A’s wood sourcing. The rest of its sourcing is derived from Royal Golden Eagle reserved plantaon areas. The crux of the problem is Sll, these