Decisions: 2nd session of the Commission on Sustainable Development
Commission on Sustainable Development
[%doctitle%]

5. Changing consumption and production patterns

43. With UNCED, the issue of changing consumption patterns was for the first
time formally placed on the agenda for multilateral negotiations. The
Commission reaffirms the need to change those contemporary patterns of
consumption and production which are detrimental to sustainable development. In
the context of differentiated responsibilities in this field, developed
countries bear special responsibility and should take the lead by taking
effective measures for change in their own countries.

44. The Commission recognizes that the main economic agents whose behaviour as
producers or consumers should be the target of policy measures are individual
households, business and industry, and Governments, especially in developed
countries. Policies and measures to change production and consumption patterns
should be predictable for producers and consumers and should be supportive of
sustainable development. The price of a product should be related to its lifecycle
costs. Prevention of pollution which results in cost reduction should
also be recognized and encouraged with appropriate incentives. The Commission
urges national authorities to endeavour to promote the internalization of
environmental costs and the use of economic instruments, taking into account the
approach that the polluter should, in principle, bear the cost of pollution,
with due regard to the public interest and without distorting international
trade and investment. Where vulnerable groups may already be affected by
measures taken for environmental purposes, appropriate offsetting measures
should be introduced.

45. Attention should be given to the special situation and needs of developing
countries; for them, eradicating poverty and meeting basic human needs in the
process of pursuing sustainable development are overriding priorities.
46. The Commission recognizes, at the same time, that all countries should
derive immediate and long-term benefits from establishing and maintaining more
sustainable consumption and production patterns.

47. The Commission recommends that measures and steps to change consumption and
production patterns should be pursued, especially in developed countries,
inter alia, by appropriate instruments, public awareness campaigns, adequate
guidance in the field of advertising, education, information and advice for the
purposes of: (a) conserving energy and using renewable sources of energy;
(b) making greater use of public transport; (c) minimizing recycling and reusing
waste; (d) reducing the quantity of packaging; (e) encouraging consumption of
products produced by more environmentally sound processes and the development of
environmentally sound products; (f) reducing the amount of water wasted; and
(g) reducing environmentally harmful substances in products.

48. After reviewing which measures could be most cost-effective in changing
behaviour, in particular, economic instruments, the Commission notes that
despite the growing interest in such instruments and their increasing use,
especially in developed countries, there is not as yet sufficient quantitative
evidence to evaluate adequately the effectiveness of their use in practice. The
Commission notes further that experience in developed countries with such
instruments suggests a number of tentative conclusions, as described in the
report of the Secretary-General (E/CN.17/1994/2), which need to be explored
further.

49. The Commission notes ongoing efforts to introduce mechanisms, particularly
in developed countries, to internalize external costs, especially regarding all
greenhouse-gas emissions.

50. In order to facilitate a better understanding of the interrelationship
among consumption patterns, production structures and techniques, economic
growth, employment, population dynamics and environmental stress, the Commission
calls on Government to: (a) intensify and expand their efforts to collect
relevant data at the national and subnational levels and (b) undertake
projections and prospective studies so as to better appreciate the consequences
of present policy stances and the possible impact of changing those policies.

51. The Commission notes the work undertaken within and outside the United
Nations system that could contribute to developing a solid conceptual framework
in this field. In this context, the Commission further notes that OECD is
working actively on analysing the process of bringing about changes in
consumption and production patterns. This analysis is intended to contribute to
assessing current patterns and trends and to addressing the likely sectoral,
economic and environmental impacts of significant changes in consumption and
production patterns in OECD countries. The Commission calls on organizations
within and outside the United Nations system, including OECD, to continue their
useful work in this area, taking into account the guidelines in chapter 4 of
Agenda 21, as well as in the present decision.

52. The Commission urges Governments and the private sector to consider
measures to achieve the following objectives: (a) encouraging greater
efficiency in the use of energy and resources; (b) minimizing waste;
(c) assisting individuals and households to make environmentally sound
purchasing decisions; (d) exercising leadership through government purchasing;
(e) moving towards environmentally sound pricing, and (f) reinforcing values
that support sustainable consumption and production. In this connection,
exchange of experience should be encouraged.

53. The Commission recommends that Governments and relevant international
organizations undertake national and regional studies of environmental, social
and economic trends and damage from present patterns of consumption and
production to assess their sustainability and their repercussions on other
countries, particularly developing countries, and on the world economy. The
results of these studies should help Governments set national priorities to
address the most damaging effects of unsustainable consumption patterns and to
assist developing countries to this effect.

54. It urges Governments to consider using pricing policies to internalize the
costs of risk and damage to the environment, to a greater or lesser extent,
depending on the varying circumstances of developed and developing countries and
countries with economies in transition and to consider reporting on the action
taken to the Commission on Sustainable Development in 1997.

55. It invites the United Nations system, as well as regional and international
organizations, to assess and report on how they may promote sustainable
consumption and production patterns through their own activities.

56. The Commission calls upon the Secretary-General to request the views of
Governments in order to formulate elements of a possible work programme for
sustainable consumption and production patterns by the third session of the
Commission on Sustainable Development, in 1995. Preparatory work could include
the inter-sessional organization of workshops and other forms of informationexchange
on the relative effectiveness of a spectrum of instruments for changing
unsustainable consumption and production patterns in all groups of countries.
This should be done in continuous consultation with representatives from
non-governmental organizations, business and industry from all regions.

57. The Commission requests the Secretary-General to prepare an analytical
report on the use of economic instruments and other policy measures for changing
consumption patterns in developed countries, with special reference to the
sectoral issues on the agenda of the Commission at its third session, as an
input to the Ad Hoc Open-ended Working Group on Finance.


[%doctitle%]

1. Toxic chemicals

157. The Commission notes that efforts to control chemical risks to human health
and the environment have not kept pace with the widespread and growing use of
chemicals in all sectors worldwide.

158. The Commission recalls that Agenda 21 states that a significant
strengthening of both national and international efforts is needed to achieve an
environmentally sound management of chemicals. In that context, the Commission
urges Governments, international organizations and relevant non-governmental
actors to increase their efforts to ensure that chemicals are used and managed
in a sustainable way.

159. The Commission calls upon United Nations bodies and other international
organizations to improve international coordination to avoid unnecessary
duplication of efforts and to strengthen the International Programme on Chemical
Safety (IPCS) in order to share the burden of work, involving the World Health
Organization (WHO), the International Labour Organization (ILO) and the United
Nations Environment Programme (UNEP), as well as the Food and Agriculture
Organization of the United Nations (FAO), the United Nations Industrial
Development Organization (UNIDO), the Organisation for Economic Cooperation and
Development (OECD) and the Commission of the European Union.

160. The Commission notes that the International Conference on Chemical Safety
was convened by WHO, UNEP and ILO in Stockholm from 25 to 29 April 1994, at the
invitation of the Government of Sweden, and was attended by 114 Governments and
relevant international organizations. The Commission also welcomes the
establishment of the Intergovernmental Forum on Chemical Safety, as well as the
Priorities for Action adopted by the Conference, which are contained in the
annex below.

161. The Commission endorses the Priorities for Action and welcomes in
particular the targets and timetables agreed upon, and calls upon Governments,
international organizations and relevant non-governmental organizations to
implement the Priorities.

162. The Commission urges Governments, international organizations and
non-governmental organizations to participate actively in the Forum, encouraging
close links between a strengthened IPCS and the Forum.

163. The Commission welcomes the invitation of Governments to host
inter-sessional meetings of the Forum.

164. The Commission acknowledges the important role of the Forum in the
follow-up and review of chapter 19 of Agenda 21 and invites the Forum to report
to the Commission on its work, when appropriate, before the special session of
the General Assembly in 1997.

165. The Commission welcomes the recent progress by the Ad Hoc Working Group of
Experts on the Implementation of the Amended London Guidelines in the
development of possible elements for a legally binding instrument for the
mandatory application of the prior-informed-consent procedure (PIC) on a global
level. It recommends that UNEP, together with FAO and in close consultation
with other international organizations, continue to evaluate and address
problems with the implementation of the voluntary PIC procedure and to develop
effective legally binding instruments concerning the PIC procedure.

166. The Commission appreciates the recently agreed Code of Ethics on the
International Trade in Chemicals, stressing that it should be widely applied by
industry in all countries without delay. It emphasizes the role of industry as
a major player in furthering the objectives in chapter 19 of Agenda 21,
especially as regards risk assessment, the provision of data and the adoption
and implementation of risk-reduction measures.

167. The Commission welcomes the relevant provisions of the Programme of Action
for the Sustainable Development of Small Island Developing States, which, among
other things, calls for appropriate assistance to enable small island developing
States to control risks to human health and the environment of their peoples.
168. The Commission recognizes the need for Governments to develop appropriate
economic instruments to strengthen the sound management of chemicals throughout
their life cycle. It invites Governments to report to the Commission, at its
next session, on their experience in applying economic instruments in that
regard.

169. The Commission recognizes the importance of taking action to address the
health and environmental impacts of chemicals. It notes, for example, the
severe health impacts of human exposure to lead, endorses the ongoing work on
that issue in several international forums and encourages further efforts to
reduce human exposure to lead.

170. The Commission recognizes the need for Governments and intergovernmental
forums to identify persistent and bio-accumulative chemicals with a view to
phasing out or banning such chemicals.

171. The Commission notes the need to assess both the relative costeffectiveness
of programmes for implementing chapter 19 of Agenda 21 and whether
the commitments undertaken meet the needs of the public, bearing in mind the
risk of frequent contact with chemicals in everyday life.

172. The Commission acknowledges that efficient coordination of the work on
chemical safety on the part of concerned sectors at the national level, the
active participation of industry and employees as part of the mobilization of
the non-governmental sector, and the strengthening of the community right to
knowledge through environmental reports, eco-audits, emission inventories and
similar instruments are important factors for increased chemical safety.

173. The Commission stresses the need for strengthening national capabilities
and capacities for the management of chemicals, particularly in developing
countries, and encourages the commitment of Governments to concrete bilateral
action in that area.

174. The Commission stresses the need for full implementation of both the
agreements on technology transfer contained in chapter 34 of Agenda 21 and the
relevant decisions of the Commission. In that context, the Commission urges the
international community to find concrete ways and means to transfer to

developing countries and economies in transition appropriate technologies as
regards toxic chemicals and chemical safety.

175. The Commission urges Governments to mobilize financial resources to respond
to the above priorities, as agreed in chapter 33 of Agenda 21 and the relevant
decisions of the Commission.

176. The Commission invites the task manager to continue to monitor progress
made by the United Nations and other international organizations in implementing
chapter 19 of Agenda 21 and to inform the Commission periodically of such
progress through IACSD.

Annex

PRIORITIES FOR ACTION ADOPTED BY THE INTERNATIONAL CONFERENCE
ON CHEMICAL SAFETY

Introduction

1. While Agenda 21 gives the overall objectives of the six programme areas and
suggestions for their implementation, the adopted recommendations indicate
priorities for immediate actions and goals to be achieved in the longer term.
Agenda 21 states that its successful implementation is first and foremost the
responsibility of Governments. Accordingly, the given recommendations are first
of all dealing with priorities for action by Governments, but several of them
regard work by which international bodies may develop effective tools for use by
Governments.

2. Close cooperation between international organizations and Governments, and
the development and strengthening of cooperation at the regional level are in a
great number of cases important means to enhance significantly the result of
recommended actions.

3. National implementation of international agreements on chemical safety
should be encouraged.

4. At the national level, an efficient coordination of the work on chemical
safety by concerned sectors is a prerequisite for successful results. Active
participation of employers and workers, mobilization of the non-governmental
sector, and strengthening of the community right to know are important factors
for increased chemical safety.

5. Much of the work to strengthen chemical safety has been carried out by
several United Nations bodies and programmes, the Organisation for Economic
Cooperation and Development (OECD), the European Union, a number of countries,
industries, trade unions and other non-governmental organizations, resulting in
many useful tools for improvement of chemical safety. An expanded knowledge and
use of these means should be promoted.

6. Adequate and good quality information on scientific, technical, economic
and legal matters are essential for the sound management of chemicals.
Developing countries and countries with economies in transition have particular
problems in this regard. Bilateral technical assistance, transfer of
technology, and other kinds of support should be increased in order to
accelerate their development.

7. In all programme areas, there is a need for education and training.
Efforts to satisfy this need should be carefully coordinated, and emphasis
should be put on training the trainers.

8. Risk reduction activities should take into account the whole life cycle of
a chemical, and chemical controls and pollution control initiatives should be
closely integrated. Where relevant, the precautionary approach, as outlined in
principle 15 of the Rio Declaration on Environment and Development, should be
applied.

9. Special attention should be paid to occupational safety and health problems
caused by chemicals, primarily in the interest of protecting workers? health.
In addition, epidemiological and other data based on human experience have
always proven to be valuable with respect to other chemical-related problems.

10. When determining priorities for risk management, the implementation of
these will be dependent upon the chemicals management capabilities of individual
countries. When setting priorities for international activities, high priority
should be given to those where achievement of goals can occur only when action
is carried out at the international level. Activities leading to greater
efficiency and cost savings, e.g. sharing of risk assessment reports of adequate
quality, should be promoted. Completion of work where significant initiatives
are well under way should have priority before initiating new programme
activities.

11. Major actions undertaken should be monitored to assess progress.
12. The order in which the following recommendations are presented does not
indicate various degrees of importance.

