4 th International Experts Meeting on Environmentally Sound Technologies Otsu, Japan 4 th December 2003

Outline 1.Objectives of the workshop 2.UNEP’s role 3.Definition of ESTs 4.Core criteria 5.Consultative process 6.Task Group 7.Performance assessment 8.Decision support tools 9.Conformity assessment programs and initiatives 10.Overall conclusion

1. Objectives of the Workshop Review global criteria for the assessment and identification of environmentally sound technologies from a regional perspective Advance sustainable development and the transfer of environmentally sound technologies within the Asia-Pacific Region Forge official and informal relationships between technology developers, regulators and policy makers in the Asia Pacific region.

Objective To provide an update on the core EST criteria developed by IETC and to examine their relevance to various existing EST decision support tools and methodologies

Objective To discuss regional perspectives on the appropriate application of EST criteria, methodologies and tools. This includes discussion of technology transfer, trade and policy issues, as well as potential areas for synergy and collaboration.

Key Questions from a Regional Perspective What are the opportunities for EST development in the Asia Pacific Region? How do we develop an agenda to achieve synergy amongst stakeholders in the region?

2. UNEP’s Role Catalyst Facilitator Provides a “Platform” Offers a Framework Increasing the likelihood that ESTs will be adopted and used

Overall Technology Transfer Objectives of UNEP/IETC To advance transfer, adoption and use of environmentally sound technologies (ESTs) related to urban environmental management and freshwater management, through capacity building and information exchange.

Guiding Principles Working together towards a common approach UNEP can provide guidelines but national governments and others must implement Focusing on what can be achieved Taking a strategic approach

Objectives of UNEP/IETC EST Initiative Test “Version 1.0” of the criteria for ESTs in developing countries Do a reality check on the overall initiative Assess the availability of and ability to access information on ESTs and technology performance Establish databases, data sets and QA/QC programs as appropriate Obtain leverage through action

Overview of UNEP EST Initiative 5 year program to improve awareness and understanding about ESTs 3 expert meetings thus far: –Bangkok meeting in September 2001 –Jeju meeting in February 2002 –Osaka meeting in March 2002

3. Definition of ESTs Based on Agenda 21 Arose from the UN Conference on Environment and development (UNCED) – The Earth Summit – in 1992

Chapter 34 of Agenda 21 defines ESTs as technologies which: “protect the environment, are less polluting, use all resources in a more sustainable manner, recycle more of their wastes and products, and handle residual wastes in a more acceptable manner than the technologies for which they are substitutes”

Agenda 21 also states that: “new and efficient technologies will be essential to increase the capabilities (in particular of developing countries) to achieve sustainable development, sustain the world’s economy, protect the environment, and alleviate poverty and human suffering. Inherent in these activities is the need to address the improvement of technology currently used and its replacement, when appropriate, with more accessible and more environmentally sound technology”.

As stated in Agenda 21, ESTs in the context of pollution are“process and product technologies that generate low or no waste, for the prevention of pollution”. They also cover “end of the pipe technologies for treatment of pollution after it has been generated”. Furthermore, ESTs are not just individual technologies, but total systems that include “know-how, procedures, goods and services, and equipment as well as organizational and managerial procedures”.

Thus the definition of ESTs: applies to all technology and the transition of all technology to more “environmentally sound” technology captures the full life cycle flow of the material, energy and water in the production and consumption system covers the full spectrum from basic technologies that are adjunct to the production system, to fully integrated technologies where the environmental technology is the production technology itself

…and includes closed system technologies (where the goal is zero waste and/or significant reductions in resource use), as well as environmental technologies that may result in emissions and high levels of resource use considers technology development within both the ecological and social context.

4. Core Criteria for ESTs (as proposed by UNEP/IETC EST Expert Group 7-8 March 2002)

Background on the development of core environmental criteria for assessing and evaluating ESTs Bangkok meeting agreed to retain the current Agenda 21 definition Definition allows for continual improvement Context, initial criteria, and the perspective of developing countries were discussed Further consultation took place in Korea and Osaka, including elaboration of the core criteria as well as sectoral, regional, technological specific issues.

