A shared future - balanced development
1. Visions and objectives
This is Denmark’s National Strategy for Sustainable Development.The Strategy starts with a description of how Denmark contributes to promoting global and national sustainable development that focuses on the interests of future generations and on nature protection.
The World Commission on Environment and Development (better known as the Brundtland Commission) defined sustainable development as: "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs."
It further reads: "In essence, sustainable development is a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations."
The definition set out in the Brundtland Report (Our Common Future) sums up a number of thoughts and visions relevant to us all.The definition still underpins Denmark’s view of sustainable development.
Sustainable development incorporates three interdependent and mutually reinforcing dimensions:
 | The economic dimension (economic resources, development and growth). |
| The environmental dimension (natural resources, protecting and exploiting nature sustainably, and preventing and combating pollution). |
| The social dimension (social resources, solidarity, and combating poverty). |
Sustainable development is an ongoing process that involves improving the integration of environmental, economic and social considerations.
Denmark is to be a society where economic progress can go hand in hand with an improved environment. Necessary incentives and opportunities must exist that enable individuals to contribute with their own initiatives.The population should enjoy a good framework for employment, living conditions, social conditions, and quality of life. Sustainable development implies that we must face up to economic, environmental and social challenges simultaneously. Future generations should have at least as favourable opportunities for a good life as we have at present.We must ensure sound economic development which is socially balanced. This development must provide for greater individual freedom of action, display respect for the limits of nature and the environment, and have no negative impact on people’s health.
Sustainable development cannot be achieved in one country alone. Global sustainable development envisions a world of economic progress, increased welfare, and better environmental protection. This development is for the benefit of all, including the less powerful and less developed parts of the world.Therefore, sustainable development also presupposes openness, democracy and respect for human rights. As an affluent country, Denmark has a special responsibility to assume a leadership role in developing a global, sustainable community. Hence, Denmark will continue to be actively involved in international cooperation on the environment and development.
Sustainable development requires global cooperation and international solutions. At the same time, Denmark must not relax its efforts on the home front. In Denmark’s National Strategy for Sustainable Development, the Government presents what Denmark will do to ensure a society in balance. The strategy represents Denmark’s response to the challenge presented at the 1992 Rio Conference and contributes to meeting international obligations towards the promotion of sustainable development. Sustainable development is an overall objective for European cooperation in the EU, cf. Article 2 in the Treaty on European Union, stipulating that, the objective of the Union is to promote economic and social progress and a high level of employment and to achieve balanced and sustainable development.
The Danish vision of sustainable development is based on eight objectives and principles:
The welfare society must be developed and economic growth must be decoupled from environmental impacts.
There must be a safe and healthy environment for everyone, and we must maintain a high level of protection.
We must secure a high degree of biodiversity and protect ecosystems.
Resources must be used more efficiently.
We must take action at an international level.
Environmental considerations must be taken into account in all sectors.
The market must support sustainable development.
Sustainable development is a shared responsibility, and we must measure progress.
These eight objectives and principles reflect the areas where there is a special need for Denmark to work at achieving sustainable development.
The welfare society must be developed and economic growth must be decoupled from environmental impacts.
Welfare must be protected, strengthened and extended. On the other hand, the welfare society is under pressure. Over the next 30 years, we will see a rapid increase in the number of elderly, while economically active persons will account for a steadily diminishing proportion of the population. If we maintain the government budget surplus, we can repay a large amount of our national debt in the years ahead.The money we are currently paying as interest can be redirected towards meeting the rising costs of pensions, home-help schemes, old-age care, hospitals, etc. In May 2002 the Danish Government submitted a broad strategy for growth, "Determined Growth". "Determined Growth" aims to create more jobs and greater productivity. Reforms and structural improvements will be initiated by the Government in order to create a good framework for growth. Growth should, though, also be environmentally sustainable.
The development of the welfare society demands that greater focus is placed on individual opportunity and free initiative. By strengthening the impetus for new initiatives and the desire for success, Denmark can achieve the necessary economic foundation for a welfare society. Having a job must be regarded as worthwhile, so that everyone capable of working finds employment.This will be to the benefit of all. It will also provide more resources for supporting disadvantaged groups who are unable to support themselves. Change and development must go hand in hand with a feeling of security and social stability.
