Environmental Innovation Strategy for the Asia Pacific Region

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Foreign Ministry of Japan Environment Ministry of Japan Global Legislators Organization for a Balanced Environment World Summit for Sustainable Development International Eminent Persons Meeting on Inter-linkages Strategies for bridging problems and solutions to work towards sustainable development Asia-Pacific Environmental Innovation Strategy Project Kazuo Matsushita * * The author is Acting Vice-President, Institute for Global Environmental Strategies (IGES). 1 United Nations University Centre 3-4 September 2001 (This paper is based on the material prepared by the Ministry of the Environment, Government of Japan) 1. Background The adoption of Agenda 21 at the Earth Summit in 1992 prompted countries, international organizations, NGOs and other stakeholders around the world to strengthen actions to address global environmental problems. Nevertheless, as the world prepares ten years later for the World Summit on Sustainable Development to be held in South Africa, the vicious cycle of environmental degradation and poverty continues to worsen and the ideal of sustainable development seems further out of reach. More than ever, today the world needs tangible answers to the question of how to achieve sustainable development. Conditions are deteriorating in the Asia-Pacific region, home of two-thirds of the global population, a region expecting rapid population growth and economic development. Many problems exist simultaneously here, because many countries are at different stages of economic development. Examples include the health impacts of industrial pollution, degradation of natural resources caused by industrial development, increases of pollution caused by urban activities associated with greater use of automobiles and a concentration of the population in cities, and increases in greenhouse gas emissions. 2 To solve such problems, the world needs a tangible path toward sustainable development, and clearer plans for implementation. As one step in this direction, since 1993 the ECO ASIA Long-Term Perspective Project (LTPP) has provided policy-makers in the Asia-Pacific region with a scientific basis for policy formulation to achieve sustainable development. Its outcomes will be reported to the Environment Congress for Asia and the Pacific (ECO ASIA) in October 2001. The launch of a new project is needed to achieve sustainable development in the Asia-Pacific region, as a next step forward building on the outcomes of the LTPP. This would also be highly significant as a message from this region to the rest of the world. 2. Objectives and Key Concepts In order to respond to this situation, Japan’s Ministry of the Environment proposes the launch of the Asia-Pacific Environmental Innovation Strategy Project. 2.1 What are the objectives of this Project? The objectives of the Project are three-fold: a) To build the scientific infrastructure necessary to formulate innovative policies for sustainable development, for the use of policy makers in the Asia-Pacific region, and as a common asset in the Region b) To promote environmental cooperation and capacity building, so as to enable Asia-Pacific countries to formulate their own policies that take into account their national circumstances, based on the scientific infrastructure, through participation and collaboration in the Project To propose a model of a regional initiative that explores sustainable development, that can be presented from this Region to the rest of the world c) 2.2 What are the key concepts of this Project? In order to achieve the above objectives, the Project will be designed and implemented along the lines of the following basic concepts: a) Ensure the highest possible level of participation and collaboration of countries and relevant organizations in the Asia-Pacific region 3 b) c) Create a framework in which scientific activities and policy makers interact synergistically and constructively Make the optimal use of the resources of existing regional activities by promoting collaboration and coordination, e.g., with ECO ASIA, the Asia Pacific Network for Global Change Research (APN) and relevant international research projects 2.3 Why is this Project “innovative”? The innovation in this Project can be found in the objectives, processes, outcomes and technical elements as follows:  Innovation in objectives and processes, i.e. establishment of scientific infrastructure readily available for policy makers as a regional common asset through dynamic interaction between scientific activities and policy makers. Innovation in outcomes, i.e. proposal of innovative environmental strategy options including environmentally sound/sustainable technologies and policy integration beyond conventional policy instruments. Innovation in technical elements, i.e. employment of innovative methodologies such as satelliteand ground-based integrated monitoring and environment-economy integrated models.   3. Outline of the Project 3.1 Framework of the Project The Project framework is presented below. The proposed framework will be elaborated through international meetings and workshops of policy makers, scientists and other experts. This project consists primarily of three international scientific activities: satellite- and ground-based integrated monitoring, assessments using environment-economy integrated models, and research on innovative strategy options. Although each of them can function as an individual research project, synergistic effects are highly anticipated through their mutual interactions because they collectively cover major elements required for environmental policy, i.e. understanding of environmental conditions, assessment and future prediction, and policy formulation. Examples of tangible synergistic effects include: 4    Improvement of simulation models using the data acquired from integrated monitoring Quantification of the environmental and economic effects of strategy options using environment-economy integrated models Prioritization of subjects and target areas in studying strategy options using the outcomes of integrated monitoring Their outcomes (scientific data, strategy options, etc.) will be reported at international forums in which policy makers of the Asia-Pacific region participate, and will provide a scientific basis for discussions. In addition, it is anticipated that policy makers will provide policy guidance so that the scientific activities respond to their needs. Linkages will be promoted between these international scientific activities and a global project known as the Millennium Ecosystem Assessment as well as the Environmental Indicator and Performance Review Project which is being considered by the United Nations Environment Programme and the Asian Development Bank. It is hoped that this Project will be communicated to the world as an Asia-Pacific model of regional initiatives to achieve sustainable development and reported at the World Summit on Sustainable Development to be held September 2002 in South Africa. 