COMMISSION CONCLUDES DISCUSSING ROLE OF INDUSTRY IN SUSTAINABLE DEVELOPMENT
Press Release
ENV/DEV/470
COMMISSION CONCLUDES DISCUSSING ROLE OF INDUSTRY IN SUSTAINABLE DEVELOPMENT
19980422 Afternoon Discussion Focuses on Freshwater ManagementCountries must assess the true value of water and put a price on it if they were going to ensure its efficient use, the Commission on Sustainable Development was told this afternoon as it concluded its discussion of the role of industry in freshwater management.
Prices charged for water rarely covered the costs of water infrastructure and delivery, Robert Slater, Senior Assistant Deputy Minister for the Environment of Canada said. Low pricing, however, led to over- consumption and depletion. Proper pricing would lead people to use it more effectively and would help ensure clean water supplies.
Pricing was a key issue in this afternoon's discussion on freshwater, between representatives of industry, government, trade unions and non- governmental organizations. Some speakers said that while water pricing could play an important role in water management, equitable pricing schemes were needed to avoid placing unfair burden on poor segments of societies or small businesses.
A number of speakers also stressed the social aspects of water management and said water had value outside of being used for drinking, cooking and agriculture. It had religious and cultural uses in many communities. Industries and governments should ensure that clean water sources were available for those uses.
Some speakers also stressed the need for governments, businesses and civil society to ensure that poorer segments of society received their fair share of water. Reginald Farley, Minister for Industry, Commerce and Business Development of Barbados, said that many countries found themselves challenged by the new demands fuelled by economic growth, not having the capacity to meet the needs. Choices made about water use, which met economic concerns, often did not reflect the equally critical needs of public health and the welfare of society.
The Commission will meet again at 10 a.m. tomorrow, 23 April, to consider its cross-sectoral theme: transfer of technology, capacity-building, education, science and awareness-raising.
Commission Work Programme
The Commission on Sustainable Development met this afternoon to continue its consideration of industry, focusing on the topic of freshwater management. It would also continue this morning's discussion on the topic of technology, cooperation and assessment. (For background information, see Press Releases ENV/DEV/467 of 21 April and ENV/DEV/465 of 20 April.)
Discussion on Technology, Cooperation and Assessment
Some speakers called for greater access to publicly owned technologies and said industries should focus more on sharing environmentally sound technologies with developing countries. They also called for better monitoring of voluntary codes of conduct for businesses. Trade unions and other groups must have an active role in oversight efforts.
A representative of non-governmental organizations (NGOs) said there should be more research on the effects of intellectual property laws on technology transfer. A number of speakers also said there were problems with assessment of technology because it was generally the industry that decided if a technology was environmentally sound. There was a need for more independent evaluation.
One speaker also suggested that the construction industry and its business practices should be examined thoroughly. Construction represented a large amount of the business activity in many developing countries, and they should be encouraged to use more environmentally friendly materials.
To conclude the discussion on technology, cooperation and assessment, Commission Chairman CIELITO HABITO (Philippines) said there were a number of proposals on how to move forward on the topic of technology transfer. There was a great willingness from all sectors to participate in further discussions.
Statements on Industry and Freshwater
JAMES OATRIDGE, Director of Environment and Corporate Control, Severn Trent Plc, United Kingdom, said his company and the United Nations Environment Programme (UNEP), had prepared a report on industry and freshwater, which was the result of a year-long analysis. More than 30 companies had participated in the study, and both his company and UNEP were in agreement on several important points. Both believed that prevention was preferable to remedial action; each understood that industry had technical competence, managerial skills and financial resources; and each was committed to protecting the natural environment.
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The common agenda on industry and freshwater identified in the study was an inclusive one, in which all sectors could participate, he said. Governments set the agenda and the private sector delivered the outputs. However, the framework conditions had to encourage private investment. A 10- point plan for agreement and action referred to in the study included the recognition that water was an economic good; industrial development was crucial for creating the wealth to sustain a water infrastructure; and governments needed to provide the enabling frameworks for private enterprise to play its part.