All Danes must be guaranteed a dignified and safe old age irrespective of whether they have had an opportunity to save.The state retirement pension will continue to play a pivotal role in the pensions system of tomorrow, which will be financed by the interest expenses saved and by labour market reforms which increase the workforce. In addition, Danish labour market pensions will expand as the ratio of the elderly to the population grows. Labour market pensions and private pensions will thus supplement the state retirement pension.
We must create a more inclusive labour market where more people join the workforce and where there is room for those who do not fully meet the high demands for efficiency. Conditions for members of the workforce aged 50 or over need to be improved to reduce the number of people claiming early-retirement pensions, disability pensions, etc. Flexible working arrangements for the disabled (flex jobs) should also be facilitated.
We must become better at using the workforce resource represented by immigrants, at ensuring that fewer claimants require cash benefits, and at preventing sickness absenteeism.
In order to ensure that as many people of working age as possible are given the opportunity of being an active member of the workforce, central and local government must provide daycare for children and care for the elderly.
Long-term sustainable development is only possible in a society that solves fundamental social problems in relation to disadvantaged groups. The Danish Government’s reform programme "The Common Responsibility" aims to strengthen initiatives for helping disadvantaged groups in society. The programme consists of both an expansion of public initiatives and increased inclusion of the voluntary sector in work in the social field.The objective is to improve the quality of life for disadvantaged groups. At the same time, preventative measures in situations which can typically end in social exclusion must be strengthened. By doing so, we counteract the tendency for social problems to become chronic and a burden on society in the future. This will contribute to strengthening social sustainable development.
The welfare society must continue to develop. In future, the common responsibility for addressing a range of welfare tasks must be combined with individual freedom to choose between different solutions. People should have the opportunity of choosing between various private and public solutions within a number of service areas.
An active policy must be pursued to promote sustainable development, and active environment policy must be pursued to ensure that future generations can live in a clean environment.There is international agreement on the fact that decoupling is the overall challenge in relation to ensuring sustainabledevelopment. This is stated in the EU’s Sixth Environment Action Programme, which sets the framework for initiatives in the next decade in the EU.The European Council in Gothenburg underlined the importance of decoupling economic growth from use of resources. As a result of the work of the OECD on sustainable development, which was discussed at the OECD Ministerial Council Meeting in May 2001, decoupling was highlighted once more as one of the main challenges in relation to sustainable development.
Initiatives need to be taken in environmental policy in order to meet these ambitious environmental goals, even though much has already been achieved. In a number of crucial areas, it has been possible to decouple the connection between economic growth and increased pollution.This applies to the energy area, for example. However, other areas of significance to our health, environment and nature still present sweeping challenges. It is crucial that we ensure "the most cost-effective approach for society when achieving environmental objectives", and that the effort is made where the greatest environmental benefit can be achieved - that the most efficient means are applied.
Some impacts on our health, environment, nature or resource utilisation are so critical as to demand new solutions. For example, the impact on the climate system is crucial because changes in the balance of the system are expected to have serious implications for life on Earth.
Sustainable development implies a balance between generations. Future generations should be offered at least as favourable opportunities for a good life as we have at present.Therefore, we must safeguard our economic, social and environmental resources.We must avoid critical impacts on the environment, nature and health, and we must protect and preserve special and unique natural values, which cannot be restored if they disappear.
These challenges must be met through a range of measures, according to which is the most efficient. Sustainable development may be promoted through an increased use of market-oriented measures, for example taxes, subsidies and tradeable quotas, as well as through information and dialogue with citizens and enterprises. Research into causal relationships and into new environmental and societal problems influences society’s ability to take the proper, preventive decisions at an early point, and thereby to achieve sustainable development.
Indicators can tell us whether society is heading for sustainable development.These may include indicators measuring impacts on critical nature and environment factors and indicators showing whether economic growth is being decoupled from pressures on the environment and nature. The "Genuine Savings" concept is an economic indicator for developments in the total wealth of society. This concept is used to determine the value of economic, social and environmental resources. The "Genuine Savings" concept is being developed and must be supplemented by analyses of critical impacts on health, the environment and nature. Combined with the other indicators, "Genuine Savings" can provide a picture of whether or not developments can be described as sustainable. The first analysis from 1998 seems to indicate that "Genuine Savings" are positive in Denmark.
The environmental quality in Denmark must not be harmful to humans, animals and plant life. Steps must be taken to ensure that soil, air and water are sufficiently clean and free from harmful compounds and micro-organisms so as not to impact the health of humans, plants and animals.The Danish Government’s objective is that Denmark must be one of the most efficient OECD countries at reducing pollution.
