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Agenda 21 (Rio)

Preamble

1.1. Humanity stands at a defining moment in history. We are confronted with a perpetuation of disparities between and within nations, a worsening of poverty, hunger, ill health and illiteracy, and the continuing deterioration of the ecosystems on which we depend for our well-being. However, integration of environment and development concerns and greater attention to them will lead to the fulfilment of basic needs, improved living standards for all, better protected and managed ecosystems and a safer, more prosperous future. No nation can achieve this on its own; but together we can – in a global partnership for sustainable development.

1.2. This global partnership must build on the premises of General Assembly resolution 44/228 of 22 December 1989, which was adopted when the nations of the world called for the United Nations Conference on Environment and Development, and on the acceptance of the need to take a balanced and integrated approach to environment and development questions.

1.3. Agenda 21 addresses the pressing problems of today and also aims at preparing the world for the challenges of the next century. It reflects a global consensus and political commitment at the highest level on development and environment cooperation. Its successful implementation is first and foremost the responsibility of Governments. National strategies, plans, policies and processes are crucial in achieving this. International cooperation should support and supplement such national efforts. In this context, the United Nations system has a key role to play. Other international, regional and subregional organizations are also called upon to contribute to this effort. The broadest public participation and the active involvement of the non-governmental organizations and other groups should also be encouraged.

1.4. The developmental and environmental objectives of Agenda 21 will require a substantial flow of new and additional financial resources to developing countries, in order to cover the incremental costs for the actions they have to undertake to deal with global environmental problems and to accelerate sustainable development. Financial resources are also required for strengthening the capacity of international institutions for the implementation of Agenda 21. An indicative order-of-magnitude assessment of costs is included in each of the programme areas. This assessment will need to be examined and refined by the relevant implementing agencies and organizations.

1.5. In the implementation of the relevant programme areas identified in Agenda 21, special attention should be given to the particular circumstances facing the economies in transition. It must also be recognized that these countries are facing unprecedented challenges in transforming their economies, in some cases in the midst of considerable social and political tension.

1.6. The programme areas that constitute Agenda 21 are described in terms of the basis for action, objectives, activities and means of implementation. Agenda 21 is a dynamic programme. It will be carried out by the various actors according to the different situations, capacities and priorities of countries and regions in full respect of all the principles contained in the Rio Declaration on Environment and Development. It could evolve over time in the light of changing needs and circumstances. This process marks the beginning of a new global partnership for sustainable development.

Section ISocial & Economic DimensionsChapter 2

International Cooperation To Accelerate Sustainable Development In Developing Countries & Related Domestic Policies

Introduction


2.1. In order to meet the challenges of environment and development, States have decided to establish a new global partnership. This partnership commits all States to engage in a continuous and constructive dialogue, inspired by the need to achieve a more efficient and equitable world economy, keeping in view the increasing interdependence of the community of nations and that sustainable development should become a priority item on the agenda of the international community. It is recognized that, for the success of this new partnership, it is important to overcome confrontation and to foster a climate of genuine cooperation and solidarity. It is equally important to strengthen national and international policies and multinational cooperation to adapt to the new realities.

2.2. Economic policies of individual countries and international economic relations both have great relevance to sustainable development. The reactivation and acceleration of development requires both a dynamic and a supportive international economic environment and determined policies at the national level. It will be frustrated in the absence of either of these requirements. A supportive external economic environment is crucial. The development process will not gather momentum if the global economy lacks dynamism and stability and is beset with uncertainties. Neither will it gather momentum if the developing countries are weighted down by external indebtedness, if development finance is inadequate, if barriers restrict access to markets and if commodity prices and the terms of trade of developing countries remain depressed. The record of the 1980s was essentially negative on each of these counts and needs to be reversed. The policies and measures needed to create an international environment that is strongly supportive of national development efforts are thus vital. International cooperation in this area should be designed to complement and support – not to diminish or subsume – sound domestic economic policies, in both developed and developing countries, if global progress towards sustainable development is to be achieved.

2.3. The international economy should provide a supportive international climate for achieving environment and development goals by:

(a) Promoting sustainable development through trade liberalization;(b) Making trade and environment mutually supportive;(c) Providing adequate financial resources to developing countries and dealing with international debt;(d) Encouraging macroeconomic policies conducive to environment and development.

2.4. Governments recognize that there is a new global effort to relate the elements of the international economic system and mankind’s need for a safe and stable natural environment. Therefore, it is the intent of Governments that consensus-building at the intersection of the environmental and trade and development areas will be ongoing in existing international forums, as well as in the domestic policy of each country.

Programme Areas


A. Promoting sustainable development through trade

Basis for action

2.5. An open, equitable, secure, non-discriminatory and predictable multilateral trading system that is consistent with the goals of sustainable development and leads to the optimal distribution of global production in accordance with comparative advantage is of benefit to all trading partners. Moreover, improved market access for developing countries’ exports in conjunction with sound macroeconomic and environmental policies would have a positive environmental impact and therefore make an important contribution towards sustainable development.

2.6. Experience has shown that sustainable development requires a commitment to sound economic policies and management, an effective and predictable public administration, the integration of environmental concerns into decision-making and progress towards democratic government, in the light of country-specific conditions, which allows for full participation of all parties concerned. These attributes are essential for the fulfilment of the policy directions and objectives listed below.

2.7. The commodity sector dominates the economies of many developing countries in terms of production, employment and export earnings. An important feature of the world commodity economy in the 1980s was the prevalence of very low and declining real prices for most commodities in international markets and a resulting substantial contraction in commodity export earnings for many producing countries. The ability of those countries to mobilize, through international trade, the resources needed to finance investments required for sustainable development may be impaired by this development and by tariff and non-tariff impediments, including tariff escalation, limiting their access to export markets. The removal of existing distortions in international trade is essential. In particular, the achievement of this objective requires that there be substantial and progressive reduction in the support and protection of agriculture – covering internal regimes, market access and export subsidies – as well as of industry and other sectors, in order to avoid inflicting large losses on the more efficient producers, especially in developing countries. Thus, in agriculture, industry and other sectors, there is scope for initiatives aimed at trade liberalization and at policies to make production more responsive to environment and development needs. Trade liberalization should therefore be pursued on a global basis across economic sectors so as to contribute to sustainable development.

2.8. The international trading environment has been affected by a number of developments that have created new challenges and opportunities and have made multilateral economic cooperation of even greater importance. World trade has continued to grow faster than world output in recent years. However, the expansion of world trade has been unevenly spread, and only a limited number of developing countries have been capable of achieving appreciable growth in their exports. Protectionist pressures and unilateral policy actions continue to endanger the functioning of an open multilateral trading system, affecting particularly the export interests of developing countries. Economic integration processes have intensified in recent years and should impart dynamism to global trade and enhance the trade and development possibilities for developing countries. In recent years, a growing number of these countries have adopted courageous policy reforms involving ambitious autonomous trade liberalization, while far-reaching reforms and profound restructuring processes are taking place in Central and Eastern European countries, paving the way for their integration into the world economy and the international trading system. Increased attention is being devoted to enhancing the role of enterprises and promoting competitive markets through adoption of competitive policies. The GSP has proved to be a useful trade policy instrument, although its objectives will have to be fulfilled, and trade facilitation strategies relating to electronic data interchange (EDI) have been effective in improving the trading efficiency of the public and private sectors. The interactions between environment policies and trade issues are manifold and have not yet been fully assessed. An early, balanced, comprehensive and successful outcome of the Uruguay Round of multilateral trade negotiations would bring about further liberalization and expansion of world trade, enhance the trade and development possibilities of developing countries and provide greater security and predictability to the international trading system.

