3 March 1997

Proposed Outcome of the Special Session.
(Paper prepared by the Co-Chairmen)

Following are the "building blocks" for the possible outcome of the Special Session. It can be decided later whether at the end they should become one consolidated document or presented as several separate documents (e.g. annexes)

I. Statement of commitment (This could be either a Preamble to a "consolidated text" or a self-standing concise declaration to which other part(s) could be annexed or cross-referred to). Main components here could be:

1. The 1992 United Nations Conference on Environment and Development was a landmark event. The Rio Earth Summit launched a new global partnership - partnership among nations, among various actors within nations, and among international institutions aimed at achieving sustainable development worldwide.

2. The final documents of UNCED - the Rio Declaration on Environment and Development, Agenda 21 and the "Forest Principles" - continue to provide the foundation and long-term policy framework for guiding national and international action and cooperation in sustainable development.

3. Sustainable development calls for an integrated and balanced approach to the achievement of the goals of economic growth, social equity and the protection of the environment, which should take a central place on the political agenda at the international and national levels to ensure maximum benefits for the present and broader opportunities for future generations.

4. A number of recent United Nations conferences have advanced international commitment to the social and economic aspects of sustainable development, such as the eradication of poverty, social integration, population and gender issues, education, trade, growth and development, human settlements and food security, among others, thus contributing to the achievement of the long-term goals and objectives of sustainability.

5. A number of encouraging policy and institutional developments have taken place since UNCED at the global, regional, national and local levels, and the involvement of major groups has increased. In spite of these changes, overall trends and conditions remain the subject of great concern. Much more needs to be done, including in terms of international cooperation, to translate the promise of Rio into reality and redirect the course of world development onto a more sustainable path.

6. Today, five years after UNCED, there is an urgent need to focus on the implementation of what has been already agreed, foster consensus and action in various processes which are currently under way, and explore new avenues and approaches. involving all major groups in society.

II. Assessment of progress reached after Rio.

7. The five years since Rio have been characterized by accelerated "globalization" of interaction of countries in world trade, foreign direct investment and capital markets. Some developing countries have proved able to take advantage of these trends, have attracted large inflows of external private capital and experienced significant export-led growth and acceleration of growth in per capita GDP. In other countries, however, the necessary preconditions for such economic performance were not met and they have generally experienced stagnating or falling per capita GDP through 1995. These countries continue to be heavily dependent on a declining volume of official development assistance for the capacity-building and infrastructure development required for more effective participation in a globalizing world economy.

8. While economic growth has allowed some countries to reduce the proportion of people in poverty, too many countries have seen economic conditions worsen, and the total number of people in the world living in poverty has increased. Income inequality has increased both among and within countries and the gap between the least developed countries and other countries has grown rapidly in recent years. More positively, population growth rates have been declining globally, largely as a result of expanded basic education and health care. This trend is expected to lead to a stable world population in the middle of the next century. There has also been progress in social services, with expanding access to education, declining infant mortality, and increasing life expectancy in most countries. However, many people, particularly in the least developed countries, still do not have access to basic social services or to clean water and sanitation. Reducing current inequities in the distribution of wealth and access to resources, both within and among countries, would contribute to more sustainable patterns of world development.

9. Five years after UNCED, the global environment has continued to deteriorate and significant environmental problems remain deeply embedded in the socio-economic fabric of nations in all regions. Progress has been made in terms of institutional development, international consensus building, public participation and private sector actions and, as a result, some countries have succeeded in curbing pollution and slowing the rate of resource degradation. Overall, however, trends are worsening. Many polluting emissions, notably toxics, greenhouse gases and waste volumes, continue to rise in the industrialized countries, and their wasteful production and consumption patterns remain fundamentally unchanged. Many countries undergoing rapid economic growth and urbanization are experiencing increasing levels of air and water pollution, with rising impacts on human health. Acid rain and transboundary air pollution, once considered a problem only in the industrialized world, are increasingly apparent in many developing regions. In many poorer regions of the world, persistent poverty contributes to accelerating degradation of productive natural resources. Inadequate and unsafe water supplies are affecting an increasing number of people worldwide, aggravating problems of ill health and food insecurity among the poor. Natural areas and fragile ecosystems are still deteriorating in all regions of the world with attendant reductions in species diversity. At the global level, renewable resources, notably fresh water, forests, topsoil and marine fish stocks, continue to be used al rates beyond their natural rates of regeneration, a situation which is clearly unsustainable.

10. Since UNCED, extensive efforts have been made by Governments to integrate environment and development concerns into decision-making by elaborating new policies and strategies for sustainable development or by adapting existing policies and plans. As many as 150 countries have established national level commissions or coordinating mechanisms designed to develop an integrated approach to sustainable development.

