8/12/2019 2010 Nevsky
1/8
UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
GreenIndustry:
Resourceandenergyproductivityforlowcarbonindustrydevelopment
Statementby
KandehK.Yumkella
DirectorGeneral
attheThirdNevskyInternationalEcologicalCongress
ECOLOGIZATIONOF
NATURE
MANAGEMENT
ABASISFORMODERNIZATIONOFECONOMYINBALANCEWITHNATURE
TavricheskiyPalace,St.Petersburg,RussianFederation
14May2010
8/12/2019 2010 Nevsky
2/8
MrSpeaker,
Excellencies,
DistinguishedDelegates,
Ladies
and
Gentlemen,
IntroductionIt is a great pleasure and privilege to have been invited to address you today at this important
congress in the beautiful and historical city of St. Petersburg. I would like to thank the CIS
InterparliamentaryAssembly and the Federation Council of the FederalAssembly of the Russian
Federationforthisinvitationandtocongratulatethemfortheinitiativetheytooktwoyearsagoto
launchtheNevskyCongress.
Iwarmlycommendyouforhavingassumedthemissiontopromotethecreationofaninternational
system of ecological security by strengthening transborder cooperation and harmonization of
environmentallegislation
of
the
CIS
member
states
and
other
countries
of
the
world
community.
In
severalspeechesIhavegiveninrecentmonths,Ihavedrawnattentiontotheimportanceofglobal
megatrendsdevelopmentsintheworldeconomythatdonotrespectfrontiersandaffectallofus,
forgoodor ill. Thesemegatrends includethe food, fueland financialcrises,ofwhichthe lasthas
justrecentlyassumedanentirelynewdimensionwithasyetunpredictableconsequences. Theyalso
include the distinct but related issues of unprecedented demographic growth, especially in
developing countries,unequalglobalizationand thegrowthof the illiciteconomy throughout the
world.
Thesedevelopmentsaredwarfedbyavarietyofenvironmentalchallengesfacedbytheplanet,and
inparticular thepotential threatsof climatechange,whichare the focusof thiscongress. I fully
concurwith
the
central
thesis
of
the
congress
that
there
is
an
urgent
need
to
define
astrategy
for
ensuring thateconomic growth is sustained, inorder to continue toprovide the stilldesperately
impetusforwealthcreationandpovertyreduction,butthat it isalsoecologicallysustainable. AsI
have alsomentioned in severalofmy recent speeches, thiswillnecessitatejoint actionbymany
actors, in both the public and private sectors, and partnerships across national and regional
boundaries.
I therefore welcome the debate that this congress is seeking to generate on issues related to
expanding the use of renewable and alternative energy sources, promoting increased energy
efficiency,developinglowcarbonandlowresourceproductsandprocesses,andexploringeffective
approaches for abalanced growthprocess inwhichboth economic and environmental goals are
met.
In
short,
that
there
is
a
modernization
of
national
economies
in
balance
with
nature,
and
that
thisprocess isachieved inacoherentandcoordinatedwayacrosscountriesandregions,because
natureknowsnoboundaries.
It iswith greatpleasure that I can inform you thatmyOrganization,UNIDO, theUnitedNations
IndustrialOrganization,ismakingaconsciousefforttocontributetothisprocess. Whileweclearly
regardthedevelopmentoftheproductivesectors,and industry inparticular,asthemosteffective
means of poverty reduction, we also understand that this has to take place in the context of
environmentalsustainability. Promotingcleanproduction,aswellasaccesstocleanenergyandthe
efficientuseofenergy, isoneofour threeorganizationalpriorities,togetherwithsupport forthe
developmentofproductiveactivitiestoreducepoverty,andassistanceinbuildingthecapacitiesof
developingcountriestoparticipateeffectivelyininternationaltrade.
8/12/2019 2010 Nevsky
3/8
By2030,worldenergydemandisprojectedtoincreaseby44%.Thiswillrequireabout$17trillionin
newinvestments.
Thereisampleevidencethatagreenenergyandindustrialrevolutionhasalreadystarted.
(1)HSBCandDeutscheBankestimatethatgreenenergyinvestmentswilltop$500billionayear
larger than theglobalaerospaceanddefence industriescombined!and that thecleanenergy
marketwillbeworth$2 trillion in ten years.According toMichaelNorthropof theRockefeller
BrothersFund,thisisbiggesteconomicopportunityeverquantified.
(2) From 20022007, we saw a sevenfold increase in investments into green energy solutions.
