Manual on the Development of Cleaner Production Policies ... - Unido
Manual on the Development of Cleaner Production Policies ... - Unido
Manual on the Development of Cleaner Production Policies ... - Unido
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DEVELOPMENT OF CP POLICY<br />
MODULE 4: POLICY TOOLS AND INSTRUMENTS<br />
Included are subsidies in <strong>the</strong> sectors <strong>of</strong> transport, energy and agriculture, which may have a<br />
distorti<strong>on</strong>al effect from an envir<strong>on</strong>mental policy point <strong>of</strong> view. For instance, <strong>the</strong> cost <strong>of</strong> water and<br />
electricity can be subsidized by <strong>the</strong> Government, to improve <strong>the</strong> competitiveness <strong>of</strong> local industry.<br />
Without crop supports, farmers would be less likely to overuse fertilizers and pesticides, a major<br />
source <strong>of</strong> water polluti<strong>on</strong>. Without road transport subsidies, traffic c<strong>on</strong>gesti<strong>on</strong>, urban air polluti<strong>on</strong> and<br />
carb<strong>on</strong> dioxide emissi<strong>on</strong>s could be significantly reduced worldwide. And without energy subsidies,<br />
energy prices would rise, encouraging <strong>the</strong> use <strong>of</strong> more efficient vehicles and industrial equipment and<br />
reducing pollutant emissi<strong>on</strong>s.<br />
In some countries, <strong>the</strong>re are also subsidies for <strong>the</strong> import <strong>of</strong> sec<strong>on</strong>d-hand equipment, which may<br />
encourage <strong>the</strong> purchase <strong>of</strong> outdated and inefficient technologies.<br />
Excluded from this category are envir<strong>on</strong>mental subsidies from state or municipal budgets, or<br />
envir<strong>on</strong>mental funds, which can take <strong>the</strong> form <strong>of</strong> grants, s<strong>of</strong>t loans, interest subsidies, etc.<br />
EXAMPLE<br />
Subsidies worldwide<br />
Subsidies are widespread and pervasive in virtually all countries, both developing and industrialized;<br />
worldwide, governments are estimated to spend more than US$ 700,000 milli<strong>on</strong> a year subsidizing<br />
envir<strong>on</strong>mentally-unsound practices in <strong>the</strong> use <strong>of</strong> water, agriculture, energy and road transport. The<br />
largest subsidy is agricultural support in OECD countries. About US$ 335,000 milli<strong>on</strong> is spent<br />
annually <strong>on</strong> subsidizing farm producti<strong>on</strong> and farm incomes, a sum equivalent to about US$ 380 per<br />
capita or US$ 16,000 per full-time farmer.<br />
Ano<strong>the</strong>r example is support for energy producti<strong>on</strong>. Global energy subsidies currently total US$<br />
200,000 milli<strong>on</strong> a year. A comm<strong>on</strong> feature <strong>of</strong> global energy policy is that more than 80 per cent <strong>of</strong> <strong>the</strong><br />
subsidies c<strong>on</strong>cern fossil fuels, <strong>the</strong> most polluting energy sources.<br />
Some subsidies established l<strong>on</strong>g ago for sound ec<strong>on</strong>omic or social reas<strong>on</strong>s no l<strong>on</strong>ger serve <strong>the</strong>ir<br />
original purpose. Subsidies can take many forms and are <strong>of</strong>ten hidden so that even <strong>the</strong> beneficiaries<br />
may be unaware <strong>of</strong> <strong>the</strong>ir adverse envir<strong>on</strong>mental impact.<br />
Cheap resources and <strong>the</strong> use <strong>of</strong> low-cost, inefficient technologies have a negative impact <strong>on</strong> <strong>the</strong><br />
adopti<strong>on</strong> <strong>of</strong> <strong>Cleaner</strong> Producti<strong>on</strong> and should be addressed. Nicaragua is a good example <strong>of</strong> how a<br />
phase-out <strong>of</strong> energy producti<strong>on</strong> subsidies leading to significantly higher kW price resulted in increased<br />
demand for CP and energy efficiency measures in industry.<br />
Green procurement guidelines<br />
Government agencies and public instituti<strong>on</strong>s are major purchasers <strong>of</strong> a wide variety <strong>of</strong> goods and<br />
services. Some estimate that up to 20 per cent <strong>of</strong> purchases in any country involve <strong>the</strong> use <strong>of</strong> public<br />
funding. As a result, specificati<strong>on</strong>s for government purchasing tend to have a significant effect <strong>on</strong> how<br />
suppliers design <strong>the</strong>ir products and <strong>the</strong>ir characteristics. The Government has an opportunity to<br />
influence its suppliers towards <strong>the</strong> use <strong>of</strong> technologies for <strong>Cleaner</strong> Producti<strong>on</strong> and products by means<br />
<strong>of</strong> its purchasing behaviour, specificati<strong>on</strong>s for goods and a simple statement declaring that <strong>the</strong><br />
promoti<strong>on</strong> <strong>of</strong> <strong>Cleaner</strong> Producti<strong>on</strong> and products is government policy.<br />
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