Sustainable Consumption and Production - A Handbook For Policymakers

Released on World Environment Day 2015
Copyright United Nations Environment Programme, 2015

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Sustainable Consumption
and Production
A Handbook for Policymakers
Global edition
Contents
Foreword 3
Acknowledgements 4
List of Acronyms 5
Introduction 7
Part A : AN INTRODUCTION TO SCP POLICY
8

1 Introduction to Sustainable Consumption and Production (SCP)
9
1.1 Defining SCP 10

1.2 Why is SCP important for sustainable development?

12

2 The Fundamentals of SCP 33

2.1 Linkages between poverty reduction and SCP
34

2.2 Life-cycle thinking and a systems approach
37

3 The 10YFP and International Collaboration on SCP
47

3.1 The evolution of SCP in international policy
48
3.2 International collaboration on SCP 53

4 Policy Development 61
4.1 The policy cycle 62

4.2 Policy tools and instruments for SCP
68

5 Policy Implementation 79

5.1 Obtaining political support and mainstreaming the SCP agenda
80

5.2 Structures and processes for policy implementation
86

6 Monitoring and Evaluation 93
6.1 Understanding monitoring and evaluation 94
6.2 SCP indicators 97

Part B : THEMATIC POLICY OPPORTUNITIES
106

7 Resource Efficiency and Cleaner Production
107

8 Sustainable Lifestyles 117
8.1 Supporting sustainable consumption choices 118

8.2 Choice editing and restrictions on advertising
128

8.3 Sustainable products and product information
131

9 Strategic Investments Towards Resource Efficient Cities
139
10 Sustainable Public Procurement (SPP)
157
11 Sustainable Tourism
167

Overarching policy opportunities 179
12 Fiscal Reforms
13 Redefining Education for SCP
14 Energy Efficiency
180
188
198
References 207
Foreword
As the financial and environmental costs of resource depletion and negative ecological impacts begin to affect
economic growth, countries around the world need to find ways to manage finite resources while meeting
the needs of a growing and increasingly urban world population. By integrating sustainable consumption and
production (SCP) patterns into national development planning and implementation, policymakers can make
it easier and cheaper to produce goods and services more efficiently, with lower risks to humankind and the
environment.
For example, recent research undertaken by United Nations Environment Programme (UNEP) shows that
improved efficiency can reduce energy demand by 50 to 80 per cent for most production and utility systems.
Some 60 to 80 per cent improvements in energy and water efficiency are commercially viable in sectors such
as construction, agriculture, hospitality, industry and transport. The means to achieving such efficiency gains
are outlined for the first time in this comprehensive publication. Sustainable Consumption and Production :
A Handbook for Policymakers is launched at the occasion of World Environment Day 2015 and it is a direct
contribution of UNEP towards the implementation of the 10-Year Framework of Programmes on SCP (10YFP),
which was formed in response to the recommendations of the Rio+20 Summit. These called for greater
support for developing countries to adopt more sustainable patterns of consumption and production.
The handbook contains a rich compilation of SCP definitions, case studies from all over the world, policy
instruments, policy implementation processes, monitoring and evaluation methodologies and indicators. It also
contains compelling data on both the impact of unsustainable consumption and production, and the efficiency
gains to be made by mainstreaming SCP patterns.
Using this handbook, UNEP and its partners have already implemented capacity building activities that are
leading to the development of SCP policies at national levels.
We hope that the guidance provided in this very practical publication will assist governments and other
organizations to use SCP policies and tools to realize national development goals through greater resource
efficiency gains, lower production costs and job creation. Better management of consumption patterns through
smart policies and smart living will help create an alternative model of economic growth, in which the needs of
the many are better met by the smarter management of precious resources.
Achim Steiner
Under-Secretary-General of the United Nations
and Executive Director, United Nations Environment Programme (UNEP)
page
Acknowledgements
This Handbook is an output of UNEPs work towards the implementation of the 10-Year Framework of
Programmes on Sustainable Consumption and Production (SCP). This global edition is based on a pilot edition
for Asia and the Pacific region that was developed under the EU funded and UNEP managed Regional Policy
Support Component of the SWITCH-Asia programme. The Handbook is based on original work authored by
a group of senior experts and UNEP staff and previous work that UNEP has compiled on SCP over the last
ten years. While any complete reference should acknowledge hundreds of individuals that have contributed to
UNEPs work on SCP, only the core team that developed and reviewed this work is acknowledged.
Concept, Supervision and Global Coordination: Stefanos Fotiou
Outline: Stefanos Fotiou, Lewis Akenji, Magnus Bengtsson, Emily Briggs
Regional Coordination and Inputs
Africa: Patrick Mwesigye

Asia and the Pacific: Stefanos Fotiou and Janet Salem
Europe: Rie Tsutsumi

Latin America and the Caribean: Ines Freier and Mara Murillo

North America: Hilary French

West Asia: Fareed Bushehri
Authors: Lewis Akenji, Magnus Bengtsson, Emily Briggs, Anthony Chiu, Giuseppe Daconto, Zinaida Fadeeva,
Stefanos Fotiou, Rajan Gandhi, Charlie Mathews, Graciela Metternicht, Brahmanand Mohanty, Janet Salem,
Janya Sang-Arun, Tunnie Srisakulchairak, Heinz Schandl, Mario Tabucanon
Editor: Emily Briggs
Reviewers and Contributors
Khairoon Abbas, Charles Arden-Clarke, Sandra Averous, Garrette Clarke, Loraine Gatlabayan, Curt Garrigan,
Arab Hoballah, Solange Montillaud-Joyel, Patrick Mwesigye, Soraya Smaoun, Anna Stabrawa, Sonia Valdivia,
Farid Yaker, Adriana Zacarias
Logistic and Technical Support: Chanthakarn Junnatasna, Emee R. Tan
Design/Layout: Peerayot Sidonrusmee
Cover photo: Idris Prasetiawan
page
List of Acronyms

10YFP
10 Year Framework Programmes

3R Reduce, Reuse, Recycle

ADB Asian Development Bank

AEEAP
ASEAN Environmental Education Action Plan

AfDB African Development Bank

APELL
Awareness and Preparedness for Emergencies at Local Level

APFED
Asia-Pacific Forum for Environment and Development

ASEAN
Association of Southeast Asian Nations

CP Cleaner Production

CP4BP
Cleaner Production for Better Products

CSR Corporate Social Responsibility

D4S Design for Sustainability

DE Domestic Extraction

DMC Domestic Material Consumption

EBTR
Ecological Budget and Tax Reform

ESD
Education for Sustainable Development

GDP Gross Domestic Product

GHG Green House Gases

GSTC
Global Sustainable Tourism Council

IMO International Maritime Organization

LP Labour Productivity

MEA Multilateral Environmental Agreement

MP Marrakesh Process

MTF Marrakesh Task Force

NRDC
Natural Resource Defence Council

PPP Purchasing Power Parity

OECD
Organisation for Economic Co-operation and Development

PSM Process Safety Management

PTB Physical Trade Balance

RE Resource Efficiency

RECP
Resource Efficiency and Cleaner Production

SCP
Sustainable Consumption and Production

SPP Sustainable Public Procurement

SPIN Sustainable Product Innovation

TVET
Technical and Vocational Education and Training

TPES
Total Primary Energy Supply

UNEP
United Nations Environment Programme

UNESCAP
United Nations Economic and Social Commission for Asia and the
Pacific

UNESCO
United Nations Education, Scientific and Cultural Organization

UNIDO
United Nations Industrial Development Organization

UNU/IAS
United Nations University/Institute of Advanced Studies

UNWTP
United Nations World Tourism Organization

WTO World Trade Organization
page
Stefanos Fotiou
page
Introduction
The last few decades have been a time of dynamic changes across the world, with millions of people lifted
out of poverty and a number of countries reaching middle income status. However, these achievements and
changes have come at a significant cost to the environment. Increasing demand for energy, food, water and
other resources has resulted in resource depletion, pollution, environmental degradation and climate change,
pushing the earth towards its environmental limits. With humans now consuming more resources than ever
before, the current patterns of development across the world are not sustainable.
One of the key elements for achieving sustainable development is the transition towards Sustainable
Consumption and Production (SCP). This need was first highlighted at the Rio Earth Summit in 1992 and
was recently reiterated in the outcomes of the Rio +20 summit, with the adoption of the 10 Year Framework
Programmes. SCP is about fulfilling the needs of all while using fewer resources, including energy and water,
and producing less waste and pollution. It can contribute to poverty alleviation and the transition towards a low
carbon, green economy and is essential for improving the lives of the worlds poorest people, who depend so
closely on the natural resources provided by their environment. SCP can lead to an improved quality of life and
greater employment opportunities, complementing poverty reduction strategies. In particular the continuing
infrastructure developments required across the region provide immense opportunites for SCP.
As SCP cuts across all different sectors, it requires a holistic approach and the engagement of numerous
stakeholders. Collaboration between multiples areas and levels within government is necessary to develop,
implement, monitor and evaluate successful SCP policies. It requires policy to not just improve production, but
also to support consumers to move towards sustainable consumption choices. Therefore everyone in society
has a role to play in this transition including governments, educators, the private sector and each and every
consumer.
This handbook is designed to assist policymakers in developing, implementing, monitoring and evaluating
policies that support the transition towards SCP. It includes numerous case studies highlighting SCP
opportunities and existing successful initiatives from across the world. Part A provides an introduction to the
fundamentals of SCP and follows SCP through the policy cycle. Part B details specific thematic opportunities
for SCP policy development including cleaner and safer production, sustainable lifestyles, sustainable cities,
sustainable public procurement and sustainable tourism.
page
Part A :
AN INTRODUCTION TO
SCP POLICY
Part A
Introduction to Sustainable
Consumption and Production (SCP)
1.1 Defining SCP
1.2 Why is SCP important for sustainable
development?
SCP
x
x
SCP?
Excellent
Good
Average
Poor
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page
Introduction to Sustainable
Consumption and Production (SCP)
SCP?
Key Points
Definitions of SCP vary slightly but the underlying principles remain the
same.
The terms SCP, Green Growth and Green Economy are inextricably
linked and lead to the same overall objective which is sustainable
development.
SCP is closely linked to Resource Efficiency the optimal usage of
resources, particularly scarce and non-renewable resources.
This chapter provides an introduction to SCP and related terminology. The impacts of current consumption
and production trends across the world are examined, highlighting the need for a transition towards SCP, as a
key element for sustainable development.
1.1 Defining SCP

Definition of Sustainable Consumption & Production (SCP):
The concept of SCP has evolved over time and is defined in a number of ways.
A commonly used definition is: the use of services and related products which respond to basic needs and
bring a better quality of life while minimising the use of natural resources and toxic materials as well as the
emission of waste and pollutants over the life cycle of the service or product so as not to jeopardise the needs
of future generations (ISSD 1994).
Another widely used and more recent definition is provided by UNEP: SCP is a holistic approach to minimising
the negative environmental impacts from consumption and production systems while promoting quality of life
for all (UNEP 2011).
The International Institute for Sustainable Development list 3 other definitions of sustainable consumption and/
or production and doubtless there will be even more by other bodies. Regardless of definitions, the underlying
principles of SCP must be clear.
Key principles of SCP:

1. Improving the quality of life without increasing environmental degradation and without compromising
the resource needs of future generations.
2. Decoupling economic growth from environmental degradation by:
Reducing material/energy intensity of current economic activities and reducing emissions and
waste from extraction, production, consumption and disposal.
Promoting a shift of consumption patterns towards groups of goods and services with lower
energy and material intensity without compromising quality of life.
3. Applying life-cycle thinking which considers the impacts from all life-cycle stages of the production
and consumption process.
4. Guarding against the re-bound effect, where efficiency gains are cancelled out by resulting increases
in consumption (UNEP 2011).
page
10
Part A
Figure 1.1 Sustainable consumption and production
Source: (UNEP n.d.a.)
SCP and Green Growth/Green Economy:

The key principles of SCP can be applied to the ideas of Green Growth and arriving at a Green Economy.
Green Growth is a policy focus for the Asia-Pacific Region that emphasises environmentally sustainable
economic progress to foster low-carbon, socially inclusive development (UNESCAP n.d.). UNEP describes a
Green Economy as one whose growth in income and employment is driven by public and private investments
that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of
biodiversity and ecosystem services (UNEP n.d.b.). As will be evident, the basic tenets are the same but these
two concepts draw attention to a critical element: the financing of sustainable consumption and production and
the investments required to achieve it. Overall, the concepts of Green Economy and Green Growth should not be
seen as alternative definitions of sustainable development but as specific pathways that can assist countries to
achieve sustainable development.
Resource Efficiency and SCP

Resource efficiency is the general concept of using less resource inputs to achieve the same or improved output
(resource input/output). It indicates the effectiveness with which resources are used by individuals, companies,
sectors or economies. Resource efficiency can be achieved by increasing resource productivity (value added
/ resource use) or reducing resource intensity (resource use / value added). It is related to strategies like
dematerialisation, such as fuel efficient cars.
The very definition of SCP calls for preserving resources so that future generations are not deprived of them. It
will be clear that no production can be said to be sustainable if it is profligate in the use of resources, thus there
is a direct link between resource efficiency and SCP, particularly sustainable production. Ideally, no manufacturer
should use an excess of raw materials in the production of a good if the same good could be made with fewer
raw materials and thus at a lower cost. Yet instances abound of products which are designed in a manner where
replacement is intrinsic to the product for example disposable razors or cigarette lighters. The sustainable use
of resources must be considered during all the stages of a products life-cycle: in its design, its manufacture,
its usage and even at the end of its life, where the possibility of reusing or recovering scarce materials used in
its production becomes a distinct and often profitable issue. Resource efficiency is only possible if consumers
individuals and institutional buyers alike demand sustainable products. If a demand exists for unnecessarily
resource intensive products, then one manufacturer or the other will meet the demand. Resource efficiency is thus
inextricably linked to both consumption and production.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 11
Box 1:1 Design for recycling

Recognising the great potential for recycling of discarded motor vehicles, the EU passed the Directive on Endof-Life Vehicles/2000/53/EC as far back as 2000, which set an ambitious target of 85% of passenger vehicles
recycled and re-used by 2015. Although the target has proved difficult to meet, automobile manufacturers
have made great strides in facilitating compliance for example, by using recycled material, improving material
identification, improving ease of dismantling, ease of re-use and ease of recycling. Environmentally harmful
materials and ingredients in materials are being eliminated entirely or their usage minimised. This currently
affects between 7 8 million cars being sent every year to the scrap-yard in the EU.
Source: (European Union n.d.)
1.2 Why is SCP important for sustainable

development?
Social and economic trends
The 20th century, and especially the second half of the century, was a time of remarkable change and progress
for humankind. The world has seen global increases in population, average incomes (and consumption rates),
urbanisation (and infrastructure investment) and huge growth in production activities. In many countries these
trends have contributed immensely to economic development, creating jobs, increasing the material standard
of living of many people, enabling investment in public infrastructure and reducing poverty levels. Many
countries have modernised their societies and economies enabling the greatest level of material wellbeing
ever experienced. These changes were most prevalent in OECD countries and in urban centres in developing
countries.
The rapid economic growth and human development that has occurred since the 1950s has come at a cost,
however, of very large and growing environmental pressures and impacts. The use of natural resources
biomass, fossil fuels, ores, minerals and water has grown dramatically from less than 10 billion tonnes in 1950
to over 70 billion tonnes in 2010 (UNEP, 2011). This level of resource use was largely based on the assumption
of limitless resources and overlooked the connections between resource use and environmental impacts.
The rise in resource use has been coupled with growth in waste and emissions contributing to a series of
pressure points including climate change, reduced food security, water scarcity and air pollution. It has also
lead to supply insecurity for a number of resources that are strategically important in modern production and
consumption systems (Weisz and Schandl, 2008).
In addition, since the 1980s there has been a growing gap between wealthy and poor people in both developing
countries and across the OECD. More recently, the governance and functioning of the global economic systems
has been challenged during the global financial crisis that started in 2008.
A modern lifestyle based on current patterns of consumption and production requires a large amount of
natural resources, of between 25 and 30 tonnes of materials per capita, per annum (Wiedmann et al., 2013).
Multiplied by the 9 billion people expected by 2050 this would mean a global material use of between 225
and 270 billion tonnes or three to four times the amounts of 2010. The investments needed to establish global
extractive capacity adequate for such high levels of resource use would be huge and potentially unaffordable.
Such quantities of resources are simply not available, and the absorptive capacity of the earths ecosystems
are already stretched at much lower global levels of resource use. It is therefore evident that current patterns
of consumption and production are environmentally unsustainable and socially inequitable.
To accommodate 9 billion people and allow for high human development for the majority a fundamental
restructuring of current systems of production, provision and consumption is required. Economic growth,
human development and wellbeing would need to be substantially decoupled from resource use and
environmental impact (UNEP, 2011). Achieving gains in decoupling will not happen spontaneously, but will
require well designed public policies that enable economic restructuring toward sustainable consumption and
production and resource efficiency.
Current economic and business incentives are still tailored to the experience of the 20th century; a time
of low resource prices that justified investing in labour productivity at the cost of resource productivity. The
21st century, however, presents a very different economic context of rising and more volatile resource prices,
requiring a rethinking of political steering and business practices. Economic competitiveness and prosperity in
the future will be underpinned by large investments into infrastructure and skills that enable a green and low
carbon economy that services equitable opportunities for nations and people.
page
12
Global resource use grew from 24.8 billion tonnes in 1970 to 69.9 billion tonnes in 2008, corresponding to a yearly
growth rate of 2.8% (West and Schandl, 2013). Over the past two decades most of the growth came from the
Asia-Pacific region, driven by a fast transition in a number of rapidly developing economies, most notably China. A
number of different models, each with a range of scenarios, have been developed to predict future global resource
use.
Part A
The rise of global resource use
UNEP (2011) has created three scenarios for global resource use and assumes a global resource use of 150
billion tonnes by 2050 in a business as usual scenario. Two alternative scenarios of moderate contraction and
convergence and tough contraction and convergence of resource use result, according to UNEP, in much lower
projections of below 70 billion tonnes in 2050.
Dittrich et al. (2012) assumed 180 billion tonnes of global resource use by 2050. A high population growth scenario,
according to this study, would result in annual resource use of 200 billion tonnes. The study shows a number of
alternatives to a business as usual scenario which could bring global resource use down to between 40 and 100
billion tonnes by 2050, depending on achievements in resource efficiency.
Schandl et al. (2013), based on a coupled economic and biophysical model, contrasted a baseline scenario of
about 180 billion tonnes with a moderate resource efficiency scenario (based on a global carbon price of $30 per
tonne) resulting in about 130 billion tonnes, and high resource efficiency scenario (based on a global carbon price
of $50 per tonne) at 95 billion tonnes of global resource use by 2050.
Figure 1.2 Global resource use by 2050 under various scenarios
Comparing global resource use scenarios

200000
180000
160000
Million tonnes
140000
120000
100000
Global BS
Global TS25
80000
Global TS50
60000
40000
20000
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
0
Year
Source: (CSIRO Global EnvironmentEconomy Model 2013)

Whilst the estimates from each of the models differ, they all point to significant rises in resource use, far beyond
the carrying capacity of the planet, if immediate action is not taken to address resource efficiency.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 13
Regional Snapshots
Where possible, a snapshot of the state of resource use has been provided for each global region. Often full
regional data is not available, so a snapshot for a country or group of countries from within the region has
instead been provided. This simply represents the countries in question and is not necessarily indicative of the
resource use across the region.
Box 1:2 Legend
GDP/cap ($)
Gross Domestic Product (GDP)/ LP ($/h)

capita in current
Labour productivity (LP) = GDP/

labour volume
PPP/cap (int. $) Purchasing Power Parities (PPP)/ MP ($/kg)

capita in current international $
Material productivity (MP) = GDP/

DMC
DE (million t)
Domestic extraction of materials EP ($/MJ)

(DE)
Energy productivity (EP) = GDP/

TPES.
PTB
Physical trade balance (PTB)
DMC (million t)
Domestic material consumption

(DMC) = DE + PTB
TPES/cap (GJ) Total primary energy supply (TPES)

Snapshot: Africa
Africa has experienced high population growth since the 1970s which went hand in hand with moderate or
slow economic growth and a slow increase in the resource base. Per-capita DMC in Africa is very low at 3.7
tonnes and energy use is only 33 GJ/capita which reflects a low material standard of living. Per-capita material
use has been stagnant since the 1980s which shows that the material standard of living could not keep up
with population growth.
Table 1:1 Headline indicators for Africa, 2010

Population (million)
1,287
DE/cap (t)
4.1
GDP/cap ($)
1,683
PTB/cap (t)
-0.4
PPP/cap (int. $)
4,366
DMC/cap (t)
3.7
DE (million t)
5,257
TPES/cap (GJ)
33.3
PTB (million t)
-441
LP ($/h)
3.36
DMC (million t)
4,816
MP ($/kg)
0.45
TPES (PJ)
41,880
EP ($/MJ)
Source: World Bank World Development Indicators 2013. Dittrich et al. 2012.
Over the whole period since the 1980s Africa has been a net exporter of natural resources, in particular fossil
fuels but also metal ores. Africa has seen some improvement in labour productivity especially since the year
2000, but has been stagnant in energy productivity since the 1990s.
SCP?
page
14
Part A
Figure 1.3 Africa snapshot
DMC Africa
DE/capita Africa
5
6000
4.5
5000
4
3.5
Tonnes/capita
Million tonnes
4000
3000
2000
3
2.5
2
1.5
1
1000
0.5
0
1970
1980
1990
2000
2010
1970
1980
1990
Year
Construction minerals
Metal ores and industrial minerals

Biomass
Fossil Fuels
2000
2010
Year
Fossil Fuels
PTB/capita Africa

Biomass
DMC/capita Africa
4.5
0.1
3.5
3
Tonnes/capita
Tonnes/capita
-0.1
-0.2
-0.3
2.5
2
1.5
-0.4
1
-0.5
0.5
-0.6
1970
1980
1990
2000
2010
0
1970
1980
1990
Year

Biomass
Fossil Fuels
2000
2010
Year
Fossil Fuels

Biomass
Factor productivities Africa

180
160
Index (1970 = 100)
140
120
100
80
60
40
20
0
1970
1980
1990
2000
2010
Year
Material productivity
Labour productivity
Energy productivity
Source: (CSIRO & UNEP 2013a)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 15
Snapshot: Asia and the Pacific
In recent decades, but especially since the year 2000, Asia and the Pacific has been the most dynamic world
region both economically and in terms of natural resource use. The achievements in human development and
economic transition that have occurred have come at a cost of rising resource use, increases in waste and
emissions and a growing dependency on resources from abroad. Growing net imports of natural resources
indicate that the local resource base is no longer sufficient to support fast growing economic activity and emerging
new lifestyles in the region. The efficiency with which materials are used has declined since 1990, meaning that
extractive pressures on the environment will increase even more rapidly than the regions rapid rate of economic
growth. Population growth is now the least important driver of regional natural resource use.
Table 1:2 Headline indicators for Asia and the Pacific, 2010
3,835
DE/cap (t)
10.30
GDP/cap ($)
4,784
PTB/cap (t)
0.26
PPP/cap (int. $)
6,884
DMC/cap (t)
10.56
DE (million t)
39,505
TPES/cap (GJ)
49.09
PTB (million t)
1,006
LP ($/h)
9.19
DMC (million t)
40,511
MP ($/kg)
0.10
TPES (PJ)
184,545
EP ($/MJ)
Source: (World Bank 2013) & (CSIRO Global Material Flow Database 2013)
0.45
Domestic material consumption in Asia and the Pacific has grown from around 6 billion tonnes in 1970 to about
40 billion tonnes in 2010. This corresponds to a rise in per capita material use from 3 tonnes in 1970 to over
10 tonnes in 2010, or a threefold increase over the past four decades. While labour productivity improved by a
factor of 2.5 over the same period, material productivity was stagnant until 1990 and has since declined. The
region today uses more resources per unit of economic output than it did in the 1970s because of its transition
to industrial production technologies and modern lifestyles.
In 2010, Asia-Pacific was home to 56% of the world population and earned a GDP of between 29%-34%. The
region used one third of global energy and 58% of materials. Per capita-energy use was relatively low at 49GJ/
capita. Labour productivity was lower than the world average and so were energy and materials productivities.
This means that the region is using its resources less efficiently to support its economic growth and wellbeing.
Over the last 4 decades, labour productivity increased markedly in Asia-Pacific but at the cost of stagnant energy
productivity and declining material productivity. If labour was the scarce factor in the region this development
would be fine. However as labour is abundantly available and resources materials and energy are becoming
more constrained the region should start to invest in resource productivity through changes in incentives (Schandl
and West 2010).
page
16
Part A
Figure 1.4 Asia and the Pacific snapshot
DE/capita Asia and the Pacic
DMC Asia and the Pacic

12
45000
40000
10
35000
8
Tonnes/capita
Million tonnes
30000
25000
20000
15000
10000
2
5000
0
0
1970
1980
1990
2000
1970
2010
1980
1990

Biomass
Fossil Fuels
2000
2010
Year
Year
Fossil Fuels
PTB/capita Asia and the Pacic

Biomass
DMC/capita Asia and the Pacic
0.3
12
0.25
10
0.15
Tonnes/capita
Tonnes/capita
0.2
0.1
0.05
0
2
-0.05
-0.1
0
1970
1980
1990
2000
2010
1970
1980
1990
Year

Biomass
Fossil Fuels
2000
2010
Year
Fossil Fuels

Biomass
Factor productivities Asia and the Pacic

300
250
Index (1970 = 100)
200
150
100
50
0
1970
1980
1990
2000
2010
Year
Labour productivity
Source: (CSIRO & UNEP 2013a)

Energy productivity
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 17
Snapshot: Eastern Europe, Caucasus and Central Asia

Recent economic development in Eastern Europe has been determined by the economic and political
restructuring that occurred in the former Soviet Union in the early 1990s. The closing of outdated industries
and infrastructure as well as the independence of a number of countries resulted in a sharp decline in material
use from 1990 to 2000. Since then, the economies in Eastern Europe and Central Asian countries have
rebounded, resulting in growing resource use.
Table 1:3 Headline indicators Eastern Europe, Caucasus and Central Asia, 2010
279
DE/cap (t)
5.24
GDP/cap ($)
7,051
PTB/cap (t)
-0.88
PPP/cap (int. $)
13,447
DMC/cap (t)
5.17
DE (million t)
4,667
TPES/cap (GJ)
142.25
PTB (million t)
-787
LP ($/h)
11.31
DMC (million t)
3,880
MP ($/kg)
0.05
TPES (PJ)
39,729
EP ($/MJ)
0.51
Today, per capita material use is around 15 tonnes, 5 tonnes up from the year 2000.
In 2010, the Eastern Europe, Central Asia and Caucasus was home to 4% of the world population and generated
a GDP of 3%-5% of global GDP. Energy use was 8% and material use 6% of total global consumption. Percapita energy use was comparably high (similar to that of the European Union) and as a consequence, energy
productivity was very low at only half of the world average. Material productivity was similarly low, however
labour productivity was around the world average.
The region is still recovering from the economic restructuring some 20 years ago. It has a focus on primary
industries producing for export with few value adding industries within the region.
Productivity trends appear to be distorted in ECCAA caused by the massive economic restructuring that
occurred in the 1990s. Since 1990, however, resource productivity has grown faster than labour productivity
which is very different from many other regions. To increase the competitiveness of the region, economic policy
may aim to address the need for growth in labour productivity. Ideally however, such an increase would not
happen on the back of declining resource productivity.
page
18
Part A
Figure 1.5 Eastern Europe, Caucasus and Central Asia snapshot
DMC EECCA
DE/capita EECCA
7000
25
6000
20
Tonnes/capita
Million tonnes
5000
4000
3000
15
10
2000
5
1000
0
1970
1980
1990
2000
1970
2010
1980
1990

Biomass
Fossil Fuels
2000
2010
Year
Year
Fossil Fuels
PTB/capita ECCA

Biomass
DMC/capita EECCA
0.5
25
0
20
-1
Tonnes/capita
Tonnes/capita
-0.5
-1.5
-2
15
10
-2.5
5
-3
-3.5
0
1970
1980
1990
2000
2010
1970
1980
1990
Year

Biomass
Fossil Fuels
2000
2010
Year
Fossil Fuels

Biomass
Factor productivities EECCA

250
Index (1970 = 100)
200
150
100
50
0
1970
1980
1990
2000
2010
Year
Labour productivity
Energy productivity
Source: (CSIRO and UNEP

Eastern Europe Caucasus and
Central Asia Material Flow and
Resource Productivity Database)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 19
Snapshot: European Union
The European Union has been leading in developing policies for sustainable resource use, which is reflected
in comparably low per-capita resource use levels. This is enabled, however, through the outsourcing of many
resource and emission intensive processes to other countries and much of the high resource efficiency of
Europe is bought through relocation of dirty industries.
Table 1:4 Headline indicators for the European Union, 2010

502
DE/cap (t)
12.76
GDP/cap ($)
32,346
PTB/cap (t)
2.01
PPP/cap (int. $)
31,746
DMC/cap (t)
15.43
DE (million t)
6,407
TPES/cap (GJ)
146.95
PTB (million t)
1,008
LP ($/h)
83.30
DMC (million t)
7,746
MP ($/kg)
2.10
TPES (PJ)
73,323
EP ($/MJ)
Source: (World Bank 2013) & (European Commission 2013)
0.22
In 2010, Europe was home to 7% of the worlds population and generated between 21%-26% of global
GDP. To do so, Europe used 15% of the global energy use and 11% of primary materials. Europes labour
productivity was 8 times the global average, and energy and material productivity were twice as good as the
global average.
Many countries in Europe have achieved a highly resource efficient economy through abandoning their heavy
industries and through importing many goods that are now produced outside of Europe helping to avoid
environmental pressures within Europes boundaries. Hence, territorial energy and material use as well as
emissions are comparably low. When natural resource use and emissions are attributed to final consumption in
Europe, the amount of resource used more than doubles and resource efficiency is considerably lower. Despite
this fact there are also examples of best practice in Europe such as the German investment and policy setting
for an energy transition to renewable and distributed energy.

Snapshot: Latin America and the Caribbean
Since 1970, Latin America has undergone different phases of economic development including a phase of
protectionist policies in the 1970s, a debt crisis in the early 1980s and a period of market opening and trade
liberalism since the early 1990s increasing the production of primary resources for trade in many countries.
Since 2000, there has been an obvious signal of Asian growth in the Latin American trade balance and
material flow accounts, through the export of metals and fossil fuels to service infrastructure development and
manufacturing in Asia.
Table 1:5 Headline indicators for Latin America and the Caribbean, 2010
589
DE/cap (t)
15.02
GDP/cap ($)
8,698
PTB/cap (t)
-1.21
PPP/cap (int. $)
11,431
DMC/cap (t)
13.81
DE (million t)
8,849
TPES/cap (GJ)
55.87
PTB (million t)
-714
LP ($/h)
17.57
DMC (million t)
8,135
MP ($/kg)
0.63
TPES (PJ)
32,181
EP ($/MJ)
0.16
Domestic material consumption has grown fourfold over the past four decades, from 2 billion to 8 billion tonnes
corresponding to a rise in material use from 8 to 14 tonnes per capita. Latin America has been a net exporter
of primary materials since 1970 and today exports around 1 tonne per capita mostly metal ores and fossil
fuels, but also considerable quantities of biomass.
Material productivity has declined, linked to the fast growing mining and energy sector and related waste flows.
Whereas labour productivity, after a long phase of stagnation and slow growth in the 1980s and 1990s, has
surged since 2000.
page
20
DMC Latin America
DE/capita Latin America
9000
16
8000
14
7000
12
Tonnes/capita
Million tonnes
6000
5000
4000
3000
10
8
6
4
2000
1000
0
0
1970
1980
1990
2000
1970
2010
1980
Year
1990
2000
2010
Year

Biomass
Fossil Fuels
Fossil Fuels
PTB/capita Latin America

Biomass
DMC/capita Latin America
0.2
16
14
-0.2
12
-0.4
10
Tonnes/capita
Tonnes/capita
Part A
Figure 1.6 Latin America and the Caribbean snapshot
-0.6
-0.8
8
6
-1
-1.2
-1.4
0
1970
1980
1990
2000
2010
1970
1980
Year
2000
2010
Year

Biomass
Fossil Fuels
1990
Fossil Fuels

Biomass
Factor productivities Latin America

200
180
160
Index (1970 = 100)
140
120
100
80
60
40
20
0
1970
1980
1990
2000
2010
Year
Labour productivity
Energy productivity
Source: (CSIRO and UNEP 2013b)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 21
In 2010, Latin America and the Caribbean had 9% of the world population and generated 8%-9% of global
GDP. The region used 7% of global energy and 12% of materials. Labour and energy productivity were above
the world average, however material productivity was below average because of the large primary industry
sector in many LAC countries.
In Latin America labour productivity has grown much faster than resource productivity, which has been
stagnant. This development has been driven by the dominance of primary industries in many Latin American
economies which drives the resource intensity of the economy upwards (West and Schandl, 2013).
Global demand for materials is going to grow in the future, therefore the extractive industries in Latin America
will also expand. This will require polices that help avoid the negative economic and social effects summarised
as resource curse and to assist gain sharing among communities.

Snapshot: United States of America
The United States is still a global economic powerhouse, despite the economic downturn experienced during
the recent global financial crisis. Due to the size of the country and the economy, a large amount of natural
resources is sourced from within the country which results in a low dependency on foreign resources with the
important exception of crude oil.
Table 1:6 Headline indicators for the United States of America, 2010
309
DE/cap (t)
25.07
GDP/cap ($)
47,160
PTB/cap (t)
2.54
PPP/cap (int. $)
47,160
DMC/cap (t)
27.62
DE (million t)
7,755
TPES/cap (GJ)
313.50
PTB (million t)
787
LP ($/h)
100.87
DMC (million t)
8,542
MP ($/kg)
1.71
TPES (PJ)
95,335
EP ($/MJ)
0.15
Source: (World Bank 2013), (Gierlinger and Krausmann 2012) & (CSIRO Global Material Flow Database 2013)
Overall material use in the United States grew from 5.5 billion tonnes in 1970 to over 8 billion tonnes in 2010.
On a per capita basis, material use has been stable at around 25 to 30 tonnes per capita since the 1970s. Over
the past four decades, the United States has been a net importer of materials. Net imports have grown fast
since 1980, and reached 3 tonnes per capita by 2010. Fossil fuels account for the largest share, comprising
over 80% of overall net imports.
In 2010, 4% of global population lived in the United States and the US generated 19%-23% of global GDP.
The US used one fifth of global energy and 12% of materials. Labour productivity in the US was 10 times
higher than the world average which is enabled through high level of capitalisation in the economy and high
energy use. Energy productivity was around the world average and material productivity was double the world
average. This demonstrates that the US uses materials quite efficiently, which is not the case for energy.
In the United States, the three productivities have moved in concert since the 1970s which means that labour
productivity was able to be increased without negatively impacting resource productivity gains.
page
22
DMC United States
Part A
Figure 1.7 United States of America snapshot
DE/capita United States

30
10000
9000
25
8000
20
6000
Tonnes/capita
Million tonnes
7000
5000
4000
15
10
3000
2000
1000
0
0
1970
1980
1990
2000
1970
2010
1980
1990
Year

Biomass
Fossil Fuels
2000
2010
Year
Fossil Fuels
PTB/capita United States

Biomass
DMC/capita United Sates
3.5
35
30
2.5
25
Tonnes/capita
Tonnes/capita
2
1.5
1
20
15
0.5
10
0
5
-0.5
-1
0
1970
1980
1990
2000
2010
1970
1980
1990
Year

Biomass
Fossil Fuels
2000
2010
Year
Fossil Fuels

Biomass
Factor productivities United States

250
Index (1970 = 100)
200
150
100
50
0
1970
1980
1990
2000
2010
Year
Labour productivity
Energy productivity
Source: (Gierlinger and Krausmann 2012) & (CSIRO Global Material Flow Database 2013)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 23
Declining environmental capacity to absorb waste and emissions

One constant throughout these shifts in resource use is the capacity of the receiving environment to absorb
emissions, waste and land use changes. Fast growing global metabolism now at 70 billion tonnes
has resulted in a number of environmental pressures and impacts and has increasingly led to overuse of
environmental sinks. Since the 1970s the most important environmental impacts related to emissions have
been climate change (caused by a number of greenhouse gas emissions), eutrophication (caused by the
pollution of water bodies with nitrogen and phosphorus) and a number of human ecotoxic effects (cause by
urban air pollution, indoor air pollution and toxic emissions).
A number of these impacts are directly related to resource use, including the depletion of non-renewable
resources (such as fossil fuels and ores), depletion of renewable resources (especially timber and fish), and large
scale land use change resulting in habitat loss. Many ecosystem thresholds are already at their limit, therefore
the question remains, how will the world develop into the future, first and foremost to combat poverty and to
meet the needs of its economies, while maintaining a functioning resource base and receiving environment.
Resource use and human development

The main challenge for economic and environmental policy making is the dual objectives of development and
environment. Over the last half century, the world has made remarkable progress in human development and
improving the material standard of living of many of its people. Despite these remarkable developments there
remains much to be done in regard to further development, increasing opportunity and living standards for the
many people who still live in poverty and disadvantage. Many countries across the globe will require future
economic growth to enable an increasing standard of living for households and to combat poverty, which is still
entrenched in many parts of the world. The challenge to improve human development and to combat poverty
remains large, with an estimated 1.2 billion people still living in extreme poverty.
Human development depends on the timely availability of high quality natural resources. The overall material
standard of living, the level of education and the quality of health care and hence the opportunity for a long,
healthy and satisfying life require certain amounts of energy carriers, building materials, metals, food and water.
Research has shown, however, that the relationships between human development and the amount of natural
resources and emissions underpinning human development are highly nonlinear (Steinberger and Roberts
2010). At lower levels of natural resource use and emissions a small increment of additional resources can
make a large difference in achieving human development outcomes. At very high levels of human development
additional increments of natural resources usually make little or almost no difference at all.
Different aspects of human development literacy, life expectancy, and per capita income have different
costs in terms of environmental pressure. High achievements in literacy and life expectancy are possible based
on moderate levels of natural resource use. High per capita income, by contrast, almost always requires high
levels of natural resource use and emissions.
A study by Steinberger and Roberts (2010) found that by the mid 1970s, the global supply of natural resources
was not sufficient to service high human development for every citizen. The same research found, analysing
data for 2005, that if natural resources were equally distributed the energy and carbon levels in this year
would have been more than sufficient to satisfy global human needs at high levels of human development.
The authors also found that the global energy consumption and carbon emissions required to satisfy human
needs will decrease with time, despite growth in population, due to overall efficiency gains in many systems
of provision including housing, mobility, food, energy and water, in delivering a high material standard of living.
This does not mean, however, that the overall level of natural resource demand and the related level of emissions
will start to reduce any time soon. This is dependent on achieving large investments in green technologies,
buildings and infrastructure that need less materials and energy and produce less emissions and waste.
Increasing the eco-efficiency of production

It is also obvious to many, that while poverty reduction and economic growth are a priority for many countries
across the world, future growth models cannot mimic the historical growth model of todays industrialised
countries. There needs to be considerable innovation for establishing a new industrialised system that can
fuel prosperity beyond the aggressive resource consumption of the old industrial system. SCP provides an
opportunity for balancing the socio-economic driving forces with the environmental capacity of the globe.
One important aspect of SCP, which has been addressed by academic research and policy efforts since the
page
24
The greatest potential for eco-efficiency often exists in the heavy industry sectors of steel and cement, the building
and transport sectors, and in agriculture. Many other manufacturing activities also present large potential for
saving resource use and emissions. Other important opportunities to increase the eco-efficiency of production
systems include through implementing industrial symbiosis (refer to Chapter 7) and improving recycling rates.
Part A
1980s, is the potential for cleaner production and greater eco-efficiency of production. Reducing the natural
resources used in production as well as related waste and emissions is beneficial for the environment and also
saves production costs, which makes it an attractive strategy for businesses, particularly in material, energy and
emission intensive industries.
Box 1:3 Eco-efficiency gains through recycling

Recycling is an important contributor to eco-efficiency. Many materials have a large recycling potential, and
recycling industries, for example for metals, have been established across the world. Metals, especially, have
excellent properties for recycling, and for metals such as iron and steel, copper and aluminium recycling has
a long tradition. Steel is the most widely used metal and in 2009 more than 1.2 billion tonnes of steel were
produced globally (UNEP, 2011). Recycling rates for steel are as high as 70 to 90%, which is one of the highest
end-of-life recycling rates among all the industrially used metals. Recycling rates for lead are above 50% but
those for copper and aluminium are only around 25 to 30%. For many other metals, however, the recycling
potential is not sufficiently used.
Sustainable consumption
Sustainable consumption has two important aspects, the need to attend to under-consumption and on the other
hand, the rising consumer classes in OECD and developing countries and their very high consumption levels.
Lifestyles and consumption patterns of millions of consumers in developing countries are now converging with
those of OECD countries. This is particularly the case among younger and well educated elites. This global
consumer class already totalled 1.7 billion people in 2004 (Worldwatch Institute, 2004) of whom almost 40% (or
680 million) lived in Asia.
Following in the footsteps of already developed countries, the consumption patterns of the new consumer classes
will result in larger houses and apartments fitted with new appliances, new modes of transport and increasing
private car ownership, increased air travel, new diets based on much larger amounts of meat and dairy and a
whole range of new manufactured goods. There is an important opportunity to guide the transition in consumption
in OECD and developing countries toward sustainability through policy settings and frameworks that privilege
environmentally friendly and socially just products and services. This can happen through labelling, subsidies and
information campaigns, which are all areas in which government intervention will be of great importance. Chapter
8, Sustainable Lifestyles provides more information on such options.
Governments are able to showcase best practice in their own consumption behaviour through sustainable public
procurement, investment in energy efficient and low material intensity public buildings such as government offices,
schools and hospitals, and through investing in sustainable public infrastructure. These investments will greatly
pay off in terms of sustainable natural resource use and climate change mitigation while promoting sustainable
choices to the greater community.
It is important to note that most of the buildings and infrastructure that will be operated by 2050 do not exist
today, which offers a large window of opportunity for investing today in the sustainable infrastructure that will
have a lasting legacy towards the middle of the century. This is especially true for fast growing cities in developing
countries across Asia, LAC and Africa. There is also great potential for urban infrastructure improvements in car
based cities in North America, Canada and Australia and elsewhere in the world.
Identifying priority sectors for SCP

Identifying production processes and industry sectors that have the highest contribution to environmental
pressures and impacts helps companies and policymakers to develop sustainability strategies for production
processes. A report by UNEP (2010) identifies processes depending on fossil fuels, agriculture and fisheries as
high impact sectors with regard to traditional environmental problems such as climate change, acidification of soils
or eutrophication of water bodies.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 25
The role of trade in global sustainability

Globalisation based on an increasing mobility of capital and labour results in rapidly growing trade volumes
leading to a globally uneven distribution of costs (in terms of environmental pressure) and benefits (in terms of
material standard of living) of the use of material and energy. Only a few countries would be able to satisfy the
material needs of modern production and consumption systems with natural resources from their own territory.
Research finds that the current level of national material consumption, especially in high income countries
but also in fast growing developing countries, has only been made possible through a record increase in
international trade.
Recent research (Wiedmann et al. 2013) shows that as much as 40% of all global raw materials or 29 billion
tonnes (of a total of 70 billion tonnes) were extracted and used to enable exports of goods and services to
other countries. This is on average about three times larger than the physical quantity of traded goods only
about 10 billion tonnes that actually crossed national borders.
Trade volumes are growing much faster than the extraction of natural resources. Primary resources often come
from less developed countries that have a lower population density and greater remaining natural resource
endowments. Through trade, many high-income countries have been able to outsource some of the material
and energy intensive processes contributing to massive gains in resource efficiency in those countries. Much of
these gains are, however, artificial, as the upstream requirements for consumption in high income countries are
large. Once material and energy use and emissions are attributed to final consumption, high-income countries
or middle class consumers show the highest natural resource and emissions footprint.
Countries that depend on imports, such as Japan for instance, show quite low per-capita material use of
about 10 tonnes per capita. A material footprint perspective however, shows that the material standard of living
of people in Japan actually depends on 25 tonnes of materials per capita, most of which are sourced from
outside of the country.
Australia demonstrates the opposite case. They are a large material and energy exporter, resulting in a high
per-capita material use for production of around 50 tonnes per capita. However their material footprint is much
lower, at around 35 tonnes per capita. A large fraction of material use in Australia occurs for consumption in
other parts of the world.
page
26
Part A
Figure 1.8 Domestic Material Consumption (DMC) compared to Material Footprint (MF)
Australia
Tonnes per capita
60
50
40
30
DMC
20
MF
10
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
0
Year
Japan
Tonnes per capita
30
25
20
15
DMC
10
MF
5
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
0
Year
Source: (Wiedmann et al. 2013)

Most certainly, trade flows of material and energy will continue to grow, further contributing to the already uneven
distribution of costs and benefits from resource use across the globe. This creates very distinct policy challenges.
Public policies for SCP will underpin the future prosperity of the globe and the
competitiveness of nations
For a long time the majority of environmental pressures and impacts came from wealthy OECD countries. This has
profoundly changed since the 1990s and now developing countries especially in Asia but also in Latin America
and Africa have been the motor of world economic development. Over the last two decades millions of people
in developing countries were lifted out of poverty and living standards continue to grow steadily. The economic
transition in the developing world is happening in an economic context that former World Bank economist Herman
Daly has named full world economics (Daly, 2007). This reflects on an economic context in which natural resources
and the absorptive capacity of ecosystems have increasingly become the limiting factors in economic growth and
human development. While labour is available in abundance, resources will need to be extracted at ever-higher
effort and climate change is setting clear limits on emissions.
In this new economic context, governments, businesses and households need to care about resource efficiency,
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 27
and change to new ways of producing and consuming in order to make room for further growth and prosperity.
The changing context indicates that environment and development are no longer antagonistic goals but are
intrinsically interrelated. Without resource efficiency and innovation for SCP, future prosperity will be increasingly
difficult to achieve. Developing countries have a number of advantages in creating a green economy. These
include their traditional culture, which affirms sustainability, its people, many of whom are well educated and
ready for innovation, and the fact that a lot of the infrastructure required for the future has not yet been
established, creating a huge window of opportunity to do things well. This will require additional investment for
lower income countries and the redirection of existing investment in emerging economies to enable sustainable
consumption and production that will underpin a transition to a green economy.
Box 1:4 What are decoupling and resource efficiency?
If world population and consumption rates continue according to business as usual, annual global resource
extraction could triple from 2000 levels to 140 billion tons in 2050. This scenario would seem to represent an
unsustainable future in terms of resource use, emissions and environmental impacts. To address this challenge,
experts and decision makers have investigated decoupling as a framework for breaking the links between
human well-being and economic growth on the one hand, and escalating resource use and environmental
degradation on the other hand. Decoupling means two things: decoupling economic growth from resource
consumption (resource decoupling) and from environmental impacts (impact decoupling). This means
that resource decoupling efforts should be checked to see that they do not increase environmental impacts.
For developing countries with low metabolic rates (see Box 1:7), the foremost priority is to improve levels of
material well being and access to services. For these countries, innovative opportunities need to be found
to ensure better delivery of services and access to resources in a way that conserves their natural resource
base. In this case, resource productivity is an important strategy in addition to resource efficiency. Developed
countries with high resource metabolisms will have an abundance of opportunities to restore their resource
base, improve the quality of their environment and reduce GHG emissions through more efficient and better
use of resources. In this case resource efficiency strategies will be highly effective, and can be complemented
by resource productivity.
Decoupling
In general, decoupling means removing the link between two variables. The International Resource Panel
often refers to resource decoupling (the delinking of economic growth and resource use) and impact
decoupling (the delinking of economic growth and negative environmental impacts). Moreover, decoupling
can be relative (e.g. the rate of resource use increase is lower than the rate of economic growth) or absolute
(e.g. resource use declines while the economy grows).
Box 1:5 Resource efficiency and development

Assumptions about environment and development tend
to reflect the hypothesis of the Environmental Kuznets
curve. This hypothesis suggests that as economies
develop, environmental problems initially increase in
line with economic development, before decreasing in
later stages of economic development. This has been
the excuse behind waiting until we can afford it before
acting.
Recent studies have suggested that this relationship
only relates to community level environmental problems,
such as urban air pollution, whereas household level
environmental problems only decrease and global
environmental problems only increase (see the orange and
green curves respectively). The International Resource
Panels most recent report on decoupling has shown
that metabolic rates, at least based on latitudinal data,
follow the trend of the green line, continually increasing Source: (Adapted from Wilkinson et al., cited in
with economic growth. This indicates that it is difficult to UNEP 2011b)
reduce the severity of resource use once consumption
levels are high, making it reasonable for policymakers
to find resource efficient paths of development at earlier
levels of economic wealth.
page
28
Part A
Figure 1.9 The global interrelation between resource use and income (175 countries in
the year 2000)
Source: (Wiedmann et al. 2013)

Box 1:6 Metabolic rates
Metabolic rates can be measured using Domestic Material Consumption (DMC), which is the mass of
resources extracted domestically (from mining and agriculture) + products and materials imported - products
and materials exported. Figure 1:10 shows the correlation between DMC and GDP, which follows the green
continually increasing line in the Environmental Kuznets Curve, indicating it is not an environmental pressure
that can easily be reduced once a country reaches higher development levels.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 29
Roadmap to a Resource Efficient Europe outlines a plan to transform Europes economy

into a sustainable one by 2050. It proposes ways to increase resource productivity and
decouple economic growth from resource use and its environmental impact. It illustrates
how policies interrelate and build upon each other.
Part A
Further reading 1
European Commission 2011, Communication from the Commission to the European

Parliament, the Council, the European Economic and Social Committee and the
Committee of the Regions: Roadmap to a Resource Efficient Europe, COM(2011) 571
final, EC, Brussels.
Resource Efficiency in Latin America: Economics and Outlook provides an

understanding of the existing trends and challenges in terms of resource efficiency. From
the trends observed, four regional scenarios were built for 2010-2030 in order to identify
viable alternatives to eventually make the best use of the regions potential.
PNUMA & Red Mercosur 2011, Resource Efficiency in Latin America: Economics and
Outlook, PNUMA & Red Mercosur.
Africa Review Report on Sustainable Consumption and Production reviews progress

achieved in the thematic SCP issues identified at CSD-18, in Agenda 21 and in the
Johannesburg Programme of Implementation. It provides an in-depth review of concrete
actions and achievements, identifies and documents implementation challenges and
constraints, and proposes the way forward for accelerating implementation progress in
the area of SCP in Africa.
UNECA n.d., Africa Review Report on Sustainable Consumption and Production, UNECA.
Indicators for a Resource Efficient and Green Asia and the Pacific - Measuring
progress of sustainable consumption and production, green economy and resource
efficiency policies in the Asia-Pacific region This report reveals the patterns and the
evolution of natural resource use in the Asia and the Pacific region over the last 40 years.
With more than 130 graphs and tables and 115,000 data points available, the report
presents a comprehensive set of indicators of resource use at national and regional levels.
By reading the full report each expert and decision maker will find information relevant to
support decision-making for national policy priorities and development objectives.
UNEP 2015, Indicators for a Resource Efficient and Green Asia and the Pacific - Measuring
progress of sustainable consumption and production, green economy and resource
efficiency policies in the Asia-Pacific region, Schandl, H., West, J., Baynes, T., Hosking,
K., Reinhardt, W., Geschke, A., Lenzen, M. United Nations Environment Programme,
Bangkok.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 30
Part A
Milton Grant
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 31
Part A
The Fundamentals of SCP
2.1 Linkages between poverty reduction

and SCP
2.2 Life-cycle thinking and a systems

approach
SCP
x
x
SCP?
Excellent
Good
Average
Poor
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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The Fundamentals of SCP
SCP
Key Points
SCP is a critical element of poverty reduction that needs to be part of a
holistic poverty alleviation policy.
There is no real conflict in priorities between economic development and
SCP.
Sustainable economic growth need not be restrained SCP calls for
different growth paths, not curtailed growth.
A vision that considers life cycle approaches is fundamental when moving
towards SCP, as encouraged in the recently adopted document at Rio+20
on the 10YFP.
Life-cycle thinking is one of the most important elements in the SCP
approach. It provides the framework for a holistic assessment and can be
applied to any kind of system or value chain.
SCP takes a systems approach to sustainability. It means trying to address
the underlying causes of an identified problem rather than just trying to
alleviate its immediate symptoms.
This chapter introduces concepts and perspectives that are fundamental to SCP thinking and practice. It
addresses some widely held misunderstandings, in particular the misconception that there is a conflict between
SCP and poverty alleviation. The importance of considering products and services in terms of their complete
lifecycle is introduced and explained.
2.1 Linkages between poverty reduction and SCP

SCP and poverty reduction
In classic terms, the objective of SCP is to:
Conserve natural resources through more efficient use so that human needs can be satisfied without
exhausting the worlds finite supply of such resources, leaving behind enough for future generations.
Ensure that the goods and services we produce and consume and the manner in which they are
produced, used and discarded does not pollute the planet.
The most pressing issue for developing countries, including those in transition, is poverty alleviation. This
remains the single most important of the Millennium Development Goals. Economic growth is thus of key
importance to developing countries and many of their policymakers believe that developed countries, having
already accomplished a high level of satisfaction of their needs, now wish to suggest frugality and restraint on
consumption in the developing world.
From a production standpoint, developed countries have shifted a large number of production activities to
developing countries and transitional economies. China, for instance, is now considered the factory to the
world. Industrial production necessarily involves some degree of energy consumption and effluent discharge,
so developing countries are charged with exponentially increasing GHG emissions and pollution.
Clearly, there has to be some degree of equity. The onus of sustainability must be shared in an equitable
manner, with both developing and developed countries contributing their fair share.
Poverty and pollution

Poverty is the greatest polluter. This statement is attributed to the former Indian Prime Minister, Indira Gandhi,
at a speech at the 1972 Conference on the Human Environment is Stockholm. She theorised that the poor
were forced to pollute by poverty and unequal access to land, setting off a downward spiral where they were
impelled to destroy the natural resources on which they depend, thus deepening their poverty (Lean, George,
n.d).
While this is undoubtedly true, it must be placed in context. The statement was made in 1972, long before the
world became conscious of acceleration in anthropogenic GHG emissions. The oil crisis of 1973 was perhaps
the first shock that set off thinking about conservation of natural resources, and a few years later, ozone
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34
It can be readily accepted that the worlds poor, even in aggregate, are not leaders in depletion of non-renewable
resources. Neither can the poor be held responsible for the major part of the GHG emissions. The culprits are overconsumption by the rich, irrespective of which country they belong to, and the design, production and promotion
of plainly unsustainable products. The impact, however, is greatest on lower income groups, as illustrated in below.
Part A
depletion came into public consciousness, setting off the alarm about atmospheric pollution. Nevertheless, Mrs
Gandhis statement was one of the earliest to create a direct link between environmental concerns and poverty
alleviation.
Figure 2:1 Share of income derived from different capital stocks in country groupings
Intangible Capital
100%
80%
3991
14253
76193
Produced Capital
35339
Natural Capital
60%
40%
1150
4962
20%
0%
2075
Low
Income
4398
Lower-Mid
Income
16481
76193
10921
Upper-Mid
Income
9531
High
Income
Natural Capital is the wealth

derived from activities related to
nature. Produced capital refers
to wealth from the production of
goods. Intangible capital is the
difference between the total
wealth and natural + produced
capital.
Source: (Ferreira, Hamilton & World Bank 2006)

The poor depend much more on nature for their livelihoods than the rich. Thus natural changes for instance
those brought about by climate change due to man-made activities are likely to hit the poor much harder than
the rich, although ultimately they will affect all.
This underscores the need for countries to move towards a green economy by investing in natural capital as
a source of economic growth. Table 2:1 illustrates the link between poverty alleviation and wise management of
natural resources and ecosystem services.
Table 2:1 Poverty alleviation and natural resources

Natural-resource dependent sectors and ecosystem services
Brazil
Indonesia
India
Original share of GDP (%): agriculture, forestry, fisheries
6%
11%
17%
Adjusted share of GDP (%): including non market/ESS
17%
15%
20%
Share of ESS/non market goods of total income of the poor (%)
90%
75%
47%
Source: (TEEB 2010)

As can be seen, eco-system services and other non-market goods can account for as much as 47-90% of the
so-called GDP of the poor, highlighting their vulnerability.

