Policy Report for
Reconfiguring Consumption
and Productionin Asia and the Pacific
12 Opportunities
for Accelerated Achievementof SDGs

PECoP-Asia
2018.7.1

Foreword

This policy report was prepared by the members of a research project “Policy Design and
Evaluation to Ensure Sustainable Consumption and Production Patterns in Asian Region”(PECoP-Asia; see Page 26 for details) in collaboration with Asia-Pacific Roundtable on
Sustainable Consumption and Production (APRSCP). This report aims to activate thediscussion of policies on sustainable consumption and production (SCP) in Asia and thePacific, and regional multistakeholder policy dialogues for accelerating achievement of the
Sustainable Development Goals (SDGs), particularly focusing on Goal 12.

This report put forward the idea that delivery of the SDGs in the region shall largely
depends on taking advantage of emerging forces including new business models, drivers ofwealth, wellbeing and human development, urbanisation, disruptive technologies anddigitisation. It also reflects academic views and on-going research outcomes of the PECoPAsia project. All of the 12 opportunities presented in this report indicate promising entry points
for SCP policy development and implementation in the era of the Paris Agreement and theSDGs in Asia and the Pacific.

1 July 2018
On behalf of the PECoP-Asia project
Masahiko Hirao
Tomohiro Tasaki
Yasuhiko Hotta
Norichika Kanie

Contents

1. Context of SCP in Asia and the Pacific:
Light and shadow of consumption and production

1

2. Four Strategic Directions of SCP policy

6

3. Emerging Opportunities for SCP

12

4. Other essential elements to ensure the abovementioned opportunities
contributing to SDG 12

20

5. Next step: SCP policy development and implementation

22

References

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Outline of PECoP-Asia project

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1.

Context of SCP in Asia and the Pacific: Light and shadow of consumption andproduction

Economic growth over the past few decades has brought affluence to people around theworld and reduced poverty. The extreme poverty rate has dropped considerably in mostdeveloping regions in the last two decades, with reduction rates between 46% and 94% in
Asia (UN, 2015). However, significant negative impacts on the environment and societies
have surfaced. Global resource consumption and environmental loads (greenhouse gases(GHG), discharge of waste, etc.) have increased to support a wealthier consumer lifestyleand economic disparities between regions and countries are rising. These are expected toincrease and expand even further in the future.
Today, the Asia-Pacific region is the world’s cradle of production in the world today.
Economic growth is remarkable (Fig. 1 on left), with consumption and accompanying
environmental impacts expanding at a rapid pace. Between 2000 and 2017, the material
footprint in the Asia-Pacific region increased at the largest and fastest pace in the world (Fig.
2), and GHG emissions in the Asia-Pacific region were also remarkable (Fig. 3). Emissionsof waste and pollutants are becoming more serious in many countries (e.g., the level of
PM2.5, an air pollutant, exceeds WHO standards as shown in Fig. 4), and preventing
environmental pollution has become an urgent task. Per capita income is still low (Fig. 1 onright), and environmental impacts in the Asia-Pacific region will continue to increase at thefastest pace in the world for now, with the region’s share in global environmental impacts
expected to rise.

Fig. 1. GDP by region (left) and per capita income around the world (right) (Data retrieved
from ESCAP (2017))

Fig. 2. Changes in material footprints by region around the world(Reproduced from IRP (2017) Assessing Global Resource Use: A systems approach toresource efficiency and pollution reduction)
1

Fig. 3. Global CO2 emissions between 1960-2011. Asia is represented by the blue section
on the bottom. (Reproduced from Friedrich and Damassa (2014) The History of Carbon
Dioxide Emissions. World Research Institute.)

Fig. 4. State of particulate matter (PM2.5) pollution in major cities in Asia (Reproduced from
ADB, Key Indicators for Asia and the Pacific, 2016)
2

What is causing the increase in environmental impacts? Taking resource consumption as
an example, Fig. 5 shows the consumption of resources in each region around the worldfrom 2000 to 2010 and 2015 to 2015 decomposed into three factors: population, affluence(GDP per capita), and technology (representing resource consumption per GDP and
resource efficiency). In the Asia-Pacific region, rising affluence has made the largest
contribution to increases in resource consumption during these periods. Population growth
rates have declined and the effects of elevated resource consumption resulting from
population increases are smaller. Resource efficiency deteriorated from 2000 to 2010, but
improved somewhat between 2010 and 2015, which helped curtail resource consumption.
However, it has not reached a level in which it has eliminated the effects of population growth
and the rising levels of affluence.

a) 2000-2010b) 2010-2015

Fig. 5. Factors for the increase in resource consumption around the world from 2000 to 2015
(Reproduced from IRP (2017) Assessing Global Resource Use: A systems approach toresource efficiency and pollution reduction)
One direction for the future is the expectation that the conversion to high-value-addedindustries and industries with high levels of resource productivity will continue. With a focus
on intellectual capital, the foundation for these industries, or patent stock in this case, it isclear that the number of patents worldwide almost doubled from 14 million to 30 million overthe past 19 years from 1992 to 2010 (Yagi & Managi, 2017). Compared with the rate ofincrease in developed countries (approximately twice as high as in OECD member
countries), rates in other countries are remarkable (about 7.5 times in 57 non-OECD member
countries), with the proportion of developed countries in the entire world decreasing from
97% to 88%. The application of intellectual capital in developing countries is expected toincrease in the future.
In addition, future changes in technology are notable, such as digitization, including AI(Artificial Intelligence), VR (Virtual Reality)/AR (Augmented Reality), 3D printing, IoT (Internetof Things), and Bigdata, automatic operations for these applications, and precision medicine.
Although these technologies may lead to a reduction in environmental impacts as a result of
improved efficiency, there is also a danger that they will result in an increase in environmentalloads due to increased consumption in new forms.
By contrast, rapid economic growth has exaggerated economic disparities between urban
and rural areas. More developed countries in Asia have higher shares of older rural residents
and the urban-rural gap in services, such as electricity, can be wide, particularly in lessdeveloped countries (UNDP, 2016). Attention must be paid to these types of unstable3

