President Tadao Chino

Distinguished guests, Ladies and Gentlemen,

I would like to begin by extending my thanks to the Asian Productivity Organization (APO) for giving me the opportunity to address this important conference. The Asian Development Bank has enjoyed a partnership with APO for many years. Most recently, APO and ADB jointly hosted a seminar at the World Summit for Sustainable Development in Johannesburg. The topic of that seminar was the same as this Conference-how to achieve environmentally sound economic development through more efficient and effective use of resources and technology.

Since 1999, ADB's firmly established overarching goal has been poverty reduction. We are also fully committed to the internationally-agreed Millennium Development Goals (MDGs). ADB's Poverty Reduction Strategy and the MDGs recognize that Asia's remarkable growth has not been without a price. It has often been accompanied by resource depletion and environmental degradation. Many Asians endure severe suffering as a result of environmental degradation, and poor families suffer the most from the hazards brought about by air and water pollution.

It is clear that economic growth is essential for achieving sustainable poverty reduction and meeting the MDGs. But economic growth must take a different path from the past if it is to be sustainable. That is why ADB is increasing its assistance to its developing member countries for integrating Green Productivity and cleaner production concepts in development policy and planning. We believe that such assistance, combined with a strengthened small and medium -enterprise (SME) sector, will help countries achieve environmentally sound economic development, and reduce poverty through job creation and more efficient productivity.

All of us here today are convinced of the need, from both financial and environmental perspectives, to promote Green Productivity policies and practices. Unfortunately, unless developing countries implement a number of inter-related reforms, the benefits of Green Productivity will be enjoyed by only a few enlightened businesses. For wide-scale adoption of Green Productivity to take effect, multi-stakeholder partnerships are required to initiate and implement a multitude of actions. Such partnerships are absolutely essential because there are no single approaches or actions that can adequately achieve Green Productivity objectives. The key is to achieve sustainable development based on shared interests and goals, and relying on strong partnerships between business, government, NGOs, development agencies, research and academic institutions, and local communities.

We are pleased to note that many such partnerships have already been active in countries such as the Philippines. ADB's program for the Promotion of Cleaner Production Policies and Practices included surveys of many stakeholders. The results in the Philippines are very promising, showing a high level of participation by many stakeholders. For example, the Hotel and Restaurant Operators Association of the Philippines has been proactive with regard to the protection of the environment. The hotel we are in today is ISO 14000 certified-a major accomplishment. In addition, members of the Pulp and Paper Industry Association share new technological information, hold monthly dialogues, and regularly meet with other stakeholders such as the Environmental Management Bureau, the Development Bank of the Philippines, and others. The Semiconductor and Electronics Industry Association has the largest number of ISO-14000 accredited companies in the Philippines. Philippine Recyclers, Inc. is one of three lead battery recyclers in the world, and they have been recently accredited to be ISO-140000. The Philippine Institute of Certified Public Accountants has also played an important role in stimulating greater interest in Green Productivity. Similarly the Philippine Business for the Environment has been active in information dissemination through the publication of its bi-monthly magazine Business and the Environment. Finally, the Philippine Pollution Prevention Roundtable has actively networked among industries, government, academia, and NGOs.

Ladies and Gentlemen, ADB continues to focus on integrating Green Productivity concepts into mainstream policy frameworks. This is vital to creating motivated stakeholders to adjust behaviors that lead to more eco-efficient outcomes. ADB will use its capacities as a financial institution to help create positive economic and financial incentives that reward positive Green Productivity behaviors. We have worked with our borrowing countries to develop loan guarantees for Green Productivity financing, incorporating Green Productivity principles into equity investments. We have also developed market-based instruments that encourage Green productivity as a complementary precursor to pollution control, and we have mobilized capital resources for strategic projects that promote Green Productivity.

The greatest challenge ahead, particularly among SMEs, to incorporate Green Productivity principles and practices. Asia will soon dominate the world's industrial production. Retrofitting factories is not an adequate solution; Green Productivity concepts and technologies must be brought into a new investment at the earliest stages of design. New approaches must be developed so that investors and designers have strong incentives to work together to expand Green Productivity methods and resources across the region.

Ladies and Gentlemen, I hope that during your deliberations the next three days, you will be able to generate some new and creative ideas about how to achieve rapid adoption of Green Productivity throughout Asia.