Needs and aspirations
It is not only the basic needs of the poor which have to be met; it is also essential that their aspirations be fulfilled.
The desire to continuously improve the quality of life is inherent Abraham Maslows theory of need hierarchy
holds even today. The challenge therefore, is how to decouple the needs and aspirations from the effects on the
environment, as illustrated in Figure 2:2.
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Figure 2:2 The decoupling challenge
Interpolated from: (UNEP 2011)

Sustainable practices in both consumption and production can permit the fulfilment of both needs and wants
while minimising the effect on nature, i.e. with the minimum resource depletion and with minimum pollution.
Pressure to improve sustainable practices can lead to employment generation and stimulate innovation while
simultaneously protecting existing sources of income. It should be noted, however, that there are multiple
reasons for continued poverty, including lack of education, poor healthcare, political crises, poor access to
credit and the like. SCP alone cannot address all the causes of poverty; the solution lies in a holistic poverty
alleviation programme which includes SCP as one of the more critical elements.
SCP practices contributing to poverty reduction:

There are a number of initiatives which countries can take in their search for increased sustainability in
consumption and production. Many governments are adopting or have adopted sector-specific policies such
as Sustainable Public Procurement (Chapter 10), codes and standards for Sustainable Cities (Chapter 9) or
Sustainable Tourism (Chapter 11). Others have formulated policies which mandate land usage, waste disposal,
effluent discharge, energy efficiency, minimum wages, working conditions and the like and have implemented
these through legislation, fiscal incentives or a combination of both.
Simultaneously there are pressures on the private sector to exhibit a greater sense of Corporate Social and
Environmental Responsibility while individuals are equipped with tools such as ecolabels to enable them to
make the right/sustainable choice.
Most of these initiatives have been tried and stood the test of time. Chapter 10 on Sustainable Public
Procurement provides examples of reductions in CO2 emissions in Europe and Asia and shows how a planned
programme of increasing sustainability in public buying can lead to job creation, innovation and improved
efficiency. Poverty Alleviation Through Sustainable Tourism Development, a UNESCAP Publication (2003)
lays out how sustainable practices in the tourism sector can and do lead to a reduction in poverty. Virtually
every sector, in every country will have success stories to tell of how SCP has helped in reducing poverty. Some
of the SCP policy opportunities that can lead to a reduction in poverty are discussed further in Part B of the
publication.
In summary, the link between SCP and poverty alleviation lies in:
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36
Reduced demand for depleting resources and therefore increased availability.

Reduced effect on the worlds climate - and thus protection of the livelihoods of those dependent
on nature.
Improved health once again due to a reduction in aberrations in the climate, and also due to lower
levels of pollution of air, water and the earth.
Improved efficiency in the production of basic goods and services and consequently improved
affordability for the poor.
Increased job creation due to newly created products and services and new methods of production.
The significance of life-cycle thinking

Modern urban lifestyles involve the daily use of a large number of products (including services) but few people reflect
over how these products have been produced and what environmental and socio-economic impacts have been
caused along the way. In addition, few people think of what will happen to the products they are currently using
when they dont need them anymore how they can be reused, recycled, or taken care of safely as waste. When
assessing the sustainability performance of a product it is essential to use a life-cycle perspective and consider
all impacts associated with that product from cradle to grave, including consumption of natural resources as
well as emission of pollutants. This means to consider not only the environmental and socio-econommic impacts
of the product itself during its use phase, such as the energy consumption of a lap-top computer, but also the
resource consumption and pollution associated with all stages of production as well as end-of-life management. In
the case of a lap-top computer, large amounts of resources are consumed during the production stages in fact,
many times more than the weight of the computer itself and if the recycling is not done properly there could be
significant harm to humans and the environment and the depletion of already scarce metals.
Part A
2.2 Life-cycle thinking and a systems approach
Most products and services are part of increasingly complex industrial networks involving resource extraction and
refining, component manufacturing, final assembly, distribution, retail, use and recycling and waste management.
All of these processes consume energy and other resources, and most of them emit pollutants to the environment.
Figure 2:3 shows in a schematic manner the different stages of a product life-cycle.
Figure 2:3 A schematic product life-cycle covering all the major phases from raw materials
extraction to end-of-life management
Incineration
and disposal
Extraction of
raw materials
Recovery
Reuse and
recycling
Recycling
materials/components
Design and
production
Reuse
Use and
maintenance
Packaging and
distribution
Source: (UNEP/SETAC 2005)

A life-cycle perspective can be applied to product value chains as well as all kinds of systems (e.g. municipal
infrastructure such as water water treatment systems and solid waste management systems). Many studies have
been conducted of municipal infrastructure, such as wastewater treatment systems and solid waste management
systems. Such studies can be of particular interest for governments since they often play a central role in decisions
on investments in this kind of infrastructure.
A life-cycle perspective can reveal what stage of a products life-cycle is causing the largest environmental burden
and thereby help in guiding improvement efforts. For example, most of the environmental impacts of automobiles
are caused during the use phase (emissions of carbon dioxide and other pollutants) while for many food products
the highest environmental impacts are caused through food and material losses, highlighting the importance of
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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considering consumption behaviour when identifying the environmental hotspots of the food sector. Effective
policy responses need to take such differences into account.
Box 2:1 Life cycle impacts of common products
A life-cycle perspective will often reveal surprising facts about the environmental impacts associated with
products. For example, few consumers are aware of the huge amounts of water needed to produce cotton.
Scientific studies have calculated that the production of one pair of jeans requires around 8000 litres of water
(Water Footprint Network, 2012). Few people realise that when buying a pair of new jeans they are in fact
using up as much water as they would normally be drinking over a period of almost 11 years (assuming
that an average person drinks two litres of water per day). Similar calculations show for example that the
production of one cup of coffee requires 130 litres of water (Water Footprint Network, 2012). Few couples
that are getting married know that between 4 to 100 tonnes of rock (Valdivia & Ugaua 2012) had to be mined
in order to provide the 10 grams of gold needed to make two plain wedding rings.
Other studies have investigated the greenhouse gas emissions caused by food production and found that a
persons climate impacts can differ quite significantly depending on his or her dietary habits. In general, high
consumption of meat (especially beef) has a large climate impact while a vegetarian diet based on seasonal
products grown locally is the most climate-friendly. Since food production is resource intensive, and treatment
of organic waste generates greenhouse gases, waste of food is a major loss for society. For example, in the
UK it has been estimated that the environmental benefit of reducing food waste from households to zero
would be equivalent to reducing the number of cars by 20 per cent (WRAP 2011).
Burden shifting
Life-cycle thinking can also help in identifying when there is a risk for burden shifting, that is when a solution to
a problem at one stage of the life-cycle is causing increasing problems elsewhere. The risk for burden shifting
can be illustrated by the case of an energy efficient product that requires more materials for its production than
a conventional option with lower energy efficiency. If the energy needed for extracting and processing the extra
materials is taken into consideration, the more efficient product may not be using less energy over its life-cycle.
It is only by considering the whole life-cycle that its possible to say whether there is a risk for significant burden
shifting. It is of course essential that public policymakers are cognisant of when a policy intervention runs the
risk of shifting environmental burdens rather than reducing overall environmental impacts.
Figure 2:4 Life cycle of a washing machine

EXTRACTION OF
RAW MATERIALS
(metal ores, crude oil)
DESIGN AND PRODUCTION

(refining materials, producing
component, assembly)
PACKAGING AND
DISTRIBUTION
REUSE AND RECYCLE /

FINAL DISPOSAL
USE AND MAINTENANCE
DISPOSAL AND
INCINERATION
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38
Life-cycle thinking is a way of looking at the environmental and socio-economic impacts of products from a broad
perspective. This can be done in a qualitative manner, for example by discussing what burden shifting could occur
from a certain design change or from the introduction of a new public policy. In contrast, life-cycle assessment
(LCA) is a mainly quantitative methodology for compiling, analysing and generating life-cycle information. There are
generally four main stages in an LCA study:
Part A
Understanding life-cycle assessment
1. Goal and Scope Definition, where the objective and boundaries of the study are decided.
2. Inventory Analysis, where a model of the life-cycle is made and data on environmental emissions
and resource consumption from the different processes across the life-cycle are collected or calculated.
3. Impact Assessment, where the impact on the environment is assessed.
4. Interpretation, where significant issues are identified and conclusions are drawn. Sensitivity analyses,
identification of significant data gaps and major uncertainties can also be included.
Figure 2:5 LCA stages according to ISO 14040
Goal and scope

defination
Inventory analysis
Interpretation
Direct Applications:
- Product development
and improvement
- Strategic planning
- Public policy making
Impact
assessment
An LCA can have a narrow focus on one single kind of impact, such as greenhouse gas emissions. This can be
the case for example in studies to support carbon footprint labelling. However, in many cases, studies aim to be
comprehensive and therefore include a very large number of resources and pollutants. A technique often used for
dealing with this complexity is to group together all pollutants that cause similar kinds of harm, for example those
that are toxic to humans, those that are related with climate change and those that can lead to eutrophication.
Special factors are then used for converting the effect of different substances into a common unit. For example,
all gases that contribute to climate change are converted into carbon dioxide equivalents. The results of these
calculations are often given in the form of an environmental profile showing how a certain product contributes to
a number of environmental problems.
Comprehensive LCAs often require large amounts of data and take a fairly long time to conduct. It is therefore
hardly surprising that most LCAs have been conducted by large companies, industry federations and academic
institutions. However, as experiences of conducting such studies in different sectors and for different types of
products have grown, an increasing amount of life-cycle information has become available to other groups and
streamlined LCA approaches with lower data requirements have been developed. Based on the knowledge
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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generated in a large number of independent studies it has also been possible to develop rules of thumb to help
decision making. An example of this is the EU waste hierarchy which ranks a number of waste management
options from the most favoured (prevention) to the least favoured (disposal). Chapter 9 provides more details
on the role of the waste management hierarchy in policy.
Since the late 1980s a number of academic institutions, governments and private companies have been
engaged in developing methods and tools for LCA. Refer to the further reading section at the end of this
chapter for details of some of the key UNEP tools already available. A global community of researches and
practitioners of LCA has also emerged, and in some countries there are national centres or networks often
involving academia and business as well as government. A series of international standards the ISO 14040
series has also been developed. These standards define among other things a common terminology, a
systematic procedure and reporting requirements. At the global level, UNEP has been active in awareness
raising and capacity development, especially in collaboration with the scientific association SETAC (Society for
Environmental Toxicology and Chemistry) through the UNEP/SETAC Lifecycle Initiative.
LCA has traditionally focused only on environmental aspects, but in recent years there has been a growing
interest in conducting similar studies including also the social dimension of sustainability. Environmental
impacts consumption of resources and emission of pollutants are only one aspect of sustainable products.
Social aspects, such as decent salaries and proper worker protection, are receiving increasing attention and
attempts have been made to include such aspects in life-cycle studies in a systematic fashion. A recently
published report from the UNEP/SETAC Life Cycle Initiative (2011) takes stock of emerging methods for such
expanded sustainability assessments and provides a number of useful case studies. The cases illustrate
how the assessment of social aspects can highlight inappropriate labour conditions both upstream in supply
chains and downstream in recycling. Since responsible consumers may wish to avoid products that have
been produced under poor social conditions, or that generate hazards and social problems at end-of-life,
it is important that policymakers work to increase the transparency of product life-cycles and require the
private sector to improve access to information on environmental as well as social aspects from a life-cycle
perspective.
Box 2:2 LCA in developing countries
A challenge frequently faced when conducting LCAs in developing countries is that SMEs play a very significant
role in the economy. Collecting data on resource consumption and emissions of environmental pollutants from
such small enterprises often turns out to be difficult. Studies will therefore in many cases have to rely on guesses
and rough estimations. If data is very uncertain, it can be a good idea to use a scenario approach and make
calculations based on both best-case and worst-case assumptions. If it turns out that data from a certain
production process is having a large influence on the overall conclusions of a study, and the best-case and
worst-case assumptions lead to different overall results, its an indication that it might be worth spending more
efforts to establish correct and representative data.
As more LCAs are becoming available through open source options or research institutions, relevant findings
can be first identified before deciding on whether a full LCA is really needed for a better informed decision by
business, governments or consumers; this approach is called LC knowledge mining and is helping to obtain
good rules of thumb to assist decision making processes.
A systems approach to sustainability

It is possible to reduce the environmental impacts of most products quite substantially through design changes.
To some extent this is already happening and LCA studies are providing valuable input to these improvement
efforts. However, there is a limit to what can be achieved through an approach that basically takes existing
consumption patterns for given and only concentrates of reducing the impacts of this consumption. Given the
rapidly escalating consumption of natural resources and the increasing emission of greenhouse gases there
is a need also for approaches that explore radically different ways of providing utility or wellbeing to citizens/
consumers; we can call such changes systems innovations.
Air quality is a big issue in many large cities, but the strategy for making improvements can be very different.
Some strategies are more systems oriented and therefore more likely to be able to address the root causes.
We can distinguish between three principally different ways of addressing the issue.
1. Improve the environmental performance of vehicles, for example by introducing and enforcing
emission standards for cars.
2. Shift from modes of transportation with high environmental impacts, such as cars, to those with
lower impacts.
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40
Strategy number one is a kind of technical fix that can be made relatively easily. In fact, many countries already
have emission regulations for vehicles in place. However, even so, the air in many cities remains highly polluted and
the resulting negative impact on human health is considerable. In contrast, strategies number two and three are
more systemic in nature and address the underlying drivers of the problem. By addressing the underlying drivers
they can also generate additional social benefits, for example: increased use of public transportation reduces not
only emissions but also congestion, reduced need for long-distance work commuting leads to shorter commuting
time and potentially to more leisure time. These three strategies are of course not exclusive in order to improve
air quality substantially, governments will most likely have to pursue all three of them.
Part A
3. Reduce the need for transportation and mobility, for example through improved city planning and zoning.
In essence, taking a systems approach means to look at an issue in a broader context. It aims to address the
underlying causes of an identified problem rather than just trying to alleviate its immediate symptoms. It also
means being aware of, and trying to avoid, any burden shifting that may occur, i.e. understanding the side-effects
of a proposed solution. Biofuels offer a good example where such burden shifting can be significant. While it has
been shown that certain kinds of biofuels can reduce emissions of greenhouse gases if they replace fossil fuels, it
has also been shown that large scale expansion of biofuels could lead to reduced supply of food crops and feed
crops and thereby result in increasing food prices. In order for governments to be able to promote sustainable
development it is important that such systemic side-effects are identified at an early stage in the policy process.
It is also important that credible science-based methods are used for quantifying such side-effects to the extent
possible. These tools can help in making more informed decisions regarding policy options, however the studies
can never replace political judgement.
Figure 2:6 Holistic systems approach to SCP

The below diagram visually represents the holistic systems approach to SCP. It demonstrates some of the
many opportunities for intervention towards SCP throughout the life cycle of a product or service.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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Box 2:3 Complex value chains and multiple impacts challenges for life-cycle thinking
In many cases, as a result of globalisation, the processes that are part of a product life-cycle are spread
out geographically, often located even on different continents. Due to the complexity of these value chains
the many stages typically involved, the large number of materials and components that are often used
in a single product, and the geographic dispersion of the production and end-of-life treatment processes
it is extremely difficult for consumers to understand the full environmental impact of products and of
available options. Electronic products and cars are examples of complex products with highly globalised
supply chains, but also many other consumer products, such as food, clothing and furniture are increasingly
traded across borders.
Consumers who seek to understand the social conditions and environmental impacts in such global supply
networks will usually have a hard time finding the information they would like to see. Governments are facing
similar challenges when developing guidelines for green public procurement and when designing regulations
and other policy instruments intended to shift patterns of consumption and production.
In addition, environmental impacts are not one-dimensional. In reality, products can impact the environment
in many different ways such as through toxic releases, greenhouse gas emissions and nutrient discharges
to water. A comprehensive view of products environmental impacts requires that all significant impacts be
considered.
Why it is important to engage the private sector?

Most products and services are provided by the private sector. Businesses therefore play a pivotal role in
societys shift towards SCP. While consumers typically have limited knowledge on the full life-cycles of the
products they buy, producers are in a much better position to apply a life-cycle perspective. Medium sized
and large companies generally have capacity to scrutinise their value chains from a sustainability perspective,
to compile relevant data, to engage with actors upstream (suppliers) and downstream (waste managers and
recyclers) and to initiate improvements. Given the central role played by the private sector in managing product
life-cycles, policymakers need to encourage and incentivise companies to adopt a life-cycle perspective.
For the private sector, taking a life-cycle perspective involves looking at their activities in a broader context.
Life-cycle thinking requires investigation across the supply chains, not only of the direct suppliers but also
several steps upstream. This approach can be further elaborated within a Life Cycle Management framework,
that proposes the implementation of a management system towards continual improvements basing on
life cycle based approaches. It will consider impacts caused after the product has been sold and when it
eventually breaks or becomes obsolete. Companies that take a life-cycle perspective acknowledge that they
have a certain responsibility for the total impacts caused throughout the product life-cycle. They are also
acknowledging that they are in a position where they can influence the environmental impacts from the whole
life-cycle through the way they design their products and through their procurement decisions. Companies that
take a strategic approach to sustainability are usually very systematic in the way they investigate the life-cycles
of their products and search for improvement opportunities. They are also typically good at communicating
these improvements to the market and at translating their sustainability efforts into competitive advantages.
Businesses can gain significant triple bottom line benefits through adopting a life cycle perspective. Firms that
incorporate resource efficiency and a green economy in their strategy often experience positive impacts in
their financial metrics. As well as positive returns on investment in sustainable activities and improved financial
performance, businesses can improve social and environmental conditions, hence contributing to the firms
long term sustainability, growth and overall success. Through its extensive research and development for the
green economy, UNEP (2012), has identified the following business drivers for resource efficient and sustainable
business strategies:

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42
More resilient supply chains;

New investment opportunities;
Increased consumer demand for sustainable goods and services;
Sales growth and duration of sales;
Training and job creation;
Reduced dependency on natural resources;
Mitigation against the negative financial risk from environmental impact.
Producers of laundry detergents were one of the first industries to conduct LCAs in order to see how their
products could be reformulated for lower environmental impacts. It was soon found that a very significant
environmental aspect of clothes washing is the energy consumption for water heating. Based on this insight,
the manufacturers developed new detergents that would be effective at lower temperatures. This is a good
example of a case where the producers saw their product as part of a larger system and explored both how
the environmental impact of that larger system could be reduced and what role their particular product could
play. By using life-cycle thinking to redesign their product they reduced the life-cycle environmental impact
and at the same time managed to save money for their customers.
Source: (European Commissions 2010b)
Part A
Box 2:4 Private sector opportunities using life cycle thinking
Western Sahara
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Further reading 2
SCP for Poverty Alleviation explores the type and quality of the linkages between
SCP and poverty alleviation. A theoretical framework is constructed and supported by
a number of case studies, which identify and where possible quantify the combination of
economic, social and environmental gains secured by transitioning towards SCP.
United Nations Environment Programme 2012, SCP for Poverty Alleviation, UNEP, Paris.
Growth, Poverty and the Environment is an excellent essay focussing on the links
between growth, poverty reduction and environmental sustainability. It can be found
in the Global Monitoring Report 2007, assessing the contributions of countries and
international financial institutions towards achieving the Millennium Development Goals.
The World Bank 2007, Global Monitoring Report 2007, The World Bank, Washington.
Towards a life cycle sustainability assessment: making informed choices on

products provides a state-of-the-art introduction to Life Cycle Assessment (LCA). It
covers both traditional LCA, which only analyses products environmental impacts, and
new developments like Life Cycle Costing (LCC) and Social LCA. Social LCA uses a
methodology similar to environmental LCA but focuses on practices that are socially
unsustainable, such as dangerous and unfair working conditions and human rights
violations. The report is written by a group of leading scholars in the field of LCA, but it is
very accessible also for non-experts.
United Nations Environment Programme 2011. Towards a life cycle sustainability
assessment: making informed choices on products, UNEP, Paris.
Global Guidance Principles for Life Cycle Assessment Databases A Basis

for Greener Processes and Products, provides guidance principles for Life Cycle
Assessment (LCA) databases; this includes how to collect raw data, how to develop
datasets and how to manage databases. It provides the bridge between the data users
and the data providers, making basic information easily accessible for computing the
environmental footprints of materials and products that are key to make and judge green
claims and to allow institutional and individual consumers to make informed consumption
choices.
UNEP/SETAC 2011, Global Guidance Principles for Life Cycle Assessment Databases - A
Basis for Greener Processes and Products, Paris, France.
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44
Part A
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page 45
SCP
Part A
The 10YFP and International Collaboration

on SCP
x
x
SCP?
Excellent
Good
Average
Poor
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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The 10YFP and International Collaboration

on SCP
Key Points
The formal adoption of the 10YFP at Rio+20 showed strengthened
commitment from countries to shift towards SCP, and firmly
established the role of SCP in sustainable development in the
foreseeable future.
The 10YFP is a global framework of action to enhance international
cooperation to accelerate the shift towards SCP in both developed
and developing countries (UNEP 2013).
The Marrakech Process has, over the last decade, been the main
channel for intergovernmental collaboration specifically on SCP.
There are a number of regional platforms across the world
collaborating to facilitate the implementation of SCP activities.
This chapter provides a brief history of SCP in international policy. It details the 10-year framework of
programmes for SCP (10YFP) and concludes with a discussion of global collaboration on SCP policy.
3.1 The evolution of SCP in international policy

The adoption of the 10-year framework of programmes for SCP (10YFP) at Rio+20, is the culmination of joint
efforts for a strong international mandate to enhance collaboration and accelerate the transition towards SCP.
Through initiatives at local and national level, sub-regional and regional platforms that highlighted common
characteristics and the work of the Marrakech Process that galvanised and propelled the international
SCP agenda, the 10YFP highlights both the needs and opportunities for governments, UN Agencies and
stakeholders to operate in concert. To better understand the 10YFP, it is useful to know the evolution of SCP
within the international policy agenda.
From Stockholm and the birth of UNEP to the Rio+20 conference

A fairly recent history of international sustainability policy can be dated from the 1972 UN Conference on the
Human Environment. This was the same year as the release by the Club of Rome of the landmark publication
The Limits to Growth with a clarion call to shift course away from the economic growth paradigm in order to
avoid overshoot and collapse (Meadows et al. 1972). It wasnt until 1992 at the UN Conference on Environment
and Development held in Rio de Janeiro, that for the first time at a top level international agenda-setting
policy meeting, world leaders acknowledged that the major cause of the continued deterioration of the global
environment is the unsustainable pattern of consumption and production (UN 1992a). Seven years later,
in 1999, the UN General Assembly updated its Guidelines for Consumer Protection to include a section on
sustainable consumption (see Box 3.1).
Figure 3:1 A history of SCP in international policy
1972
UN Conference on
the Human Environment
(Stockholm conference)
1972
Publication of "The Limits to Growth"
by Club of Rome
1997
CSD 5, Rio+5
1992
UN Conference on
Environment and
Development
(Rio Conference),
Agenda 21
1999
UN updates Guidelines for
Consumer Protection to
include sustainable consumption
2002
UN World Summit on
Sustainable Development,
Johannesburg
2012
CSD 19, negotiated text for
10YFP (not adopted)
2012
UN Conference on
Sustainable Development
(Rio+20, 10YFP Adopted)
73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
1972
page
48
1995
2003
Oslo Ministerial
Marrackech Process
Roundtable on
launched
Sustainable Production
and Consumption,
proposal for International
Work Programme
2010
CSD 18, review of
10YFP development
In 1985, prior to the Rio conference in 1992, the UN General Assembly adopted the UN Guidelines for Consumer
Protection, an international framework that provides support for activities of consumer organisations as well as
guiding principles for the development of national consumer protection legislation (UN 2003). The guidelines
included the rights to: safety, information, choice, representation, education, redress, a healthy environment and
basic needs. In 1999, to reflect growing concerns in unsustainable patterns of consumption and production and
the need to bolster government and other stakeholder efforts to promote sustainable consumption, the guidelines
were expanded with Section G on Promotion of Sustainable Consumption. Recently, new developments in
technology, forms of social organisation, and business practices, present new challenges that are not currently
reflected in the Guidelines. The United Nations Conference on Trade and Development (UNCTAD) has announced
that it will start a new revision of the guidelines, to be tabled for adoption in 2014.
Part A
Box 3:1 United Nations guidelines on sustainable consumption
The guidelines call on Governments (in partnership with other stakeholders) to take leadership in several actions,
including:
Developing and implementing strategies that promote sustainable consumption through a mix of
policies.
Removing subsidies that promote unsustainable patterns of consumption and production.
Encouraging the design, development and use of products and services that are safe and energy and
resource efficient, considering their full life-cycle impacts.
Impartial environmental testing of products.
Safely managing environmentally harmful uses of substances and encouraging the development of
environmentally sound alternatives for such uses.
Developing indicators, methodologies and databases for measuring progress towards sustainable
consumption at all levels.
The final Declaration from Rio (UN 1992b) proclaims that to achieve sustainable development and a higher quality
of life for all people, States should reduce and eliminate unsustainable patterns of production and consumption
and promote appropriate demographic policies. Chapter four of Agenda 21, the blueprint for action resulting from
Rio, was dedicated to changing consumption patterns. To achieve SCP, Agenda 21 called for actions towards
two broad objectives:
a. Promote patterns of consumption and production that reduce environmental stress and meet the basic
needs of humanity.
b. Develop a better understanding of the role of consumption and how to bring about more sustainable
consumption patterns.
Box 3:2 Under-consumers and over-consumers: A multipronged approach as identified in Agenda
21 (UN 1992)
International SCP policy recognises the imbalances in consumption patterns between developing countries
and industrialised countries. Coming from the Rio conference, it was acknowledged through Agenda 21 that:
Although consumption patterns are very high in certain parts of the world, the basic consumer needs of a large
section of humanity are not being met. This results in excessive demands and unsustainable lifestyles among
the richer segments, which places immense stress on the environment. The poorer segments, meanwhile, are
unable to meet food, health care, shelter and educational needs.
It was cautioned that in pursuing sustainable development at the international level, any measures must take
fully into account the current imbalances in the global patterns of consumption and production. It recommends
a multipronged strategy focusing on demand, meeting the basic needs of the poor, and reducing wastage
and the use of finite resources in the production process this allows for populations that are over consuming
to reduce their consumption levels, while those with populations that are yet to meet their basic needs should
increase their consumption levels in order to have sustainable livelihoods and an improved quality of life.
Agenda 21 asks for special attention on extraction of, and efficient use of natural resources as well as pollution
reduction. It further calls for research to assess the relationship between production and consumption,
environment, technological adaptation and innovation, economic growth and development, and demographic
factors (UN 1992b). One of the most notable propositions from Rio in 1992 that has come to be considered
central to SCP is the call for new systems of national accounts that do not depend on economic growth but
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rather on new concepts of wealth and prosperity which allow higher standards of living through changed
lifestyles and are less dependent on the Earths finite resources and more in harmony with the Earths carrying
capacity. One response to the need for higher standards of living through changed lifestyles is taken up
under the 10YFP through the programme on Sustainable Lifestyles and Education.
From Rio to Johannesburg: the beginning of the Marrakech Process on SCP

The central role of SCP in achieving sustainable development was reaffirmed at the World Summit for
Sustainable Development in 2002 (Johannesburg). The Johannesburg Plan of Implementation stated that
poverty eradication, changing unsustainable patterns of production and consumption and protecting and
managing the natural resource base of economic and social development are overarching objectives of, and
essential requirements for, sustainable development (UN WSSD, 2002). To translate SCP objectives into action,
the Johannesburg Plan of Implementation called for the development of: a 10-year framework of programmes
in support of regional and national initiatives to accelerate the shift towards sustainable consumption and
production to promote social and economic development within the carrying capacity of ecosystems by
addressing and, where appropriate, delinking economic growth and environmental degradation through
improving efficiency and sustainability in the use of resources and production processes and reducing resource
degradation, pollution and waste (UN 2003). This would form the foundation of the so-called Marrakech
Process.
Over the last decade, global efforts towards SCP have been mainly coordinated under the Marrakech Process
(MP) an informal multi-stakeholder process platform to promote the implementation of policies and capacity
building on sustainable consumption and production (SCP) and to support the development of a 10 Year
Framework of Programmes on SCP. The process was led by UNEP and UN DESA at the global level, with an
active participation of national governments, development agencies businesses and other stakeholders. In
June 2003 UNEP and UNDESA organised the first international meeting of 115 experts from 59 countries and
9 international organisations to start the process of developing the SCP global framework of programmes. As
the meeting where the process began was held in Marrakech, it came to be called the Marrakech Process.
For 10 years, the process involved regional consultations to identify priority issues and areas that would form
the basis of programmes, formation of topical international task forces and dialogues with different stakeholder
groups.
Under the MP, regional consultations were developed to promote awareness and identify priorities and needs
for SCP. The main outcomes can be summarised as follows:
Development of regional SCP Strategies in Africa, Asia-Pacific, Latin America, Europe and West
Asia.
Development of National SCP Programmes through capacity building and implementation
across15 countries.
Seven Task Forces, voluntary initiatives led by governments, in cooperation with multi-stakeholder
partners that focus on developing and implementing SCP policies, business management practices,
consumer action, capacity building and projects.
Over 70 initiatives on SCP with 33 demonstration and pilot projects implemented worldwide.
For example, the following priorities for SCP were identified through Asian regional consultations under
the Marrakech Process: energy, waste and water as critical sectors; poverty as a cross-cutting issue;
and as approaches, green public procurement, development of fiscal instruments, resource efficient and
cleaner production and greening business and markets. Some regions developed regional strategies and
implementation mechanisms with regional and national ownership, which were then endorsed by the relevant
regional institutions and countries.
Some of the main mechanisms for international collaboration under the MP were through the Marrakech
Task Forces (MTF) voluntary initiatives lead by countries and UN agencies and with a north-south multistakeholder participation. The MTFs networked key stakeholders, developed guidelines for key policy areas,
and undertook concrete projects and programmes at global, regional, national and local levels in order to
develop and/or improve SCP tools and methodologies. There were seven MTF as shown below, all voluntary,
and each led by a national government.
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50
Part A
Figure 3:2 Task forces under the Marrakech Process
Source: (UNEP 2011)

Following the Johannesburg mandate, the Marrakech Process supported the regional SCP Strategies in most
regions and in around 20 countries. Some countries have initiated SCP programmes, others specifically designed
National Action Plans on SCP, most with laws, policies and programmes aimed at different sectors and elements
such as waste reduction/disposal, pollution, resource conservation, public procurement, etc. Brazil, Burkina Faso,
Colombia, Cote dIvoire, Croatia, Dominica, Ecuador, Ghana, Indonesia, Kazakhstan, Mali, Mauritius, Senegal, St
Lucia, Tanzania, Uganda and Zambia have dedicated SCP or sustainable development strategies. China and the
Republic of Korea have Green Growth strategies, which address several objectives towards SCP. The European
Commission came out with the Sustainable Consumption and Production and Sustainable Industrial Policy (SCP/
SIP) Action Plan in 2008. Canada, like many countries, does not have a national strategy for SCP but has specific
policies for different sectors, such as the Canadian Green procurement Policy of 2006 which influences over 5
billion USD of commodities (UNEP 2012). These national programmes and initiatives open up gateways through
which countries can directly participate and benefit in implementation of their strategies with support of the 10YFP
(IISD 2010). The 10YFP will facilitate adaptation and replication of successful initiatives, as well as scaling them
up where possible.
A review of the progress towards development of the 10YFP was done by the Commission for Sustainable
Development (CSD) at the 18th session, in 2010. It examined some of the barriers and constraints in implementation,
as well as lessons learned and best practices of SCP. Some of the challenges included dealing with the extremes
of wealth over-consumption on the one hand and under-consumption on the other hand under a common
programme. This was particularly important as poverty was becoming more visible in some industrialised countries
while a new consumer class was over-consuming in some developing countries. SCP was identified as a pressing
issue both for developed and developing countries. At the discussion there were challenges on how to concretely
define the programmes SCP being a broad area that covered many sectors and issues.
The following cycle (CSD 19) delegates negotiated and agreed upon a draft text for the 10YFP, including vision,
goals, functions, organisation structure, means of implementation and an initial and not exhaustive list of 5
programmes.
Rio +20 and the 10YFP

At the UN Conference on Sustainable Development (Rio +20) in 2012 governments reiterated messages from
Agenda 21 and the Johannesburg Plan of Implementation, and declared We recognise that fundamental changes
in the way societies consume and produce are indispensable for achieving global sustainable development (UN
2012). The negotiated text of the 10YFP from the CSD was formally adopted! This concrete decision from Rio+20
showed strengthened commitment from countries to shift towards SCP, and firmly established the role of SCP in
sustainable development in the foreseeable future.
Paragraph 226 of The Future We Want: Rio +20 Outcome Document reads We adopt the 10-year framework of
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page 51
programmes on sustainable consumption and production patterns, as contained in document A/CONF.216/5,

and highlight that the programmes included in the 10-year framework are voluntary (UNEP 2012).
What is the 10YFP?

As defined by UNEP (2013) the 10YFP is a global framework of action to enhance international cooperation
to accelerate the shift towards SCP in both developed and developing countries. It aims to develop, replicate
and scale up SCP and resource efficiency initiatives, at national and regional levels, decoupling environmental
degradation and resource use from economic growth, and thus increase the net contribution of economic
activities to poverty eradication and social development. The objectives of the 10YFP are listed as follows.
Accelerate the shift towards SCP, supporting regional and national policies and initiatives.
Contributing to resource efficiency and decoupling economic growth from environmental degradation
and resource use, while creating decent job and economic opportunities and contributing to poverty
eradication and shared prosperity.
Mainstream SCP into sustainable development policies, programmes and strategies, as appropriate,
including into poverty reduction strategies.
Support capacity building and facilitate access to financial and technical assistance for developing
countries, supporting the implementation of SCP activities at the regional, sub-regional and national
levels.
Serve as an information and knowledge platform on SCP to enable all stakeholders to share tools,
initiatives and best practices, raising awareness and enhancing cooperation and development of
new partnerships (Global SCP Clearinghouse).
Implementation will be governed by an organisational structure which includes: a Board, a UN Interagency
Coordination Group, a small Board, National and Stakeholders Focal Points, and a Member State body to
receive reports.
The means of implementation are through voluntary contributions from all sources, a Trust Fund administered
by UNEP and the Global SCP Clearinghouse.
The Trust Fund will receive and mobilise resources in to develop and support SCP programmes in
developing countries and countries with economies in transition. It will mainly provide seed money
for capacity building activities delivered through its programmes. The 10YFP will attract funding from
a range of bilateral and multilateral sources.
The online Global SCP Clearinghouse was launched in May 2013. It is an online community bringing
together SCP stakeholders worldwide through information, knowledge sharing and cooperation
on SCP. There are already more than 1,000 members worldwide signed up to the Global SCP
Clearinghouse (www.scpclearinghouse.org).
Box 3:3 What are the 10YFP programmes?
Programmes are at the core of the 10YFP. They will contribute to further promoting SCP, bringing together
existing initiatives and partnerships working in similar areas, building synergies and cooperation among
stakeholders to leverage resources towards mutual objectives and minimise duplication of on-going efforts.
The 10YFP adopted text includes an open and indicative list of five programmes, based on experience
gained throughout the Marrakesh Process and other SCP initiatives. Additional programmes might be
added based on countries demand, certain criteria and approval of the 10YFP Board.
1. Consumer information
2. Sustainable lifestyles and education
3. Sustainable public procurement (SPP)
4. Sustainable buildings and construction
5. Sustainable tourism, including ecotourism
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52
Collaboration for successful SCP

Given the broad scope and challenges of shifting established patterns of consumption and production,
collaboration among various stakeholders, at different levels of governance and across sectors - has been
very instrumental towards meeting SCP objectives. International collaboration has sought to establish a shared
understanding among governments, industries and civil society actors of the need for SCP, as well as working
mechanisms that should help deliver the global objectives. At the regional and sub-regional level collaboration has
facilitated a contextual understanding of the specifics of SCP to provide a working interpretation that reflects the
cultural dynamics and behavioural patterns of each region. For example, while in Europe there has been extensive
research on European consumer and producer behaviour and several related Directives by the European Union
member states, in Asia part of the objective of collaboration has been to develop an operational framework
for Asia rather than trying to fit it to a European model. In Africa, with support of Germany, governments have
endorsed a regional 10-year framework of programmes.
Part A
3.2 International collaboration on SCP
Global Collaboration
At the international level, some of the key mechanisms of collaboration have been through multilateral environmental
agreements (MEAs), the Marrakech Process and regional platforms addressing different sustainability issues.
The negotiation and implementation of MEAs are perhaps the most established mechanisms of global collaboration
in changing existing patterns of consumption and production. MEAs usually have specific objectives, geared
towards solutions for a clearly identified issue. Although quite often the MEAs do not expressly mention SCP,
the objectives often reflect the cross-cutting characteristic of SCP and the solutions ultimately affect patterns of
consumption and production. Some typical MEAs with SCP related objectives include the Basel Convention, the
Stockholm Convention and the Convention on Biological Diversity.
Regional collaboration
The recent UNEP (2012) report Global Outlook on Sustainable Consumption and Production Policies: Taking
Action Together provides a comprehensive account of collaborative initiatives on SCP at the regional levels, a few
of which are mentioned below.
In 2000, the African network of National Cleaner Production Centres (NCPCs) started to convene regional
roundtables on SCP (ARSCP). The ARSCP held in Casablanca, Morocco in 2004 developed the 10YFP on SCP
in Africa as part of the global Marrakech Process on SCP. The African 10 YFP embodies four main thematic priority
areas: energy; water and sanitation; habitat and sustainable urban development; and industrial development. The
plan further points out priority projects and activities in each thematic area. Development and implementation of the
African 10YFP was supported primarily by the Marrakech Taskforce on Cooperation with Africa, led by Germany.
The African 10YFP on SCP was endorsed by the African Ministerial Conference on Environment (AMCEN), issuing
the Dakar Declaration on the promotion of SCP in Africa. The Declaration emphasises the importance of linking
SCP with the challenges of poverty and meeting basic needs. It calls upon nations to mainstream SCP in the
national, sub-regional and regional activities.
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Themes
Priority Areas
1. Energy
i. Assess and identify best practices on renewable energy used along the life cycle of
agriculture, including policy analysis and recommendations.
ii. Implement projects on renewable energy technologies in rural agriculture, by providing
direct assistance to local communities.
iii. Promote and develop mini-hydropower for small rural enterprises.
iv. Promote and support increased use of improved wood fuel stoves by households with
appropriate financing mechanisms to support households with credits to install better
wood fuel stoves.
v. Promote the use of energy-efficient light bulbs and electric appliances through affordable
prices and information to consumers.
vi. Develop campaigns on environmental education and information for sustainable use
of energy through schools and other institutions in cooperation with non-governmental
organisations (NGOs) and local communities.
2. Water and
Sanitation
Promote the implementation of the MDG on water and sanitation by mainstreaming SCP
issues through:
i. Knowledge management of best practice in Africa through documentation of best
practices, identification of opportunities and making investments.
ii. Transferring technology in water and sanitation by supporting efficient use of water.
iii. Carry out awareness and education on SCP in water resources by developing manuals
on best practices, campaigns and training.
iv. Replicate successful experiences in safe reuse of waste water by implementing pilot
projects.
v. Integrate SCP and a life-cycle approach in integrated water resource management
(IWRM) and carry out surveys, awareness raising and dissemination of results.
3. Habitat and
Sustainable
Urban
Development
i. Promote integrated solid waste management (ISWM) in order to improve the waste
management for municipal and industrial waste, and promote waste prevention,
minimisation, reuse and recycle.
ii. Promote sustainable urban mobility by better management of the infrastructure for
transportation as a way of improving the health of people and environment.
iii. Reduction of vehicular emissions from the use of vehicles and reduce the use of
unqualified polluting cars.
iv. Sustainable urban development through the upgrading of unplanned settlements,
as well as employing city development strategies, sustainable building designs and
constructions.
4. Industrial
Development
i. Strengthen the capacity of the African Roundtable on Sustainable Consumption and

Production and its members.
ii. Explore the expansion of value chains for agricultural products and by-products by
expanding their industrial uses.
iii. Improve markets for sustainable goods and services to ensure competitiveness
irrespective of destination market.
Part A
Figure 3:3 African 10YFP on SCP: List of themes and priorities
Source: (UNEP 2005)

Rather than just stand alone, SCP policies and programmes are quite often embedded in broader policy platforms.
As an example, recognition for SCP is enshrined in Association of Southeast Asian Nations (ASEAN) key
documents, among them the ASEAN Declaration on Environmental Sustainability. The ASEAN Vision 2020, which
charts a future for ASEAN countries, aspires for a clean and green ASEAN with fully established mechanisms
for sustainable development to ensure the protection of the regions environment, the sustainability of natural
resources and the high quality of life of its peoples. The ASEAN+3 Leadership Programme on Sustainable
Production and Consumption was launched in 2008 as a training programme for governmental officials, media
and communication officials, youth, and women under the coordination of United Nations University/Institute
for Advanced Studies (UNU/IAS) as a contribution towards the implementation of the ASEAN Environmental
Education Action Plan (AEEAP 2008-2012). More recently, ASEAN Member States agreed on an ASEAN Forum
on SCP (see Box 3.4).
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Recognising the need for an ASEAN cooperation mechanism, Member States formed an ASEAN Forum on
SCP in Indonesia in 2011. The Forum is a voluntary policy mechanism that will serve in the following ways:
Provide a venue for policy dialogue and collaboration on SCP national and regional strategies, planning
and implementation including technical support to AMS.
Provide a venue for discussions on research and innovation for SCP patterns that can support tailored,
effective policy design and actions.
Develop a resource pool and explore opportunity for capacity building to support governments
and other stakeholders at national and regional levels in a transition to SCP, and to support public
awareness campaigns on SCP.
Encourage discussion on emerging issues on SCP between AMS including the development of links
with the relevant ASEAN Working Groups to promote cooperation on SCP between AMS and global/
regional initiatives on SCP.
Part A
Box 3:4 ASEAN forum on SCP
The establishment of the ASEAN Forum on SCP showcases the increased political interest of the South-East
Asia countries on SCP issues.
Several sustainability policy platforms tend to be subregional in geographic focus. Examples include
the Northeast Asian Sub-regional Programme of Environmental Cooperation, the North West Pacific Action Plan,
the South Asia Cooperative Environment Programme and the Pacific Islands Forum. In Central America, the SubRegional Policy for Sustainable Public Procurement, steered by the Central American Commission for Environment
and Development (CCAD), aims to redirect public procurement by governments in the region towards the purchase
of products and services that integrate environmental and social criteria, as shown below.
Lewis Akenji
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Recognising public procurement as a powerful tool, the Central American Commission for Environment and
Development (CCAD) has launched an initiative to promote sustainable public procurement (SPP) at the regional
level and by national governments. In response to the CCAD initiative, the organisations secretariat formulated
a proposal for a Regional Policy on Public Procurement. This was developed with the purpose of ensuring cost
efficiency in procurement by governmental institutions, while at the same time identifying opportunities for more
efficient use of materials, resources and energy, contributing to the protection of human health and fostering the
development of a regional market for sustainable and innovative goods and services. This proposal was further
discussed with the members of the Regional Technical Committee on Cleaner Production, who supported the
organisation of national consultations in the member countries of CCAD during 2010. Key national stakeholders
involved in these consultations included representatives of the Ministries of Environment, Economy, Agriculture,
Tourism, and Labour, national procurement authorities and civil society organisations. Recommendations from
member countries were then incorporated to improve the final text of the Regional Policy.
Part A
Box 3:5 The Central American Commission for Environment and Development initiative on sustainable
public procurement
The policy foresees national and regional interventions addressing four specific areas:
I. institutional, to ensure that relevant information and methodologies are adapted to the specific context
of the countries;
II. legal, ensuring that SPP is included in a coherent way in member country legislation and that their
approaches are harmonized;
III. technical, providing support to the providers of goods and services in the shift towards more
sustainable production practices;
IV. information and capacity building, to develop the essential technical skills for implementing SPP in
both the public and the private sector.
The regional procurement policy builds on a number of core sustainability practices, among them environmental
responsibility, pollution prevention, extended producer liability, substitution of materials and substances using
less polluting alternatives, and continuous improvement and innovation in product life cycles.
Having concentrated its efforts in 2010 on formulating this regional policy and getting it approved, CCAD is
now focusing on its implementation in the Central American countries, in partnership with the UN and other
institutions. This process will build on results already achieved in pilot projects within the sub-region. Particular
reference will be paid to the Green Procurement guidelines developed by the Centro de Gestin Tecnolgica e
Informtica Industrial (CEGESTI, Costa Rica), and to the Marrakech Task Force approach on Sustainable Public
Procurement.
Source: (UNEP 2012)
Some platforms of collaboration are created among countries of similar political and economic
interests, where transboundary consumption and production issues play a facilitating role. Among Arab States, in
its 2009 meeting the Council of Arab Ministers Responsible for Environment (CAMRE) endorsed the Arab Regional
Strategy for SCP. The strategy identifies six priorities: energy; water resources management; waste management;
rural development and eradication of poverty; education and sustainable lifestyles; and sustainable tourism. Three
Roundtable meetings on SCP have been organised since it was developed in 2008.
In Asia, the Tripartite Environment Ministers Meeting (TEMM) has been bringing together Japan, the Republic
of Korea and China since 1999 for cooperation concerning climate change, biodiversity conservation, pollution
control and transboundary movement of e-waste, and most recently environmental labelling standards.
In the European Union, the SCP and Sustainable Industrial Policy (SCP/SIP) Action Plan (COM(2008) 397/3) build
on the European Commissions 2003 Integrated Product Policy, which focused on minimising the environmental
impact of products by examining their life cycles and taking action wherever it can be most effective. The
Integrated Product Policy uses both mandatory and voluntary tools, including economic instruments, substance
bans, voluntary agreements, environmental labelling and product design guidelines while favouring marketdriven approaches that take account of concerns over competitiveness. The 2008 SCP/SIP Action Plan is the
major overarching SCP policy document at the EU level. It aims to foster SCP by improving the environmental
performance of products throughout their life cycles and stimulating demand for more sustainable goods and
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Part A
production technologies. For example, the EU expects stronger and more far-reaching eco-labelling and energy
labelling, under the EU Ecolabel regulation completed in 2009 (EC Regulation (EC) 66/2010) and the Energy Label
Directive 2010/30/EU. The new EU Ecolabel regulation will include 40-50 product groups by 2015. It has a faster
process for developing criteria and a simplified assessment procedure. Annual fees are reduced and there is more
harmonisation with other national and global ecolabelling initiatives.
Other collaboration platforms are more focused on specific issues. A typical example is the Regional 3R
Forum in Asia. It seeks to use the concept of reduce, reuse and recycle to bring together ministers of environment
for high-level meetings and collaboration, on the problem of growing waste that has paralleled rapid urbanisation
in the region.
One of the priority areas of the African 10YFP on SCP is energy. The Southern African Development Community
(SADC) has a subregional framework on renewable energy. The framework recommends the use of fiscal incentives
as drivers for renewable energy technology development and utilisation through developing a level playing field
and adopting fair pricing mechanisms; the use of the polluter-pays principle in order to address externalities;
gender mainstreaming and the creation of renewable energy enterprise zones and prioritisation of renewable
energy technologies. The framework has set recommendations on how member states should align their policies
in the sector; collectively develop and nurture skills to implement renewable energy projects; pool resources for
development of appropriate renewable energy technologies; and facilitate trade in these technologies. The ultimate
objective is to increase citizens access to affordable energy services and promote sustainable development.
The Arab Economic Summit held in Kuwait in January 2009 recognised the need for environmental preservation
and cooperation on energy issues in the Kuwait Declaration. It emphasises the need for Arab cooperation in
particular for using energy more efficiently as a means for realising SD. This should be achieved by strengthening
the existing Arab power grid interconnections, establishing an Arab market for electricity, enhancing and widening
natural gas networks, increasing the participation of the private sector in its investment and administration,
broadening the usage of renewable energy technology and nuclear energy for peaceful purposes in production
processes.
Financing for SCP also offers collaboration opportunities. Such is the case with the SWITCH-Asia Programme.
It was set up by the European Commission in line with its Strategy Document for Regional Programming in Asia
and provides funding opportunities of 152 million over the period 2007-2013. The aim is to promote SCP among
small and medium enterprises and support Asian policymakers in shifting towards SCP practices. In addition
to promoting specific SCP practices, the projects employ innovative replicating mechanisms such as voluntary
agreements, publicprivate partnerships, and upgrading of technical standards or reinforcement of existing SCP
service providers to make countries self-sustainable on the market.
Box 3:6 Three strategic components of SWITCH-Asia Programme:
Through project grants, projects are funded which can produce quantifiable reductions of CO2 emissions and
consumption. So far, SWITCH-Asia has funded 47 projects in 15 Asian countries in areas such as greening
supply chains, marketing for eco-products, green public procurement, cleaner production, eco-labelling and
products for the poor.
The Network Facility provides support for projects funded under the SWITCH-Asia Programme in order to
increase the quality and impact of project activities, along with facilitating the uptake of successful results by
Asian policymakers.
The Policy Support component, launched in 2010, aims to strengthen the formulation and implementation of
SCP policies in Asia. On a regional level this is done primarily through capacity building in collaboration with
UNEP. Furthermore, national Policy Support components, managed by EU Delegations, focus on selected
countriesMalaysia, Thailand, Indonesia and the Philippinesthat have already gathered experience in applying
SCP tools.
Although this part has focused on collaboration among governments, there are other types of effective,
multistakeholder collaboration. An example is the International Standardisation Organisation (ISO), a network of
national standards institutes, both public and private, from over 160 countries. ISO is the worlds largest developer
and publisher of management systems and guidance standards - one of which is the SCP-relevant ISO 14000
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IUCN (the International Union for Conservation of Nature) is an example of a network of collaboration among
over 1,000 governments and NGOs, and 11,000 scientists in more than 160 countries. An example of how it
supports SCP objectives is through its work on biodiversity and ecosystem services in which it supports national
plans for more efficient use of natural resources in a range of industries and consumer groups, including mining
and tourism.
Part A
suite on environmental management. These standards enable both public and private organisations to identify and
manage impacts of their operations from a life-cycle perspective.
An example of more regionally focused multistakeholder collaboration is in bringing together research, policy
and practice communities. Examples include the North American Roundtable for SCP. As in most regions, there
is an Asia-Pacific Roundtable for SCP (APRSCP). It was started in Bangkok in 1997 mainly to promote Cleaner
Production. However, indicative of the general trend to shift from strictly technical approaches such as ecoefficiency to more socio-technical approaches that include consumer behaviour and psychology, the forum was
renamed and given a new focus on the broader subject of SCP. The roundtable is held every 18-24 months,
bringing together industrialists, environmental professionals, university academics and researchers, as well as
policymakers.
Promoting SCP through regional collaboration

International collaboration has facilitated various stakeholders, at different levels of governance and across sectors
to find meaningful ways of addressing the scope and challenge of shifting established patterns of consumption
and production. At the regional and sub-regional levels, collaboration has allowed neighbouring countries, interrelated industries, similar production and consumer cultures, to develop working interpretations that reflect their
cultural dynamics and behavioural patterns. It is therefore important that, in their development of national SCP
programmes, countries should try to link this up to international platforms that can offer implementation support.
The 10YFP presents such an opportunity; for strengthened collaboration with a focus on implementation.
Notably, the SCP Clearinghouse would rally experts needed to support implementation of initiatives, resources for
training, provide options for seeking project partnerships and funding, and highlight a vast number of projects and
experiences that stakeholders could learn from or adapt and replicate to suit their own context. Under the 10YFP
it is also possible to set up programmes with a regional focus. Thus countries could champion programmes that
immediately respond to regional priorities and further enhance regional collaboration, in the meantime having
access to tools for policy implementation and political support from an international mandate.
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Resolution A/CONF.216/5 A 10-year framework of programmes on sustainable

consumption and production patterns is the excerpt from the official resolution from
The United Nations Conference on Sustainable Development (Rio+20), adopting the 10
Year Framework of Programmes on Sustainable Consumption and Production (SCP).
Part A
Further reading 3
Resolution A/CONF.216/5 A 10-year framework of programmes on sustainable

consumption and production patterns.
Asia-Pacific Roadmap for the Implementation of the 10YFP, The 10YFP Roadmap
for Asia and the Pacific provides a clear blueprint for the region in shifting towards more
resource efficient and sustainable production and consumption patterns for the coming
years. More than 100 Government officials, civil society, academia and businesses along
with experts from 25 countries in the region have contributed to the Roadmap.
UNEP 2014, Roadmap for the 10YFP implementation in Asia and the Pacific, United
Nations Environment Programme, Bangkok
Global Outlook on Sustainable Consumption and Production Policies - Taking Action

Together, identifies examples of effective policies and initiatives being implemented
worldwide. It reviews 56 case studies ranging from global multilateral agreements and
regional strategies to specific policies and initiatives and shows progress achieved in
promoting SCP, highlighting best practices and offering recommendations to scale up
and replicate these important efforts worldwide.
United Nations Environment Programme 2012, Global Outlook on Sustainable
Consumption and Production Policies - Taking Action Together, UNEP, Paris.
The SCP Clearinghouse is a unique one-stop hub dedicated to advancing Sustainable

Consumption and Production (SCP) worldwide. It offers the opportunity to share and find
information on SCP around the world (initiatives, news, events, publications, etc.), build
networks, identify partners, and strengthen capacities. It also serves as the information
platform of the 10-Year Framework of Programmes on Sustainable Consumption and
Production (10YFP).
http://www.scpclearinghouse.org/
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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Part A
Policy Development
4.1 The policy cycle

SCP
x
x
SCP?
Excellent
Good
Average
Poor
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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Policy Development
Key Points
The policy cycle has four main stages, problem framing, policy
framing, policy implementation and monitoring and evaluation.
Successful policy requires coordination, integration and institutional
change.
Four groups of policy tools exist.
These tools can be combined into a policy mix to create more
effective policy packages towards SCP.
Participation, transparency and accountability and key to successful
policy.
Checklists and frameworks for policy analysis are included.
This chapter begins with an introduction to the policy cycle, specifically geared towards SCP policy. It provides
a general overview of policy approaches and tools of particular relevance to SCP. It emphasises how policy
tools in many cases become more effective when introduced as well designed policy-packages that provide
support for more sustainable practices while at the same time discouraging less sustainable products, services
and behaviours.
4.1 The policy cycle

The four stages of the policy cycle
Good knowledge of the characteristics of the policy cycle will be very useful for policymakers and practitioners
in designing and implementing successful SCP policies. This chapter provides an overview of the policy cycle
(Dovers 2005) in an idealised way. In practice, the sequencing may look quite different, but all elements are
of equal importance if SCP policy objectives are to be achieved. The 4 main stages of the policy cycle are
distinguished below.
1.
2.
3.
4.
Problem framing
Policy framing
Policy implementation
Monitoring and evaluation of policies
Figure 4:1 The policy cycle
Problem
Framing
Monitoring &
Evaluation
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62
Policy
Framing
Policy
implementation
Table 4:1 The four stages of the SCP policy cycle

Stage in the policy process
Steps to be taken in each stage
Problem framing:
The policy community and general public debate the
issues related to SCP, gather information and agree
on the nature of a policy problem.
Discussion and identification of relevant social

goals.
Identification and monitoring of topicality (public
concern).
Identification of environmental degradation and
social inequality.
Understanding of underlying causes of
environmental degradation and social inequality.
Assessment of risk, uncertainty and ignorance.
Assessment of existing policy and institutional
settings.
Definition, framing and scaling of policy problems.
Policy framing:
Guiding policy principles are identified, a policy
position is developed and policy goals are defined.
Development of guiding policy principles.

