Transcript www.cuts-geneva.org

Income distribution under the
current growth scenario
• In 2009, global GDP reached US
$58.22 trillion and yet, almost 80% of
humanity continues to live on less
than US$ 10/day.
• The poorest 40 percent of the
world’s population produce only 5
percent of global income.
• All kinds of services provided by
poor people in terms of natural
resource management are not
being taken into account, and
neither is the way in which
environmental degradation affects
the poor.
The threat to the planet, inequality and barriers
to growth go hand in hand.
Natural Capital: Wealth Creation for
the Poor, growth opportunity for
Developing Countries
Ecosystem services and other non-marketed natural goods account for 47 to
89% of the so-called ‘GDP of the Poor’
Natural-resource dependent
sectors and ESS (2005)
Brazil
Indonesia
India
Original share of GDP (%):
agriculture, forestry, fisheries
6%
11%
17%
Adjusted share of GDP (%):
including non market/ESS
17%
15%
20%
Share of ESS/non market goods
of total income of the poor (%)
90%
75%
47%
Hence need to invest in natural capital as a source of growth
and well-being.
Building on natural capital assets
“…natural capital is essential to wealth creation, accounting
for a quarter of wealth creation in the poorest countries, while
such a share is only 2% in the world’s richest countries.” Source:
World Bank, 2006, Where is the wealth of nations?
GE: Growth through Clean Energy
77% of the population in LDCs is without access to
electricity; 71% of the population in rural regions
rely on biomass burning as the only source of
energy.
Decentralized forms of energy access are
proving more effective to bringing energy to
the rural poor.
Grameen Shakti Programme in Bangladesh installed 320,000 SHSs by 2009, in addition to
biogas plants and improved cooking stoves, and
aims to install over 1 million SHS by 2015 , while
also providing the necessary maintenance,
thereby generating local employment.
Massive potential with energy saving
In a country such as Senegal, a 100% replacement
of installed incandescent lamps with compact
fluorescent lamps at an estimated cost of $ 52
million, could deliver annual energy savings of
73% and cost savings of nearly US$ 30 million
Renewable Energy
Growing export opportunities for raw
materials and components for
renewable energy supply (RES)
products (e.g. solar panels, wind
turbines) – thus, entry into supply chains
through trade in intermediate goods is a
key opportunity for developing countries
(encouraged by government policies,
such as feed-in tariffs)
Exports of renewable energy: many
developing countries have abundant
renewable energy resources (potential
to export), including solar energy, wind
power, geothermal energy, biomass and
hydro
Potential opportunities for sustainable
second-generation biofuels
Seizing new trade opportunities
296,203 ha/
206,803
60%/ 359% farmers
increase
(2008)
48-68% less emissions and
carbon sequestration
185,000 ha,
45,000 farmers
(2004)
US$ 22.8 mil (2007/8)
US$ 6.2 mil (2004/5)
US$ 3.7 mil (2003/4)
The global
market:
97% of buyers in
OECD countries;
80% of
producers in
Africa, Asia and
Latin America
2010: $59 billion >
2015: $105 billion
The case of Uganda
Carbon Credits
• If only all the small farms on the planet employed sustainable
practices, they might sequester a total of 2.5 billion tonnes of carbon
annually.
• Such verifiable carbon sequestration levels could be equivalent to
US$49 billion in carbon credits per year, assuming a carbon price
of US$20/tonne.
Fisheries
Demand for certified fish products
(such as eco-label products) has
been gaining momentum
Sustainable procurement policies
of large international food firms
are likely to further drive demand
Processing: developing countries
yet to exploit additional gains
with product certification:
Particular growth areas in the
market for frozen organic fish
and sustainable aquaculture
Tourism: recreational fishing, whale
watching, scuba diving, etc.
Forests
Developing Countries Trade and
Export opportunities in the
forest industry include:
certified timber
recycled timber
non-timber forest products
(NTFPs): food items,
pharmaceutical ingredients
and cosmetic products, etc.
forest tourism
Currently, demand outstrips
supply
Manufacturing
Switching to more efficient
manufacturing will save energy and
resources and thus enable
developing countries to produce
goods for export at a lower price
(increased competitiveness)
Potential to generate new business
from remanufacturing: paves the
way for technology and knowledge
transfer, increased employment and
exports
Eco-labels can provide further
opportunities to market sustainably
manufactured products, particularly
in light of the growing demand in
developed countries
Energy efficient products include
light bulbs and electrical goods
Tourism
Tourism generates large export revenues
for developing countries and is a key
driver of growth for the world economy
(tourists account for greater than 9% of
global GDP, estimated 1 bn. tourists in
2012)
small changes towards greening
(e.g. more efficient water and
energy use) can have large
impacts
Investment in sustainable tourism
generates significant financial returns as
tourist choices demonstrate a
preference for companies that
implement best practices in their
environmental management
Eco-tourism, which 83% of developing
countries rely upon as a major export, is
the fastest growing sub-sector of the
tourism industry
Some multinationals are taking
initiative
“Growth does not have
to cost the earth.”
Rabobank Group
• The Rabo Sustainable Agriculture Guarantee Fund (SAGF)
has been initiated by Rabobank International in response to a call for
Public Private Partnerships.
• The SAGF aims to enhance the access of selected small- and
medium-sized producers of sustainable agricultural products in
developing countries to working capital credit (pre-export trade
finance) on the basis of commercial and sustainable terms.
• The core objective of the SAGF is financial sector deepening, which
is defined as ‘increasing access to financial services for those who
previously had restricted or no access’.
Robeco Asset Management
• RobecoSAM believes fervently that the integration of
sustainability criteria into traditional financial analysis helps to gain
additional insights into companies quality of management and future
performance potential.
• RobecoSAM continuously promotes the benefits of Sustainability
Investing in order to bridge the gap between the sustainability
champions in the boardrooms and corporate offices and the
investment professionals who are just beginning to recognize that a
focus on sustainability creates value.
Vertical Gardens and Aquaponics
in Gaza
• In 2011, 44% of people
were classified as food
insecure, and in rural areas
this figure reached 52%.
• Over 80% of Gaza’s
inhabitants are dependent
on some form of external
assistance.
• Land available for
horticulture is extremely
limited in the Gaza Strip.
• 97% of the Gaza Strip
population are urban or
camp dwellers, and
therefore do not have
access to land.
• 119 food insecure female-headed
households living in urban areas
were given innovative rooftop
units connected to a fish tank.
• 24 units were installed in
educational and community
establishments.
International cooperation in crucial
DCs and LDCs will clearly need external
sources of finance to achieve inclusive
green growth, through both public funds
and private investments.
Facilitating access to adapted technologies,
Addressing concerns about trade
protectionism and ensuring fair and
equitable trade norms at bilateral, regional
and international levels.
Current Green Economy Engagement
Partnership for Action on
20
The Key Message
• Innovations do not work with perverse policies.
• There is a need for policy reform!
• Strong land tenure, and property rights
• Removal of unsustainable subsidies
• Increased investment towards sustainable
practices
Redirecting Capital – supported by enabling conditions –
is the key for
growing the green and Greening the
grown.
You cannot solve the problem with the same
kind of thinking that created the problem.
Albert Einstein
Thank You
www.unep.org/greeneconomy
[email protected]