Connected world: Agreeing ambitious Sustainable Development Goals in 2015 - Environmental Audit Committee Contents


2  Embedding sustainable development across the goals

13. The BOND Beyond 2015 group, which is made up of over 100 organisations, have stated that the post-2015 process "creates a vital opportunity to bring development and environment concerns, approaches and solutions together within one integrated framework—one that can deliver mutually reinforcing progress in both areas."[33] Helen Dennis of Christian Aid told us "the three dimensions of sustainable development—economic, environment and social—should be adequately reflected, both across the targets but also within the goal headlines themselves."[34] She added

    Integration is clearly absolutely critical, given the twin challenges around extreme poverty but also we must ensure that inter-generational justice, sustainability, the eradication of poverty is not just a one-off event, that it is then sustained in the future and is not undermined by the impacts of disasters and climate change. [35]

Dominic White of WWF told us "We see some very well crafted goals [in the OWG report] in terms of the balance of the three dimensions within them, and you could look at the food goal or the water goal for examples of that perhaps. There is always more work to be done; it is not an exact science." [36] The Secretary General's synthesis report stated:

    All voices have called for a people-centred and planet-sensitive agenda to ensure human dignity, equality, environmental stewardship, healthy economies, freedom from want and fear, and a renewed global partnership for sustainable development. Tackling climate change and fostering sustainable development agendas are two mutually reinforcing sides of the same coin. [37]

Natural environment and climate change

14. The STEPS Centre told us "the goals should take into account existing scientific evidence regarding a 'safe operating space' in which development can proceed without jeopardising development opportunities for future generations. Inter-generational issues should therefore be central to the goals, and their implementation in the UK."[38] BOND Beyond 2015 called for environmental sustainability to be incorporated as "a 'green thread' that is considered and addressed in all goals".[39] DFID told us "The Government is committed to sustainable development, and ensuring that it is effectively integrated across the post-2015 agenda is a key priority for the UK". They wanted "to see a green thread of environmental sustainability and good stewardship of natural resources effectively integrated across the framework in key areas, such as food, water, energy and growth as these sectors are the key drivers of environmental degradation".[40] The notion of a 'green thread' echoes the phrase used by the Prime Minister about the importance of a 'golden thread' of

    conditions that enable open economies and open societies to thrive. These include the rule of law, the independence of the judiciary …free media and association… good governance and the presence of property rights. In short, the foundations for the sustained economic growth that lifts countries out of poverty. [41]

BIODIVERSITY

15. WWF have calculated that:

    Between 1970 and 2008, low-income countries experienced a 60% decline in species populations, while high-income countries avoided any losses. In effect, high-income countries are outsourcing the loss of species and habitats to lower-income countries. For example, the increasing demand for soy products in Europe and the US has resulted in forests being cleared in the Amazon, to make way for soy plantations. Such inequitable degradation of ecosystems will prevent economic, social and environmental sustainability from being achieved within the environmental limits of our one planet. Proportionally, high-income countries would require more than three planets to sustain their current levels of consumption, compared to middle income countries that rely on a little more than one planet and low-income countries that draw on only two thirds of the planet's resources. [42]

It concluded that "we now take 50% more each year from nature than the planet can replenish. This means we would need 1.5 planets for the world to replenish all the natural resources we currently demand. We would need three planets by 2050 if we keep consuming at the rate that is predicted." [43]

16. When we spoke to Dieter Helm, Chair of the Natural Capital Committee, in November 2014, he explained that he had not been asked to comment specifically on the Sustainable Development Goals,[44] but had advised the Government on the risks to natural capital and establishing natural capital accounts. He told us:

    We have pushed very hard for the ONS to produce proper accounts and the ONS have produced the first partial natural capital accounts for non-renewables, which show that they are going down and, therefore, show that the Government are not achieving the objective of maintaining natural capital intact. [45]

Karl Falkenberg, Director General of Environment at the European Commission, told us that they are "working to make available in environmental accounts, not just domestic resource use, but global resource use; meaning that we don't want to just take what has been used domestically in Europe to produce, but to see how and where those resources were sourced abroad and take a global picture into account". [46] Defra told us that the UK is "having conversations" in the EU and UN about natural capital accounting. [47]

17. Andrew Scott of the Overseas Development Institute (ODI) told us that the Millennium Development Goals were not sufficiently focused on the environment. He believed that:

    MDG7 was not achieved because it was a badly conceived goal and the targets underneath it were, let's be honest, not entirely about environmental sustainability and some of them were pretty unambitious. The message that we got on environmental sustainability was that it is an add-on. The message that we want to convey with the SDGs is that environmental sustainability is an essential component of all development processes.[48]

However, despite the scale of the challenges around biodiversity, global leaders do not appear to be prioritising it. Dan Rogerson MP, Under-Secretary of State at Defra, told us:

    We need to make sure that we embed all the aspects of policy for which Defra is responsible. The concern is that, if we put all the environmental goals into a silo, that will be the bit that does not get the funding and does not get the delivery as the programme moves forward. So we want to cut that right the way across, so that wherever people invest and wherever they make progress on development, it will be truly sustainable and we will the outcomes that we want. [49]

He told us that the reason that no Defra Minister had attended a recent UN conference on biodiversity was that only 40 member states had sent ministers.[50]

18. The Millennium Development Goals gave insufficient attention to environmental protection and sustainable development. The prioritisation of aid resources on vital areas of human development such as health and education, was at the expense of an integrated sustainable development agenda. The Open Working Group's proposals provide a broader framework which better captures the complexity and inter-dependency of the relationship between people and planet. The mix of standalone goals and integrated indicators has the potential to be just as action-orientated as the MDGs, but have the advantage of being more comprehensive. It includes innovative tools such as Natural Capital Accounting which help Governments measure what really matters to support decision making and guide policy. The Government, despite its innovative work on developing Natural Capital Accounts, is not currently showing sufficient leadership around biodiversity and environmental protection. It should actively champion this area in the Sustainable Development Goals in international negotiations, so that the 'green thread' that runs throughout the Goals leads to real improvements in environmental protection and improved outcomes by 2030.

CLIMATE CHANGE

19. Progress on climate change and poverty alleviation are interdependent. Stakeholder Forum told us:

    Eradicating poverty in the poorest parts of the world must… go hand in hand with reducing carbon emissions and pollution in the developed world, and with using finite resources more efficiently. Otherwise efforts to secure development and poverty eradication in the developing countries will increasingly be overwhelmed by the adverse impacts of global changes arising mainly from unsustainable practices in the developed world and middle income countries. [51]

Andrew Scott of ODI told us:

    Climate change presents the greatest threat to sustainable development and poverty eradication and if action is not taken on climate change then not only will poverty eradication and the millennium development goal types of goals be more difficult and more expensive to achieve, but in future, and perhaps towards the end of the SDG period, we risk seeing people being impoverished by climate change, a regressing of the gains that have been made. [52]

20. The Open Working Group's June 2014 report proposed a separate goal on climate change, whilst acknowledging that the United Nations Framework Convention on Climate Change is the primary international, inter-governmental forum for negotiating the global response to climate change.[53] The Secretary General's report explicitly states that the new agenda must "address the drivers of climate change and its consequences". [54]

21. A recent joint article by WWF and Care urged that governments use the fact that there are parallel processes aiming to reach ambitious goals for both sustainable development and climate change in late 2015 to ensure that the two processes inform each other:

    Recent negotiations on the SDGs and parallel discussions within the UNFCCC have revealed that governments often view the relationship between the two with caution - and, even, scepticism. … [We] call for greater cohesion between the two processes. We are convinced that if we are to build ambition for integrated action much stronger cooperation is urgently needed between these two negotiating processes. [55]

Thomas Lingard of Unilever said

    business is looking at the state of the international politics, trying to get a read on the level of political ambition to make a shift in the trajectory of business-as-usual. This is particularly true when it comes to climate and decarbonisation and the kinds of shifts that are required in the energy system. I think these international statements of intent to go in a particular direction at a particular level of ambition are incredibly powerful because of that signalling value. [56]

22. Christian Aid told us however that "Despite their support for climate visibility, [the Government] has been ambivalent about inclusion of a 'Climate Change goal'. … A climate goal is the only way of ensuring visibility and prioritisation, and clearly connecting action on climate change to poverty eradication." [57] Helen Dennis of Christian Aid said

    the challenge that is presented to us in terms of remaining below two degrees going forward is absolutely enormous and requires such a seismic shift in terms of our energy supplies, our approach to consumption, carbon emissions and so on. Everything that is possible to be done needs to be done. Therefore, ensuring that climate change is a headline within the Sustainable Development Goals and building that momentum ahead of Paris is one way in which we can try to drive the change that is needed in low carbon investment, climate resilient development and so on. [58]

Andrew Scott of ODI believed that the SDGs should "retain a separate climate change goal but we also make sure that climate change mitigation and adaptation and resilience are weaved through the targets of the other goals, particularly those related to the other environmental challenges and natural resource uses."[59]

23. DFID told us that:

    The [SDGs] framework must include measures to fully and visibly integrate climate change action, including:

    (a) Ambitious, climate-smart goals and targets in goals such as energy, water, agriculture deforestation, disaster resilience, natural resource management, and others as relevant;

    (b) Clear language on the need to hold the increase in global average temperature below a 2°C rise in accordance with existing international agreements.[60]

