THE INTERNATIONAL ENVIRONMENTAL
         FUTURES PROJECT:
 How Can EPA Prepare Itself for Tomorrow's
              Problems?

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 INTRODUCTION

       During the past 15 years, international activities have become an integral component of
 EPA's core mission of protecting human health and the environment in the U.S. Increasingly,
 factors that have no single national origin often affect environmental quality in the U.S. From
 dwindling water supplies along the border with Mexico, to long-range transport of multiple
 pollutants from Asia, to the disappearance of coral reefs, the U.S. environment is clearly affected
 by the actions of other countries, while the environments of other countries are also influenced by
 the choices made by the U.S.

       As the boundaries between domestic and global environmental issues continue to erode,
 the challenges facing the U.S. have become increasingly complex. The remedies to global threats
 are not solely environmental, but also economic, political, cultural, and humanitarian. However,
 no single federal entity has the expertise or mandate necessary to address all of these
 dimensions. The political incentive to tackle global environmental issues can also be weak since
 the U.S. public often does not view such problems as serious threats to national health, domestic
 environmental quality, or economic well-being. Issues that do manage to capture the public's
 attention may not pose the greatest dangers or require the most immediate action.

       In an effort to gain a broad perspective on these challenges, EPA convened two
roundtable  discussions on international environmental futures. The Agency invited experts from
industry, academia, non-profit organizations, and government to identify changes, positive and
negative, likely to affect the environment during the next decade, and to discuss how the EPA.
might best prepare to address such changes. The attached report captures the findings from those
sessions. It also provides recommendations from EPA's Goal 6 Futures Group for actions in
support of the findings.

       Though the roundtable discussions were broad-ranging, the participants converged on
several themes:

       *      The need for increased cooperation between the U.S. and its foreign partners,
              among U.S. federal agencies responsible for environmental protection, and
              between the public and private sectors.  No one entity or sector will be able to
              make significant progress against threats to the global environment. Coordinating
              such cooperation presents not only a significant challenge, but a substantial
              opportunity for sharing data, avoiding duplication of effort, and reducing costs.

      *       The increasing threat to the United States and the global environment from
              transboundary pollution. Many pollutants are now known to travel far from
              their points of origin.

      *       The importance of environmental issues to U.S. foreign policy and national
              security. The link between environment and trade, transboundary disputes over


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water, and migration associated with habitat loss are among those issues that will
increasingly affect U.S. foreign policy.

The rapid expansion of information technology presents opportunities for
sharing environmental data worldwide.  Technological advances will allow us to
collect and analyze more data with greater precision than ever before. Availability
of quality data presented in a variety of formats will foster public participation in
environmental decision-making and facilitate better-informed policy choices.

Mechanisms for financing environmental infrastructure remains an unmet  need
throughout the developing world.

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FINDINGS AND RECOMMENDATIONS

      This paper presents the major findings from the Project. Following each finding, the
paper provides a recommendation from the Goal 6 Futures Group on possible steps that the
Agency could take to address the problem identified by the roundtable participants.

The findings and recommendations are organized into three categories: 1) principal "drivers " of
change, 2) obstacles or impediments to change, and 3) recommended responses.

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 SECTION 1: DRIVERS OF CHANGE
 FINDING 1

 The set of pollutants that have the potential for significant transboundary impact will
 continue to grow in future years, as will the percentage of pollutant loads impacting the
 U.S. environment that are generated by sources in other countries (see Figure 1).

 BACKGROUND

 The U.S. has already identified the long-range atmospheric transport of toxins as an escalating
 threat to human health and the environment in the U.S.  Rapid industrialization and weak
 environmental enforcement in developing countries, combined with significant growth in the
 developed world, has resulted in increasing amounts of pollutants being released into the
 atmosphere. Many industrial pollutants are now known to migrate far from their points of origin,
 thus posing threats across national borders. Transboundary transport of various contaminants
 (such as nitrogen oxide, mercury, persistent organics, and particulate matter) will make it
 increasingly difficult for the U.S. to reach its own domestic air quality regulatory goals.  While
 the EPA has taken steps toward analyzing the sources, circulation, and health effects of many of
 these chemicals (e.g., International Transport of Atmospheric Pollutants Workgroup  and the
 Persistent Bioaccumulative Toxics Multimedia Routine Monitoring Strategy), gathering the data
 necessary to develop sound policy addressing the full range of substances with significant
 potential for transboundary movement requires an expansion of the Agency's efforts.

