Green and fair economies

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Green and fair economies

• A review of developed and developing countries'
  policies towards achieving sustainability and
  fairness

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What are we researching?

• Aim
• - To explore and analyse some examples of
  countries that have attempted to make their
  economies green and fair
• Definition
• - A green and fair economy is a country which
  through its policies and longer-term plans is
  working towards achieving greater environmental
  sustainability alongside reducing inequalities in
  the distribution of resources, both material and
  natural.

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Reporting to Tearfund

• - A UK Christian relief and development agency
  which works in over 50 countries
• - Investigating the causes of the following
  problem statement
• Our planets natural resources are finite.
  Over-consumption is relentless and already at
  dangerous levels. This jeopardises the lives and
  well-being of current and future generations,
  including the worlds poorest people.

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Structure and choice of countries

• - Developed world Sweden, Iceland, Italy and the
  United Kingdom
• focus on ecological innovations and policies and
  on tackling relative poverty
• - Developing countries Bangladesh, Nepal and
  Mongolia
• focus on projects aimed at improving the
  livelihoods of hundreds of thousands through
  improving living standards

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Sweden

• Key facts
• Low population density
• Significant natural resource endowments
• High living standards (GDP 347.3 billion)

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Sweden is a leading green and fair economy

• Why?
• Combination of societal attitudes and strong
  government led effort.
• Swedish government has undertaken an active role
  at both a national a local level.

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• Examples of government led initiatives include
• (1) Local investment programme (LIP) that
  involved investing 6.2 Bn SEK in 1,814
  environmental programmes across 161
  municipalities from 1998-2008.
• (2) A climate investment programme (from 2003)
  providing 900 projects with 1.8 Bn SEK
• These initiatives have included everything from
  waste management to sustainable living projects.

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• Achievements
• Significant reductions in greenhouse gas
  emissions
• (1) CO2 emissions have fallen by 40 since 1970
• (2) S02 emissions per unit GDP is amongst the
  lowest in OECD countries .
• (3) Reductions in hazardous air pollutants.

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• Relevant policies
• (1) Regulations on fuel quality and a
  case-by-case licensing system for stationary
  sources of air pollution
• (2) C02 tax, a sulphur tax on fuel, a NO2
  charge/refund system.

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High proportion of usage of renewable energies in
Sweden with levels approaching 50.

• Relevant policies
• (1)Initiatives to boost energy efficiency in
  industry power-intensive industries being
  granted tax relief in exchange for taking steps
  to reduce energy use.
• (2) Law on energy declarations

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• Future prospects for sustainable energy?
• Markbygden wind farm involving 1,101 wind
  turbines located over 450 km
• It has potential to produce 8 of Swedens total
  energy demands.

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Leading recycler

• Only 1 of waste in Sweden ends up as Landfill
  vs. 38 for other European countries.
• Sweden actually imports waste from other European
  countries for its waste to energy program.
• In turn, Swedens waste to energy program
  generates about 20 of the countrys district
  heating and electricity for a quarter-million
  Swedish homes.

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Relevant policies

• (1) Waste collection fees based on weight as
  opposed to flat fee pricing policy
• ( effectiveness of this has been questionable)
• (2) Strong provision of recycling facilities

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Welfare policies strong welfare state

• Sweden's gini coefficient of 0.259 distinguishes
  it as one of the world leaders in establishing
  equality.
• But, income inequality has increased recently
  from the 1990s tax on capital became flat and in
  the mid-2000s the inheritance tax, and further
  wealth and property taxes were abolished.

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Community specific project Hammarby Sjostad

• Hammarby Sjostad is a district in Sweden that
  has been developed as a sustainable
  neighbourhood.

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• Key features
• (1) Aims for residents to produce halve typical
  energy consumption and water consumption.
• (2) for the total energy consumption of the
  30,000 people living and working in the district
  to be from renewable sources i.e. use of solar
  panels.
• (3) Biodegradable waste is composted nearby and
  recycling facilities implemented in each
  apartment block.

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• This project is equally an example of a project
  that benefited from government subsidies SEK
  200 million of the funding for Hammarby Sjostad
  came from the government.

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• Outlook for Swedens future prospects is
  positive.
• (1) Post-financial crisis Sweden remains in a
  much stronger position than many other European
  countries with its relatively low public debt
  levels and the flexibility of having its own
  currency.
• (2) The government appears to remain committed to
  the Green economy.
• i.e. it has set a zero net greenhouse emissions
  target from 2050.

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Iceland

• Key Facts
• - Small population
• - Significant natural resource endowments
• - High GDP per capita 25,000
• Key industries fishing, manufacturing and
  tourism.

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As a Green and fair economy, Iceland has a lot of
potential

• It is an equal society with strong incentives
  from its tourism industry to become a green one
  too.
• Following the banking collapse in 2008 and
  subsequent IMF bailout , the economy appears to
  be recovering with 2012 seeing rising output
  growth and a decline in unemployment.