5 Millennium Ecosystem Assessment and other international projects Create linkages and cooperative structures International Scientific Activities (Participation of research institutes in the region) Satellite- and ground-based integrated monitoring International organizations (ADB, UNEP, etc.) Assessment using environment-economy integrated model Strategic database for policy making Joint project Research on innovative strategy options Policy guidance Scientific database and options Expert meeting (ECO ASIA Panel) Eminent Person’s Forum and other international forums Environment Ministers’ meeting (ECO ASIA) Propose Asia-Pacific model World Summit on Sustainable Development (WSSD) 6 3.2 Major Components of the Project (1) Integrated Environmental Monitoring The Project will continuously track, assess and analyze environmental changes over time, using the Moderate Resolution Imaging Spectrometer (MODIS) mounted on board the Earth Observing System (EOS)-Terra satellite launched by the United States in December 1999, in order to determine current conditions and changes in natural resources, including forest loss, desertification, soil runoff, and depletion of water resources. The following are the main components of this sub-project:     Development of a MODIS data network covering the Asia-Pacific region Development of a ground-based monitoring network to validate the satellite data Establishment of a MODIS data analysis system Development and application of simulation and analytical methodologies for natural resource-related indicators through integration of satellite and ground data Preparation of the integrated monitoring system is being carried out jointly by Japan’s National Institute of Environmental Studies (NIES) and China’s Institute of Geographical Sciences and Natural Resources Research. Plans for the 2001 fiscal year are to establish a satellite data-receiving center in Ulumchi, China, and set up five ground-based monitoring stations in China. When coupled with existing systems, this will create a monitoring network that covers all of China geographically. Starting in the 2002 fiscal year, the coverage of the MODIS data network will be steadily expanded in the Asia-Pacific region through development of a collaborative research structure with countries that already have MODIS data-receiving centers. Implementation of this integrated monitoring will make it possible to monitor the status of ground cover over time, as well as agricultural production, soil erosion, water resources, and environmental disasters. (2) Environmental Assessments Using Environment-Economy Integrated Models An environment-economy integrated model will be developed to assess the future trends 7 of environmental burdens and resources in the Asia-Pacific region, and various types of indicator data will be produced. In addition, supporting socio-economic and natural environmental data will be linked to the indicator data, and a strategic database will be created for practical use by policy makers for their formulation and evaluation of policies. The following are the main components of this sub-project:     Development of an environment-economy integrated model that can be applied to the entire Asia-Pacific region as well as individual countries Development of an ecosystem assessment model that can predict changes in ecosystems from changes in land use and socio-economic factors Development of indicators for assessing trends in natural resources and the status of implementation of environmental policies Calculation of the status of above indicators and prediction of future trends with the environment-economy integrated model and the ecosystem assessment model, using integrated environmental monitoring data and various types of statistical data Development of a strategic database that links various types of supporting data and environmental indicator data, in order to provide data in a useful form to policy makers and other related parties  The Asia-Pacific Integrated Model (AIM) international research project has been carried out since 1994, involving researchers from China, India, Japan and Korea. It is anticipated that the AIM project will provide a good basis for this sub-project. (3) Research on Innovative Strategy Options The third component is international collaborative research on innovative environmental strategy options aiming for sustainable development in the Asia-Pacific region. This work will be based on findings of the two components described above. It is anticipated that the prospective strategy options will incorporate technological, social and institutional innovations, as well as policy linkages and policy integration, in order to protect the environment without compromising economic growth. Examples of innovation in the environmental sector may include the application of environmentally sound/sustainable advanced technologies and information technologies; promotion of eco-industry and eco-investment; and rediscovery and nurturing of traditional values and ways of life that protect the environment. Examples of policy linkages and integration may include policies related to local air pollution, climate change and acid 8 deposition; the promotion of recycling and eco-industries; and encouragement of natural resource conservation hand-in-hand with agricultural, forestry and fisheries activities. The following are the main components of this sub-project:  Ascertaining the big picture of causes of degradation of natural resources and the environment, as well as underlying causes, related policies, and behavior of the relevant players Classification of related causes, analysis of their correlation, and identification of mutual