GENERAL INTRODUCTIONThe European Union (EU) and its Member States consider that the United NationsConference on Sustainable Development (Rio+20), to be held in Rio de Janeiro on4-6 June 2012, offers a unique opportunity for our mutually interdependent world to securerenewed political commitment to sustainable development at all levels. The Conference willalso provide an opportunity to assess the progress made to date, identify remainingimplementation gaps and address new and emerging challenges since the UN Conference onEnvironment and Development in Rio de Janeiro in 1992 and the World Summit onSustainable Development in Johannesburg in 2002.The EU and its Member States are putting forward the present contribution in response to theinvitation from the Second Preparatory Committee of Rio+20 to provide inputs andcontributions in writing by 1 November 2011 for inclusion in a compilation document toserve as a basis for the preparation of the "zero draft" of the outcome document. Ourcontribution focuses on the two main themes of Rio+20, i.e. green economy in the context ofsustainable development and poverty eradication (GESDPE) and the institutional frameworkfor sustainable development (IFSD), as means of achieving the objectives of the Conference.While some progress has been made in advancing sustainable development over the lastdecades, around 1.4 billion people, mostly in South Asia and Sub-Saharan Africa, still live inextreme poverty and one sixth of the world’s population is undernourished. Unsustainableeconomic growth has increased the stress on the earth's limited natural resources and on thecarrying capacity of ecosystems, with 60% of the world's natural resources already beingused unsustainably or at their limit. Many environmental problems have not been solved andhave become more acute, and economic, social and environmental problems are closelylinked.Rio+20 should include democratic development and respect for human rights to achievesustainable development at every level and recognize democracy, the rule of law,transparency and accountability as means of meeting social, economic and environmentalchallenges, as well as the importance of gender equality and the vital role that women have inachieving sustainable development.Rio+20 should focus on strengthening the coherence and enhancing the linkages between theenvironmental, economic and social dimensions of sustainable development and contribute tothe achievement of the Millennium Development Goals (MDGs) by 2015 and of otherrelevant internationally agreed goals in the context of major UN conferences, in particularAgenda 21 and the Johannesburg Plan of Implementation. In this context, the two themes ofRio+20 offer promising ways to tackle remaining challenges.

Rio+20 should accelerate and broaden the world-wide transition towards a green economythat promotes sustainable development and contributes to poverty eradication around theworld. The EU and its Member States consider that a green economy offers win-winopportunities to all countries, regardless of the structure of their economy and their level ofdevelopment. Green economy is more than the sum of existing commitments: it has thepotential to lead us to a new development paradigm and a new business model where growth,development and environment are seen as mutually reinforcing each other. Increasingresource efficiency, promoting sustainable consumption and production patterns, tacklingclimate change, protecting biodiversity, combating desertification, reducing pollution as wellas using and managing natural resources and ecosystems in a sustainable and socially

responsible manner are both requirements and key vehicles in ensuring a just transition to agreen economy.The EU and its Member States consider that strengthening international environmentalgovernance is central to the pursuance of sustainable development, and that the necessaryreform of the IFSD also requires a bottom-up perspective, drawing on lessons learned at alllevels.The EU and its Member States support a forward-looking and focused political documentcapable of giving renewed impetus to sustainable development. In order to do that, Rio+20needs to agree on a shared vision for change, able to deliver results within agreed time frames.The EU and its Member States consider that the agreed political document should besupported by operational outcomes that should include a green economy roadmap withspecific goals, objectives and actions at international level as well as a package of reformswhich includes transforming the UNEP into a specialized UN agency for the environment,leading to a strengthened international environmental governance (IEG) as part of a morebalanced and effective IFSD.In spite of implementation efforts by governments and non-State actors in all countries,implementation barriers such as low political priority for integrated decision-making, missingor conflicting targets and measures or insufficient coordination between ministries stillremain. In order to address implementation gaps, we need to promote integrated strategies,public interest, awareness and participation, good governance and coordination andcooperation mechanisms between government departments and between government, localgovernment, civil society and the private sector. The key role of the private sector in thetransition to sustainable development needs to be recognized and made full use of.The experience and solutions found among the largest generation of young people in historywill be important for Rio+20. The EU and its Member States therefore consider theinvolvement of young people as agents for change vital for a successful outcome of Rio+20and for the continued implementation process.With a view to strengthening intergovernmental action, we propose to build a new alliancewith stakeholders through their enhanced participation in the decision-making,implementation and follow-up of Rio+20 outcome, as well as by launching sustainabledevelopment initiatives, networks and innovative partnerships at all levels.We acknowledge that funding for the implementation of sustainable development policies andactions will have to come from a variety of sources, both public and private. A joint approachby traditional donors, emerging economies, international financial institutions (IFIs) and theprivate sector is needed, addressing the 'silo' approach to channellng funds and ensuring amore effective identification and use of existing resoures, as well as mobilisation of availableand innovative sources of finance.The EU and its Member States remain strongly committed to playing an active andconstructive role in the preparatory process of Rio+20 with a view to contributing to asuccessful outcome.

GREEN ECONOMY IN THE CONTEXT OF SUSTAINABLEDEVELOPMENT AND POVERTY ERADICATIONa.1.IntroductionA just transition to a green economy will speed up the implementation of existingsustainable development commitments and help address the implementation gaps, whilebeing fully committed to respect for human rights and gender equality and contributingsignificantly to eradicating poverty. It will improve environmental justice and reduceinequalities, environmental scarcities and the stress on ecosystems by investing in andpreserving natural capital, securing sustainable and efficient use of resources andaddressing social concerns, while maintaining competitiveness. Democracy,transparency, good governance and accountability are essential means of meeting social,economic and environmental challenges and protecting people's right to live in a healthyenvironment, in dignity, and free from hunger and from fear of violence, oppression andinjustice. A sustainable, green economy will provide goods and services to all andsupports access to food, energy and sanitation for all. Education for sustainabledevelopment, including awareness-raising and consumer information, is of primaryimportance in changing behavioural patterns.The transition to a green economy has great potential to promote long-term sustainablegrowth, create decent jobs and hence eradicate poverty, focussing on inclusiveness andavoiding equity gaps. The need for a just transition to a sustainable system of productionand consumption that results in lower pressures on natural resources and theenvironment while improving the quality of life, prosperity and social well-being is nowwidely recognised. This requires that economic development be oriented to remainwithin the regenerative and absorptive capacity of the planet and contribute toeradicating poverty by shifting consumption and production patterns onto a sustainablepath. Various green-economy tools and defining necessary measures will help allstakeholders to implement the policies and actions needed to achieve sustainabledevelopment. The transition to a green economy will be a global challenge, which bothdeveloped countries and developing countries should embark on with ambitious nationaland international action. A commitment to open markets is important. Thetransformation to a green economy should not be used to introduce new trade barriers.To strengthen the linkages between social and economic areas, strategies at all levelsshould address all sectors in a horizontal way with a view to benefiting from cross-sectoral policy coherence while maintaining competitiveness. To this end, frameworkconditions should be established, primarily at national and sub-national level, makinguse of policies and actions able to establish favourable regulatory frameworks and alevel playing field for green markets such as fiscal incentives, emissions trading, gradualelimination of subsidies that have considerable negative effects on the environment andare incompatible with sustainable development, green public procurement, thepromotion of eco-innovation and clean technology, green entrepreneurship, knowledge-building schemes, etc. Social policies to reconcile social goals with economic policiesare also necessary. These initiatives should build on good governance, a dynamic andinnovative private sector, efficient regulation, reduced bureaucracy and marketinstruments. Ratification of the relevant ILO conventions is of utmost importance toensure that growth is not only economically and ecologically sustainable, but also fair,just and equitable, taking into account social issues and contributing to povertyeradication.

