Draft PRODUCTION AND CONSUMPTION IN LITHUANIA: DO WE MOVE TO SUSTAINABILITY? Romualdas Juknys Vytautas Magnus University, Environmental department Introduction At the Johannesburg World Summit on Sustainable Development elimination of unsustainable production and consumption was considered as one of the most important objectives of sustainable development (WSSD, Plan of implementation, 2002). Already in Brundtland commission report (Our common future,1987) was stressed out, that development should be far less material intensive and more economically and environmentally efficient. Serious attention to sustainable production and consumption was paid in the main Rio World Summit documents. Principle eight of Rio Declaration defines, that “to achieve sustainable development and a higher quality of life for all people, States should reduce and eliminate unsustainable patterns of production and consumption…”. In Agenda 21 unsustainable patterns of consumption and production were considered as major cause of the continued deterioration of the global environment and all countries were asked to develop domestic policy framework to encourage a shift to more sustainable patterns of production and consumption. As it was summarized by J. Barber (2003), a number of international conferences, workshops, reports and other activities were organized to implement recommendations made in Agenda 21. The main consensus was achieved, that policy strategies should aim at improved efficiency in consumption of energy and other resources. Education, ecolabelling, subsidy and tax reform, public participation in policy making are considered as an important features of the successful implementation of more efficient production and consumption patterns. However, as it was noted in the UN report at the Johannesburg summit, despite the serious achievements throughout the decade after Rio, progress towards the goals established in Agenda 21 has been much slower than anticipated and in some respects situation is worse than 10 years ago. Gap in implementation was considered as most urgent problem (UNSD, 2002). This gap is especially obvious in the lack of major changes in production and consumption efficiency. Absence in concrete, measurable objectives and timetables for their 1 implementation, appropriate quantitative indicators to follow the progress, could be considered as an important obstacles to achieve an essential progress towards more sustainable production and consumption. Analysing different aspects of sustainable development, two categories of countries are usually distinguished – developed countries and developing countries. However, after the former Soviet Union collapsed and all Soviet block was broken down, a third group of countries with especially specific features of their development appeared. Though these countries of so called transition economies occupy a huge area from the Atlantic to the Pacific ocean, too little attention is being paid to the analysis of their development and patterns of production and consumption. Changes in political system and transition from the centralized to a market economy caused an inevitable temporary economy and social decline (National report of Lithuania, 2002; Latvian national report, 2002; National strategy of Moldova, 2002). Along with the economic decline, not only the production volumes decreased several times, but the consumption of the natural resources and environmental pollution as well. Such a great decrease in the consumption of natural resources and environmental pollution is, no doubt, a very positive phenomenon from the point of sustainable development. However, taking into consideration the fact that these favourable to the environment changes took place mostly not because of the implementation of special environmental protection measures, but because of transformational economic decline, these changes cannot be regarded so unambiguously. Since the middle of the past decade the economy in the most countries of transition economy has started to recover. More rapid positive economic changes were taking place in the countries that have chosen the way of fast reforms, so-called “shock therapy” and most of these countries just joined European Union. Analyzing possibilities of development of newly independent countries, it is necessary to take into account that these countries inherited extremely ineffective and resources consuming economy. On other hand they inherited sufficiently high level of people education, rather well developed, thought not very modern, energy supply and communication infrastructure (National report of Lithuania, 2002; Miskinis, 2003). This human and economic potential creates good preconditions for rather fast changes of production and consumption patterns to more sustainable way. The main trends in all three sectors of sustainable development – economy, environment and society are analysed in the first section of this presentation. Second section of the presentation is dedicated to the analysis of changes in efficiency of production and 2 consumption in the main branches of Lithuanian economy. The general provisions of Lithuanian strategy on sustainable development with special attention to main targets for elimination unsustainable production and consumption are presented in the last section of presentation. 1. The main trends in the economy, environment and society Extremely large scale and rapid pace of on-going changes is a characteristic feature of all newly independent states. If the changes of the last decade in economy, consumption of natural resources, state of environment and social development are measured by per cent or tens of percent in the the developed and developing countries, such changes are measured by several times or even by tens of times in the countries with economies in transition. The main economic, environmental and social changes in Lithuania during 1991-2002 years are analyzed futher. 1.1 Economic changes The period after reestablishment of independence was especially complicated and difficult regarding to economic development of Lithuania, as well as other newly independent countries. The country’s economy developed in the conditions of intersection of two economic systems: a centrally governed system and the system of a free market. Opinion of the economists and politicians from different countries and international organizations on the nature of the reform and particularly on its optimal pace of them was very different. In fact two ways were proposed: way of a slow evolution seeking to adapt the institutions of centralised economy to market economy conditions and the other one was the way of rapid reforms or so-called “shock therapy”. Lithuania, like other Baltic States and many countries of the former Soviet block, chose the way of rapid reforms. Today, from more than 10 years perspective it is absolutely obvious that “shock therapy” was difficult but much more effective than the way of slow institutional reforms. As it was mentioned, countries which have chosen this more risky way made much more rapid progress in different sectors of their development and most of these countries already joined European Union. Gross Domestic Product (GDP) - the most universal indicator generalising the development of the country’s economy - shows the pace of the economic development, and possibilities in the rise of wellbeing of the society. In Lithuania, like in all other countries of transition economy, GDP was on the rapid decrease after drastic changes in political and 3 economic systems. After basic possibilities for market economy have been created, a certain period of time was necessary to adopt new requirements and to make necessary changes, allowing making efficient use of these possibilities. 