 RECOMMENDATIONS

 Improve our understanding of the sources and the potential for control of transboundary
pollutants from foreign countries. This effort -- which would include ozone precursors,
 speciated particulate matter and particulate matter precursors, acidifying and eutrophying
 deposition precursors, speciated mercury, and persistent organic pollutants — could involve
 providing emission inventory and source characterization guidance to developing countries,
 compiling source information from around the world, performing source quantification studies in
 key countries, and assessing potential control alternatives available in key countries.

Improve our understanding of the physical and chemical processes that govern the long-range
transport and transformation of transboundary pollutants and the multimedia pathways
through which humans and ecosystems are exposed. This goal could be accomplished through
domestic efforts including global and regional  atmospheric and multimedia model development,
intensive field monitoring studies, and long-term monitoring networks, as well as through
cooperative international efforts on model development and evaluation, harmonization of
instrumentation and monitoring methods, and monitoring data management, analysis, and
dissemination.

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Figure 1
Pollutants addressed by the United States in a transboundary context: 1980, 1990, and 2000*
1980
Atmospheric Contaminants
radioactive particles
sulfur

Marine Contaminants
oil
hazardous chemicals
high-level radioactive
wastes
sewage

Multimedia Contaminants
mercury and other heavy
metals (U.S. / Canada)
PBTs(U.S./ Canada)
PCBs
phosphorus (U.S./Canada)
selected pesticides
(U.S. / Canada)



























1990
Atmospheric Contaminants
radioactive particles
sulfur, nitrogen oxides
(Acid Rain)
volatile organic compounds
ozone-depleting substances
(CFCs, HCFCs, Halons)

Marine Contaminants
oil
hazardous chemicals
high-level radioactive
wastes
incineration at sea •
industrial wastes
low-level radioactive wastes
plastics
sediment
sewage

Multimedia Contaminants
mercury and other heavy
metals (U.S. / Canada)
PBTs (U.S. / Canada)
PCBs
phosphorus (U.S./Canada)
selected pesticides
(U.S. / Canada)


















2000
Atmospheric Contaminants
air emissions from ships (NOx, SOx, halons)
fine particles
greenhouse gases
heavy metals (cadmium, lead)
mercury
methyl bromide
ozone-depleting substances (CFCs, HCFCs, Halons)
radioactive particles
sulfur, nitrogen oxides (Acid Rain)
volatile organic compounds and tropospheric ozone

Marine Contaminants
oil
hazardous chemicals
high-level radioactive wastes
incineration at sea
industrial wastes
low-level radioactive wastes
pesticides
plastics
sediment
sewage
tributyltin

Multimedia Contaminants
aldrin
chlordane
chlordecone
DDT
dieldrin
dioxins/furans
endrin
heptaclor
hexabromobiphenyl
hexachlorobenzene (HCB)
hexachlorocyclobenzene (HCH)
invasive species
mercury and other heavy metals (U.S. / Canada)
mirex
PBTs (U.S./ Canada)
PCBs
phosphorus (U.S./Canada)
polycycb'c aromatic hydrocarbons (PAHs)
selected pesticides (U.S. / Canada)
toxaphene
* This table is only indicative of the transboundary pollutants addressed in 1980, 1990, and 2000; it is not intended to be a
representation of the full suite of pollutants addressed at the turn of each decade.

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 Improve our understanding of the impacts of transboundary pollutants on human health and
 ecosystems in the United States. This effort could include developing more robust monitoring
 networks for persistent bioaccumulative toxics and other pollutants, as well as intensive study of
 susceptible populations and ecosystems such as the Alaskan Arctic.

