CSD - steps in sun and shade.

Talks to decide the outcome of the June United Nations special session to review action since the Earth Summit in Rio concluded with some progress on economic, social and environmental issues, but there were many unresolved differences, especially on financing questions, between industrialized and developing countries.

Calling the talks "very difficult", Mostafa Tolba of Egypt, Chairman of the session of the United Nations Commission on Sustainable Development (CSD), where the negotiations were conducted, acknowledged at a closing press conference that many contentious issues were "left hanging" until the June meeting.

Important steps forward had been taken on international cooperation to conserve and protect freshwater supplies, encourage greater energy efficiency and ensure better management of oceans and coastal areas. The question of whether to begin negotiations for a legal convention on forests has yet to be agreed.

Assessing progress since Rio, Governments noted that some global trends appear positive. The growth in world population is slowing, food production is still rising, and the majority of people are living longer and healthier lives. Accelerated globalization of the world economy has benefitted some developing countries, but many, especially in Africa, continue to be marginalized. The number of people living in poverty has increased, and gaps between rich and poor have grown, both within and between countries.

Overall, the state of the global environment has continued to deteriorate, with rising levels of toxic pollution, greenhouse gas emissions and solid waste. Renewable resources, particularly freshwater, forests, topsoil and marine fish stocks, continue to be used at rates that are clearly unsustainable.

Environment and development groups participating in the Commission session saw the lack of concrete commitments as a serious setback. Speaking for the non-governmental organizations (NGOs) at a UN-sponsored press conference, Clif Curtis of Greenpeace International said that "we feel we are going backward, not forward, in addressing sustainable development". Considering the urgency of the situation, far too little was being done, and the talks so far "set the stage for a failure at the end of June."

On financing, the "Group of 77", representing 132 developing countries, pushed for donor countries to honour commitments taken in Rio to make available "new and additional" resources - beyond existing levels of official development assistance (ODA) - and environmental technologies at concessional prices. Although the Rio agreements and the draft document for adoption in June continue to affirm the target of 0.7 per cent of gross national product for ODA, the draft text also notes that ODA has "drastically declined" since Rio, from an average 0.34 per cent of GNP in 1992 to 0.27 per cent in 1995. Indicative of deep divisions, Northern and Southern countries disagreed on basic wording as to whether provisions on finance and technology transfer in Agenda 21 were "commitments" or "objectives". They did, however, agree to call for studies on the "root causes" of this decline and on policy approaches to reverse it.

Some donor countries stressed that larger flows of private foreign direct investment (FDI) have compensated for lower ODA. Developing countries noted that FDI benefits only a few countries and does not necessarily encourage sustainable development. The draft final document for June calls for studies and policies to attract private foreign capital and ensure that it promotes long-term sustainable productivity. It also calls for further work on domestic resource mobilization in developing countries.

Governments agreed to urge donor countries to provide new and additional resources through a "satisfactory replenishment" of the Global Environment Facility (GEF), the fund established just prior to Rio that channels grants to projects tackling certain environmental problems. Some NGOs had called for a commitment to double GEF funding from the current $2 billion covering a three-year period, but this did not gain support.

Although compromise positions were reached on these and other long-standing international economic issues, such as the impact on countries of external debt, the open split between industrialized and developing countries dimmed the "Rio spirit" of partnership.

"The situation is very much like the situation right before Rio," commented Joke Waller-Hunter, Director of the UN office that provides substantive support to the Commission. "All negotiations were related to a decision on finance." Mr. Tolba had said earlier in the week that what some perceived as a deadlock was merely firm positions taken as negotiating tactics by Governments, and he fully expected an agreement to be reached.

Among new initiatives, the European Union tabled a proposal for a tax on aviation fuel to provide funds for sustainable development, and the draft document calls for further studies by the United Nations system on innovative financing mechanisms. Some countries and NGOs expressed support for a new Intergovernmental Panel on Finance to spearhead negotiations, and for a proposal by Norway for Heads of State to hold a special meeting on finance issues, at the June session, with the heads of major financial institutions.

