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• In 2009, global GDP reached US
$58.22 trillion and yet, almost 80% of
humanity continues to live on less
than US$ 10/day.
• The poorest 40 percent of the
world’s population produce only 5
percent of global income.
• All kinds of services provided by
poor people in terms of natural resource management are not being taken into account, and neither is the way in which environmental degradation affects the poor.
The threat to the planet, inequality and barriers to growth go hand in
hand.
Income distribution under the current growth
scenario
Natural Capital: Wealth Creation for the Poor, growth opportunity for Developing Countries Ecosystem services and other non-marketed natural goods
account for 47 to 89% of the so-called ‘GDP of the Poor’
Natural-resource dependent sectors and ESS (2005)
Brazil Indonesia
India
Original share of GDP (%): agriculture, forestry, fisheries
6% 11% 17%
Adjusted share of GDP (%): including non market/ESS
17% 15% 20%
Share of ESS/non market goods of total income of the poor (%)
90% 75% 47%Hence need to invest in natural capital as a source of growth and well-being.
Building on natural capital assets
“…natural capital is essential to wealth creation, accounting for a quarter of wealth creation in the poorest countries, while such a share is only 2% in the
world’s richest countries.” Source: World Bank, 2006, Where is the wealth of nations?
GE: Growth through Clean Energy
77% of the population in LDCs is without access to electricity; 71% of the population in rural regions rely on biomass burning as the only source of energy.
Decentralized forms of energy access are proving more effective to bringing energy to the rural poor.
Grameen Shakti Programme in Bangladesh - installed 320,000 SHSs by 2009, in addition to biogas plants and improved cooking stoves, and aims to install over 1 million SHS by 2015 , while also providing the necessary maintenance, thereby generating local employment.
Massive potential with energy saving
In a country such as Senegal, a 100% replacement of installed incandescent lamps with compact fluorescent lamps at an estimated cost of $ 52 million, could deliver annual energy savings of 73% and cost savings of nearly US$ 30 million
Renewable Energy
Growing export opportunities for raw materials and components for renewable energy supply (RES) products (e.g. solar panels, wind turbines) – thus, entry into supply chains through trade in intermediate goods is a key opportunity for developing countries (encouraged by government policies, such as feed-in tariffs)
Exports of renewable energy: many developing countries have abundant renewable energy resources (potential to export), including solar energy, wind power, geothermal energy, biomass and hydro
Potential opportunities for sustainable second-generation biofuels
Seizing new trade opportunities
US$ 22.8 mil (2007/8)US$ 6.2 mil (2004/5)US$ 3.7 mil (2003/4)
48-68% less emissions and carbon sequestration
The global market:97% of buyers in OECD countries; 80% of producers in Africa, Asia and Latin America
The case of Uganda
2010: $59 billion > 2015: $105 billion
Carbon Credits
• If only all the small farms on the planet employed sustainable practices, they might sequester a total of 2.5 billion tonnes of carbon annually.
• Such verifiable carbon sequestration levels could be equivalent to US$49 billion in carbon credits per year, assuming a carbon price of US$20/tonne.
FisheriesDemand for certified fish products
(such as eco-label products) has been gaining momentum
Sustainable procurement policies of large international food firms are likely to further drive demand
Processing: developing countries yet to exploit additional gains with product certification:
Particular growth areas in the market for frozen organic fish and sustainable aquaculture
Tourism: recreational fishing, whale watching, scuba diving, etc.
ForestsDeveloping Countries Trade and
Export opportunities in the forest industry include:
certified timber
recycled timber
non-timber forest products (NTFPs): food items, pharmaceutical ingredients and cosmetic products, etc.
forest tourism
Currently, demand outstrips supply
ManufacturingSwitching to more efficient
manufacturing will save energy and resources and thus enable developing countries to produce goods for export at a lower price (increased competitiveness)
Potential to generate new business from remanufacturing: paves the way for technology and knowledge transfer, increased employment and exports
Eco-labels can provide further opportunities to market sustainably manufactured products, particularly in light of the growing demand in developed countries
Energy efficient products include light bulbs and electrical goods
TourismTourism generates large export revenues for
developing countries and is a key driver of growth for the world economy (tourists account for greater than 9% of global GDP, estimated 1 bn. tourists in 2012)
small changes towards greening (e.g. more efficient water and energy use) can have large impacts
Investment in sustainable tourism generates significant financial returns as tourist choices demonstrate a preference for companies that implement best practices in their environmental management
Eco-tourism, which 83% of developing countries rely upon as a major export, is the fastest growing sub-sector of the tourism industry
Some multinationals are taking initiative
“Growth does not have to cost the
earth.”
• The Rabo Sustainable Agriculture Guarantee Fund (SAGF)has been initiated by Rabobank International in response to a call for Public Private Partnerships.
• The SAGF aims to enhance the access of selected small- and medium-sized producers of sustainable agricultural products in developing countries to working capital credit (pre-export trade finance) on the basis of commercial and sustainable terms.
• The core objective of the SAGF is financial sector deepening, which is defined as ‘increasing access to financial services for those who previously had restricted or no access’.
Rabobank Group
Robeco Asset Management • RobecoSAM believes fervently that the integration
of sustainability criteria into traditional financial analysis helps to gain additional insights into companies quality of management and future performance potential.
• RobecoSAM continuously promotes the benefits of Sustainability Investing in order to bridge the gap between the sustainability champions in the boardrooms and corporate offices and the investment professionals who are just beginning to recognize that a focus on sustainability creates value.
Vertical Gardens and Aquaponics in Gaza
• In 2011, 44% of people were classified as food insecure, and in rural areas this figure reached 52%.
• Over 80% of Gaza’s inhabitants are dependent on some form of external assistance.
• Land available for horticulture is extremely limited in the Gaza Strip.
• 97% of the Gaza Strip population are urban or camp dwellers, and therefore do not have access to land.
• 119 food insecure female-headed households living in urban areas were given innovative rooftop units connected to a fish tank.
• 24 units were installed in educational and community establishments.
International cooperation in crucialDCs and LDCs will clearly need external
sources of finance to achieve inclusive green growth, through both public funds and private investments.
Facilitating access to adapted technologies,
Addressing concerns about trade protectionism and ensuring fair and equitable trade norms at bilateral, regional and international levels.
Current Green Economy Engagement
Partnership for Action on
20
The Key Message
• Innovations do not work with perverse policies.
• There is a need for policy reform!
• Strong land tenure, and property rights
• Removal of unsustainable subsidies
• Increased investment towards sustainable practices
Redirecting Capital – supported by enabling conditions – is the key for
growing the green and Greening the grown.
Thank Youwww.unep.org/greeneconomy
You cannot solve the problem with the same kind of thinking that created the problem. Albert Einstein
