Ecological debt:Ecological debt:Results of the core researchResults of the core research

Erik Paredis Erik Paredis

Centre for Sustainable Development – Ghent UniversityCentre for Sustainable Development – Ghent Universityhttp://cdonet.UGent.behttp://cdonet.UGent.be

CDO-VODO Conference, Brussels, 18 May 2004‘The Concept of Ecological Debt:

its Meaning and Applicability in International Policy’

Umicore and ‘ecological debt’Umicore and ‘ecological debt’

23 April 2004: 23 April 2004: agreement between Umicore agreement between Umicore and Flemish government for paying and Flemish government for paying ‘environmental liabilities’‘environmental liabilities’

Sanitation of soil and groundwater in its Sanitation of soil and groundwater in its four Flemish sites four Flemish sites

77 million Euros over next 15 years77 million Euros over next 15 years

Umicore is the new name of Union Minière Umicore is the new name of Union Minière (du Haut Katanga)(du Haut Katanga)

Overview Overview

State of affairs on ecological debtState of affairs on ecological debt

Searching for a workable definitionSearching for a workable definition

Trying to calculate ecological debtTrying to calculate ecological debt

The world of ecological debtThe world of ecological debt

Political implications of recognising ecological Political implications of recognising ecological debt: new perspectivesdebt: new perspectives

A state of affairsA state of affairsMain conclusions:Main conclusions: meaningful new dimension to sustainability and North-meaningful new dimension to sustainability and North-

South debateSouth debate No univocal definitionNo univocal definition No uniform methodology for calculationNo uniform methodology for calculation Limited discussion on political translationLimited discussion on political translation At this stage of development: utility in international At this stage of development: utility in international

negotiations severely restrictednegotiations severely restricted

Some causes:Some causes: Bottom-up development through NGO campaigningBottom-up development through NGO campaigning Developing phaseDeveloping phase Limited scientific supportLimited scientific support

Defining (1): the core meaningDefining (1): the core meaning

Two essential processes should be covered:Two essential processes should be covered: In accumulating wealth countries cause In accumulating wealth countries cause

ecological damage elsewhereecological damage elsewhere In accumulating wealth countries use In accumulating wealth countries use

ecosystem services, limiting the possible ecosystem services, limiting the possible use by othersuse by others

Defining (2): working definitionDefining (2): working definitionAmbition:Ambition: cover contents AND enhance utility of the concept cover contents AND enhance utility of the concept

The ecological debt of country A consists of:1)1) The The ecological damageecological damage caused over time by country A in caused over time by country A in

other countries or in an area under jurisdiction of another other countries or in an area under jurisdiction of another country through its production and consumption patterns, country through its production and consumption patterns, and/orand/or

2)2) the the ecological damageecological damage caused over time by country A to caused over time by country A to ecosystems beyond national jurisdiction through its ecosystems beyond national jurisdiction through its consumption and production patterns; and/orconsumption and production patterns; and/or

3)3) the the exploitation orexploitation or useuse of ecosystems and ecosystem goods of ecosystems and ecosystem goods and services over time by country A, and services over time by country A, at the expense of the at the expense of the equitable rightsequitable rights to these ecosystems and ecosystem goods to these ecosystems and ecosystem goods and services by other countries or individualsand services by other countries or individuals

Defining (3): refinements Defining (3): refinements Working definition Possible refinments

“The ecological debt of country A consists of:

(1) … , and/or(2) … , and/or(3) …“

What is ecological damage? Pollution, depletion, degradation

Damage/use according to geographical scale? Global, continental, fluvial, regional, local

Equitable rights to ecosystem services? Defining ‘equity’ Selecting ecosystem goods and services

Who are debtors and creditors? Countries Present and future generations Actors

Which quantification? Physical or monetary

Which time perspective? Each refinement its own time perspective

Calculating ecological debtCalculating ecological debt

Ecological debtEcological debtEcological damageEcological damage Use at the expense of equitable Use at the expense of equitable

rightsrights

Indicators for pollution, depletion, degradation

(DPSIR)

Material Flow Analysis

Monetary valuation

Monetary valuation

Ecological footprints – Environmental Space

The world of ecological debtThe world of ecological debt

ED

Ecological economics

Environmental justiceHuman rights

……

Historical injustice and restitution

Biophysicalaccounting systems

Political implications (1): climatePolitical implications (1): climate

Commitment period after Kyoto: Commitment period after Kyoto: contraction,convergence AND contraction,convergence AND compensationcompensation

Per

cap

ita

em

issi

on

s

210020502000

Convergence target

Industrial countries emission profile

Developing countries emission profile

Political implications (2): debtPolitical implications (2): debt

Necessary steps:Necessary steps: Discussion on status of external debt: repayments made, Discussion on status of external debt: repayments made,

legitimacy,…legitimacy,… Use of ecological debt as reference material and as an Use of ecological debt as reference material and as an

additional argument for debt cancellationadditional argument for debt cancellation

Belgium:Belgium: External debt owed to Belgium: 16 billion Euro (41 HIPC External debt owed to Belgium: 16 billion Euro (41 HIPC

countries: 2,3 billion Euro)countries: 2,3 billion Euro) Total ecological debt 1999 (Torras): 250 billion Euro, of Total ecological debt 1999 (Torras): 250 billion Euro, of

which 10-20 billion Euro is inter-country debtwhich 10-20 billion Euro is inter-country debt Carbon debt 1900-2003 (modular research): 42-57 billion Carbon debt 1900-2003 (modular research): 42-57 billion

Euro, of which around 30 billion Euro is inter-country debtEuro, of which around 30 billion Euro is inter-country debt

Political implications (3): tradePolitical implications (3): trade

Underlying mechanism of ecological debt:Underlying mechanism of ecological debt: ecologically ecologically unequal exchange unequal exchange puts into question the assumed puts into question the assumed positive link between free trade and sustainable positive link between free trade and sustainable developmentdevelopment

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Interim conclusionsInterim conclusions

Meaningful new dimension to sustainability and Meaningful new dimension to sustainability and North-South debateNorth-South debate

At this stage of development: utility in At this stage of development: utility in international negotiations severely restrictedinternational negotiations severely restricted

BUTBUT Possible to formulate a suitable definitionPossible to formulate a suitable definition Possible to work on a consistent methodology Possible to work on a consistent methodology

for calculationfor calculation Possible and necessary to integrate in Possible and necessary to integrate in

international policy formulationinternational policy formulation