Inclusive Green Economy Given Go Ahead by Heads of State at Rio+20
Rio de Janeiro, 22 June 2012 - The Rio+ 20 Summit ended today with a range of outcomes which, if embraced over the coming months and years, offer the opportunity to catalyze pathways towards a more sustainable 21st century.
Heads of State and more than 190 nations gave the green light to a Green Economy in the context of sustainable development and poverty eradication.
Nations agreed that such a transition could be 'an important tool' when supported by policies that encourage decent employment, social welfare and inclusion and the maintenance of the Earth's ecosystems from forests to freshwaters.
The decision supports nations wishing to forge ahead with a green economy transition while providing developing economies with the opportunity for access to international support in terms of finance and capacity building.
Meanwhile the Summit also gave the go-ahead towards a set of Sustainable Development Goals (SDGs) to bring all nations-rich and poor- into cooperative target setting across a range of challenges from water and land up to food waste around the globe.
The SDGs are expected to compliment the Millennium Development Goals after 2015: they reflect the reality that a transition to an inclusive green economy and the realization of a sustainable century needs to also include the footprints of developed nations as well as as developing ones as they aim to eradicate poverty and transit towards a sustainable path.
Other potentially positive outcomes include a ten year framework on sustainable consumption and production with a group of companies announcing at Rio+20 initiatives to already move forward including in the area of sustainable government procurement of goods and services.
A decision to work towards a new global indicator of wealth that goes beyond the narrowness of GDP; encouragement for governments to push forward on requiring companies to report their environmental, social and governance footprints.
After some four decades of discussion and calls for the environment programme of the UN to be strengthened, governments agreed on an upgrading of the UN Environment Programme (UNEP).
Meanwhile the World Congress on Justice, Governance, and Law for Environmental Sustainability, hosted by the Brazilian Supreme Court and UNEP in partnership with a number of international organizations, committed to use international and national laws to advance sustainability, human and environmental rights and the implementation of environmental treaties.
The Congress, involving some 200 delegates including chief justices, senior judges, attorney-generals, chief prosecutors, auditor-generals and senior auditors, called on governments to back an Institutional Framework for the Advancement of Justice, Governance and Law for Environmental Sustainability in the 21st Century backed by UNEP.
Achim Steiner, UN Under-Secretary General and UN Environment Programme (UNEP) Executive Director, said: "World leaders and governments have today agreed that a transition to a Green Economy-backed by strong social provisions-offers a key pathway towards a sustainable 21st century".
"Several other important agreements were also forged that can assist in enabling that transition ranging from assessing the potential of a new indicator of wealth and human progress beyond the narrowness of GDP to increasing the level of accountability and transparency of companies in respect to reporting their environmental, social and governance footprints," he added.
"The outcome of Rio+20 will disappoint and frustrate many given the science, the day to day reality of often simply surviving as individuals and as families, the analysis of where development is currently heading for seven billion people and the inordinate opportunity for a different trajectory. However if nations, companies, cities and communities can move forward on the positive elements of the Summit's outcome it may assist in one day realizing the Future We Want," said Mr Steiner.
"Meanwhile after almost four decades of discussion , governments have decided to upgrade UNEP including in key areas such as universal membership and improved financial resources-this is welcome as one important way for improving the authority, the influence and the impact of the world's minister responsible for the environment in terms of moving development onto a more sustainable track," said Mr Steiner.
Rio+20 addressed growing concern that Gross Domestic Product may have out lived its usefulness in a world where natural resource scarcity, pollution and social exclusion are also becoming drivers of whether a nation's wealth is truly going up or running down.
The Summit's outcome document requests the UN Statistical Commission to work with other UN bodies including UNEP and other organizations to identify new approaches for measuring progress.
The Commission's work will draw on a range of assessments and pilot projects ongoing across the globe.
- Inclusive Wealth, which is based on the World Bank's Adjusted Net Saving indicator, is developing a more inclusive indicator of national wealth, covering not only produced capital, human capital, and natural capital, but also critical ecosystems -and through the UN, a new Systems of Environmental and Economic Accounts has been proposed for use by member states.
UNEP and the UN University's International Human Development Programme at Rio+20 presented findings from an Inclusive Wealth Index (IWI) looking at several countries including Brazil.
Other pathways towards a new indicator include:-
- The EU effort to go "Beyond GDP" - launched in November 2007 its aims to come up with a broader set of macro-level indexes other than GDP and provide information on how economic growth affects its own foundation (stock of all assets)
- Several countries including Brazil, Colombia, Germany, India and the United Kingdom have or are now carrying out national assessments of the value of their 'natural assets' drawing on those done globally by The Economics of Ecosystems and Biodiversity hosted by UNEP
Consumption and Production
Another potentially significant step forward was the adoption of a 10 year framework on sustainable consumption and production covering several sectors ranging from tourism to government procurement.