Investmentshavecontinued,eveniftheydippedin2009duetothefinancialcrisis.
(3)China
is
the
largest
market
for
wind
and
solar
energy.
China
intends
to
generate
15%
of
its
energyfromrenewables.Inthepastfourtofiveyearstheyhaveemergedasthesinglelargestmaker
ofwindturbinesandsolarpanels.
(4)TheEUmarketandits2020targetshavealsocreatedanewimpetus.Henceweseeprojectslike
DesertecandEuromedSolartogenerateelectricitythroughconcentratedsolartechnologyfromthe
SaharaforEuropeaneconomies.
(5)
President
Obama
says
the
US
should
lead
the
green
energy
revolution,
and
through
stimulus
measures,hehasallocatedabout$80billion ingreen investments includingabout$40billion for
R&D.
Between1998and2003RussiasR&Ddoubledand itsR&D/GDPratiorose from1.0%to1.3%,by
2005itstoodat1.1%
Incomparison,figures froma2008studysuggestthatIsraeldevoted4.7%of itsGDPtoR&D,and
wasleadingallcountries,followedbySwedenwith3.9%,Finlandwith3.5%,Japanwith3.2%andthe
Republicof Koreawith3%.
IsRussiaandtheCISregionpartofthisrevolution?Areyoureadytoleadandshapethisrevolution?
Russiahasalwayshadagreattraditionofscholarship,andgreatscientificminds.Itcanandshould
investmore intoresearchanddevelopment(R&D) inordertostrengthenthe innovationpipeline,
allowforrapidtakeupofexistingtechnologies,andtosupportnewbreakthroughtechnologies.
DistinguishedDelegates,
Ladiesand
Gentlemen,
8/12/2019 2010 Nevsky
4/8
GlobalContextAswemeetheretoday,theCommissionforSustainableDevelopmentiswrappingupits18thsession,
during which it considered global progress towards the realization of the goals for Sustainable
ConsumptionandProductionthatwereoriginallyagreeduponattheUnitedNationsConferenceon
EnvironmentandDevelopmentinRiodeJaneiroin1992,andweresubsequentlyreaffirmedduring
the 2002 World Summit on Sustainable Development (WSSD). Sustainable Consumption and
Productionisabouthowhumanityproducesanadequatesupplyofgoodsandservicesforeveryone
while putting less pressure on the environment and ecosystems. In short it is about delinking
economicdevelopmentandsocialwellbeingfromenvironmentaldegradation.
Slide1: Worldecologicalfootprintrelativetobiocapacity
Letmefocusthediscussionbylookingatsomebasicstatistics.Theworldstotalecologicalfootprint
in1960was50%oftheglobalsupplyofbioproductiveland.Inthefollowing27years,thefootprint
doubled, so thatby 1987 thepressure exertedby global consumption equalled the regenerative
capacityofplanetearth.Buttheprocessdidnotstopthere. By2009,theovershootwas39%. To
putit
differently,
humanity
today
uses
the
equivalent
of
1.4
planets
to
provide
the
resources
we
use
andabsorbourwaste. Ifcurrentpopulationandconsumptiontrendscontinue, it isestimatedthat
bythemiddleofthenextdecadewewillneedtheequivalentoftwoEarthstosupportus. Ofcourse,
itwillcomeasnosurprisetoyouthatweonlyhaveoneEarth.
Slide2: EcologicalfootprintoftheRussianFederationrelativetobiocapacity
Internationalcomparisonsoftheecologicalfootprintareveryrevealing. Theecologicalfootprintof
the Russian Federation currently stands at around 4.5 ha per capita, well below the available
biocapacityofapproximately6.5hapercapitagivenbythecountrysvast landmassandrelatively
lowpopulationdensity. Bycontrast,theaveragefootprintinindustrializedcountriesliesabove6ha
percapita, inmiddleincomecountriesjustunder2hapercapitaand inthe lowincomecountries
below1ha
per
capita.
Theglobalfairsharewouldbeapproximately2hapercapita.Ifallglobalcitizensweretohavethe
same lifestyleas theaveragecitizenof the industrializedworld,wewouldneed theequivalentof
about five Earths to support us. These global disparities are immense, as illustrated with the
alternativeworldmapwhichdrawsthesizeofterritoriesbytheirtotalecologicalfootprintinsteadof
the size of their surface area. Viewed by ecological footprint, industrialised and emerging
economiesarefarlargerthentheirrelativesurfacearea.
