COMMISSION ON SUSTAINABLE DEVELOPMENT OPENS EIGHTH SESSION AT HEADQUARTERS

Press Release
ENV/DEV/537

COMMISSION ON SUSTAINABLE DEVELOPMENT OPENS EIGHTH SESSION AT HEADQUARTERS

The Commission on Sustainable Development opened its eighth session this morning, with Under-Secretary-General for Economic and Social Affairs Nitin Desai saying that he hoped the session’s outcome would lead to the further implementation, at the local, national and regional levels, of Agenda 21, the programme of action adopted at the United Nations Conference on Environment and Development (UNCED) (Rio de Janeiro, 1992).

Mr. Desai set out the expectations for the two-week session, as well as elaborated on the subjects for consideration -– land and agriculture, finance, follow-up on the Intergovernmental Forum on Forests and preparations for the 10-year review of UNCED. Finance, he said, was among the areas in which the degree of progress achieved since 1992 left a lot to be desired. The extent to which support was expected had not been forthcoming. He added that Agenda 21 was the only intergovernmental agreed text on trade and environment.

The Chairman of the Commission, Juan Mayr Maldonado (Colombia), said that the Commission provided a broad framework in which ideas from various sectors and different ways of thinking could be shared. It was an ideal time to make comments and seek solutions on topics of great importance, such as trade, agriculture, economic growth and financing. Dialogue on many of the topics had been blocked. Nothing was moving and it was, therefore, good to have the time to participate in a dialogue and to make recommendations.

Also this morning, the Commission elected Abderrahmane Merouane (Algeria) as one of its Vice-Chairmen and decided that Vice-Chairman Choi Seok-Young (Republic of Korea) would also serve as Rapporteur. It also adopted its agenda and organization of work, as orally amended.

Further, the Commission heard statements from Patrick McDonnell (Ireland), Co-Chairman of the Inter-sessional Ad Hoc Working Group on Integrated Land Management and Agriculture and Mr. Choi (Republic of Korea), Co-Chairman of the Inter-sessional Ad Hoc Working Group on Financial Resources and Mechanisms and on Economic Growth, Trade and Investment, on the results of those meetings.

Presentations were also made by the representatives of the Netherlands, Australia, Switzerland and Honduras. In addition, Lowell Flanders, Department of Economic and Social Affairs, presented the results of the Forum of National Sustainable Development Councils.

The Commission will meet again at 3 p.m. today to hold its multi- stakeholder dialogue on ”Choices in agricultural production techniques, consumption patterns and safety regulations: potential threats to sustainable agriculture.”

Sustainable Development Commission - 2 - Press Release ENV/DEV/537 2nd Meeting (AM) 24 April 2000

Commission Work Programme

The Commission on Sustainable Development met this morning to begin its eighth session. It was expected to elect its officers, adopt its agenda and organization of work and hear introductory statements. It was also expected to hear presentations of the outcomes of the ad hoc inter-sessional working groups and other inter-sessional activities, on which it had before it two reports. (For further background on the two-week session, see Press Release ENV/DEV/536 issued on 20 April.)

The Commission had before it the report of the Inter-sessional Ad Hoc Working Group on Integrated Land Management and Agriculture (document E/CN.17/2000/11), which met in New York from 28 February to 3 March. The report contains possible elements for draft decisions on the land and agriculture issues, which could serve as starting points for further discussion during the current session, as well as summaries of discussions that will serve as reference material on the given issues.

According to the report, the challenge is to develop and promote sustainable and productive land-use management systems as part of national strategies for sustainable development. A further challenge is to protect critical resources and ecosystems through balancing land, water and other natural resource uses with the participation of stakeholders. Social and health aspects of land use deserve particular attention and should be integrated into the overall planning process. Priorities for future work include prevention and/or mitigation of land degradation, access to land and security of tenure, stakeholder participation and international cooperation.

The report states that the goals of integrated planning and management of land resources include protection of the environment, economic development, poverty eradication, employment creation, conservation of natural resources, food security, protection of critical ecosystems and biodiversity, and ensuring access to land for vulnerable and marginalized groups. A number of delegations described their national efforts to develop systems for integrated planning and management of land resources, including decentralization of land management to local levels, with broad stakeholder participation.

With regard to agriculture, the report states that the major objective of sustainable agriculture and rural development is to enhance food security in an environmentally sound way, so as to contribute to sustainable natural resource management. Food security, although a policy priority for all countries, remains an unfulfilled goal. Food security and poverty are interrelated, and sustainable progress in poverty eradication is one of the critical elements in improving access to food. It remains essential to continue efforts for poverty eradication, through, among other things, capacity-building to reinforce local food systems and improving food security. The concept of sustainable agriculture and rural development offers such an approach.