Core EST Criteria (Version 1.0) Version 1.0 is the result of consultations with experts and other stakeholders Can serve as an initial set of EST core criteria As it evolves subsequent versions will be adopted Note: “optional” criteria are also indicated

ESTs should be: Environmentally sound Economically viable Socially and culturally acceptable Characterised by sufficient, verified information

Protects the Environment Core Criteria Compliance with local, national and regional environmental standards or internationally recognized standards (e.g. ISO) Compliance with multilateral environmental agreements (MEAs) Optional Criteria Cumulative air, water and waste emissions Overall impact on ecosystem health and integrity Compatibility with immediate and adjoining facilities and systems Potential for geomorphological, landscape and ecohydrological impacts Ecological footprint

Uses Resources in a More Sustainable Manner Core Criteria Efficiency of energy, water and materials use, relative to the product or service provided Useful life of technology, and of products/services Relative use of renewable/non-renewable resources Conservation of water, including portion of recycled water used Use of “environmentally friendly” materials Sustainable use of local resources

Less Polluting and Handles Wastes in a More Acceptable Manner Core Criteria Total quantities of wastes (solid, water, gaseous) generated Quantities of toxic wastes produced Potential for generation of secondary pollutants/byproducts Waste(air, water, and solid) treatment and disposal requirements Generation of noise/vibration Thermal losses and radiation emissions Potential for climate change impacts Optional Criteria Potential for long range transport of pollutants Potential for soil contamination

Recycles More of their Products and Wastes Core Criteria Use of recycled, reused and waste materials and by- products Optional Criteria Incorporation of closed loop processes Life cycle performance

Characterized by Verified Information All Optional Criteria Compliance with fundamental scientific and engineering principles Performance at different settings and at different locations Sensitivity to specific operating conditions Replicability Reliability and potential for system failure Profiling of risks and uncertainties Information verified by 3 rd party

Other Factors Cost Receptor Capacity Innovation Process Ability to Apply New Technologies

Generic EST criteria to facilitate initial screening followed by sector specific standards Criteria need to be measurable, quantifiable Technologies that get through the initial screening are not necessarily ESTs and therefore should be fully assessed

5. Consultative Process… ongoing… Further development of these core criteria will be ongoing Subsequent versions (i.e. 2.0, 3.0, etc…) will emerge from this process as feedback is provided through consultations IETC Task Group to be established to guide this process.

Components of the UNEP/IETC EST Consultative Process Elaboration of EST definition and context Core EST Criteria Sector Specific Site Specific Technology Specific

6. IETC Task Group on the Further Elaboration of EST Definition and Context The work of this Task Group will serve as an important initial interface on the social and economic aspects of sustainability and other issues including further examination of things that are difficult to quantify Concepts to be explored include (Industrial Ecology, Industrial Symbiosis, CASE, DFE, Eco-efficiency, CP, Ecological Footprint, etc…) Builds on existing and ongoing work including the Ethics Paper currently being developed

Task Group will examine the following: Needs of developing countries Factors influencing the uptake of ESTs (and Sustainable-ESTs) Linkages to MEAs (incl. Biodiversity) Short-cuts for developing countries (and how to benefit from lessons learned) Link to governance (not just democracy) Sustainable development as a process (rather than an “end in itself”)

Task Group will also help: Clarify what we mean by “sustainable technology” Define the mechanisms that would make ESTs sustainable Link technology to its broadest impact through systems integration Explore issues related to changing economic dynamics and policy including the application of discount rates, subsides, etc…

Task Group will also examine the following: Innovation cycle and Ways of “leaping forward” (eg DFE) through lessons learned LCA/ material and energy flows Absolute criteria vs relative criteria (eg use of renewables) Multi criteria analysis and other integrative tools

Task Group - Next Steps Conceptual framework, supporting paper and action plan with clearly defined steps Further elaborate consultation process on sector, site and technology specific issues Networking (through IETC Intranet and other mechanisms) and interaction with other groups Inventory of “concepts”, process tools and a “decision tree” Identification of pilot and demonstration projects with some key early-stage applications

7. Environmental Performance Need to assess environmental performance at different levels Also need to identify and implement opportunities to improve environmental performance throughout the technology development cycle.

Indicators of environmental performance should be: Easy to understand Supported by data Sensitive to data collection cost Verifiable and reproducible

Indicators of environmental performance should reflect: Trends and timelines Local circumstances and goals An understanding of the “triple bottom line”

Environmental performance cannot be assured; it must be established and reconfirmed for the entire life cycle, by employing accepted procedures, and judging against established criteria. A technology that is assessed to be environmentally sound in a given locale, culture, economic setting or stage in its life cycle may not be in another. A technology that qualifies as being environmentally sound at one point of time, may not do so at another. Challenges Related to EST Performance

Characterising the Environmental Performance of Technologies Two level approach: –Global/generic  “Environmentally Sound Technology Performance Assessment (ESTPA) –Locale/Application specific  Environmentally-focussed Technology Assessment (EnTA)

Requirements for Assessing and Evaluating Technology Performance Defining the context in relation to sustainability Stakeholder involvement and collaboration Defining the boundaries (or scope) of the assessment Monitoring and reporting

Context Technological Cultural values Location Scale Time Dynamics of change

Stakeholder Engagement – Key Elements Determining expectations Defining policies and strategies Building local capacity

Engaging Different Kinds of Stakeholders

Other important factors Defining the Boundaries of the Assessment Monitoring and Reporting

8. Decision Support Tools Many approaches are possible (eg voluntary ecolabelling, industry benchmarks, etc.) Also performance verification – existing programs in North America and emerging ones in Asia.