Climate changes are among the greatest global challenges of this century.Therefore, we should stabilise the concentration of greenhouse gases at a level that prevents harmful, man-made effects on the climate system.To live up to the Kyoto Protocol, Denmark has undertaken to reduce total emissions of greenhouse gases by 21 per cent from the 1990 level in the years 2008 to 2012.
The manufacture, use and disposal of products and goods must not be harmful to the environment and human health.The Government will formulate a comprehensive strategy, focusing on the measures that can be taken in relation to the health impact of environmental factors. Consumption of hazardous chemicals must be reduced to a minimum. Industry must assume responsibility for examining the hazards of chemicals and ensure that they can be used without jeopardising health and the environment.We are taking active steps against hazardous chemicals, and in 2020 it will not be allowed to market or use any products containing chemicals that entail particularly undesirable effects on health or the environment
Maintenance of a high level of protection for humans and the environment is important.The European environment policy is based upon the precautionary principle, the principle on preventative measures, the principle that interventions with regard to environmental damage should take place primarily at the source, and the polluter pays principle.
The precautionary principle will be instrumental in securing this protection and is a principle recognised by treaty in the EU as well as Danish policy. We must take action at the smallest hint of any unacceptable risk or hazard.
Nature and the ecosystems are vital to all life on Earth.The development potential of both present and future generations depends on viable and varied natural resources.This is why we must enhance the quality of nature and increase the forest area.
International projections show that global economic development over the next 20 years will endanger the world’s biodiversity.This means that a ranæge of ecosystem functions such as the water cycle and decomposition of waste products are also threatened.That is why we must reduce physical impacts on nature and in particular the discharge to nature of nutrients and environmentally harmful compounds. In the interests of our descendants, industries that are detrimental to nature must adjust their use of natural resources and contribute to the development of technological solutions so that environmental impacts can be curtailed.
Certain values inherent in cultural and natural landscapes, special landscape types and the diversity of species and genetic pools are irreplaceable. We must prioritise and target the initiatives to protect biodiversity by enhancing the quality of existing natural areas, increasing the size of natural areas and developing better cohesion between natural areas.We must ensure that the population has easy access to outdoor recreation and enjoyment of nature in forests and in the open country. Finally, we must - also out of consideration for tourism - safeguard our historic environment, including historic traces in the landscape and the historic heritage that lives on in rural districts and coastal regions.
Over the coming years, we can expect a growing global population and increasing economic wealth - also in developing countries.We must therefore use the available natural resources in a sustainable way. Danish enterprises must produce their products efficiently so that still fewer resources are used per unit produced.This will contribute to ensuring the competitiveness of Danish enterprises in the global market, where scarcity of resources must be anticipated.
We must adjust our patterns of consumption and methods of production so that the production and consumption of goods and services are less detrimental to the environment and offer improved resource utilisation. During the years ahead, resources must be used more efficiently to limit waste volumes and cut down the spread of pollutants. Resource efficiency can contribute to improving competitiveness, for example due to cost savings.
In Gothenburg, the European Council underlined that clear and stable objectives for sustainable development will create significant economic opportunities. This bears the potential of starting a new wave of technological innovation and investment, thus creating growth and employment.The European Council encouraged the commercial sector to participate in the development and to use more new, environmentally friendly technology, for example in the energy and transport sectors.
The UN Secretary General has pointed to changes in production and consumption patterns as a significant challenge towards sustainable development. In connection with this, decoupling and targets for resource efficiency improvement in the order of a factor 4 and a factor 10 have been identified. As part of the Danish Government’s efforts to achieve sustainable development and sustainable production and consumption patterns, a long-term target has been set to limit resource consumption to about 25 per cent of the current level. There is a need for further specification of initiatives concerning the use of resources in the future.This should be seen against the backdrop of international discussions on the formulation of targets for resource efficiency improvement in the order of a factor of 4 over the next two or three decades and a factor of 10 in the longer term.This process was initiated at the UN General Assembly Special Session (UNGASS), held five years after the Rio Conference. Factor 4 means that resource efficiency is increased by a factor of four compared with the present level - i.e. a 100 per cent increase in utility value combined with a 50 per cent reduction in resource consumption.The factor 10 concept implies a 50 per cent cut in global material flows and an equal distribution of resource consumption among the global population.This means that the industrialised countries will have to achieve resource efficiency improvements in the order of factor 10.
