Green Economy Initiatives- Regional Perspectives

Dr Subrata Sinha, UNEP, Bangkok

Asia and the Pacific

40% of Global Economy

Rest of theworld

AsiaPacific

Over 60% of Population

Rest of theworld Asia

Pacific

Over 70% of Poor

Rest ofthe world

AsiaPacific

950 million still in poverty 584 million undernourished 480 million no access to safe drinking water 1900 million no access to safe sanitation Energy consumption increased by 50%

between 1996 and 2006 One-meter sea level rise would displace 100

million people Asia shares 34% of global GHG emissions

Subregion Agency Additional

Central Asia ISDC ECO

NE Asia TEMM NEAC, NESPEC, TUMEN, NOWPAP

South Asia ICIMOD, SAARC, SACEP

SAS, BIMSTEC

SE Asia ASEAN, GMS, MRC COBSEA, BIMSTEC

South Pacific SPREP SOPAC Forum

Energy demand

Resource Use and EfficiencyResource Use and Efficiency

Asia and Pacific region is world’s largest resource user – growing “consumer class” increasing demand for food, water, consumer goods, energy, housing constructions, other infrastructure

Figure below presents the Domestic Materials Consumption for the Asian and Pacific region, rest of the world, and the world, 1971–2005

Forest area change

In Asia small-scale agricultural enterprises were responsible for forest area change (percentage of total)

Source: GEO 3

Asia-Pacific – stark reality

• Limited Bio-capacity – Productive area, arable land, freshwater

availability per capita in A-P are all less than rest of the world

• Deepening Ecological Deficit– Ecological Footprint is surpassing Bio-

capacity

What is the future without change?(The business as usual path)

By 2030 By 2030 – Global energy Global energy demand updemand up by 45% by 45% – Oil Oil price up price up to US$180 per barrel to US$180 per barrel

(IEA)(IEA)– GHG GHG emissionsemissions upup 45% 45% – Global average Global average temperaturetemperature upup

6°C6°C– Sustained Sustained losseslosses equivalent to 5- equivalent to 5-

10% of global GDP 10% of global GDP – Poor countries will suffer Poor countries will suffer costs in costs in

excessexcess of 10% of their GDP of 10% of their GDP (Stern)(Stern)

Turning the Crisis into an Opportunity

• Economic recovery must not longer be designed to simply “reboot” the economy. They should be seen as an opportunity to transform the vicious cycle of climate change and over-reliance on fossil fuel as energy source into a virtuous cycle of climate action and low carbon economic growth. 

• Investing in green economic sectors, low carbon technologies, and ecological infrastructure could bring about recovery and lay the foundation for future sustained growth.

• A low carbon green growth will also reduce the threats of climate change and energy insecurity, contribute to poverty reduction and improve human well-being while renewing the earth ecological capacity.

Shifting to a Green Economy

• Moving towards low carbon and resource efficient economy with investment in nature capital

• Significant international momentum for transition to a green economy

– G20 reaffirmed their commitment to “move toward greener, more sustainable growth” (Sept 2009)

– United Nations Conference on Sustainable Development in 2012 (Rio+20) will include theme on “green economy in the context of sustainable development and poverty eradication”

– CSD 18th and 19th sessions will examine priorities and needs for shifting to sustainable consumption and production

– UNEP GC 2010 focus on green economy

– 6th MCED focussed on green growth

What is a Green Economy?

• Increase in Increase in green green investmentinvestment

• Increase in quantity Increase in quantity & quality of jobs in & quality of jobs in greengreen sectors sectors

• Increase in share of Increase in share of greengreen sectors in sectors in GDPGDP

• Decrease in Decrease in Energy/resource use Energy/resource use per unit of productionper unit of production

• Decrease in Decrease in Environmental cost of Environmental cost of production/consumptiproduction/consumptionon

• Decrease in wasteful Decrease in wasteful consumptionconsumption

UNEP Green Economy Initiative Designed to assist

governments in “greening” their economies by reshaping and refocusing policies, investments and spending towards a range of sectors– such as clean technologies,

renewable energies, water services, green transportation, waste management, green buildings and sustainable agriculture and forests.

Green Economy and Climate Change

Challenges:

• Business-as-usual risks increasing carbon dioxide emissions by 130% by 2050 and raising average global temperatures by 6˚C

• Emissions linked to deforestation and forest degradation account for nearly 20% of global greenhouse gas emissions

Opportunities:

• In 2008, investments in renewable energy generation ($140 billion) surpassed investments in fossil fuel power generation ($110 billion)

• Projected investments in renewables could generate 20 million jobs

• REDD-plus - investments in reducing emissions from deforestation, forest degradation, and sustainable management of forests

Green Economy and Ecosystem Services

Opportunities:

• Investing $45 billion in protected areas could secure vital nature-based services (e.g. carbon sequestration, flood control, etc.) worth $5 trillion annually

Green Policy initiativesGreen Policy initiatives

Asian countries have led the world in “green policies” as part of stimulus spending response during the recent economic/financial crisis – examples: China – Circular Economy Law 2009 - 100 new high speed trains,

expansion of the rail network to 120,000 km by 2020 Republic of Korea – Low Carbon Green Growth National Strategy Thailand – new ambitious targets in alternative and clean energy use Maldives: Carbon Neutrality by 2020 Indonesia – REDD benefits distribution policy 2009 Singapore – Sustainable Singapore Blueprint

Widespread regional uptake of 3R policy in Japan, Vietnam, Philippines, etc.

Source: Draft MCED Synthesis 2010

Carbon Intensity

• China – 40-45% reduction from 2005 levels• India – 20-25% reduction from 2005 levels• Indonesia – 26% reduction by 2020• RoK – 20% reduction by 2020

Green Growth

• Sustainable Infrastructure: Building codes, energy and waste efficiency (Singapore), decentralized power production ((Thailand, Indonesia, Philippines), eco-city (China)

• Green Markets, business: Green procurement (Japan , Korea), Eco-leveling (RoK), Cleaner Production Programme (Thailand, Vietnam)

Green Investment and Jobs• RoK: Suncheon City’s degraded ecosystem turned into

ecotourism attraction generated 64,000 jobs and economic benefits at $100 million. 80% of Korean economic stimulus packages promoting green jobs.

• India - employs 10,000 people in manufacturing wind energy equipment. Conversion of 6,000 buses in Delhi to CNG will create 18,000 new jobs

• China – employs 22 000 people in generating wind power, 55,000 in manufacturing solar photovoltaic cells, 600,000 in producing solar water heaters, and 266,000 in producing biomass energy. 440 billion dollar stimulus package to expand its renewable energy, 1/3 of global solar manufacturing capacity.

• Thailand: Greening its 180,000 vehicle manufacturing workforce

• Vietnam: $1 million investment to plant 12000 Ha mangroves will save $7 million per year of coastal infrastructure

Green Economy Policies

• New opportunities are emerging (green technologies, new markets, key industries changes, growing awareness, green jobs, community engagement, international governance, etc)

• Projected $8 trillion in investment over next 10 years – green economy

The activities

19

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 InsightUNEP proposals to policy

makers on how to “green” fiscal stimulus

packages

Country and RegionalGreen Economy Roadmaps

Green Economy Report

Demonstrating that Greening is a new engine for growth,

sizing sectoral opportunities, addressing hurdles & enabling conditions

Thank you for your kind attention

Dr Subrata Sinha

United Nations Environment Programme

sinha6@un.org