The UN Forum on Sustainability Standards (UNFSS) Intergovernmental Forum of Dialogue on Voluntary Sustainability Standards

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1 The UN Forum on Sustainability Standards (UNFSS) Intergovernmental Forum of Dialogue on Voluntary Sustainability Standards ICCO Economics Committee London, September 25, 2013 Christoher Wunderlich: UNFSS coordinator

2 United Nations Forum on Sustainability Standards (UNFSS) 2 Objective: Effective forum for policy-makers to better understand voluntary sustainability standards (VSS) and be able to utilize VSSs as potential tools to support their own sustainable development strategies and goals. Steering Committee: 2

3 Key driver: VSS- Market Impact 3 3 Recent Average Annual Growth Rate of Key VSS Markets: Global US High-value 5-10 % 10+ % Organic % % Fair Trade 35 % 40 % Utz Certified 30 % -- Rainforest 105 % 120 % Conventional Food Markets 2-4 % 3-5% Source: State of Sustainability Initiatives, 2011

4 Geographical distribu2on of sustainable cocoa cer2fica2on, 2011 (mt) Source: State of Sustainability Initiatives (SSI)

5 Sustainable cocoa produc2on vs. sales, global Annual growth rate in production: 55% from Total volume certified in 2011: 349,504mt (8% of global production) Total volume sold as certified in 2011: 143,514 (3% of global production) Source: State of Sustainability Initiatives (SSI)

6 KEY INDICATORS: Certified vs. Uncertified Economic Perception Training 105% Yield Recycling Crop Waste 63% 68% 17% Price 13% Conservation Measures 90% 36% 35% 36% Revenue Protective Gear 53% 58% Net Income Food Security Education Sample: 9 countries, over 4,000 farms, 2 crops (coffee/cocoa) with control groups ( )

7 Level Farm National/ Sector Potential Benefits of VSS as tools, to improve: Management capacities Productivity and quality Reduce costs Market access Commercial relationships Premiums- sometimes Export revenues Jobs Processing and services Economies of scale and innovation Positive spillovers Enfranchise marginalized groups Enhanced soil fertility, water quality, biodiversity etc Source: Draft Decision-making guide: Trade Standards Practitioners Network (TSPN), International Institute for Environment and Development (IIED)

8 Potential Concerns: Policy Level (Producer Countries) Market Access: Threat to market access Sustainability used to protect domestic markets Standard-setting: External non-state actors setting standards Threat to national sovereignty (exclusion from standard-setting) Whose sustainability (democratic national governments or distant consumers/brands)? Standards applicability: Standards/criteria/processes, potentially inappropiate to local situation Too stringent for producers and local institutions capacities Inflexibility to adapt to local realities (lack of appreciation for cultural/geographical/ social diversity)

9 Pro-active Role of Developing Country Governments 9 9 Surveillance, Supportive and Facilitating Role Assuring policy coherence Facilitating Investment Devising flanking/ support policies Governance / Standardsetting Facilitating stakeholder dialogue

10 UNFSS Structure: 10 Members of the UNFSS 10

11 Action areas identified Decision-Making Tool Flagship Report on VSSs Impact Assessment Preliminary Activities of UNFSS: Details Interactive tool to increase policy-makers understanding of and ability to use VSS to achieve public development goals 1 st publication on Key Issues and Initiatives- posted on ICCO webpage) Linked to existing programs-working Group 11 Capacity building activities Harmonization and equivalence Emerging standard initiative National and regional committees linked to UNFSS Linked to existing programs-working Group WG- to reduce complexities and lower transaction costs WG- focusing on supporting pro-development aspects Beginning in ASEAN region 11

12 Results from ICCO Workshop (UNFSS statement): VSS- Increasingly important trade and development issue. Benefits but also important challenges, a potential tool for sustainable development but challenges must be addressed. Governments should play a proactive role (ICCO can lead), including: Understanding the impacts (real costs and benefits) View VSS within a broader national development strategy and context. VSS need to be comprehensive, have results-based criteria and processes, integrate efficient and effective training programs.

13 13 13 Results from ICCO Workshop (UNFSS statement cont.): Standards programs must continue and further expand cooperation to harmonize approaches and lower complexity and costs of becoming certified. Funding mechanism to support process a possibility (ie. sustainability fund). ICCO perhaps best placed to effectively manage such a fund. Costs and benefits must be equitably shared, with farmers net incomes sufficient to incentivize sustainable farming practices, provide a living wage and for farmers to continue farming cocoa. Sector level coordination and cooperation critical- ICCO convening/guiding. UNFSS open to supporting and partnering with ICCO and its members.

14 Partnering, ICCO and UNFSS: 14 14

15 15 Thank You! For more information: Website: Support for the UNFSS provided by: 15