Report

Global Market Report: Coffee prices and sustainability

This report looks closely at sustainable production and consumption trends in the coffee sector, focusing on how voluntary sustainability standards (VSSs) can make a difference in producers’ livelihoods by, for example, raising farm gate prices or supporting climate resilience and soil and water conservation.

September 29, 2022

Since its discovery more than 1,000 years ago in Ethiopia, coffee has grown to become a staple for many people. About 125 million people earn their livelihoods in the coffee sector. Many millions more are warmed and energized by the popular brewed beverage.

Voluntary sustainability standards (VSSs) have become well established in the global coffee sector since they emerged over 30 years ago. Roasters, retailers, and consumers in many markets regularly use standards to distinguish between conventionally produced coffee and more sustainable alternatives.

This report looks closely at sustainable production and consumption trends in the coffee sector, focusing on how VSSs can make a difference in producers’ livelihoods by, for example, raising farm gate prices or supporting climate resilience and soil and water conservation. It includes a detailed analysis and recommendations for actors throughout the value chain on how to increase farmers’ prices and income while providing more value for their sustainably grown coffee.

Report details

Topic
Food and Agriculture
Standards and Value Chains
Project
State of Sustainability Initiatives
Impact area
Nature
Publisher
IISD
Copyright
IISD, 2022
Report

Soumission à la procedure de consultation sur l’Accord entre le Conseil fédéral suisse et le Gouvernement de la République d’Indonésie concernant la promotion et la protection réciproque des investissements (API)

Cette soumission est basée sur la version de l’API telle que publiée par le Département fédéral de l'économie, de la formation et de la recherche le 18 mai 2022

Le nouvel accord de protection des investissements (API) entre la Suisse et l’Indonésie du 24 mai 2022 : Des innovations majeures remarquables, mais des aspects importants restent à améliorer.

 

September 19, 2022

La Suisse et l’Indonésie ont signé, le 24 mai 2022, un accord de protection des investissements (API). Intervenant dans le contexte général des réformes du régime international des investissements et dans le cadre spécifique de réformes des politiques en matière d’investissement des deux pays, cet accord s’inscrit en principe dans la nouvelle génération d’API. Ce document fournit une analyse sommaire d'une sélection d’articles de cet API, à la suite d'un processus inédit de consultation d'un API conclu par la Suisse avant sa ratification. Tout en mentionnant les points innovants, l’analyse met l’accent sur des articles problématiques ou qui pourraient être renforcés. L’objectif est d’attirer l’attention sur les aspects qui pourraient être améliorés à la lumière des bonnes pratiques internationales dans les futurs API négociés ou renégociés de la Suisse. À cet effet, la seconde partie du document fournit des options, ainsi que des références à d’autres instruments, pour le renforcement de certaines approches adaptées dans l’API.


The new investment protection agreement (IPA) between Switzerland and Indonesia of May 24, 2022: Major innovations, but important aspects remain to be improved.

Switzerland and Indonesia signed an IPA on May 24, 2022. This agreement is, in principle, part of the new generation of IPAs taking place in the general context of reforms of the international investment regime and within the specific framework of investment policy reforms in both countries. This paper provides a summary analysis of selected articles of this IPA after Switzerland concluded an unprecedented consultation process for an IPA prior to its ratification. While mentioning innovative points, the analysis highlights articles that are problematic or could be strengthened. The objective is to draw attention to aspects that could be improved in light of international best practices in future negotiated or renegotiated IPAs in Switzerland. To this end, the second part of the paper provides options, as well as references to other instruments, for the strengthening of certain suitable approaches in the IPA.

Report details

Topic
Investment Law & Policy
Publisher
IISD
Copyright
IISD, 2022
Report

Achieving Sustainable Food Systems in a Global Crisis: Nigeria

This report presents an evidence-based and costed country roadmap for effective public interventions to transform agriculture and food systems in Nigeria in a way that ends hunger, makes diets healthier and more affordable, improves the productivity and incomes of small-scale producers, and mitigates and adapts to climate change. The report is part of a project that explores the interaction between achieving healthy diets, reducing hunger and poverty, and addressing climate change within the evolving food systems in three countries—Ethiopia, Malawi, and Nigeria. 