Objectives

2.9. In the years ahead, and taking into account the results of the Uruguay Round of multilateral trade negotiations, Governments should continue to strive to meet the following objectives:

(a) To promote an open, non-discriminatory and equitable multilateral trading system that will enable all countries – in particular, the developing countries – to improve their economic structures and improve the standard of living of their populations through sustained economic development;(b) To improve access to markets for exports of developing countries;(c) To improve the functioning of commodity markets and achieve sound, compatible and consistent commodity policies at national and international levels with a view to optimizing the contribution of the commodity sector to sustainable development, taking into account environmental considerations;(d)To promote and support policies, domestic and international, that make economic growth and environmental protection mutually supportive.

Activities

A) International and regional cooperation and coordination

  • Promoting an international trading system that takes account of the needs of developing countries

2.10. Accordingly, the international community should:

(a) Halt and reverse protectionism in order to bring about further liberalization and expansion of world trade, to the benefit of all countries, in particular the developing countries;(b) Provide for an equitable, secure, non-discriminatory and predictable international trading system;(c) Facilitate, in a timely way, the integration of all countries into the world economy and the international trading system;(d) Ensure that environment and trade policies are mutually supportive, with a view to achieving sustainable development;(e) Strengthen the international trade policies system through an early, balanced, comprehensive and successful outcome of the Uruguay Round of multilateral trade negotiations.

2.11. The international community should aim at finding ways and means of achieving a better functioning and enhanced transparency of commodity markets, greater diversification of the commodity sector in developing economies within a macroeconomic framework that takes into consideration a country’s economic structure, resource endowments and market opportunities, and better management of natural resources that takes into account the necessities of sustainable development.

2.12. Therefore, all countries should implement previous commitments to halt and reverse protectionism and further expand market access, particularly in areas of interest to developing countries. This improvement of market access will be facilitated by appropriate structural adjustment in developed countries. Developing countries should continue the trade-policy reforms and structural adjustment they have undertaken. It is thus urgent to achieve an improvement in market access conditions for commodities, notably through the progressive removal of barriers that restrict imports, particularly from developing countries, of commodity products in primary and processed forms, as well as the substantial and progressive reduction of types of support that induce uncompetitive production, such as production and export subsidies.

B) Management related activities

  • Developing domestic policies that maximize the benefits of trade liberalization for sustainable development

2.13. For developing countries to benefit from the liberalization of trading systems, they should implement the following policies, as appropriate:

(a) Create a domestic environment supportive of an optimal balance between production for the domestic and export markets and remove biases against exports and discourage inefficient import-substitution;(b) Promote the policy framework and the infrastructure required to improve the efficiency of export and import trade as well as the functioning of domestic markets.

2.14. The following policies should be adopted by developing countries with respect to commodities consistent with market efficiency:

(a) Expand processing, distribution and improve marketing practices and the competitiveness of the commodity sector;(b) Diversify in order to reduce dependence on commodity exports;(c) Reflect efficient and sustainable use of factors of production in the formation of commodity prices, including the reflection of environmental, social and resources costs.

C) Data and information

  • Encouraging data collection and research

2.15. GATT, UNCTAD and other relevant institutions should continue to collect appropriate trade data and information. The Secretary-General of the United Nations is requested to strengthen the Trade Control Measures Information System managed by UNCTAD.

  • Improving international cooperation in commodity trade and the diversification of the sector

2.16. With regard to commodity trade, Governments should, directly or through appropriate international organizations, where appropriate:

(a)  Seek optimal functioning of commodity markets, inter alia, through improved market transparency involving exchanges of views and information on investment plans, prospects and markets for individual commodities. Substantive negotiations between producers and consumers should be pursued with a view to achieving viable and more efficient international agreements that take into account market trends, or arrangements, as well as study groups. In this regard, particular attention should be paid to the agreements on cocoa, coffee, sugar and tropical timber. The importance of international commodity agreements and arrangements is underlined. Occupational health and safety matters, technology transfer and services associated with the production, marketing and promotion of commodities, as well as environmental considerations, should be taken into account;(b)  Continue to apply compensation mechanisms for shortfalls in commodity export earnings of developing countries in order to encourage diversification efforts;(c)  Provide assistance to developing countries upon request in the design and implementation of commodity policies and the gathering and utilization of information on commodity markets;(d)  Support the efforts of developing countries to promote the policy framework and infrastructure required to improve the efficiency of export and import trade;(e)  Support the diversification initiatives of the developing countries at the national, regional and international levels.

Means of implementation

A)  Financing and cost evaluation

2.17. The Conference secretariat has estimated the average total annual cost (1993-2000) of implementing the activities in this programme area to be about $8.8 billion from the international community on grant or concessional terms. These are indicative and order-of-magnitude estimates only and have not been reviewed by Governments. Actual costs and financial terms, including any that are non-concessional, will depend upon, inter alia, the specific strategies and programmes Governments decide upon for implementation.

B) Capacity-building

2.18. The above-mentioned technical cooperation activities aim at strengthening national capabilities for design and implementation of commodity policy, use and management of national resources and the gathering and utilization of information on commodity markets.


B. Making trade and environment mutually supportive

Basis for action

2.19. Environment and trade policies should be mutually supportive. An open, multilateral trading system makes possible a more efficient allocation and use of resources and thereby contributes to an increase in production and incomes and to lessening demands on the environment. It thus provides additional resources needed for economic growth and development and improved environmental protection. A sound environment, on the other hand, provides the ecological and other resources needed to sustain growth and underpin a continuing expansion of trade. An open, multilateral trading system, supported by the adoption of sound environmental policies, would have a positive impact on the environment and contribute to sustainable development.

2.20. International cooperation in the environmental field is growing, and in a number of cases trade provisions in multilateral environment agreements have played a role in tackling global environmental challenges. Trade measures have thus been used in certain specific instances, where considered necessary, to enhance the effectiveness of environmental regulations for the protection of the environment. Such regulations should address the root causes of environmental degradation so as not to result in unjustified restrictions on trade. The challenge is to ensure that trade and environment policies are consistent and reinforce the process of sustainable development. However, account should be taken of the fact that environmental standards valid for developed countries may have unwarranted social and economic costs in developing countries.

Objectives

2.21. Governments should strive to meet the following objectives, through relevant multilateral forums, including GATT, UNCTAD and other international organizations:

(a)  To make international trade and environment policies mutually supportive in favour of sustainable development;(b)  To clarify the role of GATT, UNCTAD and other international organizations in dealing with trade and environment-related issues, including, where relevant, conciliation procedure and dispute settlement;(c)  To encourage international productivity and competitiveness and encourage a constructive role on the part of industry in dealing with environment and development issues.

