Dr. Stefanos Fotiou, UNEP

SUSTAINABLE CONSUMPTION: OPPORTUNITIES, MYTHS AND POLICY OPTIONS FOR ASIA

The consumer in “internal

conflict”2

I’d like to end poverty, stop violence and racism,and get rid of pollution.

Everyone should be equal.

I want to dress in “brand name” clothes,drive a great car, talk on the latest

smart phone, and use my brand new tablet PC

It is about choices3

How we choose?

Classical consumption theory (Neoclassical economics)

• Rational, utility-seeking people who try to maximize

• Same information is available to all consumers

An alternative view (Veblen; Institutional economics)

• People are irrational creatures who chase after social statuseven if this is more costly

• People do not just consume things, they consume symbols

More on the alternative view4

People attempt to mimic the more

“respected” (visible) members of their group in order to

gain more status

Consumption as a symbolic act, through which

people generate meaning and

express identity

Where is the opportunity?5

Consumers’ behaviour

MarketingEducation

Promote sustainability as a mainstream identity of consumers’

choices

UNEP Asia Pacific Conference on

Sustainable Consumption6

Nepal, June 2013

Under the SWITCH-Asia Regional Policy Support Component, UNEP, the Nepalese Government and the Asia Pacific Roundtable on Sustainable Consumption and Production (APRSCP) convened a two-day Technical Workshop on sustainable consumption policies in the Asian region on 20-21 June 2013 in Kathmandu, Nepal. As a platform for dialogue, participants, mainly policy makers and practitioners, discussed the progress of mainstreaming sustainable consumption policies and tools in economic and development policies and poverty alleviation strategies in their countries.

Outlined “Myths” on Sustainable Consumption and Identified policy options.

Myths about Sustainable Consumption

Myth #1: Sustainable Consumption contradicts poverty eradication

Misconception Reality

SC is consuming less It is about consuming for well being.

SC does not support

economic growth.

Sustainable consumption is primarily concerned

with the quality of growth, rather than the

quantity of growth. The World Economic Forum

recently recognised SC as a direction for business.

Myths about Sustainable Consumption

Myth #2: Informed consumers will consume sustainably

Misconception Reality

Consumers are the one driving

demand.

The most influential decisions on the product

are made at earlier stages.

People consume sustainably with

the right information.

People do not always act in a rational manner.

Government advocacy of SC is

against freedom of choice.

Governments already regulate alcohol, for

example, in the interest of public safety and

health, and subsidise fossil fuels.

Infrastructure also plays a major role.

Myths about Sustainable Consumption

Myth #3: Economic growth leads to improved wellbeing

Misconception Reality

GDP/capita is a measure of

welfare and development

In many countries, including in Asia, growth has led to

rapidly increasing inequality.

Countries can “Grow first

and clean up later”.

For local pollution of air and water the situation tends

to improve as countries get richer. But for global issues

like climate change and overuse of resources, there is

no such effect. Lock in plays a stronger role.

Myths about Sustainable Consumption

Myth #4: Small environmental actions lead to big changes

Misconception Reality

Small actions are “entry

points”.

People acting more sustainably in one area (e.g.

buying green products) don’t usually act sustainably in

all areas (e.g. recycling, energy efficiency).

Over time these small

environmental actions will

add up

While sustainable initiatives are growing, the

unsustainable ones are growing at a faster rate.

People do not want

government to develop

strong sustainability

measures.

There is empirical evidence that people take strong

pro-environmental actions if the measures are justified

and fair. Research shows that citizens feel left out

when the extent of the environmental problem is not

fully communicated to them.

What we can do?11

Policies

Finance

Technology

Behaviour

Market

Influence

Choices

Policies for Sustainable Consumption

Policy option 1 - Shifting market practices: promoting sustainable consumption from the supply side

Policy areaProducts Product bans or restrictions (plastic bags, Incandescent

light bulbs)

Product information – testing, certification, labels

Business

models

Servicing: shift from selling physical products to selling services

Repair and second hand (redistribution)

Social enterprises

Distribution

and Retail

Choice editing – eliminating the worst (IKEA)

Localising – sourcing and prioritising local suppliers

Consumer co-ops - farm to table

Advertising Plays a major role in shaping expectations about well being.

