1b Green Growth in developing countries by Steve Bass - IIED


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The objectives of the Workshop: to share experience, identify lessons, promote good practice amongst development partners on how to advance country-led, inclusive green growth through in-country development planning and policy processes. Green growth is characterised as a means to achieve sustainable development – spanning international, national and local initiatives. Focus on in-country green growth initiatives and on how development partners are organising themselves to support these. The Workshop builds on the recent OECD book, Putting Green Growth at the Heart of Development and on IIED’s recent guide on national green economy dialogues and diagnostics, Scoping a Green Economy.

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1b Green Growth in developing countries by Steve Bass - IIED

  1. 1. CLIMATE RESILIENCE AND GREEN ECONOMY 1 Steve Bass 20 February 2014Author name Date Steve Bass 04-12-2013 ENVIRONET Workshop, Paris 20th February 2014: Green Growth, Development Planning and Policy Steve Bass, IIED Green growth in developing countries – lessons from 11 country dialogues
  2. 2. CLIMATE RESILIENCE AND GREEN ECONOMY 2 Steve Bass 20 February 2014 In-country multi-stakeholder dialogues1 on green economy Objectives: To explore green economy/growth opportunities, threats and conditions in developing countries To use the findings to improve stakeholder interaction and GE guidance at national and international levels 1 Hosted jointly by Finance and Environment Ministries. Facilitated by IIED. Supported variously by OECD, DFID (accountable grant to IIED), UNDP
  3. 3. CLIMATE RESILIENCE AND GREEN ECONOMY 3 Steve Bass 20 February 2014 Increasing country activity on GE • 2008 finance crisis kicked off – 15% ‘green stimulus’ • 300+ green economy plans, policies, practices and projects registered since Rio 2012 on www.uncsd2012.org
  4. 4. CLIMATE RESILIENCE AND GREEN ECONOMY 4 Steve Bass 20 February 2014IIED/GEC developing country dialogues Caribbean region (w CANARI) Botswana (w UNDP) Ethiopia (w OECD) Kazakhstan (w OSCE) Amapa state, Brazil Cambodia (w OECD) Himalaya region India (w GECoalition) Mali (w GECoalition) Brazil (w GECoalition) Zambia (w OECD, AfDB) Global (Wilton Park 2014)
  5. 5. CLIMATE RESILIENCE AND GREEN ECONOMY 5 Steve Bass 20 February 2014Dialogue questions: 1. Econ outlook for people/envt? 2. What desirable GE outcomes? 3. Are they being achieved? • reflected in politics and policy? • institutional foundations in place? • activities, finance, technology delivering? • stakeholders for and against? 4. How supportive are international GE initiatives of national vision?
  6. 6. CLIMATE RESILIENCE AND GREEN ECONOMY 6 Steve Bass 20 February 2014Dialogue results: reasons for GE/GG 1. High potential from green assets: growth, jobs, resilience 2. Failed economic models: • Growth is not serving wellbeing (8 of 12 high-growth countries have declining HDI, increasing inequality) • Current growth models create climate/econ vulnerability 3. Asymmetries in power, information & incentives: • Entrench the brown economy – it’s now being revived! • Entrench poverty and jobless growth • Neglect or degrade the assets of the poor (India: ecosystem services = 57% ‘GDP of Poor’)
  7. 7. CLIMATE RESILIENCE AND GREEN ECONOMY 7 Steve Bass 20 February 2014 Dialogue results: GE outcomes that resonate with national/personal visions 1. Human wellbeing – decent jobs, livelihoods, watsan… 2. Equity – in decisions, economic activity, cost/benefit 3. Natural capital – growing and producing value 4. Planetary boundaries – understood and not exceeded 5. Resilience – built in natural and human systems 6. Econ growth – in places and ways that deliver above  GE will only go mainstream when it is clear how it works at a human (personal and community) level  1-6 can be used as test of GE initiatives
