Green Economy by Group12

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Group -12

Created by: 500186 Date: 1/2/2014Doc. Classification: General

MP13070 V B SharmaMP13071 Vivek BankaMP13072 B K DubeyMP13073 Chawar SinghMP13074 R K Pandey

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In recent years, the concept has emerged as

a potential remedy to some of the key market

and institutional failures.

Green Economy is more effective pathway to Sustainable Development and Poverty Eradication

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WHAT IS GREEN ECONOMYThe green economy is one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.

It is an economy or economic development model based on sustainable development and a knowledge of ecological economics.

It uses Threshold 21 model to analyse strategies for medium to long-term development and poverty reduction and reflects the dependence of economic production on the traditional inputs of labour and physical capital.

Focuses on enabling conditions for ensuring a successful transition.

WHAT LEADERS ARE SAYING?

“What is critical for Barbados and other small island developing states is that the green economy debate recognizes our structural vulnerabilities, offers a model to assist us in further realizing our sustainable development aspirations and creates the institutional platform that enables us to participate in innovative partnerships to help save the planet.”

H.E. Freundel Stuart , Prime Minister of Barbados, 28 March 2012“China will honor its commitment to growing a green

economy and promoting the conservation culture. … The key is to combine economic growth, equality and of

course the protection, preservation or even the rehabilitation of natural resources or natural capital.”

H.E. Hu Jintao, President of China, 12 November 2011India makes a strong case for a Green Economy .

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1987Our Common Future (BRUNDTLAND Report) Popularizes Term Sustainable Development

1992UN Conference on Environment and Development

(RIO EARTH SUMMIT)

1999Grassroots Anti-Globalization Movement Grows

Battle of Seattle

2000Millennium Summit

UN Millennium Development Goals

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2001First World Social Forum

Porto Alegre, Brazil

2008World Food, Fuel and Finance Crises Converge

Green Economy Idea Enters the MainstreamGreen Economy Initiative Launched by UNEP

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2012RIO +20

UN Conference on Sustainable Development

GREEN ECONOMY =

Low Carbon Growth + Resource Efficiency + Social Inclusivity

= SUSTAINABLE DEVELOPMENT

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UNEP – GREEN ECONOMY INITIATIVE

Selecting and driving transformation in key sectors - critical or highly material for greening the global economy

: Approach and Focus

UNEP – GREEN ECONOMY INITIATIVE

On enabling conditions (finance, subsidies, taxes, regulations, and related reforms that achieve GE objective)

Enabling Condition

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FOCUSAPPROACH

taxes, regulations

subsidies

finance

To reduce / eliminate unsustainable patterns of production and consumption

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(Agriculture)

• Strong comparative advantage for many developing countries:

– suitable climatic conditions and rich biodiversity

– less contaminated soils

• Organic:– 2010: $59 billion > 2015: $105 billion– most production is in developing countries (>

75%), most consumption in developed countries (> 95%)

– development of regional organic trade (e.g. South America)

– increasing demand for value-added organic products (e.g. juices, spices)

• Higher price premiums• Improved trade balances: use of local, instead

of costly imported, inputs and increased exports of sustainable agrifood products

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Simulation Model 2011 2030 2050Variables Unit Baseline Green BAU2 Green BAU2

Agriculture Prod. Bn US$/Yr. 1921 2421 2268 2852 2559

Crop Bn US$/Yr. 629 836 795 996 913

Livestock Bn US$/Yr. 439 590 588 726 715

Fishery Bn US$/Yr. 106 76 83 91 61

Employment M People 1075 1393 0.80 1703 1656

Agriculture water use

KM3/ Yr. 3389 3526 4276 3207 4878

Harvested Land Bn Ha 1.2 1.25 1.27 1.26 1.31

Deforestation M Ha /Yr 16 7 15 7 15

Calories per Capita / Day

Kcal/P/D 2787 3093 3050 3382 3273

Future Scenarios for Green Economy

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Fisheries (in a Blue World)

• Demand for certified fish products (such as eco-label products) has gained 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:

– Growth areas include frozen organic fish and sustainable aquaculture

• Tourism: recreational fishing, whale watching, scuba diving, etc.