 Work to reduce the sources of transboundary pollutants in foreign countries. EPA could
 provide additional outreach, education, technical assistance, and technology demonstration
 programs designed to simultaneously address pollutants that are important on a local as well as
 global scale.

 Increase the effectiveness of U.S. government efforts to address transboundary pollution.
 EPA should work to improve communication,  coordination, and collaboration among Federal
 agencies engaged in both science and development activities. U.S. government agencies should
 also increase their collaborative efforts with relevant international bodies, such as the World
 Bank and the United Nations Environment Program (UNEP).
FINDING 2

The globalization of the world economy will require integration of trade and
environmental policies if we are to be successful in addressing one of the significant drivers
of environmental change.
BACKGROUND

The confluence of environmental protection and international trade agreements has clearly
intensified over the past several years.  There are serious concerns that trade initiatives will
increasingly pit economic gain against environmental protection, fostering a backlash against
lowering trade barriers.  On the other hand, there is a strong case to be made for the
environmental and economic benefits that can accrue from sound trade agreements (Figure 2
illustrates growth in world trade over the last 50 years).  Many openings exist to promote synergy
between trade and environmental policies. The recommendations below build on work already
underway at EPA.

RECOMMENDATIONS

Increase involvement in activities on a parallel track to trade issues, such as technical aid and
assistance.  EPA may find that its ability to influence international trade agreements is limited by
other parties' focus on economic concerns.  Therefore, the Agency should not rely completely on
trade involvement, but should also strengthen its role in related activities such as technical
assistance. A majority of our trading partners lack the capacity to set and implement sound
environmental policies.  Long-term solutions to the trade and environment tension lie in

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expanding the capacity of our trading partners to set and implement standards protective of
human health and the environment as an adjunct to economic integration.  In addition, in many
nations there is a continuing need for environmental program capacity and stable environmental
institutions at national and sub-national levels. It is important that sustainable institutional
structures be created for building environmental capacity and programs.

Increase participation in voluntary standards-setting activities. National and international
standardization bodies provide mechanisms, such as consensus procedures based on openness
and transparency, which allow government and stakeholders to collaborate in the development of
standards that underpin products and services in trade.  Such collaboration joins public policy
interests with market interests and can lead to technological innovations that are commercially
viable and also serve our environmental protection goals. The U.S. could increase its
participation in and support for these standards-setting organizations.
                                       Figure 2
                           GROWTH IN WORLD TRADE
                               Volume indices, 1950=100
         Log. scale

          10000
           1000
            100
                      ^—^— Manufactures
                         - - Mning products
                      - - -Agricultural products
               1950   55    60    65    70    75    80    85    90   95
                                                 International Trade Statistics 2000, WTO

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 Identify and eliminate environmentally-harmful subsidies.  Government subsidies can
 encourage environmentally unsustainable use of both renewable and non-renewable resources.
 Trade rules can encourage governments to eliminate these environmentally-harmful subsidies,
 creating a "win-win" situation for international trade and environmental protection. In the World
 Trade Organization the U.S. has advocated elimination of subsidies that encourage over- fishing
 agricultural export. There should be additional effort given to identifying similar harmful
 subsidies.

 Promote expanded trade in environmental goods and technologies. Trade policy can promote
 environmental progress internationally by, for example, encouraging trade in smoke stack
 scrubbers, water purification technology or clean energy production technologies.  Eh'minating
 trade restrictions on environmental goods and services can foster technology transfer, provide
 access to the latest approaches to pollution prevention, and lower the cost of achieving
 environmental objectives. EPA's capacity-building programs can help create international
 demand for "green" technologies. While the U.S. has promoted liberalization of trade in
 environmental services through the World Trade Organization, additional attention from EPA
 and the  Department of Commerce would be beneficial.

 Promote responsible corporate behavior. Transborder investment has the potential to bring into
 countries both cleaner production processes and more environmentally oriented management
 approaches than those that might otherwise be present.  This is especially true if companies
 develop and apply environmentally responsible corporate practices. Corporations are increasingly
 active in developing voluntary agreements that encourage environmental measures and public
 reporting of environmental results. As an adjunct to trade and investment liberalization, the U.S.
 could advocate referencing an existing code of conduct using non-binding language. A key
 example of such language is the Organization for Economic Cooperation and Development's
 Guidelines for Multinational Enterprises, which requires companies to "take due account of the
 need to  protect the environment and avoid creating environmentally related health problems."

