Conference_20130305_Skúli Helgason

Sustainable prosperity - a model society

Skúli Helgason

• Polarization between nature conservation and heavy industry has divided the Icelandic population for decades.

• Green growth coordinates economic policy with Iceland´s singular dependence on natural resources through fisheries, tourism and renewable energy.

• The demand for green energy is increasing and Icelanders have a comparative advantage in terms of extensive knowledge in the field of renewable energy.

• Icelanders have one of the largest ecological footprints in the world.

Why Green Makes Sense

Iceland can be a model green economy,

emphasizing clean natural environment,

sustainable use of energy,

innovation and

education towards sustainability.

A Vision for Iceland

• The Government will set an example and create conditions for the development of a green economy.

• Economic incentives will be used to promote green economic activity.

• Green jobs will be created.

• Emphasis will be placed on promoting green investments from local and foreign sources.

Statement of Policy

• The Polluter-Pays-Principle will form the basis for implementing green fees and tariffs.

• The Precautionary Principle to be integrated with the national fiscal and employment policy.

• Education on sustainable development and environmental issues will be emphasized.

• The green economy will be an integral part of the national promotional strategy.

Statement of Policy (cont.)

• The green economy shall be a priority in the government´s economic and employment policy.

  • Althingi, all cabinet ministries and public institutions shall

implement environmental management plans to reduce waste and negative environmental impact.

• Increased emphasis on green public procurement.  Eco-friendly calls for tenders shall be increased to 50% in 2015 and 80% in 2020.

• Iceland shall ratify Appendix 6 to the MARPOL Convention for the Prevention of Pollution from Ships and declare the Icelandic exclusive economic zone an Emission Control Area.

The State as a Model

• A Green Investment Fund shall be established to invest in green small and medium businesses in Iceland.

• A five-year campaign to attract green foreign direct investment (FDI) to Iceland in designated fields.

• A Green Innovation Fund shall be established to fund green R&D and innovation projects.

• The Government shall develop an action plan to increase organic production to a level of 15% of national agricultural production by 2020.

Green Jobs and Investments

Administration and Analysis

 • The green economy will be located in the Prime Minister´s Office

which will coordinate the work of all cabinet ministries. The PMO’s office will be responsible for inviting other stakeholders to collaborate e.g. municipalities.

• Genuine Progress Indicator (GPI) shall be calculated and published along with GDP measurements.

• Provisions on Cost-Benefit Analyses (CBA) shall be added to legislation on environmental impact assessment of plans and projects.

• A comprehensive revision of the legislation on waste to remove barriers to the recycling industry in Iceland.

 •Renewable energy for transport will not be taxed before its share has reached 20% of total use in transport.

•Private businesses will be reimbursed up to 20% of the cost of implementing certified environmental management systems (for instance ISO 14001 or EMAS).

•The Ministry of Finance shall develop pollution fees, which will be used to partially reimburse private businesses that invest in pollution prevention solutions in respective industries.

•Public institutions will be reimbursed up to 20% of product costs that meet terms and conditions of Environmental Labels Type 1.

Economic Incentives

• Innovation Center Iceland shall develop a methodology and tools for “greening” private businesses.

• An educational campaign shall be launched concerning the real cost of alternative means of transport and the relationship between different means of transport and health.

• All legislation pertaining to public institutions shall be revised in order to integrate the concept of sustainable development into the statutory purposes of the respective institutions.

Green Revolution of the Mind

• The Icelandic Government introduced an Investment Plan for 2013-2015 that included a proposal for allocating 25 million euros towards implementing the first phase of the policy on the Strengthening of the Green Economy.

• The national budget for 2013 includes funding for numerous Green Economy projects including the Green Investment Fund, Green Public Procurement, Energy Conversion in Transportation, Green Steps for Government and Education on Green Economy and Sustainability.

Green Growth 2013-2015

Green Public Procurement

•Purchasing power of the public sphere is 300 billion IKR (1,8 billion euros).

•State and municipalities collaborate on defining environmental criteria for different product groups.

•GPP would benefit from more joint procurement in the public sphere.

•Nordic collaboration essential for sharing knowledge and tools.

Green Public Procurement – cont.

•Define needs and consult market actors prior to tenders.

•Share tender documents and contracts .

•Public Procurement Innovation (PPI)

•Examples: Cloud Printing and IT solutions in schools.

•Policy currently under review.

Green Investment Fund

•500 million IKR (3 million euros) will be allocated towards the establishment of a Green Investment Fund in 2013.

•Invest in small and medium sized green businesses in Iceland.

•The fund will be hosted by NSA Ventures, a leading Icelandic Venture Capital Fund – member of the Nordic Venture Network.

•Interesting investment opportunities in Clean Tech, Green IT, Energy Conversion, Energy Management, Eco-Tourism etc.

Pilot Project- National Hospital

•Biggest workplace in the country with 4600 employees.

•Environmental Policy with quantifiable targets

•Recycle, reduce waste, use of water and electricity

•Green Transportation Contracts

•Green Public Procurement

• Parliamentary resolution proposed by MP´s from all political parties.

• Parliamentary committee reached a unanimous conclusion in its´ final report.

• Unanimous support by the Standing Committee in Parliament

• Parliament approved final resolution by a vote of 43-0

Political Consensus