11. Major groups have demonstrated what can be achieved through committed action, sharing of resources and building consensus. These have been grass roots expressions of concern and involvement. The efforts of Local Authorities are making Agenda 21 a reality at the local level through the implementation of Local Agenda 21 programmes. Hundreds of small and large businesses have made "green business" a new operating mode. Workers and trade unions have established partnerships with employers and communities to encourage sustainable development in the workplace. Indigenous peoples have played an increasing role in addressing issues affecting their interests. Young people and women around the world have played a prominent role in galvanizing communities to recognize their responsibilities to future generations.

12. Among the achievements after UNCED were the entry in force of the United Nation Framework Convention on Climate Change, the Convention on Biological Diversity, and the Convention to Combat Desertification; reaching Agreement on Straddling and Migratory Fish Stocks; adoption of the Global Programme of Action on Sustainable Development of Small Island Developing States and elaboration of the Global Programme of Action for the Protection of the Marine Environment from Land Based Activities. Implementation of these important commitments at the global level, however, still remains to be carried through.

13. The Commission on Sustainable Development, which was established to review progress achieved in the implementation of Agenda 21, forward global dialogue and foster partnerships for sustainable development, has catalyzed new action and commitments among a wide variety of partners within and outside the UN system.

14. However, much remains to be done to activate the means of implementation set out in Agenda 21, in particular, in the areas of finance and technology transfer.

15. Most developed countries have still not reached the UN target, reaffirmed at UNCED, of committing 0.7 percent of their GNP to ODA. On average, ODA as a percentage of GNP declined in the post-Rio period, from 0.34 per cent in 1992 to 0.27 per cent in 1995. The resources that were made available to the GEF in the post-UNCED period were substantial but fell short of earlier expectations. Although the debt situation of middle-income countries has, on the whole, improved significantly, with many of those countries having re-entered international capital markets, many heavily-indebted poor countries (HIPCs) continue to face onerous external debt burdens, despite a decade of international efforts to address the debt problem.

16. Similarly, the level of technology transfer and technology-related investment from public and private sources in developed countries directed to developing countries has not been realized as foreseen in Agenda 21. Increased private flows have led to investments in industry and technology in some developing countries and economies in transition. However many developing countries have been left behind, slowing the process of technological change in these countries and limiting their ability to meet their commitments under Agenda 21 and other international agreements. The commitment made by developed countries to foster the transfer of technology has not been realized as agreed in Agenda 21.

III. Strategies for Implementation

17. The achievement of sustainable development as envisaged in Agenda 21 requires the adoption of new policy approaches at national level and strong commitment to international cooperation for implementation. Sections III.A, III.B and III.C of the present document set out a package of recommendations intended to strengthen the policy approaches, practical actions and means of implementation necessary to promote sustainable development in the coming years.

A. Policy Approaches

Integration of Economic. Social and Environmental Objectives

18. Sustainable development cannot be achieved without greater integration at policy-making and operational level. In practice, this implies that economic sectors such as industry, agriculture, energy, transport and tourism must take responsibility for the impacts of their activities on human well-being and the physical environment. The need for integration is particularly urgent in the case of energy and transport because of the adverse effects on human health and ecosystems; in agriculture and water use, where inadequate land use planning, poor water management and inappropriate technology can result in the degradation of natural resources and human impoverishment; and in the management of marine resources. where competitive over-exploitation can damage the resource base, food supplies and the livelihood of fishing communities, as well as the environment. Sustainable development strategies are important mechanisms to enhance and link national capacity, bringing together the priorities in social, economic and environmental policies involving participation of all concerned parties.

a By the year 2005 national strategies for sustainable development should be adopted in all countries, with assistance provided through international cooperation where needed. Local Agenda 21 programmes should also be actively encouraged;

b a broad package of policy instruments, including regulation, economic instruments, information and voluntary partnerships between Governments and non-Governmental actors, will be necessary to ensure that integrated approaches are effective and cost efficient;

c consultative and participatory processes will also be required to develop acceptable trade-offs among economic, environmental and social objectives where these are found to conflict. In addition to the major groups identified in Agenda 21, other social actors and groups which have significant potential to advance the sustainable development agenda should be acknowledged and included in the decision-making process. Among such groups are the organizations of the elderly, the media, parliamentarians and the education sector. These groups should be involved in the implementation of various work programmes which have been adopted, or requested to lead processes that enhance the sustainable development dialogue as well as that of Agenda 21 awareness around the world.

