Green Economy around the World; Advancement & Challenges in Bangladesh


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Green Economy around the World; Advancement & Challenges in Bangladesh

  1. 1. Submitted to: Dr. Mahmuda Akter Professor Department of Accounting & Information Systems, University of Dhaka Submitted by: A. B. M. Abdullah BBA 16th Batch, Section-A, Roll-16010 Department of Accounting & Information Systems, University of Dhaka Date: 20/02/2014
  2. 2. LETTER OF TRANSMITTAL Department of Accounting & Information Systems University of Dhaka February 20, 2014 Dr. Mahmuda Akter Professor, Dept. of Accounting & Information Systems, University of Dhaka Subject: Submission of project paper Dear Madam, I am delighted to submit my project paper on ‘Green Economy around the World: Prospects in Bangladesh’. This paper has been prepared according to your authorization. Different research papers, articles, journals, reports on green economy have been taken as the fundamental sources of information. I am thankful to you for permitting me to prepare project paper on this alternative economic system which has enriched my knowledge in different areas. Sincerely Yours, A. B. M. Abdullah i
  3. 3. CHART OF CONTENTS Contents Page number Acknowledgement 01 Executive Summary 01 Introduction 02 Methodology & Limitation 03 Literature Review 03 CHAPTER 1: Introduction to Green Economy 06 - 15 1.1 Green economy: definition & meaning 06 1.2 Traditional economy versus green economy 07 1.3 Evolution of green economy 07 1.4 Principles of green economy 09 1.5 The green economy: from theory to practice 11 1.6 Green economy and poverty reduction 12 1.7 Criticism of green economy 15 CHAPTER 2: Components of Green Economy 16 - 28 2.1 Green banking 16 2.2 Green investment 17 2.3 Green agriculture 19 2.4 Green transportation 20 2.5 Green employment or green jobs 21 2.6 Green fuel/renewable energy 23 2.7 Waste management 25 2.8 Water management 27 2.9 Land management 27 2.10 Forestry 28 CHAPTER 3: Advancement of Green Economy Around the World 29 - 45 3.1 Sector wise advancement of green economy in different countries 29 3.2 Successful green economic initiatives in different countries 37 ii
  4. 4. Contents Page number 3.3 Environmental Performance Index 2014 and top performer countries CHAPTER 4: Green Economy in Bangladesh 43 46 - 58 4.1 Probable benefits that Bangladesh can get from green economy 46 4.2 Important initiatives towards green economy in Bangladesh 47 4.3 Sector-wise advancement of green economy in Bangladesh 48 4.4 Bangladesh in Environmental Performance Index (EPI) 2014 57 CHAPTER 5: Challenges & Recommendations 59 - 69 5.1 Analysis of the prospects of green economy in Bangladesh 59 5.2 Challenges towards green economy in Bangladesh & recommendations 60 Conclusion 70 Bibliography 71 iii
  5. 5. Acknowledgement Firstly, I offer my thanks to the Almighty Allah for giving me patience and capability of collecting information. I am very grateful to my supervisor Professor Dr. Mahmuda Akter whose encouragement, guidance and support from the initial level enabled me to complete this project. During the preparation of this project paper, I have collected information from different articles, reports, research papers, newspapers, journals and websites. I would like to extend my gratitude to the authors, researchers, editors, organizations and journalists who prepared those materials. Executive Summary The economic system which focuses on both economic growth and environmental sustainability is known as green economy. This economy requires environment-friendly practices in the core economic sectors like banking, investment, agriculture, transportation, employment creation, energy, waste management, water management, land management, forestry etc. This economy is believed to have many positive outcomes including increased productivity, increased income, reduced poverty, social equity, environmental protection, reduced pollution, improved public health and social well-being. The United Nations Conference on Environment and Development (UNCED), well-known as the ‘Earth Summit’ held in June 1992 in Rio de Janeiro, Brazil, was the first formal international initiatives towards environment-friendly economy or green economy. Many countries have been working for implementing green economy since 1992 and have achieved success largely. But none of these countries have been able to implement this economic system completely. Bangladesh, one of the worst sufferers of climate change, is also experiencing slow progress towards green economy. In fact, green economy has good prospects in this country. But the country faces some social, economic, environmental and legal challenges in the way of greening its economy. This paper has identified those challenges and provided recommendations to overcome them. 1
  6. 6. Introduction Background: The whole world is running after economic growth and development. This blind running towards economic growth has damaged the earth and its environment. At the same time, human existence has become endangered. As a result, the concept of an alternative economic system called ‘green economy’ has come into being. This concept of economy covers a broad area of economic, social and environmental development. Green economic concept is gaining much popularity all over the world. This concept also has national level applications in many countries of the world. In very short time, the green economic initiatives and applications in different countries have presented many positive economic, environmental and social outcomes. Green economy is not sole applicable in the economically developed countries. Rather it has much potential in the developing countries like Bangladesh. In the developing countries, this new economic system can mitigate economic crisis and environmental degradation. Green economy, its areas and applications have been discussed on national and international context. Objectives: The objectives of this project paper are to: Explain the concept, components and areas of green economy  Identify the potential benefits associated with this economy  Discuss the global advancement of this economy  Determine the applications and advancement of green economic initiatives in Bangladesh  Identify the challenges of green economy in Bangladesh  Provide recommendations to overcome the identified challenges 2
  7. 7. Methodology & Limitation For preparing this project paper, all the information has been collected from the secondary sources. Research papers, articles, journals, websites of the related areas were used. Information has also been collected from the reports of the international organizations like UNEP, UNCCD, ILO, World Bank etc. Information from all these sources has been analyzed with much effort for preparing this paper. The main limitation of this paper is that it contains no information from the primary data sources. Moreover, the paper has been prepared with my limited knowledge and within a very limited time. Literature Review The negative socio-economic and environmental impacts of traditional fossil-fuel based brown economy have been observed all over the world. These observations motived people to think of an alternative economic system which is called green economy or environmentfriendly economy. This thinking has been reflected in many literatures. The United Nations Environment Programme (UNEP) noted in 2008: “There is growing recognition that humanity faces a severe environmental emergency. Modern economies have been built on an unsustainable foundation. Activities ranging from agriculture and mining to manufacturing, services, and transportation rely on fossil fuels, generate copious amounts of pollution and waste, and undermine critical ecosystems, eco-services, and life support.” It is found in the report of Collaborative Economics, Inc., (2010) that since the economy shifts away from its dependence on carbon‐based energy toward cleaner alternatives and improvements in efficiency, new market demand is created for products and services that conserve resources. This transformation of the economy yields increased environmental and economic flexibility which translates into improved competitiveness for a company as well as an economy. In Green Economy Report 2011, United Nations Environment Programme (UNEP) mentioned, “A major challenge is reconciling the competing economic development aspirations of rich and poor countries in a world economy that is facing increasing climate change, energy insecurity and ecological scarcity. A green economy can meet this 3
  8. 8. challenge by offering a development path that reduces carbon dependency, promotes resource and energy efficiency and lessens environmental degradation. As economic growth and investments become less dependent on liquidating environmental assets and sacrificing environmental quality, both rich and poor countries can attain more sustainable economic development.” Achim Steiner (2010), Executive Director of United Nations Environment Programme (UNEP) said, “The Green Economy is emerging, in part driven by the financial and economic crisis, and in part because of a growing realization that the blunt and limited markets of the past are unlikely to sustain the current global population of six billion people, rising to nine billion by 2050. Managing environmental risks such as climate change and the scarcity of natural resources will increasingly define a company’s business and political life in the 21st century.” In an effort to define the term green economy, ECO Canada (2010) tried to establish three criteria namely technical, economic and development. Technical Perspective - defines the green economy through the application of quantitative, analytical criteria that measure exactly what it is about a product, process or service that is ‘green’ and to what extent. Economic Perspective - relates the characteristics of an activity to categorize its economic classification system of sectors, industries, and occupations. Economic criteria might assess whether products or services contribute to decreased greenhouse gas emissions, or include sustainable resources in manufacturing processes. Lastly, development process - identifies where in the development cycle a green job is situated. The development process includes the phases of development of a product or service, from the research phase through to design, delivery, implementation, ongoing use and maintenance. In his research paper, Md. Mustafizur Rahman said, “Green Economy is one whose growth in income and employment is driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services. These investments need to be catalyzed and supported by targeted public expenditure, policy reforms and regulation changes.” Unnayan Onneshan (2012), in their policy said, “The green economy has ambivalent implications for Bangladesh. Some sectors could run well under green economy framework 4
  9. 9. such as forestry, tourism, transportation, water resources management etc. Conversely, cautious approach is needed in implementing green economy principle in agriculture sector since production may reduce initially in extensive farming which may create a temporary food crisis for a land deficit country like Bangladesh. It does not mean that we should continue environmentally destructive mechanized agriculture forever, rather we should start green agriculture now, may be in a limited scale that can be replicated as wider scale in future. Equally, we have to be careful about equity and justice issue. The benefits arisen from green economy should be distributed following the principle of equity and justice.” Dr. Md. Mizanur Rahman, a biodiversity specialist, identified eleven green solutions for resolving economic and environmental crisis in Bangladesh. These eleven green solutions are1) Green energy 2) Green job 3) Reduce, reuse and rethink 4) Go green 5) Green investment 6) Green waste management 7) Green agriculture 8) Green transportation 9) Pure food security 10) Biodiversity conservation and 11) Ecotourism In his research paper, Md. Mahadi Hasan (2012) mentioned, “Climate change is a serious global threat, and it demands an urgent global response. And the emerging concept of green economy could mitigate the multi-crises scenario in ecological balance, social justice, environmental vulnerability, and economic pitfalls. Although the concept is highly embarked by the developed nations, still opportunities exist for third world countries like Bangladesh.” 5
