COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Rio+20: towards the green economy and better governance
Date: 2011-06-20
Institutions: European Commission
Subjects: UN Conference, basic needs, developing countries, economic instrument for the environment, environmental economics, governance, poverty, sustainable development

EUROPEAN COMMISSION 

Brussels, 20.6.2011 
COM(2011) 363 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Rio+20: towards the green economy and better governance 

 
 
 
 
  
 
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Rio+20: towards the green economy and better governance 

1. 

RIO+20: AN OPPORTUNITY THE WORLD CANNOT AFFORD TO MISS 

In  June  2012  all  eyes  will  be  on  Rio  de  Janeiro,  where  twenty  years  after  the  first  "Earth 
Summit",  Heads  of  State  and  Government  will  attend  the  United  Nations  Conference  on 
Sustainable  Development1  (UNCSD  or  "Rio+20").  Rio+20  will  build  on  previous  global 
summits:  the  United  Nations  Conference  on  the  Human  Environment  in  Stockholm  (1972), 
the Conference on Environment and Development ('Earth Summit') in Rio de Janeiro (1992), 
and the World Summit on Sustainable Development in Johannesburg (2002). It also follows 
on  from  the  United  Nations  Millennium  Summit  in  2000  and  the  establishment  of  the 
Millennium Development Goals (MDGs). 

Rio+20 offers a unique opportunity for our mutually interdependent world to secure renewed 
political  commitment  for  sustainable  development. It will assess progress  made and address 
implementation gaps and emerging challenges. It will do so in the context of two intertwined 
themes: "a green economy in the context of sustainable development and poverty eradication" 
and "the institutional framework for sustainable development". 

Rio+20  can  mark  the  start  of  an  accelerated  and  profound,  world-wide  transition  towards  a 
green economy – an economy that generates growth, creates jobs and eradicates poverty by 
investing in and preserving the natural capital offers upon which the long-term survival of our 
planet depends. It can also launch the needed reform of international sustainable development 
governance. 

The  European  Commission  is  determined  to  help  make  Rio+20  a  success.  As  a  basis  for 
further  dialogue  with  EU  institutions,  civil  society,  business  and  countries  globally,  this 
Communication  sets  out  the  Commission's  initial  views  on  potential  concrete  outcomes  for 
Rio+20. It builds on the EU's range of policies pertaining to sustainable development and the 
EU  2020  Strategy,  and  also  takes  account  of  a  public  consultation  launched  in  February 
20112.  

2. 

TAKING STOCK SINCE '92: IMPLEMENTATION GAPS AND EMERGING CHALLENGES 

2.1. 

Sustainable development at international level 

The past decades have witnessed a number of positive global trends. This is most notable for 
income  growth,  for  which  more  than  120  million  people  rose  above  the  "dollar  a  day" 

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2 

www.uncsd2012.org 
http://ec.europa.eu/environment/consultations/un_2012.htm. 

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benchmark between 2000 and 2005. Access to education, healthcare and water has also seen 
improvements. 

The  United  Nations  Framework  Convention  on  Climate  Change  (UNFCCC)  and  the 
Convention  on  Biological  Diversity  (CBD)  launched  at  Rio  in  1992  have  demonstrated  the 
potential of action at global level. The 2010 climate negotiations in Cancún marked progress 
towards new global climate change governance and the objective of limiting climate change 
to less than a 2°C increase. Similarly, the 2010 CBD meeting in Nagoya achieved significant 
progress. There has also been a major increase in scientific information and public awareness 
of environmental issues, in particular climate change, and the participation of civil society in 
global policy-making, not least thanks to improved internet communication. 

Over  the  past  twenty  years,  a  number  of  developing  countries  have  now  become  major 
economic and political players. As a result, a new balance of power and influence has started 
to  emerge,  entailing  new  roles  –  which  will  also  require  the  acceptance  of  new 
responsibilities.  

Despite positive developments, considerable implementation gaps and challenges remain, and 
these will have to be addressed as part of the Rio+20 agenda. Around 1.4 billion people still 
live in extreme poverty (a large part of them in Sub-Saharan Africa and South-Asia) and one 
sixth  of  the  world’s  population  is  undernourished.  Several  of  the  Millennium  Development 
Goals (MDGs) are severely off-track. For instance, for the MDG on sanitation, only half of 
the  developing  world’s  population  uses  improved  sanitation.  Progress  towards  the  MDGs  is 
very uneven geographically with some regions lagging behind others; and no single MDG has 
been achieved in any one fragile state. Efforts to address these problems have been hindered 
by the recent economic crisis and rising food prices that have increased the number of people 
living in poverty. 

Many  environmental  challenges  have  not  been  solved  and  have  become  more  acute. 
Increasing  demand  for  resources  (such  as  land,  water,  forests,  ecosystems)  has  led  to 
increasing  depletion  and  degradation,  and  biodiversity  loss  and  deforestation  continue  at  an 
alarming rate. Scarcities of material resources, as well as access to these resources, are also 
becoming issues of global concern. Global greenhouse gas emissions continue to rise, fuelled 
by land-use changes and growing demand for fossil fuels. Furthermore, the impacts of climate 
change  (such  as  changing  precipitation  and  sea  level  rise)  can  further  multiply  existing 
environmental  problems.  The  depletion  and  pollution  of  water  resources  and  the  marine 
environment pose increasingly serious problems, and water scarcity could affect one-third of 
the  world  population  by  2025.  Desertification  and  land  degradation  impact  a  number  of 
developing  countries  whose  economies  largely  depend  on  agriculture  and  subsistence 
farming. Exposure to hazardous substances (such as pesticides hazardous waste) continues in 
developing countries and emerging economies, despite progress in implementing international 
conventions.  Many  of  these  environmental  problems  are  not  stand  alone  issues,  but  are 
mutually related and inter-dependent. 