The Secretary of State for International Development, Justine Greening MP, did not directly answer our questions about having a separate climate change objective in the SDGs, but told us: "We certainly would not want to see the issue of climate change or, indeed, any broader sustainability in any way minimised in the framework that we get for 2015."[61] Amber Rudd MP, Under-Secretary of State at DECC, told us that she would "be disappointed if the words 'climate change' did not appear in one of the goals" but would leave it to the international negotiations.[62] DECC officials emphasised how the UNFCCC and Sustainable Development Goals negotiations should complement each other:

    Through the UNFCCC negotiations, we are trying to agree a set of commitments from countries; they are going to set targets for emission reductions. What we are looking at through the sustainable development goals is something that is going to help countries to look at what they have signed up for, in terms of their obligations and the direction of travel, but how are they going to deliver on the targets that they have agreed as part of the UNFCCC.[63]

24. Justine Greening told us: "I can be absolutely categorical that we see this whole area of sustainability as key. It is one of the reasons why we are doing so much work on climate change, but in my department we work hand in hand with DECC and also Defra very much on adaptation."[64] Andrew Scott of ODI told us "what we should be aiming for is the levels of ambition that the UK has in its own legislation being taken forward and promoted in the international field.[65] Amber Rudd told us that for DECC "our leadership, and our role in delivery on climate change, which is surely the most important thing, is focused on the UNFCCC endeavour to reach an international agreement in Paris next year. That is where our leadership, determination and focus are being played out."[66]

Community Energy and fossil fuel subsidies

25. Our previous inquiries have identified two areas where such leadership could be demonstrated—on community energy and ending fossil fuel subsidies. In our March 2014 report on Green Finance, we highlighted the importance of support for community-scale energy projects and policy stability to help tackle climate change.[67] Amber Rudd told us:

    Community energy is a vital part of producing and encouraging renewable energy locally, which is why my Department launched its community energy strategy earlier this year. We are very engaged and supportive of local communities, providing them with information and financial guidance about how to set schemes up. Community energy is an essential part of delivering on our targets and on local energy supplies. [68]

She highlighted how the Government has promoted shared ownership schemes, which have been successful in Germany, and will continue to learn from other successes. However, the Government's statements of support for the enormous potential of community energy has been undermined by the decision of the Financial Conduct Authority not to register new community energy co-operatives. [69] In response, DECC simply told us that it is "working with community energy stakeholders and the FCA to ensure the right balance is struck between consumer/investor protection and realising the full potential of community energy." [70]

26. The Open Working Group outcome document addressed the need for rationalising inefficient fossil fuel subsidies as part of the actions needed to tackle climate change. Our December 2013 report on Energy Subsidies highlighted the extent of fossil fuel energy subsidies in the UK, which we concluded were "inconsistent with the global effort to tackle climate change".[71] In 2009, the G-20 pledged to phase out "inefficient" and "harmful" fossil fuel subsidies as part of a wider strategy for combating climate change,[72] which was re-iterated in the November 2014 G-20 Brisbane summit.[73] The Secretary General's synthesis report similarly states that "Harmful fossil fuel subsidies, both direct and indirect, should be phased out."[74] A recent paper by ODI on energy subsidies highlights that some $600 billion is spent to support carbon-intensive energy, including $1.2 billion in the UK, principally in the form of tax breaks for North Sea oil exploration.[75] In its Response to our report on Energy subsidies, the Government stated that it "does not believe that it has any harmful energy policies ... The North Sea regime should not be considered a subsidy".[76] Amber Rudd told us that energy subsidies:

    is a question that we will go on debating. We have to make sure that we keep our electricity coming and our lights on. There are various subsidies for various elements of fossil fuels at the moment, but we are focused on renewables as a replacement as far as possible, and will continue to be so. [77]

In its 2014 Autumn Statement, the Government announced further tax breaks for oil and gas exploration.[78]

27. The similar timing of the SDG and climate change negotiations presents an important opportunity to embed climate change thinking throughout the SDGs—to avoid development that exacerbates climate change while also building decarbonisation and adaptation into development. However, at the same time as stating a commitment to ambitious action on climate change, the Government is pursuing contradictory policies by effectively giving subsidies for fossil fuels. The Government should publically support a separate climate change goal in the SDGs given the importance of reaching an ambitious global climate change agreement in Paris next year. It should also re-consider and rapidly phase out its continued subsidies to carbon intensive energy sources in line with the commitments made at Rio +20 and the Secretary General's call to phase out "harmful subsidies". The Government needs to do more domestically to support the transition to a low carbon economy, including urgently working with the FCA to make it easier for community groups to register as energy co-operatives. The Government should clearly set out the steps it is taking to achieve this.