Priorities for future action include implementation of SARD goals, access to resources, poverty eradication, financing for sustainable agriculture and rural development, technology transfer and capacity-building and biotechnology. A number of delegations described their national efforts to attain food security for their populations and their efforts to reduce the number of undernourished people. Agriculture sector policy reforms were meant to provide a stable legislative framework and to guarantee ownership of, and access to, productive resources, especially on land; improve the functioning of markets; and sanction property rights and create risk-reduction, among other things. The multifunctional aspects of agriculture were emphasized by some delegations, while some underlined that consensus on the concept had not been achieved.

The importance of integrated planning and management of land resources, according to the Secretary-General’s report (document E/CN.17/2000/6), derives from the unprecedented population pressures and demands of society on land, water and biological resources, the increasing degradation of resources and the threats to the stability of ecosystems and the environment as a whole. Efforts to increase productivity through intensification and technology development have in some cases led to increasing environmental and health impacts.

The challenge, the report states, is to develop and promote sustainable and productive land-use systems and to protect critical resources and ecosystems by balancing land, water and other resource uses, providing a basis for negotiation, participatory decision-making and conflict resolution among stakeholders, and by providing an enabling political, social and economic environment.

The magnitude of landscape-level changes and the increasing intensity of urbanization, industrial and agricultural production are inducing changes in global systems and cycles that underpin the functioning of ecosystems, the report continues. These changes represent profound and far-reaching environmental threats. Global warming from the build-up of greenhouse gases is the best known example, with potential for large-scale disruption of natural ecosystems, agriculture, and human settlements due to changes in rainfall, temperature patterns and rising sea levels.

Technological advances have made possible considerable progress in developing databases on land resources and land use, in processing and integrating information from multiple sources, and in developing more effective analysis and planning tools. A further advance is the use of the “ecosystem approach” as a framework for action under the Convention on Biological Diversity and as a strategy for the integrated management of land, water and biological resources.

Knowledge of how land resources are used and by whom remains limited in many countries, continues the report. Land-tenure arrangements as well as gender and other socio-economic differences are determinants of access to and use of land and water resources. Resource-poor households, frequently female- headed, are often pushed onto increasingly fragile lands through displacement and fragmentation. Insecurity of tenure discourages investments in land improvements, since the user may not reap the long-term benefits, and the increased land value makes it more attractive for others to seize.

According to the report, efforts so far are inadequate to meet the need for land conservation and rehabilitation and the increasing threats to ecosystems and resources, especially in developing countries. For example, several countries have prepared national action plans to combat desertification, and several regional bodies, particularly in Africa, have drafted regional action plans. However, in many cases, financing for the implementation of these plans has not materialized. Macroeconomic and lending policies are still often biased in favour of development activities in urban and peri-urban areas and on agricultural lands with high potential.

At the national level, three trends can be observed: the development of more comprehensive and longer term national strategies for sustainable land use; growing decentralization and devolution of power in land-use planning and management; and broader consultations and public participation in land-use planning and decision-making. While decentralized and participatory decision- making promotes more effective and balanced land-use planning, there can be considerable delays in finalizing and implementing the plans because of the many steps involved in their clearance.

There is a growing awareness of the need to improve land-tenure institutions in many countries, but the challenges are great, the report states. There is a need to ensure legal and social rights for traditional “owners” and users of areas with various forms of communal tenure. Also, tenure security by itself does not ensure sustainable land management by the land user, as shown by the mixed results of some land reforms. The problem is not merely providing tenure security but providing users with the capacity to use their land-tenure rights in ways that enhance both sustainability and rural development, according to the report.

Obstacles to the implementation of Agenda 21 with respect to land resources vary among countries. Limiting factors include lack of an enabling environment, inadequate definition and enforcement of property rights and insecurity of land tenure, institutional barriers and sectoral interests, and lack of financial and technological means, human resources and skills. At the national level, the priorities are to remove these basic constraints and pursue the objectives set out in Agenda 21. For the United Nations system and other international and bilateral development organizations, the challenge is to improve support for these national endeavours.

In setting priorities for land-use planning and management, the report states that it might be useful to identify and assess “hot spots” of land degradation as a focus for the limited resources available. A focus on critical problems, on areas where population pressure is causing land degradation and conflict, and on “critical interfaces”, or boundaries between different land uses, is essential to avoid irreversible damage and major socio-economic problems. Within the broad range of issues addressed in Agenda 21 and related conventions, the critical areas that stand out as future challenges and priorities are mentioned in the report.

The addendum on combating deforestation (document E/CN.17/2000/6/Add.1) states that, compared with changes in the previous decade, it appears that the rate of deforestation might be decreasing. Forest cover change includes losses due to the conversion of forests to agricultural land in developing countries, as well as increases due to forest growth on abandoned agricultural land, particularly in developed countries. Forest fires were among the main cause of forest destruction in 1997-1998. While drought associated with the unusually intense El Niño weather pattern contributed to the increased number, size and duration of fires, land-use practices were clearly major causes of forest fires.

