Pan-European concern and opportunity at the same time: structural changes in the economy to deliver environmental and socio-economic goals

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1 CEEweb fr Bidiversity Széher út 40, 1021 Budapest, Hungary Phne: Fax: ceeweb@ceeweb.rg Pan-Eurpean cncern and pprtunity at the same time: structural changes in the ecnmy t deliver envirnmental and sci-ecnmic gals Several envirnmental and sci-ecnmic challenges threaten the wellbeing f citizens f Pan-Eurpe tday, which is a main cncern fr decisin makers als within the Envirnment fr Eurpe prcess. It is imperative t realise that structural changes are needed in the ecnmy in rder t effectively tackle all these challenges at the same time. Cnsidering the diverse characteristics and thus the ptential f the Pan- Eurpean regin, the EfE has the pprtunity and respnsibility t strive fr these changes. These prblems, their cmplex interrelatins and the ptential plicy respnses shuld be prperly discussed at the Astana Cnference in September 2011 als as a cntributin t the glbal discussins at the Ri+20 Cnference next year. In the past 20 years the 'Envirnment fr Eurpe' (EfE) prcess has becme a unique plicy making platfrm fr the pan-eurpean regin. Since its refrm 1 undertaken in 2009, the EfE has aimed t strengthen its effectiveness and ensure that it respnds t the grwing needs f the UNECE regin fully aligned with the evlving plitical and ecnmic landscape, as well as the envirnmental pririties f the regin. Ntwithstanding all the effrts made under the EfE umbrella, there are several symptms tday, which warn us that we need mre significant changes in the way we tackle sci-ecnmic and envirnmental issues n glbal 2, as well as n UNECE levels. We see wrsening trends bth in scial and envirnmental fields. Since the carrying capacity was exceeded 3, we have been accumulating eclgical debt with many-decade-lng payback perid. The results f an assessment 4 carried ut by CEEweb fr Bidiversity als clearly shw that the mst significant envirnmental threat is the ever-increasing use f natural resurces and land in Western Eurpe, which leads t several symptms, such as climate change and bidiversity lss. The rest f Pan-Eurpe is n the track t fllw this trend. These phenmena shw us that we manage ur cmmn gds (natural resurces and land) in an unsustainable way and we cannt share the benefits arising frm these resurces equitably at natinal as well as pan-eurpean levels. Even thugh these prblems have been apparent fr many decades 5, ur respnses failed 6 t tackle the prblems within the current sci-ecnmic framewrk. Therefre, structural changes are needed in the ecnmy, which can ensure that natural resurces and land are managed sustainably. The applied plicy tls shuld als cntribute t the equitable sharing f benefits frm the use f natural resurces and land within and amng cuntries as well as ensuring the sharing f respnsibility f sustainably using cmmn gds. The challenge f the veruse f natural resurces is als realized by thse Eurpean NGOs and institutins, which frmed the Resurce Cap Calitin 7 (RCC) in 2010 n the initiative f CEEweb. The RCC is cnvinced that in additin t effrts made twards resurce efficiency, abslutely limiting resurce use is necessary in rder t stay within the carrying capacity f the planet. This is essential as belw cst resurce efficiency effrts (when efficiency investments pay fr themselves) wuld nt lead t reduced envirnmental pressures alne. On the cntrary it is expected t result in grwing resurce use Glbal Bidiversity Outlk Eclgical Ftprint: ; Living Planet Index: 4 Clear View - Reginal synthesis reprt n the bidiversity challenges in Pan-Eurpe 5 Our Cmmn Future 6 Kyiv Reslutin n Bidiversity sets the target t halt bidiversity lss by

