Daily report for 18 May 1994

FINANCIAL RESOURCES AND MECHANISMS: Savitti Kunadi openedWorking Group I's consideration of Item 4, "Financial resources andmechanisms" (E/CN.17/1994/10). Kenneth Ruffing of the Secretariatintroduced the documentation on financial resources. Dr. LinSee-Yan reported on the ad hoc intersessional working groupon finance. Discussion focused on access to and mobilization offinances and innovative financing. He asked the delegates to:strengthen the capacity of international financial institutions;draw up a matrix of the optimal mix of instruments for each of thesectoral clusters; and allow the working group to continue itswork. Japan reported on the preparatory meeting on finance, whichit co-sponsored with Malaysia. The GEF representative reported onthe progress of the GEF in: evaluation of its pilot phase;restructuring; and replenishment. He noted that the Council willhold its first meeting from 12-14 July 1994, in Washington, DC. TheWorld Bank reviewed its role in funding Agenda 21 implementation,noting that there has been a shift from borrowing for industrialprojects to borrowing for environmental projects.

Financial Commitments: The G-77 and China expressed concernthat while developing countries joined the global partnership forsustainable development on the explicit understanding thatadditional resources would be provided, this aid has not beenforthcoming. Japan noted this frustration, but commented that ithas tried to keep funding high. The Nordic countries called forrenewed efforts to close the gap between the goal of 0.7% GNP andpresent levels of aid. France noted that it hopes to reach thisgoal by 2000. Korea recognized the need for ODA, and announced thatit will contribute $5.6 million over two years to the GEF.

More Efficient and Prioritized Aid: The G-77 and China areconcerned that the call for reordering of priorities or greaterefficiency in use of aid are attempts to divert attention from theprovision of aid. The EU, the US and Australia mentioned theimportance of increased effectiveness in the use of aid. The EU,the US and the Nordic countries suggested prioritizing aid towardsthe least developed countries. The Nordics also noted that a stresson effectiveness does not take away from the importance of thevolume of aid. The EU suggested that reduced military expenditureswould free domestic resources.Germany stated that increased publicand private savings are indispensable resources for development.Germany and the UK called for sound pricing policies and removal ofsubsidies.

Matrix of Policies: The Nordic nations support thedevelopment of a matrix of options for financing sectoral issues.Canada suggested that efforts to develop a matrix should be made inthe national planning process.

GEF: Japan suggested the GEF play a more important role asthe financial mechanism to fund Agenda 21 activities. Korea hopesthat transparency and democracy in decision making at the GEF willimprove. Hungary noted that regional and subregional banks are alsoimportant.

Trade: The EU noted the benefits expected from thecompletion of the Uruguay Round. Colombia stated that trade is akey element to achieve the objectives of sustainable development.The G-77 called for enhanced access to markets and better terms oftrade. India noted that trade liberalization and other measureswill take time and more immediate concerns should be addressedhere.

Foreign Direct Investment (FDI): The EU noted that FDI flowsare at record levels, due in part to the increased attractivenessof developing countries for investment. Morocco noted that Africannations are not among the significant recipients. Sri Lanka alsovoiced concern that the ability to attract investment variesbetween sectors and among countries.

Debt Relief and Swaps: Japan thinks debt relief is a secondbest solution, and that it is better to encourage self-helpefforts. The UK pointed out that banks will be less willing to lendin the future if they are forced to cancel debt. Poland hasestablished a fund for the management of debt swaps and has foundthem to be an effective tool for environmental protection.

Innovative Financing: Tradeable permits, emission taxes andair travel taxes were among the innovative methods discussed.Poland informed the delegates about its National Fund forEnvironmental Protection and Water Management. Brazil joined othersin noting the need to examine new funding mechanisms closely. Egyptannounced that it was tabling a proposal for a panel of experts tostudy innovative financing. Australia pointed out the importance ofcommunity-based, participatory initiatives. Pakistan proposedemission taxes be levied on non-renewable resources. Japan agreedthat this method is promising in the long-run. Venezuela cautionedthat the burden of implementation should not fall on energyproducing nations.