Changing Consumption and Production Patterns

19. Polluting and inefficient patterns of production and consumption, particularly in the industrialized countries, are identified in Agenda 21 as the leading cause of environmental degradation worldwide. Similar patterns are emerging in the wealthier areas of developing countries. A key strategy for achieving sustainable development involves the reshaping of current consumption and production patterns towards cleaner and more efficient technologies and behaviours. Actions in this area should focus on:

a progressive measures to internalize environmental costs and benefits in the price of goods and services, particularly with a view to encouraging the use of environmentally preferable products and commodities;

b evaluation of proposed policy measures in developed countries for environmental effectiveness, efficiency and the implications for social equity, particularly with regard to possible impacts on export opportunities and market access for developing countries;

c assessment of the linkages between urbanization, the environment and development effects of consumption and production patterns in cities;

d adoption of international and national targets for energy and material efficiency;

e assessment of the role that media and advertising play in shaping consumption patterns.

Making Trade, Environment and Sustainable Development Mutually Supporting

20. In order to accelerate economic growth and poverty eradication, there is a need for macro-economic conditions in both developed and developing countries which favour the development of instruments and structures enabling all countries to benefit from globalization. Cooperation and other support for capacity-building in trade, environment and development should be strengthened through renewed system-wide efforts in the United Nations, WTO and Bretton Woods institutions. Trade liberalization should be accompanied by environmental and resource management policies in order to realize its full potential contribution to improved environmental protection and promotion of sustainable development through more efficient allocation and use of resources. The following actions are required:

a timely and full implementation of the results of the Uruguay Round negotiations; full use of the Comprehensive and Integrated WTO Plan of Actions for the Least Developed Countries;

b there is continued need to promote an open, non-discriminatory and equitable multilateral trading system, as well as the rapid accession of developing countries, while mitigating possible adverse effects that might arise from the implementation of certain aspects of the Uruguay Round Agreements;

c further work is needed to ensure that the implementation of environmental measures does not result in disguised restrictions on trade, particularly those that have adverse effects on existing market access opportunities of developing countries;

d National governments and private bodies should explore concepts such as mutual recognition and equivalency in the context of eco-labelling, taking into account differing environmental and developmental conditions across countries;

e positive measures, including enhanced market access for products of export interest to developing countries, should be promoted. The General System of Preferences (GSP) could be used to provide incentives for sustainable production;

f further action should also focus on issues such as: (i) emerging trade and environment issues in the design and implementation of positive measures in MEAs; (ii) positive measures, including incentives and partnerships based on the fair and equitable sharing of the benefits arising out of the utilization of genetic resources in promoting the conservation of biological diversity; (iii) special conditions and needs of small and medium-sized enterprises (SMEs) in the trade and environment interface; and (iv) trade and environment issues at the regional level, including in the context of regional economic and trade agreements.

B. Areas Requiring Urgent Action

21. This section identifies a number of areas which require particularly urgent action. Some issues are felt to be of major and widespread concern, since failure to reverse current trends, notably in resource degradation, will have potentially disastrous effects on social and economic development, particularly in developing countries. In addition, these issues are at a policy stage where significant action is possible; accordingly, these issues are treated at greater length.

Poverty

22. The eradication of poverty is one of the fundamental goals of the entire United Nations system. In the long term, poverty eradication depends on the full integration of the poor into dynamic market systems. Policies to combat poverty, in particular, provision of basic social services enable such integration, and promote broader socio-economic development, since enhancing the capacity of the poor to produce increases both the well-being of individuals and national wealth. Full implementation of the Programme of Action of the World Summit for Social Development is essential. Priority actions include:

a improving access to sustainable employment, entrepreneurial opportunities and productive resources, including land, water, credit, technical and administrative training, and appropriate technology, particularly for the rural poor and the urban informal sector;

c providing universal access to basic social services, including basic education, health care, nutrition, clean water and sanitation;

d progressive development, in accordance with the financial and administrative capacities of each society, of social protection systems to support those who cannot support themselves, either temporarily or permanently.

Freshwater

23. Based on an alarming assessment in the Secretary-General's report on the freshwater resources of the world, there is growing concern over the increasing stress on water supplies caused by unsustainable use patterns, affecting both water quality and quantity. This calls for the highest priority to be given to the serious freshwater problems facing many regions, especially in the developing world. While the emerging international consensus on basic water management principles must be furthered, there is an urgent need for:

a national governments to assign high priority to the formulation and implementation of policies and programmes for integrated land and water management, including issues related land degradation and desertification, at all levels;

b governments to provide an enabling environment which encourages investments from public and private sources to improve water supply and sanitation services. especially in fast-growing urban areas;

c countries to recognize water as an economic good, and implement pricing policies geared toward cost recovery and an efficient allocation of water, taking into account the satisfaction of basic human needs, global food security, and poverty alleviation:

d Governments and international institutions to strengthen their information management system capability needed for the integrated management of water resources, including scientific. social and environmental data;

e strengthening international cooperation through initiatives, such as the Global Water Partnership and multilateral arrangements among riparian countries;

f an intergovernmental process, under the aegis of the CSD, aimed at reaching a global consensus on and formulating recommendations for action at the international, regional and national levels.

