Assessing Global Resource Use: Summary For Policymakers

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SUMMARY FOR POLICYMAKERS

ASSESSING GLOBAL
RESOURCE USE
A systems approach to resource efficiency
and pollution reduction
Acknowledgements
Authors: Stefan Bringezu, Anu Ramaswami, Heinz Schandl, Meghan O’Brien, Rylie Pelton, Jean Acquatella, Elias T. Ayuk,
Anthony Shun Fung Chiu, Robert Flanegin, Jacob Fry, Stefan Giljum, Seiji Hashimoto, Stefanie Hellweg, Karin Hosking,
Yuanchao Hu, Manfred Lenzen, Mirko Lieber, Stephan Lutter, Alessio Miatto, Ajay Singh Nagpure, Michael Obersteiner, Lauran
van Oers, Stephan Pfister, Peter-Paul Pichler, Armistead Russell, Lucilla Spini, Hiroki Tanikawa, Ester van der Voet, Helga Weisz,
James West, Anders Wiijkman, Bing Zhu and Romain Zivy

* Authors other than SB, AR, HS, MO and RP are listed alphabetically.

This interim report was written under the auspices of the International Resource Panel (IRP) of the United Nations Environment
Programme. We thank Janez Potocnik and Izabella Teixeira, the Co-Chairs of the IRP. We are very grateful to the Peer-review
coordinator Patrice Christmann and reviewers Gaodi Xi (Institute of Geographic Sciences and Natural Resources Research,
Chinese Academy of Sciences); Chazhong Ge (Chinese Academy for Environmental Planning, Ministry of Environmental
Protection); Shem Wandiga (University of Nairobi); Keisuke Nansai (National Institute for Environmental Studies); Raoudha
Gafrej (Assistant Professor, University of Tunis El Manar); Franz Gatweiler (ICSU); Ranran Wang (Yale University); Claudia
Binder (Ecole Polytechnique Federal de Lausanne); Liselotte Schebek (Technische Universität Darmstadt); Barbara Reck (Yale
University); Sabine Barnes (Université Paris 1 Panthéon Sorbonne); Valerie Thomas (Georgia Institute of Technology); Chen Sha
(Beijing University of Technology); and Laurent Bontoux (European Commission).

We also thank United Nations Environment Programme Secretariat of the International Resource Panel: Peder Jensen, Maria-
Jose Baptista, Vera Gunther, and in particular Hala Razian for assistance in the organization and editing of the report.

Copy Editor: Cheryl Livesey


Design and layout: Anna Mortreux
Printed by: UNESCO
Photos: © ADB Fiji/Flickr, © ADB Lao PDR/Flickr, © ADB Timor Leste/Flickr

Copyright © United Nations Environment Programme, 2017

This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special
permission from the copyright holder, provided acknowledgement of the source is made. United Nations Environment
Programme would appreciate receiving a copy of any publication that uses this publication as a source. No use of this
publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from
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Disclaimer
The designations employed and the presentation of the material in this publication do not imply the expression of any opinion
whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country, territory,
city or area or of its authorities, or concerning delimitation of its frontiers or boundaries. Moreover, the views expressed do not
necessarily represent the decision or the stated policy of the United Nations Environment Programme, nor does citing of trade
names or commercial processes constitute endorsement.

The full report should be cited as: IRP (2017). Assessing global resource use: A systems approach to resource efficiency
and pollution reduction. Bringezu, S., Ramaswami, A., Schandl, H., O’Brien, M., Pelton, R., Acquatella, J., Ayuk, E., Chiu, A.S.F.,
Flanegin, R., Fry, J., Giljum, S., Hashimoto, S., Hellweg, S., Hosking, K., Hu, Y., Lenzen, M., Lieber, M., Lutter, S., Miatto, M., Singh
Nagpure, A., Obersteiner, M., van Oers, L., Pfister, S., Pichler, P., Russell, A., Spini, L., Tanikawa, H., van der Voet, E., Weisz,
H., West, W., Wijkman, A., Zhu, B., and Zivy, R. A Report by the International Resource Panel. United Nations Environment
Programme, Nairobi, Kenya. [100 pp.]

ISBN: 978-92-807-3677-9
DTI/2141/PA
UNEP 163
SUMMARY FOR POLICYMAKERS

ASSESSING GLOBAL
RESOURCE USE
A systems approach to resource efficiency
and pollution reduction

Produced by the International Resource Panel.


This document highlights key findings from the report, and should be read in conjunction
with the  full report. References to research and reviews on which this report is based
are listed in the full report. The full report can be downloaded at
http://www.resourcepanel.org/reports/assessing-global-resource-use
Additional copies can be ordered via e-mail: [email protected], or via post:
United Nations Environment Programme (UN Environment)
1 rue Miollis - Building VII
75015 Paris, France
ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

Preface

At the Second Session of the United Nations Environment Assembly, nations not only recognized that fundamental changes
in the way societies consume and produce are indispensable for achieving global sustainable development, but also
acknowledged the importance of rigorous scientific evidence on the sustainable use of natural resources to inform policies
to this end.

The International Resource Panel was honoured to be called upon at that session to make available information on the state,
trends and outlook of sustainable consumption and production to the Assembly by 2019.1 This interim report is the first step
in responding to that request. It builds on ten years of research by the panel to reassert the centrality of natural resource
management to achieving sustainable development; to reiterate the urgency and imperative to decouple economic activity
and human well-being from resource use; and to provide innovative solutions based on cutting-edge data to support the
transformation of our linear production and consumption systems towards efficiency and circularity.