Various tools and methods are already available Emission standards EIA CP/CT Declaration Environmental Master Plans Benchmarking Greening of the Supply Chain LCA ………but in developing countries, most of these are donor driven

Applying Various Assessment Tools –Technology Assessment –Environmental Impact Assessment –Risk Assessment –Life Cycle Assessment –Ecosystems Valuation

Example of “Cross-Cutting” Decision Support

Environmental Technology Assessment (EnTA) Facilitates identification and selection of ESTs Encourages consensus amongst multiple stakeholders Improves quality of decision making

Evaluating Environmental Consequences

Step 2: Identify Environmental Pressures Factors that Determine Environmental Consequences The characteristics of the pressures (e.g. the nature and quantity of the resources consumed and wastes released). The nature of the pathways. The characteristics of the receiving environment (e.g. community values, hazard pathways, number of people or animals exposed, and sensitivity of the receiving environment).

EnTA Information that is generated during the performance assessment and verification of a given technology will produce no tangible environmental benefits unless it is used to ensure that specific technology investment decisions result in the selection of the most appropriate EST for a given locale, application and other circumstances.

EnTA There is a reasonable level of harmony between the proposed EST criteria and the environmental pressure and outcome categories used in EnTA. The information that would be available if the proposed suite of indicators was to be used to characterise an EST would find useful application in EnTA and could serve to enhance the rigour, objectivity and certainty of that assessment procedure

EnTA extends the assessment process to include categories of criteria that relate to sustainable technologies, rather than being restricted to ESTs. Thus EnTA involves a more holistic assessment, by including considerations of social and cultural acceptability and economic viability. As progress is made towards defining sustainable as opposed to environmentally sound technologies, one can envision even more harmony between the EnTA categories and the suite of criteria and indicators.

Other Tools Environmental Impact Assessment Risk Assessment Life Cycle Assessment Ecosystems Valuation

9. Selected Conformity Programs and Initiatives

All involve… Measurement standards Transparent reporting of information

Needs and challenges in developing countries Transparent, reliable environmental performance information Assistance in the development and application of test methods and protocols Harmonization where practical

Ecolabelling Blue Angel Environmental Choice Nordic White Swan Green Seal GEN (Global Ecolabelling Network) etc…

Blue Angel Environmental Label Jury (made up of representatives from citizen, environmental, industry, and union organisations) makes final decisions on product categories and award criteria. There is no official public review process.

Environmental Choice Program (ECP) Draft guidelines for product and service categories are subject to a 4-8 week public review period Notification is also sent directly to interested individuals and groups Comments and supporting information are taken into account when modifying the final guideline

Nordic White Swan Label Members of National Boards represent consumers, environmental authorities, non- governmental organisations, trade and industry, and research institutes. Draft criteria are sent out for review.

Green Seal (US) Review process involves manufacturers, environmental organizations, consumer groups and government agencies.

Global Ecolabelling Network (GEN) Membership open to national or multinational ecolabelling organizations run by not-for-profit organizations without commercial interests Consultation is based on voluntary participation of potential licensees. Seeks advice from and consults with stakeholder interests.

Verification Environmental Verification of Technology (EVT) Environmental Technology Verification (ETV) Environmental Performance Evaluation of Technology (EPET)

Verification - Options to consider Testing against standards established by a third party…or agreed upon through stakeholder consultation Testing against performance claims of manufacturers Testing of performance relative to other technologies… or benchmarks

ETV ETV is a voluntary system to provide validation and independent verification of environmental technology performance claims ETV provides endorsement for both established and emerging technologies It is not a duplication of the ISO Environment Management Series.

Brief History of ETV 1995: Federal ETV Program established in the US by US/EPA. Robust and relatively costly, currently operating from six subject ‘nodes’: air pollution control, greenhouse gas prevention, drinking water treatment, water protection and pollution prevention, recycling and waste treatment systems. US/EPA ETV has agreements with Philippines and Indonesia, negotiating with Thailand, Taiwan and India. 1997: National Canadian ETV system established. Less costly but less robust than the US system. The ETV Canada has established MOUs or technology partnerships on ETV with California, New Jersey, Pakistan, India, Russia, Poland, negotiating with Bangladesh and China. 2000: Major conference theme at ‘Globe 2000’ held in Vancouver.

