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Page 1: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial
Page 2: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

ESCAP is the regional development arm of the United Nations and serves as the main economic and social development centre for the United Nations in Asia and the Pacific. Its mandate is to foster cooperation between its 53 members and 9 associate members. ESCAP provides the strategic link between global and country-level programmes and issues. It supports the governments of the region in consolidating regional positions and advocates regional approaches to meeting the region’s unique socio-economic challenges in a globalizing world. The ESCAP office is located in Bangkok, Thailand. Please visit our website at <http://www.unescap.org> for further information.

The grey area of the map represents the members and associate members of ESCAP

Page 3: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

State of the Env�ronment �n As�a and the Pac�f�c 2005

The State of the Environment in Asia and the Pacific 2005 report takes a new look at the implications of the rapid economic growth of the Asian and Pacific region. It argues that governments have made progress in improving environmental performance by developing and implementing environmental governance frameworks and adopting more effective responses to common environmental policy objectives such as pollution control. However, because of the region’s limited environmental carrying capacity and the immense pressure exerted by economic growth and changing consumption and production patterns, environmental degradation continues and environmental sustainability is at increasing risk.

For true environmental sustainability, a long-term perspective, a greater focus on the eco-efficiency of production and consumption activity, investment in natural resources, more effective decision-making on all levels and true measures of sustainability, inter alia, are needed. The report elaborates on the application of “green growth” concepts and approaches as a key requirement for achieving Millennium Development Goals 7 (environmental sustainability) and 1 (poverty reduction).

Synthes�s

ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFICUnited Nations

Page 4: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

��

United Nations publication

Sales No. E.06.II.F.18

ISBN: 92-1-120471-2

Copyright United Nations 2006

All rights reserved

Printed in Thailand

ST/ESCAP/2411

The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

This publication has been issued without formal editing. It follows the United Nations practice in references to countries. Where there are space constraints, some country names have been abbreviated.

Reproduction and dissemination of material in this publication for educational or other non-commercial purposes are authorized without prior written permission from the copyrightholders, provided the source is fully acknowledged.

Reproduction of material in this information product for sale or other commercial purposes including publicity and advertising is prohibited without written permission of the copyrightholders. Applications for such permission, with a statement of purpose and extent of the reproduction, should be addressed to the Director, Environment and Sustainable Development Division, United Nations ESCAP.

Env�ronment and Susta�nable Development D�v�s�onUn�ted Nat�ons Econom�c and Soc�al Comm�ss�on for As�a and the Pac�f�c

United Nations BuildingRajadamnern Nok AvenueBangkok 10200, Thailand<http://www.unescap.org/esd/>

Online version available at <http://www.unescap.org/esd/environment/soe/2005>.

Cover photograph courtesy Pansa Sunavee.

Printed on paper made from fast-growing plantation trees using elemental chlorine-free bleaching processes.

State of the Env�ronment �n As�a and the Pac�f�c 2005

Synthesis

Page 5: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

���

from the real issue – the sustainability of the region’s production and consumption patterns. It builds on assessments of the state of the Asian and the Pacific environment and presents alternatives to achieve the objectives of the Rio Earth Summit as reaffirmed in the Johannesburg Plan of Implementation. It maintains that environmental protection is an urgent priority that could be effectively achieved in two ways – by building eco-efficient economies, and by promoting patterns of economic growth in which environmental protection supports economic growth and vice-versa.

This edition of the State of the Environment in Asia and the Pacific report presents green growth as a unique policy focus and strategy for operationalizing the broad concept of sustainable development in Asia and the Pacific.

For those in government, the private sector, policy research institutions and civil society who are concerned about the sustainable development prospects of Asia and the Pacific, I trust that the information in this report will facilitate collective efforts for realistic and achievable progress.

Kim Hak-Su

United Nations Under-Secretary-General andExecutive SecretaryEconomic and Social Commissionfor Asia and the Pacific

Foreword

“… in the interest of present and future generations, there is a need to shift the development orientation from a ‘grow first, clean up later’ approach to one of green growth …”

Ministerial Declaration on Environment and Development in Asia and the Pacific, 2005

Asia and the Pacific is the most economically dynamic region in the world. In the last decade, growth in industrial and agricultural production in Asian and Pacific developing countries has outstripped global growth rates, and between 1990 and 2004, some 270 million people escaped poverty. However, economic progress has been achieved at a high price. The State of the Environment in Asia and the Pacific 2000 report warned that the pressures exerted by economic growth would continue to degrade the natural environment; the 2005 report confirms these predictions. This report also shows that even though one fifth of the region’s population still lives on less than US$1 per day (PPP-adjusted), the region is already living beyond its environmental carrying capacity.

Why does the goal of sustainable development seem so elusive? In March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial Conference on Environment and Development in Seoul, Republic of Korea. They concluded that economic progress was based on increasingly unsustainable consumption and production patterns and was exerting serious environmental pressure. Delegates stressed that poverty reduction remained a key priority, but at the same time they also acknowledged that adjustments were required for the current patterns of growth to be more environmentally sustainable. “Green growth”, or environmentally sustainable economic growth, was endorsed at the conference as a new policy focus to resolve the dilemma presented by the immediate need for economic growth and poverty reduction on one hand and, on the other, by the long-term need to ensure the protection of natural resources critical to economic development and human survival.

The effective resolution of this dilemma entails action to improve environmental sustainability that supports, and is supported by, economic priorities and social drivers of environmental change. This year’s report emphasizes that focusing only on a limited number of improvements in environmental quality (such as the air quality improvements that have been achieved in some countries) distracts

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About th�s report

The State of the Environment in Asia and the Pacific 2005 (SOE 2005) is the fifth in a series of reports published every five years since 1985. Each report has been eagerly anticipated by governments, civil society organizations, students, educators and others interested in environment and sustainable development issues in Asia and the Pacific. The report covers the member and associate member countries of the United Nations ESCAP that are in the Asia-Pacific region.

Why has th�s report been wr�tten?

The SOE 2005 report has been written to bridge the gap in the dialogue between those who advocate for improved environmental protection and those who advocate for economic growth. It incorporates discussions on issues and indicators that are intended to facilitate more effective communication between the two. With the widening involvement of international, regional, subregional and national organizations, institutions and agencies, environmental reporting and communication have become increasingly sophisticated. The State of the Environment in Asia and the Pacific report series has played an important role in this process. However, the report itself must evolve in order to better support policy development and advocacy by governments and stakeholders. Based on a few critical themes, it now covers environmental pressures in greater detail, links these pressures to the environmental situation and draws attention to concrete measures for redressing the situation.

This SOE report has been shaped by the realities facing the Asian and Pacific region. Sustainable development remains an acknowledged priority, but more than ten years after the Rio Summit, mainstreaming it into developing planning continues to be a major challenge. Economic growth objectives still take precedence over environmental protection or sustainable development objectives. In the current systems of production, consumption and processes of societal change, the achievement of Millennium Development Goal 7 (MDG7) is being sacrificed for that of other development goals, diminishing the long-term prospects for achieving meaningful sustainable development. If the question of the sustainability of development patterns is not addressed head-on, the region will become increasingly vulnerable to environmental and social stresses and will face growing challenges to sustaining its economic progress.

What does the report cover ?

The SOE 2005 report juxtaposes the key sustainable development realities: high rates of economic growth versus declining environmental sustainability and limited environmental carrying capacity versus the burden.

Part I (Chapters 1 and 2) shows that Asia and the Pacific is home to some of the fastest growing economies in the world. This growth is taking place in a region of relatively limited carrying capacity, but is still not sufficient to meet present or future needs. This section distinguishes between action taken to improve environmental performance for pollution control purposes, and action taken to improve the eco-efficiency which is critical for environmental sustainability. The patterns and basis for growth which are placing increasing pressure on environmental sustainability are described, and examples of effective approaches and new initiatives to reduce environmental pressure are provided.

Part II (Chapters 3 and 4) focuses on the relationship between economic growth, consumption and production patterns, resource use and environmental degradation. By showing the widely varying trends in economic growth versus carbon dioxide emissions across the region, and through ecological footprinting, it concludes that there are many paths to economic growth. Eco-efficiency concepts, currently popular when discussing enterprise-level environmental performance, are scaled up to present eco-efficiency as a critical approach to reducing environmental pressure either economy-wide or by sector. It argues that green growth, or environmentally sustainable economic growth, is an urgently needed and achievable pathway for the fast-growing economies of the region, and one which requires greater attention to developing eco-efficient patterns of consumption and production and capitalizing on synergies between environmental protection and economic growth.

Part III (Chapter 5) tracks progress on achieving MDG7 (Environmental sustainability), and concludes that progress on achieving MDG7 has been generally limited.

Part IV (Chapters 6 to 10) identifies the most critical environmental pressures in each subregion and describes relevant intergovernmental environmental initiatives. The review shows that there has been substantial progress in institutional development which significantly addresses the improvement of environmental performances throughout the region. However, identifying improvements in environmental sustainability is considerably more difficult.

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Annexes include selected data and a glossary of terms used in the report. The report is produced in two versions: the Synthesis and the main publication, with electronic versions available at <http://www.unescap.org/esd/environment/soe/2005/>.

How �s the report �ntended to be used?

Government officials and policymakers, agencies, academics and students, the general public and the media will be able to use the report to:

develop an understanding of the key environmental pressures and threats to environmental sustainability, as well as identify indicators for assessing these pressures;

compare the situations of their countries of interest with those in other countries;

develop new policy perspectives on environmental sustainability and see how they can be applied; and

learn from the examples of countries that are successfully improving prospects for sustainability (or otherwise).

What data �s used?

The report, as far as possible, draws on well-established institutional data sources. While the use of institutional data by publications such as this is almost always questioned by governments and researchers, such data are usually derived from national sources and facilitate broad inter-country comparisons.

Who has been �nvolved �n the preparat�on and rev�ew of the report ?

The original draft of this report was prepared in collaboration with the Asian Development Bank (ADB) and the United Nations Environment Programme (UNEP) - traditional partners in preparation of the SOE. At the 5th Ministerial Conference on Environment and Development in Asia and the Pacific held in March 2005, green growth, or environmentally sustainable economic growth was endorsed as a regional policy focus, and ESCAP undertook substantial revision of drafts to reflect this development.

ß

ß

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The generous financial support of the Government of Japan - a long-time supporter of the Asia-Pacific SOE report series, together with the contributions of our partners, ADB and UNEP, the staff involved, national SOE focal points, as well as numerous others involved in the review and preparation of the report, are duly acknowledged.

Rae Kwon Chung

DirectorEnvironment and Sustainable Development Division, ESCAP

Page 8: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

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Acronyms and abbrev�at�ons

ADB Asian Development Bank

ASEAN Association of Southeast Asian Nations

CER certified emission reduction

CFC chlorofluorocarbon

CDM clean development mechanism

CIS Commonwealth of Independent States

CNY China Yuan Renminbi

ECE Economic Commission for Europe

EDGAR Emission Database for Global Atmospheric Research

ESCAP Economic and Social Commission for Asia and the Pacific

FAO Food and Agriculture Organization of the United Nations

FDI foreign direct investment

GHG greenhouse gas

GDP gross domestic product

HDI Human Development Index

IEA International Energy Agency

IMF International Monetary Fund

IPCC Intergovernmental Panel on Climate Change

LDC least developed country

MDG Millennium Development Goal

MCED Ministerial Conference on Environment and Development

ODP ozone depleting potential

ODS ozone depleting substances

OECD Organisation for Economic Co-operation and Development

OFDA/CRED The Office of United States Foreign Disaster Assistance, Center for Research on the Epidemiology of Disasters

PET polyethylene terephthalate

PPP purchasing power parity

SAARC South Asian Association for Regional Cooperation

SIDS small island developing States

SOE State of the Environment

UNDP United Nations Development Programme

UNEP United Nations Environment Programme

USSR Union of Soviet Socialist Republics

WHO World Health Organization

Chem�cal formulae

CO2 carbon dioxide

NO2 nitrogen dioxide

SO2 sulfur dioxide

Un�t abbrev�at�ons

km kilometre

kg kilogram

m3 cubic metre

ha hectare

toe tons of oil equivalent

Page 9: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial
Page 10: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

Foreword iii

Aboutthisreport iv

WhathavebeenthemaindriversofenvironmentalchangeinAsiaandthePacific? 1

Fast economic growth is the most important driver of environmental change in Asia and the Pacific. GDP growth in this region is outstripping world GDP growth, led by developing countries. 1

Despite the rapid economic growth, there are still many unmet needs. Underdeveloped infrastructure is a key development obstacle and one of the most significant poverty traps. 2

Cantheregion’snaturalresourceendowmentcontinuetosupportthecurrenteconomicgrowthpatterns? 2

Ecological footprinting shows that the Asian and Pacific region is already living above its ‘environmental means’. Despite its relatively low-impact consumption patterns, its carrying capacity is probably already being exceeded. There are increasing signs that environmental sustainability is at risk. 2

