FREIE UNIVERSITÄT BERLIN, ENVIRONMENTAL POLICY RESEARCH CENTRE [FFU]

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1 FREIE UNIVERSITÄT BERLIN, ENVIRONMENTAL POLICY RESEARCH CENTRE [FFU] and JAPANESE-GERMAN CENTER BERLIN [JDZB] Symposium Indicators for Evaluating Sustainable Development The Ecological Dimension from Monday, November 1 to Tuesday, November 2, 2004 at the JDZB, Saargemünder Str. 2, Berlin The Example of OECD-Environmental Performance Reviews Heino von MEYER (OECD Berlin Centre)

2 Evaluating Sustainable Development -- The Example of OECD Environmental Performance Reviews Heino von Meyer OECD Berlin Centre Symposium on Indicators for Evaluating Sustainable Development Japanese-German Centre (JDZB) and Freie Universität Berlin (FFU) 1-2 November

3 The OECD in short The OECD: a permanent international conference where governments work together to address the economic, social and environmental challenges of interdependence and globalisation; Organisation and Membership a provider of comparable data, analyses and forecasts to underpin multilateral co-operation; with today 30 Member Countries + EU Commission representing 2/3 of global GDP and 2/4 of world trade; and a global outreach to more than 70 developing and transition economies. 2

4 The OECD in short Outreach OECD Member countries Countries with close working relations 3

5 The OECD in short OECD Themes Directorates Economics Employment and Social Affairs Environment Trade Public Governance and Territorial Development Science and Technology Statistics Education Development Agriculture Financial, Fiscal and Enterprise Affairs Public Affairs and Communication Semi-autonomous Agencies and Centres IEA, NEA, CERI, DEV etc. 4

6 The OECD in short The Environment Directorate works in particular on: Economic analyses of environmental management (air, water, waste, nature etc.) Areas of ENV Work Integration of environmental concerns in a) national economic and sectoral policies (taxes, subsidies, agriculture, energy, transport) b) global and structural policies (climate, biodiversity, trade etc.) Environmental performance and information a) env. information and reporting (data, indicators, information systems) b) environmental performance (country reviews) 5

7 The OECD in short Data & Indicators Analyses OECD's way of working Discussion & Negotiation Recommendations & Decisions Implementation Peer Reviews -- Multilateral Surveillance 6

8 Environmental Performance Reviews Peer Reviews are systematic assessments of a country's achievements by "equal partners" (peers) with the aim of helping the reviewed country -- to comply with established standards and principles; -- to benefit from best practice experience; -- to improve policy effectiveness and efficiency. Peer Reviews The reviews are characterised by a relationship among They rely on mutual trust partners not adversaries. -- among participating countries; and -- in the common process. Through the mutual character of the evaluation emerges an international system of accountability. 7

9 Environmental Performance Reviews Peer Reviews are a typical OECD metier They have a long tradition in several areas -- economic policy; -- development assistance (ODA); Peer Reviews -- sectoral policies (agriculture, energy); etc. The Environmental Performance Reviews (EPR) -- were launched in 1992; -- DEU and JAP were among the pioneers; -- meanwhile approx. 50 EPRs have been completed. 8

10 Environmental Performance Reviews Peer Reviews are a typical OECD metier They have a long tradition in several areas -- economic policy; -- development assistance (ODA); Peer Reviews -- sectoral policies (agriculture, energy); etc. The Environmental Performance Reviews (EPR) -- were launched in 1992; -- DEU and JAP were among the pioneers; -- meanwhile approx. 50 EPRs have been completed. 9

11 Environmental Performance Reviews 1991 Mandate by the OECD Ministerial Council in response to a G7 summit request First Cycle : 30 Member countries plus a few non-member countries 2001 Mandate renewed Second Cycle New emphasis From ecological effectiveness and economic efficiency of environmental management and policy towards environmental implications and impact of economic, sectoral and social policies. WPEP Senior government officials from all Member countries (International policy dialogue and common assessment) 10

12 Environmental Performance Reviews Improving national policies by -- influencing media, public opinion, decision makers; -- stimulating accountability and transparency Purpose Strengthening international co-operation by -- working towards common perceptions; -- promoting soft international commitments; -- establishing a level playing field. 11

