Introduction to Green Economy and Sustainable Consumption and Production

1. Introduction to Green Economy and Sustainable Consumption and Production Regional Workshop on Green Economy and Sustainable Consumption and Production � success stories Christophe BouvierUNEP 14-15 April 2011, Belgrade

2. List of Content: Part A: Towards a Green Economy (GE) 1. What is Green Economy? 2. Why Green Economy? 3. UNEP�s Activities 4. Success Stories (EU) 5. Major Opportunities and Challenges 6. Enabling Conditions for a GE Part B: Sustainable Consumption & Production (SCP) 7. Why SCP? � The Resource Crisis 8. The context of SCP in GE 9. UNEP�s Approach 10. Progress in the Pan-European Region 11. Further Questions

3. Part A Towards a Green Economy (GE)

4. 1. What is Green Economy? UNEP defines Green Economy (GE) as one that results in increased human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.

5. 2. Why Green Economy?

6. Continued� 2. Initiative born out of multiple crises and accelerating resource scarcities 3. It is a new economic paradigm that can drive growth of income and jobs, while enhancing environmental assets 4. A Green Economy is an economic vehicle for sustainable development 5. A Green Economy can contribute to poverty reduction

7. 3. UNEP�s Activities 1. Green Economy Initiative Mission is to �Advising clients on Greening their Economies, by working with extensive partnerships of institutions and experts and using a range of research products infused with thought leadership� It links to the following:

8. Continued� 2. Green Economy Report: Key Findings - Investing in natural capital, resource and energy efficiency can lead to the Following: a. Enhanced wealth b. Employment generation c. Improved health for all d. Well-managed natural assests

9. a. Higher rates of GDP growth over time and enhanced wealth This shows how a green economy would stimulate economic growth and actually exceed growth compared to a business as usual scenario over time. Why? Stimulate business, promotes resource efficiency, and maintain natural capital stocks Fisheries example � with BAU fish stocks will decline by 2050 so less economic activity as opposed to Green Economy the stocks are enhanced over the long term. This shows how a green economy would stimulate economic growth and actually exceed growth compared to a business as usual scenario over time. Why? Stimulate business, promotes resource efficiency, and maintain natural capital stocks Fisheries example � with BAU fish stocks will decline by 2050 so less economic activity as opposed to Green Economy the stocks are enhanced over the long term.

10. b. Employment Generation (Global-sectoral) Agriculture - over the next decade, shifting to sustainable agriculture could increase global employment by as much as 4% Forests - forest conservation and reforestation could boost formal employment in this sector by 20% by 2050 Transport - improved energy efficiency across all transport modes combined with shifting to collective modes would increase employment by about 10% above business-as-usual by 2050 Energy - expansion of renewables and investments in energy efficiency could generate employment that is 20% higher than business-as-usual by 2050

11. c. Poverty Reduction Ecosystem services provide 47% to 90% of the so-called �GDP of the Poor�; India, e.g.: Ecosystem services add �only 7.3%� to classical GDP or Ecosystem services add 57 % to �GDP of the Poor� (540 million rural people) Investing in natural capital and wise management of natural resources and ecosystems, therefore results in lifting people out of poverty

12. 4. Success Stories (EU) Buildings in Germany: Investment in building sector Stimulus package estimated to create 25,000 jobs per each 1 billion invested in manufacturing and construction for retrofitting buildings. The government estimated 350,000 jobs to be created by 2050 (UNEP 2009a). Spain�s Investment in Renewables: National Energy Policy (targets) Investment in the renewable energy sector found in Aragon region that the renewable energy industry generates between 1.8 and 4 times more jobs per MW installed than conventional sources (Llera Sastresa et al. 2010). Public transport/cycling in EU & Switzerland: In 13 cities in EU, every �1 invested in public transport provided �2 to �2.5 in benefits. The whole economy benefited from an added value of �4.6 for every �1 spent on public transport In Switzerland, the economy as a whole benefited from an added value of �4.6 for every �1 spent on public transport. in Austria, the Government programmes to encourage cycling has contributed �900 million to the economy and 18,000 jobs  SEE region Cases will be presented tomorrow * A 2007 EU study across 13 cities on Transport, Health and Environment* A 2007 EU study across 13 cities on Transport, Health and Environment

13. 5. Major Opportunities for change 1. GE & Resource Efficiency

14. Continued� 2. GE and the Environment/Climate Change

15. 6. Enabling Conditions for a GE Establish sound regulatory frameworks enshrined in laws Remove harmful subsidies (e.g. fossil fuels, fisheries) Prioritize green investment Utilize market mechanisms and taxation Build capacity through training and technology transfer Roles of sub-national and local authorities

16. Part B Sustainable Consumption and Production (SCP)

18. b. The Face of Consumption and Production 1. CP areas with the most significant environmental impacts across the EU27

19. Continued� 2. An illustration of life cycle energy use of Milk production in UK (excluding disposal)

20. Continued� 3. Macro Trend: GDP, Material Productivity and Domestic Material Consumption in EU (Michal Miedzinski, 2011)

21. Continued�

22. 8. The context of SCP in GE Transition to a Green Economy will be achieved through: Investments and policy measures aimed at improvements in resource efficiency Development of cleaner and low-carbon technologies and markets, and Reduction of environmental risks, while enhancing human well being, fostering green growth and decent job creation

