United NationsDepartment of Economic and Social Affairs Sustainable Development

European Union

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COMMISSION ON SUSTAINABLE DEVELOPMENT
Fourteenth Session, New York, 01 ? 12 May 2006
Delivered version, 04 May 2006
INDUSTRIAL DEVELOPMENT
Accelerating industrial development for poverty eradication
· Industrial development can be an engine for poverty eradication and for achieving the
Millennium Development Goals providing it is environmentally, socially and economically
sustainable. Sustainable industrial development is a challenge for all countries as current
patterns of industrial activity, including energy production and consumption, both in
developed and in developing countries, are largely unsustainable in terms of the three
pillars of sustainable development (economically, socially and environmentally).
· The EU sees a mutually reinforcing relationship between environmental protection,
competitiveness and social cohesion. The challenge is to make it possible for developing
countries to put these win-win opportunities into practice and to benefit from the
development and application of sound environmental and resource -efficient technologies
and -systems.
· For the development of programs for affordable, clean and resource-efficient
technologies, improved access to such technologies is essential. Further efforts are also
needed to improve cooperation between countries on technology, regulatory and
administrative issues. This will provide opportunities for leap -frogging for developing
countries and countries with economies in transition.
· In developing countries, as well as in countries with economie s in transition and
industrialized countries, education and training for sustainable development provide
unique solutions to develop appropriate technologies and strategies, based on regionally
specific cultural heritage and natural resources. Education and training for sustainable
industrial development, sustainable consumption and production and appropriate
management methods - should as far as possible be included in business schools,
vocational curricula and in training for the management of all industrial sectors as well as
for policy makers.
· Tailored and focused training and capacity building is also a tool to promote sustainable
consumption and production in micro and small enterprises and in the informal sector.
Education and training for sustainab le development could provide solutions based on
specific cultural and natural experiences to build appropriate technologies, management
systems and strategies but also innovative methods and approaches.
· In building business capacity, technological innovation and cooperation, in particular of
small and medium-sized enterprises, unsustainable industrial practices must be
addressed. Improving business capacity, especially of SMEs, should focus on enabling
them to access and compete better in high value markets by helping develop the
necessary skills, knowledge, technology, market information and financial resources. It
also includes the development of business support services.
· To support women entrepreneurship it is of particular importance to secure women legal
rights, including rights of inheritance, and equal access to secure tenure of land and
finance. Loans to women entrepreneurs are also important as women often start
business in areas for which banks usually are more restrictive.
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· Industrial development is closely linked to the further integration of developing countries
in international trade. Developing countries, in particular the least developed, should be
fully integrated in the international trading system and to be able to reap the benefits of
international, regional and bilateral free trade agreements, which should include goods of
export interest to them, including agricultural and environmental goods. At the same time
it is important that international environmental and trade agreements are o n equal footing
and mutually supportive.
· To facilitate trade and enhance the capacity for compliance with foreign regulatory
standards a clearinghouse for information could be created to inform the business
community of upcoming regulatory changes affecting trade in developed countries.
· Finally we need to enforce ILO core labour standards. Employment and decent work
issues can be an important vehicle for economic growth and poverty reduction as also
highlighted in the recommendations of the first Trade Union Assembly in Nairobi in
January this year. A well functioning labor market contributes to a positive climate of
investment, an increased economic growth and a fair income distribution.
· These employment issues deserve to feature high on the international agenda for poverty
reduction. The International Labour Organization, ILO, plays a vital role in the work
towards reaching the Millennium Development Goals. Its activities in this respect deserve
to be further strengthened.
· The CSD should send a clear message to this year?s high -level segment of the United
Nations Economic and Social Council, ECOSOC, which will be devoted to "Creating an
environment at the national and international levels conducive to generating full and
productive employment and decen t work for all, and its impact on sustainable
development".
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Industrial development and sustainable natural resource management
· Industrial development must not exhaust resources at the expense of the current and
future generations. Our economic activities must take into account the carrying capacity
of ecosystems. The main objective for sustainable industrial development is to decouple
economic growth and environmental degradation by improving efficiency and
sustainability in the use of resources and production processes and reducing resource
degradation, pollution and waste. This has also economic implications as the inefficient
use of resources is a drag on the global economy.
