UN Environment Programme’s (UNEP),
9th special session of the Governing Council/Global Ministerial Environment Forum
7-9 February 2006, Dubai
Official submission from Business and Industry at the Ministerial
The International Chamber of Commerce (ICC) welcomes the opportunity to express its views and engagement in the Ninth special session of the Governing Council/Global Ministerial Environment Forum. We appreciate the opportunity to make a statement in this forum – although we value our engagement in and can support many of the consensus recommendations of this year’s GCSF, there are also areas in which our perspectives differ from those of other groups, or with regard to which we have specific technical or management experience to offer.
Achieving the sustainable development goals in the Millennium Declaration, the JPOI (Johannesburg Plan of Implementation), amongst others, requires collaboration across all sectors of society and due engagement of economic, social and environmental decision makers.
The business community regards UNEP as a crucial organization to support and catalyze such cooperative efforts within its specific environmental mandate and expertise, and to work with other UN institutions such as UNDP, WHO, and CSD, among others.
Business is a key player in providing sustainable livelihoods, investing in infrastructure, providing products and processes to answer people’s needs and aspirations, and promoting technological progress and capacity building. Companies of all sizes and sectors, operating internationally, regionally and locally are working with governments, employees, customers, communities and other stakeholders to find concrete solutions to these challenges in the broader context of poverty reduction and sustainable development.
Business has a long history of cooperation with UNEP in a wide range of environmental topics and initiatives, particularly through the UNEP Department of Technology, Industry and Economics (DTIE). UNEP DTIE is a vital and valuable component of UNEP, and industry regards cooperation with UNEP DTIE, UNEP Regional Offices and the headquarters in Nairobi as complementary.
We see two over-arching common themes that underpin successful implementation in the policy areas that are the focus of this meeting: technology and capacity building. Business regards technology innovation, dissemination and co-operation and capacity building as critical to the successful implementation of governmental actions and to eco-efficient business operation.
Business is and will continue to be the principle source of innovative technologies and management systems. We hope that this meeting will take decisions to establish and strengthen short- and long-term enabling frameworks in both developed and developing countries to encourage the development, commercialisation and dissemination of technologies that will be necessary to attaining energy, water, chemicals management and other sustainability objectives. Providing enabling frameworks for technology development, investment, capacity building and co-operation in these areas will encourage business to develop, commercialize and disseminate existing and innovative technologies, while growing local business communities and promulgating good environmental management policy and practice.
Business supports strengthening UNEP’s scientific base to help set priorities for cooperation to manage risks and address the most pressing environmental challenges. In this context, capacity building at the national and regional levels is critical. Efforts to leverage scientific resources and institutions should include those in which business is involved. We urge a stronger linking between the Bali Plan as it unfolds and UNEP’s reinforcement of its scientific resources.
Business supports voluntary partnerships in all their diversity as one of the most practical means of delivering sustainable development outcomes, and has appreciated UNEP’s role in promoting and supporting such voluntary initiatives. Companies around the world have implemented voluntary initiatives and partnerships for many years, sharing their expertise, resources and knowledge with governments, NGOs and local communities to build markets and better lives. We believe that they hold tremendous potential to supplement governmental actions in the areas of energy, chemicals and tourism, among others.
Business’s views on the critical areas of energy and chemicals management are detailed below.
Energy
Environmental protection and energy for development are crucial and interwoven elements of sustainable development. The engagement and leadership of multilateral organizations with expertise and mandate for energy (IEA, OECD, etc.) with other IGOs, such as UNEP, UNDP and others will help promote mutually reinforcing international cooperation.
Access to reliable, affordable energy is fundamental to economic growth and sustainable development. Like society as a whole, businesses all over the world depend on energy. Access to secure and affordable energy has to be considered as involving a range of business actors in addition to the traditional sectors of power generation, utilities and natural resource extraction. Transport, grid maintainers, automotive and energy intensive sectors are also essential parts of the energy supply and use chain. Their needs and operating realities have to be taken into account as decision-makers consider how to attract and retain the investment that will be necessary to meet the challenges laid out in the UNEP Executive Director’s paper, particularly in developing countries.
In light of expected future growth in world population and energy demand, long-term energy security will be critical. Energy poverty is a primary factor in contributing to poor living conditions and low prospects in many development countries. In addition to energy, the transition from poverty will require concerted efforts to address a wide range of difficult needs, such as clean water, healthcare, sanitation, education and communications.
According to the 2004 WEC Survey of Energy Resources, energy is global, and energy resources are abundant around the world. Energy production, conversation and transport technologies are improving rapidly. This makes it possible to transport energy more efficiently over longer distances and creates favourable logistical conditions that were unimaginable a few years ago. Despite all this, energy accessibility has not improved enough.
We concur with the GCSF that UNEP could play a helpful role in facilitating multi-stakeholder discussions of energy for sustainable development, and with providing educational resources for policymakers on integrating energy, environment and development policies.
We cannot however agree with all the statements in the GCSF statement regarding energy. Because energy is the engine of development, we believe that the lack of access to affordable and sustainable energy is a fundamental challenge for sustainable development. We are concerned that many of the GCSF recommendations would foreclose options for energy access, and deprive communities of sources of more sustainable energy.