  10. 10. CHAPTER I Introduction to Green Economy Economy and environment are closely related in achieving sustainable development. But we are so eager to achieve economic growth that we pay less attention to the environment. As a result, the gap between economy and environment is increasing continuously. For achieving high economic growth, natural resources are being used at random around the world. This excessive use of natural resources is increasing the emission of green house gas in the atmosphere. The environment is adversely affected by this green house gas. Thus, the world is becoming polluted and unsafe for human existence. This is high time we thought differently. We should think of an alternative economic system called Green Economy for fostering economic growth and at the same time protecting our environment from degradation. 1.1 Green economy: definition & meaning The tern ‘Green Economy’ means environment-friendly economy. Here, the word ‘green’ indicates the environment. This economy maintains close relationship with the environment. All the economic decisions taken in green economy are favorable to the environment. The main concept of green economy is to enhance economic growth and development without degrading the natural environment. This economy pays more attention to the nature and eco-system. According to the United Nations Environment Programme (UNEP), a green economy is one that results in improved human wellbeing and social equity while significantly reducing environmental risks and ecological scarcities. In a simple way, we can say that green economy can be thought of as one which is low carbon, resource efficient and socially inclusive. A green economy puts emphasis on economic growth, creating employments, reducing carbon emission, protecting pollution and accelerating sustainable development. At the same time, green economy encourages the minimum utilization of natural resources and the conservation of ecosystem services. 6
  11. 11. 1.2 Traditional economy versus green economy Traditionally economy is a system of production, distribution and consumption. It deals with the production, distribution and consumption of goods and services of a particular country or geographical region. This economy broadly discusses the land, labor, capita, entrepreneurship, manufacturing, trade, distribution, savings, investment, consumption of that area. This economy contains a lot of rationally argued propositions. The concepts of this economy are well grounded in the academy. Like the traditional economy, the green economy is also based on production, distribution and consumption of goods and services but it is slightly different from the traditional economy. Green economy differs from the traditional economy in terms of final outputs and ways of operations. The traditional economy primarily focuses on achieving economic growth with or without any consideration to environment. On the other hand, the green economy focuses on growth, social equity and human wellbeing with a great consideration to reducing environmental risks and ecological scarcities. This economy broadly discusses the renewable energy, green investment, green transport, green agriculture, green employments, improved waste management, improved water and land management, combating climate changes and forestry. Green economy is a thoughtful part of economy. It exhibits a deep revere for manure and environment. It is actually a system of ideas and principles and it do not contain any rationally argued propositions. The concepts of this economy have much impact on the development strategies and policies. But they are less well grounded in the academy. 1.3 Evolution of green economy The United Nations Conference on Environment and Development (UNCED) held in June 1992 in Rio de Janeiro, Brazil. This conference is known as ‘Earth Summit’ which adopted fundamental principles and a programme of action called ‘Agenda 21’ for promoting sustainable development. In 1997, the United Nations General Assembly reviewed and ratified the principles for further implementation. This assembly also decided to convene the World Summit on Sustainable Development (WSSD) in 2002 in Johannesburg, South 7
  12. 12. Africa for full implementation of the earlier principles. Having received support form the WSSD, the Commission on Sustainable Development (CSD) at its 11th session (held in New York in 2003) decided to formulate a multi-year programme of work. In response to the financial and economic crisis, United Nations Environmental Programme (UNEP) called for a ‘Global Green New Deal’. The main objectives of this deal were to revive global economy, boost employment, fight against climate change and fight against environmental degradation. The UNEP invited the 20 most advanced economies to engage in a ‘Global Green New Deal’ by investing at least 1% of their GDP in promoting green economic sectors. UNEP recommended these economies to emphasize on improving energy efficiency, sustainable transport and stimulating energy sources. The importance of inclusive growth with employment creation, decent work and livelihood in the context of green economy were discussed throughout in several consultative meetings of UNCSD in 2011. The promotion of green economy requires high subsidies from the government and technological aids from the developed countries. Seven G20 countries (China, France, Germany, the USA, Mexico, Republic of Korea and South Africa) have announced packages for stimulating green economy in 2009. They planned to spend 10% to 20% of the packages in different sectors like railway infrastructure, sustainable transport, climate protection, energy efficient building, renewable energies and waste management. UNEP encourages these countries to increase the level of green investments in the packages. In response, China and South Korea increased their green investment from 34% to 78%. Thus, green economy is expanding in many developed countries but the developing and least developed countries are not far from this. In fact, green economy is expanding in many developing and least developed countries also, for example Cuba, Ecuador, Barbados, Tanzania, Uganda, Tunisia, Kenya, India, Nepal etc. The level of implementation is very high in developed countries because they have more financial and technical power. But the developing and least developed countries face many obstacles in greening their economic sectors due to financial and technical inability. So, the advancement of green economy is very slow. 8
  13. 13. 1.4 Principles of green economy There is a lot of discussions on the principles of green economy. Researchers and scholars have different opinions regarding the guiding principles of this economy. Combining all these discussions and opinions, the Earthsummit 2012 presented 15 principles for green economy. Those principles are as follows: 1.4.1 Equitable distribution of wealth: The wealth of the world should equitably be distributed among nations to reduce the disparity among rich and poor. Social and economic justice should be ensured. The natural resources should be used in such a way that wildlife gets sufficient space. 1.4.2 Economic equity and fairness: The countries of the world should bear common but different responsibilities. The developed countries should transfer finance and technology to the least developed countries so that the gap between them is minimized. At the same time both of them will be able to ensure environmental sustainability. 1.4.3 Intergenerational equity: Environmental resources and ecosystem should be managed and preserved in such a way that the value of the environmental assets is increased for the future generations. 1.4.4 Precautionary approach: Science should be utilized to increase the social and environmental outcomes. The environmental risks of using science should be identified. Any bad impact of science on the environment should not be neglected. 1.4.5 The right to development: For achieving sustainable development, both the human development and the environmental development are necessary. So, individuals and societies should concentrate on both of these two types of developments. 1.4.6 Internalization of externalities: Building the social and environmental value should be the main target of the policy. The market prices should reflect the social and environmental costs and benefits. The polluters must bear the cost of pollution. Taxing systems and regulatory activities should make good things cheap and bad things very expensive. 9
  14. 14. 1.4.7 International cooperation: The environmental standards in one nation should be set after construing their impacts on development potential of the other nation. Unfair trade restriction should be removed. It should be ensured that trade supports sustainable resource use, environmental protection progressive labor standards. 1.4.8 International liability: Actions implemented in a country may have impacts on the other countries too. In this case, international cooperation is required. At the same time, there should be international laws to provide solutions in such cases. 1.4.9 Information, participation and accountability: All citizens should have access to the information relating to the environment. They should be given chance to participate in decision making regarding the environmental issues. To handle the environmental issues with the participation of the concerned citizens, all the institutes (both national and international) should be democratic and accountable. 1.4.10 Sustainable consumption and production: Ensure sustainable production and consumption with sustainable and equitable resource use. Reduce unsustainable patterns of production. Reduce, reuse and recycle the materials used because the resources of the earth are limited. 1.4.11 Strategic cooperation and integrated planning to deliver sustainable, green economy and poverty alleviation: An integrated approach must be adopted at all levels for achieving socio-economic sustainability and environmental sustainability. Strategic planning should be made with the participation of civil society, stakeholders and concerned governmental departments. 1.4.12 Just transition: In transition to the green economy, countries must incur costs. Some wealthy countries will be able to bear the costs easily while the developing and least developed countries may not be able to bear those costs. In such a situation, the vulnerable countries should get financial and technical supports from the wealthy countries. Again the citizens of the developing countries must have access to new skills and jobs. 1.4.13 Redefined well-being: GDP is an inadequate tool for measuring social well-being and environmental integrity. Many socially and environmentally damaging activities increase GDP, for example – fossil fuel exploitation and financial speculations. 10
  15. 15. Environmental health, quality of life and human well-being should be considered in determining economic well-being. 1.4.14 Gender equality: Gender equity and equality is to be ensured in transition to the green economy and in achievement of sustainable development. Women have many important roles to play in environmental management and development. They should be given the chance of skill development in this regard and their actions must be rewarded accordingly. 1.4.15 Safeguard biodiversity and prevent pollution of any part of the environment: Protect and restore biodiversity and natural habitats because they are integral to development and human well-being. Develop a system that protects the ecosystem from damages. 1.5 The green economy: From theory to practice The concept of green economy is not clear to many. As a result, there are also debates on its operational framework, how it would be implemented in developing and least developed countries, whether it would be implemented for shot term or long term. In spite of all these debates the main inspirations regarding the implementation of green economy are the externalities greenhouse gas emission, climate change, financial crisis etc) of tradition fissile fuel based brown economy. The United Nations Environment Programme (UNEP) also have taken position in favor of green economy. Until now, the framework of green economy is stands on technological platforms and economic opportunities associated with the new technologies. Much less has been discussed regarding the potential negative social and environmental consequences of implementing green economy. Again, much less has been discussed regarding the need to reduce demand and overconsumption by the wealthy nations. Therefore, the researchers define the ‘green economy’ as a repacking of consumption oriented neo-liberal economics. There is no doubt that green economy aims at improving the environmental health of the economy but question arises whether the developing countries can comply with this approach or not. Developing countries may face many obstacles in implementing the 11