In line with the drive for a pollution free planet at the Third Session of the United Nations Environment Assembly, the research
takes a step further to look at the relationship between resource use and pollution. The amount of natural resources used
is closely linked to the amount of final waste and emissions generated through their use. Effective pollution control must
therefore also look to minimize raw material use, thereby decreasing final waste and emissions. This link between natural
resource use and management and pollution mitigation is explored in depth at the city scale in the special feature of this
report. Using a systems approach to examine resources used in developing and emerging economy cities, strategies are
being put forward to reduce pollution while also advancing human well-being.

Such innovative and multi-beneficial approaches to the complex social, economic and ecological challenges of our times
can be revealed by measuring and monitoring the way we extract, use and dispose of our natural resources. The scientific
evidence put forward in this interim report focuses on material resources, including - for the first time - results drawn from a
database spanning fifty years up to 2017. Subsequent research of the Panel, including a report to be submitted to the Fourth
Session of the United Nations Environment Assembly in 2019, will expand this analysis to include water, land and fossil fuel
and emission footprints.

1 Second Session of the United Nations Environment Assembly, Resolution 2/8 on Sustainable Consumption and Production available at:http://wedocs.unep.org/bitstream/
handle/20.500.11822/11184/K1607179_UNEPEA2_RES8E.pdf?sequence=1&isAllowed=y.

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A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

Through continued reporting on this information at regular intervals, the International Resource Panel aims to improve
the evidence base for systemic monitoring and policymaking for sustainability. It is our hope that such regularly reported
data in our Global Assessment series can support the efforts of nations to monitor natural resource flows and the work of
policymakers to orient socio-economic transitions toward sustainability.

We wish to sincerely thank the lead authors and the members of the International Resource Panel working group for laying
the groundwork for such important research through this interim edition of the Global Assessment series. Equally, we would
like to thank the members of the United Nations Environment Assembly for their confidence in the International Resource
Panel to deliver this important work.

Janez Potocnik Izabella Teixeira


Co-Chair Co-Chair
International Resource Panel International Resource Panel

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ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

Foreword

The more natural resources that move through our economy, the more impact - including waste, emissions and hazardous pollutants
- we can expect on our environment and, in turn, our well-being. While seemingly a straightforward proposition, the links between
human well-being, economic prosperity and environmental resilience are complex and varied. This means that, unless all three
dimensions are taken into consideration in policymaking, any progress in achieving ambitions across them may be hampered by
unintended consequences and rebound effects.

This interim report of the International Resource Panel provides a first glimpse at a new evidence base that can inform
precisely this kind of integrated policymaking. It presents up-to-date information on material resources that reveals where
material resources are extracted and used, for what purpose and to what effect. This information can drive targeted policy
interventions and the setting of long-term goals to transform how resources are used for the benefit of people and a
pollution-free planet. Seven key strategies are proposed, and existing examples from across the globe shared, to drive
the transformation of consumption patterns and production systems that contribute to human well-being without putting
unsustainable pressures on the environment.

The implications of this type of integrated policymaking are potentially transformative. Using data on water, fossil fuels,
air pollution and greenhouse gas emissions for Delhi, India, and over 600 cities in China, case studies demonstrate how
information on natural resources can help identify policy bundles that deliver a significant improvement in human well-being
with a relatively small investment in resources. For developing and emerging economies, this means that delivering
well-being for all citizens can be achieved with only a modest increase in the amount of resources used. For developed
economies, absolute levels of resource use and impacts can be reduced while still achieving high social and economic gains.

In the case example of Delhi, a policy bundle that requires only a ten per cent increase in the city’s energy and material
(cement) resource demand was estimated to improve the well being of 7 million underserved homes (while decreasing
greenhouse gas emissions and the fine particulate matter emissions that are a dominant risk factor in air-pollution related
premature deaths). In China, a mix of compact urban design and circular economy policies could contribute up to 35 per
cent towards carbon dioxide mitigation compared to single sector strategies, while also avoiding pollution-related mortali-
ties. While every city faces its own unique challenges and circumstances, the case examples demonstrate the importance
of this new evidence base in supporting impactful policy design.

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A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

The drive towards transformative, integrated approaches to sustainability must be founded on rigorous science - so that
progress in one area reinforces advancements in others. Recognizing this, in Resolution 2/8 on Sustainable Consumption and
Production the Second Session of the United Nations Environment Assembly asked the Panel to share scientific knowledge
on the state, trends, and outlook of sustainable consumption and production. This report is the interim response to this
request, with impressive results. I am sure you will join me in welcoming this contribution to the debates at the Third
Session of the Environment Assembly, and in looking forward to the subsequent reports of this series that will expand its
assessment to other natural resources including land, water and greenhouse gas emissions.

Ligia Noronha
Director, Economy Division
United Nations Environment
Programme

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ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

© Kate Evans CIFOR /Flickr

Key Messages

1 2 3 4 5
Global material Environmental impacts – Decoupling To achieve effective Resource efficiency
resource use is including climate change economic activity decoupling, today’s and circular economy
expected to reach and pollution – cannot and human well- linear material create jobs and
nearly 90 billion tonnes be effectively mitigated being from resource flows must become deliver better
in 2017 and may more by focusing on emission use – i.e. enhanced circular through socio-economic
than double from abatement alone. resource efficiency a combination of and environmental
2015 to 2050, with The level of resource – is necessary intelligent infrastructure outcomes compared
high-income countries use determines the to achieve the and product design, to business-as-usual
currently consuming magnitude of final waste Sustainable standardization, over the long term.
10 times more per and emissions released Development Goals reuse, recycling and
person than low-income to the environment, for all. remanufacturing.
countries and the making resource
planetary boundaries management and
being pushed beyond efficiency key strategies
their limits. for environmental
protection.

