UNIDO submission to the outcome document - … · 01-11-2011 · The UNIDO Green Industry approach...
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UNIDO input for the zero-draft of the Rio+20 outcome document November 2011
Transcript of UNIDO submission to the outcome document - … · 01-11-2011 · The UNIDO Green Industry approach...
UNIDO input for the zero-draft of the
Rio+20 outcome document
November 2011
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Table of Contents
0. EXECUTIVE SUMMARY.........................................................................................5
1. INTRODUCTION ...................................................................................................8
1.1. The UNIDO position on Rio+20 ........................................................................................... 9
1.2. Key issues and conference priorities from the perspective of Sustainable
Industrialization ........................................................................................................................... 10
1.3. Structure of the report...................................................................................................... 12
2. GREEN ECONOMY: MAKING IT HAPPEN .............................................................13
2.2. Industrial policy for green economy................................................................................. 16
2.3. Greening industry and as a pathway to green economy: the UNIDO Green
Industry Initiative ......................................................................................................................... 17
2.3.1. Institutional Framework for advancing green industrialization ............20
3. ENERGY FOR A SUSTAINABLE FUTURE: TIME TO CLOSE THE GLOBAL ENERGY GAP
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3.1. Energy and Sustainable Development ............................................................................. 22
3.2. Sustainable Energy for All: Global leadership to drive success....................................... 24
4. WHAT SHOULD THE CONFERENCE ACHIEVE? KEY EXPECTATIONS FOR THE
OUTCOME ................................................................................................................25
4.1. Building consensus on global transition to green economy in the context of
poverty reduction......................................................................................................................... 25
4.2. A Framework for Action: defining global goals for Sustainable Development .............. 26
4.3. Minding the Gap: Greater focus on implementation ...................................................... 27
4.4. Strengthening inter-agency cooperation mechanisms as part of the institutional
framework for sustainable development ................................................................................... 28
4.5. Strengthening the engagement of the private sector: public-private
partnerships (PPPs) ...................................................................................................................... 29
4.6. Operational initiatives and networks: the role of Resource Efficiency and
Cleaner Production Network (RECP-Net) and Technology Centers ........................................... 31
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This paper has not been formally edited. It is submitted in response to the invitation from
Second Preparatory Committee to Member States and other stakeholders to provide inputs and
contributions in writing by 1 November 2011 for inclusion in a compilation document to serve as
basis for the preparation of zero draft of the outcome document. Designations such as
“developed”, “industrialized” and “developing” are intended for statistical convenience and do
not necessarily express a judgment about the stage reached by a particular country or area in
the development process. Mention of firm names or commercial products does not constitute
an endorsement by UNIDO.
0. EXECUTIVE SUMMARY
This document was prepared as the UNIDO response to the request by the
Second Preparatory Committee for Rio+20 to all Member States and relevant UN system
organizations “to provide their inputs and contributions in writing by 1 November 2011
for inclusion in a compilation document to serve as basis for the preparation of zero
draft of the outcome document.”
The United Nations Conference on Sustainable Development 2012, also
referred to as Rio+20, will be held in Rio de Janeiro on June 4-6, 2012, twenty years after
the Rio “Earth Summit” 1992. Despite the many commendable efforts of the past two
decades, and the widespread acceptance of the concept of sustainable development as
a convergence of the three pillars of economic, social and environmental
sustainability, its implementation remains elusive.
It is clear that, in order to give renewed momentum to sustainable development,
a new framework for action is needed. The time has come for a different approach that
is geared towards the delivery of results and is based on prioritizing an ambitious
agenda and building international cooperation around concrete initiatives that are
supported by clearly articulated quantitative targets, policies and best practices tools,
relevant institutions and adequate financing and mechanisms to monitor and report
overall progress.
UNIDO believes that Rio+20 offers a unique opportunity for the launch of firm
initiatives underpinned by measurable targets and objectives that will demonstrate
renewed commitment to concrete action aimed at achieving tangible progress in the
next two decades. There is an opportunity for the world to be well on its way to a
fundamental transformation of its energy and industrial systems by 2030, allowing
developing countries – many of them growing rapidly and at large scale – to leapfrog
conventional options and move directly to cleaner energy alternatives and greener
industrial processes and products, which will enhance economic and social
development.
UNIDO’s key contribution to Rio+20 is built around two major themes, which
are Sustainable Energy for All and Green Industry.
As part of its mandate and thematic priorities, UNIDO is contributing to the
preparatory process and will support the implementation of the Rio+20 outcomes with a
particular focus on tangible actions and initiatives enabling the global transition to green
economy through greening industrialization and building green industries in
developing countries and economies in transition.
UNIDO believes that the Rio+20 Conference should take stock of the positive
developments as well as the implementation gaps over the past two decades, and
initiate the adoption of sustainable development goals incorporating concrete targets
and milestones that will lay strong foundations for the post-2015 development agenda.
These goals should be based on a new development paradigm that integrates the three
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pillars of sustainability – economic, environmental and social – and provides a
framework for achieving inclusive, resource-efficient economic growth.
In this framework, UNIDO is committed to ensure that the three objectives
(energy access, energy efficiency and renewable energy) that support the goal of the
universal access to energy by 2030 are fully reflected in the proceedings and the
outcomes of the Conference.
Sustainable development cannot be achieved without sustainable industrial
development. The contemporary industrial history is full of examples of the
transformation of poor, inward-looking economies to higher levels economic
development and growth through industrialization. Industrialization is the vehicle for
widespread structural change, job creation and income generation, and therefore the
means to improve the quality of life of ordinary people and combat poverty. However,
in the past the economic miracles of industrialization have been achieved mostly using
the traditional growth method, which is highly resource-intensive. This model of growth
is no longer sustainable.
In response to the most pressing global challenges that demand urgent action
and will have to be addressed in Rio, a key policy development has been the
acknowledgement of resource-efficiency as a policy framework for the transition to
low-carbon development and for setting up sectoral priorities, particularly in the energy
and industrial sectors.
UNIDO’s response to these challenges is the Green Industry Initiative. This
sectoral approach to the operationalization of Green Economy aims at building national
capacities for accelerating the growth of the industrial sector in developing countries
within the appropriate policy frameworks that supports the progressive decoupling1 of
natural resource use from industrialization. It provides a platform for fostering the
positive role of industry in achieving sustainable development.
With less than four years remaining until 2015, it is clear that the Rio+20
Conference will serve as a defining moment for the international debate on the
establishment of an overarching post-MDG global framework for development. UNIDO
1 The UNIDO Green Industry Initiative recognizes the differences in the ’decoupling” agenda between
developing and developed countries. Developed countries should pursue the decoupling of natural
resource use and the environmental impacts from economic growth by increasing the productivity of
their economies. Developing countries, however, must be supported by developed countries to
reduce their natural resource consumption from economic growth and industrialization. "Decoupling"
in this context offers ways of re-thinking development strategies in favour of those that support
lesser dependence on primary resource extraction and intensity. UNIDO’s Green Industry Initiative is
designed to help developing countries to discover ways of “leapfrogging” the resource-intensive
industrial development.
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believes that such a future-looking framework should be built around clearly articulated
goals and targets for improvements in resource efficiency and resource productivity in
key economic sectors and services, such as energy, industry, transport, and the
management of natural resources, waste and water. Their implementation should be
driven by flagship initiatives, supported by implementation mechanisms based on
improved metrics for measuring and reporting process. Clearly UN agencies have a key
role to play in developing the necessary analytical work and providing implementation
support.
