Eco-Efficiency Indicators Measuring Environmental Implications of by absences

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									    Eco-Efficiency Indicators:
Measuring Environmental Implications of
                Economic Performance




              Sangmin Nam, PhD
                  UNESCAP
Eco-Efficiency
 Initially introduced for the business sector to reduce
 environmental impacts arising from production
 processes while improving economic profitability

 “Eco-efficiency is achieved by the delivery of
 competitively-priced goods and services that satisfy
 human needs and bring quality of life, while
 progressively reducing ecological impacts and resource
 intensity throughout the life-cycle to a level at least in
 line with the earth’s estimated carrying capacity.”
 (WBCSD)

 Simply defined as “creating more economic value with
 less environmental impact”
Relevant Concepts (1)
Factor 4
 Doubling wealth and halving resource use at the
 same time, thereby improving efficiency by a factor
 of four. It addresses both consumption and
 production.

Factor 10
 Focuses more on the reduction of resource
 consumption in economy as whole.
 The concept moves beyond Factor Four suggesting
 that developed countries need to reduce resource
 use tenfold in order to truly be sustainable.
Relevant Concepts (2)

 Resource Efficiency: Ratio between useful
 material output and material input. This concept
 is also consistent with the economic concept of
 efficiency.

 Resource Intensity: The amounts of resources
 used for per unit of GDP
      Relevant Concepts (3)
Decoupling
  Absolute decoupling: the environmental pressure does not
  change or decreases while the driving force increases
  Relative decoupling: the growth rate of environmental
  pressure is positive but less than the rate of growth of human
  activity

                                                                                     • OECD explores a set of 31
      Economic/human activity (index)          Economic/human activity (index)       decoupling indicators
                                                                                     •16 indicators (climate change, air
                                                                                     pollution, water quality, waste
                                                                                     disposal, material use and natural
                                                      Environmental impact (index)   resources) relate to the decoupling
100                                     100                                          of environmental pressures from
                                                                                     economic activity
       Environmental impact (index)
                                                                                     •15 indicators focus on four specific
                                                                                     sectors: energy, transport,
                              time                                      time         agriculture and manufacturing.
 a. Absolute decoupling                       b. Relative decoupling
Elements for Eco-efficiency in
the Business Sector

 Reducing the material requirements for goods and
 services
 Reducing the energy intensity of goods and
 services
 Reducing toxic dispersion
 Enhancing material recyclability
 Maximizing sustainable use of renewable resources
 Extending product durability
 Increasing the service intensity of goods and
 services.
Measuring the Performance:
Eco-efficiency Indicators

The application of eco-efficiency indicators in the
business sectors is commonly based on the ratio of
Product or service value/ environmental impact
Most indicators focus on the consumption of energy,
materials and waters and the emission of greenhouse
gases
EEI for the Business Sector:
Cases of Toyota and Toshiba
Eco-efficiency for the
Economy as a Whole

Targeting the improvement of eco-efficiency in the
business sector and, in particular, production process
is good for environmental sustainability of society.

However, it is imperative to address the rebound
effect, implying the progress obtained from
production process of individual products are easily
outstripped by the absolute increase of the social
demand for goods and resources

Thus, it is important to apply the EE concept to
macro-level and economy-wide level.
Different Environmental Impacts of
Economic Development:
An Example of Eco-Efficiency
Level of Consumption Versus Human
Development
Eco-efficiency for the
Economy as a Whole

 Micro-level: As shown by the current cases in the business
 sector, make full use of eco-efficiency concept for reducing the
 environmental impacts of business practices

    The concept and key elements of eco-efficiency are also
    practical to steer the direction of macro and global-level
          actions towards environmental sustainability.

 Macro-level: Implementing policy measures motivating and
 enabling society and in particular key sectors (transport,
 energy, industry, etc) to move towards eco-efficient practices

 Regional/global level: Building a common view on EE,
 sharing knowledge and experience, promoting capacity of
 stakeholders, etc (UNESCAP harnesses the concept of eco-efficiency
 as a key concept of its Green Growth Approach, a regional approach
 for sustainable development)
Governments’ Actions for
Eco-Efficiency

 Set macro-economic eco-efficiency targets and
 conversion criteria for sustainable development

 Integrate policy measures to strengthen eco-efficiency
 (by, for example, eliminating environmentally harmful
 subsidies, internalizing externalities and effecting shifts
 in tax policy)

 Work toward changing international policy rules and
 systems for trade, financial transactions, etc, to support
 higher resource productivity and emissions reduction
Governments’ Actions for
Eco-Efficiency
 China: Resource-Saving Society

  Concept: Conserving resources, improving utilization
  efficiency, sustainable economic growth with less
  resources in the process of production, construction,
  circulation, consumption, etc.