interactions Integrated assessment of the potential for environmental improvement and economic impacts of useable innovative technologies and policy integration methodologies Clarification of the most effective and feasible approaches, and identification of barriers. Consideration of environmental information management systems that can serve as the basis for environmental strategies. Based on these outcomes, propose tentative environmental strategy options Implementation of pilot projects in a number of model countries, in order to verify the effectiveness and side effects of the proposed options Proposals of innovative strategy options comprising a set of such elements as advanced technologies, information technologies, policy integration, information systems by integrating and generalizing the outcomes of pilot projects      Research for this sub-project will be launched in 2002 with the establishment of an international collaborative research group and selection of a few model countries. The research themes of the strategy options must be determined based on the needs of the Asia-Pacific countries; degradation of natural resources will probably be one of the top themes for consideration. In Japan, the Institute for Global Environmental Strategies will perform the central role in strategy option research. 3.3 Linking the Project to Policy Makers The outcomes of the three main components of international scientific activities described above will be presented to meetings of policy-makers, such as ECO ASIA, in order to support discussions for elaboration and implementation of innovative environmental strategies in the Asia-Pacific region. At the same time, the scientific activities will benefit from policy guidance from the policy makers so that these 9 activities can best reflect the policy makers’ needs. Also, in order to obtain guidance from a broader perspective, the outcomes of discussions may be presented to the Asia-Pacific Eminent Persons Forum on Sustainable Development (EPF), the establishment of which was approved at ECO ASIA 2000. Through such processes, a system of dynamic feedback will be created between the scientific activities and policy makers, ensuring close linkages between them. 3.4 Capacity Building and Information Outreach Participation in the scientific activities in the Project offers research institutes a good opportunity for capacity building at a research level. In addition, outcomes of the research activities are widely disseminated and shared among research institutes and other bodies for their capacity building through APN workshops and other appropriate methods. On the other hand, capacity building of policy makers is also sought through continuous provision of research outcomes to policy makers. An information outreach strategy is needed to provide outcomes of research activities in a timely and effective manner taking into account the specific needs of each stakeholder, e.g. researchers in other sub-projects, policy makers, other interested scientists and the public. To this end, information outreach guidelines for the Project will be developed and a strategic and standardized information outreach system will be established based upon them. 4. Management Framework for Project (1) Each of the three main components of the Project described above will be formulated as an independent international research sub-project through research agreements between governmental and/or non-governmental research institutes. The Research Coordination Committee (tentative name) will be established to promote linkages and coordination between the three scientific activities, and to develop a draft overall research plan to be reviewed at the ECO ASIA Panel. It will include representatives from each research group. (2) ECO ASIA will be the principal audience of the Project to receive reports of these scientific activities, and it will also provide policy guidance to the activities. When 10 required, outcomes will be reported to the Eminent Persons’ Forum and other relevant international environmental forums, and advice will be sought from these forums. (3) The ECO ASIA Panel, to be established under ECO ASIA, will act as the coordination body between the scientific activities and policy makers as one of its functions. This Panel, comprising experts from governments and international organizations as well as representatives of the research groups, will be authorized by ECO ASIA to be responsible for the review and endorsement of overall research plan, and coordination of the Project. (4) Japan’s Ministry of the Environment will, within the budget available, provide the necessary financial support for the research plans approved by the ECO ASIA Panel, provided that the results are reported to ECO ASIA and the research is implemented in compliance with policy guidance from ECO ASIA. (5) The first two sub-projects (integrated environmental monitoring and environmental assessment), will strive to expand the participation of research institutes, in addition to those involved in existing international research groups, through various opportunities such as workshops and APN activities. For the third sub-project (strategy option research), an international collaborative research group will be launched at the earliest possible opportunity, as no such international research group exists at present. The framework of governance and supervision mechanisms of the Project is illustrated below. 11 Integrated environmental monitoring sub-project Environmental assessment sub-project Strategy option research sub-project  Research Coordination Committee Leaders of each sub-project participate as members → Liaison and coordination between each sub-project →Forum for overall planning and coordination between scientific activities    ECO ASIA Panel Governmental experts from Asia-Pacific countries Members of Research Coordination Committee Experts from international organizations and other stakeholders etc. → Review, endorsement, and coordination of the overall project →Forum for coordination between scientific makers activities and policy  ECO ASIA Environmental ministers and international organizations from the Asia-Pacific region → Forum for policy discussion based on outcomes of scientific activities guidance and provide policy 5. Budget Japan’s Ministry of the Environment has secured about 450 million yen (approximately U.S.