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1. INTRODUCTION
The United Nations Conference on Sustainable Development 2012, also
referred to as Rio+20, will be held in Rio de Janeiro on June 4-6, 2012. It will mark the
20th anniversary of the 1992 United Nations Conference on Environment and
Development (UNCED) held in Rio de Janeiro (i.e. The Earth Summit) and the 10th
anniversary of the 2002 World Summit on Sustainable Development (WSSD) in
Johannesburg.
These were the high-profile events that attracted high level of participation,
including Heads of State and Government. These events resulted in a number of
important outcomes, such as the Rio Declaration on Environment and Development
and Agenda 21, the Convention on Biological Diversity (CBD) and the United Nations
Framework Convention on Climate Change (UNFCCC). They launched a framework that
outlined the policies and targets for enhanced international cooperation for achieving
sustainable development. Over the past 20 years governments, businesses, and civil
society have accepted sustainable development as a guiding principle, which is now
firmly embedded in all sectors, institutions and policy areas.
However, twenty years down the road the global challenges have multiplied in
number, complexity and intensity. The world is still struggling to come together in a
concerted action to address climate change, water scarcity, poverty and sustainable
economic growth. As the upcoming Rio+20 Summit will assess the implementation gaps
and new challenges in the context of the needs and realities of the 21st
century, it is
hoped that one of the outcomes of this process will be a programmatic Agenda for
Action that stresses implementation action and a set of concrete targets, which will
help to launch the global economy onto a trajectory of green growth and sustainable
development. As the crises of the last years (energy, food, financial and climate change)
have demonstrated, a new development paradigm is needed with clear and prioritized
objectives, instruments and targets to support implementation.
The aim of the Rio+20 Conference is to secure renewed political commitment
for sustainable development by assessing progress to date, identifying remaining gaps in
the implementation of past commitments and addressing new and emerging challenges.
The Conference will focus on two major, intertwined themes: "a green economy in the
context of sustainable development and poverty eradication" and "the institutional
framework for sustainable development". As part of its mandate and thematic priorities,
UNIDO is contributing to the preparatory process and will support the implementation
of the Rio+20 outcomes with a particular focus on tangible actions and initiatives
enabling the global transition to green economy through greening industrialization and
building green industries in developing countries and economies in transition.
Despite the many commendable efforts of the past two decades, and the
widespread acceptance of the concept of sustainable development as a convergence of
the three pillars of economic, social and environmental sustainability, its
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implementation remains elusive. While progress towards sustainable development has
been achieved in some areas, the international community continues to face a number
of significant economic, social and environmental challenges, such as poverty, gender
inequality, lack of access to sustainable energy, exacerbating climate change and
scarcity of resources, such as water, materials, land, forests and ecosystems.
It is clear that, in order to give renewed momentum to sustainable development,
a new framework for action is needed. The time has come for a different approach that
is geared towards the delivery of results and is based on prioritizing an ambitious
agenda and building international cooperation around concrete initiatives that are
supported by clearly articulated quantitative targets, policies and best practices tools,
relevant institutions and adequate financing and mechanisms to monitor and report
overall progress.
1.1. The UNIDO position on Rio+20
UNIDO believes that Rio+20 offers a unique opportunity for the launch of firm
initiatives underpinned by measurable targets and objectives that will demonstrate
renewed commitment to concrete action aimed at achieving tangible progress in the
next two decades. There is an opportunity for the world to be well on its way to a
fundamental transformation of its energy and industrial systems by 2030, allowing
developing countries – many of them growing rapidly and at large scale – to leapfrog
conventional options and move directly to cleaner energy alternatives and greener
industrial processes and products, which will enhance economic and social
development.
The Rio+20 Conference should take stock of the positive developments as well as
the implementation gaps over the past two decades, and initiate the adoption
of sustainable development goals incorporating concrete targets and milestones that
will lay strong foundations for the post-2015 development agenda. These goals should
be based on a new development paradigm that integrates the three pillars of
sustainability – economic, environmental and social – and provides a framework for
achieving inclusive, resource-efficient economic growth.
Real success in advancing these objectives will require robust international
cooperation and action that is ambitious, urgent and effective. New models are needed
to harness collaborative power and complement what is generally described as the
"traditional" aid model. In this regard, one area of extensive collaboration that should
be explored further is that of public-private partnership (PPPs) between the United
Nations and the private sector business and industry. South-South cooperation (SSC)
that emphasizes knowledge sharing and endogenous capacity development paths
should also be strengthened.
UNIDO’s key contribution to Rio+20 is built around two major themes, which
are Sustainable Energy for All and Green Industry.
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On the one hand, UNIDO is committed to ensure that the three objectives
(energy access, energy efficiency and renewable energy) that support the goal of the
universal access to energy by 2030 are fully reflected in the proceedings and the
outcomes of the Conference. The interlinked objectives underpinning the goal of
Sustainable Energy for All are as follows:
1. Ensuring universal access to modern energy services – access to electricity and to
modern fuels and technologies for cooking, heating, and productive uses.
2. Doubling the rate of improvement in energy efficiency – increasing the current
pace of improvement to 2.5 percent per year, achieving a 40 percent reduction
in global energy intensity by 2030.
3. Doubling the share of renewable energy in the global energy mix – increasing the
current renewable energy share of global energy consumption to 30 percent.
On the other hand, UNIDO believes that the consensus around the concept of
Green Economy can only be reached if developing countries are provided with concrete
opportunities to participate in the global markets for environmental goods and
services, and if opportunities for sustainable development are created for them in the
international system for green economy.
UNIDO is bringing to Rio its flagship initiative, Green Industry, which outlines
policy frameworks, instruments and concrete examples of good practice measures and
programmes that support the greening of the industrial sector in developing countries
and economies in transition. UNIDO’s Green Industry initiative is designed to help
developing countries to create opportunities to join the growing global market for
greener products and services. It promotes sustainable patters of production and
consumption, i.e. patterns that bring quality of life to consumers and are resource- and
energy efficient, low-carbon, low-waste, non-polluting and safe, and which manufacture
products that are responsibly managed through their lifecycles.
The Rio+20 outcome document should therefore provide a framework for
international cooperation in support of the developing countries transition to green
economy through green industrialization, and in the context of sustainable development
and poverty eradication.
1.2. Key issues and conference priorities from the perspective of Sustainable
Industrialization
Sustainable development was originally conceptualized to encompass three
pillars: economic, environmental and social. However, over the past two decades it has
increasingly been perceived as more of an environmental issue, while development has
been firmly linked to the economic growth agenda. Addressing this imbalance calls for a
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new paradigm where sustainable development is placed at the centre of economic
development and where growth and sustainability become mutually reinforcing.
The two themes of Rio +20 – Green Economy in the context of poverty reduction
and Institutional Framework for sustainable development – represent what we believe
is a concrete attempt to find this balance, which is absolutely essential if sustainable
development is to connect with the lives of ordinary people in the poorest countries and
be a real force of widespread poverty reduction.
Sustainable development cannot be achieved without sustainable industrial
development. No country has achieved developed status without the development of its
industrial sector. Industry matters for development. It is the vehicle for widespread
structural change, job creation and income generation, and therefore the means to
improve the quality of life of ordinary people and combat poverty.
