Living Well Within Our Environment: Part 2...Living Well Within Our Environment: Part 2 December...
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Living Well Within Our Environment: Part 2 December 2008 Fact Sheet No. 25 www.ces.vic.gov.au Mechanisms of change This fact sheet is one of a series, developed from material presented in Victoria’s first comprehensive State of the Environment Report. The Report is a major undertaking of the Commissioner for Environmental Sustainability and covers a broad range of environmental issues affecting the State. Its purpose is to improve community understanding of Victoria’s environment, and through the use of recommendations, to enhance its condition for present and future generations. The report was released in December 2008 and is available at www.ces.vic.gov.au Key findings • Victorians have proven talented and innovative, and with government support, they are well-equipped to deal with the challenges of moving into a post-carbon economy. Victorian industries want strong leadership and certainty from government as they adapt to this future. • Market based instruments – a way of rationally pricing the environmental impact of goods and services – are increasingly being used in Victoria. Provided that ecosystem services are adequately valued and that they are supported by legislation, MBIs are a valid way of internalising environmental pressures into the economic framework. • Technology has a significant role to play in reducing environmental pressures. However, due to associated inherent risks such as the rebound effect and the paradox of efficiency, technology alone must not be seen as a ‘silver bullet’. The environment doesn’t care how efficient our technologies are if overall pressures continue to increase. • Victorians recognise their ability to influence the environment through their actions as consumers. They will be further empowered to reduce their personal impact through government’s fostering of ethical and informed decision- making. Key mechanisms for living well within our environment The Living Well ‘Mechanisms of change’ section outlines four fundamental approaches to tackling the challenge of living well within, rather than at the expense of, the environment. The mechanisms covered are; governance, economic solutions, technology and individual action. These four elements have been selected as integral within society, and in which a change of direction would lead to a refreshed approach to natural resource management in Victoria. Figure 1. Governance supports each of economic instruments, technology and consumer behaviour Natural system governance Government and the community need a range of instruments to meet environmental objectives. It is therefore critical that environmental management is moved to the centre of government policy analysis and consideration. Currently, while Victoria has more than 50 Acts and nearly 30 strategies that relate to environmental management, the State of the Environment Report 2008 shows that at best they can be seen as holding the line on environmental degradation. At worst they have slowed the rate of decline or made no difference. Climate change, for example, presents multiple problems and potential vulnerabilities requiring holistic government planning and policy across a number of disparate areas. Such issues indicate the need for natural systems and sustainability governance to be integrated into government decision-making at the highest level. This would then provide a solid foundation for supporting the use of economic instruments, the development of new technology and a change in consumer behaviour as indicated in Figure 1. Strategic environmental assessment Strategic Environmental Assessment (SEA) is a tool used to better inform decision-makers on the environmental implications of government policies, plans and programs. SEA assesses the strategic objectives of plans to ensure that these do not conflict, in doing so it more effectively targets the causes of environmental impacts. For Victoria, SEA can therefore help to unveil contradictions between policies and detect environmental impacts that spill over into other sectors. It also monitors the cumulative and significant effects of projects over time (impacts which may occur beyond a project’s lifetime) in order to reduce its negative impacts and enhance potential environmental benefits. Economic solutions There are a number of economic instruments at the government’s disposal including rebates, financial incentives, pollution taxes and market-based instruments. Generally they work by incorporating all or part of the cost to the environment of a harmful activity into the economic cost of that activity. Rebates work by reimbursing a proportion of the cost of an activity that benefits the environment to those that engage in that activity. Current examples include rebates on solar hot water systems and water tanks. Financial incentives can be provided to industry to encourage the development and use of environmentally sustainable technologies, while pollution taxes are levied to create an incentive to decrease the amount emitted. Commissioner Environmental Sustainability Victoria
Transcript of Living Well Within Our Environment: Part 2...Living Well Within Our Environment: Part 2 December...
Living Well Within Our Environment: Part 2
December 2008 Fact Sheet No. 25www.ces.vic.gov.au
Mechanisms of change
This fact sheet is one of a series, developed from material presented in Victoria’s first comprehensive State of the Environment Report. The Report is a major undertaking of the Commissioner for Environmental Sustainability and covers a broad range of environmental issues affecting the State. Its purpose is to improve community understanding of Victoria’s environment, and through the use of recommendations, to enhance its condition for present and future generations. The report was released in December 2008 and is available at www.ces.vic.gov.au
Key findings
• Victorianshaveproventalentedandinnovative,andwithgovernment support, they are well-equipped to deal with the challenges of moving into a post-carbon economy. Victorian industries want strong leadership and certainty from government as they adapt to this future.
• Marketbasedinstruments–awayofrationallypricingtheenvironmentalimpactofgoodsandservices–areincreasinglybeing used in Victoria. Provided that ecosystem services are adequately valued and that they are supported by legislation, MBIs are a valid way of internalising environmental pressures into the economic framework.
• Technologyhasasignificantroletoplayinreducingenvironmental pressures. However, due to associated inherent risks such as the rebound effect and the paradox of efficiency, technology alone must not be seen as a ‘silver bullet’. The environment doesn’t care how efficient our technologies are if overall pressures continue to increase.
• Victoriansrecognisetheirabilitytoinfluencetheenvironmentthrough their actions as consumers. They will be further empowered to reduce their personal impact through government’s fostering of ethical and informed decision-making.
Key mechanisms for living well within our environment
The Living Well ‘Mechanisms of change’ section outlines four fundamental approaches to tackling the challenge of living well within, rather than at the expense of, the environment.
The mechanisms covered are; governance, economic solutions, technology and individual action. These four elements have been selected as integral within society, and in which a change of direction would lead to a refreshed approach to natural resource management in Victoria.