Technological breakthroughs and innovation are necessary.We must continue to develop new technology, new materials and new solutions to redirect society towards sustainable development. The wider use of existing technologies and new technological breakthroughs present an opportunity to develop more sustainable methods of production. By changing the technological bases of production we can in the long-term significantly reduce the dependence of society on certain resources. New sources of energy, for instance fuel cells, will be capable of reducing CO2 emissions significantly. The use of new types of materials can lower resource consumption and open up more recycling possibilities. Information technology and biotechnology may also pave the way for new environmentally friendly production methods and products. Therefore, it is important to provide the right framework and a strong platform for the development and dissemination of new environmental technologies and for the removal of any barriers to the market access of such technologies.
Denmark will work actively to promote global sustainable development.We have a share in the responsibility for improving the world around us. In the areas where we possess special knowledge or that are high on the political agenda, Denmark may need to take the lead.
Denmark will contribute to creating a world of peace and stability building on democracy and respect for human rights. Denmark must sustain its efforts to combat poverty and achieve growth and social development in the poor countries of the world. Economic and social development in the poor regions of the world must contribute to global sustainable use of resources and conservation of nature and the environment. Denmark’s development assistance currently accounts for significantly more than the UN target of 0.7 per cent of gross national income, and Denmark is one of the countries in the world that contributes most in relative terms. Denmark will give priority to multilateral and bilateral assistance to developing countries and Central and Eastern European countries in partnership with governments, civil societies and business communities in these countries, so that we achieve the most efficient measures.This long-standing contribution has been instrumental in strengthening Denmark’s international credibility and goodwill.
In connection with international activities, the use of the so-called flexible mechanisms, such as "joint implementation", allow for CO2 reductions to be achieved in the most efficient way in relation to the measures employed.
Many of the environmental problems we are facing are global or regional.Thus, they can only be solved through international cooperation. Denmark is working actively to improve European and international environmental protection through EU cooperation. Denmark will continue contributing to the ongoing follow-up and implementation of the EU’s Sixth Environment Action Programme. Denmark will help integrate environmental considerations into EU sector policies, and attaches importance to ensuring that the EU Heads of State and Government follow these endeavours. Denmark will hold the EU presidency in the second half of 2002. This will afford a special opportunity to set high-priority objectives on the agenda. Not only in an EU context, but also in the broader contexts where the EU plays a role. Denmark will work for an active follow-up to the OECD’s sustainable development strategy along the lines of the OECD Ministerial Council Meeting on sustainable development held under Danish chairmanship in May 2001.
The World Summit on Sustainable Development will be held in South Africa in August-September, 2002. Denmark, holding the presidency of the EU, will work for the creation of a new global deal on sustainable development and global partnership. Elements of such a deal could be that the industrialised countries undertake to decouple economic growth from environmental impacts and support developing countries in realising growth and reducing poverty. Elements could be improved market access, debt relief, investments and technology transfer. At the same time, developing countries must live up to their international commitments and integrate environmental considerations into their production and administration.
The integration of environmental considerations into policies and decision-making processes is a prerequisite for achieving sustainable development where economic growth is decoupled from increasing environmental impacts and growing resource consumption.This makes all sectors and authorities responsible for integrating considerations for the environment, health and sustainable development into all decision-making processes within their respective areas. This applies at central level, as well as for enterprises and citizens at local level.
An important model is the work within the EU to integrate environmental considerations into sectoral development, the so-called "Cardiff Process". The Cardiff Process is one of the most important new tools in the EU’s sustainable development policy.This process means that all sectors are responsible for developing strategies and indicators for the integration of environmental considerations within their policy areas, with a view to achieving sustainable development.The Cardiff Process was initiated by the European Council as a follow-up to Article 6 of the Treaty establishing the European Community where it is laid down that requirements for the protection of the environment must be integrated into the definition and implementation of Community policy and activities with a view to promoting sustainable development. The Council has so far asked nine bodies to develop strategies for integration on the background of environmental considerations.
In Denmark we have worked at integrating environmental considerations in various ways and at different levels. Bills and other Government proposals presented to the Danish Parliament are required to undergo a strategic environmental impact assessment to ensure that environmental consequences form part of the decision-making basis. Similarly, the environmental impacts of largescale, central-government engineering works have to be assessed. For many years, environmental action plans have been drawn up in a variety of policy areas.