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A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

The International Resource Panel aims to improve the evidence


base for systemic monitoring and policy making, in particular
through systems-based assessment of the resource related
challenges and opportunities supporting the transition towards
sustainable development.

6 7 8 9 10
Countries A systems approach A systems approach Targets and Technical, business
face differing that avoids burden can also be used to indicators, such as and policy innovation
circumstances shifting between steer sustainable material footprints, across the whole
and therefore have sectors, regions, urban infrastructure are needed at all product life-cycle,
varying opportunities resources and impacts transitions, levels of governance as well as reform of
for decoupling wealth is needed to transform transforming the way to monitor material financial instruments,
creation and resource production and in which the basic flows and steer will be crucial for the
use, including leap consumption systems needs of food, energy, socio-economic transition to resource
frogging. toward the SDGs. water and shelter transitions toward efficient economies,
are met in order to the SDGs. as will policy learning,
develop inclusive, capacity building and
resource-efficient and knowledge sharing.
low-polluting cities.

7
ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

Why a Global Assessment of Resource Use?

through enhanced resource efficiency is an essential


aspect of delivering on Sustainable Development Goal 12
on Responsible Production and Consumption, and also on
almost all of the goals in a direct or indirect manner. To
achieve such decoupling, today’s linear material flows
through the economy must become circular through intel-
ligent design of products incorporating standardization,
reuse, recycling/ remanufacturing, development of efficient
and inclusive infrastructure systems, and, a focus on
delivering services rather than material products. Resource
efficiency is also complementary to conventional pollu-
tion-control strategies. By lowering the amount of resources
used, the amount of related emissions and impacts can
also be reduced, and many of them at the same time.

Viable pathways exist for society to undertake such decou-


© ADB Uzbekistan/Flickr
pling of economic growth from natural resource use and
environmental impacts. Technically feasible and commer-
The way in which societies use and care for natural cially viable technologies can improve water and energy effi-
resources fundamentally shapes the well-being of humanity, ciency by 60 to 80 per cent in construction, agriculture, food,
the environment and the economy. Natural resources - that industry, transport and other sectors, while also delivering
is, plants and plant-based materials, metals, minerals, fossil economic cost savings of between USD 2.9 and 3.7 trillion
fuels, land and water - are the basic inputs for the goods, each year by 2030. Essential infrastructure (energy, build-
services and infrastructure of socio-economic systems ings, transportation, water supply, sanitation and waste
from the local to the global scale. Research shows that, management) and food supply sectors significantly contrib-
either directly or indirectly, natural resources and the envi- ute to global resource-use pollution and environment-related
ronment are linked to all of the United Nations Sustainable impacts on human health. These sectors also shape social
Development Goals. Restoring and maintaining the health equity in basic provisioning and impact multiple Sustainable
of the natural resource base is a necessary condition to Development Goals. With over 60 per cent of the urban
achieving the ambitious level of well-being for current and infrastructure expected to exist by 2050 yet to be built, the
future generations set out in these goals. opportunity exists to shape the future over the long term.

Improving the well-being of people while minimizing In this sense, decoupling is not the domain of environmen-
resource use and environmental impacts in particular tal ministries alone, but rather cuts across all ministries and

8
A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

levels of government. This means that a mix of multi-level consumption systems, including essential infrastructure
and multi-sectoral policies is needed to move beyond piece- and food provision. About 6.5 million premature deaths (the
meal changes to a profound transformation of how natural vast majority in cities) are caused by air pollution related to
resources flow through society. energy supply and use in homes and industries, as well as
transportation and construction sectors within cities.
The foundation for this change is accurate information.
Environmental and sustainability policy requires a solid Effective pollution control requires mitigation of sub-
evidence base that makes it possible to monitor the stance-specific hazards and a reduction of raw material use
scale of the physical economy, that is - the amount of through the economy, in order to lower the volume of final
material, energy, water and land used and of emissions waste and emissions to air and water. Material demand has
generated in making, using and providing goods, services continued to shift from biomass and renewable materials
and infrastructure systems. Data drawn from up-to-date to non-renewable materials, creating new waste flows and
information on the state, trends, and drivers of the phys- contributing to higher emissions and pollution. The global
ical economy can help to identify leverage points for tar- trend of moving from traditional to modern technologies,
geted and effective policy intervention across sectors and and from agriculture-based economies to urban and indus-
geographical scales. This kind of regularly reported data, trial economies (along with their fast-growing new material
such as those drawn from a global assessment of natural requirements), further accelerates global material use and
resources, can inform the setting of long-term orientation creates significant challenges for sustainability policy.
goals, incentive frameworks and systems of engagement
and mutual learning that will pave the way for transforma- Metal-ore extraction and metal production increased three-
tional change. fold from 1970 to 2010. The steepest increase occurred
from 2000 to 2010, driven mainly by the industrialization and
urbanization of emerging economies. Environmental impacts
have increased over time, mainly as a result of increased pro-
Resource use and pollution duction. Decreasing material and energy productivity is bad
Better and more efficient production and use of natural economically – it means reduction of potential economic
resources can be one of the most cost-efficient and growth – and also bad environmentally (as pressures and
effective ways to reduce impacts on the environment and impacts upon the environment, including pollution, grow
advance human well-being. Identifying efficiencies across disproportionally faster than the production of goods and
the life cycle of natural resources means finding opportun- services). Investing in material and energy productivity is
ities for improving how they are extracted, processed, used therefore a key area for improving the integration of economic
(including re-use, recovery and recycling) and disposed of and environmental objectives and reducing pollution. This is
to achieve the same - or greater - economic and social integral to SDG 12, which aims to reshape consumption and
gains while minimizing negative environmental impacts production patterns by transforming resource use in a way
(including pollution). that reduces pressures on the environment and climate while
promoting human and economic development.
Approximately 19 million premature deaths are estimated
to occur each year globally due to environmental and infra-
structure-related risk factors that arise from the way soci-
eties extract and use natural resources in production and