Construction of general policy statement.
Definition of measurable policy goals.
Policy implementation:
Policy instruments are selected, resources allocated,
communication
and
enforcement
activities
undertaken and monitoring mechanisms established.
Selection of policy instruments and options.

Planning of implementation.
Planning of communication, education and
information strategies.
Progression of statutory, institutional and
resourcing requirements.
Establishment of enforcement and compliance
mechanisms.
Establishment of policy monitoring mechanisms.
Policy monitoring and evaluation: Ongoing

monitoring and evaluation of a policy are undertaken
to enable learning and enhance performance.
Ongoing policy monitoring and routine data

capture.
Mandated evaluation and review process.
Extension, adaptation or cessation of policy and/
or goals.
Part A
Table 4:1 identifies a number of key steps for each stage of the policy cycle that should be considered to achieve
good outcomes in policy making.
The four main stages are described in greater detail in the following section, to provide guidance for policymakers
and practitioners for planning SCP policies and ensuring successful implementation.

Policy and institutional challenges
SCP is still a relatively new policy domain and hence there is limited knowledge about the institutional requirements
for enabling such policies. While policymakers have gained considerable experience about eco-efficiency and
cleaner production policies, particularly policies in areas where end-of-the-pipe technologies were available, this
is not the case for broader transformational policies and for policies that wish to deal with over-consumption
or under-consumption. SCP policies need to emphasise time frames beyond the electoral cycle and require
balancing of short-term versus long-term goals, sometimes even generational timeframes. Many SCP problems
are of a global nature due to the increasingly global nature of production and consumption and product life cycles,
however the main institutions are generally set up for dealing with national or sub-national issues. SCP policies
force the integration of economic, environmental and social factors and therefore require the close collaboration
of different agencies. The experience in cross-agency collaboration, especially horizontal collaboration, is often
quite limited.
SCP policies profit from a large amount of information and from collaboration between science and policy. In the
case of incomplete scientific knowledge they have to rely on precaution to avoid undesired consequences, which
is not always easy to argue due to a lack of tradition in precautionary policy approaches. SCP policies require
significant effort to encourage the participation of interested or affected members of the larger community, which
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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needs to be enabled through well-designed engagement processes.

Finally, SCP addresses policy problems that require innovative policy approaches and sets of policy instruments
that work together to achieve the goal of SCP. All this requires tremendous effort in institutional development,
capacity building and human resource development. This needs to be recognised from the outset and success
will depend on proper resourcing and technical training.
Problem
Framing
Monitoring &
Evaluation
Policy
Framing
Policy
Implementation
The problem framing phase
The first phase in the policy cycle seeks agreement on the nature of the SCP policy problem. SCP policies
are characterised by the complexity of the issues involved and the plurality of values held by different groups
in society. In the case of SCP, it is difficult to agree on what needs to be done and by whom. In other words,
policymakers need to expect a high level of contestation. In many countries the development objectives and
the need to increase material standards of living and alleviate poverty are so omnipresent, that the need for
sustainability, enabled by sustainable consumption and production is not widely shared and often limited to
urban and policy elites. The need for SCP, however, is not well linked to the everyday life experience of people
and it should not wrongly be assumed that there would be broad societal agreement about the necessity of
SCP. This is something which needs to be developed.
If SCP policy interventions are to be effective, in the sense of not attracting widespread criticism and noncompliance, then policymakers and government agencies need to have a good understanding of community
opinion. It is essential to understand what society thinks about SCP problems and what kind of information
the general public would need to appreciate the importance of SCP for the development of their nation. The
understanding needs to be extended to:

Why people perceive an issue as important?

On the basis of what knowledge and information do they make those judgments?
How they would frame that issue as a policy problem?
What policy responses they think would be appropriate?
A good understanding of this across the whole population and for major population segments will be very
valuable before engaging in a national debate or starting to frame policy responses.
A national debate about SCP would profit considerably from credible information provided by science and
other sources of knowledge regarding the underlying causes of sustainability problems. It is also important
to discuss the most promising solutions to mediate those problems. It is characteristic of SCP problems that
policymakers will have to deal with ignorance, uncertainty and risk. It is important however, for policymakers
to make decisions despite the undeniable fact that we cannot know everything beforehand. The precautionary
principle gives a good lead into this. The precautionary principle argues that where there are threats of serious
and irreversible environmental damage, a lack of scientific certainty should not be used as a reason for
postponing measures to prevent potential environmental degradation.
Very importantly, SCP policymakers need to assess the policy environment based on an understanding that
SCP policies cannot work in isolation. Individual or group behaviours that cause environmental degradation or
present opportunities for improvement of the environment are shaped by multiple factors, including other policy
settings. There may exist social and economic policies that determine patterns of consumption and production,
that have unintended consequences for environment and sustainability. These will need to be adjusted to
support SCP. The design of policy interventions has to identify other policy settings and the incentives and
disincentives they create. This includes identifying existing policies that may be amenable for change via policy
reform, in order to help progress SCP goals.
All the steps outlined here help to shape the definition of a policy problem. Policy problems are for solving while
issues are for debating. This step in the policy cycle, of problem definition, often involves breaking problems
down into sub-sets that are more suitable for policy attention.
If the important steps in framing a problem and agreeing upon the nature of the problem are not attended to,
the subsequent steps in the policy cycle, in particular policy implementation will become an increasingly difficult
task to achieve.
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64
Monitoring &
Evaluation
Policy
Framing
Policy
Implementation
The policy framing phase
Like all other policy decisions, a range of imperatives bear upon different policy actors influencing SCP policy
decisions. For SCP policies, the considerations that determine the nature of the policy direction taken, need to be
clearly stated and may take the form of policy principles. Well-articulated policy principles will have three benefits.
Part A
Problem
Framing
1. Ensure that actors within the policy network understand the drivers of the goal, by specifying the logic
and meaning of the social goal that is guiding the economy and consumers towards higher resource
efficiency and lower emissions.
2. Enable policymakers to widely communicate the meaning and importance of the SCP objectives to
all members of the policy community. This will also help justify the policy decision and will profoundly
enhance the transparency and accountability of the SCP policy proposals to the broader public.Enhance
awareness of the relatively recent concepts of SCP, particularly across sectors which may have limited
background knowledge or limited experience previously collaborating.
The policy and institutional challenges that need to be addressed by the guiding principles include: the longterm perspective of SCP policies, their global dimensions, the need for policy integration across different policy
domains, a focus on scientific and other information, the application of the precautionary principle, the need for
participation and the innovative character of policy approaches that will be underpinned by substantive material
principles.
Policy principles provide guidance but they are not rules. Governments will require some flexibility to decide
priorities in a given context and their priorities may favour or override some principles. Some of the principles
may be conflicting and need to be balanced against each other and with policy objectives from other policy
domains. In many policy-making situations, especially in developing countries, other social goals such as nearterm economic growth may contradict SCP objectives, leading to trade-offs between development objectives and
SCP objectives. Ideally, there should be integration between conflicting policy goals minimising the trade-offs as
far as possible. Chapter 2.1 highlights how poverty reduction and SCP policies can work together.

The SCP policy statement
The most visible step in the policy process is the policy statement, which is usually publicly available. The policy
statement makes policy decisions and directions, including the policy principles, a publicly accessible record. It is
the nature of democratic politics that governments will issue policy positions or statements. The policy statement
will:

Identify the mandate and authority

Identify the problem
Explain the problem context
Detail implementation
Describe ongoing activities.
Measurable policy goals
An important element of the policy framing stage is the identification of measurable policy goals in relation to the
identified SCP problems. Often at this stage these may be vague, but it is desirable that core parts of the goal set
are measurable, so that later monitoring, evaluation and learning is possible.
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Problem
Framing
Monitoring &
Evaluation
Policy
Framing
Policy
Implementation
The policy implementation phase
The selection of policy instruments is the most critical step in the policy cycle and of greatest importance for
achieving policy goals. This is also the step where causes of policy failure are often located. SCP policies
are interventions into interdependent human-natural systems. This is a complex task and demands complex
interventions, which may speak for a mix of policy tools. The fundamental task of SCP policies is to change
individual or collective behaviours through policy instruments which are employed to guide or steer that change.
Commonly policy instruments can be distinguished as regulatory instruments and standards, economic
instruments, information-based instruments and voluntary agreements. These will be further explored in
Chapter 4.2, Policy Tools and Instruments for SCP. Obviously, this can include a large variety of interventions
available to SCP policy.
Table 4:2 Selection criteria for policy instruments

Criteria
This includes
Effectiveness criteria: determining the likelihood of the Information requirements

SCP policy instrument achieving goals in the absence of Dependability
constraints.
Corrective versus antidotal focus
Systemic potential
Flexibility in space and time
Efficiency
Complexity and cross-sectoral influence
Implementation criteria: determining the likelihood of Equity implications
the SCP policy instrument being successfully advocated Cost
and implemented.
Social and political feasibility
Institutional feasibility
Monitoring requirements
Enforcement/avoidability
Communicability

Implementation plan
The plan of how to implement policies for SCP may be sufficiently incorporated in the policy statement and
the associated discussion and documentation. However, the implementation plan needs careful attention as
it is a dynamic process which may need continuous adjustment. Usually, the implementation plan will change
and become more detailed once the role out of a policy has begun. Implementation planning, based on the
instruments chosen, typically includes the following considerations:
Is additional information required for key policy officials engaged in policy implementation?
Are there others who will be involved or affected by the policy that will need additional information?
How will this information will be generated and communicated?
Are all the statutory and administrative requirements and the resources in place that will be needed
during the implementation phase?
Are all issues of enforcement and compliance including resourcing and responsibilities in place?
Has a monitoring process been put in place, including defining routine data capture and responsibilities?
All these elements will be of particular importance in the SCP policy domain, due to the crosscutting nature of
the SCP goals.

Communication and information plan
The specific information and communication needs will vary across SCP policy instruments and jurisdictions.
However, key forms of information will typically include a detailed description of the main features of the
instrument, variations across the context where the instrument will be applied and the organisational capacities
and resource requirements for implementation.
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66
Instrument
Information needs
Main audiences
Regulatory standard for industrial

pollution
Technical details of the

standard
Compliance regime (licensing
process, inspection regime)
Sanctions (fines, license
suspensions)
Firms, operators, relevant

agency staff
All of the above and other
enforcement agents
All of the above and lawyers
and courts
Carbon tax for large polluters with

revenues invested to fund renewable,
energy efficiency and to compensate
lower-income households
Intent and structure of the

policy
Tax rates, details of
the payment schedule,
compensation packages
Industry, consumers,
relevant departments
Firms, tax officials,
accounting professionals
Part A
Table 4:3 Examples of information needs and main audiences for SCP policy instruments
Multiple tasks must be integrated in one communication strategy to engage with different audiences. Since many
instruments will need to be implemented by actors distant from the policy process a two-way communication
approach will be needed. This will encourage implementers to feed their experience back to the policymakers, to
allow for adjustments. This will ensure that national policies are well understood and implemented at the provincial
level and that the local experience is fed back to the relevant government departments.

Statutory, institutional and resource requirements
One major issue for policy implementation is often ensuring that the policy agency and other actors involved have
the capacity to properly implement the policy instrument that has been selected. Key capacities include the legal
competence, institutional and organisational capacity, financial resources and human resources. In the case of
SCP polices, considerable capacity building may be required, which needs to be planned for in the early stages
of the policy planning process.

Legal competence and defensibility
SCP policies, like any other public policies, must be legally defensible, i.e. not liable to challenge over their validity
in the courts. To achieve this, the legal basis of SCP policies may need to be insured in statute law, common law
and as is the case in many countries, also in customary law. Particularly with novel policy instruments and new
organisational strategies, the adequacy of the statutory setting requires close attention.

Institutional and organisational capacity
SCP policy instruments are often new and unfamiliar or they may involve the application of traditional policy
instruments in untried sectors of the society or economy. Special care needs to be taken to ensure that there is
capacity to deliver. This concerns the government agency or organisation with primary responsibility for policy
implementation and agencies and organisations or non-government groups who have delegated or subsidiary
roles in policy implementation. In the case of very complex new policies, such as for instance, an ecological budget
and tax reform, the tax department, the environment department and treasury would need to work together to
implement the new policy instrument. Very often, those departments would not have a history of successful
cooperation and collaborating would involve a steep learning curve for all involved.

Financial resources
The most commonly recognised cause of failure is inadequate funding. If the level of optimal funding cannot
be achieved, it is important to idenfity the limits that the funding shortfall creates, relative to the problem, to
avoid unrealistic expectations in the policy community. A realistic understanding of such financial limits may invite
consideration of supplementary or additional policy initiatives. Sometimes, a poor analysis of costs may be the
problem behind insufficient funding, highlighting the need for careful financial planning to reduce the chance of
unforeseen deficiencies.
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Human resources
SCP is a relatively new domain of public policy. Therefore it is very likely that there will be a need for new
or extended knowledge and skills on the part of agency staff responsible for planning, designing, and
implementation of the policy. This may be relevant to the quantity of human resources, that is the number of
staff available and the quality of human resources including knowledge, skills, and preparedness. There are
three broad areas of skills and capacities that need to be addressed:
1. Background knowledge regarding the logic of the policy approach chosen, especially if the policy
instrument is unfamiliar or substantially different from previous routine and experience.
2. Technical knowledge and skills concerning the policy instrument in question.
3. Contextual knowledge of the sectors, regions, community subgroups or industries where the
instrument will be implemented.
Capacity building for human resources has traditionally been attended to within agencies. However, for SCP
policies, capacity building needs to include the aspect of inter-agency and whole of government implementation
as well as engagement with the wider policy community.

Enforcement and compliance
When the implementation of the policy instrument is designed, issues of compliance and enforcement measures
need to be included. This will result in a better understanding of resourcing and communication requirements
and of ongoing monitoring needs. There are three aspects of compliance:
1. Compliance in undertaking assigned responsibilities for implementation on the part of responsible
authorities and others involved in the implementation such as government staff.
2. Compliance by those directly addressed by the instrument such as firms, individuals or households.
3. Compliance with enabling or subsidiary aspects within and outside of government.
Problem
Framing
Monitoring &
Evaluation
Policy
Framing
Policy
implementation
Policy monitoring and evaluation phase
Provisions for policy monitoring should be integrated in the policy process as early as possible. They need
to recognise the link between SCP monitoring through SCP indicators and monitoring of the effectiveness of
the policy instruments chosen. Policy monitoring should be closely related to policy goals and should include
routine data capture. It is important to set in place a timetable for review and evaluation of any SCP policy
instrument. The policy monitoring and evaluation phase will be discussed in greater detail in Chapter 6.

Policy tools and instruments
This section introduces some of the groups of policy tools that governments have at their disposal to influence
consumption and production patterns. It covers regulatory tools, economic tools, information-based/educational
tools and voluntary agreements. This is not an exhaustive list of policy tools; it is rather a categorisation of some
of the more widely applied approaches. This chapter is based on Bengtsson et al. (2010).
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Part A
Figure 4.2: Policy tools and instruments
command and control
negotiated
target
setting
market
choice
Regulatory tools: command and control

Definition and Background
Regulatory tools have been used by governments for a long time and are the basis for environmental policy making
all over the world. Regulations can mandate or prohibit specific behaviours or the use of a certain technology,
define a level of sustainability performance to be achieved. They need to be used together with mechanisms
for monitoring and sanctioning in order to ensure compliance. Regulatory tools are sometimes referred to as
command and control instruments, reflecting the way they are implemented. Regulations that are of relevance
for SCP can be divided into the following three general categories: environmental quality standards, technical/
emission standards and restrictions and bans.
1. Environmental quality standards specify a minimum desired level of environmental quality, or the
maximum level of pollution of a certain medium. An example is quality standards for urban air.
2. Technical/emissions standards specify either mandatory technical equipment to be used in certain
applications, or maximum levels of emissions or resource consumption for specific products or systems.
For example, many countries require automobiles to be equipped with catalytic converters (a technical
standard) and, in addition, they regulate maximum emission values for certain pollutants for vehicles (an
emission standard).
3. Restrictions and bans refer to the direct limitation of an undesirable behaviour or technology, or
restrictions on the sale or use of certain products/substances with negative environmental and health
impacts. An example is the prohibition of lead additives in gasoline or a ban on dumping end-of-life
vehicles in nature.
In order to be effective, regulatory tools need to be complemented by some form of monitoring system. It is
also necessary to specify who is responsible for taking action in case the regulations are violated. Some form of
appropriate sanctions or penalties, such as fines or prison sentences, are also needed in order to deter violations.
These enforcement measures can add considerable costs to the policy implementation.
Regulatory tools can be implemented as stand-alone tools, but many policy problems require a set of regulations
to be put in place. For example, a ban on waste dumping would normally be associated with a requirement
on some specific actor, typically local authorities, to collect waste and ensure proper treatment. Technical and
performance standards may also be needed in order to make sure that the waste treatment has limited negative
impacts on humans and environment.
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Box 4:1 Examples of regulatory tools for SCP

Environmental control and enforcement (e.g. substance bans or phase outs, or mandatory
environmental reporting for public and private organisations).
Norms and standards such as regulatory requirements for energy performance of buildings.
Source: (SWITCH-Asia 2012)

Strengths and limitations
There are several benefits of regulatory tools, which explain their dominant position in environmental policy
making. For governments, the setting of targets/standards is inexpensive and the goals for policy achievement
are clear. These tools have proven to be effective for addressing directly visible damages and point sources of
pollution.
On the other hand, industry tends to be reluctant to submit to command and control regulation. Their
argument is often that uniform regulation ignores the unique situation of each company, including differences in
compliance costs and therefore leads to excessive overall costs. Such resistance has in many cases hindered
the effective implementation of regulations. Another concern over these tools is that they are static, in the
sense that they only require compliance with certain targets and therefore provide no incentives for further
improvements beyond those targets. In addition, in cases where regulations are used for a few large entities,
such as major industrial production plants, the compliance can easily be monitored, but in cases where the
number of regulated entities is very large the enforcement costs can be excessive. This can be a challenge for
regulations that target individual households or SMEs.
However, the challenges of implementing regulatory tools effectively do not imply that they should be avoided
or replaced with other tools. What it means is that to effectively regulate impacts of products with globalised
life-cycles and to increase their resource efficiency, it is important to have more comprehensive, dynamic and
flexible policy approaches. This can be achieved by introducing and using regulations in a more flexible manner
and/or by combining them with other types of tools. Some examples of how this can be done are given in a
later section - Diversifying the policy repertoire.
Box 4:2 Regulatory tools and the life cycle approach
Regulatory tools can be used at various points in products life-cycles. At the stage of resource extraction,
a quota system to control the volume of resource extraction, and requirements to restore mining sites into
green areas are two examples. At the production and consumption stages, technical standards can be
used for example to promote energy efficiency, to mandate the procurement of products made of recycled
materials, or to ban the use of certain materials or designs that are difficult to treat at end-of-life. Examples
at the waste management and recycling stage can be prohibition of waste dumping and inappropriate waste
treatment, rules mandating waste separation by households, or emission standards for waste disposal sites
and recycling facilities. At all stages, from materials cradle to their grave, there is room for regulations to
promote greener practices and to reduce unsustainable patterns of production and consumption.
Economic tools: creating market-based incentives

Economic tools work by encouraging or discouraging certain behaviours and practices through economic
incentives. Prices for products and services, set by the market, do not properly reflect environmental and social
impacts. Therefore, these prices send the wrong signals to the market actors and encourage overconsumption
of natural resources, low levels of efficiency, and unnecessary pollution. Governments are in a unique position
to change these incentives so that the short-term self-interests of producers and consumers are better aligned
with the long-term social objective of sustainable development.
I.
One of the basic ideas behind economic tools is that by adjusting prices through policy interventions,
so that environmental and social costs are to some extent reflected in the prices of materials and
products, the decisions made by producers and consumers can be brought more in line with overall
societal objectives. Such internalisation of societal costs, which is based on the widely accepted
polluter-pays-principle, can be achieved through taxes or use charges, with supporting policy to
ensure the poors access to resources for their basic needs.
II. Economic tools can also be used for facilitating the adoption of cleaner and more resource efficient
technologies and practices through subsidies, soft loans and tax reductions.
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Part A
III. Tradable permit schemes allow market players to buy and sell permits to extract or use a specified
amount of a resource or to emit a certain amount of a pollutant. These can be used in order to achieve a
fixed environmental target, such as a maximum amount of air emissions, in a cost efficient way. Tradable
permits are mainly applicable to larger companies.
IV. Deposit-refund schemes provide an economic incentive for the user of a product to return it to
designated collection points at the end-of-life. Consumers pay an extra amount of money (a deposit) at
the point of purchase but gets the money back (a refund) when he or she returns the product. Depositrefund schemes are used by many governments for example to increase collection rates of empty
beverage containers for reuse or recycling, and used car batteries for safe treatment.
The number of applications of economic tools to the policy field of SCP has grown steadily since the 1970s.
It is commonly argued that economic tools are currently underutilised and that a more wide-spread adoption
would contribute to enhanced efficiency and effectiveness of environmental policy making. Economic tools and
instruments are discussed further in Chapter 12, Fiscal Reform.
Box 4:3 Economic tools versus regulation - managing depleting aquifers
Economic tools differ from regulations in a number of significant ways. Here the example of water consumption
is used to illustrate some of the key differences. A number of water-consuming industries are sourcing their
water from the same groundwater aquifer and this resource is rapidly becoming overexploited.
One way of addressing the situation would be to regulate the amount of water that each industry has
the right to withdraw (a regulatory tool). Another way would be to introduce a withdrawal charge (an
economic tool). If regulation is used the government would have to assess the water need of each industry,
including its potential for recycling and efficiency improvements. Once the system has been established the
government would need to monitor withdrawal by all industries included and take action against violations.
The government would also need to review and revise the allocation of withdrawal rights on a regular basis.
In sum, the regulatory system would require a lot of administration and thereby incur significant costs for the
government.
In contrast, if the government decided to use water withdrawal charges to address the water scarcity
situation it wouldnt need any information on the water need of each facility or the potential for efficiency
improvements. However, they would need to establish how high the withdrawal charge should be in order to
reduce the combined withdrawal to a sustainable level. If the charge is set too low it will be ineffective while
if it is set too high it will place an unnecessarily high burden on the targeted industries. In order to set the
charge at an appropriate level the government would need to have access to relevant data and have capacity
to conduct economic modelling. Once the system has been established the withdrawal of each industry
would need to be measured and the government would need to collect charges. Also a system based on
economic tools would thus require significant administrative efforts of the government.
An effective and fair system that ensures sustainability without unreasonable economic consequences for the
industries affected requires additional costs for governments. Good governance does not come for free no
matter what kind of policy tools are used.
Box 4:4 Examples of economic tools for SCP
Environmental taxes
Fees and user charges
Certificate or permit trading schemes
Environmental financing
Subsidies

The two most commonly cited advantages of economic tools over regulation are their ability to provide incentives
for innovation and improvement beyond a certain level of performance and their cost-effectiveness. Economic
tools can have a more dynamic effect since they provide continuous incentives, which regulations and standards
typically dont. They can be more cost-effective than undifferentiated regulations that do not reflect that some
industries may be able to improve at lower cost than others.
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However, as discussed in relation to the example above, economic instruments also require adequate
institutions for design, implementation and enforcement. Charges and taxes need to be collected, and effective
monitoring is needed to avoid free-riding. In general, the effects of economic tools on environmental quality
and resource consumption are not as predictable as under a regulatory approach. Changing conditions and
increasing incomes or profits may affect ability-to-pay and consumption levels. Regular assessments of the
effects of these tools are therefore needed and frequent revisions may also be required.
Information-based tools: enabling informed choices

Information-based policy tools have become more popular in recent years, partly because of the IT revolution
which has decreased the costs of information dissemination. This is a very diverse group of tools, but two basic
clusters can be distinguished.
I. The government provides information to some actor group or society at large. This can range
from very general information on overall policy objectives, such as to increase energy efficiency in
SMEs over the next five years, to highly specific and targeted information, such as technical training
for SMEs in how to improve energy efficiency.
II. The government requires some actor to provide certain information (information disclosure),
such as data on emissions of toxic substances from production facilities or on energy consumption
of products during the use phase.
On a general level, information tools are intended to provide knowledge on the environmental performance
of certain products, services or systems in a standardised manner so that stakeholders, such as consumers
and investors, can make better informed choices avoiding less sustainable options to the favour of more
sustainable ones.
Box 4:5 Information based tools for SCP
Ecolabelling
Sustainability reporting
Consumer advice centres and portals

One of the main advantages of information-based tools is the low implementation costs compared to the
complex administration often needed in order for regulations and economic tools to work properly. However,
the effectiveness of an information-based tool depends of course completely upon to what extent it actually
influences behaviours and practices in a sustainable direction. Therefore, these tools are more likely to be
effective in markets where consumers, investors, government officials and other key actors already have a high
level of awareness on environmental issues and where there is a widespread demand for a clean environment.
Without the existence of adequate background knowledge and basic sustainability values among the key
actors, information on environmental performance is not likely to generate significant changes in behaviour.
Another factor often seriously limiting the effectiveness of information as a policy tool is that economic factors
usually pull consumers and other actors in an opposite direction. In situations where more sustainable products
and services are much more expensive than comparable options with higher environmental impact, information
disclosure, such as eco-labels, cannot be relied upon to bring about changes towards sustainability.
In general, information-based tools cannot be expected to function as substitutes for other policy tools, but
should rather be regarded as supplements, which can enable stakeholders to improve resource efficiency
and pollution abatement. However, there are cases where information-based tools by themselves have been
effective; in particular, requirements for industry to disclose information on environmental performance to the
public have often led to significant improvements. Another area where information-based tools have been
used with some success is for product labelling on energy efficiency. In this case, consumers usually have an
economic incentive to buy more efficient products so there is no trade-off between sustainability concerns and
economic considerations.
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72
Voluntary agreements aim to promote environmental improvements through voluntary action. This usually implies
that firms make commitments that go beyond legal requirements. Two well-known examples are the Responsible
Care Program for chemical management developed by major chemical companies through their global industry
association and the Zero Landfill programme of major manufacturers in Japan.
Part A
Voluntary agreements: negotiated target-setting
OECD (2003) distinguishes four types of voluntary agreements:

I. Unilateral commitments made by polluters or resource users.
II. Private agreements between polluters or resource users and those who are negatively affected.
III. Negotiated agreements between industry and a public authority. This negotiated kind of agreement has
a stronger legislative character than purely voluntary approaches. It is an agreement which can include
legally binding obligations to follow an action plan established through negotiation. The agreement can
even involve sanctions for non-compliance. However, the negotiation element makes these policies
different from typical regulatory approaches.
IV. Voluntary programmes, in which participating firms agree to standards (related to their performance,
their technology or their management) which have been developed by public bodies.
Also, management standards such as the ISO 14000 series can be understood as voluntary agreements of the
first type. While such standards are not strictly policy tools, they can be used, for example by requiring that all
major suppliers to governmental agencies be certified.
Governments can use voluntary agreements with the private sector to support corporate social responsibility (CSR)
including supporting transparency in sustainability reporting. Sustainability reporting is particularly important, as
it is increasingly recognised that financial reporting alone is not sufficient, and that reporting on sustainability can
encourage more sustainable behaviour. Many larger organisations are already engaging is such reporting, often
using methods based off the Global Reporting Initiative (GRI). However much work remains to be done to engage
more organisations, including SMEs. Voluntary agreements can offer opportunities for supporting such reporting.
Box 4:6 Voluntary approaches for SCP

Sectoral voluntary agreements

Public Private Partnerships
Awards for sustainable products or services.
Voluntary agreements are obviously more flexible than command and control regulation and compliance can be
less burdensome than for market based instruments. They are therefore commonly favoured by the business
sector. However, the literature on SCP policy tools does not provide much evidence of voluntary agreements
being particularly effective. In addition, there are concerns that such agreements can give undue benefits to large
market-leading companies by promoting their business models and technologies. Voluntary agreements are likely
to be more effective in situations where there is a high possibility of command and control regulation or economic
tools being used. It is typically easier to convince industry to make strong voluntary commitments if there is a
widespread perception in that industry that mandatory policy tools are otherwise likely to be introduced.
OECD argues that it is generally more effective to use regulatory tools with some flexibility, and based on
discussions with the regulated industry or actor group, or to use market-based tools, than to encourage voluntary
commitments. Negotiated agreements with binding targets and a phase-in period can be a compromise and a
way to increase acceptance for regulation. As discussed further below, voluntary measures can play an important
role for motivating additional efforts of companies that already have a high environmental performance, while
legally binding measures may be the most effective for ensuring improvements of the majority of companies in a
specific sector.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 73
Diversifying the policy tools repertoire

The majority of sustainability policies are based on regulatory tools. Significant improvements have been
achieved through such policies, especially for local environmental impacts. However, regulatory approaches
have also been successfully employed at the international level, for example in the phasing out of ozonedepleting substances and for reducing the use of hazardous substances in electronics. These tools are likely
to remain the corner stone of environmental and resource policies.
However, regulations have a number of limitations and there are good reasons for governments to also consider
other tools. This section discusses how regulatory tools can be combined with other tools for enhanced
effectiveness and how they can be implemented in ways that reduce compliance costs and resistance amongst
industry and consumers.

Combining tools for enhanced effectiveness
Policy tools can be especially powerful when employed in combination. Such policy mixes can for example
combine an economic incentive, such as an environmental tax or a use charge, with an information-based
policy tool, which makes it easier for households or companies to change their behaviour. An example related
to households energy consumption could be a combination of an electricity tax (economic tool providing
incentive) with mandatory energy consumption labelling of electrical appliances (an information-based tool
helping consumers to select better products and cut their energy bills).
SCP policy tools are used for shifting companies or households behaviour and consumption and production
patterns into a more sustainable direction. This typically calls for a combined policy approach including both
tools to phase out undesirable products and behaviours, and tools to expand the market for more sustainable
products or to provide incentives for more sustainable behaviour. Figure 4:3 illustrates this need for multiple
policies to edit out bad options (laggards), to increase the market share of better ones (frontrunners), and to
stimulate innovation towards further improved products, systems and practices.
Figure 4:3 Three types of policy interventions aimed at improving the resource efficiency of
products and systems
Products or systems currently on
the market or in use
+
1. Policies to phase
out inefficient
products and
systems
Market share
er
a
h
st
ek
ra
M
Laggards
2. Policies to promote
efficient products and
systems
Frontrunners
3. Policies to stimulate
innovation for
improved performance
Resource efficiency
+
Adapted from ASCEE 2008
Source: (Adapted from ASCEE 2008)
page
74
Japans Top Runner programme was introduced in 1998 as part of the countrys Energy Conservation Law
to improve the energy efficiency of products. The program is a regulatory approach administered by the
Japanese Ministry of Economy, Trade and Industry (METI) and does not provide any economic incentives.
The program focuses on the supply side of product markets. Stringent energy efficiency standards have
been established for 21 product categories including passenger vehicles, air conditioners, refrigerators and
television sets. Instead of setting a minimum energy efficiency standard, the current best energy efficiency
of a product in an exact category is taken as the standard (the Top Runner). This standard represents the
target for energy efficiency that has to be reached by all products of a product category within a certain time
frame.
Part A
Box 4.7 Japans Top Runner Programme
Since the introduction of the Top Runner programme, for each product category significant energy efficiency
improvements have been achieved. For example, the energy efficiency of air conditioners improved by 68%
between 1997 and 2004, electric refrigerators by 55% (1998-2004), passenger vehicles by23% (1995-2005)
and computers by 99% (1997-2005). Overall, the Top Runner program is expected to achieve 0.35 exa
Joules (eJ) of energy savings between 1998 and 2010.
Source: (ECCJ 2008)
These three types of policy intervention will generally require different policy tools. It is not realistic to expect
that one single policy tool can effectively edit out an undesirable product from the market and at the same
time stimulate innovation towards more sustainable options. In addition, certain policy tools may be effective in
stimulating technical improvement of existing products, while other tools may be needed to encourage more
radical innovations at the systems level. For example, technical standards can be important tools for improving
the performance of an established kind of product or production process, but they typically dont provide any
incentives for systems innovation. In order to create drivers for such more fundamental innovations, including
changes in consumer behaviour, other policy approaches and tools are required. For example, in addition to
improving the fuel efficiency of automobiles there is a need to support a range of other developments, such as to
stimulate new energy sources for private vehicles, to facilitate the dissemination of social innovations such as car
sharing or to develop public transportation systems into viable alternatives to cars.

Ensuring policy integration and coherence
When a government reviews and strengthens its SCP policy portfolio it needs to consider how policies in nonenvironmental domains shape patterns of production and consumption. While there is a need for dedicated SCP
policies, it is also important to assess the implications of policies in other areas for SCP objectives. There is often
a tension between sector policies, for example industrial development, agriculture or construction, that generally
aim to boost consumption and SCP policies that seek to moderate consumption levels and shift consumption
patterns. In order to make significant progress towards SCP, governments need to understand how its sector
policies and fiscal system influence patterns of production and consumption, and to make revisions where there
are conflicts with sustainability objectives.
To effectively move society towards SCP, governments need to send coherent messages. Clear visions need to
be established and communicated; consistent and well-coordinated policies, including sector policies as well as
dedicated SCP policies, should create incentives and legal obligations towards that vision. This requires leadership
from the highest political level and coordinated action by the governmental departments concerned.

Flexible implementation but firm long-term targets
Some of the actors affected by a new policy may be able to quickly adjust, while others may need a longer
time. For example, a manufacturer that is just about to renew machinery is more flexible than one where a large
investment has just been made. In order to be effective, and to reduce resistance to new policies, it is therefore
desirable to leave room for some flexibility. This can be achieved in different ways.
The flexibility associated with economic tools is often mentioned as an argument for a more widespread use of
these tools. Companies that can quickly and easily adjust their production processes and products need to pay
less. Those who have difficulties in adjusting, or where the costs of making adjustments are high, will have to pay
more. Each individual company is free to calculate what changes would be most beneficial for them and to make
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 75
their decision accordingly. A uniform regulation, requiring the same performance level of all companies in an
industry, could entail higher overall compliance costs and would cause stronger resistance.
However, it is possible to develop and implement also regulatory tools with a certain degree of flexibility.
Involving the groups targeted by a proposed policy (such as companies, consumer groups, or farmers) in
the drafting process can help build awareness, understanding and support. Consultation processes can also
inform the policy design process on the circumstances of targeted groups and on obstacles to compliance.
By being provided the opportunity to influence the policy design and the implementation schedule, companies
and others can be expected to feel a higher ownership of the process and thus be more likely to respond
positively. Finally, consultation processes provide early warning to the affected groups and make it possible
for them to start preparing for expected future policies. Consultation processes require extra time, but the
outcome can be better designed policies and more favourable conditions for successful implementation.
It can also be wise to announce planned policies well in advance so that the affected stakeholders have time
to adjust. Similarly, a step-wise introduction can facilitate compliance and reduce related costs. Experiences
from developed countries, for example in relation to automobile emission standards, show that clear long-term
timelines with fixed tightening of performance standards can be an important driver of technological change.
If future standards are set and announced several years in advance, industry has more time to innovate and
invest. However, in order to be effective, long-term timelines and targets need to be robust to political changes.
If there is some uncertainty whether an announced future policy will in fact be implemented or not, this can
seriously reduce efforts (such as investments in product development and production facilities) needed for
compliance.
Lewis Akenji
page
76
Sustainable Consumption and Production Policies: a policy toolbox for practical

use provides practical explanations of SCP policies and policy instruments. It further
recommends instruments that could be applied to increase the positive environmental
and social impacts of specific projects. Special attention is paid to small and medium size
enterprises (SMEs), which often form the majority of business operations in developing
countries.
Part A
Further reading 4
SWITCH Asia Network Facility, n.d., Sustainable Consumption and Production Policies: a
policy toolbox for practical use, United Nations Environment Programme, Paris.
Policy Instruments for Resource Efficiency: Towards Sustainable Consumption and

Production, is a good starting point to understanding different types of policy tools, their
advantages, disadvantages and where they can be applied towards SCP objectives.
GTZ 2006, Policy Instruments for Resource Efficiency: Towards Sustainable Consumption
and Production, GTZ, Germany.
Instrument Mixes for Environmental Policy is a comprehensive publication that

provides descriptions and analysis of how various policy instruments can be combined
to achieve higher impact. Chapters are organised to demonstrate combinations of policy
instruments for different sectors and different points in the production-consumption
system.
OECD 2007, Instrument Mixes for Environmental Policy, Organisation for Economic Cooperation and Development, Paris.
Integrated Assessment: Mainstreaming Sustainability into Policy Making is a guidance

manual that provides support in using Integrated Assessment as a tool for mainstreaming
sustainability into policymaking processes (policies,plans and programmes). In doing so,
it uses international experiences in the area of Strategic Environmental Assessment (SEA)
and IntegratedAssessment (IA).
UNEP 2009, Integrated Assessment: Mainstreaming Sustainability into Policy Making, A
Guidance Manual, UNEP.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 77
Part A
Policy Implementation
5.1 Obtaining political support and mainstreaming
the SCP agenda
5.2 Structures and processes for policy
implementation
SCP
x
x
SCP?
Excellent
Good
Average
Poor
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 79
Policy Implementation
x
x
Key Points
High level political support is necessary for successful SCP policy
implementation.
SCP policies are highly cross-cutting: their formulation,
implementation and monitoring require a high degree of inter-agency
collaboration within government.
Integrating SCP policies into plans is preferable to formulating them
as stand-alone policy areas.
Adequate communication and education to all stakeholders
increases the likelihood of successful implementation.
The government can play multiple roles in pursuing SCP but has its
limitations. SCP agendas need multi stakeholder engagement and
partnerships.
It is important to engage with the business community, civil society
groups and other non-governmental organisations such as consumer
groups and the media.
This chapter provides more detail on the policy implementation stage of the policy cycle. Complementing the
theoretical approach outlined in the previous chapter, this chapter focuses on the practical and strategic side
of implementation, considering the multiple dimensions of successful implementation.
5.1 Political support and mainstreaming SCP

Introduction
Efforts to promote SCP have a much higher chance of being successful if top-level political leaders understand
the importance of changing patterns of production and consumption into a more sustainable direction. SCP
is by its nature highly cross-cutting. Effective policies therefore often have to be developed in collaboration
between line ministries. It is important to have effective mechanisms in place to support such collaboration.
Establishing a coordinating body with sufficient authority and resources can be an essential step towards more
coherent and effective policies. Such a body could be the central planning commission or planning ministry of
a country.
At a formal level of policy formulation, countries need to review what policies, plans and strategies they
already have in place and to explore how SCP can be integrated into these existing mechanisms rather than
launching SCP as a new free-standing initiative. Some areas that may offer particular potential for integrating
the SCP perspective include: climate change mitigation, energy security, food security, health, water and
consumer safety/consumer rights. Many countries also develop overarching plans with a five year interval. It is
of key importance to integrate SCP into such strategic economic planning, not only in chapters dealing with
environmental protection as such but also in chapters related to major economic development.
Harnessing high level support for a complex reform agenda

The formulation and effective implementation of SCP policies and strategies affect the deeper structure of
economies and societies. This involves therefore a very complex agenda of reorienting economic systems,
consumer preferences and producer behaviours. The agenda embraces key economic sectors such as energy,
agriculture and transport. It can offer opportunities for decoupling economic growth and social development
from environmental degradation, thus strengthening the sustainability and resilience of a society. It can further
help to seize new development opportunities that can contribute to growth and poverty alleviation. A coherent
SCP policy agenda can support a triple dividend of greater wellbeing, increased competitiveness, and
environmental integrity (CSIRO and IGES 2012).
In the real world, this agenda is likely to encounter resistance: this can be expressed openly or covertly by
interest groups within the government apparatus, in the business community and beyond. In particular, lobbies,
trade associations and other more or less transparent policy influence mechanisms can be very effective in
working towards maintaining the existing systems though which wealth is generated and shared. Resistance
and impasse may also arise from the sheer momentum required to bring change for example in complex
production chains, which may have been structured according to unsustainable paradigms for a long time
page
80
Production methods may also be driven by regional or global factors outside the influence of national policy
making. Often manufacturing methods and parameters are set by multinational companies operating to home
standards but manufacturing in still developing countries.
Part A
(e.g., involving costly industrial processing plants, large-scale agricultural input supply chains).
The demand side of the agenda is no less complex. Developing societies are changing rapidly. Average per
capita consumption is rising fast, albeit across a wide range and increasing urbanisation reshapes consumption
for food, transport and housing. Booming middle classes are driving urban consumption, increasingly shaped by
globalising forces, and this to a large extent is compounded by the relative youth of the population in emerging
economies. Aspirations of those emerging from below the poverty line cannot be ignored; unless it is checked,
the natural inclination is to aspire to the lifestyles of higher income groups, regardless of country. Obtaining reform
momentum and effectiveness therefore requires actions at multiple levels and across multiple sectors. A reform
agenda of this nature is unlikely to proceed in a linear manner. It will rather be implemented as an iterative process,
where regulatory interventions, fiscal and other incentives, voluntary agreements and interventions to support
behavioural change in the public reinforce each other over time.
Pathways of change towards SCP goals may take multiple routes, from mainstream policy change, large scale
investments or incentive schemes, to innovation in niches of production and/or consumption which may be scaled
up after establishing initial success. Leadership support is therefore required at several levels and in a flexible way.
A lead agency or an effective coordinating mechanism among line agencies and stakeholders become crucial.
Above all, the reform process needs to maintain high visibility on the ultimate goals of the SCP strategies within the
government administration and political leadership, the public, consumers bodies, and producers (these points
will be elaborated in the following sections).
Box 5:1 Relevance of leadership and high level support in SCP implementation
A recent study in Asia shows the relevance of leadership and political support not just in the formulation of SCP
policies but moreover to support their effective implementation. Lessons from around the region point out that:
It is advantageous if there is a single responsible authority for coordinating SCP activities in a
country to avoid confusion, duplication of efforts, conflicting activities, and inertia.
The two main functions of the coordinating authority are to show leadership and capacity for
decision making, in order to reduce complexity, and to help build linkages among all actors that
need to be involved.
Leadership and high level support are required to build the necessary human capital and knowledge
about SCP issues and policies within central agencies as much as within state, local authorities and
city governments. Capacity at these levels is crucial for successful implementation.
High level support is also required to drive complex public policy reform and maintain incentives
to favour SCP among business actors and consumers. Policymakers usually find it more difficult to
shape consumption than regulating production; this is especially so in developing countries, where
over and under consumption exist. Coherent choices in infrastructure development and urban planning
can complement public awareness initiatives. SCP in public procurement can both shape a significant
proportion of consumption and set a public example.
For society at large it is crucial to have champions of SCP among community leaders and
decision makers who promote innovative technologies for SCP and sustainable lifestyles.
Source: (CSIRO & IGES 2012) modified.
A number of actions and strategies may facilitate obtaining and maintaining high level political support:
Align or better integrate SCP goals within mainstream economic or sector development
strategies to foster convergence and deleverage conflicting agendas (this will be reviewed in the
following section).
Identify explicit, easily communicable SCP long term goals to provide a sense of direction and focus
on long term gains.
Conduct an explicit stock-taking of multiple and potentially conflicting interests (e.g., via a robust
initial stakeholder analysis) within economic sectors and identify coherent development opportunities
and win-win reform options.
Produce and disseminate easily communicable costs and benefit analyses of SCP initiatives and of
risks associated with unsustainable production and consumption patterns.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 81
Identify a high level institutional home of the SCP strategy. This may take the form of a
government agency (not necessarily within environment line agencies, but perhaps within economic
or industrial development agencies) and/or a coordinating platform (e.g., a high level interagency
task-force) this is further explored in section 5.2.
Establish effective communication strategies able to produce public responses to policy change
and even to pioneering achievements in niche sectors: the latter can help building momentum to
scale up initial success.
Support an effective process of dialogue and policy review about SCP initiatives and achievements,
fed by adequate evidence of impacts and challenges, and leading to gradual adaptation of strategies
and interventions.
Maintain a clear focus on economic incentives and benefits, as well as on private investment and
public funding opportunities.
Figure 5:1 Tips to strengthen policymakers involvement throughout the policy cycle
Problem
Framing
involve the right players
gather relevant information
and define the problem
Monitoring &
Evaluation
provide solid and credible

analyses of the issue to be
addressed
include lessons learnt from
other countries or regions
manage information
carefully
Policy
Framing
assess policy choices and
identify adequate policy
options and incentives
balance content not to
overload the policy
dialogue - select priorities
Policy
Implementation
support capacity building

of policymakers
build trust and close
relationships with the relevant
policymakers
involve local actors
Source: (Adapted from Mller et al. 2011)
Promoting SCP towards the strategic centre of policy making

Given the complexity and multi-sector nature of the SCP agenda, it is important to ensure that SCP policies
are integrated and reflected in sector strategies and policies and moreover in cross-cutting development
strategies. This can help minimise the risk of making the SCP agenda a marginal one, easily overcome by
stronger development forces.
Beyond the general principles of sustainability, SCP goals can be pursued only according to objectives and
strategies that make sense in each society and economy. They need to take into account the development
stage of a given economy, its trajectory, history and drivers and the underlying social realities and aspirations.
This does not mean that only developed societies can afford SCP. It may actually mean exactly the opposite,
as we shall briefly explore.
In developed economies, SCP strategies usually pursue innovation and change in sectors where they have to
overcome resistance offered by well-established investments (physical ones, like infrastructure, or immaterial
ones, like knowledge and expectations). On the other hand, in developing countries and particularly in emerging
economies, opportunities may exist to leapfrog development, i.e., to pursue innovative and sustainable solutions
without the need for costly restructuring. However, such innovation inspired by SCP models needs to win over
the tendency of replicating investment strategies from developed countries. Similar opportunities can also
page
82
Part A
exist in the most vulnerable societies. In such societies, business models imported from developed countries are
often not feasible: there can be more room to experiment and later scale-up innovative models (once these may
prove to be capable of addressing unmet basic needs of the population) (Tukker, 2005). For the above reasons, in
developing economies there is a further critical justification to move the SCP agenda towards the central strategic
areas of policy making: it can open up opportunities to provide direction towards more sustainable and resilient
development trajectories.
Therefore, to seize these SCP opportunities and counteract the tendency of replicating strategies which have
already proven unsustainable in developed countries, it becomes imperative to provide long term vision and
coherence to the development agenda. This means embedding SCP policies in the mainstream sector and
developing cross-sector strategies and policies.
Figure 5:2 Key drivers and sources of resistance for SCP in different societies
Well established
systems of
infrastructure,
education, social
values, etc. resist
innovation
Developed (consumers)
societies
SCP
duc
h, re
and
n
ntai
ai
=M
lt
wea
grow
urce
eso
ng r
use
Innovation
within the
system
promotes SCP
National and
foreign
investments
replicate
unsustainable
pathways
Emerging societies
and
ent
m
p
elo
dev
frog ts
p
a
e
to l stmen
e
ities
tun saur inv
r
Long term
o
pp dino
O
=
visions, strategies
id
o
v
SCP
a
and governance
systems for SCP
provide sense of
forward direction
National and
foreign
investments
replicate
unsustainable
pathways (lower
risk)
Most vulnerable
societies
SCP
t
Mee
bs
le su
s an
eed
ry n
a
prim
ab
d en
th
row
nt g
e
u
eq
More freedom for

experimenting
with new
opportunities
SCP policies can be integrated in major national level frameworks and strategy documents, such as the National
Sustainable Development Strategy or National Environmental Action Plan. Furthermore, they can be reflected in
Poverty Reduction Strategy Papers or Millennium Development Goals Strategies. Their respective policy cycles
can offer opportunities to review strategies and approaches through an SCP lens and to reflect relevant SCP goals
and targets. This approach, rather than the approach of developing a stand-alone SCP framework, can provide
prospects to strengthen the sustainability and resilience of mainstream economic and sectorial development
strategies.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 83
Within these overarching frameworks, sectorial or issue based SCP plans can drive change and provide
vision to specific sectors: they usually consist of action plans with specific objectives, targets and monitoring
mechanisms.
Figure 5:3 Typical hierarchy of SCP policy levels

