How can Research best Inform the Transition to a Green Economy?

Patrick ten Brink

Senior Fellow, Head of Brussels Office, IEEP

Presentation at event on ‘EU Research towards Rio+20: Lessons from projects on the Green Economy’

12:00 to 13:00 18 June 2012, Rio de Janeiro

KNOSSOS policy briefings on green economy

Main briefing:

What do we mean by green economy?

Supporting briefings:

• Green economy in the EU;

• Green economy in the context of Rio+20;

• Green economy and sustainable development

By: Doreen Fedrigo-Fazio, Patrick ten Brink, Leonardo Mazza, Sirini Withana, Emma Watkins, Axel Volkery, Sonia Rouabhi (IEEP)

Green economy in context

• Green economy is not a new concept. It builds on discussions over last 40 years

• 1970s-1980s: meeting needs within environmental limits, ecological modernisation (links between environment and economy)

• 1990s: sustainable development, three pillar approach

• 2000s: sustainability, growth, competitiveness, jobs

• However problems remain and recent crises (economic, financial, environmental, social) have reinvigorated the discussion since 2008

What is a green economy?

“fostering economic growth and development, while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies”.

(OECD Green Growth Strategy)

“one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. In its simplest expression, a green economy can be thought of as one which is low

carbon, resource efficient and socially inclusive.”

(UNEP Green Economy Report)

Go

od

Go

vern

ance

Current Situation

Declining Sustainability in a Brown Economy

Resource over-exploitation & pollution pressures

Climate Change

Biodiversity and natural capital loss

Critical ecological and resource thresholds passed

or at risk

Resource scarcity and limited access to a clean

environment

Health impacts and man-made natural disasters

An economy that is not resource efficient, low carbon

and socially inclusive

Ambitions for the Future

A Green Economy

Improved human well-being and social equity, while significantly

reducing environmental risks and ecological scarcities

Staying within a ‘safe operating space’: using resources within the planet’s regenerative capacities &

avoiding critical ecological thresholds

No net loss of biodiversity and climate change within ‘acceptable’

limits

Sustainability for future generations and business:

available natural capital and a clean environment

Health and livelihoods for citizens and communities

An economy decoupled from environmental impacts and

resource use

Building Blocks in the

Transition to a Green Economy

Business-as-Usual

Approaches

Avoiding Unsustainable Trade-offs

+ Environmental compliance &

infrastructure

Active environmental

management Active Risk Management

+

Proactive Investment in Natural Capital

Pursuing environmental

sustainability Eco-efficiency

+ Decoupling via Radical

Innovation & Demand change

+

+

Source: Patrick ten Brink & Leonardo Mazza, own representation

The Transition to a Green Economy

ACQWA project

• Quantify influence of climate change on water resources in mountain regions and analyse impacts on society and economy

• Case study: • Climate change and evolution of land use in Spanish Pyrenees has

affected availability and management of water resources in Ebro basin. • Need improved management especially given anticipated water

scarcity and subsequent conflicts among water users

COMETR

• Review experience with carbon-energy taxes in SE, DK, NL, FI, SL, DE, UK.

• Scenario results show reductions in GHGs in 6 MS (FI, SE, DE, NL, UK, DK), largest reductions where tax rates highest (FI, SE)

• Environmental tax reform (ETR) has positive on economic activity depending on how revenues are recycled. However, likely to be transition costs so gains may not be immediate.

• 5 MS show increase in GDP as a result of ETR (FI, SE, DE, NL, DK)

INSTREAM

• Propose indicators – including natural capital and SEEA accounts - to assess progress on economy, well-being, environment, long-term sustainability

• Use indicators to support integration in various policy areas

• Use range of indicators across policy areas and at different stages in policy cycle

Invest in natural capital and environmental-economic accounts to have the evidence for the future

What next?

• Invest in research and build the evidence base

• Build on lessons from research – for each of the buildings blocks for the transition to a green economy.

• Evidence underlines importance of (inter alia):

– Risk mapping and proactive risk management

– Environmental Fiscal Reform (environmentally harmful subsidies, environmental tax reform, positive incentives etc.)

– Environmental accounts: water, resources, natural capital and SEEA – and associated indicators/information base.

• Need a community of learning for a green economy

• Need active science-policy interface

Panel Questions

Q1: What research insights do you know of that give a valuable new evidence base to inform the transition to a green economy?

Q2: What are they key gaps in the evidence base and which of these should be prioritised for research effort?

Q3: Who can most usefully do the research – and what is the need for global cooperation?

Thank you for your attention

Patrick ten Brink

Senior Fellow and Head of Environmental Economics Programme, IEEP ptenbrink@ieep.eu

Thanks also to IEEP’s Sirini Withana and Doreen Fedrigo-Fazio

IEEP is an independent not for profit institute dedicated to advancing an environmentally sustainable

Europe through policy analysis, development and dissemination. For further information see: http://www.ieep.eu

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