Sustainable Consumption and Production along Global Value Chains: Trends and Focus Areas

Transcription

1 UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption & Production Sustainable Consumption and Production along Global Value Chains: Trends and Focus Areas Head, CSCP

2 UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption & Production SCP on the international agenda SCP on the international agenda SCP in global value chains Supporting the Switch to SCP

3 SCP on the international agenda International attention to Sustainable Consumption & Production Agenda 21: Develop a better understanding of the role of consumption and how to bring about more sustainable consumption patterns Roundtable on SC in Oslo involving businesses, NGOs and governments 1998 Human Development Report: Consumption for Human Development, problem analysis UN Guidelines for Consumer Protection extended by Chapter G: Promotion of Sustainable Consumption World Summit on Sustainable Development identifies changing C&P patterns as overarching theme (chapter 3) 3

4 SCP on the international agenda The four elements of the Marrakech Process Marrakech Process Organizing regional consultations in all regions to identify needs and priorities for sustainable consumption and production Building regional strategies and implementation mechanisms with regional and national ownership; Monitoring and Implementing Role of business for enabling sustainable lifestyles evaluating concrete progress programmes and exchanging and projects information and on the regional, experience at national and the international local levels; level. 10-year framework of programmes in support of regional and national initiatives to accelerate the shift towards sustainable consumption and production 4

5 SCP on the international agenda The Marrakech Process at the international, regional and national level International Marrakech Meeting 2003 Costa Rica Meeting 2005 Cooperation Dialogue Stockholm Meeting 2007 Marrakech Task Forces Regional Latin America Asia-Pacific Africa Europe Buenos Aires (2003) Managua (2003) Managua (2005) Yogyakarta (2003) Seoul (2003) Casablanca (2004) Nairobi (2005) Addis Ababa (2006) Lithuania (2004) Belgium (2004) Berlin (2005) National National Roundtables China, India (2006) South Africa, Brazil (2007) 5

6 SCP on the international agenda Strategies for SCP Governments Production Europe Consumption Mainstreaming Extension Preparation Agenda Setting 60s 70s 80s 90s 00s 6

7 UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption & Production SCP on the international agenda SCP in global value chains SCP in global value chains Supporting the SWITCH to SCP

8 SCP in global value chains Ecological footprint and human development High demand on biosphere per person Developed Countries leap Sustainable Development frogging t ra Minimum acceptable level of Human Development High demand on biosphere per person Low human development World average biocapacity available per person Human Development Index di tio Developing na Countries l Within carrying capacity Low human development Ecological Footprint per person Source: adopted from WWF

9 Ecological footprint and HDI Baltic and Eastern European countries 2003 Developed Countries Development of Baltic / Eastern European average 1975 Human Development Index Developing Countries Ecological Footprint per person Source: Global Footprint Network

10 Ecological footprint and HDI Baltic and Eastern European countries Lithuania Estonia Russian Fed. Czech Rep. High demand on biosphere per person Poland Bulgaria Developed Countries Sustainable Development Latvia Minimum acceptable level of Human Development Romania Hungary Belarus Ukraine Rep. Moldova High demand on biosphere per person Low human development World average biocapacity available per person Human Development Index Developing Countries Within carrying capacity Low human development Ecological Footprint per person Source: Global Footprint Network

11 SCP in global value chains Resource Consumption in different Countries 11

12 SCP in global value chains Increasing evidence for burden shifting an European Perspective European consumption global burden Global systems of production and consumption lead to rising resource extraction in developing countries... Source: Wuppertal Institute 12

13 SCP in global value chains Burden shifting: Inequalities along global value chains Industrialised countries ~ 20% of ecological backpack ~ 80% of value added Resource Extraction Producers Retailers Consumers End-of-life Managers Developing countries ~ 80% of ecological backpack ~ 20% of value added 13

14 SCP in global value chains Opportunities in value chains Potential contribution to sustainability Sustainability impact along value chains high low Raw material extraction Supplier production In-house Distribution production Usage Value Chain 14