Consumption and Production Patterns: Korea suggested usingeconomic instruments to change these patterns. Sri Lanka suggestedusing the media to change priorities. Brazil suggested that thisissue be added permanently to the agenda of the working group onfinance, and noted that resources saved by developed countriescould be channeled into aid for developing countries.

Intersessional Work: Korea believes that increasedparticipation of experts in the <W2I>ad hoc<D> intersessionalworking group on finance is important. Morocco recommended thecontinuation of this group. Japan, the US and France found expertor informal seminars beneficial. Colombia said financeshould be discussed within the context of the CSD.Morocco expressed concern that developing countries cannotafford to attend all informal seminars.

WORKING GROUP I

FINANCIAL RESOURCES AND MECHANISMS: Savitti Kunadi openedWorking Group I's consideration of Item 4, "Financial resources andmechanisms" (E/CN.17/1994/10). Kenneth Ruffing of the Secretariatintroduced the documentation on financial resources. Dr. LinSee-Yan reported on the ad hoc intersessional working groupon finance. Discussion focused on access to and mobilization offinances and innovative financing. He asked the delegates to:strengthen the capacity of international financial institutions;draw up a matrix of the optimal mix of instruments for each of thesectoral clusters; and allow the working group to continue itswork. Japan reported on the preparatory meeting on finance, whichit co-sponsored with Malaysia. The GEF representative reported onthe progress of the GEF in: evaluation of its pilot phase;restructuring; and replenishment. He noted that the Council willhold its first meeting from 12-14 July 1994, in Washington, DC. TheWorld Bank reviewed its role in funding Agenda 21 implementation,noting that there has been a shift from borrowing for industrialprojects to borrowing for environmental projects.

Financial Commitments: The G-77 and China expressed concernthat while developing countries joined the global partnership forsustainable development on the explicit understanding thatadditional resources would be provided, this aid has not beenforthcoming. Japan noted this frustration, but commented that ithas tried to keep funding high. The Nordic countries called forrenewed efforts to close the gap between the goal of 0.7% GNP andpresent levels of aid. France noted that it hopes to reach thisgoal by 2000. Korea recognized the need for ODA, and announced thatit will contribute $5.6 million over two years to the GEF.

More Efficient and Prioritized Aid: The G-77 and China areconcerned that the call for reordering of priorities or greaterefficiency in use of aid are attempts to divert attention from theprovision of aid. The EU, the US and Australia mentioned theimportance of increased effectiveness in the use of aid. The EU,the US and the Nordic countries suggested prioritizing aid towardsthe least developed countries. The Nordics also noted that a stresson effectiveness does not take away from the importance of thevolume of aid. The EU suggested that reduced military expenditureswould free domestic resources.Germany stated that increased publicand private savings are indispensable resources for development.Germany and the UK called for sound pricing policies and removal ofsubsidies.

Matrix of Policies: The Nordic nations support thedevelopment of a matrix of options for financing sectoral issues.Canada suggested that efforts to develop a matrix should be made inthe national planning process.

GEF: Japan suggested the GEF play a more important role asthe financial mechanism to fund Agenda 21 activities. Korea hopesthat transparency and democracy in decision making at the GEF willimprove. Hungary noted that regional and subregional banks are alsoimportant.

Trade: The EU noted the benefits expected from thecompletion of the Uruguay Round. Colombia stated that trade is akey element to achieve the objectives of sustainable development.The G-77 called for enhanced access to markets and better terms oftrade. India noted that trade liberalization and other measureswill take time and more immediate concerns should be addressedhere.

Foreign Direct Investment (FDI): The EU noted that FDI flowsare at record levels, due in part to the increased attractivenessof developing countries for investment. Morocco noted that Africannations are not among the significant recipients. Sri Lanka alsovoiced concern that the ability to attract investment variesbetween sectors and among countries.

Debt Relief and Swaps: Japan thinks debt relief is a secondbest solution, and that it is better to encourage self-helpefforts. The UK pointed out that banks will be less willing to lendin the future if they are forced to cancel debt. Poland hasestablished a fund for the management of debt swaps and has foundthem to be an effective tool for environmental protection.

