Market-Based Opportunities in East Asia

1
Market-Based Opportunities in East Asia

• Arthur J. Hanson
• IISD

2
Green Is In

• Green Growth
• Green Economy
• Green Development
• GREEN MARKETS

3
SustainabilityMarkets Depend on

• Regulation
• Supply/Demand Factors
• Incentives
• Knowledge/Organization
• Cost Internalization

4
Regulation Should

• Provide FRAMEWORK promoting market-driven action
  beyond compliance
• Penalize UNSUSTAINABLE PRACTICES
• Open NEW ECONOMIC OPPORTUNITY

5
Market Shifts - Supply

• Scarcity
• Substitution
• Technology Advances
• Acceptable/Good Practices
• New Models

6
Market Shifts - Demand

• Wealth/Consumption Growth
• Sophisticated Tastes (Travel, Food, Leisure)
• Safety, Health, Environment
• Global Regional Watches
• New Factors (Low Carbon, Biodiversity, Working
  Conditions, etc.)

7
Incentives

• Increased Access to Markets
• Eco-compensation
• Price Premium/ Government Procurement
• Fiscal Policies/Subsidy Tax Shifts/RD
  Investment

8
Knowledge

• Intervention Points in Market Supply Chains
• Understand Pricing Dynamics in Real Time
• Technology Options
• Capacity Development

9
Organization

• CSR Corporate Social Responsibility
• CBD Community-based Development
• Consumer Awareness
• NGOs
• Marketing Self-regulating Bodies

10
Cost Internalization

• Triple Bottom Line
• Address Market Inefficiencies Scale, Vertical
  Integration, etc.
• Create New Products, Processes Services
• Turn Environmental Problems into Opportunities

11
Key Needs

• Financial Sector, Enterprises Associations
• Government
• Suppliers Consumers

• Business Case
• Enabling Framework
• Sustained
• Supply
• Demand

12
EXAMPLES of Market-based Approaches
13
Marine Aquarium Council
CertificationPartnerships The Conservation and
Community Investment Forum that collaborates with
MAC in South East Asia to design and finance
conservation solutions. Reef Check that has
developed methods to assess and monitor the
health of coral reefs and aquarium fish and coral
stocks in collection areas Terangi, the
Indonesia Coral Reef Foundation demonstrates and
prepares collectors and their communities for MAC
certification UNEPs World Conservation
Monitoring Centre along with the MAC has
developed an international database to provide
credible information on marine ornamental trade.
- CopperWiki
14
Coral Reef Tourism Recreation - Philippines

• Sust. Fisheries USD 620
• Coastal Protection 326
• Tourism Recreation 108
• Willingness to Pay 10
• TOTAL USD 1, 064 million

http//siteresources.worldbank.org/INTPHILIPPINES/
Resources/PEM05-ch1.pdf
15
Technology, Certification of Timor Leste Coffee
In 2009, about 67,000 households grew coffee in
Timor-Lestewith improved technology for coffee
farmers, gross margins could increase by an
average of about 500/ha from only 120/ha. -
World Bank (2010)
16
Maritime Shipping

• CKYH Green Alliance Partners COSCO, K-Line,
  Yang Ming, Hanjin Shipping
• Eco-steaming, Super-slow
• Cold ironing technology
• Nano-emulsion Fuel System
• Energy reduction in container ports

- Bunkerworld May/June 2010 p24
17
Fish Health Safety Certification

• HACCP USA
• Japan Traceability Direct Involvement of
  Retailers
• Europe Shrimp Ban

http//siteresources.worldbank.org/INTRANETTRADE/R
esources/Topics/Standards/JapanCountrySurveyF.pdf
18
China Organic Food Certification

• 2002 China Green Food Development Center
• 2005 National Standards Certification, Uniform
  Logo
• Intl Cooperation, NGOs

http//www.wilsoncenter.org/topics/docs/going_orga
nic_dec07.pdf
19
Oil Palm Certification

• Round Table Sust. Palm Oil (RSPO) WWF, Industry,
  Stakeholders
• Certification, trading, traceability
• Indonesian Sustainable Palm Oil (ISPO Standard)
  Coming Soon
• NGO Campaigns against Food Companies has created
  change

20
Low Carbon Economy, Green Growth Dev.

• South Korea, China, Indonesia, etc.
• Significance to Coral Triangle for possible
  carbon credits, eco-compensation
• Renewable Technologies Transfer of Experience

21
Conclusions

• No Shortage of Examples
• Generally Slow Progress
• Inconsistent Application
• Failure to Develop Full Package
• Opportunities Never Greater

22
Thank You!
ajhanson_at_iisd.ca