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ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

What can a systems approach to natural


resources tell us?
and synergies; and steer a transition toward sustainable
consumption and production and infrastructure systems.

The International Resource Panel assesses natural


resources from a systems perspective in keeping with the
DPSIR analytical framework for human-nature interactions.
The framework looks at multiple drivers of resource use
and resulting pressures on the natural environment as
determinants of the state of the environment. The state
of the environment in turn impacts human wellbeing and
socio-economic systems that rely on it, thus requiring a
response strategy to influence key drivers, and direct the
resulting pressure, state and impacts to desired levels
through an iterative and continuous process.

The use of natural resources, and their related impacts,


© Nathan Russell CIAT/Flickr
are increasingly transboundary, largely due to trade and
globalization. As a result, national accounting metrics that
focus solely on a nation’s direct natural resource use do not
Focusing on single resources, single economic sectors or fully represent the resources and associated impacts that
single environmental and health impacts will not achieve the contribute to economic activity. The concept of footprints
collective vision of the Sustainable Development Goals, and that captures resource use across borders is therefore a
may instead cause harm if the interactions between each of critical tool in a systems approach. Footprints can measure
the goals are not considered. Analysis linking the way natural different types of pressures, including resource use, pollu-
resources are used in the economy to their impacts on the tion emissions and environmental impacts. Four footprints
environment (pollution, deforestation, biodiversity loss and on resource use (materials, land, water and fossil energy)
water depletion) and people (health, well-being, wealth and so have been identified as determining the magnitude of most
on) across time requires the adoption of a systems approach. specific environmental impacts.
A systems approach connects the flow of resources - from
extraction through to final waste disposal - with their use
and impact on the environment, economies and societies
at each stage of the life-cycle. The approach can be used to
identify key leverage points; develop resource targets; design
multi-beneficial policies that take into account trade-offs

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A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

FIGURE 1 
Natural resource use linked to the Sustainable Development Goals via the Drivers-Pressures-State-Impact-Response
Framework.

• Resource use (fuel, NATURAL ENVIRONMENT


metals, minerals, ES • Depletion of finite resources
biomass, water and land) SUR ST
AT
ES
• Pollution levels (in air, water and soil)
• Pollution emissions in (SDG 3, 14, 15)

PR

E
air, water and land
• Climate extremes (SDG 13)
(SDG 13, 14, 15)

VARY ACROSS
SCALES AND
GLOBAL
D RIVE R S

• Population growth IMPACT ON HUMAN AND PLANETARY


GEOGRAPHIC

TS
• Migration WELL-BEING

PAC
• Urbanization (SDG 9) REGIONS • Poverty (SDG 1)
• Hunger (SDG 2)

IM
• Poverty and inequality
(SDG 1, 10) • Clean water (SDG 6)
• Deprivation in basic • Economic growth (SDG 8, 9, 11)
infrastructure • Climate (SDG 13)
(SDG 6, 7)
RESPONSE • Biodiversity (aquatic and terrestrial)
• Affluence and lifestyle (SDG 14, 15)
changes
• Land/soil (SDG 2, 15)
• Access to education, equality, clean
energy, infrastructure, etc.
(SDG 4, 5, 7, 9, 10)

INCREASED DEMAND FOR


• Infrastructure Services • Sustainable consumption-production (SDG 12)
• Production • Infrastructure transition with emerging technologies (SDG 11)
• Consumption

DPSIR = Drivers, Pressures, State, Impacts and Response

11
ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

A Global Assessment of Material Resources

in 1970. This is significant because, all else being equal,


growing material extraction with subsequent material
flows would lead to growing environmental pressures and
impacts across the globe.

Growing material use is driven by expanding populations,


consumption trends in mainly developed economies and
the transformation of developing economies. Demand for
materials has shifted from renewable to non-renewable
resources, reflecting the global trend away from traditional
towards modern technologies, and from agriculture-based
economies to urban and industrial economies. This creates
new waste flows - thereby increasing emissions and pol-
lution. For example, data show that the steep increases in
demand for metal ores, like iron, have contributed to sharp
rises in greenhouse gas emissions, acidification, aquatic
© Deanna Ramsay CIFOR/Flickr
ecotoxicity and emissions of smog-forming substances.

