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GCO Pillar II:

1. UNEP Chemicals and Finance Initiative activities

2. Case studies

Louise GallagherConsultant (Economics)

Chemicals Branch, DTIE, UNEP

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Draft Outline Pillar II:

II.Overview of Economic Implications of Trends

III. Financial Implications

IV. External Cost Implications

V.Case Studies

Overview Supporting the fulfilment of work for Pillar II – Economic Implications of Chemicals Production, Use and Disposal (RR)

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• Who are UNEP FI?

• Drivers for collaboration: –Finance sector is a key leverage point –Chemicals financing discussions –Need for deeper understanding of ‘private sector’–Delivering to UNEP FI membership

• Objectives –‘Mutual learning’ –Identify high impact areas of collaboration

III. Financial Implications UNEP Finance Initiative–Chemicals Collaboration to strengthen messages and services for both our ‘clients’

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III. Financial Implications Timeline and outcomes to date for the Chemicals-Finance collaboration

Dec 2010- UNEP FI requests informal meeting

Jan 2011-First contact-Focal points established

Feb 2011-Information exchange-Guest speaker

Mar 2011-Andrew Dlugolecki-Financial piece outline-FI Steering Commitee

April 2011-Membership

mailing

May 2011-GCO finance work begins

June 2011-New focal points-Working group proposed

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III. Financial Implications

Elements of continued collaboration supporting the GCO

• Extending contact with insurance, banking and investment sectors

– Establish a ‘Working Group on Chemicals’ • Reach out to members of existing groups to populate • Meeting suggested for September (no concrete action on this yet)

• Review from the finance sector

• When the timing is right…– New! Principles for Sustainable Insurance– UNEP FI Global Roundtable, Oct 2011 – The Geneva Association

III. Financial Implications ESG (Environment Social Governance) Risks framework for ‘Chemicals’ is going to be an important output

• ESG Risks is the only ‘language’ on sustainable development in the finance sector context that has embedded itself

• Broader vision of potential ‘chemicals-risks’ impacts on the finance sector

– COI

– Value for UNEP FI and its members

– A guide to future work on chemicals and the finance sector

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• Framing of cost implications

• Categorization of costs

• ‘Sizing’ the problem

• Literature, figures, case studies

• Authoritive gaps analysis

• Reflecting the COI strategy

IV. External Cost Implications The ‘costs of inaction’ results will be central for completing this section

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• GCO: Demonstrating possibilities for ‘economic framing’ of chemicals-related trends and use of this information in decision-making – What choices would we hope to inform?

• Development paths• Investment in sound management of chemicals

– Aiming for ‘Net Benefits’ type of discussion…

• COI on gaps/case studies under Module B

• New (and needed) stand-alone contributions for the individual topics

V. Case Studies The main purpose of the case studies is to draw together the financial and external cost information in a concrete discussion

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1. Mercury use in artisanal and small-scale gold mining

2. E-Waste

3. Industrial chemicals (accidents)

4. Pesticides (IPM/IVM)

V. Case Studies Four topics are PROPOSED as case studies to complement the work of Pillar I , provide information for Pillars II and III

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Case Study 1Mercury use in artisanal and small-scale gold mining – reasons for including a case study on this topic in the GCO (1)

• Forthcoming Mercury Treaty

• Elimination, reduction (and management) of mercury in gold mining falls in the scope of SMC and has a global dimension

• Captures three issues of particular interest to the COI/GCO: – i) mining and chemicals, ii) metals and iii) drivers

of economic development with a chemicals dimension

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Case Study 1Mercury use in artisanal and small-scale gold mining – reasons for including a case study on this topic in the GCO (2)

• Captures some interesting aspects: i) non-chemicals production trends that impact on chemicals usage (intensity) ii) illegal use

• Significant exposure numbers and vulnerabilities – occupational, local and indirect

• Informs some key policy choices:– Initial choice of ‘development paths’– Minimizing costs (maximizing benefits) from

existing development choices

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Case Study 2 e-waste – reasons for including a case study on this topic in the GCO (1)

• E-waste ‘falls squarely’ in the scope of SMC/global chemicals trends

• Captures two issues of particular interest to the COI/GCO: – i) sustainable production/green chemistry and ii)

management of chemicals in products in end-of-life phases

• Significant exposure numbers and vulnerabilities – occupational, local and indirect

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Case Study 2 e-waste – reasons for including a case study on this topic in the GCO (2)

• Emerging discussion that would benefit from inclusion in COI/GCO

• Informs some key policy choices:– How strictly to regulate electrical and electronic

equipment production – Domestic requirements for e-waste

management – How strictly to regulate e-waste exports/

imports

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Case Study 3 Industrial chemicals (production-accidents)– reasons for including a case study on this topic in the GCO

• Increasing risk of industrial accidents with shift of production ‘falls squarely’ in the scope of SMC/global chemicals trends

• Cross-cutting – links trends, finance (insurance), economic implications and policy

• Exposure and vulnerabilities – occupational, local and indirect (depending on emissions)

• Informs some key policy choices:– ‘Development paths’– Regulating industrial H&S, pollution control ..

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Case Study 4 Pesticides (IVM/IPM) – reasons for including a case study on this topic in the GCO

• Pesticides (IVM/IPM) ‘falls squarely’ in the scope of SMC/Global chemicals trends

• Highlighted in Pillar I trends: Production, use and disposal (obsolete pesticides)

• Significant exposure numbers and vulnerabilities – occupational, local and indirect

• Informs some key policy choices:– ‘Development paths’– Regulating production, trade, use and disposal

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Resources Brainstorming the materials and partnerships that can help this work progress

Case Studies Resources

Case Study 1 (Hg in ASGM)

Global Mercury Partnership, UNEP Mining Partnership, Expertise in the Steering Committee (valuation), COI

Case Study 2 (e-waste)

Pillar I, Basel Convention Secretariat, Blacksmith, Waste Without Frontiers, COI, ICCA, BAN

Case Study 3 (Industrial accidents)

Pillar I, Pillar II Financial analysis, UNEP SCP (APELL/China), COI, ICCA

Case Study 4 (Pesticides/IPM)

Pillar I, Stockholm, FAO, IPEN, COI, UNDP/UNEP PI, CropLife

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Work Plan: Pillar II How this gets done over the next 6/7 months

Tasks Jun

Jul

Aug

Sept

Oct Nov Dec

Chem-FI Collaboration

III. Financial Implications

IV. External Costs (COI)

V. Case Studies

1. Hg in ASGM ?2. WEEE

3. Industrial accidents

4. Pesticides (IVM/IPM)

Putting it all together