There has been an unprecedented level of attention and commitment to the concept of sustainable forest management from the global to the local levels, by both governmental and non-governmental organizations, the report states. They all incorporate the fundamental elements of sustainable forest management -- extent of forest resources, forest health and vitality, productive and protective functions of forests, socio-economic benefits and needs, and legal, policy and institutional framework.

According to the addendum, greater emphasis on environmental protection, the conservation of biological diversity and recreation has reduced the area of natural forest available for wood supply, and has increased reliance on forest plantations as sources of wood supply in some countries. Plantations help to alleviate potential future wood shortages, but the challenge is to achieve this while maintaining biodiversity and minimizing damage to the environment and the social fabric of rural communities.

Certification and the associated issue of labelling remain controversial subjects in forestry, the report states. Certification seeks to link trade in forest products to the sustainable management of forests, by enabling producers and consumers to recognize products made from timber coming from sustainably managed forests. To date, its actual impact on trade has been small and very country-specific. The volume of certified products entering the market is relatively small due to limited supply, lack of demand and the fact that most of the wood harvested does not enter international trade, but is used domestically. A critical but unanswered question is whether certification will, as originally intended, significantly contribute to improved forest management in developing countries.

One of the important challenges, according to the report, is to improve links between forest policy and ground-level implementation. Also, advantage should be taken of the opportunities offered by electronic communication technology and data processing for improved accessibility to information for planning and decision-making. At the international level, it is desirable to develop a global forest information system to disseminate and make available information to all users. It is particularly urgent to provide assistance to countries with low forest cover.

Desertification and drought remain crucial issues for the sustainability of land use, having economic and social consequences and causing environmental degradation, according to another addendum to the Secretary-General’s report (document E/CN.17/2000/6/Add.2). The problems are worldwide, with more than 100 countries affected, but are particularly evident in the poorest regions of the developing countries, especially in Africa. Recent estimates suggest that almost 1.6 billion people live in arid and semi-arid countries.

The report addresses the following issues: improving knowledge, understanding and assessment of land resources; present land use and land degradation; developments and trends in integrated land resource planning and management in drylands; and emerging challenges and priorities for sustainable land resource management. As has been estimated, nearly half of the world's poor people live in dryland areas. However, drylands may be seen as potential areas for agricultural intensification, if water resources can be mobilized.

The report states that water resource limitation, both in quantity and quality, is intrinsically related to drylands. Most dryland societies are strongly dependent on agriculture, despite the risks involved. Drought mitigation and prevention strategies aim at helping people "learning to live with drought". The launching of decentralized drought preparedness and mitigation programmes contributes to the capacity of local communities to plan, develop and manage their own desertification and drought responses and strengthens their responsibility for the management of their land and water resources.

One of the main challenges is to identify reliable indicators on desertification status and trends to assess the extent of the problem, forecast the evolution and monitor the impact of the various responses. Physically, soil and terrain degradation or loss is the most reliable and measurable criterion of desertification. Although socio-economic indicators, such as migration, income levels and conflict, may not be uniquely related to desertification, they may serve as early warning signals that desertification processes are beginning and may provide a useful monitoring framework for assessing the impact of related actions.

During the third session of the Conference of the Parties to the United Nations Convention to Combat Desertification in Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa (Recife, Brazil, November 1999), there was a general call for integrating energy, water management and forestry-related issues into a comprehensive assessment framework on land degradation. Special priority was given to the development of early warning systems and to an enhanced role for traditional knowledge and indigenous people in the decision-making process.

According to the addendum on sustainable mountain development (document E/CN.17/2000/6/Add.3), mountain ecosystems contain an integrated complex of natural resources that are closely linked in space and time. Those who inhabit the mountains generally depend directly on many of these resources for their livelihoods and tend to utilize and manage them through a combination of land- use practices such as agriculture, forestry and livestock production.

Mountain communities are among the world's poorest and face a number of difficult development challenges due to specific mountain-related conditions, including limited land resources, marginal agricultural conditions, isolation, and scant equipment and infrastructure. Food insecurity is a serious problem in some mountain regions and a major impediment to achieving other development and conservation objectives. Agriculture and food production are expected to benefit significantly from research on biological diversity in mountain areas. Many current efforts to improve the management of water resources for food production are building on a number of traditional technologies and practices.

Mountain areas are known to be important but fragile reservoirs of biological diversity, the report states. In the tropics they often contain a greater concentration of genetic resources than lowland forest ecosystems, with typically higher levels of endemic species. The issue of how to conserve and sustainably use these resources in a variety of settings, in both industrialized and developing countries, is a major challenge today. Mounting poverty and increasing population growth in some developed and developing countries is creating unsustainable pressure on already endangered plant and animal species. The illegal trade in animals is also having a major impact in some mountain regions and is more difficult to control in rough, mountain terrain, where accessibility is often poor.