Examples of Technology Verification Programs ETV Canada US/EPA ETV Program California ETC Program Korean ETV Program etc…

US Environmental Protection Agency ETV Program Stakeholder Groups consist of representatives of all verification customer groups (e.g. regulatory personnel, consulting engineers, technology purchasing organizations, developers and vendors) for particular technology sectors Stakeholder Groups guide and inform EPA and its verification partners

Environment Canada ETV Program Voluntary program designed to provide third-party independent assessment and validation of vendors’ claims regarding performance of their technologies. Delivered on behalf of Environment Canada by ETV Canada Inc. (a private sector organisation) licensed to use the ETV logo and issue verification certificates. Environmental technology vendors apply to ETV Canada Inc. for verification of the performance claims they make. Testing is conducted by “verification entities” (e.g. specialised laboratories under contract with ETV Canada qualified to provide technology performance testing services).

Korean ETV Program Korean ETV program (operated by EMC) 3 rd Party Review using verification entities Basic protocols are developed by these entities and augmented as required Similar to ETV Canada and US/California/EPA programs

ETV in Australia 1999:Federal working group, supported by the CRC for Waste Management established to investigate the possibilities for ETV in Australia, however a low response rate to a survey conducted by the group suggested low interest in ETV. 2001:ETV seminar held at EPA Melbourne in November Federal position was that ETV has merit. However establishing an ETV system in Australia was ruled out due to the projected high costs of establishing such a system. 2002:ETV Working Group formed in the State of Victoria to review options for the establishment of cost-effective ETV for Australia by utilising existing technical, organisational and intellectual resources. The initial work being undertaken by the Victorian Working Party is being funded by the Department of Innovation, Industry and Regional Development.

Challenges for ETV in Australia –Many believe that for the continued development of a vibrant environmental industry in Australia, local industry must have access to a locally administered, pragmatic, cost-effective ETV system, and that having an internationally accepted ETV system will be an essential tool for exports. –It has been further argued that there is a need to raise awareness of the objectives and opportunities for ETV in Australia and to establish ETV in Australia “before we miss the boat” –To avoid “reinventing the wheel ”, one option would be to form an Australian body to operate as a franchisee/licensee of an established internationally recognised system.

GHG-related verification Kyoto (UNFCCC) GHG Emissions Trading (UNCTAD) AIJ Pilot (World Bank) GERT & GHG-SMART (Canada) etc…

Kyoto Protocol Under the Kyoto Protocol, there are a number of approaches currently being considered for reducing GHG emissions:

Allowance System – This involves specific industry sectors, regions or countries being allotted a cap on GHG emissions that they cannot surpass. Companies can trade permits in order to achieve the allowance targets. Verification, certification and registration of emission allowances at a company level is important to ensure that targets are being met. Companies also want to ensure that they are receiving real emissions reductions when they trade.

Regulatory Standards - A system based on regulatory standards would use penalties for non-compliance as a means to drive businesses and industry sectors to meet their pre- determined targets. Regulatory standards require verification, certification and registration of GHG emissions to ensure that the standards are being met, and that commitments to meet reductions are occurring.

Carbon Charges - A carbon charge is a measure that might be applied to the consumption of carbon (e.g., fuels such as oil, gas and coal) at a rate dependent on the amount of carbon emissions produced. Verification would also be needed for this approach.

Credit for Early Action - Rules for early action credits provide incentives to organizations to reduce emissions earlier rather than later. In doing so, credits for early action are created which may have value in trading systems. Regardless of how the rules emerge, companies claiming credits for early action would have to verify that these are legitimate and real.

National Inventories and Country Reports - Verification is also part of the substantiation accompanying country reports under the Kyoto framework.

EMS ISO ISO Registry EMAS etc…

ISO series A series of voluntary generic standards that provide business management with the comprehensive framework for managing the environmental impacts of a company’s processes and activities. The standards include a broad range of environmental disciplines, e.g. basic management system, auditing, performance evaluation, labelling, and lifecycle assessment. The standards are all guidance documents (i.e. “descriptive”) except for ISO which is a “prescriptive” document and the model for an environmental management system.

The ISO Registry The purpose of this Registry is to allow organizations to publicly announce their conformance (either through self-declaration or third party certification/registration) to ISO While the focus is primarily small and medium sized companies, the Registry is open to any enterprise regardless of size, sector, organizational profile, or geographic location.

Benchmarking & Reporting CERES Report Environmental Benchmarking Network Responsible Care WSSD Sector Reports etc…

CERES Report Inception in Based on a standardized corporate environmental report format developed with the collaboration of Fortune 500 companies, progressive smaller companies, institutional investors and other environmental organizations. The CERES Report is revised annually through a collaborative industry- environmental-investor process.

