The World Summit in Johannesburg and Denmark's National Strategy for Sustainable Development

The World Summit in Johannesburg and Denmark's National Strategy for Sustainable Development

International development, the environment and trade

The developing countries must receive assistance to achieve sustainable development. Denmark contributes through development assistance, which also includes environmental initiatives for developing countries.The multilateral trade cooperation regulated under the WTO is extremely significant for the ability of developing countries to achieve sustainable development and for the further development of international free trade.

The Johannesburg Plan emphasises that there is a close relationship between environmental and development problems both at local level in the poorest developing countries and at global level

In June 2003, the Danish government issued its publication "A World of Difference" in that outlines the vision for new priorities for Danish development assistance for 2004-2008, including within the environment field.The Government places priority on ensuring that endeavours to create global stability and development take account of environmental sustainability in development assistance.

Environmental concerns, in line with equal opportunities and the human rights aspect, will continue to be included as a cross-cutting aspect of Danish assistance, irrespective of the sector. An annual amount of DKK 2 billion will continue to be applied as development assistance for the environment and environment-related activities in 2004-2008.

This includes funds especially earmarked for environmental assistance. DKK 446 million per year for special environmental assistance, including for the urban environment, sustainable management of natural resources and energy, as well as for preparation of projects to reduce emissions of greenhouse gases in developing countries. In addition, as something new over the next five years, a total of DKK 150 million has been earmarked for environment initiatives in multilateral regional assistance and global environment initiatives will be enhanced by an extra DKK 415 million.

Moreover, the proposal for the 2004 Danish Finance Act has allocated DKK 200 million for each of the years 2004 to 2007 to purchase credits from CO2 reduction projects. Initially, half of these funds will be applied on reduction projects in developing countries (the so-called Clean Development Mechanism projects).

The Government will prepare a new strategy for total Danish environment initiatives in developing countries.The strategy will cover priorities and principles to realise the special environment assistance, environment sector programmes, global environment programmes, and the environment as a cross-cutting issue. At the end of 2003, the Danish government will also prepare an action plan for Danish follow-up to the Johannesburg Summit, focusing on cooperation with developing countries.

The Johannesburg Plan recognises the prominent role trade can play in achieving sustainable development and combating poverty

It was not possible to reach agreement at the WTO Conference of Ministers in Cancún in September 2003. After this, it was decided to continue work at officials level. Before the end of the year, the General Council of the WTO will meet to take the steps necessary to conclude the negotiations within the previously set time limit of 31 December 2004.

Through the EU, Denmark has stressed that the Cancún Conference of Ministers should secure the developing countries greater benefits from international trade cooperation and thus resources to promote sustainable development.The EU is ready to meet the requirements of the developing countries in a number of important areas such as reductions in customs duties, limits on internal subsidies and export subsidies for agriculture, and acceptance of a large number of wishes regarding special and differential treatment of developing countries, including regarding implementation of existing WTO regulations.

The Government is giving high priority to including environment issues in WTO negotiations to a greater extent.The "development agenda" in both the Johannesburg Plan and the Doha WTO negotiations round emphasises the necessity that international trade, as well as national and international objectives for environment protection, support each other.Throughout the entire negotiations the EU maintained its demand to secure permanent inclusion of the environment conventions in negotiations on the relationship between the WTO regulations and trade provisions in international environment agreements. The call in the Johannesburg Plan for more market access for environmentally friendly goods and limitations on the use of non-sustainable subsidies continues to be a central negotiation issue on the Doha agenda, and Denmark will give high priority to this issue.

Denmark will continue efforts to achieve the trade-policy objectives in the Johannesburg implementation plan. In view of the developments in the WTO and experience with Danish multilateral and bilateral trade-related assistance, the Government strategy for Trade and Development will be updated. For example, it is necessary to examine how more focus can be afforded to the sustainability aspects in the strategy.