elements among Asia-Pacific societies. In addition, along with the growth of agribusiness,relocation of industries to rural areas, development of local cities, and increase in the numberof migrant workers, it is possible for households even in rural areas to enjoy a consumer
lifestyle that is not much different from those of urban residents, making a living using
products from domestic cities and foreign markets (Vandergeest et al., 2011; Rigg et al.,2012). As such, the driver to maintain “self-sufficient”-type farm villages in these areas isweakening.
From a social aspect, the eradication of poverty, as stated in Goal 1 of the SDGs, is an
essential task, especially in the Asia-Pacific region. To that end, it is vital to develop an
educational system that enables people to enter the labour market after receiving acomprehensive education (Aoyagi & Yoshida, 2017). Education is also expected to contributeto increasing consumer literacy in today’s advanced and complex consumer society. The rateof aging in the Asia-Pacific region is also predicted to rise rapidly in the future. In other words,
countries in the Asia-Pacific region must prepare for unprecedented changes in social
structures, including a shift from a demographic bonus to demographic onus. Various public
policies must be considered, keeping in mind such drastic structural changes, including thepotential for weakening safety nets.
Using only the roads taken by developed countries as reference will result in a failure tostay current with global trends. There are two significant differences with the paths taken by
developed countries: (1) (latent) changes in consumer lifestyles and values and (2) changes
in production patterns based on technological changes as represented by digitization.
With product retention and quality of life (QoL) expected to be satisfied with changes in
consumer lifestyles and values, there are movements to withdraw from lifestyles of massconsumption, such as minimalism and voluntary simplifiers that have appeared in developed
countries (e.g., Rich et al. (2017) studies the relationship between consumption patterns anddegree of happiness for Australians.) Even in emerging economies in Asia and the Pacific, itwill be necessary to consider the possibility of simultaneously developing such consumption
patterns.
Regarding changes in production patterns based on technological changes, production
paradigms have changed significantly from the production of goods to the production ofservices, which has encouraged a shift in consumer values from value in exchange to value
in contents represented in the ownership of goods, and simultaneously seen the shift invalues promote changes in production paradigms (relationship with positive feedback is
working.) Technological innovation is making this change possible. Situations where anyone
with a smartphone can easily use services are being generated as a result of digitization
using smartphones and IoT. For example, as an alternative to taxis, bicycle sharing in China
and the use of dispatch services in Southeast Asia are popular. While such interactions
between production and consumption have the potential to reduce environmental loads,
there is also a danger of moving towards a resource and energy-intensive society.
To address these challenges, the shift to sustainable consumption and production patterns(SCP) is an urgent agenda in the Asia-Pacific region. In the meantime, it provides anopportunity for the region to show the model-paths of building sustainable societies to therest of the world. Countries in the Asia-Pacific region have already introduced many policies
to accelerate the transition to SCP in the areas including, but are not limited to, cleaner
production, waste management, consumer information, etc. However, against the backdropof the rapid industrialisation resulting in the urbanisation and the expansion of the middleclass, those existing policy measures contributing mainly to the efficiency of the production
and consumption, will not be enough to address the above-mentioned challenges.
To further accelerate the transitions, countries in the Asia-Pacific region can takeadvantage of the emerging trends that followed the development of SDGs (particularly Goal12) and the Paris Agreement can be utilised. For example, global movements towards
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decarbonization triggered by the Paris Agreement can be a “game changer” for directing thepolicies as well as investments towards SCP. Technological innovation in relation todigitisation and renewable technologies boosted service-oriented mode of consumption andproduction, providing opportunities for creating sustainable ways to meeting demands withless material and energy consumption.
These emerging trends will make it easier to foster the transition of the society and theeconomy beyond the scope of the existing policies for efficiency. In particular, these trends
show the potential pathways for changing the relationship between producers andconsumers that have become distanced in the course of the conventional patterns of
economic development. Furthermore, these trends will create the opportunities forstakeholders to engage with each other in different manners to promote the socio-technicaltransitions to enable sustainable living. Therefore, countries in the Asia-Pacific region have
unprecedented opportunities to bring about changes beyond the scope of the conventional
SCP domain such as efficient resource use, cleaner production, design for the environment,
the 3Rs (Reduce, Reuse, and Recycle), and raising consumer awareness.
This policy report will firstly present four strategic directions of SCP policies of which policy
makers should keep in mind. Then, it presents 12 opportunities to mainstream SCP in Asiaand the Pacific.

52.

Four Strategic Directions of SCP Policy

In order to respond to the environmental, economic, and social problems mentioned in theprevious chapter and to achieve the SDGs all over the world, it is necessary not only tosymptomatically treat the “symptoms” of individual issues, but also to transform humanactivities fundamentally and change our governance (Kanie and Biermann, 2017). Changing
consumption and production patterns to sustainable patterns is indispensable for theprosperity of humankind, and the promotion of SCP in the Asia-Pacific region, which is home
to more than half of the world’s population, can be said to be a high-priority issue for theworld.
It is vital to establish production and consumption patterns that decouple socioeconomic
development and increases in environmental loads from the real sense of securing people’s
wellbeing and happiness. Figure 6 shows the concept of SCP that describes the verticaldirection of socioeconomic development and shrinks horizontally-expanding environmentalloads into global environmental capacity. As stated in Chapter 1, attention must also be paid
to unstable societal factors, making it necessary to develop a system of production andconsumption that appropriately combines supply and circulation systems in a way thatsimultaneously promotes the regional economy and employment.
The chapter proposes four strategic directions which SCP policies shall pursue. Firstly,
policy focus of SCP has been expanding from environmental agenda such as pollution
control to socio-economic agenda of reducing non-renewable resource use and increasing
wellbeing of people. In other words, SCP needs to address wellbeing of the society as awhole. Secondly, closer integration of consumption and production can provide new business
opportunities and development as well as increased utility of consumers. Circulation, sharing
and digitization (use of information and communication technology) are the key opportunities
to this end. Thirdly, transition to SCP can be pursued as a socio-technical transition, basedon holistic changes in social practices, technology use in daily life, associated with
development of infrastructure and institutional settings both at international/national policylevel and at local/community level. Fourthly, bottom up approaches are necessary toenhance effectiveness and acceptance of SCP policies across the region.
These directions are in line with future mid- to long-term directions in the “Asia PacificRegional Roadmap for Sustainable Consumption and Production” (see UN Environment and
APRSCP (2017) for the latest version) and are recommendations for SCP policy directions
to achieve the goals of SDG 12 with a target year of 2030.