Oceans

24. Progress has been achieved with regard to various aspects concerning the protection of oceans. To address the need for an improved system of oceans governance, there must be more effective coordination of policies and actions at the national, regional and international levels. In this context, there is an urgent need for:

a an integrated, comprehensive approach to the implementation and monitoring of existing legal instruments and mechanisms, based on coordination of policies and actions at national, regional and international levels;

b urgent implementation, at the international and country level, of the Global Programme of Action for the Protection of the Marine Environment from Land-based Activities and other ocean-related legal instruments and programmes of action, such as the United Nations Convention on the Law of the Sea, the Agreement of Straddling and Highly Migratory Fish Stocks, the International Coral Reef Initiative and the Global Programme of Action for Sustainable Development of Small Island Developing States;

c governments to consider the establishment of measurable objectives, including targets the elimination of subsidies, to eliminate or reduce excess fishing fleet capacity at global, regional and national level;

d in the context of the 1998 International Year of the Ocean, proclaimed by the General Assembly in resolution 49/131, Governments should take action to improve the quality and quantity of scientific data related to oceans and to enhance public awareness of oceans as a finite economic asset that must be preserved and protected.

Forests (To be left pending until CSD considers the report of the IPF)

Energy and Transport

25. Energy plays a key role in achieving economic, social and environmental objectives of sustainable development and access to reliable and cost effective supplies of energy is essential. However, the current patterns of production, distribution and use of energy are not consistent with the pursuit of sustainable development. The transport sector, which is the largest end user of energy in developed countries and the fastest growing one in most developing countries, has particularly adverse effects on the global atmosphere, as well as local air quality and human health. There is an urgent need for:

a all countries to develop comprehensive energy policies which include economic, social and environmental aspects of production. distribution and use;

b provision of electricity to unserved populations, based on modern renewable energy sources where reasonable, with the incremental cost of such schemes met, where necessary from global sources such as the GEF;

c countries to systematically increase use of modern renewable energy sources and cleaner fossil fuel technologies, to improve efficiency in energy production, distribution and use;

d Governments and the private sector to move towards energy pricing that reflects full economic and environmental costs, as well as social benefits, including through the elimination of subsidies to energy production and consumption, especially for fossil and nuclear energy, within ten years;

e concerted efforts to increase investment and R&D in renewable energy technologies at the international and national levels by the energy sector and institutions and governments;

f development of a common strategy as a reference framework for better coordination of energy related activities in the UN system;

g promotion of integrated transport policies which consider alternative approaches to meeting commercial and private mobility needs and improve performance in the transport sector, through a focus on tightened emission standards, improved traffic management and infrastructural development at the national, regional and global levels.

Atmosphere

26. So far very little progress has been made in the reduction of GHG emissions. There is a need to reinforce the UNFCCC by additional agreements to limit GHG emissions through intensified negotiations under the Berlin Mandate, just as in the case of the Vienna Convention for the Protection of the Ozone Layer which was followed by the Montreal Protocol on Ozone Depleting Substances. Local air pollution has serious impacts on healths particularly in rapidly growing urban areas. Indoor air pollution from combustion of traditional renewable fuels is a major health hazard in poorer areas of developing countries. There is urgent need for progress at the COP III of UNFCCC to be held in Kyoto, Japan, later this year, in securing firm commitments on quantified objectives as well as on policies and measures to reduce GHG emissions beyond 2000. Additional resources are required to ensure the timely implementation of ODS phase-out projects in developing countries, as well as the implementation of effective measures against illegal trade in ozone depleting substances.

Population

27. The current slowdown in population growth rates must be continued through poverty reduction and further expansion of basic education and health care. Priority actions for reducing pressures from population growth and meeting the needs of growing urban and rural populations include the full implementation of the Programmes of Action of the 1994 International Conference on Population and Development and the 1996 Habitat II. Integrated sustainable development strategies must be developed for environmentally-fragile areas with unsustainable population pressures, including sustainable land use management, appropriate agricultural technologies, rural non-farm production, and assisting environmental refugees.