The EU and its Member States emphasise the importance of improving resourceefficiency and sustainable material management through full implementation of life-cycle assessment and of management of Low Carbon Development Strategies as agreedin Cancun. It is important to reflect environmental externalities in prices for resourcesand services and apply negative incentives with regard to negative external costs anddiseconomies, and to encourage activities with positive external effects.International action should be promoted and existing commitments reaffirmed in keysectors such as water, food and agriculture, fisheries, forestry, energy, the marineenvironment and chemicals, as well as in areas relating to the sustainable managementand restoration of natural resources and ecosystem services and the sustainablemanagement of waste along with both climate-change mitigation and adaptationprocesses. The aim is to foster favourable framework conditions forsustainabledevelopment,preserving and - where necessary - restoring natural capital and securingthe functions of ecosystems, hence ensuring benefit to all and contributing to povertyeradication, social development and environmental integrity.Special efforts are needed to enable poor people to participate in, contribute to, andbenefit from economic development. People who live in conditions of poverty and socialexclusion are more directly dependent on (local) natural resources and ecosystemservices. As key actors they should have a vital role in a green economy which promotesdecent work with effective respect for fundamental principles, rights at work, socialdevelopment, full freely chosen and productive employment for both women and menand combats child labour and forced labour by taking into account the implementation ofthe International Labour Standards and the ILO Declaration on Social Justice for a fairGlobalization with a view to integrating social development through global sustainabledevelopment. Improved water resource management and access to safe food, water,sustainable and affordable energy, shelter, basic sanitation, education, infrastructure,health and jobs with decent working conditions for the poor are central issues forsustainable development, as these are fundamental rights for everyone. In this regard, thevital role of women in achieving sustainable development needs to be underlined.A key role of the private sectorThrough (fair) trade, investment, public-private partnerships and research andinnovation, the private sector and civil society play key roles in delivering green growthand promoting sustainable consumption and production, inter alia through corporatesocial responsibility and technology diffusion. Private sector activities involvingpromoting and adopting a sustainable business model in their supply chain and includingenvironmental and social concerns in their investment decisions, will make a concretecontribution to a green economy roadmap. The OECD Guidelines for MultinationalEnterprises and the global framework for social responsibility, the Guiding Principles onBusiness and Human Rights, the Global Compact 10 Principles, the ISO 26000 standardon social responsibility and the Global Reporting Initiative are important tools in thisrespect that should be recalled and used in the Rio follow-up by the private sector.Further openingup markets for sustainably produced goods and services would boosttrade in key technologies. The prospects of a global market, rather than regional or localmarkets, would also strengthen incentives for firms to invest in R&D.

Proposals for operational outcomes: elements of a green economy roadmapIn order to give renewed impetus to sustainable development, Rio+20 needs to agree ona shared vision for change that can help to put the world on track towards sustainabledevelopment and is able to deliver results within agreed time frames. The mainoperational outcomes of Rio+20 should include a green economy roadmap withdeadlines for specific goals, objectives and actions at the international level as asignificant contribution to sustainable development and poverty eradication.For the green economy roadmap, the EU proposes a number of actions as outlined in thisdocument. This includes a capacity development scheme for voluntary country-specificand, where appropriate, region and sector-specific actions and a limited number of cross-cutting and thematic international actions that contribute to a green economy in thecontext of sustainable development and poverty eradication in a specific area.At Rio+20, the acknowledgement and encouragement of voluntary nationalcommitments and actions by State actors as well as stakeholders to achieve a greeneconomy in the context of sustainable development and poverty eradication should alsotake place as to ensure a bottom-up approach and the shaping of innovative partnerships.The proposals made are not meant to be final proposals; they should rather be consideredas a contribution to the international dialogue on the outcomes of the Rio+20conference. The EU and its Member States are interested in sharing and exchangingideas and look forward to further suggestions on the outcomes of the conference.Proposals for cross-cutting actions

Measuring progress - models and indicatorsDeliverables12.Further develop and strengthen indicators complementing GDP that integrateeconomic, social and environmental dimensions in a balanced manner.•Such an approach should include the selection of headline indicators reflectingseveral aspects of sustainable development (e.g. a “dashboard” of indicators).•Indicators for sustainable development which have been elaborated since 1992should be revised and validated through a participatory process of peer review andpublic discussion including different stakeholders. Specific indicators could be usedin conjunction with goals, if these were to be decided at Rio+20. To implement workon indicators, support needs to be given to the on-going UN process of establishingenvironmental accounts.Provide global outlook and assessments on energy, water, food and other resourceareas, based on a partnership of international and UN organisations.•The aim is to publish a new World Resources Outlook [by 2015], akin to the firstIPCC report and building on other relevant reports. This would consider the linksbetween natural resources and climate change, and help assess global, national andsub-national needs for the green economy in the context of sustainable developmentand poverty eradication. Such a partnership should build on and extend the work ofthe UNEP Resource Panel.

Rationale14.To accelerate and broaden the world-wide transition to a green economy that promotessustainable development and contributes to poverty eradication, goals may be developedand set at different levels. Such goals would require measurable and steerable indicators.For the further development of sustainable development indicators, existing initiativesshould be analyzed and built upon. Indicators should be developed in keeping with thecommitments made by the international community in Agenda 21 and the JPoI.Aiming at a set of indicators is in line with ongoing initiatives. The commitment of CBDParties in Nagoya in 2010 to incorporate the value of biological diversity into nationalaccounting and reporting systems provides an impetus and rationale for actions aimed atbetter integration of natural resources and ecosystem services into planning and poverty-eradication strategies. In addition, extensive international work has been conducted inrecent years on measuring progress and wellbeing, including the deliberations by theOECD, Stiglitz Commission and many others.Any new metrics need to add empirically sound value to the ongoing discussion andshould be proportionate, reasonable and affordable and take into account existing workand data availability. To assure compatibility, differentiated benchmarks should bedeveloped at international level according to countries' development priorities.

Rationale18.SCP patterns are key driving forces in achieving a just transition to green economiesworldwide in a context of sustainable development and poverty eradication, and inpromoting competitive, inclusive economies delivering full and productive employmentand decent work for all and fostering efficient social protection systems.The Johannesburg Plan of Implementation called for the development of a 10 YFP insupport of regional and national initiatives to accelerate the shift towards SCP in order topromote social and economic development within the carrying capacity of ecosystems.Current unsustainable patterns of consumption and production put a heavy stress onecosystems and on critical life-support systems, and impact on the quality of life andsocial well-being.Since Rio, substantial efforts have been made by governments and major groups topromote SCP patterns in all countries, and a number of developed countries have beentaking the lead in accordance with the principle of “common but differentiatedresponsibilities” (CBDR). All these efforts have created new economic opportunities inboth developed and developing countries which can be drawn upon.