Slide3: Ecologicalfootprintofnations(2006)
A comparison of this ecological footprint distributionmapwith the population distributionmap
revealsthetruescaleoftheglobalresourceconsumptionchallenges. Globalresourceconsumption
already exceeds ecological carrying capacity. The LDCs and low income countries have
disproportionately lowerresourceconsumptionandwillrequireaccesstomoreresourcestomeet
theirbasicneedsandimprovetheirstandardofliving. Thechallengethenistofacilitateaswiftshift
in unsustainable consumption and production patterns in order to get back within the carrying
capacitiesofecosystemswhileensuringupwardconvergenceinlivingstandardsacrosstheplanet.
Slide4: Globalpopulation(2006)
DistinguishedDelegates,
Ladiesand
Gentlemen,
8/12/2019 2010 Nevsky
5/8
GreenIndustryAsthespecializedagencyforindustrialdevelopment,UNIDOisparticularlyconcernedhowindustrial
development contributes, or as the case might be, impedes progress towards Sustainable
Consumption and Production. Toemphasize thepositive contribution industry canmake, Imade
GreenIndustryanorganizationwidestrategicpriorityforUNIDO.
GreenIndustryisatwoprongedagenda:
Firstly, it isaboutassistingexistingandemerging industries to reduce theirenergy,waterandmaterials consumptionand reduce theiremissions towater,air and land.This is the
agendaforthegreeningof industries,whichwillhavetoensurethatall industriesproduce
more while using less resources and generating fewer emissions, year after year, as a
continuousimprovementprocessovertime.
Secondly, green industry includes the establishment of a vibrant and innovativeenvironmentalgoodsandservicessector.Theseincludetheprovidersofwastemanagement
and
recycling
techniques
and
services,
producers
of
environmental
technologies,
providers
of energy efficiency and renewable energy techniques and suppliers of environmental
monitoringservices.
InSeptember2009,UNIDOconvenedaGreenIndustryConferenceforAsia,hostedinManilabythe
GovernmentofthePhilippinesandattendedbysome1,200participants. Governmentsof21Asian
developing countries agreed on the Manila Declaration on Green Industry. The signatories
acknowledged thatmarkedlydifferent industrialdevelopmentpathwaysareurgentlyneeded,and
calleduponUNIDOandtheotherintergovernmentalorganizationstosupportdevelopingcountries
in the challenging but necessary endeavour to achieve lowresource, low carbon patterns of
industrialdevelopment.
UNIDOis
actively
pursuing
the
Green
Industry
agenda.
Together
with
the
United
Nations
Environment Programme,UNEP,we establish and support a global network ofNational Cleaner
ProductionCentres,orNCPCs. TheseCentresdeliverinformation,assessmentandadvisoryservices
to businesses, governments and other stakeholders for the adaptation and adoption of cleaner
production methods, practices and technologies. The first eight NCPCs were established during
19941995 and since then the programme has expanded to currently some 50 developing and
transitioncountries.
Following and extensive evaluation of the NCPC programme in 2007/2008, UNIDO and UNEP
formulatedastrategyforscalingupandmainstreamingtheactivitiesandimpactsoftheNCPCsand
similar initiatives. As a result, the programmes focus has expanded to Resource Efficient and
CleanerProduction
to
underpin
the
message
that
the
same
preventive
environmental
and
productivitymethodscontributetothreesustainabilitydimensions:
(i) theproductiveuseofnaturalresources,includingenergy,materialsandwater;(ii) theminimizationofgenerationofwastesandpollutants;and(iii)safeandresponsibleproduction.
IwaspleasedtowitnessfirsthandthevibrancyanddedicationoftheNCPCswhenIattendedtheir
2009globalnetworkingmeetinginLuzern,Switzerland.
OneoftheCentresundertheProgramme isbased inthishistoriccityofStPetersburg.TheNorth
Western International Cleaner Production Centre has been an active partner for UNIDO with aparticular focusof its activitiesonwatermanagement.Moreover theCentreplayedapioneering
8/12/2019 2010 Nevsky
6/8
role in the promotion and application of chemical leasing to several local companies including
Vodokanal.Chemicalleasingintroducesaservicebasedbusinessmodelforchemicalsmanagement.
It aligns the interests of the chemical supplier and the chemicals user to use the least possible
amountofthemostbenignchemicalsforanyapplication,asthechemicalssupplierisbeingpaidon
thebasisoffinishedproductsinsteadofchemicalssupplied.
