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“Green Economy Initiative”

“Green Economy Initiative”. Event Location Date Speaker Title UNEP. Outline. Multiple crises Opportunity amidst crisis Rethinking economic recovery: A global green new deal The Green Economy Initiative: A family of initiatives Making the economic case: The Green Economy Report

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“Green Economy Initiative”

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  1. “Green Economy Initiative” Event Location Date Speaker Title UNEP

  2. Outline Multiple crises Opportunity amidst crisis Rethinking economic recovery: A global green new deal The Green Economy Initiative: A family of initiatives Making the economic case: The Green Economy Report Engaging global policy processes Fostering global consensus on green economy Supporting regional initiatives on green economy Country technical assistance and advisory services

  3. A Global Crisis with Multiple Dimensions and Implications

  4. Fuel and food crises - 950 million people worldwide at risk of hunger and malnutrition Multiple Crises Financial crisis - threatening jobs worldwide & poverty reduction gains Climate crisis – exacerbating the others

  5. The Economic Crisis and Employment 200 million jobs lost between 2007 and 2009

  6. The Economic Crisis and Development • Decrease of trade and investment –exports are shrinking. • ODA contraction: • Slow growth: Every 1 per cent fall in growth in developing countries will translate into an additional 20 million people consigned to poverty (WB). • Reduced provision of basic needs, health care and education

  7. Global economic growth in past 50 years accompanied by accelerated environmental decline 1981 – 2005: global GDP more than doubled, but 60% of world’s ecosystems degraded/exploited unsustainably Continued Environmental Neglect

  8. Potential for substantial investments in a green economy Opportunity Amidst Crisis Opportunity as governments jump start economies

  9. Rethinking the Economic Recovery: A 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 Eliminate persistent poverty by 2015…. achieve the MDG’s From : Edward B. Barbier, “A Global Green New Deal”, UNEP, Feb 2009

  10. Global Green New Deal Rationale Fiscal stimulus agreed as the way forward, but how sustainable is the recovery ? “Green Investment” beats a “Shopping Spree” “Win-Win-Win” solutions exist : Decent Jobs, Lower Risks, Higher Returns Globalization is a fact : success lies in globally coordinated action .. “A crisis is a terrible thing to waste” : Seeding the “Green Economy”

  11. Opportunity as Governments Jump Start Economies: Green stimulus packages source: HSCB 2009, CIA factbook

  12. Investing in Renewable Energy

  13. Global Green New Deal Components Inernational Policy Architecture International Trade International Aid Global Carbon Market Global Markets for Ecosystems Services Development and Transfer of Technology GGND International Coordination Domestic Policy Initiatives Perverse Subsidies Incentives & Taxes Land Use and Urban Policy Integrated Management of Freshwater Environmental Legislation Monitoring and Accountability • Fiscal Stimulus in 2009-2010 • Energy Efficient Buildings • Sustainable Transport • Sustainable Energy • Agriculture and Freshwater

  14. Green Economy: Key Questions • What is the potential for environmental industries to become drivers of future economic growth? • What financial, policy and institutional barriers currently inhibit a shift towards a green economy? • What national experiences currently exist?

  15. The Green Economy Initiative (GEI) To achieve significant progress in addressing global environmental priorities by the end of 2010 by: • making a strong & credible macroeconomic case for massive green investments worldwide • offering workable solutions to remove financial, policy, institutional, & market constraints on making such investments

  16. The Green Economy Initiative: A family of initiatives… 16 Green Economy Report • GGND investment, education & training, metrics for green employment growth Demonstrating that Greening is a new engine for growth, sizing sectoral opportunities, addressing hurdles & enabling conditions • Evaluating Ecological Infrastructure • Evaluating Biodiversity Business TEEB Green Jobs Demonstrating the value of ecosystems & biodiversity, capturing these values, and reversing the vicious cycle of environmental losses and persistent poverty Sizing and incentivizing growth in green & decent jobs • Decent jobs from Community-based Conservation, PES/ IPES implementation,

  17. … under a Wide Global Network UNSD UNECE UNCEB UNDESA UNSCD UNEP G8+5 ILO UNDP ITC Business & Civil Society Groups Multilateral Institutions Universities Regional Forums Countries UNEP ETB

