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FOIA Number: 2012-0769-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: Council on Environmental Quality Series/Staff Member: Kathleen (Katie) McGinty Subseries: OA/ID Number: 2891 FolderID: Folder Title: Financing Environmental Development Stack: Row: Section: Shelf: Position: S 61 5 11 1 -7°L7 APR 17 '92 13:22 921 4A188 (1) 0:31 No P.2/5 P.U2 Eminent Persons Meeting on Financing Clobal Environment and Development Tokyo in April 1992 TOKYO DECLARATION ON FINANCING GLOBAL ENVIRONMENT AND DEVELOPMENT The human future is at risk. Wasteful patterns of production and consumption in industrialized countries together with pervasive poverty and population growth in develop- ing countries are leading to the destruction of the Earth's ecological base and Infolerable levels of human suffering and deprivation. This dangerous course jeopardizes the pros- pacts for the survival and well-being of future generations. It is time to reevaluate the thinking which underlies our present society. A new environmental ethics needs to he established, and new value systems accepted and sup- ported by the citizens and grassroots levels, and new approaches towards development based on the principles of strengthening the links between people, environment and development; adjusting our behavior to the natural order that lies behind the limited and vulnerable ecosystems of the Earth; sharing the environmental space equitably among all countries of the world, and acting to meet the needs of the future as well as present gener- ations. The June Earth Summit in Rio offers a unique opportunity to forge a global part nership for sustainable development to eradicate poverty and to safeguard the cnviron- ment upon which human life depends. This global partnership must start with a commitment by the developed countries to sharply reduce the burden they impose on the carrying capacity of the Earth's ecosystem. They must change to non-destructive production and consumption patterns and stand ready to support developing countries, which on their pait, should articulate new strategies to accelerate the pace of their development and deal effectively with both global and national environmental concerns. In two years of intensive preparations and negotiations, the 175 Members of the United Nations have established the basis for agreement in Rio on a comprehensive programme of co-operative action, Agenda 21. it includes a broad range of practical measures designed to effect the transition to sustainable development. Accordingly, we appeal 10 leaders of all governments to come to the Earth Summit at Rio prepared to commit themselves to the measures required to give effect to a new global partnership for sustainable development. 1 Cremized In: IIV. I Inited Nations inference 141 Endironment illkl Desclopment Y1.1- APR 17 '92 13:23 924 4H188 (1) 0:31 Nu P.3/5 P.U3 The main part of the expenditures in the developing countries to implement Agenda 21. which may amount to over $600 billion a year, will come from developing countries themselves. Developing countries will require # supportive international and national economic environment 10 enable them to mobilize more internal resources. or primary importance to developing countries therefore is: First, increased access 10 the markets of industrialized countries. In this context. an immediate and meaningful conclusion of the Uruguay Round is absolutely essential. Second, increased inflow of private investment and technology transfer into de- veloping countries. Third, durable solutions to the debt problems of developing countries will be a prerequisite for their transition to sustainable development. Eourth, very substantial external support will be needed to complement these cf- forts. The UNCED Secretariat has estimated that international concessional financing on the order of $125 billion will be required annually, H figure that should not be surprising given the scale of the efforts needed. The expenditures for both developing and developed countries may appear large, but. on the other hand, they are modest in relation to world- wide military expenditures of some $1 trillion per year and the similarly large amounts of tax concessions and subsidies through which governments encourage and support policies and activities that often damage the environment. In view of the magnitude of the exter- nal resources needed for implementation of Agenda 21, the 0.7 percent ODA/GNP target acquires new relevance. Financing for sustainable development should not be viewed as "foreign aid" in traditional terms, it is an essential investment in global environmental security. It may take time to make time for many developing countries to make the changes and their own policies and management structures required to utilize new funds efefctively in their transition to sustainable development. It will also take time for the industrialized countries to establish the revenue sources required to provide such funding. For that purpose in many countries the saving ratios have to be increased while pursuing policies of sustained economic growth. New and additional financial resources should support the processes of fundamen- tal change which the transition to sustainable development requires. At our meeting in Tokyo, we focused especially on how funding for sustainable development might be increased to finance implementation of the Agenda 21 action programme. To that end, we address the following specific recommendations to the governments of the world. specified/ At UNCED, traditional donors, as well as other countries in a position to shoulder a part of the burden, should each enter into 8 firm and monitorable commitment quantified with regard to ODA in order to ensure a significant