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  • 2002 / 2003


    A N N U A L R E P O R T

    Our Vision

    Our Mission

    B E T T E R L I V I N G F O R A L L S U S T A I N A B L Y .

    T O C H A M P I O N I N N O V A T I O N , E N A B L I N G S O C I E T I E S T O L I V E S U S T A I N A B L Y .

    2002 / 2003 Annual R

    eport of the International Institute for Sustainable Developm


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  • The International Institute for Sustainable

    Development contributes to sustainable development

    by advancing policy recommendations on international

    trade and investment, economic policy, climate

    change, measurement and indicators, and natural

    resources management. By using Internet

    communications, we report on international

    negotiations and broker knowledge gained

    through collaborative projects with global partners,

    resulting in more rigorous research, capacity

    building in developing countries and better dialogue

    between North and South.

    IISD receives operating grant support from the

    Government of Canada, provided through the

    Canadian International Development Agency

    (CIDA) and Environment Canada, and from the

    Province of Manitoba. The institute receives project

    funding from the Government of Canada, the

    Province of Manitoba, other national governments,

    United Nations agencies, foundations and the private

    sector. IISD is registered as a charitable organization

    in Canada and has 501(c)(3) status in the United States.

    161 Portage Avenue East6th FloorWinnipeg, ManitobaCanada R3B 0Y4Tel: +1 (204) 958-7700Fax: +1 (204) 958-7710

    C-402, InternationalEnvironment House13, chemin des Anmones1219 ChtelaineGeneva, SwitzerlandTel: +41 (22) 979-9373Fax: +41 (22) 979-9054

    250 Albert StreetSuite 1360Ottawa, OntarioCanada K1P 6M1Tel: +1 (613) 238-2296Fax: +1 (613) 238-8515

    212 East 47th Street#21FNew York, NY10017 USATel: +1 (212) 644-0204Fax: +1 (212) 644-0206

    Printed in Canada on recycled paper, June 2003. Editor: Stuart Slayen, Manager, Publishing and Communications, IISD Design: Twenty3Below Graphic Design Translation (English to French): Louise Leroux Printing: Premier Printing

    Institutional Highlights 1

    From IISDs President and Chair 2

    What Have We Learned? Insights from IISDStaff 4

    FAQ about IISD 8

    Parting Perspectives 10

    Measurement and Indicators 12

    Knowledge Communications 14

    Climate Change and Energy 16

    Economic Policy 17

    Trade and Investment 18

    Reporting Services 20

    Natural Resources Management 21

    The IISD Team 22

    Auditors Report 23

    Consolidated Statement of Financial Position 24

    Consolidated Statement of Operations 25

    Note on Funding Arrangements 26

    Schedule 1 - Schedule of Operations by Activity Area 27

    Schedule 2 - Schedule of Designated Grants Committed 28

    The full audited financial statements are available at or by writing to IISD.

    E-mail: Web site:


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    2002 / 2003

    IISD entered into the fifth and finalstage of the Local Agenda 21 projectwith three municipalities in Romania.The project is designed to helpRomanian citizens and municipal staffimprove the quality of life in theircommunities. See page 12.

    In cooperation with the GlobalKnowledge Partnership andTakingITGlobal, IISD established theYouth Creating Digital OpportunitiesCoalition. The group seeks to realizethe potential of young people as lead-ers in using information and commu-nications technologies to achieve moresustainable development. See page 15.

    With Canadas ratification of theKyoto Protocol, IISDs ClimateChange and Energy Team has beenparticipating actively in the implemen-tation process. The institutes role inthe climate change arena is growinginternationally as well. See page 16.

    The five-year, multi-million dollarTERI-Canada Energy EfficiencyProject is drawing to a successful close.Most of IISDs work in the past yearfocused on green budget reform.Working with our partners at TheEnergy and Resources Institute inIndia, many interesting developmentstook place. See page 17.

    In partnership with theInternational Centre for Trade andSustainable Development, IISD pro-duced the Doha Round Briefing Series,a collection of 13 reviews of key issuesin the current round of World TradeOrganization negotiations. See page 18.

    IISDs Earth Negotiations Bulletincovered more than 30 United Nationsmeetings. See page 20.