August 31, 2022

Agriculture and food systems in Nigeria face key challenges.They need to simultaneously provide sufficient food for all, improve incomes and productivity for small-scale producers, make diets healthier and more affordable, reduce greenhouse gas (GHG) emissions, and build capacities needed to adapt to climate change. However, in the past few years, as a result of internal conflict, low oil prices, an economic slowdown, COVID-19—and now rising food and fertilizer prices, made worse by the Russian invasion of Ukraine—hunger and poverty have been rising steeply, healthy diets are unattainable for most people, and the impacts of climate change are experienced more frequently and severely.

Hunger and poverty are projected to keep rising until 2030. Even among those who do get enough calories, many will be malnourished due, in part, to the unaffordability of diets that both provide sufficient calories and satisfy the complex nutritional requirements of human bodies. The demographic dynamics in Nigeria will continue to exacerbate these challenges, with the population expected to grow from 206 million people in 2020 to 263 million people in 2030. As the population and incomes grow in Nigeria, so too will demand for food and more diversity in food choices, which will exacerbate environmental challenges. At the same time, Nigeria is home to some of the global public goods that are needed to address climate change, preserve biodiversity, and achieve the United Nations Sustainable Development Goals (SDGs).Transforming food systems to deliver on hunger, poverty, healthy diets, and climate change while safeguarding global public goods will require significant efforts and resources and therefore global solidarity—in other words, more external aid.

To support the transformation to sustainable food systems in Nigeria, this report aims to equip country-level decision makers and the donor community with knowledge regarding the cost of sustainable food system transformation; evidence on which to base decisions regarding where and how to make investments to simultaneously contribute to access to sufficient, safe, and nutritious food (SDG 2.1 and 2.2); smallholder productivity and incomes (SDG 2.3); and environmentally sustainable agriculture production (SDG 2.4).

The report combines a review of country-level policy documents and peer-reviewed literature with a microeconomic analysis of changing diets, food consumption habits, and nutrition; three rounds of consultations with in-country stakeholders; and the country-level findings for Nigeria from the project Ceres2030: Sustainable Solutions to End Hunger. The findings are integrated into a computable general equilibrium (CGE) model that estimates the cost of ending hunger, doubling the income of small-scale producers, and transitioning to healthier diets while protecting the climate and investing in climate change adaptation. The report is part of a project that explores the interactions between reducing hunger and poverty, achieving healthy diets, and addressing climate change within the evolving food systems in three countries—Ethiopia, Malawi, and Nigeria.

Report details

Report

Achieving Sustainable Food Systems in a Global Crisis: Malawi

Ceres2030 Deep Dives into the Nexus of Food Systems, Climate Change, and Diets

This report presents an evidence-based and costed country roadmap for effective public interventions to transform agriculture and food systems in Malawi in a way that ends hunger, makes diets healthier and more affordable, improves the productivity and incomes of small-scale producers, and mitigates and adapts to climate change. The report is part of a project that explores the interaction between achieving healthy diets, reducing hunger and poverty, and addressing climate change within the evolving food systems in three countries—Ethiopia, Malawi, and Nigeria. 

August 31, 2022

Agriculture and food systems in Malawi face key challenges. They need to simultaneously provide sufficient food for all, improve incomes and productivity for small-scale producers, make diets healthier and more affordable, reduce greenhouse gas (GHG) emissions, and build capacities needed to adapt to climate change. Yet, in the past few years, as a result of climate change, economic slowdowns, and COVID-19—and now rising food, fertilizer, and energy prices made worse by the Russian invasion of Ukraine—hunger and poverty have been on the rise, healthy diets are unattainable for most people, and the impacts of climate change are experienced more frequently and severely.