increase of resources for sustainable development. rinoda Equally, developing countries should commit to establishing open, participa- tory and monitorable implementation systems which give confidence that resources from all sources are well used for the purposes intended. capacity Immediate significant support should be extended 10 developing countries for capacity building and technology transfer and for programmes and projects ready for building as essantial first step & indicia 2 of creditiling APR 17 '92 13:23 - 924 48188 (1) U:31 No P.4/5 P.04 implementation, as a credible commitment to the new partnership. Rio is the place for an initial commitment by donors to increase funding for this purpose. A re-orientation of fiscal and taxation policies could be Instrumental for promoting changes in demand patterns. In developed countries such a re-orientation could also help to generate the additional resources needed by developing countries, while in the developing countries it could assist in allocating more resources to sustainable development. Countries may also wish to consider special taxes and charges in the context of the global partnership being forged at Rio, keeping in mind the impact on international competitiveness. The funding of sustainable development, including new and additional resources, should flow primarily through the various existing channels including those with expertise, experience and efficiency in the development and promotion of accelerated and sustainable programmes. (For a list of some channels and mechanisms of funding, see Annex) The private sector will have to take on an important role in the creation of environmentally sustainable global development. In order to associate fully the private sector in the implementation of Agenda 21, it would be useful to set up an instrument for coordinating the participation of firms, non-governmental organizations and private persons into the planning, the financing and the realization of environmental actions linked to local development projects. This mechanism would be supported by voluntary contributions from the private sector and, eventually, also from governments. It would have a leveraging effect on regional development banks and the UNDP. We call for establishment of a continuing process through which developing coun- tries can enter into long-term compacts with donors for funding of their external needs for implementation of Agenda 21 measures under mutually-agreed conditions which ensure availability of such funds over time and their effective utilization. The World Bank Con- sultative Groups and UNDP Roundtables should be utilized for the country-level negotia- tions this would entail. Japan holds a remarkable record in combining substantial improvements in its domestic environment with unprecedented levels of economic growth. This provides the basis for Japanese lendership in global environment and development cooperation commensurate with its growing weight in the world economy. We appeal 10 Japan, along with other industrial nations, to assert their leadership at the Earth Summit. We urge other industrial nations to join with Japan prior to the Rio Conference to indicate with some specificity their support for global environment and development cooperation. 3 -7°V2 APR 17 '92 13:24 924 48188 (i) U:31 No P.5/5 P.U5 ANNEX Channels and Mechanisms - A revised and strengthened Global Environment Facility (GEF), to finance programmes related to global environmental issues such as the ozone layer, climate change, biodiversity and oceans as well as other programmes of global significance in Agenda 21. The GEF should be fully representative in its decision-making process and transparent in its operations. In order to reach agreement as quickly as possible, we suggest that the finance, economy and planning ministers scheduled to be in Washington at the end of this month for the meetings of the IMF-IBRD Interim and Development Committees and of the GEF participants, hold a specific meeting on this issue in order to evaluate this proposal and to work out its operational guidelines. IDA, the most concessional window of the World Bank. A substantial environmentally committed increment, over and above the real volume of IDA-9, would enable the Bank to integrate and promote programmes in the poorer countries which support sustainable development objectives elaborated in Agenda 21. - The regional development banks, to support programmes of regional con- cern not covered by GEF. UNDP, to enable it to take the lead in supporting and improving capacity building and technology transfer at the national level; - UNEP. to strengthen its key role as the global environmental agency and centre of leadership; United Nations University and its subsidiary research and training centers to undertake studies in global environment; Additional funding to UN Specialized Agencies and other UN bodies as- signed a wide range of tasks under Agenda 21; - Funding for sustainable development through bilateral channels. Unilateral initiatives such as national foundations; I Measures including tax incentives to encourage indigenous and foreign private investment and technology cooperation for sustainable development and measures to improve the coordination and mutual support of private investment and public conces- sional funds. Privately supported agencies which have close links to non-governmental groups of developing countries and which often work most effectively at community and household levels. The use of tradable permits should continue to be explored as a means of harnessing market mechanisms to Increase efficiency and the pressures 10 reduce pollu- tion; they might in addition provide a source of external funding for developing countries' environmental priorities. 4