Education

28. Education, which augments human capital, is a decisive factor in enabling people to become productive members of society. A fundamental pre-requisite of sustainable development is an adequately financed and effective educational system at all levels, but particularly at the primary and secondary levels. Priority should be given to women's education, given that two-thirds of the world's illiterate adults are women. Raising the educational level of women plays a major role in reducing family size, improving child health and family nutrition and increasing household earning potential. Increased investment in people, through spending on education, as well as other social services, is essential.

Health

29. The goals of sustainable development cannot be achieved in societies where a high proportion of the population is afflicted with debilitating illness. An overriding goal for the future is to achieve the goals of the Health for All programme and to enable the world's poor, in particular, to achieve a level of health which enables them to improve their economic productivity and social potential. Top priority should be attached to efforts, by countries and international organizations, to eradicate the major infectious diseases, particularly malaria which is on the increase; and to the improvement and expansion of basic sanitation services and the provision of safe drinking water. Health should be fully integrated in national and sub-national sustainable development plans, and incorporated into project and programme development as a component of Environmental Impact Assessments.

Toxic Chemicals and Wastes

30. Substantial progress has been made with implementation of the Basel and Bamako Conventions and the establishment of the Intergovernmental Forum on Chemical Safety (IFCS) and the Inter-organizational Programme for the Sound Management of Chemicals (IOMC). The next concrete steps for international action must be the expeditious conclusion of conventions on Prior Informed Consent (PIC) and Persistent Organic Pollutants (POPs). Storage, transportation, transboundary movements and disposal of radio-active wastes must be guided by the precautionary principle and by principle 19 of the Rio Declaration (prior informed consent). Storage of radio-active wastes in the Arctic and Antarctica regions must be prevented.

Land and Sustainable Agriculture

31. Land loss and degradation threatens the livelihood of millions of people and future food security. The international community has recognized the need for an integrated approach to land-use management that involves all stakeholders, at local as well as national levels, and that includes women, small-scale food producers and community-level NGOs. The eradication of poverty remains essential to improve food security and provide adequate nutrition for more than 800 million people, located mainly in developing countries, who are hungry. Comprehensive rural policies are required to combat poverty, create employment and reduce rural emigration. To meet these objectives, Governments should attach high priority to implementing the commitments of the Rome Declaration on World Food Security and the Plan of Action, adopted at the World Food Summit in November 1996, especially its call for a minimum target of halving the number of undernourished people in the world by 2015. The international community should support a global financial mechanism with adequate financial resources capable of advancing the implementation of the Convention on Desertification and its annexes.

Sustainable Human Settlements

32. Approximately half the world's population already lives in urban settlements and, by early in the next century, the majority - over five billion people - will be urban residents. Urbanization is occurring most rapidly in developing countries, often leading to increasing social and environmental stresses. Urgent action is needed to implement fully the commitments made at the United Nations Conference on Human Settlements (Habitat II.) and In Agenda 21. Technology transfer, capacity building and private-public partnerships to Improve the provision and management of urban infrastructure and social services should be accelerated.

Sustainable Tourism

33. The tourism sector is now the world's largest industry and the fastest growing economic sector. Tourism is a major employer and contributer to national and local economies, especially for SIDS. Tourism, like other sectors, uses resources and generates wastes, and creates environmental, cultural and social costs and benefits in the process. For sustainable patterns of consumption and production in the tourism sector it is essential to strengthen policy development, nationally and internationally, in the areas of physical planning, impact assessments the use of economic and regulatory instruments and in the area of information, education and marketing. The CSD should consider the adoption of an International Programme of Work, to be elaborated in cooperation with UNCTAD, the World Tourism Organization and UNEP.

Biodiversity

34. The importance of integrating various biodiversity values for conservation and sustainable use poses a challenge to biodiversity economics for estimating the benefits to be derived from biological resources and of demonstrating the relationship between economics international trade and biodiversity. It is of critical importance that Governments and the international community fully implement the commitments of the Convention on Biodiversity. More attention must be given to equitable sharing of the benefits from commercial exploitation of biodiversity, and to the transfer of biotechnology. Governments should also take positive action to recognize and reward traditional knowledge and practices of local communities and indigenous people. A biosafety protocol under the Biodiversity Convention should be rapidly concluded. In the meantime, countries should adhere to and implement the UNEP International Guidelines for Safety in Biotechnology;

SIDS

35. The international community reaffirms its commitment to the implementation of the Barbados Programme of Action for Small Island Developing States. The Commission on Sustainable Development carried out a mid-term review of selected programme areas of the Programme at its fourth session in 1996. A full review of the Programme is scheduled for 1999. External assistance for the building of requisite infrastructure, human and institutional capacity and for facilitating access to information on sustainable development practices and transfer of environmentally sound technologies is crucial for SIDS to effectively attain the goals of the Barbados Programme of Action.