Programme area A. Expanding and accelerating international assessment of
chemical risks

1. Needs for different types of health and environmental risk assessments
should be identified and criteria for setting priorities for the various types
of risk assessments should be agreed. Applying these criteria, an initial list
of chemicals (including those of high production volume) for risk assessment by
the year 1997 should be established as soon as possible.
2. Harmonized approaches for performing and reporting health and environmental
risk assessments should be agreed as soon as possible. Such protocols should be
based on internationally agreed principles to permit the full use of risk
assessments performed by both national authorities and international bodies.
3. An inventory of risk assessments that are planned, in preparation or
completed should be established before the end of 1994.
4. Industry should be encouraged to generate and supply data required for risk
assessment to the greatest possible extent.
5. Human exposure data, and good quality health effects data from developing
countries, should be generated.
6. Taking into account the results of the activities recommended in items 1
and 2 and making full use of the evaluations produced by United Nations bodies,
OECD, and others, 200 additional chemicals should be evaluated by 1997.
7. If the target in item 6 is met, another 300 chemicals should be evaluated
by 2000.
8. The general principles for establishing guidelines for exposure limits,
including the setting of safety factors, need to be harmonized and described.
Countries should establish guidelines for exposure limits for humans and for
particular environmental compartments for as many chemicals as possible, taking
into account the harmonization efforts and the potential use of such guidelines.
9. Research and development should be promoted for the better understanding of
the mechanisms of adverse effects of chemicals on humans and the environment.
10. Attempts should be made to further reduce the use of vertebrate animals in
toxicity testing by encouraging the development, validation and use of
alternative methods.

Programme area B. Harmonization of classification and labelling of chemicals

1. The ongoing technical work on classification criteria should be
strengthened to enable finalization by 1997. Continued work to harmonize
classification systems and to establish compatible hazard communication systems,
including labelling and safety data sheets, should be completed by 2000.
2. Countries should ensure that there is sufficient consultation to allow the
development of a consistent national position on harmonization of classification
systems.
3. An international framework for translating the result of the technical work
on harmonization into an instrument or recommendations applicable legally at the
national level should be established at an appropriate time.

Programme area C. Information exchange on toxic chemicals and chemical risks

1. Networks for information exchange should be strengthened to take full
advantage of the information dissemination capacities of all governmental,
intergovernmental and non-governmental organizations.
2. Both the types of information exchanged and the methods of effecting the
exchange should be tailored to meet the needs of major groups of users, taking
due account of different languages and literacy levels.
3. Relevant data available from international bodies should be consolidated,
if economically feasible, by 1997 on CD/ROM or other appropriate electronic
media, together with suitable searching and updating facilities.
4. Sources of information useful in responding to chemical emergencies should
be established and access to these sources should be readily and rapidly
available.
5. Regional cooperation and information exchange networks should be
established in all regions as soon as possible.
6. National institutions responsible for information exchange on chemicals
should be created or strengthened, according to needs.
7. All countries should have nominated, by 1997, designated authorities for
participation in the PIC procedure.
8. Work should continue to evaluate and address problems with implementation
of the voluntary PIC procedure and to develop effective international legally
binding instruments concerning the PIC procedure.
9. All countries which export chemicals subject to the PIC procedure should
have the necessary mechanisms in place by 1997, including implementation and
enforcement provisions, to ensure that export does not take place contrary to
importing countries? decisions. Importing countries should also establish the
necessary mechanisms.
10. In all developing countries and countries in economic transition, training
should have been made available by 1997 in the implementation of the London
Guidelines and the PIC procedure.
11. The circulation of safety data sheets for all dangerous chemicals being
traded should be encouraged, as promoted by the recently agreed Code of Ethics
on the International Trade in Chemicals.

Programme area D. Establishment of risk reduction programmes

1. In all countries chemical risks which are both readily identifiable and
readily controllable should be reduced as soon as possible. In countries with
sufficient resources, plans for the possible reduction of other chemical risks
should be elaborated and enacted without delay. Industry, in accordance with
the polluter pays principle, has a particular responsibility to contribute to
the implementation of risk reduction programmes. Governmental experience and
progress in national risk reduction programmes shall be presented in a report by
1997 to serve as a basis for setting goals for the year 2000.
2. The feasibility and usefulness of extending pollutant release and transfer
registers to more countries, including newly industrialized countries, should be
evaluated and a report prepared by 1997.
3. As a particular priority, the recently agreed Code of Ethics on the
International Trade in Chemicals should be applied widely by industry in all
countries without delay.
4. Efforts to promote the development and use of clean technology regarding
the production and use of chemicals should be encouraged.
5. Countries should review their pesticides safety strategy in order to
protect human health and the environment, including surface and groundwater. To
reduce pesticide risks, countries should consider promoting the use of adequate
safer pesticides, as well as the decreased use by better management practices
and the introduction of alternative pest management technologies. A progress
report should be prepared by 1997.
6. By 1997 not less than 25 more countries should have implemented systems for
prevention of major industrial accidents in accordance with international
principles such as those contained in the 1993 ILO Convention (No. 174) on the
Prevention of Major Industrial Accidents, and the United Nations Economic
Commission for Europe (UN/ECE) Convention on Transboundary Effects of Industrial
Accidents.
7. By 1997 not less than 50 more countries should have introduced national
systems for emergency preparedness and response, including a strategy for
education and training of personnel, with the aid of, inter alia, the APELL
programme and the ILO Code of Practice on the Prevention of Major Industrial
Accidents (1991).
8. By 1997 not less than 40 more countries should have established poison
control centres with related clinical and analytical facilities, and good
progress should have been made on harmonizing systems for recording data in
different countries.
9. Priority attention should also be given to finding and introducing safe
substitutes for chemicals with which high and unmanageable risks are associated.
Governments, industries and users of chemicals should also develop, where
feasible, new, less hazardous chemicals and new processes and technologies which
effectively prevent pollution.
10. While recognizing that risk reduction activities are primarily national
responsibilities, international risk reduction programmes could also be
warranted for those problems that are international in scope.
11. Attention should also be paid to ensuring that all countries introduce
appropriate legislation to implement the United Nations Recommendations on the
Transport of Dangerous Goods and to ensuring that this legislation is regularly
updated whenever the Recommendations are revised, especially in the context of
the global harmonization of classification and labelling systems.

Programme area E. Strengthening of national capabilities and capacities for
management of chemicals

1. The strengthening of national capabilities and capacities to manage
chemicals in a great number of developing countries requires, in addition to
funding and support from developed countries, innovative thinking as to how to
make best use of existing systems. Bilateral assistance arrangements between
developed and developing countries and countries with economies in transition
should be encouraged. Efficient regional cooperation is of the utmost
importance.
2. National profiles to indicate the current capabilities and capacities for
management of chemicals and the specific needs for improvement should be
elaborated as soon as possible and not later than 1997.
3. Comprehensive guidelines for chemical legislation and enforcement should be
elaborated as soon as possible, taking into account, inter alia, the principles
of the 1990 ILO Chemicals Convention (No. 170).
4. By 1997 mechanisms for ensuring liaison of all parties involved in chemical
safety activities within a country should be established in the majority of
countries.
5. Further education programmes and training courses should be arranged at the
national and regional level to provide a core of trained people, both technical
staff and policy makers, in developing countries and countries with economies in
transition.
6. Efforts should be made to improve the coordination of activities in the
area of education, training and technical assistance.
7. As a longer-term objective, chemical information systems should be
established in all countries, comprehensive legislation should be enacted and
enforcement procedures be in place. Continued campaigns to increase the public
awareness of chemical risks and their prevention should be run.
Programme area F. Prevention of illegal international traffic in toxic and
dangerous products
Until control legislation is in place in a sufficient number of countries,
as a basis for further legal international instruments to halt illegal traffic
in toxic and dangerous products, all efforts should be made to improve the
situation, including strengthening of the PIC procedure.

2. Hazardous wastes

177. The Commission notes with concern that many countries face severe and
urgent health and environmental problems due to the production and mismanagement
of hazardous wastes by industrial and other economic activities, as a result of:
(a) The lack of environmentally sound waste treatment facilities and
appropriate technologies;
(b) The lack of information and expertise;
(c) The lack of preventive approaches;
(d) The lack of financial resources to cover the enormous costs of
treatment and remedial action;
(e) The illegal traffic in hazardous wastes both nationally and across
boundaries.

178. The Commission welcomes the progress achieved in the area of hazardous
wastes and in that regard endorses:
(a) The decisions taken by the Parties to the Basel Convention on the
Control of Transboundary Movements of Hazardous Wastes and Their Disposal at
their second meeting, which, inter alia, prohibit immediately all transboundary
movement of hazardous wastes destined for final disposal from States that are
members of the Organisation for Economic Cooperation and Development (OECD) to
non-OECD States, and the phase-out by 31 December 1997 of all transboundary
movement of hazardous wastes that are destined for recycling and recovery, from
OECD to non-OECD States;
(b) The decision to ban ocean dumping of industrial wastes taken at the
International Maritime Organization (IMO) by the Contracting Parties to the
Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other
Matters (London Convention, 1972) that will become effective on 1 January 1996;
(c) Recent actions taken by the United Nations Environment Programme
(UNEP), the United Nations Industrial Development Organization (UNIDO), the
World Health Organization (WHO), the International Labour Organization (ILO),
IMO and other relevant organizations of the United Nations system and actions
taken at the national level.

179. The Commission stresses, however, that the current situation requires
further concrete action by Governments, international organizations,
non-governmental organizations and the private sector in order to implement

chapter 20 of Agenda 21 and emphasizes, while taking into account the state of
development of each country, that particular attention should be given to:
(a) The prevention, to the extent possible, of hazardous wastes and a
minimization of their toxicity through the development, dissemination and
application of an integrated cleaner production approach in all planning, such
as the UNIDO/UNEP Cleaner Production Centres, and the use of an appropriate mix
of institutional and regulatory measures as well as economic instruments;
(b) The environmentally sound management and disposal of waste with a view
to ensuring the principle of proximity and self-sufficiency.

180. The Commission urges Governments to:
(a) Ratify or accede to the Basel Convention and to develop adequate
control regimes, such as customs procedures, as well as methods and tools of
detection;
(b) Support the fund established by the Contracting Parties to the Basel
Convention, which is still very short of resources, to specifically support
developing countries? hazardous waste minimization and management needs.


181. The Commission urges the Parties to the Basel Convention to ask its
secretariat to develop procedures and guidelines for the implementation of the
recent decisions taken by the Parties at their second meeting and, in
cooperation with relevant units of UNEP, UNIDO and WHO, to assist specific
developing countries on a pilot basis, within the period 1994-1995, with the
development of a legal framework for hazardous waste management, the preparation
and implementation of hazardous waste management plans in specific geographical
areas and capacity-building in the field.

182. The Commission invites the Conference of the Parties to the Basel
Convention to consider the feasibility of developing non-compliance procedures
for the Convention.

183. The Commission urges the Parties to the Basel Convention to ask its
secretariat to undertake case-studies of the illegal traffic in hazardous wastes
and of wastes whose status is ill-defined and that are destined for recycling
activities.

184. The Commission urges that the illegal disposal of tanker sludge and ballast
water into marine waters be given high priority and recommends that they be
subject to relevant requirements of the appropriate international conventions.

185. The Commission welcomes the efforts to develop regional arrangements
similar to the Bamako Convention on the Ban of the Import into Africa and the
Control of Transboundary Movement of All forms of Hazardous Waste within Africa.

186. The Commission recalls and reaffirms UNEP Governing Council decision 17/5
on the application of environmental norms by the military establishment and
urges Governments to take action to implement the decision fully.

187. The Commission invites UNEP to consider the feasibility of arranging
regional meetings, in cooperation with the United Nations regional commissions
and regional organizations, on the implementation of the decision and on how
national environmental plans for the military establishment relating to
hazardous waste management can be designed and implemented.

188. The Commission recommends that the following actions and measures be taken
at the national level:
(a) Governments should establish and/or strengthen national institutions
to manage hazardous wastes;
(b) Governments should develop and reinforce laws and regulations on
hazardous wastes and strengthen their enforcement;
(c) Governments should, on the basis of toxic release inventories
providing information on sources and quantities of hazardous wastes, develop and
enhance integrated national hazardous waste management plans, taking into
account all sources and fates of hazardous waste, e.g., industry, military
establishments, agriculture, hospitals and households;
(d) Priority should be given to activities designed to promote cleaner
production, prevention and minimization to the extent possible of hazardous
waste through applying the life-cycle approach and the provision of adequate
information, research, development and demonstration activities as well as
training and education;
(e) Case-studies on specific industry sectors should be launched in
different countries, with particular emphasis on small and medium-sized
enterprises;
(f) Effective systems should be developed and maintained for the
segregated collection of wastes, and incentives should be provided to encourage
the segregation, recycling, reuse and reclamation of hazardous wastes.

189. In order to give support to national activities, the following regional and
international measures should be taken:
(a) Efforts to support the exchange of information among and between
developed and developing countries on the minimization and environmentally sound
management of hazardous wastes in support of the transfer of environmentally
sound technologies should be increased;
(b) Focused training activities adapted to specific local needs should be
conducted.

190. The Commission stresses that production facilities transferred to
developing countries and economies in transition should have environmentally
sound waste management plans, so that the waste generated by those facilities
should not, either by its quantity or quality, be harmful to the environment of
those countries.

191. The Commission urges industry to develop voluntary codes of conduct for the
use of clean technologies and the safe management of hazardous wastes in all
countries where they operate.

192. The Commission welcomes the relevant provisions of the Programme of Action
for the Sustainable Development of Small Island Developing States, and urges
that adequate support be given to various strategies identified in the Programme
of Action for the management of hazardous wastes.

193. The Commission also welcomes the proposal of Poland to join with UNEP in
hosting an international symposium on cleaner production to strengthen the
-44-
international activities in that field in Poland from 12 to 14 October 1994.
Initiatives that minimize the production of hazardous wastes will contribute to
advances in the area and offer economic advantages.

194. The Commission further welcomes the proposal of Germany to host an
international workshop in 1994 on the minimization and recycling of waste,
including the development of strategies towards life-cycle management, which
could also contribute to hazardous waste reduction.