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• The government equally has ambitious plans for
  future green growth and extensive green policies.
• However, there remains the risks of Iceland
  seeking to expand its manufacturing sector at the
  expense of its green economy.
• Equally, it is difficult to find large scale
  evidence of concrete projects for the future.

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Achievements Successfully exploited sustainable
sources of energy.

• Electricity generated in Iceland is almost
  completely generated by renewable energies with
  73 coming from hydroelectric energy and 22.4
  from geothermal sources.
• Also, involvement in promoting sustainable
  energies elsewhere i.e. involved in the Global
  Geothermal Development Plan, a World Bank
  initiative designed to provide finance and
  knowhow for geothermal assessments and tests in
  13 East African countries.

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• Sustainable fishing
• Achieved through strong quota policies. Equally,
  the government exercise temporary, seasonal and
  permanent restrictions on fishing in certain
  areas.
• Fair society through redistributive state
• Pre-financial crisis Gini coefficient at about
  0.25 placing Iceland high up in terms of equal
  societies.

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• A very pro-active approach in reaching gender
  equality .
• Emphasis on promoting and establishing gender
  equality from curbing violence against women
  to promoting the position of women in the
  education system and in the workplace.

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• Looking to the future
• Issues
• There has been an increase in greenhouse gas
  emissions over the past ten years as a result of
  expansion in Industry.
• gt risk of Iceland compromising its green
  policies to attract investment in industry.
• However, plans for an ecological tax reform which
  would place the burden on emitters are in the
  pipeline.

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• But, overall the government does seem committed
  to a green and fair economy.
• The government seem to have endless proposals and
  initiatives for green and fair development.
• For instance, the Icelandic government intends to
  reimburse ship owners up to 20 for changing to
  greener vessels.

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Italy

• Reductions in emissions of local air pollutants
  were among the largest in any OECD country, but
  more than half the 30 most polluted cities in
  Europe are in Italy
• Greenhouse gas emissions were 6.2 below 1990
  levels in 2010, compared to Kyoto target of a
  6.5 reduction in 2008-12
• GDP growth -0.9 (last quarter of 2012)
• Unemployment 9.8
• Gini coefficient 0.319 (2011)

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2. 1. Eco-enterprise culture in Italy

• In Italy, one enterprise out of four - that is
  the 23,6 - is switching to green economy to face
  crisis.
• 38,2 of job recruitment has been in the green
  sectors of economy.
• 37,9 of enterprises introduced green innovation
  in products or services in 2011.
• The same trend is shown in export where 37,4 of
  green enterprises are present in foreign
  markets,while traditional enterprises not
  involved in eco policies are only 22,2.

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2.2. Italys clean technology the green-lights
largest PV solar plant in Europe

• SunEdison's 72-megawatt photovoltaic solar power
  plant finds a home in Italy's Veneto region,
  Rovigo.
• In its first year of operation, the system is
  expected to generate enough energy to power
  approximately 16,500 homes and prevent the
  emission of 40,000 tons of CO2, which would
  equate to the removal of 8,000 cars from the
  road.

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2.3 Other national and local policies
2.3.1. Raising awareness

• Ongoing in Piedmont, for example, is a
  large-scale awareness-raising campaign for the
  reduction of CO2 emissions.
• The 2007 National Forum for Education for
  Environment and Sustainability, organised by the
  MATTM and the Piedmont region, assisted in the
  development and approval by the State-Regions
  Conference of a new framework for the INFEA and
  new financing of EUR 10m for 2007-09.

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2.3.2. Sector-specific actions

• The Ministry of the Environment has promoted an
  initiative regarding the mobility sector and to
  which 8.75 million have been allocated.
• The vehicles can be selected from a list of 3,150
  models purchasable at a discount 2,887 are
  bicycles, normal or with power-assisted pedals.
  Moreover, this year the amount of the incentive
  has increased (from 250 to 700 which can cover
  30 of the total costs).

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2.3.4. Training programmes to prepare the
workforce for the transition to the green economy

• - Of particular interest is an agreement between
  SolarExpo (a trade fair on renewable energy held
  in Verona and where exhibiting firms have
  increased tenfold in the space of four years,
  reaching 1000 firms and 31 countries represented)
  and Adecco.

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3. Cross-over of sustainability and equality the
relevance of green policies towards a fair
economy

• - Government deficit 4.6 GDP 2010
• - Inequality in income distribution remains
  slightly higher than the OECD average.
  At-risk-of-poverty rate is 18.2, higher than the
  EU27 average of 16.4 in 2010.

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United Kingdom
1. Overview

• Over a third of the UK economic growth in
  2011-2012 is likely to have come from green
  business and the environment
• Major green trading partners include Brazil,
  India, USA, Germany, Japan and China
• GDP growth 0.3
• Unemployment rate 7.9
• National debt 82 GDP
• Gini coefficient 0.3

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2. National policies

• 2.1. The Climate Change Act 2008
• On 26 November 2008, the Climate Acts puts a
  framework to achieve a mandatory 80 cut in the
  UKs carbon emission by 2050 compared to the 1990
  levels, with an intermediate target of 34 by
  2020.