Future economic growth is likely to be fastest in emerging economies, and if well managed, 
can  help  lift  people  out  of  poverty.  However,  the  continuation  of  current  consumption  and 
production  patterns  in  many  countries  around  the  world  will  increase  the  use  of  natural 
resources,  accelerate  environmental  degradation  and  worsen  climate  change.  Environmental 
pressures and impacts will be exacerbated by an increasing population (expected to rise to at 
least  9  billion  in  2050),  urbanization  and  social  changes  (such  as  an  additional  1.2  billion 
people joining the "middle class" population in emerging economies).  

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2.2. 

Sustainable Development in the EU  

Over  the  past  decades,  sustainable  development  has  been  promoted  by  a  number  of  EU 
policies.  For  example,  the  EU  has  adopted  binding  climate  targets  together  with  the  EU 
Emissions Trading Scheme, as well as range of legislative instruments on biodiversity, waste 
management,  water  and  air  quality.  This  has  encouraged  the  growth  of  EU  eco-industries, 
which now correspond to over 2.5% of EU GDP and provide jobs to over 3.4 million people. 
In  2001  the  EU  adopted  an  EU  Sustainable  Development  Strategy  (EU  SDS)  which  was 
renewed in 2006. 

Since the most recent EU SDS report in 2009, progress towards achieving sustainability in the 
EU has been assessed in various ways, including sustainability indicators and the State of the 
Environment Report of the European Environmental Agency . These publications show that 
while progress has been made many challenges still exist, in particular to make growth more 
sustainable.  

A key policy development has been the adoption of the Europe 2020 Strategy in 2010. This 
aims to transform the EU into a knowledge-based, resource efficient and low-carbon economy 
and provide a sustainable response to the challenges facing the EU up to 2050. The Strategy 
seeks  to  mainstream  and  reinforce  the  role  of  sustainability  in  policy  development  by 
establishing  the  mutually  reinforcing  priorities  of  smart,  sustainable  and  inclusive  growth 
which are driven by five headline targets and seven flagship initiatives (see Annex). 

Many  of  these  flagship  initiatives  are  of  direct  relevance  for  this  Communication.  For 
example,  the  flagship  initiative  on  resource  efficiency  aims  to  decouple  the  use  of  natural 
resources  from  economic  growth  and  envisages  a  range  of  new  policy  measures  including 
action on raw materials, energy efficiency, biodiversity, as well roadmaps to decarbonise the 
economy, energy and transport. It also advocates the stepping up of the use of market-based 
instruments,  phasing  out  environmentally  harmful  subsidies  and  the  "greening"  of  tax 
systems.  

Progress on improving resource efficiency and the other targets and flagship initiatives will be 
monitored within the governance framework of the Europe 2020 Strategy and the "European 
Semester". This will bring together the input of sectoral Councils, the Member States' national 
reform  programmes,  the  opinions  of  the  Commission  as  well  conclusions  of  the  European 
Council. This will result in a strengthened mechanism to deliver greater integration and policy 
coherence in favour of the environment and sustainable development.  

To assess progress on the implementation of the EU SDS, the European Commission through 
its statistical office Eurostat, the European Environmental Agency and others will continue to 
provide  statistical  information  and  indicators  that  allow  sustainability  to  be  measured  and 
reported, also in the context of Europe 2020 Strategy.  

Rio+20 will be a defining moment for sustainable development, both in the EU and globally. 
Its  outcome  will  inspire  the  EU's  strategy  and  actions  for  sustainable  development,  and  in 
particular help further shape the EU Europe 2020 strategy as an effective tool for delivering 
on sustainable development. 

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3. 

TOWARDS THE GREEN ECONOMY AND BETTER GOVERNANCE 

3.1. 

Enabling the transition 

Twenty  years  after  the  Rio  Summit,  the  world  is  still  facing  two  major  and  interlinked 
challenges: meeting the demands for better lives for a global population set to grow by over a 
third by 2050, and addressing environmental pressures that if not tackled, will undermine the 
world's ability to meet those demands. 

Responses to these challenges will not come from slowing growth, but rather from promoting 
the  right  kind  of  growth.  There  are  compelling  reasons  to  fundamentally  rethink  the 
conventional  model  of  economic  progress:  simply  working  at  the  margins  of  an  economic 
system that promotes inefficient use of natural capital and resources, will not be sufficient to 
bring about change. What is needed is an economy that can secure growth and development, 
while  at  the  same  time  improving  human  well-being,  providing  decent  jobs,  reducing 
inequalities,  tackling  poverty  and  preserving  the  natural  capital  upon  which  we  all  depend. 
Such  an  economy  –  a  green  economy  –  offers  an  effective  way  of  promoting  sustainable 
development,  eradicating  poverty  and  addressing  emerging  challenges  and  outstanding 
implementation gaps. 