195. The Commission stresses the need for:
(a) Governments and relevant international organizations to develop
economic instruments and consider mobilizing additional financing earmarked for
hazardous waste management and to take other measures to facilitate the
prevention of hazardous wastes, such as eco-labelling and mandatory take-back of
used products;
(b) International organizations to harmonize testing methodologies and
hazardous waste nomenclature, taking into account the work done by OECD;
(c) National and international institutions to assess the full dimensions
of soil and groundwater contamination, in particular that due to improper
storage and disposal of hazardous wastes;
(d) Governments to require the necessary prevention and remedial actions
to address the problems of contaminated soil and groundwater.

196. The Commission stresses the need for full implementation of the agreements
on technology transfer contained in chapter 34 of Agenda 21 and the relevant
decisions of the Commission. In that context, the Commission urges the
international community to find concrete ways and means of transferring to
developing countries and economies in transition appropriate technologies as
regards the prevention, minimization, treatment, disposal techniques and
remedial action concerning hazardous wastes.

197. The Commission urges Governments to mobilize financial resources to respond
to the above priorities, as agreed in chapter 33 of Agenda 21, and the relevant
decisions of the Commission.

198. The Commission invites the task manager, UNEP, to continue to monitor
progress made by the United Nations and other international agencies in
implementing chapter 20 of Agenda 21 and to inform the Commission periodically
of such progress through IACSD.

3. Radioactive wastes

199. The Commission acknowledges the report of the Secretary-General on progress
achieved in the implementation of chapter 22 of Agenda 21 (E/CN.17/1994/15).
The Commission requests the Secretary-General to issue an addendum to the
report, including information on radioactive wastes contained in the national
reports received since the date of the report.

200. The Commission notes that the generation of radioactive wastes continues to
increase worldwide from nuclear power generation, the decommissioning of nuclear
facilities, nuclear-arms reduction programmes and the use of radionuclides in
medicine, research and industry, and that enhanced efforts must be made, at both
national and international levels, to promote the safe and environmentally sound
management of radioactive waste.

201. The Commission also notes that radioactive defence wastes represent the
same risks as other types of radioactive wastes. However, in a number of
countries, the management of radioactive defence waste is not subject to the
same safety rules as the management of other radioactive wastes. In those
countries it is outside the control of national civilian radiation protection
and safety authorities but generally falls under military rules.

202. The Commission further notes that a number of countries have been involved
in the monitoring and safe management of radioactive wastes, that legislation
has been enacted or amended and safety standards updated, and that licensing and
control procedures have been reviewed.

203. The Commission recognizes that efforts have been geared towards identifying
and establishing permanent disposal sites for radioactive wastes and that
Governments are continuing their efforts to manage interim storage facilities
and to find practical measures for minimizing and limiting, where appropriate,
the generation of those wastes.

204. The Commission welcomes the progress made in technical, legal and
administrative measures at the national, regional and international levels with
the aim of ensuring that radioactive wastes are safely managed, transported,
stored and disposed of, or are treated with a view to protecting human health
and the environment.

205. The Commission supports the effective international cooperation in
research, exchange of information and standard-setting that was carried out in
the field under the auspices of the International Atomic Energy Agency (IAEA),
the Nuclear Energy Agency (NEA) of the Organisation for Economic Cooperation and
Development (OECD), and, concerning research and the exchange of information, in
the European Union. In particular, it welcomes the progress made in the IAEA
Radioactive Waste Safety Standards (RADWASS) programme.

206. The Commission also welcomes the development by IAEA of the Codes of
Practice on the International Transboundary Movement of Radioactive Waste and by
the International Maritime Organization (IMO) of the Codes of Practice on the
Safe Carriage of Irradiated Nuclear Fuel, Plutonium and High-level Radioactive
Waste in Flasks on Board Ships.

207. The Commission expresses its satisfaction at the November 1993 decision at
IMO by the Contracting Parties to the Convention on the Prevention of Marine
Pollution by Dumping of Wastes and Other Matter (London Convention, 1972) to
convert the voluntary moratorium on ocean dumping of all radioactive wastes into
a binding prohibition. That global prohibition will strengthen earlier bans
agreed upon in regional contexts. The Commission urges all Contracting Parties
to the Convention to respect its now binding character.

208. The Commission considers it imperative that the export of radioactive
wastes be inadmissible to countries that do not have the technical, economic,
legal and administrative resources for environmentally safe and sound management
of radioactive wastes.
209. The Commission calls attention to the needs of developing countries and
economies in transition to establish or strengthen their capacities for the safe
management of radioactive wastes, including spent radiation sources.

210. The Commission:
(a) Urges Governments to apply the precautionary principle
(e.g., preparatory measures for final disposal) in decisions concerning new or
extended activities generating radioactive wastes;
(b) Urges Governments to undertake the further research and development of
such areas as the minimization and reduction of the volume of radioactive
wastes, potential sites for the storage of radioactive wastes, safety and health
standards associated with the handling of radioactive wastes and remediation
procedures and processes;
(c) Calls upon Governments to fully implement the IAEA and other relevant
codes of practice that have been adopted in the area of transboundary movements
and the transport of radioactive wastes;
(d) Recommends that Governments encourage suppliers of sealed radiation
sources to accept the return of such sources and ensure their safe and
environmentally sound management after use;
(e) Calls upon Governments to ensure that radioactive wastes arising from
military activities should be subject to the same types of strict safety and
environmental regulations as those arising from civilian activities;
(f) Calls upon Governments to internalize, to the maximum extent possible,
all costs of the operations of nuclear facilities and of related waste
management, including the decommissioning of nuclear facilities;
(g) Supports world-wide efforts to demonstrate viable methods for the safe
disposal of long-lived and high-level radioactive wastes and the reinforcement
of international cooperation in the field.

211. The Commission urges Governments to promptly begin, in the context of IAEA,
after the finalization of the Nuclear Safety Convention, work on the development
of an international convention on the safety of radioactive waste management,
including consideration of the total life-cycle management of nuclear materials.
In order to speed up the process, IAEA should urgently complete preparations
related to safety fundamentals, which is a prerequisite for beginning such work.

212. The Commission invites IAEA, in cooperation with other relevant
organizations, to continue to develop or improve standards for the management
and safe disposal of radioactive wastes, and to report the results to the
Commission at its third session.

213. The Commission calls upon the international community:
(a) To further support the development of international standards for
radioactive waste management;
(b) To take all necessary steps to prohibit the export of radioactive
wastes, except to countries with appropriate waste treatment and storage
facilities;
(c) To strengthen cooperation and provide assistance to economies in
transition in solving their urgent and specific problems due to improper
treatment and disposal with regard to radioactive wastes;
(d) To provide technical assistance to developing countries in order to
enable them to develop or improve procedures for the management and safe
disposal of radioactive wastes deriving from the use of radionuclides in
medicine, research and industry;
(e) To facilitate financial assistance to developing countries in order
for them to address adequately radioactive waste management problems.

214. The Commission calls upon Governments and relevant multilateral funding
organizations to assist developing countries in national capacity-building for
the safe and sound management of radioactive wastes.

215. The Commission urges Governments, together with IAEA, to promote policies
and practical measures to minimize and limit, where appropriate, the generation
of radioactive wastes and provide for their safe processing, conditioning,
transportation, storage and disposal, taking into account the provisions of
chapter 22 of Agenda 21.

F. Other matters
Matters related to the inter-sessional work of the Commission

216. The Commission, taking into account its mandate to coordinate and review
progress in the implementation of the recommendations of the United Nations
Conference on Environment and Development, bearing in mind the experience
acquired so far in work carried out inter-sessionally and recognizing the need
for further rationalization and integration of future inter-sessional activities
with a view to adequately preparing for its third session:
(a) Reconfirms the mandate of its Inter-sessional Ad Hoc Open-ended
Working Group on Finance, as contained in paragraph 61 of chapter I of the
report on its first session (E/1993/25/Add.1); requests the Working Group, in
carrying out its mandate to, inter alia, (i) focus more directly on the
financial sources and mechanisms appropriate to sectoral issues under review by
the Commission; (ii) develop a matrix of financial sources and mechanisms which
can be applied to these sectors, and maintain the integrated approach; and
(iii) pursue the study of selected innovative financing mechanisms, as well as
of economic instruments; and also requests the Working Group to involve more
actively international financial institutions and other multilateral funding
organizations and the private sector in its work, bearing in mind the need to
bring together concrete projects and private actors;
(b) Decides to establish an inter-sessional ad hoc, open-ended working
group composed of Governments, which will nominate experts to assist the
Commission in the preparation, in a coordinated and integrated way, of the
examination of sectoral issues to be reviewed by the Commission at its third
session, in accordance with the multi-year thematic programme of work of the
Commission - namely, the sectoral cluster entitled "Land, desertification,
forests and biodiversity". The mandate of the working group should be:
(i) To review chapters 10 to 15 of Agenda 21 and the Non-legally Binding
Authoritative Statement of Principles for a Global Consensus on the
Management, Conservation and Sustainable Development of All Types of
Forests, taking account, as appropriate, of inputs from other forums,
such as the Intergovernmental Negotiating Committee for the
Elaboration of an International Convention to Combat Desertification
in those Countries Experiencing Serious Drought and/or
Desertification, Particularly in Africa, inasmuch as such inputs have
a bearing on the work of the Commission;
(ii) To take stock of inter-sessional activity organized by Governments or
international organizations on sectoral issues under review at the
Commission?s third session;
(iii) To group together initiatives under way on a particular sectoral
issue;
(iv) To convey the results of relevant inter-sessional work to the
Commission;
(v) To make recommendations on the organization of the Commission?s
discussions of sectoral issues in the light of inter-sessional
activity.

217. The Commission, taking into account the need for effective implementation
of its functions related to the transfer of environmentally sound technologies,
cooperation and capacity-building, decides that the functions of its
Inter-sessional Ad Hoc Open-ended Working Group on Technology Transfer and
Cooperation, established at its first session for a trial period of one year,
will be carried out by the two ad hoc working groups referred to above as
follows:
(a) The Inter-sessional Ad Hoc Open-ended Working Group on Finance will
consider all issues related to the financial aspects of transfer of
environmentally sound technologies;
(b) The Inter-sessional Ad Hoc Open-ended Working Group on Sectoral Issues
will consider technology transfer issues in relation to the specific sectoral
issues under review in 1995, including the experience of individual countries.

218. The Commission decides that the Inter-sessional Ad Hoc Open-ended Working
Group on Sectoral Issues will have a one-year mandate so that the Commission can
review its performance at its third session, in 1995.

219. The Inter-sessional Ad Hoc Open-ended Working Groups on Finance and
Sectoral Issues should meet for a period of one week each, at least six weeks
before the third session of the Commission. The meeting on sectoral issues
should take place before that on finance in order to facilitate the
identification of the resource needs and mechanisms applicable to specific
sectors.

220. The Commission requests the Secretariat, in order to ensure transparency,
to disseminate, as appropriate, within existing resources, information about
inter-sessional activities and their results, possibly on the basis of a common
reporting format.


[%doctitle%]

Decision-making structures

5. The Commission welcomes the entry into force of the United Nations
Framework Convention on Climate Change and the Convention on Biological
Diversity, as well as the adoption of the Declaration of Barbados and the
Programme of Action for the Sustainable Development of Small Island Developing
States, and urges that appropriate follow-up action be taken. The Commission
supports the successful conclusion in June 1994 of the negotiations for the
elaboration of an International Convention to Combat Desertification in Those
Countries Experiencing Serious Drought and/or Desertification, Particularly in
Africa, and calls upon all States to accelerate progress in the United Nations
Conference on Straddling Fish Stocks and Highly Migratory Fish Stocks and to
promote the successful conclusion of the Intergovernmental Conference on the
Protection of the Marine Environment from Land-based Activities, to be held in
Washington, D.C. in November 1995.

6. The Commission expresses its appreciation to the Government of Austria for
organizing the International Symposium on Sustainable Development and
International Law, held at Baden bei Wien from 14 to 16 April 1994. The
Commission welcomes the report of that Symposium (E/CN.17/1994/16), which opens
a new and promising avenue in the field of codification and development of
international law in support of the fulfilment of the goals and objectives of
Agenda 21 and the Rio Declaration on Environment and Development. The
Commission recommends that relevant international treaty regimes contain
effective machinery for consensus-building and dispute settlement. The
Commission requests the United Nations Environment Programme to study further
the concept, requirements and implications of sustainable development and
international law.

7. The Commission, having examined the report of the Secretary-General
containing an overview of cross-sectoral issues (E/CN.17/1994/2), in particular
section IV on decision-making structures, takes note of the important measures
taken by Governments to integrate environment issues into the development
process within their decision-making structures, and requests all States and
relevant intergovernmental organizations to submit, or continue to submit,
information on an annual, voluntary basis on the implementation of Agenda 21,
the Rio Declaration on Environment and Development and other agreements and
conferences related to the United Nations Conference on Environment and
Development (UNCED), as appropriate.

8. The Commission also notes the establishment by the Secretary-General of the
High-level Advisory Board on Sustainable Development, and emphasizes the
desirability of fostering close interaction between the Board and the
Commission, including its Bureau.

9. The Commission takes note of the background paper containing the report
entitled "Decision-making structures: international legal instruments and
mechanisms", prepared by the task manager designated by the Inter-Agency
Committee on Sustainable Development (IACSD). The Commission urges the
Secretary-General to give high priority to coordination through the work of
IACSD. The Commission supports the designation by IACSD of task managers as an
important first step towards improving coordination. It calls upon the task
managers to provide innovative proposals on ways to achieve more efficient
results, including multi-agency joint programming, within available resources.
The Commission requests the Secretary-General to inform the Commission on
progress made in IACSD towards coordination among United Nations bodies in
implementing Agenda 21, the Rio Declaration on Environment and Development and
other UNCED-related agreements and conferences, as appropriate. United Nations
organizations, as well as international and regional financial institutions,
intergovernmental organizations and other relevant institutions are invited to
give priority to the implementation of Agenda 21, the Rio Declaration, and
UNCED-related agreements and conferences, as appropriate.