Overarching national economic and social development strategy
Urban
development
Transport
Food and
agriculture
Environmental
quality
Climate change
Manufacturing
and
adaptation
consumer goods and mitigation
Energy
Mining
However, top down and over ambitious SCP strategies are unlikely to succeed. Issue and priority selection
needs to be guided by pragmatic considerations and coherence with the specific conditions of a given country.
Typically, most countries have initially focussed on environmental quality and pollution control measures. With
experience and learning through the policy review cycle, countries may later pursue more ambitious goals in
terms of a life-cycle approach to SCP and complex integration of measures across production systems.
Within this experimental and learning approach to SCP policy development, specific SCP programmes can
be formulated to provide opportunities to explore innovation and reach initial achievements, even though
this may happen in economic niches. Inventories of SCP needs, opportunities and initiatives can provide
initial benchmarking on which to build more structured sets of interventions. The review of such programs
at medium-term intervals, e.g., through a five years cycle, can offer opportunities for experimental learning
and policy review and adaptation. This process can lead to further integration in sector wide approaches and
mainstreaming of SCP into economic development planning (Figure 5:4).
Box 5:2 Guiding questions for SCP programme priority selection
GuidingQuestions
What are the environmental, economic and development priorities in the country?
What SCP areas have been covered by existing policies, instruments and regional, national,
subnational and sectoral activities and initiatives? The plans, policies, processes, strategies and
implementation measures identified during the institutional mapping will provide guidance in
answering this question.
What areas were covered by discontinued policies or completed activities?
What have similar countries used as their priority areas?
What areas would be the most challenging to implement?
What important areas have not yet been covered?
In asking these questions, it is also useful to explore the following:
What SCP areas and opportunities will be easiest to implement early in the mainstreaming process?
Which people, groups or institutions have the greatest leverage or influence on the system? These
may include politicians, researchers, media, technocrats, consumer groups and the private sector.
Which processes are currently under development or review and provide opportunities for
intervention?
Source: (UNEP 2009)
page
84
Part A
Figure 5:4 National SCP programme cycle

Integrated
in NSDS,
NEAP, PRSP
Inventory
National SCP
Programme Cycle
Action Plan /
Strategy
Framework of
Programme
Sectoral /
Issue-based
Plans
Source : (Bentley 2008)

In the end, there is no single pathway towards mainstreaming SCP into economic development. As a possible
conceptual model (Figure 5:5), we can consider that the reform agenda needs three broad pillars to unfold:
1. A process of action-learning (which can be facilitated by SCP programmes) which can help establish
momentum, identify and pursue opportunities, test new systems and develop strategies;
2. A process to support policy formulation, implementation and gradual mainstreaming;
3. A process of mobilising resources and building capacities to support implementation which fits the
national context and needs, and further enables monitoring and policy review and adaptation.
Figure 5:5 The program, mainstreaming and implementation continuum

Establishing SCP momentum
via programs
Mainstreaming SCP
Implementation
Identify SCP priorities and opportunities
Identify policy options and measures
Establish M&E system

and capacity
Find entry points in the policy process
Gather country specific evidence on

SCP costs and benefits
Adequate resourcing of policy

implementation and M&E
Assess capacities and needs
Identify priorities, sequencing and

promote vision
Link to budget allocation process
Find champions of change
Build capacities within institutions
Build public awarness
Identify avenues to influence

mainstream (sector or economic)
development strategies
Strengthen insttutional framework

for policy review, adaptation and
implementation cycle
Gather evidence of impacts
Source : (Adapted from UNEP 2009)
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 85
Mainstreaming and integrating SCP in the national policy framework can be strengthened through the following
approaches:
Minimise the risks that a proliferation of action plans may fragment the focus of attention and
weaken momentum. Plans and targets need to be commensurate with the political momentum and
implementation capacity, especially with regard to inter-agency coordination. In practice, this can
prove difficult; implemention of action plans must necessarily be carried out by different sectoral
government ministries, leading to a number of different action plans. The challenge lies in ensuring
that such action plans are in consonance with an overall, holistic SCP policy, which in turn is integral
to a countrys overall planning for development.
Lack of monitoring mechanisms for policy implementation hampers the policy feedback and the
possibility of developing an SCP framework in a gradual and experimental manner. With the growing
complexity of SCP policy options (from regulatory guidance, to fiscal incentives to public awareness
etc.) gathering evidence from policy implementation can be challenging.
Monitoring enables evidence based policy review. The lack of a robust policy review system
undermines both the gradual development of the SCP agenda and the progressive ironing out of
conflicts which may exist among laws and plans as a consequence of SCP-led innovations. Line
agencies and stakeholder clusters need to produce over time shared understanding and approaches
towards SCP. Capacities within the public and private sector need to be built to meet policy goals. All
these processes require time, sustained effort and above all, a feedback system.
Enabling adequate public communication strategies may counter the risk of a weak demand side
for SCP and therefore of a weak economic and political momentum towards sustainable solutions.
Strengthening resourcing and addressing capacity constraints (finance, human resources,
knowledge, technology, skills, tools, and networks) which may ultimately sustain policy implementation,
underpinning the momentum towards mainstreaming. Resource/capacity constraints often form
a complex and inter-linked web: for example, financial limitations can lead to capacity deficits in
technical knowledge, skills and tools.
Identifying laws and policies which are in conflict with SCP objectives and arriving at
resolution of the conflicts. Such issues arise frequently since sustainability concerns may not
have been integrated into existing legislation which may be been drafted decades ago. Typically,
conflicts arise in issues such as land-use laws and insistence on public procurement at the lowest
price, irrespective of environmental considerations, depleting natural resources and changed social
conditions.
Demonstrating good governance, which attracts inflow of funds and technology by aid agencies,
multilateral funding bodies and foreign investors alike. Conversely, conflict and poor governance
aggravate resource constraints.
5.2 Structures and processes for policy implementation

Introduction
Collaboration for SCP Policy implementation relies on structures and institutions and their roles and interaction.
Government ministries in many cases have very limited resources for reaching out to society, especially to rural
and remote areas. Implementation institutions properly staffed and equipped with sufficient resources, can play
a key role as a link between the central government and on-the-ground projects and activities. Sub-national
levels of government, such as municipal authorities clearly play an important role and need to have appropriate
capacity and sufficient resources for effective policy implementation.
On the other hand, there is a limit to what governments can accomplish by themselves and hence there is
a need to form partnerships with key actor groups. Stakeholder engagement and partnership are needed,
depending on context, to guide choices, support visions and transitions and promote consultations and
negotiations. Partnerships may assist with data collection, research, implementation and resource mobilisation
and may be helpful for developing and testing pilot initiatives. It is paramount to engage with the business
community, civil society groups and other non-governmental organisations such as consumer groups and
the media. Adequate communication and education to all parties, including the community can increase the
likelihood of successful implementation.
page
86
Due to the complete dependence on oil for electricity generation, the Government of the U.S. Virgin Islands
encouraged a public-private partnership between its Energy Office and a consortium comprising a specialist
investment banker and technology service providers. The Government joined the Energy Development in Island
Nations (EDIN) initiative in 2010 with a view to secure additional project funds. The project commenced in 200910 with the ultimate aim, of reducing dependence on fossil fuels on fossil fuels by 60% within 15 years. The
Alliance segmented the market into four Government, Commercial/Industrial, Small Business and Residential,
with the emphasis being on the Government. A mix of energy-efficiency measures, energy conservation and
renewable energy solutions is contemplated and the programme is expected to pay for itself (after the initial
investment) by savings in utility costs. Notably, a significant percentage of the outlay would be spent on locallysourced materials and one of the several projects alone created 25 new skilled jobs.
Source: (EDIN 2012)
Part A
Box 5:3 Partnerships for successful SCP policy
Building a governance system for the SCP agenda

The overarching SCP framework and sector-wide SCP plans or strategies need to be supported by a coherent
governance system, that is the definition of institutional roles and responsibilities required to achieve an effective
implementation. This system is the institutional architecture that translates strategies into actions and provides
feedback for policy review. It should also be able to guide not just public choices (e.g., within the government
sphere) but also private national and foreign investments.
A recent review of the status of SCP in Asia (CSIRO & IGES, 2012) has shown an abundance of national
policies, laws, regulations and programmes to support SCP. A key challenge remains the effectiveness of policy
implementation, especially at state and local level. Reinforcing implementation is today often more important than
formulating new policies. Implementation is hindered by a plethora of unrelated factors: for example improper/
inadequate communication of objectives and likely benefits, inertia, corruption, lack of prioritisation, conflicting
laws and regulations and ill-defined task responsibility.
A key factor is the degree and effectiveness of central coordination. As mentioned above, the identification and
promotion (via legislative acts or planning decisions) of a central SCP coordinating agency within government
is often paramount. This agency may not necessarily be within the environment sector, but can be also placed
more centrally within the economic planning functions of government (e.g., Presidents or Prime Ministers Office,
Ministry of Finance, Ministry of Planning or a special commission). Adequate resources, staffing and capacities to
ensure a coordinating and policy guidance role are needed. This central node should play a lead role in supporting
the SCP policy cycle.
The central coordination function needs to support horizontal and vertical engagement, both within the public
administration and across wider stakeholders. Several mechanisms have been utilised to this effect:
Regular roundtable meetings to facilitate the sharing of knowledge and information, developing a
common set of standards and criteria to avoid conflicting policy objectives.
Policy review forums to present and discuss evidence generated by SCP monitoring systems.
Technical backup agencies (e.g., National Cleaner Production Centres) ideally embedded in existing
institutions to ensure long-term viability and proximity to stakeholders needs.
Steering groups or advisory committees for specific SCP initiatives and programs can link central
government agencies with local government and stakeholders and provide a direct connection between
implementation and policy review.
Local government can also play a key role, depending on the decentralisation and devolution context in each
country. Opportunities may exist for local government to pursue innovative solutions in given economic and
regional clusters. The proximity of local government to economic actors and/or its role in setting up local regulatory
frameworks, services and resource allocation can facilitate experimentations and testing of innovative ideas. The
larger and more disparate the country, the greater the role which local government can play in terms of both
implementation and innovation suited to region-specific needs. Local government can lead SCP programs and
provide feedback to central government via association with the agencies responsible for SCP coordination. To
achieve this is obviously essential to decentralise functions with sufficient resources (staff, knowledge, tools, and
systems).
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 87
Box 5:4 Examples of local government role in SCP implementation across Asia
In a Chinese project to enhance eco-friendly pro-poor bamboo production supply chains, the Sichuan
Provincial Forestry Department supported SME capacity development by establishing cluster support
centres, supporting study tours and policy dialogue with other provincial and national government
agencies.
In the Philippines, the introduction of a scheme to promote zero carbon tourism resorts has been
facilitated by the multi-sector Palawan Council for Sustainable Development: this, acting directly under
the Office of the President and in close coordination with the line agencies, implements a clearing
system for new resorts. This system was established as a pioneering initiative through a national Act
specific to Palawan.
In Rayong, Thailand, the city government adopted an integrated plan for a community-based waste
management scheme including recycling, production of organic fertiliser, and production of biogas to
generate electricity. It led the project with national and international partnerships.
Source: (Muller et al 2011 & IGES 2010)
Reaching out to the wider society

Shaping and pursuing SCP goals and strategies cannot be left to government alone. Governments outreach
capacity and mandate in the market place are constrained in different forms: from resource availability to the
often prevailing view that consumer choices should not be closely led. Furthermore, SCP agendas are not
linear processes in pursuance of universally agreed values: in each society, they are affected by value systems,
market factors, geopolitical factors, etc. Specific SCP goals and strategies, therefore, may find themselves in
variable relation with mainstream values and forces. They can be contested among stakeholders.
Figure 5:6 summarises three potential situations of SCP goals vis--vis social values and systems. We can
note how, depending on the specific context, government action may pursue different strategies, ranging from
guidance, to transition management to public consultations and deliberations. All these forms of interaction
will require consistent mechanisms to engage stakeholders: these include market actors, public bodies,
consumers, research institutions, etc.
Figure 5:6 Approaches to SCP in relation to social contexts

Substantial agreement on a
SCP problem and solution
Rough agreement on
ultimate goal, but road
uncertain
SCP needs and

opportunities clash with
mainstream values and
systems
Support short term measures
Support medium-term transitions
Support consultations and

deliberations
Establish supportive policy framework;

abolish perverse subsidies; promote market
transparency to counter monopolies/olygopolies
Command and control will not work;

support envisioning; enable experimenting,
policy review and social learning
Show SCP costs and benefits; enable dicussions

on fundamental paradigms; promote balance
between government, consumers, producers
Source: (Adapted from Tukker et al, 2008)
Supporting the reform agenda with communication and public education

Policy implementation needs to leverage adequate communication strategies. These need to be tailored to
a range of target groups, through specific communication approaches and means.
Communication can :
Assist public officials (at central, regional and local levels) and partners directly involved in SCP
initiatives, to increase the understanding of SCP and support coordination and effectiveness.
Reach out to market actors, to support engagement across value chains and the identification and
seizing of opportunities.
Target the general public, to increase support to SCP policies and awareness of consumption and
production patterns and SCP opportunities.
page
88
Part A
Figure 5:7 Options for communication strategies for key target groups
Consumers
Targeted media and education campaigns

Targeted advertising
Product certification schemes
Partnerships with consumers' organisations
Market actors
Trade events
Partnerships with trade associations
Public campaigns
Institutional players
Policy and assessment briefs

Knowledge management solutions
Coordination and information events
A consistent communication strategy for the general public and market players is particularly important in those
complex and frequent situations where there is a gap or conflict between SCP goals and opportunities on
one hand, and social values and systems on the other hand. In these cases, demand side management via
communication and media is paramount to incentivise progressive consumer action. Consumers behaviours are
affected by factors playing out at multiple levels: from practical opportunities and needs to self awareness and
individual value systems, to the way individual choices are shaped by institutions and rules, to the broader set of
social and economic factors shaping societies.
Therefore, an effective approach to public education for sustainable consumption needs to support actions
at these multiple levels. Figure 5:8 provides a conceptual model for this undertaking, identifying three layers of
factors affecting consumers behaviour: a background level shaped by social, economic and political factors
(this can be influenced via the SCP policy cycle and broader economic policies); a strategic planning level (where
SCP strategic plans, practical opportunities and means, can reinforce and link policy implementation with the
individual behaviour level); and finally a level acting on personal motivation and choices (where activities like public
awareness campaigns can affect personal value systems and purchasing behaviour).
A classic case is the Indian Governments energy Star scheme, administered by the Bureau of Energy Efficiency
which mandates energy efficiency ratings for a number of consumer goods such as refrigerators and air conditioners.
The launch of the Energy Star Rating scheme was accompanied by a large scale advertising campaign aimed at
individual consumers which explained the rationale of the scheme and the benefits to the consumer. The label
itself provides data on electricity consumed in KWh per annum by that particular model/make of appliance, leaving
the consumer in no doubt of the benefits of the higher rating. The scheme has been an outstanding success and
contrasts with the Indian ecolabelling scheme, which was never publicised and which has remained a non-starter
for 20 years.
The Energy Star scheme has been assimilated into Indian buying habits for the prescribed range of electrcial
applicances and amongst the first to embrace the scheme were institutational purchasers from both the public
and private sectors.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 89
Figure 5:8. A multi-layer model of education for sustainable consumption

Influence social and political systems
Implementation
of SCP policy tools
Policies affecting
broader economic
development,
social values
Catalyse practice of sustainable consumption
Overarching SCP strategic

plan to reinforce SCP by
enabling, encouraging,
engaging, exemplifying
and catalysing sustainable
consumption patterns
Influence individual motivation and values

Promote responsible
behaviour and
self-awarenes of
purchasing decisions
Develop
environmental
citizenship through
value promotion
Source: (Based on IGES, 2010 which provides detailed guidance)
Peerayot Sidonrusmee
page
90
Planning for change, Guidelines for national programmes on sustainable

consumption and production provides an introductory framework for developing SCP
programs through the policy cycle. It focuses on programs design and elaborates on the
importance of coordination and high level support.
Part A
Further reading 5
Bentley M 2008, Planning for change. Guidelines for national programmes on sustainable
consumption and production. UNEP, Paris.
Mainstreaming sustainable consumption and production and resource efficiency

into development planning presents detailed guidance on mainstreaming SCP goals
and strategies throughout national planning systems. It is designed for officials involved
in policy making and SCP practitioners. It covers the design of SCP policy measures and
strategies to reflect them in mainstream development frameworks.
United Nations Environment Programme 2009, Mainstreaming sustainable consumption
and production and resource efficiency into development planning, UNEP, Paris.
Capacity Building and Policy Needs Assessment for Sustainable Consumption

and Production: Executive Summary is a recent report that provides an updated
assessment of the status of SCP in Asia. It considers policy formulation, implementation
capacities and lessons learnt from the first cycles of policy development and program
implementation across the region.
CSIRO & IGES 2012, Capacity Building and Policy Needs Assessment for Sustainable
Consumption and Production. Executive Summary, UNEP SWITCH Asia Policy Support,
Commonwealth Scientific and Industrial Research Organisation & Institute for Global
Environmental Strategies. Available from: <http://www.switch-asia.eu/fileadmin/content/
PSC/AssessmentSummary.pdf>. [15 August 2012].
Sustainable Consumption and Production in the Asia-Pacific Region. Effective

Responses in a Resource Constrained World provides comprehensive guidance to
several key aspects of policy implementation. In particular, it provides detailed theoretical
and practical knowledge on public education strategies.
IGES 2010, Sustainable Consumption and Production in the Asia-Pacific Region. Effective
Responses in a Resource Constrained World, IGES White Paper III 2010, Institute for
Global Environmental Strategies. Available from: < http://www.iges.or.jp/en/news/topic/
wp3_main.html>. [September 2012].
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 91
Part A
Monitoring and Evaluation
6.1 Understanding monitoring and evaluation

6.2 SCP indicators
SCP
x
x
SCP?
Excellent
Good
Average
Poor
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 93
Monitoring and Evaluation
Excellent
Good
Average
Poor
Key Points
Policy monitoring and evaluation is an ongoing activity. It is essential
for determining the need for extending, adjusting or ceasing a policy.
Effective policy monitoring and evaluation requires well thought out
indicators.
Some important frameworks exist that can be utilised when identifying
indicators and when devising indicators systems.
Commonly used criteria exist for good indicators, in the context of
developing and emerging countries.
This section highlights the importance of robust monitoring and evaluation of SCP policies. Monitoring and
evaluating should not just be thought of as an after-thought, it is a critical step in the policy cycle that allows for
learning and improvement. Guidance is provided, to assist in developing a set of well thought out indicators,
for monitoring and evaluating SCP policy.
6.1 Understanding monitoring and evaluation

Monitoring and evaluation
An adaptive approach to SCP policy demands highly developed systems to gain, distribute and use information
to describe progress of SCP policies. Policymakers need to make sure that SCP policy interventions are well
targeted and yield the desired outcomes. Monitoring and evaluation provides this important information.
Most importantly, monitoring and evaluation needs to be understood as an integral extension of policy
implementation a routine and central function and not just an afterthought or add-on to the main game of
policy-making (Dovers, 2005). To allow learning to occur, policymakers need to set up a process and design
for monitoring and evaluation that is robust, timely and delivers both to the purpose of standard administrative
evaluation and the broader learnings that need to underpin the policy process. Policymakers need to consider
the data requirements for monitoring SCP outcomes.
Monitoring and evaluation are central elements of the SCP policy cycle. They are particularly important in the
context of SCP because of the complexity and cross-cutting nature of the SCP policy domain. This creates
a much greater likelihood for policy failures and will present the policy community with a need to design an
adaptive policy process that will rely on the results of ongoing monitoring and evaluation processes.

Data requirements for environmental and policy monitoring
SCP policy monitoring is unlikely to be a discrete and tightly contained activity. Policy monitoring will hence
require a series of steps for monitoring and analysis. The focus of the activity may change as circumstances
change and new knowledge becomes available. This reflects the particular complexity and problems of the
SCP and sustainability domain, as well as the standard insight of traditional public policy, that policy making is
an iterative process. Table 6:1 gives an overview of monitoring implications for two important SCP domains,
housing and mobility.
Table 6:1 Monitoring and policy intervention: Introducing SCP in housing and mobility
page
Substantive
issue
Policy problem
Policy instrument Key interests and

outcomes
Building energy
use and GHG
emissions
Increased
appliance and air
conditioning use,
low insulation
standards
Carbon tax
increasing the
costs of electricity
and emissions
94
Reducing
energy and
GHG emissions
of buildings,
incentivising
building efficiency
gains and efficient
appliances
Monitoring implications
Short term: purchase of
energy efficient appliances,
investment in building
insulation
Long term: reduction target
in energy use and GHG
emissions achieved
Carbon tax, tax offset for fuel efficient

private cars, free
public transport on
main commuter
routes
Reduce private
transport
emissions,
increase public
transport use
Short term: up-take of public

transport and purchase of
energy efficient vehicles
Long-term: substantial
reductions in GHG emission
form private transport
Part A
GHG emissions Increased private

from private car car ownership,
use
lack of public
transport
capacity
The example in Table 6:1 shows that there are several target areas for policy monitoring and hence the data that
needs to be gathered will vary accordingly. Data would be relevant in three categories:
1. Policy impact, effect or uptake, measuring the extent to which the policy instruments effecting
behavioural change in favour are being applied or used.
2. Environmental and/or social conditions, which are sought through the policy intervention. Examples
include trends in resource use, emissions, poverty levels and whether they improve through the policies
or not.
3. Secondary influences, both policy and environmental, which may be affecting the ability of policy
instruments to achieve the desired SCP outcomes. Such factors may include pressure indicators,
natural environmental variables and policy variables (such as perverse incentives, or countervailing
commutations).
It is important that the policy community states clearly:
1. What objectives are being pursued and how progress can be tracked.
2. What measures are being used to achieve such progress and how the success of these measures can
be measured in the interim.
3. What other factors might influence achievement of the objectives and how that influence can be identified.

Review, evaluation and policy iteration
During the policy formulation and implementation stages of the SCP policy program a review framework needs to
be set in place. Working towards an informed evaluation is an essential discipline that will increase the chances
that all aspects of the SCP policy will be evaluated. This will include setting dates for mid-term reviews as well as
a major review. In developing countries these review dates will ideally be synchronised with the national planning
cycles of the 5 year plans.
Government agency staff will most often undertake the policy evaluations and many large agencies already have
dedicated evaluation staff. The evaluation also may be undertaken by commissioned consultants and researchers,
or by committees of parliaments, or special commissions of enquiry. For SCP policies, because of the extended
policy community and participatory nature of programs, an inclusive approach to evaluation is recommended.
This may be achieved through consultation, focused meetings and submissions, or by inclusion of stakeholder
representatives as part of the evaluation team. In many cases, the National Development Planning process already
has well established evaluation strategies and stakeholder networks to be involved during the evaluation. This puts
developing countries in a privileged situation for SCP policy evaluation.
Through evaluation of SCP policies, as is the case with many other policies, governments will ensure accountability
and effectiveness in expanding public resources.
Such administrative evaluation may include five strands, underpinned by different rationality, approaches and data
needs:
1. Effort evaluation driven by efficiency concerns, examining the quantity of time and finances used for SCP
policy programs.
2. Performance evaluation, examining the outputs and outcomes of the SCP policy programs in whatever
form these may have manifested (independent of whether the policy goals were being achieved).
3. Adequacy of performance (effectiveness) evaluation, assessing whether the stated policy goals were
being achieved.
4. Efficiency evaluation, exploring whether the outcomes of the SCP policy program could have been
achieved at a lower cost or effort.
5. Process evaluation, which seeks to draw lessons about process and organisational design.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 95
Whilst administrative evaluation is very important, governments may wish to broaden the scope of the evaluation
over time to include multiple interests and organise the evolution process in a participatory manner, to favour
long-term policy learning over near-term program efficiency and outcomes. Ultimately, evaluation should inform
future policy action regarding whether to:
a. Discontinue the policy because the problem has been satisfactorily resolved.
b. Persevere with much the same policy because it appears to be working although the problem
remains and goals have not yet been fully achieved.
c. Substantially redesign policy to address failure to achieve the goals.
d. Redefine the policy problem in light of experiences gained to date.
Policy learning might take different forms as is outlined in Table 6:2.
Table 6:2 Policy learning: forms and purposes

Form
What is learned?
Who learns?
To what effect?
Instrumental learning
How well instruments

have allowed the
achievement of goals.
Members of the policy

network, especially
government officials
engaged in policy
formulation and
implementation.
Better design and

implementation of policy
instruments to achieve
predetermined policy goals.
Government learning
How well
administrative
arrangements and
processes have
allowed policy
implementation.
Members of the policy

network, especially senior
officials responsible for
design and maintenance of
policy processes.
Better design of
administrative structures
and processes within the
bureaucratic system (and
engaging outside that
system).
Social learning
How useful are the

Broader policy community,
social constructions of including actors within and
policies and goals.
outside government.
Reframed problems and

related goals, through
changed cause-effect
understanding or altered
social preferences.
Political learning
How to most
effectively engage with
and influence political
and policy processes.
Change in problem
definition, policy goals and/
or membership of the policy
network.
Policy actors wishing to

(a) change policy agendas
and outcomes or (b) defend
current agendas and
outcomes.
Source: (Bennett and Howlett 1992)

The interplay between the environment and socio economic activities
To facilitate effective monitoring and evaluation it is necessary to structure thinking about the interplay between
the environment and socio-economic activities. A variety of frameworks for this exist, one of which is the DPSIR
framework, used by UNEP (for work such as the Global Environmental Outlook) and the European Environment
Agency (EEA). It is a slightly extended version of the well-known PSR (pressure state response) model
introduced by the OECD.
DPSIR stands for: Driving forces - Pressures - State - Impact Responses. This approach can encourage and
support decision-making, by pointing to clear steps in the causal chain and allowing for policy intervention to
change the causal relations to support environmentally and socially beneficial outcomes. The DPSIR represents
a systems analysis view: social and economic developments exert pressure on the environment and, as a
consequence, the state of the environment changes. This leads to impacts for example, on human health,
ecosystems and materials, which may elicit a societal response that feeds back on the driving forces, on the
pressures or on the state or impacts directly, through adaptation or curative action.
page
96
Extended
Driver
Population
Affluence
Driver
Extraction
Industry
Trade
Consumption
Pressures
Polluting
Emissions
Resources
State
Air
Water
Soil Quality
Biodiversity
Impact
Responses
Human Health
Climate Change
Biodiversity Loss
Economic Damage
Policies
Technology
Cleaner Production
Awareness
Part A
Figure 6:1 The DPSIR framework
Source: (European Environmental Agency n.d.)
6.2 SCP indicators

Why do governments need SCP indicators?
Governments in all countries for a number of purposes and in various policy areas use indicators. Indicators
convey information about the current situation using a format that is easy to understand. Out of the large pool of
statistics and other kinds of data that exist in each country, indicators represent selected pieces of information
that are chosen because they highlight areas of key importance for policy making. Indicators can be used both
internally by government agencies and for communication with citizens, private enterprises and other actors. In
most cases, indicators are quantitative measures derived from national statistics or are based on surveys. SCP
indicators will mainly be used for:
Monitoring progress towards a political SCP objective. In this case the government or the
parliament has already decided what changes they would like to see happen and indicators are used to
determine if progress is being made towards the objective. When indicators are used in this way there
is often a target to be achieved within a certain time frame. An example could be that by 2015 products
meeting certain sustainability criteria should make up 20 per cent of the governments procurement.
Such an objective needs to be followed up at regular intervals and if progress is weak stronger efforts
may be required.
Monitoring trends in areas of key relevance to SCP. In such cases where no targets have been set,
the government may find it useful to follow changes in important areas of consumption and production.
For areas of high environmental and social significance there can be a need to keep informed about
trends through the use of indicators. Since its impossible to monitor all aspects of consumption and
production patterns and their influence on sustainability, it will be important to be strategic in the selection
of indicators.
Benchmarking with patterns of consumption and production in other countries. Comparisons
with other countries can be of value in the policy process to identify countries strengths and weaknesses,
and areas that require new or stronger policies. However, when making comparisons with other countries
it is important to be aware that statistical definitions may differ. Comparing indicators between countries
without checking that definitions are similar can lead to erroneous conclusions.
Raising awareness of the importance of SCP and to improve accountability. Selected indicators
may be suitable for regular reporting to society at large. They can provide information of whether or not
the country is moving towards more sustainable patterns of consumption and production. Reporting
regularly to the public also helps in improving the accountability of policy making.
Indicators can be either absolute, such as hectares of land that is farmed organically, or relative, such as percentage
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 97
of agricultural output (by weight) produced by organic farming. They can also be composite indices combining
different kinds of information into a common metric. An example of such an index is the Human Development
Index (HDI), which weighs together data for GDP per capita, literacy and life expectancy.
The information provided through an indicator is simplified and gives a quick indication about situations and
trends. The underlying reality is always much more complex than shown by indicators, and policy making
typically requires more comprehensive data and thorough analysis of cause-effect relationships. For example,
unemployment (in most cases measured as a percent of the active workforce lacking employment) is a key
indicator that all governments keep track of. Increasing unemployment is a sign that the government might need
to intervene. However, the unemployment rate indicator is just a warning sign; it does not in itself say anything
about what has changed in the economy and what kind of government action might be effective. For example:
is the increasing unemployment caused mainly by a downturn in the export industry or by weak domestic
demand, is unemployment increasing mostly among men or among women, or is youth unemployment going
up disproportionately.
The policy cycle can be structured into four main phases (see Chapter 4.1): problem identification, policy
formulation, policy implementation and monitoring and evaluation. At each of these stages there is a need for
reliable data reflecting the situation in a country. For problem identification and policy formulation, policymakers
typically need rich data sets and advisors with good analytical skills. Consideration of indicators is relevant
during policy formulation and during discussions on new policy objectives it is important to think about whether
suitable indicators can be ,devised. For policy implementation and monitoring and evaluation, indicators can
also play an important role. High-profile indicators can help with increasing awareness on new policies and their
objectives, thereby facilitating implementation. Well-designed indicators should provide feedback on whether
or not policies are having the intended effect.
Figure 6:2 The role of indicators throughout the policy cycle
Problem
Framing
-inform about trends
-help agenda setting
-allow for an informed
public debate
Monitoring &
Evaluation
-measure progress
of SCP
-objectives meaure
effectiveness of SCP
policies
Policy
Framing
-indicators may underpin
policy goals
-figure prominently in a
policy statement in the
form of targets
Policy
Implementation
-policy instruments will be
selected with a view on
performance indicators
How to develop indicators: the process

For governments, the process of identifying indicators can help with mainstreaming SCP. The process can help
government bodies in charge of different policy domains to form a shared vision on the meaning and objectives
of SCP. It can thereby contribute to improved policy coherence. In addition, involvement in the process of
indicator development builds ownership and responsibility. Since SCP is a very broad policy field that spans
across administrative divisions and needs to involve several line ministries or other governmental bodies, the
coordinating/mainstreaming value of such processes can be significant.
In order for indicators to be fully effective, the involvement of civil society, the business community and academia
is desirable. Governments cannot make SCP happen on their own. One consequence of this need for active
contributions from other actors is that the selection and design of SCP indicators needs to reflect the interest
and priorities of other groups in society. Only if the indicators represent a widely held understanding of SCP and
related priority areas can they become fully effective as a coordination mechanism and a guiding tool.
page
98
Box 6:1 Developing SCP indicators: Experience from Latin America and the Caribbean
Part A
Experience shows that the process of jointly developing a set of indicators can have a value that goes beyond
that of the indicator set itself. The people involved in the process will increase their knowledge, both about the
issues at hand (or the substance) and about the perspectives and thinking of others. This can lay the foundation
for improved future collaborative actions towards SCP objectives.
Since 2003, SCP has been a high priority in the agenda of the Ministers of the Environment of the Latin American
and Caribbean region, which designated a specific Council of Government Experts to bring forward the
discussion and ensure synergies in the regional approach. A recent study by UNEP ROLAC analysed existing
SCP policies in the region and associated indicators to identify common approaches and assess sources of
information available for the formulation of SCP indicators in LAC countries. Based on this information, a set of
common regional indicators to measure progress in the implementation of national SCP policies was proposed.
The analysis of policies shows that energy, water, waste management and public procurement are the SCP
aspects prioritised by governments. Data availability appears as one of the key factors determining the SCP
indicators that could be implemented. According to the survey completed by 16 countries from the region, the
type of information available (in over 70% of the countries surveyed) is related to the total water demand, total
energy demand, total fuel demand, the generation of emissions, GDP, energy consumption by economic activity,
census population and housing, production by economic activity, percentage of renewable energy and potential
for further generation, and the number of industrial and agricultural companies. The type of information available
is based on macro-economic and energy data. Information related to SCP of water, waste and procurement is
still developing.
As a result of this study the following 19 indicators of SCP for LAC were proposed, covering the fields of
water, energy, waste management and public procurement. For effective implementation, they may need to be
reduced to a set of core indicators, for example 5 to 7. They must be scientifically based, legitimate and easy to
understand to enable successful SCP monitoring.
Indicators
1. Annual energy demand in relation to GDP
2. Annual energy demand in relation to population
3. Annual energy demand per economic activity in relation to total production
4. Energy generation from renewable sources in relation to total energy generation
5. Annual water demand in relation to GDP
6. Annual water demand in relation to population
7. Annual water demand per economic activity in relation to the production completed
8. Total amount of solid waste generated in relation to GDP
9. Total amount of solid waste generated in relation to number of inhabitants
10. Total amount of solid waste generated per economic activity in relation to final production
11. Total amount of solid waste recycled and reused in relation to the total amount of solid waste generated
12. Total amount of hazardous solid waste in relation to the total amount of solid waste generated
13. Total volume of polluted water in relation to the GDP
14. Total volume of effluents to be processed per economic activity in relation to the total production
15. Total volume of effluents processed in relation to the volume of effluents that need processing
16. Total amount of public procurement of material x with sustainability criteria, in relation to total public
procurement of material x
17. Total amount of sustainable/green products procured in relation to the total of products available in
the market
18. Number of countries with legal instruments in SCP and/or strategies in relation to the total number of
countries in the region
19. Number of educational programs that incorporate SCP issues in relation to total number of national
educational programmes
Courtesy: Metternicht 2012
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How to structure data and identify indicators that reflect critical aspects

There is a large pool of environmental and sustainability indicators available today that may be employed for
analysing SCP performance.

UNEP SCP indicators approach for developing countries
UNEP has developed an approach for SCP indicators outlined in the publication SCP Indicators for Developing
Countries: A Guidance Framework. It aims to provide guidance to government departments for selecting their
national SCP indicator sets. The framework is based on the notion of the following five capitals.
1.
2.
3.
4.
5.
Natural capital
Manufactured capital
Financial capital
Social capital
Human capital
These capitals are related but not fully substitutable. In essence, for SCP to be successful in a country, natural
capital should not decrease below a threshold of critical natural capital.
The framework identifies 4 important aspects for developing measurable SCP objectives and related indicators.
They include the critical natural capital approach and the efficiency based approach as well as compliance
and connectivity. According to the UNEP guidance framework, indicators need to provide information that may
guide changing behaviours of producers and consumers. They suggest that in addition to a set of macroeconomic indicators relating to the SCP performance in a country, it would be important to also develop
indicators that reflect the activities of individual consumers and producers in terms of the four perspectives.
Figure 6:3 The SCP compass
Source : (UNEP 2008)
page 100
For producers, their mind-set could consist of:
For consumers, their mind-set could consist

of:
Compliance a minimum contribution, where the firm Compliance where consumers purchase
ensures compliance with the law and merely acts to on the basis of price and utility without a sense
sustain its right to operate.
of influencing producer actions through their
consumption choices.
Part A
Table 6:3 Mindsets of producers and consumers
Efficiency where a firm is prepared to look at changes Efficiency where consumers prefer products
in products and processes, minimising the throughput that have a greater efficiency or reduce resource
of resources (material, energy and water) in both use and emissions while retaining utility.
production and product life cycle.
Connectivity where a firm recognises its Connectivity where consumers take steps to
interdependence on social and human capital and takes influence producers through their consumption
steps to build those capitals.
decisions and recognise that their success will
depend on their access to social networks, income
levels and self-esteem.
Critical stock where a firm recognises the need to
maintain a critical stock of natural capital and takes steps
to restore natural capital or at least avoids its systematic
degradation. To achieve this, firms need to trade-off
short term financial gains for longer-term resilience.
Critical stock where consumer decisions are

focused on the need to retain a critical natural
capital stock. They are trading off short-term
individual gains for longer-term communal values.
The report outlines a set of possible indicators based on the SCP indicators compass Figure 6:3, which in practice
relies less on data for assets (or capitals) and is more based on flow indicators for materials, energy, water and
land, waste and emissions accompanied by economic and social indicators.
Another well know framework focussing on changes in environmental assets is the UN System of EnvironmentalEconomic Accounting. The System of Environmental - Economic Accounting (SEEA) framework is a multipurpose, conceptual framework that describes the interactions between the economy and the environment, and
the stocks and changes in stocks of environmental assets (EC, FAO, IMF, OECD, UN & WB 2012). The SEEA
framework uses a wide range of information and provides a structure to compare and contrast source data and
allows the development of aggregates, indicators and trends across a broad spectrum of environmental and
economic issues. Particular examples include the assessment of trends in the use and availability of natural
resources, the extent of emissions and discharges to the environment resulting from economic activity and the
amount of economic activity undertaken for environmental purposes.
Many approaches based on stock accounting, such as the SEEA, are confronted with the problem of feasibility
of data collection. Flow accounts for materials, energy, water and emissions avoid this problem because they are
usually based on available statistical data that needs to be modified for the purpose of the accounting methods,
but allows for datasets and indicators to be constructed at low costs and within reasonable timeframes. There is
now large agreement on the methods to be used for national material flows accounts, for energy flow accounts
and for water and emission accounting. These accounting frameworks are usually linked to the System of National
Accounts (SNA) and are able to provide data with some sectoral disaggregation and very detailed disaggregation
of flow categories.
A set of national SCP indicators

National SCP indicator sets will need to build on the experience of SEEA, DPSIR and natural resource flow
accounting (material and energy flow accounting). They will need to be highly complementary to the SNA and
need to provide information on production and consumption. SCP indicators, if constructed in such a way, will
be largely based on available statistical information. However, there will be challenges with regards to sectoral
disaggregation, which will be necessary to inform SCP policy information. Another important issue would be to
disaggregate consumers and households by income groups, geography (urban or rural) and potentially lifestyle
factors. Advanced analytical skills that may need to be used to disaggregate data include input-output analysis
and life-cycle assessment. This will allow prioritisation of economic activities for SCP interventions, by identifying
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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such economic domains where SCP policy interventions would make the largest difference with regard to
national SCP outcomes.
Any national (and sectoral) SCP indicator system will need to provide a set of headline indicators along with
some more detailed indicators and would profit from indicator dashboards, i.e. sets of indicators that taken
together provide information on key aspects of a system. Looking at the indicators together, as a set, should
provide an understanding that goes beyond the information conveyed by each individual indicator.
Criteria for quality SCP indicators

Easy to understand and communicate also to non-experts

Reflect a widely recognised concern
Based on conceptually sound calculation methodologies
Encourage systemic transition/transformation/innovation
Based on available or easily obtainable data
Based on reliable data
Based on data that is updated regularly
Possible to construct time-series to observe trends
Sensitive enough to detect changes over the short or mid-term, should provide a reasonably up-todate picture of the situation
Be SMART (Specific, Measureable, Attainable, Relevant and Timebound)
When taken together as a whole, the SCP indicator sets should cover all critical aspects of SCP and provide
decision makers with an adequate understanding of whether or not the country is on the right track to achieving
SCP. Furthermore, a good set of indicators should consist of a limited number of quality indicators as too many,
or weakly structured indicators can easily create confusion.
The quality of the SCP indicator development process and the participation and degree of involvement of
broader social groups will also affect the effectiveness of an indicator set. An open and consultative process
is more likely to generate a set of indicators that are widely understood and supported. There is a trade-off,
however, between context and country specific indicators and indicators that are comparable across countries.
This may be resolved by a common set of headline indicators but country specific detailed indicators.
Lewis Akenji
page 102
When working with indicators in practice there are a number of things to keep in mind. The following points
provide general advice on how to avoid common mistakes and pitfalls.
Seek to get the indicator set approved at the highest political level. Endorsement from the political
level gives indicators extra weight and makes it easier to engage all governmental agencies.
Allocate clearly the responsibility for regular follow-up and reporting. For each indicator, or for
the whole indicator set, there needs to be an institution with coordinating responsibility. Changes
in indicator values need to be clearly documented and communicated to relevant government
agencies as well as to other actor groups, sometimes also including the general public. In cases
where progress is weak it is necessary to agree which part of the government is in charge of taking
remedial action. If an indicator is not based on information generated by the regular statistics
system, it may be necessary to develop new routines for data collection and reporting.
Be flexible and prepared to revise. Working with indicators is and should be a learning process.
There is value in observing the same indicators over several years, but there is also a need to
review and revise indicator frameworks once in a while to properly reflect emerging issues and new
priorities. Hence it is important to strike a balance between continuity and renewal. If the reporting
of indicators is done annually it may be a good idea to have a more thorough review every five
years.
Analyse trends and seek to understand why changes are happening. This requires adequate
resources in terms of staff and skills. Without proper analysis and understanding there is a risk
for ineffective or counterproductive policy response. Indicators only tell part of the truth that is
the reason why they are useful, they simplify a very complex reality into a few metrics that can be
understood at a glance. However, this is also one of the dangers of indicators: that they highlight
certain aspects but ignore others. This underscores the need for regular reviews to make sure that
the indicators used reflect current priorities.
Communicate achievements widely. Use indicators for education, awareness raising and to
improve accountability.
Learn from other countries experiences and share lessons learnt with others. Collaborate in
international networks and platforms.
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Part A
Box 6:2 Working with indicators in practice
page 103
Further reading 6
SCP Indicators for Developing Countries: A Guidance Framework, aims to provide
guidance to government departments for selecting their national SCP indicator
sets. It proposes a structured framework for understanding SCP and for developing
indicators, crucial for monitoring and evaluating progress. This framework is then
tested against existing relevant indicators that are being used in twenty developing
countries.
United Nations Environment Programme 2008, SCP Indicators for Developing
Countries: A Guidance Framework, UNEP Paris.
Moving Towards a Common Approach for Green Growth Indicators is a scoping

paper from the Green Growth Knowledge Platform. It proposes a framework that
provides a common basis for further developing GG/GE indicators, with a special
focus on the economy-environment nexus.
Green Growth Knowledge Platform 2013, Moving Towards a Common Approach for
Green Growth Indicators, Green Growth Knowledge Platform.
Towards Green Growth: Monitoring Progress OECD Indicators presents a

conceptual framework, a proposal for developing green growth indicators. They
are accompanied with a measurement agenda that will help addressing the most
pressing data development needs.
OECD 2011, Towards Green Growth: Monitoring Progress OECD Indicators, OECD.
Handbook on Developing, Monitoring and Evaluating for Development Results

aims to support UNDP in becoming more results-oriented and to improve its focus
on development changes and real improvements in peoples lives. It is a useful
publication for not only UNDP, but anyone operating in the development field.
UNDP 2009, Handbook on Developing, Monitoring and Evaluating for Development
Results, UNDP, New York.
page 104
Part A
Lewis Akenji
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THEMATIC POLICY
OPPORTUNITIES
Part B
N
W
E
S
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Key Points
Tools and approaches such as RECP, PRE-SME, responsible
production and D4S offer most companies practical solutions to
improve resource efficiency and embed preventive strategies at the
company level.
Eco-innovation offers opportunities to embed sustainability in a
companys business strategy.
The appropriate combination of SCP policy instruments can create
an enabling environment encouraging industry to transition towards
sustainable production.
Capacity building in SMEs is particularly important as they
contribute a significant portion of industrial production and are often
vulnerable due to lack of information and poor resource efficiency
and environmental performance.
This chapter highlights the importance of preventative approaches, such as Resource Efficiency and Cleaner
Production (RECP), in reducing the environmental impact of production, and ultimately consumption. The
potential benefits are identified, along with policy opportunities for creating a more enabling environment for
RECP.
Why are preventive approaches and decoupling production and consumption

patterns important?
As the world has experienced rapid growth and changes in consumption patterns, resource use and
environmental degradation resulting from industrial production has increased. Impacts of unsustainable
industrial production and utilisation of scarce resources threaten the basis of the economy and negatively
affects society. The consequences of industrial production must be dealt with, or preferably prevented in the
first place. RECP and eco-innovation are preventative strategies (targeting companies at different levels of
sustainability readiness), aimed at decoupling consumption and production patterns from the exploitation of
eco-system services. They provide an opportunity for leapfrogging towards sustainable industrial production
systems that focus on resource efficient and responsible use of natural resources, creating minimum adverse
impacts on the environment (UNEP n.d.).
Historically, actions toward more resource efficient industrial production and the transition towards a Green
Economy have been motivated by emerging regulations, driven by increasing risks and accidents. An alternative
strategy is to instead inspire and support public and private organisations to act upon the opportunities that
resource efficient societies and markets offer. Governments play a pivotal role in enabling and encouraging
preventive approaches through supportive policy frameworks. In many developing countries and transition
economies, SMEs, who are particularly vulnerable to poor resource efficiency and environmental performance
make up a significant proportion of industry, hence policy must be developed for organisations of all sizes,
including SMEs.
Resource Efficiency and Cleaner Production (RECP)
RECP builds upon cleaner production to accelerate the application of preventive environmental strategies at
company level to processes, products and services. Practices and applications of cleaner production have
been around for several decades. The term Cleaner Production (CP) was defined by UNEP in 1990 as: The
continuous application of an integrated environmental strategy to processes, products and services to increase
efficiency and reduce risks to humans and the environment. This definition has been used as a working
definition for most programmes related to the promotion of cleaner production and is still relevant today. CP
addresses problems at the source, using a product lifecycle approach that considers techniques, process and
service dimensions.
In recent years, as the economic and environmental crises have intensified, UNEP and UNIDO introduced
resource efficiency alongside cleaner production (RECP) to advance production efficiency, environmental
management and human development (UNEP n.d.). This strategy integrates the strengthened lifecycle
perspective which looks at the point of extraction to the point of disposal, including the critical issue of resource
scarcity.
page 108
Involvement in all phases of the product lifecycle allows RECP to investigate ways to improve the efficiency
of production and modify or minimise inputs to achieve triple bottom line improvements. Resource efficiency
achieves environmental management through the minimisation of waste and pollution. Production efficiency
makes business sense as it foregoes the use of unnecessary materials and reduces energy use in producing
goods and services. Lastly, humans benefit from the efficient and cleaner processes as it promotes judicious use
of resources.
Box 7:1 RECP for low carbon development

RECP is a fitting approach to low carbon growth as it promotes preventive environmental strategies that increase
efficiency and reduce impacts to humans and environment (UNIDO 2010b).
Part B
RECP reduces environmental impact and pollution by minimising the use of resources to lessen waste within the
production system. These strategies, in effect, attempt to exemplify a preventive stance towards environmental
management, choosing pollution prevention rather than end-of-pipe treatments. Measures include adoption of
environmentally sound technologies, introduction of process modification and substitution of raw materials.
Box 7:2 National Cleaner Production Centres (NCPC)

To support mainstreaming of resource efficiency and cleaner
production (RECP), the joint UNIDO UNEP RECP Programme has
supported national capacity building through NCPCs and other
qualified institutions since the 1990s. The Programme works through
its 55 RECP network (RECPnet) members from close to 40 countries
- with like minded institutions, the private sector (particularly SMEs),
policymakers and other stakeholders at the national level to promote
a more resource efficient and Green Economy. Programme activities
focus on: network enhancement (expanding and building capacities);
company applications of resource efficiency, waste and emission
prevention and safe and responsible production; policy mainstreaming
and enterprise finance, and on enhancing innovation to support the
adaptation and adoption of Environmentally Sound Technologies and
sustainable product developments. In 2013 at the 3rd Global RECP
Conference, regional action plans were developed. In addition to
continuing support for RECP and safer and responsible production,
eco-innovation was highlighted as a growth area. RECPnet members
are also active UNEP national partners in the areas such as energy
efficiency, sustainable tourism, waste management and sustainable
public procurement.
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Box 7:3 Understanding the prevention strategy discourse

Eco-efficiency, industrial ecology/industrial metabolism, pollution prevention, green productivity and waste
minimisation are concepts related to RECP and are often used in the discussion around sustainable industrial
production. At times these terms are used synonymously and interchangeably. (UNEP n.d.)
Figure 7:1 RECP innovation across Asia
Safer and Responsible Production

A related approach, Safer and Responsible Production, allows a company to ensure both the safety and
health of workers in facilities that manufacture, store, handle or use hazardous substances, and the safety
of communities around such facilities, as well as the prevention of releases of these substances into the
environment
Safer and responsible tools, guidelines, and management principles can be implemented at site and local level,
and along the value chain, to establish an environmentally sound management system that reduces the risks
to humans and pollution to the environment. Safer production is a step towards the prevention of industrial/
technological accidents by identifying risks and providing measures to control or manage them.
At the national level, safer production is promoted through policies supporting the development of chemical
accident prevention and preparedness programmes. At the local-level safer production implies preparedness
for emergencies in communities where hazardous installations are located. At the site-level, safer production
usually includes the implementation of Process Safety Management (PSM). Responsible Production applies
safer production principles at the site-level and along the value-chain.
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The Responsible Production approach includes practical guidance and tools to assist companies in:
1. Identifying and understanding the hazards and risks related to the company products and operations.
2. Identifying opportunities for reducing risk and costs.
3. Identifying and engaging with business partners and communities to improve safety and preparedness
for accidents with chemical products.
4. Promoting risk communication and product risk information along the value chain.
5. Training workers and business partners in chemical safety.
6. Improving procurement systems to include chemical safety management.
7. Measuring and communicating performance in a transparent way.
Part B
Safer and responsible production is very important as accidents and irresponsible activity can lead to a range
of adverse effects for business, the public and the environment. Enhancement requires engagement of multiple
stakeholders such as the private sector, government and the community on awareness, prevention, preparedness
and management of industrial risks (chemical accidents). National and local governments can play a key role in
promoting safer and responsible production through policies and awareness raising and can support initiatives to
build industry capacity, particularly within SMEs.
Box 7:4 : UNEP APELL Programme
Associated with safer and responsible production is the UNEP programme, Awareness and Preparedness for
Emergencies at Local Level (APELL). The strategy of the APELL approach is to identify and create awareness
of risks in an industrialised community to initiate measures for risk reduction and mitigation, and to develop
coordinated preparedness between industry, local authorities and the local population. This is specifically
of concern for the chemical and mining industries, and the transportation of hazardous substances, and is
applicable to safe industrial estate management. APELL can be useful in any situation that requires joint planning
by several parties to develop integrated and well understood response plans ready to be implemented should
an accident occur, and is relevant to both national and local governments.
Design for sustainability (D4S)

Companies can also apply sustainable product targeted approaches such as Design for Sustainability (D4S),
which targets product and service interventions. D4S is a globally recognised method for companies to improve
profit margins, product quality, market opportunities, environmental performance and social benefits. By improving
design and efficiencies in the products and services they produce and deliver, companies can achieve win-win
solutions for shareholders, consumer, and the public. Using a lifecycle approach, D4S moves the boundaries of
change beyond the production processes, to encompass solutions that can improve efficiencies, product quality
and market opportunities (local and export) and at the same time improve environmental performance and offer
additional value to customers (e.g. enhanced functionality).
Increasing regulation, energy and resource costs and enhanced environmental and social awareness are beginning
to drive D4S in developing countries and transition economies. Goods which are exported increasingly need to
consider environmental and social aspects, to ensure global competiveness. Whilst developing economies face
challenges in integrating D4S into business development and product design practices, there is a unique potential
to bypass traditional resource intensive and pollution generating development patterns. Such leapfrogging may
also help to address other issues such as poverty and urbanisation. A number of projects such as Cleaner
Production for Better Products (CP4BP) and Sustainable Product Innovation (SPIN), carried out in Vietnam,
Cambodia and Lao PDR are already demonstrating how D4S can enable companies to decouple resource use
from economic growth.
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Box 7:5 D4S across the globe

D4S for packaging in Costa Rica
Microplast and CEGESTI in Costa Rica carried out a very successful D4S project, to improve the sustainability
of HDPE bottles. Microplast is one of several suppliers of HDPE bottles to a large organisation, which uses over
300,000 bottles a month for milk and juice packaging. Through product redesign of the HDPE bottles, they
achieved a 45-50% reduction in materials and a 25% improvement in distribution efficiency. Additionally, the
ergonomics and attractiveness of the bottles were improved and less reprocessing was required (UNEP 2009b).
Liter of light lighting homes across the world
A new technology, which uses upcycled plastic bottles filled with water and chlorine, is helping to improve
the lives of the poor through affordable lighting. When installed in the roof these liters of light refract sunlight
creating a low cost, sustainable 55 watt solar bulb. Credited to Alfred Moser and MIT, this creative solution is
spreading across the world, with MyShelter Foundation, an NGO in the Philippines, already installing these liters
of light in 28,000 homes, servicing 70,000 people. (A Liter of Light 2011)
Eco-innovation
For companies that are ready, eco-innovation offers a positive response for business and industry to the
growing challenges of resource scarcity and environmental degradation. As market, reputational and regulatory
pressures increase, eco-innovation provides a business approach which addresses these strategic, long-term
issues. Eco-innovation can offer win-win solutions by bringing about a more radical, systemic transformation
to enhance the business sustainability and improve economic competitiveness.
UNEP (n.d.) defines eco-innovation as the development and application of a new business strategy that entails
a combination of a significantly improved or new product (good/service), production process, organisation and
business model that will lead to improved sustainability performance. It operates at the level of a company
strategy and goes beyond traditional incremental product improvements. Instead it aims at mainstreaming
sustainability based on a holistic life-cycle approach throughout all the companys operations. Eco-innovation
builds upon the work of RECP, safer and responsible production and D4S to embed sustainability into the
companys business model and create business value.
For eco-innovation to be viable for a company, an enabling environment is required. Important conditions
include: the willingness and readiness of the company, the value chain, the market, national and regional policy
frameworks and the extent of research and development capacity within the country. Policymakers can play a
significant role in supporting these conditions through regulation, standards, initiatives and economic incentives
to promote research and development, innovation and technology adoption for sustainable solutions.
Box 7:6 The Eco-Innovation Project: Promoting Eco-Innovation and Resource Efficiency in
Developing and Transition Economies
UNEP and the European Commission have partnered to promote resource efficiency and eco-innovation
in an effort to change consumption and production patterns in developing countries and economies in
transition. Targeting RECP service providers who work with SMEs, the project seeks to address growing
market awareness of the sustainability of products by augmenting industrys capacity to deliver responsible
goods and services. Key value chains and industrial parks will also be engaged in order to reach a visible,
substantive impact.
The project aims to:
Build the policy and business cases for action
Enhance capacity in the private sector to develop eco-innovation solutions
Enhance the policy context by developing and disseminating eco-innovation policy guidelines
Share and disseminate best practices and lessons to upscale eco-innovation success.
(UNEP n.d.)
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Creating enabling conditions for RECP and Eco-Innovation

through effective policy instruments
Regulatory instruments can be developed with varying levels of interaction (specified or negotiated) between
governments and industry.
Part B
Through an effective combination of policy instruments, governments can create the enabling conditions to
support RECP and eco-innovation. Developing and implementing the appropriate policy framework requires multistakeholder participation and combined efforts to understand the economic and business case for engagement.
In this decision-making it is important to integrate: business intermediaries, industrial firms, networks or chains of
firms, and regional infrastructure in a broad system. It is also key to support and enhance technical capacities of
SMEs and address evolving market requirements. There are many different policy instruments that can be used
for strengthening RECP efforts which can also contribute to creating the enabling environment for eco-innovation.
Depending on the national context and outcomes of multi-stakeholder engagement, policymakers can determine
which mix is most suitable.
Governments can also work with industry to develop co-regulatory and self-regulatory policy, which is not
necessarily mandatory. These are voluntary policy approaches, which are effective in providing incentives to
companies to be not only compliant with the statutory requirements but also to go beyond.
Table 7:1 Examples of regulatory policies

Examples of Regulation (specified by government or Mandatory EMS & reporting as part of the permitting
negotiated between government and industry)
requirements. Public disclosure of information could
be included.
Requiring RECP audits and action as part of the
permitting conditions.
Substance bans to phase out environmentally
harmful materials.
Examples of standards and voluntary initiatives
Negotiated Agreements between regulatory

agencies and private sector enterprises or sectoral
organisations.
Eco-labelling
Knowledge centres and networks for information
sharing and collaboration
ISO 14000 and ISO 50001 Standards
Reporting requirements to publicly disclose
information about environmental performance.
Industry Codes of Practice, such as the International
Chamber of Commerces Business Charter for
Sustainable Development and the chemical
industrys Responsible Care Programme.
Economic instruments are often used to address environmental externalities and to stimulate the demand for
more sustainable goods and services. Addressing environmental externalities can be done by incorporating the
costs of pollution into firms operating costs or creating property rights for pollution, leading to the development
of proxy markets such as with tradable permits. A careful analysis to identify and evaluate any existing economic
incentives is crucial before introducing any new instruments.
Market based instruments can take several forms as shown below.
Taxes, fees and charges: raising the costs of unwanted outputs, or by providing incentives to promote
more efficient use of natural resources.
Liability: firms are legally responsible for all the environmental damage they cause, even if they have
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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exercised due diligence and met their legal requirements.

