Presentation for the CPR

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• Presentation for the CPR
• Ms. Sylvie Lemmet, Director DTIE
• 12 June 2008

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MTS objective and accomplishments

• Objective of RE/SCP
• Natural resources are produced, processed and
  consumed in a more environmentally sustainable
  way.
• Expected accomplishments
• That resource efficiency is increased and
  pollution is reduced over product life cycles and
  along supply chains.
• That investment in efficient, clean and safe
  industrial production methods is increased
  through public policies and private sector
  action.
• That consumer choice favours more resource
  efficient and environmentally friendly products.

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External assessment

• Online survey RE in a networked world
  (April-May)
• Expert survey (Governments, business industry,
  scientists, standards management experts) 192
  respondents incl 49 governmental
• Non-Technical survey (NGOs, labour unions, SMEs)
  165 responses, mainly NGOs from Asia, Latin
  America and Africa
• Larger governmental and business organizations
  request UNEP to provide policy support help
  facilitate public-private dialogue on regulation
  smaller NGOs underline technical and local
  project support

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LIFE-CYCLE DIAGRAM

• Systemic (Whole Life Cycle) Interventions
• Ecological Fiscal (Tax) Reform
• Product Stewardship Programme
• Product Liability
• Extended Producer Responsibility

CONSUMER NEEDS for PRODUCTS

• Eco-Design
• Design for Recycling
• Design for Green Marketing
• Energy Standards

• Landfill Regulations
• Ban on Hazardous substance disposal
• Regulations on Waste Treatment

Product Development
Disposal

• Cleaner Safer Production
• Resource Taxes
• Eliminating harmful subsidies (e.g. energy)
• Commodity labelling (eg MSC, FSC)

Raw Material Production /Extraction
Re-use Recycling

• Integrated Waste Management
• Deposit-Refund System
• Volume/Weight-based waste charges
• Recycling Targets

Manufacturing
Use
Distribution (Packaging)/ Sale

• Cleaner Safer Production
• Environmental Management system (EMS)
• CSR/ Codes of Conducts
• Emission Standards
• Emission/Effluent Charges
• Emission Trading

• Education, Campaigns, Awareness Raising on
  Sustainable Consumption Sustainable Lifestyles

• Eco-labelling
• Product Taxes
• Energy Efficiency labelling
• Product Certification (Organic agriculture, Fair
  Trade, FSC, MSC)
• Green Marketing/Responsible Advertising
• Sustainable Public Procurement

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Gap Analysis based on external and internal
assessment

• Most feel that
• UNEP should address environmental economic
  dimensions in dealing with RE-SCP, including
  demonstrating gains from RE/SCP
• Life cycle supply chains management seen as
  key tools, which goes along with the priority
  already placed on the strengthening of
  partnerships with business and industry.
• energy efficiency high on agenda (link between
  resource efficiency and climate change strategy)
• Need to strengthen scientific and knowledge base
• Further develop/strengthen enabling framework,
  including through mainstreaming knowledge,
  tools, regulations and incentives
• Work on best ways to inform consumers, widening
  their choice

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Future directions

• Four themes
• (with likely divisional engagement)
• Strengthen and communicate the knowledge base
  (DEWA, DCPI DTIE)
• Build government capacity to establish the
  enabling framework (DRC, DEPI, DELC DTIE)
• Strengthen partnerships with business and
  industry (DTIE)
• Harnessing consumer choice (DCPI DTIE)
• which correspond to the means of MTS
  implementation

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• FLAGSHIP RESOURCE EFFICIENCY PROJECTS

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Strengthening the science based

• Resource Panel panel assembling the science on
  resource efficiency, to guide policy makers and
  business, through
• scientific assessments and expert advice on the
  use intensity, security of supplies and the
  environmental impacts of selected products and
  services on a global level
• initially focusing on metals and biofuels.
  Complemented by Life Cycle Initiative putting
  this thinking into practice.

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Support to governments, and beyond (1)

• Marrakech Process developing 10 year framework
  of programmes to build capacity at national and
  regional levels to shift to SCP.
• Through regional consultations, international
  expert meetings and Marrakech Task Forces
  (including tourism, sustainable procurement,
  education etc.). Moving into pilot implementation
  through task force work.
• WSSD mandate for CSD 2011 endorsement of
  framework.

