The role of green economy in sustainable development

Transcription

1 Ad Hoc Expert Meeting on The Green Economy: Trade and Sustainable Development Implications 7 8 October 2010 The role of green economy in sustainable development Presentation by Mr. Steven Stone UNEP Chief of Economics and Trade Branch United Nations Environment Programme - UNEP This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations.

2 The role of green economy in sustainable development Ad Hoc Expert Meeting on The Green Economy: Trade and Sustainable Development Implications 7 October 2010 Shutterstock Steven Stone, Chief UNEP Economics and Trade Branch Shifting to Green Economy 1. Green Economy Initiative Origins and Background Global crises provide an Opportunity to reconsider Traditional growth models Fuel Crisis Food Crisis Financial Crisis Global momentum for transition to a green economy G20 reaffirmed commitment to move toward greener, more sustainable growth (Sept 2009) UN CSD 2012 (Rio+20): green economy in the context of sustainable development and poverty eradication 1. GEI Conceptual Issues GEI s Mission Advising clients on Greening their Economies, by working with extensive partnerships of institutions and experts and using a range of research products infused with thought leadership Green Economy: The Need for Change Meeting the dual goals of sustainability High human development and low ecological impact Source: WWF Living Planet Report 2006 Meets minimum criteria for sustainability Source: United Nations Human Development Index

3 What Green is good Economy about the Working GEI? Definition A Green Economy can be defined as one that results in improved human well being and social equity, while significantly reducing environmental risks and ecological scarcities. 2. Green Economy Data Trends 3. GEI Analysis Green Economy and Climate Change Green Economy & Climate Change Scenarios for GHG emissions from 2000 to 2100 (assuming no additional climate policies are brought into effect and estimates of corresponding surface temperatures) 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 Business as usual risks increasing green house gas emissions by 130% by 2050 (IEA) and raising average global temperatures by 6 C (IPCC) Emissions linked to deforestation and forest degradation account for nearly 20% of global greenhouse gas emissions Opportunities Green Economy and Resource Efficiency Lost Capital Earth has lost 40% of forests over the 300 years. Source: FAO (2001; 2006) Since 1990, the world has lost roughly half of its wetlands, which slow floodwaters, protect uplands from erosion and improve water quality. Source: Moser et al. (1996) Source: Living Planet Report % of mangroves have disappeared thanks to the encroachment of aquaculture Source: Millennium Ecosystem Assessment (2005a) Some 30% of coral reefs, essential for biodiversity, have been damaged through fishing, pollution or disease. Source: Wilkinson (2004)

4 Green Economy and Resource Efficiency Incentives for Eco Innovation Investment increases net welfare gains from economic activities by doing more and better with less Global market for environmental products and services is projected to double from $1.37 trillion per year to $2.74 trillion by 2020 Increasing demand markets for organic food and beverages expanding on average 10 20% per annum) Economic activity currently consumes more biomass than the Earth produces on a sustainable basis (i.e. the ecological footprint exceeds our planet s resources) Incentive for eco innovation : CLEAR POLICY SIGNAL! Opportunities Source: OECD (2010), The Invention and Transfer of Environmental Technologies Green Economy Report 3. Green Economy Report Initial Findings Modeling Enabling Conditions Agriculture Building Cities Energy Key Messages Finance from Chapters (being reviewed Fisheries& revised) Forest Manufacturing Tourism Transport Waste Water Green Economy: Approach and Focus Agriculture APPROACH Selecting and driving transformation in key sectors critical or highly material for greening the global economy FOCUS On enabling conditions (finance, subsidies, taxes, regulations, and related reforms that achieve GE objective) taxes, regulations Approximately 2.6 billion people rely on agricultural production systems for their livelihood. (FAO 2009) 525 million small farms world wide, 404 million less than two hectares of land (Nagayets 2005), Small farms cultivate 60 percent of arable land (Herren et al. 2010) 10 percent increase in farm yields > 7 percent reduction in poverty in Africa, more than 5 percent in Asia Green farming practices have increased yields, especially on small farms, between 79 and 180 percent. subsidies finance An increase in overall GDP coming from agricultural labor productivity is on average 2.5 times more effective in raising the incomes of the poorest quintile in developing countries than an equivalent increase in GDP coming from non agricultural labor productivity.

5 Fisheries Business as usual is not an option: State of fish stocks Source: Froese and Pauly (2004) Fisheries Investments Reversing harmful subsidies Fiscal policies Strengthening political consensus Example: Fisheries sector Types of subsidies leave $ 8 bio good subsidies : MPA s, fleet retirals, skills training, livelihood devpt Type of subsidies Good Bad Ugly Impact Example Amount (US dollars in 2003) Enhance the conservation of fish stocks over time Funding fisheries management/ Using government spending to operate marine protected areas $ 7.9 bn Lead to overcapacity and excessive catches Fuel subsidies $ 16.2 bn Can either Buyback (or $ 3 bn conserve a decommissioning) fish stock or to fishing vessel to deplete it reduce a fleet size further Source: Sumeila et al (2006) Fisheries Water Distribution of fishing effort around Georges Bank closed areas Aggregated global gap between existing accessible, reliable supply and water withdraws, assuming no efficiency gains Billion m³, 154 basin/ regions Source: Fogarty & Botsford, (2007), Oceanography 20 (3); pp % of the US haddock catch are taken within 5 km of a fishery closed area, off the New England Coast. Enabling Conditions Financial Institutional Economic Infrastructure Information based Increased availability of finance for governments and businesses in key sectors [includes subsidies and tax instruments] Laws and institutions that encourage long term and efficient management and use of resources Laws and norms that encourage the transfer of technologies Improved administrative and technical capacity in government and other organizations Increased funding for key sectors Policy support for key sectors that is clear, predictable and stable Prices that reflect true cost of goods and services Existence of key infrastructure [for those sectors that need it in order to attract further investment] Increased data and analysis about ecological conditions Increased awareness about sustainability challenges Increased information about life cycle costs of goods and services A workforce equipped with the skills needed to take advantage of green opportunities 4. Green Economy Success Stories Improved transparency and accountability Effective enforcement of laws

6 Uganda OA Transformation Uganda OA Transformation Organic Agriculture Agricultural Dependence OA Growth in Uganda 48 68% lower carbon emission Carbon Sequestration Climate Contribution 85% of the population 42% of GDP, 80% of exports earnings US$ 22.8 mil (2007/8) US$ 6.2 mil (2004/5) US$ 3.7 mil (2003/4) OA Exports in Uganda Organic food & drink 97% revenue OECD countries 80% producer in developing countries Business Opportunity Bangladesh Solar PV Bangladesh Solar PV Innovative Business Model Access to Electricity Rural Area Micro lending concept Job creation + Community Grameen Shakti (GS) 70% no access, mostly rural area Solar Home Systems (SHSs) Bangladesh Solar PV Brazil Sustainable Cities Innovative Business Model Urbanization Slum Growth Grameen Shakti (GS) As of ,000 SHSs installed 20 technology centers set up 660 women employed 600 youth trained In coming years Planning to train 5,000 women Instruct 10,000 school childern Aiming to create 100,000 jobs by 2015 Become almost synonymous Solar Home Systems (SHSs)

7 Brazil Sustainable Cities Brazil Sustainable Cities Curitiba, Bus Rapid Transit System, 45% public transport rider ship Sustainable Planning Initiatives Thank you THANK YOU Shutterstock UNEP GREEN ECONOMY INITIATIVE