Winnipeg — The International Institute for Sustainable Development is deeply saddened at the passing of The Right Honorable Brian Mulroney, former Prime Minister of Canada (1984 – 93).

It was in 1988 that Mulroney announced the creation of IISD at the United Nations, promising “Mankind is not destined to destroy itself; war is not inevitable; poverty can be alleviated; the environment can be preserved; injustices can be made right.”

These powerful words have continued to drive IISD for more than 30 years, as we strive to fulfill this commitment and create a world where people and the planet thrive.

In 1987, Mulroney played an integral role in convincing more than 40 world leaders to drastically cut the use of ozone-destroying CFCs, signing what would become known as the Montreal Protocol (since then, more than 150 other nations have signed the treaty).

A year later, he hosted the landmark World Climate Change Conference in Toronto, a conference that represented a major stepping stone in getting climate change on the global agenda. And in 1991, Mulroney signed the Canada-United States Air Quality Agreement with President George H. W. Bush to reduce pollution caused by acid rain.

“Brian Mulroney was a visionary when it comes to the environment, and we are proud to be part of his legacy,” said Patricia Fuller, IISD President and CEO. “We are filled with profound sadness at his passing, and express our deepest condolences to his wife Mila, and to his family.”

He is survived by his wife and four children, Caroline, Ben, Mark, and Nicholas.

February 22, 2024 – As governments face increasing pressure to protect their forests, new research highlights the importance of sharing the wins and setbacks of tried and tested action in the Global South.

A new report from the International Institute for Sustainable Development (IISD) analyzes successes and challenges encountered by five developing countries in their attempts to reduce deforestation and improve forest conservation. From these experiences, it distils seven common findings to help guide governments seeking similar goals in a fast-evolving regulatory context.

“Forests sustain and protect us in a myriad of ways, but they are disappearing—fast. The world has lost 420 million hectares of forest in the past 3 decades. That’s an area bigger than India,” says Cristina Larrea, IISD’s lead on sustainability standards. “But there is hope. We must not lose sight of the efforts many countries in the Global South have been undertaking to curb this trend for many decades, nor the value of sharing the lessons they have learned to inspire policy action based on best practices.”

The report outlines and compares various policy measures that Costa Rica, Gabon, Indonesia, Peru, and Rwanda have put in place to address deforestation and explores the role of voluntary sustainability standards (VSSs) in complementing them.

It further finds that governments tend to have more success preserving and restoring forests if they use a combination of measures tailored to the local context and targeted at high-risk areas. They also stand to gain from supporting producers with maintaining compliance, mobilizing funds from both the public and private sectors, leveraging VSSs to support policies, and using physical and digital monitoring to measure results and flag issues early.

“Environmental issues are getting harder to ignore in the international trade arena,” says Florencia Sarmiento, Policy Analyst, IISD. “Governments must comply with an emerging suite of international regulations and frameworks, including several unilateral trade-related measures, such as due diligence requirements, aimed at tackling deforestation driven by the production and trade of commodities. Many have also started looking into cooperative approaches, such as including forest conservation provisions in free trade agreements.”

As policy-makers gather for the World Trade Organization’s Thirteenth Ministerial Conference next week, IISD is bringing together thought leaders at the Trade + Sustainability Hub to discuss how trade policy can deliver on critical sustainability challenges such as deforestation. IISD experts will share findings from the new report in a session on how we can achieve fair and inclusive value chains that are deforestation-free.

Contact

For more information or to set up an interview, contact [email protected].

About the State of Sustainability Initiatives

IISD’s State of Sustainability Initiatives advances sustainable and inclusive value chains by providing credible and solutions-oriented research, dialogue, and strategic advice for decision-makers about voluntary sustainability standards and other supportive initiatives.

January 30, 2024 – Voluntary standards and initiatives for carbon management (VSICMs) can help fill a legal void in climate regulations and add much-needed credibility to corporate climate action claims. However, new research shows that a lack of uptake from private sector companies and limited coordination and alignment between VSICMs are hindering their impact.

Two new reports from the International Institute for Sustainable Development (IISD) unpack and address these issues by mapping out the different types of voluntary measures that companies can use to reduce carbon emissions and outlining what more needs to be done for them to reach their potential.