  18. Green Economy Reports A report on a Global Green New Deal proposing key elements of a global policy response to economic crisis An in-depth review of the state and prospect of key green sectors and specific policy recommendations

  19. Green Jobs In September 2008, UNEP- ILO launched a report showing: Investments to reduce climate change and its effects are generating new jobs Next phase: country studies

  20. Green Jobs “Where capital flows today, jobs follow tomorrow” What are the key sectors at risk ? What are the key sectors of opportunity ? And the net change in FTE’s for each ? How does ‘greening’ impact employment ? “Green Jobs Report”, September 2008

  21. Globally, > 2.3 million workers employed in renewables; by 2030, could be 20 million jobs Greening buildings in EU & US would create 2 million jobs In China, 10 million jobs in the recycling sector Green Jobs The Report found that:

  22. Green Jobs

  23. The Economics of Ecosystems and Biodiversity (TEEB) • To motivate actions to significantly reduce biodiversity loss by 2010 • Results to feed into Green Economy Reports

  24. TEEB – Interim ReportThree Key Messages Economic Size & Welfare Impact of Losses is huge Strong link with Poverty & risk of MDG’s failure Discount rates are ethical choices

  25. TEEB – Interim Report“From Economics to Policies” 25 Rethink todays subsidies to meet tomorrow’s priorities Reward unrecognized benefits, penalize Uncaptured costs Share the benefits of conservation Measure what we Manage !

  26. TEEB II Deliverables • A global valuation study providing conceptual background for guidance documents; • A guidance report for international and national policymakers; • A guidance report for regional and local administrators; • A guidance report for business and industry; • A guidance report for consumers.

  27. Making the Economic Case: The Green Economy Report The objective of the Green Economy Report is to make and communicate a strong and convincing economic case for greening economies and creating decent green jobs by investing in a new generation of assets (social, natural, human, and financial).

  28. A “green economy” is not … …One which undermines natural capital.. ….Or risks human survival ... ‘Ecological Footprint’ already exceeds Earth’s regenerative capacity… our demands on the planet have doubled over the last 40 years… Global GHG Emissions at 42 GtCO2e per annum are 5 times higher than the Earth can absorb … UNEP ETB

  29. Green Economy Report…. and its offshoots GGND : A Policy Brief Enabling Conditions - Finance • Subsidies • Markets Regional / Country Reports Regional / Country Reports UNEP ETB

  30. The UNEP Global Green New Deal Following Roosevelt’s strategy in the 30s, advocacy for a green revolution. Initialized in 2008 by the UNEP, the GGND was a key document of the 2009 G20 in London. « Jump-starting the transition to a green economy” International components : Urgent reforms to international architecture.

  31. The UNEP Global Green New Deal National Components : Green priorities for fiscal spending, and reforms to national architecture Optimizing “quick wins” and “sustainable returns to investment” objectives in stimulus packages Addressing both Developed World and Developing World circumstances Avoiding past mistakes of capital mis-allocation.

  32. The Green Economy Report, Overview The GER is an in-depth sectoral analysis of the economic and social potential impact of green investments resulting from green stimulus packages. Targets: Decision makers, government officials, business executives, researchers and representatives of civil society organizations.

  33. GER – Operational Framework Open architecture, end-user targeted, dialogue-based, inclusive… UNEP Green Economy Team Technical Advisory & Coordination Team (TACT) Global Green New Deal Report Project Implementation & Communications Team (PICT) Note : Each Chapter has a “Writing Team” composed of the chapter authors, contributors and Other experts and stakeholders from government, international institutions, business and civil society

  34. Investing in Green Sectors Renewable energy Clean tech : materials & energy efficiency Low carbon cities , buildings & transport Waste management & mitigation Ecological infrastructure Biodiversity-based businesses

  35. Sustainable Cities Cities are polluted, crowded and complex to manage. Delivering the smart city: The GER will a guidance plan for mayors to improve sustainability and growth in cities.

  36. Green Buildings • Energy efficient buildings: Investments in improved energy efficient buildings = 2-3.5m jobs in Europe & USA. • InAustralia a proposed US$ 3b green housing over 4 years is expected to reduce green house gas emissions by 3.8mtons/year = 160,000 jobs • In the US it is estimated that US$ 100b to improve energy efficiency of building & cities over 4 years will generate 2m new jobs.

