SUSTAINABLE DEVELOPMENT OF THE REPUBLIC OF BELARUS … · On the threshold of the UN Sustainable Development Conference "Rio+20", which is to assess the achievements of humanity in

SUSTAINABLE DEVELOPMENT

OF THE REPUBLIC OF BELARUS

BASED ON “GREEN” ECONOMY

PRINCIPLES

National Report

SUSTAINABLE DEVELOPMENTOF THE REPUBLIC OF BELARUSBASED ON “GREEN” ECONOMY

PRINCIPLES

NATIONAL REPORT

Ìinsk

Scientific-Research Economic Institute of the Ministry of Economy of Belarus

2012

SUSTAINABLE DEVELOPMENT OF THE REPUBLIC OF BELARUS BASED ON “GREEN” ECONOMY PRINCIPLES

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The National Report elaborates on the Belarusian sustainable socio-economic development model, demonstratesachievements in sustainable development in general and in specific sectors of the economy in particular, andidentifies the directions and principles of the transition of Belarus to a “green” economy.

The draft National Report was reviewed at a roundtable held by the Ministry of Natural Resources andEnvironmental Protection of Belarus on May 18, 2012 in Minsk, attended by a wide range of representatives fromstate agencies, academic institutions, non-governmental organizations and UN agencies; it was also delivered atthe scientific-practical conference “Sustainable Development of the Republic of Belarus Based on “Green”Economy Principles” on June 5, 2012.

© SREI of MoE of Belarus, 2012

UDK [316.42+330.59](476)(047.3)

ISBN 978-985-6762-64-5

This National Report was drawn up by the staff of the Scientific-Research Economic Instituteof the Ministry of Economy of Belarus with financial and organizational assistance

from the United Nations Development Program Office in Belarus.


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Opening Remarks by the Ministerof Economy of the Republic of Belarus

The Republic of Belarus takes an active part in building a prosperous, safe and sustainablefuture for all mankind. The economic policy of our country is developed solely with regard toenvironmental safety. Environmental requirements, declared today as the principles of “green”economy, are rigorously embedded into all development programs – they are the determinants of the“technological corridor” of innovative breakthrough and industrial modernization in Belarus. TheGovernment of Belarus – a country that suffered from the Chernobyl accident – understands betterthan anybody that building “economy” provides a unique chance to secure long-term prosperousdevelopment in the interests not only of the present-day generation, but also those to come.

Belarus has chosen the so-called “win-win” scenario that is associated with ensuring bothsocially oriented economic growth and reducing harmful emissions, prudent environment managementand development of low-waste production. That is why our national sustainable development strategyrests upon unbiased analysis of the economic situation and accounts for people’s wish for betterliving. Our country is ready to support “green” ideas, it strives to utilize the best international experienceand innovation and to attract “green” technology.

I am confident that this National Report lays that foundation for a new sustainable developmentstrategy.

N.G. Snopkov


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In the modern world, sustainable development is inconceivable without the environmentalcomponent, and the issues of "greening" economic growth are in the focus of the internationalcommunity.

In the Republic of Belarus, the issues of sustainable development and the introduction ofenvironmental principles into the national economy, creating conditions for better living of the populationand ensuring social justice, while significantly reducing environmental risks are among the prioritiesof state policy.

All the preconditions for the implementation of sustainable development principles have beencreated and the concept of environmental "green" economy is deemed to be an important instrumentfor ensuring environmental safety.

At the same time, the state supports approaches that contain no grounds to using the "green"economy concept as an instrument of discrimination and protectionism and that contribute to betteravailability of environmental "green" technology for developing and transitional economies, to renderingfinancial, technical, advisory and other assistance for their development and introduction.

Meanwhile, environmental well-being as a foundation for the successful future of mankindand the life of the entire population of our planet can only result from constructive cooperation betweenall stakeholders at the local, regional and global levels.

On the threshold of the UN Sustainable Development Conference "Rio+20", which is to assessthe achievements of humanity in sustainable development and set future objectives, it should bestressed that our country has always been open to multi-dimensional partnership for the sake ofsustainable global development.

The National Report "Sustainable Development of the Republic of Belarus Based on thePrinciples of "Green" Economy" serves to highlight the substantial progress that our country hasmade in sustainable development and to inform the global community on the measures taken inBelarus towards sustainable development, towards a formation of a new model based on the principlesof "green" economy.

V. Tsalko

Opening Remarks by the Minister of NaturalResources and Environmental Protectionofthe Republic of Belarus


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TABLE OF CONTENTS

Opening Remarks by the Minister of Economy of the Republic of Belarus .............................................. 3

Opening Remarks by the Minister of Natural Resources and Environmental Protectionof the Republic of Belarus .............................................................................................................................. 4

List of acronyms .............................................................................................................................................. 7

Foreword .......................................................................................................................................................... 8

Section 1. The Belarusian Sustainable Development Model ....................................................................... 9

Section 2. Fulfillment of International Sustainable Development Commitments ................................... 12

Section 3. Achievements in Sustainable Development .............................................................................. 15

3.1. Social Progress ................................................................................................................................. 15

3.2. Economic Development ................................................................................................................... 18

3.3. Environment and Nature Management ............................................................................................ 213.3.1. Protection of the Atmosphere .................................................................................................................... 22 3.3.1.1. Greenhouse Gases ............................................................................................................................ 233.3.2. Industrial and Consumer Waste ................................................................................................................. 233.3.3. Water and Potable Water Supply ............................................................................................................... 243.3.4. Preservation of Natural Ecosystems, Biological and Landscape Diversity ............................................... 253.3.5. Mineral Deposits ....................................................................................................................................... 27

Section 4. Progress in the Development of a Green Economy ................................................................... 28

4.1. Energy and Fuel Resources .............................................................................................................. 28

4.2. Industry ............................................................................................................................................ 30

4.3. Transport .......................................................................................................................................... 32

4.4. Construction, Housing and Utilities ................................................................................................ 35

4.5. Agriculture ....................................................................................................................................... 37

4.6. Forestry ............................................................................................................................................ 40

Section 5. Directions and Principles of Transition to a "Green" Economy ............................................. 43

5.1. Economic Policy and Instruments. The Role of the State in the Transition to a "Green" Economy ...... 43

5.2. Education for "Green" Economy ..................................................................................................... 46

5.3. Science and Innovation for Sustainable Development .................................................................... 48

The Position of the Republic of Belarus in Regard to "Green" Economy ............................................... 50


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Prepared by

Science Editor:

Victor Pinigin

Experts:Yakub Alexandrovich (“The Belarusian Sustainable Development Model”)

Anatoly Bogdanovich (“Fulfillment of International Sustainable Development Commitments”)

Ludmila Borovik (“Social Progress”)

Olga Semashko (“Economic Development”)

Irina Griboedova (“Economic Development”)

Vera Zubacheva (“Environment and Nature Management”, “Economic Policy and Instruments,The Role of the State in Transition to “Green” Economy”)

Dmitry Chizsh (“Environment and Nature Management”)

Dmitry Khamchukov (“Industry”)

Alan Tabolov (“Energy and Fuel Resources”)

Ludgara Tulupova (“Construction, Housing and Utilities”)

Nadezhda Radchenko (“Agriculture”)

Yury Septilko (“Transport”)

Evegenya Selitskaya (“Forestry”)

Ivan Udovenko (“Education for “Green” Economy”)

Vyacheslav Ivanov (“Science and Innovation for Sustainable Development”)

Acknowledgements

The authors would like to thank A.N. Rachevsky, I.V. Komosko, G.I. Mikhalap, M.V. Philipyuk,N.V. Minchenko, I.I. Belchik, E.I. Polyakova and other representatives of the Ministry of Natural Resources andEnvironmental Protection, Ministry of Economy, Ministry of Foreign Affairs of the Republic of Belarus, as wellas non-governmental organizations for valuable advice and information provided in the process of preparingthe National Report.


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List of acronyms

GDP ..................... Gross Domestic ProductGVA ...................... Gross Value AddedGEF ...................... Global Environment FacilitySEE ...................... State Environmental AssessmentECE ...................... Economic Commission for EuropeCES ...................... Common Economic SpaceUNCCD ................ United Nations Convention to Combat DesertificationILO ....................... International Labor OrganizationNSSD ................... National Strategy for Sustainable DevelopmentEIA........................ Environmental Impact AssessmentUN ........................ United NationsPA ......................... Protected AreasLE ......................... Life Expectancy at birthPPP ...................... Purchasing Power ParityUNDP ................... United Nations Development ProgramUNFCCC .............. United Nations Framework Convention on Climate ChangeCIS ....................... Commonwealth of Independent StatesSEA ...................... Strategic Environmental AssessmentSMW .................... Solid Municipal WasteMDG ..................... Millennium Development Goals set forth in the UN Millennium DeclarationUNEP ................... United Nations Environment ProgramFSC ...................... Forest Stewardship CouncilIRENA .................. International Renewable Energy AgencyPEFC.................... Pan European Forest Certification Council


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FOREWORD

In 1987 the World Commission on Environment andDevelopment (Brundtland Commission) published areport "Our common future", which convincinglytestified to the close relationship betweenenvironmental, social and economic problems andthe impossibility of their individual resolution. It wasthe first document to define the essence ofsustainable development as a process based onsatisfying the vital needs of the present generationswithout compromising those of the future generations.

However, the report presented compelling evidenceof the intensifying human impact on the environmentin the course of the implementation of the sustainabledevelopment model. This process resulted in:imbalance in the natural circulation of substances anddamage to biodiversity, destruction of localecosystems, excessive consumption and wastefuluse of natural resources, high levels of pollution byharmful emissions and waste, climate change, anddegradation of individual territories. This threatens thefurther development of human civilization.

Awareness of this potential environmental disasterprompted UN experts to develop a strategic actionplan, "Agenda 21", which was adopted at the UNInternational Conference on Environment andDevelopment in Rio de Janeiro (1992). It formulatedthe key tasks for mankind in order to ensure transitionto sustainable development, further elaborated in the"Millennium Declaration" (2000) and theJohannesburg Declaration on SustainableDevelopment, adopted at the Summit (2002).Subsequent programs of the UN EnvironmentProgram (UNEP) and global environmental safetyimprovement programs (2011) and other program

documents further developed these approaches onthe basis of the principles of "green" economy.

The concept of "green economy" is regarded as amodel aimed at economic growth and socialdevelopment through the use of predominantlyintensive factors, but without exercising excessivepressure on natural resources or increasing the levelof pollution. This concept envisages transformationof the market and the institutional mechanisms of thecurrent model into effective instruments for achievingsustainable development.

Now, 20 years after the adoption of "Agenda 21",Belarus, like many other countries, is assessing theinterim results of the transition process, evaluatingboth the successes and especially the shortcomingsin solving the problems of sustainable development.

Today we can say that Belarus is moving steadily,step by step, towards the creation of conditions forsustainable development. Especially high indicatorswere achieved in the social sector, povertyeradication, reducing child mortality, ensuringeducation of the population, and social equality. Thisis the result of consistent formation of effective socio-economic institutions and the innovative developmentof the country.

This National Report aims to assess the progress ofBelarus in moving towards sustainable development:to identify the degree of integration of the ideas ofsustainable development in the policies andframework documents of the country, to determinethe responses to the challenges in this area. Animportant objective of the Report is to assesscompliance of the development of key sectors withthe principles of "green" economy.

THE BELARUSIAN SUSTAINABLE DEVELOPMENT MODEL

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THE BELARUSIAN SUSTAINABLEDEVELOPMENT MODEL

SECTION 1SECTION 1SECTION 1SECTION 1SECTION 1

Belarus aims to create institutional and organizationalpreconditions for the transition to sustainabledevelopment. The major goals include:

development and adoption of long-term andmedium-term program and forecastingdocuments, focused on the sustainable socio-economic development of Belarus in variousspheres;

continuous improvement of national legislationto bring it into conformity with the principles ofsustainable development;

development of civil society, and above all,environmental non-governmental organi-zations;

possibilities for integrated solutions in the fieldof public economics, ecology and socialdevelopment;

research and innovation infrastructure relevantto sustainable development goals;

developed environmental monitoring andecological statistics systems.

In 2004, Belarus developed a National Strategy forSustainable Socio-economic Development in theRepublic of Belarus up to 2020, in accordance withthe principles of "Agenda 21" and other UNdocuments, taking into account the country-specificnatural resources, production, and economic andsocial potential. At the strategy's core is theBelarusian model of sustainable development, withprime elements being the spiritual, social, economicand environmental components seen as equal and

harmoniously inter-related spheres of humanactivity.

The model is a way of organizing and functioningsociety, the state, and the national economy throughthe development of a national identity based on theprinciples of sustainable balanced development of allthe elements, ensuring prevention and mitigation ofexternal and internal threats in the interests ofpresent-day and future generations. It is based onthe scientific paradigm of evolution in anenvironmentally compatible form, and includes a setof principles and requirements for the developmentof the national economy, for its smooth functioningand interaction of its subsystems. The Belarusianmodel of sustainable development is based on arational combination of spiritual and material values,on development of various forms of ownership, onadequate institutional and market infrastructure witheffective mechanisms of state and market regulationand an effective social protection system.


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The main characteristics of the Belarusian model are:

strong effective state authority ensuring politicalstability, security, social justice and public order;

equality of different forms of ownership,preconditioned by the main criterion -increasing the efficiency of the economy;

raising spiritually and culturally developedgenerations of citizens who cherish their land,its historic past and present;

strong social policy based on high socialstandards;

multi-vector foreign policy as a key principle ofsustainable development;

development of integration processes with CIScountries, primarily Russia, Kazakhstan, andother countries.

To ensure the sustainable development of the country,the Belarusian model provides for coherent,integrated development of all its elements based onobserving the following criteria:

maximizing social and economic efficiencywhile preventing the deterioration of theenvironment;

rationally managing the consumption of goodsand services in accordance with scientificallygrounded standards;

compliance with the restrictions on resourcesof all kinds, especially non-renewableresources;

maximal preservation of ecosystems in theprocess of environmental management basedon balanced circulation of substances.

In order to achieve these sustainable developmentgoals, the National Strategy (NSSD-2020) identifiedthe following development areas for key componentsof the Belarusian model.

Economy:

facilitating the institutional transformationsneeded to meet the requirements of "green"economy;

modernization of fiscal policy and pricing forthe sake of environmental management andenvironmental protection;

changes in procurement policies to promoteclean production and use of resource-efficientclean production technologies;

development of fundamental and appliedresearch in priority areas of the "green"economy;

restructuring of the economy andmodernization of production through theintroduction of resource-saving, energy-efficient clean technologies of the 5th and 6thwaves of technological innovation;

state support for innovation and investmentprojects based on environmental impactassessment;

increased public investment in environmentallyfriendly production and innovationinfrastructure (energy, renewable energy,energy-efficient buildings, restoring andincreasing natural and human capital);

creation of "green" jobs, especially in energy,transportation, basic industries, wastemanagement;

targeted government support for research anddevelopment related to the creation of cleantechnologies;

strengthening foreign economic policy andinternational cooperation, development ofintegration processes with CIS countries, theEU, etc.;

broad use of regional and local initiatives,primarily those aimed at environmentalmanagement and preservation of theenvironment;

ensuring economic security.