“At a time when not all greenhouse gas emissions are strictly regulated across countries and sectors with the ambition required, VSICMs can provide companies with a useful roadmap for reducing their carbon emissions,” says Arturo Balderas, senior consultant on climate action. “They can also increase the transparency and credibility of their carbon management efforts and claims—helping regulators, businesses, and consumers start to distinguish real impact from greenwashing.”

But the co-existence of—and competition among—multiple standards and initiatives has created a complex landscape. IISD’s new reports help companies understand the different types of VSICMs and how they can help them advance their carbon management practices. They also outline some of the challenges that such initiatives face, alongside recommendations for addressing them.

“VSICMs need to foster substantial action and increase the number of businesses participating in their schemes to have any hope of limiting global warming to 1.5°C,” said Erika Luna, expert in sustainability standards at IISD. “A lack of data and standardization across different schemes and initiatives means that claims can sometimes be inaccurate or misleading, as well as difficult to compare.”

Validating and comparing results across schemes and initiatives is further complicated by the absence of a consistent, transparent, and traceable system to present and verify data obtained through VSICMs. This is particularly important when communicating a company’s progress in reducing its carbon emissions to the people buying or using its goods and services . IISD’s researchers are calling for a clear governance framework to promote alignment and coordination across initiatives and enhance the effectiveness and credibility of voluntary efforts in carbon management. 

Contact

For more information or to set up an interview, contact [email protected].

Winnipeg—The International Institute of Sustainable Development (IISD) is pleased to announce that Patricia Fuller will be stepping into the role of President and CEO, leading the organization into an exciting new chapter.

Currently a senior fellow at the University of Ottawa, Fuller has more than 30 years of experience in public policy and diplomacy, with a focus on climate change, energy, and trade policy. She previously served as Canada’s Ambassador for Climate Change, where she built international coalitions and partnerships to advance action on climate change and climate finance and, before this, headed the Office of Energy Efficiency at Natural Resources Canada. Her diplomatic career included representing Canada as Ambassador to Chile and to Uruguay.

"IISD is an organization with global reach and deep expertise in the key sustainability issues of our time," says Fuller. "It’s an honour to be named as IISD’s next leader."

Appointed as the new President and CEO by IISD’s board of directors after a months-long search process, Fuller will be leading the institute at a time of growth. With more than 260 staff, IISD is now influencing global agreements and sustainability policy in over 50 countries, expanding its reach and increasing its impact more than ever before.

"The Board is delighted that Patricia is joining to lead IISD and looks forward to working with her as the team continues to excel in its important work," says Michelle Edkins, Chair of the Board for IISD. "I also want to take this opportunity to extend my deepest thanks to IISD’s interim co-CEOs, Martha Casey and Nathalie Bernasconi, whose leadership throughout this transition has been invaluable."

Fuller starts at IISD on February 2, 2024.

For further information or press inquiries, please contact [email protected].

December 14, 2023, Cape Town—The development of major gas deposits off the coast of Mozambique in East Africa could fail to boost the country’s economy as predicted, with future demand from European markets far from guaranteed, new research reveals. 

Mozambique's liquified natural gas (LNG) deposits were heralded in 2010 as a certain route to economic prosperity for the country—one of the world's poorest—when first discovered. In 2016, the International Monetary Fund (IMF) estimated total revenues could reach USD 500 billion by 2045. 

But that figure now appears to be "detached from reality," say the authors of a new report, Navigating Decisions: The risks to Mozambique from liquified natural gas export projects.

Instead, the report warns, the country's LNG plans could ultimately backfire, undermining Mozambique's economy and sovereignty, impacting the environment, and worsening social tensions. 

"The LNG bonanza in Mozambique looks increasingly risky," says Richard Halsey, a policy advisor at IISD and lead author of the report.

"The Mozambican government has promoted LNG as a panacea to its economic woes, but our study shows big profits may fail to materialize. Furthermore, it is clear that the path the government is taking to accommodate powerful foreign interests puts Mozambique in a vulnerable position, where potential benefits lie in the distant future and existing debt liabilities remain with the state, not with the international fossil fuel companies which will benefit immediately."

Since the discovery of the gas deposits, Mozambique’s development strategy has relied heavily on the supposed financial returns from future gas projects, which were forecast to increase GDP, spur industrialization, and create jobs. 