Subsidies: such as low interest loans, direct grants or lower tax rates can be used to stimulate
preferential industries and practices and encourage innovation such as funding for green technologies
Schemes: such as Sustainable Public Procurement which can stimulate the market for sustainable
goods and services.
Informational strategies can be used to further promote RECP and eco-innovation. They can provide
incentives, build capacity and encourage technology development and adoption. Some key informational
strategies can include the development of networks for collaboration and information sharing, national
programmes to improve technical capacity and skills requiring public disclosure of firms environmental
performance, promoting effective training initiatives and showcasing best practice and demonstration projects
to exhibit the economic and environmental benefits of RECP projects.
Supporting and building SME capacity is particularly important and should be a key consideration for
policymakers. Providing training and support for RECP and eco-innovation can enhance SMEs ability to
improve environmental performance and improve competitiveness of exportable products. Providing support
for RECP, D4S and safer and responsible production in SMEs is necessary to address information and capacity
needs. RECP service providers present a useful link between policymakers and industry, and are an excellent
vehicle for building capacity in industry of all size, particularly SMEs.
Box 7:7 The Circular Economy Promotion Law: RECP policies in China
The Circular Economy Promotion Law passed in China in 2008 is an example of RECP policy in action. A
Circular Economy (CE) puts emphasis on the most efficient use of resources and promotes reducing, reusing
and recycling. It supports resource efficiency by integrating cleaner production and industrial ecology in
a broader system including industrial firms, networks or chains of firms, eco-industrial parks and regional
infrastructure.
The CE initiative targets resource efficiency at three levels:
At the individual firm level, the manager must seek much higher efficiency through Cleaner
Production (primarily reduce, reuse and recycle).
Reuse and recycle resources in industrial parks and clustered or chained industries, so that
resources will circulate fully in the local production system.
Integrate different production and consumption systems in a region so that resources circulate
among industries and urban systems.
The law was designed such that coordination and regulation is the responsibility of government across all
levels and from a number of relevant departments.
Source: (UNEP n.d.b)
shutterstock
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Further reading 7
United Nations Environment Programme 2010, Responsible Production Handbook- A

Framework for Chemical Hazard Management in Small and Medium Sized Enterprises,
UNEP, Paris.
Eco-innovation manual The Eco-Innovation Manual provides a stepwise guidance to

support technical experts in assisting SMEs to implement eco-innovation in developing
and emerging economies. The intended audience of this Manual is technical experts
working in companies and organizations that provide professional services to guide and
support manufacturing companies to improve their sustainability performance.
Part B
Responsible Production Handbook- A Framework for Chemical Hazard Management

in Small and Medium Sized Enterprises UNEPs Responsible Production approach is
a systematic, continuous improvement approach to chemical safety along the valuechain. The Handbook provides a set of technical materials and tools to assist companies
in understanding hazards, control chemical exposure, reduce accident risks, engage
stakeholders and promote chemical stewardship.
UNEP 2014, Eco-Innovation Manual: Working version for Pilot Application, United Nations
Environment Programme, Paris
Promoting Resource Efficiency in Small & Medium Sized Enterprises (PRE-SME)

Resource Kit is a user-friendly electronic tool accompanied by a hard-copy handbook,
that provides SMEs and service providers from developing and transitional economies,
with comprehensive learning on Resource Efficiency. It enables SMEs to achieve
cleaner and resource efficient production organised by resource category (water, energy,
chemicals, wastes and materials) with a clear methodological guidance, based on an indepth survey and review of existing tools and techniques.
United Nations Environment Programme & United Nations Industrial Development
Organization 2010, PRE-SME Resource Kit, UNEP & UNIDO.
Design for Sustainability: A Practical Approach for Developing Economies is a tool

which outlines what Design for Sustainability (D4S) is and what might motivate companies
to adopt it. The backbone is composed of the three practical, step-by-step approaches to
execute a D4S project: needs assessment, redesign and benchmarking. Clear reference
information and case studies that can support the project are also provided. (http://www.
unep.fr/scp/publications/details.asp?id=DTI/0826/PA)
United Nations Environment Programme 2006, Design for Sustainability: A Practical
Approach for Developing Economies, UNEP, Paris.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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8.1 Supporting sustainable consumption choices

8.3 Sustainable products and product information
Part B
Sustainable Lifestyles
N
W
E
S
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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Sustainable Lifestyles
Key Points
A critical mass of sustainable consumers can influence the products
available on the market and also make it easier to implement policies.
However, although in theory consumers have freedom of choice,
macro factors, production culture, as well as social and physical
infrastructure have a much higher influence on consumption
patterns.
Sustainable consumption is not just about buying the more
sustainable products. Refusing to consume when not necessary and
engaging in alternative means of satisfying needs are also important.
Some approaches to mainstreaming lifestyles include taking
unsustainable options out of the market (choice editing) or restricting
advertisement practices.
Sustainable product design, switching from products to services
and collaborative consumption are examples of approaches to
sustainable lifestyles.
Transitioning towards SCP requires a shift towards more sustainable lifestyles. This requires tackling the
complex arena of consumer behaviour. The shift cannot be left to individual actors, it requires government
support through a broad package of policy tools. This chapter explores the role of government in supporting
the transition towards sustainable lifestyles, considers what is required for encouraging sustainable behaviour
and details policy options such as choice editing, advertising, promoting sustainable products and increasing
product information.
8.1 Supporting sustainable consumption choices

The Consumption Issue
There are some seven billion people in the world, all of them involved in various forms of consumption and
production activities. While the industrialised countries have plateaued in their population growth, established
at high levels of consumption, emerging economies, starting from a low consumption base, are on the rise,
both in terms of numbers and in aspiration to join the ranks of consumerism being broadcast across western
TV channels. Against a backdrop of social issues, natural resource limits and waste problems, the question of
how people live and consume - the lifestyles they pursue - becomes central to sustainability.
Overconsumption as witnessed in North American, Europe and other industrialised countries is on the current
trajectory of developing countries. The continuing increase in population in Asia, Africa and Latin America
needs to sustain itself; in a fast growing economic environment, the level of material consumption per person
also increases. For example, according to the African development Bank (AfDB 2011), there was a growth rate
of 3.1% in the middle-class (defined as those consuming between 2 20 USD per day) in Africa, rising from
126 million people (27%) in 1980 to 350 million (34%) in 2010. For Asia, among non-industrialised economies,
according to the Asian Development Bank (ADB 2010), in 2008 the middle-class had risen to 1.9 billion people,
or 56% of the population, up from 21% in 1990. The ADB report showed that consumer spending in these
non-industrialised Asian economies reached USD 4.3 trillion in annual expenditure. According to the authors,
Asias emerging consumers are likely to assume the traditional role of the US and European middle classes
as global consumers. Looking at growth rates among developing Asian economies over the last 20 years,
the report extrapolated that at such rates, by 2030 developing Asian countries will comprise about 43% of
worldwide consumption.
Consumption of home appliances and electronics, fashion pieces, housing sizes and unit space per occupant,
car ownership are all on the rise. These are typically urban lifestyles, fortified by a high rate of rural-urban
migration. The growing concentration in cities demands many things, including more transportation, more
convenient foods (processed and packaged) and more energy. Relocating to urban areas for employment also
means that some people maintain two houses one which is the family house in the village and a second,
usually a rented apartment in the city, for work which is materially more demanding.
But these glowing consumption numbers by the consumer class do not speak to the large pockets of people
living in poverty both in industrialised and industrialising economies. There is a growing dichotomy of social
existence in the world: on the one hand material consumption is high, sometimes at superfluous levels, while
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on the other hand, hard-knock poverty blights wide areas of cities with slums, and limits well-being opportunities
in villages. In emerging economies, economic growth is lifting many people out of poverty, however a large number
of people remain under the minimum sustenance line, and keep slipping behind. In industrialised economies the
number of people falling out of poverty or going homeless is increasing, while the few at the top continue to see
their wealth grow.
Part B
All of this is happening in a planetary context where there are finite resources to serve as natural capital to
feed material consumerism. Future projections hold further demands on the environment, with serious potential
consequences on human well-being. The International Energy Agency estimates that at the current rates of
consumption, global primary energy demand will rise by 40% between 2007 and 2030. Oil demand will grow from
85 million barrels a day in 2008 to about 105 mb/d in 2030; demand for coal, a highly polluting source of energy,
will grow to 7000 Mtce between 2007 and 2030; the world will need additional power-generation capacity of
about 4800 GW of electricity by 2030. GHG emissions resulting from producing this energy will dwarf the IPCCrecommended cut in global CO2 emissions by 85% over 1990 levels for the world to stay below a 2 degrees
Celsius increase in temperature by 2050. CO2 emissions today are almost 40% higher than they were in 1990
the Kyoto base year and since 2000 have been growing at over 3% per year. Global extraction of metal ores iron ore, bauxite, copper and nickel - is now rising faster than world GDP. Similarly, cement production has more
than doubled since 1990, outstripping growth of GDP by 70%.
The OECD projects that in cities, where most people will be living by 2030, there will be further deteriorations to
urban air quality with severe health effects from exposure to particulate matter and ozone. Exposure of agricultural
crops to ozone costs an estimated 2.8 billion Euros in 2008 (ibid); globally over 2 million people die prematurely
each year due to indoor and outdoor pollution.
Ecological footprint measures show that the world reached its limits in 1986, and since then resource use
continuously outstripped biocapacity. 2006 foot print data show that for every 1.8 hectares available per person
globally, we are each using on average 2.6 hectares. We are living beyond our planetary means, operating
40% above budget. Although the contribution of industrialised nations is historically much more than that of
emerging economies, the consequences will befall everyone, and unfortunately, affect poorer countries even
more. The approach to sustainable lifestyles under the 10YFP involves practical solutions at a local level and
macro frameworks to enshrine providing wellbeing in societal dynamics.
Box 8:1 A dichotomy of social existence: poverty and the consumer class in Asia
Asia is still home to nearly half of the worlds absolute poor with per capita incomes of less than
US$1.25 a day.
By 2030, two-thirds of the global middle class is expected to live in Asia-Pacific.
578 million or two-thirds of undernourished people in the world are in the Asia-Pacific region.
Obesity is rapidly becoming a problem in Asia. The number of obese people in China more than
doubled over the last 15 years.
Two-thirds of people who have no access to safe drinking water live in Asia.
The ground water reserves in Asia are depleting fast. The water table in many large cities, including
Bangkok, Beijing, Chennai, Manila and Shanghai, has dropped by up to 50 metres in recent decades.
Solid waste generation in Asia is expected to rise from 0.76 million tons per day in 2000 to 1.8 million
in 2025 despite recycling efforts.
Activity Areas for Sustainable Lifestyles

Research combining consumption patterns and life-cycle analysis has identified key areas where consumption
has the highest impact on the environment - activity domains and sectors that are responsible for high resource
use and pollution and sometimes facilitate social issues. A broad category is consumer goods. This refers to the
manufacture, use and disposal of lifestyle goods such as electronics and clothing. Key sectors of high impact
include food, housing and transport. In these sectors, water, energy and waste can be considered as crosscutting sectors affecting and affected by almost every lifestyle domain. By changing consumer behaviour in
relation to the above, consumers can have a positive influence on the environment; these are the domains that
define sustainable lifestyles.
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Although a priority order (from the sector with the highest impact to that with lowest) can be established
for industrialised countries, developing countries would need further research, data and ecological footprint
analysis to determine which sectors have the highest environmental and social impacts. There is however,
strong evidence that the above areas are highly relevant in the developing world. Next, the examples of food,
housing and transport are discussed.
Food and drinks
What we eat and drink, how we produce it, and how we dispose of it all have impacts on the environment
and society. The impacts of food start right back at the production stage, including land distribution and use
patterns (as well as social tension from lack of land titles or land grabbing), use of chemical fertilisers that also kill
soil microbes and emissions of GHGs that cause climate change. Food manufacturing and distribution requires
energy and packaging. Eating foods with high levels of sugar or fats tend to cause health problems, such as
obesity and diabetes. At the post consumption phase, packaging becomes waste in need of processing.
Throughout the cycle pesticides from agriculture can leach into water bodies and sometimes into drinking
water, causing further health problems.
Figure 8:1 Food and the environment

Emission:
Resource use:
Agricultural production
and industrial processing
Soil, land, water,

energy,
Soil loss, pesticides,

fertilisers, GHG
emissions, manure,
effluent, antibiotics
Paper, plastic, glass,

metals, energy
Packaging
Packaging waste
Transport fuels
Distribution
GHG emissions
Other air emissions
Energy
Consumption
Solid waste
Source: (EEA 2005)

Box 8:2 Water for life
Water is one of the fundamental supporters of life and a basic commodity for mankind. Today around 783
million people do not have access to safe drinking water and the number is projected to increase.
Tim McKulka
Changing dietary habits by reducing meat and dairy products

can significantly reduce the water and energy footprint. Meat
production requires a relatively high level of energy, cereal,
and water input; and agriculture accounts for 70% of the
global water withdrawal. The Water Footprint Network (2013)
estimates the global average water footprint at 15,500 litres of
water for every kilogramme (kg) of beef, 5,000litres of water
for a kg of cheese, 3,900 litres for a kg of chicken meat, and
1,300 litres of water per kg of barley.
Housing and Building Construction

How we live, where we live and what is used to build our living spaces all have social and environmental effects.
Building construction requires resources such as sand, wood and metals. Many of the materials require pre
processing and some of them are sourced through mining. The mining process alone causes biodiversity loss,
deforestation, emissions of GHGs and use of unhealthy chemicals. While living in houses, we use energy and
dispose of waste. The way neighbourhoods are built impacts many parts of society, including the rate of crime,
the opportunities for neighbours to create strong ties and form vibrant communities and the general well-being
of inhabitants. Finally, at the end of a houses life cycle, the building needs to be demolished, requiring energy
and producing waste.
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Figure 8:2 Housing and the environment

Emission:
Resource use:
Land coverage, air,

water
Constructing dwellings
Metals, minerals, wood,

water, glass energy, etc.
Producing and
processing goods
Air (GHG, pollutants,

water, waste)

water, glass energy, etc
Living in the house
Air (GHG emissions,

water, waste)

water, glass energy, etc
Maintenance
Air (GHG emissions,

water, waste)
Energy
Demolition
Part B
Land, metals, minerals,

wood, glass, energy etc.
Waste (construction
and demolition waste)
Source: (EEA 2005)

Transport and Mobility
The means of transportation we use to get from place to place, how often we travel, and the distance travelled
all add up to have significant environmental impacts. Over the years, largely due to climate change discussions,
there has been increasing understanding of the impact of transport and mobility on society and the environment.
The production of motor vehicles is resource intensive; their use requires constant GHG-emitting fuels and the
construction of roads; and at the end of life the scrapping of cars takes up space, requires energy and may
release harmful substances with potential impacts on human health. Using natural resources and taxes to develop
infrastructure for private car use takes funding away from other projects such as the development of social
infrastructure, neighbourhood parks and alternatives to fossil fuels.
Figure 8:3 Transportation and the environment

Resource use:
Land, minerals,
metals, waste
Energy, minerals,
metals, plastic, glass
Energy
Energy, minerals,
metals, plastic, glass
Emission:
Infrastructure development
Air (GHG),
land fragmentation
Vehicle production
Air, water, waste
Personal transport
Air (GHG, air,

pollutants)
Solid waste,
end-of-life vehicles
Repairing and demolition
Source: (EEA 2005)
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Supporting Sustainable Consumer Behaviour:

The Four-E approach
One of the emerging research-based approaches to assist governments in fostering sustainable consumer
behaviour is the Four Es (SDC 2010) This framework was developed by the UK Sustainable Development
Research Network, to support the UK Governments delivery on its SD strategy. The Es are an easily
communicable theoretical framework which can guide the governments approach to catalyse change in
attitudes and behaviours of people and communities.
To be able to catalyse change, government policy should be designed as a broad package of tools that
when deployed, should have enough momentum to break old, unsustainable patterns of consumption and
production. Behavioural change takes time, governments must be aware of this, and dedicate sufficient
resources and sustained effort while following the four Es to Enable, Encourage, Engage and Exemplify.
1. Enable access to pro-environmental choice
This is to help make it easier for people to become sustainable, by providing them with the necessary tools such
as education, skill and information. More sustainable alternatives should be available and easily accessible, as
well as suitable infrastructure to make it easier to practice sustainable behaviour. Even well-intended people
cannot live sustainably if there are no sustainable products and alternatives available.
2. Encourage people
Government should provide signals that show a clear preference for sustainability and encourage behaviour
change. These could include peer pressure, putting more taxes on unsustainable options and funding more
sustainable practices.
3. Engage people in initiatives to help themselves
Government must take deliberate efforts to engage people in the process of change. For example by providing
input to policy design, in expressing what is meaningful to them and what they care about in real life and in
society, in understanding the advantages and disadvantages of certain behavioural patterns. Research shows
that if people feel that solutions are top-down and they are not engaged, they become less active in realising
the policy objectives.
4. Exemplify the desired changes within Governments own policies and practices
Government should lead by example, showing what it means to be sustainable. Policies such as sustainable
public procurement, prioritising sustainable development projects over unsustainable alternatives, training and
capacity building on sustainable consumption for government employees provide examples of government
leadership.
Examples of these are given in the section below, Framing sustainable consumption policy.
Figure 8:4 The four E approach to support sustainable consumer behaviour
Source: (SDC 2010)
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Box 8:3 Skills for sustainable lifestyles
Part B
Competence for sustainable lifestyles can be supported (e.g. by education) through developing the following
attitudes, knowledge and skills:
Ability to define what one considers to be a good quality of life and to be able to identify the values
upon which this is based.
Realisation of the complexity and often controversial nature of sustainable consumption issues.
Insight into how individual lifestyle choices influence social, economic and environmental development.
Ability to acquire, assess and use information on the consequences of consumption, particularly on
the environment.
Knowledge of consumer rights and central consumer protection laws.
Basic knowledge of the market system and the role of business.
Knowledge of how the production processes are linked to the consumption system.
Basic knowledge of the interaction of pricing mechanisms with the consumers attitudes and behaviour.
Insight into the practicalities of both the supply and demand sides of production and consumption and
their outside-of-the- market relationships to community development.
Awareness of a commoditys intangible and symbolic characteristics.
Ability to recognise, decode and reflect critically upon messages from the media and the market.
Knowledge of social networks responsible for shaping consumption patterns (peer pressure, status,
etc.).
Consciousness of civil societys power to initiate alternative ways of thinking and acting.
Individual and collective understanding of consumer social responsibility in relation to corporate social
responsibility.
Ability to manage personal finances (budgeting, saving, investing, taxes and fees).
Ability to manage physical resources (effective control, maintenance, reuse and replacement).
Knowledge of conflict resolution in general and in particular in relation to consumer related situations
such as product safety, liability, compensation, redress and restitution.
Ability not only to envision alternative futures but also to create reasonable paths of action leading to
these.
Source: (UNEP 2010)
Lewis Akenji
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Table 8:1 Resources from the Marrakech Task force for sustainable lifestyles
Project
Description
Target group
Smart Start Up:
Introducing sustainable lifestyles and sustainable

entrepreneurship into African universities and colleges. An
education program that combines sustainable lifestyles
education with business development skills. Run by universities
in Egypt, Kenya, Tanzania, Mozambique, and Mauritius.
Educators
Students
Young entrepreneurs
Communicating
Sustainability
Practical guidelines for government on how to produce effective National and local
public communications campaigns to facilitate change, based
governments
on various examples of national advertising campaigns.
NGOS
Communicators
Creative
Communities for
SL
A collection of inspiring case studies for best-practice

grassroots social innovations for sustainable urban living people are coming together to form creative communities in
order to solve everyday problems. Examples include responses
to challenges in developing countries like India, China, Brazil,
and South Africa.
Civil society
Designers
Local governments
Global Survey on
SL
Insights from over 20 countries around the globe from young

adults (18-35) in urban areas on their current lifestyles,
aspirations for the future and reactions to sustainable lifestyles.
Policymakers
Business
Communicators
Researchers/experts
NGOs
Intercultural Sister Teaching methods combining life-cycle thinking with global

Classrooms
citizenship; tested on schools in the USA, Mexico, Costa Rica
and Brazil
Educators
Students
Literature review
on Sustainable
Lifestyles
Identified gaps in research which should provide deeper

understanding on SL and how it can be achieved. Also made
recommendations on further research to realise SL.
Experts
NGOs
Policymakers
Making the
Business Case
for SL
A series of seven guidebooks covering business opportunities

and new business models that are required for businesses to
promote SL.
Business
Toolkit for
Advertising and
Marketing
Background information, case studies and simulation

exercises to prompt students in marketing, advertising and
communications to adopt green marketing and responsible
communications practices in their future career. Can also be
used by companies to train their staff on those issues.
Business
Communicators
Students
Teachers
YouthXchange
Youth engagement projects across 22 countries worldwide.

Youthxchange materials have been adapted using local
languages, images and examples.
Youth workers
Local government
NGOs
Students
Educators
Creative Gallery
on Sustainability
Communications
Hundreds of international advertisements on sustainability

issues from public and corporate actors to show multiple ways
to promote sustainable lifestyles and to provide inspiration for
communicators around the world.
Governments
Business
NGOs
Communicators
Source: (Adopted from Ministry of the Environment Sweden n.d.)
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Beyond individual consumers

The banning of plastic shopping bags, campaigns for energy efficient light bulbs and recycling of household
waste are some of the actions that have typified approaches to sustainable consumption in public awareness
campaigns. There is however, evidence that such actions hardly achieve the objective of sustainable consumption.
Studies of the so-called rebound effect demonstrate that relative sustainability gains in efficiency are often upset
by increases in absolute levels of consumption. For example, although washing machines and television sets have
become more efficient, savings per unit have meant that people buy even more - therefore absolute amount of
consumption has increased, outstripping the efficiency gains.
Understanding stakeholder salience: The Triple I model
Part B
Sustainable consumption does not necessarily mean shopping for more sustainable alternatives; it sometimes
means not shopping at all. Finding alternative ways of meeting needs is also a key component of sustainable
consumption. Designing and implementing effective policies is likely to have wider and faster implications towards
sustainability, than hard efforts to change individual actions. As the following section demonstrates, the consumer
is not always king!
The Triple I framework is used in describing and understanding factors that shape production and consumption
and how much influence stakeholders have on the choices they make. It can be used to determine how much
opportunity an individual has in choosing to become a sustainable consumer consumption that has minimum
negative environmental social and economic impacts.
Figure 8:5 The Triple I Model
Macro factors
Economy
Geography
Demography
Technology etc
Impacts
Triple I
Interest
Influence
Instruments
Actor
Environmental
Social
Economic
Source: (Akenji & Bengtsson 2010)

The Triple Is refer to the interaction of interests, influences, and instruments of stakeholders in the productionconsumption chain. To identify intervention points for sustainable consumption, the framework analyses
stakeholders, including investors, manufacturers, distributors, retailers, waste managers and government, using
the Triple Is. This provides an understanding of the drivers of production or consumption by each stakeholder
group, what influences their decisions in the system, and how power is wielded by them or upon them by other
actors. By analysing these elements, it can highlight individual and institutional opportunities and indicate directions
to facilitate a general shift towards more sustainable production and consumption.
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Box 8:4 The Triple Is for assessing stakeholder salience in the value chain
I. Interests represent various stakes in production or consumption.
Who are the key actors involved in the design, manufacture, distribution, retail, use and
waste management of products?
What are their needs / expectations (e.g. housing needs for citizens, well-being of society for
governments, profits for producers)?
What are the drivers, patterns and trends of consumption or production?
II. Influence refers to the role of each actor, influence over others and the actors position and relative
importance in the system. This identifies who the most influential actors are.
What is the role of each actor in the system?
To what extent can each of these actors influence the design, manufacture, distribution,
retail, use and waste management of products?
How much influence does each actor have in the system?
III. Instruments are mechanisms of operation of each actor - what actors use to wield influence,
institutional frameworks under which they operate and opportunities for sustainable change.
What instruments does each actor use to influence other actors in the system (e.g. consumer
boycotts, advertisements by producers, procurement guidelines by government)?
What other institutional aspects are likely to influence the design, manufacture, distribution,
retail, use and waste management of products (e.g. consumer organisations, industry
awards, government and consumer agencies)?
By mapping the Triple Is, a picture emerges of who the most powerful stakeholder is. Given that production
and consumption take place within a broader societal context, results of the Triple I analysis are further placed
within macro factors that affect consumption and production - such as technology, economy, demography
and culture.
Results of such analysis often show that in the larger system, consumers have somewhat less influence than
is often thought. For example, investors pre-determine what is produced, advertising has a strong influence on
consumer decisions and government policies that subsidise unsustainable production make it more expensive
for consumers to afford the more sustainable options.
This is also supported by research looking at everyday practices of households (theories of practice), as well
as studies of how infrastructure affects household consumption. Everyday household consumptive activities
such as bathing, travelling and eating constitute a set of social practices that cut across society (Shove
2006). Demand for household services like energy, water and waste management is structured by the utility
companies, manufacturers and regulators involved in specifying technologies and systems, managing loads
and modifying resource flows. The extent to which everyday household consumption behaviour can change
is not only dependent on consumer attitude but also on highly interdependent socio-technical networks or
systems of provision, the systems through which services or resources are produced, delivered, distributed
and used. As such, a more effective framing of sustainable consumption policy is to look beyond just individual
actions.
Framing sustainable consumption policy

Policies to encourage sustainable consumer behaviour must therefore look beyond just individual choices. They
should address the system within which consumption takes place and seek to address the social and physical
infrastructure that enables consumption. An analysis of literature on successful examples has determined three
key pre-conditions to achieve sustainable consumption and production. These are: the right attitude by all
stakeholders in the production-consumption system; a facilitating system and social infrastructure to translate
those attitudes into concrete action; and sustainable infrastructure (Akenji 2012). (These three are sometimes
referred to as the mindware, software and hardware of sustainable consumption.)

1. The right attitude by stakeholders
Stakeholders in this case goes beyond just consumers; it refers to all societal actors who have an influence
on consumption and production such as farmers, investors, manufacturers, suppliers, distributors, lawyers,
small business owners, government agencies, consumers, waste collectors and recyclers. A target is for each
of these stakeholders to have pro-sustainability attitudes and a willingness to engage in potential solutions.
Interdisciplinary research shows that attitudes are shaped by belief systems, personal values, social norms,
knowledge, the physical environment as well as the legal environment. Examples of how to instil these positive
attitudes is through formal school curriculum as well as public events, awareness-raising campaigns and
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training programs for business leaders, community leaders, judges and politicians etc. By creating an environment
where sustainability is a common aspiration, it becomes easier for consumers to engage in everyday sustainable
lifestyles. An example of building the right attitude is by creating a positive future-oriented vision which people can
identify with, as is the case with the China Dream, and then setting out to provide the tools for people to participate
in realising that vision.
Box 8:5 The China Dream: reshaping consumerism in China
JUCCCE, an NGO facilitating the China Dream, has developed the approach which includes several steps.
Framing the Dream by building coalitions that bring the storytelling power of marketing agencies together
with cultural, sustainability, and lifestyle domain experts. A series of multistakeholder co-creation workshops
help to visualise a better quality of life for Chinese and their children through living more, not just having
more. This is complemented with a carefully curated visual lexicon with tweetable captions compellingly
capturing the Dream.
Part B
The China Dream is an initiative to reimagine prosperity and reshape consumerism in China. To catalyse
sustainable habits in Chinas emerging consuming class, related values are being embedded in new social
norms of a Harmonious & Happy Dream (the literal Chinese translation). The initiative has two components:
to shape social norms through both aspirational visuals of how Chinese would like to live; and to introduce
local policies that guide sustainable consumer behaviour.
Technical sustainability jargon is replaced with the vocabulary of personal prosperity and cultural identity that
makes people feel good about themselves and being part of a community. In the China Dream, sustainability
is replaced with harmonious happy and complemented with words such as food safety and access to
more public space. Compelling stories of the China Dream are told and new norms are activated through
the power of public champions, social media advocates, and archetypes of heroes and villains, soap
opera storylines, corporate marketing campaigns, and other regionally-appropriate channels. Crucially, these
activities are being entrenched through development of support policies for Dream consumer behaviour in
the domains of food, transportation, energy, housing and more.
Source: (JUCCE 2013)

2. Facilitators and social infrastructure
Research shows that there is a gap between peoples attitudes and their actual behaviour. For example, in surveys
consumers repeatedly express their preference for healthy, local products but in reality global brands that tend to
be less sustainable sell better than their sustainable local alternatives. This could be for several reasons - including
price or advertising. This is known as the attitude-behaviour gap. Social infrastructure is a critical determinant
of consumer behaviour; Facilitators are the social infrastructure that help in translating positive attitudes to
concrete action. They serve as incentives to encourage a particular pattern of behaviour, or place constraints to
discourage unwanted outcomes. Following are key facilitators that policymakers may deploy towards sustainable
consumption.
Legal - such as laws and standards e.g. prohibiting the sale of bottled water in a town where the quality
of tap water is demonstrated to be safe for consumption. This would discourage commoditisation of
water and use of scarce resources for bottling.
Administrative e.g. a difficult process for acquiring building permits for construction around wetlands,
or a government agency that ensures that local farmers produce has priority points of sale in urbanising
areas.
Cultural such as promoting traditional architecture that is less energy intensive and uses healthier
materials.
Market such as preferential billing rates for households that use renewable energy sources.
Facilitators create an environment where sustainability options can develop. Examples include providing subsidies
for production of more sustainable products, rejecting advertising that misleads children into consumerism and
creating award systems that recognise beacons of sustainable lifestyles. Nudging consumers, as illustrated in the
box below, has also proven to be effective.

1 2 3 4 5 6 7 8 9 10 11 12 13 14
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Box 8:6 Nudging people towards sustainable lifestyles

An example of a subtle facilitator is the use of green nudges to guide people towards sustainable behaviour.
Recognising that there are usually obstacles to people adopting sustainable lifestyles, the behavioural
sciences have developed the concept of nudging as a strategy to lead individuals to make choices in the
collective interest, without being prescriptive or guilt-inducing at the behavioural level. Examples include the
following, demonstrating different strategies at play:
Using inertia to offer the most environmentally friendly option as the default choice. E.g. e-bills:
in the USA, some banks, energy suppliers and telephone operators now send bills in electronic
format by default. If clients want to receive them in hardcopy, they must specifically ask, and they
will be charged for this service.
Similarly, the city of Washington DC introduced a tax of 5 cents per plastic bag on January 1st,
2010. This measure probably contributed toward reducing the number of bags found in Potomac
river by 66% between the annual cleaning operation of 2009 and the 2010 operation;
Using peoples adherence to social norms. E.g. in an experiment on waste recycling in the town
of LaVerne in California, every day for four weeks, a note was placed on the door of 120 homes
informing the occupants of the number of their neighbours who participate in domestic waste
recycling and the quantity of recycled material that that represents. The impact was immediate: the
volume of recycled materials increased by 19%.
A similar strategy is used when placing a note in the bathroom of a hotel indicating the percentage
of clients who reused their towels instead of having them changed every day. In one finding, the
result was that 44.1% of clients reused their towels, as against 35.1% when the arbitrarily chosen
and deliberately high statistic (75%) was not communicated to the client;
Providing feedback to people. E.g. a display unit connected to a smart electricity meter installed
in private homes to give consumers a better real-time feedback of their energy consumption and
savings has been shown to lead to reductions in energy consumption.
Although, like awareness-raising, green nudges are not the most effective approach to sustainable lifestyles
they are valuable motivational procedures when used alongside existing instruments.
Source: (Oullier & Sauneron. 2011)

3. Sustainable infrastructure
If a consumer is inclined to lead a sustainable lifestyle but there are no sustainable products, the consumer
would have little other option but to consume unsustainably, or at best use the product responsibly - in a more
sustainable manner. Infrastructure refers to the hardware for sustainable lifestyles. Such infrastructure should
remove lock-ins. Providing a dense network of safe bicycle tracks and bicycle parking space in the city and
prioritising bus lanes over private car use would make sustainable mobility the easier option. The appropriate
infrastructure could also encourage and prioritise local community bonds over individualisation. For example,
granting licences for operating farmers markets in city centres and on strategic transit spots that lie on the way
between work and residential zones or providing tax incentives to local shops that host exchange or trading
of used goods. Housing development for example should be planned as hubs that integrate social facilities,
transportation options and communal utilities, thus requiring little resource intensity in their everyday use.

What is Choice Editing?
Choice editing has been defined as ...shifting the field of choice for mainstream consumers: cutting out
unnecessarily damaging products and getting real sustainable choices on the shelves (U.K Sustainable
Development Commission 2006).
It is a method of curtailing or even completely banning the availability of a consumer product or service which is
considered harmful or undesirable. It is not a new concept; only the terminology is new to some. Choice editing
has been practiced by governments for ages: examples include severe curbs and restrictions on availability of
drugs and narcotic substances, firearms and the like.
There are different forms of choice editing:
Banning or restricting availability of products or service: a classic case is the Ban the Bulb initiative
of the Australian Government which called for replacement of all incandescent bulbs by CFLs and
LEDs. Incandescent bulbs were not harmful per se, but less energy-efficient and the move should
reduce GHG emissions by 4 million tonnes. Other similar measures include the phase-out of leaded
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petrol and the ban on plastic carry bags, common to many countries in the world.
Choice editing on the basis of a component of a product: a typical example is the ban or restriction in
the use of paints which contain lead (commonly found in driers and pigments).
Choice editing on the basis of the manufacturing process: mercury cells in the manufacture of Caustic
Soda/Chlorine were phased out due to the potential hazards of mercury.
Politics and ideology may also dictate restriction or denial of choice
Choice editing can also be imposed on the basis of other factors, such as the supply chain: blood
diamonds, for example.
Depending on the nature of choice editing and the implementing body (government or private sector), choice
editing can be applied in one go or in stages. For example, the government could simply ban a product both
its local manufacture and import. Alternatively, it could ensure reduction in production and/or consumption
progressively- an example being the phasing out of ozone-depleting substances.
Role in Policy and Other Options:
Part B
In fact there is really no limit to the number of reasons for editing consumer choice.
When is choice editing used?

Choice editing is not the preferred method of channelling consumer demand with most commentators agreeing
that within reason, the consumer must have full freedom of choice. Governments prefer to facilitate the provision of
information to the consumer so that he/she can make an informed choice about what to buy. This has spawned a
number of initiatives such as Ecolabelling, which provides guidance on the environmental friendliness or otherwise
of many consumer products. Ecolabels are discussed further in the following section 8.3, Sustainable Products
and Product Information.
Box 8:7 Labels
Private or cooperative initiatives have resulted in such labels as the Forest Stewardship Council or the Marine
Stewardship Council labels, which attest to the environmental sustainability of products. Similarly, social labels
such as Fairtrade attest to the fairness of the supply chain while the Kimberly Process certification relates to
blood diamonds.
While the provision of information and persuasive measures can succeed to some extent, they often end up with
information overload for the consumer, who is faced with a multiplicity of labels such as environmental labels,
labels on animal welfare, human rights, workers rights, fair trade and so on, resulting in confusion (Lang 2007).
Deciding to Edit Choice: who decides?
Government: In a sense, choice editing was a feature of the Soviet-style command economies where not only
the product, but also the quality, manufacturing quantity and distribution were decided by the state. Today, the
state continues to play a pivotal role especially in matters concerning the impact of products and services on
public health and safety. The state has the mandate to enforce choice editing and the mandate may extend down
to municipal levels. The states influence on consumer choice is sometimes resented by special interest groups, as
witnessed by the outcries in certain countries to legalise marijuana or to resist any forms of controls on firearms.
Tools available to the state include a) legislation and b) fiscal measures such as taxation and subsidies. Other
policy measures, such as preferential public procurement may serve to bring down prices and stimulate demand
for sustainable products, but these cannot be termed editing.
Manufacturers: The manufacturing sector can also exercise choice editing. Increased awareness of Corporate
Social and Environmental Responsibility has led to many manufacturers voluntarily dropping unsustainable or
potentially harmful products from their portfolios and the planned obsolescence, which was widely practiced
in the 1950s is no longer as widespread a practice as it used to be. The greatest change has been in terms of
pay and working conditions of workers of sub-contractors, where the embarrassment of sweatshop working
conditions has often forced the principal to rapidly enforce change.
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Retailers: Perhaps more than manufacturers, retailers play a major role in deciding consumer choice, especially
in the more developed countries where supermarkets are the source of most consumer goods. Many of
the worlds largest retailers such as Walmart have their own rating system which penalises unsustainable
products, to the point where a product may not be found on retail shelves at all. More subtle measures could
include differential discounting or denying premium shelf space to less sustainable products. The situation is
vastly different in developing countries where Mum and Pop stores are the predominant retail outlets as their
motivating drivers are very different (Maniates 2010).
Problem areas with choice editing:
Choice editing is often contentious, sometimes involving issues of morals or ethics. Civil libertarians and
special interest groups often query the right of the state to interfere in freedom of choice and this can be
carried to extremes. Such resistance could have political repercussions, which is why governments prefer less
prescriptive methods, such as labelling programmes.
Choice editing at the retail level is practicable when implemented by giant retail chains such as Walmart and
Home Depot, but impractical for a small retailer to implement on his own. Even with the larger retail chains, a
degree of consumer suspicion persists: is a low rating by a supermarket chain really a way to squeeze extra
margins from the vendor?
The consumer in a globalised world, particularly where internet access has permeated, finds it simple to
bypass choice editing attempts. He/she can purchase from any number of virtual retailers who publicise their
products on the internet witness the number of pharmacies selling banned pharmaceutical substances
from anonymous manufacturers across borders. When governments use taxation as a measure of choice
editing, smuggling proliferates, such as with cigarettes. This not only defeats the purpose but deprives the
state of revenue.
Restrictions in Advertising
The proverb Build a better mousetrap and the world will beat a path to your door, attributed to Ralph Waldo
Emerson (1803-1882), has long fallen into disuse. It is now accepted that producing a better product is not
enough. It has to be advertised and promoted heavily if it is to succeed in the marketplace.
Advertising fulfils several positive functions:
It informs the consumer of a product its attributes, benefits, advantages and availability.
It provides justification for the consumer to buy a product in preference to another generic equivalent
or another alternative product which meets the same needs.
It can act as a driver for competition and greater innovation.
But advertising is a two-edged sword and can also carry negative connotations: it may create a need when
none exists, it may spur unnecessary and conspicuous consumption, it may create undesirable rifts between
the socio-economic haves and the have-nots and it can assist larger manufacturers in driving out smaller
ones who may not be able to afford the same level of media expenditure. It is these negative attributes which
could call for some form of restriction in advertising.
Truth in advertising:
There is no requirement in principle for the advertiser to be entirely truthful in the advertising and examples of
stretching the truth, semantic obfuscation and deliberate misinterpretation abound.
Box 8:8 The truth about orange drink
For exmple: A product, available in powder form, is widely publicised as an Orange Drink with the packaging
as well as publicity material containing illustrations of the fruit. Inspection of the label reveals not a hint of
natural orange; the product is 100% synthetic.
Consumers in developing countries are particularly susceptible to misleading advertisements. In some cases,
standards are evolved usually by an industry body or association which are far removed from reality,
allowing an advertiser to legitimately make claims which mislead the consumer. A typical example is the fuelefficiency figure for automobiles, which are based on unrealistic driving conditions that very few consumers are
likely to meet.
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In its crudest form, misleading advertising contains un-truths which are difficult, if not impossible, for an individual
consumer to disprove. A slightly more advanced form is making tall claims for products but with the advertisers
identity concealed web-based advertising and spam e-mailing are the usual vehicles. In yet more sophisticated
cases, the advertiser claims to have received an award or certification to world standards, carefully concealing
the fact that the awards can be bought for a small fee. This enables manufacturers to claim that their products are
environment-friendly or eco-products.
Box 8:9 The truth about washing machines
Misleading advertising can be found for any product or service but as consumers begin to pay greater heed to
the environmental and social impact of their purchases, deception and obfuscation have entered the sustainability
arena as well. Many products claim to be environment-friendly without any back-up or justification provided. A
variation is the claim of being environment friendly based on just one attribute.
Part B
For example: Washing machines are often advertised as being environment friendly based on just one
attribute energy efficiency in terms of watt-hours. Neither the water consumption nor the consumption of
detergents is considered.
Restrictions on Advertising:
Most countries place some form of restriction on advertising. Certain goods and services are completely prohibited
from being advertised (e.g. drugs and narcotics) while in other cases, advertisements must carry a statutory
warning (e.g. cigarettes). Cross-country examination reveals that such prohibitory
measures are generally taken on grounds of public health, safety and security.
Increasingly, countries are also prohibiting advertisements aimed at children. In the
USA, the Federal Trade Commission has played an exemplary role in protecting
consumers from gross violations in an environment where advertisers have become
masters in semantic obfuscation.
The advertising industry has long resisted the imposition of any external code of conduct
and instead prefers self-regulation and a voluntary code. The International Chamber Peerayot Sidonrusmee
of Commerce has evolved a code and the resultant self-regulatory system has been
adopted in 35 countries. In the EU, the European Advertising Standards Alliance fulfils the self-regulatory role.
India has the Advertising Standards Council of India to monitor and enforce its own guidelines. The Chinese
Responsible Marketing Code was endorsed by the Chinese advertising industry in April 2011.
In summation, if the intention is to channel consumer demand to more sustainable goods and services, neither
choice editing nor restrictions on advertising or even a combination of the two will be sufficient as a standalone action. Accompanying these should be vibrant and well-conceived ecolabelling and consumer information
and rating schemes, initiatives to increase public awareness, incentives and disincentives for consumers and
manufacturers alike, all integrated into a holistic strategy led by governments but including all relevant stakeholders.
8.3 Sustainable Products and Product Information

Access to sustainable products and reliable product information is critical in the transition towards sustainable
lifestyles. Products are the link between production and consumption, connecting consumers to complex supply
chains that are becoming increasingly spread across the globe. The path towards SCP requires measuring and
managing impacts from products based on their life cycle (UNEP 2013). Such product sustainability information
identifies the critical areas for action, can increase producer accountability, encourage producers of lower
performing products to improve and helps consumers make more informed decisions, driving the market for more
sustainable products.
A sustainable product should be economically, socially and environmentally sustainable. Social concerns of
production such as labour conditions, minimum wage and child labour have received significant global attention
in recent years and are relatively more well known. This section however, will predominantly focus on the
environmental pillar of sustainable products and will discuss environmentally sustainable products, sustainable
product information and reducing environmental impact through changing patterns of use.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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What are sustainable products?

UNEP/ Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production (UNEP 2010)
defines a sustainable product as a product that incorporates environmental and social factors and minimises
its impact throughout the life cycle, throughout the supply chain and with respect to the socio-economic
surroundings. Another broad definition of a sustainable product identifies it as an item or service that
minimises its impact on the environment at each phase of its life cycle (NSW Government 2011). These
definitions consider the triple bottom line of sustainable development and recognise the need for a lifecycle
perspective to minimise environmental impact and improve resource efficiency. Figure 8.6 provides one
possible framework for sustainable products, from the Lowell Center for Sustainable Production, highlighting
not just the environmental component, but the requirements for overall sustainability.
Figure 8:6 Lowell Center framework for sustainable products
Source: (Edwards 2009)

Product sustainability must consider the complete lifecycle and value chain of a product. In an increasingly
global world, products are often produced across numerous continents and pass through many stakeholders
across the value chain. In designing and assessing products it is critical that the life cycle approach be taken,
ensuing that burden shifting does not take place and that the overall outcome is reduced environmental
impact. Chapter 2.2 provides more information on Life Cycle Thinking and Life Cycle Assessment.
Reducing the environmental impact and improving the sustainability of products is a challenging endeavor
which cuts across industry, academia, government and the greater community. It will generally engage many
of the strategies discussed in Chapter 7, including techniques such as eco-innovation, cleaner production,
resource efficiency, design for sustainability, eco-design and life cycle and value chain management.
Product sustainability information

Product sustainability information provides an important link between consumption and production and can
play a key role in the transition towards SCP. Product sustainability information systems make the sustainability
information about the product, service or facility available to different users. This information can take many
forms including labels or logos, written claims or declarations or even corporate reporting. It can be mandatory
or voluntary, single attribute or life-cycle based, apply to single sector or multiple sectors and have varying
degrees of independence. Product sustainability information may provide information only or can be a relative
rating or leadership ranking (UNEP 2013). This information can be used by governments in developing,
measuring and monitoring sustainability policies. Businesses can use the information to manage supply chains
and adopt best practices while final consumers, both public and individual, can base their purchasing choices
on such information.
Product sustainability information can take many different forms and continues to emerge from different
countries, sectors and organisations. Some forms of sustainability information may include:
Ecolabels, further elaborated below.
Corporate Social Responsibility (CSR) reporting (e.g. Global Reporting Index)
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Industry roundtables & initiatives (e.g. Sustainable Apparel Coalition Higg Index 1.0)
Sustainable finance programs (e.g. Equator Principles from the IFC)
Sustainable information platforms (e.g. websites such as Goodguide)
Box 8:10 Ecolabels
The information communicated by ecolabels should be accurate and verifiable. The Global Ecolabelling
Network (2013) states that in contrast to green symbols, or claim statements developed by manufacturers
and service providers, the most credible labels are based on life cycle considerations; they are awarded by
an impartial third-party in relation to certain products or services that are independently determined to meet
transparent environmental leadership criteria. There are several different types of labels as recognised by
ISO described below.
Part B
One of the more well known product sustainability information systems is ecolabelling. Typically appearing
on the product, ecolabels are voluntary, participatory, market-based and transparent economic tools that aim
to decrease environmental impacts and improve resource efficiency of products while enabling consumers
to make informed decisions based on products environmental credentials (UNEP 2013). Ecolabel programs
can offer the opportunity to tackle social and environmental challenges across the supply chain, while also
supporting multiple areas of public policy such as climate change, energy and water efficiency and waste
management.
Voluntary Environmental Performance Labelling -- ISO Definitions

Label
Definition
TYPE I Environmental Labels

ISO 14024
A voluntary, multiple-criteria based, third party

program that awards a license that authorises the
use of environmental labels on products indicating
overall environmental preferability of a product within
a particular product category based on life cycle
considerations.
TYPE II Self Declared Environmental Labels

ISO 14021
Informative environmental self-declaration claims.
TYPE III Environmental Declarations

ISO 14025
Voluntary programs that provide quantified

environmental data of a product, under pre-set
categories of parameters set by a qualified third
party and based on life cycle assessment, and
verified by that or another qualified third party. For
example Environmental Product Declarations.
Testing against such criteria makes a product certified by an eco-label such as the European Union Ecolabel
Flower (Type I), EcoMark of Japan (Type II), Green Seal of the USA (Type I) and the ABNT Ecolabel (Green
Label) of Brazil (Type I). In recent years, global ecolabel entities are working hard to develop multilateral
accreditation of national ecolabels to reduce duplicating ecolabelling work of individual economies.
Source: (GEN 2013)
Ecolabels aim to provide a market advantage for products and service. They encourage demand for and supply of
environmentally preferable products and services. By encouraging consumers to preference these more sustainable
products, ecolabels aim to displace less environmentally friendly products from the market, or force them to
improve their environmental performance to regain market share. UNEP (2013) notes that the environmental
benefits begin to accumulate only when the market forces begin to act, and significant purchasing activity moves
toward those environmentally preferable products. Simply establishing an ecolabelling program does not reduce
environmental stress, it is necessary for the purchasing practices within the market to also change.
Governments can play a key role in introducing and establishing successful ecolabelling programs. UNEP studies
(2013) have found that ecolabels operate best where there is sufficient regulatory and non-regulatory pressure
for environmental improvement. Factors which can positively influence the success of such a program include
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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government policy, consumer awareness, institutional infrastructure, a culture of transparency, adequate

quality controls, market trust and business maturity. Governments also have the opportunity to drive and
support ecolabelling programs through well thought out sustainable public procurement strategies, which can
correspond to a significant percentage of national purchasing (further discussed in Chapter 10). By showing
that the government prioritises green products, consumers may be encouraged to adopt the same attitude.
Due to the complexity of developing successful ecolabel programs, the process can be lengthy, difficult and
costly and often relies on government funding during establishment.
Box 8:11 Ecolabels in developing countries
Successful domestic and regional ecolabelling programs are emerging in many developing countries across the
world. Developing countries often face a number of additional challenge such as having a higher percentage of
SMEs, lax regulatory frameworks and weak non regulatory pressures. Despite lacking a number of conditions
generally considered necessary for successful ecolabel programs, a number of developing countries have
started putting robust ecolabel programs in place, as part of greater environmental strategies. Such programs
are helping to address national sustainable development strategies and environmental priorities such as
climate change, while also increasing the international competitiveness of their countries products. Studies
have found that voluntary ecolabel programs in developing countries can improve compliance with statutory
requirements, acting as a supporting policy to improve environmental performance.
Whether it be ecolabels or some other form of product sustainability information, three key elements should be
considered when developing principles and building a system; quantification, assessment and communication.
Successful ecolabel programs require multistakeholder engagement throughout the process. A scientific
foundation, such as life cycle based thinking can ensure a credible and comparable assessment process.
Lastly a strong focus on capacity building and awareness raising is needed for program success. Ecolabel
rollouts needs to be supported with a comprehensive dissemination of information, to both consumers as well
as suppliers to drive demand and encourage other companies to join.
Sustainable use of products

Opportunities exist to reduce the environmental impact of existing products by changing the way in which they
are used. Two such opportunities which are gaining momentum are through product service system (PSS) and
the growing field of collaborative consumption.
In relation to sustainable product design, PSS is an approach that has the potential to lessen consumption
or consumerism. With PSS, markets are created for utilities as opposed to products. The premise behind
this shift is that consumers seek the service of a product and not the product itself. Selling products tends to
consume more material and energy resources through its production, maintenance and the number of units
sold; whereas, utilities provide a service where a few own and maintain a product that will be used to serve
clients. Essentially, PSS comprises of a system of products and services that serve a particular network, and
has the potential of lessening the impact of a product and service throughout its lifecycle.
The increasing shared transportation systems across the globe, such as carshare and bikeshare programs are
an excellent example of successful PSS. Car share programs now exist in over 1,100 cities, from 26 countries
across the world (Shaheen & Cohen 2012). Bikeshare programs exist in 500 cities, across 49 countries,
with an estimated global fleet over over 500,000 bicycles (Earth Policy Institute 2013). These programs
have undoubtedly resulted in significant reductions in the number of new bicycles and car purchased by
their clients, reducing environmental stress from consumption. While this concept of PSS is not new, more
innovations will be needed to expand the impact of PSS in businesses. In PSS, consumers choice is driven
by both environmental and economic interests, and consumer demands are competitively satisfied in a more
environmentally sustainable manner.
A concept related to PSS is collaborative consumption (CC) which can be likened to old market behaviours
of bartering, sharing, lending and swapping, but is done through network technologies. Collaborative
Consumption is disrupting outdated modes of business and reinventing not just what we consume but how
we consume (Collaborative Consumption Hub n.d.). The acceptance of this behaviour by consumers is driven
by a number of factors and governed by a set of principles, detailed in the figure below. Examples of growing
CC trends such as AirBnB (an online platform for sharing accommodation across 34,000 cities around the
globe) and Zipcar (a global carsharing program operating in over 50 cities across North America, the UK and
Spain) provide significant scope for reduced consumption.
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Figure 8:7 Drivers, principles and systems of collaborative consumption
Part B
Source: (Collaborative Consumption Hub n.d.)