Green growth and green economy must form the foundations for the future, but
they are not ‘one-size fits all’ concepts. Rather, they must be owned and molded by
individual countries according to their own development needs and priorities. Green
industry has been shown to work in the real world and in difficult development
contexts, and is applicable, relevant and affordable for a wide range of countries.
Green industry is a call for inclusive growth and development. It is especially a
call for inclusive globalization. We must not ignore this call in Rio. There are too many in
this world who have so little and deserve so much more. Green industry matters for
them as their main path to sustainable prosperity.
Enduring economic and social development requires accelerated and widespread
industrialization, as the only proven means of lifting people out of poverty, delivering
the required goods and services, creating wealth and employment, and raising
standards of living. For this reason the growth of the industrial sector is an indispensable
priority for developing countries seeking to create jobs and prosperity.
On the other hand, energy is perhaps the most pressing of all global challenges
that demand urgent action and will have to be addressed in Rio, because it is at the
heart of all the very critical economic, social and environmental problems. It is therefore
our conviction that energy should be at the forefront of the Rio+20 debate and in the
centre of our efforts to develop common approaches to the Rio Conference.
Energy is, of course, central to sustainable development and its three pillars. This
has been argued and demonstrated in a great number of our reports and publications.
We no longer need to be convinced that energy is important to the global sustainability
of the development process. It is now widely accepted that energy should thus have a
prominent place in the Rio+20 agenda, and should constitute one of the focal areas in
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devising our common approaches to Rio. Furthermore, the outcome of the Conference
should provide a solid implementation framework for concrete actions on energy,
particularly in those areas that present immediate actionable opportunities and promise
many co-benefits, such as energy access, energy efficiency and renewable energy.
UNIDO believes that the time is right and that real opportunities exist for
concrete, scalable progress in these areas. There is an opportunity for the world to
achieve by 2030 a fundamental transformation of its energy systems, and to realize the
“Energy revolution” that is required to move to a Green and inclusive Economy. What is
needed is global leadership, commitment at the highest level and specific goals and
targets by which to measure our progress.
1.3. Structure of the report
This document is prepared in response the invitation from the Co-Chairs on
behalf of the UNCSD Bureau to submit concrete proposals for the outcome document
on the objective and two themes of the Conference by 1 November, 2011. It outlines
the UNIDO position on key issues that underpin the global debate in the run-up to
Rio+20. It also discusses the contribution of the Organization to the upcoming
Conference. It provides information on the UNIDO flagship initiatives, such as Green
Industry and Sustainable Energy for All. It also highlights the UNIDO activities with
particular relevance to the Rio process. In doing so, it attempts to answer the following
questions:
a. What are the expectations of the outcome of Rio+20 and what are the concrete
proposals in this regard, including views on a possible structure of the Outcome
document?
b. What are the comments on existing proposal (e.g. a green economy roadmap,
framework for action, sustainable development goals, a revitalized global
partnership for sustainable development, others)?
c. What are the views on implementation and how to close the implementation
gap; which relevant actions are envisaged as being involved?
d. What specific cooperation mechanisms, partnership arrangements, or other
implementation tools are envisaged and what is the relevant time frame for the
proposed decisions to be reached and actions to be implemented?
Section I introduced the UNIDO position on key issues pertaining to the
objectives and themes of the UNCSD (Rio+20) and the post-Rio implementation
framework. It discussed the Rio objectives from the perspective of sustainable
industrialization and the role of industry in achieving sustainable development. It argued
that the right balance between the three pillars of sustainable development is needed in
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conceptualizing the new sustainable development paradigm, which Rio+20 outcome
document is expected to put in place.
Section II discusses the concept of green economy and that of green industry, as
a specific sectoral approach under the green economy objective that holds the biggest
potential for concrete and measurable results. It provides comments on the importance
of industrial policy for achieving the green economy objectives and discusses
institutional framework for sustainable industrialization.
Section III highlights the role of universal energy access, underpinned by energy
efficiency gains and the scaling-up of the renewable energy deployment in achieving
sustainable development. It discusses a major High-Level Initiative on Sustainable
Energy for Al by 2030. It also argues to the inclusion of the energy targets in the
Sustainable Development Goals, which is expected to be introduced as one of the
outcomes of the Rio+20 Conference.
Section IV discusses the expected outcomes of Rio+20 and key issues that
pertaining to the green economy debate. It argues that in order to achieve consensus
around the concept of green economy as a pathway to sustainable development,
actions should be taken to ensure that concrete incentives and opportunities are in
place for developing countries to participate in the international system for green
economy, e.g. in the global markets for environmental goods and services. The section
concludes the paper by showing possible ways of implementation through innovative
market-driven schemes and enhanced cooperation within the UN system, and between
the public and the private sector.
2. Green Economy: Making it Happen
Strategies aimed at supporting the transition to a Green Economy must be
geared to provide assistance to strengthen the capacity of developing and emerging
countries to address these challenges at global, national and community levels, seeking
out and sharing best practices, providing innovative policy advice and linking partners
through pilot projects that help developing countries build sustainable industries and
promote sustainable economic development.
An important requirement for the transition to a Green Economy is ensuring that
governments have an integrated framework of incentive structures, policies and
regulations to encourage the development of green industries.
Governments are not always well-equipped to deal with the cross-cutting and
long-term nature of many environmental challenges. Environmental protection,
innovation, public health, industrial growth, trade and investment are often seen as
separate policy issues. As is the case of many developed countries, governments in
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developing and transition countries have failed to integrate objectives to create the
common goal of sustainable development, and more specifically green industries.
Consequently, environmental policies remain inconsistent with industrial development
policies, and vice versa.
History shows that successful efforts to decouple economic growth from
environmental pressures have been underpinned by effective policy frameworks which
address a range of market, institutional and information failures. In other words, there
is no single policy instrument that promotes Green Economy; multiple instruments must
be applied simultaneously within an integrated and interconnected framework.
Governments can promote Green Economy through a broad range of public
policy measures (e.g. environmental, industrial, and regional development policies) and
supporting infrastructures. Such measures cover both supply and demand aspects.
Governments also have a key role to play in influencing certain framework conditions
(e.g. finance, education, innovation), which create a conducive environment.
Policy development needs to be supported by effective strategies and processes
which integrate the economic, social, and environmental dimensions of green industries
and economic activities. This integration needs to occur both horizontally (across
government agencies), and vertically (within tiers of government). Moreover, the
promotion of Green Economy requires resources and commitment across multiple
sectors of government.
The success of Green Economy policies is influenced by the context in which they
are being deployed. As a general rule of thumb, balanced policy strategy and instrument
mix is preferred, encompassing policy and strategy (including where appropriate
visioning); regulation, implementation and enforcement; market based instruments,
information and other business support; and technology and innovation support.
Preferably, aims and objectives should be defined in a participatory process leading to
negotiated agreements and industry commitment.
Policies that promote business-driven voluntary approaches, such as Resource
Efficient and Cleaner Production, contribute to decreasing the use of natural resources
and of environmental burdens, and to mitigation, preparedness and adaptation to likely
impacts of climate change. At the same time, these policies promote increased
productivity and the creation of new jobs and wealth.
2.1. The role of industry in sustainable development
Sustainable development cannot be achieved without sustainable industrial
development. About one fifth of global income is generated directly by the
manufacturing industry, and nearly half of household consumption relies on goods from
industrial processes. People’s needs for food, transportation, communication, housing,
health and entertainment are met largely by manufacturing. Since the Industrial
Revolution, waves of industrial innovation have shaped how people work and live.
