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Table 5-3. UNEP’s five key types of SCP action UNEP’s five key types of SCP actionSupply-side key actionsDemand-side key actionsReducing material/energy intensity of currenteconomic activities and reducing emissions andwaste from extraction, production,consumption and disposal.Applying life cycle thinking, which considers theimpacts from all life-cycle stages of theproduction and consumption process.Promoting a shift of consumption patterns towards groups of goods andservices with lower energy and material intensity and recyclable wastestreams without compromising quality of life.Incentivizing sustainable consumption: sharing best practices, mostefficient approaches that could be scaled up to reach targetedconsumer groups.Guarding against the rebound effect, where efficiency gains arecancelled out by resulting increases in consumption.Box 5-8. National cleaner production centres – catalysts to scale and institutionalise resource efficiencyBeginning in the 1990s, UNEP and UNIDO have promoted sustainable industrial production in developing and transitioneconomies through the Resource Efficiency and Cleaner Production (RECP) Programme and an associate network (RECPNet).The promotion of SCP practices within small- and medium-sized enterprises (SMEs) has been one of the main targets of thisprogramme and network. They have facilitated the establishment and strengthening of technical partners in developingcountries and emerging economies, notably the National Cleaner Production Centres (NCPCs), which offer such services as: i)Provision of technical assistance to enterprises, with a specific focus on SMEs, for the adoption of more resource efficientand cleaner production practices; ii) Provision of policy advice to government counterparts with the aim of strengtheningthe enabling conditions for uptake of SCP; iii) Identification, development and transfer of environmentally soundtechnologies (ESTs); and iv) Awareness-raising among different stakeholders of the opportunities and benefits associatedwith resource efficient, sustainable consumption and production practices. At present, there are more than 50 developingcountries and emerging economies with established NCPCs. These NCPCs have diversified their offer of services, with theobjective of strengthening the sustainability of the entire value chain in which SMEs operate. Over 20 years of operation, theprogramme and network have fostered, among supported enterprises, a reduction in energy consumption by 25%, areduction in water consumption by 40%, and a reduction in waste generation by 25%.5.5. New industrial policies for inclusive and sustainabledevelopment – policy alignment, trade-offmanagement and win-win solutions5.5.1. Industrial policy challengesThe breadth and depth of structural transformations thatcountries will require for meeting the SDGs pose newchallenges to industrial policy making 467 . Inclusive andsustainable development necessitates stronger integrationof economic, social and environmental objectives.Production and consumption patterns are an importantconnective point among these dimensions. Throughfundamental changes to production systems, employmentpatterns and technologies, as well as accompanyingbehavioural changes influencing consumption, 468 countrieshave the opportunity to chart new paths to industrial andeconomic development that are more resource and energyefficient and less environmentally damaging.To capture opportunities offered by structural change 469and to manage the potential trade-offs, new packages ofindustrial policy measures will have to be experimentedwith and supported over time.Industrial policymaking is a complex process as it entails themanagement of packages of measures. The design,implementation and enforcement of these measures alsorequire the involvement of different government levels,from the local to the regional to the national and, in certaincircumstances, supranational level 470 . Policies must also beconsistent with international trade and other obligations.Industrial policy areas can be used by governments in moreor less selective ways to enable or steer changes in: firms –their capabilities, innovation activities and production99