Canada-Indonesia Trade and Private Sector Assistance Project (TPSA) - - PowerPoint PPT Presentation

This programme has been made possible through the generous support of the Caribbean Export Development Agency and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

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Canada-Indonesia

Trade and Private Sector Assistance Project (TPSA)

Presenter: Rita Lindayati, Senior Environment Specialist, TPSA Project Conference Board of Canada lindayati@conferenceboard.ca Wednesday, September 14th, 2016 at the Conference Board of Canada for the Study Visit of Indonesian Business Associations to Canada organized by TPSA Project

Environmental Sustainability

Overview

• Environmental Sustainability
• What ?
• Why bother?
• Environment and trade: challenges & opportunities
• What can TPSA do to promote environmental

sustainability?

• What can a business do?
• What can a business association do? (Sustainability

Workshop facilitated by Ms. Coro Stranberg)

What is Environmental Sustainability?

• Environmental sustainability: the

ability of plants, animals, micro-

• rganisms, and their non-living

surroundings (land, air, water) to sustain themselves, and people, now and in the future

(adapted from http://www.international.gc.ca/)

Without environmental sustainability it is impossible to achieve sustainable trade and economic development

Human dependency:

• Food and water supply
• Natural resources

(renewable and non- renewable) for industrial products

• Energy source
• Climate regulator
• A major source of

medicines

• A source for recreation
• Etc..

Why bother?

• Indonesia’s economic growth and rapid trade expansion have

come at a high environmental cost (e.g., depletion of natural resources; water and air pollution; deforestation and land degradation; greenhouse gas/carbon emissions).

• Natural capital constitutes 1/4 of Indonesia’s total wealth BUT

is being rapidly depleted with relatively little investment in human and productive capital.

• National savings rate declines by more than 90 percent (of

Gross National Income) once depreciation, depletion of natural resources and damage from air pollutants is accounted for.

The total cost of Indonesia’s environmental degradation, including climate change, is over 5 percent of GDP per year and likely to increase (World Bank, 2008) Environmental problems Economic cost (2007) Social cost Water pollution & inadequate water supply (mostly from household & industry) $7.6 billion

• r

2% of GDP Sanitation-related diseases (e.g., diarrhea), skin disease due to the use of polluted water, fish production, costs of flooding due to poor drainage, lost of tourism

• pportunity, etc..

Indoor & outdoor pollution (mostly from industry & transportation) $5.5 billion

• r

1.3% GDP Mortality & morbidity from cardio- pulmonary causes in adults, lung cancer, acute respiratory infections in children. Climate change Estimated to cost 2.5 – 7% of GDP by 2100

(Source: ADB, 2009)

More rainfall, flooding, reduced soil fertility, declining rice yields, damage to coastal areas (rising sea level, land subsidence, more frequent storms) Deforestation, coastal, marine, soil degradation Significant economic losses, but insufficient data Loss of livelihoods, way of life

Environmental challenges: coffee

Input Process Outputs/ Potential Environmental Impact

P c r

• u

d n u t c r i y n g

Land Water Agrochemicals Land clearance Cultivation Deforestation Depleted soil quality Reduced bio-diversity CO2/GHG emissions Energy Water Picking and Processing CO2/ GHG emissions Water & solid waste from pulping Energy Drying CO2/ GHG emissions Energy Transportation CO2/GHG emissions

C

• c

n o s u u n m t i r n y g

Energy Raw materials Roasting and Packaging CO2/ GHG emissions Energy Water Consumption CO2/GHG emissions End of life Landfill Compost

Environmental challenges: apparel

Input Process Output/Potential Environmental Hotspots

P r

• c

d o u u c n i t n r g y

Land Agrochemicals Water Production (cotton) Land clearance Cultivation

• Deforestation & loss of biodiversity
• Water pollution & scarcity
• Soil degradation
• CO2/GHG emissions

Water Chemicals Energy Industrial phase Processing Manufacturing Packaging

• Water pollution & scarcity
• CO2/GHG emissions/global warming
• Ozone depletion

