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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 United Nations Forum on 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 33 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 prominent in 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 efficiency standards are emerging as a new frontier. Importance of VSS 4 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 serious challenge in particular for small-scale producers. Importance of VSS (cont’d) 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. 5 5 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. 6 6 7 7 Growth of VSS Recent Average Annual Growth Rate of Key VSS Markets: Global US 5-10 % 10+ % 10-15 % 15-20 % Fair Trade 35 % 40 % Utz Certified 30 % -- Rainforest 105 % 120 % Conventional Food Markets 2-4 % 3-5% High-value Organic Source: State of Sustainability Initiatives, 2011 Geographical distribution of sustainable coffee certification, 2011 (mt) Committee On Sustainability Assessment Impact Assessment Tools to measure the costs and benefits of implementing sustainable certification programs Economic Social Environment 1. 2. 3. 4. 5. Farmer Livelihoods Risk & Resilience Competitiveness Management Organizational 1. Health & Safety 2. Working Conditions 3. Education & Training 4. Basic Rights & Equity 5. Inclusive Value Chains 1. 2. 3. 4. 5. Resource Use Waste Soil Conservation Biodiversity Climate Change Sample: 9 countries, over 4,000 farms, 2 crops (coffee/cocoa) with control groups (2008-2009) Benefits and Costs of VSS 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. 12 12 Rational for Creating UNFSS 13 13 • VSS as means to Sustainable Development, not as ends in 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 recognized as 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 a new meta-governance system for international supply chains, largely outside WTO rules. Rational for Creating UNFSS (cont’d) What is important to address is that VSS are scrutinized as: (i) proportionate to the (real) risk they claim to address; (ii) scientifically-based; (iii) that the burden of compliance is distributed fairly; and (iv) VSS should not undermine or weaken rules of the WTO’s TBT (Technical Barriers to Trade) and SPS (Sanitary and Phytosanitary) agreements. 14 14 UNFSS Added Value 15 15 • 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. • Better coordination of activities among UN partner organizations. 16 UNFSS Structure: Members of the UNFSS 16 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 Preliminary Activities of UNFSS (from launch) Action areas identified Status Decision-making tool for policy makers on VSSs Draft tool (IIED/TSPN), being further developed to adapt/validate at producer country level. Flagship report on VSSs Initial publication almost ready for dissemination (draft shared with ICCO). Impact Assessment working group Work with exisiting initiatives (COSA etc.), support interpretation of results for policy Capacity building activities Begin in pilot countries, link with exisitng initiatives- (SCAN etc). Harmonization and Working group being set-up, building on existing equivalence working group work (GOMA-organic standards/Global Gap). Emerging standard initiative working group Provide information and promote their relevance and value to Sustainable Development. National and regional Committees linked to UNFSS Under development and implementationBuild on briefings, link to UNFSS. 18 19 For more information: Website: www.unfss.org email: [email protected] Support for the UNFSS provided by: 19