Maintaining and growing the energy supplies and options required to provide access to those lacking it and to meet future demand with reduced environmental impacts will require significant investment and improvement in governance and infrastructure. Energy efficiency is critical to any comprehensive sustainable energy strategy. Governments should continue to promote and support energy efficiency among producers and consumers of energy. While this can make a major contribution to limiting growth in energy demand, growing energy supplies and access to them is still essential.
The UNEP Executive Director’s Discussion Paper on Energy and Environment for Development raises questions which we have grouped and answered below.
1) How to integrate energy, environment and development policy making…
Energy challenges do indeed require integrated policies to reflect development priorities and needs; social conditions and aspirations; trade rules; environmental policies; innovation opportunities, global market conditions; technology transfer policies and energy efficiency.
Business and industry is at the nexus of energy, development, environmental stewardship and economic growth, and taking business views and recommendations into account is a necessity for integrated policymaking and implementation in these areas. In recognition of this, the International Chamber of Commerce (ICC), the World Business Council for Sustainable Development (WBCSD) and the World Energy Council (WEC) established Business Action for Energy (BAE). BAE is an ad-hoc, temporary business initiative to provide input to the 14th and 15th sessions (April 2006 and 2007) of the UN Commission on Sustainable Development (UNCSD) and to other important forums in that timeframe. BAE brings together a comprehensive network of businesses from around the world, to communicate that:
· Business is a constructive contributor and indispensable participant in delivering sustainable energy – alongside governments and civil society;
· Business is a willing and active partner in the process through the provision of resources, and the development and deployment of technologies.
Business and Industry can make its best contribution to meeting energy needs with the proper enabling framework conditions, including science based, transparent, stable and uniformly enforced regulatory systems, financing mechanisms, free markets and fair competition. Open free markets provide the best conditions for investment in and provision of energy. Governments should promote and enable investments in energy by leveraging ODA, promoting technological cooperation and exploring other innovative arrangements that would prioritize and support energy for sustainable development.
Due to its unique relationships with governments, concerted anti-corruption, solicitation and bribery efforts in the energy industry should be a priority within such enabling frameworks. To promote investment in the energy sector, the business community sees a strong need to eliminate acts of bribery and corruption as a shared responsibility. Governments have an important role to play in assisting companies in the prevention of bribe solicitation as well as in prosecuting offenders. Inter- governmental actions against bribery and corruption can play an important role.
2) The role of various energy sources and the energy-mix in providing energy for development…
In light of growing energy demand and concerns about energy security, all energy options should remain open, and policymakers should avoid choosing “winners” and “losers.” There is no one size fits all solution, and clearly, a broad variety of energy resources and technologies will be required to meet the varying needs of individual countries and markets. Keeping all energy options open will enable every nation to address its energy needs in the most efficient way, in alignment with its resource base and long-term strategic development objectives. All energy sources should be assessed on their merits and relative attributes, recognising that each face issues, barriers and opportunities including cost, performance, safety, environmental impact, primary resource depletion and energy security.
3) Attracting necessary financial resources – from public and private sources – for more sustainable energy technologies and systems
The planning basis for business development, investment decisions, and cost-recovery may be profoundly affected by governmental commitments and changes in the international framework in the longer term. Uncertainty regarding longer term time frames has already introduced concerns and delays in decision making, especially regarding international investments for energy production and distribution projects to develop long-lived infrastructure.
Many options for evolution in energy systems involve considerable time and expense to alter energy and raw material inputs, operations and products and to develop and introduce technological innovations. Policy makers should commit themselves to a consistent framework over the period of investments, which in the energy sector can amount to several decades.
For markets to work efficiently and effectively, economic prices should give customers a clear basis for their decisions and ensure optimal resource allocation. In many energy markets, distorted signals are being sent out by government agencies that subsidise energy prices. This results in inefficiencies in the supply and use of energy, waste of energy resources, adverse environmental effects and distortion of the market.
Ongoing technological innovation will be critical for solutions to current energy challenges. All relevant stakeholders should allocate resources to research and development of new technologies. Businesses already dedicate substantial resources in technology advancement and the development of innovation. Business will also work with partners in defining mechanisms to identify, develop and transfer energy-related technologies aligned with national priorities and development strategies.
Chemicals Management
The International Chamber of Commerce (ICC) represents businesses along the entire chemicals value chain from all regions around the world. The ICC looks forward to contributing to the SAICM implementation process and working with national governments and other stakeholders to implement workable solutions that bring social, environmental and economic benefits to societies around the world.
Businesses play a central role in providing livelihoods and improving the quality of life for all people. Business is and will continue to be a prime source of innovation, commercialization and distribution of new technologies, products, production processes, management systems and services – all essential for sustainable development.