In light of lifecycle thinking and triple bottom line conditions at the local level, policy opportunities exist in each
phase of the product or service and in creating an enabling environment for the promotion of sustainable products,
product sustainability information and improved use of products.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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Case Study: The European Union Ecolabel

In 1978 Germany introduced Blue Angel, the first national ecolabelling scheme in the world, as a means of
informing consumers of the environmental friendly aspects of products. National schemes around the world
followed. By 1987 the European Union (EU) introduced the idea of a supranational ecolabel during the first
European Year for the Environment. In 1992 the regulation on the EU Ecolabel entered into force.
The EU Ecolabel, also called the EU-Flower for its shape, is a voluntary, market-based tool that encourages
businesses to produce - and consumers to purchase - products with lower environmental impacts. While
in 1992 the EU Ecolabel was more of a stand-alone instrument in the field of product-related environmental
policy and promotion of sustainable consumption patterns, the innovative and multi-dimensional character of
ecolabelling as a policy instrument made the EU Ecolabel a catalyst for several important policies on climate
change, energy efficiency, health, hazardous substances, use of natural resources, waste, recycling and ecodesign. Today the EU-Flower has been awarded to more than 22,000 products in 22 product groups. Small
and medium-sized enterprises from developing countries pay reduced application and licence fees.
A survey of over 26,500 randomly selected citizens conducted in April 2009 found that 55 per cent of EU
citizens claimed that, when buying or using products, they were generally fully aware or knew about the
most significant impacts of these products on the environment. Approximately half of EU citizens said that
ecolabelling played an important role in their purchasing decisions (Gallup Organisation, 2009).
Source: (UNEP 2012)
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Further Reading 8
Task Force on Sustainable Lifestyles is the final report of the Marrakech Task Force
on Sustainable Lifestyles. It presents lessons from projects around the world aimed at
promoting sustainable lifestyles. It also highlights resources that stakeholders will find
useful in designing and implementing sustainable consumption projects.
Part B
Marrakesh Process Secretariat (United Nations Environment Programme and United

Nations Department of Economic and Social Affairs) 2010, Paving the Way to Sustainable
Consumption and Production Background paper for the Commission on Sustainable
Development, Eighteenth Session, CSD18/2010/BP4.
Youthxchange.net is an online platform designed to help trainers and individuals to

understand and communicate on sustainable lifestyles. There are the over 130 examples
of organisations, innovative ideas, funny stories and motivated people active in making
day to day life more sustainable.
http://www.youthxchange.net/main/home.asp
Consumer Scapegoatism and Limits to Green Consumerism, commissioned as

a framing paper for the launch event of the Global Research Forum on Sustainable
Consumption and Production, this paper examines some of the easy misconceptions
about sustainable consumption. It analyses some of the main challenges of achieving
sustainable consumption by focusing only on individual consumer behaviour, and makes
recommendations for policymakers to develop more effective ways of mainstreaming
sustainable consumption.
Akenji, L 2012, Consumer Scapegoatism and Limits to Green Consumerism, Proceedings
of the Global Research Forum on Sustainable Consumption and Production Workshop.
Rio de Janeiro, Available from: < http://grfscp.files.wordpress.com/2012/05/grf-2012-rioakenji.pdf>. [12 September 2012].
Redefining Ecolabels to improve sustainability and trade in developing countries
provides an excellent discussion on product sustainability information and ecolabels, and
provides lessons learned and case studies from a UNEP project considering ecolabels
as an increased opportunity for trade for developing countries. It provides an interesting
discussion on the role of eco labels in global trade and the possible opportunities and
barriers that people perceive.
United Nations Environment Programme 2013, Redefining EcoLabels to improve
sustainability and trade in developing countries, UNEP, Paris.
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Strategic Investments Towards Resource

Efficient Cities
Part B
N
W
E
S
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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Strategic Investments Towards Resource

Efficient Cities
Key Points
The world is becoming increasingly urbanised, with most notable
changes occurring in developing countries.
Urban development needs to address uncertainties and vulnerabilities
such as climate change, to develop resilient cities.
A holistic view, which considers all resource flows within a city, helps
in developing sustainable, resource-efficient cities.
Key opportunities for sustainable urban development relate to
buildings and construction, urban transport, water and waste
management.
Sustainable infrastructure decisions today, can lock cities into a lowcarbon, resource-efficient future.
Home to over half of the worlds population, with this percentage set to rise, cities offer an opportunity for
significant gains in global sustainability. Rapid urbanisation, particularly in developing countries presents
a number of economic, social and environmental challenges. Cities in developing countries face the triple
challenge of providing basic services to the urban poor and, contemporarily, reducing resource consumption
in weathly areas and planning infrastructure and management systems for the growing population, all within
the same urban context. Cities can offer a gateway for a sustainable future. This chapter considers the
importance of sustainable urban form, the challenges and opportunities from rapid urbanisation and focuses
on the specific opportunities offered by sustainable buildings, transport, water and waste management.
Sustainable cities
Why is urbanisation important?
Urbanisation is a global phenomenon. In 1800, only 8
per cent of humanity lived in cities. Today the number
exceeds 50 per cent and UN projections estimate that
by 2050 cities will account for as much as 70 per cent
of the worlds population. Cities are widely recognised
as the aggregate of convenience because they provide
economies of scale, serve as engines of economic
growth and social progress, and promise employment,
social welfare and dignified living. They can guarantee
better security and solidarity, support improved
lifestyles, and foster education, culture, leisure and
pleasure.
Kibae Park
Cities are known to be fertile ground for the production of wealth; according to McKinsey Global Institute (2011),
today there are 600 urban centres that generate about 60 per cent of the global Gross Domestic Product
(GDP). Urbanisation has allowed many countries to achieve sustained economic growth and rapid social
development. Densely populated cities provide the economies of scale that can make them more productive
and help them create more livelihood opportunities. Well planned cities can provide an ideal platform for the
distribution of wealth, especially among the section of society for whom the basic needs and rights remain
elusive.
What are the present urbanisation challenges?

Developing countries across the world are experiencing unprecedented rates of rapid urbanisation. In these
areas birth rates are often high and there is mass exodus of rural population hoping to escape hunger, poverty
and insecurity. Cities in the developing world, at the same time, are becoming concentrations of people,
economic growth, development and poverty.
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Global population continues to grow and is becoming increasingly urban. While the world population quadrupled
in the 20th Century, the urban population increased by 16 times during the same period of time. According to the
Worldwatch Institute (2012), developing countries are likely to add approximately 2.45 billion people to their cities
by 2050, while the industrial world is due to add just 170 million. These forecasts predict the sprouting of a new
city of more than a million inhabitants every week over the next few decades!
Figure 9:1 Rural and Urban population by major regions, 1950, 2011 and 2050 (billions)
Part B
Source: (UNDESA 2013)

The onslaught of people in these urban centres puts
immense pressure on existing infrastructure and systems,
such as transport, energy, water, healthcare, and security.
Cities occupy 3 per cent of the planets land surface, but
use 75 per cent of resources, far exceeding the earths
capacity to regenerate itself and absorb the waste
generated (UNESCAP, UN ECLAC & UDL EI CU 2011).
Cities account for more than two-thirds of all energy
used and greenhouse gas emissions, and are particularly
vulnerable to the increasing effects of climate change
and natural disasters. Cities must adapt and grow to
accommodate the unprecedented increase in urban
population which, along with unsustainable consumption patterns, has led to very high growth in resource use
and waste generation, and degradation of the planets natural environment.
Transforming urban challenges into opportunities

Cities differ in their initial carbon endowments due to climate, population and urban form, transport and built
infrastructure, and economic structure. The main role of cities is to provide economic opportunities and better
quality of life to its citizens. Cities that opt for low carbon transformation are also likely to experience economic
and social gain as they will maximise low-carbon energy sources, enhance efficiency in delivering urban services
and thus become more efficient, competitive, liveable and sustainable. There can be a strong alignment between
low-carbon growth and sustainable urban development objectives, as outlined in Table 9.1.
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Table 9.1 Alignment between low-carbon growth and sustainable urban development
objectives
Source: (Baeumler, Ijjasz-Vaquez & Mehndiratta 2012)

Cities have an opportunity to respond proactively to the future in terms of resilience to declining fossil fuel
supplies and rising global temperatures. The future lies in an alternative mode of development that is not
only carbon-frugal, but also economically and socially inclusive by keeping the focus on the well-being of the
inhabitants.
As the past determined the present, so the present will determine the future
Prior to the industrial revolution, cities around the globe operated on an elaborate economic and ecological
system for their sustenance. The hinterland supplied the city with its needs for food, raw material and other
inputs and the city assured the continuous productivity of the hinterland by returning appropriate amounts of
organic waste that fertilised the cropland. The World Future Council refers to such traditional settlement as
Agropolis.
The industrial revolution ushered dramatic alterations in the symbiotic relationship between a city and its
hinterland. Faster modes of transport made it easier to supply food, raw materials and manufactured products
from distant locations by road, rail, water and air, thus making cities important trade centres with easy access
to resources far beyond the hinterland. Since the key functions of the cities are heavily dependent on petroleum
and other fossil fuels, the World Future Council refers to this urban settlement as Petropolis.
Though urbanisation has been relatively slow in developing countries, drastic changes have been witnessed
in the last couple of decades. There is rapid economic development and changes in lifestyles, predominantly
fuelled by fossil fuel resources. Increases in land prices in the heart of the city has forced cities to expand
horizontally, increasing the distances to commute, and entailing more travel, more fuel consumption, more air
pollution and greater inefficiencies in infrastructure and service provision. There is however, now realisation that
fossil fuel supplies on which modern cities depend are finite. Moreover, the increasing reliance on fossil fuels is
economically, geopolitically and environmentally unsustainable.
Cities need to develop resilience to uncertainty and vulnerabilities, in particular climate change. The costs of
adapting to climate change will be colossal. The World Bank estimates that natural disaster-related recovery
and rebuilding will cost between 2 and 15 per cent of an exposed countrys annual GDP. The world may
need to spend more than 200 billion USD a year on measures such as building flood defences and rebuilding
infrastructure affected by climate change. Coastal cities and island states will be particularly vulnerable and
large urban areas may become uninhabitable. Taking action today, to mitigate and prepare for such changes
is crucial in developing long-term, sustainable cities and can reduce the exposure to huge costs in the future.
Cities hold the key to global sustainability

Solutions to reduce the ecological impacts of cities already exist. Cities have to discard their linear
metabolism and make the cradle to grave model redundant. New forms of urban planning such as the
cradle to cradle model have to be contemplated. Careful analysis of all incoming and outgoing flows can
help to better understand how the resources such as raw materials, food, energy and water are consumed
and transformed into waste. Instead of considering the transport and disposal of waste towards peripheral
areas subservient to the function of the city, production chains have to be organised such that waste is
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perceived as a resource that can be recycled, upgraded and transformed within an interconnected network into
new products.
Figure 9:2 Cities with linear metabolism versus cities with circular metabolism
Part B
A key component of the sustainable city will be the circular metabolism which discards the take-make-dispose
thinking and follows the biomimetic approach, reflecting the notion that in nature all of the interdependencies feed
into and benefit from one another (Girardet & Mendonca 2009). Natures best ideas can be studied, then imitated
in designs and processes to solve urban problems. Drastic changes have to be made in the urban metabolism
in order to reduce the pressure on natural resources, minimise the impact on the environment and provide better
value to the society in the form of higher economic benefits, employment opportunities, delivery of goods and
services, and improved quality of life.
Source: (Girardet & Mendona 2009)

Technlogical innovations for radical resource productivity will undoubtedly be a catalyst for change. In order to
avoid potential rebound effects, smart actions towards resource efficiency should be backed up by integrated
instruments encompassing fiscal, technology as well as behavioural changes in consumers. Large scale
deployment of proven low-carbon technologies will result in several-fold improvement in the resource efficiency
of buildings, factories, transporation and electricity generation, transmission and distribution systems. Smart
development initiatives will attract more investments in new technologies and create green jobs. Innovations in the
fields of information technology and digital networks are contributing to improved urban connectivity and smart
city solutions. For example, the difficulties faced by the electric utilities in expanding grid infrastructure and coping
with the increasing demand during peak periods is being addressed through the introduction of smart grids, virtual
power plants, distributed generation and real-time electricity pricing. Similarly, a connected city is today capable
of communicating with citizens, monitoring the urban traffic, managing vehicle fleets, reducing congestion and
enhancing carbon-free travel.
Box 9:1 Solutions that can put cities into the path of sustainability
As suggested by William McDounough, examples of solutions for cities to become sustainable include:
Buildings that, like trees, produce more energy than they consume and purify their own waste
water.
Factories that produce effluents that are drinking water.
Products that, when their useful life is over do not become useless waste but can be tossed on
the ground to decompose and become food for plants and animals and nutrients for the soil; or
alternatively, that can return to the industrial cycle as high quality raw materials for new products.
Billions of dollars worth of extra materials for our use each year.
Transportation which improves the quality of life while delivering goods and services.
A world of abundance, not one of limits, pollution and waste.
Source: (Webster & Johnson 2010)
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Sector-specific approaches
Infrastructure serves as the backbone of urban development. Lack of infrastructure can have direct and
immediate impacts on urban economic growth and prosperity. Multilateral Development Banks are increasingly
aware that making the right investments now can lock in more environmentally sound, low-carbon and climateresilient infrastructure that will be around for many decades to come. They committed over USD 9.5 billion in
2011 for better land-use planning, clean energy supply, energy efficient buildings, public and non-motorised
transport, improved water supply, waste management and sanitation, and measures to enhance climate
resilience.
The infrastructure challenge is a dual one. It requires new resource efficient hardware solutions, that is the creation
of new, or the retrofitting of existing physical assets with an integrated approach, but also better software,
that is institutions and citizenship prepared to manage and use infrastructure services more efficiently. The
infrastructure opportunities arising from the crucial sectors of sustainable buildings and construction, sustainable
urban transportation, sustainable water management and waste management, are further explored below.
Sustainable buildings and construction
Buildings are estimated to account for more than a third of the worlds resources in construction, 40 percent of
global energy (including embodied energy), 12 percent of fresh water use, generate 40 percent of greenhouse
gas (GHG) emissions and make up 40 percent of waste to landfill. Hence sustainable buildings and energy
refurbishments in buildings hold enormous potential for energy saving and reduction of greenhouse gas
emissions. Almost two-thirds to four-fifths of energy is used directly during the operation of the building. The
remaining accounting for the indirect form of energy such as the energy needed to manufacture building
materials, transport raw materials to the construction site, and construction and demolition of the building.
Green buildings have the potential to save money as well as carbon emissions by adopting passive design
features and through effective insulation, glazing, water heating, air conditioning, lighting, and other energyefficiency measures. The Intergovernmental Panel on Climate Change (IPCC 2007) estimated in 2007 that
around 30 percent of the baseline CO2 emissions in buildings projected for 2020 could be avoided costeffectively by the use of various technological options. This would result in a number of co-benefits such as
decreased air pollution, better health and reduced mortality, improved social welfare, improved affordability of
housing and energy security.
The global greenhouse gas abatement cost curve for the building sector developed by McKinsey (2009) shows
that changes in building design and construction could offset up to 6 billion tons of carbon emissions annually
through measures with a zero or negative net life-cycle cost.
Lewis Akenji
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Figure 9:3 Global GHG abatement curve for the building sector (scenario perspective
2030)
Part B
Source: (McKinsey 2009)

According to UNEP, greening of buildings can be part of the strategies to improve access to basic services, reduce
vulnerability, and contribute to better living conditions of the poor residing in informal settlements or overcrowded
housing estates that are associated with the lack of access to electricity, fresh water, health-care and effective
waste management.
Box 9:2 Sustainable buidling design strategy
Thanks to the integration of design features that are site-specific and well suited to the local climate, and
the adoption of innovative and environment-friendly technologies and durable materials with high recyclable
content, buildings have the potential to become more affordable and sustainable by cutting down the energy/
water use and cost by over 50 percent as compared to conventional buildings. There are two complementary
approaches to consider for green buildings:
Adoption of nature-driven technology (solar/wind protection, daylight, thermal envelope, renewable
resources, reuse and air quality control).
Adoption of technology-driven strategy (site selection, building materials, heating, cooling, recycling,
HVAC control, etc.).
The process of green building is distinguishable from normal conventional practices because it emphasises
the need for close collaboration of all concerned. Inputs are obtained from a wide range of parties that
include the project team, the owner and users, the community and other stakeholders. They work together
to identify sustainable design strategies and options prior to the launch of the schematic design phase. A
collaborative multi stakeholder approach should be used, to ensure the development of practical and useful
building specifications and designs.
Source: (Mohanty 2012)
The World Business Council for Sustainable Development reports that despite the increasing knowledge and
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understanding about green buildings, key decision makers still overestimate the cost. A survey of 1,400 people
found that the average guess for the additional cost of building green was 17 percent, when the actual amount
is closer to 5 percent. A 2003 report by the U.S. Green Building Council put the increase at as little as 2 percent.
Box 9.3. Eco-village of Adelaide: a new form of urban development
Consisting of 27 dwellings and community facilities (e.g. library, laundry, interpretive centre) and constructed
in phases over 7 years, Christie Walk in Central Adelaide was designed to be a catalyst for climate-change
resilient and sustainable urban development. This urban eco-village was conceived and developed by a large
community of activists, experts, citizens and residents. Christie Walk comprises four 2 and 3 storey straw
bale houses, four 3 storey townhouses, a 3 storey building with 6 apartments, and a 5 storey building with 13
apartments and community facilities. The deep-soil roof gardens irrigated with storm water provide a multitude
of benefits: improved air quality; alleviation of urban heat island effects; reduced energy use and climate
emissions; beautification of the cityscape; and employment creation. Studies of its sustainability outcomes have
documented 50-60% reductions of energy use and CO2 emissions against regional averages.
Source: (WWF 2012)
Urban authorities have the opportunity to promote change through developing high energy-efficiency building
energy codes and standards and adopting suitable compliance mechanisms. They have the potential to play a
key role, at the local level, in creating synergies among all stakeholders in the building sector. Building standards
should be appropriate to the local climatic conditions, focus on affordability and take into consideration the type
of building and activity. Transformation of the building sector would require not only availability of appropriate
building materials, equipment and systems but also a large workforce with the skill necessary to construct
sustainable buildings using holistic and integrated design approaches.
Sustainable urban transportation

Transport systems form the lifeline of economic and social development of cities. By connecting urban centres
to the bioregion and the rest of the country, they facilitate economic, social and cultural exchanges.
As cities grow, there is increasing demand for travel and transportation of goods. Access to mobility options
is unequally distributed across the world. It is more pronounced in developing countries where the urban poor
pay heavily in time, money and health for their daily basic transport. Due to the lack of good and adequate
public transportation systems, urbanites with growing income are opting for private motorisation, especially in
rapidly expanding cities. Beijings vehicle ownership per 1,000 people rapidly increased from 9 in 1980 to 171
in 2009.
Transportation poses a number of challenges for cities including infrastructure costs, dependency on fossil
fuels, traffic congestion, loss of productivity, air and noise pollution, health and safety and greenhouse gas
emissions. Urban roadway congestion is threatening the long-term economic growth of cities due to wasted
energy and time. Shanghai is reported to lose 10 percent of its GDP due to traffic congestion. Emissions from
transport in urban areas are responsible for 70-90% of air pollution, making it the largest source in most cities.
Pollution costs more than 5% of GDP in many developing countries.
Lewis Akenji
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The traditional approach of solving traffic congestion by increasing the capacity of the road network is neither
economically productive nor equitable. There is a need for a paradigm shift that calls for cities built for people
rather than for cars and that favour public transportation over flyovers and highways. The provision of walking
and cycling infrastructure is amongst the least expensive elements in changing land use and transport patterns
(UNEP 2010). A 1% shift in distance undertaken by car to a non-motorised transport mode reduces energy use
and pollution emissions by 2-4%.
Both developed and developing cities need to adapt solutions that respond to the rising travel demand and the
consequences of increasing vehicular traffic on urban transport efficiency. Recent IEA (2013) studies conclude
that an avoid, shift and improve approach is needed to ensure that the global temperature does not rise beyond
2C. While the vehicle and fuel technology improvements are likely to contribute significantly to the reduction of
emissions in the transport sector, one cannot underestimate the importance of reducing overall motorised travel
and shifting private motorised travel to more efficient modes.
Part B
The sustainability of any city today depends very much on how it can address the various transportation-related
economic, social and environmental issues, and find ways to move people and goods most efficiently in an
energy, budget, time and space constrained world. Solutions may be explored that are low-energy and lowcarbon intensive and yet can cater to the needs of a modern society by emphasising the quality of life.
Table 9.2 Avoid, shift and improve: objectives and examples of policy responses
Approach
Objectives
Policies
Avoid
Reduce trip length
-High-density, mixed land-use development (i.e. work/housing/

leisure)
-Regional urban planning guidelines
-Subsidies/tax incentives for low-carbon transport city design/
planning
Reduce the need or -Information tools to raise awareness of real travel costs
desire to travel
-Mobility management and marketing (e.g. IT-based communications)
-Promotion of car-pooling
-Freight logistics
-Parking standards and fees/levies
Shift
Shift passenger travel

to public transport
and non-motorised
transport
-Integrated public transit and land-use planning

-Improved bus routes and services
-Parking restrictions
-Pricing strategies (e.g. congestion charges, vehicle quotas/bidding
system for plates, and fuel/vehicle taxes)
-Traffic restrictions and travel bans in city centres
-Road space allocation: dedicated lanes for buses, BRT and
bicycles, more sidewalks, crossings and overpasses for pedestrians
-Congestion and road charges (e.g. roadway tolls)
Shift freight transport - Standards for size and weight of vehicles authorised on roads
from trucks to rail and - Logistics management technology
water transport
Improve
Reduce energy use -Vehicle standards (e.g. fuel-economy or emission regulations)

and emissions
-Speed limits
-Planning of low-carbon electricity generation and smart grids for
electric vehicle charging stations
-Eco-driving
Improve fuel and -Vehicle feedback instruments

vehicle technologies -Fiscal incentives for fuel-efficient / lower-carbon vehicles
-Subsidies for alternative fuels
-Vehicle fuel-economy / environmental performance labelling
Source: (IEA 2013)
Walkable and bikeable cities have numerous benefits, as shown in Figure 9.5. The costs of shifting travel from
automobiles to cycling and walking are estimated to be less than one quarter of the benefits in terms of human
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health, reduced air pollution, noise from road traffic and reduced parking costs. In cities with a high share of
public transport, walking and cycling, the burden of the cost of transport on the community is much lower. For
example, the cost of transport represents over 12 percent of the local GDP in Houston or Sydney, but only 6
percent in Tokyo or Hong Kong.
Figure 9:4 Cycle of walkable and bikeable cities
Source: (UNEP 2010)

Box 9:4 Sustainable mobility in Argentina
Buenos Aires Plan for Sustainable Mobility is improving transport systems through an integrated, multifaceted
approach. This includes developing BRT lines on several key routes, which have led to reductions in commute
times from 10-25%, and up to 65% in some cases. To reduce carbon emissions they have introduced a number
or hybrid vehicles and articulated buses into the transport system.
Additionally they are aiming to increase the number of people who chose to cycle, by building an additional
100km of bicycle paths and increasing bicycle parking. They plan to open a public bicycle rental scheme soon,
and have launched a subsided bicycle loan scheme for the 120,000 municipality employees. They hope that
these measures will increase the number of cyclists by six fold.
In recent years, many new BRT systems have been built in developing countries including Guangzhou (China),
Lima (Peru), Leon and Mexico City (Mexico), Jakarta (Indonesia), Tehran (Iran), Johannesburg (South Africa) - the
first in Africa, and Ahmedabad (India) - the first in India.
Source: (IRP/UNEP 2013)
Water
Water is essential for domestic, commercial and industrial uses, as well as the maintenance and enhancement
of the urban environment. All major urban settlements have strategically been located to have access to
adequate water resources. However, as local water supplies became contaminated due to the lack of pollution
control systems and technologies, cities started depending on importing pristine water from remote sources to
meet the potable water needs of the population. Earlier both water and energy were abundant and inexpensive,
hence infrastructure was designed to achieve economies of scale in the form of a centralised water treatment
and distribution system aimed at meeting the demand instead of managing consumption, thus resulting in
increased water use.
The situation is very different today. With the rise in population and lifestyle changes, water is becoming
increasingly scarce. Effective and efficient management of water resources is essential as network and water
management services have become the most onerous infrastructure investment and recurring costs for most
municipalities. Due to limited water supplies and expensive energy, the focus has now shifted to minimising
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energy use and managing water demand to ensure sufficient supply.

Water management systems were historically implemented sequentially as specific needs were identified and
financial resources were mobilised. With the passage of time, cities faced increasing pressure to manage storm
water to prevent flooding and environmental damage, and collect and manage wastewater effectively. As a result,
systems for handling drinking water, storm water, and wastewater were often developed and managed separately.
There is now increasing understanding that multiple benefits can be accrued by integrating these functions into a
single system.
Part B
Many state-owned water utilities are unable to recover the capital investment for increasing capacity and the
operating expenses from the revenue generated from water sold, due to irrational tariffs and leakage in the water
network. Water loss, also referred to as non-revenue water (NRW) refers to the total amount of water lost through
leakage in water distribution network. Compared with cities like Berlin (3 percent losses) and Singapore (2.5
percent losses) that have managed to develop and maintain very efficient water distribution systems, the share
of NRM in some cities of developing countries can be as high as 50 percent. Though the estimated cost for
halving the NRM is estimated to be around USD 20 billion, the amount of water that can be saved could serve an
additional 150 million people (GIZ 2010).
An alternative to this vicious urban water cycle would be to adopt an integrated water cycle management approach
that encourages water users to adopt simple and cost-effective water saving solutions through a combination
of regulatory and market-based instruments. For example, there can be a steeply progressive water tariff for
those who consume more water. Such a tariff system however would need to be equitable and include social
considerations, such as large family size. Those willing to adopt water saving technologies such as low-water
faucets and showerheads, and low-water flushing toilets could be incentivised through innovative financing
mechanisms that ensure that the life-cycle cost of water saved is lower than the cost of water purchased from the
water utility. Smart water metering can help water utilities in identifying changes in water usage, better detecting
leakages, enhancing consumer awareness and reducing operational costs. Building codes could be revised to
mandate the adoption of dual-pipe systems in large buildings so that grey water from wash basins and showers
could be treated and reused for flushing toilets, gardening and general washing purposes that do not need the
use of potable water. Rainwater harvesting and storm water management could be enforced to further reduce the
dependence on municipal water supply.
Box 9.5: Closing the water loop in Namibia
The city of Windhoek in the sub Saharan African country of Namibia is closing the water loop to a great extent
by adopting integrated water management principles. The city has a current water demand of 25 million
Cubic meters per annum, compared to a low scenario projection of 46 million cubes per annum. Windhoeks
efforts started way back in 1993 when a dual piping system was adopted to irrigate all municipal parks,
gardens and sports fields with semi-purified sewage effluent, thus reducing 5 to 7 percent of the potable
water demand. The city has commissioned more plants to supply up to 35 percent of daily demand from
direct potable reclamation. Artificial aquifer recharge systems implemented in phases are adequate for the
city to survive for two years without depending on ephemeral rivers.
Source: (Worldbank 2012)
Finally, decentralised/distributed wastewater treatment facilities could be commissioned as wetland treatment
systems at the urban district level, to minimise the pumping energy and encourage reuse of treated wastewater
for urban greening and agriculture. Such a virtuous urban water cycle can thus be managed cost-effectively with
an integrated urban water management system, achieving potable water conservation, wastewater minimisation
and storm water management, while ensuring other benefits such as urban greening and improving urban quality
of life. Water Sensitive Urban Design (WSUD) is such an approach, seeking to integrate water cycle management
into urban planning and design.
Cities are increasingly reducing the dependence on remote water supplies by reclaiming and recycling used water
and rainwater harvesting. Thanks to the development of effective treatment technologies, water can be reused,
either to meet water-supply needs or to enhance and restore the environment. Further, it is also possible to extract
from the waste stream useful products such as organic matter, soil conditioning products and nutrients. The storm
water can be managed by taking advantage of natural systems not only to relieve the burden on infrastructure,
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but also to enhance natural areas, reduce heat-island effects, and contribute to more pleasing, liveable urban
environment.
Sustainable waste management

Waste is a by-product of consumption and production and without intervention will continue to increase. Globally
waste generation is on the rise, particularly in developing countries. Across the world, many governments have
insufficient human and financial resources to handle waste in an environmentally and economically sound
manner, most noticeably in rapidly growing urban centres. Poor waste management practices not only impact
human health and environmental quality, but can have negative economic and social impacts. In addition,
improper waste management can significantly contribute to greenhouse gas emissions. Developing sustainable
waste management strategies is essential, and is a key priority for both stable and growing cities.
Despite these challenges, waste however, presents many opportunities for a transition towards sustainability.
Sustainable waste management can contribute to various national and global agenda such as food security,
energy sufficiency, improved public health, poverty reduction, climate change mitigation and economic growth.
Sustainable waste management can positively contribute to poverty reduction strategies, create livelihood
opportunities and improve opportunities for the socially marginalised. When waste is treated as a resource that
can be recovered and put to productive and profitable use, significant benefits can be realised.
Shutterstock
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Box 9:6 Job creation through sustainable waste management

In 2000 recycling activities in the EU accounted for 229,286 jobs, which by 2008 had increased to
512,337 an annual growth rate of 10.57%.
Source: (Phitsanulok Municipality 2011)
Figure 9:5 Waste management hierarchy
Part B
The central principles of waste management, which should be applied in integrated waste management policies
are: the waste management hierarchy, life-cycle thinking and resource efficiency (UNEP 2013). The waste
management hierarchy indicates an order of preference for sustainable waste management and demonstrates
that first and foremost policy should take action on preventing waste generation. This is followed by reduction,
recycling, recovery and lastly disposal. Once the volume of waste for collection, transportation and disposal
decreases, the budget required for waste management will also decrease. The waste hierarchy is often used in
a simplified form known as the 3Rs (reduce, reuse, recycle) and is sometimes further broken down into the 4Rs,
5Rs, etc. Regardless of the form, the principles remain the same.
Source: (UNEP 2011)
Table 9.3 Considerations, in order of preference for urban and rural sustainable waste
management
1
Waste prevention. Change the range, composition and design of products to reduce waste. Requires
education within the waste management sector and the community.
Source separation. Enable the value of reusable goods and recyclable materials to be recovered and is
preferable to downstream, more difficult and expensive sorting. Requires cooperation and engagement
of the entire community.
Reuse. Recovers value and can be encouraged by changing product design to make reuse easier. Policy
intervention is necessary to divert materials towards avenues of reuse.
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Composting and anaerobic digestion. Diverts waste from landfill and can generate valuable products
such as compost and methane for energy.
Recycling. Requires collection, sorting and processing. Extended producer responsibility (EPR) is
a key policy tool for encouraging recycling.
Materials recovery. Recovering useful materials from discarded products. Regulation, awareness
raising and capacity building to ensure basic health and safety standards and environmentally sound
practices should be given high priority.
Disposal. The least preferable method, should be used as a last resort after all other options are
exhausted.

Implementation of the waste hierarchy and resource efficiency policy can thus contribute to the long-term
ambitious target of zero waste. These policies shift the focus from end-of-pipe solutions (e.g. sanitary landfill,
incineration) and disposal practices toward upstream resource management (e.g. eco-design, new product
development), waste utilisation (e.g. composting, animal feed, material recycling), and energy recovery (e.g.
electricity generation using heat from waste incineration).
Waste management is a cooperative process and requires the involvement of numerous stakeholders including
national, regional and local government, the community, private sector, informal sector, NGOs and research
institutions. Most waste management activities occur at the local level, emphasising the importance of a
bottom-up approach to policy development, and the need for close cooperation between national and local
agencies.
Involvement of the private sector in waste management can significantly reduce the burden for local governments.
However, government must establish the necessary supportive institutional frameworks such as regulation and
awareness raising campaigns to ensure there are sufficient economic incentives, regulations and monitoring
in place. Close engagement is also needed with the production and commercial sectors to influence product
design. Most importantly cooperation is needed with the general public to encourage sustainable choices and
participation in sustainable waste management strategies.
Sustainable waste management can provide a wide array of social, economic and environmental benefits,
both for local stakeholders and for the global environment, including improved resource efficiency, public
health protection, job creation, poverty reduction, avoided detrimental local and global environmental impacts
and enhance economic development. It requires a transition from focusing on service delivery, to managing
resources for the future and requires consideration of the sources of waste. Guidelines for National Waste
Management Strategies launched in 2013 by UNEP/UNIDTR is an excellent publication with detailed guidance
on developing, implementing reviewing, revising and updating national waste management strategies.
Sustainable Urban Form

The form of the contemporary city has been perceived as a source of many urban problems. It has led
to inefficient land-use practices and policies that have resulted in urban sprawl, increasing the demand for
resources and affecting habitat and ecosystems. Growing evidence around the world indicates the need for
urgent changes in urban form that can contribute to lower consumption of resources, reduced environmental
impacts and resilience to change without compromising socio-economic activities and the well-being of the
population.
The debate over desirable urban form is not something new. Many distinctive ideas and design concepts of
urban forms exist, as follows:
Compact city: its distinctive characteristics are high-density development, mixed land-use, and
compactness around commercial centres and urban transit nodes.
Eco-city: it is conceptualised as an eco-system that aims at not consuming more resources that it
can produce, not producing more waste than it can assimilate and not polluting the environment; it
emphasises urban greening and ecological and cultural diversity.
Neo-traditional development: best known among the neo-traditional approaches to planning is
the new urbanism that advocates design-based strategies based on traditional urban forms that can
enhance the neighbourhood concept and bolster a strong sense of community.
Urban containment: it imposes geographical constraints on urban growth to contain sprawl by
preventing the outward expansion of the urban field.
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Another talked-about desired urban form is the concept of the regenerative city that promotes a whole new
perspective of restoring environmental systems and positively contributing to eco-system services. It addresses
the relationship between cities and their hinterland, and even with the distant territories that supply such cities with
goods and services. For example, it may include supporting reforestation in the hinterland to increase its capacity
for carbon sequestration or promoting organic agriculture through economic ties.
While it is important to build the city to respond to economic demand, it should not be seen just as a place for
economic, financial and industrial production. The citys sustainability will be based on the relationship between
environmental constraints and the economic and social demands of the city.
Part B
So what would be the characteristics of the smart cities of the future? The one size fits all concept will not
work because a city develops by drawing advantages from the specificities of its site as well as by taking into
account the sites constraints. A city can develop successfully by identifying its key strengths, weaknesses and
uncertainties in order to propose suitable solutions adapted to the unique characteristics of the site. Identifying
uncertainties and vulnerabilities such as the impacts from climate change is particularly crucial for building resilient
cities. Development and design today, needs to consider future scenarios to capture disaster risk reduction,
preparedness and adaption to change within the urban form. The social and environmental characteristics should
form an integral part of urban development. Urban governance has to play a decisive role by associating and
privileging all those who will live in the city and ensure its future.
Box 9:7 Strategic urban planning framework

Strategic urban planning is recognised as an important tool that helps local governments conduct themselves
more efficiently and effectively in the designing of policy and in its implementation. Urban planners and
policymakers need to respond to four essential questions that will assist them in addressing urban challenges
and creating an effective and inclusive, long-term development plan:
(1) Where are we now?: Answering this question requires identification of stakeholders, data collection and
analysis;
(2) Where do we want to go?: Answering this question lies in establishing a vision and setting objectives;
(3) How do we get there?: This would need identifying actions and strategies, prioritising and implementing
actions; and
(4) Are we getting there?: This step involves monitoring and evaluation, followed by adjustment and fine-tuning
policies.
Source: (UN ECLAC, et al 2011)
The new modes of urban development would not be possible without defining appropriate legal frameworks to
suit the scale of territory and without resorting to strategic local and regional sustainable development plans.
These can be either holistic or specific (e.g. territorial climate plan or urban mobility plan). The planning process
should be unique in terms of its scope, objectives, capacities, leadership and pace of urban growth. The strategic
planning framework will have to include flexible tools that can be applied by any city regardless of its size, level of
development and nature of challenges faced.
Smart Cities of the Future: Strengthening governance to act locally for achieving
global goals
Sustainable urban development calls for a high level of commitment from local authorities, a transparent,
participatory and inclusive urban management. Expensive centralised systems are giving way to more network
based, decentralised approached. This may include clusters of towns within a city that have high compactness and
that have infrastructure services such as power generation, water supply facilities, food production and workplace
in their vicinity. Greater efforts are being made to increase urban density, favour mixed land use patterns, enhance
energy and water efficiency, provide better infrastructure services and encourage citizens in adopting one-planet
lifestyles. Examples of such initiatives include:
Integrated urban land use and transport planning that favours compact cities and public transport
instead of urban sprawl and private car-centred development.
Shifting from road to rail transport.
Moving away from energy-wasting buildings to low- or zero-energy buildings.
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Converting fossil-fuel dependent and wasteful energy systems into energy-efficient systems that run
on renewable energy sources.
Adopting integrated and decentralised water supply and wastewater disposal systems.
Developing sustainable waste management strategies, which prioritise reducing waste generation
and consider waste as a resource for further use.
Discerning urban decision makers will need to display strong leadership and commitment towards planning,
designing and managing sustainable infrastructure. They must aim for infrastructure that does not burden cities
with high debts and does not lock cities into high consumption and production patterns throughout its lifespan.
In designing new infrastructure and retrofitting existing ones, decision makers must adopt a leap-frogging
strategy, and plan for the long term. Such critical decisions may appear challenging in immediate terms but will
reap long-term benefits.
The transformation of cities cannot become a reality without increased political leadership, public engagement
and entrepreneurship. Local governments need to be empowered, and stakeholders across all levels engaged.
Governance that puts sustainability on the top of its agenda will make a decisive difference and make cities
more competitive, efficient and attractive while locking in lower resource use and carbon outputs for future
generations.
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Further reading 9
Sustainable Resource Efficient Cities Making it Happen aims to formulate a broader
framework of integration which is required for cities to transition to sustainable, resource
efficient development and to realise green urban economic growth trajectories that
are equitable and sustainable. Within a strategic framework it presents a set of policy
positions and recommendations for sustainable resource efficient cities.
Liveable Cities The Benefits of Urban Environmental Planning presents policy tools
and options in addressing sustainability and incorporating environment in urban planning.
The case studies presented offer insight on what works, fails and opens up in trying to
realise sustainable urban development.
Part B
United Nations Environment Programme 2012, Sustainable Resource Efficiency Cities

Making it Happen, UNEP, Paris.
Cities Alliance, ICLEI & UNEP 2007, Liveable Cities The Benefits of Urban Environmental
Planning, Cities Alliance, Washington.
Are we building competitive and liveable cities? - Guidelines for developing ecoefficient and socially inclusive infrastructure provides good reference to eco-efficiency
and offers five new ways for city mayors to build competitive and liveable cities.
United Nations, Economic Commission for Latin America and the Caribbean, United
Nations Habitat, United Nations, Economic and Social Commission for Asia and the
Pacific & Urban Design Lab of The Earth Institute (Columbia University) 2011, Are we
building competitive and liveable cities? - Guidelines for developing eco-efficient and
socially inclusive infrastructure, United Nations, Bangkok.
Guidelines for National Waste Management Strategies: Moving From Challenges

to Opportunities launched in 2013 by UNEP/UNIDTR is an excellent publication with
detailed guidance on developing, implementing reviewing, revising and updating national
waste management strategies.
United Nations Environment Programme 2013, Guidelines for National Waste Management
Strategies: Moving from Challenges to Opportunities, UNEP.
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10
Sustainable Public Procurement (SPP)
Part B
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10
Sustainable Public Procurement (SPP)

Key Points
SPP can play a powerful role in the transition towards SCP.
How has SPP been implemented in different countries; the prerequisites, opportunities and challenges.
Successful SPP initiatives can have a positive impact on national
economies.
This chapter highlights the important role that SPP can play in the transition towards SCP. It identifies
opportunities and challenges for implementing SPP and provides guidance for governments in developing and
implementing successful SPP programs.
What is SPP and why is it important?

The Marrakech Task Force on Sustainable Procurement accepted the definition of the UK Sustainable
Procurement Task Force (2006) : a process whereby organisations meet their need for goods, services and
utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to
the organisation, but also to society and the economy, while minimising damage to the environment.
In the above statement, if the term organisations were replaced with governments then Sustainable Public
Procurement is clearly defined.
Sustainable Public Procurement (SPP) was identified as a major route to sustainable development as far back
as the Earth Summit in Rio in 1992 when it featured in Agenda 21. It saw reiteration in the Johannesburg Plan of
Implementation in 2002 and more recently, at the 19th Session of the Commission on Sustainable Development
in 2011. It forms part of the 10 year Framework of Programmes suggested at the recently concluded Summit
in Rio in June 2012.
Procurement of goods and services by the public sector which includes the central/federal government,
state/provincial governments and even towns and municipalities - can constitute as much as 50% of GDP. The
figure is somewhat lower in developed countries but is highly significant in the developing world. For countries
such as South Africa, India and Brazil, public procurement constitutes 35%, 43% and 47% of GDP respectively
while for high-income countries, the figure is 13% - 17% (Perera 2010). UNEP places the worldwide figure at
between 15% and 30%.
Figure 10:1 Public procurement as a percentage of GDP
In contrast with purchases by individuals/households, all institutional procurement is highly structured and far
less prone to the pressures of advertising, publicity, merchandising, in-store promotions etc. that the individual
is subjected to. In contrast with private sector procurement, public procurement is more easily regulated by
government; for the private sector, compliance with sustainability norms is usually voluntarily and linked to a
companys policy on Corporate Social (and Environmental) Responsibility.
Another important reason in favour of increasing sustainability in public procurement is that particularly in
less affluent countries individual consumer purchasing is very highly price sensitive. It is unrealistic to expect
an individual consumer set aside price considerations in favour of loftier principles of social justice and
environmental protection when he or she may be struggling to meet basic survival needs.
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Thus if the ultimate goal of SCP is to increase resource efficiency, reduce the impact of anthropogenic factors on
the earths climate, preserve and protect all forms of life and guarantee the future, then it is obvious that the place
to start with is consumption by the public sector. Not only can SPP have a quick impact, but a well-conceived and
implemented SPP programme can:
SPP and GPP preferred terminology

The difference between Green procurement and Sustainable procurement is self-evident. The former refers to the
environment only whereas the latter refers to the well accepted tripod of sustainability the environmental, social
and economic sustainability of goods and services.
Part B
Serve as an incentive to innovation, as vendors compete with each other to achieve higher norms of
sustainability.
Act as a model for institutional purchasing by the private sector.
Improve efficiency, as vendors attempt to reach higher levels of sustainability while adhering to
conventional criteria such as price, quality and delivery.
Encourage economies of scale in production by bulk purchases.
Serve as a demonstration of political will.
There is a school of thought prevailing which states that for the narrow purpose of sustainable procurement,
economic sustainability need not be of too much concern. No loss-making product or service would be offered
in the first place and if it were, then it would be for a very definite (social) purpose where sustainability would not
be under consideration at all. This is an on-going debate but one which does not materially affect national plans
for implementation.
Very often, the two terms are used interchangeably for diverse reasons. For example, the term green became
associated in Germany with a political party and thus sustainable became the preferred adjective (Jensen
2011). In other cases, governments are wary of using the term sustainable since this means different things to
different countries and there could be international trade ramifications. For example, wooden furniture is eminently
sustainable in Canada, Malaysia or Brazil where wood, a renewable resource, is freely available. However the use
of wood for making furniture makes little sense in the desert areas of the Middle East.
The social content of sustainable procurement causes a degree of concern to some governments. The reasoning
is that a third party should not apply its own standards and norms to what is or what is not socially acceptable in
another nation. While the more contentious issues such as defining child labour have already received significant
attention and agreement, there are still disagreements such as on minimum pay and working conditions.
Whatever definition a country chooses to adopt, the ultimate goals of its SPP/GPP programme remains constant:
Tangible increases in resource utilisation efficiency.
Perceptibly reduced harmful discharges into the air, soil or water.
Preservation of all forms of life.
Economic development and reduction of poverty.
The terminology and semantics make little difference; what counts is the ultimate objective.
Policy options and challenges in implementing SPP

Implementing an SPP program is a challenging process and it is clear that there must be a high degree of political
commitment for SPP practices to be adopted. Some of the challenges and barriers are detailed below.
Scope: Countries need to determine just what is meant by the public sector. Does this term cover central/
federal bodies, state/provincial bodies, local/city/municipal government? Does it also include governmentaided
institutions such as universities and research institutions? What about public-private partnerships and commercial
companies partly or wholly owned by the government but which are governed by the provisions of laws relating
to corporate governance (e.g. a companies act)?
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Legislation: Most countries started with no specific laws related to SPP. Legislation has had to be specially
drafted and this has often proved contentious since there have been other related laws, some of which may
have been contradictory e.g. policies demanding that the government procures goods and services at the
lowest possible price. Paying a higher up-front price is still regarded as an anathema.
Capacities within government: Capacity-building has been observed to be a critical component of all
successful SPP progrgmmes. The capacity-building needs are not confined to purchase managers of
government bodies; users, standard-setting agencies, audit and oversight bodies all require training and
sensitisation, appropriate at least to their role in the purchasing process.
Capacity-building of suppliers: No SPP programme can be implemented if vendors do not have the
technical, financial or managerial capacity to supply greener goods and services. Successful SPP programmes
invariably consider suppliers to be equal partners in the initiative who need to be involved at all stages of
development and implementation.
Certification/Verification: Some method of certification and/or verification of sustainability characteristics
by independent, third-party agencies is essential. National Ecolabels often fulfil this function but they do
not include social criteria. This is possibly why many countries simply focus on environmental criteria and
implement green, rather than Sustainable, Public Procurement programmes - leaving social considerations to
other mechanisms.
Creating unfair markets: Related to the question of capacity-building of suppliers is the concern that if the
green standards are set too high, the government could end up creating monopolies. It is also entirely possible
that some vendors will need financial assistance to adjust their production processes and methods to different
standards. This issue is of special concern to countries which are attempting to develop their own industrial
base; domestic suppliers are often unable to compete with MNCs. Often, the fear of creating monopolies is
used as a way of maintaining the status quo. As will be evident from Figure 10:2 below, training and capacity
development of purchasers and suppliers alike - is a precursor to an implementation programme for SPP. But
equally as often, this apprehension is real and a careful balance will need to be struck.
Life Cycle Analysis (LCA): Nowhere is there a greater need for capacity-building than in the area of LCA.
Especially amongst developing countries, the capacity to conduct an LCA is scarce, as is the ability to interpret
LCA studies and adapt them to local conditions. While LCA is not essential to the implementation of SPP, at
least life-cycle thinking needs to be inculcated amongst stakeholders.
Life Cycle Costing: Building in operating and maintenance costs into the procurement decision is routine;
what is not so common is the inclusion of external costs such as cost of disposal and costs to the environment
by the manufacture and use of goods and services. This has complex budgetary implications as well. In
government procurement, the capital expenditure may be incurred by one body whereas the cost of operation,
maintenance and disposal may have to be borne by another body.
Inter-Ministerial Cooperation: Dialogue is essential for the success of an SPP programme, since ministries
and departments guard their turf zealously.
The design of an SPP programme has to respond to at least the above challenges, possibly more. The
progress towards implanting an SPP programme is best illustrated in the following figure.
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Figure 10:2 The SPP approach steps
Step 4
Step 3
Step 1
Legal
SPP Policy and Action Plan

Prioritisation
Market readiness
Scoping study, project and governance set-up
Training
Training
Training
Part B
Step 2
Implementation
Training
Source: (UNEP 2012)
Impact of SPP:
Clearly no country would undertake the arduous task of overcoming such obstacles unless there was definite
evidence that SPP had a positive impact on the national economy in particular and the world in general. An
effective SPP programme demonstrates that a government is serious about resource efficiency and climate
change thus invites individuals and the private sector to follow suit the demonstration effect. There are other
intangible benefits as well:

Reduction in CO2 emissions

Cost savings, particularly if external costs are internalised
Transfer of skills and technology
Stimulation of innovative solutions to local requirements
Minority empowerment
Job creation
Wealth creation
In a recent UNEP study (2012), eight case studies of sustainable public procurement from around the world were
examined. The study demonstrated that socio-economic goals such as the promotion of local industries, the
creation of jobs and the support to micro, small and medium-sized businesses are objectives that can be achieved
through sustainable public procurement.
Box 10:1 Environmental Benefits of SPP
Within Asia, a study of 3 Chinese cities (Tianjin, Lanzhou, Qinhuangdo) reported by the Centre for Sustainable
Consumption and Production, Wuppertal (2011), revealed the following direct reductions in emissions and
resource consumption in one year:
Electricity saved:
20.36 MW
Water Saved:
39,269 KL
Oil saved:
14,008 KL
Waste reduced
24.42 Tonnes
CO2 emissions reduced
105.75 Tonnes
Such figures more than adequately substantiate the role of SPP.
A study conducted by Price Waterhouse Coopers, Significant and Ecofys in 2009 of GPP amongst the Green
7 countries in the European Union, revealed that in the 10 product groups considered, green procurement ....
contributed to an average reduction in CO2 emissions in 2006/2007..... Obviously, this depended on the share of
a product in the countrys basket of procurement with services such as transportation contributing heavily, but CO2
emission reduction ranged from 9% (Germany) to 47% (Netherlands), too high to be ignored. Significantly, costs
did not go up; rather, they decreased by 1% since Life Cycle Costing was adopted.
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Global experience
Countries with legislation on SPP:
Most of the developed world has legislation in place supportive of SPP. In the developing world, there may
or may not be specific legislation supporting SPP in a holistic manner; sustainable procurement policies and
guidelines are often found for different sectors of the economy. For example, India does not have an overarching law on SPP; instead, there are guidelines stipulating that certain products can only be purchased by
the government if they are produced by registered small-scale industries or handloom weavers or that price
preference is to be accorded to purchases from them.
This sector-specificity has led to the evolution of a number of so-called private labels standards, sometimes
known as ISEAL labels, after the ISEAL Alliance (previously the International Social and Environmental
Accreditation and Labelling Alliance). Examples of product-specific labels or standards include the Forest
Stewardship Council, Marine Stewardship Council, Roundtable on Sustainable Palm Oil and Union for Ethical
Biotrade. Other such labels relate more to generic sustainable practices and these include the Rainforest
Alliance, Sustainable Agriculture Network and Fairtrade. Whilst these ISEAL labels are often adopted by the
private sector, their acceptance amongst public procurement agencies is low. Governments tend to favour
their own ecolabelling schemes.
SPP is not merely the purview of central/federal government procurement bodies it is often practiced by
states/provincial governments and even by municipal bodies. ICLEI, Local Governments for Sustainability
(2011), lists a number of SPP projects and initiatives undertaken by its 1200-strong membership across the
globe.
The following summarises the state of legislation in support of SPP in some major economies across the globe.
European Union: The EU probably has the most highly developed policy and legislative measures in support
of Green Public Procurement. The foundations of GPP go back to 2004 when the Council and the European
Parliament adopted Directives 2004/17/EC and 2004/18/EC which clarified, simplified and modernised
prevailing European legislation on public procurement and contained specific references to the inclusion of
environmental considerations in the procurement process. Public purchase accounts for over 2 trillion Euros
annually about 19% of the EUs GDP and the EU recognises that buying green serves the dual purpose of
environmental conservation and simultaneously saving money. For example, the EU (2004) estimates that the
City of Vienna saved 44 million and 100,000 tonnes of CO2 between 2004 and 2007 through its Ecobuy
programme, which took into account a life-cycle approach.
By 2011, GPP criteria had been developed for 18 different products and more were being studied for inclusion.
In addition there are EU environmental requirements for certain specific sectors such as office I.T. equipment,
road transport vehicles and buildings as well as in the rules for disposal of hazardous substances and waste
and recycling. Nevertheless, there is some variance in the progress towards achieving the ECs goal of greening
50% of all purchases, a target which was to have been achieved by 2010, with just 7 Member States having
made major progress
China: The legal basis for SPP is found in the Government Procurement Law of 2003. This was greatly
facilitated by the fact that the China Environmental Label initiative had been launched as far back as 1997 by
the State Environmental Protection Administration, thus encouraging decisions to accord preference to green
products. In 2006, the Ministries of Finance and Environmental Protection jointly issued the Recommendations
on the Implementation of Environmental Labelling Products in government procurement, effectively marking
the formal commencement of SPP. The recommendations are applicable at central, provincial and municipal
levels. Subsequent policy pronouncements and the 12th 5-Year Plan reinforce the decision to promote SPP.
The Global Ecolobelling Network Website (2012) lists 67 product categories of Ecolabels in China and there
are said to be some 23,000 ecolabelled products now available.
India: There is no specific legislation supporting SPP at the moment. The long-awaited Public Procurement
Policy announced in mid 2012 focused on transparency in the procurement process and makes a passing
reference to sustainability, permitting (but not requiring) purchasers to include environmental considerations as
one of the socio-economic factors which may be included in the criteria for procurement. In the face of fairly
rigid pronouncements such as the General Financial Rules (2005) and the Delegation of Financial Powers Rules
(1978) which strongly support the lowest price (L1) criterion for procurement, it is difficult for a purchaser to
decide on grounds of sustainability.
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Some major procurement bodies such as the Indian Railways overcome the obstacles by crafting specifications in
a manner which includes environmental criteria and the Central Governments procurement agency, the Directorate
General of Supplies & Disposals, have set examples by unilaterally deciding to purchase environmentally friendly
electrical appliances and CFLs (Morton & Gandhi 2011).
These agencies are also Board members in the National Eco-labelling Program of the Philippines-Green Choice
Philippines (NELP-GCP) and thus it should be relatively easy to integrate the eco-labelling programme with the
green procurement programme. It is, however, premature to comment on the progress of this initiative.
Part B
Philippines: As far back as 2004, the Philippines Government issued Executive Order No.301 which outlined
its Green Procurement Programme. In January 2012, the Philippines Department of Environment & Natural
Resources announced that it had signed an MOU on GPP with other Ministries, viz. Department of Budget
and Management (DBM), Department of Trade and Industry (DTI), the Department of Energy (DOE), Industrial
Technology Development Institute, Department of Science and Technology (DOST), Philippine Center for
Environmental Protection and Sustainable Development, Inc. (PCEPSDI), the Philippine Economic Zone Authority
(PEZA), the Development Academy of the Philippines (DAP) and Quezon City local government.
Switzerland: The Federal Constitution of Switzerland specifically includes the promotion of Sustainable
Development as a declared Aim in Article 2.2. Article 73 of the Constitution specifically states that the
Confederation ....shall endeavour to achieve a balanced relationship between nature and its capacity to renew
itself and the demands placed on it by the population. This facilitated the Federal Act and Ordinance on Public
Procurement which, while stressing the need for purchases based on the lowest price, also place emphasis on the
social and, under Article 21, the environmental soundness of products and services. The Swiss Federal Council
has pronounced a Sustainable Development Strategy for 2012-15 which lists as a major challenge increasing
economic productivity while decoupling from resource and energy usage, aligning consumption with Sustainable
Development. The Federal Council has also set targets for reductions in pollution per employee from the base of
2006 to -6% by 2012 to 10% by 2016. A notable feature of the Swiss legislation is that the successful bidder
is responsible for not merely its own compliance to SPP norms, but for its supply chain as well.
USA: The US Environmental protection Agency (EPA) publishes a Green Purchasing Guide and assists the Federal
Government (as well as other interested parties in the public and private sector) in preferentially procuring green
products, the emphasis being very largely on the environment. The President, by Executive Order 13423 of
2007 requires federal agencies to use sustainable environmental practices when acquiring goods and services,
including acquisition of bio-based, environmentally preferable, energy-efficient, water-efficient, and recycledcontent products. A subsequent Executive Order - 13514 of 2009 - requires Federal agencies to procure products
that are energy-efficient, water-efficient, bio-based, environmentally preferable, non-ozone depleting, contain
recycled content, or are non-toxic or less-toxic alternatives. The EPAs guidelines are founded on the principles of:

Including environmental considerations as integral to routine purchasing decision-making.