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During the 19th and 20th centuries, developed countries relied on manufacturing to
reduce poverty and improve the quality of life of their growing populations. Today,
developing countries are counting on industrialization to do the same for them.
At the same time, industry accounts for more than 30% of global electricity use,
20% of direct greenhouse gas emissions, over a quarter of primary resource extraction
and 22% of water consumption (ranging from 10% for low- and middle- income
countries to 60% for high-income countries, due to rapid industrial development).
Global material consumption is projected to triple from 50 to 160 billion tonnes per year
by 2050. Moreover, many countries already face severe environmental degradation and
resource depletion, which undermines the potential opportunities for sustainable
development. It is therefore increasingly acknowledged that sustained growth is only
possible when economic development is decoupled from increased resource use and
environmental impacts. Sustainable development urgently requires a widespread
greening of industrialization.
The greening of industries has become a core determinant of economic
competitiveness and sustainable growth. Since resource inputs represent an important
cost of production for industries, efficiency improvements can be a significant lever for
competitive advantage. The greening of industries also plays a role in poverty reduction,
through promoting energy security, health conditions, jobs, and reduced costs through
increased productivity.
Massive global industrial structural change is already taking place. Worldwide,
there is a shift in manufacturing towards new and high-tech sectors. The main drivers in
developed countries are loss of international competitiveness and long-term excess
production capacity in several sectors. Growing domestic markets due to rising incomes
and relocation of industrial production to exploit wage differentials, as value chains
become more fragmented, are behind the structural change that is occurring in
developing countries.
The obsolete and inefficient technologies and operating practices currently in
use in many industries in developing countries need to be addressed. In today’s
developing world, industries are using more material and energy than is required by
their production processes. In addition, producers and consumers have adopted
patterns of production and consumption that do not take into account the planet’s
available resources and its assimilative capacity for emissions coupled with a growing
population. These issues are alarming for sustainable development; therefore
appropriate concepts need to be adopted and appropriate measures taken. The
challenges that need to be addressed include:
• Resource efficiency;
• Chemical safety;
• Ecosystem services and water management;
• Transformation of the energy systems;
• Expanding access to modern and clean energy.
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Decoupling the use of natural resources from economic growth will be a key
challenge for human society. Currently, the consumption of materials, water and
energy, as well as the generation of waste and emissions, is increasing in step with
economic activity. But the planet’s available resources and its assimilation capacity for
emissions are limited, a situation which is further complicated by continued population
growth. In the past, progress in decoupling emissions from economic growth has been
slow. Most countries have experienced a relative drop in emissions relative to GDP but
absolute emissions are still rising. International trends show also that the declines in
energy or material intensities have not been sufficient to offset a growing demand;
absolute levels of energy and materials consumption have not declined.
The global challenge of the future is to decouple the consumption of natural
resources from economic growth in absolute terms. It will be the prerequisite for any
sustainable industrial development and the long needed growth of industrial production
in developing countries. Numerous studies indicate that the costs of not taking action to
curb this problem are far less than the costs of action.
Fig. 1 Decoupling economic growth from consumption of natural resources
Measures aimed to support the transition to a green economy need to promote
the ability of industries to “produce more with less”. The importance of promoting
green industrial practices is not only to decouple industrial consumption of natural
resources and release of emissions from industrial growth, but also to increase
industry’s productivity, encourage the creation of new industries, allow greater access
to global markets, and create jobs that support environmental improvements and
resource efficiency.
2.2. Industrial policy for green economy
There is a growing understanding that the shift towards a green economy cannot
be left to market forces alone, and will require governments to introduce appropriate
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incentives, disincentives and regulations that govern specific forms of production. The
global economic debate has seen a renaissance of industrial policy as a necessary
element of economic development policy, especially at the time of globalization,
growing global environmental challenges and multiple global crises - financial, food,
climate change and energy. None of these problems can be solved in isolation.
The new industrial policy is seen as a coherent framework for green growth,
facilitating a shift from conventional patterns to low-carbon growth paths. It is closely
linked with technology transfer, innovation policy, competitiveness, and with facilitating
the structural change needed to upgrade to greener industrial production and green
industries.
Industrial policy can help driving such green global industrial structural change,
and hence contributing to the transition to a green economy. It can play a significant
role as information and technology facilitator, both at the national and international
level. This will allow sectors and countries to plan for their future resource- and energy
demands, and pay closer attention to the environmental implications of upcoming
structural changes. For example, there is immense potential for reductions in energy
intensity in high energy-consuming manufacturing sectors such as iron and steel, non-
ferrous metals, pulp and paper, chemicals, petrochemicals and non-metallic mineral
products.
Moreover, industrial policy can set the basis for anticipating and managing
worldwide restructuring and diversification trends, not only towards higher productivity
and technologically advanced sectors, but also towards more environmentally friendly
ones. Increasing investment in this sectors (e.g., renewable energy sources) helps
dealing with the environmental effects of fossil-fuels use and is one of the industrial
policy mechanisms most widely used by governments to deal with climate change
concerns.
Finally, an industrial policy for green growth is needed to increase the
competitiveness of the industrial base of developing countries in the markets for green
goods and services, and take advantage of the opportunities for trade and new jobs.
The UNIDO Green Industry approach addresses these issues in the context of poverty
reduction and sustainable development.
2.3. Greening industry and as a pathway to green economy: the UNIDO Green
Industry Initiative
UNIDO’s response to these challenges is the Green Industry Initiative. This
sectoral approach to a Green Economy aims at building national capacities for
accelerating the growth of the industrial sector in developing countries within an
appropriate policy framework and in respect of the environment. It provides a platform
for fostering the positive role of industry in achieving sustainable development.
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UNIDO is bringing to Rio its flagship concept as a concrete initiative that brings to
developing countries a set of activities in the industrial sector that would facilitate and
promote sustainable patterns of production and consumption, and the opportunities to
join the growing global market for greener products and services. Green Industry
enables industries to pursue low-carbon objectives, resource efficiency and greater
social and environmental responsibilities for their operations and products, while at the
same time saving money and increasing their competitiveness. Furthermore, the Green
Industry approach stimulates the creation of new jobs (i.e. green jobs), new business
ventures and drives technology development and innovation.
It should be noted that while the Green Economy concept offers a macro-
economic view of green transition across all the economic systems and sectors, Green
Industry zooms in on the productive and tradable goods sectors. In this context, the
UNIDO concept of Green Industry offers developing countries some answers to the
current questions and concerns with regard to the cost and benefits (but also the
opportunities) of the global transition to Green Economy.
UNIDO’s Green Industry Initiative aims at transforming the industrial sector by
employing resource-efficient processes and technologies, and by increasing the share of
green goods, jobs and services in the economy. By means of this sectoral
transformational change, developing countries can leapfrog to more efficient, and thus
less costly, technologies and processes, which allow them to better use limited
resources to pursue economic growth.
Figure 2: UNIDO Green Industry’s two-pronged strategy
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As shown in Figure 2, the UNIDO Green Industry Initiative is underpinned by a
two-pronged strategy. Green Industry calls for:
- Greening of Industry – ensuring that all industries, regardless of sector, size and
location, continuously improve their environmental performance and resource
productivity. This includes a commitment to, and actions for, reducing the
adverse environmental impacts of industrial processes and products by using
resources more efficiently; transforming industrial energy systems towards
greater sustainability by expanding renewable energy sources; phasing out toxic
substances; and improving occupational health and safety at industrial level.