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2.2. Renewables Obligation

• On April 2002, the obligation requires all
  electricity suppliers to supply a set of portion
  of their electricity from renewable sources. The
  target was 3 in 2002-2003, 10.4 in 2010-2012
  and 15.4 by 2015-2016.
• For each eligible megawatt hour of renewable
  energy generated, a tradable certificate called a
  renewable obligation certificate (ROC) is issued
  by OFTEM

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2.3. The CRC Energy Efficiency Scheme

• This is a mandatory cap and trade scheme
  announced in May 2007 that apply to large non
  energy-intensive organisations, including hotel
  chains, supermarkets, banks, central government
  and large local authorities.
• It is anticipated that the scheme will have cut
  carbon emissions by 1.2 million tonnes of carbon
  per year by 2020.

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2.4. The Green Deal

• The Green Deal is a policy to encourage energy
  efficiency improvements in the UKs building
  stock. It will be financed through loans attached
  to the energy bills of the improved properties.

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3. Challenges
3.1. Creating more green jobs
4. UKs opportunities and obstacles towards a
fair economy

• From the Chancellor of Exchequer George Osbornes
  annual budget, income tax for the top earners has
  reduced by 5, making direct tax less
  progressive. At the same time, tax allowance will
  raise to 9,000 next year - the amount incomes up
  to which will not be taxed. This indicates the
  top and bottom income earners will be better off
  - but the middle income earners will be worse
  off, since they might be squeezed into a higher
  tax bracket.

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5. Engagement of local authorities

• A report from the Nottinghamshire County Council
  stated that We have a 1million invest to save
  energy efficiency scheme, supported by
  0.5million of Carbon Trust funding, currently
  saving well over 1,000 tonnes of CO2 per annum
  from our schools and other council buildings,
  through the installation of measures such as
  improved insulation, low energy lighting and
  better heating controls.

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Bangladesh

• Facts and figures
• - 8th most densely populated country in world
• - 45 of workforce employed in agriculture
• - 40 of labour force underemployed
• - 59 of pop. without access to electricity
• - Poverty headcount ratio of 43
• - Expected growth rates of around 6 expected for
  next 3 years (IMF)
• - MDGs can 'probably' or 'potentially' be
  achieved by 2015 (IMF)

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Case study Electrifying off-grid rural areas
using renewable energy

• Between 2002 and 2012
• A joint effort of the World Bank, local
  communities and the govt. of Bangladesh
• Grants and credit facilities given to households
  to buy photovoltaic systems down payments made
  by households
• Results
• 1.7m solar-powered systems installed
• Over 4m people gained access to electricity

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Nepal

• Facts and figures
• Poor quality of institutions, including political
  instability and poor law and order
• Highly susceptible to climate change risks and
  ranks 11th in the world in terms of vulnerability
  to earthquakes
• Has one of the largest untapped hydropower
  resources in the world
• Low income country
• Growth rates about 4.5 between 2009 and 2012

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• Achievements
• Rural Energy Development Programme
• Micro-hydro plants installed in poorest parts of
  Nepal, installation of solar home systems,
  dissemination of cleaner cooking stoves
• Alternative Energy Promotion Centre (AEPC)
• Improving the efficiency of water mills,
  subsidising solar cookers and solar dryers
• Biogas support programme
• More than 140,000 biogas installations built
  (1992-2005), creation of 60 companies and 11000
  jobs in the biogas sector

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Mongolia

• Facts and figures
• Large mineral deposits
• Average growth rates 8 over past 4 years
• expected double-digit rates between 2013 to 2017
• Decrease in poverty from 40 to 30 between 2010
  and 2011 and downward trend throughout last
  decade
• Substantial progress towards MDGs, but regional
  disparities
• A lower middle income country

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National and regional policies

• Green loans to vulnerable groups
• Introduction of green loans, especially targeted
  to vulnerable groups, financing procurement of
  efficient cooking stoves, solar heating systems,
  housing insulation
• Forest management training (FAO)
• Helping herders reverse deforestation and combat
  illegal logging and arson through training

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Opportunities and challenges

• Bangladesh - benefits from commitment of
  government in both 'green' and 'fair' policies
• Nepal - impressive achievements despite poor
  institutions needs more govt commitment
• Mongolia - needs to manage revenues effectively
  to avoid Dutch disease needs more govt. and
  local govt. involvement
• Bangladesh, Nepal, Mongolia - vulnerable to
  natural disasters need to immediately tackle
  issues of water management, disaster preparedness

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Opportunities and challenges cont.

• Sweden, Iceland - can be role models for other
  countries to follow in terms of greenness and
  fairness, have successfully used a multi-faceted
  approach to green and fair growth
• Italy - example of how green and fair policies as
  an instrument for recovery, eco-enterprise has
  the potential to create green jobs
• UK - an established green and fair economy, but
  current budget overlooked green and fair
  considerations

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Conclusion

• Various types of policies and levels of greenness
  and fairness examined
• All the countries have a long way to go in order
  to be fully green and fair
• Difficult to present an all-encompassing view of
  how a green and fair economy should look like
  political, social and economic context should
  guide policy