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Australia
in the Context of a Sustainable Asia: I would like to talk about sustainable development from an Asian Business Perspective. The 2002 World Summit on Sustainable Development was held in Johannesburg. The five key areas identified for action at the Summit were Water, Energy, Health, Agriculture and Biodiversity. Public-private partnership was identified as the preferred vehicle for action. The company I work for—the Cheung Kong Group—has launched initiatives in all five of these areas and also has participated in a number of public-private partnerships. I would like to share with you some of our experiences. Before I go further though, I will briefly introduce to you the Cheung Kong Group. Cheung Kong Group Total market capitalisation of the Cheung Kong Group is about A$110 billion, equivalent to about 15 per cent of the total market capitalisation of the Sydney Stock Exchange. We operate in over 40 countries and have more than 160,000 employees worldwide. In Australia, we have invested around A$9 billion. Businesses include gas distribution, electricity distribution, transportation and telecommunications; and they are conducted through Envestra, ETSA Utilities, Powercor, Citipower, Sydney Cross City Tunnel, and Hutchison Telecom. Environmental sustainability is the forte of CK Life
Sciences, our biotech arm. This company is dedicated to improving
the quality of life in two areas—environmental sustainability
and human health. Through CK Life Sciences, we have participated
in public-private partnership programmes in Australia and have started
a number of environmental initiatives. Private corporations can make great contributions by developing and promoting products and services which facilitate environmental sustainability. However, as private corporations are driven by commercial objectives, unless financial returns on these products are justified, investment will be limited. Governments, on the other hand, can act as catalysts to speed up the necessary reforms. Government can also generate multiplier effects in expediting the success of efforts undertaken by the private sector. Governments could assume the leadership role in providing an environment for private corporations to operate so that their causes can be realised. Policies, incentives and, at times, legislation could create the appropriate playing field to ensure sustainable efforts are carried out widely, efficiently and effectively. The role of governments in sustainable development is extremely significant. Sustainability Does Not Mean Compromise At Cheung Kong, we believe that achieving environmental sustainability should not mean compromising on quality of life. True sustainability means that we should not have to go back on progress made, nor do we have to suffer sacrifices. We should always move forward and contribute positively towards efficiency and human comfort. After all, sustainability should be aimed at more than just basic survival. Sustainability should be the principle by which we work to improve the wellbeing of mankind. Effective environmental sustainability initiatives should be financially viable for commercial corporations, generate overall benefits for the country, and improve the quality of life for mankind. Take the example of motor vehicles. One should not ban cars on the road because they cause pollution, one should find ways to tackle the pollution problem. In some countries, the introduction of unleaded fuel and legislation on emission-free vehicles are good examples of non-compromising, win-win solutions. Some of Cheung Kong’s Sustainability
Initiatives These environmental initiatives include: CK Life Sciences in Australia CK Life Sciences has identified the promotion of environmental sustainability as one of its two missions—the other is improving human health. Using scientifically advanced breakthrough technology, we have developed more than 100 products. Half of these are aimed at solving environmental issues, the remainder address human health concerns. All of these products have their origins in our unique yeast-based technology platform. Dormant cells of the selected yeast strains are activated and then acclimatised to perform functions including: nitrogen-fixation; carbohydrate-degradation for environmental products; and, immunity enhancement capability, applied in pharmaceuticals and animal feed additives. The range of environmental products we have developed includes eco-fertilisers, bioremediation solutions and animal additives. Today, I would like to concentrate on the first two of these product categories. Sustainability Agenda of Australia For decades, chemical fertilisers have improved productivity yields of farmers. But many studies indicate that only one-third of the nutrients from these fertilisers is absorbed and used by plants—of the remaining two-thirds, a third is left in the soil, while the other third leaches into nearby waterways. Those chemicals that remain bound up in the soil cause soil degradation. Those leached into the water cause pollution and affect the biodiversity of the marine environment. For reasons including these, sustainable agriculture has become an urgent topic for Australia. The challenge now is to develop or identify a fertiliser which does not leach into the environment and can supply the nutrients crops need—nitrogen (N), phosphorus (P) and potassium (K). We definitely see great potential for public-private partnerships in this area. Take, for example, the case of the Great Barrier Reef. The Australian government should be commended for taking a visionary role by outlining plans to tackle the Reef's water quality problem—as evidenced by the MOU recently signed by the Queensland Government and the Federal Government. This MOU commits the two Governments to a range of joint actions aimed at halting the decline in water quality on the Reef. One activity to result from the MOU is a Productivity Commission inquiry that, in its Draft Report, found important parts of the Reef system may be under serious threat from the chemical-laden sediment that flows into coastal waters every time following significant rainfall. Against this background, there is the opportunity for private sector to step up efforts to develop appropriate solutions. One of the challenges is to develop fertiliser products which do not cause leaching and yet can generate yields similar to those of chemical fertilisers. Currently, there are organic fertilisers in the market which are environmentally friendly, but they do not always generate satisfactory productivity yields for farmers. CK Life Sciences’ eco-fertiliser, NutriSmart