Fig. 6. Reduction of environmental loads and achievement of wellbeing through SCP
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2.1.

SCP Policies are expanding from the environmental policy domain to the socioeconomic technology domain

SCP policies must include contents suited to the situation of each country. Many countries
in Asia and the Pacific region have strengthened SCP policies, covering the issues of cleaner
production, renewable energy, waste management, consumer information, etc. These
policies cover the conventional targets among the range of the SCP policies that has
expanded for the last four decades. SCP policies also changed institutional and regulatory
structures to some extent as reflected in SCP National Action Plans, providing the platform
for inter-ministerial coordination and partnerships with the private sector and otherstakeholders.
Figure 7 illustrates policy goals and the growth of menus according to the expansion ofpolicy issues. SCP policies originally focused on the pollution prevention shown in Column 1
and aimed at decoupling direct environmental pollution and economic growth (c.f. UNEP
2011). Then it included efficiency approach shown in Column 2 for separating environmentalloads and economic growth associated with the use of energy and resources, such as
greenhouse gases and waste.

Fig. 7. Expanding focus and menu of SCP policies (Hotta and Koide 2017)
On the other hand, alternative approaches beyond pollution prevention and efficiency havegained wider attention, as a result of the SDGs and the Paris Agreement that fostered themomentum toward decarbonization. As shown in Column 3, circular economy (European
Commission, 2015) and sharing economy contribute to the decoupling between the
consumption of non-renewable, natural resources and the welfare and wellbeing of society
as a whole. have become popular, These trends, hereafter referred to as “Sufficiency
Approach”, are the entry points further leading to the more innovative shift toward the oneplanet living.
It is very important to emphasize here that SCP is not anymore limited to environmental
policy domain such as pollution control, waste management and recycling, cleaner
production, eco-labelling, or consumers’ awareness but expanded to socio-economictechnology policy domain such as infrastructure building, welfare, business development,
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local development, and innovation.
In the meantime, societies in Asia and the Pacific region are witnessing the emergence ofinnovative business cases based on digitization, contributing to the substantial reduction of
resource and energy use in the production process, as well as alternative models of meeting
demands of the people. Societies in Asia can take advantage of these trends to strengthen
the interactions between production and consumption and drive the socio-technicaltransitions so that more wellbeing are delivered with less use of resources.
A policy mix to achieve specific policy goals does not have to be uniform, but be able tomaximize the effects of SCP policies effectively through flexible and strategic combinations
depending on the industrial, consumption, and urban structures of each country. Generally,
developed countries have responded to changes from Column 1 to Columns 2 and 3 instages, but in developing countries that are growing rapidly it is conceivable that they may
need to deal with moving to Column 2 or 3 while achieving Column 1 simultaneously.
[Column] Policy Visualization Tool
As shown in Fig. 7, SCP policies include a variety of areas and various approaches.
Therefore, simply implementing them individually will not maximize policy effects. For
this reason, in order to understand the phenomena from a comprehensive perspective
and connect this to effective implementation, tools should be prepared to visualize theentire situation. Through visualization, it is possible to discover that framing gaps are
not occurring for recognized events and to understand the nexus structure between
events. Policy dialogue is expected to be smooth in promoting these efforts. Although
anything can act as a visualization tool, the following requirements should be satisfied:(1) that it is clear how much is included in the event being discussed, (2) that it
contributes to policy dialogue and learning, and (3) that it is easy to understand. For
information on specific visualization tools, see Marletto et al. (2016) who indicatessocio-technical maps and Sibbet (2010) who gives a general explanation ofvisualization. The figure is an example of mapping various changes at themacro/meso-/micro level to examine measures for increases in energy demand due
to cooling and creates a package plan for countermeasures based on this.
[Related SDGs: 12.1, 12.a, 17.19]

Fig. C1. Example of mapping changes at the macro/meso/micro level surrounding
consumption and production (based on Tasaki (2017))
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2.2.

Strengthening linkages between consumption and production is a key, emerging,movement

The conventional pattern of economic development is driven by mass production andconsumption. Value chains have expanded over the world through specialization andsubdivision. Consequentially, the distance between consumers and producers have become
wider. In these circumstances, improvement of efficiency at each point will not be enough toachieve sustainable consumption and production. Conventional policies have tried toalleviate the problems caused by the increasing distances between consumers andproducers through providing the former with better information such as environmental
labelling, certification systems, and utilisation of footprint indicators (e.g., carbon footprints
and resource footprints) and connecting consumer information such as their values andlifestyles to design of products and services, consumer education, and corporate
environmental management.
Additionally, alternative approaches have been introduced recently, namely to change therelationship between consumption and production. Figure 8 shows five entry points to linkconsumption and production (See five dialogue balloons. Hereinafter, referred to as
consumption and production linkages, “CP linkages” in short). If the structure of consumption
and production consists of the four elements of processing and manufacturing (including
natural resource extraction)—provision—(final) consumption—circulation, there are three
directions (blue, green, red in figure) to strengthen CP linkages between final consumption
and the other three elements, and two directions (purple and yellow in figure) to strengthen
CP linkages within each consumption and production stage. These signs of changes are notnecessarily driven by environmental policy.
First entry point (green) is “feed-back of consumption to design and production” whichenables proper quantity production, on-demand production, localised/customized production.
Second entry point (red) is “circularity” which enables circular production, remanufacturing,
recycling, life extension, considering lifecycle management of products/parts/materials. Third
entry point (blue) is “product use without ownership/sharing” which enables product service
systems, function, lease and servicising. Forth entry point (purple) is “linkage within
consumption” which enables C2C sharing and C2C reuse. Fifth entry point (yellow) is“industrial symbiosis” which exchange and utilise material, by-product, waste, water, andenergy between industries in such a very efficient way as natural system.
These five entry points are becoming realistically available by digital application to products
and services as well as change in mind-set of consumers from ownership to utilisation offunctions. In Asian countries where rapid growth of the industry is continuing, the industrial
symbiosis will be very effective. It is also important to take advantage of the rise of sharing
and servicising in the urban areas. In the near future, CP linkages are expected to advancein ways as never before. More seamless connection of the manufacturing, provision,
consumption, and circulation of products/services and sharing, monitoring and accumulationof Bigdata enable the diversification of usage patterns of product functions beyond
ownership, raising people’s utility and wellbeing.