Moving towards a green economy necessitates preserving and investing in the assets of key 
natural resources. This is essential for all economies, but applies in particular to developing 
countries, which have the opportunity to grow their economies, by building on the sustainable 
management  of  their  natural  capital.  It  also  means  making  use  of  low-carbon  and  resource 
efficient solutions and stepping up efforts to promote sustainable consumption and production 
patterns.  All  this  involves  establishing  the  right  regulatory  frameworks,  creating  strong 
incentives  for  markets  and  innovation,  leveraging  financial  resources,  and  promoting 
entrepreneurship and greater private sector involvement. It also involves the proper valuation 
of  natural  capital,  and,  in  more  general  terms,  a  revision  of  the  way  in  which  we  measure 
growth and progress. 

In  a  green  economy  many  challenges  can  be  transformed  into  economic  opportunities,  not 
only  reversing  negative  environmental  trends,  but  also  driving  future  growth  and  jobs.  For 
instance,  experience  shows  that  market-based  approaches  such  as  emissions  trading  are  not 
only  cost  effective  tools  to  address  environmental  problems  but  are  also  a  source  for 
investment.  

The  green  economy  offers  opportunities  to  all  countries,  irrespective  of  their  level  of 
development and the structure of their economies. While in many cases investments to move 
towards a green economy can result in short-term win-win solutions, in other cases a medium 
term  perspective  will  be  needed,  and  transitional  costs  will  have  to  be  addressed,  including 
through  "pro-poor"  policies.  Even  though  there  is  no  "one-size-fits-all"  model,  there  are 
common challenges and solutions, and countries will benefit from exchanging experience and 
improved international cooperation. 

At  the  same  time,  moving  towards  the  green  economy  does  not  start  from  zero.  There  are 
already a number of strategies in place that countries can build on, such as: climate change, 
biodiversity,  sustainable  consumption  and  production,  research  and  innovation,  all  of  which 
can contribute to enabling a green economy. Future national and international green economy 
strategies should build on and strengthen these, as is happening in Europe 2020 Strategy, and 
recently in the roadmap for moving to a competitive low carbon economy by 2050. 

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International  organisations,  including  the  United  Nations  Environment  Programme  (UNEP) 
and  the  Organisation  for  Economic  Cooperation  and  Development  (OECD)  are  developing 
Green  Economy  and  Green  Growth  Strategies.  The  International  Labour  Organisation  is 
developing  programmes  for  green,  decent  jobs.  The  G8  and  G20  are  also  increasingly 
engaging in the green economy agenda. In Cancún, the Parties to UNFCCC agreed that that 
all  countries  should  develop  low-carbon  development  strategies,  consistent  with  sustainable 
development. 

Following from the above initiatives, to achieve the transition to a green economy we need to 
address three interlinked policy dimensions: 

(1) Investing in the sustainable management of key resources and natural capital ("what") 

(2) Establishing the right market and regulatory conditions ("how") 

(3) Improving governance and private sector involvement ("who") 

In the next sections these three dimensions will be analysed in more detail, as a framework for 
targeted action and investment.  

3.2. 

Investing in the sustainable management of key resources and natural capital 

Resources such as water, energy, land, forests as well as materials constitute the foundations 
of  any  economy  –  and  in  particular  of  the  green  economy.  The  livelihoods  of  many  people 
across the world depend on them, especially in developing countries, where the lack of access 
to quality resources, as well as insufficient knowledge on how to  manage them  sustainably, 
are important underlying causes of poverty. There are many telling examples of how access to 
sustainably  managed  resources  can  draw  people  out  of  poverty.  Thus,  the  resource  areas 
outlined below could become the green economy's key growth markets, underpinning future 
economic  development,  the  creation  of  jobs  and  the  eradication  of  poverty,  in  particular  in 
developing countries. 

Water  is  one  of  the  most  valuable  resources,  fundamental  to  life  and  health,  but  also  to  the 
growth of many economic sectors such as agriculture, manufacturing and energy production. 
The sustainable management of water is crucial in the efforts to eliminate poverty, since poor 
people’s lives are closely linked to access to water and its multiple uses and functions. Water 
also has strong implications for regional relations, peace and security. Clearly, policies have 
to be strengthened to improve water access, quality and efficiency. 

Access to energy services is a fundamental prerequisite for social and economic development. 
Access  to  energy  is  also  a  key  ingredient  to  poverty  eradication.  In  developing  countries, 
more than 1.4 billion people currently lack access to electricity and 2.7 billion people rely on 
traditional  use  of  biomass  for  cooking.  Many  regions  in  the  developing  world  have  a  huge 
potential for renewable energy, in particular where extensions of the electricity grid are not 
economical. Developing renewable energy should go hand in hand with measures to enhance 
energy efficiency and reduce the dependency on fossil fuels. 

Marine  resources  are  a  source  of  food  and  economic  prosperity.  The  fisheries  sector  is 
essential  for  the  economic  development  and  livelihood  of  millions  of  people  around  the 
world,  particularly  in  developing  countries.  Oceans  and  seas  are  an  essential  component  of 
the  earth's  ecosystem  and  play  a  key  role  in  moderating  climate  change.  Coral  reefs  and 
mangrove forests are not only a store of carbon and a source of biodiversity; they also protect 

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coastal areas against flooding, thus reducing disaster risks. However, the marine environment 
faces  several  threats:  the  depletion  of  fish  stocks,  biodiversity  loss,  marine  litter,  waste  and 
pollution including acidification. Many issues are trans-boundary and need to be addressed at 
the international level. 