Activities

  • Developing an environment/trade and development agenda

2.22. Governments should encourage GATT, UNCTAD and other relevant international and regional economic institutions to examine, in accordance with their respective mandates and competences, the following propositions and principles:

(a)  Elaborate adequate studies for the better understanding of the relationship between trade and environment for the promotion of sustainable development;(b)  Promote a dialogue between trade, development and environment communities;(c)  In those cases when trade measures related to environment are used, ensure transparency and compatibility with international obligations;(d)  Deal with the root causes of environment and development problems in a manner that avoids the adoption of environmental measures resulting in unjustified restrictions on trade;(e)  Seek to avoid the use of trade restrictions or distortions as a means to offset differences in cost arising from differences in environmental standards and regulations, since their application could lead to trade distortions and increase protectionist tendencies;(f)  Ensure that environment-related regulations or standards, including those related to health and safety standards, do not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade;(g)  Ensure that special factors affecting environment and trade policies in the developing countries are borne in mind in the application of environmental standards, as well as in the use of any trade measures. It is worth noting that standards that are valid in the most advanced countries may be inappropriate and of unwarranted social cost for the developing countries;(h)  Encourage participation of developing countries in multilateral agreements through such mechanisms as special transitional rules;(i)  Avoid unilateral actions to deal with environmental challenges outside the jurisdiction of the importing country. Environmental measures addressing transborder or global environmental problems should, as far as possible, be based on an international consensus. Domestic measures targeted to achieve certain environmental objectives may need trade measures to render them effective. Should trade policy measures be found necessary for the enforcement of environmental policies, certain principles and rules should apply. These could include, inter alia, the principle of non-discrimination; the principle that the trade measure chosen should be the least trade-restrictive necessary to achieve the objectives; an obligation to ensure transparency in the use of trade measures related to the environment and to provide adequate notification of national regulations; and the need to give consideration to the special conditions and developmental requirements of developing countries as they move towards internationally agreed environmental objectives;(j)  Develop more precision, where necessary, and clarify the relationship between GATT provisions and some of the multilateral measures adopted in the environment area;(k)  Ensure public input in the formation, negotiation and implementation of trade policies as a means of fostering increased transparency in the light of country-specific conditions;(l)  Ensure that environmental policies provide the appropriate legal and institutional framework to respond to new needs for the protection of the environment that may result from changes in production and trade specialization.


C. Providing adequate financial resources to developing countries

Basis for action

2.23. Investment is critical to the ability of developing countries to achieve needed economic growth to improve the welfare of their populations and to meet their basic needs in a sustainable manner, all without deteriorating or depleting the resource base that underpins development. Sustainable development requires increased investment, for which domestic and external financial resources are needed. Foreign private investment and the return of flight capital, which depend on a healthy investment climate, are an important source of financial resources. Many developing countries have experienced a decade-long situation of negative net transfer of financial resources, during which their financial receipts were exceeded by payments they had to make, in particular for debt-servicing. As a result, domestically mobilized resources had to be transferred abroad instead of being invested locally in order to promote sustainable economic development.

2.24. For many developing countries, the reactivation of development will not take place without an early and durable solution to the problems of external indebtedness, taking into account the fact that, for many developing countries, external debt burdens are a significant problem. The burden of debt-service payments on those countries has imposed severe constraints on their ability to accelerate growth and eradicate poverty and has led to a contraction in imports, investment and consumption. External indebtedness has emerged as a main factor in the economic stalemate in the developing countries. Continued vigorous implementation of the evolving international debt strategy is aimed at restoring debtor countries’ external financial viability, and the resumption of their growth and development would assist in achieving sustainable growth and development. In this context, additional financial resources in favour of developing countries and the efficient utilization of such resources are essential.

Objectives

2.25. The specific requirements for the implementation of the sectoral and cross-sectoral programmes included in Agenda 21 are dealt with in the relevant programme areas and in chapter 33 (Financial resources and mechanisms).

Activities

A) Meeting international targets of official development assistance funding

2.26. As discussed in chapter 33, new and additional resources should be provided to support Agenda 21 programmes.

B) Addressing the debt issue

2.27. In regard to the external debt incurred with commercial banks, the progress being made under the strengthened debt strategy is recognized and a more rapid implementation of this strategy is encouraged. Some countries have already benefited from the combination of sound adjustment policies and commercial bank debt reduction or equivalent measures. The international community encourages:

(a)  Other countries with heavy debts to banks to negotiate similar commercial bank debt reduction with their creditors;(b)  The parties to such a negotiation to take due account of both the medium-term debt reduction and new money requirements of the debtor country;(c)  Multilateral institutions actively engaged in the strengthened international debt strategy to continue to support debt-reduction packages related to commercial bank debt with a view to ensuring that the magnitude of such financing is consonant with the evolving debt strategy;(d)  Creditor banks to participate in debt and debt-service reduction;(e)  Strengthened policies to attract direct investment, avoid unsustainable levels of debt and foster the return of flight capital.

2.28. With regard to debt owed to official bilateral creditors, the recent measures taken by the Paris Club with regard to more generous terms of relief to the poorest most indebted countries are welcomed. Ongoing efforts to implement these “Trinidad terms” measures in a manner commensurate with the payments capacity of those countries and in a way that gives additional support to their economic reform efforts are welcomed. The substantial bilateral debt reduction undertaken by some creditor countries is also welcomed, and others which are in a position to do so are encouraged to take similar action.

2.29. The actions of low-income countries with substantial debt burdens which continue, at great cost, to service their debt and safeguard their creditworthiness are commended. Particular attention should be paid to their resource needs. Other debt-distressed developing countries which are making great efforts to continue to service their debt and meet their external financial obligations also deserve due attention.

2.30. In connection with multilateral debt, it is urged that serious attention be given to continuing to work towards growth-oriented solutions to the problem of developing countries with serious debt-servicing problems, including those whose debt is mainly to official creditors or to multilateral financial institutions. Particularly in the case of low-income countries in the process of economic reform, the support of the multilateral financial institutions in the form of new disbursements and the use of their concessional funds is welcomed. The use of support groups should be continued in providing resources to clear arrears of countries embarking upon vigorous economic reform programmes supported by IMF and the World Bank. Measures by the multilateral financial institutions such as the refinancing of interest on non-concessional loans with IDA reflows – “fifth dimension” – are noted with appreciation.

Means of implementation

Financing and cost evaluation* See chap. 33 (Financial resources and mechanisms).


D. Encouraging economic policies conducive to sustainable development

Basis for action

2.31. The unfavourable external environment facing developing countries makes domestic resource mobilization and efficient allocation and utilization of domestically mobilized resources all the more important for the promotion of sustainable development. In a number of countries, policies are necessary to correct misdirected public spending, large budget deficits and other macroeconomic imbalances, restrictive policies and distortions in the areas of exchange rates, investment and finance, and obstacles to entrepreneurship. In developed countries, continuing policy reform and adjustment, including appropriate savings rates, would help generate resources to support the transition to sustainable development both domestically and in developing countries.

2.32. Good management that fosters the association of effective, efficient, honest, equitable and accountable public administration with individual rights and opportunities is an essential element for sustainable, broadly based development and sound economic performance at all development levels. All countries should increase their efforts to eradicate mismanagement of public and private affairs, including corruption, taking into account the factors responsible for, and agents involved in, this phenomenon.