Restrict the amount and types of advertising

Tax on advertising

Policies for Sustainable Consumption

Policy area 2: Policy Integration for Sustainable Consumption

Policy approachesCommitment and leadership from the highest level is crucial

A shared understanding of sustainable consumption should

be promoted

There needs to be a coordinating body

Stakeholder involvement is key to success

Actions should be based on best available knowledge

Sustainable Public Procurement

Policies for Sustainable Consumption

Policy area 3: Protecting Traditional Sustainable Consumption Practices

Policy options

Preserving traditional practices that are less resource intensive, less polluting and promote individual and social well-being.

Protecting the population segment living within ecological

limits.

Protecting micro enterprises

Policies for Sustainable Consumption

Policy area 4: Using economic measures to shape consumption

Policy options

Taxes on natural resources and pollution

Full-cost pricing and use charges

Elimination of environmentally harmful subsidies

Deposit-refund schemes

Policies for Sustainable Consumption

Policy Area 5: Shifting the Social Context around Consumer Behaviour

Policy approach

Make the more sustainable choice the default option

Provide actionable information and tools

Reward and highlight sustainable behaviour

Encourage community/collaborative over individual participation

Some UNEP global initiatives17

youthXchange

Global Survey on Sustainable Lifestyles

Education for Sustainable Consumption

Sustainable Lifestyles and Education

Programme of the 10 Years Framework of

Programmes on Sustainable Consumption and

Production (10YFP)

YouthXchange18

YouthXchange toolkit19

Survey on Sustainable

Lifestyles20

Key recommendations

Young people want local options that

they can include in their daily lives

There is a need to build trust and participation

Promoting research and education for

sustainable lifestyles

Education for Sustainable

Consumption21

Education for Sustainable Consumption

is essential to empower individuals and social groups

Aggressive

commercial

messages

Ensuring awarenes

s of consumer

rights

Proactive AND

protective measures

Choose responsible, sustainable

lifestyles

SLE programme of 10YFP22

VisionA world where sustainable lifestyles are desirable, beneficial and accessible for everyone, enabled, supported and encouraged by all sectors of society, including governments, the business sector and civil society.

SLE programme of 10YFP23

Mission To foster the uptake of sustainable lifestyles as the common norm, with the objective of ensuring their positive contribution to addressing global challenges, such as resource efficiency and biodiversity conservation, climate change mitigation and adaptation, poverty eradication and social well-being. This will be done through multidisciplinary research and multi-stakeholder cooperation, through the promotion of participative and bottom-up approaches, innovative policies, economic instruments and technologies, awareness-raising as well as all forms of education

SLE programme of 10YFP24

Objectives1. Build a shared vision of sustainable lifestyles: achieve a common framework of understanding of sustainable lifestyles through multi-disciplinary approaches, giving full consideration to consumption behaviours as well as to what determines them;

2. Integrate sustainable lifestyles principles and practices across all sectors of society;

3. Develop tools and incentives, provide capacity-building for achieving sustainable lifestyles and disseminating good practices;

4. Empower individuals to adopt sustainable lifestyles through education, awareness-raising and participation, engaging all forms of education;

5. Measure and track the benefits of action targeting sustainable lifestyles and their contribution to achieving global priority challenges such as climate change.

SLE programme of 10YFP25

www.unep.org/10yfp/lifestyle

s/26

Final notes27

Provide knowledge, values and skills to

enable individuals and societies to become

actors of change

Need to focus on contemporary events and conditions BUT address important issues like poverty

Sustainable consumption concepts

evolve and require modification and

updating

Stefanos Fotiou

United Nations Environment Programme

Twitter: @stefanosfotiou

Thank you!