Transition from the informal to the formal economy
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1 Transition from the informal to the formal economy
2 8 August: Ecological Overshoot Day On August 8, 2016, we have used as much from nature as our planet can renew in the whole year. Ecological overshoot = We use more ecological resources and services than nature can regenerate through overfishing, overharvesting forests and emitting more carbon dioxide into the atmosphere than forests can sequester. Turin, Italy September
3 Globally, 2 planets will be needed by 2050 Source: Turin, Italy September
4 Ecological Creditors and Ecological Debtors 1961 Debtor Creditor Source: Turin, Italy September
5 Ecological Creditors and Ecological Debtors today Debtor Creditor Source: Global Footprint = 1.6 Global Biocapacity Turin, Italy September
6 Main environmental challenges of our time AIR: ENERGY: BIODIVERSITY: LAND: WATER: WASTE: e.g. Pollution, ozone-layer depletion, climate change e.g. Access, efficiency, source e.g. Eco-system degradation, endangered species e.g. Soil degradation, desertification, deforestation e.g. Fresh water depletion, water pollution, ocean acidification e.g. Solid waste, chemicals and hazardous substances, e-waste Source: Turin, Italy September
7 Planetary boundaries Green area represents the safe operating space with proposed boundary levels at its outer contour Humanity has already transgressed three boundaries (climate change, the rate of biodiversity loss, and the rate of interference with the nitrogen cycle). Source: Rockstrom et al. (2009)Ecology and Society 14(2): 32. [online] URL: Turin, Italy September
8 How is labour affected by climate change? Climate impacts on workers and enterprises everywhere, however capacities to respond differ significantly Bangladesh, 2007, Cyclone Sidr disrupted several hundred thousand small businesses and adversely affected 567,000 jobs. Philippines, December 2014, Typhoon Hagupit affected around 800,000 workers, with their source of livelihood damaged or disrupted overnight. United States, 2012, hurricane Sandy left 150,000 workers displaced and employment was overall reduced by over 11,000 workers in New Jersey in Turin, Italy September
9 How is labour affected by climate change? Rising temperatures will lead to major disruptions in agriculture, especially in poor rural areas Agricultural production, including access to food, in many developing countries is projected to be severely compromised. E.g. in some African countries, yields from rain-fed agriculture could be reduced by up to 50%. This would further adversely affect food security and exacerbate malnutrition (source: IPCC) Limited access to improved seeds, fertilisers, technology innovation, irrigation systems, to make their crops more resilient. No insurance to protect workers from losses: a drought, a flood or an illness can cause poverty and hunger due to loss of livelihoods. Women farmers currently account for per cent of all food production in developing countries. Turin, Italy September
10 Population in millions Global social challenges Source: WBCSD Vision ,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Global population by type of area and by region billion Urban - Less developed Rural - Less developed Urban - More developed Rural - More developed Population in low- and middle-income countries earning US$ 4,000-17,000 per capita (purchasing power parity) Global unemployment, surpassing 200 million worldwide; Poverty: in 2010, estimated 942 million working poor nearly 1 in 3 workers worldwide living below the US$2 a day poverty line; Food demand: expected to increase by 60% in 2050 Access to basic services, such as energy, sanitation and social protection, and decent living standards considering that in 2010: 5.3 billion had no social security or protection 1.6 billion live without access to energy 1 billion were slum dwellers 2.5 billion lacked basic sanitation; Percent of global population million Sub-Saharan Africa South Asia Middle East and North Africa Latin America and the Caribbean Europe and Central Asia East Asia and the Social costs of natural hazards: 330 million are constantly exposed to the risk of flooding, and more than 260 million are affected annually by climate related disasters Source: UN (various) Turin, Italy September
11 GLOBAL SUSTAINABLE DEVELOPMENT AGENDAS Turin, Italy September
12 1972 The Human Environment (Stockholm) MULTILATERAL ENVIRONMENTAL AGREEMENTS 1972 The Club of Rome LIMITS TO GROWTH 1992 Sustainable development: Our Common Future (1989) SPIRIT AND VISION RIO CONVENTIONS and AGENDA The Future We Want GREEN ECONOMY SUSTAINABLE DEVELOPMENT GOVERNANCE Cornerstones of global agendas on sustainable development 2015 Paris Agreement on Climate Change ENGAGING ALL LEVELS of GOVs in AMBITION and ACTION Agenda and Sustainable Development Goals TRANSPARENCY AND ACCOUNTABILITY Turin, Italy September