Capacity development schemeDeliverable23.Establish a capacity development scheme - with input from the UN system,International Financial Institutions, bilateral and multilateral donors and theprivate sector - to provide country-specific advice, and, where appropriate, regionand sector-specific advice to all interested countries on the transformation to agreen economy in the context of sustainable development and poverty eradicationand to assist them in accessing available funds-In the spirit of the bottom-up approach, it would be up to the interestedcountries themselves to specify the policy areas to focus on, based on theirnational priorities and institutional arrangements and respecting nationaldifferences.This capacity-development scheme would rely on enhanced coordinationbetween existing structures and a more efficient, better-coordinated use ofexisting resources. The task of improving coordination between existingstructures would be mandated to those reformed and strengthened IFSDstructures decided on at Rio+20.A coherent approach would be facilitated, taking into account, inter alia, theMDGs Acceleration Framework and the ongoing work on poverty-reductionstrategies and national sustainable development strategies. The work on theLow Carbon Development Strategies and Plans and national strategies formitigation and adaptation actions (NAMAs) will be an essential component ofthis effort. Furthermore, green economy capacity development should go handin hand with efforts to foster good governance and anticorruption policy.In order to enable interested countries to choose from a menu of possibleactions and best practices, a toolbox or best-practice guide could be compiled,providing information about appropriate legal, economic and other instrumentsand policies designed to help all key actors accelerate the transition to a greeneconomy. This will also enable the sharing of national and regional experienceof green economy policies. Management of natural resources should build ontransparency and accountability, taking into consideration people in povertyand marginalised groups.An ambitious but realistic timeframe for each country seeking advice wouldhelp with implementation. For example, all interested countries should bematched to the actors most appropriate to provide the country-specific adviceand should have received such advice by 20XX (date to be specified). Theessential implementation steps should be completed by 20XX (date to bespecified).

Rationale24.At present, the support provided by the UN system, International Financial Institutions,bilateral and multilateral donors and the private sector is not sufficiently coordinated toeffectively accelerate the worldwide transition to a green economy in the context ofsustainable development and poverty eradication. A stronger, more efficient and better-integrated multilateral architecture for sustainable development is needed in order toundertake this coordination effort, in line with what Delivering As One is promotingwithin the UN. The scheme described above, implemented by reformed andstrengthened IFSD structures, would enable the UN system to deliver coordinated,demand-driven advice effectively and thereby drive substantial change.

Research and scientific cooperationDeliverables25.Establish a mechanism for international research cooperation on major sustainabledevelopment challenges.The mechanism would aim to provide a robust knowledge base on sustainabledevelopment issues, including the basis of measurement. It would provide regularreporting based on the latest knowledge of the scientific community. The mechanismwould build on and work in synergy with existing scientific panels and bodies. Workshould start by 2013. In the longer term the mechanism could promote research andinnovation programmes in different sectors, jointly with the private sector and otheractors.Strengthen the development and implementation of GEOSS to include sustainabledevelopment aspectsStarting in 2013, develop a long term strategy for the second implementation phase ofGEOSS (2015-2025) that would review and reinforce those elements relevant tosustainable development and create linkages across GEOSS's social benefit areas.

Rationale27.Unprecedented levels of scientific and technological cooperation are needed toovercome the major global challenges of the 21st century. Much information isavailable, but it is fragmented, and there is a need for a mechanism to systematicallycollect and process existing knowledge into authoritative and comprehensive reports onkey sustainable development and green economy issues. This knowledge should bemade freely available to the scientific community and policy makers, businesses and thepublic at large.GEOSS, Global Earth Observation System of Systems, was founded as a follow-up toRio+10. It is an example of how research cooperation has already substantiallyprogressed towards meeting the needs for long-term global information as a basis fordecision-making. GEOSS combines national, regional and global earth observation dataand infrastructures to build global datasets necessary to understand and predict thefunctioning of the earth systems. In the future, there is an opportunity to channelGEOSS information and data to support sustainable development decision making.

Innovative finance and subsidiesDeliverables29.Launch an international process to promote the role of innovative and privateinstruments of finance, including by highlighting their importance in areas such asclimate change and biodiversity, and stress the role of the Leading Group onInnovative Financing for Development.Ensure commitments to gradually eliminate subsidies that have considerablenegative effects on the environment and are incompatible with sustainabledevelopment, complemented with measures to protect poor and vulnerable groups,inter alia by expansion of existing G20 and APEC commitments regarding therationalization and phasing out of inefficient fossil fuel subsidies in the mediumterm to all UN Member States and timely implementation of the strategic goal andtargets on subsidies harmful to biodiversity set out in “The Strategic Plan forBiodiversity 2011-2020” decided in Nagoya 2010.

Rationale31.Innovative instruments of finance are likely to play a far more prominent role ininternational financing for development in the near future. In December 2010UN Resolution A/RES/65/146 was adopted; it stressed that innovative mechanisms offinancing can make a positive contribution in assisting developing countries to mobiliseadditional resources for development on a stable, predictable and voluntary basis.In the area of climate change, emissions-trading schemes or levies on internationalaviation and maritime transport are examples of pricing carbon emissions. The Report ofthe Secretary-General's High-level Advisory Group on Climate Change Financing (UNAGF) and the G-20 report on mobilizing climate finance may be flagged as a referencein this respect. In the area of biodiversity, innovative financial mechanisms also have animportant role to play, as is reflected in CBD COP 10 decisions for instance.A recent study by the OECD found that removing consumer subsidies for energy overthe next decade would reduce global greenhouse gases emissions by over 10 per cent in2050.Proposals for actions in specific areas

Continuing commitment and support to accelerate access to sanitation and safedrinking water for all (MDG7) within reasonable timeframes, as well as otherwater-dependent MDGs.Proposing a new commitment to reduce water pollution from households,industrial and agricultural sources and promote water efficiency and the use ofwastewater as a resource, particularly in expanding urban and peri-urban areas.Building on international partnerships on water and sanitation (such as the EUwater initiative) and reinforcing the involvement of economic actors as well asparticipation of stakeholders, including people in poverty, marginalized groupsand in particular women, who play a central role in water management at locallevel.Scaling up investments and developing innovative financing mechanisms inthe areas of water resources and ecosystems, sanitation infrastructure, waterpolicy reform, prevention of water-related risks due to global changes, and theuptake of relevant new technologies to improve resource efficiency.

Rationale36.By 2030, in a business-as-usual scenario, humanity's demand for water could outstripsupply by as much as 40 percent. This could cause increasing public health costs andcould hinder economic development, lead to social and geopolitical tensions and causelasting environmental damage. The world lags seriously behind in meeting the MDGtarget for sanitation. Water and sanitation are also closely linked to all other MDGsespecially in poverty and hunger reduction and access to energy and health, all of whichrequire water and the development of the water sector.Pressures on natural resources are challenging the effectiveness of conventional planningand decision-making. Trying to meet demand through single-sector approaches inresponse to what are inherently interlinked processes limits our ability to provide basicwater, food and energy services to the poorest. New approaches are needed to addressinter-dependencies across the water, energy and food sectors.