Innovative Financing: Tradeable permits, emission taxes andair travel taxes were among the innovative methods discussed.Poland informed the delegates about its National Fund forEnvironmental Protection and Water Management. Brazil joined othersin noting the need to examine new funding mechanisms closely. Egyptannounced that it was tabling a proposal for a panel of experts tostudy innovative financing. Australia pointed out the importance ofcommunity-based, participatory initiatives. Pakistan proposedemission taxes be levied on non-renewable resources. Japan agreedthat this method is promising in the long-run. Venezuela cautionedthat the burden of implementation should not fall on energyproducing nations.

Consumption and Production Patterns: Korea suggested usingeconomic instruments to change these patterns. Sri Lanka suggestedusing the media to change priorities. Brazil suggested that thisissue be added permanently to the agenda of the working group onfinance, and noted that resources saved by developed countriescould be channeled into aid for developing countries.

Intersessional Work: Korea believes that increasedparticipation of experts in the <W2I>ad hoc<D> intersessionalworking group on finance is important. Morocco recommended thecontinuation of this group. Japan, the US and France found expertor informal seminars beneficial. Colombia said financeshould be discussed within the context of the CSD.Morocco expressed concern that developing countries cannotafford to attend all informal seminars.

WORKING GROUP II

Maciej Nowicki opened Working Group II's discussion on health,human settlements and freshwater (Item 6(a)).

HEALTH: Lowell Flanders from the Secretariat introduced the twodocuments: the report of the Secretary-General, "Progress inprotecting and promoting human health" (E/CN.17/1994/3); and theTask Manager's report, "Background Paper on Health, the Environmentand Sustainable Development." Dr. Wilfred Kreisel introduced theTask Manager's report which was prepared by WHO in closecooperation with partner agencies. He noted that while notexplicitly addressed, all environmental threats are about health.

There was overwhelming support for the two reports and,accordingly, there was general consensus on the recommendations andconclusions they outlined. Consequently, the majority ofinterventions were in support of these reports. Many delegatesapplauded: the emphasis on prevention measures; the fourbroad-based areas of health reform identified in the Task Manager'sreport; and the cooperation between agencies in studying healthissues. China, Canada, India, Pakistan and Sri Lanka, among others,strongly supported the special attention given to more vulnerablegroups, such as women and children. The EU identified HIV and drugvictims as an additional vulnerable group and, likewise, Australiaadded indigenous peoples. Sri Lanka requested that more emphasis begiven to the education of people in developing countries, citingcases of ignorance about chemicals and pesticides. Pakistanchallenged the need for State-sponsored intersessional meetingswhen existing international organizations could host such meetings.China, India and Pakistan were among several developing countriesthat requested greater financial assistance and technology transferto improve national health care.

HUMAN SETTLEMENTS: The Secretariat presented the two reportsrelevant to this discussion: the report of the Secretary-General,"Assessment of progress achieved in promoting sustainable humansettlement development" (E/CN.17/1994/5), and the "Task Manager'sReport on Promoting Sustainable Human Settlement Development andSolid Waste Management and Sewage-related Issues," prepared byUNHCS (Habitat). Habitat's Mark Hildebrand presented an overview ofthe report. There was substantial support for the two reports andtheir recommendations and conclusions.

UNICEF, India, the Nordic countries, Australia, Kenya and severalNGOs gave broad support to strengthening local authorities andcommunity-based organizations. Germany noted the special challengeof implementing Chapter 7 of Agenda 21: on one hand, humansettlement issues must be addressed for global stability, but, onthe other hand, they can only be addressed at the national andlocal levels. Many countries applauded the cooperation amongagencies in addressing these issues and urged the CSD to continuethis approach. Among others, Sri Lanka, the Nordic countries andthe Netherlands gave considerable support to the preparatoryprocess for Habitat II. Several countries noted that this issue isas significant for the North as it is for the South and agreed thatfocus should be placed on the linkage between employment andhousing. Financing and technology transfer were mentioned byseveral countries: Sri Lanka requested research in reducing housingcosts; India suggested that the two working groups should addressthe issues of finance and technology together; UNIDO mentioned theimportance of technology transfer; and the Netherlands noted thatsustainable housing and infrastructure can save energy, improvehealth and save costs.