· Sustainable consumption and production is a prerequisite for sustainable development
and poverty eradication. With the present global consumption and production patterns we
do not relate to our eco-systems and our natural resources in a sustainable manner. The
positive economic development in many parts of the world with a growing middle-class
has the effect that consumption and production habits are changing rapidly and become
more resource intensive. Thus efforts to promote sustainable consumption and
production patterns are an issue for both developed and developing countries.
· An important part of the global work to change unsustainable consumption and
production is taking part within the Marrakech Process. Sustainable consumption and
production is not sufficiently covered in the Secretary Generals report, which we feel is a
shortcoming when discussing possible ways forward. The international meeting on
Sustainable Consumption and Production in Costa Rica in September 2005, the
Marrakech +2, where more than 80 countries and organizations participated, was very
successful. The meeting showed a very positive attitude to and a common interest in
promoting sustainable consumption and production.
· There are large differences among countries, and also within countries, with respect to
income levels and consumption patterns, which require different strategies. For achieving
goals always a mix of instruments will be needed ranging from legal, economic and
voluntary policy instruments to information and communication
· The Marrakech+2 meeting resulted in a large number of practical proposals for initiatives
and measures, which bear close links to industrial development, energy use and use of
hazardous substances in production processes and buildings. Besides others, six tasks
forces have been announced, namely the Sustainable Lifestyles Ta sk Force, the
Sustainable Product Policies Task Force, The Cooperation with Africa Task Force, the
Sustainable Procurement task Force, the Sustainable Tourism Task Force and the
Sustainable Construction and Building Task Force . These task forces are innovative,
action -oriented fora that can address key issues for CSD. We should support their work,
and look forward to them delivering results over the next year.
· We need to address sustainable consumption and production and take active part in the
Marrakech process and commit ourselves to pursuing how to create sustainable products
and sustainable lifestyles.
· National strategies and action plans for sustainable consumption and production are
considered to be a key instrument for gaining progress. Such action plans should be
complementary to sustainable development strategies or should be integrated into these
strategies. The EU will develop an action plan on sustainable consumption and
production, based on the various existing policies and tools in the EU, including the
recent strategies on natural resources and waste, and addressing gaps in current
policies.
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· Applying methods to assess the monetary value of the negative external costs is one way
to address global environmental problems in a cost-effective way. For this there is a need
to develop effective economic and other market based instruments.
· Today industrialisation is taking place in a number of developing countries and countries
with economies in transition. This is a desired development but must take place in a
sustainable way or there is a risk for a double environmental effect. The old
environmental problems, more local and partly reversible such as deforestation and soil
degradation, remain unsolved while new problems, global and more irreversible and
linked to industrialisation such as CO2 emissions, air pollution, increased hazardous
waste and chemicals will be accentuated . Accordingly, there is both a need to ensure
affordable energy access, especially for rural areas, as well as increasing en ergy
efficiency and diversifying energy supply towards cleaner energy sources. The Bali
Strategic Plan should play an important role in promoting sustainable industrial
development through the enhancement of technology support in the field of the
environment.
· Access to energy is vital for any industrial activity. Given the impact of energy use on
climate change, it is crucial that further efforts are made to break the dependency on
fossil fuels through increased energy-efficiency, development of renewable energy
sources as well as environmentally sound technologies and production methods.
· The establishment of an institutional framework and transparency that can attract
investment by domestic and international actors is of great importance. This means
among other things a stable and transparent governance structure. Those countries that
have been most successful in implementing reforms in these areas have achieved higher
rates of investment and economic growth.
· A key initiative that is currently being developed by some governments and private actors
on a voluntary basis is the Investment Climate Facility for Africa, which will be a pan-
African private-public facility aimed at supporting improvements to investment climates on
a national, sub-regional, regional and continental basis. This facility will have the flexibility
to address a range of investment climate issues, including those that are specifically
related to increasing investment in environmental assets.
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