New analytical tools provide insight into the amount of pri-


While subsequent reports of this series will assess mary raw materials required along the entire supply chain
footprints of all resources (materials, land, water and of commodities.2 For imports, and measured on a per
greenhouse gas emissions), the focus of this report is on capita basis, the use of primary raw materials is four times
material resources. Material resources are the biomass the world average in Europe and North America. Global
(such as wood and crops for food, energy and plant-based materials have historically been sourced from low-income
materials), fossil fuels (such as coal, gas and oil), metals and middle-income regions that bear the burden of local
(such as iron, aluminum and copper) and non-metallic min- impacts of resource extraction, often for the sake of pro-
erals (including sand, gravel and limestone) that are used ducing primary exports to high-income countries. Until the
in the economy. Strong growth in the extraction of material year 2000, high-income countries were net importers of
resources continues to support the global economy, and materials while all other regions were net exporters. This
also adds to global environmental pressures and impacts. has changed dramatically in 2017. High-income countries
Based on a material resources database that covers almost now export one billion tonnes of materials, mainly driven
five decades (1970 to 2017) and 191 countries, existing
trends forecast global material use to reach 88.6 billion 2 The raw material equivalents (RME) of trade flows, that is, the amount of primary
tonnes in 2017 – more than three times the amount used raw materials required along the supply chain to produce commodities.

12
A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

by the United States and Australia’s fast growing exports, By 2050, ambitious polices for resource efficiency could
while upper-middle-income countries import around reduce global resource requirements by about a quarter and
750 million tonnes. deliver global economic growth of 3 to 5 per cent above the
existing trend. This would also have considerable co-benefits
Material footprints add further depth to the picture of global for climate mitigation efforts.
materials use. In 2017, despite more than half of global
material use being directed to final demand in Asia and the Resource efficiency policies and initiatives could:
Pacific, the material footprint of the region is estimated at
11.4 tonnes per capita. North America recorded 30 tonnes of §§ reduce natural resource use globally by 26 per cent by
material per capita for final demand, Europe 20.6 tonnes and 2050, in combination with ambitious global action on
all other regions measured under 10 tonnes per capita. On a climate change, as well as stabilizing per capita resource
per capita basis, high-income countries continue to consume use at current levels in high-income countries;
10 times more materials than low-income countries.
§§ reduce greenhouse gas emissions by an additional 15
The full report provides in-depth analysis of material to 20 per cent by 2050 (for a given set of greenhouse
resources to illustrate where materials are extracted, where policies), with global emissions in 2050 falling to 63 per
they are used, what the impacts are and what has driven cent below 2010 levels, and emissions in high-income
material use. Understanding these interactions facilitates countries in 2050 falling to 74 per cent below 2010 levels;
the development of appropriate policy responses. Reigning
in the total physical scale of the economy is one essential §§ more than offset the economic costs of ambitious
first step to reduce waste and emissions and to mitigate climate action, so that income is higher and economic
overall environmental impacts. A new economic paradigm growth is stronger than in the ‘existing trends’ scenario;
is needed to improve resource productivity and allow for
production and consumption systems to be run with lower §§ deliver annual economic benefits of USD 2 trillion glob-
material and energy requirements, as well as reducing waste ally by 2050 relative to existing trends, including benefits
and emissions while providing all services needed. of USD 520 billion in high-income nations, while also
helping put the world on track to limit climate change to
2°C or lower.

How resource efficiency can These projections can be treated as a reasonable minimum
transform economies estimate of economically attractive physical resource effi-
ciency potential. Further reports of this series will present
The International Resource Panel modelled the combined in-depth scenario modelling to support informed policy and
economic and environmental consequences of ambitious decision making. The level and mix of economic and environ-
resource efficiency and greenhouse gas abatement policies mental benefits achieved will depend, however, on the design
(UNEP, 2017) and found that there is substantial potential to of the policies and approaches implemented – suggesting
achieve win-win outcomes that reduce environmental pres- that attention will be required to develop and test a smart and
sure while improving income and boosting economic growth. practical package of resource-efficiency measures.

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ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

FIGURE 2 
Global resource extractions by four categories (biomass, fossil fuels, metal ores and non-metallic minerals) (a) 2010–2050
for Existing Trends, and (b) change from 2015 to 2050 for four scenarios.

200

180

160

140
Billion Tonnes

120

100

80
Biomass
60 Fossil fuels
Metal ores
40
Non-metalic minerals
20

0
2015 2020 2025 2030 2035 2040 2045 2050

200%
Percentage change 2015 to 2050

150%

100%

Existing Trend
50%
Resource Efficiency
Ambitious Climate
0% Climate Plus

-50%-
Total Biomass Fossil Fuels Metal ores Non-metalic
minerals

14
A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

© ADB LAO PDR/Flickr

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ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

Driving a profound resource efficiency transition

that policies steer the markets where businesses operate


and build the social infrastructure in which citizens live.

To steer long-term and profound changes, four iterative


steps across all levels of governance are required: (1) mon-
itor current performance and use; (2) set targets and define
future objectives in the light of international agreements;
(3) test and innovate targets, regulation and voluntary
approaches, subsidies and taxes for resource efficiency
and integrated resource management; and (4) evaluate,
learn and adapt.