Economic considerations

Trade and poverty

28. The Open Working Group report highlighted trade as an important element of the 'means of implementation'. It set out indicators for promoting "a universal, rules-based, open, non-discriminatory and equitable multilateral trading system", to significantly increase exports from developing countries.[79] Michael Gidney of the Fairtrade Foundation told us

    if you organise trade in a certain way, then trade can be the most incredible vehicle for fighting poverty and achieving sustainability. To do that you need good standards, standards across the range of sustainable goals, so environmental and social and economic standards, but you need also the highest standards of accountability and transparency—accountability to both ends of the supply chain, to consumers and to producers.[80]

CAFOD highlighted the impact of "unfair trade rules"… "on the lives of people living in extreme poverty"[81] and suggest that "DFID needs to have a stronger role on looking at development impacts of other UK policies, whether these are implemented through bilateral relationships or in multilateral trade deals."[82] Karl Falkenberg of the European Commission observed:

    With the opening of world trade, we have seen that a lot of developing countries have discovered substantive economic growth. To the extent that that growth is equally distributed within those countries, it has certainly been a useful element of addressing those concerns [about poverty].[83]

The Global Sustainability Institute warned that "the UK Government should ensure that its involvement in… any trade agreements, such as the proposed [Transatlantic Trade and Investment Partnership], are in line with commitments on sustainable development."[84] Karl Falkenberg from the European Commission told us that "If the EU and the US could agree on and set joint standards, that process would certainly be strengthened",[85] but cautioned that this would depend on the outcome of the negotiations:

    The EU's negotiating mandate clearly states that the outcome should not in any way limit or downgrade environmental or social legislation in the respective partners, so TTIP should not lead to a watering down in the United States or the EU. But that is our negotiating mandate, not the outcome of the negotiations.[86]

29. International trade has played an important role in reducing extreme poverty. But such gains often come at the expense of the environment. It is equally important that the poorest and most vulnerable groups are not further impoverished by changing trade rules and agreements. The Government's renewed focus on income poverty should not view economic development in isolation, but equally consider the environmental and social impacts of this economic activity and promote low carbon growth. It should demand the highest standards of environmental protection in trade deals, and ensure unequivocally that there is no potential for these to be undermined through dispute settlement mechanisms. We intend to look into TTIP in a future inquiry.

AIR QUALITY

30. Justine Greening told us that:

    We have seen with development in China just how much broad-based growth can lift people out of poverty. In 1981, over 80% of people in China were living on $1.25 or less a day. By 2009, that had fallen to 12%.[87]

But she also acknowledged that this has come at an environmental cost:

    When growth happens, it has to be sustainable because if it is not, you then have to retrofit the growth that has taken place so that it is one that people can live with. I have also been to Beijing and seen some of the air pollution challenges there. Of course here in the UK we have some of our own air pollution challenges as well. …this whole area is so important to make sure that it is going right the way through the next development framework.[88]

Our reports on Air Quality have highlighted the importance of understanding the environmental impacts of transport emissions in the UK,[89] but such concerns are even more acute in developing countries, where industrial export activity and road traffic emissions combine to adversely affect urban air quality. The United Nations Environment Programme estimate that more than 1 billion people are exposed to outdoor air pollution annually, and causes up to 1 million premature deaths each year.[90] Karl Falkenberg pointed to 400,000 premature deaths a year in Europe from poor air quality, and highlighted the link between high economic growth in China over the last 20 years and its air pollution. He concluded that:

    Similar problems occur in many other emerging economies with economic success. At the moment, a lot of environmental problems are rapidly growing, and I think there is also a rapidly growing understanding by the responsible governments that they need to find answers to these challenges.[91]

Justine Greening told us that "this Government will take the issue of air pollution incredibly seriously, including in relation to development."[92]

31. As we stated in our recent report on Action on Air Quality, air pollution is an "invisible killer" in the UK. However, poor air quality is also a major issue and cause of premature death in cities in many developing countries. The UK should lead international efforts to improve air quality in cities in developing countries, where an increasing number of people live. This could include international knowledge sharing around effective low emissions zones, low-emissions transport, and vehicle and fuel standards to save lives.

SUSTAINABLE CONSUMPTION AND PRODUCTION

32. While trade has helped to reduce poverty, its benefits may not be as widely shared as they should be. Helen Dennis of Christian Aid highlighted that "it is 20% of people who consume 80% of the world's resources, so there is massive inequity in the way in which we consume."[93] The Open Working Group outcome document included a goal—'Goal 12' on 'sustainable consumption and production'—with indicators on 'Sustainable management and efficient use of natural resources (12.2)', reducing food waste and food losses (12.3), and companies adopting sustainable practices and integrating sustainability information in their reporting (12.5).[94] The International Institute for Environment and Development (IIED) believed that "a truly universal SDG agenda requires a shift from a North-South development model to a universal global compact … [and] equitably shared responsibilities for all development partners."[95] Dominic White of WWF thought it "imperative that sustainable consumption and production stays in this [SDGs] framework, because I think developing countries will frown upon the developed nations if we do not find a way to look at ourselves and our actual consumption of resources".[96] The Royal Society stated:

    The SDGs and the Government's contribution to them should not overlook the environment or the implications of population and consumption patterns for a finite planet: (i) Future projected changes in climate and demography must be considered when developing policies in all areas of Government.; and (ii) Socio-economic systems and institutions must be developed which are not dependent on continued material consumption for growth.[97]

33. Dominic White of WWF believed that the approach in the Open Working Group's draft SDGs of "decoupling environmental degradation from economic growth … is the right direction of travel and … the onus is on developed countries to start looking at how we use fewer resources to still maintain a good standard of living".[98] The Secretary General's recent draft synthesis report notes that "the longer we wait to take action towards sustainable production and consumption, the more it will cost to solve the problem and the greater the technological challenges will be." [99]

34. Sustainable consumption and production requires action by businesses as well as Government. As we noted in our report on Outcomes of the Rio+20 Earth Summit, corporate sustainability reporting has the potential to help incentivise businesses "to fully address the environmental and social aspects of sustainable development".[100] The Government initiated emissions reporting by UK-listed large companies at the time of the Summit. The Global Sustainability Institute told us that the SDG process

    provides an opportunity to link corporate sustainability reporting with the goals, setting a framework for action by governments, intergovernmental institutions, and also companies….It will also require the development of corporate reporting indicators which are clearly linked to the SDGs and their targets.[101]

Karl Falkenberg told us that "we feel that environmental reporting needs to go beyond simply carbon emissions and energy use."[102] Dieter Helm of the Natural Capital Committee told us that his view was "if you really want to mainstream these natural capital issues, then you have to mainstream them right through normal corporate decision-making. The only way to do that is to stick them in the accounts."[103] Aviva Investors have made a number of recommendations for improving sustainable development investment. They advocated governments ensuring that "national corporate governance codes … integrate sustainable development."[104]

35. In evidence to our Circular economy inquiry, Tearfund told us that a "circular economy requires a seismic shift in the way we conduct economic activity and the way we view waste". [105] They told us

    In return it offers a triple dividend: improved living standards, greater efficiency and reduced environmental degradation. This dividend is available in developing countries as well as developed countries. Indeed, the implementation of circular economy principles offers fresh opportunities for greater poverty reduction, economic growth, environmental sustainability, resilience to commodity price fluctuations and public health (via reduced pollution) in developing countries.[106]

In our report, we highlighted the European Commission's proposals to improve resource productivity, including a target to increase it by a minimum of 30% by 2030.[107]

36. The European Commission's June 2014 Communication on the Sustainable Development Goals stated:

    Current patterns of production and consumption are not sustainable. For consumption, key actions are promoting the use of energy and resource efficient and environmentally friendly products, gradually eliminating environmentally harmful subsidies and sustainable procurement. Production issues include promoting innovative and resource-efficient production, corporate sustainability reporting, product life cycle assessment, sustainable construction, waste and chemicals management and the promotion of eco-entrepreneurship and eco-innovation.[108]

Karl Falkenberg of the European Commission told us that:

    A Europe scarce in raw materials needs to … look at waste not as something that we need to dump in landfills but as a valuable resource for the next generation of products that we want to build. … 600,000 jobs [could be] created in Europe by implementing circular economy objectives in bringing landfill to an end, recycling up to 70% of waste and at least recovering the energy of the remaining 30%. … Becoming 30% more resource efficient by 2030—our studies are talking of some 2 million jobs that would be added.[109]

Dan Rogerson told us in relation to sustainable consumption and production that:

    It is cross-cutting, so you can't deal with it in isolation, and I don't think you would want to deal with that in isolation. We can make real progress if we integrate it across all the sectors where it has an impact—food, water, energy and anything connected with growth. We need to look at the issues around the sustainability of that growth.[110]

He told us that the Government were seeking "to play an active part in the UN's 10-year Framework of Programmes on Sustainable Consumption and Production, in particular the Consumer Information Programme.[111]

Mainstreaming climate and environment in all programmes

37. Andrew Scott of ODI told us:

    I think [DFID's] record on climate change … is pretty good. Some of the other environmental challenges tend to take second place to the climate change challenge. Hopefully an SDG agenda will encourage all aid agencies to increasingly pay more attention to environmental sustainability, not just in the immediate term of the programme or project life but the longer-term consequences.[112]

WWF were concerned however about recent change in DFID's climate and environment assessment process for assessing aid programmes.[113] In response, Justine Greening explained that:

    We have gone through a programme within DFID called Future Fit, where we looked across the piece with country programmes about how we could make sure that climate and climate resilience in particular was integrated into all that work. We have now identified seven countries that are going to be almost like challenger countries that are going to do more innovative work, that are going to share that learning, and we very much recognise that these two things cannot be taken apart. They are inextricably linked. [114]