FRESHWATER RESOURCES: Discussion began with the introductionof: the Secretary-General's report (E/CN.17/1994/4); theinter-agency Task Managers report, presented by the FAO; the reportof the Netherlands Conference on Drinking Water and EnvironmentalSanitation; and the roundtable on water and health inunderprivileged areas, held in Sophia Antipolis, France.

The EU noted that freshwater resources are threatened by explosiveurban growth, expanding populations, and increased agriculturaluse. Denmark, on behalf of the Nordic countries, mentioned thethreat to groundwater resources from pesticides and agro-chemicalsand the effect of hydropower on water resources. Belgium noted thatstrong conflicts are to be expected between expanded, irrigatedagriculture use and principles of conservation.

The EU and UNICEF noted that lack of freshwater resources leads todisease, which kills 6,000 children per day. UNICEF also stressedthe need for greater emphasis on sanitation and hygiene education.

The EU, Australia, and Tunisia advocated comprehensive, integratedmanagement of freshwater resources. Pakistan and Bangladeshstressed the need for regional and sub-regional approaches tofreshwater management. Australia said that water is not only theresponsibility of central or local governments but the sharedresponsibility of all stakeholders.

Germany, the Nordics and Pakistan called for greater capacitybuilding efforts. Egypt called for a concrete, practical andimplementable programme. Tunisia called for better demandmanagement, standardization, appraisal of water resources, andawareness of resource scarcity.

The Nordic countries called for a global water assessment. Pakistansuggested creation of a fund to identify, develop and sharetechnology. The World Food Programme noted its role in relief andfood aid and urged delegates to stress the need for promptresponses to disasters.

IN THE CORRIDORS

In the report of the Secretary-General on cross-sectoral issues(E/CN.17/1994/2), it is suggested that the CSD may want to play asubstantial role in the dialogue on trade and environment. Aconsensus appears to be building in the corridors, however, thatthe CSD may not be the proper forum. Some developed countries seemto think that UNCTAD, UNEP and the WTO, especially its Committee onTrade and Environment, are the best places to address this issue.Members of the G-77 seem to think that the CSD should annuallyreview developments in this area, but not necessarily be the focal point for analysis and action. Some NGOs, however, prefer the CSDover the WTO. They argue that that the CSD would consider tradeunder the sustainable development umbrella, whereas the WTO'sprimary focus is trade. This issue will move out of the corridorsand into the conference room on Friday when a draft decision isexpected to be circulated.

THINGS TO LOOK FOR TODAY

WORKING GROUP I: Today Working Group I will consider AgendaItem 5,"Education, science, transfer of environmentally soundtechnologies, cooperation and capacity building."

WORKING GROUP II: Working Group II will conclude itsconsideration of freshwater resources and then turn to Agenda Item6(b), "Toxic chemicals and hazardous wastes."

OTHER MEETINGS: There is a panel discussion on freshwaterresources from 1:00 - 2:30 pm in Conference Room 4. Austria hostsa briefing on "Sustainable Development and International Law," at1:15 pm in Conference Room A. The US hosts two meetings today: apresentation on municipal financing of urban environmental infrastructure from 1:00 - 2:00 pm and a presentation on short-termenvironmental training courses from 2:00 - 2:45 pm. Both meetingsare in Conference Room 1.

NGO BRIEFING: Everyone is invited to a briefing on "TheMilitary's Impact on the Environment" with Amb. Rolf Ekeus (UNSpecial Committee on Iraq) from 2:00 - 3:00 pm in Conference RoomE.

WORLD CONGRESS ON URBAN GROWTH AND ENVIRONMENT: Lord Jenkinwill give a presentation on this upcoming meeting in the UK at 6:00pm in Room 4.