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120360277
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Financing Environmental Development
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120360277
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Financing Environmental Development
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Records of the Council on Environmental Quality (Clinton Administration)
Kathleen McGinty's Files
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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
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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