At the national level, a bundle of strategies and tools is


available to public authorities to support the shift towards
inclusive, resource-efficient and pollution-free economies.
The overarching strategies manifest differently in terms
© ADB Timor Leste/Flickr
of possible pathways depending on a country’s level of
natural resource endowment and its socio-economic
context. Absolute decoupling is recommended as an aim
Efficiency in the way resources are extracted and man- for high-income nations, with the need to lower average
ufactured by industry, used and re-used by people and resource-consumption levels, distribute prosperity equally
recycled and disposed of by all is essential to efforts toward (including for gender equality) and maintain a high quality
a sustainable and pollution-free planet. A long-term vision of life. Strategies toward waste prevention, high-value
underpinned by evidence-based targets and incremental resource recovery, circular resource flows and adjusting
policy signals can combine to produce a profound trans- social norms are particularly relevant. Relative decoupling
formation of the physical economy. It is crucial to ensure a is a key strategy well-suited to developing economies and
coordinated and coherent approach to policymaking across economies in transition to raise average income levels and
ministries, as well as the participation of stakeholders eliminate poverty. These countries should strive to improve
capable of turning shared visions into reality and managing their resource efficiency even as their net consumption
resistance to change by clarifying multiple benefits for the increases until a societally acceptable quality of life is
actors. This implies not only bottom-up changes in the achieved. There is an opportunity to fast-track sustainable
way businesses create value and citizens access, use and development in such countries by learning from and leap-
dispose of resources, but also top-down changes in the way frogging traditional pathways.

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A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

Resource efficiency alone is not enough. Productivity gains of extended product life cycles, intelligent product design
in today’s linear production system are likely to lead to and standardization, reuse, recycling and remanufacturing.
increased material demand through a combination of eco- Business models aiming at offering high-quality services as
nomic growth and rebound effects. What is needed is a move an alternative to selling more products would be another
from linear to circular material flows through a combination important component.

FIGURE 3 Transition cycle toward sustainable resource use.

EVALUAT
ARN AND E
LE

Learn from effective and


ineffective policies
nationally and abroad.

Adjust and
T AND INNOVATE

implement

MONITOR USE
policies to set Monitor the
the framework state of
for sustainable
infrastructures
RESOURCE environment
and account for
and business USE resource use
models in and flows.
green markets.
TES

Commit to attainment of all


SDGs and set subtargets for
resource use, e.g. for materials,
water, land and carbon.

SE T TARGE TS

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ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

Seven policy strategies for multi-beneficial


policymaking

© World Bank/Flickr

Many policy tools have been successfully used for tackling aspects of the resource efficiency challenge in different parts
of the world. This report proposes seven strategies for consumption patterns and production systems that contribute to
human well-being without putting unsustainable pressures on the environment.

1. Set targets and measure progress


A set of resource efficiency targets for the use of key resources (materials, land and water, as well as greenhouse gas
emissions) can guide policy development and inform a progress-monitoring framework. Targets should preferably be foot-
print-based to consider transboundary effects of product use and minimize the risk of shifting problems to other regions.
Reporting on harmonized metrics of resource use and efficiencies at regular intervals across and within countries could
raise the profile of resource efficiency and drive ambitions to increase it. Resource-efficiency targets are the first step for-
ward, while national and international targets for sustainable levels of global resource consumption will also be needed.

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A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

2. Act on key leverage points across all levels of governance


To identify “hot spots” for policy action, national and international resource efficiency programmes could play a strategic
role in the coordination of monitoring to streamline institutional arrangements and promote synergies in national – and
cross-sectoral – policy interventions.
3. Take advantage of leapfrogging opportunities
Many fast-growing cities and developing economies are not locked into current design and business models. They
can benefit from a weaker bias3 against resource efficient investments, and the opportunity to avoid the resource- and
energy-intensive design for new infrastructure. Taking advantage of these opportunities requires access to finance and
international cooperation, in particular for low-income economies.

4. Implement a policy mix that builds incentives and corrects market failures
Aligning price signals and fiscal policies with the strategic goals of society can adjust the behaviour of firms and individuals,
so that their investment and purchase decisions reflect those of society as a whole. Implementing a policy mix that builds
incentives and corrects market failures for resource efficiency, including slowly shifting taxes from labour to materials in line
with the pace of decoupling success, can have a strong steering effect and help to avoid rebounds.

5. Promote innovations toward a circular economy


A switch from consumption of finite resources to recycled materials and renewable resources (such as sunlight, wind and
sustainably managed biomass) opens up the possibility of meeting the needs of more people over the long term. Before
recycling, extending the lifetime of material resources through direct reuse, repair, refurbishing or remanufacture, as well as
policies that encourage recycling to be considered as part of product design, are crucial to breaking through infrastructural
lock-in of existing production and consumption systems.

6. Enable people to develop resource-efficient solutions


New types of alliances to collaborate, experiment and learn are critical to a successful transition. Initiating and participating
in multi-stakeholder platforms, cross-cutting and expert networks and private-public partnerships will help promote coop-
eration and collaboration. Governments can provide skills training, improve education programmes and provide financial
support to spread risk associated with potential breakthrough innovations.

7. Unlock the resistance to change


Any reduced revenues and job losses occurring during transformations to a resource-efficient and sustainable global econ-
omy must be addressed to overcome resistance to change and to support workers and businesses that are impacted.
Upskilling training and education, recycling tax revenues back to affected industries and businesses to support transforma-
tion and protecting the very poor and vulnerable through policy packages that take their needs into account are some of the
ways resistance to change can be mitigated.

3 This relates to the fact that vested interests may not be as set on defending the status quo, and that consumption habits may not yet be as tied to mass consumption with rapid
obsolescence, thereby providing greater scope for new forms of consumption and leasing (Swilling and Annecke, 2012; Boston Consulting Group, 2010).