C. Means of Implementation

Financial Resources and Mechanisms

36. All financial commitments of Agenda 21, particularly those contained in its Chapter 33, including those related to the provision of new and additional financial resources that are both adequate and predictable, need to be implemented.

37. Developed countries should reiterate their commitments with respect to ODA and reverse the downward trend in ODA, both in absolute and relative terms, in order to support the efforts of developing countries to ensure effective implementation of Agenda 21. In this context it is essential to consider strategies that could restore donor support for aid programmes, and revitalize the commitments that donors made at UNCED.

38. Private capital, both foreign and national, is a major engine of economic growth. However, private capital is not necessarily attracted to investment areas which arc essential in fostering socio-economic development. In this context, the role of ODA becomes critical in leveraging investments in, for example, rural infrastructure projects and encouraging private capital flows to meet financing needs in socially and environmentally beneficial areas which support sustainable development. ODA should continue be seen as the critical means of promoting sustainable development in the least developed countries.

39. The adequate replenishment of GEF resources deserves high priority, and the GEF should use its flexibility to expand its scope and coverage beyond its existing priorities to other relevant programme areas of Agenda 21 with global benefits, as agreed.

40. Further studies should be undertaken on foreign private flows to developing countries, including the design of an appropriate policy environment for attracting FDI and how host countries can maximize the positive impacts of FDI on sustainable development through strengthening social policies and environmental policies and regulations.

41. To resolve the remaining debt problems of highly indebted countries, creditor countries and international financial institutions should continue their efforts towards finding effective, comprehensive, durable and development-oriented solutions, including measures such as debt reduction, debt swaps, debt cancellation and increased grants and concessional flows.

42. More concrete policies for promoting domestic resource mobilization include macroeconomic and structural reforms, public expenditure reforms, the promotion of environmental taxes and charges, a review of existing subsidy policies, and financial sector development to promote personal savings and access to credit. The expanded use of environmental taxes and user charges is particularly attractive because they not only generate financial resources for sustainable development but also shift consumer and producer behaviour to more sustainable patterns.

43. There is an urgent need for subsidy reforms, especially in the energy and agriculture sectors. Governments should minimize the creation of new subsidies, make existing subsidies more transparent and be aware of the actual impacts of existing subsidies. Subsidy reductions should form part of an overall package of policy reforms, taking full account of their potentially regressive impacts; ways and means to integrate national subsidy reductions in the process of international cooperation and coordination should be actively explored.

44. In order to reduce the barriers to an expanded use of economic instruments, Governments and international organizations should collect and share information on the use of economic instruments, and introduce pilot schemes. When introducing economic instruments that raise the cost of economic activities for households and SMEs, governments should consider gradual phase-ins, public education programmes and targeted technical assistance as strategies to reduce distributional impacts.

45. Private sector investment in sustainable development requires an enabling policy and regulatory environment, in both developed and developing countries. Investment in developing countries could be increased through adequate incentives and the promoting of innovative schemes such as co-financing and "green" investment funds. Better understanding of the impacts of volatile international financial flows on sustainable development should be promoted.

46. A number of innovative financial mechanisms are currently under discussion in international and national fora. In view of widespread interest, appropriate organizations, including the World Bank and the IMF, are invited to conduct forward-looking studies regarding concerted action on these mechanisms.

Transfer of environmentally sound technologies

47. There is an urgent need for developing countries to obtain access to available ESTs on concessional and preferential terms, if they are to meet their obligations under Agenda 21 and other international conventions. The dissemination of environmentally sound technology and corresponding knowledge, as envisaged in Agenda 21, is critical to eco-efficiency, cleaner production and long-term sustainable development efforts. All commitments to technology transfer in Agenda 21, particularly those contained in Chapter 34, need to be fully implemented.

48. Equal importance should be given to both the transfer of capital goods and services and the development of skills to use and maintain new technologies. While technology transfer is usually a business-to-business transaction, governments have a particular responsibility for promoting human and institutional capacity-building for technology management and establishing the policy framework that is most appropriate for the effective transfer of technology. Governments have also an important task in bringing together companies from developed and developing countries so they can create sustainable and mutually beneficial business linkages and partnerships.

49. Many of the most advanced environmentally sound technologies are developed and held by the private sector. Market-based mechanisms and the protection of intellectual property rights are conducive to the transfer of privately owned ESTs and the development of new technologies. New ways of financial intermediation for the financing of ESTs, such as "green credit lines" should be examined. The links between foreign direct investment, ODA and technology transfer should be explored in depth.

