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Green Economy Initiative

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Green Economy Initiative

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Green Economy Initiative

  1. 1. Green Economy Initiative United Nations Environment Programme Moustapha Kamal GueyeActing Head, Green Economy Advisory Services Unit
  2. 2. A multidimensional crisis rooted in patterns of development
  3. 3. The global contextMultiple crises: More than a financial and economic crisis:• Social - 18 to 51 million unemployed over 2007 levels & the number of extremely poor has increased by at least 100 million people worldwide.• Fuel - rising prices cost developing economies US$ 400 bn in higher energy bills in 2007.• Food - prices cost developing countries US$ 324 bn in 2007.• Ecosystems - EUR 50 bn worth of biodiversity is being lost each year.• Climate - current global GHG emissions at 42 Gt per annum - 5 times higher than the threshold.
  4. 4. On a business as usual path…B y 2 0 3 0 a n d b e yo n d … G lo b a l e n e r g y d e m a n d u p b y 4 5 % O il p r ic e u p t o U S $ 18 0 p e r b a r r e l G H G e m is s io n s u p 4 5 % G lo b a l a v e r a g e t e m p e r a t u r e u p 6 °C in t h e n e x t c e n t u r y S u s t a in e d lo s s e s e q u iv a le n t t o 5 - 10 % o f g lo b a l G D P a s c o m p a r e d t o t h e 3 % o f G D P lo s s f r o m t h e c u r r e n t f in a n c ia l c r is is P o o r c o u n t r ie s w ill s u f f e r c o s t s in
  5. 5. Discounting Natural Capital• G lo b a l G D P m ore tha n d o u b le d b e t w e e n 19 8 1 – 2 0 0 5 .• B ut 6 0 % of w o r ld ’ s e c o s ys te m s d e g r a d e d /e x p l o it e d u n s u s t a in a b ly (M E A, 2 0 0 5 ).
  6. 6. Distribution of Costs -> Poor people N a t u r a l c a p it a l is T h e r o le o f e n v ir o n m e n t a l c r it ic a l t o w e a lt h r e s o u r c e s in r e d u c in g c r e a t io n in lo w p o v e r t y , f ig h t in g h u n g e r , i n c o tm e acl ocua n titr a e sis. e s s e n t ia l n d o l o wae r ih g r c h ti lio n , “… a u r n p il a t we l t n c e a d a c c o u n t in g f o r a q u a r t e r o f w e a l t h ocr rt e a itt io n in t h e m al yp o o r e s t c o u n t r ie s , w h il e s u c h a s h a r e is o n l y 2 % in t h e w o r l d ’s r ic h e s t c o u n t r ie s .”
  7. 7. Our Capital Space… and our Economic Compass… Natural Capital tal al Capi n& Soci Huma Financial & Physical Capital “We cannot manage what we do not measure”7
  8. 8. Opportunity Amid Crisis
  9. 9. The Global Green New Deal • Revive the world economy, create new and decent jobs, and protect the vulnerable • Reduce carbon dependency, ecosystem degradation, and water scarcity - 1% of GDP in green sectors over two years • Eliminate persistent poverty by 2015…achieve the MDGs • Seed a process of transformative change by rebalancing financial and economic capital, human capital and natural capitalFrom : “Rethinking the Economic Recovery: A Global Green New Deal”, UNEP, Feb 2009
  10. 10. Green Stimulus
  11. 11. G20 Green Stimulus Spending Per Sector (US$ Billion)140120100 80 60 40 20 0 er r id te EE il es he Ra Gr as ow l Ot ing hic /w eP S/ Ve ld er CC i bl Bu at n wa o W rb ne Ca Re w Lo Source: HSBC Global Research, UNEP