Promote community "Right to Know."  "Right to Know" is an integral component of U.S.
 domestic policy, and the link between access to information and effective monitoring of
 corporate behavior is well established. An existing model is the OECD Guidelines for
Multinational Enterprises, which encourages multinationals to publish relevant information. The
U.S. could advocate negotiation of obligations into text or alongside of free trade agreements, or
could add references to existing obligations.

 Consider additional efforts in ecolabeling. The use of ecolabels on products in trade may
provide  a tool to promote  both environmental protection and economic development.  Credible
ecolabels can support trade opportunities (e.g., by helping producers tap  into the market for
"green goods") and promote more environmentally conscious decision-making by consumers.
EPA already has global success with the Energy Star Program and is working with Federal
partners to encourage environmentally-preferable purchasing.  However, full disclosure of
certain product information remains a controversial issue that requires careful consideration.

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Should EPA encourage further ecolabeling programs, these programs should be developed
through open and transparent processes so that all interested parties can contribute to the
development of appropriate labeling criteria.  EPA should consider whether and how to pursue
additional initiatives in this area.

Promote environmental assessments.  Over 100 countries have adopted national policies
similar to the U.S. National Environmental Policy Act.  Some of the countries have gone beyond
our requirements (which only assess major federal actions such as government-sponsored or
funded projects) to require assessment of private projects.  In many countries, such assessments
are the only or principal means of establishing conditions for construction and operation of
pollution sources that may have a significant impact on natural resources. The U.S. could, in
trade agreements or parallel agreements, encourage countries to  commit to environmental laws
that will provide a system for review of impacts and mechanisms to enforce pertinent mitigation,
prevention, and avoidance measures identified and required as conditions for approval of
projects.

Play a more active role in formulating trade agreements and assisting with environmental
reviews of trade agreements.  To help assure the Agency's participation in trade negotiations,
EPA should demonstrate its value to these discussions as an expert on environmental policy and
science. The continued development of the methods and models for environmental review of
trade agreements is a key part of the Agency's contribution. EPA's presence at trade talks will
help ensure that environmental considerations are factored into any trade agreement.

Encourage EPA counterparts in other countries to participate in trade agreements. The U.S.
government alone cannot ensure that environmental issues are addressed and appropriate
provisions are included in or alongside international trade accords.  Therefore, EPA should use
its established relationships with environmental agencies abroad to encourage their participation
in trade negotiations and to illustrate the environmental and economic benefits that can accrue
from such participation.
SECTION 2: IMPEDIMENTS TO CHANGE

FINDINGS

Low environmental literacy of the public is undermining public and political consensus for
action on environmental problems (including global environmental issues).

BACKGROUND

The level of understanding of specific environmental challenges that we face in the U.S. is very
low (see Figure 3). For example, few people understand the range of potential consequences
associated with exposure to heavy metals or global warming.  The perception of environmental

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 challenges that we face as a country is often driven by limited information that is too frequently
 the product of advocacy science or an unbalanced presentation of the relevant concerns. Many
 members of the public are unsure if alleged environmental threats are real.  The perception that
 most environmental controls occur only at great cost to U.S. industry and society is also
 widespread.
                                       Figure 3
                          Environmental Literacy in the U.S.
                               (Based on a 1998 Roper Study)

         On a simple 10-question environmental quiz, the American public averages just two
         questions correct.

         A majority of the public thinks (incorrectly) that energy is produced in non air-
         polluting ways. Only one in three see coal burning as an issue.

         Only 9% of the American public understands that micro-organisms in water supplies
         are the leading cause of childhood death worldwide.