60 59 GDP, LTL billions 50 46,6 39,1 40 38,1 35,3 36,4 40,8 43,5 43 44,7 47,6 50,8 30 20 10 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Fig. 1.1 Changes in general GDP, 1991-2002 As seen from Fig 1.1, the deepest depression in economy according to created GDP was achieved in 1994, and it accounted for 59.6% of the level at 1991. The year 1995 is regarded as the turning point in the Lithuanian economy. Then the increase in GDP of 3.3 percent was registered for the first time after the re-establishment of the independence. This trend remained unchanged during the following three years when the increase in GDP accounted for 4.7% in 1996, 7.3% in 1997 and 7.3% in 1998, respectively. The 1998 economic crisis in Russia had a significant negative, fortunately very short term impact on a development of Lithuania’s economy. Due to this crisis, decrease on a 3.9% of GDP was registered in 1999. From 2000 accelerating growth in GDP has started and almost 7% increase was achieved in 2002. According to preliminary evaluations almost 9% increase in GDP was registered in 2003, and Lithuania became one of the fastest growing economies in the Europe. However, when comparing this indicator to the average of EU countries, it still approximately three times lower according to estimates of purchasing power parity. The industrial sector was developed relatively well in Lithuania and about 40% of GDP were created by industrial enterprises before the re-establishment of independence. Since that sector was most closely integrated into overall economy of the former Soviet Union, including military industry, it was the sector that suffered the most serious decline at the beginning of transition period. Relative changes in production volumes in the industrial 4 sector are presented in Fig.1.2. The Figure shows that industry experienced the sharpest decline at the beginning of the transition period and reached the lowest point in 1994 when production in the industrial sector decreased by nearly three times as compared with 1991. From 1995 the industrial sector started gradually to recover and despite of repeated depression in 1999 in 2000 amount of industrial production has increased by nearly 11%, as compared to 1999. Nearly 20% increase in industrial production was achieved in 2001, however amount of industrial production in this year has reached only half of that to compare Industrial index, percent with 1991. About 10% decrease in industrial production was registered in 2002. 100 100 90 80 70 60 50 40 30 20 10 0 64,7 51,6 50,9 35,9 36,1 37,2 40,2 43,6 40,6 44,3 47,3 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Fig.1.2 Changes in industrial production (1991=100%) Structure of manufacturing industry was changing along with the recovery of industrial sector and industry based on high technologies and local resources is growing most. However, according to the level of industrial technologies, the situation in Lithuanian industry is not satisfactory enough. Production based on high technologies accounts for about 15% of total industrial production, whereas this indicator in most EU countries amounts to 20-25%. Agriculture suffered cardinal changes after reestablishment of independence. With the system of collective farms falling down and private farms rapidly forming, not only agricultural production but also the entire life of the rural population has changed in essence. Area of crop lands was reduced approximately by 20% during transition period. It is expected that with the country’s economy recovering, the total area of crops will increase insignificantly and it is planned to plant forests in a large part of barren unproductive lands. Agricultural production and the structure of production changed rather significantly during this period. Changes in harvest of the main crops during 1991-2002 year period are presented in Figure1.3. 5 Winter and spring cereals are the main agricultural crops in Lithuania. Data presented in Figure 1.3 show that the total harvest at the beginning of the transitional period was gradually on the decrease. In 1995 it accounted for only 60% of the harvest in 1990. However, in 1996 cereal harvest started to increase and during last years it consist about 80 % to compare with harvest in 1990. During the recent years average cereal yield amounts to 3 tons per hectare and traditionally it is nearly twice less than the average cereal yield in the European Union countries. This comparatively low cereal yield is determined by the fact that Lithuanian farmers usually grow mainly local cereal species and use relatively little fertilisers and pesticides. Production of other main crops – potatoes, sugar beet and vegetables approximately equals to that of 1990 during last years. 160 140 Percent 120 100 80 60 40 20 0 1990 1991 1992 1993 Cereals 1994 1995 Potatoes 1996 1997 1998 Sugar beet 1999 2000 2001 2002 Vegetables Fig. 1.3 Changes in production of the main agricultural crops (1990 = 100%) Areas of rape have increased considerably (7.5 times) during last decade. This has been determined by a wider use of rape not only for food and perfumery industry but also for the production of bio-fuel. In summing up the trends in the development of plant production, the conclusion should be drawn that the agricultural sector has recovered quite rapidly after the shock of the reforms. Since 1995-1996 it has grown rather rapidly and harvest of most agricultural crops already has reached or even exceeded level of 1990. Animal production decreased rapidly in the first half of the transitional period. In 1994, as compared with 1990, only about 40% of meat, 55% of milk, and 60% of eggs were produced. However, contrary to the plant production sector, so far very slow increasing trends in the animal production have been observed. Production of eggs grew up to 72 %, and production of milk up to 57% to compare with 1990. However production of meat is on the further decrease and in 2002 it consisted only about one third of that in 1990. It is necessary to take into account that during the years of the collective-farm regime, seeking to provide the 6 deficit market of the former Soviet Union with animal products, Lithuanian agriculture was thrown off balance. The animal production sector was overdeveloped and for the most part was provided with imported rather than local fodder. Rather positive changes took place in forestry sector during last ten years despite of almost two times increased areas of clear cuttings (Fig. 1.4),. Area of forests has increased by 3.5% up to 2045 thou. ha. Current forest coverage in Lithuania consist 31.1%. Growing stock of Lithuanian forests from 1993 to 2003 has increased by 14.3% and consist 383 mln. cubic meters. 16 15,3 14 12,4 Thou.ha 12 12,2 10,7 11,5 12,4 13 10 8 8,1 7 7,8 7,4 1993 1994 6 4 2 0 1991 1992 1995 1996 1997 1998 1999 2000 2001 Fig.1.4 Changes in area of annual clear cuttings The increase in the forest productivity is important not only from the economic but also from the ecological point of view as one of the factors stimulating the sink of carbon dioxide and reducing the input to global climate changes. In the meantime the protection of biological diversity quite often determines some decrease in the productivity of forest ecosystems. Therefore one of the main objectives of the present-day forestry - to increase the productivity of forests by preserving their biological diversity. Moreover, it is important to develop social functions of forests by raising possibilities for wider use of forests for recreational and educational purposes, solving the employment problem of local people. Transport sector suffered the least transformational decline during the transition period. Therefore, during the period under study the share of the GDP created in this sector increased from 8 percent in 1991 to 13 percent in 2002. Taking into account such a rapid, as compared to other economy sectors, development of transport sector this sector became most problematic from the point of sustainability. 