This paper explores the concept of financial sustainability and proposes a framework to analyze electricity sectors based on this model.

The concept of financial sustainability includes the ability of the electricity sector to recover costs, meet demand, make investments and operate according to environmental and social norms. This analytical framework consists of multiple indicators reflecting different aspects of the sector. The analysis is designed to initiate a discussion on electricity performance and possible reform priorities.

The United Nations and its Member States are currently crafting a post-2015 development agenda to build on the Millennium Development Goals.

Outcomes of previous UN Summits, including Rio+20 in 2012, have shown that the objective of shifting to sustainable consumption and production (SCP) patterns is central to achieving sustainable development. Negotiations on the post-2015 development agenda, and on the associated sustainable development goals (SDGs), indicate that there is strong interest in many Member States in embedding the objective of SCP in both. The present discussion paper provides insights into potential targets and indicators for SCP, based on the scientific literature, as well as on past and on-going international processes on sustainable development policy.

The global community was taken by surprise at the sharp rise of investor interest in agricultural land and water after the 2008 food crisis.

They responded with dozens of global and regional initiatives, helping governments, investors and communities respond, and turning the investor interest into an opportunity for rural development and poverty reduction. This policy brief provides an overview of the initiatives: their main features, strengths and weaknesses.

The IISD series of policy briefs on investment in agriculture is generously supported by the Swiss Agency for Development and Cooperation (SDC). 

Green industrial policy (GIP) is the pursuit by governments of national economic excellence in key green economy sectors, with a view to creating globally competitive domestic firms.

It differs in only a few respects from traditional industrial policy, most significantly in regards to the potential global environmental benefit that comes from private sector innovation and competition in these areas.

GIP is increasingly used by governments in both developed and developing countries, a trend that is likely to be reinforced in coming years by the desire to capture the environmental and economic benefits of green economy sectors.  However, as with traditional industrial policy, it is easy to implement policies that undermine rather than support the intended goals.

This report is one in a series that considers the lessons for GIP that can be learned from policies in the renewable energy sector.  The aim of the series is to provide policy-makers with research to support the development of cost-effective, well-targeted policies for the development of green industries.  The reports highlight how policies have worked, the outcomes of the policies and the lessons that have been learned.

This report focuses on the wind and solar sectors in India.  It reviews Indian policies for raising the share of renewables in the energy mix within the context of multiple social, economic and technological objectives.  Based on this analysis, the report concludes that “green” rather than “industrial” elements have been best supported by policy to date.  Impacts are most clearly seen in energy security and access, avoided health costs and abatement of GHG emissions, while the industrial policy element has fared poorly in comparison.  Marrying the two elements more completely will allow the benefits of a renewable energy manufacturing sector and environmental protection to be successfully realized.

View the other paper in this series, Stable Policies – Turbulent Markets The costs and benefits of promoting solar PV and wind energy.

This note summarizes IISD’s contribution to the Land Policy Initiative’s e-consultation and draft of guiding principles on large-scale land-based investment in Africa.

IISD strongly supports the process as it contributes to building a framework for investment in agriculture in Africa. IISD’s input includes a review of the draft document and various recommendations including suggested wording, references and interpretation of the draft document chapters.

This note summarizes IISD’s contribution to the Committee on World Food Security’s e-consultation on the zero draft of the principles for responsible agricultural investment (CFS-RAI).

IISD also participates in the process through the Civil Society Mechanism and strongly supports it as a path to creating a normative framework for investment in agriculture. IISD’s contribution to the zero draft includes an analysis and recommendations in the areas related to fostering responsible agricultural investments, and the roles and responsibilities of the relevant stakeholders. In addition, input is provided to establish whether the zero draft achieves the desired outcome to promote investment in agriculture, thereby contributing to food security, including the right to adequate food in the context of national food security. Finally, the note provides an analysis of the structure and language used, and recommendations on the next steps in the use and implementation of the CFS-RAI principles by the different stakeholders.