2 due t the rebund effect 8. Therefre the Eurpean Resurce Cap Calitin advcates fr limiting resurce use, which wuld als becme an imprtant tl in the transitin twards green ecnmy. CEEweb s recmmendatins fr the Astana Cnference t realise structural changes I. Discuss and reveal the interrelatins amng the sectral challenges n the level f the drivers While it is a cmmn bjective f cuntries t ensure and increase human wellbeing fr all n the principle f equitability, we cannt slve this aim as lng as we deal with ecnmic, scial and envirnmental issues separately, as past effrts have shwn. Thus the mst urgent cmmn interest f all Pan-Eurpean cuntries is t reveal the cmplex interrelatins amng the nly seemingly independent sectral challenges. Fr this aim all aspects f the DPSIR 9 framewrk (drivers, pressures, state, impacts and respnses) have t be cnsidered within the cntext f these envirnmental and sci-ecnmic prblems. These challenges, such as grwing scial inequalities and the assciated hunger and pverty, the financial and ecnmic crisis and the fragility f the financial system and the ecnmy, the envirnmental crisis including climate change and bidiversity lss, internatinal disputes ver trade, resurce use and benefit sharing are all interrelated n the level f the cultural, institutinal and structural levels f the drivers. Addressing them requires finding the mst effective interventin pints f the drivers, such as the regulatry framewrk f land and resurce use, which can greatly cntribute t tackling envirnmental, ecnmic and scial prblems. Thus CEEweb asks Natinal Delegatins t the Astana Ministerial Cnference t: Discuss and reveal the cmplex relatinships amng ecnmic, envirnmental and scial challenges with a special fcus n the level f the drivers at varius discussins during the Astana Ministerial Cnference including the plenary sessin n Greening the ecnmy: mainstreaming the envirnment int ecnmic develpment, as well as its break-ut sessins n What plicy mixes have the ptential t secure the achievement f a green, inclusive and cmpetitive ecnmy, thrugh an integrated apprach, including sectrs such as transprt, husing, energy, agriculture and educatin?, and n Hw can resurce efficiency imprve sustainability and cmpetitiveness in lcal, reginal and glbal markets?. II. Fully cnsider the essential rle f bidiversity and ecsystems in the challenges and the necessary plicy respnses Cnsidering that human wellbeing is clsely linked t the state f bidiversity and the delivery f ecsystem services n lcal, natinal and glbal levels, as well as taking int accunt the dependency f ecnmy n ecsystem services, each cuntry has the respnsibility t safeguard its remaining ecsystems and enable their recvery. Recent findings f the TEEB reprt 10 cntain several examples (e.g. cnserving frests avids greenhuse gas emissins wrth US$ 3.7 trillin glbally) n hw cnserving nature and thus essential ecsystem services cntributes t slving sci-ecnmic issues. Therefre, even if bidiversity itself is nt a pririty item n the agenda f the Astana Ministerial Cnference, CEEweb asks Natinal Delegatins t the Astana Ministerial Cnference t: discuss the rle f bidiversity and ecsystems in enhancing human well-being and ensuring the basis f all ecnmic activities under the tw themes f the Cnference, as well as carefully examine the ptential impacts f the discussed plicy measures n them, 8 Energy emergence Rebund & backfire as emergent phenmena. A review f the literature, by J. Jenkins, T. Nrdhaus and M. Shellenberger, Breakthrugh Institute, February Drivers - Pressures State Impacts Respnses (DPSIR) mdel develped by the Eurpean Envirnmental Agency 10 Mainstreaming the Ecnmics f Nature A Synthesis f the Apprach, Cnclusins, and Recmmendatins f TEEB

