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* Atleast Project Title is Required.
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Project No. |
CTI_103_2024A
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Project Title |
Sustainable Supply Chains in the APEC Region: Challenges, Progress, and Future Tasks
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Project Status |
Project in Implementation
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Publication (if any) |
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Fund Account |
APEC Support Fund
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Sub-fund |
ASF: Free Trade Area of the Asia-Pacific and Global Value Chains (FTAAP and GVCs)
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Project Year |
2024
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Project Session |
Session 1
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APEC Funding |
111,500
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Co-funding Amount |
150,950
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Total Project Value |
262,450
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Sponsoring Forum |
Committee on Trade and Investment (CTI)
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Topics |
Trade Facilitation; Conformance; Standards
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Committee |
Committee on Trade and Investment (CTI)
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Other Fora Involved |
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Other Non-APEC Stakeholders Involved |
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Proposing Economy(ies) |
Korea
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Co-Sponsoring Economies |
Australia; Canada; China; Japan; New Zealand; Peru; Philippines; Singapore; United States
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Expected Start Date |
01/07/2024
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Expected Completion Date |
31/07/2025
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Project Proponent Name 1 |
Sunghee Kim
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Job Title 1 |
Deputy Director
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Organization 1 |
Ministry of Trade, Industry and Energy
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Postal Address 1 |
Not Applicable
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Telephone 1 |
+82 10 7447 4866
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Fax 1 |
Not Applicable
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Email 1 |
balbali000@korea.kr
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Project Proponent Name 2 |
Minji Choi
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Job Title 2 |
Deputy Director
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Organization 2 |
Ministry of Trade, Industry and Energy
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Postal Address 2 |
Not Applicable
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Telephone 2 |
+82 10 7515 9128
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Fax 2 |
Not Applicable
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Email 2 |
mc0123@korea.kr
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Declaration |
Sunghee Kim
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Project Summary |
The intricate interconnection of global supply chains intertwines economies through complex networks, forming a layer of interdependence that drives economic growth. Despite its efficiency and cost reductions, this interdependent system faces challenges from, pandemics, climate change, and competition for industrial subsidies, revealing inherent vulnerabilities. In response to these challenges, APEC leaders have reaffirmed their commitment to fostering inclusive trade and investment, emphasizing alignment with environmentally sustainable policies. As indicated in the 2023 San Francisco Principles on Integrating Inclusivity and Sustainability into Trade and Investment Policy (SFP), APEC members pledged to strike a delicate balance between economic progress and environmental preservation, committing to advance these principles in the CTI report to APEC Ministers from 2024 through 2028. Leveraging APEC’s on-going initiatives, the project is specifically designed to promote best practices and provide guidelines to support coordinated climate action. Emphasizing the importance of providing technical assistance, capacity building, and fostering cooperation for economies vulnerable to climate change, it aims to enable proactive climate actions without hindering trade. Encouraging voluntary actions from member economies, this project will serve as a pivotal catalyst for enhancing the practical knowledge of industry professionals and policymakers in APEC economies on sustainable supply chains. Ultimately this initiative aspires to imprint the values of sustainability and inclusiveness in the APEC region. |
Relevance |
Region
The global supply chain, while efficient and cost-effective, is increasingly susceptible to a range of disruptions, from trade disputes to pandemics and climate change-related events. These vulnerabilities not only impact the immediate economic activities but also have long-term consequences on global trade stability and economic growth. APEC economies, given their significant role in global supply chains, face the challenge of navigating these disruptions while ensuring sustainable economic development. In particular, divergent regulatory practices and a lack of coordinated climate action across APEC economies can hinder effective responses to supply chain challenges. There is a need for best practices that support sustainable supply chain management and climate resilience. Coordinated action is essential for addressing cross-border challenges and ensuring that trade policies are aligned with climate goals. Other multilateral organizations, including the OECD and UNCTAD, also recognize the importance of addressing these challenges and are currently undertaking work in this area.