38. The UK should support the vital goal of sustainable and resource efficient consumption and production in the Sustainable Development Goals. Rising population growth means 'business as usual' economic models of disposable products are not an option in the 21st Century. Resource efficiency is something that makes both environmental and economic sense. It is therefore disappointing that the UK is taking only small steps when a larger shift towards a more resource efficient economy is needed. Whilst the Government supports ambitious goals for other countries for poverty reduction, it is reluctant to commit the UK to such ambitious goals in the EU. There is also a role for businesses, which can be supported by more detailed corporate sustainability reporting. The Government should accelerate its work on resource efficiency and the circular economy, including through negotiating ambitious targets within the European Union. The Government should expand the requirement for corporate sustainability reporting beyond carbon emissions. Defra should ensure that this agenda is embraced across Government, and DFID should review its aid programmes to find opportunities to fund circular economy approaches. As it considers how best to support its future aid programmes to promote economic growth, it needs to learn lessons from the environmental degradation that has frequently accompanied rapid economic growth. It should ensure that all projects funded with UK aid, from international to community level, including the components implemented by delivery partners, are screened for climate and environment risks. It should also ensure that economic development related programmes fully safeguard biodiversity and tread a new path which de-couples economic growth from natural resource use.

Social and human development, and inequality

39. The Millennium Development Goals focused international attention on social and human development, but Helen Dennis of Christian Aid noted that "There are still 1.2 billion people living in extreme income poverty globally, and that is something that needs to be addressed, not just around income but … the environmental sustainability goal. … There are 2.5 billion people still without access to sanitation. These are significant justice and human rights issues that need to be addressed."[115] Action Against Hunger told us:

    we are concerned that the UK Government gives too much importance to economic development and are concerned it is too often viewed as a 'magic bullet' in development. We have seen time and time again, that economic growth on its own is insufficient in improving the nutrition status of countries.[116]

Andrew Scott of ODI believed that high consumption amongst the rising number of middle income was the most serious threat to environment and resource consumption:

    Clearly a priority is to enable the people who are living in extreme poverty to get out of extreme poverty. The additional consumption of resources that that itself is going to entail in the global scheme of things is not hugely significant. The increased environmental degradation and the damage to the environment is going to come from growth and income increases among middle class, middle income people. The SDG package has to say something about that as well as to address the poverty eradication challenge.[117]

40. The World Bank has written that:

    High inequality is for many of us morally unacceptable and a symptom of a broken social contract. High inequality can lead to social conflict and instability which might result in lower economic standards for everyone. High inequality is in many cases a reflection that everyone does not have the same chances in life, that some have access to basic economic, social and human rights and others not, that opportunities are related to where you were born, who your parents are, or your race or gender.

    Moreover, no country has transited to high income status with very high levels of inequality, and countries with the highest living standards have, in general, lower levels of inequality than low income countries. So there are many reasons why reducing inequality is a valid development objective by itself.

    Reducing inequality is a valid development goal, and in the medium and long-run it is, most likely, the only way to sustainably increase incomes of those at the bottom.[118]

The Open Working Group outcome document included a proposed SDG on inequality. It proposed 'Goal 10' to "reduce inequality within and among countries". The main indicator for this would, they suggested, be "by 2030, progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average". [119] The Secretary General's synthesis report highlighted "Dignity" as one of six "essential elements" of the SDGs, and identified poverty and inequality as "defining challenges of our time":

    Eradicating poverty by 2030 is the overarching objective of the sustainable development agenda…. The defining challenge of our time is to close the gap between our determination to ensure a life of dignity for all on the one hand, and the reality of persisting poverty and deepening inequality on the other.[120]

His report highlighted the importance of ensuring "equality, non-discrimination, equity and inclusion at all levels":

    We must pay special attention to the people, groups and countries most in need. This is the century of women: we will not realize our full potential if half of humanity continues to be held back. We also need to include the poor, children, adolescents, youth, and the aged, as well as the unemployed, rural populations, slum dwellers, persons with disabilities, indigenous peoples, migrants, refugees and displaced persons, vulnerable groups and minorities. These also include those affected by climate change, those living in [Less Developed Countries], landlocked countries, small island developing states, middle-income countries, conflict countries or in areas under occupation, in places struck by complex medical and humanitarian emergencies or in situations affected by terrorism. And they have called for an end to all forms of gender inequality, gender-based discrimination, and violence against women, children and young boys and girls. [121]

41. BOND Beyond 2015 thought that "The UK Government should push for inequality to be set as a priority in the SDG framework by … adopting a stand-alone goal on inequality."[122] They stated:

    The UK Government is giving insufficient attention to the link between inequality and environmental sustainability. Addressing inequality is vital for sustainable development. Some of the poorest communities, especially indigenous communities, are highly dependent on land and natural resources for their livelihoods, assets which are increasingly under threat due to climate change. Climate related natural disasters are likely to threaten long term poverty eradication. And the excessive consumption of the world's wealthiest people is the biggest source of environmental stress, with just 11% of the global population generating approximately 50% of global carbon emissions.[123]

