1 Towards Sustainable Consumption in Latin America and the Caribbean Programa de las Naciones Unidas para el Medio Ambiente Programme des Nations Unies pour l’Environnement United Nations Environment Programme Programa das Naçoes Unidas o Meio Ambiente Oficina Regional para América Latina y el Caribe Regional Office for Latin America and the Caribbean Brazil, November 2001 Dr. Diego Masera Regional Co-ordinator of the Industry Programme

2 Report Structure Part I: Sustainable Consumption – What it means –1.1Population, Consumption and the Environment –1.2Inter and Intra-generational Equity –1.3Equity in Consumption Part II: Current Consumption Patterns –2.1The Globalisation Process –2.2Changes in Consumption Patterns –2.3Unequal Benefits Part III: Sustainable Consumption - The task ahead –3.1Obligations of Governments –3.2 Obligations of Industry –3.3 Obligations of Consumers –3.4 Sustainable Product Development –3.5 New Paradigms Conclusions

3 Background Rio Declaration Principle 8: “…states should reduce and eliminate unsustainable patterns of production and consumption.“ Agenda 21 Chapter 4: “...the major cause of continued deterioration of the global environment is the unsustainable patterns of consumption and production…”

4 Sustainable Consumption “the use of goods and services that respond to basic needs and brings a better quality of life, while minimising the use of natural resources, toxic materials and emissions of waste and pollutants over the life cycle, so as not to jeopardise the needs of future generations.” (CSD III)

5 Population, Consumption and the Environment "Overpopulation is not determined by numbers alone, but rather by numbers times the per capita consumption...

6 Inter and Intra-generational Equity Inter-generational equity: the earth is passed to us by our ancestors, to be enjoyed and passed to our descendants in the same or better conditions in which we received it. Itra-generational equity: refers to differences within different segments of the same generation.

7 Equity in Consumption The foremost concern of any consumption policy must surely be meeting the consumption needs of the current poor – feeding, clothing, housing, educating, and healing the ill among the poverty stricken of the world.

8 LAC Economic and Social Situation in In México, is $160 billion dollars - In Central America is $17 billion dollars Economic growth of 3.2% annually Poverty Growth: 224 million of persons in 1999 (12%) Increased inequity: 20% > income 20% < income Increased unemployment Lower salary value 500,000 professionals left the region Increased External Debt = 19 1

9 Inequalities in Consumption 1.3 billion people live on less than 1 US dollar a day. The overall consumption of the richest fifth of the world’s population is 16 times that of the poorest fifth; Nearly 160 million children are malnourished. More than 880 million people lack access to health services · 1.5 billion lack access to sanitation and clean water.

10 The Globalisation Process The degree to which external liberalisation and reliance on the marketplace are to occur are matters of choice that individuals, firms, governments and NGOs make. The critical challenge for the near future will be to ‘domesticate’ the globalisation process, to model and steer the process for the benefit of the majority of the population.

11 Changes in Consumption Patterns The Rio +5 conference reinforced the need to develop more sustainable patterns of consumption and production. Achieving a factor 10 level of productivity improvement in the long term with a factor 4 increase among industrialized countries in years starting from The new goal is to create more wealth while consuming considerably fewer resources

12 Obstacles The existing economic system does not take into account the wider environmental, ethical and social factors of both consumption and production. There is therefore a need for a more holistic and inclusive costing mechanism.

13 Tools The key tools will be cultural values that are appealing to people who will apply them in order to increase their own quality of life. Information plays a central role in changing consumption patterns.

14 Sustainable Consumption: the task ahead “….for developing countries sustainable consumption does not mean not consuming. It means achieving a better quality of life for all, it means sharing between the rich and the poor…. Industries fear losing markets. In reality, sustainable consumption will bring new business opportunities”.

15 Obligations of Governments Minimising resource utilisation: by increasing efficiency in the use of energy and resources, by minimising waste generation. Exercising leadership: by ensuring sustainable government procurement policies, and by sectoral policies in such areas as land use, transport, energy and housing. Reinforcing values: by education and information programmes

16 Obligations of Governments One industrial reform which governments can enact, using both legislative and economic approaches, is internalisation of costs – making the producer pay for the full price of production (with environmental and social costs included).

17 Industry Obligations Develop technological and social innovations to improve quality of life and tackle depletion of resources; Practice eco-efficiency; Build alliances ; Provide and inform consumer choice; Improve market conditions; Establish the worth of the Earth; Make the market work for everyone.

18 New Methodologies In Product Efficiency and beyond ‘end-of- pipe’: –Sustainable Product Development. –LCA (Life-Cycle Assessment). –EPR (Extended Producer Responsibility). –IPP (Integrated Product Policy). On Process Efficiency of the entire industry production cycle: –Cleaner Production. –Eco-Efficiency.

19 Sustainable Product Development SPD is the process of planning and designing that integrates the following elements into a product: Resource-use Efficiency Product Quality Production Organisation and Efficiency Local Culture and Capacities The Market, and ‘End of life’ issues

20 Obligations of Consumers Consumer groups of the LAC have to make a greater commitment to the sustainable consumption drive. Consumer conscience has to be sufficiently modified such as to effect changes in behaviour. Consumers have to be convinced that when they vote with their pocket they are in fact exercising a social, moral and political responsibility.

21 New Paradigms Need for a suitable and acceptable replacement for the current consumption model It should bring improved quality of life all Allow for greater time for family and community life, more involvement in cultural practice and development.

22 Selling Performance Instead of Goods’ Focuses on de-materialization Higher level of resource productivity (factor 10) achieved through a service economy that employs ‘utilization value’ as its central notion of economic value and measures its success in terms of asset management by revalorising the existing stock of goods and optimising their utilization

23 A new industrial model Value social and environmental gains as much or more than economic gains: Introduces no hazardous materials into the air, water and soil; Measures prosperity by how much natural capital can be accrue in productive ways; Measures productivity by how many people are gainfully and meaningfully employed; Measures progress by how many buildings have no smoke stakes or dangerous effluents; Produces nothing that will require future generations to maintain vigilance over; Celebrates the abundance of biological and cultural diversity and solar income.

24 ‘Integrated Product Policy’ The IPP proposes to remedy the current unsustainable situation by applying a range of policy instruments in a coordinated, integrated and complementary manner. It is based in the fact that there is no single solution that will apply to all cases and therefore, it proposes a series of instruments that will be used on a case-by-case basis. Instruments range from voluntary agreements to direct legislation

25 Conclusions The current state of the environment and the characteristics of the industrial sector in LAC shows very little improvements in relation to ten years ago and limited progress in the promotion and introduction of sustainable consumption patterns. Need to encourage, promote and incorporate sustainable consumption in its policies and development plans, ‘Domesticate’ the globalization process

26 Conclusions MSEs need to be actively involved in the process. SPD and cleaner production need to be widely disseminated. Need for international and bi-lateral cooperation programmes on sustainable consumption

27 Conclusions Finally, sustainable consumption is a common and shared responsibility of Governments, civil society and industry which need to work together to promote new approaches and look towards a sustainable future in the region.

28 Programa de las Naciones Unidas para el Medio Ambiente Programa das Naçoes Unidas o Meio Ambiente Oficina Regional para América Latina y el Caribe Blvd. de los Virreyes 155, Lomas de Virreyes CP México, D.F., MEXICO