Green economy : A new approach

Lakshmi Dhar Hatai
The green economy is now firmly established on the international policy agenda, which is useful to review, and clarify the linkages with sustainable development. The concept of a Green Economy does not replace sustainable development; but there is a growing recognition that achieving sustainability rests almost entirely on getting the economy right. Two of the agenda items for Rio de Janeiro (Rio+20) are “Green Economy in the Context of Sustainable Development and Poverty Eradication”, and “International Framework for Sustainable Development”. Most interpretations of sustainability take as their starting point the consensus reached by the World Commission on Environment and Development (WCED) in 1987, which defined sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987).
WHAT IS GREEN ECONOMY?
· A Green Economy as one that results in “improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities” (UNEP, 2010). In its simplest expression, a green economy is low carbon, resource efficient, and socially inclusive. In a green economy, growth in income and employment are driven by public and private investments that reduce carbon emissions and pollution, enhance energy and resource efficiency, and prevent the loss of biodiversity and ecosystem services. These investments need to be catalyzed and supported by targeted public expenditure, policy reforms and regulation changes. This development path should maintain, enhance and where necessary, rebuild natural capital as a critical economic asset and source of public benefits, especially for poor people whose livelihoods and security depend strongly on nature.
· A Green Economy can be defined as an economy that results in improved human well-being and reduced inequalities over the long term, while not exposing future generations to significant environmental risks and ecological scarcities.
· The Green Economy Initiative is pro-growth, pro-jobs and pro-poor. It seeks enhanced economic growth, income opportunities and social inclusion.
· A Green Economy is characterized by substantially increased investments in economic sectors that build on and enhance the earth’s natural capital or reduce ecological scarcities and environmental risks. These sectors include renewable energy, low-carbon transport, energy efficient buildings, clean technologies, improved waste sustainable agriculture and forest management, and sustainable fisheries. These investments are driven by or supported by national policy reforms and the development of international policy and market infrastructure.
WHY GREEN ECONOMY?
· To enable economic growth and investment while increasing environmental quality and social inclusiveness
· To create the conditions for public and private investments to incorporate broader environmental and social criteria
· Growth in Gross Domestic Product (GDP) needs to be adjusted to account for pollution, resource depletion, declining ecosystem services, and the distributional consequences of natural capital loss to the poor.
GREEN ECONOMY INITIATIVES
The UNEP-led Green Economy Initiative, launched in late 2008, consists of several components whose collective overall objective is to provide a macroeconomic analysis of policy reforms and investments in green sectors such as renewable energies, clean and efficient technologies, water services and sustainable agriculture-can contribute to economic growth, creation of decent jobs, social equity and poverty reduction, while addressing climate risk and other ecological challenges.
· Producing a Green Economy Report and related research materials, which will analyze the macroeconomic, sustainability and poverty reduction implications of green investment in a range of sectors from renewable energy to sustainable agriculture, and providing guidance on policies that can catalyze increased investment in these sectors.
· Providing advisory services on ways to move towards a green economy in specific countries.
· Engaging a wide range of research, non-governmental organizations, business and UN partners in implementing the Green Economy Initiative.
MOVING TOWARDS GREEN ECONOMY
Green economy focus on the following 11 sectors
· Agriculture is the largest contributor to GDP in many developing countries and employs an estimated 1.3 billion workers globally. Sustainable agriculture and food system practices will increase the number of attractive, safe and knowledge-intensive jobs in farming operations, non-farm (pre & post-harvest) supply chains and market access infrastructures.
· Buildings are responsible for a third of the world’s total primary energy consumption. Retrofitting existing buildings has huge market potential and employment opportunities in developed countries. New green buildings can help developing countries meet additional demand for residential and commercial buildings while reducing energy consumption at low incremental investment cost.
· Cities are where more than half of today’s world population lives. Well-designed cities have great opportunities for greening through proximity of urban functions, modal shifts in transportation, and increased efficiency in provision of infrastructure, utilities and energy.
To be contd