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What is a Green Economy?

What is a Green Economy?. A Green Economy is one that results in increased human well-being & social equity , while significantly reducing environmental risks & ecological scarcities. In Other Words….

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What is a Green Economy?

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  1. What is a Green Economy? A Green Economy is one that results in increased human well-being & social equity, while significantly reducing environmental risks & ecological scarcities.

  2. In Other Words… A Green Economy is one whose growth of income and jobs is driven by investments that reduce carbon emissions and pollution, enhance efficiency and sustain biodiversity and ecosystem services.

  3. Why a Green Economy? • It was born out of multiple crises and accelerating resource scarcity. • A Green Economy is the economic vehicle for sustainable development. • A Green Economy has strategies to end the persistence of poverty. • It is a new economic paradigm that can drive growth of income and jobs, without creating environmental risk.

  4. Asia – Pacific: 23% of global green stimulus investments, originated in this region China: investing US$ 468 billion in greening key sectors by 2015; >double past five years. Indonesia: national development plan has a goal of a “green and everlasting Indonesia” by 2025. 7-41 target. (7% GDP increase; 41% GHG reduction by 2030) Japan: 3R and waste minimisation policy Republic of Korea: Green New Deal policy. 2% of GDP invested in Green Growth. Green Economy in Action

  5. UNEP’s Green Economy Report Investing or reallocating just 2% of global GDP in 10 key sectors can kick-start a transition to a low-carbon, resource-efficient economy.

  6. BAU vs. a Green Scenario Green Scenario 2 % of GDP or 1.3 trillion USD per year invested in greening 10 key sectors from 2010-2050. Policies adopted to help reduce harmful CO2 emissions and subsidies, and incentives created to increase investments, i.e., in natural capital and energy efficiency. Business as Usual Current trends assumed to continue with 2% of GDP per year allocated in a BAU across 10 key sectors from 2010-2050. Policies continue to support investment in non-green infrastructure, harmful fossil fuel and fishing subsidies, etc.

  7. Key Findings Investing in natural capital, resource and energy efficiency can lead to: • Higher rates of GDP growth over time and enhanced wealth • Natural capital stocks • Reduced poverty • Decent employment

  8. … outperform BAU …create employment GREEN ECONOMY can… …alleviate poverty … ensure economic growth Results by 2050 … While preserving NATURAL CAPITAL

  9. Examples: Green Employment • Agriculture: Over the next decade, global employment could increase by as much as 4%. • Forests: Forest conservation and reforestation could boost formal employment by 20% by 2050. • Transport: Improved energy efficiency across all transport modes combined with modal shift would increase employment by about 10% above business as usual. • Energy: employment that is 20% higher than business as usual by 2050, while delivering robust economic growth and reduced emissions.

  10. Example: Energy Sector

  11. Prioritize green investments Regulatory frameworks Capacity-building, Training Taxation, Smart market mechanisms International Governance Enabling Conditions Innovative and imaginative public policies create incentives for markets and direct private sector investment.

  12. Financing • Investments in the range of $1.3 trillion year are less than 1/10 of total investment in physical capital. • Investment in green sectors is growing: • Investments in clean energy of $180-200 billion in 2010, are up from $162 in 2009 and $173 in 2008. • Importance of smart public policy to leverage private capital. • Need for innovative mechanisms

  13. Key Finding: A Green Economy Stimulates Growth & Exceeds BAU Over Time… GDP growth (%)

  14. …while Reducing Ecological Scarcities & Environmental Risks

  15. Success Stories • Organic Agriculture in Cuba • A public oprganic agriculture program in Cuba resulted in 350,000 new well-paying jobs, 4 million tons of organic fruits and vegetables produced annually in Havana (up tenfold in a decade) and a city of 2.2 million agriculturally self-sufficient inhabitants.

  16. Success Stories • Renewable Energy in China • Only in 2009 RE investments resulted in 300.000 new jobs • The additional generating capacity from wind power has exhibited an annual growth rate of more than 100% from 2005 to 2009 • More than 10 per cent of Chinese households rely on the sun to heat their water

  17. Success Stories • Rural ecological infrastructure in India • India’s National Rural Employment Guarantee Act (NREGA) is a guaranteed wage employment programme. • Water conservation accounts for about half of the total projects supported under NREGA, with 850,000 water conservation works funded and completed from 2006 to 2008!

  18. Towards a Green Economy • Economic growth, social development and environmental sustainability can be mutually compatible • Not a single «recipe» for all countries but financing is the key

  19. Thank you!

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