Figure 1. Governance supports each of economic instruments, technology and consumer behaviour
Natural system governance
Government and the community need a range of instruments to meet environmental objectives. It is therefore critical that environmental management is moved to the centre of government policy analysis and consideration. Currently, while Victoria has more than 50 Acts and nearly 30 strategies that relate to environmental management, the State of the Environment Report 2008 shows that at best they can be seen as holding the line on environmental degradation. At worst they have slowed the rate of decline or made no difference.
Climate change, for example, presents multiple problems and potential vulnerabilities requiring holistic government planning and policy across a number of disparate areas.
Such issues indicate the need for natural systems and sustainability governance to be integrated into government decision-making at the highest level. This would then provide a solid foundation for supporting the use of economic instruments, the development of new technology and a change in consumer behaviour as indicated in Figure 1.
Strategic environmental assessment
Strategic Environmental Assessment (SEA) is a tool used to better inform decision-makers on the environmental implications of government policies, plans and programs.
SEA assesses the strategic objectives of plans to ensure that these do not conflict, in doing so it more effectively targets the causes of environmental impacts. For Victoria, SEA can therefore help to unveil contradictions between policies and detect environmental impacts that spill over into other sectors. It also monitors the cumulative and significant effects of projects over time (impacts which may occur beyond a project’s lifetime) in order to reduce its negative impacts and enhance potential environmental benefits.
Economic solutions
There are a number of economic instruments at the government’s disposal including rebates, financial incentives, pollution taxes and market-based instruments. Generally they work by incorporating all or part of the cost to the environment of a harmful activity into the economic cost of that activity.
Rebates work by reimbursing a proportion of the cost of an activity that benefits the environment to those that engage in that activity. Current examples include rebates on solar hot water systems and water tanks.
Financial incentives can be provided to industry to encourage the development and use of environmentally sustainable technologies, while pollution taxes are levied to create an incentive to decrease the amount emitted.
Commissioner Environmental SustainabilityVictoria
Market-based instruments (MBIs) are a means by which governments address a market failure that leads to environmental degradation. MBIs put a price on ecosystem services and assets. Those that invest in ecosystem services can then be paid by those that cause pressure to the same services.
While there is great potential for economic solutions to reduce environmental pressures, each must be supported by robust legislation as well as an ethical decision making framework.
The role of technology
Advancements in technology are capable of achieving increased efficiency in existing modes of production or in developing new, less resource intensive production processes. Technology can thereby reduce the pressure on natural systems, and is a major imperative of both government and business.
There are two broad types of technologies available: cleaning technologies, which are those technologies that are added to existing production processes to control and reduce pollution (end-of pipe technologies and control devices), and clean technologies, which attempt to prevent pollution from occurring in the first place.
However, there are limitations to technology. For example, clean technologies that are designed to reduce environmental pressures by increasing efficiency also create the opportunity to use more natural resources. Therefore, as is the case for economic systems, technology alone must not be seen as a ‘silver bullet’ capable of solving all environmental problems.
Consumer ethics and behaviour
Current consumption patterns are unsustainable, particularly in industrialised countries and this is a major cause of environmental degradation. Changing consumer behaviour is the fourth key element in realising sustainability in Victoria.
Regulatory mechanisms and MBIs are two essential instruments that assist consumers in making environmentally ethical choices at the retail interface. Eco-labels, supported by regulation, interpret and simplify complex product lifecycle information so that consumers can make educated choices according to environmental criteria. Rational pricing, (itself a market based approach), puts a price on the environmental damage that a product or service incurs and incorporates that price into the consumer cost of the product. Education also plays a key role in influencing individual behaviour, and over the long term, environmental and philosophical education is essential.
‘Sustainability’ is best achieved through a systemic approach that addresses the various social and psychological dimensions driving individuals’ behaviour. Long-term attitudinal and behavioural change is best achieved through community-focused, personalised education, as opposed to large-scale media campaigns, which although useful in creating public awareness, are less effective in bringing about significant change.
What the Commissioner says
“Due to the fundamental dependence of the economy upon ecosystem services, environmental decision making should be moved to the centre of government.
“Some of the most important ‘environmental’ legislation does not lie within the administration of the Minister for Environment and Climate Change. It is in the hands of the central agencies such as Premier & Cabinet, Treasury, Planning, Public Transport and Roads & Ports, as well as others. Due to the interdependence of their portfolios with the natural environment, each of these ministers should consider him or herself an ‘environment minister’ and their decisions should be made with due regard for natural systems.
“A strategic, environmental approach to government decision-making will in turn support the increased development of each of: market based instruments, new technology and an ethical approach to consumption, each for environmental benefit.”
What you can do
• Investigateyourfamily’sopportunitiesforapplyingnewtechnologiesinthehome–theremaybeeconomicaswellasenvironmental incentives for doing so.
• Nexttimeyougoshoppinglookfor‘eco-label’informationon products such as energy star ratings and water efficiency labeling standards.
For more information
See the State of Environment Report Victoria 2008, Part 5; Living Well within Our Environment at http://www.ces.vic.gov.au
State of the Environment Victoria 2008 Fact Sheet SeriesPublished by the Commissioner for Environmental Sustainability Melbourne, Victoria, 2008©The State of Victoria, Commissioner for Environmental Sustainability 2008This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.
Authorised by the Victorian Commissioner for Environmental Sustainability, 16/570 Bourke Street, Melbourne, Victoria 3000
For further information contact the Office of the Commissioner for Environmental Sustainability, phone +61 3 9637 8000 or visit http://www.ces.vic.gov.au/SoE
DisclaimerThis report may be of assistance to you and every effort has been made to ensure that the information provided is correct. It is based largely on data and information provided by the Victorian Government. The Commissioner for Environmental Sustainability does not guarantee that the report is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.