Inthecontextofrapideconomicgrowth,whatarethekeythreatstoenvironmentalsustainability? 4

The focus on improving environmental performance may be distracting attention from the declining environmental sustainability of economic growth patterns. 4

The signs of unsustainable growth – high future infrastructure costs, an increasing tendency to produce waste and continuing declines in natural capital. 4

The growth of pollution and resource-intensive industry 7

The intensification of agriculture 8

Urbanization and the spread of the global consumer society 10

Increased demand for raw materials, energy and water 12

Increased vulnerability to climate change and natural disasters; however, climate change mitigation action is becoming more and more compatible with energy security and economic objectives. 14

Contents

Page 11: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

Isdecliningenvironmentalsustainabilityanecessaryconsequenceofgrowth? 17

Economic growth and environmental pressure can be de-linked by promoting more eco-efficient growth patterns. As economies grow, more eco-efficient production may be observed, but greater eco-efficiency of consumption is more difficult to achieve. 17

HowcansustainabledevelopmentbeachievedinAsiaandthePacific? 18

Green growth presents a new policy focus to institutionalize more environmentally sustainable economic growth patterns. Adoption of greener growth patterns is more urgent and relevant in the context of fast-growing Asian and Pacific economies than anywhere else in the world. 18

HowistheregionperformingwithregardtoitsinternationalcommitmentstoMillenniumDevelopmentGoal7? 20

Target 9. Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources 21

Target 10. Halve, by 2015, the proportion of people without sustainable access to safe drinking water and sanitation 23

Target 11. By 2020, to have achieved a significant improvement in the lives of at least 100 million slum dwellers 23

Whatarethekeydeterminantsofsustainabledevelopmentineachsubregion? 24

Central Asia and the Caucasus 24

North-East Asia 25

The Pacific 26

South and South-West Asia 28

South-East Asia 29

Page 12: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial
Page 13: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

60

70

80

90

100

110

120

130

140

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

World ESCAP countries Developing ESCAP countries

90

100

110

120

130

140

150

160

170

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

World ESCAP countries Developing ESCAP countries

Industr�al product�on, manufactur�ng (�ndex ,�995 = �00)

What have been the ma�n dr�vers of env�ronmental change �n As�a and the Pacific?

The Asia and the Pacific regional economy continued to grow at a high rate during 2000 to 2005. Economic growth of Asia and the Pacific led all global regions in 2004, the year in which the fastest global growth for almost three decades was recorded. In 2005, China overtook the United Kingdom to become the world’s fourth-largest economy.

The rapid pace of economic growth has been fuelled by the region’s rising status as a global production centre. Industrial production increased by 38 per cent in ESCAP developing countries and 23 per cent globally from 1995 to 2002. Regional agricultural production increased by over 60 per cent from 1990 to 2002. Commodities produced for export contribute to pollution and other environmental pressures in the producing countries; this represents one of the most important drivers of environmental change in the region.

Regional developing country manufacturing activity increased by 40 per cent from 1995 to 2002 and is the basis for expanding trade. Intra-regional trade is becoming more important. The value of exports from regional developing countries alone (with the notable exception of Pacific island countries) more than doubled during 2001 to 2004; imports from within the region made up 50 per cent of all imports in 2002.

Six of the 17 fastest growing Asian and Pacific countries are least developed countries (LDCs). This includes all of the regional LDCs, with the exception of the Maldives, Nepal and the Pacific LDCs.

Rapid economic growth is fuelled by the demands of an expanding global and regional consumer base. Household consumption expenditure has been growing at higher than global rates in many countries of the region — South-East Asian countries and China hold the top five places regionally in terms of expanding household consumption expenditure from 1990 to 2002. However, in parts of Central Asia, the Caucasus, and the Russian Federation, household expenditure has contracted from 1990 levels.

Economic growth for poverty reduction is still an overriding concern, and this emphasis is more than justified.

1.

2.

3.

4.

5.

6.

Source: ESCAP (2005). Statistical Yearbook for Asia and the Pacific, 2003, United Nations publication Sales No. 04.II.F.1 (New York, United Nations).

Agr�cultural product�on (�ndex, �989-�990 = �00)

Ü Chapter 1

Fast economic growth is the most important driver of environmental change in Asia and the Pacific. GDP growth in this region is outstripping world GDP growth, led by developing countries.

Page 14: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

2

Nearly 670 million people are still living on less than US$1 a day (PPP-adjusted),� and over 500 million people are undernourished across the region. Southern and South-East Asia face the most critical challenges. Inadequate health services which are often not accessible to all groups in society, are responsible for premature loss of life, continued vulnerability to the threat of communicable disease and among the highest rates of maternal deaths in the world.

Natural disasters cause major loss of life and damage to infrastructure and impact on future growth prospects. Nearly 80 per cent of all disasters globally occur in Asia and the Pacific, but insufficient investment has been made to prepare for and mitigate such disasters.

One of the most important poverty traps is underdeveloped housing, energy, water, sanitation and transportation infrastructure. Some 665 million people are without access to improved drinking water and approximately 1.9 billion have no access to improved sanitation.2 The ADB estimates that the investment required to halve the proportion of people without sustainable access to improved water and sanitation would be US$8 billion annually, and to provide access to all the unserved people of the region, around twice as much, until 2015.3 In many urban centres, between 40 and 80 per cent of residents live in poverty, with inadequate access to shelter, water, sanitation and energy services. The region’s per capita energy consumption is far lower than the global average.

Lack of access to energy, sanitation and water in both urban and rural areas results in ill-health, mortality, hardship and incurs a high opportunity cost. The members of a rural north Indian family together can walk a distance roughly equivalent to the distance between New Delhi and Hanoi in one year, looking for fuel and water,4 with most of this burden falling on women and children.

Can the reg�on’s natural resource endowment cont�nue to support the current econom�c growth patterns?

The ability of the region’s natural resource base to sustain human activity indefinitely, i.e. its carrying capacity is determined by two factors: its natural resource endowment and the pressure placed on it by human activity. “Ecological deficits” in many countries across the region (as estimated using the ecological footprinting methodology)5 show quantitatively that many are over-exploiting their own natural resource base, and/or through trade, are using the natural resource base of other countries to support their consumption patterns and economic growth.

Overall, Asia and the Pacific is less generously endowed with natural resources than some other parts of the world. At the same time, these resources must be shared among a much higher number of people. The regional population density is 1 1/2 times the global average and freshwater available per capita is the lowest of global regions. The biologically productive area per capita is less than 60 per cent of the global average and the arable land per capita is less than 80 per cent of the global average.6

High poverty levels in some countries mean that the actual regional consumption pressures are smaller, per person, than the global average. Nonetheless, the biologically productive area required to support current consumption levels already exceeds the available area, per person, in at least 18 countries of the region.7 Because the natural resource endowment remains relatively constant or declines under environmental pressure, the size of the human population that can be sustainably supported based on the current consumption patterns and prevailing technologies, is decreasing.

7.

8.

9.

10.

11.

12.

Ü Chapter 1

Ü Chapter 1

Despite the rapid economic growth, there are still many

unmet needs. Underdeveloped

infrastructure is a key development obstacle

and one of the most significant poverty

traps.

Ecological footprinting shows that despite its relatively

low-impact consumption patterns, the Asian and

Pacific region is already living above its ‘environmental

means’. Despite its relatively low-impact consumption

patterns, its carrying capacity is probably already

being exceeded. There are increasing signs that

environmental sustainability is at risk.

Page 15: ESCAP is the regional development arm of the United ... 2005 Synthesis.pdfIn March 2005, representatives of 52 governments of Asia and the Pacific convened at the Fifth Ministerial

3

Growing inter-regional trade means that the environmental burdens are being redistributed within the region. However, many ESCAP developing countries which are shouldering the production-related burden have a limited capacity to manage the adverse impacts of their expanding role in the global economy, and are consequently subject to mounting environmental pressure on both the national and global natural resource base.

13.

Source: Global Footprint Network (2006). Data downloaded on 14 March 2006 from <http://www.footprintnetwork.org>.Notes: The ecological footprint is a measure of how much productive land and water is required to produce all the resources consumed

and to absorb all the waste generated per year, using prevailing technology. The term “biocapacity” refers to the total biological production capacity per year of a given area; the ecological deficit or surplus refers to the difference between the ecological footprint and the biological capacity (or biocapacity) of the space available to the population being considered. See the website of the Global Footprint Network, available at <http://www.footprintnetwork.org/>.

Per cap�ta ecolog�cal footpr�nt (2002) Per cap�ta b�ocapac�ty (2002)

Rep. of KoreaJapan

Islamic Rep. of IranUzbekistan

ChinaDPR Korea

Sri LankaTurkey

ASIA-PACIFICArmenia

IndiaPhilippines

ThailandWORLD

AzerbaijanPakistan

NON-ASIA-PACIFICBangladesh

NepalTajikistan

IndonesiaViet Nam

KyrgyzstanAfghanistanCambodia

TurkmenistanMyanmar

GeorgiaLao PDR

KazakhstanPapua N. G.

MalaysiaRussian Federation

AustraliaMongolia

New Zealand

AfghanistanBangladesh

PakistanIndia

Sri LankaNepal

TajikistanArmenia

PhilippinesRep. of Korea

CambodiaDPR Korea

ChinaIslamic Rep.of Iran

JapanUzbekistan

Viet NamASIA-PACIFIC

IndonesiaThailand

AzerbaijanGeorgia

MyanmarKyrgyzstan

Lao PDRTurkey

WORLDPapua N. GuineaNON-ASIA-PACIFIC

MalaysiaTurkmenistan

KazakhstanRussian Federation

AustraliaMongolia

New Zealand

AustraliaNew Zealand

Russian FederationJapan

Rep. of KoreaKazakhstan

NON-ASIA-PACIFICTurkmenistan

MongoliaMalaysia

Islamic Rep. of IranWORLD

TurkeyUzbekistan

ChinaAzerbaijanDPR Korea

Papua N. GuineaASIA-PACIFIC

ThailandKyrgyzstanIndonesia

PhilippinesArmeniaArmenia

MyanmarSri LankaLao PDR

Viet NamGeorgia

IndiaTajikistanPakistan

NepalCambodia

BangladeshAfghanistan

Per capita ecological deficits and surpluses (2002)

Global hectares per person Global hectares per person Global hectares per person

Rep. of KoreaJapan

Islamic Rep. of IranUzbekistan

ChinaDPR Korea

Sri LankaTurkey

ASIA-PACIFICArmenia

IndiaPhilippines

ThailandWORLD

AzerbaijanPakistan

NON-ASIA-PACIFICBangladesh

NepalTajikistan

IndonesiaViet Nam

KyrgyzstanAfghanistanCambodia

TurkmenistanMyanmar

GeorgiaLao PDR

KazakhstanPapua N. G.

MalaysiaRussian Federation

AustraliaMongolia

New Zealand

AfghanistanBangladesh

PakistanIndia

Sri LankaNepal

TajikistanArmenia

PhilippinesRep. of Korea

CambodiaDPR Korea

ChinaIslamic Rep.of Iran

JapanUzbekistan

Viet NamASIA-PACIFIC

IndonesiaThailand

AzerbaijanGeorgia

MyanmarKyrgyzstan

Lao PDRTurkey

WORLDPapua N. GuineaNON-ASIA-PACIFIC

MalaysiaTurkmenistan

KazakhstanRussian Federation

AustraliaMongolia

New Zealand

AustraliaNew Zealand

Russian FederationJapan

Rep. of KoreaKazakhstan

NON-ASIA-PACIFICTurkmenistan

MongoliaMalaysia

Islamic Rep. of IranWORLD

TurkeyUzbekistan

ChinaAzerbaijanDPR Korea

Papua N. GuineaASIA-PACIFIC

ThailandKyrgyzstanIndonesia

PhilippinesArmeniaArmenia

MyanmarSri LankaLao PDR

Viet NamGeorgia

IndiaTajikistanPakistan

NepalCambodia

BangladeshAfghanistan

Rep. of KoreaJapan

Islamic Rep. of IranUzbekistan

ChinaDPR Korea

Sri LankaTurkey

ASIA-PACIFICArmenia

IndiaPhilippines

ThailandWORLD

AzerbaijanPakistan

NON-ASIA-PACIFICBangladesh

NepalTajikistan

IndonesiaViet Nam

KyrgyzstanAfghanistanCambodia

TurkmenistanMyanmar

GeorgiaLao PDR

KazakhstanPapua N. G.