10. The Commission emphasizes the importance of creating appropriate national
frameworks for the implementation of Agenda 21 and other relevant agreements and
conferences, bearing in mind the need for a progressive provision of financial
resources and technology transfer, where appropriate. In this respect, the
Commission requests all States to establish the necessary coordinating machinery
for the promotion of sustainable development. The Commission also calls upon
the United Nations system, through the IACSD task managers, to coordinate its
capacity-building activities and to develop joint programming for this purpose,
wherever feasible.

11. In accordance with their national sustainable development priorities,
developing countries should, as appropriate, be supported in strengthening their
capacity in the development or streamlining of sustainable development
strategies, the development and maintenance of environmental law, including the
development of environmental impact assessment procedures, as well as their
capacity to participate effectively in the development of international law
related to sustainable development, and the elaboration of conventions and other
international instruments in this field.

12. The Commission recognizes the importance of full participation of all
interested parties in the negotiation of international agreements relating to
sustainable development, and therefore calls upon the relevant bodies to promote
the provision, through transparent and accountable mechanisms, of financial
support for the participation, in negotiating forums, of developing countries,
in particular the least developed countries, at their request.

13. The Commission recommends that States and international organizations
consider the use of partnerships with business and non-governmental communities
leading to non-legally binding agreements as a first step in the preparation of
international regulations.

14. The Commission notes the need for coordination and more efficient
structural arrangements among the secretariats of conventions related to
sustainable development.


[%doctitle%]

C. Education, science, transfer of environmentally sound
technologies, cooperation and capacity-building
Transfer of environmentally sound technologies,
cooperation and capacity-building

77. The Commission on Sustainable Development has reviewed with appreciation
the report of the Inter-sessional Ad Hoc Open-ended Working Group on Technology
Transfer and Cooperation (E/CN.17/1994/11) and takes note of the background
paper containing the Task Manager?s report on the transfer of environmentally
sound technology, cooperation and capacity-building, as well as section III of
the report of the Secretary-General containing an overview of cross-sectoral
issues (E/CN.17/1994/2). The Commission also notes the part of the report of
the High-level Advisory Board (E/CN.17/1994/13) relating to new approaches to
environmentally sound technology cooperation.

78. The Commission notes with appreciation the valuable initiatives undertaken
by various members of the Commission during the inter-sessional period as a
contribution to the work of the Commission in the area of transfer of
environmentally sound technology, cooperation and capacity-building, as
discussed in chapter 34 and other chapters of Agenda 21.
79. The Commission recognizes that developing countries face severe constraints
in their efforts to promote and engage in technology transfer and cooperation
due to the lack of adequate financial resources and limited human, managerial
and institutional capacities. In this regard, the Commission welcomes the
emphasis given by the Inter-sessional Ad Hoc Open-ended Working Group on
Technology Transfer and Cooperation to three key areas requiring priority
attention, namely: (a) access to and dissemination of reliable information on
environmentally sound technologies, (b) institutional development and capacitybuilding
and (c) financial and partnership arrangements.

80. The Commission notes that many of the proposals for action related to the
transfer of environmentally sound technology and cooperation are based on
practical experiences gained in some sectoral areas, and that many of these
experiences can be applied to other sectors as well.

81. The Commission stresses, in the context of chapter 34 of Agenda 21, the
need for Governments of developed and developing countries and countries with
economies in transition to take, with the support of international organizations
and institutions and through long-term cooperation and partnership arrangements,
specific action to (a) promote, facilitate and finance, as appropriate, access
to and the transfer of environmentally sound technologies and corresponding
know-how, in particular to developing countries, on favourable terms, including
concessional and preferential terms, as mutually agreed, taking into account the
need to protect intellectual property rights, as well as the special needs of
developing countries, for the implementation of Agenda 21; (b) promote long-term
technological cooperation and partnership between holders of environmentally
sound technologies and potential users; and (c) build the endogenous capacities
of those countries required to develop, assess, encourage and utilize such
technologies through, inter alia, research and development, education and
training.

82. The Commission reaffirms the crucial importance of strengthening the
capacities, in particular of developing countries, to assess, develop, apply and
manage environmentally sound technologies tailored to the countries? own needs
and priorities and stresses the need to focus efforts on capacity-building and
institutional development.

83. The Commission recognizes that the expertise required for technology
transfer and cooperation is being developed in many countries. Therefore,
Governments and enterprises are urged to look throughout the world for the best
ideas and creative solutions to meet their needs and solve their problems. The
transfer of unproved or environmentally detrimental technologies can thereby be
avoided.

84. The Commission reiterates the importance of public and private enterprises
in technological innovation and as an important conduit through which technology
is developed, transferred, used and disseminated. In this regard, the
Commission recognizes that technology partnership arrangements at the enterprise
level are a promising mechanism to facilitate access to information on
environmentally sound technologies and to support the development, transfer, use
and dissemination of these technologies and related know-how. Such partnerships
also strengthen the operational, administrative and maintenance skills of the
users, and stimulate best-practice methods for improving environmental
performance at the enterprise level, inter alia, by promoting the pollution
prevention approach in the production and use of goods and services. Companies
must continue to adapt and develop technology during the period of cooperation.
In this context, the concepts of "build-operate-transfer" (BOT) 3/
arrangements, regional technomarts and technofairs, 4/ were considered
promising approaches to technology transfer which need further examination.

85. The Commission notes the efforts of some industry associations to organize
conferences in selected countries in different regions for industry and trade
associations which would focus on environmental management, monitoring and
reporting, and to undertake research projects to collect and analyse casestudies
of successful and unsuccessful technology transfer and cooperation
programmes.

86. The Commission also stresses the crucial role that Governments of both
developed and developing countries have to play in creating favourable
conditions for the public sector and in encouraging the private sector to
develop and transfer environmentally sound technologies and build the capacities
in developing countries to use and manage those technologies effectively. In
this regard, international cooperation is highly important. The application of
incentives, such as reducing trade barriers, encouraging competition, opening up
markets to foreign collaboration, reducing corporate taxes and providing fiscal
incentives to enterprises that implement the transfer of environmentally sound
technologies, as well as other market reforms and sector restructuring, are
likely to have a substantial impact on improving access to capital for new
technologies. The further improvement and effective implementation of an
appropriate policy, legal and regulatory framework, on both the supply and the
demand side, can create new possibilities for the development of environmentally
sound technologies and their transfer to developing countries. This may include
a mix of macroeconomic policies, economic incentives and environmental
regulations. Special attention should also be given, as recommended by the
Inter-sessional Ad Hoc Open-ended Working Group on Technology Transfer and
Cooperation, to the involvement of small and medium-sized industries in the
process of technology transfer as they are the backbone of business and industry
in most developing countries. In this context, the Commission welcomes the
offer by the Government of Norway, in cooperation with the United Nations
Conference on Trade and Development, to host a seminar on the role of small and
medium-sized enterprises in technology transfer.

87. The Commission welcomes the recommendations of the Working Group concerning
the need to promote closer interaction among all actors involved in technology
transfer and cooperation and networking of institutional capacities. In this
context, the strengthening of existing environmental technology centres and the
establishment of new ones in developing countries are of crucial importance in
promoting development, transfer and adaptation of environmentally sound
technologies. They are a promising instrument for initiating research and
development on environmentally sound technologies and facilitating technological
3/ "Build-operate-transfer" arrangements can be used by private companies
to build a project, operate it long enough to pay back its debts and to achieve
a return on equity, and then transfer it to the host Government.
4/ Technomarts and technofairs are market places where technology
suppliers and users meet to exchange practical information on and demonstrate
applications of environmentally sound technologies.
collaboration between different partners at the national and regional levels.
The strengthening or establishment of such centres can also be considered for
countries with economies in transition.

88. The Commission notes that the Working Group has identified key priority
areas for the future work of the Commission and has provided an important forum
for the discussion of issues and the consideration of options that might have
been difficult in other contexts.

89. The Commission takes note of the relevant provisions on the transfer of
technology contained in the Programme of Action for the Sustainable Development
of Small Island Developing States and urges that adequate support be given to
priority areas in technology transfer as identified in the Programme of Action.

90. The Commission, therefore:
(a) Encourages and requests appropriate organizations of the United
Nations system, such as the United Nations Environment Programme (UNEP), the
United Nations Development Programme (UNDP), the United Nations Industrial
Development Organization (UNIDO) and the United Nations Conference on Trade and
Development (UNCTAD), to conduct, in collaboration with other international
organizations, such as the Organisation for Economic Cooperation and
Development, a survey on and assessment of the available sources of information,
as well as supporting systems and inventories, and their effective use, focusing
on selected environmentally sound technologies. The survey and assessment
should cover sources and systems of information on technologies that are in the
public domain as well as those protected by patents, whether privately or
publicly owned. In this regard, Governments, organizations and programmes of
the United Nations system, other international organizations, private non-profit
organizations, trade associations, industrial and commercial associations and
enterprises, research institutes and other non-governmental organizations, as
well as other relevant entities, are encouraged to provide all relevant
information and any other appropriate assistance, including case-studies on
technology transfer, in particular through the Internet-based systems and
facilities. The objective is to identify gaps and/or deficiencies in the
information sources or systems surveyed, and indicate feasible approaches to
correcting such problems, in order to improve the access to and efficient use of
such systems. An initial report on the results of this survey and assessment
should be submitted to the Commission at its third session, in 1995;
(b) Invites industry associations to provide to the Commission, and to
disseminate more widely, information on efforts being made and results achieved
in environmentally sound technology transfer, cooperation and capacity-building,
including through foreign direct investment and various forms of technology
partnerships with developing countries and countries with economies in
transition;
(c) Invites Governments of developed and developing countries and
countries with economies in transition and regional and intergovernmental
organizations to conduct collaboratively, with the assistance of international
organizations and institutions, as appropriate, case-studies on national
technology needs for environmentally sound technologies, capacity-building and
institutional development, and welcomes the initiatives already being undertaken
thereon, including those with regard to further developing methodologies and
identifying sources of funding, and to report to the Commission at its third
session;
(d) Requests the Secretary-General to invite appropriate organizations of
the United Nations system to examine the concrete modalities and the usefulness
of innovative technology transfer mechanisms, such as "one-stop shops", 5/
"environmentally sound technology rights banks" (ESTRBs) 6/ or "build-operatetransfer"
(BOT) arrangements, and submit concrete recommendations to the
Commission at its third session. Such an effort should take full advantage of
the expertise of the High-level Advisory Board on Sustainable Development and
other eminent technical experts;
(e) Invites appropriate organizations of the United Nations system to
further examine, in close collaboration with other interested parties, including
private sector associations, the operational modalities and concrete
applications of the concept of "benchmarking"; 7/
(f) Calls upon Governments and international organizations to make
available, in close collaboration with relevant financial institutions and the
private sector, information on the conditions and concrete modalities for
setting up and managing venture capital funds for certain types of
environmentally sound technologies, and to share with the Commission the results
achieved and experiences gained in the application of their conditions and
modalities;
(g) Requests the Secretary-General to call upon Governments to explore, in
close collaboration with appropriate organizations of the United Nations system
and other intergovernmental organizations, both regional and multilateral,
including financial institutions, and the private sector, the potential for
joint ventures and the feasibility of providing adequate financing to pursue
such joint ventures, and to report to the Commission at its third session;
(h) Invites UNCTAD, UNDP, UNIDO, UNEP, other appropriate organizations of
the United Nations system, other intergovernmental organizations, both regional
and multilateral, including financial institutions, to assist countries, in
particular developing countries, in applying conditions and new modalities for
the involvement of small and medium-sized enterprises in long-term international
technology partnership arrangements, including assistance in the preparation,
execution and post-servicing of sustainable development projects at the local
level, and to report to the Commission at its third session;
(i) Invites the relevant agencies of the United Nations system, in
particular UNIDO, to undertake, within available resources, sectoral and
techno-economic studies and demonstration projects on the transfer of industrial
environmentally sound technologies and techniques in order to support
sustainable development in the area of industry and to report to the Commission
at its third session on initial results achieved by that time;
5/ "One-stop shops" are referral centres that assist technology users to
obtain all the required information available on all aspects of national
conditions related to the transfer of technology from one source.
6/ "Environmentally sound technology rights banks" are ownership
arrangements; such entities act as a broker for acquiring patent rights to
sounder technologies and make them available to countries in need of technical
assistance, in particular to developing countries on favourable terms.
7/ "Benchmarking" is an instrument for assessing, monitoring and
encouraging best-practice standards at the enterprise level.
(j) Requests the Secretary-General to invite appropriate organizations of
the United Nations system to examine the feasibility of establishing a
consultative group on environmental technology centres, bearing in mind the
experience of the Consultative Group on International Agricultural Research
(CGIAR);
(k) Calls upon Governments, particularly those of developed countries, to
promote the contribution of their universities and research centres in the
transfer of available environmentally sound technologies and expertise,
including through such mechanisms as university grants and workshops, and
encourages international organizations to support those efforts.
91. The Commission makes the following recommendations for effectively
organizing its future work:
(a) As a general rule, issues related to transfer of environmentally sound
technology, cooperation and capacity-building should be reported through the two
Inter-sessional Ad Hoc Open-ended Working Groups;
(b) Previous experience (lessons learned and results achieved in the
relevant initiatives being undertaken during the inter-sessional period) should
be drawn upon to advance the debate and facilitate decision-making in the
regular sessions of the Commission;
(c) There should be greater


[%doctitle%]

3. Freshwater

133. The Commission notes with great concern that many countries are facing a
water crisis, with rapid deterioration of water quality, serious water shortages
and reduced availability of freshwater, which severely affect human health, the
ecosystem and economic development, due to:
(a) Increasing water demand, inappropriate water resource management and a
lack of groundwater protection, particularly in agriculture and in and around
areas of urban concentration;
(b) Natural and man-made causes of water shortages, such as periodic
droughts, falling water tables, changing weather patterns, a reduced capacity of
soils in some areas to retain moisture due to land degradation within catchment
areas, and land degradation generally;
(c) A lack of public awareness about the need for conservation of
freshwater supplies, especially safe drinking water, and for proper sanitation,
associated with a lack of recognition of water as a finite resource, a social
and economic good and an essential part of ecosystems.