7 The number of vehicles increased especially rapidly during that period – in 1991 there were 128 cars per 1000 population and in 2002 this figure stood at 316. More detailed data on changes in the number of different types of vehicles during the period from 1991 to 2002 are presented in Fig.1.5. Number of trucks has increased by 12% and number buses almost did not change during this period. A rapid growth in the number of vehicles really took place mostly because of the rapid increase in the number of cars. Number of vehicles 1400000 1200000 1000000 800000 600000 400000 200000 0 1991 1992 1993 1995 1996 1997 1998 1999 2000 2001 2002 Buses Trucks Cars Fig. 1.5 Changes in number of vehicles The number of railway means of transportation decreased nearly by one-fourth during that period. Since emissions of railway transport to carry the same quantity of passengers or cargo are considerably smaller comparing to the emissions of road transport, this trend should be assessed negatively from the point of sustainability. Essential reduction in public transport is other essential drawback of transport development during transition period in Lithuania. Passenger traffic by public transport has decreased about three times from 1991 up to 2002. Meanwhile passenger traffic by rail transport has decreased even 5 times. After the re-establishment of independence of Lithuania, the structure of the car fleet has changed notably. In 1990 nearly all the cars were produced in the former Soviet Union. A present-day car fleet consists mainly of cars from Western Europe and Japan. However, little as 2 per cent of all cars were produced less than five years ago, whereas 85% of cars are more than 10 years old. The average age of cars produced in Western countries is over 13 years. Cars made in the East are even older - their average age amounts to 18 years and it creates additional environmental problems. 8 1.2 Environmental quality Data on environmental status and changes during 1991-2002 period are presented in this section. Air pollution has decreased substantially as a consequence of an economy decline and modernization after re-establishing of independence. The data on changes in total emissions of the main pollutants (sulphur dioxide, nitrogen oxides, carbon monoxide, non-methane volatile organic compounds and solid particles) into the air from stationary (industry and energy production) and mobile sources are presented in Fig. 1.6. 700 Thou. tons 600 500 400 300 200 100 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Stationary sources Mobile sources Fig. 1.6 Changes in emissions of pollutants from stationary and mobile sources. It is seen that throughout the analysed period total emissions of the main pollutants decreased from 1.1 million tons to 260 thousand tons, e.i. almost 4 times. The data presented also show that trends of emissions from stationary (industry, the energy sector) and mobile (vehicles) sources of pollution are rather different. During this period emission from stationary sources was on the permanent decrease and during the twelve years period emissions from stationary sources decreased by 4.5 times. Meanwhile emissions from mobile sources decreased almost twice during first two years of transition period and stood on the same level up to 1998. Along with more fast renovation of road transport fleet and more wide use of environment friendly fuel (liquid gas) very fast reduction of emissions was registered in 1999-2001. Final estimation for 1991-2002 period would be 3.6 times reduction of emissions from mobile sources. Emissions of the main green house gas carbon dioxide decreased from 45 to 15 million tons, that is, as much as three times during investigated period. Though these changes were mainly determined by a transformational decline in economy, a lot has been done in Lithuania to implement the requirements of the United Nations Framework Convention on 9 Climate Change and the Kyoto Protocol. Many buildings have been renovated seeking to use the supplied heat more economically and rather essential part of small boiler-rooms have been refurbished and fossil organic fuel has been substituted by bio-fuel (timber, straw). After emissions of pollutants into the air had decreased, the quality of air in Lithuanian cities was improved considerably during this period. Average concentrations of nitrogen dioxide varied from 25-30 g/m3 (Klaipeda, Panevezys, Jonava) to 55-65 g/m3 (Kaunas, Siauliai) in 1991, they did not exceed 30 g/m3 in most of the towns in 2002. Due to centralised heating systems, urban air in Lithuania contained small concentrations of sulphur dioxide. The concentrations decreased even more during the period under study, and its average annual concentrations in most Lithuanian towns do not exceed 2 -3 g/m3. The concentration of solid particles also decreased considerably in Lithuanian towns during that period. If the concentration of solid particles in nearly all Lithuanian towns quite often exceeded maximum allowable concentrations (150 g/m3), and in Kaunas and Siauliai the average concentrations of solid particles amounted to almost 300 g/m3 in 1991, the average annual concentrations of solid particles nowhere do not exceeded 100 g/m3 in 2002. Since 1996, after JSC “Mažeikų nafta” started producing only unleaded gasoline, and since 1998, after gasoline containing lead admixtures was prohibited in Lithuania, lead concentrations in urban air have also decreased significantly and do not exceed 0.01g/m3. Water pollution has been reduced considerably during transition period as well. Amount of wastewater during this period decreased several times (Fig. 1.7). The data presented in this figure show that about 300 million cubic meters of polluted wastewater was formed in Lithuania in 1991. The amount of wastewater was continuously on the decrease and in the year 2000 its total amount constituted about 160 million cubic meters, that is almost two times less than in 1991. However, some increase in amount of waste water along with recovery of economy was recorded during last two years. During this period not only the total amount of wastewater but also the level of its treatment changed significantly (Fig. 1.8). If over 27% of the total amount of wastewater were discharged into the surface water bodies consisted untreated wastewater, over 50%insufficiently treated waste water and only 22% - waste water treated up to the established standards in 1991, the amount of untreated wastewater accounted for as little as 12% and that of waste water treated up to the established standards accounted for over 60 per cent in 2000. 10 400 393 366 350 345 336 304 mln.cub. m 300 252 250 233 217 200 182 168 1999 2000 232 226 2001 2002 150 100 50 0 1991 1992 1993 1994 1995 1996 1997 1998 Fig.1.7 Changes in amount of waste water The quality of wastewater treatment started to improve considerably from 1996 when Vilnius biological water treatment facilities were run and water treatment facilities in some smaller towns were reconstructed or constructed. The amount of untreated wastewater decreased several times after Kaunas mechanical water treatment facilities started to operate in 1999. 