Pope Francis recently put this in stark terms when he called increasing inequality "the root of social evil".[124] Oxfam's recent Even it up report highlighted how

    economic inequality has reached extreme levels. From Ghana to Germany, Italy to Indonesia, the gap between rich and poor is widening. In 2013, seven out of 10 people lived in countries where economic inequality was worse than 30 years ago, and in 2014 Oxfam calculated that just 85 people owned as much wealth as the poorest half of humanity.[125]

42. Kevin Watkins of the Overseas Development Institute has set out an "equity agenda for the post-2015 goals" with "stepping stone equity targets".[126] In Zambia, he noted, "the richest 10% saw their share of consumption rise from 33% to 43% between 2000 and 2005", and "without rising inequality, economic growth would have lifted another 700,000 people out of poverty in Tanzania".[127] He concluded that:

    Lower inequality is not an automatic route to poverty reduction (compare and contrast China with less unequal Tanzania). On the other hand, rising inequality from high initial levels is a pretty much guaranteed route to slower poverty reduction.[128]

43. Helen Dennis of Christian Aid told us that it is possible to set a measurable yardstick limit for inequality:

    There is a fairly concrete proposal that Joseph Stiglitz put on the table, where he has basically said that there should be an assumption or a consensus that the… post-tax income of the top 10% should be no greater than the post-transfer income of the bottom 40%, which is essentially a Palma ratio of one. That is very stretching. For a country like South Africa, for example, with such exceptional levels of economic inequality, you would look at that and think that is almost unattainable, but I think it is about setting the direction of travel.[129]

The UK's Sustainable Development Indicators measure median income as well as GDP, in order to better reflect "economic prosperity experienced by people on a daily basis". The 2013 Sustainable Development Indicators report states: "Examining income distribution can reveal the inequalities implicit in household income".[130] Although the World Bank has a goal to 'promote shared prosperity', it has chosen to focus only on measuring the income growth of the poorest 40%. The World Bank observed that while this might be "a crude approximation of the socioeconomic status of those at the bottom, it is a pertinent development goal for all countries … regardless of the initial level of development, regardless of the moment in the economic cycle…".[131]

44. Justine Greening told us that the Government's focus is on "leaving no one behind and lifting people out of extreme poverty and, in fact, eradicating that in a generation."[132] She explained:

    Our focus is on reaching to the very, very poorest people in the world and eradicating extreme poverty. How their circumstances relate to other people is a secondary consideration from my perspective. … The work that we do … is about reaching out to the very poorest people who often have absolutely nothing, or perhaps have very little, and when disaster hits they are often hit hardest and hit first and have the least capability to be able to bounce back from that. Those are the people that we are focusing on and that is personally where I feel the next framework should focus as well.[133]

45. Inequality prevents sustainable development, not only because it can undermine social cohesion and a sense of shared well-being, but because some sections of societies may be excluded from the benefits of development and prosperity. The UK is right to have a focus on completing the task of the MDGs in eliminating 'extreme poverty', but this can best be achieved as part of a wider focus that includes tackling inequality to help deal with both poverty and social cohesion. The UK should support the inclusion in the SDGs of a range of inequality indicators to measure and monitor inequality, and should design programmes to tackle both extreme poverty and inequality simultaneously.


33   Beyond2015UK Environmental Sustainability in a Post-2015 framework (September 2014) p1 Back

34   Q93 Back

35   Q94 Back

36   Q94 Back

37   United Nations The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet Synthesis Report of the Secretary-General On the Post-2015 Agenda - advanced unedited version (December 2014) para 49 Back

38   STEPS Centre (SDG004) para 4 Back

39   BOND Beyond 2015 UK (SDG0015) Back

40   DFID (SDG 0011) paras 10-11 Back

41   Speech to the Transparency International Post 2015 High-Level event (September 2014)  Back

42   WWF More than the sum of its parts (2014) Back

43   WWF More than the sum of its parts (2014) Back

44   Oral evidence taken on 28 November 2014, HC 756, Q51  Back

45   Oral evidence taken on 28 November 2014, HC 756, Q13 Back

46   Q226 Back

47   Q158 Back

48   Q95 Back

49   Q131 Back

50   Q140 Back

51   Stakeholder Forum (SDG0021)  Back

52   Q99 Back

53   United Nations Open Working Group proposal for Sustainable Development Goals (July 2014) Goal 13 Back

54   United Nations The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet Synthesis Report of the Secretary-General On the Post-2015 Agenda - advanced unedited version (December 2014) para 65 Back

55   Huffington Post UNFCCC and Post-2015 Development: More Than the Sum of the Parts (1 October 2014) Accessed 9 December 2014 Back