Twelve years later, this has not happened, and the country is now in a worse socio-economic position than before. Growth in GDP has decreased while debt, inequality, unemployment, and poverty have increased, with Cabo Delgado, the coastal region where LNG development is most focused, the worst affected.

Halsey adds: "The social impacts linked to LNG projects cannot be understated. Gas development has already seen hundreds of forced relocations, the majority of new jobs going to foreign workers, and the severe intimidation of journalists. It has also been flanked by an escalation of violence from Islamist jihadists this year. This does not paint a promising picture for the future, but it is not too late to change course."

Volatility in European markets means that while demand for LNG is currently high, it is not assured over the long term. Following Russia's invasion of Ukraine and subsequent trade sanctions reducing the supply of Russian gas, European countries have scrambled to secure LNG supplies. This has put Mozambique's gas projects among the key prospects for EU import deals.

However, the accelerating global shift to renewables, combined with growing concern over fossil fuels' climate-altering impacts, means developed markets are increasingly committing to slashing their imports of coal, oil, and gas in the long term, researchers found. 

The expansion of LNG operations in other countries also threatens to reduce Mozambique's profit as supply lines grow and competition increases. 

Despite the long-term outlook, international finance for fossil fuels in Mozambique has been far greater than for renewables. By the end of 2020, support for renewables in the country stood at a total of EUR 201 million. In contrast, international public finance for TotalEnergies' LNG project was 60 times greater in 2020, at USD 13.8 billion. 

Instead of forging ahead with LNG projects that aren’t yet operational, say the report authors, Mozambique would be better off pursuing less risky industries with long-term economic and environmental sustainability at their core and clear socio-economic benefits. 

Media Contacts

Richard Halsey, Policy Advisor, IISD’s South Africa team: [email protected]
Harry Cockburn, Communications Consultant, IISD: [email protected]

November 22, 2023—Governments provided over USD 1.7 trillion in public money to support fossil fuels in 2022—a record high—despite 91% of global carbon dioxide emissions originating from fossil fuels last year, according to new research. As the UN Climate Change Conference (COP 28) kicks off next week, this remains a central issue in climate negotiations.

The amount includes fossil fuel subsidies (USD 1.3 trillion), investments by state-owned enterprises in G20 countries (USD 350 billion), and lending from public financial institutions by G7 countries and multilateral development banks (USD 22 billion), reveals the study Burning Billions: Record Public Money for Fossil Fuels Impeding Climate Action by the International Institute for Sustainable Development (IISD).

Fossil fuel subsidies increased substantially in 2022, reaching more than four times the annual average in the 2010s, with the jump driven by vast consumer subsidies in response to the energy crisis. 

Meanwhile, investments in fossil fuel infrastructure by state-owned energy companies in G20 countries hit an 8-year high. And although the international public financing for fossil fuel projects has decreased in recent years, it is still nearly four times greater than financing for clean energy.

“Despite bold commitments to combat climate change, governments continue to pour trillions of dollars into the production and consumption of fossil fuels,” says Tara Laan, Senior Associate at IISD and the lead author of the study. “Commitments need deadlines and frameworks to be effective. To turn global leaders’ words into action, it’s crucial that they fortify their efforts to shift subsidies and other financial flows away from fossil fuels and into clean energy solutions, starting at COP 28.”

What might that look like? At COP 27, countries reaffirmed their promise to accelerate efforts to phase out “inefficient fossil fuel subsidies.” Laan says COP 28 parties should drop the “inefficient” qualifier, and set a deadline for eliminating all fossil fuel subsidies—2025 for developed countries and 2030 for developing countries—while defining specific cases when temporary exceptions could apply, such as for targeted subsidies supporting essential energy access until alternatives are in place. 

IISD experts emphasize that these measures should be implemented in parallel with policies to ensure protection for vulnerable populations and support for fossil-fuel-dependent communities.

Renewable energy rise must come with the phase-out of fossil fuels.
“Though financial support for clean energy is on the rise, this alone will not be sufficient to limit global warming to 1.5°C,” says Laan. “Governments need to use every available tool to accelerate the clean energy transition, and phasing out funding for fossil fuels, as well as their production and use, is the other half of the equation.”

The report shows that global investment in renewable power generation by both public and private sources rose to record levels, hitting an annual investment of USD 486 billion in 2022. However, the data shows this is only half the amount invested in fossil fuels in the same period and far less than what is needed to achieve the Paris Agreement goals. 

