track 4: turning green into a business opportunity · 2015-01-30 · 30/04/2012 4 three-pronged...
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30/04/2012
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TRACK 4:TURNING GREENINTO A BUSINESSOPPORTUNITY
Lorenzo SantucciEnvironmental Affairs OfficerEnvironment and Development Division
East Asia Low Carbon Green Growth Roadmap ForumSeoul, 25-26 April 2012
• System change for green growth will providesignificant opportunities for businesses
• But government need to create the enablingenvironment
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Green business is already growing
Green sectors are among the most dynamicWorld market of environmental goods and servicesUS$4.7 trillion in 2008 (5% annual increase)Asset finance for clean energy projects reachedUS$41.8 billion in 2011 (9% annual increase)Sales of organic products US$60 million in 2010
Great growth potentialAdditional opportunities estimated around US$3-10trillion annually by 2050Organic products US$ 900 millionCertified forest products US$50 billion
Benefits
Investments and growthJobsEarly mover advantageCompetitiveness and market accessAccess to financingSavings and efficiency gains
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ObstaclesTime and price gaps
Need to create a level playing field for sustainablesolutions
UncertaintyBusinesses need predictable and transparent legislation
Technical know-howSMEs may lack know-how on how to green theiroperations
Consumer awarenessConsumers often unaware of green products, confusedby many labels
A wide range of policy instruments available
Category Sub-category
Regulatory instruments Target setting
Standards
Environmental regulations
Economic instruments Fiscal instruments
Charge systems
Market creation
Financial mechanisms
Information instruments Eco-labelling
Voluntary agreements
CSR and environmental reporting
Partnerships
Education and training
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Three-pronged strategy
1. Green existing industries2. Promote new green products and services3. Turn natural capital into a business
opportunity
Green existing industries
All industries need to improve their environmentalperformanceEnergy and resource efficiency makes business sensebecause it reduces the cost of production as well ascompliance with future environmental standardsSeveral approaches to greening industries:
Circular economyCleaner productionIndustrial symbiosis3R – reduce, reuse, recycle
Governments need to set-up a national framework forgreening industries
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Promote new goods and services
Green growth provides an opportunity for newindustries to emerge
Renewable energy, ESCOs
Governments need to create the necessaryconditions for investments into these sectors,including:
RegulationFiscal incentivesSector-specific strategies, technology roadmapsGreen public procurement
Turn natural capital into abusiness opportunity
Preserving ecosystems and investing in naturalcapital can create opportunities for profit andemployment
Preserved ecosystems can be turned into an eco-tourismattractionSuncheon city, Korea, attracted more than 3 million visitors ayear and generated 6,400 new jobs and economic benefitsof US$89 million by preserving its wetlands
Sustainable (organic) agriculture can marry theneed for profit and for preserving nature
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Thank you for your attention