  16. 16. concept of green economy because they are to give priority on poverty reduction, rural development, food and water security, energy access, transportation needs as mandatory. As a result, they can not give much importance on environmental issues. It is a burning question that how these countries can meet all the mandatory requirements while maintaining environmental integrity. The answer of this burning question has been given by Karl Burkart In the definition of green economy Karl Burkart identified six priority areas on which the developing and least developed countries should emphasize. These areas are – renewable energy, green building, clean transportation, water management, waste management and land management. Green activities should be implemented in these six areas with the help of low carbon technologies. In this case, the developing countries may take financial and technical support from developed countries. 1.6 Green economy and poverty reduction The traditional economic system is, in many cases, responsible for growing economic uncertainty, social inequality and widespread poverty. The millennium development goal of reducing extreme poverty is very far for reach for many countries. The recent financial, food and economic crisis in many countries of the world have made it very hard to fight against poverty. All these crises lead to the depletion of natural resources but the poor people depend mostly on the natural resources for livelihood, business and wealth creation. As a result, the reduction of natural resources leads to the increase in poverty. The share of poor people in the global GDP is very small. Again, this small portion of share is reduced with the decrease of natural resources. The Champagne- Glass Distribution (Figure: 1.1) shows that the bottom 40% of the population of the world owns less the 5% of the global wealth. This is the segment of the people who live on small farms, coastal areas, around forest and depend mainly on natural resources. The reduction or depletion of natural resources not only creates poverty but also creates poverty trap which leads to further degradation of the situation. 12
  17. 17. Figure-1.1: Champagne-Glass Distribution Source: distribution-of-wealth/ In this condition, green economic system can play an important role in reducing poverty. It is shown in different countries that the efforts for greening the economy have many positive results in poverty eradication. These efforts improve the GDP growth, increase natural capital, create more job opportunities and enhance the standard of living. UNEP research suggests that if 2% of global GDP is invested in green economic sectors, the green economic sectors will produce higher global GDP compared to the traditional economic sectors and this higher GDP will be produced within only10 years. Green agriculture presents many sustainable farming techniques, for example integrated pest management, integrated nutrient management, low-tillage farming, agro-forestry, aquaculture, water harvesting, livestock integration, nitrogen fixing crops etc. These techniques can increase the level of production. Green agriculture also links the marginalized farmers with different supply chains which increase their income. Thus, the level of poverty is reduced. Researches show that implication of green techniques in agriculture increase the production from 59 to 179 percent. Again, it is also shown in the 13
  18. 18. researches that for every 10% increase in agricultural production, there have been a 7% reduction in poverty in Africa and more than 5% reduction in poverty in Asia. Lack of safe drinking water and sanitation facility has a great negative impact on the socioeconomic condition of the poor people. This lacking is the main cause of sickness diseases of the poor people. Sickness and diseases reduce their working hours and at the same time increase medical costs. As a result, they face economic hardships. Green economy emphasizes on proper water management and waste management which ensure the availability of safe water and good sanitation systems. Thus the condition of health of the poor people is improved. They can work more and earn more to get rid of poverty. Traditional energy sources (oil, gas an coal) are not affordable to everyone and the ways of distribution of these energy are not equitable. At the same time, excessive use of these energies can lead to environmental degradation. So, green economy focuses on using renewable energy sources (sunlight, wind, rain, tides, waves, geothermal heat etc). The use of renewable energy will prevent environment pollution, improve human health and increase economic activities in the low income areas especially in the rural areas. As a result, the level of poverty will be reduced. The initial investment in renewable energy may be high but different models have been developed to cover the costs. Green economy also aims at increasing ecotourism. The term ecotourism means that travelling should not have negative impact on the natural environment and it should improve the well-being of the local people. Tourism is mainly human- resource intensive. Ecotourism will increase the employment opportunities of the people and thus will contribute to reduce poverty. Natural calamities (floods, cyclones, drought, tidal wave etc) occurring around the world have a great negative impact on the life and property. These calamities damage personal property, crops and socio-economic infrastructure. As a result, economic activities are hampered and poverty is increased in the affected areas. The natural calamities are the results of air pollution, deforestation and climate change. Green economy reduces air pollution through green transport. This economy also emphasizes on creating and preserving forest lands. In this way, green economy tries to combat climate change and reduce natural calamities. All these measures will reduce the occurrence of natural 14
  19. 19. calamities and destruction of wealth. So, fighting against poverty with a view to achieving economic solvency will become possible. Thus, green economy can play a significant role in reducing poverty and inequity around the world. But the success of green economy in poverty reduction depends mostly on right policy formulation and proper implementation. Right policies are to be formulated as per the existing socio-economic conditions. However, positive outcomes from the policies may take much time to come out although the policies are right and properly implemented. 1.7 Criticism of green economy There are many criticism of the concept of green economy. Many individuals and organizations criticized this concept from different point of view. Some of the famous criticisms of green economy are presented below:  Many researchers argue that green economy uses price mechanism to protect nature which will extend corporate control over new areas like water and forestry.  Research organization ETC Group argues that corporate emphasis on green economy will increase corporate power and create the most resource gap.  Venezuelan professor Edgardo Lander says that the UNEP’s report ‘Towards a Green Economy’ ignores the fact that capacity of existing political systems to establish regulations and restrictions to the free operation of the market is seriously limited by the political and financial power of the corporations.  Ulrich Hoffman says that the focus of green economy and green growth is particularly based on an evolutionary approach. He argued that these concepts will not be sufficient to cope with the complexities of climate change and may rather give much false hope and excuses to do nothing really.  Ecological economist Clive Spash argued that the green economy advocated by the UN is not a new approach and it is actually a division from the real drivers of environmental crisis. He also criticized the basis for valuing ecosystem services in monetary terms. 15
  20. 20. CHAPTER 2 Components of Green Economy Implementation of green economy requires an overall modification in the economic system. Traditional fossil fuel based brown economy damages the natural environment and ecosystem by over utilizing natural resources (coal, oil, gas etc.) and creating pollution. Green economy focuses on making the overall economic activities environment-friendly. According to the concepts of this economy, all the sectors of the economy should be made green which means pollution free. The banking, investment, energy utilization, agriculture, employment creation, transportation, water management, waste management and land management in the economy should be made green. Thus the main components of green economy are: Green banking, Green investment, Green agriculture, Green transportation, Green employment or green jobs, Green fuel/renewable energy, Waste management, Water management, Land management and Forestry. All these components of green economy will be discussed in this chapter. 2.1 Green banking 2.1.1 Definition and meaning Generally banks are considered as environmental-friendly and pollution-free institutes because of their operational activities. But banking activities have indirect impacts on the environment. Banks increase environment pollution by delivering financial and advisory services to their pollution creating customers. Brick fields, cement, textiles, power, fertilizer, paper, chemical and many other industrial projects are financed by the banks and these industrial projects are mainly responsible for environment pollution and global warming. So, banks can play an important role in environmental protection and environmental sustainability. Green banking is the operation of banking activities giving special attention upon the environmental, ecological and social factors aiming at the conservation of natural 16
  21. 21. environment and natural resources. Green banking is also called ethical banking, moral banking, sustainable banking and responsible banking. 2.1.2 Areas of green banking Green banking activities have two broad areas. Firstly, banks can make their day to day internal activities green by using renewable energy (solar power, wind energy etc.), installing automation system and reducing paper based transactions. Secondly, banks can develop environment-friendly financial and credit policies; determine environmental risks before sanctioning loans to any project and support the growth of green undertakings (renewable energy projects, waste management, clean transportation, organic agriculture etc.). 2.1.3 Green banking products and services Banks can offer a broad range of green products and services to their customers, for example: Green mortgages  Green saving accounts  Green loans  Green credit cards  Green checking account  Green money market account  Mobile banking  Online banking  Remote deposit  Green finance 2.2 Green investment 2.2.1 Definition and meaning Investing activities which contribute to the protection and improvement of the natural environment and ecosystem are called green investments. Companies that conserve natural 17