15 SCP in global value chains Management focus in value chains Management Response Current management efforts Focus of current management effort high only ad hoc and sporadic management low Raw material extraction Supplier production In-house Distribution production Usage Endof-life Value Chain 15

16 SCP in global value chains Opportunity for resource efficiency Classic mismatch between opportunities and efforts highsustainability in the supply chain? Policy, performance and reputation opportunities Sustainability during consumption? low 80% of overall efforts focus on 20% of the total risk Natural Natural Transportation Manufacturing Manufacturing Transportation Resources Resources sites Product Distribution distribution Consumption Consumers Value Chain 16

17 SCP in global value chains SME in developing countries Expenditures including merchandise Cost structure of micro-enterprises : 10% 7% Costs for material & energy 3.6 as high as salaries paid. Premises Machinery maintenance 36% Materials 26% Merchandise for sale Salary 42% Resource efficiency can strengthen local enterprises Water, Electricity 10% Other 4% 1% 17

18 SCP in global value chains Opportunity for resource efficiency Classic mismatch between opportunities and efforts high Policy, performance and reputation opportunities Sustainability during consumption? low 80% of overall efforts focus on 20% of the total risk Natural Natural Transportation Manufacturing Manufacturing Transportation Resources Resources sites Product Distribution distribution Consumption Consumers Value Chain 18

19 SCP in global value chains Lifestyles in different countries Germany Bhutan 19

20 SCP in global value chains Consumption Cluster material intensity per capita per year hidden material backpack 76 tonnes = 100 % others 11 community 6 leisure 13 education 5 health 9 clothing 6 food 20 residence earthunconverted displacement materials mineral raw fossile materials fuels biological raw materials 29 tonnes 10 per capita erosion visible material load source: Wuppertal Institute 20

21 SCP in global value chains Housing: The right for more energy efficient housing In countries of temperate and cold climates, typically 80-90% of total life cycle energy use in housing is consumed during the use phase of a building s life. Energy use in the use phase of housing is typically 80-90%! Distribution of energy use in housing use phase in % Potential energy efficiency lies in electric appliances and lighting. Source: Enerdata (2004) in EEA (2006) 21

22 SCP in global value chains Mobility: The right to have affordable low-carbon mobility Use phase is the most important lever for change in private road transport! CO2 emissions over the life-cycle of a vehicle Source: WWF-UK Evidence Base

23 SCP in global value chains Global Consumer Class in Asia The GCC a new lower middle-class Source: Territory size shows the proportion of all people living on PPP US$ a day (US$ / year) worldwide, that live there. 23

24 SCP in global value chains Fostering new markets Base of the Pyramid Traditional Role offocus business for enabling sustainable lifestyles business High income Middle class Anwara Begum, a Grameen 'telephone lady' (Credit: Nurjahan Chaklader) Neglected markets Go for inclusive consumption? Poor / extreme poor Base of the Pyramid = 4 billion customers 24

25 SCP in global value chains Tapping the Fortune at the Base of the Pyramid 25

26 UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption & Production SCP on the international agenda SCP in global value chains Supporting the SWITCH to SCP Supporting the SWITCH to SCP

27 Supporting the SWITCH to SCP MACRO Support research and concept development Enabling framework and policy implications Implementation tools and instruments Pilot project implementation and monitoring MICRO Dialogue platforms and network building Best practice assessment and exchange Combine macro- and micro elements! 27

28 Supporting the SWITCH to SCP MACRO Support research and concept development Enabling framework and policy implications Implementation tools and instruments Pilot project implementation and monitoring MICRO Dialogue platforms and network building Best practice assessment and exchange Combine macro- and micro elements! 28

29 Supporting the SWITCH to SCP Building a supportive knowledge framework Internal focus Measure Cl. Prod. Assessm. Stakeholder focus Product chain focus Env. Cost. Account. Life Cycle Assessment Management System Life Cycle Design Performance Evaluation Communicate Supply Chain Management Sustainability Reporting Source: CSCP/Wuppertal Institute 29

30 Supporting the SWITCH to SCP Building a supportive knowledge framework Accounting for Consumption Individual level Individual resource budgets for awareness raising Comparison my parents, me, my kids... me at different lifetimes What impacts does my consumption have? How would this change if...? Scenarios: Individual consumption decisions 30

