Pioneering New Development Path : Green Growth

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1 UN Office of Sustainable Development International Seminar on Strengthening Planning and Implementation capacities for sustainable development in post Rio Context 14~16 November, 2012 Pioneering New Development Path : Green Growth - How to develop Green Growth strategy and build proper governance for efficient implementation- Joosueb Joseph Lee Senior Program Manager Global Green Growth Institute

2 Major Milestones of GGGI s Journey

3 Vision and Mission of GGGI 3 Vision A world-class international organization dedicated to promoting and disseminating green growth worldwide, grounded upon partnerships between developing and developed countries & public and private sectors Mission 1. Mobilizes world-class technical support and builds local capacity for the design and implementation of green growth strategies 2. Provides an international knowledge-sharing platform for developing countries, evidence-based learning and policy innovation 3. Deepening cooperation among developed, developing and emerging economies countries, public and private sectors, and practitioners and scholars

4 GGGI s Unique Contributions 1. Solely dedicated to Green Growth 2. Bridging two different worlds : developing and developed : theory and practice : public and private 3. Sharing the experiences of compressed development (both good and bad practices) : generations of experiences still alive :can offer a wide spectrum of technologies (e.g. from coal briquettes to nuclear reactors ) 4

5 Moving forward and Moving fast A G20 Priority: Promote sustainable development with focus on infrastructure, energy efficiency, green growth and financing the fight against climate change. G20 Summit Los Cabos June 18 th -19 th The Creation of GGGI announced by President Lee Myung-Bak at the UNFCCC COP-15 Opening of GGGI Abu Dhabi Office GGGI is launched at the East Asia Climate Forum Green Growth Knowledge Platform Launch Rio+20 June 20 th -22 nd UNFCCC COP18 Qatar 26 th November to 7 th December Copenhagen, Denmark December 2009 Seoul, Korea Abu Dhabi, UAE June 2010 July, 2011 Mexico Jan, June 2012 Rio, Brazil June 2012 Doha, Qatar Nov Dec 2012

6 Inaugural Meetings of the Assembly and the Council October, Seoul Attended by the 18 member states of the GGGI Major decisions: appointed Director-General, elected 17 Council members and constituted Bureaus of the Assembly and the Council 6

7 Conversion into an IO GGGI as an International Organization GGGI hosted the Full Signatories Meeting in Seoul on September by gathering the 17 founding members for discussions leading up to the Inaugural Meetings in October. (Mexico joined on 12 Oct.) The GGGI has acquired a legal status as an International Organization as of 18 October and has organized the inaugural ceremony on 23 October right after the ministerial meeting of pre-cop of COP18, UNFCCC.

8 Three Pillars of GGGI s Green Growth Dissemination Capacity Building (sustainable implementation of green growth policies) ` PPP & pilot project (Sectoral & local level implementation)

9 Country programs Countries, 2 Regions, 26 Projects Morocco UAE Kazakhstan Mongolia Jordan India China Ethiopia Thailand Vietnam Philippines Peru Amazon Basin Rwanda Cambodia Indonesia South Africa On-going Scoping phase Selected 9 Mekong Brazil

10 Green Growth as a New Paradigm of development

11 The Way Forward: Green Growth The significant challenges we face cannot be resolved at the same level of thinking we were at when we created them. Albert Einstein Green growth is the new revolutionary development paradigm that sustains economic growth while at the same time ensuring climatic and environmental sustainability. It focuses on addressing the root causes of these challenges while ensuring the creation of the necessary channels for resource distribution and access to basic commodities for the impoverished (social inclusiveness). A green economy is one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. It is low carbon, resource efficient, and socially inclusive. Green growth means fostering economic growth and development, while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. 11

12 China and India Make Waves in the global midlle income trend < Projected shares of global middle-income class consumption, 2000 to 2050 > China India 31.4% 22.4% 0.7% 0.9% Source: Goldman Sachs 4

13 Who is most vulnerable to this climate challenge? Lack of Institutional Infrastructure and Technical Capacity to Mitigate Climate Change village near Patna, India.Jul 18, 2009(outlookindia.com) Bolivia Landslide, Photograph by David Mercado, Reuters Kampala Slums, lack of infrastructure (source: UN-HABITAT) Source:

14 Past 60 Years (from 1948) Next 60 Years (from 2008) Economic Growth Quantitative (traditional, fossil fuel-driven) Factor-intensive (labor & capital) More input = more output High dependency on foreign energy sources Aid recipient Miracle on the Han River Green Growth Qualitative (low-carbon, sustainable development) Innovation-based (new ideas) Less input = more output Energy self-sufficiency (renewable sources) Aid donor Miracle on the Korean Peninsula 14

15 Why Green Growth? : Solving the triple crunch! Climate Challenge Economic Slowdown Energy Challenge Economic Growth By around 2100, an increase in average temperature by 4 C in Korea will inflict more than US$45.5 bn of an cumulative economic damage. Over the last 100 years, the average temperature in Korea rise 1.7 C Korea s Growth Potential 70~ 79 : 9.4% 80~ 88 : 9.1% 89~ 97 : 7.4% 98~ 07 : 4.7% 08~ 12 : 3.8% <OECD> 12~ 17 : 3.5% 18~ 30 : 2.8% 31~ 50 : 1.6% + In 2011, Korea s imports of energy amounted to USD174bn, which is more than the value of all Korea s exports of ships, semiconductors, mobile phones, LCD displays, and computers. Dependence on energy imports is averaging 96%. Social Justice Environmental Sustainability Green Technology Green Job Creation Energy Security Climate Resilience 15

16 Green Growth path to a sustainable economy Economic Development Hoseok Kim(2012)

17 The same goal, but different development path C B A GGGI (2012)

18 Green Growth Planning, Governance & Policies

19 What blocks developing countries green efforts? Information Gap Technology Gap Institutional Gap Finance Gap 19

20 What blocks developing countries green efforts? Information Gap Lack of data and relevant information makes it difficult to devise, implement, plan and assess green growth policies It usually takes long time to establish relevant data survey systems and information analytic capacity Institutional Gap Green growth needs to be approached in comprehensive and coordinated manner. Appropriate incentives, harmonized policy measures, good governance, transparency, and political supports are key necessary conditions for successful green growth. Technology Gap Technology transfer and green innovation is the key driver of green growth. There are lots of barriers to utilize technologies in developing countries including intellectual property rights, institutional settings, and legal issues, etc. Finance Gap Implementing projects is far more important than any other issues in developing countries Proper financing tools and frameworks are essential, which can mitigate the risk and guarantee minimum level of benefit sin green growth programs. 20

21 Strategic options to overcome the challenges 1. Focus on Basic Capacity for implementing policies Build up statistics, data gathering systems, operational know-how, etc. 2. Greening Production (innovating factors of production) Move up the value-chain / Strategic R&D Investing clean-technology and focusing adequate technology transfer 3. Regulatory Reforms and Proper Incentives Incentivize private sector investors and consumers Reform regulatory systems & related standards/requirements, etc. Focus on the issues of the ecosystem payment 4. Institutional and legal set-up Establish appropriate policy coordination bodies Enhance intact monitoring and evaluating systems 5. International Collaboration / Private sector engagement Raise the right voices in international arena Promote Entrepreneurships in private sectors / Reforms in SOEs 43

22 General Principles in Green Growth Policy Direct investment by central government Guiding chain investment by private sector through large scale financial investment on infrastructure by central government Government Investment Regulations Proper regulation and full support Regarding environment as public property Securing basis to regulate any pollution activity and to prepare an institutional support to prevent any pollution activity Inducement / Incentives Ethical Convincement Change the citizenship and corporate awareness through green growth education and public promotion activity External Economy Internalization Promising method for new value creation through the costs associated with the reduction of environmental impacts and its consequential benefits infiltrated into market mechanisms Constraints to formulating the cost of complying environment friendly and restoring pollution Providing incentive or grant aid to guide introducing new market for private sector

23 Practical tips for effective Implementation Using external resources for reviewing Voices from business, NGO, scholars, experts, etc. Opening-up and sharing core information Supervision from the public and relevant stakeholders Clear goals setting and Prioritizing the issues Focusing on core value, vision, goals and projects Keep the goals simple and easy to understand Freedom to achieve clear goals Do not define the detailed tools or methods to achieve goals Legal authority and effective enforcement Regular review, multilayer evaluation, systematic approaches(code, index, etc.) 36

24 Core Driving forces for Green Growth Trinity

25 Thank you.