Social sphere:

raising the quality and improving the structureof consumption of goods and services;

raising real wages, pensions and allowancesin line with growth in labor efficiency;

THE BELARUSIAN SUSTAINABLE DEVELOPMENT MODEL

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closing the income gap, reducing poverty;

human development - improving thedemographic situation, creating a system fortraining physically healthy and spiritually matureindividuals (education, health, culture, sport,tourism, etc.);

creating a vibrant civil society, improvinggovernance and the system of democraticinstitutions, strengthening the role of non-governmental organizations, trade unions andother associations;

ensuring social and demographic security.

Environment:

improving the system of regulation andeconomic incentives in environmentalmanagement and protection;

adoption of legislative, regulatory and legal actson environmental management, water use andenvironmental protection, their harmonizationwith European standards;

introduction of resource-saving techniques andtechnologies, environmentally soundproduction;

enhancing the environmental capacity of forest,land and water resources;

reducing emissions of pollutants;

rationalization of the generation, treatment anddisposal of industrial and consumer waste;

minimizing the anthropogenic impact on theenvironment;

development of modern biotechnology andgenetic engineering;

modernization of environmental monitoring andawareness raising;

enhancing coverage of environmentaleducation and training systems;

ensuring environmental security.

For each of these areas Belarus has designed lawsand regulations which are currently being observedby the corresponding economic entities; state,targeted, scientific and technical, socio-economic,environmental, educational, industrial and regionalprograms have been developed and are beingimplemented.

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FULFILLMENT OF INTERNATIONALSUSTAINABLE DEVELOPMENTÑOMMITMENTS


The Republic of Belarus is a party to 13 global and 9European and international environmentalconventions and protocols. Over the last decade,more than 40 international treaties - bilateral andmultilateral - have been concluded in the field ofenvironmental protection. For the sake of theirimplementation, national policies and programs arebeing developed, environmental legislation is beingpassed, the National Environment Monitoring Systemhas been enacted, and relevant national reports andimplementation reports are being compiled.

The Law of the Republic of Belarus "OnEnvironmental Protection", which was substantiallyreviewed in 2002 and given a new edition, reflectsthe state's position on international cooperation in thefield of environmental protection. Article 104 specifiesthat such cooperation shall be carried out inaccordance with the generally recognized principlesand norms of international law and the internationaltreaties to which the Republic of Belarus is party.Article 105 of the Law stipulates the priority ofapplication of environmental protection provisions, asenshrined in international treaties.

In 2010, the Center for International EnvironmentalConventions and Treaties was opened on the basisof the Belarusian Research Center "Ecology". TheCenter aims to address the issues associated withmanaging conventions, monitor their implementation,provide relevant reports to the Government andinternational organizations.

The Republic of Belarus is party to severalinternational treaties on biological and landscape

diversity, including conventions on Biological Diversityon the Conservation of Migratory Species of WildAnimals, on International Trade in EndangeredSpecies of Wild Fauna and Flora,and on Wetlandsof International Importance Especially as WaterfowlHabitat.

In order to fulfill the commitments made in connectionwith participation in these conventions, the Republicof Belarus has adopted a range of policy documentssetting forth the strategic directions for biologicaldiversity in the country - the National Strategy forDevelopment and Management System of NaturalProtected Areas until January 1, 2015, the Strategyfor Implementation of the Ramsar Convention, as wellas the Strategy for the Preservation and SustainableUse of Biological Diversity for 2011–2020.

Issues of adapting to climate change are key elementsof the state climate policy. As a party to the UNFramework Convention on Climate Change(UNFCCC) and the Kyoto Protocol to the UNFCCC,

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FULFILLMENT OF INTERNATIONAL SUSTAINABLE DEVELOPMENT COMMITMENTS

the Republic of Belarus is making a significantcontribution to stabilizing concentrations ofgreenhouse gases in the atmosphere at a level thatprevents dangerous anthropogenic interference withthe climate system.

The State Commission on Climate Change (approvedby the Resolution of the Council of Ministers of theRepublic of Belarus on September 5, 2006 ¹1145)ensures the coordination of the enforcement ofobligations arising from the UNFCCC and the KyotoProtocol by national governmental bodies and otherstate agencies subordinate to the Government of theRepublic of Belarus, regional executive committees,Minsk city executive committee and otherorganizations.

Belarus has developed, approved and is currentlyimplementing:

a strategy to reduce emissions and increaseabsorption of greenhouse gases in theRepublic of Belarus for 2007–2012, approvedby the Resolution of the Council of Ministersof the Republic of Belarus of 07.09.2006,¹ 1155;

a national program of measures to mitigateclimate change for the period 2008–2012,approved by the Resolution of the Council ofMinisters of 04.08.2008, ¹1117.

The state has also adopted the Decree of thePresident of the Republic of Belarus 08.12.2010, #625 "On Some Issues of Reducing Greenhouse GasEmissions", and other regulations.

In order to determine the specific quantitativecommitments of the Republic of Belarus to reduceemissions of greenhouse gases by 2020, an updatedforecast of greenhouse gas emissions was developedin 2011 on the basis of the adopted national, sectoraland regional economic development programs.

This forecast was the basis for approving thecommitment of Belarus to limit emissions ofgreenhouse gases after 2012, during the secondperiod of the Kyoto Protocol to the UN FrameworkConvention on Climate Change; the target for

reducing greenhouse gas emissions in 2020 was setat 8% as compared to 1990 levels.

Belarus is a full party to the UN Convention to CombatDesertification / Land Degradation (hereinafter - theUNCCD). In accordance with Annex V to theConvention Belarus is an affected party to theConvention.

In January 2011 the country adopted its Strategy forUNCCD Implementation for 2011–2020 and the ActionPlan to Implement the Strategy for 2011–2015.

Within the framework of the commitments made bythe Republic of Belarus under the Basel Conventionon the Control of Transboundary Movements ofHazardous Wastes and Their Disposal, thetransboundary movement of hazardous wastes isregulated, and in that process the Ministry of NaturalResources and Environmental Protection of Belarusissues permits (licenses) to import and (or) exportwaste. In accordance with the law, the import of wasteinto the Republic of Belarus is only allowed for thepurpose of further use as secondary raw materials inthe country.

For the purposes of implementing the StockholmConvention on Persistent Organic Pollutants, thecountry adopted the Decree of the President of theRepublic of Belarus ¹ 271 "On Approval of theNational Plan of Fulfillment of Commitments Madeby the Republic of Belarus to Implement theStockholm Convention on Persistent Organic

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Pollutants for 2011–2015" on June 27, 2011, and thisplan is currently being implemented.

The country has been working on creating a singledatabase on Persistent Organic Pollutants, as wellas on eliminating expired pesticide burial sites. Thestate has organized systematic monitoring of POPcontent in water and sediments at cross-bordersections of 35 rivers of the Republic of Belarus.

The Republic of Belarus has been actively workingto solve the problems of air quality management in atransboundary context, notably through its fulfillmentof commitments under the UNECE Convention onLong-range Transboundary Air Pollution, the Protocolto the Convention on Long-range Transboundary AirPollution of 1979, the long-term financing of the Co-operative program for monitoring and evaluating thelong range transmission of air pollutants in Europe(EMEP); the Protocol on the Reduction of SulfurEmissions or their Transboundary Fluxes by at least30%; of the Protocol on the Control of Emissions ofNitrogen Oxides or their Transboundary fluxes.

Belarus is also party to regional conventions such as:

The UNECE Convention on Access to Information,Public Participation in Decision-Making and Accessto Justice in Environmental Matters (AarhusConvention);

The UNECE Convention on Environmental ImpactAssessment in a Transboundary Context (EspooConvention);

The UNECE Convention on the Protection and Useof Transboundary Watercourses and InternationalLakes (Helsinki Convention), as well as the Protocolon Water and Health to the above Convention;

The UNECE Convention on the TransboundaryEffects of Industrial Accidents.

The main directions of international cooperation inthe area of the country's economic and socialdevelopment are defined in the National Strategy for

Sustainable Socio-economic Development of Belarusup to 2020, approved by the National Commissionon Sustainable Development and the Presidium ofthe Council of Ministers, and the Program for theSocio-economic Development of Belarus for 2011–2015, approved by Presidential Decree ¹ 136 of April11, 2011.

The most important avenue of the foreign policy ofthe Republic of Belarus is participation in general andspecialized global and regional internationalorganizations and integration groups. In recent years,Belarus has been actively developing its cooperationwith partners within integration associations andorganizations in the territory of the former Soviet Union- the CIS and EurAsEC.

The Customs Union of Belarus, Kazakhstan and theRussian Federation came into effect on January 1,2010 , serving as the basis for transition to a deeperform of integration from 1 January 2012 – theCommon Economic Space (CES). 17 basicagreements have been signed for the purpose of thelegal framework of this new formation.

In October 2010, the first ever UN DevelopmentAssistance Framework Program for the Republic ofBelarus for the period 2011–2015 was signed. Thisinstrument for strategic planning of the interaction ofthe Government of Belarus with all of the specializedUN agencies, funds and programs working in Belarusstipulates raising external resources totaling US$490million.

The Republic of Belarus is carrying out systematicwork in order to achieve the development goals setforth in the UN Millennium Declaration, adopted inSeptember 2000 at the New York Summit. TheRepublic of Belarus has already reached almost allof the Millennium Development Goals (MDGs).Detailed information on this is presented in the 2010Second National Report on the Achievement of theMillennium Development Goals. The integration ofeach goal in the state policy of Belarus has beenanalyzed. Literally all of the national goals andobjectives of the Millennium Development Goals havebeen included in a range of government policies andprograms.

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ACHIEVEMENTS IN SUSTAINABLE DEVELOPMENT


ACHIEVEMENTS IN SUSTAINABLEDEVELOPMENT

3.1. Social Progress

Modern reality has preconditioned the priority of thespiritual and social components of socialdevelopment, associated with targeted policies toraise the spiritual culture and improve the well-beingof the population, and most importantly with increasingthe importance of human factors in economic growth.Belarus has formed its own model of social policy,with the following priority directions: increasing thereal level of all types of monetary income of thepopulation and provision of effective support tovulnerable categories of citizens, ensuring effectiveemployment and retention of unemployment withinsocially tolerable limits, maintaining consistentincrease in life expectancy and fertility rates, ensuringimproved health and reduced mortality. Also amongthe priorities are qualitative transformation ofeducational systems, religious education, healthcare,development of the social sphere towards enhancingthe availability and quality of social services.

The Republic of Belarus has adopted a number oflegislative acts in the field of social policy, aimed atimproving relations in the sphere of labor, pensionsand social protection of poor families with children,the disabled and the elderly. Further legislativedevelopment has been undertaken in the areas ofhousing, healthcare, education and culture, socialsecurity.

The underlying instruments of the state's social policyare: the Labor Code, the Code on Marriage and Family,

the laws "On the Living Wage in the Republic ofBelarus", "On Employment in the Republic of Belarus","On the Rights of the Child," "On Social Protection ofDisabled Persons"; "On Social Protection of CitizensAffected by the Chernobyl Catastrophe", "On Health","On Education", "On Sanitary and Epidemic Welfare,""On Pension Security", "On the Demographic Securityof Belarus", etc.

At the state level, the following important documentshave been adopted in the course of the past two years:the National Program of Demographic Security of theRepublic of Belarus for 2011–2015, the National ActionPlan on Gender Equality of the Republic of Belarus for2011–2015, the State Program to PromoteEmployment in Belarus for 2012, the State Programof Higher Education for 2011–2015, the State Programof Development of Physical Culture and Sport for 2011–2015, the State Cardiology Program for 2011–2015,the State Program of Prevention of HIV Infection for2011–2015, the Comprehensive State Program ofPrevention, Diagnosis and Treatment of Cancer for2011–2015, the National Baby Food Program for 2011–2015, the State Program to Create a Barrier-free LivingEnvironment for the Physically Handicapped Personsfor 2011–2015, etc.

The Republic of Belarus has a goal to be among the50 leading countries according to the HumanDevelopment Index (HDI). One of the main indicatorsof HDI is life expectancy at birth (LE). Since 2006,the Republic of Belarus has seen a steady growth ofLE, the value increasing from 69 in 2000 to 70.4 yearsin 2010: 64.6 years for men and 76.5 years for women.

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The increase in life expectancy at birth was the resultnot only of economic growth and improved livingstandards, but above all of a reduction in infantmortality from 9.3 to 4 ppm.

The country demonstrates a positive trend in the stateof public health. The incidence of some forms ofinfectious diseases (viral hepatitis, measles, rubella,etc.) has decreased, significant improvement has beennoted in the epidemiological situation re tuberculosis.There has been a reduction in the number of personsnewly registered as disabled as a result of injuries andaccidents. This was facilitated by state policies in thearea of health, aimed at increasing the availability andquality of medical services, stronger promotion ofhealthy lifestyles, and enhanced preventive measuresto strengthen public health.

The main priority in social development is to improvethe standard of living based on the growth of realwages, pensions, social benefits and other types ofmonetary income.

The state's deliberate policy aimed at increasing theincome of the population resulted in steady growth ofreal income levels, by a factor of 3.2 as comparedwith the year 2000. (Table 3.1.1)

In the period 2001–2010, real wages increased by3.3 times. As a result, the purchasing power of wagesreached a level of 2.62 times the minimum consumerbudget, against 1.26 in 2000.

Belarus has revised almost all the major regulationsgoverning wages and significantly changed itsapproach to managing wages in the private sectoron the basis of collective-contractual regulation.Conditions for wages are constantly elaborated inorder to motivate employees to be interested in theiroutputs, to ensure balanced growth of wages invarious types of economic activities and to avoidunjustified wage differentiation among variouscategories of employees.

Pensions and benefits make a significant structuralelement of the income of the population. The countryhas formed a multilevel system of pension payments,- consisting of a state-guaranteed social pension,pensions provided under compulsory pensioninsurance and additional voluntary private pensions -while maintaining the leading role of the state incompulsory pension insurance. In terms of pensions,the state policy is aimed at the stable operation ofthe system, timely payment of pensions, maintenanceof their real level. By the end of 2010, 2.6 millionpensioners were registered with the agencies forlabor, employment and social protection, and theaverage size of the assigned individual pension was2.5 times the minimum living wage.

Given the increasing cost of living, an important roleis played by gradual increases in the size of assignedpensions, adequate to the growth of average wagesand salaries. As a result, in the past five years theratio of the average size of pensions and the average

Table 3.1.1. The state’s deliberate policy aimed at increasing the income of the population resulted in steady growth of real income levels, by a factor of 3.2 as compared with the year 2000.

Indicator 20001 2005 2006 2007 2008 2009 2010

Real monetary income of the population, as compared to the level of the previous year %

114,1 118,4 117,8 113,2 111,8 102,7 115,1 Real wages, as compared to the level of the previous year, % 112,0 120,9 117,3 110,0 109,0 100,1 115,0 Real size of the assigned pensions, as compared to the level of the previous year, % 143,2 113,2 123,4 105,4 104,7 100,2 123,9 Share of the population with a level of disposable income lower than the minimum living wage, % of the total population 41,9 12,7 11,1 7,7 6,1 5,4 5,2 Ratio of disposable income: 10% of the most well-off population to 10% of the least well-off population, 5,8 5,4 5,6 5,9 5,9 5,6 5,6

1 Including denomination of 2000

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monthly salary was within the limits for the minimumvalue as recommended by ILO: 40%. Minimum laborand social pensions and allowances have beengrowing steadily, as well as markups and raises.Monthly supplements were assigned to pensions fordisabled children under the age of 18, people withgrade I, II and III disabilities (including those disabledsince childhood), and children who have lost theirproviders. In order to improve social protection forelderly persons, the pension legislation and generalregulations include provisions to increase theretirement pension for persons with grade Idisabilities, as well as persons over the age of 80and those in need of permanent assistance inaccordance with the decision of medical agencies.