13 Environmental Performance Reviews Review (Description / Evaluation) Method Intentions Actions Results aims, objectives, targets (weak, ambitious, qualitative, quantitative) institutional settings, types of instruments, costs ex-post evaluation PSR - framework (state - pressure - response) Recommendations (Prescription) 12

14 Environmental Performance Reviews Structure of the Review Reports Conclusions and Recommendations Three Review Parts: Structure Environmental Management Sustainable Development International Commitment Effectiveness and Efficiency ECO and SOC interface global, regional, bilateral 13

15 Environmental Performance Reviews When assessing for each Effectiveness and Efficiency of Environmental Policy Environmental Medium or Theme E.g. air, water, waste, nature and biodiversity Part 1 Environmental Management the EPRs systematically analyse -- Environmental regulations; -- Economic incentives; -- Institutional settings; -- Societal approaches; -- Costs and financing; -- Monitoring und enforcement. 14

16 Environmental Performance Reviews When assessing for each Sustainability Economic, Social, or Sectoral Policy Area the EPRs systematically analyse Part 2 Sustainable Development -- Institutional integration (E.g. in the context of strategic or programme planning, at project level, in monitoring, ex-ante and ex-post evaluation) -- Market based integration (E.g. by setting prices, taxes, charges or subsidies) -- Societal integration (E.g. through access to information and courts, NGO participation and partnerships, env. education and perception) 15

17 Environmental Performance Reviews When assessing for each International Environmental Commitments International Convention global, multilateral, bilateral the EPRs systematically analyse Part 3 International Co-operation -- Signature -- Ratification -- Enactment -- Implementation -- Enforcement The OECD Environmental Performance Review Process is the only systematic international Mechanism which covers all agreements. 16

18 EPRs and Indicators Indicators are yet important tools only one tool to assess environmental performance. Essential is Some Essentials -- data availability, coherence, frequency; -- inter-country comparison; -- careful interpretation context level intensity trend 17

19 EPRs and Indicators Sets of Indicators 18

20 EPRs and Indicators Sets of Indicators used in: Monitoring environmental progress Reviewing environmental performance Measuring progress towards sustainable development CORE ENVIRONMENTAL INDICATORS (CEI) The OECD Core Set ~40-50 core indicators Environmental issues Socio-economic & general indicators supplemented with: Environmental Data Environmental Accounting Environmental expenditure Natural resource accounts Material flow accounts Sectoral Environmental Indicators (SEI) One set per sector Transport Energy Agriculture Household consumption Tourism Informing the public Key environmental indicators (KEI) (~10-13 key indicators) Decoupling Environmental Indicators (DEI) 19

21 EPRs and Indicators PRESSURE Indirect pressures & drivers Direct pressures STATE RESPONSE Information HUMAN ACTIVITIES Energy Transport Industry Agriculture Others [production, consumption, trade] Pollution Waste Resources ENVIRONMENT & NATURAL RESOURCES Conditions: Air / atmosphere Water Land / soil Wild life / biodiversity Natural resources Others (e.g. human health, amenities) Information Societal Responses (Intentions - Actions) ECONOMIC, ENVIRONMENTAL & SOCIAL AGENTS Administrations Households Enterprises Sub-national National International Societal Responses (Intentions - Actions) 20

22 MEASURING PERFORMANCE ANALYSING POLICIES EPRs and Indicators interpretation EVALUATION TOOL context MEASURING PROGRESS ENV. PERFORMANCE INDICATORS link to Results / achievements Objectives Targets, commitments Aims, goals REPORTING TOOL MONITORING TOOL interpretation context ENVIRONMENTAL INDICATORS Core and key indicators Sectoral indicators UNDERLYING DATA SETS 21