MalaysiaRussian Federation

AustraliaMongolia

New Zealand

AfghanistanBangladesh

PakistanIndia

Sri LankaNepal

TajikistanArmenia

PhilippinesRep. of Korea

CambodiaDPR Korea

ChinaIslamic Rep.of Iran

JapanUzbekistan

Viet NamASIA-PACIFIC

IndonesiaThailand

AzerbaijanGeorgia

MyanmarKyrgyzstan

Lao PDRTurkey

WORLDPapua N. GuineaNON-ASIA-PACIFIC

MalaysiaTurkmenistan

KazakhstanRussian Federation

AustraliaMongolia

New Zealand

AustraliaNew Zealand

Russian FederationJapan

Rep. of KoreaKazakhstan

NON-ASIA-PACIFICTurkmenistan

MongoliaMalaysia

Islamic Rep. of IranWORLD

TurkeyUzbekistan

ChinaAzerbaijanDPR Korea

Papua N. GuineaASIA-PACIFIC

ThailandKyrgyzstanIndonesia

PhilippinesArmeniaArmenia

MyanmarSri LankaLao PDR

Viet NamGeorgia

IndiaTajikistanPakistan

NepalCambodia

BangladeshAfghanistan

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4

In the context of rap�d econom�c growth, what are the key threats to env�ronmental susta�nab�l�ty?

Government action has resulted in strengthened legislation and institutions that, in most countries have reduced the use of ozone-depleting substances, slowed losses of forest cover and reduced air pollution, in particular with respect to SO2 concentrations.8 These developments reflect significant improvements in environmental performance, particularly with respect to pollution control.

However, action taken to improve eco-efficiency of the production and consumption patterns which ultimately determine the levels and nature of resource use and waste production, are less evident. This may well be explained by the current focus on short-term action to improve environmental performance rather than long-term plans and policies to improve environmental sustainability.

Therefore, long-term prospects continue to be diminished by the rising environmental pressures resulting from expanded consumption and production activity and resource exploitation. The net result is declining environmental sustainability.

The signs of unsustainable growth – high future infrastructure costs, an increasing tendency to produce waste and continuing declines in natural capital.

Current �nfrastructure development �s lock�ng �n future consumpt�on patterns, and by consequence, future levels of env�ronmental pressure.

Urban settlements and national transportation infrastructure are being expanded without giving due attention to the implications for energy and water use. A few countries are starting to exploit solar and wind energy but centralized, fossil-fuel based electricity infrastructure continues to expand. In most places, expansion of access to sanitation services is based on developed-country models of sanitation and water service development, implying significant future additional water demand. Urban planning does not usually provide for water capture or wastewater systems as used in urban development planning in Singapore.

The hidden environmental and economic costs of these unsustainable patterns of infrastructure development are substantial; pollution and the additional costs of physical infrastructure, as well as high future demand for energy and water, are important cost burdens that are not usually factored into cost-benefit analyses. In the case of the continued delivery of energy services based on oil, hidden infrastructure costs include the finances required for oil exploration, extraction and processing, infrastructure for energy transformation, the cost of water for cooling in thermo electric plants, the costs of transmission lines and infrastructure for transportation of oil, the costs of storage and services and infrastructure associated with end-use and the costs of pollution control.

The health, environmental and economic costs associated with air pollution arising from energy use are one example of the cost implications of infrastructure choices and urban development; a typical megacity (with a population greater than 10 million) could expect these costs to range between US$100 and $300 million per year.

14.

15.

16.

17.

18.

19.

Ü Chapter 2

The focus on improving environmental

performance (mainly for pollution control)

may be distracting attention from the

declining environmental sustainability of economic

growth patterns.

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5

Soc�et�es are develop�ng �n a fash�on that may �ncreas�ngly be geared towards produc�ng waste and pollut�on.

Waste and pollution is a growing problem across the region. Municipal waste burdens are growing as incomes rise. Acid rain persists in East Asia, wastes from mineral extraction are accumulating in Central Asia and threaten water supplies, and climate change processes are becoming more evident as the amount of carbon dioxide in the atmosphere (characterized as ‘humankind’s most weighty waste product’) rises faster than can be absorbed by growing biomass and other carbon dioxide sinks. Traditional and cultural attitudes to consumption and waste are rapidly changing as some societies and youth cultures enter the global consumption mainstream and urban centres expand.

Policies, legislation and programmes to support recycling remain the first-line response of most countries to the problem of waste. Informal recycling activity fills the gap where no formal recycling programmes exist. Some countries, including Sri Lanka, have initiated waste recovery and conversion projects. Far fewer countries have initiated waste minimization and de-materialization. Rising demand and prices for virgin raw material have supported the development of international trade in recyclable materials, i.e. minerals and paper in particular, with China acting as a centre of gravity for this trade. The true costs of waste disposal are not usually reflected in the policies of developing countries; there is, therefore, little economic incentive to reduce waste. Waste-producing consumption patterns are therefore in extreme danger of becoming entrenched.

Natural cap�tal �s decl�n�ng.

Paradoxically, the push for economic growth based on unsustainable patterns of resource use may be creating another poverty trap, that of declining environmental sustainability. Natural capital consists of the natural resource endowment that provides a flow of environmental goods and services, including renewable and non-renewable resources, absorption of waste and cultural and spiritual values. Renewable resources are under pressure in the region; this is reflected in the ever larger areas of land in various stages of degradation, the shrinking natural forests, the increasingly vulnerable coastal ecosystems and the declining fisheries.

Land degradation is still a critical issue affecting agricultural livelihoods, notably in the agricultural region of the Aral Sea Basin, and in South and South-West Asia. In South-East Asia, the majority of agricultural lands are severely affected by wind and water erosion, as well as by chemical and physical deterioration.

Natural forests are being lost at high rates in South-East and South and South-West Asia and some Pacific islands. At the same time, plantation forests continue to advance dramatically. Plantation forests in the ESCAP region make up more than 72 per cent of the global planted forests, almost 10 per cent of the total forest area or some five times the area of New Zealand. Overall forest cover data shows that losses are slowing, and forest cover, in some cases is even expanding. However, this is not enough to compensate for the significant decline in natural capital that the loss of natural forest represents, as defined in services related to biodiversity habitat and non-wood forest product provision, watershed protection and cultural and spiritual support. These environmental goods and services often cannot be replaced by plantation forests, which are also more vulnerable to climate change and disease.

Water extraction rates are unsustainably high in at least 16 countries of the region.9 Poor water quality makes meeting water resource needs even more challenging, and often coincides with low water availability. The vulnerability of certain countries is further exacerbated by high dependency on water resources from outside the country. The melting of glaciers linked to climate change threaten to reduce flows to the glacier-fed Ganges, Indus, Brahmaputra, Mekong, Thanlwin, Yangtze and Yellow rivers, as well as the Amu Darya and Syr Darya rivers. India, the Islamic Republic of Iran, Uzbekistan and Pakistan are among the most vulnerable countries.

20.

21.

22.

23.

24.

25.

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6

In China, India and Thailand, and possibly other countries, water shortages have limited industrial production in localized areas and to varying degrees. Water shortages in China have been responsible for an estimated annual loss of some US$28 billion in industrial output in recent years.�0 Drought also affected more than 600 million people across the region between 1995 and 2004.

Efforts to reduce pollution from point sources such as industrial plants, are being rewarded in many cases. On the other hand, reducing water pollution from non-point sources such as agricultural production and domestic sewerage (where access to sanitation and wastewater treatment facilities are inadequate), and groundwater-contaminating sources such as sewerage systems and landfills is increasingly problematic as environmental pressures grow. Poor water quality continues to hinder the ability of countries to meet rising demand for water.

Groundwater, seen as the last water reserve in places, is at particular risk. The exploitation of groundwater resources is leading to rapid lowering of water tables across China, India, the Islamic Republic of Iran, Pakistan and the Philippines; and diminished grain harvests are reported in India and China. Poor communities depending on shallow drinking water wells and urban centres such as Jakarta that rely on groundwater are paying the price of too-rapid extraction. Surveys of groundwater used in industrial zones in India and used as a source of urban water in China show that the majority of sources are contaminated or unfit for drinking.�� Contamination of groundwater by naturally occurring arsenic has been confirmed in Afghanistan, Bangladesh, India, Nepal, Myanmar, China, Viet Nam, Cambodia, Thailand, Pakistan and the Is lamic Republ ic of I ran. Estimates from published cases suggest that around 200 million people may be exposed to health risks associated with arsenic-tainted drinking water on a daily basis. Another 129 million people in India and China may be at risk of serious dental and skeletal deformities from drinking water with high levels of fluoride. While arsenic and fluoride are naturally occurring contaminants, the risk of exposure to these contaminants increases as the region becomes more dependent on its groundwater resources.

The region is a significant contributor to the global decline of biodiversity resources. Several countries of the region are identi f iable as having particularly large numbers of threatened species; loss of natural forest across South and South-East Asia is linked to high numbers of threatened species,

26.

27.

28.

29.Sources: FAO AQUASTAT online database, accessed on 18 August 2005 from <http://

www.fao.org/ag/agl/aglw/aquastat/main/index.stm>; Esty, Daniel C., Mark Levy, Tanja Srebotnjak and Alexander de Sherbnin (2005). Environmental Sustainability Index: Benchmarking National Environmental Stewardship (New Haven, Yale Center for Environmental Law and Policy). Water quality index based on dissolved oxygen concentrations (1993-2002), electrical conductivity (1994-2002) and phosphorus concentrations (1994-2003). The lower the indicator value, the lower the assessment of overall freshwater quality. Based on data for the latest year available in the time period indicated.

Australia

Bhutan

Cambodia

GeorgiaIndonesia

Japan

Lao PDR

Malaysia

Mongolia

Pakistan Rep. of KoreaArmeniaIndia Kyrgyzstan

Philippines

Russian Federation

Sri Lanka

Turkey

Viet Nam

0

10000

20000

30000

40000

50000

60000

70000

-2 -1.5 -1 -0.5 0 0.5 1 1.5

Water quality index

Wa

tera

vaila

bili

typ

erc

ap

ita(m

3p

erc

ap

i ta,p

ery

ea

r)

Azerbaijan

Bangladesh

China

Islamic Rep. of Iran

Kazakhstan

Nepal

Tajikistan

Thailand

Turkmenistan

Uzbekistan

Water ava�lab�l�ty vs. water qual�ty

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7

particularly birds. �2,�3 The Pacific Ocean islands of Micronesia, Fiji, and most of Polynesia have a significantly high proportion of threatened species. Marine species are particularly vulnerable in the northern Pacific Ocean, eastern Indian Ocean and south-west and west-central Pacific.�4 The major threats to biodiversity loss are: habitat destruction, degradation and fragmentation across the region; trade in endangered species in South-East Asia; over-exploitation of marine species; and the introduction of alien and invasive species. Protected area coverage in South-Central Asia, South-East Asia and Oceania still fall short of the 10 per cent global target.�5

The area of mangrove forest lost in the region from 1990 to 2000 represents approximately 60 per cent of the global loss, mainly from South-East Asia.�6 Destruction of coastal ecosystems is responsible for further declines in fish stocks and negative impacts on the livelihoods of coastal communities.

Approximately 60 per cent of the region’s coral reefs are estimated to be at risk.�7 The reefs of South-East Asia, the most species diverse in the world, are also among the most threatened with more than 80 per cent at risk. Coral bleaching events linked to climate change were reported in the late 1990s and have recurred in early 2006.

Mounting environmental pressures are the result of unsustainable patterns of production and consumption linked to four major trends: the growth of pollution and resource-intensive industry, the intensification of agriculture, urbanization and changing consumption patterns and a heightening demand for raw materials, energy and water.

The growth of pollution and resource-intensive industry

Fast-growing developing countries in the region are shouldering an increasingly greater share of regional and global environmental burdens. Regional industrial production expansion is outstripping global growth, and several highly polluting industries are growing more rapidly in regional developing countries than in regional developed countries.

The “policy divide” that often separates government institutions responsible for economic planning and industry, and those responsible for environmental protection is reflected in the limited attention industrial development planning has paid to the impact of a country’s industrial subsector composition on its environmental outlook. This impact is considerable.

Some of the fastest growing industries in Asian and Pacific developing countries are, in the absence of high corporate environmental performance and effective national pollution control policy, likely to produce relatively highly toxic waste.�8 There is insufficient evidence that industrial parks have lived up to their potential of minimizing pollution by providing cost-effective waste treatment and pollution control services. Hazardous waste production, management and trade is also a growing challenge.

Rapidly expanding industries also include industries which are known to be highly energy and water-intensive. Fast-growing energy intensive industrial subsectors include the production of transport equipment, crude steel, chemicals, petroleum and rubber and plastic products. The production of transport equipment involves relatively water-intensive processes.

Water is an increasingly scarce commodity in many countries, but little, if any, attention has been paid to the intensity of water use, or water productivity in the industrial sector. Viet Nam, Georgia, Mongolia and water-stressed Central Asian countries (with the exception of Turkmenistan), have adopted patterns of industrial water use in which they use more water to produce one dollar of GDP from industry than most other countries of the region.

30.

31.

32.

33.

34.

35.

36.

37.