  Actions: Taking measures such as structural
  adjustment, technology improvement, enhanced
  management, further reform, promotion. etc.
Business Sector’s Actions
for Eco-Efficiency
Integrate eco-efficiency into their business
strategy, including their operational, product
innovation and marketing strategies

Report company eco-efficiency and sustainability
performance openly to stakeholders

Support policy measures which reward eco-
efficiency
Civil Society’s Actions for
Eco-Efficiency
 Promote a major psychological and cultural
 shift from ‘having’ towards ‘being’

 Encourage consumers to prefer eco-
 efficient, more sustainable products and
 services

 Support political measures to create the
 framework conditions which reward eco-
 efficiency
   Measuring Economy-wide
       Eco-efficiency
• Many internationally-known indices including ESI and EPI
  do not provide a clear policy guidance.

• For Asia and the Pacific, need to present an easy tool
  clearly showing the direction for economic growth with
  less resource consumption and pollution, a key ingredient
  and prerequisite of sustainable development.

• Also need to provide a yardstick to measure the progress
  in attaining both economic and ecological goals.
ESCAP Eco-Efficiency Indicators
Project: Key Approaches
 Assess the macro-level eco-efficiency of society to
 enhance regional efforts for improving eco-efficiency

 Provide governments with a practical tool to measure
 their performance and outcome in the context of eco-
 efficiency and harness the concept of eco-efficiency for
 socioeconomic policies pertaining to environmental
 sustainability

 Develop a conceptual and methodological framework,
 and a complete set of indicators representing the
 progress and state of economy-wide eco-efficiency.

 Undertake a pilot work of inter-country comparisons
 using a number of selected indicators based on the
 availability of reliable data
A Preliminary Concept of EEI




          The State of Environment in Asia and the Pacific 2005
Applications of EEI for Macro-
level: Case of Basque in Spain

                     Basque Country in Spain (2003)

                     “ To analyze the extent to which
                     the economy has been de-
                     linked from the environment…
                     and to show changes in the
                     pressure exerted on the
                     environment by different
                     economic activities”

                     The application focused on the
                     eco-efficiency of the economy
                     and four sectors (transport,
                     industry, energy and residential
                     sectors)
Applications of EEI for Macro-
level: Case of Japan

                      The Japanese Ministry of
                      Environment: “to maximize
                      the efficiency of resources
                      and energy use and
                      reduce the environmental
                      load per unit of economic
                      activity, the concept of
                      eco-efficiency, expressed
                      in environmental load per
                      unit of economic activity,
                      has been brought forth.”
                           (White Paper 2005)
Relevant Work:
China REPI Index
China Sustainable
Development Strategy Report
2006 presented the Resource                       n
                                                            xij / g j
                                                 ∑w
and Environmental                         1
Performance Index (REPI),         REPIj =              ij
assessing the efficiency of               n       i         X i 0 / G0
resources use in 59 countries,
and 31 provinces in China.
                                 xij / gj : the i th resource consumption
                                 or pollutant discharge per unit of GDP of
The efficiency is measured as    the j th country or region
the ratio between GDP (PPP)
and the consumption of five      Xi0/ G0: the i th resource consumption
                                 or pollutant discharge per unit GDP of
resources, i.e. fresh water,     the world or j th country
primary energy, steel, cement
and common nonferrous
metals.
                                                                      Iran
                                                                      Vietnam
                                                                      Ukraine
                                                                      China
                                                                      Pakistan
                                                                      Kazakhstan
                                                                      Egypt
                                                                      India
                                                                      Bulgaria
                                                                      Philippines
                                                                      Thailand
                                                                      Russian Federation
                                                                      Romania
                                                                      Nigeria
                           REPI(GDP in PPP US$)




                                                                      Malaysia
                                                                      Indonesia
                                                                      Turkey
                                                                      Korea
                                                                      Morocco
                                                                      Kenya
                                                                      Tunisia
                                                                      Bangladesh
                                                                      Chile
                                                                      Saudi Arabia
                                                                      Brazil
                                                                      Argentina
                                                                      Slovenia
                                                                      Poland
                                                                      Czech
                                                                      Slovak
                                                                      Venezuela
China REPI Index




                                                                      Hungary
                                                                      Colombia
                                                                      Croatia
Relevant Work:




                                                                      Mexico
                           REPI(GDP in US$)

                                                                      World Average
                                                                      Greece
                                                                      Singapore
                                                                      Spain
                                                                      Kuwait
                                                                      Belgium
                                                                      Portugal
                                                                      Canada
                                                                      Italy
                                                                      Australia
                                                                      Israel
                                                                      Finland
                                                                      Germany
                                                                      United States
                                                                      New Zealand
                                                                      Japan
                                                                      Austria
                                                                      Sweden
                                                                      France
                                                                      Norway
                                                                      Netherlands
                                                                      United Kingdom
                                                                      Ireland
                                                                      Switzerland
                                                                      Denmark




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ESCAP EEI Project:
Work to date
 EE concept: formulated as a key concept for Green
 Growth approach adopted by the 5th MCED in 2005
 EE concept: A key theme for an ESCAP flagship report
 “the State of the Environment in Asia and the Pacific
 2005”