134. The Commission is concerned that the water crisis infringes the basic human
needs of present and future generations.

135. The Commission realizes that the crisis needs urgent and concrete action by
national Governments as well as international organizations in order to
implement chapter 18 of Agenda 21, particularly by supporting developing
countries.

136. The Commission recommends that countries give priority attention to the
integrated management, mobilization and use of water resources in a holistic
manner, while stressing the importance of the involvement of local communities,
in particular of women.

137. The Commission calls for water to be considered as an integral part of the
ecosystem, a natural resource and a social and economic good, the quantity and
quality of which determines the nature of its utilization for the benefit of
present and future generations.

138. The Commission recommends that the conservation and sustainable use of
water should be given high priority, and invites the Subcommittee on Water
Resources of the Administrative Committee on Coordination (ACC) to initiate
model projects, to be carried out by relevant agencies, in order to examine and
exemplify the feasibility of water-saving strategies in water-intensive
agricultural, industrial, urban and domestic sectors.

139. The Commission realizes that, in order to create changes through the new
approaches brought about by Agenda 21, special attention should be given to:
(a) The mobilization and integrated management of water, including
pollution minimization and prevention, taking into account implications for
health, the environment, social and economic policy and spatial planning;
(b) Investigations into the environmental flow requirements necessary to
maintain healthy aquatic ecosystems and the development of integrated
institutional methodologies for that purpose;
(c) The integrated management and conservation of river and lake basins,
nationally, internationally and at all appropriate levels;
(d) The involvement of those people that were most directly affected by
water management strategies in the planning of water infrastructure projects;
(e) Efforts to enable the integrated management of water at the lowest
appropriate level and shifting to a system of sustainable demand management;
(f) The implementation of the polluter pays principle, pricing water to
equal its full costs while taking into account the special condition of the
poor, and the prevention of wasteful consumption;
(g) The encouragement of partnership projects between all parties
concerned;
(h) The promotion of a gender-perspective in water resources management;
(i) The modification of patterns of behaviour towards clean water and
hygiene, including the promotion of educational programmes in that sphere;
(j) The promotion of greater efficiency of sustainable water use, water
conservation and protection, particularly in agriculture, and the increased
application of rainwater-harvesting techniques;
(k) The conservation and sustainable management of forests, including the
promotion of afforestation as a significant means of halting soil degradation
and increasing moisture retention;
(l) The bridging of the gap between physical, human and financial
resources and the escalating demand for water and the need for sanitation;
(m) The search for innovations, both technological and non-technological,
to protect our finite and vulnerable water resources, as well as the sharing of
such innovative technologies on a global basis, in particular with developing
countries;
(n) The use of environmental impact assessments with a multidisciplinary
and multisectoral approach as a decision-making tool in water resources
projects.

140. The Commission urges Governments to mobilize, within the framework
established by chapter 33 of Agenda 21, adequate financial resources, through
the use of all available sources and mechanisms, as well as maximizing the
availability and smooth flow of additional resources, to implement chapter 18 of
Agenda 21, and urges United Nations agencies and programmes to provide the
necessary technical assistance, particularly to developing countries.

141. The Commission stresses the importance of capacity-building and the
strengthening of institutional and human resource development programmes, in
particular in developing countries, as an essential condition for efficient
water management, mobilization and protection; priority should be given to the
participation of women and youth at all levels of capacity-building. In that
respect, the Commission takes note of a constituent meeting of the International
Network of Basin Organizations, held in Chambéry, France from 4 to 6 May 1994.

142. The Commission encourages the involvement of the private sector, the
utilization of the "build-operate-transfer" approach and public-private
partnerships in water-related projects undertaken through foreign direct
investment, international financial institutions, United Nations agencies,
bilateral assistance and partnership projects between stakeholders.

143. The Commission takes note, with appreciation, of the outcome of the
International Ministerial Conference on Drinking Water and Environmental
Sanitation, hosted by the Government of the Netherlands (Noordwijk, 22 and
23 March 1994) and of the results of the Round Table on Water and Health in
Underprivileged Urban Areas hosted by the Government of France (Sophia
Antipolis, 21-23 February 1994).

144. The Commission endorses the Action Programme presented in the annex to
document E/CN.17/1994/12 as one of the main instruments for implementing
programme area D of chapter 18 of Agenda 21.

145. The Commission requests that countries include in their 1997 national
reports a specific section on national goals and strategies in the field of
drinking water and environmental sanitation, including, as appropriate, target
dates, with a view to the implementation of the Action Programme and with the
assistance of international organizations.


146. The Commission invites Governments to assist on a voluntary basis in the
furtherance of chapter 18 of Agenda 21 and to report on those activities to the
Commission in 1997. It welcomes in that respect the offer already made by
France, Morocco, the Netherlands and Tunisia regarding the implementation of the
Action Programme.

147. The Commission welcomes the work carried out by the organizations of the
United Nations system through the ACC Subcommittee on Water Resources with
regard to the systematic collection and analysis of information.
148. In that context, the Commission urges the United Nations Environment
Programme (UNEP), the Food and Agriculture Organization of the United Nations
(FAO), the United Nations Industrial Development Organization (UNIDO), the World
Health Organization (WHO), the World Meteorological Organization (WMO) and the
United Nations Educational, Scientific and Cultural Organization (UNESCO), in
collaboration with the United Nations Development Programme (UNDP), the World
Bank and other relevant United Nations bodies, as well as non-governmental
organizations, to strengthen their efforts towards a comprehensive assessment of
freshwater resources, with the aim of identifying the availability of such
resources, making projections of future needs, and identifying problems to be
considered by the special session of the General Assembly in 1997.

149. The Commission recommends to the Economic and Social Council that it invite
the Committee on Natural Resources to address the question of freshwater as part
of the comprehensive assessment at its third session in 1996.

150. The Commission invites Governments to cooperate actively with technical
inputs to the process, taking into account the need for support for the full
participation of developing countries, and welcomes the offer of the Government
of Sweden to contribute by preparing a preliminary assessment of freshwater.

151. The Commission decides to review, at its 1997 session, the result of all
the work outlined in paragraphs 148-150 above, in preparation for the 1997
special session of the General Assembly.

152. The Commission requests the Secretary-General to strengthen coordination
within the United Nations system with a view to concentrating and consolidating
the great amount of international action in the field of water, including the
implementation of chapter 18 of Agenda 21, and to report to the Economic and
Social Council.

153. The Commission further recommends to the Economic and Social Council that
it consider the issue at its coordination segment in 1995.

154. The Commission welcomes the Programme of Action for the Sustainable
Development of Small Island Developing States and urges that adequate support be
given to various strategies identified in the Programme of Action to address
water resources issues, in particular those related to water supply and
environmental sanitation, as well as the health dimension of water quality.

155. The Commission recommends that future international conferences, such as
the International Conference on Population and Development, the World Summit for
Social Development, the Fourth World Conference on Women, the United Nations
Conference on Human Settlements (Habitat II) and others, take into account
relevant international agreements on water resources issues, in particular those
related to water supply and environmental sanitation, as well as the health
dimension of water quality.

156. The Commission invites the Secretary-General to transmit the above
recommendations to those conferences.


[%doctitle%]

1. Protecting and promoting human health

92. The Commission on Sustainable Development takes note of the report of the
Secretary-General (E/CN.17/1994/3) as well as a background paper on health,
environment and sustainable development prepared by the World Health
Organization (WHO) as task manager.

93. The Commission takes note, with appreciation, of the outcome of the
Inter-sessional Workshop on Health, the Environment and Sustainable Development,
held in Copenhagen from 23 to 25 February 1994 and organized by the Government
of Denmark. In that context, the Commission particularly underlines the
importance of the recommendations of the Copenhagen meeting focusing on the need
to integrate health, environment and sustainable development goals and
activities through innovative and holistic approaches.

94. The Commission reaffirms that the promotion and protection of human health
is of central concern in sustainable development, as reflected in the very first
principle of the Rio Declaration on Environment and Development, 8/ which
states that human beings are at the centre of concern for sustainable
development and are entitled to a healthy and productive life in harmony with
nature. In that context, the Commission stresses the fact that the protection
and promotion of human health depend on activities stemming from all sectors.

95. The Commission welcomes the Global Strategy for Health and Environment
developed by WHO and endorsed by the World Health Assembly.

96. The Commission recognizes the critical importance of funding for health and
highlights the need to focus funding on preventive measures. While emphasizing
the importance of adopting a preventive approach to building health-related
services, the Commission also stresses the necessity of responding to the needs
of curative medicine. To meet those requirements, the Commission calls for the
strengthening of the health infrastructure, particularly in developing
countries, with the cooperation of the international community where necessary.

97. The Commission has identified the rural sector and urban slums as
particular social sectors that would benefit from the strengthening of health
systems because special attention in those areas will strengthen the
implementation of the priorities identified in the Commission decisions on human
settlements.

98. Poverty is an underlying significant element to be addressed in the
integrated implementation of health aspects of Agenda 21. Eradicating
malnutrition and hunger, which affects some one billion people in the world, is
a fundamental prerequisite to providing health for all. The Commission
therefore reaffirms the commitments to poverty eradication in the context of
sustainable development contained in the Rio Declaration, and the fundamental
relationship of the eradication of poverty to the overall goals of health
promotion and protection.

99. While recognizing the impact of population growth on health, environment
and development, and vice versa, and looking forward to the outcome of the
International Conference on Population and Development, the Commission
recognizes that the provision of basic and assured health care, particularly to
women and children, is a vital prerequisite to the reduction of high rates of
population growth.

100. The specific needs of vulnerable groups are recognized as priority areas.
In addition to the three vulnerable groups identified in chapter 6 of Agenda 21
(women, children and indigenous people), the Commission takes note of the
similarly special health needs of the aged, the disabled, and the displaced.
The Commission further notes the contribution of food aid as an important aspect
of efforts directed at the improvement of the nutritional and overall health of
vulnerable groups.

101. The Commission notes that traditional health-related knowledge, borne
especially by women and indigenous people, makes a contribution to overall
health and stresses the need for increased research in that field with a view to
supporting its use where adequately validated.
8/ Report of the United Nations Conference on Environment and
Development, Rio de Janeiro, 3-14 June 1992, vol. I, Resolutions Adopted by the
Conference (United Nations publication, Sales No. E.93.I.8 and corrigendum),
resolution 1, annex I.

102. The Commission also notes that the work-place is a source of health-related
problems and at the same time provides a useful community basis for implementing
and monitoring preventive health programmes through the participation of
workers.

103. The Commission underlines that it is of crucial importance to change
consumption patterns, in particular in developed countries, as well as
production patterns, in order to ensure that products and production processes
with adverse health and environmental effects gradually disappear. Detailed and
specific product information, such as adequate labelling, can therefore create
changes in the market towards cleaner products. In that context, the Commission
stresses the need for continually updating the Consolidated List of Products
Whose Consumption and/or Sale Have Been Banned, Withdrawn, Severely Restricted
or Not Approved by Governments", and for undertaking further measures to broadly
disseminate information contained in that list. Furthermore, the Commission
stresses the need for assisting countries to implement the set of guidelines for
consumer protection adopted by the General Assembly in 1985.

104. The Commission expresses deep concern about chemical substances with
potential health hazards that are widely used in industry, consumer products and
food production and processing. The impact on human health, especially of longterm
exposure to low doses of synthetic chemicals with potential neurotoxic,
reproductive or immunotoxic effects, and their synergistic effects on nature, is
not yet sufficiently understood. The Commission therefore emphasizes the need
to control their use and to minimize the emission of hazardous chemicals to
prevent increasing concentrations in the environment.

105. The Commission recognizes the ongoing health reform efforts and emphasizes
the need for further concrete actions in the follow-up to the first review of
progress in implementing the activities of chapter 6, particularly for the 1997
review of Agenda 21. In that context, the Commission recognizes four lines of
health reform identified by WHO as constituting a suitable programme of action
for Governments to pursue within the framework of their national sustainable
development programmes:
(a) Community health development: undertaking health promotion and
protection as part of more holistically conceived community-based development
programmes;
(b) Health sector reform: increasing the allocation of resources to the
most cost-effective health protection and promotion programmes as seen in the
longer run and in the interest of attaining sustainable development;
(c) Environmental health: increasing the understanding of the impact of
policies and programmes of other sectors upon human health and mobilizing
financing and action in those sectors accordingly;
(d) National decision-making and accounting: health impact assessments,
accounting and other means of promoting the integration of health, the
environment and sustainable development into national decision-making with a
view to strengthening health-sector representation and incorporating health and
its financing in development planning.