Freshwater issues could not be solved by a one-time provision of aid, he said. Developing freshwater and sanitation infrastructures helped alleviate poverty. Water infrastructures needed to be maintained and operated, ideally by catchment area. Some areas might initially require cross-subsidies between classes of consumers. Industry was capable of driving the creation of wealth on the back of water and sanitation investment, and thus industry was part of the solution, not the problem.
JOHN DANCHIRO, Timber and Woodworkers Union, Ghana, said his Union's dream was to find a way to save the forests. Ghana had been among the first countries to begin conservation programmes. However, its rivers and tributaries had been so polluted that its most important dam had dried up. As a result, the Government was rationing energy for six hours of every day. Just as all transfer of technology should be tailored to the specific needs of the region, Ghana needed more help in meeting its need for freshwater.
A programme to raise workers' awareness of the value of the forest had brought about positive effects, he said. Reforestation in Ghana was progressing, and the key to success of the reforestation programme lay in meeting a number of basic requirements. A strategic plan for intervention in a problem and a sustainable management campaign were needed. Collaboration at all levels to protect ecosystems was also necessary.
LYN BILLMANN-GOLEMME, Facilitator of the NGO Freshwater Caucus, speaking on behalf of the NGO Working Group on Industry and Freshwater, said industry, government and civil society all had distinct roles in the management of industry and water resources. Industry was an essential component of water resource management. Governments had to develop incentives for efficient water use. Civil society needed to participate, educate and inform itself.
Governments had to work with civil society and industry to develop agreements on water resource protection priorities and action, she said. Water quality standards had to be set and maintained and priorities regarding problems, such as polluted areas, need to be prioritized and treated. Health risks to civil society had to be addressed, and mechanisms to settle conflicts among water users had to be developed.
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Industry needed to institute practices and codes of conduct over such issues as balancing industrial water demands, she said. Industry also had to use its industrial expertise in research and development and in technology transfer, to ensure sustained freshwater development.
It should be recognized that environmental, economic and social goals were compatible, she said. Industry should invest, in partnership with government and civil society, in conservation in and transfer of technology to developing countries. While governments developed and implemented national policies for sustainable water use, national regulations and enforcement should be balanced with industry's voluntary initiatives.
REGINALD FARLEY, Minister for Industry, Commerce and Business Development of Barbados, said that for many countries, availability of water continued to present problems in terms of social and economic development, particularly as they diversified their economies. Given the growing interdependence of nations, a water-scarce developing world also had consequences on the developed world. The developing world remained a critical market for goods and services of the developed world. Depleted resources inherently restricted the potential of foreign investment and limited the capacity of the developing world to act as a continuous and growing market.
He said that some countries that have made improvements in the issue of access to freshwater found themselves challenged by the capacity to satisfy new demands fuelled by economic growth. Tourism, agriculture and increased urbanization, among others, had put increased stress on water resources. Tremendous population growth that had accompanied development in many countries also affected the availability of water. Choices made on water that met economic concerns often did not reflect the equally critical needs of public health and the welfare of society. Other topics that needed to be addressed were water quality and the special problems faced by small island developing States.
ROBERT SLATER, Senior Assistant Deputy Minister for the Environment of Canada, said that it was crucial for countries to begin to estimate the true value of water and put a price on that value. The pricing would vary, depending on availability and circumstances in a particular country. Water pricing was crucial to water management. Prices charged for water rarely covered the costs of water infrastructure and delivery. Low pricing, however, led to over-consumption and depletion. Water pricing could also have a disproportionate impact on the poor, and a pricing mechanism should be designed to avoid that situation. Although water was a difficult asset to value, valuing would lead people to use water effectively and would help ensure clean water supplies.
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Over 1 billion people in the world lacked access to clean water, he added, and that led to serious health and environmental problems. The role of industry was pivotal in valuing water, ensuring its purity and determining its use. The World Bank estimated that $600 billion was needed to improve water systems worldwide. For every investment made in improving water resources, there was the opportunity to promote wise water use. As nations invest in infrastructure, there was also the need for education to enable communities to make sound decisions on water use.