  37. Sustainable Transport ● Shifting 25% of all air travel in 2050 under 750 km to high speed rail travel would result in savings of around .5 GT of CO2/year (IEA, ‘08) ● Shifting 25% of all road freight over 500 km to rail, .4 Gt of CO2/year could be saved (IEA, ‘08).

  38. Renewable Energy About 2.3 million jobs in renewable energy sector in comparison to 2 m employed in oil & gas refining industry in ’99. Projected investments of US$ 630b in renewable energy sector by 2030 would translate into at least 20 m jobs.

  39. Renewable energy: case study China: RE sector generates output worth US $ 17 bill & employs 1 mill. Nigeria: a biofuels industry based on casava & sugar can provide 200,000 jobs India: 900,00 jobs could be created in the biomass gasification by 2025 Bangladesh: At least 20,000 jobs have been created with the uptake of 3 renewable energy technologies (PV solar home systems biogas facilities, & improved cooking stoves)

  40. Water ●Market for water supply, sanitation,& water efficiency estimated at US$ 253 bn & is expected to grow to US$ 658 bn by 2020. ● Estimated Investment of USD 15 bn per annum. ● This could generate USD 38 billion (with 15 bn in sub-Saharan Africa).

  41. Sustainable Agriculture Organic agriculture sustains health of soils, ecosystems & people Provides more than 30% more jobs/ha than non-organic China has increased its allocation of land for organic prod from 300,000 ha in ‘05 to 3.5 mill ha in ’06 In Ethiopia alone, 6 bn is being invested in land management during a period of 15 years.

  42. Forests • Many communities directly depend for their livelihoods on non timber forest products. • Sustainable forest management can: • create massive employment, provide for livelihoods, • make a significant contribution to the fight against climate change, • combat desertification and land degradation.

  43. Engaging Global Policy Processes Green economy presence at strategic policy junctures: Sessions of the Commission on Sustainable Development UN Conference on the World Financial and Economic and its Impact on Development in New York (June 2009) G8 Summit 2009 in Italy (July 2009) ECOSOC Substantive Session in Geneva (July 2009) World Climate Conference 3 in Geneva (August-September 2009) Global Renewable Energy Forum in Mexico (October 2009) UNEP Finance Initiative 2009 Global Roundtable in Cape Town (October 2009) UNFCCC COP 15 and Kyoto Protocol MOP 5in Copenhagen (December 2009) International Association for Impact Assessment 2010 meeting in Geneva (April 2010) among other targeted events. Ect…

  44. Fostering a Global Consensus on Green Economy Engaging governments on an global policy document on Green Economy, modelled on the “IPCC Synthesis Report” Objective of adoption of the policy document at the UNEP Governing Council/Global Ministerial Environment Forum in 2011

  45. Supporting Regional Initiatives on Green Economy Regional initiative for “East Asia Low Carbon Green Growth” Regional initiative on Green Economy in West Asia, in collaboration with UNEP ROWA Regional Imitative on Green Economy in Africa, in collaboration with UNEP ROWA

  46. Country Technical Assistance and Advisory Services Korea: UNEP is organizing an independent review of “Korea Green Growth National Vision”. China: UNEP has received a proposal from the Government to support policy research that would feed into China’s national five-year plan. Uruguay: The Government has requested UNEP support in undertaking a green economy initiative.

  47. Two “Green Economy” leaders …. • Mexico • “Green Fund” • combined gov’t/biz vision and implementation • cogeneration • will announce goals for 2012. Going for • stats and research-backed policy change… • they have own ‘Stern Review’ (3x cheaper now vs later)… • “Green Agenda” as growth driver… • Korea • President’s “Green Growth National Vision” of August ‘08 • Jan’09 “Green New Deal” • Significant “Green” components of Fiscal Stimulus Package.. • …..700,000 of 1 mio new jobs • …..$ 28 billion / $ 36 billion total • Cleaning 4 main rivers, Reforestation, Renewables, Buildings… 12.03.2014 48 UNEP ETB

  48. A new Engine for the Economy ? UNEP ETB

  49. More Information UNEP Green Economy Website http://www.unep.org/greeneconomy/

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