WSSD Sector Reports Initiative launched by UNEP/DTIE involving 22 key sectors Supports WSSD Addresses vertical and horizontal issues Provides an account of performance against sustainability goals

EST Information Systems maESTro ICPIC EST-IS SANet aboutRemediation.com CLU-in.org etc…

10.Overall Conclusion – Part 1 The establishment of criteria and indicators for assessing and verifying an EST will greatly enhance the quality of decision making related to technology interventions and investments. The challenge now is to ensure that EST assessment and verification programmes make full use of the proposed criteria and indicators and that they are effectively incorporated within the suite of available environmental decision support tools. Having the core criteria (Version 1.0) will allow us to move forward, while continuing to evaluate and strengthen them.

Outline – Part 2 1.Challenge 2.Ideas 3.Specific needs 4.Road map 5.Regional action plan 6.“Top line” items 7.Next steps 8.Some further comments

1. Challenge Define the common ground Establish a platform to facilitate mutually supportive approaches and mechanisms for evaluating the environmental performance of technologies Build on and augment current initiatives

Challenge Mainstreaming… inclusiveness Ensuring relevance to decision-makers and investors Usefulness to developing countries Link to sustainability… and “Sustainability Index” Link to sectoral initiatives (e.g. building and construction, transportation, other) Strengthening networks Quality management and continual improvement

Challenge - Creation of a Regional Initiative Barriers and Opportunities –Including the role of financial institutions (i.e., credit unions and investment funds) Elements of a Roadmap (consensus on this) –Defining the “common ground” –Way forward… steps –Link to WSSD, etc. Strategy and Framework for Action –Fit the tools to this, if appropriate –Other actors (both pioneering and consensus-oriented) –Pragmatic actions

Regional Initiative - Opportunity Development of an Asia-Pacific Strategy for EST promotion, adoption and use

2. Ideas - Regional Initiative (ETC) –UNEP can only provide guidelines, criteria, etc. (UN constituents will implement) –Each country will want its own Environmental Industry to be competitive –Regional co-operation necessary in working together on a “Common Approach” –Leverage is essential –Transfer of ESTs and impact on biodiversity and cultural diversity is a key issue

(Thailand) –Current status – Tools (i.e., Standards, EIA, CP declaration, CP “Master-plan”,etc…) are donor-driven –Technology transfer largely dependent upon imported technology –Introduction of technologies and tools into different countries should be appropriate –Asian approach to criteria/guidelines would be desirable –Need financial resources to implement –Need capacity building, training, test methods, protocols etc… –Also, need equipment –Awareness & education on ESTs is essential –Supportive of EST initiative - IETC should lead, but need a clear picture of UNEP 5 year programme

(Vietnam) –Transition/transformation of economy is important –Needs include: information on ESTs and criteria information on alternative technologies Criteria and standards Monitoring performance against standards Capacity building (ESCAP) –Public-Private Partnerships (P3) are important but what is proper mix? –Basic information is required on initiatives, expenditures and ODA to identify where we currently stand

(Aus) –Environmentally soundness not relevant driver; sustainability is more important as driver –Labeling is not enough nor adequate –Clear and credible benchmarks are essential –3 rd party accredited testing facilities are needed –Keep it simple –Financing – lack of information …raising awareness –Corporate residual liability… regulations and governance –Focus initially on “low hanging fruit” (ex. Mining, then heavy industry, etc..) –Public environmental reporting and disclosure –Nurturing SME success and growth –Also, market and export potential

(WA) –Political agreement on specific outcomes on what the region wants to achieve by use of ESTs –Commitment to open industrial policies, find synergies, and harmonize policies around environmental benefits/outcomes –Process of mapping pathways of technology development to achieve outcomes (i.e., where do we want to be?) using “fore” and “back” casting techniques –Country, business, community accords – define the steps that need to be taken –Focus aid and development assistance more effectively –Align industrial policies and remove barriers, including negative subsidies –Focus on partnership benefits

(Aus – GI) –Create a strategic module linked to EnTA (for example) –Implement a 2-pronged approach Create a New Future – ecorestructuring of economy, “leaping forward”, foresighting, etc. Continue to meet basic requirements –Focus on key drivers, including: Environmental standards/regulations Learning from past mistakes and avoiding future decline Recognizing “waves” of industrialization and compatibility issues (i.e. countries without the “old ways” are better off) Supporting a competitive and dynamic economy with immediate local and global benefits Support the “sustainability promoting firm” concept Explore transformative funds and ethical investments Empower change agents to push for higher standards Establish “stretch” goals and mechanisms (i.e. Zero waste by X date) to drive innovation

(CSIRO) –Define what is practically achievable - country by country, sector by sector –Testing of criteria in developing countries, promulgation, leverage through action, reality check –Make info available on technologies and their testing –Database QA/QC –Identifying common approaches to performance assessment

(CUT) –Needs Assessment is essential –Technology collaboration, cooperation and capacity building are necessary –Local industries have a key role –Seed/Venture Capital is required –Engineering small-ware is needed focusing on processes, monitoring and optimization (“manage what you measure”) –More discussion on regional strategies is needed.