By redirecting the financial support currently going to fossil fuel consumption and production and raising fossil fuel taxes to better reflect their social costs, governments could better support developing countries’ energy transitions as well as boost national social welfare, sustainable critical raw mineral industries, clean energy, and behavioural change in key areas such as transportation. 

In response to justifications of fossil fuel spending that point to the continued dominance of fossil fuels in the world’s energy systems, the authors say the problem is that dominance can’t end while fossil fuels continue to receive support from taxpayers. 

“There’s just no credible argument for continuing fossil fuel subsidies in the face of a climate crisis that will destroy economies and livelihoods, while clean energy sources are increasingly cost-competitive and provide an opportunity to make the world more just and equitable,” adds Laan.

Media Contacts
Tara Laan, Senior Associate, IISD: [email protected]
Aia Brnic, Senior Communications Officer, IISD: [email protected]

WINNIPEG, November 15, 2023 – Natural infrastructure contributes over CAD 4 billion annually to the economy of Canada's Prairies, as well as tens of thousands of jobs. There's still room for growth: more investment can build greater resilience to droughts, floods, fires, and other severe weather impacts—many of which afflicted the region this summer—as well as increase jobs and GDP.

This is according to a new report released today by the International Institute for Sustainable Development (IISD), a Winnipeg-based think tank, in collaboration with Delphi. The report shows greater investment is needed in natural infrastructure to increase prosperity on the Prairies.

In Alberta, Saskatchewan, and Manitoba, it is estimated this sector directly employed more than 33,000 people and contributed over CAD 4.1 billion to Prairie-wide GDP in 2022. With additional investments across the Prairie provinces of CAD 40 million to CAD 100 million per year, the sector could see between 18% and 25% direct job growth by 2030.

According to IISD's research, natural infrastructure can help by providing essential water infrastructure services at a fraction of the cost of grey infrastructure. This is important across the Prairies, but especially in rural areas; the agriculture sector, which was hit hard by drought this year; and the insurance sector.

"Natural infrastructure can help meet important water-related needs, for example, in helping protect against flooding or drought or helping to treat stormwater or wastewater," explains Josée Méthot, Senior Water Policy Specialist with IISD.

"In order to implement more projects, we need to invest in the people doing the work. Whether conserving landscapes, restoring waterways, or building with nature in urban areas, the Canadian Prairies need more investment in natural infrastructure."

Natural infrastructure involves the conservation, restoration, or enhancement of natural landscapes to provide specific results. For example, wetlands can naturally house excess water during floods; green roofs can help manage runoff; and forests, grasslands, and restored stream banks can replenish groundwater, mitigate flood- and drought-related risks, support fisheries, and provide opportunities for recreation. The sector employs a variety of workers, including landscape architects, ecologists, urban planners, stormwater managers, and environmental consultants.

For this report, researchers focused on the economic impact this sector can have across the Canadian Prairies.

"This report shows that investment in this sector will not only multiply the positive impact of natural infrastructure across the Prairies but can also drive broader economic growth," said Ben Clark, Director of Green Economy at Delphi.

"We also found that boosting investment in the natural infrastructure can provide real dividends to people across the Prairies—more jobs and higher GDP, better infrastructure, and an increase in resilience."

"We have municipalities across the Prairies that are struggling to keep pace with water infrastructure needs," Méthot added. "A greater investment in this sector will not only improve the lives of those on the Prairies but also provide more employment and add to the provincial GDP. Investing more in natural infrastructure just makes natural sense."

Several communities across the Prairies have implemented and had success with natural infrastructure projects, as outlined in the report. Projects include the following:

• The town of Okotoks, Alberta, installed a bioretention bed with underground water storage that supplies a solar-powered irrigation system. It reduces impurities in stormwater and reduces water demand.
• The Dry Lake project in the Gooseberry watershed (130 km southeast of Regina, Saskatchewan) saw 73 landowners over 18,000 acres work together to install 30 staging culverts to help control spring water release on agriculture fields and aid in the restoration and retention of the wetland habitat.
• Pelly's Lake, an engineered wetland in Manitoba, which provides CAD 2 million annually in clean water and flood protection benefits.
• Winnipeg's urban tree canopy, which covers 17% of the city and provides CAD 3.23 million annually in stormwater management by reducing runoff due to absorption.