         About two out of five Americans are able to identify the term watershed as a land
         area that drains into a specific body of water.
  Recognizing that the environmental literacy of the country is quite low, it has become
increasingly hard to foresee strong public and political support to address numerous problems we
face.  This is especially true on global environmental issues where understanding of the problems
and consequences is particularly lacking.
RECOMMENDATION

Empower the Agency to dramatically expand current efforts to educate the public on the
major environmental challenges we face as a country.  This communication effort should
include a specific component targeted to increase environmental literacy on global environmental
challenges (e.g., persistent organic pollutants, global warming, oceans) where the U.S. needs to
reestablish international leadership.

FINDING 4

A proliferation of international institutions and venues addressing environmental issues
has made it difficult for the U.S. and the international community to focus resources in a
cost-effective manner.
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                                               U.S. EPA Headquarters Library
                                                      Mail code 3201
                                               1200 Pennsylvania Avenue NW
BACKGROUND                                   Washington DC 20460

In the last thirty years, awareness of environmental problems has led to the negotiation of
numerous environmental treaties and other non-binding (soft law) resolutions and agreements.
Coincident with the expanded international law on the environment, numerous international
organizations and other venues have emerged for debating environmental policy at bilateral,
regional, and global scales. The sheer number of organizations and their attendant meetings have
greatly taxed the ability of the Department of State, EPA, and other relevant stakeholders to staff
these events. As a consequence, the level of thought, preparation, and degree of political
commitment associated with any single event has also been compromised.  More importantly, the
ability to focus people and resources on the issues of greatest concern and upon those venues that
provide the most efficient vehicle for addressing these problems has also suffered.

RECOMMENDATION

Invite the Department of State to undertake a joint review with EPA of the numerous
international organizations, environmental discussion venues, and events, with the aim of
determining which institutions and venues offer the most efficient and effective vehicles for
achieving our international environmental objectives.  This review (performed in cooperation
with the Council for Environmental Quality, the National Security Council, and other appropriate
agencies) should be undertaken with a view to setting priorities among the numerous
organizations and events that the U.S. actively supports, and to focus resources on those venues
that offer the best chance of definitive outcomes on issues important to the U.S. The review
should also recognize that higher-level political venues do not necessarily produce more
definitive outcomes in achieving our environmental and foreign policy objectives.  Indeed, some
policy-setting venues that are not accompanied by high-level political representation (such as
U.S. participation in the OECD Chemicals Program and the International Maritime Organization)
have been quite effective.
SECTION 3: RESPONSES TO CHANGE

FINDINGS

There is a need to provide better environmental information at state and local levels that
builds on the environmental experience and lessons-learned of other countries.

BACKGROUND

As EPA has increased its delegation of implementation responsibilities to state and local
authorities, these governments have asked for better scientific information for use in carrying out
their own policies and programs.  This type of outreach is also important with respect to our
international involvements, as we have an opportunity to improve our own approach to

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 environmental policy by evaluating the experience of other countries. This effort can be
 particularly important for local governments dealing with redevelopment of contaminated sites
 and other urban problems; indeed, urban redevelopment has been addressed with notable success
 in several other countries.

 RECOMMENDATION

 Institute a formal program to transfer "lessons-learned" from other countries that have
 already experimented with and benefitted from alternative approaches to environmental
protection.  Institute a program within EPA's Office of International Activities, in cooperation
 with the Office of Research and Development, other national program managers and regional
 offices, that will facilitate transferring "lessons-learned" from other countries that have already
 experimented with and benefitted from alternative approaches to environmental protection (see
 Figure 4). Other countries may also be on the leading edge of addressing particular
 environmental problems that have only recently become the focus of attention in the U.S.
 Therefore, the Agency should explicitly seek to draw upon successful approaches utilized in
 other countries when designing new programs in the U.S., or when evaluating the effectiveness
 of current U.S. environmental programs.
                                       Figure 4
           Lessons Learned: The Brownfields / Urban Environments Program

   Brownfields: Abandoned, idled, or under-used industrial and commercial facilities where
        expansion or redevelopment is complicated by real or perceived environmental
                                    contamination.

