The Concept of Green Economy in the Context of Sustainable Development. Patrick Mwesigye UNEP Regional Office for Africa

Transcription

1 The Concept of Green Economy in the Context of Sustainable Development Patrick Mwesigye UNEP Regional Office for Africa Regional Dialogue on Green Economy for WIO Island States Port Louis, Mauritius 4-5 October 2012

2 If we don t change our direction, we re likely to end up where we re headed Chinese proverb

3 What is a Green Economy? One of two themes of RIO+20: Green economy in the context of sustainable development and poverty eradication. Green Economy Report (UNEP, 2011) Green economy results in improved human wellbeing and social equity while significantly reducing environmental risks and ecological scarcities.

4 Green Economy on the international sustainable development agenda International Labour Organisation Green jobs programme Regional Economic Commissions: UNECA African Economic Conference 2011: Green Economy and Structural Transformation Regional Development Banks: AfDB Finance: African Green Fund African Green Growth Strategy International Financial Institutions: World Bank: Green Growth Approach to Development IMF: IMF Green Fund

5 Green Economy and Sustainable Development (Source: World Bank, 2012, Inclusive Green Growth)

6 What is good about the GEI? It focuses on the positive links between being green and economic growth/decent job creation/poverty reduction It promotes green sectors as new growth engines and enables developing countries to leapfrog into modern economies It has the potential to address multiple challenges facing the humankind 6

7 Blue Economy and Green Economy Blue Economy is an essential element of Green Economy as marine and coastal environment (the blue world) is captured in the UNEP Green Economy Report. Green Economy in a Blue World report: The report covers the impacts and opportunities linked with shipping and fisheries to tourism marine-based renewable energies and agriculture. findings underline that a shift to sustainability in terms of improved human wellbeing and social equity can lead to healthier and more economically productive oceans that can simultaneously benefit coastal communities and ocean-linked industries.

8 Green Economy and Sustainable Development Green economy is not a replacement to Sustainable Development. Green Economy is rather a path to Sustainable Development. Other aspects include: Sustainable Consumption and Production (SCP), Resource Efficient and Cleaner Production (RECP), Green Growth, Low Carbon Development

9 Why a green economy? Multiple crises reflecting inadequacy of existing development models: Prevalence of poverty despite significant economic growth Environmental degradation and resource scarcities Crises: financial, fuel and food Climate change

10 Planetary Boundaries - Operating space for humanity (Sources: Rockstrom et al., 2009, A safe operating space for humanity, Nature) The inner green shading represents the proposed safe operating space for nine planetary systems. The red wedges represent an estimate of the current position for each variable. The boundaries in three systems (rate of biodiversity loss, climate change and human interference with the nitrogen cycle) have already been exceeded.

11 Resource use and income (UNEP, 2011, Decoupling natural resource use and environment impacts from economic growth)

12 The future of our planet 2030: demand for food will increase by 50% 2030: demand for energy will increase by 45% 2030: demand for water will increase by 30% Source: United Nations, 2012, Resilient People, Resilient Planet: A future worth choosing Given the amount of natural resources that go into a given economic output, can we meet these increased demands in 2030?

13 Threats to WIO States

14 Reefs at Risk: A Map-Based Indicator of Threats to the World s Coral Reefs

15 Broad policy recommendations under Green Economy Investing in natural capital (natural resources) Improvement in soil fertility, water availability, ecosystem restoration, re-building fish stocks, etc. Promoting resource and energy efficiency. Promotion of renewable energy, efficiency in energy use in manufacturing, SCP (e.g. sustainable tourism), energy efficient buildings and transport, etc. Creating enabling conditions Sound regulatory framework, strengthening international governance, promoting investment and areas that stimulate green economy, addressing market failures and externalities, etc.

16 These provide opportunities such as:

17 .. a green economy stimulates growth, exceeding BAU over time GDP growth (%) Source: UNEP Towards a Green Economy: Pathways to sustainable development and poverty eradication A synthesis for policy makers

18 while reducing ecological scarcities and environmental risks Source: UNEP Towards a Green Economy: Pathways to sustainable development and poverty eradication A synthesis for policy makers

19 Need for change of direction Business As Usual; Transition management; Strong political commitment; Planning/financial commitments Institutional innovations; Social transformation; Promotion of green market and boosting green procurement and trade (African Ecolabelling Mechanism); Promoting experiences from developing a lowcarbon economy.

20 Employment potentials under a Green Economy Agriculture - 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 Source: UNEP Towards a Green Economy: Pathways to sustainable development and poverty eradication A synthesis for policy makers

21 UNEP global engagements on Green Economy

22 Measurement of a green economy Measurement is important. Traditional economic indicators provide a distorted lens of measuring progress. Thus, new indicators are needed: System of Economic and Environmental Accounting (UN Statistical Division) Adjusted net national savings (World Bank) Green Accounting or Inclusive Wealth Accounting Decoupling: resource and impact decoupling Percentage of investment in green sectors

23 Enabling Conditions Innovative and imaginative public policies create incentives for markets and direct private sector investment. Prioritize green investments Regulatory frameworks Capacity-building, Training Taxation, Smart market mechanisms Governance (both international and national)

24 Well-designed regulatory framework: Creates rights and incentives for green economic activity. Removes barriers to green investments Regulates harmful & unsustainable behaviour. Reduces regulatory and business risks & increases the confidence of investors and markets.

25 A Wide Global Network UNIDO UNEP UNDP G8+5 Green Economy Report Demonstrating that Greening is a new engine for growth, sizing sectoral opportunities, addressing hurdles & enabling conditions ILO CBD 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 ITC Regional Commissions Business & Civil Society Groups Universities Regional Forums Countries Multilateral Institutions 25

26 Conclusions Green economy promotes resilient economic growth that is socially inclusive. This is a path to Sustainable Development. Green economy also presents opportunity for structural transformation of economies.

27 UNEP WEBSITES and PUBLICATIONS GEI : Environmental Governance : language/en-us/default.aspx Green Jobs Report, September Green-Jobs-Report.pdf Global Green New Deal Report, December UNEP Policy Brief on the GGND, March f

28 Thank you!! Further information on green economy from