IISD launched the NIWS initiative to bring together natural infrastructure experts from across the Prairies. The intention is to better support the implementation of natural infrastructure with a network of experts and resources and to engage with governments to develop stronger policies, investments, and decision-making processes to ensure that Canada's Prairie provinces are properly equipped to manage and maintain their water infrastructure. 

Contact

For more information or to schedule an interview to discuss these findings, please contact: [email protected]

Stockholm, November 8, 2023 – A major new report published today finds that governments plan to produce around 110% more fossil fuels in 2030 than would be consistent with limiting warming to 1.5°C, and 69% more than would be consistent with 2°C. 

This comes despite 151 national governments having pledged to achieve net-zero emissions and the latest forecasts which suggest global coal, oil, and gas demand will peak this decade, even without new policies. When combined, government plans would lead to an increase in global coal production until 2030, and in global oil and gas production until at least 2050, creating an ever-widening fossil fuel production gap over time.  

The report’s main findings include:

• Given risks and uncertainties of carbon capture and storage and carbon dioxide removal, countries should aim for a near total phase-out of coal production and use by 2040, and a combined reduction in oil and gas production and use by three-quarters by 2050 from 2020 levels, at a minimum.
• While 17 of the 20 countries featured have pledged to achieve net-zero emissions — and many have launched initiatives to cut emissions from fossil fuel production activities — none have committed to reduce coal, oil, and gas production in line with limiting warming to 1.5°C.
• Governments with greater capacity to transition away from fossil fuels should aim for more ambitious reductions and help support the transition processes in countries with limited resources. 

The 2023 Production Gap Report: “Phasing down or phasing up? Top fossil fuel producers plan even more extraction despite climate promises” is produced by Stockholm Environment Institute (SEI), Climate Analytics, E3G, International Institute for Sustainable Development (IISD) and the UN Environment Programme (UNEP). It assesses governments’ planned and projected production of coal, oil, and gas against global levels consistent with the Paris Agreement’s temperature goal.

“Governments are literally doubling down on fossil fuel production; that spells double trouble for people and planet,” said UN Secretary-General António Guterres. “We cannot address climate catastrophe without tackling its root cause: fossil fuel dependence. COP28 must send a clear signal that the fossil fuel age is out of gas — that its end is inevitable. We need credible commitments to ramp up renewables, phase out fossil fuels, and boost energy efficiency, while ensuring a just, equitable transition.”

July 2023 was the hottest month ever recorded, and most likely the hottest for the past 120,000 years, according to scientists. Across the globe, deadly heat waves, droughts, wildfires, storms, and floods are costing lives and livelihoods, making clear that human-induced climate change is here. Global carbon dioxide emissions — almost 90% of which come from fossil fuels — rose to record highs in 2021–2022.  
  
“Governments’ plans to expand fossil fuel production are undermining the energy transition needed to achieve net-zero emissions, throwing humanity’s future into question,” said Inger Andersen, Executive Director of UNEP. “Powering economies with clean and efficient energy is the only way to end energy poverty and bring down emissions at the same time." 

“Starting at COP28, nations must unite behind a managed and equitable phase-out of coal, oil and gas — to ease the turbulence ahead and benefit every person on this planet,” she added.

The 2023 Production Gap Report provides newly expanded country profiles for 20 major fossil-fuel-producing countries: Australia, Brazil, Canada, China, Colombia, Germany, India, Indonesia, Kazakhstan, Kuwait, Mexico, Nigeria, Norway, Qatar, the Russian Federation, Saudi Arabia, South Africa, the United Arab Emirates, the United Kingdom of Great Britain and Northern Ireland, and the United States of America. These profiles show that most of these governments continue to provide significant policy and financial support for fossil fuel production.
 
“We find that many governments are promoting fossil gas as an essential ‘transition’ fuel but with no apparent plans to transition away from it later,” says Dr. Ploy Achakulwisut, a lead author on the report and SEI research fellow. “But science says we must start reducing global coal, oil, and gas production and use now — along with scaling up clean energy, reducing methane emissions from all sources, and other climate actions — to keep the 1.5°C goal alive.” 
  
 Despite being the root cause of the climate crisis, fossil fuels have remained largely absent from international climate negotiations until recent years. At COP26 in late 2021, governments committed to accelerate efforts towards “the phasedown of unabated coal power and phase-out of inefficient fossil fuel subsidies”, though they did not agree to address the production of all fossil fuels.

