Partnership Project
Promotion of Sustainable Development in the Context of
Regional Economic Integration
– Strategies for Environmental Sustainability and Poverty Reduction –
United Nations Environment Programme-Trade and Economics Branch
(UNEP-ETB)
McGill University
Korea Environment Institute (KEI)
National Institute for Environmental Studies (NIES)
Institute for Global Environmental Strategies (IGES)
Under the Framework of
United Nations Environment Programme
Network of Institutions for Sustainable Development (UNEP-NISD)
2nd NISD Meeting
Geneva, 19 September 2005
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Outline of Presentation
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Rationale for the research partnership:
Policy Context
Process of initiating the Partnership Project
Project Design
•
•
•
•
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Objectives
Outcomes
Activities
Work Plan
Implementation Arrangements
• Institutional Arrangements
• Financial Arrangements
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The Policy Context

Asia-Pacific region the world’s fastest growing trading
region

Since 1999, a new wave of FTAs and economic integration
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Future creation of an East-Asian community by the year
2020 >>> East-Asia Summit to take place in December
2005, Malaysia

China, Japan, the Republic of Korea, and the ten countries
of the Association of Southeast Asian Nations (ASEAN)
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Need for comprehensive policy responses to the
accumulative environment effects
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Policy Context
Current web of FTAs concluded or under negotiation in Asia-Pacific region
(Not exhaustive)
East Asian Economic Community
ASEAN +3 Korea-Japan
(under negotiation)
China-ASEAN
India-ASEAN
(framework agreement)
(framework
agreement)
Thailand-Japan
Japan-ASEAN
(framework agreement)
Malayasia-Japan
Singapore-Japan
AFTA
framework agreement
under negotiation
FTA concluded
4
Asian and Pacific Merchandise Exports, GDP, and Number
of Preferential Trade Agreements, 1960-2000
Asian Development Bank, Asian Development Outlook 2002, Figure 3.2.
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Process of initiating the Partnership Project

Establishment of NISD in Jeju, Rep. of Korea, March 2004

As a follow-up, four proposals facilitated by UNEP-ETB

Meeting at TNO (Netherlands Organisation for Scientific Applied
Research) in Delft, The Netherlands, 10-11 December 2004 (IGES,
Institute for Sustainable Futures (ISF), KEI, McGill University and
UNEP-ETB

IGES proposed to facilitate the working group on promotion of
sustainable development in the context of economic integration

Meeting hosted by IGES in Hayama, Japan on 18 February 2005
(IGES, KEI, McGill University, and UNEP-ETB)

MOU drafted and agreed upon by IGES, McGill University, KEI, NIES
and UNEP-ETB
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Objectives

Evaluating the implications of FTAs and regional
economic integration for the environment

Assessing the capacity of existing environmental
policies and institutions to deal with
environmental effects of economic integration at
both national and regional levels

Proposing relevant policies and institutions for
mitigating potentially negative impacts while
enhancing positive ones
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Is there a set of policies and mechanisms that will
promote synergies between economic integration and
environmental quality in East Asia?
Starting hypotheses
1.
As economic integration proceeds, there will be a "race to the bottom" in East Asia,
if no proper response measures (i.e. environmental policies) are taken.
2.
At the same time, there will be more opportunities for countries in East Asia to
promote resource efficiency and eco-industry, as (i) the current resources use in
the region has ample room to improve, and (ii) transfer of resource efficient
technologies will be promoted.
3.
Neither the strong harmonization observed in the EU nor the flexible mechanisms
established in North America can provide a complete solution for East Asia.
4.
Policies and mechanisms effective to promote synergies between economic
integration and the environment will include nurturing eco-industries, labelling,
certification, subsidies, taxes, and other soft measures to promote the emergent
environmental goods and services industry.
5.
Policies to be identified to prevent the race-to-the-bottom, and to nurture ecoindustry, will have only marginal impact on economic growth (thus poverty
alleviation as well), but will contribute to long-term sustainable use of natural
resources and improved environmental quality in the region.
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Outcomes
• Analysis of a few packages of plausible environmental policies in
terms of effectiveness, efficiency, and equity
• Analysis of economic implications of different sets of identified
policies
• Identification of needs for regional policies to promote
environmentally sustainable development
• Identification of environmental policies contributing to poverty
reduction
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Tangible outcomes
• Main report
• Executive summary
• Summary for policy makers
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Activities
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Scenario analysis
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Policy analysis and trend review
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Modelling based on GTAP
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Scenario analysis
Strong
Scenario
B
Scenario
A
Likely Scenario
(Country-Based or
Sector-Based)
Likely
Scenario for
the Region
Strong
Weak
ENVIRONMENTAL
CONTROL
Scenario
C
Scenario
D
Weak
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Policy analysis and Modelling
Model Analysis
Model development and data collection
Policy Analysis
Policy review and
trend analysis
Scenario development at
national and regional levels
Evaluation of Economic Impacts
(positive and negative)
Evaluation of Environmental Impacts
(positive and negative)
(story lines, policies and
indicators)
Analysis of a few packages of
environmental policy
National
and regional
consultations
Comprehensive analysis of
different policy scenarios
-Regional policy harmonization
-Economic efficiency
-Poverty reduction
Set of policies for:
- Mitigation of adverse
environmental effects
- Enhancement of positive effects
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Work Plan
Year 1 (Apr. 2005 – Mar. 2006)
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Inception workshop, 26-28 October 2005.
Work on analytical framework and methodologies.
Drawing of scenarios.
Initiation of activities under the policy and modelling groups.
1st progress review workshop, March 2006.
Year 2 (Apr. 2006 – Mar. 2007)
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Continuation of activities under the policy and modelling groups.
Formulation of policy proposals.
Thematic workshops.
National and regional policy dialogues.
2nd progress review workshop, March 2007.
Year 3 (Apr. 2007 – Mar. 2008)
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Synthesis of activities under the policy and modelling groups.
Refinement of policy proposals and feed-back to modelling exercise.
Thematic workshops.
National and regional policy dialogues.
Concluding workshop, March 2008.
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Institutional Arrangements
Core Group:
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UNEP-ETB, IGES, McGill University, KEI, NIES
Partner Institutes:
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Policy Research Center for Environment & Economy, State
Environment Protection Administration of China
Indonesian Institute of Sciences
Thailand Environment Institute
Institute of Environmental Science and Technology, University of
Hanoi
Resource Persons and Institutions:
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Keio University, Seikei University, ASEAN Secretariat and others
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Financial Arrangements
Core Group:
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Provide for the cost of activities under their responsibilities
Provide financial support to partner institutes in developing
countries
Partner Institutes:
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Provide in-kind and intellectual contribution
Receive financial support from the core group for directs costs of
research
Resource Persons and Institutions:
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Provide intellectual contributions
Receive financial support from the core group as may be
required
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Thank you for your attention!
Hideyuki Mori,
Project Leader, Long-term Perspective and
Policy Integration Project, IGES
For further information, please contact:
h-mori@iges.or.jp
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