A key challenge for agriculture is to be able to feed 9 billion people by 2050 without further 
degrading and polluting land. The sustainable use of land and agriculture will be a cornerstone 
of the green economy. Current farming practices represent over 70% of the world's freshwater 
resources  and  contribute  to  over  13%  of  greenhouse  gas  (GHG)  emissions.  Sustainable 
agriculture  can  substantially  increase  yields,  especially  on  small  farms.  Even  though  many 
sustainable  land  management  techniques  are  available,  investment  in  these  is  not  sufficient. 
Land degradation has a direct link to agriculture, and has a direct effect on some 1.5 billion 
people, including 42 % of the world’s poor. Land degradation is a global issue, not only in 
arid  and  semi-arid  regions,  and  requires  a  global  response.  Good  governance  is  essential  to 
address  these  problems,  through  respect  for  land  rights  and  ownership,  including  from 
communities and indigenous peoples. All these aspects must be addressed in order to ensure 
the sustainable supply of food.  

Forests are  the  basis  for  the  livelihoods  of  millions  of  people, many  of  whom  live  in  the 
tropics and belong to poorer segments of society. Furthermore, forests are a crucial part of the 
soil,  water  and 
earth's  ecosystem,  providing functions 
biodiversity. However,  the  global  rate  of  deforestation  is  still  alarmingly  high  and  has 
significant  impacts  on  global  climate  change  and  biodiversity.  Emissions  from  tropical 
deforestation,  forest  and  peat  degradation  are  currently  estimated  to  be  15%  of global 
CO2 emissions. Forests  are  likely  to  become  increasingly  important  in  a  green  economy  as 
sources of new materials such as bio-based plastics and in renewable energy strategies. In this 
context the conservation and sustainable management of forests is crucial.  

such  as  protection  of 

Sustainable land use, agriculture, forests, water and the oceans are underpinned by ecosystems 
and biodiversity, which determine the longer term resilience and health of the environment. 
There is a growing awareness of the benefits of ecosystem services for businesses and society 
at large3, and of the potential of investing in natural capital for the green economy.  

Waste  can  be  a  valuable  resource,  and  if  not  properly  managed  causes  environmental  and 
health risks. Good waste management minimises environmental impacts such as green house 
gas  emissions,  promotes  efficient  use  of  resources,  and  provides  a  new  source  of  recycled 
materials.  The  economic  potential  of  waste  management  is  growing  in  many  regions  of  the 
world, offering important business and job opportunities. It is crucial to ensure that these jobs 
are  decent,  in  particular  in  terms  of  working  conditions.  As  developing  countries  grow 
economically,  there  are  increasing  needs  and  economic  opportunities  for  better  waste 
management. Hazardous waste and chemicals also remain an area of particular concern, both 
nationally and globally.  

The transition towards a global green economy will need reinforced global policies based on 
these areas, and Rio+20 should offer a platform to help achieve this.  

3 

The Economics of Ecosystems and Biodiversity for Business – "TEEB for Business" 

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3.3. 

Establishing the right market and regulatory conditions 

A  number  of  market  and  regulatory  conditions  need  to  be  put  in  place  to  enable  and  direct 
growth  in  the  above  areas.  Such  enabling  conditions  are  not  only  key  to  promote 
environmental  objectives,  but  also  to  ensure  predictability  and  a  level  playing  field  for 
business.  They  also  provide  a  sound  basis  for  investments  and  fostering  eco-innovation 
through new technologies and new ways of working.  

Regulatory instruments will play an important role in greening the economy both nationally 
and  internationally.  Regulatory  instruments  should  be  combined  with  market-based 
instruments (such as taxes, tradable permits and environmental subsidies) which are flexible 
and cost-effective tools that can help achieve combined economic, social and environmental 
objectives.  Fiscal  reforms  that  shift  tax  burdens  from  labour  to  environmental  impacts  and 
energy  can  create  win-win  outcomes  for  employment  and  the  environment.  Cap  and  trade 
systems,  such  as  the  EU  Emissions  Trading  Scheme,  have  proven  to  be  effective  markets 
instruments. Other effective schemes include fiscal incentives for SMEs, water charges, eco-
taxes, and feed-in tariffs. Payments for ecosystem services are already being applied in some 
countries  and  reflected  in  ongoing  negotiations  on  Reducing  Emissions  from  Deforestation 
and Forest Degradation (REDD). 

Environmentally  harmful  subsidies  are  a  major  obstacle  for  a  greener  economy.  They 
perpetuate  unsustainable  practices  and  direct  financial  resources  from  needed  green 
investments.  Momentum  is  building  to  address  them.  In  2009,  the  G20  committed  to 
that  encourage  wasteful 
rationalize  and  phase  out 
consumption. This commitment will be revisited in 2011. In 2010, Parties to the Convention 
on  Biological  Diversity  committed  to  eliminate,  phase  out  or  reform  subsidies  harmful  to 
biodiversity by 2020. 

inefficient  fossil  fuel  subsidies 

To enable the transition to a global green economy, large scale financial resources will have 
to mobilized. This will require action by all countries, international organisations and banks. 
UNEP estimates that the scale of global investments needed could be to the order of 2% of 
global GDP per year in the period up to 2050. This will require a paradigm shift in approaches 
to  financing,  enabling  countries  to  make  use  of  innovative  public  and  private  solutions. 
Reliance on public  funds  alone  will not be sufficient – rather, public financing will have to 
catalyse  and  leverage  much  greater  private  investment.  Incentives  will  have  to  be  put  into 
place to encourage private green investments, and ways of channelling equity, insurance and 
pension funds towards sustainable development can be applied on a much greater scale. At the 
same  time,  both  the  national  public  sector  and  international  public  financing  will  have 
important roles to play in laying down conditions to help reduce risks for private investment 
and to ensure fair and equitable approaches to investment. In addition, access to finance and 
venture capital coupled with a favourable regulatory environment is crucial to stimulate eco-
innovation, environmental technologies and green SMEs. 

