TOWARDS A RESOURCE EFFICIENT SOCIETY
- 1. TOWARDS A RESOURCE EFFICIENT SOCIETY Shardul Agrawala Head of Environment and Economy Integration Division OECD Environment Directorate Stockholm, 25 March 2015
- 2. 1. THE NEED
- 3. Note: values using constant 2010 purchasing power parity (PPP) exchange rates. Source: (OECD, 2012) OECD Environmental Outlook to 2050; output from ENV-Linkages. 3 Projections for real gross domestic product: Baseline, 2010-2050 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 2010 2015 2020 2025 2030 2035 2040 2045 2050 Billionsofconstant2010USD OECD BRIICS RoW US China India World economy will nearly quadruple by 2050
- 4. 3 billion more middle-class consumers will fuel future demand 4 Global middle class1 Billions of people ROW 2030 3.23Latin America 4.88 3 billion Asia-Pacific North America Europe 2020 3.25 1.74 2009 1.85 0.53 1 Based on daily consumption per capita ranging from $10 to $100 (in purchasing power parity terms) Source: OECD (2011), Perspectives on Global Development: Social Cohesion in a Shifting World 0.03
- 5. Increasing extraction costs, sink saturation Increasing cost Atmosphere Resource Stocks Sinks Water Terrestrial 72 Gt 49 Gt of GHG 228 Mt of P 12 Gt of Waste Source: OECD/IEA data, OECD Materials Report Extracted & used 35 Gt (1980) . . . 72 Gt (today) . . > 100 Gt (2030) . . SATURATION
- 6. And increasing criticality of materials (by 2030) 6 Concentration of production Concentration of reserves Political stability Substitutability Recycling Breakdown by end- use sectors Value added of end- use sectors SUPPLYRISK ECONOMIC IMPORTANCE CRITICALITY AREA Al Antimony Barytes Bauxite Beryllium Borate Chromium Cobalt Coking coal Copper Diatomite Feldspar Fluorspar Gallium Germanium Gold Gypsum Hafnium Indium Iron ore Lithium Magnesite Magnesium Manganese Mo Natural Graphite Nickel Niobium PGM Ph Rock Potash REE (Heavy) REE (Light) Rhenium Scandium Selenium Silicon Metal Ag TantalumTellurium Tin Titanium Tungsten Vanadium Zinc 012345 SupplyRisk .02 .04 .06 .08 .1 .12 Economic Importance CRITICALITY AREA OECD 2015 forthcoming
- 7. 2. PROGRESS TOWARDS A RESOURCE EFFICIENT SOCIETY
- 8. Some progress on decoupling materials consumption from economic activity 50 75 100 125 150 2000 2002 2004 2006 2008 2010 Index 2000=100 material consumption GDP OECD 50 75 100 125 150 2000 2002 2004 2006 2008 2010 Index 2000=100 material consumption GDP World
- 9. But significant variation across countries 0 500 1000 1500 2000 2500 3000 3500 4000 2011 or latest available year 2000 USD/tonne
- 10. And hidden flows further alter the picture
- 11. 3. EFFORTS FOR BETTER POLICIES
- 12. Policies need to address the full material flow cycle Industrial systems Product/Service supply chains Energy production Ecological systems Renewable resources stocks Non-renewable resources stocks Finite media Energy sources Societal systems Energy use Service use Durable product use Consumable product use Natural Resource policies Product Life cycle policies Waste Management policies Waste material disposal or recovery Material harvesting Demand fulfilment
- 13. • Reduce: eco-design, Extended Producer Responsibility (EPR), green procurement • Re-use: economic instruments (e.g. low VAT for repair work), refurbished products standards • Recycle: Landfill and incineration taxes, EPR, PAYT, recycling targets A diversity of instruments are being used
- 14. • Fragmented policy landscape to address specific materials, products, life-cycle stages • Integration and coherence between policies often lacking • Risk of shifting environmental burden from one location, or one medium, or one phase of the life- cycle to another But…
- 15. 15 Sustainable Materials Management • Sustainable materials management, OECD working definition: – approach to promote sustainable materials use – integrating actions targeted at reducing negative environmental impacts and preserving natural capital – throughout the life-cycle of materials – taking into account economic efficiency and social equity • Look beyond waste management to upstream life-cycle phases • Requires the use of a policy mix, and • Coordination across policy areas
- 16. Design of economic instruments (e.g. Extended Producer Responsibility, tradeable recycling certificates) Sectoral and material policies (e.g. construction materials, critical materials) Waste prevention policies Exploring policies to support new business models, economic benefits of sustainable materials management. Operationalising Sustainable Materials Management: Ongoing OECD Work