  22. 22. resources, produce and distribute renewable energy, run clean air projects, supply safe drinking water and perform any other environmentally conscious business are called green companies. Investing in these companies or in any other projects under these companies are called green investments. The main feature of green investment is that it earns all or most of its revenue and profit from green activities. 2.2.2 Some forms of green investments Green investment may take the forms of traditional investment vehicles, for example stocks, mutual funds and exchange trading funds etc. These investment vehicles are issued by the green companies that are engaged in developing alternative energy sources (solar, wind, biogas, hydropower etc.) and have the conscious environmental practices. In the major stock exchanges of the world, many green companies are seen to trade their stocks. Green investing can be made through exchange trading funds (ETF) which takes the forms of stock indexes made up of green companies. Mutual fund can also be an alternative form of green investing in which a portfolio manager makes the green asset allocation decisions based on the fund’s prospectus. 2.2.3 Risk and return on green investments Green investments are environment-friendly investments and can take the form of traditional investments. But it should not be thought that these green investments are safer and more high-yielding compared to the traditional non-green investments. Most of the green companies are in their developing stage. High initial costs are associated with these companies because they focus on developing alternative energy sources and methods. As a result, the revenue yields of these companies are low. At the same time, investing in these green companies is riskier than investing in the traditional companies. However, these green companies have high earnings and growth potentials. 2.2.4 Wrong ideas regarding green investments Sometimes people hold very wrong beliefs and ideas regarding green investments and green companies. They consider some companies as green but actually these companies are operating in the grey areas. A company may have very good environmental preservation measures but still may be non-green. Unfortunately, some investors consider this type of 18
  23. 23. companies as green companies. For example, if oil companies take required precautionary measures to minimize the direct damages to the environment while drilling for oil, some may think that the companies and their operations are green. Based on this wrong idea, they may take decisions to invest in these companies. But actually these companies are not green because burning the fossil fuel is one of the main causes of global warming. 2.3 Green agriculture 2.3.1 Definition and meaning The agricultural systems which reduce the application of chemical fertilizers and pesticides, increase the firm’s productivity, rebuild ecological resources, reduce soil erosion and enhance soil fertility, are called green agriculture. 2.3.2 Benefits of green agriculture over the conventional agriculture Green agriculture has many benefits over the conventional agriculture. Firstly, the conventional agriculture emits many harmful gases in the atmosphere. Researches show that conventional agriculture is responsible for 58% of global nitrous oxide emission and 47% of global methane emission. By 2030, methane emission is expected to increase by 60% through the conventional agricultural system. But if green agricultural methods are used, these emissions can be reduced. Secondly, traditional agriculture requires more farming lands. So, forests are being cut down for increasing cultivable lands. This deforestation is responsible for 18% increase in greenhouse gas in the atmosphere. Green agriculture can increase production without utilizing more lands. As a result, the level of deforestation and greenhouse gas emission will be reduced. Thirdly, the conventional agriculture increases the use of phosphorus content in the environment. The use of phosphorus content has increased by 75% during the last half century. This content flows to the canals, rivers and oceans by rain water and floods. This creates a great threat to the ecosystem in the watery areas. This thereat can be handled through implementing green agriculture. Finally, the conventional agriculture uses much chemical fertilizers and pesticides for increasing the production. These chemical items enter into the food chains of 19
  24. 24. human and animals. As a result, human food chains are polluted causing over 40000 deaths per year. This large number of deaths can be prevented by implementing green agriculture. 2.3.3 Methods of green agriculture  Organic agriculture  Crop diversification  Mixed cultivation  Mushroom cultivation  Bee keeping  Pesticide free vegetable cultivation  Sericulture  Bio-slurry  Conservation agriculture 2.3.4 Concerns in transitioning to green agriculture While transitioning to green agriculture from traditional agriculture, food production may face a mild decline at the very beginning stage. But proper implementation of green agricultural methods will dramatically increase the production and at the same time contribute to restore ecosystem. It should also be kept in mind that proper implementation of green agriculture requires private, public and civil initiatives, food security and social equity. 2.4 Green transportation Transportation sector is the major source of greenhouse gas emission and environment pollution. Currently, 95% of transportation energy comes from petroleum. Researches show that 23% of global energy-related greenhouse gas is emitted from transportation sector. Prevention of pollution in this sector is also the objective of green economy. Green transportation is one of the main sectors in green economy. According to UNEP, transportation is considered ‘green’ when it supports protection of climate, ecosystem, 20
  25. 25. public health, natural resources, economic growth and social welfare. The goal of green transportation is not only to reduce air pollution but also to support economic growth. There are many ways by which transportation sector can be made green. Firstly, public transportation system should be given more importance and private vehicles should be reduced. This will minimize the emission of greenhouse gas. Secondly, rail and marine transportation should be given priority over road transportation because these transportation systems have low emission of greenhouse gas. Thirdly, hybrid engines can be used in motor vehicles which will increase energy efficiency and reduce air pollution. Fourthly, use of electric and solar energy should be increased in transportation sector for greening this sector. Finally, the greenest transportation means which include walking, cycling, nonmotor vehicles, animal powered vehicles and human powered vehicles can be used. 2.5 Green employment or green jobs 2.5.1 Definition and meaning Green employment means environment-friendly employment opportunities. Works that protect environment, restore biodiversity, reduce energy consumption, decarbonize the economy, minimize waste generation and protect pollutions are called green employment. Working in agriculture, performing research and development (R & D) activities, performing administrative works, developing alternative energy sources and providing environment conscious services are the examples of green jobs. According to UNEP and ILO, green jobs can be generally defined as the direct employment created in different sectors of the economy and through related activities, which reduce the environmental impact of those sectors and activities, and ultimately brings it down to sustainable levels. This includes ‘decent’ jobs that help to reduce consumption of energy and raw materials, decarbonize the economy, protect and restore ecosystem services like clean water, flood protection and biodiversity and minimize the production of waste and pollution. This definition of green job also covers the criteria of decent work condition, adequate wage, safe working conditions, worker’s rights, social dialogue and social protection. 21
  26. 26. 2.5.2 Ways of creating green jobs Green jobs can be created in many ways. Firstly, by developing and promoting the renewable energy sources will create many green jobs. Many people will be able to work in the development and promotion of these energy sources. At the same time, many industries and economic activities will grow up based on these energies which will create green jobs. Secondly, by promoting green agriculture many green jobs can be created, for example organic farming, mushroom cultivation, bee keeping, sericulture, water conservation and pesticide free vegetables cultivations can create many green jobs. Thirdly, eco-friendly services, for example ecotourism, forestation and conservation of forests, can create green jobs. Fourthly, sustainable transport, for example mass transport, can create green jobs. Finally, activities related to reduce greenhouse gas and climate change adaptation can also create a lot of green jobs. 2.5.3 Green employment and the concern of social welfare Besides environmental conservation, green employment has to concentrate on social welfare. Otherwise, crating social employment will be hampered. So, green employment should ensure: Employment opportunities for all  Unforced work and equitable payment  Proper utilization of the productivity of the factors of production  Fair and equal treatment in employment  Gender equality  Decent working hours  Favorable working environment  Social protection for the employees and workers  Social dialogue for the betterment of the workers  Healthy workforce relations 2.5.4 Influencing factors or drivers of green employment The influencing factors or drivers of green employment are as following:  Government policy and regulations  Available technology 22
  27. 27.  Innovation  Markets for green industries  New customer habits  Changes in the environment 2.5.5 Obstacles in the way of creating green employment Creating green employment opportunities requires many changes in the sectors of traditional economy. As a result, there are many obstacles in fostering green employment. Firstly, many people have the traditional thinking and they are not willing to think the economy and its activities in a different way. This traditional thinking obstructs the creation of green employment when these people are in the policy making. Secondly, there is a risk that the green industries and companies will not get suitable market or customer group at the initial stage. This risk also deters the creation of green employment. Thirdly, creation of green employment depends much on technological advancements and innovations. If there is lack of innovation and lack of technological unavailability, creation of green employment will be hampered. Finally, there are many interested groups who favor the brown economic activities, for example extractors of mineral resources, exporters of mineral resources, transportation companies and trade unions. These interested groups create obstacles in the way of creating green employment. 2.6 Green fuel/renewable energy 2.6.1 What is renewable energy? Energy sector is one of the most important sectors of economic development and advancement. In the present world, energy is mainly supplied from three mineral resources, coal, oil and gas. With a view to achieving high economic growth these mineral resources are used in a large scale. As a result, the environment of earth is continuously being polluted. Again, these mineral resources have limited reserves on earth. There is a possibility that the scarcity of these resources will hamper the economic growth in near future. So, we are standing in front of an environmental and economic crisis. In such a condition, the green fuel or renewable energy can give us proper solution. This renewable 23