The world’s marine fisheries are socially and economically vital, providing animal protein and supporting food security to over 1 billion people & 170 million jobs.

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1. Water, a basic necessity for sustaining life, goes undelivered to many of the world’s poor.

2. 1.4 million children under the age of 5 die due to a lack of access to clean water and adequate sanitation services.

3. Providing all households with sufficient and affordable access to clean water supplies as well as adequate sanitation.

4. Korea has invested US$ 17.3 billion in a Four Major Rivers Restoration Project to secure sufficient water, flood control, and improve quality & create 340,000 jobs.

5. Australia has invested A$ 3.1 billion to restore health to the seriously over-allocated Australia’s Murray Darling basin.

6. Cost of achieving the 2015 MDGs at US$ 142 billion per year for providing sanitation services and US$ 42 billion per year for drinking water.

7. Additional investment in water sector US$ Bn/year 191by 2030 and 311by 2050.

Water: A UNIQUE NATURAL RESOURCE

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Manufacturing• Switching to more efficient

manufacturing will save energy and resources and enable developing countries to produce goods for export at a lower price -> increased competitiveness

• Potential to generate new business from remanufacturing: -> technology and knowledge transfer, increased employment and exports

• Eco-labels to market sustainably manufactured products -> growing demand in developed countries

• New greener products, e.g. energy efficient products like light bulbs -> new market opportunities

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Forests

• Developing 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

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Renewable Energy

• Growing export opportunities for raw materials and components for renewable energy supply products (e.g. solar panels, wind turbines)

• Entry into supply chains through trade in intermediate goods 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

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Demonstrating that Greening is a new engine for growth,

addressing hurdles & enabling conditions

ecosystems & biodiversity, capturing these values, and

Green Economy Report

TEEB

Green Growth

Knowledge Platform

Networking with Civil

Society and Private Sector

Inter-agency Partnerships

Advisory Services

Green Jobs Initiative

UNEP, WB, OECD, GGGI

ILO, ITUC, IOE, UNEP

UNEP, UNDP, ILO, Governments, National

Institutions

UNEP working with 40 Agencies in the UN

system

GEC, GGGF, UN Global Compact

GEC Green Economy Coalition ITUC International Trade Union ConfederationGGGF Global Green Growth Forum OECD Organization of Economic Cooperation & DevelopmentGGGI Global Green Growth Institute UNDP United Nations Development ProgrammeILO International Labour Organization WB World BankIOE International Organization of Employers

PAGE (Partnership for Action on Green Economy)

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GREEN ECNOMY STRENGTHS

• A Proposal for Addressing the triple crisis• A Strategy to Create a Social Base.

GREEN ECNOMY WEAKNESSES• Danger of a Green-washing Consensus.• Closes off Space for Other Alternatives.• Cannot Address Infinite Growth on a Finite Planet.• Tries to Decouple Economic Growth from Environmental

Destruction.

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Key policy drivers? On the domestic level…

• Providing support to exporters to meet standards in international markets.

• Creating, maintaining and enforcing a stringent domestic standards.

• Changing fiscal policy (e.g. phasing out environmentally harmful subsidies) and employing new market-based instruments (e.g. green public procurement)

• Promoting innovation (i.e. investment in education and training, support for R&D).

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Key policy drivers? On the international level?

• Concluding the WTO Doha Round on:

(i) reduction of tariffs and non-tariff barriers to trade in EGS

(ii) discipline of fisheries and agriculture subsidies

• Creating an agreement on a joint effort to bring new technologies more quickly to the market (open innovation schemes, international R&D, publicly backed patent pools, etc.)

• Harmonising or granting equivalency of standards – ensure that different standard schemes for sustainable producers do not exclude developing country producers

• Promoting public awareness to increase consumer demand for sustainable food, products, and services.

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What is Rio+20?

Rio+20 is a joint endeavour of UN.

Rio+20 - the short name for the United Nations Conference on Sustainable Development to take place in Rio de Janeiro, Brazil, in June 2012 — is a historic opportunity to define pathways to aSafer, more equitable, cleaner, greener and more prosperous world for all.

Rio+20 is a chance to move away from business as-usual and to act to end poverty, to address environmental destruction andto build a bridge to the future.

