This programme has been made possible through the generous support of the Caribbean Export Development Agency and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). Canada-Indonesia Trade and Private Sector Assistance Project (TPSA) \\\\\\\\\\\\\\\\\\ Environmental Sustainability Presenter: Rita Lindayati, Senior Environment Specialist, TPSA Project Conference Board of Canada lindayati@conferenceboard.ca Wednesday, September 14 th , 2016 at the Conference Board of Canada for the Study Visit of Indonesian Business Associations to Canada organized by TPSA Project
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- organisms, 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 Economic cost (2007) Social cost problems Water pollution & $7.6 billion Sanitation-related inadequate water or diseases (e.g., diarrhea), skin disease supply 2% of GDP due to the use of polluted water, fish (mostly from production, costs of flooding due to household & poor drainage, lost of tourism industry) opportunity, etc.. Indoor & outdoor $5.5 billion Mortality & morbidity from cardio- pollution or pulmonary causes in adults, lung cancer, (mostly from 1.3% GDP acute respiratory infections in children. industry & transportation) Climate change Estimated to cost 2.5 – More rainfall, flooding, reduced soil 7% of GDP by 2100 fertility, declining rice yields, damage to (Source: ADB, 2009) coastal areas (rising sea level, land subsidence, more frequent storms) Deforestation, Significant economic Loss of livelihoods, way of life coastal, marine, soil losses, but insufficient degradation data
Environmental challenges: coffee Input Process Outputs/ Potential Environmental Impact P c Land Land clearance Deforestation r o Water Cultivation Depleted soil quality o u d n Agrochemicals Reduced bio-diversity u t c r CO2/GHG emissions i y n Energy Picking and CO2/ GHG emissions g Water Processing Water & solid waste from pulping Energy Drying CO2/ GHG emissions Energy Transportation CO2/GHG emissions C o c Energy Roasting and CO2/ GHG emissions n o s u Raw materials Packaging u n m t Energy Consumption CO2/GHG emissions i r n y Water g End of life Landfill Compost
Environmental challenges: apparel Input Process Output/Potential Environmental Hotspots • Deforestation & loss of biodiversity P Land Production r • Water pollution & scarcity Agrochemicals (cotton) o c • Soil degradation Water Land clearance d o • CO2/GHG emissions u u Cultivation c n • Water pollution & scarcity Water Industrial phase i t n r • CO2/GHG emissions/global warming Chemicals Processing g y • Ozone depletion Energy Manufacturing Packaging • CO2 /GHG emissions/global warming Energy Transportation Distribution • Water pollution & scarcity C Water Consumer phase o • CO2/GHG emissions/global warming Chemicals Washing n c Energy Ironing s o u u • Water pollution & scarcity Energy End-of-life phase m n • CO2/GHG emissions/global warming Landfill i t n r Incineration g y Recycling Reuse
Environmental challenges: footwear Input Process Outputs • Deforestation & loss of P c Land Production of raw materials r o • Cultivation (plant & Agrochemical biodiversity o u d n • Water pollution & scarcity s animals) u t • Mineral extraction • Soil degradation c r Water i y • CO2 Energy n g • Water pollution & scarcity Water Industrial phase • CO2/GHG emissions Chemicals Processing • Ozone depletion Energy Manufacturing Packaging • CO2 /GHG emissions Energy Transportation Distribution C o Consumer phase n c s o u u • Water pollution & scarcity Energy End-of-life phase m n • CO2/GHG emissions/Global i t Landfill n r Incineration warming g y Recycling, Reuse
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 opportunities 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 • Organic coffee • Organic cotton • Eco-leather (artificial) Production of raw • Shade grown coffee • Bamboo • Recycled plastics materials • Good agricultural • Hemp • Recycled rubber practices • Energy efficient • Eco-friendly design • Eco-friendly design Processing/ • Energy efficient • Energy efficient Manufacturing machineries • Efficient water use machineries machineries • More efficient use of • Non toxic glue water • Natural dye • Renewable energy • Renewable energy • Renewable energy Transportation • Glass • Less washing Consumption • Efficient water use • Energy efficient washing • Energy efficient machines • Eco-friendly detergents coffee makers • Compost • Recycle • Recycle End of life • Reuse • Reuse • Recovery • 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
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