1. 1 GCO Pillar II: 1. UNEP Chemicals and Finance Initiative activities 2. Case studies Louise Gallagher Consultant (Economics) Chemicals Branch, DTIE, UNEP

2. 2 Draft Outline Pillar II: II.Overview of Economic Implications of Trends III. Financial Implications IV. External Cost Implications V.Case Studies Overview Supporting the fulfilment of work for Pillar II – Economic Implications of Chemicals Production, Use and Disposal (RR)

3. 3 Who are UNEP FI? Drivers for collaboration: –Finance sector is a key leverage point –Chemicals financing discussions –Need for deeper understanding of private sector –Delivering to UNEP FI membership Objectives –Mutual learning –Identify high impact areas of collaboration III. Financial Implications UNEP Finance Initiative–Chemicals Collaboration to strengthen messages and services for both our clients

4. 4 III. Financial Implications Timeline and outcomes to date for the Chemicals-Finance collaboration Dec 2010 - UNEP FI requests informal meeting Jan 2011 -First contact -Focal points established Feb 2011 -Information exchange -Guest speaker Mar 2011 -Andrew Dlugolecki -Financial piece outline -FI Steering Commitee April 2011 -Membership mailing May 2011 -GCO finance work begins June 2011 -New focal points -Working group proposed

5. 5 III. Financial Implications Elements of continued collaboration supporting the GCO Extending contact with insurance, banking and investment sectors –Establish a Working Group on Chemicals Reach out to members of existing groups to populate Meeting suggested for September (no concrete action on this yet) Review from the finance sector When the timing is right… –New! Principles for Sustainable Insurance –UNEP FI Global Roundtable, Oct 2011 –The Geneva Association

6. III. Financial Implications ESG (Environment Social Governance) Risks framework for Chemicals is going to be an important output ESG Risks is the only language on sustainable development in the finance sector context that has embedded itself Broader vision of potential chemicals- risks impacts on the finance sector –COI –Value for UNEP FI and its members –A guide to future work on chemicals and the finance sector 6

7. 7 Framing of cost implications Categorization of costs Sizing the problem Literature, figures, case studies Authoritive gaps analysis Reflecting the COI strategy IV. External Cost Implications The costs of inaction results will be central for completing this section

8. 8 GCO: Demonstrating possibilities for economic framing of chemicals-related trends and use of this information in decision- making –What choices would we hope to inform? Development paths Investment in sound management of chemicals –Aiming for Net Benefits type of discussion… COI on gaps/case studies under Module B New (and needed) stand-alone contributions for the individual topics V. Case Studies The main purpose of the case studies is to draw together the financial and external cost information in a concrete discussion

9. 9 1.Mercury use in artisanal and small- scale gold mining 2.E-Waste 3.Industrial chemicals (accidents) 4.Pesticides (IPM/IVM) V. Case Studies Four topics are PROPOSED as case studies to complement the work of Pillar I, provide information for Pillars II and III

10. 10 Case Study 1 Mercury use in artisanal and small-scale gold mining – reasons for including a case study on this topic in the GCO (1) Forthcoming Mercury Treaty Elimination, reduction (and management) of mercury in gold mining falls in the scope of SMC and has a global dimension Captures three issues of particular interest to the COI/GCO: –i) mining and chemicals, ii) metals and iii) drivers of economic development with a chemicals dimension

11. 11 Case Study 1 Mercury use in artisanal and small-scale gold mining – reasons for including a case study on this topic in the GCO (2) Captures some interesting aspects: i) non- chemicals production trends that impact on chemicals usage (intensity) ii) illegal use Significant exposure numbers and vulnerabilities – occupational, local and indirect Informs some key policy choices: –Initial choice of development paths –Minimizing costs (maximizing benefits) from existing development choices

12. 12 Case Study 2 e-waste – reasons for including a case study on this topic in the GCO (1) E-waste falls squarely in the scope of SMC/global chemicals trends Captures two issues of particular interest to the COI/GCO: –i) sustainable production/green chemistry and ii) management of chemicals in products in end-of- life phases Significant exposure numbers and vulnerabilities – occupational, local and indirect

13. 13 Case Study 2 e-waste – reasons for including a case study on this topic in the GCO (2) Emerging discussion that would benefit from inclusion in COI/GCO Informs some key policy choices: –How strictly to regulate electrical and electronic equipment production –Domestic requirements for e-waste management –How strictly to regulate e-waste exports/ imports

14. 14 Case Study 3 Industrial chemicals (production-accidents)– reasons for including a case study on this topic in the GCO Increasing risk of industrial accidents with shift of production falls squarely in the scope of SMC/global chemicals trends Cross-cutting – links trends, finance (insurance), economic implications and policy Exposure and vulnerabilities – occupational, local and indirect (depending on emissions) Informs some key policy choices: –Development paths –Regulating industrial H&S, pollution control..

15. 15 Case Study 4 Pesticides (IVM/IPM) – reasons for including a case study on this topic in the GCO Pesticides (IVM/IPM) falls squarely in the scope of SMC/Global chemicals trends Highlighted in Pillar I trends: Production, use and disposal (obsolete pesticides) Significant exposure numbers and vulnerabilities – occupational, local and indirect Informs some key policy choices: –Development paths –Regulating production, trade, use and disposal

16. 16 Resources Brainstorming the materials and partnerships that can help this work progress Case StudiesResources Case Study 1 (Hg in ASGM) Global Mercury Partnership, UNEP Mining Partnership, Expertise in the Steering Committee (valuation), COI Case Study 2 (e-waste) Pillar I, Basel Convention Secretariat, Blacksmith, Waste Without Frontiers, COI, ICCA, BAN Case Study 3 (Industrial accidents) Pillar I, Pillar II Financial analysis, UNEP SCP (APELL/China), COI, ICCA Case Study 4 (Pesticides/IPM) Pillar I, Stockholm, FAO, IPEN, COI, UNDP/UNEP PI, CropLife

17. 17 Work Plan: Pillar II How this gets done over the next 6/7 months TasksJunJulAugSeptOctNovDec Chem-FI Collaboration III. Financial Implications IV. External Costs (COI) V. Case Studies 1. Hg in ASGM ? 2. WEEE 3. Industrial accidents 4. Pesticides (IVM/IPM) Putting it all together