2.33. Many indebted developing countries are undergoing structural adjustment programmes relating to debt rescheduling or new loans. While such programmes are necessary for improving the balance in fiscal budgets and balance-of-payments accounts, in some cases they have resulted in adverse social and environmental effects, such as cuts in allocations for health care, education and environmental protection. It is important to ensure that structural adjustment programmes do not have negative impacts on the environment and social development so that such programmes can be more in line with the objectives of sustainable development.

Objectives

2.34. It is necessary to establish, in the light of the country-specific conditions, economic policy reforms that promote the efficient planning and utilization of resources for sustainable development through sound economic and social policies, foster entrepreneurship and the incorporation of social and environmental costs in resource pricing, and remove sources of distortion in the area of trade and investment.

Activities

A) Management-related activities

  • Promoting sound economic policies

2.35. The industrialized countries and other countries in a position to do so should strengthen their efforts:

(a)  To encourage a stable and predictable international economic environment, particularly with regard to monetary stability, real rates of interest and fluctuations in key exchange rates;(b)  To stimulate savings and reduce fiscal deficits;(c)  To ensure that the processes of policy coordination take into account the interests and concerns of the developing countries, including the need to promote positive action to support the efforts of the least developed countries to halt their marginalization in the world economy;(d)  To undertake appropriate national macroeconomic and structural policies aimed at promoting non-inflationary growth, narrowing their major external imbalances and increasing the adjustment capacity of their economies.

2.36. Developing countries should consider strengthening their efforts to implement sound economic policies:

(a)  That maintain the monetary and fiscal discipline required to promote price stability and external balance;(b)  That result in realistic exchange rates;(c)  That raise domestic savings and investment, as well as improve returns to investment.

2.37. More specifically, all countries should develop policies that improve efficiency in the allocation of resources and take full advantage of the opportunities offered by the changing global economic environment. In particular, wherever appropriate, and taking into account national strategies and objectives, countries should:

(a)  Remove the barriers to progress caused by bureaucratic inefficiencies, administrative strains, unnecessary controls and the neglect of market conditions;(b)  Promote transparency in administration and decision-making;(c)  Encourage the private sector and foster entrepreneurship by improving institutional facilities for enterprise creation and market entry. The essential objective would be to simplify or remove the restrictions, regulations and formalities that make it more complicated, costly and time-consuming to set up and operate enterprises in many developing countries;(d)  Promote and support the investment and infrastructure required for sustainable economic growth and diversification on an environmentally sound and sustainable basis;(e)  Provide scope for appropriate economic instruments, including market mechanisms, in harmony with the objectives of sustainable development and fulfilment of basic needs;(f)  Promote the operation of effective tax systems and financial sectors;(g)  Provide opportunities for small-scale enterprises, both farm and non-farm, and for the indigenous population and local communities to contribute fully to the attainment of sustainable development;(h)  Remove biases against exports and in favour of inefficient import substitution and establish policies that allow them to benefit fully from the flows of foreign investment, within the framework of national, social, economic and developmental goals;(i)  Promote the creation of a domestic economic environment supportive of an optimal balance between production for the domestic and export markets.

B) International and regional cooperation and coordination

2.38. Governments of developed countries and those of other countries in a position to do so should, directly or through appropriate international and regional organizations and international lending institutions, enhance their efforts to provide developing countries with increased technical assistance for the following:

(a)  Capacity-building in the nation’s design and implementation of economic policies, upon request;(b)  Design and operation of efficient tax systems, accounting systems and financial sectors;(c)  Promotion of entrepreneurship.

2.39. International financial and development institutions should further review their policies and programmes in the light of the objective of sustainable development.

2.40. Stronger economic cooperation among developing countries has long been accepted as an important component of efforts to promote economic growth and technological capabilities and to accelerate development in the developing world. Therefore, the efforts of the developing countries to promote economic cooperation among themselves should be enhanced and continue to be supported by the international community.

Means of implementation

A) Financing and cost evaluation

2.41. The Conference secretariat has estimated the average total annual cost (1993-2000) of implementing the activities in this programme area to be about $50 million from the international community on grant or concessional terms. These are indicative and order-of-magnitude estimates only and have not been reviewed by Governments. Actual costs and financial terms, including any that are non-concessional, will depend upon, inter alia, the specific strategies and programmes Governments decide upon for implementation.

B) Capacity-building

2.42. The above-mentioned policy changes in developing countries involve substantial national efforts for capacity-building in the areas of public administration, central banking, tax administration, savings institutions and financial markets.

2.43. Particular efforts in the implementation of the four programme areas identified in this chapter are warranted in view of the especially acute environmental and developmental problems of the least developed countries.

Section IIConservation & Management of Resources for DevelopmentChapter 9

Protection of the Atmoshpere

Introduction


9.1. Protection of the atmosphere is a broad and multidimensional endeavour involving various sectors of economic activity. The options and measures described in the present chapter are recommended for consideration and, as appropriate, implementation by Governments and other bodies in their efforts to protect the atmosphere.

9.2. It is recognized that many of the issues discussed in this chapter are also addressed in such international agreements as the 1985 Vienna Convention for the Protection of the Ozone Layer, the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer as amended, the 1992 United Nations Framework Convention on Climate Change and other international, including regional, instruments. In the case of activities covered by such agreements, it is understood that the recommendations contained in this chapter do not oblige any Government to take measures which exceed the provisions of these legal instruments. However, within the framework of this chapter, Governments are free to carry out additional measures which are consistent with those legal instruments.

9.3. It is also recognized that activities that may be undertaken in pursuit of the objectives of this chapter should be coordinated with social and economic development in an integrated manner with a view to avoiding adverse impacts on the latter, taking into full account the legitimate priority needs of developing countries for the achievement of sustained economic growth and the eradication of poverty.

9.4. In this context particular reference is also made to programme area A of chapter 2 of Agenda 21 (Promoting sustainable development through trade).

9.5. The present chapter includes the following four programme areas:

A) Addressing the uncertainties: improving the scientific basis for decision-making;

B) Promoting sustainable development:

  1. Energy development, efficiency and consumption;
  2. Transportation;
  3. Industrial development;
  4. Terrestrial and marine resource development and land use;

C) Preventing stratospheric ozone depletion;

D) Transboundary atmospheric pollution.

PROGRAMME AREAS


A. Addressing the uncertainties: improving the scientific basis for decision-making

Basis for action

9.6. Concern about climate change and climate variability, air pollution and ozone depletion has created new demands for scientific, economic and social information to reduce the remaining uncertainties in these fields. Better understanding and prediction of the various properties of the atmosphere and of the affected ecosystems, as well as health impacts and their interactions with socio-economic factors, are needed.

Objectives

9.7. The basic objective of this programme area is to improve the understanding of processes that influence and are influenced by the Earth’s atmosphere on a global, regional and local scale, including, inter alia, physical, chemical, geological, biological, oceanic, hydrological, economic and social processes; to build capacity and enhance international cooperation; and to improve understanding of the economic and social consequences of atmospheric changes and of mitigation and response measures addressing such changes.