Rationale42.Today, over one billion people live in hunger and 2 billion people have a chronic lack ofnutrient-rich food. The world population will grow to 9 billion people by 2050 and foodconsumption patterns in emerging economies are changing fast. According to the FAO,food production and productivity have to increase by about 50% or more on the existingland area. The efforts must focus on enlarging the sustainable agricultural productioncapacity and increasing the quality of food.For the promotion of a high-production, sustainable agriculture, it is necessary that allstakeholders in the agri-food chain cooperate to improve access to local and globalagri-food markets for farmers, with special attention to women. Business, primaryproducers, governments, traders, retailers and consumers each have differentpossibilities and responsibilities which need to be pooled in order to achieve sustainableagriculture and food security. Multi-stakeholder initiatives are best practices whichfacilitate sustainable agriculture through dialogue between the relevant stakeholders inthe agri-food chain. These initiatives promote more equitable investment contracts aspart of more sustainable business models. While the EU recognizes that private sectorinvolvement and investment (by small holders as well as large entities) are essential toimprove food security and support responsible investments, safeguards againstundesirable social and ecological impacts of investments are also necessary.It is however important to bear in mind that, according to UNEP (2009), enough food for10 billion people is already produced. The problem is that half of this food is spoiled orthrown away as garbage. The raw material and food produced is thus harvested andconsumed in an inefficient way and distributed unequally. In addition to high-productionagri-food-chains it is important to give attention to more efficient and equal consumptionof food and raw materials.

48. The 2030 global targets proposed under the SE4ALL Initiative are likely to form thebasis of a new energy partnership between developed and developing countries.However, more discussion is needed internationally on the definition of modern energyservices, as well as on the global CO2 emissions likely with such targets.49.In this context, continued development and dissemination of sustainable energytechnologies has an important role to play, while at the same time fostering synergieswith international efforts and actions to combat climate change. Renewable energy andenergy efficiency have the potential to contribute to social and economic development,ensure security of supply as well as to mitigate climate change and provideenvironmental and health benefitsExisting mechanisms for technology transfer that could be further developed andimproved are for instance the new Technology Mechanism as decided in Cancun andIRENA.

Promote public-private partnerships and strengthen dialogue and informationflow between science and practice along the whole value chain. This wouldfocus on innovation in the field of new forest-based products and responsibilityfor forest management that takes climate change, biodiversity and other globalchallenges, (such as water scarcity, poverty, hunger, and employment) intoaccount. Step up efforts to address gaps in valuation of forest goods andservices and to mainstream forest values in national policy making processes.Ensure transparency of value chains and markets for bio-based forest productsand services through the enhanced use of certification systems and schemes forimproved market access and consumer acceptance.Promote benefits for people through setting up legal and policy frameworks forthe participation of forest rights holders groups and other stakeholders indecision- making, and in the design of benefit sharing mechanisms.

Rationale54.Forests provide a variety of goods and services that support human well-being andpoverty reduction, contribute to long-term social and economic development, and reduceenvironmental risks and ecological scarcities. They provide income and subsistence tohundreds of millions of people. Over 1.6 billion people depend on forest goods andservices for subsistence. Sustainable Forest Management is an essential dimension of thegreen economy of many tropical countries, improving livelihoods and food security,eradicating poverty and strengthening the resilience of forest ecosystems.The Global Objectives on Forests, adopted at the UNFF session in 2006, should beimportant guiding principles in partnerships that discourage deforestation and safeguardforest ownership and user rights, especially for poor, forest-dependent communities andindigenous populations. The UNEP Green Economy Report highlights the need forfurther action on sustainable forest management, protected forests, payments forecosystem services (PES and REDD+), reducing deforestation, recreation, forestcertification, afforestation, agri-forestry and good governance and policy-making.

Rationale58.The global dimension of soil degradation needs the be acknowledged internationally,because protecting, restoring and managing soils has an effect on biodiversity,forests, climate change, and thus the quality of soil can have an underlying influenceon the ability to achieve MDGs targets.The policy response to date in many cases has been limited to national actions, bylaws on soils and national programmes and policies: the UNCCD is the only existingnormative framework for soil and sustainable land management, providing thosecountries which are parties with a common instrument and a coordinated globalresponse to these issues.The UNCCD recognizes the needs of the most vulnerable populations and thepoorest countries and can help find the tools to make land use in agriculture, energyand forestry sustainable and to achieve food security.The Global Soil Partnership has the objective of addressing soil and land degradationat global level by improving global soil governance, soil data collection, validation,reporting and monitoring; establishing guidelines and indicators, and promotingtargeted soil research. The ELD initiative aims to carry out a comprehensiveassessment of land degradation that looks at both the costs of failing to preventfurther land degradation and the economic benefits of addressing it throughsustainable land management policies.

Promote a holistic and integrated approach to the governance of oceans, seas andcoasts by all States including through the development of cross-sectoral policy tools.Such an approach should include conservation and management measures andaddress cumulative environmental impacts, in areas within and beyond nationaljurisdiction, in a way that is coherent, compatible and without prejudice to therights and obligations of all States under UNCLOS.Develop a global action plan to combat marine litter and pollution.Recognize the significant economic, social and environmental contribution of coralreefs to island and coastal States, including by promoting regional cooperation onthe model of the Coral Triangle Initiative (CTI), and encouraging theInternational Coral Reef Initiative (ICRI).

Rationale68.Marine ecosystems are central to human well-being as a source of several importantecosystem services and the sustainable management of oceans and seas, includingsustainable fisheries, is essential to achieve the goals of a "blue" economy in terms ofsustainable economic growth, poverty eradication and job creation with decent workingconditions. However, as economic activity increases in the oceans, pressures on coastaland marine ecosystems also increase, thus calling for an integrated, eco-system basedmanagement of human activities. An adequate prevention strategy is needed to counterthe vulnerability of coastal States to the negative impacts of incidents directly related tomaritime and coastal activities.UNCLOS is the legal framework regulating all human activities in the oceans but someStates are still not parties to this Convention. A new implementing agreement forUNCLOS is necessary to operationalize the provisions in UNCLOS with regard to theconservation and sustainable use of marine biodiversity in areas beyond nationaljurisdiction, in particular questions on marine genetic resources, marine protected areasand environmental impact assessments. There is also a need to take forward the RegularProcess for global reporting and assessment of the state of the marine environment,which was agreed on at the WSSD and is now being gradually implemented by the UNsystem. Ensuring the sustainable management of the oceans, seas and coasts requiresreinforced application of an ecosystem-based approach supported by adequate tools towork across different sectoral policies affecting the oceans, seas and coasts. Theincreasing threats of marine pollution and litter require a global answer.Coral reefs are essential to Small Island Developing States (SIDS) and several coastalcountries. They provide direct economic benefits (fisheries, tourism, biodiversity),contribute to natural-disaster protection, sustainable coastal management, and are a richand unique ecosystem, directly threatened by climate change, with high social andcultural value. Regional cooperation on the basis of the Regional Seas Convention is therelevant level for promoting best governance and mobilizing resources and commitmentsby State and non-State actors as shown by CTI. Created in 1994, ICRI is recognized(UNGA 2010 resolution on coral reefs) as the leading international initiative on coralreefs advocacy, uniting both developed and developing countries which are co-chairingit.