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8

Cleaner production initiatives, along with corporate rating and disclosure programmes and the application of economic instruments have been highly successful in reducing pollution in localized areas. However, making the patterns of industrial development more environmentally sustainable requires industrial sector planning and investment promotion that takes into account the intensities of pollution and resource use, as well as risks to human health and natural-resource based livelihoods, especially in countries with limited capacity for pollution monitoring and control, and limited natural resource endowments. Countries with, for example, limited water resources and pollution control capacity, can ill-afford to develop industrial sectors with high risks of water pollution, such as the food or chemicals industry.

In most countries, the amount of SO2 emitted and industrial organic water pollution discharged for each dollar of GDP earned in 2000 was lower than in 1990. But these reductions in pollution intensity were not enough to reduce the total emissions of these pollutants. A few countries have made significant progress in reducing pollution intensities, while some countries are increasing the amount of pollution produced for every dollar of GDP earned. Central Asian countries are among the countries with the highest pollution intensities of the region.

Because of the phenomenal growth in industrial production, the impact of foreign direct investment (FDI), in environmental terms has largely been negative. However, developing countries may use the opportunities presented by growing demand for pr imary products, changing incentives for investment in the region relating to growth in regional consumer markets, and the increasing willingness of FDI-or ig inat ing countr ies to ass i s t developing countr ies to avoid negative environmental impacts, to negotiate for conditions that maximize the positive environmental impacts of FDI inflows.

The intensification of agriculture

Regional agricultural production increased by some 62 per cent from 1990 to 2002;�9 during this time global agricultural production increased by only 27 per cent. While the pace of agricultural production growth has slowed since 1999 and the region is a net importer of agricultural products, trade in agricultural products, both imports and exports, is expanding.

Growth in production and expanding trade has contributed significantly to increasing physical and economic access to food, and therefore improving food security. Per capita food availability has increased and there have been overall reductions in the numbers of undernourished. However, there are still some 500 million undernourished people in the region. In some countries, the pace of hunger reduction has slowed with some

38.

39.

40.

41.

42.

Source: ESCAP (2005). Statistical Yearbook for Asia and the Pacific, 2003, United Nations publication Sales No. 04.II.F.1 (New York, United Nations).

Wood & wood products

Textiles

Food, beverages & tobacco Cotton woven fabrics

Non-metallic mineral products Fabricated metal products

CigarettesFresh beef & veal

Raw sugarRefined sugar

Basic metalsFresh mutton & lamb

Fresh porkCotton yarn

Cement

Transport equipment Crude steel, ingots

Beer

Office, computing, radio, television& other electrical equipment

Chemicals, petroleum, rubber& plastic products

Paper, printing, publishing& recording media

Wearing apparel, leather& footwear

Wool yarn

-60 -40 -20 0 20 40 60 80

Asia-Pacific developing countries Asia-Pacific

120 140100

Percentage change �n �ndustr�al product�on by subsector (�995-200�)

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9

countries showing increases in the number of undernourished. Agricultural production patterns are also changing in response to changing diets and increasing demand for meats, fish and dairy products, which also multiplies the consumption of grain used as feed and water. Agricultural commodities such as jute, fibers, palm oil and rubber also support strong agricultural production growth.

Dramatic increases in agricultural production have been achieved by the intensification of agro-chemical and water use; the expansion of arable and permanent cropland region-wide has been relatively limited except in some small island developing states such as the Federated States of Micronesia. The consumption of mineral fertilizers per hectare of agricultural land in the region has increased by some 15 per cent, in contrast to a decline in the rest of the world during 1991-2001. In 2001 the region used twice as much mineral fertilizer per hectare of agricultural land as the rest of the world.20 Some countries are now beginning to cut back on using large quantities of fertilizers. In at least 31 countries of the region, more than 60 per cent of water withdrawals are for agriculture, with more than 90 per cent of irrigated area using inefficient surface irrigation systems which have expanded faster in the region than anywhere else. Where improperly managed, irrigation systems are linked to land degradation, eutrophication of freshwater bodies, soil erosion, mosquito-borne diseases and increased water demand.

43.

Tajikistan

Kazakhstan

Vanuatu

DPR Korea

Japan

Mongolia

Bhutan

Fiji

Tonga

Samoa

Nauru

Australia

Sri Lanka

Papua N. Guinea

Indonesia

Thailand

WORLD

New Zealand

India

Malaysia

Rep. of Korea

Kiribati

Bangladesh

Nepal

Philippines

Cambodia

Pakistan

Maldives

Solomon Islands

Islamic Rep. of Iran

Myanmar

Lao PDR

China

Viet Nam

Uzbekistan

Marshall Islands

-100 -50 0 50 100

Percentage change

Agr�cultural product�on change (�989-9� to 2002)

Source: FAO (2004). Selected Indicators of Food and Agriculture Development in Asia-Pacific Region: 1993-2003 (Bangkok, FAO Regional Office for Asia and the Pacific).

0

50

100

150

200

250

300

350

400

Rep.

of K

orea

Japa

nC

hina

New

Zea

land

Vie

t Nam

Bang

lade

shM

alay

sia

Uzbe

kist

anSr

i Lan

kaPa

kist

anD

PR K

orea

Indi

aIn

done

siaTh

aila

nd

Islam

ic R

ep. o

f Ira

nPh

ilippi

nes

Aus

tralia Fij

iSa

moa

Nep

alTa

jikist

an

Papu

a N

ew G

uine

aM

yanm

arLa

o PD

RM

ongo

lia

Kaza

khst

anC

ambo

dia

Bhut

anM

aldi

ves

Kg m

ine

ral f

ert

ilize

r pe

r ha

of a

gric

ultu

ral l

an

d

-100

-80

-60

-40

-20

0

20

40

60

80

100

120%

ch

ang

e

Fertilizer use intensity(2002)

Change in fertilizer useintensity (1992-2002)

M�neral fert�l�zer use �ntens�ty (2002) and percentage change (�992-2002)

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�0

As countries become dependent on imported agricultural commodities to meet their food needs, three other impact areas are also discernable: the energy content embodied in imported food, resulting from transportation, distribution and storage of food; trade in virtual water, i.e. water lost (for example, as steam) or embedded (as water content of beverages or fruits, for example) in the production of traded goods; and the production of greenhouse gases such as methane and nitrous oxide.

Organic farming is an important response to the multiple threats to environmental sustainability posed by intensive agricultural production. However, more explicit policy support is needed. Only around 2.2 per cent of agricultural land in Australia was used for organic agriculture in 2004, the highest proportion in the region. Biotechnology is expected to play an increasingly important role in boosting agricultural productivity. At least five countries in the region are using genetically modified crop varieties to boost production; some of these transgenic crops (which include genetically modified varieties of maize, cotton and soybeans), have been marketed as providing increased herbicide tolerance and resistance to insect attack.

Declining fish stocks and increasingly lower marine catches per unit effort make aquaculture an attractive alternative to capture fisheries. The region accounts for an estimated 91 per cent of global aquaculture production, with the major contribution from China which leads world aquaculture production, contributing some 70 per cent of world production. But aquaculture production has also resulted in the loss of mangrove forests, land degradation and water pollution.

Urbanization and the spread of the global consumer society

Regional urban populations are projected to increase by some 352 million people between 2005 and 2015. South Asia will be the epicenter of this growth of urban centres: how these centres use resources will determine future environmental pressures.

Evolving urban lifestyles increasingly reflect globalizing consumption patterns characterized by energy and resource-intensive and high waste-producing consumption patterns. These consumption patterns are becoming entrenched. While many countries have yet to completely meet basic needs, the growth of “discretionary” and conspicuous consumption accompanying income rises represents a critical threat to environmental sustainability and runs counter to the traditional cultural values of many Asian and Pacific societies. Urban lifestyles imply expanded water and energy demand, expanded transportation infrastructure needs, and increased waste production, per person. New waste streams reflect changing consumption patterns — PET bottles for drinking water, e-waste and packaging from processed food. Demographic, income and lifestyle changes result in smaller, but more energy-intensive households. As an example, the demand for refrigeration is expanding rapidly; per capita sales of refrigerators increased by as much as 16 times between 1995 and 2000 in China and 22 times in Thailand and Viet Nam. 2�

As lifestyles change, food consumption patterns also change. People in Asia and the Pacific are consuming smaller quantities of traditional staples (e.g. rice and root crops), and more wheat and wheat-based products. New urbanites with rising incomes are demanding an increased diversity of food sources, higher protein and energy dense foods. These changing consumption patterns have consequent implications for energy use (from transport), agricultural production patterns, nutrition and health.

44.

45.

46.

47.

48.

49.

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��

60

80

100

120

140

160

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Railway traffic (Passenger -kilometres) Road traffic (Passenger cars)

Air traffic (Passenger-kilometres)

People are increasingly demanding and being able to afford personal modes of motorized transport of all kinds, particularly where transport policies and underdeveloped mass transit infrastructure indirectly promote their use. The numbers of passenger cars, for example in use in some fast-growing economies of South and South-East Asia have more than doubled from 1990 to 2002. This has implications for energy use — transport by truck can use 16 times more energy than transporting the same volume of material by rail. Energy intensity (energy used per passenger) in road transport in the Republic of Korea has increased from 1.88 toe/thousand passengers (three times the level of rail transport), to four times the value, between 1995 and 2000. 22

50.

Source: United Nations Department of Economic and Social Affairs Population Division (2004). World Urbanization Prospects: The 2003 Revision, United Nations publication Sales No. 04.XIII.6 (New York, United Nations); ESCAP (2005). Statistical Yearbook for Asia and the Pacific, 2003, United Nations publication Sales No. 04.II.F.1 (New York, United Nations).

Passenger travel (�ndex, �993 = �00)

-1.5 0.0 1.5 3.0 4.5 6.0

Seoul

Shanghai

Osaka-Kobe

Beijing

Moscow

Tianjin

Tokyo

Tehran

Istanbul

Metro Manila

Kolkatta

Jakarta

Mumbai

Karachi

Dhaka

Delhi

Millions

Projected change �n populat�on, largest As�a-Pacific cities (2005-2015)

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�2

0 1000 2000 3000 4000 5000 6000 7000

China

United States ofAmerica

Japan

Republic of Korea

Russian Federation

India

‘000 metric tons

2001 2004

Jan ’00 Jan ’01 Jan ’02 Jan ’03 Jan ’04 Jan’05

1,200

1,400

1,600

1,800

2,000

Increased demand for raw materials, energy and water

The extraction and processing of raw material as inputs to manufactures, buildings and infrastructure, as well as to support services provision is one of the main sources of environmental pressure.

The increasing demand for timber to support both production of wood products for both domestic and export markets, means that the region’s natural forests are under significant pressure from illegal or indiscriminate logging and replacement by plantation forests. Given the difficulty of verifying the origin of wood and wood products, several countries are significant importers of timber of illegal and suspicious origin. Forest products exports from Pakistan, Sri Lanka, India and the Russian Federation more than doubled between 1990 and 2001. With the exception of the Russian Federation, these countries’ natural forest cover has been reduced significantly. In 2002 the total area of forests in the region certified by the Forest Stewardship Council as meeting specified forest management principles and standards geared toward sustainable forest management, only constituted some four per cent of the global total. 23

Regional iron ore production which accounts for the majority of mineral production increased by some 40 per cent between 1995 and 2004,24 while global production of iron ore increased by 30 per cent in the same period. Mineral production is growing fastest in Thailand; its iron ore production rose almost 20-fold in the same period. In Viet Nam and Malaysia iron ore production tripled, and in Australia production increased by 70 per cent.25 China and Japan are the two main markets for processed minerals in the region. China is now the world’s largest aluminum and copper-consuming country.

51.

52.

53.

Alum�n�um consumpt�on

Source: World Bank Commodities Market Briefs web page, accessed on 14 March 2005 from <http://web.worldbank.org/external/default/main?theSitePK=612501&contentMDK=20659291&menuPK=1691529&pagePK=64218950&piPK=64218883>.

Alum�n�um monthly pr�ces ($/metr�c ton)

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�3

60

80

100

120

140

160

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

WorldESCAP countries Developing ESCAP countries

Product�on of electr�c�ty, gas and water (�ndex, �995 = �00)

-50% 0% 50% 100% 150%

Malaysia

Rep.of Korea

Islamic Rep. of Iran

Thailand

Singapore

Viet Nam

Indonesia

Bangladesh

Philippines

Pakistan

Sri Lanka

Brunei Darussalam

India

Nepal

ASIA-PACIFIC

Turkey

China

New Zealand

Australia

WORLD

Myanmar

Japan

Cambodia

DPR Korea

Whether non-renewable resources such as oil and other minerals are in immediate danger of running out is still a matter of debate; a more immediate danger is the artificial scarcity created by rising prices. Rising energy prices increase the prices of other commodities such as minerals and nitrogenous fertilizers because of the direct and indirect use of energy in their extraction, refining and production processes. Agricultural commodities such as ethanol (a biofuel), inputs for making biofuels, such as molasses, and wood and natural rubber that can substitute for petroleum-based products also experience price increases as energy prices rise.