9Fig. 8. Five types of linkages between consumption and production
However, a consequence of CP linkages might be that new demand will increase rapidly
and resource and energy will be consumed to a large extent. Therefore, it is important for
SCP policies to encourage CP linkages do not increase resource/energy use and to guideeconomic development towards such achievement. The current state of production
paradigms and consumer values varies from country to country, but these changes are
occurring simultaneously worldwide. As will be mentioned in Section 2.3, even though theopportunities for CP linkages are rather open to emerging economies and developing
countries, they could be locked in to existing consumption and production systems that havebeen established by current developed countries. SCP initiatives related to CP linkages must
be imaginative and action-oriented and that are not a type that trails after developed
countries.

2.3.

Transition to SCP is a socio-technical regime shift requiring successive changes insocial practices, technology use in daily life, and associated infrastructure

Consumption and production patterns are framed by and embedded in existing regimes,
such as tax and education, and infrastructure, such as logistics and energy provisionsystems, and maintained/updated by the accumulation of daily practices of people andorganizations (Spaargaren, 2011; Shove, 2016; Spurling et al., 2013). Awareness raising of
consumers can sometimes influence their behaviour for the time being; however, behaviouralchanges will not take root unless they are associated with the changes in the wider contextsof their day-to-day living, including moving, eating, caring families, working, learning, taking
rest, and so on.
Therefore, it is necessary to change social mechanisms and modes of using technology tocreate and provide services with which people come into contact on a daily basis (Fig. 9). In
addition to the strengthening of the linkages between consumption and production as
described in Section 2.2, changes in infrastructures and institutional settings are effective insupporting individuals as well as organizations to adopt more sustainable practices. Some
examples include, but are not limited to, provisions of sustainable options for mobility andenergy, encouragement of resources- and energy-saving practices in workplaces,
community-based initiatives to build capacity of the families for 3Rs (reduce, reuse andrecycling), etc. At the same time, emerging innovations, such as new business models and10

mobile technologies, can also create new pathways for societies to fulfil the demands of thepeople while reducing the negative impacts of economic activities.
Innovations are already taking place in many corners of the societies in Asia and thePacific. To take full advantage of them, the engagement of stakeholders from different
sectors will be desired, including national and local governments, business, civil societies, aswell as academics and educators.

Fig. 9. Conceptual diagram of transition of social systems towards SCP

2.4 Bottom-up approaches are necessary to enhance effectiveness and acceptance of SCP
Policies across the region.
The shift and successive changes emphasised in Section 2.3 should be triggered by bothchanges in national/international-level agenda setting and its policy implementation andchanges in community-based initiatives. Such transitions are incubated in “arenas” wheremultistakeholder partnership is formulated and various buds of co-creation grow incollaboration beyond the boundaries of conventional stakeholders.
Transition to SCP at the local level is possible by identifying and nurturing bottom-up
initiatives. It should be linked to solutions of local concerns of people. There exist huge gaps
between international/national agendas (long-term and mid-term goals) and local concerns.
To address this gap, it is more effective to build linkages between different local initiatives,
including through a promotion of localised networks focusing on logistics, information,
financial, and material resources utilising advanced information and communication
technologies, as opposed to simply upscaling successful initiatives.
In Asia-Pacific countries, innovative local initiatives, such as the 3Rs (Reduce, Reuse, andRecycle), renewable energy, and sharing economies, are being successively created.
However, in this background is the active collaboration of local communities, civil society,businesses, and the government, where information and experiences are frequently shared,
linking resources such as fund and technology with ideas. For stronger policy supports, thesebottom-up approaches reflecting local concerns should be encouraged to align more with theSDGs in support with national governments, international agencies and experts.
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3.

Emerging Opportunities for SCPThis chapter discusses 12 opportunities for SCP based on the strategic considerations
raised above.
Several encouraging results are shown regarding the means to support the wellbeing of
the society and individuals, as are shown in the first two opportunities. Firstly, there are
growing knowledge that consumption of experience matters more than consumption of goods
for the happiness of people. Secondly, there are growing recognition on genuine wealth ofsociety is not limited to economic prosperity but wellbeing of the society as a whole.
Following these two opportunities, five opportunities are identified in relation tostrengthening of CP linkages towards more service-oriented modes of consumption andproduction. Further, five opportunities are identified in relation to changes in social practices,
technology use and associated infrastructure.

3.1 Consumption of experience matters more than consumption of goods for the happinessof people over the long run. (Opportunity 1)
According to the results of an analysis on a questionnaire survey of individuals conductedby the PECoP-ASIA project, the consumption of goods may only increase the level ofhappiness to a certain level, while experiential consumption has been found to possibly
continue to increase the level of happiness as consumption increases (experience-related,consumption with deep connections between people). In addition, it is suggested that people
who value connections with others and people who place an emphasis on future generations
may be able to maintain a relatively higher level of happiness through consumption for abetter quality of life. For items, such as furniture, if people inherit fewer items like in Northern
Europe and have a strong attachment with a connection to other people, they can maintaina feeling of happiness while decreasing consumption. There is room to consider mechanisms
in which people can feel more related to others than they currently do, such as sharing. It isnecessary to disseminate the idea of “consumption with an awareness of connections
between people” for people to maintain a level of happiness even in cases where future
consumption is reduced. This is in line with the traditional way of life in Asia and the Pacific,
that aspire for a better life.
[Related SDGs: SDG12.8]
3.2 Measurement of society’s genuine wealth has become important for policymaking(Opportunity 2)
In societies in the future, the perceptions of social change will be transformed, whichmeans that a new evaluation axis will be needed. From an economic perspective, newindicators are being proposed based on a discussion called Beyond GDP that captures
wealth as stock (inclusive wealth, new capital wealth indicators), rather than capturing wealthas flow. These indicators convert different types of capital, such as infrastructure, humanresources, and the natural environment, which also appear in the SDGs, into monetary units
and comprehensively measure them, with attention paid to the accumulation of capital as
stock (Dasgupta et al., 2015; Managi, 2016). There are also trends that measure thesubjective conditions of people, such as the degree of happiness and anxiety (Tasaki et al.,2010) and it is necessary for indicators to be developed to understand social anddevelopmental images that people want. In addition to developing indicators, the use of thesepolicies must also be promoted.

