Promoting the Green Economy for Africa’s Structural Transformation

1. Promoting the Green Economy for Africa’s Structural Transformation Afeikhena Jerome Nigeria Governors’ Forum Abuja, Nigeria African Economic Conference Addis Ababa, Ethiopia 25th – 28th October, 2011 Afeikhena Jerome AEC 2011

2. Outline • Introduction: • Conceptual Issues • The Green Economy in Africa • What is to be done Afeikhena Jerome AEC 2011

3. Introduction • The concept of “green economy” is gradually gaining currency in mainstream policy discourse unlike in the recent past when it was confined to Environmental Economics. • The recent traction for a green economy concept has no doubt been aided by widespread disillusionment with the prevailing economic paradigm as a result of the many concurrent crises experienced during the very first decade of the new millennium, especially the financial and economic crisis of 2008 to 2009 (crises in climate, biodiversity, fuel, food, water etc). • Africa. No doubt, has been at the receiving end of the intertwined impacts of these challenges. • At the same time, several agencies, most especially UNEP, have since 1998 been pushing for a viable alternative economic paradigm – one in which material wealth is not delivered perforce at the expense of growing environmental risks, ecological scarcities and social disparities. Afeikhena Jerome AEC 2011

4. Introduction • A recent publication by UNEP, 2011,Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication - A Synthesis for Policy Makers, argues forcefully that Green economy is not a drag on growth but rather a new engine of growth; a net generator of decent jobs, and also a vital strategy for the elimination of persistent poverty. • It also makes a compelling e case for investing 2% of gross domestic product (GDP) in 10 key sectors of the economy - agriculture, buildings, energy supply, fisheries, forestry, and industry including energy efficiency, tourism, transport, waste management and water - can trigger greener, smarter growth, while fighting poverty. Such an investment would set up the transition towards a green economy, defined as low carbon, resource efficient and socially inclusive. • We briefly explore how Africa can make the transition to a Green Economy Afeikhena Jerome AEC 2011

5. The Green Economy: Conceptual Issues There is currently no international consensus on the definition of green economy. However, UNEP offers the following working definition: “a green economy is one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities” It challenges two myths: • The trade off between Economic growth and environmental sustainability • Green growth is a luxury for developing countries. It is not only relevant to developed countries but also a key catalyst for growth and poverty eradication in developing countries. ‘’ It is not a straitjacket, nor is it prescriptive.” Afeikhena Jerome AEC 2011

6. Africa and the Green Economy • Africa’s economic growth in the past decade has been strong, but not inclusive. Poverty remains persistent and pervasive (UNECA Economic Report on Africa 2011). Unemployment and underemployment remain high even during times of rapid economic growth. • The current patterns of production and consumption could lead to the unsustainable utilisation and collapse of natural ecosystems which underpins our social and economic growth. • Africa is lagging behind the rest of the world in transiting towards the Green Economy. Apart from South Africa, Kenya, Botswana and a few other countries, awareness is low but growing. Afeikhena Jerome AEC 2011

7. Africa and the Green Economy • At the policy level: • African Ministers of Environment, Bamako declaration on the environment for sustainable development, African Ministerial Conference on the Environment, Thirteenth session, Bamako, Mali, 21–25 June 2010: “We, the African Ministers of Environment, declare our resolve to urge all countries fully to explore opportunities for building green economies, through, among other things, the development of clean technologies, renewable energies, water services, green transportation, waste management, green buildings and sustainable agriculture and forests.” • African Ministers of Finance, Planning and Economic Development, Ministerial Statement, 4th Joint Annual Meetings of the AU Conference of Ministers of Economy and Finance and ECA Conference of Ministers of Finance, Planning and Economic Development, Addis Ababa, Ethiopia 28 – 29 March 2011: “We will play our part to spearhead the transition to a green economy in Africa, inter alia, by supporting the necessary systemic and institutional transformations to ensure that green economies contribute to sustainable development and poverty reduction objectives, including improving welfare and the quality of life of Africa’s citizens. We call on all development partners to accompany Africa in this journey” Afeikhena Jerome AEC 2011

8. Africa and the Green Economy • Commendably, Kenya introduced a feed-in tariff on electricity from wind, biomass and small hydropower in 2008, and extended the policy in 2010 to include geothermal, biogas and solar energy resource-generated electricity. • World-wide, close to 4,900 CDM projects are up and running or in the pipeline as at March 2010 - with the lion's share in the big developing economies such as Brazil, China and India. So far they have been implemented in about 30 developed countries and in 17 developing countries. • Africa has just over 120 carbon market projects up and running or in the pipeline, in areas ranging from wind power to forestry schemes. Afeikhena Jerome AEC 2011

9. What is to be done? • It is increasingly clear that business as usual in Africa and • around the world is no longer an option: • The Rio+20 Summit which has adopted “green economy” as a key theme in the context of sustainable development and poverty eradication thus offers a real opportunity to scale-up transition under way across this region and embed the concept of green economy in Africa. • African Countries should be assisted to develop Green Economy Plans against the backdrop that governments alone cannot manage and fund the transition to a green economy and that the private sector and civil society could play a fundamental role. • The enabling conditions are presented in the next chart. Afeikhena Jerome AEC 2011

10. What is to be done? Enabling Condition as outlined by UNEP 2011 Afeikhena Jerome AEC 2011

11. Thank you for your attention Email: ajerome@nggovernorsforum.org: ajerome4@hotmail.com Afeikhena Jerome AEC 2011