Today, only 10 to 20 per cent of Danish companies regard environmental aspects as a competitive parameter. There is a vision that the vast majority of Danish companies will turn the way they undertake their social responsibility into a strategic advantage in the market. This goal will mainly be accomplished by ensuring that companies integrate environmental considerations into their decisionmaking processes.
However, there is still a need for strengthening the comprehensive and cross-sectoral approach.The integration of environmental considerations into sectors, policies and decisions will remain a crucial element in Denmark’s commitment to sustainable development.
Sustainable development and economic progress are not mutually incompatible. Businesses engaged in significant environmental initiatives generally do well in competition. Forward-looking commitment to the environment and sustainable development may stimulate competitiveness and the transition to the knowledge economy. The development and dissemination of sustainable technologies are important instruments in preparing enterprises for the demands of the markets of the future.
It should pay to show environmental concern. One of the ways of achieving this is to ensure that those who produce, supply, dispose of or consume products and services pay the environmental costs. Prices that reflect the actual costs to society encourage consumers and producers to make sustainable choices. The polluter-pays principle must be followed. Market-oriented means such as environmental taxes, subsidies and tradeable quotas can be used for this purpose.The Government wishes to explore how the use of market-oriented instruments can help solve environmental problems in the most cost-effective manner for society. The Government will therefore examine whether changes in environmental taxes, amongst other things, allow for the possibility of achieving a more cost-effective solution for society in terms of environmental improvements.
Denmark will work towards obtaining international agreement on environmental taxes. As a first step in this process, common minimum tax rates should be set for environmental taxes in the EU.The choice between different measures depends on the challenge to be addressed. It will often be necessary to choose a combination of measures that together generate the right changes in behaviour.The OECD report on policies that promote sustainable development contains specifically a number of recommendations to OECD countries with a view to encouraging the market to support sustainable development.
Therefore, the Danish Government will prepare a report on green market economy, which is to analyse the practical possibilities of increased use of market-oriented measures to promote a better environment. Achieving a market that supports sustainable development calls for consumers and, therefore, the market to make more demands on environmental initiatives by enterprises. Reliable information about how products affect the environment is important in order to increase supply and demand for environmentally friendly products. Incentives and framework conditions that make it attractive for both manufacturers and consumers to supply and demand sustainable products are to be created. This will help ensure that market forces succeed in achieving environmental objectives in an efficient manner.The Government also has the objective that Danish enterprises and investors are able to document easily their environmental activities and that consumers have clear access to information on how products are produced.
The public sector itself is an important consumer and therefore has the potential to influence the market.
Sustainable development is a shared responsibility, and we must measure progress.
Sustainable development is only achievable if all parties make a contribution and assume responsibility for integrating and promoting considerations for the environment and sustainable development in their decisions. Consumers and producers, employees, society’s institutions, children and young people are all key players in the achievement of sustainable development.They must be involved and share in the responsibility. Information, education and teaching can disseminate knowledge about sustainable development and thereby change attitudes and behaviour. Public participation in decisions on and the implementation of the sustainable development strategy is essential. Therefore it is important that there is broad public support and confidence in the policy for sustainable development pursued.The Aarhus Convention, specifying principles about the environmental rights of citizens, has now been introduced in Denmark.
Research and development must ensure that we always have a good knowledge base. At the EU summit in Barcelona in the spring of 2002 it was decided that the total expenditure on research and development in the EU should be increased to a level of about three per cent of the gross national product (GDP) by 2010.This includes research into fundamental causal relationships and into how activities in society have a bearing on people and nature. This will enable us to make the right decisions, prioritise activities and choose the right measures. Environmental economics, environmental behaviour, forecasts and scenarios for the anticipated development are core areas. Environment policy must be knowledge-based.
The Government has established an Environmental Assessment Institute.Through research at a high international level, the Institute must ensure that environment targets are reached in the most cost-effective way. The Institute must achieve a general view of the current and long-term environment situation, both in Denmark and globally. In relation to this, the institute must call upon and utilise all the knowledge and competencies that have been built up by other national and international research institutions. Furthermore, this knowledge and insight must be disseminated to the public and to political decision makers.
The Government will continuously monitor and report on the progress made in implementing Denmark’s national sustainable development strategy. In association with the strategy there is a set of indicators that describe the objectives and activities of the strategy.The indicators will be updated each year and made accessible to the public via a website on the Internet about sustainable development. The indicators will be updated every year making it possible to keep abreast of progress in meeting the objectives.