Governing Approaches Ensuring Environmental Protection: a Brazilian Perspective OECD 2-3 December 2004 Paris - France

Historical Perspectives Environmental Protection: developing countries ≠ developed countries Developed countries : Exploitation of natural resources largely acknowledged and in place. Basic social problems already addressed. Developing countries: Natural Resources abundant. Crucial social and poverty issues.

Developing Countries: Main Challenges Ensure economic growth and poverty reduction. Create large scale opportunities for society: employment and revenue. Address infrastructure issues such as roads, railroads, ports, energy facilities, hospitals, schools, water and sanitation treatments, etc. Meet such goals whereas reducing environmental impacts and conserving the environment.

Developing Countries and Technology How to provide economic growth and guarantee environmental protection? Innovation technology plays a central role in the resolution of this conflict. Create new products and services and transforming industrial processes using technology may allow achieving less damage to the environment.

Developing Countries and Command & Control Command & Control is a necessary regulatory baseline all together; For Developing Countries they do not suffice if taken in isolation; In such countries they cannot be taken in isolation.

Developing Countries and Command & Control The perception that the private sector is a partner in the quest for sustainable development: beyond a C&C blue print; A realistic approach on the needs and priorities of these countries; Flexible and creative instruments leading to environmental compliance: voluntary reports, simplified licensing procedures, self-audits, etc.

Brazil: Need for Macro and Regional Planning Planning instruments are in great need of inclusion within Brazilian's Government agenda. A sound planning procedure would address what the countries priorities are and where they should be located. Proper planning on the Government's part would entail long term, scientific and clear-cut evidence for all stakeholders.

Planning: Some Advantages Adopting planning instruments such as, i.e., the Economic-Ecological Zoning results in: Diminished claims of misuse of areas and natural resources. Long term certainties applied across the board. More detailed perception of industries as potential partners for sustainable development.

Other Governing Approaches Ensuring Environmental Compliance Private Sector perspective: Cost-effectiveness: informal reports, voluntary compliance systems. Reduction of bureaucracy in licensing processes. Economic incentives for cleaner production. Market induction for sound environmental products with scale generation.

CONCLUSION Developing countries are faced with the challenge of economic growth, poverty reduction and environmental protection. The private sector plays a major role in meeting all three aspects mentioned. Command & Control instruments are not enough to properly address such challenge. Planning instruments (ZEE, etc.) are in great need of inclusion in Brazilian's Government agenda.

Confederação Nacional da Indústria Brazilian National Confederation of Industry http://www.cni.org.br Maurício Mendonça Jorge Coordinator of Industrial Competitiveness Unit Phone: + 55 61 317-9473 mmendonca@cni.org.br