Without  the  necessary  skills  and  know-how,  a  transition  to  a  green  economy  will  not  be 
possible. At the same time, it must be ensured that new jobs will be "decent jobs" including 
guarantees of rights at work, social protection and social dialogue. Economic policies need to 
be accompanied by labour policies to equip employees with new skills and help create new 
job opportunities. Of the world's estimated 211 million unemployed people in 2009, nearly 40 
per  cent  are  between  15  and  24  years  of  age,  and  a  range  of  measures  need  to  be  taken  to 
provide opportunities for youth. In addition, many of the obstacles hindering the transition to 

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a  green  economy  and  a  more  sustainable  future  can  only  be  removed  through  greater 
scientific and research cooperation.  

Sustainable  patterns  of  supply  and  demand  at  international  level  can  be  supported  by 
enhancing mutual supportiveness between trade and sustainable development. This includes 
maintaining an open and non-discriminatory multilateral trading system, and ensuring that no 
country  should  be  prevented  from  taking  measures  to  promote  sustainable  development, 
provided  that  such  measures  do  not  constitute  arbitrary  or  unjustifiable  discrimination,  or  a 
disguised  restriction  on  international  trade.  Mutual  supportiveness  can  also  be  promoted  by 
reducing  or  eliminating  tariff  and  non-tariff  barriers  for  environmental  goods,  technologies 
and  services,  as  well  as  environmentally-friendly  or  fair  trade  products.  In  addition,  as 
sustainability  assurance  schemes  and  corporate  social  responsibility  practices  expand,  the 
development  of  international  guidelines  and  standards,  certification schemes  and  labels,  can 
provide economic, environmental and social benefits. International measures to combat illegal 
trade in environmentally sensitive goods (such as wildlife, hazardous substances and natural 
resources) need to be strengthened – a good example of what can be done are the Voluntary 
Partnership  Agreements  that  the  EU  is  negotiating  in  the  context  of  its  initiative  on  Forest 
Law Enforcement Governance and Trade (FLEGT). The inclusion of sustainability provisions 
as part of multilateral and bilateral trade agreements also need to be promoted. 

Ensuring and measuring progress requires comparable metrics and indicators to be in place. 
A number of organisations, such as the OECD, have been working to provide various forms 
of indicators that can reflect the state of the environment and natural assets, well being and the 
quality  of  life.  These  indicators  should  be  used  alongside  Gross  Domestic  Product  (GDP). 
However,  only  some  of  these  indicators  have  so  far  been  used  widely  in  communicating 
policy needs, such as CO2 intensity and the Human Development Index. Agenda 21 already 
requested  governments  to  develop  sustainable  development  indicators  and  environmental 
accounting.  However,  progress  has  been  slow  and  uneven.  Rio+20  should  promote  the 
transparency  of  national  reporting  and  agree  on  the  use  of  environmental  accounting  and 
robust  indicators  at  national  and  at  global  level  in  order  to  measure  this  wider  sense  of 
progress in addition to GDP. 

3.4. 

Improving governance and private sector involvement 

Governance  structures  are  crucial  to  help  deliver  sustainable  development,  green  our 
economies  and  eradicate  poverty.  However,  it  is  widely  recognized  that  current  governance 
structures need significant reform. Four broad tracks of reform need to be addressed. 

There is a need to reinforce and mainstream sustainable development governance within the 
UN  system,  inter  alia  by  enhancing  coherence  and  policy  integration  between  the  activities 
carried out under the economic, social and environmental pillars. Within the UN, a number of 
efforts  are  ongoing,  including  improved  inter-agency  mechanisms  and  as  part  of  the 
“Delivering  as  One"  initiative  that  seeks  to  promote  UN-wide  coherence  in  the  areas  of 
development, humanitarian assistance and the environment. Also, cross-cutting issues such as 
climate  change  call  for  further  mainstreaming.  Such  processes  should  be  reinforced.  While 
reinforcing  international  governance  for  sustainable  development  is  crucial,  corresponding 
regional, national and local structures also need attention. 

Compared  to  global  economic  structures  international  environmental  governance  is  weak. 
This  is  due  to  institutional  fragmentation,  a  lack  of  accountability  for  implementing  agreed 
policies, the lack of a strong and authoritative voice within the global governance system, as 

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well as a lack of human and financial resources. In addition, the new roles and responsibilities 
of emerging economies are not sufficiently defined. Over the past decade, attempts to improve 
international environmental governance have been made – most recently as part of high-level 
consultative group under the aegis of UNEP (Nairobi-Helsinki process) – but making tangible 
progress has so far proved difficult. 

International economic and social governance is addressed by a number of institutions. The 
International  Financial  Institutions  (such  as  the  World  Bank  Group  and  the  International 
Monetary  Fund)  as  well  as  regional  development  banks  (such  as  the  Asian  Development 
Bank, the Inter-American Development Bank, the African Development bank, the European 
Bank for Reconstruction and Development and the European Investment Bank) play a central 
role  in  world  economic  policies  and  actions.  The  role  of  the  World  Trade  Organisation  in 
regulating global trade is essential. Furthermore, institutions such as the International Labour 
Organisation and other UN bodies play roles in shaping employment and social issues. Each 
of these will have to play a role in greening global economy.  