- Creating Green Industries – stimulating the development and creation of
industries that deliver environmental goods and services. Green industry is a
rapidly expanding and diverse sector that covers all types of services and
technologies that (directly or indirectly) help to reduce negative environmental
impacts and resource consumption. This includes material recovery, recycling,
waste treatment and management, as well as the provision of environmental
and energy consulting and services, such as energy service companies (ESCOs)
and companies that provide monitoring, measuring and analysis services.
The highest possible productivity of resources is the key to a sustainable
economy, and industry is central to developing the means of ensuring progress towards
continuously increasing resource productivity. The UNIDO Green Industry Initiative is
designed to enable the potential of industries and enterprises to increase their
profitability and competitiveness by producing more with less, and to reduce their
environmental footprint while at the same time delivering value-added goods and
services and creating job opportunities.
Green industrial approaches serve to decouple resource use and pollution from
industrial growth and increase productivity, encourage the creation of new industries,
allow greater access to global markets, and create jobs that support environmental
improvements and resource productivity. The benefits of the Green industry approach
include:
a) A decoupling of growth from resource use and pollution;
b) The creation of new jobs and business ventures, and the promotion of
technology transfer and innovation;
c) Enabling industry to improve the efficiency of resource use (including energy,
materials and water);
d) A reduction of the environmental impacts of industrial production, coupled with
a reduction of production costs and an enhanced competitive advantage;
e) Improved protection of human health and the environment;
f) Promotion of sound management of chemicals, and;
g) Support for the development of safer chemical substitutes and innovative and
inherently safe products and technologies.
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It is therefore crucial that developing and transition countries are given the
possibility to take advantage of the opportunities connected to Green Industry. This
requires joint and concerted efforts of governments, development partners,
international organizations, the private sector and civil society. Green Industry is aimed
at mainstreaming environmental, climate and social considerations into the operations
of enterprises. It provides a platform for addressing global, interrelated challenges
through a set of immediately actionable cross-cutting approaches and strategies that
take advantage of emerging industry and market forces.
Green Industry is therefore an important pathway to achieving sustainable
industrial development and to operationalizing the transition to a Green Economy. The
UNIDO Green Industry initiative works to:
- Incorporate green industry in industrial policy-making and related
development plans and strategies, such as improvements of the business
environment and supportive market frameworks and fiscal, trade,
technology and training policies;
- Enhance and expand the availability of advisory services for small and
medium enterprises (SMEs) to support the greening of industries and the
establishment of new green industries;
- Develop and support national learning and innovation hubs that bring
together the business community, academia and the public sector for the
collaborative development and realization of sustainable pathways for the
transformation of priority sectors through research, technology
development and training;
- Develop and implement replicable models for green industry, including
those that support climate-resilient solutions by combining the mitigation
of industrial GHG emissions with the adaptation of industry to the impacts
of climate change, and those that support the adaptation and adoption of
the environmentally sound technologies (EST), e.g. eco- industrial parks.
- Develop Roadmaps and National Implementation Plans (NIPs) for reducing
resource intensity and decoupling natural resource use from industrial
production in the context of the national transition to green industry
2.3.1. Institutional Framework for advancing green industrialization
Removing gaps in the normative framework
From a public policy perspective, the greening of industries is a cross-cutting
exercise, which traverses a range of policy streams. These include industrial policy (e.g.
technology development), environmental policy (e.g. resource conservation measures),
and regional development policy (e.g. provision of local infrastructures). Within this
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policy context, UNIDO is promoting the greening of industrial policy, in which
institutional processes promote comparative advantage for resource efficient and low
polluting sectors of the economy.
UNIDO works closely with ministries of industry and trade to ensure that Green
Industry concepts are integrated into national industrial policies. This also ensures that
all interventions are suited to country specific needs, level of industrialization and types
of industries. By partnering with ministries of industries and trade, the risk of
interventions having negative effects on business development (e.g. the development of
regulations or standards that could seriously affect the competitiveness of businesses) is
decreased and enterprises' capacity for innovation encouraging it to search for and
implement cleaner solutions stimulated and harnessed.
The UNIDO Green Industry approach assists relevant ministries to create
effective policies, incentives, and infrastructures that promote the greening of the
industrial sector. This includes measures to:
• Review/create the necessary normative framework to encourage the growth of a
recycling industry.
• Remove perverse subsidies on the consumption of material and energy inputs in
industrial processes.
• Remove financial disincentives to enterprises adopting green investments or
green patterns of operation.
• Review/create the necessary science and technology normative framework to
encourage green innovation as well as transfer, develop, adapt cleaner process
technologies, recycling technologies, renewable energy technologies, and other
environmentally sound technologies.
• Review/create the necessary normative framework to encourage the growth of a
product design community with a focus on environmentally sound product
design.
• Review/create the necessary normative framework to allow enterprises to
obtain locally certifications against environmental standards.
• Assist in the adaptation and introduction of policy instruments for resource
efficiency.
Removing gaps in the support system
A good normative framework is necessary, but is not sufficient for promoting
wide-scale adoption of green investments and green patterns of operation by
enterprises. For enterprises to become truly green they must have a variety of
specialized enterprises in the green or environmental goods and services, sector to
support them. Such enterprises would include, among others: technology providers,
providers of specialized infrastructure (landfills, recycling plants, destruction plants,
centralized wastewater plants, etc.) specialized consulting services, laboratory services.
In turn, entrepreneurs may need support to take the additional risks of launching
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businesses in an emerging environmental goods and services sector. The Green Industry
approach spurs the growth of new enterprises to do the same for the environmental
goods and services sector. More specifically, UNIDO assists relevant ministries to:
• Make entrepreneurs aware of the opportunities that exist for new green
businesses.
• Assist them to build up the technical and commercial skills they require to be
able to take advantage of these new opportunities. This could extend to assisting
universities or other bodies of higher learning, or vocational training
establishments, to establish new curricula.
• Where conditions require it, directly establish the necessary support institutions
(for example, accreditation bodies for certification systems, or where markets
are weak or small and a first-mover is required, or research facilities at
universities to improve innovation and applied research).
Removing gaps in the industrial sector’s knowledge and skill set
As has always been the case in any phase of industrial development,
entrepreneurs and more generally those working in enterprises need to have the right
set of knowledge and skills to change their enterprises (in this case, to “green” them). A
long-term requirement is that schools and the university system turn out graduates with
the right basic skills. UNIDO partners with universities and other bodies of higher
education to integrate green industry considerations into existing curricula. However,
there is also much skills and knowledge build-up that occurs after schooling. Here, too,
UNIDO draws on its long experience in capacity-building to assist the relevant ministries
to build up the necessary green technical, managerial, knowledge and skills in
enterprises throughout the industrial sector, and in developing public private
partnerships in the environment field.
3. Energy for a Sustainable Future: Time to Close the Global Energy Gap
3.1. Energy and Sustainable Development
Worldwide, about 1.4 billion have no access to electricity. Up to a billion more
have access only to unreliable electricity networks. Almost 3 billion people rely on solid
fuels (i.e. traditional biomass and coal) for cooking and heating. A well-performing
energy system that improves efficient access to modern forms of energy would
strengthen the opportunities for the poorest people on the planet to escape the worst
impacts of poverty. Access to energy provides consumers with the means to generate
income – and that in turn creates wealth and new markets. Yet the International Energy
Agency predicts that in 2030 nearly as many people will lack modern energy services as
do today.