Going “beyond GDP”

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• Rio+20 provides an opportunity to think globally, so that we can all act locally to secure our common future.

• Broadening the use of renewable energy sources that can significantly lower carbon emissions as well as indoor and outdoor pollution, while promoting economic growth.

• Making the transition to greener economies while focusing on poverty eradication.

• To build a green economy to achieve sustainable development.

• Lift people out of poverty, including support for developing countries.

• Improve international coordination for sustainable development.

• Governments are expected to adopt clear and focused practical measures for implementing sustainable development.

Advantages of Rio+20

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Green Economy and Sustainable Development in India:Stocktaking in the run up to Rio+20

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Description Triple Bottom Line BenefitsNatural Rural Employment Guarantee Act (NREGA) to promotes wage employment in over 615 rural districts.Aims to enhance livelihood security of households in rural areas of the country by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. To strengthening natural resource management through works that address causes of chronic poverty like drought, deforestation and soil erosion and so encourage sustainable development.

• Generated more than 3.5 billion days of work in first 2.5 Years reaching on average 30 million families per year.

• Women represent roughly half the employed workforce.

• NREGA has contributed to boosting the average wage of agricultural laborers by more than 25%.

• Improved ecosystem health through financing of rural works that address causes of drought, deforestation, and soil erosion.

• Crop and livestock production improved.

• Encouragement of transparency and accountability in governance

G E Policies & Programs in India

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Mahatma Gandhi NREGA at a Glance

Parameter Unit FY13-14 * FY’12-13 FY’11-12

Total Districts Nos. 644 636 635

Total Villages Nos. 778134 778134 778133

HH Registered Rs. Cr 12.9 12.9 12.6

Expenditure on Wages

Rs. Cr. 19297.1 27129.3 24306.2

Total Expenditure Rs. Cr. 27363.4 39658.6 37072.7

Wage Employment Provided (Total)

Lakhs 593.7 796.7 820

To Women Lakhs 288.9 374.9 373.3

Avg. Wage rate per day per person

Rs. 130.3 121.4 114.5

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Description Bottom Line BenefitsIn 1980 Indo-German Watershed Development Program. (IGWDP)

Approach to watershed management in drought-afflicted rural areas to combine natural resource management with poverty alleviation.

Investment of over 70  million euro.

Villages must contribute free labor - a common rural practice known as shramdan - to cover at least 15-20% of project costs.

11 union states and 352 projects spread across the states of  Maharashtra, Andhra Pradesh, Gujarat, and Rajasthan.

• Increased availability of agricultural work.

• 245,000 people trained in watershed management.

• Enhanced stabilization of wage levels.

• The Programs now covers over 300,000 hectares of dry lands.

• Improvements in water table level.

• Reduced vulnerability to erosion and drought.

• As per World Bank it has the highest efficiency of all analyzed programs in Maharashtra

G E Policies & Programs in India

Challenges & Opportunities

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Challenges •Increasing demand for food•Competing demand from biofuels•Limited arable land and scarce resource like water•Limited availability of mineral inputs•Rural labour issues•Increased vulnerability of agriculture due to Climate change•Overfishing•Small scale Fisheries & Subsidies

Opportunities•Government awareness•Donor support & Private funding •Increasing consumer demand for sustainable food•Adopting partnering and Farm mechanization.•Jobs supported by global fisheries.•Investing in biodiversity and ecosystem services.•Investing in improved forest management and certification

GE Transition is not without challenges, particularly for poor

CONCLUSION

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• Potential to achieve sustainable development andEradicate poverty on an unprecedented scale, withspeed and effectiveness.

• Green economy supports growth, income and jobs.

• In the longer term – 2020 and beyond – moving • towards a green economy would outperform BAU by both

traditional measures (GDP growth) as well as more holistic measures (per capita growth).

• Sectors, such as agriculture, buildings, forestry and transport under green economy delivers more jobs in the short, medium and long-term than BAU.

• A large amount of the funds needed for green investments at scale in the initial stages of the transition towards a green economy must come from new and innovative financing mechanisms.

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WE wish you always:

Clean Air to breath, Fire to warm you, Water to drink andThe earth to live in.

THANK YOU !