1. The proposed project will provide sustained benefits across APEC region by: 1.Enhancing the resilience of supply chains to withstand global disruptions, ensuring stable and sustainable economic growth.
2. Promoting environmental sustainability within supply chains, contributing to the global effort to combat climate change and preserve natural resources. 3. Fostering regulatory alignment and cooperation on climate action, enhancing the efficiency and effectiveness of responses to global supply chain challenges.
Eligibility and Fund Priorities
1)Meets the criteria of increasing transparency of existing and recently concluded RTAs/FTAs by advancing work under APEC Information Sharing Mechanism on RTAs/FTAs. This research includes quantitative analysis on existing RTAs/FTAs to promote information sharing mechanism in terms of resilient supply system.
2)Promotes GVC development and cooperation based upon following guidelines : This research addresses trade and investment issues that impact GVCs; cooperates on improving statistics related to GVC; enhances resiliency of GVCs; Strengthens collaboration with other stakeholders on GVCs.
Capacity Building
This project aims to enhance the capacity of APEC member economies, particularly developing ones, to engage effectively with sustainable supply chain practices and climate change mitigation strategies. Central to the project's capacity building efforts are: 1. Hosting a one-day forum that will bring together experts from various sectors to share knowledge and experiences related to sustainable supply chains. The forum will feature at least six speakers, ensuring a wide range of perspectives and insights. This forum’s outcomes will be incorporated into a subsequent research paper. 2. Producing a research paper that provides a comprehensive analysis of current environmental policies affecting global supply chains. This document will serve as a crucial resource for policymakers and stakeholders, offering policy considerations or recommendations to foster the adoption of best practices, environmentally friendly technologies, and socially responsible investments within APEC economies. By targeting these activities, the project directly contributes to APEC's capacity building goals by improving participants' understanding and ability to collaborate on sustainability and climate resilience within their supply chains. This approach not only supports the development of a robust APEC alliance but also ensures that developing member economies benefit significantly from enhanced knowledge and collaborative mechanisms to tackle shared challenges in sustainable development. |
Objectives |
1. Identify and categorize: At the first stage, this project aims to pinpoint and classify the latest environmental policies, drawing upon existing work on cataloging environmental policies, that global economies are adopting to mitigate or adapt to environmental challenges. 2. Examine APEC's efforts: This objective focuses on reviewing and appraising past and ongoing projects within APEC that address the sustainability and resiliency of supply chains. This could involve assessing their effectiveness, impact, and areas for improvement. 3. Seek superior approaches: This objective seeks to identify best practices and policy considerations, such as implementing environmentally friendly technologies, collective action to international environmental regulations, and promoting socially responsible investments. This would identify strategies that can be adopted to mitigate environmental risks and build resiliency in global supply chains. |
Alignment |
APECThe project addresses the importance of promoting sustainability in GVCs, which resonates with APEC's focus on sustainable development and environmental sustainability as highlighted in APEC Putrajaya Vision 2040 (PV2040), the actions set out in the Aotearoa Plan of Action (APA), and the 2022 Bangkok Goals on Bio-Circular-Green (BCG) Economy. By enhancing the sustainability of GVCs, the project contributes to APEC's overarching goal of fostering sustainable economic growth in the region. This project is strongly related to PV2040, where APEC members envision “an open, dynamic, resilient and peaceful Asia-Pacific community by 2040, for the prosperity of all our people and future generations.” It will contribute to securing dynamic and interconnected regional economy that aims for strong, balanced, secure, sustainable and inclusive growth. In this sense, this project also contributes to the Bangkok Goals that it outlines how to achieve its comprehensive and ambitious sustainability and inclusion objectives. In recent years, APEC leaders have continuously endorsed to support APEC’s collective “efforts to foster open, secure and resilient supply chains, enhance supply chain connectivity and minimise supply chain disruptions.” The 2023 APEC Leaders’ Golden Gate Declaration reaffirmed “our commitment to keep markets open and address supply chain disruptions, including by working to support our businesses in building secure, effective, resilient, sustainable, and open supply chains that create a predictable, competitive, and digitally interconnected Asia-Pacific region.” In specific, this project would be a sincere action to implement the SFP to strike a delicate balance between economic progress and environmental preservation. ForumThe project on sustainable supply chains aligns with the CTI's strategic goals by addressing key aspects of the Osaka Action Agenda and the APA, and advancing the PV2040. It directly contributes to CTI's efforts to mitigate trade and investment impediments and promotes environmentally sustainable practices within APEC economies. By focusing on regulatory practices and climate action, the initiative supports the APA's push for balanced economic policies that integrate environmental sustainability. Additionally, it underscores the PV2040's emphasis on inclusivity and sustainability, aiming to broaden economic participation across the region. This project is a strategic effort to enhance trade and investment while fostering sustainable economic growth, demonstrating a strong alignment with CTI's objectives for a resilient, inclusive, and sustainable APEC community. |