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These indicators incorporate environmental and social accounts, which mainstream thevalues of biodiversity and ecosystem services as well as social capital (active partnership of
stakeholders in society) in development planning and national economic accounts. Different
types of intangible capital, such as infrastructure, human resources, and the naturalenvironment are to be taken into account, with a view towards promoting intergenerational
wellbeing.
[Related SDGs: 17.19, 12.6, 8.4]
[Column] Measuring trade-offs and interlinkages by indicators
It is necessary to be aware that trade-offs and interlinkages (also referred to as“nexus”) between indicators are not taken into consideration here, since there are anumber of indicators used to measure a single event. Specific techniques to use
indicators, such as how to combine indicators measuring single events, or thedevelopment and use of indicators to measure trade-offs are needed.
In order to understand whether SCP policies are progressing effectively from thenational level to the municipal and corporate level and secure effective policy
implementation, it is necessary to pay attention to vertical interlinkages and develop
monitoring indicators for SCP at each hierarchical level. While referring to the groups
of indicators for the SDGs being promoted by the United Nations Statistics Division,indicators systems should be developed that accurately take into account the directionof SCP. In doing so, it is possible to develop indicator systems that (1) are capable ofexpressing the decoupling of negative impacts, such as environmental load andresource consumption, and wellbeing caused by social economic development inindicators, (2) have indicators related to environmental capacity, such as carbon,
material, and ecological footprints, (3) can be compared with other countries,
companies, municipalities, and individual projects, and (4) are flexible with items to bemeasured so as to conform to development situations and the severity of problems tobe solved in the target region/time, based on existing SCP indicators (e.g., Watson etal., 2010) and sustainable development indicators (e.g., a review of 1790 indicators,
Tasaki et al., 2010). For (3) a relative evaluation should be conducted with physicalquantities and indicators in monetary units that have been economically evaluated(Tsurumi and Managi, 2017).
As an example in (4), although it is meaningless to measure reductions in the
consumption of resources in developing countries that have not yet achieved aminimum standard of living, indicators that place focus on perspectives, such as global
warming, resource consumption, and vulnerability/resilience, can also be applied indeveloped and emerging economies that have “graduated” from a state of extreme
poverty and famine. Wellbeing in (1) is expected to shift is expected from a stage ofusing GDP as an indicator focusing on economic growth, to a stage of using indicatorsthat consider degrees of happiness and satisfaction.
[Related SDGs: 12.6, 12.8, 17.19]

3.3 Emerging trends encourage environmental policies and corporate actions such as theParis Agreement and ESG investment. (Opportunity 3)
There are emerging trends that encourage the development of environmental policies,
such as the development of the Paris Agreement and ESG (Environment, Social,
Governance) investment. A result of the Paris Agreement is the necessity to accelerate
global movements towards decarbonization. Active participation by developing countries,
13especially emerging economies, is inevitable and the recognition that taking up
environmental measures will increase competitiveness in the market is expanding. In thisway, the aptly-named “game changer” phenomenon is already occurring and there ispotential for it to accelerate these movements in the future. A growing number of companies
are involved in advancing SCP, the SDGs and ESG with increasing popularity across theglobe. In order to ensure such actions are effective, it is important to create KPIs (Key
Performance Indicators) and incorporate them into PDCA (Plan-Do-Check- Act) cycles, aswell as disclose such actions accordingly[Related SDGs: 12.2, 12.5, 12.b, 13.1-3, 7.2-3, 7.a, 9.4]
3.4 The concepts of circular economy and sustainable value chain have become widely
recognized as important. (Opportunity 4)
The concept of circular economy involves material selection that makes little or no
distinction between primary materials and secondary (recycled) materials. Moreover, it
promotes improvements in the quality of secondary materials, components and products bymeans such as RRRDR (Remanufacturing, Refurbishment, Repair and Direct Reuse) as wellas through industrial symbiosis. Value chain management seeks to enhance product designs
to better suit consumer lifestyles while enhancing overall environmental efficiency across the
lifecycle.
Basic policies for product lifecycle design are as follows.
Material selection and product design based on the concept of “circular
economy”
There are no differences in primary materials and recycled materials. Bothrequire seamless material quality standards and seamless material selection
and procurement mechanisms in product design.
Product design in response to changes in values and changes in usage
Product design must correspond to changes, such as temporary use and productsharing. For example, equipment for key lock systems through information
terminals and equipment for guidance systems for product use methods for users
unfamiliar with products.
Design balancing uniform production and individualized consumption
Balanced design for both efficient production (mass production, uniformity) thatdrastically improves lifecycle efficiency focused on production and inverse
manufacturing, and personalization dedicated to the individual needs ofconsumers.
RRRDR refers to a cycle in which higher resource value and economic value areretained, in addition to promoting material recycling. For this purpose, it is necessary tocoordinate the consumption stage and resource recycling stage so that used products
are directed to the appropriate route according to the state of the product at theconsumption stage. There are also various types of RRRDR in Asia and the Pacific,
ranging from advanced, manufacturer-led remanufacturing to highly labour-intensive
refurbishment and repair, which shows the importance of the perspective of taking
advantage of existing infrastructure. RRRDR also has an effect of avoiding
environmental pollution problems resulting from waste, such as e-waste issues. It isnecessary to take promotional measures to remove institutional, technical, and market
obstacles to promoting RRRDR.
Promoting industrial symbiosis is also one of keys for circular economy. In Asia-Pacificcountries, there is a sufficient margin for recycling through inter-industrial symbiosis for14steel slag, aluminum dross, and waste, and impacts on the environment and humans
can be reduced by linking waste with water treatment plants, manufacturing of roadbed
materials, soil treatment facilities, and power plants. Additional effects may be generated
if permission is given for the transboundary movement of waste through mitigation
measures and special measures, such as the Basel Convention. Policies related to interindustry symbiosis extend to incentives and regulatory systems, or other policies.
Financial incentives can be programs to address fiscal needs, measures to attract direct
or foreign investment, and the provision of land and infrastructure. Subsidy systems andtax incentives may also be an incentive for industrial symbiosis.
For circular economy, material sorting plays an important role. It is necessary to maintaincurrent labour-intensive way of material sorting and shift them into more environmentallyand socially sustainable manner or to develop sophisticated sorting technologies. It isnecessary to consider ways to use human resources and infrastructure in the informal
sector and reorganize formal systems, since there is a possibility to affect poverty andlabour. Attention must be focused here as well because recycling systems that areoriented to mechanization and advanced sorting may generate additional GHGs.
Therefore, it is desirable to have active policy support from government agencies, rather
than leaving this completely up to the autonomy of companies. Companies in Asia andthe Pacific often do not have much room to afford these actions and cannot allocate
resources to additional management activities. Therefore, it is expected that government
agencies will establish policy frameworks for basic resource productivity management
and offer policy support for circular economy.
Supporting further advancement of these market trends proves to be a promising approachfor SCP policy.
[Related SDGs: 12.2, 12.5, 12.b, 9.4]