A comprehensive program of social services for 2011-2015 was developed for the purpose of increasingthe level and quality of life of veterans, personsaffected by war, the elderly and the disabled, andenhancing the effectiveness and accessibility of socialservices and approximations of social services to theconsumer. This initiative included the subprogram"Social Support of Veterans, Persons Affected by War,the Elderly and Disabled", "Disability Prevention andRehabilitation of Persons with Disabilit ies","Development of In-patient Social Service Facilities."

Today, the national system of state benefits coversabout 440 thousand children under the age of 18, or25.3%. The size of benefits and compensations forthe birth of children have been substantially increased.

Consistent implementation of government measuresto raise incomes and ensure social protection of thepopulation have contributed to a significant reductionin poverty: the proportion of citizens with a level ofdisposable income below the subsistence wagedecreased from 41.9% in 2000 to 12.7% in 2005 and5.2 % in 2010. The objective to "reduce by more thanthree-fold the proportion of people living below thenational poverty line over the period 2000-2015" hasbeen successfully implemented in Belarus.

Due to the state's social support for marginalizedgroups, the Republic of Belarus has not allowed forsignificant differentiation between income levels. Inrecent years, the gap in the ratio of income between

the most and least well-off population groups hasalmost not changed: in 2000 it was 5.8%, in 2010, 5.6%.

One of the key objectives of social development is toensure effective employment and keepingunemployment within a socially tolerable range.

For a long period the situation in the labor market wascharacterized by a steady trend of growth in labor supplyand a reduction in demand. As a result, the level ofregistered unemployment increased (2.1% in 2000 and3.1% in 2003). Since 2004 there has been a tendencyfor increase in the demand for labor and reduction inunemployment - 1.5% of the economically activepopulation in 2005 and 0.6% in 2011 (Figure 3.1.1).

The tendency of reduction in unemployment amongwomen and youths has also proved steady. Thus, theproportion of women in the total number of theregistered unemployed fell from 60.7% in 2000 to54.1% by the end of December 2011. There has alsobeen a reduction in the level of youth unemployment- from 53.9% in 2000 to 37.1 % in 2010.

The main efforts of the state in the field of employmentare aimed at the formation of a rational structure inaccordance with the requirements of the reformedeconomy, increase in the efficiency of labor use andits competitiveness. The emphasis is on creating newjobs in export-oriented industries and services,stimulating the development of small and medium-sized enterprises, improving the quality of laborpotential, reducing the imbalance of supply and

4

2,1

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Годы

%

Figure 3.1.1 – Dynamics of registeredunemployment in Belarus

(in % of the economically active population)

18


demand of labor in the labor market by improvingvocational training and retraining, improving theterritorial mobility of labor.

Implementation of all of the state's identified prioritiesand objectives has been possible only on the basisof popular support and social consolidation inBelarusian society. Only efficient social policy inconjunction with the initiative of Belarusian citizenscan ensure improvement in the quality of their lives,in their confidence in the future.

3.2. Economic Development

In twenty years of independence, the Belarusianeconomy has gone the distance from being the"assembly line" of the USSR to becoming a sociallyoriented and highly efficient economy aimed at export.The country has not only been able to maintain itseconomic potential and brands, but also managed todevelop them, create new lines of highly competitiveproducts, making the seal "made in Belarus"recognizable in many overseas markets. Over the years,Belarus has proved the consistency of its economicmodel. Favoring the evolutionary path of development,non-shock reforms and gradual transition to market

economy principles, the country has escaped the majorupheavals endured by many post-Soviet countries,including the global financial crisis.

The main indicator of macroeconomic dynamics -national GDP – has been growing steadily since 1996with an average increase of 6.3% per year up to 2000and 7.5% and 7.3% in the two consecutive five-yearperiods. During the period 2000–2011, the grossdomestic product of Belarus increased by a factor of2.1, and GDP per capita in dollars at purchasing powerparity by a factor of 3.0. In terms of the average annualGDP growth rate, Belarus was ranked 25th among183 countries with 107%. The same pace was seenin the growing efficiency of the Belarusian economy -in 2000–2011 labor productivity in the country grewby a factor of 2.06 (Figure 3.2.1).

In line with global trends, the GDP growth in Belarustook place against a backdrop of changes in theindustrial and technological structure of gross addedvalue towards increasing the proportion of high-efficiencyproduction and expansion of services. In terms of GDPstructure, Belarus is currently close to the Baltic Statesand other countries with emerging economies.

Belarus specializes in the manufacture of engineeringproducts, chemicals and petrochemicals, food

Figure 3.2.1. Dynamics of labor efficiency and GDP in PPP per capita in Belarus in 2000-2011.

5086 5468 5868 64457273

8562

10938

12727

15028

9760

12555

13898

100 105 111120

135144

157168

182 181194

206

0

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4000

6000

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Годы

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240%

ВВП на душу населения

темп роста производительности труда, к уровню 2000 г. (правая ось)

USD in PPP

GDP per capita

Dynamics of labor efficiency as compared to the level of 2000 (first axis)

19


processing, light industry, as well as livestock, flax,potato, and demonstrates stable performanceindicators in the real sector. Overall, in the years2000–2011 the volume of industrial output in Belarusgrew by a factor of 2.4, agricultural output by a factorof 1.7, and the volume of contracted worksgeneralized as "Construction" grew by a factor of 3.4.

Active investment contributed to the transformationof the economy into a system based on marketrelations, rapid reconstruction and restructuring ofenterprises, accelerated development of high-techindustries, enhanced competitiveness of Belarusianproducts, as well as implementation of priorities ofsocial development of the country. Investments infixed capital in Belarus grew at an annual averagerate of 5.9% in the years 1996-2000, 12.4% in 2001–2005 and 18.1% in 2006-2010. As compared with2000, the volume of investment in 2011 increased bya factor of 4.7.

Rejecting total privatization at the early stages of itsindependence, Belarus developed mainly throughinternal investment resources. However, realizing theimpossibility of carrying out large-scale modernizationof its productive capacity without significant capitalinflows, the country has made every effort to create afavorable investment climate, which is reflected in theimprovement of the national legislation to protectinvestors' interests. In particular, the country hasadopted a strategy to attract direct foreign investmentsup to the year 2015.

The achievements of Belarus in creating a favorablebusiness climate and the increased investmentattractiveness of the country have been recognized

internationally, resulting in a gradual improvement ofthe country's position in leading country rankings. TheWorld Bank's "Doing Business" reports haveobserved positive trends in the business areas ofRepublic of Belarus, in areas such as obtainingconstruction permits, registering property, protectionof investors, taxation, resolution of insolvency(liquidation) and others (Table 3.2.1).

The Program of the Government of the Republic ofBelarus for 2011–2015 stipulates furtherimplementation of measures aimed at Belarusachieving top rankings in international credit ratingsthat reflect competitiveness, the businessenvironment, level of innovation and efficiency ofpublic administration.

The achievements of the Belarusian economy arealso largely due to the fact that science has taken anactive part in solving the problems of the real sector.New technologies produced in laboratories, researchcenters and industrial parks have been constantlyintroduced into manufacturing, creating a fulcrum forinnovative development of the country, which isespecially important during changing waves ofinnovation and opening up "windows of opportunity"for technological breakthroughs. The country has afunctioning and productive technology park with itsresidents working with more than 50 countries aroundthe world.

The Belarusian economy is highly integrated into theinternational trading system - the country's exportaccounts for 85.4% of GDP. The positive image ofBelarus in global markets is shaped by such brandsas "Belarus", "BelAZ", "Atlant", "Hephaestus",

Table 3.2.1. The dynamics of certain components «Doing Business» rating

Components of the rating 2005 2006 2007 2008 2009 2010. 2011

Index of investor protection (from 0 to 10) 4 4 5 5 5 5 5

Time necessary for business start-up, days 79 69 48 31 6 5 5

Business registration procedure, quantity 16 16 10 8 5 5 5

General tax rate, % of income 138 138 121 118 100 80 63

Tax payments, quantity 125 125 124 112 107 82 18

20


Figure. 3.2.2. Indices of foreign trade of goods and services of Belarus in the period 2000-2011

"Belaruskali", "Savushkin Product", "Milavitsa","Pinskdrev" and others, with ever increasingassistance rendered to them by the IT.

Not possessing sufficient raw materials of its own,Belarus mainly imports fuel and energy resources,metals, and various semi-finished products -intermediate materials account for more than 75% ofBelarusian import. Exposure of the world oil and gasmarkets to substantial fluctuations makes theBelarusian economy vulnerable and aggravates itsability to balance its economy in the event of a sharprise in import prices. In the period 2005–2011, importprices on energy products for Belarus increased by2.6 times, while the imported volumes grew only by afactor of 1.3; in conjunction with the expansion ofdomestic demand and the fixed exchange rate, thatapplied significant pressure on the trade balance andbalance of payments and led to a devaluation of thenational currency. However, the measures taken toscale down domestic demand and promote exportled to structural changes in trade flows and led to theexport growth rate exceeding imports by more than28 percentage points. In 2011, the 5-year negative

trend of lack of growth in the physical volume ofexports with constant growth of imports was reversed.The trade balance deficit was brought back to therange of values comparable to that of 2000 - minus3.0% (Figure 3.2.2).

More than 60% of the country's produce was shippedto foreign markets in 2011, which has greatlystrengthened both the foundation for achieving thestrategic objectives of achieving a positive tradesurplus and the performance of the National Programfor the Development of Export in the Republic ofBelarus for 2011–2015 .

The effective functioning of the economy is impossiblewithout development of competition betweenmanufacturers. Proceeding from this principle,Belarus is gradually moving towards an optimalbalance between state and private initiative. Thecountry has carried out consistent work aimed atprivatization and the development of public-privatepartnerships, thereby changing approaches to publicmanagement. Small and medium businesses havestarted to play an increasingly important role in the

7640,815689,2

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46670,4

-8087,2 -8982,1 -9787

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экспорт товаров и услуг

импорт товаров и услуг

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USD mln.

Export of goods and services

Import of goods and services

Balance of trade in goods and services, re GDP (right axis)

21


country. In the period 2008–2010, the number of smalland medium business entities of all forms ofownership increased by a factor of 1.5, which wassupported by the implementation of the state complexprogram for the development of regions, small andmedium towns for 2007–2011 and the transition tothe declarative principle of state registration.

Additional impetus to the development of businesswas given after the adoption of Directive #4 of thePresident of the Republic of Belarus of December31, 2010 "On the Development of Entrepreneurshipand Stimulating Business Activity," which stipulatesthe implementation of a range of measures toliberalize pricing, improve competition law and issuesof rent control, reduce administrative barriers,optimize the tax burden, and many other measures.

The Republic of Belarus is open to full-fledgedinternational cooperation in the economy. In thecourse of the past few years, the country has beendeveloping in conditions of enhanced integration withRussia and Kazakhstan within the Customs Unionand Common Economic Space. Currently, membercountries have removed all barriers to mutual tradeby opening up their national borders, adopted acommon customs code, and ratified 17 agreementswhich serve as the basis for the formation of theCommon Economic Space. Further constructivemultifaceted partnership within the CES will contributeto the development of the full potential of strategicinteraction between the three nations and to thewelfare of the citizens of Belarus, Russia andKazakhstan.

For many years now, Belarus has been building itseconomy on the principles of sustainabledevelopment, which involves a complex linkage ofeconomic, social and environmental components. Thegrowth of Belarus' GDP comes about in line withconstant increase in the levels of investment into theprotection and rational use of water resources andair. The share of funds allocated for these purposeswithin the total investment in fixed assets grew in2006-2009 by a factor of 1.87 (from 0.44% in 2006 to0.81% in 2009). At the same time, there isstrengthening of the social component of the country'sdevelopment - ever more attention is paid to human

development, towards improving the educational andcultural level of the population, ensuring effectiveservice delivery in health and growth of incomes. Theshare of socially-oriented sectors (education andhealth) in the country's GDP has increased over the20 years of independence of the Republic of Belarusby a factor of 1.9 - from 4.3% in 1990 to 8.4% in 2010.

However, the global processes of gradual depletionof natural resources, increasing food shortages andthe significant anthropogenic impact on theenvironment has forced the international communityto take a new look at the elements of this triad,emphasizing the efforts to shift the economy to the"green" track. Belarus also intends to move towards"green" growth, developing new environment-friendlyindustries and establishing processes of continuousand permanent "green" improvements to ensureadditional environmental and social gains in terms ofreduced greenhouse gas emissions and pollution,creating jobs and innovative products.

3.3. Environment and NatureManagement

In the course of the past twenty years, humanactivities in the Republic of Belarus have not had anincreased negative impact on the integrity ofecosystems that provide vital functions to the benefitof economic growth and human welfare.Implementation of environmental policies, programsand action plans based on the principles ofsustainable development have provided forimprovement of the ecological situation in the countryincluding most of the major industrial centers, andcontributed to more efficient use of renewable andnon-renewable natural resources. The highest priorityof the State Environmental Policy of the Republic ofBelarus is to maintain a favorable environment andrational ("smart") use of natural resources to meetthe needs of present and future generations.

In terms of environment management in the Republicof Belarus, there is an established legal basis fortransition to the "green" economy model: there arecodes that have been developed and implemented

22


(water, forest, land, subsoil), laws "On EnvironmentalProtection", "On Specially Protected Natural Areas""On Fauna", "On the Vegetable World," etc. There issystematic inventory-taking of all natural resources:nine state cadasters are kept, including those for land,water, forest, flora, fauna, mineral resources. For thepurpose of prudent use of natural resources, limitsfor extraction (removal) of natural resources havebeen approved, special permits are issued, and thereis a tax on extraction (removal) of natural resourcesand land tax, as well as forest use fees.

The dominance of legal and regulatory practices innatural resources management and the regulation ofrelations between the owner (the state) and the usershave had a positive effect in the field of environmentprotection and management. And while society atlarge is aware of the need for a transition to theprinciples of sustainable development, the country'slack of fuel and energy resources and the need topurchase them at constantly growing world marketprices make it necessary to increase the volume ofmining, for example, for potassium salts, which areabundant in our country. This approach is notconsistent with the principles of "green" economy andis preconditioned by the present-day conditions ofsocial and economic development of Belarus.

3.3.1 Protection of the Atmo=sphere

From the standpoint of the modern understanding andresolution of the issues of sustainable developmentbased on "green" principles, the main problemsrelated to atmospheric pollution are associated withpollution of atmospheric air by all energy and industryentities and mobile sources, with climate changecaused by greenhouse gases and ozone depletion.

As a result of competent state policies to protect airquality, conducted in the period 1990–2010, totalemissions from stationary and mobile sourcesdecreased by a factor of 2.6, from stationary sourcesby a factor of 3.1 (Fig. 3.3.1.1).

Due to the modernization of many industrial plants,greening of economic activity, more stringentenvironmental regulations and limitations imposed for

atmospheric protection, the levels of emissions in allmajor industrial centers have decreased, althoughoccasionally elevated concentrations in the air areregistered.

