Market-Based Opportunities in East Asia

Arthur J. HansonIISD

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‘Green’ Is In…

•Green Growth

•Green Economy

•Green Development

•GREEN MARKETS

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‘Sustainability’Markets Depend on…

•Regulation•Supply/Demand Factors•Incentives•Knowledge/Organization•Cost Internalization

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Regulation Should…•Provide FRAMEWORK promoting market-driven action beyond compliance

•Penalize UNSUSTAINABLE PRACTICES

•Open NEW ECONOMIC OPPORTUNITY

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Market Shifts - Supply•Scarcity•Substitution•Technology Advances•Acceptable/Good Practices•New Models

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Market Shifts - Demand•Wealth/Consumption Growth•Sophisticated Tastes (Travel, Food, Leisure)

•Safety, Health, Environment•Global & Regional “Watches”•New Factors (Low Carbon, Biodiversity, Working Conditions, etc.)

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Incentives…•Increased Access to Markets

•Eco-compensation•Price Premium/ Government Procurement

•Fiscal Policies/Subsidy & Tax Shifts/R&D Investment

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Knowledge…•Intervention Points in Market Supply Chains

•Understand Pricing Dynamics in Real Time

•Technology Options•Capacity Development

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Organization…•CSR – Corporate Social Responsibility

•CBD – Community-based Development

•Consumer Awareness•NGOs •Marketing & Self-regulating Bodies

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Cost Internalization…•‘Triple Bottom Line’•Address Market Inefficiencies – Scale, Vertical Integration, etc.

•Create New Products, Processes & Services

•Turn Environmental Problems into Opportunities

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Key Needs…

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•Business Case

•Enabling Framework

•Sustained Supply & Demand

•Financial Sector, Enterprises & Associations

•Government

•Suppliers & Consumers

EXAMPLES of Market-based Approaches

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Marine Aquarium Council

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CertificationPartnerships

The Conservation and Community Investment Forum that collaborates with MAC in South East Asia to design and finance conservation solutions.

Reef Check that has developed methods to assess and monitor the health of coral reefs and aquarium fish and coral stocks in collection areas

Terangi, the Indonesia Coral Reef Foundation demonstrates and prepares collectors and their communities for MAC certification

UNEP’s World Conservation Monitoring Centre along with the MAC has developed an international database to provide credible information on marine ornamental trade. - CopperWiki

Coral Reef Tourism & Recreation - Philippines •Sust. Fisheries USD 620 •Coastal Protection 326•Tourism & Recreation 108•Willingness to Pay 10

TOTAL – USD 1, 064 million

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http://siteresources.worldbank.org/INTPHILIPPINES/Resources/PEM05-ch1.pdf

Technology, Certification of Timor Leste Coffee

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“In 2009, about 67,000 households grew coffee in Timor-Leste…with improved technology for coffee farmers, gross margins could increase by an average of about $500/ha from only $120/ha.” - World Bank (2010)

Maritime Shipping•CKYH Green Alliance Partners – COSCO, K-Line, Yang Ming, Hanjin Shipping▫‘Eco-steaming’, Super-slow▫‘Cold ironing technology’▫‘Nano-emulsion Fuel System’▫Energy reduction in container ports

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- Bunkerworld May/June 2010 p24

Fish Health & Safety Certification• HACCP – USA

• Japan – Traceability & Direct Involvement of Retailers

• Europe – Shrimp Ban

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http://siteresources.worldbank.org/INTRANETTRADE/Resources/Topics/Standards/JapanCountrySurveyF.pdf

China Organic Food Certification•2002 China Green Food Development Center

•2005 National Standards & Certification, Uniform Logo

•Int’l Cooperation, NGOs

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http://www.wilsoncenter.org/topics/docs/going_organic_dec07.pdf

Oil Palm Certification

•Round Table Sust. Palm Oil (RSPO) WWF, Industry, Stakeholders

•Certification, trading, traceability•Indonesian Sustainable Palm Oil (ISPO Standard) Coming Soon

•NGO Campaigns against Food Companies has created change

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Low Carbon Economy, Green Growth & Dev.•South Korea, China,

Indonesia, etc.•Significance to Coral Triangle for possible carbon credits, eco-compensation

•Renewable Technologies Transfer of Experience

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Conclusions• No Shortage of Examples• Generally Slow Progress• Inconsistent Application• Failure to Develop ‘Full Package’

• Opportunities Never Greater

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Thank You!

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ajhanson@iisd.ca