1990 22% 1999 12% 27% 28% 60% 51% Utreated Partially treated Treated to standarts Utreated Partially treated Treated to standarts Fig. 1.8 Structure of polluted wastewater by the level of treatment Wastewater treatment standards have been changed since 2000, and treatment quality has begun to be assessed not only by organic pollution (BOD) but also by the amount of nitrogen and phosphorus. The part of wastewater treated up to the established standards has increased, and these data cannot be compared with the data of the previous years. The data presented in Table 1 show that due to improved treatment of waste water the amount of pollutants discharged into the surface water bodies decreased much more significantly than the total amount of wastewater. Pollution of surface water bodies with organic and suspended matter during last decade was reduced by more than seven times, with 11 nitrogen and phosphorus over three times, with oil products almost five times, and with heavy metals – by as much as seven times. Table 1 Changes in amount of pollutants discharged into surface water bodies (tons per year) Year Organic Suspended Total Total Oil Iron Heavy matter solids nitrogen phosphor products metals (BOD7) us 1991 36200 39000 390 177 98 1992 31900 36900 10600 1438 340 172 109 1993 27920 30430 10208 1534 270 101 97 1994 34500 38500 10773 1502 280 166 93 1995 21000 26000 7663 1183 220 71 59 1996 16600 17900 6446 960 160 30 48 1997 15000 15000 5401 879 150 10 46 1998 13000 14000 4545 795 130 4.4 36 1999 10000 9000 3923 750 100 2.9 24 2000 7000 7000 3671 645 60 1.9 29 2001 7000 6000 3634 550 60 1.8 20 2002 5100 5200 3202 440 80 1.9 14 Red. 7.1 7.5 3.3 3.2 4.9 9.3 7.0 factor Lithuanian rivers are characterised by a high degree of pollution with organic matter and nutrients. According to water quality classification based on pollution with organic matter (BOD), the concentration of nitrogen and phosphorus as well as bacteriological pollution (Colibacillus index), about 10% of Lithuanian rivers are attributed to relatively clean rivers (Quality Class I-II), about 70% – to rivers polluted to an average degree (Quality Class IIIIV) and about 20% – to heavy polluted rivers (Class V-VI). However, even after discharges of pollutants had decreased several times (Table 1), the quality of water in rivers changed insignificantly during the past decade. Partly this can be accounted for by secondary pollution of rivers from bottom sediments, decomposition of plant biomass, and non-point agricultural pollution. In assessing quality of agricultural soils is necessary to take into consideration absolutely different farming conditions prevailed before the re-establishment of independence of Lithuania and after it has been re-established. During these periods use of fertilisers and pesticides as well as soil liming differes significantly. 160-200 thousand hectares of acid soils were annually limed in Lithuania in 1965-1990, however beginning with the middle of 1990 liming was stopped at all. Use of pesticides and mineral fertilisers has decreased several times since 1990, and favourable conditions for developing organic farming have formed. 12 Decreased volumes of liming and use of pesticides as well as mineral fertilisers had a considerable effect on the change in agrochemical properties of Lithuanian soil and the level of its pollution. Data of soil monitoring show that the acidity of deacidificated soils started to restore gradually after its regular liming was terminated. Despite deposition of acid compounds decreased considerably during the past decade, though they contribute to soil acidification to a certain extent. Soils of western Lithuania containing the largest areas of relatively acid soils prior to liming are acidified to the greatest extent. During past decade the percentage of relatively acid soils increased on average by 10.9% in of western Lithuania and this figure was essentially lower in Eastern (2.2%) and Central (1.3%) Lithuania. Use of pesticides decreased several times in Lithuania, and currently about half a kilogram of them is used per hectare of arable land. Decomposition of modern pesticides is very fast, therefore the danger of polluting the environment has decreased considerably. However, some earlier used chlorine organic pesticides were extremely harmful to warmblooded animals, and their residuals did not decompose for a long time. According to the 1989-1991 research data, of all the samples analysed, DDD and DDT residuals in soil accounted for 13.3%, alpha () hexachlorane and DDE – for 45.9 %, and gamma()hexachlorane – for 43,9 %. However studies carried out in 1990-2001 showed that their quantities are on the decrease. For example, the quantity of alpha () hexachlorane, as compared with that in 1989-1991, has decreased by about 43 times, that of gamma()hexachlorane has decreased by as much as twice, that of DDE – by 7 times, DDD – by 13 times and that of DDT – by as much as 16 times. 1.3 Social changes Drastic changes of Lithuania’s population took place over the last few decades. Before World War II three million people lived in the present territory of Lithuania. Severe population losses during World War II and the post-war years of active resistance took place in Lithuania, when about 300 thousand people were killed, more than 400 thousand were deported to Siberia and many others emigrated. Subsequent censuses showed that the pre-war population size had not been regained before 1967. From the beginning of 1960’s Lithuania’s population was growing quite steadily for three decades and in 1992 it reached 3.74 million. Enforced immigration from the eastern republics of the contemporary Soviet Union contributed to the growth of Lithuania’ population rather essentially. 13 Since 1993 Lithuania’s population has started to decrease again. Due to decreased births and increased emigration this trend is continuing so far. According to statistical data total population of Lithuania consisted 3.46 mln. in 2002. Birth and mortality rate data during the 1990-2002 year period is presented in Fig.1.9. It seen that birth rate was decreasing during entire period, whereas mortality rate was increasing during 1993-1994 and from 1994 population mortality rate started to exceed the birth rate, that is natural growth of the population became negative. Since 1995 mortality rate has begun to decrease at the same pace as birth, and negative natural growth of population of approximately 0.1% has been registered up to 2000. However, from 2001 along with more fast reduction of births and increased mortality negative natural growth reached 0.3% in 2003. 18 16 14 12 10 8 6 4 2 0 1990 1991 1992 1993 1994 1995 Birth rate 1996 1997 1998 1999 2000 2001 2002 Mortality rate Fig. 1.9 Changes in the birth and mortality rate per 1000 population Average life expectancy at birth is an important indicator of a society’s wellbeing and its state of health. During this decade this indice was changing quite significantly. According to the data presented in Fig.1.10, the average life expectancy at birth of females is considerably greater than males. This is a characteristic feature of all the countries, but in the EU countries this difference accounts for about 7 years on average. In Lithuania this difference exceeded 12 years in 1994 and at present it makes up about 11 years. Since 1991 the average life expectancy at birth of males has been reducing quite significantly. In 1994 it reached the minimum of 62.6 years, that is nearly four years less than at the beginning of the transition period and almost 10 years less than on average in the European Union. The average life expectancy at birth of females did not reduce so significantly and in 1994 it was only 4 years less than in the European Union. 