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Access to clean, affordable energy is a cornerstone of green economy and
sustainable development. The pressing need for universal energy access is also at the
heart of the global poverty solution. While much of the developing world strives to find
the means to address this huge deficit in access to modern energy, the world as a whole
is struggling to shift energy production and consumption towards cleaner and greener
patterns to mitigate the effects of climate change. These twin forces are inexorably
shaping the global sustainability agenda and creating both opportunities and challenges for
all countries.
Energy is therefore central to sustainable development and poverty reduction
efforts. It affects all aspects of development – social, economic, and environmental –
including gender inequality, economic growth, climate change, food security, health and
education, and the achievement of the Millennium Development Goals.
Perhaps the most critical challenge related to energy for sustainable development is
how to increase and support ongoing access to affordable modern energy services, while
also ensuring that these are provided in an efficient manner and do not cause adverse
environmental and socio-economic impacts. This point was well captured in the report
launched in 2010 by the UN Secretary-General’s Advisory Group on Energy and Climate
Change (AGECC). The report highlights two fundamental energy issues – energy access and
energy efficiency – and their close links to sustainable development and climate change. At
the same time, switching to renewable energy cuts greenhouse gas emissions and
demand for depletable fossil fuels – mitigating the risk of catastrophic climate change,
improving energy security, enabling off-grid solutions and reducing the price pressure,
particularly on oil, that threatens to cripple many developing country economies.
Together with its partners in UN-Energy, UNIDO will bring to Rio+20 its work in
the area of sustainable energy, building on the recommendations of the AGECC and the
political momentum created by the General Assembly Resolution 65/151 designating
2012 as the International Year of Sustainable Energy for All.
At the UN Millennium Summit in 2000 and the World Summit on Sustainable
Development in Johannesburg in 2002, the international community sought to
accelerate progress on this global agenda by: 1) adopting the Millennium Development
Goals; and 2) urging intensified work on the 1992 action plan and implementation of the
public-private partnerships announced in Johannesburg on health, food and agriculture,
water, energy, and biodiversity.
The Johannesburg Plan of Implementation (JPOI) thus created a foundation for the
future “green” economy and low-carbon growth strategies. However, the follow-up to
the JPOI over the last decade has been limited. The Rio+20 Conference will review
progress on the internationally agreed goals in the Agenda 21, MDGs and the
Johannesburg Plan of Implementation. This provides a perfect opportunity for the UN
system, governments and civil society to discuss with renewed commitment the Energy
for Sustainable Development Goals.
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3.2. Sustainable Energy for All: Global leadership to drive success
The Secretary-General of the United Nations, Mr. Ban Ki-moon has been leading
a process to ensure high-level political support and commitment in the area of climate
change and energy since the beginning of his tenure. In 2009, he established AGECC to
provide him with clear recommendations on energy issues in the context of climate
change and sustainable development. The group brought together a wide range of
stakeholders (from the private sector, foundations, research organizations and think
tanks, as well as UN agencies) with the mandate to provide the Secretary-General with
timely and politically relevant advice on energy issues that are critical to making
progress on climate change.
The Secretary-General has expressed his firm conviction that now is the time to
raise energy to the top of the international agenda and to make sustainable energy for
all a reality on the ground around the world. To that end, he is mobilizing key
constituencies from all sectors of society in a major global initiative that will shape the
fundamental policy and investment decisions needed to put countries on a more
sustainable energy pathway over the next two decades.
The 2012 International Year of Sustainable Energy for All and the Rio+20 summit
in June 2012 present us with a historic opportunity. The Secretary-General has invited
leaders from business, government, international organizations and civil society to come
together to develop and launch this global energy initiative. The aim is to provide clear
actions for all to take – locally, nationally, regionally and globally.
The Sustainable Energy for All Initiative will demonstrate the actions which could
make the achievement of these targets possible, and in so doing, facilitate the
deliberations of Member States at the Rio+20 Conference on Sustainable Development
in June 2012. A report by the Secretary-General on the International Year of Sustainable
Energy for All, designated by the General Assembly, will be presented to the General
Assembly in September 2012.
The Secretary-General’s Sustainable Energy for All initiative calls for urgent
action on the sustainable energy agenda in the context of poverty eradication, focusing
in particular on achieving universal access to modern energy services by 2030, while also
improving energy efficiency and scaling up the deployment of renewable energy by
2030.
To organize these efforts, the Secretary-General formed a new High-Level Group
on Sustainable Energy for All, led by Kandeh Yumkella, Director-General of UNIDO, Chair
of UN-Energy, and by Charles Holliday, a global business leader. Its immediate task is to
recommend an Action Agenda that identifies concrete commitments for stakeholders to
move the world toward the 2030 goal. The development of the Agenda for Action,
which will be launched at the Rio+20 Conference is supported by UNIDO, UNF, UNDP
and other UN Energy members.
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Access to sustainable energy, supported by energy efficiency gains and scaling up
the deployment of renewable energy is a fundamental prerequisite for moving towards
the green economy. The urgent need for universal energy access is at the core of the
global sustainability debate not least because access to sustainable, clean and modern
energy is central to poverty reduction and to most of the environmental challenges the
world is facing, such as climate change.
It is therefore suggested that energy should be prominently reflected in the
overall outcome of the Rio+20 Conference as a specific initiative mapped out as a set of
concrete actions set against concrete targets and timeline and supported by a toolbox
of policy approaches as well as by improved metrics and reporting mechanisms. Energy
goals should also be explicitly included in the debate on the global sustainability goals as
a future framework for development after 2015, that Rio+20 is expected to address.
(see Section 4.2 below on Global Sustainability Goals).
With less than four years remaining until 2015, it is clear that the Rio+20
Conference will serve as a defining moment for the international debate on the
establishment of an overarching post-MDG global framework for development. UNIDO
believes that such a future-looking framework should be built around clearly articulated
goals and targets for improvements in resource efficiency and resource productivity in
key economic sectors and services, such as energy, industry, transport, and the
management of natural resources, waste and water. Their implementation should be
driven by flagship initiatives, supported by implementation mechanisms based on
improved metrics for measuring and reporting process. Clearly UN agencies have a key
role to play in developing the necessary analytical work and providing implementation
support.
4. What should the conference achieve? Key expectations for the
outcome
4.1. Building consensus on global transition to green economy in the context of
poverty reduction
A transition to green economy will have significant development impacts on
developing countries. While changes in energy markets will be the main driver, there
will also be significant changes in the industrial sector. The impact on poor developing
countries will be through trade and price changes for their products and through
investment projects that target natural resources, such as wood industry and agro-
industry. The changes in the global economy will provide both opportunities and risks
for developing countries.
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Increased export opportunities for clean energy and related energy technologies
could provide significant positive benefits in terms of growth and poverty reduction. On
the other hand, increased competition for natural resources and new trade regulations,
such as environmental certification and labelling, may restrict access to global markets
and opportunities for growth.
In order to maximize the opportunities for poverty reduction from the transition
to green economy, specific actions under this heading should be taken to promote
sustainable production and consumption as well as wider opportunities for developing
countries to enter global markets for environmental goods and services. Only when
Green Economy becomes a source of growth and a driver of socio-economic
development in developing countries, can the consensus on the legitimacy of green
economy as a pathway to sustainable development be achieved.
