Achieving Environmentally Sustainable Economic Growth

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Achieving Environmentally Sustainable Economic
Growth

• MCED 2005
• United Nations, ESCAP
• Seoul, 24-29 March 2005

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Asia and the Pacific

• 4 billion people(60 world pop.)
• 2/3 world poverty, 40 world territory
• 34.5 growth (world 28.7,94-04)
• 75-95 annual GDP growth rate
• A/P 3.09, world1.17
• Increasing pressure upon the limited
  environmental carrying capacity from large
  population andeconomic growth

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• Environment already showing sings of stress
  water shortage, land degradation
• However, Asia and the Pacific still have to
  continue to grow to reduce 2/3 world poverty
• Challenge before usHow can we pursue economic
  growth without jeopardizing the environment?

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• We have to reduce the pressure we are putting on
  the environment in order not to compromise
  environmental sustainability of our growth.
• In order to reduce the pressure,we have to
  improve
• 1. ecological-efficiency of our growth
• 2. create win-win synergy between the
  environment and the economy

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• Improving eco-efficiency is beyond pollution
  control.
• We have to improve eco-efficiency of the way we
  produce and consume.
• Environmental Performance conventional pollution
  control eco-system management
• Environmental Sustainability ensuring a level of
  eco-efficiency in meeting the needs of present
  generation without compromising environmental
  carrying capacity for the future generation

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• According to Environmental Kuznets Curve (EKC),
  pollution control improves as income goes up.
• However, improvement in Environmental Performance
  (EP) of pollution control is not enough in
  reducing the pressure arising from growth upon
  the environment.
• We need to improvement Environmental
  Sustainability (ES) of the way we produce and
  consume.

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• As income goes up, EP improves, however, ES
  does not improve rather could even deteriorate
  unless we introduce strong policy intervention.
• EP involves mainly environment ministry,ES
  involves society as a whole and more difficult to
  pursue as it has to fundamentally change the
  production and consumption patterns.

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Growth and EP, ES

• As Growth continue EP improves, but ES not
  necessarily improve, ratherdeteriorate.
• EP Conventional environmental management
  focusing on production Side discharge and
  effluents
• ES new paradigm, not established yet,
  eco-efficiency is difficult to pursue, needs
  to consider consumption

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Scatterplot of ESI on GDP
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Income and air pollution
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Income and water Quality
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Income air pollution pressure
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Income and Water Stress
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ESI pollution control eco-efficiency

• Air/water pollution PPM of pollutants
• pollution control indicator
• Consumption of coal, pesticides, fertilizer
  Discharge of Sox, Nox etc.
• per populated or arable land
• could be eco-efficiency indicator
• While ESI generally improves, but
• Eco-efficiency deteriorates
• as income goes up.

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• Why changing Production Consumption Patterns?
  to improve eco-efficiency ? to reduce pressure
  arising from economic growth on environmental
  carrying capacity
• Production pattern changing production process
  relatively easy to tackle, already some progress
  in clean production, conventional environmental
  management focusing on production

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• Sustainable Consumption Patterns
• internalizing environmental costs into
  consumer price.
• Changing life style, difficult for
  consumers to accept, so far limited focus and
  progress.
• However, improving eco-efficiency of consumption
  is also critical in reducing environmental
  pressure arising from economic growth.
  

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• Fear that reducing consumption will slow down
  economic growth.
• However, changing consumption pattern is not just
  
• reducing quantity but changing
  quality of consumption
• From disposable batteries to rechargeable
  batteries.
• Creating new market foreco-efficient products
  not just cutting down consumer sales

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• Not just individual consumer choice need demand
  side management public policy
  Transportation public vs
  private railroad vs highway
• So far economic development plan focused on
  increasing supply but demand side managementalso
  need to be focused
• Licensing of purchasing private passenger car
  Singapore, Shanghai

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Consumption Role of Civil Society

• Demand side management public sector and
  government can play a leading role
• Changing consumer choice government
  difficult to impose choice
• Civil society should play a leading role in
  promoting voluntary acceptance bottom up
  rather than top down
• Linking traditional life style and cultural
  valuescould make it easier for consumers to
  accept

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• ES requires
• Concept change Not only pollution control but
  also
• Eco-efficiency Environment as an
  opportunity for growth, employment, and
  business
• System Change Internalization of environmental
  costs Synergy between environment and
  economy Demand side management

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Green Growth

• Pursuing economic growth necessary forpoverty
  reduction (MDG Goal)
• While maintaining environmentalsustainability
  (MDG goal)
• By improving eco-efficiency by changingproduction
  and consumption patternsas called for by JPoI
  (fundamental change ofthe way society produces
  and consumes)
• Thus Green Growth is not a new commitment
• But a necessity for Asia Pacific Regionto Grow
  for present future generations

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ESCAP FOOLOW-UP

• Green Growth Policy Dialogue
• - Eco-efficiency Tax/Budget reform
• 8-9 Nov. 2005, Seoul,
• Seoul Initiative Network on GG
• - Launching 10-11 Nov. 2005, Seoul
• - policy consultation forum,
• capacity building, training
• from 2006 to 2010

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• GG Policy Dialogue Sustainable Consumption and
  Production Patterns
• focusing on availability of sustainable
  consumption choices, in particular the role of
  public sector in providing sustainable choices,
• not individual consumer choices among existing
  choices
• linking SCP with traditional lifestyle and
• cultural values
• - early next year with Govt. of China

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• Eco-efficiency of Economic Growth
• Project 2006-7
• - to analyze trends of eco-efficiency
• of economic growth of the countries
• in the region
• - to identify policy tools to improve
• eco-efficiency of growth
• - to promote actual application of
• policy tools identified
• - to develop eco-efficiency indicators

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Why Tax Budget reform?

• Role of public sector is greater in developing
  countries
• Tax Budget is most powerful public policy tool
• to internalize environmental cost
• to realize optimum resource allocation
• to change consumption and production
• patterns and life styles
• necessary to improve eco-efficiency