106. The Commission concludes that the following priorities should receive
particular attention from Governments and the relevant international
organizations:
(a) Strengthening health-sector representation in national decisionmaking,
including the full participation of major groups;
(b) Establishing a firm partnership between health/health-related
services, on the one hand, and the communities being served, on the other, that
respects their rights and local traditional practices, where adequately
validated;
(c) Including population issues in basic health systems, as approved in
chapter 6, paragraphs 6.25 and 6.26 of Agenda 21 and without prejudice to the
outcome of the International Conference on Population and Development;
(d) Including food security, the improvement of the population?s
nutritional status, food quality and food safety in national development plans
and programmes aimed at improved health in the context of sustainable
development;
(e) Reassessing health expenditures with a view to more cost-effective
health protection and promotion measures, including, where appropriate, the
increasing use of economic instruments, such as user fees and insurance systems,
in order to generate funds for efficient health systems;
(f) Assuring that health is integrated into environmental impact
assessment procedures;
(g) Enhancing efforts to prevent and eradicate communicable diseases,
including acquired immunodeficiency syndrome (AIDS) and malaria;
(h) Establishing adequate structures for environmental health services at
the local and, where appropriate, provincial levels in order to further
encourage decentralization of health-related programmes and services and to take
full advantage of the potentials within the sphere of the local authorities;
(i) Increasing public awareness for health aspects, especially with
respect to nutrition, communicable diseases, population issues and health
hazards from modern lifestyles through primary, secondary and adult education.
Special effort should be made to incorporate environmental health issues in the
training of all professionals directly or indirectly faced with environmental
and health problems (e.g., medical professionals, architects and sanitary
engineers);
(j) Enhancing multidisciplinary research into the linkages between health
and environment;
(k) Assuring access, exchange and dissemination of information on health
and environment parameters for everyone, with particular attention to the needs
of vulnerable groups and other major groups;
(l) Ensuring that knowledge of clean technology is disseminated in such a
way that it contributes to the prevention of man-made health problems,
especially concerning the use of pesticides and food production and processing;
(m) Ensuring close collaboration and coordination of concerned United
Nations organizations in the implementation of those priorities;
(n) Building, where possible, on the achievements of existing programmes
developed individually and jointly by United Nations agencies, Governments and
relevant groups in civil society;
(o) Promoting the participation of non-governmental organizations and
other major groups in the health sector as important partners in the development
of innovative action, and strengthening a bottom-up community involvement;
(p) Encouraging further partnerships between the public and the private
sectors in health promotion and protection;
(q) Building up greater institutional capacity in the tangible
implementation of those priorities from the point of conception and planning to
the management and evaluation of appropriate health and environmental policies
and operational elements at community, local, national, regional and
international levels.

107. The Commission takes note of the relevant provisions of the Programme of
Action for the Sustainable Development of Small Island Developing States and
urges that adequate support be given to the overall goals of health promotion
and protection identified in the Programme of Action.

108. The Commission invites the Inter-Agency Committee on Sustainable
Development (IACSD) to consider in its follow-up work on chapter 6 of Agenda 21
and in the preparation of the 1997 review, the following priority areas:
(a) Supporting developing countries and economies in transition in the
development of national environmental health plans as part of national
sustainable development programmes; such plans should (i) address the crosssectoral
aspects of environmental health and identify action by other sectors
for health protection and promotion, and (ii) emphasize the provision of
environmental health services at the local level, along with the development of
primary environmental care;
(b) Extending scientific and public understanding of the cumulative
effects of chemicals in consumer products, plant and animal-based food, water,
soil and air on human health. Those chemicals include agricultural and
non-agricultural pesticides, as well as other chemicals with, inter alia,
neurotoxic, immunotoxic and allergic effects. Special attention should be given
to the impacts on vulnerable groups;
(c) Determining mechanisms that identify and control newly emerging
infectious diseases and their possible environmental linkages;
(d) Providing a status report on the health implications of the depletion
of the ozone layer based on epidemiological studies in the context of the
INTERSUN project, involving, inter alia, WHO, the International Agency for
Research on Cancer (IARC), the United Nations Environment Programme (UNEP) and
the World Meteorological Organization (WMO), taking into account ongoing work
under the Montreal Protocol;
(e) Developing an effective and efficient environmental health information
system to collect and disseminate national, regional and international
information on newly emerging environmental health problems by 1997.

109. The Commission requests that information on the status of community
participation in the health sector be included in the report of the Secretary-
General to be submitted for the 1997 review of Agenda 21.

110. The Commission invites WHO, as task manager, to continue to monitor
progress made by the United Nations and other international agencies in
implementing chapter 6 of Agenda 21. The Commission requests WHO to report
periodically to IACSD on that matter and to make such reports available to the
Commission.

111. The Commission requests countries to include in their national reports for
the 1997 review session of the Commission a specific section on steps taken to
promote and protect human health, highlighting the positive examples and models,
indicating progress achieved and experience gained, particularly experience from
which others might benefit, and the specific problems and constraints
encountered.

112. The Commission calls upon Governments to strengthen their commitments to
the health reform process, inter alia, through national, regional and
international inter-sessional meetings that focus on special linkages between
the health sector and other sectors.

113. The Commission stresses the need for full implementation of the agreements
on technology transfer contained in chapter 34 of Agenda 21 and the relevant
decisions of the Commission. In that context, the Commission urges the
international community to find concrete ways and means to transfer appropriate
health-related technologies, including medical and pharmaceutical technologies,
to developing countries and economies in transition.

114. The Commission urges Governments to mobilize financial resources to respond
to the above priorities, as agreed in chapter 33 of Agenda 21 and the relevant
decisions of the Commission.

115. The Commission invites WHO and other relevant intergovernmental bodies to
take those recommendations into full account in their future work.


[%doctitle%]

2. Human settlements

116. The Commission takes note, with appreciation, of the Secretary-General?s
report (E/CN.17/1994/5) and the background paper prepared by the United Nations
Centre for Human Settlements (Habitat) on promoting sustainable human
settlements development.

117. The Commission recognizes, in the context of human settlements development,
the importance of achieving sustainability and the goals of Agenda 21,
particularly in view of the high rate of urbanization and the consequent
challenge to the local and global environment, and also in view of the lack of
shelter and sanitation for a large segment of the population in developing
countries. While the urban development patterns in a number of countries,
particularly in the developed countries, provide for a satisfactory standard of
living for sizeable parts of the population, they also place an extraordinary
strain on the world?s ecological resources and systems.

118. The Commission suggests that Governments take a balanced approach to all
programme areas of chapter 7 and chapter 21 of Agenda 21. Land-resource
management, urban transportation, access to adequate shelter, and the management
of solid wastes, especially in developing countries, are areas requiring greater
attention. The Commission notes the close linkage between human settlements and
the issues of water supply, sanitation and health.

119. The Commission draws special attention to the potential contributions of
the second United Nations Conference on Human Settlements (Habitat II), to be
held in Istanbul in June 1996, and to the crucial role of the United Nations
Centre for Human Settlements. That would be a key Conference, which was
expected to support and further advance the objectives of Agenda 21.

120. The Commission draws attention to the linkages between unsatisfactory
shelter and environmental conditions and the lack of access to land and security
of tenure, on the one hand, and social divisions, violence and the degradation
of personal safety, on the other. Governments at all levels should recognize
that insecure and inhuman conditions for living and working both violate human
rights and are a primary cause of social conflict and violent disruptions of
civil society.

121. The Commission recognizes that human settlements development need to take a
comprehensive approach that treats urban and rural problems as integral parts of
the overall human settlements equation, since developing countries, in
particular, face rapid urban population growth due, inter alia, to increasing
migration from rural to urban areas.

122. The Commission recommends that Governments and the international community
give priority attention to human settlements programmes and policies to reduce
urban pollution and to improve and expand urban services and infrastructure,
particularly in low-income communities. Those efforts are necessary to
safeguarding human health, preserving the integrity of the natural environment
and ensuring economic productivity. The "brown agenda" (a concept that
addresses urban pollution resulting from inadequate water supply, sanitation and
drainage, poor industrial and solid-waste management, and air pollution) is also
highlighted as an umbrella approach to urban pollution issues that can be used
to link and better implement Agenda 21 in the urban context.

123. The Commission welcomes the relevant provisions of the Programme of Action
for the Sustainable Development of Small Island Developing States.

124. The Commission underscores the crucial importance of action at the local
level and confirms the importance of the local Agenda 21 process, as specified
in chapter 28 of Agenda 21. The participation of people at the local level,
including major group representatives, to facilitate effective local action and
efficient management of human settlements, is indispensable. Local authorities
and their national and international associations are important partners for the
decentralized implementation of appropriate human settlements programmes.

125. The Commission notes the financial and technical requirements needed to
implement the human settlement activities set out in Agenda 21 and emphasizes
the substantial resource and technology gap faced by developing countries and
economies in transition in addressing human settlements problems.

126. The Commission also notes the great potential that exists within the human
settlements context for increased economic activity, job creation and related
revenues, inter alia, as a result of building construction programmes. Such
positive potentials can be realized through appropriate sustainable human
settlements policies that emphasize greater use of local materials and human
resources, encouraging and supporting design efficiency and energy-saving
methods, among other initiatives. In that context, the work-place and the role
of workers can be an important focus for the implementation of policies and
programmes.

127. The integral role of the private sector in the development and
dissemination of cost-effective and sustainable building materials, increased
energy and materials efficiency, and sustainable waste management is underlined.
In that context, the Commission particularly highlights the need to encourage
local, small and micro-enterprises.

128. The Commission emphasizes the need to strengthen human settlements
management capacity, where appropriate, as a necessary prerequisite for the
successful implementation of all human settlements-related components of
Agenda 21. Particular emphasis is also placed on building the capacity of
relevant major groups to encourage and enhance their contributions to local,
regional and international human settlements development efforts.

129. The Commission notes, in regard to solid-waste management, that the
promotion of waste recycling and reuse provides a unique opportunity in waste
management; it helps to solve the problem of environmental degradation and has
the potential to alleviate urban poverty and generate income among the urban
poor. However, that requires supply-side policies aimed at promoting and
supporting resource recovery, and demand-side policies aimed at stimulating
markets for recovered materials and products.

130. The Commission recognizes that many developing countries are dependent on
imported technologies for infrastructure development and improvements, including
for solid-waste management, and notes that the international community has an
important role to play in facilitating the transfer of environmentally sound
technology. At the same time, full use should be made of locally available
technologies that can be adapted to existing needs.

131. The Commission, therefore:
(a) Calls upon Governments to strengthen the networks of small- and
medium-sized settlements in rural regions in order to provide attractive
settlement opportunities and ease migratory pressure on large metropolises, and
recommends that Governments implement programmes of rural development by
expanding employment opportunities, providing educational and health facilities,
strengthening technical infrastructure, and encouraging rural enterprises and
sustainable agriculture, and further calls upon the international community to
support those rural development programmes;
(b) Recommends that Governments and the private sector, particularly in
the developed countries, increase their efforts to develop new and
environmentally sound technologies for urban transportation, other
infrastructure and buildings, as well as environmentally sound products, in
order to reduce demands on natural resources. Those technologies and products,
as well as the information related to them should, where appropriate, be made
accessible to urban and environmental authorities in all countries;
(c) Calls upon Governments to strengthen the economic, political and
social institutions of civil society so as to enhance, especially at the
municipal level, the capacity of local authorities, training institutions,
community groups and non-governmental organizations to act as effective partners
and organizers of sustainable development activities at the local level. The
Commission further invites local authorities and their associations to exchange
know-how on the effective management of human settlements, including
satisfactory coordination and burden-sharing among central city and suburban
local authorities in urban agglomerations, and, as appropriate, in rural areas.

132. The Commission, further:
(a) Requests Governments, the international community, the United Nations
Centre for Human Settlements, the private sector and non-governmental
organizations to fully support the preparatory process for the Second United
Nations Conference on Human Settlements (Habitat II), including at the regional
level;
(b) Urges appropriate United Nations agencies, through the Inter-Agency
Committee on Sustainable Development (IACSD), to mobilize legal, economic and
environmental expertise for the development of equitable and sustainable land
use planning and management strategies for human settlements of all sizes;
(c) Calls upon Governments and international organizations to emphasize
"best practice" in delivery mechanisms, including demand-driven systems,
increased networking, bottom-up capacity-building, demonstration/replication
strategies, regional coordination and decentralized local management and, in
that context, called for a review of "best practice" applications to provide a
basis for the systematic dissemination of effective models;
(d) Invites the appropriate United Nations agencies and organizations,
through IACSD, to launch a demonstration initiative for environmentally friendly
urban transport. That initiative should draw together the best available
expertise on urban infrastructure management and should facilitate the exchange
of knowledge on "best practices" between developed and developing countries.
The Secretary-General is invited to report to the Commission on progress in that
area by 1997;
(e) Invites appropriate United Nations agencies and international
organizations, through IACSD, to consider the feasibility of preparing and
implementing integrated environment-upgrading demonstration projects for human
settlements in three mega-cities: one each in Africa, Asia and the Pacific, and
Latin America and the Caribbean. The Secretary-General is invited to report to
the Commission on progress in that area by 1997;
(f) Calls upon Governments and international agencies, in particular the
United Nations Centre for Human Settlements and UNIDO to support and encourage
local, small and micro-enterprises, which, particularly in the context of local
development, develop and offer environmentally sustainable building material
components and related products, as well as environmentally sound energy
systems;
(g) Urges Governments and international organizations to give more
concerted attention to the management of solid wastes. That should include
promoting greater awareness of the environmental and health risks from solid
waste and the impact of changes in production and consumption patterns on the
volume and type of such waste, as well as utilizing the resources and potential
of the private sector, including the formal and informal sectors, and using
indigenous technologies and techniques;
(h) Calls upon appropriate United Nations agencies and international
organizations, through IACSD, to establish joint programming mechanisms in the
area of human settlements that are specifically focused on urban services and
urban poverty and their linkages with health and the environment and urges donor
organizations to support those joint programming initiatives;
(i) Urges United Nations agencies and other international bodies to
include in their urban monitoring and reporting activities appropriate
indicators for the environmental performance of cities;
(j) Urges the international community, in carrying out its assistance
activities, to explore, through appropriate authorities, the full range of joint
programming options and new alliances with, inter alia, local authorities and
associations of local authorities, national and international non-governmental
organizations, the private sector and women?s and community groups;
(k) Requests the Secretary-General, in the context of reporting on
section III of Agenda 21, to give special attention to the role of local
authorities and to the progress they are making in the implementation of the
human settlements objectives of Agenda 21;
(l) Invites the task manager to continue to monitor progress made by the
United Nations and other international agencies in implementing chapter 7 of
Agenda 21 and to inform the Commission periodically of such progress through
IACSD;
(m) Calls upon Governments and international organizations to focus
greater attention on meeting the capital investment requirements of human
settlements through enhanced resource-mobilization strategies and policies that
facilitate greater flows of private investment in infrastructure and services
and all forms of public and private sector partnership in human settlements
development;
(n) Urges Governments to mobilize financial and technological resources,
as agreed in chapters 33 and 34 of Agenda 21 and in the relevant decisions of
the Commission, and to respond to the priorities contained in the present
decision.