The Rio+20 Conference should be a launch pad for firm actions and initiatives set
against concrete goals and targets. Rio+20 should adopt clear targets and indicators set
against a clearly defined timeline and supported by financial and implementation and
accountability mechanisms, including improved planning and reporting mechanisms.
4.2. A Framework for Action: defining global goals for Sustainable Development
To achieve its objectives in an ambitious, time-bound and accountable manner,
Rio+20 should call upon governments to establish a framework of concrete goals and
targets which will lay strong foundations for the post-2015 development agenda. This
should be in accordance with the principle of common but differentiated
responsibilities, and respective capabilities of countries. Such a framework should
demonstrate a high degree of ambition and should be pragmatic and achievable. Some
of these goals could be build on the already existing commitments (e.g. Agenda 21 and
Johannesburg Plan of Action), while others could be linked to the advanced thinking and
future aspirations.
Rio+20 should ask for a global commitment to achieving Sustainable Energy for
All by the year 2030. Reaching this goal, while also reducing global energy intensity and
scaling up the deployment of renewable energy will require action by all countries and
all sectors to shape the policy and investment decisions needed for a brighter energy
future.
It is essential that the goals for sustainable development that are expected to be
agreed upon in Rio include the concrete targets underpinned by implementation
frameworks, financing and reporting and monitoring mechanisms. UNIDO believes that
the following three mutually reinforcing energy goals should be part of this new
framework:
1. Ensuring universal access to modern energy services – access to electricity
and to modern fuels and technologies for cooking, heating, and
productive uses.
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2. Doubling the rate of improvement in energy efficiency – increasing the
current pace of improvement to 2.5 percent per year, achieving a 40
percent reduction in global energy intensity by 2030.
3. Doubling the share of renewable energy in the global energy mix –
increasing the current renewable energy share of global energy
consumption to 30 percent.
In addition, targets should be included that allow for developing countries to re-
consider their industrial development trajectories and to integrate their developmental
and environmental concerns. The following goals are suggested to be set forth in the
framework of the new sustainable development goals:
• Developed countries must achieve an absolute decoupling of natural
resource use and the environmental impacts of economic growth and
industrial development – i.e. they must drastically increase the resource
productivity of their economies.
• Developing countries must be supported by developed countries to achieve
a relative decoupling of natural resource consumption from economic
growth and industrialization. Developed countries should support
developing countries in achieving a reduction from the current levels of
resource intensity by providing financial and technology transfer support
for green industry programmes and projects.
4.3. Minding the Gap: Greater focus on implementation
Accountability, monitoring and reporting
The two decades of sustainable development efforts and the past Sustainable
Development Summits (Rio 1992 and Johannesburg 2002) resulted in a number of time-
bound global targets and multiple commitments to sustainable development. However,
their implementation has not been delivered. What is lacking is the accountability
mechanisms and sufficiently developed and defined metrics that are needed to report
progress (or lack thereof) on the implementation of time-bound targets, goals and
objectives.
For example, a set of improved metrics is required to measure progress on
sustainable development targets and goals, particularly in the energy sphere. UN-Energy
agencies, such as UNIDO, UNDP and UNEP in cooperation with a number of eminent
institutions are leading the work on developing metrics to monitor progress regarding
energy access. UNDP is carrying out sectoral studies on energy poverty, with the
objective of launching the formulation of investment programmes to improve energy
access. Various regional and national institutions, such as the Energy Center KNUST and
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ECOWAS Regional Center for Renewable Energy and Energy Efficiency are working in
cooperation with UNIDO, UNEP and UNDP on monitoring indicators for energy access. In
addition, UNIDO is proposing to work in five countries in the ECOWAS region
(tentatively: Burkina Faso, Ghana, Liberia, Senegal, Sierra Leone) on developing the data
and information systems required for measuring and reporting progress on energy
access.
Finally, another set of indicators should also be developed and internationally
agreed upon to track the improvement in the greening of existing industries and the
creation of new, green industry. These indicators may include energy intensity measures
(already mentioned above), CO2 emission reductions, resource intensity indicators, and
other appropriate metrics. This task is made difficult by the diverse nature of different
industrial sectors, and the technologies available in different contexts, which calls for
further international effort to identify appropriate standardized metrics.
4.4. Strengthening inter-agency cooperation mechanisms as part of the
institutional framework for sustainable development
Rio+20 also presents an important opportunity for the UN system to
demonstrate its continuing relevance and effectiveness. In this regard, the UN system-
wide mechanisms for policy coherence and coordination will benefit from strengthening
and further reform, focusing in particular on issue-based cooperation rather than inter-
agency coordination (UN System Strategy for Rio+20, July 2011). The existing sectoral
UN coordination mechanisms, such as UN-Energy, UN-Water and UN-Oceans, will have
to be strengthened and empowered to lead and focus the UN System’s efforts and
issue-based cooperation on priority issues that emerge in their respective areas,
ensuring always that all three aspects of sustainable development are considered.
UN Energy
UN-Energy can be a powerful platform for an ambitious and forward-looking
energy agenda within the United Nations. UN-Energy was set up in 2004 as an
interagency mechanism on energy issues. A 2010 review found that the original
justification and rationale for its establishment still exist, and that the case for clear,
coherent and coordinated engagement by the United Nations family on energy is even
more compelling now than ever before. Utilizing the different perspectives of the United
Nations bodies in a coherent way is likely to produce the richest and most
comprehensive set of policies, engagements and actions to match the complexity of the
issues faced.
29
Over the past several years UN-Energy has prepared the ground for a major
global initiative to expand energy access for the poor and make significant
improvements in energy efficiency (i.e. Sustainable Energy for All by 2030). UN-Energy
must play its indispensable role in turning this vision into reality in the follow-up
to Rio+20.
A particularly sensitive issue is the development of universally agreed indicators
to monitor and report progress towards universal energy access, as well as
improvements in energy efficiency, particularly in industry, and increase in the use of
renewable energy. The establishment of such monitoring and reporting systems will be
crucial to inform and drive the “energy revolution” required for a transition to a
sustainable and inclusive green economy.
UN-Water
On the other hand, UN-Water, the United Nations interagency coordinating
mechanism on freshwater and sanitation issues, provides a solid precedent for
harmonized action by the UN system on water resources in the context of a Green
Economy and Sustainable Development. The group’s focus on information and data
gathering and sharing, and particularly on monitoring and reporting systems, can prove
a very powerful element to help tracking water use and sanitation in the transition to a
Green Economy.
One of the main issues to be discussed in Rio is the nexus between energy, water
and food security, which has several intertwined implications for the degree of welfare
achievable on the planet. The Sustainable Development agenda must deal with these
interconnections in the short- and long term.
UNIDO believes that in the wake of the Rio+20 Conference and particularly in the
post-Rio+20 implementation processes, UN-Energy and UN-Water should be
strengthened. They should be given greater institutional weight and a greater role in
strengthening the internal governance of United Nations energy activities so as to
enhance system-wide alignment and harness the system’s capacity as a whole.
Strengthening UN-Energy could constitute another area for common approaches to
institutional strengthening issues in the run-up and follow-up to Rio.
4.5. Strengthening the engagement of the private sector: public-private
partnerships (PPPs)
It is largely accepted that the private sector is the main engine of economic
growth. Influencing business developments in the right direction is therefore essential in
moving towards sustainable low-carbon economies. The UN system has a major
catalytic role to play in making such a transition happen, as it has the means to create
30
the enabling environments the private sector needs to engage effectively in innovative
green business opportunities.
