Green Economy and BRICS

1. Green Economy and BRICS Olga Ponizova, Eco-Accord, Russia oponizova@rambler.ru

2. Topics: • To share thoughts on green economy and its importance for BRICS; • To share thoughts on climate change process and BRICS; • To suggests ways of cooperation among BRICS countries on Green Economy, in particular on Climate Change and Low-Carbon Economy.

3. Brazil, Russia, India, China and South Africa = BRICS • Rapid economic development • Geographical and demographic importance • Old civilisations • Necessity for development and poverty eradication • Rich natures

4. BRICS and global stability: • Sourse; Bobylev, MSU

5. Green Economy: No officially agreed definition; UNEP: Green economy as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. In its simplest expression.

6. Features: * low-carbon energy (especially renewable energy and resource of energy efficient technologies); • sustainable water supply systems, water and sanitation, and waste management; • sustainable production of food (organic, biodynamic farming and sustainable practices for livestock) • the conservation and sustainable use of biodiversity; • sustainable transport system, with an emphasis on public transport, planting the automotive industry; •sustainable tourism; • green jobs, sustainable lifestyles and livelihoods that provide social justice and equality and establish concrete measures in order to progress and prosperity; • Reforming International Environmental Governance: global policy and economic nstitutions

7. Tools: • - Appropriate pricing , including phase-out of inefficient subsidy, assessment of natural resources in monetary terms and the introduction of taxes that harm the environment; • - Public procurement policies that encourage the production of environmentally friendly products and use of the principles of sustainable production methods; • - Reforming the system of "environmental" tax, involving a shift from taxes on labor to taxes on pollution; • - Increase public investment s in infrastructure, based on SD principles (including public transport, renewable energy, energy-efficient buildings) and natural capital to restore, maintain and, where possible, increase the volume of natural capital; • - Targeted government support for research and development related to the creation of environmentally sound technologies; • - Social policies to ensure consistency between the goals in the social field and the existing or proposed economic policies.

8. International Context: • February, 2009. - 25th Session of the UNEP Governing Council / Global Ministerial Environment Forum - green economy report. • April, 2009. -UN Communique on nine joint initiatives to tackle the crisis, one of which was the initiative of the green economy. • June, 2009. – Green Growth Declaration (OECD). • June, 2009. - More than 20 UN Agencies mentioned green economy at the UN Conference on Global Economic and Financial Crisis and Development • September, 2009. - UNEP report to G20 in Pittsburg • December, 2009. UN GA decision on Rio +20 * 2010 – G20 in Toronto • 2010 - ESCAP meeting • 2011 - UN ECE meeting * 2012 – Rio+20

9. BRICS Leaders Meeting DeclarationSanya, China, 14 April 2011 III. New proposals to explore 3. Explore the feasibility to cooperate in the field of green economy.

10. Green Economy Benefits, UNEP: • stimulate economic progress • new jobs • at the same time reducing the risks of global threats such as climate change, loss of ecosystem services and water scarcity. • In the short term "green economy" is able to provide GDP growth, increasing per capita income and employment in the same or even higher rates than the traditional "brown" economy. • In the medium to long term "green economy" will overtake "brown" and also give much greater benefits for the environment and reduce social inequality.

11. Green Economy: financing • For the 2012-2050 years. only 2% of global GDP should be invested in ten key sectors: agriculture, housing and utilities, energy, fisheries, forestry, industry, tourism, transport, disposal and recycling of waste and water management. • Wise financial policy

12. Green Economy risks/concerns • Green protectionism (wind power, aviation, carbon taxes); • Lack of Social Inclusiveness (e.g. no new jobs or “dirty” jobs; • The concept will be used as pure environmental; • The same approach for different countries, without specific situation.