 EEI project: Held an Expert Group Meeting in Jan 2007
    Review relevant works and indicators
    Develop a common view
    Review potential indicators
 Undertaken extensive review of indicators and indices
 Collected data for the Asia and the Pacific
 Plans to present a preliminary outcome at an expert
 group meeting early 2008.
 Reviewed Indices and
 Indicators
                                           International   Initiatives Describing Issues at the Country Level
                    Sets of Indicators                                             Indices                       Datasets
MDG targets and indicators                                  Environmental Performance Index                      UNSD Common Database
UN DESA Sustainable Development Indicators, 3rd Edition     Environmental Sustainability Index                   UNSD Energy Data (ESCAP ESDD ERS)
ESCAP State of the Environment in AP 2005 Publication       Ecological Footprint                                 UNFCC Data on GHG
UNESCAP Economic and Social Survey                          International REPI index                             ESCAP Statistics Division
GEO 2006 Yearbook indicators                                Happy Planet Index                                   ESCAP Transport and Tourism Division
ADB Indicators for GMS                                      Human Development Index                              UN Environment GEO Data
ESCAP Electric Power in Asia & the Pacific                  Genuine Progress Index                               FAO Aquastat
                                                            Fuel Price Index (GTZ)                               FAO Forestry Data
                                                            World Peace Index                                    WRI Earthtrends Database
                                                                                                                 World Development Indicators
                                                     International Initiatives Describing Cities
                   Sets of Indicators                                            Indices                         Datasets
ASEAN City indicators (to be reviewed)                   City Development Index                                  Global Urban Observatory Data
                                                         Walkability Index (World Bank) (under development)      ADB Cities Data Book
                                                         Public Transport Affordability Index (World Bank)       UITP data on Transport in Cities
                                                         Single Country National initiatives
                     Sets of Indicators                                          Indices                         Datasets
Korean SDI for NSDS                                      Thai Sustainable Development Index
11th 5 year plan PDR China                               Gross Domestic Happiness of Thailand
Indices for Single Country                               Thai Human Development Index (Nat'l & district level)
                                                         Malaysia Quality of Life




                                                                                                                                       us
                                                                                                                                    rio
                                                         Chinese REPI Index (National & regional level)




                                                                                                                                  Va
                                                         Chinese National Plan Targets
                                                         India's National Plan Targets
                                                         Targets for renewable Energy (several countries)
Groups of Eco-efficiency
Indicators
(1) Scope-wise Indicators
   Economy-wide Indicators: Indicators that represent the macro-level
   eco-efficiency of society or economic growth.

   Sector-specific Indicators: Sectors include Energy, Manufacturing,
   Transport, Household consumption, Resource use related Policy, etc

(2) Subject-wise Indicators
   Intensity or Productivity of Resource Use: indicators for energy supply
   and consumption, non-renewable resource use, renewable resource
   use, land use for built environment, etc.

   Intensity of Environmental Pressure: Indicators of GHG emissions,
   waste generation, air and water pollutions, etc.

   Intensity of Socio-environmental Costs: Not necessarily immediate
   indicators representing the scale of environmental pressure or the
   state of environmental quality, but are sufficient to reveal the socio-
   environmental costs. (e.g. traffic congestion costs, environmental
   health costs, environmental restoration costs, etc.)
Potential Indicators
Economy-wide Indicators
  As ESCAP eco-efficiency indicators intend to assess the
  environmental implications of economic performance,
  mostly GDP (or PPP-adjusted) will be used as the
  denominator for calculating the value of each indicator.
  The potential indicators selected for the pilot study are as
  follows.
 Resource Use Intensity                Environmental Impact Intensity

 Energy Intensity of GDP               Carbon Intensity of GDP
 Ecological Footprint of GDP           Carbon Intensity of Electricity (per
 Water Use (withdrawal rate)               kWh)
    Intensity                          Municipal Waste Intensity of GDP
 Total Material Requirements per GDP   Air Pollution (SO2 and NO2) Intensity
 Target Sectors for EEI
The followings are an example of sectoral indicators. A set of
sectoral indicators are not selected yet.

                Resource Use Intensity          Environmental Impact
                                                Intensity
Transport       Energy Intensity of Passenger   Carbon Intensity of Passenger
                Km                              Km
Energy          Share of Renewable Energy       Carbon Intensity of Electricity
(production)
Manufacturing   Water Intensity of GDP          Carbon Intensity of GDP
Industry        Energy Intensity of GDP         Air and Water Pollution per GDP
Commercial      Energy Use per Unit Area        Share of Energy Consumption
Building
Household/      Water consumption per dollar    (Un-recycled) Domestic waste
Residential     of household expenditure        production per dollar of
                Energy consumption per dollar   household expenditure
                of household expenditure
                Durable Consumer Goods per
                Household
Looking Forward

 Continuing a pilot study of inter-country
 comparison using selected indicators
 An Expert Group Meeting early 2008 to
 review the study outcome and finalize the
 selection of the final set of indicators and
 methodological framework
 Invite countries for country-specific
 applications
 Undertake a comprehensive study (depending
 on future situations such as the outcome of
 the pilot study, collaboration with academic
 institutions and funding from donors)

								
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