Protected areas play a critical role in the conservation of biological diversity in mountain regions -- almost one third of the designated natural World Heritage Sites are protected mountain areas. While protected area management activities in mountainous regions have been reinforced in many countries, establishing parks and protected areas without paying adequate attention to rural development concerns has often led to failure.

The importance of mountain regions for a sustainable supply and quality of fresh water has been increasingly recognized as a central issue in recent years. An important issue related to fresh water is hydropower production in mountain areas. Large hydropower schemes have become quite controversial. The public is increasingly aware of their potential threat to valuable and unique habitats and of the socio-economic disruption associated with the displacement of local populations. Consequently, with newer hydropower projects, monitoring of their impacts has increased.

Tourism has become a major issue for mountain areas in both developing and industrialized countries, the report states. As pointed out at the General Assembly’s nineteenth special session, tourism is one of the world's largest industries and fastest growing economic sectors. Although the impacts of tourism in mountain areas can be very positive in economic terms, the environmental and social consequences can be very damaging, if not carefully managed. Ecotourism activities are gaining importance in many mountain regions and provide an opportunity for diversification of sources of income and sustainable livelihoods for the mountain population.

Some of the most significant recent progress in implementing the "mountain agenda" has been in the area of networking and information exchange. The Mountain Forum, established in 1995 and the main institutional mechanism for networking on mountains, has promoted greater awareness of critical mountain issues and fostered mutual support for greater action at the local level. At the international level, an important mountain conference, entitled the "World Mountain Forum", will be held in June 2000 in France. The event is meant to provide an opportunity, primarily for representatives of world mountain communities, to meet and discuss issues of common interest and to establish networking connections for continued exchange.

Investment in the sustainable development of mountain areas is still inadequate, in terms of both domestic public spending and official development assistance (ODA). Funding through global and regional mechanisms, such as the Global Environment Facility and the regional development banks, needs to be mobilized in ways that address more directly the specific needs and concerns of mountain regions rather than through more traditional funding approaches that simply include mountain areas among others in national development initiatives. There is also a need to look at the potential of using more innovative mechanisms, such as debt-for-nature swaps, which have already proved to be very useful and practical.

The International Year of Mountains (2002) provides an opportunity to mobilize the resources, both human and financial, on a sustained level, that are needed effectively to implement sustainable mountain development and conservation, adds the report.

The report on conservation of biological diversity (document E/CN.17/2000/6/Add.4) illustrates some areas where progress has been made in understanding and addressing biodiversity issues as an integral part of land resources planning and management, taking into account the strategic objectives of food security, socio-economic development and environmental conservation at the global, national and local levels. Substantial progress can be made through promoting the further development and application of landscape and ecosystem approaches for the conservation and sustainable use of biodiversity, including genetic resources for food and agriculture, and the natural resource base.

A challenge in the years to come will be to place a value on ecological functions and services as an incentive for their maintenance. Greater attention is needed to enhance recognition, improve information and knowledge of biodiversity and the goods and services sustained by urban and peri-urban environments, and to develop participatory supporting strategies, plans and actions.

Further efforts are required to ensure the effective participation of concerned stakeholders in all levels of priority-setting and decision-making regarding biodiversity and land resources planning and management, the report states. This requires improved cross-sectoral cooperation and inter- institutional collaboration, including among government bodies, civil society groups and intergovernmental organizations.

Efforts are needed in all countries to ensure that biodiversity issues are taken fully into account in land resources planning and management through mainstreaming national biodiversity strategies and action plans with national sustainable development, environmental and sectoral strategies. Land-related policies and legislation and related incentive and benefit-sharing measures, such as security of tenure and access to land and other natural resources, including genetic resources, should be reviewed and revised, as appropriate, to address biodiversity concerns.

The report of the Ad Hoc Inter-sessional Working Group on Financial Resources and Mechanisms and on Economic Growth, Trade and Investment (document E/CN.17/2000/10) contains the outcome of meetings held from 22 to 25 February in New York. Two types of documents were produced on the two groups of issues -- possible elements for draft decisions/resolutions and the Co-Chairmen’s summaries of the discussions.

Regarding possible elements for a draft decision at the eighth session on financial resources and mechanisms, the report states that it is important that countries approach sustainable development through a holistic approach, in view of the interconnectedness of the trade, financial, environmental and social aspects of sustainable development. In general, the financing for the implementation of Agenda 21 will be met from domestic resources. Yet, for many developing countries, ODA is a main source of external funding, and substantial new and additional funding for sustainable development and the implementation of Agenda 21 will continue to be required.