Inaddition,UNIDOhasalsobeenworkingoncreatingenablingpolicyframeworksforgreenindustry,
whichwillbe released shortly.Environmental legislation isnowgenerally inplace,but theefforts
devotedtoimplementationandenforcement,andhencetheaveragelevelsofindustrycompliance,
vary greatly. The unfortunate result is that companies operating in lax enforcement regimes
experience that noncompliance remains cheaper then compliance, a situation that has been
systematicallyruledoutinWesternEurope,NorthAmericaandJapansincethemid1980s.
AlthoughUNIDO recognizes that firmsmay find it difficult and costly to complywith applicable
environmental legislation, compliance should be treated as a nonnegotiable condition for doing
business as a matter of principle, regardless of the business location. Buyers, investors and
regulatorsandthe internationalcommunityshould therefore focusonmaking iteasier toachieve
complianceby
providing
technical
and
managerial
assistance,
risk
sharing,
and
investment
support.
DistinguishedDelegates,
LadiesandGentlemen,
EnergyandclimateThe development of a sustainable, longterm solution tomeeting theworlds energy needs is a
defining issueofour time.Energy isdirectly linkedwith thekeyglobal challenges that theworld
faces povertyreduction,climatechange,andglobal,environmentalandfoodsecurity.
Currentenergy systemsare failing tomeet theneedsof theworldspoor.Worldwide,2.6billion
peoplerelyontraditionalbiomassforcookingand1.6billionpeopleaboutaquarterofthehuman
race donothave access to electricity. Theprojected cumulative investment requiredbetween
2005 and 2030 tomeet energy needs is almostUS$ 20.1 trillion, but even if this investment is
securedoverthenextthirtyyears,1.4billionpeoplewillstilllackaccesstoelectricityin2030and2.7
billionwillstillrelyontraditionalbiomassforcookingandheating.
Globalenergyrelated carbondioxide (CO2)emissionswill increaseby some50per centbetween
2004and2030unlessmajorpolicyreformsandtechnologiesare introducedtotransformtheway
energy isproducedandconsumed.Coalhasovertakenoilasthe leadingcontributortoglobalCO2
emissions.Developing countrieswill account for threequartersof the increase in carbondioxide
emissionsbetween
2004
and
2030
unless
major
transformative
policies
and
technologies
are
introducedinthenextfewyears.
Percapitaemissions indeveloping countrieswill remain smallcomparedwith those indeveloped
countries.Yet,theshareofdevelopingcountryemissionsisexpectedtorisefrom39percentin2004
tooverhalfof the totalworldemissions in2030unlessmitigatedbypolicies thatpromotemore
efficientproductionanduseofenergy,switchingtocleanerfuels,moreefficienttransportation,and
cleaner electricity supply.Many fastgrowing developing countrieswillmake theirmajor energy
relatedinvestmentsinthenextdecade. Thereisashortwindowofopportunitytoensurethatthe
energyinfrastructureandindustrialfacilitiesareasenergyefficientaspossible.
8/12/2019 2010 Nevsky
7/8
Atthegloballevel,theenergysystemsupply,transformation,deliveryanduse isthedominant
contributor to climate change, representing around 60 per cent of total current greenhouse gas
(GHG) emissions.Currentpatternsof energyproduction and consumption areunsustainable and
threatentheenvironmentonboth localandglobalscales.Emissionsfromthecombustionoffossil
fuels are major contributors to the unpredictable effects of climate change, and to urban air
pollutionandacidificationoflandandwater.
Reducingthecarbonintensityofenergythatis,theamountofcarbonemittedperunitofenergy
consumedisakeyobjectiveinreachinglongtermclimategoals.Aslongastheprimaryenergymix
isbiased towards fossil fuels, thiswouldbedifficult toachievewithcurrentlyavailable fossil fuel
basedenergytechnologies.Giventhattheworldeconomyisexpectedtodoubleinsizeoverthenext
twenty years, theworlds consumptionof energywill also increase significantly if energy supply,
conversionandusecontinuetobe inefficient.Energysystemdesign,providingstronger incentives
forreducedGHGemissions insupplyand increasedenduseefficiency,willthereforebecriticalfor
reducingtheriskofirreversible,catastrophicclimatechange.
It iswithinthiscontextthattheUNSecretaryGeneralconvenedanAdvisoryGrouponEnergyand
ClimateChange(AGECC)in2009toaddressthedualchallengesofmeetingtheworldsenergyneeds
fordevelopmentwhilecontributingtoareductioninGHGs. TheGroup,whichIhavetheprivilegeto
chair,carriedoutthistaskinarapidlychangingenvironmentinwhichenergywasoftenakeyfactor:
thesensitivityoftheglobaleconomytoenergypricespikes;increasedcompetitionforscarcenatural
resources;andtheneedtoaccelerateprogresstowardsachievementoftheMDGs.