Agenda  21  and  the  Johannesburg  Plan  of  Implementation  stress  the  important  role  of  non-
state actors (the "Major Groups") which include indigenous people, women, youth, workers, 
farmers,  local  governments,  the  scientific  community,  business  and  industry,  and  NGOs. 
However,  their  role  and  impact  has  been  limited  in  scope  and  needs  strengthening.  In 
particular,  boosting  the  participation  of  business  will  be  essential.  In  a  number  of  cases 
business  is  already  committing  to  greening  their  operations,  such  as  in  the  food,  drink  and 
chemical  industries.  This  needs  to  be  taken  further  through  more  dynamic  public/private 
partnerships, new business networks and alliances, as well as financing facilities to accelerate 
green business and innovation. 

4. 

PROPOSED LINES OF ACTION FOR RIO+20 

4.1. 

A framework to deliver results 

To give renewed impetus to sustainable development Rio+20 needs to create a shared vision 
for change, backed by a decision framework for specific action. The main "ingredients" of an 
overall outcome could be envisaged as follows:  

1.  A broad political "rallying call" with a shared, ambitious vision and goals.  

2.  A  set  of  specific  actions  at  international,  regional  and  national  level  -  mapped  out  as  a 

"Green Economy Roadmap".  

3.  A "toolbox" of policy approaches and best practice examples to be used to reach agreed 

objectives.  

4.  A mechanism to promote and monitor overall progress.  

A Green Economy Roadmap can guarantee continued commitment beyond Rio+20, ensuring 
that the agreed vision and goals will be followed through in a systematic manner. It can map 
out  a  range  of  international,  regional  and  national  actions  with  milestones,  indicators  and 
targets, as well as mechanisms to monitor overall progress.  

A Green Economy Roadmap can help all countries to accelerate progress towards the green 
initiatives  and  respecting  national  differences.  The 
economy,  building  on  existing 

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establishment  of  strategies  for  greening  the  economy  as  part  of  the  overall  economic  and 
development policies and plans of countries will be essential. Such strategies – to be designed 
"bottom-up"  –  should  contain  objectives  and  timelines  for  action  at  national  and,  where 
appropriate,  regional  levels.  Actions  should  build  on  existing  efforts  and  could  be 
incorporated  into  national  economic  and  development  strategies,  also  bringing  together  low 
carbon  strategies  and  sustainable  consumption  and  production  plans.  Where  needed,  donor 
countries  and  international  organisations  could  provide  assistance,  in  line  with  national 
development strategies. In designing specific actions, countries would be able to make use of 
a "toolbox" of best practice policy approaches.  

However,  national  efforts  alone  will  not  be  enough  to  green  the  global  economy.  As  many 
challenges require a global and regional response, the Green Economy Roadmap should also 
include actions at global and regional level.  

To  monitor  progress  towards  a  green  economy,  the  identification  and  development  of  key 
indicators  and  a  globally  agreed  system  for  environmental  and  social  accounting  to 
supplement  current  economic  accounting  will  be  essential.  This  would  build  on  existing 
initiatives  such  as  the  international  system  for  integrated  environmental  and  economic 
accounting (SEEA), the UNDP (Human Development Index) and the OECD (Measuring the 
Progress  of  Societies).  The  EU's  planned  regulatory  framework  for  environmental  accounts 
could also serve as an example. 

Building  on  the  policy  dimensions  outlined  in  section  3  ("what",  "how"  and  "who")  the 
following sections propose an initial set of specific actions, that would form part of the Green 
Economy Roadmap.  

4.2. 

Action on resources, materials and natural capital  

Rio+20 needs to renew commitment to promote sustainable water. This could be achieved by 
establishing  international  partnerships  on  water.  These  could  build  on  and  expand  the  EU 
Water  Initiative,  which  has  contributed  to  improved  water  management  and  water 
governance, but giving greater emphasis to economic aspects and the greater engagement of 
business.  International  river  basin  management  also  needs  to  be  addressed,  in  particular 
within trans-boundary river commissions.  

Partnerships could also be launched to increase energy access, energy security and promote 
renewable  energy  and  energy  efficiency.  These  could  build  on  existing  actions  such  as  the 
EU-Africa Energy Partnership (AEEP), the EU Regional Investment Facilities, the EU Africa 
Infrastructure  Trust  Fund,  the  ACP  Energy  Facility  and  the  Global  Energy  Efficiency  and 
Renewable Energy Fund (GEEREF), which could provide experiences of leveraging private 
investment for such partnerships. 

To strengthen protection of the marine environment and oceans, those states which have not 
yet  done  so  should  be  encouraged  to  ratify  the  UN  Convention  on  the  Law  of  the  Sea 
(UNCLOS). There is a need for new initiatives for the protection and conservation of areas 
beyond  national  jurisdiction  (the  "high  seas  and  the  deep  sea  bed")  for  instance  through  an 
implementing  agreement  under  UNCLOS.  To  help  conserve  marine  biodiversity  in  these 
areas, an agreement should establish multi-purpose marine protected areas and ensure access 
to the fair and equitable sharing of benefits derived from the utilisation of genetic and other 
resources.  It  should  also  establish  surveillance  and  enforcement  mechanisms.  Special 

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attention should also be given to develop a global action programme to combat marine litter 
and pollution.  