Business supports science-based chemical risk management that protects and advances public health and welfare while encouraging innovation and economic growth. Business also supports the 2020 goal as set out in paragraph 23 of the Johannesburg Plan of Implementation and as reaffirmed by heads of state at the 2005 UN World Summit:
56 (k) To promote the sound management of chemicals and hazardous wastes throughout their lifecycle, in accordance with Agenda 21 and the Johannesburg Plan of Implementation, aiming to achieve by 2020 that chemicals are used and produced in ways that lead to the minimization of significant adverse effects on human health and the environment using transparent and science-based risk assessment and risk management procedures, by adopting and implementing a voluntary strategic approach to international management of chemicals, and to support developing countries in strengthening their capacity for the sound management of chemicals and hazardous wastes by providing technical and financial assistance, as appropriate.
The chemical industry via ICCA has been actively contributed to the development of SAICM. The chemical industry sees its contribution to the implementation of the global strategy as an opportunity to improve public confidence in the safe management of chemicals and further to promote the benefits of chemistry to innovation and to the global society. The public launch of the ICCA Responsible Care Global Charter and the Global Product Strategy, which took place just in context with the International Conference on Chemicals Management, gave a clear signal to all stakeholders that the global chemical industry is ready to begin with the implementation of its respective objectives out of the SAICM. The chemical industry is also prepared to work together with all stakeholders in the implementation process.
However, SAICM is not only a management strategy for industrial chemicals; it has profound implications for virtually every manufactured product. All products are made from and with chemicals. Businesses from industry sectors around the world have effectively used risk-based approaches to manage potential risks to human health and the environment and will contribute to the implementation of the Strategic Approach by continuing to build upon and strengthen this work. Some examples include chemical management services, green chemistry approaches, life cycle assessment tools, and multi-sector product and environmental stewardship programs.
The ICC supports SAICM as an important step towards all countries’ being assisted to strengthen their capacity for science-based risk management. Businesses support partnerships as an important tool for capacity building and technical cooperation in support of science based chemical risk management. Some examples of partnerships that will contribute to reaching the 2020 Goal and SAICM’s implementation include the Partnership for Clean Fuel and Vehicles, Chemicals Strategies Partnership’s Chemical Management Services Forum, UNEP/SETAC Life Cycle Initiative, Global Partnership for Capacity Building to Implement the GHS, Partnership to Strengthen Science-Based-Decision-Making in Developing Countries, World Environment Center’s Capacity Building Programs, Suppliers Partnership for the Environment, Green Chemistry Institutes, and the Alliance for Chemical Awareness.
A risk management approach should guide SAICM implementation, and ICC encourages national governments and all stakeholders to carefully consider implementation measures to ensure that they engender a net benefit to society over current chemical management practices. Risk management should be understood within the broader context of sustainable development. Only a risk management approach can provide effective ways to promote the protection of human health and environment with economic growth, job creation, technological innovation and capacity building. Businesses that use chemicals in the manufacture or formulation of their products have effectively used a range of risk based tools and approaches to manage potential risks to human health and the environment. Businesses will continue to build on this work to contribute to meeting the 2020 goal.
SAICM implementation should contribute to ensuring the full implementation of existing intergovernmental programs and should build upon those existing efforts that have proven successful. The ICC looks forward to working with partners to identify such as efforts and considering how these might contribute to the implementation of the strategic approach.
Implementation of SAICM should not reduce the ability of companies to produce and innovate the effective products necessary to protect human health and the environment and to improve the quality of life for all. The ICC urges national governments and stakeholders to carefully select implementation measures and give due weight to the social and economic benefits of the products they might affect
Measures to implement SAICM that encourage mandatory substitution or bans based on a hazard assessment of a substance’s inherent properties would be inappropriate and counterproductive. Potential risks are almost always associated with specific uses of a substance and not its inherent properties. Alternatives must be considered on a case-by-case basis and risk evaluations are essential to determining the costs and benefits of a chemical substance’s beneficial uses and of potential substitutes for each specific application.
The ICC looks forward to working with governments and stakeholders around the world to contribute towards meeting the 2020 goal. It is our objective that SAICM implementation measures are workable, risk-based, built upon initiatives that have proven successful, and considered in the broader context of sustainable development and the improvement of the quality of life for all.
Tourism
Business recognizes that tourism is an important economic and social force in the world, whose current scale and likely future growth have serious social, environmental and economic consequences. Business also recognizes that because of the nature of tourism, it is possible to maximize the positive impacts of the growth of this industry if careful steps are taken and therefore, Business supports the strengthening of UNEP’s knowledge in this area and stands ready to lend its expertise and experience to the discussion.
While governments are essential in providing the necessary regulatory frameworks to make long term tourism more sustainable and more environmentally sensitive, Business stresses that strategies and policies for sustainable tourism should be developed taking into account the aspirations of all stakeholders. Strategic choices should be based on firm assessments of the conditions, problems and opportunities present in each market. A one size fits all approach will not work.
Therefore Business strongly supports the exploration of voluntary instruments such as voluntary certification schemes, internal guidelines and codes of conduct which provide frameworks and/or processes that encourage adherence of stakeholders to sustainable approaches and practices.
Finally, Business recognizes that goal-oriented partnerships between the private and public sector can achieve the sustainability of tourism and that the complexity of the industry requires a strong joint front to define and implement tools aimed at guaranteeing the long‑term economic viability of the sector.