NutriSmart can do most of the beneficial things that chemical fertilisers do in terms of productivity, yield and cost, but without causing the associated environmental harm of traditional chemical fertilisers (such as leaching of excess nutrients into nearby waterways). NutriSmart is an appropriate product for the current agricultural environment—a case of right product and right timing. The product has been extensively tested in a number of countries around the world, with favourable results. In Australia, tests have been carried out by SARDI, a South Australian government agency, with very positive results; and currently it is being tested by BSES, a government agency in Queensland. NutriSmart is now in use on more than 50 crops in a dozen different countries. Recently, we have participated in a programme orchestrated by the Burdekin Shire to alleviate the burden on sugar cane farmers in the that region of Queensland. Under this plan, we offered cane farmers limited supplies of NutriSmart at a steep discount. We asked for an upfront payment of only $50 a tonne, with the balance of $300 paid off interest free over nine months. During these nine months, in order to fund amounts outstanding for the fertiliser, farmers apply for a Government subsidy designed to encourage take-up of innovative new technologies. Where farmers apply for but do not receive the subsidy (or receive a subsidy of less than $300 per tonne), their total outstanding balances will be waived. The project not only alleviates the financial burden on sugar cane farmers, it also gives them the opportunity to counter those persistent accusations that cane farmers are the ones causing pollution to the environment. Another multi-win scenario. Private Enterprise Can Only Do So Much These are all micro-level activities. A general change of thinking is necessary to really promote sustainable farming—and the speed of this change must be considerable in order to be effective. To accelerate the adoption of sustainable farming practices requires active leadership from government on a macro-level. This leadership would create an attractive environment for industry practitioners to develop and introduce solutions to the market, and make consumers aware of the need to adopt the solutions. Governments Take Lead in Some Areas
As I understand, the South Australian Government has funded a number of tests for sustainable agriculture and the Victorian Government has been active in developing an export-oriented organic food industry. These are all commendable efforts, but it is just the beginning. There are still many actions to be taken in order to ensure effective solutions are implemented expediently. Steps for Government to Consider We feel very strongly that some sort of carrot-and-stick approach—a combination of incentives and regulations—should be implemented to ensure sustainable agriculture. California Emission Control Legislation a
Good Example The California Government has passed legislation that requires 10 per cent of the State’s motor vehicles to be emission-free within 10 years. This is a clear target and timeline. Both are essential ingredients in any effective plan designed to create an environment in which the necessary research and development is carried out, and the required business support operations are developed. The Californian Government’s determination to take the lead by passing legislation has had definite results. Car manufacturers have stepped up efforts to carry out research on cars that run on clean fuel. Gas companies have started to devise business strategies to meet the legislated changes. Consumers have begun to learn more about clean fuel, its applications and benefits. There are no more debates on the issue. This is a good case for the Australian government to refer to for ways to speed up the adoption of sustainable farming practices. The government can set the stage and get farmers and the fertiliser industry prepared for the change. Incentives and levies should all be considered to turn the concept of sustainable land use into reality. Protecting Precious Water Resources Through
Bioremediation Like fertile soil, water is another precious resource in Australia. Government should take a leadership role in conserving water and improving its quality. Drought has been an issue in recent years. Developing measures to encourage recycling of water and cleaning up polluted water would be important areas for Government activity. It is also imperative to encourage the adoption of sustainable farming practices that will not contaminate the environment. Water problems such as those in the Great Barrier Reef, the Murray Darling River System and many smaller waterways, are very complex. While physical, chemical and biological solutions have all been studied, the perfect solutions for recycling and cleaning waste water, as well as preventing the water from being further contaminated, have yet to be identified. In this matter, government can take up many roles; it can be regulator, policy maker and, in some cases, even end user. In this regard, the government can work with private corporations to carry out research and develop new solutions. WonderTreat Offers Liquid Waste and Solid
Waste Solutions WonderTreat™ contains microbes with specific pollution removal functions. It provides tailored solutions for removing bio-available nitrogen and phosphorus and reducing odours and environmental toxins. It also reduces polymeric compounds, and suppresses the growth of algae and pathogens. In Australia, a few trials of WonderTreat™ have been arranged. These include one for treatment of pig manure in a piggery near Murray Bridge and another to treat dairy farm cow manure (with the intention of solving the dairy discharge problem into the lower reaches of the Murray River). Both of these initiatives are to be conducted with the support of the South Australian Government. Commercial tests are also in place. Important Partnership Role of Environment
Groups So, while it is true that government, environmental NGOs and commercial enterprises can work together for the common good of the environment, how to make their partnerships work effectively is another key question. How To Make Partnerships Work Secondly, courage and open-mindedness—many governments and NGOs have been sceptical about working with the private sector, worrying about being labelled as 'endorsing a commercial product'. But, for the greater benefit of sustainability, partnering with private sector organizations, especially those who have made huge R&D investments, can speed up progress. The key is to ensure the outcome benefits all. There are more and more cases all over the world in which governments, private sector organisations and NGOs are engaging in constructive dialogues in order to formulate policies for the promotion of products that will benefit both environmental protection and economic development. Thirdly, willingness to invest into the future—the private sector should not be afraid to take bold steps in investing in R&D and undertaking ventures which may not bring immediate profits, but could bring good returns in the long run. It is these pioneering private enterprises who create innovative breakthrough products that can capture untapped opportunities when they arise. In this regard, governments can assist with the commercial viability of new technologies or ventures by buying innovative, environmentally-friendly products. Setting the right policy would also greatly help in shortening the lead time for business corporations to generate returns. Australians Can Lead the World in Sustainable
Developments From my previous dealings with different government departments and agencies—and with NGOs such as ACF, NCC, Landcare, and WWF—I can see that great expertise exists and that positive actions have been taken. Private sector industry colleagues have also been innovative in their thinking and business acumen. With all parties making effective contributions in their roles, it is almost certain that public-private-NGO partnerships would go a long way to champion environmentally sustainable causes. If there is any one country that can lead the world in sustainability development, that country is Australia. CK Life Sciences is dedicated and committed to developing
products and solutions for environmental sustainability. We hope
we can work closely with governments, NGOs and other industry colleagues
for the eventual benefit of mankind. |
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