Pollution prevention also forming an integral component of procurement decisions.
Ensuring that products and services are assessed on the basis of Life Cycle Analysis.
Comparing the environmental impacts of goods and services when selecting them.
Compiling reliable data and information about environmental performance of goods and services
procured.
Environmentally preferable purchasing has percolated down to State and County levels and takes the form of
both mandatory and voluntary directives/guidelines with States such as California taking the lead. The Energy Star
rating is possibly the most well-known and followed example of a guideline for procuring electrical and electronic
appliances. The EPA Guidelines form the basis of such State/County-level initiatives and even such diverse arms
of the Federal Government such as NASA and the U.S. Department of Defense have adopted green procurement
systems. The latter, for example, has green procurement norms for buildings and construction, paving material,
paints motor oil and HVAC in buildings.
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Other Countries: Most countries have Sustainable Public Procurement programmes at differing stages of
implementation. In Latin America, Argentina, Brazil, Chile and Colombia are known to have legislation and/or
policies requiring the inclusion of environmental criteria in the public procurement of select goods and services.
Even countries as small as Mauritius have, with the assistance of the UNEP-led Marrakech Task Force on SPP,
implemented SPP from 2009, starting with a list of 7 product categories which have a high environmental
impact (such as paper and printing, office and classroom furniture, vehicles, I.T. devices and construction).
Clearly, all countries have accepted that a successful SPP initiative must form a critical component of their
sustainable development programmes.
FURTHER READING 10
Sustainable Public Procurement Implementation Guidelines is recommended
for an insight into the challenges and opportunities that are faced during the
implementation phase of sustainable public procurement.
United Nations Environment Programme 2012, Sustainable Public Procurement
Implementation Guidelines, UNEP DTIE, Paris.
The Impacts of Sustainable Public Procurement is a study into the benefits of SPP
in developing, developed and in transition economies. It provides eight excellent case
studies from across the globe and reviews the social, environmental and economic
benefits that resulted from SPP.
United Nations Environment Programme , The Impacts of Sustainable Public
Procurement, UNEP, Paris.
Procuring the Future Sustainable Procurement National Action Plan

Recommendations from the Sustainable Procurement Task Force provides
an overview of how the U.K implemented SPP, offering insight into strategies for
successful SPP implementation.
DEFRA 2006, Procuring the Future Sustainable Procurement National Action Plan
Recommendations from the Sustainable Procurement Task Force, Department for
Environment Food and Rural Affairs, London.
Procuring Green in the Public Sector A Checklist for Getting Started provides a
checklist designed for policymakers and people working in public sector procurement,
to help get started on green procurement. It also provides a business case for moving
towards greener procurement.
Perera, O 2011, Procuring Green in the Public Sector A Checklist for Getting Started,
IISD, Available from: <www.iisd.org/pdf/2011/procuring_green_public_sector.pdf>.
[September 2012].
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Part B
shutterstock
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11
Sustainable Tourism
Part B
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11
Sustainable Tourism
Key Points
When is tourism sustainable?
Sustainabie tourism policies should address the challenges of
poverty.
There are economic, social and environmental impacts from
sustainable tourism.
Tourism has a complex value chain. Developing sustainable tourism
policies requires the engagement of a large range of stakeholders.
There are a number of international and multilateral organisations,
industry bodies and NGOs who have developed frameworks for
sustainable tourism.
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This chapter identifies opportunities to facilitate and encourage more sustainable approaches to tourism, with
a particular focus on poverty and tourism.
What is sustainable tourism and why is it important?

The magnitude and impacts of the tourism Industry
Tourism is one of the worlds largest industries and one of its fastest growing economic sectors. It has a
multitude of impacts, both positive and negative, on peoples lives and on the environment. According to the
UN World Tourism Organisation, international tourism receipts exceeded US$1 trillion in 2011.
Figure 11.1 International arrivals 2011

Americas, 156.6
Middle East,
55.45
Africa, 50.17
Asia-Pacic, 217
Europe, 503.96
Figure 11.2 International tourism growth over 2011

8
6
6.2
Asia-Pacic
Europe
3.9
4
2
6.1
0.9
0
-2
Africa
Americas
Middle East
-4
-6
-8
-10
Source : (UNWTO 2012)
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-8
Europe remains the topmost destination in the world, with 12 countries appearing in the list of top 20 destinations.
France leads with 79.50 million arrivals and within the continent, Spain, Italy and Turkey follow. The USA hosts
62.30 million arrivals and is the worlds second most popular destination, with China, at 57.60 million arrivals in
2011, coming in third. No destination in Africa or South America features in the top 20 at all.
The Global Sustainable Tourism Council estimates that tourism contributes to 5% of the economic activity of the
world and about 7% of employment.
Part B
The above figures pertain to international tourism; domestic tourism is not so easily quantified principally because
there are difficulties in its definition. Nevertheless, a report issued in 2008 jointly by the UNWTO and UNEP in
collaboration with the World Meteorological Organisation places domestic tourists in 2005 as being over 5 times
the number of international tourists, but this varies from country to country. The category of Visiting friends and
relatives (VFR) accounts for a large percentage of domestic tourism and thus Asian countries, often having larger
and more cohesive family structures, have a significantly higher ratio of domestic to international tourists. In China
(2005) the ratio of international to domestic tourists was 1:26. In India (2003) it was 1:110 and in Thailand (2005)
and Viet Nam (2003) it was 1:7 and 1:5 respectively (UNESCAP 2007).
These millions of tourists are already consuming and will continue to demand enormous quantities of energy, water,
and natural resources to support their holidays and thus will put additional pressure on ecosystems and natural
resources. They will bring income to local communities and will support employment. At the same the increasing
demand for basic services and goods from tourists will often cause price hikes that negatively affect local residents
whose income does not increase proportionately. As with any productive sector, tourism brings negative impacts
and positive effects for the environment, the society and the economy at local, national and global levels.
The overall review and estimation of tourisms final contribution to the sustainable development of a destination is
done on a case by case basis and includes a number of impact areas that should be reviewed.
Box 11:1 The tourism industry and climate change
Tourism is both a cause of and is affected by climate change and environmental degradation. Air travel for
example, causes atmospheric pollution by definition and hotels, particularly those in remote locations, place
a significant burden on infrastructural facilities such as sewage and waste treatment and water and electricity
supply. Simultaneously, tourism is affected by climate change: the choice of destinations is often dependent on
the expected climate and many tourist activities such as skiing, trekking or surfing are climate-driven.
Since so much of tourism is climate-dependent, any changes could have a significant impact on the desirability
of destinations and thus the flow of tourist traffic. Some predict that with global warming becoming a reality,
there will be a shift in preference from the lower latitudes with warmer climates to the higher latitudes and cooler
climates.
Definitions, precepts and misconceptions
With one of the most complex supply chains of any industry, a set of numerous positive and negative impacts and
with ambiguity regarding the nature of tourism as an industry, a sector or an economy cluster, defining sustainable
tourism is not an easy task.
The most widely accepted and commonly used definition of sustainable tourism (UNWTO 2004) is the following:
Sustainable tourism development guidelines and management practices are applicable to all forms of tourism in
all types of destinations, including mass tourism and the various niche tourism segments. Sustainability principles
refer to the environmental, economic, and socio-cultural aspects of tourism development, and a suitable balance
must be established between these three dimensions to guarantee its long-term sustainability.
UNWTO further stipulates that sustainable tourism should:
Make optimal use of resources, maintain essential ecological processes and conserve natural heritage
and biodiversity.
Respect the social and cultural heritage and value systems of host communities and contribute to
greater understanding and tolerance.
Ensure economically viable operations and that the socio-economic benefits are distributed equitably
amongst all stakeholders.
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Box 11:2 Critical challenge for tourism

The critical challenge before the global tourism sector is to develop a coherent policy strategy that decouples the
projected massive growth in tourism in the decades ahead from increased energy use and GHG emissions, so
as to allow tourism growth to simultaneously contribute to poverty alleviation and play a major role in achieving
the United Nations Millennium Development Goals (MDG).
(UNEP-WTO-WMO 2008)
A term that is many times used in parallel or as a substitution to sustainable tourism is the term ecotourism.
There are hundreds of definitions of ecotourism and in general most of them consider that ideally ecotourism is
nature based tourism that embraces the principles of sustainable tourism. According to the Quebec Declaration
on Ecotourism (adopted in 2001 during the UN International Year of Ecotourism), ecotourism embraces the
principles of sustainable tourism and the following principles which distinguish it from the wider concept of
sustainable tourism are:
Contributes actively to the conservation of natural and cultural heritage.
Interprets the natural and cultural heritage of the destination to the visitor.
Lends itself better to independent travellers, as well as to organised tours for small size groups
(2002).
Unfortunately in recent years, the term ecotourism has been literally abused and used to describe activities
that have no relation to real ecotourism. Some desert hotels and resorts, where water is scarce, boast of
jacuzzis, bathtubs and swimming pools. Ecotourism voyages to Antarctica have posed serious threats to
bird and marine life in a fragile ecosystem while the route to Mount Everest is littered with human refuse and
even corpses. In Africa, the behaviour of lions in some wildlife parks is said to have changed with frequent
exposure to humans. Principles of sustainability could well be applied to such examples of tourism but it is
quite unfortunate that many of these activities are described as ecotourism while they are practically nature
based tourism.
Sustainability in tourism is not just about the environment; equally important is the effect of tourism on the
culture, heritage and economic wellbeing of stakeholders. All tourism needs to be made more sustainable
since the existing infrastructure is often unable to cope with the demands of tourists.
Box 11:3 Differences between tourists and locals
In developing countries per capita daily use of water by tourists can be 10-15 times that of the local community
(UNEP-WTO 2005). In Phuket, Thailand, tourists generate 2.2 kg of solid waste per person per day versus a
Thailand average of 0.65 kg. (World Bank 2003). Tourism is by nature seasonal and this has an impact both
on the infrastructure as well as on local employment. Infrastructural investments for assets (e.g. roads or
power generating capacity) which are used only for a limited period of the year can be very expensive and it
puts a great socio-economic strain on the local community to be employed for only part of the year.
Policy options for sustainable tourism

Policy Tools for Sustainable Tourism
Tourism is almost invariably a private sector activity. Thus the governments role is dual. On the one hand,
it must act as a facilitator by providing the necessary infrastructure for tourists, promoting attractions and
encouraging tourist arrivals. On the other hand, governments role is to enforce laws of the land and these may,
in some cases, be in conflict with its role as a promoter of tourism. A delicate balance has to be maintained and
this is where voluntary initiatives such as the Global Sustainable Tourism Council (GTSC) certification scheme
play a critical role: there is no confrontation since the industry has voluntarily agreed to follow norms which will
not only meet but frequently exceed the requirements of the law.
Addressing the main challenge of integrating sustainability in tourism development policies, a set of policy
recommendations have been develop by UNEP in partnership with UNWTO to set an agenda for policy making
in the area of sustainable tourism. The recommendations are based on a list of 12 principles for sustainable
tourism development. These principles were reached after extensive research and consultation in international
forums and can be used as a framework to develop policies for sustainable tourism, that recognise the two
directions in which tourism policy can exert an influence:
Minimising the negative impacts of tourism on society and the environment.
Maximising tourisms positive and creative contribution to local economies, the conservation of
natural and cultural heritage and the quality of life of hosts and visitors.
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The 12 principles are summarised below.
Part B
Economic viability: Ensure the viability and competitiveness of tourism destinations and enterprises,
so that they are able to continue to prosper and deliver benefits in the long term.
Local prosperity: Maximise the contribution of tourism to the prosperity of the host destination including
the proportion of visitor spending that is retained locally.
Employment quality: Strengthen the number and quality of local jobs created and supported by
tourism, including the level of pay, conditions of service and availability to all without discrimination by
gender, race, disability or in other ways.
Social equity: Seek a widespread distribution of economic and social benefits from tourism throughout
the recipient community, including improving opportunities, income and services available to the poor.
Visitor fulfilment: Provide a safe, satisfying and fulfilling experience for visitors, available to all without
discrimination by gender, race, disability or in other ways.
Local control: Engage and empower local communities in planning and decision making about the
management and future development of tourism in their area, in consultation with other stakeholders.
Community wellbeing: Maintain and strengthen the quality of life in local communities, including social
structures and access to resources, amenities and life support systems, avoiding any form of social
degradation or exploitation.
Cultural richness: Respect and enhance the historic heritage, authentic culture, traditions and
distinctiveness of host communities.
Physical integrity: Maintain and enhance the quality of landscapes, both urban and rural, and avoid
the physical and visual degradation of the environment.
Biological diversity: Support the conservation of natural areas,
habitats and wildlife and minimise damage to them.
Resource efficiency: Minimise the use of scarce and nonrenewable resources in the development and operation of tourism
facilities and services.
Environmental purity: Minimise the pollution of air, water and land
and the generation of waste by tourism enterprises and visitors.
On the basis of these 12 principles a broad number of specific instruments are
available to policymakers. These include:
Measurement instruments which set indicators and identify the
limits. Typically the Sustainable Tourism Criteria established by the
Global Sustainable Tourism Council extend to measurable indicators
and an appraisal and certification scheme which is rapaidly gaining
acceptance by the accommodation sector.
Command and control instruments, such as legislation/regulation
and licensing. Laws pertaining to land use, access, waster disposal,
pollution control, minimum wages and the like exist in almost all
countries; occasionally, these are relaxed for the tourism indistury in
some developing countries in an effort to attract foreign tourists and
investments in the industry .
Economic instruments taxation/levies and incentives. Fiscal
incentives for certified sustainable tourism practices are genuienly needed and require the urgent
attention of policymakers.
Voluntary instruments such as the certification, reporting and auditing. Sustainability reporting by large
companies is frequently required by law and many international hotel chains are thus under obligation to
report annually on their sustainability performance along with their financial results. However, this many
not apply to smaller businesses.
Supporting instruments such as infrastructure development, capacity building and marketing.
These are discussed in detail in the UNEP-UNWTO publication Making Tourism More Sustainable (2005) which
should be referred to by policymakers.
Tourism and Poverty
One of the most important challenges that sustainable tourism policies should address is the challenge of poverty.
Looking at the location of poverty in the world and then at tourism flows, two key points emerge. First, tourism
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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often plays a major part in the economy of poor countries. Tourism is the principal export in a third of all
developing countries and, amongst the 49 Least Developed Countries (LDCs), it is the primary source of
foreign exchange earnings. Secondly, tourism is growing much faster in developing countries than in developed
countries. Therefore tourism, if well and sustainable managed, has great potential to alleviate poverty and
contribute to local development.
Tourism is a labour-intensive industry by definition. Universally, tourism has both a direct and indirect impact
on employment and the beneficiaries are both international and local labour. There is considerable evidence
to suggest that a rise in tourist arrivals leads to a rise in employment in the host destination and vice versa.
Tourism can also be highly capital intensive and can lead to a significant inflow of Foreign Direct Investment.
The combination makes tourism a highly desired industry by most governments.
Although tourism has significant potentials as a driver of local development and poverty alleviation, there are a
number of challenges to be met if this potential is to be realised. These challenges include issues of ownership,
economic leakage (from the local economy and through imports), local employment, benefit distribution,
social and environmental impacts and dependency. These problems can only be effectively addressed at the
destination level with the active participation of the local communities.
UNESCAP (2003) clearly spells out how sustainable tourism can assist in poverty alleviation. It summarises by
stating that The effective development, execution and management of a successful pro-poor tourism strategy
reaches far beyond local communities. It can:
Enhance a countrys international profile.
Open the door to new investment.
Raise living standards.
Provide additional funds for education and training.
Stimulate economic growth.
Bring about environmental reforms.
Develop a group of innovative entrepreneurs.
Create new business opportunities.
Recent interesting initiatives have been trying to mainstream the use of tourism as a driver for poverty alleviation.
Research indicates that these initiatives are promising but there is still a great amount of work to be done.
For example, a paper by Manyara & Jones (2007) indicates that community priorities are often inadequately
addressed by initiatives of pro-poor tourism. Furthermore a DFID study on the effects of tourism in poverty
concluded that the conventional focus on international tourism and foreign exchange has missed the potential
to enhance the benefits of tourism for the poor and failed to minimise costs on the poor.
Box 11:4 The impacts of tourism
Tourism can, for example, provide employment for local people but it can also contribute to an increase in
their cost of living, e.g. housing, food. It can give visitors a greater understanding and appreciation of people
from diverse backgrounds but it may result locally in a disruption of traditional customs and traditions. It
can improve roads and infrastructure but it may require communities to raise taxes for additional services.
It can provide better recreational and cultural facilities but also create overcrowding, traffic congestion, litter,
vandalism and crime (UNESCAP 2003).
Multilateral Agencies and Sustainable Tourism
There are a number of multilateral agencies industry bodies and NGOs working on Sustainable Tourism.
UNWTO: Foremost amongst these is UNWTO. Started as the World Tourism Organisation in 1970 when its
statutes were adopted, it became a working entity in 1975 with Headquarters in Madrid and joined the UN
system in 2003, becoming known as UNWTO. UNWTO is not intended solely to promote sustainable tourism,
it has a broader canvas; it however describes itself as follows: UNWTO promotes tourism as a driver of
economic growth, inclusive development and environmental sustainability, and offers leadership and
support to the sector in advancing knowledge and tourism policies worldwide (2012).
Marrakech Task Force on Sustainable Tourism: UNEP sponsored the creation of 7 Marrakech Task forces
following the decision taken at the International Experts Meeting on Sustainable Consumption & Production
in Marrakech in 2003, which marked the commencement of the Marrakech Process. Following the
recommendations of the Johannesburg Plan of Implementation (JPOI) that developed countries must take the
lead in accelerating the shift towards more sustainable consumption and production, each of the Marrakech
Task Forces was chaired by a developed country. The Task Force on Sustainable Tourism was thus chaired by
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France and comprised members from 18 countries representing 17 businesses, international organisations and
NGOs. It supported over 40 projects worldwide and conducted a series of meetings of stakeholder groups.
Global Partnership for Sustainable Tourism: The work of the Marrakech Task Force was handed over in 201011 to the Global Partnership for Sustainable Tourism. It has 83 members from government, industry and NGOs
and has the following objectives:
Global Sustainable Tourism Council: The UN Foundation, with the support of UNEP, UNWTO and other leading
international bodies set up the Global Sustainable Tourism Council (GSTC), now headquartered in Washington
DC. The GSTC describes itself as a global initiative dedicated to promoting sustainable tourism practices around
the world. Its objectives include:

Part B
Bring together international organisations, governments, civil society and tourism trade groups as
members of the Global Sustainable Tourism Partnership and get them involved in its activities.
Encourage networking among members and facilitate access to information about sustainable tourism.
Strengthen, coordinate and encourage the adoption and implementation of sustainable tourism policies.
Disseminate information about success stories.
Scale-up, adapt and replicate successful projects and initiatives.
Establish and implement innovative, multi-stakeholder projects that support sustainable tourism
development around the world.
Promotion of international standards on sustainable tourism.

Promotion of sustainable tourism destinations.
Promotion of market access.
Education and training on tourism sustainability.
Accreditation for standards and certification programmes.
Of these, perhaps the most significant is the development of the Global Sustainable Tourism Criteria, the latest
revision of which was published in March 2012. The initiative commenced in 2008 and involved some 50 expert
organisations which reviewed over 60 certification schemes and 4500 criteria, inviting comments from 2000
stakeholders. The result of this massive exercise was a set of principles and indicators under 4 objectives:
1.
2.
3.
4.
Demonstrate effective sustainable management.

Maximise social and economic benefits to the local community and minimise negative impact.
Maximise benefits to cultural and historical heritage and remove negative impacts.
Maximise benefits to the environment and minimise negative impacts.
Under each objective, several principles were listed and indicators were developed for each principle. Applicable
to hotels and tour operators, the GSTC provides the flexibility of adapting to a countrys particular needs and
a certification/accreditation procedure has also been developed simultaneously. The GSTC criteria have been
adopted by a number of major hotel chains and tour operators around the world.
Private Initiatives: There are several private initiatives promoting sustainable tourism such as Green Globe which
also has sustainability criteria common in many cases to the GSTC criteria and a certification scheme.
There are, therefore, a large number of organisations and networks providing guidance to the tourism industry on
how to transition to more sustainable practices, along with audit and certification schemes aimed at preventing
green-washing. Simultaneously, there exist initiatives such as the Green Passport for consumer education and
Envirotel for educating the small and medium players in the hospitality industry.
Hotels and tour operators are increasingly advertising their green certification status in publicity materials and it
is the declared intent of travel and hospitality websites to actively promote such certified businesses. There is
evidence that an increasing number of tourists are responding to these efforts.
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Box 11:5 Sustainable tourism in the South Pacific Islands

Recognising the importance of sustainable tourism, an initiative is underway in the South Pacific Islands of Fiji,
Vanuatu, Samoa and Palau. Working with the South Pacific Tourism Organization (SPTO) these countries are
enhancing their ability to manage climate change adaption within the tourism sector. The project focuses on the
following three areas:
Educating existing and new tourism entities on the issue of climate change.
Constructing and implementing a climate change adaptation strategy for community-based-tourism
initiatives.
Incorporating considerations of climate change into national tourism development strategies and
plans. (GTZ & SPREP n.d.)
The role of business
Tourism is an industry where small and large businesses co-exist and often have a symbiotic relationship. In
the accommodation sector, hotels may be owned or operated by a global chain but bed-and-breakfast rooms,
inns and home-stays also thrive in the very same environment. The transportation sector includes not only
airlines and railway networks but also the driver-owned and operated taxi, mini-bus or rickshaw and tuk-tuk.
Basic principles of sustainability apply across the board, irrespective of size. Energy conservation, for instance,
applies equally to a small inn as to a large hotel, to a taxi driver as to an airline.
There is no real reason to use construction material (such as flooring) imported into Asia from Europe, or for
exotic woods from Africa and South America. Yet such materials are prolifically used in the larger luxury
hotels. Restaurants will serve food imported in refrigerated condition from thousands of miles away, often in
preference to fresh, locally available produce. Again, this is found mainly in the upper-end luxury hotels and
dining establishments. In many developing countries which often which boast of some of the worlds greatest
cuisines, it is astonishing that that luxury continues to be defined by some by Western standards.
Sustainable tourism can in fact pay back for itself and there is a sound business case for it. In some instances,
it may involve higher initial investments for example in the installation of water or energy-saving devices.
Technology may also be difficult to acquire, particularly for small businesses. But the major challenge comes
from the fact that mindsets need to be changed.
Fortunately, there is increasing realisation of the errors of the past and many individual hotels and chains have
very successfully and profitably implemented corrective measures.
It is a more difficult task to persuade individual tourists. Many are simply over-awed by the exotic or foreign
nature of their surroundings and dietary choices and demand an ambience and cuisine which is akin to home,
however unsustainable that may be in the host country. Others may feel that they are on a well-earned vacation
and are thus entitiled to luxury standards of consumption. Measures such as UNEPs Green Passport initiative
may help in small ways but there is no quick-fire solution. The onus must rest on the suppliers of tourismrelated services to simply stop offering what is clearly unsustainable and communicate the intentions properly
to their clients.
Tourism businesses are sometimes quite reluctant to be pioneers in implementing sustainable practices, since
these often require up-front investments which take time to recoup. Providing subsidies or tax breaks for such
investments is a potential way of overcoming this reluctance but it should be seen as an approach that is
applied only when the private sector is really committed to contribute to sustainable tourism.
Country Comparisons and the need for Impact Assessment
Inter-country comparisons of the impact of sustainable tourism are not always meaningful. Comparisons
between developed and developing countries are particularly irrelevant because of the different ways that
nations have grown. Issues of varying definitions and data collection methods between countries further
complicated inter-country comparisons, so it is probably best that data is used to ascertain trends or to
compare a countrys internal performance against its own in the past.
The level of implementation of sustainable practices varies significantly within countries and the relative
importance of the different elements varies even more. For instance, waste minimisation is of critical importance
to a small island that simply does not have the land area for sanitary landfills. In a water-stressed or desert area,
the critical need would be water conservation. Instead, each country (and possibly areas within each country)
needs to look at the impact that tourism has had on society, the environment and the economy.
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Box 11:6 Society
Part B
What is the level of employment generated by tourism direct and indirect?

What is the quality of that employment are locals being employed for menial tasks or are they also
represented in higher management echelons?
Is training provided to local staff to enhance skills and upward mobility?
Are wages and working conditions in conformity with the law and with the practice of the industry/
the business elsewhere?
Is land, water or any other resource being utilised at the expense of the local community?
To what extent are local materials and foodstuff used in the establishment and operations of the
business?
Do the operations encourage local arts, crafts?
Is the local heritage particularly buildings, monuments, and archaeological and natural sites unharmed?
Is the traditional right-of-way and access being denied?
Are local value systems and traditions accorded due respect? In particular, are women and children
given due respect and consideration?
Has tourism led to the creation of undesirable activities such as prostitution, and is the local
community being exposed to unhealthy or undesirable practices?
Box 11:7 Environment:
Has tourism caused any damage to the flora and fauna of the region?
Has any building or construction caused an unnatural diversion of rivers, streams and waterways?
Is the land, air or water source (including underground aquifers) being polluted by effluent discharge
and the use of toxic chemicals?
Are exotic and non-indigenous species of flora being planted, endangering local/endemic species?
Does a proper waste management system exist to cope with tourist arrivals?
Do tourist establishments practice water and energy-conservation measures?
Box 11:8 Economy:
How much revenue has been generated by tourism (international and domestic)?
How much of the revenue is retained within a) the country and b) within the areas?
How has the income been distributed? Does the local community retain a fair share or does it
accrue largely to outside investors?
Is the income likely to be sustained or is it transient?
Is it likely to invite additional investment in legally permitted activities?
Are investments coming in from legitimate sources?
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Further reading 11
Advancing Sustainable Tourism A Regional Sustainable Tourism Situation
Analysis is a series of publications promoted by the Global Partnership for Sustainable
Tourism. In 2013 new publications were released Asia-Pacific, Southern Africa and
the Caribbean, each providing an analysis of the sustainability of tourism within the
region.
Global Sustainable Tourism Council 2013, Advancing Sustainable Tourism A Regional
Sustainable Tourism Situation Analysis, GSTC.
UNEPs Green Passport initiative provides tips to travellers on green tourism with
information to read before, during and after you travel. It is a source of information on
how to influence tourists and educate them about responsible tourism.
United Nations Environment Programme 2012, Green Passport Holidays for a living
planet. Available from : <www.unep.fr/greenpassport>. [September 15 2012].
Making Tourism More Sustainable A Guide for Policymakers is essential reading

for policymakers, providing practical policy advice for adopting sustainable tourism
practices.
UNEP-WTO 2005, Making Tourism More Sustainable A Guide for Policymakers,
UNEP & WTO, Paris.
The Global Sustainable Tourism Council for Hotels and Tour Operators website
provides a list of the Principles of the GSTC criteria, the minimum criteria that any
business or tour provider should aspire to reach.
Global Sustainable Tourism Council 2012, Global Sustainable Tourism Criteria for
Hotels and Operators. Available from: <http://www.gstcouncil.org/resource-center/
sustainable-tourism-gstc-criteria/criteria-for-hotels-and-tour-operators.html>.
[September 15 2012].
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Part B
Lewis Akenji
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 177
12 Fiscal Reforms
13 Redefining Education for SCP
14 Energy Efficiency
12
Fiscal Reforms
Key Points
There are a number of economic instruments available for SCP.
These include cap and trade, polluter pays, ecological budget and
tax reform and removing subsidies.
Ecological budget and tax reform can generate multiple dividends
(environmental, employment, efficiency).
This chapter considers opportunities for fiscal reforms for SCP. It highlights the benefits and challenges of four
approaches, namely cap and trade, special taxes, ecological budget and tax reforms and removal of subsidies.
It highlights the benefits and challenges for each of the approaches and discusses opportunities for their use
in developing and transition economies.
Ecological budget and tax reform for SCP

Since the end of the 20th century there has been evidence of a changing economic context in which the
price of natural resources has been rising and becoming increasingly volatile. This suggests that resource
efficiency should become a priority of national governments policy planning and should also play a major role
in strategies in the private sector. At the same time, climate change driven by rapidly increasing global CO2
emissions has also become an urgent political topic, indicating that significant efforts are needed to curb global
emissions. Comprehensive policies for increasing resource efficiency and reducing emissions are needed to
deal with rising natural resource prices and to mitigate CO2 emissions.
Ecological budget and tax reform is a means of steering economies towards greater resource efficiency, lower
emissions and sustainable consumption and production. Such economic instruments can shift production
costs away from labour towards natural resources and emissions. Economic instruments can be a cost
effective and efficient way of changing incentives to guide consumers and producers towards lower resource
and emissions intensity in their daily consumption, and in the way production processes in businesses are
organised. There is a suite of economic instruments available to achieve this including:

Cap and trade systems for resources and emissions.

Special charges based on the polluter pays principle.
Ecological budget and tax reform.
Removing subsidies for large consumers of, for example, energy and electricity.
If applied correctly and often in combination with command and control approaches, economic instruments
can help to:
Increase prices of environmentally damaging goods and services, while increasing the returns for
more sustainable approaches - leading to more sustainable production and consumption patterns.
Reduce compliance costs by providing flexibility to polluters or users of natural resources to choose
the most cost-efficient and environmentally effective measures.
Minimise the overall cost of achieving a given pollution control target.
Create dynamic incentives for investments to innovate and continually improve environmental
technology, generating both environmental and financial benefits (win-win).
Allocate property rights and responsibilities of firms, groups, or individuals so that they have both the
incentive and the power to act in a more environmentally-responsible manner.
Raise revenues that can be used for environmental purposes or for social benefits (e.g. decreasing
income taxes).
Among these economic instruments, ecological budget and tax reform appears to be a far-reaching and
advantageous instrument. It can be designed in a cost neutral way, so as not to increase the total tax burden.
This would allow the costs of natural resources and emissions to be increased dramatically, by up to 5%10%
of GDP. As overall production costs would remain stable, the likelihood of opposition from businesses should
be substantially reduced, and business leaders could focus on process innovation.
A well-designed ecological budget and tax reform can yield a triple dividend of reduced environmental
pressures and impacts, increased employment and growth in efficiency. It could potentially also have positive
distributional effects.
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Policy options for fiscal reform
Increasing the productivity of natural resources and energy
Part B
During most of the 20th century, the price for natural resources (energy, water, metals and food) was low because
of abundant endowments and very affordable extraction methods. Many reserves offered easily accessible, highgrade materials. As a result, the cost of natural resources for production was only around 5% of the total input
costs and was therefore ignored by most businesses and governments. Most of the effort and investment went
into increasing labour productivity, very much in line with standard economic theory, at the cost of a wasteful
approach to natural resource use and ever increasing amounts of waste and emissions. There is ample evidence
that the time of low prices for natural resources has ended. Over the past ten years the prices of many natural
resources have grown substantially and have also become increasingly volatile. This has been driven by the
growth dynamic of Asia-Pacific and the large amounts of natural resources that have been required to fuel the
industrial transformation in many developing economies, most notably in China. Urbanisation and industrialisation
processes have altered resource use patterns and an emerging middle class is engaging in new lifestyles and
consumption behaviours. In aggregate, this has underpinned the growth dynamic of natural resource use and
emissions across the globe.
The large increases in consumption of food, energy, water and metals resulting in environmental and resource
consequences over the past decade can be dealt with in two ways. There must either be a drastic reduction
of natural resource use through reduced consumption of goods and services, or resource efficiency needs to
increase. The potential for resource efficiency gains is indeed very large in many parts of the economy, in particular
for housing and construction, mobility and transport, food and agriculture as well as in heavy industries and the
manufacturing of consumer goods.
In some areas, resource efficiency gains could be as large as 80%. This would involve large improvements in
energy efficiency, switching to low carbon renewable fuels, heat and power recovery, changed feedstock, product
innovation and large scale improvements in material efficiency such as through lightweight materials in the building
sector, and reuse and recycling systems. Achieving these changes will require moving from labour productivity
to resource productivity, encouraged and steered by economic instruments. In the following four sections such
instruments are discussed and it is argued that ecological budget and tax reform in competitive markets may have
great capacity for steering economies towards sustainable consumption and production.
Cap and trade systems for resources and emissions
Cap and trade systems are most useful when a goal for natural resource use or emissions reduction has been
established based on scientific analysis, such as for greenhouse gas emissions. In such a case the amount
of tradable permits would establish the desired consumption and emissions levels of a natural resource or an
emission, establishing the cap. Permits would be traded on the market. The market mechanism of supply and
demand would result in a price which each consumer or emitter would have to pay, in addition to the cost of the
raw material procured. More ambitious goals for reducing natural resources or emissions would be achieved by
reducing the number of permits further leading to additional price increases. Businesses and consumers would
be encouraged to implement resource efficiency measures to offset the price rises. This would lead to innovation
in production technologies, investments in green infrastructure and changes in consumption behaviour.
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CAP
Left over
Allowance
for sale
Excess
CO 2
CO 2
Trade
Allowances
Money
Greenhouse gas emissions price setting by tradable permits, including a cap for total emissions, is one of
the most important policy options for mitigating climate change. It is both a cost effective and efficient way of
influencing the behaviour of businesses and households and guiding them towards resource efficiency and low
carbon strategies. There are, however, a number of institutional issues on how to best design and implement
a cap and trade system. Most importantly, policy needs to deal with the fact that there will be winners and
losers from the introduction of such an economic instrument and that there will be a need for compensation
for high emitters during a transition period, and for low income households which will be facing price rises for
electricity and transport.
There are numerous challenges in designing and implementing a cap and trade system.
First, a compromise on an overall reduction goal for emissions needs to be achieved and there will
be groups interested in more or less ambitious reduction goals. In practice, this may mean that
influential players who have an interest in less ambitious goals may prevail in the discussion. If this
occurs, political negotiations might result in creating a toothless instrument that does not have the
required capacity.
Secondly, the level of compensation is an important design criterion. If for example, the level of
compensation for large polluters is set too high or the transition period is too long, this may adversely
affect the price of permits and may lead to a very low price with little capacity for steering the
macroeconomic changes required. On the other hand, during periods of economic booms the price
of permits could rise unpredictably, threatening investment and disproportionately increasing the risk
for businesses.
Thirdly, the concept of tradable permits for emissions relies on readily available, accurate and
credible emission accounts of governments and businesses, which can only be expected for some
emissions, some natural resources and for some countries that have advanced statistical reporting.
Finally, since many of todays economic processes are globalised, a system of tradable permits at
some point would need to be implemented internationally. There are likely to be trade-offs between
the optimal allocation instruments at national and international levels, which would need to be
resolved.
Despite these challenges cap and trade systems have great potential, especially for reducing CO2 emissions.
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Box 12.1: Existing, emerging and potential emissions trading schemes

There are a number of existing, emerging and potential emissions trading schemes around the world. They
differ in terms of coverage between regional, national and sub-national programs. The programs are also in
varying stages of development with a number already implemented, some with implementation scheduled
and others currently under consideration.
Implemented: California, Quebec, European Union, Switzerland, Kazakhstan, Australia, New Zealand, and
the Regional Greenhouse Gas Initiative/RGGI (North East and Mid Atlantic USA)
Under consideration: Chile, Brazil, Turkey, Ukraine, China, Japan and the Western Climate Initiative (British
Colombia, California, Manitoba, Ontario and Quebec).
Source: (World Bank 2013).
Special charges based on the the polluter pays principle
Part B
Implementation scheduled: Republic of Korea
An important means of creating economic incentives for resource efficiency and lowering emissions is the levying
of charges. Charges are even more appropriate when the income raised is earmarked for remedial action in
the context of the resource consumption or emission. Charges are effective when the damage is thoroughly
manifested, the actor that caused it can be unambiguously identified, and measures for repair and prevention can
be based on existing technologies and procedures. In other words, the polluter pays principle is most effective for
end-of-pipe technical solutions.
Because of these conditions, the overall economic steering effect of charges may be limited. It could include user
charges for waste collection, water or sewage treatment. If the government organises the investment through
private businesses that have a record in cleaning up, or an interest in reducing future resource use and avoiding
waste and emissions, it could become more effective. This would create a carrot-and-stick approach.
The downside is that charges are often difficult to implement and to police and are practically ineffective in cases
where the burden of proof cannot be met and the polluter cannot be identified. Whilst in principle the notion of the
polluter pays is very useful, the applications and the overall economic effect are limited.
Ecological budget and tax reform
Ecological budget and tax reform (EBTR) is a very different economic policy. The primary objective of the EBTR
is to stimulate economic subjects to such behaviour that leads to a reduction in environmental damage and its
impacts on public health. In short, EBTR is the process of shifting the tax burden from employment, income and
investment, to pollution, resource depletion and waste. Ecological budget and tax reform puts taxes on fossil
fuels and nuclear energy, on strategic raw materials such as metals and industrial minerals with a focus on those
materials which are likely to end up as toxic pollutants or hazardous waste and on the actual emissions and waste.
At the same time, other taxes would be reduced making the budget and tax reform revenue neutral and therefore
not increasing the overall fiscal burden for businesses.
Because of the revenue neutrality achieved by shifting taxes from income and labour to natural resources and
emissions, one should not think about green taxes but ecological budget and tax reform. The steering effect of
an EBTR is such that the cost of natural resources is increased and the cost of labour is reduced, which creates
an incentive for investment in resource productivity. In other words, through the EBTR the input factor, natural
resources, become more expensive and the input factor, labour, less expensive. If the principal of revenue
neutrality is observed and the EBTR is introduced slowly over a couple of decades, quite high ecological taxes are
possible and they may in fact attain a level of 5% to 10% of GDP (Weizsaecker & Jessinghaus 1992).
The higher costs of natural resources will justify business investment into green technologies and eco-efficiency
of production. As prices are passed on through the whole economy, the EBTR will also lead to higher prices for
consumers of such goods and services that rely on a large amount of primary inputs. Price increases for electricity
and mobility will disproportionally affect low income consumers. In order to avoid such undesired effects the EBTR
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must be accompanied by compensation payments to low income households and disadvantaged groups.
Compensation could be organised through the tax system or may involve direct payments for such households
that dont pay tax at all. Another way of compensating lower income groups and small businesses, which have
less potential to invest in resource efficiency, could be to reduce value added taxes.
The fact that ecological taxes could bring in as much as 5%10% of GDP without damaging the economy
as a whole, but with a large overall steering capacity for sustainable consumption and production, creates a
compelling argument for an EBTR. On the other hand, introducing an EBTR would be a fundamental economic
reform and would require large support in Parliament, from the business community and from society at large.
Credible answers to a number of important questions need to be provided. These questions may include:

What level of ecological taxation can be justified based on the polluter pays principle?
Can the desired steering effect be achieved by raising the cost of natural resources and emissions?
At which level of taxation can an optimal outcome for resource efficiency be expected?
What would be the optimal timing for such a reform?
Which other taxes should be lowered to achieve revenue neutrality?
How can undesired distribution effects be avoided or compensated?
Answering these and other important questions in relation to the introduction of an EBTR requires national
dialogue and political bipartisanship and would need to get all important players on board. It would unleash
creativity, create a culture of innovation and reset the economic context to favour resource productivity and an
economic system that relies less on natural resource use and emissions than our current economies.
Removing subsidies for large consumers of energy
For many decades, governments have subsidised the consumption of electricity, coal, water, and other natural
resources. Aluminium smelters and other energy intensive industries have obtained major price concessions,
making primary resources very cheap. This has created a disincentive for innovation in resource productivity
and for lowering the emission intensity of production. Another example is agriculture, a sector that has long
received large subsidies for energy and fertiliser use in many countries. In addition, many countries have
provided generous subsidies or tax breaks to car commuters, creating a perverse incentive towards increased
use of private cars and reducing the competitiveness of public transport. Whilst these subsidies may have
created a short-term economic advantage, they are also very costly, slowing the pace of technological
development and hampering innovation. These unhelpful subsidies should be removed in order to harmonise
ecological and economic goals and enable sustainable consumption and production.
How will an EBTR benefit developing countries
Very often, an EBTR is seen as a strategy for wealthy OECD countries, with little or no potential for developing
countries. There are a number of arguments for the early introduction of an EBTR in countries that have a large
manufacturing base and show the emergence of a wealthy middle class, pursuing resource and emissions
intensive lifestyles and consumption patterns. A number of developing and transitions economies have become
net importers of many strategic natural resources including crude oil, metal ores and industrial minerals and
will be confronted with increasing costs for sourcing these imports. An EBTR in the OECD and in a number of
developing countries could reduce global natural resource demand and ease the pressure on resource prices
thereby making them more affordable with positive effects on the balance of trade for developing economies.
Secondly, investment in these countries could be directed towards innovation in sustainable consumption and
production, especially with regard to urban infrastructure such as public transport and energy and water efficient
housing, allowing for much reduced energy demands for heating, cooling and transport. Such investments in a
green economy would have lasting effects for many years to come. Economic incentives to steer investment
away from the old industrial model towards a green economy would assist in achieving human wellbeing at
much lower environmental costs, with positive effects on employment and efficiency.
A triple dividend of ecological budget and tax reform
It is generally accepted among economists that when the consumption or production of a good or service
results in a negative external effect, i.e. one that is not reflected in the price of the good or service, then social
welfare can be improved by imposing a tax on the good or service (Ekins 2000). Similarly, where there is an
environmental externality such as greenhouse gas emissions or the consumption of primary natural resources
then the imposition of a tax, set at the right level, will lead to an environmental dividend. If there are possibilities
for abatement of the externality at a cost lower than the tax levied, some abatement will take place. This will
change the output/externality relationship and the output may grow while the environmental dividend, e.g.
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lower emissions and resource extraction, will also occur.