14 Years 80 76,3 76,1 76 75 74,9 75,1 76 76,8 76,9 77,4 77,5 77,6 77,6 70 66,4 65,3 64,9 63,3 62,7 63,5 65 65,9 66,5 66,7 66,8 65,9 66,2 60 50 40 30 20 10 0 1990 1992 1994 1996 Females 1998 2000 2002 Males Fig.1.10 Changes in average life expectancy at birth Since 1995 a quite obvious increase in average life expectancy has been registered in Lithuania. From 1998 up to 2002 the average life expectancy of males equaled and for females at 2002 approximately by 1.3 years exceeded level of the end of soviet period. During the recent decade important reforms were being carried out in the education system, including a structural reform, introduction of new types of schools and a curriculum reform. The total number of pupils and students per 10.000 population decreased from 1830 to 1790 at the beginning of the transitional period in Lithuania. However, it has been increasing since 1995, and in 1997 it exceeded the level of 1990. At present it accounts for more than 2140 per ten thousand of population. 120 120 107 100 95,6 84,3 thous. 80 74,5 67 60 60,5 67,1 55,1 52,8 51,5 54 58,8 40 20 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Fig.1.11 Changes in number of students At the beginning of the transition period the number of students in universities decreased from 67 thousand in the academic year 1990/91 to 51.5 thousand in the academic year 1994/95. From 1995/96 the number of students at Lithuanian universities started to increase rapidly, and in the academic year 2002/2003 it reached 120 thousand, that is it 15 exceeded the level of the end of soviet period almost two times. At present the Lithuanian higher education system includes 19 university-type higher education institutions (including 15 state universities and academies, two church seminaries and two private higher education institutions) and 16 colleges (including nine private). One of the most urgent social problems in Lithuania – rather high level of unemployment. During the last decade very broad and intensive economic transformations in Lithuania resulted in radical changes in employment. According to the number of the unemployed registered at the Labour Exchange, the unemployment rate rose from 4,4 percent in 1993 to 12,5 in 2001. However, special surveys carried out by the Department of Statistics indicate a much higher level of unemployment. 20 17,4 17,1 16,4 16,4 14,1 Percent 15 13,4 14,1 11,5 10 7,1 5 4,4 5,1 1994 1995 17,4 12,5 13,8 11,3 2001 2002 8,4 5,9 6,4 1997 1998 0 1996 Labour exchange data 1999 2000 Labour force survey data 1.12 Changes in unemployment level A maximum unemployment rate of over 17 per cent was reached in 1994 – 1995 (Fig. 1.12). Since 1996 the real unemployment rate had been decreasing, but since 1999 it has been increasing again and in 2001 it reached a level of 1994. Rather essential decrease in unemployment was registered in 2002, and according to labour force survey data it consisted 13.8 percent. Low level of disposable incomes is other serious social problem in Lithuania. With the economic recovery average disposable income per capita has been rising much slower than GDP and in 2000-2001 even decrease in disposable incomes was registered (Table 1.2). The share of foodstuffs in all the consumers’ expenditure is the biggest, however has been decreasing all the time and currently consist about 40 percent. Other main positions in the consumption expenditure structure are as follows: housing, water, energy- 14.0%, transport6.9%, clothing and footwear-6.5%, communication- 5.2%, health care- 4.8%, recreation and culture-4.3%, hotels, café and restaurants – 4.6%. 16 Table1.2 Average monthly disposable incomes per capita and foodstuffs expenditure share Indicator 1996 1997 1998 1999 2000 2001 2002 Incomes, LTL 326.7 368.9 422.5 428 415.4 409.5 422.0 Foodstuffs 55.2 52.2 48.1 45.7 44.4 42.4 40.7 expenditure share , % The relative poverty line is estimated at 50 percent of the average monthly consumers’ expenditure and is used as the main indicator of poverty. It was changing from 226 LTL in 1996 to 270 LTL in 2002. Poverty level (percentage of people below powerty line) was reduced very slightly from 18% in 1996 to 16% in 2002. 2. Changes in eco-efficiency of production and consumption Along with rather fast growth of economies in most newly independent countries, decoupling of environmental impact from economy growth should be considered as a one of the most important tasks from point of sustainability. Indicators of eco-efficiency are of particular importance to evaluate sustainability and reflect a level of dematerialization of production and consumption and a course of decoupling of use of natural resources and environmental pollution from economic growth. Amount of production and services per unit of consumed natural resources is considered as a main indicator of eco-efficiency most often (Gee and Moll, 1998; Randla, Kurisoo and Vilu, 2002). Very often the inverse of ecoefficiency – eco-intensity (energy intensity, material intensity) is used as indicator of sustainability (Sun, 2000; Indicators of Sustainable Development, 2001; Miskinis, 2002 ). Double decoupling, i.e. decoupling of consumption of natural resources from economic growth, which could be named as primary decoupling, and decoupling of environmental pollution from the consumption of natural resources (secondary decoupling) should be considered for more deep analysis of development trends. In most EU countries secondary decoupling, as a result of different environmental pollution mitigation measures, has started since the early 1980s and an essential decrease in emissions of most key air pollutants was achieved even along with some increase in energy consumption (GEO 3, 2002). 17 Pollution intensity is used as indicator of secondary decoupling in this report. Usually pollution intensity is considered as amount of pollutants per unit of production (Sun, 2000). In this report pollution intensity is treated differently, i.e. as amount of pollutants per unit of consumed resources. Taking into account that measures and decisions needed to achieve primary and secondary decoupling are rather different, such treatment of pollution intensity is more useful for analysis of reasons of the main development trends. Two basic questions should be answered first of all in order to evaluate the changes of transition period from the point of sustainability: Has the consumption of natural resources decreased only because of the economic recession? Has the environmental pollution decreased only because of the decreased consumption of resources? If the answers to both of these questions would be positive, that would mean that changes that took place in the countries of transition economy did not lead to sustainability, and along with more fast growth of economy simultaneous increase in the consumption of natural resources and environmental pollution would start. 