FisheriesDeliverables71.Confirm existing commitments and step up all actions envisaged underparagraph 31 of the JPOI to achieve sustainable fisheriesin particular theuniversal adoption of the UN Fish Stocks Agreement (UNFSA).This includes:restoring and maintaining stocks at levels that can produce Maximum Sustainable Yield,ratification of the UN Fish Stocks Agreement,adoption and implementation of modernfisheries management principles such as the ecosystem and precautionary approaches aswell as the need to improve scientific knowledge in order to base measures on the bestavailable science,improved cooperation between States including through effectiveRegional Fisheries Management Organisations and other Regional Conventions, thereduction of fishing overcapacityand the reduction of significant adverse impacts onthreatened species and vulnerable ecosystems.Eliminate illegal, unreported and unregulated (IUU) fishing by developing acommon approach to combat it and by adopting and implementing effective toolsincluding through the ratification of the FAO Agreement on Port State MeasuresAgreement and other relevant international agreements.

Rationale73.Despite targets previously agreed at Johannesburg and the adoption of measures byStates and Regional Fisheries Management Bodies, the status of global fish stocks asreported by the FAO has continued to deteriorate. IUU fishing accounts for a largeportion of the catch for some species and contributes to the failure of management andconservation measures. It penalises fishermen who play by the rules by giving an unfairadvantage to those who ignore rules. The FAO Agreement complements the duties offlag States to ensure that their vessels do not participate in IUU fishing, and aims toblock the movement of IUU-caught fish into ports and onto national and internationalmarkets.Currently, together with the EU, only three States have ratified the FAOAgreement, which requires 25 parties to the Agreement for entry into force.

Establish in this context an International Partnership amongst governments,international organisations, NGOs, financial actors and private companies to shareand promote best practices relating to 'Investing in Natural Capital'.Initiativesunder this heading would address the following key issues:--measuring natural capital (statistics and trends, indicators, research anddevelopment, valuation of ecosystem services);integrating physical and monetary natural capital values in accounting and reportingsystems at national and international level (e.g. System of Environmental andEconomic Accounting (SEEA), ecosystem accounting, economic and socialprogress reports, accounting and reporting rules for businesses);promoting incentives and policies to encourage investment in natural capital(market-based instruments and innovative financing instruments for ecosystemprotection and restoration, promoting business models that integrate risks andopportunities relating to biodiversity and ecosystem services).

Rationale76. The study on the Economics of Ecosystems and Biodiversity (TEEB) has demonstratedthe strong links between the protection and enhancement of biodiversity and ecosystemson the one hand and economic opportunities and poverty alleviation on the other.Healthy ecosystems provide materials vital to rural livelihoods and increase theresilience of communities to climate change as well as to water and food insecurity.Progress in this area requires the valuation of biodiversity and ecosystem services andthe integration of these values into policies, decision-making and economic processes.Currently, the value of natural capital is not fully reflected either in statistics andaccounts or in markets and policies. Opportunities for investing in natural capital are notseized, even when they could provide prosperity and jobs with decent workingconditions.77. There are a number of national and international initiatives relating to the specificindividual steps needed to promote investment in natural capital including TEEB and theWorld Bank's "Wealth Accounting and Valuation of Ecosystem Services" (WAVES).Specific activities to be undertaken under IPBES may also be of relevance in this context.A new impetus in Rio+20 would help to advance and synthesise these initiatives andpromote best practices in developed and developing countries.

ChemicalsDeliverables78.Strengthening and building on the Strategic Approach to International ChemicalsManagement (SAICM), to step up efforts towards a more robust, coherent,effective and efficient international regime for chemicals throughout their lifecycle.Taking into account increasing and shifting global production and use of chemicals aswell as trade in products containing chemicals, the WSSD commitments on chemicalmanagement should be strengthened, and their implementation better monitored, in orderto reflect the developing knowledge base as well as new policy approaches recognisingthe need for greater transparency and industry responsibility. Further internationalefforts should build on and strengthen the multi-sector, multi-stakeholder dimension ofSAICM, and further develop and broaden ongoing efforts to increase coordination andcooperation within the chemicals and waste cluster, ensuring that hazardous substancesthat have been identified as being of global concern can be addressed rapidly throughagreed processes. Sustainable and adequate long-term funding will be important. In thisconnection, the EU and its Member States will give consideration to UNEP'sforthcoming proposals on financing to assist developing countries with sound chemicaland waste management and seeks an integrated approach that combines nationallymainstreaming such management, including in national development strategies,involving the private sector and providing external support for the incremental costs ofachieving global environmental benefits.79.Further develop and broaden ongoing efforts to increase synergies andcoordination and cooperation within the chemicals cluster and the waste cluster.Rationale80. Compared to the ambitions established at the WSSD, progress has been uneven andinsufficient, making it likely that the WSSD chemicals target will be missed.Information on chemical hazards remains incomplete and scattered, and the internationalsystem fragmented.81. Many developing countries have a chronic lack of capacity for sound management ofchemicals. Unsound management of chemicals throughout their lifecycle can lead to thecontamination of air, water and soil, leading to increased human exposure and associatedrisks to health and the ability to work and make a living. Chemical pollution alsonegatively affects the natural resource base which is fundamental to economicdevelopment. Chemical management is closely related to waste handling, since reuseand recycling become difficult if products contain hazardous chemicals.

Sustainable management of materials and waste

Deliverables

83.Improve the quality and reliability of waste-related data and indicators for betterinventories, monitoring, implementation, policy development and general access toinformation.84.Promote public - private partnerships aiming to enhance capacity and technologyfor environmentally sound waste management, based on international standards, aswell as to mobilize financial resources and investment, while ensuring coherenceand avoiding duplication with already existing partnerships and other relevantwork at international level.Rationale85. Sustainable management of materials and waste is expected to generate substantialeconomic, environmental and social benefits, which include natural resource and energysaving, creation of new businesses and jobs, biological treatment such as digestion orcompost production supporting agriculture, energy production from non-recyclablewaste, reduced greenhouse gas emissions, contributions to equity and povertyeradication. Sustainable recycling requires improved information on the presence ofchemicals in products during the entire life cycle in order to enable risk management andfor the consumers to choose greener products and a more sustainable lifestyle. Improvedhealth, avoidance of health costs, avoidance of water and soil contamination, and theconsequent cost of alternative water supply and of soil remediation are also importantbenefits. Greening the waste sector implies: avoidance of waste through sustainablecommunity practices; the eco-conception and the minimisation of waste generationthrough the lifecycle approach; design for recycling remanufacturing, reuse or recyclingof waste into usable products, then recovery of materials and energy from non-recyclable waste; treating any remaining unusable waste in an environmentally friendlyor in the least damaging way; and integrating informal waste collection and recyclinginto formal, better-regulated systems, following environmental guidance, labour-protection measures, as well as the recognition of women’s needs and roles in “greenjob” creation programmes. It is essential to move towards a recycling society, thatproductively uses what is now discarded, through environmentally sound effective andefficient management of waste.Sustainable urban developmentDeliverables86.Mobilise a renewed process at local level in order to ensure that urban developmentis sustainable by integrating in the work of the whole UN system the agenda forsustainable urban development as well as the good practices, lessons learned andpartnerships implemented by cities.87.Promote an integrated and holistic approach to building sustainable cities88.Support the scaling up of successful experiences as a means to achieve sustainabledevelopment and eradicate poverty globally.