23. 9. UNEP�s Approach In the achievement of this objective UNEP works towards ensuring that: Resource efficiency is increased and pollution and related health cost is reduced over product life cycles and along value chains Investment in efficient, clean and safe industrial production methods is increased through public policies, registration and private sector action Consumer choice favors resource efficient and environmentally friendly products: awareness, education, information

24. 10. Progress in the Pan-European Region a. Overall: Breaking the link between economic growth and resource use and energy consumption (�relative decoupling�) has taken place in many countries. Similar situation for waste generation in EU-27 + EFTA countries (absolute decoupling in EU10) Progress in Eco-innovations

25. Continued� b. Policy/Strategy/Law: SEE Several SEE countries have included SCP as a thematic chapter of their NSSD. (E.g. Croatia (2009), Serbia (2008), FYR of Macedonia (2008)). other specific examples are: Croatia is developing SCP Action Plans under National Strategy for Sustainable Development (NSSD) and has introduced policy package for promoting organic farming: The National Strategy for Sustainable Development (NSSD) of Macedonia (2008). �Strategy of Agricultural Development� in Serbia (Official journal 78/2005) Bosnia & Herzegovina introduced general stipulations on imports, distribution and use of plant protection products * The package includes the creation of a certification scheme for organic food, economic incentives to farmers to take up organic agriculture and information campaigns promoting organic products fro consumers.(UNEP-CRI (Forthcoming) **.Law on Mineral Fertilizers (Official Gazette of BiH, No. 46/04) and Law on Plant Protection Products (Official Gazette of BiH, No.49/04) * The package includes the creation of a certification scheme for organic food, economic incentives to farmers to take up organic agriculture and information campaigns promoting organic products fro consumers.(UNEP-CRI (Forthcoming) **.Law on Mineral Fertilizers (Official Gazette of BiH, No. 46/04) and Law on Plant Protection Products (Official Gazette of BiH, No.49/04)

26. 11. The 10 Year Framework of Programmes on sustainable consumption and production (10YFP) 1. 10YFP is an umbrella for developing and implementing voluntary programs, supporting all stakeholders in achieving vision, goals and objectives of 10YFP. Overarching goal: decouple economic growth from resource use and environmental degradation to support sustainable development. Objectives: catalyze political, technical and financial support; mainstream SCP; incentivize innovation; support developing countries; increase demand for sustainable products; monitor progress to SCP; strengthen the science-policy interface. The impetus for the development of this 10YFP comes from the Johannesburg Plan of Implementation (JPOI) agreed at the World Summit on Sustainable Consumption. The aim is to further develop and then endorse this 10YFP at CSD 19 for subsequent implementation. At CSD18 in May 2010, governments recognised that the 10YFP on SCP could be an important input to Rio+20. The support that such a 10YFP would provide to governments, businesses and civil society in designing and implementing policies and actions promoting a shift to SCP patterns, could help accelerate the transition to a green economy.The impetus for the development of this 10YFP comes from the Johannesburg Plan of Implementation (JPOI) agreed at the World Summit on Sustainable Consumption. The aim is to further develop and then endorse this 10YFP at CSD 19 for subsequent implementation. At CSD18 in May 2010, governments recognised that the 10YFP on SCP could be an important input to Rio+20. The support that such a 10YFP would provide to governments, businesses and civil society in designing and implementing policies and actions promoting a shift to SCP patterns, could help accelerate the transition to a green economy.

27. Continued� 2. Initial Selection of Programs: The CSD 19 could identify a first set of priority programmes, based on the following rationale: Priorities identified by the CSD RIMs as well as recommended by CSD 18, Select sectors or products with the largest environmental impact and resource intensity. (e.g. food, mobility and housing). Priorities contained and recognised within regional strategies, and endorsed by regional fora Programmes stemming from the work of Marrakech Process Task Forces, recognised by CSD 18 as useful building blocks for 10YFP (Public Procurement, Tourism, Products, Education, Sustainable Lifestyles, Cooperation with Africa, Building & Construction).

28. Continued� 3. Outcomes of the Intergovernment Preparatory Meeting for the 19th session (NY, Feb 28 & Mar 4, 2011) of the Commission on Sustainable Development: Key elements of the text being negotiated: Proposed organizational structure summarized under 10 major points: Including a global clearinghouse platform to share information and tools; A mechanism for developing countries to solicit support for their SCP initiatives; A global pact between Governments and relevant stakeholders; A policy strategy Predictable financing: Including realigning existing multilateral and bilateral funding sources, a voluntary trust fund to support the launch of programs. Programs: A toolbox of programs on SCP to lead selected key priorities (20). Suggesting that the 10YFP should include an initial list of programs building on the experiences carried out under the Marrakech Process and other best practices.

29. Continued� Way forward suggested to CSD 19 (NY, May 2011): merge overlapping programs; program proposals developed by UNEP in collaboration with its partners can now be refined and merged with similar existing ones; Additional information to be included in the program proposals could include manifestation of interest with a preliminary list of stakeholders (including governments from developed and developing countries) interested in participating. *Some of the suggested priority programmes in the negotiating text are extremely similar or interlinked and could be merged under broader programme headings *Some of the suggested priority programmes in the negotiating text are extremely similar or interlinked and could be merged under broader programme headings

30. Discussion points Possible discussion on messages from this workshop to CSD-19 from a SEE perspective ? (in a EU Accession/pre-accession context) Enabling conditions for Green Economy specific to the region, e.g. EU incentive legal framework Possible regional actions?

31. Thank you!