1

“Green Economy Initiative”

EventLocation

Date

SpeakerTitleUNEP

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

A Global Crisis with Multiple Dimensions and Implications

Fuel and food crises - 950 million people worldwide at risk of hunger and malnutrition

Financial crisis - threatening jobs worldwide & poverty reduction gains

Multiple Crises

Climate crisis – exacerbating the others

The Economic Crisis and Employment

200 million jobs lost between 2007 and 2009

The Economic Crisis and Development

Continued Environmental Neglect

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

Opportunity as governments jump start economies

Opportunity Amidst Crisis

Potential for substantial investments in a green economy

Rethinking the Economic Recovery: A global Green New Deal

From : Edward B. Barbier,

“A Global Green New Deal”,

UNEP, Feb 2009

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”

Opportunity as Governments Jump Start Economies: Green stimulus packages

Country Stimulus USbn

Stimulus as % of GDP/GNI

Green Fund Usbn

% of Green stimulus

Green stimulus as % ofGDP

Australia 26.7 2.49 2.5 9% 0.2

China 586.1 13.88 221.3 38% 5.2

Japan 485.9 10.03 12.4 3% 0.3

Korea, Rep 38.1 4.44 30.7 81% 3.6

France 33.7 1.12 7.1 21% 0.2

Germany 104.8 2.74 13.8 13% 0.4

UK 30.4 1.09 2.1 7% 0.1

US ARRA 787 5.27 94.1 12% 0.6

US EESA 185 1.29 18.2 10% 0.1

Canada 31.8 2.03 2.6 8% 0.2

source: HSCB 2009, CIA factbook

Investing in Renewable Energy

Global Green Stimuli Packages Spending in the Energy Sector

Building EE15%

Grid21%

Low Carbon Vehicles4%

Rail26%

Renewable Power9%Non-Energy

25%

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

• 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?

Green Economy: Key Questions

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

The Green Economy Initiative (GEI)

Demonstrating that Greening is a new engine

for growth, sizing sectoral opportunities, addressing hurdles & enabling conditions

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

Green Economy Report

TEEBGreen Jobs

The Green Economy Initiative: A family of initiatives…

Eva

luat

ing

Eco

logi

cal

Infr

astr

uctu

re

Eva

luat

ing

Bio

dive

rsity

Bus

ines

s

GGN

D investm

ent,

education & training,

metrics for green

employm

ent growth

Decent jobs from Community-based

Conservation, PES/ IPES implementation,

16

18.04.23 UNEP ETB17

UNDP

UNEP

ILODemonstrating that Greening is a new engine for growth,

sizing sectoral opportunities, addressing hurdles & enabling conditions

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

Green Economy Report

TEEB Green Jobs

ITC

G8+5

Multilateral

InstitutionsCountriesRegional

Forums

Business

& Civil Society

GroupsUniversities

… under a Wide Global Network

UNSDUNECEUNCEBUNDESAUNSCD

Green Economy Reports

1. A report on a Global Green New Deal proposing key elements of a global policy response to economic crisis

2. An in-depth review of the state and prospect of key green sectors and specific policy recommendations

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

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

Green Jobs

The Report found that:

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

CountryRenewable Energy

Building Retrofits

Transport Sust. AgrEcological Infrast

Australia 160,000

China 1 million

Colombia

170,000

EU 1 to 2 m 900,000

Nigeria700,000-

1 m

S. Korea 3.5 m 334,000 350,000

Thailand 182,000

UK 160.000

USA 2 million 367, 000

The Economics of Ecosystems and Biodiversity

(TEEB)

To motivate actions to significantly reduce biodiversity loss by 2010

Results to feed into Green Economy Reports

TEEB – Interim ReportThree Key Messages

Economic Size & Welfare Impact of Losses is huge

Strong link withPoverty & risk ofMDG’s failure

Discount ratesare ethical choices

Rethink todays subsidies to meet tomorrow’s priorities

Reward unrecognized benefits, penalize Uncaptured costs

Share the benefits ofconservation

Measure what we Manage !

TEEB – Interim Report“From Economics to Policies”

25

TEEB II Deliverables

1. A global valuation study providing conceptual background for guidance documents;

2. A guidance report for international and national policymakers;

3. A guidance report for regional and local administrators;

4. A guidance report for business and industry;

5. A guidance report for consumers.

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).

18.04.23 UNEP ETB28

A “green economy” is not …

‘ 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 …

…One which undermines natural capital..….Or risks human survival ...

18.04.23

UNEP ETB

Enabling Conditions

- Finance- Subsidies- Markets

-

Green Economy Report…. and its offshoots

GGND : A Policy Brief

Regional / Country Reports

Regional / Country Reports

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.

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.

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.

GER – Operational Framework

Open architecture, end-user targeted, dialogue-based, inclusive…

Policy Context:Policy Context:Multiple crises

Climate ChangePoverty

Core policy principles underlying a Green Economy

Sustainable Sustainable citiescities

Clean Clean technology technology and material and material

efficiencyefficiency

BuildingsBuildings

TransportTransport Renewable Renewable EnergyEnergy

WasteWaste Ecosystems Ecosystems and and

ecological ecological infrastructurinfrastructur

ee

WaterWater

ForestForest AgricultureAgriculture Enabling Enabling Conditions Conditions (domestic (domestic and int’l)and int’l)

Policy Policy recom-recom-

mendationsmendations

Impact Impact assessmentassessment

Global

Green

New

Deal Report

Technical Advisory & Coordination Team (TACT)

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

UNEP Green Economy Team

Investing in Green Sectors

Renewable energy

Clean tech : materials & energy

efficiency

Low carbon cities , buildings & transport

Waste management & mitigation

Ecological infrastructure

Biodiversity-based businesses

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.

Green Buildings

Energy efficient buildings: Investments in improved energy efficient buildings = 2-3.5m jobs in Europe & USA.

In Australia 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.

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).

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.

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)

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).

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.

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.

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…

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

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

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.

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…

18.04.23 UNEP ETB48

18.04.23 UNEP ETB49

A new Engine for the Economy ?

UNEP Green Economy Website

http://www.unep.org/greeneconomy/

More Information