Even among those who do get enough calories, many will be malnourished due, in part, to the unaffordability of diets that both provide sufficient calories and satisfy the complex nutritional requirements of human bodies. The demographic dynamics in Malawi will continue to exacerbate these challenges, with the population expected to grow from 19.1 million people in 2020 to 25.8 million people in 2030. As the population and incomes grow in Malawi, so too will demand for food and more dietary diversity, which will exacerbate environmental challenges. At the same time, Malawi is home to some of the global public goods that are needed to address climate change, preserve biodiversity, and achieve the Sustainable Development Goals (SDGs). Transforming food systems to deliver on hunger, poverty, healthy diets, and climate change while safeguarding global public good will require significant efforts and resources—and therefore global solidarity; in other words, more domestic support and more external aid.

To support the transition to sustainable food systems in Malawi, this report aims to equip country-level decision-makers and the donor community with knowledge regarding the cost of sustainable food system transformation; evidence on which to base decisions regarding where and how to make investments to contribute to access to simultaneously sufficient, safe, and nutritious food (SDG 2.1 and 2.2); smallholder productivity and incomes (SDG 2.3); and environmentally sustainable agriculture production (SDG 2.4).

The report combines a review of country-level policy documents and peer-reviewed literature with a microeconomic analysis of changing diets, food consumption habits, and nutrition; four rounds of consultations with in-country stakeholders; and the country-level findings for Malawi from the project, Ceres2030: Sustainable Solutions to End Hunger. The findings are integrated into a computable general equilibrium (CGE) model, which estimates the cost of ending hunger, doubling the income of small-scale producers, and transitioning to healthier diets while protecting the climate and investing in climate change adaptation. The report is part of a project that explores the interactions between reducing hunger and poverty, achieving healthy diets, and addressing climate change within the evolving food systems in three countries—Ethiopia, Malawi, and Nigeria.

Report details

Report

Illicit Financial Flows and Conflict in Artisanal and Small-Scale Gold Mining: Burkina Faso, Mali, and Niger

This report examines artisanal mining in border areas plagued by conflict and presents recommendations for policy-makers in Burkina Faso, Mali, and Niger.

September 13, 2022

Artisanal and small-scale mining is an essential component of West African economies. Millions of people within the region depend on it, either directly or indirectly, for their livelihoods, and it is responsible for a significant proportion of the region's mineral and metal production. When effectively governed and supported, the sector offers an excellent opportunity to advance national and regional sustainable development goals, including through the mobilization of national revenues and the creation of employment for the most vulnerable.

The 2012 discovery of a rich vein of gold stretching across the Sahel region from east to west and the subsequent gold rush coincided with a rise in religious extremism, conflict, and crime in the region, particularly in the three countries: Niger, Burkina Faso, and Mali.

Illegal activities, including armed violence, terrorism, and organized crime, have exacerbated governance problems in parts of the three countries; large areas at the confluence of the three borders are now beyond the control of governments and are expanding. There is an urgent need to support government efforts to restore stability, protect their citizens and the environment, formalize mining operations, reduce corruption, and increase tax revenues from the sector.

This report presents an analysis of the context of artisanal mining in border areas currently plagued by violence and conflict. The analysis focuses on three key areas:

  • The current regional and national governance frameworks for artisanal and small-scale gold mining
  • Illicit financial flows associated with the sector
  • The links between conflict, crime, and artisanal gold mining

Finally, the report offers recommendations to the governments of Burkina Faso, Mali, and Niger on how they can strengthen their response to the threat of illicit financial flows, conflict, and crime associated with artisanal and small-scale gold mining.

Report

India's State-Owned Energy Enterprises, 2020-2050

Identifying evidence-based diversification strategies

India has positioned itself as a strong advocate of climate action among emerging economies, aiming to significantly scale up renewable energy by 2030 and to reach net-zero emissions by 2070. The country’s energy state-owned enterprises, known as public sector undertakings (PSUs), will have a key role to play as India gears up to become net-zero by 2070—yet, many of them remain heavily dependent on coal. This study provides an evidence-based approach to identify diversification strategies that will prepare these firms for the future while continuing to bring revenues to the government, creating jobs, and supporting local communities.

September 12, 2022
  • Three of India’s biggest central state-owned enterprises—Coal India Limited (CIL), NTPC, and Indian Railways—can help the country reach its climate goals while seizing a share of the clean energy market and mitigating an estimated 22%–28% cash flow gap by 2050.

