Global value chain governance for resource efficiency building sustainable consumption and production bridges across the global sustainability divides

This paper looks at improving resource productivity at global value chains. Resource flows from its extraction through the manufacturing and use phase towards its end-of-life – increasingly crossing national boundaries. Effective improvement in resource productivity requires actions beyond a country’s territory. This article focuses on non-renewable resource flows and analysis how developed countries are involved in four distinct phases of global value chains, and how this involvement links to changes in resource efficiency. Resource extraction and associated early processes activities have been increasingly moved from developed to developing countries. Offshoring manufacturing activities also becomes a common phenomenon. Throughout these activities, lower rates of resource productivity during extraction and manufacturing are frequently observed, leading not only to international burden shifting, but most likely letting these burdens grow. If appropriate international measures across the global divides are applied, resource efficiency potentials could be realised through offshoring and global consumption and recycling could also offer opportunities for resource productivity. International actions to improve resource productivity can help to meet economic and environmental objectives at the same time over a global value chain. It could also safeguard countries against unintended indirect and side effects from the relocation of resource flows and help the private sector to benefit from opportunities in global markets for resource efficiency