3. Specific Needs Assessment of needs both on the demand and the supply side Different drivers must be considered (including social and economic) Recognition of differences amongst countries within the region Incremental improvement

Specific Needs – Capacity Building Need to consider capacity building and know- how, not just technology This involves: –Raising awareness –Changing attitudes –Training –Education –Knowledge –Informed judgment –Financial support

Specific Needs –Technology Cooperation and Collaboration Need to define the roles of the private and public sectors Need to define how ODA and other financial assistance is now provided Need to transform IFIs to ensure that environmental sustainability is taken into account Need seed capital to encourage the use of locally developed technology

Specific Needs – Measuring Performance Benchmarks must be clear and credible (ie. Internationally recognised) Testing facilities must be accredited The process must be simple and easy to follow Measurement tools are essential (i.e., meters, etc.) – “we can manage what we can measure” Monitoring and reporting

Specific Needs – Application of EST Criteria Continue efforts to augment definition of ESTs Encourage use of sustainable alternatives (eg minimise pollution, use energy more efficiently, etc.) Optimize existing processes, technologies and facilities Address potential impacts on biodiversity and cultural diversity

Specific Needs – Developing Country Perspective Communication between governments and enterprises can be a problem. Different levels of action need to be taken (i.e. local, national, global). Need to help SMEs with the uptake of ESTs Capacity building and leverage are needed Funds can be used to lever outside funds, but training is needed on know how to use these funds effectively.

Different needs and different levels of development throughout the Region need to be taken into account Assistance needs to be provided bearing this in mind Market mechanisms and poverty must be considered Smaller scale decentralized solutions are needed

Specific Needs – Regional Perspective A regional framework linked to national governments and enterprises would be helpful Would serve as a network for cooperation in the region and for raising awareness of EST concept However a mechanism is needed to recognize disparities

Sustainability and equity issues in the region are significant and major changes are needed ESTs are a pathway for resolving issues and catalyzing change Australia and New Zealand have an opportunity to play a key role within the region

4. Strategic Roadmap - Key Drivers Defining the “big picture” in a logical manner Creating an environmentally competitive economy while avoiding economic decline Moving beyond local to global sustainability Harmonizing approaches Creating and implementing strategies for transformation and change

Strategic Roadmap – One approach to engage stakeholders (Source – Environment Australia)

Source: adapted from Queensland EPA

Roadmap Phase 1: Baseline position established by: Ensuring that a compliance management system is in place Establishing baseline indicators by conducting inventory, scoping study, audit or assessment Developing performance targets or identifying benchmarks Developing strategies to improve performance and an implementation plan Engaging drivers to champion internalisation of sustainability

Roadmap Phase 2: Efficiency gains realised through the implementation of: systems or system improvements technology and process improvements by-product exchange community consultation education programs performance reporting TBL accounting and reporting

Roadmap Phase 3: Strategic, innovation & market advantages realised through: Public reporting Influencing supply chain interactions Encouraging socially responsible investment Increasing access to and market penetration of ESTs Meeting external verification of environmental or sustainability performance Leveraging other strategic, innovation or market advantages

Roadmap Phase 4: Positioned to respond to or set future realities by: Adapting to the rapidly changing market place and/or regulatory environment Setting or influencing future market realities and/or regulatory requirements

Simplification of the roadmap from a regional perspective Tools Actions Feedback Continual improvement

Compliance & Inventory EfficiencyInnovation Development of ESTs (Supply Side) Application of ESTs (Demand Side) Sustainability Actions Tools Actions Tools Actions Tools Actions Tools Actions Tools Actions Tools Actions Tools Actions Tools

Compliance & Inventory Know where you are and where you want to be Know where things fit and where are the gaps

Efficiency Apply technology and knowledge through partnerships in order to achieve leverage Optimize…

Innovation Solve problems and spin off the solutions to other areas Demonstrate results

Sustainability Shape future market realities and be positioned to respond

A further simplification … Adapt/ Meet Basic Requirements Leap/ Innovate Demand Supply

… based on a 2-pronged approach Work to improve the present situation Simultaneously work towards the creation of a new future

5. Action Plan for a Regional Strategy Multiple levels to consider – regional, national, local Interaction and continuous feedback Leverage and synergy

Regional National Enterprise Provide: Needs Assessment Tools Technology Cooperation Agreements Facilitate: Innovation Barrier Removal Cooperation Identify: Technology Requirements Barriers Cooperation Harmonise: Performance Assessment Guidelines Criteria Benchmarks Implement: Evaluation Programmes Verification Programmes Exchange: Evaluation/Verification Protocols Establish: Regional Data Base on ESTs Provide: Decision Support Tools (EnRA, EnTA etc) Capacity Building Establish: National Data Base on ESTs Mobilize: Financial Resources Facilitate: Uptake of ESTs ESTs: Adopt Evaluate Identify & Select: Appropriate ESTs