  28. 28. energy is the inseparable part of green economy. These energies are pollution-free and their supply will not run out. Renewable energy is generally defined as energy that comes from resources which are continuously replenished on a human timescale. Examples of renewable energy sources include sunlight, wind, rain, tide, waves and geothermal heat etc. But all these sources directly or indirectly derive their energy from the sun. 2.6.2 Available technologies for utilizing renewable energy sources Many technologies have been developed for the utilization of renewable energy sources and many technologies of this field are in developing stage. For example: Wind power technology – this technology uses the velocity or speed of the wind to generate electricity.  Hydropower technology – this technology uses the speed of the water flow for generating energy.  Solar energy – this technology uses the radiation of sun for generating heat and electricity.  Biomass – by photosynthesis, the plants capture energy from the sun. This energy is then stored in the plants. When the plants are burnt they release the stored energy.  Biofuel technology – this technology produces energy from the plant or animal body, for example biogas, synthetic gas, landfill gas etc.  Geothermal energy – thermal energy is generated and stored in earth. This energy is generated from the formation of earth and from radiation decay of minerals. This stored thermal energy can be used to produce electricity. 2.6.3 Economic benefits of renewable energies  Renewable energy can fill up the energy shortage.  Renewable energy sources are environment-friendly and reduce pollutions.  Renewable energies can be utilized at low costs.  Renewable energies can play an important role in rural electrification.  These energies foster economic growth. 24
  29. 29.  Development and distribution of these energies can create employment opportunities.  Small, medium and cottage industries can grow up depending on these renewable energies. 2.6.4 Problems in the renewable energy sector There are many reasons for which the use of renewable energies is criticized. Firstly, some of the renewable energy sources are variable and intermittent, for example, solar power and wind power. Secondly, sometimes people hold wrong ideas regarding these energies. It is found in many cases that building the renewable energy infrastructure is resisted by the local people. Finally, the success of the renewable energy projects depends on public support and consent from the local community. A potential project in this sector may not succeed due to lack of public support and local acceptation. However, it is also true that all these problems can be overcome through the development of efficient technology and creating public awareness. 2.7 Waste management 2.7.1 Definition Waste management is a major part of green economy. Huge quantities of wastes are being generated every day from households, industries, agriculture and transportation. Proper management of these wastes has become a great concern in the present times because of their negative impacts on environment and human health. As a result, green economy pays much importance on proper management of wastes. Waste management is the collection, transportation, processing, disposal, managing and monitoring of waste materials. Waste management relates two broad areas - Firstly, the production of waste materials in human activity and secondly, the process undertaken to reduce their effects on environment, health and aesthetics. All types of waste materials, for example liquid, solid, gaseous or radioactive, fall under the area of waste management. Proper implementation of green economy is not possible without ensuring proper waste management. 25
  30. 30. 2.7.2 Concepts related to waste management Waste hierarchy – waste hierarchy consists of two 3 Rs (reduce, reuse and recycle). This concept guides that the quantity of waste generation should be reduced, the wastes generated from different sources should be reused for generating energy or other products, efficient technologies should be used to recycle the waste materials for further use. Polluters pay principle – polluters pay principles says that the waste generating parties should pay for the impacts of waste in the environmental. They should also bear the cost of waste disposal. 2.7.3 Methods of waste management Landfill – this is the most inexpensive method of waste management. Under this method, waste materials are buried in any abandoned land, mining voids and borrow pits. If properly designed and well-managed, landfill can be a hygienic way of waste disposal. But if not properly managed, this method will create pollutions and affect human health. Incineration – under this method, solid or liquid organic wastes are treated. Organic wastes are subjected to combustion so as to convert them into residue and gaseous products. This method can reduce the quantity of solid waste up to 30%. Incineration converts waste materials into heat, gas and stems. This method is also called thermal treatment. Recycling – this is a method of using the waste materials to produce new products. There are some waste materials, for example unused cans, glass bottles, useless steels, old equipment, jars, newspapers, paper boars and cartoons, which can be reused by converting into new products. This method is an efficient way of waste management. Biological reprocessing – this method of waste management is useful for organic materials, for example plant material, paper products and food scraps. This method uses composting and digestion process for decomposing the organic materials. The resulting materials are then used as compost in agriculture. Again, the composting and digestion process creates waste gas (methane) that can be captured and used for generating electricity and heat. 26
  31. 31. 2.8 Water management Water is essential for life. Only 3% of the water resource on earth is fresh water. Of this 3%, two-third is locked up in ice caps and glaciers. From the remaining 1%, one-fifth is located in remote areas and is subject to seasonal rainfall. Only 0.08% world’s fresh water is available for our drinking, cooking, agriculture, manufacturing and other economic activities. Due to the increasing economic activities, this limited usable water is continuously being contaminated. So, proper management of this resource has become a part of green economy. Green economy aims at protecting water pollution, conserving water, purifying contaminated water and ensuring the supply of safe water for all. In green economy, water management is the activity of planning, distributing and managing the optimum use of water resource. Success of green economy depends on sustainable, integrated and resourceefficient use of water. Green economy gives much importance on urban water management because the major sources of water pollution, for example households, mills, industries and sewerage, are mainly in the urban areas. These sources produce huge quantity of waste materials which finally fall in the rivers and canals. Again, the largest user of water resource is agricultural sector which consumes almost 70% of total water consumption. In this sector, many chemical fertilizers and pesticides are used to increase production. These chemicals flow to the ponds, lakes, canals, rivers and oceans through rain water. So, water management in this sector is also a great concern of green economy. Measures suggested for the efficient management of water resource include introducing safer irrigation practices, promoting onfirm wastewater treatment, actions to destroy pathogens from water, reducing the using of chemical fertilizers and pesticides etc. 2.9 Land management Land is the most important no-renewable geo-resources of the earth. Land supports most of our economic and social activities. As the civilization advances, the socio-economic activities (business, agriculture, mining, industrialization, urbanization, education etc.) also 27
  32. 32. increase. These increased socio-economic activities have negative impacts on land, for example- loss of fertility, land pollution, land degradation, soil erosion etc. As a result, the supply of fertile land is reducing. Proper land management has also become a great challenge for the present world. The area of green economy also covers sustainable land management. So, land management is also a component of this economy. This economy aims at conserving fertility of land, preventing land erosion, reducing land pollution and ensuring proper allocation of land among different economic activities. 2.10 Forestry Almost one-third of the land mass of the earth is covered by forests. More than 1.6 billion people directly or indirectly depend on forests for their livelihood. Forests play very significant role in controlling the flow of the rivers and ensuring water supply for us. Moreover, forests have many other ecological, economic, social and health benefits, for example protecting natural calamities, creating jobs, conserving the ecosystem, providing shelter for plants and animals etc. in spite of all these positive contributions, we are destroying forests at random. Global deforestation rate at present is 13 million hectares per year. But forests are at the heart of green economy or environment-friendly economy. So, forestry sector is one of the inseparable components of this economy. This economy aims at reforestation, fighting deforestation and conserving forest lands. A research of United Nations Environment Programme (UNEP) suggests that a $30 billion investment in fighting deforestation will generate a 2.5 trillion savings in products and services. 28
  33. 33. CHAPTER 3 Advancement of Green Economy Around the World The world is gradually moving towards green economy. The transition to green economy or environment-friendly economy is not at the same level around the world. This transition level is very high in some countries, for example Switzerland, Australia, Singapore, Luxemburg etc. Again in some countries the transition level is very low, for example Afghanistan, Somalia, Mali, Haiti, Iraq etc. This chapter of the paper tries to present an overall picture of green economic advancement around the globe. There is no single measurement or rating by which we can understand the global advancement towards green economy. If we want to get such an overall picture, we have to go through the following three types of discussions: 3.1 Sector wise advancement of green economy in different countries 3.2 Successful green economic initiatives in different countries 3.3 Environmental Performance Index 2014 and top performer countries After going through all these discussions, we will understand the overall progress of green economy around the world. 3.1 Sector wise advancement of green economy in different countries 3.1.1 Green banking in different countries Economic development and environmental sustainability are very closely related. But keeping a balance between these two is very challenging. When we think about economic development, environmental issues will come automatically. Besides, greenhouse gas emission, global warming and climate change have emerged as the most important discussed issues all over the world. People all over the world are raising their voice against environmental degradation. As a result, governments in many countries are trying to ensure a balanced economic development without damaging the natural environment. 29
  34. 34. In such a condition, green banking can play a significant role in conserving the environment. The concept of green banking has been developed in the western countries but now it is practiced in most of the countries of the world. Green banking is the practice of environment-friendly banking activities which help to preserve the environment. Through this practice, banks provide innovative green products and support economic activities which are not hazardous to environment. Green banking practices exist in many countries of the world and some of them have achieved much progress in this field. For example, England, Australia, Malaysia, Brazil, Canada, Hong Kong, China, Japan, Spain, USA, Germany, Switzerland, South Africa, India, Hungary, Poland, Qatar, Scotland, Serbia, Singapore, South Korea and Turkey have advanced in green banking practices. But the level of practices is not the same for all these countries and there is no universally accepted ranking of countries practicing green banking. But every year, green banks are ranked according to their green performance by Bloomberg Markets Magazine. To make ranking, Bloomberg Markets looks at their efforts to reduce their own waste and carbon footprints and at their investments in clean energy. In 2012, this magazine ranked top 20 green banks from different countries. The ranking is presented below: Table: 3(a) Ranking Banks City/country 1 Citygroup New York, USA 2 Banco Santander Madrid, Spain 3 JPMorgan Chase & Co. New York, USA 4 Mitsubishi UFJ Financial Group Tokyo, Japan 5 Credit Suisse Group Zurich, Switzerland 6 Goldman Sachs Group New York, USA 7 Deutsche Bank Frankfurt, Germany 8 Mizuho Financial Group Tokyo, Japan 9 Lloyds Banking Group London, UK 10 Barclays London, UK 11 Morgan Stanley New York, USA 30
