Transcript Lessons and Good Practices in Formulating Green Economy

Green economy strategies and
implementation plan in
developing countries: The case
of Ethiopia
Alemu Mekonnen
Department of Economics at Addis Ababa University and EfD
Ethiopia at Ethiopian Development Research Institute
Prepared for
Development Talks on “After Rio+20: Next steps towards inclusive green growth”,
organized by Sida
17 September 2012, Stockholm
Introduction
• Ethiopia one of the three fastest growing
economies in Africa recently (AfDB 2012)
• Annual growth 11-14.9% until 2015 (Ethiopia’s
Growth and Transformation Plan (GTP) 2010/112014/15)
• => May not be sustainable if environmental and
social issues not addressed
Ethiopia active on climate change
– Involvement in global climate negotiations
and committees
– Plans/programs/documents at national level:
1st National Communications, NAPA, NAMA
– Green economy (GE) strategy launched in
2011 - part of Climate Resilient Green
Economy strategy
GE strategy process
• Preparation of GE Strategy started in 2010; help from
international & national consultants
• Inter-ministerial committee provided guidance to a
technical committee (7 sub-technical committees)
• +20 government institutions represented, +50 experts
• 7 sectors selected: power, buildings & cities, forestry,
agric. /soil based emissions, livestock, transport &
industry
GE strategy process (2)
• 60 prioritized GE initiatives
• Prioritization Criteria :
– relevance, feasibility for local implementation;
– contribution to reach targets of GTP;
– abatement potential at reasonable cost for the
respective sectors
• Regional, sectoral consultations; Structure of
permanent institutional setup
GE strategy based on 4 pillars:
1. Improved crop and livestock production,
and reduced emissions
2. Protect & re-establish forests
3. Expand electricity generation from
renewables
4. Leapfrog to modern, energy-efficient
technologies in transport, industry &
buildings
The work done
 Identification of current & projected GHG
emissions under business as usual (BAU)
scenarios until 2030,
 Identification of drivers and abatement levers in
the 7 sectors,
 Estimation of mitigation costs, identification of
financial needs and ways of financing these,
 The way forward
Projections:
Sectoral shares (%)
Sector
2010
2025
Agriculture 42
29
Industry
13
32
Services
45
39
Rapid increase
in GHG emissions
- if nothing done
Sectoral distribution (Mt of CO2e)
185
Agriculture (4.4%)
Forestry (2.6%)
Industry (15.7%)
90
Transport (11.2%)
75
70
Buildings (3.9%)
55
5
5
5
5
40
10
5
Power (0%)
2010
2030
Sector
Main abatement measures
Forestry
Improved stoves (Fuel wood, LPG, biogas, electric), sustainable forest
management, Reduced Emissions from Deforestation and forest Degradation
(REDD)
Agriculture
Livestock: Value chain efficiency, diversification of animal mix, mechanization
and pastureland improvement
Crops: low emitting and yield increasing techniques and irrigation
Industry
Biomass (agri-residues), energy efficient equipment, waste heat recovery
Transport
Electric rail, fuel efficiency standards, hybrid and electric vehicles; mixing
ethanol and biodiesel
Buildings
High-efficiency lighting, landfill gas management; improved liquid waste
management
Power
Clean power production and export
Costs and financing
• Abatement costs:
– For over 80% of the abatement potential, less
than 15 USD per t of CO2e
– Total cost of building a green economy during
2010-2030 =150 billion USD
• Some of these costs could be financed
through climate finance
• Funding sources: own initiatives, supported
initiatives, market-based initiatives
Co-benefits of strategy:
– Public health: reduced indoor and outdoor
air pollution; improved water quality
– Rural development: improved soil fertility,
food security
– Reduced reliance on imported fossil fuels
Implementation plan
• Overall responsibility given to Ethiopia’s
Environmental Council
• Govern CRGE initiative under co-responsibility
of EPA and Min. of Finance and Econ. Devt.
• Use existing institutions whenever possible
• Stakeholder consultation key to awareness
creation, feedback & proper implementation
Next steps
1. Include GE strategy in sectoral
development plans
2. Identify and select priority initiatives
3. Prepare implementation, resource, and
investment plans
4 initiatives selected for fast-track
implementation:
1. Exploit vast hydropower potential;
2. Promote improved rural cooking
technologies;
3. Improve livestock value chain;
4. Reduce Emissions from Deforestation and
forest Degradation (REDD).
Examples of actual projects being
implemented:
Grand renaissance dam on the Blue Nile - 6000 MW
gen. capacity, mainly financed domestically (bonds,
donations)
Wind energy, pilot production
through connection to the grid
Humbo afforestation/reforestation project: first
CDM project in Ethiopia (covering 2,728 ha)
Some more examples
• Construction of infrastructure for light rail
network started in Addis Ababa
• Derba cement factory (climate finance for cleaner
technology)
• Blending of ethanol with gasoline
• Ethanol cook stoves to households
Concluding remarks
• Adaptation to local context: countries need to
prepare their own GE strategies; identify synergies
and trade-off
• Green investment/technologies important vehicles to
build green economy
• Public-private partnership opportunities
• Political commitment important
Concluding remarks (2)
• Government needs to create enabling
environment (provide incentives + appropriate
institutional arrangements)
• North-South compensation on global env.
problems (adaptation, mitigation etc. on
principle of common but differentiated
responsibilities)
Concluding remarks (3)
• Need for research & learning
• Costs and benefits of strategies and policies
should be assessed
• Capacity strengthening needed: human
resources, financial
Comments are very welcome
Thank you
E-mail:
[email protected]