Ecological debt: Results of the core research Erik Paredis Centre for Sustainable Development – Ghent University CDO-VODO Conference, Brussels, 18 May 2004 ‘The Concept of Ecological Debt: its Meaning and Applicability in International Policy’

Umicore and ‘ecological debt’ 23 April 2004: agreement between Umicore and Flemish government for paying ‘environmental liabilities’ Sanitation of soil and groundwater in its four Flemish sites Sanitation of soil and groundwater in its four Flemish sites 77 million Euros over next 15 years 77 million Euros over next 15 years Umicore is the new name of Union Minière (du Haut Katanga)

Overview State of affairs on ecological debt State of affairs on ecological debt Searching for a workable definition Searching for a workable definition Trying to calculate ecological debt Trying to calculate ecological debt The world of ecological debt The world of ecological debt Political implications of recognising ecological debt: new perspectives Political implications of recognising ecological debt: new perspectives

A state of affairs Main conclusions: meaningful new dimension to sustainability and North- South debate meaningful new dimension to sustainability and North- South debate No univocal definition No univocal definition No uniform methodology for calculation No uniform methodology for calculation Limited discussion on political translation Limited discussion on political translation At this stage of development: utility in international negotiations severely restricted At this stage of development: utility in international negotiations severely restricted Some causes: Bottom-up development through NGO campaigning Bottom-up development through NGO campaigning Developing phase Developing phase Limited scientific support Limited scientific support

Defining (1): the core meaning Two essential processes should be covered: In accumulating wealth countries cause ecological damage elsewhere In accumulating wealth countries cause ecological damage elsewhere In accumulating wealth countries use ecosystem services, limiting the possible use by others In accumulating wealth countries use ecosystem services, limiting the possible use by others

Defining (2): working definition Ambition: cover contents AND enhance utility of the concept The ecological debt of country A consists of: 1) The ecological damage caused over time by country A in other countries or in an area under jurisdiction of another country through its production and consumption patterns, and/or 2) the ecological damage caused over time by country A to ecosystems beyond national jurisdiction through its consumption and production patterns; and/or 3) the exploitation or use of ecosystems and ecosystem goods and services over time by country A, at the expense of the equitable rights to these ecosystems and ecosystem goods and services by other countries or individuals

Defining (3): refinements Working definitionPossible 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 debt Ecological debt Ecological damage Use at the expense of equitable rights Indicators for pollution, depletion, degradation (DPSIR) Material Flow Analysis Monetary valuation Monetary valuation Ecological footprints – Environmental Space

The world of ecological debt ED Ecological economics Environmental justice Human rights …… Historical injustice and restitution Biophysical accounting systems

Political implications (1): climate Commitment period after Kyoto: contraction,convergence AND compensation Per capita emissions Convergence target Industrial countries emission profile Developing countries emission profile

Political implications (2): debt Necessary steps: Discussion on status of external debt: repayments made, legitimacy,… Discussion on status of external debt: repayments made, legitimacy,… Use of ecological debt as reference material and as an additional argument for debt cancellation Use of ecological debt as reference material and as an additional argument for debt cancellationBelgium: External debt owed to Belgium: 16 billion Euro (41 HIPC countries: 2,3 billion Euro) External debt owed to Belgium: 16 billion Euro (41 HIPC countries: 2,3 billion Euro) Total ecological debt 1999 (Torras): 250 billion Euro, of which billion Euro is inter-country debt Total ecological debt 1999 (Torras): 250 billion Euro, of which billion Euro is inter-country debt Carbon debt (modular research): billion Euro, of which around 30 billion Euro is inter-country debt Carbon debt (modular research): billion Euro, of which around 30 billion Euro is inter-country debt

Political implications (3): trade Underlying mechanism of ecological debt: ecologically unequal exchange puts into question the assumed positive link between free trade and sustainable development Monetary and physical balance of trade EU-15, 1999

Interim conclusions Meaningful new dimension to sustainability and North-South debate Meaningful new dimension to sustainability and North-South debate At this stage of development: utility in international negotiations severely restricted At this stage of development: utility in international negotiations severely restrictedBUT Possible to formulate a suitable definition Possible to formulate a suitable definition Possible to work on a consistent methodology for calculation Possible to work on a consistent methodology for calculation Possible and necessary to integrate in international policy formulation Possible and necessary to integrate in international policy formulation