Reductions in emissions from stationary sources havebeen achieved through conducting a targetedenvironmental policy, including increased rates ofenvironmental tax on emissions of pollutants into theair and the introduction of an automated emissionaccounting system for businesses, as well asincreased fines for violating environmental laws.Positive results were facilitated by the introduction ofprogressive technologies and implementation ofenergy saving measures. While increasing productionoutput, large polluters have installed both dust andgas-traps, bringing the proportion of trapped andneutralized emissions from stationary sources from77% in 1990 to 88% in 2010.

There was a steady decline in emissions from mobilesources across the country, despite the fact that overthe past 20 years the Republic's car fleet has grownconsiderably.

Positive results were achieved mainly due to energysaving, restructuring of fuel consumption and shiftingof boilers to natural gas, as well as the introduction ofpayments for emissions of the main greenhouse gases.

As no ozone-depleting substances are produced inBelarus, the main efforts are focused on the reductionand termination of their use in industry and agriculture.

Figure 3.3.1.1. Dynamics of emission of airpollutants from stationary sources in 1990-2011

388,3 403,7528,3

1173,3

370,9

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1600

1990 1995 2000 2005 2011Годы

Тыс.тThousand tons

23


3.3.1.1 Greenhouse Gases

In Belarus, which is a signatory party to the UNFCCCand the Kyoto Protocol to the UNFCCC, reducinggreenhouse gas emissions is a priority. During theperiod 1990-2010, total emissions decreased from139.18 to 89.44 million tons of CO2-eq. (Figure3.3.1.2). Carbon dioxide emissions in absolute termswent down from 103.8 million tons in 1990 to to 58.3million tons in 2010, which is 56% of the 1990 levels.This was mainly due to reductions in fuel consumptionfor heat and electricity production, as well as changesin the structure of fuel consumption - an increase inthe share of natural gas from 65% in 1990 to 92% in2010. Reduced emission of greenhouse gases hasbeen achieved through energy saving, reconfiguringboilers to burn natural gas, and use of non-conventional energy sources.

Belarus seeks to prevent the entry of CO2 into theatmosphere, and thus much attention is paid todevelopment of forestry, preservation of wetlandecosystems, re-wetting of exhausted peatlands.

Positive results have been obtained mainly due toenergy savings, the restructuring and transfer of fuelburning boilers to natural gas, as well as theintroduction of payments for emissions of the maingreenhouse gases. Currently the state is considering

issues regarding the adoption of nationalcommitments to reduce greenhouse gas emissionsby 2020.

3.3.2 Industrial and Consumer Waste

At present in Belarus over 1400 types of waste aregenerated, possessing a wide range of morphologicaland chemical properties. The volume of accumulatedindustrial waste is growing and totals approx. 950million tons. Over 85% of the accumulated waste ishalite waste generated in the course of production ofpotash fertilizers. Its volume increased from 23.3million tons in 2000 to 44.3 million tons in 2011 (Figure3.3.2.1).

Ever-increasing levels of waste use reached 31% by2010. More than half of the waste is utilized for theneeds of the generating enterprises, the rest is soldto other enterprises or exported.

The volume of toxic (hazardous) waste productionincreased slightly, but its proportion in the totalgeneration of waste dropped from 3.1% in 2000 to2% in 2010. On a positive note, since 2005 the volumeof processed hazardous waste has exceeded thevolume generated, i.e. previously accumulated wasteis being utilized.

Fig. 3.3.1.2. Dynamics of GHG emissionsin Belarus in the period 1990-2010

Млн т СО2 - эквивалента в год

0

20

40

60

80

100

120

140

160

1990 2000 2005 2006 2007 2008 2009 2010Годы

Figure 3.3.2.1. Dynamics of generation andutilization of industrial waste in 2000-2011

43,8 44,3

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образование отходов производстваиспользование отходов производства

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Industrial waste generationUtilization of industrial waste

24


Over the last decade, Belarus has seen steady growthin the volume of municipal solid waste (MSW). If in2000 about 2,000 tons were collected, and in 2010,3765 thousand tons (about 70% removed from thehousing stock). The index of specific MSW generationgrew from 0.540 to 1.09 kg/person per day duringthis period. As of 2010, the total area of land allotmentfor MSW landfills is about 900 hectares, more than50% of which is taken by waste. In recent years theproportion of packaging waste in municipal waste hasincreased significantly. In order to involve municipalwaste into circulation as a secondary raw material,the country has five waste treatment plants in Gomel,Mogilev, Novopolotsk, Brest and Baranovichi (firststage). There is a plan to build such facilities in comingyears in cities with a population of over 100 thousand.

Sorting and recycling are effective means of reducingthe amount of MSW at landfills, as MSW containsvaluable components that can be used as secondaryraw materials. The main problems in the treatmentof MSW are associated with imperfections in thecollection and sorting system.

Currently, the state environmental policy on thetreatment of MSW is moving towards improving theregulatory framework, recovering costs for collectionand disposal of municipal waste, introducing theprinciple of greater responsibility of producers andimporters, and strengthening the role of national andlocal governments and private entrepreneurship inthe resolution of existing problems.

Thus, the most problematic area in the field ofenvironmental protection in the Republic of Belarusis waste management, primarily of large-scale andsolid municipal waste.

3.3.3. Water and Potable Water Supply

With its large reserves of water resources, Belarusfully meets the needs of the national economy andthe population for ground and surface waters. In orderto implement the principles of sustainable water use,the country is covered by a set of measures for waterconservation and protection of water bodies. Theresult is sustainable reduction in water intake from

natural water bodies (down by more than 46% in1990-2010) and in water use in all sectors, exceptfisheries, which has been actively developing recently.In all industries, the water-intensity of productiondeclined by more than 2 times in the years 2000–2010. The extension of metering in the residentialsector of urban settlements to 98% provided for areduction in water use for drinking and householdneeds down to 134 liters/day per person in 2010,which is close to European levels (Figure 3.3.3.1).

The population of Belarus obtains 92% of its drinkingwater from groundwater sources, with sanitation andhygiene at the corresponding intakes meeting modernrequirements. The exception is water with a highcontent of iron and manganese, as well as a lowfluorine content, due to its natural origin. Before thewater is supplied to consumers it is treated for ironremoval via simplified aeration.

Problems with drinking water quality have beenresolved in recent years, especially in rural areas,through development of a centralized water supplysystem to replace rural wells, as well as constructionof iron removal facilities. Today, more than 99% ofthe population is supplied with standard qualitydrinking water and less than 5% of rural residentsconsume drinking water which does not meet healthand sanitation requirements. According to the Water

Fig. 3.3.3.1. Dynamics of household water usein the period 2000-2011.

Л/сут ./чел.

214 206

143 134

0

50

100

150

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250

2000 2005 2010 2011Годы

l/day/person

25


Strategy of the Republic of Belarus for the period upto 2020, centralized water supply should cover 100%of the rural population in agro-towns by 2020.

The country has developed its water recycling systemin order to cover the water needs of industrial facilities,especially energy facilities. In the period 1990-2010,the share of recycled water in the total volume usedfor production was more than 90%.

The reduction of fresh water consumption in themanufacturing sector, housing and utilities sectorshas led to a reduction in sewage water discharge intowater bodies. Effluents treated to standard qualitymake up most of the total volume of sewage. In 20years, the discharge of inadequately treated(contaminated) waste water has dropped significantly:the volume now does not exceed 1% of the totaldischarge. In order to protect water bodies andprevent pollution of surface and ground water, thestate and business entities have been allocating largeamounts for the construction and reconstruction ofsewage treatment plants over many years.

Belarus applies fairly strict requirements regardingthe management of water protection areas,minimizing the ingress of contaminants into aquifers,reservoirs and streams. There is still an issue ofpollution of individual sections of streams down fromindustrial centers, and of reservoirs located nearlivestock farms and large industrial enterprises.

3.3.4. Preservation of NaturalEcosystems, Biologicaland Landscape Diversity

Preservation of natural ecosystems, biological andlandscape diversity is a vital interest of the Republicof Belarus in the field of the environment and a priorityof public policy.

The instruments for the implementation of the statepolicy for preservation of biological diversity areregulated by the laws of the Republic of Belarus "OnEnvironmental Protection", "On Fauna", "On theVegetable World", "On Specially Protected NaturalAreas".

These mechanisms include:

Creating and maintaining a system of speciallyprotected areas of national and localimportance, of the national ecological network,of biosphere reserves;

Maintenance of the Red Book of Belarus;

Organizing and keeping records of volumes offauna and flora and the volumes of their use,keeping inventories and conducting monitoringof flora and fauna;

standardizing and regulating the use of animalsand plants;

regulating the distribution and abundance ofinvasive alien species of wild animals and wildplants, and other instruments.

The system of specially protected areas provides oneof the main mechanisms for maintaining thefunctioning of ecosystems, biological and landscapediversity. These territories ensure the preservation ofthe gene pool and serve as centers of reproductionfor flora and fauna. About 80% of rare and endangeredplant species and about 30% of the identified areasof their growth are protected within the boundaries ofthe protected natural areas of Belarus, as well asabout 90% of rare and endangered species of wildanimals and over 50% of their identified habitats.Furthermore, the establishment of protected areascontributes to the preservation of the natural state ofold-growth forests, swampy areas and water bodieswhich play an important role in maintaining biological

26


and landscape diversity, the formation of the climate,and improvements in the environmental situation.

The country has 1302 Specially Protected Areas,including the Berezinsky Biosphere Reserve, the"Belovezhskaya Pushcha", "Naroch", "Braslav lakes"and "Pripyat" National Parks, 417 wildlife sanctuariesand 880 natural sites of national and localsignificance. Currently, the area of specially protectednatural territories of the republic occupies 7.7% ofthe territory of the Republic of Belarus.

The national strategy for development managementof protected areas in the Republic of Belarusstipulates that the area of protected areas shouldreach 8.3% of the territory of the country by 2015. Tothis end, the Government has approved a schemefor the rational distribution of protected areas ofnational importance, and regional schemes aredeveloped locally.

The system of specially protected areas in theRepublic of Belarus is acknowledged at theinternational level. A number of areas, such as theBerezinsky Biosphere Reserve, "BelovezhskayaPushcha" National Park, the national wildlifesanctuaries "Olmanskie bogs", "Pripyat", "Prostyr","Kotra", "Osveysky", "Sporovsky", "Zvanets", "Yelnya"have international statuses as Biosphere Reserves,or Natural Heritage sites, Ramsar sites, importantplant areas, or important bird areas.

Rare and endangered species of wild animals andplants are included in the Red Book of Belarus.

Currently, the Red Book of Belarus included 188species of wild animals and 293 species of wildplants.

For the purpose of saving the rare species(bittern,greater spotted eagle, aquatic warbler, snipe, smew,roller, moonwort, Liparis loeseli, etc.), protectionaction plans are being developed and implemented,and habitats and growth areas are being placedunder the protection of land users. Resettlementactivities are being conducted in order to restorepopulations of rare and endangered species of wildanimals and wild plants (bison, sturgeon,Adenophora, etc.). In particular, the reproduction ofthe bison in Belarus started with state support in the1940s in Belovezhskaya Pushcha, when 10 bisonwere brought from Poland to start the population.Now Belarus has more than a thousand specimensof this rare species.

Despite the high recreation applicability of the naturalareas, existing landmarks, natural and natural-anthropogenic landscapes, for a long time Belaruswas paying insufficient attention to development ofrural tourism. Environmental education of thepopulation was carried out only with reference to theexhibits of local history museums and museums ofnature. Drastic changes were outlined in 2006 afterthe President of the Republic of Belarus signed twodecrees relating to state support for rural tourismthrough tax benefits and loans.

Currently, the country is implementing a number ofstrategies, state and regional programs aimed atdeveloping tourism in general and rural tourism inparticular.

For effective development of rural tourism, agro-tourist complexes and homesteads are being built andspecialized scientific and educational tours andenvironmental-focused excursions are beingdeveloped. A systematic approach to the developmentof rural tourism applied by state and localgovernments has led to an increase in the number ofrural tourism entities, from 34 in 2006 to 1,576 in 2011.The number of tourists utilizing rural tourism servicestotaled 145 thousand people in 2011, 21.5% morethan in 2010.

27


3.3.5. Mineral Deposits

Today the Republic of Belarus fully covers its needsfor potash, salt, lime and cement, refractory andceramic clays, construction sand, gravel, facing stoneand fresh underground water with its own deposits.The country has significant resources of mineral water(226 explored deposits of mineral water, 128 of whichare operated), which form the basis for thedevelopment of sanatorium and resort activities andthe creation of new mineral and potable water bottlingand sale enterprises.

Peat deposits are widespread, however their intensivedevelopment in the 20th century led to depletion.Excavated deposits now amount to 600 million tons,the rest is found mostly within protected areas. Theannual volume of peat extraction has decreased to2-3 million tons and is predetermined mainly by theneeds of the fuel industry. Peat is extracted in smallquantities for agricultural purposes. Complex use ofpeat and sapropelic resources has become topical.Currently the stock of sapropelic clays is estimatedat 3 billion m3.

In recent years there has been a steady reduction inthe balance of oil reserves, caused by imbalances inthe growth of grade A+B+C oil reserves and thevolume of production: in 2008 reserves growth was1.56 million tons and production was 1.77 million tons,in 2009, respectively 1.67 and 1.7 million, and 0.95and 1.68 million tons in 2010.

The fact of the country having limited oil reserves hasled to a recognition of the need for prudent productionfrom the country's own sources, thus in the pastdecade the production has stabilized at 2.0-1.7 milliontons per year. In the context of "green" economy, theintroduction of new technologies for extraction ofviscous oil is deemed urgent, as only low-gravity oilwas extracted in recent years.

Brown coal and oil shale may serve as sources offuel and energy resources in the future. Geological

surveys are currently under way in relation to thatmatter.

Being ranked highly in world reserves of potash, theRepublic of Belarus is currently developing only theStarobinskoye deposit, while the other two(Oktyabrskoe and Petrikovskoye) are not yet involvedin the economy. In 2011 OJSC "Belaruskali" won thetender for the development of the Petrikov site andhave already resolved the issue of attracting foreigninvestment.

There are deposits of tripoli, bentonite clays, silicasand, gypsum and other mineral resources preparedfor industrial development, but not yet developed dueto lack of modern mining and processing technologiesand lack of investment. There is an active state policyon the use of local mineral resources, as defined bythe program of development of mineral deposits andmineral resources of the Republic of Belarus for 2011-2015 and up to 2020. In 2012 construction of a newsoda factory shall commence on the basis of theKustovnitsky salt dome of Mozyr rock salt deposit,involving Chinese investments; in Lelchitsy region,production of products from local facing stone is tocommence; there are plans to sign a concessioncontract for the development of the Ostrozhanskydeposits of bentonite clays; detailed exploration ofthe Brinev deposits of gypsum will take place with aview to building a mining enterprise, and detailedexploration is underway at the marl deposits adjacentto the cement plants.

Effective use of mineral resources for sustainablesocio-economic development of the country isrestrained by a lack of modern technologies ofresource production and benefaction, a lack of properinvestment and the underdevelopment of marketrelations in the sphere of subsurface resourcemanagement. However, domestic developments inscience and technology allow us to study the subsoilat greater depths and develop mineral resourcespreviously considered to be poor and economicallynon-viable.