Rationale89. It has been reported that cities accommodate more than half of the world’s populationand that they are experiencing rapid spatial expansion leading to the emergence of mega-cities, mega-urban regions and increasing spatial and social fragmentation, poverty andinequality. Furthermore, globalization, climate change, rising urban insecurity andcrime, increasing destruction of human settlements by disasters and conflicts of naturalor human origin, and rising informality within cities all pose major challenges thatshould be the object of renewed global attention.90. A just transition to a green economy therefore cannot be achieved without a stronginvolvement of cities. They have several means of action arising from theirresponsibilities in the fields of urban governance, transport, city planning and socialservices. Cities create added value (wealth) and increase investment capacity, which isessential for changing production processes.91. Urban governance is key for an effective response to local needs but also for solutions tosocial, economic and environmental concerns at the global level.92. The setting up of partnerships between local officials and economic actors optimizesfunding and makes it possible to better use the opportunities offered by the action plansto combat climate change with a view to economic development and social concerns.

III. INSTITUTIONAL FRAMEWORK FOR SUSTAINABLEDEVELOPMENTIntroduction / background1.Governance structures are crucial in helping to deliver sustainable development, greenour economies and eradicate poverty. However,current arrangements forSustainable Development Governance are not effectively responding to thechallenges before us.Despite the commonly recognized inter-linkages between poverty, natural resource useand ecosystem degradation, fragmentation, lack of co-ordination between UN agenciesand the international financial institutions (IFIs), and silo-type responses still occur . Atthe same time, effective mechanisms for monitoring or ensuring implementation ofagreed commitments need to be enhanced. Current governance arrangements are verycomplex but nevertheless often lack coherence. Over the last 4 decades, well over onehundred multilateral environmental agreements (MEAs) have been concluded andaround 50 UN bodies have the environment as part of their remit. They are alsoresource- heavy: it was estimated by the UN Joint Inspection Unit that the cost of theInternational Environmental Governance (IEG) system in 2006 was $US 1.6bn.Against this background, it is clear that governance arrangements in all threepillars of sustainable development need to be strengthened, better coordinated andmade more coherent. We need to ensure that the economic, social andenvironmental dimensions work closely together. The Rio+20 Conference providesa unique opportunity for forward- looking IFSD discussions contributing to betterimplementation and greater integration of sustainable development at all levelsand in all countries.The recent economic and financial crisis offers an opportunity for global collectiverethinking to facilitate a transition to a green economy, including improving institutionaltools to accelerate the implementation of sustainable development.The EU and its Member States have identified the followingbroader considerationsand key functions we expect to see reflected in and performed by an improvedinstitutional framework for sustainable development post Rio+20 and which arerelevant for consideration at all levels. Improvements are needed in--political leadership and direction; high-level visibility and political clout forsustainable development topicscoherence and co-ordination, by taking a systemic approach to interlinked issueswith environment, social and economic impacts, such as food security, climatechange, unemployment, social protection, competitiveness etc; and aninterdisciplinary approach to policy analysis, i.e. by applying balanced andcoherent assessment techniques, by ensuring that reports on cross-cutting issuesare produced collaboratively and presented by institutions jointly; and throughsupport of joint efforts in areas such as outreach and consultation,

effectiveness and efficiency, i.e. build on existing institutions, improve synergiesbetween existing processes, avoid duplication, eliminate unnecessary overlaps,maximize effective use of financial resources, reduce administrative burdens,avoid proliferation of sub-groups and meetings etc;transparency and accountability i.e. strengthen the co-operation and communicationbetween institutions and stakeholders.participation, i.e. ensure better utilization of the expertise and resources of allstakeholders including non-state actors (from civil society and the private sector)and especially women;flexibility and risk management, i.e. improved capacity for quick responsiveness andevidence-based analysis– especially in light of newly emerging issues and inperiods of crisis.decision-making through an efficient mix of regulatory and market-basedinstruments,scientific evidence base through more integrated and inter-disciplinary scientificresearch and reports.progress monitoring and review i.e. clear goals and objective setting, capacitytransfer, knowledge building etc.

It will be important, as a general principle, that theoptions that are being put forwardare practical and take into account financial, structural and legal implications.New arrangements should make clear improvements upon existing arrangements,enable more efficient use of existing resources and funds, andbe able to promotework on sustainable development metrics.Implementation should be streamlined into the various options for reform,inparticular by facilitating the implementation of national and sub-national sustainabledevelopment policies and strategies through policy exchange or peer reviews to promoteimplementation of national strategies for sustainable development, as well as practicaland action-oriented guidance and advice and capacity building by the UN System andby bilateral, and multilateral donors. The role of business and civil society in theimplementation phase is key, and can be promoted by establishing partnerships andnetworking platforms.There is a strongfunctional link between IFSDand the other theme of Rio+20 “aGreen Economy in the context of sustainable development and povertyeradication".In addition to effective rules and regulations, and adherence to them ,properly functioning global markets also need effective multilateral institutions. Thestrengthening of international governance structures for sustainable development willhelp the transition to a green economy. Long-term economic resilience is dependent onsustainable use of natural resources. We need to reflect on which UN agencies andbodies could best support, and by what means , the transition towards a green economyin the context of sustainable development and poverty eradication in compliance withthe framework of UN reform.

Global Sustainable Development Governance9.Reinforcing the architecture for sustainable development governance atthe global levelwill require, in particular, strengthening of and better co-ordination andcoherence between the UN organizations responsible for sustainable developmentin order to ensure better linkages between the three pillars and to improveimplementation of existing commitments. This will also require reinforcing andmainstreaming environmental issues in a balanced manner.During the preparatory process for Rio+20 a number of reform options have beensuggested. These include, inter alia, reform of the United Nations General Assembly,the Economic and Social Council (ECOSOC), the Commission on SustainableDevelopment (CSD) and the possible establishment of a Sustainable DevelopmentCouncil.The position of the EU and its Member States on all these reform optionsremains open and we welcome the views of others on how to best achieve anambitious outcome for IFSD at Rio+20.The outcome of the joint ExecutiveCommittee on Economic and Social Affairs (EC-ESA) study on IFSD will serve as animportant source of information for comparing the various options, for assessingpossible interrelatedness and interdependence between options and for evaluating theextent to which options would fulfil the required functions.Governance aspects of the economic and social pillars of sustainable development mustbe taken into account as well.There is a need to ensure strong involvement in andcoherence between the activities of the International Financial Institutions,especially the World Bank Group and the International Monetary Fund, the regionaldevelopment banks, G20, and the World Trade Organization in regulating global trade.Initial/preliminary considerations by the EU and its Member Stateson some of theoptions put forward for global sustainable development governance reforms are set outbelow.These options are not mutually exclusive and could be pursued as acombination of options.As the main deliberative organ of the UN, theUN General Assemblyprovides aunique forum for multilateral discussion and political guidance at the highest level.The main aim should be to ensure that sustainable development issues aremainstreamed on its agenda, thereby effectively providing overall politicaldirection to the implementation and review of the UN’s sustainable developmentwork. Consideration could be given to the practice of scheduling high-levelmeetings and thematic debates that are interactive and inclusive in nature asimportant tools for facilitating in-depth discussion on current issues of criticalimportance.

