Intergovernmental Forum of Dialogue on Voluntary Sustainability Standards

1. The UN Forum on Sustainability Standards (UNFSS) Intergovernmental Forum of Dialogue on Voluntary Sustainability Standards ICCO Workshop, Douala, Cameroon June 24-27, 2013 Christopher Wunderlich: UNFSS coordinator Jutta Steinmann: UNFSS support team

2. 2 2 2 2 United Nations Forumon Sustainability Standards (UNFSS) Objective: Effective forum for policy-makers to better understand voluntary sustainability standards (VSS) and be able to utilize VSSs as potential tools to support their own sustainable development strategies and goals. 2

3. 3 3 What are Voluntary Sustainability Standards (VSS)? • Mainly developed by private bodies (commercial and non-commercial). • Typically cover health, safety, environmental, economic, social and animal welfare issues. • “Credence characteristics”, i.e. attributes not verifiable through examination of the product (Production and Processing Methods- PPMs). • Most prominentin the food and agricultural sector (also significant in textiles/clothing, toys, timber products, cosmetics, bio-fuels, electronic goods). • Carbon & water foot-printing and energy and material/resource efficiencystandards are emerging as a new frontier.

4. 4 4 4 4 Importance of VSS 4 • VSS are of key importance for market entry and sustainable development. • Real developmental opportunities – strong market dynamics (including growing private sector interest and participation) • Unless pro-actively addressed, VSS can potentially become a market entry hurdle and a seriouschallenge in particular for small-scale producers.

5. 5 5 5 5 Importance of VSS (cont’d) 5 • Voluntary(i.e. private) Sustainability Standards (VSS) are often viewed as a technicality, when VSS are tools that can be used to: • Internalize environmental and social costs. • Advance sustainable production and consumption methods (including opportunities for energy/ material/ resource efficiency and cost savings). • Promote competitiveness in the growing and lucrative “sustainability” markets.

6. 6 6 6 6 6 Market Share of VSS-certified Bananas & Coffee Source: Food and Agriculture: The Future of Sustainability, UN Department of Economic and Social Affairs, D. Giovannucci, S. Scheer et al., NYC, 2012: 17.

7. 7 7 7 7 Growth of VSS 7 • Recent Average Annual Growth Rate of Key VSS Markets: Source: State of Sustainability Initiatives, 2011

8. Geographical distribution of sustainable coffee certification, 2011 (mt)

9. CommitteeOn SustainabilityAssessment Impact Assessment Tools to measure the costs and benefits of implementing sustainable certification programs

10. Economic Social Environment Farmer Livelihoods Risk & Resilience Competitiveness Management Organizational Health & Safety Working Conditions Education & Training Basic Rights & Equity Inclusive Value Chains Resource Use Waste Soil Conservation Biodiversity Climate Change

11. Sample: 9 countries, over 4,000 farms, 2 crops (coffee/cocoa) with control groups (2008-2009)

12. 12 12 12 12 Benefits and Costs of VSS 12 • Benefits of VSS use may arise at different levels: • Enterprise level • Sector level • National level • International level • Costs and benefits might arise at different points and levels (i.e. those bearing costs might not necessarily earn many of the benefits). Thus, governmental task to even out interests.

13. 13 13 Rational for Creating UNFSS • VSS as meansto Sustainable Development, not as endsin themselves. • Contextualize VSS into the macro-economic development perspective(i.e. not only market access and market shares agenda). • UNFSS should focus on public interest & public goods related to VSS. • VSS need to be recognizedas strategic policy issue(mitigating economic, food, climate and water crises). • Understood within overall life cycle of products and related services (looking at avoidance, minimization and management of ‘real’ risks). • Also of increasing importance for South-South trade.. • VSS represent anew meta-governance system for international supply chains, largely outside WTO rules.

14. 14 14 Rational for Creating UNFSS (cont’d) What is important to address is that VSS are scrutinized as: • proportionate to the (real) risk they claim to address; • scientifically-based; • that the burden of compliance is distributed fairly; and • VSS should not undermine or weaken rules of the WTO’s TBT (Technical Barriers to Trade) and SPS (Sanitary and Phytosanitary) agreements.

15. 15 15 UNFSS Added Value • An unbiased and credible policy dialogue that guides and benefits from analytical, empirical and capacity-building activities. • Structured to promote “ownership” by developing countries and assure the “demand-driven nature”of UNFSS activities. • The only inter-governmental (and multi-stakeholder) forum that deals with generic and strategic issues of VSS in a consistent and pro-active way. • Capitalizes on the strengths and specialization of each of the five UN organizations that partner on UNFSS. • Bettercoordination of activities among UN partner organizations.

16. 16 16 16 UNFSS Structure: Members ofthe UNFSS 16

17. 17 Activities of UNFSS (set-up) • High-level advisory board (multi-stakeholder) • Briefing sessions to consult and partner with stakeholders in building UNFSS: • Several in Geneva, WTO, UNCTAD XIII • China, Thailand, Panama • Cameroon (with Inter. Cocoa Org.; June 24-27) • Kenya (TBC) • Official launch of UNFSS- March 21-22nd, 2013 Geneva at Palais des Nations • Through consultation Advisory Panel prepared draft work plan which was discussed, adjusted and confirmed at UNFSS launch event: 17

18. 18 Preliminary Activities of UNFSS (from launch) 18

19. 19 19 19 19 For more information: Website: www.unfss.org email: info@unfss.org Support for the UNFSS provided by: 19