TILF/ASF Justification |
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Beneficiaries and Outputs |
Outputs
1) Research Paper: Research will be conducted prior to the forum which produce a Research paper. This will be self-funded. The paper will encompass the analysis of the global climate policies, the collection of the best practices including the other multilateral fora's research results, and ideas/suggestions on the APEC cooperation mechanisms. A consolidated report combining research paper and summary report will be disseminated via APEC publication.
2) One-Day Forum at SOM1 2025: One day forum (10-17 approximately) with at least 6 featured speakers with background in climate change mitigation policies that has impact on the supply chain, entrepreneurs in business field carrying out Environmental, Social and Governance (ESG), and representatives from the multilateral organizations (ASEAN, OECD, etc.) who manage the concerted efforts of the members. We will conduct a survey prior to the forum to reflect economies' interest, especially that of the co-sponsors, and will design the forum to suit its primary focus as the information sharing, capacity building and building sense of foundation for cooperation.
3. Summary Report: The summary report (no less than 15 pages excluding annexes) will be written. It will contain synthesis(summary) from the presentations/speeches, and implications(comment) from the participants. A consolidated report combining research paper and summary report will be disseminated via APEC publication.
Outcomes
1. Have examined existing policies and initiatives, and updated participants on the present dynamics surrounding the climate change. Participants gained awareness and knowledge on the current policies and initiatives. Also, raised awareness that it is critical to strike the delicate balance between mitigating the damage and maintaining sustainability of supply chains when designing a climate change policies.
2. Deepened understanding of how climate policies could promote the climate/environment friendly technology and carbon reduced technology. Raised understanding of the connection between global environmental policies and their impact on regional trade and investment flows, which affects the formation of the supply chain and have demonstrated the relationship between climate policies and supply chain formation.
3. Encouraged willingness of the member economies to cooperate regionally to ensure a sustainable and resilient supply chain in the face of climate change policies and in line with the priorities set by APEC Ministerial Meetings and ABAC. Increased awareness of APEC on what it can do as the most dynamic and flexible economic forum to respond to the critical interests of economies.
Beneficiaries
The primary beneficiaries of this initiative are policymakers, regulators, and government officials across the APEC region who are directly engaged in the development and implementation of trade, investment, and environmental sustainability policies. This project aims to equip them with the insights and frameworks needed to foster regional cooperation mechanisms for sustainable supply chains, emphasizing the critical role of coordinated climate action. Workshops and policy dialogues will facilitate the exchange of best practices and innovative strategies, enabling these key stakeholders to spearhead collaborative efforts that integrate environmental sustainability into economic development. Industry stakeholders, including businesses, supply chain managers, and entrepreneurs, are also the primary beneficiaries. The initiative will provide them with a platform to engage in the dialogue on sustainable supply chains and to contribute to the shaping of regional cooperation mechanisms. By participating in discussions and sharing their practical experiences, these stakeholders will gain strategic insights into aligning business practices with climate action goals, thereby enhancing their contribution to the region's environmental sustainability efforts. The secondary beneficiaries are researchers, academics, and non-governmental organizations (NGOs) involved in studying and advocating for sustainable supply chains and climate policies, and they will benefit from access to a wealth of knowledge, collaborative research opportunities, and the chance to influence policy through evidence-based recommendations. Their involvement will ensure that the cooperation mechanism is underpinned by the latest scientific research and best practices in climate action. |
Dissemination |
A publication comprising the research paper and the summary report will be made available online through the APEC publications page. The Knowledge Sharing / Capacity Building purposed Forum on Sustainable Supply Chains will be streamed online to registered participants to engage a wider range of stakeholders, including regulators, industry associations, businesses, academics and representatives from relevant international organizations.