ECOSOChas a pivotal role to play in ensuring coherence, coordination andimplementation in the area of sustainable development through its mandate on 2of the three pillars, high-level coordination with the UN specialized agencies,funds and programmes, its link with the Bretton Woods Institutions and itsoversight role vis-à-vis the functional commissions. Different options could beconsidered for strengthening the way it performs this function, including:-Using the coordination segment of ECOSOC as an effective way ofstrengtheningintegration,monitoringimplementationofdecisions/resolutions on sustainable development, including those comingfrom its functional commissions, as well as fostering coherence andcoordination across the UN system. The ECOSOC Spring meetings “Specialhigh-level meeting of ECOSOC with the Bretton Woods institutions, theWorld Trade Organization and the United Nations Conference on Trade andDevelopment” provides an opportunity to build upon for strengthening thelink with the Financial Institutions and the UN System Chief ExecutivesBoard for Coordination (CEB);Using the ECOSOC operational activities segment to promote mainstreamingof decisions/resolutions on sustainable development into programmes of UNagencies and funds which would translate into concrete actions on theground;A possible revision of the roles and division of responsibilities of theECOSOC and the CSD as regards sustainable development.

20 years after theCommission for Sustainable Development(CSD) wascreated, there is broad agreement that the role of the CSD needs to be reviewed.As it stands, CSD no longer delivers a satisfactory dialogue with the governingbodies of implementing entities, is unable to support the incorporation ofdecisions into UN country-level assistance frameworks, and lacks the authority foran effective integration of the three pillars of sustainable development. Differentscenarios could be considered for improving the effectiveness, efficiency andflexibility of activities currently performed by the CSD, including:-Enhancing and strengthening the CSD by endowing it with a sharper, morefocused, balanced and responsive engagement with a more limited set ofissues, resulting in a more strategic and manageable approach, as well as anenhanced implementation of its decisions.Reorienting its role by focusing on the part of its mandate in support ofsustainable development partnerships and dialogue and removing its‘negotiation’ functionEnhancing the review dimension of the CSD by facilitating voluntary peerreview mechanisms for progress monitoring using best practice and/orestablishing linkages with regional level peer review mechanisms.Abolishing the CSD, and transferring those functions that should becontinued to another organ within the UN system.

Theestablishment of a Sustainable Development Council under the UNGAhas been highlighted as a way to improve the UN’s work on SustainableDevelopment. The key function of such a body could be to improve visibility ofSustainable Development topics. However, considerations about the possibleestablishment of a Sustainable Development Council must avoid any concrete orpotential overlap in the functions and mandates of existing organizations.ASpecial Envoy or Representative couldbe the high-level voice and advocatefor sustainable development with various policy makers at the national level andcould promote an integrated approach in the UN system and at country level.13.Another key aspect of a improved IFSD pertains tointeragency improvements.Policycoordination needs to be strengthened and the coordinating mechanisms such as theCEB, the UN Development Group (UNDG), the Environmental Management Group(EMG) and others made more effective in support of sustainable development. In orderto strengthen the integration of environmental issues into the activities of the variousUN organs, the EMG should become more closely linked to the CEB. This could beensured by, for example, integrating it into the CEB. In order to enhance ownership ofthe EMG, a rotating chairmanship could be considered.Fragmented support from the international system for national-level implementationshould be avoided. UN Country Teams need to improve their support for sustainabledevelopment implementation at the national level. The delivery of services needs tobecome more efficient and effective. Lessons learned from the “SystemWideCoherence”exercise and “Deliveringas One (DaO)”as well as from cross-sectoralapproaches such as the“Poverty and Environment Initiative”andUNAIDScanprovide valuable input for the discussions on IFSD. In this regard, the EU looksforward to the results of the independent evaluation of the “delivering as one” pilots, tobe presented in May 2012. The DaO model could be further developed to helpstrengthen sustainable development at the national level. Organizations engaged inpractical implementation, as well as governments where the UN is present on theground, are encouraged to come forward with and articulate observations that mayadvance the discussions on the IFSD.

Setting up system-wide responses would also entail creating activities that span all threedimensions of sustainable development and would thus ground IEG within the widerIFSD architecture.The EU and its Member States actively support the incremental improvements ofIEG that were identified in the Nairobi-Helsinki process and consider that theyshould be rigorously implemented. Our views are set out more fully in paragraph19. Furthermore, the EU and its Member States are convinced that, at the sametime, more ambitious and broader reform is necessary to respond to thefundamental problems of the current system. A key outcome of Rio+20 shouldtherefore include the upgrading of UNEP into a Specialized Agency for theEnvironment as part of the reform of IFSD, and our detailed views on this are setout in paragraph 20 below.With regard tosynergies among compatible MEAs,the EU and its Member Statesbelieve that the work on streamlining and reinforcing the MEA system needs to beaccelerated. While respecting the autonomy of different MEAs, there is much scope formaking their administration more effective through inter alia, coordination, cooperationand avoidance of duplication – thus creating a better platform for securing coherent andfocused political oversight and leadership, thereby freeing up resources for betterimplementation and for promoting favourable conditions for green growth. Suchsynergies could include cooperation and coherence with regard to financial aspects. Ifthe political will exists among Parties, the MEA system can be streamlined andreinforced. Rio+20 may provide the momentum for all of us to commit to and kick-startsuch reforms and strengthened synergies between MEA’s, for example:The EU and its Member States welcome the work already undertaken to improve theco-operation and co-ordination between thechemicals and waste clusterandconsider that more work in this area could be undertaken for, e.g., significantsteps towards further advancing cooperation and coordination between new andexisting instruments within the chemicals and waste cluster, where a future proofgovernance structure and an integrated approach to financing options need to bekey components.

We also welcome further efforts for enhancing synergies between thebiodiversity-related Conventions,international and regional agreements and other relevantbodies, which, without prejudice to their specific objectives or mandates, and witha view to, inter alia, considering joint activities and identifying areas for Party-driven collaboration regarding biodiversity, climate change, land degradation andecosystem based approaches, would support the transition to a green economy.We also note the need to strengthencoordination between the three ‘RioConventions’(the UN Framework Convention on Climate Change, the UNConvention on Biological Diversity, and the UN Convention to CombatDesertification) and promote joint activities for Party-driven collaboration onecosystem -based "win-win-win" solutions.20.The EU has over the years developed its thinking onIEG.The 2005 CouncilConclusions from EU Heads of State and Government support ‘theestablishment of aUN agency for the environment, based on UNEP, with a revised and strengthenedmandate, supported by stable, adequate and predictable financial contributions andoperating on an equal footing with other UN specialized agencies. This agency, basedin Nairobi, would make it possible to develop the environmental dimension ofsustainable development in an integrated and consistent manner, and wouldcooperate closely with multilateral agencies, each using its comparative advantages tobest effect.”TheEU view of a UN Specialised Agency for the environment is as follows:Pursuant to Articles 57 and 63 of the UN charter, a Specialised Agency of the UN (a“World Environment Organisation or “United Nations Environment Organisation”)would be established as the global body for the environment with its seat in Nairobi. Itwould be based on the models of some of the existing, medium-sized UN specialisedagencies such as the International Labour Organization (ILO), the WorldMeteorological Organization (WMO), or the World Intellectual Property Organization(WIPO).General objectiveIt would be recognized as the leader on matters relevant to the environment and wouldperform a coordination function with regard to other UN bodies. It would represent "theUN voice for the Environment", and be a designated body with a strong mandate so thatthe UN response to the outstanding issues in the area of environment reflects the size ofthe challenges.The added value of a Specialised Agency over an enhanced UNEP would be:an adequate position within the UN system to fulfil the tasks that governments have,in 1972, entrusted to a body too low in the UN family to exert its influence;.better positioning to help developing countries reinforce capacity and environmentalpolicies.Mandate and key functions of the Specialized AgencyThe Specialised Agency would:Be the designated agency of the United Nations system on environmental issues.Have a clear policy advice and guidance function as well as authority on assessmentand early warning on the global environment.Build strong links between science, policy and decision-making to supportevidence-based and coherent decision-making inside and outside the UN.