  35. 35. Ranking Banks City/country 12 Standard Bank Group Johannesburg, South Africa 13 Itau Unibanco Holding Sao Paulo, Brazil 14 Royal Bank of Scotland Group Edinburgh, Scotland 15 UBS Zurich, Switzerland 16 Sumitomo Mitsui Financial Tokyo, Japan 17 Macquarie Group Sydney, Australia 18 Royal Bank of Canada Torrent, Canada 19 Commerzbank Frankfurt, Germany 20 Banco Bilbao Vizcaya Argentaria Bilbao, Spain Source: Bloogmerg Markets, Apr 3, 2013 3.1.2 Top countries in green investments Clean technology, renewable energy and environment-oriented companies are reshaping the global economy while pure resource focused economies may decline in the near future. Countries those focus on environment and its sustainability may emerge as the economic leaders. In 2012, made a list of top countries for green investment. Those countries are: Canada, United States, China, Australia, Japan, Germany, Sweden, Israel, Singapore and United Kingdom 3.1.3 Use of renewable energy around the world Sustainable Energy and Renewable Energy are terms which are thrown around a lot these days. The US Energy Information Administration (EIA) estimates that in 2008, 10% of the world’s energy consumption was from renewable energy sources. EIA forecasts that by 2035, consumption of renewable energy will be about 14% of total world energy consumption. The coal, oil and natural gas on which the world relies heavily are all non-renewable and will eventually dwindle and disappear. By contrast, many types of renewable or sustainable energy sources, such as wind and solar energy are constantly replenished and will never run out. 31
  36. 36. These are clean sources of energy which means that they have a much lower environmental impact than conventional energy technologies. They won’t run out, their costs revolve around materials and workmanship for facilities rather than on expensive energy imports. The major portion of world’s renewable energy is in the hand of five countries. The possession of renewable energy can be summarized in the following table. Table 3(b) Country % of world’s share of renewable energy USA 27.70% Germany 11.70% Spain 7.80% China 7.60% Brazil 5.00% Others 40.20% Source: care2 [Online]. (URL The United States: Use of renewable energy is increasing due to federal, state, and local tax and other incentives, as well as mandated state goals. Despite, attempting to join international agreements or to introduce long-term, large scale reductions in emissions, this has met with opposition in Congress and in the private sectors. Germany: Germany made a historic decision when the country decided to phase out nuclear power in favor of alternative sources by 2022. Ironically, it is the only country in the G-20 economic bloc to project a decline in clean energy investment partially because it has already done much as an early leader in renewable energy. 32
  37. 37. Spain: In April 2012, wind power became Spain’s largest source of electricity generation although the country still imports the majority of its energy. Spanish producers are also building turbines and installing wind farms internationally. Sadly, with the current economic problems in Spain, this may change. China: China is erecting 36 wind turbines a day and building a robust new electricity grid to send this power thousands of miles across the country from the deserts of the west to the cities of the east. It is a part of a long-term plan to supply 15% of the country’s energy from alternative and renewable sources by 2020. Brazil: Brazil has boosted large investments into the wind sector through government auctions for contracts and is also working to attract foreign investment into solar energy. The country has also made a pledge to have solar power in all twelve venues when it will host the 2014 World Cup. Other countries, for example Switzerland, France, Denmark, Australia, New Zealand, Norway, Canada, Sweden and United Kingdom also produce and use much renewable energy. 3.1.4 Use of solar energy around the world (2010) Table 3(c) Country Capacity (Megawatt) Germany 17,183 Spain 3,784 Japan 3,682 Italy 3,494 USA 2,528 33
  38. 38. Country Capacity (Megawatt) Czech Republic 1,953 France 1,025 China 893 Belgium 803 South Korea 655 Rest of the world 3,596 Source: European Photovoltaic Energy Association 3.1.5 Use of wind power around the world (2012) Table 3(d) Country Installed capacity (Megawatt) China 75,564 USA 60,007 Germany 31,332 Spain 22,796 India 20,149 UK 8,445 Italy 8,144 France 7,196 34
  39. 39. Country Installed capacity (Megawatt) Canada 6,200 Portugal 4,425 Rest of the world 39,852 Source: Wind power by counties, Wikipedia, the free encyclopedia 3.1.6 Use of hydropower around the world (2010) Table 3(e) Country Capacity (Giga watt) China 1,96,790 Canada 88,974 USA 79,511 Brazil 59,080 Russia 45,000 India 33,600 Norway 27,528 Japan 27,229 Sweden 16,209 Venezuela 14,622 Source: 35
  40. 40. Hydropower is used in at least 150 countries. Almost 20% of world electricity production depends on this power. The use of this power is expected to grow by 40% within the next 25 years. 3.1.7 Use of geothermal energy around the world (2013) Table 3(f) Country Capacity (Megawatt) USA 3,389 Philippines 1,894 Indonesia 1,333 Mexico 980 Italy 901 New Zealand 895 Iceland 664 Japan 537 El Salvador 204 Kenya 195 Rest of the world 773 Source: Geothermal electricity. Wikipedia, the free encyclopedia 3.1.8 Advancement of organic/green agriculture around the world Agricultural land under organic agriculture is increasing in different parts of the world, for example Africa, Western Europe, Latin America, Caribbean areas and the USA. The advancement of organic agriculture can be summarized as:  At present, land under organic agriculture around the world is 38 million hectors.  In more than 10 countries, the organic agricultural land is 10% of total farm land.  1.8 million Producers are engaged in organic farming.  The global market for organic agriculture is 62.8 billion US dollar.  86 countries have organic legislation.  162 countries have sufficient data on their organic agriculture. 36
  41. 41. The countries which have the most organic agricultural land (2011) are as following: Table 3(g) Country Organic agricultural land (Million hectares) Australia 12.00 Argentina 3.80 USA 1.90 China 1.90 Spain 1.60 Italy 1.10 India 1.10 Germany 1.00 France 1.00 Uruguay 0.90 Rest of the world 11.70 Source: FIBL & IFOMA 3.2 Successful green economic initiatives in different countries 3.2.1 Organic agriculture in Cuba The collapse of Soviet Union and the long lasting trade embargo hampered the institutionalized agriculture in Cuba in 1980s. Cuban producers faced the insufficient supply of fertilizer, pesticides and other agricultural materials. They took this disadvantage as an opportunity. They converted their traditional farming systems into organic methods. The Cuban government eliminated the state-owned farms and let them operate as cooperative production units in 1993. More than 80% of the state-owned farm lands were handed over the local farmers. Although the farmers did not get the complete ownership, they got the right to rent their lands as long as they could meet the production targets which was known as production quotes. The farmers could sell the excess crops after meeting 37
  42. 42. their targets. This would give an incentive for the farmers and they could buy biofertilizers, composts and grazing animals for increasing their firm’s yield. National policies also encouraged urban organic farming. In 1994, the government started a programme called National Programme on Urban Agriculture. This programme encouraged the city dwellers to utilize their vacant lots and backyards in organic farming. More than 3,50,000 well-paid jobs were created through that urban farming and the city of Havana produced 4 million tons of fruits and vegetables per year. Soon, Cuba became selfsufficient in agriculture. Organic farming in Cuba not only had positive impacts on food security but also had numerous positive impacts on society, economy and environment. Chemical fertilizers and pesticides were avoided in the agriculture. As a result, Cubans could ensure good health and long-term wellbeing. 3.2.2 Forest management in Nepal 40% of the land area of Nepal was covered by forest lands. But during 1990s the forest lands were declining at 1.90% annually. To protect deforestation the government of Nepal took many measures. On of them was the establishment of Community Forest User Groups (CFUG). Through those groups, the country could manage one-fourth of its forest lands. Since 1990, 14000 CUPGs have been employing 35% of total population. Each group is given the responsibility for a specific area of forest. The group members form their own operational policies, determine harvesting rules, set prices for their products and decide how the surplus income will be utilized. These groups also provide savings, credit and scholarship facilities among the members. These facilities ensure an inclusive growth. The Forest Act 1993 of Nepal and the Forest Rules 1995 provide the legal basis for the Community Forest User Group. These rules and law recognize these groups as selfgoverning autonomous bodies in forest management. These initiatives have many positive outcomes on the economy, society and environment. Many employment opportunities have been created, income of people has been increased, social well-being of people has been enhanced and sustainable land and water management have been ensured by these CFUGs. Most importantly, the country has succeeded in 38
  43. 43. stopping the high decline in forest lands. Instead, the forest lands are increased at an annual rate of 1.35% in Nepal. 3.2.3 Solar energy in Barbados Barbados previously depended much on imported fossil fuel. As a result, the environment of the country started to decline gradually. In 2006, the government formulated a National Strategic Plan for 2006-2025 to reduce the dependence on fossil fuel and increase the use of renewable energy. Particularly the government focused on household solar water heater. The formula targeted a 50% increase in the number of household solar water heater. In 2012, Barbados could save 15,000 tons of carbon emissions and more than USS 100 million was the country’s energy savings. The solar water heater became very popular in the country. At present, half of the household use this technology. There are more than 40,000 solar water heaters of which 75% are being used for household purposes. The solar water heater has successfully penetrated in the domestic market. There are three Barbadian companies who are mainly controlling the market of this technology. These companies also have carbon credit potential. 3.2.4 Waste management in Republic of Korea The Republic of Korea has a tremendous success in waste management. In this country, waste materials are reused through recycling process. Although the generation of wastes has not declined in the country, proper management of wastes has rendered numerous benefits. The recycling activities are rapidly increasing and as a result, many new job opportunities are also increasing. The government’s Extended Producer’s Responsibility (EPR) system requires producers and importers to recycle a certain amount of waste materials. This system has created 3,200 new jobs and recycled more than 6,000 million tons of waste materials with a monetary value of $ 1.6 billion. This system has also reduced the CO2 by 4.12.000 tons. The volume of waste in the country is increasing but the quantity of recycling is also increasing. In 1995, 23.70% of the municipal solid waste was recycled while in 1007, 81.10% of municipal solid waste was recycled. 39
