How has Rio +20 promoted future national level efforts to move towards greener and fairer economic models?

17 September 2012, StockholmTom Bigg, IIED

Real world context for GE, Rio +20*Knock on effect of the Eurozone crisis

Push for reform of financial systems

Impacts of climate change and unpredictability (increasing food prices etc.)

Shale gas becoming widely available and cheap due to hydraulic fracturing (fracking)

Financial crisis accelerating the shift in economic power to emerging economies

About the Rio Summit*Formal agenda focused on two broad themes:Green economy in the context of SD and poverty eradicationInstitutional framework for SD

2. New voices, perspectives evident but participation was uneven

3. Many parallel strands to Rio not all about the official negotiations

*

5 Fault lines on GE in RioPutting a price tag on nature: protection or commodification?

Differing views ALBA Group (Latin America) - European Union

Interests of OECD / emerging economies / LDCs on GE not aligned

Least Developed Countries GroupMiddle Income Countries Civil society in emerging economies

Top down vs. bottom up models

Caribbean Action Learning Group on GEGlobal Green Growth Initiative

*Fault lines on GE in Rio (2)

4. SD Goals vs. post 2015 framework for development assistancePotential for new aid narrative (however, risks undermining poverty reduction, core development objectives)Focus on universality in SDGs

5. Whats in a name: green economy or green growth?MckinseyBrazilian govt

5 key Rio Commitments:*The Future We Want. Role of co-operatives and micro enterprises Job creation Plurality of different GE approaches

Voluntary Commitments.50:50 Action on Natural Accounting campaign (World Bank)

Country Commitments. Gabarone Declaration

and 4 Rio failures:*

No agreement on constraining or limiting the unsustainable activities of corporations

Resistance to any acknowledgement of planetary boundaries or ecological limits

Process was flawed typified by take it or leave it text dropped in by Brazilian govt in place of negotiated agreement

Outcome document failed to establish SD as the basis for solutions to the current economic, environmental and social crises

Implications for development* co-operation

OECD work on green growth in developing countries draft available and consultation underway.

Cautious interest from members of the LDC GroupAgainst a single approach Must lead to short term mainstream improvementsLong term resilience and resource securityImprove equitySustainable development remains the goal GG a means to an end, but must be well governed

What kinds of policies have helped* GG in developing countries?

Many proven/promising mechanisms & instruments: Focus on governance of public expenditure and marketsOthers create green incentives for investors, business and households

e.g. Government expenditure review *Routine Qs for all departments:Expenditure on env?% return on env investments?Sensitivity to env risks?Can env revenue be increased?Tanzania review led to env budget increase by 500%

e.g. Sustainable public procurement *Public procurement 25-30% of GDP in LICsGovt green procurement can lead markets Risk: initial lack of experience and suppliers can lead to monopoly and vested interests

Possible GE research and action agenda*What research and analysis is particularly needed in the near future?

More context specific assessments

Connections with other linked research agendas and policy regimes

Dialogue and collaborative research in particular developing countries

South-South sharing of experience and tools

Increased focus on informal economy

Explore sectors / opportunities with high potential for poor rural and urban dwellers that also produce environmental benefits

Transforming economies and societies*What broader framework for progressive actors to use GE to achieve major change?

Listen more and impose lessInclusion and equityValue changesStructures and systemsMacroeconomic research, case-making and policy optionsGreen financing modelsGreen accounting and accountability

Further resources*www.greeneconomycoalition.org

www.iied.org

www.shapingsustainablemarkets.org