The Commission will continue to address financial resources and mechanisms as an overarching issue. Its next comprehensive discussion will take place at the 2002 review of the United Nations Conference on Environment and Development (UNCED)(Rio de Janeiro, 1992), which will benefit from the outcome of the high- level event on financing for development, to be held in 2001. Priority areas for future work include: promotion of international finance for sustainable development; mobilization of domestic financial resources for sustainable development; exploration of innovative financial mechanisms; and improvement of institutional frameworks and promotion of public and private partnerships.

On possible elements for a draft decision on economic growth, trade and investment, the report states that there should be a balanced and integrated approach to trade and environment in pursuit of sustainable development. That approach should take into account the economic, environmental and social aspects, as well as the different levels of development of countries. It should do so without undermining the open, equitable and non-discriminatory character of the multilateral trading system or creating any disguised barriers to trade.

It will be a particular challenge, continues the report, for developing countries and countries in transition to stimulate domestic investment and attract foreign direct investment to achieve sustainable development. At the same time, the international community should strive to avoid the risks that can be associated with the volatility of short-term private capital flows and to enhance the contribution that investments can make to sustainable development. Priorities for future work include promotion of sustainable development through trade and economic growth, making trade and environment mutually supportive, promotion of sustainable development through investment, and strengthening institutional cooperation and promotion of partnership.

The summary of the discussion states that trade and investment are essential for sustained economic growth and sustainable development. Some delegations emphasized that trade and investment policies must, however, be complemented by policies that provide for high levels of environmental and social protection and enforcement of these laws at the national level. While some developing countries have benefited from globalization and trade liberalization, there is still a need to address the issue of marginalization, and to support the integration of developing countries into the world economy.

Some delegations stressed the need for effective environmental policies to maximize the contribution of trade liberalization to sustainable development, the report continues. There is also a need to consider links between trade liberalization and the social dimensions of sustainable development. Technical assistance and capacity-building initiatives in favour of developing countries must be identified. There is a need for improved coherence and coordination between donors and international organizations.

As agreed in Agenda 21, developed countries should take the lead in addressing unsustainable production and consumption patterns, taking into account the principle of common but differentiated responsibilities. Several delegations also recognized the importance of keeping the public informed and engaging in regular dialogue between governments and stakeholders.

Also before the Commission was the report of the Secretary-General on financial resources and mechanisms (document E/CN.17/2000/2), which reviews the progress achieved in the implementation of the objectives for financial resources and mechanisms set out in Agenda 21 and provides inputs for its consideration at the current session. Section II of the report examines recent developments and new policy approaches in external finance, with an emphasis on ODA and private capital flows.

Section III turns to the discussion of domestic finance and sustainable development, focusing on the integration of environmental finance into mainstream public finance and the use of policy instruments and measures. The fourth section of the report deals with innovative mechanisms in sector finance, with an emphasis on the energy, water, transport and forestry sectors.

In the wake of the financial crisis that started in East Asia and eventually spread to many emerging economies during 1997-1998, there have been several significant developments in the financing of sustainable development, states the report. Although official development finance has risen from its level in 1996, that increase -— of about $15 billion -— has not been sufficient to prevent a sharp drop in the total net resource flow to developing countries in 1998. Further, due to the financial crisis, developing countries have experienced a steep decline in private financial inflows, in particular of bank lending, since 1997.

The geographical distribution of foreign direct investment inflows to developing countries is still highly skewed and private capital flows are still concentrated in a small number of countries, the report continues. In 1998, five countries received 55 per cent of all the inflows to developing countries, while less than 1 per cent of that total was shared by the 48 least developed countries.

The report states that, in assessing the future role of ODA, the impact of globalization on public and private flows to developing countries and the continuing debt problems of the poorer developing countries should be taken into account. With regard to private capital flows, the increasing flows to developing countries are still limited to a narrow range of recipients. The skewed distribution of those resources in favour of the more advanced developing countries has implications, particularly for efforts to advance the goals of sustainable development in the poorer countries.

It was important, the report continues, for donors and developing countries, particularly the least developed countries and other countries in sub-Saharan Africa, to improve the effectiveness of aid. This could be done, for example, by better aid coordination and management, and more efforts to deter corruption and to ensure that public sector investments do not run counter to stated environmental and social objectives of sustainable development.

It will be an important challenge, states the report, to attract more foreign investments and, at the same time direct them to sustainable development activities. It is crucial that developing countries ensure that foreign direct investment contributes to sustainable development by paying due attention to its impact on environmental, social and economic goals. It is important to integrate environmental and social considerations into strategies and plans for national development, especially in those sectors having a significant environmental impact, such as transport and energy.