120 Percent 100 80 60 40 20 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 GDP Energy consumption Emission to air Fig. 2.1 Comparison of changes in GDP, final energy consumption and emissions to air (1991=100%) Data on changes in general Gross Domestic Product (GDP), in energy consumption for production and services, and in total emissions of the main pollutants (sulphur dioxide, nitrogen oxides, carbon monoxide and non-methane volatile organic compounds) into the air 18 are analysed first of all (Fig.2.1). For more evident comparison the data of all the mentioned indicators at 1991 are equalled to 100 percent. As seen from presented data even during the period, when the most intensive economic depression took place (1992-1995), the use of energy resources and air pollution decreased much more rapidly than the production and services (GDP). In the second part of past decade with a slight recovery in the country’s economy, the amount of the consumed energy and environmental pollution did not change up to 1998. Due to the Russian economy crisis, a reduction of GDP was registered in Lithuania in 1999. However, since 2000 Lithuanian economy has started to grow again, but energy use and environmental pollution have been on an essential decrease. Conclusion can be made on the basis of data presented in Fig.2.1 that decoupling of production and services from the consumption of resources, which is named as primary decoupling, took place from the very beginning of transition period. Decoupling of environmental pollution from the use of energy resources (secondary decoupling) has started only since 1999 and is not so essential. So, the first question presented above could be clearly answered – no, the consumption of resources decreased not only because of economic decline. Transition to the market economy and restructuring of the Lithuanian economy as well as increased prices of energy and other resources determined favourable from the point of sustainability changes in Lithuania’s development from the very beginning of the transition period. The answer to the second question presented earlier can be answered in the same manner– no, the emission of pollutants decreases not only because of the decreased consumption of the resources. Having implemented more advanced fuel combustion technologies in some energy and industrial enterprises and having started to consume more natural and in the transport sector – more liquid gas, emissions of pollutants for the same amount of consumed energy started to decrease as well. More accurate data on changes in energy intensity (amount of consumed energy per GDP unit) and pollution intensity (amount of air pollutants per unit of consumed energy) are presented in Fig. 2.2. More than double decrease in energy intensity of Lithuania’s economy during last decade can be seen from presented data. However, comparing with the European Union member states, the efficiency of energy use in Lithuania is still quite low and energy intensity is 1.5-1,7 times higher (Miskinis, 2002, 2003). 19 120 Percent 100 100 80 103 111 93 85 74 72 98 103 70 66 96 100 91 80 60 64 59 53 47 40 69 65 45 45 20 0 1991 1992 1993 1994 1995 1996 Energy intensity 1997 1998 1999 2000 2001 2002 Pollution intensity Fig.2.2 Changes in energy intensity and pollution intensity (1991=100%) Reduction of pollution intensity has started much later (Fig. 2.2) and emissions of pollutants for the same amount of combusted fuel has decreased approximately by one third during the same period. Efficient use of energy as well as the encouragement of producers and consumers to use efficiently indigenous, renewable and waste energy resources are very important goals of energy policy specified in the Law on Energy, National Energy Strategy and the National Energy Efficiency Programme. 120 Percent 100 80 60 40 20 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Industry Construction Agriculture Transport Trade and services Fig.2.3 Changes of energy intensity in different economy branches (1991=100%) (Lithuanian institute of energy, V.Miskinis) As seen from the data presented in Fig. 2.3, the most significant changes in energy intensity took place in sectors of agriculture, construction, trade and services. Despite some increase of energy intensity in agricultural sector in 2002, conclusion can be made, that in these sectors energy intensity has decreased approximately 4 times during analysed period. 20 Changes of energy intensity in industry and transport sectors were not so considerable, however approximately 1.8 times decrease in energy intensity took place during 1991-2002 period in these sectors as well. Over the past decade much attention has been devoted to wider use of indigenous and renewable energy resources in Lithuania. In 2002 their share within the balance of the country’s primary energy accounted for over 9%. Wood, waste of wood processing (bark, branches, sawdust, etc.), biomass of rapidly growing trees and bushes, waste of agricultural production (straws, boon, etc.), hydroenergy and biogas are the main sources of renewable energy currently. The data on changes in production, consumption of natural resources, environmental pollution and course of primary and secondary decoupling in different sectors of Lithuanian economy are summarized further. As it was mentioned earlier industry sector suffered the deepest depression after reestablishment of independence. The changes in production as created GDP, use of energy and water resources and emissions to air in the industrial sector are presented in Fig. 2.4. As seen from presented data, in the first half of the past decade no favourable changes from the point of sustainability were registered in the industrial sector. Consumption of energy as well as emissions to air decreased approximately in same proportion as the decrease in production, and only more intensive decrease in water consumption was registered in 1995 and 1996. 120 Percent 100 80 60 40 20 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 GDP Energy consumption Water consumption Emission to air Fig.2.4 Relative changes in GDP, energy consumption, water consumption and emission to air in industry sector (1991=100%) Having started to implement more advanced production technologies and to implement cleaner production methods (Staniskis, 1996), the eco-efficiency of industrial enterprises 21 started to grow from 1997, and decoupling of production from resources consumption has started., as a result of these positive changes. Energy intensity decreased by 1.7 times and intensity of water consumption – by almost 2.2 times in the industrial sector during entire 1991-2002 years period. However, secondary decoupling (decoupling of environmental pollution from the use of natural resources) was registered in the industry sector just from 2002 (Fig.2.4) and emissions to the air per unit of consumed energy (pollution intensity) were reduced only by 20 % during last decade. Serious attention to the environmental pollution mitigation measures should be given in nearest future in order to avoid more significant increase of environmental pollution along with fast recovery of industry. Low level of recycling is one of the most serious drawbacks of Lithuanian industry from the point of sustainability. Since a main part of municipal waste is not sorted, the amount of recycled paper and cardboard waste in Lithuania consist only about 25 %, that of glass – 18 %, and plastic waste accounted for only 6 %. The remaining part of these raw materials is still taken to landfills. After the Law on Packaging and Packaging waste as well as Amendments to the Law on Environmental Pollution Taxes came to the power, an essential improvement of Percent this situation has started from 2003. 