Activities

9.8. Governments at the appropriate level, with the cooperation of the relevant United Nations bodies and, as appropriate, intergovernmental and non-governmental organizations, and the private sector, should:

(a) Promote research related to the natural processes affecting and being affected by the atmosphere, as well as the critical linkages between sustainable development and atmospheric changes, including impacts on human health, ecosystems, economic sectors and society;(b) Ensure a more balanced geographical coverage of the Global Climate Observing System and its components, including the Global Atmosphere Watch, by facilitating, inter alia, the establishment and operation of additional systematic observation stations, and by contributing to the development, utilization and accessibility of these databases;(c) Promote cooperation in:

  1. The development of early detection systems concerning changes and fluctuations in the atmosphere;
  2. The establishment and improvement of capabilities to predict such changes and fluctuations and to assess the resulting environmental and socio-economic impacts;

(d) Cooperate in research to develop methodologies and identify threshold levels of atmospheric pollutants, as well as atmospheric levels of greenhouse gas concentrations, that would cause dangerous anthropogenic interference with the climate system and the environment as a whole, and the associated rates of change that would not allow ecosystems to adapt naturally;(e) Promote, and cooperate in the building of scientific capacities, the exchange of scientific data and information, and the facilitation of the participation and training of experts and technical staff, particularly of developing countries, in the fields of research, data assembly, collection and assessment, and systematic observation related to the atmosphere.


B. Promoting sustainable development

1. Energy development, efficiency and consumption

Basis for action

9.9. Energy is essential to economic and social development and improved quality of life. Much of the world’s energy, however, is currently produced and consumed in ways that could not be sustained if technology were to remain constant and if overall quantities were to increase substantially. The need to control atmospheric emissions of greenhouse and other gases and substances will increasingly need to be based on efficiency in energy production, transmission, distribution and consumption, and on growing reliance on environmentally sound energy systems, particularly new and renewable sources of energy. 1/ All energy sources will need to be used in ways that respect the atmosphere, human health and the environment as a whole.

9.10. The existing constraints to increasing the environmentally sound energy supplies required for pursuing the path towards sustainable development, particularly in developing countries, need to be removed.

Objectives

9.11. The basic and ultimate objective of this programme area is to reduce adverse effects on the atmosphere from the energy sector by promoting policies or programmes, as appropriate, to increase the contribution of environmentally sound and cost-effective energy systems, particularly new and renewable ones, through less polluting and more efficient energy production, transmission, distribution and use. This objective should reflect the need for equity, adequate energy supplies and increasing energy consumption in developing countries, and should take into consideration the situations of countries that are highly dependent on income generated from the production, processing and export, and/or consumption of fossil fuels and associated energy-intensive products and/or the use of fossil fuels for which countries have serious difficulties in switching to alternatives, and the situations of countries highly vulnerable to adverse effects of climate change.

Activities

9.12. Governments at the appropriate level, with the cooperation of the relevant United Nations bodies and, as appropriate, intergovernmental and non-governmental organizations, and the private sector, should:

(a) Cooperate in identifying and developing economically viable, environmentally sound energy sources to promote the availability of increased energy supplies to support sustainable development efforts, in particular in developing countries;(b) Promote the development at the national level of appropriate methodologies for making integrated energy, environment and economic policy decisions for sustainable development, inter alia, through environmental impact assessments;(c) Promote the research, development, transfer and use of improved energy-efficient technologies and practices, including endogenous technologies in all relevant sectors, giving special attention to the rehabilitation and modernization of power systems, with particular attention to developing countries;(d) Promote the research, development, transfer and use of technologies and practices for environmentally sound energy systems, including new and renewable energy systems, with particular attention to developing countries;(e) Promote the development of institutional, scientific, planning and management capacities, particularly in developing countries, to develop, produce and use increasingly efficient and less polluting forms of energy;(f) Review current energy supply mixes to determine how the contribution of environmentally sound energy systems as a whole, particularly new and renewable energy systems, could be increased in an economically efficient manner, taking into account respective countries’ unique social, physical, economic and political characteristics, and examining and implementing, where appropriate, measures to overcome any barriers to their development and use;(g) Coordinate energy plans regionally and subregionally, where applicable, and study the feasibility of efficient distribution of environmentally sound energy from new and renewable energy sources;(h) In accordance with national socio-economic development and environment priorities, evaluate and, as appropriate, promote cost-effective policies or programmes, including administrative, social and economic measures, in order to improve energy efficiency;(i) Build capacity for energy planning and programme management in energy efficiency, as well as for the development, introduction, and promotion of new and renewable sources of energy;(j) Promote appropriate energy efficiency and emission standards or recommendations at the national level, 2/ aimed at the development and use of technologies that minimize adverse impacts on the environment;(k) Encourage education and awareness-raising programmes at the local, national, subregional and regional levels concerning energy efficiency and environmentally sound energy systems;(l) Establish or enhance, as appropriate, in cooperation with the private sector, labelling programmes for products to provide decision makers and consumers with information on opportunities for energy efficiency.

2. Transportation

Basis for action

9.13. The transport sector has an essential and positive role to play in economic and social development, and transportation needs will undoubtedly increase. However, since the transport sector is also a source of atmospheric emissions, there is need for a review of existing transport systems and for more effective design and management of traffic and transport systems.

Objectives

9.14. The basic objective of this programme area is to develop and promote cost-effective policies or programmes, as appropriate, to limit, reduce or control, as appropriate, harmful emissions into the atmosphere and other adverse environmental effects of the transport sector, taking into account development priorities as well as the specific local and national circumstances and safety aspects.

Activities

9.15. Governments at the appropriate level, with the cooperation of the relevant United Nations bodies and, as appropriate, intergovernmental and non-governmental organizations, and the private sector, should:

(a) Develop and promote, as appropriate, cost-effective, more efficient, less polluting and safer transport systems, particularly integrated rural and urban mass transit, as well as environmentally sound road networks, taking into account the needs for sustainable social, economic and development priorities, particularly in developing countries;(b) Facilitate at the international, regional, subregional and national levels access to and the transfer of safe, efficient, including resource-efficient, and less polluting transport technologies, particularly to the developing countries, including the implementation of appropriate training programmes;(c) Strengthen, as appropriate, their efforts at collecting, analysing and exchanging relevant information on the relation between environment and transport, with particular emphasis on the systematic observation of emissions and the development of a transport database;(d) In accordance with national socio-economic development and environment priorities, evaluate and, as appropriate, promote cost-effective policies or programmes, including administrative, social and economic measures, in order to encourage use of transportation modes that minimize adverse impacts on the atmosphere;(e) Develop or enhance, as appropriate, mechanisms to integrate transport planning strategies and urban and regional settlement planning strategies, with a view to reducing the environmental impacts of transport;(f) Study, within the framework of the United Nations and its regional commissions, the feasibility of convening regional conferences on transport and the environment.

3. Industrial development

Basis for action

9.16. Industry is essential for the production of goods and services and is a major source of employment and income, and industrial development as such is essential for economic growth. At the same time, industry is a major resource and materials user and consequently industrial activities result in emissions into the atmosphere and the environment as a whole. Protection of the atmosphere can be enhanced, inter alia, by increasing resource and materials efficiency in industry, installing or improving pollution abatement technologies and replacing chlorofluorocarbons (CFCs) and other ozone-depleting substances with appropriate substitutes, as well as by reducing wastes and by-products.