28



PROGRESS IN DEVELOPMENTOF A "GREEN" ECONOMY

4.1. Energy and FuelResources

Over the past decade, Belarus has made significantprogress in increasing the efficiency of the nationaleconomy (Figure 4.1.1). The main reason for thedecrease in the energy-intensity of GDP is a declinein the share of conditionally constant energy costsagainst a backdrop of economic growth.

Program activities on energy saving also largelycontributed to this trend. In 2011, savings in fuel andenergy resources made through energy efficiency

measures amounted to 1446.6 thousand tons of eq.fuel. The greatest effect has been obtained byintroducing modern energy-efficient technologies intoproduction (28%). According to the National EnergySaving Program for 2011-2015, savings in fuel andenergy resources made through the use of advancedtechnological equipment and the introduction of otherenergy-saving measures will total 7.1 million tons ofeq. fuel.

One of the priorities of energy sector development iscommissioning of high power facilities for electricitygeneration with minimum fuel consumption. In thisregard a positive trend has been observed. The year2009 saw the commissioning of generating equipmentwith an electrical output of 363 MW, followed by450MW in 2010, and 629 MW in 2011.

Another priority is the development of nuclear energy.A Belarusian nuclear power plant with a yield of 2340MW is expected to be built by 2018. Its commissioningwould replace more than 5 billion m3 of natural gasin the fuel balance, reduce the production cost ofpower generation, and create new opportunities toexport electricity to the EU. The introduction of nuclearfuel into the energy balance will reduce the country'senvironmental impact by reducing greenhouse gasemissions by 7-10 million tons.

Belarus seeks to develop local energy sources, asevidenced by an increase in their share in the balanceof boiler and furnace fuel (see Figure 4.1.2).

Figure 4.1.1. Energy intensity of DGP in meanannual prices of 2005

495,8

760,5

545,5450,8 429,6 426,4

417,0

0100200300400500600700800

2000

2006

2007

2008

2009

2010

2011

-оценка

Годы

Т у т / млрд руб.

ВВП

Tones of eq. fuel/bln BYR of GDP

2011

-as

sess

men

t

29

PROGRESS IN DEVELOPMENT OF A “GREEN” ECONOMY

In accordance with the Development Program for localand renewable energy sources for 2011-2015, theshare of the country's own energy resources in thebalance of boiler and furnace fuels must reach at least30% by 2015.

Pruzhany CHP is a pilot project which uses the latestadvanced technologies and is based on local energyresources. Analysis of its operations providesevidence of its efficiency; its equipment complies withall international environmental standards. A distinctivefeature of the project is the use of technology forcombined production of electricity and heat with fullautomation of all production processes. This projectalso performs a social task of developing the city'sinfrastructure and creating new jobs.

Accelerated development of renewable energy isalready an established trend for highly developedcountries - apart from increased energy security anddecreased dependence on oil and gas, this avenueoffers solutions to the issue of reducing greenhousegas emissions. In Belarus the alternative energy sectoris just beginning its development. The share of electricityproduced from renewable sources is less than 1%.

In order to give impetus to the development ofalternative energy and expand internationalcooperation in this area, the country has created a"Renewable Energy" association, adopted a law "On

Renewable Energy", and joined the InternationalRenewable Energy Agency (IRENA).

1840 sites for wind turbines have been identified inthe territory of the country. The first wind power plantin Belarus was commissioned in Grodno region in2011, and is one of the largest in the CIS in terms ofpower output (1.5 MW).

Production of electricity from municipal solid waste wasorganized at the "Trostenets" landfill, in the capital city.The site has the only active landfill gas removal facilityin post-Soviet territory, running biochemical processes:waste decomposes, forming methane and carbondioxide. Methane is used as an alternative fuel for powergeneration. Due to this technology, greenhouse gasemissions are reduced, the process of global warmingslows down, natural resources are saved, and generatedelectricity is fed to the grid.

There is ongoing construction of bio-gas systems:pilot projects were developed in 2008 and nowBelarus has 7 biogas systems, including two landfillgas power plants, three biogas complexes which useagricultural residues and two running on industrialwaste. There are plans to implement a range of pilotprojects by 2015 on the introduction of technologiesfor producing biogas from low-calorie organic partsof municipal waste and the remnants of waste water,and collecting and utilizing biogas generated atmunicipal waste landfills.

One of the priorities of Belarusian policy in the fieldof energy efficiency and renewable energy is thedevelopment of technical standards and regulations.The republic has developed 129 technical regulationsto ensure a comprehensive approach to establishingrequirements for fuel and energy resources, energy-consuming products, insulation of buildings andstructures, control and metering equipment, use ofproduction waste, secondary and renewable energysources. More than 80 of these documents areharmonized with international and Europeanstandards.

Currently the state implements a program ofdevelopment of the technical regulation,standardization and conformity assessment for

Figure 4.1.2. Share of local energy resourcesin the furnace fuel balance

16,8 17,2

20,3 20,6

23,2

18,1 18,3

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011

Годы

%

30


energy saving for the period 2011–2015, developedand approved by the State Standard Committee. Theprogram stipulates development of 136 nationalstandards, while European and internationalstandards form the basis for 123 of them (88%). Thereare provisions for the development of standards inthe field of renewable energy, local fuels, small powersystems, as well as the creation of standards aimedat improving the energy efficiency of buildings,development of energy management and energy auditof organizations.

A positive impetus to the development of "green"energy should come from legislative stipulation toassign multipliers to the tariffs for energy generatedfrom renewable sources. For the first 10 years afterthe commissioning of equipment, a multiplying factorof 1.3 is applied. Exceptions are made forinstallations that use solar energy - for them amultiplier of 3 is used. For the subsequent 10 yearsall types of installations are subject to a stimulatingfactor of 0.85.

Thus, the country is gradually creating economicincentives for alternative energy development, whichwill largely determine the "green" image of theBelarusian economy.

4.2. Industry

Industry is the dominant national consumer of oil(100% of national consumption), natural gas (80%),electricity (47%), ferrous metals (40%), and timber(100%) and thus defines the resource-intensity of theentire economy. In the absence of the majority ofminerals in the territory of Belarus, energyconservation and reduction of the resource-intensityof value-added production are especially important

for the industrial complex. Under thesecircumstances, transition to resource-efficientdevelopment and adoption of the principles of "greeneconomy" are vital for the survival of industrialproduction in Belarus, amidst internationalcompetition.

In the period from 2000 to 2011, an active state policyon the rational use of material resources broughtnoticeable results - the material intensity of industrydecreased by 10% and energy consumptiondecreased from 49% to 40% - a notable result, giventhe substantial growth in industrial output.

The achieved effect is a consequence of a deliberatepolicy to reduce consumption of material resourcesin real terms. As a result, consumption of basicmaterial resources grew significantly slower than theincrease in added value, and in some cases, as withconsumption of crude oil and natural gas, it remainedat the same level (Table 4.2.1).

The aforementioned period (2000–2011) can bedivided into two stages in terms of trends (Fig. 4.2.1).From 2000 to 2005 the consumption of materials inthe production of industrial added value decreasedby 30%, while its energy intensity dropped by 50%.Direct generalized energy costs per 1 billion rublesof added value in constant prices (tons of eq. fuel/bn.) decreased by 28%.

Once again, the active role of the government insaving material and especially energy resourcesshould be noted. It was during this period that thestate developed and implemented programs forenergy efficiency in all industries, as well asimplementing other measures to conserve energyresources. Their broad dissemination not onlyincreased profitability, but also minimized the harmfulenvironmental effects of industrial production.

Table 4.2.1. Dynamics of gross value added (GVA) and consumption of main materials by the industry

Indicator Industrial GVA growth

Consumption of crude oil, incl. gas

condensate, thousand tons

Consumption of electricity, mln kW.h

Consumption of finished ferrous metal,

thousand tons

Consumption of industrial wood,

thousand m2

Growth in 2005 as compared to 2000,% 168,1 147,4 106,1 146,5 123,6 Growth in 2010 as compared to 2005, % 152,2 83,1 106,0 136,9 103,1

31


In the past ten years, the country has seen a majortrend of rapid growth of GVA, compared with anincrease in industrial consumption of materialresources in real terms. Moreover, while in the firstfive years the effect had, to a greater extent, to dowith the savings which resulted from organizationalfactors, in the latter five years it was more due to theintroduction of effective energy-saving technologies,replacement of production equipment with lessenergy-intensive and more efficient equipment,reducing the thermal conductivity of buildingenvelopes, and using more rational design solutionsin designing products. Due to the modernization oftechnological equipment, the processing depth ofmaterial resources grew each year.

As of today, the issue of upgrading the domesticcement industry has been solved - new energy-saving"dry" cement production lines are being installed. Thelarge machine-building company "MTZ" hasconducted the modernization of energy-intensiveequipment in casting, thermal, electrochemical, andother workshops over the past two years. In order toreduce energy consumption at the large chemical

plant "SvetlogorsKhimvolokno", two new lines forproduction of non-woven materials werecommissioned, thus reducing the energy intensity ofproduction by almost 40%.

Throughout the five years, constant work has beendone to tighten up the rules and regulations onmaterial costs, modes of operation of productionequipment in the chemical industry and oil refininghave been optimized, a targeted industrial policy onthe rational use of material and energy resources,including installation of metering and consumptionmanagement equipment, has been conducted. Thesemeasures resulted savings of energy resources inthe years 2006–2010 which were 3.4 times greaterthan (in tons of eq. fuel) than for the previous fiveyears.

State environmental policy is implemented inBelarusian industry through improvement ofenvironmental legislation, certification of existingindustries and industrial products manufactured incompliance with environmental standards, andcreation of environmental management systems atenterprises. To date, the country has introduced 20thousand standards that are in effect; compliance withthese standards is aimed at ensuring environmentalsafety and the security of consumers of goods andservices.

Thus, for the purpose of declaring conformity to therequirements of the production of natural foodproducts without genetic engineering and artificialfood additives, the technical code "Food. "Naturalproduct" labeling rules. Main provisions" wasintroduced. As of the beginning of 2012, 76 local foodproducers had the right to label 597 of their productswith this sign.

Priority areas of industrial policy in the past ten yearshave included introducing environmental standardsaimed at minimizing anthropogenic impacts on theenvironment, and enhancing working health andsafety. A vivid example is the introduction by RUP"Belarusneft" of an environmental management andecological safety system, which meets therequirements of ISO 14000 and regulates activitiesfor oil and gas production, construction of wells, and

100

120

140

160

180

200

220

240

260

28020

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

10

Годы

%

1,5

1,6

1,7

1,8

1,9

2

2,1

2,2

2,3Раз

темп роста ВДС промышленности(2000г.=100%), левая шкала

отношение материальных затрат кстоимости ВДС промышленности,правая шкала

Figure 4.2.1. GVA growth in industry and materialintensity of its production

Growth of GVA in industry(year 2000 = 100%), left axis

Material costs to GVA costin industry ratio, right axis

32


generation of electricity. By implementing theprinciples of environmental protection enshrined inthis system, the company continuously conductscorresponding activities: mastering advanced drillingmethods, practicing drilling waste disposal inunderground repositories, using hydrocarbon lightfractions, catching installations, paying attention togardening and landscaping of the production site. In2008, another major petroleum-chemical company -"Belshina" – also received the environmentalcertificate, which testifies to the compliance of thesystems for environmental management, design,development and manufacture of pneumatic tires formotor vehicles with ISO 14000. In subsequent yearsa number of large industrial enterprises ("Naftan","Atlant" "MTZ", "Grodno Azot") have certifiedenvironmental management systems according toISO 14000.

The country is actively developing biotechnologiesas part of the "green" sector of the economy. Thesize of the market for biotech products in Belarus isabout U.S. $ 400 million per annum, with 20% of themarket accounted for by domestic products, and thisshare is growing. To date the country has establishedcommercial production of biologically activeadditives, feed protein and enzyme agents, andbiological plant protection. Belarus is building upproduction of biodiesel, which in recent yearsreached 900 thousand tons, covering 25% ofdomestic needs for diesel fuel. The plans for thenear future are as follows: construction of biogasplants, development of production of biotech-basedmeans of diagnostics, treatment and prevention ofhuman diseases, production of new biotechnologicalmeans of protecting animal health and means ofdiagnosing viral, bacterial and fungal infections;creation of large yeast production facilit ies,production of bacterial ferments and concentratesfor the dairy industry, etc.

4.3. Transport

The major direction of sustainable development inthe Republic of Belarus is the dynamic growth oftransport activity, with full coverage of transport

demand, ensuring environmental public safety andtraffic safety.

Belarus is located at the intersection of importanttrans-European corridors. In this regard, specialattention is devoted to development of railways, roads,air routes, transit and export-import traffic. Exportsof transport services in the years 1995–2011 grew bya factor of 11.7, and the balance surplus increasedalmost tenfold.

The volume of freight transportation in the republicincreased by a factor of 1.9, which is associated withthe growth of the economy. Passenger traffic isdecreasing due to the increasing number of privatecars, the convenient location of stores, and decreasedinterest in suburban activities.

However, the country's public transport performs asocial function, generating demand for passengertransportation at relatively low cost and providingbenefits for certain categories of people. As a result,the public transport system has managed to attractmore passengers in recent years.

Transport is the second largest consumer of energyin Belarus after industry and one of the majorenvironmental pollutants. The policy of "greening"transport in Belarus is based on three interrelatedapproaches: 1) reduction of unnecessary travel, 2)transition to more environmentally friendly modes oftransport, and 3) modernization of equipment and fuel

33


used in order to reduce their negative impact on theenvironment and reduce social costs.

Reductions in unnecessary trips by the population arebrought about by denser urban layouts, restrainingthe uncontrolled expansion of cities, constructingmulti-level junctions, creating a network ofconvenience stores, constructing agro-towns, andapproximating the standard of living of the ruralpopulation to that of urban dwellers.

According to the Program of Development of theLogistics System of the Republic of Belarus for thePeriod up to 2015, new delivery technologies are beingintroduced in order to optimize the freight logistics, anda system of logistics centers is being built.

Despite the advantages of road transport, urbanelectric transport is gradually becoming a moreprominent niche in the urban transportation ofpassengers. In 2011 its share rose from 37.6% to41.8% as compared with 1990. The operational lengthof subway rail track grew by a factor of 2.7, trolleybuslines by a factor of 1.3. Minsk is developing urbanelectric transport and implementing the "Urban train"project (railway commuting within the city).

Within the framework of the adopted State Programof Development of Railway Transport of the Republicof Belarus for 2011-2015, in order to implement thenew format of passenger transport and reduce theenvironmental burden and operating costs, BelarusianRailways is working on electrification of the tracks.Works on the Transport Corridor II are complete, andthe electrification of the Belarusian part of the IXBbranch is envisaged by 2015.

Due to its greater environmental friendliness, ascompared to other modes of transport, railwaysoccupy an increasingly prominent place in thestructure of freight transportation of Belarus, with theirshare growing from 27.8% in 2000 to 46.5% in 2010(Figure 4.3.1.)

Infrastructure for cyclists is actively developing. Thecountry has organized construction of bicycle paths,advertising and promoting their use, and expandedthe range of bicycles manufactured in Belarus. A

Concept for Cycling in Minsk for the Years 2012-2015has been approved, stipulating organization of up to500 km of bicycle paths in the city.