  12. 12. South Africa’s Green Stimulus• S o u t h A f r ic a la u n c h e d a $ 7 . 5 b n f is c a ls t i m u l u s f o r 2 0 0 9 - 2 0 11.• A r o u n d 11% o r $ 0 . 8 b i l l i o n w a s a l l o c a t e d t o
  13. 13. Beyond Green Stimulus: Transition towards a Green Economy
  14. 14. Definition of Green Economy• A G r e e n E c o n o m y is c h a r a c t e r iz e d b y s u b s t a n t ia lly in c r e a s e d in v e s t m e n t s in e c o n o m ic s e c t o r s t h a t b u ild o n a nd e nha nc e the e a rth’ s n a t u r a l c a p it a l o r r e d u c e e c o lo g ic a l s c a r c it ie s a n d e n v ir o n m e n t a l r is k s .• T h e s e in v e s t m e n t s a r e d r iv e n b y o r s u p p o r t e d b y n a t io n a l p o lic y
  15. 15. Green Economy Initiative Components
  16. 16. Fostering a Green Economy in Africa “We see the green economy as an opportunity to respond to the notion that there is a trade-off to be made between faster economic growth and sustainable development, and the preservation of our environment” President Jacob Zuma, South Africa
  17. 17. Enhancing natural capital, Expanding wealth creation• A p p r o x im a t e ly 2 . 6 b illio n p e o p le r e ly o n • 10 % i n c r e a s e i n a g r ic u lt u r a l f a r m y ie ld s - > 7 % p r o d u c t io n r e d u c t io n in s ys te m s fo r p o v e r t y in A f r ic a ,• t h e2i r l im el ll ii o n o d 5 5 v i ho m o r e t h a n 5 % in s m a ll f a r m s A s ia (FAO 2 0 0 9 ) w o r ld w id e , 4 0 4 m illio n le s s t h a n t w o • G r e e n f a r m in g p r a c t ic e s h a v e he c ta re s of in c r e a s e d y ie ld s , la n d ( N a g a y e t s e s p e c ia lly o n 2 0 0 5 ) s m a ll f a r m s ,• SA m in cl lr e a sr emins o v e r a l l G D P c o min g f b oemt a g e ic unl t7u 9 a a n a b o r n a fa r w r e r l l d c uplrt ov a c t iv 6 y is o n a v e r a g e 2 .5 t ime s mo r e e f f e c t iv e in r a is in g i d u t e it 0 % 18 0 % . o f t a e a b oe lsa o f d t h e p o o r e s t q u in t il e in d e v e l o p in g c o u n t r ie s h r in c l me n ( H e r r tehn ne at n ae lq. u iv a l e n t in c r e a s e in G D P c o min g f r o m n o n - a a g r ic uUNEP –u –rGREEN ECONOMYo r p r o d u c t iv it y . l UNEPGREEN ECONOMYb INITIATIVE t a l l a INITIATIVE
  18. 18. Uganda’s Organic Agriculture Transformation O r g a n ic A g r ic u lt u r e 4 8 - 6 8 % lo w e r c a r b o n e m is s io n C arbon S e q u e s t r a t io n O r g a n ic f o o d & d r in k s : 97% of re ve nue s in O E C D c o u n t r ie sS $ 2 2 . 8 m i l ( 2 0 0 7 /8 ) A $ 50 8n % of b 0S $ 6 . 2 m i l ( 2 0 0 4 /5 ) g l o p ao d u c e r br lS $ 3 . 7 m i l ( 2 0 0 3 /4 ) ma r k e te l o p i n g in d e v O A E x p o r t s in U g a n d a g r o w in g n tt r i e s c ou a UNEP – Green Economy Initiative 10% pe r
  19. 19. Greening Industrialisation Comparison of Energy IntensitiesUnit of energy use per unit of GDP (kg of oil per constant 2005 PPP $ 0.45 0.4 0.35 equivalent) 0.3 0.25 0.2 0.15 0.1 0.05 0 1994 1996 1999 2000 2002 2006 1991 1995 1997 1998 2001 2003 2005 2007 1990 1992 1993 2004 Year World Sub-Saharan Africa Latin America & Caribbean South Asia Source: International Energy Agency, and World Bank PPP data.