Key Milestones (Timetable) UNFCCC (COP 7.4) ASEAN Secretariat mid-May Prep Com 4 in Bali 24 May - 7 June WSSD Aug -Sept Eco Asia Ministerial Nov. Habitat 15 next year

Regional Action Plan Undertake needs assessment (specific needs as well as the need for capacity building ) Provide needs assessment tools that accommodate regional diversity How: –need to assess what tools already exist –OECD experience/approach relevant, as is CSD work –GAP/SWOT analyses might be appropriate UNEP ROLE UNEP does not have specific tool, but a tool required IPCC, CSD, Publications, etc…

Regional Action Plan Influence the substance and approaches underlying Technology Cooperation Agreements to facilitate “leaping forward” Operate at a higher level, and be more comprehensive How: –need to assess what agreements already exist –GAP/SWOT analyses might be appropriate –CP Declaration might provide a good model but needs follow-up –WBC work may be relevant (report due next month); WB did case study of buying out IP, to augment and accelerate potential benefits. UNEP ROLE UNEP does not have specific tool, but a tool is required IPCC, CSD, Publications, etc…

Harmonize/ “Internationalize” performance assessment criteria, guidelines and benchmarks How: –Promulgating the process at lower level (e.g. a sub-regional approach) –Lexicon of terminology (not just acronyms and definitions, but also practical explanations) –Measuring performance against the core EST criteria by documenting procedures and making information available –Applying criteria and standards that can be verified to minimize risk UNEP Role – Expert Group “Internationalizing” the assessment procedures and criteria Regional Action Plan

Exchange Evaluation/Verification Protocols Facilitate compatibility How: –Need to share directly and by providing links –Countries already taking different routes –Face to face and electronic communication and information exchange… UNEP ROLE Clearinghouse function with ESCAP and ASEAN Secretariat Regional Action Plan

Establish regional Database on ESTs How: –Already done –APREN (regional; Aus/NZ still to “sign up”) –ESTIS (national, but linked, feeding information into APREN, and downloading from other databases) –Need national databases, to support regional database, and vice versa –National delegates should report on APREN discussions and opportunity to use ESTIS –Improve depth and detail in maESTro UNEP ROLE UNEP/IETC doing this through ESTIS, APREN, etc… Regional Action Plan

Provide decision support tools (EnRA, EnTA etc) and related capacity building How: –In addition to site specific ESTs, need support for higher end of the Tech Transfer process  capacity enhancement –Need credible “stretch goals” – develop inventory of best practice/exemplars, perhaps via links, using a portal –Also need to reach out to policy makers UNEP ROLE – EnTA resources available on WWW Conventional training (incl Training the Trainer) courses underway EnTA Online ready in May (CD and Web accessible) Similar approach with EnRA, EMS etc Web site – emlearning.net; public domain resource Regional Action Plan

Mobilize financial resources (or their proxies), plus economic and non market incentives How: –Transformative funds, eco funds and ethical funds –Find workable solutions in financing ESTs – innovation needed –Regional clearinghouse for information on funding of ESTs –Availability of funding not the only issue; need to link the innovators with the financiers (“incubators” and “angel investors”) –Characterise the risk and raise awareness –Work with venture capitalists and technology start-ups on verification of performance in order to bring confidence to investors –Promote EST “investment tours” UNEP ROLE – Financial Institutions Initiative (run by UNEP/DTIE) GEF mechanism for specific application areas SANET – supporting broader initiatives, including ESTs IETC focus – waste, water and construction technical assistance is available IETC also developing an inventory of resources for financial resources Regional Action Plan

Stimulate innovation How: –Need tools that can help stimulate “leaping forward” –Address upstream opportunities –Examine similar and related initiatives e.g. Dutch initiative (see “green innovation” web site ) University based industrial transformation project Japanese innovation initiative WBCSD – innovative technology sustainability report. –Promote a dialogue amongst leaders (perhaps via Global Innovation Strategy) UNEP ROLE Further work is needed in this area Link with United Nations University Take stock and link with other initiatives Regional Action Plan

Assist SMEs How: –Identify and implement mechanisms that encourage and enable SMEs to adopt ESTs –Engage with Technology Advancement Centres, Cleaner Production Centres, and Technology Incubators –Examine similar and related initiatives e.g. Dutch initiative (see “green innovation” web site ) University based industrial transformation project –Facilitate demonstration projects UNEP ROLE DTIE in Paris assists in various ways (e.g., national CP centres, as well as production and consumption, ozone, chemicals units) – all delivered via national governments Context of MEAs; training, information materials, databases, etc Regional Action Plan

