Minister of the Environment Thorbjørn Berntsen

OECD - Environment Ministerial

Statement by Thorbjørn Berntsen during the Second Session "Towards the New Millenium: Delivering Results"

Paris, 19-20 February 1996

Mr. Chairman

As said by many speakers this morning there seems to be a gap between what people in our countries really demand and what our governments or societies can deliver when it comes to the environment. I also think that many people in rich countries want a better distribution between rich and poor countries.

When we have this market demand then the question is how to go ahead and bridge the gaps between this demand and our ability to deliver results.

We have four points, which we want to put forward.

Firstly:

• We have begun to take the issue of sustainable consumption and production seriously. Concepts have been clarified by the OECD and an international work programme has been supported by the CSD. The OECD must continue to take a leading role. More sustainable behaviour can be stimulated by instruments such as green taxes, green procurement policies, cleaner production instead of cleaning emissions, eco-management and audit schemes, and other preventive policies. The recommendations before us on greening of government and the OECD are useful steps. But we need to go further.

Secondly:

• From the environmental performance reviews carried out by the OECD it is clear that a major challenge for us in the late 90's is the imperative of integrating environmental objectives in other sectors. Why haven't we succeeded up to now? We have been struck by the success which industry in many cases has shown. Public awareness and anticipation of public demand create the kind of market conditions which industry takes seriously. When long-term environmental objectives are accepted by industry a kind of dynamic seems to take root and the commitment is then an accepted part of that industry's strategy. This kind of dynamic is missing in other sectors.
• I do not mean to say that industry has all the answers. It doesn't. And in many areas industry still has a long way to go. But why can't we achieve the same dynamic in other sectors such as energy and transport, and how can we get other sectors to accept the kind of internal review and monitoring systems which industry in many cases now has in place? That to me, is a challenges which should not be that demanding. How can we move foreward on this?

Thirdly:

• Another really challenging issue in front of us is the "greening" of trade. In OECD and WTO there is agreement that trade liberalisation will contribute to sustainable development if environmental costs are properly reflected in prices, and effective environmental polices are implemented. However, this is far from being the case in practice. What should we do in the meantime? Trade policies without proper integration of environmental concerns could become a major threat to sustainable development.
• The OECD and the WTO, together with UNEP, should enter into an even closer dialogue on these issues, as we prepare for the WTO Ministerial Meeting in Singapore in December. It will be important for all of us to be able to point out concrete results of the trade and environment dialogue at that time.

And fourtly:

• Another useful path in my view is to strengthen our efforts on how taxes can be used in a more systematic way to promote sustainable development, and in particular how they can be shifted from labour to environmentally damaging activities. Various aspects of this theme have been analysed in several fora, including the OECD. I have proposed an overview OECD-study of how the instrument could be used in such a way with a view to reporting to the General Assembly Special Session in 1997. The Canadian initiative to look at subsidies would also be important in this connection. I hope that colleagues will support this.

Mr. Chairman, in our debate today I think we should keep strongly in mind the importance of our preparations for the General Assembly Special Session in 1997. The role of the OECD - and of OECD countries - on the issue I have mentioned, and others, will be crucial to the success of that meeting.

Thank you, Mr. Chairman.