POLFREE Deliverable D2.5 Policy Options for a Resource-Efficient Economy Grant Agreement no. 308371 ENV.2012.6.3-2 - Policy Options for a Resource-Efficient Economy - Collaborative project - D2.5 Report on global governance for resource- efficient economies WP 2 – New concepts and paradigms for policies for resource efficiency Due date of deliverable: Month 16 Submission date: 30 / 01 / 2014 Start date of project: 1st October 2012 Duration: 42 months Lead beneficiary for this deliverable: UCL Last editor: Michelle O’Keeffe, UCL Contributors: Michelle O’Keeffe, Jill Jäger, Franziska Hartwig, Chiara Armeni, Raimund Bleischwitz The research leading to these results has received funding from the European Union Seventh Framework Programme (FP7/2007-2013) under grant agreement n° 308371. Dissemination Level PU Public X PU Page 1 Version 1.0 POLFREE Deliverable D2.5 Policy Options for a Resource-Efficient Economy 1. History Version Date Released by Comments 0.9 08/01/2014 Michelle O’Keeffe Circulated to POLFREE Policy Advisory Board for comment 1.0 07/02/2014 Michelle O’Keeffe Final version, submitted to the European Commission PU Page 2 Version 1.0 POLFREE Deliverable D2.5 Policy Options for a Resource-Efficient Economy 2. Table of Contents 1. History ................................................................................................................................ 2 2. Table of Contents ............................................................................................................... 3 3. Executive Summary ........................................................................................................... 5 4. Introduction ...................................................................................................................... 13 4.1. Scope and Context .................................................................................................... 13 4.2. Key concepts and definitions ..................................................................................... 14 4.2.1. Governance ........................................................................................................ 14 4.2.2. Resources ........................................................................................................... 15 5. Existing governance architecture for resources ............................................................... 16 5.1. Overview .................................................................................................................... 16 5.2. Global governance actors for resources .................................................................... 17 5.2.1. International institutions relevant to resources .................................................... 17 5.2.2. Key actors and their inter-relationships ............................................................... 22 5.3. Top-down governance mechanisms relating to resources ........................................ 26 5.3.1. Hard Law (Binding Agreements) ......................................................................... 26 5.3.2. Soft Law (Non-binding) ....................................................................................... 32 5.4. Bottom-up governance mechanisms relating to resources ....................................... 39 5.4.1. Certification Schemes ......................................................................................... 39 5.4.2. Transparency Requirements ............................................................................... 41 5.4.3. Corporate Accountability ..................................................................................... 42 5.4.4. Corporate Social Responsibility .......................................................................... 42 5.4.5. Allocation of capital ............................................................................................. 42 5.4.6. Other bottom-up initiatives .................................................................................. 43 5.5. Governance interactions ............................................................................................ 44 5.6. Summary ................................................................................................................... 45 6. Governance for sustainable resource use – building an analytical framework ................ 47 6.1. Issues associated with resource use ......................................................................... 47 6.2. Global pathways for resources .................................................................................. 48 6.2.1. Overview ............................................................................................................. 48 6.2.2. Resource groupings ............................................................................................ 49 6.2.3. Pathways ............................................................................................................ 51 6.3. Other considerations ................................................................................................. 52 6.4. Criteria for assessment of institutions and mechanisms for international resource governance .......................................................................................................................... 53 6.4.1. Legitimacy ........................................................................................................... 53 6.4.2. Feasibility ............................................................................................................ 56 6.5. Summary ................................................................................................................... 58 7. Governance for sustainable resource use – considering legitimacy ................................ 60 7.1. Legitimacy of governance in the “international trade in commodities” pathway ........ 61 PU Page 3 Version 1.0 POLFREE Deliverable D2.5 Policy Options for a Resource-Efficient Economy 7.1.1. Institutions: discussion ........................................................................................ 61 7.1.2. Institutions: assessment ...................................................................................... 62 7.1.3. Mechanisms: discussion ..................................................................................... 63 7.1.4. Mechanisms: assessment ................................................................................... 64 7.1.5. Summary assessments ....................................................................................... 65 7.2. Legitimacy of governance in the “global supply chains and transnational companies” pathway ................................................................................................................................ 66 7.2.1. Mechanisms: discussion ..................................................................................... 66 7.2.2. Mechanisms: assessment ................................................................................... 68 7.2.3. Summary assessments ....................................................................................... 69 7.3. Legitimacy of governance in the “international concern” pathway ............................. 71 7.3.1. Institutions: discussion ........................................................................................ 71 7.3.2. Institutions: assessment ...................................................................................... 79 7.3.3. Mechanisms: discussion ..................................................................................... 80 7.3.4. Mechanisms: assessment ................................................................................... 84 7.3.5. Summary assessments ....................................................................................... 84 7.4. Legitimacy of governance in the “commons” pathway .............................................. 86 7.4.1. Institutions - discussion ....................................................................................... 86 7.4.2. Institutions – Assessment ................................................................................... 87 7.4.3. Mechanisms - discussion .................................................................................... 88 7.4.4. Mechanism - Assessment ................................................................................... 91 7.4.5. Summary assessments ....................................................................................... 91 7.5. Summary ................................................................................................................... 93 8. Governance for sustainable resource use – considering feasibility in 2050 .................... 96 8.1. Feasibility assessment .............................................................................................. 96 8.1.1. A multilateral world .............................................................................................. 96 8.1.2. A coalition based world ....................................................................................... 97 8.1.3. A world of unilateral action and bilateral agreements ......................................... 97 8.2. Summary ................................................................................................................... 98 9. Conclusions and recommendations ................................................................................