Energy consumption in the region rose by more than 40 per cent from 1990 to 2002; twice the increase of global consumption in the same period. Despite current concerns about the increasing energy consumption of large, fast-growing developing economies such as China and India, there is still substantial unmet demand. In 2002, the average per capita energy consumption in the ESCAP region was only about 60 per cent of the global figure. An estimated 270 million people in East Asia and the Pacific, and 500 million people in South Asia lack access to electricity services. 26

Combustible renewables (biomass) and waste is the source of 59 per cent of the energy consumed by the residential sector in developing countries in the region, as compared with four per cent in developed countries. Indoor air pollution from burning biomass fuels is responsible for an estimated global death toll of 1.6 million

54.

55.

56.

Source: World Resources Institute (2005). EarthTrends: The Environmental Information Portal. Available at <http://earthtrends.wri.org>.

Energy use - percentage change �990-2002

Source: ESCAP (2005). Statistical Yearbook for Asia and the Pacific, 2003, United Nations publication Sales No. 04.II.F.1 (New York, United Nations).

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�4

persons from indoor air pollution per year; 59 per cent are women or girls and 56 per cent are children aged under five; around 26 per cent (420,000 people per year) of these deaths occur in India alone.27

Energy intensities (energy use per unit GDP) are high in many countries and increased in countries such as Indonesia, the Islamic Republic of Iran, Malaysia, the Philippines, the Republic of Korea and Thailand between 1990 and 2002. Industrial production in some of the most energy-intensive sectors (including production of iron and steel) is growing faster in regional developing countries than in regional developed countries. As incomes increase, developing countries are also facing growth in energy demand from the transport sector. Energy use in this sector increased by some 14 per cent between 1996 and 2003.28

Expanding energy demand is driving energy infrastructure development projects in every subregion, from massive hydro-electricity projects to trans-border natural gas and oil pipelines. Many projects are linked to environmental changes in ecologically sensitive areas, biodiversity loss, displacement of communities and social conflict.

In some 29 countries of the region, agriculture accounts for over 60 per cent of water usage; in 15 of these countries, this sector uses more than 90 per cent of water withdrawals. The proportion of irrigated areas expanded 25 times faster in Asia and the Pacific than in the rest of the world between 1990 and 2002, with major growth in South-East and South Asia based on relatively inefficient surface irrigation systems.29 The growth in irrigated agriculture for export is likely to have had a significant impact on overall water demand. Thailand has been identified as the fourth largest net exporter of virtual water globally, exporting an estimated 233.3 billion m3 of water along with its world-famous agricultural produce in a five-year period from 1995 to 1999.30

Increased vulnerability to climate change and natural disasters; however, climate change mitigation action is becoming more and more compatible with energy security and economic objectives.

Mounting scientific evidence affirms the reality of climate change. Human activity is the primary driver for the increased concentrations of gases that have already brought significant changes to the earth’s climate.3� The implications of climate change are far reaching for many countries of the region. Small island states have already been seriously affected by rising sea levels. The Pacific islands of Tuvalu and more recently the Carterets islands of Papua New Guinea have announced plans for evacuation.

The range of projected and current impacts of climate change on Asian and Pacific countries32 includes:

Increasing food insecurity, affecting most of the region’s food basket and coastal areas;

57.

58.

59.

60.

61.

ß

0

205

410

615

820

1025

1940 1950 1960 1970 1980 1990 2000 2010

km3 p

er y

ea

r

Siberia and Far East of Russia North China and MongoliaSouth-East Asia South AsiaCentral Asia and Kazakhstan TranscaucasiaWestern Asia

Water w�thdrawal, As�a

Source: Shiklomanov, I.A, (2004). “Assessment of water resources in Asia in the 21st Century” (unpublished report).

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Accelerated extinction rates;

Changing marine productivity, influenced by coral bleaching and impacts on mangroves and sea grass beds;

Increasing drought in desert ecosystems;

Changing hydrological regimes and increased winter flooding, but decreased summer flow. Water-stressed areas have experienced increasing water scarcity and growing competition for water;

Increasing frequency of tropical cyclones; and

Warmer and more humid conditions have increased the potential for heat-related and infectious disease; the incidence of respiratory and cardio-vascular diseases in arid and semi-arid areas; and vector-borne diseases in temperate and tropical areas.

Regional CO2 emissions increased by almost 30 per cent between 1990 and 2000, with most of this growth (in absolute terms) occurring in India and China; several smaller economies have some of the fastest rates of growth in CO2 emissions, corresponding with their fast-growing energy consumption. While accounting for some 40 per cent of global energy use in 2001, the region consumed 52 per cent of global coal-based energy use.

Asian and Pacific developing countries, with the exception of China and India do not figure among the major global contributors to CO2 emissions, the most important greenhouse gas. Despite the growing attention to fast-growing developing countries such as China and India, these countries’ per capita CO2 emissions are up to 18 times lower than those of some developed countries.

Public electricity and heat production are the main sources of greenhouse gas emissions globally, followed by the transport sector, which is the fastest growing contributor. Developing Asia (not including the former USSR) emits about 1 ½ times more CO2 per unit of electricity produced (from all fuels) than the world average.33 Other sources of greenhouse gases are also important in the region. These include agricultural activities which are the principal sources of methane and nitrous oxide, deforestation and conversion of forests to other land uses.

The future success of greenhouse gas mitigation in Asia and the Pacific will largely depend on energy efficiency and energy conservation; reforestation efforts; integration of climate mitigation policies; domestic air pollution abatement; and integration of policies relating to agriculture, land use and energy systems. However, perhaps the highest impact will be obtained from infrastructure investment and planning that explicitly seeks to reduce greenhouse gas emissions, whether in the construction, transportation or energy sectors.

Action to mitigate climate change is becoming synonymous with action on improving energy security and is increasingly compatible with economic objectives. Improving energy efficiency and changing consumption patterns is becoming more urgent, and more feasible, in light of the recent elevated energy prices, the proven high returns on investments in energy conservation and efficiency, and the availability of financing options offered by international emissions trading, joint implementation and the clean development mechanism (CDM) of the Kyoto Protocol. A total of 27 CDM projects were registered by Asian and Pacific countries as of December 2005. These projects were expected to reduce greenhouse gases by 18.9 million metric tons of CO2 equivalent annually. Some 90 CDM projects from the region are in various stages of preparation, and 24 countries have already identified their Designated National Authorities, thereby facilitating their participation in CDM activities. The CDM’s potential is still largely untapped and there are a number of institutional, financial and procedural hurdles to be overcome.

ß

ß

ß

ß

ß

ß

62.

63.

64.

65.

66.

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�6

0% 20% 40% 60% 80% 100%

MyanmarGeorgia

BangladeshTajikistanSri Lanka

Viet NamPakistan

PhilippinesArmenia

KyrgyzstanIndonesia

IndiaDPR Korea

TurkeyThailand

Islamic Rep. of IranChina

New ZealandUzbekistan

MalaysiaAzerbaijan

TurkmenistanRep. of Korea

JapanRussian Federation

SingaporeKazakhstan

Brunei DarussalamAustralia

NepalPublic electricity

Unallocated

Other EnergyIndustires

Manufacturing

Transport

Others

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

aidobmaCJapan

VanuatudnalaeZweN

NepaleropagniSRDPoaLaeniuGweNuapaP

SamoaijiF

ainemrAaknaLirShsedalgnaBailartsuAaeroKfo.peRsdnalsInomoloSsenippilihPnatuhBdnaliahTaisyalaMaigroeGnatsikaPaisenodnIsevidlaMnatsikijaT

maNteiVaidnInatszygryKanihCnarIfocilbupeRcimalsInatsinemkruTnajiabrezAailognoM

Uzbekistan

Metric tons of CO2 per million constant 1995 $US

Certified emission reduction (CER) financing needs to be mainstreamed with other corporate industrial and infrastructure development financing mechanisms, in order to generate CERs on a scale that can potentially make a significant difference to total GHG emissions. While governments have expressed support for energy efficiency, there is greater reluctance to move towards action explicitly geared towards reducing greenhouse gas emissions, even if it is known that these emission reductions are a consequence of energy efficiency measures.

Approved for the first time in April 2005, the unilateral CDM approach allows a developing country to plan and finance its own GHG reduction projects instead of being a passive host to projects identified by developed countries. Unilateral CDM provides an avenue for developing countries to proactively initiate greenhouse gas emissions reduction initiatives while tapping a new source of financing through CER purchase agreements with entities from Annex I developed country parties to the Kyoto Protocol.

67.

68.

Source: World Resources Institute (2005). EarthTrends: The Environmental Information Portal. Available at <http://earthtrends.wri.org>; International Energy Agency (2004). CO2 Emissions from Fuel Combustion 1971-2002: 2004 Edition (Paris, OECD/IEA).

Notes: Unallocated emissions – the sum of emissions from independent energy producers; Others – emissions from commercial/institutional activities, residential, agricultural and other unspecified sources but included in the Intergovernmental Panel on Climate Change guidelines.

CO2 em�ss�ons per un�t of GDP (2002) Share of per cap�ta CO2 em�ss�ons by sector (2002)

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The Asian and Pacific region is the most disaster-prone region in the world, accounting for around 80 per cent of all natural disasters worldwide and some 90 per cent of deaths from natural disasters since 1900.34 Among the most destructive and frequent hazards have been flash floods, earthquakes, storm surges and droughts. Prolonged droughts in South Asia (mainly in Afghanistan, Pakistan and India) have compromised food security and caused widespread famine and food shortages.35 From 2000 to 2004, over half a billion people (one in eight persons) across Asia and the Pacific were affected by drought. An almost equal number were affected by flooding in the same time period. Over 176,000 persons were listed as killed and almost 50,000 missing in the December 2004 tsunami in the Indian Ocean and South-East Asia,36 while over 79,000 persons died in the October 2005 earthquake in Pakistan.

Deforestation, soil erosion, overgrazing, over-cultivation and other unsustainable agricultural practices and the degradation of natural buffers have amplified the effects of natural hazards. Communities sheltered by coastal buffers e.g. sand dunes or mangroves, were found to have suffered substantially less damage in the December 2004 tsunami.

Other human interventions also increase the vulnerability of societies to disaster. The growth of regional megacities exposes the inherent vulnerability of underground spaces, including subways and parking lots to floods, fires and earthquakes.

It is estimated that early warning systems have a cost benefit ratio of 10 or 15 to 1.37 Japan has demonstrated the benefit of a very well established disaster preparedness system. Similar observations have also been noted, but on a more localized scale, in the Philippines, India and Bangladesh. At the same time, the need has become apparent for integrated risk management approaches which support disaster management, as well as promote development that reduces rather than increase disaster risks.

Is decl�n�ng env�ronmental susta�nab�l�ty a necessary consequence of growth?

The region’s economies are taking widely differing growth paths, with varying environmental consequences. De-linking economic growth from resource use, pollution and irreversible ecosystem change is a critical requirement of environmental sustainability. A closer look at the trends of CO2 emissions as compared with GDP trends shows that some countries, e.g. China and Malaysia, have managed to slow the rate of CO2 emissions while their economies continue to grow. In others countries, notably Thailand and India, the growth of CO2 is tightly linked to GDP growth. Pollution control as a key determinant of environmental performance is also found to improve as incomes increase, as shown by the Environmental Performance Index.38

While discussions in the private sector have focused on eco-efficiency at the level of the enterprise or firm, greater attention to economy-wide or sectoral eco-efficiency, is necessary. Potential economy-wide and sectoral eco-efficiency measures offer a basis for monitoring, over time, or comparing between countries, the relative environmental impacts or resource use of each “unit” of growth, and are therefore essential indicators of the changing or relative environmental sustainability of economic growth patterns.

A few indicators (energy use, CO2 and SO2 emissions per unit of GDP, for example) seem to indicate that although eco-efficiency gains are achievable in production activity, particularly with respect to pollution control at the firm level, the same does not hold for consumption activity. As consumption pressures indicated by per

69.

70.

71.

72.

73.

74.

75.

Economic growth and environmental pressure can be de-linked by promoting more eco-efficient growth patterns. As economies grow, more eco-efficient production may be observed, but greater eco-efficiency of consumption is more difficult to achieve.

Ü Chapter 3

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capita resource use and waste and pollution emissions, for example, grow as a result of increased incomes, the progress made on improving eco-efficiency of production processes is compromised.

Increases in consumpt ion are needed in the least developed countries and developing countries to meet basic needs – consumption levels are expected to increase as economies grow from the lowest income levels. However, among countries at the same level of socio-economic development, as indicated by the Human Development Index (HDI), there are widely differing consumption-related environmental pressures, as indicated by the ecological footprint per capita. High consumption levels are not always synonymous with high levels of socio-economic development.

How can susta�nable development be achieved in Asia and the Pacific?