3.5 Guideline on designing and tailoring information to promote behavioural shifts is evolving.
(Opportunity 5)
Simple information provision alone has limited power to change consumer behaviours(e.g., SWITCH-Asia, 2014). Recent developments in behavioural economics, etc. haveemphasised new and various ways to provide information and influence consumer choice.
Such insights including tailoring environmental information to guide consumer’s decisions
can be utilised in SCP policies to make them more effective.
It is necessary to devise ways to provide more effective environmental information.
Specifically, as shown in Fig. 10, it is important to display and provide environmental
information in consideration of the flow of information collected by consumers, such as thesource of information (means) that is most important to consumers, contents of informationthat are of interest, and degree of relevance of the information for each decision-making
stage, from the recognition of the necessity of product purchases to the actual purchase of
the product itself.
[Related SDGs: 12.6, 12.8, 4.7]

15

Fig. 10. Framework for the display of environmental information with a focus on decisionmaking stages and information sources

3.6 Product design addressing people’s needs in their local context drives consumer
markets. (Opportunity 6)
A disproportionate focus on product quality can lead to an overconsumption of resources
as well as further diminish consumer satisfaction through putative function fatigue. Productdesign should seek to improve human sufficiency by not only adding new features but also
streamlining and simplification. Such design should cohere throughout the entire productlifecycle without undue emphasis on the optimisation of production processes. Localised
product design is an entry point for SCP to achieve appropriate quality at a reasonable price,
prevent resource overconsumption, and employ local resources.
The fulfilment of people’s needs is one of the most important concepts for achieving SCP.
The means to fulfil basic needs in the Asia-Pacific region and the functions and structuresthat embody those means vary according to geographical and cultural conditions. The
production side should not simply provide a number of product functions; it is also necessary
for the production side to provide product functions that meet the basic needs of consumers
at an affordable price. It is also important to keep in mind the idea of appropriate technology(Hazeltine and Bull, 1999) to bring increases in resource and energy consumption caused by
the introduction of the technology itself down to the bare minimum. In other words, it isnecessary to develop or select technology that meets the consumer needs in each country,
and not just blindly introduce high-functioning and low-priced technology.
In local-oriented designs that correspond to regional diversity, the following two
perspectives are important: (1) perspective of what should be cut from functions andstructures of products in developed countries (concept of subtraction) or what should berecognized as the minimum necessary requirements (concept of addition), and (2) theperspective of improving sufficiency throughout the entire life, not the optimization ofindividual products. The desired quality and quality features of individual products perceived
as common sometimes differ greatly depending on the region. If it is possible to gain an
accurate understanding of the commonly requested quality and reflect this in the productdesign, it will be possible to achieve appropriate quality at a reasonable price and contributeto the maintenance and improvement of resource efficiency by preventing excessive quality.
Support techniques and tools must be developed for core local-oriented designs.
16

If local companies can be deeply engaged in the design, production, and maintenance of
products and parts that are strongly related to local demand, they can contribute to thedevelopment of local technical staff and create employment. However, good quality products
and parts may be procured from other areas from the viewpoint of resource efficiency
depending on the type of product/part. Therefore, local-oriented product design, production,and circulation must be considered as the best mix of intra-regional and extra-regional
systems.
[Related SDGs: 4.4, 8.2, 9.2, 9.2b, 12.a]

3.7 Digitisation technologies have emerged as powerful force for changing society.
(Opportunity 7)
In cases where a “Business-as-Usual Scenario” is applied, where emerging economies in
the Asia-Pacific region follow along the path of economic growth taken by developed
countries, consumption of resources and energy is expected to rise with an increase in thenumber of products owned, making the realization of SCP increasingly difficult.).
On the other hand, in regions where the spread of products and development of social
infrastructures are ongoing, there is potential to achieve leapfrog development (cf. Fong2009). For instance, the IoT (Internet of Things) and AI (Artificial Intelligence) both comprisepromising technologies that effectively link digital opportunities to SCP efforts. Integration ofsuch technologies with renewable energy and appropriate technology, and making data
accessible to users formulate new systems for SCP practices in line with the four strategic
directions of SCP policy. In addition, such technologies can expand stakeholders’ capacities
for changing ways to measure and mainstream SCP implementation.
[Related SDGs: 9.c, 9.b]3.8 Sharing economy can be an entry point linking consumption and production. (Opportunity
8)
With the widespread use of mobile terminals, electronic payment systems, and IoT, it has
become easy for consumers who want others to use unemployed capital and consumers whowant to use them. In SCP policies, cases in which consumers become providers of productservices must be incorporated and encouraged to be in a more sustainable form. There are
more customs of sharing in Asian countries compared with Europe and the United States(Belk, 2010). In Southeast Asia, the percentage of people who are aware of sharing and who
have used sharing is higher than that in Europe and the United States. The penetration of
the sharing economy may increase resource efficiency in the form of increased availability of
products. However, whether the environmental load will decrease as a result of sharing
depends on the lifecycle characteristics of the products to be shared. Promoting sharing
activities and understanding the conditions that such activities can reduce environmentalloads are important areas of SCP policy and CP transformation[Related SDGs: 12.2, 12.5, 12.b, 9.4]
3.9 Urban planning and infrastructure development is crucial to people’s sustainable
lifestyles. (Opportunity 9)
In many cities in emerging economies in Asia, the development and improvement of
infrastructure, such as public transportation, sewerage, and waste disposal, are far from17