Objectives

9.17. The basic objective of this programme area is to encourage industrial development in ways that minimize adverse impacts on the atmosphere by, inter alia, increasing efficiency in the production and consumption by industry of all resources and materials, by improving pollution-abatement technologies and by developing new environmentally sound technologies.

Activities

9.18. Governments at the appropriate level, with the cooperation of the relevant United Nations bodies and, as appropriate, intergovernmental and non-governmental organizations, and the private sector, should:

(a) In accordance with national socio-economic development and environment priorities, evaluate and, as appropriate, promote cost-effective policies or programmes, including administrative, social and economic measures, in order to minimize industrial pollution and adverse impacts on the atmosphere;(b) Encourage industry to increase and strengthen its capacity to develop technologies, products and processes that are safe, less polluting and make more efficient use of all resources and materials, including energy;(c) Cooperate in the development and transfer of such industrial technologies and in the development of capacities to manage and use such technologies, particularly with respect to developing countries;(d) Develop, improve and apply environmental impact assessments to foster sustainable industrial development;(e) Promote efficient use of materials and resources, taking into account the life cycles of products, in order to realize the economic and environmental benefits of using resources more efficiently and producing fewer wastes;(f) Support the promotion of less polluting and more efficient technologies and processes in industries, taking into account area-specific accessible potentials for energy, particularly safe and renewable sources of energy, with a view to limiting industrial pollution, and adverse impacts on the atmosphere.

4. Terrestrial and marine resource development and land use

Basis for action

9.19. Land-use and resource policies will both affect and be affected by changes in the atmosphere. Certain practices related to terrestrial and marine resources and land use can decrease greenhouse gas sinks and increase atmospheric emissions. The loss of biological diversity may reduce the resilience of ecosystems to climatic variations and air pollution damage. Atmospheric changes can have important impacts on forests, biodiversity, and freshwater and marine ecosystems, as well as on economic activities, such as agriculture. Policy objectives in different sectors may often diverge and will need to be handled in an integrated manner.

Objectives

9.20. The objectives of this programme area are:

(a) To promote terrestrial and marine resource utilization and appropriate land-use practices that contribute to:

  1. The reduction of atmospheric pollution and/or the limitation of anthropogenic emissions of greenhouse gases;
  2. The conservation, sustainable management and enhancement, where appropriate, of all sinks for greenhouse gases;
  3. The conservation and sustainable use of natural and environmental resources;

(b) To ensure that actual and potential atmospheric changes and their socio-economic and ecological impacts are fully taken into account in planning and implementing policies and programmes concerning terrestrial and marine resources utilization and land-use practices.

Activities

9.21. Governments at the appropriate level, with the cooperation of the relevant United Nations bodies and, as appropriate, intergovernmental and non-governmental organizations, and the private sector, should:

(a) In accordance with national socio-economic development and environment priorities, evaluate and, as appropriate, promote cost-effective policies or programmes, including administrative, social and economic measures, in order to encourage environmentally sound land-use practices;(b) Implement policies and programmes that will discourage inappropriate and polluting land-use practices and promote sustainable utilization of terrestrial and marine resources;(c) Consider promoting the development and use of terrestrial and marine resources and land-use practices that will be more resilient to atmospheric changes and fluctuations;(d) Promote sustainable management and cooperation in the conservation and enhancement, as appropriate, of sinks and reservoirs of greenhouse gases, including biomass, forests and oceans, as well as other terrestrial, coastal and marine ecosystems.


C. Preventing stratospheric ozone depletion

Basis for action

9.22. Analysis of recent scientific data has confirmed the growing concern about the continuing depletion of the Earth’s stratospheric ozone layer by reactive chlorine and bromine from man-made CFCs, halons and related substances. While the 1985 Vienna Convention for the Protection of the Ozone Layer and the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer (as amended in London in 1990) were important steps in international action, the total chlorine loading of the atmosphere of ozone-depleting substances has continued to rise. This can be changed through compliance with the control measures identified within the Protocol.

Objectives

9.23. The objectives of this programme area are:

(a) To realize the objectives defined in the Vienna Convention and the Montreal Protocol and its 1990 amendments, including the consideration in those instruments of the special needs and conditions of the developing countries and the availability to them of alternatives to substances that deplete the ozone layer. Technologies and natural products that reduce demand for these substances should be encouraged;(b) To develop strategies aimed at mitigating the adverse effects of ultraviolet radiation reaching the Earth’s surface as a consequence of depletion and modification of the stratospheric ozone layer.

Activities

9.24. Governments at the appropriate level, with the cooperation of the relevant United Nations bodies and, as appropriate, intergovernmental and non-governmental organizations, and the private sector, should:

(a) Ratify, accept or approve the Montreal Protocol and its 1990 amendments; pay their contributions towards the Vienna/Montreal trust funds and the interim multilateral ozone fund promptly; and contribute, as appropriate, towards ongoing efforts under the Montreal Protocol and its implementing mechanisms, including making available substitutes for CFCs and other ozone-depleting substances and facilitating the transfer of the corresponding technologies to developing countries in order to enable them to comply with the obligations of the Protocol;(b) Support further expansion of the Global Ozone Observing System by facilitating – through bilateral and multilateral funding – the establishment and operation of additional systematic observation stations, especially in the tropical belt in the southern hemisphere;(c) Participate actively in the continuous assessment of scientific information and the health and environmental effects, as well as of the technological/economic implications of stratospheric ozone depletion; and consider further actions that prove warranted and feasible on the basis of these assessments;(d) Based on the results of research on the effects of the additional ultraviolet radiation reaching the Earth’s surface, consider taking appropriate remedial measures in the fields of human health, agriculture and marine environment;(e) Replace CFCs and other ozone-depleting substances, consistent with the Montreal Protocol, recognizing that a replacement’s suitability should be evaluated holistically and not simply based on its contribution to solving one atmospheric or environmental problem.


D. Transboundary atmospheric pollution

Basis for action

9.25. Transboundary air pollution has adverse health impacts on humans and other detrimental environmental impacts, such as tree and forest loss and the acidification of water bodies. The geographical distribution of atmospheric pollution monitoring networks is uneven, with the developing countries severely underrepresented. The lack of reliable emissions data outside Europe and North America is a major constraint to measuring transboundary air pollution. There is also insufficient information on the environmental and health effects of air pollution in other regions.

9.26. The 1979 Convention on Long-range Transboundary Air Pollution, and its protocols, have established a regional regime in Europe and North America, based on a review process and cooperative programmes for systematic observation of air pollution, assessment and information exchange. These programmes need to be continued and enhanced, and their experience needs to be shared with other regions of the world.