$3.75 million) for the Project for the 2001 fiscal year. Besides this, in-kind contributions are already being provided by the research institutes participating in the existing international research groups. In addition, expansion of this Project using the GEF is presently being discussed with UNEP and the ADB. (See section 7.2) 12 6. Initial Schedule (Preparatory Phase) 2001 Sept Oct Discuss and formulate draft basic plan for the Project at APIS/MA joint workshop Obtain endorsement at ECO ASIA 2001 to launch the Project, and decide on framework for the basic plan and schedule. Report at WSSD Asia-Pacific regional preparatory meeting in Cambodia Provide input at second, third and fourth WSSD preparatory meetings ECO ASIA Panel decides on implementation plans for scientific activities, and activities are fully launched World Conference on Sustainable Development Nov 2002 Jan – May as early as possible September 7. Cooperation with Related Projects 7.1 Millennium Ecosystem Assessment (MA) The Intergovernmental Panel on Climate Change implements scientific assessments for the UN Framework Convention on Climate Change. In contrast, other conventions such as the Convention on Biodiversity and the Convention to Combat Desertification do not have such a scientific body. The aim of the MA is to improve ecosystem management by providing comprehensive ecosystem information that will be useful for policy making, to international conventions, national governments, non-governmental organizations and the general public. The MA, which was officially launched 5 June 2001, is supposed to implement assessments at the global level – and simultaneously at the regional and local levels – over the next four years. A final report is due in January 2005. 13 (1) Global assessment   Evaluate impacts on ecosystems from the perspectives familiar to the general public, including food, water and health. Establish methodologies for integrated assessments, including determination of characteristics and the status of ecosystem utilization, development of future scenarios and proposals of response options. (2) Assessment at the regional level   Plans are to target about ten areas, including South Africa, Southeast Asia, western China, etc. Utilize integrated assessment methodologies practically at the regional level. Because the Innovation Strategy Project is a research-oriented project while the MA is basically a review-oriented project, they are fundamentally different in nature. In addition, they differ in their geographical coverage and target/priority subjects of concern. On the other hand, the MA aims to assess conditions of ecosystems, future scenarios and policy options, and to provide ecosystem information that meets the needs of policy makers. It gives priority to the use of satellite-based remote sensing to assess the current situation. These aspects represent some of the similarities between both projects. Taking into account the similarities and differences of both projects, cooperation between them would be highly desirable for these reasons:  New knowledge on conditions and trends of natural resources in the Region produced by the Innovation Strategy Project would benefit the MA’s assessment since such data and information for review are quite scarce in the Region; and, Feedback of the outcomes of the MA would facilitate future improvements of the Innovation Strategy Project since it would enable the incorporation of methodologies reflecting global trends and comparisons with other regions  Bearing these basic thoughts in mind, an ecosystem assessment project in western China, one of the regional components of the MA, was launched on 15 June 2001 and is being implemented as a joint project with the above-mentioned integrated environmental monitoring of the Innovation Strategy Project. It is hoped that cooperation would also 14 take place between the Innovation Strategy Project and an ecosystem assessment project in southeast Asia in the future, as appropriate. In ways such as these, by providing satellite and ground data and the corresponding environmental assessments, the Innovation Strategy Project will contribute to the regional assessments of the Millennium Ecosystem Assessment. At the same time, the Innovation Strategy Project will benefit from improved scientific capacity and better synchronization with international developments, by receiving data and methodologies from the Millennium Ecosystem Assessment. By deepening this kind of cooperation, synergies can be expected for both projects. 7.2 Environmental Indicators and Performance Review Project At present UNEP and the ADB are discussing the launch of an Environmental Indicators and Performance Review Project that would make use of the GEF. This project targets the Asia-Pacific region. Its aims would be to (a) improve decision-making through better understanding of environmental conditions, trends and impacts, (b) strengthen national environmental program management and improve public accountability for results, and (c) meet the international demand for environmental information of global importance. Although the details of the project are still under consideration, current discussions cover a framework for policy performance review, including the development of environmental indicators; the estimation of the indicators and creation of databases from environmental data using computer models; the collection/management/utilization of environmental information; and pilot projects for creating such frameworks in model countries. The Innovation Strategy Project and the Environmental Indicators and Performance Review Project both target the Asia-Pacific region and share many similar objectives and contents. Accordingly, UNEP, the ADB and Japan’s Ministry of the Environment are now discussing the possibility of collaboration between the two projects. In order to effectively utilize limited resources, and build the scientific infrastructure indispensable to the formulation of sustainable development policies for Asia-Pacific countries, both projects should be designed and implemented with close collaboration. Therefore , during the feasibility study phase of the Environmental Indicators and Performance Review Project, Japan’s Ministry of the Environment would suggest that possibility of their integration be explored. 15

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