Green Economy Initiative

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Green Economy Initiative

• United Nations Environment Programme
• Moustapha Kamal Gueye
• Acting Head, Green Economy Advisory Services Unit

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A multidimensional crisis rooted in patterns of
development
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The global context

• Multiple crises More than a financial and
  economic crisis
• Social - 18 to 51 million unemployed over 2007
  levels the number of extremely poor has
  increased by at least 100 million people
  worldwide.
• Fuel - rising prices cost developing economies
  US 400 bn in higher energy bills in 2007.
• Food - prices cost developing countries US 324
  bn in 2007.
• Ecosystems - EUR 50 bn worth of biodiversity is
  being lost each year.
• Climate - current global GHG emissions at 42 Gt
  per annum - 5 times higher than the threshold.

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On a business as usual path

• By 2030 and beyond
• Global energy demand up by 45
• Oil price up to US 180 per barrel
• GHG emissions up 45
• Global average temperature up 6C in the next
  century
• Sustained losses equivalent to 5-10 of global
  GDP as compared to the 3 of GDP loss from the
  current financial crisis
• Poor countries will suffer costs in excess of 10
  of their GDP

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Discounting Natural Capital

• Global GDP more than doubled between 1981 2005.
• But 60 of worlds ecosystems degraded/exploited
  unsustainably (MEA, 2005).

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Distribution of Costs -gt Poor people
Natural capital is critical to wealth creation in
low income countries.
The role of environmental resources in reducing
poverty, fighting hunger, and lowering child
mortality
natural capital is essential to wealth
creation, accounting for a quarter of wealth
creation in the poorest countries, while such a
share is only 2 in the worlds richest
countries. Source World Bank, 2006, Where is
the wealth of nations?
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Our Capital Space and our Economic Compass
GDP Growth

• Natural Capital

• Human Social Capital

• Financial Physical Capital

We cannot manage what we do not measure
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Opportunity Amid Crisis
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The Global Green New Deal

• Revive the world economy, create new and decent
  jobs, and protect the vulnerable
• Reduce carbon dependency, ecosystem degradation,
  and water scarcity - 1 of GDP in green sectors
  over two years
• Eliminate persistent poverty by 2015achieve the
  MDGs
• Seed a process of transformative change by
  rebalancing financial and economic capital, human
  capital and natural capital

From Rethinking the Economic Recovery A
Global Green New Deal, UNEP, Feb 2009
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Green Stimulus
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South Africas Green Stimulus

• South Africa launched a 7.5 bn fiscal stimulus
  for 2009-2011.
• Around 11 or 0.8 billion was allocated to
  environment-related themes.

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Beyond Green StimulusTransition towards a
Green Economy
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Definition of Green Economy

• A Green Economy is characterized by substantially
  increased investments in economic sectors that
  build on and enhance the earths natural capital
  or reduce ecological scarcities and environmental
  risks.
• These investments are driven by or supported by
  national policy reforms and the development of
  international policy and market infrastructure.

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Green Economy Initiative Components
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Fostering a Green Economy in Africa

• We see the green economy as an opportunity to
  respond to the notion that there is a trade-off
  to be made between faster economic growth and
  sustainable development, and the preservation of
  our environment
• President Jacob Zuma, South Africa

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Enhancing natural capital, Expanding wealth
creation

• Approximately 2.6 billion people rely on
  agricultural production systems for their
  livelihood (FAO 2009)

• 10 increase in farm yields -gt 7 reduction in
  poverty in Africa, more than 5 in Asia

• 525 million small farms world wide, 404 million
  less than two hectares of land (Nagayets 2005)
• Small farms cultivate 60 of arable land (Herren
  et al. 2010)

• Green farming practices have increased yields,
  especially on small farms, between 79 and 180.

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.
UNEP GREEN ECONOMY INITIATIVE
UNEP GREEN ECONOMY INITIATIVE
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Ugandas Organic Agriculture Transformation
Organic Agriculture
48-68 lower carbon emission Carbon Sequestration
Organic food drinks 97 of revenues in OECD
countries 80 of producer in developing
countries
A 50 bn global market growing at 10 per annum.
US 22.8 mil (2007/8) US 6.2 mil (2004/5) US
3.7 mil (2003/4)
OA Exports in Uganda
UNEP Green Economy Initiative
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Greening Industrialisation
Source International Energy Agency, and World
Bank PPP data.
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GDP and Environment Performance Index in Africa
The EPI is constructed from the scores of two
policy objectives Environmental Health, and
Ecosystem Vitality.
Source 2010 Environment Performance Index
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The Challenge of Energy

• Limited access to energy is one of the greatest
  challenges to achieve the MDGs in Africa.
• African firms lose 5 of their sales due to
  frequent power outages, a figure that rises to
  20 for informal firms unable to afford backup
  generation.
• Overall, the economic costs of power shortage are
  1 to 2 of GDP (World Bank, 2010).
• Investments in clean energy remain minor in
  Africa, totalling 0.9 billion in 2009 (SEFI,
  2010).

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Green Jobs through Clean Energy

• About 2.3 million jobs in renewable energies in
  comparison to 2 million employed in oil gas
  refining industry in 1999.
• Globally, investing US630 bn in the renewable
  energy sector by 2030 would create 20 million
  additional jobs.

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Harnessing Africas Clean Energy Potential
Source REN21, Figures from Renewable Energy
Potentials 2008
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Enabling Just Transitions
Pricing Instruments
Sustainable Public Procurement
Favoring Green over Brown
Draw lessons

• Incentivize green investments and correct
  negative externalities

Describe major policies

• Create and stimulate markets for green goods and
  services

• Government policies and infrastructure can
  encourage private sector to invest in
  environmentally sustainable ventures

• From enabling conditions identified in sector
  chapters

Capacity Building

• Governments
• Private investors
• businesses

• Enable the enablers" in developing countries

UNEP GREEN ECONOMY INITIATIVE
UNEP GREEN ECONOMY INITIATIVE
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Measuring Progress Green Economy Indicators
A set of indicators capturing different aspects
of a green economic transition

1. Investment, employment, and output in key sectors
   of the green economy
2. Decoupling economic growth from impacts on the
   environment
3. Aggregate indicators of economic progress and
   well being, including poverty alleviation and
   natural capital depreciation

Green Economy
UNEP Green Economy Initiative
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Supporting National InitiativesGreen Economy
Advisory Services
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Current Active Engagement

• 2010 2012 rollout countries
• Africa Regional project in 7 countries - Burkina
  Faso, Egypt, Ghana, Kenya, Rwanda, Senegal, South
  Africa.
• East Asia China, Indonesia, PNG, Philippines,
  Rep. Korea.
• Europe Armenia, Azerbaijan, Moldova, Ukraine.
• Latin America and Caribbean Barbados, Brazil,
  Dominica,
  Mexico regional initiative in the
  Caribbean.
• West Asia Jordan, League of Arab States.

• Deliverables
• Green Economy Scoping Studies
• Green Sector Studies
• Green Jobs
• Enabling policies
• Multistakeholer engagement

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More Information
UNEP Green Economy Website http//www.unep.org/g
reeneconomy/