Transcript The Relevance of Standards in Green Industry and Trade Bernardo Calzadilla-Sarmiento Director UNIDO Trade Capacity Building Branch.

The Relevance of Standards in
Green Industry and Trade
Bernardo Calzadilla-Sarmiento
Director
UNIDO Trade Capacity Building Branch
The context:
Green Industry
The Challenge
The Solution – Green Industry
The Sustainable Development Pathway and
Green Industry – A two-pronged approach
The Green Industry Initiative – A two-pronged approach
Benefits of Green Industry
Policy Matrix for the Greening of Industries
Green Industry and
Standards
Environmental and Sustainability Standards:
Historical Overview – ISO standards

In reaction to the Rio 1992 Earth Summit:
 ISO set up in 1993 a Technical Committee (ISO/TC 207) with the scope of standardization in the
field of environmental management systems and tools in support of sustainable development.
 Development of the ISO 14000 series in 1996.
 ISO 14000 is a family of standards that address various aspects of environmental management.
ISO 14001:2004 and ISO 14004:2004 focus on environmental management systems.
Other standards in the family focus on specific environmental aspects such as life cycle analysis,
communication and auditing.
 ISO 11064-6:2005: Environmental requirements for control centres
 ISO 19011: Guidelines for quality and/or environmental management systems auditing
 ISO 50001:2011: Energy management systems - Requirements with guidance for use; specifies
requirements for establishing, implementing, maintaining and improving an energy management
system; purpose: enable an organization to systematically achieve continual improvement of energy
performance, including energy efficiency, energy use and consumption.
 ISO/TC 242: set up in 2008; scope: standardization in the field of energy management, including
energy efficiency, energy performance, energy supply, procurement practices for energy using
equipment and systems, implementation of a measurement system to document, report, and
validate continual improvement in the area of energy management.
Environmental and Sustainability Standards:
Historical Overview – Ecolabels

EU Ecolabel:
 Established in 1992 by the European Commission (EC) to encourage businesses to market products
that meet high standards of environmental performance and quality.
 Part of a broader EU Action Plan on Sustainable Consumption and Production and Sustainable
Industrial Policy adopted by the EC in 2008 which also links the EU Ecolabel to other EU policies
such as Green Public Procurement (GPP).
 Helps consumers and public procurer's to easily identify environmentally friendly products. It is a
voluntary scheme and represents the only EU-wide official ecolabel.

US Energy Star label:
 Available on energy-efficient appliances, TVs, computers, audio visual equipment/electronics, office
equipment, heating & cooling equipment, etc. meeting strict energy efficiency criteria set by the US
Environmental Protection Agency; also available on energy efficient homes and buildings in the US.

US Appliance Standards Program:
 Set by the US Department of Energy (DOE);
 Must be met by all major home appliances.
 Manufacturers must use standard test procedures developed by DOE to prove the energy use and
efficiency of their products. Test results are printed on yellow EnergyGuide label, which have to be
displayed on many appliances. Label estimates how much energy the appliance uses, compares
energy use of similar products, and lists approximate annual operating costs.
Environmental Sustainability Standards in Trade

Compliance with such standards started to become a requirement that
buyers/importers imposed on suppliers

However, the development and imposition of public standards and
regulations was only one, and an increasingly subordinated, part of the
process

Consumer pressure and CSO/NGO movements and campaigns were
even more prominent

The most important trend has been a drive for private standards and a
successive increase in their scope and coverage
Role of standards in industry and trade (I)
The ‘user-pays’ principle and the legal liability placed on businesses to
supply products that comply with increasing health & safety regulations
instigated a response from multinationals and especially big retailers
towards setting stricter standards within their value chains.
Dynamics of these developments are most apparent in agro-product
value chains. Good agricultural practices (e.g. GlobalGAP, ISO 22006)
and food safety management and requirements in food processing and
supply chains (e.g. Codex HACCP, GFSI, BRC, ISO 22000) as well as
standards on packaging and labelling have been developed in
response to these complex dynamics.
Role of standards in industry and trade (II)
Why are Private Standards growing in importance?
 Consumer Awareness - Consumers in developed economies, as well as
civil society organizations in those parts of the world, have growing concerns
about the social and environmental conditions prevailing in countries
participating in the supply chains of products that are sold into their markets
 Governance Gap - Cases of misconduct indicate that national
governments in developing countries often fail to enforce national and
international norms and regulations. Consequently, globally operating
companies find themselves faced with the challenge of responding to this
governance gap.
 Differentiation Tool – Many multinationals use private standards as an
instrument of supply chain management and as a mechanism to gain market
advantage over rivals.
Legislation
Environment
Consumer / user
health and safety
CE Marking
E.g. packaging, WEEE,
RoHS, cadmium
ISO 26000, GRI, Global Compact
Social / fair
trade labels
ISO 9000
certificates
Quality
SA 8000 /
OHSAS
Codes of
conduct
EN / IS0
standards
Eco labels
Social accountability
Buyer requirements
IS0 14001
Environment
Confronting and benefiting from sustainability standards
in global markets
The basic steps for greening enterprises in developing countries are also relevant for the
commercial challenge of attempting to enter – or remain in – world markets, and having
to meet an increasing number of environmentally-related standards to do so.
These standards require enterprises to reconfigure their products and/or processes to
meet the requirements of international customers or the laws of the countries to which
they wish to export, and to certify that they have done so.
In other words, they must be able to:

Redesign their products so that they meet any pertinent environment-related product
standards;