[%doctitle%]

4. Trade, environment and sustainable development

25. As the organ responsible for monitoring progress in the implementation of
Agenda 21, the Commission sets forth some initial perspectives for consideration
in subsequent work on trade and environment issues.

26. In the framework of the implementation of chapter 2 of Agenda 21, the
Commission emphasizes the aim of moving towards the overall concept of
sustainable development. In aiming at sustainability, full consideration should
be given to the special conditions and development needs of the developing
countries and the countries with economies in transition. An open, balanced and
integrated approach towards sustainability through an open, equitable and
non-discriminatory multilateral trading system, improved market access for
products from developing countries, effective environmental protection and
mutually supportive trade and environment policies should ensure close
cooperation with all policy makers involved, as well as with the private sector
and non-governmental organizations.

27. The Commission recognizes that relations in the field of trade and economic
endeavour should be conducted with a view to raising standards of living,
ensuring full employment and a large and steadily growing volume of real income
and effective demand, and expanding the production of and trade in goods and
services, while allowing for the optimal use of the world?s resources in
accordance with the objective of sustainable development, seeking both to
protect and preserve the environment and to enhance the means for doing so in a
manner consistent with the respective needs and concerns of countries at
different levels of economic development.

28. The Commission considers that trade liberalization can make a major
contribution to sustainable development and stresses that protectionism should
be resisted. The Commission also regards the achievement of a safe and healthy
environment, through strong and effective international and domestic
environmental protection efforts, as an essential component of sustainable
development. The Commission further stresses that there is a need to decrease
subsidies that have harmful environmental and trade-distorting effects. In
addition, market opportunities and export prospects could be improved by
complementing trade policies through sound domestic economic and environmental
policies. The Commission points out that an open, equitable and
non-discriminatory multilateral trading system and the adoption of sound
environmental policies are important means of addressing the environmental
implications of trade. The Commission urges national authorities to endeavour
to promote the internalization of environmental costs and the use of economic
instruments, taking into account the approach that the polluter should, in
principle, bear the cost of pollution, with due regard to the public interest
and without distorting international trade and investment.

29. The Commission welcomes the successful conclusion of the Uruguay Round of
multilateral trade negotiations, which is expected to bring about the further
liberalization and expansion of world trade; its full implementation will
enhance the trade and development possibilities of developing countries and
provide greater security and predictability to the international trading system.
It notes that regional and subregional economic integration processes, including
those among developing countries, have the potential of contributing to an
improvement in the medium-term prospects for world economic growth and for an
even more rapid expansion of world trade.

30. The Commission also notes with concern that the benefits of trade
liberalization will accrue more to those developing countries that have already
been pursuing more export-oriented policies than to certain developing countries
that will continue to face major difficulties, particularly those highly
dependent on trade preferences, those that are net food-importers and those
dependent on primary commodity exports, particularly in Africa. In this regard,
the Commission takes note of the decision on measures concerning the possible
negative effects of the reform programme on the least developed and net foodimporting
developing countries, taken at the Marrakesh Ministerial Meeting in
April 1994. The Commission emphasizes that for all developing countries to
benefit more fully from trade liberalization, the achievement of other
objectives identified in Agenda 21, particularly better functioning of commodity
markets, increasing foreign direct investment in developing countries and
financial assistance, including debt relief, are important. It notes that
mutually supportive trade and environment policies and structural adjustment
policies that would, inter alia, remove biases against exports, discourage
inefficient import substitution, improve infrastructure important to trade,
diversify economies to reduce dependence on primary commodities, particularly in
Africa, and improve domestic market efficiency would also increase the potential
for gains from trade liberalization. It hopes that the promotion of trade in
environmentally friendly products and technologies would also further improve
trading opportunities for developing countries. Bearing in mind the objective
of making trade and environment mutually supportive, the Commission underlines
the importance of effective multilateral cooperation to protect the environment
and also of preserving and enhancing the ability of countries to achieve and
maintain high levels of environmental protection while pursuing an open,
non-discriminatory, multilateral trade system.

31. The Commission notes that important progress was made in addressing trade
and environment issues in the Uruguay Round but recognizes that further progress
is needed to address unresolved issues and ensure that the international trading
system is responsive to environmental concerns. In this regard, the Commission
supports the decision taken at the Marrakesh Ministerial Meeting in April 1994
to establish the Committee on Trade and Environment. The Committee has a broad
mandate and will report to the first Ministerial Conference of the World Trade
Organization (WTO), to be held probably in 1997. Together with the improved
framework for dispute settlement, the Uruguay Round agreements and the decision
on trade and environment advance several of the trade, development and
environment issues of Agenda 21. The Commission recognizes that it needs to
interact with WTO in future work on these matters. It also considers that work
undertaken in the Committee on Trade and Environment would benefit from
cooperation with the United Nations Conference on Trade and Development (UNCTAD)
and the United Nations Environment Programme (UNEP).

32. The Commission emphasizes the results of UNCED relating to trade,
environment and sustainable development, including Principle 12 of the Rio
Declaration and Agenda 21, paragraph 2.22 of which calls upon Governments to
encourage the General Agreement on Tariffs and Trade (GATT), UNCTAD and other
relevant international and regional economic institutions to examine, in
accordance with their respective mandates and competences, a number of
propositions and principles, such as ensuring that environment-related
regulations or standards, including those related to health and safety
standards, do not constitute a means of arbitrary or unjustifiable
discrimination or a disguised restriction on trade and avoiding unilateral
actions to deal with environmental challenges outside the jurisdiction of the
importing country. Environmental measures addressing transborder or global
environmental problems should, as far as possible, be based on an international
consensus. Domestic measures targeted to achieve certain environmental
objectives may need trade measures to render them effective. Should trade
policy measures be found necessary for the enforcement of environmental
policies, certain principles and rules should apply. These could include,
inter alia, the principle of non-discrimination; the principle that the trade
measure chosen should be the least trade-restrictive necessary to achieve the
objectives; an obligation to ensure transparency in the use of trade measures
related to the environment and to provide adequate notification of national
regulations; and the need to give consideration to the special conditions and
developmental requirements of developing countries as they move towards
internationally agreed environmental objectives.

33. The Commission notes the importance of developing a framework to facilitate
the assessment of the environmental impact of trade policies, taking into
account the special needs and conditions of developing countries. Any such
assessment should be carried out within the overall perspective of promoting
sustainable development. In this context, there is a need to foster a better
understanding of the trade implications of a number of environmental concepts
and principles, such as the polluter pays principle, the precautionary principle
and life-cycle management. In this context, there is also a need to consider
the interactions between trade, technological cooperation and changes in
production and consumption patterns. Further work in this area by UNEP and
UNCTAD, in cooperation with other relevant organizations, would represent a
valuable contribution to the objective of making trade and environment policies
mutually supportive in promoting sustainable development.

34. In the context of the overall aims of sustainable development, the
Commission welcomes the substantial progress achieved in GATT/WTO, UNCTAD and
UNEP. The Commission further underlines efforts to make trade and environment
mutually supportive through, inter alia, strengthening technical assistance in
the capacity-building undertaken by UNCTAD, UNDP and UNEP. As GATT/WTO, UNEP
and UNCTAD are key actors in the implementation of chapter 2, sections A and B,
of Agenda 21, the Commission emphasizes the need for close cooperation and
complementarity in their work, as well as the need for appropriate inputs from
other organizations involved, such as UNDP, the World Bank and the Organisation
for Economic Cooperation and Development (OECD). The Commission underlines the
importance of complementarity in work on the identification and development of
international trade rules and international environmental law. For the purpose
of fostering cooperation, the Commission, UNCTAD and UNEP should be
appropriately represented at the WTO Committee on Trade and Environment. In
addition, there should be close cooperation between GATT/WTO and UNEP, in
particular, when considering the relationship between the provisions and dispute
settlement mechanisms of the multilateral trading system and those of
multilateral environment agreements, including with respect to the question of
compliance with the trade provisions in multilateral environmental agreements
negotiated under the auspices of the United Nations.

35. Regarding national environmental requirements and international trade, the
Commission notes that further examination and work are needed to ensure that the
trading system is adequately responsive to the needs and possibilities of
Governments in taking action to protect the environment in accordance with
international law, including health and environmental requirements. Further
consideration will have to take into account that: (a) there are legitimate
reasons for diversity in environmental regulations across countries;
(b) differences in the relative costs of production constitute the very basis
for gains from international trade; (c) the effects of national environmental
regulations should be studied to determine whether they have a greater potential
impact on trade competitiveness than other non-trade policy measures;
(d) disguised protectionism in the name of environmental standards should be
avoided; (e) efforts should be geared to promoting the convergence of
environmental standards and regulations at a high level of environmental
protection, while bearing in mind that regulations and standards that are valid
in the most advanced countries may be inappropriate and have unwarranted social
costs for the developing countries; (f) the transparency of environmental
regulations and standards should be ensured and adequate information should be
provided in particular to developing countries.

36. Regarding further international cooperation in the field of environmental
requirements, the Commission notes the need for a careful examination of the
issues relating to competitiveness, particularly in the light of evidence that,
in some cases, environmental compliance costs are a small proportion of total
costs. It should, on the other hand, be clearly seen that investing in
environmental activities has many positive effects, such as the improvement of
market opportunities and job creation.

37. The Commission takes note of the ongoing consultative process in UNCTAD on
the establishment of an ad hoc working group on trade, environment and
development as a result of the mid-term review at the eighth session of UNCTAD
and encourages interaction with GATT/WTO and UNEP. The Commission welcomes the
joint UNEP/UNCTAD programme and welcomes the participation of GATT/WTO as well
as other relevant organizations, including OECD, the private sector and
non-governmental organizations. In this regard the Commission supports the
proposal of UNEP and UNCTAD to hold, in a forum complementary to WTO and other
forums as a follow-up activity of the joint informal ministerial meeting in
February 1994 in Geneva, a working-level session and a high-level/ministerial
meeting on trade, environment and sustainable development to examine (a) the
role of environmental policies as they relate to trade liberalization policies,
(b) the promotion of trade in environmentally friendly products and technologies
and (c) the promotion of international cooperation in the field of productrelated
environmental policy instruments.

38. The Commission also welcomes the relevant provisions of the Programme of
Action for the Sustainable Development of Small Island Developing States 2/
and calls for adequate support for the implementation of the provisions of the
Programme.

39. The Commission suggests that consideration be given by Governments and
relevant organizations to (a) further development of trade-compatible
environmental instruments, such as non-discriminatory eco-labelling as well as
non-discriminatory certification and verification schemes, taking into account
the financial and institutional capacity of developing countries to do so; and
(b) cooperative work on environmental standards based, inter alia, on input from
the International Standardization Organization (ISO), with due regard to the
differentiated responsibilities of developed and developing countries.

40. The Commission reaffirms its role, in accordance with General Assembly
resolution 47/191, in monitoring progress in the implementation of Agenda 21 and
activities related to the integration of environmental and developmental goals
throughout the United Nations system. The Commission agrees to review annually
developments in the area of trade, development and environment, according to its
mandate, with a view to identifying possible gaps, and to promote cooperation
and coordination. The Commission recommends that GATT/WTO, UNCTAD and UNEP
continue to provide annual reports to the Commission on their activities
concerning trade and environment. The Commission recommends that relevant
reports from the international financial institutions should be made available
to facilitate its work. The Commission calls on the Secretary-General to ensure
an appropriate division of labour within the United Nations system in the area
of trade and environment through the IACSD and its task-manager approach.

41. In order to gain a better understanding of the impact of internalization of
environmental costs on competitiveness and trade earnings, particularly in
developing countries, the Commission recommends that the Secretary-General,
through the Economic and Social Council, seek the views of Governments, regional
economic integration organizations, the private sector and non-governmental
organizations, on an analytical study to be undertaken on the relationship of
environmental protection to international competitiveness, job creation and
development. The Commission stresses that this work could benefit from the
input of various relevant institutions, such as the World Bank, GATT/WTO,
UNCTAD, UNEP, UNIDO, UNDP, OECD and ILO.

42. Finally, the Commission highlights the importance of achieving
transparency, openness and the active involvement of the public and experts, in
relation to work on trade and environment, including work within WTO, UNEP and
UNCTAD, and to dispute settlement processes. The Commission recognizes that
there is a considerable need for improvement in these areas, and looks forward
to the development of specific recommendations in this regard by Governments and
the appropriate organizations, in accordance with chapter 38 of Agenda 21.