In the case of investments where the risk of environmental damage is significant, investors can be asked to put up performance bonds or other guarantees that remedial steps will be taken should damage occur. There should also be clear rules setting out private responsibility for damage to the environment from economic activities. Further, to promote greater transparency and public participation in ensuring environmentally sound project design and operations, there should be a supportive legal environment to enable non- governmental organizations and major stakeholders to act as constructive and independent partners.

The fast pace of globalization, states the report, the competition for foreign direct investment and the sheer size of many transnational corporations can make it difficult for a host country acting alone to set in place adequate environmental controls over incoming foreign direct investment. Therefore, pressure is mounting on other stakeholders, including investors' home countries and international actors, to take a larger share of responsibility in that area.

According to the report, there is an increasing amount of experience with environmental taxes and charges in both developing and developed countries. While those instruments can improve cost-effectiveness and confer positive environmental effects, their implementation requires strong institutions in the financial and environmental sectors. A major barrier to the use of environmental taxes and charges in developing countries is the lack of institutional capacity. There are also complex tax design requirements and the mainstream public finance agencies have limited experience in dealing with the introduction of such taxes. On the other hand, tax fraud is more difficult with environmental taxes than with income taxes, which may provide an additional benefit to their use.

Private sector investment can be effective in promoting economic growth, and can have positive social or environmental effects, the report states. It is important for governments to provide the necessary framework for sustained private investment, including macroeconomic, legal and environmental policy frameworks that are clear, credible and stable. It is important to note that not all private domestic investment will assist countries in achieving sustainable development. Also, lack of public support for environmental protection can also be a major stumbling block in encouraging private investment in sustainable development.

Also before the Commission is the report of the Secretary-General on economic growth, trade and investment (document E/CN.17/2000/4), which focuses on how the integration of markets on a worldwide scale may influence economic growth, the international distribution of the gains from growth and the environmental implications of growth. It also describes ways in which the traditional objective of economic growth can be geared towards sustainable development through environment-related trade policies and environmental practices of transnational corporations.

Also, there is a need for building confidence and consensus on a trade, environment and development agenda that would balance the interests of both the developed and developing countries. Such an agenda should be based on the objectives set out in the Rio Declaration on Environment and Development, Agenda 21 and the Marrakesh Agreement establishing the World Trade Organization (WTO). It should seek to enhance the contribution of the multilateral trading system to sustainable development and to find solutions outside the WTO framework.

According to the report, UNCED, which linked environmental policy with development, emphasized that for effective environmental policies it is necessary first and foremost to address poverty and inequality issues. The proposed scenarios call for developed countries to take the lead in changing production and consumption patterns to provide environmental space for the developing countries, as well as promoting technology transfer and financial assistance. They also require that interactions between the developed and developing countries in trade, science, technology and finance take the form of partnerships, based on the principles of the right to development and the rights of future generations.

The development, diffusion and effective use of modern, eco-efficient technologies, states the report, will be the most important factor in developed countries for reducing the material and pollution intensity of production. Despite the huge potential of technological progress, it is unlikely that the resulting material and resource savings will lead to an absolute decline in resource use in developed countries. In developing countries as well, restructuring, eco-efficiency and changes in consumption patterns play a role in determining the environmental impact of economic growth.

However, the report continues, there are two other key factors that contribute to environmental stress -– poverty and high population growth. Most of these factors lead to increasing environmental impacts with economic growth in the South. The lack of modern, environmentally sound technology is preventing most developing countries from improving eco-efficiency of production and creating favourable conditions for technology “leapfrogging.” Significant changes in consumption patterns are unlikely to occur in the light of the catch-up demand for many consumer goods and the massive poverty in many developing countries.

Because major environmental challenges also emerge from lack of growth, it is important first and foremost to meet people's basic minimum consumption needs, adds the report. Also, the technology needed to leapfrog into environmentally sound production and consumption patterns is not easily accessible to developing countries.

Ushering in global environmental sustainability will demand a much higher degree of organization and effective decision-making than at present, according to the report. It will entail far higher levels of global cooperation in such areas as technology development, dissemination of technology and changes in consumption patterns.

There is a general consensus that trade and environmental policies can complement each other. However, it needs to be ensured that environmental measures do not act as unnecessary obstacles to trade or are protectionist in intent, and that trade rules do not stand in the way of adequate environmental protection. In addition, although there is wide agreement that there should be a harmonious relationship between multilateral environmental agreements and the multilateral trading system, there is no agreement on whether any modification of WTO rules is needed.

According to the report, the level of environmental degradation resulting from industrial activity is closely linked to the production efficiency of firms and their capacity to innovate. Environmental damage tends to be greatest in low-productivity operations working with obsolete technology, outdated work methods, poor human resource development, inefficient energy use and limited capital. To a large extent, environmental performance is a function of the use of clean technology within an efficient environmental management framework.

