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This article explores the market-based opportunities in East Asia, focusing on the concepts of green growth, green economy, and green development. It discusses the role of regulation, supply/demand factors, incentives, knowledge/organization, and cost internalization in sustainability markets. The article also emphasizes the need for a framework that promotes market-driven action beyond compliance and penalizes unsustainable practices while opening up new economic opportunities. It highlights market shifts in supply and demand and the importance of incentives, knowledge, organization, and cost internalization. The article concludes by providing examples of market-based approaches in various sectors such as marine aquarium certification, coffee certification, maritime shipping, fish health and safety certification, organic food certification, and oil palm certification. It also discusses the significance of low-carbon economy, green growth, and development in East Asia. The article acknowledges that while progress has been slow and inconsistent, the opportunities for market-based approaches have never been greater.
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Market-Based Opportunities in East Asia Arthur J. Hanson IISD
‘Green’ Is In… • Green Growth • Green Economy • Green Development • GREEN MARKETS
‘Sustainability’Markets Depend on… • Regulation • Supply/Demand Factors • Incentives • Knowledge/Organization • Cost Internalization
Regulation Should… • Provide FRAMEWORK promoting market-driven action beyond compliance • Penalize UNSUSTAINABLE PRACTICES • Open NEW ECONOMIC OPPORTUNITY
Market Shifts - Supply • Scarcity • Substitution • Technology Advances • Acceptable/Good Practices • New Models
Market Shifts - Demand • Wealth/Consumption Growth • Sophisticated Tastes (Travel, Food, Leisure) • Safety, Health, Environment • Global & Regional “Watches” • New Factors (Low Carbon, Biodiversity, Working Conditions, etc.)
Incentives… • Increased Access to Markets • Eco-compensation • Price Premium/ Government Procurement • Fiscal Policies/Subsidy & Tax Shifts/R&D Investment
Knowledge… • Intervention Points in Market Supply Chains • Understand Pricing Dynamics in Real Time • Technology Options • Capacity Development
Organization… • CSR – Corporate Social Responsibility • CBD – Community-based Development • Consumer Awareness • NGOs • Marketing & Self-regulating Bodies
Cost Internalization… • ‘Triple Bottom Line’ • Address Market Inefficiencies – Scale, Vertical Integration, etc. • Create New Products, Processes & Services • Turn Environmental Problems into Opportunities
Business Case • Enabling Framework • Sustained Supply & Demand Financial Sector, Enterprises & Associations Government Suppliers & Consumers Key Needs…
Marine Aquarium Council CertificationPartnerships The Conservation and Community Investment Forumthat collaborates with MAC in South East Asia to design and finance conservation solutions. Reef Check that has developed methods to assess and monitor the health of coral reefs and aquarium fish and coral stocks in collection areas Terangi, the Indonesia Coral Reef Foundation demonstrates and prepares collectors and their communities for MAC certification UNEP’s World Conservation Monitoring Centrealong with the MAC has developed an international database to provide credible information on marine ornamental trade. - CopperWiki
Coral Reef Tourism & Recreation - Philippines • Sust. Fisheries USD 620 • Coastal Protection 326 • Tourism & Recreation 108 • Willingness to Pay 10 TOTAL – USD 1, 064 million http://siteresources.worldbank.org/INTPHILIPPINES/Resources/PEM05-ch1.pdf
Technology, Certification of Timor Leste Coffee “In 2009, about 67,000 households grew coffee in Timor-Leste…with improved technology for coffee farmers, gross margins could increase by an average of about $500/ha from only $120/ha.” - World Bank (2010)
Maritime Shipping • CKYH Green Alliance Partners – COSCO, K-Line, Yang Ming, Hanjin Shipping • ‘Eco-steaming’, Super-slow • ‘Cold ironing technology’ • ‘Nano-emulsion Fuel System’ • Energy reduction in container ports - Bunkerworld May/June 2010 p24
Fish Health & Safety Certification • HACCP – USA • Japan – Traceability & Direct Involvement of Retailers • Europe – Shrimp Ban http://siteresources.worldbank.org/INTRANETTRADE/Resources/Topics/Standards/JapanCountrySurveyF.pdf
China Organic Food Certification • 2002 China Green Food Development Center • 2005 National Standards & Certification, Uniform Logo • Int’l Cooperation, NGOs http://www.wilsoncenter.org/topics/docs/going_organic_dec07.pdf
Oil Palm Certification • Round Table Sust. Palm Oil (RSPO) WWF, Industry, Stakeholders • Certification, trading, traceability • Indonesian Sustainable Palm Oil (ISPO Standard) Coming Soon • NGO Campaigns against Food Companies has created change
Low Carbon Economy, Green Growth & Dev. • South Korea, China, Indonesia, etc. • Significance to Coral Triangle for possible carbon credits, eco-compensation • Renewable Technologies Transfer of Experience
Conclusions • No Shortage of Examples • Generally Slow Progress • Inconsistent Application • Failure to Develop ‘Full Package’ • Opportunities Never Greater
Thank You! ajhanson@iisd.ca