3 cnsider specifically the significant rle f water related ecsystems (such as peatlands, lakes and marine habitats) in climate change adaptatin and mitigatin effrts, and the need t make them part f natinal and internatinal climate change plicies, cnsider specifically the imprtant rle f water related ecsystems (such as rivers, fldplains) in green infrastructure, which shuld be taken int accunt in develpment planning within the transitin t green ecnmy. III. Discuss ptential plicy tls t realise structural changes in the ecnmy and cntribute t envirnmental and sci-ecnmic gals Transitin t a green ecnmy requires that ttal envirnmental pressures (riginating frm resurce and land use and frm pllutin) are abslutely limited and reduced t stay within the carrying capacity f the Earth. If this is nt achieved, envirnmental degradatin will cntinue. Fr this aim changing the bundary cnditins f the ecnmy and mre specifically limiting (and if necessary reducing) the resurce use f the ecnmy is inevitable, while ensuring the equitable sharing f benefits and reducing the scial differences f tday. Such a plicy respnse wuld address the drivers n institutinal level, with far reaching effects n the cultural and structural drivers behind many f the current envirnmental and sci-ecnmic prblems. Hence CEEweb fr Bidiversity is arguing that structural change is needed in the ecnmy in rder t ensure the imprvement f human wellbeing fr all, which shuld be strived fr within the EfE prcess. This is als underlined by the ambitin that the EfE shuld cntinue t serve as a mechanism t imprve the envirnment thrughut the regin, cntributing t sustainable develpment which may in turn cntribute t pverty eradicatin, t imprving quality f life, and t a safer wrld; and thus it aims t prmte linkages between envirnmental plicy, ecnmic and scial well-being and cmpetitiveness. Thus CEEweb asks Natinal Delegatins t the Astana Ministerial Cnference t: accept that setting an abslute limit t the resurce use f the ecnmy is necessary fr the transitin twards green ecnmy and addressing envirnmental, as well as sci-ecnmic gals, discuss ptential hlistic plicy tls, such as an energy quta system fr limiting resurce use. Such a plicy tl shuld intrduce an incentive system, which can ensure the access t resurces, reduce the differences in resurce use and help realising resurce efficiency investments fr all. A well designed incentive system can als bst research, innvatin and emplyment in sectrs that cntribute t the efficient and sustainable use f resurces. The fur pillars f such an energy use quta system prpsed by CEEweb 11 cvering all nn-renewable energy surces, which shuld be applied n natinal and Pan-Eurpean levels: Resurce use quta system intrduced fr each individual, public and private cnsumer. The quta system ensures the limitatin (and if necessary, the reductin) f all nn-renewable energy resurces. Thse, wh save part f their allcated annual qutas, can sell their remaining qutas thrugh the quta managing rganizatin t thse wh have cnsumed mre than their allcated qutas. The quta managing rganizatin sells the quta in the natinal currency, and buys the remaining quta fr quta mney. The market fr envirnmental gds and services is an pen market perating accrding t envirnmental and ethical rules including aspects f sustainability and market cnsideratins. The quta mney received frm selling energy qutas culd be exchanged t prducts in this ec-labelled secndary market. The Revlving Fund prvides the pprtunity fr everyne, bth energy prducers and cnsumers, t be able t achieve savings thrugh energy efficiency and renewable energy investments. The Revlving Fund prvides interest free lan 11 See mre at:

4 in quta mney with a payback perid adjusted t the energy savings r incme generatin realised thrugh the investment. The Supprt Service aims t prvide advice n lifestyle, planning, scial and envirnmental issues, as well as infrmatin n the functining f the scheme t cnsumers. IV. Fully use the ptential f Pan-Eurpean cperatin fr realising structural changes The Pan-Eurpean regin is greatly diverse in natural, cultural and ecnmic terms, as it brings tgether cuntries with very different backgrunds. The intensity level f land and resurce use, the exprt and imprt f natural resurces and gds tgether with the assciated dependency n external resurces, the use f technlgy and hw much the peple benefit frm the use f all these assets create diverse interests within the regin. These diverse interests essentially relate directly r indirectly t the use f natural resurces and land and t the benefits generated and shared frm it. In additin t the diversity f the ecnmic and envirnmental landscape these cuntries are als different frm cultural pint f view, and hw they adapt t these challenges and give respnses t them. But this diversity is a great asset when develping internatinal agreements that need t be acceptable fr all. The use f resurces and land is a glbal issue in ur glbalised wrld and cnsidering the ecsystem services they prvide n reginal and glbal levels, which need t deliver benefits in an equitable manner fr all cmmunities acrss the regin and within the cuntries. Thus CEEweb asks Natinal Delegatins t the Astana Ministerial Cnference t cnsider the added value f Pan-Eurpean and subreginal cperatin and emphasize its rle in eliminating the cmmn drivers behind emerging envirnmental, as well as sci-ecnmic issues fr the future wellbeing f all citizens in Pan-Eurpe, address the identified drivers thrugh cmmn plicy respnses, experience exchange, cmmn prjects and ther means, shw the rest f the wrld its leading psitin t tackle the drivers behind envirnmental prblems als as a cntributin t the UN Ri+20 Cnference in 2012, and thus cntribute t reaching the Millennium Develpment Gals befre the target year With enfrcing the utcmes f Astana next year in Ri, the cmmitment f all natins can be reached twards paradigm change n glbal level. CEEweb asks the Natinal Delegatins t the EfE prcess t cnsider these pints, t make prgressive steps twards a structural ecnmic change and thus t be a pineer in addressing the drivers behind emerging envirnmental, as well as sci-ecnmic issues. We cannt delay the necessary and well-thught ut respnses tday; therwise the late respnses tmrrw will prve unnecessarily painful fr future generatins in an even mre divided wrld and degraded planet!

5 CEEweb fr Bidiversity is an umbrella rganizatin f NGOs in the Central and Eastern Eurpean regin. Our missin is the cnservatin f bidiversity thrugh the prmtin f sustainable develpment.