The demands for change from transnational corporations regarding the environmental impact of their operations on the environment is reflected in the increased stringency of national environmental regulations in a growing number of countries. This concern has also found its way into international commitments, the most prominent of which is Agenda 21, which contains a number of provisions across five chapters that are directly addressed to transnational corporations.

For the developing countries, continues the report, the issue of environmental protection is also about time or rather lack of it. The pressure of delivering high growth rates and attracting foreign direct investment means that policy decisions have to be taken in response to immediate output and employment objectives. The lack of resources and expertise in monitoring and enforcement, and sometimes the inability to work collaboratively with transnational corporations, add to the problem.

Also before the Commission was a note verbale dated 14 February from the Permanent Mission of Kenya to the United Nations addressed to the Secretary- General (document E/CN.17/2000/9) transmitting the Chairman’s summary of the Fifth Expert Group Meeting on Financial Issues of Agenda 21, held at Nairobi from 1 to 4 December, 1999.

Statements

In his introductory statement, NITIN DESAI, Under-Secretary-General for Economic and Social Affairs, set out the expectations for the session, as well as the four broad areas of the agenda. The first issue was land and agriculture, which was part of the process of focusing the Commission, at the sectoral level, on the interface of environment and development. That was the only way to give practical expression to the link between environment, economy and social development. The integration which sustainable development called for required integration across different actors and stakeholders. He hoped to see an outcome that would lead to the further implementation of Agenda 21 at the local, national and regional levels.

Finance was the second issue to be addressed, he continued. It was an area in which the degree of progress achieved since 1992 left a lot to be desired. It must be accepted that the extent to which support was expected had not been forthcoming. While private investment flows had increased, it was necessary to ensure that such flows be guided by sustainable development principles. The discussions must move beyond mere rhetoric into genuine agreements. The Commission would also discuss trade, investment and economic growth. So far, the only intergovernmental agreed text on trade and environment was Agenda 21.

The third issue, he said, was the follow-up to the Intergovernmental Forum on Forests. The major issue was to consider how to continue addressing that issue, while keeping in mind the activities already undertaken. The fourth issue to be addressed was preparations for the “Rio+10” to be held in 2002. The sooner the process was begun, the better. While decisions would be taken in the General Assembly, the Commission was a vital stage in those preparations. When it came to sustainable development, there was an organized intergovernmental process –- the Commission, as well as other bodies -- to contribute to the preparation process.

PATRICK McDONNELL (Ireland), Co-Chairman of the Inter-sessional Ad Hoc Working Group on Integrated Land Management and Agriculture, presented the report of that Group. Integrated land management and promoting sustainable agriculture and rural development were the two main themes addressed. The Group had presented summaries of its discussions and identified draft elements for a possible decision by the Commission at its eighth session. They were only draft elements and there were many points that were still open. Among the principal issues were access to land and security of tenure, especially for women, indigenous people and the landless, and stakeholder participation, as well as food security and poverty eradication. He expected more draft elements to emerge from the multi-stakeholder dialogues and the high-level debate to be held this week. He hoped to achieve an objective that would further the work of Agenda 21.

CHOI SEOK-YOUNG (Republic of Korea), Co-Chairman of the Inter-sessional Ad Hoc Working Group on Financial Resources and Mechanisms on Economic Growth, Trade and Investment, said that the Group had produced working papers on the three sets of issues it had considered. Possible elements for a draft decision were identified for finance. The next comprehensive review of financial resources would take place at the 2002 review of UNCED. The Group had also identified four priority areas for future work. On the second cluster of issues -- trade, investment and economic growth -- it had identified four priority areas. The possible elements for a decision by the Commission were not by any means agreed to, but would serve as a good basis for a draft decision to be adopted next week.

HANS ALDERS (Netherlands), Chairman of the inter-sessional event, "Cultivating Our Futures -- Food and Agricultural Organization (FAO)/Netherlands Conference on the Multifunctional Character of Agriculture and Land" held in Maastricht from 12 to 17 September 1999, said that the Maastricht Conference was important in the process of furthering the progress on subjects such as sustainable agriculture and rural development.

He said the main challenge of the Conference was to identify concrete policy options and practical methods in order to make progress in reaching the goals and targets. A starting point of the organizers of the Conference was the growing international understanding of the importance of the relationship between agriculture as a producer of food and fibre, on the one hand, and, on the other hand, the importance of agriculture for the social, economic, biological and physical condition of production units, communities and countries. The traditional view of sustainable agriculture was that it was a means of producing food and generating income, while minimizing negative environmental impacts. That view had increasingly been replaced by a more complex and positive vision on sustainable agriculture.