Activities to promote sustainable agriculture, land-use and food security need to be put into 
place.  This  should  include  strengthening  existing  initiatives  on  sustainable  agriculture, 
building  on  multilateral  actions  (such  as  the  FAO),  regional  activities  (such  as  on  organic 
farming)  as  well  as  business  initiatives.  In  addition,  international  partnerships  on  food 
commodities  could  be  established  to  make  the  consumption  and  production  of  food 
commodities  more  sustainable.  Given  that  agriculture  depends  on  the  quality  of  land,  work 
should  be  strengthened  to  improve  land  quality  and  to  combat  desertification.  This  could 
include  launching  a  global  economic  valuation  of  the  costs  and  benefits  of  improving  land 
quality. Initiatives could also include giving further impetus to the "Global Soil Partnership", 
as well as implementing services for global land use monitoring, as part of the Global Earth 
Observation System of Systems (GEOSS).  

Partnerships  with  governments,  civil  society  and  the  private  sector  can  also  help  promote 
sustainable forest management and combat deforestation. Such partnerships could build on 
the successful approach of FLEGT (Forest Law Enforcement Governance and Trade) and on 
the initial experiences of REDD+.  

The time is ripe to establish a more robust and coherent international regime on chemicals 
and  hazardous  substances  and  Rio+20  could  launch  a  process  to  achieve  this.  This  would 
build  on  previous  commitments,  such  as  the  Strategic  Approach  to  International  Chemicals 
Management  (SAICM)  as  well  experience  gained  from  the  EU  approach  to  managing 
chemicals. A regime – possibly in the form of a framework convention – should be guided by 
the Johannesburg target, according to which by 2020 chemicals should be used and produced 
in ways that do not lead to significant adverse effects on human health and the environment. 
The regime should take account of the Global Chemicals Outlook currently under preparation 
by UNEP and work underway on financing options for assisting developing countries to meet 
the  challenge  of  a  globalising  chemicals  and  waste  industry.  The  regime  should  include 
criteria  to  identify  chemicals  and  substances  of  global  concern,  as  well  as  a  framework  for 
assessing substances. 

All  these  challenges  will  require  unprecedented  level  of  scientific  and  technological 
cooperation at the global level, and a mechanism for global science and research cooperation 
on societal challenges of global importance (e.g. resource constraints, climate change, oceans) 
should be put in motion. 

4.3. 

Providing economic instruments and financing and investing in human capital 

Rio+20  should  encourage  countries,  in  particular  industrialised  and  emerging  economies,  to 
develop  domestic  and  regional  carbon  emission  trading  schemes  with  a  view  to  reducing 
emissions at least cost, and as building blocks of a future international carbon market. Such 
instruments may also play an important role in generating innovative finance.  

In  addition,  Rio+20  should  launch  a  coordinated  set  of  actions  by  countries  to  identify  and 
phase  out  environmentally  harmful  subsidies,  accompanied  by  targets  and  deadlines.  The 
G20 commitment to address fossil fuels subsidies could serve as one specific example. Such 
an  initiative  would  make  use  of  guidelines  and  good  practice  examples  of  how  harmful 
subsidies have been successfully removed in the past.  

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To  direct  and  leverage  funds  for  the  green  economy,  Rio+20  should  recommend  to 
consolidate  and  strengthen  existing  financing  strategies  and  facilities,  or  establish  new 
public-private financing schemes as needed. Development organisations (such as UNDP) and 
International  Financial  Institutions  (such  as  the  World  Bank  and  other  multilateral 
development banks, the European Investment Bank, the Global Environment Facility), should 
play  a  strong  role,  with  a  commitment  to  establish  green  economy  financing  strategies  that 
can  lead  to  demonstrable  results.  Private  banks,  insurance  companies  and  pension  funds 
should  also  play  their  part.  An  important  focus  of  these  financing  facilities  and  schemes 
should be to assist Least Developed Countries as well as SMEs.  

In  developing  countries,  Official  Development  Aid  (ODA)  will  continue  to  represent  a 
significant  source  of  investment.  The  EU  remains  committed  to  raise  the  volume  of  aid  to 
0.7% of Gross National Income (GNI) by 2015; currently the EU accounts for about 58% of 
global aid. ODA will continue to be available and can help implement national and regional 
green  economy  strategies  of  partner  countries,  in  the  context  of  their  national  development 
plans.  In  this  context,  programmes  such  as  EU  SWITCH,  which  has  been  promoting 
sustainable  consumption  and  production  practices  in  Asia,  could  be  established  as  part  of 
global action on sustainable consumption and production.  

Rio+20 should establish green skills training programmes in priority areas such as energy, 
agriculture, construction, natural resource management, waste and recycling. As the transition 
to  a  green  economy  will  create  jobs  and  replace  others,  the  re-skilling  of  the  existing 
workforce will be needed. This could include schemes to protect workers interests, providing 
social protection, and formalising informal work, for example building on the "just transition" 
work  of  the  ILO.  Youth  training  programmes  are  also  needed.  These  should  support  the 
school-to-work transition with specific training, and encourage national curricula in secondary 
education to include green skills. 

4.4. 

Improving governance 

Better and more efficient global governance in needed to accelerate global action towards a 
greener  and  more  sustainable  economy,  and  to  eradicate  poverty.  This  should  provide 
opportunities to for all stakeholders to participate and contribute.  