Rapid economic growth has enabled significant economic and social progress in the region, but the goal of sustainable development remains elusive. Developing economic growth patterns which do not compromise environmental sustainability is an urgent global priority, and is most relevant to the dynamic Asian and Pacific region. Environmentally sustainable economic growth, or green growth, was endorsed by government delegates from more than 50 regional countries in March 2005 as a new policy focus aimed at resolving the current conflict between efforts to reduce poverty and efforts to reduce environmental sustainability – i.e. to build synergies between economic growth and environmental sustainability.

Green growth is growth in GDP that maintains or restores environmental quality and ecological integrity. Green growth decouples negative environmental impact from economic growth processes. Green growth is about an evolution towards a sustainable economy in which the first principle is that ecosystem goods and services, and therefore their sustainable use, are critical to long-term economic and social viability. It is precisely because the economies of developing and least developed countries must continue to grow to meet human needs, because their consumption patterns are not yet fully entrenched, and because a focus on green growth can reduce both present and future costs of development, that it is perhaps most relevant to these countries.

76.

77.

78.

Australia

Chile

France

India

Japan

Malaysia

Netherlands

Republic of Korea

Thailand

Armenia

AzerbaijanCambodia

Canada

China

Denmark

Germany

Indonesia

Iran

Kazakhstan

Lao PDR.

Mongolia

Nepal, Bangladesh

New Zealand

Pakistan

Papua New Guinea

Philippines

Russian Federation

Sri Lanka, Kyrgyzstan,

Sweden

Switzerland

Turkey

Turkmenistan

United Kingdom

United States of America

Uzbekistan

Viet Nam

0

1

2

3

4

5

6

7

8

9

10

0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1

Human Development Index (2001)

Eco

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(200

1)

Source: Ecological footprint per capita: Data provided by the Global Footprint Network, July 2005; Human Development Index; UNDP, Human Development Report website online database, accessed on 2 February 2006 from <http://hdr.undp.org/statistics/>.

Ecolog�cal footpr�nt per cap�ta vs. Human Development Index

Green growth presents a new policy focus

to institutionalize more environmentally sustainable economic

growth patterns. Adoption of greener growth patterns

is more urgent and relevant in the context of fast-

growing Asian and Pacific economies than anywhere

else in the world.

Ü Chapter 4

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Building eco-efficient economies that explicitly focus on creating wealth, not more waste, is the first step to green growth – efficient resource use and waste minimization must be the first priority of LDCs and economies in transition while, for the fast-growing developing countries and developed countries, eco-efficient consumption will be an important watchword in the quest for global sustainability, not least because these countries’ consumption patterns impact on the production and consumption patterns in other countries. Developing infrastructure to avoid potential hidden infrastructure costs and to “hard-wire” eco-efficient consumption patterns is a concern to all countries. At the same time, enshrining more equitable access to resources such as water in public policy can lead to greater eco-efficiency all round.

Green growth is also about capitalizing on synergies between economic growth and environmental protection. This means actively promoting business opportunities which lead to environmental protection, meeting the energy and water needs of the lowest income groups using environmentally friendly technologies, and investing in natural capital to increase environmental carrying capacity. Indigenous knowledge, traditional lifestyles and cultural values can serve as a strong foundation for action in these areas.

Protecting environmental resources in a market economy in which they are not appropriately valued requires targeted incentives. The application of economic instruments such as green budget and tax reform is one way of promoting greener investment and more eco-efficient production and consumption. More environmentally sustainable decision-making and public policy require a realistic valuation of economic and social progress, including assessments of natural capital. Initiatives such as the development of green GDP by several regional countries hold much promise.

There are several barriers to green growth, but many positive steps hint at the intriguing possibilities for decoupling economic growth from environmental pressure and simultaneously improving human welfare. Support for such initiatives must be institutionalized through public policy. As economies grow and change, their accountability for the environmental impact of their consumption patterns and for supporting more eco-efficient production processes in jurisdictions that have come to support these lifestyles should also increase. Green growth will require regional and international cooperation, and countries like Japan and the Republic of Korea have taken action to support green growth in the region. China has taken several bold steps, which policymakers, sustainability proponents, academics and other interested observers will be watching carefully, and it will be able to share these experiences in a few years’ time.

79.

80.

81.

82.

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20

The M�llenn�um Development GoalsGoal 1. Eradicate extreme poverty and hungerGoal 2. Achieve universal primary educationGoal 3. Promote gender equality and empower womenGoal 4. Reduce child mortalityGoal 5. Improve maternal healthGoal 6. Combat HIV/AIDS, malaria and other diseases

Goal 7. Ensure environmental sustainabilityGoal 8. Develop a global partnership for development

How �s the reg�on perform�ng w�th regard to �ts �nternat�onal comm�tments to M�llenn�um Development Goal 7?

The United Nations Millennium Declaration was adopted in September 2000 by the largest-ever gathering of world leaders. Through this declaration, governments and the international community committed to the pursuit of the Millennium Development Goals (MDGs) which formed the basis for the development of “the most broadly supported, comprehensive, and specific poverty reduction targets the world has ever established.”39 These eight development goals are primarily directed at cutting world poverty in half by 2015.

An agreed framework of targets and indicators serves as a basis for monitoring progress towards the goals.40 In 2005, the United Nations World Summit assessed global progress on implementing the MDGs.4� Also in 2005, regional ministers convened in Jakarta to assess progress on the full suite of goals and indicators, and endorsed the Jakarta Declaration on Millennium Development Goals in Asia and the Pacific, reaffirming regional commitment to the goals.42

Assessment of progress on the seventh MDG – ensuring environmental sustainability – using the internationally agreed framework of indicators and targets shows that no country has achieved significant progress towards this goal. Only in the areas of increasing the ratio of protected areas, slowing or reversing loss of forest cover and increasing the proportion of population with access to improved water43 has there been significant regional progress. The formulation of national sustainable development strategies is a widely accepted indicator for target 9, which relates to integrating the principles of sustainable development into country policies and plans. As of 2004, only fifteen countries had formulated and adopted these important strategies. Several studies review the reasons why; prominent among them are the complexities of operationalizing well-accepted sustainable development principles in a developing country context.

The MDGs highlight the inextricable links between human well-being, the rights of individuals to benefit from development and the imperative to protect the environment as a basis for human development. The Millennium

83.

84.

85.

86.

Ü Chapter 5

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2�

Ecosystem Assessment reasserted that the state of the natural environment was a dominant factor in the fight against poverty.44 Environment-health-poverty dynamics mean that the poor usually bear the heaviest burden of environmental degradation, being the most susceptible to communicable diseases (in particular those related to poor sanitation and environmental change), and in consequence the loss of livelihoods and income-earning capacity. The benefits derived by rural communities from biodiversity resources and the natural environment, both directly and indirectly, are substantial but are not accounted for in traditionally applied measures of economic growth. Hunger is still concentrated in rural areas, mostly affecting those who depend largely on the consumption and sale of products derived from natural resources.45 In effect, in developing countries in particular, it is unlikely that achieving MDG1, relating to poverty reduction, can truly be achieved unless MDG7, relating to environmental sustainability, is also achieved.

Given the debate about the applicability of the agreed framework of indicators to all countries, the approach of some countries, such as Cambodia, in defining their own frameworks of goals and targets is instructive. In other countries, such targets should be carefully defined to directly address the pressures placed on each resource, using a careful assessment of the current situation, the policy and resource requirements for meeting each target and the scaling up of successful approaches.

Green growth is a critical approach to achieving both MDG7 and MDG1, which relates to poverty reduction. The current pursuit of economic development for poverty reduction places these goals at cross purposes; green growth approaches seek to reconcile them.

87.

88.

0 10 20 30 40

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Target 9. Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources

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22

0 5 10 15 20 25

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Note: 2000 values: Armenia =26, Cambodia = 95, Turkmenistan = 5

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23

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What are the key determ�nants of susta�nable development �n each subreg�on?

Central Asia and the Caucasus

Central Asia and the Caucasus is divided by the Caspian Sea into two distinct areas. The Caucasus, comprising Armenia, Azerbaijan and Georgia and located to the west of the Caspian Sea, is more strongly culturally and ethnically associated with Europe. Central Asia, to the east of the Caspian Sea, is made up of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. After a period of economic and social turbulence, these countries are among the fastest growing economies in the region, benefiting from soaring commodity prices, strong exports and trade with the reviving Russian Federation economy. Rising oil prices and accelerating exploration activity are filling the treasuries of oil producers Azerbaijan, Kazakhstan and Turkmenistan.

Despite recent services sector growth, the economies of these countries are still weighted in favour of the exploitation of natural resources, mainly through mineral extraction and agricultural production, with some manufacturing and, in the case of Kyrgyzstan and Tajikistan, hydro-electric power. Economic and political transitions have left gaps in financing, in particular for infrastructure, water, energy and social services, which have slowed or reversed socio-economic progress. Poverty rates have been reduced in Kazakhstan and Turkmenistan, but in other countries there has been a marked increase in poverty and a reduction in social services and social protection.

In this subregion, the futures of energy and water resources are critically interlinked. The Aral Sea and its associated river systems are shared by Central Asian countries and are the basis of the economically and culturally significant agricultural activity and, critically, a source of hydro-electricity. The lamentable situation of the Aral sea and its once-thriving coastal communities is now recognized as a symbol of the environmental, economic and social consequences of exceeding environmental carrying capacity. Despite high awareness and commitment to action since the early 1990s, the Aral Sea was still shrinking as a result of environmentally unsustainable agricultural water use regimes ten years later. The growth of agriculture therefore came at the expense of the Aral Sea fisheries and local communities. An ambitious and costly plan by Kazakhstan to raise the level of the Aral Sea may reduce salinity levels enough to restore the fishing industry. Kazakhstan’s Lake Balkash is showing signs of suffering the same fate as the Aral Sea.

One important challenge to green growth in this subregion is the limited investment capacity which prevents these countries from improving the efficiency of their energy and water use. The increasing frequency of natural disasters of anthropogenic origin, spreading environmental damage linked to oil exploitation, still significant poverty reduction needs, growing environmental remediation and clean-up costs and deteriorating environmental infrastructure and urban environments all underline the need for action to promote more environmentally sustainable growth patterns.

Growing stakeholder awareness holds significant promise for improving future environmental prospects. This group of countries is unique in the region as signatories to the Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters (Aarhus Convention). The implementation of the principles promoted by this convention provides an opportunity for improving governance processes,

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even in areas beyond environmental protection. Subregional cooperation on environmental issues is mainly addressed through the forums of the International Fund for Saving the Aral Sea, and its subsidiaries, the Interstate Sustainable Development Commission and the Interstate Coordination Water Commission. The International Fund for Saving the Aral Sea is coordinating the development of a Regional Environmental Action Plan for Central Asia, supported by UNEP, which was officially launched in September 2001. The framework of the Special Programme for the Economies of Central Asia, initiated by ESCAP and ECE, supports the Central Asian states in developing subregional cooperation, creating incentives for economic development and for the integration of these states into the economies of Europe and Asia, and could potentially serve as important forum for cooperation promoting more environmentally sustainable economic activity. Climate change, which threatens to reduce water supplies, makes the search for joint solutions to water resources management more urgent.

North-East Asia

The North-East Asia subregion is comprised of China, the Democratic People’s Republic of Korea, Japan, Mongolia, the Republic of Korea and the Russian Federation.46 A large proportion of the land area is subject to desertification or lies in arid regions, substantially reducing its environmental carrying capacity. North-East Asian countries have been successful in reversing forest losses, increasing the areas protected for biodiversity conservation, improving air quality in several cities and reducing the consumption of ozone-depleting substances. However, environmental pressures continue to grow. The main sources of these pressures are the push for accelerated economic growth, high and rising incomes, urbanization, changing lifestyles and relatively high energy intensities in some countries. The environmental situation of the Democratic People’s Republic of Korea, as recently described by UNEP,47 shows that, despite its limited economic activity and substantial resource base, the country still faces challenges common to other developing countries.

The main challenge to green growth in this subregion lies in the rapid growth of consumption which has fuelled the demand for energy, water and raw and semi-processed materials, including environmentally sensitive commodities. The demand for raw materials, particularly from the Chinese economy, is driving mineral production throughout the region as well as the trade in recyclable material. The expanding energy use of Japan, the Republic of Korea and China, particularly in the transport sector, is a source of pollution and greenhouse gas emissions which are globally important. The economies of the Russian Federation and Mongolia are still relatively dependent on supplying environmentally sensitive commodities such as minerals, fossil fuels and luxury fleece. Overgrazed lands in Mongolia are sites of accelerated desertification processes which have contributed to the increasing frequency and intensity of dust and sand storms. The most serious environmental threat to North-East Asia’s marine environment and coastal economies is now oil spills from the higher volume of tanker traffic and number of offshore oil rigs. Following a dramatic increase in the marine fish catch up to about 2001, there have been general declines in catch linked to over-fishing.

