GCO Pillar II: 1. UNEP Chemicals and Finance Initiative activities 2. Case studies

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GCO Pillar II 1. UNEP Chemicals and Finance
Initiative activities 2. Case studies

• Louise Gallagher
• Consultant (Economics)
• Chemicals Branch,
• DTIE, UNEP

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

• Draft Outline Pillar II
• Overview of Economic Implications of Trends
• Financial Implications
• External Cost Implications
• Case Studies

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III. Financial Implications UNEP Finance
InitiativeChemicals Collaboration to strengthen
messages and services for both our clients

• 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

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

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

• Jan 2011
• First contact
• Focal points established

Dec 2010 - UNEP FI requests informal meeting

• Feb 2011
• Information exchange
• Guest speaker

• April 2011
• Membership mailing

• June 2011
• New focal points
• Working group proposed

• May 2011
• GCO finance work begins

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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

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

• Framing of cost implications
• Categorization of costs
• Sizing the problem
• Literature, figures, case studies
• Authoritive gaps analysis
• Reflecting the COI strategy

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

• 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

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

1. Mercury use in artisanal and small-scale gold
   mining
2. E-Waste
3. Industrial chemicals (accidents)
4. Pesticides (IPM/IVM)

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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 HS, 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