  • Our evidence-based approach shows how state-owned companies can be part of India’s clean energy future while bringing revenues to the government, creating jobs, and supporting local communities.

  • Seven out of 10 largest state-owned firms in India are from the energy sector. They will play a key role in helping India become net-zero while diversifying their businesses and avoiding potential revenue gaps.

This study uses PSUs in the coal sector to show how energy businesses can identify their future uncertainties while also finding opportunities in the changing energy system. Taking a few concrete measures in the next few years to diversify their businesses can allow these firms—and other similar PSUs in India—to alleviate future uncertainty and avoid potential revenue gaps.

The companies can follow these six steps to ensure they are part of India’s clean energy future:

  1. Create a net-zero roadmap with interim targets, which can become a guide for future decisions.
  2. Develop in-house estimates on transition business risks.
  3. Identify new clean energy business opportunities and become early adopters of clean energy technologies.
  4. Set clean energy targets in proportion to anticipated change and periodically increase the ambition of these targets.
  5. Build strategic partnerships with other PSUs to share expertise and invest in research and development to build internal capacity in new and emerging clean energy technologies.
  6. Make ambitions for the transition public to send positive market signals.

The report encourages all state-owned energy enterprises to use an evidence-based approach to produce their own detailed internal assessments and a strategy for transition into a clean energy business.

Report details

Topic
Energy
Region
India
Impact area
Climate
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2022
Report

Voluntary Sustainability Standards in East Africa

How can adopting voluntary sustainability standards for staple crop production help achieve key East African policy objectives?

September 6, 2022

Agriculture is a pillar of the economy in East Africa, employing as much as 80% of the population and representing 25% of GDP. Expanding the sector has great potential to improve livelihoods and bring widespread prosperity to people in the region.

Partner States of the East African Community (EAC)—Burundi, Kenya, the Democratic Republic of the Congo, Rwanda, South Sudan, Tanzania, and Uganda—are pursuing regional agricultural objectives, as defined in policies developed by the EAC that seek to:

  • Maintain and increase agricultural productivity
  • Overcome trade barriers to improve intra-regional trade
  • Build resilience to climate change.

IISD’s State of Sustainability Initiatives’ first regional report, Voluntary Sustainability Standards (VSSs) in East Africa, shows that adopting standards to produce staple crops like beans, maize, rice, and wheat can help achieve these regional policy objectives while protecting vital ecosystems, managing scarce resources efficiently, and supporting workers' livelihoods and rights. There is a great opportunity to use VSSs to sustainably increase the production and trade of staple crops in East Africa. Importantly, smallholder farmers stand to benefit from this growth—they form a large part of the supplier base and depend on staple crops for livelihoods and personal consumption. At the same time, such growth will reduce import dependency in the region.

This research shows that sustainability standards can:

  • Incentivize climate-resilient practices, such as improving soil quality, using water more efficiently, integrating agro-forestry practices, and facilitating ecosystem restoration.
  • Help increase productivity among staple crop producers—for instance, by improving crop handling and storage practices so farmers can deal with mold contamination that threatens crops and by supporting access to high-quality inputs and related training.
  • Facilitate intraregional trade by encouraging producers to comply with relevant laws and regulations and by encouraging alignment between other standards and best practices—for instance, through their criteria on managing pests, disease outbreaks, and targeted chemical use.

Accordingly, the report includes recommendations for VSS bodies, the EAC, and its Partner States to support the use of standards to achieve sustainable agricultural growth in harmony with nature and communities. Publication Type

Report

Moving Beyond GDP: A Stock-Flow Approach To Measuring Wellbeing For The G20

An inclusive economic recovery from the pandemic and effective climate action will require concerted global policy efforts. To achieve this, the G20 countries need to move urgently beyond GDP and use a comprehensive approach to assessing national progress.

September 1, 2022
  • GDP continues to be the indicator most prioritized by decision-makers, although it is increasingly understood that wellbeing in the long run is determined not by the nation’s GDP (or market income) but by the portfolio of assets that make up its inclusive wealth.