If the revenues of the environmental tax are used to reduce a tax on labour or to subsidise wages in a part of the
labour market where wages are inflexible, this may lead to a rise in employment, i.e. an employment dividend
which will also enable increased output. Employment dividends also arise through a shift to labour intensive
production and consumption, enabled by the reduced price of labour relative to the taxed environmental inputs.
Box 12:2 Common objections to ecological budget and tax reform

Despite the evident advantages of an Ecological Budget and Tax Reform (EBTR) there are a number of common
objections against this policy instrument. The most common criticism is that ecological taxes, if they were effective,
would destroy the very basis of their revenue yield. An effective EBTR would reduce natural resource use and
emissions and hence reduced use would lead to a lower tax income. Natural resource prices would decline because
of lower overall demand and the steering effect would be reduced. Hence green taxes are either unacceptable for
the finance or for the environment department. This challenge can be addressed by introducing a yearly increase of
the ecological tax while other taxes would be reduced by the same amount to achieve revenue neutrality. Thereby,
revenues for the ecological tax would continue to grow and the steering effect would also grow accordingly.
Part B
There is a good likelihood that an efficiency dividend will arise from using environmental tax revenues to reduce
other distortionary taxes, but there is also the possibility that environmental taxes may exacerbate rather than
alleviate existing tax distortions. This would indicate that optimal environmental tax rates would be below levels
suggested by the environmental dividend alone.
Another common objection from social policy is that the EBTR would increase inequality because indirect taxes
would favour high-income groups and disadvantage lower income earners who have to spend a larger share of
their household budget on basic consumer items. Lower income groups could be compensated by a reduced
value added tax or by direct compensation payments.
The main argument spearheaded by economist Lawrence Goulder (1995), however, has been that there is no
double divided of reduced costs and environmental protection through an ecological tax reform. Goulder and
colleagues argued that a positive second dividend only exists if the excess burden of the total tax system
including the excess burden of the environmental tax declines. For instance, Bovenberg and de Mooij (1994)
have argued that environmental taxes typically exacerbate, rather than alleviate, pre-existing distortions even if
revenues are employed to cut pre-existing distortionary taxes. Increasing a narrow-based green tax and reducing
a broad-based tax like a tax on labour income will typically increase the overall distortion of the tax system. Hence,
they say that the second dividend is negative and the double dividend hypothesis fails.
The argument put forward by Goulder has contributed to stagnation in interest in ecological taxes. It is important
to note that the argument of Goulder has been highly theoretical disregarding the contextual factors that would
make an EBTR work. Firstly, even if were true that there is no second dividend the positive steering effect of pricing
of externalities would still occur and would be highly beneficial in itself. Secondly, there is a need for practical
experience with EBTR and similar approaches that would be beneficial for deciding on the additional measures
that would come with an EBTR. In the first round of the European (Emission Trading Scheme) ETS the ability of
auctioning was very limited with a minimum of 95% grandfathering. This has since changed with a much more
flexible system allowing, for auctioning to a much greater extent. It certainly needs those practical experiences to
further improve such market based measures such as an EBTR or an ETS.
Box 12.3: Trialing emissions trading in China

Inspired by emissions trading to provide emissions reduction incentives in the most affordable way for
businesses in Europe, the Chinese government is trialing a market-based approach to reduce carbon
emissions. Seven regions have been chosen to implement pilot projects: Guangdong, Hubei, Beijing, Tianjin,
Shanghai, Chongqing and Shenzhen. These regions represent different socio-economic conditions, which
will inform the trial. The energy efficiency and carbon emissions intensity targets to be achieved by 2015 are
ambitious and lie a little below 15% reductions. The Chinese Government plans a project-based voluntary
emissions trading scheme (ETS) starting in 2012, moving to a mandatory ETS in 2013, an inter-provincial
ETS in 2014 and a nationwide ETS in 2015 as part of the 13th Five-year development plan. (Belevrat, 2011.
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Further reading 12
Environmental tax reform: does it work? A survey of the empirical evidence
reviews the practical experience and available modelling studies on environmental tax
reform. It concludes that when environmental tax revenues are used to reduce payroll
taxes, and if wage-price inflation is prevented, significant reductions in pollution, small
gains in employment and marginal gains or losses in production are likely in the short
to medium term, while investments fall back and prices increase. Results are less
certain in the long term. They might be more positive if models selected welfare instead
of production indicators for the second dividend, and if several important variables,
such as wage rigidities and the feedback of environmental quality on production, were
factored into simulations.
Bosquet B 2000, Environmental tax reform: does it work? A survey of the empirical
evidence, Ecological Economics Vol. 34(1): 1932.
Mapping Carbon Pricing Initiatives maps existing and emerging carbon pricing
initiatives around the world. It examines the varied and interesting techniques that
many countries, including developing nations, are using to make their carbon initiatives
more robust that what has been seen historically.
World Bank & ECOFYS 2013, Mapping Carbon Pricing Initiatives, World Bank,
Washington.
The Use of Economic Instruments in Environmental Policy: Opportunities and

Challenges aims to provide policymakers, especially in developing countries, with
practical guidance on deciding which types of EIs are likely to work in addressing
specific environmental problems.
United Nations Environment Programme 2004, The Use of Economic Instruments in
Environmental Policy: Opportunities and Challenges, UNEP.
Green Economy report The Green Economy Report is compiled by UNEPs Green
Economy Initiative in collaboration with economists and experts worldwide. It
demonstrates that the greening of economies is not generally a drag on growth but
rather a new engine of growth; that it is a net generator of decent jobs, and that it is
also a vital strategy for the elimination of persistent poverty. The report also seeks to
motivate policymakers to create the enabling conditions for increased investments in
a transition to a green economy.
UNEP, 2011, Towards a Green Economy: Pathways to Sustainable Development and
Poverty Eradication, www.unep.org/greeneconomy
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Part B
Shutterstock
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13
Redefining Education for SCP

Key Points
There are a number of challenges and opportunities for knowledge
development and learning towards SCP.
Evolving and incresing knowledge and learning competencies are
required to fulfil the SCP challenge.
Programmes and processes already exist that are helpful in initiating
required learning processes.
Policy measures provide an opportunity for upscaling and
mainstreaming necessary educational initiatives.
This chapter has been written with the intention not only to highlight the well-understood role of education
in facilitating development of SCP systems but, most importantly, to argue for redefining the whole notion of
education. We need to go beyond designated processes (e.g. training activities and educational programmes)
and places (classroom and out of class areas where learning explicitly takes place) and develop and test
new actions for reducing social, environmental and economic vulnerability. Ultimately, it demonstrates that the
challenge of learning goes beyond the domain of formal educational systems and programmes, touching all
aspects of life, all sectors and every region.
The role of education in the transition to SCP

Challenges of SCP Education
The importance of consumption and production patterns for influencing the state of the environment and
livelihood has long been recognised. A number of policy documents and reports dealing with the issue at
the national and international levels have emphasised the importance of education for de-coupling material
consumption and growth, generating livelihood opportunities and encouraging more sustainable lifestyles.
With such universal recognition of the role of education, there are however, some challenges related to putting
various learning processes in place. Such challenges, that are not exclusive attributes of the educational domain,
relate to the changing role of knowledge in society in general and most importantly, to aspirations to move
towards more sustainable economies (Box 13:1). Development of successful educational responses requires
transformation of the educational system itself making it more attuned to societal challenges, developing skills
for often very different learning strategies and continuously engaging with critical SCP stakeholders.
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Box 13:1 Challenges of learning

Understanding the impact of education has long been the major challenge for giving it adequate place among
planned interventions. When education is not directly concerned with development of easily defined skills (e.g.
creativity, ability to deal with rapid change or engage with others required for SCP systems), manifestations of
learning impacts - both in terms of time and space - are difficult to capture. Today, the dominant research on the
effect of the educational systems and approaches related to sustainable development clearly favours impact on
the individuals (as opposed to organisations and communities) and formal education (as opposed to non-formal
and informal learning).
The notion of sustainable development (and linked to it understanding of the frameworks for SCP systems)
is changing, which leads to the changes in development directions. If consumption-production systems are
to support resilient communities, they have to be designed in a manner that allows constant innovation and
adaptation while accepting that mistakes will be made along the way.
Part B
Another challenge comes from the features of todays reality. In the modern world characterised by accelerated
changes, lack of predictability and multiple economic, financial and environmental crises, different forms of
knowledge and learning become a necessity. Even sectors that for a long time adhered to traditional ways of
doing things, find themselves in need to adapt to the constant demand for (at least partial) transformation. With
often dramatic modifications of the market, political, social and production systems, the task of knowing and
learning present an ever growing part of every-day life.
In developing SCP systems, the major SCP stakeholders, including policymakers, are facing the challenge of
reacting to the inflow of seemingly endless new knowledge. As a result, there is a need for constant identification
of ongoing knowledge processes, understanding ways of productive engagement with various knowledge
holders, testing and evaluating impacts of resulting innovations. This presents demands for new competencies
and for educational systems that facilitate such competencies.
Development of competencies for SCP calls for practices and, ultimately a system, which overcomes
compartmentalisation of responsibilities. Lack of coordination between national policies often results in situations
where, for example, green actions are not complemented by skills development response and as a result, do
not reach their potential (ILO 2011). On the other hand, lack of enforcement of SCP related policies, such as
environmental legislation, precludes demand for green jobs or leaves qualified graduates unemployed (ibid.).
In search of competencies for SCP systems what learning we seek

Working with the challenges resulting from current consumption and production while leading development of new
SCP systems, needs to be guided by competencies related to values, attitudes, knowledge, skills to apply such
knowledge and ability to engage in required partnerships.
Critically so, complexity of the SCP area requires broadening learning orientation, first, from understanding of the
problem, analysing it, identification of solutions (linking rhetoric and practice), focusing on the proposed solution
to understanding the consequences of such an intervention (broadening the scope of the system). While this is
absolutely critical for some areas, such as policy making and strategic development, it remains relevant for any
field of work.
As a result, critical prerequisites of learning include the abilities to systematically examine real life situations,
relating them to strategic actions while engaging transdicsiplinary knowledge and keeping long-term perspective.
These required characteristics, that in their most systematic form could be attributed to education for sustainable
development (ESD), have important implications. They point out that:
Learning for SCP takes place in a variety of ways made up of formal education (engaging schools,
higher education institutions, educational authorities at the regional and national level, communities)
and outside (youth and women groups, civil society and faith organisations, museums, media, business
enterprises, agricultural extension authorities, and others).
Any partner involved at any stage of the life cycle, along the supply chain, in the local communities,
among regulators needs to develop competencies that go far beyond technical knowledge of the field.
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Any professional or member of the community who aspires to contribute, through personal or
professional actions, into shaping of SCP systems needs to become a non-formal educator
themselves, therefore needs to be attentive to the competencies required for such a role.
Box 13:2 DESD and ESD
Following discussions and agreements during the Johannesburg Summit, the United Nations General
Assembly, at its 58th Session adopted a resolution to start the Decade of Education for Sustainable
Development (DESD) (2005-2014). UNESCO was designated to be the lead agency to promote and facilitate
the Decade. The DESD aims at encouraging governments to include ESD into their educational systems,
strategies and development plans.
ESD goes beyond a single subject of discipline. It is, in its broadest sense, education for social transformation
with the goal of creating more sustainable societies. ESD touches every aspect of education including
planning, policy development, programme implementation, finance, curricula, teaching, learning, assessment,
administration. ESD aims to provide a coherent interaction between education, public awareness, and
training with a view to creating a more sustainable future (UNESCO 2012).
Education and learning in the critical areas of production and consumption

Many areas of SCP, often overlapping, indicate challenges from the perspective of knowledge development.
The following section is by no means exhaustive, but addresses some of the key challenges in the critical
areas of sustainable livelihoods, consumption, production, market change and encouraging sustainable
entrepreneurship.
Encouraging livelihood opportunities
Sustainable livelihoods are concerned with the capability to earn income, through formal market and nonmarket activities, that is sufficient for maintaining (or increasing) quality of life and reducing vulnerabilities.
As such, livelihoods cut across issues of consumption and production, private goods and commons and
different forms of capital. Education and innovation are necessary for developing an understanding - by
individuals and communities - about assets available to them, familiarity with livelihood strategies, risks
associated with each strategy and skills necessary for undertaking productive practices. From the perspective
of policymakers, ongoing learning would be required for identification of the critical factors that either facilitate
(e.g. policy frameworks that encourage livelihood practices that secure ecosystem services and wellbeing of
communities) or impede desired livelihood strategies (e.g. corruption, policies disregarding interests of currently
disenfranchised).
Aspirations to develop new understandings, skills and attitudes for the transition towards greener, more
sustainable markets, will contribute to developing a better quality of life for traditionally low-skill workers. By
breaking the cycle of low skill jobs and poor income for workers, the livelihood choices of those who develop
these skills would increase.
Evan Schneider
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Box 13:3 Sustainable livelihoods in Guyana
Often, the call for more sustainable production and therefore educational processes to facilitate it, come from the
increasing pressure on resources supporting livelihood practices. Resulting emigration or immigration demands
total or partial restructuring of occupations and ways of production. For example, loss of soil fertility in some areas
could cause an influx of labour from these areas to others, potentially with sensitive ecosystems.
Part B
A study commissioned by The North-South Institute (Griffiths & Anselmo 2010) into viable livelihood alternatives to
mining for the Amerindian communities in Guyana found that a diverse number of enterprises working in farming,
tourism, craft and community-based natural resource management need to be developed. To develop these
livelihood activities, there is a need to secure land rights, address market barriers and develop critical business
and technical skills. Facilitation of these skills, however, has to be done with understanding that indigenous
communities themselves are uniquely knowledgeable about their traditional practices (farming, handicraft,
traditional health, etc). Development of new competencies needs to be facilitated through new models of
learning structured around principles of innovation, relevance to a specific situation and social and community
engagement. Learning has to happen also on the side of stakeholders of the Ameridian communities, including
policymakers, development agencies and commercial entities.
Education for sustainable consumption

Linking knowledge with change practice
For sustainability-aware consumers (a result of formal and/or informal education) to become a part of the SCP
system, information provision alone is not enough. Consumers need to know how to put knowledge into practice.
This is particularly challenging as it could demand engagement with partners who may not yet be interested or
capable to suggest solutions to the challenges of private or organisational consumption.
In the absence of dominant SCP practices inside or outside markets, consumers and citizens need to learn how
to contribute to existing good practices or to co-invent new SCP systems together with other actors. To act
responsibly, consumers and other critical stakeholders require competencies that enable them to understand
various positions and perspectives, figure critical factors that affect alternative directions of development, be able
to evaluate the results and undertake further steps on the basis of such assessment.
Generally, engagement of multiple stakeholders also in search of more sustainable lifestyle options is important, as
change practices by individual actors may encounter resistance stemming from traditional or cultural practices in
society. Collective learning grounded in local heritage, scientific information and analysis of different options might,
as it has been shown by the example of RCE Tongyong (Box 13:4), be successful.
Box 13:4 Working across sectors: Reducing food wastage in The Republic of Korea
Food wastage is a large problem in The Republic of Korea. Regional Centres of Expertise on ESD (RCE)
Tongyeong, brought together several partners under the Clean Plate Movement. The Movement begun
in schools, universities and later included other organisations outside of the educational sector. It brings
together knowledge about waste and energy systems, green consumption, food security, farming practices
and international food markets along with practices for avoiding food waste.
Deeper engagement - looking for alternatives
Sustainable consumption is a topic relevant for individuals, public and private sector. That is hardly surprising as
new, more environmentally and socially benign consumption requires an understanding of available alternatives,
their impact along the supply chain and ideas of how the consumption system could evolve and how learning
would support such evolution.
Forming conditions for sustainable lifestyles presents a serious challenge, as long-term changes in behaviour
may be difficult to achieve by short term interventions. Such interventions, in the form of campaigns (e.g.
engaging celebrities or opinion leaders), may contribute to drawing attention to the problems. However, accepting
responsibilities and most importantly, linking them to actions requires a set of policies that provide structure and
incentives for securing more sustainable lifestyles. It also requires different sets of educational measures rooted
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in the local socio-cultural contexts and engaging learners as researchers or co-developers of practices. There
is a need to start changing processes based around local resources and capacities, learning throughout the
process.
Box 13:5 Consumption - looking for likely alternatives
Sustainable lifestyles in local communities across the globe
Launched in 2005, the Looking for Likely Alternatives (LOLA) project of the Consumer Citizenship Network
is a tool for discovering new sustainable solutions for lifestyle choices in local communities. The learners and
the teachers who are being assisted with the materials for identifying, describing and presenting cases, give
visibility to new models of SCP. They further discuss the identified examples with families, neighbours and
friends and by doing so initiate broader social learning.
Realising change in South Africa
Partners of the RCE Makana and Rural Eastern Cape (South Africa), including Rhodes University, participate
in development of change practices that contribute to improvement of quality of life while capitalising on
locally available resources. The overall premise of the partners is to shift from reliance on awareness and
knowledge transfer (learning to change) towards direct engagement of people and organisations into
learning practices (changing to learn). Small scale, low cost projects of the community range from support
for the local Saturday markets, to development of small cleaning and composting businesses.
Consumption and livelihood
When looking at the notion of sustainable consumption, one ought to look at the meaning that is associated
with it. It is critical that in addition to the focus on the environmental dimension, consumers (private and
organisational) are able to favour the notion of justice and quality of life for all. It is also important to encourage
learning about consumption that is not limited to those who can afford it many educational processes today,
especially those unfolding around green technologies or premium green products, might not be accessible for
the less economically privileged. Supporting practices that are accessible for all, while increasing quality of life
and livelihood opportunities along the supply chain, would need to become a priority of learning programmes.
While some interesting examples of such practices emerge in various corners of the globe there is still a need
for more systematic actions engaging economically or socially underprivileged communities as part of the
supply chain.
Box 13:6 Consumption and livelihood
In approaches developed to encourage participation of the economically poor in the market activities (Hart
2005) a common principle is to emphasise their role as potential entrepreneurs and consumers. Their inclusion
in the supply chain may require the development of new business models that not only deal with the question of
what kind of a product or service is a priority for the poor, but also how to satisfy their consumption needs while
facilitating their livelihood options. Numerous examples exist where corporations have engaged with vulnerable
communities to provide essential products and services, accompanied by learning and training opportunities for
both the companies own staff and members of the community.
Increasing the sustainability of cement across Sri Lanka and Mexico
Holcim Lanka the leading provider of cement in Sri Lanka established the Affordable Housing Initiative: House
for life, to provide housing for the countries poor. The initiative engaging the manufacturer, Grameen Bank,
National Building Research Organization and vulnerable families encourages the use of local sustainable building
materials, quality durable construction and livelihood considerations such as including shop fronts in the houses.
The initiative required a high degree of informal collaborative learning and training.
Apasco, the Mexican subsidiary of Holcim, not only provides affordable cement prices for the poor (by eliminating
middleman in the distribution chains), but also provides learning opportunities for do-it-yourself building
techniques and improving construction safety. Learning occurs at both the level of the community, as well as
within the company, where lessons of Mexican success are explored to be translated across other regions.
Education for sustainable production

Ambitions for more sustainable production practices and aspirations for greener and more sustainable industries
calls for development of professional and generic skills. Institutionally, the transition to more sustainable
economies often means a decrease (with potential disappearance) of some industries, evolutionary
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improvements of production practices and product design in other sectors, emergence of new, greener, industries
and productive activities that evolve outside of traditional markets.
Box 13:7 National Cleaner Production Centres (NCPCs)
From the educational and learning perspective it means great changes in the ways education and scholarship are
conducted, including:
New skills required by the new market preferences (see next section).
New forms of education for industry employees including more sustainability-oriented technical and
vocational education and training (TVET) as well as ongoing training within companies.
New forms of learning across the supply chain with attention given to the empowerment of suppliers and
customers rather than more traditional compliance inspections.
New forms of cross-sectoral co-engaged learning at the level of local communities across publicprivate or inside public domains.
New forms of scholarship that, while cutting across disciplines, keep in focus practical engagement of
change.
Part B
For a number of decades various initiatives have provided training in the area of more efficient and sustainable
production. One of the most significant examples is that of NCPCs supported by UNIDO and UNEP. Among
other activities, NCPCs assist companies, large and small, in professional training and coaching of cleaner
production auditors. Many experts from NCPCs are also engaged in the educational and research processes
of higher education institutions and participate in policy advocacy processes in their respective countries. More
information on the NCPCs is given in Chapter 7.
Box 13:8 Technical and vocational education and training (TVET)

TVET plays a very significant role in educating the work force in developing countries. It is responsible for 80%
of occupations in China. A transition to more sustainable production consumption systems will call for new
professionals. More sustainable TVET, also seen as a strategy to bring more dignity to the technical and vocational
jobs, needs to address ethical and sustainability goals associated with each occupational specialisation. The
curricula, methods of delivery and required competencies for graduates needs to evolve. Such development
itself has to be a collaborative mission of stakeholders from, among others, TVET institutions, government,
relevant productive sectors and higher education.
Nation-wide German KOZMET network was formed under the three year BauNachhaltig Project (Build
Sustainable). The project, that equates quality with sustainability, focuses on development of pedagogies and
learning materials for education of various professions engaged in construction. The project learns from and
with small and medium companies in the construction sector that are partners in the process. Key stakeholders
of the project include the Faculty of Applied Building Technology of the Hamburg University of Technology, The
Federal Institute for Vocational Training and Federal Ministry for Education and Research.
Education for the transition towards more sustainable markets
Greener and more sustainable products and services require availability of new skills for their production and
maintenance. For example, demand to develop low-carbon technologies, opens business opportunities where
knowledge of cleaner production and innovativeness for developing new business models would be high on the
agenda. Presence of new greener technologies and more sustainable services require specialists that might not
yet exist or who do not possess all required skills. In addition to the need to educate new specialists, the SCP
systems need to address the information, behavioural, regulatory, technical and financial barriers to redirect capital
flows from traditional high-carbon to low-carbon investments projects.
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Box 13:9 Examples of new skills required by greener markets

As the largest employer in the world agriculture (UNEP 2008), will face a need for educating farmers
and other related occupations in using low-carbon technologies and new ecosystem friendly
methods.
Requirements for low-carbon vehicles will call for skills to develop, produce and service the
machines.
Responsible building practices call for simultaneous application of skills from different fields to
design, build and service buildings and infrastructures that are energy-efficient and resilient.
The energy sector will demand specialists who are able to create, install and support various
efficient equipment and electricity systems.
While educational programmes oriented towards SCP systems can be undertaken by a variety of partners, it is
critical to understand the requirements for the various skills for the short and long-term development. However,
policies that address sustainability-related goals and skills development often are not coordinated. Such
integration has begun, for example with the Green New Deal of the Republic of Korea that aligns aspirations
for green growth and development of the green technologies with the goals for green skills (with the first step
dedicated to the research on the required skills).
Sustainable entrepreneurship
Sustainable entrepreneurship is often celebrated as a potential source of innovation for SCP. Being predominantly
a domain of small and medium size enterprises as well as community enterprises it is seen as a source of quick
innovations at the technological, organisational and strategic levels. Education of such entrepreneurs should
be concerned with competencies for identifying market opportunities to address social and environmental
challenges in a manner that satisfies requirements of SCP. A range of measures would be required for not
only establishing the educational practices in sustainable entrepreneurship for individuals, organisations and
communities but also to establish mechanisms which encourage entrepreneurial activities.
Box 13:10 Education of green entrepreneurs in Kenya, Uganda and Tanzania
The Youth Entrepreneurship Facility (YEF) is an initiative of the Africa Commission (ILO 2012), the Youth
Employment Network (YEN) and the International Labour Organization in Kenya, Uganda, and Tanzania. The
initiative sees green growth as particularly promising for youth employment and has led to remarkable results.
Some of the features of the program include:
exposure of secondary school youth to green entrepreneurship training;
development and adoption of the training materials;
cooperation with existing business associations to green their business portfolio;
prizes for the green business plans;
green mentorship;
green business development loans;
policies for promotion of green enterprises.
Since its conception in 2010, over 400 university students and 4,680 secondary school students have
participated in the programme in Kenya, with thirty one companies developed as a green or greening
enterprises. In 2010-2011, under the Chase Bank Enablis ILO Business Launchpad competition more than
5,000 entrepreneurs were trained in greening business strategies. Seven training of trainers sessions resulted
in 105 trainers qualifying to train start your business programme.
New governance challenges and a new approach to learning

Individual areas of SCP that call for interventions, with learning and new knowledge playing a critical role, is
part of a much larger challenge of SCP governance. To achieve SCP we would have to overcome the situation
where, for example, product design remains largely the responsibility of producers with consumers playing a
passive role or where the more conventional forms of businesses overshadows opportunities offered by more
sustainable production activities that dont have the scale or access to resources and markets. Traditional
models and role distributions need to be challenged, and existing educational practices that reinforce these
may need to be redesigned. In the domain of SCP, it is likely that many solutions will need to go beyond
individual sectors and traditional stakeholders.
page 194
To enhance governance of the SCP system, education of a variety of partners needs to focus on the capabilities to
look at a broader slice of the SCP system than traditionally practiced within the professional sectors. For example,
effective and sustainable capacity building needs to cut across all segments of education and life-long learning including educational curricula for formal educational column, vocational education, leadership programmes, data
collection and analysis processes, research and innovation programmes, community outreach and grassroots
training.
Box 13:11 UNUs ESD multi-stakeholder initiatives
ProSPER.Net in Asia-Pacific
Twenty eight reputed higher education institutions of ProSPER.Net in Asia-Pacific (Promotion of Sustainability in
Postgraduate Education and Research Network) work together to integrate SD into postgraduate courses and
curricula as well as in research programs. The network has developed learning modules for various professionals,
re-orientation of business schools curricula, e-learning programme for public policy and alternative approaches
for university appraisal based on sustainability principles. One of the ProSPER.Net Programmes, coordinated by
TERI University, focuses on online education for the policymakers interested in SCP and climate change.
Part B
Education for sustainable development

Regional Centre of Expertise (RCE) is a network of existing formal and non-formal education organisations
mobilised to deliver ESD in the region or locality where it is situated. It creates a platform for dialogue among
regional/local ESD stakeholders and for exchanging information, experience and good practices on ESD. There
are currently 116 RCEs worldwide. RCEs engage in capacity building through education and training in several
SD issues including SCP.
To facilitate the transition towards SCP, education for the policymakers and regulators is a primary task. As
governments play a critical role in changing existing consumption and production systems, both through
legislative provisions and incentives, it is essential that new competencies are developed on the side of the policy
and decision makers. The programmes of capacity development for the governmental officers and policymakers
would need to enable them to identify, create or further develop different policy packages/options and assess
them from the perspective of environmental, social and economic impacts in a particular context. Part of such
assessment would need to relate desired development directions to the required skills and other competencies
necessary to achieve it.
Facing the main challenges of the transition towards a more sustainable economy, calls for new leaders who are
able to facilitate the required transformation. Internationally, we observe emergence of important programmes that
are focused specifically on the policy and decision makers in the national and sub-national governments.
Important examples of educating such leaders are available around the world. For example, the Ministry of the
Environment of Japan is facilitating Environmental Leadership Initiatives for Asian Sustainability (ELIAS), focussed
on the development of environmentally-conscious citizens and environmental leaders. The initiative, led by
universities, is built on facilitating three characteristics of a leader (at the level of ordinary citizens or a high level
decision maker) - commitment, expertise and leadership.
Box 13:12 Building the capacity of policymakers across Chile, Indonesia and Tanzania
UNEP, in collaboration with various international partners, facilitated a pilot project focusing on mainstreaming
education for sustainable consumption (ESC) and lifestyle into curricula of formal and informal education in
Chile, Indonesia and Tanzania. Building on literature reviews and national consultations, the project Institutional
Strengthening of Education for Sustainable Consumption, offered ESC implementation strategies and road
maps for the relevant ministries, and partners in various educational settings.
For an effective coordinated response to emerge, a partnership of formal and non-formal education, researchers,
policymakers and civil society must emerge at the national and sub-national levels. Models of such practices are
gradually emerging. These contribute to the formation of a global learning space for sustainable development,
including sustainable consumption and production issues, and the transformation of knowledge and learning
towards sustainable development.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 195
Policy options for education and learning for SCP systems

The transition towards more sustainable economies reliant on different production and consumption systems
will require massive responses at the level of industries, government, public-private alliances and multistakeholder partnerships. It will eventually demand radical transformation of educational and training systems.
Key points for policy reform for education for SCP are summarised below.
Education of policymakers is essential, as they will pave the way for legislation and policies which
will drive and support the transition towards SCP. Competencies need to be developed to enable
policymakers across the world to identify, create and further develop policy options supportive of
environmental, social and economic sustainability.
Generally, SCP-related policy measures would have to be coordinated and aligned with measures for
development of competencies that would secure implementation of these policies.
Education, awareness raising and information provision with respect to SCP are important for
informed choices by citizens and organisations. Still, they do not guarantee a shift in behaviour or
emergence of new SCP systems.
Educational initiatives that promote SCP, with some of them referred to in this section, highlight the
necessity for new and different education for all segments of society and sectors of industry. They
demonstrate that development of merely technical skills for existing or for newly emerging jobs are
not sufficient. There is also a need for developing additional competencies such as understanding
of links between personal/professional activities and environment, ability to innovate and engage
with other partners as well as for measures that promote and foster application of the required
competencies. Educational approaches promoted by ESD could provide valuable and practical
insights into ways of structuring educational processes for SCP.
It is recognised that while the pedagogies for cultivating sustainability competencies are being
gradually developed by formal education, it remains a challenge within non-formal, informal and
TVET learning. Teaching innovations and teaching competencies for teaching leadership, networking,
communication, innovation, complexity of decision making, negotiation and risk management are
fundamental for the success of SCP strategies. If education of teachers and trainers (also with the
goal of increasing their number) is not addressed, it could become the major impediment for desired
development.
When recognising the need for education in the transition towards SCP, critical attention should be
given to policies that enable educational programmes and processes targeted at partners with lesser
financial or negotiating power such as local communities, small and medium size companies (SMEs),
the vulnerable and the marginalised.
Finally, while engaging partners for whole education is a professional activity (schools and higher
education, TVET system, professional training organisations), it is important to provide incentives
to the organisations, programmes and networks that have an existing track record in engaging
and learning across different sectors and segments of society nationally or internationally. Such
organisations often consider learning as part of the innovation process developing new alternatives
for SCP.
page 196
Further reading 13
Skills for Green Jobs: A Global View demonstrates the importance of skills for enabling
more sustainable growth of the developed and developing countries. It demonstrates
numerous examples of educational practices, policies that facilitate them as well as
principles that guide such policies.
Part B
International Labour Organization, 2011, Skills for Green Jobs: A Global View, Report of the
ILO prepared by Strietska-Ilina O, Hofmann C, Durn Haro M & Jeon S, Geneva.
Here and Now! Education for Sustainable Consumption: Recommendations and

Guidelines is primarily intended for the policymakers. It delivers a case for education for
sustainable consumption by linking it to other national goals including good citizenship
and environmental protection. It shows how education could unlock the potential of
sustainable development and provides guidance on integration of educational and
sustainable development strategies.
United Nations Environment Programme 2010, Here and Now! Education for Sustainable
Consumption: Recommendations and Guidelines, UNEP, Paris.
Towards more sustainable consumption and production systems and sustainable

livelihoods: learning contributions of the RCE Network demonstrates how multi
stakeholder cross sectoral partnerships could advance SCP practices through coengaged learning and innovation. Drawing on the practices of the Regional Centres
of Expertise for ESD from different world regions, including Asia, it highlights how
a combination of cross-efforts from multiple stakeholders, including governments,
contributes into to the areas lifestyle choices, green skills development through technical
and vocational education and training (TVET), green industries, governance for a greener
economy and sustainable livelihoods. It further explores the strategies for up-scaling and
mainstreaming such initiatives.
Fadeeva Z, Payyappallimana U &, Petry R 2012, Towards more sustainable consumption
and production systems and sustainable livelihoods: learning contributions of the RCE
Network. UNU-IAS.
Education for Sustainable Development: Sourcebook, The Toolkit is an easy-to-use
manual for beginning the process of combining education and sustainability. The purpose
of the publication is to describe ways in which education for sustainable development
(ESD) can be integrated into primary and secondary schooling.
UNESCO 2012, Education for Sustainable Development: Sourcebook, United Nations
Educational, Scientific and Cultural Organization, Paris
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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14
Energy Efficiency
Key Points
Energy efficiency is very important for both developed and developing
countries.
There are economic, social and environmental benefits from energy
efficiency.
What are the drivers, barriers and policy options to achieve energy
efficiency?
Energy efficiency improvements reduce demand and can often
alleviate the need to increase supply.
What is energy efficiency and why is it important?

Energy is widely recognised as the engine for economic growth and modern life. The way we live, construct,
produce, eat and commute has a major bearing on energy, most of which is derived from coal, oil and natural
gas. Fossil fuels are being consumed at a much faster rate than they can be replenished. If we continue to
demand fossil fuels at 2006 rates, the reserves of oil, coal and gas will last a further 40, 200 and 70 years,
respectively.
Under the business-as-usual scenario, the world energy demand is expected to increase from around 12
Gigatonnes (Gt) now to over 16 Gt by 2030. Business as usual is therefore no longer an option and we will face
dire consequences if we fail to act with clarity of purpose and raise energy productivity radically.
Industrialised nations went through three distinct phases of developmentpoverty alleviation, industrialisation
and mass production and consumption. Many developing countries are experiencing a simultaneous
occurrence of all three phenomena. If adequate measures are not taken, it will have devastating consequences
on development across the world, in the form of rising energy prices, energy supply volatilities, unaffordable
goods and services, stagnant or negative economic growth and degraded life style. There is an urgent need
for a paradigm shift in energy consumption, as it will have far-reaching impacts on development, the balances
in global resources and the global climate.
Box 14:1 Energy intensity and Energy Efficiency
Energy Intensity is defined as the ratio of energy consumption per unit output or activity (e.g. toe/$ or MWh/
Euro). On the other hand, Energy Efficiency improves when a given level of service is provided with reduced
amounts of energy inputs or when services are enhanced for a given amount of energy input (e.g. kWh/m2
of air conditioned space per annum or litres of gasoline/100 km travelled). An increase in energy efficiency
would mean a decline in energy intensity. In reality, energy intensity includes not just energy efficiency but
also some structural and behavioural components. For example, a decrease in energy consumption in a
commercial building does not necessarily mean the building has become more energy efficient. Other factors
such as changes in activities in the building (occupancy, operating hours), fuel switching, market demand for
commercial space, or even the behaviour of the occupants can also affect energy intensity.
While the industrialised world was built with abundant and cheap oil and for a much smaller population,
developing countries face high and volatile energy prices as a major obstacle to growth for a burgeoning
population, with a sizable number still deprived of access to modern energy services. Energy efficiency offers a
great opportunity for innovation and lasting benefits through the reduction of energy use for a given service or
level of activity by enhancing energy productivity, and squeezing the maximum out of every unit of primary energy
(i.e. doing more with less). The notion of energy efficiency is often associated with adoption of best available
technologies and practices (sustainable production, which requires innovation and legislation/obligation). It can
also be achieved through better organisation or management and through behavioural changes (sustainable
consumption, which requires raising awareness and incentives/ taxes).
According to the International Energy Agency (2009), it is possible to lower energy-related CO2 emissions by
2030 to below the 2009 level, by various technological measures. Interestingly, energy efficiency alone has the
potential to contribute a 57 per cent reduction in CO2 emissions, and much of it at a fraction of the marginal
cost of energy supply.
page 198
Figure 14:1 Possible ways to lower energy related CO2 emissions by 2030
Part B
Source: (IEA, 2009)

Box 14:2 Where do we stand in terms of energy productivity?
Here are a couple of examples of abysmal energy productivity in our day-to-day life and possible solutions to
dramatically enhance energy productivity:
Less than 1% of the energy in petrol or diesel moves us in an automobile. The vehicles weight alone
is responsible for two-thirds of the energy needed to move it. Vehicles can be designed to be more
compact and aerodynamic, constructed with ultra-light but ultra-strong materials and equipped
with more efficient engine technologies and drive-trains to achieve at least a factor-10 efficiency
improvement.
Less than 3% of the energy in fossil fuel keeps us comfortable in hot or cold climates while the
remaining amount is lost in the form of heat losses or gains through poorly designed building shells.
Buildings can be designed with the right materials, shape and orientation, minimising or avoiding
altogether the need for traditional heating and cooling equipment.
The CO2 abatement curve developed by McKinsey (2009) for India shows that many energy efficiency measures
can be attained at negative costs on the basis of life-cycle analysis. Such energy efficiency measures identified for
India are also relevant for other developing countries around the world.
Eskinder Debebe
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 199
Figure 14:2 Indias abatement cost curve for 2030 (cost below EUR 100/tonne)
Source: (McKinsey 2009)

Energy efficiency can be considered as the keystone to achieve sustainable consumption and production at
country level, or eco-efficiency at corporate level. Investment in energy efficiency is extremely attractive as the
incremental capital investment is mostly recovered in a reasonable time frame, energy cost is lowered, and
energy productivity improves, thus helping nations and businesses to be better prepared against sharp and
unpredictable hikes in fossil fuel prices in future. Moreover, unlike fossil-based energy supply options, energy
efficiency does not have adverse impacts on water supplies, coastal wetlands or coral reefs and does not
result in spills, accidents, explosions or fires. Hence, there is need for concerted efforts to tap this low hanging
fruit.
Box 14:3 Negawatt and Factor-4 Efficiency
A negawatt is a unit in Watts of energy saved. For example, when a 20-Watt compact fluorescent lamp
replaces a 100-Watt incandescent bulb without sacrificing the quality of lighting service rendered, it can
be considered as an 80-negawatt power plant because 80 Watts are saved at the end-use by quadrupling
the efficiency of the lighting device (also referred to as factor-4 efficiency). The power utility can use this
saved electricity to satisfy another customer without the need for investment and the fuel to generate and
transport electricity from the power plant to the customer. In fact, the fossil fuel savings are even greater if
one considers that every Watt delivered to a customer requires roughly 4 Watts of fossil fuel due to the energy
losses in the thermal power plant and the transmission and distribution network.
Just as the compact fluorescent lamp provides an opportunity to divide the electricity consumption by a
factor of four without any compromise in the quality of service, there are similar opportunities for changes in
the way we provide thermal comfort in homes and offices, manufacture products in factories, grow food in
farms, or transport people and goods. Individual products/devices can improve energy efficiency significantly,
but the most impressive savings come from optimising entire systems and processes.
Consider the vast need for energy to sustain the present trend of economic development in developing
countries. Meeting the future energy demand will require huge investments and will involve inefficient conversion
of depleting fuels into premium forms -- mainly electricity -- in ever larger, more complex, more centralised
plants. If on the other hand, we started taking the soft energy path and joined the bandwagon of negawatt
revolution that the eminent American Scientist Amory Lovins referred to as early as 1989, we could gradually
squeeze out fossil fuels by a combination of energy efficiency and appropriate renewable energy sources.
The Titanic sank by hitting an iceberg due to the Captains misjudgement. Investment decisions are very
often made on the basis of the first-cost, which can be like the tip of the iceberg, hiding the operation and
maintenance costs that are several-fold greater. For example, the annual cost of lighting an incandescent bulb
can be 30 times more than its initial cost, or the cost of a typical boiler can be equivalent to hardly 3-4 months
page 200
of fuel cost to produce steam from it. Energy efficiency solutions may be modestly more expensive but on the
basis of life-cycle analysis, the cost of saving energy is lower than the cost of subsidised fossil fuels.
Policy options, barriers and drivers to promote energy efficiency
Box 14:4 Drivers for energy efficiency

Energy security - Reduce energy demand growth, improve energy supply reliability, and minimise
dependence on energy import (maximise energy export in energy-surplus countries).
Economic competitiveness - Reduce energy intensity, lower production cost to make the
products more affordable to users, enhance energy productivity, and improve (domestic and export)
competitiveness.
Health - Reduce local (solid, liquid and gaseous) pollution and improve human health.
Climate change - Abate the adverse impacts of energy use on the regional and global environment
(emissions of greenhouse gases and acid rain).
Part B
Developing countries with per capita energy consumption below the world average need undoubtedly more
energy to meet the rapidly growing demand for housing, industries, transport, and services and achieve the
Millennium Development Goals (MDGs). However, this need not be at the cost of using energy inefficiently. A wellconceived energy efficiency strategy will allow them to achieve their developmental objectives with lower energy
consumption and enable them to improve the living standard and quality of life. For countries that face the added
challenge of achieving the target of production and services under energy supply constraints, the deficit in energy
supply can be effectively met by minimising the energy waste.
Huge technological progresses have been made to improve the efficiency of energy consumption and production.
In practice however, it can be challenging to tap and capture the most potential energy values from our fossil as
well as renewable energy resources, in the overall process of their extraction/capturing, conversion, transportation
and use. There are several barriers to making this transition. Governments, businesses and individuals can all
play a role, but there is no easy way to coordinate their actions. Barriers to investing in energy efficiency include
lack of information and awareness, inadequate knowledge, limited access to technology, market failures, lack of
resources and limited capital, poor institutional structure and a lack of incentive mechanisms.
Box 14:5 Typical barriers to energy efficiency
1. Information and awareness - Lack of information on actual energy consumption and energy saving
potentials, lack of knowledge of best practices and best available technologies.
2. Behavioural and organisational - Behavioural characteristics of individuals and organisations that
hinder the propagation of energy-efficient technologies and practices.
3. Technical - Absence of affordable energy-efficient technologies suitable to the local context;
inadequate capacity of energy users to identify, develop, implement energy efficiency projects.
4. Market - Market structures and constraints that prevent energy users from appraising the true value
of energy efficiency.
5. Financial - High up-front costs of energy efficiency solutions and the low energy supply tariffs
prevailing in many developing countries; lack of awareness of financial institutions of the financial
benefits of energy efficiency investments, etc..
6. Structural - Structural characteristics of the political, economic, energy system which make energy
efficiency investment difficult.
7. Institutional - Weak institutions to support energy efficiency; institutional bias towards supply-side
investments.
8. Regulatory - No regulation to invest in cost-effective energy efficiency; subsidised energy supply.
According to a recent IEA (2009) study covering 38 developing countries, fossil fuel consumption subsidies
amounted to 409 billion USD in 2010, with subsidies to oil products representing almost half of the total. While
governments argue that lower energy prices are beneficial for economic growth and can make the products and
services more affordable, there are several perverse impacts of such short-sighted policies. Subsidies are irrational
use of taxpayer money and government investment, more often benefitting the elites and upper classes than the
poor in developing countries. Also, a low energy price is a deterrent to the adoption of energy-efficient equipment
and processes, eroding the competitiveness of manufactured products and services.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
page 201
Government intervention is essential in the form of suitable policies and strategies that engage stakeholders
and build consensus in order to overcome barriers to energy efficiency. Policies addressing the different barriers
to energy efficiency are listed below:
Box 14:6 Policies addressing the barriers to energy efficiency
Barrier
Examples of policy options to overcome the barrier
Information
and
awareness
Awareness raising: public information/awareness campaigns through audio, visual and

print media, information clearing house, pilot and demonstration programs, etc.
Benchmarking: Support for creating and maintaining database for tracking the performance
of different categories of energy users
Technical
Training and certification: Develop human capital and institutional capabilities in energy
efficiency
Technical assistance: Standard setting and code enforcement, energy auditing, data
collection and analysis, energy management, integrated approach to energy system
designing, financing options, etc.
Curriculum development: Inclusion of energy efficiency in the standard curricula
Technology promotion: Demonstration and dissemination of energy-efficient technologies
with high energy savings and replication potential
Market
Labelling and certification: energy performance labelling, disclosure and benchmarking of

appliances and systems, setting norms for Best Available Technologies (BATs)
Funding Research and Development (R&D): Catalyse long-term research and technology
innovation in partnership with researchers and market players
Public private partnership: market transformation through performance-based public
tendering and procurement
Energy Service Company (ESCO): Assistance for the creation of ESCOs
Utility Demand Side Management: Obligation on utilities to invest and support energy
efficiency
Financial
Reducing upfront costs: Grants, subsidies, tax incentives for energy efficiency investments,
lease-purchase agreement, etc.
Access to financing: Loans, interest rate buy-down, energy performance contracts, third
party financing, energy efficiency revolving fund, etc.
Non-fiscal incentive: public recognition, dispensation from other codes, expedited permits,
etc.
Institutional
Awareness and capacity building: Sensitise public decision makers of the need to create
a good balance between supply expansion and demand management, capacity building
to conceive, organise and support energy efficiency programs; study visits to provide
exposure to best practices
Phasing out subsidies: Internalisation of all costs in energy pricing
Regulatory
Codes and standards: Prescriptive or performance-based energy performance

Energy labelling and certification: Making energy labelling and certification mandatory
Minimum energy performance standards (MEPs): Phasing out most energy-inefficient
products from the market
Energy audit and management: Mandatory energy audits and adoption of energy
management standards by energy intensive entities
Energy conservation reduction targets: Obligations on high-impact energy consumers to
reduce the energy intensity in a time-bound manner; energy saving obligation on energy
supply companies
Investment obligation: Obligation on certain categories of energy users to make energy
efficiency investments
Many countries consider energy efficiency law and decrees as prerequisites as they provide statutory legitimacy
and direction to energy efficiency policies by defining objectives as well as the policies, strategies and action
plans for targeted economic sectors. However, results expected from such strategies and action plans are not
likely to be achieved satisfactorily if there are no suitable institutional arrangements, funding, or coordination
mechanisms in place for the effective implementation of the action plans. Institutional arrangements are
particularly relevant in overcoming possible conflicts of interests and creating consensus among government
departments and/or between public and private sector organisations. As energy efficiency concerns all in
the society, government alone cannot succeed in implementing energy efficiency measures without active
support from the various stakeholders: energy end-users, energy companies, technology and energy service
providers, financial institutions, academic and research organisations and civil societies. Coordination allows
page 202
extensive consultation with stakeholders and ensures transparency in the energy efficiency strategy development
process. Moreover, all partners clearly understand their responsibilities and provide support for the successful
implementation of programmes.
Figure 14:3 Example of stakeholders in the building sector
Part B
Source: (WBCSD 2009)

Developing countries generally tend to emphasise regulations more than the free-market approach, as they find
it challenging to mobilise adequate funds to translate energy efficiency policies into action. However, a balance
between market mechanisms (carrots) and regulations (sticks) is needed to ensure the effectiveness of national
energy policy initiatives. A steady and reliable source of funding can finance the implementation of energy efficiency
programmes. Governments can allocate budget for such activities by earmarking energy/environment taxes and
public benefit charges that are exclusively used to fund energy efficiency programmes.
Energy efficiency experience

The rapid growth of Energy Conservation/Efficiency Frameworks adopted or Acts/Laws promulgated by many
countries reflects their recognition of its critical role in sustainable development, by bridging the demandsupply gap, improving international economic competitiveness, lowering import dependency, protecting against
fluctuating energy prices, enhancing national security and reducing the threats of global warming and climate
change. Such laws are generally comprehensive in the sense that they target the different economic sectors and
a range of energy policy measures, some mandatory and others voluntary in nature.
The level of success however varies a lot from one country to another, depending on the priority given to energy
efficiency in the national sustainable development framework and the means mobilised to translate the policy into
action. Weak institutional capacity appears to be one of the key reasons for the gap between the planning and
implementation of national energy efficiency policies. As a result, the institutional and coordination mechanisms
are lacking and energy efficiency programmes are not always sustained, especially during periods when oil prices
are low. On the other hand, when energy prices shoot up, many governments tend to protect end-users by
subsidising energy and absorbing the economic liability. In such cases, there is a need for improving legislation,
regulation, and standardisation and other policy and institutional measures.
Experience in several developing countries shows that energy performance standards and labelling schemes for
appliances and equipment are a cost-effective policy tool for transforming markets and encouraging energy-efficient
products. Governments usually follow a process of consensus and negotiation of standards that the industry can
meet with reasonable increases in prices. Initially a voluntary target is applied. As the market transformation
proceeds, the targets are introduced as standards. However, standards may fail to induce sufficient energyefficiency improvements if they are largely based on negotiations with industry members without any explicit
standard-setting method and if they are not revised periodically.
1 2 3 4 5 6 7 8 9 10 11 12 13 14
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To conclude, the downward trend of energy intensity in many developing countries is a good sign of the
positive impacts of energy efficiency. However, we are still quite far from realising the significant potential that
energy efficiency offers, at costs below the rising fossil fuel prices. Countries that still have a long way to go
in the development process may consider taking a more aggressive attitude in order to tap energy efficiency
to the fullest. This will enable them to achieve their developmental goals with the least adverse impact on
the global environment. This is the intention of the program in India, highlighted below. According to Natural
Resources Defence Council (NRDC), similar energy saving initiatives have been adopted by China, as part of
the Copenhagen Accord process, with formal commitments for a 4045% reduction in CO2 emissions per unit
of GDP by 2020, compared to 2005 levels.
Box 14:7 National action plan for climate change gives a boost to Indias energy efficiency goals
India adopted the National Action Plan for Climate Change (NAPCC) which will allow the country to maintain
high growth rates for increasing living standards of the vast majority of people and reduce their vulnerability
to the impacts of climate change. To achieve key goals in the context of climate change, the National Mission
for Enhanced Energy Efficiency (NMEEE) was retained as one of the 8 National Missions. NMEEEs objective
is to promote innovative policy and regulatory regimes, financing mechanisms, and business models in order
to create, sustain and market energy efficiency in a transparent manner with clear deliverables to be achieved
in a time bound manner.
In addition to the on-going efforts to carry out action under the national Energy Conservation Act 2001, 4
new initiatives were introduced to enhance energy efficiency:
Perform Achieve and Trade (PAT) This is a market-based mechanism to enhance cost
effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities,
through energy savings certificates which can be traded.
Market Transformation for Energy Efficiency (MTEE) This is a market transformation
mechanism to accelerate the shift to energy efficient appliances in designated sectors. Innovative
measures will make the products more affordable.
Energy Efficiency Financing Platform (EEFP) This is an innovative financing mechanism that
will help finance demand side management programmes in all sectors, by capturing future energy
savings.
Framework for Energy Efficient Economic Development (FEEED) This is a fiscal incentive
mechanism to promote energy efficient investment.
The PAT is one of the most promising initiatives, implementing Best Available Technologies and Practices
in energy-intensive large industries and facilities through economically viable projects. The principle is quite
simple and straight-forward: energy-intensive large industries and facilities consuming energy above a certain
threshold are notified by the government as designated consumers. This covers 9 sectors, namely thermal
power plants, fertilizer, cement, pulp and paper, textiles, chlor-alkali, iron and steel, aluminium and railways.
The baseline and energy efficiency improvement target are specific to each designated facility. When a
designated consumer achieves and surpasses the target, it can sell its excess savings in the form of Energy
Savings Certificates (ESCerts). On the other hand, if a designated consumer fails to achieve its targets, it
must purchase the appropriate number of ESCerts to meet its energy savings target.
Accredited Energy Auditors will conduct monitoring and verification of energy savings through a transparent
system.
page 204
Further reading 14
Energy Efficiency Governance Handbook was written to assist energy
efficiency practitioners, government officials and stakeholders to establish
effective EE governance structures for their country. The information is intended
to help the reader to develop comprehensive and effective energy efficiency
governance mechanisms.
Factor Five: Transforming the Global Economy through 80% Improvements in

Resource Productivity, The Natural Edge Project is an important contribution to
a growing corpus of work regarding energy and resource efficiency. It provides a
coherent framework and synthesis of the crucial issues of resource use efficiency and
decoupling of production from material and energy throughput. There are numerous
examples of resource productivity improvements from the most relevant sector.
Part B
International Energy Agency 2010, Energy Efficiency Governance Handbook,

IEA, France.
von Weizsacker & E.U et al 2009, Factor Five: Transforming the Global Economy through
80% Improvements in Resource Productivity, The Natural Edge Project, Earthscan
Publication, UK.
Energy efficiency policies around the world: review and evaluation identifies
recent trends in energy efficiency performance in selected countries and regions at
macro and regional levels. Energy efficiency policies are presented and evaluated on
the basis of a survey carried out in more than 70 countries and conclusions are drawn
on the advantages and drawbacks of different policies.
WEC 2008, Energy efficiency policies around the world: review and evaluation, World
Energy Council, London.
Compendium of energy efficiency policies of APEC economies is intended to

promote information sharing in the field of energy efficiency and energy conservation
across the APEC economies under a common format. It contains energy efficiency
policy information for all APEC economies (with the exception of Papua New Guinea)
based on responses to a questionnaire.
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page 212
About the UNEP Division of Technology,

Industry and Economics
Set up in 1975, three years after UNEP was created, the Division of Technology, Industry
and Economics (DTIE) provides solutions to policymakers and helps change the business
environment by offering platforms for dialogue and co-operation, innovative policy options,
pilot projects and creative market mechanisms.
DTIE plays a leading role in three of the six UNEP strategic priorities: climate change,
harmful substances and hazardous waste, resource efficiency.
DTIE is also actively contributing to the Green Economy Initiative launched by UNEP
in 2008. This aims to shift national and world economies on to a new path, in which jobs
and output growth are driven by increased investment in green sectors, and by a switch of
consumers preferences towards environmentally friendly goods and services.
Moreover, DTIE is responsible for fulfilling UNEPs mandate as an implementing
agency for the Montreal Protocol Multilateral Fund and plays an executing role for a
number of UNEP projects financed by the Global Environment Facility.
The Office of the Director, located in Paris, coordinates activities through:
> The International Environmental Technology Centre - IETC (Osaka),
promotes the collection and dissemination of knowledge on Environmentally Sound
Technologies with a focus on waste management. The broad objective is to enhance the
understanding of converting waste into a resource and thus reduce impacts on human
health and the environment (land, water and air).
> Sustainable Consumption and Production (Paris), which promotes sustainable
consumption and production patterns as a contribution to human development through
global markets.
> Chemicals (Geneva), which catalyses global actions to bring about the sound
management of chemicals and the improvement of chemical safety worldwide.
> Energy (Paris and Nairobi), which fosters energy and transport policies for sustainable
development and encourages investment in renewable energy and energy efficiency.
> OzonAction (Paris), which supports the phase-out of ozone depleting substances in
developing countries and countries with economies in transition to ensure implementation
of the Montreal Protocol.
> Economics and Trade (Geneva), which helps countries to integrate environmental
considerations into economic and trade policies, and works with the finance sector to
incorporate sustainable development policies.
DTIE works with many partners (other UN agencies and programmes, international
organizations, governments, non-governmental organizations, business, industry, the media
and the public) to raise awareness, improve the transfer of knowledge and information,
foster technological cooperation and implement international conventions and agreements.
For more information,

www.unep.org/dtie

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Released on World Environment Day 2015

Copyright United Nations Environment Programme, 2015

Part B : THEMATIC POLICY OPPORTUNITIES

1.1 Defining SCP

Key principles of SCP:

Figure 1.1 Sustainable consumption and production

Source: (UNEP n.d.a.)

SCP and Green Growth/Green Economy:

Resource Efficiency and SCP

Box 1:1 Design for recycling

1.2 Why is SCP important for sustainable

The rise of global resource use

Figure 1.2 Global resource use by 2050 under various scenarios

Comparing global resource use scenarios

Source: (CSIRO Global EnvironmentEconomy Model 2013)

Gross Domestic Product (GDP)/ LP ($/h)

Labour productivity (LP) = GDP/

PPP/cap (int. $) Purchasing Power Parities (PPP)/ MP ($/kg)

Material productivity (MP) = GDP/

Domestic extraction of materials EP ($/MJ)

Energy productivity (EP) = GDP/

Physical trade balance (PTB)

Domestic material consumption

TPES/cap (GJ) Total primary energy supply (TPES)

Table 1:1 Headline indicators for Africa, 2010

Figure 1.3 Africa snapshot

Metal ores and industrial minerals

Metal ores and industrial minerals

Metal ores and industrial minerals

Metal ores and industrial minerals

Factor productivities Africa

Index (1970 = 100)

Source: (CSIRO & UNEP 2013a)

Snapshot: Asia and the Pacific

Figure 1.4 Asia and the Pacific snapshot

DE/capita Asia and the Pacic

DMC Asia and the Pacic

Metal ores and industrial minerals

PTB/capita Asia and the Pacic

Metal ores and industrial minerals

DMC/capita Asia and the Pacic

Metal ores and industrial minerals

Metal ores and industrial minerals

Factor productivities Asia and the Pacic

Index (1970 = 100)

Source: (CSIRO & UNEP 2013a)

Snapshot: Eastern Europe, Caucasus and Central Asia

Figure 1.5 Eastern Europe, Caucasus and Central Asia snapshot

Metal ores and industrial minerals

Metal ores and industrial minerals

Metal ores and industrial minerals

Metal ores and industrial minerals

Factor productivities EECCA

Index (1970 = 100)

Source: (CSIRO and UNEP

Snapshot: European Union

Table 1:4 Headline indicators for the European Union, 2010

Snapshot: Latin America and the Caribbean

DMC Latin America