“COP28 could be the pivotal moment where governments finally commit to the phase-out of all fossil fuels and acknowledge the role producers have to play in facilitating a managed and equitable transition,” says Michael Lazarus, a lead author on the report and SEI US Centre Director. “Governments with the greatest capacities to transition away from fossil fuel production bear the greatest responsibility to do so while providing finance and support to help other countries do the same.”
  
More than 80 researchers, from over 30 countries, contributed to the analysis and review, spanning numerous universities, think tanks and other research organizations.

Reactions to the 2023 Production Gap Report

"The writing’s on the wall for fossil fuels. By mid-century we need to have consigned coal to the history books, and slashed oil and gas production by at least three quarters — well on the way to a full fossil phase-out. Yet despite their climate promises, governments plan on ploughing yet more money into a dirty, dying industry, while opportunities abound in a flourishing clean energy sector. On top of economic insanity, it is a climate disaster of our own making.”

– Dr. Neil Grant, Climate and Energy Analyst, Climate Analytics

"Despite governments around the world signing up to ambitious net zero targets, global coal, oil and gas production are all still increasing while planned reductions are nowhere near enough to avoid the worst effects of climate change. This widening gulf between governments' rhetoric and their actions is not only undermining their authority but increasing the risk to us all. We are already on track this decade to produce 460% more coal, 82% more gas, and 29% more oil than would be in line with the 1.5°C warming target. Ahead of COP28, governments must look to dramatically increase transparency about how they will hit emissions targets and bring in legally binding measures to support these aims."

– Dr. Angela Picciariello, Senior Researcher, IISD

“With demand for coal, oil and gas set to peak this decade even without additional policies, it’s clear that the new economic reality is becoming one of clean energy growth and fossil fuel decline — yet governments are failing to plan for the reality of the inevitable energy transition. Continuing investments into new fossil fuel production as global demand for coal, oil and gas narrows is a near term economic gamble for all but the cheapest producers. And climate damages will be aggravated further unless we stop fossil fuel expansion now. The time is now for governments to take control of the clean energy transition and align their policies with the reality of what’s needed for a climate-safe world.“ 

– Katrine Petersen, Senior Policy Advisor at E3G

Notes to Editors

About the Production Gap Report 

Modelled after the UNEP’s Emissions Gap Report series — and conceived as a complementary analysis — this report conveys the large discrepancy between countries' planned fossil fuel production and the global production levels consistent with limiting warming to 1.5°C and 2°C.

About the Stockholm Environment Institute

Stockholm Environment Institute is an independent, international research institute that has been engaged in environment and development issues at local, national, regional and global policy levels for more than a quarter of a century. SEI supports decision-making for sustainable development by bridging science and policy.  

About Climate Analytics

Climate Analytics is a global climate science and policy institute engaged around the world in driving and supporting climate action aligned to the 1.5°C warming limit. We connect science and policy to empower vulnerable countries in international climate negotiations and inform national planning with targeted research, analysis and support.

About E3G

E3G is an independent European climate change think tank accelerating the transition to a climate safe world. E3G is made up of world leading strategists on the political economy of climate change, dedicated to achieving a safe climate for all. E3G builds cross-sectoral coalitions to achieve carefully defined outcomes, chosen for their capacity to leverage change. E3G works closely with like-minded partners in government, politics, business, civil society, science, the media, public interest foundations and elsewhere. E3G is making the necessary possible.

About the United Nations Environment Programme (UNEP)

UNEP is the leading global voice on the environment. It provides leadership and encourages partnership in caring for the environment by inspiring, informing and enabling nations and peoples to improve their quality of life without compromising that of future generations. 

October 27, 2023 − Global food systems are near breaking point.

The world has faced an onslaught of crises in the last 5 years. The COVID-19 pandemic. Climate change. War and conflict. Agrifood systems have been hit hard—with millions more people now facing hunger and malnutrition.

“Food systems need to change,” says Sarah Brewin, an expert in agriculture and investment at the International Institute for Sustainable Development (IISD). “They need to adapt to a changing—and volatile—context. They need to address rather than exacerbate social and environmental challenges. And to do that, they require responsible investment.”