50. A proportion of technology is owned by public institutions, or results from publicly funded research and development activities. The government's control over the technological knowledge produced in publicly funded research and development institutions opens up a potential for the generation of publicly owned technologies that could be made accessible to developing countries, and could be an important means for governments to catalyze private sector technology transfer. Proposals for further study of these technologies to meet developing country needs are to be welcomed.

51. Public-private partnerships should be increasingly used to link the advantages of the private sector - access to finance and technology, managerial efficiency, entrepreneurial experiences and engineering expertise - with the capacity of governments to create a policy environment that is conducive to technology-related private sector investments and long-term sustainable development objectives.

52. It is essential to develop national legal and policy framework which will stimulate the building of joint ventures and public-private partnerships, at national and international levels with a view to promoting technological innovation and facilitate financing, transfer and diffusion of ESTs, in particular in developing countries and countries with economies in transition Incentives to encourage private-private partnerships, especially those involving SMEs should be accorded higher priority

53. There is a need to enhance exploitation of the potential of global electronic information and telecommunication networks that would enable countries to choose among the available technological options that are most appropriate to their needs.

Capacity Building

54. Renewed commitment and support from the international community is essential to support national efforts for capacity building in developing countries. The Capacity 21 Programme of UNDP should be further strengthened. It should give priority attention to building capacity for the elaboration of sustainable development strategies based on participatory approaches.

55. Focused attention on the role of women in capacity building is needed to ensure that their skills and experience are fully used in decision-making at all levels. International financial institutions should enhance their funding of capacity building for sustainable development in developing countries and countries with economies in transition. South-South cooperation in capacity building should be further supported through "triangular" cooperative arrangements.

Science

56. Greater efforts to build and strengthen scientific capacity in developing countries is an objective of the highest priority and greatest urgency.

57. International consensus building is facilitated by the availability of authoritative scientific evidence. There is a need for further scientific cooperation, especially across academic disciplines, in order to verify and strengthen scientific evidence for environmental change.

58. Public investment in science, education and training, and in research and development, should be increased significantly at the national level. Multilateral and bilateral donor agencies and governments, as well as specific funding mechanisms such as the GEF, should enhance significantly their support to developing countries in this regard.

Information and tools to measure progress

59. The further development of cost-effective tools to collect and disseminate information for decision-makers at all levels, through strengthened data collection, compilation and analysis, is urgently needed.

60. The CSD work programme on indicators for sustainable development should result in an adequate set of indicators, including a limited number of aggregated indicators, to be used at the national level by the year 2000.

61. National reports provided on the implementation of Agenda 21 have proven to be a valuable means of sharing information at international and regional levels, and even more importantly, of providing a focus for coordination of issues related to sustainable development within a country. This national reporting should continue, and should reflect all aspects of Agenda 21, including domestic action and international commitments. The reporting system could be complemented by peer reviews organized at the regional level.

To be added in the course of CSD-V: action regarding the streamlining of national reporting.

IV. International Institutional Arrangements (this part may be presented as an annex)

62. Achievement of sustainable development requires continued support from international institutions. The institutional framework outlined in Chapter 38 of Agenda 21 and determined by the General Assembly in its resolution 47/191, including specific functions and roles of various organs, programmes and organizations within and outside the United Nations system, will continue to be fully relevant in the period after the Special Session. However, within that framework, achievement of the following goals and objectives would be particularly important.

Greater coherence in various intergovernmental organizations and processes.

63. Given the increased number of decision-making bodies concerned with various aspects of sustainable development, including those related to the international conventions, there is an ever greater need for better policy coordination at the intergovernmental level through consistent and coherent positions of governments in these various fora, as well as enhanced collaboration among their secretariats.

64. Strengthening the ACC's Inter-Agency Committee on Sustainable Development and its system of Task Managers is needed, with a view to further enhancing inter-sectoral cooperation and policy coordination at the national, regional and international level for the implementation of Agenda 21.

65. Appropriate and effective arrangements should be established in order to better support regional and sub-regional organizations, bearing in mind the role they play in the achievement of sustainable development objectives agreed at the international level.

Role of relevant organizations and institutions of the United Nations system

66. All organizations and programmes of the United Nations system should, in their further individual and joint efforts to implement Agenda 21 and in cooperation with national governments, give more emphasis to action at the country level, ensure greater support to community-driven initiatives and promote more active involvement of major groups.

