The United Nations 2030 Agenda for Sustainable Development is a universal plan of action for people, planet, prosperity, peace and partnerships. It calls for radical changes that reduce poverty and inequality, while at the same time tackling environmental issues that undermine social goals. To achieve success by 2030 will require an integrated, indivisible and transformative approach that embraces the three dimensions of sustainable development equally – economic, environmental and social.
Embarking on such an integrated approach to sustainable development is crucial for a country like Mozambique. The welfare of Mozambique’s population, the country’s economic growth and the achievement of development and poverty reduction goals are intimately bound to the sustainable use of natural resources including land, oceans, forests and minerals. Nationwide, over 82% of jobs depend on natural resources and it is estimated that natural capital contributes up to 50% of Mozambique’s Gross Domestic Product (GDP).
However, unsustainable use of natural resources is undermining the social and economic benefits derived from natural capital. In 2012, Mozambique’s Ministry of Environment together with the Poverty-Environment Initiative of UN Environment and the United Nations Development Programme took a close look at how the economy was treating natural resources. It carried out two studies: An economic valuation of natural resources; and, a public environmental expenditure. The assessments found that the costs of environmental degradation and the inefficient use of natural resources is approximately 17% of GDP annually but only 9 % of GDP annually would be required to remedy these damages. However, the average environmental expenditure for the period 2007-2010 was found to be only 1.4% of GDP. That is, expenditure is far below what would be justified on economic terms alone. Such economic paradoxes go to the very core of the sustainable development debate and the interlinkages between social, environmental and economic aspects.
”While the expenditure level shows that Mozambique is investing in sustainability, it also shows that more effort is needed. Enhanced information on environmental expenditure is a first step towards improving investments in sustainability, as it will allow for more precise analysis. We are currently working with the sectors to design a strategy to improve the level of budgeting for sustainable development in Mozambique.” Reinaldo Mendiate, Director of Planning, Ministry of Environment, Mozambique, 2013.
The Government of Mozambique is determined to achieve inclusive sustainable development by adopting an integrated approach to development planning and budgeting. A range of tools to enhance the integration of the three dimensions of sustainable development in national and sector plans and budgets have been adopted with support from the Poverty-Environment Initiative. These include a planning matrix for cross-cutting issues including environment and gender, a budget code on climate change and capacity building of environmental focal points in sector ministries and the Ministry of Economy and Finance.
The use of the tools and approaches has ensured that national and sector plans promote inclusive sustainable use of natural resources, such as activities aimed at enhancing sustainable artisanal fishing practices, mitigating environmental impacts of artisanal mining, promoting conservation agriculture and replacing charcoal with cleaner energy sources. One of the five priority areas in the country’s five year national development plan (PQG) 2015-2019 focuses on the sustainable and transparent use of environment and natural resources, with an explicit focus on reducing local communities’ vulnerabilities to climate change.
The environmental focal points in the Ministry of Finance have played an important role in championing the inclusion of environmental sustainability in Mozambique’s budget processes. In 2014, the government introduced environmental budget codes and to date, the codes are being used by at least 21 government institutions. These codes have enabled the government to easily assess its budget allocations and expenditure on climate change, and improve the analysis of public environmental expenditure. Over the period 2014-2017, budget allocations coded with the environment and climate budget codes ranged from 0.4 to 2.2% of the total government budget with a significant and steady increase every year.
Mr. Alcino Araujo, of the National Directorate for Planning and Budget, explains the importance of the budget codes and how it contributes to policy and budget coherence across sectors: “I believe that the introduction of budget codes for cross-cutting issues (like climate) was very brilliant – transparently responding to the new PQG 2015-2019 priorities. With a single “click” it is possible to verify allocated resources and who specifically responded to environmental and climate change objectives”
Increasing investment in the sustainable use of the environment and natural resources not only has a positive impact on environmental quality, but also helps reduce poverty and contribute to economic growth. In the province of Zambezia where riverbank erosion is a major problem, the adoption of ecosystem based approaches has prevented community relocations and people are now able to concentrate on income generating activities inspired by sustainable agriculture practices. Providing the right support to communities and local governments to deal with environmental degradation and to benefit from sustainable natural resource use is essential to sustain livelihoods and ensure food security.
The example of Mozambique demonstrates how an integrated approach to social, economic and environmental sustainability requires strong national ownership, capacity building and cross-sector government coordination. The case also demonstrates the catalytic role that the United Nations and other development partners can play in stimulating integrated approaches by providing evidence and supporting the development and the implementation of mainstreaming tools and practices. Indeed, for any country, cross-sectorial integrated approaches will be essential for successful implementation of the 2030 Agenda for Sustainable Development at the national level.
Looking forward, the Government of Mozambique will undertake a mid-term review of the five year development plan (PQG) to assessment how progress can be made towards key national development goals and related UN Sustainable Development Goals in an integrated manner. In particular, it will look at how national development plan priority area number 3 - Promote jobs creation, productivity and competitiveness, which aligns with the spirit of SDG 8, can be achieved in an environmentally sustainable manner (as per PQG priority area 5 and SDGs 14 and 15) and to reduce poverty. The Poverty-Environment Initiative is supporting the assessment.