China’s growing inward supply chains provide commodities, goods, technologies and services critical to domestic consumption and to export industries.

They are increasingly shaping global markets and local economies for trading partners. This trade brings benefits for exporting countries, but can exacerbate a range of social and environmental and governance problems (collectively labelled “sustainability” issues) such as pollution and climate change, biodiversity loss, and conflict over access to water, land and other natural resources in supplier countries. Key concerns over issues such as “land grabbing,” “conflict minerals” and “the natural resource curse” highlight the complex nature of issues that involve governments, communities and investors across national boundaries, and in areas of poor governance.

It is increasingly recognized that there is a nexus of interactions between such sustainability issues, and exposure to hazards of supply disruption for importers. The relationship is not direct but is mediated through public institutions and regulations, markets, societies and ecosystems. The nexus varies between companies, sectors and over time and can affect the “accessibility” of resources (for example, through natural disasters, social protests or export bans in exporting countries), “affordability” (through price rises) or the “acceptability” of resources (in relation to consumer and public expectations).

Supply chain sustainability issues are strategic risks for China. China’s rising imports make it both vulnerable to supply chain risks, and also potentially a key player in developing more resilient and sustainable production practices and effective institutions in the markets where it trades.

A key response to these risks internationally has been the development of supply chain sustainability standards addressing complex issues, such as conflict minerals, security, land grabbing and natural resource revenue governance.

Such private, voluntary and collectively developed standards are an increasingly important part of the international market, enabling companies to secure their reputation, professionalize sustainability-related supply chain risk management and collaborate with others to solve common problems.

There is a gap in the strategic management of these risks. While Chinese companies and government ministries are engaging with these issues and standards, it is in a limited, cautious and tactical way without an overall national strategy. This leaves Chinese enterprises and the Chinese economy exposed to poorly understood systemic risks due to natural hazards, local conflict and resource nationalism, with individual public agencies and enterprises often acting without adequate coordination or broader guidance.

This paper outlines and tests a commodity-by-commodity framework for assessing sustainability risks and vulnerability for importers. The framework is designed to be applied both at the enterprise (micro) level and at the national (macro) level. The assessment methodology was tested through a desk study looking at two commodities: copper and palm oil, at both an enterprise and a national (China) level.

It is clear from international and Chinese experience that there are policy measures that can be taken to support better management of supply chain risks. This paper outlines five policy steps, which could be targeted to key product and country risks, and also makes an overarching recommendation to pursue these as part of a strategic approach.

An overarching approach is needed for China’s international supply footprint to become part of its vision for resilient and sustainable development. One of the most notable findings from the discussions and consultations in developing this project is that there is no ministry or department with an overall vision and mandate for understanding China’s import footprint and how it can be managed more effectively. Taking strong action depends on there being an overall vision articulated as part of the broader view of development. The National Development and Reform Commission could consider developing a broader goal and metric of performance on supply chain sustainability, as part of the national planning process in the lead up to the 13th five-year plan, and as part of China’s development as an “ecological civilization.”

The International Institute for Sustainable Development is committed to working in and with China to advance sustainable development, and views the area of inbound supply chains as a key strategic opportunity to achieve this mutual goal.

China’s large and growing inbound supply chains are among the most direct ways in which China’s rise impacts economies worldwide.

For exporting countries this trade brings economic benefits such as employment, income and investment, but can also be associated with social and environmental (or “sustainability”) problems. Negative impacts on land, water, air, biodiversity and communities can translate back into supply chain problems for China, whether through short-term disruptions or the broader impact on China’s “brand” in international markets, which can affect the ability of Chinese enterprises to access international capital, resources, markets and talent.

China’s strategic concerns to address resource scarcity and build an “ecological civilization” make effective management of the social and environmental footprint of inbound supply chains increasingly critical. Sustainability risks therefore should count for enterprises and policy-makers concerned with China’s inbound supply chains. Yet for most companies operating in China, sustainability risks in inbound supply chains are poorly understood and often inadequately managed.

