Poverty and Social Dimensions

in a Green Economy

Jan DUSÍKDeputy Director

Regional Office for Europe

• Ecosystems and biodiversity providing benefits for humankind

―Economic invisibility.―Complex and valuable ecological

infrastructure.

What is natural capital?

• A Green Economy is one that results in increased human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.

• UNEP Green Economy Initiative

What is a Green Economy?

• National development plans and strategies

• Key sectors of GE: Energy and Agriculture

• Low-carbon systems

• “Double dividend” policies: employment and green growth

• Labour market adjustment: high labour mobility-income security and national and education systems

• Weaknesses of a “business as usual” approach

Role of governments

Why a Green Economy?• Initiative born out of multiple crises

and accelerating resource scarcity

• An economic vehicle for sustainable development

• Can take advantage of new growth trajectories designed to be more socially inclusive, as well as responsive to poverty reduction and economic diversification objectives

• A new economic paradigm that can drive growth of income and jobs, without creating environmental risks

Least Developed Countries

• Low levels of carbon emissions

• Relatively low investments in technologies

• More dependent on natural resources → ecosystem degradation, resource scarcity and climate change challenges to ending poverty

• Investments, policy reforms and maximize local knowledge are needed

A Green Economy is an opportunity• Common interest between

developed and developing countries

• For achieving the MDGs

• Partnership of policymakers and business community

• Crucial to prioritize spending in sectors that can simultaneously promote social, economic and environmental gains

• ODA and South-South cooperation

Green Economy can reduce poverty and inequality• Inextricable link between poverty

alleviation and wise management of natural resources and ecosystems

• Ecosystem services provide 47% to 90% of the so-called ‘GDP of the Poor’

• Hence need to invest in natural capital as a source of growth and well-being

Natural-resource dependent sectors and ESS (2005)

Brazil Indonesia

India

Original share of GDP (%): agriculture, forestry, fisheries

6% 11% 17%

Share of ESS/non market goods of total income of the poor (%)

90% 75% 47%

Some challenges

• Multilateral trading system• Technological innovation

and transfer• Global intellectual property• Extent of private investment

in the development of environmentally-sound technologies

Enabling conditions for a Green Economy

• Establish sound regulatory frameworks

• Remove harmful subsidies (e.g. fossil fuels, fisheries)

• Prioritize green investment

• Utilize market mechanisms and taxation

• Build capacity through training and technology transfer

Enabling conditions for a Green Economy

• Transform consumption patterns – not just technology!

• Use poverty alleviation/MDG targets

• Policy coherence

• Private sector engagement

• Local authorities’ engagement

• Public awareness & mobilisation

• Intergovernmental co-operation

The Green Economy is on the agenda for Rio 2012

• UNCSD: a call for renewing efforts towards sustainable development and poverty eradication

• “Green Economy for sustainable development and poverty eradication” → recognising importance of the social dimensions of development

Thank you

Regional Office for Europe