13. Good practice: • Renewable Energy in China • Sustainable urban planning in Brazil • Rural ecological infrastructure in India http://www.unep.org/greeneconomy/SuccessStories/tabid/29863/Default.aspx

14. Green Economy: Obstacles • Lack of awareness on the GE concept; • Lack of proper understanding of • Lack of capacity to implement the concept in full; • Difficulties to • International economic rules don’t often promote GE concept (WTO)

15. Possibilities of cooperation: • Common actions again green-protectionism; • Common position at the international fora (WTO etc.); • Research on cost and benefit of GE for BRICS and “feasibility to cooperate in the field of green economy” – new BRICS TERN initiative? • Exchange of experience, among different stakeholders - governments, civil society groups, farmers, business(BRICS Green Economy Forum?) • Technological cooperation.

16. Share of Countries in CO2 emissions

17. Under UNFCC: Only Russia is included in Annex 1. China - will endeavor to lower its carbon dioxide emissions per unit of GDP by 40-45% by 2020 compared to the 2005 level, increase the share of non-fossil fuels in primary energy consumption to around 15% by 2020 and increase forest coverage by 40 million hectares and forest stock volume by 1.3 billion cubic meters by 2020 from the 2005 levels. South Africa – 34% below BAU 2020; conditional 42% BAU by 2020 India - will endeavour to reduce the emissions intensity of its GOP by 20-25% by 2020 in comparison to the 2005 level. Brazil -36.1-38.9% of projected emissions by 2020 Russia - 15-25 %/1990/2020, the range of the GHG emission reductions will depend on the following conditions:- Appropriate accounting of the potential of Russia’s forestry in frame of contribution in meeting the obligations of the anthropogenic emissions reduction;- Undertaking by all major emitters the legally binding obligations to reduce anthropogenic GHG emissions.

18. Some developments in India and Brazil: Brazilhasestablished a stockexchangeforvoluntarycarbon • unitswhichmayprecede adomestic tradingscheme; • Rio deJaneiro, Brazil’ssecondricheststate, recently • announcedtolaunchanETS foritslargestemittersbetween 2013 and2015. • Indiahasnotshownmuchpropensityfor a domestic • ETS duebothtopoliticalandinstitutionalreasons; • However, tradingschemesforenergyefficiencyand • renewableenergyarealreadyinplace.

19. Some development in China: • Chinahasmadeconcretestepstowardsthecreationofregional ETS invariouscitiesandprovinces. Newerannouncementsevenenvisagethecreationof a nationalsystemby 2015. • However, theseplansarestillatearlystages, anddifferwidelyintheirinstitutionaldesigns.Forexample, - Guangdongislikelytoputinplace a tradingsystembasedonabsoluteemissioncaps, - TianjinandBeijinghaveindicatedthattheirtradingschemesmightbebasedonenergysavingcredits. • However, theimplementationpathwayisasyetunclear. Thequestionisinparticularhowtheverydiversedesignchoicesoftheenvisagedpilotschemesaretobealignedtoform a convergentsystemonsuchshortnotice.

20. Possible cooperation on carbon market-based–mechanisms development -exchange of experience;- joint research and analytical work; - capacity building;- seminars and conferences.The project could contribute to the new global CC agreement and reduce risks for “carbon protectionism” from EU and other countries with ETS.

21. BRICS Leaders Meeting DeclarationSanya, China, 14 April 2011 • 22. We support the Cancun Agreements and are ready to make concerted efforts with the rest of the international community to bring a successful conclusion to the negotiations at the Durban Conference applying the mandate of the Bali Roadmap and in line with the principle of equity and common but differentiated responsibilities. We commit ourselves to work towards a comprehensive, balanced and binding outcome to strengthen the implementation of the UNFCC and its Kyoto Protocol. The BRICS will intensify cooperation on the Durban conference. We will enhance our practical cooperation in adapting our economy and society to climate change. • 8. We support the development and use of renewable energy resources. ..We are convinced of the importance of cooperation and information exchange in the field of development of renewable energy resources.

22. Possible BRICS cooperation: • Common position on climate change negotiations reflecting reality and SD approach; • Research, e.g.economicscnario of emissions reduction; • Exchange of experience of different stakeholders; • Technology cooperation; • Concrete projects (carbon market-based–mechanisms development)