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ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

Special feature: mitigating air pollution and


achieving SDGs in cities through a systems
focus on natural resources and infrastructure
Air pollution has emerged as one of the primary risk fac- inclusive, resource efficient and cleaner, thereby advancing
tors for premature mortality in the 21st century, linked with the well-being of large urban populations. A case study of
6.5 million premature deaths annually, the majority of which Delhi, India, demonstrates how a bundle of strategies (pro-
are in global cities. Indoor and ambient air pollution in the vision of transit services, in situ slum rehabilitation within
form of fine particulate matter (PM2.5) is the dominant risk the urban fabric, resource-efficient multi-storey building
factor (accounting for 96 per cent of health impacts). construction with low-polluting materials, energy efficiency
among high consumers and replacement of dirty cooking
Addressing PM2.5 air pollution is challenging because fuels) can deliver basic services to about 7 million addi-
it arises from multiple sectors within the city boundary tional people while consuming a small fraction (less than
(industry, transportation, household cook stoves, waste 5 per cent) of the total amount of cement and electricity
burning, construction and road dust) and outside city used in the city today, while avoiding over 22 per cent of
boundaries (agricultural burning, industrial emissions and greenhouse gas emissions and air pollution (PM2.5) emis-
natural sources). Furthermore, PM2.5 concentrations in air sions and preventing more than 2,500 premature deaths
are influenced by local weather patterns in complex ways from dirty cooking fuel use alone. This case study indicates
and exacerbated by climate change (particularly extreme a significant improvement in human well-being, with a rela-
heat and drought events). tively small investment in resources, as a good example of
the concept of decoupling.
Lessons learned from air-quality management experiences
indicate that systems-based approaches complemented by For emerging economies undergoing rapid urbanization
end-of-pipe control strategies are important in addressing and industrialization, circular economy policies combined
the multi-faceted sources of PM2.5. The Special Feature with urban planning that enables beneficial exchange of
presents a systems approach anchored in the use of natu- materials and energy across different industry and infra-
ral resources, with a focus on essential infrastructures and structure sectors in cities are found to yield economic gains,
food supply in cities. The findings suggest pathways for natural resource conservation, greenhouse gas mitigation
reducing pollution while also providing multiple co-benefits and air-pollution reductions. Using modelled energy use in
that advance Sustainable Development Goals for econo- different sectors (residential, commercial and industrial) in
mies at differing stages of development. more than 630 Chinese cities, circular economy strategies
in cities had a demonstrated collective impact on national
For developing economies, strategic pathways are sustainability and greenhouse gas emissions targets, while
identified for transforming cities with underserved popu- also showing local health co-benefits specific to each city’s
lations, high inequality and high pollution-levels to become context. The models show that circular economy strategies

20
A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION


Case example of resource use (water and fossil fuels) footprints, and, air pollution and greenhouse gas emission footprints
FIGURE 4
of infrastructure provision and food supply in New Delhi, India (data from Ramaswami et al., 2017a; Nagpure et al., 2017a)

Electricity use Focil fuel use (non-transport) Biomass Fuel (non-trasport)


Transportation-Road & Air Food Building materials/construction
Water-wastewater & Municipal Solid Waste

Direct Transboundary = Fuel footprint


(734GJ)

Fuel

Direct Transboundary = Air pollution footprint


(76 Gg)

PM2.5

Direct Transboundary = GHG emission footprint


(51630 Gg)

GHG

Direct Transboundary = Water footprint


(M3)

Water
Withdrawal

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

applied in cities can collectively contribute an additional anchored in resource use and efficiencies, particularly in the
15 per cent to 36 per cent towards national greenhouse gas infrastructure and food supply sectors.
mitigation compared to conventional single-sector strate-
gies. Co-beneficially, about 47,000 (range 25,500 - 57,500) For cities, the bundle of policy strategies listed below,
premature deaths are estimated to be avoided annually when implemented together, can simultaneously reduce
through air-pollution reduction. air pollution and advance human well-being, achieving
multiple benefits in diverse world regions.
Developed economies also benefit from a systems
approach that systemically integrates resource efficiency §§ Develop urban-rural market mechanisms and avoid
in multiple sectors with air-pollution control, as has been urban area expansion to agricultural lands and lands
demonstrated from experiences in air-quality management that provide high-value ecosystem services to ensure
in countries including the United States. Air pollution is preservation of lands and reduction of dust/air pollu-
a worldwide challenge requiring a systems approach tion emissions;

21
ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

§§ Undertake strategic urban land-use and infrastructure §§ Promote multi-storey resource-efficient building con-
planning within cities and urban areas to reduce travel struction and energy efficiency for all buildings;
demand; §§ Promote culturally-sensitive behavioural change
§§ Invest in efficient transit systems to reduce vehicular strategies to reduce resource use, including a focus
emissions and congestion; on resource substitutions for dirty cooking fuels and
§§ Undertake inclusive development and in situ slum construction materials;
rehabilitation in multi-storey buildings within dense §§ Implement electricity grid transformations with high
city areas that provide essential services and access to levels of renewable energy;
livelihoods while reducing the travel burden on the poor; §§ Encourage business innovations to reduce agricultural
and solid-waste burning.

FIGURE 5 
Environment, human well-being and economic co-benefits estimated across 637 Chinese cities in a resource efficiency and
symbiosis scenario compared to the year 2010 baseline.