         The Brownfields/Urban Environments Program helps U.S. cities learn from urban
   redevelopment and smart growth programs that have been successful in Germany, the United
   Kingdom, Japan, Sweden, Spain, and other countries.  Some of the achievements of the
   Brownfields/Urban Environments Program include:

   •      Helping U.S. states, communities, and other stakeholders in economic development to
         work together to prevent, address, clean up, and sustainably reuse brownfields.

   •      Case studies and testing in US cities of model redevelopment, transportation, and "green
         building" programs successfully employed in Germany, the Netherlands, Great Britain,
         and Canada.

   •      Specific cities benefiting from the program to date include Buffalo, NY; Niagara Falls,
         NY; New York City; Bridgeport, CT; Cape Charles, VA; Lawrence, MA; Portland, OR;
         San Francisco, CA; and Seattle, WA.
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FINDING 6

The mechanisms for financing environmental infrastructure are inadequate throughout the
developing world. Far too much reliance is placed on central government financial
resources such that the environment must compete for scarce funds against high-priority
needs such as food, housing, public health, and even public safety and military
requirements. As this situation persists, the ability to address global environmental
problems will steadily decline and political instability might result from the regional
conflicts motivated by resource shortages and environmental degradation.

BACKGROUND

During the last 40 years  we have witnessed a series of bilateral and multilateral efforts to
improve conditions in developing countries. These efforts have produced mixed results, with
many well-financed projects resulting in unmitigated failures.  Recently there have been efforts
to stimulate more innovative financing mechanisms with increasing involvement from the private
sector. Many stakeholders have asserted that private financing sources are the necessary vehicle
for future improvements, although some doubt that even private finance is capable of addressing
many of the serious environmental challenges we face in providing safe drinking water, proper
sanitation of domestic wastewater and other large infrastructure needs.  What is clear, however,
is that private capital markets can play a significant role in addressing these needs.

RECOMMENDATIONS

Investigate the feasibility of establishing an environmental finance mechanism for support of
environmental infrastructure projects worldwide. This study should examine the gap between
what is available from central government financial resources as well as bilateral and multilateral
finance programs, against what is needed from private capital, through municipal bond markets
and other mechanisms. Particular attention should be paid to the role of financial guarantees in
terms of leveraging new funds into the environmental sector.

Continue development of EPA's technical assistance and training program. This effort is two-
pronged.  EPA must continue its work with foreign governments to create permanent,
nationwide, self-supporting systems for financing environmental projects such as domestic
municipal bond markets. It must also continue to work with project sponsors at the regional and
local levels because even when financing is available, projects must be technically and
financially well prepared in order to: 1) produce meaningful long-term results, and 2) gain access
to the additional financing.

Continue efforts to "green " the International Financial Institutions (IFIs) and Export Credit
Agreements (EGAs).  Efforts to use IFIs and EGAs to stimulate investment in environmental
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 projects may be improved over time through agreements that will open the way for
 environmental professionals from EPA and other environmental organizations to take part in the
 preparation and review of proposed projects. Broader participation in project preparation can
 result in projects that are financially viable and environmentally beneficial, while also increasing
 public acceptance and support for projects that may otherwise prove controversial.
FINDING?

There needs to be greater collaboration on international environmental issues among U.S.
federal agencies.

BACKGROUND

The U.S. should work toward a broader national consensus concerning our role in international
environmental issues. As the principal Agency charged with protecting the environment, EPA
should develop stronger alliances and exchanges with other agencies.  In addition to those
agencies directly involved in environmental issues (e.g., National Oceanic and Atmospheric
Administration, U.S. Department of Agriculture, Department of the Interior, Department of
Energy, and the U.S. Coast Guard), the Agency should collaborate more effectively with the
Department of State, the U.S. Customs Service, the National Security Council and other entities
that do not have a specific environmental mandate, hi addition, EPA's coordination with other
agencies needs to take on a more comprehensive perspective. Too often, coordination is on
highly specific issues with too little attention given to the broader policy implications of a given
decision.

RECOMMENDATION

EPA should make increased cooperation with other Federal agencies apriority.  EPA has
long-established working relationships with federal agencies such as the Department of State, the
Agency for International Development, the National Oceanic and Atmospheric Administration,
and others. Nonetheless, significant gaps remain among federal agencies, requiring increased
communication and cooperation.