Assist communications between national governments and the private sector (including SMEs) How: –Work with local governments –Facilitate partnerships with the private sector –Develop a good communications plan for this initiative –Promote good governance UNEP ROLE Many initiatives At WSSD UNEP/DTIE will present findings for 22 industry sectors in relation to Agenda 21 Regional Action Plan

6. “Top Line” Items Key “top line” items that need to be addressed in moving this initiative forward

“Top Line” – Guiding Principles Revisit and reemphasize guiding principles Ensure overall strategy and top line activities are supportive of MEAs as well as regional sustainable development initiatives Establish a UNEP inventory of stretch goals (e.g., a 20-fold decrease in resource use) and match targets to the appropriate tools Mobilize financial resources to address environmental enhancement and poverty alleviation

“Top Line” – Strategic Positioning Political level agreement on objectives/outcomes of the UNEP EST initiative Revisit industrial policies and strategies to build synergies and harmonise approaches that can help drive the transition to sustainability Map potential pathways for the development of innovative solutions leading to desired outcomes Employ innovative approaches to create awareness and engage stakeholders

“Top Line” – Empowerment Identify and support key change agents and stakeholders Empower the people who can actually make the changes that are needed Foster action at the “lowest” appropriate level – i.e. foster bottom up changes

“Top Line” – Enabling Environment Create an enabling environment for EST uptake, including: –utilization of criteria, guidelines, protocols and tools for the identification and uptake of ESTs –establishment of effective regulatory/ incentive systems –communication and awareness Strengthen key pathways and mechanisms for EST transfer Transform and strengthen management at all levels in order to make activities more environmentally sound (including management by national and local government in countries where this is dominant) Build capacity to achieve major breakthroughs and leaps forward

“Top Line” – Innovation Pursue a dual strategy simultaneously: Encourage innovation to allow major technology leaps Build capacity to accelerate transfer and uptake of ESTs Bring money and ideas together Focus on ideas and know how - versus products Encourage change agents to “push the envelope” “Carrot versus Stick” has marketing potential given the perception that regulations will become more stringent

“Top Line” – Collaborative Networks Cooperation will ensure that progress is made Exploit the large multiplier effects of collaborative approaches, including an EST network (i.e., APREN) Use creative collaborative approaches to enhance EST investments Commit to networking, collaboration, connection and partnerships in order to foster the evaluation, transfer and adaptation of ESTs to local conditions Commit to sharing of knowledge and expertise with colleagues and other key players in the identification, selection and uptake of ESTs, both on an individual basis and via regional mechanisms Identify and implement a “win win” paradigm for the uptake of ESTs to assist movement along the path to sustainability Promote good governance

“Top Line” – Information Systems A regional database on ESTs makes sense APREN has already been established and many Asia-Pacific countries have already signed up ESTIS is now available to support individual databases in countries and the ability to voluntarily upload onto a regional network ‘Leaping forward” needs to be rolled out through ESTIS - This is important for the establishment of a new economic development path.

“ Top Line” – Influencing Financial Decisions Examine the need for a new competitive dynamic (i.e., the “sustainability promoting firm”) Mobilise financial resources and their proxies (i.e., barter, etc) Conduct survey of sources of funds for ESTs, including pension funds, transformity funds and ethical investments funds, and their applicability to different stages of development (Note: development banks are not the only structure for this) Link to the UNEP financial institutions initiative and the GEF mechanism Advocate a strong role for ESTs in SANET, including access to experts and consultants.

Need to create a network by aggregating through an incubator a number of people and ideas (e.g., an integrated package to match minimum of a $20 million dollar investment) Awareness raising at the financial level as well as for those who are bringing the project forward (i.e., Angel investor, incubator, proponent) SANET could help in this regard

“Top Line” – Performance Assessment Harmonize performance assessment approaches and methodologies Take steps to ensure that performance assessment is not used or seen as a trade manipulation tool Demonstrate the effective application of EST criteria, guidelines, protocols and tools to ensure the adoption and use of ESTs Disseminate knowledge, methods and tools that will help reduce ecological footprints at both the national and enterprise level

7. Next Steps UNEP/IETC Expert Group (and related Task Group) already established The “internationalisation” of environmental performance assessment and evaluation already underway IETC intranet site in place to facilitate ongoing dialogue

Need to crystalize the regional framework and action plan going forward Regional framework should be linked to the needs of national governments, local authorities and enterprises Need a Regional Forum on ESTs to further investigate barriers and opportunities

Need to advocate at ministerial meetings Briefing materials should be prepared following the ASEAN Leaders Forum Format (UNEP 2-pager) Expert group and task group meetings should continue Need a Lexicon of definitions and terminology

Regional seminar on ESTs for Waste, Water and Construction (Perth, May 2003) – ensure its effective implementation as well as the transfer and uptake of the seminar outputs