This initiative of the International Institute for Sustainable Development, supported by the U.K. Government’s Department for International Development (DFID), is intended to help overcome this gap. The project:

• Developed and tested a methodology for assessing the relationship between sustainability and security of supply risks in inbound supply chains.
• Undertook two pilots to test the methodology, based on desk research, looking at the copper and palm oil supply chains.
• Surveyed and convened discussions with business people, policy-makers, academics, and non-governmental organizations to test the concepts, methodology and findings, and to identify policy-relevant conclusions.

This paper, which outlines the copper pilot study, is complemented by papers on the methodology and another pilot study on palm oil. These three input papers feed into the overall synthesis paper, which integrates the overall findings and draws out conclusions and policy recommendations.

China’s large and growing inbound supply chains are among the most direct ways in which China’s rise impacts economies worldwide.

For exporting countries this trade brings economic benefits such as employment, income and investment, but can also be associated with social and environmental (or “sustainability”) problems. Negative impacts on land, water, air, biodiversity and communities can translate back into supply chain problems for China, whether through short-term disruptions or the broader impact on China’s “brand” in international markets, which can affect the ability of Chinese enterprises to access international capital, resources, markets and talent.

China’s strategic concerns to address resource scarcity and build an “ecological civilization” make effective management of the social and environmental footprint of inbound supply chains increasingly critical. Sustainability risks therefore should count for enterprises and policy-makers concerned with China’s inbound supply chains. Yet for most companies operating in China, sustainability risks in inbound supply chains are poorly understood and often inadequately managed.

This initiative of the International Institute for Sustainable Development, supported by the U.K. Government’s Department for International Development (DFID), is intended to help overcome this gap. The project:

• Developed and tested a methodology for assessing the relationship between sustainability and security of supply risks in inbound supply chains.
• Undertook two pilots to test the methodology, based on desk research, looking at the copper and palm oil supply chains.
• Surveyed and convened discussions with business people, policy-makers, academics, and non-governmental organizations to test the concepts, methodology and findings, and to identify policy-relevant conclusions.

This paper, which outlines the methodology, is therefore complemented by papers on the two pilots. These three input papers feed into the overall synthesis paper, which integrates the overall findings and draws out conclusions and policy recommendations.

China’s large and growing inbound supply chains are among the most direct ways in which China’s rise impacts economies worldwide.

For exporting countries this trade brings economic benefits such as employment, income and investment, but can also be associated with social and environmental (or “sustainability”) problems. Negative impacts on land, water, air, biodiversity and communities can translate back into supply chain problems for China, whether through short-term disruptions or the broader impact on China’s “brand” in international markets, which can affect the ability of Chinese enterprises to access international capital, resources, markets and talent.

China’s strategic concerns to address resource scarcity and build an “ecological civilization” make effective management of the social and environmental footprint of inbound supply chains increasingly critical. Sustainability risks therefore should count for enterprises and policy-makers concerned with China’s inbound supply chains. Yet for most companies operating in China, sustainability risks in inbound supply chains are poorly understood and often inadequately managed.

This initiative of the International Institute for Sustainable Development, supported by the U.K. Government’s Department for International Development (DFID), is intended to help overcome this gap. The project:

• Developed and tested a methodology for assessing the relationship between sustainability and security of supply risks in inbound supply chains.
• Undertook two pilots to test the methodology, based on desk research, looking at the copper and palm oil supply chains.
• Surveyed and convened discussions with business people, policy-makers, academics, and non-governmental organizations to test the concepts, methodology and findings, and to identify policy-relevant conclusions.

This paper, which outlines the findings of the palm oil pilot, is therefore complemented by a paper on the copper pilot, and a technical paper on the methodology. These three input papers feed into the overall synthesis paper, which integrates the overall findings and draws out conclusions and policy recommendations.