13 GREEN ECONOMY in the context of sustainable development and poverty eradication (2012) Cultural Diversity Self-determination of peoples Broader measures of progress to complement gross domestic product Business role Fight against corruption Advancing integration, implementation and coherence Women Children- Youth Full and productive employment and decent work for all Climate Change Biodiversity Desertification Turin, Italy September
14 2015 Paris agreement on climate change Limit temperature increase to below 2 degrees and to strive for 1.5 degrees Global adaptation goal which includes enhancing adaptive capacity, strengthening resilience and reducing vulnerability Regular review and enhancement of ambition: Agreement includes a process for strengthening INDCs, new NDCs by 2020, and every 5 years thereafter Global Stocktake: Every five years, information on adaptation, mitigation and support will be reviewed in a global stock-take Climate Finance. Developed countries to continue mobilization goal of 100 billion and, by 2025, a new climate finance goal, starting with at least $100 billion per year. Transparency, Measuring and Reporting. All countries to report on emissions and efforts to reduce them and track progress on nationally determined contributions. Technology development and transfer. Established a Technology Framework to accelerate technology transfer and innovation Turin, Italy September
15 17 goals; 169 targets 2030 Agenda & Sustainable Development Goals Turin, Italy September
16 Goal #8: Decent work and economic growth Promote inclusive and sustainable economic growth, employment and decent work for all Among the indicators: economic diversification, MSMEs development, decoupling growth from environmental degradation, jobs for youth, labour rights, social protection, aid for trade Turin, Italy September
17 Why is Decent Work a global goal? New employment creation needs: Over 600 million new jobs need to be created by 2030 to keep pace with the growth of the global working age population. Decent work deficits: Over 60 per cent of all workers lack any kind of employment contract; Fewer than 45% of wage and salaried workers are employed on a full-time, permanent basis, and even that share is declining; By 2019, more than 212 million people will be out of work, up from the current 201 million; Need to improve conditions for the some 780 million workers (men and women) earning less than USD 2 a-day (below poverty line). Turin, Italy September
18 SDGs, sustainability and jobs Goal 7 Energy Ensure universal access to affordable, reliable and modern energy services Increase substantially the share of renewable energy in the global energy mix development China: 4 million jobs in renewable energies today, 10 million in 2020 Goal 12 Sustainable consumption and production Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle Europe: 1 percentage increase in resource use efficiency leads to up to 200,000 new jobs Goal 13 Climate change Strengthen resilience and adaptive capacity to climaterelated hazards and natural disasters in all countries South Africa: EPWP created over 4 million work opportunities during , many in adaptation related sectors (water management, flood control) Turin, Italy September
19 WHAT ARE GREEN JOBS? Turin, Italy September
20 Inclusive green economies UNEP defines a green economy as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities Premise: designing and implementing green economy policies will stimulate economic growth, reduce environmental risks, create new jobs and improve human wellbeing. Turin, Italy September
21 A green economy could deliver economic growth Global Growth Trends and the Green Investment Scenario Source: UNEP, Green Economy Report, 2011 Turin, Italy September
22 while reducing ecological scarcities and environmental risks Turin, Italy September Source: UNEP, Green Economy Report, 2011
23 and creating jobs! Source: ILO and ILSS, 2012, Working towards sustainable development. Opportunities for decent work and social inclusion in a green economy 15 to 60 million net jobs to be created Turin, Italy September
24 Rationale: job-creation potential Between 15 and 60 million new jobs can be created globally ILO s research: BAU scenario (ILO GEL model) Productivity level drop 2.4% by 2030; 7.2% by 2050 Shift to Green Economy (ILO GEL model) 0.5-2% Net job gains = million jobs globally Multi-factor productivity + by 1.5% by 2020; 5% by 2050 Significant gains from major sectors: agriculture, forestry, fishing, energy, resource-intensive manufacturing, recycling, buildings and transport Turin, Italy September
25 Working definition Jobs are green when they help reduce negative environmental impact, and lead to environmentally, economically and socially sustainable enterprises and economies. Green jobs are decent jobs in agriculture, manufacturing or service that: Improve energy and raw materials efficiency Limit greenhouse gas emissions Minimize waste and pollution Protect and restore ecosystems Support adaptation to the effects of climate change Turin, Italy September