Reconfigure their processes so that they meet any pertinent environment-related
process (technology and management) standards;

Certify that their products and/or manufacturing processes meet these standards.
Trends
Dynamic relationship between technical regulations and private standards
Many standards on consumer health and safety have evolved into
legislation. On the other hand, many legislative requirements have translated
into stricter private requirements (illustrated by organic products labeling).
Transparency and traceability across the value chain
Higher transparency within the value chain and traceability of products – the
pressure to comply with private standards is transmitted down the value
chain.
New sustainability concerns: water and energy efficiency
In the past few years, many new demands related to climate change and the
sustainable use of resources, such as energy and water, have emerged as a
result of international concerns about sustainability. Buyers are responding to
these concerns by factoring energy, water and carbon into their codes and
requesting their suppliers to take certain mitigating measures.
Role of governments and policy makers
Two particular concerns for developing countries in this respect:

Weaknesses in national capacity for conformity assessment: In order to benefit
from possible trade opportunities that voluntary sustainability standards can bring,
countries have to access rather high-cost conformity assessment service providers
(e.g. certification bodies and testing laboratories) from abroad.

Not all standard developers follow ISO Guidelines for standardization, certification
and accreditation - leaving many developing countries voiceless in the process.
Possible measures for policy makers:

Support establishment of necessary supporting institutions for industry that can
assist enterprises to meet standards and certify that they do so,

Monitor the development of environment-related standards that affect trade,

Use relevant international fora to ensure that the impacts of new standards on their
industry are minimized,

Informing their industry of new standards that could impact it, and assist them to
meet these standards.
UNIDO activities in
SPECA countries
UNIDO activities in SPECA countries
UNIDO projects & initiatives on trade development in SPECA
countries
UNIDO
projects
 SPECA Regional Network for Conducive Business Environment
 Agro processing and marketing for small-scale producer groups, Kyrgyzstan
 Strengthening Damu Center for Development of Industrial Enterprises, Kazakhstan
 Fostering competitive clusters, Uzbekistan
UNIDO
Trade
Capacity
Building
projects
 Trade Capacity Building of ECO Member States in Standards, Metrology, Testing and
Quality Infrastructure
 Trade capacity-building training programme in Central Asia
 SPS side event organized by STDF and UNIDO in Baku, Azerbaijan at the UNSPECA – at
the Aid for Trade Ministerial Meeting
UNSPECA – Aid for Trade related initiatives

SPS side event organized by STDF and UNIDO, 1-2 December 2010,
Baku, Azerbaijan at the UNSPECA – at the Aid for Trade Ministerial Meeting
Managing Sanitary and Phytosanitary Measures (SPS) in SPECA Countries:
Completing the Transition

Trade Capacity Building of SPECA Member States in Standards,
Metrology, Testing and Quality Infrastructure – project proposal
To strengthen SMTQ infrastructure of SPECA member states through enhancing capacity of
conformity assessment system including laboratories and building technical staff capacity on
implementation of standards relevant to WTO requirements.

Trade Capacity Building for ECO Member States in Standards,
Metrology, Testing and Quality (SMTQ)
Roadmap for better linking trade in ECO region

Quality infrastructure policies designed at regional and national levels to
foster intra-regional trade

Regional quality infrastructure designated and division of labour and
responsibilities agreed upon

Quality policy road map designed at the regional and national levels

Regional quality infrastructure framework proposed for standardization,
metrology, accreditation and conformity assessment such as inspection,
testing, certification plus technical regulations and specifically food
safety

Promotion of ECO quality infrastructure programme at country level to
mobilize human and financial resources.
Trade capacity-building training programme in Central Asia
Training programme was designed to cover topics which are important for
active participation of Central Asian countries in regional and global trade
and benefiting from it. As a result of the training, the participants gained a
better understanding of the following topics:
 Liberalization of world trade and trade facilitation;
 Trade and industrial potential for growth;
 Competitiveness of national trade and industry;
 The building blocks of national quality infrastructure, including
standardization, metrology, accreditation and conformity assessment;
 Development of regional and national quality policy;
 WTO Agreements on Technical Barriers to Trade and Sanitary and
Phytosanitary measures (TBT/SPS) and their implications;
 Meeting international standards of production in order to gain
access to markets;
 The use of private standards and introduction to the voluntary
sustainability standards.
Trade capacity-building training programme in Central Asia,
8-15 May 2013
Participants
Lecturers
The Training was attended by 25 participants from Government departments, trade
organizations, chambers of trade and industry, universities, consultancies and other
organizations from the following countries (all of them SPECA countries):
 Uzbekistan (Total: 3, Female: 2, Male: 1)
 Kazakhstan (Total: 8, Female: 4, Male: 4)
 Kyrgyzstan (Total: 10, Female: 5, Male: 5)
 Tajikistan (Total: 4, Female: 2, Male: 2)
The lectures were given by a group of international experts, including:
 Mr. Jacek Cukrowski, Chief, UNIDO Capacity Building Institute
 Mr. Wojciech Sudul, Ministry of Economy, Poland
 Mr. Ian Dunmill, Assistant Director, International Organization of Legal Metrology (OIML)
 Ms. Lorenza Jachia, UNECE
 Ms. Dominika Dor, UNIDO
 Mr. Roman Mogilevski, Institute of Public Policy and Administration, University of Central Asia
 Mr. Grzegorz Donocik, Senior Advisor to UNIDO
 Dr. Anwar El-Tawil, ex-Director, ISO Programme for Developing Countries
Trade capacity-building training programme in Central Asia,
8-15 May 2013