enabling frameworks that support a green economy transition jo puri united nation environment...
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Enabling frameworks that support a green economy
transition
Jo PuriUnited Nation Environment Programme
• increases human well-being,• is socially inclusive,• reduces environmental risks and
ecological scarcities,• is low carbon & resource efficient,• is a pathway towards sustainable
development.
UNEP’s Green Economy:
• US$ 162 billion on sustainable energies,
• US$ 122 billion in carbon markets trading
Moving forward:In 2009:
In 2020: • US$ 2.2 trillion in the low-carbon
energy market
• US$ 90 billion in forest carbon market
However, transition to a GE needs a policy framework
CORRECTING THE MARKET FAILURE :
•Use of regulation & taxes, user charges, TPS, budgetary activities (e.g., PES), pricing, & voluntary initiatives.
FACTS (UNEP)
•(2008) US$ 6.6 trillion of damages externalized (11% of global GDP)
•(2050) 62% on increase under BAU scenario
Externalities prevent capital flowing into a green economy
Agriculture
UK: GBP £ 5.16 billion
Germany: US$ 2 billion
China: US$ 1.4 billion (only pesticides)
Waste-related health damages
Palau: US$ 697,000
Tonga: US$ 450,000
Annual Externalities
Required Conditions:
1.Increased availability of finance
2.Strengthened governance for sustainability
3.Supportive market4.Existence of green
infrastructure5.Increased information, training
& awareness
Enabling Conditions I : Increased Finance
Funds Role Measures
Public
Catalysing private investments: • sharing risks at initial stages (e.g., grants, incubators, VC funds, production subsidies)
• guaranteeing infrastructure and services
• setting up environmental taxation (e.g., fees & charges, tradable permits)
• reforming subsidies
PrivateFinancing mature stages (e.g., loans, credit lines, guarantees)
• greening investments (e.g., ESG principles)
The Water Fund in Ecuador
Protect water resources while ensuring water use in Quito (1.5 Million inhabitants)
FONAG: Seed capital provided by IADB, USAID, Germany, Netherlands.
In 2009, US$7 Million, 1800 farmers.
Level Measures
International • negotiate agreements
e.g., trade, reform of international fishing laws, green technology transfer, climate change
National
• set up rules, regulations, standards, prohibitions, ecosystem access laws, integrated planning, intellectual property rights
• improve technical and administrative capabilities, transparency and accountability
• effective enforcements of laws
Enabling Conditions II : Governance
Reach food security while employing clean agriculture & renewable technologies
Strong agricultural institutions for R&D and providing services, trained workforce, fully public financed initiative, integrated planning.
7 years: 20,000 to 2 Million tonnes of food. 384,00 0 jobs
Urban Agriculture in Cuba
• Public works programmes
• Policy structure (e.g., PFIs, PPPs, low interest loans, feed-in tariffs)
• Infrastructure (e.g., electricity grids, telecommunications services, institutions for research & services)
Enabling Conditions III : Green Infrastructure
Removing Pesticide subsidies In Indonesia
Phase out crop and health harming pesticide use.US$1.5 Billion in damage in the rice sector.
Rice production grew by 3 M tonnes.National IPM Fiscal saving of US$100 Million
• Data collection & analysis need to be improved (e.g., monitoring)
• Workforce needs to be trained (e.g., retraining schemes, workshops)
• Public awareness has to be built (e.g., educational initiatives, campaigns)
• Life-cycle costs have to be disseminated (e.g., label & certification schemes)
Enabling Conditions IV: Information, Training,
Awareness
Conditions Measures
GovernmentsPublic funding (e.g., RD&D), green subsidies, public procurement
Supported by policiesInvestment-grade policy design (e.g., long-term guarantees)
Reflect true costs of good & services
Reforming harmful subsidies, setting up environmental taxation, PES
Enabling Conditions V: Supportive Markets
Recognize the provision of environmental services from forests. (4.2% pa loss)Established FONAFIFO (1997)
Initially financed by fuel taxes.0.9% net forest cover increase.Strong forest institutions, tax on fuel use, forest law, experience in forestry incentives
Greening Forests – PES in Costa Rica
Natural capital:AgricultureFisheries
ForestWater
Energy and resource efficiency:
EnergyBuilding
CitiesManufacturing
TourismTransport
Wastewww.unep.org/greeneconomy
Enabling conditions
& investments to green sectors
UNEP’s Green Economy Advisory Services
• Research – The Green Economy Report
• Bench-marking/indicators
• Advisory service
• Knowledge platform (OECD, World Bank,)
• TO BE FILLED BY KAMAL
Current Active Engagment
Thank You
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