67. The role of the United Nations Environment Programme (UNEP) and of its Governing Council, as the principal United Nations body in the field of environment, should be further enhanced in conformity with the Nairobi Declaration on the Role and Mandate of UNEP, with a view to enabling the Programme to serve as the leading environmental authority that sets the global environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system and acts as an authoritative advocate for the global environment. A revitalized UNEP should be supported by adequate funding. UNEP should continue providing effective support to the CSD through scientific, technical and policy information and advise on the environment.

68. The United Nations Development Programme (UNDP) should strengthen its contribution to sustainable development and the implementation of Agenda 21 given its role at the national and local levels, particularly in the area of promoting capacity building in cooperation with other organizations.

69. The United Nations Conference on Trade and Development (UNCTAD) should continue to play a key role in the implementation of Agenda 21 through integrated examination of linkages among trade, investment, technology, finance and sustainable development.

70. The WTO Committee on Trade and Environment, UNCTAD and UNEP should advance their coordinated work on trade and environment, building upon the accomplishments so far and involving other appropriate international and regional organizations in their cooperation and coordination. UNCTAD and UNEP should play a major role in both analysis and action-oriented efforts to promote the integration of trade, environment and development. The CSD has an important role to play in the process of widening the trade and environment debate to include an integrated consideration of all factors relevant for achieving sustainable development.

71. International financial institutions should strengthen their commitment to sustainable development. The World Bank has a significant role to play, bearing in mind its expertise and the overall volume of resources it commands. Governments should also agree to IDA12 replenishment at least at the same level as IDA10. Negotiations for the replenishment of the GEF will have special importance for its future work, as well as a direct impact on the availability of new and additional grant and concessional funding for sustainable development with global benefits at the global. regional and national level.

Future role and Programme of Work of the CSD

72. The Commission on Sustainable Development will continue to provide a central forum for reviewing further progress in the implementation of Agenda 21 and of other Rio commitments, for policy debate and consensus-building on sustainable development, as well as for catalyzing action and commitment to sustainable development at all levels. The CSD should perform its functions in coordination with other subsidiary bodies of the Economic and Social Council that contribute to the achievement of specific economic and social goals of sustainable development.

73. The CSD, while carrying out its functions outlined in the Assembly resolution 47/191. should focus its deliberations on those issues which are of major significance to achieving the goals of sustainable development, involve promotion of policies which integrate economic, social and environmental dimensions of sustainability and provide for integrated consideration of linkages both between sectors and between sectoral and cross-sectoral aspects of Agenda.

74. In light of the above, it is recommended that the Economic and Social Council decides on the Multi-Year Programme of Work of the CSD for the period 1998-2002 as contained in Annex (to be added).

CSD's methods of work

75. Based on the experience gained in the period 1993-1997, the CSD, under the guidance of the Economic and Social Council, should:

a strive to attract greater involvement in its work of ministers and high-level national policy-makers responsible for specific economic sectors, who, in particular, are encouraged to participate in the High-Level Segments in the CSD jointly with the ministers and policy-makers responsible for environment and development. The high level segments of the CSD should become more interactive and focus on the priority issues being considered at a particular session;

b continue to provide a forum for the exchanges of national experiences in sustainable development. In this context, the Commission should consider more effective modalities for reviewing progress in the implementation of commitments made in Agenda 21, with an appropriate emphasis on those related to the means of its implementation;

c develop a better regional focus. CSD should monitor the growing number of regional initiatives and regional collaborations for sustainable development, and link its work more closely to such developments;

d establish closer inter-action with international financial institutions, GEF and the World Trade Organization, which in turn, are invited to take fully into account the results of policy deliberations in the CSD in their own work programmes and activities;

e continue to explore more effective and systematic ways to involve the representatives of major groups in its work, with a view to enhancing their contribution and accountability in the implementation of Agenda 21, thus demonstrating the value of their participation more widely;

f organize the implementation of its next Multi-Year Programme of Work in the most effective and productive way. Preparation for consideration of issues by the CSD can take the form of Ad hoc Inter-sessional Working Groups or arrangements similar to the Intergovernmental Panel on Forests. Use could also be made of the expertise of the Committee on New and Renewable Sources of Energy and on Energy for Development and the Committee on Natural Resources. Furthermore, government hosted inter-sessional expert meetings have proven to be effective;

g promote more direct inter-action between the CSD and the High-level Advisory Board on Sustainable Development with a view to enhancing the contribution of the Board to the deliberations in the Commission.

76. The Economic and Social Council, bearing in mind the established practice of active inter-sessional work held under the auspices of the CSD, is invited to examine the possibility of changing the pattern of election of the Commission's Bureau.