PM2.5 AVOIDED
MONEY SAVED Premature
~$8B/year Mortality
47,000
deaths/year

FUEL AVOIDED
8-15%
~55.6M
ton-coal
equivalent

AVOIDED MATERIAL GHG EMISSIONS


Use 5-15% 55M
~55M ton-coal
tons cement equivalent

Source: Ramaswami et al. 2017b

22
A SYSTEMS APPROACH TO RESOURCE EFFICIENCY AND POLLUTION REDUCTION

Where to from here?

Sustaining and managing resource use is a cornerstone of Overall, transformational policies are needed to enhance
sustainable development, particularly in terms of achiev- resource efficiency and sustainable resource use through-
ing environmental and socio-economic goals. A systems out the economy. There has been initial progress in estab-
approach considering all phases of natural resources life lishing instruments that foster a more sustainable use of
cycles – from extraction through production, consump- natural resources in production and consumption systems,
tion, recycling and final disposal – has been shown to including infrastructure management. Nevertheless, there
foster a better understanding of the physical basis of soci- remain huge opportunities for the future.
eties. This improved understanding can, in turn, inform the
design of effective policy measures across all sectors and Improved information and scenario analysis on the state,
levels of the economy to promote resource efficiency and trends and outlook of natural resource use, reported on
reduce pollution. a regular basis, can support effective and targeted policy
design and evaluation. The Global Assessment of Natural
The twin issues of reducing overconsumption and waste Resource Use and Management series of the International
of natural resources on the one hand, and providing secure Resource Panel aims to provide this knowledge base. All in
access to natural resources and food on the other, must be all, this report can be taken as a pilot, providing strategic
addressed simultaneously to ensure that neither surpasses elements for regular reporting based on a new and author-
the thresholds of a global “safe operating space”. Strategies itative database of the International Resource Panel on
and solutions should therefore be designed according to material flows. A report covering natural resources (water
national circumstances, but in a globally consistent manner and land) and greenhouse gas emissions is expected to be
by approaching the Sustainable Development Goals without released in 2019.
compromising other regions’ progress towards this end.

Conventional pollution control by add-on technologies


is bound to shift environmental problems and increase
resource consumption. Keeping natural resource use and
associated impacts within safe limits can only be achieved
by significant increases in resource efficiency within
production and consumption systems and infrastructure
provision. Transformations toward resource-efficient urban
infrastructures also have the co-benefit of increasing prog-
ress related to human health and well-being.

23
ASSESSING GLOBAL RESOURCE USE SUMMARY FOR POLICY MAKERS

References

Boston Consulting Group (2010). Winning in Emerging Market Cities: A Guide to the World’s Largest Growth Opportunity.
USA: BCG. 14

Nagpure, A., Boyer, D., Russell A., Ramaswami, A. (2017a). Greenhouse gases (GHG) and air pollution emission footprints
of infrastructure use in three Indian cities: Equity within & beyond city boundaries, J Cleaner Production (Under
Review).

Ramaswami, A., et al. (2017b). Urban Cross-Sector Actions for Carbon Mitigation with Local Health Co-Benefits in China.
Nature Climate Change (In Press).

Steinmann, Z.J.N., Schipper, A.M., Hauck, M., and Huijbregts, M.A.J. (2016). How many environmental impact indicators
are needed in the evaluation of product life cycles? Environ. Sci. Technol. 50(7): 3913-3919.

Swilling, M. and Annecke, E. (2012). Just transitions. Claremont, South Africa: UCT Press.

UNEP (2014). Decoupling 2: technologies, opportunities and policy options. A Report of the Working Group on Decoupling
to the International Resource Panel. von Weizsäcker, E.U., de Larderel, J., Hargroves, K., Hudson, C., Smith, M.,
Rodrigues, M.

UNEP (2017). Resource efficiency: potential and economic implications. A report of the International Resource Panel.
Ekins, P., Hughes, N., et al.

24
SUMMARY FOR POLICYMAKERS

ASSESSING GLOBAL RESOURCE USE


A systems approach to resource efficiency and pollution reduction

The way in which societies use and care for natural resources fundamentally For more information, contact:
shapes the well-being of humanity, the environment and the economy. Better Secretariat of International Resource Panel (IRP)
and more efficient use of natural resources can be one of the most cost- Economy Division
efficient and effective ways to reduce impacts on the environment, while United Nations Environment Programme
also achieving the socio-economic objectives of international sustainable 1 rue Miollis
development and climate goals. Viable pathways exist for society to Building VII
undertake such decoupling of economic growth from natural resource use 75015 Paris, France
and environmental impacts. But how can we get there? Tel: +33 1 44 37 14 50
Fax: +33 1 44 37 14 74
Email: [email protected]
Environmental and sustainability policies require a new evidence base that
Website: www.resourcepanel.org
makes it possible to monitor the scale of the physical economy, that is - the
amount of material, energy, water and land used and emissions generated
in making, using and providing goods, services and infrastructure systems.
This publication provides an assessment of the state, trends and outlook
of global natural resource use, with a focus on material resources as part
of the evidence base for policymaking for sustainable consumption and
production. The report pinpoints seven strategies for system-wide pollution
reduction and more sustainable resource use throughout the economy,
including consideration of appropriate policy instruments and good
practice examples from cities and countries around the world. A special
feature on the link between resource use, infrastructure, air pollution and
human health in cities is included.

ISBN: 978-92-807-3677-9 DTI/2141/PA

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