  44. 44. The quantity of waste which is not recycled is land filled. Korea also has introduced a land filled gas recovery project. Through this project, land filled gas is recovered and utilized for electricity generation. In 2009, this project produced 363.229 MWh. This project also has environmental benefits. It is estimated that by 2017 the project will reduce the CO2 emission up to 7 million tons. It is also estimated that from 2007 to 2017 this project will save Korea $126 million. 3.2.5 Eco-system restoration in Rwanda The protection and management of the environment is one of the pillars of Rwanda’s Vision 2020. The country has undertaken many initiatives to protect ecosystems for income generation and good governance. Several of these projects are the initiatives to preserve the Rwandan mountain gorilla and wetland restoration efforts in the Nyabarongo-Akagera network and Rugezi. Rwanda is home to the Gorilla beringei graueri, which is one of the world’s rarest species of gorilla. By collaborating with the Democratic Republic of Congo and Uganda in a shared commitment to ecosystem restoration, Rwanda has helped to restore the population of this critically endangered species to a slight increase in the Virungas National Park. In addition to the ecological benefits of preserving a threatened species, this scheme to protect the Rwandan mountain gorilla is also generating substantial revenues from tourism. The country’s booming tourism industry, which now accounts for the biggest share of national GDP, is driven primarily by the flagship gorilla. After a decline in tourism in the 1990s, gorilla visitation has since increased from less than 1200 tourists in 2000 to a record of 7417 visitors in 2004. With visitors paying US $375 each to see the gorillas, these tourists have generated over $3 million in revenue every year since 2005. This has also contributed to the creation of many new jobs to cope with the management and maintenance of the National Park and its related touristic activities. According to the Rwandan government, the majority of the revenue produced by tourism is reinvested in the park and in wildlife conservation. Some of these profits are also devoted to local projects in the area so that the local people can also get benefit from the enormous revenues generated by the park. 40
  45. 45. 3.2.6 Feed-in Tariffs in Kenya Kenya’s energy profile is characterized by a predominance of traditional biomass energy to meet the energy needs of the rural households and a heavy dependence on imported petroleum for the modern economic sector needs. As a result, the country faces challenges related to unsustainable use of traditional forms of biomass and exposure to high and unstable oil import prices. In March 2008, Kenya’s Ministry of Energy adopted a feed-in tariff. A feed-in tariff (FIT) is a policy instrument that makes it mandatory for energy companies or “utilities” responsible for operating the national grid to purchase electricity from renewable energy sources at a pre-determined price that is sufficiently attractive to stimulate new investment in the renewables sector. This, in turn, ensures that those who produce electricity from identified renewable energy sources such as solar, wind and other renewable sources have a guaranteed market and an attractive return on investment for the electricity they produce. Aspects of an FIT include access to the grid, long-term power purchase agreements and a predetermined price per kilowatt hour (kWh). It is expected that the FIT policy in Kenya could stimulate about 1300 MW of electricity generation capacity. If the projected generation capacity is realized, this could contribute significantly to ensure security of electricity supply in the country by increasing the reserve margin. As Kenya’s greatest renewable energy potential is in rural areas, the effects of the feed-in tariff policy are expected to trickle down and stimulate rural employment. This can happen through the construction of power plants. 3.2.7 Organic agriculture in Uganda Uganda has taken important steps in transforming conventional agricultural production into an organic farming system, with significant benefits for its economy, society and the environment. Organic agriculture (OA) is defined by the Codex Alimentarius Commission as a holistic production management system, which promotes and enhances agro-ecosystem health, including biodiversity, biological cycles and soil biological activity. It prohibits the use of synthetic inputs, such as drugs, fertilizers and pesticides. Uganda uses the lowest amount of artificial fertilizers in the world. The widespread lack of fertilizer use has been 41
  46. 46. harnessed as a real opportunity to pursue organic forms of agricultural production. A policy direction has widely been embraced by Uganda. In Uganda 85% of the population was engaged in agricultural production, contributing to 42% of the national GDP and 80% of the exports earnings in 2005/06. As early as 1994, a few commercial companies began deliberately engaging in organic agriculture. At the same time in Uganda, there was a general movement in the agricultural sector towards developing sustainable agriculture as a means of improving people’s livelihoods. By 2003, Uganda had the world’s 13th-largest land area under organic agriculture production and the highest in Africa. In 2004, Uganda had around 185,000 hectares of land under organic farming covering more than 2 per cent of agricultural land, with 45,000 certified farmers. By 2007, 296,203 hectares of land were under organic agricultural production with 206,803 certified farmers. This constituted an increase of 59% in terms of number of farmers and 60% in terms of acreage from 2002 to 2007. Certified organic exports increased from US$3.7 million in 2003/4, to US$6.2 million in 2004-2005, before jumping to US$22.8 million in 2007/8. In terms of price premiums and income for farmers, studies commissioned by UNEP and UNCTAD indicate that in 2006 the farm-gate prices of organic pineapple, ginger and vanilla were 300 per cent, 185 per cent, and 150 per cent higher, respectively than conventional products. Through organic farming, Uganda not only gains economically but also contributes to mitigating climate change, as GHG emissions per hectares are estimated to be on average 64% lower than emissions from conventional farms. Various studies have shown that organic fields sequester 3–8 tones more carbon per hectares than conventional agriculture. 3.2.8 Solar energy in Tunisia To reduce the country’s dependence on oil and gas, Tunisia’s government has undertaken steps to promote the development and use of renewable energy. A law established an “energy conservation system” on energy management in 2005. A fund mechanism was also created called the National Fund for Energy Management. This found was created to 42
  47. 47. support the increased capacity in renewable energy technologies and also to improve energy efficiency. From 2005 to 2008, clean energy plans have already allowed the government to save $1.1 billion in energy bills. Primary energy consumption from renewables together with savings from energy efficiency, reached to 20 per cent of total energy consumption in 2011. Total financial requirement to implement the plan have been estimated to $2.5 billion, including $175 million from the National Fund, $530 million from the public sector, $1,660 million from private sector funds and $24 million from international cooperation. The total fund is expected to be spent by 2016 on 40 renewable energy projects. Approximately 40% of the will be utilized to the development of energy export infrastructure. The energy savings expected to result from the Solar Energy Plan may reach 22 per cent for 2016 and reduction in CO2 may reach 1.3 million tons per year. 3.3 Environmental Performance Index 2014 and top performer countries In every two years, countries are ranked using the Environmental Performance Index (EPI). It ranks how well countries perform on high-priority environmental issues in two broad policy areas: protection of human health from environmental harm and protection of ecosystems. Within these two policy objectives the EPI scores country performance in nine issue areas comprised of 20 indicators. Indicators in the EPI measure how close countries are to meet internationally established targets or how close they are to the expected achievement (in absence of an internally established target). Recently an EPI has been published on 25th January 2014. This EPI ranked 178 countries according to their environmental performances. Top countries in the overall index are:-Switzerland, Luxemburg, Australia, Singapore, Czech Republic, Germany, Spain, Austria, Sweden, Norway, Netherlands, UK, Slovenia, Denmark, Iceland, New Zealand, Portugal, Finland, Ireland, Estonia etc. The nine issue areas of this index indicate the country’s performance in different environmental area. Although these issue areas are related to environmental performance, 43
  48. 48. they are closely related to the green economy. So, this section of the paper will highlight the top countries in each issue area of EPI 2014. These nine issue areas of EPI 2014 are: 1. Health impacts 2. Air quality 3. Water and sanitation 4. Water resource 5. agriculture 6. Forests 7. Fisheries 8. Biodiversity and habitat 9. Climate and energy Top performer countries in different issue areas are in the following table: Table 3(h) SL Issue areas Top performer countries No. 01 Health impacts Sweden, Cyprus, Slovenia, Germany, Portugal, Finland, Canada, United Kingdom, Singapore, Brunei Darussalam, Italy, Australia, Czech Republic, France, Netherlands, Ireland, Switzerland, Denmark, Norway, Macedonia etc. 02 Air quality Uruguay, Palau, Grenada, Mauritius, Barbados, Antigua and Barbuda, Seychelles, Trinidad and Tobago, Dominica, Argentina, Algeria, Venezuela, Tunisia, Morocco etc. 03 Water and sanitation Denmark, Sweden, Japan, Luxembourg, Australia, Finland, Singapore, Austria, Qatar, Netherlands, Belgium, Taiwan, Switzerland, Israel, Norway, Malta, Germany, Cyprus, United Kingdom, Iceland, France etc. 44
  49. 49. SL Issue areas Top performer countries No. 04 Water resource Singapore, Netherlands, Switzerland, Germany, United Kingdom, Luxembourg, Denmark, Spain, Australia, Italy etc. 05 Agriculture Singapore, Cameroon, Ecuador, Liberia, Panama, Trinidad and Tobago, Jamaica, Serbia, Argentina, Guatemala, Fiji, Kyrgyzstan, Guinea, Algeria, Venezuela, Macedonia, Sudan, Kenya, Saudi Arabia, Gambia etc. 06 Forests Chile, Ireland, Hungary, Serbia, Bosnia and Herzegovina, Tunisia, New Zealand, South Africa, Australia, Montenegro, Moldova, Mauritius, Uruguay, Cuba, Morocco, Georgia, Bulgaria, Iran etc. 07 Fisheries Sri Lanka, Timor-Leste, Solomon Island, Seychelles, Palau, Barbados etc. 08 Biodiversity and habitat Zambia, Kiribati, Darussalam, Germany, Botswana, Slovenia, Estonia, Brunei Switzerland, Luxembourg, Serbia, Zimbabwe, Belize, Czech Republic, Central African Republic, United Arab Emirates, Latvia etc. 09 Climate and energy Papua New Guinea, Singapore, Albania, Spain, Azerbaijan, Portugal, Switzerland, Sweden, Jamaica, Norway, Ireland, Slovakia, Qatar, Nigeria, Denmark etc. 45
  50. 50. CHAPTER 4 Green Economy in Bangladesh Bangladesh is a small country with a large population. Although the country is gradually developing, it faces many economic problems. Again, it is one of the worst sufferers of climate change. In this situation, green economy can play an important role to solve the economic and environmental crises here. But the green economic initiatives taken here are insufficient and the country is very slowly advancing towards green economy. This chapter of this paper will present the following issues:4.1 Probable benefits that Bangladesh can get from green economy. 4.2 Important initiatives towards green economy in Bangladesh 4.3 Sector-wise advancement of green economy in Bangladesh and 4.4 Bangladesh in Environmental Performance Index (EPI) 2014 4.1 Probable benefits that Bangladesh can get from green economy Besides protecting the environmental degradation, green economy can foster socioeconomic development of Bangladesh in many ways, for example: Green economy can create numerous job opportunities in Bangladesh through green agriculture, renewable energy, green banking and proper waste management.  Green economy reduces the carbon emission from the transportation and industrial sectors. So, if properly adopted, green economy will facilitate carbon credit business in Bangladesh.  Energy crisis in Bangladesh can be reduced through large scale utilization of renewable energy which is an integral part of green economy.  If the use of renewable energy becomes popular, government will be able to save much cost on traditional energy sector. 46