Much attention is being paid to improvement oftechnologies and fuel use: vehicles are beingconverted to run on compressed and liquefiedpetroleum gas and biodiesel, the quality of fuelproduced by local refineries has improved. The MinskEngine Plant has mastered production of Euro 4standard diesel engines and plans to reach the Euro5 level.

As a result of favorable conditions for the renewal ofthe rolling stock of domestic and imported vehicles,the transportation fleet for international goods wasexpanded with the addition of environmentally friendlymodels. Thus, if in 2000 73% of cars did notcorrespond to international standards, in 2010 allvehicles were compliant, 25% of them to Euro 5standard (Figure 4.3.2).

Figure 4.3.1. Structure of freight transportation bymodes of transport

2000 г.

27,8%

71,7%

0,5%

2010 г.

46,5%

51,4%

2,1%

железнодорожный

автомобильный

другие виды транспорта

rail transport

vehicles

other

34


The State Motor Vehicle Development Program for2011-2015 provides for the renewal of the current busfleet with modern models, produced domestically byMAZ. Within the framework of the IntelligentTransportation System, there are plans to implementautomated traffic control systems for buses usingsatellite navigation, which will improve the quality ofoperational control over the movement of buses,efficiency of public services and safety of passengertransportation.

The national airline "Belavia" has upgraded its fleetwith modern Western models. All aircrafts meet therequirements of international standards for technicalsafety and noise, and can perform flights toneighboring and foreign countries without anyrestrictions.

In the field of railway transport, Belarus has signedan agreement with the Swiss company Stadler tosupply trains for the new format of commuting. Thecountry has a joint venture for production of suchtrains.

The measures undertaken have enabled atmosphere-polluting emissions from transport to be reduced bya factor of 2.4 in 2010 as compared with 1990. At thesame time, the growth in income of the populationhas caused the number of private cars to increaseby a factor of 4.3 (Fig. 4.3.3).

The Republic of Belarus is taking effective measuresto ensure road safety. As a result, the number ofroad accidents decreased by 20%, the number ofvictims of road accidents by 32.4%, and the numberof injuries by 13.7% in 2011 as compared to 1993.The Concept for road safety in the Republic ofBelarus intends a decline of total losses in traffic byat least 25% in 2015 as compared to the 2005 level,including a reduction by at least 500 fatalities in trafficaccidents.

Figure 4.3.2. Share of Euro-1, 2, 3, 4, and 5 vehicles in 2000 and 2010

2000 г.

73%

8%

19%

не соответствуют стандартамЕвро-1Евро-2

2010 г.

38%

30%

7%

25%

Евро-2 и нижеЕвро-3Евро-4Евро-5

Not complying with standardsEuro-1Euro-2

Euro-2 and lowerEuro-3Euro-4Euro-5

Figure 4.3.3 Emissions of air pollutants fromtransport and personal vehicles number

2,2

1,7

11 0,9

1,7

2,5

1,4

0,90,6

0

0,5

1

1,5

2

2,5

1990 1995 2000 2005 2010

Годы

Млн т

00,511,522,53

Млн шт.

выбросы загрязняющих веществ в атмосферуот транспортаколичество личных автомобилей

Air pollutants from transport

Number of personal vehicles

Mln itemsMln tons

35


4.4. Construction, Housingand Utilities

The construction industry, as well as buildings andstructures in the republic are using up to 40% of thetotal of consumed heat energy resources, andproducing up to 35% of carbon dioxide emissions andnearly half of the municipal solid waste. Creation of afavorable environment, "green" construction andoperation of "green" buildings helps to reduce thenegative impact of construction on the ecologicalsystem.

The country has created the kind of urbandevelopment infrastructure that makes it possible tomake each Belarusian town unique, keep its identity,enhance attractiveness and create the conditionsnecessary for the development of tourism in thecountry. Annually, there are contests in the sanitaryconditions and living environment of differentcategories of settlements.

Over the past decade the country has vastly improvedthe appearance and sanitation of its urban and ruralsettlements. Belarusian settlements have acquired aEuropean appearance: villages with well-kept estates,cities with beautiful parks, architectural and urbanensembles, landscape architecture, landscaped streets,squares and embankments, individual developmentareas, recreation areas, European-level roads,comfortable walking paths, park sculptures andhardscape, modern approaches to gardening. Theadequacy of territorial development is ensured byregulations adopted in the field of urban planning and

ecology. Since 2004, Minsk and the regional centers ofthe republic have developed and improved accordingto new Master Plans under the law "On the Architecture,Urban Planning and Construction Activities in theRepublic of Belarus."

The country has developed its Guidelines for StateUrban Development Policy in the Republic of Belarusfor 2011-2015, stipulating further improvement of theliving environment through innovative approaches andthe achievement of sustainable socio-economicdevelopment goals. Priority areas include rational useof natural values, improving the architecturalappearance of construction, improving territorialorganization in the country and creating safe, healthy,and aesthetically complete living environments for thepopulation of Belarus. The state has developed acomprehensive scheme for the state territorialorganization of the Republic of Belarus up to 2030,taking into account priorities such as innovativemodernization of the economy, improvement of thequality of life, justified parameters of settlementsystem development, interregional and regionaltransportation and utilities.

In accordance with the law "On EnvironmentalProtection", Belarus is developing the section"Environmental Impact Assessment" as part of pre-design and design documentation. This assessmentincludes identification of possible impacts on theenvironment during implementation of the designsolutions, assumptions about the environment andpredicting its future state in order to be able to decideon the possibility or impossibility of implementationof the design solutions.

36


The law "On State Environmental Expertise" regulatesthis type of state expert assessment of urbandevelopment projects, of general, special, anddetailed planning, of area development architecturaldesigns. Although elements of the strategicenvironmental assessment are already included inthe development of plans, Belarus is yet to see itswide implementation.

The republic pays much attention to the improvementof landscapes and recreational areas. In accordancewith the Guidelines, by 2015 availability of publicplantings should be at least 8 m2 per person, theproportion of green areas in the city - at least 40%(Figure 4.4.1). Cities across the country are improvingtheir parks, squares, boulevards, flower beds and rockgardens, upgrading weakened tree plantations,planting trees, shrubs and flowers, developingrecreation areas, and introducing vertical gardening.The difficult issue of additional water-logging in thecapital city was resolved through the construction ofa water system.

Belarus is taking its first steps in developing the"green" city concept. The first such city with moregreen areas and corresponding territorial organizationwill be Logoisk.

The most important conditions for creating "green"cities are construction of new "green" buildings and

renovation of existing high energy- and resource-consuming ones. These measures reduce emissionsof carbon dioxide into the atmosphere and bring downenergy consumption in the construction sector. Itshould be noted that housing in Belarus consumes athird of the country's energy resources for heatingand hot water supply purposes, and so work to reduceenergy consumption in the home are of greatimportance. Over the past decade there has beensome progress in improving the energy efficiency ofbuildings and reducing heat loss.

One of the mechanisms for reducing energyconsumption is reorganization of old buildings andconstruction of energy efficient prefabricated houses.The country is already making the transition to theconstruction of buildings with modern architecturaland planning systems, modernizing and renovatingthe active part of the main foundations of buildingsand industrial organization of the constructioncomplex. Belarus was the first among the CIScountries to launch construction of energy efficientbuildings with heat costs 2.5-3 times lower than instandard homes.

"Green" energy efficient construction of residentialand public buildings is among the largest priority areasof modern architecture. Today, more than 810thousand m2 of housing have been built with energyefficient designs (see Figure 4.4.2).

Figure 4.4.1. Level of greenness and rate of green planting per capita in the cities

0102030405060

Брест

Витебск

Гомель

Гродно

Минск

Могилев

Барановичи

Бобруйск

Борисов

Мозырь

Полоцк

Лунинец

Светлогорск

Слоним

Озелененность, %

020406080100

Обеспеченность, м2/чел.

озелененность

обеспеченность населения насаждениями общего пользования

Greenness, %

Rate of publicgreen planting,m2/person

Greenness, %

Bre

st

Vite

bsk

Gom

el

Gro

dno

Min

sk

Mog

ilev

Bar

anov

ichi

Bob

ruis

k

Bor

isov

Moz

yr

Pol

otsk

Luni

nets

Sve

tlogo

rsk

Slo

nim

Rate of public green planting, m2/person

37


A comprehensive program for the design,construction and reconstruction of energy-efficienthouses in the country for 2009-2010 and until 2020has been developed, providing for the reduction inthe specific consumption of thermal energy for heatingdown to 60 kW h/m2 per year (2015), and in the futureto 30-40 kW h/m2 year (by 2020). There are plans tobe building up to 60% of such housing by 2020.Measures to reduce energy consumption in theconstruction and operation of buildings and facilitiesinclude: thermal upgrading of existing residentialbuildings, mass replication of energy-efficienthousing, organization of the production of virtually allproducts needed for furnishing homes, introductionof the European practice of calculating costs for theentire life cycle of the building.

Construction companies and organizations areamong the major suppliers and consumers ofsecondary material resources. In the course ofconstruction, about 12 tons of waste concrete isproduced, as well as 1.5 tons of waste sand-limebrick, 2.0 tons of gypsum sheets, 0.6 tons ofreinforced glass, etc. Much attention is paid torecycling and re-using these materials as intermediateand raw materials in construction, in production ofconstruction materials, at processing and recyclingenterprises.

Environmentally friendly materials are among of themost important elements of "green" construction,timber being the main one. Building of wooden housesis becoming increasingly important in housing.Residing in suburbs gains a more positive image;cottage housing is developing, alongside relatedinfrastructure outside the major cities. The volume ofconstruction of houses with wood serving as a primeconstruction material now accounts for 12% of totalindividual housing construction.

Production of environmentally friendly materials isexpanding. Corrugated cardboard, drywall sheets,straw blocks, etc. are now widely used. It is worthmentioning that roofs in individual houses are alsocovered with cane and aspen shingles, alreadyproduced in Belarus. At the same time, reinforcedconcrete and precast concrete remain primeconstruction materials.

4.5. Agriculture

With regard to agriculture, Belarus is conducting awell-established public policy. Significant results wereachieved in the course of implementation of the StateProgram of Rural Development for 2005-2010, as wellas a number of sectoral programs. A sustainabledynamic of growth in agricultural production wassecured (see Figure 4.5.1), the processing industryload was increased, export opportunities weresubstantially expanded, and the issue of food securitywas generally resolved. The observed growth ismainly due to increasing productivity of bothagriculture and animal breeding.

The potential for increasing production and reducingcosts in agriculture is fulfilled through the widespreaduse of information and high technologies, improvedfarming culture, and introduction of new forms ofmanagement. Differential fertilization and reclamationthrough the application of precision farmingtechnologies and electronic maps reduce material andlabor costs. In addition, satellite technologies help tocreate more accurate soil and agrochemical maps,which enables better planning of crop yields and moreefficient fertilization.

Figure 4.4.2. Total of energy-efficient housingcommissioned

27,9

305,8

476,6

0

100

200

300

400

500

600

2009 2010 2011

Годы

Тыс. м2Thousand m2

38


Figure 4.5.1. Dynamics of agricultural production and agricultural lands area

155,3165,5

152,4150,4138,5

132,7125,2123,1

109,3102,5101,8100 96,496,196,496,696,997,197,398,0

98,498,999,4100,080

100

120

140

160

180

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Годы

%

индексы физического объема продукции сельского хозяйства (в сопоставимых ценах)

индекс изменениие общей площади сельскохозяйственных земель

Indices of physical volumes of agricultural production (in comparable prices)

Index of agricultural lands area change

The State Program for Sustainable RuralDevelopment for 2011–2015 stipulates further growthof crop and livestock production, which is aimed atforming an effective competitive, sustainable andenvironmentally friendly agro-industrial complexwhich corresponds to international standards.

The current approaches to rural development areconsistent with the objectives of sustainableagriculture development, including: improvement ofthe environment and preservation of the diversity oflandscapes, maintenance of soil fertility by observingand regulating the biological interactions between soil,plants, animals and humans with minimal humanintervention in the naturally established order.

The most important events in the context of organicfarming in the Republic of Belarus have been thefollowing:

1) modernization of vocational training ofagricultural workers in the field of enhancingenvironmental friendliness of production,obtaining biologically safe agricultural products,standardization and labeling of food, use of newresource-efficient technologies and equipment;

2) conducting research on various aspects ofalternative agriculture;

3) ncreasing state control over production and useof modern biotechnology, particularly relatedto the genetic modification of animals andplants used for food products;

4) improvement of the breeding of farm animals,as well as the cultivation and protection ofcrops;

5) preservation, restoration and improvement ofsoil fertility of agricultural land for the purposeof maintaining and strengthening the naturaland ecological balance;

6) creation of special zones for manufacturingenvironmentally friendly products.

Currently, the country is developing scientific criteriafor: the production and efficient application ofenvironmentally friendly means of protecting cropsfrom pests on the basis of local raw materials andstrains of microorganisms; methodologicalfoundations of ecological security of plant protectionsystems; information technologies for plant protection;new resource-saving environmentally friendlytechnologies for the protection of agricultural cropsfrom pests, diseases and weeds.

One of the most pressing environmental problems isthe protection and sustainable non-exhaustive use

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of land. Land degradation of various types ispreconditioned by both natural factors and humanactivity, and by failures to comply with the norms andrules of rational land use and protection. The mainfactors of land degradation in Belarus are water andwind erosion, radioactive and chemical pollution, anddegradation of drained peat soils due to theirunsustainable use.

Of all types of land degradation, erosion is the mostacute and significant one. According to the latestround of soil surveys, the total area of agriculturalland affected by degradation due to erosion is about556.5 thousand hectares, or 6.2% of the total area.Eroded soils predominantly belong to arable lands -479.5 thousand ha (8.6% of the country's arable land).

The country works annually to prevent erosion andto ensure a steady increase in soil fertility through acombination of anti-erosion measures, which makea coherent system of soil conservation means andtechniques , including organizational and territorialmeans, agricultural measures, phyto-melioration,hydraulic and other techniques. The most productiveway to prevent erosion on agricultural lands is to shiftto landscape-adaptive farming and establish anti-erosion crop rotation.

Development of land management schemes foradministrative areas is an important direction for theorganization of rational land use and protection. Withinthe framework of the UNDP / GEF project"Mainstreaming Biodiversity Conservation intoTerritorial Planning Policies and Practices", newlydeveloped planning policies for several areas placed

an emphasis on ensuring sustainability ofecosystems, biodiversity and habitats of rare andendangered species.

In the period from the 1960s to the 1980s, the territoryof Belarus was subjected to large-scale draining.Ameliorative reclamation of swamps and wetlands,mostly in Polesie region, was aimed at changing thehydrology of the area and optimizing the cultural soilformation to increase the fertility of the land and thepossibility of its further use in agricultural production.

However, alongside the positive results of this project,ameliorative reclamation of more than 1000 hectaresof peat soils (1/3 of the reclaimed land) led to anumber of environmental problems. The key onesinclude mineralization of the peat layer, acceleratedland degradation, increased number of droughts andextreme frost periods, disruption of the hydrologicalregime of the reclaimed areas, transformation of theregime and chemical composition of surface andground waters.

