Prudent development - a shared responsibility

2 Results and challenges

The Agenda 21 document from the Rio Conference invites governments to formulate national strategies for sustainable development. This strategy has been drawn up in response to that invitation and will be an integral part of Denmark's contribution to the UN World Conference on Sustainable Development - Rio+10.

This national strategy for sustainable development should be seen in the context of the international strategies for sustainable development in which Denmark participates. The EU is discussing its Sixth Environment Action Programme, which sets the framework for EU environment policy and for the integration of environmental considerations into all policy areas over the next ten years. The Sixth Environment Action Programme points to five main areas of activity for the next decade: climate; nature and biodiversity; environment, health and quality of life; sustainable exploitation and management of natural resources and waste; and international activities. At the European Council summit in Gothenburg in June 2001, the European Council adopted a long-term strategy for sustainable development, setting up specific objectives for health and the environment. The strategy advocates that environmental sustainable development be discussed at the EU spring summits under the Lisbon process on a par with socially and economically sustainable development.

Under the auspices of the OECD, Denmark has worked actively for sustainable development and the integration of environmental considerations. In May 2001, Denmark chaired the OECD Ministerial Council Meeting on sustainable development, where ministers for the environment, economy and finance all participated. At the meeting, the OECD countries adopted a strategy for sustainable development, which sets up a framework for integrating economic, social and environmental objectives and for decoupling economic development from environmental stress. On Denmark's initiative, the outcome of the meeting was that the OECD will develop sustainable development indicators to measure progress. These indicators will be incorporated into the OECD's evaluation of member countries. Denmark will strive to ensure that member countries follow up the OECD's work on sustainable development.

During the Danish presidency, the Nordic Council of Ministers has completed a crosssectoral strategy for sustainable development, targeted at integrating environmental considerations into sectors. It became effective on 1 January 2001, and the coming years will see a continuous effort to follow up objectives and activities where the individual sectors in the Nordic Council of Ministers are responsible for integrating environmental considerations within their respective areas.

Results

The 1990s was a period of economic stability, which benefited most Danes. Denmark has managed to achieve higher levels of employment and income, mainly through reforms of the labour market, the tax system and educational programmes. There are surpluses on the government budgets and the balance of payments. At the same time, social inequality has not widened. Although much still remains to be done, we have a strong basis for preserving and improving a welfare society of a high standard, which is to the benefit of all.

Denmark has followed up on the recommendations from the 1992 Earth Summit in Rio de Janeiro. Denmark has considerably intensified its international initiatives for sustainable development. Total assistance for sustainable development - including the development assistance framework and Danish environmental assistance - now accounts for 1.18 per cent of gross national income. Denmark has been, and will remain, an active coplayer in global negotiations on ensuring development and trade, global conventions and EU rules in the environmental area that have a high level of protection. Denmark is the first country in the western world to ratify and implement the Aarhus Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters.

During the past decade, Denmark has emphasised the importance of integrating environmental considerations into other policy areas and of fighting and preventing pollution and its impact on nature. Various targeted action plans have strengthened the concrete initiatives to decouple economic growth from adverse effects on nature and the environment.

The action plans and strategies include Transport 2005, Energy 21 and the Electricity Reform, Climate 2012, City of Tomorrow, the Urban Ecology Action Plan, Green Education and Training,Waste 21, Pesticide Action Plan II, the ProductOriented Environmental Strategy, the Chemical Strategy and action plans for particularly problematic chemicals, Aquatic Environment Plan II, the Natural Forest Strategy and the Strategy for Sustainable Forestry.

While the economy showed a strong upswing during the 1990s, Denmark also managed to reduce emissions of various pollutants - especially SO2, NOx and CO2 - and total energy consumption stabilised. The objective of limiting the discharge of nutrients to the aquatic environment from municipal wastewater treatment plants and industry has been met, and progress has also been recorded in the agricultural sector. More than 200 of the most harmful pesticide products have been removed from the market. Over the past ten years, more than 8,000 ha of lakes, streams, meadows and moors have been restored, and about 18,000 ha have been planted with trees.

The results of the initiatives taken so far have been accomplished through regulation and a wider use of economic measures. With the Danish tax reform of 1993 and subsequent adjustments, the Danes were among the first to implement a "green tax reform" - a switchover from tax on personal income to tax on environmental impact. The reform served a dual purpose: making environmental costs more transparent to consumers and boosting the incentive to work.

Challenges

Growing international trade and the higher pressure on the Earth's natural resources have made the individual countries more interdependent. The globalisation of the economy means that many problems, including environmental ones, can only be solved through international cooperation. Projections on the state of the global environment indicate that growth in the world economy, global population growth and significantly higher consumption levels will intensify the pressure on natural resources. According to international forecasts, the world population is expected to grow to some 7. 5 billion over the next twenty years, and per capita consumption is expected to increase by one third over the same period.

The new global market terms involve sharper competition. Moreover, the enlarged European market opens up new business opportunities. Environmental aspects are becoming a competitive parameter, and Danish companies already enjoy a strong position. New technology, information and communication technology and the Internet will increasingly change the day-to-day lives of companies and people. This facilitates the exchange of knowledge, but also entails steadily higher expectations for openness and transparency in companies and the public sector and for transparency in the decision-making process.

The global knowledge economy is riding a new industrial wave where scientific and industrial breakthroughs in fields such as biotechnology, microelectronics, energy technology, telecommunications and new materials will change the world. Several of these technologies can potentially contribute to decoupling economic development from environmental impact and resource consumption. At the same time, technological advances may involve risks and uncertainty, for example in conjunction with the release of genetically modified organisms into the environment.

Denmark must take active steps to meet the challenges and ensure that growth in the economy and living standards does not step up pollution and cause more damage to the natural environment. Within the past two decades, Denmark has managed to implement targeted initiatives that limit and reduce the environmental impact per unit produced. Even so, increased consumption has offset the reduction in environmental impact in a number of cases. Denmark is responsible for ensuring that its reduction in environmental impact does not result from transferring polluting production to other countries.

One of the greatest challenges at the global level is to meet the threat from climate changes. Climate changes will alter the basis of the natural environment and, in particular, threaten the already poor countries and small archipelagic states. The world's biodiversity is under pressure from various human activities. Poverty, hunger and scarcity of basic natural resources are the causes of conflicts, which give rise to severe refugee problems in some regions.

In Denmark one environmental challenge in the years ahead will be the large number of chemicals from products, emissions, discharges and waste, which spread to the environment through many routes and can affect health, the environment and nature. Other challenges will be to decouple economic growth from the impact on the environment and human health in areas where this has not yet been accomplished. The growing demand for transport contributes to global climate changes and to local air pollution in cities. Improved resource utilisation and reduced waste volumes are other challenges for the coming years. Danish nature is exploited intensively, both in rural areas and at sea. In spite of the measures taken, species and landscape types are still decreasing in number. The challenge lies in developing and introducing more environment-friendly production methods that prevent any deterioration in biodiversity.