56   Q112 Back

57   Christian Aid (SDG0009) para 2.4 Back

58   Q98 Back

59   Q99 Back

60   DFID (SDG 0011) para 16 Back

61   Q8 Back

62   Q136 Back

63   Q163 Back

64   Q7 Back

65   Q101 Back

66   Q170 Back

67   Environmental Audit Committee, Twelfth report of session 2013-14, Green Finance HC 191  Back

68   Q166 Back

69   The Guardian Green energy co-ops blocked by government regulator (August 2014) Back

70   DECC (SDG0036)  Back

71   Environmental Audit Committee, Ninth report of session 2013-14, Energy Subsidies HC 61 Back

72   G20 Leaders Statement: The Pittsburgh Summit  Back

73   G20 Principles on Energy Collaboration (16 November 2014) Back

74   United Nations The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet Synthesis Report of the Secretary-General On the Post-2015 Agenda - advanced unedited version (December 2014) para 102 Back

75   ODI paper Back

76   Government response Para 9 Back

77   Q165 Back

78   HM Treasury, Autumn Statement 2014 para 1.125 Back

79   United Nations Open Working Group proposal for Sustainable Development Goals (July 2014) 17.10 Back

80   Q110 Back

81   CAFOD (SDG0012) para 3 Back

82   CAFOD (SDG0012) para 28 Back

83   Q238 Back

84   Global Sustainability Institute (SDG001) para 13 Back

85   Q241 Back

86   Q241 Back

87   Q13 Back

88   Q73 Back

89   Environmental Audit Committee Sixth report of 2014-15 Action on Air Quality HC 212;Environmental Audit Committee, Ninth Report of Session 2010-12, Air quality: a follow up report, HC 1024 Back

90   United Nations Environment Programme Urban Air Pollution Accessed 9 December 2014  Back

91   Q237 Back

92   Q73 Back

93   Q96 Back

94   United Nations Open Working Group proposal for Sustainable Development Goals (July 2014)  Back

95   International Institute for Environment and Development (IIED) (SDG0017) Back

96   Q96 Back

97   The Royal Society (SDG0019) para 1.b) Back

98   Q96 Back

99   United Nations The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet Synthesis Report of the Secretary-General On the Post-2015 Agenda - advanced unedited version (December 2014) para 76 Back

100   Environmental Audit Committee, Second report of session 2013-14, Outcomes of the UN Rio+20 Earth Summit HC 200 para 41 Back

101   Global Sustainability Institute (SDG001) para 5 Back

102   Q227 Back

103   Oral evidence taken on 28 November 2014, HC 756, Q34 Back

104   Aviva Investors (SDG0007) para 1.4 Back

105   Tearfund (GCE0009) HC 214 para 1 Back

106   Tearfund (GCE0009) HC 214para 2 Back

107   Environmental Audit Committee, Third report of session 2014-15, Growing a circular economy: Ending the throwaway society HC 214, para 63 Back

108   European Commission A decent Life for all: from vision to collective action COM(2014) 335 (June 2014)  Back

109   Q225 Back

110   Q155 Back

111   Defra (SDG0037)  Back

112   Q97 Back

113   Q97 Back

114   Q7 Back

115   Q96 Back

116   Action Against Hunger (SDG0035) para 2.5 Back

117   Q96 Back

118   World Bank Why didn't the World Bank Make Reducing Inequality One of its Goals? Accessed 9 December 2014  Back

119   United Nations Open Working Group proposal for Sustainable Development Goals (July 2014) 10.1 Back

120   United Nations The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet Synthesis Report of the Secretary-General On the Post-2015 Agenda - advanced unedited version (December 2014) para 67 Back

121   United Nations The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet Synthesis Report of the Secretary-General On the Post-2015 Agenda - advanced unedited version (December 2014) para 51 Back

122   BOND Beyond 2015 UK (SDG0015) para 2.14 Back

123   BOND Beyond 2015 UK (SDG0015) para 2.11 Back

124   Pope Francis Tweet 28 April 2014 Back

125   Oxfam Even it Up: Time to end extreme inequality (October 2014)  Back

126   Kevin Watkins Leaving no-one behind: an equity agenda for the post-2015 goals (October 2013) p2 Back

127   Kevin Watkins Leaving no-one behind: an equity agenda for the post-2015 goals (October 2013) p3 Back

128   Kevin Watkins Leaving no-one behind: an equity agenda for the post-2015 goals (October 2013) p8 Back

129   Q106 Back

130   Defra Sustainable Development Indicators (July 2013) p16 Back

131   World Bank Why didn't the World Bank Make Reducing Inequality One of its Goals? Accessed 9 December 2014  Back

132   Q55 Back

133   Q51 Back


 
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© Parliamentary copyright 2014
Prepared 15 December 2014