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Support to governments, and beyond (2)

• Integrated environmental assessments Enhance
  capacities of governments, international
  institutions, national regional institutions to
  adopt an integrated approach to policy
  development and implementation
• Trade
• Promoting the integration of environmental
  considerations in trade agreements and policies
• Enhanced capacities of countries to develop
  implement mutually supportive trade environment
  policies

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Sectoral work with industry

• Private sector initiative Sustainable Building
  and Construction Initiative (SBCI)
• initially focusing on energy efficiency in the
  use phase of buildings (accounts for 40 of
  energy use in OECD countries), feeding into
  efforts to mitigate climate change
• moving into resource efficiency in the
  construction phase, and avoidance of use toxic or
  hazardous materials in construction
• Work on Corporate Environmental and Social
  Responsibility, Global Reporting Initiative

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Examples of technology transfer related
activities (1)

• Waste
• Support to country in assessing and implementing
  Environmentally Sound Technologies (integrated
  waste management, debri waste management)
• Environmental Management of the Iraqi Marshlands
  Project
• Identification and implementation of
  environmentally sound options to provide drinking
  water, sanitation and wetland

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Examples of technology transfer related
activities (2)

• Cleaner and safer production focusing on
  preventive strategies and technologies for RE and
  to avoid pollution and accidents
• UNEP-UNIDO network of NCPCs providing direct
  support to industry, Design for Sustainability
  (D4S), including energy efficiency and to support
  MEA implementation.
• Safer production to identify industrial risks,
  initiate risk reduction and mitigation measures,
  and develop co-ordinated preparedness between
  industry, local authorities and the local
  population.

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Examples of technology transfer related
activities (3)

• Transport sector
• 1 billion people exposed to outdoor air pollution
  exceeding WHO standards, up to 1 million
  pre-mature deaths annually
• Transport sector emitting one-quarter of global
  greenhouse gasses today to grow to one-third
• Although almost all future growth of transport
  demand/ vehicles will be in developing countries
• lacking infrastructure for public transport and
  non-motorised transport (like bus rapid transit
  and bicycle lanes)
• lack of clean and efficient fuels and vehicles
• Need for technology transfer, knowledge and
  capacity building

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Progress of leaded petrol phase out in
sub-Saharan Africa
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UNEP Fi

• Objective
• To identify, promote and realize the adoption of
  best environmental and sustainable practices at
  all levels of financial institution operations.
• Find a common ground between the objectives of
  the financial services section and the
  sustainable development
• Help companies understand the opportunity for
  new investment and the risk of inaction.

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Why this Finance Initiative?

• Activities of financial institutions will affect
  or be affected by some aspects of the environment
• Finance sector is a catalyst for all capital
  transactions and thus plays a very central role
  in economy

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UNEP Fi Integration of sustainable banking
Responsible banking Where a fully integrated
business approach includes promoting national and
sector competitiveness through sustainability
Competitive sustainability advantage An
integrated business approach recognizing
sustainability opportunities as well as risks
Reactive banking Recognizes environmental and
social issues as risk only
Defensive banking A defensive state of denial
on sustainability issues
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UNEP FI Activities
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UNEP and Climate Change
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UNEPs Experience in Climate Change

• More than 20 years of work on the issue
• Support to scientific and legal mechanisms
• Helped establish the IPCC with WMO in the late
  1980s
• Conducted scientific assessments of climate
  change for the 1992 UNCED
• Supported the negotiation of the UNFCCC
• Strong competencies in
• Finance, including CDM
• Energy
• Ecosystems
• Environmental assessments
• Law and governance

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UNEPs Distinctive Features

• Broad environmental perspective and integrated
  approach to environmental challenges
• Global mandate for action on normative and
  operational projects in developing and developed
  countries
• Scientific expertise supported by a wide network
  of scientific institutions and UNEP collaborating
  centres
• Convening power and a proven ability to work in a
  multi-stakeholder manner, including with the
  private sector

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Medium Term Strategy

• MTS Objective
• Strengthen the ability of countries to integrate
  climate change responses into national
  development processes.
• MTS Expected Accomplishments
• (a) Adaptation planning, financing and cost
  effective preventative actions are increasingly
  incorporated into national development processes
• (b) Countries make policy, technology, and
  investment choices that reduce GHG emissions,
  with a focus on clean and renewable energy
  sources, energy efficiency and energy
  conservation
• (c) Improved technologies are deployed and
  obsolescent technologies phased out, financed
  through private and public sources
• (d) Increased carbon sequestration occurs through
  improved land use, reduced deforestation and
  reduced land degradation
• (e) Country policy-makers and negotiators, civil
  society and the private sector have access to
  relevant climate change science and information