Some 48 per cent of North-East Asia’s population lives in cities.48 Urban population growth is changing North-East Asian societies. Aging and inadequate infrastructure threatens human health in rapidly urbanizing Mongolia and the Democratic People’s Republic of Korea, and rising municipal waste affects all countries. One of the fastest growing waste streams is that of e-waste. Acid rain persists despite recent reductions in SO2 emissions and reduced ambient concentrations in many urban centres. NO2 emissions attributable to fuel combustion for transportation pose more of a challenge and the concentrations of this acidifying gas exceed WHO guideline thresholds in many cities.

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Large-scale urbanization and industrialization have resulted in localized shortages of freshwater resources in China, Japan, Mongolia and the Republic of Korea, especially in times of drought. In China, groundwater exploitation has lowered water tables by up to dozens of metres in some areas, since the 1960s. Although the Democratic People’s Republic of Korea is well-endowed with water, water pollution has pushed the issue of water resources management up its development agenda. Low levels of access to sanitation and high rates of urbanization in Mongolia and China, together with limited or declining treatment of waste water, add to the load of organic pollutants from industry entering already stressed water courses. The ability of the subregion, and of China and Mongolia in particular, to meet water needs may be further compromised by the impacts of climate change, which are already impacting on localized rainfall patterns. 49, 50

Despite the high levels of environmental pressure and limited environmental carrying capacity that characterize this subregion, there is a strong justification for taking an optimistic view of North-East Asia’s future. Some countries have distinguished themselves by establishing innovative policies to move beyond pollution control towards improving the environmental sustainability of production and consumption patterns. Japan, with its launch of the 3R initiative in March 2005, has extended the promise of a sustainable future to the world. China has the highest renewable energy use in the subregion and has placed the development of a “Resource Saving Society” high on its policy agenda. Subregional cooperation on environmental issues is maturing, through subregional groupings such as the North-East Asia Subregional Programme for Environmental Cooperation, with its cooperative work programme and core funds. Although subregional environmental cooperation is still very much centred around natural resource management and pollution control, efforts to expand the cooperation to other areas, such as energy security and eco-efficiency are growing. These cooperation frameworks present substantial scope for action to promote more environmentally sustainable patterns of economic growth.

The Pacific

The Pacific subregion includes Australia, New Zealand and some of the world’s smallest island states and territories in three ethnic and bio-geographic groupings: Melanesia, Polynesia and Micronesia. In a globalizing world, Pacific small island developing States (SIDS) are facing declining competitiveness, the erosion of traditional lifestyles, and a weakening of community-based decision-making processes that impact on the use of natural resources and food security. The vast distances between populated centres and outer islands and the disproportionately high cost of public administration and providing basic services add to the development challenges in the region. Over the past decade, the economic performance of the Pacific SIDS has been mixed, but generally poor. Despite the slow economic growth rates, the narrow and fragile resource base means that the environmental pressures associated with economic activity and population growth are becoming unsustainably high. Achieving green growth in this subregion therefore presents unique challenges.

The special case of the SIDS was recognized at the Rio Summit, consolidated at the Barbados Conference on Small Island Developing States in 1994 and at the Special Session of the United Nations General Assembly on Small Island Developing States in 1999, and reaffirmed at the International Meeting to Review the Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States in Port Louis, Mauritius in January 2005. The latter meeting adopted the Mauritius Declaration and Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States.

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Population growth, urbanization, and coastal development are now a growing challenge throughout the region. The Federated States of Micronesia, with small land areas and generally higher population densities, is under particularly intense pressure related to land use changes. Wastewater, industrial effluent and hazardous and municipal wastes present increasing challenges to the limited infrastructure and finances of these countries. Inappropriate sanitation technologies (such as pit latrines) threaten the freshwater supply.

The major share of the GDP of the subregion is earned by agriculture (including fisheries and forestry) and mining, with some countries focusing on financial services. There has been significant agricultural expansion in some countries, such as the Solomon Islands. In general, agricultural practices that reduce soil cover, and that result in soil erosion and sedimentation in coastal areas, are more of a problem than intensity of agro-chemical use in the SIDS. The subregion has increased the volume of roundwood production by some 40 per cent between 1992 and 2002. This production is mainly based on forest plantations in Australia and New Zealand. There has been significant forest cover loss in countries such as Samoa and the Federated States of Micronesia.

Subsistence fishing activity is moving away from traditional techniques and increasingly relying on unsustainable fishing practices. High rates of exploitation further threaten the sustainability of the Pacific fish stock, in particular the coral reef fisheries which are a critical basis for subsistence fisheries. The Pacific subregion increased its fisheries exports from 1991 to 2001 by some 34 per cent in volume and 56 per cent in value, from the previous decade. The numbers of threatened species are made globally significant in the light of the high number of endemic species found in this subregion. All of the countries in the subregion have experienced a decline in mangrove forests, increasing the islands’ vulnerability to cyclones and storm surges.

Due to the limited land area and narrow economic base, natural disasters, particularly those related to climate change, have a disproportionately high impact on the Pacific SIDS. Vulnerability to natural disaster is increasing as cyclones and storm surges become more frequent and as traditional lifestyles, practices and indigenous knowledge, once applied to mitigate the impact of disaster and to speed recovery, are eroded by social change. The effects of climate change are already being felt. While sea level rises lead to saltwater intrusion in the freshwater aquifers which serve as the main source of freshwater on many islands, growing anthropogenic pressures and the lack of infrastructure to deal adequately with increased wastewater leads to their further contamination.

Cooperation among the Pacific SIDS and between the SIDS and their larger neighbours is facilitated by a well-organized subregional institutional cooperation framework that has focused on capacity-building, the development of policy and plans, coordinating national and regional action and environmental assessment. Subregional cooperation efforts are manifested in the work of the Pacific Islands Forum, the Pacific Regional Environment Programme and the Council of Regional Organizations in the Pacific. Significant developments of the past decade in the region include the endorsement of the Pacific Plan for Strengthening Regional Cooperation and Integration in October 2005 by Pacific Islands Forum leaders and the Pacific Regional Ocean Policy, endorsed in August 2002. However, the gap between subregional commitment and coordination, and national action often remains wide, and requires greater focus on more effective and relevant capacity-building, particularly with respect to expanding opportunities for improving human well-being and welfare that are also low in environmental impact.

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South and South-West Asia

The subregion of South and South-West Asia covers Afghanistan, Bangladesh, Bhutan, India, the Islamic Republic of Iran, the Maldives, Nepal, Pakistan, Sri Lanka and Turkey. Most countries of the region are in various stages of economic, social and political reform, with poverty-reduction efforts and infrastructure development receiving significant support from development banks. While many of these countries are still mainly agricultural, there has been rapid growth in industrialization. India is one of the fastest growing large economies in the world. India, Turkey, Bangladesh, Sri Lanka and Nepal more than doubled their exports during the period 1990 to 2002. At the same time, poverty and hunger still affect a large proportion of the subregion’s populations, and children and mothers are particularly at risk compared to other parts of the region.

In contrast to other subregions, population growth continues unabated and the subregion’s total population is projected to swell by some 130 million persons between 2005 and 2010. The subregion may well be the epicentre of the global urbanization phenomenon. In only 10 years (between 2005 and 2015), some 159 million persons will swell the ranks of urban residents. Dhaka, Karachi, Delhi and Mumbai are among the fastest growing cities in the world. Meeting waste management, sanitation, water, transportation, energy and housing needs will require significant new investment and is made all the more urgent by the high vulnerability of these countries to environmental health threats, as well as the changing climate and weather patterns.

Despite the rapid growth of its cities, South and South-West Asia is the only subregion projected to remain predominantly rural in 2030. With the exception of Bhutan, all countries of the region increased agricultural production by 18 to 60 per cent between 1990 and 2002. Unsustainable agricultural practices, water scarcity and land degradation are major threats to the sustainability of the rural sector. Pakistan, Sri Lanka and Bangladesh have steadily intensified their use of agro-chemicals; in 2002, the consumption of mineral fertilizer per hectare of agricultural land of each country was substantially more than the global figure.5� Agriculture and deforestation are the most frequently cited causes of land degradation, which affects more than 50 per cent of the land area of the subregion and is concentrated in Turkey, India, Islamic Republic of Iran and Sri Lanka.

Poor water quality, low water availability per person, high dependence on water use for agriculture and the impacts of climate change mean that many of these countries are among the most vulnerable to long-term water scarcity in the world. Where land degradation coincides with water scarcity, the effects on rural communities are devastating. The multi-year drought that started in the late 1990s has destroyed livelihoods in Afghanistan, Islamic Republic of Iran and Pakistan and caused significant cross-border population displacements. Natural forests are rapidly declining in India and Pakistan, which lost up to one third of their natural forests during 1990 to 2000, while Sri Lanka lost up to 20 per cent of its natural forest, representing a significant loss of natural capital and a globally significant loss of biodiversity. Total forest cover loss has, however, been slowed by the rapid expansion of plantation forests in most countries except Sri Lanka and the Maldives. Biodiversity losses are continuing due to increasing population pressures, changing habitats and illegal activity.

This subregion has one of the most well-developed environmental cooperation programmes in the region and each country has a substantial legislative basis for environmental protection. The South-Asia Co-operative Environment Programme serves as the main forum for subregional environmental cooperation. This forum has been responsible for the development of the South and South-West Asian Seas Action Plan, under which a marine pollution contingency plan, and the Malé Declaration on Control and Prevention of Air Pollution and its Likely Transboundary Effects for South Asia was issued. In the Islamabad Declaration of January 2004, member states of

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Ü Chapter 10

the South Asian Association for Regional Cooperation (SAARC) stress their commitment to the SAARC Environment Action Plan and mandate the expedited commissioning of the work on drafting a Regional Environment Treaty. Several bilateral agreements address transboundary environmental issues, mainly relating to water resources.

From the green growth perspective, action to create economic incentives for protection of the natural resource base to ensure the continued flow of environmental goods and services is perhaps the most urgent in this subregion. At the same time, high population growth rates mean that a greater focus on reducing future environmental pressures, including the demand for energy and water, through urban planning and infrastructure development that explicitly seeks to maximise eco-efficiency and human welfare, is needed. The current underdeveloped state of the subregion’s infrastructure can be turned into an opportunity to create new, more environmentally sustainable economic growth patterns.

South-East Asia

The South-East Asian subregion comprises the ten member countries of the Association of Southeast Asian Nations (ASEAN) together with the newly independent country of Timor-Leste. These are now some of the most dynamic economies in the region, despite the impact of the 1997 financial crisis. Key sources of environmental pressure include a relatively high level of industrial activity in natural-resource-based industries and rising consumption. The expanding tourism sector and related infrastructure are also a driving force in changing land use, particularly in coastal areas. Access to improved water and sanitation, as well as the issues of transportation and related air-pollution and of solid waste management, are all urgent challenges, while hunger still affects a significant proportion of South-East Asian populations.

South-East Asia’s societies are changing as dynamically as their economies. The total urban population is expected to grow by more than 1/3 in the next 10 years. South-East Asia has experienced the fastest growth rates in per capita energy use in the region. The growing energy demand and the relatively rich natural resource base in some countries have led to a significant trade in energy and related infrastructure development. These developments improve the energy supply but, without careful planning and consultation, can also threaten rural community health and livelihoods. Rapidly expanding energy use in all sectors is responsible for rising pollution loads and the variable successes in reducing air pollution in urban centres.

The value of exports of agricultural products from South-East Asia has grown by more than 50 per cent over the past decade, a growth largely achieved by massive agricultural intensification. All of the countries in the subregion are experiencing land degradation from improper agro-chemical use, which also affects farmer health and water quality. Periodic transboundary haze events, in part related to oil palm planting activity still continue, despite the establishment of the Regional Haze Action Plan and the ASEAN’s Hanoi Plan of Action which call for a full implementation of the 1995 ASEAN Cooperation Plan on Transboundary Pollution.

Illegal forest resource exploitation, including illegal logging, encroachment for development, and conversion to agriculture, continues to be a problem. Thailand, the Philippines, Indonesia, Myanmar and Malaysia lost significant proportions of their natural forest area between 1990 and 2000. Data recently released by the FAO shows that natural forest losses have accelerated dramatically, with severe natural forest loss in Viet Nam and Cambodia during the years 2000 to 2005. The subregion is also recognized as a hotspot for illegal trade in biodiversity. After North-East Asia, the subregion is one of the most important producers of aquaculture products in the world, the production of which is associated with land degradation, soil and water contamination from antibiotics and loss

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of mangrove forests. South-East Asia is also the second biggest exporter and consumer of fish and fish products in the region. Overfishing has led to a reduction in fish stocks in many waters. Mangrove forests and coral reefs, which are essential breeding grounds for marine fish stocks, have suffered globally significant losses.

The distinction between natural and human-made disasters is becoming increasingly difficult to make in South-East Asia, as the loss of protective natural features increases vulnerability to natural disaster (as shown by the December 2004 tsunami).

Transboundary environmental issues such as haze pollution, the development of the Mekong River basin, cross-border deforestation, wildlife trade and the exploitation of coastal and marine resources require joint action by countries. ASEAN’s frameworks for environmental cooperation fulfill this function and enjoy a high degree of political support at the subregional level and have resulted in some positive initiatives, including several legal instruments and policy statements.