160 140 120 100 80 60 40 20 0 1991 1992 1993 1994 GDP 1995 1996 1997 Fuel consumption 1998 1999 2000 2001 2002 Emission to air Fig. 2.5 Relative changes in GDP, fuel consumption and emissions to air in transport sector (1991=100%) Changes in GDP created in transport sector, fuel consumption and emissions to air are compared in Fig. 2.5. As seen from presented data, fuel consumption in transport sector has started to decrease along with the more rapid change of road transport fleet from made in former Soviet Union to cars, trucks and busses made in West Europe and Japan and rather fast decoupling of fuel consumption from GDP created in transport sector have started only 22 from 1999. To compare with 1998, energy intensity in transport sector during last four years was reduced almost 1.8 times. Secondary decoupling in transport sector has started much earlier (Fig.2.5), and amount of pollutants per unit of consumed fuel has decreased more than two times during analysed period. In agricultural sector energy consumption decreased almost eight times during analysed period. About four times less energy is consumed in order to create GDP unit at present than at the beginning of the decade. This fact could be assessed differently – on the one hand, it shows low effectiveness of the former collective farms and very irrational energy use. On the other hand, it is obvious that current rather low-productive and poorly- mechanised agriculture have to be modernised in the nearest future, in order to adjust to the growing competition as a result of the eurointegration and globalisation processes. The changes in the annual grain harvest and the amount of pesticides used per one hectare of arable land are compared in Fig.2.6. It seen that during analysed period the use of pesticides in order to get the same harvest decreased by about three times, and comparing with 1990 – nearly six times. At present in Lithuania about 0.25 kg pesticides (by active substance) are used per hectare of arable land. This experience could be rather useful for revision of EU agricultural policy and for introduction more environment friendly agricultural technologies not only in ecological farms, but in conventional farms as well. 120 Percent 100 80 60 40 20 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Annual grain harvest Pesticides consumption 2.6 Changes in the annual grain harvest and the amount of used pesticides The amount of mineral fertilisers consumed also decreased substantially. At present in Lithuania 55 kg of the active substance of SPP (sodium-phosphorus-potassium) fertilisers falls per hectare of land use per year and that is over twice as little than it is on average in the EU countries. With the consumption of mineral and especially nitrogen fertilisers being on 23 the essential decrease, the leaching of nitrogen compounds into ground and surface waters decreased to a great degree. At the beginning of the past decade 15-20 kg of nitrogen was leached from one hectare of agricultural land annually. At present this negative process is practically almost stopped. The number of organic farms in Lithuania is constantly on the increase. The year 1993 is the first year of the certification of organic farms. However, so far the area of the certified organic farms accounts for as little as 0.3% of the farming lands. The average size of an ecological farm amounts to 20 ha. Grain (40 per cent), potatoes (25 per cent) and vegetables (12 per cent) constitute the largest part of organic farms production. Milk forms the basis of ecological animal production. However, milk, beef and poultry are usually sold as usual production without the labeling of certified ecological products. The State provides support for the engaged in organic farming. Direct payments are made for a hectare of crops obtained from a certified plot of land. This support has been provided to farmers since 1997 and encouraged the increase in the ecological production. The demand for ecological products in Lithuania is on the increase. However, the infrastructure of the trade in ecological products has not been formed yet The household sector consumes about one third of energy and more than 40% of water (without energy sector) and is quite problematic from the point of sustainable consumption. General reduction of energy consumption almost by 30% to compare with 1991, was achieved mostly because of insufficient heating of dwellings rather than more efficient use of energy. The thermal properties of the constructions built in the Soviet times are very poor, and energy consumption in the heating of dwellings is very high (in average about 200 kJ per degree per day for 1 m2) and it exceeds the required energy amount in most of EU countries by more than 2-2.5 times. Therefore renovation of houses (wall warming, change of windows) is one of the most urgent tasks of the household sector. A large part of the centralized heating infrastructure is out-dated and has low energy efficiency. In particular, large energy losses are detected in distribution networks, thus, apartment-heating cost is very high and comprises approximately 20% of average family income. Water consumption in household sector was reduced almost four times during 19912002 years period, mainly because of sharply increased prices and introduction of accounting system. Daily consumption of water per person decreased from approximately 280 litres in 1991 to 70-90 litres currently and felt below of sanitary norms. Some increase in daily water 24 consumption approximately up to 120 litres is expected in nearest years along with increase of welfare. About one million tons of municipal waste is generated in Lithuania annually. By current estimations about 300 kg of municipal waste form per capita in large Lithuanian cities, 220 kg in smaller towns and in rural areas it amounts to about 70 kg. Poorly developed system of municipal waste management, absence of waste sorting infrastructure block collecting of secondary raw materials and their recycling. Storage of waste in landfills is the main way of waste disposal so far. About 850 landfills of municipal waste have been registered in Lithuania in 2000, with 350 of them being in use. The majority of landfills currently in use do not comply with environmental and sanitarian-hygienic requirements. Taking into account, that general amount of municipal and industrial waste consist almost five million tons annually and only a little bit more than 8% of them are recycled and almost 4% incinerated, modernization of waste management in Lithuania is one of the most urgent environmental problems. An essential improvement of this situation was started with implementation of a National Waste Management Strategy, approved by the Government in 2002. 3. The main provisions and objectives of Lithuanian strategy on sustainable development The Lithuanian strategy for Sustainable Development Strategy identifies sustainable development as a compromise between environmental, economic and social objectives of the society that provide opportunities to improve the welfare of present and future generations without exceeding allowable limits of environmental impact. The main objective foreseen in the strategy is to achieve the present level of EU countries according to indicators of economic and social development as well as the efficiency in consumption of resources by 2020, and not to exceed allowable EU standards, according to indicators of environmental pollution, while meeting the requirements of international conventions in the field of minimization of environmental pollution and input into global climate change. The Strategy puts special emphasis to the design and implementation of technologies that are based on scientific achievements and knowledge rather than intensive use of resources and to introduction of more environmental friendly production and consumption patterns. 