Green Economy · A Green Economy is one that results in increased human well-being & social equity,...
Transcript of Green Economy · A Green Economy is one that results in increased human well-being & social equity,...
Green Economy
what is it? Why? and how?
A Green Economy is one that results in increased human
well-being & social equity, while significantly reducing
environmental risks & ecological scarcities.
A Green Economy is the economic vehicle for sustainable
development.
A Green Economy has strategies to end the persistence of poverty.
It is a new economic paradigm that can drive growth of income and
jobs, without creating environmental risk.
What is a Green Economy?
1. Conceptual clarity: Parallel political and substantive
debates on GE led to various interpretations and
precautionary negotiating positions compromising the
conceputal calrity which still exist even after Rio+20.
2. Missing macroeconomic link of environmental
measures: While environmental considerations have
been incorporated into various policies and plans, their
macroeconomic implications are not well analyzed.
3. GE is a transformational change, it needs broad
partnerships: It requires thinking beyond GDP and
actions beyond three pillars of SD put in silos.
Green economy
In 2009, global GDP reached US$58.22 trillion and yet, almost 80% of humanity continues to live on less than US$ 10/day.
The poorest 40 percent of the world’s population produce only 5 percent of global income.
All kinds of services provided by poor people in terms of natural resource management are not being taken into account, and neither is the way in which environmental degradation affects the poor.
The threat to the planet and inequality go hand in hand.
Income distribution under the
current growth scenario
UNEP’s Green Economy Report
Investing or reallocating just 2% of global GDP in 10
key sectors can kick-start a transition to a low-carbon,
resource-efficient economy.
Investing in natural capital,
resource and energy efficiency
can lead to:
• Higher rates of GDP
growth over time and
enhanced wealth
• Natural capital stocks
• Reduced poverty
• Decent employment
UNEP makes use of system dynamics modeling tools (T-21) to assess the
impact of policies in terms of economic growth, social inclusion / job
creation and environmental sustainability.
Growth: the green economy
scenario exceeds BAU over time
SIDS economies are vulnerable
Economies in small states have key common
characteristics:
1. Small population, market and geographic size hence the
need to export to realize economies of scale.
2. Limited resource base and reliance on few natural
resources: fishery, agriculture, minerals… hence
3. Narrowness of output and exports
4. Openness to trade and often dependency on imports
(food and energy) hence a trade balance
5. Vulnerability to natural disasters and external economic
shocks.
Source: UNCTAD, Least Developed Countries Report 2010
Pacific Challenges – Growth
Pacific Challenges – Poverty
Pacific Challenges – Land Tenure
Pacific Challenges – Deforestation
and Runoff
Pacific Challenges – Fossil Fuel
Import Reliance
Green Economy Initiative (GEI)
TEEB
Demonstrating the value of
ecosystems & biodiversity,
capturing these values, and
reversing the vicious cycle
of environmental losses and
persistent poverty
Green Jobs
Sizing and
incentivizing
growth in green &
decent jobs
• Evaluating Biodiversity Business
• Evaluating Ecological Infrastructure
GGND investment, education &
training, metrics for green
employment growth
Decent jobs from Community-based
Conservation, PES/ IPES
implementation
Policy Insight
UNEP proposals to policy
makers on how
to “green” fiscal stimulus
packages
Country and Regional
Green Economy Roadmaps
Green Economy Report
Demonstrating that Greening is a
new engine for growth, sizing
sectoral opportunities, addressing
hurdles & enabling conditions
Green Economy and Poverty
Reduction
1. Over whelming majority of the poorest 2 billion people live on small
farms, close to forests or in coastal areas
2. Their wealth creation and business opportunities mostly depend upon
productive capacity of the nature (e.g soil fertility, reproductive capacity
of fisheries, regeneration of non timber forest products including
herbal, medicinal and aromatic plants, and wildlife.
3. Redirecting flows of capital and investments into building natural
capital have disproportionate positive impact on income of the poor.
A study by Uni of Essex found that sustainable agriculture
increases farm yields between 69-179%. A 10% increase in farm
yield can reduce poverty by 5% in Asia and 7% in Africa - much
higher than poverty reduction resulting from increase in
productivity in manufacturing or services sector.
1. Access to clean and sustainable energy is fundamental for poverty
reduction. About 3.5 million people die each year from respiratory
illness due to harmful indoor air pollution).
2. GE proposes use of economic instruments to attack energy poverty and
catalyse development of clean energy source. Some major instruments
include phase out of fossil fuel subsidies, establishing a price on carbon
and substantial investment from the private sector in off grid renewable
energy sources.
Green Economy and Poverty
Reduction (2)
Energy subsidy reform or removal needs to contain
measures to protect or compensate the poorest
people for any negative impacts. Alternatives to
subsidies, such as cash transfers, can also be
considered to enable chronically poor people to
access modern energy services.