There are several options to strengthen sustainable development governance within the UN. 
One  is  to  reinforce  the  role  of  the  UN  Economic  and  Social  Council  (ECOSOC)  on 
sustainable  development,  with  equal  weight  given  to  the  economic,  social  and  environment 
pillars.  An  alternative  approach  would  be  to  upgrade  the  UN  Commission  on  Sustainable 
Development (CSD) to a more permanent body with extended functions. Such efforts should 
be  geared  up  to  ensure  that  all  relevant  UN  bodies  place  a  much  stronger  emphasis  on 
sustainable  development.  In  a  number  of  cases  improvements  can  be  made  within  current 
mandates.  

Building  on  the  recommendations  of  the  UNEP  Nairobi-Helsinki  process  aimed  at 
strengthening international environmental governance, UNEP needs to be reinforced. This 
could  be  achieved  in  several  ways:  i)  enhancing  UNEP  within  its  current  mandate;  ii) 
strengthening  UNEP  with  new  tasks  and  responsibilities;  iii)  the  creation  of  a  global  multi-
lateral environmental organisation, for example by transforming UNEP into a UN Specialized 
Agency  (such  as  the  ILO).  The  latter  option,  which  would  entail  the  adoption  of  a  legally 
binding  treaty,  would  be  the  most  promising  way  forward  to  improve  international 
environmental governance and make progress towards global sustainable development. At the 

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same time it is clear that all options have advantages and disadvantages, and will have to be 
further discussed.  

As  part  of  the  strengthening  of  international  environmental  governance,  the  work  on 
streamlining  and reinforcing the MEA system needs to be accelerated. While respecting the 
autonomy  of  different  MEAs,  their  administration  can  be  susbstantially  streamlined,  and 
overlaps reduced – thus creating a better platform for securing coherent and focused political 
oversight and leadership, and furthering favourable conditions for green growth. 

Reinforced  capacity  building  for  the  environment  is  needed  within  the  UN.  This  should 
include  strengthening  environmental  expertise  and  green  economy  awareness  within  UN 
country  teams  to  promote  mainstreaming  in  country  programmes,  increasing  the  range  of 
expertise  in  UN/UNEP  regional  offices,  and  developing  a  system-wide  framework  for 
capacity building for MEA implementation. The capacity to monitor the global environment 
should also be strengthened.  

As businesses are  the engines  of  the economy, Rio+20 must strengthen the engagement of 
the private sector. Business and civil society needs to play important roles in the variety of 
partnerships and schemes proposed in this Communication, such as on water, energy, food 
commodities, forests, and financing.  

5. 

MOVING FORWARD 

While progress towards sustainable development has been made in some areas since the 1992 
Rio de Janeiro Summit, we are still facing major global environmental, economic and social 
challenges.  This  Communication  sets  out  the  Commission's  initial  views  as  part  of  the 
preparatory process leading up to Rio+20.  

Rio+20  is  a  significant  opportunity  to  advance  sustainable  development  across  the  world. 
However, it must not simply result in statements of good intent – tangible actions are needed 
to  ensure  that  Rio+20  will  be  a  major  milestone  in  enabling  the  transition  to  the  green 
economy and better governance. The EU is open to discussions with all countries and players 
on how to further shape this agenda in the build-up to Rio+20. All countries and players have 
to work together to make sure that the outcomes of Rio+20 can meet our global challenges. 
Together,  we  need  to  ensure  tangible,  effective  action  that  can  have  real  impact  across  the 
world. 

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Annex 

The Europe 2020 Strategy: Targets and Flagship 

Headline Targets 

(1) 75 % of the population aged 20-64 should be employed;  

(2) 3% of the EU's GDP should be invested in R&D;  

(3) the "20/20/20" climate/energy targets for a 20% reduction greenhouse gas emissions, 20% 
share of renewable energy and 20% energy efficiency improvement should be met (including 
an increase to 30% of greenhouse gas emissions reduction if the conditions are right);  

(4)  the  share  of  early  school  leavers  should  be  under  10%  and  at  least  40%  of  the  younger 
generation should have a tertiary degree; 

(5) 20 million less people should be at risk of poverty. 

Flagship initiatives 

(1) "Innovation Union" to improve framework conditions and access to finance for research 
and innovation so as to ensure that innovative ideas can be turned into products and services 
that create growth and jobs;  

(2) "Youth on the move" to enhance the performance of education systems and to facilitate 
the entry of young people to the labour market;  

(3) "A digital agenda for Europe" to speed up the roll-out of high-speed internet and reap the 
benefits of a digital single market for households and firms;  

(4)  "Resource  efficient  Europe"  to  help  decouple  economic  growth  from  the  use  of 
resources,  support  the  shift  towards  a  low  carbon  economy,  increase  the  use  of  renewable 
energy sources, modernise our transport sector and promote energy efficiency;  

(5)  "An  industrial  policy  for  the  globalisation  era"  to  improve  the  business  environment, 
notably for SMEs, and to support the development of a strong and sustainable industrial base 
able to compete globally;  

(6) "An agenda for new skills and jobs" to modernise labour markets and empower people 
by  developing  their  of  skills  throughout  the  lifecycle  with  a  view  to  increase  labour 
participation and better match labour supply and demand, including through labour mobility;  

(7) "European platform against poverty" to ensure social and territorial cohesion such that 
the benefits of growth and jobs are widely shared and people experiencing poverty and social 
exclusion are enabled to live in dignity and take an active part in society.  

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