  51. 51.  Green economy can increase food production in Bangladesh through green agriculture. As a result, the country can achieve food security.  Bangladesh can effectively preserve its natural resources, biodiversity and ecology through green economy.  Forestation, one of the most important parts of green economy, can increase forestlands in Bangladesh. These forestlands will directly minimize natural calamities in this country. As a result, the country will be able to get rid of huge loss per year.  Forestation and conservation of natural environment will enhance natural beauty which in turn will enrich tourism industry of Bangladesh.  By protecting pollutions and reducing the use of poisonous chemical items, green economy can contribute to improve public health.  Water crisis in Bangladesh can be minimized through the adoption of green economy because this economy puts much importance on sustainable water management.  Green economy will increase economic activities, create more employment opportunities and foster economic growth in Bangladesh. Thus, this economic system will increase the income of people and reduce poverty.  Proper adoption of green economy will ensure social equity, social justice, gender equity and social welfare because all of these positive social elements fall under the area of green economy. 4.2 Important initiatives towards green economy in Bangladesh Although Bangladesh is very slowly transitioning towards green economy, some very significant initiatives have been taken in this country in the recent years. Some of these initiatives are as following: Sustainable & Renewable Energy Development Authority Act (SREDA) has been approved by the government.  Government has adopted plans to increase the use of renewable energy specially the solar energy and biogas technology. 47
  52. 52.  Tax exemption has been declared on the commercial production of renewable energy.  Green banking policy has been circulated by Bangladesh Bank.  Coastal afforestation projects have been initiated.  In the transportation sector, government is trying to increase the use of fuels that cause less pollution.  CDM projects have been undertaken to produce compost from the urban wastes. These projects have already got carbon credit.  Project has been undertaken to introduce environment-friendly technologies in the brick kilns. 4.3 Sector-wise advancement of green economy in Bangladesh 4.3.1 Green banking in Bangladesh Bangladesh Bank, the central bank of Bangladesh, issued the ‘Policy Guidelines for Green Banking’ on 27th February, 2011. This was the first formal initiative undertaken to introduce green banking in Bangladesh. This policy had three phases and all the scheduled bank were directed to implement those phases within three years. The policy guided that the implementation of the first phase should not exceed 31 st December 2011. The components of the first phase were- formulating green banking policy, incorporating environment risk rating in credit risk management, initiating in-house environment management, introduction of green finance, creating climate risk funds, introducing green marketing, promoting on-line banking, supporting employee training, creating customer awareness disclosing and reporting green banking activities etc. The contents of the second phase were- sector specific environmental policies, green strategic planning, setting up green branches, improving in-house environment management, formulating environmental risk management plan, undertaking rigorous programs to create customer awareness and reporting green banking activities etc. The scheduled banks were directed to implement this phase within 31st December 2012. Finally, the contents of the third phase were- introducing green banking products and report green 48
  53. 53. activities with external verifications. This phase was to be implemented within 31 st December 2013. The policy guidelines of Bangladesh Bank have many remarkable outcomes. For instance, up to 2012 All the scheduled banks have formulated their own green banking policies.  47 banks have introduced green banking unit and green office guide.  Environment risk rating has been performed for 12088 projects of which 11165 projects have been financed.  214 branches and 161 ATM offices are running by solar energy.  38 banks are fully automated.  Out of total 8392 branches of all the scheduled banks, 3445 (41.05%) have online banking facility.  Taka 90.42 million has been utilized for green marketing training and development.  Taka 703633.21 million has been disbursed for green banking purposes.  Taka 270921.53 million has been disbursed as green finance.  Taka 258.89 million has been used from climate risk fund.  25 banks have been given license for providing mobile financial services of which 16 banks have already started providing these services. These banks are providing mobile financial services to 3.6 million customers and average transaction volume is around taka 330 million per day. The number of customers in mobile banking is growing at the rate of 20% per month.  Most of the banks are providing 24-hour banking services through their ATM booths. Until 2012, 4738 ATM were in operation. 49
  54. 54. The top 10 banks for allocating budget in green finance for the year 2012 were as following: Table 4(a) No. Bank Budget No. Bank Budget allocation allocation (Million (Million taka) taka) 01 EXIM Bank 2500 06 Shahjalal Islami Bank 992.50 02 BASIC Bank 1200 07 One Bank 729.56 03 Bank Asia 1200 08 Islami Bank 542.37 04 Social Islami Bank 1040 09 Agrani Bank 500 05 Standard 1000 10 Al-Arafah Islami Bank 500 Chartered Bank Source: Annual Report on Green Banking 2012, Bangladesh Bank 4.3.2 Renewable energy in Bangladesh Bangladesh is a developing country and the demand of energy is increasing at the rate of 10% per year in this country. Traditional energy sources (natural gas, coal, petrol etc.) are not sufficient to meet this increasing demand. Moreover, the natural gas is likely to be depleted by the year 2020. In such a condition, the utilization of renewable sources (solar energy, wind energy, biogas energy, ocean wave energy, tidal power, hydro power, geothermal energy etc.) can be the best solution for this country. Traditional renewable energy sources have great importance in Bangladesh. Almost 65% of the final energy demand of the country is met by the traditional biomass fuels (fire wood, tree branches, cow dung, bamboo, straw, husk, leaves etc.). Solar thermal energy has been utilized in many households and industries in this country for different purposes, for example- open air drying of agricultural products, production of salt from the sea water, drying of cloths and fishes etc. Again, wind energy is used in sailboats in the rivers. But the use of modern renewable energy technologies is increasing now-a-days. Solar panels, Solar Home System (SHS) and biogas plants are the most commonly used modern renewable technologies in Bangladesh. 50
  55. 55. Bangladesh is a subtropical country and 70% of the year sunlight is dropped here. So, we can easily use this sunlight or solar energy to generate electricity. In fact, we are gradually advancing in this regard. Many initiatives have been taken to encourage people in using solar energy. Almost every newly built apartment uses solar panels with grid connection to get support during the load shedding periods. Many NGOs are working in the rural areas to provide people with solar panels with low costs. Until the middle of 2013, 14, 29,440 Solar Home System (SHS) have been in the rural areas of the country. Biogas is another popular source of renewable energy in Bangladesh. It is produced by the biological breakdown of organic matters in the absence of oxygen. Organic wastes such as dead plant and animal material, animal dung and Kitchen waste can be converted into a gaseous fuel called biogas. Biogas is a form of biofuel. A major component of biogas is 4070% methane (CH4). More than 24000 biogas plants have been installed in different parts of Bangladesh. Grameen Shakti is one of the largest NGO in the field of biogas. They have completed 13,500 biogas plants. Recently Seed Bangla Foundation has proposed a 25 KW Biogas based Power plant in Rajshahi. IDCOL, a government owned investment Company, fixed a target to set up 37,669 biogas plants in Bangladesh by 2012. The company also decided to install 25% of theses biogas plants in the northern region. Besides working in partnership with IDCOL, some organizations have constructed domestic biogas plants with their own funds. These organizations include Grameen Shakti (3,664 plants), BRAC (3,664 plants of their own) and other private organizations. Wind power is the conversion of wind energy by wind turbines into a useful form, such as electricity or mechanical energy. The power is directly proportional to the velocity of wind. The velocity of wind in the coastal areas, islands, the northern part, high lands and the hills of Bangladesh is sufficient to run wind turbines. So, the country has a great potential of generating wind power. Bangladesh Power Development Board (BPDB) has implemented a 0.90MW capacity of the grid connected Wind Energy (GCWE) at the Muhuri Dam areas in the Feni district in 2004. This is the first GCWE projects in Bangladesh. Again, in 2008, Bangladesh Power development board (BPDB) implemented a 1000KW capacity wind battery hybrid power project on the Kutubdia Island in the Cox’s bazaar district. Under this project, 50 stand-alone wind turbines were installed. Each of those turbines had a capacity Of 20 KW. The total capacity of all the wind turbines was to be stored in a battery bank. 51
  56. 56. Thus generating electricity from wind in the coastal areas can be transmitted to other regions of the country through the high voltage transmission lines. Very little operation and maintenance costs will be required during the whole life time of the wind turbines and no fuel will be required for generating electricity from wind. The flowing and falling of water is also used as the source of hydro power in Bangladesh. But this renewable technology has a limited use in this country. At present only, 230 MW of hydro power is utilized in Karnaphuli, Rangamati Hydro Station. It is the only hydro power plant operated by Bangladesh Power Development Board. Micro-hydro power plants and mini-hydro power plants have potentials in the Chittagong and Chittagong Hill Tracts. In these areas, the assessed capacity of plants is 10 KW to 5 MW. Ocean wave energy, geothermal energy and tidal power also have great potential in Bangladesh. But none of these renewable energy sources are utilized in this country. 4.3.3 Green employment or green jobs in Bangladesh In 2010, a report of International Labor Organization (ILO) estimated that there were 3.5 million core environment-related jobs in Bangladesh. 8, 00,000 of these jobs could be considered green as they met the decent work standards. Core environment-related jobs and green jobs accounted for nearly 7% and 2% respectively of total jobs (49.5 million) in the economy. Climate adaption activities and sustainable construction were mostly among the identified green jobs. Among the green jobs these category had 62% and 21% share respectively. On an average nearly $2 billion is spent on adaption activities each year. These investments support around 1.7 million jobs in key sectors like agriculture, water, construction, flood protection, cyclone shelters, water efficient irrigation, early warning system and public administration. National survey suggested that 66% of all the construction and infrastructure companies incorporate green building criteria in their business activities. It was estimated in 20062007 that one million workers were engaged in such construction business that adopt green 52