31 Supporting the SWITCH to SCP MACRO Support research and concept development Enabling framework and policy implications Implementation tools and instruments Pilot project implementation and monitoring MICRO Dialogue platforms and network building Best practice assessment and exchange Combine macro- and micro elements! 31

32 Supporting the SWITCH to SCP The role of financial support models Financial support matters... Directly Lack of funding / credit restrictions as a barrier to realising SCP Overcome short-term perspective of SMEs Technology transfer depends on funding availability Role of business for enabling sustainable lifestyles Financial institutions role in setting the framework for SME operations Indirectly Financial institutions assessment of business success (e.g. considering environmental responsibility considered as better risk management) Diffusion of SCP concepts through credit officers, investment guidelines, technical specifications,... Self-interest to support financially viable environmental or social entrepreneurs 32

33 Supporting the SWITCH to SCP The role of new financial models SCP-funds for SMEs? Example: TMB Bank Advice on investment planning to projects on energy conservation, environmental management, innovative projects, business for social concern, etc. Financing in following programmes: Ozone Project Trust Fund Credit for Investment in Biogas System Grant to SMEs for new non- CFC Loan for biogas technology in equipment & working capital loan industries such as tapioca, palm for using new technology and huge pig farms Credit for Waste Treatment Loan for investment in factory waste treatment and use of cleaner production technology 33

34 Supporting the SWITCH to SCP The role of Marketing UNEP on Sustainable Marketing talkthewalk.net Manual Advancing Sustainable Lifestyles through Marketing and Communications How can marketing foster sustainable consumption? How companies do it: Case studies How can I do it? Tips, tools and resources Online database of ads for sustainable products 34

35 SCP in sectors and companies Matching sectors and field of demands fields of demand sectors Mining Agriculture Manufacturing Logistics Business services Consumer services Retail... Current focus of policy makers and businesses Multiple relationships No clear matching of sectors and fields of demands Promote sector co-operation in fields of demand? Nutrition Housing Clothing Tourism Mobility Communication... Behaviour change on consumer level needed! 35

36 Supporting the SWITCH to SCP MACRO Support research and concept development Enabling framework and policy implications Implementation tools and instruments Pilot project implementation and monitoring MICRO Dialogue platforms and network building Best practice assessment and exchange Combine macro- and micro elements! 36

37 Supporting the SWITCH to SCP Determining factors Soft Building a supportive policy framework Consumer Advisory Services Sustainability Reporting EcoLabelling Voluntary agreements Subsidies Hard SCP Monitoring Certificate Trading Fees and User Charges Technology Transfer Research and Development Norms and Standards Reward / Penalise Information Centres Green Public Procurement SCP Taxes SCP Liability Education and Training for SCP Finance mechanisms Motivate Support Government strategy 37

38 Integrate public policy and business strategies Dialogue between businesses and policy makers Example: Resource efficiency 1. Phase: Preparation 2. Phase: Extension 3. Phase: Mainstreaming Environment Early environmental concerns about resource consumption Resource efficiency key to wide range of environmental issues Economy Resource efficiency as cost issue for enterprises Resource efficiency innovation for enhancing competitiveness Finance Singular economic instruments to promote resource efficiency Research Technical solutions and potential for resource efficiency Resource efficiency as a driver for structural innovation Environmental reform of fiscal systems, covering all instruments Consumer Protection Consumer responsibility for reaching resource efficiency 38

39 Supporting the SWITCH to SCP Opportunities and challenges Next steps Include SCP in policy making Include SCP in business & investments Challenges Enable Sustainable Consumption Tangible and visible project results Towards SCP Up scaling of project results Develop financial models for SCP Strengthen national policy instruments 39