Objectives

9.27. The objectives of this programme area are:

(a) To develop and apply pollution control and measurement technologies for stationary and mobile sources of air pollution and to develop alternative environmentally sound technologies;(b) To observe and assess systematically the sources and extent of transboundary air pollution resulting from natural processes and anthropogenic activities;(c) To strengthen the capabilities, particularly of developing countries, to measure, model and assess the fate and impacts of transboundary air pollution, through, inter alia, exchange of information and training of experts;(d) To develop capabilities to assess and mitigate transboundary air pollution resulting from industrial and nuclear accidents, natural disasters and the deliberate and/or accidental destruction of natural resources;(e) To encourage the establishment of new and the implementation of existing regional agreements for limiting transboundary air pollution;(f) To develop strategies aiming at the reduction of emissions causing transboundary air pollution and their effects.

Activities

9.28. Governments at the appropriate level, with the cooperation of the relevant United Nations bodies and, as appropriate, intergovernmental and non-governmental organizations, the private sector and financial institutions, should:

(a) Establish and/or strengthen regional agreements for transboundary air pollution control and cooperate, particularly with developing countries, in the areas of systematic observation and assessment, modelling and the development and exchange of emission control technologies for mobile and stationary sources of air pollution. In this context, greater emphasis should be put on addressing the extent, causes, health and socio-economic impacts of ultraviolet radiation, acidification of the environment and photo-oxidant damage to forests and other vegetation;(b) Establish or strengthen early warning systems and response mechanisms for transboundary air pollution resulting from industrial accidents and natural disasters and the deliberate and/or accidental destruction of natural resources;(c) Facilitate training opportunities and exchange of data, information and national and/or regional experiences;(d) Cooperate on regional, multilateral and bilateral bases to assess transboundary air pollution, and elaborate and implement programmes identifying specific actions to reduce atmospheric emissions and to address their environmental, economic, social and other effects.

Means of implementation

  • International and regional cooperation

9.29. Existing legal instruments have created institutional structures which relate to the purposes of these instruments, and relevant work should primarily continue in those contexts. Governments should continue to cooperate and enhance their cooperation at the regional and global levels, including cooperation within the United Nations system. In this context reference is made to the recommendations in chapter 38 of Agenda 21 (International institutional arrangements).

  • Capacity-building

9.30. Countries, in cooperation with the relevant United Nations bodies, international donors and non-governmental organizations, should mobilize technical and financial resources and facilitate technical cooperation with developing countries to reinforce their technical, managerial, planning and administrative capacities to promote sustainable development and the protection of the atmosphere, in all relevant sectors.

Human resource development

9.31. Education and awareness-raising programmes concerning the promotion of sustainable development and the protection of the atmosphere need to be introduced and strengthened at the local, national and international levels in all relevant sectors.

Financial and cost evaluation

9.32. The Conference secretariat has estimated the average total annual cost (1993-2000) of implementing the activities under programme area A to be about $640 million from the international community on grant or concessional terms. These are indicative and order-of-magnitude estimates only and have not been reviewed by Governments. Actual costs and financial terms, including any that are non-concessional, will depend upon, inter alia, the specific strategies and programmes Governments decide upon for implementation.

9.33. The Conference secretariat has estimated the average total annual cost (1993-2000) of implementing the activities of the four-part programme under programme area B to be about $20 billion from the international community on grant or concessional terms. These are indicative and order-of-magnitude estimates only and have not been reviewed by Governments. Actual costs and financial terms, including any that are non-concessional, will depend upon, inter alia, the specific strategies and programmes Governments decide upon for implementation.

9.34. The Conference secretariat has estimated the average total annual cost (1993-2000) of implementing the activities under programme area C to be in the range of $160-590 million on grant or concessional terms. These are indicative and order-of-magnitude estimates only and have not been reviewed by Governments. Actual costs and financial terms, including any that are non-concessional, will depend upon, inter alia, the specific strategies and programmes Governments decide upon for implementation.

9.35. The Conference secretariat has included costing for technical assistance and pilot programmes under paragraphs 9.32 and 9.33.

Section IIIStrengthening the Role of Major GroupsChapter 23

Preamble

23.1. Critical to the effective implementation of the objectives, policies and mechanisms agreed to by Governments in all programme areas of Agenda 21 will be the commitment and genuine involvement of all social groups.

23.2. One of the fundamental prerequisites for the achievement of sustainable development is broad public participation in decision-making. Furthermore, in the more specific context of environment and development, the need for new forms of participation has emerged. This includes the need of individuals, groups and organizations to participate in environmental impact assessment procedures and to know about and participate in decisions, particularly those which potentially affect the communities in which they live and work. Individuals, groups and organizations should have access to information relevant to environment and development held by national authorities, including information on products and activities that have or are likely to have a significant impact on the environment, and information on environmental protection measures.

23.3. Any policies, definitions or rules affecting access to and participation by non-governmental organizations in the work of United Nations institutions or agencies associated with the implementation of Agenda 21 must apply equally to all major groups.

23.4. The programme areas set out below address the means for moving towards real social partnership in support of common efforts for sustainable development.

Section IVMeans of ImplementationChapter 33

Financial Resources & Mechanisms

INTRODUCTION


33.1. The General Assembly, in resolution 44/228 of 22 December 1989, inter alia, decided that the United Nations Conference on Environment and Development should:

  • Identify ways and means of providing new and additional financial resources, particularly to developing countries, for environmentally sound development programmes and projects in accordance with national development objectives, priorities and plans and to consider ways of effectively monitoring the provision of such new and additional financial resources, particularly to developing countries, so as to enable the international community to take further appropriate action on the basis of accurate and reliable data;
  • Identify ways and means of providing additional financial resources for measures directed towards solving major environmental problems of global concern and especially of supporting those countries, in particular developing countries, for which the implementation of such measures would entail a special or abnormal burden, owing, in particular, to their lack of financial resources, expertise or technical capacity;
  • Consider various funding mechanisms, including voluntary ones, and examine the possibility of a special international fund and other innovative approaches, with a view to ensuring, on a favourable basis, the most effective and expeditious transfer of environmentally sound technologies to developing countries;
  • Quantify the financial requirements for the successful implementation of Conference decisions and recommendations and identify possible sources, including innovative ones, of additional resources.

33.2. This chapter deals with the financing of the implementation of Agenda 21, which reflects a global consensus integrating environmental considerations into an accelerated development process. For each of the other chapters, the secretariat of the Conference has provided indicative estimates of the total costs of implementation for developing countries and the requirements for grant or other concessional financing needed from the international community. These reflect the need for a substantially increased effort, both by countries themselves and by the international community.

BASIS FOR ACTION

33.3. Economic growth, social development and poverty eradication are the first and overriding priorities in developing countries and are themselves essential to meeting national and global sustainability objectives. In the light of the global benefits to be realized by the implementation of Agenda 21 as a whole, the provision to developing countries of effective means, inter alia, financial resources and technology, without which it will be difficult for them to fully implement their commitments, will serve the common interests of developed and developing countries and of humankind in general, including future generations.

33.4. The cost of inaction could outweigh the financial costs of implementing Agenda 21. Inaction will narrow the choices of future generations.

33.5. For dealing with environmental issues, special efforts will be required. Global and local environmental issues are interrelated. The United Nations Framework Convention on Climate Change and the Convention on Biological Diversity address two of the most important global issues.

33.6. Economic conditions, both domestic and international, that encourage free trade and access to markets will help make economic growth and environmental protection mutually supportive for all countries, particularly for developing countries and countries undergoing the process of transition to a market economy (see chapter 2 for a fuller discussion of these issues).

