1. Integrating the Three Pillars of Sustainable Development:
UNITED NATIONS
ECONOMIC COMMISSION FOR EUROPE
Integrating the Three Pillars of Sustainable Development:
Challenges and Opportunities in the ECE Region
Ján Kubiš
Under Secretary-General and Executive Secretary of the UNECE
New York
4 October 2011 1

2. Structure of presentation
Introduction
Sustainability in the ECE region
The underlying factors
Examples of good practice
The role of the ECE in promoting sustainable development

3. Introduction
The Great Recession hit the ECE harder than any other region of the world
Employment remains below and poverty above pre-crisis levels in most ECE countries
Transition to an inclusive and sustainable society will have to be achieved under difficult conditions

4. Trends in Inequality
Over the last two decades inequality has been increasing throughout the ECE region
Underlying factors: changes in technology, globalization and government policy
Although inequality has increased, in most ECE countries the poorest have been protected

5. Intergenerational Equity
Intergenerational issues are of major importance for sustainable development
Most ECE economies face a demographic ageing problem
Provision of pensions is well developed but their financing has not been adequately addressed
Climate change may result from an excessive discounting of the interests of future generations

6. Social sustainability in the ECE Region
The ECE remains less unequal than other regions
Only the Nordic economies have been very successful in achieving equity with growth
Inequality in the European emerging economies varies considerably
Social transfers reduce poverty but their sustainability is threatened by adverse demographic and economic trends

7. Markets are not enough Social transfers and poverty, 2007 21.0 19.0
UNITED STATES I
17.0
TURKEY
15.0
Share of population with less than 50% of
median income
13.0 F
11.0
GERMANY
POLAND
9.0
FINLAND
7.0
DENMARK
5.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
26.0
28.0
Social transfers (% of GDP)

8. Trends in Environmental Sustainability
Over the last two decades CO2 emissions have increased in ECE advanced industrial economies
CO2 emissions decreased in Emerging Europe and Central Asia – industrial restructuring and improving energy efficiency in transition economies
The high social cost of this type of carbon-saving transition makes it unsustainable

9. Annual average growth of CO2 emissions, %7 6 5 4 3 2 1
World US
China
EU-15
Emerging Europe and
Central Asia -1 -2

10. Environmental Sustainability in the ECE
High-income countries
high level of human development & heavy ecological footprint
Low and lower middle-income economies
lower level of HD & light footprint
Upper middle-income economies
intermediate level of HD & heavy footprint
High human development & light ecological footprint – a new growth model needed

11. Towards Inclusive Green Growth in the ECE

12. Markets likely to deliver good results, if
Market Failures
The unsustainable development trends due to market failures and policy failures
Markets likely to deliver good results, if
there is competition
all relevant costs are internalized in prices
property rights are clearly defined and well enforced
ECE emerging economies – significant progress in the development of effective markets and legal institutions

13. Policy Failures
Policy failures have contributed to unsustainable trends in the ECE region
Subsidies for environmentally harmful and socially unsustainable activities continue in most countries
Some policy failures reflect strong political constraints

14. Examples of Good Practice
ECE countries provide a number of interesting examples of good practice
They show that evidence-based policies can improve
environmental sustainability
economic performance
sustainability of social security systems

15. Three interactive priorities
The EU 2020 Strategy
The EU 2020 Strategy – most ambitious policy initiative for sustainable development
Three interactive priorities
smart growth
sustainable growth
inclusive growth
Employment, innovation, education, social inclusion and climate/energy goals for 2020

16. The Role of ECE
ECE projects and international legal instruments contribute to the emerging global, regional and national governance for sustainable development
The 7th Ministerial Conference “Environment for Europe” in Astana – no one-size-fits-all approach for the transition to a green and inclusive economy
ECE member States supported the development of an internationally agreed roadmap and a toolbox with concrete instruments and measures for the green economy as a potential outcome of Rio+20

17. Copy of this presentation is available at:
THANK YOU