SDG 12 – Ensure sustainable consumption and production patterns

Continuing to resolutely pursue the sustainable development agenda

The world lives on far too much. The human footprint on the consumption of resources is enormous and growing, albeit at a slower pace than a few years ago. Between 2000 and 2022 alone, the global footprint – raw materials generated to cover final consumption – increased by more than 71% to 98 billion tons, according to the United Nations. In 2022, electrical waste generated almost 8 kg per capita, of which less than a quarter was collected and managed in an environmentally friendly way. In the same year, more than 1 billion tons of food was wasted worldwide, while hundreds of millions of people went hungry.

So it is easy to imagine how large the footprint will be in just a few years if we do not radically change course. Our production and consumption patterns are not sustainable, especially when the world population is expected to rise to nine or ten billion people at some point. The Club of Rome came to this conclusion long ago in its legendary 1972 report “The Limits to Growth”. The international community responded to that realisation by establishing sustainable development as an objective at the Rio Summit in 1992 and later anchoring it in the Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs).

However, it is also clear that economically disadvantaged countries have a good deal of catching up to do when it comes to production and consumption of goods. The number of people suffering from poverty, hunger and lack of access to energy continues to be unjustifiably high. Accordingly, the solution cannot just be to curb consumption; instead, we will need to find ways to align the entire economic system with sustainable principles to create green economies. Such solutions can grant people access to the things they need to lead safe and autonomous lives without overburdening the planet in the process.

Green economy, green recovery

KfW supports this type of transformation towards green economies through its work in Germany and in its partner countries. This progress is made in many different ways: for instance, KfW funds are used to build warehouses and cold storage centres so food that has already been produced does not go to waste, as more than 13% of it does at present globally.

Other examples include more efficient irrigation methods, such as in Mali, projects for sustainable fishery in Mauritania, greater energy efficiency in buildings and electrical appliances in Mexico, or promoting sustainable agricultural production methods in Latin America and Africa, as is done through the eco.business Fund. Preventing waste and establishing a circular economy are also among the goals KfW is promoting with relevant projects, e.g. via the Caribbean Biodiversity Fund and the Clean Oceans Initiative.

In KfW's opinion, the effects and aftermath of the coronavirus pandemic, which posed an immense challenge for the entire world, offer a good opportunity to "build back better", i.e. successively shifting production and consumption patterns towards sustainability. KfW is also committed to this, as well as to promoting Fairtrade and sustainable supply chains.

In 2024, KfW Development Bank provided new financing totalling almost EUR 1.5 billion, which is expected to contribute to achieving SDG 12. With the financing agreements signed in 2024, more than 34,000 companies are expected to introduce or expand internationally recognised sustainability standard systems for production in the coming years. It is also expected that over 245,000 tonnes of waste per year will be sent for regulated recycling, treatment and/or disposal.

“Until now, climate targets have been secondary to land use”

Prof. Martin Herold from the German Research Centre for Geosciences (GFZ) Potsdam observes changes in the earth’s surface and its land use. He knows where forests are felled and for what purpose. In this interview, he explains how his research is contributing to greater supply chain transparency.

Circular economy: how we protect resources

More and more people on earth are consuming more and more resources. Raw materials are becoming scarcer and the amount of waste is increasing. The circular economy is seen as a solution to the global waste problem, slows down the consumption of resources and reduces climate-damaging greenhouse gases. Our animated film shows how this can be achieved.

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