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Gender |
Please see Project Proposal in Supporting Documents folder. |
Work Plan |
Please see Project Proposal in Supporting Documents folder.
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Risks |
Please see Project Proposal in Supporting Documents folder.
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Monitoring and Evaluation |
Please see Project Proposal in Supporting Documents folder.
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Linkages |
This project on sustainable supply chains aligns with several ongoing APEC initiatives, reflecting a commitment to fostering an open, dynamic, resilient, and peaceful Asia- Pacific community as envisioned in the PV2040. It builds upon the groundwork laid by the APEC Ministers Responsible for Trade, which emphasizes creating a resilient and sustainable future for all, including the implementation of the APA. Our project also resonates with the themes discussed in the 2023 APEC Ministerial Meeting, particularly the advancement of an interconnected APEC region through inclusive and sustainable trade policies. Our initiative will promote cooperation among APEC member economies to create sustained and resilient recovery from the pandemic, emphasizing the importance of a whole-systems approach along the supply chain. Insights from the National Center for APEC report on the state of APEC supply chains highlight the need for regional cooperation and future-readiness, which our project seeks to address by fostering dialogue and sharing best practices among APEC economies. To ensure robust engagement and collaboration, we will involve key APEC fora such as the CTI, and draw upon work from the APEC Alliance on Supply Chain Connectivity (A2C2).
This work will build upon existing work in other multilateral organizations including the OECD and UNCTAD.
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Sustainability |
To ensure the continued impact of the project after the APEC funding concludes, several follow-up initiatives and support mechanisms can be implemented. Firstly, a follow-up project could be designed to test the feasibility and practicality of the proposed concerted actions among APEC economies. This would involve pilot implementations and detailed case studies to validate the effectiveness of these actions in real-world scenarios. Secondly, the development of APEC supply chain sustainability could be continuously assessed by creating comprehensive indices that measure connectivity, sustainability, and resilience. These indices would provide a robust framework for monitoring progress and identifying areas for improvement, thereby ensuring that supply chain advancements are both measurable and transparent. Thirdly, regular networking events could be organized to foster ongoing cooperation among governments, academia, multilateral organizations, and businesses. These events would serve as platforms for knowledge exchange, collaboration, and the dissemination of best practices, thereby strengthening the collective capacity to address common challenges. The objectives of this project address critical, contemporary issues that necessitate sustained attention, policy innovation, and coordinated international efforts. To build on the project's outputs and outcomes, a structured plan for future actions should be established. This plan could include setting up working groups or task forces dedicated to specific aspects of the project, such as policy development, or capacity building. In addition, regular reporting and evaluation mechanisms should be put in place to track progress and measure the impact of these activities. Progress on the outcomes can be measured through a combination of quantitative and qualitative metrics. Quantitative metrics might include the number of new policies adopted, the extent of supply chain improvements, or the frequency and quality of international collaborations. Qualitative metrics could involve stakeholder feedback, case studies, and impact assessments. |
Project Overseers |
He has expertise in labor rights, taxation, and climate change fund.
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Cost Efficiency |
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Drawdown Timetable |
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Direct Labour |
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Waivers |
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Are there any supporting document attached? |
Yes
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Attachments
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