[%doctitle%]

111. The Commission on Sustainable Development recalls the financial
recommendations and commitments set out in chapter 33 of Agenda 21, especially
those in paragraphs 33.13 and 33.14 thereof.
112. The Commission emphasizes that, in general, the financing for the
implementation of Agenda 21 will come from a country’s own public and private
sectors. For developing countries, particularly the least developed countries,
official development assistance (ODA) is a main source of external funding;
substantial new and additional funding for sustainable development and the
implementation of Agenda 21 will be required. Furthermore, ODA plays a
significant role in addressing sustainable development concerns in those areas
of the world, as well as in addressing social and environmental concerns and
meeting the needs of certain infrastructural sectors that currently are not
favourably placed to attract private financial flows, including foreign direct
investment. The decline of ODA, both in absolute terms and as a percentage of
gross national product (GNP), remains a matter of great concern to the
Commission.
113. The Commission urges the developed countries to continue pursuing policies
aimed at increasing the flow of ODA to developing countries, consistent with the
commitments that they made at the United Nations Conference on Environment and
Development.
114. The Commission, in its work on monitoring the implementation of
recommendations and commitments of Agenda 21 related to ODA, will promote:
(a) New approaches to enhancing the effectiveness of ODA and increasing it
within relevant bilateral and multilateral mechanisms with the objective of
achieving the United Nations target of 0.7 per cent of GNP, as reaffirmed in
chapter 33.13 of Agenda 21, as soon as possible;
(b) Improved cooperation and coordination among national institutions in
recipient and donor countries, international organizations (including financial
institutions) and the private sector and the non-governmental organizations, as
appropriate, inter alia, through the elaboration of national sustainable
development strategies and plans, with a view to enhancing the effectiveness of
ODA delivery and use;
(c) Use of ODA to leverage additional domestic and external financial
resources, through various innovative schemes (such as co-financing and joint
ventures, underwriting of country risks, and venture capital funds) in order to
more efficiently mobilize new financial flows for sustainable development from
all potential sources. In this context, the Commission could initiate casestudies
of national experiences in this area;
(d) Public and political support in donor countries for raising the levels
of ODA, including through highlighting its crucial role for sustainable
development and reform measures, as appropriate, in recipient countries that
increase its effectiveness;
(e) International awareness of the importance of an adequate eleventh
replenishment of the International Development Association (IDA), which is to
come into effect from June 1996.
-23-
115. The Commission welcomes the increase in private capital flows, while
recognizing that they are concentrated in a few countries and sectors. However,
the fact that their stability and sustainability and their environment and
technology transfer content are not assured remains a cause for concern for the
Commission and requires monitoring. Therefore, the Commission invites UNCTAD
and the international financial institutions, in particular the Bretton Woods
institutions, to carry out further studies in this regard, focusing on the high
volatility and short-term nature of a substantial part of such flows and
proposing measures to stimulate more long-term capital flows and to reduce the
destabilizing effects of highly volatile short-term financial flows, and to
share the results with the Commission.
116. The Commission emphasizes that developed and developing countries should
encourage policies to promote private foreign investment in developing countries
that can contribute to sustainable development. In addition, consideration
should be given to the establishment of mechanisms and international
arrangements to address the effects of sudden outflows of private capital from
developing countries.
117. The Commission reiterates the fact that further progress is essential for
the achievement of an effective, equitable, development-oriented and durable
solution to the external debt problems of a large number of developing
countries, particularly the poorest and most heavily indebted among them. The
Copenhagen Declaration on Social Development of the World Summit for Social
Development suggests even more favourable terms of debt relief measures. It
highlights the importance of ensuring the urgent implementation of existing debt
relief agreements and negotiating further initiatives, in addition to existing
ones, to alleviate the debt of the poorest and heavily indebted low-income
countries at an early date, especially through more favourable terms of debt
forgiveness, including application of the terms of debt forgiveness agreed upon
in the Paris Club in December 1994, which encompass debt reduction, including
cancellation or other debt relief measures; where appropriate, these countries
should be given a reduction of their bilateral official debt sufficient to
enable them to exit from the rescheduling process and resume growth and
development.
118. The Commission further emphasizes that measures to tackle the problem of
external debt should also include the consideration and implementation, where
appropriate, of innovative mechanisms such as debt-for-nature and debt-forsocial
development swaps. The Commission takes note of successful examples of
debt-for-sustainable development swaps and recommends their further promotion,
as appropriate.
119. The Commission urges international financial institutions and all relevant
development agencies to continue to increase financial flows for sustainable
development. Specifically, these institutions should extend their recent
efforts beyond incorporating environmental and social considerations into their
projects and activities by integrating economic, social and environmental goals
of sustainability from the outset into their institutional mandate, overall
development policies, strategy formulation, and priorities established by
Agenda 21 and other related international instruments and agreements.
120. The Commission notes the importance of the further development of
sustainable development indicators and their possible application, once agreed,
that aim at integrating economic, social and environmental goals. The further
development of sustainable development indicators should be undertaken, with the
-24-
effective participation of all relevant parties in particular developing
countries.
121. The Commission and the policy-making bodies of the international financial
institutions (in particular the Interim and Development Committees) should
strengthen communication, interaction and partnership with a view to promoting
approaches and activities geared towards meeting the objectives of sustainable
development under Agenda 21.
122. The Commission notes that the restructured and replenished Global
Environment Facility (GEF) will continue on an interim basis as the entity
entrusted with the operation of the financial mechanisms of the Convention on
Biological Diversity 18/ and the United Nations Framework Convention on
Climate Change. The Commission emphasizes the importance of the speedy
implementation of these commitments and the other responsibilities of GEF and
recalls that, at its second session, in 1994, it stated that the first
replenishment of the restructured GEF was a first step at a minimum level, and
noted that there would be a need for further replenishment of its funds as the
implementation of commitments under the various agreements and objectives
envisaged for the Facility proceeded. 19/ Furthermore, the Commission
recommends that GEF procedures be further improved to speed up project
implementation without compromising the quality of appraisal and participation.
It notes the fact that GEF procedures are being reviewed.
123. The Commission stresses the need for the fulfilment of the financial
commitments contained in Agenda 21. The Commission encourages the mobilization
of domestic financial resources, inter alia, through the use of economic
instruments and policy reforms in both developed and developing countries and
the establishment of national environmental funds. It emphasizes that these
measures should not be seen as a substitute for the needed increased
international financial flows from all sources, including ODA, but that both
channels of financing should supplement and mutually reinforce each other.
124. The Commission’s review of the use of economic instruments in developed
countries, countries with economies in transition and developing countries
demonstrates clearly that - depending on their specific conditions - they have
in varying degrees attempted to achieve a less distortionary tax system by
introducing environmental taxes. In addition, valuable experience is being
gained in the use of the various other economic instruments. The Commission
emphasizes that future discussions on economic instruments should explore ways
and means of overcoming obstacles to their implementation in developed
countries, developing countries and countries with economies in transition.
Particular attention should be paid to specific country situations and the
phasing out of environmentally unfriendly practices, as well as to problems of
capacity-building in developing countries and distributional problems.
125. The Commission underscores the importance of strengthening national
capacities and capabilities in the use of economic instruments, including the
elimination of environmentally unfriendly subsidies and other practices, within
the context of national strategies and policies for sustainable development. It
recommends that these efforts should be supported by Governments and
18/ See UNEP, Convention on Biological Diversity (Environmental Law and
Institutions Programme Activity Centre), June 1992.
19/ Official Records of the Economic and Social Council, 1994, Supplement
No. 13 (E/1994/33/Rev.1), chap. I, para. 60.
-25-
international organizations, in particular UNDP, UNEP, UNCTAD, the International
Monetary Fund (IMF), the World Bank and the regional commissions.
126. The Commission’s review of the usefulness of the national environment funds
shows that in developed countries, countries with economies in transition and
developing countries, there is a great variety of different types of funds at
work. In many countries these funds play an important and constructive role as
effective financial mechanisms. Their role should be evaluated from the
perspective of searching for optimal solutions. In this context, particular
attention should be given to the advantages and disadvantages of earmarking
funds for environmental expenditures.
127. The Commission will provide leadership in developing further proposals for
promoting the exchange of experiences in the implementation of policy reforms
for sustainable development.
128. The Commission, in its discussion of innovative mechanisms for resource
mobilization, noted that the Ad Hoc Inter-sessional Working Group on Finance
considered in a preliminary manner the feasibility and utility of such measures
as an environmental user charge on air transport, activities implemented jointly
and internationally tradable carbon dioxide (CO2) permits.
129. The Commission notes that the air transport of passengers and cargo is a
source of environmentally damaging emissions and would consider it worthwhile to
examine in detail a properly designed environmental user charge on air transport
if an in-depth study demonstrated its need and feasibility. The Commission
recommends that such a study be undertaken in cooperation with the International
Civil Aviation Organization (ICAO) and other relevant bodies. It also
recommends that the study address the environmental, economic, legal,
administrative, and political aspects of such a mechanism, taking into account
the particular needs and conditions of developing countries.
130. The Commission’s discussion on internationally tradable CO2 permits and
activities implemented jointly reflects concerns and recognition about their
extreme complexity and makes it clear that work undertaken in this regard should
be pursued in the context of the United Nations Framework Convention on Climate
Change, taking into account the situation of countries, particularly the
developing countries, as specified in the relevant paragraphs of the Convention.
In the context of its discussion, the Commission noted the outcome of the first
Conference of the Parties to the Convention, in particular the launching of a
pilot phase for activities implemented jointly. The Commission noted that
participation in the pilot phase is voluntary and that activities implemented
jointly should be compatible with and supportive of national environment and
development priorities and strategies, contribute to cost effectiveness in
achieving global benefits and be conducted in a comprehensive manner covering
all relevant sources, sinks and reservoirs of greenhouse gases. It notes that
no credits are to be provided to any party as a result of greenhouse gas
emissions reduced or sequestered during the pilot phase, and that developed and
developing countries and countries with economies in transition can be involved
in the pilot phase on a voluntary basis.
131. The Commission emphasizes that financing the transfer of environmentally
sound technology and biotechnology should be considered within the context of
the relevant chapters of Agenda 21. The transfer of environmentally sound
technology, on favourable terms, including concessional and preferential terms,
as mutually agreed, taking into account the need to protect intellectual
property rights as well as the special needs of developing countries for the
-26-
implementation of Agenda 21, in accordance with chapter 34 of Agenda 21, is
highlighted by the Commission as having a particularly important role to play in
realizing the goals of sustainable development.
132. The Commission notes that fostering investments in environmentally sound
technologies (ESTs) requires that Governments promote a favourable environment
for the transfer of technology, the adoption of favourable policies for business
development and the creation of a wider framework to encourage investments in
the technology development process, including research, development and
adaptation of technology. The particular problems of small- and medium-sized
enterprises were emphasized.
133. The Commission notes that financing of the transfer of ESTs can also be
promoted by partnerships between the private and public sector, such as publicly
funded intermediaries for EST transfer and publicly sponsored investment funds
with a focus on these technologies. Venture capital funds were particularly
noted. Furthermore, the Commission recommends that the need for and
effectiveness of environmentally sound technology rights banks 20/ and the
practical feasibility of establishing such banks should be further studied.
134. The Commission encourages the use of ESTs and such innovative private
sector financing mechanisms as build-operate-transfer (BOT) schemes for
promoting EST transfer, including building the capacities of developing
countries and countries with economies in transition to negotiate BOT contracts.
135. In addressing the financing of biotechnology, the Commission takes note of
proposals for several funding support mechanisms such as (a) the establishment
of an international biosafety trust fund, (b) the establishment of an
international venture capital fund for biotechnology and (c) creation of an
expert volunteer corps in biotechnology. These actions require further study
and consultations among interested Governments before concrete proposals can be
made.
136. The Commission recognizes that many of the sources of finance, economic
instruments and innovative mechanisms considered in the report of the Secretary-
General on financial resources and mechanisms for sustainable development:
overview of current issues and developments (E/CN.17/1995/8) are also applicable
to financing the transfer of technology and biotechnology sectors.
Nevertheless, detailed study would be required on the application of the "matrix
approach" and countries may choose the most appropriate mix of instruments and
mechanisms.
137. The Commission notes that the analytical framework presented by the matrix
contained in the annex to the above-mentioned report of the Secretary-General is
illustrative and may help to integrate the application of the range of financial
and policy options with individual sectors and cross-sectoral activities, and
could prove valuable in identifying the appropriate and most promising options,
as well as complementarities, taking into account the social, economic and
distributional impact of policy options and the principle of common but
differentiated responsibilities.
20/ Environmentally sound technology rights banks are ownership
arrangements that act as a broker for acquiring patent rights to sounder
technologies and make them available to countries in need of technical
assistance, in particular the developing countries, on favourable terms.
-27-
138. The Commission emphasizes that the matrix approach deserves further
detailed study, including efforts at making the analysis more pragmatic and
comprehensive, quantifying the potential resources generated by the use of
different economic instruments and by policy reform measures. Studies should
exploit the full potential of the matrix as an analytical tool to assist policy
makers, including in examining the appropriate role of public and private
actors, and ways and means of promoting interaction and cooperation between
them. The Commission encourages Governments, United Nations organizations,
international financial institutions, academic and research communities and
other actors, including the private sector, to support and participate in these
efforts.
139. The Commission recognizes that in pursuing studies on economic instruments,
innovative mechanisms and the matrix approach, full consideration should be
given to the concerns of developing countries stated above, including the
mobilization of resource flows, and to promoting national capacities and
capabilities, taking into account the social, economic and distributional
impacts of policy options and keeping in mind the principle of common but
differentiated responsibilities.
140. The Commission expresses its appreciation of the inter-sessional work that
has been undertaken to prepare for its deliberations on financial resources and
mechanisms. It takes note in particular of the role of the Ad Hoc
Inter-sessional Working Group on Finance and its report (E/CN.17/1995/11).
141. The Commission invites international financial institutions and development
agencies and, as far as practicable, private enterprise, research organizations
and non-governmental organizations to participate in its work, including its
inter-sessional work. Furthermore, the Commission will seek out valuable
national experiences as case-studies, encourage informal technical group
meetings and promote pilot projects in order to enhance the effectiveness of its
work.


United Nations