33.7. International cooperation for sustainable development should also be strengthened in order to support and complement the efforts of developing countries, particularly the least developed countries.

33.8. All countries should assess how to translate Agenda 21 into national policies and programmes through a process that will integrate environment and development considerations. National and local priorities should be established by means that include public participation and community involvement, promoting equal opportunity for men and women.

33.9. For an evolving partnership among all countries of the world, including, in particular, between developed and developing countries, sustainable development strategies and enhanced and predictable levels of funding in support of longer term objectives are required. For that purpose, developing countries should articulate their own priority actions and needs for support and developed countries should commit themselves to addressing these priorities. In this respect, consultative groups and round tables and other nationally based mechanisms can play a facilitative role.

33.10. The implementation of the huge sustainable development programmes of Agenda 21 will require the provision to developing countries of substantial new and additional financial resources. Grant or concessional financing should be provided according to sound and equitable criteria and indicators. The progressive implementation of Agenda 21 should be matched by the provision of such necessary financial resources. The initial phase will be accelerated by substantial early commitments of concessional funding.

OBJECTIVES

33.11. The objectives are as follows:

(a) To establish measures concerning financial resources and mechanisms for the implementation of Agenda 21;(b) To provide new and additional financial resources that are both adequate and predictable;(c) To seek full use and continuing qualitative improvement of funding mechanisms to be utilized for the implementation of Agenda 21.

ACTIVITIES

33.12. Fundamentally, the activities of this chapter are related to the implementation of all the other chapters of Agenda 21.

MEANS OF IMPLEMENTATION

33.13. In general, the financing for the implementation of Agenda 21 will come from a country’s own public and private sectors. For developing countries, particularly the least developed countries, ODA is a main source of external funding, and substantial new and additional funding for sustainable development and implementation of Agenda 21 will be required. Developed countries reaffirm their commitments to reach the accepted United Nations target of 0.7 per cent of GNP for ODA and, to the extent that they have not yet achieved that target, agree to augment their aid programmes in order to reach that target as soon as possible and to ensure prompt and effective implementation of Agenda 21. Some countries have agreed to reach the target by the year 2000. It was decided that the Commission on Sustainable Development would regularly review and monitor progress towards this target. This review process should systematically combine the monitoring of the implementation of Agenda 21 with a review of the financial resources available. Those countries that have already reached the target are to be commended and encouraged to continue to contribute to the common effort to make available the substantial additional resources that have to be mobilized. Other developed countries, in line with their support for reform efforts in developing countries, agree to make their best efforts to increase their level of ODA. In this context, the importance of equitable burden-sharing among developed countries is recognized. Other countries, including those undergoing the process of transition to a market economy, may voluntarily augment the contributions of the developed countries.

33.14. Funding for Agenda 21 and other outcomes of the Conference should be provided in a way that maximizes the availability of new and additional resources and uses all available funding sources and mechanisms. These include, among others:

a) The multilateral development banks and funds:

  1. The International Development Association (IDA). Among the various issues and options that IDA deputies will examine in connection with the forthcoming tenth replenishment of IDA, the statement made by the President of the World Bank at the United Nations Conference on Environment and Development should be given special consideration in order to help the poorest countries meet their sustainable development objectives as contained in Agenda 21;
  2. Regional and subregional development banks. The regional and subregional development banks and funds should play an increased and more effective role in providing resources on concessional or other favourable terms needed to implement Agenda 21;
  3. The Global Environment Facility, managed jointly by the World Bank, UNDP and UNEP, whose additional grant and concessional funding is designed to achieve global environmental benefits, should cover the agreed incremental costs of relevant activities under Agenda 21, in particular for developing countries. Therefore, it should be restructured so as to, inter alia:
    • Encourage universal participation;
    • Have sufficient flexibility to expand its scope and coverage to relevant programme areas of Agenda 21, with global environmental benefits, as agreed;
    • Ensure a governance that is transparent and democratic in nature, including in terms of decision-making and operations, by guaranteeing a balanced and equitable representation of the interests of developing countries and giving due weight to the funding efforts of donor countries;
    • Ensure new and additional financial resources on grant and concessional terms, in particular to developing countries;
    • Ensure predictability in the flow of funds by contributions from developed countries, taking into account the importance of equitable burden-sharing;
    • Ensure access to and disbursement of the funds under mutually agreed criteria without introducing new forms of conditionality;

(b) The relevant specialized agencies, other United Nations bodies and other international organizations, which have designated roles to play in supporting national Governments in implementing Agenda 21;(c) Multilateral institutions for capacity-building and technical cooperation. Necessary financial resources should be provided to UNDP to use its network of field offices and its broad mandate and experience in the field of technical cooperation for facilitating capacity-building at the country level, making full use of the expertise of the specialized agencies and other United Nations bodies within their respective areas of competence, in particular UNEP and including the multilateral and regional development banks;(c) Bilateral assistance programmes. These programmes will need to be strengthened in order to promote sustainable development;(d) Debt relief. It is important to achieve durable solutions to the debt problems of low- and middle-income developing countries in order to provide them with the needed means for sustainable development. Measures to address the continuing debt problems of low- and middle-income countries should be kept under review. All creditors in the Paris Club should promptly implement the agreement of December 1991 to provide debt relief for the poorest heavily indebted countries pursuing structural adjustment; debt relief measures should be kept under review so as to address the continuing difficulties of those countries;(e) Private funding. Voluntary contributions through non-governmental channels, which have been running at about 10 per cent of ODA, might be increased.

33.15. Investment. Mobilization of higher levels of foreign direct investment and technology transfers should be encouraged through national policies that promote investment and through joint ventures and other modalities.

33.16. Innovative financing. New ways of generating new public and private financial resources should be explored, in particular:

(a) Various forms of debt relief, apart from official or Paris Club debt, including greater use of debt swaps;(b) The use of economic and fiscal incentives and mechanisms;(c) The feasibility of tradeable permits;(d) New schemes for fund-raising and voluntary contributions through private channels, including non-governmental organizations;(e) The reallocation of resources at present committed to military purposes.

33.17. A supportive international and domestic economic climate conducive to sustained economic growth and development is important, particularly for developing countries, in order to achieve sustainability.

33.18. The secretariat of the Conference has estimated the average annual costs (1993-2000) of implementing in developing countries the activities in Agenda 21 to be over $600 billion, including about $125 billion on grant or concessional terms from the international community. These are indicative and order-of-magnitude estimates only, and have not been reviewed by Governments. Actual costs will depend upon, inter alia, the specific strategies and programmes Governments decide upon for implementation.

33.19. Developed countries and others in a position to do so should make initial financial commitments to give effect to the decisions of the Conference. They should report on such plans and commitments to the United Nations General Assembly at its forty-seventh session, in 1992.

33.20. Developing countries should also begin to draw up national plans for sustainable development to give effect to the decisions of the Conference.

33.21. Review and monitoring of the financing of Agenda 21 is essential. Questions related to the effective follow-up of the Conference are discussed in chapter 38 (International institutional arrangements). It will be important to review on a regular basis the adequacy of funding and mechanisms, including efforts to reach agreed objectives of the present chapter, including targets where applicable.

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