MARIA ARIAS, on behalf of women's groups, said that all people must work together to preserve the precious resource of water. Water was an essential component of human health, but chemicals continued to contaminate water supplies all over the world. The release of such chemicals destroyed water supplies and adversely affected peoples' food, health and welfare. Governments and industry have a responsibility to ensure quality water supplies. There was also a need for international guidelines for water management. Governments should be urged to put into practice a polluter-pay policy for cleaning up water supplies.
CARMEN YAMBERLA, representing indigenous peoples, said industries damage water resources through the release of hazardous materials. It was important to take into account management plans and pollutive business practices and work to change such practices. It should also be recognized that water was important, not only for drinking and commercial purposes, but also for its cultural value. It was used in religious and social activities, and provided an important source of recreation for communities. Governments, industry, and all actors should take a comprehensive approach to ensure clean and plentiful water supplies.
Discussion
Most of the discussion that followed centred on water being both an economic and social good, involving such related issues as agricultural use versus industrial, and use in the industrialized world versus in the developing world. Since water was a social good, one speaker said, governments, business and civil society were all responsible for making sure that the poor received their fair share. Industry needed to go into cooperative arrangements with some developing countries with water-related problems, such as Egypt.
There was a lot of capital available for managing freshwater in developing countries, another speaker said, but there had to be proper risk protection for companies that provided such services. Involvement had to be increasingly at the level of public/private partnerships. To attract investment, full value pricing should be used to include all costs in finding and delivering water to users. Governments had to accept that there were
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risks which had to be absorbed because private sectors could not, such as in the acquisitions of land. Furthermore, fluctuating currencies had to be factored into the risk. If those criteria were met, capital would be attracted to the development of freshwater resources in developing countries.
Another speaker, however, said a realistic price and not a full-value price should be asked for water. The whole question of sustainable development was to promote social and economic growth. Charging full-value price in many areas would force local businesses to close. Water was essential for life and was the engine of industrial development, another speaker said. Industry polluted, and the cost of that was death of victims. The polluter-pay principal should apply in such instances.
One speaker advocated the establishment of programmes to increase both regulatory controls and market incentives. Private public partnerships in freshwater and sanitation were becoming more common, he said, but the private sector could not give up its responsibility and oversight was needed. Industry had made great strides but the process of raising awareness with other business sectors had to continue.
While agriculture was the biggest user of water, a speaker said, the question was not of water use but efficient use. Industry wasted a lot of water, as did industrial agriculture. Agriculture had huge water-related hidden costs and subsidies; even small cuts could result in great gains. In the developing world, farming was a major industry. In industrial regions, organic watershed models of management were re-emerging, involving all stakeholders on a small scale. Could industry apply the small-scale model to the large? he asked.
Some speakers highlighted problems relating to pollution of farmlands due to industrial development and transboundary pollution from heavily industrialized countries to the less industrialized. Inadequately treated urban wastewater was also a problem, and in some cases a larger problem than industrial pollution. Also, there was ample evidence that, if water was free, society would continue to misuse it and water resources became depleted. Those who proposed fair value price for water used 80 per cent of the water in their countries. In developing countries, 80 per cent of the water was used for agriculture, which fed all people.
A number of speakers said there was a need to promote proper practices in communities of developing countries in order to ensure safe drinking water. Waste disposal in some communities was very pollutive and wasted water. Proper infrastructure for waste disposal was needed, as well as education to create proper sanitation standards.
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The approach to pollution should differentiate between prevention, control and remediation or treatment, another speaker said. Current international regimes did not make those distinctions, and there was no correlation between pollution and cleaner technology. All speakers stressed the need for cooperation at all levels and all sectors, including from training to promotion of good conservation practices. It was also stressed that cooperative action should include all sectors, including local people as active participants. The expertise of indigenous people in regard to ecosystems should also be recognized. Partnership between government and developing countries needed to be examined. It was also suggested that today's dialogue should be carried forward into national action.
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