    There were roughly five millionWeb page requests for Linkages( last year with traf-fic peaking during the World Summiton Sustainable Development. About 1.2million copies of the Earth NegotiationsBulletin and 720,000 IISD researchreports were downloaded.

    The Mining, Minerals andSustainable Development NorthAmerica project drew to a close thispast year. The MMSD-NA processinvolved about 150 people andbrought the issue of sustainable devel-opment to the attention of an entireindustry. See page 21.

    The IISD Research Library onlinedatabase now contains 20,000 docu-ments and links on sustainabledevelopment. The library also han-dled about 1,000 requests for infor-mation and 400 interlibrary loanslast year. The Weekly Journal Review,an electronic mailing list derivedfrom 125 peer-reviewed journals onsustainable development, now has1,700 subscribers.

    The institute earned $8,331,750 indesignated grant revenue, an eight percent increase over last year. See page 27for a breakdown by activity area.

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  • I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T


    Jacques Grin(Canada), Chair

    David Runnalls(Canada), President

    Edward S. Ayensu(Ghana)

    James Bruce(Canada)

    James Carr (Canada)

    Eleanor Clitheroe(Canada)

    Angela Cropper(Trinidad and Tobago)

    Christian Friis Bach(Denmark)

    Nicolas Imboden(Switzerland)

    Aban Marker Kabraji(Pakistan)

    Ashok Khosla (India)

    Rosemarie Kuptana(Canada)

    Huguette Labelle(Canada)

    Elizabeth E. May(Canada)

    Mark Moody-Stuart(United Kingdom)

    Bob Page (Canada)

    Edward Schreyer(Canada)

    Board of Directors



    With some 100 heads of state and gov-ernment gathering in Johannesburgfor the World Summit on SustainableDevelopment (WSSD) in August, thispast year was to have represented afresh start for sustainable development.

    Indeed the side events at WSSDwere a great success, illustrating themany actions that governments, civilsociety and the business communityare taking to implement sustainabledevelopment. By contrast, though, theofficial negotiations were disappoint-ing, characterized by a number ofheroic statements with few specifictimelines and even fewer financialcommitments. One success was theagreement among virtually all coun-tries on the critical link between ahealthy global environment and the

    elimination of mass poverty in thedeveloping world. This is familiar ter-ritory for IISD. It lies at the heart ofour Economic Policy activities.

    Based on the work of Nobel LaureateAmartya Sen, IISD developed a poverty-environment framework which wasendorsed by the Governing Council ofthe United Nations EnvironmentProgramme. The UNEP GC alsoadopted a workplan to demonstrate theapplication of this framework in Africaover the next three years. IISD expectsto advise and to play a leading role incoordinating the related network andin conducting country studies.

    Prime Minister Jean Chrtienannounced at WSSD that Canadawould ratify the Kyoto Protocol. This

    touched off a spirited national debateculminating with Parliaments ratifica-tion in December. IISD played animportant role in this debate throughfrequent media appearances andthrough our close association with theCanadian and Manitoba governmentson the issue. We have also been active-ly exploring the links between climatechange and development through ourwork on a Clean DevelopmentMechanism project in Chile and ourcollaboration with the Centre forInternational Climate andEnvironmental Research (CICERO) ofNorway and The Energy andResources Institute (TERI) of India onthe impacts of climate change andglobalization on Indian agriculture.

    Charles Hantho(Canada)

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  • I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T


    Advisory ParticipantsNorm Brandson, Deputy Minister, Manitoba ConservationJames Eldridge, Clerk of the Executive Council, Province of ManitobaLen Good, President, Canadian International Development AgencyAlan Nymark, Deputy Minister, Environment CanadaMaureen ONeil, President, International Development Research CentreMary Simon, Ambassador for Circumpolar Affairs (DFAIT)

    Friends of the InstituteGro Harlem BrundtlandJos GoldembergSir Shridath Ramphal

    Distinguished FellowsArt Hanson, Senior ScientistJim MacNeill, Chair EmeritusMaurice Strong

    Founding ChairLloyd McGinnis

    Our collaborative styleThis spirit of partnership is essential toour institutional health and perform-ance. If sustainable development is ourpurpose, collaboration is our style.From