For over two decades, investments in agriculture have been causing harm to vulnerable groups and environments. Local communities have been forced to relocate, losing their homes and livelihoods. Ecosystems and water sources have been damaged. Local food security has been jeopardized. Decent jobs that have been promised have failed to materialize, in some cases leading to social unrest. 

Through their work supporting developing country governments, IISD experts see imbalanced contract arrangements that exacerbate rather than mitigate these issues.

“IISD has launched a new legal tool to support investments in agriculture that help deliver—not derail—sustainable development objectives. This is part of a long-term initiative of IISD to develop innovative tools to support developing countries to enhance their legal frameworks for responsible agricultural investment,” says Nyaguthii Maina, an international law expert at IISD.

The IISD Model Contract Clauses for Responsible Investment in Agriculture offer agricultural investment negotiators, state lawyers, and policy-makers a series of user-friendly, customizable contract provisions to help them design responsible and effective agricultural investment contracts. Such contracts help supplement gaps in domestic laws, not replace them, to get food systems back on track.

Bringing together leading guidance, principles, and best practices on responsible agricultural investment, the provisions are designed to reinforce gender equity and to promote a just and equitable transition toward more climate-resilient production practices. 

Motoko Aizawa, author, independent researcher, and former sustainability advisor for the World Bank, is joining IISD for the launch of the Model Clauses during IISD’s Investment Policy Forum in Panama City today. “The IISD Model Contract Clauses for Responsible Investment in Agriculture are a valuable resource for policy-makers,” she says. “A timely and useful legal tool to add to our arsenal to enhance the regulatory environment governing investment in agriculture and food systems.”

The full suite of model contract provisions is available online. Governments can also download a customizable template, and those seeking support and advice on how to use the IISD Model Clauses can request IISD’s advisory and capacity development services.

Contact

For more information or to set up an interview, contact [email protected].

September 13, 2023 − Trade between developing countries and regions—known as “South–South trade”—is growing rapidly. In the past couple of decades, its value has grown almost tenfold, from USD 600 billion in 1995 to USD 5.3 trillion in 2021.

A new report from the International Institute for Sustainable Development (IISD) explores how governments in developing countries are using voluntary sustainability standards (VSSs) in their trade policies to ensure this growth benefits small-scale producers, communities, and the environment.

VSSs are private or public initiatives that set requirements for producing, consuming, and trading products more sustainably. However, small-scale producers in developing countries can face challenges participating in them, such as high certification costs and a lack of support, incentive, or information on how to adopt their practices. 

“Governments in developing countries are increasingly recognizing the benefits of working with VSSs to promote trade that supports more sustainable production practices while also addressing some of the concerns associated with their adoption,” said Steffany Bermúdez, Policy Advisor, IISD.

The report outlines five examples of developing country governments and regional blocs in the Global South that are integrating VSSs in trade policy and explores how successful they have been. From a Memorandum of Understanding seeking to boost the trade of organic certified products between Chile and Brazil to the development of a recognition system for VSSs across the African continent, they illustrate the role that governments can play in enhancing VSSs’ potential to deliver positive sustainability outcomes and generate trade opportunities for small-scale farmers and small and medium-sized enterprises (SMEs.)

“We found that integrating VSSs in South–South trade policies can help reduce some barriers to trade for small-scale producers and SMEs,” said Florencia Sarmiento, Policy Analyst, IISD. “It can also encourage trust and recognition in VSSs, lower the costs of compliance, increase demand for VSS-compliant products, and promote harmonization between different standards.”

While the impacts of the examples showcased are context dependent, they suggest that national or bilateral initiatives tend to have more success, likely because regional initiatives take longer to develop and require consensus among a greater number of partners with competing interests. However, including VSSs in regional processes has greater potential to increase trade within—and potentially between—regions in the Global South.

The report concludes with recommendations on how to unlock VSSs’ potential to increase and promote more sustainable practices and enhance market access for smallholders and SMEs through trade policy. Experts will be presenting and discussing the findings of the report during a public webinar on September 27.

Contact

For more information or to set up an interview, contact [email protected].

About the State of Sustainability Initiatives

IISD’s State of Sustainability Initiatives advances sustainable and inclusive value chains by providing credible and solutions-oriented research, dialogue, and strategic advice for decision-makers about voluntary sustainability standards and other supportive initiatives.