The global partnership agenda has grown past the conventional fundraising
model, with Business seizing a larger significance in shaping local and international
development policies. Many of the fundamental drivers of sustained profitability and
success of Business in global markets – such as good governance, sustainable economic
development, energy and resources efficiency, green industry – overlap with UN
priorities to reduce poverty, increase security and advance sustainability agenda. These
deepening bonds between public and private priority agendas generate more
opportunities for creating partnerships
Rio+20 should strengthen the engagement of the private sector to generate
more transformational partnerships to drive systemic change around its main themes,
such as green economy, energy access, resource efficiency, and other such areas that
play a crucial role for achieving sustainable development. A transformational
partnership is essentially a multi-stakeholder engagement or a network of actors
gathered around a complex universal issue. A holistic, cross-sectoral approach to these
issues pulls core competencies of participants, and delivers scaled impact across sectors
and geographies, tackling public and private goals alike through adjustments in policy,
rectification of market structures, and/or shifting of behavioral norms.
While partnerships between the private sector and the UN are not new, the
ways they work together have evolved significantly over the last decade, and continue
to develop. UN-private sector partnerships have grown beyond the initial focus of
“partnership for partnership’s sake” to become more alert to areas where there is
considerable value in collaboration. As a result, core business and value chain
partnerships are gaining a higher momentum, while social investment and philanthropic
partnerships are gradually tuned to search beyond mere cash mobilization, and
integrate core business expertise, products and services into the collaboration.
Partnering with the private sector in public-private partnership mechanisms,
which combine the complementary assets of their parties, the UN system can make use
of synergies to provide momentum to encourage innovation and more effective
problem-solving, thus maximizing the development impact of its activities.
Establishing the right partnerships at the right time can mean the difference
between success and failure. Such partnerships should focus on direct engagement with
partners in developing countries to improve policy development and energy planning,
creating effective enabling environments and investment frameworks, building capacity,
enhancing energy access, overcoming financing barriers, and providing specialized
assistance and experience-sharing.
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4.6. Operational initiatives and networks: the role of Resource Efficiency and
Cleaner Production Network (RECP-Net) and Technology Centers
There is growing consensus on the fact that building a strong network of
technology centers is critical to enable developing countries to leapfrog to low-carbon
development paths. Such technology centers can be described as a “one-stop shop” to
foster the rapid expansion of green technologies in developing countries, to meet both
environmental and development needs.
The UN system has been playing a critical role in several areas of climate
technology development and innovation. Its most important functions are summarized
below:
- Building appropriate human and institutional capacity
- Supporting enabling investment environments
- Assessing appropriate technologies for local conditions
- Coordinating R&D efforts across public and private organizations
- Supporting the creation and incubation of companies to develop products for
local markets
- Providing early stage funding for companies
- Developing technical standards and certification
- Providing policy and market analysis to help governments and firms choose
appropriate strategies
Several international technology centers are currently operating, including
business incubators, seed funds, and multilateral organizations. However, these tend to
be in OECD or emerging economies. For example, two thirds of developing countries
have no identified organization focusing on climate technology development,
deployment and demonstration.
Much remains to be done – the role of the UN-System in fostering the diffusion
of green technology centers in poor countries is therefore critical. Several UN
programmes have proved successful in this area. Building on successful experiences to
date, the UN System will strengthen and build regional and national technology centers
in developing countries. While successful centers have often been developed
individually on an ad hoc basis, greater value could be provided by promoting a network
of connected centers.
The National Cleaner Production Centers and the RECP-Net
UNIDO's experience shows that a key success factor is the establishment of
national capacity to ensure the provision of context-specific assistance to governments
and enterprises. National capacity ensures sustained results and the development of
solutions and approaches that cater to country and industry specific needs. To ensure
sustained national capacity, UNIDO and UNEP have since 1994 established a
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continuously expanding network of National Cleaner Production Centers. These centers
deliver information, assessment and advisory services to businesses, governments and
other stakeholders for the adaptation and adoption of resource efficient and cleaner
production methods, practices and technologies. This includes supporting governments
in guiding their industrial development into sustainable pathways. The first eight centers
were established during 1994-1995 and since then the programme has expanded to
currently some 50 developing and transition countries.2
The National Cleaner Production Centers, Energy Technology Centers and other
initiatives have proven that taking care of resources, energy and the environment is
generally good for business, the environment and development at large. The UNIDO -
UNEP approach has proven to be highly effective because it is based on long-term
sustained support and the facilitation of access to knowledge and information and
capacity building and the transfer of skills. UNIDO experience shows that hands-on
practical on-site training, assessments, user-friendly tools and guidance, and national
support systems are the most effective way of creating an understanding for and
enabling enterprises to actively work towards increasingly sustainable production3.
Collectively, the centers have created 1,000s of enterprise level examples
demonstrating that resource efficient and cleaner production is good for business, the
community and society at large. In many cases businesses involved in Green Industry
approaches, have taken on a leading role to spread awareness and provide guidance
and assistance to other businesses in their sectors or in their value chains.
The National Cleaner Production Centers and Energy Technology Centers have,
furthermore, become practical examples of public-private partnerships, with boards
with business sector, government and civil society, and financing from national
government contributions, fees for business-advisory services and technical assistance
and innovation projects4. The global network of centers is increasingly involved in South-
South cooperation, and the centers are also actively involved in regional round tables of
sustainable consumption and production.5
Building on the joint UNIDO-UNEP Resource Efficient and Cleaner Production
(RECP) Programme, the Global RECP Network (RECP-Net) was created in 2009, during
2 UNIDO (2010). Joint UNIDO-UNEP Programme on Resource Efficient and Cleaner Production in Developing and
Transition Countries.
[http://www.unido.org/fileadmin/user_media/Services/Environmental_Management/Contacts/Contacts/RECP%20Pr
ogramme%20Flyer%20April%202010%20%282%29.pdf] 3 Examples of such tools include the UNIDO Cleaner Production Toolkit, UNIDO and UNEP (2010). Enterprise-level
Indicators for Resource Productivity and Pollution Intensity. A Primer for Small and Medium-Sized Enterprises, and
UNIDO and UNEP (2010), Good Organization, Management and Governance Practices: A Primer for Providers of
Services in Resource Efficient and Cleaner Production. These tools are available at www.unido.org/cp 4 UNIDO and UNEP (2010), Good Organization, Management and Governance Practices: A Primer for Providers of
Services in Resource Efficient and Cleaner Production [http://www.unido.org/index.php?id=o4545002] 5 UNIDO (2010). Taking Stock and Moving Forward. The UNIDO - UNEP National Cleaner Production Centres.
[http://www.unido.org/fileadmin/user_media/Services/Environmental_Management/Contacts/Contacts/Taking%20
stock%20and%20moving%20forward-November2010.pdf]
33
the first global RECP meeting hosted by the Government of Switzerland in Luzern in
October 2009. The network has been endorsed by 41 organizations complying with
membership criteria, and is effective since 3rd November 2010. The objective of the
RECP Net is to enable the effective and efficient implementation of RECP, facilitating
both South-South and North-South collaboration, and the transfer of RECP relevant
knowledge, experiences and technologies in developing and transition countries.
Specifically, the functions of the RECP-Net include: innovation and knowledge
management; capacity building; advocacy; and, quality assurance and branding.
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