26 In practice? Process Product and services Nature conservation Reducing energy and resource intensity Eco-efficiency Reducing and recycling waste Organic agricultural products (certified) Green textiles (green labelling) Eco-tourism (certified) Green construction (certified) Green financing Ecosystem support Natural resource management Turin, Italy September
27 World Renewable Energy Employment by Technology While growth in employment slowed compared to previous years, the total number of jobs in renewables worldwide continued to rise, in stark contrast with depressed labour markets in the broader energy sector Turin, Italy September
28 Where are jobs in renewable energy? Turin, Italy September
29 Although manufacturing is concentrated in a few leading countries (e.g. China, United States, Malaysia, Republic of Korea), part of the value chain of the sector are easy to localise: assembly, distribution, installation, after sales services, maintenance, and loan-payment collection. 115,000 jobs in the SHS value chain in Bangladesh in ,000 additional induced jobs in downstream businesses thanks to availability of solar electricity in rural areas Turin, Italy September
30 Green jobs are also decent Guaranteeing rights at work Respect of the ILO International Labour Standards -timberaction.org/home/ Creating jobs Equal opportunities, freely chosen, productive and gainful Extending social protection Non discrimination Decent salary, social protection coverage, occupational safety and health Promoting social dialogue Gender equality Freedom of association and collective bargaining Turin, Italy September
31 Group discussion Can you provide an example of: Environment Decent Work Turin, Italy September
32 HOW CAN GREEN JOBS BE PROMOTED? Turin, Italy September
33 2 examples Turin, Italy September
34 Recycling sector global overview 4 million workers are employed in the formal sector globally Approximately million people work as informal waste pickers in developing countries Recycling: less energy consumption and net employment gains (in comparison to traditional jobs in landfill or incineration of waste) Among the eight sectors, recycling is one of those with highest potential for job creation, particularly in countries whose recycling rates are currently low, as is the case in most developing countries and in Central and Eastern Europe. Informal recycling often involves hazardous conditions for waste pickers, many of whom live in poverty. Turin, Italy September
35 Environmental dimension Increasing waste generation limited space in final disposal areas Solid waste contributes to GHG emissions Recycling reduces pressure on extraction of raw materials Growing presence of toxic waste pollute water, soil and air Turin, Italy September
36 Economic dimension Eco-efficiency, sustainable supply chain management, lifecycle thinking, circular economy Direct savings from reduced waste generation, on-site recovery, production of useful byproducts Generation of self-employment in poor populations Waste pickers provide the largest portion of materials that re-enter the production process Turin, Italy September
37 Social dimension Experiences in developing countries, emerging economies show that precarious and informal work at the lower tiers of the recycling value chain can be integrated into the economy, to become: recognized occupations, with adequate wages, safe working conditions, forms of organization and voice and social protection and with the labour entitlements of formal employment Turin, Italy September
38 Comparison of materials recovery by the formal and informal sector, five cities Turin, Italy September
39 SWM informal sector - characteristics million informal waste pickers in developing countries Characteristic of urban settings Low education; unskilled High participation of women and children Precarious, hazardous work Source of income and livelihoods (survival) Not organized Social prejudice Historical involved in WM at local level economic savings for municipalities Turin, Italy September
40 SWM informal sector - challenges Working conditions hazardous, sometimes exploitative Risks to worker s safety and health, Risks to heath of surrounding communities Sometimes exploitative Gender issues (women; child labour) Employment security very low Job-of-last-resort for urban poor, marginalized groups Lack of organization, representation and bargaining power Little awareness at multiple levels Other types of waste recycling, e.g. e-waste Turin, Italy September
41 SWM informal sector: opportunities Economic savings for municipal waste management in developing countries Jobs for unskilled populations development of environmental services Coverage of service to informal/inaccessible urban areas Reduce negative impacts of waste Responsible for supplying recyclables to industry Fastest source of green employment demand of raw materials Inclusive sustainable development Turin, Italy September
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