  20. 20. GDP and Environment Performance Index in Africa Relationship between 2010 EPI and GDP for African Countries Environmental Performance Index 100.0 90.0 Mauritius 80.0 Ivory Coast 70.0 Namibia Tunisia Morocco Algeria Egypt 60.0 (EPI) Kenya Libya 50.0 South Africa Ethiopia 40.0 Cameroon Angola Nigeria 30.0 Senegal 20.0 Niger 2 R = 0.0445 10.0 0.0 4.50E+08 1.00E+11 2.00E+11 3.00E+11 GDP (2010 US$) T h e E P I is c o n s t r u c t e d f r o m t h e s c o r e s o f t w o p o lic y o b je c t iv e s : E n v ir o n m e n t a l H e a lt h , a n d E c o s y s t e m V it a lit y .e : 2 0 10 E n v ir o n m e n t P e r f o r m a n c e I n d e x
  21. 21. The Challenge of Energy• Limited access to energy is one of the greatest challenges to achieve the MDGs in Africa.• African firms lose 5% of their sales due to frequent power outages, a figure that rises to 20% for informal firms unable to afford backup generation.• Overall, the economic costs of power shortage are 1 to 2% of GDP (World Bank, 2010).• Investments in clean energy remain minor in Africa, totalling $0.9 billion in 2009 (SEFI, 2010).
  22. 22. Green Jobs through Clean Energy• A b o u t 2 . 3 m illio n jo b s in r e n e w a b le e n e r g ie s in c o m p a r is o n t o 2 m illio n e m p lo y e d in o il & g a s r e f in in g in d u s t r y i n 19 9 9 .• G lo b a lly , in v e s t in g U S $ 6 3 0 b n in t h e
  23. 23. Harnessing Africa’s Clean Energy PotentialSource: REN21, Figures from Renewable Energy Potentials 2008
  24. 24. Enabling Just Transitions Pricing Instruments Sustainable Public Procurement Favoring Green over Brown Draw lessons Describe major • In c e n t iv iz e green policies • C re a te in v e s t m e n t • G ove rnm and s and e nt s t im u la t e • From m a rke ts c orrec t e n a b lin g p o lic ie s n e Capacity v e g a t i Building• G ove rnm and fo r g r e e n c o n d it io n e x t e r n a lit ie e nts in f r a s t r u c goods s s• P r iv a t e ture c a n and • “ E n a b le in v e s t o r s id e n t if ie d s e r v ic e s in s e c t o r e nc ourag the• b u s in e s s e p r iv a t e e n a b le r s " es c ha p te rs s e c tor to in in v e s t in d e v e lo p in e n v ir o n m e g n t a lly c o u n t r ie s s u s t a in a b l UNEP – GREEN ECONOMY INITIATIVE UNEP – GREEN ECONOMY INITIATIVE
  25. 25. Measuring Progress: Green Economy IndicatorsA s e t o f in d ic a t o r s c a p t u r in g d if f e r e n t a s p e c t s o fa g r e e n e c o n o m ic t r a n s it io n • In v e s t m e n t , Suppl y De ma n d e m p lo y m e n t , a n d o u t p u t in k e y s e c tors of the g re e n e c onomy • D e c o u p lin g e c o n o m ic g r o w th fr o m im p a c t s o n t h e e n v ir o n m e n t Green Economy • Ag g re g a te in d ic a t o r s o f UNEP – Green Economy Initiative e c o n o m ic
  26. 26. Supporting National Initiatives:Green Economy Advisory Services
  27. 27. Current Active Engagement2 0 10 – 2 0 12 r o l l o u t c o u n t r i e s• A f r ic a : R e g i o n a l p r o j e c t i n 7 c o u n t r i e s - B u r k in a F a s o , E g y p t , G h a n a , K e n y a , R w a n d a , S e n e g a l, S o u t h A f r ic a .• E a s t A s ia : C h i n a , I n d o n e s i a , P N G , P h ilip p in e s , R e p . K o r e a .• E u r o p e : A r m e n ia , A z e r b a ija n , M o ld o v a , U k r a in e .• L a t in A me r ic a a n d C a r ib b e a n : B a r b a d o s ,D e liv e r a b le s : B r a z il, D o m in ic a ,• G r e e n E cx ocno m yr e g io p ia lg i n i t i a t i v e i n t h e Me i o – S c on n S t ur db e s a n . C a i ibe• G r e e nA S ia c Jt o r dSat n ,d L e s g u e o f A r a b• We s t s e: or u iea• G t a teens .J o b s S re• E n a b lin g p o lic ie s
  28. 28. More Information UNEP Green Economy Websitehttp://www.unep.org/greeneconomy/

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