TheGroupsubmitted itsreporttotheSecretaryGeneral inApril2010. Thereportsetsoutforthe
firsttimetwoambitious,butachievable,globalenergygoals.
Goal1:Ensureuniversalaccesstomodernenergyservicesby2030
Goal 2:Reduce global energy intensity thequantityof energyperunitof economic activityor
output(GDP)by40percentby2030
Oneofthechallengesfacingtheglobaldevelopmentcommunityisthatthereisnoclearconsensus
onwhataccessmeansandonaccess indicators. TheAGECC reportdefinesaccessasaccess to
clean, lowGHG emitting and affordable energy services for cooking and heating, lighting and
communicationandproductiveuses.
Wehave
adopted
this
broader
definition
because
access
to
sufficient
energy
for
basic
services
and
productive uses represents the level of energy access needed to help sustainable improve
livelihoodsinthepoorestcountriesanddrivelocaleconomicdevelopment.
Pleasenote,however,thatenergyaccessisnotanallornothingissue,andshouldbeconsideredin
stages.TheAGECCreportconsidersthree incremental levelsassociatedwithmeetingbasicneeds,
supportingproductiveuses,andmeetingtheneedsofmodernsociety.ClearlytheGHGimpactsare
differentateachlevel.
This iswhy it isvery importantthatexpandingaccess isdone inthecleanestandmostsustainable
waypossible.
Countries
should
be
helped
to
establish
alow
carbon
route
to
development
by
driving
down the costsof lowemissions technologies inorder to facilitate theiraccelerateddeployment,
8/12/2019 2010 Nevsky
8/8
bothonthesupplyside(including loweremissionsfossilfuelbasedtechnologies)andthedemand
side,whereenergyefficientendusedevicesreducetheamountofpowerconsumed.
Furthermore,thereisastrongcorrelationbetweenenergyconsumptionandeconomicgrowth.The
termenergy intensityprovidesawayofunderstanding theevolutionof this relationship. Since
1990,global
energy
intensity
has
decreased
at
the
rate
of
about
1.3
per
cent
per
year.
The
AGECC
reportcallsforadoublingofthisrate.Achievingthisgoalwillrequiretheinternationalcommunityto
harmonize technical standards for key energyconsuming products and equipment. It will also
requireatransferofknowhowandgoodpractices,andthedevelopmentofcapacitiestoimplement
them. Investment in energy efficiency also needs to be encouraged. The AGECC report calls for
energyefficiencytobeprioritizedintheshortandmediumtermasamitigationmeasure.
DistinguishedDelegates,
LadiesandGentlemen,
Closingremarks
Theexpandingevidencebaseon the interrelatednessandscalesof resourceconsumption,water
scarcity,peakoil,climatechange,andotherchemicalandenvironmentalrisksunderlinestheurgent
need for an effective response. The risks and costs of nonaction are higher than the costs of
prudentearlyaction,aswasprofoundlydemonstratedbytheSternReviewonClimateChange.
Amidst the gloomy news on the environment and climate that surrounds us, UNIDO remains
optimisticthatopportunitiesareavailabletoactnow.TheNationalCleanerProductionCentresand
other initiatives have proven beyond doubt that taking care of resources, energy and the
environment isgenerallygoodforbusiness,theenvironmentanddevelopmentat large. Thetime
has come forus tomove frompilotanddemonstrationprojects to thewidespreadadoptionand
adaptationofbestpractices,andtothescalingupandmainstreamingofgreen industry initiatives.
Thiswillrequire(i)theprioritizationandtargetsettingforgreen industry innationaldevelopment
policies; (ii) the implementation and enforcement of appropriate industrial and environmental
policies; (iii) the dissemination of relevant knowledge, technology and information in locally
appropriate forms; and (iv) the effective utilization of already available human and institutional
resourcesandexperiences.
Iamencouragedtoseethattheseissuesarebeingpickedupwithsomuchcommitmentandresolve
at thisCongress,and Iwishyouall thebest foryourdeliberations. Iam confident that theywill
make a significant contribution to addressing the challenges of modernizing your national
economies,andindeedtheglobaleconomy,inbalancewithnature.
Thankyou.
Top Related