During Rio+20 over 30 governments and institutions including Brazil, Denmark, Switzerland and UNEP announced a new global International Sustainable Public Procurement Initiative (SPPI) aimed at scaling-up the level of public spending flowing into goods and services that maximize environmental and social benefits.
Studies indicate that sustainable public procurement, which represents between 15 and 25 per cent of GDP, offers a tremendous opportunity towards green innovation and sustainability.
Examples from around the world show that sustainable public procurement has the potential to transform markets, boost the competitiveness of eco industries, save money, conserve natural resources and foster job creation.
- In India, for example, government procurement is worth about US $300 billion and is expected to grow by more than 10 per cent annually in the coming years
- Across the OECD group of countries, public procurement represents close to 20 per cent of GDP (over US $4,700 billion annually), while in developing countries the proportion can be slightly higher
- Japan's Green Purchasing Policy, has contributed to the growth of the country's eco-industries, estimated to be worth about &euro430 billion in 2010
- Europe could save up to 64 per cent of energy - or 38 TWh of electricity - by replacing street lights with smarter lighting solutions
- In Brazil, the Foundation for Education Development succeeded in saving 8,800 m3 of water, 1,750 tonnes of waste and 250 kg of organohalogen compounds, providing the equivalent of one month economic activity to 454 waste pickers, through its decision to replace regular notebooks with ones made of recycled paper in 2010
An estimated 25 per cent of the 20,000 companies tracked by Bloomberg are reporting their environmental, social and governance footprints-but 75 per cent are not.
Such in-depth data offers the opportunity for pension funds to invest in companies with a long term perspective of profits through sustainability reporting while assisting governments in measuring the contribution of multi-nationals towards national sustainability goals and progress beyond GDP.
On 20 June several countries including Brazil, Denmark, France and South Africa-several of whom already have stock exchanges requiring better reporting- announced they would move forward on the issue with support from UNEP and the Global Reporting Initiative.
Rio+20 also agreed to strengthen and 'upgrade' the UNEP in order to strengthen the environmental pillar of sustainable development.
The decisions include addressing the limited membership of UNEP which currently stands at 58 member states into a body with universal membership of its Governing Council while increasing UNEP's financial resources by an increased allocation from the UN's regular budget.
The Rio+20 outcome also calls on the next General Assembly of the UN to strengthen UNEP's ability to assist member states at the regional and national level and to build on its science-policy interface including through UNEP's flagship Global Environment Outlook process.
As part of this intensifying global relationship between scientists and governments, the International Council for Science led by Nobel Prize winner Yuan-Tseh Lee with UNEP and the UN Educational, Scientific and Cultural Organization also launched the 'Future Earth' initiative.
Ways to advance the participation of civil society including cities is also envisaged as part of the strengthening and upgrading process.
Governments, civil society and the private sector have been preparing for the UN Conference on Sustainable Development (Rio+20) for around two years.
Throughout the preparations and during Rio+20 the UN including UNEP have been providing assessments, studies and policy pathways aimed at supporting member states on the science and the options for transformational change.
UNEP's work on the Green Economy, in partnership with a wide range of UN and other bodies, has led to a range of supportive reports including:-
The flagship Green Economy Report: Pathways to Sustainable Development and Poverty Eradication
Measuring Progress Towards a Green Economy
The joint International Labour Organization/UNEP report Working towards sustainable development: Opportunities for decent work and social inclusion in a green economy
The UN's Environmental Management Group's Working towards a Balanced and Inclusive Green Economy
Why the Green Economy Matters to Least Developed Countries
Decoupling Natural Resource Use and Environmental Impacts from Economic Growth by the UNEP-hosted International Resource Panel
The Economics of Ecosystems and Biodiversity Synthesis Report
The Global Environment Outlook-5
During Rio+20 a further range of supportive reports and initiatives were launched on behalf of member states including:-
Avoiding Future Famines: Strengthening the Ecological Basis of Food Security through Sustainable Food Systems
The Principles for Responsible Insurance
A UN Water survey of over 130 national governments on efforts to improve the sustainable management of water resources http://www.unwater.org/downloads/UNW_status_report_Rio2012.pdf
A Global Initiative for Resource-Efficient Cities
Inclusive Wealth Report 2012
Global Environment Outlook 5 (GEO-5) for Local Government
The Business Case for the Green Economy: Sustainable Return on Investment
Building an Inclusive Green Economy for All
Notes to Editors
The UN Conference on Sustainable Development 2012 (Rio+20) concluded on 22 June 2012 http://www.uncsd2012.org/
The Green Economy www.unep.org.greeneconomy
UNEP's activities at UNCSD 2012 (RIO+20) are at http://www.unep.org/rio20/
More Information Please Contact Nick Nuttall, Acting Director of the UNEP Division of Communications and Public Information and UNEP Spokesperson, on Tel: +55 11 6593 8058, after 22 June +254 733 632755, E-mail: email@example.com