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For a Development-Led Green Economy

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For a Development-Led Green Economy UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT 1 9 9 2 + 2 0 1 2 THE For a development-led green economy New York and Geneva, 2011 Road to Rio(7)+20.indd 1 2/10/11 1:52:03 AM The Road to Rio+20 For a development-led green economy Contributors ii Project Director Project Coordinator Editor Editorial team Technical Support Graphic Design Printing Photographs Lucas Assunção Eugenia E. Nuñez Chris M. Simpson Gilles Chevalier Khalid El Morabit Rafe Dent Andrés Carnevali P. United Nations Office Y. Arthus-Bertrand Daniel De La Torre U. Lalen Lleander at Geneva (UNOG) Günter Fischer Robert Hamwey Daniel Spiro Fotolia Leila Ghandi U.N. Photo Acknowledgments Special thanks go to the authors for contributing their work to this publication. The team wishes to also express its gratitude to Mr Yann Arthus-Bertrand and Ms Leila Ghandi for providing so graciously their photographs. Photo credits, by page Yann Arthus-Bertrand front cover, x, 2, 8, 9, 12, 13, 15, 22, 24, 27, 28, 36, 38, 41, 43, 44, 47, 54, 78, 80, 81, back cover U.N. Photo: Marco Dormino 5 Albert G. Farran 6 Tim McKulka 8 Jeffrey Foxx 10 John Isaac 14, 84 Michos Tzovaras 18 Eskinder Debebe 19, 55, 62, 67 Yutaka Nagata 20, 34 Christopher Herwig 27, 43 Mark Garten 53 Ciganovic 55 Paolo Filgueiras 56 Martine Perret 72 Fotolia: Desaxo 30 Frank Röder 31 Valcho 49 Agence DER 54 Günter Fischer 50, 55 Pierre Virot 60 Bernd Untiedt 67 Ricardo Zerrenner 67 Caelusconsult 71 Dan Crosbie 73 Leila Ghandi 76, 86 Aderee 84, 85 Managem 87, 88, 89, 90 Disclaimer The authors of the articles are solely responsible for their contributions. but full acknowledgement is requested. A copy of the publication The views expressed should therefore not be attributed to UNCTAD, containing the quotation or reprint should be sent to the UNCTAD ed paper any other institution or Member State. secretariat, attention to: Director, Division of International Trade in cl The presentation of material do not imply the expression of any position Goods and Services, and Commodities, E.8011, Palais des Nations, whatsoever on the part of the UNCTAD secretariat concerning the CH-1211 Geneva 10, Switzerland. legal status of any country, territory, city or area, or of its authorities; Photographs are the property of photographers and were made the delimitation of the frontiers or boundaries of any country available thanks to their generosity. They are used without or territory, or the endorsement of any commercial firm or product. commercial purposes. The publisher has made every effort to trace ted on recy Material (excluding photographs) may be freely quoted or reprinted, copyright holders. Prin All rights reserved. Copyright©United Nations, 2011 Road to Rio(7)+20.indd 2 2/10/11 1:52:05 AM Editorial Welcome to this first issue in a projectedUNCTAD series to be published in the run-up to Rio+20, iii the UN Conference on Sustainable Development (UNCSD) in 2012. The aim is to provoke discussion, advance new ideas, and provide inspiration for the future Conference whose result should be consensus on where we want to go in sustainable development and how developed and developing countries should work together to get there. This edition looks at the Green Economy: one which is low carbon, resource efficient and socially inclusive. As a concept, however, it needs to be placed within a specific context, which Part 1 of this volume attempts to do, both explaining and informing. Part 2 offers a variety of commentary from the supportive to those full of doubt, pro- viding a measure of the task ahead to achieve the necessary consensus. In Part 3 we take a look at issues critical in the management of the transition, not the least of which, as some authors point out, is funding. In each number of the series, we will focus on how selected countries have launched initiatives to make progress in their ‘green’ transition. Part 4 presents Morocco and looks at how it has integrated environmental issues into national strategies. It posits the view that government and the private sector, working together, can draw inspiration from the green economy initiative to better manage natural resources, reduce dependence on fossil fuels and, at the same time, move ahead with their economic and social objectives. Road to Rio(7)+20.indd 3 2/10/11 1:52:05 AM Road to Rio(7)+20.indd 4 2/10/11 1:52:05 AM Road to Rio(7)+20.indd 5 2/10/11 1:52:05 AM Foreword vi The green economy, within the context of sustain- How then, do we transition to a green economy? able development and poverty eradication, is one of the two themes of the 2012 Conference on Sustainable De- There are at least four key elements that need to be ad- velopment, to be held in Rio de Janeiro. It encompasses dressed for a successful transition. First, identifying new some of the most important challenges we