Progress on sectoral issues

In an important step, Governments urged in the draft final document that the highest priority be given to the serious problems of scarcity and pollution of freshwater supplies facing many regions. Among other recommendations, the draft calls for talks at next year's Commission session on a global strategy to address the impending crisis. A recent UN assessment study showed that two thirds of humanity will suffer from shortages of clean freshwater within 30 years unless action is taken.

On oceans, the draft document goes a step beyond Agenda 21 to state that there is an urgent need for Governments to prevent or eliminate overfishing, excess fishing capacity and wasteful fishing practices, and to consider the impact of government subsidies. This reflects growing international consensus in light of the Food and Agriculture Organization reports that 70 per cent of commercial fisheries are overfished or depleted.

Regarding forests, Governments left pending until June whether to begin negotiations for a legally binding instrument on forests, or to establish an Intergovernmental Forum on Forests to continue talks exploring this option and monitor action on over 100 recommendations for sustainable forest management made by an intergovernmental panel in February after two years of work. Among countries with large forest reserves, Canada, Malaysia and Russia favour a legal convention; Brazil wants to consider this question later, while the United States is opposed. Most environment groups oppose a new treaty because they feel that the several years of negotiation required would delay action needed immediately and existing agreements, such as the Biodiversity Convention, offer adequate protection for forests. Studies show that worldwide, forests continue to be cut and burned at alarming rates.

On climate change, setting the stage for the meeting in Kyoto this December of the parties to the climate change treaty, Governments could not agree on action needed. The European Union proposed a 15 per cent reduction in emissions of greenhouse gases below the 1990 level by the year 2010. The Alliance of Small Island States, concerned by the threat of rising sea levels, called for commitments to a 20-per cent reduction in carbon dioxide emissions below the 1990 level by the year 2005. The United States preferred wording urging Governments to adopt "the strongest possible agreement", including legally binding targets, at Kyoto, without specifying targets at this time. A menu of options was forwarded to the June session for further negotiation.

The draft document also calls for strengthening the Montreal Protocol for protection of the ozone layer and replenishing the fund to assist developing countries to shift to ozone-friendly technologies.

Concerning energy, many delegates raised the need for more sustainable patterns of production, distribution and consumption. Among other actions, the European Union proposed that Governments and the private sector be encouraged to adopt energy pricing better reflecting economic and environmental costs and benefits, and to reduce and gradually eliminate subsidies, but the "Group of 77" developing countries, the United States and some others opposed this. Proposals for intensive discussions on energy issues at a future Commission session or in an expert group were not resolved.

On transport policy, unresolved proposals called for accelerating the phase-out of leaded gasoline and promoting guidelines for eco-friendly transport and reduced vehicle emissions, preferably within the next 10 years.

How to improve eco-efficiency in energy and materials produced and consumed was a major theme of the talks. A proposal by the European Union to consider "Factor 10" - a goal of ten-fold improvement in productivity in the long term - with perhaps an intermediate goal of "Factor 4" - a four-fold improvement within the next two or three decades - was left unresolved until June. Also, the need for policies that promote sustainable tourism was raised higher on the international agenda for study at future sessions.

On institutional issues, Governments called for an enhanced role and adequate funding for a revitalized United Nations Environment Programme. The work programme for the Commission on Sustainable Development through the year 2002 was under discussion, but not completely resolved. It was agreed that the next review of implementation of Agenda 21 by the General Assembly would take place in 2002. Also, the Commission recommended that a review of implementation of the action plan adopted at the 1994 Barbados Conference on small island developing States be held at a two-day special session of the Assembly in September 1999.

To provide input from the major civil society groups involved in sustainable development, dialogue sessions were held during the April talks with representatives of business and industry, women, children and youth, farmers, trade unions, indigenous people, NGOs, scientists and local authorities, such as mayors. Each group's recommendations were forwarded to the Commission.