  8. 8. CLIMATE RESILIENCE AND GREEN ECONOMY 8 Steve Bass 20 February 2014 GG is driven by country vision, and what works locally – not one international model • GHG abatement analysis and international climate funds are helpful, but insufficient (Eth, Cam, KZ) • Value of assessing GE contributions by key national players like corporations (stakeholder reporting) GG must be inclusive – even if Min Finance and big co’s kick off ‘green growth’ • SMMEs/informal economy can create new jobs at $100k/1KW – not $1M/100KW (India) • ‘Green’ can be dangerous without social justice: international ‘greening’ demands compliance with high formal standards, narrows the supply base. Inequality a WEF major risk 2014 GG results from multi-stakeholder processes over time – not just a one-off plan • GE politics; GE Accord between gov’t, business and NGOs (SA); GE action learning group (Caribbean) GG must be based on environmental assets – not just climate hazards • Biodiversity, NR value chains, country green product branding, climate resilience (Brazil) GG is investment-heavy – to counteract capital misallocation into the brown economy • Screen technologies – 70% of NR/energy productivity options have IRRs 10+% (McKinsey) Capacity and governance are essential GE foundations – not just green investment projects • 1 Integration mechanisms, 2 government expenditure, 3 green incentives… Dialogue results: national visions for GE
  9. 9. CLIMATE RESILIENCE AND GREEN ECONOMY 9 Steve Bass 20 February 2014 Dialogue results: national GE foundations 1. Integration mechanisms: • Multi-stakeholder forum (‘old’ SD Councils – ‘new’ GE accords) • Strategic environmental and social assessment (SEA/SESA) • Natural capital accounting (SEEA+) • New ecol/social metrics (GDP+; triple-bottom-line reporting) 2. Government expenditure: • Public environmental expenditure review • Sustainable public procurement 3. Green incentives: • Fiscal: resource pricing/taxation, subsidy reform, green funds • ‘Catalogue’ of local green activities/potentials • ‘Quality’ investment code  Some of these GE ‘foundations’ will already exist – identify them
  10. 10. CLIMATE RESILIENCE AND GREEN ECONOMY 10 Steve Bass 20 February 2014 International initiatives: new niches + new players GGGI: Support to many developing countries for ‘rigorous GG economic development strategies’ (technology screening) UN-PAGE: UNEP, ILO, UNIDO, UNITAR supporting 30 countries over 7 years: a suite of services to governments to build national GE strategies UNIDO: Green Industry Platform to mobilize action by industrial players WEF: GG Action Alliance – 50 financial institutions/corporations to help gov’ts adopt systematic approach to attracting finance to green sectors. WB: Three-pronged programme: 1. support national strategies; 2. Value natural capital (WAVES); 3. support upfront capital needs AfDB: GG Initiative has mixed support: knowledge products, build capacity, support pilot countries; Africa50Fund OECD: Comprehensive knowledge support: documenting GG indicators, capturing national experience, improving PS involvement and role of aid  Some collaboration – GEC, GGKP, as well as PAGE
  11. 11. CLIMATE RESILIENCE AND GREEN ECONOMY 11 Steve Bass 20 February 2014 Evolving international GE architecture NB illustrative only – not the result of detailed analysis!
  12. 12. CLIMATE RESILIENCE AND GREEN ECONOMY 12 Steve Bass 20 February 2014 International GG/GE – quick assessment + Increasingly active in developing countries + Potential to drive SD, attracting mainstream players / $ – But don’t tackle power/information/incentive asymmetries: • Biased to elites, formal economy, central government; they do little at local level, in the informal economy, with the poor directly • Focus on GHG abatement and C assets – not all 9 planetary boundaries, or wider range of natural assets of poor • Focus on boosting growth, rather than economic reform • Ignore management of global public goods and risks  GE will only go mainstream when it can articulate better lives for people
  13. 13. CLIMATE RESILIENCE AND GREEN ECONOMY 13 Steve Bass 20 February 2014 Suggestions for ENVIRONET work 1. Improve interaction: between stakeholders / world views; and between GE initiatives (national, GEC, OECD, GGKP, PAGE) 2. Real drivers of change: focus on both mainstream (MinFin, business) and local (informal economy, municipalities, SMEs) 3. Social justice: seek social safeguards and synergies in greening 4. Doubly green: green assets and risks beyond GHG abatement (NRM, biodiversity, climate resilience) 5. Finance reform: quality investment (not just climate $); build green asset classes (not just C); streamline green permissions 6. Critical capacity: up-scale Environet’s good SEA/NSDS work 7. Economic transformation: need ‘evolution’ of complex adaptive economies – therefore trials, selection, scale up and speed up 8. Global GE: need to manage GPGs and risks – not just national. Trade/finance reform, tax cooperation, etc – not just aid