40 UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption & Production Thank you for your attention!!! CSCP Fon Fax

41 SCP on the international agenda SCP in the EU EU SCP Action Plan (of the DG Environment and the DG Enterprise)...Build on, bring together, and improve coherence of existing policies... Leveraging Innovation Lead Market Initiative, Networking Of Innovation Stakeholders Better Products Dynamic Performance Requirements, Sustainability Labels, Eco-Design Instruments, Standardisation Leaner And Cleaner Production Resource Efficiency Targets, Eco-Innovation and Environmental Technologies, Review of EMAS, SMEs Smarter Consumption Retailer agreements, Market-Based Instruments, VAT rates, EU Eco-Label, Advertisement, Green Procurement, Global Markets Timeline Towards a Green Paper Background Document released Consultation process ongoing Communication In 2008 Based on consultation Exploiting first mover advantages and leveling the playing field worldwide for sustainable technologies and products 41

42 Supporting the SWITCH to SCP Modes of engagement online repositories for SME tools Reference publications, newsletters, guidelines Helpline / expert networks Information clearinghouse Databases (listing technologies, products and services, providing institutions) On-site visit and audit Consultancy services (feasibility studies, finance models, legal advice) Seminars, trainings, workshops, symposiums Trade fairs and exhibitions Demonstration projects Fact-finding tours Local business networks Easy access to range of targeted and tested tools Different level of complexity and resource requirements Avoid one-fits-all, but consider different customer-groups and project setups 42

43 Models for poverty-oriented SCP Models for addressing key challenges Providing access to products and services food health construction Developing innovative products and services energy sanitation footwear Knowledge and education finance textile & apparel Infrastructure and good governance Create local income 43

44 Environment and developments in global value chains Asian countries High demand on biosphere per person Sustainable Development Developed Countries Minimum acceptable level of Human Development China India Role of business for enabling sustainable lifestyles Human Development Index World average biocapacity available per person Developing Countries Myanmar Cambodia Laos Nepal Bangladesh Within carrying capacity Low human development Ecological Footprint per person Source: Global Footprint Network

45 Supporting the SWITCH to SCP... a common learning process Mutual learning Experience Framework European Asian Environmental awareness Management traditions Sustainability Management Local institutions, norms, values Tools and instruments Asian economic success story European Asian Import- and export Tangible and visible regulations Role of business for enabling sustainable lifestyles improvements Demand for Local capacity sustainable development products Political framework Technological conditions cooperation Learning processes 45

46 UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption & Production Introducing the CSCP Introducing the CSCP SCP on the international agenda Environment and global value chains The SWITCH to SCP

47 Introducing the CSCP Organisational Setup CSCP UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production (CSCP) A collaboration by Wuppertal Institute UNEP for Climate, Environment and Energy United Nations Environment Programme Supported given by NRW North Rhine-Westfalian Ministry for Environment, Agriculture and Consumer Protection German state Federal Ministry for Economic Cooperation and Development Wuppertal Federal Ministry for the Environment, Nature Conservation and Nuclear Safety Business and Employment Support Agency 47

48 Introducing the CSCP Consumption, production and policy choices Resource Extraction Companies Consumption choices Finance Institutions Producers Production choices Supply Companies Demand & Governments Retailers Consumers & Consumers End-Of-life managers Others Policy choices Local and National Development 48

49 Introducing the CSCP Thematic approach 49

50 Introducing the CSCP Strategic Priority Areas Awareness-raising and capacity-building for governments; Collaborating with local sustainable development agencies; Incorporating SCP into micro- and development finance. Encouraging sustainable lifestyles; Communicating SCP to consumers effectively; Strengthening role of government in promoting lifestyles. Encouraging SMEs to engage in SCP activities Guiding industry sectors on their role to achieve SCP Exploring an effective, market based instrument mix for promoting SCP along global value chains 50

51 UNEP/Wuppertal Institute Collaborating Centre on Sustainable Consumption & Production SCP on the international agenda SCP on the international agenda SCP in global value chains Supporting the Switch to SCP

52 SCP in global value chains Opportunity for resource efficiency Classic mismatch between opportunities and efforts highsustainability in the supply chain? Policy, performance and reputation opportunities Sustainability during consumption? low 80% of overall efforts focus on 20% of the total risk Natural Natural Transportation Manufacturing Manufacturing Transportation Resources Resources sites Product Distribution distribution Consumption Consumers Value Chain 52