1. Environment and Development; Trends in Latin America and The Caribbean February 2004 Inter-American Development Bank

2. 2 Environmental Underpinnings of Sustainable Development Latin America and the Caribbean depends on the environmental services such as those provided by:  Forests  Coastal and marine ecosystems  Terrestrial biodiversity  Surface and ground water  Soils

3. 3 Environmental Progress  Environmental institutions  Laws  Conservation programs, establishment of protected areas  Focus on urban environmental concerns, air quality, sanitation, solid waste management

4. 4 Challenges Despite significant investments from countries, multilateral banks, bilateral agencies to specific environmental programs the trend indicators point to:  greater environmental degradation and depreciation of natural capital; and  Poorer health, declines in productivity and income, physical vulnerability and diminished quality of life

5. 5 The problem areas in natural resource and environmental management  Water resources  Forest resources and biodiversity  Marine-coastal resources  Energy  Urban pollution  Vulnerability to natural disasters  Climate change

6. 6 Trends Forests, soils and biodiversity In ten years, region has lost 4.7 million hectares of forest per year, resulting in extensive loss of:  Soil  Biodiversity and genetic resources  Water Development Impact: reduction in agricultural productivity, vulnerability to flooding and droughts, loss of tourism

7. 7 Trends (cont.) Urban Environments Transportation patterns in urban areas are causing acute deterioration of air quality:  Increases in particulate matter, carbon dioxide, nitrogen oxides, sulphur dioxides, and volatile organic compounds.  More than 100 million people are exposed to pollutants at levels that exceed WHO air quality standards Development Impact: respiratory illnesses resulting in 100,00 deaths each year

8. 8 Trends (cont.) Water Resources  76 million people lack access to safe water 15% of total population  Less than half of the population is connected to sewage treatment services. Development Impacts: gastrointestinal infections, premature infant mortality

9. 9 Trends (cont.) Coastal-Marine Resources Coastal ecosystems and estuaries are being degraded  Destruction of mangroves  Loss of coral reefs due to pollution  Oversfishing Development Impact: loss of livelihood in fishing, tourism, and aquaculture

10. 10 Trends (cont.) Climate Change At present relatively small contribution to overall GHG emissions. Region vulnerable to climate change:  extreme weather events  flooding, loss of coastline  drought, fires  Development Impacts: loss of infrastructure, productivity, livelihood, and lives

11. 11 Trends (cont.) Natural Disasters Region vulnerable to earthquakes, floods, fires, tropical storms, hurricanes, droughts and landslides:  Average of 40.7 disasters per year (1990-1998)  Poor most affected Development Impacts: Loss of life, economic losses ($20 billion 1990-1998), infectious diseases, homelessness

12. 12 Gross and net savings (% of GDP) 0%5%10%15%20%25%30%35% Middle East and North Africa Rest of Africa Eastern Europe and Central Asia Latin America and Caribbean South Asia Developed Southeast Asia and Pacific Net savings Environmental Degradation Environmental Degradation Genuine savings in LAC

13. 13 -20%-15%-10%-5%0%5%10%15%20%25%30% Nicaragua Haití El Salvador Guatemala Colombia Venezuela Guyana Bolivia Paraguay Trinidad y Tobago Uruguay Antigua y Barbuda Ecuador Argentina Belice Barbados Jamaica Perú México Rep. Dominicana Chile Brasil Honduras Costa Rica Panamá Gross and net savings (% of GDP ) Net savings Environmental Degradation Genuine Savings in LAC, by Country

14. 14 Weak Environmental Institutions  Lack of technical and financial resources  Poor public participation processes  Ineffective policies and programs

15. 15 Lack 1 Policy Coherence  Environment is a significant factor in health, agriculture, energy, transportation, trade, etc.  Policies often work at cross purposes, eroding environmental gains or impeding them

16. 16 New Approaches 1.Strengthening Environmental Governance  technical and financial sustainability of environmental institutions  Regulatory frameworks with emphasis on monitoring,and enforcement  Environmental management instruments: environmental information, market-based measures, economic valuation of natural resources and environmental services

17. 17 New Approaches 2. Mainstreaming environmental considerations into social and economic policies  Capacity building for developing economic and social policies that shape the behavior of individuals, institutions and companies.  Developing tools that help quantify the environmental benefits and costs of policies  Integrating environmental considerations with other strategic priorities such as modernization of the state, enhancing competitiveness, social development and regional economic integration

18. 18 Implications Environmental sustainability as a core element of development effectiveness Address the interface between environment and:  modernization of the state,  competitiveness,  economic integration, and  social development

19. 19 Priority areas of action 1.Modernization of the state and the environment  Strengthen environmental governance  Improve financial sustainability  Support decentralization processes  Support a wide range of management instruments

20. 20 Priority areas of action (cont.) 2.Competitiveness and the environment  Preserve the productive value of natural resources and ecosystems  Promote public and private investment  Promote clean production mechanisms  Establish systems of certification and accreditation  Promote green goods and services

21. 21 Priority areas of action (cont.) 3.Social development and the environment  Address health-environment linkages  Support rural communities and indigenous groups  Reduce environmental risk

22. 22 Priority areas of action (cont.) 4.Regional Integration and the environment  Strengthen environmental institutions, policies and programs  Identify potential environmental stresses and opportunities  Promote effective regional management of shared public goods (watersheds, corridors, etc.)  Apply adequate environmental analysis and monitoring in regional infrastructure initiatives