We are moving out of the era of fast easy profits into a more demanding competitive market place.
Buyers are going to ask more than just the price and delivery schedule. They are going to demand detailed information about how and where the products were produced. They are going to require environmental compliance and performance certifications backed by sanctions for false submissions.
There will be a movement to use purchasing power for environmental good by guiding contracts to suppliers that can demonstrate environmental excellence.
Governments will also act to reinforce these trends. In many developed nations, the globalization of the world economy has stirred real political discontent which is easily reflected in the speeches of presidential candidates.
The economic miracle created by the WTO is increasingly thought of as an environmental nightmare by some. Governments will respond to these perceptions and trade from nations viewed as pollution havens will be the target.
This need not be the case. Together we can harness the energy of this new green wave to protect the welfare of the people to create prospects for a healthy and secure life. But it will require serious effort to build and use effective environmental tools. The people of the region are ready to move beyond talk.
The author is chief economist of the Environmental Defense, a US-based non-governmental organization
(China Daily April 11, 2008)