Massive potential with energy saving
In a country such as Senegal, a 100% replacement of installed incandescent lamps with compact fluorescent lamps at an estimated cost of $ 52 million, could deliver annual energy savings of 73% and cost savings of nearly US$ 30 million
Seizing new trade opportunities
185,000 ha, 45,000 farmers (2004)
60%/ 359% increase
296,203 ha/ 206,803 farmers (2008)
US$ 22.8 mil (2007/8)
US$ 6.2 mil (2004/5)
US$ 3.7 mil (2003/4)
48-68% less emissions and
carbon sequestration
The global
market:
97% of buyers in
OECD countries;
80% of
producers in
Africa, Asia and
Latin America
A $ 50 bn
market in 2007
growing at 10%
per year The case of Uganda
19
key policy drivers at the domestic level
Providing support to exporters to meet standards in international markets
Creating, maintaining and enforcing a stringent domestic standards
Investments and reforming fiscal policy (e.g. phasing out environmentally harmful subsidies) and employing new market-based instruments (e.g. green public procurement)
Promoting innovation (i.a. investment in education and training, support for R&D)
Policy and regulatory frameworks
Government regulations and standards will provide the
overall policy framework to encourage a transition to
a green economy.
A clear, predictable and stable policy environment can create
the confidence required to stimulate private investment.
Example: In Kenya, investment climbed from virtually
zero in 2009 to $1.3 billion in 2010 across technologies
such as wind, geothermal, small-scale hydro and
biofuels - driven by a feed-in-tariff policy.
A proactive engagement of government, industry and
consumers would enable countries to fully participate in
shaping the norms for environmentally sound goods and
services.
Opportunities of reducing environmental
degradation: economic benefits
(Source: World Bank, 2012, Inclusive Green Growth)
Opportunities: Building on natural
capital assets
• Fishery, sub-soil assets, cropland, timber
resources, pastureland, non-timber forest, and
protected areas form an essential aspect of
economic activity.
• A number of studies have underscored the
larger gains that could be achieved by expanding
investments to enhance natural capital.
Source: WB 2006, where is the wealth of
nations? Measuring capital for the 21st century
Employment opportunities under Green Economy
Agriculture & Fishery- shifting to sustainable agriculture could increase global employment by as much as 4% by 2050
Forests - forest conservation and reforestation could boost formal employment in this sector by 20% by 2050
Transport - improved energy efficiency across all transport modes combined with modal shift would increase employment by about 10% above business-as-usual by 2050
Renewable Energy - expansion of renewables and investments in energy efficiency could generate employment that is 20% higher than business as usual by 2050.
Source: UNEP 2011. Towards a Green Economy: Pathways to sustainable development and poverty eradication – A synthesis for policy makers
• Official request received from government.
• Stakeholder consultations involving Ministries of Environment, of Economic
Planning / Finance and others, representatives of civil society and the private
sector.
• Green Economy Scoping Study (GESS), evaluating resource scarcities and
environmental risks, stocktaking of policy frameworks, identify possible pathways
for transition and investment options to enhance growth, preserve natural capital
and create jobs.
• Green Economy Assessment (GEA), evaluating through quantitative modeling
the potential of different investment scenarios and identify the policies required
to support them.
• Support national development planning processes to mainstream the
recommendations from the GESS and the GEA.
• Assist in the mobilization of funding.
Green economy country
engagement strategy
Current Green Economy Engagement
Partnership for Action on
26
Partnership for Action on Green
Economy (PAGE)
Vision
Objectives
Joint GE Advisory by UNEP, ILO, UNIDO and UNITAR for accelerating and improving the transition to socially inclusive, resource efficient, low-carbon economies
• To strengthen the capacity of Governments and other
stakeholders to manage the transition to socially inclusive,
resource efficient, low carbon economies
• To provide a springboard for action on commitments made
at Rio+20
• To foster cooperation, pool resources, and ensure
coherence between the activities of various stakeholders
while drawing upon the best of their respective expertise
and political leverage
UNEP has a long-standing partnership with ILO’s green jobs
programme, which covers issues like training and capacity
building and transitional support during the reallocation of jobs
from energy-intensive to green sectors.
New Requests for PAGE Assistance
New Requests: Angola, Bangladesh, Bosnia and Herzegovina, Colombia, Comoros, D.R. Congo,
Dominica, Kazakhstan, Mauritius, Mongolia, Nepal, Pakistan, Peru, Seychelles, St Vincent and the Grenadines, Tunisia, Ukraine
Final words
• Return on investments under BAU will
continue to decrease, mainly owing to the
increasing economic costs of environmental
degradation;
• The increasing cost of the externalities will
initially neutralizing and eventually exceeding
the economic and development gains; and
• By greening economies, more calories per
person per day, more jobs and business
opportunities especially for the poor, and higher
market-access opportunities, especially for
developing countries, will be available.
Thank You
You cannot solve the problem with the
same kind of thinking that created the
problem. Albert Einstein
www.unep.org/greeneconomy Thank you to UNESCAP’s “Green Economy in a Blue World – Pacific Perspectives 2012” for
many Pacific facts and figures.