Offer specific capacity building and technical assistance to countries to assist in theprocess of implementing international environmental norms, standards, guidelines,or guidance. It would respect the principles of the Paris Declaration on AidEffectiveness and the Accra Agenda for Action, and be in line with the System-Wide Coherence and "Delivering as One" initiatives. It would also have to fullyrespect the Bali Strategic Plan (amended as necessary to take into consideration theestablishment of the Agency).This country support will pass via its regional centresnot own -country offices, and also through close institutional links with other UNbodies that would make it possible to work through existing institutions in theirefforts to achieve compliance and enforcement of environmental law, taking intoaccount the specific needs of developing countries. Although not a resident agency,an Agency would support UN Country Teams when developing the UN CountryAssessments and Development Assistance Frameworks.Promote the coherent implementation of the environmental dimension of sustainabledevelopment within the UN system by building on efficient coordinationmechanisms within UN system , such as the strengthened EMG.Identify and bring new and emerging global environmental issues to the politicalagenda so as to be responsive to challenges as they arise. For example, it is notenough to focus international action solely on climate change- related issues: swiftresponses are also needed to problems such as loss of biodiversity, land degradationand sound chemical and waste management, management of natural resources ordisaster -risk reduction.Develop global, regional and thematic environmental outlooks and contribute toenvironmental outlooks at the country level to support the transformation ofeconomies from the perspective of a sustainable development.Disseminate environmental information worldwide, raise awareness and mobilizepublic opinion on critical environmental issues. Achieve strong and visibledialogue/advocacy on environmental issues involving major companies and thebusiness world at large.Give guidance for better environmental performance by integrating normativeenvironmental policy into UN operational activities. In this context, provideregional level technical and technological support to focal-points pursuant to MEAs.Undertake efforts to improve efficiency and effectiveness of MEAs at national,regional and international levels.Enhance synergies among existing MEAs where this is feasible and desirable, asone way of making implementation more efficient and effective. Contribute toensuring that any new MEAs are truly synergistic and future- proof instruments.Facilitate the creation of synergies between the MEAs and other relevantinternational treaties.Provide support to MEA secretariats in technical, logistical and programmatic areasin a synergetic way. A well-resourced and fully -equipped "environment house"should be able to provide the professional services that Parties need to efficientlyimplement MEAs.Have a role in enhancing coherence and political oversight of global environmentalfinance.

Ensure an open political decision-making process and enhance transparency throughthe involvement of civil society and the private sector. Similarly, the matter ofgiving citizens a more powerful voice at global level should be addressed:reinforced governance structures are needed to make sure that the voice of citizensis heard in international, national and local decision- making. There are severalways to enable broad, innovative participation on the part of the variousstakeholders, and to move beyond the current model where civil society has limited,unsatisfactory opportunities to participate.FundingIts funding basis needs to be “adequate, predictable, and stable”. The Agency couldtherefore work inter alia with assessed contributions as one of its funding sourcesThe widening of the funding basis to include other sources is essential.No new funding structures would be set up as part of the creation of such anAgency.The agency would play a role in the necessary efforts to dovetail financial streamsfor the environment, including the GEF. It would continue to fulfil UNEP's existingmandate to provide policy guidance, and cooperate with the COPs of theConventions which are the competent bodies for the financial mechanisms of theConventions. This will be part of a better realignment of the multilateral policy -making and the international funding mechanisms.The Agency would be created through the transformation or upgrading of UNEP -so cost evolution can be followed and controlled gradually.The Agency would moreover provide cost savings if the administrative and financialfunctions for both some of the MEAs and the Agency are successfully streamlined.Relation with the MEAsResolving in a mutually supportive and balanced way the relationship between theSpecialised Agency and the MEAs is central to resolving the issue of the creation ofan Agency.The Agency would provide guidance and cooperate in this respect with the COPs ofthe Conventions.The legal autonomy of the conventions would be fully respected.Formulas would be worked out, without creating new structures, to closely associateMEAs with the Agency, their high- level presence at the decision making bodiesbeing one example.Multilevel SD governance: the role of regional, national, subnational and localauthorities22.The strengthening of IFSD needs to be addressed acrossmultiple levels of governance.Regional, national, sub-national and local- level institutionsare at the forefront whenit comes to dealing with the challenges and opportunities related to the implementationof sustainable development.Promoting effective institutions and appropriateframework conditions at these levels should be recognized as an indispensablecomplement to efforts aimed at strengthening IFSD at global level.Taking intoaccount lessons learned, proposals should build further on the valuable work that isalready taking place, notably with regard to the implementation of sustainabledevelopment policies and strategies (National Sustainable Development Strategies(NSDS)), Poverty Reduction Strategies (PRS), Local Agenda 21), the work of localgovernments and the work of intersectoral coordination structures.

Regional cooperation and South-South cooperationis a powerful tool for bridgingthe gap between the global and national levels of sustainable development decision-making and implementation. UN regional commissions have a role to play in facilitatingtechnical assistance, regional coordination, mobilizing financing and implementation.Overarchingsustainable development strategiesare key instruments for theimplementation of sustainable development commitments at regional, national or sub-national level. Rio should provide incentives to countries or regions which already havesuch strategies in place for updating the existing strategies and ensuring that all relevantline ministries and stakeholders are involved in this process. Countries without nationalsustainable development strategies or poverty reduction strategies in place could beprovided with the supportive measures (including mechanisms to secure public andprivate funding) necessary for developing and implementing the strategies that willallow them to tackle in a holistic manner the complex and interrelated economic,financial, environmental, climate and social crises and challenges.

The role of non-state actors25.One of the fundamental prerequisites for the achievement of sustainable development isbroad public participationin decision-making. The IFSD package, therefore, shouldinclude measures that encourage and facilitate an active and meaningful involvement ofall major groups and stakeholdersas central actors in both policy development andimplementation. Possible measures could include:The promotion of dynamicpartnershipsand flexible alliances aimed at ensuring anefficient and effective participation of major groups and stakeholders,acknowledging in particular the role of business and the private sector, non-governmental organizations and trade unions.Promoting and strengtheningnational Sustainable Development Councils(as setout in Agenda 21) composed of stakeholders from the different major groups thatare active in pushing forward the sustainable development agenda. Integrative andtrans-disciplinary in nature, Sustainable Development Councils can be seen as amodel for efficient and effective multi-stakeholder involvement.26.Similarly, reinforced governance structures are needed to make sure that the voice ofcitizensis heard in international, national and local decision -making.