sufficient, generating problems, such as traffic congestion, air pollution, and water pollution.
Even if such infrastructure exists, maintenance and operations may not be performed
properly. Further improvement and development of infrastructure is therefore needed toensure societal wellbeing. At the same time, it is necessary to properly combine various
infrastructure and technologies. For example, in areas where it is economically difficult to
expand sewerage systems, methods such as the introduction of distributed energy systems
and decentralized wastewater treatment facilities can be considered.
Consequently, it is necessary to build efficient and innovative infrastructure. Existing gaps
in infrastructure provide opportunities for building low-carbon, resource efficient and inclusive
energy, transportation, and housing systems. Ultimately, effective urban planning can guidea transition to SCP as a social practice aligned with current trends, including decarbonizationand the use of digital technology[Related SDGs: 11.2, 11.3, 9.1, 9.4]
3.10 Implicit rules and customs influence people’s behaviors. (Opportunity 10)
Tacit rules and customs can inhibit people from practicing more sustainable behaviours.
Changing behaviours in a socially acceptable manner is an ongoing direction for SCP policy.
One example is the Cool-Biz campaign of Japan, which encourages lighter dress to alleviate
the discomfort associated with hotter temperatures brought about from efforts to reduce theenergy consumption of air conditioning in offices, trains, and other public spaces. This policy
has been guided by multistakeholder partnerships, including railroad companies, apparelindustries, retail stores, as well as corporate managers, among others, to be effective.
[Related SDGs: 4.7, 12.8]
3.11 SCP-related indigenous/local wisdoms such as “mottainai (regret for wastefulness)” and“sufficiency economy” already exist. (Opportunity 11)
People may not know the word SCP but recognise the orientations of SCP policies in their
daily lives. Conveying key messages of SCP policies in line with such indigenous and local
wisdom and embedding them into SCP policies can improve policy effectiveness. New codesof practice for sustainable lifestyles and businesses should reflect people’s needs andcultural background. Promoting SCP can be benefited from traditional Asian value of lifestytewith shared social responsibility and environmental stewardship. MFCA (Material Flow Cost
Accounting) can be seen as one way to reflect “mottainai” in corporate management
processes.
[Related SDGs: 12.6, 8.4]

3.12 Enhancing regional/local multistakeholder collaboration and partnerships is key tosuccess. (Opportunity 12)
Multistakeholder engagement processes and facilitation mechanisms for good governanceare vital for implementation of policies and enhance ownership of action (For creating
partnership, see a guideline of UNU-IAS & UNESCAP (2018), for example). There has beensignificant progress in promoting and implementing SCP in the region through stakeholder
involvement, through a continuous effort for knowledge sharing and private-public
partnerships. Existing regional policy platforms such as APRSCP, SWITCH-Asia SCP
18

Facility, business entities, expert network such as PECoP-Asia are valuable channels fordriving networking efforts between different SCP-related initiatives[Related SDGs: 17.16-17][Column] Material Flow Cost Accounting as a way to reflect “mottainai”
Companies in developing countries in Asia and the Pacific (if large corporations andtheir subsidiaries are excluded) lack economic strength and find it impossible topromote costly measures only for the purpose of environmental conservation. A
realistic and effective approach is to aim at the simultaneous achievement of theeffective use of resources and improvement of productivity, with international focus onmaterial flow cost accounting (MFCA) as a support tool for companies. However, thecurrent MFCA stipulated in ISO14051 is too complicated for many SMEs in Asia andthe PAsific, which means that it may be difficult to introduce. MFCA does not aim ataccurate cost calculations but is aimed to promote a directional approach to improve
resource productivity and can be effectively utilised even if the calculation results are
not precise. For this reason, it is recommended for companies in developing countries
in Asia and the Pacific to introduce simple methods, such as material balanceschedules, which capture the relationship between the input and output of resourcesof an entire factory by weight and amount. In addition, the gradual and detailed
introduction of methods and management/operations are often more effective than the
introduction of the full version of MFCA from the very beginning. The material balanceschedule can also be used as basic information for making company-wide resource
management activities visible.

19

4.

