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“Resilience and local Green
Economies”
1. Resilient to what? - Systemic Risk
2. Resilience – what does it look like?
3. Lo...
• Systemic risk is the risk of “breakdowns in
an entire system, as opposed to breakdowns
in individual parts and component...
1. Unprecedented precipitation (climate change?)
2. Rain rushes of the mountains due to
deforestation
3. Floods farms, dam...
Food price rises, crops and fish failure, food availability, housing flooded, energy price
rises and systems failing, tran...
• For a system to be resilient, no single entity or
approach should dominate…
• Improved management of systemic risks:
– S...
5. Measuring progress
• Sustainable development goals locally
• Small business numbers and vitality
• Community resilience...
3 Key points:
Thank you
Oliver Greenfield, Convenor, Green Economy Coalition
oliver.greenfield@greeneconomycoalition.org
1...
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Resilience and local Green Economies

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This webinar will analyse practical measures to improve resilience to the long-term challenges posed by the transition to more environmentally sustainable production in local economies.

Published in: Economy & Finance
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Resilience and local Green Economies

  1. 1. “Resilience and local Green Economies” 1. Resilient to what? - Systemic Risk 2. Resilience – what does it look like? 3. Local Green Economy – some policies to help Oliver Greenfield, Convenor Green Economy Coalition oliver.greenfield@greeneconomycoalition.org
  2. 2. • Systemic risk is the risk of “breakdowns in an entire system, as opposed to breakdowns in individual parts and components”. • Systemic risks are characterized by: – modest tipping points combining indirectly to produce large failures – risk-sharing or contagion, as one loss triggers a chain of others – “hysteresis”, or systems being unable to recover equilibrium after a shock • Systemic risks come from an interconnected global economy, with global finance, global supply chains built for efficiency BUT dependant on stable conditions – Can we rely on this stability? Examples: • 2009 financial crisis to current economic crisis • Banks – too big to fail • Interdependence • Homogeneity • Policies – stress testing, capital reserves etc. • Carbon bubble: • Costs of carbon • Stranded assets • Policies: Carbon exposure economic stress testing, divestment What is Systemic Risk?
  3. 3. 1. Unprecedented precipitation (climate change?) 2. Rain rushes of the mountains due to deforestation 3. Floods farms, damages infrastructure, energy 4. Farms excessive dependence on nitrogen fertiliser, due to continual soil erosion 5. Major flood washes off unprecedented levels of nitrogen 6. River, has been straightened and has low levels of biodiversity – it does not clean 7. Nitrogen loaded floods wash quickly out to sea 8. Nitrogen loading creates algal bloom 9. Algal bloom kills local fish-stocks, creates dead-zones 10. Local implications: Harder to get insurance, so harder to get investment, rebuilding 11. Small businesses and communities face systemic economic decline Systemic Risk – Weathering the storm
  4. 4. Food price rises, crops and fish failure, food availability, housing flooded, energy price rises and systems failing, transport price rises, roads & rail system failures Increased anxiety Changing consumer behaviours & preferences Declining confidence in governance Disruptive change, opportunities and liabilities, stranded carbon assets, loss of profitability, Litigation, Licence to operate Crisis of confidence - response? Carbon price, reporting legislations, removal of subsidies, water rationing, major political change Systemic Risk – contagion across systems Systemic Risk – system interactions
  5. 5. • For a system to be resilient, no single entity or approach should dominate… • Improved management of systemic risks: – Sustainable Development Goals – Financial stability board – (are they stress testing for carbon bubbles?) • ….AND Local green economies – Distributed and diverse economic systems able to withstand shocks, innovate, create community wellbeing, prosperity and jobs. Resilience to Systemic Risk
  6. 6. 5. Measuring progress • Sustainable development goals locally • Small business numbers and vitality • Community resilience 4. Influencing financial flows • Local taxes for local economies • Local banking – small scale sustainability banks - Germany (cooperative and public savings banks), GABV 3. Greening economic sectors • Distributed renewables owned locally • Local food systems • Vibrant SMEs and green business innovation parks 2. Investing in people • Inclusive regional economic planning • Community development plans A resilient local Green Economy – 5 policy areas 1. Managing natural capital • PES for system resilience and local jobs
  7. 7. 3 Key points: Thank you Oliver Greenfield, Convenor, Green Economy Coalition oliver.greenfield@greeneconomycoalition.org 1. Systemic risk - A global interconnected system built for efficiency contending with increasing volatility 2. Resilience is diversity – in scale, type and approach 3. Local green economies – need 5 areas of policy: measurement& governance, finance, sectors, people investment, natural capital management

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