A conscious effort should be made in the Administration to broadly consider those issues that
transect the domestic and international spheres. Efforts to broaden our perspective on
transportation policy, climate and energy, oceans policy, trade, and other issues should result in
better long-term results that consider future trends.
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                                            U.S. EPA Headquarters Library
                                                  Mail code 3201
                                                      ton DC 20460

FINDINGS

In many developing countries, environmental management will increasingly become the
responsibility of state and local governments.


BACKGROUND

Over the past several years, the national governments in India, Thailand and other developing
countries have begun to give their state and municipal governments increased authority to
address local environmental issues. In most cases, officials at these sub-federal levels of
government do not have the adequate training or the resources necessary to manage
environmental issues appropriately.

RECOMMENDATION

Increase emphasis in EPA's technical assistance programs at the state and local level.
Though EPA has taken initial steps towards working directly with some state-level governments
in developing countries, its programs still focus on federal-to-federal relations. EPA needs to do
more to build the environmental management capacity of sub-federal governments.  The Agency
should work in concert with its counterpart agencies in developing countries to address the needs
of state and local governments that have recently assumed or that will soon assume increased
environmental oversight responsibilities. Assistance to these governments could include
training, aid in developing policies, and advice on designing environmental information systems,
such as Pollutant Release and Transfer Registers and other right-to-know activities.  Aiding
governments in increasing public participation through environmental awareness campaigns
should also be a key focus of the Agency's work in this area.

Facilitate state-to-state and community-to-communityprograms.  Since EPA's experience
represents but one side in the federal-state-municipal relationship, it should work to facilitate
state-to-state and municipality-to-municipality relationships between governments in the U.S.
and appropriate counterparts overseas. These U.S. local governments would be well positioned
to assist developing-country states and cities design sound environmental management systems.
Members of the Council of State Governments, the International City/County Managers
Association, the National Conference of Mayors, and similar organizations have relevant
experience in developing environmental management systems.  EPA should engage these groups
as partners in its work with foreign state and local governments.

In the same context, U.S. states and municipalities could benefit significantly from experience in
other locations around the world.  As noted earlier in the report, EPA should encourage the
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 transfer of "lessons-learned" from other countries. This approach is equally true at the state and
 local level, where various cities around the world have undertaken environment and development
 programs that have the potential for application in U.S. communities.

 FINDING 9

 Many environmental issues require long time-frames for problem assessment and planning.
 However, the Agency does not yet have adequate mechanisms in place to take necessary
 steps in establishing protections against new threats to the environment  EPA needs to
 better prepare itself to address emerging environmental issues that will constitute the most
 significant environmental challenges that we face in future years.

 BACKGROUND

 Several EPA groups, such as the Agency-wide Futures Network, seek to incorporate emerging
 issues into the Agency's Planning and budget process.  Nonetheless, EPA's planning activities
 still remain largely reactive. The current approach to strategic planning relies heavily on
 accounting for programs already in progress, which can leave the Agency poorly positioned to
 integrate such emerging issues as biotechnology, conversion to fuel cells, the environmental
 impacts of free trade, etc. into its strategic plan.

 Also compromising long-range planning  efforts is the fact that the U.S. does not produce national
 environmental indicators or national reports on the state of the environment. This situation
 makes it difficult for decision makers and stakeholders to track progress toward environmental
 goals, hi contrast, the EU and certain EU Member States produce sophisticated policy-level
 reports containing environmental indicators and periodic state of the environment reports. The
 EU recently challenged the U.S. to publish environmental data so that the public could
 "benchmark the Union against the U.S." Japan and Canada also produce periodic reports on their
 environmental performance.
RECOMMENDATION