Other essential elements
contributing to SDG 12

toensuretheabovementioned

opportunities

4. 1 Education and Human Resource Development
Contents incorporated for education and human resources development in the SCP sector
must be different that those in environmental education that are close to nature where one
can learn about environmental conservation, consumer education in which passive
consumption is positioned in production, and knowledge on the current issues described in
Chapter 1. Specifically, it is necessary to include an understanding of transitions in SCP
policies, positioning of consumer behaviour and corporate activities with an overall view of
the relationship between production and consumption, and encouragement of changes inindividual actions, as well as collaborative collective behaviours and socioeconomic systems.
Necessary competency is also important in terms of sustainable competency, i.e. systems
thinking, anticipatory competence, normative competence, strategic competence, andinterpersonal competence (Wiek et al., 2011). It is desirable that double-looped learning
occurs in which the practice of consumer and production behaviour and participation in SCP
promotional activities is carried out to reconstruct people’s thoughts and frameworks.
4.2 Harmonization of standards
The inability of consumers to access information on degradation of the natural environment
and environmental pollution at production sites, child labour and exploitation of labour, or thestate of initiatives on environmental and social problems may actually encourage these
problems. As supply chains become more global, there are cases where it is easy to lose
touch with production and consumption sites, which makes the use of environmental labellingand certification systems even more important. It is desirable to spread the use of BtoC
labelling for energy-saving performance, such as electric products and vehicles, and the
production of sustainable palm oil, as well as BtoB labelling for building owners on theenvironmental performance of commercial buildings. It is not enough for each country to
introduce its own unique labelling and certification system. Unless the methods of display
and certification are unified and there is cooperation in the mutual recognition of systems
between countries, these efforts must be implemented, as the globalized economy will be
unable to deal with these systems. In order to make labelling and certification systems intoeven more effective tools, it is important to provide economic incentives and incorporate theminto procurement systems.
4.3 Sustainable materials management for reducing environmental impacts and material
footprints
In the pollution prevention approach described in Section 2.1, there are many cases inwhich urgent responses to the occurrence of serious environmental pollution are met withindividual regulations. However, in some advanced countries that have reached a stage ofpreventing pollution, there has been a shift to comprehensive management of hazardous
substances and Sustainable Material Management (SMM) and a transition to legal systems
to contribute to material-cycle economies. In individual laws, target substances and life
stages of managed substances are often restricted, which has hindered the management of
substances with similar hazards and the management of hazardous substances acrossmultiple life stages. If management is lacking, necessary management costs are externalized
and incentives to reduce harmful substances are weakened. There are also developed
countries where lock-ins by existing systems prevent a transition to a comprehensive
management system.
For these reasons, emerging economies and developing countries in Asia and the Pacific,
in particular, that can aim to leapfrog in institutional aspects should consider linkages with20

multiple legal systems and (re)design overall management of hazardous substances from asystematic perspective.

Fig. 11. Integrated management of materials and hazardous substances
beyond a single life stage (translated and updated from NIES (2010))

4.4 Beyond the boundary of each country—reducing material footprints globally
In order to reduce the environmental load on the global environment under a globalized
economy, it is necessary for both consumer and producer countries to take actions
appropriate to their respective positions. In developed countries and emerging economies, it
is important to reduce the environmental load (footprint) of the entire global value chain that
supports production and consumption in that country as a matter of course to reduce direct
pollutant emissions and resource consumption in their own countries (In the field of global
warming, calculations for the former are called Scope 1 and calculations for the latter are
called Scope 3. In the area of resource consumption, natural resource input and consumption(Direct Material Input: DMI, Direct Material Consumption: DMC) are used as indicators forthe former, while primary resource input and consumption (Raw Material Input: RMI, Rawmaterial consumption: RMC) are used as indicators for the latter. In the EU’s Circular
Economy Strategy, RMC has been adopted as one indicator for resource productivity,
reflecting the fact that there is a high volume of resources imported that are in a form being
contained in products in Europe.) In an international assessment of health damage from
PM2.5 (Zhang et al., 2017), it has been found that there is more damage to health in othercountries, including China, in consumption, as compared with damages to health occurringother areas in Europe. If the producer country avoids the occurrence of pollution in its own
country and the consumer country plays a role in reducing the environmental load of theentire value chain, there will be more effective reductions of pollutant emissions and resource
consumption on a global scale. Under these roles, each country must make an effort toensure that pollutant emissions and resource consumption on the planet do not exceed
planetary boundaries.
21

5.

Next step: SCP policy development and implementation

The promotion of SCP in Asia and the Pacific, which is home to more than half of theworld’s population, is a high-priority issue, and if successful, can make a significant
contribution to the world and the prosperity of humankind. This policy report contains an
explanation of the backgrounds needed for SCP in Asia and the Pacific, and presents four
directions for future SCP policies and 12 specific opportunities. All of the 12 opportunities
presented in this report indicate promising entry points for SCP policy development andimplementation in the era of the Paris Agreement and the SDGs in Asia and the Pacific.
The 12 opportunities shall be supported through two means. Firstly, it should be linked to
implementation process of the SDGs at local, national, and international levels. Such
implementation obviously promotes the achievement of Goal 12. In order to obtain outcomestackling a wide range of SCP targets, it will be necessary to comprehensively address efforts,
not only to implement initiatives in individual sectors in a silo manner. As the SDGs cover awide range of issues with 17 goals and 169 targets and are recognized and accepted ashistorical, international goals to be achieved by governments and various stakeholders, if theSDGs are effectively utilised with enhanced public private partnerships and systems thinking
is fully introduced to go beyond solving individual issues, the comprehensive implementationof SCP shall be able to be more effectively carried out than ever before. Thus, inter-ministerial
coordination as well as stakeholder consultation process is a key for SCP.
Secondly, it is necessary to have facilitation mechanisms at regional level. Existingregional policy platforms such as APRSCP, SCP regional facilitation mechanisms such as
SWITCH-Asia SCP facility, business entity, expert networks such as PECoP-Asia as well as
leading national and local governments can put forth an effort to network different initiatives
at regional level. Enhancing facilitation mechanisms shall play important roles for accelerated
the achievement of the SDGs.

22

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Design of Policy Package
to Ensure Sustainable Consumption and Production
by Enhancing Efficiency and Sufficiency
Efforts towards sustainable spiral of
consumption and production pattern in Asian region
Efficiency and sufficiency
towards sustainability

Design of policy
package and its impact

Development ofenvironmental
management model
Remanufacturing
Distributed production
Region-oriented products

Activities by various
stakeholders

Impact on theindustrial sector
by consumption
pattern

Intensification of collaboration
between consumption and production

Transition ofConsumer’s behavior
Transition of
citizen’s lifestyle

International cooperation

Setting and implementation ofnational and regional Sustainable Development Goals (SDGs)
centering on Sustainable Consumption and Production25This policy report was written by the members of a research project “Policy Design and
Evaluation to Ensure Sustainable Consumption and Production Patterns in Asian Region”(PECoP-Asia) with a support of the Environment Research and Technology Development
Fund of the Japan Environmental Restoration and Conservation Agency (Project ID: S-16).
PECoP-Asia Research Project website:
http://www.susdesign.t.u-tokyo.ac.jp/s-16/