  • GDP expansion is often associated with the deterioration of wealth, especially natural and social capital, and that these losses are not taken into account in assessing national progress through GDP

  • The creation and existence of wellbeing frameworks should not be limited to simple statistical exercises. It should aim at influencing policy making and eventually people’s quality of life in a tangible manner.

The proposed framework takes into consideration both stocks and flows and encompasses indicators of economic, as well as environmental, social, and human factors that are the basis for wellbeing in the long-term. Recommendations include convening a G20 study group, engaging statistical agencies, and shaping policies along these new measures. G20 countries are ideally positioned to lead on all of this.

Report

Moving Beyond GDP To Achieve The SDGs

World leaders increasingly believe it is time to move beyond GDP as the central measure of progress. At their 2018 meeting in Canada, Group of Seven heads recognized that GDP is “insufficient for measuring success.” In the same vein, the United Nations secretary-general wrote in 2021 that “it is time to collectively commit to complementary measurements”, calling our excessive reliance on GDP “a glaring blind spot in how we measure economic prosperity and progress.” This blind spot is one of the factors limiting the financing required to achieve the UN Sustainable Development Goals and realize the 2030 Agenda.

September 1, 2022
  • “Global decision-making is fixed on immediate gain, ignoring the long-term consequences of decisions.” —UN Secretary-General António Guterres

  • GDP might be “indispensable in short-run macroeconomic analysis and management [but] it is wholly unsuitable for…identifying sustainable development” —Sir Partha Dasgupta

  • The list of approaches that meet the requirements for moving #beyondGDP is not long. It is easy to conceive large indicator dashboards that may cover all dimensions of #wellbeing.

Among the handful of credible counterparts to GDP is inclusive wealth. Inclusive wealth measures the assets that underlie human wellbeing: natural, human, social, produced and financial capital. An increase in inclusive wealth signals an increase in wellbeing. Conversely, when inclusive wealth falls, wellbeing must fall as well. Inclusive wealth is, therefore, a powerful measure of sustainability.

Building on the recommendation of T20 Saudi Arabia, this policy brief calls for G20 countries to move beyond GDP by complementing it with inclusive wealth indicators by 2025. Doing so is key to unlocking the financing needed for the SGDs and achieving the 2030 Agenda. GDP drives decision-makers towards short-term thinking. Adding inclusive wealth to decision-makers’ toolboxes would ensure that long-term goals like the SDGs—and the funding to achieve them—are not forgotten.

Report

Principles-Based Social Taxonomy for Sustainable Investing

IISD developed a social taxonomy of business activities for a client country. It is based on the specific social and economic development vision and priorities of the country and aligned with international norms and best practices. Section 1 summarizes the context and construction of the social taxonomy as well as the lessons learned by IISD. Section 2 provides the actual social taxonomy proposal that was delivered to the client country.

August 18, 2022

The IISD designed a social taxonomy (system of classification) of business activities that promote social good and social governance improvements, both inspired by international norms and good practices, which were turned into minimum threshold-level activities that must be met for the user of the social taxonomy to assess its levels of contributions. The taxonomy has two sets of broad guiding principles (GPs): GP1 on promoting overall social well-being (enhancing positive social impacts) and GP2 on enhancing respect for human rights and enhanced company conduct (through company-level governance improvements on social issues).

The minimum threshold-level activities are a prerequisite for the application of GP1 and GP2. The threshold refers mostly to social safeguards, but also to minimum environmental safeguards, in an effort to create reference points between the social and environmental taxonomy and promote an integrated approach to achieving social and environmental sustainability.

To these foundational principles, IISD added a progressive system of implementation assessment that is designed to help companies move from a state of being out of compliance with domestic law to achieving international good practice, over time and at their own pace, using a colour-coded system.

For the dominant sectors in the client country, such as construction and real estate; utilities and infrastructure; finance and financial services; extractive; technology and telecommunications; education; healthcare; agriculture; and cross-sectoral activities, the taxonomy provides illustrative qualifying business activities that can contribute toward GP1 or GP2.

Report details