Even though the challenges are vast, there is a solid basis for action for promoting green growth. In order to improve the long-term outlook for South-East Asia, more effective action at the national level to address the root causes of environmental pressures and to change the patterns of growth that are becoming increasingly environmentally unsustainable, particularly with respect to the environmental impact of rapidly rising consumption, will be necessary to improve the long-term outlook for South-East Asia.

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End NotesESCAP estimate as at 2004.

“Improved sanitation” refers to facilities that hygienically separate human excreta from human, animal and insect contact. Facilities such as sewers or septic tanks, poor-flush latrines and simple pit or ventilated improved pit latrines are assumed to be adequate, provided that they are not public. “Improved water” refers to piped water, public tap, borehole or pump, protected well, protected spring or rainwater. Improved water sources do not include vendor-provided water, bottled water, tanker trucks or unprotected wells and springs. United Nations Development Group (2003). Indicators for Monitoring the Millennium Development Goals (New York, United Nations Development Group).

ADB (2005). Asia Water Watch 2015 (Manila, ADB).

Based on a survey covering 10,265 rural households from 118 villages, in dry desert zones and mountainous ecosystems. Parikh, Jyoti, Kirit Parkh, Vijay Laxmi, Shya Karmarkar and Pramod Dabrase (2003). Economic Analysis of Rural Pollution and Health Impacts in Northern India: A Multi-institutional project, in Jyoti K. Parikh and T.L. Raghu Ram, eds., Reconciling Environment and Economics: Executive Summaries of EERC Projects, (Mumbai, Indira Gandhi Institute of Development Research).

Ecological footprinting assesses resources consumed and waste generated by a given population and calculates the biologically productive area needed to produce the resources consumed and absorb the wastes generated (termed the “ecological footprint”). Bringing the ecological footprint and the bioproductive area to the same unit of measurement allows direct comparison of the demand for ecological services and their availability, and so, the estimation of ecological deficits and reserves or surpluses. For more information see the Global Footprint Network website at <http://www.footprintnetwork.org>, and Chambers, N., C. Simmons and M. Wackernagel (2000). Sharing Nature’s Interest: Ecological Footprints as an Indicator of Sustainability (London and Sterling, Earthscan Publications Ltd.).

Based on data from FAOSTAT online database, available at <http://faostat.fao.org/>, the Global Footprint Network website <http://www.footprintnetwork.org> and Shiklomanov, I.A, (2004), “Assessment of water resources in Asia in the 21st Century” (unpublished report).

Based on analysis of data for 21 Asia-Pacific countries (data for 2001), the Global Footprint Network concluded that the ecological footprint of the region was 1.7 times as large as its own biocapacity. See Global Footprint Network (2005). Asia-Pacific 2005: The Ecological Footprint and Natural Wealth (Gland, Global Footprint Network), accessed on 31 March from <http://www.footprintnetwork.org/newsletters/gfn_blast_ap_report_2005.html>.

Many cities have reported improvements in air quality in the last ten years, particularly in reducing SO2 concentrations, but levels of air pollution regularly exceed WHO and national standards. Small particulates (PM10) are the pollutants of main concern, but vehicular NO2 emissions are also cause for concern. In over 50 per cent of reporting cities, average annual concentrations of suspended particulates and NO2 have exceeded WHO standard limits. Based on data for 15 cities (suspended particulate matter),

19 and 17 cities for NO2 and SO2 respectively. Data for 2000-2003 as provided in Huizenga, C, G. Haq, D. Schwela, H. Fabian and M. Ajero (2004). Air Quality Management Capability in Asian Cities (Clean Air Initiative for Asian Cities Secretariat and Stockholm Environment Institute).

Based on the water exploitation index (WEI), i.e. the ratio of the mean annual total demand for freshwater to the long term average of annual renewable freshwater resources. WEI values greater than or equal to 20 are said to indicate situations of water stress in which water withdrawals leave ecosystems with diminished capacity to sustain themselves and in which countries experience intermittent or chronic water scarcity. WEI values above 40 indicate high stress levels. See the European Environment Agency (2003). “Indicator Fact Sheet (WQ01c) Water Exploitation Index,” Version 01.10.03, accessed on 10 November 2005 from <http://themes.eea.eu.int/indicators/all_indicators_box>.

Water Resources and Hydropower Planning and Design General Institute, Ministry of Water Resources, China (2004). “On China’s Action, Problem and Countermeasure in Efficient Water Use”, presentation at the ESCAP Ad-Hoc Expert Group Meeting on Water Use Efficiency Planning, Bangkok, Thailand, 26-28 October 2004.

Agence France Presse News Service, Beijing (2005). “Bubbling Economy Means Water Woes in China”, Yahoo News website, Friday 30 December 12:56 AM ET, accessed on 17 January 2006 from <http://news.yahoo.com/s/afp/20051230/wl_asia_afp/chinaenvironmentwater_051230055600>.

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Indomalaya refers to the biogeogaphic region encompassing the South-Asian subcontinent and South-East Asia, including lowland Taiwan Province of China and Japan’s Ryukyu Islands.

Reid, W. (2004). “Species, ecosystems, and human well-being: Lessons from the Millennium Ecosystem Assessment”, paper presented at the Third World Conservation Congress, Bangkok, 2004.

IUCN (2004). A Global Species Assessment (Gland, Switzerland, and Cambridge, United Kingdom, World Conservation Union).

In 1992 the IUCN World Parks Congress set a target for protected area coverage at 10 per cent of the world’s land area. This target was later endorsed by the World Summit on Sustainable Development in 2002.

ESCAP estimate based on data from FAO (2003). The State of the World’s Forests 2003 (Rome, FAO).

ESCAP estimate based on data from Spalding, M.D, C. Ravilious and E.P. Green (2001). World Atlas of Coral Reefs (Berkeley, University of California Press).

The industrial subsectors which are classed as highly toxicity-intensive include the chemical production and synthetic resins and plastics industrial subsectors. The linear acute toxicity index produced by the World Bank indicates relative acute toxicity (indicating acute impact on human health, rather than toxicity of a chronic or long-term nature) of selected industrial sectors, based on United States of America. coefficients of pollution intensity (pollution produced per unit product) and weighted by acute toxicity for over thirty industries in the late 1980s. See Brandon. C. and Ramesh Ramankutty (1993). Toward an Environmental Strategy for Asia, World Bank Discussion Papers No. 224. Chapter 4 pp. 65-73 (Washington, World Bank), accessed on 18 November 2005 from <http://www.worldbank.org/nipr/work_paper/224-4>.

Reference is made to an FAO index based on national average producer prices (1989-1991=100) as weights for computation of aggregate production of each country or area.

FAO (2004). Selected Indicators of Food and Agriculture Development in Asia-Pacific Region: 1993-2003 (Bangkok, FAO Regional Office for Asia and the Pacific). FAO’s definition of the Asia and the Pacific region does not include Armenia, Azerbaijan, Brunei Darussalam, Georgia, the Russian Federation, Singapore and Turkey.

Euromonitor (1997 and 2002). Consumer Asia 1997 and Consumer Asia 2002 (London, Euromonitor Plc.).

ESCAP (2004). End-use Energy Efficiency and Promotion of a Sustainable Energy Future, Energy Resources Development Series, No.39, United Nations publication Sales No. 04.II.F.11 (New York, United Nations).

FAO’s definition of the Asia and the Pacific region does not include Armenia, Azerbaijan, Brunei Darussalam, Georgia, the Russian Federation, Singapore and Turkey.

Excluding the Islamic Republic of Iran, the Russian Federation and other Commonwealth of Independent States countries. Based on data from the International Iron and Steel Institute (2005). Steel Statistical Yearbook 2005 (Brussels, International Iron and Steel Institute).

International Iron and Steel Institute (2005), ibid.

Saghir, J. (2005). “The global investment challenge. Financing the growth of renewable energy in developing countries” in Renewable Energy World, July-August 2005.

WHO Media Centre website “Indoor air pollution and health” accessed on 15 February 2005 from <http://www.who.int/mediacentre/factsheets/fs292/en and Jamal Sagir (2005), ibid>.

Based on International Energy Agency data.

Based on data from FAO (2004), op.cit.

See Hoekstra, A.Y, and P.Q. Hung (2002).Virtual Water Trade: A quantification of virtual water flows between nations in relation to international crop trade, IHE Delft Value of Water Research Report Series, No. 11, September 2002, (Delft, IHE Delft).

For the most recent global assessment on climate change, see Intergovernmental Panel on Climate Change (2001), Climate Change 2001: Synthesis Report, An assessment of the Intergovernmental Panel on Climate Change (United Kingdom, IPCC).

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As identified by the Working Group II of the Intergovernmental Panel on Climate Change. IPCC (2001). Technical Summary, Climate Change 2001: Impacts, Adaptation and Vulnerability, Report of Working Group II of the Intergovernmental Panel on Climate Change (Geneva, IPCC).

Based on International Energy Agency data.

EM-DAT: The OFDA/CRED International Disaster Database, Université Catholique de Louvain, Brussels, Belgium. Downloaded on 30 June 2005 from <http://www.em-dat.net>, Data version: v05.06.

Asian Disaster Preparedness Centre (undated). “Disasters in Asia and Pacific: an Overview”, accessed on 21 March 2006 from <http://www.adpc.net/infores/adpc-documents/Disastersinasia.pdf>.

Number of deaths -176,630 and 49,778 listed as missing (a total of 226,408). Data received from the secretariat of the OFDA/CRED International Disaster Database, Université Catholique de Louvain, Brussels, Belgium in July 2005.

United Nations University (2006). “The hidden vulnerability of megacities to natural disasters – Underground spaces” United Nations University News Release, 12 January 2005, accessed on 22 January 2006 from <http://www.unu.edu/hq/rector_office/press2005/pre01-05.html>.

See the website of the Yale Center for Environmental Law and Policy, “Environmental Performance Measuring Project,” accessed on 11 February 2006 from <http://www.yale.edu/esi/>.

United Nations Millennium Project (2005). Investing in Development: A Practical Plan to Achieve the Millennium Development Goals (New York: Earthscan Ltd.), accessed on 19 December 2005 from <http://www.unmillenniumproject.org/documents/overviewEng1-23LowRes.pdf>.

A framework of 8 goals, 18 targets and 48 indicators to measure progress towards the Millennium Development goals was adopted by a consensus of experts from the United Nations Secretariat and IMF, OECD and the World Bank. See “Road Map towards the Implementation of the United Nations Millennium Declaration”, report to the United Nations General Assembly (A/56/326), accessed on 15 February 2006 from <http://daccess-ods.un.org/TMP/2676152.html/>.

United Nations (2005). The Millennium Development Goals Report 2005 (United Nations, New York), accessed on 15 February 2005 from <http://unstats.un.org/unsd/mi/pdf/MDG%20Book.pdf>.

Regional Ministerial Meeting on Millennium Development Goals in Asia and the Pacific: The Way Forward 2015, 3-5 August, 2005 Jakarta, Indonesia.

“Improved water” refers to piped water, public tap, borehole or pump, protected well, protected spring or rainwater. Improved water sources do not include vendor-provided waters, bottled water, tanker trucks or unprotected wells and springs. United Nations Development Group (2003), op. cit.

The Millennium Ecosystem Assessment is an international initiative supported by the United Nations, designed to meet the needs of decision makers and the public for scientific information concerning the consequences of ecosystems change for human well being and response options. The assessment was conducted from 2001 to 2005 and its repeat is anticipated. See <http://www.millenniumassessment.org/en/index.aspx> accessed on 18 February 2005.

FAO (2004). State of Food Insecurity in the World 2004: Monitoring progress towards the World Food Summit and the Millennium Development Goals (Rome, FAO).

ESCAP is the secretariat for the North-East Asia Subregional Programme on Environmental Cooperation, an intergovernmental organization of which these countries are members.

UNEP (2003). DPR Korea: State of the Environment 2003 (Pathumthani, UNEP), accessed on 15 January 2005 from <http://www.unep.org/PDF/DPRK_SOE_Report.pdf>.

Based on United Nations Population Division data. United Nations Department of Economic and Social Affairs Population Division (2004). World Urbanization Prospects: The 2003 Revision, United Nations publication Sales No. 04.XIII.6 (New York, United Nations).

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Dahe, Q. (2005). “Climate change and Environmental Evolution in Western China and Response Strategy”, presentation at the 5th Ministerial Conference on Environment and Development in Asia and the Pacific Symposium on Global Change, Environment and Development, 24-25 March 2005, Seoul, Republic of Korea.

Ts.Borjigdkhan, Adyasuren (2005). “Impacts of Global Climate to the Environment and Development of Mongolia”, presentation at the 5th Ministerial Conference on Environment and Development in Asia and the Pacific Symposium on Global Change, Environment and Development, 24-25 March 2005, Seoul, Republic of Korea.

FAO (2004), op. cit.

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