23 EPR Japan -- Air pollution SO x 22

24 EPR Germany -- Air pollution SO x 23

25 EPR Japan and Germany -- Air pollution SO x 24

26 EPR Germany (2001) -- Air pollution Pollution: SO x 25

27 SO x Emissions Change ( ) % Intensity (1999) kg/$gdp - 3 JAP USA OECD GER

28 CO 2 Emissions Change ( ) % Intensity (1999) t/$gdp + 15 USA OECD JAP GER

29 EPR Germany -- Decoupling Emission-Intensity Growth of GDP and Population Transport and Energy Intensity 28

30 EPR Germany -- Recommendations Environmental Management further pursue efforts to decouple economic growth and employment creation from pollution pressures and energy and resource use; extend environmental policy attention to unsolved or new challenges, including nature conservation and diffuse pollution from agriculture and transport; continue efforts to harmonise, streamline and further develop environmental legislation within an integrated Environmental Code; strengthen and extend use of economic instruments to internalise external costs, and to progress towards sustainable production and consumption; improve the efficiency and transparency (e.g. accounting practices) of water and waste related services provided at municipal level; ensure that voluntary agreements become more effective and efficient (e.g. clear targets, reliable monitoring, improved transparency and third party participation); increase economic analyses of environmental policy measures, with the aim of achieving environmental objectives more cost-effectively. 29

31 EPR Germany -- Recommendations reduce or eliminate environmentally harmful subsidies in the energy and transport sectors; reinforce measures to limit NO x and CO 2 emissions from motor vehicle use and emissions of NMVOCs from solvent use; develop more rational transport pricing and taxation to further internalise associated environmental costs, and to encourage more fuel efficient and less polluting modes; Air develop mechanisms to evaluate the cost-effectiveness of control policy options, and make broader use of economic incentives for achieving air quality objectives; take further measures to reduce total final energy consumption in the residential sector. 30

32 Economic Interface EPR Germany -- Recommendations define and implement a national sustainable development strategy with targets, timelines, and commitments by the key actors; improve co-operation and co-ordination among Länder environmental administrations, and with the federal level, in regard to environmental integration and sustainable development; better integrate environmental concerns in transport, agriculture, energy and regional policies; further use the Environment Barometer and other tools to contribute to environmental and economic policy formulation, implementation, monitoring and assessment; in particular, extend its coverage to biodiversity; continue to integrate environmental concerns in fiscal policies (e.g. ecological tax reform) and, in particular, review concessions leading to major distortions and disincentives; review the environmental significance of subsidies (e.g. in the federal biannual subsidy report), in order to phase out those which are environmentally harmful, and provide incentives for sustainable development, environmental management and innovation. 31

33 EPR Japan -- Recommendations Economic Interface 32

34 EPR Germany -- Recommendations define and implement a national sustainable development strategy with targets, timelines, and commitments by the key actors; improve co-operation and co-ordination among Länder environmental administrations, and with the federal level, in regard to environmental integration and sustainable development; better integrate environmental concerns in transport, agriculture, energy and regional policies; Economic Interface further use the Environment Barometer and other tools to contribute to environmental and economic policy formulation, implementation, monitoring and assessment; in particular, extend its coverage to biodiversity; continue to integrate environmental concerns in fiscal policies (e.g. ecological tax reform) and, in particular, review concessions leading to major distortions and disincentives; review the environmental significance of subsidies (e.g. in the federal biannual subsidy report), in order to phase out those which are environmentally harmful, and provide incentives for sustainable development, environmental management and innovation. 33

35 Environment Barometer Environmental Policy Target and Result Scores 34

36 Environment Barometer Environmental Policy Target and Result Scores 35

37 EPR Germany -- Recommendations further examine disparities in environmental quality and their impacts on health and living conditions in different parts of society; further review the distributional implications of major environmental policy measures and ensure discussion of the results; further implement the joint action programme on environment and health; build on successful local initiatives (e.g. Local Agenda 21) to foster environmental and sustainable development progress; Social Interface improve the availability and timeliness of data and indicators on environmental quality, environmental pressures and related responses; improve public access to environmental information and access to justice for environmental stakeholders; strengthen public participation in the design, implementation and assessment of environmentally relevant projects and policies; broaden environmental education and encourage behavioural changes towards more sustainable consumption patterns. 36

38 EPR Japan -- Recommendations Social Interface 37

39 EPR Japan -- Indicators Nature and Biodiversity 38

40 EPR Japan -- Indicators Nature and Biodiversity 39

41 Evaluating Sustainable Development -- The Example of OECD Environmental Performance Reviews Heino von Meyer OECD Berlin Centre Contact: 40

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