Maintaining and improving soil fertility with the revisionof the methods used for farming on reclaimed peatsoils is aimed at protecting the land, improving theecological condition of soil, and increasing the fertilityof agricultural land. These activities are carried outwithin the framework of internal land developmentprojects.

After the Chernobyl disaster, a large part of Belarus -4.8 million hectares – was contaminated withradionuclides. Over the past 26 years the radiationsituation in the contaminated land has improvedsignificantly: short-lived radionuclides have decayed,and the concentration of long-lived radionuclides137Cs and 90Sr in the soil has decreased (byapproximately 40%) due to natural decay. There hasbeen a gradual decrease in the area of contaminatedlands which are used, with controlled minimumdensity due to natural decay of radionuclides andinclusion of lands in the non-contaminated category.

The wide-ranging complex of protective measures inthe contaminated territories of Belarus can be dividedinto three stages: 1986–1991, 1992–2000, and from2001 up to the present day. The first stage included

40


immediate, post-accident relief measures: theevacuation, followed by the resettlement of residents (atotal of 138 thousand people), and the decommissioningof 265.4 thousand hectares of agricultural land with anextremely high contamination density.

The second stage of specific protective measures(1992-2000) was conducted alongside a consistenttightening of sanitary and hygienic standards for137Cs and 90Sr content in food. Zoning of agriculturallands according to density of radionuclidecontamination only was not enough. Since 1992,protective measures have been implemented whichtake into account the specific characteristics of eachfield. During this period, new techniques of differentialmineral nutrition of plants and new forms of fertilizerwere applied.

The third period of protective measures, which beganin 2001, aims to ensure the production of regulatoryclean food products and agricultural raw materialsfor the processing industries.

In 2010, the State Program for Socio-economicDevelopment and Comprehensive Utilization ofNatural Resources of Polesie for 2010–2015 wasadopted. It covers seven districts of the Brest andGomel regions with a total area of 1.8 million hectares,which include many floodplains and reclaimed areas.The region includes nearly 90% of the Pripyatfloodplain and 320 hectares of reclaimed land.

This is the first regional program of integrated areadevelopment in our country which has a focus on"green" economy. The program envisages activeinvolvement of floodplain meadows in agriculturalproduction for the development of beef cattle breedingon pasture feed, complete restoration of drainagesystems for intensive management of crop andvegetable production, and mobilization ofdevelopment of recreational resources.

In recent years Belarus has taken active steps toreduce the impact of natural and anthropogenicfactors of land degradation.

The most relevant activities are those aimed atrehabil i tation of lands contaminated with

radionuclides, protecting land from wind and watererosion, conservation of reclaimed lands, especiallydrained peatlands, and afforestation of marginalagricultural and other unused lands. The most recentperiod was characterized by the implementation ofan agricultural land optimization program, which wasdue to the necessity of redistr ibuting andtransforming unproductive lands decommissionedfrom agricultural use.

4.6. Forestry

Forests are the largest ecosystems on the Earth,which not only provide timber and other biologicalresources, but are also among factors contributingto sustainable human development.

However, forest ecosystems have limited economiccapacity, and exceeding these limits is destructive toboth the environment and humans. The contradictionbetween the increasing use of forest resources andthe necessity of preserving them is removed, asevidenced by international experience, by "smart"rational and sustainable forest management, whichis the foundation of "green" forest economy.

Forest resources are one of the main naturaltreasures of the Republic of Belarus. The total areaof forest comprises, according to the National ForestInventory as of 01/01/2012, 9455 hectares, the foreststock - 1.636 billion m3, forested areas - 39%. Belarushas 173 m3 of growing stock per capita, which is 2.2times higher than the average value.

The forests of Belarus, being located in the heart ofEurope, perform important ecological andenvironmental functions, and solve the problem ofbiological and genetic diversity not only for our countrybut also for the whole of Europe, to a large extent.The annual growth of wood in the forests is estimatedat 31 million m3 and the total average annual fellingamounts to approx. 15 mill ion m3. Annualreforestation rates should be comparable to felling.

Over the past 10 years, a targeted forestry policypursued by state forest management agencies

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resulted in the growth of the forest-covered area andtotal stock by, respectively, 2.6% and 19.3%.Introduction of saplings into valuable tree plantationsincreased by a factor of 2.1 over this period, whilethe permitted felling for primary purposes grew by afactor of 1.4 (Figure 4.6.1). The annual rate ofreforestation and afforestation is, on average, 46thousand hectares.

Widespread use of biological and chemical protectionmethods have led to a reduction of forest pests anddiseases hotbeds by 12%. The successes inprotecting forests against fires are considerable: theoccurrence of forest fires shrunk fourfold in 2010 ascompared to 2000.

The issues of forest diseases, loss of forestplantations due to damage by wild animals, excessivemoisture and natural disasters are still relevant. Thetotal average annual loss of forest cover is 12.6hectares (0.16% of the total forested area), of which75% is due to exposure to adverse weatherconditions, including more frequent hurricanes.

The overall ecological and economic value of forestlands in Belarus, according to the forest inventory ofthe republican unitary enterprise "Belgosles", is morethan 80 billion U.S. dollars, with most of that sum(77.3%) accounted for by the environment protectionfunctions of forests, with the cost of the land itselfbeing valued at 18.3 billion U.S. dollars.

Given the economic importance of the forests, theyare divided into two groups. The first covers the forestreserves, national parks, and other forests performingprotective, water conservation, sanitation, and healthfunctions. The total area of this type of forest is morethan 4.87 million hectares. The second group includesforests which perform operational safety functions.They occupy 4.58 million hectares, or 48.5% of thetotal forest area of the country. Over the past decadethe proportion of forests of the first group grew by 1.7percentage points and reached 51.5%, indicating astrengthening of the environmental and socialorientation of the state's forest policy.

Forestry in Belarus operates in conditions of stateownership of forests and centralized forest use andmanagement. The state's main goal in the area offorestry is to ensure sustainable, cost-effective,environmentally responsible and socially orientedforest management, based on the principles ofuniformity, integrity, consistency, and sustainability tothe benefit of present and future generations.

The main objectives and implementation measures forachieving this goal are reflected in a number ofconceptual and policy documents - the National Strategyfor Sustainable Socio-economic Development ofBelarus for the period up to 2020, the State ForestryDevelopment Program for 2011–2015, etc.

The principles of sustainable forest management areset forth in the Forest Code. With their practical

Figure 4.6.1 Dynamics of introduction of saplingsin valuable wood species and rated felling

for primary forest use

52444339373634

25232325

9,38,98,687,77,37,2776,86,6

0

10

20

30

40

50

60

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Годы

ввод молодняков в категорию ценных древесныхнасаждений, тыс. гарасчетная лесосека по главному пользованиюлесом, млн м3

Introduction of saplings in valuable wood species,thousand haRated felling for primary forest use, mln m3

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implementation, Belarus' forests only providecontinuous forest use within the annual growth ofwoods, but also contributes to the sustainable socio-economic development of the country, ensuring itseconomic, energy, food and environmental security.

Through purposeful innovation, a transition is beingmade to modern forestry technology , includinglogging and wood processing. New avenues ofmultipurpose forest management have gainedprominence - bioenergy, hunting and ecotourism.Thus, under the State Program of InnovationDevelopment of Belarus for 2011–2015, in 2011 thestate "Schuchin Forest Enterprise" created a modernforest seed processing and storage facility; work isunderway to create segments of an automated distantforest fire monitoring and early detection system usingmodern means of surveillance.

To comply with international standards of sustainableforest management, the country conducts forestcertification in accordance with the requirements ofthe international scheme of the Forest StewardshipCouncil (FSC) and within the framework of the ForestCertification System of the National ComplianceVerification System of the Republic of Belarus,recognized by the pan-European Forest CertificationCouncil (PEFC). 52 forest enterprises are certifiedas meeting the requirements of the FSC, andaccording to the PEFC scheme the results are evenmore significant: 94 forest enterprises with an areaof 7.98 million hectares are covered (99% of the totalforest fund of the Ministry of Forestry).

According to the Program of Socio-economicDevelopment of Belarus for 2011–2015 and StateForestry Development Program for 2011–2015, thepriorities for effective use of forest resources inBelarus are as follows: development of the existingand creation of new export-oriented productionfacilities for deep processing of raw wood materials,manufacturing of products with high added value;widespread use of low-value raw wood material andtimber waste as boiler fuel to reduce the costs ofimport of non-renewable energy sources (gas, oil).

There are already more than 50 production facilitiesorganized at forest enterprises for processing low-value raw wood material and timber waste forproduction of wood chips, wood briquettes and pellets;more are to come. A number of export-oriented andimport substitution enterprises for deep processingof raw wood materials will be created in 2012–2015,including a bleached pulp plant at OJSC "SvetlogorskPulp and Paper Mill", 8 particleboard and fiberboardplants within the "Bellesbumprom" Concern, etc.

The main objectives of forestry development for theperiod up to 2015 are: improved productivity andquality of forests, development of forest stockinfrastructure, harmonization of the national forestproduce standards with European standards.

Provisions have been made for: introducing spacemethods for forest inventory-taking and promptevaluation of forest condition; modernization oflogging technologies based on widespread use ofmulti-purpose machines; creation of permanent seedorchards and special-purpose forest plantations,including for energy purposes; improvement of forestsfor recreation; significant expansion of internationalhunting and ecotourism.

Thus, the basic principles of "green" forest economyare reflected in the conceptual and policy documentson socio-economic development of Belarus in thenear and distant future. The main issue now is theirsuccessful implementation.

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DIRECTIONS AND PRINCIPLES OF TRANSITION TO A “GREEN” ECONOMY


DIRECTIONS AND PRINCIPLESOF TRANSITION TO A “GREEN” ECONOMY

5.1. Economic Policyand Instruments.The Role of the Statein the Transitionto a “Green” Economy

The main objectives of economic policy in thetransition to «green» principles are creating conditionsfor economic growth, enhancing welfare and healthwith the rational use of natural resources, preservingthe ecological balance and preventing imbalances inthe ecosystem. The draft law «On State IndicativePlanning in the Republic of Belarus”, drafted andcurrently undergoing its first reading in the NationalAssembly, should become the systematic basis forachieving this goal. It stipulates that a sustainabledevelopment strategy shall be developed and updatedevery five years at the national and local levels.

The economic policy of the state during the transitionto a «green» economy should be based on thefollowing approaches and principles:

equal treatment of economic, social andenvironmental issues;

transition to a low-carbon economy;

development and use of renewable energysources and new environmentally friendlymaterials as a priority;

creation of effective systems of industrial andconsumption waste management;

compliance with legislation on environmentalprotection, sanitation rules and regulations,environmental standards, in exercisingeconomic activity;

compliance with environmental protectionrequirements during the implementation ofeconomic reforms. This principle is particularlyrelevant in the process of privatizing stateproperty and in facilitating entrepreneurship;

focusing on finding a reasonable compromisein resolving the conflict between the need tocomply with environmental restrictions andrequirements on the one hand, and to stimulateeconomic activity on the other;

economic encouragement, by means of publiccredit and pricing instruments, of resource andenergy saving, innovations in science,engineering and technology, economy,education, and information technology;

wide use of economic instruments to cover thecosts associated with the minimization of harmto the environment resulting from economicactivities (environmental insurance, fines);

development of international cooperation inorder to preserve, protect and restore theintegrity of the Earth’s ecosystems.

Adherence to the principles of «green» economy willhelp to avoid over-exploitation of natural resources,and thereby meet the needs of present and futuregenerations for natural resources. For the purposeof shifting to a «green» economy, it would be

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necessary to create conditions for attractinginvestment in the coming years, including DFI, in suchkey sectors as agriculture, forestry, energy, fisheries,industry, housing and utilities, tourism and wastemanagement.

The principles of «green economy» suggest aneconomic policy which carries out reforms to thesubsidy system by phasing out subsidies from stateand local budgets in such areas as transport,construction, housing and utilities, agriculture, energyand gas supply. Modernization and regulation ofgovernment subsidies should encourage businessentities to introduce low-waste, energy-savingtechnologies, make prudent use of local and importednatural resources, primarily fuel and energy, improvethe quality of products and services, and developmarket relations in all sectors of the economy. Thepopulation should also get motivated to save water,gas and electricity, conduct separate collection ofmunicipal solid waste, preserve the housinginfrastructure and adjacent territory.

In the period up to 2020, it is expedient to extendpreferences for loans and depreciation allocations tobusinesses that provide a significant reduction in wasteproduction, wastewater discharges, and pollutantemissions, especially greenhouse gases, into theenvironment per unit of raw materials, productioncapacity, produced goods, energy production, workperformed, volume of service provided.

In the transition to a «green» economy it is expedientthat the following tools should be used:

education and training of the populationconsistent with the principles of sustainabledevelopment and environmental culture;

pricing corresponding to principles ofsustainable development, based on a flexiblecombination of free and controlled prices,abandonment of «harmful» subsidies;

valuation of natural resources, which shouldbe the basis for calculating the rates of tax onextraction (removal) of natural resources;

channeling public funds into infrastructurewhich corresponds to the principles of

sustainable development (public transport,renewable energy, energy-efficient buildings)and natural capital, to restore and (wherepossible) increase the volume of naturalcapital. The priority is to protect theenvironment. Given that over 20 years theannual cost of environmental protectionactivities ranged from 1% of GDP in 1990 to1.7% in 2000 and to 1.3% in 2009, by 2020this figure should increase to at least 2%. Inthe course of transition of the nationaleconomy to «green» principles, the structureof funds aimed at protection and rational usewill change: the share of spending onenvironmental protection from pollution bywaste, as well as conservation andreproduction of wild animals, will grow;

targeted government support of research anddevelopment related to creation ofenvironmentally friendly technologies.

Administrative legal methods should also be used toensure economic growth and prevent excessivedepletion of natural resources and destruction ofaquatic, wetland, forest and biological ecosystemsand natural landscapes. In the field of naturemanagement this entails: technical regulations andstandards, sanitary and hygienic rules andregulations, limits, environmental restrictions andrequirements, integrated environmental permits.

«Smart» nature management involves a review oftraditional measures of national wealth and naturalresources management. While in the «brown»economy, the wealth in natural resources of a countryis characterized by a system of positive indicators,the «green» economy stipulates, alongside thetraditional indicators, wider use of ratios and indicatorson resource consumption (nature intensity) forimproving resource efficiency, as well as on specificexponents (use of fresh water per one million ofindustrial produce or GDP, proportion of usefulmaterial in the volume of extracted minerals).

For the purpose of air protection, provision should bemade for: improving the system of standardizationand normalization of the load on the environment;economic incentives for business entities engaged

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in activities to reduce emissions of pollutants into theatmosphere; development of a system of paymentsfor greenhouse gas emissions; increases in the pricesof motor fuel in terms of vehicle pollutant emissionsfees. Belarus should use such economic instrumentsas air pollutants emissions trading, which haveallowed countries of North America and Europe tosignificantly reduce emissions of sulfur dioxide,nitrogen and greenhouse gases since the 1980s upto the present day.

Reduction of emissions from mobile sources inBelarus will be facilitated by

the coming into force on December 31, 2012 of thetechnical regulation «On the Requirements forAutomobile and Aviation Gasoline, Diesel and MarineFuels, Jet Fuel and Heating Oil» adopted within theCustoms Union.