25 The following Lithuanian sustainable development priorities are formulated: 1. Moderate economic growth balanced between economic branches and regions; 2. Minimization of social and economic differences between regions and within regions by preserving their identity; 3. Minimization of the impact from the main sectors (transport, industry, energy, agriculture, housing, tourism) to the environment; 4. More efficient use of natural resources and waste management; 5. Minimization of impact on human health; 6. Mitigation of global climate change and its consequences; 7. More effective protection of biodiversity and landscape; 8. Decrease of unemployment, poverty and social exclusion; 9. Enhancement of education and science roles; 10. Preservation of Lithuanian cultural identity. Following the general strategic objective, long-term economic and social development objectives and targets were mostly associated with the current EU indicators of these sectors. In order to achieve current average level of economic development until 2020, the 6% annual growth in GDP is foreseen. Taking into account, that indicators of environmental impact and environmental state (amount of emissions into the air per area unit or per capita, urban air quality, amount of waste per capita, etc.) are most often higher in EU than in Lithuania, longterm objectives are generally oriented to eco-efficiency indicators (consumption of energy and natural resources per GDP unit, amount of emissions into the air, industrial discharges or waste per unit of consumed resources, etc.). In order to achieve current EU average level according to eco-efficiency indicators during the implementation of the Strategy (2020), it is foreseen to increase eco- efficiency of different economic sectors by approximately two fold and secure that growth of the consumption of natural resources will be twice as slow as growth of production and services. Integration of environmental concerns into different economic branches and more effective use of energy and other resources are strongly emphasized in this Strategy. While implementing the eco-efficiency (dematerialization) principle, introduction of advanced technologies and production methods that are effective in terms of the consumption of natural resources, and use of secondary raw materials play a significant role. In this Strategy strong attention is given to measures related to implementation of substitution (transmaterialization) principle. It is foreseen to substitute materials hazardous to environment and human health 26 used in industry, agriculture, and household with less hazardous or non-hazardous materials and substitute nonrenewable resources, and first of all energy resources, with renewable ones. The main objectives for different economy sectors are as follows: Industry : - to increase economic and ecological efficiency of production and ensure that consumption of energy and water in industry per production of GDP unit is reduced by about twice, and, according to eco-efficiency indicators, reach the current average level of EU countries. - to increase production based on new technologies up to 20-25% of a total amount of production and, according to this indicator, come to the current average level of EU countries. - to substitute hazardous to environment and human health materials used in production with non-hazardous materials and to develop production of biological fuel and biological oil from rape and cereal production. - to increase recycling of local secondary raw materials and ensure that Lithuanian companies are able to recycle amounts of secondary raw materials foreseen in the National Strategic Waste Management Plan. - to minimize negative impact of industry to environment and ensure that cleaner production methods are introduced in not less than one third of Lithuanian industrial companies until 2015. Transport: - to increase economic and ecological efficiency of transport sector and secure that amount of consumed fuel and emissions of pollutants and greenhouse gases grow two times slower than amount of transported cargo and passengers. - to ensure that biofuel (biodiesel, bioethanol) comprises not less than 15% of fuel used by road transport until 2020 and increase the use of less polluting environment conventional fuel (liquid oil gas and compressed natural gas, low sulphur heavy fuel oil for ships). - to develop more environment friendly transport modes with special emphasis on the development of railway and inland water transport and creation of multi-modal transport systems. - to develop public transport sector by giving priority to less polluting and less noisy transport means and to expand the use of biotransport (bicycles, role-skates). 27 - to improve traffic safety and reduce a number of transport victims by approximately two times till 2010. Energy sector: - to increase electricity and heat production and distribution efficiency, two times reduce emission of pollutants and greenhouse gas per produced energy unit, reduce energy losses in distribution networks. - to reduce country’s dependence on fuel import, ensure that energy production from local renewable and waste energy resources constantly increases and comprises not less than 15% of primary energy balance until 2020, and rationally use waste for energy production. - to ensure that combined heat and power production comprises about 35% of electricity production. - to expand the use of cleaner organic fuel. - to upgrade thermoelectric power plants, secure electricity supply and do not exceed pollution limits after decommissioning of Ignalina NPP Agriculture: - to develop ecological grain and livestock production, ensure that production from ecological farms constitutes not less than 15% of all agricultural production and selling of certified ecological products in internal market – not less than 7% of total amount of food products. - to increase cultivation of rape and cereals for production of biological fuel (biodiesel, bioethanol) and biological oils and ensure that their total yield is sufficient to produce not less than 15% of fuel required to satisfy transport demands. - to ensure high quality and safety of agricultural products with special emphasis to ecological products. - to increase ecological stability of agricultural territories, reduce impact from erosion and threat to biological diversity, to increase forest area by 3-5% at the expense of nonproductive agricultural lands. - to encourage re-orientation of average and small-size farms to non-traditional alternative branches of field and livestock production and more profitable and environment friendly farming methods. - to minimize the use of mineral fertilizers and pesticides, introduce their effective control, strengthen a food quality control. 28 Household sector: - to increase energy efficiency for house heating by approximately two times and, according to this indicator, meet the current average level of EU countries. - to increase energy supply and distribution efficiency, reduce energy losses in distribution networks. - to ensure that the amount of household waste grows at a significantly slower rate than the expenditure of inhabitants. - to increase household waste sorting and delivering for recycling up 65% of general municipal waste. - to ensure that 80% of all Lithuanian inhabitants are connected to the high quality public water supply networks, and rural population has a possibility to use good quality drinking water. Summarising presented materials, conclusion can be made that positive from the point of sustainability changes took place along with transition to market economy and double increase in eco-efficiency was achieved during past decade. However, taking into account acceleration of economic growth in Lithuania, essential efforts, including changes in life style, will be needed, for further increase in efficiency of production and consumption foreseen in the Lithuanian strategy for sustainable development. 29