Another challenge of the Conference was to identify ways of maximizing positive effects on reaching goals and targets of sustainable agriculture and rural development and food security, he said. Two principal tasks of the Conference were viewing progress towards the principles contained in the Rio Declaration and identifying the main issues to be addressed in the future, taking into consideration the continually evolving nature of agriculture. The Conference provided an opportunity for participants to increase the understanding worldwide of the multiple functions of agriculture and their contribution to reaching the goals and targets of Agenda 21 and the plan of action for the World Food Summit.

The Conference highlighted the need to establish an agricultural network, which integrated the policy and institutional circumstances at all levels within a country, he said. It also highlighted the need to give high priority to research, training and extension services and capacity-building in that field, including local and indigenous knowledge.

BRUCE LLOYD (Australia) said that the International Land Care 2000 Conference held in Melbourne in March 2000 highlighted the role that local communities could play in fostering sustainable resource management. Thirty- five per cent of Australian farmers were involved in land care. Fifteen years of land care management had seen considerable increase in both the awareness and progress made in implementing solutions. The objectives of the Land Care Conference were to enable an international exchange in experiences in land care and to explore national and international challenges facing rural communities in managing resources. The Conference explored five main themes, including climate change and community participation in land care.

LINN LOCHER, observer of Switzerland, presented a brochure prepared by the Swiss Agency for the Environment that described policy instruments for ways to achieve sustainable agriculture. Themes highlighted in the brochure included the reduction of trade barriers, environmental barriers and supplementing farmers’ incomes. Switzerland wanted to share information on its work towards achieving sustainable agriculture, because that would contribute to international progress in the field. Only by setting international standards would sustainable agriculture products be competitive in world markets.

Mr. LLOYD (Australia) presented the Bathurst Declaration, a result of meetings held last October on land management. He said that the 1980s had seen a different twist in the concern for land use, which resulted in the emergence of two major issues -– land degradation and social equity. There was a growing need for comprehensive information on land use. Current land administration systems had generally failed to support sustainable development and the way forward was unclear. While the various United Nations summits had recognized the importance of land administration systems in achieving sustainable development, they had not put forward any clear models for adoption.

The objective of the Bathurst Declaration was to address that concern, he continued. Delegates confirmed the need to re-engineer land administration systems and the outcome was a declaration on land administration for sustainable development. Among the topics discussed during the meeting were the dynamic humankind/land relationship, land tenure and land administration. To achieve sustainable development, smarter use of land use information was needed, which would result in better land administration systems and better use of land. The momentum of that meeting would lead to lasting progress if all actors worked to capitalize on the momentum of the Declaration. There would be a workshop conducted today at 1:15 p.m., at which he would expand on the details of the Declaration.

MARIO RIETTI (Honduras) said that, in Central America, sustainable development meant the environment and much more, particularly after the experience of Hurricane Mitch. International commitments in Agenda 21 led to the creation of a Central American alliance, which sought a comprehensive strategy to promote environmental policies in the region. In recent meetings, agendas were adopted for institutional reform for sustainable development, transparency and public participation. The Santiago Consensus represented a plan of action for education on sustainable development, obligating governments to promote democracy, justice, economic integration, free trade, poverty eradication and transparency.

What was most important, he continued, was to have indicators for sustainable development for the commitments to which States were complying. Extreme poverty was the question that needed to be focused on. There were great objectives, which were difficult to comply with. While aims had been set, the time had come to act to combat poverty.

LOWELL FLANDERS, Department of Economic and Social Affairs, said that the Forum of National Sustainable Development Councils covered the structure and role of national councils, resourcing for national councils, the earth charter and the role of national councils in the Rio+10 conference. It presented an opportunity to see the strengths of national councils, which included seeing that they could play an important role in the formulation of sustainable development strategies. The weaknesses of national councils included the fact that not all countries had adopted national council structures.

The Commission Chairman, JUAN MAYR MALDONADO (Colombia), said that special attention should be focused on the fact that the Commission had the time to seek new ideas. It also had the opportunity to exchange ideas among delegations. The Commission was a framework that made possible dialogue between different sectors. It provided a broad framework in which ideas from various sectors and different ways of thinking could be shared. The Commission's role, however, was not to take decisions. That should be seen as something positive, as it was often difficult to find the time for dialogue in the international negotiating processes.

The Commission would have time for dialogue, he continued, and it would make recommendations for the Economic and Social Council to act upon. The Commission was a place of dialogue and a forum for recommendations. It was an ideal time to make comments and seek solutions on topics of great importance, such as trade, agriculture, economic growth and financing.

Dialogue on many of the topics had been blocked, he added. Nothing was moving and it was, therefore, good to have the time to participate in a dialogue and make recommendations. Transparent dialogue would create the opportunity for the Commission to find the key paths towards the future solutions to the great problems facing mankind. The Commission was designed to ensure that thoughts and knowledge would contribute to finding real solutions. There was strong will in the Commission to make progress on those important and difficult issues.

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