Increasing the level of waste processing and bringingit to the level of European countries would require:

changes and additions to the regulationsgoverning the trans-boundary movement ofwaste;

increases in tariffs for the removal and disposalof municipal waste, recovery of the costs oforganizations providing public services;

termination of budget subsidies toorganizations that provide the public withservices related to the removal and disposalof municipal waste;

development of rules for organizing collectionof waste packaging, household appliances,rubber waste and hazardous waste (mercurythermometers, batteries, tires, mercury-containing lamps, expired drugs, etc.);

changes and additions to the regulations onlicensing and standardization in the field ofwaste management;

improvement of planning and monitoring ofmunicipal waste management by increasingthe participation of the Ministry of NaturalResources and Environment and its territorialagencies in the development and

implementation of activities in the field of wastemanagement within the state and regionalprograms for socio-economic development;creating an inventory of solid municipal waste(SMW), or the inclusion of SMW in the currentinventory of waste; use of new targetsdeveloped within the framework of forecastingand policy documents of socio-economicdevelopment of Belarus and its regions,including a general indicator of the cost ofproduction and energy resulting from use ofwaste;

development of a deposit-return system inmunicipal waste management, based on theeffective experience of European countries;

introduction of the principle of extendedproducer responsibility (EPR) for packagingmade of cardboard and paper, polymers, glassand metals, for electrical and electronicequipment (batteries, computers, householdappliances), automobiles, related materials andequipment (batteries, oil, tires), and medicines;

economic incentives for the collection andsorting of waste, production of products usinglocal recycled materials (preferential lendingrates, accelerated depreciation of equipmentused in the process of recycling; simplifiedprocedures for obtaining permission to engagein economic activity in this area).

In order to attract investment into the area ofmunicipal waste management, it is necessary toensure the introduction of public-private partnershipmechanisms in waste collecting, transporting,sorting and recycling, as well as provide additionalbenefits to investors for the implementation ofspecific investment projects.

The following measures are needed for saving energyin the field of water supply and for reducing publicspending on supplying suitable quality water to thepopulation and industries:

development and implementation ofadministrative and economic tools toencourage the abandonment of the use ofpotable water for household purposes,

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reduction in the volume of discharge ofinadequately treated waste water; increasedsanctions for violation of environmentallegislation in this area;

encouragement of large industrialorganizations and businesses to implementlow-water and water-free technologies byproviding loan preferences;

stricter drinking water standards for allcategories of water users;

increased tariffs for drinking water and, in thenext few years, terminating subsidies for thesupply of water to the population for thepurpose of water extraction, refining anddelivery cost recovery. The least sociallyprotected categories of people (disabled,pensioners) if necessary, should be grantedtargeted financial assistance.

To prevent discharge of inadequately treated sewageinto water bodies and streams, it is advisable thatfines are increased for violating environmental lawsin the field of protection and use of surface water,primarily for the unsatisfactory operation of treatmentfacilities.

In order to preserve biodiversity, protected areasshould be developed on the basis of an optimalcombination of budget financing, current economicand financial mechanisms, including investments, andextra-budgetary resources; there is a need to developeco-tourism and use the proceeds not only forcreation of tourist infrastructure, but also to preserverare and endangered species of wild animals andbirds.

To develop mineral deposits needed for the country’seconomy, the interested government agencies,companies and refiners need to actively attract foreigninvestment through the development of public-privatepartnerships and concession agreements.Concessionaires and foreign investors should begiven additional privileges and preferences as definedby the Presidential Decree «On Certain Issues ofInvestment Activities in Respect to MineralResources» of October 3, 2011# 442, and otherregulations.

5.2. Education for “Green”Economy

Issues associated with the transition of education toa «green» economy are generally formulated in theNational Action Plan for the Implementation of theUN Economic Commission for Europe (UNECE)Strategy on Education for Sustainable Developmentin the Republic of Belarus for 2010–2014 and sectoraleducation development programs. Priority is given tothe formation of a versatile and highly spiritualeducation for citizens responsible for their Ecohouse,their land and its management, concerned about thefate of their village, town, country and planet Earth.In this regard, the qualitative transformation of theeducation system is an important task.

The system designed for the transition of educationto a «green» economy covers all types of schools:pre-schools, secondary schools, specializedsecondary schools and universities.

The most common forms of «green» education in alltypes of educational institutions are environmentaleducation lessons in schools, high schools,associations and eco-clubs, as well as extra-curricularcourses.

Some experience in educating students for the «greeneconomy» has already been gained by pre-schoolinstitutions, carrying out full-fledged, age-appropriateeducation of children, compliant with the requirementsof environmental education. The RepublicanEcological Center for Children and Youth coordinatesthis work.

In the system of secondary education, the task ofshaping the ecological culture of students is beingaddressed through the inclusion in the curriculumof corresponding themes and topics that deepen andelaborate some aspects of environmental education.In January 2010, an educational-methodical complexentitled «Wild Nature of Belarus» was presented inBelarusian schools. It was presented asextracurricular activities for the 7th and 8th grades.With the support of the UN office in Belarus, a newproject called «Green School» was launched.

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Courses such as «Fundamentals of EnvironmentalProtection» and «Fundamentals of IndustrialEcology» were introduced in vocational schools, alongwith other specialized courses. In technical schools,matters of familiarizing with the issues of «green»economy are included in specific topics of specialsubjects and courses.

Within the system of higher education, courses in«Fundamentals of Ecology and EnvironmentalEconomics,» «Sectoral Ecology», «Living Safety,»«Radiation Safety» and other special coursescovering the issues of «green» economy have beenintroduced. Environmentalists are raised at BSUIR(specialization - economy). Similar professions withother specializations are offered at the BelarusianState University, Belarusian State EconomicUniversity, Belarusian National Technical University,Belarusian Agricultural and Technical University,and other institutions. For example, at ISEU namedafter A.D. Sakharov, environmental specialists aretrained with in-depth knowledge ofinformation technology under thespecialty «Information Systems andTechnology», with certification as«Software Engineer-Ecologist.» Manyinstitutions have created environ-mental («green») departments thatare raising trained environmentalspecialists. Serious attention is paidin Belarus to post-graduate environ-mental education; there are nationaltraining courses conducted at thestate education facility “National

Center for Advanced Training of Employees andSpecialists”.

The “State Museum of Nature and Environment ofthe Republic of Belarus” is operating. Education ofcitizens in the area of ??»green economy» is alsocompatible with the environmental education of the

population that is carried out by themedia, museums, ZOOs, botanicalgardens, libraries and communityorganizations. The largest protectedareas of Belarus are creatingawareness-raising centers that aremeant to work with different agegroups.

The main conditions for achievingthis goal are: further improvement ofthe regulatory and legislat iveframework on environmentaleducation, upbringing andawareness-raising; increased use of

foreign experience in environmental education;training and retraining of teachers for all levels ofbasic and secondary education on «green»economy; strengthening of the role of media andpublic organizations in view of the principles of«green» economy; developing a network ofeducational institutions of a new type: «green»schools, universities implementing educationalprograms for «green» economy, etc.; developmentof education quality indicators for «green «economyand creation of a monitoring system.

The objective of environmental education and awareness-raising is to create conditions enabling all citizens to gainenvironmental knowledge, shape environmental mindset in thesociety, including cultural and ethic principles and behavioralnorms that ensure sustainable development of the country.

National strategy of sustainablesocio-economic development of the Republic

of Belarus for the period until 2020.

Education of population in the field of environmental protectionand nature management is ensured by including educationalprograms of fundamental knowledge in the area ofenvironmental protection and nature management intoacademic and program documentation.

The law of the Republic of Belarus"About preservation of the environment", paragraph 75

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5.3. Science and Innovationfor SustainableDevelopment

Research and development are factors that stimulatedevelopment of a «green» economy. Energyconservation, agro-technology, environmentalmanagement, resource conservation, bio- andnanotechnology are recognized as priority areas ofscientific and technological activities in Belarus inaccordance with the Decree of the President of theRepublic of Belarus of July 22, 2010 ¹ 78.

The main tasks of the priority field of «Energy andEnergy Efficiency» are: ensuring the introduction ofatomic power into the energy system of the Republicof Belarus; creating a new trend in production oflighting products based on LEDs; developing andincreasing production of alternative fuels and energysources; purifying natural waters and condensatesused for power engineering needs.

In the field of renewable energy, hydroelectric powerplants with the a total yield of 102.1 MW will becommissioned in the period 2011–2015, the totalelectric power capacity of wind farms shall grow upto 460 MW, and the capacity of other energy sources(vegetative waste, solar, municipal waste, petroleumcoke, etc.) will increase to 863.5 thousand tons ofeq. fuel (provisional). Use of new advanced

technologies in electricity production will reduce thespecific fuel consumption for electricity generation by27.4 g of eq. fuel by 2016.

In the area of «Agro-Industrial Technology andProduction», modern means of environmentally safeplant protection using local raw materials are beingdeveloped, including methods to combat pests,environmentally friendly techniques for productionand the use of complex biomineral fertilizer, the latestmethods of selection and breeding of farm animals,embryo transfer technology and DNA-technology,environmentally safe products and biotechnology forpreparation and preservation of fodder resources forlivestock.

The main objective in the field of «Industrial andConstruction Technologies and Production» is theimplementation of the concept of conservation ofenergy and resources in creating new machinery andconstructing and operating residential and industrialpremises. New models of vehicles are beingdeveloped which correspond to internationalenvironmental standards Euro 4 and Euro 5, as wellas diesel engines adapted to run on biofuels, miningtrucks which meet Tier 3 (Stage 3A) requirementsfor the release of toxic substances, miningtransloaders with two-stage exhaust gases treatmentsystems, energy-efficient housing projects, energy-saving environmentally friendly technologies for a newgeneration of domestic construction materials.

In «Chemical Technology, Nanotechnology andBiotechnology», biopharmaceuticals and technologiesare being developed for agriculture, industry, healthand environmental protection. Among the mainobjectives in this field are the organization andincrease of production of low-tonnage chemistry(drugs, food additives, preservatives, dyes,pesticides, additives to oils and fuels) with maximumuse of traditional chemical intermediates anddomestic raw materials.

In «Environmental Management, ResourceConservation and Protection from EmergencySituations,» the issues of geopotential managementand environmental quality preservation are treated

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as the pressing challenges of today. There areprovisions for the development of new technologiesand facilities for sustainable use of natural resources;standards for sustainable forest management havebeen developed; methodological approaches toenvironmental protection, flora and fauna preservationhave been defined.

The results of the most promising scientificdevelopments have been introduced into the realeconomy with the support of the state, primarilythrough the mechanism of the State Program ofInnovative Development, which was first drawn up in2007. Currently a new program for the period 2011–2015 is being implemented.

The state’s efforts are aimed at applying an integratedapproach to promote high-tech R & D, within whichthe innovation infrastructure facilities (research andproduction centers, industrial parks, etc.) implementsthe whole range of activities - from the scientific idea

of development to its implementation, including forthe area of «green» economy.

Currently, there are a number of innovationinfrastructure facilities: research and technologyparks (11), research and production centers(theoretical and practical, 40), business incubators(9), etc. The National Academy of Sciences of Belarustook the path of creating science and practical centers(for materials science, biological resources, food,agriculture, agricultural mechanization, etc.). Themain purpose of their operation is to enhance theefficiency of research, accelerating the introductionof scientific research into industry to intensify theinnovative development of the economy.

A High-Tech Park has been operating in Belarus since2005. In this unique enabling environment for IT-business development, unprecedented tax benefitsare combined with the presence of well-trainedprofessionals.


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THE POSITION OF THE REPUBLIC OFBELARUS IN REGARD TO "GREEN"ECONOMY

The Republic of Belarus considers the "greeneconomy" to be an important instrument forsustainable development and environmental safety,and intends to take sustained measures to implement"green" (ecological) principles in the nationaleconomy.

In order to create favorable conditions for an effectivetransition to the environmental economy model,Belarus supports an approach which:

reinforces the central role of the environmentand the global commitment to sustainabledevelopment on the international agenda;

contributes to sustainable development bystrengthening the balance of its components(economic, social and environmental);

akes into account the principle of shared butdifferentiated responsibilities and differentpaces of introduction of "green" principles,

depending on the level of socio-economicdevelopment of states;

is consistent with obligations underinternational treaties ratified by the Republicof Belarus;

contributes to increasing availability ofenvironmental "green" technologies, introducesbest available techniques for integratedenvironment pollution prevention and control,opens up new market opportunities;

does not have grounds that allow for using theconcept of "green economy" as an instrumentof discrimination and protectionism;

contributes to building international cooperationwith countries, corresponding international andregional organizations, and financial institutionsin order to provide Belarus with financial,technical, consultative and other types ofassistance to develop and implement "green"technologies.


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Óñòîé÷èâîå ðàçâèòèå Ðåñïóáëèêè Áåëàðóñüíà ïðèíöèïàõ «çåëåíîé» ýêîíîìèêè

Íàó÷íîå èçäàíèå

Ðåäàêòîð À.Ì. ÑòðîíãèíàÄèçàéí, âåðñòêà Þ.Â. Êîëåí÷èö, Å.Ý. Äðîáûøåâñêàÿ

Êîððåêòîð Ò.È. Êàêøèíñêàÿ

Íàöèîíàëüíîå ñîîáùåíèå

Ïîäïèñàíî â ïå÷àòü 22.06. 2012. Ôîðìàò 60õ841/8. Áóìàãà îôñåòíàÿ.Ïå÷àòü îôñåòíàÿ.Óñë. ïå÷. ë. 6,04. Ó÷.-èçä. ë. 5.79. Òèðàæ 99 ýêç. Çàê. 61.

Òèðàæ 20 ýêç. Çàêàç 2ï.Èçäàòåëü è ïîëèãðàôè÷åñêîå èñïîëíåíèå: ÃÍÓ «ÍÈÝÈ Ìèíèñòåðñòâà ýêîíîìèêè Ðåñïóáëèêè Áåëàðóñü».

ËÈ ¹ 02330/0549413 îò 08. 04. 2009., ËÏ ¹ 02330/0494177 îò 03. 04. 2009.Óë. Ñëàâèíñêîãî, 1, êîðï. 1, 220086, ã. Ìèíñê.

Òåë./ôàêñ (017) 267-02-78

Îòâåòñòâåííûé çà âûïóñê Ä.À. ×èæ

Íà àíãëèéñêîì ÿçûêå

Sustainable Development of the Republic of BelarusBased on “Green” Economy Principles

National Report

Style editors (Russian): À.Ì. Strongina.Computer layout and design: Mr. Yury Kolenchits, E.A. Drobyshevskaya

Proofreader: T.I. Kakshytskaya

Production Editor: Dmitry Chizsh

Signed into print 18.06. 2012. Page size 60õ841/8.Standard print pages: 6.04

Standard publisher pages: 5.79Print run: 99 copies.

Printer and publisher: Institute of Economic Research under the Ministry of Economy of Republic of BelarusAddress: Str. Slavinskogo 1. Building 1. 220086. Minsk. Tel./Fax (017) 267-64-40

Publishing and printing licence number: ËÈ ¹ 02330/0549413 of 08. 04. 2009, ËÏ ¹ 02330/0494177 of 03. 04. 2009.

Documents

SUSTAINABLE DEVELOPMENT OF THE REPUBLIC OF BELARUS … · On the threshold of the UN Sustainable Development Conference "Rio+20", which is to assess the achievements of humanity in