face today: sources of funding that can be directly applied to tran- eradicating poverty, improving our relationship with the sitional efforts in developing countries; second, creating environment, addressing the potential negative impacts an enabling environment that is conducive to private of global climate change, and creating a new path for sus- investment that will support these efforts; third, tak- tainable development. ing advantage of trade as a supporting tool for sustain- able development and avoiding the temptation of green The green economy is defined as an economy that results protectionism; and fourth, designing new and effective in improved human well-being and reduced inequalities, mechanisms to transfer green technologies to developing while not exposing future generations to significant envi- countries. ronmental risks and ecological scarcities. It seeks to bring long-term societal benefits to short-term activities aimed The international community has a role to play in sup- at mitigating environmental risks. A green economy is an porting the transition of developing countries and en- enabling component of the overarching goal of sustain- suring it takes place in accordance with the principles of able development. equity and sustainable development. A green economy does not automatically imply higher Developed economies will have at hand greater financial, levels of output and employment when compared with a human resource and technological means to navigate “brown” (or traditional) economy. Rather, moving towards their transition to a green economy with relatively low a green economy implies not only the mainstreaming of costs. Conversely, developing economies are likely to green niches in specific sectors of an economy but also incur higher transition costs. It is difficult to imagine a a change in an economy’s overall social construct. The transition phase in which, at least in the early stages, the sustainable development challenge for a green economy internalization of the environmental and social costs do is to be able to produce more wealth, employment and not result in a reduction in real income. better social services, coupled with a lower absolute use of natural resources and greater reliance on less carbon- There is, therefore, a genuine basis to argue for significant intensive and renewable energy, without causing regional investment to assist developing countries in their move displacement due to uneven endowment of natural to a green economy and thereby achieve a higher degree resources. There is important policy work to be done of sustainable development. This is particularly so if it is to ensure that paths to a greener economy are socially accepted that a more sustainable, green and less carbon- inclusive and contribute to equitable economic and social intensive world economy comprises a global common development. good that benefits all humanity. Short of accepting this, the internalization of environmental costs is an extra ef- fort that many countries, both developed and developing, may not be willing to make voluntarily or undertake in isolation. Road to Rio(7)+20.indd 6 2/10/11 1:52:05 AM vii The green economy is not a theoretical concept. Some will be referred to the World Trade Organization’s countries are already moving aggressively towards it and dispute settlement mechanism, which could be corrosive it is imperative that all countries consider reshaping their to the multilateral trading system. development strategies and practices accordingly. Inter- national cooperation will help ensure that opportunities Whether a green economy has the potential to become arising from the transition are maximized and the risks the basis for a new development path will depend on how minimized. Multilateral cooperative action is the only its benefits are perceived and the burden of the transition way forward. costs ultimately shared. UNCTAD will provide a forum for debating and addressing all the issues raised herein The recent UNCTAD Ad Hoc Expert Meeting on the Green in the run up to the 2012 United Nations Conference on Economy identified the transfer of appropriate technol- Sustainable Development. ogy, the leveraging of climate finance and the transition to more sustainable lifestyles (as opposed to lower living It is the aim of this publication, the Road to Rio +20, to standards) in industrialized economies as fundamental contribute to the debate through a collection of essays steps towards a feasible transition. that provide different perspectives on how to increase the benefits and reduce the risks in the transition to a It will also be important to create innovative new markets development-led green economy. I hope the articles such as forestry carbon credits, and focus more attention will trigger more critical thinking and awaken the imagi- on South-South trade and technology transfer. nation on our journey to Rio de Janeiro in 2012.
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