Work to integrate futures planning into Agency research, planning, and budget processes,
The Agency should consider how efforts now underway in the Science Policy Council, the
Futures Network, National Advisory Council for Environmental Policy and Technology
(NACEPT), and other venues within EPA could be coordinated to greater effect. The Agency
should also continue its cooperative efforts on futures with outside organizations. For instance,
EPA should try to work with external think tanks such as the Woodrow Wilson Center for
Scholars as it examines the possible effects that technological advances and rapid social change
might have on the environment. The Agency should also continue its participation in the inter-
agency working group on futures, which may improve coordination among planning efforts in
various Executive Branch agencies.
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Develop an Annual Environmental Indicators Report for the United States. Strengthen EPA's
public reporting on environmental outcomes by producing a document comparable to the EU
report Environmental Signals, drawing on "best practices" from Europe and elsewhere.  This
report could be provided to Congress and other EPA stakeholders in connection with EPA's
annual reports outlining progress in meeting our strategic goals.  The report would help us assess
over the long-term what progress we are making as a country in improving the state of the
environment.
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                                     APPENDIX A

                                  Project Description

       EPA's Office of International Activities (OIA), in cooperation with the Office of the
 Chief Financial Officer (OCFO), recently undertook a project on international environmental
 futures. Representatives from OIA, OCFO, and other interested offices formed a group (the Goal
 6 Futures Group) to develop and manage the project.

       The Group convened a panel of environmental experts from government, academia, the
 private sector, and NGOs to assist in the foresight activities.  The panel members participated in
 two roundtable sessions to discuss trends likely to have a substantial impact on the global
 environment during the next decade.  Appendix B includes a complete list of the experts who
 participated in the roundtables.  The Group asked panel members to concentrate on the following
 three objectives during their discussions:

       •     Identify key global economic, technological, and social trends, particularly
             those that may affect the environment.

       •     Determine potential impact of these trends on the U.S. environment and
             EPA.

       •     Provide EPA with recommendations to help shape the Agency's
             international environmental agenda.
       Prior to the first roundtable, a contractor to the Goal 6 Futures Group conducted
telephone interviews with most of the roundtable participants to gather their preliminary thoughts
on global trends and the environment. These brief conversations helped frame the agenda and the
discussion for the first roundtable session, which explored those global trends and developments
that are most likely to drive future environmental challenges.

       The second session built on the observations of the first session, focusing on issues of
particular relevance to the United States and to EPA's future planning efforts.  In particular,
participants worked to identify possible policy responses to the major trends and challenges
discussed during the first roundtable.

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                            APPENDIX B
NAME

Richard Ackermann
Brad Allenby
Gordon Binder
William Clark

Jerry Clifford
Michael Curley
Nathan Fields
Christiana Figueres
Linda J. Fisher [former Asst.
Gary Foley
Paul Frandano
Ernest Green*
HankHabicht*

Jeremy Hagger
Scott Hajost

Jennifer Haverkamp

Alan Hecht
BillKrist
Jonathan Lash*
Tom Loftus
Jonathan Margolis
Dr. William Moomaw

Jane Nishida

William Nitze [former Asst.
David Rejeski
Randal Scott
Michael Shapiro
Robert Watson
Tseming Yang
David Ziegele
                    List of Roundtable Participants
             AFFILIATION

             World Bank
             AT&T
             AQUA International Partners
             Kennedy School of Government/
                Harvard University
             U.S. EPA
             General Trade Assistance Corp.
             African Development Foundation
             Sustainable Development in the
                Americas (CSDA)
Admin.]      U.S. EPA
             U.S. EPA
             Central Intelligence Agency
             Lehman Brothers, Lie.
             Global Environment & Technology
                Foundation (GETF)
             U.S.-Asia Environmental Partnership
             International Union Conservation of
                Nature-U.S.
             Office of the U.S. Trade
                Representative
             U.S. EPA
             Woodrow Wilson Center
             World Resources Institute
             World Health Organization
             U.S. Department of State
             Fletcher School of Law &
                Diplomacy/ Tufts University
             Maryland Department of the
                Environment
Admin.]      U.S. EPA
             Woodrow Wilson Center
             U.S. Department of Energy
             U.S. EPA
             World Bank
             Univ. of Vermont School of Law
             U.S. EPA
[* - roundtable co-Chair]

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