Energy Transportation Distribution

• CO2 /GHG emissions/global warming

C

• n c

s o u u m n i t n r g y

Water Chemicals Energy Consumer phase Washing Ironing

• Water pollution & scarcity
• CO2/GHG emissions/global warming

Energy End-of-life phase Landfill Incineration Recycling Reuse

• Water pollution & scarcity
• CO2/GHG emissions/global warming

Environmental challenges: footwear

Input Process Outputs

P c r

• u

d n u t c r i y n g

Land Agrochemical s Water Energy Production of raw materials

• Cultivation (plant &

animals)

• Mineral extraction
• Deforestation & loss of

biodiversity

• Water pollution & scarcity
• Soil degradation
• CO2

Water Chemicals Energy Industrial phase Processing Manufacturing Packaging

• Water pollution & scarcity
• CO2/GHG emissions
• Ozone depletion

Energy Transportation Distribution

• CO2 /GHG emissions

C

• n

c s o u u m n i t n r g y

Consumer phase Energy End-of-life phase Landfill Incineration Recycling, Reuse

• Water pollution & scarcity
• CO2/GHG emissions/Global

warming

A typical pair of running shoes generates 30 pounds of carbon dioxide emissions, equivalent to keeping a 100-watt light bulb on for one week (MIT, 2013)

Opportunities: towards Green Economy

Green Economy: a system of economic activities related to the production, distribution and consumption of goods and services that result in improved human wellbeing over the long term, while not exposing future generations to significant environmental risks and ecological scarcities (UNEP, 2011). Example:

• Increase in green investment
• Increase in jobs in green sectors
• Decrease in energy and resource

use per unit of production

• Decrease in waste and pollution
• Decrease in unsustainable

consumption

What can TPSA do to promote environmental sustainability?

• Mainstreamed environmental considerations into project objectives and activities.
• Developed Environmental Management Plan to reinforce positive environmental
• pportunities and prevent potential negative ones resulting from TPSA project

activities.

• Key interventions of Environmental Management Plan:
• rapid environmental analysis and identification of environmental hotspots for

target industries,

• provision of technical assistance to target SMEs to improve their environmental

performance,

• increased government and non-government stakeholder understanding,

awareness, and analytical skills on the interdependency between trade and environmental and natural resource sustainability,

• provide information to Indonesian SMEs on Canada’s environmental requirements

and standards, Canadian consumers’ environmental preferences, and green certification opportunities,

• provide analysis on environmental value chains of target industries and identify

environmental gaps in the value chains.

What can a business do?

Green initiatives in coffee, apparel, and footwear industries

Green Initiative Coffee Apparel Footwear

Production of raw materials

• Organic coffee
• Shade grown coffee
• Good agricultural

practices

• Organic cotton
• Bamboo
• Hemp
• Eco-leather (artificial)
• Recycled plastics
• Recycled rubber

Processing/ Manufacturing

• Energy efficient

machineries

• Efficient water use
• Eco-friendly design
• Energy efficient

machineries

• More efficient use of

water

• Natural dye
• Eco-friendly design
• Energy efficient

machineries

• Non toxic glue

Transportation

• Renewable energy
• Renewable energy
• Renewable energy

Consumption

• Glass
• Efficient water use
• Energy efficient

coffee makers

• Less washing
• Energy efficient washing

machines

• Eco-friendly detergents

End of life

• Compost
• Recycle
• Reuse
• Recovery
• Recycle
• Reuse
• Recovery

What can a business association do?

UN Global Compact:

• Mainstream environmental sustainability in the association’s vision, goals,

and targets.

• Offer its members sector-specific advice and guidance on key

sustainability issues, by developing tools and promoting best practices.

• Develop technical standards on corporate sustainability performance.
• Engage with consumers and the public at large to raise awareness of the

sector’s contribution to society and environmental sustainability. Note: This topic will be discussed further at the workshop “Introduction to CSR and the role of the association” Friday, September 16, 2016 (facilitator: Ms. Coro Strandberg).

TERIMA KASIH