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Strategic Framework 2010-11

• SF Objective
• Strengthen the ability of countries to integrate
  climate change responses into national
  development processes.
• SF Strategy
• (a) Facilitate countries transition to low
  carbon societies.
• (b) Assist countries to reduce vulnerability and
  build resilience to the impacts of climate
  change.
• (c) Improve the understanding of climate change
  science and its use in sound policy making.
• (d) Improve the general understanding of climate
  change

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PoW 2010-11 Bringing it all together
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Facilitate transition to low carbon societies

• provision of analytical support, including
  assessments of renewable energy potential and
  economic studies in key energy and climate change
  policy areas
• provision of policy support focusing on advising
  governments on energy efficiency and the
  development of renewable energy policies
• operational interventions to support governments
  implement renewable energy and energy efficiency
  programmes and reduce GHG emissions.
• Technology transfer

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PoW 2010-11 Bringing it all together
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Facilitate transition to low carbon societies

• Provision of analytical support including
  assessment of costs, risks and opportunities of
  financing clean energy and low carbon
  technologies
• Provision of policy support for scaling up CDM
  into new countries, regions and sectors.
• Operational interventions for example to mobilise
  local bank lending for users of small-scale clean
  energy technologies and provision of seed capital
  finance through regional development banks and
  micro-credit institutions.
• Clean energy finance

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Build on Partnerships

• A few examples
• UNFCCC Secretariat
• UNFCCC Secretariat will take the lead on
  supporting the inter-governmental process and
  UNEP will help provide substantive analysis and
  inputs on mitigation, adaptation, finance,
  technology support and communications.
• UNDP
• UNEP will develop the innovative tools and
  methodologies and pilot test these. UNDP will
  help scale up successful approaches.
• World Bank
• World Bank will focus on finance while UNEP will
  help shape the portfolio of investments (through
  the Climate Investment Funds for example) and
  provide experience on capacity building and
  institutional support for clear energy and
  renewable finance.

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Build on Existing Portfolio - Mitigation

• Renewable energy
• Resource assessment financing clean energy
  enterprises co-hosting REN21 secretariat (GTZ)
  sustainability standards for biofuels.
• Energy efficiency and conservation
• Supporting energy service companies (GEF)
  guidelines on industrial energy efficiency
  (UNIDO-UNEP network NCPCs) partnership of
  building construction industry urban transport
  air quality projects.
• Clean energy finance and carbon market
  development
• Variety of efforts to help finance sector support
  clean energy
• Major programme on CDM, technical assistance to
  developing countries (focus on Africa), helping
  expand CDM into weak areas, developing a CDM
  project database and CDM Bazaar (with UNFCCC
  Secretariat).

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Example Clean Energy Finance

• Assess gaps the help develop and support public
  interventions that allow markets for renewable
  energy and energy efficiency to get started and
  grow
• Test new avenues for making public and private
  sector investment happen
• Two thrusts
• Partner one-on-one with first mover financial
  institutions to develop and implement new
  products, commercial strategies or investment
  approaches that demonstrate industry leadership
• Bring together many actors to develop and share
  information and build awareness/capacities,
  helping accelerate the mainstreaming of
  investment into the sustainable energy sector

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Analysis Frameworks for Targeting Proposed
Interventions
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Example End-user Finance to Scale Up Markets

• PROSOL a Tunisian Success Story
• Two-year project in Tunisia with National Agency
  for Energy Conservation, national electricity
  utility, banks, solar water heater suppliers
• Aim create a long-term market for solar hot
  water heating systems
• Components finance, capacity building, awareness
  raising, carbon finance
• Supported by the Government of Italy under the
  overall Mediterranean Renewable Energy Programme
  (MEDREP)

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Main Features of the PROSOL Financial Scheme

• A loan mechanism over a 5-year term with
  repayments made through utility bills
• A capital cost subsidy for each SWH provided by
  the Tunisian Government (56 euro/m2)
• Discounted interest rates on loans offered to
  consumers
• Customers can buy CHEAP and pay SLOWLY
• A quick and simplified procedure for loan
  approval and system installation
• Roughly 28,000 systems have been installed under
  phase 1 (2005-2007), which saved approximately
  300 000 tons of CO2. Under phase 2 (2008-2011),
  we anticipate saving an additional 1.2 million
  tons.

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PROSOL Results Surface Installed
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